SAP Raises Outlook After Strong Third Quarter
- Cloud and software revenue up 8% (IFRS) and up 9% (non-IFRS at constant currencies)
- Cloud revenue up 28% (IFRS) and up 29% (non-IFRS at constant currencies)
- Operating profit down 9% (IFRS) and up 1% (non-IFRS at constant currencies)
- Operating cash flow up 52% in the third quarter and up 12% year-to-date
- SAP S/4HANA is leading the digital transformation with more than 4,100 customers
WALLDORF, Germany, Oct. 21, 2016 /PRNewswire/ -- SAP SE (NYSE: SAP) today announced its financial results for the third quarter and nine months ended September 30, 2016.
"Strong customer adoption of the SAP portfolio is driving results beyond expectations. The S/4HANA innovation cycle is the fastest in our history and is catalyzing the performance of all SAP cloud solutions. We are a growth company and confidently raise our guidance for the full year." - Bill McDermott, CEO
"In the third quarter we demonstrated continued momentum and strong execution. Year to date we are tracking to the upper end of all outlook metrics set at the beginning of the year. Paired with a robust pipeline, this gives us the confidence that we will deliver yet another strong fourth quarter." - Luka Mucic, CFO
Business Highlights
Financial Highlights
Third quarter IFRS cloud subscriptions and support revenue grew 28% year-over-year to €769 million. Non-IFRS cloud subscriptions and support revenue rose 28% year-over-year (29% at constant currencies) to €769 million. New cloud bookings1 were up 24% (24% at constant currencies) in the third quarter and reached €265 million.
SAP's rapidly expanding cloud business together with solid growth in support revenue continued to drive the share of more predictable revenue. The total of cloud subscriptions & support revenue and software support revenue reached 64% of total revenue in the third quarter 2016, up 1 percentage point.
SAP is outpacing its main competitor in cloud and software revenue growth. IFRS cloud and software revenue was €4.45 billion, an increase of 8%. Non-IFRS cloud and software revenue was €4.46 billion, an increase of 8% (9% at constant currencies).
IFRS operating profit was down 9% to €1.10 billion reflecting an increase in stock based compensation expense following the strong appreciation of SAP's share price in the third quarter. Non-IFRS operating profit was up 1% to €1.64 billion. IFRS earnings per share decreased 19% to €0.61. Non-IFRS earnings per share decreased 7% to €0.91. This decline was due to higher stock based compensation expense (IFRS only) and lower non-operating and financial income.
For the nine months ended September 30, operating cash flow was €3.63 billion (2015: €3.24 billion), an increase of 12% year-over-year, and free cash flow increased 5% year-over-year to €2.96 billion (2015: €2.82 billion).
SAP S/4HANA and SAP HANA Cloud Platform
SAP added more than 400 SAP S/4HANA customers in the quarter, of which approximately 40% are net new SAP customers. Customers continue to embrace the benefits of running a live business on a massively simplified architecture. The SAP HANA Cloud Platform allows customers to extend functionalities, build new fast-paced applications with rapid development tools, and integrate across applications and deployment models. The HANA Cloud Platform is instrumental in the Internet of Things (IoT) revolution by providing connectivity to a large variety of devices and machines. With SAP IoT technology, customers like Trenitalia, Italy's largest train company, are connecting transportation vehicles and tools to revolutionize asset management with real-time insights from sensors.
Human Capital Management
SAP continues to gain traction with its cloud-based Human Capital Management solutions. SAP delivers total workforce management solutions globally across permanent and contingent labor. SAP is infusing intelligent services like automated matching of resumes to open positions and machine learning to root out bias in the workplace while promoting diversity and inclusion. The customer count for SAP SuccessFactors Employee Central, which is the core of our Human Capital Management offerings, exceeded 1,350 at the end of the third quarter.
Customer Engagement and Commerce
SAP seamlessly combines customer engagement and commerce (CEC) for an increasingly omni-channel world. Our hybris solution serves both B2C and B2B across a wide range of industries, including retail, telco, financial services, public sector, and manufacturing. SAP is unique because it also enables businesses to connect the front and back office in real-time and fulfill ecommerce in one end-to-end value chain. CEC saw high double-digit year-over-year customer growth in the third quarter.
Business Networks
SAP is helping customers of all sizes embrace an increasingly interdependent world. Each of SAP's business network solutions connects a large ecosystem of customers, suppliers and partners. These network solutions are highly synergistic to SAP's other offerings.
Cloud subscriptions and support revenue in the SAP Business Network segment was up 17% at constant currencies in the third quarter.
Approximately 2.4 million connected companies trade over $840 billion of commerce on the Ariba network, more than 44 million end users process travel and expenses effortlessly with Concur and customers managed over 2.8 million flexible workers in approximately 130 countries with the Fieldglass platform over the past 12 months.
Regional Revenue Performance
The Company had a strong performance in the EMEA region, with an increase in cloud and software revenue of 6% (IFRS) and 8% (non-IFRS at constant currencies). Cloud subscriptions and support revenue grew 34% (IFRS) and 38% (non-IFRS at constant currencies). In EMEA, SAP had double-digit software licenses revenue growth in Germany, France, UK and South Africa.
In the Americas region, the Company grew cloud and software revenue by 9% (IFRS) and 9% (non-IFRS at constant currencies) and cloud subscriptions and support revenue by 24% (IFRS) and 24% (non-IFRS at constant currencies). In Latin America, despite continued macroeconomic headwinds, SAP had solid double-digit growth in software licenses revenue in Brazil and Mexico.
In the APJ region cloud and software revenue was up 13% (IFRS) and 8% (non-IFRS at constant currencies), with cloud subscriptions and support revenue growing by 50% (IFRS) and 46% (non-IFRS at constant currencies). In APJ, SAP had double-digit software licenses revenue growth in Japan, Malaysia and Singapore and solid software licenses revenue growth in SAP's Greater China region2.
1 New cloud bookings consist of order entry of a given period that is expected to be classified as cloud subscriptions and support revenue and results from purchases by new customers and from incremental purchases by existing customers. Consequently, orders to renew existing contracts are not included. The order amount must be committed. Consequently, due to their pay-per-use nature, business network transaction fees which do not include a committed minimum consumption are not reflected in the bookings metric (e.g. SAP Ariba and SAP Fieldglass transaction-based fees). Amounts included in the measures are generally annualized. |
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2 SAP's Greater China region includes China, Hong Kong and Taiwan. |
Financial Results at a Glance
Third Quarter 20161) |
|||||||
IFRS |
Non-IFRS2) |
||||||
€ million, unless otherwise stated |
Q3 2016 |
Q3 2015 |
∆ in % |
Q3 2016 |
Q3 2015 |
∆ in % |
∆ in % |
New Cloud Bookings3) |
N/A |
N/A |
N/A |
265 |
213 |
24 |
24 |
Cloud subscriptions and support |
769 |
599 |
28 |
769 |
600 |
28 |
29 |
Software licenses and support |
3,686 |
3,523 |
5 |
3,687 |
3,524 |
5 |
5 |
Cloud and software |
4,455 |
4,122 |
8 |
4,456 |
4,124 |
8 |
9 |
Total revenue |
5,375 |
4,985 |
8 |
5,375 |
4,987 |
8 |
8 |
Share of predictable revenue (in %) |
64 |
62 |
1pp |
64 |
62 |
1pp |
|
Operating profit |
1,103 |
1,214 |
–9 |
1,638 |
1,616 |
1 |
1 |
Profit after tax |
725 |
895 |
–19 |
1,089 |
1,173 |
–7 |
|
Basic earnings per share (€) |
0.61 |
0.75 |
–19 |
0.91 |
0.98 |
–7 |
|
Number of employees (FTE) |
82,426 |
75,643 |
9 |
N/A |
N/A |
N/A |
N/A |
First Nine Months 20161) |
|||||||
IFRS |
Non-IFRS2) |
||||||
€ million, unless otherwise stated |
Q1–Q3 |
Q1–Q3 |
∆ in % |
Q1–Q3 2016 |
Q1–Q3 |
∆ in % |
∆ in % |
New Cloud Bookings3) |
N/A |
N/A |
N/A |
664 |
529 |
26 |
27 |
Cloud subscriptions and support |
2,166 |
1,654 |
31 |
2,168 |
1,664 |
30 |
32 |
Software licenses and support |
10,497 |
10,183 |
3 |
10,500 |
10,184 |
3 |
5 |
Cloud and software |
12,663 |
11,837 |
7 |
12,668 |
11,848 |
7 |
8 |
Total revenue |
15,339 |
14,451 |
6 |
15,343 |
14,462 |
6 |
8 |
Share of predictable revenue (in %) |
65 |
63 |
2pp |
65 |
63 |
2pp |
|
Operating profit |
3,184 |
2,552 |
25 |
4,258 |
4,066 |
5 |
5 |
Profit after tax |
2,108 |
1,778 |
19 |
2,832 |
2,831 |
0 |
|
Basic earnings per share (€) |
1.77 |
1.49 |
19 |
2.37 |
2.37 |
0 |
|
Number of employees (FTE) |
82,426 |
75,643 |
9 |
N/A |
N/A |
N/A |
N/A |
1) All figures are unaudited. |
|
2) For a detailed description of SAP's non-IFRS measures see Explanation of Non-IFRS Measures online. For a breakdown of the individual adjustments see page F7 in this Quarterly Statement. |
|
3) As this is an order entry metric, there is no IFRS equivalent. |
|
Due to rounding, numbers may not add up precisely. |
Business Outlook 2016
The Company is raising its outlook for the full year 2016:
- The Company now expects full year 2016 non-IFRS cloud subscriptions and support revenue to be in a range of €3.00 - €3.05 billion at constant currencies (2015: €2.30 billion). The upper end of this range represents a growth rate of 33% at constant currencies.
- The Company now expects full year 2016 non-IFRS cloud and software revenue to increase by 6.5% - 8.5% at constant currencies (2015: €17.23 billion).
- The Company now expects full-year 2016 non-IFRS operating profit to be in a range of €6.5 billion - €6.7 billion at constant currencies (2015: €6.35 billion).
While the Company's full-year 2016 business outlook is at constant currencies, actual currency reported figures are expected to continue to be impacted by exchange rate fluctuations. If exchange rates remain at the end of September 2016 levels for the rest of the year, the Company expects its non-IFRS cloud and software revenue growth rate to experience a currency impact in a range of -3 to -1 percentage points for the fourth quarter and the full year 2016 and its non-IFRS operating profit growth rate to experience a currency impact in a range of -2 to 0 percentage points for the fourth quarter and the full year 2016.
Additional Information
General Remarks About this Quarterly Statement
Until 2015, SAP's quarterly earnings reporting consisted of an earnings press release with condensed financial information and an interim report. This quarterly statement replaces both of these documents and includes all relevant information of both of these documents. Starting in 2016, we issue a quarterly statement for each of the four fiscal quarters. Additionally, we issue a half year report and a full year integrated report as before.
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.
Webcast
SAP earnings conference call for financial analysts will take place on Friday, October 21st 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 335,000 business and public sector customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.
For more information, financial community only: |
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Stefan Gruber |
+49 (6227) 7-44872 |
[email protected], CET |
Follow SAP Investor Relations on Twitter at @sapinvestor. |
||
For more information, press only: |
||
Nicola Leske |
+49 (6227) 7-50852 |
[email protected], CET |
Daniel Reinhardt |
+49 (6227) 7-40201 |
[email protected], CET |
Rajiv Sekhri |
+49 (6227) 7-74871 |
[email protected], CET |
For customers interested in learning more about SAP products: |
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Global Customer Center: |
+49 180 534-34-24 |
|
United States Only: |
+1 (800) 872-1SAP (+1-800-872-1727) |
Financial and Non-Financial Key Facts |
||||||||
€ millions, unless otherwise stated |
Q1 |
Q2 |
Q3 |
Q4 |
TY |
Q1 |
Q2 |
Q3 |
Revenues |
||||||||
Cloud subscriptions and support (IFRS) |
503 |
552 |
599 |
631 |
2,286 |
677 |
720 |
769 |
Cloud subscriptions and support (non-IFRS) |
509 |
555 |
600 |
632 |
2,296 |
678 |
721 |
769 |
% change – yoy |
131 |
129 |
116 |
76 |
109 |
33 |
30 |
28 |
% change constant currency – yoy |
95 |
92 |
90 |
60 |
82 |
33 |
33 |
29 |
Software licenses (IFRS) |
696 |
979 |
1,014 |
2,146 |
4,835 |
609 |
1,040 |
1,034 |
Software licenses (non-IFRS) |
696 |
979 |
1,015 |
2,146 |
4,836 |
609 |
1,042 |
1,034 |
% change – yoy |
12 |
2 |
7 |
15 |
10 |
–13 |
6 |
2 |
% change constant currency – yoy |
1 |
–7 |
4 |
11 |
4 |
–10 |
10 |
2 |
Software support (IFRS) |
2,454 |
2,531 |
2,509 |
2,600 |
10,093 |
2,564 |
2,598 |
2,653 |
Software support (non-IFRS) |
2,454 |
2,531 |
2,509 |
2,600 |
10,094 |
2,564 |
2,598 |
2,653 |
% change – yoy |
17 |
17 |
12 |
11 |
14 |
5 |
3 |
6 |
% change constant currency – yoy |
7 |
7 |
6 |
6 |
7 |
5 |
6 |
6 |
Software licenses and support (IFRS) |
3,150 |
3,510 |
3,523 |
4,745 |
14,928 |
3,172 |
3,639 |
3,686 |
Software licenses and support (non-IFRS) |
3,150 |
3,510 |
3,524 |
4,745 |
14,930 |
3,173 |
3,640 |
3,687 |
% change – yoy |
16 |
13 |
11 |
13 |
13 |
1 |
4 |
5 |
% change constant currency – yoy |
5 |
3 |
6 |
9 |
6 |
2 |
7 |
5 |
Cloud and software (IFRS) |
3,653 |
4,062 |
4,122 |
5,377 |
17,214 |
3,850 |
4,359 |
4,455 |
Cloud and software (non-IFRS) |
3,659 |
4,065 |
4,124 |
5,378 |
17,226 |
3,851 |
4,361 |
4,456 |
% change – yoy |
24 |
21 |
19 |
18 |
20 |
5 |
7 |
8 |
% change constant currency – yoy |
12 |
9 |
12 |
13 |
12 |
6 |
11 |
9 |
Total revenue (IFRS) |
4,497 |
4,970 |
4,985 |
6,342 |
20,793 |
4,727 |
5,237 |
5,375 |
Total revenue (non-IFRS) |
4,502 |
4,972 |
4,987 |
6,343 |
20,805 |
4,728 |
5,239 |
5,375 |
% change – yoy |
22 |
20 |
17 |
16 |
18 |
5 |
5 |
8 |
% change constant currency – yoy |
10 |
8 |
10 |
11 |
10 |
6 |
9 |
8 |
Share of predictable revenue (IFRS, in %) |
66 |
62 |
62 |
51 |
60 |
69 |
63 |
64 |
Share of predictable revenue (non-IFRS, in %) |
66 |
62 |
62 |
51 |
60 |
69 |
63 |
64 |
Profits |
||||||||
Operating profit (IFRS) |
638 |
701 |
1,214 |
1,700 |
4,252 |
813 |
1,269 |
1,103 |
Operating profit (non-IFRS) |
1,056 |
1,394 |
1,616 |
2,282 |
6,348 |
1,104 |
1,516 |
1,638 |
% change |
15 |
13 |
19 |
7 |
13 |
5 |
9 |
1 |
% change constant currency |
–2 |
1 |
15 |
3 |
5 |
4 |
11 |
1 |
Profit after tax (IFRS) |
413 |
469 |
895 |
1,278 |
3,056 |
570 |
813 |
725 |
Profit after tax (non-IFRS) |
697 |
960 |
1,173 |
1,670 |
4,501 |
763 |
979 |
1,089 |
% change |
5 |
2 |
16 |
6 |
8 |
9 |
2 |
–7 |
Margins |
||||||||
Cloud subscriptions and support gross margin (IFRS, in %) |
55.3 |
56.5 |
57.9 |
51.8 |
55.3 |
57.5 |
57.0 |
56.7 |
Cloud subscriptions and support gross margin (non-IFRS, in %) |
65.1 |
65.7 |
68.8 |
63.0 |
65.6 |
66.3 |
65.2 |
64.9 |
Software and support gross margin (IFRS, in %) |
82.8 |
84.0 |
85.0 |
86.1 |
84.7 |
84.2 |
86.1 |
85.4 |
Software and support gross margin (non-IFRS, in %) |
85.1 |
86.1 |
86.7 |
87.7 |
86.6 |
85.9 |
87.4 |
87.4 |
Cloud and software gross margin (IFRS, in %) |
79.0 |
80.3 |
81.1 |
82.1 |
80.8 |
79.5 |
81.3 |
80.5 |
Cloud and software gross margin (non-IFRS, in %) |
82.3 |
83.3 |
84.1 |
84.8 |
83.8 |
82.4 |
83.7 |
83.5 |
Gross margin (IFRS, in %) |
66.8 |
69.0 |
70.7 |
72.4 |
70.0 |
67.0 |
70.4 |
69.4 |
Gross margin (non-IFRS, in %) |
70.6 |
72.4 |
73.6 |
75.6 |
73.3 |
69.7 |
72.7 |
72.7 |
Operating margin (IFRS, in %) |
14.2 |
14.1 |
24.3 |
26.8 |
20.5 |
17.2 |
24.2 |
20.5 |
Operating margin (non-IFRS, in %) |
23.5 |
28.0 |
32.4 |
36.0 |
30.5 |
23.4 |
28.9 |
30.5 |
AT&S Segment1) – Cloud subscriptions and support gross margin (in %) |
50 |
51 |
56 |
51 |
52 |
54 |
52 |
51 |
AT&S Segment1) – Gross margin (in %) |
71 |
73 |
74 |
77 |
74 |
70 |
73 |
74 |
AT&S Segment1) – Segment margin (in %) |
34 |
39 |
43 |
46 |
41 |
34 |
40 |
40 |
SAP BN Segment2) – Cloud subscriptions and support gross margin (in %) |
75 |
75 |
77 |
72 |
75 |
75 |
76 |
77 |
SAP BN Segment2) – Gross margin (in %) |
68 |
68 |
71 |
65 |
68 |
67 |
68 |
68 |
SAP BN Segment2) – Segment margin (in %) |
18 |
16 |
24 |
20 |
19 |
16 |
18 |
20 |
Key Profit Ratios |
||||||||
Effective tax rate (IFRS, in %) |
13.6 |
26.4 |
27.1 |
22.4 |
23.4 |
23.3 |
28.9 |
28.4 |
Effective tax rate (non-IFRS, in %) |
22.3 |
27.8 |
28.0 |
25.1 |
26.1 |
26.2 |
29.6 |
29.7 |
Earnings per share, basic (IFRS, in €) |
0.35 |
0.39 |
0.75 |
1.07 |
2.56 |
0.48 |
0.68 |
0.61 |
Earnings per share, basic (non-IFRS, in €) |
0.58 |
0.80 |
0.98 |
1.40 |
3.77 |
0.64 |
0.82 |
0.91 |
Order Entry |
||||||||
New Cloud Bookings |
117 |
199 |
213 |
344 |
874 |
145 |
255 |
265 |
Deferred cloud subscriptions and support revenue (IFRS, quarter end) |
793 |
789 |
782 |
957 |
957 |
953 |
1,003 |
1,081 |
Orders – Number of on-premise software deals (in transactions) |
12,037 |
13,504 |
14,027 |
17,871 |
57,439 |
12,884 |
14,468 |
13,048 |
Share of software orders greater than € 5 million (in % of total software order entry) |
23 |
24 |
24 |
31 |
27 |
17 |
29 |
26 |
Share of software orders greater than € 1 million (in % of total software order entry) |
49 |
41 |
44 |
34 |
40 |
48 |
38 |
40 |
Liquidity and Cash Flow |
||||||||
Net cash flows from operating activities |
2,366 |
410 |
466 |
397 |
3,638 |
2,482 |
439 |
707 |
Purchase of intangible assets and property, plant, and equipment (without acquisitions) |
–139 |
–137 |
–148 |
–212 |
–636 |
–168 |
–237 |
–261 |
Free cash flow |
2,227 |
273 |
317 |
184 |
3,001 |
2,313 |
202 |
446 |
% of total revenue (IFRS) |
50 |
5 |
6 |
3 |
14 |
49 |
4 |
8 |
% of profit after tax (IFRS) |
539 |
58 |
35 |
14 |
98 |
406 |
25 |
61 |
Group liquidity, gross |
5,333 |
4,180 |
4,608 |
3,559 |
3,559 |
5,853 |
4,347 |
4,388 |
Group debt |
–10,524 |
–10,432 |
–10,428 |
–9,174 |
–9,174 |
–9,080 |
–8,593 |
–8,134 |
Group liquidity, net |
–5,191 |
–6,251 |
–5,820 |
–5,615 |
–5,615 |
–3,227 |
–4,245 |
–3,746 |
Days' sales outstanding (DSO, in days)3) |
67 |
68 |
69 |
71 |
71 |
72 |
73 |
74 |
Financial Position |
||||||||
Cash and cash equivalents |
4,635 |
3,923 |
3,844 |
3,411 |
3,411 |
5,743 |
4,206 |
4,112 |
Goodwill |
22,896 |
22,300 |
22,222 |
22,689 |
22,689 |
21,922 |
22,354 |
22,276 |
Total assets |
43,753 |
41,088 |
40,649 |
41,390 |
41,390 |
42,884 |
41,788 |
41,601 |
Equity |
22,117 |
20,801 |
21,540 |
23,295 |
23,295 |
22,920 |
22,963 |
23,764 |
Equity ratio (total equity in % of total assets) |
51 |
51 |
53 |
56 |
56 |
53 |
55 |
57 |
Non-Financials |
||||||||
Headcount (quarter end)4) |
74,551 |
74,497 |
75,643 |
76,986 |
76,986 |
78,230 |
79,962 |
82,426 |
Employee retention (in %, rolling 12 months) |
93.3 |
92.6 |
91.9 |
91.8 |
91.8 |
92.0 |
92.6 |
93.4 |
Women in management (in %, quarter end) |
22.3 |
22.9 |
23.2 |
23.6 |
23.6 |
23.6 |
24.1 |
24.3 |
Greenhouse gas emissions (in kilotons) |
145 |
125 |
110 |
75 |
455 |
120 |
95 |
85 |
1) Applications, Technology & Services Segment |
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2) SAP Business Network Segment |
|
3) 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. |
|
4) In full-time equivalents |
|
Due to rounding, numbers may not add up precisely. |
Consolidated Income Statements of SAP Group (IFRS) – Quarter |
||||
€ millions, unless otherwise stated |
Q3 2016 |
Q3 2015 |
∆ in % |
|
Cloud subscriptions and support |
769 |
599 |
28 |
|
Software licenses |
1,034 |
1,014 |
2 |
|
Software support |
2,653 |
2,509 |
6 |
|
Software licenses and support |
3,686 |
3,523 |
5 |
|
Cloud and software |
4,455 |
4,122 |
8 |
|
Services |
920 |
863 |
7 |
|
Total revenue |
5,375 |
4,985 |
8 |
|
Cost of cloud subscriptions and support |
–333 |
–252 |
32 |
|
Cost of software licenses and support |
–537 |
–528 |
2 |
|
Cost of cloud and software |
–870 |
–780 |
11 |
|
Cost of services |
–776 |
–680 |
14 |
|
Total cost of revenue |
–1,646 |
–1,460 |
13 |
|
Gross profit |
3,729 |
3,525 |
6 |
|
Research and development |
–766 |
–657 |
17 |
|
Sales and marketing |
–1,590 |
–1,269 |
25 |
|
General and administration |
–268 |
–239 |
12 |
|
Restructuring |
1 |
–145 |
<-100 |
|
Other operating income/expense, net |
–4 |
–3 |
55 |
|
Total operating expenses |
–4,272 |
–3,771 |
13 |
|
Operating profit |
1,103 |
1,214 |
–9 |
|
Other non-operating income/expense, net |
–43 |
–26 |
65 |
|
Finance income |
32 |
102 |
–69 |
|
Finance costs |
–78 |
–60 |
30 |
|
Financial income, net |
–46 |
42 |
<-100 |
|
Profit before tax |
1,013 |
1,229 |
–18 |
|
Income tax expense |
–288 |
–333 |
–14 |
|
Profit after tax |
725 |
895 |
–19 |
|
Attributable to owners of parent |
730 |
898 |
–19 |
|
Attributable to non-controlling interests |
–5 |
–2 |
>100 |
|
Earnings per share, basic (in €)1) |
0.61 |
0.75 |
–19 |
|
Earnings per share, diluted (in €)1) |
0.61 |
0.75 |
–19 |
1) For the three months ended September 30, 2016 and 2015, the weighted average number of shares was 1,198 million (diluted 1,199 million) and 1,198 million (diluted: 1,198 million), respectively (treasury stock excluded). |
|
Due to rounding, numbers may not add up precisely. |
Consolidated Statements of Income of SAP Group (IFRS) – Nine Months |
||||
€ millions, unless otherwise stated |
Q1–Q3 |
Q1–Q3 |
∆ in % |
|
Cloud subscriptions and support |
2,166 |
1,654 |
31 |
|
Software licenses |
2,682 |
2,689 |
0 |
|
Software support |
7,815 |
7,494 |
4 |
|
Software licenses and support |
10,497 |
10,183 |
3 |
|
Cloud and software |
12,663 |
11,837 |
7 |
|
Services |
2,675 |
2,614 |
2 |
|
Total revenue |
15,339 |
14,451 |
6 |
|
Cost of cloud subscriptions and support |
–930 |
–717 |
30 |
|
Cost of software licenses and support |
–1,543 |
–1,631 |
–5 |
|
Cost of cloud and software |
–2,474 |
–2,349 |
5 |
|
Cost of services |
–2,282 |
–2,145 |
6 |
|
Total cost of revenue |
–4,756 |
–4,494 |
6 |
|
Gross profit |
10,583 |
9,957 |
6 |
|
Research and development |
–2,184 |
–2,049 |
7 |
|
Sales and marketing |
–4,461 |
–4,027 |
11 |
|
General and administration |
–727 |
–766 |
–5 |
|
Restructuring |
–20 |
–563 |
–96 |
|
Other operating income/expense, net |
–5 |
0 |
<-100 |
|
Total operating expenses |
–12,154 |
–11,899 |
2 |
|
Operating profit |
3,184 |
2,552 |
25 |
|
Other non-operating income/expense, net |
–180 |
–228 |
–21 |
|
Finance income |
105 |
189 |
–44 |
|
Finance costs |
–210 |
–169 |
24 |
|
Financial income, net |
–105 |
20 |
<-100 |
|
Profit before tax |
2,900 |
2,344 |
24 |
|
Income tax expense |
–792 |
–567 |
40 |
|
Profit after tax |
2,108 |
1,778 |
19 |
|
Attributable to owners of parent |
2,118 |
1,783 |
19 |
|
Attributable to non-controlling interests |
–10 |
–5 |
98 |
|
Earnings per share, basic (in €)1) |
1.77 |
1.49 |
19 |
|
Earnings per share, diluted (in €)1) |
1.77 |
1.49 |
19 |
1) For the nine months ended September 30, 2016 and 2015, the weighted average number of shares was 1,198 million (diluted 1,199 million) and 1,196 million (diluted: 1,197 million), respectively (treasury stock excluded). |
|
Due to rounding, numbers may not add up precisely. |
Consolidated Statements of Financial Position of SAP Group (IFRS) |
|||
as at September 30, 2016 and December 31, 2015 |
|||
€ millions |
2016 |
2015 |
|
Cash and cash equivalents |
4,112 |
3,411 |
|
Other financial assets |
501 |
351 |
|
Trade and other receivables |
4,824 |
5,274 |
|
Other non-financial assets |
636 |
468 |
|
Tax assets |
300 |
235 |
|
Total current assets |
10,374 |
9,739 |
|
Goodwill |
22,276 |
22,689 |
|
Intangible assets |
3,730 |
4,280 |
|
Property, plant, and equipment |
2,373 |
2,192 |
|
Other financial assets |
1,411 |
1,336 |
|
Trade and other receivables |
111 |
87 |
|
Other non-financial assets |
396 |
332 |
|
Tax assets |
391 |
282 |
|
Deferred tax assets |
539 |
453 |
|
Total non-current assets |
31,227 |
31,651 |
|
Total assets |
41,601 |
41,390 |
|
€ millions |
2016 |
2015 |
|
Trade and other payables |
1,114 |
1,088 |
|
Tax liabilities |
249 |
230 |
|
Financial liabilities |
1,269 |
841 |
|
Other non-financial liabilities |
2,752 |
3,407 |
|
Provisions |
192 |
299 |
|
Deferred income |
3,373 |
2,001 |
|
Total current liabilities |
8,949 |
7,867 |
|
Trade and other payables |
113 |
81 |
|
Tax liabilities |
448 |
402 |
|
Financial liabilities |
7,248 |
8,681 |
|
Other non-financial liabilities |
405 |
331 |
|
Provisions |
191 |
180 |
|
Deferred tax liabilities |
392 |
448 |
|
Deferred income |
90 |
106 |
|
Total non-current liabilities |
8,888 |
10,228 |
|
Total liabilities |
17,837 |
18,095 |
|
Issued capital |
1,229 |
1,229 |
|
Share premium |
565 |
558 |
|
Retained earnings |
20,785 |
20,044 |
|
Other components of equity |
2,263 |
2,561 |
|
Treasury shares |
–1,101 |
–1,124 |
|
Equity attributable to owners of parent |
23,742 |
23,267 |
|
Non-controlling interests |
22 |
28 |
|
Total equity |
23,764 |
23,295 |
|
Total equity and liabilities |
41,601 |
41,390 |
Due to rounding, numbers may not add up precisely. |
Consolidated Statements of Cash Flows of SAP Group (IFRS) |
||
€ millions |
Q1–Q3 2016 |
Q1–Q3 2015 |
Profit after tax |
2,108 |
1,778 |
Adjustments to reconcile profit after taxes to net cash flows from operating activities: |
||
Depreciation and amortization |
932 |
965 |
Income tax expense |
792 |
567 |
Financial income, net |
105 |
–20 |
Decrease/increase in sales and bad debt allowances on trade receivables |
61 |
111 |
Other adjustments for non-cash items |
8 |
–12 |
Decrease/increase in trade and other receivables |
290 |
197 |
Decrease/increase in other assets |
–351 |
–212 |
Decrease/increase in trade payables, provisions, and other liabilities |
–583 |
–248 |
Decrease/increase in deferred income |
1,402 |
1,216 |
Interest paid |
–145 |
–111 |
Interest received |
57 |
60 |
Income taxes paid, net of refunds |
–1,048 |
–1,049 |
Net cash flows from operating activities |
3,628 |
3,241 |
Business combinations, net of cash and cash equivalents acquired |
–54 |
–13 |
Cash receipts from derivative financial instruments related to business combinations |
0 |
266 |
Total cash flows for business combinations, net of cash and cash equivalents acquired |
–54 |
253 |
Purchase of intangible assets or property, plant, and equipment |
–666 |
–424 |
Proceeds from sales of intangible assets or property, plant, and equipment |
48 |
46 |
Purchase of equity or debt instruments of other entities |
–559 |
–1,709 |
Proceeds from sales of equity or debt instruments of other entities |
457 |
1,042 |
Net cash flows from investing activities |
–773 |
–793 |
Dividends paid |
–1,378 |
–1,316 |
Proceeds from reissuance of treasury shares |
24 |
58 |
Proceeds from borrowings |
401 |
1,745 |
Repayments of borrowings |
–1,394 |
–2,520 |
Transactions with non-controlling interests |
3 |
0 |
Net cash flows from financing activities |
–2,345 |
–2,033 |
Effect of foreign currency rates on cash and cash equivalents |
192 |
101 |
Net decrease/increase in cash and cash equivalents |
702 |
516 |
Cash and cash equivalents at the beginning of the period |
3,411 |
3,328 |
Cash and cash equivalents at the end of the period |
4,112 |
3,844 |
Due to rounding, numbers may not add up precisely. |
Segment Reporting (IFRS) |
|||||
Applications, Technology & Services |
|||||
€ millions, unless otherwise stated |
Q3 2016 |
Q3 2015 |
∆ in % |
∆ in % |
|
Actual |
Constant |
Actual |
Actual |
Constant |
|
Cloud subscriptions and support |
353 |
359 |
244 |
45 |
47 |
Software licenses |
1,013 |
1,017 |
1,001 |
1 |
2 |
Software support |
2,626 |
2,639 |
2,482 |
6 |
6 |
Software licenses and support |
3,639 |
3,656 |
3,482 |
4 |
5 |
Cloud and software |
3,992 |
4,014 |
3,727 |
7 |
8 |
Services |
824 |
828 |
800 |
3 |
4 |
Total segment revenue |
4,816 |
4,843 |
4,526 |
6 |
7 |
Cost of cloud subscriptions and support |
–171 |
–171 |
–108 |
59 |
59 |
Cost of software licenses and support |
–461 |
–464 |
–453 |
2 |
2 |
Cost of cloud and software |
–632 |
–635 |
–560 |
13 |
13 |
Cost of services |
–635 |
–643 |
–613 |
4 |
5 |
Total cost of revenue |
–1,268 |
–1,278 |
–1,173 |
8 |
9 |
Segment gross profit |
3,548 |
3,565 |
3,353 |
6 |
6 |
Other segment expenses |
–1,598 |
–1,616 |
–1,420 |
13 |
14 |
Segment profit |
1,950 |
1,948 |
1,933 |
1 |
1 |
Margins |
|||||
Cloud subscriptions and support gross margin (in %) |
51 |
52 |
56 |
–4pp |
–4pp |
Gross margin (in %) |
74 |
74 |
74 |
–0pp |
–0pp |
Segment margin (in %) |
40 |
40 |
43 |
–2pp |
–2pp |
SAP Business Network |
|||||
€ millions, unless otherwise stated |
Q3 2016 |
Q3 2015 |
∆ in % |
∆ in % |
|
Actual |
Constant |
Actual |
Actual |
Constant |
|
Cloud subscriptions and support |
404 |
405 |
347 |
17 |
17 |
Software licenses |
0 |
0 |
0 |
0 |
0 |
Software support |
6 |
5 |
8 |
–31 |
–31 |
Software licenses and support |
5 |
5 |
8 |
–31 |
–32 |
Cloud and software |
410 |
410 |
355 |
15 |
16 |
Services |
75 |
75 |
57 |
32 |
32 |
Total segment revenue |
485 |
486 |
412 |
18 |
18 |
Cost of cloud subscriptions and support |
–94 |
–94 |
–79 |
19 |
20 |
Cost of software licenses and support |
0 |
0 |
0 |
0 |
0 |
Cost of cloud and software |
–94 |
–95 |
–79 |
19 |
20 |
Cost of services |
–61 |
–62 |
–41 |
47 |
49 |
Total cost of revenue |
–155 |
–156 |
–120 |
29 |
30 |
Segment gross profit |
330 |
329 |
292 |
13 |
13 |
Other segment expenses |
–235 |
–238 |
–194 |
21 |
23 |
Segment profit |
95 |
92 |
98 |
–3 |
–7 |
Margins |
|||||
Cloud subscriptions and support gross margin (in %) |
77 |
77 |
77 |
–1pp |
–1pp |
Gross margin (in %) |
68 |
68 |
71 |
–3pp |
–3pp |
Segment margin (in %) |
20 |
19 |
24 |
–4pp |
–5pp |
Due to rounding, numbers may not add up precisely. |
Applications, Technology & Services |
|||||
€ millions, unless otherwise stated |
Q1–Q3 2016 |
Q1–Q3 2015 |
∆ in % |
∆ in % |
|
Actual |
Constant |
Actual |
Actual |
Constant |
|
Cloud subscriptions and support |
969 |
986 |
660 |
47 |
49 |
Software licenses |
2,629 |
2,682 |
2,647 |
–1 |
1 |
Software support |
7,738 |
7,839 |
7,416 |
4 |
6 |
Software licenses and support |
10,367 |
10,521 |
10,063 |
3 |
5 |
Cloud and software |
11,336 |
11,507 |
10,723 |
6 |
7 |
Services |
2,454 |
2,499 |
2,406 |
2 |
4 |
Total segment revenue |
13,789 |
14,006 |
13,130 |
5 |
7 |
Cost of cloud subscriptions and support |
–461 |
–466 |
–313 |
47 |
49 |
Cost of software licenses and support |
–1,383 |
–1,402 |
–1,400 |
–1 |
0 |
Cost of cloud and software |
–1,845 |
–1,869 |
–1,713 |
8 |
9 |
Cost of services |
–1,983 |
–2,032 |
–1,880 |
6 |
8 |
Total cost of revenue |
–3,828 |
–3,900 |
–3,593 |
7 |
9 |
Segment gross profit |
9,961 |
10,106 |
9,537 |
4 |
6 |
Other segment expenses |
–4,701 |
–4,794 |
–4,456 |
5 |
8 |
Segment profit |
5,261 |
5,311 |
5,081 |
4 |
5 |
Margins |
|||||
Cloud subscriptions and support gross margin (in %) |
52 |
53 |
53 |
–0pp |
0pp |
Gross margin (in %) |
72 |
72 |
73 |
–0pp |
–0pp |
Segment margin (in %) |
38 |
38 |
39 |
–1pp |
–1pp |
SAP Business Network |
|||||
€ millions, unless otherwise stated |
Q1–Q3 2016 |
Q1–Q3 2015 |
∆ in % |
∆ in % |
|
Actual |
Constant |
Actual |
Actual |
Constant |
|
Cloud subscriptions and support |
1,166 |
1,171 |
981 |
19 |
19 |
Software licenses |
0 |
0 |
0 |
0 |
0 |
Software support |
20 |
20 |
25 |
–19 |
–20 |
Software licenses and support |
20 |
20 |
24 |
–19 |
–19 |
Cloud and software |
1,185 |
1,191 |
1,006 |
18 |
18 |
Services |
218 |
220 |
174 |
25 |
26 |
Total segment revenue |
1,404 |
1,411 |
1,180 |
19 |
20 |
Cost of cloud subscriptions and support |
–278 |
–281 |
–238 |
17 |
18 |
Cost of software licenses and support |
0 |
0 |
–1 |
0 |
–47 |
Cost of cloud and software |
–278 |
–281 |
–238 |
17 |
18 |
Cost of services |
–177 |
–180 |
–130 |
36 |
39 |
Total cost of revenue |
–455 |
–461 |
–368 |
24 |
25 |
Segment gross profit |
949 |
950 |
812 |
17 |
17 |
Other segment expenses |
–694 |
–704 |
–584 |
19 |
21 |
Segment profit |
255 |
245 |
228 |
12 |
8 |
Margins |
|||||
Cloud subscriptions and support gross margin (in %) |
76 |
76 |
76 |
0pp |
0pp |
Gross margin (in %) |
68 |
67 |
69 |
–1pp |
–1pp |
Segment margin (in %) |
18 |
17 |
19 |
–1pp |
–2pp |
Due to rounding, numbers may not add up precisely. |
Reconciliation from Non-IFRS Numbers to IFRS Numbers |
|||||||||||
€ millions, unless otherwise stated |
Q3 2016 |
Q3 2015 |
∆ in % |
||||||||
IFRS |
Adj.1) |
Non- |
Currency |
Non-IFRS |
IFRS |
Adj.1) |
Non- |
IFRS |
Non- |
Non-IFRS |
|
Revenue Numbers |
|||||||||||
Cloud subscriptions and support |
769 |
0 |
769 |
6 |
775 |
599 |
1 |
600 |
28 |
28 |
29 |
Software licenses |
1,034 |
0 |
1,034 |
3 |
1,037 |
1,014 |
1 |
1,015 |
2 |
2 |
2 |
Software support |
2,653 |
0 |
2,653 |
13 |
2,666 |
2,509 |
0 |
2,509 |
6 |
6 |
6 |
Software licenses and support |
3,686 |
0 |
3,687 |
17 |
3,703 |
3,523 |
1 |
3,524 |
5 |
5 |
5 |
Cloud and software |
4,455 |
1 |
4,456 |
23 |
4,479 |
4,122 |
2 |
4,124 |
8 |
8 |
9 |
Services |
920 |
0 |
920 |
4 |
924 |
863 |
0 |
863 |
7 |
7 |
7 |
Total revenue |
5,375 |
1 |
5,375 |
27 |
5,402 |
4,985 |
2 |
4,987 |
8 |
8 |
8 |
Operating Expense Numbers |
|||||||||||
Cost of cloud subscriptions and support |
–333 |
63 |
–270 |
–252 |
65 |
–187 |
32 |
44 |
|||
Cost of software licenses and support |
–537 |
71 |
–465 |
–528 |
61 |
–468 |
2 |
–1 |
|||
Cost of cloud and software |
–870 |
135 |
–735 |
–780 |
126 |
–655 |
11 |
12 |
|||
Cost of services |
–776 |
45 |
–732 |
–680 |
19 |
–661 |
14 |
11 |
|||
Total cost of revenue |
–1,646 |
179 |
–1,466 |
–1,460 |
144 |
–1,316 |
13 |
11 |
|||
Gross profit |
3,729 |
180 |
3,909 |
3,525 |
147 |
3,671 |
6 |
6 |
|||
Research and development |
–766 |
86 |
–679 |
–657 |
25 |
–632 |
17 |
8 |
|||
Sales and marketing |
–1,590 |
214 |
–1,376 |
–1,269 |
77 |
–1,191 |
25 |
16 |
|||
General and administration |
–268 |
56 |
–211 |
–239 |
8 |
–230 |
12 |
–8 |
|||
Restructuring |
1 |
–1 |
0 |
–145 |
145 |
0 |
<-100 |
NA |
|||
Other operating income/expense, net |
–4 |
0 |
–4 |
–3 |
0 |
–3 |
55 |
55 |
|||
Total operating expenses |
–4,272 |
534 |
–3,738 |
–39 |
–3,777 |
–3,771 |
400 |
–3,372 |
13 |
11 |
12 |
Profit Numbers |
|||||||||||
Operating profit |
1,103 |
535 |
1,638 |
–12 |
1,625 |
1,214 |
402 |
1,616 |
–9 |
1 |
1 |
Other non-operating income/expense, net |
–43 |
0 |
–43 |
–26 |
0 |
–26 |
65 |
65 |
|||
Finance income |
32 |
0 |
32 |
102 |
0 |
102 |
–69 |
–69 |
|||
Finance costs |
–78 |
0 |
–78 |
–60 |
0 |
–60 |
30 |
30 |
|||
Financial income, net |
–46 |
0 |
–46 |
42 |
0 |
42 |
<-100 |
<-100 |
|||
Profit before tax |
1,013 |
535 |
1,548 |
1,229 |
402 |
1,631 |
–18 |
–5 |
|||
Income tax expense |
–288 |
–171 |
–459 |
–333 |
–124 |
–457 |
–14 |
0 |
|||
Profit after tax |
725 |
364 |
1,089 |
895 |
278 |
1,173 |
–19 |
–7 |
|||
Attributable to owners of parent |
730 |
364 |
1,094 |
898 |
278 |
1,176 |
–19 |
–7 |
|||
Attributable to non-controlling interests |
–5 |
0 |
–5 |
–2 |
0 |
–2 |
>100 |
>100 |
|||
Key Ratios |
|||||||||||
Operating margin (in %) |
20.5 |
30.5 |
30.1 |
24.3 |
32.4 |
–3.8pp |
–1.9pp |
–2.3pp |
|||
Effective tax rate (in %)3) |
28.4 |
29.7 |
27.1 |
28.0 |
1.3pp |
1.6pp |
|||||
Earnings per share, basic (in €) |
0.61 |
0.91 |
0.75 |
0.98 |
–19 |
–7 |
1) Adjustments in the revenue line items are for software 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, as well as restructuring expenses. |
|
2) 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, Adjustments and Full-Year Estimates". |
|
3) The difference between our IFRS and non-IFRS effective tax rate in Q3 2016 and Q3 2015 mainly results from tax effects of acquisition-related charges and share-based payment expenses. |
|
Due to rounding, numbers may not add up precisely. |
€ millions, unless otherwise stated |
Q1–Q3 2016 |
Q1–Q3 2015 |
∆ in % |
||||||||
IFRS |
Adj.1) |
Non- |
Currency |
Non-IFRS |
IFRS |
Adj.1) |
Non- |
IFRS |
Non- |
Non-IFRS |
|
Revenue Numbers |
|||||||||||
Cloud subscriptions and support |
2,166 |
2 |
2,168 |
23 |
2,191 |
1,654 |
9 |
1,664 |
31 |
30 |
32 |
Software licenses |
2,682 |
2 |
2,685 |
54 |
2,739 |
2,689 |
1 |
2,690 |
0 |
0 |
2 |
Software support |
7,815 |
0 |
7,815 |
102 |
7,917 |
7,494 |
0 |
7,494 |
4 |
4 |
6 |
Software licenses and support |
10,497 |
3 |
10,500 |
156 |
10,656 |
10,183 |
1 |
10,184 |
3 |
3 |
5 |
Cloud and software |
12,663 |
4 |
12,668 |
179 |
12,847 |
11,837 |
11 |
11,848 |
7 |
7 |
8 |
Services |
2,675 |
0 |
2,675 |
47 |
2,723 |
2,614 |
0 |
2,614 |
2 |
2 |
4 |
Total revenue |
15,339 |
4 |
15,343 |
226 |
15,569 |
14,451 |
11 |
14,462 |
6 |
6 |
8 |
Operating Expense Numbers |
|||||||||||
Cost of cloud subscriptions and support |
–930 |
181 |
–749 |
–717 |
162 |
–555 |
30 |
35 |
|||
Cost of software licenses and support |
–1,543 |
170 |
–1,373 |
–1,631 |
207 |
–1,424 |
–5 |
–4 |
|||
Cost of cloud and software |
–2,474 |
352 |
–2,122 |
–2,349 |
369 |
–1,979 |
5 |
7 |
|||
Cost of services |
–2,282 |
74 |
–2,208 |
–2,145 |
111 |
–2,034 |
6 |
9 |
|||
Total cost of revenue |
–4,756 |
426 |
–4,330 |
–4,494 |
480 |
–4,014 |
6 |
8 |
|||
Gross profit |
10,583 |
430 |
11,013 |
9,957 |
491 |
10,448 |
6 |
5 |
|||
Research and development |
–2,184 |
135 |
–2,049 |
–2,049 |
133 |
–1,917 |
7 |
7 |
|||
Sales and marketing |
–4,461 |
405 |
–4,056 |
–4,027 |
268 |
–3,759 |
11 |
8 |
|||
General and administration |
–727 |
83 |
–644 |
–766 |
60 |
–706 |
–5 |
–9 |
|||
Restructuring |
–20 |
20 |
0 |
–563 |
563 |
0 |
–96 |
NA |
|||
Other operating income/expense, net |
–5 |
0 |
–5 |
0 |
0 |
0 |
<-100 |
<-100 |
|||
Total operating expenses |
–12,154 |
1,069 |
–11,085 |
–217 |
–11,302 |
–11,899 |
1,504 |
–10,396 |
2 |
7 |
9 |
Profit Numbers |
|||||||||||
Operating profit |
3,184 |
1,073 |
4,258 |
10 |
4,268 |
2,552 |
1,514 |
4,066 |
25 |
5 |
5 |
Other non-operating income/expense, net |
–180 |
0 |
–180 |
–228 |
0 |
–228 |
–21 |
–21 |
|||
Finance income |
105 |
0 |
105 |
189 |
0 |
189 |
–44 |
–44 |
|||
Finance costs |
–210 |
0 |
–210 |
–169 |
0 |
–169 |
24 |
24 |
|||
Financial income, net |
–105 |
0 |
–105 |
20 |
0 |
20 |
<-100 |
<-100 |
|||
Profit before tax |
2,900 |
1,073 |
3,973 |
2,344 |
1,514 |
3,858 |
24 |
3 |
|||
Income tax expense |
–792 |
–350 |
–1,142 |
–567 |
–461 |
–1,027 |
40 |
11 |
|||
Profit after tax |
2,108 |
724 |
2,832 |
1,778 |
1,053 |
2,831 |
19 |
0 |
|||
Attributable to owners of parent |
2,118 |
724 |
2,842 |
1,783 |
1,053 |
2,836 |
19 |
0 |
|||
Attributable to non-controlling interests |
–10 |
0 |
–10 |
–5 |
0 |
–5 |
98 |
98 |
|||
Key Ratios |
|||||||||||
Operating margin (in %) |
20.8 |
27.8 |
27.4 |
17.7 |
28.1 |
3.1pp |
–0.4pp |
–0.7pp |
|||
Effective tax rate (in %)3) |
27.3 |
28.7 |
24.2 |
26.6 |
3.1pp |
2.1pp |
|||||
Earnings per share, basic (in €) |
1.77 |
2.37 |
1.49 |
2.37 |
19 |
0 |
1) Adjustments in the revenue line items are for software 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, as well as restructuring expenses. |
|
2) 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, Adjustments and Full-Year Estimates". |
|
3) The difference between our IFRS and non-IFRS effective tax rate in the first nine months of 2016 mainly results from tax effects of acquisition-related charges and share-based payment expenses. The difference between our IFRS and non-IFRS effective tax rate in the first nine months of 2015 mainly results from tax effects of acquisition-related charges, restructuring and share-based payment expenses. |
|
Due to rounding, numbers may not add up precisely. |
Non-IFRS Adjustments – Actuals and Estimates |
|||||
€ millions |
Estimated Amounts for |
Q3 2016 |
Q1–Q3 |
Q3 2015 |
Q1–Q3 |
Operating profit (IFRS) |
1,103 |
3,184 |
1,214 |
2,552 |
|
Revenue adjustments |
<20 |
1 |
4 |
2 |
11 |
Adjustment for acquisition-related charges |
670 to 720 |
168 |
504 |
183 |
554 |
Adjustment for share-based payment expenses |
770 to 840 |
368 |
545 |
72 |
386 |
Adjustment for restructuring |
30 to 50 |
–1 |
20 |
145 |
563 |
Operating expense adjustments |
534 |
1,069 |
400 |
1,504 |
|
Operating profit adjustments |
535 |
1,073 |
402 |
1,514 |
|
Operating profit (Non-IFRS) |
1,638 |
4,258 |
1,616 |
4,066 |
Non-IFRS Adjustments by Functional Areas |
||||||||||||
€ millions |
Q3 2016 |
Q3 2015 |
||||||||||
IFRS |
Acquisition- |
SBP1) |
Restruc- |
Non- |
IFRS |
Acquisition- |
SBP1) |
Restruc- |
Non-IFRS |
|||
Cost of cloud and software |
–870 |
98 |
36 |
0 |
–735 |
–780 |
116 |
10 |
0 |
–655 |
||
Cost of services |
–776 |
3 |
42 |
0 |
–732 |
–680 |
6 |
12 |
0 |
–661 |
||
Research and development |
–766 |
3 |
84 |
0 |
–679 |
–657 |
3 |
22 |
0 |
–632 |
||
Sales and marketing |
–1,590 |
67 |
147 |
0 |
–1,376 |
–1,269 |
57 |
21 |
0 |
–1,191 |
||
General and administration |
–268 |
–3 |
59 |
0 |
–211 |
–239 |
1 |
7 |
0 |
–230 |
||
Restructuring |
1 |
0 |
0 |
–1 |
0 |
–145 |
0 |
0 |
145 |
0 |
||
Other operating income/expense, net |
–4 |
0 |
0 |
0 |
–4 |
–3 |
0 |
0 |
0 |
–3 |
||
Total operating expenses |
–4,272 |
168 |
368 |
–1 |
–3,738 |
–3,771 |
183 |
72 |
145 |
–3,372 |
||
1) Share-based Payments |
||||||||||||
€ millions |
Q1–Q3 2016 |
Q1–Q3 2015 |
|||||||||
IFRS |
Acquisition- |
SBP1) |
Restruc- |
Non- |
IFRS |
Acquisition- |
SBP1) |
Restruc- |
Non-IFRS |
||
Cost of cloud and software |
–2,474 |
293 |
58 |
0 |
–2,122 |
–2,349 |
325 |
42 |
0 |
–1,979 |
|
Cost of services |
–2,282 |
9 |
65 |
0 |
–2,208 |
–2,145 |
48 |
63 |
0 |
–2,034 |
|
Research and development |
–2,184 |
7 |
128 |
0 |
–2,049 |
–2,049 |
34 |
102 |
0 |
–1,917 |
|
Sales and marketing |
–4,461 |
190 |
214 |
0 |
–4,056 |
–4,027 |
144 |
122 |
0 |
–3,759 |
|
General and administration |
–727 |
4 |
79 |
0 |
–644 |
–766 |
2 |
58 |
0 |
–706 |
|
Restructuring |
–20 |
0 |
0 |
20 |
0 |
–563 |
0 |
0 |
563 |
0 |
|
Other operating income/expense, net |
–5 |
0 |
0 |
0 |
–5 |
0 |
0 |
0 |
0 |
0 |
|
Total operating expenses |
–12,154 |
504 |
545 |
20 |
–11,085 |
–11,899 |
554 |
386 |
563 |
–10,396 |
|
1) Share-based payments |
|||||||||||
If not presented in a separate line item in our income statement, the restructuring expenses would break down as follows: |
||||
€ millions |
Q3 2016 |
Q1–Q3 2016 |
Q3 2015 |
Q1–Q3 2015 |
Cost of cloud and software |
0 |
2 |
4 |
64 |
Cost of services |
0 |
5 |
35 |
180 |
Research and development |
1 |
4 |
69 |
178 |
Sales and marketing |
–2 |
8 |
33 |
121 |
General and administration |
0 |
1 |
4 |
20 |
Restructuring expenses |
–1 |
20 |
145 |
563 |
Revenue by Region (IFRS and Non-IFRS) |
|||||||||||||||||||||||
€ millions |
Q3 2016 |
Q3 2015 |
∆ in % |
||||||||||||||||||||
IFRS |
Adj.1) |
Non- |
Currency |
Non-IFRS |
IFRS |
Adj.1) |
Non- |
IFRS |
Non- |
Non-IFRS |
|||||||||||||
Cloud subscriptions and support revenue by region |
|||||||||||||||||||||||
EMEA |
182 |
0 |
182 |
6 |
188 |
136 |
0 |
136 |
34 |
34 |
38 |
||||||||||||
Americas |
508 |
0 |
508 |
3 |
511 |
411 |
1 |
412 |
24 |
23 |
24 |
||||||||||||
APJ |
78 |
0 |
78 |
–2 |
76 |
52 |
0 |
52 |
50 |
50 |
46 |
||||||||||||
Cloud subscriptions and support revenue |
769 |
0 |
769 |
6 |
775 |
599 |
1 |
600 |
28 |
28 |
29 |
||||||||||||
Cloud and software revenue by region |
|||||||||||||||||||||||
EMEA |
1,942 |
0 |
1,942 |
47 |
1,989 |
1,833 |
0 |
1,834 |
6 |
6 |
8 |
||||||||||||
Americas |
1,820 |
1 |
1,821 |
8 |
1,828 |
1,675 |
2 |
1,677 |
9 |
9 |
9 |
||||||||||||
APJ |
693 |
0 |
693 |
–32 |
661 |
614 |
0 |
614 |
13 |
13 |
8 |
||||||||||||
Cloud and software revenue |
4,455 |
1 |
4,456 |
23 |
4,479 |
4,122 |
2 |
4,124 |
8 |
8 |
9 |
||||||||||||
Total revenue by region |
|||||||||||||||||||||||
Germany |
749 |
0 |
749 |
0 |
748 |
687 |
0 |
687 |
9 |
9 |
9 |
||||||||||||
Rest of EMEA |
1,567 |
0 |
1,567 |
54 |
1,620 |
1,518 |
0 |
1,518 |
3 |
3 |
7 |
||||||||||||
Total EMEA |
2,315 |
0 |
2,315 |
53 |
2,369 |
2,205 |
0 |
2,205 |
5 |
5 |
7 |
||||||||||||
United States |
1,772 |
1 |
1,773 |
4 |
1,777 |
1,662 |
2 |
1,664 |
7 |
7 |
7 |
||||||||||||
Rest of Americas |
462 |
0 |
462 |
6 |
469 |
374 |
0 |
374 |
24 |
24 |
25 |
||||||||||||
Total Americas |
2,234 |
1 |
2,235 |
11 |
2,246 |
2,036 |
2 |
2,038 |
10 |
10 |
10 |
||||||||||||
Japan |
214 |
0 |
214 |
–33 |
181 |
171 |
0 |
171 |
25 |
25 |
6 |
||||||||||||
Rest of APJ |
611 |
0 |
611 |
–4 |
607 |
572 |
0 |
572 |
7 |
7 |
6 |
||||||||||||
Total APJ |
825 |
0 |
825 |
–37 |
788 |
744 |
0 |
744 |
11 |
11 |
6 |
||||||||||||
Total revenue |
5,375 |
1 |
5,375 |
27 |
5,402 |
4,985 |
2 |
4,987 |
8 |
8 |
8 |
||||||||||||
1) 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. |
|
2) 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. |
€ millions |
Q1–Q3 2016 |
Q1–Q3 2015 |
∆ in % |
|||||||||||||||||||||
IFRS |
Adj.1) |
Non- |
Currency |
Non-IFRS |
IFRS |
Adj.1) |
Non- |
IFRS |
Non- |
Non-IFRS |
||||||||||||||
Cloud subscriptions and support revenue by region |
||||||||||||||||||||||||
EMEA |
511 |
0 |
512 |
11 |
522 |
365 |
1 |
366 |
40 |
40 |
43 |
|||||||||||||
Americas |
1,450 |
1 |
1,451 |
12 |
1,463 |
1,145 |
8 |
1,152 |
27 |
26 |
27 |
|||||||||||||
APJ |
205 |
0 |
205 |
1 |
206 |
145 |
0 |
146 |
41 |
41 |
41 |
|||||||||||||
Cloud subscriptions and support revenue |
2,166 |
2 |
2,168 |
23 |
2,191 |
1,654 |
9 |
1,664 |
31 |
30 |
32 |
|||||||||||||
Cloud and software revenue by region |
||||||||||||||||||||||||
EMEA |
5,499 |
1 |
5,499 |
144 |
5,643 |
5,145 |
1 |
5,146 |
7 |
7 |
10 |
|||||||||||||
Americas |
5,213 |
4 |
5,216 |
42 |
5,258 |
4,870 |
9 |
4,879 |
7 |
7 |
8 |
|||||||||||||
APJ |
1,952 |
0 |
1,952 |
–6 |
1,946 |
1,823 |
0 |
1,823 |
7 |
7 |
7 |
|||||||||||||
Cloud and software revenue |
12,663 |
4 |
12,668 |
179 |
12,847 |
11,837 |
11 |
11,848 |
7 |
7 |
8 |
|||||||||||||
Total revenue by region |
||||||||||||||||||||||||
Germany |
2,035 |
0 |
2,035 |
–1 |
2,034 |
1,875 |
0 |
1,875 |
9 |
9 |
8 |
|||||||||||||
Rest of EMEA |
4,597 |
1 |
4,597 |
167 |
4,764 |
4,402 |
1 |
4,403 |
4 |
4 |
8 |
|||||||||||||
Total EMEA |
6,632 |
1 |
6,632 |
166 |
6,798 |
6,277 |
1 |
6,278 |
6 |
6 |
8 |
|||||||||||||
United States |
5,116 |
4 |
5,120 |
13 |
5,133 |
4,779 |
9 |
4,788 |
7 |
7 |
7 |
|||||||||||||
Rest of Americas |
1,260 |
0 |
1,260 |
51 |
1,310 |
1,184 |
0 |
1,184 |
6 |
6 |
11 |
|||||||||||||
Total Americas |
6,376 |
4 |
6,380 |
64 |
6,444 |
5,962 |
9 |
5,971 |
7 |
7 |
8 |
|||||||||||||
Japan |
583 |
0 |
583 |
–62 |
521 |
478 |
0 |
478 |
22 |
22 |
9 |
|||||||||||||
Rest of APJ |
1,748 |
0 |
1,748 |
58 |
1,806 |
1,734 |
0 |
1,734 |
1 |
1 |
4 |
|||||||||||||
Total APJ |
2,331 |
0 |
2,331 |
–3 |
2,327 |
2,212 |
0 |
2,212 |
5 |
5 |
5 |
|||||||||||||
Total revenue |
15,339 |
4 |
15,343 |
226 |
15,569 |
14,451 |
11 |
14,462 |
6 |
6 |
8 |
|||||||||||||
1) 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. |
|
2) 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. |
Employees by Region and Functional Areas |
||||||||
30.9.2016 |
30.9.2015 |
|||||||
Full-time equivalents |
EMEA |
Americas |
APJ |
Total |
EMEA |
Americas |
APJ |
Total |
Cloud and software |
6,260 |
3,996 |
5,330 |
15,586 |
5,986 |
3,853 |
4,778 |
14,617 |
Services |
6,423 |
4,044 |
3,921 |
14,388 |
6,558 |
3,769 |
3,567 |
13,895 |
Research and development |
10,219 |
4,704 |
7,780 |
22,702 |
9,399 |
4,129 |
6,723 |
20,251 |
Sales and marketing |
8,425 |
8,861 |
4,365 |
21,651 |
7,582 |
7,611 |
3,836 |
19,029 |
General and administration |
2,578 |
1,723 |
1,012 |
5,314 |
2,494 |
1,665 |
1,019 |
5,177 |
Infrastructure |
1,552 |
785 |
447 |
2,784 |
1,493 |
789 |
392 |
2,674 |
SAP Group (September 30) |
35,458 |
24,113 |
22,855 |
82,426 |
33,512 |
21,817 |
20,315 |
75,643 |
Thereof acquisitions 1) |
37 |
68 |
0 |
105 |
0 |
0 |
0 |
0 |
SAP Group (average first nine months) |
34,552 |
23,193 |
21,809 |
79,555 |
33,466 |
21,751 |
19,487 |
74,705 |
1) Acquisitions closed between January 1 and September 30 of the respective year. |
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.
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SOURCE SAP SE
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