Software AG: profit shrunk to 110 million euros – Echo-online

share buybacks, dividend policy, a new Supervisory Board: Classical themes of a general meeting. Rather unusual. Even the flight of the footballers of Darmstadt 98 is repeatedly referred to at the meeting of Software AG

DARMSTADT.

Shortly before ten clock in the VIP lounge of the Software AG (SAG) in Darmstadtium: Arnd, the wiry chief financial officer of Germany’s second largest software company, enters the room and shakes many hands. Fortunately, he is not talking about sophisticated database systems or the increasing free cash flow of the company, but mainly about the lilies. No wonder the subject is omnipresent in the city. How much would a rise the main sponsor of Software AG, however, he does not reveal. 2.6 million euros would get Paderborn, approximately 30 million of FC Bayern, outlined the avid triathlete, the two-class society of the First Bundesliga.

Representatives of small shareholders take later on the ball. Andreas Schmidt of the Protection of Investors (SDK) brings the approximately 300 shareholders laugh because he outs himself as a man who “in the context of the 1. FC Kaiserslautern” is moving. The Software AG products are according to his assessment, although erstligareif – but customers are also ready for it

A question like a forward pass to the answer can not be to ask Mr. Streibich long , “Who does not digitized, is a goner,” SAG chief cited a T-Systems manager, and takes a number of examples that document the success of the Darmstadt company. At Coca-Cola we have digitized thousands of business processes – so that the beverage giant could better respond to the changing consumer behavior and bring new products to market faster. Or ING Diba: The Dutch financial institution set on technology from Darmstadt to install a digital trade monitoring with the aim of analyzing important market data in real time. Or Ekurhuleni: The Metropolitan Municipality in South Africa offers Streibich According to management services to more than three million citizens. By working with SAG, the response time of the local administrative services had reduced by 70 percent.

Beautiful examples, although not convince everyone. Bernd Starkloff recalled that the Software AG gained in 2014 less. In addition, the Tec-DAX companies had to compete with industry giants such as IBM or Oracle. And Schmidt points out that the sketched Streibich digitalization boom in Silicon Valley or even in Ekurhuleni is indeed detectable, but not in Germany. Here there is no “smart city” and industrial 4.0 had been little more than a melodious promises.

The sales team must score

The hopes of Software AG as well as the small shareholders now rest in part to Eric Duffaut, since October, the board of the SAG and a so-called Chief Customer Officer responsible for worldwide sales, consulting services and marketing. Duffaut, previously worked for Oracle and also for Germany’s software champ SAP intended, the direct marketing as well as the expansion of the “partner ecosystem” force, so that the growth aspirations into reality. Less than ten percent of the German industrial companies have implemented the digital transformation process, says Streibich – “a large-Marktpoten potential for Software AG.”

In spite of to 110 (previous year: 134) million Euro shrunken profit Shareholders will receive a dividend of 50 cents per share – an increase of nine per cent and at the same time the eighth dividend increase in the last ten years as Zinnhardt emphasized. The total dividend payout thus amounts to 39.5 million euros. According to Schmidt, as well as by Detlef Kunath of the German protection combination for security possession (DSW) SAG could set yet a tooth here. Lieber, the company should restrict the purchase of own shares, even if this initially good for the share price. According Zinnhardt there on this issue different interests of shareholders. Foreign investors such as mutual fund companies Templeton or Fidelity applied without tax reasons the share buyback program more interesting than a rising dividend. Last SAG had collected 9.14 percent of its own shares. . As a result, the Software AG Foundation holds as its main shareholder now holds almost 32 percent of the Tec-DAX company

Zinnhardt referred Software AG as a “value containing investment”: High customer loyalty increase the profitable maintenance revenues to now 43 percent of total revenue, an equity ratio of around 55 percent, a high cash inflow – all speak for Darmstadt. Also Schmidt appears conciliatory at the end: both the lilies and Kaiserslautern should ascend to the first division.