SAP SE: Cloud Revenue Up 33% - IFRS EPS Up 38% - Non-IFRS EPS Up 9%
SAP Q1 2016 Quarterly Statement
- Non-IFRS cloud and software revenue increased 5% to €3.85 billion (6% at constant currencies)
- SAP S/4HANA momentum continues, now exceeding 3,200 customers
- Growing operating profit amidst industry transformation in contrast to main peer
- High visibility into strong second quarter and full year pipeline across all regions indicates increasing momentum as the year progresses - SAP firmly reiterates outlook
WALLDORF, Germany, April 20, 2016 /PRNewswire/ -- SAP SE (NYSE: SAP) today announced its financial results for the first quarter ended March 31, 2016.
Business Highlights
Financial Highlights
SAP had strong growth in the cloud, ahead of its mid-term aspirations. First quarter non-IFRS cloud subscriptions and support revenue grew 33% year-over-year (33% at constant currencies) to €678 million. New cloud bookings1 grew a solid 23% (26% at constant currencies) in the first quarter and reached €145 million.
The rapidly growing cloud business together with solid growth in support revenue drove a record share of more predictable revenue. The total of cloud subscriptions & support revenue and software support revenue reached 69% share of total revenue in the first quarter 2016.
IFRS cloud and software revenue was €3.85 billion (2015: €3.65 billion), an increase of 5%. Non-IFRS cloud and software revenue was €3.85 billion (2015: €3.66 billion), an increase of 5% (6% at constant currencies).
IFRS operating profit was up 28% to €0.81 billion. Non-IFRS operating profit grew 5% to €1.10 billion (4% at constant currencies). IFRS earnings per share increased 38% to €0.48. Non-IFRS earnings per share increased 9% to €0.64.
Operating cash flow was €2.48 billion (2015: €2.37 billion), an increase of 5% year-over-year. Free cash flow increased 4% year-over-year to €2.31 billion (2015: €2.23 billion).
"The entire SAP company is focused on delivering best in class solutions to our customers. Our pipeline is strong across our entire portfolio and we are confidently reiterating our guidance for the full year," said Bill McDermott, SAP CEO.
"SAP's strong cloud growth was at the high end of our guidance range for 2016 and ahead of our midterm aspirations. Our cloud gross margin expanded year over year which – along with the successful business transformation – drove operating profit up 5% even with a lower than expected license performance," said Luka Mucic, SAP CFO.
SAP S/4HANA
SAP S/4HANA momentum continued in the first quarter as customers increasingly embrace the benefits of running simple and real time. SAP added more than 500 SAP S/4HANA customers in the quarter, of which approximately 30% are net new SAP customers. A growing driver behind the global S/4HANA adoption is SAP HANA Enterprise Cloud (HEC). Customers can migrate their mission-critical processes to the cloud – HEC offers secure and fast access to SAP's new innovation. Benetton, Norton Rose Fulbright, Beiqi Foton Motor and Huaxin Cement selected SAP S/4HANA in the first quarter.
Human Capital Management
SAP continues to gain traction with its cloud-based Human Capital Management solutions. SAP delivers total workforce management solutions globally and provides extensibility with the HANA Cloud Platform. The customer count for SAP SuccessFactors Employee Central, which is the core of our Human Capital Management offerings, exceeded 1,100 at the end of the first quarter.
Customer Engagement and Commerce
With SAP's Customer Engagement and Commerce (CEC) solutions customers can build a new, more personalized relationship with their consumers, making it richer and more contextual across all channels. SAP is unique because it also enables businesses to connect the front and back office in real-time and fulfill ecommerce in one end-to-end value chain. CEC cloud subscription and support revenue saw strong double-digit growth in the first quarter.
Business Networks
SAP is leading the charge to a hyperconnected world. SAP's business network solutions which include Ariba, Fieldglass and Concur provide a rich open platform that connects a large ecosystem of customers, suppliers, partners and developers delivering ever expanding content and innovation.
Approximately 2.1 million connected companies trade over $800 billion of commerce2 on the Ariba network, approximately 40 million end users process travel and expenses effortlessly with Concur and customers managed over 2.3 million flexible workers in approximately 130 countries with the Fieldglass platform over the past 12 months.
Regional Performance
The Company had a solid performance in the EMEA region, with an 8% increase in Non-IFRS cloud and software revenue. Non-IFRS cloud subscriptions and support revenue grew 49%. In EMEA SAP had solid software license revenue growth.
In the Americas region, the Company grew Non-IFRS cloud and software revenue by 4% and Non-IFRS cloud subscriptions and support revenue by 29%. North America, coming off a very strong fourth quarter in 2015, had a slower than anticipated start to the year. In Latin America, in particular in Brazil, the continuing political and macroeconomic instability weighed on the company's first quarter performance.
In the APJ region Non-IFRS cloud and software revenue was up 1%, with Non-IFRS cloud subscriptions and support revenue growing by 26%. SAP's software revenue performance in the region was in line with the Company's expectations given a tough prior year comparison. China was a highlight with double-digit software revenue growth.
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1 New cloud bookings consist of order entry of a given period that is expected to be classified as cloud subscription and support revenue and results from purchases by new customers and from incremental purchases by existing customers. Consequently, orders to renew existing contracts are not included. The order amount must be committed. Consequently, due to their pay-per-use nature, business network transaction fees which do not include a committed minimum consumption are not reflected in the bookings metric (e.g. SAP Ariba and SAP Fieldglass transaction-based fees). Amounts included in the measures are generally annualized. | |
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2 Network spend volume is the total value of purchase orders transacted on the Ariba Network in the trailing 12 months. In previous quarters this also included Concur and Fieldglass for which as of the third quarter 2015 separate more relevant metrics are disclosed. |
Financial Results at a Glance
|
First Quarter 20161) | |||||||
|
IFRS |
Non-IFRS2) | ||||||
|
€ million, unless otherwise stated |
Q1 2016 |
Q1 2015 |
∆ in % |
Q1 2016 |
Q1 2015 |
∆ in % |
∆ in % const. curr. |
|
New Cloud Bookings3) |
145 |
117 |
23 |
N/A |
N/A |
N/A |
N/A |
|
Cloud subscriptions and support |
677 |
503 |
35 |
678 |
509 |
33 |
33 |
|
Software licenses and support |
3,172 |
3,150 |
1 |
3,173 |
3,150 |
1 |
2 |
|
Cloud and software |
3,850 |
3,653 |
5 |
3,851 |
3,659 |
5 |
6 |
|
Total revenue |
4,727 |
4,497 |
5 |
4,728 |
4,502 |
5 |
6 |
|
Share of predictable revenue (in %) |
69 |
66 |
3pp |
69 |
66 |
3pp |
|
|
Operating profit |
813 |
638 |
28 |
1,104 |
1,056 |
5 |
4 |
|
Profit after tax |
570 |
413 |
38 |
763 |
697 |
9 |
|
|
Basic earnings per share (€) |
0.48 |
0.35 |
38 |
0.64 |
0.58 |
9 |
|
|
Number of employees (FTE) |
78,230 |
74,551 |
5 |
N/A |
N/A |
N/A |
N/A |
|
1) All figures are 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 F7 in this Quarterly Statement. | |
|
3) As this is an order entry metric, there are no Non-IFRS adjustments. |
Business Outlook 2016
The Company reiterates the following 2016 outlook:
- Based on the continued strong momentum in SAP's cloud business the Company expects full year 2016 non-IFRS cloud subscriptions and support revenue to be in a range of €2.95 - €3.05 billion at constant currencies (2015: €2.30 billion). The upper end of this range represents a growth rate of 33% at constant currencies.
- The Company expects full year 2016 non-IFRS cloud and software revenue to increase by 6% - 8% at constant currencies (2015: €17.23 billion).
- The Company expects full-year 2016 non-IFRS operating profit to be in a range of €6.4 billion - €6.7 billion at constant currencies (2015: €6.35 billion).
While the Company's full-year 2016 business outlook is at constant currencies, actual currency reported figures are expected to continue to be impacted by exchange rate fluctuations. If exchange rates remain at the March 2016 average level for the rest of the year, the Company expects its non-IFRS cloud and software revenue growth rate as well as its non-IFRS operating profit growth rate to experience a currency benefit in a range of 0 to 2 percentage points for the second quarter 2016 (1 to 3 percentage points for the full year 2016).
Additional Information
Subsequent Events
As of April 1, 2016 SAP has combined its small and medium-sized customers focused solutions SAP Anywhere, SAP Business One and SAP Business ByDesign into one end-to-end organization under the leadership of Executive Board member Steve Singh. In addition, Steve Singh will also be responsible for SAP's healthcare strategy and solutions and continues to be responsible for the SAP Business Networks. This is likely to lead to a change in our segment reporting as of Q2/2016.
General Remarks About this Quarterly Statement
In the past, SAP's quarterly earnings reporting consisted of an earnings press release with condensed financial information and an interim report. This quarterly statement replaces both of these documents and includes all relevant information of both of these documents. Going forward, we will issue a quarterly statement for each of the four fiscal quarters. Additionally, we will issue, as before, a half year report and a full year integrated report.
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.
Webcast
SAP earnings conference call for financial analysts will take place on Wednesday, April 20th at 2:00 PM (CEST) / 1:00 PM (GMT) / 8:00 AM (EDT) / 5:00 AM (PDT). The conference call will be web cast live on the Company's website at www.sap.com/investor and will be available for replay.
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 approximately 310,000 business and public sector customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.
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For more information, financial community only: | |
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Stefan Gruber |
+49 (6227) 7-44872 [email protected], CET |
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Follow SAP Investor Relations on Twitter at @sapinvestor | |
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For more information, press only: | |
|
Nicola Leske |
+49 (6227) 7-50852 [email protected], CET |
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Daniel Reinhardt |
+49 (6227) 7-40201 [email protected], CET |
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Rajiv Sekhri |
+49 (6227) 7-74871 [email protected], CET |
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For customers interested in learning more about SAP products: | |
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Global Customer Center: |
+49 180 534-34-24 |
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United States Only: |
1 (800) 872-1SAP (1-800-872-1727) |
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Financial and Non-Financial Key Facts | ||||||
|
€ millions, unless otherwise stated |
Q1 2015 |
Q2 2015 |
Q3 2015 |
Q4 2015 |
TY 2015 |
Q1 2016 |
|
Revenues |
||||||
|
Cloud subscriptions and support (IFRS) |
503 |
552 |
599 |
631 |
2,286 |
677 |
|
Cloud subscriptions and support (non-IFRS) |
509 |
555 |
600 |
632 |
2,296 |
678 |
|
% change – yoy |
131 |
129 |
116 |
76 |
109 |
33 |
|
% change constant currency – yoy |
95 |
92 |
90 |
60 |
82 |
33 |
|
Software licenses (IFRS) |
696 |
979 |
1,014 |
2,146 |
4,835 |
609 |
|
Software licenses (non-IFRS) |
696 |
979 |
1,015 |
2,146 |
4,836 |
609 |
|
% change – yoy |
12 |
2 |
7 |
15 |
10 |
–13 |
|
% change constant currency – yoy |
1 |
–7 |
4 |
11 |
4 |
–10 |
|
Software support (IFRS) |
2,454 |
2,531 |
2,509 |
2,600 |
10,093 |
2,564 |
|
Software support (non-IFRS) |
2,454 |
2,531 |
2,509 |
2,600 |
10,094 |
2,564 |
|
% change – yoy |
17 |
17 |
12 |
11 |
14 |
5 |
|
% change constant currency – yoy |
7 |
7 |
6 |
6 |
7 |
5 |
|
Software licenses and support (IFRS) |
3,150 |
3,510 |
3,523 |
4,745 |
14,928 |
3,172 |
|
Software licenses and support (non-IFRS) |
3,150 |
3,510 |
3,524 |
4,745 |
14,930 |
3,173 |
|
% change – yoy |
16 |
13 |
11 |
13 |
13 |
1 |
|
% change constant currency – yoy |
5 |
3 |
6 |
9 |
6 |
2 |
|
Cloud and software (IFRS) |
3,653 |
4,062 |
4,122 |
5,377 |
17,214 |
3,850 |
|
Cloud and software (non-IFRS) |
3,659 |
4,065 |
4,124 |
5,378 |
17,226 |
3,851 |
|
% change – yoy |
24 |
21 |
19 |
18 |
20 |
5 |
|
% change constant currency – yoy |
12 |
9 |
12 |
13 |
12 |
6 |
|
Total revenue (IFRS) |
4,497 |
4,970 |
4,985 |
6,342 |
20,793 |
4,727 |
|
Total revenue (non-IFRS) |
4,502 |
4,972 |
4,987 |
6,343 |
20,805 |
4,728 |
|
% change – yoy |
22 |
20 |
17 |
16 |
18 |
5 |
|
% change constant currency – yoy |
10 |
8 |
10 |
11 |
10 |
6 |
|
Share of predictable revenue (IFRS, in %) |
66 |
62 |
62 |
51 |
60 |
69 |
|
Share of predictable revenue (non-IFRS, in %) |
66 |
62 |
62 |
51 |
60 |
69 |
|
Profits |
||||||
|
Operating profit (IFRS) |
638 |
701 |
1,214 |
1,700 |
4,252 |
813 |
|
Operating profit (non-IFRS) |
1,056 |
1,394 |
1,616 |
2,282 |
6,348 |
1,104 |
|
% change |
15 |
13 |
19 |
7 |
13 |
5 |
|
% change constant currency |
–2 |
1 |
15 |
3 |
5 |
4 |
|
Profit after tax (IFRS) |
413 |
469 |
895 |
1,278 |
3,056 |
570 |
|
Profit after tax (non-IFRS) |
697 |
960 |
1,173 |
1,670 |
4,501 |
763 |
|
% change |
5 |
2 |
16 |
6 |
8 |
9 |
|
Margins |
||||||
|
Cloud subscriptions and support gross margin (IFRS, in %) |
55.3 |
56.5 |
57.9 |
51.8 |
55.3 |
57.5 |
|
Cloud subscriptions and support gross margin (non-IFRS, in %) |
65.1 |
65.7 |
68.8 |
63.0 |
65.6 |
66.3 |
|
Software and support gross margin (IFRS, in %) |
82.8 |
84.0 |
85.0 |
86.1 |
84.7 |
84.2 |
|
Software and support gross margin (non-IFRS, in %) |
85.1 |
86.1 |
86.7 |
87.7 |
86.6 |
85.9 |
|
Cloud and software gross margin (IFRS, in %) |
79.0 |
80.3 |
81.1 |
82.1 |
80.8 |
79.5 |
|
Cloud and software gross margin (non-IFRS, in %) |
82.3 |
83.3 |
84.1 |
84.8 |
83.8 |
82.4 |
|
Gross margin (IFRS, in %) |
64.7 |
67.1 |
69.0 |
70.8 |
68.1 |
65.1 |
|
Gross margin (non-IFRS, in %) |
68.6 |
70.5 |
71.9 |
74.1 |
71.5 |
67.9 |
|
Operating margin (IFRS, in %) |
14.2 |
14.1 |
24.3 |
26.8 |
20.5 |
17.2 |
|
Operating margin (non-IFRS, in %) |
23.5 |
28.0 |
32.4 |
36.0 |
30.5 |
23.4 |
|
AT&S Segment – Cloud subscriptions and support gross margin (in %) |
50.5 |
52.3 |
57.0 |
51.5 |
52.9 |
55.2 |
|
AT&S Segment – Gross margin (in %) |
68.5 |
71.1 |
72.4 |
75.1 |
72.1 |
68.1 |
|
AT&S Segment – Segment margin (in %) |
34.2 |
39.5 |
43.1 |
46.5 |
41.4 |
34.8 |
|
SAP BN Segment – Cloud subscriptions and support gross margin (in %) |
75.1 |
74.8 |
77.3 |
72.3 |
74.9 |
75.3 |
|
SAP BN Segment – Gross margin (in %) |
67.1 |
67.1 |
70.1 |
64.5 |
67.2 |
66.6 |
|
SAP BN Segment – Segment margin (in %) |
18.0 |
16.0 |
23.8 |
19.6 |
19.4 |
16.5 |
|
Key Profit Ratios |
||||||
|
Effective tax rate (IFRS, in %) |
13.6 |
26.4 |
27.1 |
22.4 |
23.4 |
23.3 |
|
Effective tax rate (non-IFRS, in %) |
22.3 |
27.8 |
28.0 |
25.1 |
26.1 |
26.2 |
|
Earnings per share, basic (IFRS, in €) |
0.35 |
0.39 |
0.75 |
1.07 |
2.56 |
0.48 |
|
Earnings per share, basic (non-IFRS, in €) |
0.58 |
0.80 |
0.98 |
1.40 |
3.77 |
0.64 |
|
Order Entry |
||||||
|
New cloud bookings |
117 |
199 |
213 |
345 |
874 |
145 |
|
Deferred cloud subscriptions and support revenue (IFRS, quarter end) |
793 |
789 |
782 |
957 |
957 |
953 |
|
Orders – Number of on-premise software deals |
12,037 |
13,504 |
14,027 |
17,871 |
57,439 |
12,884 |
|
Thereof worth > 5 Mio € (in %) |
23 |
24 |
24 |
31 |
27 |
17 |
|
Thereof worth < 1 Mio € (in %) |
49 |
41 |
44 |
34 |
40 |
48 |
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Liquidity and Cash Flow |
||||||
|
Net cash flows from operating activities |
2,366 |
410 |
466 |
397 |
3,638 |
2,482 |
|
Purchase of intangible assets and property, plant, and equipment (without acquisitions) |
–139 |
–137 |
–148 |
–212 |
–636 |
–168 |
|
Free cash flow |
2,227 |
273 |
317 |
184 |
3,001 |
2,313 |
|
% of total revenue (IFRS) |
50 |
5 |
6 |
3 |
14 |
49 |
|
Free cash flow |
2,227 |
273 |
317 |
184 |
3,001 |
2,313 |
|
% of profit after tax (IFRS) |
539 |
58 |
35 |
14 |
98 |
406 |
|
Group liquidity, gross |
5,333 |
4,180 |
4,608 |
3,559 |
3,559 |
5,853 |
|
Group debt |
–10,524 |
–10,432 |
–10,428 |
–9,174 |
–9,174 |
–9,080 |
|
Group liquidity, net |
–5,191 |
–6,251 |
–5,820 |
–5,615 |
–5,615 |
–3,227 |
|
Days' sales outstanding (DSO, in days)1) |
67 |
68 |
69 |
71 |
71 |
73 |
|
Financial Position |
||||||
|
Cash and cash equivalents |
4,635 |
3,923 |
3,844 |
3,411 |
3,411 |
5,743 |
|
Goodwill |
22,896 |
22,300 |
22,222 |
22,689 |
22,689 |
21,922 |
|
Total assets |
43,753 |
41,088 |
40,649 |
41,390 |
41,390 |
42,884 |
|
Equity |
22,117 |
20,801 |
21,540 |
23,295 |
23,295 |
22,920 |
|
Equity ratio (total equity in % of total assets) |
51 |
51 |
53 |
56 |
56 |
53 |
|
Non-Financials |
||||||
|
Headcount (quarter end)2) |
74,551 |
74,497 |
75,643 |
76,986 |
76,986 |
78,230 |
|
Employee retention (in %, rolling 12 months) |
93.3 |
92.6 |
91.9 |
91.8 |
91.8 |
92.0 |
|
Women in management (in %, quarter end) |
22.3 |
22.9 |
23.2 |
23.6 |
23.6 |
23.6 |
|
Greenhouse gas emissions (in kilotons) |
145 |
125 |
110 |
75 |
455 |
120 |
|
1) Days' sales outstanding measures the length of time it takes to collect receivables. SAP calculates DSO by dividing the average invoiced accounts receivables balance of the last 12 months by the average monthly sales of the last 12 months. | |
|
2) In full-time equivalents | |
|
Due to rounding, numbers may not add up precisely. |
|
Consolidated Income Statements of SAP Group (IFRS) | ||||
|
€ millions, unless otherwise stated |
Q1 2016 |
2015 Q1 |
∆ in % | |
|
Cloud subscriptions and support |
677 |
503 |
35 | |
|
Software licenses |
609 |
696 |
–13 | |
|
Software support |
2,564 |
2,454 |
4 | |
|
Software licenses and support |
3,172 |
3,150 |
1 | |
|
Cloud and software |
3,850 |
3,653 |
5 | |
|
Services |
877 |
844 |
4 | |
|
Total revenue |
4,727 |
4,497 |
5 | |
|
Cost of cloud subscriptions and support |
–288 |
–225 |
28 | |
|
Cost of software licenses and support |
–500 |
–543 |
–8 | |
|
Cost of cloud and software |
–788 |
–768 |
3 | |
|
Cost of services |
–860 |
–821 |
5 | |
|
Total cost of revenue |
–1,649 |
–1,589 |
4 | |
|
Gross profit |
3,078 |
2,908 |
6 | |
|
Research and development |
–709 |
–694 |
2 | |
|
Sales and marketing |
–1,310 |
–1,253 |
5 | |
|
General and administration |
–230 |
–272 |
–15 | |
|
Restructuring |
–11 |
–51 |
–79 | |
|
Other operating income/expense, net |
–6 |
–1 |
>100 | |
|
Total operating expenses |
–3,914 |
–3,859 |
1 | |
|
Operating profit |
813 |
638 |
28 | |
|
Other non-operating income/expense, net |
–35 |
–148 |
–76 | |
|
Finance income |
35 |
48 |
–27 | |
|
Finance costs |
–70 |
–59 |
19 | |
|
Financial income, net |
–35 |
–11 |
>100 | |
|
Profit before tax |
743 |
478 |
55 | |
|
Income tax expense |
–173 |
–65 |
>100 | |
|
Profit after tax |
570 |
413 |
38 | |
|
attributable to owners of parent |
572 |
414 |
38 | |
|
attributable to non-controlling interests |
–2 |
0 |
>100 | |
|
Earnings per share, basic (in €)1) |
0.48 |
0.35 |
38 | |
|
Earnings per share, diluted (in €)1) |
0.48 |
0.35 |
38 | |
|
1) For the three months ended March 31, 2016 and 2015, the weighted average number of shares was 1,198 million (diluted 1,199 million) and 1,195 million (diluted: 1,198 million), respectively (treasury stock excluded). | |
|
Due to rounding, numbers may not add up precisely. |
|
Consolidated Statements of Financial Position of SAP Group (IFRS) | |||
|
as at March 31, 2016 and December 31, 2015 | |||
|
€ millions
|
2016
|
2015
| |
|
Cash and cash equivalents |
5,743 |
3,411 | |
|
Other financial assets |
360 |
351 | |
|
Trade and other receivables |
5,550 |
5,275 | |
|
Other non-financial assets |
551 |
468 | |
|
Tax assets |
165 |
235 | |
|
Total current assets |
12,368 |
9,739 | |
|
Goodwill |
21,922 |
22,689 | |
|
Intangible assets |
3,954 |
4,280 | |
|
Property, plant, and equipment |
2,177 |
2,192 | |
|
Other financial assets |
1,251 |
1,336 | |
|
Trade and other receivables |
92 |
87 | |
|
Other non-financial assets |
336 |
332 | |
|
Tax assets |
287 |
282 | |
|
Deferred tax assets |
496 |
453 | |
|
Total non-current assets |
30,516 |
31,651 | |
|
Total assets |
42,884 |
41,390 | |
|
€ millions
|
2016
|
2015
| |
|
Trade and other payables |
954 |
1,088 | |
|
Tax liabilities |
191 |
230 | |
|
Financial liabilities |
828 |
841 | |
|
Other non-financial liabilities |
2,274 |
3,407 | |
|
Provisions |
196 |
299 | |
|
Deferred income |
5,265 |
2,001 | |
|
Total current liabilities |
9,708 |
7,867 | |
|
Trade and other payables |
90 |
81 | |
|
Tax liabilities |
414 |
402 | |
|
Financial liabilities |
8,640 |
8,681 | |
|
Other non-financial liabilities |
345 |
331 | |
|
Provisions |
275 |
180 | |
|
Deferred tax liabilities |
385 |
448 | |
|
Deferred income |
107 |
106 | |
|
Total non-current liabilities |
10,256 |
10,228 | |
|
Total liabilities |
19,964 |
18,095 | |
|
Issued capital |
1,229 |
1,229 | |
|
Share premium |
569 |
558 | |
|
Retained earnings |
20,621 |
20,044 | |
|
Other components of equity |
1,593 |
2,561 | |
|
Treasury shares |
–1,120 |
–1,124 | |
|
Equity attributable to owners of parent |
22,892 |
23,267 | |
|
Non-controlling interests |
28 |
28 | |
|
Total equity |
22,920 |
23,295 | |
|
Total equity and liabilities |
42,884 |
41,390 | |
|
Due to rounding, numbers may not add up precisely. |
|
Consolidated Statements of Cash Flows of SAP Group (IFRS) | ||
|
€ millions |
Q1 2016 |
Q1 2015 |
|
Profit after tax |
570 |
413 |
|
Adjustments to reconcile profit after taxes to net cash flows from operating activities: |
||
|
Depreciation and amortization |
309 |
321 |
|
Income tax expense |
173 |
65 |
|
Financial income, net |
35 |
11 |
|
Decrease/increase in sales and bad debt allowances on trade receivables |
35 |
18 |
|
Other adjustments for non-cash items |
8 |
–2 |
|
Decrease/increase in trade and other receivables |
–443 |
–890 |
|
Decrease/increase in other assets |
–191 |
–145 |
|
Decrease/increase in trade payables, provisions, and other liabilities |
–1,097 |
–567 |
|
Decrease/increase in deferred income |
3,393 |
3,556 |
|
Interest paid |
–54 |
–32 |
|
Interest received |
17 |
23 |
|
Income taxes paid, net of refunds |
–273 |
–405 |
|
Net cash flows from operating activities |
2,482 |
2,366 |
|
Business combinations, net of cash and cash equivalents acquired |
–3 |
–10 |
|
Cash receipts from derivative financial instruments related to business combinations |
0 |
266 |
|
Total cash flows for business combinations, net of cash and cash equivalents acquired |
–3 |
256 |
|
Purchase of intangible assets and property, plant, and equipment |
–168 |
–139 |
|
Proceeds from sales of intangible assets or property, plant, and equipment |
17 |
16 |
|
Purchase of equity or debt instruments of other entities |
–164 |
–755 |
|
Proceeds from sales of equity or debt instruments of other entities |
186 |
122 |
|
Net cash flows from investing activities |
–132 |
–500 |
|
Proceeds from reissuance of treasury shares |
7 |
6 |
|
Proceeds from borrowings |
0 |
2 |
|
Repayments of borrowings |
–2 |
–770 |
|
Transactions with non-controlling interests |
3 |
0 |
|
Net cash flows from financing activities |
7 |
–762 |
|
Effect of foreign currency rates on cash and cash equivalents |
–25 |
203 |
|
Net decrease/increase in cash and cash equivalents |
2,332 |
1,307 |
|
Cash and cash equivalents at the beginning of the period |
3,411 |
3,328 |
|
Cash and cash equivalents at the end of the period |
5,743 |
4,635 |
|
Due to rounding, numbers may not add up precisely. |
|
Segment Reporting (IFRS) | |||||
|
Applications, Technology & Services | |||||
|
€ millions |
Q1 2016 |
Q1 2015 |
∆ in % |
∆ in % | |
|
Actual Currency |
Constant Currency |
Actual Currency |
Actual Currency |
Constant Currency | |
|
Cloud subscriptions and support |
304 |
306 |
203 |
50 |
51 |
|
Software licenses |
608 |
626 |
696 |
–13 |
–10 |
|
Software support |
2,557 |
2,564 |
2,445 |
5 |
5 |
|
Software licenses and support |
3,165 |
3,191 |
3,141 |
1 |
2 |
|
Cloud and software |
3,470 |
3,497 |
3,344 |
4 |
5 |
|
Services |
802 |
817 |
784 |
2 |
4 |
|
Total segment revenue |
4,271 |
4,314 |
4,128 |
3 |
4 |
|
Cost of cloud subscriptions and support |
–136 |
–138 |
–100 |
36 |
37 |
|
Cost of software licenses and support |
–467 |
–467 |
–471 |
–1 |
–1 |
|
Cost of cloud and software |
–603 |
–605 |
–571 |
6 |
6 |
|
Cost of services |
–758 |
–775 |
–727 |
4 |
7 |
|
Total cost of revenue |
–1,362 |
–1,380 |
–1,298 |
5 |
6 |
|
Segment gross profit |
2,909 |
2,934 |
2,831 |
3 |
4 |
|
Total segment expenses |
–1,421 |
–1,442 |
–1,420 |
0 |
2 |
|
Segment profit |
1,488 |
1,492 |
1,411 |
5 |
6 |
|
Margins |
|||||
|
Cloud subscriptions and support gross margin (in %) |
55 |
55 |
51 |
5 |
|
|
Gross margin (in %) |
68 |
68 |
69 |
0 |
|
|
Segment margin (in %) |
35 |
35 |
34 |
1 |
|
|
SAP Business Network | |||||
|
€ millions |
Q1 2016 |
Q1 2015 |
∆ in % |
∆ in % | |
|
Actual Currency |
Constant Currency |
Actual Currency |
Actual Currency |
Constant Currency | |
|
Cloud subscriptions and support |
373 |
369 |
306 |
22 |
21 |
|
Software licenses |
0 |
0 |
0 |
0 |
0 |
|
Software support |
7 |
7 |
8 |
–9 |
–11 |
|
Software licenses and support |
7 |
7 |
8 |
–10 |
–12 |
|
Cloud and software |
380 |
375 |
314 |
21 |
20 |
|
Services |
71 |
71 |
55 |
30 |
30 |
|
Total segment revenue |
451 |
447 |
368 |
22 |
21 |
|
Cost of cloud subscriptions and support |
–92 |
–92 |
–76 |
21 |
20 |
|
Cost of software licenses and support |
0 |
0 |
0 |
0 |
0 |
|
Cost of cloud and software |
–92 |
–92 |
–77 |
20 |
20 |
|
Cost of services |
–59 |
–59 |
–45 |
32 |
33 |
|
Total cost of revenue |
–151 |
–151 |
–121 |
24 |
25 |
|
Segment gross profit |
300 |
296 |
247 |
22 |
20 |
|
Total segment expenses |
–226 |
–226 |
–181 |
25 |
25 |
|
Segment profit |
75 |
70 |
66 |
13 |
6 |
|
Margins |
|||||
|
Cloud subscriptions and support gross margin (in %) |
75 |
75 |
75 |
0 |
|
|
Gross margin (in %) |
67 |
66 |
67 |
–1 |
|
|
Segment margin (in %) |
17 |
16 |
18 |
–1 |
|
|
Reconciliation from Non-IFRS Numbers to IFRS Numbers | |||||||||||
|
€ millions, unless otherwise stated |
Q1 2016 |
Q1 2015 |
∆ in % | ||||||||
|
IFRS |
Adj.1) |
Non-IFRS1) |
Currency Impact2) |
Non-IFRS Constant Currency2) |
IFRS |
Adj.1) |
Non-IFRS1) |
IFRS |
Non-IFRS1) |
Non-IFRS Constant Currency2) | |
|
Revenue Numbers |
|||||||||||
|
Cloud subscriptions and support |
677 |
1 |
678 |
–2 |
676 |
503 |
6 |
509 |
35 |
33 |
33 |
|
Software licenses |
609 |
0 |
609 |
18 |
627 |
696 |
0 |
696 |
–13 |
–13 |
–10 |
|
Software support |
2,564 |
0 |
2,564 |
7 |
2,572 |
2,454 |
0 |
2,454 |
4 |
5 |
5 |
|
Software licenses and support |
3,172 |
0 |
3,173 |
25 |
3,198 |
3,150 |
0 |
3,150 |
1 |
1 |
2 |
|
Cloud and software |
3,850 |
1 |
3,851 |
23 |
3,874 |
3,653 |
6 |
3,659 |
5 |
5 |
6 |
|
Services |
877 |
0 |
877 |
15 |
892 |
844 |
0 |
844 |
4 |
4 |
6 |
|
Total revenue |
4,727 |
1 |
4,728 |
38 |
4,766 |
4,497 |
6 |
4,502 |
5 |
5 |
6 |
|
Operating Expense Numbers |
|||||||||||
|
Cost of cloud subscriptions and support |
–288 |
60 |
–228 |
–225 |
47 |
–178 |
28 |
29 |
|||
|
Cost of software licenses and support |
–500 |
52 |
–449 |
–543 |
73 |
–470 |
–8 |
–5 |
|||
|
Cost of cloud and software |
–788 |
111 |
–677 |
–768 |
121 |
–647 |
3 |
5 |
|||
|
Cost of services |
–860 |
19 |
–841 |
–821 |
52 |
–768 |
5 |
10 |
|||
|
Total cost of revenue |
–1,649 |
130 |
–1,518 |
–1,589 |
173 |
–1,415 |
4 |
7 |
|||
|
Gross profit |
3,078 |
132 |
3,210 |
2,908 |
179 |
3,087 |
6 |
4 |
|||
|
Research and development |
–709 |
27 |
–681 |
–694 |
54 |
–640 |
2 |
6 |
|||
|
Sales and marketing |
–1,310 |
107 |
–1,203 |
–1,253 |
93 |
–1,160 |
5 |
4 |
|||
|
General and administration |
–230 |
15 |
–216 |
–272 |
42 |
–229 |
–15 |
–6 |
|||
|
Restructuring |
–11 |
11 |
0 |
–51 |
51 |
0 |
–79 |
0 |
|||
|
Other operating income/expense, net |
–6 |
0 |
–6 |
–1 |
0 |
–1 |
>100 |
>100 |
|||
|
Total operating expenses |
–3,914 |
290 |
–3,624 |
–43 |
–3,667 |
–3,859 |
413 |
–3,446 |
1 |
5 |
6 |
|
Profit Numbers |
|||||||||||
|
Operating profit |
813 |
291 |
1,104 |
–5 |
1,099 |
638 |
419 |
1,056 |
28 |
5 |
4 |
|
Other non-operating income/expense, net |
–35 |
0 |
–35 |
–148 |
0 |
–148 |
–76 |
–76 |
|||
|
Finance income |
35 |
0 |
35 |
48 |
0 |
48 |
–27 |
–27 |
|||
|
Finance costs |
–70 |
0 |
–70 |
–59 |
0 |
–59 |
19 |
19 |
|||
|
Financial income, net |
–35 |
0 |
–35 |
–11 |
0 |
–11 |
>100 |
>100 |
|||
|
Profit before tax |
743 |
291 |
1,034 |
478 |
419 |
897 |
55 |
15 |
|||
|
Income tax expense |
–173 |
–98 |
–271 |
–65 |
–135 |
–200 |
>100 |
35 |
|||
|
Profit after tax |
570 |
193 |
763 |
413 |
284 |
697 |
38 |
9 |
|||
|
attributable to owners of parent |
572 |
193 |
765 |
414 |
284 |
698 |
38 |
10 |
|||
|
attributable to non-controlling interests |
–2 |
0 |
–2 |
0 |
0 |
0 |
>100 |
>100 |
|||
|
Key Ratios |
|||||||||||
|
Operating margin (in %) |
17.2 |
23.4 |
23.1 |
14.2 |
23.5 |
3.0pp |
–0.1pp |
–0.4pp | |||
|
Effective tax rate (in %) |
23.3 |
26.2 |
13.6 |
22.3 |
9.7pp |
3.9pp |
|||||
|
Earnings per share, basic (in €) |
0.48 |
0.64 |
0.35 |
0.58 |
38 |
9 |
|||||
|
1) Adjustments in the revenue line items are for software support revenue, cloud subscriptions and support 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 payment expenses, as well as restructuring expenses. | |
|
2) 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. | |
|
For a more detailed description of these adjustments and their limitations as well as our constant currency figures, see our Web site www.sap.com/corporate-en/investors/newsandreports/reporting-framework.epx under "Non-IFRS Measures, Adjustments and Full-Year Estimates". | |
|
Due to rounding, numbers may not add up precisely. |
|
Non-IFRS Adjustments – Actuals and Estimates | |||
|
€ millions |
Estimated Amounts for Full Year 2016 |
Q1 2016 |
Q1 2015 |
|
Operating profit (IFRS) |
813 |
638 | |
|
Revenue adjustments |
<20 |
1 |
6 |
|
Adjustment for acquisition-related charges |
680 to 730 |
170 |
183 |
|
Adjustment for share-based payment expenses |
650 to 690 |
109 |
179 |
|
Adjustment for restructuring |
40 to 60 |
11 |
51 |
|
Operating expense adjustments |
290 |
413 | |
|
Operating profit adjustments |
291 |
419 | |
|
Operating profit (non-IFRS) |
1,104 |
1,056 | |
|
Non-IFRS Adjustments by Functional Areas | ||||||||||
|
€ millions |
Q1 2016 |
Q1 2015 | ||||||||
|
IFRS |
Acquisition-related |
SBP1) |
Restruc-turing |
Non-IFRS |
IFRS |
Acquisition-related |
SBP1) |
Restruc-turing |
Non-IFRS | |
|
Cost of cloud and software |
–788 |
98 |
13 |
0 |
–677 |
–768 |
103 |
17 |
0 |
–647 |
|
Cost of services |
–860 |
3 |
16 |
0 |
–841 |
–821 |
21 |
32 |
0 |
–768 |
|
Research and development |
–709 |
2 |
25 |
0 |
–681 |
–694 |
15 |
39 |
0 |
–640 |
|
Sales and marketing |
–1,310 |
64 |
43 |
0 |
–1,203 |
–1,253 |
43 |
50 |
0 |
–1,160 |
|
General and administration |
–230 |
3 |
12 |
0 |
–216 |
–272 |
1 |
42 |
0 |
–229 |
|
Restructuring |
–11 |
0 |
0 |
11 |
0 |
–51 |
0 |
0 |
51 |
0 |
|
Other operating income/expense, net |
–6 |
0 |
0 |
0 |
–6 |
–1 |
0 |
0 |
0 |
–1 |
|
Total operating expenses |
–3,914 |
170 |
109 |
11 |
–3,624 |
–3,859 |
183 |
179 |
51 |
–3,446 |
|
1) Share based Payments | ||||||||||
|
If not presented in a separate line item in our income statement, the restructuring expenses would break down as follows: | ||
|
€ millions |
Q1 2016 |
Q1 2015 |
|
Cost of cloud and software |
1 |
7 |
|
Cost of services |
3 |
16 |
|
Research and development |
3 |
8 |
|
Sales and marketing |
3 |
15 |
|
General and administration |
1 |
5 |
|
Restructuring expenses |
11 |
51 |
|
Revenue by Region (IFRS and Non-IFRS) | |||||||||||
|
€ millions |
Q1 2016 |
Q1 2015 |
∆ in % | ||||||||
|
IFRS |
Adj.1) |
Non-IFRS1) |
Currency Impact2) |
Non-IFRS Constant Currency2) |
IFRS |
Adj.1) |
Non-IFRS1) |
IFRS |
Non-IFRS1) |
Non-IFRS Constant Currency2) | |
|
Cloud subscriptions and support revenue by region |
|||||||||||
|
EMEA |
161 |
0 |
161 |
1 |
162 |
108 |
1 |
108 |
49 |
49 |
50 |
|
Americas |
460 |
0 |
460 |
–5 |
455 |
351 |
5 |
356 |
31 |
29 |
28 |
|
APJ |
57 |
0 |
57 |
1 |
58 |
45 |
0 |
45 |
27 |
26 |
30 |
|
Cloud subscriptions and support revenue |
677 |
1 |
678 |
–2 |
676 |
503 |
6 |
509 |
35 |
33 |
33 |
|
Cloud and software revenue by region |
|||||||||||
|
EMEA |
1,686 |
0 |
1,686 |
29 |
1,715 |
1,562 |
1 |
1,563 |
8 |
8 |
10 |
|
Americas |
1,583 |
1 |
1,584 |
–20 |
1,564 |
1,516 |
5 |
1,521 |
4 |
4 |
3 |
|
APJ |
581 |
0 |
581 |
13 |
594 |
575 |
0 |
575 |
1 |
1 |
3 |
|
Cloud and software revenue |
3,850 |
1 |
3,851 |
23 |
3,874 |
3,653 |
6 |
3,659 |
5 |
5 |
6 |
|
Total revenue by region |
|||||||||||
|
Germany |
605 |
0 |
605 |
0 |
605 |
558 |
0 |
558 |
8 |
8 |
8 |
|
Rest of EMEA |
1,442 |
0 |
1,442 |
36 |
1,478 |
1,376 |
1 |
1,376 |
5 |
5 |
7 |
|
Total EMEA |
2,047 |
0 |
2,047 |
36 |
2,083 |
1,933 |
1 |
1,934 |
6 |
6 |
8 |
|
United States |
1,606 |
1 |
1,606 |
–26 |
1,580 |
1,463 |
5 |
1,468 |
10 |
9 |
8 |
|
Rest of Americas |
371 |
0 |
371 |
11 |
382 |
399 |
0 |
399 |
–7 |
–7 |
–4 |
|
Total Americas |
1,977 |
1 |
1,977 |
–15 |
1,962 |
1,862 |
5 |
1,867 |
6 |
6 |
5 |
|
Japan |
169 |
0 |
169 |
–8 |
161 |
155 |
0 |
155 |
9 |
9 |
4 |
|
Rest of APJ |
535 |
0 |
535 |
25 |
560 |
547 |
0 |
547 |
–2 |
–2 |
2 |
|
Total APJ |
704 |
0 |
704 |
17 |
721 |
702 |
0 |
702 |
0 |
0 |
3 |
|
Total revenue |
4,727 |
1 |
4,728 |
38 |
4,766 |
4,497 |
6 |
4,502 |
5 |
5 |
6 |
|
1) Adjustments in the revenue line items are for support revenue, cloud subscriptions and support 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. | |
|
2) Constant currency revenue figures are calculated by translating revenue 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. | |
|
For a more detailed description of these adjustments and their limitations as well as our constant currency figures, see our Web site www.sap.com/corporate-en/investors/newsandreports/reporting-framework.epx under "Non-IFRS Measures and Estimates". | |
|
Due to rounding, numbers may not add up precisely. |
|
Employees by Region and Functional Areas | ||||||||
|
Q1 2016 |
Q1 2015 | |||||||
|
Full-Time Equivalents |
EMEA |
Americas |
APJ |
Total |
EMEA |
Americas |
APJ |
Total |
|
Cloud and software |
6,121 |
4,008 |
5,094 |
15,224 |
6,000 |
3,289 |
5,211 |
14,501 |
|
Services |
6,941 |
4,326 |
3,903 |
15,169 |
7,226 |
4,936 |
2,967 |
15,129 |
|
Research and development |
9,717 |
4,364 |
7,095 |
21,177 |
9,160 |
4,029 |
5,911 |
19,100 |
|
Sales and marketing |
7,295 |
7,666 |
3,811 |
18,772 |
7,169 |
7,256 |
3,658 |
18,083 |
|
General and administration |
2,506 |
1,648 |
963 |
5,116 |
2,463 |
1,623 |
978 |
5,064 |
|
Infrastructure |
1,541 |
790 |
441 |
2,772 |
1,462 |
833 |
379 |
2,674 |
|
SAP Group |
34,121 |
22,802 |
21,307 |
78,230 |
33,479 |
21,967 |
19,104 |
74,551 |
|
Thereof acquisitions 1) |
4 |
25 |
0 |
29 |
0 |
0 |
0 |
0 |
|
SAP Group (average first three months) |
34,046 |
22,578 |
21,223 |
77,847 |
33,447 |
21,977 |
19,031 |
74,455 |
|
1) Acquisitions closed between January 1 and March 31 of the respective year. | ||||||||
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