EX-99.1 2 d340440dex991.htm EXHIBIT 99.1 Exhibit 99.1

 

LOGO

For Immediate Release

April 25, 2012

SAP Announces 2012 First Quarter Results

 

  •  

9th Consecutive Quarter of Double-Digit Growth in Non-IFRS Software and Software-Related Service Revenue

 

  •  

First Quarter 2012 Non-IFRS Software and Software-Related Service Revenue Increased 12% to €2.63 Billion (10% at Constant Currencies)

 

  •  

First Quarter 2012 Software Revenue Increased 4% to €637 Million (1% at Constant Currencies)

 

  •  

First Quarter 2012 Non-IFRS Operating Profit Increased 7% to €834 Million (3% at Constant Currencies)

 

  •  

First Quarter 2012 Non-IFRS Earnings Per Share Increased 11% to €0.49

 

  •  

Free Cash Flow Up 35% to €2 Billion

 

  •  

Strong Growth for Key Innovations: SAP HANA and Mobile €49 Million, Accelerating Momentum in Cloud Business With 69% Growth From New Business in Billings for SuccessFactors Stand-Alone

WALLDORF, Germany – April 25, 2012 – SAP AG (NYSE: SAP) today announced its financial results for the first quarter ended March 31, 2012.

“We reported our ninth consecutive quarter of double-digit growth in non-IFRS software and software-related service revenue, with a strong contribution from SuccessFactors to our cloud business,” said Werner Brandt, CFO of SAP. “Free cash flow was very strong in the first quarter, increasing by 35% to €2 billion. This enabled us to return to positive net liquidity faster than expected.”

“We see strong momentum for our flagship in-memory platform SAP HANA, our cloud and mobile solutions, and our core applications and analytics products,” said Bill McDermott and Jim Hagemann Snabe, Co-CEOs, SAP. “Customers are embracing our high speed of innovation and the ability to orchestrate solutions across our entire portfolio. SAP continues to help companies run like never before – helping to solve fundamental business challenges with unmatched industry expertise. We’re confident that we’ll deliver on our business outlook for Q2 and the full year.”

SAP Reports First Quarter 2012 Results   Page 2

 

FINANCIAL RESULTS IN DETAIL

FINANCIAL HIGHLIGHTS – First Quarter 2012

 

     First Quarter 20121)  
     IFRS                    Non-IFRS2)                       

€ million, unless otherwise stated

    Q1 2012      Q1 2011      %
change		      Q1 2012      Q1 2011      %
change		      % change
const. curr.3)		  

Software

      637         615         4         637         615         4         1   

Support

      1,953         1,708         14         1,954         1,725         13         11   

Cloud subscriptions and support

      29         4         625         35         4         775         725   

Software and software-related service revenue

      2,619         2,327         13         2,626         2,344         12         10   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total revenue

      3,350         3,024         11         3,357         3,041         10         8   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total operating expenses

      -2,719         -2,427         12         -2,523         -2,262         12         10   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

- thereof TomorrowNow litigation

      7         -2         <-100         0         0         0      

Operating profit

      631         597         6         834         779         7         3   

Operating margin (%)

      18.8         19.7         -0.9pp         24.8         25.6         -0.8pp         -1.1pp   

Profit after tax

      444         403         10         583         528         10      

Basic earnings per share (€)

      0.37         0.34         9         0.49         0.44         11      

Number of employees (FTE)

      59,420         53,872         10         N/A         N/A         N/A         N/A   

 

1) All figures are preliminary and unaudited.
2) Adjustments in the revenue line items are for the revenue that would have been recognized had acquired entities remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges, share-based compensation expenses, restructuring and discontinued activities.
3) Constant currency revenue and operating profit 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.

Revenue – First Quarter 2012

 

•  

IFRS software revenue was €637 million (2011: €615 million), an increase of 4% (1% at constant currencies).

 

•  

IFRS software and software-related service revenue was €2.62 billion (2011: €2.33 billion), an increase of 13%. Non-IFRS software and software-related service revenue was €2.63 billion (2011: €2.34 billion), an increase of 12% (10% at constant currencies).

 

•  

IFRS total revenue was €3.35 billion (2011: €3.02 billion), an increase of 11%. Non-IFRS total revenue was €3.36 billion (2011: €3.04 billion), an increase of 10% (8% at constant currencies).

First quarter 2012 non-IFRS software and software-related service revenue and total revenue exclude a deferred revenue write-down from acquisitions of €7 million (2011: €17 million).

Profit – First Quarter 2012

 

•  

IFRS operating profit was €631 million (2011: €597 million), an increase of 6%. Non-IFRS operating profit was €834 million (2011: €779 million), an increase of 7% (3% at constant currencies).

 

•  

IFRS operating margin was 18.8% (2011: 19.7%), a decrease of 0.9 percentage points. Non-IFRS operating margin was 24.8% (2011: 25.6%), or 24.5% at constant currencies, a decrease of 0.8 percentage points (a decrease of 1.1 percentage points at constant currencies).

SAP Reports First Quarter 2012 Results   Page 3

 

•  

IFRS profit after tax was €444 million (2011: €403 million), an increase of 10%. Non-IFRS profit after tax was €583 million (2011: €528 million), an increase of 10%. IFRS basic earnings per share was €0.37 (2011: €0.34), an increase of 9%. Non-IFRS basic earnings per share was €0.49 (2011: €0.44), an increase of 11%.

 

•  

The IFRS and non-IFRS effective tax rates in the first quarter of 2012 were 26.9% (2011: 30.9%) and 28.1% (2011: 31.0%), respectively.

First quarter 2012 non-IFRS software and software-related service revenue and non-IFRS operating profit excludes a deferred revenue write-down from acquisitions of €7 million (2011: €17 million). Non-IFRS operating profit additionally excludes acquisition-related charges of €120 million, profit from discontinued activities of €7 million, share-based compensation expenses of €83 million and restructuring expenses of €0 million (2011: €112 million, expenses of €2 million, €52 million and €0 million).First quarter 2012 non-IFRS profit after tax and non-IFRS basic earnings per share exclude a deferred revenue write-down from acquisitions of €5 million, acquisition-related charges of €79 million, profit from discontinued activities of €4 million, share-based compensation expenses of €59 million and restructuring expenses of €0 million (2011: €11 million, €76 million, expenses of €1 million, €37 million and €0 million) net of tax.

Cash Flow – First Quarter 2012

Operating cash flow was €2.07 billion (2011: €1.59 billion), an increase of 30%. Free cash flow was €1.96 billion (2011: €1.45 billion), an increase of 35%. Free cash flow was 58% of total revenue (2011: 48%). At March 31, 2012, SAP had a total group liquidity of €5.18 billion (December 31, 2011: €5.60 billion), which includes cash and cash equivalents and short term investments. Net liquidity at March 31, 2012 was €845 million compared to €1.64 billion at December 31, 2011. This decrease in net liquidity was mainly due to the acquisition of SuccessFactors and was partially offset by increased operating cash flow in the first quarter 2012.

SuccessFactors

On February 16, 2012, The Company announced the successful closing of its cash tender offer for all issued and outstanding shares of common stock of SuccessFactors, Inc.

On a stand-alone basis, SuccessFactors achieved a 69% increase in its 12 month billings from new business in the first quarter (compared to their first quarter 2011). SAP’s strong combination with SuccessFactors is allowing the Company to accelerate its strategy to become the leading cloud provider. SuccessFactors’ solutions are highly complementary to SAP’s core HCM offerings as well as SAP’s strong cloud assets: SAP Business ByDesign for the suite cloud market and SAP’s line of business cloud offerings for large enterprises such as SAP Sales on Demand.

SAP Reports First Quarter 2012 Results   Page 4

 

Business Outlook

SAP reiterates the following outlook for the full-year 2012:

 

•  

The Company expects full-year 2012 non-IFRS software and software-related service revenue to increase in a range of 10% – 12% at constant currencies (2011: €11.35 billion). This includes a contribution of up to 2 percentage points from SuccessFactors’ business.

 

•  

The Company expects full-year 2012 non-IFRS operating profit to be in a range of €5.05 billion – €5.25 billion at constant currencies (2011: €4.71 billion). Full-year 2012 non-IFRS operating profit excluding SuccessFactors is expected to be in a similar range.

 

•  

The Company projects a full-year 2012 IFRS effective tax rate of 26.5% – 27.5% (2011: 27.9%) and a non-IFRS effective tax rate of 27.0% – 28.0% (2011: 26.6%).

In addition to the full-year outlook, SAP is providing the following outlook for the second quarter 2012:

 

•  

The Company expects second quarter 2012 software revenue to increase in a range of 15% – 20% at constant currencies (2011: €838 million).

 

•  

The Company expects second quarter 2012 non-IFRS software and software-related service revenue to increase in a range of 14% – 16% at constant currencies (2011: €2.59 billion).

Major Customer Wins

In the first quarter of 2012, SAP closed the following major contracts.

EMEA

EADS N.V., GlaxoSmithKline Biologicals SA, Kenya Ports Authority, Prada S.p.A., RAK Ceramics, RAYNET SNC

Americas

BJ’s Wholesale Club, Boston Scientific Corporation, Grupo Pão de Açúcar, Nutrisystem, Inc., Petroleos del Peru S.A.

Asia Pacific Japan

Australia and New Zealand Banking Group Limited, China Shenhua Energy Co., Ltd., Hyosung Corporation, Syarikat Prasarana Negara Berhad

HANA

Banco Compartamos, S.A., Integrated Utility Holding, Joeone Company Limited, United Breweries Ltd.

Cloud

CEVA Logistics, LRS Lufthansa Revenue Services GmbH, Optimal, Rio Tinto, Sobeys, Stulz Air Technology Inc.

Additional Information

First quarter 2012 revenue, profit and cash flow figures include the revenue, profits and cash flows from SuccessFactors starting on February 21, 2012. For the prior-year period those numbers were not included.

TomorrowNow litigation update: Late last year Oracle filed a motion seeking an early appeal from the ruling vacating the jury’s damages award. The early appeal was denied by the judge on January 6, 2012,

SAP Reports First Quarter 2012 Results   Page 5

 

and Oracle had the choice to accept the reduced damages of $272 million or seek a new trial to determine damages. Oracle elected to proceed with a new trial. The new trial date is currently scheduled for June 18, 2012.

In light of SAP’s strong focus on the cloud market, SAP realigned its income statement to provide additional transparency on cloud-related revenue streams. On February 17, 2012, SAP published a Webmessage discussing this change. For more details see More Transparency On Cloud Revenue: SAP Realigns Its Income Statement (Webmessage) online.

Additionally, SAP has provided estimates of the projected differences between its 2012 non-IFRS measures and the comparable IFRS measures, and widened the range of revenues for which acquisition-related deferred revenue write-downs are adjusted in determining SAP’s non-IFRS revenue and profit numbers. On March 23, 2012, SAP published a Webmessage discussing this change. For more details see SAP’s Non-IFRS financial measures: 2012 estimates of the differences between IFRS and Non-IFRS (Webmessage) online.

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

# #

First Quarter 2012 Interim Report

SAP’s first quarter 2012 Interim Report was published today and is available for download at www.sap.com/investor. The interim report includes an update on SAP’s sustainability performance.

Webcast

SAP senior management will host a conference call for financial analysts and media on Wednesday, April 25th 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.

2011 Annual Report

SAP’s 2011 Annual Report was published on March 23, 2012, and is available for download at www.sap.com/investor.

About SAP

As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 190,000 customers (includes customers from the acquisition of SuccessFactors) to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

# # #

SAP Reports First Quarter 2012 Results   Page 6

 

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.

© 2012 SAP AG. All rights reserved.

SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, SAP HANA, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.

Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company.Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company.

Crossgate, m@gic EDDY, B2B 360°, and B2B 360° Services are registered trademarks of Crossgate AG in Germany and other countries. Crossgate is an SAP company.

SuccessFactors, Execution is the Difference, BizX Mobile Touchbase, It’s time to love work again, Jam and BadAss SaaS are trademarks or registered trademarks of SuccessFactors Inc. in the United States and other countries. SuccessFactors is an SAP company.

All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

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.

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)

For more information, press only:

 

Christoph Liedtke    +49 (6227) 7-50383    christoph.liedtke@sap.com, CET
Daniel Reinhardt    +49 (6227) 7-40201    daniel.reinhardt@sap.com, CET
Hubertus Kuelps    +49 (6227) 7-40011    hubertus.kuelps@sap.com, CET
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Lynn Ong    +65 6768 6439    lynn.ong@sap.com, SGT (GMT +8)

For more information, financial community only:

 

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

Follow SAP Investor Relations on Twitter at @sapinvestor.

Appendix – Financial Information to Follow

 

LOGO

FINANCIAL INFORMATION

FOR THE FIRST QUARTER 2012

(Condensed and Unaudited)

 

     Page

Financial Statements (IFRS)

   

Income Statements

    F1

Statements of Financial Position

    F2-F3

Statements of Cash Flows

    F4

Supplementary Financial Information

   

Reconciliations from Non-IFRS Numbers to IFRS Numbers

    F5-F6

Revenue by Region

    F7

Financial Statements (IFRS)

CONSOLIDATED INCOME STATEMENT

For the three months ended March 31

(Unaudited)

 

€ millions, unless otherwise stated

    2012      2011      Change
in %		  

Software

      637         615         4   

Support

      1,953         1,708         14   

Cloud subscriptions and support

      29         4         625   

Software and software-related service revenue

      2,619         2,327         13   

Consulting

      597         570         5   

Other services

      134         127         6   

Professional services and other service revenue

      731         697         5   
  

 

 

     

 

 

     

 

 

  

Total revenue

      3,350         3,024         11   

Cost of software and software-related services

      -538         -495         9   

Cost of professional services and other services

      -624         -577         8   
  

 

 

     

 

 

     

 

 

  

Total cost of revenue

      -1,162         -1,072         8   
  

 

 

     

 

 

     

 

 

  

Gross profit

      2,188         1,952         12   

Research and development

      -523         -498         5   

Sales and marketing

      -831         -677         23   

General and administration

      -209         -177         18   

Restructuring

      0         0         0   

TomorrowNow litigation

      7         -2         <-100   

Other operating income/expense, net

      -1         -1         0   
  

 

 

     

 

 

     

 

 

  

Total operating expenses

      -2,719         -2,427         12   
  

 

 

     

 

 

     

 

 

  

Operating profit

      631         597         6   
  

 

 

     

 

 

     

 

 

  

Other non-operating income/expense, net

      -8         0         N/A   

Finance income

      24         29         -17   

Finance Cost TomorrowNow litigation

      -1         0         N/A   

Other finance costs

      -39         -43         -9   

Finance costs

      -40         -43         -7   
  

 

 

     

 

 

     

 

 

  

Financial income, net

      -16         -14         14   
  

 

 

     

 

 

     

 

 

  

Profit before tax

      607         583         4   
  

 

 

     

 

 

     

 

 

  

Income tax TomorrowNow litigation

      -2         0         N/A   

Other income tax expense

      -161         -180         -11   

Income tax expense

      -163         -180         -9   
  

 

 

     

 

 

     

 

 

  

Profit after tax

      444         403         10   
  

 

 

     

 

 

     

 

 

  

Profit attributable to non-controlling interests

      0         0         0   

Profit attributable to owners of parent

      444         403         10   
  

 

 

     

 

 

     

 

 

  

Basic earnings per share, in €*

      0.37         0.34         9   
  

 

 

     

 

 

     

 

 

  

Diluted earnings per share, in €*

      0.37         0.34         9   

 

* for the three months ended March 31, 2012 and 2011 the weighted average number of shares were 1,190 million (diluted: 1,191million) and 1,188 million (diluted: 1,189 million), respectively (treasury stock excluded).

 

F1

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As at March 31, 2012 and December 31, 2011

(Unaudited)

 

€ millions

    2012      2011  

Cash and cash equivalents

      4,548         4,965   

Other financial assets

      753         817   

Trade and other receivables

      3,442         3,493   

Other non-financial assets

      275         187   

Tax assets

      175         207   

Total current assets

      9,193         9,669   

Goodwill

      10,765         8,711   

Intangible assets

      2,679         2,024   

Property, plant, and equipment

      1,576         1,551   

Other financial assets

      649         538   

Trade and other receivables

      88         84   

Other non-financial assets

      51         39   

Tax assets

      152         146   

Deferred tax assets

      480         465   

Total non-current assets

      16,440         13,558   

Total assets

      25,633         23,227   

 

F2

€ millions

    2012      2011  

Trade and other payables

      856         937   

Tax liabilities

      338         409   

Financial liabilities

      1,675         1,331   

Other non-financial liabilities

      1,276         1,981   

Provision TomorrowNow litigation

      218         231   

Other provisions

      390         331   

Provisions

      608         562   

Deferred income

      3,389         1,046   
  

 

 

     

 

 

  

Total current liabilities

      8,142         6,266   

Trade and other payables

      40         43   

Tax liabilities

      432         408   

Financial liabilities

      2,893         2,925   

Other non-financial liabilities

      99         92   

Provisions

      369         268   

Deferred tax liabilities

      573         474   

Deferred income

      38         44   
  

 

 

     

 

 

  

Total non-current liabilities

      4,444         4,254   

Total liabilities

      12,586         10,520   

Issued capital

      1,228         1,228   

Share premium

      437         419   

Retained earnings

      12,912         12,466   

Other components of equity

      -155         -37   

Treasury shares

      -1,384         -1,377   

Equity attributable to owners of parent

      13,038         12,699   

Non-controlling interests

      9         8   

Total equity

      13,047         12,707   

Equity and liabilities

      25,633         23,227   

 

F3

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the three months ended March 31

(Unaudited)

 

€ millions    2012      2011  

Profit after tax

      444         403   

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

      

Depreciation and amortization

      192         178   

Income tax expense

      163         180   

Financial income, net

      16         14   

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

      28         21   

Other adjustments for non-cash items

      -30         -10   

Decrease/increase in trade receivables

      36         -233   

Decrease/increase in other assets

      -89         -105   

Decrease/increase in trade payables, provisions and other liabilities

      -688         -593   

Decrease/increase in deferred income

      2,277         1,944   

Cash outflows due to TomorrowNow litigation

      0         -2   

Interest paid

      -28         -21   

Interest received

      26         20   

Income taxes paid, net of refunds

      -276         -204   
  

 

 

     

 

 

  

Net cash flows from operating activities

      2,071         1,592   

Purchase of intangible assets and property, plant and equipment and business combinations *)

      -2,728         -141   

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

      13         10   

Purchase of equity or debt instruments of other entities

      -478         -79   

Proceeds from sales of equity or debt instruments of other entities

      430         103   
  

 

 

     

 

 

  

Net cash flows from investing activities

      -2,763         -107   

Purchase of non-controlling interests

      0         -21   

Purchase of treasury shares

      -53         -158   

Proceeds from reissuance of treasury shares

      48         141   

Proceeds from issuing shares (share-based compensation)

      10         29   

Proceeds from borrowings

      1,000         2   

Repayments of borrowings

      -600         -504   
  

 

 

     

 

 

  

Net cash flows from financing activities

      405         -511   

Effect of foreign exchange rates on cash and cash equivalents

      -130         -15   

Net decrease/increase in cash and cash equivalents

      -417         959   

Cash and cash equivalents at the beginning of the period

      4,965         3,518   

Cash and cash equivalents at the end of the period

      4,548         4,477   

 

*) In 2012 thereof: €2,615 million business combinations, net of cash and cash equivalents acquired.

 

F4

Supplementary Financial Information

RECONCILIATIONS FROM NON-IFRS NUMBERS TO IFRS NUMBERS

(Unaudited)

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

 

     for the three months ended March 31  
€ millions, unless otherwise stated    2012      2011      Change in %  

Revenue Numbers

    IFRS      Adj.*      Non-
IFRS*		      Currency
impact**		      Non-IFRS
constant
currency**		      IFRS      Adj.*      Non-
IFRS*		      IFRS      Non-
IFRS*		      Non-IFRS
constant
currency**		  

Software

      637         0         637         -14         623         615         0         615         4         4         1   

Support

      1,953         1         1,954         -43         1,911         1,708         17         1,725         14         13         11   

Cloud subscriptions and support

      29         6         35         -2         33         4         0         4         625         775         725   

Software and software-related service revenue

      2,619         7         2,626         -59         2,567         2,327         17         2,344         13         12         10   

Consulting

      597         0         597         -14         583         570         0         570         5         5         2   

Other services

      134         0         134         -2         132         127         0         127         6         6         4   

Professional services and other service revenue

      731         0         731         -16         715         697         0         697         5         5         3   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total revenue

      3,350         7         3,357         -75         3,282         3,024         17         3,041         11         10         8   

Operating Expense Numbers

                                                                             

Cost of software and software-related services

      -538         71         -467               -495         77         -418         9         12      

Cost of professional services and other services

      -624         30         -594               -577         13         -564         8         5      
  

 

 

     

 

 

     

 

 

           

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

Total cost of revenue

      -1,162         101         -1,061               -1,072         90         -982         8         8      
  

 

 

     

 

 

     

 

 

           

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

Gross profit

      2,188         108         2,296               1,952         107         2,059         12         12      

Research and development

      -523         23         -500               -498         23         -475         5         5      

Sales and marketing

      -831         55         -776               -677         38         -639         23         21      

General and administration

      -209         24         -185               -177         12         -165         18         12      

Restructuring

      0         0         0               0         0         0         0         0      

TomorrowNow litigation

      7         -7         0               -2         2         0         <-100         0      

Other operating income/expense, net

      -1         0         -1               -1         0         -1         0         0      
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total operating expenses

      -2,719         196         -2,523         46         -2,477         -2,427         165         -2,262         12         12         10   

Profit Numbers

                                                                             

Operating profit

      631         203         834         -29         805         597         182         779         6         7         3   

Other non-operating income/expense, net

      -8         0         -8               0         0         0         N/A         N/A      

Finance income

      24         0         24               29         0         29         -17         -17      

Finance Cost TomorrowNow litigation

      -1         1         0               0         0         0         N/A         0      

Other finance costs

      -39         0         -39               -43         0         -43         -9         -9      

Finance costs

      -40         1         -39               -43         0         -43         -7         -9      
  

 

 

     

 

 

     

 

 

           

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

Financial income, net

      -16         1         -15               -14         0         -14         14         7      
  

 

 

     

 

 

     

 

 

           

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

Profit before tax

      607         204         811               583         182         765         4         6      

Income tax TomorrowNow litigation

      -2         2         0               0         0         0         N/A         0      

Other income tax expense

      -161         -67         -228               -180         -57         -237         -11         -4      

Income tax expense

      -163         -65         -228               -180         -57         -237         -9         -4      
  

 

 

     

 

 

     

 

 

           

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

Profit after tax

      444         139         583               403         125         528         10         10      

Profit attributable to non-controlling interests

      0         0         0               0         0         0         0         0      

Profit attributable to owners of parent

      444         139         583               403         125         528         10         10      

Key Ratios

                                                                             

Operating margin in %

      18.8            24.8            24.5         19.7            25.6         -0.9pp         -0.8pp         -1.1pp   

Effective tax rate in %

      26.9            28.1               30.9            31.0         -4.0pp         -2.9pp      

Basic earnings per share, in €*

      0.37            0.49               0.34            0.44         9         11      

 

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

 

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** 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.

Differences may exist due to rounding.

 

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REVENUE BY REGION

(Unaudited)

The following table presents our IFRS and non-IFRS revenue by region based on customer location. The table also presents a reconciliation from our non-IFRS revenue (including our non-IFRS revenue at constant currency) to the respective most comparable IFRS revenue. Note: Our non-IFRS revenues are not prepared under a comprehensive set of accounting rules or principles.

 

     for the three months ended March 31  
€ millions    2012      2011      Change in %  

Software revenue by region

    IFRS      Adj.*      Non-
IFRS*		      Currency
impact**		      Non-IFRS
constant
currency**		      IFRS      Adj.*      Non-
IFRS*		      IFRS      Non-
IFRS*		      Non-IFRS
constant
currency**		  

EMEA

      279         0         279         -2         277         267         0         267         4         4         4   

Americas

      236         0         236         -9         227         245         0         245         -4         -4         -7   

APJ

      123         0         123         -4         119         103         0         103         19         19         16   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Software revenue

      637         0         637         -14         623         615         0         615         4         4         1   

Software and software-related service revenue by region

                                 

Germany

      371         0         371         0         371         331         0         331         12         12         12   

Rest of EMEA

      862         1         863         -7         856         795         5         800         8         8         7   

Total EMEA

      1,233         1         1,234         -6         1,228         1,126         5         1,131         10         9         9   

United States

      692         6         698         -29         669         620         9         629         12         11         6   

Rest of Americas

      255         0         255         -2         253         222         1         223         15         14         13   

Total Americas

      946         6         952         -30         922         842         11         853         12         12         8   

Japan

      144         0         144         -11         133         124         1         125         16         15         6   

Rest of APJ

      297         0         297         -12         285         236         1         237         26         25         20   

Total APJ

      440         0         440         -22         418         360         1         361         22         22         16   

Software and software-related service revenue

      2,619         7         2,626         -59         2,567         2,327         17         2,344         13         12         10   

Total revenue by region

                                 

Germany

      517         0         517         0         517         485         0         485         7         7         7   

Rest of EMEA

      1,058         1         1,059         -7         1,052         997         5         1,002         6         6         5   

Total EMEA

      1,575         1         1,576         -8         1,568         1,482         5         1,487         6         6         5   

United States

      913         6         919         -38         881         819         9         828         11         11         6   

Rest of Americas

      333         0         333         -3         330         292         1         293         14         14         13   

Total Americas

      1,246         6         1,252         -41         1,211         1,111         11         1,122         12         12         8   

Japan

      165         0         165         -12         153         140         1         141         18         17         9   

Rest of APJ

      364         0         364         -15         349         291         1         292         25         25         20   

Total APJ

      529         0         529         -27         502         431         1         432         23         22         16   

Total revenue

      3,350         7         3,357         -75         3,282         3,024         17         3,041         11         10         8   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

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

Differences may exist due to rounding.

For a more detailed description of these adjustments and their limitations as well as our constant currency and free cash flow figures see Explanations of Non-IFRS Measures online (www.sap.com/corporate-en/investors/reports).

 

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