EX-99.1 2 d570792dex991.htm EXHIBIT 99.1 Exhibit 99.1

Exhibit 99.1

 

LOGO

For Immediate Release

July 18, 2013

SAP Announces Second Quarter and First Half Results 2013

Double-Digit Growth Continues in a Challenging Market – SAP Driving the Transition to the Cloud and Gaining Market Share

 

  •  

Three Years of Double-Digit Growth – Second Quarter 2013 Non-IFRS Software and Software-Related Service Revenue Increased 10% at Constant Currencies (7% at Actual Currencies to €3.35 Billion)

 

  •  

Second Quarter 2013 Non-IFRS Software and Cloud Subscription Revenue Increased 7% at Constant Currencies (3% at Actual Currencies to €1.17 Billion)

 

  •  

Triple-Digit Year-Over-Year Growth in Cloud Subscription and Support Revenue, Annual Cloud Revenue Run Rate Exceeded €930 Million

 

  •  

Expanding Leadership in In-Memory Computing with SAP HANA

 

  •  

Second Quarter 2013 Non-IFRS Operating Profit Reached €1.22 Billion, a 10% Increase at Constant Currencies (4% at Actual Currencies)

 

  •  

SAP Reaffirms Non-IFRS Operating Profit Outlook and Remains Committed to Be a Double-Digit Growth Company with an Increase of at Least 10% in Non-IFRS Software and Software-Related Service Revenue at Constant Currencies in 2013

WALLDORF, Germany – July 18, 2013 – SAP AG (NYSE: SAP) today announced its financial results for the second quarter and first half ended June 30, 2013.

BUSINESS HIGHLIGHTS IN THE SECOND QUARTER 2013

“The industry transformation we predicted back in 2010 is now happening at full speed and our strategy of innovation for growth is paying off,” said Bill McDermott and Jim Hagemann Snabe, Co-CEOs of SAP. “We continued our double-digit growth momentum, we are leading the transformation of the industry, and our market opportunity is bigger than ever. We are gaining market share in a challenging macroeconomic environment, and with the HANA Enterprise Cloud, we are resolute to capture the future as the cloud company.”

“SAP had a solid overall performance in the second quarter. We remained focused on operating discipline, resulting in double-digit growth in non-IFRS operating profit at constant currencies. We improved the profitability of our core business and see good traction in the cloud on our way towards building a profitable cloud business”, said Werner Brandt, CFO of SAP. “We reaffirm our full year 2013 Non-IFRS operating profit outlook and remain committed to double-digit topline growth despite a difficult macroeconomic environment, in particular in Asia Pacific Japan and the rapid transition to the cloud.”

Second quarter non-IFRS cloud subscription and support revenue increased 166% (171% at constant currencies) year-over-year to €183 million. SAP’s non-IFRS cloud subscription and support revenue in the second quarter outperformed many cloud competitors on a sequential quarterly growth basis. The

SAP Reports Second Quarter 2013 Results    Page 2

 

annual cloud revenue run rate has now reached €932 million1. With approximately 30 million cloud users, SAP has the largest subscriber base in the cloud market. Non-IFRS deferred cloud subscription and support revenue2 was €361 million as of June 30, 2013, a year-over-year increase of 68%. The Ariba business is showing accelerated synergies. For the Ariba segment the trailing twelve month network spend volume3 was approximately $465 billion, an increase of 27% year-over-year. More than 1.1 million companies are connected through the Ariba network, the world’s largest Web-based business trading community.

SAP HANA, the Company’s platform for real-time business applications, continues to be a major growth engine with €102 million software revenue contribution, growing 21% year-on-year. The Company continues to expect HANA software revenue of €650 – €700 million in 2013. Customers have already shown strong interest in SAP Business Suite powered by SAP HANA which was made generally available in May and – together with HANA Enterprise Cloud – is expected to drive adoption of the HANA platform.

SAP’s double-digit growth momentum continued in the second quarter with Non-IFRS software and software-related service revenue increasing 10% at constant currencies (7% at actual currencies to €3.35 billion). Non-IFRS software and cloud subscription revenue in the quarter increased 7% at constant currencies (3% at actual currencies to €1.17 billion). Non-IFRS operating profit reached €1.22 billion in quarter, a 10% increase at constant currencies (4% at actual currencies), resulting in a 60 basis points expansion of the non-IFRS operating margin at constant currencies despite a negative effect from the Ariba acquisition of 40 basis points. The margin performance demonstrates that the efficiency in SAP’s core business has further improved.

REGIONAL PERFORMANCE

Second Quarter 2013

The Americas region delivered a strong second quarter in non-IFRS software and cloud subscription revenue4 with 18% growth year-over-year, driven by excellent software revenue performance in Latin America – in particular Brazil – and strong cloud subscription and support revenue growth in North America. The EMEA region saw solid growth with non-IFRS software and cloud subscription revenue increasing 3% year-over-year, despite a continued difficult market environment and a tough year-over-year comparison. High single-digit software revenue growth in Germany contributed to this performance. Non-IFRS software and cloud subscription revenue in the Asia Pacific Japan (APJ) region declined 7%, mainly due to continued macroeconomic challenges. However, some markets in APJ, such as Southeast Asia and India, saw strong growth in software revenue.

First Half 2013

The Americas region delivered a strong first half in non-IFRS software and cloud subscription revenue with 29% growth year-over-year, driven by a very strong performance in the United States and Brazil. The EMEA region saw solid growth with non-IFRS software and cloud subscription revenue increasing 8% for the first half of 2013 which is an impressive result in light of continued market uncertainty. Non-IFRS software and cloud subscriptions revenue in the APJ region declined 7% in the first half of 2013.

 

1  The annual revenue run rate is the second quarter 2013 cloud division revenue of €233 million multiplied by 4.
2  Beginning in Q1 2013, SAP discloses 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  Network spend volume is the total value of purchase orders transacted on the Ariba Network in the trailing 12 months.
4 

Non-IFRS software and cloud subscription revenue in the regional paragraphs follow SAP’s management view, which is calculated as the combination of software revenue based on location of negotiation and cloud subscription and support revenue based on customer location; growth rates at constant currencies. See SAP’s second quarter and half year interim report for details.

SAP Reports Second Quarter 2013 Results    Page 3

 

FINANCIAL RESULTS IN DETAIL

FINANCIAL HIGHLIGHTS – Second Quarter 2013

 

     Second Quarter 20131)  
     IFRS      Non- IFRS2)  

€ million, unless otherwise stated

    Q2 2013      Q2 2012      %
change		      Q2 2013      Q2 2012      %
change		      % change
const. curr.		  

Software

      982         1,059         –7         982         1,059         –7         –3   

Cloud subscriptions and support

      159         52         206         183         69         166         171   

Software and cloud subscriptions

      1,141         1,110         3         1,165         1,127         3         7   

Support

      2,177         2,013         8         2,182         2,014         8         11   

Software and software-related service revenue

      3,318         3,124         6         3,347         3,142         7         10   

Total revenue

      4,062         3,898         4         4,091         3,916         4         8   

Total operating expenses

      –3,074         –2,977         3         –2,873         –2,743         5         7   

Operating profit

      988         921         7         1,219         1,173         4         10   

Operating margin (%)

      24.3         23.6         0.7pp         29.8         30.0         –0.2pp         0.6pp   

Profit after tax

      724         661         10         874         831         5      

Basic earnings per share (€)

      0.61         0.55         11         0.73         0.70         4      

Number of employees (FTE)

      64,937         60,972         7         N/A         N/A         N/A         N/A   

 

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

IFRS and non-IFRS software revenue was €982 million (2012: €1.06 billion), a decrease of 7% (3% at constant currencies). IFRS software and cloud subscription revenue was €1.14 billion (2012: €1.11 billion), an increase of 3%. Non-IFRS software and cloud subscription revenue was €1.17 billion (2012: €1.13 billion), an increase of 3% (7% at constant currencies). IFRS software and software-related service revenue was €3.32 billion (2012: €3.12 billion), an increase of 6%. Non-IFRS software and software-related service revenue was €3.35 billion (2012: €3.14 billion), an increase of 7% (10% at constant currencies). IFRS total revenue was €4.06 billion (2012: €3.90 billion), an increase of 4%. Non-IFRS total revenue was €4.09 billion (2012: €3.92 billion), an increase of 4% (8% at constant currencies).

IFRS operating profit was €988 million (2012: €921 million), an increase of 7%. Non-IFRS operating profit was €1.22 billion (2012: €1.17 billion), an increase of 4% (10% at constant currencies). IFRS operating margin was 24.3% (2012: 23.6%), an increase of 0.7 percentage points. Non-IFRS operating margin was 29.8% (2012: 30.0%), a decrease of 0.2 percentage points. Non-IFRS operating margin was 30.6% at constant currencies, an increase of 0.6 percentage points. Non-IFRS operating profit and operating margin for the second quarter 2013 were affected by the acquisition of Ariba, which impacted the operating margin by approximately 40 basis points.

IFRS profit after tax was €724 million (2012: €661 million), an increase of 10%. Non-IFRS profit after tax was €874 million (2012: €831 million), an increase of 5%. IFRS basic earnings per share was €0.61 (2012: €0.55), an increase of 11%. Non-IFRS basic earnings per share was €0.73 (2012: €0.70), an increase of 4%. The IFRS and non-IFRS effective tax rates were 24.8% (2012: 23.6%) and 26.8% (2012: 25.6%), respectively.

SAP Reports Second Quarter 2013 Results    Page 4

 

FINANCIAL HIGHLIGHTS – First Half 2013

 

     First-Half 20131)  
     IFRS      Non-IFRS2)  

€ million, unless otherwise stated

    1H 2013      1H 2012      %
change		      1H 2013      1H 2012      %
change		      % change
const. curr.		  

Software

      1,638         1,696         –3         1,638         1,696         –3         0   

Cloud subscriptions and support

      296         81         266         350         104         238         243   

Software and cloud subscriptions

      1,935         1,777         9         1,989         1,799         11         14   

Support

      4,286         3,966         8         4,295         3,968         8         11   

Software and software-related service revenue

      6,220         5,743         8         6,284         5,768         9         12   

Total revenue

      7,663         7,248         6         7,727         7,273         6         9   

Total operating expenses

      –6,029         –5,696         6         –5,607         –5,266         6         8   

Operating profit

      1,634         1,551         5         2,120         2,007         6         11   

Operating margin (%)

      21.3         21.4         –0.1pp         27.4         27.6         –0.2pp         0.4pp   

Profit after tax

      1,244         1,104         13         1,563         1,414         11      

Basic earnings per share (€)

      1.04         0.93         12         1.31         1.19         10      

Number of employees (FTE)

      64,937         60,972         7         N/A         N/A         N/A         N/A   

 

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

IFRS and non-IFRS software revenue was €1.64 billion (2012: €1.70 billion), a decrease of 3%, (flat at constant currencies). IFRS software and cloud subscription revenue was €1.94 billion (2012: €1.78 billion), an increase of 9%. Non-IFRS software and cloud subscription revenue was €1.99 billion (2012: €1.80 billion), an increase of 11% (14% at constant currencies). IFRS software and software-related service revenue was €6.22 billion (2012: €5.74 billion), an increase of 8%. Non-IFRS software and software-related service revenue was €6.28 billion (2012: €5.77 billion), an increase of 9% (12% at constant currencies). IFRS total revenue was €7.66 billion (2012: €7.25 billion), an increase of 6%. Non-IFRS total revenue was €7.73 billion (2012: €7.27 billion), an increase of 6% (9% at constant currencies).

IFRS operating profit was €1.63 billion (2012: €1.55 billion), an increase of 5%. Non-IFRS operating profit was €2.12 billion (2012: €2.01 billion), an increase of 6% (11% at constant currencies). IFRS operating margin was 21.3% (2012: 21.4%), a decrease of 0.1 percentage points. Non-IFRS operating margin was 27.4% (2012: 27.6%), a decrease of 0.2 percentage points. Non-IFRS operating margin was 28.0% at constant currencies, an increase of 0.4 percentage points.

IFRS profit after tax was €1.24 billion (2012: €1.10 billion), an increase of 13%. Non-IFRS profit after tax was €1.56 billion (2012: €1.41 billion), an increase of 11%. IFRS basic earnings per share was €1.04 (2012: €0.93), an increase of 12%. Non-IFRS basic earnings per share was €1.31 (2012: €1.19), an increase of 10%. The IFRS and non-IFRS effective tax rates were 21.5% (2012: 25.0%) and 24.5% (2012: 26.7%), respectively.

Operating cash flow was €2.48 billion (2012: €2.40 billion), an increase of 3%. Free cash flow was €2.22 billion (2012: €2.13 billion), an increase of 4%. Free cash flow was 29% of total revenue (2012: 29%). At June 30, 2013, SAP had a total group liquidity of €3.53 billion (December 31, 2012: €2.49 billion), which includes cash and cash equivalents and short term investments. Net liquidity at June 30, 2013 was –€1.49 billion compared to –€2.50 billion at December 31, 2012.

SAP Reports Second Quarter 2013 Results    Page 5

 

BUSINESS OUTLOOK

SAP reaffirms its full year 2013 non-IFRS operating profit outlook to be in a range of €5.85 billion – €5.95 billion at constant currencies (2012: €5.21 billion). Although the difficult macroeconomic environment in particular in Asia Pacific Japan and the rapid transition to the cloud have resulted in lower software revenue expectations, SAP remains committed to be a double-digit growth company with at least 10% growth in non-IFRS software and software-related service revenue at constant currencies in full year 2013 (2012: €13.25 billion). This replaces the previous growth outlook for non-IFRS software and software-related service revenue of 11% – 13% at constant currencies and the underlying guidance for software and cloud subscription revenue.

In addition, SAP reaffirms its outlook for the fast-growing innovation categories cloud and in-memory. The company continues to expect full year 2013 non-IFRS cloud subscription and support revenue of around €750 million at constant currencies (2012: €343 million) and full year 2013 SAP HANA software revenue in a range of €650 – €700 million (2012: €392 million).

The Company now projects a full-year 2013 IFRS effective tax rate of 24.0% – 25.0% (previously 25.5% – 26.5%) (2012: 26.2%) and a non-IFRS effective tax rate of 25.5% – 26.5% (previously 27.0% – 28.0%) (2012: 27.5%).

Additional Information

2013 revenue and profit figures include the revenue and profits from Ariba and SuccessFactors. The comparative numbers for 2012 do not include SuccessFactors until February 21, 2012 and Ariba 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.

# #

Second Quarter 2013 Interim Report

SAP’s second 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 Thursday, July 18th 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.

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 248,500 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.

SAP Reports Second Quarter 2013 Results    Page 6

 

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Appendix – Financial Information to Follow

LOGO

FINANCIAL INFORMATION

FOR THE SECOND QUARTER 2013

(Condensed and Unaudited)

 

     Page

Financial Statements (IFRS)

   

Income Statements – Quarter

    F1

Income Statements – Six Months

    F2

Statements of Financial Position

    F3-F4

Statements of Cash Flows

    F5

Supplementary Financial Information

   

Reconciliation from Non-IFRS Numbers to IFRS Numbers

    F6-F7

Non-IFRS Adjustments

    F8

Revenue by Region

    F9-F12

Financial Statements (IFRS)

CONSOLIDATED INCOME STATEMENTS

For the three months ended June 30

 

€ millions, unless otherwise stated

    Note   2013      2012      Change
in %		  

Software

        982         1,059         –7   

Cloud subscriptions and support

        159         52         206   

Software and cloud subscriptions

        1,141         1,110         3   

Support

        2,177         2,013         8   

Software and software-related service revenue

        3,318         3,124         6   

Consulting

        580         617         –6   

Other services

        165         157         5   

Professional services and other service revenue

        744         774         –4   

Total revenue

        4,062         3,898         4   

Cost of software and software-related services

        –598         –568         5   

Cost of professional services and other services

        –609         –644         –5   

Total cost of revenue

        –1,207         –1,212         0   

Gross profit

        2,855         2,686         6   

Research and development

        –567         –568         0   

Sales and marketing

        –1,059         –972         9   

General and administration

        –232         –222         5   

Restructuring

        –17         –4         <-100   

TomorrowNow litigation

        0         –2         <-100   

Other operating income/expense, net

        9         3         >100   

Total operating expenses

        –3,074         –2,977         3   

Operating profit

        988         921         7   

Other non-operating income/expense, net

        –2         –45         –95   

Finance income

        26         28         –6   

Finance costs

        –49         –39         27   

Financial income, net

        –23         –11         <-100   

Profit before tax

        963         865         11   

Income tax expense

    (6)     –239         –204         17   

Profit after tax

        724         661         10   

Profit attributable to non-controlling interests

        0         0         N/A   

Profit attributable to owners of parent

        725         661         10   

Earnings per share – basic (in €)*

    (7)     0.61         0.55         11   

Earnings per share – diluted (in €)*

    (7)     0.61         0.55         11   

 

* For the three months ended June 30, 2013 and 2012, the weighted average number of shares was 1,193 million (diluted 1,195 million) and 1,191 million (diluted: 1,192 million), respectively (treasury stock excluded).

 

 

F1

CONSOLIDATED INCOME STATEMENTS

For the six months ended June 30

 

€ millions, unless otherwise stated

    Note   2013      2012      Change
in %		  

Software

        1,638         1,696         –3   

Cloud subscriptions and support

        296         81         266   

Software and cloud subscriptions

        1,935         1,777         9   

Support

        4,286         3,966         8   

Software and software-related service revenue

        6,220         5,743         8   

Consulting

        1,136         1,214         –6   

Other services

        306         291         5   

Professional services and other service revenue

        1,443         1,505         –4   

Total revenue

        7,663         7,248         6   

Cost of software and software-related services

        –1,202         –1,106         9   

Cost of professional services and other services

        –1,215         –1,268         –4   

Total cost of revenue

        –2,416         –2,374         2   

Gross profit

        5,246         4,874         8   

Research and development

        –1,124         –1,091         3   

Sales and marketing

        –2,034         –1,802         13   

General and administration

        –429         –431         –1   

Restructuring

        –31         –4         <-100   

TomorrowNow litigation

        0         5         –92   

Other operating income/expense, net

        5         1         >100   

Total operating expenses

        –6,029         –5,696         6   

Operating profit

        1,634         1,551         5   

Other non-operating income/expense, net

        –13         –53         –76   

Finance income

        56         52         8   

Finance costs

        –93         –78         19   

Financial income, net

        –37         –26         41   

Profit before tax

        1,584         1,472         8   

Income tax expense

    (6)     –340         –368         –8   

Profit after tax

        1,244         1,104         13   

Profit attributable to non-controlling interests

        0         0         N/A   

Profit attributable to owners of parent

        1,245         1,104         13   

Earnings per share – basic (in €)*

    (7)     1.04         0.93         12   

Earnings per share – diluted (in €)*

    (7)     1.04         0.93         12   

 

* For the six months ended June 30, 2013 and 2012, the weighted average number of shares was 1,193 million (diluted 1,195 million) and 1,191 million (diluted: 1,191 million), respectively (treasury stock excluded).

Due to rounding, numbers may not add up precisely.

 

 

F2

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As at June 30, 2013, and December 31, 2012

 

€ millions

    Notes   2013      2012  

Cash and cash equivalents

        3,386         2,477   

Other financial assets

    (8)     296         154   

Trade and other receivables

    (9)     3,379         3,917   

Other non-financial assets

        408         294   

Tax assets

        308         156   

Total current assets

        7,776         6,998   

Goodwill

        13,333         13,227   

Intangible assets

        2,996         3,234   

Property, plant, and equipment

        1,751         1,708   

Other financial assets

    (8)     495         509   

Trade and other receivables

    (9)     92         88   

Other non-financial assets

        97         68   

Tax assets

        192         170   

Deferred tax assets

        761         708   

Total non-current assets

        19,717         19,711   

Total assets

        27,494         26,710   

 

 

F3

€ millions

    Notes   2013      2012  

Trade and other payables

        883         870   

Tax liabilities

        395         511   

Financial liabilities

    (10)     1,365         802   

Other non-financial liabilities

        1,404         2,136   

Provision TomorrowNow litigation

        235         234   

Other provisions

        390         609   

Provisions

        624         843   

Deferred income

    (11)     3,125         1,386   

Total current liabilities

        7,797         6,547   

Trade and other payables

        47         63   

Tax liabilities

        396         388   

Financial liabilities

    (10)     3,859         4,446   

Other non-financial liabilities

        107         98   

Provisions

        330         361   

Deferred tax liabilities

        518         574   

Deferred income

    (11)     62         62   

Total non-current liabilities

        5,319         5,991   

Total liabilities

        13,116         12,538   

Issued capital

        1,229         1,229   

Share premium

        521         492   

Retained earnings

        14,212         13,973   

Other components of equity

        –263         –194   

Treasury shares

        –1,330         –1,337   

Equity attributable to owners of parent

        14,369         14,163   

Non-controlling interests

        9         8   

Total equity

    (12)     14,378         14,171   

Equity and liabilities

        27,494         26,710   

 

 

F4

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the six months ended June 30

 

€ millions

    2013      2012  

Profit after tax

      1,244         1,104   

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

      

Depreciation and amortization

      478         402   

Income tax expense

      340         368   

Financial income, net

      37         26   

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

      38         26   

Other adjustments for non-cash items

      44         24   

Decrease/increase in trade and other receivables

      470         362   

Decrease/increase in other assets

      –129         –134   

Decrease/increase in trade payables, provisions, and other liabilities

      –945         –752   

Decrease/increase in deferred income

      1,735         1,629   

Cash outflows due to TomorrowNow litigation

      –1         –4   

Interest paid

      –80         –96   

Interest received

      33         47   

Income taxes paid, net of refunds

      –782         –602   

Net cash flows from operating activities

      2,482         2,400   

Business combinations, net of cash and cash equivalents acquired

      –99         –2,757   

Purchase of intangible assets and property, plant, and equipment

      –265         –275   

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

      23         22   

Purchase of equity or debt instruments of other entities

      –1,200         –558   

Proceeds from sales of equity or debt instruments of other entities

      1,079         941   

Net cash flows from investing activities

      –462         –2,627   

Dividends paid

      –1,013         –1,310   

Purchase of treasury shares

      0         –53   

Proceeds from reissuance of treasury shares

      9         69   

Proceeds from issuing shares (share-based payments)

      0         14   

Proceeds from borrowings

      0         1,002   

Repayments of borrowings

      0         –1,023   

Net cash flows from financing activities

      –1,004         –1,301   

Effect of foreign exchange rates on cash and cash equivalents

      –107         –61   

Net decrease/increase in cash and cash equivalents

      909         –1,589   

Cash and cash equivalents at the beginning of the period

      2,477         4,965   

Cash and cash equivalents at the end of the period

      3,386         3,376   

 

 

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 June 30  

€ 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

     982        0        982        41        1,022        1,059        0        1,059        –7        –7        –3   

Cloud subscriptions and support

     159        24        183        4        187        52        17        69        206        166        171   

Software and cloud subscriptions

     1,141        24        1,165        45        1,209        1,110        17        1,127        3        3        7   

Support

     2,177        5        2,182        62        2,245        2,013        1        2,014        8        8        11   

Software and software-related service revenue

     3,318        29        3,347        107        3,454        3,124        18        3,142        6        7        10   

Consulting

     580        0        580        16        595        617        0        617        –6        –6        –3   

Other services

     165        0        165        4        169        157        0        157        5        5        7   

Professional services and other service revenue

     744        0        744        19        764        774        0        774        –4        –4        –1   

Total revenue

     4,062        29        4,091        127        4,218        3,898        18        3,916        4        4        8   

Operating Expense Numbers

                      

Cost of software and software-related services

     –598        76        –522            –568        77        –491        5        6     

Cost of professional services and other services

     –609        23        –586            –644        34        –610        –5        –4     

Total cost of revenue

     –1,207        99        –1,108            –1,212        111        –1,101        0        1     

Gross profit

     2,855        129        2,984            2,686        129        2,815        6        6     

Research and development

     –567        17        –551            –568        45        –523        0        5     

Sales and marketing

     –1,059        44        –1,015            –972        56        –916        9        11     

General and administration

     –232        24        –208            –222        16        –206        5        1     

Restructuring

     –17        17        0            –4        4        0        <–100        N/A     

TomorrowNow litigation

     0        0        0            –2        2        0        <–100        N/A     

Other operating income/expense, net

     9        0        9            3        0        3        >100        >100     

Total operating expenses

     –3,074        201        –2,873        –54        –2,926        –2,977        234        –2,743        3        5        7   

Profit Numbers

                      

Operating profit

     988        230        1,219        73        1,292        921        252        1,173        7        4        10   

Other non-operating income/expense, net

     –2        0        –2            –45        0        –45        –95        –95     

Finance income

     26        0        26            28        0        28        –6        –6     

Finance costs

     –49        0        –49            –39        0        –39        27        27     

Financial income, net

     –23        0        –23            –11        0        –11        <–100        <–100     

Profit before tax

     963        230        1,194            865        252        1,117        11        7     

Income tax expense

     –239        –81        –320            –204        –82        –286        17        12     

Profit after tax

     724        149        874            661        170        831        10        5     

Profit attributable to non-controlling interests

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

Profit attributable to owners of parent

     725        149        874            661        170        831        10        5     

Key Ratios

                      

Operating margin in %

     24.3          29.8          30.6        23.6          30.0        0.7pp        –0.2pp        0.6pp   

Effective tax rate in %

     24.8          26.8            23.6          25.6        1.2pp        1.2pp     

Earnings per share – basic (in €)*

     0.61          0.73            0.55          0.70        11        4     

Deferred cloud subscriptions and support revenue (June 30)

     354        7        361            155        60        215        >100        68     

 

 

F6

    for the six months ended June 30  

€ 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

     1,638        0        1,638        52        1,690        1,696        0        1,696        –3        –3        0   

Cloud subscriptions and support

     296        54        350        6        356        81        23        104        266        238        243   

Software and cloud subscriptions

     1,935        54        1,989        57        2,046        1,777        23        1,799        9        11        14   

Support

     4,286        10        4,295        106        4,402        3,966        2        3,968        8        8        11   

Software and software-related service revenue

     6,220        64        6,284        163        6,448        5,743        25        5,768        8        9        12   

Consulting

     1,136        0        1,136        24        1,160        1,214        0        1,214        –6        –6        –4   

Other services

     306        0        306        6        313        291        0        291        5        5        7   

Professional services and other service revenue

     1,443        0        1,443        30        1,473        1,505        0        1,505        –4        –4        –2   

Total revenue

     7,663        64        7,727        194        7,921        7,248        25        7,273        6        6        9   

Operating Expense Numbers

                      

Cost of software and software-related services

     –1,202        173        –1,028            –1,106        149        –957        9        7     

Cost of professional services and other services

     –1,215        51        –1,164            –1,268        64        –1,204        –4        –3     

Total cost of revenue

     –2,416        224        –2,192            –2,374        213        –2,161        2        1     

Gross profit

     5,246        288        5,535            4,874        238        5,112        8        8     

Research and development

     –1,124        38        –1,086            –1,091        68        –1,023        3        6     

Sales and marketing

     –2,034        96        –1,939            –1,802        110        –1,692        13        15     

General and administration

     –429        33        –396            –431        40        –391        –1        1     

Restructuring

     –31        31        0            –4        4        0        <-100        N/A     

TomorrowNow litigation

     0        0        0            5        –5        0        –92        N/A     

Other operating income/expense, net

     5        0        5            1        0        1        >100        >100     

Total operating expenses

     –6,029        422        –5,607        –94        –5,701        –5,696        430        –5,266        6        6        8   

Profit Numbers

                      

Operating profit

     1,634        486        2,120        100        2,220        1,551        456        2,007        5        6        11   

Other non-operating income/expense, net

     –13        0        –13            –53        0        –53        –76        –76     

Finance income

     56        0        56            52        0        52        8        8     

Finance costs

     –93        0        –93            –78        1        –77        19        21     

Financial income, net

     –37        0        –37            –26        1        –25        41        48     

Profit before tax

     1,584        486        2,070            1,472        457        1,929        8        7     

Income tax expense

     –340        –167        –507            –368        –147        –515        –8        –2     

Profit after tax

     1,244        318        1,563            1,104        310        1,414        13        11     

Profit attributable to non-controlling interests

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

Profit attributable to owners of parent

     1,245        318        1,563            1,104        310        1,414        13        11     

Key Ratios

                      

Operating margin in %

     21.3          27.4          28.0        21.4          27.6        –0.1pp        –0.2pp        0.4pp   

Effective tax rate in %

     21.5          24.5            25.0          26.7        –3.5pp        –2.2pp     

Earnings per share – basic (in €)*

     1.04          1.31            0.93          1.19        12        10     

Deferred cloud subscriptions and support revenue (June 30)

     354        7        361            155        60        215        >100        68     

 

* 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

    04/01/ -
6/30/2013		      01/01/ -
6/30/2013		      04/01/ -
6/30/2012		      01/01/ -
6/30/2012		  

Software and software-related service revenue (IFRS)

      3,318         6,220         3,124         5,743   

Adjustment for deferred revenue write-down

      29         64         18         25   

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

      3,347         6,284         3,142         5,768   

Operating profit (IFRS)

      988         1,634         921         1,551   

Revenue Adjustments (per above)

      29         64         18         25   

Adjustment for discontinued activities

      0         0         2         –5   

Adjustment for acquisition-related charges

      145         283         130         250   

Adjustment for stock-based compensation expenses

      39         109         98         181   

Adjustment for restructuring

      17         31         4         4   

Operating expense adjustments

      201         422         234         430   

Operating profit adjustments

      230         486         252         456   

Operating profit (Non-IFRS)

      1,219         2,120         1,173         2,007   

Profit after tax (IFRS)

      724         1,244         661         1,104   

Revenue adjustments (per above)

      29         64         18         25   

Operating profit adjustments (per above)

      201         422         234         430   

Adjustments pre-tax

      230         486         252         457   

Taxes on adjustments

      –81         –167         –82         –147   

Profit after tax (Non-IFRS)

      874         1,563         831         1,414   

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. Details regarding the different views (based on location of contract negotiation respectively by customer location are described in the note “Segment and Geographic Information” of our Consolidated Financial Statements. 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.

 

Revenues by Region – Management View

  
    for the three months ended June 30  

€ 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

     417        0        417        7        424        419        0        419        –1        –1        1   

Americas

     391        0        391        21        412        435        0        435        –10        –10        –5   

APJ

     174        0        174        13        187        205        0        205        –15        –15        –9   

Software revenue

     982        0        982        41        1,022        1,059        0        1,059        –7        –7        –3   

Software revenue by location of negotiation and cloud subscription revenue by region

                      

EMEA

     441        0        441        7        448        437        0        437        1        1        3   

Americas

     518        24        542        24        566        465        17        482        11        13        18   

APJ

     181        0        181        14        195        209        0        209        –13        –13        –7   

Software revenue by location of negotiation and cloud subscription revenue

     1,141        24        1,165        45        1,209        1,110        17        1,127        3        3        7   

Revenues by Regions – Location of Customers

  
    for the three months ended June 30  

€ 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

     416        0        416        7        423        453        0        453        –8        –8        –7   

Americas

     391        0        391        20        411        395        0        395        –1        –1        4   

APJ

     175        0        175        14        189        210        0        210        –17        –17        –10   

Software revenue

     982        0        982        41        1,022        1,059        0        1,059        –7        –7        –3   

Cloud subscriptions and support revenue by region

                      

EMEA

     24        0        24        1        25        18        0        18        35        35        37   

Americas

     127        24        151        3        154        30        17        47        >100        >100        >100   

APJ

     8        0        8        0        8        4        0        4        97        97        103   

Cloud subscriptions and support revenue

     159        24        183        4        187        52        17        69        206        166        171   

Software and cloud subscription revenue by region

                      

EMEA

     440        0        440        7        447        471        0        471        –6        –6        –5   

Americas

     518        24        542        23        565        426        16        442        22        22        28   

APJ

     183        0        183        14        197        214        0        214        –15        –15        –8   

Software and cloud subscription revenue

     1,141        24        1,165        45        1,209        1,110        17        1,127        3        3        7   

 

 

F9

Software and software-related service revenue by region

                      

Germany

     455        0        455        0        455        436        0        436        4        4        4   

Rest of EMEA

     1,054        0        1,054        19        1,073        1,026        0        1,026        3        3        5   

Total EMEA

     1,509        0        1,509        20        1,529        1,462        0        1,462        3        3        5   

United States

     953        29        982        26        1,008        843        18        861        13        14        17   

Rest of Americas

     337        0        337        18        355        292        0        292        16        16        22   

Total Americas

     1,290        29        1,319        43        1,362        1,135        18        1,153        14        14        18   

Japan

     128        0        128        34        162        171        0        171        –25        –25        –6   

Rest of APJ

     390        0        390        11        401        356        0        356        10        10        13   

Total APJ

     519        0        519        44        563        527        0        527        –2        –2        7   

Software and software-related service revenue

     3,318        29        3,347        107        3,454        3,124        18        3,142        6        7        10   

Total revenue by region

                      

Germany

     591        0        591        0        591        575        0        575        3        3        3   

Rest of EMEA

     1,254        0        1,254        24        1,278        1,233        0        1,233        2        2        4   

Total EMEA

     1,845        0        1,845        24        1,869        1,808        0        1,808        2        2        3   

United States

     1,185        29        1,214        30        1,244        1,085        18        1,103        9        10        13   

Rest of Americas

     419        0        420        21        441        382        0        382        10        10        15   

Total Americas

     1,604        29        1,634        51        1,685        1,468        18        1,486        9        10        13   

Japan

     145        0        145        38        183        195        0        195        –25        –25        –6   

Rest of APJ

     467        0        467        14        481        427        0        427        9        9        13   

Total APJ

     612        0        612        52        664        622        0        622        –2        –2        7   

Total revenue

     4,062        29        4,091        127        4,218        3,898        18        3,916        4        4        8   

 

 

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Revenues by Region – Management View

  
    for the six months ended June 30  

€ 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

     715        0        715        11        726        694        0        694        3        3        4   

Americas

     645        0        645        24        669        674        0        674        –4        –4        –1   

APJ

     278        0        278        17        295        328        0        328        –15        –15        –10   

Software revenue

     1,638        0        1,638        52        1,690        1,696        0        1,696        –3        –3        0   

Software revenue by location of negotiation and cloud subscription revenue by region

                      

EMEA

     766        0        766        11        777        722        0        722        6        6        8   

Americas

     875        55        930        28        958        721        23        744        21        25        29   

APJ

     294        0        294        17        311        333        0        333        –12        –12        –7   

Software revenue by location of negotiation and cloud subscription revenue

     1,935        54        1,989        57        2,046        1,777        23        1,799        9        11        14   

Revenues by Regions – Location of Customers

  
    for the six months ended June 30  

€ 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

     716        0        716        11        727        731        0        731        –2        –2        –1   

Americas

     643        0        643        23        666        631        0        631        2        2        6   

APJ

     280        0        280        17        297        333        0        333        –16        –16        –11   

Software revenue

     1,638        0        1,638        52        1,690        1,696        0        1,696        –3        –3        0   

Cloud subscriptions and support revenue by region

                      

EMEA

     51        0        51        0        51        28        0        28        81        80        83   

Americas

     230        54        284        5        289        47        23        70        >100        >100        >100   

APJ

     15        0        15        1        16        5        0        5        >100        >100        >100   

Cloud subscriptions and support revenue

     296        54        350        6        356        81        23        104        266        238        243   

Software and cloud subscription revenue by region

                      

EMEA

     766        0        766        12        778        759        0        759        1        1        2   

Americas

     873        54        927        28        955        678        23        701        29        32        36   

APJ

     295        0        295        18        313        339        0        339        –13        –13        –8   

Software and cloud subscription revenue

     1,935        54        1,989        57        2,046        1,777        23        1,799        9        11        14   

 

 

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Software and software-related service revenue by region

                      

Germany

     854        0        854        0        854        807        0        807        6        6        6   

Rest of EMEA

     1,990        0        1,990        33        2,023        1,887        1        1,888        5        5        7   

Total EMEA

     2,844        0        2,844        33        2,877        2,694        1        2,695        6        6        7   

United States

     1,760        63        1,824        30        1,854        1,535        24        1,559        15        17        19   

Rest of Americas

     644        0        645        32        677        546        0        546        18        18        24   

Total Americas

     2,405        64        2,469        62        2,531        2,081        24        2,105        16        17        20   

Japan

     263        0        263        55        318        315        0        315        –17        –17        1   

Rest of APJ

     709        0        709        12        721        652        0        652        9        9        11   

Total APJ

     971        0        971        68        1,039        967        0        967        0        0        7   

Software and software-related service revenue

     6,220        64        6,284        163        6,448        5,743        25        5,768        8        9        12   

Total revenue by region

                      

Germany

     1,116        0        1,116        0        1,116        1,092        0        1,092        2        2        2   

Rest of EMEA

     2,385        0        2,385        40        2,425        2,291        1        2,292        4        4        6   

Total EMEA

     3,502        0        3,502        39        3,541        3,383        1        3,384        4        3        5   

United States

     2,209        63        2,272        36        2,308        1,998        24        2,022        11        12        14   

Rest of Americas

     796        0        797        39        836        715        0        715        11        11        17   

Total Americas

     3,005        64        3,069        75        3,144        2,714        24        2,738        11        12        15   

Japan

     296        0        296        63        359        360        0        360        –18        –18        0   

Rest of APJ

     860        0        860        16        876        791        0        791        9        9        11   

Total APJ

     1,156        0        1,156        79        1,235        1,151        0        1,151        0        0        7   

Total revenue

     7,663        64        7,727        194        7,921        7,248        25        7,273        6        6        9   

 

* 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.

 

 

F12