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
April 22, 2013
Commission file number:
1-14251
SAP AG
(Exact name of registrant as specified in its charter)
SAP CORPORATION
(Translation of registrants name into English)
Dietmar-Hopp-Allee 16
69190 Walldorf
Federal Republic of Germany
(Address of principal executive offices)
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- .
3 | ||||
4 | ||||
5 | ||||
SAP AG
FORM 6-K
On April 19, 2013, SAP AG, a stock corporation organized under the laws of the Federal Republic of Germany (SAP), issued a press release (the Press Release) announcing SAPs financial results for the first quarter ended March 31, 2013. The Press Release is attached as Exhibit 99.1 hereto and incorporated by reference herein.
This Press Release discloses certain non-IFRS measures. These measures are not prepared in accordance with IFRS and are therefore considered non-IFRS financial measures. The non-IFRS financial measures that we report should be considered in addition to, and not as substitutes for or superior to, revenue, operating income, cash flows, or other measures of financial performance prepared in accordance with IFRS.
Please refer to Explanations of Non-IFRS Measures online (www.sap.com/about/investor/index.epx) for further information regarding the non-IFRS measures.
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 SAPs future financial results are discussed more fully in SAPs filings with the U.S. Securities and Exchange Commission (the SEC), including SAPs most recent Annual Report on Form 20-F for 2012 filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
2
Exhibit No. |
Exhibit | |
99.1 | Press Release dated April 19, 2013 |
3
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 AG | ||
(Registrant) | ||
By: | /s/ Christoph Huetten | |
Name: Dr. Christoph Huetten | ||
Title: Chief Accounting Officer |
By: | /s/ Sonja Simon | |
Name: Sonja Simon | ||
Title: Head of Group Accounting and Reporting | ||
Date: April 22, 2013
4
Exhibit No. |
Exhibit | |
99.1 | Press Release dated April 19, 2013 |
5
For Immediate Release
April 19, 2013
SAP Announces First Quarter 2013 Results Non-IFRS Software and Cloud Subscription Revenue Increased 25% at Constant Currencies
| 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: SAPs 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 |
WALLDORF, Germany April 19, 2013 SAP AG (NYSE: SAP) today announced its financial results for the first quarter ended March 31, 2013.
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.
SAP Reports First Quarter 2013 Results | Page 2 |
The Company sees continued strong growth in the cloud. With the most comprehensive portfolio of cloud solutions, SAPs annual cloud revenue run rate is approaching 900 million1. 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 revenue2 was 377 million as of March 31, 2013, which is a year-over-year increase of 95%. The Companys cloud subscription and support backlog3 as of December 31, 2012 was 800 million. SAPs cloud applications total subscribers now exceed 24 million. For the Ariba segment the trailing twelve month network spend volume4 was approximately $460 billion. More than 1 million companies are connected through the Ariba network, the worlds largest Web-based business trading community.
Our industry is at a fundamental transformation point, driven by the convergence of mobile, cloud and big data. SAPs 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. SAPs 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.
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. |
SAP Reports First Quarter 2013 Results | Page 3 |
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 SAPs 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 SAPs 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.
SAP Reports First Quarter 2013 Results | Page 4 |
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 SAPs 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
SAPs 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 SAPs 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 Companys website at www.sap.com/investor and will be available for replay.
2012 Integrated Report, Annual Report, and Annual Report on Form 20-F
SAPs 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 Reports First Quarter 2013 Results | Page 5 |
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 SAPs future financial results are discussed more fully in SAPs filings with the U.S. Securities and Exchange Commission (SEC), including SAPs 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.
© 2013 SAP AG. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP AG and its affiliated companies (SAP Group) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.
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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 | |||
Non-IFRS Adjustments |
F6 | |||
Revenue by Region |
F7 |
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** |
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Revenue Numbers |
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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 | |||||||||||||||||||||||||||||||||
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Total revenue |
3,601 | 35 | 3,636 | 67 | 3,703 | 3,350 | 7 | 3,357 | 7 | 8 | 10 | |||||||||||||||||||||||||||||||||
Operating Expense Numbers |
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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 | ||||||||||||||||||||||||||||||||||||
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Total cost of revenue |
1,210 | 125 | 1,084 | 1,162 | 101 | 1,061 | 4 | 2 | ||||||||||||||||||||||||||||||||||||
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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 | ||||||||||||||||||||||||||||||||||||
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Total operating expenses |
2,955 | 221 | 2,734 | 40 | 2,774 | 2,719 | 196 | 2,523 | 9 | 8 | 10 | |||||||||||||||||||||||||||||||||
Profit Numbers |
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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 | ||||||||||||||||||||||||||||||||||||
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Financial income, net |
15 | 0 | 15 | 16 | 1 | 15 | 8 | 1 | ||||||||||||||||||||||||||||||||||||
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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 | ||||||||||||||||||||||||||||||||||||
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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 |
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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 years respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current years non-IFRS constant currency numbers with the non-IFRS number of the previous years respective period. |
F5
NON-IFRS ADJUSTMENTS
millions, unless otherwise stated |
01/01/ - 3/31/2013 |
01/01/ - 3/31/2012 |
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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** |
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Software revenue by region |
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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 | |||||||||||||||||||||||||||||||||
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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** |
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Software revenue by region |
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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 | |||||||||||||||||||||||||||||||||
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Software revenue |
657 | 0 | 657 | 11 | 668 | 637 | 0 | 637 | 3 | 3 | 5 | |||||||||||||||||||||||||||||||||
Software and cloud subscription revenue by region |
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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 | |||||||||||||||||||||||||||||||||
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Software and cloud subscription revenue |
794 | 30 | 824 | 13 | 837 | 666 | 6 | 672 | 19 | 23 | 25 | |||||||||||||||||||||||||||||||||
Software and software-related service revenue by region |
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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 |
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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 years respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current years non-IFRS constant currency numbers with the non-IFRS number of the previous years 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