SAP Reports Best Ever Results - Full-Year 2011 Software Revenue Increases 25% at Constant Currencies to EUR 4 Billion - Non-IFRS Operating Profit EUR 4.8 Billion at Constant Currencies
- Best Ever Software Revenue Performance: Full-Year 2011 Software Revenue Increases 22% to EUR 3.97 Billion (25% at Constant Currencies)
- Exceeding Revenue Guidance: Full-Year 2011 Non-IFRS Software and Software-Related Service Revenue Increases 15% (17% at Constant Currencies)
- Exceeding Operating Profit Guidance: Full-Year 2011 Non-IFRS Operating Profit EUR 4.71 Billion (EUR 4.78 Billion at Constant Currencies), Resulting in Full-Year 2011 Non-IFRS Operating Margin Increasing by 1.1 Percentage Points at Constant Currencies to 33.1%
- Double-Digit Earnings Per Share Growth: 23% Increase in Full-Year 2011 Non-IFRS Earnings Per Share
- Record Operating Cash Flow: 29% Increase to EUR 3.78 Billion
- Strong Contribution From Innovations: SAP HANA and Mobile EUR 270 Million
WALLDORF, Germany, Jan. 25, 2012 /PRNewswire/ -- SAP AG (NYSE: SAP) today announced its preliminary financial results for the fourth quarter and full-year ended December 31, 2011.
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"SAP performed exceptionally well in 2011 clearly exceeding its guidance for revenue and profit. This record performance was driven by strong top line results with double-digit software revenue growth in all regions, resulting in year over year total revenue growth of EUR 1.7 billion and a record cash flow," said Werner Brandt, CFO of SAP. "We are well positioned to exceed our EUR 20 billion revenue target and reach a 35% operating margin in 2015."
"In an uncertain environment, we had the best year in our 40 year history and clearly outperformed the competition. We extended our leadership in enterprise applications, analytics and mobile and are reinventing the database and cloud markets," said Bill McDermott and Jim Hagemann Snabe, co-CEOs of SAP. "We have significant momentum going into 2012, as our customers continue to benefit from faster innovation, easier adoption and our unmatched industry expertise."
FINANCIAL RESULTS IN DETAIL
FINANCIAL HIGHLIGHTS – Fourth Quarter 2011 |
||||||||
Fourth Quarter 2011(1) |
||||||||
IFRS |
Non-IFRS(2) |
|||||||
EUR million, unless otherwise stated |
Q4 2011 |
Q4 2010 |
% |
Q4 2011 |
Q4 2010 |
% |
% change |
|
Software revenue |
1,744 |
1,507 |
16 |
1,744 |
1,507 |
16 |
17 |
|
Support revenue |
1,874 |
1,654 |
13 |
1,875 |
1,692 |
11 |
11 |
|
Software and software-related service revenue |
3,720 |
3,273 |
14 |
3,721 |
3,311 |
12 |
13 |
|
Total revenue |
4,498 |
4,058 |
11 |
4,499 |
4,096 |
10 |
10 |
|
Total operating expenses |
−2,832 |
−3,514 |
−19 |
−2,718 |
−2,474 |
10 |
10 |
|
- thereof TomorrowNow litigation |
6 |
−934 |
<-100 |
N/A |
N/A |
N/A |
N/A |
|
Operating profit |
1,666 |
544 |
206 |
1,781 |
1,622 |
10 |
10 |
|
Operating margin (%) |
37.0 |
13.4 |
23.6pp |
39.6 |
39.6 |
0 |
0.1pp |
|
Profit after tax |
1,199 |
434 |
176 |
1,281 |
1,109 |
16 |
||
Basic earnings per share (EUR) |
1.01 |
0.37 |
173 |
1.08 |
0.93 |
16 |
||
Number of employees (FTE) |
55,765 |
53,513 |
4 |
N/A |
N/A |
N/A |
N/A |
|
(1) All figures are preliminary and unaudited. (2) Adjustments in the revenue line items are for the support revenue that would have been recognized had the acquired entities 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 and discontinued activities. (3) Constant currency revenue and operating profit 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. |
||||||||
Revenue – Fourth Quarter 2011
- IFRS software revenue was EUR 1.74 billion (2010: EUR 1.51 billion), an increase of 16% (17% at constant currencies).
- IFRS software and software-related service revenue was EUR 3.72 billion (2010: EUR 3.27 billion), an increase of 14%. Non-IFRS software and software-related service revenue was EUR 3.72 billion (2010: EUR 3.31 billion), an increase of 12% (13% at constant currencies).
- IFRS total revenue was EUR 4.50 billion (2010: EUR 4.06 billion), an increase of 11%. Non-IFRS total revenue was EUR 4.50 billion (2010: EUR 4.10 billion), an increase of 10% (10% at constant currencies).
Fourth Quarter 2011 non-IFRS software and software-related service revenue and total revenue exclude a deferred support revenue write-down from acquisitions of EUR 1 million (2010: EUR 38 million).
Profit – Fourth Quarter 2011
- IFRS operating profit was EUR 1.67 billion (2010: EUR 544 million), an increase of 206%. Non-IFRS operating profit was EUR 1.78 billion (2010: EUR 1.62 billion), an increase of 10% (10% at constant currencies).
- IFRS operating margin was 37.0% (2010: 13.4%), an increase of 23.6 percentage points. Non-IFRS operating margin was 39.6% (2010: 39.6%), or 39.7% at constant currencies, an increase of 0.1 percentage points at constant currencies.
- IFRS profit after tax was EUR 1.20 billion (2010: EUR 434 million), an increase of 176%. Non-IFRS profit after tax was EUR 1.28 billion (2010: EUR 1.11 billion), an increase of 16%. IFRS basic earnings per share was EUR 1.01 (2010: EUR 0.37), an increase of 173%. Non-IFRS basic earnings per share was EUR 1.08 (2010: EUR 0.93), an increase of 16%.
- The IFRS and non-IFRS effective tax rates in the fourth quarter of 2011 were 25.9% (2010: 4.0%) and 26.1% (2010: 27.5%), respectively.
- Fourth quarter 2011 operating profit and operating margin were impacted by SAP's continued investments in go-to-market activities intended to capture future growth opportunities, resulting in a sequential increase in headcount in sales and marketing by almost 500 full-time-equivalents (FTEs). Total headcount for the Group grew in the fourth quarter by almost 1,200 FTEs compared to the previous quarter.
- Fourth quarter 2010 IFRS operating profit and operating margin were negatively impacted by the provision for the TomorrowNow litigation while there was no such effect on SAP's non-IFRS operating profit and operating margin.
Fourth Quarter 2011 non-IFRS operating profit excludes a deferred support revenue write-down from acquisitions of EUR 1 million, acquisition-related charges of EUR 115 million, profit from discontinued activities of EUR 6 million, share-based compensation expenses of EUR 3 million and restructuring expenses of EUR 2 million (2010: EUR 38 million, EUR 99 million, expenses of EUR 935 million, EUR 9 million and -EUR 2 million). Fourth Quarter 2011 non-IFRS profit after tax and non-IFRS basic earnings per share exclude a deferred support revenue write-down from acquisitions of EUR 1 million, acquisition-related charges of EUR 78 million, profit from discontinued activities of EUR 2 million, share-based compensation expenses of EUR 4 million and restructuring expenses of EUR 1 million (2010: EUR 25 million, EUR 70 million, expenses of EUR 575 million, EUR 6 million and -EUR 1 million) net of tax.
FINANCIAL HIGHLIGHTS – Full-Year 2011
Full-Year 2011(1) |
||||||||
IFRS |
Non-IFRS(2) |
|||||||
EUR million, unless otherwise stated |
FY 2011 |
FY 2010 |
% |
FY 2011 |
FY 2010 |
% |
% change |
|
Software revenue |
3,970 |
3,265 |
22 |
3,970 |
3,265 |
22 |
25 |
|
Support revenue |
6,967 |
6,133 |
14 |
6,994 |
6,207 |
13 |
14 |
|
Software and software-related service revenue |
11,318 |
9,794 |
16 |
11,345 |
9,868 |
15 |
17 |
|
Total revenue |
14,232 |
12,464 |
14 |
14,259 |
12,538 |
14 |
15 |
|
Total operating expenses |
−9,353 |
−9,873 |
−5 |
−9,549 |
−8,531 |
12 |
13 |
|
- thereof TomorrowNow litigation |
717 |
−981 |
<-100 |
N/A |
N/A |
N/A |
N/A |
|
Operating profit |
4,879 |
2,591 |
88 |
4,710 |
4,007 |
18 |
19 |
|
Operating margin (%) |
34.3 |
20.8 |
13.5pp |
33.0 |
32.0 |
1.0pp |
1.1pp |
|
Profit after tax |
3,441 |
1,813 |
90 |
3,371 |
2,738 |
23 |
||
Basic earnings per share (EUR) |
2.89 |
1.52 |
90 |
2.83 |
2.30 |
23 |
||
Number of employees (FTE) |
55,765 |
53,513 |
4 |
N/A |
N/A |
N/A |
N/A |
|
(1) All figures are preliminary and unaudited. (2) Adjustments in the revenue line items are for the support revenue that would have been recognized had the acquired entities 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 and discontinued activities. (3) Constant currency revenue and operating profit 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. |
||||||||
Revenue – Full-Year 2011
- IFRS software revenue was EUR 3.97 billion (2010: EUR 3.27 billion), an increase of 22% (25% at constant currencies).
- IFRS software and software-related service revenue was EUR 11.32 billion (2010: EUR 9.79 billion), an increase of 16%. Non-IFRS software and software-related service revenue was EUR 11.35 billion (2010: EUR 9.87 billion), an increase of 15% (17% at constant currencies).
- IFRS total revenue was EUR 14.23 billion (2010: EUR 12.46 billion), an increase of 14%. Non-IFRS total revenue was EUR 14.26 billion (2010: EUR 12.54 billion), an increase of 14% (15% at constant currencies).
Full-Year 2011 Non-IFRS software and software-related service revenue as well as total revenue exclude a deferred support revenue write-down from acquisitions of EUR 27 million (2010: EUR 74 million).
Profit – Full-Year 2011
- IFRS operating profit was EUR 4.88 billion (2010: EUR 2.59 billion), an increase of 88%. Non-IFRS operating profit was EUR 4.71 billion (2010: EUR 4.01 billion), an increase of 18% (19% at constant currencies).
- IFRS operating margin was 34.3% (2010: 20.8%), an increase of 13.5 percentage points. Non-IFRS operating margin was 33.0% (2010: 32.0%), or 33.1% at constant currencies, an increase of 1.0 percentage points (1.1 percentage points at constant currencies).
- IFRS profit after tax was EUR 3.44 billion (2010: EUR 1.81 billion), an increase of 90%. Non-IFRS profit after tax was EUR 3.37 billion (2010: EUR 2.74 billion), an increase of 23%. IFRS basic earnings per share was EUR 2.89 (2010: EUR 1.52), an increase of 90%. Non-IFRS basic earnings per share was EUR 2.83 (2010: EUR 2.30), an increase of 23%.
- Full year 2011 IFRS operating profit and operating margin numbers were favorably impacted by the re-measurement of the TomorrowNow litigation provision while full year 2010 IFRS operating profit and operating margin were negatively impacted by the TomorrowNow litigation provision. The provision in 2010 as well as the re-measurement in 2011 did not affect SAP's non-IFRS operating profit and operating margin results.
- The IFRS and non-IFRS effective tax rates in the first twelve months 2011 were 27.8% (2010: 22.5%) and 26.5% (2010: 27.2%), respectively.
- The main reason for the significant year over year difference is the change in the measurement of the TomorrowNow litigation provision. While 2010 saw a tax rate reduction of almost 5 percentage points as a result of the significant increase of the TomorrowNow litigation provision, 2011 experienced the tax rate increase resulting from the reduction of the same provision. However, this increase was offset by tax effects related to intercompany financing.
- The 2011 effective tax rate based on Non-IFRS profit was 26.5% and thus below the respective rate in 2010 (27.2%). The main reasons for the decrease were tax effects related to intercompany financing.
Full-Year 2011 non-IFRS operating profit excludes a deferred support revenue write-down from acquisitions of EUR 27 million, acquisition-related charges of EUR 448 million, profit from discontinued activities of EUR 717 million, share-based compensation expenses of EUR 69 million and restructuring expenses of EUR 4 million (2010: EUR 74 million, EUR 304 million, expenses of EUR 983 million, EUR 58 million and -EUR 3 million). Full-Year 2011 non-IFRS profit after tax and non-IFRS basic earnings per share exclude a deferred support revenue write-down from acquisitions of EUR 18 million, acquisition-related charges of EUR 303 million, profit from discontinued activities of EUR 444 million, share-based compensation expenses of EUR 51 million and restructuring expenses of EUR 2 million (2010: EUR 50 million, EUR 221 million, expenses of EUR 613 million, EUR 42 million and -EUR 1 million) net of tax.
Cash Flow – Full-Year 2011
Operating cash flow was EUR 3.78 billion (2010: EUR 2.92 billion), an increase of 29%. Free cash flow was EUR 3.33 billion (2010: EUR 2.59 billion), an increase of 29%. Free cash flow was 23% of total revenue (2010: 21%). At December 31, 2011, SAP had a total group liquidity of EUR 5.60 billion (December 31, 2010: EUR 3.53 billion), which includes cash and cash equivalents and short term investments. Net liquidity at December 31, 2011 was EUR 1.64 billion compared to -EUR 850 million at December 31, 2010. This increase in net liquidity was mainly due to the increased operating cash flow in the fiscal year 2011.
SuccessFactors
On December 3, 2011, SAP entered into a merger agreement with SuccessFactors, Inc., the market-leading provider of cloud-based human capital management solutions. A successful closing of the acquisition will add SuccessFactors' team and technology to SAP's powerful cloud assets, significantly accelerating SAP's momentum as a provider of cloud applications, platforms and infrastructure. Currently, we expect the acquisition to close in the first quarter of 2012.
Change in Income Statement Presentation
In light of SAP's strong focus on the cloud market, SAP intends to realign, for periods starting on or after January 1, 2012, its income statement to provide additional transparency on cloud-related revenue streams and revenues from multi-year licensing arrangements (formerly known as software subscriptions):
- 'Cloud subscriptions and support' will no longer be included in the line item 'Subscription and other software-related service revenue' but will be presented as a separate line item within 'Software and software-related service revenue'
- Revenues from multi-year licensing arrangements and all other revenues so far included in the 'Subscription and other software-related service revenue' line item will be split into their software portion and support portion with these portions being allocated to the 'Software revenue' and 'Support revenue' line items respectively.
This reclassification only affects sub items of 'Software and software-related service revenue'. The total of 'Software and software-related service revenue' and consequently total revenue as well as profit numbers and operating margin figures will not be affected by this change. The financial section of this press release also includes the preliminary full year 2011 income statement and the reconciliations from non-IFRS numbers to IFRS numbers under the new format.
In addition, for periods starting on or after January 1, 2012, SAP has modified the definition of its non-IFRS revenue and profit measures. See the section below called Adjustment to Definition of Non-IFRS Revenue and Profit Measures for additional details.
Business Outlook
Based on the expectation of a successful closing of the SuccessFactors acquisition in the first quarter of 2012, SAP is providing the following outlook for the full-year 2012:
- The Company expects full-year 2012 non-IFRS software and software-related service revenue to increase in a range of 10% – 12% at constant currencies (2011: EUR 11.35 billion). This includes a contribution of up to 2 percentage points from SuccessFactors' business.
- The Company expects full-year 2012 non-IFRS operating profit to be in a range of EUR 5.05 billion – EUR 5.25 billion at constant currencies (2011: EUR 4.71 billion). Full-year 2012 non-IFRS operating profit excluding SuccessFactors is expected to be in a similar range.
- The Company projects a full-year 2012 IFRS effective tax rate of 26.5% – 27.5% (2011: 27.8%) and a non-IFRS effective tax rate of 27.0% – 28.0% (2011: 26.5%).
Major Customer Wins
In the fourth quarter of 2011, SAP closed major contracts in key regions:
EMEA
Deutsche Lufthansa AG, Bundesrechenzentrum GmbH, Lidl, Clariant International Ltd., FIAT, Vodafone
Americas
U.S. Department of Agriculture, ConAgra Foods, Inc., Ace Hardware Corporation, Delta Air Lines, Inc., Banco de Galicia y Buenos Aires S.A., Petroleos Mexicanos
Asia Pacific/Japan
Yonghui Superstores Co. Ltd., Tingyi Holding Corporation, Department of Finance and Deregulation, Usha International Ltd., Powercor, Sharp Corporation
HANA
Gonhermex, S.A. de C.V., Grupo Gonher, Schukat electronic Vertriebs GmbH, EBY-Brown Company LLC, Newell Rubbermaid, Inc., Coinstar, Inc., T-Mobile USA, Inc.
SAP Business ByDesign
EC Bioenergie GmbH, DESANO Pharmacy, Innogence Limited, Matchcode, metaio, Schaltbau Holding AG, Schukat electronic Vertriebs GmbH
Adjustment to Definition of Non-IFRS Revenue and Profit Measures
In light of SAP's strong focus on the cloud market and considering the planned acquisition of SuccessFactors, SAP widens the range of revenues for which acquisition-related deferred revenue write-downs are adjusted in determining SAP's non-IFRS revenue and profit numbers. SAP continues to adjust for deferred revenue write-downs, i.e. for revenues that would have been recognized had the acquired entities remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. However, in the definitions of SAP's non-IFRS measures used through 2011, such adjustments for deferred revenue write downs were limited to support revenues. From 2012 onwards, SAP will additionally make such deferred revenue write -down adjustments for cloud subscription revenues and other similarly recurring revenues.
All other non-IFRS measures will remain unchanged. Since the deferred revenue write-down adjustments for recurring revenues other than support revenue from acquisitions that were executed through 2011 were immaterial, SAP does not restate prior period non-IFRS measures to align with the new definition.
For a more detailed description of all of SAP's non-IFRS adjustments and their limitations as well as our constant currency and free cash flow figures see Explanations of Non-IFRS Measures online (www.sap.com/investor).
Additional Information
Fourth Quarter and year-to-date 2011 revenue, profit and cash flow figures include the revenue, profits and cash flows from Sybase. For the prior-year periods those numbers were only included since the acquisition (July 26, 2010).
In 2011, SAP re-measured the provision recorded for the TomorrowNow litigation following the motion granted by the judge on the original jury verdict. The judge's decision vacated the original verdict of $1.3 billion, but gave Oracle the choice of accepting $272 million or seeking a new trial. The deadline for Oracle to make that choice depended on the outcome and timing of a ruling on Oracle's motion for an early appeal. The early appeal was denied on January 6, 2012, and Oracle now has the choice to accept the reduced damages of $272 million or seek a new trial to determine damages.
The re-measurement of the provision additionally reflects currency exchange rate changes and changes in the estimate of related legal expenses. While the resulting re-measurement of the TomorrowNow litigation provision favorably impacted SAP's fiscal year 2011 IFRS operating profit and operating margin it did not have an effect on SAP's fiscal year 2011 non-IFRS operating profit and operating margin.
2011 Annual Report
SAP's 2011 Annual Report to Shareholders and 2011 Annual Report on Form 20-F are scheduled to be published on March 23, 2012, and will be available for download at www.sap.com/investor.
Webcast
SAP senior management will host a press conference in Frankfurt 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.
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 183,000 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.
© 2012 SAP AG. All rights reserved.
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Appendix – Financial Information to Follow |
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FINANCIAL INFORMATION FOR THE FOURTH QUARTER 2011 (Condensed and Unaudited) |
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Page |
||||
Financial Statements (IFRS) |
||||
Income Statements – Quarter |
F1 |
|||
Income Statements – Twelve Months |
F2 |
|||
Statements of Financial Position |
F3 |
|||
Statements of Cash Flows |
F5 |
|||
Supplementary Financial Information |
||||
Reconciliations from Non-IFRS Numbers to IFRS Numbers |
F6 to F7 |
|||
Revenue by Region |
F8 to F9 |
|||
New Income Statement Format–Consolidated Income Statements |
F10 |
|||
New Income Statement Format–Reconciliations from Non-IFRS Numbers to IFRS Numbers |
F11 |
|||
Financial Statements (IFRS) CONSOLIDATED INCOME STATEMENT for the three months ended December 31 (Preliminary and Unaudited) |
||||
EUR millions, unless otherwise stated |
2011 |
2010 |
Change in % |
|
Software revenue |
1,744 |
1,507 |
16 |
|
Support revenue |
1,874 |
1,654 |
13 |
|
Subscription and other software-related service revenue |
102 |
112 |
−9 |
|
Software and software-related service revenue |
3,720 |
3,273 |
14 |
|
Consulting revenue |
615 |
625 |
−2 |
|
Other service revenue |
163 |
160 |
2 |
|
Professional services and other service revenue |
778 |
785 |
−1 |
|
Total revenue |
4,498 |
4,058 |
11 |
|
Cost of software and software-related services |
−607 |
−541 |
12 |
|
Cost of professional services and other services |
−560 |
−593 |
−6 |
|
Research and development |
−537 |
−487 |
10 |
|
Sales and marketing |
−940 |
−788 |
19 |
|
General and administration |
−203 |
−175 |
16 |
|
Restructuring |
−2 |
2 |
<-100 |
|
TomorrowNow litigation |
6 |
−934 |
<-100 |
|
Other operating income/expense, net |
11 |
2 |
>100 |
|
Total operating expenses |
−2,832 |
−3,514 |
−19 |
|
Operating profit |
1,666 |
544 |
206 |
|
Other non-operating income/expense, net |
−45 |
−50 |
−10 |
|
Finance income |
46 |
21 |
>100 |
|
Finance Cost TomorrowNow litigation |
1 |
−12 |
<-100 |
|
Other finance costs |
−49 |
−51 |
−4 |
|
Finance costs |
−48 |
−63 |
−24 |
|
Financial income, net |
−2 |
−42 |
−95 |
|
Profit before tax |
1,619 |
452 |
258 |
|
Income tax TomorrowNow litigation |
−5 |
359 |
<-100 |
|
Other income tax expense |
−415 |
−377 |
10 |
|
Income tax expense |
−420 |
−18 |
2,233 |
|
Profit after tax |
1,199 |
434 |
176 |
|
Profit attributable to non-controlling interests |
0 |
0 |
0 |
|
Profit attributable to owners of parent |
1,199 |
434 |
176 |
|
Basic earnings per share, in EUR* |
1.01 |
0.37 |
173 |
|
Diluted earnings per share, in EUR* |
1.01 |
0.37 |
173 |
|
* for the three months ended December 31, 2011 and 2010 the weighted average number of shares were 1,190 million (Diluted: 1,190 million) and 1,188 million (Diluted: 1,188 million), respectively (treasury stock excluded). |
||||
CONSOLIDATED INCOME STATEMENT for the twelve months ended December 31 (Preliminary and Unaudited) |
||||
EUR millions, unless otherwise stated |
2011 |
2010 |
Change in % |
|
Software revenue |
3,970 |
3,265 |
22 |
|
Support revenue |
6,967 |
6,133 |
14 |
|
Subscription and other software-related service revenue |
381 |
396 |
−4 |
|
Software and software-related service revenue |
11,318 |
9,794 |
16 |
|
Consulting revenue |
2,341 |
2,197 |
7 |
|
Other service revenue |
573 |
473 |
21 |
|
Professional services and other service revenue |
2,914 |
2,670 |
9 |
|
Total revenue |
14,232 |
12,464 |
14 |
|
Cost of software and software-related services |
−2,111 |
−1,823 |
16 |
|
Cost of professional services and other services |
−2,232 |
−2,071 |
8 |
|
Research and development |
−1,939 |
−1,729 |
12 |
|
Sales and marketing |
−3,080 |
−2,645 |
16 |
|
General and administration |
−718 |
−636 |
13 |
|
Restructuring |
−4 |
3 |
<-100 |
|
TomorrowNow litigation |
717 |
−981 |
<-100 |
|
Other operating income/expense, net |
14 |
9 |
56 |
|
Total operating expenses |
−9,353 |
−9,873 |
−5 |
|
Operating profit |
4,879 |
2,591 |
88 |
|
Other non-operating income/expense, net |
−79 |
−186 |
−58 |
|
Finance income |
123 |
73 |
68 |
|
Finance costs TomorrowNow litigation |
8 |
−12 |
<-100 |
|
Other finance costs |
−168 |
−128 |
31 |
|
Finance costs |
−160 |
−140 |
14 |
|
Financial income, net |
−37 |
−67 |
−45 |
|
Profit before tax |
4,763 |
2,338 |
104 |
|
Income tax TomorrowNow litigation |
−281 |
377 |
<-100 |
|
Other income tax expense |
−1,041 |
−902 |
15 |
|
Income tax expense |
−1,322 |
−525 |
152 |
|
Profit after tax |
3,441 |
1,813 |
90 |
|
Profit attributable to non-controlling interests |
1 |
2 |
−50 |
|
Profit attributable to owners of parent |
3,440 |
1,811 |
90 |
|
Basic earnings per share, in EUR* |
2.89 |
1.52 |
90 |
|
Diluted earnings per share, in EUR* |
2.89 |
1.52 |
90 |
|
* for the twelve months ended December 31, 2011 and 2010 the weighted average number of shares were 1,189 million (Diluted: 1,190 million) and 1,188 million (Diluted: 1,189 million), respectively (treasury stock excluded). |
||||
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION as at December 31, 2011 and December 31, 2010 (Preliminary and Unaudited) |
|||
EUR millions |
2011 |
2010 |
|
Cash and cash equivalents |
4,965 |
3,518 |
|
Other financial assets |
816 |
158 |
|
Trade and other receivables |
3,494 |
3,099 |
|
Other non-financial assets |
205 |
181 |
|
Tax assets |
214 |
187 |
|
Total current assets |
9,694 |
7,143 |
|
Goodwill |
8,709 |
8,428 |
|
Intangible assets |
2,024 |
2,376 |
|
Property, plant, and equipment |
1,551 |
1,449 |
|
Other financial assets |
538 |
475 |
|
Trade and other receivables |
84 |
78 |
|
Other non-financial assets |
39 |
31 |
|
Tax assets |
146 |
122 |
|
Deferred tax assets |
466 |
737 |
|
Total non-current assets |
13,557 |
13,696 |
|
Total assets |
23,251 |
20,839 |
|
EUR millions |
2011 |
2010 |
|
Trade and other payables |
979 |
923 |
|
Tax liabilities |
379 |
164 |
|
Financial liabilities |
1,331 |
142 |
|
Other non-financial liabilities |
1,994 |
1,726 |
|
Provision TomorrowNow litigation |
231 |
997 |
|
Other provisions |
315 |
290 |
|
Provisions |
546 |
1,287 |
|
Deferred income |
1,048 |
911 |
|
Total current liabilities |
6,277 |
5,153 |
|
Trade and other payables |
43 |
30 |
|
Tax liabilities |
410 |
369 |
|
Financial liabilities |
2,925 |
4,449 |
|
Other non-financial liabilities |
91 |
85 |
|
Provisions |
273 |
292 |
|
Deferred tax liabilities |
477 |
574 |
|
Deferred income |
44 |
63 |
|
Total non-current liabilities |
4,263 |
5,862 |
|
Total liabilities |
10,540 |
11,015 |
|
Issued capital |
1,228 |
1,227 |
|
Share premium |
421 |
337 |
|
Retained earnings |
12,468 |
9,767 |
|
Other components of equity |
−37 |
−142 |
|
Treasury shares |
−1,377 |
−1,382 |
|
Equity attributable to owners of parent |
12,703 |
9,807 |
|
Non-controlling interests |
8 |
17 |
|
Total equity |
12,711 |
9,824 |
|
Equity and liabilities |
23,251 |
20,839 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS for the twelve months ended December 31 (Preliminary and Unaudited) |
|||
EUR millions |
2011 |
2010 |
|
Profit after tax |
3,441 |
1,813 |
|
Adjustments to reconcile profit after taxes to net cash provided by operating activities: |
|||
Depreciation and amortization |
724 |
534 |
|
Income tax expense |
1,322 |
525 |
|
Financial income, net |
37 |
67 |
|
Decrease/increase in sales and bad debt allowances on trade receivables |
−18 |
−49 |
|
Other adjustments for non-cash items |
17 |
29 |
|
Decrease/increase in trade receivables |
−428 |
−123 |
|
Decrease/increase in other assets |
−76 |
−122 |
|
Decrease/increase in trade payables, provisions and other liabilities |
−335 |
1,116 |
|
Decrease/increase in deferred income |
124 |
66 |
|
Cash outflows due to TomorrowNow litigation |
−53 |
−102 |
|
Interest paid |
−139 |
−66 |
|
Interest received |
92 |
52 |
|
Income taxes paid, net of refunds |
−932 |
−818 |
|
Net cash flows from operating activities |
3,776 |
2,922 |
|
Business combinations, net of cash and cash equivalents acquired |
−188 |
−4,194 |
|
Purchase of intangible assets and property, plant and equipment |
−445 |
−334 |
|
Proceeds from sales of intangible assets or property, plant, and equipment |
55 |
44 |
|
Purchase of equity or debt instruments of other entities |
−2,045 |
−842 |
|
Proceeds from sales of equity or debt instruments of other entities |
1,398 |
1,332 |
|
Net cash flows from investing activities |
−1,225 |
−3,994 |
|
Purchase of non-controlling interests |
−28 |
0 |
|
Dividends paid |
−713 |
−594 |
|
Purchase of treasury shares |
−246 |
−220 |
|
Proceeds from reissuance of treasury shares |
252 |
127 |
|
Proceeds from issuing shares (share-based compensation) |
46 |
23 |
|
Proceeds from borrowings |
519 |
5,380 |
|
Repayments of borrowings |
−1,005 |
−2,196 |
|
Net cash flows from financing activities |
−1,175 |
2,520 |
|
Effect of foreign exchange rates on cash and cash equivalents |
71 |
186 |
|
Net decrease/increase in cash and cash equivalents |
1,447 |
1,634 |
|
Cash and cash equivalents at the beginning of the period |
3,518 |
1,884 |
|
Cash and cash equivalents at the end of the period |
4,965 |
3,518 |
|
Supplementary Financial Information RECONCILIATIONS FROM NON-IFRS NUMBERS TO IFRS NUMBERS (Preliminary and Unaudited) The following table presents 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. |
||||||||||||
Three months ended December 31 |
||||||||||||
EUR millions, unless otherwise stated |
2011 |
2010 |
Change in % |
|||||||||
IFRS |
Adj.* |
Non- |
Currency |
Non-IFRS |
IFRS |
Adj.* |
Non- |
IFRS |
Non- |
Non-IFRS |
||
Revenue Numbers |
||||||||||||
Software revenue |
1,744 |
0 |
1,744 |
17 |
1,761 |
1,507 |
0 |
1,507 |
16 |
16 |
17 |
|
Support revenue |
1,874 |
1 |
1,875 |
−3 |
1,872 |
1,654 |
38 |
1,692 |
13 |
11 |
11 |
|
Subscription and other software-related service revenue |
102 |
0 |
102 |
−1 |
101 |
112 |
0 |
112 |
−9 |
−9 |
−10 |
|
Software and software-related service revenue |
3,720 |
1 |
3,721 |
13 |
3,734 |
3,273 |
38 |
3,311 |
14 |
12 |
13 |
|
Consulting revenue |
615 |
0 |
615 |
1 |
616 |
625 |
0 |
625 |
−2 |
−2 |
−1 |
|
Other service revenue |
163 |
0 |
163 |
1 |
164 |
160 |
0 |
160 |
2 |
2 |
3 |
|
Professional services and other service revenue |
778 |
0 |
778 |
2 |
780 |
785 |
0 |
785 |
−1 |
−1 |
−1 |
|
Total revenue |
4,498 |
1 |
4,499 |
15 |
4,514 |
4,058 |
38 |
4,096 |
11 |
10 |
10 |
|
Operating Expense Numbers |
||||||||||||
Cost of software and software-related services |
−607 |
69 |
−538 |
−541 |
64 |
−477 |
12 |
13 |
||||
Cost of professional services and other services |
−560 |
5 |
−555 |
−593 |
5 |
−588 |
−6 |
−6 |
||||
Research and development |
−537 |
5 |
−532 |
−487 |
0 |
−487 |
10 |
9 |
||||
Sales and marketing |
−940 |
32 |
−908 |
−788 |
34 |
−754 |
19 |
20 |
||||
General and administration |
−203 |
7 |
−196 |
−175 |
5 |
−170 |
16 |
15 |
||||
Restructuring |
−2 |
2 |
0 |
2 |
−2 |
0 |
<-100 |
0 |
||||
TomorrowNow litigation |
6 |
−6 |
0 |
−934 |
934 |
0 |
<-100 |
0 |
||||
Other operating income/expense, net |
11 |
0 |
11 |
2 |
0 |
2 |
>100 |
>100 |
||||
Total operating expenses |
−2,832 |
114 |
−2,718 |
−5 |
−2,723 |
−3,514 |
1,041 |
−2,474 |
−19 |
10 |
10 |
|
Profit Numbers |
||||||||||||
Operating profit |
1,666 |
115 |
1,781 |
10 |
1,791 |
544 |
1,079 |
1,622 |
206 |
10 |
10 |
|
Other non-operating income/expense, net |
−45 |
0 |
−45 |
−50 |
−14 |
−64 |
−10 |
−30 |
||||
Finance income |
46 |
0 |
46 |
21 |
0 |
21 |
>100 |
>100 |
||||
Finance Cost TomorrowNow litigation |
1 |
−1 |
0 |
−12 |
12 |
0 |
<-100 |
0 |
||||
Other finance costs |
−49 |
0 |
−49 |
−51 |
0 |
−51 |
−4 |
−4 |
||||
Finance costs |
−48 |
−1 |
−49 |
−63 |
12 |
−51 |
−24 |
−4 |
||||
Financial income, net |
−2 |
−1 |
−3 |
−42 |
12 |
−30 |
−95 |
−90 |
||||
Profit before tax |
1,619 |
114 |
1,733 |
452 |
1,077 |
1,529 |
258 |
13 |
||||
Income tax TomorrowNow litigation |
−5 |
5 |
0 |
359 |
−359 |
0 |
<-100 |
0 |
||||
Other income tax expense |
−415 |
−37 |
−452 |
−377 |
−43 |
−420 |
10 |
8 |
||||
Income tax expense |
−420 |
−32 |
−452 |
−18 |
−402 |
−420 |
2,233 |
8 |
||||
Profit after tax |
1,199 |
82 |
1,281 |
434 |
675 |
1,109 |
176 |
16 |
||||
Profit attributable to non-controlling interests |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
||||
Profit attributable to owners of parent |
1,199 |
82 |
1,281 |
434 |
675 |
1,109 |
176 |
16 |
||||
Key Ratios |
||||||||||||
Operating margin in % |
37.0 |
39.6 |
39.7 |
13.4 |
39.6 |
23.6pp |
0 |
0.1pp |
||||
Effective tax rate in % |
25.9 |
26.1 |
4.0 |
27.5 |
21.9pp |
−1.4pp |
||||||
Basic earnings per share, in EUR* |
1.01 |
1.08 |
0.37 |
0.93 |
173 |
16 |
||||||
Twelve months ended December 31 |
||||||||||||
EUR millions, unless otherwise stated |
2011 |
2010 |
Change in % |
|||||||||
IFRS |
Adj.* |
Non- |
Currency |
Non-IFRS |
IFRS |
Adj.* |
Non- |
IFRS |
Non- |
Non-IFRS |
||
Revenue Numbers |
||||||||||||
Software revenue |
3,970 |
0 |
3,970 |
96 |
4,066 |
3,265 |
0 |
3,265 |
22 |
22 |
25 |
|
Support revenue |
6,967 |
27 |
6,994 |
58 |
7,052 |
6,133 |
74 |
6,207 |
14 |
13 |
14 |
|
Subscription and other software-related service revenue |
381 |
0 |
381 |
−1 |
380 |
396 |
0 |
396 |
−4 |
−4 |
−4 |
|
Software and software-related service revenue |
11,318 |
27 |
11,345 |
153 |
11,498 |
9,794 |
74 |
9,868 |
16 |
15 |
17 |
|
Consulting revenue |
2,341 |
0 |
2,341 |
35 |
2,376 |
2,197 |
0 |
2,197 |
7 |
7 |
8 |
|
Other service revenue |
573 |
0 |
573 |
8 |
581 |
473 |
0 |
473 |
21 |
21 |
23 |
|
Professional services and other service revenue |
2,914 |
0 |
2,914 |
43 |
2,957 |
2,670 |
0 |
2,670 |
9 |
9 |
11 |
|
Total revenue |
14,232 |
27 |
14,259 |
196 |
14,455 |
12,464 |
74 |
12,538 |
14 |
14 |
15 |
|
Operating Expense Numbers |
||||||||||||
Cost of software and software-related services |
−2,111 |
285 |
−1,826 |
−1,823 |
202 |
−1,621 |
16 |
13 |
||||
Cost of professional services and other services |
−2,232 |
33 |
−2,199 |
−2,071 |
18 |
−2,053 |
8 |
7 |
||||
Research and development |
−1,939 |
41 |
−1,898 |
−1,729 |
23 |
−1,706 |
12 |
11 |
||||
Sales and marketing |
−3,080 |
127 |
−2,953 |
−2,645 |
95 |
−2,550 |
16 |
16 |
||||
General and administration |
−718 |
31 |
−687 |
−636 |
26 |
−610 |
13 |
13 |
||||
Restructuring |
−4 |
4 |
0 |
3 |
−3 |
0 |
<-100 |
0 |
||||
TomorrowNow litigation |
717 |
−717 |
0 |
−981 |
981 |
0 |
<-100 |
0 |
||||
Other operating income/expense, net |
14 |
0 |
14 |
9 |
0 |
9 |
56 |
56 |
||||
Total operating expenses |
−9,353 |
−196 |
−9,549 |
−128 |
−9,677 |
−9,873 |
1,342 |
−8,531 |
−5 |
12 |
13 |
|
Profit Numbers |
||||||||||||
Operating profit |
4,879 |
−169 |
4,710 |
68 |
4,778 |
2,591 |
1,416 |
4,007 |
88 |
18 |
19 |
|
Other non-operating income/expense, net |
−79 |
0 |
−79 |
−186 |
−4 |
−190 |
−58 |
−58 |
||||
Finance income |
123 |
0 |
123 |
73 |
0 |
73 |
68 |
68 |
||||
Finance costs TomorrowNow litigation |
8 |
−8 |
0 |
−12 |
12 |
0 |
<-100 |
0 |
||||
Other finance costs |
−168 |
0 |
−168 |
−128 |
0 |
−128 |
31 |
31 |
||||
Finance costs |
−160 |
−8 |
−168 |
−140 |
12 |
−128 |
14 |
31 |
||||
Financial income, net |
−37 |
−8 |
−45 |
−67 |
12 |
−55 |
−45 |
−18 |
||||
Profit before tax |
4,763 |
−177 |
4,586 |
2,338 |
1,424 |
3,762 |
104 |
22 |
||||
Income tax TomorrowNow litigation |
−281 |
281 |
0 |
377 |
−377 |
0 |
<-100 |
0 |
||||
Other income tax expense |
−1,041 |
−174 |
−1,215 |
−902 |
−122 |
−1,024 |
15 |
19 |
||||
Income tax expense |
−1,322 |
107 |
−1,215 |
−525 |
−499 |
−1,024 |
152 |
19 |
||||
Profit after tax |
3,441 |
−70 |
3,371 |
1,813 |
925 |
2,738 |
90 |
23 |
||||
Profit attributable to non-controlling interests |
1 |
0 |
1 |
2 |
0 |
2 |
−50 |
−50 |
||||
Profit attributable to owners of parent |
3,440 |
−70 |
3,370 |
1,811 |
925 |
2,736 |
90 |
23 |
||||
Key Ratios |
||||||||||||
Operating margin in % |
34.3 |
33.0 |
33.1 |
20.8 |
32.0 |
13.5pp |
1.0pp |
1.1pp |
||||
Effective tax rate in % |
27.8 |
26.5 |
22.5 |
27.2 |
5.3pp |
−0.7pp |
||||||
Basic earnings per share, in EUR* |
2.89 |
2.83 |
1.52 |
2.30 |
90 |
23 |
||||||
* Adjustments in the revenue line items are for support revenue 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 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. Differences may exist due to rounding. |
||||||||||||
REVENUE BY REGION (Preliminary and Unaudited) The following table presents our IFRS and non-IFRS revenue by region 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. |
||||||||||||
Three months ended December 31 |
||||||||||||
EUR millions |
2011 |
2010 |
Change in % |
|||||||||
IFRS |
Adj.* |
Non- |
Currency |
Non-IFRS |
IFRS |
Adj.* |
Non- |
IFRS |
Non- |
Non-IFRS |
||
Software revenue by region |
||||||||||||
EMEA |
844 |
0 |
844 |
7 |
851 |
724 |
0 |
724 |
17 |
17 |
18 |
|
Americas |
612 |
0 |
612 |
10 |
622 |
553 |
0 |
553 |
11 |
11 |
12 |
|
Asia Pacific Japan |
288 |
0 |
288 |
1 |
289 |
230 |
0 |
230 |
25 |
25 |
26 |
|
Software revenue |
1,744 |
0 |
1,744 |
17 |
1,761 |
1,507 |
0 |
1,507 |
16 |
16 |
17 |
|
Software and software-related service revenue by region |
||||||||||||
Germany |
577 |
0 |
577 |
0 |
577 |
524 |
0 |
524 |
10 |
10 |
10 |
|
Rest of EMEA |
1,260 |
0 |
1,260 |
9 |
1,269 |
1,122 |
11 |
1,133 |
12 |
11 |
12 |
|
Total EMEA |
1,837 |
0 |
1,837 |
9 |
1,846 |
1,646 |
11 |
1,657 |
12 |
11 |
11 |
|
United States |
895 |
0 |
895 |
−5 |
890 |
804 |
21 |
825 |
11 |
8 |
8 |
|
Rest of Americas |
379 |
0 |
379 |
18 |
397 |
331 |
3 |
334 |
15 |
13 |
19 |
|
Total Americas |
1,274 |
1 |
1,275 |
12 |
1,287 |
1,135 |
24 |
1,159 |
12 |
10 |
11 |
|
Japan |
182 |
0 |
182 |
−13 |
169 |
133 |
2 |
135 |
37 |
35 |
25 |
|
Rest of Asia Pacific Japan |
428 |
0 |
428 |
4 |
432 |
358 |
2 |
360 |
20 |
19 |
20 |
|
Total Asia Pacific Japan |
609 |
0 |
609 |
−8 |
601 |
492 |
3 |
495 |
24 |
23 |
21 |
|
Software and software-related service revenue |
3,720 |
1 |
3,721 |
13 |
3,734 |
3,273 |
38 |
3,311 |
14 |
12 |
13 |
|
Total revenue by region |
||||||||||||
Germany |
728 |
0 |
728 |
1 |
729 |
724 |
0 |
724 |
1 |
1 |
1 |
|
Rest of EMEA |
1,501 |
0 |
1,501 |
11 |
1,512 |
1,350 |
11 |
1,361 |
11 |
10 |
11 |
|
Total EMEA |
2,230 |
0 |
2,230 |
10 |
2,240 |
2,074 |
11 |
2,085 |
8 |
7 |
7 |
|
United States |
1,108 |
0 |
1,108 |
−7 |
1,101 |
1,012 |
21 |
1,033 |
9 |
7 |
7 |
|
Rest of Americas |
462 |
0 |
462 |
20 |
482 |
402 |
3 |
405 |
15 |
14 |
19 |
|
Total Americas |
1,569 |
1 |
1,570 |
13 |
1,583 |
1,414 |
24 |
1,438 |
11 |
9 |
10 |
|
Japan |
202 |
0 |
202 |
−14 |
188 |
153 |
2 |
155 |
32 |
30 |
21 |
|
Rest of Asia Pacific Japan |
497 |
0 |
497 |
5 |
502 |
418 |
2 |
420 |
19 |
18 |
20 |
|
Total Asia Pacific Japan |
699 |
0 |
699 |
−9 |
690 |
571 |
3 |
574 |
22 |
22 |
20 |
|
Total revenue |
4,498 |
1 |
4,499 |
15 |
4,514 |
4,058 |
38 |
4,096 |
11 |
10 |
10 |
|
Twelve months ended December 31 |
||||||||||||
EUR millions |
2011 |
2010 |
Change in % |
|||||||||
IFRS |
Adj.* |
Non- |
Currency |
Non-IFRS |
IFRS |
Adj.* |
Non- |
IFRS |
Non- |
Non-IFRS |
||
Software revenue by region |
||||||||||||
EMEA |
1,773 |
0 |
1,773 |
14 |
1,787 |
1,471 |
0 |
1,471 |
21 |
21 |
21 |
|
Americas |
1,482 |
0 |
1,482 |
75 |
1,557 |
1,247 |
0 |
1,247 |
19 |
19 |
25 |
|
Asia Pacific Japan |
714 |
0 |
714 |
8 |
722 |
547 |
0 |
547 |
31 |
31 |
32 |
|
Software revenue |
3,970 |
0 |
3,970 |
96 |
4,066 |
3,265 |
0 |
3,265 |
22 |
22 |
25 |
|
Software and software-related service revenue by region |
||||||||||||
Germany |
1,725 |
0 |
1,725 |
0 |
1,725 |
1,564 |
0 |
1,564 |
10 |
10 |
10 |
|
Rest of EMEA |
3,804 |
8 |
3,812 |
−5 |
3,807 |
3,319 |
20 |
3,339 |
15 |
14 |
14 |
|
Total EMEA |
5,528 |
8 |
5,536 |
−4 |
5,532 |
4,883 |
20 |
4,903 |
13 |
13 |
13 |
|
United States |
2,870 |
15 |
2,885 |
146 |
3,031 |
2,497 |
42 |
2,539 |
15 |
14 |
19 |
|
Rest of Americas |
1,088 |
2 |
1,090 |
31 |
1,121 |
930 |
5 |
935 |
17 |
17 |
20 |
|
Total Americas |
3,958 |
17 |
3,975 |
178 |
4,153 |
3,427 |
47 |
3,474 |
15 |
14 |
20 |
|
Japan |
579 |
1 |
580 |
−24 |
556 |
448 |
3 |
451 |
29 |
29 |
23 |
|
Rest of Asia Pacific Japan |
1,253 |
1 |
1,254 |
4 |
1,258 |
1,036 |
4 |
1,040 |
21 |
21 |
21 |
|
Total Asia Pacific Japan |
1,832 |
2 |
1,834 |
−21 |
1,813 |
1,484 |
7 |
1,491 |
23 |
23 |
22 |
|
Software and software-related service revenue |
11,318 |
27 |
11,345 |
153 |
11,498 |
9,794 |
74 |
9,868 |
16 |
15 |
17 |
|
Total revenue by region |
||||||||||||
Germany |
2,346 |
0 |
2,346 |
0 |
2,346 |
2,195 |
0 |
2,195 |
7 |
7 |
7 |
|
Rest of EMEA |
4,644 |
8 |
4,652 |
−5 |
4,647 |
4,068 |
20 |
4,089 |
14 |
14 |
14 |
|
Total EMEA |
6,990 |
8 |
6,998 |
−6 |
6,992 |
6,263 |
20 |
6,283 |
12 |
11 |
11 |
|
United States |
3,699 |
15 |
3,714 |
189 |
3,903 |
3,243 |
42 |
3,286 |
14 |
13 |
19 |
|
Rest of Americas |
1,392 |
2 |
1,394 |
37 |
1,431 |
1,192 |
5 |
1,197 |
17 |
16 |
20 |
|
Total Americas |
5,091 |
17 |
5,108 |
226 |
5,334 |
4,435 |
47 |
4,482 |
15 |
14 |
19 |
|
Japan |
652 |
1 |
653 |
−28 |
625 |
513 |
3 |
516 |
27 |
27 |
21 |
|
Rest of Asia Pacific Japan |
1,499 |
1 |
1,500 |
2 |
1,502 |
1,253 |
4 |
1,256 |
20 |
19 |
20 |
|
Total Asia Pacific Japan |
2,151 |
2 |
2,153 |
−25 |
2,128 |
1,766 |
7 |
1,772 |
22 |
22 |
20 |
|
Total revenue |
14,232 |
27 |
14,259 |
196 |
14,455 |
12,464 |
74 |
12,538 |
14 |
14 |
15 |
|
NEW INCOME STATEMENTS FORMAT – CONSOLIDATED INCOME STATEMENT for the twelve months ended December 31 (Preliminary and Unaudited) |
||||
EUR millions, unless otherwise stated |
2011 |
2010 |
Change in % |
|
Software |
4,106 |
3,410 |
20 |
|
Support |
7,194 |
6,370 |
13 |
|
Cloud subscriptions and -support |
18 |
14 |
29 |
|
Software and software-related service revenue |
11,318 |
9,794 |
16 |
|
Consulting |
2,341 |
2,197 |
7 |
|
Other services |
573 |
473 |
21 |
|
Professional services and other service revenue |
2,914 |
2,670 |
9 |
|
Total revenue |
14,232 |
12,464 |
14 |
|
Cost of software and software-related services |
−2,111 |
−1,823 |
16 |
|
Cost of professional services and other services |
−2,232 |
−2,071 |
8 |
|
Total cost of revenue |
−4,343 |
−3,894 |
12 |
|
Gross profit |
9,889 |
8,570 |
15 |
|
Research and development |
−1,939 |
−1,729 |
12 |
|
Sales and marketing |
−3,080 |
−2,645 |
16 |
|
General and administration |
−718 |
−636 |
13 |
|
Restructuring |
−4 |
3 |
<-100 |
|
TomorrowNow litigation |
717 |
−981 |
<-100 |
|
Other operating income/expense, net |
14 |
9 |
56 |
|
Total operating expenses |
−9,353 |
−9,873 |
−5 |
|
Operating profit |
4,879 |
2,591 |
88 |
|
Other non-operating income/expense, net |
−79 |
−186 |
−58 |
|
Finance income |
123 |
73 |
68 |
|
Finance costs TomorrowNow litigation |
8 |
−12 |
<-100 |
|
Other finance costs |
−168 |
−128 |
31 |
|
Finance costs |
−160 |
−140 |
14 |
|
Financial income, net |
−37 |
−67 |
−45 |
|
Profit before tax |
4,763 |
2,338 |
104 |
|
Income tax TomorrowNow litigation |
−281 |
377 |
<-100 |
|
Other income tax expense |
−1,041 |
−902 |
15 |
|
Income tax expense |
−1,322 |
−525 |
152 |
|
Profit after tax |
3,441 |
1,813 |
90 |
|
Profit attributable to non-controlling interests |
1 |
2 |
−50 |
|
Profit attributable to owners of parent |
3,440 |
1,811 |
90 |
|
Basic earnings per share, in EUR* |
2.89 |
1.52 |
90 |
|
Diluted earnings per share, in EUR* |
2.89 |
1.52 |
90 |
|
NEW INCOME STATEMENTS FORMAT – RECONCILIATIONS FROM NON-IFRS NUMBERS TO IFRS NUMBERS (NEW) (Preliminary and Unaudited) |
||||||||||||
Twelve months ended December 31 |
||||||||||||
EUR millions, unless otherwise stated |
2011 |
2010 |
Change in % |
|||||||||
IFRS |
Adj.* |
Non- |
Currency |
Non-IFRS |
IFRS |
Adj.* |
Non- |
IFRS |
Non- |
Non-IFRS |
||
Revenue Numbers |
||||||||||||
Software |
4,106 |
0 |
4,106 |
96 |
4,202 |
3,410 |
0 |
3,410 |
20 |
20 |
23 |
|
Support |
7,194 |
27 |
7,221 |
57 |
7,278 |
6,370 |
74 |
6,444 |
13 |
12 |
13 |
|
Cloud subscriptions and -support |
18 |
0 |
18 |
0 |
18 |
14 |
0 |
14 |
29 |
29 |
29 |
|
Software and software-related service revenue |
11,318 |
27 |
11,345 |
153 |
11,498 |
9,794 |
74 |
9,868 |
16 |
15 |
17 |
|
Consulting |
2,341 |
0 |
2,341 |
35 |
2,376 |
2,197 |
0 |
2,197 |
7 |
7 |
8 |
|
Other services |
573 |
0 |
573 |
8 |
581 |
473 |
0 |
473 |
21 |
21 |
23 |
|
Professional services and other service revenue |
2,914 |
0 |
2,914 |
43 |
2,957 |
2,670 |
0 |
2,670 |
9 |
9 |
11 |
|
Total revenue |
14,232 |
27 |
14,259 |
196 |
14,455 |
12,464 |
74 |
12,538 |
14 |
14 |
15 |
|
Operating Expense Numbers |
||||||||||||
Cost of software and software-related services |
−2,111 |
285 |
−1,826 |
−1,823 |
202 |
−1,621 |
16 |
13 |
||||
Cost of professional services and other services |
−2,232 |
33 |
−2,199 |
−2,071 |
18 |
−2,053 |
8 |
7 |
||||
Total cost of revenue |
−4,343 |
318 |
−4,025 |
−3,894 |
220 |
−3,674 |
12 |
10 |
||||
Gross profit |
9,889 |
345 |
10,234 |
8,570 |
294 |
8,864 |
15 |
15 |
||||
Research and development |
−1,939 |
41 |
−1,898 |
−1,729 |
23 |
−1,706 |
12 |
11 |
||||
Sales and marketing |
−3,080 |
127 |
−2,953 |
−2,645 |
95 |
−2,550 |
16 |
16 |
||||
General and administration |
−718 |
31 |
−687 |
−636 |
26 |
−610 |
13 |
13 |
||||
Restructuring |
−4 |
4 |
0 |
3 |
−3 |
0 |
<-100 |
0 |
||||
TomorrowNow litigation |
717 |
−717 |
0 |
−981 |
981 |
0 |
<-100 |
0 |
||||
Other operating income/expense, net |
14 |
0 |
14 |
9 |
0 |
9 |
56 |
56 |
||||
Total operating expenses |
−9,353 |
−196 |
−9,549 |
−128 |
−9,677 |
−9,873 |
1,342 |
−8,531 |
−5 |
12 |
13 |
|
Profit Numbers |
||||||||||||
Operating profit |
4,879 |
−169 |
4,710 |
68 |
4,778 |
2,591 |
1,416 |
4,007 |
88 |
18 |
19 |
|
Other non-operating income/expense, net |
−79 |
0 |
−79 |
−186 |
−4 |
−190 |
−58 |
−58 |
||||
Finance income |
123 |
0 |
123 |
73 |
0 |
73 |
68 |
68 |
||||
Finance costs TomorrowNow litigation |
8 |
−8 |
0 |
−12 |
12 |
0 |
<-100 |
0 |
||||
Other finance costs |
−168 |
0 |
−168 |
−128 |
0 |
−128 |
31 |
31 |
||||
Finance costs |
−160 |
−8 |
−168 |
−140 |
12 |
−128 |
14 |
31 |
||||
Financial income, net |
−37 |
−8 |
−45 |
−67 |
12 |
−55 |
−45 |
−18 |
||||
Profit before tax |
4,763 |
−177 |
4,586 |
2,338 |
1,424 |
3,762 |
104 |
22 |
||||
Income tax TomorrowNow litigation |
−281 |
281 |
0 |
377 |
−377 |
0 |
<-100 |
0 |
||||
Other income tax expense |
−1,041 |
−174 |
−1,215 |
−902 |
−122 |
−1,024 |
15 |
19 |
||||
Income tax expense |
−1,322 |
107 |
−1,215 |
−525 |
−499 |
−1,024 |
152 |
19 |
||||
Profit after tax |
3,441 |
−70 |
3,371 |
1,813 |
925 |
2,738 |
90 |
23 |
||||
Profit attributable to non-controlling interests |
1 |
0 |
1 |
2 |
0 |
2 |
−50 |
−50 |
||||
Profit attributable to owners of parent |
3,440 |
−70 |
3,370 |
1,811 |
925 |
2,736 |
90 |
23 |
||||
Key Ratios |
||||||||||||
Operating margin in % |
34.3 |
33.0 |
33.1 |
20.8 |
32.0 |
13.5pp |
1.0pp |
1.1pp |
||||
Effective tax rate in % |
27.8 |
26.5 |
22.5 |
27.2 |
5.3pp |
−0.7pp |
||||||
Basic earnings per share, in EUR* |
2.89 |
2.83 |
1.52 |
2.30 |
90 |
23 |
||||||
* Adjustments in the revenue line items are for support revenue 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. See Explanations of Non-IFRS Measures for details. ** 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. Differences may exist due to rounding. For a more detailed description of these adjustments and their limitations as well as our constant currency and free cash flow figures see Explanations of Non-IFRS Measures online (www.sap.com/about/investor/index.epx). |
||||||||||||
SOURCE SAP AG
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