EX-99.1 2 d525784dex991.htm EXHIBIT 99.1 Exhibit 99.1

Exhibit 99.1

 

LOGO

For Immediate Release

April 19, 2013

SAP Announces First Quarter 2013 Results – Non-IFRS Software and Cloud Subscription Revenue Increased 25% at Constant Currencies

 

 

First Quarter 2013 Non-IFRS Software and Cloud Subscription Revenue Increased 23% to €824 Million (25% at Constant Currencies)

 

 

First Quarter 2013 Non-IFRS Software and Software-Related Service Revenue Increased 12% to €2.94 Billion (14% at Constant Currencies)

 

 

13th Consecutive Quarter of Double-Digit Growth in Non-IFRS Software and Software-Related Service Revenue

 

 

Exceptional Growth for SAP HANA: SAP’s Flagship In-Memory Platform Tripled Software Revenue Year-Over-Year

 

 

Strong Cloud Momentum: Annual Cloud Revenue Run Rate Approaching €900 Million

 

 

First Quarter 2013 Non-IFRS Operating Profit Increased 8% to €901 Million (11% at Constant Currencies)

 

 

First Quarter Non-IFRS EPS Increased 18% to €0.58

 

 

SAP Reiterates Full Year 2013 Outlook

WALLDORF, Germany – April 19, 2013 – SAP AG (NYSE: SAP) today announced its financial results for the first quarter ended March 31, 2013.

BUSINESS HIGHLIGHTS IN THE FIRST QUARTER 2013

SAP had a solid start to 2013 with 23% (25% at constant currencies) growth in non-IFRS software and cloud subscription revenue. SAP achieved €824 million in non-IFRS software and cloud subscription revenue in the first quarter.

The Americas region delivered a strong first quarter, with non-IFRS software and cloud subscription revenue growing by 49% (51% at constant currencies), driven by excellent software revenue performance in Latin America and strong cloud subscription and support revenue growth in North America. The EMEA region saw solid growth of 13% (15% at constant currencies) in non-IFRS software and cloud subscription revenue, which is impressive in light of continued market uncertainty. Strong year-on-year software revenue growth rates in many markets including Russia, Switzerland, and the UK contributed to this performance. Non-IFRS software and cloud subscription revenue in the Asia Pacific Japan (APJ) region declined, as several markets in APJ started more slowly in 2013 after a record fourth quarter in 2012 and new leadership in some markets. The company expects the APJ region to be back on track in the second quarter.

SAP HANA continues to be a major growth engine for SAP. SAP HANA software revenue tripled year-on-year, contributing €86 million to software revenue this quarter. The company also continues to expand its market leadership with strong double-digit growth in its mobile business.


SAP Reports First Quarter 2013 Results      Page  2   

 

The Company sees continued strong growth in the cloud. With the most comprehensive portfolio of cloud solutions, SAP’s annual cloud revenue run rate is approaching €900 million1. First quarter 2013 Non-IFRS cloud subscription and support revenue was €167 million, up 380% year-over-year. Non-IFRS deferred cloud subscription and support revenue2 was €377 million as of March 31, 2013, which is a year-over-year increase of 95%. The Company’s cloud subscription and support backlog3 as of December 31, 2012 was €800 million. SAP’s cloud applications total subscribers now exceed 24 million. For the Ariba segment the trailing twelve month network spend volume4 was approximately $460 billion. More than 1 million companies are connected through the Ariba network, the world’s largest Web-based business trading community.

“Our industry is at a fundamental transformation point, driven by the convergence of mobile, cloud and big data. SAP’s 25% growth shows that we are not only leading this change but also gaining significant worldwide market share,” said SAP Co-CEOs Bill McDermott and Jim Hagemann Snabe. “Customers continue to choose our innovations to help them run better, and SAP HANA is the next-generation platform for all companies to innovate their business, drive speed across the entire enterprise and reduce costs. SAP’s pipeline is strong, and we are confident that we will achieve our full-year outlook.”

“Non-IFRS software and cloud subscription revenue exceeded €800 million for the first time in a first quarter. We saw very strong revenue contribution from SAP HANA and continued growth in the cloud. The solid top line performance and continued cost discipline resulted in double-digit growth in Non-IFRS operating profit at constant currencies,” said Werner Brandt, CFO of SAP. “We are on track to deliver on our 2015 goals and our overall financial objective of profitable growth over the long term.”

 

 

1  The annual revenue run rate is the first quarter 2013 cloud division revenue multiplied by 4.
2  Starting this quarter SAP is disclosing non-IFRS deferred cloud subscription and support revenue, which is a subset of the total non-IFRS deferred revenue number reported on the balance sheet.
3  Cloud subscription and support backlog represents expected future cloud subscription and support revenue that is contracted but not yet invoiced and thus not recorded in deferred revenue.
4  Network spend volume is the total value of purchase orders transacted on the Ariba Network in the trailing 12 months.


SAP Reports First Quarter 2013 Results      Page  3   

 

FINANCIAL RESULTS IN DETAIL

FINANCIAL HIGHLIGHTS – First Quarter 2013

 

     First Quarter 20131)  
     IFRS      Non-IFRS2)  

€ million, unless otherwise stated

   Q1 2013      Q1 2012      %
change
     Q1 2013      Q1 2012      %
change
     % change
const.
curr.
 

Software

     657         637         3         657         637         3         5   

Cloud subscriptions and support

     137         29         373         167         35         380         385   

Software and cloud subscriptions

     794         666         19         824         672         23         25   

Support

     2,109         1,953         8         2,113         1,954         8         10   

Software and software-related service revenue

     2,903         2,619         11         2,937         2,626         12         14   

Total revenue

     3,601         3,350         7         3,636         3,357         8         10   

Total operating expenses

     –2,955         –2,719         9         –2,734         –2,523         8         10   

- thereof TomorrowNow litigation

     0         7         –97         0         0         0         N/A   

Operating profit

     646         631         2         901         834         8         11   

Operating margin (%)

     17.9         18.8         –0.9pp         24.8         24.8         0.0pp         0.3pp   

Profit after tax

     520         444         17         689         583         18      

Basic earnings per share (€)

     0.44         0.37         19         0.58         0.49         18      

Deferred cloud subscription and support revenue (as of March 31)

     344         120         >100         377         193         95         N/A   

Number of employees (FTE)

     64,598         59,420         9         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 F6 in the appendix to this press release.

IFRS and non-IFRS software revenue was €657 million (2012: €637 million), an increase of 3% (5% at constant currencies). IFRS software and cloud subscription revenue was €794 million (2012: €666 million), an increase of 19%. Non-IFRS software and cloud subscription revenue was €824 million (2012: €672million), an increase of 23% (25% at constant currencies). IFRS software and software-related service revenue was €2.90 billion (2012: €2.62 billion), an increase of 11%. Non-IFRS software and software-related service revenue was €2.94 billion (2012: €2.63 billion), an increase of 12% (14% at constant currencies). IFRS total revenue was €3.60 billion (2012: €3.35 billion), an increase of 7%. Non-IFRS total revenue was €3.64 billion (2012: €3.36 billion), an increase of 8% (10% at constant currencies).

IFRS operating profit was €646 million (2012: €631 million), an increase of 2%. Non-IFRS operating profit was €901 million (2012: €834 million), an increase of 8% (11% at constant currencies). IFRS operating margin was 17.9% (2012: 18.8%), a decrease of 0.9 percentage points, mainly due to acquisitions. Non-IFRS operating margin was 24.8% (2012: 24.8%). Non-IFRS operating margin was 25.1% at constant currencies, an increase of 0.3 percentage points. Non-IFRS operating profit and operating margin for the first quarter 2013 were affected by the acquisition of SuccessFactors and Ariba, which impacted the operating margin by approximately 80 basis points. The organic margin performance demonstrates that efficiency in SAP’s core business has improved further.

IFRS profit after tax was €520 million (2012: €444 billion), an increase of 17%. Non-IFRS profit after tax was €689 million (2012: €583 million), an increase of 18%. IFRS basic earnings per share was €0.44 (2012: €0.37), an increase of 19%. Non-IFRS basic earnings per share was €0.58 (2012: €0.49), an increase of 18%. The IFRS and non-IFRS effective tax rates were 16.3% (2012: 26.9%) and 21.4% (2012: 28.1%), respectively. The year-over-year decrease in the effective tax rate in the first quarter mainly results from the regional allocation of income, from taxes for prior years and from tax effects on changes in foreign currency exchange rates.


SAP Reports First Quarter 2013 Results      Page  4   

 

Operating cash flow was €2.16 billion (2012: €2.07 billion), an increase of 4%. Free cash flow was €2.05 billion (2012: €1.96 billion), an increase of 5%. Free cash flow was 57% of total revenue (2012: 58%). At March 31, 2013, SAP had a total group liquidity of €4.61 billion (December 31, 2012: €2.49 billion), which includes cash and cash equivalents and short term investments. Net liquidity at March 31, 2013 was -€0.45 billion compared to -€2.50 billion at December 31, 2012. The improvement of our net liquidity in the first quarter was primarily due to the strong operating cash flow in the first three months of 2013.

BUSINESS OUTLOOK

SAP reiterates the outlook for the full year 2013, which remains unchanged from the outlook provided on January 23, 2013:

 

   

The Company expects full year 2013 non-IFRS software and cloud subscription 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: €343 million).

 

   

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: 26.2%) and a non-IFRS effective tax rate of 27.0% – 28.0% (2012: 27.5%).

Additional Information

2013 revenue and profit figures include the revenue and profit from SuccessFactors and Ariba. The comparative first quarter numbers for 2012 only include SuccessFactors starting on February 21, 2012 and do not include Ariba as the acquisition did not occur until October 1, 2012.

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.

# #

First Quarter 2013 Interim Report

SAP’s first quarter 2013 Interim Report was published today and is available for download at www.sap.com/investor. The interim report includes an update on SAP’s sustainability performance.

Webcast

SAP senior management will host a conference call for financial analysts and media on Friday, April 19th at 2:00 PM (CEST) / 1:00 PM (GMT) / 8:00 AM (EDT) / 5:00 AM (PDT). The conference call will be web cast live on the Company’s website at www.sap.com/investor and will be available for replay.

2012 Integrated Report, Annual Report, and Annual Report on Form 20-F

SAP’s 2012 Integrated Report, Annual Report and Annual Report on Form 20-F were published on March 22, 2013, and are available for download at www.sap.com/investor.

About SAP

As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device


SAP Reports First Quarter 2013 Results      Page  5   

 

– 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 238,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

# # #

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.

© 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.

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

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.

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Follow SAP Investor Relations on Twitter at @sapinvestor.

Appendix – Financial Information to Follow


 

LOGO

FINANCIAL INFORMATION

FOR THE FIRST QUARTER 2013

(Condensed and Unaudited)

 

     Page  
  

Financial Statements (IFRS)

  

Income Statements – Quarter

     F1   

Statements of Financial Position

     F2-F3   

Statements of Cash Flows

     F4   

Supplementary Financial Information

  

Reconciliation from Non-IFRS Numbers to IFRS Numbers

     F5   

Non-IFRS Adjustments

     F6   

Revenue by Region

     F7   


Financial Statements (IFRS)

Consolidated Income Statements

For the three months ended March 31

 

€ millions, unless otherwise stated

   Note      2013      2012      Change
in %
 

Software

        657         637         3   

Cloud subscriptions and support

        137         29         373   

Software and cloud subscription

        794         666         19   

Support

        2,109         1,953         8   

Software and software-related service revenue

        2,903         2,619         11   

Consulting

        557         597         7   

Other services

        142         134         6   

Professional services and other service revenue

        698         731         4   
     

 

 

    

 

 

    

 

 

 

Total revenue

        3,601         3,350         7   

Cost of software and software-related services

        –604         –538         12   

Cost of professional services and other services

        –605         –624         –3   

Total cost of revenue

        1,210         1,162         4   

Gross profit

        2,391         2,188         9   

Research and development

        –557         –523         6   

Sales and marketing

        –975         –831         18   

General and administration

        –197         –209         –6   

Restructuring

        –13         0         N/A   

TomorrowNow litigation

        0         7         –97   

Other operating income/expense, net

        –3         –1         >100   
     

 

 

    

 

 

    

 

 

 

Total operating expenses

        2,955         2,719         9   
     

 

 

    

 

 

    

 

 

 

Operating profit

        646         631         2   
     

 

 

    

 

 

    

 

 

 

Other non-operating income/expense, net

        10         8         32   

Finance income

        30         24         23   

Finance costs

        –44         –40         11   
     

 

 

    

 

 

    

 

 

 

Financial income, net

        15         16         8   
     

 

 

    

 

 

    

 

 

 

Profit before tax

        621         607         2   
     

 

 

    

 

 

    

 

 

 

Income tax TomorrowNow litigation

        0         –2         –95   

Other income tax expense

        –101         –161         –38   

Income tax expense

     (6)         –101         –163         –38   
     

 

 

    

 

 

    

 

 

 

Profit after tax

        520         444         17   
     

 

 

    

 

 

    

 

 

 

Profit attributable to non-controlling interests

        0         0         N/A   

Profit attributable to owners of parent

        520         444         17   
           

Basic earnings per share, in €*

     (7)         0.44         0.37         19   
     

 

 

    

 

 

    

 

 

 

Diluted earnings per share, in €*

     (7)         0.44         0.37         19   

 

* For the three months ended March 31, 2013 and 2012, the weighted average number of shares was 1,193 million (diluted 1,195 million) and 1,190 million (diluted: 1,191 million), respectively (treasury stock excluded).

 

F1


CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As at March 31, 2013, and December 31, 2012

 

€ millions

   Notes     2013      2012  

Cash and cash equivalents

       4,473         2,477   

Other financial assets

     (8     279         154   

Trade and other receivables

     (9     3,872         3,917   

Other non-financial assets

       346         294   

Tax assets

       299         156   

Total current assets

       9,269         6,998   

Goodwill

       13,512         13,274   

Intangible assets

       3,168         3,234   

Property, plant, and equipment

       1,725         1,708   

Other financial assets

     (8     531         509   

Trade and other receivables

     (9     97         88   

Other non-financial assets

       93         68   

Tax assets

       185         170   

Deferred tax assets

       715         660   

Total non-current assets

       20,025         19,711   

Total assets

       29,294         26,710   

 

F2


€ millions

   Notes     2013      2012  

Trade and other payables

       809         870   

Tax liabilities

       552         511   

Financial liabilities

     (10     873         802   

Other non-financial liabilities

       1,471         2,136   

Provision TomorrowNow litigation

       240         234   

Other provisions

       406         609   

Provisions

       646         843   

Deferred income

     (11     3,959         1,386   
    

 

 

    

 

 

 

Total current liabilities

       8,309         6,547   

Trade and other payables

       45         63   

Tax liabilities

       394         388   

Financial liabilities

     (10     4,500         4,446   

Other non-financial liabilities

       111         98   

Provisions

       382         361   

Deferred tax liabilities

       535         574   

Deferred income

     (11     65         62   
    

 

 

    

 

 

 

Total non-current liabilities

       6,032         5,991   

Total liabilities

       14,341         12,538   

Issued capital

       1,229         1,229   

Share premium

       508         492   

Retained earnings

       14,500         13,973   

Other components of equity

       41         –194   

Treasury shares

       –1,334         –1,337   

Equity attributable to owners of parent

       14,944         14,163   

Non-controlling interests

       9         8   

Total equity

     (12     14,953         14,171   

Equity and liabilities

       29,294         26,710   

 

F3


CONSOLIDATED STATEMENTS OF CASH FLOWS

For the three months ended March 31

 

€ millions

   2013      2012  

Profit after tax

     520         444   

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

     

Depreciation and amortization

     233         192   

Income tax expense

     101         163   

Financial income, net

     15         16   

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

     24         28   

Other adjustments for non-cash items

     17         –30   

Decrease/increase in trade and other receivables

     97         36   

Decrease/increase in other assets

     –81         –89   

Decrease/increase in trade payables, provisions and other liabilities

     –881         –688   

Decrease/increase in deferred income

     2,446         2,277   

Interest paid

     –7         –28   

Interest received

     15         26   

Income taxes paid, net of refunds

     –337         –276   
  

 

 

    

 

 

 

Net cash flows from operating activities

     2,162         2,071   

Business combinations, net of cash and cash equivalents acquired

     –12         –2,615   

Purchase of intangible assets and property, plant, and equipment

     –113         –113   

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

     12         13   

Purchase of equity or debt instruments of other entities

     –250         –478   

Proceeds from sales of equity or debt instruments of other entities

     143         430   
  

 

 

    

 

 

 

Net cash flows from investing activities

     –220         –2,763   

Purchase of treasury shares

     0         –53   

Proceeds from reissuance of treasury shares

     4         48   

Proceeds from issuing shares (share-based payments)

     0         10   

Proceeds from borrowings

     0         1,000   

Repayments of borrowings

     0         –600   
  

 

 

    

 

 

 

Net cash flows from financing activities

     4         405   

Effect of foreign exchange rates on cash and cash equivalents

     50         130   

Net decrease/increase in cash and cash equivalents

     1,996         –417   

Cash and cash equivalents at the beginning of the period

     2,477         4,965   

Cash and cash equivalents at the end of the period

     4,473         4,548   

 

F4


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 March 31  

€ millions, unless otherwise stated

  2013     2012     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

    657        0        657        11        668        637        0        637        3        3        5   

Cloud subscriptions and support

    137        30        167        2        169        29        6        35        373        380        385   

Software and cloud subscription

    794        30        824        13        837        666        6        672        19        23        25   

Support

    2,109        4        2,113        44        2,157        1,953        1        1,954        8        8        10   

Software and software-related service revenue

    2,903        35        2,937        56        2,994        2,619        7        2,626        11        12        14   

Consulting

    557        0        557        8        565        597        0        597        –7        –7        –5   

Other services

    142        0        142        2        144        134        0        134        6        6        8   

Professional services and other service revenue

    698        0        698        11        709        731        0        731        –4        –4        –3   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

    3,601        35        3,636        67        3,703        3,350        7        3,357        7        8        10   

Operating Expense Numbers

                     

Cost of software and software-related services

    –604        97        –507            –538        71        –467        12        8     

Cost of professional services and other services

    –605        28        –578            –624        30        –594        –3        –3     
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Total cost of revenue

    1,210        125        1,084            1,162        101        1,061        4        2     
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Gross profit

    2,391        160        2,551            2,188        108        2,296        9        11     

Research and development

    –557        22        –535            –523        23        –500        6        7     

Sales and marketing

    –975        52        –923            –831        55        –776        18        19     

General and administration

    –197        9        –188            –209        24        –185        –6        2     

Restructuring

    –13        13        0            0        0        0        N/A        0     

TomorrowNow litigation

    0        0        0            7        –7        0        –97        0     

Other operating income/expense, net

    –3        0        –3            –1        0        –1        >100        >100     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

    2,955        221        2,734        40        2,774        2,719        196        2,523        9        8        10   

Profit Numbers

                     

Operating profit

    646        255        901        27        928        631        203        834        2        8        11   

Other non-operating income/expense, net

    10        0        10            8        0        8        32        32     

Finance income

    30        0        30            24        0        24        23        23     

Finance costs

    –44        0        –44            –40        1        –39        11        14     
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Financial income, net

    15        0        15            16        1        15        8        1     
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Profit before tax

    621        255        877            607        204        811        2        8     

Income tax TomorrowNow litigation

    0        0        0            –2        2        0        –95        N/A     

Other income tax expense

    –101        –86        –188            –161        –67        –228        –38        –18     

Income tax expense

    –101        –86        –188            –163        –65        –228        –38        –18     
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

Profit after tax

    520        169        689            444        139        583        17        18     

Profit attributable to non-controlling interests

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

Profit attributable to owners of parent

    520        169        689            444        139        583        17        18     

Key Ratios

                     

Operating margin in %

    17.9          24.8          25.1        18.8          24.8        0.9pp        0.0pp        0.3pp   

Effective tax rate in %

    16.3          21.4            26.9          28.1        10.6pp        6.7pp     

Basic earnings per share, in €*

    0.44          0.58            0.37          0.49        19        18     

Deferred cloud subscriptions and support revenue (March 31)

    344        33        377            120        72        193        >100        95     

 

* 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.

 

F5


NON-IFRS ADJUSTMENTS

 

€ millions, unless otherwise stated

   01/01/ -
3/31/2013
     01/01/ -
3/31/2012
 

Software and software-related service revenue (IFRS)

     2,903         2,619   

Adjustment for deferred revenue write-down

     35         7   

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

     2,937         2,626   

Operating profit (IFRS)

     646         631   

Revenue Adjustments (per above)

     35         7   

Adjustment for discontinued activities

     0         –7   

Adjustment for acquisition-related charges

     137         120   

Adjustment for stock-based compensation expenses

     70         83   

Adjustment for restructuring

     13         0   

Operating expense adjustments

     221         196   

Operating profit adjustments

     255         203   

Operating profit (Non-IFRS)

     901         834   

Profit after tax (IFRS)

     520         444   

Revenue adjustments (per above)

     35         7   

Operating profit adjustments (per above)

     221         196   

Financial income, net adjustments

     0         1   

Adjustments pre-tax

     255         204   

Taxes on adjustments

     86         65   

Profit after tax (Non-IFRS)

     689         583   

Due to rounding, numbers may not add up precisely.

 

F6


REVENUE BY REGION

The following table presents our IFRS and non-IFRS revenue by region. Software Revenue by Region shows the breakdown by location of contract negotiation and by customer location, whereas Software and 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 Location Where Contracts Were Negotiated

 

    For the three months ended March 31  

€ millions

  2013     2012     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

    298        0        298        4        302        275        0        275        8        8        10   

Americas

    254        0        254        3        257        239        0        239        6        6        8   

APJ

    105        0        105        3        108        123        0        123        –15        –15        –12   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Software revenue

    657        0        657        11        668        637        0        637        3        3        5   
Revenues by Location of Customers                                            
    For the three months ended March 31  

€ millions

  2013     2012     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

    300        0        300        4        304        279        0        279        8        8        9   

Americas

    252        0        252        3        255        236        0        236        7        7        8   

APJ

    105        0        105        3        108        123        0        123        –15        –15        –12   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Software revenue

    657        0        657        11        668        637        0        637        3        3        5   
                     

Software and cloud subscription revenue by region

                     

EMEA

    326        0        326        5        331        289        0        289        13        13        15   

Americas

    356        30        386        4        390        253        6        259        41        49        51   

APJ

    112        0        112        4        116        125        0        125        –10        –10        –7   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Software and cloud subscription revenue

    794        30        824        13        837        666        6        672        19        23        25   
                     

Software and software-related service revenue by region

                     

Germany

    399        0        399        0        399        371        0        371        8        8        8   

Rest of EMEA

    936        0        936        14        950        862        1        863        9        8        10   

Total EMEA

    1,335        0        1,335        14        1,348        1,233        1        1,234        8        8        9   

United States

    808        35        842        5        847        692        6        698        17        21        21   

Rest of Americas

    307        0        307        15        322        255        0        255        20        20        26   

Total Americas

    1,115        35        1,150        19        1,169        946        6        952        18        21        23   

Japan

    134        0        134        22        156        144        0        144        –7        –7        8   

Rest of APJ

    319        0        319        1        320        297        0        297        7        7        8   

Total APJ

    453        0        453        23        476        440        0        440        3        3        8   

Software and software-related service revenue

    2,903        35        2,937        56        2,994        2,619        7        2,626        11        12        14   
                     

Total revenue by region

                     

Germany

    526        0        526        –1        525        517        0        517        2        2        2   

Rest of EMEA

    1,131        0        1,131        16        1,147        1,058        1        1,059        7        7        8   

Total EMEA

    1,657        0        1,657        15        1,672        1,575        1        1,576        5        5        6   

United States

    1,024        35        1,058        6        1,064        913        6        919        12        15        16   

Rest of Americas

    377        0        377        18        395        333        0        333        13        13        19   

Total Americas

    1,400        35        1,435        24        1,459        1,246        6        1,252        12        15        17   

Japan

    151        0        151        25        176        165        0        165        –8        –8        7   

Rest of APJ

    393        0        393        2        395        364        0        364        8        8        9   

Total APJ

    544        0        544        27        571        529        0        529        3        3        8   

Total revenue

    3,601        35        3,636        67        3,703        3,350        7        3,357        7        8        10   

 

F7


* 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.

 

F8