5th Sustainable Technologies Conference

DZ Bank / Deutsche Börse

5 June 2012

Arnd Zinnhardt

CFO

5 June 2012 - 2

This presentation contains forward-looking statements based on 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.

Safe-Harbor-Statement

5 June 2012 - 3

32%

51%

17%

Service License

Maintenance

Revenue Revenue development

0

100

200

300

400

2004 2005 2006 2007 2008 2009 2010 2011

Market and Positioning

• Mature market limited to existing customer base

• Installed systems difficult to replace

• Migration/outsourcing to UNIX/OS possible

• Market volume in decline

• Lifecycle enhancement by modernization and

add-on products

in €m

• High performance data base (Adabas)

• Rapid business application development (Natural)

• Products are mission-critical for 70% of our customers

• High margins and strong recurring cash flow

• Annual maintenance renewal rate: ~ 95% (average)

• Cost management: transfer R&D to low-cost countries

Business characteristics

FY 2011

(€ 381m)

Enterprise Transaction Systems – Strong Cash Flows

5 June 2012 - 4

32%

32%

36%

Service License

Maintenance

• Comprehensive middleware to design, develop,

deploy, operate, monitor and analyze

end-to-end process applications

(products: webMethods, ARIS, Terracotta)

• BPE products save cost and add business value

• “Digitization makes enterprises more competitive

and public administrations more efficient.”

0

100

200

300

400

500

2004 2005 2006 2007 2008 2009 2010 2011

• Technology leader (Gartner, Forrester)

• Software works across all installed systems

• Software AG is top 3 vendor (ESB/BPM)

• Market growth perspective (CAGR > 10%)

• Average deal size (deals > € 100k) € 500k

in €m

Revenue split Revenue development

Business characteristics Market and Positioning

FY 2011

(€ 528m)

2010: transfer of ARIS related revenues into BPE segment

Business Process Excellence – Driving Growth

5 June 2012 - 5

Americas EMEA

Germany Asia Pacific

PIIGS

5%

BRICS

14%

46%

32%

14%

9%

Product Revenue by Industry

*Based on product revenue (FY 2011)

Product Revenue by Region

Product Revenue by Industry

Revenue Split*

22%

21% Public Sector

Financial

Sector

Associations

IT

Manufacturing

Telecos

Transport & Logistics

Retail

Others

5 June 2012 - 6

483 621

721 847

1.120 1.098

0100200300400500600700800900

1,0001,1001,200

2006 2007 2008 2009 2010 2011

111 137

181 218

269 269

0

50

100

150

200

250

300

2006 2007 2008 2009 2010 2011

73 88

116 141

176 177

0

20

40

60

80

100

120

140

160

180

2006 2007 2008 2009 2010 2011

422 463 549

647 769

952

0

100

200

300

400

500

600

700

800

900

1,000

2006 2007 2008 2009 2010 2011

2011 – Again on Record Level (IFRS, in €m)

Revenue

Equity Net Income

EBIT

5 June 2012 - 7

(Revenue, in €m)

BPE – New Business Line Successfully Established

357 383

405 396 420

381

126

238

316

372

499 528

0

100

200

300

400

500

600

2006 2007 2008 2009 2010 2011

Business Process Excellence

Enterprise Transaction Systems

5 June 2012 - 8

€m

Segment Result & Margin Development 2006 - 2011

Strong dynamic of results

in Business Line BPE

Stable Contribution from

Database Business ETS

52

55 53

54

58 57

40

45

50

55

60

0

50

100

150

200

250

300

2006 2007 2008 2009 2010 2011 -20

2

19 22

29 29

-20

-10

0

10

20

30

40

-30

-10

10

30

50

70

90

110

130

150

170

2006 2007 2008 2009 2010 2011

€m % %

Segment margin, in %, right scale

Segment result, in €m, left scale

5 June 2012 - 9

Increasing Impact of BPE Result

115%

98%

78% 72%

63% 58%

-15%

2% 22% 28%

37% 42%

-40

-20

0

20

40

60

80

100

120

140

2006 2007 2008 2009 2010 2011

(Segment contribution split BPE/ETS, in %)

Business Process Excellence

Enterprise Transaction Systems

… leads to a balanced

income split

5 June 2012 - 10

Analytics Processes Integration Data Mgmt.

Application Platform

New services

(Business logic)

e.g. Order- to-cash

Process logic (BPM)

Process Intelligence

ESB (Integration logic)

Digital Enterprise Enables Flexibility and Agility

IN-MEMORY DATA STORE

5 June 2012 - 11

Software AG‘s – Technology Leadership

The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical

representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor,

product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.

Enterprise Service Bus (2011) Business Process Analysis Tools (2011)

5 June 2012 - 12

R&D in % of Product Revenue

9% 9%

9%

26%

22% 22% 19%

26% 24%

2008 2010 2009

BPE in % incl. Amortisation

ETS in %

BPE in %

Innovation through R&D as well as Acquisitions

8%

27%

18%

2011

2007

2008

2009

2010 2011 2012

Strategic

Acquisitions

Technology

Tuck Ins

5 June 2012 - 13

Memory

SLOW

EXPENSIVE

COMPLEX

Data in

Database Database

Data „In

Memory“

Innovation Big Data – In-Memory

Without BigMemory

FAST

COST REDUCTION

SIMPLY

SCALEABLE

REALTIME

HIGH PERFORMING

With BigMemory

Speed up / save Costs

5 June 2012 - 14

About my-Channels

Market-leading vendor for high-

performance messaging

Powers 2 of the top 3 market-leading

Financial Exchange platforms

Web Clients Enterprise Clients Mobile Clients

• High-throughput: 300,000 msg/sec

• Brokered, P2P, Distributed

• High fault-tolerance clustering

• Low Latency: 4 micro seconds

• Cloud-enabled

• ‘Last-mile’ messaging

Nirvana Messaging Platform

5 June 2012 - 15

Revenue split in % of Total Revenue, 2015: according to mid-term plan

Traditional Business

• Data Management (ETS)

New Business

• Organic Growth BPE

• Integration Technology

• Business Process Management

• Terracotta / Big Data

• Partner / Indirect Sales

• M&A / Strategic Acquisitions

~20%

Non Core Business

• SAP Consulting (IDSC)

Transformation of Business Drivers

2010 2015

~10%

~70%

~18%

~37%

~45%

€ 1bn

5 June 2012 - 16

Outlook FY 2012

* Net of currency, delta

(in €m)

Total Revenue Group

- thereof BPE

- thereof ETS

EBIT Margin

2011

381.3

527.9

24.5%

Outlook 2012 (as of January 24, 2012)

+5% to +15%*

23.0% to 24.5%

-12% to -7%*

1,098.3 -3% to +3%*

5 June 2012 - 17

Sustainability – Vital Part of our Business Case

Financial

Products

Society

Employees Science

Local

Community

Solve problems

and create

customer value

Solid investment –

sustainable growth

IT Eco systems and

global collaboration

Political Agenda

Setting

Corporate

Citizenship

Common targets

and shared values

5 June 2012 - 18

56 82

133 188

218 188

0

50

100

150

200

2006 2007 2008 2009 2010 2011

66

45 52 39

48 57

0

10

20

30

40

50

60

70

2006 2007 2008 2009 2010 20110.0

0.9

0.3

1.1

0.5 0.2

0

0.5

1

1.5

2006 2007 2008 2009 2010 2011

23 22 25 26 24 25

0

5

10

15

20

25

30

2006 2007 2008 2009 2010 2011

Software AG – a Solid Investment with Sustainable Growth (IFRS)

EBIT Margin (%)

Equity Ratio (%) Net Debt / EBITDA

Free Cashflow (€m)

n/a

Strategic acquisition

5 June 2012 - 19

Corporate Citizenship - Responsibility to local Eco-System

• Initiate and cooperate with initiatives in the IT sector

• Co-Founder of House-of-IT

• Co-Management of Software Cluster

• National IT-Summit – cooperate with Government & IT

• University Relations - Strategic Partnership with individual

promotions (cooperation with 150 universities)

• Chamber of Industry and Commerce – actively build company

friendly environment, member of executive commitee

• Sponsoring of sport programs for young people and employees

• Social Program - Vocational training / apprenticeship for

disadvantaged youth

Citizenship-

network:

5 June 2012 - 20

• The Software AG Foundation is one of Germany’s ten largest foundations

• Founded by Dr. hc. Peter M. Schnell in 1992

• It disburses financial support amounting to around € 30 million annually

• Under the principle of a “self-help grant”, the Foundation supports nonprofit

organizations not only with financial support but also with consulting services

in promoting project sustainability and further developments

• The Foundation finances many different projects in areas including: • science and research

• support for the elderly, disabled, children and young people

• education and training

• the environment

Software AG Foundation

Thank you