COMMERZBANK CONFERENCE

German Investment Seminar

Arnd Zinnhardt

CFO

10 January 2012

January 10, 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

January 10, 2012 | 3

Software AG Foundation

Free Float 70%

5,400+ Employees Worldwide • 2,900 Consultants • 850 R&D Staff

10,000 Enterprise & Public Sector Customers

Global Leader for Process & Integration Solutions

Revenue over €1 bn.

Software AG - At a Glance

January 10, 2012 | 4

EARNINGS PER SHARE (IN €)**

1.04

2009 2008 2003 2007

1.64 1.35 0.87

+30% +22%

+20%

56

+41%

+62%

+46%

82 133 188

847 721

+16% +17%

420 621

+29%

2004 2005 2006

483 411 438

+10% -2%

0.75 0.65* 0.09*

+16% +16% +646%

46 24* 8*

+22% +92% +200%

+7%

1,120

2.06

218

+16%

+26%

+32%

2010

15%

CAGR

56%

CAGR

60%

CAGR

* excluding gains from sale of assets ** adjusted for 1:3 share split (May 2011)

FREE CASH FLOW

REVENUE

(in €m)

218

Software AG – Sustainable Growth

Financial/Economic Crisis

January 10, 2012 | 5

By Business Line

By Segment

377

282

146

Business Process Excellence

Enterprise Transaction Systems

IDS Scheer Consulting

204

281

316

License

Maintenance

Consulting & Services

Total revenue

€ 804m

(9m 2011)

Revenue Split (I)

January 10, 2012 | 6

21%

22% 57%

Public Sector

Financial Sector

14 other Sectors (e.g. IT,Energy, Manufacturing)

Product revenue

€ 485m

(9m 2011)

Product Revenue by Region

Americas

EMEA (excl. Germany)

Germany

Asia Pacific

46%

9%

18%

27%

BRICS

10%

PIIGS

4%

Product Revenue by Industry

Revenue Split (II)

January 10, 2012 | 7

ca. 50% OF TOTAL REVENUE IS „RECURRING“

(Revenue split based on 9m 2011)

Many projects are

follow-ups

ca. 60% OF PROFIT IS „RECURRING“

> 90% of maintenance

revenue is “recurring“

(renewals of contracts)

> 75% OF PRODUCT REVENUE IS „RECURRING“

ca. 60% of license

revenue is “recurring“

(upgrades of existing

installations) 25%

License

35%

Maintenance

40%

Service

Robust Business Model-

Limited Risk to Economic Downturns

January 10, 2012 | 8

15%

EBIT-

Margin

25%

20%

+5% +2.5% +0% -2.5% -5%

Total Revenue

MARGIN RANGE

Revenue base 2010;

at constant currency

26%

+0% -7.5% -15%

License Revenue Assumption: stable development

of maintenance and service revenue

EBIT-Margin Sensitivity (12m rolling)

January 10, 2012 | 9

29%

33%

38%

Service

License

Maintenance

Modernizing, automating and integrating business (SOA)

ARIS: integrated solution portfolio for strategy, design,

implementation and controlling of processes

Market share: 12% ESB / 9% BPM

Market growth perspective (CAGR 10% + p.a.)

Technology leader (Gartner, Forrester)

Worldwide biggest independent specialized vendor of

Business Process Excellence (SOA, BPM, BPA/BPI)

0

100

200

300

400

500

2004 2005 2006 2007 2008 2009 2010

Product revenue growth: mid-term double digit

Acquisitions: webMethods Inc., USA, in 2007

IDS Scheer AG, Germany, in 2009

Segment margin (incl. R&D) 9m 2011: 28%

Average deal size Q3 2011 (deals > € 100k): € 460k

Growth driver: deal size, market, portfolio

in €m

Revenue split by segment Revenue development

Business characteristics Financials

9m 2011

(€ 377m)

*2010: transfer of ARIS related revenues into BPE segment

*

Business Process Excellence - Growth Driver

January 10, 2012 | 10

SOFTWARE

Manufacturing

Healthcare

Energy

Public

Finance

2000 / 2010

2010 / 2020+

1970 / 1990

MIDDLEWARE

Data

Mgmt.

Colla-

boration SOA-Gov. ESB

SEARCH ANALYTICS APPS

…

SYSTEMS / NETWORKS

CRM, HR,

etc. Ind. SW.

Adabas

AUTOMATED PROCESSES

Event Management Rules

ERP

The Agility Layer: Build on Heritage and Adjacent Innovation

January 10, 2012 | 11

What our Solutions do…

ARIS • Transparent logistic key figures

• Fast problem identification (early-warning

system)

webMethods

(SOA, BPM)

• Create a new field-service portal (work-

order management system)

• Save 10 minutes per tech ($ 4m productivity

gains a year) with a ramp-up time of 2

month

webMethods • Integration project after an acquisition

• Roll out of an integrated transportation

network

• 2 weeks timeframe

webMethods,

ARIS, Adabas,

Natural

• Implement multiple customer interfaces for

web access

• Integrate business logic into web service

January 10, 2012 | 12

How to make our customers a “crisis champion”?

What is required?

• Flexible organizational structure

• KPI analysis

• Cost reduction

• Risk monitoring & business

transparency

• Solid finance structure

• Efficiency & performance gains

• Increase market share (M&A)

• Sustainable customer relationship

• Ongoing product development

What we offer…

• Process optimization, fast

implementation (ROI), low TCO

• Real-time KPI monitoring

• Reliable and consistent data

quality

• Harmonized IT landscape

• Analysing and event driven

solutions

• Support efficient collaboration

• Integration process platform

January 10, 2012 | 13

Oracle

27%

Oracle

12%

Pega-systems

10%

IBM

29%

Adobe

11%

Software AG

9%

2010

€ 1.6bn

Other

24%

Fujitsu

5%

2010

€ 1.6bn

IBM

26%

Software AG

12%

Microsoft

14%

Tibco

10%

Business Process Management Suite Enterprise Service Bus Suite

Other

11%

Source: Gartner, Inc., Market Share: All Software Markets, Worldwide, 2010, Colleen Graham et al, 30 March 2011

Market Share in Main Markets: BPM and ESB

January 10, 2012 | 14

Software AG’s Technology Leadership

Enterprise Service Bus (2011) SOA Governance Technologies (2011)

Source: The Forrester Wave™: Enterprise Service Bus, Q2 2011, Forrester Research, Inc., April 25, 2011

Source: Gartner, Inc., Magic Quadrant for SOA Governance Technologies, Paolo Malinverno et al, October 17, 2011.

Forrester Wave™

Gartner

January 10, 2012 | 15

31%

51%

18%

Service License

Maintenance

Revenue split by segment Revenue development

0

100

200

300

400

2004 2005 2006 2007 2008 2009 2010

Financials

Highly profitable cash cow business

Annual maintenance renewal rate: ~ 95%

Average deal size Q3 2011 (deals > € 100k): € 827k

Segment margin (incl. R&D) 9m 2011: 56%

in €m

High performance data base (Adabas)

Rapid business application development (Natural)

Products are mission-critical for 70% of our customers

Mature market and long-term customer base

High margins and strong recurring cash flow

Business characteristics

9m 2011

(€ 282m)

Enterprise Transaction Systems - Stable Cash Flows

January 10, 2012 | 16

Service/

Consulting

89%

Huge Consulting expertise: modular portfolio that can

be tailored to unique requirements

Access to a large SAP customers

Based on enterprise knowledge, we offer a

comprehensive service portfolio branded as SAP

Managed Services

Acquisition of IDS Scheer, Germany, in 2009

Revenue driver 2010: utilization and cross selling

External Products: additional license for third party

products

Successful financial turn around in Q3 2011

Margin increase within the next quarters

Segment margin (incl. R&D) Q3 2011: 8%

Revenue split by segment* Revenue development**

Business Characteristics Financials

0

100

200

300

2009 2010

**2010: ARIS revenues are transfered to BPE segment

in €m

** *

*First consolidation August 2009

89%

Service

3% License

8% Maintenance

9m 2011

(€ 146m)

IDS Scheer Consulting

January 10, 2012 | 17

Strategy Takes Off – Dynamic Revenue…

Business Process Excellence

Enterprise Transaction Systems

0

100

200

300

400

500

600

700

800

900

1.000

2006 2007 2008 2009 2010

74%

26%

46% 52% 56% 62%

38%

44% 48%

54%

2011 ff

Segment-Revenue

(in% / €m)

Business model will move towards dynamic growth business.

January 10, 2012 | 18

186 210 216 214

242

-25

5

61 83

144

-50

0

50

100

150

200

250

300

350

400

450

2006 2007 2008 2009 2010 9m 2011

… and Income Growth

Business Process Excellence

Enterprise Transaction Systems

Segment Result

(in €m)

2011 ff

Thank you!

Please contact:

Investor Relations

Uhlandstrasse 12

64297 Darmstadt

Germany

phone: +49 (0) 6151 / 92- 3046

fax: +49 (0) 6151 / 92- 1933

web: softwareag.com

e-mail: investor.relations@softwareag.com