DGAP-Adhoc

Software AG Publishes Q3 Financial Figures and Confirms 2016 Outlook

Software AG / Key word(s): Quarter Results/Preliminary Results

14.10.2016 01:06

Disclosure of an inside information according to Article 17 MAR,
transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Ad-hoc-release pursuant to article 17 MAR

Software AG Publishes Q3 Financial Figures and Confirms 2016 Outlook

- One-time charge (provisions for lawsuit in the USA) burdens EBIT by
EUR5.4 million

- Q3 2016 DBP product revenue same level as Q3 2015

- DBP license deals with strategic customers valuing approx. EUR7.2
million planned for Q3 2016 were signed after the close of the quarter

- Adabas & Natural: performance confirms expected annual revenue

- Operating profit margin (Non-IFRS) up at 33.7 percent in Q3 2016

- Free Cash Flow up significantly

- Outlook confirmed for 2016 fiscal year

Earnings Performance

Software AG's earnings before interest and taxes (EBIT) were EUR50.1
million (2015: EUR66.8 mn.) in the third quarter. EBIT was burdened by a
one-time charge (provisions for lawsuitin the USA) in the amount of EUR5.4
million. Operating earnings (EBITA, Non-IFRS) totaled EUR66.8 million
(2015: EUR70.2 mn.). The operating profit margin increased to 33.7 percent
(2015: 32.5 percent) in the period under review.

DBP Business Line Performance

Product revenue (licenses + maintenance) for the Digital Business Platform
(DBP) totaled EUR101.9 million (2015: EUR103.2 mn.) in the third quarter,
which approximates last year's figure. License revenue dropped year-on-year
by 8.8 percent to EUR37.5 million (2015: EUR41.4 mn.). Third-quarter
maintenance revenue was up 6 percent from last year at EUR64.4 million
(2015: EUR61.8 mn.).

Taking into account the large DBP deals signed after the end of the third
period 2016, which were originally planned for the third quarter of 2016,
DBP license revenue (pro forma; sales performance) totaled EUR44.7 million,
which would have been 8 percent growth.

Adabas & Natural Business Line Performance

The Adabas & Natural (A&N) business line recorded EUR39.6 million (2015:
EUR39.2 mn.) in maintenance revenues in the third quarter of 2016,
representing 1.4 percent growth at constant currency. After an
exceptionally strong first half of 2016 with double-digit growth, as
expected, A&N license revenue dropped to EUR9.3 million (2015: EUR27.5 mn).
Total A&N revenue was EUR49.1 million (2015: EUR66.9 mn.). This reflects a
moderate decline of 5 percent over the course of the year, which is within
the anticipated range for fiscal 2016.