Photo: C. Fischer

How can a foundation's assets be developed in such a way that they are sustainable in the long term - and at the same time provide social impetus? What role do entrepreneurial thinking, sustainability and a clear view to the future play? On the occasion of the current funding and financial report, Markus Ziener, CFO of the Software AG Foundation since 2014, takes stock: over ten years of transformation - from the former focus on the investment in Software AG to a broad-based, impact-oriented asset structure. A conversation about future markets such as renewable energies, about conscious investing - and about how a steady hand and a clear compass can create impact.

Mr. Ziener, you have been responsible for the Software AG Foundation's financial strategy since 2014. How has SAGST's course changed since then?
Markus Ziener: The annual report as at December 31, 2014 gives a good impression of the situation at that time. The foundation's assets had fallen from 989 to 847 million euros within a year - mainly as a result of the revaluation of our investment in Software AG. This position alone lost over 140 million euros in book value. With the exception of our special fund, which still exists today, the other investments - including smaller equity portfolios, some real estate and company investments - were of lesser financial significance and were partly in a state of upheaval. Some investments were sold, others restructured. In retrospect, this phase was the starting point for a gradual realignment of our asset management - with the aim of securing assets in the long term and at the same time positioning them for the future.

What characterizes the current structure of the foundation's assets and what considerations determined this reorganization?
Markus Ziener: Today - around ten years later - we have a differentiated and well-balanced asset structure that is divided into four central investment areas, each of which is subject to different economic dependencies: Real estate, capital market investments, entrepreneurial investments and money market. The foundation's total assets have grown to around 1.3 billion euros. Our target allocation is around 550 million euros in real estate, around 400 million euros on the capital market - spread across two special funds and selected bonds - around 300 million euros in entrepreneurial investments and around 50 million euros in short-term funds. We always invest with a plan and on the basis of an investment concept that systematically spreads risks, is geared towards reliable returns and at the same time creates social added value. Our aim is to combine stability, responsibility and sustainability - without losing sight of the return.

In this context, SAGST has been increasingly focusing on renewable energies for several years. What was the motivation behind this move?
Markus Ziener : The expansion of entrepreneurial investments is a central element of our asset strategy - and the renewable energy sector in particular has developed a special dynamic in recent years. In 2024, we therefore founded SAGST Renewables GmbH: our own investment vehicle that invests directly in wind power, photovoltaics (PV) and storage solutions. Our aim was not just to be indirectly involved, but to assume responsibility as an operator ourselves - and thus have a targeted social impact. The company has independent management and a tax-efficient structure. The first projects, including wind farms in Perscheid, Prüm and Altenglan as well as a PV plant in Spain, have already been connected to the grid or are about to be commissioned. This makes us not only an investor, but also an active part of the energy transition.

Let's talk about the past financial year: What is your balance sheet for 2024?
Markus Ziener : 2024 was an exceptionally successful year - one that you perhaps only experience two or three times a decade. All asset classes recorded positive developments. The capital market was particularly strong, driven by above-average performance in both equities and bonds. Securities investments alone generated income of 29 million euros. At 7.1%, the return on equity in this segment was well above the target figure of 4%. A total surplus of around 55 million euros was generated across all asset classes. Our properties - despite individual vacancies in the commercial sector - and our investments also made a substantial contribution to the result. This was by no means a matter of course. Against this backdrop in particular, the outstanding result confirms our assessment: our strategic orientation is proving to be extremely robust - and we have the necessary flexibility to be able to react effectively to changing conditions.

What are your next steps - and what is important to you in the long term?
Markus Ziener: The strategic course has been set. Now it's all about operational stability and efficiency. In the real estate sector, we are responding to the challenging market situation - particularly in the commercial segment - by systematically expanding our letting management staff. With regard to our investments, we are currently examining how we can further increase our return on equity through debt capital - for example at SAGST Renewables. Stability, impact and returns remain crucial for us. We want to operate reliably, contribute to social transformation and create long-term value. This interplay of entrepreneurship, responsibility and impact is our compass - and we are sticking to it.