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 25, 2017

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 24, 2017, SAP SE, (“SAP”), issued a press release (the “Press Release”) announcing SAP’s preliminary financial results for the fourth quarter and twelve months ended December 31, 2016. 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 2015 filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

2

EXHIBITS

Exhibit No.	Exhibit
99.1	Press Release dated January 24, 2017

3

SIGNATURES

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

SAP SE
(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 25, 2017

4

EXHIBIT INDEX

Exhibit No.	Exhibit
99.1	(i) Press Release dated January 24, 2017

5

EX-99.1

Exhibit 99.1

SAP Q4 2016 Quarterly Statement

SAP Hits Increased 2016 Guidance – Raises 2020 Targets

¾	New Cloud Bookings Soar 40% in Q4; Cloud Backlog Surges 47% to €5.4 Billion at Year-End
¾	Full Year Cloud Subscription and Support Revenue Up 31% to €2.99 Billion (IFRS) and Up 31% to €3.01 Billion (Non-IFRS at Constant Currencies)
¾	Full Year Cloud and Software Revenue Up 7% (IFRS) and Up 8% (Non-IFRS at Constant Currencies)
¾	Full Year Operating Profit Up 20% to €5.12 Billion (IFRS) and Up 4% to €6.60 Billion (Non-IFRS at Constant Currencies)
¾	Full Year EPS Up 18% to €3.03 (IFRS) and Up 3% to €3.89 (Non-IFRS)
¾	Targeting More Than 2.6x in Cloud to Reach up to €29 Billion Total Revenue in 2020

Cloud Subscriptions &		Share of	Total Revenue
Support Revenue		Predictable Revenue
in € millions		in percent	in € millions
IFRS	Non-IFRS	FY 2016	IFRS	Non-IFRS
2,993	2,995	61%	22,062	22,067
+31%	+30% (+31% cc)	+2 p.p.	+6%	+6% (+7% cc)

  “SAP’s outstanding 2016 performance is the latest in our seven year run of profitable growth. We expanded our addressable market, acquired best in class assets and innovated a new generation of ERP with SAP S/4HANA. We are the leader in the business software industry with a consistent trifecta of strong software sales, fast cloud growth and operating income expansion. Our innovation agenda is accelerating in Machine Learning, the Internet of Things and Blockchain. SAP is winning big and we have enormous confidence in our accelerated 2020 ambition!”   Bill McDermott, CEO     “SAP is consistently delivering on its promise and achieved all raised guidance metrics for the full year. Furthermore, operating cash flow was strong with a 27% increase in 2016. New cloud bookings growth of 40% for the fourth quarter was exceptional. Our strong backlog paired with our robust pipeline position us for yet another year of profitable growth in 2017 and allow us to confidently raise our high level 2020 ambition.”     Luka Mucic, CFO  

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 1

Walldorf, Germany – January 24, 2017

SAP SE (NYSE: SAP) today announced its preliminary financial results for the fourth quarter and twelve months ended December 31, 2016.

Business Highlights

Financial Highlights

Full Year 2016

For the full year 2016, cloud and software revenue grew by 7% (IFRS) or 8% (non-IFRS at constant currencies), above the midpoint of the full year outlook raised in October (6.5% to 8.5% growth non-IFRS at constant currencies). Cloud subscriptions and support revenue was €2.99 billion (IFRS) or €3.01 billion (non-IFRS at constant currencies), achieving the full year outlook raised in October (€3.00 to €3.05 billion non-IFRS at constant currencies). New cloud bookings¹, the key measure for SAP’s sales success in the cloud, increased 31% in the full year to €1.15 billion. Cloud subscriptions and support backlog² increased 47%, reaching €5.4 billion at year-end. New cloud bookings and cloud backlog are SAP’s lead indicators for continued strong cloud growth.

For the full year, operating profit was €5.12 billion (IFRS) or €6.60 billion (non-IFRS at constant currencies), achieving the full year outlook raised in October (€6.5 to €6.7 billion non-IFRS at constant currencies). Earnings per share increased 18% to €3.03 (IFRS) and 3% to €3.89 (non-IFRS).

SAP’s rapidly expanding cloud business together with solid growth in support revenue continued to drive the share of more predictable revenue. The total of cloud subscriptions & support revenue and software support revenue exceeded 61% of total revenue for the full year 2016, up 2 percentage points.

For the twelve months ended December 31, operating cash flow was €4.63 billion (2015: €3.64 billion), an increase of 27% year-over-year, and free cash flow increased 21% year-over-year to €3.63 billion (2015: €3.00 billion).

Fourth Quarter 2016

For the fourth quarter, cloud and software revenue grew 7% (IFRS) year-over-year or 6% (non-IFRS at constant currencies). SAP continues to outpace its main competitor in cloud and software revenue growth. Cloud subscriptions and support revenue grew 31% year-over-year to €827 million (IFRS) or 29% (non-IFRS at constant currencies). New cloud bookings were up 40% in the fourth quarter and reached €483 million.

For the fourth quarter, operating profit was up 14% year-over-year to €1.94 billion (IFRS) or 2% (non-IFRS at constant currencies). Earnings per share increased 18% year-over-year to €1.26 (IFRS) and 9% to €1.52 (non-IFRS).

SAP S/4HANA

S/4HANA adoption doubled year over year to more than 5,400 customers. In the fourth quarter approximately 1,300 additional customers signed up of which approximately 30% are net new SAP customers. Running a live business on a massively simplified architecture is becoming a commercial imperative for more and more customers in the new digital economy. Nike and Ameco Beijing selected S/4HANA in the fourth quarter.

SAP Cloud Platform

The SAP Cloud Platform allows customers to extend functionalities, build new fast-paced applications with rapid development tools, and integrate across applications and deployment models. The SAP Cloud Platform is instrumental in the Internet of Things (IoT) revolution by connecting a rapidly growing number of intelligent devices and machines with people and processes to achieve superior business outcomes. Burger King Brazil selected SAP Cloud Platform to analyze sales in real time to improve marketing strategies, manage store performance, and improve the customer experience through the Internet of Things, Gamification, and mobility.

¹ New cloud bookings consist of order entry of a given period that is expected to be classified as cloud subscriptions and support revenue and results from purchases by new customers and from incremental purchases by existing customers. Consequently, orders to renew existing contracts are not included. The order amount must be committed. Consequently, due to their pay-per-use nature, business network transaction fees which do not include a committed minimum consumption are not reflected in the bookings metric (e.g. SAP Ariba and SAP Fieldglass transaction-based fees). Amounts included in the measures are generally annualized.

² Cloud subscription and support backlog represents expected future cloud subscriptions & support revenue that is contracted but not yet invoiced and thus not recorded in deferred revenue.

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 2

Human Capital Management

SAP continues to gain traction with its cloud-based Human Capital Management solutions. SAP delivers total workforce management solutions globally across permanent and contingent labor. SAP is infusing intelligent services like automated matching of resumes to open positions and machine learning to root out bias in the workplace while promoting diversity and inclusion. Forrester recently named SAP SuccessFactors as a long-time worldwide leader for Learning and Performance Management. The customer count for SAP SuccessFactors Employee Central, which is the core of our Human Capital Management offerings, exceeded 1,580 at the end of the fourth quarter. Companies like Mercedes-AMG and Valentino purchased SAP’s workforce management solutions in the fourth quarter.

Customer Engagement and Commerce

SAP seamlessly combines customer engagement and commerce (CEC) for an increasingly omni-channel world. Our hybris solution serves both B2C and B2B across a wide range of industries, including retail, telco, financial services, public sector, and manufacturing. SAP is unique because it also enables businesses to connect the front and back office in real-time and fulfill ecommerce in one end-to-end value chain. CEC saw strong double-digit year-over-year new cloud bookings and cloud subscriptions and support revenue growth in the fourth quarter. Brooks Brothers selected SAP’s customer engagement and commerce solutions in the fourth quarter.

Business Networks

SAP is helping customers of all sizes embrace an increasingly interdependent world. Each of SAP’s business network solutions connects a large ecosystem of customers, suppliers and partners. These network solutions are highly synergistic to SAP’s other offerings. Cloud subscriptions and support revenue in the SAP Business Network segment was up 19% at constant currencies in the full year 2016.

Over the past 12 months, approximately 2.5 million connected companies trade over $885 billion of commerce on the SAP Ariba network, growing its commerce volume close to 20% year-over-year. More than 45 million end users process travel and expenses effortlessly with Concur and customers managed over 3.1 million flexible workers in approximately 135 countries with SAP Fieldglass.

Regional Revenue Performance in the Fourth Quarter 2016

The Company had a strong performance in the EMEA region, with an increase in cloud and software revenue of 9% (IFRS) and 10% (non-IFRS at constant currencies). Cloud subscriptions and support revenue grew 35% (IFRS) and 37% (non-IFRS at constant currencies). In EMEA, SAP had double-digit software licenses revenue growth in Germany and the UK.

In the Americas region, the Company grew cloud and software revenue by 5% (IFRS) and 2% (non-IFRS at constant currencies) and cloud subscriptions and support revenue by 27% (IFRS) and 24% (non-IFRS at constant currencies). In Latin America, SAP had strong double-digit growth in software licenses revenue in Mexico.

In the APJ region cloud and software revenue was up 9% (IFRS) and 5% (non-IFRS at constant currencies), with cloud subscriptions and support revenue growing by 54% (IFRS) and 48% (non-IFRS at constant currencies). In APJ, SAP had double-digit software licenses revenue growth in China, India and Japan.

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 3

Financial Results at a Glance

Fourth Quarter 20161)
	IFRS						Non-IFRS2)
€ million, unless otherwise stated	Q4 2016		Q4 2015		D in %		Q4 2016		Q4 2015		D in %		D in % const. curr.
New Cloud Bookings3)		N/A		N/A		N/A		483		344		40		37
Cloud subscriptions and support		827		631		31		827		632		31		29
Software licenses and support		4,933		4,745		4		4,934		4,745		4		3
Cloud and software		5,760		5,377		7		5,761		5,378		7		6
Total revenue		6,724		6,342		6		6,724		6,343		6		5
Share of predictable revenue (in %)		53		51		2pp		53		51		2pp
Operating profit		1,936		1,700		14		2,371		2,282		4		2
Profit after tax		1,510		1,278		18		1,818		1,670		9
Basic earnings per share (€)		1.26		1.07		18		1.52		1.40		9
Number of employees (FTE)		84,183		76,986		9		N/A		N/A		N/A		N/A

Full Year 20161)
	IFRS						Non-IFRS2)
€ million, unless otherwise stated	Q1–Q4 2016		Q1–Q4 2015		D in %		Q1–Q4 2016		Q1–Q4 2015		D in %		D in % const. curr.
New Cloud Bookings3)		N/A		N/A		N/A		1,147		874		31		31
Cloud subscriptions and support		2,993		2,286		31		2,995		2,296		30		31
Software licenses and support		15,431		14,928		3		15,434		14,930		3		4
Cloud and software		18,424		17,214		7		18,428		17,226		7		8
Total revenue		22,062		20,793		6		22,067		20,805		6		7
Share of predictable revenue (in %)		61		60		2pp		61		60		2pp
Operating profit		5,121		4,252		20		6,629		6,348		4		4
Profit after tax		3,618		3,056		18		4,650		4,501		3
Basic earnings per share (€)		3.03		2.56		18		3.89		3.77		3
Number of employees (FTE)		84,183		76,986		9		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 14 in this Quarterly Statement.

³⁾ As this is an order entry metric, there is no IFRS equivalent.

Due to rounding, numbers may not add up precisely.

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 4

Business Outlook 2017

The Company is providing the following 2017 outlook:

– Based on the continued strong momentum in SAP’s cloud business the Company expects full year 2017 non-IFRS cloud subscriptions and support revenue to be in a range of €3.8 billion - €4.0 billion at constant currencies (2016: €2.99 billion), in line with the previous 2017 ambition which was raised at the beginning of 2016. The upper end of this range represents a growth rate of 34% at constant currencies.

– The Company expects full year 2017 non-IFRS cloud & software revenue to increase by 6% - 8% at constant currencies (2016: €18.43 billion).

– The Company expects full year 2017 non-IFRS total revenue in a range of €23.2 billion to €23.6 billion at constant currencies (2016: €22.07 billion). This is above the previous 2017 ambition which was raised at the beginning of 2016.

– The Company expects full-year 2017 non-IFRS operating profit to be in a range of €6.8 billion - €7.0 billion at constant currencies (2016: €6.63 billion). This is above the previous 2017 ambition which was raised at the beginning of 2016.

While the Company’s full-year 2017 business outlook is at constant currencies, actual currency reported figures are expected to be impacted by currency exchange rate fluctuations as we progress through the year. The 2017 business outlook at constant currencies replaces the formerly communicated 2017 ambition which was at actual currencies.

Ambition 2020

Looking beyond 2017, SAP is also raising its 2020 ambition to reflect the Company’s consistent fast growth in the cloud, solid software momentum and operating profit expansion as well as the exchange rate development. Assuming an exchange rate environment comparable to 2016 SAP strives to reach the following in 2020:

– €8.0 - €8.5 billion non-IFRS cloud subscriptions and support revenue (previously €7.5 - €8.0 billion)

– €28 - €29 billion non-IFRS total revenue (previously €26 - €28 billion)

– €8.5 - €9.0 billion non-IFRS operating profit (previously €8 - €9 billion)

SAP continues to expect the share of more predictable revenue (defined as the total of cloud subscriptions & support revenue and software support revenue) to reach 70% - 75% in 2020.

SAP will discuss the key drivers behind the long term growth aspirations at the Company’s Capital Markets Day in New York on February 9^th, 2017.

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 5

Financial and Non-Financial Key Facts

€ millions, unless otherwise stated	Q1 2015		Q2 2015		Q3 2015		Q4 2015		TY 2015		Q1 2016		Q2 2016		Q3 2016		Q4 2016		TY 2016
Revenues
Cloud subscriptions and support (IFRS)		503		552		599		631		2,286		677		720		769		827		2,993
Cloud subscriptions and support (non-IFRS)		509		555		600		632		2,296		678		721		769		827		2,995
% change – yoy		131		129		116		76		109		33		30		28		31		30
% change constant currency – yoy		95		92		90		60		82		33		33		29		29		31
Software licenses (IFRS)		696		979		1,014		2,146		4,835		609		1,040		1,034		2,177		4,860
Software licenses (non-IFRS)		696		979		1,015		2,146		4,836		609		1,042		1,034		2,177		4,862
% change – yoy		12		2		7		15		10		–13		6		2		1		1
% change constant currency – yoy		1		–7		4		11		4		–10		10		2		0		1
Software support (IFRS)		2,454		2,531		2,509		2,600		10,093		2,564		2,598		2,653		2,756		10,571
Software support (non-IFRS)		2,454		2,531		2,509		2,600		10,094		2,564		2,598		2,653		2,756		10,572
% change – yoy		17		17		12		11		14		5		3		6		6		5
% change constant currency – yoy		7		7		6		6		7		5		6		6		5		6
Software licenses and support (IFRS)		3,150		3,510		3,523		4,745		14,928		3,172		3,639		3,686		4,933		15,431
Software licenses and support (non-IFRS)		3,150		3,510		3,524		4,745		14,930		3,173		3,640		3,687		4,934		15,434
% change – yoy		16		13		11		13		13		1		4		5		4		3
% change constant currency – yoy		5		3		6		9		6		2		7		5		3		4
Cloud and software (IFRS)		3,653		4,062		4,122		5,377		17,214		3,850		4,359		4,455		5,760		18,424
Cloud and software (non-IFRS)		3,659		4,065		4,124		5,378		17,226		3,851		4,361		4,456		5,761		18,428
% change – yoy		24		21		19		18		20		5		7		8		7		7
% change constant currency – yoy		12		9		12		13		12		6		11		9		6		8
Total revenue (IFRS)		4,497		4,970		4,985		6,342		20,793		4,727		5,237		5,375		6,724		22,062
Total revenue (non-IFRS)		4,502		4,972		4,987		6,343		20,805		4,728		5,239		5,375		6,724		22,067
% change – yoy		22		20		17		16		18		5		5		8		6		6
% change constant currency – yoy		10		8		10		11		10		6		9		8		5		7
Share of predictable revenue (IFRS, in %)		66		62		62		51		60		69		63		64		53		61
Share of predictable revenue (non-IFRS, in %)		66		62		62		51		60		69		63		64		53		61
Profits
Operating profit (IFRS)		638		701		1,214		1,700		4,252		813		1,269		1,103		1,936		5,121
Operating profit (non-IFRS)		1,056		1,394		1,616		2,282		6,348		1,104		1,516		1,638		2,371		6,629
% change		15		13		19		7		13		5		9		1		4		4
% change constant currency		–2		1		15		3		5		4		11		1		2		4
Profit after tax (IFRS)		413		469		895		1,278		3,056		570		813		725		1,510		3,618
Profit after tax (non-IFRS)		697		960		1,173		1,670		4,501		763		979		1,089		1,818		4,650
% change		5		2		16		6		8		9		2		–7		9		3
Margins
Cloud subscriptions and support gross margin (IFRS, in %)		55.3		56.5		57.9		51.8		55.3		57.5		57.0		56.7		55.2		56.5
Cloud subscriptions and support gross margin (non-IFRS, in %)		65.1		65.7		68.8		63.0		65.6		66.3		65.2		64.9		63.1		64.8
Software and support gross margin (IFRS, in %)		82.8		84.0		85.0		86.1		84.7		84.2		86.1		85.4		87.1		85.9
Software and support gross margin (non-IFRS, in %)		85.1		86.1		86.7		87.7		86.6		85.9		87.4		87.4		88.5		87.4
Cloud and software gross margin (IFRS, in %)		79.0		80.3		81.1		82.1		80.8		79.5		81.3		80.5		82.5		81.1
Cloud and software gross margin (non-IFRS, in %)		82.3		83.3		84.1		84.8		83.8		82.4		83.7		83.5		84.8		83.7
Gross margin (IFRS, in %)		66.8		69.0		70.7		72.4		70.0		67.0		70.4		69.4		73.0		70.2
Gross margin (non-IFRS, in %)		70.6		72.4		73.6		75.6		73.3		69.7		72.7		72.7		75.6		72.9
Operating margin (IFRS, in %)		14.2		14.1		24.3		26.8		20.5		17.2		24.2		20.5		28.8		23.2
Operating margin (non-IFRS, in %)		23.5		28.0		32.4		36.0		30.5		23.4		28.9		30.5		35.3		30.0

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 6

€ millions, unless otherwise stated	Q1 2015		Q2 2015		Q3 2015		Q4 2015		TY 2015		Q1 2016		Q2 2016		Q3 2016		Q4 2016		TY 2016
AT&S Segment1) – Cloud subscriptions and support gross margin (in %)		50		51		56		51		52		54		52		51		49		52
AT&S Segment1) – Gross margin (in %)		71		73		74		77		74		70		73		74		77		74
AT&S Segment1) – Segment margin (in %)		34		39		43		46		41		34		40		40		45		40
SAP BN Segment2) – Cloud subscriptions and support gross margin (in %)		75		75		77		72		75		75		76		77		75		76
SAP BN Segment2) – Gross margin (in %)		68		68		71		65		68		67		68		68		66		67
SAP BN Segment2) – Segment margin (in %)		18		16		24		20		19		16		18		20		16		18
Key Profit Ratios
Effective tax rate (IFRS, in %)		13.6		26.4		27.1		22.4		23.4		23.3		28.9		28.4		22.5		25.4
Effective tax rate (non-IFRS, in %)		22.3		27.8		28.0		25.1		26.1		26.2		29.6		29.7		23.7		26.9
Earnings per share, basic (IFRS, in €)		0.35		0.39		0.75		1.07		2.56		0.48		0.68		0.61		1.26		3.03
Earnings per share, basic (non-IFRS, in €)		0.58		0.80		0.98		1.40		3.77		0.64		0.82		0.91		1.52		3.89
Order Entry
New Cloud Bookings		117		199		213		344		874		145		255		265		483		1,147
Deferred cloud subscriptions and support revenue (IFRS, quarter end)		793		789		782		957		957		953		1,003		1,081		1,271		1,271
Orders – Number of on-premise software deals (in transactions)		12,037		13,504		14,027		17,871		57,439		12,884		14,468		13,048		16,891		57,291
Share of orders greater than € 5 million based on total software order entry volume (in %)		23		24		24		31		27		17		29		26		34		29
Share of orders smaller than € 1 million based on total software order entry volume (in %)		49		41		44		34		40		48		38		40		35		38
Liquidity and Cash Flow
Net cash flows from operating activities		2,366		410		466		397		3,638		2,482		439		707		1,000		4,628
Purchase of intangible assets and property, plant, and equipment (without acquisitions)		–139		–137		–148		–212		–636		–168		–237		–261		–335		–1,001
Free cash flow		2,227		273		317		184		3,001		2,313		202		446		665		3,627
% of total revenue (IFRS)		50		5		6		3		14		49		4		8		10		16
% of profit after tax (IFRS)		539		58		35		14		98		406		25		61		44		100
Group liquidity, gross		5,333		4,180		4,608		3,559		3,559		5,853		4,347		4,388		4,673		4,673
Group debt		–10,524		–10,432		–10,428		–9,174		–9,174		–9,080		–8,593		–8,134		–7,825		–7,825
Group liquidity, net		–5,191		–6,251		–5,820		–5,615		–5,615		–3,227		–4,245		–3,746		–3,152		–3,152
Days’ sales outstanding (DSO, in days)3)		67		68		69		71		71		72		73		74		74		74
Financial Position
Cash and cash equivalents		4,635		3,923		3,844		3,411		3,411		5,743		4,206		4,112		3,702		3,702
Goodwill		22,896		22,300		22,222		22,689		22,689		21,922		22,354		22,276		23,311		23,311
Total assets		43,753		41,088		40,649		41,390		41,390		42,884		41,788		41,601		44,354		44,354
Equity		22,117		20,801		21,540		23,295		23,295		22,920		22,963		23,764		26,382		26,382
Equity ratio (total equity in % of total assets)		51		51		53		56		56		53		55		57		59		59
Non-Financials
Headcount (quarter end)4)		74,551		74,497		75,643		76,986		76,986		78,230		79,962		82,426		84,183		84,183
Employee retention (in %, rolling 12 months)		93.3		92.6		91.9		91.8		91.8		92.0		92.6		93.4		93.7		93.7
Women in management (in %, quarter end)		22.3		22.9		23.2		23.6		23.6		23.6		24.1		24.3		24.5		24.5
Greenhouse gas emissions (in kilotons)		145		125		110		75		455		120		95		85		80		380

¹⁾ Applications, Technology & Services Segment

²⁾ SAP Business Network Segment

³⁾ 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.

⁴⁾ In full-time equivalents

Due to rounding, numbers may not add up precisely.

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 7

Consolidated Income Statements of SAP Group (IFRS) – Quarter

€ millions, unless otherwise stated	Q4 2016		Q4 2015		D in %
Cloud subscriptions and support		827		631		31
Software licenses		2,177		2,146		1
Software support		2,756		2,600		6
Software licenses and support		4,933		4,745		4
Cloud and software		5,760		5,377		7
Services		963		965		0
Total revenue		6,724		6,342		6
Cost of cloud subscriptions and support		–371		–304		22
Cost of software licenses and support		–637		–660		–3
Cost of cloud and software		–1,008		–964		5
Cost of services		–806		–787		2
Total cost of revenue		–1,814		–1,751		4
Gross profit		4,909		4,591		7
Research and development		–857		–796		8
Sales and marketing		–1,833		–1,755		4
General and administration		–277		–281		–1
Restructuring		–7		–59		–88
Other operating income/expense, net		1		1		>100
Total operating expenses		–4,787		–4,642		3
Operating profit		1,936		1,700		14
Other non-operating income/expense, net		–54		–28		91
Finance income		125		52		>100
Finance costs		–59		–76		–23
Financial income, net		67		–24		<-100
Profit before tax		1,949		1,647		18
Income tax expense		–438		–369		19
Profit after tax		1,510		1,278		18
Attributable to owners of parent		1,513		1,281		18
Attributable to non-controlling interests		–2		–3		–18
Earnings per share, basic (in €)1)		1.26		1.07		18
Earnings per share, diluted (in €)1)		1.26		1.07		18

¹⁾ For the three months ended December 31, 2016 and 2015, the weighted average number of shares was 1,199 million (diluted 1,199 million) and 1,198 million (diluted: 1,199 million), respectively (treasury stock excluded).

Due to rounding, numbers may not add up precisely.

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 8

Consolidated Income Statements of SAP Group (IFRS) – Full Year

€ millions, unless otherwise stated	Q1–Q4 2016		Q1–Q4 2015		D in %
Cloud subscriptions and support		2,993		2,286		31
Software licenses		4,860		4,835		1
Software support		10,571		10,093		5
Software licenses and support		15,431		14,928		3
Cloud and software		18,424		17,214		7
Services		3,638		3,579		2
Total revenue		22,062		20,793		6
Cost of cloud subscriptions and support		–1,301		–1,022		27
Cost of software licenses and support		–2,181		–2,291		–5
Cost of cloud and software		–3,482		–3,313		5
Cost of services		–3,088		–2,932		5
Total cost of revenue		–6,570		–6,245		5
Gross profit		15,492		14,548		6
Research and development		–3,041		–2,845		7
Sales and marketing		–6,294		–5,782		9
General and administration		–1,005		–1,048		–4
Restructuring		–28		–621		–96
Other operating income/expense, net		–4		1		<-100
Total operating expenses		–16,942		–16,541		2
Operating profit		5,121		4,252		20
Other non-operating income/expense, net		–234		–256		–9
Finance income		230		241		–4
Finance costs		–268		–246		9
Financial income, net		–38		–5		>100
Profit before tax		4,849		3,991		21
Income tax expense		–1,230		–935		32
Profit after tax		3,618		3,056		18
Attributable to owners of parent		3,631		3,064		18
Attributable to non-controlling interests		–13		–8		56
Earnings per share, basic (in €)1)		3.03		2.56		18
Earnings per share, diluted (in €)1)		3.03		2.56		18
1) For the twelve months ended December 31, 2016 and 2015, the weighted average number of shares was 1,198 million (diluted 1,199 million) and 1,197 million (diluted: 1,198 million), respectively (treasury stock excluded). Due to rounding, numbers may not add up precisely.

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 9

Consolidated Statements of Financial Position of SAP Group (IFRS)

as at December 31
€ millions	2016		2015
Cash and cash equivalents		3,702		3,411
Other financial assets		1,124		351
Trade and other receivables		5,975		5,274
Other non-financial assets		587		468
Tax assets		238		235
Total current assets		11,626		9,739
Goodwill		23,311		22,689
Intangible assets		3,786		4,280
Property, plant, and equipment		2,580		2,192
Other financial assets		1,358		1,336
Trade and other receivables		125		87
Other non-financial assets		528		332
Tax assets		448		282
Deferred tax assets		591		453
Total non-current assets		32,728		31,651
Total assets		44,354		41,390
€ millions	2016		2015
Trade and other payables		1,290		1,088
Tax liabilities		318		230
Financial liabilities		1,813		841
Other non-financial liabilities		3,698		3,407
Provisions		183		299
Deferred income		2,433		2,001
Total current liabilities		9,734		7,867
Trade and other payables		127		81
Tax liabilities		376		402
Financial liabilities		6,481		8,681
Other non-financial liabilities		470		331
Provisions		217		180
Deferred tax liabilities		424		448
Deferred income		143		106
Total non-current liabilities		8,238		10,228
Total liabilities		17,972		18,095
Issued capital		1,229		1,229
Share premium		599		558
Retained earnings		22,287		20,044
Other components of equity		3,346		2,561
Treasury shares		–1,099		–1,124
Equity attributable to owners of parent		26,361		23,267
Non-controlling interests		21		28
Total equity		26,382		23,295
Total equity and liabilities		44,354		41,390

Due to rounding, numbers may not add up precisely.

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 10

Consolidated Statements of Cash Flows of SAP Group (IFRS)

€ millions	Q1–Q4 2016		Q1–Q4 2015
Profit after tax		3,618		3,056
Adjustments to reconcile profit after taxes to net cash flows from operating activities:
Depreciation and amortization		1,268		1,289
Income tax expense		1,230		935
Financial income, net		38		5
Decrease/increase in sales and bad debt allowances on trade receivables		51		45
Other adjustments for non-cash items		39		–2
Decrease/increase in trade and other receivables		–725		–844
Decrease/increase in other assets		–252		–313
Decrease/increase in trade payables, provisions, and other liabilities		530		757
Decrease/increase in deferred income		418		218
Interest paid		–190		–172
Interest received		79		82
Income taxes paid, net of refunds		–1,477		–1,420
Net cash flows from operating activities		4,628		3,638
Business combinations, net of cash and cash equivalents acquired		–106		–39
Cash receipts from derivative financial instruments related to business combinations		0		266
Total cash flows for business combinations, net of cash and cash equivalents acquired		–106		226
Purchase of intangible assets or property, plant, and equipment		–1,001		–636
Proceeds from sales of intangible assets or property, plant, and equipment		63		68
Purchase of equity or debt instruments of other entities		–1,625		–1,871
Proceeds from sales of equity or debt instruments of other entities		869		1,880
Net cash flows from investing activities		–1,799		–334
Dividends paid		–1,378		–1,316
Proceeds from reissuance of treasury shares		27		64
Proceeds from borrowings		400		1,748
Cash receipts from swap contracts		43		0
Total cash flows from proceeds from borrowings		443		1,748
Repayments of borrowings		–1,800		–3,852
Transactions with non-controlling interests		3		0
Net cash flows from financing activities		–2,704		–3,356
Effect of foreign currency rates on cash and cash equivalents		167		135
Net decrease/increase in cash and cash equivalents		291		83
Cash and cash equivalents at the beginning of the period		3,411		3,328
Cash and cash equivalents at the end of the period		3,702		3,411

Due to rounding, numbers may not add up precisely.

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 11

Segment Reporting (IFRS)

Applications, Technology & Services

€ millions			Q4 2016		Q4 2015		D in %		D in %
	Actual Currency		Constant Currency		Actual Currency		Actual Currency		Constant Currency
Cloud subscriptions and support		384		385		271		42		42
Software licenses		2,155		2,132		2,124		1		0
Software support		2,726		2,706		2,574		6		5
Software licenses and support		4,881		4,837		4,697		4		3
Cloud and software		5,265		5,222		4,969		6		5
Services		866		859		865		0		–1
Total segment revenue		6,130		6,081		5,833		5		4
Cost of cloud subscriptions and support		–195		–192		–134		46		44
Cost of software licenses and support		–559		–554		–572		–2		–3
Cost of cloud and software		–754		–746		–706		7		6
Cost of services		–686		–686		–659		4		4
Total cost of revenue		–1,439		–1,432		–1,364		6		5
Segment gross profit		4,691		4,649		4,469		5		4
Other segment expenses		–1,933		–1,933		–1,799		7		7
Segment profit		2,758		2,716		2,670		3		2
Margins
Cloud subscriptions and support gross margin (in %)		49		50		51		–1pp		–1pp
Gross margin (in %)		77		76		77		–0pp		–0pp
Segment margin (in %)		45		45		46		–1pp		–1pp
SAP Business Network
€ millions			Q4 2016		Q4 2015		D in %		D in %
	Actual Currency		Constant Currency		Actual Currency		Actual Currency		Constant Currency
Cloud subscriptions and support		429		419		355		21		18
Software licenses		0		0		0		0		0
Software support		8		8		6		23		19
Software licenses and support		8		8		6		31		26
Cloud and software		437		426		361		21		18
Services		85		84		75		14		12
Total segment revenue		522		510		436		20		17
Cost of cloud subscriptions and support		–106		–105		–98		8		7
Cost of software licenses and support		–1		–1		0		162		162
Cost of cloud and software		–107		–105		–99		8		7
Cost of services		–69		–69		–54		30		29
Total cost of revenue		–176		–175		–152		16		15
Segment gross profit		346		335		284		22		18
Other segment expenses		–263		–263		–198		33		33
Segment profit		83		72		86		–4		–16
Margins
Cloud subscriptions and support gross margin (in %)		75		75		72		3pp		3pp
Gross margin (in %)		66		66		65		1pp		1pp
Segment margin (in %)		16		14		20		–4pp		–6pp

Due to rounding, numbers may not add up precisely.

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 12

Applications, Technology & Services

€ millions			Q1–Q4 2016		Q1–Q4 2015		D in %		D in %
	Actual Currency		Constant Currency		Actual Currency		Actual Currency		Constant Currency
Cloud subscriptions and support		1,353		1,371		932		45		47
Software licenses		4,784		4,814		4,770		0		1
Software support		10,464		10,544		9,990		5		6
Software licenses and support		15,247		15,358		14,760		3		4
Cloud and software		16,600		16,729		15,692		6		7
Services		3,319		3,358		3,271		1		3
Total segment revenue		19,920		20,087		18,963		5		6
Cost of cloud subscriptions and support		–655		–658		–444		47		48
Cost of software licenses and support		–1,942		–1,956		–1,971		–1		–1
Cost of cloud and software		–2,598		–2,614		–2,416		8		8
Cost of services		–2,669		–2,718		–2,539		5		7
Total cost of revenue		–5,266		–5,331		–4,954		6		8
Segment gross profit		14,653		14,755		14,009		5		5
Other segment expenses		–6,630		–6,724		–6,286		5		7
Segment profit		8,023		8,031		7,723		4		4
Margins
Cloud subscriptions and support gross margin (in %)		52		52		52		–1pp		–0pp
Gross margin (in %)		74		73		74		–0pp		–0pp
Segment margin (in %)		40		40		41		–0pp		–1pp

SAP Business Network

€ millions			Q1–Q4 2016		Q1–Q4 2015		D in %		D in %
	Actual Currency		Constant Currency		Actual Currency		Actual Currency		Constant Currency
Cloud subscriptions and support		1,595		1,589		1,337		19		19
Software licenses		0		0		–1		–61		–58
Software support		28		28		31		–10		–11
Software licenses and support		27		27		30		–9		–10
Cloud and software		1,622		1,617		1,367		19		18
Services		303		304		249		22		22
Total segment revenue		1,925		1,920		1,616		19		19
Cost of cloud subscriptions and support		–384		–385		–336		14		15
Cost of software licenses and support		–1		–1		–1		–4		0
Cost of cloud and software		–385		–386		–337		14		15
Cost of services		–246		–249		–183		34		36
Total cost of revenue		–631		–636		–520		21		22
Segment gross profit		1,295		1,285		1,095		18		17
Other segment expenses		–957		–967		–779		23		24
Segment profit		338		317		317		7		0
Margins
Cloud subscriptions and support gross margin (in %)		76		76		75		1pp		1pp
Gross margin (in %)		67		67		68		–1pp		–1pp
Segment margin (in %)		18		17		20		–2pp		–3pp

Due to rounding, numbers may not add up precisely.

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 13

  Reconciliation from Non-IFRS Numbers to IFRS Numbers

€ millions, unless otherwise stated									Q4 2016						Q4 2015						D in %
	IFRS		Adj.1)		Non-IFRS1)		Currency Impact2)		Non-IFRS Constant Currency2)		IFRS		Adj.1)		Non-IFRS1)		IFRS		Non-IFRS1)		Non-IFRS Constant Currency2)
Revenue Numbers
Cloud subscriptions and support		827		0		827		–11		816		631		1		632		31		31		29
Software licenses		2,177		0		2,177		–24		2,154		2,146		0		2,146		1		1		0
Software support		2,756		0		2,756		–20		2,737		2,600		0		2,600		6		6		5
Software licenses and support		4,933		0		4,934		–43		4,890		4,745		0		4,745		4		4		3
Cloud and software		5,760		0		5,761		–54		5,706		5,377		1		5,378		7		7		6
Services		963		0		963		–8		955		965		0		965		0		0		–1
Total revenue		6,724		0		6,724		–62		6,662		6,342		1		6,343		6		6		5
Operating Expense Numbers
Cost of cloud subscriptions and support		–371		65		–305						–304		70		–234		22		30
Cost of software licenses and support		–637		68		–570						–660		76		–583		–3		–2
Cost of cloud and software		–1,008		133		–875						–964		146		–818		5		7
Cost of services		–806		39		–767						–787		56		–731		2		5
Total cost of revenue		–1,814		172		–1,642						–1,751		203		–1,548		4		6
Gross profit		4,909		173		5,082						4,591		204		4,794		7		6
Research and development		–857		66		–791						–796		69		–727		8		9
Sales and marketing		–1,833		153		–1,680						–1,755		195		–1,560		4		8
General and administration		–277		36		–241						–281		55		–226		–1		7
Restructuring		–7		7		0						–59		59		0		–88		NA
Other operating income/expense, net		1		0		1						1		0		1		>100		>100
Total operating expenses		–4,787		435		–4,353		25		–4,328		–4,642		580		–4,061		3		7		7
Profit Numbers
Operating profit		1,936		435		2,371		–37		2,334		1,700		581		2,282		14		4		2
Other non-operating income/expense, net		–54		0		–54						–28		0		–28		91		91
Finance income		125		0		125						52		0		52		>100		>100
Finance costs		–59		0		–59						–76		0		–76		–23		–23
Financial income, net		67		0		67						–24		0		–24		<-100		<-100
Profit before tax		1,949		435		2,384						1,647		581		2,229		18		7
Income tax expense		–438		–127		–565						–369		–190		–559		19		1
Profit after tax		1,510		308		1,818						1,278		391		1,670		18		9
Attributable to owners of parent		1,513		308		1,821						1,281		391		1,673		18		9
Attributable to non-controlling interests		–2		0		–2						–3		0		–3		–18		–18
Key Ratios
Operating margin (in %)		28.8				35.3				35.0		26.8				36.0		2.0pp		–0.7pp		–0.9pp
Effective tax rate (in %)3)		22.5				23.7						22.4				25.1		0.1pp		–1.4pp
Earnings per share, basic (in €)		1.26				1.52						1.07				1.40		18		9

¹⁾ Adjustments in the revenue line items are for software 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, as well as restructuring expenses.

²⁾ 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.

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 14

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, Adjustments and Full-Year Estimates”.

³⁾ The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in Q4 2016 mainly results from tax effects of acquisition-related charges and share-based payment expenses. The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in Q4 2015 mainly results from tax effects of acquisition-related charges, share-based payment expenses and restructuring.

Due to rounding, numbers may not add up precisely.

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 15

€ millions, unless otherwise stated									Q1–Q4 2016						Q1–Q4 2015						D in %
	IFRS		Adj.1)		Non-IFRS1)		Currency Impact2)		Non-IFRS Constant Currency2)		IFRS		Adj.1)		Non- IFRS1)		IFRS		Non-IFRS1)		Non-IFRS Constant Currency2)
Revenue Numbers
Cloud subscriptions and support		2,993		2		2,995		12		3,007		2,286		10		2,296		31		30		31
Software licenses		4,860		2		4,862		31		4,893		4,835		1		4,836		1		1		1
Software support		10,571		1		10,572		82		10,654		10,093		0		10,094		5		5		6
Software licenses and support		15,431		3		15,434		113		15,546		14,928		2		14,930		3		3		4
Cloud and software		18,424		5		18,428		125		18,553		17,214		11		17,226		7		7		8
Services		3,638		0		3,638		39		3,678		3,579		0		3,579		2		2		3
Total revenue		22,062		5		22,067		164		22,231		20,793		11		20,805		6		6		7
Operating Expense Numbers
Cost of cloud subscriptions and support		–1,301		247		–1,054						–1,022		232		–789		27		34
Cost of software licenses and support		–2,181		238		–1,943						–2,291		283		–2,008		–5		–3
Cost of cloud and software		–3,482		485		–2,997						–3,313		516		–2,797		5		7
Cost of services		–3,088		113		–2,975						–2,932		167		–2,765		5		8
Total cost of revenue		–6,570		598		–5,972						–6,245		683		–5,562		5		7
Gross profit		15,492		603		16,095						14,548		694		15,242		6		6
Research and development		–3,041		201		–2,840						–2,845		202		–2,643		7		7
Sales and marketing		–6,294		558		–5,736						–5,782		462		–5,320		9		8
General and administration		–1,005		119		–885						–1,048		116		–932		–4		–5
Restructuring		–28		28		0						–621		621		0		–96		NA
Other operating income/expense, net		–4		0		–4						1		0		1		<-100		<-100
Total operating expenses		–16,942		1,504		–15,438		–191		–15,629		–16,541		2,084		–14,457		2		7		8
Profit Numbers
Operating profit		5,121		1,508		6,629		–27		6,601		4,252		2,095		6,348		20		4		4
Other non-operating income/expense, net		–234		0		–234						–256		0		–256		–9		–9
Finance income		230		0		230						241		0		241		–4		–4
Finance costs		–268		0		–268						–246		0		–246		9		9
Financial income, net		–38		0		–38						–5		0		–5		>100		>100
Profit before tax		4,849		1,508		6,357						3,991		2,095		6,087		21		4
Income tax expense		–1,230		–477		–1,707						–935		–651		–1,586		32		8
Profit after tax		3,618		1,032		4,650						3,056		1,445		4,501		18		3
Attributable to owners of parent		3,631		1,032		4,663						3,064		1,445		4,509		18		3
Attributable to non-controlling interests		–13		0		–13						–8		0		–8		56		56
Key Ratios
Operating margin (in %)		23.2				30.0				29.7		20.5				30.5		2.8pp		–0.5pp		–0.8pp
Effective tax rate (in %)3)		25.4				26.9						23.4				26.1		1.9pp		0.8pp
Earnings per share, basic (in €)		3.03				3.89						2.56				3.77		18		3

¹⁾ Adjustments in the revenue line items are for software 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, as well as restructuring expenses.

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 16

²⁾ 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, Adjustments and Full-Year Estimates”.

³⁾ The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in 2016 mainly results from tax effects of acquisition-related charges and share-based payment expenses. The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in 2015 mainly results from tax effects of acquisition-related charges, share-based payment expenses and restructuring.

Due to rounding, numbers may not add up precisely.

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 17

Non-IFRS Adjustments – Actuals and Estimates

€ millions	Estimated Amounts for Full Year 2017		Q4 2016		Q1–Q4 2016		Q4 2015		Q1–Q4 2015
Operating profit (IFRS)				1,936		5,121		1,700		4,252
Revenue adjustments		<20		0		5		1		11
Adjustment for acquisition-related charges		620 to 650		177		680		184		738
Adjustment for share-based payment expenses		770 to 1,020		251		795		338		724
Adjustment for restructuring		30 to 50		7		28		59		621
Operating expense adjustments				435		1,504		580		2,084
Operating profit adjustments				435		1,508		581		2,095
Operating profit (non-IFRS)				2,371		6,629		2,282		6,348

Non-IFRS Adjustments by Functional Areas

€ millions	Q4 2016												Q4 2015
	IFRS		Acquisition- Related		SBP1)		Restruc- turing		Non-IFRS		IFRS		Acquisition- Related		SBP1)		Restruc- turing		Non-IFRS
Cost of cloud and software		–1,008		102		31		0		–875		–964		116		30		0	–818
Cost of services		–806		3		36		0		–767		–787		6		50		0	–731
Research and development		–857		3		63		0		–791		–796		2		67		0	–727
Sales and marketing		–1,833		67		86		0		–1,680		–1,755		58		137		0	–1,560
General and administration		–277		1		34		0		–241		–281		2		54		0	–226
Restructuring		–7		0		0		7		0		–59		0		0		59	0
Other operating income/expense, net		1		0		0		0		1		1		0		0		0	1
Total operating expenses		–4,787		177		251		7		–4,353		–4,642		184		338		59	–4,061
1) Share-based Payments
€ millions	Q1–Q4 2016												Q1–Q4 2015
	IFRS		Acquisition- Related		SBP1)		Restruc- turing		Non-IFRS		IFRS		Acquisition- Related		SBP1)		Restruc- turing		Non-IFRS
Cost of cloud and software		–3,482		395		89		0		–2,997		–3,313		441		74		0	–2,797
Cost of services		–3,088		12		101		0		–2,975		–2,932		54		113		0	–2,765
Research and development		–3,041		10		191		0		–2,840		–2,845		36		166		0	–2,643
Sales and marketing		–6,294		257		301		0		–5,736		–5,782		202		260		0	–5,320
General and administration		–1,005		6		113		0		–885		–1,048		4		112		0	–932
Restructuring		–28		0		0		28		0		–621		0		0		621	0
Other operating income/expense, net		–4		0		0		0		–4		1		0		0		0	1
Total operating expenses		–16,942		680		795		28		–15,438		–16,541		738		724		621	–14,457

¹⁾ Share-based payments

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 18

If not presented in a separate line item in our income statement, the restructuring expenses would break down as follows:

€ millions	Q4 2016		Q1–Q4 2016		Q4 2015		Q1–Q4 2015
Cost of cloud and software		1		3		16		80
Cost of services		2		7		39		218
Research and development		3		7		–22		156
Sales and marketing		1		10		26		147
General and administration		0		1		0		20
Restructuring expenses		7		28		59		621

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 19

Revenue by Region (IFRS and Non-IFRS)

€ millions	Q4 2016										Q4 2015						D in %
	IFRS		Adj.1)		Non-IFRS1)		Currency Impact2)		Non-IFRS Constant Currency2)		IFRS		Adj.1)		Non-IFRS1)		IFRS		Non-IFRS1)		Non-IFRS Constant Currency2)
Cloud subscriptions and support revenue by region
EMEA		192		0		192		3		195		142		0		142		35		35		37
Americas		550		0		550		–11		539		434		0		435		27		26		24
APJ		85		0		85		–3		82		55		0		55		54		54		48
Cloud subscriptions and support revenue		827		0		827		–11		816		631		1		632		31		31		29
Cloud and software revenue by region
EMEA		2,694		0		2,694		24		2,717		2,477		1		2,478		9		9		10
Americas		2,154		0		2,154		–48		2,106		2,059		0		2,060		5		5		2
APJ		913		0		913		–30		883		841		0		841		9		9		5
Cloud and software revenue		5,760		0		5,761		–54		5,706		5,377		1		5,378		7		7		6
Total revenue by region
Germany		999		0		999		0		999		896		0		896		11		11		11
Rest of EMEA		2,124		0		2,124		27		2,151		2,008		1		2,008		6		6		7
Total EMEA		3,123		0		3,123		27		3,150		2,904		1		2,904		8		8		8
United States		2,051		0		2,051		–40		2,012		1,971		0		1,971		4		4		2
Rest of Americas		504		0		504		–15		488		494		0		494		2		2		–1
Total Americas		2,555		0		2,555		–55		2,500		2,465		0		2,466		4		4		1
Japan		242		0		242		–26		216		190		0		190		28		28		14
Rest of APJ		804		0		804		–8		796		783		0		783		3		3		2
Total APJ		1,046		0		1,046		–35		1,011		973		0		973		8		8		4
Total revenue		6,724		0		6,724		–62		6,662		6,342		1		6,343		6		6		5

¹⁾ 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.

²⁾ 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.

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 20

€ millions	Q1–Q4 2016										Q1–Q4 2015						D in %
	IFRS		Adj.1)		Non-IFRS1)		Currency Impact2)		Non-IFRS Constant Currency2)		IFRS		Adj.1)		Non-IFRS1)		IFRS		Non-IFRS1)		Non-IFRS Constant Currency2)
Cloud subscriptions and support revenue by region
EMEA		703		0		704		14		717		507		1		508		39		38		41
Americas		2,000		1		2,001		1		2,002		1,579		8		1,587		27		26		26
APJ		290		0		290		–2		288		200		0		201		45		44		43
Cloud subscriptions and support revenue		2,993		2		2,995		12		3,007		2,286		10		2,296		31		30		31
Cloud and software revenue by region
EMEA		8,193		1		8,193		167		8,360		7,622		2		7,623		7		7		10
Americas		7,366		4		7,370		–7		7,364		6,929		9		6,938		6		6		6
APJ		2,865		0		2,865		–36		2,829		2,663		0		2,664		8		8		6
Cloud and software revenue		18,424		5		18,428		125		18,553		17,214		11		17,226		7		7		8
Total revenue by region
Germany		3,034		0		3,034		0		3,033		2,771		0		2,771		9		9		9
Rest of EMEA		6,721		1		6,722		194		6,915		6,409		2		6,411		5		5		8
Total EMEA		9,755		1		9,755		193		9,949		9,181		2		9,183		6		6		8
United States		7,167		4		7,172		–27		7,145		6,750		9		6,759		6		6		6
Rest of Americas		1,763		0		1,763		35		1,799		1,678		0		1,678		5		5		7
Total Americas		8,931		4		8,935		9		8,944		8,428		9		8,437		6		6		6
Japan		825		0		825		–88		737		667		0		668		24		24		10
Rest of APJ		2,552		0		2,552		50		2,601		2,517		0		2,517		1		1		3
Total APJ		3,377		0		3,377		–38		3,339		3,185		0		3,185		6		6		5
Total revenue		22,062		5		22,067		164		22,231		20,793		11		20,805		6		6		7

¹⁾ 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.

²⁾ 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.

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 21

Employees by Region and Functional Areas

	31.12.2016					31.12.2015
Full-time equivalents		EMEA	Americas	APJ	Total		EMEA	Americas	APJ	Total
Cloud and software		6,406	4,184	5,412	16,002		6,095	3,920	4,976	14,991
Services		6,535	4,119	3,967	14,621		6,482	3,812	3,574	13,868
Research and development		10,525	4,860	7,977	23,363		9,676	4,233	7,029	20,938
Sales and marketing		8,542	8,999	4,435	21,977		7,683	7,766	3,974	19,422
General and administration		2,629	1,746	1,018	5,393		2,434	1,653	937	5,024
Infrastructure		1,584	788	454	2,827		1,535	783	425	2,743
SAP Group (December 31)		36,222	24,696	23,265	84,183		33,906	22,166	20,914	76,986
Thereof acquisitions 1)		37	172	0	209		73	0	0	73
SAP Group (average twelve months)		34,932	23,532	22,145	80,609		33,561	21,832	19,788	75,180
1) Acquisitions closed between January 1 and December 31 of the respective year.

SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 22

Additional Information

General Remarks About this Quarterly Statement

Until 2015, SAP’s quarterly earnings reporting consisted of an earnings press release with condensed financial information and an interim report. This quarterly statement replaces both of these documents and includes all relevant information of both of these documents. Starting in 2016, we issue a quarterly statement for each of the four fiscal quarters. Additionally, we issue a half year report and a full year integrated report as before.

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.

2016 Integrated Report and Annual Report

SAP’s 2016 Integrated Report and Annual Report to Shareholders and 2016 Annual Report on Form 20-F are scheduled to be published on February 28, 2017, 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 a financial analyst conference call at 2:00 PM (CET) / 1:00 PM (GMT) / 8:00 AM (Eastern) / 5:00 AM (Pacific). Both conferences will be webcast live on the Company’s website at www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the full-year and quarterly results can be found at www.sap.com/investor.

About SAP

As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 345,000 business and public sector customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

For more information, financial community only:
Stefan Gruber	+49 (6227) 7-44872	investor@sap.com, CET
Follow SAP Investor Relations on Twitter at @sapinvestor.
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
Rajiv Sekhri	+49 (6227) 7-74871	rajiv.sekhri@sap.com, CET
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)

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SAP Quarterly Statement – Preliminary Q4 and FY 2016 Results 23