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RIB Software SE explains the effects of its YTWO joint venture on the accounting of the RIB Group at the Annual General Meeting

DGAP-News: RIB Software SE / Key word(s): Statement RIB Software SE explains the effects of its YTWO joint venture on the accounting of the RIB Group at the Annual General Meeting 01.06.2017 / 09:10 The issuer is solely responsible for the content of this announcement. 01-June-2017

RIB Software SE explains the effects of its YTWO joint venture on the accounting of the RIB Group at the Annual General Meeting

Stuttgart, Germany, 01 June 2017. The Annual General Meeting of RIB Software SE resolved to approve the management's proposals at all agenda items, including the authorization to purchase and use treasury shares, with a majority of more than 98%. Only the proposed amendment to the 2015 Stock Option Plan, which intended to make the performance targets more flexible at an unchanged high level, did not reach the required majority of 75%.

At the same time, the Administrative Board of RIB Software SE used the Annual General Meeting to show in detail the effects of the last year concluded joint venture YTWO on the financial figures of the RIB Group. In September 2016, RIB formed a joint venture with Flex (NASDAQ: FLEX), one of the world's leading contract manufacturers, with the aim to transform the building and housing industry. The joint venture operates under the name "YTWO Formative" and provides an open, cloud-based software solution that combines the strength of RIB's iTWO 5D BIM software capabilities with Flex's manufacturing, supply chain management and logistics expertise.

Flex and RIB invested each USD 60 million for an equal investment to the joint venture. Moreover, RIB provides to the joint venture licences for a licence fee in the amount of USD 45 million based on a software license agreement. Specifically, the Group has committed to deliver a fixed number of 30,000 licenses, as well as up to 15,000 licenses under certain conditions. RIB has calculated for financial reporting purposes the total number of licenses based on a qualified estimate at 41,820 to be delivered. In the fiscal year 2016, 15,000 software licenses were already delivered to the joint venture YTWO.