Ad-hoc | 19 January 2016 00:46
Software AG / Key word(s): Final Results/Forecast
19.01.2016 00:46
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AD HOC DISCLOSURE ACCORDING TO § 15 WPHG
Software AG: Preliminary Results for Q4 and full year 2015 - Outlook for
the fiscal year 2016
Darmstadt, January 19, 2016 - Software AG (Frankfurt TecDAX: SOW) released
preliminary results for the fourth quarter and full-year 2015
* Impact of Go-to-Market transformation drives improvements in all key
performance parameters
* License revenue for the Digital Business Platform up 23 percent in Q4
* Operating margin (EBITA non-IFRS) reached historic record in Q4 of 36
percent
* Highest Group maintenance revenue in company's history, 10 percent up
year-on-year
* Full-year operating earnings (EBITA non-IFRS) at EUR259.1 million
exceeded outlook 2015
* Outlook 2016: 5 - 10 percent digital business growth at constant currency
[If not stated otherwise, all figures rounded including potential currency
impacts.]
1. Preliminary key figures for the 4th quarter
Key Figures for Q4 2015 (IFRS, unaudited)
in EUR millions Q4/2015 Q4/2014 ∆ in %as stated
Total revenue 257.5 247.3 +4
Product revenue 205.6 195.0 +5
Maintenance revenue 102.6 96.4 +6
License revenue 103.0 98.6 +4
Digital Business
Platform 137.6 118.1 +17
as % of total revenue 53% 48%
DBP maintenance 63.6 57.9 +10
DBP licenses 74.0 60.2 +23
Adabas & Natural 68.2 77.0 -11
as % of total revenue 27% 31%
A&N maintenance 39.1 38.4 +2
A&N licenses 28.9 38.4 -25
Consulting 51.7 52.2 -1
as % of total revenue 20% 21%
Sales & marketing
expenses -71.3 -71.9 -1
Research & development
expenses -27.1 -28.1 -4
EBIT* 80.1 71.4 +12
as % of total revenue 31% 29%
Operating Earnings
(EBITA, non-IFRS)** 92.2 88.4 +4
as % of total revenue 36% 36%
* = consolidated net income + income tax + other tax + financial result
** = EBITA adjusted for reduction of acquisition-related product revenue by
purchase price allocation, other acquisition effects, share-based payment,
restructuring/severance payments and operating income of divested units
Software AG's total revenue in the quarter under review was four percent up
resulting in a growth in profitability of 12 percent. The company's profit
before interest and taxes EBIT in the fourth quarter was EUR80.1 million
(Q4 2014: EUR71.4 million) corresponding to an EBIT margin of 31.1 percent
in Q4 (Q4 2014: 28.9 percent).
The operating earnings (EBITA, non-IFRS) increased strongly due to a higher
product revenue, improved sales mix, higher efficiency and active cost
management. Software AG's operating earnings (EBITA, non-IFRS) increased to
EUR92.2 million (Q4 2014: EUR88.4 million) up four percent. Accordingly,
the operating earnings margin (non-IFRS) reached 35.8 percent (Q4 2015:
35.7 percent).
2. Preliminary Key Figures for FY 2015 (IFRS, unaudited)
EBIT in fiscal 2015 was EUR209.4 million (FY 2014: EUR176.0 million), an
increase of 19 percent. This corresponds to an EBIT margin of 24.0 percent
(FY 2014: 20.5 percent). The operating earnings (EBITA non-IFRS) rose to
EUR259.1 million (FY 2014: EUR239.3) and the operating earnings margin rose
to 29.7 percent (2014: 27.9 percent).
Key Figures for FY 2015 (IFRS, unaudited)
in EUR millions 2015 2014 ∆ in %as stated
Total revenue 873.1 857.8 +2
Product revenue 678.8 641.4 +6
Maintenance revenue 406.9 371.3 +10
Licenses revenue 271.9 270.1 +1
Digital Business
Platform 431.5 394.5 +9
as % of total revenue 49% 46%
DBP maintenance 248.0 215.7 +15
DBP licenses 183.5 178.9 +3
Adabas & Natural 248.0 245.3 +1
as % of total revenue 28% 29%
A&N maintenance 158.9 153.7 +3
A&N licenses 88.4 91.0 -3
Consulting 193.4 195.8 -1
as % of total revenue 22% 23%
Sales & marketing
expenses -268.0 -263.1 +2
Research & development
expenses -106.4 -109.1 -2
EBIT* 209.4 176.0 +19
as % of total revenue 24% 21%
Operating Earnings
(EBITA, non-IFRS) 259.1 239.3 +8
as % of total revenue 30% 28%
* = consolidated net income + income tax + other tax + financial result
** = EBITA adjusted for reduction of acquisition-related product revenue by
purchase price allocation, other acquisition effects, share-based payment,
restructuring/severance payments and operating income of divested units
3. Goals Achieved 2015
With the Q4 financial results, Software AG has achieved its 2015 revenue
goals, as announced on October 13, 2015. At con¬stant currency, the DBP
revenue grew by 2 percent, which is above the mid-point of the company's
guided corridor of between +0 and +3 percent. A&N at constant currency
represented a decrease of -5 percent for the total year, in-line with the
guided -4 to -6 percent corridor. With 29.7 percent, the operating earnings
margin (EBITA, non-IFRS) even exceeded the outlook of 28 to 29 percent.
4. Outlook 2016
Based on the increasing market relevance of the company's portfolio and the
further expected positive impacts of its Go-to-Market strategy, Software AG
is now targeting a cur¬rency-adjusted increase of DBP product revenue of
between +5 and +10 percent for 2016. For A&N, the Group expects
currency-adjusted sales to decline between -4 and -8 percent over the
previous year. Moreover, the company expects further improvement of its
operating profit margin (EBITA, non-IFRS) reaching 30 to 31 percent.
19.01.2016 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Software AG
Uhlandstraße 12
64297 Darmstadt
Germany
Phone: +49 (0)6151 92-1900
Fax:
E-mail: Investor.Relations@softwareag.com
Internet: www.softwareag.com
ISIN: DE0003304002
WKN: 330400
Indices: TecDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart
End of Announcement DGAP News-Service
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