EX-99.1 2 d472202dex991.htm EXHIBIT 99.1 Exhibit 99.1

Exhibit 99.1

 

 

LOGO

For Immediate Release

January 23, 2013

SAP Announces Record Full Year and Fourth Quarter 2012 – Full Year 2012 Non-IFRS Software and Software-Related Service Revenue Increases 17% to €13.2 Billion

 

 

12th Consecutive Quarter of Double-Digit Growth in Non-IFRS Software and Software-Related Service Revenue

 

 

Revenue Guidance Exceeded: At Constant Currencies, Full Year 2012 Non-IFRS Software and Software-Related Service Revenue Increased 13%

 

 

Full Year Non-IFRS Software & Cloud Subscriptions Revenue1 Increased 21% to €5.00 Billion (17% At Constant Currencies)

 

 

Very Strong Software Revenue Contribution From Innovations in Full Year 2012: €392 Million from SAP HANA and €222 Million from Mobile

 

 

Accelerating Cloud Momentum: Annual Cloud Revenue Run Rate Approaching €850 Million2

 

 

Full Year 2012 Non-IFRS Operating Profit Increased 11% to €5.21 Billion (7% to €5.02 Billion at Constant Currencies Compared to Guidance Range of €5.05 - €5.25 Billion)

WALLDORF, Germany – January 23, 2013 – SAP AG (NYSE: SAP) today announced its preliminary financial results for the fourth quarter ended December 31, 2012.

BUSINESS HIGHLIGHTS IN THE FOURTH QUARTER AND FULL YEAR 2012

SAP delivered record revenues in 2012. Non-IFRS total revenue grew 14% year-on-year and exceeded €16 billion. Non-IFRS software and software-related service revenue grew 17% year-on-year to €13.2 billion. Non-IFRS software and cloud subscriptions revenue grew 21% year-on-year to €5 billion.

SAP delivered strong overall growth in the fourth quarter. The company achieved strong software revenue performance in the APJ region. The EMEA region delivered impressive results in light of the continued uncertain market environment and the Americas region had a solid software revenue performance considering a tough year-over-year comparison. SAP delivered exceptional growth in its key innovation areas SAP HANA, Mobile and Cloud: SAP HANA had an outstanding quarter reaching nearly €200 million in software revenue in the fourth quarter and achieving almost €400 million for the full year. SAP’s mobile business contributed more than €220 million to software revenue achieving its full year revenue target.

 

 

1 

Starting with the reporting for the fourth quarter and full year 2012, SAP has introduced, in the revenue section of its income statement, a new line item “Software & Cloud Subscriptions Revenue” which is the subtotal of the existing line items ‘Software Revenue’ and ‘Cloud Subscriptions and Support Revenue’. The content of the line items included in the subtotal as well as of all other line items in the income statements remain unchanged.

 

2 

The annual revenue run rate is derived from the total revenue of SAP’s two cloud segments (Cloud Applications and Ariba) in the fourth quarter of 2012 and includes Ariba (before any future growth). The annual run rate is calculated by taking the fourth quarter cloud division total revenue and multiplying it by 4.


SAP Reports Preliminary Fourth Quarter 2012 Results      Page  2   

 

SAP’s strong cloud momentum continued in the fourth quarter: Derived from the total revenue of SAP’s two cloud segments (Cloud Applications and Ariba) the annual cloud revenue run rate is approaching €850 million. For the SAP cloud applications segment alone 12 month new and upsell subscription billings increased nineteenfold in the fourth quarter. Even when including SuccessFactors in SAP’s 2011 numbers the growth is triple digit at 102%3. For SuccessFactors on a stand-alone basis, 12 month new and upsell subscription billings grew 95%.

“In 2012, SAP empowered best-run businesses to meet real-time consumer demands. We invested in our flagship innovation SAP HANA and strengthened the industry’s best portfolio in the cloud. We delivered industry-specific solutions, accessible anywhere on the mobile device,” said SAP Co-CEOs Bill McDermott and Jim Hagemann Snabe. “Our momentum has never been stronger. We are very well positioned to achieve our 2015 goals.”

“We achieved €5 billion in full year non-IFRS software and cloud subscription revenue, an increase of 21%. We saw very strong revenue contribution from our key innovations SAP HANA and Cloud. We are confident we will continue our double-digit growth momentum in 2013 and further improve our profitability,” said SAP CFO Werner Brandt.

FINANCIAL RESULTS IN DETAIL

FINANCIAL HIGHLIGHTS – Fourth Quarter 2012

 

     Fourth Quarter 20121)  
     IFRS      Non-IFRS2)  

€ million, unless
otherwise stated

   Q4 2012      Q4 2011      %
change
     Q4 2012      Q4 2011      %
change
     % change
const.
curr.
 

Software

     1,937         1,779         9         1,937         1,779         9         8   

Cloud subscriptions and support

     126         6         2,000         159         6         2,691         2,608   

Software & cloud subscriptions

     2,063         1,785         16         2,096         1,785         17         16   

Support

     2,165         1,936         12         2,170         1,937         12         10   

Software and software-related service revenue

     4,227         3,721         14         4,265         3,722         15         13   

Total revenue

     5,022         4,499         12         5,061         4,500         12         11   

Total operating expenses

     -3,431         -2,831         21         -3,096         -2,719         14         12   

- thereof TomorrowNow litigation

     2         6         -67         0         0         0      

Operating profit

     1,591         1,668         -5         1,964         1,781         10         9   

Operating margin (%)

     31.7         37.1         -5.4pp         38.8         39.6         -0.8pp         -0.6pp   

Profit after tax

     1,104         1,197         -8         1,359         1,277         6      

Basic earnings per share (€)

     0.93         1.01         -8         1.14         1.07         7      

Number of employees (FTE)

     64,422         55,765         16         N/A         N/A         N/A         N/A   

 

 

1) All figures are preliminary and 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 €1,937 million (2011: €1,779 million), an increase of 9% (8% at constant currencies). IFRS software & cloud subscriptions revenue was €2.06 billion (2011: €1.79 billion), an increase of 16%. Non IFRS software & cloud subscriptions revenue was €2.10 billion (2011: €1.79 billion), an increase of 17% (16% at constant currencies). IFRS software and software-related service

 

 

3 

Q4 2012 year-over-year growth rate in 12 month new and upsell subscription billings which relates to SAP cloud applications business (excluding Ariba). The growth rate is a pro forma growth rate assuming that the acquisition of SuccessFactors was completed as of January 1, 2011. For more information on our non-IFRS billings see Explanation of Non-IFRS Measures online.


SAP Reports Preliminary Fourth Quarter 2012 Results      Page  3   

 

revenue was €4.23 billion (2011: €3.72 billion), an increase of 14%. Non-IFRS software and software-related service revenue was €4.27 billion (2011: €3.72 billion), an increase of 15% (13% at constant currencies). IFRS total revenue was €5.02 billion (2011: €4.50 billion), an increase of 12%. Non-IFRS total revenue was €5.06 billion (2011: €4.50 billion), an increase of 12% (11% at constant currencies).

IFRS operating profit was €1.59 billion (2011: €1.67 billion), a decrease of 5%. Non-IFRS operating profit was €1.96 billion (2011: €1.78 billion), an increase of 10% (9% at constant currencies). IFRS operating margin was 31.7% (2011: 37.1%), a decrease of 5.4 percentage points. Non-IFRS operating margin was 38.8% (2011: 39.6%), or 39.0% at constant currencies, a decrease of 0.8 percentage points (a decrease of 0.6 percentage points at constant currencies).

IFRS operating profit and IFRS operating margin for the fourth quarter 2012 were impacted by share-based compensation expense of €185 million (2011: €1 million) and acquisition-related charges of €151 million (2011: €116 million). Share-based compensation expenses significantly increased primarily due to the implementation of new share-based compensation plans as well as the strong performance of SAP’s share price in 2012.

Total headcount for the group grew in the fourth quarter by 304 FTEs organically and by almost 3,100 FTEs in total (including acquisition of Ariba) compared to the previous quarter.

IFRS profit after tax was €1.10 billion (2011: €1.20 billion), a decrease of 8%. Non-IFRS profit after tax was €1,359 million (2011: €1,277 million), an increase of 6%. IFRS basic earnings per share was €0.93 (2011: €1.01), a decrease of 8%. Non-IFRS basic earnings per share was €1.14 (2011: €1.07), an increase of 7%. The IFRS and non-IFRS effective tax rates in the fourth quarter of 2012 were 27.7% (2011: 26.3%) and 28.5% (2011: 26.4%), respectively.

FINANCIAL HIGHLIGHTS – Full Year 2012

 

     Full Year 20121)  
     IFRS      Non-IFRS2)  

€ million, unless
otherwise stated

   FY 2012      FY 2011      %
change
     FY 2012      FY 2011      %
change
     % change
const.
curr.
 

Software

     4,658         4,107         13         4,658         4,107         13         10   

Cloud subscriptions and support

     270         18         1,400         342         18         1,839         1,717   

Software & cloud subscriptions

     4,928         4,125         19         5,000         4,125         21         17   

Support

     8,236         7,194         14         8,244         7,221         14         10   

Software and software-related service revenue

     13,164         11,319         16         13,245         11,346         17         13   

Total revenue

     16,222         14,233         14         16,303         14,260         14         10   

Total operating expenses

     -12,158         -9,352         30         -11,094         -9,550         16         12   

- thereof TomorrowNow litigation

     0         717         -100         0         0         0      

Operating profit

     4,064         4,881         -17         5,209         4,710         11         7   

Operating margin (%)

     25.1         34.3         -9.2pp         32.0         33.0         -1.0pp         -1.1pp   

Profit after tax

     2,826         3,439         -18         3,608         3,367         7      

Basic earnings per share (€)

     2.37         2.89         -18         3.03         2.83         7      

Number of employees (FTE)

     64,422         55,765         16         N/A         N/A         N/A         N/A   

 

 

1) All figures are preliminary and 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.


SAP Reports Preliminary Fourth Quarter 2012 Results      Page  4   

 

IFRS software revenue was €4.66 billion (2011: €4.11 billion), an increase of 13% (10% at constant currencies). IFRS software & cloud subscriptions revenue was €4.93 billion (2011: €4.13 billion), an increase of 19%. Non IFRS software & cloud subscriptions revenue was €5.00 billion (2011: €4.13 billion), an increase of 21% (17% at constant currencies). IFRS software and software-related service revenue was €13.16 billion (2011: €11.32 billion), an increase of 16%. Non-IFRS software and software-related service revenue was €13.25 billion (2011: €11.35 billion), an increase of 17% (13% at constant currencies). This exceeded SAP’s non-IFRS software and software-related service revenue guidance which was the high end of the 10.5 – 12.5% range at constant currencies. IFRS total revenue was €16.22 billion (2011: €14.23 billion), an increase of 14%. Non-IFRS total revenue was €16.30 billion (2011: €14.26 billion), an increase of 14% (10% at constant currencies).

IFRS operating profit was €4.06 billion (2011: €4.88 billion), a decrease of 17%. Non-IFRS operating profit was €5.21 billion (2011: €4.71 billion), an increase of 11% (€5.02 billion at constant currencies, an increase of 7%). This was slightly below SAP’s non-IFRS operating profit guidance (which was in a range of €5.05 - €5.25 billion at constant currencies) due to the company’s continued investments in key innovations as well as the expansion of SAP’s global go-to-market activities. IFRS operating margin was 25.1% (2011: 34.3%), a decrease of 9.2 percentage points. Non-IFRS operating margin was 32.0% (2011: 33.0%), or 31.9% at constant currencies, a decrease of 1.0 percentage points (a decrease of 1.1 percentage points at constant currencies).

IFRS operating profit and IFRS operating margin for the full year 2012 were impacted by share-based compensation expense of €519 million (2011: €68 million) and acquisition-related charges of €537 million (2011: €448 million). Share-based compensation expenses significantly increased primarily due to the implementation of new share-based compensation plans as well as the strong performance of SAP’s share price in 2012. Additionally, for the full year 2011, the reduction of the provision for the TomorrowNow litigation resulted in a significant profit from the discontinued TomorrowNow activities. This had a 5.1 percentage point positive influence on the SAP’s full year 2011 IFRS operating margin. For this reason the 2012 and 2011 IFRS profit and margin numbers are not fully comparable.

Operating profit and operating margin for the full year 2012 were impacted by SAP’s continued investments in its global go-to-market activities and its cloud business. Total headcount for the group grew year-over-year by almost 8,700 FTEs (thereof more than 4,800 FTEs from acquisitions).

IFRS profit after tax was €2.83 billion (2011: €3.44 billion), a decrease of 18%. Non-IFRS profit after tax was €3.61 billion (2011: €3.37 billion), an increase of 7%. IFRS basic earnings per share was €2.37 (2011: €2.89), a decrease of 18%. Non-IFRS basic earnings per share was €3.03 (2011: €2.83), an increase of 7%. The IFRS and non-IFRS effective tax rates in the full year 2012 were 26.1% (2011: 27.9%) and 27.4% (2011: 26.6%), respectively.

Operating cash flow was €3.65 billion (2011: €3.78 billion), a decrease of 3%. Free cash flow was €3.11 billion (2011: €3.33 billion), a decrease of 7%. Free cash flow was 19% of total revenue (2011: 23%). At December 31, 2012, SAP had a total group liquidity of €2.49 billion (December 31, 2011: €5.60 billion), which includes cash and cash equivalents and short term investments. Net liquidity at December 31, 2012 was -€2.50 billion compared to €1.64 billion at December 31, 2011. This decrease in net liquidity was primarily the result of the annual shareholder dividend payment and the acquisition of SuccessFactors and Ariba in 2012.

BUSINESS OUTLOOK

SAP is providing the following outlook for the full year 2013:

 

   

The Company expects full year 2013 non-IFRS software & cloud subscriptions revenue to increase in a range of 14% – 20% at constant currencies (2012: €5.00 billion). The full year 2013 non-IFRS cloud subscription and support revenue contributing to this growth is expected to be around €750 million at constant currencies (2012: €342 million).


SAP Reports Preliminary Fourth Quarter 2012 Results      Page  5   

 

 

   

The Company expects full-year 2013 non-IFRS software and software-related service revenue to increase in a range of 11% – 13% at constant currencies (2012: €13.25 billion).

 

   

The Company expects full-year 2013 non-IFRS operating profit to be in a range of €5.85 billion – €5.95 billion at constant currencies (2012: €5.21 billion).

 

   

The Company projects a full-year 2013 IFRS effective tax rate of 25.5% – 26.5% (2012: 26.1%) and a non-IFRS effective tax rate of 27.0% – 28.0% (2012: 27.4%).


SAP Reports Preliminary Fourth Quarter 2012 Results      Page  6   

 

Additional Information

The financial information presented above reflects the results of the acquisitions of SuccessFactors starting on February 21, 2012 and Ariba starting on October 1, 2012. Except as described in Explanation of Non-IFRS Measures, no amounts have been reflected in SAP’s results in respect of either company prior to the date of acquisition.

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.

# #

2012 Integrated Report and Annual Report

SAP’s 2012 Integrated Report, SAP’s 2012 Annual Report to Shareholders (a subset of SAP’s 2012 Integrated Report) and SAP’s 2012 Annual Report on Form 20-F are scheduled to be published on March 22, 2013, and will be available for download at www.sap.com/investor.

Webcast

SAP senior management will host a press conference in Walldorf today at 10:00 AM (CET) / 9:00 AM (GMT) / 4:00 AM (Eastern) / 1:00 AM (Pacific), followed by a financial analyst call at 2:00 PM (CET) / 1:00 PM (GMT) / 8:00 AM (Eastern) / 5:00 AM (Pacific). Both conferences will be web cast live on the Company’s website at www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the full-year and quarterly results and the 2013 outlook can be found 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 232,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

# # #

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© 2013 SAP AG. All rights reserved.

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

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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.


SAP Reports Preliminary Fourth Quarter 2012 Results      Page  7   

 

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Appendix – Financial Information to Follow


LOGO

FINANCIAL INFORMATION

FOR THE FOURTH QUARTER 2012

(Condensed and Unaudited)

 

     Page  

Financial Statements (IFRS)

  

Income Statements – Quarter

     F1   

Income Statements – Twelve 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 December 31

 

€ millions, unless
otherwise stated

   2012      2011      Change
in %
 

Software

     1,937         1,779         9   

Cloud subscriptions and support

     126         6         2,000   

Software & cloud subscription

     2,063         1,785         16   

Support

     2,165         1,936         12   

Software and software-related service revenue

     4,227         3,721         14   

Consulting

     612         615         0   

Other services

     183         163         12   

Professional services and other service revenue

     795         778         2   

Total revenue

     5,022         4,499         12   

Cost of software and software-related services

     –732         –604         21   

Cost of professional services and other services

     –634         –576         10   

Total cost of revenue

     1,367         1,180         16   

Gross profit

     3,655         3,319         10   

Research and development

     –630         –537         17   

Sales and marketing

     –1,149         –941         22   

General and administration

     –306         –200         53   

Restructuring

     0         –2         –100   

TomorrowNow litigation

     2         6         –67   

Other operating income/expense, net

     20         23         –13   

Total operating expenses

     3,431         2,831         21   

Operating profit

     1,591         1,668         5   

Other non-operating income/expense, net

     28         41         32   

Finance income

     21         46         –54   

Finance costs TomorrowNow litigation

     0         1         –100   

Other finance costs

     –56         –50         12   

Finance costs

     –56         –49         14   

Financial income, net

     35         3         >100   

Profit before tax

     1,528         1,624         6   

Income tax TomorrowNow litigation

     –1         –5         –80   

Other income tax expense

     –423         –422         0   

Income tax expense

     –424         –427         –1   

Profit after tax

     1,104         1,197         8   

Profit attributable to non-controlling interests

     0         0         0   

Profit attributable to owners of parent

     1,104         1,197         –8   
        

Basic earnings per share, in €*

     0.93         1.01         8   

Diluted earnings per share, in €*

     0.92         1.01         8   

 

* For the three months ended December 31, 2012 and 2011, the weighted average number of shares was 1,192 million (diluted 1,194 million) and 1,190 million (diluted: 1,190 million), respectively (treasury stock excluded).

 

F1


CONSOLIDATED INCOME STATEMENTS

For the twelve months ended December 31

 

€ millions, unless
otherwise stated

   2012      2011      Change
in %
 

Software

     4,658         4,107         13   

Cloud subscriptions and support

     270         18         1,400   

Software & cloud subscription

     4,928         4,125         19   

Support

     8,236         7,194         14   

Software and software-related service revenue

     13,164         11,319         16   

Consulting

     2,442         2,341         4   

Other services

     616         573         8   

Professional services and other service revenue

     3,058         2,914         5   

Total revenue

     16,222         14,233         14   

Cost of software and software-related services

     –2,476         –2,107         18   

Cost of professional services and other services

     –2,522         –2,248         12   

Total cost of revenue

     4,998         4,355         15   

Gross profit

     11,224         9,878         14   

Research and development

     –2,268         –1,939         17   

Sales and marketing

     –3,935         –3,081         28   

General and administration

     –970         –715         36   

Restructuring

     –8         –4         100   

TomorrowNow litigation

     0         717         –100   

Other operating income/expense, net

     21         25         –16   

Total operating expenses

     12,158         9,352         30   

Operating profit

     4,064         4,881         17   

Other non-operating income/expense, net

     173         75         >100   

Finance income

     107         123         –13   

Finance costs TomorrowNow litigation

     –1         8         <-100   

Other finance costs

     –174         –169         3   

Finance costs

     –175         –161         9   

Financial income, net

     68         38         79   

Profit before tax

     3,823         4,768         20   

Income tax TomorrowNow litigation

     0         –281         –100   

Other income tax expense

     –996         –1,048         –5   

Income tax expense

     –996         –1,329         –25   

Profit after tax

     2,826         3,439         18   

Profit attributable to non-controlling interests

     0         1         –100   

Profit attributable to owners of parent

     2,826         3,438         –18   
        

Basic earnings per share, in €*

     2.37         2.89         18   

Diluted earnings per share, in €*

     2.37         2.89         18   

 

* For the twelve months ended December 31, 2012 and 2011, the weighted average number of shares was 1,191 million (diluted 1,192 million) and 1,189 million (diluted: 1,190 million), respectively (treasury stock excluded).

Due to rounding, numbers may not add up precisely.

 

F2


CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

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

 

€ millions

   2012      2011  

Cash and cash equivalents

     2,475         4,965   

Other financial assets

     154         817   

Trade and other receivables

     3,915         3,493   

Other non-financial assets

     332         187   

Tax assets

     157         207   

Total current assets

     7,033         9,669   

Goodwill

     13,274         8,711   

Intangible assets

     3,234         2,024   

Property, plant, and equipment

     1,710         1,551   

Other financial assets

     633         538   

Trade and other receivables

     88         84   

Other non-financial assets

     68         39   

Tax assets

     173         146   

Deferred tax assets

     655         465   

Total non-current assets

     19,836         13,558   

Total assets

     26,870         23,227   

 

F3


€ millions

   2012      2011  

Trade and other payables

     911         937   

Tax liabilities

     552         409   

Financial liabilities

     802         1,331   

Other non-financial liabilities

     2,107         1,981   

Provision TomorrowNow litigation

     234         231   

Other provisions

     699         331   

Provisions

     933         562   

Deferred income

     1,383         1,046   

Total current liabilities

     6,689         6,266   

Trade and other payables

     45         43   

Tax liabilities

     391         408   

Financial liabilities

     4,445         2,925   

Other non-financial liabilities

     98         92   

Provisions

     393         268   

Deferred tax liabilities

     572         474   

Deferred income

     64         44   

Total non-current liabilities

     6,007         4,254   

Total liabilities

     12,696         10,520   

Issued capital

     1,229         1,228   

Share premium

     492         419   

Retained earnings

     13,976         12,466   

Other components of equity

     –194         –37   

Treasury shares

     –1,337         –1,377   

Equity attributable to owners of parent

     14,166         12,699   

Non-controlling interests

     8         8   

Total equity

     14,174         12,707   

Equity and liabilities

     26,870         23,227   

 

F4


CONSOLIDATED STATEMENTS OF CASH FLOWS

For the twelve months ended December 31

 

€ millions

  2012     2011  

Profit after tax

    2,826        3,439   

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

   

Depreciation and amortization

    863        724   

Income tax expense

    996        1,329   

Financial income, net

    68        38   

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

    –24        –18   

Other adjustments for non-cash items

    31        14   

Decrease/increase in trade receivables

    –297        –426   

Decrease/increase in other assets

    –72        –59   

Decrease/increase in trade payables, provisions and other liabilities

    207        –380   

Decrease/increase in deferred income

    153        121   

Cash outflows due to TomorrowNow litigation

    7        –52   

Interest paid

    –164        –139   

Interest received

    92        92   

Income taxes paid, net of refunds

    –1,034        –908   

Net cash flows from operating activities

    3,652        3,775   

Business combinations, net of cash and cash equivalents acquired

    –5,898        –179   

Cash payments for derivative instruments related to business combinations

    –26        –9   

Total cash outflows for business combinations, net of cash and cash equivalents acquired

    –5,924        –188   

Purchase of intangible assets and property, plant, and equipment

    –543        –445   

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

    39        55   

Purchase of equity or debt instruments of other entities

    –1,022        –2,046   

Proceeds from sales of equity or debt instruments of other entities

    1,654        1,398   

Net cash flows from investing activities

    5,796        1,226   

Purchase of non-controlling interests

    0        –28   

Dividends paid

    –1,310        –713   

Purchase of treasury shares

    –53        –246   

Proceeds from reissuance of treasury shares

    90        251   

Proceeds from issuing shares (share-based compensation)

    15        46   

Proceeds from borrowings

    5,778        519   

Repayments of borrowings

    –4,714        –1,005   

Net cash flows from financing activities

    194        1,176   

Effect of foreign exchange rates on cash and cash equivalents

    152        74   

Net decrease/increase in cash and cash equivalents

    2,490        1,447   

Cash and cash equivalents at the beginning of the period

    4,965        3,518   

Cash and cash equivalents at the end of the period

    2,475        4,965   

 

F5


SUPPLEMENTARY FINANCIAL INFORMATION

(UNAUDITED)

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 December 31  

€ millions, unless
otherwise stated

  2012     2011     Change in %  
    IFRS     Adj.*     Non-
IFRS*
    Currency
impact**
    Non-IFRS
constant
currency**
    IFRS     Adj.*     Non-
IFRS*
    IFRS     Non-
IFRS*
    Non-IFRS
constant
currency**
 

Revenue Numbers

                                                                                       

Software

    1,937        0        1,937        –12        1,925        1,779        0        1,779        9        9        8   

Cloud subscriptions and support

    126        33        159        –5        154        6        0        6        2,000        2,691        2,608   

Software & cloud subscription

    2,063        33        2,096        –17        2,079        1,785        0        1,785        16        17        16   

Support

    2,165        5        2,170        –42        2,128        1,936        1        1,937        12        12        10   

Software and software-related service revenue

    4,227        38        4,265        58        4,207        3,721        1        3,722        14        15        13   

Consulting

    612        0        612        –14        598        615        0        615        0        0        –3   

Other services

    183        0        183        –3        180        163        0        163        12        12        10   

Professional services and other service revenue

    795        0        795        17        778        778        0        778        2        2        0   

Total revenue

    5,022        38        5,061        75        4,985        4,499        1        4,500        12        12        11   

Operating Expense Numbers

                                                                                       

Cost of software and software-related services

    –732        84        –648            –604        69        –535        21        21     

Cost of professional services and other services

    –634        30        –605                        –576        5        –571        10        6           

Total cost of revenue

    1,367        114        1,253                        1,180        74        1,106        16        13           

Gross profit

    3,655        152        3,808            3,319        75        3,394        10        12     

Research and development

    –630        47        –583            –537        5        –532        17        10     

Sales and marketing

    –1,149        74        –1,075            –941        32        –909        22        18     

General and administration

    –306        101        –205            –200        7        –193        53        6     

Restructuring

    0        0        0            –2        2        0        –100        0     

TomorrowNow litigation

    2        –2        0            6        –6        0        –67        0     

Other operating income/expense, net

    20        0        20                        23        0        23        –13        –13           

Total operating expenses

    3,431        334        3,096        55        3,041        2,831        112        2,719        21        14        12   

Profit Numbers

                                                                                       

Operating profit

    1,591        373        1,964        20        1,944        1,668        113        1,781        5        10        9   

Other non-operating income/expense, net

    28        0        28            41        0        41        32        32     

Finance income

    21        0        21            46        0        46        –54        –54     

Finance costs TomorrowNow litigation

    0        0        0            1        –1        0        –100        0     

Other finance costs

    –56        0        –56            –50        0        –50        12        12     

Finance costs

    –56        0        –56                        –49        –1        –50        14        12           

Financial income, net

    35        0        35                        3        1        4        >100        >100           

Profit before tax

    1,528        373        1,901            1,624        112        1,736        6        10     

Income tax TomorrowNow litigation

    –1        1        0            –5        5        0        –80        0     

Other income tax expense

    –423        –119        –542            –422        –37        –459        0        18     

Income tax expense

    –424        –118        –542                        –427        –32        –459        –1        18           

Profit after tax

    1,104        255        1,359            1,197        81        1,277        8        6     

Profit attributable to non-controlling interests

    0        0        0            0        0        0        0        0     

Profit attributable to owners of parent

    1,104        255        1,359            1,197        81        1,277        –8        6     

Key Ratios

                                                                                       

Operating margin in %

    31.7          38.8          39.0        37.1          39.6        5.4pp        0.8pp        0.6pp   

Effective tax rate in %

    27.7          28.5            26.3          26.4        1.4pp        2.1pp     

Basic earnings per share, in €*

    0.93          1.14            1.01          1.07        8        7     

 

F6


    for the twelve months ended December 31  

€ millions, unless

otherwise stated

  2012     2011     Change in %  
    IFRS     Adj.*     Non-
IFRS*
    Currency
impact**
    Non-IFRS
constant
currency**
    IFRS     Adj.*     Non-
IFRS*
    IFRS     Non-
IFRS*
    Non-IFRS
constant
currency**
 

Revenue Numbers

                                                                                       

Software

    4,658        0        4,658        –134        4,524        4,107        0        4,107        13        13        10   

Cloud subscriptions and support

    270        72        342        –20        322        18        0        18        1,400        1,839        1,717   

Software & cloud subscription

    4,928        72        5,000        –154        4,846        4,125        0        4,125        19        21        17   

Support

    8,236        8        8,244        –286        7,958        7,194        27        7,221        14        14        10   

Software and software-related service revenue

    13,164        81        13,245        441        12,805        11,319        27        11,346        16        17        13   

Consulting

    2,442        0        2,442        –95        2,347        2,341        0        2,341        4        4        0   

Other services

    616        1        617        –19        599        573        0        573        8        8        5   

Professional services and other service revenue

    3,058        0        3,058        113        2,945        2,914        0        2,914        5        5        1   

Total revenue

    16,222        81        16,303        553        15,750        14,233        27        14,260        14        14        10   

Operating Expense Numbers

                                                                                       

Cost of software and software-related services

    –2,476        338        –2,138            –2,107        285        –1,822        18        17     

Cost of professional services and other services

    –2,522        138        –2,384                        –2,248        32        –2,216        12        8           

Total cost of revenue

    4,998        475        4,522                        4,355        317        4,038        15        12           

Gross profit

    11,224        557        11,781            9,878        344        10,222        14        15     

Research and development

    –2,268        144        –2,124            –1,939        41        –1,898        17        12     

Sales and marketing

    –3,935        251        –3,684            –3,081        127        –2,954        28        25     

General and administration

    –970        186        –784            –715        30        –685        36        14     

Restructuring

    –8        8        0            –4        4        0        100        0     

TomorrowNow litigation

    0        0        0            717        –717        0        –100        0     

Other operating income/expense, net

    21        0        21                        25        0        25        –16        –16           

Total operating expenses

    12,158        1,064        11,094        362        10,732        9,352        198        9,550        30        16        12   

Profit Numbers

                                                                                       

Operating profit

    4,064        1,145        5,209        192        5,018        4,881        171        4,710        17        11        7   

Other non-operating income/expense, net

    173        0        173            75        0        75        >100        >100     

Finance income

    107        0        107            123        0        123        –13        –13     

Finance costs TomorrowNow litigation

    –1        1        0            8        –8        0        <-100        0     

Other finance costs

    –174        0        –174            –169        0        –169        3        3     

Finance costs

    –175        1        –174                        –161        –8        –169        9        3           

Financial income, net

    68        1        67                        38        8        46        79        46           

Profit before tax

    3,823        1,146        4,969            4,768        179        4,589        20        8     

Income tax TomorrowNow litigation

    0        0        0            –281        281        0        –100        0     

Other income tax expense

    –996        –365        –1,361            –1,048        –174        –1,222        –5        11     

Income tax expense

    –996        –365        –1,361                        –1,329        107        –1,222        –25        11           

Profit after tax

    2,826        781        3,608            3,439        72        3,367        18        7     

Profit attributable to non-controlling interests

    0        0        0            1        0        1        –100        –100     

Profit attributable to owners of parent

    2,826        781        3,607            3,438        –72        3,366        –18        7     

Key Ratios

                                                                                       

Operating margin in %

    25.1          32.0          31.9        34.3          33.0        9.2pp        1.0pp        1.1pp   

Effective tax rate in %

    26.1          27.4            27.9          26.6        1.8pp        0.8pp     

Basic earnings per share, in €*

    2.37          3.03            2.89          2.83        18        7     

 

* 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

  10/01/ -
12/31/2012
    1/1/ -
12/31/2012
    10/01/ -
12/31/2011
    1/1/ -
12/31/2011
 

Software and software-related service revenue (IFRS)

    4,227        13,164        3,721        11,319   

Adjustment for deferred revenue write-down

    38        81        1        27   

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

    4,265        13,245        3,722        11,346   

Operating profit (IFRS)

    1,591        4,064        1,668        4,881   

Revenue Adjustments (per above)

    38        81        1        27   

Adjustment for discontinued activities

    –2        0        –6        –717   

Adjustment for acquisition-related charges

    151        537        116        448   

Adjustment for stock-based compensation expenses

    185        519        1        68   

Adjustment for restructuring

    0        8        2        4   

Operating expense adjustments

    334        1,064        112        198   

Operating profit adjustments

    373        1,145        113        171   

Operating profit (Non-IFRS)

    1,964        5,209        1,781        4,710   

Profit after tax (IFRS)

    1,104        2,826        1,197        3,439   

Revenue adjustments (per above)

    38        81        1        27   

Operating profit adjustments (per above)

    334        1,064        112        198   

Financial income, net adjustments

    0        1        1        8   

Adjustments pre-tax

    373        1,146        112        179   

Taxes on adjustments

    118        365        32        107   

Profit after tax (Non-IFRS)

    1,359        3,608        1,277        3,367   

Due to rounding, numbers may not add up precisely.

 

F8


REVENUE BY REGION

The following table presents our IFRS and non-IFRS revenue by region. Software revenue by region is based on location of negotiation and customer location whereas Software & Cloud Subscription revenue by region, software and software-related service revenue by region and total revenue by region are 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.

Software revenue by Places where Contracts were Negotiated

 

    for the three months ended December 31  

€ millions

  2012     2011     Change in %  
    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

    937        0        937        –7        930        865        0        865        8        8        8   

Americas

    643        0        643        –1        642        625        0        625        3        3        3   

APJ

    357        0        357        –4        353        290        0        290        23        23        22   

Software revenue

    1,937        0        1,937        12        1,925        1,779        0        1,779        9        9        8   
Revenues by Location of Customers                                            
    for the three months ended December 31  

€ millions

  2012     2011     Change in %  
    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

    936        0        936        –7        929        863        0        863        8        8        8   

Americas

    643        0        643        –1        642        627        0        627        3        3        2   

APJ

    357        0        357        –4        353        290        0        290        23        23        22   

Software revenue

    1,937        0        1,937        12        1,925        1,779        0        1,779        9        9        8   
                     

Software & cloud subscription revenue by region

                                                                                       

EMEA

    958        0        958        –7        951        867        0        867        10        10        10   

Americas

    740        33        773        –6        767        629        0        629        18        23        22   

APJ

    365        0        365        –4        361        290        0        290        26        26        24   

Software & cloud subscription revenue

    2,063        33        2,096        17        2,079        1,785        0        1,785        16        17        16   
                     

Software and software-related service revenue by region

                                                                                       

Germany

    575        0        575        0        575        578        0        578        –1        –1        –1   

Rest of EMEA

    1,441        0        1,441        –19        1,422        1,260        0        1,260        14        14        13   

Total EMEA

    2,015        0        2,015        18        1,997        1,838        0        1,838        10        10        9   

United States

    1,081        38        1,119        –29        1,090        895        0        895        21        25        22   

Rest of Americas

    411        0        411        4        415        379        0        379        8        8        9   

Total Americas

    1,492        38        1,530        25        1,505        1,274        1        1,274        17        20        18   

Japan

    209        0        209        5        214        182        0        182        15        15        18   

Rest of APJ

    511        0        511        –20        491        428        0        428        19        19        15   

Total APJ

    720        0        720        15        705        609        0        609        18        18        16   

Software and software-related service revenue

    4,227        38        4,265        58        4,207        3,721        1        3,722        14        15        13   
                     

Total revenue by region

                                                                                       

Germany

    712        0        712        0        712        729        0        729        –2        –2        –2   

Rest of EMEA

    1,673        0        1,673        –22        1,651        1,501        0        1,501        11        11        10   

Total EMEA

    2,386        0        2,386        22        2,364        2,231        0        2,231        7        7        6   

United States

    1,310        38        1,348        –38        1,310        1,108        0        1,108        18        22        18   

Rest of Americas

    501        0        501        3        504        462        0        462        8        8        9   

Total Americas

    1,811        38        1,849        35        1,814        1,569        1        1,570        15        18        16   

Japan

    232        0        232        5        237        202        0        202        15        15        17   

Rest of APJ

    594        0        594        –23        571        497        0        497        20        20        15   

Total APJ

    825        0        825        17        808        699        0        699        18        18        16   

Total revenue

    5,022        38        5,061        75        4,985        4,499        1        4,500        12        12        11   

 

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Software revenue by Places where Contracts were Negotiated

 

    for the twelve months ended December 31  

€ millions

  2012     2011     Change in %  
    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

    2,005        0        2,005        –19        1,986        1,852        0        1,852        8        8        7   

Americas

    1,774        0        1,774        –78        1,696        1,534        0        1,534        16        16        11   

APJ

    879        0        879        –37        842        722        0        722        22        22        17   

Software revenue

    4,658        0        4,658        134        4,524        4,107        0        4,107        13        13        10   
Revenues by Location of Customers                                      
    for the twelve months ended December 31  

€ millions

  2012     2011     Change in %  
    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

    2,041        0        2,041        –24        2,017        1,851        0        1,851        10        10        9   

Americas

    1,733        0        1,733        –73        1,660        1,534        0        1,534        13        13        8   

APJ

    884        0        884        –37        847        722        0        722        22        22        17   

Software revenue

    4,658        0        4,658        134        4,524        4,107        0        4,107        13        13        10   
                     

Software & cloud subscription revenue by region

                                                                                       

EMEA

    2,107        0        2,107        –27        2,080        1,864        0        1,864        13        13        12   

Americas

    1,920        72        1,992        –89        1,903        1,540        0        1,540        25        29        24   

APJ

    901        0        901        –38        863        722        0        722        25        25        20   

Software & cloud subscription revenue

    4,928        72        5,000        154        4,846        4,125        0        4,125        19        21        17   
                     

Software and software-related service revenue

                                                                                       

Germany

    1,820        0        1,820        0        1,820        1,726        0        1,726        5        5        5   

Rest of EMEA

    4,285        1        4,286        –61        4,225        3,803        8        3,811        13        12        11   

Total EMEA

    6,105        1        6,106        61        6,045        5,529        8        5,537        10        10        9   

United States

    3,537        80        3,617        –249        3,368        2,870        15        2,885        23        25        17   

Rest of Americas

    1,283        0        1,283        –9        1,274        1,088        2        1,090        18        18        17   

Total Americas

    4,820        80        4,900        258        4,642        3,958        17        3,975        22        23        17   

Japan

    699        0        699        –44        655        579        1        580        21        21        13   

Rest of APJ

    1,540        0        1,540        –78        1,462        1,253        1        1,254        23        23        17   

Total APJ

    2,239        0        2,239        122        2,117        1,832        2        1,834        22        22        15   

Software and software-related service revenue

    13,164        81        13,245        441        12,805        11,319        27        11,346        16        17        13   
                     

Total revenue by region

                                                                                       

Germany

    2,379        1        2,380        –1        2,379        2,347        0        2,347        1        1        1   

Rest of EMEA

    5,106        1        5,107        –74        5,033        4,644        8        4,652        10        10        8   

Total EMEA

    7,485        1        7,487        75        7,412        6,991        7        6,998        7        7        6   

United States

    4,461        80        4,541        –319        4,222        3,699        15        3,714        21        22        14   

Rest of Americas

    1,639        0        1,639        –17        1,622        1,392        1        1,393        18        18        16   

Total Americas

    6,100        80        6,180        336        5,844        5,091        16        5,107        20        21        14   

Japan

    789        0        789        –50        739        652        1        653        21        21        13   

Rest of APJ

    1,848        0        1,848        –93        1,755        1,499        2        1,501        23        23        17   

Total APJ

    2,637        0        2,637        144        2,493        2,151        3        2,154        23        22        16   

Total revenue

    16,222        81        16,303        553        15,750        14,233        27        14,260        14        14        10   

 

* 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 figures, see our Web site www.sap.com/corporate-en/investors/newsandreports/reporting-framework.epx under “Non-IFRS Measures and Estimates”.

Due to rounding, numbers may not add up precisely.

 

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