EX-99.1 2 tm2113763d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

Quarterly Statement Q1 2021

 

Stellar Start to 2021

Fastest Growth in New Cloud Business in Five Years

Reaccelerates Current Cloud Backlog, Up 19% at Constant

Currencies, to €7.6 Billion

 

·S/4HANA Current Cloud Backlog Up 43% At Constant Currencies
Highlighting SAP’s Accelerated Cloud Transition
  
·IFRS EPS Up 29%; Non-IFRS EPS Up 63%
  
·Operating Cash Flow Up 3% To €3.09 Billion; Free Cash Flow Up 10% to €2.85 Billion

 

 

„  We are seeing very strong order entry growth across our applications portfolio. And we are just getting started. Our new offering ‘RISE with SAP’ is rapidly becoming a massive accelerator to our customers’ business transformations with our platform at the center. Together with our unique ecosystem of more than 22,000 partners and with a strong innovation pipeline for the year, we are well on track with our strategy to deliver robust cloud growth.”   „  The first quarter of 2021 was unique in many ways. We had the highest order entry growth across cloud and software in five years while posting the strongest increase in Non-IFRS operating profit and margin in a decade. Free cash flow was up double-digit compared to a record prior year. In the mid term SAP’s expedited shift to the cloud will accelerate topline growth and significantly increase the resiliency and predictability of our business.”
     
Christian Klein, CEO   Luka Mucic, CFO

 

SAP Quarterly Statement Q1 20211

 

 

Walldorf, Germany – April 22, 2021

SAP SE (NYSE: SAP) today announced its financial results for the first quarter ended March 31, 2021.

 

Business Update First Quarter 2021

 

SAP saw a sharp acceleration in new cloud business across its cloud portfolio including Qualtrics, Human Experience Management, Procurement, Customer Experience, Business Technology Platform, as well as a strong start for ‘RISE with SAP’ which is driving customers’ business transformations in the cloud. Software licenses were up 7% (IFRS) and had strong, double-digit growth of 11% (Non-IFRS at constant currencies). SAP had significant competitive wins in ERP, digital supply chain and across its broader cloud solution portfolio.

 

Despite the continued impact of global travel restrictions on Concur’s business, SAP’s cloud revenue growth was resilient in the first quarter, up 7% (IFRS) and up 13% (Non-IFRS at constant currencies). SaaS/PaaS cloud revenue outside the Intelligent Spend business was up 17% (IFRS) and up 24% (Non-IFRS at constant currencies). Looking forward, SAP’s strong new cloud business performance is expected to reaccelerate cloud revenue growth.

 

Throughout the COVID-19 crisis, SAP continues to serve its customers effectively with an embedded virtual sales and remote implementation strategy. The company retains a disciplined approach to hiring and discretionary spend while capturing natural savings e.g. from lower travel, facility-related costs and virtual events. The prior year included a cost of approximately €36 million in relation to the cancellation of its in-person annual SAPPHIRE NOW and other customer events, as well as normal travel behavior.

 

Highlights

 

·Key customer wins included: Unilever, BioNTech, IKEA, Nippon Express, BMW, Yamaha Motor Company, Toshiba Corporation, AstraZeneca, Zalando, Deichmann, B. Braun, and Clemson University. AkzoNobel, CONA Services, Daikin Chemicals, Olam International, Google, Bosch Siemens Hausgeräte, Douglas, LIVEKINDLY Collective, Peloton, and Chobani went live on SAP solutions.

 

·SAP launched "RISE with SAP" on January 27, a simplified pathway for customers to transform their business in the cloud. In the first quarter alone, SAP closed more than 100 transactions. Customers such as Carrefour Brazil, Sono Motors, KIA Chile, Hillrom, and Grupo Feromax chose “RISE with SAP” in the first quarter.

 

·In total, more than 400 S/4HANA customers were added in the quarter, taking total adoption to more than 16,400 customers, up more than 16% year over year, of which more than 9,600 are live. In the first quarter, more than 50% of the additional S/4HANA customers were net new.

 

·The acquisition of Signavio was completed on March 5, significantly deepening SAP’s business process intelligence capabilities.

 

·SAP closed the acquisition on AppGyver, a no-code development pioneer. AppGyver’s solutions will become part of the SAP Business Technology Platform.

 

·SAP announced a strategic partnership with Dediq to jointly expand SAP’s financial services portfolio with a significant investment in developing new solutions to better serve the rapidly changing banking and insurance industry. The new solutions will be built as part of SAP’s industry cloud solutions. SAP and Dediq intend to form a dedicated Financial Services Industry (FSI) Unit, which will be jointly owned by the two companies. Pending regulatory approval, the new FSI Unit is expected to be established in September 2021.

 

·SAP proposed a dividend of €1.85 per share for fiscal year 2020 representing a year-over-year increase of €0.27 or 17%. The dividend is subject to shareholder approval at the upcoming AGM to be held on May 12, 2021.

 

SAP Quarterly Statement Q1 20212

 

 

Financial Performance First Quarter 20211

 

Current cloud backlog was up 15% to €7.63 billion and up 19% (at constant currencies). Cloud revenue was up 7% year over year to €2.14 billion (IFRS), up 7% to €2.15 billion (non-IFRS) and up 13% (non-IFRS at constant currencies). Software licenses revenue was up 7% year over year to €0.48 billion (IFRS and non-IFRS) and up 11% (non-IFRS at constant currencies). Cloud and software revenue was up 1% to €5.43 billion (IFRS and non-IFRS) and up 6% (non-IFRS at constant currencies). Services revenue was down 18% year over year to €0.9 billion (IFRS and non-IFRS) and down 14% (non-IFRS at constant currencies). This revenue decline reflects the November 2020 divestiture of SAP Digital Interconnect, which contributed approximately €90 million of services revenue (IFRS and non-IFRS) in the first quarter of 2020. Total revenue was down 3% year over year to €6.35 billion (IFRS and non-IFRS) and up 2% (non-IFRS at constant currencies).

 

The share of more predictable revenue2 grew by approximately 2 percentage points year over year to approximately 78% in the first quarter.

 

IFRS operating profit decreased 21% to €0.96 billion and IFRS operating margin decreased by 3.4 percentage points to 15.1% due to higher share-based compensation expenses (primarily related to Qualtrics IPO awards) and restructuring expenses related to the accelerated harmonization of SAP’s cloud delivery infrastructure. Non-IFRS operating profit increased 17% to €1.74 billion, up 24% (non-IFRS at constant currencies) and operating margin increased by 4.7 percentage points to 27.4%, up 4.9 percentage points (non-IFRS at constant currencies).

 

Earnings per share increased 29% to €0.88 (IFRS) and increased 63% to €1.40 (non-IFRS) reflecting another strong contribution from Sapphire Ventures.

 

Operating cash flow for the first quarter was €3.09 billion. Free cash flow increased 10% year over year to €2.85 billion. Cash flow was positively impacted by lower share-based and restructuring payments. Free cash flow was further supported by a decline in capex. At quarter end, net debt was –€2.66 billion.

 

Expanded Financial Disclosure – SAP’s Accelerated Cloud Transition

 

Starting with the first quarter 2021, SAP is expanding its financial disclosure to provide investors with transparency on the transition of its core ERP business to the cloud. Specifically, the Company is disclosing current cloud backlog and cloud revenue contributed by SAP S/4HANA Cloud, along with nominal and constant currencies year-over-year growth rates.

 

In the first quarter S/4HANA current cloud backlog was up 39% to €1.04 billion and up 43% (at constant currencies). S/4HANA cloud revenue was up 36% to €227 million (IFRS and non-IFRS) and up 43% (at constant currencies).

 

SAP S/4HANA Cloud represents SAP’s cloud offering for core ERP processes. It mainly includes cloud solutions for financial management, supply chain management, engineering and manufacturing, order management and asset management, as well as associated data management, analytics, development and integration capabilities.

 

“RISE with SAP “, SAP’s holistic offering for business transformation in the cloud, is an important driver of S/4HANA Cloud and Business Technology Platform adoption.

 

 

1 The Q1 2021 results were also impacted by other effects. For details please refer to the disclosures on page 24 of this document.

2 Share of more predictable revenue is the total of non-IFRS cloud revenue and non-IFRS software support revenue as a percentage of total revenue.

 

SAP Quarterly Statement Q1 20213

 

 

 

Segment Performance First Quarter 2021

 

SAP’s three reportable segments “Applications, Technology & Support”, “Qualtrics” and “Services” showed the following performance: 

 

Applications, Technology & Support (AT&S)

 

Segment revenue in AT&S was down 1% to €5.31 billion year over year (up 4% at constant currencies). Segment performance was driven by strong double-digit cloud revenue growth in S/4HANA Cloud, Digital Supply Chain, Business Technology Platform, and Customer Experience, in particular ecommerce. Software licenses revenue grew sharply driven by a significant number of ERP and supply chain competitive wins against peers. Segment support revenues were flat at constant currencies (year over year) reflecting high retention rates coupled with the shift of some support revenue to cloud.

 

Qualtrics

 

Qualtrics segment revenue was up 25% to €202 million year over year (up 37% at constant currencies). The strong growth was driven by companies using Qualtrics experience data and insights to drive employee retention and engagement, to find new customers and strengthen relationships to keep the ones they already have. LIXIL, Singapore Post, Bank of Montreal, Los Angeles County Public Health, Mitsubishi Electric Corporation, Royal Caribbean International, and many others selected Qualtrics Experience Management Solutions.

 

Services

 

Services segment revenue was down 12% to €800 million year over year (down 8% at constant currencies). The services implementation business continues to demonstrate its resilience and flexibility with SAP’s shift to remote delivery, and SAP’s premium services remain in high demand. However, SAP’s training business continues to be impacted due to delays in re-opening of global training centers.

 

 

Segment Results at a Glance

 

First Quarter 2021

 

  Applications, Technology & Support Qualtrics Services

€ million, unless otherwise stated

(Non-IFRS)

Actual

Currency

 ∆ in %

∆ in %

const.
curr.

Actual

Currency

 ∆ in %

∆ in %

const.
curr.

Actual

Currency

 ∆ in %

∆ in %

const.
curr.

Cloud revenue 1,958 4 10 160 33 45 0 NA NA
Segment revenue 5,314 –1 4 202 25 37 800 –12 –8
Segment profit (loss) 2,127 8 13 13 <-100 <-100 170 26 33
Cloud gross margin (in %) 68.8 –0.1pp –0.2pp 92.2 1.4pp 1.5pp NM1) NM1) NM1)
Segment margin (in %) 40.0 3.1pp 3.2pp 6.4 16.5pp 15.6pp 21.2 6.4pp 6.5pp

 

1) NM = not meaningful

 

 

 

Regional Revenue Performance First Quarter 2021

 

SAP had a strong performance across all of its regions.

 

In the EMEA region, cloud and software revenue increased 5% (IFRS) and 7% (non-IFRS at constant currencies). Cloud revenue increased 21% (IFRS) and 24% (non-IFRS at constant currencies) with Germany and Switzerland being highlights.

 

In the Americas region, cloud and software revenue decreased 6% (IFRS) and was up 3% (non-IFRS at constant currencies). Cloud revenue decreased 2% (IFRS) and was up 7% (non-IFRS at constant currencies). Canada and Mexico had a robust performance.

 

In the APJ region, cloud and software revenue increased 7% (IFRS) and 11% (non-IFRS at constant currencies). Cloud revenue increased 14% (IFRS) and 18% (non-IFRS at constant currencies) with Japan, Australia and Singapore being highlights.

 

SAP Quarterly Statement Q1 20214

 

 

Financial Results at a Glance

 

First Quarter 2021

 

  IFRS Non-IFRS1)
€ million, unless otherwise stated Q1 2021 Q1 2020 ∆ in % Q1 2021 Q1 2020 ∆ in % ∆ in % const. curr.
Current cloud backlog2) NA NA NA 7,628 6,634 15 19
Cloud revenue 2,145 2,011 7 2,147 2,012 7 13
Software licenses and support revenue 3,283 3,386 –3 3,283 3,386 –3 1
Cloud and software revenue 5,428 5,397 1 5,431 5,398 1 6
Total revenue 6,348 6,521 –3 6,350 6,522 –3 2
Share of more predictable revenue (in %) 78 76 2pp 78 76 2pp  
Operating profit (loss) 960 1,210 –21 1,741 1,482 17 24
Profit (loss) after tax 1,070 811 32 1,722 1,015 70  
Basic earnings per share (in €) 0.88 0.68 29 1.40 0.85 63  
Number of employees (FTE, March 31) 103,142 101,150 2 NA NA NA NA

 

1) For a breakdown of the individual adjustments see table “Non-IFRS Adjustments by Functional Areas” in this Quarterly Statement.

 

2) As this is an order entry metric, there is no IFRS equivalent.

 

Due to rounding, numbers may not add up precisely.

 

SAP Quarterly Statement Q1 20215

 

 

Business Outlook 2021

 

SAP raised its full-year 2021 outlook on April 13 reflecting the strong new cloud business performance which is expected to reaccelerate cloud revenue growth. The Company continues to expect a software licenses revenue decline for the full year as more customers turn to the “RISE with SAP” subscription offering for their mission-critical core processes. This outlook also continues to assume the COVID-19 crisis will begin to recede as vaccine programs roll out globally, leading to a gradually improving global demand environment in the second half of 2021.

 

SAP expects:

 

·€9.2 – 9.5 billion non-IFRS cloud revenue at constant currencies (2020: €8.09 billion), up 14% to 18% at constant currencies. The previous range was €9.1 – 9.5 billion at constant currencies.
·€23.4 – 23.8 billion non-IFRS cloud and software revenue at constant currencies (2020: €23.23 billion), up 1% to 2% at constant currencies. The previous range was €23.3 – 23.8 billion at constant currencies.
·€7.8 – 8.2 billion non-IFRS operating profit at constant currencies (2020: €8.28 billion), down 1% to 6% at constant currencies.
·The share of more predictable revenue (defined as the total of cloud revenue and software support revenue) to reach approximately 75% (2020: 72%).

 

The Company continues to expect operating cash flow of approximately €6.0 billion (2020 €7.2 billion) primarily reflecting moderately lower profit, higher expected income tax payments and adverse currency exchange movements. Free cash flow is expected above €4.5 billion (2020 €6.0 billion), also impacted by a modest increase in capex.

 

While SAP’s full-year 2021 business outlook is at constant currencies, actual currency reported figures are expected to be impacted by currency exchange rate fluctuations as the Company progresses through the year. See the table below for the Q2 and FY 2021 expected currency impacts.

 

Expected Currency Impact Based on March 2021 Level for the Rest of the Year
In percentage points Q2 FY
Cloud revenue -6pp to -4pp -4pp to -2pp
Cloud and software revenue -5pp to -3pp -3pp to -1pp
Operating profit -5pp to -3pp -3pp to -1pp

 

 

SAP focuses on three non-financial targets for 2021: customer loyalty, employee engagement, and carbon emissions. SAP continues to aim for:

 

·a Customer Net Promoter Score of 5 to 10 in 2021,
·an Employee Engagement Index in a range of 84% to 86%, and
·net greenhouse gas emissions of 145 kt in 2021.

 

SAP Quarterly Statement Q1 20216

 

 

Additional Information

 

This Quarterly Statement and all information therein is unaudited.

 

Definition of key growth metrics

Current cloud backlog (CCB) is the contractually committed cloud revenue we expect to recognize over the upcoming 12 months as of a specific key date. Thus, it is a subcomponent of our overall remaining performance obligations following IFRS 15.120. For CCB, we take into consideration committed deals only. CCB can be regarded as a lower boundary for cloud revenue to be recognized over the next 12 months, as it excludes utilization-based models without pre-commitments and committed deals, both new and renewal, closed after the key date. For our committed cloud business, we believe the CCB is a valuable indicator of go-to-market success, as it reflects both new contracts closed as well as existing contracts renewed.

 

Share of more predictable revenue is the total of non-IFRS cloud revenue and non-IFRS software support revenue as a percentage of total revenue.

 

For explanations on other key growth metrics please refer to the performance management section of SAP’s Integrated Report 2020, which can be found at www.sap.com/investor.

 

Webcast

SAP senior management will host a financial analyst conference call on Thursday, April 22, at 2:00 PM (CEST) / 1:00 PM (BST) / 8:00 AM (Eastern) / 5:00 AM (Pacific), The conference will be webcast live on the Company’s website at www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the first quarter results can be found at www.sap.com/investor.

 

Financial Analyst and Investor Conference

SAP will hold a virtual financial analyst event on Tuesday, June 15, in conjunction with its annual SAPPHIRE NOW conference kicking off on June 2nd https://events.sap.com/sapandasug/en/home.

 

About SAP

SAP’s strategy is to help every business run as an intelligent enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers’ businesses into intelligent enterprises. SAP helps to give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want – without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, SAP helps the world run better and improve people’s lives. For more information, visit http://www.sap.com.

 

For more information, financial community only:

Stefan Gruber +49 (6227) 7-44872 investor@sap.com, CET  

Follow SAP Investor Relations on Twitter at @sapinvestor.

 

For more information, press only:

Joellen Perry +1 (650) 445-6780 joellen.perry@sap.com, PT  
Marcus Winkler +49 (6227) 7-67497 marcus.winkler@sap.com, CET  

 

For customers interested in learning more about SAP products:

Global Customer Center: +49 180 534-34-24 
United States Only: +1 (800) 872-1SAP (+1-800-872-1727) 

 

Note to editors:

To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels. To view video stories on diverse topics, visit www.sap-tv.com. From this site, you can embed videos into your own Web pages, share video via e-mail links and subscribe to RSS feeds from SAP TV.

 

SAP Quarterly Statement Q1 20217

 

 

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.

© 2021 SAP SE. All rights reserved.

 

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE. The information contained herein may be changed without prior notice.

Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary.

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SAP Quarterly Statement Q1 20218

 

 

Contents

 

Financial and Non-Financial Key Facts  (IFRS and Non-IFRS) 10
   
Primary Financial Statements of SAP Group (IFRS) 12
(A) Consolidated Income Statements 12
(B) Consolidated Statements of Financial Position 13
(C) Consolidated Statements of Cash Flows 14
     
Non-IFRS Numbers 15
(D) Basis of Non-IFRS Presentation 15
(E) Reconciliation from Non-IFRS Numbers to IFRS Numbers 16
(F) Non-IFRS Adjustments – Actuals and Estimates 17
(G) Non-IFRS Adjustments by Functional Areas 17
     
Disaggregations 19
(H) Segment Reporting 19
(I) Reconciliation of Cloud Revenues and Margins 21
(J) Revenue by Region (IFRS and Non-IFRS) 22
(K) Employees by Region and Functional Areas 23
     
Other Disclosures 24
(L) Financial Income, Net 24
(M) Business Combinations 24
(N) Qualtrics Initial Public Offering (IPO) 24
(O) Share Based Payments 24
(P) Financial Liabilities 24

 

SAP Quarterly Statement Q1 20219

 

 

Financial and Non-Financial Key Facts
(IFRS and Non-IFRS)

 

€ millions, unless otherwise stated  

Q1

2020

  

Q2

2020

  

Q3

2020

  

Q4

2020

  

TY

2020

  

Q1

2021

Revenues                        
Cloud (IFRS)   2,011   2,044   1,984   2,041   8,080   2,145
Cloud (non-IFRS)   2,012   2,044   1,984   2,044   8,085   2,147
% change – yoy   27   19   10   7   15   7
% change constant currency – yoy   25   18   14   13   18   13
S/4HANA Cloud (IFRS)   168   NA   NA   NA   NA   227
S/4HANA Cloud (non-IFRS)   168   NA   NA   NA   NA   227
% change – yoy   NA   NA   NA   NA   NA   36
% change constant currency – yoy   NA   NA   NA   NA   NA   43
Software licenses (IFRS)   451   773   714   1,703   3,642   483
Software licenses (non-IFRS)   451   773   714   1,703   3,642   483
% change – yoy   –31   –18   –23   –15   –20   7
% change constant currency – yoy   –31   –18   –19   –11   –17   11
Software support (IFRS)   2,934   2,892   2,845   2,835   11,506   2,801
Software support (non-IFRS)   2,934   2,892   2,845   2,835   11,506   2,801
% change – yoy   3   1   –2   –4   0   –5
% change constant currency – yoy   2   2   1   0   1   0
Software licenses and support (IFRS)   3,386   3,665   3,559   4,538   15,148   3,283
Software licenses and support (non-IFRS)   3,386   3,665   3,559   4,538   15,148   3,283
% change – yoy   –3   –4   –7   –8   –6   –3
% change constant currency – yoy   –4   –3   –4   –4   –4   1
Cloud and software (IFRS)   5,397   5,709   5,544   6,579   23,228   5,428
Cloud and software (non-IFRS)   5,398   5,709   5,544   6,582   23,233   5,431
% change – yoy   6   3   –2   –4   1   1
% change constant currency – yoy   5   3   2   1   3   6
Total revenue (IFRS)   6,521   6,743   6,535   7,538   27,338   6,348
Total revenue (non-IFRS)   6,522   6,744   6,535   7,541   27,343   6,350
% change – yoy   7   1   –4   –6   –1   –3
% change constant currency – yoy   5   1   0   –2   1   2
Share of more predictable revenue (IFRS, in %)   76   73   74   65   72   78
Share of more predictable revenue (non-IFRS, in %)   76   73   74   65   72   78
                         
Profits                        
Operating profit (loss) (IFRS)   1,210   1,284   1,473   2,657   6,623   960
Operating profit (loss) (non-IFRS)   1,482   1,964   2,069   2,772   8,287   1,741
% change   1   8   –1   –2   1   17
% change constant currency   0   7   4   3   4   24
Profit (loss) after tax (IFRS)   811   885   1,652   1,934   5,283   1,070
Profit (loss) after tax (non-IFRS)   1,015   1,395   2,098   2,026   6,534   1,722
% change   –6   6   34   –7   6   70
                         
Margins                        
Cloud gross margin (IFRS, in %)   66.4   66.0   66.4   67.6   66.6   67.2
Cloud gross margin (non-IFRS, in %)   69.3   69.5   69.7   70.3   69.7   69.6
Software license and support gross margin (IFRS, in %)   85.2   86.4   86.7   88.2   86.7   85.7
Software license and support gross margin (non-IFRS, in %)   85.7   87.4   87.6   88.5   87.4   86.3
Cloud and software gross margin (IFRS, in %)   78.2   79.1   79.4   81.8   79.7   78.4
Cloud and software gross margin (non-IFRS, in %)   79.6   81.0   81.2   82.8   81.2   79.7
Gross margin (IFRS, in %)   68.3   69.9   71.1   74.8   71.2   70.3
Gross margin (non-IFRS, in %)   69.8   72.6   73.7   75.8   73.1   72.3
Operating margin (IFRS, in %)   18.6   19.0   22.5   35.2   24.2   15.1
Operating margin (non-IFRS, in %)   22.7   29.1   31.7   36.8   30.3   27.4

 

SAP Quarterly Statement Q1 202110

 

 

€ millions, unless otherwise stated  

Q1

2020

  

Q2

2020

  

Q3

2020

  

Q4

2020

  

TY

2020

  

Q1

2021

AT&S segment – Cloud gross margin (in %)   68.9   69.1   69.2   69.5   69.2   68.8
AT&S segment – Segment gross margin (in %)   78.5   80.1   80.6   82.5   80.5   78.9
AT&S segment – Segment margin (in %)   36.9   43.5   43.4   48.4   43.3   40.0
Services segment – Services gross margin (in %)   30.1   36.0   38.9   33.2   34.4   36.7
Services segment – Segment gross margin (in %)   26.8   33.7   36.5   30.1   31.7   32.8
Services segment – Segment margin (in %)   14.8   19.7   23.9   19.2   19.3   21.2
Qualtrics segment – Cloud gross margin (in %)   90.8   91.0   90.9   94.1   91.8   92.2
Qualtrics segment – Segment gross margin (in %)   75.4   78.6   79.1   77.4   77.6   79.6
Qualtrics segment – Segment margin (in %)   –10.1   1.4   4.7   0.9   –0.6   6.4
                         
Key Profit Ratios                        
Effective tax rate (IFRS, in %)   27.7   33.1   20.2   28.5   26.8   20.0
Effective tax rate (non-IFRS, in %)   27.2   30.3   21.3   28.2   26.5   18.7
                         
Earnings per share, basic (IFRS, in €)   0.68   0.73   1.32   1.62   4.35   0.88
Earnings per share, basic (non-IFRS, in €)   0.85   1.17   1.70   1.70   5.41   1.40
                         
Order Entry and current cloud backlog                        
Current cloud backlog   6,634   6,638   6,599   7,155   7,155   7,628
% change – yoy   25   20   10   7   7   15
% change constant currency – yoy   24   21   16   14   14   19
S/4HANA Current cloud backlog   744   NA   NA   NA   NA   1,036
% change – yoy   NA   NA   NA   NA   NA   39
% change constant currency – yoy   NA   NA   NA   NA   NA   43
Orders – number of cloud deals (in transactions)   3,113   3,755   3,975   6,045   16,888   4,155
Share of cloud orders greater than €5 million based on total cloud order entry volume (in %)   28   28   28   31   29   27
Share of cloud orders smaller than €1 million based on total cloud order entry volume (in %)   37   35   36   32   34   39
Orders – number of on-premise software deals (in transactions)   10,517   9,175   11,006   14,918   45,616   9,687
Share of orders greater than €5 million based on total software order entry volume (in %)   24   34   30   29   30   23
Share of orders smaller than €1 million based on total software order entry volume (in %)   42   38   37   32   36   42
                         
Liquidity and Cash Flow                        
Net cash flows from operating activities   2,984   788   1,321   2,100   7,194   3,085
Capital expenditure   –333   –164   –155   –164   –816   –153
Payments of lease liabilities   –72   –84   –115   –107   –378   –84
Free cash flow   2,580   540   1,052   1,829   6,000   2,848
% of total revenue (IFRS)   40   8   16   24   22   45
% of profit after tax (IFRS)   318   61   64   95   114   266
Group liquidity   7,872   7,401   7,760   6,781   6,781   11,573
Financial debt (–)   –13,700   –14,855   –14,649   –13,283   –13,283   –14,230
Net debt (–)   –5,827   –7,454   –6,889   –6,503   –6,503   –2,658
                         
Financial Position                        
Cash and cash equivalents   7,816   6,205   7,434   5,311   5,311   10,332
Goodwill   29,731   29,214   28,184   27,560   27,560   29,374
Total assets   62,947   60,709   59,278   58,472   58,472   66,495
Contract liabilities (current)   6,726   5,791   4,237   4,150   4,150   6,800
Equity ratio (total equity in % of total assets)   49   48   50   51   51   52
                         
Non-Financials                        
Number of employees (quarter end)1)   101,150   101,379   101,450   102,430   102,430   103,142
Employee retention (in %, rolling 12 months)   93.3   93.9   94.8   95.3   95.3   95.4
Women in management (in %, quarter end)   26.8   27.3   27.3   27.5   27.5   27.6
Greenhouse gas emissions (in kilotons)   65   25   25   20   135   30

 

1) In full-time equivalents.

 

Due to rounding, numbers may not add up precisely.

 

SAP Quarterly Statement Q1 202111

 

 

Primary Financial Statements of SAP Group (IFRS)

 

(A)Consolidated Income Statements

 

€ millions, unless otherwise stated   Q1 2021   Q1 2020   ∆ in %
Cloud   2,145   2,011   7
Software licenses   483   451   7
Software support   2,801   2,934   –5
Software licenses and support   3,283   3,386   –3
Cloud and software   5,428   5,397   1
Services   919   1,124   –18
Total revenue   6,348   6,521   –3
             
Cost of cloud   –704   –675   4
Cost of software licenses and support   –471   –502   –6
Cost of cloud and software   –1,175   –1,176   0
Cost of services   –709   –890   –20
Total cost of revenue   –1,884   –2,066   –9
Gross profit   4,464   4,455   0
Research and development   –1,171   –1,051   11
Sales and marketing   –1,663   –1,851   –10
General and administration   –505   –315   60
Restructuring   –157   –15   >100
Other operating income/expense, net   –7   –12   –41
Total operating expenses   –5,387   –5,311   1
Operating profit (loss)   960   1,210   –21
             
Other non-operating income/expense, net   62   –49   <-100
Finance income   547   163   >100
Finance costs   –232   –203   15
Financial income, net   315   –39   <-100
Profit (loss) before tax   1,337   1,122   19
             
Income tax expense   –267   –310   –14
Profit (loss) after tax   1,070   811   32
Attributable to owners of parent   1,040   814   28
Attributable to non-controlling interests   30   –3   <-100
             
Earnings per share, basic (in €)1)   0.88   0.68   29
Earnings per share, diluted (in €)1)   0.88   0.68   29

 

1) For the three months ended March 31, 2021 and 2020, the weighted average number of shares was 1,180 million (diluted 1,180 million) and 1,191 million (diluted: 1,191 million), respectively (treasury stock excluded).

 

Due to rounding, numbers may not add up precisely.

 

SAP Quarterly Statement Q1 202112

 

 

 

(B)       Consolidated Statements of Financial Position

 

as at 3/31/2021 and 12/31/2020
€ millions   2021   2020
Cash and cash equivalents   10,332   5,311
Other financial assets   1,413   1,635
Trade and other receivables   6,617   6,593
Other non-financial assets   1,434   1,321
Tax assets   282   210
Total current assets   20,078   15,069
Goodwill   29,374   27,560
Intangible assets   4,082   3,784
Property, plant, and equipment   4,947   5,041
Other financial assets   4,163   3,512
Trade and other receivables   95   137
Other non-financial assets   2,056   1,926
Tax assets   272   271
Deferred tax assets   1,427   1,173
Total non-current assets   46,417   43,402
Total assets   66,495   58,472
 
€ millions   2021   2020
Trade and other payables   1,203   1,213
Tax liabilities   504   414
Financial liabilities   4,594   2,348
Other non-financial liabilities   3,588   4,643
Provisions   96   73
Contract liabilities   6,800   4,150
Total current liabilities   16,786   12,842
Trade and other payables   106   98
Tax liabilities   746   667
Financial liabilities   12,369   13,605
Other non-financial liabilities   944   770
Provisions   375   368
Deferred tax liabilities   239   158
Contract liabilities   93   36
Total non-current liabilities   14,873   15,702
Total liabilities   31,659   28,544
Issued capital   1,229   1,229
Share premium   970   545
Retained earnings   33,930   32,026
Other components of equity   502   –1,011
Treasury shares   –3,072   –3,072
Equity attributable to owners of parent   33,558   29,717
         
Non-controlling interests   1,278   211
Total equity   34,836   29,928
Total equity and liabilities   66,495   58,472

 

Due to rounding, numbers may not add up precisely.

 

SAP Quarterly Statement Q1 202113

 

 

(C)       Consolidated Statements of Cash Flows

 

€ millions   Q1 2021   Q1 2020
Profit (loss) after tax   1,070   811
Adjustments to reconcile profit (loss) after tax to net cash flows from operating activities:        
Depreciation and amortization   436   464
Share-based payment expense   472   93
Income tax expense   267   310
Financial income, net   –315   39
Decrease/increase in allowances on trade receivables   0   11
Other adjustments for non-cash items   119   –1
Decrease/increase in trade and other receivables   185   522
Decrease/increase in other assets   –108   –264
Increase/decrease in trade payables, provisions, and other liabilities   –936   –835
Increase/decrease in contract liabilities   2,503   2,451
Share-based payments   –106   –162
Interest paid   –83   –109
Interest received   8   25
Income taxes paid, net of refunds   –425   –371
Net cash flows from operating activities   3,085   2,984
Business combinations, net of cash and cash equivalents acquired   –930   –28
Purchase of intangible assets or property, plant, and equipment   –153   –333
Proceeds from sales of intangible assets or property, plant, and equipment   21   24
Purchase of equity or debt instruments of other entities   –228   –133
Proceeds from sales of equity or debt instruments of other entities   322   96
Net cash flows from investing activities   –967   –373
Dividends paid on non-controlling interests   –2   0
Purchase of treasury shares   0   –150
Proceeds from changes in ownership interests in subsidiaries that do not result in the loss of control   1,847   0
Proceeds from borrowings   1,450   11
Repayments of borrowings   –550   –12
Payments of lease liabilities   –84   –72
Net cash flows from financing activities   2,661   –223
Effect of foreign currency rates on cash and cash equivalents   243   113
Net decrease/increase in cash and cash equivalents   5,022   2501
Cash and cash equivalents at the beginning of the period   5,311   5,314
Cash and cash equivalents at the end of the period   10,332   7,816
         
Due to rounding, numbers may not add up precisely.

 

SAP Quarterly Statement Q1 202114

 

 

Non-IFRS Numbers

 

(D)       Basis of Non-IFRS Presentation

 

We disclose certain financial measures such as revenue (non-IFRS), expense (non-IFRS), and profit measures (non-IFRS) that are not prepared in accordance with IFRS and are therefore considered non-IFRS financial measures.

 

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.

 

SAP Quarterly Statement Q1 202115

 

 

(E)       Reconciliation from Non-IFRS Numbers to IFRS Numbers

 

€ millions, unless otherwise stated   Q1 2021   Q1 2020   ∆ in %
  IFRS   Adj.   Non-IFRS  

Currency

Impact

   Non-IFRS Constant Currency   IFRS   Adj.   Non-IFRS   IFRS   Non-IFRS   Non-IFRS Constant Currency1)
Revenue Numbers                                            
Cloud   2,145   2   2,147   132   2,280   2,011   1   2,012   7   7   13
Software licenses   483   0   483   19   501   451   0   451   7   7   11
Software support   2,801   0   2,801   127   2,927   2,934   0   2,934   –5   –5   0
Software licenses and support   3,283   0   3,283   145   3,429   3,386   0   3,386   –3   –3   1
Cloud and software   5,428   2   5,431   278   5,708   5,397   1   5,398   1   1   6
Services   919   0   919   47   966   1,124   0   1,124   –18   –18   –14
Total revenue   6,348   2   6,350   325   6,675   6,521   1   6,522   –3   –3   2
                                             
Operating Expense Numbers                                            
Cost of cloud   –704   51   –654           –675   56   –618   4   6    
Cost of software licenses and
support		   –471   21   –450           –502   18   –483   –6   –7    
Cost of cloud and software   –1,175   71   –1,103           –1,176   75   –1,102   0   0    
Cost of services   –709   52   –657           –890   22   –868   –20   –24    
Total cost of revenue   –1,884   123   –1,760           –2,066   97   –1,969   –9   –11    
Gross profit   4,464   126   4,590           4,455   98   4,553   0   1    
Research and development   –1,171   94   –1,077           –1,051   25   –1,027   11   5    
Sales and marketing   –1,663   188   –1,475           –1,851   126   –1,725   –10   –15    
General and administration   –505   215   –290           –315   7   –307   60   –6    
Restructuring   –157   157   0           –15   15   0   >100   NA    
Other operating income/expense, net   –7   0   –7           –12   0   –12   –41   –41    
Total operating expenses   –5,387   778   –4,609   –222   –4,831   –5,311   271   –5,040   1   –9   –4
                                             
Profit Numbers                                            
Operating profit (loss)   960   780   1,741   102   1,843   1,210   272   1,482   –21   17   24
Other non-operating income/expense, net   62   0   62           –49   0   –49   <-100   <-100    
Finance income   547   0   547           163   0   163   >100   >100    
Finance costs   –232   0   –232           –203   0   –203   15   15    
Financial income, net   315   0   315           –39   0   –39   <-100   <-100    
Profit (loss) before tax   1,337   780   2,117           1,122   272   1,394   19   52    
Income tax expense   –267   –128   –395           –310   –69   –379   –14   4    
Profit (loss) after tax   1,070   652   1,722           811   203   1,015   32   70    
Attributable to owners of parent   1,040   608   1,648           814   203   1,018   28   62    
Attributable to non-controlling interests   30   45   74           –3   0   –3   <-100   <-100    
                                             
Key Ratios                                            
Operating margin (in %)   15.1       27.4       27.6   18.6       22.7   –3.4pp   4.7pp   4.9pp
Effective tax rate (in %)2)   20.0       18.7           27.7       27.2   –7.7pp   –8.5pp    
Earnings per share, basic (in €)   0.88       1.40           0.68       0.85   29   63    

 

1) Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS numbers of the previous year's respective period.

 

2) The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in Q1 2021 mainly resulted from tax effects of share-based payment expenses, acquisition-related charges and restructuring expenses. The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in Q1 2020 mainly resulted from tax effects of acquisition-related charges and share-based payment expenses.

 

Due to rounding, numbers may not add up precisely.

 

SAP Quarterly Statement Q1 202116

 

 

(F)       Non-IFRS Adjustments – Actuals and Estimates

 

€ millions  

Estimated Amounts for

Full Year 2021

   Q1 2021   Q1 2020
Operating profit (loss) (IFRS)       960   1,210
Revenue adjustments   0–30   2   1
Adjustment for acquisition-related charges    540–640   149   162
Adjustment for share-based payment expenses   2,300–2,800   472   93
Adjustment for restructuring   150–200   157   15
Operating expense adjustments       778   271
Operating profit (loss) adjustments       780   272
Operating profit (loss) (non-IFRS)       1,741   1,482

 

 

Due to rounding, numbers may not add up precisely.

 

 

(G)       Non-IFRS Adjustments by Functional Areas

 

€ millions   Q1 2021   Q1 2020
  IFRS   Acquisition-
Related		   SBP1)   Restruc-
turing		   Non-IFRS   IFRS   Acquisition-
Related		   SBP1)   Restruc turing   Non-IFRS
Cost of cloud   –704   39   11   0   –654   –675   53   3   0   –618
Cost of software licenses and support   –471   8   13   0   –450   –502   11   7   0   –483
Cost of services   –709   5   47   0   –657   –890   1   22   0   –868
Research and development   –1,171   2   92   0   –1,077   –1,051   2   23   0   –1,027
Sales and marketing   –1,663   90   98   0   –1,475   –1,851   95   31   0   –1,725
General and administration   –505   5   210   0   –290   –315   1   7   0   –307
Restructuring   –157   0   0   157   0   –15   0   0   15   0
Other operating income/expense, net   –7   0   0   0   –7   –12   0   0   0   –12
Total operating expenses   –5,387   149   472   157   –4,609   –5,311   162   93   15   –5,040

 

1) Share-based Payments

 

Due to rounding, numbers may not add up precisely.

 

SAP Quarterly Statement Q1 202117

 

 

If not presented in a separate line item in our income statement, the restructuring expenses would break down as follows:

€ millions   Q1 2021   Q1 2020
Cost of cloud   –130   0

Cost of software licenses

and support

   –3   –2
Cost of services   –14   –4
Research and development   –9   –5
Sales and marketing   –2   –2
General and administration   –1   0
Restructuring expenses   –157   –15

 

Due to rounding, numbers may not add up precisely.

 

SAP Quarterly Statement Q1 202118

 

 

 

Disaggregations

 

(H)       Segment Reporting

(H.1)     Segment Policies and Segment Changes

 

SAP has three reportable segments: the Applications, Technology & Support segment, the Qualtrics segment, and the Services segment.

 

In the first quarter 2021, the following changes to the composition of our operating segments occurred due to internal reorganizations and acquisitions:

 

–SAP acquired Signavio GmbH to complement its Business Process Intelligence offerings. Consequently, this acquisition led to a new operating segment called Business Process Intelligence. Due to its size, however, Business Process Intelligence is not a reportable segment.

 

–In the beginning of 2021, the Concur segment was dissolved and integrated into the Applications, Technology & Support segment and the Services segment.

 

–In the first quarter of 2021, the finance and legal functions of Qualtrics were reintegrated into the Qualtrics segment.

 

For a more detailed description of SAP’s segment reporting, see Note (C.1) “Results of Segments” of our Integrated Report 2020.

 

(H.2)       Segment Reporting – Quarter

 

Applications, Technology & Support

 

€ millions, unless otherwise stated

(Non-IFRS)

   Q1 2021   Q1 2020   ∆ in %   ∆ in %
 

Actual

Currency

  

Constant

Currency

  

Actual

Currency

  

Actual

Currency

  

Constant

Currency

Cloud   1,958   2,075   1,890   4   10
Software licenses   482   501   447   8   12
Software support   2,801   2,927   2,933   –5   0
Software licenses and support   3,283   3,428   3,381   –3   1
Cloud and software   5,241   5,504   5,271   –1   4
Services   73   76   84   –13   –10
Total segment revenue   5,314   5,579   5,355   –1   4
Cost of cloud   –611   –649   –587   4   10
Cost of software licenses and support   –412   –430   –452   –9   –5
Cost of cloud and software   –1,023   –1,079   –1,039   –2   4
Cost of services   –99   –103   –112   –12   –8
Total cost of revenue   –1,122   –1,182   –1,151   –3   3
Segment gross profit   4,192   4,398   4,204   0   5
Other segment expenses   –2,065   –2,158   –2,225   –7   –3
Segment profit (loss)   2,127   2,239   1,978   8   13
Margins                    
Cloud gross margin (in %)   68.8   68.7   68.9   –0.1pp   –0.2pp
Segment gross margin (in %)   78.9   78.8   78.5   0.4pp   0.3pp
Segment margin (in %)   40.0   40.1   36.9   3.1pp   3.2pp

 

Due to rounding, numbers may not add up precisely.

 

SAP Quarterly Statement Q1 202119

 

 

Qualtrics

 

€ millions, unless otherwise stated

(Non-IFRS)

   Q1 2021   Q1 2020   ∆ in %   ∆ in %
 

Actual

Currency

  

Constant

Currency

  

Actual

Currency

  

Actual

Currency

  

Constant

Currency

Cloud   160   174   120   33   45
Software licenses   0   0   0   NA   NA
Software support   0   0   0   NA   NA
Software licenses and support   0   0   0   NA   NA
Cloud and software   160   174   120   33   45
Services   43   47   42   3   12
Total segment revenue   202   221   161   25   37
Cost of cloud   –12   –13   –11   13   21
Cost of software licenses and support   0   0   0   NA   NA
Cost of cloud and software   –12   –13   –11   13   21
Cost of services   –29   –31   –29   1   8
Total cost of revenue   –41   –44   –40   4   12
Segment gross profit   161   176   122   32   45
Other segment expenses   –148   –164   –138   7   19
Segment profit (loss)   13   12   –16   <-100   <-100
Margins                    
Cloud gross margin (in %)   92.2   92.3   90.8   1.4pp   1.5pp
Segment gross margin (in %)   79.6   79.9   75.4   4.2pp   4.5pp
Segment margin (in %)   6.4   5.5   –10.1   16.5pp   15.6pp

 

Due to rounding, numbers may not add up precisely.

 

 

 

Services

 

€ millions, unless otherwise stated

(Non-IFRS)

   Q1 2021   Q1 2020   ∆ in %   ∆ in %
 

Actual

Currency

  

Constant

Currency

  

Actual

Currency

  

Actual

Currency

  

Constant

Currency

Cloud   0   0   0   NA   NA
Software licenses   0   0   0   NA   NA
Software support   0   0   1   <-100   <-100
Software licenses and support   0   0   1   <-100   <-100
Cloud and software   0   0   1   –63   –63
Services   799   839   909   –12   –8
Total segment revenue   800   839   910   –12   –8
Cost of cloud   –23   –24   –18   26   34
Cost of software licenses and support   –8   –9   –12   –33   –29
Cost of cloud and software   –31   –33   –30   2   8
Cost of services   –506   –530   –635   –20   –17
Total cost of revenue   –537   –563   –666   –19   –15
Segment gross profit   262   276   244   7   13
Other segment expenses   –93   –97   –109   –15   –11
Segment profit (loss)   170   179   135   26   33
Margins                    
Services gross margin (in %)   36.7   36.8   30.1   6.6pp   6.7pp
Segment gross margin (in %)   32.8   32.9   26.8   6.0pp   6.1pp
Segment margin (in %)   21.2   21.3   14.8   6.4pp   6.5pp

 

Due to rounding, numbers may not add up precisely.

 

SAP Quarterly Statement Q1 202120

 

 

(I)       Reconciliation of Cloud Revenues and Margins

 

                        Q1 2021           Q1 2020           ∆ in %

€ millions, unless otherwise stated

 

       IFRS   Adj.   Non-IFRS   Currency Impact   Non-IFRS Constant Currency   IFRS   Adj.   Non-IFRS   IFRS   Non-IFRS   Non-IFRS Constant Currency3)
Cloud revenue – SaaS/PaaS1)   Intelligent Spend   661   0   661   46   707   719   0   719   –8   –8   –2
  Other   1,270   2   1,273   73   1,346   1,087   1   1,088   17   17   24
  Total   1,931   2   1,933   119   2,052   1,806   1   1,807   7   7   14
Cloud revenue – IaaS2)       214   0   214   13   228   205   0   205   5   5   11
Cloud revenue       2,145   2   2,147   132   2,280   2,011   1   2,012   7   7   13
Cloud gross margin – SaaS/PaaS1) (in %)   Intelligent Spend   78.3       78.7       79.1   78.6       78.7   –0.3pp   –0.1pp   0.4pp
  Other   67.2       71.0       70.7   65.2       70.2   2.1pp   0.8pp   0.5pp
  Total   71.0       73.6       73.6   70.5       73.6   0.5pp   –0.0pp   –0.0pp
Cloud gross margin – IaaS2) (in %)       32.4       33.1       32.8   30.6       31.0   1.8pp   2.2pp   1.8pp
Cloud gross margin (in %)       67.2       69.6       69.5   66.4       69.3   0.7pp   0.3pp   0.2pp

 

1) Software as a Service/Platform as a Service

2) Infrastructure as a Service

3) Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS numbers of the previous year's respective period.

 

Due to rounding, numbers may not add up precisely.

 

SAP Quarterly Statement Q1 202121

 

(J)       Revenue by Region (IFRS and Non-IFRS)

 

€ millions   Q1 2021   Q1 2020    ∆ in %
    IFRS   Adj.   Non-IFRS  

Currency

Impact

  

Non-IFRS

Constant

Currency

   IFRS   Adj.   Non-IFRS   IFRS   Non-IFRS  

Non-IFRS

Constant

Currency1)

Cloud Revenue by Region                        
EMEA   745   1   746   19   765   618   0   618   21   21   24
Americas   1,114   1   1,115   103   1,218   1,142   1   1,144   -2   -2   7
APJ   286   0   286   10   296   251   0   251   14   14   18
Cloud revenue   2,145   2   2,147   132   2,280   2,011   1   2,012   7   7   13
                                             
Cloud and Software Revenue by Region                        
EMEA   2,433   1   2,435   45   2,480   2,326   0   2,326   5   5   7
Americas   2,118   1   2,118   198   2,316   2,252   1   2,253   –6   –6   3
APJ   877   0   877   35   912   820   0   820 7   7   11
Cloud and software revenue   5,428   2   5,431   278   5,708   5,397   1   5,398   1   1   6
                                             
Total Revenue by Region                        
Germany   951   1   952   1   953   894   0   894   6   6   7
Rest of EMEA   1,884   1   1,885   50   1,935 1,895   0   1,895   –1   -1   2
Total EMEA   2,835   1   2,837   51   2,887   2,789   0   2,789   2   2   4
United States   2,035   1   2,036   183   2,218   2,266   1   2,267   -10   -10   -2
Rest of Americas   486   0   486   51   537   503   0   503   -3   -3   7
Total Americas   2,521   1   2,522   234   2,756   2,769   1   2,770   -9   -9   -1
Japan   322   0   322   21   343   306   0   306   5   5   12
Rest of APJ   670   0   670   18   688   657   0   657   2   2   5
Total APJ   992   0   992   40   1,031   963   0   963   3   3   7
Total revenue     6,348   2   6,350   325   6,675   6,521   1   6,522   -3   -3   2

 

1) Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS numbers of the previous year's respective period.

 

Due to rounding, numbers may not add up precisely.

 

SAP Quarterly Statement Q1 202122

 

 

(K)      Employees by Region and Functional Areas

 

Full-time equivalents   3/31/2021   3/31/2020
  EMEA   Americas   APJ   Total   EMEA   Americas   APJ   Total
Cloud and software 5,896   4,486   5,089   15,471   6,469   4,561   5,425   16,455
Services 8,468   5,863   6,079   20,410   8,253   6,049   5,940   20,241
Research and development 14,073   6,103   9,944   30,120   12,842   5,939   9,273   28,054
Sales and marketing 10,404   10,450   4,924   25,779   10,187   10,485   5,186   25,859
General and administration 3,407   2,188   1,243   6,838   3,211   2,215   1,236   6,661
Infrastructure 2,501   1,258   766   4,524   2,205   1,009   665   3,879
SAP Group (3/31) 44,749   30,348   28,045   103,142   43,166   30,259   27,726   101,150
    Thereof acquisitions1) 359   41   26   426   0   0   0   0
SAP Group (three months' end average) 44,389   30,295   28,007   102,691   43,143   30,088   27,632   100,864
1) Acquisitions closed between January 1 and March 31 of the respective year

 

SAP Quarterly Statement Q1 202123

 

 

Other Disclosures

 

(L)       Financial Income, Net

 

In the first quarter 2021, finance income mainly consists of gains from disposal or IFRS 9-related fair value adjustments of equity securities totaling €530 million (Q1/2020: €123 million).

 

In the first quarter 2021, finance costs mainly consist of losses from disposal or IFRS 9-related fair value adjustments of equity securities totaling €161 million (Q1/2020: €102 million).

 

(M)     Business Combinations

 

In January 2021, SAP announced it had entered into an agreement to acquire Signavio GmbH (Berlin, Germany), a leader in the enterprise business process intelligence and process management space. The initial purchase price is approx. €950 million. The transaction closed on March 5, following satisfaction of regulatory and other approvals; the operating results and assets and liabilities are reflected in our consolidated financial statements starting on that date.

 

(N)      Qualtrics Initial Public Offering (IPO)

 

On January 28, 2021, Qualtrics International Inc. (Qualtrics) successfully issued 12% of its shares on the Nasdaq Stock Market (NASDAQ) which resulted in SAP’s ownership decreasing to 83% (however, SAP continues to hold high-vote Class B common stock and, as a result, its current voting power is significantly higher). The IPO related cash inflow amounted to €1,847 million and the initial value of the non-controlling interests in net assets was calculated to be €909 million.

 

(O)       Share Based Payments

 

In January 2021, 65.9 million Qualtrics RSU (Retention Share Units) awards were granted to encourage and enable Qualtrics executives and employees, upon whose judgment, initiative and efforts the Company largely depends for the successful conduct of its business, to acquire an ownership interest in the Company.

 

Upon completion of a voluntary exchange offer for eligible Qualtrics employees on January 28, 2021, 5.4 million of Qualtrics Rights and 1.3 million SAP RSU awards were exchanged into 12.8 million Qualtrics RSU awards. The terms of the voluntary exchange offer, including the exchange ratio, were designed to preserve the intrinsic value of the Qualtrics Rights and SAP RSUs that were tendered.

 

(P)       Financial Liabilities

 

In March 2021, SAP drew two short-term bank loans of €950 million and €500 million with tenors of one year. The loans can be repaid flexibly over time and bear interest of the Euribor reference rate plus 0.08% and 0.05%, respectively.

 

SAP Quarterly Statement Q1 202124