31.01.2019 Software AG  DE000A2GS401

DGAP-Adhoc: Software AG adopts new strategic direction / Outlook 2019 / Medium term financial ambitions


 

DGAP-Ad-hoc: Software AG / Key word(s): Strategic Company Decision/Forecast
Software AG adopts new strategic direction / Outlook 2019 / Medium term financial ambitions

31-Jan-2019 / 00:55 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


Publication of insider information in accordance with Article 17 of Regulation (EU) No 596/2014

Software AG adopts new strategic direction / Outlook 2019 / Medium term financial ambitions


The Management Board of Software AG (MDAX, ISIN DE000A2GS401 / SOW) adopted the following resolutions:

1. New strategic direction (Project Helix)

The strategic reorientation has the goal of accelerating revenue growth while both achieving higher recurring revenue and maintaining high profitability. As part of this strategy, the product portfolio will be focused on growth segments and Sales and Marketing activities in core markets will be increased. For this purpose, EUR20 to EUR30 million in new net investment will be made in the new business model in 2019. Furthermore, in 2020, while the business volume will continue to grow, the licensing model will be changed in such a way that revenue will no longer be recognized immediately, but spread over several years ("Subscription").

2. Outlook 2019

In view of the above investments, the outlook for 2019 is as follows:

Outlook for Fiscal Year 2019    
  FY 2018
in EUR mn
FY 2019 Outlook
as of January 31, 2019 as %
DBP revenue 464.7 -
DBP excl. DBP Cloud & IoT 434.4 +3 to +71
DBP Cloud & IoT 30.3 +75 to +1251
A&N revenue 218.3 -5 to 01
Operating margin
(EBITA, non-IFRS)2
31.5% 28.0 to 30.0
     
1 at constant currency

2 adjusted for non-operating factors (see non-IFRS earnings definition in annual report 2017 from p. 46 onward)
 

3. Medium term financial ambitions

Whilst the product business will continue to grow, the change in the licensing model will, in 2020 (the first year of full application), have an effect on the reported operating EBITA margin (non-IFRS) compared to the previous year (2019) of no more than -2 percentage points.

From 2021 onwards, business growth should once again be reflected in sales and in a rising EBITA margin (non-IFRS) that is expected to reach more than 30% over the medium term. In order to be able to better assess the operational development of the company in 2020 and the following years, additional industry-standard metrics (Annual recurring revenue (ARR), bookings and operating cash flow) will be reported from 2019, in addition to the IFRS key figures.

These resolutions of the Management Board are subject to the approval of the Supervisory Board.

Darmstadt, 31.01.2019

The Management Board
Software AG, Uhlandstr. 12, 64297 Darmstadt



Contact:
Person making the notification:
Frederic Freichel
Manager Investor Relations

Email: [email protected]
Tel: +49 6151 92 1106

31-Jan-2019 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de


Language: English
Company: Software AG
Uhlandstraße 12
64297 Darmstadt
Germany
Phone: +49 (0)6151 92-1900
Fax: +49 (0)6151 92-34 1899
E-mail: [email protected]
Internet: www.softwareag.com
ISIN: DE000A2GS401
WKN: A2GS40
Indices: MDAX, TecDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange

 
End of Announcement DGAP News Service

771197  31-Jan-2019 CET/CEST

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Die wichtigsten Finanzdaten auf einen Blick
  2015 2016 2017 2018 2019 2020 2021e
Umsatzerlöse1 873,06 871,83 878,98 865,71 890,61 834,85 0,00
EBITDA1,2 258,83 257,18 259,61 256,62 255,49 170,37 0,00
EBITDA-Marge3 29,65 29,50 29,54 29,64 28,69 20,41 0,00
EBIT1,4 210,26 217,01 218,41 224,55 208,04 130,45 0,00
EBIT-Marge5 24,08 24,89 24,85 25,94 23,36 15,63 0,00
Jahresüberschuss1 139,61 140,35 140,60 165,20 155,32 130,45 0,00
Netto-Marge6 15,99 16,10 16,00 19,08 17,44 15,63 0,00
Cashflow1,7 185,44 203,70 189,39 195,06 172,04 112,45 0,00
Ergebnis je Aktie8 1,78 1,84 1,88 2,23 2,09 1,29 1,50
Dividende8 0,55 0,60 0,65 0,71 0,76 0,76 0,80
Quelle: boersengefluester.de und Firmenangaben

  Geschäftsbericht 2020 - Kostenfrei herunterladen.  
1 in Mio. Euro; 2 EBITDA = Ergebnis vor Zinsen, Steuern und Abschreibungen; 3 EBITDA in Relation zum Umsatz; 4 EBIT = Ergebnis vor Zinsen und Steuern; 5 EBIT in Relation zum Umsatz; 6 Jahresüberschuss (-fehlbetrag) in Relation zum Umsatz; 7 Cashflow aus der gewöhnlichen Geschäftstätigkeit; 8 in Euro; Quelle: boersengefluester.de

Wirtschaftsprüfer: BDO

INVESTOR-INFORMATIONEN
©boersengefluester.de
Software AG
WKN Kurs in € Einschätzung Börsenwert in Mio. €
A2GS40 41,300 Halten 3.056,20
KGV 2022e KGV 10Y-Ø BGFL-Ratio Shiller-KGV
19,21 18,83 1,02 23,09
KBV KCV KUV EV/EBITDA
2,43 27,18 3,66 16,97
Dividende '19 in € Dividende '20e in € Div.-Rendite '20e
in %
Hauptversammlung
0,76 0,76 1,84 12.05.2021
Q1-Zahlen Q2-Zahlen Q3-Zahlen Bilanz-PK
23.04.2021 21.07.2021 21.10.2021 22.03.2021
Abstand 60Tage-Linie Abstand 200Tage-Linie Performance YtD Performance 52 Wochen
-0,41% 9,74% 23,88% 13,65%
    
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Software , A2GS40 , SOW , XETR:SOW