EX-99.1 2 d384126dex991.htm EXHIBIT 99.1 Exhibit 99.1

Exhibit 99.1

Page 1

 

LOGO

For Immediate Release

July 24, 2012

SAP Announces Best Ever Second Quarter Performance – Exceeding €1 Billion in Software Revenue

 

  •  

Second Quarter 2012 Software Revenue Increased 26% to €1,059 Million (19% at Constant Currencies) Driven By Double-Digit Growth in All Regions

 

  •  

Strong Growth Momentum From Key Innovations: SAP HANA Contributed €85 Million, Mobile €54 Million and Cloud €69 Million

 

  •  

Second Quarter 2012 Non-IFRS Software and Software-Related Service Revenue Increased 21% to €3.14 Billion (15% at Constant Currencies)

 

  •  

Second Quarter 2012 Non-IFRS Operating Profit Increased 15% to €1.17 Billion (8% at Constant Currencies)

 

  •  

Second Quarter 2012 Non-IFRS Earnings Per Share Increased 19% to €0.70

 

  •  

SAP Reiterates Full-Year Guidance

WALLDORF, Germany – July 24, 2012 – SAP AG (NYSE: SAP) today announced its financial results for the second quarter ended June 30, 2012.

BUSINESS HIGHLIGHTS IN THE SECOND QUARTER

SAP achieved record software revenue in the second quarter, exceeding €1 billion. All regions posted double-digit software revenue gains. Demand for SAP’s new innovation categories continued to accelerate: Cloud momentum continued with a 112% increase year-on-year in 12 month new and upsell subscription billings for SuccessFactors on a stand-alone basis. SAP’s strong combination with SuccessFactors is allowing the company to accelerate its strategy to become the leading cloud provider. SAP recorded €85 million in SAP HANA revenue putting the company on track to meet full-year expectations of at least €320 million. Mobile revenue was €54 million and keeps SAP on track to meet full-year expectations of €220 million. SAP also saw significant traction in strategic industries, with financial services and retail both growing more than 60 percent in software revenue, and solid growth across the manufacturing sectors, which grew more than 20 percent in software revenue.

“Our customer-focused innovation strategy is delivering exceptional business value for our customers and driving record results for SAP in an uncertain macro-economic environment,” said SAP Co-CEOs Bill McDermott and Jim Hagemann Snabe. “SAP stands apart in its ability to bring its customers innovations in cloud, mobile and in-memory computing on top of a proven, consistent and stable core. We will continue to provide game-changing solutions and remain on track to achieve our 2015 goals.”

“We reached the upper end of our second quarter software revenue guidance range and were at the mid-point of the software and software-related service revenue guidance range,” said Werner Brandt, CFO of SAP. “With this momentum in the first half of 2012 and our focused commitment to operational excellence we are on track to deliver on our targets for the full-year 2012 – in line with our 2015 goals.”

SAP Reports Second Quarter 2012 Results   Page 2

 

FINANCIAL RESULTS IN DETAIL

FINANCIAL HIGHLIGHTS – Second Quarter 2012

 

     Second Quarter 20121)  
     IFRS      Non-IFRS2)  

€ million, unless otherwise stated

    Q2 2012      Q2 2011      % change      Q2 2012      Q2 2011      % change      % change
const. curr.		  

Software

      1,059         838         26         1,059         838         26         19   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Support

      2,013         1,737         16         2,014         1,745         15         10   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Cloud subscriptions and support

      52         4         1,200         69         4         1,625         1,450   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Software and software-related service revenue

      3,124         2,579         21         3,142         2,587         21         15   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total revenue

      3,898         3,300         18         3,916         3,308         18         12   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total operating expenses

      -2,977         -2,443         22         -2,743         -2,289         20         14   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Operating profit

      921         857         7         1,173         1,019         15         8   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Operating margin (%)

      23.6         26.0         -2.4pp         30.0         30.8         -0.8pp         -1.2pp   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Profit after tax

      661         588         12         831         703         18      
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

Basic earnings per share (€)

      0.55         0.49         12         0.70         0.59         19      
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Number of employees (FTE)

      60,972         54,043         13         N/A         N/A         N/A         N/A   

 

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

IFRS software revenue was €1,059 million (2011: €838 million), an increase of 26% (19% at constant currencies). IFRS software and software-related service revenue was €3.12 billion (2011: €2.58 billion), an increase of 21%. Non-IFRS software and software-related service revenue was €3.14 billion (2011: €2.59 billion), an increase of 21% (15% at constant currencies). IFRS total revenue was €3.90 billion (2011: €3.30 billion), an increase of 18%. Non-IFRS total revenue was €3.92 billion (2011: €3.31 billion), an increase of 18% (12% at constant currencies).

IFRS operating profit was €921 million (2011: €857 million), an increase of 7%. Non-IFRS operating profit was €1.17 billion (2011: €1.02 billion), an increase of 15% (8% at constant currencies). IFRS operating margin was 23.6% (2011: 26.0%), a decrease of 2.4 percentage points. Non-IFRS operating margin was 30.0% (2011: 30.8%), or 29.6% at constant currencies, a decrease of 0.8 percentage points (a decrease of 1.2 percentage points at constant currencies).

Non-IFRS operating profit and non-IFRS operating margin for the second quarter 2012 were impacted by severance expenses which amounted to €31 million (2011: €12 million) and the acquisition of SuccessFactors, which impacted the non-IFRS operating margin by approximately 100 basis points (at constant currencies). In addition, the company increased its headcount by 3,655 FTEs (thereof 1,866 from acquisitions) in the first quarter of 2012 and another 1,552 FTEs (thereof 176 from acquisitions) in the second quarter of 2012 to capture future growth opportunities.

IFRS profit after tax was €661 million (2011: €588 million), an increase of 12%. Non-IFRS profit after tax was €831 million (2011: €703 million), an increase of 18%. IFRS basic earnings per share was €0.55 (2011: €0.49), an increase of 12%. Non-IFRS basic earnings per share was €0.70 (2011: €0.59), an increase of 19%. The IFRS and non-IFRS effective tax rates in the second quarter of 2012 were 23.6% (2011: 26.9%) and 25.6% (2011: 27.2%), respectively.

SAP Reports Second Quarter 2012 Results   Page 3

 

FINANCIAL HIGHLIGHTS – First-Half 2012

 

     First-Half 20121)  
     IFRS      Non-IFRS2)  

€ million, unless otherwise stated

    1H 2012      1H 2011      % change      1H 2012      1H 2011      % change      % change
const. curr.		  

Software

      1,696         1,453         17         1,696         1,453         17         11   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Support

      3,966         3,445         15         3,968         3,470         14         10   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Cloud subscriptions and support

      81         8         913         104         8         1,200         1,088   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Software and software-related service revenue

      5,743         4,906         17         5,768         4,931         17         12   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total revenue

      7,248         6,324         15         7,273         6,349         15         10   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total operating expenses

      -5,696         -4,870         17         -5,266         -4,551         16         12   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Operating profit

      1,551         1,454         7         2,007         1,798         12         6   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Operating margin (%)

      21.4         23.0         -1.6pp         27.6         28.3         -0.7pp         -1.1pp   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Profit after tax

      1,104         991         11         1,414         1,231         15      
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

Basic earnings per share (€)

      0.93         0.83         12         1.19         1.04         14      
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Number of employees (FTE)

      60,972         54,043         13         N/A         N/A         N/A         N/A   

 

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

IFRS software revenue was €1.70 billion (2011: €1.45 billion), an increase of 17% (11% at constant currencies). IFRS software and software-related service revenue was €5.74 billion (2011: €4.91 billion), an increase of 17%. Non-IFRS software and software-related service revenue was €5.77 billion (2011: €4.93 billion), an increase of 17% (12% at constant currencies). IFRS total revenue was €7.25 billion (2011: €6.32 billion), an increase of 15%. Non-IFRS total revenue was €7.27 billion (2011: €6.35 billion), an increase of 15% (10% at constant currencies).

IFRS operating profit was €1.55 billion (2011: €1.45 billion), an increase of 7%. Non-IFRS operating profit was €2.01 billion (2011: €1.80 billion), an increase of 12% (6% at constant currencies).

IFRS operating margin was 21.4% (2011: 23.0%), a decrease of 1.6 percentage points. Non-IFRS operating margin was 27.6 (2011: 28.3%), or 27.2% at constant currencies, a decrease of 0.7 percentage points (a decrease of 1.1 percentage points at constant currencies).

IFRS profit after tax was €1.10 billion (2011: €991 million), an increase of 11%. Non-IFRS profit after tax was €1.41 billion (2011: €1.23 billion), an increase of 15%. IFRS basic earnings per share was €0.93 (2011: €0.83), an increase of 12%. Non-IFRS basic earnings per share was €1.19 (2011: €1.04), an increase of 14%. The IFRS and non-IFRS effective tax rates in the first six months of 2012 were 25.0% (2011: 28.6%) and 26.7% (2011: 28.9%), respectively.

Operating cash flow was €2.40 billion (2011: €2.27 billion), an increase of 6%. Free cash flow was €2.13 billion (2011: €2.02 billion), an increase of 5%. Free cash flow was 29% of total revenue (2011: 32%). At June 30, 2012, SAP had a total group liquidity of €3.60 billion (December 31, 2011: €5.60 billion), which includes cash and cash equivalents and short term investments. Net liquidity at June 30, 2012 was –€376 million compared to €1.64 billion at December 31, 2011. This decrease in net liquidity was primarily the result of the dividend payment and the acquisition of SuccessFactors in the first half of 2012.

SAP Reports Second 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%).

Additional Regional Disclosure

Starting with the reporting for the second quarter 2012, SAP will report both, software revenue by customer location and software revenue by location of negotiation. The focus of the communication will be on the reporting by location of negotiation. For additional information please refer to the pages F9 and F10 of the appendix to this press release as well as SAP’s second quarter 2012 interim report.

Other Additional Information

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

TomorrowNow litigation update: The retrial date was scheduled for June 18, 2012. Due to a scheduling conflict affecting Oracle’s legal team the trial has been rescheduled to August 27, 2012.

SAP has updated its non-IFRS estimates for the full-year 2012. For the updated estimates please see SAP’s second quarter 2012 interim report. For a more detailed description of all of SAP’s non-IFRS measures and their limitations as well as our constant currency and free cash flow figures see Explanation of Non-IFRS Measures online.

# #

Second Quarter 2012 Interim Report

SAP’s second 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 on Tuesday, July 24th at 1:00 PM (CEST) / 12:00 PM (GMT) / 7:00 AM (EDT) / 4:00 AM (PDT). The conference call will be web cast live on the Company’s website at www.sap.com/investor and will be available for replay.

About SAP

As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 195,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

# # #

SAP Reports Second Quarter 2012 Results   Page 5

 

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.

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For customers interested in learning more about SAP products:

 

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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
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For more information, financial community only:

 

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Follow SAP Investor Relations on Twitter at @sapinvestor.

Appendix – Financial Information to Follow

LOGO

FINANCIAL INFORMATION

FOR THE SECOND QUARTER 2012

(Condensed and Unaudited)

 

     Page  

Financial Statements (IFRS)

   

Income Statements – Quarter

      F1   

Income Statements – Six Months

      F2   

Statements of Financial Position

      F3-F4   

Statements of Cash Flows

      F5   

Supplementary Financial Information

   

Reconciliations from Non-IFRS Numbers to IFRS Numbers

      F6-F7   

Non-IFRS Adjustments

      F8   

Revenue by Region

      F9-F10   

Financial Statements (IFRS)

CONSOLIDATED INCOME STATEMENTS

For the three months ended June 30

 

€ millions, unless otherwise stated

    2012      2011      Change
in %		  

Software

      1,059         838         26   

Support

      2,013         1,737         16   

Cloud subscriptions and support

      52         4         1,200   

Software and software-related service revenue

      3,124         2,579         21   

Consulting

      617         579         7   

Other services

      157         142         11   

Professional services and other service revenue

      774         721         7   
  

 

 

     

 

 

     

 

 

  

Total revenue

      3,898         3,300         18   

Cost of software and software-related services

      -568         -495         15   

Cost of professional services and other services

      -644         -558         15   
  

 

 

     

 

 

     

 

 

  

Total cost of revenue

      -1,212         -1,053         15   
  

 

 

     

 

 

     

 

 

  

Gross profit

      2,686         2,247         20   

Research and development

      -568         -468         21   

Sales and marketing

      -972         -743         31   

General and administration

      -222         -170         31   

Restructuring

      -4         -1         >100   

TomorrowNow litigation

      -2         -10         -80   

Other operating income/expense, net

      3         2         50   
  

 

 

     

 

 

     

 

 

  

Total operating expenses

      -2,977         -2,443         22   
  

 

 

     

 

 

     

 

 

  

Operating profit

      921         857         7   
  

 

 

     

 

 

     

 

 

  

Other non-operating income/expense, net

      -45         -35         29   

Finance income

      28         20         40   

Finance Cost TomorrowNow litigation

      0         0         0   

Other finance costs

      -39         -38         3   

Finance costs

      -39         -38         3   
  

 

 

     

 

 

     

 

 

  

Financial income, net

      -11         -18         -39   
  

 

 

     

 

 

     

 

 

  

Profit before tax

      865         804         8   
  

 

 

     

 

 

     

 

 

  

Income tax TomorrowNow litigation

      1         0         N/A   

Other income tax expense

      -205         -216         -5   

Income tax expense

      -204         -216         -6   
  

 

 

     

 

 

     

 

 

  

Profit after tax

      661         588         12   
  

 

 

     

 

 

     

 

 

  

Profit attributable to non-controlling interests

      0         1         -100   

Profit attributable to owners of parent

      661         587         13   
  

 

 

     

 

 

     

 

 

  

Basic earnings per share, in €*

      0.55         0.49         12   
  

 

 

     

 

 

     

 

 

  

Diluted earnings per share, in €*

      0.55         0.49         12   

 

* For the three months ended June 30, 2012 and 2011, the weighted average number of shares was 1,191 million (diluted 1,192 million) and 1,189 million (diluted: 1,189 million), respectively (treasury stock excluded).

 

F1

CONSOLIDATED INCOME STATEMENTS

For the six months ended June 30

 

€ millions, unless otherwise stated

    2012      2011      Change
in %		  

Software

      1,696         1,453         17   

Support

      3,966         3,445         15   

Cloud subscriptions and support

      81         8         913   

Software and software-related service revenue

      5,743         4,906         17   

Consulting

      1,214         1,148         6   

Other services

      291         270         8   

Professional services and other service revenue

      1,505         1,418         6   
  

 

 

     

 

 

     

 

 

  

Total revenue

      7,248         6,324         15   

Cost of software and software-related services

      -1,106         -990         12   

Cost of professional services and other services

      -1,268         -1,134         12   
  

 

 

     

 

 

     

 

 

  

Total cost of revenue

      -2,374         -2,124         12   
  

 

 

     

 

 

     

 

 

  

Gross profit

      4,874         4,200         16   

Research and development

      -1,091         -966         13   

Sales and marketing

      -1,802         -1,420         27   

General and administration

      -431         -347         24   

Restructuring

      -4         -1         >100   

TomorrowNow litigation

      5         -12         <-100   

Other operating income/expense, net

      1         0         N/A   
  

 

 

     

 

 

     

 

 

  

Total operating expenses

      -5,696         -4,870         17   
  

 

 

     

 

 

     

 

 

  

Operating profit

      1,551         1,454         7   
  

 

 

     

 

 

     

 

 

  

Other non-operating income/expense, net

      -53         -34         56   

Finance income

      52         49         6   

Finance costs TomorrowNow litigation

      -1         0         N/A   

Other finance costs

      -77         -81         -5   

Finance costs

      -78         -81         -4   
  

 

 

     

 

 

     

 

 

  

Financial income, net

      -26         -32         -19   
  

 

 

     

 

 

     

 

 

  

Profit before tax

      1,472         1,388         6   
  

 

 

     

 

 

     

 

 

  

Income tax TomorrowNow litigation

      -1         0         N/A   

Other income tax expense

      -367         -397         -8   

Income tax expense

      -368         -397         -7   
  

 

 

     

 

 

     

 

 

  

Profit after tax

      1,104         991         11   
  

 

 

     

 

 

     

 

 

  

Profit attributable to non-controlling interests

      0         1         -100   

Profit attributable to owners of parent

      1,104         990         12   
  

 

 

     

 

 

     

 

 

  

Basic earnings per share, in €*

      0.93         0.83         12   
  

 

 

     

 

 

     

 

 

  

Diluted earnings per share, in €*

      0.93         0.83         12   

 

* For the six months ended June 30, 2012 and 2011, the weighted average number of shares was 1,191 million (diluted 1,191 million) and 1,188 million (diluted: 1,189 million), respectively (treasury stock excluded).

Due to rounding, numbers may not add up precisely.

 

F2

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As at June 30, 2012, and December 31, 2011

 

€ millions

    2012      2011  

Cash and cash equivalents

      3,376         4,965   

Other financial assets

      374         817   

Trade and other receivables

      3,185         3,493   

Other non-financial assets

      371         187   

Tax assets

      230         207   

Total current assets

      7,536         9,669   

Goodwill

      11,163         8,711   

Intangible assets

      2,689         2,024   

Property, plant, and equipment

      1,656         1,551   

Other financial assets

      651         538   

Trade and other receivables

      86         84   

Other non-financial assets

      50         39   

Tax assets

      157         146   

Deferred tax assets

      500         465   

Total non-current assets

      16,952         13,558   

Total assets

      24,488         23,227   

 

F3

€ millions

    2012      2011  

Trade and other payables

      899         937   

Tax liabilities

      303         409   

Financial liabilities

      1,450         1,331   

Other non-financial liabilities

      1,259         1,981   

Provision TomorrowNow litigation

      227         231   

Other provisions

      465         331   

Provisions

      692         562   

Deferred income

      2,862         1,046   
  

 

 

     

 

 

  

Total current liabilities

      7,465         6,266   

Trade and other payables

      39         43   

Tax liabilities

      424         408   

Financial liabilities

      2,754         2,925   

Other non-financial liabilities

      98         92   

Provisions

      311         268   

Deferred tax liabilities

      565         474   

Deferred income

      49         44   
  

 

 

     

 

 

  

Total non-current liabilities

      4,240         4,254   

Total liabilities

      11,705         10,520   

Issued capital

      1,228         1,228   

Share premium

      456         419   

Retained earnings

      12,260         12,466   

Other components of equity

      177         -37   

Treasury shares

      -1,347         -1,377   

Equity attributable to owners of parent

      12,774         12,699   

Non-controlling interests

      9         8   

Total equity

      12,783         12,707   

Equity and liabilities

      24,488         23,227   

 

F4

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the six months ended June 30

 

€ millions

    2012      2011  

Profit after tax

      1,104         991   

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

      

Depreciation and amortization

      402         357   

Income tax expense

      368         396   

Financial income, net

      26         32   

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

      26         8   

Other adjustments for non-cash items

      24         10   

Decrease/increase in trade receivables

      362         241   

Decrease/increase in other assets

      -134         -74   

Decrease/increase in trade payables, provisions and other liabilities

      -752         -646   

Decrease/increase in deferred income

      1,629         1,353   

Cash outflows due to TomorrowNow litigation

      -4         -3   

Interest paid

      -96         -77   

Interest received

      47         37   

Income taxes paid, net of refunds

      -602         -356   
  

 

 

     

 

 

  

Net cash flows from operating activities

      2,400         2,269   

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

      -3,006         -248   

Cash payments for derivative instruments related to business combinations

      -26         0   

Total cash outflows for intangible assets and property, plant and equipment and business combinations

      -3,032         -248   

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

      22         18   

Purchase of equity or debt instruments of other entities

      -558         -730   

Proceeds from sales of equity or debt instruments of other entities

      941         186   
  

 

 

     

 

 

  

Net cash flows from investing activities

      -2,627         -774   

Purchase of non-controlling interests

      0         -21   

Dividends paid

      -1,310         -713   

Purchase of treasury shares

      -53         -158   

Proceeds from reissuance of treasury shares

      69         157   

Proceeds from issuing shares (share-based compensation)

      14         34   

Proceeds from borrowings

      1,002         519   

Repayments of borrowings

      -1,023         -1,005   
  

 

 

     

 

 

  

Net cash flows from financing activities

      -1,301         -1,187   

Effect of foreign exchange rates on cash and cash equivalents

      -61         16   

Net decrease/increase in cash and cash equivalents

      -1,589         324   

Cash and cash equivalents at the beginning of the period

      4,965         3,518   

Cash and cash equivalents at the end of the period

      3,376         3,842   

 

*) In 2012 thereof: €2,731 million business combinations, net of cash and cash equivalents acquired.

 

F5

SUPPLEMENTARY FINANCIAL INFORMATION

RECONCILIATION FROM NON-IFRS NUMBERS TO IFRS NUMBERS

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

 

    for the three months ended June 30  
    2012     2011     Change 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
currency**		  

Revenue Numbers

                      

Software

     1,059        0        1,059        -63        996        838        0        838        26        26        19   

Support

     2,013        1        2,014        -93        1,921        1,737        8        1,745        16        15        10   

Cloud subscriptions and support

     52        17        69        -7        62        4        0        4        1,200        1,625        1,450   

Software and software-related service revenue

     3,124        18        3,142        -163        2,979        2,579        8        2,587        21        21        15   

Consulting

     617        0        617        -32        585        579        0        579        7        7        1   

Other services

     157        0        157        -6        151        142        0        142        11        11        6   

Professional services and other service revenue

     774        0        774        -38        736        721        0        721        7        7        2   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenue

     3,898        18        3,916        -201        3,715        3,300        8        3,308        18        18        12   

Operating Expense Numbers

                      
 

 

 

    

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Cost of software and software-related services

     -568        77        -491            -495        69        -426        15        15     

Cost of professional services and other services

     -644        34        -610            -558        11        -547        15        12     
 

 

 

    

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Total cost of revenue

     -1,212        111        -1,101            -1,053        80        -973        15        13     
 

 

 

    

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Gross profit

     2,686        129        2,815            2,247        88        2,335        20        21     

Research and development

     -568        45        -523            -468        18        -450        21        16     

Sales and marketing

     -972        56        -916            -743        39        -704        31        30     

General and administration

     -222        16        -206            -170        6        -164        31        26     

Restructuring

     -4        4        0            -1        1        0        >100        0     

TomorrowNow litigation

     -2        2        0            -10        10        0        -80        0     

Other operating income/expense, net

     3        0        3            2        0        2        50        50     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

     -2,977        234        -2,743        126        -2,617        -2,443        154        -2,289        22        20        14   

Profit Numbers

                      
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating profit

     921        252        1,173        -75        1,098        857        162        1,019        7        15        8   

Other non-operating income/expense, net

     -45        0        -45            -35        0        -35        29        29     

Finance income

     28        0        28            20        0        20        40        40     

Finance Cost TomorrowNow litigation

     0        0        0            0        0        0        0        0     

Other finance costs

     -39        0        -39            -38        0        -38        3        3     

Finance costs

     -39        0        -39            -38        0        -38        3        3     
 

 

 

    

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Financial income, net

     -11        0        -11            -18        0        -18        -39        -39     
 

 

 

    

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Profit before tax

     865        252        1,117            804        162        966        8        16     

Income tax TomorrowNow litigation

     1        -1        0            0        0        0        N/A        0     

Other income tax expense

     -205        -81        -286            -216        -47        -263        -5        9     

Income tax expense

     -204        -82        -286            -216        -47        -263        -6        9     
 

 

 

    

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Profit after tax

     661        170        831            588        115        703        12        18     

Profit attributable to non-controlling interests

     0        0        0            1        0        1        -100        -100     

Profit attributable to owners of parent

     661        170        831            587        115        702        13        18     

Key Ratios

                      
 

 

 

      

 

 

      

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

 

 

  

Operating margin in %

     23.6          30.0          29.6        26.0          30.8        -2.4pp        -0.8pp        -1.2pp   

Effective tax rate in %

     23.6          25.6            26.9          27.2        -3.3pp        -1.6pp     

Basic earnings per share, in €

     0.55          0.70            0.49          0.59        12        19     

 

F6

    for the six months ended June 30  
    2012     2011     Change 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
currency**		  

Revenue Numbers

                      

Software

     1,696        0        1,696        -77        1,619        1,453        0        1,453        17        17        11   

Support

     3,966        2        3,968        -136        3,832        3,445        25        3,470        15        14        10   

Cloud subscriptions and support

     81        23        104        -9        95        8        0        8        913        1,200        1,088   

Software and software-related service revenue

     5,743        25        5,768        -222        5,546        4,906        25        4,931        17        17        12   

Consulting

     1,214        0        1,214        -46        1,168        1,148        0        1,148        6        6        2   

Other services

     291        0        291        -9        282        270        0        270        8        8        4   

Professional services and other service revenue

     1,505        0        1,505        -55        1,450        1,418        0        1,418        6        6        2   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenue

     7,248        25        7,273        -277        6,996        6,324        25        6,349        15        15        10   

Operating Expense Numbers

                      
 

 

 

    

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Cost of software and software-related services

     -1,106        149        -957            -990        146        -844        12        13     

Cost of professional services and other services

     -1,268        64        -1,204            -1,134        24        -1,110        12        8     
 

 

 

    

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Total cost of revenue

     -2,374        213        -2,161            -2,124        170        -1,954        12        11     
 

 

 

    

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Gross profit

     4,874        238        5,112            4,200        195        4,395        16        16     

Research and development

     -1,091        68        -1,023            -966        41        -925        13        11     

Sales and marketing

     -1,802        110        -1,692            -1,420        77        -1,343        27        26     

General and administration

     -431        40        -391            -347        18        -329        24        19     

Restructuring

     -4        4        0            -1        1        0        >100        0     

TomorrowNow litigation

     5        -5        0            -12        12        0        <-100        0     

Other operating income/expense, net

     1        0        1            0        0        0        N/A        N/A     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

     -5,696        430        -5,266        171        -5,095        -4,870        319        -4,551        17        16        12   

Profit Numbers

                      
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating profit

     1,551        456        2,007        -106        1,901        1,454        344        1,798        7        12        6   

Other non-operating income/expense, net

     -53        0        -53            -34        0        -34        56        56     

Finance income

     52        0        52            49        0        49        6        6     

Finance costs TomorrowNow litigation

     -1        1        0            0        0        0        N/A        0     

Other finance costs

     -77        0        -77            -81        0        -81        -5        -5     

Finance costs

     -78        1        -77            -81        0        -81        -4        -5     
 

 

 

    

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Financial income, net

     -26        1        -25            -32        0        -32        -19        -22     
 

 

 

    

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Profit before tax

     1,472        457        1,929            1,388        344        1,732        6        11     

Income tax TomorrowNow litigation

     -1        1        0            0        0        0        N/A        0     

Other income tax expense

     -367        -148        -515            -397        -104        -501        -8        3     

Income tax expense

     -368        -147        -515            -397        -104        -501        -7        3     
 

 

 

    

 

 

    

 

 

        

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

Profit after tax

     1,104        310        1,414            991        240        1,231        11        15     

Profit attributable to non-controlling interests

     0        0        0            1        0        1        -100        -100     

Profit attributable to owners of parent

     1,104        310        1,414            990        240        1,230        12        15     

Key Ratios

                      
 

 

 

      

 

 

      

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

 

 

  

Operating margin in %

     21.4          27.6          27.2        23.0          28.3        -1.6pp        -0.7pp        -1.1pp   

Effective tax rate in %

     25.0          26.7            28.6          28.9        -3.6pp        -2.2pp     

Basic earnings per share, in €

     0.93          1.19            0.83          1.04        12        14     

 

* Adjustments in the revenue line items are for support revenue, cloud subscription revenue and other similarly recurring revenues that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges, share-based compensation expenses, restructuring expenses and discontinued activities.
** Constant currency revenue and operating income figures are calculated by translating revenue and operating income of the current period using the average exchange rates from the previous year’s respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s respective period.

 

F7

NON-IFRS ADJUSTMENTS

 

€ millions, unless otherwise stated

    4/1/ -
6/30/2012		      1/1/ -
6/30/2012		      4/1/ -
6/30/2011		      1/1/ -
6/30/2011		  

Software and software-related service revenue (IFRS)

      3,124         5,743         2,579         4,906   

Adjustment for deferred revenue write-down

      18         25         8         25   

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

      3,142         5,768         2,587         4,931   

Operating profit (IFRS)

      921         1,551         857         1,454   

Revenue Adjustments (per above)

      18         25         8         25   

Adjustment for discontinued activities

      2         -5         10         12   

Adjustment for acquisition-related charges

      130         250         111         222   

Adjustment for stock-based compensation expenses

      98         181         32         84   

Adjustment for restructuring

      4         4         1         1   

Operating expense adjustments

      234         430         154         319   

Operating profit adjustments

      252         456         162         344   

Operating profit (Non-IFRS)

      1,173         2,007         1,019         1,798   

Profit after tax (IFRS)

      661         1,104         588         991   

Revenue adjustments (per above)

      18         25         8         25   

Operating profit adjustments (per above)

      234         430         154         319   

Adjustments pre-tax

      252         456         162         344   

Taxes on adjustments

      -82         -147         -47         -104   

Profit after tax (Non-IFRS)

      831         1,414         703         1,231   

Due to rounding, numbers may not add up precisely.

 

F8

REVENUE BY REGION

The following tables present our IFRS and non-IFRS revenue by region. Software revenue by region is based on location of negotiation whereas software and software-related service revenue by region and total revenue by region are based on customer location. The tables also present 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 June 30  
    2012     2011     Change in %  

€ millions

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

Software revenue by region

                      

EMEA

     419        0        419        -5        414        344        0        344        22        22        20   

Americas

     435        0        435        -40        395        329        0        329        32        32        20   

APJ

     205        0        205        -18        187        164        0        164        25        25        14   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Software revenue

     1,059        0        1,059        -63        996        838        0        838        26        26        19   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Software and software-related service revenue by region

                      

Germany

     436        0        436        0        436        397        0        397        10        10        10   

Rest of EMEA

     1,026        0        1,026        -20        1,006        852        2        854        20        20        18   

Total EMEA

     1,462        0        1,462        -20        1,442        1,249        2        1,251        17        17        15   

United States

     843        18        861        -96        765        675        4        679        25        27        13   

Rest of Americas

     292        0        292        -3        289        230        1        231        27        26        25   

Total Americas

     1,135        18        1,153        -99        1,054        904        5        909        26        27        16   

Japan

     171        0        171        -21        150        137        0        137        25        25        9   

Rest of APJ

     356        0        356        -23        333        289        0        289        23        23        15   

Total APJ

     527        0        527        -44        483        426        1        427        24        23        13   

Software and software-related service revenue

     3,124        18        3,142        -163        2,979        2,579        8        2,587        21        21        15   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenue by region

                      

Germany

     575        0        575        0        575        554        0        554        4        4        4   

Rest of EMEA

     1,233        0        1,233        -23        1,210        1,060        2        1,062        16        16        14   

Total EMEA

     1,808        0        1,808        -23        1,785        1,614        2        1,616        12        12        10   

United States

     1,085        18        1,103        -122        981        884        4        888        23        24        10   

Rest of Americas

     382        0        382        -5        377        304        1        305        26        25        24   

Total Americas

     1,468        18        1,486        -127        1,359        1,187        5        1,192        24        25        14   

Japan

     195        0        195        -25        170        153        0        153        27        27        11   

Rest of APJ

     427        0        427        -26        401        345        0        345        24        24        16   

Total APJ

     622        0        622        -51        571        498        1        499        25        25        14   

Total revenue

     3,898        18        3,916        -201        3,715        3,300        8        3,308        18        18        12   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

F9

    for the six months ended June 30  
    2012     2011     Change in %  

€ millions

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

Software revenue by region

                      

EMEA

     694        0        694        -6        688        611        0        611        14        14        13   

Americas

     674        0        674        -49        625        574        0        574        17        17        9   

APJ

     328        0        328        -22        306        267        0        267        23        23        15   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Software revenue

     1,696        0        1,696        -77        1,619        1,453        0        1,453        17        17        11   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Software and software-related service revenue by region

                      

Germany

     807        0        807        0        807        728        0        728        11        11        11   

Rest of EMEA

     1,887        1        1,888        -26        1,862        1,647        7        1,654        15        14        13   

Total EMEA

     2,694        1        2,695        -26        2,669        2,375        7        2,382        13        13        12   

United States

     1,535        24        1,559        -125        1,434        1,295        14        1,309        19        19        10   

Rest of Americas

     546        0        546        -4        542        451        2        453        21        21        20   

Total Americas

     2,081        24        2,105        -129        1,976        1,746        16        1,762        19        19        12   

Japan

     315        0        315        -32        283        261        1        262        21        20        8   

Rest of APJ

     652        0        652        -34        618        525        1        526        24        24        17   

Total APJ

     967        0        967        -66        901        785        2        787        23        23        14   

Software and software-related service revenue

     5,743        25        5,768        -222        5,546        4,906        25        4,931        17        17        12   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total revenue by region

                      

Germany

     1,092        0        1,092        0        1,092        1,040        0        1,040        5        5        5   

Rest of EMEA

     2,291        1        2,292        -30        2,262        2,057        7        2,064        11        11        10   

Total EMEA

     3,383        1        3,384        -30        3,354        3,097        7        3,104        9        9        8   

United States

     1,998        24        2,022        -160        1,862        1,703        14        1,717        17        18        8   

Rest of Americas

     715        0        715        -7        708        596        2        598        20        20        18   

Total Americas

     2,714        24        2,738        -168        2,570        2,299        16        2,315        18        18        11   

Japan

     360        0        360        -37        323        292        1        293        23        23        10   

Rest of APJ

     791        0        791        -41        750        636        1        637        24        24        18   

Total APJ

     1,151        0        1,151        -78        1,073        929        2        931        24        24        15   

Total revenue

     7,248        25        7,273        -277        6,996        6,324        25        6,349        15        15        10   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

SOFTWARE REVENUE BY CUSTOMER LOCATION

The table below shows the breakdown of software revenue by customer location.

 

€ millions

    Q2 2012      1/1/-
6/30/2012		      Q2 2011      1/1/-
6/30/2011		  

EMEA

      453         731         344         611   

Americas

      395         631         329         574   

APJ

      210         333         164         267   

SAP Group

      1,059         1,696         838         1,453   

 

* 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.

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

Due to rounding, numbers may not add up precisely.

 

F10