EX-99.1 2 d854663dex991.htm EXHIBIT 99.1 Exhibit 99.1

Exhibit 99.1

 

LOGO

For Immediate Release

January 20, 2015

SAP Announces Preliminary Fourth Quarter and Full Year 2014 Results

SAP Expedites Transition to Cloud – Targets 7x Growth in Cloud to Reach Up To €28 Billion Total Revenue By 2020

 

  •   Cloud Business Surges – Guidance Achieved as Non-IFRS Cloud Subscriptions and Support Revenue Jumped 72% in Fourth Quarter and Increased 45% in Full Year
  •   Cloud Subscriptions and Support Backlog Increased 94%, Exceeding €2.3 Billion at Year-End
  •   Strong HANA Momentum – More Than 5,800 HANA Customers and More Than 1,850 Suite on HANA Customers
  •   Software and Software-Related Service Revenue Guidance Achieved Despite the Accelerated Shift from Upfront to More Ratable Revenue
  •   Operating Profit Guidance Achieved While Significantly Expanding the Company’s Cloud Delivery Capabilities
  •   Targeting €7.5 – €8.0 Billion in Cloud Subscriptions and Support Revenue and €26 – €28 Billion Total Revenue by 2020

WALLDORF, Germany – January 20, 2015 – SAP SE (NYSE: SAP) today announced its financial results for the fourth quarter and twelve months ended December 31, 2014.

BUSINESS HIGHLIGHTS IN THE FOURTH QUARTER AND FULL YEAR 2014

SAP delivered exceptionally strong growth in the cloud and continues to lead in this industry-wide transformation. Full year non-IFRS cloud subscriptions and support revenue increased 45% at actual and constant currencies to €1.10 billion1.

The company also showed a solid software and software-related service revenue performance despite the accelerated shift from upfront software revenue to more subscription-based cloud revenue. Non-IFRS software and software-related service revenue grew 7% at constant currencies (6% at actual currencies to €14.87 billion) achieving the full year target of 6% – 8% growth at constant currencies. Non-IFRS operating profit increased by 3% at constant currencies to €5.63 billion (3% at actual currencies to €5.64 billion), achieving the full year outlook of €5.6 – €5.8 billion at constant currencies.

 

“In 2014 we delivered on our Run Simple strategy to help our customers transform their businesses. SAP’s strong growth is driven by the HANA platform, the broadest cloud portfolio and the largest business network in the world,” said Bill McDermott, CEO of SAP. “SAP powers the clear path to growth

 

 

 

 

1 For the full year 2014, Fieldglass contributed €50 million and Concur contributed €45 million to SAP’s Non-IFRS cloud subscriptions and support revenue at constant currencies, representing a 13 percentage point contribution to SAP’s respective full year 2014 growth rate.

SAP Reports Fourth Quarter and Twelve Months 2014 Results    Page 2                     

 

for businesses in the 21st century: run real-time, run networked, run simple. We will continue to push relentlessly toward a much more predictable business model and are once again raising our cloud ambition to grow 7X from 2014 through 2020.”

“We had exceptional growth in our cloud business and have significantly lifted the total of cloud backlog and non-IFRS deferred cloud revenue to more than €3 billion. This is committed business that will drive strong cloud growth in the future,” said Luka Mucic, CFO of SAP. “We expect cloud subscriptions to exceed software license revenue in 2018. At that time SAP expects to reach a scale in its cloud business that will clear the way for accelerated operating profit expansion.”

SAP is the fastest growing enterprise cloud company at scale2 with fourth quarter non-IFRS cloud subscriptions and support revenue increasing 72% year-over-year (59% at constant currencies). The annual total cloud revenue run rate now exceeds €1.7 billion3 or $2.0 billion4. Non-IFRS calculated cloud billings increased 104% (78% at constant currencies) in the fourth quarter5. Non-IFRS deferred cloud subscriptions and support revenue was €699 million as of December 31, 2014, a year-over-year increase of 56% (40% at constant currencies)6. The Company’s cloud subscriptions and support backlog7 as of December 31, 2014 was €2.3 billion, a year-over-year increase of 94%.

SAP’s acquisition of Concur in December 2014 propels the world’s largest business network into the $1.2 trillion corporate travel and expense market. More than 1.7 million connected companies trade over $700 billion of frictionless commerce8 on this network – more than Amazon, eBay and Alibaba all combined.

SAP’s intense focus on next-generation customer engagement is also fueling growth. Its hybris omni-channel e-commerce platform, combined with Cloud for Sales, once again saw strong revenue contribution in 2014 with triple-digit growth in software revenue and cloud subscriptions and support revenue combined.

SAP HANA, the platform for real-time business applications, had a phenomenal year and continues to be a major growth engine for SAP. The Company saw continued broad market adoption of SAP HANA across all industries and regions as customers recognize the compelling business benefits of SAP HANA. SAP now has more than 5,800 HANA customers and more than 1,850 customers for SAP Business Suite on HANA. SAP HANA is also evolving into a leading development platform.

In its services business, SAP is radically simplifing the way it engages with customers and delivers services to its customers: Under the new ONE Service approach, SAP provides one service portfolio, out of one global organization and under one contract. To execute on ONE Service SAP has combined all lines of services under one organizational umbrella.

 

 

 

 

2 Compared to SAP’s peer group companies with an enterprise software annual cloud revenue run rate above €1 billion.

3 The annual revenue run rate is the fourth quarter 2014 non-IFRS cloud subscriptions and support revenue (€360 million) plus non-IFRS cloud-related professional services and other service revenue (€69 million) multiplied by 4.

4 Translated into USD for reader’s convenience based on $/€ exchange rate of $1.21/€1.00 at the end of the fourth quarter 2014.

5 The calculated billings numbers and respective growth rates reported herein update the preliminary numbers reported in the pre-release from January 12th.

6 Calculated billings is the total of a period’s cloud subscriptions and support revenue and of the respective period’s change in the deferred cloud subscriptions and support revenue balance. In the fourth quarter 2014 Fieldglass contributed €19 million and Concur contributed €45 million to SAP’s Non-IFRS cloud subscriptions and support revenue at constant currencies. The contribution from Concur to non-IFRS deferred cloud subscriptions and support revenue at December 31st, 2014 was €65 million at constant currencies and €71 million at actual currencies (IFRS: €62 million). At December 4th, 2014, the closing of Concur, the balance was €61 million at actual currencies (IFRS: € 42 million).

7 Cloud subscriptions and support backlog represents expected future cloud subscriptions and support revenue that is contracted but not yet invoiced and thus not recorded in deferred revenue.

8 Network spend volume is the total value of purchase orders transacted on the Ariba, Concur and Fieldglass Networks in the trailing 12 months.

SAP Reports Fourth Quarter and Twelve Months 2014 Results    Page 3                     

 

Fourth Quarter 2014 Regional Revenue

SAP had another solid performance in EMEA, despite the macroeconomic conditions weighing on the business in Russia and Ukraine. Non-IFRS software and software-related service revenue increased 5% (5% at constant currencies) with a strong software revenue performance in the UK. Non-IFRS cloud subscriptions and support revenue in EMEA grew 85% (75% at constant currencies).

In the Americas, non-IFRS software and software-related service revenue increased 14% (6% at constant currencies), driven by strong growth in the United States. In Latin America, SAP continued to face a difficult macroeconomic and political environment. Non-IFRS cloud subscriptions and support revenue in the Americas increased 63% (50% at constant currencies).

In APJ, the Company achieved exceptional revenue growth in cloud and an overall solid revenue performance. Non-IFRS software and software-related service revenue grew 6% (2% at constant currencies). India delivered strong double-digit software revenue growth. Non-IFRS cloud subscriptions and support revenue grew 98% (87% at constant currencies) in APJ.

SAP Reports Fourth Quarter and Twelve Months 2014 Results    Page 4                     

 

FINANCIAL RESULTS IN DETAIL

FINANCIAL HIGHLIGHTS – Fourth Quarter 2014

 

    

 

Fourth Quarter 20141)

 

     IFRS            

Non-

IFRS2)

               
€ million, unless otherwise stated   Q4 2014   Q4 2013   %
  change		   Q4 2014   Q4 2013   %
  change		   % change
  const. curr.
                                     
Cloud subscriptions and support   349   208   68   360   210   72   59

Software

   1,867   1,902   –2   1,867   1,903   –2   –5

Support

   2,506   2,268   11   2,507   2,272   10   8
Software and support   4,373   4,170   5   4,374   4,175   5   2
Software and software-related service revenue   4,722   4,378   8   4,734   4,385   8   5
Total revenue   5,458   5,106   7   5,469   5,113   7   4
Total operating expenses   –3,704   –3,305   12   –3,342   –3,015   11   8
Operating profit   1,754   1,802   –3   2,127   2,098   1   –2
Operating margin (%)   32.1   35.3   –3.2pp   38.9   41.0   –2.1pp   –2.3pp
Profit after tax   1,304   1,319   –1   1,564   1,522   3    
Basic earnings per share (€)   1.09   1.11   –1   1.31   1.28   3    
Number of employees (FTE)   74,406   66,572   12   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 cloud subscriptions and support revenue was €349 million (2013: €208 million), an increase of 68%. Non-IFRS cloud subscriptions and support revenue was €360 million (2013: €210 million), an increase of 72% (59% at constant currencies). IFRS software and support revenue was €4.37 billion (2013: €4.17 billion), an increase of 5%. Non-IFRS software and support revenue was €4.37 billion (2013: €4.18 billion), an increase of 5% (2% at constant currencies). IFRS software and software-related service revenue was €4.72 billion (2013: €4.38 billion), an increase of 8%. Non-IFRS software and software-related service revenue was €4.73 billion (2013: €4.39 billion), an increase of 8% (5% at constant currencies). IFRS total revenue was €5.46 billion (2013: €5.11 billion), an increase of 7%. Non-IFRS total revenue was €5.47 billion (2013: €5.11 billion), an increase of 7% (4% at constant currencies).

IFRS operating profit was €1.75 billion (2013: €1.80 billion), a decrease of 3%. Non-IFRS operating profit was €2.13 billion (2013: €2.10 billion), an increase of 1% (a decrease of 2% at constant currencies). IFRS operating margin was 32.1% (2013: 35.3%), a decrease of 3.2 percentage points. Non-IFRS operating margin was 38.9% (2013: 41.0%), a decrease of 2.1 percentage points (2.3 percentage points at constant currencies).

IFRS profit after tax was €1.30 billion (2013: €1.32 billion), a decrease of 1%. Non-IFRS profit after tax was €1.56 billion (2013: €1.52 billion), an increase of 3%. IFRS basic earnings per share was €1.09 (2013: €1.11), a decrease of 1%. Non-IFRS basic earnings per share was €1.31 (2013: €1.28), an increase of 3%. The IFRS and non-IFRS effective tax rates in the fourth quarter of 2014 were 24.8% (2013: 25.7%) and 25.8% (2013: 26.6%), respectively.

SAP Reports Fourth Quarter and Twelve Months 2014 Results    Page 5                     

 

FINANCIAL HIGHLIGHTS – Full Year 2014

 

    

 

Full Year 20141)

 

   

IFRS

 

   Non-IFRS2)
                                     
€ million, unless otherwise stated   FY 2014    FY 2013    %
  change 		   FY 2014    FY 2013    %
  change 		  

% change

  const. curr. 

                             
                             
Cloud subscriptions and support   1,087   696   56   1,101   757   45   45

Software

   4,399   4,516   –3   4,399   4,518   –3   –3

Support

   9,368   8,738   7   9,373   8,756   7   8
Software and support   13,767   13,254   4   13,773   13,275   4   5
Software and software-related service revenue   14,855   13,950   6   14,874   14,032   6   7
Total revenue   17,560   16,815   4   17,580   16,897   4   5
Total operating expenses   –13,229   –12,336   7   –11,942   –11,415   5   6
Operating profit   4,331   4,479   –3   5,638   5,482   3   3
Operating margin (%)   24.7   26.6   –2.0pp   32.1   32.4   –0.4pp   –0.7pp
Profit after tax   3,275   3,325   –1   4,178   3,998   4    
Basic earnings per share (€)   2.74   2.79   –2   3.50   3.35   4    
Number of employees (FTE)   74,406   66,572   12   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 cloud subscriptions and support revenue was €1.09 billion (2013: €696 million), an increase of 56%. Non-IFRS cloud subscriptions and support revenue was €1.10 billion (2013: €757 million), an increase of 45% (45% at constant currencies). IFRS software and support revenue was €13.77 billion (2013: €13.25 billion), an increase of 4%. Non-IFRS software and support revenue was €13.77 billion (2013: €13.28 billion), an increase of 4% (5% at constant currencies). IFRS software and software-related service revenue was €14.86 billion (2013: €13.95 billion), an increase of 6%. Non-IFRS software and software-related service revenue was €14.87 billion (2013: €14.03 billion), an increase of 6% (7% at constant currencies). IFRS total revenue was €17.56 billion (2013: €16.82 billion), an increase of 4%. Non-IFRS total revenue was €17.58 billion (2013: €16.90 billion), an increase of 4% (5% at constant currencies).

IFRS operating profit was €4.33 billion (2013: €4.48 billion), a decrease of 3%. Non-IFRS operating profit was €5.64 billion (2013: €5.48 billion), an increase of 3% (3% at constant currencies). IFRS operating margin was 24.7% (2013: 26.6%), a decrease of 2.0 percentage points. Non-IFRS operating margin was 32.1% (2013: 32.4%), a decrease of 0.4 (0.7 percentage points at constant currencies).

IFRS profit after tax was €3.28 billion (2013: €3.33 billion), a decrease of 1%. Non-IFRS profit after tax was €4.18 billion (2013: €4.00 billion), an increase of 4%. IFRS basic earnings per share was €2.74 (2013: €2.79), a decrease of 2%. Non-IFRS basic earnings per share was €3.50 (2013: €3.35), an increase of 4%. The IFRS and non-IFRS effective tax rates in 2014 were 24.8% (2013: 24.4%) and 26.2% (2013: 25.9%), respectively.

Cash Flow – Twelve Months 2014

Operating cash flow was €3.57 billion (2013: €3.83 billion), a decrease of 7% year-over-year. This was mainly due to payouts for litigation in the amount of €555 million. Free cash flow was €2.84 billion (2013: €3.27 billion), a decrease of 13% year-over-year. Free cash flow was 16% of total revenue (2013: 19%). At December 31, 2014, SAP had a total group liquidity of €3.42 billion (December 31, 2013: €2.84 billion), which includes cash and cash equivalents and short term investments. Net debt at December 31,

SAP Reports Fourth Quarter and Twelve Months 2014 Results    Page 6                     

 

2014 was -€7.67 billion compared to -€1.47 billion at December 31, 2013.

ONE Service and Impact on SAP’s Financial Reporting

As outlined above, SAP is implementing the ONE Service approach to provide holistic service offerings to its customers. This combination of services will be reflected in SAP’s financial reporting by combining the respective revenue in one revenue line item of the income statement. Therefore, SAP will amend the structure of its income statement, starting with the first quarter of 2015 by presenting one revenue line item called ‘Services’ which includes premium support services, professional services and other services. Revenue from Enterprise Support and other standardised support offerings will continue to be reported in the ‘Software support’ line. The formerly presented subtotal ‘Software and software-related services’ (SSRS) which still included premium support revenue is replaced by the subtotal ‘Cloud & software’ which excludes premium support services.

This income statement modification does neither change total revenue nor the reported cloud subscriptions & support revenue and software revenue. The outlook the Company provides below for 2015 and beyond is based on this modified income statement format. For more information refer to the Company’s webinar at www.sap.com/investor.

BUSINESS OUTLOOK 2015

The Company is providing the following 2015 outlook:

 

  •   Based on the strong momentum in SAP’s cloud business the Company expects full year 2015 non-IFRS cloud subscriptions and support revenue to be in a range of €1.95 – €2.05 billion at constant currencies (2014: €1.10 billion). The upper end of this range represents a growth rate of 86% at constant currencies. Concur and Fieldglass are expected to contribute approximately 50 percentage points to this growth.
  •   The Company expects full year 2015 non-IFRS cloud & software revenue to increase by 8% – 10% at constant currencies (2014: €14.33 billion).
  •   The Company expects full-year 2015 non-IFRS operating profit to be in a range of €5.6 billion – €5.9 billion at constant currencies (2014: €5.64 billion).

This 2015 outlook replaces the previously communicated 2015 mid-term ambition.

While the Company’s full-year 2015 business outlook is at constant currencies, actual currency reported figures are expected to continue to be impacted by currency exchange rate fluctuations. If exchange rates remain at the December 2014 closing rates for the rest of the year, the Company expects non-IFRS cloud & software revenue growth rate to experience a currency benefit of approximately 2 percentage points and non-IFRS operating profit growth rate at actual currencies to experience a currency benefit of approximately 1 percentage points for the full year 2015.

MID-TERM OUTLOOK

SAP expects to grow its more predictable revenue business while steadily increasing operating profit.

Looking beyond 2015, SAP is updating its 2017 ambition. SAP continues to expect fast growth in its cloud business with non-IFRS cloud subscriptions and support revenue reaching a range of €3.5 – €3.6 billion in 2017. Non-IFRS total revenue is expected to reach €21 – €22 billion in 2017. The Company expects non-IFRS operating profit in a range of €6.3 – €7.0 billion in 2017.

The changes to the 2017 goals reflect the impact from the Concur acquisition and anticipated faster customer adoption of SAP’s private cloud offering. SAP also anticipates the fast-growing cloud business along with growth in support revenue will drive a higher share of more predictable revenue with the total of cloud subscriptions & support revenue and software support revenue reaching a range of 65% – 70% of total revenue in 2017.

SAP Reports Fourth Quarter and Twelve Months 2014 Results    Page 7                     

 

By 2017 SAP’s rapidly growing cloud subscriptions and support revenue is expected to be close to software license revenue and is expected to exceed software license revenue in 2018. At that time SAP expects to reach a scale in its cloud business that will clear the way for accelerated operating profit expansion.

SAP is also introducing high level 2020 ambitions with 2020 non-IFRS cloud subscriptions and support revenue expected to reach €7.5 – €8.0 billion. Total revenue is expected to be in a range of €26 – €28 billion and non-IFRS operating profit in a range of €8 – €9 billion. The share of more predictable revenue is expected to grow further with the total of cloud subscriptions & support revenue and software support revenue reaching a range of 70% – 75% of total revenue in 2020.

SAP Reports Fourth Quarter and Twelve Months 2014 Results    Page 8                     

 

Additional Information

2014 revenue and profit figures include the full revenue and profit from hybris and the revenue and profit from Concur and Fieldglass since their acquisition dates of December 4 and May 2, respectively. The comparative numbers for 2013 do not include Concur or Fieldglass and hybris was included from August 1, 2013.

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.

# #

2014 Integrated Report and Annual Report

SAP’s 2014 Integrated Report and Annual Report to Shareholders and 2014 Annual Report on Form 20-F are scheduled to be published on March 20, 2015, and will be available for download at www.sap.com/investor.

Webcast

SAP senior management will host a press conference in Walldorf today at 10:00 AM (CET) /

9:00 AM (GMT) / 4:00 AM (Eastern) / 1:00 AM (Pacific), followed by an investor conference at 2:00 PM (CET) / 1:00 PM (GMT) / 8:00 AM (Eastern) / 5:00 AM (Pacific). Both conferences will be web cast live on the Company’s website at www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the full-year and quarterly results can be found at www.sap.com/investor.

SAP will also be hosting a Capital Markets Day and live webcast in New York on Tuesday, February 3, 2015.

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 282,000 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.

© 2015 SAP SE. 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 SE. The information contained herein may be changed without prior notice.

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

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

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

SAP Reports Fourth Quarter and Twelve Months 2014 Results    Page 9                     

 

Note to editors:

To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels. To view video stories on diverse topics, visit www.sap-tv.com. From this site, you can embed videos into your own Web pages, share video via e-mail links and subscribe to RSS feeds from SAP TV.

For customers interested in learning more about SAP products:

Global Customer Center:      +49 180 534-34-24
United States Only:      1 (800) 872-1SAP (1-800-872-1727)

For more information, financial community only:

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

For more information, press only:

Nicola Leske      +49 (6227) 7-50852    nicola.leske@sap.com, CET
Daniel Reinhardt      +49 (6227) 7-40201    daniel.reinhardt@sap.com, CET
Andy Kendzie      +1 (202) 312-3919    andy.kendzie@sap.com, ET

Follow SAP Investor Relations on Twitter at @sapinvestor.

Appendix – Financial Information

LOGO

 

 

 

 

FINANCIAL INFORMATION

FOR THE FOURTH QUARTER 2014

(Condensed and Unaudited)

 

     Page

Financial Statements (IFRS, Unaudited)

   

Consolidated Income Statements

    F1-F2

Consolidated Statements of Financial Position

    F3

Consolidated Statements of Cash Flows

    F4

Supplementary Financial Information (Unaudited)

   

Reconciliation from Non-IFRS Numbers to IFRS Numbers

    F5-F8

Explanation of Non-IFRS Adjustments

    F8

Calculated Cloud Billings

    F9

Revenue by Region

    F10-F11

Multi-Quarter Summary

    F12-F13

Financial Statements (IFRS, Unaudited)

CONSOLIDATED INCOME STATEMENTS OF SAP GROUP – QUARTER

For the three months ended December 31

 

€ millions, unless otherwise stated                2014           2013     

Change

in %

  

Cloud subscriptions and support

                349             208         68   

Software

                1,867             1,902         –2   

Support

                2,506             2,268         11   

Software and support

                4,373             4,170         5   

Software and software-related service revenue

                4,722             4,378         8   

Professional services and other service revenue

                735             728         1   

Total revenue

                5,458             5,106         7   
                                          

Cost of software and software-related services

                –852             –759         12   

Cost of professional services and other services

                –611             –582         5   

Total cost of revenue

                –1,463             –1,341         9   

Gross profit

                3,995             3,765         6   

Research and development

                –670             –606         11   

Sales and marketing

                –1,269             –1,111         14   

General and administration

                –279             –230         21   

Restructuring

                –29             –23         27   

TomorrowNow and Versata litigation

                –2             –1         >100   

Other operating income/expense, net

                8             7         21   

Total operating expenses

                        –3,704             –3,305         12   

Operating profit

                1,754             1,802         –3   
                                          

Other non-operating income/expense, net

                5             –3         <-100   

Finance income

                28             20         40   

Finance costs

                –52             –43         22   

Financial income, net

                –24             –22         7   

Profit before tax

                1,734             1,776         –2   

Income tax TomorrowNow and Versata litigation

                1             0         >100   

Other income tax expense

                –431             –458         –6   

Income tax expense

                –430             –457         –6   

Profit after tax

                1,304             1,319         –1   

attributable to owners of parent

                1,304             1,319         –1   

attributable to non-controlling interests

                0             –1         <-100   
                                          

Earnings per share, basic (in €)*

                1.09             1.11         –1   

Earnings per share, diluted (in €)*

                1.09             1.10         –1   

* For the three months ended December 31, 2014 and 2013, the weighted average number of shares was 1,195 million (diluted 1,198 million) and 1,194 million (diluted: 1,196 million), respectively (treasury stock excluded).

Due to rounding, numbers may not add up precisely.

 

 

F1

CONSOLIDATED INCOME STATEMENTS OF SAP GROUP – TWELVE MONTHS

For the twelve months ended December 31

 

€ millions, unless otherwise stated                2014           2013     

Change

in %

  

Cloud subscriptions and support

                1,087             696         56   

Software

                4,399             4,516         –3   

Support

                9,368             8,738         7   

Software and support

                13,767             13,254         4   

Software and software-related service revenue

                14,855             13,950         6   

Professional services and other service revenue

                2,706             2,865         –6   

Total revenue

                17,560             16,815         4   
                                          

Cost of software and software-related services

                –2,894             –2,629         10   

Cost of professional services and other services

                –2,379             –2,402         –1   

Total cost of revenue

                –5,272             –5,031         5   

Gross profit

                        12,288             11,784         4   

Research and development

                –2,331             –2,282         2   

Sales and marketing

                –4,304             –4,131         4   

General and administration

                –891             –866         3   

Restructuring

                –126             –70         80   

TomorrowNow and Versata litigation

                –309             31         <-100   

Other operating income/expense, net

                4             12         –64   

Total operating expenses

                –13,229             –12,336         7   

Operating profit

                4,331             4,479         –3   
                                          

Other non-operating income/expense, net

                49             –17         <-100   

Finance income

                127             115         11   

Finance costs

                –152             –181         –16   

Financial income, net

                –25             –66         –63   

Profit before tax

                4,356             4,396         –1   

Income tax TomorrowNow and Versata litigation

                86             –8         <-100   

Other income tax expense

                –1,166             –1,063         10   

Income tax expense

                –1,080             –1,071         1   

Profit after tax

                3,275             3,325         –1   

attributable to owners of parent

                3,275             3,326         –2   

attributable to non-controlling interests

                0             –1         <-100   
                                          

Earnings per share, basic (in €)*

                2.74             2.79         –2   

Earnings per share, diluted (in €)*

                2.74             2.78         –2   

* For the twelve months ended December 31, 2014 and 2013, the weighted average number of shares was 1,195 million (diluted 1,197 million) and 1,193 million (diluted: 1,195 million), respectively (treasury stock excluded).

Due to rounding, numbers may not add up precisely.

 

 

F2

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION OF SAP GROUP

as at December 31, 2014 and December 31, 2013

 

€ millions                    2014           2013  

Cash and cash equivalents

             3,348           2,748   

Other financial assets

                   658             251   

Trade and other receivables

             4,330           3,864   

Other non-financial assets

                   433             346   

Tax assets

             173           142   

Total current assets

                   8,942             7,351   

Goodwill

             20,831           13,690   

Intangible assets

                   4,608             2,954   

Property, plant, and equipment

             2,102           1,820   

Other financial assets

                   1,020             607   

Trade and other receivables

             100           98   

Other non-financial assets

                   164             107   

Tax assets

             229           172   

Deferred tax assets

                   378             292   

Total non-current assets

             29,432           19,739   

Total assets

                   38,374             27,091   

 

as at December 31, 2014 and December 31, 2013        
€ millions                     2014           2013  

Trade and other payables

                    1,006             850   

Tax liabilities

                    333             433   

Financial liabilities

                    3,801             748   

Other non-financial liabilities

                    2,797             2,562   

Provision TomorrowNow and Versata litigation

                    1             223   

Other provisions

                    149             123   

Provisions

                    150             346   

Deferred income

                    1,681             1,408   

Total current liabilities

                    9,767             6,347   

Trade and other payables

                    55             45   

Tax liabilities

                    373             319   

Financial liabilities

                    7,741             3,758   

Other non-financial liabilities

                    231             257   

Provisions

                    149             132   

Deferred tax liabilities

                    386             110   

Deferred income

                    78             74   

Total non-current liabilities

                    9,013             4,695   

Total liabilities

                    18,780             11,043   

Issued capital

                    1,229             1,229   

Share premium

                    614             551   

Retained earnings

                    18,311             16,258   

Other components of equity

                    570             –718   

Treasury shares

                    –1,224             –1,280   

Equity attributable to owners of parent

                    19,500             16,040   

Non-controlling interests

                    94             8   

Total equity

                    19,594             16,048   

Total equity and liabilities

                    38,374             27,091   

Due to rounding, numbers may not add up precisely.

 

 

F3

CONSOLIDATED STATEMENTS OF CASH FLOWS OF SAP GROUP

For the twelve months ended December 31

 

€ millions      2014        2013  

Profit after tax

        3,275           3,325   

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

                      

Depreciation and amortization

        1,010           951   

Income tax expense

        1,080           1,071   

Financial income, net

        25           66   

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

        47           42   

Other adjustments for non-cash items

        85           57   

Decrease/increase in trade and other receivables

        –286           –110   

Decrease/increase in other assets

        –344           –131   

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

        648           –176   

Decrease/increase in deferred income

        16           125   

Cash outflows due to TomorrowNow and Versata litigation

        –555           –1   

Interest paid

        –130           –159   

Interest received

        59           67   

Income taxes paid, net of refunds

        –1,356           –1,295   

Net cash flows from operating activities

        3,574           3,832   
                       

Business combinations, net of cash and cash equivalents acquired

        –6,354           –1,160   

Cash payments for derivative financial instruments related to business combinations

        –111           0   

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

        –6,465           –1,160   

Purchase of intangible assets and property, plant, and equipment

        –737           –566   

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

        46           55   

Purchase of equity or debt instruments of other entities

        –891           –1,531   

Proceeds from sales of equity or debt instruments of other entities

        833           1,421   

Net cash flows from investing activities

        –7,214           –1,781   

Dividends paid

        –1,194           –1,013   

Proceeds from reissuance of treasury shares

        51           49   

Proceeds from borrowings

        7,581           1,000   

Repayments of borrowings

        –2,219           –1,625   

Net cash flows from financing activities

        4,219           –1,589   
                       

Effect of foreign currency rates on cash and cash equivalents

        21           –191   

Net decrease/increase in cash and cash equivalents

        600           271   

Cash and cash equivalents at the beginning of the period

        2,748           2,477   

Cash and cash equivalents at the end of the period

        3,348           2,748   

Due to rounding, numbers may not add up precisely.

 

 

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 December 31  
€ millions, unless otherwise stated   2014     2013         
     IFRS     Adj.*     Non-IFRS*    

Currency

Impact**

    

Non-IFRS

Constant

Currency**

     IFRS     Adj.*     Non-IFRS*     IFRS     Non-IFRS*    

Non-IFRS

Constant

Currency**

  

Revenue Numbers

                                                                                        

Cloud subscriptions and support

     349        10        360        –26        334        208        1        210        68        72        59   

Software

     1,867        0        1,867        –59        1,808        1,902        0        1,903        –2        –2        –5   

Support

     2,506        1        2,507        –64        2,444        2,268        5        2,272        11        10        8   

Software and support

     4,373        1        4,374        –123        4,251        4,170        5        4,175        5        5        2   

Software and software-related service revenue

     4,722        12        4,734        –149        4,586        4,378        6        4,385        8        8        5   

Professional services and other service revenue

     735        0        735        –24        712        728        0        728        1        1        –2   

thereof cloud-related

     69        0        69        –3        66        45        0        45        54        54        47   

Total revenue

     5,458        12        5,469        –172        5,297        5,106        6        5,113        7        7        4   
                                                                                         

Cloud subscriptions and support

     349        10        360        –26        334        208        1        210        68        72        59   

Cloud-related professional services revenue

     69        0        69        –3        66        45        0        45        54        54        47   

Cloud revenue

     418        10        429        –29        400        253        1        254        65        69        57   
                                                                                         

Operating Expense Numbers

                                                                                        

Cost of software and software-related services

     –852        105        –747                        –759        98        –661        12        13           

thereof cloud

     –161        30        –131                        –83        18        –66        93        99           

Cost of professional services and other services

     –611        47        –564                        –582        38        –543        5        4           

Total cost of revenue

     –1,463        152        –1,311                        –1,341        137        –1,204        9        9           

Gross profit

     3,995        164        4,158                        3,765        143        3,909        6        6           

Research and development

     –670        55        –615                        –606        51        –555        11        11           

Sales and marketing

     –1,269        69        –1,201                        –1,111        63        –1,047        14        15           

General and administration

     –279        55        –224                        –230        15        –215        21        4           

Restructuring

     –29        29        0                        –23        23        0        27        0           

TomorrowNow and Versata litigation

     –2        2        0                        –1        1        0        >100        0           

Other operating income/expense, net

     8        0        8                        7        0        7        21        21           

Total operating expenses

     –3,704        362        –3,342        98        –3,244        –3,305        290        –3,015        12        11        8   

 

 

F5

     For the three months ended December 31  
€ millions, unless otherwise stated   2014     2013     Change in %  
     IFRS     Adj.*     Non-IFRS*    

Currency

Impact**

    

Non-IFRS

Constant

Currency**

     IFRS     Adj.*     Non-IFRS*     IFRS     Non-IFRS*    

Non-IFRS

Constant

Currency**

  

Profit Numbers

                                                                                        

Operating profit

     1,754        374        2,127        –74        2,053        1,802        296        2,098        –3        1        –2   
Other non-operating income/expense, net     5        0        5                        –3        0        –3        <-100        <-100           

Finance income

     28        0        28                        20        0        20        40        40           

Finance costs

     –52        0        –52                        –43        0        –43        22        22           

Financial income, net

     –24        0        –24                        –22        0        –22        7        7           

Profit before tax

     1,734        374        2,108                        1,776        296        2,072        –2        2           

Income tax TomorrowNow and Versata litigation

     1        –1        0                        0        0        0        >100        0           

Other income tax expense

     –431        –113        –544                        –458        –93        –550        –6        –1           

Income tax expense

     –430        –114        –544                        –457        –93        –550        –6        –1           

Profit after tax

     1,304        260        1,564                        1,319        203        1,522        –1        3           

attributable to owners of parent

     1,304        260        1,564                        1,319        203        1,523        –1        3           

attributable to non-controlling interests

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

Key Ratios

                                                                                        
Operating margin (in %)     32.1                38.9                38.8        35.3                41.0        –3.2pp        –2.1pp        –2.3pp   
Effective tax rate (in %)     24.8                25.8                        25.7                26.6        –1.0pp        –0.8pp           
Earnings per share, basic (in €)     1.09                1.31                        1.11                1.28        –1        3           

 

 

F6

     For the twelve months ended December 31  
€ millions, unless otherwise stated   2014     2013         
     IFRS     Adj.*     Non-IFRS*    

Currency

Impact**

    

Non-IFRS

Constant

Currency**

     IFRS     Adj.*     Non-IFRS*     IFRS     Non-IFRS*    

Non-IFRS

Constant

Currency**

  

Revenue Numbers

                                                                                        

Cloud subscriptions and support

     1,087        14        1,101        –3        1,098        696        61        757        56        45        45   

Software

     4,399        0        4,399        0        4,399        4,516        2        4,518        –3        –3        –3   

Support

     9,368        5        9,373        114        9,487        8,738        19        8,756        7        7        8   

Software and support

     13,767        5        13,773        113        13,886        13,254        21        13,275        4        4        5   

Software and software-related service revenue

     14,855        19        14,874        110        14,984        13,950        82        14,032        6        6        7   

Professional services and other service revenue

     2,706        0        2,706        32        2,738        2,865        0        2,865        –6        –6        –4   

thereof cloud-related

     222        0        222        1        222        170        0        170        30        30        31   
Total revenue     17,560        19        17,580        142        17,722        16,815        82        16,897        4        4        5   
                                                                                         

Cloud subscriptions and support

     1,087        14        1,101        –3        1,098        696        61        757        56        45        45   

Cloud-related professional services revenue

     222        0        222        1        222        170        0        170        30        30        31   

Cloud revenue

     1,309        14        1,323        –3        1,320        866        61        927        51        43        42   
                                                                                         

Operating Expense Numbers

                                                                                        

Cost of software and software-related services

     –2,894        350        –2,543                        –2,629        364        –2,265        10        12           

thereof cloud

     –481        88        –393                        –314        97        –218        53        80           

Cost of professional services and other services

     –2,379        121        –2,258                        –2,402        123        –2,278        –1        –1           

Total cost of revenue

     –5,272        471        –4,801                        –5,031        487        –4,543        5        6           

Gross profit

     12,288        490        12,778                        11,784        570        12,354        4        3           

Research and development

     –2,331        127        –2,204                        –2,282        120        –2,162        2        2           

Sales and marketing

     –4,304        169        –4,134                        –4,131        205        –3,926        4        5           

General and administration

     –891        85        –806                        –866        70        –796        3        1           

Restructuring

     –126        126        0                        –70        70        0        80        0           

TomorrowNow and Versata litigation

     –309        309        0                        31        –31        0        <-100        0           

Other operating income/expense, net

     4        0        4                        12        0        12        –64        –64           

Total operating expenses

     –13,229        1,288        –11,942        –152        –12,093        –12,336        921        –11,415        7        5        6   

 

 

F7

     For the twelve months ended December 31  
€ millions, unless otherwise stated   2014     2013     Change in %  
     IFRS     Adj.*     Non-IFRS*    

Currency

Impact**

    

Non-IFRS

Constant

Currency**

     IFRS     Adj.*     Non-IFRS*     IFRS     Non-IFRS*    

Non-IFRS

Constant

Currency**

  

Profit Numbers

                                                                                        

Operating profit

     4,331        1,307        5,638        –9        5,629        4,479        1,003        5,482        –3        3        3   
Other non-operating income/expense, net     49        0        49                        –17        0        –17        <-100        <-100           

Finance income

     127        0        127                        115        0        115        11        11           

Finance costs

     –152        0        –152                        –181        0        –181        –16        –16           

Financial income, net

     –25        0        –25                        –66        0        –66        –63        –63           

Profit before tax

     4,356        1,307        5,662                        4,396        1,003        5,399        –1        5           

Income tax TomorrowNow and Versata litigation

     86        –86        0                        –8        8        0        <-100        0           

Other income tax expense

     –1,166        –318        –1,485                        –1,063        –338        –1,401        10        6           

Income tax expense

     –1,080        –405        –1,485                        –1,071        –330        –1,401        1        6           

Profit after tax

     3,275        902        4,178                        3,325        674        3,998        –1        4           

attributable to owners of parent

     3,275        902        4,177                        3,326        674        3,999        –2        4           

attributable to non-controlling interests

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

Key Ratios

                                                                                        
Operating margin (in %)     24.7                32.1                31.8        26.6                32.4        –2.0pp        –0.4pp        –0.7pp   
Effective tax rate (in %)     24.8                26.2                        24.4                25.9        0.4pp        0.3pp           
Earnings per share, basic (in €)     2.74                3.50                        2.79                3.35        –2        4           

* Adjustments in the revenue line items are for support revenue, cloud subscriptions and support 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 payment expenses, restructuring expenses, as well as the TomorrowNow and Versata litigation expenses.

** 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.

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.

EXPLANATION OF NON-IFRS ADJUSTMENTS

 

€ millions, unless otherwise stated   

  Q4 2014

 

   

  1/1–  

  12/31/2014  

 

   

  Q4 2013

 

   

1/1– 

  12/31/2013 

 

Operating profit (IFRS)    1,754    4,331    1,802    4,479

Revenue adjustments

    12    19    6    82

Adjustment for acquisition-related charges

    160    562    130    555

Adjustment for share-based payment expenses

    171    290    135    327

Adjustment for restructuring

    29    126    23    70

Adjustment for TomorrowNow and Versata litigation

    2    309    1    –31

Operating expense adjustments

    362    1,288    290    921
Operating profit adjustments    374    1,307    296    1,003
Operating profit (Non-IFRS)    2,127    5,638    2,098    5,482

Due to rounding, numbers may not add up precisely.

 

 

F8

CALCULATED CLOUD BILLINGS

The following table presents the calculated cloud billings metric which we define as the total of a period’s cloud subscription and support revenue and of the respective period’s change in the deferred cloud subscription and support revenue balance. The table also reconciles the non-IFRS calculated cloud billings metric (including our non-IFRS at constant currency metric) to the respective IFRS based calculated cloud billings metric.

 

      For the three months ended December 31  
€ millions, unless otherwise stated    2014     2013                  
      IFRS     Adj.*     

Non-

IFRS*

    

Currency

Impact**

     

Non-IFRS

Constant

Currency**

     IFRS      Adj.*     

Non-

IFRS*

     

Currency

Impact**

     

Non-IFRS

Constant

Currency**

  
Cloud subscriptions and support      349        10         360        –26         334        208         1         210         0         210   

Closing balance deferred cloud subscriptions and support

      690        10         699        –62         637        443         4         447         9         457   

Opening balance deferred cloud subscriptions and support

      498        0         498        –32         466        376         6         382         0         382   
Change in deferred cloud subscriptions and support      192        10         202        –31         171        68         –2         66         9         75   
Calculated cloud billings      542        20         562        –56         505        276         0         276         9         285   
                                                                                        
Year-over-year changes (2014 vs. 2013, in %)      96 %               104 %               78 %                                             

* Adjustments in the revenue and deferred revenue line items are for cloud subscriptions and support 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 deferred revenue balances are calculated by translating the current period’s opening and closing deferred revenue balances as well as the comparative period’s closing deferred revenue balance using the opening exchange rates of the comparative 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.

 

 

F9

REVENUE BY REGION

The following tables present our IFRS and non-IFRS revenue by region based on customer location. The tables also present a reconciliation from our non-IFRS revenue (including our non-IFRS revenue at constant currency) to the respective most comparable IFRS revenue.

Note: Our non-IFRS revenues are not prepared under a comprehensive set of accounting rules or principles.

 

      For the three months ended December 31  
€ millions    2014      2013      Change in %  
      IFRS      Adj.*      Non-IFRS*     

Currency

Impact**

     

Non-IFRS

Constant

Currency**

      IFRS      Adj.*     

Non-

IFRS*

      IFRS     

Non-

IFRS*

     

Non-IFRS

Constant

Currency**

  
Cloud subscriptions and support revenue by region                                                                                                   

EMEA

      92         1         93         –5         88         50         0         50         84         85         75   

Americas

      222         9         231         –19         212         140         1         141         58         63         50   

APJ

      36         0         36         –2         34         18         0         18         97         98         87   
Cloud subscriptions and support revenue      349         10         360         –26         334         208         1         210         68         72         59   
                                                                                                    
Software and software-related service revenue by region                                                                                                   

EMEA

      2,290         2         2,292         4         2,296         2,189         3         2,193         5         5         5   

Americas

      1,682         9         1,691         –126         1,565         1,478         3         1,481         14         14         6   

APJ

      751         0         751         –27         724         711         0         711         6         6         2   
Software and software-related service revenue      4,722         12         4,734         –149         4,586         4,378         6         4,385         8         8         5   
                                                                                                    

Total revenue by region

                                                                                                   

Germany

      799         0         799         –1         799         793         1         794         1         1         1   

Rest of EMEA

      1,869         2         1,871         3         1,874         1,758         3         1,761         6         6         6   

Total EMEA

      2,668         2         2,671         2         2,672         2,551         3         2,555         5         5         5   

United States

      1,479         9         1,488         –127         1,361         1,264         2         1,266         17         18         7   

Rest of Americas

      460         0         460         –16         444         490         1         491         –6         –6         –10   

Total Americas

      1,939         9         1,948         –144         1,805         1,754         3         1,757         11         11         3   

Japan

      164         0         164         7         171         173         0         173         –5         –5         –1   

Rest of APJ

      687         0         687         –37         650         628         0         628         9         9         3   

Total APJ

      850         0         851         –30         820         801         0         801         6         6         2   

Total revenue

      5,458         12         5,469         –172         5,297         5,106         6         5,113         7         7         4   

 

 

F10

      For the twelve months ended December 31  
€ millions    2014      2013      Change in %  
      IFRS      Adj.*      Non-IFRS*     

Currency

Impact**

     

Non-IFRS

Constant

Currency**

      IFRS      Adj.*     

Non-

IFRS*

      IFRS     

Non-

IFRS*

     

Non-IFRS

Constant

Currency**

  
Cloud subscriptions and support revenue by region                                                                                                   

EMEA

      277         1         278         –1         277         176         0         176         58         58         57   

Americas

      709         12         721         –3         719         457         61         517         55         39         39   

APJ

      101         0         101         1         102         64         0         64         59         59         60   
Cloud subscriptions and support revenue      1,087         14         1,101         –3         1,098         696         61         757         56         45         45   
                                                                                                    
Software and software-related service revenue by region                                                                                                   

EMEA

      7,028         5         7,034         45         7,079         6,616         6         6,622         6         6         7   

Americas

      5,489         14         5,503         12         5,515         5,097         76         5,173         8         6         7   

APJ

      2,337         0         2,337         53         2,390         2,237         0         2,237         4         4         7   
Software and software-related service revenue      14,855         19         14,874         110         14,984         13,950         82         14,032         6         6         7   
                                                                                                    

Total revenue by region

                                                                                                   

Germany

      2,570         1         2,571         –1         2,571         2,513         2         2,514         2         2         2   

Rest of EMEA

      5,813         4         5,817         53         5,870         5,462         5         5,467         6         6         7   

Total EMEA

      8,383         5         8,389         52         8,441         7,975         6         7,981         5         5         6   

United States

      4,898         13         4,911         –35         4,875         4,487         73         4,561         9         8         7   

Rest of Americas

      1,591         0         1,592         61         1,653         1,746         2         1,748         –9         –9         –5   

Total Americas

      6,489         14         6,503         26         6,528         6,233         76         6,309         4         3         3   

Japan

      600         0         600         46         646         631         0         631         –5         –5         2   

Rest of APJ

      2,088         0         2,088         18         2,106         1,975         0         1,976         6         6         7   

Total APJ

      2,688         0         2,688         64         2,753         2,606         0         2,607         3         3         6   

Total revenue

      17,560         19         17,580         142         17,722         16,815         82         16,897         4         4         5   

* Adjustments in the revenue line items are for support revenue, cloud subscriptions and support 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.

 

 

F11

MULTI-QUARTER SUMMARY (IFRS AND NON-IFRS)

 

€ millions, unless otherwise stated   

Q1

2013

     

Q2

2013

     

Q3

2013

     

Q4

2013

     

TY

2013

     

Q1

2014

     

Q2

2014

     

Q3

2014

     

Q4

2014

     

TY

2014

  

Cloud subscriptions and support (IFRS)

      137         159         191         208         696         219         241         277         349         1,087   

Revenue adjustment*

      30         24         5         1         61         1         1         1         10         14   

Cloud subscriptions and support (non-IFRS)

      167         183         197         210         757         221         242         278         360         1,101   
                                                                                           

Software (IFRS)

      657         982         975         1,902         4,516         623         957         951         1,867         4,399   

Revenue adjustment*

      0         0         2         0         2         0         0         0         0         0   

Software (non-IFRS)

      657         982         977         1,903         4,518         623         957         952         1,867         4,399   
                                                                                           

Support (IFRS)

      2,109         2,177         2,184         2,268         8,738         2,213         2,279         2,370         2,506         9,368   

Revenue adjustment*

      4         5         5         5         19         2         1         1         1         5   

Support (non-IFRS)

      2,113         2,182         2,189         2,272         8,756         2,214         2,280         2,371         2,507         9,373   
                                                                                           

Software and support (IFRS)

      2,765         3,159         3,159         4,170         13,254         2,836         3,237         3,322         4,373         13,767   

Revenue adjustment*

      4         5         7         5         21         2         1         1         1         5   

Software and support (non-IFRS)

      2,770         3,164         3,166         4,175         13,275         2,838         3,238         3,323         4,374         13,773   
                                                                                           

Software and software-related service revenue (IFRS)

      2,903         3,318         3,351         4,378         13,950         3,055         3,478         3,599         4,722         14,855   

Revenue adjustment*

      35         29         12         6         82         3         2         2         12         19   

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

      2,937         3,347         3,363         4,385         14,032         3,058         3,480         3,601         4,734         14,874   
                                                                                           

Consulting

      557         580         553         553         2,242         508         520         512         555         2,095   

Other services

      142         165         142         175         623         134         153         143         180         611   

Professional services and other service revenue

(IFRS = non-IFRS)

      698         744         695         728         2,865         643         673         655         735         2,706   
                                                                                           

Total revenue (IFRS)

      3,601         4,062         4,045         5,106         16,815         3,698         4,151         4,254         5,458         17,560   

Revenue adjustment*

      35         29         12         6         82         3         2         2         12         19   

Total revenue (non-IFRS)

      3,636         4,091         4,057         5,113         16,897         3,701         4,153         4,256         5,469         17,580   
                                                                                           

Operating profit (IFRS)

      646         988         1,043         1,802         4,479         723         698         1,157         1,754         4,331   

Revenue adjustment*

      35         29         12         6         82         3         2         2         12         19   

Expense adjustment*

      222         168         242         290         921         193         536         196         362         1,288   

Operating profit (non-IFRS)

      902         1,186         1,296         2,098         5,482         919         1,236         1,355         2,127         5,638   
                                                                                           

Operating margin (IFRS, in %)

      17.9         24.3         25.8         35.3         26.6         19.5         16.8         27.2         32.1         24.7   

Operating margin (non-IFRS, in %)

      24.8         29.0         32.0         41.0         32.4         24.8         29.8         31.8         38.9         32.1   
                                                                                           

Effective tax rate (IFRS, in %)

      16.3         24.8         26.4         25.7         24.4         24.1         22.6         26.5         24.8         24.8   

Effective tax rate (non-IFRS, in %)

      21.4         26.8         27.6         26.6         25.9         25.9         25.4         27.7         25.8         26.2   
                                                                                           

Earnings per share, basic (IFRS, in €)

      0.44         0.61         0.64         1.11         2.79         0.45         0.47         0.74         1.09         2.74   

Earnings per share, basic (non-IFRS, in €)

      0.58         0.71         0.78         1.28         3.35         0.56         0.79         0.84         1.31         3.50   

 

 

F12

€ millions, unless otherwise stated   

Q1

2013

     

Q2

2013

     

Q3

2013

     

Q4

2013

     

TY

2013

     

Q1

2014

     

Q2

2014

     

Q3

2014

     

Q4

2014

     

TY

2014

  

Net cash flows from operating activities

      2,162         320         558         792         3,832         2,352         223         507         491         3,574   

Purchases of intangible assets, and property, plant, and equipment

      –113         –152         –136         –165         –566         –130         –174         –168         –265         –737   

Free cash flow

      2,049         168         422         627         3,266         2,222         49         339         226         2,837   
                                                                                           

Deferred cloud subscriptions and support revenue (IFRS, quarter

end)

      344         354         376         443         443         451         445         498         690         690   

Revenue adjustment*

      33         7         6         4         4         3         3         0         10         10   

Deferred cloud subscriptions and support revenue (non-IFRS,

quarter end)

      377         361         382         447         447         454         448         498         699         699   
                                                                                           

Days’ sales outstanding (DSO, in days)**

      61         62         62         62         62         63         64         65         65         65   
                                                                                           

Headcount (quarter end)***

      64,598         64,937         66,061         66,572         66,572         66,750         67,651         68,835         74,406         74,406   
                                                                                           

Employee retention (in %, rolling 12 months)

      93.9         93.6         93.6         93.5         93.5         93.4         93.5         93.3         93.5         93.5   

Women in management (in %, quarter end)

      21.4         21.4         21.0         21.2         21.2         20.9         21.1         21.3         21.3         21.3   

Greenhouse gas emissions (in kilotons)

      145         145         135         120         545         120         140         125         115         500   

* Adjustments in the revenue line items are for support revenue, cloud subscriptions and support 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 payment expenses, restructuring expenses, as well as the TomorrowNow and Versata litigation expenses.

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”.

** Days’ Sales Outstanding measures the length of time it takes to collect receivables. SAP calculates DSO by dividing the average invoiced accounts receivables balance of the last 12 months by the average monthly sales of the last 12 months.

*** In full-time equivalents

Due to rounding, numbers may not add up precisely.

 

 

F13