For Immediate Release
October 20, 2014
SAP Announces Third Quarter and Nine Months 2014 Results
SAP Accelerates Shift to the Cloud with 41% Revenue Growth in Third Quarter and Once Again Raises Cloud Revenue Outlook – Broad Market Adoption of SAP HANA – “Run Simple” Strategy Validated
| • | Fastest Growing Enterprise Cloud Company at Scale: Non-IFRS Cloud Subscriptions and Support Revenue Increased 41% to €278 Million |
| • | Strong Cloud Billings: Non-IFRS Calculated Cloud Billings Increased 51% |
| • | Expanding the World’s Largest Business Network: More Than 1.6 Million Companies Transacting Nearly $600 Billion of Frictionless Commerce |
| • | Broad Market Adoption of SAP HANA: More Than 4,100 HANA Customers and More Than 1,450 Business Suite on HANA Customers Demonstrate the Clear Business Benefits of the Leading Real-Time Business Platform |
| • | Higher Revenue Share from More Predictable Cloud & Support Revenue: 62% in Third Quarter 2014 up From 59% a Year Ago |
| • | Strong Overall SSRS Performance and Growing Operating Profit Despite Mix Shift to Cloud Subscription: Non-IFRS Software and Software-Related Service Revenue Increased 7% to €3.6 Billion, Non-IFRS Operating Profit Increased 5% to €1.36 Billion |
| • | Non-IFRS Earnings Per Share Increased 8% to €0.84 Per Share |
| • | Full Year Outlook Reflecting Accelerated Shift to the Cloud: Raising Non-IFRS Cloud Subscriptions and Support Revenue Outlook to €1,040 – €1,070 Million and Now Expecting Non-IFRS Operating Profit Outlook in a Range of €5.6 - €5.8 Billion at Constant Currencies |
WALLDORF, Germany – October 20, 2014 – SAP SE (NYSE: SAP) today announced its financial results for the third quarter and nine months ended September 30, 2014.
BUSINESS HIGHLIGHTS IN THE THIRD QUARTER 2014
SAP again delivered strong growth in the cloud and a solid overall revenue performance. With non-IFRS cloud subscriptions and support revenue increasing 41% (42% at constant currencies) SAP is the fastest growing enterprise cloud company at scale1. Non-IFRS software and software-related service revenue grew 7% (7% at constant currencies). The negative effects from currency translation SAP experienced year-to-date dissipated in the third quarter and are expected to reverse in the fourth quarter 2014.
| 1 | Compared to SAP’s peer group companies with an enterprise software annual cloud revenue run rate above €1 billion. |
| SAP Reports Third Quarter and Nine Months 2014 Results | Page 2 |
“We are accelerating our shift to the cloud with more than 40% revenue growth in the cloud. SAP is THE cloud company powered by SAP HANA helping customers run simple with over 44 million cloud users and the world’s largest business network. We are leading the next generation customer engagement with the triple digit growth of our omni-channel e-commerce platform,” said Bill McDermott of SAP. “Our portfolio depth in the cloud, global scale and industry domain expertise are the bedrocks that separate us in the marketplace. With SAP HANA and the Business Network, SAP will continue to shape the future of the enterprise software industry.”
“We achieved a solid overall topline performance in the quarter with 7% growth in non-IFRS software and software-related service revenue. Year-to-date non-IFRS software and software-related service revenue is up 8% at constant currencies – at the high end of our full-year outlook range. Non-IFRS earnings per share increased 8% in the quarter,” said Luka Mucic, CFO of SAP. “Our order entry for new business in the cloud was more than one third of the software license revenue in the third quarter, up significantly from a year ago. With this powerful shift we are raising the cloud outlook again while adjusting the operating income range to reflect less upfront and more ratable revenue.”
SAP’s annual cloud revenue run rate now exceeds €1.3 billion2 or $1.7 billion3. Non-IFRS calculated cloud billings4 increased 51% (27% at constant currencies). Non-IFRS deferred cloud subscriptions and support revenue was €498 million as of September 30, 2014, a year-over-year increase of 30% (22% at constant currencies). SAP’s cloud applications total subscribers now exceed 44 million.
SAP is driving next generation customer engagement. Its hybris omni-channel e-commerce platform in combination with Cloud for Sales had another quarter of triple-digit growth in software revenue and cloud subscriptions and support revenue.
SAP is in the lead in the transformation to the global “Network Economy” with over 1.6 million connected companies on the world’s largest cloud-based business trading community. Trailing twelve month network spend volume5 was close to $600 billion – more than Amazon, eBay and Alibaba all combined. The planned addition of Concur would amplify the “network effect” and ecosystem with broad reach into the US$1.2 trillion corporate travel market.
SAP saw continued broad market adoption of SAP HANA, the Real-Time Business Platform, across all industries and regions as customers realize the compelling business benefits of SAP HANA. SAP HANA is at the core of the Company’s “Run Simple” strategy: integrating all SAP solutions on ONE business platform in the Cloud. SAP now has more than 4,100 SAP HANA customers and more than 1,450 customers for SAP Business Suite on HANA. SAP HANA is also evolving into the leading development platform with more than 1,600 startup companies building applications on SAP HANA.
| 2 | The annual revenue run rate is the total of third quarter 2014 non-IFRS cloud subscriptions and support revenue (€278 million) plus non-IFRS cloud-related professional services and other service revenue (€55 million) multiplied by 4. |
| 3 | Translated into USD for reader’s convenience based on $/€ exchange rate of $1.27/€1.00 at the end of the third quarter 2014. |
| 4 | Total of a period’s cloud subscriptions and support revenue and of the respective period’s change in the deferred cloud subscription and support revenue balance. In the third quarter 2014, Fieldglass contributed €19 million to SAP’s cloud subscriptions and support revenue (both on an IFRS and non-IFRS basis). |
| 5 | Network spend volume is the total value of purchase orders transacted on the Ariba Network in the trailing 12 months. |
| SAP Reports Third Quarter and Nine Months 2014 Results | Page 3 |
Third Quarter 2014 Regional Revenue
SAP had a solid performance in EMEA, despite uncertainties in the Ukraine and the Middle East. Non-IFRS software and software-related service revenue increased 8% (8% at constant currencies) with a strong performance in Germany in both software and cloud subscriptions and support revenue. Non-IFRS cloud subscriptions and support revenue in EMEA was a particular highlight, growing 59% (59% at constant currencies), showing exceptional cloud traction in Europe.
The Americas region saw a mixed performance in Latin America. Similar to other companies in the industry SAP is seeing a more difficult macro and political environment in Latin America, in particular in Brazil and Argentina, combined with execution issues. Non-IFRS software and software-related service revenue in the Americas increased 5% (5% at constant currencies). Non-IFRS cloud subscriptions and support revenue grew by 34% (34% at constant currencies).
The Asia Pacific Japan (APJ) region had a strong performance with 10% growth in non-IFRS software and software-related service revenue (10% at constant currencies). Non-IFRS cloud subscriptions and support revenue grew by 57% (56% at constant currencies). SAP achieved a turnaround in its business in Japan with solid double-digit growth.
| SAP Reports Third Quarter and Nine Months 2014 Results | Page 4 |
FINANCIAL RESULTS IN DETAIL
FINANCIAL HIGHLIGHTS – Third Quarter 2014
| Third Quarter 20141) | ||||||||||||||||||||||||||||
| IFRS | Non-IFRS2) | |||||||||||||||||||||||||||
| € million, unless otherwise stated |
Q3 2014 | Q3 2013 | % change |
Q3 2014 | Q3 2013 | % change |
% change const. curr. |
|||||||||||||||||||||
| Cloud subscriptions and support |
277 | 191 | 45 | 278 | 197 | 41 | 42 | |||||||||||||||||||||
| Software |
951 | 975 | –2 | 952 | 977 | –3 | –3 | |||||||||||||||||||||
| Support |
2,370 | 2,184 | 9 | 2,371 | 2,189 | 8 | 9 | |||||||||||||||||||||
| Software and support |
3,322 | 3,159 | 5 | 3,323 | 3,166 | 5 | 5 | |||||||||||||||||||||
| Software and software-related service revenue |
3,599 | 3,351 | 7 | 3,601 | 3,363 | 7 | 7 | |||||||||||||||||||||
| Total revenue |
4,254 | 4,045 | 5 | 4,256 | 4,057 | 5 | 5 | |||||||||||||||||||||
| Total operating expenses |
–3,097 | –3,003 | 3 | –2,901 | –2,761 | 5 | 6 | |||||||||||||||||||||
| Operating profit |
1,157 | 1,043 | 11 | 1,355 | 1,296 | 5 | 3 | |||||||||||||||||||||
| Operating margin (%) |
27.2 | 25.8 | 1.4pp | 31.8 | 32.0 | –0.1pp | –0.5pp | |||||||||||||||||||||
| Profit after tax |
881 | 762 | 16 | 1,010 | 933 | 8 | ||||||||||||||||||||||
| Basic earnings per share (€) |
0.74 | 0.64 | 15 | 0.84 | 0.78 | 8 | ||||||||||||||||||||||
| Number of employees (FTE) |
68,835 | 66,061 | 4 | N/A | N/A | N/A | N/A | |||||||||||||||||||||
| 1) | All figures are unaudited. |
| 2) | For a detailed description of SAP’s non-IFRS measures see Explanation of Non-IFRS Measures online. For a breakdown of the individual adjustments see page F8 in the appendix to this press release. |
IFRS cloud subscriptions and support revenue was €277 million (2013: €191 million), an increase of 45%. Non-IFRS cloud subscriptions and support revenue was €278 million (2013: €197 million), an increase of 41% (42% at constant currencies). IFRS software and support revenue was €3.32 billion (2013: €3.16 billion), an increase of 5%. Non-IFRS software and support revenue was €3.32 billion (2013: €3.17 billion), an increase of 5% (5% at constant currencies). IFRS software and software-related service revenue was €3.60 billion (2013: €3.35 billion), an increase of 7%. Non-IFRS software and software-related service revenue was €3.60 billion (2013: €3.36 billion), an increase of 7% (7% at constant currencies). IFRS total revenue was €4.25 billion (2013: €4.05 billion), an increase of 5%. Non-IFRS total revenue was €4.26 billion (2013: €4.06 billion), an increase of 5% (5% at constant currencies).
IFRS operating profit was €1.16 billion (2013: €1.04 billion), an increase of 11%. Non-IFRS operating profit was €1.36 billion (2013: €1.30 billion), an increase of 5% (3% at constant currencies). IFRS operating margin was 27.2% (2013: 25.8%), an increase of 1.4 percentage points. Non-IFRS operating margin was 31.8% (2013: 32.0%), a decrease of 0.1 percentage points (0.5 percentage points at constant currencies).
IFRS profit after tax was €881 million (2013: €762 million), an increase of 16%. Non-IFRS profit after tax was €1.01 billion (2013: €933 million), an increase of 8%. IFRS basic earnings per share was €0.74 (2013: €0.64), an increase of 15%. Non-IFRS basic earnings per share was €0.84 (2013: €0.78), an increase of 8%. The IFRS and non-IFRS effective tax rates in the third quarter of 2014 were 26.5% (2013: 26.4%) and 27.7% (2013: 27.6%), respectively.
| SAP Reports Third Quarter and Nine Months 2014 Results | Page 5 |
FINANCIAL HIGHLIGHTS – Nine Months 2014
| Nine Months 20141) | ||||||||||||||||||||||||||||
| IFRS | Non-IFRS2) | |||||||||||||||||||||||||||
| € million, unless otherwise stated |
9M 2014 | 9M 2013 | % change |
9M 2014 | 9M 2013 | % change |
% change const. curr. |
|||||||||||||||||||||
| Cloud subscriptions and support |
738 | 488 | 51 | 741 | 547 | 35 | 40 | |||||||||||||||||||||
| Software |
2,532 | 2,614 | –3 | 2,532 | 2,616 | –3 | –1 | |||||||||||||||||||||
| Support |
6,862 | 6,470 | 6 | 6,866 | 6,484 | 6 | 9 | |||||||||||||||||||||
| Software and support |
9,394 | 9,084 | 3 | 9,398 | 9,100 | 3 | 6 | |||||||||||||||||||||
| Software and software-related service revenue |
10,132 | 9,571 | 6 | 10,139 | 9,647 | 5 | 8 | |||||||||||||||||||||
| Total revenue |
12,103 | 11,708 | 3 | 12,110 | 11,784 | 3 | 5 | |||||||||||||||||||||
| Total operating expenses |
–9,525 | –9,031 | 5 | –8,600 | –8,400 | 2 | 5 | |||||||||||||||||||||
| Operating profit |
2,578 | 2,677 | –4 | 3,510 | 3,385 | 4 | 6 | |||||||||||||||||||||
| Operating margin (%) |
21.3 | 22.9 | –1.6pp | 29.0 | 28.7 | 0.3pp | 0.1pp | |||||||||||||||||||||
| Profit after tax |
1,971 | 2,006 | –2 | 2,615 | 2,474 | 6 | ||||||||||||||||||||||
| Basic earnings per share (€) |
1.65 | 1.68 | –2 | 2.19 | 2.08 | 6 | ||||||||||||||||||||||
| Number of employees (FTE) |
68,835 | 66,061 | 4 | N/A | N/A | N/A | N/A | |||||||||||||||||||||
| 1) | All figures are unaudited. |
| 2) | For a detailed description of SAP’s non-IFRS measures see Explanation of Non-IFRS Measures online. For a breakdown of the individual adjustments see page F8 in the appendix to this press release. |
IFRS cloud subscriptions and support revenue was €738 million (2013: €488 million), an increase of 51%. Non-IFRS cloud subscriptions and support revenue was €741 million (2013: €547 million), an increase of 35% (40% at constant currencies). IFRS software and support revenue was €9.39 billion (2013: €9.08 billion), an increase of 3%. Non-IFRS software and support revenue was €9.40 billion (2013: €9.10 billion), an increase of 3% (6% at constant currencies). IFRS software and software-related service revenue was €10.13 billion (2013: €9.57 billion), an increase of 6%. Non-IFRS software and software-related service revenue was €10.14 billion (2013: €9.65 billion), an increase of 5% (8% at constant currencies). IFRS total revenue was €12.10 billion (2013: €11.71 billion), an increase of 3%. Non-IFRS total revenue was €12.11 billion (2013: €11.78 billion), an increase of 3% (5% at constant currencies).
IFRS operating profit was €2.58 billion (2013: €2.68 billion), a decrease of 4%. Non-IFRS operating profit was €3.51 billion (2013: €3.39 billion), an increase of 4% (6% at constant currencies). IFRS operating margin was 21.3% (2013: 22.9%), a decrease of 1.6 percentage points. Non-IFRS operating margin was 29.0% (2013: 28.7%), an increase of 0.3 percentage points (0.1 percentage points at constant currencies).
IFRS profit after tax was €1.97 billion (2013: €2.01 billion), a decrease of 2%. Non-IFRS profit after tax was €2.62 billion (2013: €2.47 billion), an increase of 6%. IFRS basic earnings per share was €1.65 (2013: €1.68), a decrease of 2%. Non-IFRS basic earnings per share was €2.19 (2013: €2.08), an increase of 6%. The IFRS and non-IFRS effective tax rates in the nine months of 2014 were 24.8% (2013: 23.4%) and 26.4% (2013: 25.6%), respectively.
| SAP Reports Third Quarter and Nine Months 2014 Results | Page 6 |
Cash Flow – Nine Months 2014
Operating cash flow was €3.08 billion (2013: €3.04 billion), an increase of 1% year-over-year. Free cash flow was €2.61 billion (2013: €2.64 billion), a decrease of 1% year-over-year. Free cash flow was 22% of total revenue (2013: 23%). At September 30, 2014, SAP had a total group liquidity of €3.40 billion (December 31, 2013: €2.84 billion), which includes cash and cash equivalents and short term investments. Net liquidity at September 30, 2014 was -€1.01 billion compared to -€1.47 billion at December 31, 2013.
BUSINESS OUTLOOK 2014
The Company updated its outlook for the full year 2014.
Based on the strong momentum in SAP’s cloud business, the Company is raising its cloud outlook again and now expects full year 2014 non-IFRS cloud subscriptions and support revenue to be in a range of €1,040 – €1,070 million (previously €1,000 – €1,050 million) at constant currencies (2013: €757 million). The upper end of this range represents a growth rate of 41%. The Company continues to expect full year 2014 non-IFRS software and software-related service revenue to increase by 6% – 8% at constant currencies (2013: €14.03 billion).
With the customer-driven mix shift from upfront to cloud subscription revenue the Company now expects full-year 2014 non-IFRS operating profit to be in a range of €5.6 billion – €5.8 billion (previously €5.8 – €6.0 billion) at constant currencies (2013: €5.48 billion).
SAP anticipates the fast-growing cloud business along with growth in support revenue will drive a higher proportion of more predictable revenue in the future.
The 2014 business outlook does not include any contributions from the planned addition of Concur Technologies, Inc.
While the Company’s full-year 2014 business outlook is at constant currency, actual currency reported figures are expected to continue to be impacted by currency exchange rate fluctuations. If exchange rates remain at the September 2014 level for the rest of the year, the Company expects non-IFRS software and software-related service revenue and non-IFRS operating profit growth rates at actual currency to experience a positive currency impact of approximately 3 percentage points and 3 percentage points respectively for the fourth quarter of 2014 and a negative currency effect of approximately 1 percentage points and neutral impact respectively for the full year 2014.
| SAP Reports Third Quarter and Nine Months 2014 Results | Page 7 |
Additional Information
2014 revenue, profit and cash flow figures include the revenue and profits from hybris and Fieldglass. The comparative numbers for 2013 do not include Fieldglass and hybris was included first on August 1, 2013.
For a more detailed description of all of SAP’s non-IFRS measures and their limitations as well as our constant currency and free cash flow figures see Explanation of Non-IFRS Measures online.
# #
Third Quarter 2014 Interim Report
SAP’s third quarter 2014 Interim Report was published today and is available for download at www.sap.com/investor.
Webcast
SAP senior management will host a conference call for financial analysts and media on Monday, October 20th at 2:00 PM (CEST) / 1:00 PM (GMT) / 8:00 AM (EDT) / 5:00 AM (PDT). The conference call will be web cast live on the Company’s website at www.sap.com/investor and will be available for replay.
About SAP
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 263,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.
# # #
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| SAP Reports Third Quarter and Nine Months 2014 Results | Page 8 |
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Appendix – Financial Information to Follow
FINANCIAL INFORMATION
FOR THE THIRD QUARTER 2014
(Condensed and Unaudited)
| Page | ||
| Financial Statements (IFRS, Unaudited) |
||
| Consolidated Income Statements |
F1-F2 | |
| Consolidated Statements of Financial Position |
F3 | |
| Consolidated Statements of Cash Flows |
F4 | |
| Supplementary Financial Information (Unaudited) |
||
| Reconciliation from Non-IFRS Numbers to IFRS Numbers |
F5-F8 | |
| Explanation of Non-IFRS Adjustments |
F8 | |
| Calculated Cloud Billings |
F9 | |
| Revenue by Region |
F10-F11 | |
Financial Statements (IFRS, Unaudited)
CONSOLIDATED INCOME STATEMENTS OF SAP GROUP – QUARTER
For the three months ended September 30
| € millions, unless otherwise stated |
Note |
2014 | 2013 | Change in % |
||||||||||
| Cloud subscriptions and support |
277 | 191 | 45 | |||||||||||
| Software |
951 | 975 | –2 | |||||||||||
| Support |
2,370 | 2,184 | 9 | |||||||||||
| Software and support |
3,322 | 3,159 | 5 | |||||||||||
| Software and software-related service revenue |
3,599 | 3,351 | 7 | |||||||||||
| Professional services and other service revenue |
(5) | 655 | 695 | –6 | ||||||||||
| Total revenue |
4,254 | 4,045 | 5 | |||||||||||
| Cost of software and software-related services |
(6) | –699 | –636 | 10 | ||||||||||
| Cost of professional services and other services |
–586 | –605 | –3 | |||||||||||
| Total cost of revenue |
–1,285 | –1,241 | 3 | |||||||||||
| Gross profit |
2,970 | 2,804 | 6 | |||||||||||
| Research and development |
–545 | –552 | –1 | |||||||||||
| Sales and marketing |
–1,018 | –986 | 3 | |||||||||||
| General and administration |
–190 | –207 | –8 | |||||||||||
| Restructuring |
–43 | –17 | >100 | |||||||||||
| TomorrowNow and Versata litigation |
–17 | 0 | <-100 | |||||||||||
| Other operating income/expense, net |
1 | 0 | >100 | |||||||||||
| Total operating expenses |
–3,097 | –3,003 | 3 | |||||||||||
| Operating profit |
1,157 | 1,043 | 11 | |||||||||||
| Other non-operating income/expense, net |
51 | –1 | <-100 | |||||||||||
| Finance income |
30 | 38 | –22 | |||||||||||
| Finance costs |
–39 | –45 | –13 | |||||||||||
| Financial income, net |
–9 | –7 | 40 | |||||||||||
| Profit before tax |
1,199 | 1,035 | 16 | |||||||||||
| Income tax TomorrowNow and Versata litigation |
9 | 0 | <-100 | |||||||||||
| Other income tax expense |
–327 | –274 | 19 | |||||||||||
| Income tax expense |
(8) | –318 | –274 | 16 | ||||||||||
| Profit after tax |
881 | 762 | 16 | |||||||||||
| Profit attributable to non-controlling interests |
1 | 0 | <-100 | |||||||||||
| Profit attributable to owners of parent |
880 | 762 | 15 | |||||||||||
| Earnings per share, basic (in €)* |
(9) | 0.74 | 0.64 | 15 | ||||||||||
| Earnings per share, diluted (in €)* |
(9) | 0.73 | 0.64 | 15 | ||||||||||
| * | For the three months ended September 30, 2014 and 2013, the weighted average number of shares was 1,195 million (diluted 1,198 million) and 1,193 million (diluted: 1,195 million), respectively (treasury stock excluded). |
Due to rounding, numbers may not add up precisely.
F1
CONSOLIDATED INCOME STATEMENTS OF SAP GROUP – NINE MONTHS
For the nine months ended September 30
| € millions, unless otherwise stated |
Note |
2014 | 2013 | Change in % |
||||||||||
| Cloud subscriptions and support |
738 | 488 | 51 | |||||||||||
| Software |
2,532 | 2,614 | –3 | |||||||||||
| Support |
6,862 | 6,470 | 6 | |||||||||||
| Software and support |
9,394 | 9,084 | 3 | |||||||||||
| Software and software-related service revenue |
10,132 | 9,571 | 6 | |||||||||||
| Professional services and other service revenue |
(5) | 1,971 | 2,137 | –8 | ||||||||||
| Total revenue |
12,103 | 11,708 | 3 | |||||||||||
| Cost of software and software-related services |
(6) | –2,042 | –1,870 | 9 | ||||||||||
| Cost of professional services and other services |
–1,768 | –1,820 | –3 | |||||||||||
| Total cost of revenue |
–3,810 | –3,690 | 3 | |||||||||||
| Gross profit |
8,293 | 8,019 | 3 | |||||||||||
| Research and development |
–1,661 | –1,676 | –1 | |||||||||||
| Sales and marketing |
–3,035 | –3,021 | 0 | |||||||||||
| General and administration |
–612 | –635 | –4 | |||||||||||
| Restructuring |
–97 | –47 | >100 | |||||||||||
| TomorrowNow and Versata litigation |
–307 | 32 | <-100 | |||||||||||
| Other operating income/expense, net |
–4 | 6 | <-100 | |||||||||||
| Total operating expenses |
–9,525 | –9,031 | 5 | |||||||||||
| Operating profit |
2,578 | 2,677 | –4 | |||||||||||
| Other non-operating income/expense, net |
44 | –14 | <-100 | |||||||||||
| Finance income |
99 | 94 | 5 | |||||||||||
| Finance costs |
–100 | –138 | –28 | |||||||||||
| Financial income, net |
–1 | –44 | –98 | |||||||||||
| Profit before tax |
2,621 | 2,620 | 0 | |||||||||||
| Income tax TomorrowNow and Versata litigation |
86 | –9 | <-100 | |||||||||||
| Other income tax expense |
–736 | –605 | 22 | |||||||||||
| Income tax expense |
(8) | –650 | –614 | 6 | ||||||||||
| Profit after tax |
1,971 | 2,006 | –2 | |||||||||||
| Profit attributable to non-controlling interests |
0 | 0 | –80 | |||||||||||
| Profit attributable to owners of parent |
1,971 | 2,006 | –2 | |||||||||||
| Earnings per share, basic (in €)* |
(9) | 1.65 | 1.68 | –2 | ||||||||||
| Earnings per share, diluted (in €)* |
(9) | 1.65 | 1.68 | –2 | ||||||||||
| * | For the nine months ended September 30, 2014 and 2013, the weighted average number of shares was 1,194 million (diluted 1,197 million) and 1,193 million (diluted: 1,195 million), respectively (treasury stock excluded). |
Due to rounding, numbers may not add up precisely.
F2
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION OF SAP GROUP
as at September 30, 2014 and December 31, 2013
| € millions |
Notes | 2014 | 2013 | |||||||
| Cash and cash equivalents |
3,354 | 2,748 | ||||||||
| Other financial assets |
(10) | 461 | 251 | |||||||
| Trade and other receivables |
(11) | 3,502 | 3,864 | |||||||
| Other non-financial assets |
471 | 346 | ||||||||
| Tax assets |
213 | 142 | ||||||||
| Total current assets |
8,001 | 7,351 | ||||||||
| Goodwill |
15,088 | 13,690 | ||||||||
| Intangible assets |
2,953 | 2,954 | ||||||||
| Property, plant, and equipment |
1,916 | 1,820 | ||||||||
| Other financial assets |
(10) | 815 | 607 | |||||||
| Trade and other receivables |
(11) | 85 | 98 | |||||||
| Other non-financial assets |
134 | 107 | ||||||||
| Tax assets |
237 | 172 | ||||||||
| Deferred tax assets |
364 | 292 | ||||||||
| Total non-current assets |
21,592 | 19,739 | ||||||||
| Total assets |
29,593 | 27,091 | ||||||||
as at September 30, 2014 and December 31, 2013
| € millions |
Notes | 2014 | 2013 | |||||||
| Trade and other payables |
961 | 850 | ||||||||
| Tax liabilities |
209 | 433 | ||||||||
| Financial liabilities |
(12) | 744 | 748 | |||||||
| Other non-financial liabilities |
1,881 | 2,263 | ||||||||
| Provision TomorrowNow and Versata litigation |
284 | 223 | ||||||||
| Other provisions |
465 | 422 | ||||||||
| Provisions |
749 | 645 | ||||||||
| Deferred income |
(13) | 2,503 | 1,408 | |||||||
| Total current liabilities |
7,048 | 6,347 | ||||||||
| Trade and other payables |
49 | 45 | ||||||||
| Tax liabilities |
345 | 319 | ||||||||
| Financial liabilities |
(12) | 3,960 | 3,758 | |||||||
| Other non-financial liabilities |
122 | 112 | ||||||||
| Provisions |
143 | 278 | ||||||||
| Deferred tax liabilities |
128 | 110 | ||||||||
| Deferred income |
(13) | 68 | 74 | |||||||
| Total non-current liabilities |
4,816 | 4,695 | ||||||||
| Total liabilities |
11,864 | 11,042 | ||||||||
| Issued capital |
1,229 | 1,229 | ||||||||
| Share premium |
598 | 551 | ||||||||
| Retained earnings |
17,025 | 16,258 | ||||||||
| Other components of equity |
98 | –718 | ||||||||
| Treasury shares |
–1,229 | –1,280 | ||||||||
| Equity attributable to owners of parent |
17,721 | 16,040 | ||||||||
| Non-controlling interests |
8 | 8 | ||||||||
| Total equity |
(14) | 17,729 | 16,048 | |||||||
| Total equity and liabilities |
29,593 | 27,091 | ||||||||
Due to rounding, numbers may not add up precisely.
F3
CONSOLIDATED STATEMENTS OF CASH FLOWS OF SAP GROUP
For the nine months ended September 30
| € millions |
2014 | 2013 | ||||||
| Profit after tax |
1,971 | 2,006 | ||||||
| Adjustments to reconcile profit after taxes to net cash provided by operating activities: |
||||||||
| Depreciation and amortization |
733 | 714 | ||||||
| Income tax expense |
650 | 614 | ||||||
| Financial income, net |
1 | 44 | ||||||
| Decrease/increase in sales and bad debt allowances on trade receivables |
29 | 44 | ||||||
| Other adjustments for non-cash items |
73 | 64 | ||||||
| Decrease/increase in trade and other receivables |
480 | 766 | ||||||
| Decrease/increase in other assets |
–315 | –180 | ||||||
| Decrease/increase in trade payables, provisions, and other liabilities |
–136 | –856 | ||||||
| Decrease/increase in deferred income |
914 | 898 | ||||||
| Cash outflows due to TomorrowNow and Versata litigation |
–233 | –1 | ||||||
| Interest paid |
–83 | –101 | ||||||
| Interest received |
46 | 50 | ||||||
| Income taxes paid, net of refunds |
–1,048 | –1,022 | ||||||
| Net cash flows from operating activities |
3,082 | 3,040 | ||||||
| Business combinations, net of cash and cash equivalents acquired |
–730 | –1,131 | ||||||
| Cash payments for derivative instruments related to business combinations |
–125 | 0 | ||||||
| Total cash outflows for business combinations, net of cash and cash equivalents acquired |
–855 | –1,131 | ||||||
| Purchase of intangible assets and property, plant, and equipment |
–472 | –401 | ||||||
| Proceeds from sales of intangible assets or property, plant, and equipment |
37 | 40 | ||||||
| Purchase of equity or debt instruments of other entities |
–726 | –1,358 | ||||||
| Proceeds from sales of equity or debt instruments of other entities |
704 | 1,311 | ||||||
| Net cash flows from investing activities |
–1,312 | –1,539 | ||||||
| Dividends paid |
–1,194 | –1,013 | ||||||
| Proceeds from reissuance of treasury shares |
45 | 36 | ||||||
| Proceeds from borrowings |
501 | 1,000 | ||||||
| Repayments of borrowings |
–586 | –624 | ||||||
| Net cash flows from financing activities |
–1,234 | –601 | ||||||
| Effect of foreign currency rates on cash and cash equivalents |
70 | –122 | ||||||
| Net decrease/increase in cash and cash equivalents |
606 | 778 | ||||||
| Cash and cash equivalents at the beginning of the period |
2,748 | 2,477 | ||||||
| Cash and cash equivalents at the end of the period |
3,354 | 3,255 | ||||||
Due to rounding, numbers may not add up precisely.
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 September 30 | ||||||||||||||||||||||||||||||||||||||||||||
| € millions, unless otherwise stated |
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||
| IFRS | Adj.* | Non- IFRS* |
Currency Impact** |
Non-IFRS Constant Currency** |
IFRS | Adj.* | Non- IFRS* |
IFRS | Non- IFRS* |
Non-IFRS Constant Currency** |
||||||||||||||||||||||||||||||||||
| Revenue Numbers |
||||||||||||||||||||||||||||||||||||||||||||
| Cloud subscriptions and support |
277 | 1 | 278 | 0 | 279 | 191 | 5 | 197 | 45 | 41 | 42 | |||||||||||||||||||||||||||||||||
| Software |
951 | 0 | 952 | –7 | 944 | 975 | 2 | 977 | –2 | –3 | –3 | |||||||||||||||||||||||||||||||||
| Support |
2,370 | 1 | 2,371 | 5 | 2,376 | 2,184 | 5 | 2,189 | 9 | 8 | 9 | |||||||||||||||||||||||||||||||||
| Software and support |
3,322 | 1 | 3,323 | –3 | 3,320 | 3,159 | 7 | 3,166 | 5 | 5 | 5 | |||||||||||||||||||||||||||||||||
| Software and software-related service revenue |
3,599 | 2 | 3,601 | –3 | 3,599 | 3,351 | 12 | 3,363 | 7 | 7 | 7 | |||||||||||||||||||||||||||||||||
| Professional services and other service revenue |
655 | 0 | 655 | –1 | 654 | 695 | 0 | 695 | –6 | –6 | –6 | |||||||||||||||||||||||||||||||||
| thereof cloud-related |
55 | 0 | 55 | 0 | 55 | 44 | 0 | 44 | 27 | 27 | 26 | |||||||||||||||||||||||||||||||||
| Total revenue |
4,254 | 2 | 4,256 | –3 | 4,253 | 4,045 | 12 | 4,057 | 5 | 5 | 5 | |||||||||||||||||||||||||||||||||
| Cloud subscriptions and support |
277 | 1 | 278 | 0 | 279 | 191 | 5 | 197 | 45 | 41 | 42 | |||||||||||||||||||||||||||||||||
| Cloud-related professional services revenue |
55 | 0 | 55 | 0 | 55 | 44 | 0 | 44 | 27 | 27 | 26 | |||||||||||||||||||||||||||||||||
| Cloud revenue |
333 | 1 | 334 | 0 | 334 | 235 | 5 | 240 | 42 | 39 | 39 | |||||||||||||||||||||||||||||||||
| Operating Expense Numbers |
||||||||||||||||||||||||||||||||||||||||||||
| Cost of software and software-related services |
–699 | 80 | –618 | –636 | 92 | –544 | 10 | 14 | ||||||||||||||||||||||||||||||||||||
| thereof cloud |
–132 | 22 | –110 | –77 | 21 | –56 | 71 | 97 | ||||||||||||||||||||||||||||||||||||
| Cost of professional services and other services |
–586 | 16 | –570 | –605 | 34 | –571 | –3 | 0 | ||||||||||||||||||||||||||||||||||||
| Total cost of revenue |
–1,285 | 97 | –1,188 | –1,241 | 126 | –1,115 | 3 | 7 | ||||||||||||||||||||||||||||||||||||
| Gross profit |
2,970 | 99 | 3,068 | 2,804 | 138 | 2,942 | 6 | 4 | ||||||||||||||||||||||||||||||||||||
| Research and development |
–545 | 13 | –532 | –552 | 31 | –521 | –1 | 2 | ||||||||||||||||||||||||||||||||||||
| Sales and marketing |
–1,018 | 24 | –994 | –986 | 46 | –940 | 3 | 6 | ||||||||||||||||||||||||||||||||||||
| General and administration |
–190 | 3 | –187 | –207 | 21 | –185 | –8 | 1 | ||||||||||||||||||||||||||||||||||||
| Restructuring |
–43 | 43 | 0 | –17 | 17 | 0 | >100 | 0 | ||||||||||||||||||||||||||||||||||||
| TomorrowNow and Versata litigation |
–17 | 17 | 0 | 0 | 0 | 0 | <-100 | 0 | ||||||||||||||||||||||||||||||||||||
| Other operating income/expense, net |
1 | 0 | 1 | 0 | 0 | 0 | >100 | >100 | ||||||||||||||||||||||||||||||||||||
| Total operating expenses |
–3,097 | 196 | –2,901 | –12 | –2,913 | –3,003 | 242 | –2,761 | 3 | 5 | 6 | |||||||||||||||||||||||||||||||||
F5
| For the three months ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||
| € millions, unless otherwise stated |
2014 | 2013 | Change in % | |||||||||||||||||||||||||||||||||||||||||
| IFRS | Adj.* | Non- IFRS* |
Currency Impact** |
Non-IFRS Constant Currency** |
IFRS | Adj.* | Non- IFRS* |
IFRS | Non- IFRS* |
Non-IFRS Constant Currency** |
||||||||||||||||||||||||||||||||||
| Profit Numbers |
||||||||||||||||||||||||||||||||||||||||||||
| Operating profit |
1,157 | 198 | 1,355 | –16 | 1,340 | 1,043 | 253 | 1,296 | 11 | 5 | 3 | |||||||||||||||||||||||||||||||||
| Other non-operating income/expense, net |
51 | 0 | 51 | –1 | 0 | –1 | <-100 | <-100 | ||||||||||||||||||||||||||||||||||||
| Finance income |
30 | 0 | 30 | 38 | 0 | 38 | –22 | –22 | ||||||||||||||||||||||||||||||||||||
| Finance costs |
–39 | 0 | –39 | –45 | 0 | –45 | –13 | –13 | ||||||||||||||||||||||||||||||||||||
| Financial income, net |
–9 | 0 | –9 | –7 | 0 | –7 | 40 | 40 | ||||||||||||||||||||||||||||||||||||
| Profit before tax |
1,199 | 198 | 1,397 | 1,035 | 253 | 1,289 | 16 | 8 | ||||||||||||||||||||||||||||||||||||
| Income tax TomorrowNow and Versata litigation |
9 | –9 | 0 | 0 | 0 | 0 | <-100 | 0 | ||||||||||||||||||||||||||||||||||||
| Other income tax expense |
–327 | –60 | –387 | –274 | –82 | –355 | 19 | 9 | ||||||||||||||||||||||||||||||||||||
| Income tax expense |
–318 | –69 | –387 | –274 | –82 | –355 | 16 | 9 | ||||||||||||||||||||||||||||||||||||
| Profit after tax |
881 | 129 | 1,010 | 762 | 172 | 933 | 16 | 8 | ||||||||||||||||||||||||||||||||||||
| Profit attributable to non-controlling interests |
1 | 0 | 1 | 0 | 0 | 0 | <-100 | <-100 | ||||||||||||||||||||||||||||||||||||
| Profit attributable to owners of parent |
880 | 129 | 1,009 | 762 | 172 | 933 | 15 | 8 | ||||||||||||||||||||||||||||||||||||
| Key Ratios |
||||||||||||||||||||||||||||||||||||||||||||
| Operating margin (in %) |
27.2 | 31.8 | 31.5 | 25.8 | 32.0 | 1.4pp | –0.1pp | –0.5pp | ||||||||||||||||||||||||||||||||||||
| Effective tax rate (in %) |
26.5 | 27.7 | 26.4 | 27.6 | 0.1pp | 0.1pp | ||||||||||||||||||||||||||||||||||||||
| Earnings per share, basic (in €) |
0.74 | 0.84 | 0.64 | 0.78 | 15 | 8 | ||||||||||||||||||||||||||||||||||||||
F6
| For the nine months ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||
| € millions, unless otherwise stated |
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||
| IFRS | Adj.* | Non-IFRS* | Currency Impact** |
Non-IFRS Constant Currency** |
IFRS | Adj.* | Non-IFRS* | IFRS | Non-IFRS* | Non-IFRS Constant Currency** |
||||||||||||||||||||||||||||||||||
| Revenue Numbers |
||||||||||||||||||||||||||||||||||||||||||||
| Cloud subscriptions and support |
738 | 3 | 741 | 22 | 764 | 488 | 60 | 547 | 51 | 35 | 40 | |||||||||||||||||||||||||||||||||
| Software |
2,532 | 0 | 2,532 | 59 | 2,591 | 2,614 | 2 | 2,616 | –3 | –3 | –1 | |||||||||||||||||||||||||||||||||
| Support |
6,862 | 3 | 6,866 | 177 | 7,043 | 6,470 | 14 | 6,484 | 6 | 6 | 9 | |||||||||||||||||||||||||||||||||
| Software and support |
9,394 | 4 | 9,398 | 237 | 9,635 | 9,084 | 16 | 9,100 | 3 | 3 | 6 | |||||||||||||||||||||||||||||||||
| Software and software-related service revenue |
10,132 | 7 | 10,139 | 259 | 10,398 | 9,571 | 76 | 9,647 | 6 | 5 | 8 | |||||||||||||||||||||||||||||||||
| Professional services and other service revenue |
1,971 | 0 | 1,971 | 56 | 2,026 | 2,137 | 0 | 2,137 | –8 | –8 | –5 | |||||||||||||||||||||||||||||||||
| thereof cloud-related |
153 | 0 | 153 | 4 | 157 | 126 | 0 | 126 | 21 | 21 | 25 | |||||||||||||||||||||||||||||||||
| Total revenue |
12,103 | 7 | 12,110 | 315 | 12,425 | 11,708 | 76 | 11,784 | 3 | 3 | 5 | |||||||||||||||||||||||||||||||||
| Cloud subscriptions and support |
738 | 3 | 741 | 22 | 764 | 488 | 60 | 547 | 51 | 35 | 40 | |||||||||||||||||||||||||||||||||
| Cloud-related professional services revenue |
153 | 0 | 153 | 4 | 157 | 126 | 0 | 126 | 21 | 21 | 25 | |||||||||||||||||||||||||||||||||
| Cloud revenue |
891 | 3 | 894 | 26 | 920 | 613 | 60 | 673 | 45 | 33 | 37 | |||||||||||||||||||||||||||||||||
| Operating Expense Numbers |
||||||||||||||||||||||||||||||||||||||||||||
| Cost of software and software-related services |
–2,042 | 245 | –1,796 | –1,870 | 266 | –1,604 | 9 | 12 | ||||||||||||||||||||||||||||||||||||
| thereof cloud |
–320 | 58 | –262 | –231 | 79 | –152 | 39 | 73 | ||||||||||||||||||||||||||||||||||||
| Cost of professional services and other services |
–1,768 | 74 | –1,694 | –1,820 | 85 | –1,735 | –3 | –2 | ||||||||||||||||||||||||||||||||||||
| Total cost of revenue |
–3,810 | 319 | –3,490 | –3,690 | 351 | –3,339 | 3 | 5 | ||||||||||||||||||||||||||||||||||||
| Gross profit |
8,293 | 327 | 8,620 | 8,019 | 426 | 8,445 | 3 | 2 | ||||||||||||||||||||||||||||||||||||
| Research and development |
–1,661 | 71 | –1,590 | –1,676 | 69 | –1,607 | –1 | –1 | ||||||||||||||||||||||||||||||||||||
| Sales and marketing |
–3,035 | 101 | –2,934 | –3,021 | 142 | –2,879 | 0 | 2 | ||||||||||||||||||||||||||||||||||||
| General and administration |
–612 | 30 | –582 | –635 | 55 | –581 | –4 | 0 | ||||||||||||||||||||||||||||||||||||
| Restructuring |
–97 | 97 | 0 | –47 | 47 | 0 | >100 | 0 | ||||||||||||||||||||||||||||||||||||
| TomorrowNow and Versata litigation |
–307 | 307 | 0 | 32 | –32 | 0 | <-100 | 0 | ||||||||||||||||||||||||||||||||||||
| Other operating income/expense, net |
–4 | 0 | –4 | 6 | 0 | 6 | <-100 | <-100 | ||||||||||||||||||||||||||||||||||||
| Total operating expenses |
–9,525 | 926 | –8,600 | –250 | –8,849 | –9,031 | 632 | –8,400 | 5 | 2 | 5 | |||||||||||||||||||||||||||||||||
F7
| For the nine months ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||
| € millions, unless otherwise stated |
2014 | 2013 | Change in % | |||||||||||||||||||||||||||||||||||||||||
| IFRS | Adj.* | Non-IFRS* | Currency Impact** |
Non-IFRS Constant Currency** |
IFRS | Adj.* | Non-IFRS* | IFRS | Non-IFRS* | Non-IFRS Constant Currency** |
||||||||||||||||||||||||||||||||||
| Profit Numbers |
||||||||||||||||||||||||||||||||||||||||||||
| Operating profit |
2,578 | 933 | 3,510 | 65 | 3,575 | 2,677 | 707 | 3,385 | –4 | 4 | 6 | |||||||||||||||||||||||||||||||||
| Other non-operating income/expense, net |
44 | 0 | 44 | –14 | 0 | –14 | <-100 | <-100 | ||||||||||||||||||||||||||||||||||||
| Finance income |
99 | 0 | 99 | 94 | 0 | 94 | 5 | 5 | ||||||||||||||||||||||||||||||||||||
| Finance costs |
–100 | 0 | –100 | –138 | 0 | –138 | –28 | –28 | ||||||||||||||||||||||||||||||||||||
| Financial income, net |
–1 | 0 | –1 | –44 | 0 | –44 | –98 | –98 | ||||||||||||||||||||||||||||||||||||
| Profit before tax |
2,621 | 933 | 3,554 | 2,620 | 707 | 3,327 | 0 | 7 | ||||||||||||||||||||||||||||||||||||
| Income tax TomorrowNow and Versata litigation |
86 | –86 | 0 | –9 | 9 | 0 | <-100 | 0 | ||||||||||||||||||||||||||||||||||||
| Other income tax expense |
–736 | –203 | –939 | –605 | –248 | –853 | 22 | 10 | ||||||||||||||||||||||||||||||||||||
| Income tax expense |
–650 | –289 | –939 | –614 | –239 | –853 | 6 | 10 | ||||||||||||||||||||||||||||||||||||
| Profit after tax |
1,971 | 644 | 2,615 | 2,006 | 468 | 2,474 | –2 | 6 | ||||||||||||||||||||||||||||||||||||
| Profit attributable to non-controlling interests |
0 | 0 | 0 | 0 | 0 | 0 | –80 | –80 | ||||||||||||||||||||||||||||||||||||
| Profit attributable to owners of parent |
1,971 | 644 | 2,615 | 2,006 | 468 | 2,475 | –2 | 6 | ||||||||||||||||||||||||||||||||||||
| Key Ratios |
||||||||||||||||||||||||||||||||||||||||||||
| Operating margin (in %) |
21.3 | 29.0 | 28.8 | 22.9 | 28.7 | –1.6pp | 0.3pp | 0.1pp | ||||||||||||||||||||||||||||||||||||
| Effective tax rate (in %) |
24.8 | 26.4 | 23.4 | 25.6 | 1.4pp | 0.8pp | ||||||||||||||||||||||||||||||||||||||
| Earnings per share, basic (in €) |
1.65 | 2.19 | 1.68 | 2.08 | –2 | 6 | ||||||||||||||||||||||||||||||||||||||
| * | Adjustments in the revenue line items are for support revenue, cloud subscriptions and support revenue, and other similarly recurring revenues that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges, share-based payment expenses, restructuring expenses, as well as the TomorrowNow and Versata litigation expenses. |
| ** | Constant currency revenue and operating income figures are calculated by translating revenue and operating income of the current period using the average exchange rates from the previous year’s respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s respective period. |
For a more detailed description of these adjustments and their limitations as well as our constant currency figures, see our Web site www.sap.com/corporate-en/investors/newsandreports/reporting-framework.epx under “Non-IFRS Measures and Estimates”.
Due to rounding, numbers may not add up precisely.
EXPLANATION OF NON-IFRS ADJUSTMENTS
| € millions, unless otherwise stated |
Q3 2014 | 1/1
–9/30/ 2014 |
Q3 2013 | 1/1
–9/30/ 2013 |
||||||||||||
| Operating profit (IFRS) |
1,157 | 2,578 | 1,043 | 2,677 | ||||||||||||
| Revenue adjustments |
2 | 7 | 12 | 76 | ||||||||||||
| Adjustment for acquisition-related charges |
141 | 402 | 142 | 424 | ||||||||||||
| Adjustment for share-based payment expenses |
–5 | 119 | 83 | 192 | ||||||||||||
| Adjustment for restructuring |
43 | 97 | 17 | 47 | ||||||||||||
| Adjustment for TomorrowNow and Versata litigation |
17 | 307 | 0 | –32 | ||||||||||||
| Operating expense adjustments |
196 | 926 | 242 | 632 | ||||||||||||
| Operating profit adjustments |
198 | 933 | 253 | 707 | ||||||||||||
| Operating profit (Non-IFRS) |
1,355 | 3,510 | 1,296 | 3,385 | ||||||||||||
Due to rounding, numbers may not add up precisely.
F8
CALCULATED CLOUD BILLINGS
The following table presents the calculated cloud billings metric which we define as the total of a period’s cloud subscription and support revenue and of the respective period’s change in the deferred cloud subscription and support revenue balance. The table also reconciles the non-IFRS calculated cloud billings metric (including our non-IFRS at constant currency metric) to the respective IFRS based calculated cloud billings metric.
| For the three months ended September 30 | ||||||||||||||||||||||||||||||||||||||||
| € millions, unless otherwise stated |
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||
| IFRS | Adj.* | Non- IFRS* |
Currency Impact** |
Non- IFRS Constant Currency** |
IFRS | Adj.* | Non-IFRS* | Currency Impact** |
Non-IFRS Constant Currency** |
|||||||||||||||||||||||||||||||
| Cloud subscriptions and support |
277 | 1 | 278 | 0 | 279 | 191 | 5 | 197 | 0 | 197 | ||||||||||||||||||||||||||||||
| Closing balance deferred cloud subscriptions and support |
498 | 0 | 498 | –14 | 483 | 376 | 6 | 382 | 14 | 396 | ||||||||||||||||||||||||||||||
| Opening balance deferred cloud subscriptions and support |
445 | 3 | 448 | 20 | 468 | 354 | 7 | 361 | 0 | 361 | ||||||||||||||||||||||||||||||
| Change in deferred cloud subscriptions and support |
53 | –3 | 50 | –35 | 16 | 22 | –1 | 21 | 14 | 35 | ||||||||||||||||||||||||||||||
| Calculated cloud billings |
330 | –2 | 328 | –34 | 294 | 213 | 4 | 218 | 14 | 232 | ||||||||||||||||||||||||||||||
| Year-over-year changes (2014 vs. 2013, in %) |
55 | % | 51 | % | 27 | % | ||||||||||||||||||||||||||||||||||
| * | Adjustments in the revenue and deferred revenue line items are for cloud subscriptions and support revenue, and other similarly recurring revenues that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. |
| ** | 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 deferred revenue balances are calculated by translating the current period’s opening and closing deferred revenue balances as well as the comparative period’s closing deferred revenue balance using the opening exchange rates of the comparative 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.
F9
REVENUE BY REGION
The following tables present our IFRS and non-IFRS revenue by region based on customer location. The tables also present 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.
| For the three months ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||
| € millions |
2014 | 2013 | Change in % | |||||||||||||||||||||||||||||||||||||||||
| IFRS | Adj.* | Non-IFRS* | Currency Impact** |
Non-IFRS Constant Currency** |
IFRS | Adj.* | Non-IFRS* | IFRS | Non-IFRS* | Non-IFRS Constant Currency** |
||||||||||||||||||||||||||||||||||
| Cloud subscriptions and support revenue by region |
||||||||||||||||||||||||||||||||||||||||||||
| EMEA |
71 | 0 | 71 | 0 | 71 | 45 | 0 | 45 | 59 | 59 | 59 | |||||||||||||||||||||||||||||||||
| Americas |
181 | 1 | 181 | 0 | 182 | 130 | 5 | 136 | 39 | 34 | 34 | |||||||||||||||||||||||||||||||||
| APJ |
26 | 0 | 26 | 0 | 26 | 16 | 0 | 16 | 57 | 57 | 56 | |||||||||||||||||||||||||||||||||
| Cloud subscriptions and support revenue |
277 | 1 | 278 | 0 | 279 | 191 | 5 | 197 | 45 | 41 | 42 | |||||||||||||||||||||||||||||||||
| Software and software-related service revenue by region |
||||||||||||||||||||||||||||||||||||||||||||
| EMEA |
1,668 | 1 | 1,669 | 0 | 1,669 | 1,548 | 3 | 1,551 | 8 | 8 | 8 | |||||||||||||||||||||||||||||||||
| Americas |
1,337 | 1 | 1,338 | –2 | 1,336 | 1,264 | 9 | 1,273 | 6 | 5 | 5 | |||||||||||||||||||||||||||||||||
| APJ |
594 | 0 | 595 | –1 | 594 | 539 | 0 | 539 | 10 | 10 | 10 | |||||||||||||||||||||||||||||||||
| Software and software-related service revenue |
3,599 | 2 | 3,601 | –3 | 3,599 | 3,351 | 12 | 3,363 | 7 | 7 | 7 | |||||||||||||||||||||||||||||||||
| Total revenue by region |
||||||||||||||||||||||||||||||||||||||||||||
| Germany |
639 | 0 | 639 | 0 | 639 | 599 | 1 | 600 | 7 | 7 | 6 | |||||||||||||||||||||||||||||||||
| Rest of EMEA |
1,342 | 1 | 1,342 | 0 | 1,342 | 1,277 | 2 | 1,279 | 5 | 5 | 5 | |||||||||||||||||||||||||||||||||
| Total EMEA |
1,981 | 1 | 1,982 | –1 | 1,981 | 1,877 | 3 | 1,879 | 6 | 5 | 5 | |||||||||||||||||||||||||||||||||
| United States |
1,193 | 1 | 1,195 | –6 | 1,188 | 1,100 | 8 | 1,107 | 9 | 8 | 7 | |||||||||||||||||||||||||||||||||
| Rest of Americas |
391 | 0 | 391 | 5 | 396 | 440 | 1 | 442 | –11 | –11 | –10 | |||||||||||||||||||||||||||||||||
| Total Americas |
1,585 | 1 | 1,586 | –1 | 1,584 | 1,540 | 9 | 1,549 | 3 | 2 | 2 | |||||||||||||||||||||||||||||||||
| Japan |
172 | 0 | 172 | 8 | 181 | 159 | 0 | 159 | 9 | 9 | 14 | |||||||||||||||||||||||||||||||||
| Rest of APJ |
516 | 0 | 516 | –9 | 506 | 470 | 0 | 470 | 10 | 10 | 8 | |||||||||||||||||||||||||||||||||
| Total APJ |
688 | 0 | 688 | –1 | 687 | 629 | 0 | 629 | 9 | 9 | 9 | |||||||||||||||||||||||||||||||||
| Total revenue |
4,254 | 2 | 4,256 | –3 | 4,253 | 4,045 | 12 | 4,057 | 5 | 5 | 5 | |||||||||||||||||||||||||||||||||
F10
| For the nine months ended September 30 | ||||||||||||||||||||||||||||||||||||||||||||
| € millions |
2014 | 2013 | Change in % | |||||||||||||||||||||||||||||||||||||||||
| IFRS | Adj.* | Non-IFRS* | Currency Impact** |
Non-IFRS Constant Currency** |
IFRS | Adj.* | Non-IFRS* | IFRS | Non-IFRS* | Non-IFRS Constant Currency** |
||||||||||||||||||||||||||||||||||
| Cloud subscriptions and support revenue by region |
||||||||||||||||||||||||||||||||||||||||||||
| EMEA |
185 | 0 | 185 | 3 | 189 | 126 | 0 | 125 | 47 | 47 | 50 | |||||||||||||||||||||||||||||||||
| Americas |
488 | 3 | 491 | 16 | 507 | 316 | 60 | 376 | 54 | 30 | 35 | |||||||||||||||||||||||||||||||||
| APJ |
65 | 0 | 65 | 3 | 68 | 46 | 0 | 46 | 43 | 43 | 49 | |||||||||||||||||||||||||||||||||
| Cloud subscriptions and support revenue |
738 | 3 | 741 | 22 | 764 | 488 | 60 | 547 | 51 | 35 | 40 | |||||||||||||||||||||||||||||||||
| Software and software-related service revenue by region |
||||||||||||||||||||||||||||||||||||||||||||
| EMEA |
4,738 | 3 | 4,741 | 41 | 4,783 | 4,426 | 3 | 4,429 | 7 | 7 | 8 | |||||||||||||||||||||||||||||||||
| Americas |
3,807 | 4 | 3,812 | 137 | 3,949 | 3,619 | 73 | 3,692 | 5 | 3 | 7 | |||||||||||||||||||||||||||||||||
| APJ |
1,586 | 0 | 1,586 | 80 | 1,667 | 1,526 | 0 | 1,526 | 4 | 4 | 9 | |||||||||||||||||||||||||||||||||
| Software and software-related service revenue |
10,132 | 7 | 10,139 | 259 | 10,398 | 9,571 | 76 | 9,647 | 6 | 5 | 8 | |||||||||||||||||||||||||||||||||
| Total revenue by region |
||||||||||||||||||||||||||||||||||||||||||||
| Germany |
1,771 | 0 | 1,772 | 0 | 1,772 | 1,720 | 1 | 1,721 | 3 | 3 | 3 | |||||||||||||||||||||||||||||||||
| Rest of EMEA |
3,944 | 2 | 3,946 | 50 | 3,997 | 3,704 | 2 | 3,706 | 6 | 6 | 8 | |||||||||||||||||||||||||||||||||
| Total EMEA |
5,715 | 3 | 5,718 | 51 | 5,769 | 5,424 | 3 | 5,427 | 5 | 5 | 6 | |||||||||||||||||||||||||||||||||
| United States |
3,419 | 4 | 3,422 | 92 | 3,515 | 3,223 | 71 | 3,294 | 6 | 4 | 7 | |||||||||||||||||||||||||||||||||
| Rest of Americas |
1,131 | 0 | 1,132 | 78 | 1,209 | 1,256 | 2 | 1,258 | –10 | –10 | –4 | |||||||||||||||||||||||||||||||||
| Total Americas |
4,550 | 4 | 4,554 | 170 | 4,724 | 4,479 | 73 | 4,552 | 2 | 0 | 4 | |||||||||||||||||||||||||||||||||
| Japan |
436 | 0 | 436 | 39 | 475 | 458 | 0 | 458 | –5 | –5 | 4 | |||||||||||||||||||||||||||||||||
| Rest of APJ |
1,401 | 0 | 1,402 | 55 | 1,457 | 1,347 | 0 | 1,347 | 4 | 4 | 8 | |||||||||||||||||||||||||||||||||
| Total APJ |
1,838 | 0 | 1,838 | 94 | 1,932 | 1,805 | 0 | 1,806 | 2 | 2 | 7 | |||||||||||||||||||||||||||||||||
| Total revenue |
12,103 | 7 | 12,110 | 315 | 12,425 | 11,708 | 76 | 11,784 | 3 | 3 | 5 | |||||||||||||||||||||||||||||||||
| * | Adjustments in the revenue line items are for support revenue, cloud subscriptions and support revenue, and other similarly recurring revenues that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. |
| ** | Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year’s respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s respective period. |
For a more detailed description of these adjustments and their limitations as well as our constant currency figures, see our Web site www.sap.com/corporate-en/investors/newsandreports/reporting-framework.epx under “Non-IFRS Measures and Estimates”.
Due to rounding, numbers may not add up precisely.
F11