Morgan Stanley 12th Annual Technology, Media &

Telecoms Conference

November 14-16, 2012

Karl-Heinz Streibich

CEO

November 2012 | 2

This presentation contains forward-looking statements based on 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.

Safe-Harbor-Statement

November 2012 | 3

> € 1bn revenue

29% operating margin (EBITDA)

> € 2.5 bn market cap,

Net cash positive

> 5,000 Employees Worldwide

71% Free float,

29% Software AG Foundation

Global customer base:

80% of Fortune 10,000

Tech leader in systems integration,

process automation and data management

Software AG - At a Glance

High performance database

(pre-relational)

Process Planning,

monitoring and analysis

Middleware to integrate data

applications and digital workflows

Big-data and In-memory technology

Product Highlights

November 2012 | 4

0

200

400

600

800

1,000

1,200

0

20

40

60

80

100

120

140

160

180

200

411

1,098

24

188

Total Revenue (€m) FCF (€m)

2011 2004

0.0

0.5

1.0

1.5

2.0

2.5

0.65

2.05

EPS (€)

0.0

0.2

0.4

0.6

0.25

0.46

Dividend (€)

Software AG – Track Record

2011 2004

2011 2004 2011 2004

November 2012 | 5

(Revenue split based on FC 2012)

New Business

(started 2004)

Integration Technology

/SOA /Cloud

Business Process

Management (BPM)

Big Data / Terracotta

52%

BPE

36%

ETS

12%

IDSC

Revenue by Business Line (Segment)

Traditional Business

(started 1970)

Data Management

(ADABAS)

Application

Modernization

(Natural)

SAP Consulting

(acquired 2009 with

IDS Scheer Group)

November 2012 | 6

PIIGS

< 4%

BRICS 14%

47%

31%

13%

9%

Product Revenue by Industry

*Based on product revenue 9m 2012

Product Revenue by Region*

Product Revenue by Industry*

Revenue Split – Well Balanced

Financial Sector

Public Sector

IT Associa-

tions

Services

Manu-facturing

Telcos

Logistics

Retail Other

21%

20%

EMEA

(ex Germany)

Asia Pacific

Germany

Americas

14%

Software AG Positioned in the

Sweet Spot of IT Mega Trends

November 2012 | 8

Agility Layer

Agility Layer – Enabler for the Digital Enterprise

Increase Performance and Reduce Costs of Organizations

Integration/SOA

InMemory - BIG DATA

Processes

November 2012 | 9

Three Strategic Areas

SaaS

OLTP Hadoop

OLAP

ERP CRM HR

November 2012 | 10

SLOW

EXPENSIVE

COMPLEX

Terracotta: In-Memory & Big Data

Without BigMemory

100x FASTER than

retrieving data

from database

COST REDUCTION

maximize utilization of RAM

and reduce load on database

SIMPLE to deploy,

easy to install,

“plug & play”

SCALEABLE – capacity for

terabytes of data and 100,000s

of transactions per second

REALTIME access to business

critical data in microseconds

enables new business models

HIGH PERFORMING - lower

latency enables higher

throughput and boost high

volume transactions

With BigMemory

Database

Data „In

Memory“ Speed up

Save Costs

Data in

Database

Memory

November 2012 | 11

Risk Systems – Fraud Detection / Prevention

Business Challenge

Fraud detection processing taking too long

Resulting in transaction timeouts and loss of business

Solution

Terracotta BigMemory

Processed terabytes of real-time transaction data in-

memory

Business Value

99.999% Completed Transactions

Reduce fraud processing time from 800ms to less than 20ms

Other Benefits

Solution will expand with their 30% year over year growth

Terracotta - BigMemory at Work

November 2012 | 12

Largest Airline Reservation System

Business Challenge

Mainframe costs are too high

750K reservations a day

Retain high reliability of mainframe

Solution

Terracotta BigMemory

Storing 500GBs of travel reservation sessions and

itineraries per day

Business Value

Delivered SLA’s

Offload Mainframe MIPs by 80%

Maintained 99.999% of transaction integrity

12

Terracotta - BigMemory at Work

November 2012 | 13

Innovations for IT Mega Trends -

7 New Product Offerings will Come to Market in 2013

Cloud Social Mobile BigData

Strategy and Outlook

November 2012 | 15

Growth Strategy

Growth

based on three pillars

Organic Growth…

…leverage technology

leadership in enterprise

infrastructure software

• Fast integration

middleware

• High speed process

automation

• High performance

data management

Innovation…

…addressing

Mega Trends

for enterprise IT

• Cloud

• Big Data

• Mobile

• Collaboration

Selective M&A…

…in three strategic

areas:

• Integration / SOA &

Cloud

• Business Processes

• Big Data

November 2012 16

9% 9%

9%

26%

22% 22% 19%

26% 24%

2008 2010 2009

Innovation through own R&D as well as Acquisitions

8%

27%

18%

2011

2007

2008

2009

2010 2011 2012

BPE R&D cost + amortization of acquired

IPR/products in % of product revenue

BPE R&D cost (all expensed)

ETS R&D cost (all expensed)

Strategic Acquisitions

Technology Tuck Ins

November 2012 | 17

(Revenue in €m)

BPE – New Business Outgrowing Revenue from Traditional Business

357 383

405 396 420

381

126

238

316

372

499 528

0

100

200

300

400

500

600

2006 2007 2008 2009 2010 2011 2012e

Business Process Excellence Enterprise Transaction Systems

540 –

560

375 –

380

9m

283

9m

391

2012e

Q4

Q4

November 2012 | 18

Organic Growth – BPE Investment Phase 2012/2013

(in €m)

Total

Revenue

Gross

Revenue R&D

Sales & Marketing

Segment

result

9M 2012

9M 2011

266.4

-55.2

-109.4

Segment

margin 26%

376.7

390.9

Segment

margin 28% 242.1

-44.7

-91.7

14%* 28%*

12%* 24%*

*as % of total revenue

68%*

105.7

101.8

64%*

November 2012 | 19

Outlook FY 2012

* Net of currency, delta

(in €m, IFRS)

Total Revenue BPE

FY 2011

528

24.5%

Outlook FY 2012 (as of Oct. 30, 2012)

23.0% to 24.0%

0% to + 3%*

9m 2012

22.4%

381 -4% to -2%*

0%*

674

338

+3% to +6%* + 3%*

- 2%*

+10%* +10 to +13%* thereof BPE

Total Revenue ETS

EBIT Margin Group

Product Revenue Group

November 2012 | 20

Revenue split as % of Total Revenue: according to mid-term plan

~20%

Transformation of Revenue Drivers

~80% ~15%

Traditional Business

• ETS

New Business

• Organic Growth BPE

• Integration Technology

• Business Process Mgt.

• Cloud

• Terracotta / Big Data

• Partner / Indirect Sales / OEM

• M&A / Strategic Acquisitions

SAP Consulting (IDSC)

2011/2012 2017/2018

~35%

~50%

€ 1bn

73%

27%

2005/2006

Backup

November 2012 | 22

Currency impact on revenue YTD 2012 (9 months)

37% revenue in Euro

63% revenue in foreign currency

Euro 37%

US Dollar 25%

Others 10%

ILS 4%

JPY 2%

AUD 4%

ZAR 4%

GBP 4%

CAD 4%

BRL 6%

(in €m; yoy)

Q3

2012

Q3

in %

9m

2012

9m

in %

Licenses 3.1 4% 7.6 4%

Maintenance 4.8 5% 10.7 4%

Consulting &

other

1.7

2% 4.2 2%

Total 9.6 4% 22.5 3%

Currency impact on revenue

November 2012 | 23

(in €m) Q3

2012

Q3

2011 Δ% YTD

2012

YTD

2011 Δ%

Licenses 50.0 41.7 20% 131.3 112.1 17%

Maintenance 46.7 42.5 10% 139.7 124.4 12%

Product revenue 96.7 84.2 15% 271.0 236.5 15%

Services & other 37.6 47.0 -20% 119.9 140.2 -14%

Total revenue 134.3 131.2 2% 390.9 376.7 4%

Cost of sales -38.3 -47.2 -19% -124.5 -134.6 -8%

Gross profit 96.0 84.0 14% 266.4 242.1 10%

Sales & marketing -36.5 -31.6 16% -109.4 -91.7 19%

R & D -18.8 -15.1 25% -55.2 -44.7 23%

Segment result 40.7 37.3 9% 101.8 105.7 -4%

Segment report Q3 2012 / YTD 2012 (9 months)

Business Process Excellence

November 2012 | 24

(in €m) Q3

2012

Q3

2011 Δ% YTD

2012

YTD 2011

Δ%

Licenses 30.2 31.7 -5% 89.1 87.2 2%

Maintenance 47.4 47.5 - 142.5 144.2 -1%

Product revenue 77.6 79.2 -2% 231.6 231.4 -

Services & other 16.2 15.9 2% 51.5 50.2 3%

Total revenue 93.8 95.1 -1% 283.1 281.6 1%

Cost of sales -18.2 -15.6 17% -54.0 -55.1 -2%

Gross profit 75.6 79.5 -5% 229.1 226.5 1%

Sales & marketing -15.9 -16.8 -5% -47.8 -47.9 -

R & D -6.3 -6.8 -7% -19.5 -20.5 -5%

Segment result 53.4 55.9 -4% 161.8 158.1 2%

Segment report Q3 2012 / YTD 2012 (9 months)

Enterprise Transaction Systems

November 2012 | 25

Segment report Q3 2012 / YTD 2012 (9 months)

IDS Scheer Consulting

(in €m) Q3

2012

Q3

2011 Δ% YTD

2012

YTD

2011 Δ%

External product revenue 4.0 5.6 -29% 12.7 16.8 -24%

Services & other 25.3 42.8 -41% 83.9 129.3 -35%

Total revenue 29.3 48.4 -39% 96.6 146.1 -34%

Cost of sales -27.6 -37.4 -26% -93.0 -126.9 -27%

Gross profit 1.7 11.0 -85% 3.6 19.2 -81%

Sales & marketing -4.4 -7.0 -37% -13.8 -20.2 -32%

R & D - -0.1 - - -0.3 -

Segment result -2.7 3.9 - -10.2 -1.3 -

November 2012 | 26

Revenue Q3 2012 / YTD 2012 (9 months)

(in €m) Q3

2012

Q3

2011 Δ%

YTD

2012

YTD

2011 Δ%

Product 178.3 168.9 6% 515.3 484.7 6%

Licenses 80.5 74.7 8% 221.8 203.6 9%

Maintenance 97.8 94.2 4% 293.5 281.1 4%

Consulting &

Services

78.2 105.2 -26% 253.7 316.4 -20%

Other 0.9 0.5 - 1.6 3.2 -

Total 257.4 274.6 -6% 770.6 804.3 -4%

November 2012 | 27

Result Q3 2012 / YTD 2012 (9 months)

* Depreciation & amortization is included in functional areas according to IFRS

(in €m) Q3

2012

Q3

2011 Δ% YTD

2012

YTD

2011

Δ%

Product revenue 178.3 168.9 6% 515.3 484.7 6%

Total revenue 257.4 274.6 -6% 770.6 804.3 -4%

Cost of sales -90.2 -106.4 -15% -289.5 -332.4 -13%

Gross profit 167.2 168.2 -1% 481.1 471.9 2%

Margin in % 65.0% 61.3% 62.4% 58.7%

R & D -25.2 -22.0 15% -74.8 -65.4 14%

Sales & marketing -60.4 -58.5 3% -181.3 -168.6 8%

Administration -20.0 -15.3 31% -54.2 -49.1 10%

Other income/expense -0.5 -0.4 25% 2.1 2.4 -13%

EBIT 61.1 72.0 -15% 172.9 191.2 -10%

Margin in % 23.7% 26.2% 22.4% 23.8%

EBITDA (pro-forma*) 73.7 85.1 -13% 210.8 226.3 -7%

Margin in % 28.6% 31.0% 27.4% 28.1%

November 2012 | 28

Net result Q3 2012 / YTD 2012 (9 months)

(in €m) Q3

2012

Q3

2011 Δ% YTD

2012

YTD

2011 Δ%

EBIT 61.1 72.0 -15% 172.9 191.2 -10%

Margin in % 23.7% 26.2% 22.4% 23.8%

Financial income -1.4 -3.2 56% -5.2 -6.8 24%

Profit before tax 59.7 68.8 -13% 167.7 184.4 -9%

Taxes -19.0 -22.2 14% -53.7 -59.1 9%

Tax rate in % 31.8% 32.3% 32.0% 32.0%

Net income 40.7 46.6 -13% 114.0 125.3 -9%

EPS in €* 0.47 0.54 -13% 1.31 1.46 -10%

* Weighted average shares outstanding (basic) Q3 2012: 86.8 m / Q3 2011: 86.7 m (incl. share split)

November 2012 | 29

Cash flow Q3 2012 / YTD 2012 (9 months)

* Cash flow from investing activities except acquisitions / ** incl. share split 2011

(in €m) Q3

2012

Q3

2011 Δ% YTD

2012

YTD

2011 Δ%

Operating cash flow 28.7 17.9 60% 133.5 115.4 16%

./. CapEx* -4.1 -4.6 -8.0 -7.2

Free cash flow 24.6 13.3 85% 125.5 108.2 16%

as % of revenue 9.6% 4.8% 16.3% 13.5%

Free cash flow per share in €** 0.28 0.15 87% 2 1.45 1.26 15%

Weighted average number of

shares (in m)**

86.8 86.7 86.8 86.0

November 2012 | 30

Balance sheet

Assets Liabilities (in €m)

1,680.7

1,067.2 1,069.2

80.4 77.1

304.8 317.9

274.7 216.5

1,027.0 951.5

142.9 105.9

293.0 345.9

264.2 277.4

1,680.7 1,727.1 1,727.1 1,680.7

Sept. 30,

2012

Dec. 31,

2011

Sept. 30,

2012

Dec. 31,

2011

Cash and cash

equivalents

Trade receivables

Inventory,

other assets

Fixed assets

(goodwill

759.9 / 752.2)

Total

Financial

liabilities

Other liabilities

Deferred

income

Shareholders

equity (ratio

59.5% / 56.6%)

Total

November 2012 | 31

Amortization / depreciation impact 2012ff (preliminary)

* Estimated

Amortization IDS

(in €m)

Amortization other

Depreciation

Q3

2012

2.7

7.0

2.9

FY

2012*

11.0

25.5

11.6

FY

2013ff*

11.0

26.6

12.4

November 2012 | 32

Headcount by functional areas* and geography

* According to P+L structure

(in FTE) Sept.30,

2012

June 30,

2012 Δ%

qoq

Sept. 30,

2011 Δ%

yoy

Total 5,436 5,461 - 5,498 -1%

Consulting & Services 2,716 2,794 -3% 2,874 -5%

R & D 892 896 - 855 4%

Sales & marketing 1,084 1,042 4% 1,031 5%

Administration 744 729 2% 738 1%

USA 739 725 2% 721 2%

Germany 1,783 1,803 -1% 1,920 -7%

Rest of world 2,914 2,933 -1% 2,857 2%

Thank you

Please contact:

Investor Relations

Uhlandstrasse 12

64297 Darmstadt

Germany

phone: +49 (0) 6151 / 92- 3046

fax: +49 (0) 6151 / 92- 1933

web: softwareag.com

e-mail: investor.relations@softwareag.com