Form 6-K

0001193125-15-015559.txt : 20150121 0001193125-15-015559.hdr.sgml : 20150121 20150121084337 ACCESSION NUMBER: 0001193125-15-015559 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20150121 FILED AS OF DATE: 20150121 DATE AS OF CHANGE: 20150121 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SAP SE CENTRAL INDEX KEY: 0001000184 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 000000000 STATE OF INCORPORATION: 2M FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14251 FILM NUMBER: 15537517 BUSINESS ADDRESS: STREET 1: DIETMAR-HOPP-ALLEE 16 CITY: WALLDORF STATE: 2M ZIP: 69190 BUSINESS PHONE: 0114962277 MAIL ADDRESS: STREET 1: DIETMAR-HOPP-ALLEE 16 CITY: WALLDORF STATE: 2M ZIP: 69190 FORMER COMPANY: FORMER CONFORMED NAME: SAP AG DATE OF NAME CHANGE: 20091023 FORMER COMPANY: FORMER CONFORMED NAME: SAP AKTIENGESELLSCHAFT SYSTEMS APPLICATIONS PRODUCTS IN DATA DATE OF NAME CHANGE: 19960807 6-K 1 d854663d6k.htm FORM 6-K Form 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

January 21, 2015

Commission file number:

1-14251

SAP SE

(Exact name of registrant as specified in its charter)

SAP EUROPEAN COMPANY

(Translation of registrant’s 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- .

TABLE OF CONTENTS


EXHIBITS			3
SIGNATURES			4
EXHIBIT INDEX			5
Exhibit 99.1

SAP SE

FORM 6-K

On January 20, 2015, SAP SE, (“SAP”), issued a press release (the “Press Release”) announcing SAP’s preliminary financial results for the fourth quarter and full year ended December 31, 2014. 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/investor) 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 SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including SAP’s most recent Annual Report on Form 20-F for 2013 filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

EXHIBITS


Exhibit No.		Exhibit

99.1		Press Release dated January 20, 2015

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


SAP AG
(Registrant)

By:	/s/ Christoph Huetten
	Name:	Dr. Christoph Huetten
	Title:	Chief Accounting Officer

By:	/s/ Christopher Sessar
	Name:	Dr. Christopher Sessar
	Title:	Head of Corporate External
		Reporting

Date: January 21, 2015

EXHIBIT INDEX


Exhibit No.		Exhibit

99.1		(i) Press Release dated January 20, 2015

EX-99.1 2 d854663dex991.htm EXHIBIT 99.1 Exhibit 99.1

Exhibit 99.1

LOGO

For Immediate Release

January 20, 2015

SAP Announces Preliminary Fourth Quarter and Full Year 2014 Results

SAP Expedites Transition to Cloud – Targets 7x Growth in Cloud to Reach Up To €28 Billion Total Revenue By 2020

•

Cloud Business Surges – Guidance Achieved as Non-IFRS Cloud Subscriptions and Support Revenue Jumped 72% in Fourth Quarter and Increased 45% in Full Year

•

Cloud Subscriptions and Support Backlog Increased 94%, Exceeding €2.3 Billion at Year-End

•

Strong HANA Momentum – More Than 5,800 HANA Customers and More Than 1,850 Suite on HANA Customers

•

Software and Software-Related Service Revenue Guidance Achieved Despite the Accelerated Shift from Upfront to More Ratable Revenue

•

Operating Profit Guidance Achieved While Significantly Expanding the Company’s Cloud Delivery Capabilities

•

Targeting €7.5 – €8.0 Billion in Cloud Subscriptions and Support Revenue and €26 – €28 Billion Total Revenue by 2020

WALLDORF, Germany – January 20, 2015 – SAP SE (NYSE: SAP) today announced its financial results for the fourth quarter and twelve months ended December 31, 2014.

BUSINESS HIGHLIGHTS IN THE FOURTH QUARTER AND FULL YEAR 2014

SAP delivered exceptionally strong growth in the cloud and continues to lead in this industry-wide transformation. Full year non-IFRS cloud subscriptions and support revenue increased 45% at actual and constant currencies to €1.10 billion¹.

The company also showed a solid software and software-related service revenue performance despite the accelerated shift from upfront software revenue to more subscription-based cloud revenue. Non-IFRS software and software-related service revenue grew 7% at constant currencies (6% at actual currencies to €14.87 billion) achieving the full year target of 6% – 8% growth at constant currencies. Non-IFRS operating profit increased by 3% at constant currencies to €5.63 billion (3% at actual currencies to €5.64 billion), achieving the full year outlook of €5.6 – €5.8 billion at constant currencies.

“In 2014 we delivered on our Run Simple strategy to help our customers transform their businesses. SAP’s strong growth is driven by the HANA platform, the broadest cloud portfolio and the largest business network in the world,” said Bill McDermott, CEO of SAP. “SAP powers the clear path to growth

¹ For the full year 2014, Fieldglass contributed €50 million and Concur contributed €45 million to SAP’s Non-IFRS cloud subscriptions and support revenue at constant currencies, representing a 13 percentage point contribution to SAP’s respective full year 2014 growth rate.


*SAP Reports Fourth Quarter and Twelve Months 2014 Results*		Page 2

for businesses in the 21st century: run real-time, run networked, run simple. We will continue to push relentlessly toward a much more predictable business model and are once again raising our cloud ambition to grow 7X from 2014 through 2020.”

“We had exceptional growth in our cloud business and have significantly lifted the total of cloud backlog and non-IFRS deferred cloud revenue to more than €3 billion. This is committed business that will drive strong cloud growth in the future,” said Luka Mucic, CFO of SAP. “We expect cloud subscriptions to exceed software license revenue in 2018. At that time SAP expects to reach a scale in its cloud business that will clear the way for accelerated operating profit expansion.”

SAP is the fastest growing enterprise cloud company at scale² with fourth quarter non-IFRS cloud subscriptions and support revenue increasing 72% year-over-year (59% at constant currencies). The annual total cloud revenue run rate now exceeds €1.7 billion³ or $2.0 billion⁴. Non-IFRS calculated cloud billings increased 104% (78% at constant currencies) in the fourth quarter⁵. Non-IFRS deferred cloud subscriptions and support revenue was €699 million as of December 31, 2014, a year-over-year increase of 56% (40% at constant currencies)⁶. The Company’s cloud subscriptions and support backlog⁷ as of December 31, 2014 was €2.3 billion, a year-over-year increase of 94%.

SAP’s acquisition of Concur in December 2014 propels the world’s largest business network into the $1.2 trillion corporate travel and expense market. More than 1.7 million connected companies trade over $700 billion of frictionless commerce⁸ on this network – more than Amazon, eBay and Alibaba all combined.

SAP’s intense focus on next-generation customer engagement is also fueling growth. Its hybris omni-channel e-commerce platform, combined with Cloud for Sales, once again saw strong revenue contribution in 2014 with triple-digit growth in software revenue and cloud subscriptions and support revenue combined.

SAP HANA, the platform for real-time business applications, had a phenomenal year and continues to be a major growth engine for SAP. The Company saw continued broad market adoption of SAP HANA across all industries and regions as customers recognize the compelling business benefits of SAP HANA. SAP now has more than 5,800 HANA customers and more than 1,850 customers for SAP Business Suite on HANA. SAP HANA is also evolving into a leading development platform.

In its services business, SAP is radically simplifing the way it engages with customers and delivers services to its customers: Under the new ONE Service approach, SAP provides one service portfolio, out of one global organization and under one contract. To execute on ONE Service SAP has combined all lines of services under one organizational umbrella.

² Compared to SAP’s peer group companies with an enterprise software annual cloud revenue run rate above €1 billion.

³ The annual revenue run rate is the fourth quarter 2014 non-IFRS cloud subscriptions and support revenue (€360 million) plus non-IFRS cloud-related professional services and other service revenue (€69 million) multiplied by 4.

⁴ Translated into USD for reader’s convenience based on $/€ exchange rate of $1.21/€1.00 at the end of the fourth quarter 2014.

⁵ The calculated billings numbers and respective growth rates reported herein update the preliminary numbers reported in the pre-release from January 12^th.

⁶ Calculated billings is the total of a period’s cloud subscriptions and support revenue and of the respective period’s change in the deferred cloud subscriptions and support revenue balance. In the fourth quarter 2014 Fieldglass contributed €19 million and Concur contributed €45 million to SAP’s Non-IFRS cloud subscriptions and support revenue at constant currencies. The contribution from Concur to non-IFRS deferred cloud subscriptions and support revenue at December 31^st, 2014 was €65 million at constant currencies and €71 million at actual currencies (IFRS: €62 million). At December 4th, 2014, the closing of Concur, the balance was €61 million at actual currencies (IFRS: € 42 million).

⁷ Cloud subscriptions and support backlog represents expected future cloud subscriptions and support revenue that is contracted but not yet invoiced and thus not recorded in deferred revenue.

⁸ Network spend volume is the total value of purchase orders transacted on the Ariba, Concur and Fieldglass Networks in the trailing 12 months.


*SAP Reports Fourth Quarter and Twelve Months 2014 Results*		Page 3

Fourth Quarter 2014 Regional Revenue

SAP had another solid performance in EMEA, despite the macroeconomic conditions weighing on the business in Russia and Ukraine. Non-IFRS software and software-related service revenue increased 5% (5% at constant currencies) with a strong software revenue performance in the UK. Non-IFRS cloud subscriptions and support revenue in EMEA grew 85% (75% at constant currencies).

In the Americas, non-IFRS software and software-related service revenue increased 14% (6% at constant currencies), driven by strong growth in the United States. In Latin America, SAP continued to face a difficult macroeconomic and political environment. Non-IFRS cloud subscriptions and support revenue in the Americas increased 63% (50% at constant currencies).

In APJ, the Company achieved exceptional revenue growth in cloud and an overall solid revenue performance. Non-IFRS software and software-related service revenue grew 6% (2% at constant currencies). India delivered strong double-digit software revenue growth. Non-IFRS cloud subscriptions and support revenue grew 98% (87% at constant currencies) in APJ.


*SAP Reports Fourth Quarter and Twelve Months 2014 Results*		Page 4

FINANCIAL RESULTS IN DETAIL

FINANCIAL HIGHLIGHTS – Fourth Quarter 2014


	Fourth Quarter 2014¹⁾
	IFRS			Non- IFRS²⁾
€ million, unless otherwise stated	Q4 2014	Q4 2013	% change	Q4 2014	Q4 2013	% change	% change const. curr.

Cloud subscriptions and support	349	208	68	360	210	72	59
Software	1,867	1,902	–2	1,867	1,903	–2	–5
Support	2,506	2,268	11	2,507	2,272	10	8
Software and support	4,373	4,170	5	4,374	4,175	5	2
Software and software-related service revenue	4,722	4,378	8	4,734	4,385	8	5
Total revenue	5,458	5,106	7	5,469	5,113	7	4
Total operating expenses	–3,704	–3,305	12	–3,342	–3,015	11	8
Operating profit	1,754	1,802	–3	2,127	2,098	1	–2
Operating margin (%)	32.1	35.3	–3.2pp	38.9	41.0	–2.1pp	–2.3pp
Profit after tax	1,304	1,319	–1	1,564	1,522	3
Basic earnings per share (€)	1.09	1.11	–1	1.31	1.28	3
Number of employees (FTE)	74,406	66,572	12	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 €349 million (2013: €208 million), an increase of 68%. Non-IFRS cloud subscriptions and support revenue was €360 million (2013: €210 million), an increase of 72% (59% at constant currencies). IFRS software and support revenue was €4.37 billion (2013: €4.17 billion), an increase of 5%. Non-IFRS software and support revenue was €4.37 billion (2013: €4.18 billion), an increase of 5% (2% at constant currencies). IFRS software and software-related service revenue was €4.72 billion (2013: €4.38 billion), an increase of 8%. Non-IFRS software and software-related service revenue was €4.73 billion (2013: €4.39 billion), an increase of 8% (5% at constant currencies). IFRS total revenue was €5.46 billion (2013: €5.11 billion), an increase of 7%. Non-IFRS total revenue was €5.47 billion (2013: €5.11 billion), an increase of 7% (4% at constant currencies).

IFRS operating profit was €1.75 billion (2013: €1.80 billion), a decrease of 3%. Non-IFRS operating profit was €2.13 billion (2013: €2.10 billion), an increase of 1% (a decrease of 2% at constant currencies). IFRS operating margin was 32.1% (2013: 35.3%), a decrease of 3.2 percentage points. Non-IFRS operating margin was 38.9% (2013: 41.0%), a decrease of 2.1 percentage points (2.3 percentage points at constant currencies).

IFRS profit after tax was €1.30 billion (2013: €1.32 billion), a decrease of 1%. Non-IFRS profit after tax was €1.56 billion (2013: €1.52 billion), an increase of 3%. IFRS basic earnings per share was €1.09 (2013: €1.11), a decrease of 1%. Non-IFRS basic earnings per share was €1.31 (2013: €1.28), an increase of 3%. The IFRS and non-IFRS effective tax rates in the fourth quarter of 2014 were 24.8% (2013: 25.7%) and 25.8% (2013: 26.6%), respectively.


*SAP Reports Fourth Quarter and Twelve Months 2014 Results*		Page 5

FINANCIAL HIGHLIGHTS – Full Year 2014


	Full Year 2014¹⁾
	IFRS			Non-IFRS²⁾

€ million, unless otherwise stated	FY 2014	FY 2013	% change	FY 2014	FY 2013	% change	% change const. curr.


Cloud subscriptions and support	1,087	696	56	1,101	757	45	45
Software	4,399	4,516	–3	4,399	4,518	–3	–3
Support	9,368	8,738	7	9,373	8,756	7	8
Software and support	13,767	13,254	4	13,773	13,275	4	5
Software and software-related service revenue	14,855	13,950	6	14,874	14,032	6	7
Total revenue	17,560	16,815	4	17,580	16,897	4	5
Total operating expenses	–13,229	–12,336	7	–11,942	–11,415	5	6
Operating profit	4,331	4,479	–3	5,638	5,482	3	3
Operating margin (%)	24.7	26.6	–2.0pp	32.1	32.4	–0.4pp	–0.7pp
Profit after tax	3,275	3,325	–1	4,178	3,998	4
Basic earnings per share (€)	2.74	2.79	–2	3.50	3.35	4
Number of employees (FTE)	74,406	66,572	12	N/A	N/A	N/A	N/A

1) All figures are unaudited.

IFRS cloud subscriptions and support revenue was €1.09 billion (2013: €696 million), an increase of 56%. Non-IFRS cloud subscriptions and support revenue was €1.10 billion (2013: €757 million), an increase of 45% (45% at constant currencies). IFRS software and support revenue was €13.77 billion (2013: €13.25 billion), an increase of 4%. Non-IFRS software and support revenue was €13.77 billion (2013: €13.28 billion), an increase of 4% (5% at constant currencies). IFRS software and software-related service revenue was €14.86 billion (2013: €13.95 billion), an increase of 6%. Non-IFRS software and software-related service revenue was €14.87 billion (2013: €14.03 billion), an increase of 6% (7% at constant currencies). IFRS total revenue was €17.56 billion (2013: €16.82 billion), an increase of 4%. Non-IFRS total revenue was €17.58 billion (2013: €16.90 billion), an increase of 4% (5% at constant currencies).

IFRS operating profit was €4.33 billion (2013: €4.48 billion), a decrease of 3%. Non-IFRS operating profit was €5.64 billion (2013: €5.48 billion), an increase of 3% (3% at constant currencies). IFRS operating margin was 24.7% (2013: 26.6%), a decrease of 2.0 percentage points. Non-IFRS operating margin was 32.1% (2013: 32.4%), a decrease of 0.4 (0.7 percentage points at constant currencies).

IFRS profit after tax was €3.28 billion (2013: €3.33 billion), a decrease of 1%. Non-IFRS profit after tax was €4.18 billion (2013: €4.00 billion), an increase of 4%. IFRS basic earnings per share was €2.74 (2013: €2.79), a decrease of 2%. Non-IFRS basic earnings per share was €3.50 (2013: €3.35), an increase of 4%. The IFRS and non-IFRS effective tax rates in 2014 were 24.8% (2013: 24.4%) and 26.2% (2013: 25.9%), respectively.

Cash Flow – Twelve Months 2014

Operating cash flow was €3.57 billion (2013: €3.83 billion), a decrease of 7% year-over-year. This was mainly due to payouts for litigation in the amount of €555 million. Free cash flow was €2.84 billion (2013: €3.27 billion), a decrease of 13% year-over-year. Free cash flow was 16% of total revenue (2013: 19%). At December 31, 2014, SAP had a total group liquidity of €3.42 billion (December 31, 2013: €2.84 billion), which includes cash and cash equivalents and short term investments. Net debt at December 31,


*SAP Reports Fourth Quarter and Twelve Months 2014 Results*		Page 6

2014 was -€7.67 billion compared to -€1.47 billion at December 31, 2013.

ONE Service and Impact on SAP’s Financial Reporting

As outlined above, SAP is implementing the ONE Service approach to provide holistic service offerings to its customers. This combination of services will be reflected in SAP’s financial reporting by combining the respective revenue in one revenue line item of the income statement. Therefore, SAP will amend the structure of its income statement, starting with the first quarter of 2015 by presenting one revenue line item called ‘Services’ which includes premium support services, professional services and other services. Revenue from Enterprise Support and other standardised support offerings will continue to be reported in the ‘Software support’ line. The formerly presented subtotal ‘Software and software-related services’ (SSRS) which still included premium support revenue is replaced by the subtotal ‘Cloud & software’ which excludes premium support services.

This income statement modification does neither change total revenue nor the reported cloud subscriptions & support revenue and software revenue. The outlook the Company provides below for 2015 and beyond is based on this modified income statement format. For more information refer to the Company’s webinar at www.sap.com/investor.

BUSINESS OUTLOOK 2015

The Company is providing the following 2015 outlook:

•

Based on the strong momentum in SAP’s cloud business the Company expects full year 2015 non-IFRS cloud subscriptions and support revenue to be in a range of €1.95 – €2.05 billion at constant currencies (2014: €1.10 billion). The upper end of this range represents a growth rate of 86% at constant currencies. Concur and Fieldglass are expected to contribute approximately 50 percentage points to this growth.

•

The Company expects full year 2015 non-IFRS cloud & software revenue to increase by 8% – 10% at constant currencies (2014: €14.33 billion).

•

The Company expects full-year 2015 non-IFRS operating profit to be in a range of €5.6 billion – €5.9 billion at constant currencies (2014: €5.64 billion).

This 2015 outlook replaces the previously communicated 2015 mid-term ambition.

While the Company’s full-year 2015 business outlook is at constant currencies, actual currency reported figures are expected to continue to be impacted by currency exchange rate fluctuations. If exchange rates remain at the December 2014 closing rates for the rest of the year, the Company expects non-IFRS cloud & software revenue growth rate to experience a currency benefit of approximately 2 percentage points and non-IFRS operating profit growth rate at actual currencies to experience a currency benefit of approximately 1 percentage points for the full year 2015.

MID-TERM OUTLOOK

SAP expects to grow its more predictable revenue business while steadily increasing operating profit.

Looking beyond 2015, SAP is updating its 2017 ambition. SAP continues to expect fast growth in its cloud business with non-IFRS cloud subscriptions and support revenue reaching a range of €3.5 – €3.6 billion in 2017. Non-IFRS total revenue is expected to reach €21 – €22 billion in 2017. The Company expects non-IFRS operating profit in a range of €6.3 – €7.0 billion in 2017.

The changes to the 2017 goals reflect the impact from the Concur acquisition and anticipated faster customer adoption of SAP’s private cloud offering. SAP also anticipates the fast-growing cloud business along with growth in support revenue will drive a higher share of more predictable revenue with the total of cloud subscriptions & support revenue and software support revenue reaching a range of 65% – 70% of total revenue in 2017.


*SAP Reports Fourth Quarter and Twelve Months 2014 Results*		Page 7

By 2017 SAP’s rapidly growing cloud subscriptions and support revenue is expected to be close to software license revenue and is expected to exceed software license revenue in 2018. At that time SAP expects to reach a scale in its cloud business that will clear the way for accelerated operating profit expansion.

SAP is also introducing high level 2020 ambitions with 2020 non-IFRS cloud subscriptions and support revenue expected to reach €7.5 – €8.0 billion. Total revenue is expected to be in a range of €26 – €28 billion and non-IFRS operating profit in a range of €8 – €9 billion. The share of more predictable revenue is expected to grow further with the total of cloud subscriptions & support revenue and software support revenue reaching a range of 70% – 75% of total revenue in 2020.


*SAP Reports Fourth Quarter and Twelve Months 2014 Results*		Page 8

Additional Information

2014 revenue and profit figures include the full revenue and profit from hybris and the revenue and profit from Concur and Fieldglass since their acquisition dates of December 4 and May 2, respectively. The comparative numbers for 2013 do not include Concur or Fieldglass and hybris was included from 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.

# #

2014 Integrated Report and Annual Report

SAP’s 2014 Integrated Report and Annual Report to Shareholders and 2014 Annual Report on Form 20-F are scheduled to be published on March 20, 2015, and will be available for download at www.sap.com/investor.

Webcast

SAP senior management will host a press conference in Walldorf today at 10:00 AM (CET) /

9:00 AM (GMT) / 4:00 AM (Eastern) / 1:00 AM (Pacific), followed by an investor conference at 2:00 PM (CET) / 1:00 PM (GMT) / 8:00 AM (Eastern) / 5:00 AM (Pacific). Both conferences will be web cast live on the Company’s website at www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the full-year and quarterly results can be found at www.sap.com/investor.

SAP will also be hosting a Capital Markets Day and live webcast in New York on Tuesday, February 3, 2015.

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 282,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

# # #

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

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE. The information contained herein may be changed without prior notice.

Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary.

These materials are provided by SAP SE 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.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.


*SAP Reports Fourth Quarter and Twelve Months 2014 Results*		Page 9

Note to editors:

To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels. To view video stories on diverse topics, visit www.sap-tv.com. From this site, you can embed videos into your own Web pages, share video via e-mail links and subscribe to RSS feeds from SAP TV.

For customers interested in learning more about SAP products:


Global Customer Center:		+49 180 534-34-24
United States Only:		1 (800) 872-1SAP (1-800-872-1727)

For more information, financial community only:


Stefan Gruber		+49 (6227) 7-44872		investor@sap.com, CET

For more information, press only:


Nicola Leske	+49 (6227) 7-50852	nicola.leske@sap.com, CET
Daniel Reinhardt	+49 (6227) 7-40201	daniel.reinhardt@sap.com, CET
Andy Kendzie	+1 (202) 312-3919	andy.kendzie@sap.com, ET

Follow SAP Investor Relations on Twitter at @sapinvestor.

Appendix – Financial Information

LOGO

FINANCIAL INFORMATION

FOR THE FOURTH 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
Multi-Quarter Summary		F12-F13

Financial Statements (IFRS, Unaudited)

CONSOLIDATED INCOME STATEMENTS OF SAP GROUP – QUARTER

For the three months ended December 31

€ millions, unless otherwise stated

2014

2013

Change

in %

Cloud subscriptions and support

349

208

Software

1,867

1,902

–2

Support

2,506

2,268

Software and support

4,373

4,170

Software and software-related service revenue

4,722

4,378

Professional services and other service revenue

735

728

Total revenue

5,458

5,106

Cost of software and software-related services

–852

–759

Cost of professional services and other services

–611

–582

Total cost of revenue

–1,463

–1,341

Gross profit

3,995

3,765

Research and development

–670

–606

Sales and marketing

–1,269

–1,111

General and administration

–279

–230

Restructuring

–29

–23

TomorrowNow and Versata litigation

–2

–1

>100

Other operating income/expense, net

Total operating expenses

–3,704

–3,305

Operating profit

1,754

1,802

–3

Other non-operating income/expense, net

–3

<-100

Finance income

Finance costs

–52

–43

Financial income, net

–24

–22

Profit before tax

1,734

1,776

–2

Income tax TomorrowNow and Versata litigation

>100

Other income tax expense

–431

–458

–6

Income tax expense

–430

–457

–6

Profit after tax

1,304

1,319

–1

attributable to owners of parent

1,304

1,319

–1

attributable to non-controlling interests

–1

<-100

Earnings per share, basic (in €)*

1.09

1.11

–1

Earnings per share, diluted (in €)*

1.09

1.10

–1

* For the three months ended December 31, 2014 and 2013, the weighted average number of shares was 1,195 million (diluted 1,198 million) and 1,194 million (diluted: 1,196 million), respectively (treasury stock excluded).

Due to rounding, numbers may not add up precisely.

CONSOLIDATED INCOME STATEMENTS OF SAP GROUP – TWELVE MONTHS

For the twelve months ended December 31

€ millions, unless otherwise stated

2014

2013

Change

in %

Cloud subscriptions and support

1,087

696

Software

4,399

4,516

–3

Support

9,368

8,738

Software and support

13,767

13,254

Software and software-related service revenue

14,855

13,950

Professional services and other service revenue

2,706

2,865

–6

Total revenue

17,560

16,815

Cost of software and software-related services

–2,894

–2,629

Cost of professional services and other services

–2,379

–2,402

–1

Total cost of revenue

–5,272

–5,031

Gross profit

12,288

11,784

Research and development

–2,331

–2,282

Sales and marketing

–4,304

–4,131

General and administration

–891

–866

Restructuring

–126

–70

TomorrowNow and Versata litigation

–309

<-100

Other operating income/expense, net

–64

Total operating expenses

–13,229

–12,336

Operating profit

4,331

4,479

–3

Other non-operating income/expense, net

–17

<-100

Finance income

127

115

Finance costs

–152

–181

–16

Financial income, net

–25

–66

–63

Profit before tax

4,356

4,396

–1

Income tax TomorrowNow and Versata litigation

–8

<-100

Other income tax expense

–1,166

–1,063

Income tax expense

–1,080

–1,071

Profit after tax

3,275

3,325

–1

attributable to owners of parent

3,275

3,326

–2

attributable to non-controlling interests

–1

<-100

Earnings per share, basic (in €)*

2.74

2.79

–2

Earnings per share, diluted (in €)*

2.74

2.78

–2

* For the twelve months ended December 31, 2014 and 2013, the weighted average number of shares was 1,195 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.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION OF SAP GROUP

as at December 31, 2014 and December 31, 2013


€ millions	2014		2013
Cash and cash equivalents		3,348		2,748
Other financial assets		658		251
Trade and other receivables		4,330		3,864
Other non-financial assets		433		346
Tax assets		173		142
Total current assets		8,942		7,351
Goodwill		20,831		13,690
Intangible assets		4,608		2,954
Property, plant, and equipment		2,102		1,820
Other financial assets		1,020		607
Trade and other receivables		100		98
Other non-financial assets		164		107
Tax assets		229		172
Deferred tax assets		378		292
Total non-current assets		29,432		19,739
Total assets		38,374		27,091


as at December 31, 2014 and December 31, 2013
€ millions	2014		2013
Trade and other payables		1,006		850
Tax liabilities		333		433
Financial liabilities		3,801		748
Other non-financial liabilities		2,797		2,562
Provision TomorrowNow and Versata litigation		1		223
Other provisions		149		123
Provisions		150		346
Deferred income		1,681		1,408
Total current liabilities		9,767		6,347
Trade and other payables		55		45
Tax liabilities		373		319
Financial liabilities		7,741		3,758
Other non-financial liabilities		231		257
Provisions		149		132
Deferred tax liabilities		386		110
Deferred income		78		74
Total non-current liabilities		9,013		4,695
Total liabilities		18,780		11,043
Issued capital		1,229		1,229
Share premium		614		551
Retained earnings		18,311		16,258
Other components of equity		570		–718
Treasury shares		–1,224		–1,280
Equity attributable to owners of parent		19,500		16,040
Non-controlling interests		94		8
Total equity		19,594		16,048
Total equity and liabilities		38,374		27,091

Due to rounding, numbers may not add up precisely.

CONSOLIDATED STATEMENTS OF CASH FLOWS OF SAP GROUP

For the twelve months ended December 31


€ millions	2014		2013
Profit after tax		3,275		3,325
Adjustments to reconcile profit after taxes to net cash provided by operating activities:
Depreciation and amortization		1,010		951
Income tax expense		1,080		1,071
Financial income, net		25		66
Decrease/increase in sales and bad debt allowances on trade receivables		47		42
Other adjustments for non-cash items		85		57
Decrease/increase in trade and other receivables		–286		–110
Decrease/increase in other assets		–344		–131
Decrease/increase in trade payables, provisions, and other liabilities		648		–176
Decrease/increase in deferred income		16		125
Cash outflows due to TomorrowNow and Versata litigation		–555		–1
Interest paid		–130		–159
Interest received		59		67
Income taxes paid, net of refunds		–1,356		–1,295
Net cash flows from operating activities		3,574		3,832

Business combinations, net of cash and cash equivalents acquired		–6,354		–1,160
Cash payments for derivative financial instruments related to business combinations		–111		0
Total cash outflows for business combinations, net of cash and cash equivalents aquired		–6,465		–1,160
Purchase of intangible assets and property, plant, and equipment		–737		–566
Proceeds from sales of intangible assets or property, plant, and equipment		46		55
Purchase of equity or debt instruments of other entities		–891		–1,531
Proceeds from sales of equity or debt instruments of other entities		833		1,421
Net cash flows from investing activities		–7,214		–1,781
Dividends paid		–1,194		–1,013
Proceeds from reissuance of treasury shares		51		49
Proceeds from borrowings		7,581		1,000
Repayments of borrowings		–2,219		–1,625
Net cash flows from financing activities		4,219		–1,589

Effect of foreign currency rates on cash and cash equivalents		21		–191
Net decrease/increase in cash and cash equivalents		600		271
Cash and cash equivalents at the beginning of the period		2,748		2,477
Cash and cash equivalents at the end of the period		3,348		2,748

Due to rounding, numbers may not add up precisely.

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 December 31
€ 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		349		10		360		–26		334		208		1		210		68		72		59
Software		1,867		0		1,867		–59		1,808		1,902		0		1,903		–2		–2		–5
Support		2,506		1		2,507		–64		2,444		2,268		5		2,272		11		10		8
Software and support		4,373		1		4,374		–123		4,251		4,170		5		4,175		5		5		2
Software and software-related service revenue		4,722		12		4,734		–149		4,586		4,378		6		4,385		8		8		5
Professional services and other service revenue		735		0		735		–24		712		728		0		728		1		1		–2
thereof cloud-related		69		0		69		–3		66		45		0		45		54		54		47
Total revenue		5,458		12		5,469		–172		5,297		5,106		6		5,113		7		7		4

Cloud subscriptions and support		349		10		360		–26		334		208		1		210		68		72		59
Cloud-related professional services revenue		69		0		69		–3		66		45		0		45		54		54		47
Cloud revenue		418		10		429		–29		400		253		1		254		65		69		57

*Operating Expense Numbers*
Cost of software and software-related services		–852		105		–747						–759		98		–661		12		13
thereof cloud		–161		30		–131						–83		18		–66		93		99
Cost of professional services and other services		–611		47		–564						–582		38		–543		5		4
Total cost of revenue		–1,463		152		–1,311						–1,341		137		–1,204		9		9
Gross profit		3,995		164		4,158						3,765		143		3,909		6		6
Research and development		–670		55		–615						–606		51		–555		11		11
Sales and marketing		–1,269		69		–1,201						–1,111		63		–1,047		14		15
General and administration		–279		55		–224						–230		15		–215		21		4
Restructuring		–29		29		0						–23		23		0		27		0
TomorrowNow and Versata litigation		–2		2		0						–1		1		0		>100		0
Other operating income/expense, net		8		0		8						7		0		7		21		21
Total operating expenses		–3,704		362		–3,342		98		–3,244		–3,305		290		–3,015		12		11		8

For the three months ended December 31

€ 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

1,754

374

2,127

–74

2,053

1,802

296

2,098

–3

–2

Other non-operating income/expense, net

–3

<-100

Finance income

Finance costs

–52

–43

Financial income, net

–24

–22

Profit before tax

1,734

374

2,108

1,776

296

2,072

–2

Income tax TomorrowNow and Versata litigation

–1

>100

Other income tax expense

–431

–113

–544

–458

–93

–550

–6

–1

Income tax expense

–430

–114

–544

–457

–93

–550

–6

–1

Profit after tax

1,304

260

1,564

1,319

203

1,522

–1

attributable to owners of parent

1,304

260

1,564

1,319

203

1,523

–1

attributable to non-controlling interests

–1

<-100

Key Ratios

Operating margin (in %)

32.1

38.9

38.8

35.3

41.0

–3.2pp

–2.1pp

–2.3pp

Effective tax rate (in %)

24.8

25.8

25.7

26.6

–1.0pp

–0.8pp

Earnings per share, basic (in €)

1.09

1.31

1.11

1.28

–1


	For the twelve months ended December 31
€ 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		1,087		14		1,101		–3		1,098		696		61		757		56		45		45
Software		4,399		0		4,399		0		4,399		4,516		2		4,518		–3		–3		–3
Support		9,368		5		9,373		114		9,487		8,738		19		8,756		7		7		8
Software and support		13,767		5		13,773		113		13,886		13,254		21		13,275		4		4		5
Software and software-related service revenue		14,855		19		14,874		110		14,984		13,950		82		14,032		6		6		7
Professional services and other service revenue		2,706		0		2,706		32		2,738		2,865		0		2,865		–6		–6		–4
thereof cloud-related		222		0		222		1		222		170		0		170		30		30		31
Total revenue		17,560		19		17,580		142		17,722		16,815		82		16,897		4		4		5

Cloud subscriptions and support		1,087		14		1,101		–3		1,098		696		61		757		56		45		45
Cloud-related professional services revenue		222		0		222		1		222		170		0		170		30		30		31
Cloud revenue		1,309		14		1,323		–3		1,320		866		61		927		51		43		42

*Operating Expense Numbers*
Cost of software and software-related services		–2,894		350		–2,543						–2,629		364		–2,265		10		12
thereof cloud		–481		88		–393						–314		97		–218		53		80
Cost of professional services and other services		–2,379		121		–2,258						–2,402		123		–2,278		–1		–1
Total cost of revenue		–5,272		471		–4,801						–5,031		487		–4,543		5		6
Gross profit		12,288		490		12,778						11,784		570		12,354		4		3
Research and development		–2,331		127		–2,204						–2,282		120		–2,162		2		2
Sales and marketing		–4,304		169		–4,134						–4,131		205		–3,926		4		5
General and administration		–891		85		–806						–866		70		–796		3		1
Restructuring		–126		126		0						–70		70		0		80		0
TomorrowNow and Versata litigation		–309		309		0						31		–31		0		<-100		0
Other operating income/expense, net		4		0		4						12		0		12		–64		–64
Total operating expenses		–13,229		1,288		–11,942		–152		–12,093		–12,336		921		–11,415		7		5		6

For the twelve months ended December 31

€ 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

4,331

1,307

5,638

–9

5,629

4,479

1,003

5,482

–3

Other non-operating income/expense, net

–17

<-100

Finance income

127

115

Finance costs

–152

–181

–16

Financial income, net

–25

–66

–63

Profit before tax

4,356

1,307

5,662

4,396

1,003

5,399

–1

Income tax TomorrowNow and Versata litigation

–86

–8

<-100

Other income tax expense

–1,166

–318

–1,485

–1,063

–338

–1,401

Income tax expense

–1,080

–405

–1,485

–1,071

–330

–1,401

Profit after tax

3,275

902

4,178

3,325

674

3,998

–1

attributable to owners of parent

3,275

902

4,177

3,326

674

3,999

–2

attributable to non-controlling interests

–1

<-100

Key Ratios

Operating margin (in %)

24.7

32.1

31.8

26.6

32.4

–2.0pp

–0.4pp

–0.7pp

Effective tax rate (in %)

24.8

26.2

24.4

25.9

0.4pp

0.3pp

Earnings per share, basic (in €)

2.74

3.50

2.79

3.35

–2

* 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	Q4 2014	1/1– 12/31/2014	Q4 2013	1/1– 12/31/2013
Operating profit (IFRS)	1,754	4,331	1,802	4,479
Revenue adjustments	12	19	6	82
Adjustment for acquisition-related charges	160	562	130	555
Adjustment for share-based payment expenses	171	290	135	327
Adjustment for restructuring	29	126	23	70
Adjustment for TomorrowNow and Versata litigation	2	309	1	–31
Operating expense adjustments	362	1,288	290	921
Operating profit adjustments	374	1,307	296	1,003
Operating profit (Non-IFRS)	2,127	5,638	2,098	5,482

Due to rounding, numbers may not add up precisely.

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 December 31
€ 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		349			10		360			–26		334			208		1		210		0		210
Closing balance deferred cloud subscriptions and support		690			10		699			–62		637			443		4		447		9		457
Opening balance deferred cloud subscriptions and support		498			0		498			–32		466			376		6		382		0		382
Change in deferred cloud subscriptions and support		192			10		202			–31		171			68		–2		66		9		75
Calculated cloud billings		542			20		562			–56		505			276		0		276		9		285

Year-over-year changes (2014 vs. 2013, in %)		96	%				104	%				78	%

* 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.

Due to rounding, numbers may not add up precisely.

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 December 31
€ 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		92		1		93		–5		88		50		0		50		84		85		75
Americas		222		9		231		–19		212		140		1		141		58		63		50
APJ		36		0		36		–2		34		18		0		18		97		98		87
Cloud subscriptions and support revenue		349		10		360		–26		334		208		1		210		68		72		59

*Software and software-related service revenue by region*
EMEA		2,290		2		2,292		4		2,296		2,189		3		2,193		5		5		5
Americas		1,682		9		1,691		–126		1,565		1,478		3		1,481		14		14		6
APJ		751		0		751		–27		724		711		0		711		6		6		2
Software and software-related service revenue		4,722		12		4,734		–149		4,586		4,378		6		4,385		8		8		5

*Total revenue by region*
Germany		799		0		799		–1		799		793		1		794		1		1		1
Rest of EMEA		1,869		2		1,871		3		1,874		1,758		3		1,761		6		6		6
Total EMEA		2,668		2		2,671		2		2,672		2,551		3		2,555		5		5		5
United States		1,479		9		1,488		–127		1,361		1,264		2		1,266		17		18		7
Rest of Americas		460		0		460		–16		444		490		1		491		–6		–6		–10
Total Americas		1,939		9		1,948		–144		1,805		1,754		3		1,757		11		11		3
Japan		164		0		164		7		171		173		0		173		–5		–5		–1
Rest of APJ		687		0		687		–37		650		628		0		628		9		9		3
Total APJ		850		0		851		–30		820		801		0		801		6		6		2
Total revenue		5,458		12		5,469		–172		5,297		5,106		6		5,113		7		7		4

F10


	For the twelve months ended December 31
€ 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		277		1		278		–1		277		176		0		176		58		58		57
Americas		709		12		721		–3		719		457		61		517		55		39		39
APJ		101		0		101		1		102		64		0		64		59		59		60
Cloud subscriptions and support revenue		1,087		14		1,101		–3		1,098		696		61		757		56		45		45

*Software and software-related se*rvice revenue by region
EMEA		7,028		5		7,034		45		7,079		6,616		6		6,622		6		6		7
Americas		5,489		14		5,503		12		5,515		5,097		76		5,173		8		6		7
APJ		2,337		0		2,337		53		2,390		2,237		0		2,237		4		4		7
Software and software-related service revenue		14,855		19		14,874		110		14,984		13,950		82		14,032		6		6		7

*Total revenue by region*
Germany		2,570		1		2,571		–1		2,571		2,513		2		2,514		2		2		2
Rest of EMEA		5,813		4		5,817		53		5,870		5,462		5		5,467		6		6		7
Total EMEA		8,383		5		8,389		52		8,441		7,975		6		7,981		5		5		6
United States		4,898		13		4,911		–35		4,875		4,487		73		4,561		9		8		7
Rest of Americas		1,591		0		1,592		61		1,653		1,746		2		1,748		–9		–9		–5
Total Americas		6,489		14		6,503		26		6,528		6,233		76		6,309		4		3		3
Japan		600		0		600		46		646		631		0		631		–5		–5		2
Rest of APJ		2,088		0		2,088		18		2,106		1,975		0		1,976		6		6		7
Total APJ		2,688		0		2,688		64		2,753		2,606		0		2,607		3		3		6
Total revenue		17,560		19		17,580		142		17,722		16,815		82		16,897		4		4		5

** 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.

Due to rounding, numbers may not add up precisely.

F11

MULTI-QUARTER SUMMARY (IFRS AND NON-IFRS)

€ millions, unless otherwise stated

2013

2014

Cloud subscriptions and support (IFRS)

137

159

191

208

696

219

241

277

349

1,087

Revenue adjustment*

Cloud subscriptions and support (non-IFRS)

167

183

197

210

757

221

242

278

360

1,101

Software (IFRS)

657

982

975

1,902

4,516

623

957

951

1,867

4,399

Revenue adjustment*

Software (non-IFRS)

657

982

977

1,903

4,518

623

957

952

1,867

4,399

Support (IFRS)

2,109

2,177

2,184

2,268

8,738

2,213

2,279

2,370

2,506

9,368

Revenue adjustment*

Support (non-IFRS)

2,113

2,182

2,189

2,272

8,756

2,214

2,280

2,371

2,507

9,373

Software and support (IFRS)

2,765

3,159

4,170

13,254

2,836

3,237

3,322

4,373

13,767

Revenue adjustment*

Software and support (non-IFRS)

2,770

3,164

3,166

4,175

13,275

2,838

3,238

3,323

4,374

13,773

Software and software-related service revenue (IFRS)

2,903

3,318

3,351

4,378

13,950

3,055

3,478

3,599

4,722

14,855

Revenue adjustment*

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

2,937

3,347

3,363

4,385

14,032

3,058

3,480

3,601

4,734

14,874

Consulting

557

580

553

2,242

508

520

512

555

2,095

Other services

142

165

142

175

623

134

153

143

180

611

Professional services and other service revenue

(IFRS = non-IFRS)

698

744

695

728

2,865

643

673

655

735

2,706

Total revenue (IFRS)

3,601

4,062

4,045

5,106

16,815

3,698

4,151

4,254

5,458

17,560

Revenue adjustment*

Total revenue (non-IFRS)

3,636

4,091

4,057

5,113

16,897

3,701

4,153

4,256

5,469

17,580

Operating profit (IFRS)

646

988

1,043

1,802

4,479

723

698

1,157

1,754

4,331

Revenue adjustment*

Expense adjustment*

222

168

242

290

921

193

536

196

362

1,288

Operating profit (non-IFRS)

902

1,186

1,296

2,098

5,482

919

1,236

1,355

2,127

5,638

Operating margin (IFRS, in %)

17.9

24.3

25.8

35.3

26.6

19.5

16.8

27.2

32.1

24.7

Operating margin (non-IFRS, in %)

24.8

29.0

32.0

41.0

32.4

24.8

29.8

31.8

38.9

32.1

Effective tax rate (IFRS, in %)

16.3

24.8

26.4

25.7

24.4

24.1

22.6

26.5

24.8

Effective tax rate (non-IFRS, in %)

21.4

26.8

27.6

26.6

25.9

25.4

27.7

25.8

26.2

Earnings per share, basic (IFRS, in €)

0.44

0.61

0.64

1.11

2.79

0.45

0.47

0.74

1.09

2.74

Earnings per share, basic (non-IFRS, in €)

0.58

0.71

0.78

1.28

3.35

0.56

0.79

0.84

1.31

3.50

F12

€ millions, unless otherwise stated

2013

2014

Net cash flows from operating activities

2,162

320

558

792

3,832

2,352

223

507

491

3,574

Purchases of intangible assets, and property, plant, and equipment

–113

–152

–136

–165

–566

–130

–174

–168

–265

–737

Free cash flow

2,049

168

422

627

3,266

2,222

339

226

2,837

Deferred cloud subscriptions and support revenue (IFRS, quarter

end)

344

354

376

443

451

445

498

690

Revenue adjustment*

Deferred cloud subscriptions and support revenue (non-IFRS,

quarter end)

377

361

382

447

454

448

498

699

Days’ sales outstanding (DSO, in days)**

Headcount (quarter end)***

64,598

64,937

66,061

66,572

66,750

67,651

68,835

74,406

Employee retention (in %, rolling 12 months)

93.9

93.6

93.5

93.4

93.5

93.3

93.5

Women in management (in %, quarter end)

21.4

21.0

21.2

20.9

21.1

21.3

Greenhouse gas emissions (in kilotons)

145

135

120

545

120

140

125

115

500

** Days’ Sales Outstanding measures the length of time it takes to collect receivables. SAP calculates DSO by dividing the average invoiced accounts receivables balance of the last 12 months by the average monthly sales of the last 12 months.

*** In full-time equivalents

Due to rounding, numbers may not add up precisely.

F13

GRAPHIC 3 g8546631.jpg GRAPHIC begin 644 g8546631.jpg M_]C_X``02D9)1@`!`@``9`!D``#_[``11'5C:WD``0`$````9```_^X`#D%D M;V)E`&3``````?_;`(0``0$!`0$!`0$!`0$!`0$!`0$!`0$!`0$!`0$!`0$! M`0$!`0$!`0$!`0$!`0("`@("`@("`@("`P,#`P,#`P,#`P$!`0$!`0$"`0$" M`@(!`@(#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,# M`P,#`P,#`P,#_\``$0@`1P".`P$1``(1`0,1`?_$`,<```("`04!`0`````` M```````*"`D'`P0%!@L!`@$``@("`P$!``````````````@'"04&`@,$`0H0 M```&`0($`P4$!P4(`P````$"`P0%!@<`$2$2"`DQ$Q1!49'1%2(R(V-A<8%3 ME=460M,E-0JA\3,D5$47&6>76!$``0($!`('`@D(!@H#`````0(#`!$$!2$2 M!@'W;[8/6_FI?$/EH\P.J M#W;^M!ZW\U+XA\M'F!U0>[?UH/6_FI?$/EH\P.J#W;^M!ZT?WJ7Q#Y:/,#J@ M]W.V#UOYJ7Q#Y:/,#J@]V_K0>M_-2^(?+1Y@=4'NW]:#U@_O4OB'RT>8'5![ MN=L'K?S4OB'RT>8'5![M]L'K!_>)?$/EH\PGJCY[N=L'K?S4OB'RT>8'5'WW M;^M!ZW\U+XA\M'F!U0>[?UH/6_FI?$/EH\P.J#W;^M!ZW\U+XA\M'F!U0>[? MUH/6C^]2^(?+1Y@=4'NYVQRT(SE[)+1=>K\>\G+!-/VD7"Q,4@H\D9&0=J@D MV9LFJ)3'7774-P`/#QX!N.O%Y$)H6$E1)X2`YF,M9]&7"_72EL M%G;4[5U#B4&G^54*)D%I'T00/@,7Z5?M635>Z0LF(.DX6:ZG[]7H):+:O'9` MB*:VA;97+8ZI4*^!04!G9MI"F:N7Q@\L7"A4BB5`ICG32X>I-RX[E4%S6XL: M$M[SB4H$ID.L.,%2NH+<)"9\,?:PBTNQ>A+\&V&OEJ6!4[LW=FG4ET\*1#%4 MQ4FE3C[3K#):*CS7+A"WE@F2?U#.E!03",Y*D*4@&.39%2M*/VZA0.FY95])I(6-5LH0P"50[5(I@'D3>/7M`+C3VZDH:-X@.P MB780#?PU-MKN=#=Z,5UKKFZUDB:4HD<",!ASE"RWS35ZT[5JMNJ*!ZW77,0, MX*9$&6*>`D>(&$9+P+AW)'4IDB*Q5BA@PE+;+1\M*I$DI$D5%,XZ$:^J?O9* M1.FL1D@4O*0@B4>=50A0#0IM69"@?FJ`$Q/#@.P1TO$E(M6;,CT[%%$)&K7"[28P\$G)O@CF" MKTS1R]`KQ^9-8C5/R&I]C&W'64U3?[3I>R/ZCN95Y!H%0`$R4CA(/#)!>/ZA-"%#C^O7>/4UM0!(N7.?\`XP_YL7_+,UKS#KA_[M'A-@GE.9E^6-3U+Z0-ZM-4S ME766H5:&Q,JI%BI<,L1Q$I'N%&K^,DF;B/?L M7*0@51L[8NDTG+1K[!].3\Y(-8J&B8ILN] MD).3>JE0:,&;1`AE5W#E8X`4H!P\1X`.L7=*ZCM%"]=KD0FB825$\!("9!$03`QE*\MY=YJW<*N-KM M:E(TRPJ38&!UY4MS4ZH`IIDGV6 MDSG)63*%$2QG+IBVCE3\O?R@VY]]N4N^_F!]K;P]F^H$[G"?(M6/,42I+`JH'VP*)71]2FYEPMS--H.R*<1YFG;-:4DA M24%."01[(($U$=G3%:OH[V/LEUK*[=34],'6$U3B*)#@"FUJ"E9E%*IA4C@` M1QAE"9FH>NQ3Z9G)"/AX6(:+/Y*6DW3=A&QS!HD9=R]?/G1TVS1JV2((G.8P M`4`\=)8S2NU"T4:&U5-P."4IF5'&21TDG\\615-0Q1TSM36N(IK=3(S*4N0" M4@3/'``#XHA0IW-N@Q.5/#FZG,=>H34,DHX(M+'B2*`?RQ*$T2*-$J%`P?>* ML)`#COMJ1VMG=V%LYQ9KAB!+[))P/#'-RZ\8BE?J#V3:=\!6I+5GY_;?ZL(D M_3LR8KR+67=PH61*5<:JP;+O)"P5FQQ4O&Q;9L@=TX<2CADZ6)&@BU3%0WG\ M@@4-Q#AK3JRS7FT5*:"Z4CK=U4YX>122"3.71B>$\L\<(D*V:ET_>J)RYVFM MH:JTM-^(I33H,DRS344G##'&$D>X7U9GZL.I*VWJ*5$E"K1C4K&2`I`F9:IQ M+I?FG')N4%5'5FD3*O1YA$4T5$T^')MJRO9K0B]O=%M4U3_\G6*2XOI2I21W M1/$9>!ZXI1]2FY!W6W(?NS#:46BFSTS4I24EM:DYR1Q*N,XN6["F"O3T[*_4 MA,L/^9LSTF,:2JHF!=X:%.G*W!\W,_2[>K'5(J;S1Z M)H59J6G`==Y@+4,9]G>/PB'*]!^W+ELT]'[-*,I#6`BP1M3BD!3F#A`GV\XH>[[ M6"1M>"Z9GF(94H.U!]HZ9O MTM:L7:]55&E7"!37A.5(X95-&9('2I,YD8X"$9]<^W)U'H:DUU1(*KE9GO#> M($SY-_VU'ZC@2!T!2I11)VSGIU>O'IB)O]Z_J_PU M;9WXID6PRSEZAAPZ)]4(UZ8*'PM_=.!7LIJS*?+_``;YPZ,<>V1XP]Z4``H! ML'A^C56V1')*9=@B\]1,XCA?^K7IIQ7;G=#R/G#&E'N;,K)9U7+1:8^(E&K: M31*YCG"[=R]4JJZQ6Q^JHQBM;:"H`\^'"-)O M6X>A=-W1-BO]YHZ6ZN(SI:6M*5A/P_KXQF6J6^K7B'8V.FV""M=>D@,HPGJ[ M)LI>(=IE$2F.VD(]=PU<"4X"4>4P[#XZP-7355"YY:I;+:DF12H8I(Y&?"-B MM=XH+U2(K+0\FHI%IGXB3-*@>8(Y&*LNZGT-5+J!PU</'@&^O#<+G16>A=NES4$43"25$X8#G.,O9].UU[ MKF;5:VUO5#ZTI\%.*W%$R"D<\HPX=!AP#MF]M5ATP0<=F#,+!A-=0$W&@+=C MLD]CL3Q;U(`6A8E3[2#JU."*;2#\H[I[F;H#Y8'.I7?O3O/6;@W%5KM"U-Z: M940@":2Z/G+EQ`,\H,^1..`MY]-'IHM^U5"C4NJ`AW7=0V#G4`I-*"<&TS&" M\LLQ$C,D"+D$RDY-@(``(FW#E`/[0[\./B(;Z@"83@@]WJAO4!*T8ID"3,'G MCQ^'B.J-7;7&.R*>>RQ<(&P]'LE"1RK;ZQ2,TY7B;$U2.!ETG,O9!L4:[7(/ MVBE?1DDF)#?=-R#MQ`=3QZAJ>K8W+765@*6ZNE9R]'W83^E./;"Q^DZNHZG: MPT%.L%A(HGZAD_:IJE(H4R:@%$AP$IA`8@L%^K-+WNDU-0)'XA3.A201,$ MI.$QV?DB=-6ZM.&L%>TF@&'RR/ZC+KHI/'1"?>%BZ<`81X$+N!=/3HWU*:'O`%+ M?:==#4+]I2IE.8^T098`GA,"*S]<^CS<'31-QT\MNZ4K?LNIP>0D>R`S\LI3 MA,`SBJR17RMA"?G:Q*)9!Q+97T:^@['7G1;!2Y22B'R!FKZ+DV)P8#)1CU`X MIF(H51$Y1X;[!J;*5S2FJFD5[+M%<$M&;92AM2D2,QE,B0H88@C$0N-9;=8: M*<ST22+N(G7#F'3KT]8CPZQ(0%:53(MA-+ ME`I1>V9\7ZI:7IN7[XO)]TX,`B(B)1`/9JJ36>HG]4ZPN%W7/P7WG%I),R$J M4<@GU)EARB\?;C2#6B-`6K25.D`TM,V',)264A3O[2YD])Q.,;=YU&4Z/ZHX M+I;77`+I/X?G,N-3`X`0(UBK&S@TXHR/CZATV,Y=%_*;B.VVO'1:;N#NC5:O M2@FA;K/+SZ52)[.``/68]%7K*VT^ND:%2K_'NVQRI`Z@Y+]$Y1WK..,(7-N' MLC8EGBD-&9$ILU5E5%"\_IG$FP63CWY?$?.CI`J2Z8^PZ8#KIL5Y>TWJ2AOK M)*76'PH2,C@05"8X9A,'IYQD=7V!K5.F[IIMY*5)JJ1;9!`([R3*8.$@9'&$ MG.WI!3%([DV!J'96RC&QT_,\U5)QFH7D.WEX..LD:]2$.`@7U#4PAN'$!`=6 M+[I7-%ZV?NMW9$F:J@I70.0#@2H?IBI39+3CNFO41:K0]]]270LD\YMM52#^ M64NS"'P"_=+^H-5H&+CDF8G"1O>N=$1[A>3TQV`#4C$YA`0#E,(TQD.XA[1_ M7JQ_TXK4WMA1E!*2I55.6$Y5,A/IPPQY814/ZNJ9+F^=8Y(3%/22ZITTS(\I MG$])QB>/^GKG[^ZENHF#3<23K%4?&4QZFU5%3Z)&7YV]DR&",`PB@E(/J^D) MG14P+N5-(3\0`1B;U6T=AIVK15TJ&V]0+J'4+2E*4E;0([ZI2F0>!,^)B=_1 M'4:D\&\T-0IUS2K=,TXRI1)2FH5/.T@DD``"92,!T8PS%.H-7$#,H/DTC,UX MF22>$5$`2,V58N".2J&'@"9DC&`V_LWTG=*?">IQ3**DBH$C.<\9_#C\4/Q4 MA*J9>8#%I0.'++P[.J/-K;LW\Y9B5RNQCN:F)>PJ0T##1315_(RC]W)*-8Z/ MCFC4$'D3R$6A^G7TZT.VM*C4NHT(K\\-B`E:#F3@3B#S/2?U=4HU=? M([(-$$>?OT;=?&2.AC.=PM%<;_U?1+7./(_(V.73PS-A9F#.7=BTE(IX!3DB M+7#$54](Y,0Y#%.9)4IB#N%EFY.V%NW-TZPIU:6;HTT,CA]H$I&!/'*9O\`L_J1ZMHDE[2=15*\W3$S4D9B"M`/LJESEC*1APSI@[D/2-U6 M1[!#'V3XJ#NJJ"8O,9WYTVJEY8NC;$,U;1\@X!K8.1<>4JL>NZ(<./#P!$=7 M;7ZRT$KP;M1O)H>*7D9GDJ!X$*[TLPQ"3)6/"+,=$;N[=[AM!5DN#2JD?U+A M\%0P!EE,IRX$B<3T3!,Y/NAL8!_L@&X#MOP$/:.M$4B?>>X"6)X_#T&)40X% M_:MXRZ.'P'F.@Q@;J`Z9<)=3M+=4C,]`@[A%+HJ)M'[IHFWLD"MRG!%_6[&W M(65A'SL M&--UCH'26N;:NV:KHVJEI8^\R)+J`?F.2*DD=1A;SIK[65@POW5:[1YU1>VX MH6K6UZV2)]>AVLD>'H\+,I@`-BV*(NA@*Z`FQ%BL?.*4"*X3"/A^W25E2T+#;(F2(L)) M3(K<.4##C+JA);(W7*8G>/)U&-I90U'I^:&.*4U$5Q!LKBN**3'$VHF)1\OT M;L'+R1V'@)S`/Z=/[:MO6!Z=G[!E!KZBF2](<0\\!4I*>A03),QC+#G%7M]W M453^I]_5:EK_``FEK&Z48F7A,J%.M/'V5+!64\"<2"8=K2\E1)(Z8IJIF33. MFH3E,0Y!*!B'(8-P$I@'?5VPLCU$X M`-B+OD],60XEB5I5.H"T-[L@JBGRHDNL+7I>O79KS@``5=T=)G(&`.(F=F$= M-SI35;5_].NH++6.*5<+.EHB9F5,K/V:,<2E([J1P$A(0CFK=`KTWZKM/ZBH M$)%OO)>40``$O-TSV=6&`5CFS<9DF>,,WI;@DGOOOR%WW\=]M*("HB:\%'C# MQR`P'"(+YH[_>+4=K:J+KAF6IRH!6$B20H)<"2`!(`"0&$2?Q1A[&.$:BRHV M)J+6)"020@8^RF0ZHWVPZ=L.F+HZ>BMZ>#;2`A/:K M":E?25-1YF(2=S3JYA^FG`%BK-?56E\\9H82&.,)T.'3,]LTW8;*@,,K.LXI ML)WIV$`B^,H50";+._*1+N8P@&Z[6:*7JC4C3E844VGZ$^,]4*P:;2F:LBOD MA:R)"?(DQ'&\^X%+HG2ZZ*D2Y5:HN0+-+3M&;N9P%/B2'>"$'$GIPB+W:N[6 M47TNPT9G'.42QFNH:;C"C$PR_ER4?A^,>H$\Q@R5$#I/;P\34V?OR&'TX"*" M!A#S#J;UO/O/5:XJS9+$5,:8I^XD))27@D2S.`&13,$I!!G@3T1'&P'IZI-N MZ4:AU4&:G7-2DN9E)"FZ?,0``/M" M(\./B/'2_3RX(/=ZH:4%+J)J!RD\%8XCIG^;JE&L``'````]P<-<8[./' MR#1!'FW87Z>?G.&,01K.3NG6[W=0!3AM`E*R?1%-FEM!7;< M'5EPL^F@L5CBE@EW&8F>)/+MC@,T]-^>^G.PK5_-&*+OCZ38N3"W?2<,Z-". MC)G,";^$M4>#B"DFQS%W(LV4RPFDLS,C+#JB>?;JZX^NFG9RQ9B MO%]NOV8*G8[?!04UBJTN)2XP:5[.VFWU;IJY7&YLT5'7TM.5LN4SJ$*>=/>*592/$.;#&9Q,CC$S;,; MC[H6_4]MM-NK:ZZ4]4\$.T;[;A2VT#(*0\Y/(,LB"",.,/=$`HD(.P#]DNPC ML(\0#COMQWU7LMIM4DK2"$\`<9=6,6RK=-]>^H+.57:[0EKOB4$NX6 M5.JJHM!$LQ8XQ3J'$PDY.41'PU)C&\^YC-J_"6+FXBE0E*$_8-E0"$A".\4D MJ*4"043.40U6;#;2U]V7>ZVTTZK@MU3A'C.)2I:E%944!02"5'-("0,65QC! MK%QT?&,D2-F4TXGB8BWU$8!0RU=NFO(;0 M$/ZEP#G.+O[)8Q@*J>M2D-*5BWQI3FV$2JM7S=T!-_M'9A[=M;3IZ^OV:AN5 M#*5)<:7PEB>"B)%!4.!RXRGPGA&GZDTI27VY6J\K5DN%FJU/)(XE#J2E29\9 M*2J1'`B8B5R>WEDV$1#E#81\1#6I-I6AM*'9EP#'MC=5>T>4+_\`7SWF;3T9 M=3%PP'%X)@KXWKL%3YQO9)*]2<*LY-:H)"94;JQC6$>I))LS+>4405$3`7<0 M#?3$[=;$MZXTK3ZF5=DTC;E'YX5K=#U`5.W^LJG3*+1 MYM2&J5Q"_%"9A8QD".[C,&7$C'E%;UV_U`W5_D,4*EA_$F-:'/6%XA$0JT:V ML>2+6X?R"Q&S%G"QT@HSC'$HY74`B13-%@,<0V+[-2E;O3-H^R4SESU%='': M2G42HI'AH*1CP,R`>T?!$15GJMUWJ2L3:-,VIMFL?[J1[2@>''IYX"+C>WGT M`Y`J%@1ZP>M>QR>6>KNXQR9XPEL>!,-\,0CI#9*'B4N7Z8TM`MSB1P9H1-NP M(8S=N`;J**0AN+N!05C"M$Z%0FDT6PO*?"'A^;*9?:O@2\16&"ES49`DX2AA M=J-LKE15/O\`:_<75:UJD9I/'Q#2!7%IDJGX8E\E,@)D2GPN3!-,2@'(3;W< MH;>._N]^H9FI!RI)E$[Y&UMY2`6R9RY3Z>V-0``.`!L'N#7".V#1'R#1!!H@ MA73L%)=-=;>9XM,QD^DAU+7>[R]398_EY%O%62"QU"RJCMK]#0E3-?KG]43" MXN'0LC+\B;9`A]C%$--/ZD:W4M<[2VIVC>.G:6G0I:FTG(LJ2)E4L,`E, MDPG7IF8TK2T];>5U3'O)55"T(#I'B)`4KA/'$]!X0SNYCXN4;'8R$>RD&AR[ M*-7S1%TT4X<0,@Y341,`;^X=*XA]]E:6T3;!&$L)#D/@Z(;M#-,XWXDDK(XX M3QYG'IC9Q=5JL"912$K/CCK%VVY%#,FR)E"[!X#N&N;]145+ M89J7%N,I,P%*)`/2!.4;&QJ5)@G;@`G;38))44VD9`PY!/(R1P(`J*G33%)!$AE%#$(4PAV,T%76 ML..L-.FF;$UK$^Z.$R1PGRG'EJ+C16]YNFK'FA4N2R-I(S$<@$\3T=L9)`1V M#A[`]FO&/$'=2)@U5/N::JKKG'J:@:(;"A M*7B3(/'`8">&.(,X7K?;>2NVJ8MZ;4TQ4W*H>/B-JQRL\E2&./3TQ6TG_J6+ MC].`JW2;5QF0`-EB96E1C/N_:$2'I_K>(^'VA_7[=2FOTJ)0HM&_4V5)E(LK M)D,,3FQ,N?3$6K]7:LI<38'%E,^\'$R/6,)@'CV18KVINZI;NO>^YJH^1Z;3 M:)-4V$KUMI$147,N[]=67#Q>'L(/G,PY45?/HZ469CSI)HD*DX`.74F(<4RCOQ$1+N(B._$1]HCS#J$U%WV)30.$^J&#RH42M0& M90`/6!P'8.4:I0Y0`I2@``&P``;``>X-?"IY1F0"8YDS,S.<(C]\EO(ROW9L8]DW(HN[>/%E"D33(43&-L`:L/V M$N5-;MH*6HN#G@T+;]4XKDDJ2_+.>L)P!Y"*RO4E05USWH?H[L,+QCU$!!,H&`[ M=SD)VW4Y7;HNX,2"*")N;S%#KOO7O34ZRJW;#8%J9TZTM224$I\S(X+<`E,= M$^.!.$H9W8O8VCT91-:AU`VAS4+K:5A*T@FG41,I1/V3V<">GA?@0A2$*0I0 M`I0V``]G^_2[ID@96\$PRYFO%S%4?O1Q@``$AP@T00:((-$$&B"/*YLKE9"W M6%PBJ9!RA9IE9!RBJHBX;K)RKH4UD%TQ*J@LF;B4Q!`P#Q`=6[L97K"5 ML.LH"TJ`(4,HP(/&*8'O'IK@MVF4IMQMY924D@I.8XB7")YQK8A2E*4C=GTTZHXJ0G(J?.1'#XHD:R;P[HV0!'XE4.L)X)4Y,2Y8'JC+DSWC^Y'-LE M(]?J?L4>DH42'7@ZKCZ(?J&1%UI61U)`([3+CT],0Q<=274`[R>PS6\S3 MDA]EV)4,1P]K76KUX%]=N=6J\)42'@X

(:KN'+>-1=.S'.DS1<.U3@0-@Y ME!'VZVBS6&RZ=HU4%BI6:2B6O.4-)"4E7#,1TQJ%[O\`J'4M?^*7^L?K+AX> M3Q'5%2LGS9GE&-_--X[D^(_+69\17^DHP(I@$Y`.[T8QD7&.8LJ84LPW3$.0 MK3C6VFCGD.:QTV9=PDN>*D#(F>QQWC02J'9NCMTQ.F.Y1,0H^(!K$7FR6?4- M$+=?:5FKH$KSAMU(4D+^[]IBM-QT]5/T=<49"MI12HI^:2.42&#N M,=>8!L'5]GS8/_D6;_O-:M_E9MQ_Z2W?W0C<1NYNJD91?[G(?\94;R/[A/<$ MEI!A$Q/5?U$RDK*/&T=&1<;?)][(24@]6(W9L&+-`5'#IX[74*1-,A1,&Z5J+?;[Y='*EPX`.J,-;]M M+MPWBD3;#K)ZYIJ;ROU<6F'CB5U*[OALCW$$"@S3:12#MZZ\T'N00COPE%@Y MBQ:(B@B/.*BFDWW2W1H;F/\`+[0C2:#1[2G#F9&0/%2LR@9?)4KO9?E'$X0Y MNU6U];1#_,#<1Q=QUDZA$O'[ZV@@94$$_+2G`=`PX\)^S_7[TTUBR3-<=66P M2#&KR3N(L]T@*G-S=(K[Z-77;3!7<\Q05._90+ALJ21>,47;*/.DH#A9,4E> M2+Z?1VHE6\5CS:$-.)FE`P7E/`CCQZY$\A$O/ZOL356:9;BU+2J16!-)/;S_ M`"1,Z-D&,M',92,>-I&-DF;9_'R#)=-TS?,G:)'#5XTTQ[D;191VC>-AG/&8B`'_`#1UX@+_`'`=6V4E7_A6NX[]VGY"OFCJ MBGJLHWO.._9M?>K_`.Z9^;>E_9J^*/$*%7 M)MG^;8_?@^GNO=&_QF'_`)AKSIJVP>ZAR?U#\4<^@[^PKXH/ M)/?PVOYIG]^#Z>Y]T;_&8?\`F&CSGT'?V%?%!Y)[^&U_-,_OP?3W/NC?XS#_ M`,PT><^@[^PKXH/)/?PVOYIG]^#Z>Y]T;_&8?^8:/.?0=_85\4'DGOX;7\TS M^_'SZSCL`?4-Q';W<1US9?"7%NN!TM^'@G*KCU8<>J./D MGO"",C7BESCYIG!/0>_@.N&O>RKTD='>*I:FYCR[U#],>0NJVYII?^*\0P6; M,76Z6Q@5ZW%5,K.`BK.^>S.5'C/F%84$E1BT^9)+\7S%`33>_6.OKXRNUTML MNE%I9@E#CJJ9]MM[*99UK4V$Y3R[W>PY0YNQ&C-O;-4(NU;O@TI(-B.6#IJ5P9J+ANX0(Y(<`4;"LFHF5=(QC!^* M@TWD2@-D%`J`KCQ$^$_P!4-Z^`M+B5=UU31$^@$?JXPKI&(0-) MNU"1DRQ5RL^,6F!J;5<0U6:VNP3+>5\A[ M*QY'CIG*L7Z"W(!Q8QUWS[=06T^72\5NJ60H.,SR?8AHR)``(,DS!*2DRB`F MF/*K97F:<;:2&@@*24.8J^VS`RGCAC+`SAAOI,J847IEP340LU?N)8'%]08E MLU2DT9JJ2Q2Q#=0J]6EVRR[>3K295/+8+D.)%6A$S!P';4*:EK1<+]55@9\O MXCRCX GRAPHIC 4 g8546632.jpg GRAPHIC begin 644 g8546632.jpg M_]C_X``02D9)1@`!`@``9`!D``#_[``11'5C:WD``0`$````9```_^X`#D%D M;V)E`&3``````?_;`(0``0$!`0$!`0$!`0$!`0$!`0$!`0$!`0$!`0$!`0$! M`0$!`0$!`0$!`0$!`0("`@("`@("`@("`P,#`P,#`P,#`P$!`0$!`0$"`0$" M`@(!`@(#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,# M`P,#`P,#`P,#_\``$0@`,`!?`P$1``(1`0,1`?_$`+X```(!!`(#```````` M``````D*!P`!`@@$!@,%"P$``0,%`0$`````````````"``'"0$"`P4&!`H0 M```&`0,"`@8"#0T!``````$"`P0%!@<`$0@A$A,),4%1%!47D2)A<<'1,D*2 M(U,D-)46@:&Q4J34)36U-E:6"E<1``$#`@4"`P0&!P0+``````$1`@,$!0`A M$@8',4$B$PA187&!D:$R0A05L<'14F(C%M)#4S3A\7*2DR1TA"55%__:``P# M`0`"$0,1`#\`G/*N2K2AE#)3_?ESA9= M+B9/S2;P_B9"4`.:$(B9*(\'*EF*.QK;8-P])33LJ'T_KH"&NJ;L7: M#W&..SP&0=M+-XZ#(;IF_P!QO[,4_/-Z'I=+D6_]5+_9 MQE\T;5M_NB?W]`=L]+CU]&VXOM@'?VZP,V5L]XU,M=(YH]C6']`PA>-XZ?,% MSN>D=_.0?2"H^(SQ;YHVL/3:+%OZP^-R@_3^NZ0V7LY_V;71E/8&?LQE MUN1_[N7^SC,N3K6")A'?IT$1'6.78^S7#2;= M31R,.H^!I&D*3J*(/FF+V7C>$[-(N5UE!(T-;.^0.D^ZWQ`9E3I'$^-32\+R:R-E[-&8U)/Y61V8+]`5VIQCM2.OY)#PW3.MQK@Y4.U` MQ%7*Y3@!RE(/=[^4>>KEL7;MLV/LQ([H^CB?4S/&HQE\8,8"]2.C MX0]+5EY(W%=M][Z:YVV!>)7T<+"DLHC.E[GN4)'J(:6N0N"Y(<&->82X'XC0 M:5&8HO'*FK.4""SCK:C2FLL[0-W$*MXMF64DW8'$HAX@G-N/XV^A2;O3E._R M/N4%;>JOQ'S'T_G.:P_Q:,FCMF@P<=1QUP#M*)EHK+9M^D,C0C*OR6%P]QDS M=\EQJGS&XE^7Y`X$O>;)>CPM/8UZ"UB5<2 MLLLDD!3-S]#B(B``.G%XMY1YD&\:+:]IKY)ZRHE`,%2KB(E5[SJ\0T@=53#1 MG!NQ*[>%PME)3010DLFH7$:I2$C8-*M(<>P^.`/^7;A5IR5Y3T2F3L> M65HT`#V]WUFL3Q&CBN5XH&1B7O:F4%$9F9<-6IRCMWD.?8/5HYO41R`=@\8U M%512ENXJID+(G-4*7EP>Z/WM1?HQ'EZ8>'K7R%R[2V^LI72;5II)WSQR$$.# M&@QM?GW_`-6&EI7@#PV?1S]B''O'+,SYHZ:%>LX,J+MD+E$Z/O;94B@>$Y;" M?O(;TE$H#ZM1JQQVG6244$@_'Z,2VO\`3OPK44\E'#M^ MACDGB>W5Y>;4!`(*IDGO@@,90!\4L@X&)H)O3OP1#&^:7;-E$<<9>YSH@=;>GYJYDL!R=G:AT/0@9IVQH*OTX^G?=M(YD-DM4C@$)I)$0P(5'8F&IAT1/?+(%C:A&L MG((J+UZ=?EABSRR/+>+'W*VLUR;"] M,405CV*@;)!LLL7O["!'EZA/4)+>8:C8&R97QVD2/945+"YLDCF%`UCLB&CQ M!QZ.4(O7$H7I/])%/:74W)?)$#):\?S:&F7$N9,S"NIQ.DL*%$*]<,*IM MNQ`Z6YMSE,'4^X]4^SH;U=-!4&OT%I*.Z:AU/\1_B]IQ)*W4`7%K2XYZ?NC^ M%/W6+F2DWC$U_QI%R#4MUQ)FO+\7:H$ZB1)!-G.Y$L,_"SGNXF!56/ MD&[\4@5`!*"R!R".X:=_G3;EPLVYJ6[5@E9;+C24I@E(.E_EQ:7AK@H"./=, M#]Z>;[:[AM*6S4[V"[TE54ZX5`>DLNIKD_=0>(_IQ$O.CRC:]RKO,MF6CY*< MT')\PS9-9II8VB]DI[&6;F,'?X`&$PCV7#GJ M,OG&5J_IRY43*VS-D):^`MIYP#^\Y'";X/'P..0YG]*]IY-O;MSVNMEH[V^- M',F+IX7'MH4K#\6`_!#A>ODYQ`YA<0J\O7,G,)QWAIU,LW))VGV"3G\4.II' MQ4HIY(L`.W3@I807.5`7S5`XB82D.81#1J<>;KEO2BV=22!U):*$:_W3.\J]JYJ6@-]G4X+_T8;%AL>T:[>4L2 M7"[5R,*9M@8$:[W!Y).2Y`8)AC+E/6\AS2BZ2WF;M#@\Z.,V<8EH#># MS-3K+AL("/4XM3CZM]%SZ==Z27+BO,T,:3VZ` M$YKAA'D2S?2.!\W1\:R=2,G(8GR(QCH]DW5=/'SUW4Y=!JS9M40,JX"2[^%/JPYD:=*?KPLGY0_&WEO4N4E2O\`*XYR1B_%L/!SZ.07UPAY6I15C9/8 M5PTC(%*)E2LU9E^::4;KD$J)P;`B)Q.0=@,=_J5Y!XNO/'0L]LK:&OW#^(:8 M'0M&MC.X>0`B_,'$??IAXQY4L')8N]=2UM!MYD)%0V9Q\M[OX%)7YH<%C\ZZ M:@8O@K:4Y-5$K^1O^.&=?(H)15/*DG`>J^[DW$YS$AVSDQMNO9OH>?2]^(9R M_!44TCXHFPS>U(>U>/N]RCUB!^ M<-]52.CU2CV]%U@[O#(#M^HGG^2K_&<<["F!MSCHJ*QI\93JR(A?O=3ED$&& M2]-GIGA+(.1.0XB^K!U4='($;&T$%LCP1]I,@`H0KAD]NAX!>W??ZI`_E*`@ M/J`=NOT:"AK4`4ESM(!)ZE.Y]Y[XD'S5<@Q``T!&M3L,\;?/.72-8^9C"UY7($ M,#3W0]<-(7.F5C*]`GJ3;HE&4JEWK[N(FXB2:`J5S&R[(R2B;AJL4>QPB54# M%W#N26(`@(&*`Z"BWW"XV"]07:U2B&X4=3K:]G74Q?O`A05S'?!C76UV_AP!0CL1]6/3X:Q/5L'XIH6)*:F9*L8[K,968D%>WWEPV MC2=IG;P2[`9[(+F.LL;\950P^O66\WBIOMTGO5U<9*ZHD<][CFI?UQ?8;+1; M;M<%HM3`RCIX1&P#+)OV?UX%KQH\MW-N$.[<'JWCS/9-S\3VSCB.W>54 MV]H`J/-#M3@2KA&&`A0434<,=L?AJ];7Y/K=_P!1B.^M$^O'?7.MAM=++<*DZ M8(F*\(NH)T]R8$!://HX'1$0L^@G>6+F_(AXS2+BL?N8TSI3L[DTC/K"_C&C M8#".PF,8=O8/HT0]I]+W+=SJFLEHZ6FU-5\LLK0Q@'4N*Y`=5(R&&%N/J3XR MI&AD$M9-.N4;8R"O8$Y]?GCN>%L9Y&Y\6^@\H>4]"_@##]-XAJAP*AA9E[<%W;MB-R@4FVP!L``&VP=.F^X].FF3CB;%]CNI=W+G'[Q M/TX?2 M9VU7FT0J[JDV!BA995C6HAK.Q"3]Q$LX:/$_N"^L15*`&!V21 M[4I5)T4>O<`@H`_9T/D^WN3XXS03T]Z?&?"6&.<-*Y(3FU/JP\\-\XS=**Z" M6WB5I4.TM!!]HRQT:-\W#@;(9(D\?LL^4Y-C!0JLG)WV4>GB:(H^,^0:-J[` MS;Y!(UEF3E.HNI[HF9L@BGN983&*76Z_^&\IMM,=RALM48B_2(Q]K,$ZG`YY M)])QY6\L["-R?127&(2H3K=]E`@0(G5?JQKOSX\WK"V+<`2$]Q0S7BK)N:I" MT5J'@H>.<)VIM%Q:KSWRPSS',[_Y@L=HVY)6;9K*>KN@>T-:` M2`O=P4$KVSP&R5_]!_-9[#*,H^FX'BI04?#+-)U2SNUBJ@3HLFP?6Y1B!A-U M`IP.0/8.B7B](&PG3-'XJN$R.U,\R+40%TD'R<@>F&(F]1>]F-:UD=&2TM+U MC?D#U_O,,2XH\U+A-<<7X_LUQY'XGJ-KL%.KLK:*M,V))A)P%B>1;96;B7K( MZ9C-E64F*I.T1'H`#Z-!I?.&^2[7=ZJWQ6:KDIXYG!C@%U,7P'(=VH3\<$_; M.5=DU5OAJJJY4\-5)$TO8Y5:XC/_`$>['6^0OF*<'+'@3-M>@N4N'96:G,29 M%AX:-9VE!5Y(RLC4I=I',&J8)AXSIV[5(F0H;;G,`>O7MVOQ-R=2;EMU;/9* M^.(5D4CW>4[0UK'`@KED&YDKFF6-=N/D+9-=8*ZWT]TII*A],0P9DEVDH"G5 M2F03KG@2?E!^4RO8TJGRHY25H[>((G'SF'\2SC,2C*'("3B.OE[C'28B#$!V M4C8U4NZP[+KE`O80S_>H?U!,J72<<;.D)8`?QE0TGQ%$=&QS2`&GH1F??AG> M&^&G.(W7NUA5[@8XB&@*"HU`M)1??AK9%NFD4@)]`)N``&W:'02[!N&X`'H# M;U!MZ-!(QNENEQ+BI*DJ<_?WZ]\%T6M+@Y!DT!HZ!H'L';')U=BN*TL+%:6% MCYI6>J%D5QG+,RJ%!OR[=7*E_4351I]D6152/:I4R2J:I(XR:J9R"`E,41`0 M'H.IE-H7>T1[6MH_&TS'?APH\T!/".H#D7$:5\LM;^:5Q$$[OYN1,:G[78D$ MXB3Y:9#WW^6U]$?;_!%EW'V]?A>^XZW9O5J3Y9!'[`TNS"'^F:HZ]VISG.-;1ZW!"?,:OTJH^6$ M;)6DO<8*E9`CO!U'T9?+&`X\R0&XCCO((!U$1_@JS[?S1>L[=PV@0N!K:0O` MR61I/Z<\6Q;=N.K2VFD,?;4TKAB_RB?*+O<(&!5C>;Y$NB$4;Q""H`I'1JQ0,Z.4%ER@D!"*!+ZA_4)4B&386P:B=\[ MR145/F.#&.&3XXR"FD'($=LAWP2?$G$$88W<>Z88VQ-\4430I<#FUS@<\QF1 M]6#%\VLE9LJ.0*E!T2W2]`I@04=*?$H@$F;63.5Q8$K:^7D`9NE9*4J"#>), MS@$0[WZ;Q4Q4EA`H)BEM"TVVKI:B6L:'O$B^)SBXE1DJKXL\UR]V'OW1W%>(G^D)^47[^EA8KQ$_P!(3\HOW]+"Q__9 ` end

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents

Table of Contents