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

News provided by

SAP AG

Apr 19, 2013, 01:00 ET

WALLDORF, Germany, April 19, 2013 /PRNewswire/ --

  • First Quarter 2013 Non-IFRS Software and Cloud Subscription Revenue Increased 23% to €824 Million (25% at Constant Currencies)
  • First Quarter 2013 Non-IFRS Software and Software-Related Service Revenue Increased 12% to €2.94 Billion (14% at Constant Currencies)
  • 13th Consecutive Quarter of Double-Digit Growth in Non-IFRS Software and Software-Related Service Revenue
  • Exceptional Growth for SAP HANA: SAP's Flagship In-Memory Platform Tripled Software Revenue Year-Over-Year
  • Strong Cloud Momentum: Annual Cloud Revenue Run Rate Approaching €900 Million
  • First Quarter 2013 Non-IFRS Operating Profit Increased 8% to €901 Million (11% at Constant Currencies)
  • First Quarter Non-IFRS EPS Increased 18% to €0.58
  • SAP Reiterates Full Year 2013 Outlook

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

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BUSINESS HIGHLIGHTS IN THE FIRST QUARTER 2013

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

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

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

The Company sees continued strong growth in the cloud. With the most comprehensive portfolio of cloud solutions, SAP's annual cloud revenue run rate is approaching €900 million[1]. First quarter 2013 Non-IFRS cloud subscription and support revenue was €167 million, up 380% year-over-year. Non-IFRS deferred cloud subscription and support revenue[2] was €377 million as of March 31, 2013, which is a year-over-year increase of 95%. The Company's cloud subscription and support backlog[3] as of December 31, 2012 was €800 million. SAP's cloud applications total subscribers now exceed 24 million. For the Ariba segment the trailing twelve month network spend volume[4] was approximately $460 billion. More than 1 million companies are connected through the Ariba network, the world's largest Web-based business trading community.

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

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

FINANCIAL RESULTS IN DETAIL

FINANCIAL HIGHLIGHTS – First Quarter 2013


First Quarter 20131)

IFRS

Non-IFRS2)


€ million, unless otherwise stated

Q1 2013

Q1 2012

%
change

Q1 2013

Q1 2012

%
change

% change
const. curr.








Software

657

637

3

657

637

3

5

Cloud subscriptions and support

137

29

373

167

35

380

385

Software and cloud subscriptions

794

666

19

824

672

23

25

Support

2,109

1,953

8

2,113

1,954

8

10

Software and software-related service revenue

2,903

2,619

11

2,937

2,626

12

14

Total revenue

3,601

3,350

7

3,636

3,357

8

10

Total operating expenses

−2,955

−2,719

9

−2,734

−2,523

8

10

- thereof TomorrowNow litigation

0

7

−97

0

0

0

N/A

Operating profit

646

631

2

901

834

8

11

Operating margin (%)

17.9

18.8

−0.9pp

24.8

24.8

0.0pp

0.3pp

Profit after tax

520

444

17

689

583

18

Basic earnings per share (€)

0.44

0.37

19

0.58

0.49

18

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

344

120

>100

377

193

95

N/A

Number of employees (FTE)

64,598

59,420

9

N/A

N/A

N/A

N/A

1) All figures are unaudited.

2) For a detailed description of SAP's non-IFRS measures see Explanation of Non-IFRS Measures online. For a breakdown of the individual adjustments see page F6 in the appendix to this press release.

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

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

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

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

BUSINESS OUTLOOK

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

  • The Company expects full year 2013 non-IFRS software and cloud subscription revenue to increase in a range of 14% – 20% at constant currencies (2012: €5.00 billion). The full year 2013 non-IFRS cloud subscription and support revenue contributing to this growth is expected to be around €750 million at constant currencies (2012: €343 million).
  • The Company expects full-year 2013 non-IFRS software and software-related service revenue to increase in a range of 11% – 13% at constant currencies (2012: €13.25 billion).
  • The Company expects full-year 2013 non-IFRS operating profit to be in a range of €5.85 billion – €5.95 billion at constant currencies (2012: €5.21 billion).
  • The Company projects a full-year 2013 IFRS effective tax rate of 25.5% – 26.5% (2012: 26.2%) and a non-IFRS effective tax rate of 27.0% – 28.0% (2012: 27.5%).

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

For a more detailed description of all of SAP's non-IFRS measures and their limitations as well as our constant currency and free cash flow figures see Explanation of Non-IFRS Measures online.

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

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

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

About SAP
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 238,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission ("SEC"), including SAP's most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

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[1] The annual revenue run rate is the first quarter 2013 cloud division revenue multiplied by 4.

[2] Starting this quarter SAP is disclosing non-IFRS deferred cloud subscription and support revenue, which is a subset of the total non-IFRS deferred revenue number reported on the balance sheet.

[3] Cloud subscription and support backlog represents expected future cloud subscription and support revenue that is contracted but not yet invoiced and thus not recorded in deferred revenue.

[4] Network spend volume is the total value of purchase orders transacted on the Ariba Network in the trailing 12 months.



Appendix – Financial Information to Follow








FINANCIAL INFORMATION
FOR THE FIRST QUARTER 2013
(Condensed and Unaudited)


Page



Financial Statements (IFRS)

    Income Statements -Quarter

F1

    Statements of Financial Position

F2-F3

    Statements of Cash Flows

F4


Supplementary Financial Information

    Reconciliation from Non-IFRS Numbers to IFRS Numbers

F5-F6

    Non-IFRS Adjustments 

F7

    Revenue by Region

F8

Financial Statements (IFRS)

Consolidated Income Statements
For the three months ended March 31

€ millions, unless otherwise stated

Note

2013

2012

Change

in %

Software

657

637

3

Cloud subscriptions and support

137

29

373

Software and cloud subscription

794

666

19

Support

2,109

1,953

8

Software and software-related service revenue

2,903

2,619

11

Consulting

557

597

−7

Other services

142

134

6

Professional services and other service revenue

698

731

−4

Total revenue

3,601

3,350

7





Cost of software and software-related services

−604

−538

12

Cost of professional services and other services

−605

−624

−3

Total cost of revenue

−1,210

−1,162

4

Gross profit

2,391

2,188

9

Research and development

−557

−523

6

Sales and marketing

−975

−831

18

General and administration

−197

−209

−6

Restructuring

−13

0

N/A

TomorrowNow litigation

0

7

−97

Other operating income/expense, net

−3

−1

>100

Total operating expenses

−2,955

−2,719

9

Operating profit

646

631

2





Other non-operating income/expense, net


−10

−8

32

Finance income

30

24

23

Finance costs

−44

−40

11

Financial income, net

−15

−16

−8

Profit before tax

621

607

2





Income tax TomorrowNow litigation

0

−2

−95

Other income tax expense

−101

−161

−38

Income tax expense

(6)

−101

−163

−38

Profit after tax

520

444

17

Profit attributable to non-controlling interests

0

0

N/A

Profit attributable to owners of parent

520

444

17





Basic earnings per share, in €*

(7)

0.44

0.37

19

Diluted earnings per share, in €*

(7)

0.44

0.37

19

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

F1

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As at March 31, 2013, and December 31, 2012

€ millions

Notes

2013

2012

Cash and cash equivalents

4,473

2,477

Other financial assets

(8)

279

154

Trade and other receivables

(9)

3,872

3,917

Other non-financial assets

346

294

Tax assets

299

156

Total current assets

9,269

6,998

Goodwill


13,512

13,274

Intangible assets

3,168

3,234

Property, plant, and equipment

1,725

1,708

Other financial assets

(8)

531

509

Trade and other receivables

(9)

97

88

Other non-financial assets

93

68

Tax assets

185

170

Deferred tax assets

715

660

Total non-current assets

20,025

19,711

Total assets

29,294

26,710










F2

  

€ millions

Notes

2013

2012

Trade and other payables

809

870

Tax liabilities

552

511

Financial liabilities

(10)

873

802

Other non-financial liabilities

1,471

2,136

Provision TomorrowNow litigation

240

234

Other provisions

406

609

Provisions

646

843

Deferred income

(11)

3,959

1,386

Total current liabilities

8,309

6,547

Trade and other payables

45

63

Tax liabilities

394

388

Financial liabilities

(10)

4,500

4,446

Other non-financial liabilities

111

98

Provisions

382

361

Deferred tax liabilities

535

574

Deferred income

(11)

65

62

Total non-current liabilities

6,032

5,991

Total liabilities

14,341

12,538

Issued capital

1,229

1,229

Share premium

508

492

Retained earnings

14,500

13,973

Other components of equity

41

−194

Treasury shares

−1,334

−1,337

Equity attributable to owners of parent

14,944

14,163

Non-controlling interests

9

8

Total equity

(12)

14,953

14,171

Equity and liabilities

29,294

26,710











F3

CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended March 31

€ millions

2013

2012

Profit after tax

520

444

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

Depreciation and amortization

233

192

Income tax expense

101

163

Financial income, net

15

16

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

24

28

Other adjustments for non-cash items

17

−30

Decrease/increase in trade and other receivables

97

36

Decrease/increase in other assets

−81

−89

Decrease/increase in trade payables, provisions and other liabilities

−881

−688

Decrease/increase in deferred income

2,446

2,277

Interest paid

−7

−28

Interest received

15

26

Income taxes paid, net of refunds

−337

−276

Net cash flows from operating activities

2,162

2,071



Business combinations, net of cash and cash equivalents acquired

−12

−2,615

Purchase of intangible assets and property, plant, and equipment

−113

−113

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

12

13

Purchase of equity or debt instruments of other entities

−250

−478

Proceeds from sales of equity or debt instruments of other entities

143

430

Net cash flows from investing activities

−220

−2,763



Purchase of treasury shares

0

−53

Proceeds from reissuance of treasury shares

4

48

Proceeds from issuing shares (share-based payments)

0

10

Proceeds from borrowings

0

1,000

Repayments of borrowings

0

−600

Net cash flows from financing activities

4

405



Effect of foreign exchange rates on cash and cash equivalents

50

−130

Net decrease/increase in cash and cash equivalents

1,996

−417

Cash and cash equivalents at the beginning of the period

2,477

4,965

Cash and cash equivalents at the end of the period

4,473

4,548








F4

SUPPLEMENTARY FINANCIAL INFORMATION
(UNAUDITED)

RECONCILIATION FROM NON-IFRS NUMBERS TO IFRS NUMBERS
The following tables present a reconciliation from our non-IFRS numbers (including our non-IFRS at constant currency numbers) to the respective most comparable IFRS numbers. Note: Our non-IFRS numbers are not prepared under a comprehensive set of accounting rules or principles.

For the three months ended March 31

€ millions, unless otherwise stated

2013

2012

Change in %

IFRS

Adj.*

Non-IFRS*

Currency

impact**

Non-IFRS

Constant

Currency**

IFRS

Adj.*

Non-IFRS*

IFRS

Non-IFRS*

Non-IFRS

Constant

Currency**

Revenue Numbers










Software

657

0

657

11

668

637

0

637

3

3

5

Cloud subscriptions and support

137

30

167

2

169

29

6

35

373

380

385

Software and cloud subscription

794

30

824

13

837

666

6

672

19

23

25

Support

2,109

4

2,113

44

2,157

1,953

1

1,954

8

8

10

Software and software-related 
          service revenue

2,903

35

2,937

56

2,994

2,619

7

2,626

11

12

14

Consulting

557

0

557

8

565

597

0

597

−7

−7

−5

Other services

142

0

142

2

144

134

0

134

6

6

8

Professional services and other
         service revenue

698

0

698

11

709

731

0

731

−4

−4

−3

Total revenue

3,601

35

3,636

67

3,703

3,350

7

3,357

7

8

10












Operating Expense Numbers










Cost of software and software-
          related services

−604

97

−507

−538

71

−467

12

8

Cost of professional services and 
          other services

−605

28

−578

−624

30

−594

−3

−3

Total cost of revenue

−1,210

125

−1,084

−1,162

101

−1,061

4

2

Gross profit

2,391

160

2,551

2,188

108

2,296

9

11

Research and development

−557

22

−535

−523

23

−500

6

7

Sales and marketing

−975

52

−923

−831

55

−776

18

19

General and administration

−197

9

−188

−209

24

−185

−6

2

Restructuring

−13

13

0

0

0

0

N/A

0

TomorrowNow litigation

0

0

0

7

−7

0

−97

0

Other operating income/expense, 
         net

−3

0

−3

−1

0

−1

>100

>100

Total operating expenses

−2,955

221

−2,734

−40

−2,774

−2,719

196

−2,523

9

8

10












Profit Numbers










Operating profit

646

255

901

27

928

631

203

834

2

8

11

Other non-operating income/expense, net

−10

0

−10

−8

0

−8

32

32

Finance income

30

0

30

24

0

24

23

23

Finance costs

−44

0

−44

−40

1

−39

11

14

Financial income, net

−15

0

−15

−16

1

−15

−8

−1

Profit before tax

621

255

877

607

204

811

2

8

Income tax TomorrowNow litigation

0

0

0

−2

2

0

−95

N/A

Other income tax expense

−101

−86

−188

−161

−67

−228

−38

−18

Income tax expense

−101

−86

−188

−163

−65

−228

−38

−18

Profit after tax

520

169

689

444

139

583

17

18

Profit attributable to non-controlling interests

0

0

0

0

0

0

N/A

N/A

Profit attributable to owners of parent

520

169

689

444

139

583

17

18












Key Ratios












Operating margin in %

17.9

24.8

25.1

18.8

24.8

−0.9pp

0.0pp

0.3pp

Effective tax rate in %

16.3

21.4

26.9

28.1

−10.6pp

−6.7pp

Basic earnings per share, in €*

0.44

0.58

0.37

0.49

19

18












Deferred cloud subscriptions and support revenue (March 31)

344

33

377

120

72

193

>100

95

* Adjustments in the revenue line items are for support revenue, cloud subscription revenue, and other similarly recurring revenues that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges, share-based compensation expenses, restructuring expenses, and discontinued activities.


** Constant currency revenue and operating income figures are calculated by translating revenue and operating income of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS number of the previous year's respective period.


F5

NON-IFRS ADJUSTMENTS

€ millions, unless otherwise stated

01/01/ -

3/31/2013

 

01/01/ -

3/31/2012

 



Software and software-related service revenue (IFRS)

2,903

2,619

Adjustment for deferred revenue write-down

35

7

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

2,937

2,626



Operating profit (IFRS)

646

631

Revenue Adjustments (per above)

35

7

Adjustment for discontinued activities

0

−7

Adjustment for acquisition-related charges 

137

120

Adjustment for stock-based compensation expenses

70

83

Adjustment for restructuring

13

0

Operating expense adjustments

221

196

Operating profit adjustments

255

203

Operating profit (Non-IFRS)

901

834



Profit after tax  (IFRS)

520

444

Revenue adjustments (per above)

35

7

Operating profit adjustments (per above)

221

196

Financial income, net adjustments

0

1

Adjustments pre-tax

255

204

Taxes on adjustments

−86

−65

Profit after tax (Non-IFRS)

689

583

Due to rounding, numbers may not add up precisely.                                                                                                           



F6


 

REVENUE BY REGION
The following table presents our IFRS and non-IFRS revenue by region. Software Revenue by Region shows the breakdown by location of contract negotiation and by customer location, whereas Software and Cloud Subscription Revenue by Region, Software and Software-Related Service Revenue by Region, and Total Revenue by Region are based on customer location. The table also presents a reconciliation from our non-IFRS revenue (including our non-IFRS revenue at constant currency) to the respective most comparable IFRS revenue. Note: Our non-IFRS revenues are not prepared under a comprehensive set of accounting rules or principles.

Software Revenue by Location Where Contracts Were Negotiated

















For the three months ended March 31

€ millions

2013

2012

 Change in %

IFRS

Adj.*

Non-IFRS*

Currency

impact**

Non-IFRS

Constant

Currency**

IFRS

Adj.*

Non-IFRS*

IFRS

Non-IFRS*

Non-IFRS

Constant

Currency**

Software revenue by region










EMEA

298

0

298

4

302

275

0

275

8

8

10

Americas

254

0

254

3

257

239

0

239

6

6

8

APJ

105

0

105

3

108

123

0

123

−15

−15

−12

Software revenue  

657

0

657

11

668

637

0

637

3

3

5



























Revenues by Location of Customers




















For the three months ended March 31

€ millions

2013

2012

 Change in %

IFRS

Adj.*

Non-IFRS*

Currency

impact**

Non-IFRS

Constant

Currency**

IFRS

Adj.*

Non-IFRS*

IFRS

Non-IFRS*

Non-IFRS

Constant

Currency**

Software revenue by region










EMEA

300

0

300

4

304

279

0

279

8

8

9

Americas

252

0

252

3

255

236

0

236

7

7

8

APJ

105

0

105

3

108

123

0

123

−15

−15

−12

Software revenue  

657

0

657

11

668

637

0

637

3

3

5












Software and cloud subscription revenue by region










EMEA

326

0

326

5

331

289

0

289

13

13

15

Americas

356

30

386

4

390

253

6

259

41

49

51

APJ

112

0

112

4

116

125

0

125

−10

−10

−7

Software and cloud subscription revenue

794

30

824

13

837

666

6

672

19

23

25












Software and software-related service revenue by region










Germany

399

0

399

0

399

371

0

371

8

8

8

Rest of EMEA

936

0

936

14

950

862

1

863

9

8

10

Total EMEA

1,335

0

1,335

14

1,348

1,233

1

1,234

8

8

9

United States

808

35

842

5

847

692

6

698

17

21

21

Rest of Americas

307

0

307

15

322

255

0

255

20

20

26

Total Americas

1,115

35

1,150

19

1,169

946

6

952

18

21

23

Japan

134

0

134

22

156

144

0

144

−7

−7

8

Rest of APJ

319

0

319

1

320

297

0

297

7

7

8

Total APJ

453

0

453

23

476

440

0

440

3

3

8

Software and software-related service revenue

2,903

35

2,937

56

2,994

2,619

7

2,626

11

12

14












Total revenue by region










Germany

526

0

526

−1

525

517

0

517

2

2

2

Rest of EMEA

1,131

0

1,131

16

1,147

1,058

1

1,059

7

7

8

Total EMEA

1,657

0

1,657

15

1,672

1,575

1

1,576

5

5

6

United States

1,024

35

1,058

6

1,064

913

6

919

12

15

16

Rest of Americas

377

0

377

18

395

333

0

333

13

13

19

Total Americas

1,400

35

1,435

24

1,459

1,246

6

1,252

12

15

17

Japan

151

0

151

25

176

165

0

165

−8

−8

7

Rest of APJ

393

0

393

2

395

364

0

364

8

8

9

Total APJ

544

0

544

27

571

529

0

529

3

3

8

Total revenue 

3,601

35

3,636

67

3,703

3,350

7

3,357

7

8

10

























F7

* Adjustments in the revenue line items are for support revenue, cloud subscription revenue, and other similarly recurring revenues that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules.


** Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS number of the previous year's respective period.

For a more detailed description of these adjustments and their limitations as well as our constant currency figures, see our Web site www.sap.com/corporate-en/investors/newsandreports/reporting-framework.epx under "Non-IFRS Measures and Estimates."

Due to rounding, numbers may not add up precisely.

F8

SOURCE SAP AG

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