QUARTERLY STATEMENT Q1

Quarterly Statement Q1|2020

A solid performance against a globally uncertain backdrop

Total Revenue and EBITA (non-IFRS) ahead of market expectations Continued Helix strategy momentum with subscription and SaaS bookings growth of 37 percent

Total product revenue at €160.9 million, up 4 percent year-on-year (YoY); Group license revenue at €46.7 million, up 9 percent YoY.
Adabas & Natural: an exceptional first quarter with YoY revenue growth of 5 percent and YoY bookings growth of 47 percent.
Digital Business Platform (DBP) incl. Cloud & IoT: YoY revenue growth of 3 percent and YoY bookings growth of 19 percent.
Cloud & IoT: performance significantly ahead of expectations with YoY revenue growth of 60 percent and YoY bookings growth of 65 percent.
Year Two of our Helix transformation is showing continued momentum, with subscription and SaaS bookings up 37 percent YoY in DBP and Subscription and SaaS bookings share increased to 69 percent.
Taken active steps to address and mitigate for the COVID-19 pandemic, including swift action to ensure employee welfare and continued service delivery, in addition to several measures to support customers through access to key products.
Significant financial stability and liquidity, with €510.0 million in cash reserves and an Annual Recurring Revenue base of €487.8 million.
FY 2020 guidance adjusted for DBP business lines, allowing for expected potential COVID-19 impact. Medium-Term ambitions for 2023—including achieving €1 billion in revenue and expanding operating margin to a 25 to 30 percent range—unchanged.

Leading Indicators

Bookings DBP incl. Cloud & IoT: €58.1 million, up 19 percent
Bookings DBP Cloud & IoT: €23.5 million, up 65 percent
Annual Recurring Revenue: €487.8 million, up 8 percent

Revenue

Product revenue: €160.9 million
License revenue: €46.7 million
Total revenue: €207.0 million

Segments

Digital Business Platform: €103.5 million in revenue and segment margin at 12.9 percent
Adabas & Natural: €57.5 million in revenue and segment margin at 64.6 percent
Professional Services1: €46.0 million in revenue and segment margin at 5.1 percent

Earnings

Operating EBITA (non-IFRS): €39.7 million
Operating profit margin (non-IFRS): 19.2 percent
Earnings per share2 (EPS, non-IFRS): €0.38

Unless otherwise stated, all figures are IFRS-conform, increases at constant currency and rounded.

¹ Consulting until 2018; realigned for solution implementation in cooperation with customers and partners as of 2019

² Based on weighted average shares outstanding (basic); Q1 2020: 74.0m

Quarterly Statement Q1 | 2020 Table of Contents

Management's Assessment of First-Quarter Results	4
Business Line Development	5
Total Revenue, Bookings and Earnings Development	6
Employees	6
2020 Outlook	6
Key Figures	7
Consolidated Income Statement	8
Consolidated Balance Sheet	9
Consolidated Statement of Cash Flows	11
Segment Report	12
DBP Segment with Revenue Split	13
Statement of Comprehensive Income	14
Safe Harbor Statement	15

Management's Assessment of First-Quarter Results

Q1 2020 marks the start of the second year of our Helix transformation and three months of further strategic momentum for our Company. The quarterly results represent a solid performance against a globally uncertain backdrop, with total revenue and EBITA (non-IFRS) both ahead of market expectations and our Annual Recurring Revenue base now close to €500 million.

Toward the end of the quarter, the COVID-19 pandemic began to make its impact felt on our business. We moved quickly to protect our people, ensure frictionless continuity in our operations and support our customers. We have taken careful steps to requalify our pipeline, which underpins our confidence in delivering a solid H1 performance. We have also taken prudent steps to revise elements of our FY 2020 guidance. We now expect slower than anticipated growth in 2020 for our two DBP revenue lines, but FY 2020 guidance for A&N and Non-IFRS EBITA operating margin remains unchanged. We also continue to support our 2023 medium term ambitions.

For the first quarter, Group revenue was €207.0 million (Q1 2019: €201.4 million): a rise of 2 percent YoY. Total product revenue growth (licenses + maintenance + SaaS) was up 4 percent at €160.9 million. Total license revenue increased 9 percent to €46.7 million (Q1 2019: €42.6 million) while Group maintenance revenue was flat at €107.3 million (Q1 2019: €107.1 million). Q1 Group EBIT was ahead of consensus at €28.7 million (Q1 2019: €42.2 million) but lower YoY as a consequence of planned strategic investment. Non-IFRS EBITA margin was 19.2 percent and non-IFRS operating EBITA was €39.7 million (Q1 2019: €51.6 million).

Adabas & Natural (A&N) achieved an exceptional start to the year, delivering 47 percent growth in bookings despite tough YoY comparatives. This performance was driven by a major win with a US Government Agency and is a sign of the continuing relevance and value of A&N's product set, which in the first quarter became available on Microsoft's Azure Marketplace.

Our Digital Business Platform (DBP) excluding Cloud & IoT saw, toward the end of the quarter, a number of EMEA deals slip into Q2 as a result of the economic uncertainty caused by COVID-19. Despite this, we saw positive developments in North America, which significantly exceeded our Q1 targets and saw DBP growth of more than 20 percent YoY. DBP delivered bookings growth of 1 percent and revenue declined 3 percent to €88.1 million compared to €90.5 million in Q1 2019.

Cloud & IoT delivered significantly ahead of our guidance expectations with strong bookings growth of 65 percent. We are particularly pleased to have delivered on the first set of key implementation milestones for our major recent new IoT customer, Schindler. Business line revenue increased by 60 percent to €15.4 million compared to €9.5 million in Q1 2019.

Taken together, DBP including Cloud & IoT total revenue increased 3 percent YoY. The true leading indicator of our progress is the step-change we have achieved in our shift to subscription. At the end of Q1, 69 percent of all DBP bookings were subscription or SaaS based compared to 63 percent one year ago. This is strong momentum in our strategy to improve the quality and predictability of our earnings over time.

This second year of our Helix transformation is focused on driving our momentum forward. COVID-19 may have some impact on our visibility for H2, but our strategy and opportunity have not changed. We are executing against five strategic focus areas—Sales, Subscription, Partnerships, Culture, Marketing—and prioritizing investment in those areas that can deliver the greatest commercial impact.

Our business transformation is underpinned by cultural transformation. Investing in our Culture remains of paramount importance. Our CHRO, Dr Elke Frank, is helping to rewire our company for growth by retaining key talent, enabling our leaders to drive change, and securing new talent to augment our strong team. In the first quarter we have brought several new leaders in to our global organization from technology peers such as Salesforce, Axway Inc., Apigee, and Tibco.

We saw several highlights in our first quarter Sales performance, most notably in our continued success at winning competitively in the market. In Q1 we added 56 new customers to our base, including Armani, Golden Goose and Quest Diagnostics: each of which were secured as competitive wins. Alongside the achievement of targets by all our regional teams this quarter gives us confidence that our 2019 Go-To-Market (GTM) changes are delivering impact.

Our shift to subscription, which as noted above gathered significant pace in Q1, has served to further strengthen our financial position at a challenging economic time. Software AG is now generating €488 million of Annual Recurring Revenue.

We continue to deepen and derive value from our existing Partnerships in addition to securing new ones. In the first quarter, PwC became a new member of the ADAMOS network and we struck a new partnership with a major IT service provider covering IoT, Analytics and Integration. We were also pleased to expand our strategic partnership with Amazon Web Services to now encompass joint sales and GTM activities.

The efforts of our Marketing team are driving meaningful sales success. We have seen a 43 percent YoY increase in Marketing Qualified Leads during Q1 and a 20 percent YoY increase in visitors to our web pages. In light of the current COVID-19 situation, the team has well-developed plans to make our annual International User Groups conference fully virtual for 2020.

As we move forward in to the second quarter of the year, we believe we are well positioned to manage our business through the current challenge. We have a strong financial footing with over €500 million in available cash and €200m further headroom in credit facilities. Our revenue exposure to the most impacted areas is low; our investments are targeted; and we are actively managing our cost base.

We cannot forget that the COVID-19 pandemic has had a terrible human cost. It has, however, undeniably changed the way many organizations work. From this change, there is no going back. The transformation markets we target such as Hybrid Integration Platform market set to reach \$18 billion by 20221 and the IoT Platform market set to reach \$25.6 billion by 20232—are not going to go away.

The imperative for companies to transform is now stronger than ever. We believe Software AG continues to have the best products and the right operational approach to execute on those transformations, as they happen.

"During Q1, Software AG performed well as the momentum building in our Helix transformation showed through in our results. To-date, our business has proven resilient in the face of the Covid-19 pandemic. We have moved fast to support our people, listened carefully to our customers, and reacted quickly to meet their needs. Our mission critical products, limited exposure to the most affected industries, and the continued growth in Q1 of our recurring revenue stream, driven by our transformation, give us some resilience. This growth, enhanced by further competitive customer wins, has strengthened our robust financial position and our ability to manage through the period. It remains impossible to predict how long today's macroeconomic uncertainty will last. However, IT demand will remain strong and we are well positioned to benefit when market conditions recover."—Sanjay Brahmawar, CEO of Software AG

Business Line Development

Software AG's Adabas & Natural (A&N) delivered an exceptional performance in the first quarter, generating revenues of €57.5 million (Q1 2019: €54.7 million) representing YoY revenue growth of 5 percent. This performance is a sign of the continuing relevance and value of A&N's product set, which in the first quarter became available on Microsoft's Azure Marketplace. A&N license sales increased by 20 percent YoY to €21.5 million (Q1 2019: €17.8 million). A&N maintenance revenues totalled €35.9 million in the first quarter: a decrease YoY of 2 percent (Q1 2019: €36.8 million). Bookings in this segment grew by 47 percent YoY.

Software AG's Digital Business Platform (DBP) excluding Cloud & IoT saw a YoY revenue decline of 3 percent to €88.1 million (Q1 2019: €90.5 million), a consequence of a number of DBP deals slipping in to the second quarter in Q1's final weeks. License revenues declined 13 percent YoY to €18.6 million (Q1 2019: €21.7 million. Bookings in this segment grew by 1 percent YoY.

The Company's Cloud & IoT business performed significantly ahead of expectations, delivering YoY revenue growth of 60 percent to €15.4 million (Q1 2019: €9.5 million). Bookings growth in this business line was strong at 65 percent YoY.

Professional Services revenue was €45.0 million (Q1 2019: €46.7 million) in Q1 2020.

¹ Gartner Inc.

² McKinsey

Quarterly Statement Q1 | 2020 Total Revenue, Bookings and Earnings Development Employees 2020 Outlook

Total Revenue, Bookings and Earnings Development

In the quarter under review, Software AG recorded €207.0 million (Q1 2019: €201.4 million) in total revenue. Group maintenance revenue was flat at €107.3 million (Q1 2019: €107.1 million), while Group license revenue grew by 9 percent to €46.7 million (Q1 2019: €42.6 million). Software AG's total product revenue for the quarter (constituting licenses + maintenance + SaaS) amounted to €160.9 million (Q1 2019: €154.5 million): a growth rate of 4 percent.

Software AG uses the metric 'Product Bookings' as a leading indicator to better reflect business progress and the pace of its Helix transformation. In the first quarter, Software AG's Adabas & Natural (A&N) business line generated year-on-year bookings growth of 47 percent. DBP including Cloud & IoT business line generated year-on-year bookings growth of 19 percent. In the first quarter, 69 percent of all bookings within DBP were subscription and SaaS based (Q1 2019: 55 percent).

The Company's earnings before interest and taxes (EBIT) performance was ahead of market consensus at €28.7 million (Q1 2019: €42.2 million) for the first quarter. Software AG's operating EBITA (non-IFRS) amounted to €39.7 million (Q1 2019: €51.6 million). The year-on-year decline in both values is a result of planned investment in Software AG's Helix transformation. The respective operating margin (EBITA, non-IFRS) was 19.2 percent (Q1 2019: 25.6 percent).

Employees

As of March 31, 2020, Software AG had 5,005 (March 31, 2019: 4,737) employees worldwide (full-time equivalents). Of that total, 1,940 (March 31, 2019: 1,843) worked in Professional Services, 1,434 (March 31, 2019: 1,339) in Research and Development, 967 (March 31, 2019: 936) in Sales and Marketing and 664 (March 31, 2019: 619) in Administration.

2020 Outlook

COVID-19 began to impact our business at the end of Q1. Software AG remains confident in its ability to deliver a solid first half performance, however current macro-economic uncertainty reduces visibility in to the second half. The predictability and timing of deal closures has become more uncertain, notably for DBP and IoT, which have a greater reliance on new customer acquisition. Accordingly, the Company now expects slower than anticipated growth for its two DBP revenue lines but maintains its outlook for A&N and for Non-IFRS EBITA operating margin. Over the medium-term, demand for digitization should intensify as a result of the likely lasting changes COVID-19 has caused within businesses and their operating structures. Software AG therefore confirms its 2023 ambitions, most notably to reach €1 billion in revenue and expand operating margin to a 25 to 30 percent range.

The table below shows the full forecast for the 2020 fiscal year.

Outlook for Fiscal Year 2020

	FY 2019 Results per Dec 31, 2019 in € mn	FY 2020 Outlook as of Jan. 29, 2020 as %1	FY 2020 Outlook as of April 23, 2020 as %1
DBP excl. Cloud & IoT product bookings	241.1	+10% to +15%1	+0% to +10%1
DBP Cloud & IoT product bookings	65.9	+40% to +60%1	+20% to +40%1
A&N product bookings	100.8	–3% to +3%1	unchanged
Operating margin (EBITA, non-IFRS)2	29.2%	20% to 22%	unchanged

¹ at constant currency

² adjusted for non-operating factors (see non-IFRS earnings definition in the 2019 annual report on p. 50f)

Key Figures

	As of the First Quarter and as of March 31, 2020 and December 31, 2019 (IFRS, unaudited)

in € millions (unless otherwise stated)	Q1 2020 (as stated)	Q1 2019 (as stated)	+/– as %	+/– as % acc1
Leading Indicators
Bookings Group2	90.1	70.4	28%	28%
Thereof Subscription and SaaS2	41.5	30.7	35%	37%
Bookings DBP (incl. Cloud & IoT)2	58.1	48.9	19%	19%
Bookings Adabas & Natural2	32.0	21.4	49%	47%
ARR Group3 (as of March 31)	487.8	456.9	7%	8%
ARR DBP (incl. Cloud & IoT)3	341.0	308.6	11%	11%
P&L
Revenue Group	207.0	201.4	3%	2%
Product Revenue	160.9	154.5	4%	4%
Thereof DBP (incl. Cloud & IoT)	103.5	100.0	4%	3%
Thereof Adabas & Natural	57.5	54.7	5%	5%
Professional Services Revenue	46.0	46.7	–2%	–3%
Operating EBITA (non-IFRS)	39.7	51.6	–23%
as % of revenue	19.2%	25.6%
DBP segment earnings	13.4	17.5	–23%
Segment margin	12.9%	17.5%
A&N segment earnings	37.2	39.3	–5%
Segment margin	64.6%	71.7%
Net income (non-IFRS)	27.9	36.3	–23%
Earnings per share (non-IFRS)4	€0.38	€0.49	–23%
Cash Flow
Operating cash flow	61.5	60.0	2%
Free cash flow	52.0	54.5	–5%
Free cash flow per share	€0.70	€0.74	–5%
Balance sheet	Mar. 31, 2020	Dec. 31, 2019	+/– as %
Total assets	2,094.9	2,116.1	–1%
Cash and cash equivalents	510.0	513.6	–1%
Net cash	265.8	217.0	22%
Employees
Number of Employees (FTE)	5,005	4,948	1%
Thereof R&D	1,434	1,419	1%
Thereof Germany	1,280	1,278	0%

¹ acc = at constant currency

² Bookings according to 2020 definition

³ Annual recurring revenue

⁴ Based on weighted average shares outstanding (basic) Q1 2020: 74.0 mn/Q1 2019: 74.0 mn

Because the figures in this report are stated in accordance with commercial rounding principles, totals and percentages may not always be exact.

Consolidated Income Statement

in € thousands	Q1 2020	Q1 2019	+/– as %
Licenses	46,689	42,579	10%
Maintenance	107,308	107,092	0%
SaaS	6,923	4,866	42%
Professional Services	45,988	46,707	–2%
Other	138	173	–20%
Total revenue	207,046	201,417	3%
Costs of sales	–55,289	–49,459	12%
Gross profit	151,757	151,958	0%

Research and development expenses	–36,522	–33,301	10%
Sales, marketing and distribution expenses	–65,950	–60,811	8%
General and administrative expenses	–21,415	–17,620	22%
Other income	9,206	4,036	128%
Other expense	–8,341	–2,053	306%
Other taxes	–1,171	–1,461	–20%
Operating profit	27,564	40,748	–32%
Finance income	2,534	2,857	–11%
Finance cost	–1,383	–1,464	–6%
Finance income, net	1,151	1,393	–17%
Earnings before income taxes	28,715	42,141	–32%
Income taxes	–8,524	–12,471	–32%
Net income	20,191	29,670	–32%
Thereof attributable to shareholders of Software AG	20,157	29,567	–32%
Thereof attributable to non-controlling interests	34	103

Earnings per share (€, basic)	0.27	0.40	–33%
Earnings per share (€, diluted)	0.27	0.40	–33%
Weighted average number of shares outstanding (basic)	73,979,889	73,979,889	—
Weighted average number of shares outstanding (diluted)	73,979,889	73,981,320	—

Consolidated Balance Sheet

As of March 31, 2020 (IFRS, unaudited)

Assets

in € thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets
Assets held for sale	4,795	4,795
Cash and cash equivalents	509,991	513,632
Other financial assets	4,820	5,720
Trade and other receivables	187,169	206,596
Other non-financial assets	30,998	26,299
Income tax receivables	17,219	18,943
	754,992	775,985
Non-current assets
Intangible assets	115,080	116,601
Goodwill	986,912	980,088
Property, plant and equipment	101,227	103,977
Other financial assets	17,428	17,078
Trade and other receivables	92,623	96,544
Other non-financial assets	2,816	3,024
Income tax receivables	10,938	10,835
Deferred tax receivables	12,857	11,955
	1,339,881	1,340,102

Total Assets	2,094,873	2,116,087

Equity and Liabilities

Current liabilities Liabilities from assets held for sale 5,092 5,092 Financial liabilities 43,085 96,389 Trade and other payables 32,918 35,793 Other non-financial liabilities 90,655 116,367 Other provisions 37,473 38,099 Income tax liabilities 39,694 35,569 Contract liabilities/Deferred income 183,727 140,893 432,644 468,202 Non-current liabilities Financial liabilities 201,134 200,225 Trade and other payables 187 90 Other non-financial liabilities 955 1,343 Other provisions 7,206 7,360 Provisions for pensions and similar obligations 47,417 47,963 Income tax liabilities 2,710 2,643 Deferred tax liabilities 6,735 10,594 Contract liabilities/Deferred income 19,598 20,212 285,942 290,430 Equity Share capital 74,000 74,000 Capital reserves 22,580 22,580 Retained earnings 1,322,396 1,302,257 Other reserves –42,303 –41,304 Treasury shares –757 –757 Attributable to shareholders of Software AG 1,375,916 1,356,776 Non-controlling interests 371 679 1,376,287 1,357,455 Total Equity and Liabilities 2,094,873 2,116,087	in € thousands	Mar. 31, 2020	Dec. 31, 2019

Consolidated Statement of Cash Flows

in € thousands	Q1 2020	Q1 2019
Net income	20,191	29,670
Income taxes	8,524	12,471
Net financial income/expense	–1,151	–1,394
Amortization/depreciation of non-current assets	10,309	11,588
Payments for the settlement of share based payment rights with a choice of settlement	0	0
Other non-cash income/expense	104	41
Changes in receivables and other assets	17,675	37,126
Changes in payables and other liabilities	12,048	–17,533
Income taxes paid/received	–7,471	–13,482
Interest paid	–1,305	–1,382
Interest received	2,535	2,857
Net cash flow from operating activities	61,459	59,962
Proceeds from the sale of property, plant and equipment/intangible assets	611	162
Purchase of property, plant and equipment/intangible assets	–3,436	–2,444
Proceeds from the sale of non-current financial assets	0	171
Purchase of non-current financial assets	–2,658	–116
Proceeds from the sale of current financial assets	172	70
Purchase of current financial assets	–268	–569
Payments for acquisitions, net	0	–5,000
Net cash flow from investing activities	–5,579	–7,726
Use of treasury shares	0	0
Dividends paid	–342	–320
Proceeds/payments for current financial liabilities	–52,163	–38,241
Repayments of lease liabilities	–4,011	–3,240
New non-current financial liabilities	0	0
Repayment of non-current financial liabilities	–1	0
Net cash flow from financing activities	–56,517	–41,801
Change in cash and cash equivalents	–637	10,435
Change in cash and cash equivalents from currency translation	–3,004	10,734
Net change in cash and cash equivalents	–3,641	21,169
Cash and cash equivalents at beginning of period	513,632	462,362
Cash and cash equivalents at end of period	509,991	483,531
Free cash flow	51,965	54,495

Segment Report

	DBP (incl. Cloud & IoT)		A&N				Professional Services			Reconciliation		Total
	Q1 2020	Q1 2020	Q1 2019	Q1 2020	Q1 2020	Q1 2019	Q1 2020	Q1 2020	Q1 2019	Q1 2020	Q1 2019	Q1 2020	Q1 2020	Q1 2019
in € thousands	as stated	at constant currency	as stated	as stated	at constant currency	as stated	as stated	at constant currency	as stated	as stated	as stated	as stated	at constant currency	as stated
Licenses	25,144	25,200	24,802	21,545	21,345	17,777						46,689	46,545	42,579
Maintenance	71,446	70,857	70,300	35,862	35,911	36,792						107,308	106,768	107,092
SaaS	6,923	6,880	4,866	0	0	0						6,923	6,880	4,866
Product revenue	103,513	102,937	99,968	57,407	57,256	54,569	0	0	0	0	0	160,920	160,193	154,537
Professional Services	0	0	0	0	0	0	45,988	45,395	46,707			45,988	45,395	46,707
Other	0	0	0	138	138	173	0	0	0			138	138	173
Total revenue	103,513	102,937	99,968	57,545	57,394	54,742	45,988	45,395	46,707	0	0	207,046	205,726	201,417
Cost of sales	–11,475	–11,443	–9,336	–2,566	–2,572	–2,203	–39,237	–38,689	–35,710	–2,011	–2,210	–55,289		–49,459
Gross profit	92,038	91,494	90,632	54,979	54,822	52,539	6,751	6,706	10,997	–2,011	–2,210	151,757		151,958
Sales, marketing and distribution expenses	–50,654	–50,312	–45,791	–9,278	–9,269	–7,365	–4,390	–4,336	–4,270	–1,628	–3,385	–65,950		–60,811
Segment contribution	41,384	41,182	44,841	45,701	45,553	45,174	2,361	2,370	6,727	–3,639	–5,595	85,807		91,147
Research and development expenses	–27,981	–27,425	–27,385	–8,541	–8,448	–5,916	0	0	0	0	0	–36,522		–33,301
Segment earnings	13,403	13,757	17,456	37,160	37,105	39,258	2,361	2,370	6,727	–3,639	–5,595	49,285		57,846
General and administrative expenses												–21,415		–17,620
Other income												9,206		4,036
Other expense												–8,341		–2,053
Other taxes												–1,171		–1,461
Operating profit												27,564		40,748
Finance income												2,534		2,857
Finance cost												–1,383		–1,464
Finance income, net												1,151		1,393
Earnings before income taxes												28,715		42,141
Income taxes												–8,524		–12,471
Net income												20,191		29,670

DBP Segment with Revenue Split

Q1 2020	Q1 2020	Q1 2019	Q1 2020
				Q1 2020	Q1 2019	Q1 2020	Q1 2020	Q1 2019
	at constant currency	as stated	as stated	at constant currency	as stated	as stated	at constant currency	as stated
6,498	6,334	3,059	18,646	18,866	21,743	25,144	25,200	24,802
2,014	1,994	1,575	69,432	68,863	68,725	71,446	70,857	70,300
6,923	6,880	4,866	0	0	0	6,923	6,880	4,866
15,435	15,208	9,500	88,078	87,729	90,468	103,513	102,937	99,968
0	0	0	0	0	0	0	0	0
0	0	0	0	0	0	0	0	0
15,435	15,208	9,500	88,078	87,729	90,468	103,513	102,937	99,968
						–11,475	–11,443	–9,336
						92,038	91,494	90,632
						–50,654	–50,312	–45,791
						41,384	41,182	44,841
						–27,981	–27,425	–27,385
						13,403	13,757	17,456
	as stated

Statement of Comprehensive Income

in € thousands	Q1 2020	Q1 2019
Net income	20,157	29,670
Currency translation differences from foreign operations	–1,964	25,807
Net profit/(loss) from cash flow hedges	127	50
Currency translation gain/loss from net investments in foreign operations	0	747
Items to be reclassified to the income statement if certain conditions are met	–1,837	26,604
Net profit/(loss) from equity instruments designated to measurement at fair value through other comprehensive income	–286	–58
Net actuarial gain/loss on pension obligations	1,124	–880
Items not to be reclassified to the income statement	838	–938
Other comprehensive income	–999	25,666
Total comprehensive income	19,158	55,336
Thereof attributable to shareholders of Software AG	19,124	55,233
Thereof attributable to non-controlling interests	34	103

Safe Harbor Statement

This document includes forward-looking statements based on the 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.

This document constitutes neither an offer nor recommendation to subscribe or buy in any other way securities of Software AG or any of the companies that are members of the Group at present or in the future, nor does it form part of such an offer and it should not be understood as such. This presentation does not constitute an offer of sale of securities in the United States of America. Securities may not be offered or sold in the United States of America without registration or exemption from registration in accordance with the U.S. Securities' Act of 1933 in its currently valid form.

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About Software AG

We reimagine integration, spark business transformation and enable fast innovation on the Internet of Things so you can pioneer differentiating business models. We give you the freedom to connect and integrate any technology—from app to edge. We help you free data from silos so it's shareable, usable and powerful—enabling you to make the best decisions and unlock entirely new possibilities for growth.

Learn more about Software AG at www.softwareag.com.

Contact

Software AG Investor Relations Uhlandstraße 12 64297 Darmstadt Germany

Tel. +49 6151 92-1900 Fax +49 6151 9234-1900 [email protected] SoftwareAG.com

AI Terminal

Software AG

406_10-q_2020-04-30_b7ff43b6-8293-47ee-8756-a3d01e9228d1.pdf

QUARTERLY STATEMENT Q1