0000950123-01-507438.txt : 20011026 0000950123-01-507438.hdr.sgml : 20011026 ACCESSION NUMBER: 0000950123-01-507438 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20011022 FILED AS OF DATE: 20011022 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SAP AKTIENGESELLSCHAFT SYSTEMS APPLICATIONS PRODUCTS IN DATA CENTRAL INDEX KEY: 0001000184 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] STATE OF INCORPORATION: I8 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14251 FILM NUMBER: 1763131 BUSINESS ADDRESS: STREET 1: NEUROTTSTRABE 16 STREET 2: WALLDORF, FEDERAL REPUBLIC OF GERMAN CITY: NEW YORK STATE: NY ZIP: 69190 BUSINESS PHONE: 0114962277 MAIL ADDRESS: STREET 1: NEUROTTSTRASSE 16 CITY: WALLDORF D 69190 STATE: I8 6-K 1 f00289e6-k.txt FORM 6-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 October 22, 2001 SAP AKTIENGESELLSCHAFT SYSTEME, ANWENDUNGEN, PRODUKTE IN DER DATENVERARBEITUNG (Exact name of registrant as specified in its charter) SAP CORPORATION SYSTEMS, APPLICATIONS AND PRODUCTS IN DATA PROCESSING (Translation of registrant's name into English) Neurottstrasse 16 69190 Walldorf Federal Republic of Germany (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F [X] Form 40-F [ ] Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes [ ] No [X] If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_______. SAP AKTIENGESELLSCHAFT SYSTEME, ANWENDUNGEN, PRODUKTE IN DER DATENVERARBEITUNG FORM 6-K On October 18, 2001 SAP Aktiengesellschaft Systeme, Anwendungen, Produkte in der Datenverarbeitung, a stock corporation organized under the laws of the Federal Republic of Germany (the "Company"), issued a Press Release announcing its results for the three-month and nine-month periods ended September 30, 2001 (the "Press Release"). The Press Release is attached as Exhibit 99.1 hereto and incorporated by reference herein. 2 EXHIBITS Exhibit No. Exhibit ----------- ------- 99.1 Press Release dated October 18, 2001. 3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SAP AKTIENGESELLSCHAFT SYSTEME, ANWENDUNGEN, PRODUKTE IN DER DATENVERARBEITUNG (Registrant) By: /s/ Henning Kagermann ---------------------------------- Name: Prof. Dr. Henning Kagermann Title: CEO and Co-Chairman By: /s/ Werner Brandt ------------------------ Name: Dr. Werner Brandt Title: CFO Date: October 22, 2001 4 EXHIBIT INDEX Exhibit No. Exhibit ----------- ------- 99.1 Press Release dated October 18, 2001. 5 EX-99.1 3 f00289ex99-1.txt PRESS RELEASE [SAP LOGO] PRESS INFORMATION SAP AG Neurottstrasse 16 D-69190 Walldorf Germany CORPORATE COMMUNICATIONS Phone +49 (62 27) 7- 4 63 11 Fax +49 (62 27) 7- 4 63 31 www.sap.com E-mail: press@sap.com FOR IMMEDIATE RELEASE Contact: Gundolf Moritz SAP AG +49-6227-7-44872 -or- Stefan Gruber SAP AG +1-212-653-9821 -or- Jim Prout Taylor Rafferty +1-212-889-4350 SAP REPORTS 23% REVENUE GROWTH FOR THE FIRST NINE MONTHS OF 2001 o Revenues for the nine month period exceeded E5.0 billion (23% increase); third quarter revenues were E1.65 billion (16% increase) o Operating margin, excluding stock based compensation and TopTier acquisition related charges, increased 3% points to 17% for the first nine months o Meets expectations for the first nine months of 2001 and improves market share o New full year guidance WALLDORF, GERMANY - OCTOBER 18, 2001 - SAP AG (NYSE: SAP), the leading provider of e-business software solutions, today announced its financial results for the third quarter and nine months ended September 30, 2001. For the first nine months, sales increased 23% over 2000 to E5.0 billion (2000: E4.1 billion). THIRD QUARTER RESULTS In the third quarter of 2001, revenues rose 16% over the same period last year to E1.65 billion (2000: E1.42 billion). Third quarter 2001 operating income, before charges for stock-based compensation programs (STAR and LTI) and TopTier acquisition related charges, were flat at E201 million (2000: E202 million). Operating margin, excluding stock based compensation and TopTier acquisition related charges, was 12% (2000: 14%). Earnings before interest, taxes, depreciation and amortization ("EBITDA") improved by 18% to E235 million (2000: E200 million). Net income for the third quarter 2001, adjusted for the TopTier acquisition costs and the Commerce One impact, was E78 million (2000: E88 million) and earnings per share was E0.25 (2000: E0.28). "Recently, we have seen significant changes in the software market, mainly in the U.S., with customers and prospects postponing decisions on software purchases," commented Hasso - more - - 2 - Plattner, Co-Chairman and CEO of SAP AG. "However, companies remain committed to investing in the most cost effective solutions available and are increasingly turning to SAP for high returns on investments, broad functionality and ease of integration." In the quarter, revenues in Europe, the Middle East and Africa (EMEA) region increased 32% to E841 million (2000: E639 million) and in the Asia-Pacific region (APA) revenues were down 6% to E195 million (2000: E208 million). Revenues in the Americas region rose 7% to E613 million (2000: E574 million); however, at constant currency rates, revenues in the Americas would have risen 9%. "We are pleased to have met our guidance for the first nine months of 2001, although we had thought software license sales for the quarter would be stronger," said Henning Kagermann, Co-Chairman and CEO of SAP AG. "Consulting and training revenues contributed significantly to our revenue mix, and our regional strength was evidenced by robust results in Europe." Product revenues in the third quarter rose 9% to E995 million (2000: E913 million). License revenues were down 7% to E447 million (2000: E480 million). Consulting and training revenues rose 30% to E524 million (2000: E404 million) and 19% to E113 million (2000: E95 million), respectively. For the third consecutive quarter, the Company is providing additional information on revenues from certain specific software solutions. In the third quarter of 2001, software revenues related to mySAP CRM (Customer Relationship Management) reached approximately E78 million, representing 17% of total software license sales (E447 million). Third quarter mySAP SCM (Supply Chain Management) related revenues totaled around E98 million, representing 22% of total software license sales. These figures include revenues from designated solution contracts, as well as figures from integrated solution contracts, which are allocated based on usage surveys. NINE MONTHS RESULTS For the first nine months, sales increased 23% over 2000 to E5.0 billion (2000: E4.1 billion). Operating income, before charges for stock based compensation and TopTier acquisition related charges, was up 49% to E858 million (2000: E576 million). License revenues for the first nine months of 2001 rose 11% to E1.55 billion (2000: E1.4 billion). Consulting revenues grew 34% to E1.51 billion (2000: E1.13 billion) and training revenue increased 20% to E349 million (2000: E290 million). In the first nine months, sales in the APA region were up 10% to E593 million (2000: E539 million), in the EMEA region, revenues increased 33% to E2.6 billion (2000: E1.96 billion) and in the Americas, revenues rose 14% to E1.83 billion (2000: E1.61 billion). In the nine month period, software revenues related to mySAP CRM (Customer Relationship Management) reached approximately E249 million, representing 16% of total software license sales (E1,551 million). Nine month mySAP SCM (Supply Chain Management) related revenues totaled around E351 million, representing 23% of total software license sales. These figures include revenues from designated solution contracts, - more - - 3 - as well as figures from integrated solution contracts, which are allocated based on usage surveys. FULL YEAR GUIDANCE Due to changes in corporate software spending timetables, SAP has updated its full year outlook and now sees full year 2001 revenues growing by around 15% and expects operating margins excluding stock based compensation and TopTier acquisition related charges to match the 20% levels achieved in 2000. SAP continues to shape and re-focus its global organization and enhance its products and services in this rapidly changing environment. Consequently, the Company is accelerating cost reduction measurements, including adjusting the levels and mix of its employees, particularly in the U.S. The Company continues to extend its infrastructure in certain areas where SAP is growing its profile, such as CRM and SCM. THIRD QUARTER HIGHLIGHTS o MAJOR CONTRACTS IN THE QUARTER INCLUDED Rolls Royce, Centrica and Getronics in the EMEA region; CreoScitex, City of Montreal and Agilent in the Americas; and Samsung, Telephone Organization of Thailand and Shanghai Pudong Development Bank in the APA region among others in all regions. o SAP CONCLUDED ADDITIONAL INVESTMENT IN COMMERCE ONE: SAP received all necessary approvals from U. S. antitrust authorities for its additional investment. SAP now owns slightly more than 20% of Commerce One outstanding stock. o SAP BEGAN SHIPPING THE NEWEST VERSION OF MYSAP CUSTOMER RELATIONSHIP MANAGEMENT TO CUSTOMERS WORLDWIDE IN AUGUST: mySAP CRM provides unparalleled breadth and depth of functionality through a full suite of CRM functions. In addition, mySAP CRM can also serve as a platform to openly integrate with either SAP or non-SAP business applications such as supply chain management, product lifecycle management and human lifecycle management for flexibility that meets each business's unique needs. o SAP AG ESTABLISHED A GLOBAL PROFESSIONAL SERVICES ORGANIZATION (GLOBAL PSO) WITHIN SAP AG: The new business unit will work closely with the global consulting partners of SAP and focus on high-profile SAP customers that require consulting services for global e-business solution projects, independent of geography and across industries. CONFERENCE CALL/WEBCAST/SUPPORTING SLIDES SAP senior management will host a conference call today at 5:00 PM (CET) / 4:00 PM (GMT) / 11:00 AM (Eastern) / 8:00 AM (Pacific). This call will be web cast live at http://www.sap.com/investor and will be available for replay purposes as well. - more - - 4 -
REVENUE BY REGION (IN E MILLIONS) -------------------------------------------------------------------------------------------------------- REVENUE REVENUE 3Q 2001 3Q 2000 CHANGE % CHANGE -------------------------------------------------------------------------------------------------------- Total 1,649 1,421 228 16 - at constant currency rates 19 EMEA 841 639 202 32 - at constant currency rates 32 Asia Pacific 195 208 -13 -6 - at constant currency rates 3 Americas 613 574 39 7 -------------------------------------------------------------------------------------------------------- - at constant currency rates 9
KEY FIGURES AT A GLANCE (IN E MILLIONS) SAP GROUP
-------------------------------------------------------------------------------------------------------- 3Q 2001 3Q 2000 CHANGE % CHANGE -------------------------------------------------------------------------------------------------------- Revenues 1649 1,421 228 16 License revenues 447 480 -33 -7 Income before taxes 109 149 -40 -27 Net income 37 83 -46 -55 -------------------------------------------------------------------------------------------------------- Headcount (September 30) 27,884 23,363 4521 19
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 "believe," "estimate," "intend," "may," "will," "expect," and "project" and similar expressions as they relate to the Company are intended to identify such forward-looking statements. The Company 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 the Company's future financial results are discussed more fully in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC"), including the Company's Annual Report on Form 20-F for 2000 filed with the SEC on March 28, 2001. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. SAP AG ordinary shares are listed on the Frankfurt Stock Exchange as well as a number of other exchanges. In the US, SAP's American Depositary Receipts (ADRs), each worth one-fourth of a ordinary share, trade on the New York Stock Exchange under the symbol `SAP'. SAP is a component of the DAX, the index of 30 German blue chip companies. Information on the SAP common shares is available on Bloomberg under the symbol SAP GR, on Reuters under SAPG.F and on Quotron under SAGR.EU. Additional information is available on SAP AG's home page: http://www.sap.com # # # (Tables to follow) - more - - 5 - CONSOLIDATED INCOME STATEMENTS - 3RD QUARTER SAP Group (in E millions)
------------------------------------------------------------------------------------------ 2001 2000 (DELTA) ------------------------------------------------------------------------------------------ Software revenue 447 480 -7% Maintenance revenue 548 433 27% Product revenue 995 913 9% Consulting revenue 524 404 30% Training revenue 113 95 19% Service revenue 637 499 28% Other revenue 17 9 89% ------------------------------------------------------------------------------------------ TOTAL REVENUE 1,649 1,421 16% ------------------------------------------------------------------------------------------ Cost of product -203 -174 17% Cost of service -510 -429 19% Research and development -217 -223 -3% Sales and marketing -438 -347 26% General and administration -97 -93 4% Other income/expenses, net -25 -7 257% ------------------------------------------------------------------------------------------ TOTAL OPERATING EXPENSE -1,490 -1,273 17% ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ OPERATING INCOME 159 148 7% ------------------------------------------------------------------------------------------ Other non-operating income/ expenses, net 20 5 300% Financial income, net -70 -4 -1650% ------------------------------------------------------------------------------------------ INCOME BEFORE INCOME TAXES 109 149 -27% ------------------------------------------------------------------------------------------ Income taxes -69 -62 11% Minority interest -3 -4 -25% ------------------------------------------------------------------------------------------ NET INCOME 37 83 -55% ------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------ BASIC EPS (IN E) 0.12 0.26 -54% ------------------------------------------------------------------------------------------
- more - - 6 - CONSOLIDATED INCOME STATEMENTS - 3RD QUARTER SAP Group (in E millions) Additional Information
-------------------------------------------------------------------------------------------------------------- 2001 2000 (DELTA) -------------------------------------------------------------------------------------------------------------- Operating Income 159 148 7% Depreciation & Amortization 76 52 46% -------------------------------------------------------------------------------------------------------------- EBITDA 235 200 18% AS A % OF SALES 14% 14% -------------------------------------------------------------------------------------------------------------- Operating Income 159 148 7% Total Stock Based Compensation 21 54 -61% TopTier Acquisition costs 21 0 n/a -------------------------------------------------------------------------------------------------------------- OPERATING INCOME EXCLUDING STOCK BASED COMPENSATION AND TOPTIER ACQUISITION COSTS 201 202 0% AS A % OF SALES 12% 14% -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- COMMERCE ONE IMPACT -24 -5 -380% ON FINANCE INCOME -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- INCOME BEFORE INCOME TAXES 109 149 -27% -------------------------------------------------------------------------------------------------------------- Income taxes 69 62 11% -------------------------------------------------------------------------------------------------------------- EFFECTIVE TAX RATE 63% 42% -------------------------------------------------------------------------------------------------------------- Impact of TopTier & Commerce One in percentage points 16% 2% 14*% -------------------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------------------- EPS EXCLUDING ACQUISITION COST OF TOPTIER & COMMERCE ONE (IN E) 0.25 0.28 -11% --------------------------------------------------------------------------------------------------------------
* percentage points - more - - 7 - CONSOLIDATED INCOME STATEMENTS - 1ST - 3RD QUARTER SAP Group (in E millions)
----------------------------------------------------------------------------------------------- 2001 2000 (DELTA) ----------------------------------------------------------------------------------------------- Software revenue 1,551 1,403 11% Maintenance revenue 1,548 1,202 29% Product revenue 3,099 2,605 19% Consulting revenue 1,511 1,129 34% Training revenue 349 290 20% Service revenue 1,860 1.419 31% Other revenue 67 78 -14% ----------------------------------------------------------------------------------------------- TOTAL REVENUE 5,026 4,102 23% ----------------------------------------------------------------------------------------------- Cost of product -589 -487 21% Cost of service -1,434 -1,279 12% Research and development -653 -709 -8% Sales and marketing -1,283 -1,117 15% General and administration -279 -310 -10% Other income/expenses, net -50 -12 317% ----------------------------------------------------------------------------------------------- TOTAL OPERATING EXPENSE -4,288 -3,914 10% ----------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------- OPERATING INCOME 738 188 293% ----------------------------------------------------------------------------------------------- Other non-operating income/ expenses, net -9 -38 -76% Financial income, net -170 281 -160% ----------------------------------------------------------------------------------------------- INCOME BEFORE INCOME TAXES 559 431 30% ----------------------------------------------------------------------------------------------- Income taxes -288 -177 63% Minority interest -9 -5 80% ----------------------------------------------------------------------------------------------- NET INCOME 262 249 5% ----------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------- BASIC EPS (IN E) 0.83 0.79 5% -----------------------------------------------------------------------------------------------
- more - - 8 - CONSOLIDATED INCOME STATEMENTS - 1ST - 3RD QUARTER SAP Group (in E millions) Additional Information
------------------------------------------------------------------------------------------------------------ 2001 2000 (DELTA) ------------------------------------------------------------------------------------------------------------ Operating Income 738 188 293% Depreciation & Amortization 200 156 28% In-Process R&D 6 0 n/a ------------------------------------------------------------------------------------------------------------ EBITDA 944 344 174% AS A % OF SALES 19% 8% ------------------------------------------------------------------------------------------------------------ Operating Income 738 188 293% Total Stock Based Compensation 79 388 -80% TopTier acquisition costs 41 0 n/a ------------------------------------------------------------------------------------------------------------ OPERATING INCOME EXCLUDING STOCK BASED COMPENSATION AND TOPTIER ACQUISITION COSTS 858 576 49% AS A % OF SALES 17% 14% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ COMMERCE ONE IMPACT -122 -11 -1009% ON FINANCE INCOME ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ INCOME BEFORE INCOME TAXES 559 431 30% ------------------------------------------------------------------------------------------------------------ Income taxes 288 177 63% ------------------------------------------------------------------------------------------------------------ EFFECTIVE TAX RATE 52% 41% ------------------------------------------------------------------------------------------------------------ Impact of TopTier & Commerce One in percentage points 13% 1% 12*% ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ EPS EXCLUDING ACQUISITION COST OF TOP TIER & COMMERCE ONE (IN E) 1.33 0.83 60% ------------------------------------------------------------------------------------------------------------
* percentage points - more - -9 -
CONSOLIDATED BALANCE SHEET SAP Group (in E millions) ASSETS -------------------------------------------------------------------------------------------------------------------------------- 09/30/2001 12/31/2000 -------------------------------------------------------------------------------------------------------------------------------- INTANGIBLE ASSETS 496 116 PROPERTY, PLANT AND EQUIPMENT 957 871 FINANCIAL ASSETS 748 637 -------------------------------------------------------------------------------------------------------------------------------- FIXED ASSETS 2,201 1,624 INVENTORIES/ACCOUNTS RECEIVABLES 2,002 2,393 LIQUID ASSETS/MARKETABLE SECURITIES 809 1,182 -------------------------------------------------------------------------------------------------------------------------------- CURRENT ASSETS 2,811 3,575 DEFERRED TAXES 295 305 PREPAID EXPENSES 196 115 -------------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS 5,503 5,619 --------------------------------------------------------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES -------------------------------------------------------------------------------------------------------------------------------- 09/30/2001 12/31/2000 -------------------------------------------------------------------------------------------------------------------------------- SHAREHOLDERS' EQUITY 2,722 2,927 1) MINORITY INTEREST 57 61 RESERVES AND ACCRUED LIABILITIES 966 1,435 OTHER LIABILITIES 1,212 831 DEFERRED INCOME 546 365 -------------------------------------------------------------------------------------------------------------------------------- TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 5,503 5,619 -------------------------------------------------------------------------------------------------------------------------------- DAYS SALES OUTSTANDING 92 93
- more - - 10 - 1) includes temporary equity of EUR 409.5 million As a result of surpassing the 20% ownership threshold in Commerce One Inc., SAP is required to use the equity method of accounting to record, in finance income, a portion of Commerce One's net income or loss based upon SAP's investment percentage. In addition, SAP allocated the purchase price based on the ownership percentage of the Commerce One's recorded net equity. Any excess purchase price resulted in capitalization of additional assets including, in-process research and development ("in-process R&D"), software or other intangibles. Amounts pertaining to in-process R&D were written off immediately. Other intangibles identified are amortized over their estimated useful lives. Remaining amounts were considered goodwill, which is not amortized but rather will be subjected to annual impairment testing. Amounts capitalized are recorded in financial assets and related expenses are reflected in finance income. Under U.S. GAAP, the equity method must also be applied retroactively for investments previously held in Commerce One Inc., to improve comparability. Accordingly, financial result, financial assets and stockholders' equity amounts included since the second quarter of 2000 have been restated to reflect this retroactive change in accounting. This is purely an accounting measure that neither effects SAP's cash position, nor its operating results. The 2001 second quarter impact is largely due to Commerce One's one-time charges resulting from the write-off of intangible assets.