Software AG

Quarterly Report • Apr 24, 2003

Software AG Interim Report 2003

1st Quarter 2003 April 24, 2003

Revenue Q1 2002/2003

Licensing Revenue by Product Group Q1 2002/2003

Revenue by Region Q1 2002/2003

Operating EBITA by Region Q1 2002/2003

Research & Development Expenses by Product Group

(in mio. euros)

Result Q1 2002/2003

	2 0 0 3	2 0 0 2
i O E B I T D A t p e r a n g	9 0	5 6
i i D t e e o p r c a n	2 2 -	2 7 -
O i E B I T A t p e a n g r	8 6	9 2
G d i l l o o w	5 5 -	5 5 -
i i l i F n a n c a n c o m e	1 0 +	0 6 +
i l O t t p e r a n g r e s u	2 3	2 0 -
f i I t t n c o m e r o m n v e s m e n s	0 0	9 3 +
i R t t e s c n g e p e n s e s r u u r x	8 2 3 -	1 1 3 -
f i b f P t t o e o e a r r x	2 1 5 -	0 4 -
T a e s x	8 1 1 +	6 1 +
i N t e n c o m e	9 7 -	2 4 -
i h ( i ) E a r n n g s p e r s a r e n e u r o	0 3 6 -	0 0 9 -

A t s s e s	h M 3 1 a r c , 2 0 0 3	D 3 1 e c , 2 0 0 2	i b i l i i L t a e s	h M 3 1 a r c , 2 0 0 3	D 3 1 e c 2 0 0 2
i d F A t x e s s e s	2 1 5 7	2 2 1 1	h h l d ' S a r e o e r s i t e q u y	2 1 6 9	2 1 4 5
i I t n v e n o r e s	5 7	6 4	i i P r o v s o n s	2 9 1 4	0 8 1 7
d i b l T a e e c e a e s r r v d h t t a n o e r a s s e s	1 2 5 2	1 3 2 6	i b i l i i k L B t t a e s o a n s	0 0	0 0
h d h C a s a n c a s i l t e q a e n s u v	8 0 9	7 5 4	h l i b i l i i O t t e r a e s	2 9 9	3 5 9
i d P r e p a e x p e n s e s	4 0 5	7 1	f d i D e e r r e n c o m e	9 6 3	8 1 7
l T t o a	6 8 0 4	0 8 4 4	l T t o a	6 8 0 4	0 8 4 4

Cash flow Q1 2002/2003

	Q 1 2 0 0 3	Q 1 2 0 0 2
N h d i / i d d b i t t e c a s s e n p o e o p e a n g u r v y r i i i t t a c v e s	1 1 5	1 2 1
h d i / i d d b i i N t t e c a s u s e n p r o v e y n v e s n g i i i t t a c e s v	2 0 -	5 6
f N h d i / i d d b i i t e c a s s e n p o e n a n c n g u r v y i i i t t a c v e s	2 9 -	2 7 0 -
h i h f d f h C t a n g e n c a s u n s r o m e x c a n g e r a e h i f t t t m o e m e n s c a n g e s n g o p s c e o v r u r u u r r , h f d c a s u n s	1 1 -	0 1
h i h d h i l N t t e c a n g e n c a s a n c a s e q u v a e n s	5 5	9 2 -
h d h i l f b C D 3 1 t a s a n c a s e q u v a e n s a s o e c e m e r	7 5 4	5 0 3
f C h d h i l h 3 1 t M a s a n c a s e q a e n s a s o a c u v r	8 0 9	1 1 4
i h f l h O t p e a n g c a s o p e s a e r w r r	0 4 2	0 4 4

10

Restructuring Program 2003

*) Full Time Equivalent

Cost-savings after restructuring

Headcount reduction

thereof in Germany thereof abroad

• Cost-savings in 2003
• One time restructuring expenses Q1 2003

55 – 60 mio. euros p.a.

ca. FTE* 300

ca. FTE* 240 ca. FTE* 60

25 - 30 mio. euros

23.8 mio. euros

Outlook

• No improvement of market situation in sight
• Product revenue same level as 2002 (net of currency effects)
• Maintenance revenue ensuring about 40% of total revenue
• Positive operating result (about the amount of 2002)
• Positive net income
• Positive operating cash flow