Software AG keeps dividend on track
Darmstadt, Germany, 3/17/2014
Software AG’s (FRA: SOW) Executive Board and Supervisory Board will propose at the Annual General Meeting on May 16, 2014 a dividend payment of €0.46 per share (prev. year €0.46) for fiscal year 2013. On the current basis of 78.9 million shares (prev. year 83.0 million) entitled to a dividend, the total payout would be around €36.3 million (prev. year €38.2 million). The payout ratio based on the average of free cash flow and group net income would increase to 25 percent (prev. year 23 percent).
Software AG’s strategy has been strongly focused on growth in the Business Process Excellence (BPE) business line since 2012. As a consequence, the company heavily invested in new products and the expansion of its sales teams. Additionally, the shareholders profited from the company’s share buyback program: Since February 2013, Software AG purchased 9.3 percent of its own shares for a total of €175.8 million. The Executive Board and the Supervisory Board want, however, to maintain continuity in its dividend payout and therefore recommend a dividend at the previous year’s level.
Software AG’s dividend policy is related to the long-term development of the company. The dividend is based on reported net income and free cash flow on one hand and the necessary financial requirements for further growth on the other. Software AG’s goal for the use of cash flow is not only to invest into growth, but also to share profitability with its shareholders through a stable dividend.
About Software AG
Software AG (Frankfurt TecDAX: SOW) helps organizations achieve their business objectives faster. The company’s big data, integration and business process technologies enable customers to drive operational efficiency, modernize their systems and optimize processes for smarter decisions and better service. Building on over 40 years of customer-centric innovation, the company is ranked as a “leader” in fourteen market categories, fueled by core product families Adabas-Natural, ARIS, Alfabet, Apama, Terracotta and webMethods. Software AG has more than 5,200 employees in 70 countries and had revenues of around €973 million (IFRS, unaudited) in 2013.
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