April 26, 2016 RESULTS 1 st QUARTER 2016 (IFRS, UNAUDITED) © 2016 Software AG. All rights reserved.
2 | SAFE HARBOR This presentation includes forward-looking statements based on the beliefs of Software AG management. Such statements reflect current views of Software AG with respect to future events and results and are subject to risks and uncertainties. Actual results may vary materially from those projected here, due to factors including changes in general economic and business conditions, changes in currency exchange, the introduction of competing products, lack of market acceptance of new products, services or technologies and changes in business strategy. Software AG does not intend or assume any obligation to update these forward-looking statements. This presentation constitutes neither an offer nor recommendation to subscribe or buy in any other way securities of Software AG or any of the companies that are members of the Group at present or in the future, nor does it form part of such an offer and it should not be understood as such. This presentation does not constitute an offer of sale of securities in the United States of America. Securities may not be offered or sold in the United States of America without registration or exemption from registration in accordance with the U.S. Securities‘ Act of 1933 in its currently valid form. © 2016 Software AG. All rights reserved.
3 | CURRENCY IMPACT ON REVENUE © 2016 Software AG. All rights reserved. Q Euro 33% US Dollar 32% Other 11% ILS 6% ZAR 5% BRL 3% GBP 7% (in €m; yoy) Q Q1 in % Licenses-2.0-3% Maintenance % Consulting & Other-0.6-1% Total % Currency impact on revenue 33% revenue in Euro 67% revenue in foreign currency Currency split Q AUD 3%
4 | DIGITAL BUSINESS PLATFORM © 2016 Software AG. All rights reserved. SEGMENT REPORT Q (in €m)Q Q ∆% ∆% acc Licenses %7% Maintenance %5% Total revenue %6% Cost of sales % Gross profit %5% Sales & Marketing %-11% Research & Development % Segment result %56% Margin in % 25.2%17.5%
5 | ADABAS & NATURAL © 2016 Software AG. All rights reserved. SEGMENT REPORT Q (in €m)Q1 2016Q ∆%∆% acc Licenses %79% Maintenance %-4% Product revenue %20% Other Total revenue %20% Cost of sales %-5% Gross profit %21% Sales & Marketing %23% Research & Development %-1% Segment result %24% Margin in % 70.4% 68.4%
6 | CONSULTING © 2016 Software AG. All rights reserved. SEGMENT REPORT Q (in €m)Q Q1 2015∆% ∆% acc Total revenue %2% Cost of sales %8% Gross profit %-24% Sales & Marketing % Segment result %-47% Margin in % 4.0%8.0%
7 | RESULTS © 2016 Software AG. All rights reserved. Q (in €m)Q Q1 2015∆% ∆% acc Total revenue % 9% Cost of sales % 3% Gross profit % 11% Margin in % 72.8%71.8% Research & Development Sales & Marketing %-6% Administration %-3% Other income / expense % EBIT % 67% Margin in % 22.0%15.1%
8 | NON-IFRS EARNINGS © 2016 Software AG. All rights reserved. Q * Corrected on July 20, 2016 from previously €41.6m and €0.55 respectively ** Weighted average shares outstanding (basic) Q m / Q1 2015: 78.9m (in €m)Q1 2016Q EBIT (before all taxes) Amortization on acquisition related intangible assets Other impacts from M&A activities Share based payments Restructuring / severances EBITA (Non-IFRS) in % of revenue (Non-IFRS)28.7% 24.8% Net income (Non-IFRS)38.7* 31.9 EPS (Non-IFRS)**0.51* 0.40
9 | CASH FLOW © 2016 Software AG. All rights reserved. Q (in €m)Q1 2016Q1 2015∆% Operating cash flow %./. CapEx* Free cash flow % in % of revenue29.3% 31.1% Free cash flow per share** % * Cash flow from investing activities except acquisitions and except investments in debt instruments ** Based on average shares outstanding (basic) Q1 2016: 76.2m / Q1 2015: 78.9m
10 | Mar. 31, 2016 Mar. 31, ,084.0 Assets Liabilities BALANCE SHEET © 2016 Software AG. All rights reserved. (in €m) Dec. 31, 2015 Dec. 31, , ,814.81,866.8 Cash and cash equivalents Financial assets Trade and other receivables Fixed assets (Goodwill / 900.0) Total Non-financial assets 1, , , ,814.8 Financial liabilities Other liabilities Deferred income Shareholders’ equity (ratio 58.8% / 60.1%) Total
11 | Product Revenue Digital Business Platform Product Revenue Adabas & Natural Operating Margin (Non-IFRS) 2) FY 2015 (in €m) % OUTLOOK © 2016 Software AG. All rights reserved. FULL YEAR ) At constant currency rates 2) Adjusted for non-operating items (see non-IFRS earnings results) 30.0% to 31.0% -4% to -8% 1) +5% to +10% 1) Outlook FY 2016 (as of January 27, 2016)
12 | APPENDIX © 2016 Software AG. All rights reserved.
13 | EARNINGS © 2016 Software AG. All rights reserved. Q * Weighted average shares outstanding (basic): Q1 2016: 76.2m / Q1 2015: 78.9m (in €m) Q Q ∆% EBIT (before all taxes) % Financial result % Profit before taxes % Other taxes % Income taxes % Tax rate in %34.3%33.2% Net income % EPS in €* %
14 | Q FY 2015 FY 2016* Amortization (in €m) Depreciation * Estimated FY 2017* AMORTIZATION / DEPRECIATION IMPACT © 2016 Software AG. All rights reserved. (PRELIMINARY)
15 | HEADCOUNT © 2016 Software AG. All rights reserved. BY FUNCTIONAL AREAS* AND GEOGRAPHY * According to P+L structure (in FTE) Mar. 31, 2016 Dec. 31, 2015 ∆% Mar. 31, 2015 ∆% yoy Total4,2994,337 -1%4,367-2% Consulting & Services1,8531,866-1%1,8162% Research & Development1, %9625% Sales & Marketing %967-14% Administration %622-3% Germany1,1441,178 -3%1,188-4% USA % % India %49730% Rest of world 1,9511,987 -2%2,050-5%
16 | Investor Relations Uhlandstrasse Darmstadt Germany T: +49 (0) 6151 / F: +49 (0) 6151 / W: softwareag.com © 2016 Software AG. All rights reserved.
17 | © 2016 Software AG. All rights reserved.