Software AG: Software AG proposes dividend of €0.05

Darmstadt (pta036/03.03.2023/19:43 UTC+1)

Software AG proposes dividend of €0.05

Darmstadt, Germany – March 3, 2023: The Management Board of Software AG (Frankfurt MDAX®: SOW) today decided to propose a dividend of €0.05 per share for fiscal year 2022 at the Annual Shareholders' Meeting on May 17, 2023.

Daniela Bünger, Chief Financial Officer (CFO) of Software AG, said:

"Our dividend proposal reflects the shareholders' interest to focus the company on long-term sustainable as well as profitable growth during this final year of our Helix transformation program. In line with our strategic objectives, we are working full speed on the expansion of our Integration business, including the completion of the StreamSets' integration, while ensuring that cost efficiency measures are in place to meet expectations of significantly improving margins and cash flow in the following years. We remain confident that the company will deliver on the 2023 guidance."

The reduced dividend proposal compared to the prior year is based on a more prudent capital allocation to strengthen the long-term profitability and financial position of the company. In fiscal year 2022, the transformation to a sustainable subscription and SaaS licensing model had a negative impact on free cash flow. The Management Board assesses this factor, which will continue to have an impact in fiscal year 2023, as temporary and is confident in its free cash flow generation from 2024 onwards at the latest.

Software AG remains committed to its communicated dividend policy and is working toward higher shareholder returns going forward.

Subject to the approval of the Annual Shareholders' Meeting and assuming 74.0 million (2021: 74.0 million) dividend-bearing shares outstanding, this would be a total payout sum of €3.7 million (2021: €56.2 million).

Annual Shareholders' Meeting

Software AG's Annual Shareholders' Meeting will be held as an in-person event at the Darmstadtium in Darmstadt, Germany, on May 17, 2023.

About Software AG

Software AG simplifies the connected world. Founded in 1969, it helps deliver the experiences that employees, partners and customers now expect. Its technology creates the digital backbone that integrates applications, devices, data and clouds; empowers streamlined processes; and connects "things" like sensors, devices and machines. It helps 10,000+ organizations to become a truly connected enterprise and make smarter decisions, faster. The Company has about 5,000 employees across more than 70 countries and annual Group revenue of more than €950 million.

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Disclaimer

This document includes forward-looking statements based on the beliefs of the management of Software AG (together with its consolidated subsidiaries, the "Software AG Group"), which are predictions, projections, or other statements about future events. 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 have any obligation to update these forward-looking statements and has no intention to assume such an obligation.

This document constitutes neither an offer nor recommendation to subscribe or buy in any other way securities of Software AG or any of the companies that are members of the Software AG Group at present or in the future, nor does it form part of such an offer and it should not be understood as such. This document does not constitute an offer of securities for sale or a solicitation of an offer to purchase securities in the United States of America or in any other jurisdiction in which such offer or solicitation is not authorized or to any person to whom it is unlawful to make such offer or solicitation. Securities of Software AG may not be offered or sold in the United States of America without registration or exemption from registration in accordance with the U.S. Securities Act of 1933, as amended.

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Emitter:	Software AG Uhlandstraße 12 64297 Darmstadt Germany
Contact Person:	Investor Relations
Phone:	+49 615192 1900
E-Mail:	Investor.Relations@softwareag.com
Website:	www.softwareag.com
ISIN(s):	DE000A2GS401 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf, Hamburg, Hannover, Munich, Stuttgart, Tradegate