INTRODUCING

SOFTWARE AG

2018 ANNUAL REPORT

INTRODUCING

SOFTWARE AG

IMAGE AND STRATEGY BROCHURE
Freedom as a Service

Freedom as a Service

That is freedom. That is Software AG.

Software AG believes in data. It is in our DNA. Fifty years ago our Company was founded on a belief that data would one day change the world. That day has come. Today, any business that can harness, study and shape the data it holds has the power to unlock truly limitless possibilities for growth. We exist to offer our customers the freedom to explore those possibilities. Born as software pioneers, today we are data pioneers: a trusted, progressive and truly independent partner, empowering our customers to unlock their data, turn it in to value and shape a better future.

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Software AG at a Glance

As of December 31, 2018

865.7

million
TOTAL REVENUE

Sales Partners

4,763

EMPLOYEES
+4 percent year-on-year


31.5%

OPERATING PROFIT MARGIN
(EBITA, non-IFRS)

Sales partners

PARTNER ECOSYSTEM

More than 400

Alliances and Channel Partners


+120%

ANNUAL RECURRING REVENUE
DBP Cloud & IoT (acc)

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€0.65

Per Share
RECORD DIVIDEND

CSR

Sustainable Engagement

Corporate Social Responsibility (CSR)

Corporate Social Responsibility means genuine appreciation for responsible and sustainable action. Values such as trust, respect, sincerity and transparency are therefore of utmost priority. We have been applying these principles for many years to our relationships with customers, to our technology, to our partnerships, to investments in our company, and in educating our employees.

2018 Non-Financial Statement (PDF)

The Management Board's Outlook

In 2019 Software AG starts out on a new pathway toward sustainable, profitable growth.

Sanjay Brahmawar

Sanjay Brahmawar, Chief Executive Officer

"In our 50th year, Software AG is taking bold steps along a new path. We have tremendous opportunities and great strengths that we can capitalize on. Through our new strategy, HELIX, we are going to bring focus, execution and the true power of our team to everything we do; and drive our business toward sustainable, profitable growth. Our growth opportunity lies in a truly exciting space where the powerful forces of digital transformation and real-time data intersect. We have the expertise and ability to reimagine integration for this new era. We will be the go-to partner for our customers: a team that helps organizations bring together apps, clouds, IoT devices and data to unlock the true power of their operations in an age where change is constant and adaptability is key."

Arnd Zinnhardt (CFO)

Arnd Zinnhardt, Chief Financial Officer

"Software AG is optimistic about a strong financial year ahead. Our acquisitions in the area of IoT including Cumulocity, TrendMiner as well as Built.io have strengthened our position in our market of digital transformation and are already generating returns. We remain focused on operational excellence to drive continued high performance through the business cycles. The HELIX strategy is geared toward profitable growth. We will make targeted investments to support organic growth, but at the same time focus on efficiency gains across the business. We will maintain our robust financial position with a strong cash flow that gives us the power to take bold steps if and when we want."

John Schweitzer

John Schweitzer, Chief Revenue Officer

"2019 will see us building on our customer engagement and operational excellence philosophies to ensure they reside everywhere in the business. We will take time to understand why our customers trust and buy from us and, as a result, focus on high-value outcomes with them. We will deliver customer-driven innovation and exceed expectations through existing as well as exciting new and innovative partnerships. At the same time, we won’t go after every opportunity—choosing instead to deliver strong in the markets we can best serve and on our existing commitments, such as modernizing Adabas & Natural and delivering digital transformation outcomes for our customers."

DR_Stefan_Sigg_profile_image_250x250

Dr. Stefan Sigg, Chief Product Officer

"Software AG has made a long-term commitment to investing into Research and Development. In 2019, our primary focus remains in the areas of cloud computing, edge technologies, machine learning and the Internet of Things. These are four pivotal technologies that will guide organizations into the world of new data-driven business models. We also understand that breakthroughs happen within a culture of collaboration. So while we will continue to work with leading research institutes and universities, we are also excited to be working with our own customers and partners to create the innovations that make businesses around the world future-proof."

Freedom as a Service

we empower our customers
to turn data into value

Freedom as a Service

we unlock the power of data
to shape a better future.

CEO Interview

Outlook 2019

This is a strong Company. We have market-leading products, unmatched by any competitor or alternative. We serve high-growth markets in which some of the most exciting business issues of our time can be addressed by our technologies. We also have a unique culture, imbued in a 4,700-strong global family and enriched by the most powerful diversity of ideas and interactions.

We have gotten in our own way, but that is going to change—and change has already begun. Helix is our new strategy for unlocking our true potential. Created by our people, Helix sets us on a journey toward sustainable, organic profitable growth, delivered through three levers: Focus, Execution and Team.

When Software AG was set up in 1969 we were the first software company in Germany. In fact, this Company was right there at the start of the whole software industry. The entrepreneurial spirit of that time remains a powerful part of our DNA and something we will harness as we evolve from software pioneers to data pioneers, in support of our customers.

Integration is the key business challenge for all organizations, everywhere. It is only getting more pronounced through the proliferation of connected devices, mobile-first business models, and Industry 4.0. The opportunity for us to make our impact on solving this challenge is real—and it is also large. We stand before a total addressable market of €24 billion until 2023, enveloping technologies such as IoT, self-service analytics and digital twin. These are technologies where our position is strong, our vision is clear, and where we feel certain we have a right to win.

Let me take this opportunity to thank you for your trust and loyalty. With your continued support, we go forward from here a trusted, progressive and truly independent player. We wake every day to empower our customers to unlock their data, turn it into value and shape a better future for their organizations. By doing that we will move Software AG along a bold path to sustainable profitable growth.


Yours sincerely,

Sanjay Brahmawar
Chief Executive Officer

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