-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UYKmxsjiWkc1xjnzSP4/9XwmppV3L1EUC5OEI4IpsMnQ0pnZmFho5XqVXQT6SjqH yNKQrJUJnr7Go7nvCWYfBA== 0000950123-00-000511.txt : 20000203 0000950123-00-000511.hdr.sgml : 20000203 ACCESSION NUMBER: 0000950123-00-000511 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000124 FILED AS OF DATE: 20000126 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SAP AKTIENGESELLSCHAFT SYSTEMS APPLICATIONS PRODUCTS IN DATA CENTRAL INDEX KEY: 0001000184 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 000000000 STATE OF INCORPORATION: I8 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: SEC FILE NUMBER: 001-14251 FILM NUMBER: 513574 BUSINESS ADDRESS: STREET 1: NEUROTTSTRABE 16 STREET 2: WALLDORF, FEDERAL REPUBLIC OF GERMAN CITY: NEW YORK STATE: NY ZIP: 69190 BUSINESS PHONE: 0114962277 MAIL ADDRESS: STREET 1: NEUROTTSTRASSE 16 CITY: WALLDORF D 69190 STATE: I8 6-K 1 SAP AKTIENGESELLSCHAFT: FORM 6-K 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the periods ended December 31, 1999 SAP AKTIENGESELLSCHAFT SYSTEME, ANWENDUNGEN, PRODUKTE IN DER DATENVERARBEITUNG (Exact name of registrant as specified in its charter) SAP CORPORATION SYSTEMS, APPLICATIONS AND PRODUCTS IN DATA PROCESSING (Translation of registrant's name into English) Neurottstrasse 16 69190 Walldorf Federal Republic of Germany (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F [X] Form 40-F [ ] Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes [ ] No [X] If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_______. 2 SAP AKTIENGESELLSCHAFT SYSTEME, ANWENDUNGEN, PRODUKTE IN DER DATENVERARBEITUNG FORM 6-K SAP Aktiengesellschaft Systeme, Anwendungen, Produkte in der Datenverarbeitung, a stock corporation organized under the laws of the Federal Republic of Germany (the "Company"), issued a press release, dated January 24, 2000 (the "Press Release"), announcing certain information for the periods ended December 31, 1999. The Press Release is attached as Exhibit 99.1 hereto and is incorporated by reference herein. Any statements contained in the Press Release 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 "believe," "estimate," "intend," "may," "will," "expect," "anticipate," and "project" and similar expressions as they relate to the Company are intended to identify such forward-looking statements. The Company 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 the Company's future financial results are discussed more fully in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC"), including the Company's Annual Report on Form 20-F for 1998 filed with the SEC on May 18, 1999. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. 1 3 EXHIBITS
Exhibit No. Exhibit - ----------- ------- 99.1 Press Release, dated January 24, 2000
2 4 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SAP AKTIENGESELLSCHAFT SYSTEME, ANWENDUNGEN, PRODUKTE IN DER DATENVERARBEITUNG (Registrant) By: /s/ Henning Kagermann __________________________________ Name: Prof. Dr. Henning Kagermann Title: Co-Chairman and CEO By: /s/ Dieter Matheis __________________________________ Name: Dieter Matheis Title: CFO Date: January 26, 2000 3 5 EXHIBIT INDEX
Exhibit No. Exhibit - ----------- ------- 99.1 Press Release, dated January 24, 2000
4 EX-99.1 2 PRESS RELEASE 1 EXHIBIT 99.1 PRESS INFORMATION [SAP LOGO] FOR IMMEDIATE RELEASE Contact: Gundolf Moritz SAP AG 011-49-6227-7-44872 -or- James P. Prout Taylor Rafferty Associates 212-889-4350 SAP ANNOUNCES 1999 PRELIMINARY RESULTS Solid financial performance; mySAP.com established as key strategic e-business initiative WALLDORF, Germany - January 24, 2000 -- SAP AG (NYSE: SAP), the leading provider of inter-enterprise software solutions, today announced solid results for 1999. Sales grew 18% over 1998 to Euro 5.11 billion (1998: Euro 4.32 billion). Pre-tax profit in 1999 before charges for the employee stock appreciation rights program (STAR) was up 18% to Euro 1.12 billion (1998: Euro 948 million); pre-tax profit including STAR grew 5% to Euro 981 million (1998: Euro 932 million). Net income for the year increased 14% to Euro 602 million (1998: Euro 527 million). On the basis of an increased number of shares issued (an average of 104.6 million in 1999 compared with an average of 104.4 million in 1998), earnings per share excluding charges for the STAR program rose 28% to Euro 6.58 (1998: Euro 5.14); earnings per share including STAR were up 14% to Euro 5.76 (1998: Euro 5.05). EXCEPTIONALLY STRONG FOURTH QUARTER SAP's 1999 results were driven by a strong fourth quarter in which sales rose 30% to Euro 1.65 billion over the same period in 1998 (Euro 1.27 billion). Product revenues in the quarter were up 43% to Euro 1.13 billion (1998: Euro 793 million) due mostly to an increase in license revenue of 45% to Euro 811 million (1998: Euro 559 million). In the quarter, mySAP.com products contributed Euro 129 million to license sales, most of which was booked in the month of December. In the future, SAP will disclose mySAP.com license sales. Consulting revenues grew 12% to Euro 408 million (1998: Euro 364 million) and training revenues decreased 14% to Euro 89 million (1998: Euro 104 million). In the fourth quarter, revenues in the Europe, the Middle East and Africa (EMEA) sales region increased 46% to Euro 785 million (1998: Euro 539 million), the Americas region rose 12% to Euro 683 million (1998: Euro 609 million), and in the Asia-Pacific region (APA) revenues were up 52% to Euro 167 million (1998: Euro 110 million). Pre-tax profits excluding charges for the STAR program grew 121% to Euro 602 million (1998: Euro 271 million); including STAR, pre-tax profit rose 79% to Euro 482 million (1998: Euro 270 million). Net income for the quarter increased 109% to Euro 317 million (1998: Euro 152 million). - more - 2 -2- SOLID FULL YEAR For 1999, product sales increased 14% to Euro 3.09 billion (1998: Euro 2.72 billion). Of this total, license revenue rose 2% to Euro 1.93 billion (1998: Euro 1.90 billion). Consulting revenues grew 38% to Euro 1.55 billion (1998: Euro 1.12 billion) and training revenue decreased 4% to Euro 395 million (1998: Euro 412 million). Breaking out geographic sales for the year: the EMEA region rose 28% to Euro 2.46 billion (1998: Euro 1.92 billion), the Americas region increased 7% to Euro 2.14 billion (1998: Euro 2.00 billion), and the APA region increased 27% to Euro 506 million (1998: Euro 397 million). Costs rose 26% in 1999 to Euro 4.31 billion (1998: Euro 3.42 billion); pre-tax margin excluding STAR was 22% and after STAR 19%. A lower than expected overall tax rate of 38.5% is anticipated, as opposed to 43.2% in 1998. Hasso Plattner, Co-Chairman and CEO of SAP AG commented, "In 1999, SAP delivered a comprehensive redesign of its product line, completed the transition to the internet and achieved a strong rebound in sales - all exceptional achievements in a challenging year." "Our powerful results in the fourth quarter and a healthy pipeline give us an excellent platform to continue SAP's product sales growth into 2000," said Henning Kagermann, Co-Chairman and CEO of SAP AG, "For 2000, we are anticipating that product revenues will grow faster than service revenues leading to an improved operating margin, before the impact of costs associated with the STAR program." In the first part of 2000, SAP expects that service revenue growth will probably be slower than seen in the past. The company also anticipates additional personnel and marketing costs associated with mySAP.com efforts, making it likely that cost growth before STAR in the first quarter will be a few percentage points higher than revenue growth. The company confirmed its expectation that revenues for 2001 will be approximately twice those achieved in 1998. LAUNCH OF MYSAP.COM Successfully building on its newly designed internet software solutions that make SAP products easier to learn, tailor and use, SAP delivered mySAP.com in September. mySAP.com provides an open, collaborative e-business environment of personalized solutions on demand. This enables companies of all sizes and industries to fully engage their employees, customers and partners to capitalize upon the new Internet economy. "By leveraging our deep customer relationships, we're going to make mySAP.com a central place for companies to work and collaborate in an open electronic environment," commented Kevin McKay, CEO of SAP America, "This is a natural extension of our ability to deliver better business solutions. When businesses look to harness the efficiencies and business opportunities offered by the internet, SAP will remain the first choice." - more - 3 -3- NEW EMPLOYEES AND STOCK OPTION PROGRAM In 1999, SAP continued to build out its infrastructure by adding new personnel. At the end of 1999, global headcount totaled 21,699, an increase of 12% over the end of 1998. The most additions were made to service and support, whose staff increased 14% to 10,957. As proposed in December, SAP shareholders approved the introduction of a stock option and convertible bond program named the SAP 2000 Long Term Incentive Plan (LTI Plan). The LTI plan will attract, retain and motivate senior managers and top performers to grow the value of the enterprise and to secure their commitment to the company. The new plan will augment the existing stock-based compensation package (STAR). In accordance with US GAAP, costs associated with the 1999 STAR program are estimated to be over Euro 300 million in the year 2000 based upon a recent SAP stock price of Euro 700, with approximately Euro 150 million of these costs to be reflected in the first quarter. 1999 HIGHLIGHTS AFTER ANNOUNCING ITS INTERNET STRATEGY IN MAY, SAP DELIVERED MYSAP.COM ON-SCHEDULE IN SEPTEMBER: mySAP.com provides an open collaborative e-business solutions environment of personalized solutions on demand. mySAP.com is comprised of the following four elements: o The mySAP.com Marketplace, a business-community portal serving as the central hub that enables bilateral and multilateral collaboration between and among enterprises. The mySAP.com Marketplace opened its doors to business in October 1999. There are now more than 46,000 registered Marketplace users. More than 3,200 companies representing over 19 industries have registered with the mySAP.com Marketplace. In December, SAP announced a global vertical Marketplace for chemical and pharmaceutical companies which will go live second quarter of 2000. In December, Neoforma.com, a healthcare industry e-commerce provider, licensed the mySAP.com marketplace to create a marketplace for the healthcare industry. Statoil, the world's second largest supplier of crude oil, and SAP announced in January to co-develop the first open global online marketplace for the oil and gas industry. o The mySAP.com Workplace, a business-oriented desktop portal customized for each user in a company. The Workplace provides employees with single-screen access to all the functions and data they need to do their job. o The mySAP.com e-business solutions: collaborative, role-based solutions for business intelligence, supply chain management, e-commerce, and customer relationship management that are fully integrated between enterprises and between providers and end consumers. o Application Hosting with mySAP.com, access to applications via networks, enabling cost-effective access to mySAP.com solutions within a very short timeframe. Over 8,000 users in North America have embraced Application Hosting with mySAP.com since the initiative was introduced in January 1999. Customers using Application Hosting with mySAP.com include REZsolutions Inc., Hirsh Industries and Visioneer. - more - 4 -4- KEY E-BUSINESS SOLUTIONS GAIN MOMENTUM; AVAILABLE THROUGH MYSAP.COM: o More than 1,100 installations to date for Business Intelligence with mySAP.com: The SAP Business Information Warehouse (SAP BW) is the analytical SAP software solution that supports management decision-making processes. Customers that use SAP BW include Clariant and Kimberly-Clark Corporation. o More than 350 installations for Supply Chain Management with mySAP.com: The SAP Advanced Planner and Optimizer (SAP APO) solution enables collaborative network optimization across the extended supply chain. Among the customers that have opted for the SAP APO solution are Goodyear and Lufthansa. o More than 400 installations for Customer Relationship Management with mySAP.com: CRM with mySAP.com enables customer value management through personalized interactions and collaborative e-business. Companies that are gaining an integrative view of their customers through mySAP.com CRM scenarios include Bertelsmann AG and Dow Corning. o Nearly 400 installations for e-commerce with mySAP.com: The mySAP.com e-commerce solutions support one-step business where real-time multiparty transactions can take place with a single click directly or via the mySAP.com Marketplace. Customers that have opted for SAP B2B Procurement, the mySAP.com buying solution to manage their Internet purchasing transactions include Visteon and Volvo. HUGE NUMBER OF ATTENDEES AT INTERNATIONAL USER CONFERENCES: SAP again attracted large numbers of customers, prospects and partners to its international SAPPHIRE events, with over 11,000 people attending SAPPHIRE in Nice and Singapore and over 18,000 people attending both SAPPHIRE'99, the annual SAP Americas customer conference, and SAP TechEd'99, a conference for software developers that was held the previous week. Users' overwhelming response demonstrates the exceptionally high levels of acceptance of SAP products and further illustrates the long-term relationships SAP enjoys with its customers. - more - 5 -5- 1999 PRELIMINARY RESULTS
1999 1998 % Change ------ ------ -------- Revenues (Euro mill.) 5,110 4,316 18 Income before taxes (Euro mill.) 981 932 5 Net profit (Euro mill.) 602 527 14 Earnings per share (Euro) 5.76 5.05 14 Headcount as of Dec. 31 21,699 19,308 12 - in Germany 8,912 7,679 16
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 "believe," "estimate," "intend," "may," "will," "expect," and "project" and similar expressions as they relate to the Company are intended to identify such forward-looking statements. The Company 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 the Company's future financial results are discussed more fully in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC"), including the Company's Annual Report on Form 20-F for 1998 filed with the SEC on May 18, 1999. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates SAP AG preference and common shares are listed on the Frankfurt Stock Exchange as well as a number of other exchanges. In the US, SAP's American Depositary Receipts (ADRs), each worth one-twelfth of a preference share, trade on the New York Stock Exchange under the symbol "SAP". SAP is a component of the DAX, the index of 30 German blue chip companies. Information on the SAP AG preference shares is available on Bloomberg under the symbol SAP3 GR, on Reuters under SAPG_p.F or DE and on Quotron under SAGVD.EU. Information on the SAP common shares is available on Bloomberg under the symbol SAP GR, on Reuters under SAPG.F and on Quotron under SAGR.EU. Additional information is available on SAP AG's home page: http://www.sap.com. # # # (Tables to follow) - more - 6 -6- 1999 REVENUES BY QUARTER (IN EURO MILLIONS)
Q1 1999 Q2 1999 Q3 1999 Q4 1999 1999 ------- ------- ------- ------- ----- TOTAL REVENUES 1,076 1,260 1,123 1,651 5,110 Product revenues 615 736 611 1,132 3,094 Consulting revenues 343 398 398 408 1,547 Training revenues 110 106 90 89 395 Other revenues 8 20 24 22 74 PRETAX PROFIT 172 248 79 482 981
FOURTH QUARTER REVENUES COMPARISON 1999 / 1998 (IN EURO MILLIONS)
Q4 1999 Q4 1998 Change % Change ------- ------- ------- -------- TOTAL REVENUES 1,651 1,273 378 30 Product revenues 1,132 793 339 43 Consulting revenues 408 364 44 12 Training revenues 89 104 -15 -14 Other revenues 22 12 10 83 PRETAX PROFIT 482 270 212 79
EMPLOYEES WORLDWIDE AT YEAR END
December 31, 1999 December 31, 1998 % Change ----------------- ----------------- -------- GROUP 21,699 19,308 12 EMEA 13,074 10,960 19 - Germany 8,912 7,580 18 Americas 6,005 5,984 0 APA 2,620 2,364 11 RESEARCH & DEVELOPMENT 5,403 4,818 12 SERVICE & SUPPORT 10,957 9,570 14 SALES/MARKETING 3,809 3,503 9
- more - 7 -7- SAP AG PRELIMINARY INCOME STATEMENT - YEAR (IN EURO MILLIONS)
1999 1998 DELTA ------ ------ ----- Product revenue 3,094 2,720 14% Consulting revenue 1,547 1,122 38% Training revenue 395 412 -4% Service revenue 1,942 1,534 27% Other revenue 74 62 19% ------ ------ ----- TOTAL REVENUE 5,110 4,316 18% ------ ------ ----- Cost of product -527 -369 43% Cost of service -1,622 -1,256 29% Research and development -747 -573 30% Sales and marketing -1,133 -965 17% General and administration -259 -208 25% Other income/expenses, net -25 -44 -43% ------ ------ ----- TOTAL OPERATING EXPENSE -4,313 -3,415 26% ------ ------ ----- OPERATING INCOME 797 901 -12% ------ ------ ----- Other non-operating income/ expenses, net -51 17 -400% Financial income, net 235 14 1579% ------ ------ ----- INCOME BEFORE INCOME TAXES 981 932 5% ------ ------ ----- Income taxes -378 -403 -6% Minority interest -1 -2 -50% ------ ------ ----- NET INCOME 602 527 14% ------ ------ ----- DSO (IN DAYS) 103 104 ------ ------
FIGURES ARE REPORTED ACCORDING TO US-GAAP. - more - 8 -8- SAP AG PRELIMINARY INCOME STATEMENT - FOURTH QUARTER (IN EURO MILLIONS)
1999 1998 DELTA ------ ------ ----- Product revenue 1,132 793 43% Consulting revenue 408 364 12% Training revenue 89 104 -14% Service revenue 497 468 6% Other revenue 22 12 83% ------ ------ ----- TOTAL REVENUE 1,651 1,273 30% ------ ------ ----- Cost of product -221 -124 78% Cost of service -415 -376 10% Research and development -266 -170 56% Sales and marketing -343 -251 37% General and administration -91 -54 69% Other income/expenses, net 3 -25 -112% ------ ------ ----- TOTAL OPERATING EXPENSE -1,333 -1,000 33% ------ ------ ----- OPERATING INCOME 318 273 16% ------ ------ ----- Other non-operating income/ expenses, net -32 -6 433% Financial income, net 196 3 6433% ------ ------ ----- INCOME BEFORE INCOME TAXES 482 270 79% ------ ------ ----- Income taxes -166 -116 43% Minority interest 1 -2 -150% ------ ------ ----- NET INCOME 317 152 109% ------ ------ ----- DSO (IN DAYS) 103 104 ------ ------
FIGURES ARE REPORTED ACCORDING TO US-GAAP. - more - 9 -9- SAP GROUP PRELIMINARY CONSOLIDATED BALANCE SHEET (IN EURO MILLIONS) ASSETS
12/31/1999 12/31/1998 ---------- ---------- INTANGIBLE ASSETS 120 75 PROPERTY, PLANT AND EQUIPMENT 794 645 FINANCIAL ASSETS 609 184 ----- ----- FIXED ASSETS 1,523 904 INVENTORIES/ACCOUNTS RECEIVABLE AND OTHER ASSETS 2,102 1,676 LIQUID ASSETS 810 670 ----- ----- CURRENT ASSETS 2,912 2,346 DEFERRED TAXES 317 182 PREPAID EXPENSES AND DEFERRED CHARGES 57 21 ----- ----- TOTAL ASSETS 4,809 3,453 ===== =====
SHAREHOLDERS' EQUITY AND LIABILITIES
12/31/1999 12/31/1998 ---------- ---------- SHAREHOLDERS' EQUITY 2,559 1,818 MINORITY INTEREST 9 7 RESERVES AND ACCRUED LIABILITIES 1,265 721 OTHER LIABILITIES 666 600 DEFERRED INCOME 310 307 ----- ----- TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES 4,809 3,453 ===== =====
FIGURES ARE REPORTED ACCORDING TO US-GAAP. -----END PRIVACY-ENHANCED MESSAGE-----