2014

SAP Announces Record Full Year and Fourth Quarter 2012 -- Full Year 2012 Non-IFRS Software and Software-Related Service Revenue Increases 17% to euro 13.2 Billion

WALLDORF, Germany, Jan. 23, 2013 /PRNewswire/ --

  • 12th Consecutive Quarter of Double-Digit Growth in Non-IFRS Software and Software-Related Service Revenue
  • Revenue Guidance Exceeded: At Constant Currencies, Full Year 2012 Non-IFRS Software and Software-Related Service Revenue Increased 13%
  • Full Year Non-IFRS Software & Cloud Subscriptions Revenue[1] Increased 21% to €5.00 Billion (17% At Constant Currencies)
  • Very Strong Software Revenue Contribution From Innovations in Full Year 2012: €392 Million from SAP HANA and €222 Million from Mobile
  • Accelerating Cloud Momentum: Annual Cloud Revenue Run Rate Approaching €850 Million[2]
  • Full Year 2012 Non-IFRS Operating Profit Increased 11% to €5.21 Billion (7% to €5.02 Billion at Constant Currencies Compared to Guidance Range of €5.05 - €5.25 Billion)

SAP AG (NYSE: SAP) today announced its preliminary financial results for the fourth quarter ended December 31, 2012.

(Logo:  http://photos.prnewswire.com/prnh/20110126/AQ34470LOGO )

BUSINESS HIGHLIGHTS IN THE FOURTH QUARTER AND FULL YEAR 2012

SAP delivered record revenues in 2012. Non-IFRS total revenue grew 14% year-on-year and exceeded €16 billion. Non-IFRS software and software-related service revenue grew 17% year-on-year to €13.2 billion. Non-IFRS software and cloud subscriptions revenue grew 21% year-on-year to €5 billion.

SAP delivered strong overall growth in the fourth quarter. The company achieved strong software revenue performance in the APJ region. The EMEA region delivered impressive results in light of the continued uncertain market environment and the Americas region had a solid software revenue performance considering a tough year-over-year comparison. SAP delivered exceptional growth in its key innovation areas SAP HANA, Mobile and Cloud: SAP HANA had an outstanding quarter reaching nearly €200 million in software revenue in the fourth quarter and achieving almost €400 million for the full year. SAP's mobile business contributed more than €220 million to software revenue achieving its full year revenue target.

SAP's strong cloud momentum continued in the fourth quarter: Derived from the total revenue of SAP's two cloud segments (Cloud Applications and Ariba) the annual cloud revenue run rate is approaching €850 million. For the SAP cloud applications segment alone 12 month new and upsell subscription billings increased nineteen fold in the fourth quarter. Even when including SuccessFactors in SAP's 2011 numbers the growth is triple digit at 102%[3]. For SuccessFactors on a stand-alone basis, 12 month new and upsell subscription billings grew 95%.

"In 2012, SAP empowered best-run businesses to meet real-time consumer demands. We invested in our flagship innovation SAP HANA and strengthened the industry's best portfolio in the cloud. We delivered industry-specific solutions, accessible anywhere on the mobile device," said SAP Co-CEOs Bill McDermott and Jim Hagemann Snabe. "Our momentum has never been stronger. We are very well positioned to achieve our 2015 goals."

"We achieved €5 billion in full year non-IFRS software and cloud subscription revenue, an increase of 21%. We saw very strong revenue contribution from our key innovations SAP HANA and Cloud. We are confident we will continue our double-digit growth momentum in 2013 and further improve our profitability," said SAP CFO Werner Brandt.

FINANCIAL RESULTS IN DETAIL


FINANCIAL HIGHLIGHTS – Fourth Quarter 2012




Fourth Quarter 2012(1)


IFRS



Non-IFRS(2)




€ million, unless otherwise stated

Q4 2012

Q4 2011

% change

Q4 2012

Q4 2011

% change

% change const. curr.









     Software

1,937

1,779

9

1,937

1,779

9

8

     Cloud subscriptions and support

126

6

2,000

159

6

2,691

2,608

Software & cloud subscriptions

2,063

1,785

16

2,096

1,785

17

16

Support

2,165

1,936

12

2,170

1,937

12

10

Software and software-related service revenue

4,227

3,721

14

4,265

3,722

15

13

Total revenue

5,022

4,499

12

5,061

4,500

12

11

Total operating expenses

−3,431

−2,831

21

−3,096

−2,719

14

12

- thereof TomorrowNow litigation

2

6

-67

0

0

0


Operating profit

1,591

1,668

−5

1,964

1,781

10

9

Operating margin (%)

31.7

37.1

−5.4pp

38.8

39.6

−0.8pp

−0.6pp

Profit after tax

1,104

1,197

−8

1,359

1,277

6


Basic earnings per share (€)

0.93

1.01

−8

1.14

1.07

7


Number of employees (FTE)

64,422

55,765

16

N/A

N/A

N/A

N/A


1) All figures are preliminary and unaudited.

2) For a detailed description of SAP's non-IFRS measures see Explanation of Non-IFRS Measures online. For a breakdown of the individual adjustments see page F8 in the appendix to this press release.

IFRS software revenue was €1,937 million (2011: €1,779 million), an increase of 9% (8% at constant currencies). IFRS software & cloud subscriptions revenue was €2.06 billion (2011: €1.79 billion), an increase of 16%. Non IFRS software & cloud subscriptions revenue was €2.10 billion (2011: €1.79 billion), an increase of 17% (16% at constant currencies). IFRS software and software-related service revenue was €4.23 billion (2011: €3.72 billion), an increase of 14%. Non-IFRS software and software-related service revenue was €4.27 billion (2011: €3.72 billion), an increase of 15% (13% at constant currencies). IFRS total revenue was €5.02 billion (2011: €4.50 billion), an increase of 12%. Non-IFRS total revenue was €5.06 billion (2011: €4.50 billion), an increase of 12% (11% at constant currencies).

IFRS operating profit was €1.59 billion (2011: €1.67 billion), a decrease of 5%. Non-IFRS operating profit was €1.96 billion (2011: €1.78 billion), an increase of 10% (9% at constant currencies). IFRS operating margin was 31.7% (2011: 37.1%), a decrease of 5.4 percentage points. Non-IFRS operating margin was 38.8% (2011: 39.6%), or 39.0% at constant currencies, a decrease of 0.8 percentage points (a decrease of 0.6 percentage points at constant currencies).

IFRS operating profit and IFRS operating margin for the fourth quarter 2012 were impacted by share-based compensation expense of €185 million (2011: €1 million) and acquisition-related charges of €151 million (2011: €116 million). Share-based compensation expenses significantly increased primarily due to the implementation of new share-based compensation plans as well as the strong performance of SAP's share price in 2012.

Total headcount for the group grew in the fourth quarter by 304 FTEs organically and by almost 3,100 FTEs in total (including acquisition of Ariba) compared to the previous quarter.

IFRS profit after tax was €1.10 billion (2011: €1.20 billion), a decrease of 8%. Non-IFRS profit after tax was €1,359 million (2011: €1,277 million), an increase of 6%. IFRS basic earnings per share was €0.93 (2011: €1.01), a decrease of 8%. Non-IFRS basic earnings per share was €1.14 (2011: €1.07), an increase of 7%. The IFRS and non-IFRS effective tax rates in the fourth quarter of 2012 were 27.7% (2011: 26.3%) and 28.5% (2011: 26.4%), respectively.

FINANCIAL HIGHLIGHTS – Full Year 2012


Full Year 2012(1)


IFRS

Non-IFRS(2)

€ million, unless otherwise stated

FY 2012

FY 2011

% change

FY 2012

FY 2011

% change

% change const. curr.









     Software

4,658

4,107

13

4,658

4,107

13

10

     Cloud subscriptions and support

270

18

1,400

342

18

1,839

1,717

Software & cloud subscriptions

4,928

4,125

19

5,000

4,125

21

17

Support

8,236

7,194

14

8,244

7,221

14

10

Software and software-related service revenue

13,164

11,319

16

13,245

11,346

17

13

Total revenue

16,222

14,233

14

16,303

14,260

14

10

Total operating expenses

−12,158

−9,352

30

−11,094

−9,550

16

12

- thereof TomorrowNow litigation

0

717

-100

0

0

0


Operating profit

4,064

4,881

−17

5,209

4,710

11

7

Operating margin (%)

25.1

34.3

−9.2pp

32.0

33.0

−1.0pp

−1.1pp

Profit after tax

2,826

3,439

−18

3,608

3,367

7


Basic earnings per share (€)

2.37

2.89

−18

3.03

2.83

7


Number of employees (FTE)

64,422

55,765

16

N/A

N/A

N/A

N/A


1) All figures are preliminary and unaudited.

2) For a detailed description of SAP's non-IFRS measures see Explanation of Non-IFRS Measures online. For a breakdown of the individual adjustments see page F8 in the appendix to this press release.

IFRS software revenue was €4.66 billion (2011: €4.11 billion), an increase of 13% (10% at constant currencies). IFRS software & cloud subscriptions revenue was €4.93 billion (2011: €4.13 billion), an increase of 19%. Non IFRS software & cloud subscriptions revenue was €5.00 billion (2011: €4.13 billion), an increase of 21% (17% at constant currencies). IFRS software and software-related service revenue was €13.16 billion (2011: €11.32 billion), an increase of 16%. Non-IFRS software and software-related service revenue was €13.25 billion (2011: €11.35 billion), an increase of 17% (13% at constant currencies). This exceeded SAP's non-IFRS software and software-related service revenue guidance which was the high end of the 10.5 – 12.5% range at constant currencies. IFRS total revenue was €16.22 billion (2011: €14.23 billion), an increase of 14%. Non-IFRS total revenue was €16.30 billion (2011: €14.26 billion), an increase of 14% (10% at constant currencies).

IFRS operating profit was €4.06 billion (2011: €4.88 billion), a decrease of 17%. Non-IFRS operating profit was €5.21 billion (2011: €4.71 billion), an increase of 11% (€5.02 billion at constant currencies, an increase of 7%). This was slightly below SAP's non-IFRS operating profit guidance (which was in a range of €5.05 - €5.25 billion at constant currencies) due to the company's continued investments in key innovations as well as the expansion of SAP's global go-to-market activities. IFRS operating margin was 25.1% (2011: 34.3%), a decrease of 9.2 percentage points. Non-IFRS operating margin was 32.0% (2011: 33.0%), or 31.9% at constant currencies, a decrease of 1.0 percentage points (a decrease of 1.1 percentage points at constant currencies).

IFRS operating profit and IFRS operating margin for the full year 2012 were impacted by share-based compensation expense of €519 million (2011: €68 million) and acquisition-related charges of €537 million (2011: €448 million). Share-based compensation expenses significantly increased primarily due to the implementation of new share-based compensation plans as well as the strong performance of SAP's share price in 2012. Additionally, for the full year 2011, the reduction of the provision for the TomorrowNow litigation resulted in a significant profit from the discontinued TomorrowNow activities. This had a 5.1 percentage point positive influence on SAP's full year 2011 IFRS operating margin. For this reason the 2012 and 2011 IFRS profit and margin numbers are not fully comparable.

Operating profit and operating margin for the full year 2012 were impacted by SAP's continued investments in its global go-to-market activities and its cloud business. Total headcount for the group grew year-over-year by almost 8,700 FTEs (thereof more than 4,800 FTEs from acquisitions).

IFRS profit after tax was €2.83 billion (2011: €3.44 billion), a decrease of 18%. Non-IFRS profit after tax was €3.61 billion (2011: €3.37 billion), an increase of 7%. IFRS basic earnings per share was €2.37 (2011: €2.89), a decrease of 18%. Non-IFRS basic earnings per share was €3.03 (2011: €2.83), an increase of 7%. The IFRS and non-IFRS effective tax rates in the full year 2012 were 26.1% (2011: 27.9%) and 27.4% (2011: 26.6%), respectively.

Operating cash flow was €3.65 billion (2011: €3.78 billion), a decrease of 3%. Free cash flow was €3.11 billion (2011: €3.33 billion), a decrease of 7%. Free cash flow was 19% of total revenue (2011: 23%). At December 31, 2012, SAP had a total group liquidity of €2.49 billion (December 31, 2011: €5.60 billion), which includes cash and cash equivalents and short term investments. Net liquidity at December 31, 2012 was -€2.50 billion compared to €1.64 billion at December 31, 2011. This decrease in net liquidity was primarily the result of the annual shareholder dividend payment and the acquisition of SuccessFactors and Ariba in 2012.

BUSINESS OUTLOOK

SAP is providing the following outlook for the full year 2013:

  • The Company expects full year 2013 non-IFRS software & cloud subscriptions revenue to increase in a range of 14% – 20% at constant currencies (2012: €5.00 billion). The full year 2013 non-IFRS cloud subscription and support revenue contributing to this growth is expected to be around €750 million at constant currencies (2012: €342 million).
  • The Company expects full-year 2013 non-IFRS software and software-related service revenue to increase in a range of 11% – 13% at constant currencies (2012: €13.25 billion).
  • The Company expects full-year 2013 non-IFRS operating profit to be in a range of €5.85 billion – €5.95 billion at constant currencies (2012: €5.21 billion).
  • The Company projects a full-year 2013 IFRS effective tax rate of 25.5% – 26.5% (2012: 26.1%) and a non-IFRS effective tax rate of 27.0% – 28.0% (2012: 27.4%).

Additional Information

The financial information presented above reflects the results of the acquisitions of SuccessFactors starting on February 21, 2012 and Ariba starting on October 1, 2012. Except as described in Explanation of Non-IFRS Measures, no amounts have been reflected in SAP's results in respect of either company prior to the date of acquisition.

For a more detailed description of all of SAP's non-IFRS measures and their limitations as well as our constant currency and free cash flow figures see Explanation of Non-IFRS Measures online.

2012 Integrated Report and Annual Report

SAP's 2012 Integrated Report, SAP's 2012 Annual Report to Shareholders (a subset of SAP's 2012 Integrated Report) and SAP's 2012 Annual Report on Form 20-F are scheduled to be published on March 22, 2013, and will be available for download at www.sap.com/investor.

Webcast

SAP senior management will host a press conference in Walldorf today at 10:00 AM (CET) / 9:00 AM (GMT) / 4:00 AM (Eastern) / 1:00 AM (Pacific), followed by a financial analyst call at 2:00 PM (CET) / 1:00 PM (GMT) / 8:00 AM (Eastern) / 5:00 AM (Pacific). Both conferences will be web cast live on the Company's website at www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the full-year and quarterly results and the 2013 outlook can be found at www.sap.com/investor.

About SAP

As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 232,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission ("SEC"), including SAP's most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

© 2013 SAP AG.  All rights reserved.

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[1] Starting with the reporting for the fourth quarter and full year 2012, SAP has introduced, in the revenue section of its income statement, a new line item "Software & Cloud Subscriptions Revenue" which is the subtotal of the existing line items 'Software Revenue' and 'Cloud Subscriptions and Support Revenue'. The content of the line items included in the subtotal as well as of all other line items in the income statements remain unchanged.

[2] The annual revenue run rate is derived from the total revenue of SAP's two cloud segments (Cloud Applications and Ariba) in the fourth quarter of 2012 and includes Ariba (before any future growth). The annual run rate is calculated by taking the fourth quarter cloud division total revenue and multiplying it by 4.

[3] Q4 2012 year-over-year growth rate in 12 month new and upsell subscription billings which relates to SAP cloud applications business (excluding Ariba). The growth rate is a pro forma growth rate assuming that the acquisition of SuccessFactors was completed as of January 1, 2011. For more information on our non-IFRS billings see Explanation of Non-IFRS Measures online.

Appendix – Financial Information to Follow

FINANCIAL INFORMATION


FOR THE FOURTH QUARTER 2012


(Condensed and Unaudited)





Page

Financial Statements (IFRS)

        Income Statements - Quarter 

F1

        Income Statements - Twelve Months 

F2

        Statements of Financial Position 

F3-F4

        Statements of Cash Flows

F5


Supplementary Financial Information

        Reconciliations from Non-IFRS Numbers to IFRS Numbers  

F6-F7

        Non-IFRS Adjustments 

F8

        Revenue by Region  

F9-F10

 

Financial Statements (IFRS)

Consolidated Income Statements

For the three months ended December 31


€ millions, unless otherwise stated


2012

2011

Change

in %

Software


1,937

1,779

9

Cloud subscriptions and support


126

6

2,000

Software & cloud subscription


2,063

1,785

16

Support


2,165

1,936

12

Software and software-related service revenue


4,227

3,721

14

Consulting


612

615

0

Other services


183

163

12

Professional services and other service revenue


795

778

2

Total revenue


5,022

4,499

12






Cost of software and software-related services


−732

−604

21

Cost of professional services and other services


−634

−576

10

Total cost of revenue


−1,367

−1,180

16

Gross profit


3,655

3,319

10

Research and development


−630

−537

17

Sales and marketing


−1,149

−941

22

General and administration


−306

−200

53

Restructuring


0

−2

−100

TomorrowNow litigation


2

6

−67

Other operating income/expense, net


20

23

−13

Total operating expenses


−3,431

−2,831

21

Operating profit


1,591

1,668

−5






Other non-operating income/expense, net


−28

−41

−32

Finance income


21

46

−54

Finance costs TomorrowNow litigation


0

1

−100

Other finance costs


−56

−50

12

Finance costs


−56

−49

14

Financial income, net


−35

−3

>100

Profit before tax


1,528

1,624

−6






Income tax TomorrowNow litigation


−1

−5

−80

Other income tax expense


−423

−422

0

Income tax expense


−424

−427

−1

Profit after tax


1,104

1,197

−8

Profit attributable to non-controlling interests


0

0

0

Profit attributable to owners of parent


1,104

1,197

−8






Basic earnings per share, in €*


0.93

1.01

−8

Diluted earnings per share, in €*


0.92

1.01

−8


* For the three months ended December 31, 2012 and 2011, the weighted average number of shares was 1,192 million (diluted 1,194 million) and 1,190 million (diluted: 1,190 million), respectively (treasury stock excluded).



F1

 

Consolidated Income Statements

For the twelve months ended December 31


€ millions, unless otherwise stated


2012

2011

Change

in %

Software


4,658

4,107

13

Cloud subscriptions and support


270

18

1,400

Software & cloud subscription


4,928

4,125

19

Support


8,236

7,194

14

Software and software-related service revenue


13,164

11,319

16

Consulting


2,442

2,341

4

Other services


616

573

8

Professional services and other service revenue


3,058

2,914

5

Total revenue


16,222

14,233

14






Cost of software and software-related services


−2,476

−2,107

18

Cost of professional services and other services


−2,522

−2,248

12

Total cost of revenue


−4,998

−4,355

15

Gross profit


11,224

9,878

14

Research and development


−2,268

−1,939

17

Sales and marketing


−3,935

−3,081

28

General and administration


−970

−715

36

Restructuring


−8

−4

100

TomorrowNow litigation


0

717

−100

Other operating income/expense, net


21

25

−16

Total operating expenses


−12,158

−9,352

30

Operating profit


4,064

4,881

−17






Other non-operating income/expense, net


−173

−75

>100

Finance income


107

123

−13

Finance costs TomorrowNow litigation


−1

8

<-100

Other finance costs


−174

−169

3

Finance costs


−175

−161

9

Financial income, net


−68

−38

79

Profit before tax


3,823

4,768

−20






Income tax TomorrowNow litigation


0

−281

−100

Other income tax expense


−996

−1,048

−5

Income tax expense


−996

−1,329

−25

Profit after tax


2,826

3,439

−18

Profit attributable to non-controlling interests


0

1

−100

Profit attributable to owners of parent


2,826

3,438

−18






Basic earnings per share, in €*


2.37

2.89

−18

Diluted earnings per share, in €*


2.37

2.89

−18


* For the twelve months ended December 31, 2012 and 2011, the weighted average number of shares was 1,191 million (diluted 1,192 million) and 1,189 million (diluted: 1,190 million), respectively (treasury stock excluded).


Due to rounding, numbers may not add up precisely.



F2

 

Consolidated Statements of Financial Position

As at December 31, 2012, and December 31, 2011


€ millions


2012

2011

Cash and cash equivalents


2,475

4,965

Other financial assets


154

817

Trade and other receivables


3,915

3,493

Other non-financial assets


332

187

Tax assets


157

207

Total current assets


7,033

9,669





Goodwill


13,274

8,711

Intangible assets


3,234

2,024

Property, plant, and equipment


1,710

1,551

Other financial assets


633

538

Trade and other receivables


88

84

Other non-financial assets


68

39

Tax assets


173

146

Deferred tax assets


655

465

Total non-current assets


19,836

13,558

Total assets


26,870

23,227





F3

 

€ millions


2012

2011

Trade and other payables


911

937

Tax liabilities


552

409

Financial liabilities


802

1,331

Other non-financial liabilities


2,107

1,981

Provision TomorrowNow litigation


234

231

Other provisions


699

331

Provisions


933

562

Deferred income


1,383

1,046

Total current liabilities


6,689

6,266





Trade and other payables


45

43

Tax liabilities


391

408

Financial liabilities


4,445

2,925

Other non-financial liabilities


98

92

Provisions


393

268

Deferred tax liabilities


572

474

Deferred income


64

44

Total non-current liabilities


6,007

4,254

Total liabilities


12,696

10,520





Issued capital


1,229

1,228

Share premium


492

419

Retained earnings


13,976

12,466

Other components of equity


−194

−37

Treasury shares


−1,337

−1,377

Equity attributable to owners of parent


14,166

12,699





Non-controlling interests


8

8

Total equity


14,174

12,707

Equity and liabilities


26,870

23,227





F4

 

Consolidated Statements of Cash Flows

For the twelve months ended December 31


€ millions

2012

2011

Profit after tax

2,826

3,439

Adjustments to reconcile profit after taxes to net cash provided by operating activities:



Depreciation and amortization

863

724

Income tax expense

996

1,329

Financial income, net

68

38

Decrease/increase in sales and bad debt allowances on trade receivables

−24

−18

Other adjustments for non-cash items

31

14

Decrease/increase in trade receivables

−297

−426

Decrease/increase in other assets

−72

−59

Decrease/increase in trade payables, provisions and other liabilities

207

−380

Decrease/increase in deferred income

153

121

Cash outflows due to TomorrowNow litigation

7

−52

Interest paid

−164

−139

Interest received

92

92

Income taxes paid, net of refunds

−1,034

−908

Net cash flows from operating activities

3,652

3,775




Business combinations, net of cash and cash equivalents acquired

−5,898

−179

Cash payments for derivative instruments related to business combinations

−26

−9

Total cash outflows for  business combinations, net of cash and cash equivalents acquired

−5,924

−188

Purchase of intangible assets and property, plant, and equipment

−543

−445

Proceeds from sales of intangible assets or property, plant, and equipment

39

55

Purchase of equity or debt instruments of other entities

−1,022

−2,046

Proceeds from sales of equity or debt instruments of other entities

1,654

1,398

Net cash flows from investing activities

−5,796

−1,226




Purchase of non-controlling interests

0

−28

Dividends paid

−1,310

−713

Purchase of treasury shares

−53

−246

Proceeds from reissuance of treasury shares

90

251

Proceeds from issuing shares (share-based compensation)

15

46

Proceeds from borrowings

5,778

519

Repayments of borrowings

−4,714

−1,005

Net cash flows from financing activities

−194

−1,176




Effect of foreign exchange rates on cash and cash equivalents

−152

74

Net decrease/increase in cash and cash equivalents

−2,490

1,447

Cash and cash equivalents at the beginning of the period

4,965

3,518

Cash and cash equivalents at the end of the period

2,475

4,965





F5

 

Supplementary Financial Information

(UNAUDITED)


RECONCILIATION FROM NON-IFRS NUMBERS TO IFRS NUMBERS

The following tables present a reconciliation from our non-IFRS numbers (including our non-IFRS at constant currency numbers) to the
respective most comparable IFRS numbers. Note: Our non-IFRS numbers are not prepared under a comprehensive set of accounting rules
or principles.



for the three months ended  December 31

€ millions, unless otherwise stated

2012

2011

Change in %


IFRS

Adj.*

Non-IFRS*

Currency

impact**

Non-IFRS

constant

currency**

IFRS

Adj.*

Non-IFRS*

IFRS

Non-IFRS*

Non-IFRS

constant

currency**

Revenue Numbers












Software

1,937

0

1,937

−12

1,925

1,779

0

1,779

9

9

8

Cloud subscriptions and support

126

33

159

−5

154

6

0

6

2,000

2,691

2,608

Software & cloud subscription

2,063

33

2,096

−17

2,079

1,785

0

1,785

16

17

16

Support

2,165

5

2,170

−42

2,128

1,936

1

1,937

12

12

10

Software and software-related service revenue

4,227

38

4,265

−58

4,207

3,721

1

3,722

14

15

13

Consulting

612

0

612

−14

598

615

0

615

0

0

−3

Other services

183

0

183

−3

180

163

0

163

12

12

10

Professional services and other

service revenue

795

0

795

−17

778

778

0

778

2

2

0

Total revenue

5,022

38

5,061

−75

4,985

4,499

1

4,500

12

12

11













Operating Expense Numbers












Cost of software and software-related services

−732

84

−648



−604

69

−535

21

21


Cost of professional services and other services

−634

30

−605



−576

5

−571

10

6


Total cost of revenue

−1,367

114

−1,253



−1,180

74

−1,106

16

13


Gross profit

3,655

152

3,808



3,319

75

3,394

10

12


Research and development

−630

47

−583



−537

5

−532

17

10


Sales and marketing

−1,149

74

−1,075



−941

32

−909

22

18


General and administration

−306

101

−205



−200

7

−193

53

6


Restructuring

0

0

0



−2

2

0

−100

0


TomorrowNow litigation

2

−2

0



6

−6

0

−67

0


Other operating income/expense, net

20

0

20



23

0

23

−13

−13


Total operating expenses

−3,431

334

−3,096

55

−3,041

−2,831

112

−2,719

21

14

12













Profit Numbers












Operating profit

1,591

373

1,964

−20

1,944

1,668

113

1,781

−5

10

9

Other non-operating income/expense, net

−28

0

−28



−41

0

−41

−32

−32


Finance income

21

0

21



46

0

46

−54

−54


Finance costs TomorrowNow litigation

0

0

0



1

−1

0

−100

0


Other finance costs

−56

0

−56



−50

0

−50

12

12


Finance costs

−56

0

−56



−49

−1

−50

14

12


Financial income, net

−35

0

−35



−3

−1

−4

>100

>100


Profit before tax

1,528

373

1,901



1,624

112

1,736

−6

10


Income tax TomorrowNow litigation

−1

1

0



−5

5

0

−80

0


Other income tax expense

−423

−119

−542



−422

−37

−459

0

18


Income tax expense

−424

−118

−542



−427

−32

−459

−1

18


Profit after tax

1,104

255

1,359



1,197

81

1,277

−8

6


Profit attributable to non-controlling interests

0

0

0



0

0

0

0

0


Profit attributable to owners of parent

1,104

255

1,359



1,197

81

1,277

−8

6














Key Ratios












Operating margin in %

31.7


38.8


39.0

37.1


39.6

−5.4pp

−0.8pp

−0.6pp

Effective tax rate in %

27.7


28.5



26.3


26.4

1.4pp

2.1pp


Basic earnings per share, in €*

0.93


1.14



1.01


1.07

−8

7




F6


 


for the twelve months ended December 31

€ millions, unless otherwise stated

2012

2011

Change in %


IFRS

Adj.*

Non-IFRS*

Currency

impact**

Non-IFRS

constant

currency**

IFRS

Adj.*

Non-IFRS*

IFRS

Non-IFRS*

Non-IFRS

constant

currency**

Revenue Numbers












Software

4,658

0

4,658

−134

4,524

4,107

0

4,107

13

13

10

Cloud subscriptions and support

270

72

342

−20

322

18

0

18

1,400

1,839

1,717

Software & cloud subscription

4,928

72

5,000

−154

4,846

4,125

0

4,125

19

21

17

Support

8,236

8

8,244

−286

7,958

7,194

27

7,221

14

14

10

Software and software-related service revenue

13,164

81

13,245

−441

12,805

11,319

27

11,346

16

17

13

Consulting

2,442

0

2,442

−95

2,347

2,341

0

2,341

4

4

0

Other services

616

1

617

−19

599

573

0

573

8

8

5

Professional services and other service revenue

3,058

0

3,058

−113

2,945

2,914

0

2,914

5

5

1

Total revenue

16,222

81

16,303

−553

15,750

14,233

27

14,260

14

14

10













Operating Expense Numbers












Cost of software and software-related services

−2,476

338

−2,138



−2,107

285

−1,822

18

17


Cost of professional services and other services

−2,522

138

−2,384



−2,248

32

−2,216

12

8


Total cost of revenue

−4,998

475

−4,522



−4,355

317

−4,038

15

12


Gross profit

11,224

557

11,781



9,878

344

10,222

14

15


Research and development

−2,268

144

−2,124



−1,939

41

−1,898

17

12


Sales and marketing

−3,935

251

−3,684



−3,081

127

−2,954

28

25


General and administration

−970

186

−784



−715

30

−685

36

14


Restructuring

−8

8

0



−4

4

0

100

0


TomorrowNow litigation

0

0

0



717

−717

0

−100

0


Other operating income/expense, net

21

0

21



25

0

25

−16

−16


Total operating expenses

−12,158

1,064

−11,094

362

−10,732

−9,352

−198

−9,550

30

16

12













Profit Numbers












Operating profit

4,064

1,145

5,209

−192

5,018

4,881

−171

4,710

−17

11

7

Other non-operating income/expense, net

−173

0

−173



−75

0

−75

>100

>100


Finance income

107

0

107



123

0

123

−13

−13


Finance costs TomorrowNow litigation

−1

1

0



8

−8

0

<-100

0


Other finance costs

−174

0

−174



−169

0

−169

3

3


Finance costs

−175

1

−174



−161

−8

−169

9

3


Financial income, net

−68

1

−67



−38

−8

−46

79

46


Profit before tax

3,823

1,146

4,969



4,768

−179

4,589

−20

8


Income tax TomorrowNow litigation

0

0

0



−281

281

0

−100

0


Other income tax expense

−996

−365

−1,361



−1,048

−174

−1,222

−5

11


Income tax expense

−996

−365

−1,361



−1,329

107

−1,222

−25

11


Profit after tax

2,826

781

3,608



3,439

−72

3,367

−18

7


Profit attributable to non-controlling interests

0

0

0



1

0

1

−100

−100


Profit attributable to owners of parent

2,826

781

3,607



3,438

−72

3,366

−18

7














Key Ratios












Operating margin in %

25.1


32.0


31.9

34.3


33.0

−9.2pp

−1.0pp

−1.1pp

Effective tax rate in %

26.1


27.4



27.9


26.6

−1.8pp

0.8pp


Basic earnings per share, in €*

2.37


3.03



2.89


2.83

−18

7



* Adjustments in the revenue line items are for support revenue, cloud subscription revenue, and other similarly recurring revenues that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges, share-based compensation expenses, restructuring expenses and discontinued activities.

** Constant currency revenue and operating income figures are calculated by translating revenue and operating income of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS number of the previous year's respective period.



F7

 

NON-IFRS ADJUSTMENTS


€ millions, unless otherwise stated

10/01/ -

12/31/2012

1/1/ -

12/31/2012

10/01/ -

12/31/2011

1/1/ -

12/31/2011






Software and software-related service revenue (IFRS)

4,227

13,164

3,721

11,319

Adjustment for deferred revenue write-down

38

81

1

27

Software and software-related service revenue  (Non-IFRS)

4,265

13,245

3,722

11,346






Operating profit (IFRS)

1,591

4,064

1,668

4,881

Revenue Adjustments (per above)

38

81

1

27

Adjustment for discontinued activities

−2

0

−6

−717

Adjustment for acquisition-related charges 

151

537

116

448

Adjustment for stock-based compensation expenses

185

519

1

68

Adjustment for restructuring

0

8

2

4

Operating expense adjustments

334

1,064

112

−198

Operating profit adjustments

373

1,145

113

−171

Operating profit (Non-IFRS)

1,964

5,209

1,781

4,710






Profit after tax  (IFRS)

1,104

2,826

1,197

3,439

Revenue adjustments (per above)

38

81

1

27

Operating profit adjustments (per above)

334

1,064

112

−198

Financial income, net adjustments

0

1

−1

−8

Adjustments pre-tax

373

1,146

112

−179

Taxes on adjustments

−118

−365

−32

107

Profit after tax (Non-IFRS)

1,359

3,608

1,277

3,367


Due to rounding, numbers may not add up precisely.



F8

 

REVENUE BY REGION


The following table presents our IFRS and non-IFRS revenue by region. Software revenue by region is based on location of negotiation and customer location whereas Software & Cloud Subscription revenue by region, software and software-related service revenue by region and total revenue by region are based on customer location. The table also presents a reconciliation from our non-IFRS revenue (including our non-IFRS revenue at constant currency) to the respective most comparable IFRS revenue. Note: Our non-IFRS revenues are not prepared under a comprehensive set of accounting rules or principles.


Software revenue by Places where Contracts were Negotiated




















for the three months ended December 31

€ millions

2012

2011

 Change in %


IFRS

Adj.*

Non-IFRS*

Currency

impact**

Non-IFRS

constant

currency**

IFRS

Adj.*

Non-IFRS*

IFRS

Non-IFRS*

Non-IFRS

constant

currency**

Software revenue by region












EMEA

937

0

937

−7

930

865

0

865

8

8

8

Americas

643

0

643

−1

642

625

0

625

3

3

3

APJ

357

0

357

−4

353

290

0

290

23

23

22

Software revenue  

1,937

0

1,937

−12

1,925

1,779

0

1,779

9

9

8




























Revenues by Location of Customers






















for the three months ended December 31

€ millions

2012

2011

 Change in %


IFRS

Adj.*

Non-IFRS*

Currency

impact**

Non-IFRS

constant

currency**

IFRS

Adj.*

Non-IFRS*

IFRS

Non-IFRS*

Non-IFRS

constant

currency**

Software revenue by region












EMEA

936

0

936

−7

929

863

0

863

8

8

8

Americas

643

0

643

−1

642

627

0

627

3

3

2

APJ

357

0

357

−4

353

290

0

290

23

23

22

Software revenue  

1,937

0

1,937

−12

1,925

1,779

0

1,779

9

9

8













Software & cloud subscription
revenue by region












EMEA

958

0

958

−7

951

867

0

867

10

10

10

Americas

740

33

773

−6

767

629

0

629

18

23

22

APJ

365

0

365

−4

361

290

0

290

26

26

24

Software & cloud subscription revenue

2,063

33

2,096

−17

2,079

1,785

0

1,785

16

17

16













Software and software-related service revenue by region












Germany

575

0

575

0

575

578

0

578

−1

−1

−1

Rest of EMEA

1,441

0

1,441

−19

1,422

1,260

0

1,260

14

14

13

Total EMEA

2,015

0

2,015

−18

1,997

1,838

0

1,838

10

10

9

United States

1,081

38

1,119

−29

1,090

895

0

895

21

25

22

Rest of Americas

411

0

411

4

415

379

0

379

8

8

9

Total Americas

1,492

38

1,530

−25

1,505

1,274

1

1,274

17

20

18

Japan

209

0

209

5

214

182

0

182

15

15

18

Rest of APJ

511

0

511

−20

491

428

0

428

19

19

15

Total APJ

720

0

720

−15

705

609

0

609

18

18

16

Software and software-related service revenue

4,227

38

4,265

−58

4,207

3,721

1

3,722

14

15

13













Total revenue by region












Germany

712

0

712

0

712

729

0

729

−2

−2

−2

Rest of EMEA

1,673

0

1,673

−22

1,651

1,501

0

1,501

11

11

10

Total EMEA

2,386

0

2,386

−22

2,364

2,231

0

2,231

7

7

6

United States

1,310

38

1,348

−38

1,310

1,108

0

1,108

18

22

18

Rest of Americas

501

0

501

3

504

462

0

462

8

8

9

Total Americas

1,811

38

1,849

−35

1,814

1,569

1

1,570

15

18

16

Japan

232

0

232

5

237

202

0

202

15

15

17

Rest of APJ

594

0

594

−23

571

497

0

497

20

20

15

Total APJ

825

0

825

−17

808

699

0

699

18

18

16

Total revenue 

5,022

38

5,061

−75

4,985

4,499

1

4,500

12

12

11



F9

 

Software revenue by Places where Contracts were Negotiated





















for the twelve months ended December 31

€ millions

2012

2011

 Change in %


IFRS

Adj.*

Non-IFRS*

Currency

impact**

Non-IFRS

constant

currency**

IFRS

Adj.*

Non-IFRS*

IFRS

Non-IFRS*

Non-IFRS

constant

currency**

Software revenue by region












EMEA

2,005

0

2,005

−19

1,986

1,852

0

1,852

8

8

7

Americas

1,774

0

1,774

−78

1,696

1,534

0

1,534

16

16

11

APJ

879

0

879

−37

842

722

0

722

22

22

17

Software revenue  

4,658

0

4,658

−134

4,524

4,107

0

4,107

13

13

10




























Revenues by Location of Customers






















for the twelve months ended December 31

€ millions

2012

2011

 Change in %


IFRS

Adj.*

Non-IFRS*

Currency

impact**

Non-IFRS

constant

currency**

IFRS

Adj.*

Non-IFRS*

IFRS

Non-IFRS*

Non-IFRS

constant

currency**

Software revenue by region












EMEA

2,041

0