EX-99.1 2 d359960dex991.htm EXHIBIT 99.1 Exhibit 99.1

Exhibit 99.1

 

SAP Q1 2017 Quarterly Statement    LOGO

SAP Momentum Continues With Soaring Growth in Q1

 

  ◾   New Cloud Bookings Accelerate, Up 49%

 

  ◾   Stellar Software Revenue, Up 13%

 

  ◾   Strong Operating Cash Flow, Up 16%

 

 

LOGO

 

 

Cloud Subscriptions &

     Share of     Total Revenue

 

Support Revenue

     Predictable Revenue        

 

in € millions

 

    

 

in percent

 

    

in € millions

 

IFRS   Non-IFRS     Q1 2017     IFRS   Non-IFRS

 

905

   906     69%     5,285   5,285

 

+34%

  

+34% (+30% cc)

    

+ 0 p.p.

    

+12%

  

+12% (+8% cc)

                              

 

 

“SAP’s outstanding first quarter results are a decisive follow-on to our record setting 2016. Led by S/4HANA, we are seeing mass customer adoption of our solutions globally. Our inspired workforce is firmly committed to staying focused on the success of our customers and shareholders.”

 

 

Bill McDermott, CEO

 

      

 

“We continued our rapid expansion in cloud, accelerating to 49% growth in new cloud bookings. This outstanding achievement further validates our investment decisions to drive future growth. We’re off to a good start to reach our full year targets and we are confident that we will grow our profitability in 2018 and beyond.”

 

Luka Mucic, CFO

 

  

 

SAP Q1 2017 Quarterly Statement

      1  

Walldorf, Germany – April 25, 2017

SAP SE (NYSE: SAP) today announced its financial results for the first quarter 2017 ended March 31, 2017.

 

Business Highlights

Financial Highlights

First Quarter 2017

SAP’s rapid cloud expansion continued in the first quarter. New cloud bookings1 surged 49% (44% at constant currencies) in the first quarter and reached €215 million. IFRS cloud subscriptions and support revenue grew 34% year-over-year to €905 million. Non-IFRS cloud subscriptions and support revenue grew 34% year-over-year (30% at constant currencies) to €906 million. IFRS software revenue grew 13% year-over-year to €691 million. New cloud and software license order entry2 grew by more than 30% year-over-year in the first quarter. IFRS cloud and software revenue was €4.33 billion, an increase of 12% (9% non-IFRS at constant currencies). Total cloud subscriptions & support revenue and software support revenue was 69% of total revenue.

IFRS operating profit was down 17% to €673 million. Non-IFRS operating profit grew 8% to €1.20 billion (2% at constant currencies). IFRS earnings per share decreased 9% to €0.43. Non-IFRS earnings per share increased 15% to €0.73. The IFRS operating profit and EPS were primarily impacted by an increase in share-based compensation expenses, which increased due to the strong development of SAP’s share price and an increase in employee participation. Nearly 65% of SAP employees have participated in SAP’s most recent stock program OWN SAP.

Operating cash flow was €2.87 billion, an increase of 16% year-over-year. Free cash flow increased 12% year-over-year to €2.58 billion. As a result, the company continues to deleverage its balance sheet ending the quarter with net debt of €460 million, an improvement of €2.8 billion year over year.

SAP S/4HANA

With S/4HANA customers can massively simplify their IT landscape, run live and reinvent their business model for the digital economy across both cloud and on-premise deployments. S/4HANA adoption grew to more than 5,800 customers. In the first quarter approximately 400 additional customers signed up of which almost 50% were net new SAP customers. Innogy selected S/4HANA in the first quarter. S/4HANA Cloud brings next generation intelligent ERP to the cloud with speed and ease of deployment. Citrix and iColor chose the S/4HANA Cloud edition in the first quarter.

SAP Cloud Platform

SAP Cloud Platform is a platform as a service (PaaS) designed to help customers become digital enterprises. It offers a broad set of services to build new fast-paced applications and extensions for existing applications as well as to integrate across on-premise and cloud landscapes. SAP Cloud Platform is instrumental in empowering enterprises to create new Internet of Things (IoT), machine learning and Big Data solutions by intelligently connecting processes with people, things and businesses. C&J Energy Services, a leading provider of oil and gas services selected SAP Cloud Platform to help build digital field ticketing applications, that allows rig supervisors to accurately capture job information and synchronize to the back-end SAP S/4HANA Finance system.

 

 

1 New cloud bookings is the total of all orders received in a given period the revenue from which is expected to be classified as cloud subscription and support revenue and that result from purchases by new customers and from incremental purchases by existing customers. Consequently, orders to renew existing contracts are not included in this metric. 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 (annualized contract value ACV).

2 New cloud and software license order entry is the total of new cloud order entry and software license order entry. The new cloud order entry metric is identical to the new cloud bookings metric defined above except that it considers the total contract value (TCV) of the orders where the new cloud bookings metric considers the orders’ annualized contract value (ACV). Software license order entry is the total of all orders received in a given period the revenue from which is expected to be classified as software license revenue. The support services commonly sold with the software licenses are not included in the software license order entry metric.

 

SAP Q1 2017 Quarterly Statement

      2  

Human Capital Management

With SuccessFactors and Fieldglass, SAP delivers total workforce management across both permanent and contingent labor, localized for more than 80 countries and more than 40 languages. Top industry analysts recently gave SAP SuccessFactors the highest rankings in Cloud HCM for Core HR and Talent Management for global organizations with more than 5,000 workers as well as for mid-market European-headquartered enterprises. SuccessFactors Employee Central, which is the core of our HCM offering, had close to 1,700 customers at the end of the first quarter. Companies like Dolce & Gabbana selected SAP’s workforce management solutions in the first quarter.

Customer Engagement and Commerce

SAP’s next generation customer engagement solutions enable businesses to manage their front office across the entire spectrum from marketing to sales to services – seamlessly and in real-time. Businesses get a single view of their customer – be it social, retail or e-commerce. SAP’s CEC solutions serve both B2C and B2B across a wide range of industries, including retail, telco, financial services, manufacturing and the public sector. Top industry analysts recently named SAP Hybris a leader for B2C and B2B Digital Commerce and Multichannel Marketing Campaign Management. SAP’s CEC solutions once again achieved strong double-digit cloud subscriptions and support revenue growth as well as double-digit growth in software revenue.

Business Networks

Each of SAP’s business network solutions provide a rich, open, global platform that connect a large ecosystem of customers, suppliers, partners and developers delivering ever expanding content and innovation. On the Ariba Network, more than 2.7 million companies in over 180 countries collaborate and trade more than $900 billion in goods and services annually. Concur helps more than 47 million end users effortlessly process travel and expenses. With SAP Fieldglass customers manage over 3.3 million contingent workers in approximately 140 countries. Cloud subscriptions and support revenue in the SAP Business Network segment was up 24% in the first quarter.

Regional Revenue Performance in the First Quarter 2017

In the EMEA region, cloud and software revenue increased 10% (IFRS). Cloud subscriptions and support revenue grew 43% (IFRS) with an especially strong quarter in Germany, France and Italy. SAP had triple-digit software revenue growth in South Africa and the Netherlands.

The Company had a strong performance in the Americas region with cloud and software revenue growing by 12% (IFRS). Cloud subscriptions and support revenue was up 27% (IFRS), driven by a strong performance in Canada and Mexico with high double-digit growth. In North America, SAP had double-digit growth in software revenue. In Latin America Brazil was a highlight with strong software revenue growth amidst a difficult macroeconomic environment.

In the APJ region SAP also had an exceptional performance in both cloud subscription and software revenue. Cloud and software revenue was up 21% (IFRS), with cloud subscriptions and support revenue growing by 65% (IFRS). Japan and India were highlights in the quarter with strong results in both cloud subscriptions and software revenue. SAP also had strong double-digit software revenue growth in Greater China3 and South Korea.

 

 

3 SAP’s Greater China region includes China, Hong Kong and Taiwan.

 

SAP Q1 2017 Quarterly Statement

      3  

Financial Results at a Glance

 

 

First Quarter 20171)

 

  
     

 

IFRS

 

 

     

Non-IFRS2)

 

  

 

€ million, unless otherwise stated

    Q1 2017     

 

Q1 2016

     

 

D in %

     

 

Q1 2017

     

 

Q1 2016

     

 

D in %

     

 

D in %
const.
curr.

  

 

New Cloud Bookings3)

      N/A        N/A        N/A        215        145        49        44  

 

Cloud subscriptions and support

      905        677        34        906        678        34        30  

 

Software licenses and support

      3,422        3,172        8        3,422        3,173        8        5  

 

Cloud and software

      4,328        3,850        12        4,328        3,851        12        9  

 

Total revenue

      5,285        4,727        12        5,285        4,728        12        8  

 

Share of predictable revenue (in %)

      69        69        0pp        69        69        0pp           

 

Operating profit

      673        813        –17        1,198        1,104        8        2  

 

Profit after tax

      530        570        –7        887        763        16           

 

Basic earnings per share (€)

      0.43        0.48        –9        0.73        0.64        15           

 

Number of employees (FTE)

      85,751        78,230        10        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 table “Non-IFRS Adjustments by Functional Areas” 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.

Business Outlook 2017

The Company reiterates 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 to €4.0 billion at constant currencies (2016: €2.99 billion). 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% to 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).

  –  

The Company expects full-year 2017 non-IFRS operating profit to be in a range of €6.8 billion to €7.0 billion at constant currencies (2016: €6.63 billion).

While the Company’s full-year 2017 business outlook is at constant currencies, actual currency reported figures are expected to continue to be impacted by exchange rate fluctuations. If exchange rates remain at the March 2017 average level for the rest of the year, the Company expects its non-IFRS cloud and software revenue growth rate as well as its non-IFRS operating profit growth rate to experience a currency benefit in a range of 2 to 5 percentage points for the second quarter 2017. For the full year 2017, we expect to have a benefit in a range of 1 to 4 percentage points.

 

SAP Q1 2017 Quarterly Statement

      4  

Additional Information

Changes to the SAP Executive Board

The Supervisory Board of SAP SE has decided to expand the responsibilities of the Executive Board members Robert Enslin and Bernd Leukert as of May 1, 2017. Robert Enslin will lead the new Cloud Business Group. Furthermore, the Supervisory Board has named Adaire Fox-Martin and Jennifer Morgan to the Executive Board. They will be co-presidents of Global Customer Operations and oversee all SAP regions.

Steve Singh, the Executive Board member responsible for Business Networks and Applications, will leave SAP SE on April 30, 2017.

The aforementioned changes to SAP’s Executive Board will also change SAP’s segment reporting from the second quarter of 2017 onwards. SAP has already started the process of redefining its management reporting under the changed Executive Board structure, which the segment reporting will follow.

General Remarks about this Quarterly Statement and the SAP Integrated Report

Since Q1 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. SAP’s 2016 Integrated Report, and 2016 Annual Report on Form 20-F were published on February 28, 2017, and are available for download at www.sapintegratedreport.com.

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.

Webcast

SAP senior management will host a financial analyst conference call at 2:00 PM (CET) / 1:00 PM (GMT) / 8:00 AM (Eastern) / 5:00 AM (Pacific). The call 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 first quarter 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 350,000 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)

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.

 

SAP Q1 2017 Quarterly Statement

      5  

Financial and Non-Financial Key Facts

 

 € millions, unless otherwise stated   

 

Q1

2016

 

     

 

Q2

2016

 

     

 

Q3

2016

 

     

 

Q4

2016

 

     

 

TY

2016

 

     

 

Q1

2017

 

  

 

 

Revenues

                  

 

Cloud subscriptions and support (IFRS)

 

   

 

 

 

 

677

 

 

 

 

   

 

 

 

 

720

 

 

 

 

   

 

 

 

 

769

 

 

 

 

   

 

 

 

 

827

 

 

 

 

   

 

 

 

 

2,993

 

 

 

 

   

 

 

 

 

905

 

 

 

 

 

Cloud subscriptions and support (non-IFRS)

      678        721        769        827        2,995        906  

% change – yoy

      33        30        28        31        30        34  

% change constant currency – yoy

 

     

 

 33

 

  

 

     

 

 33

 

  

 

     

 

 29

 

  

 

     

 

 29

 

  

 

     

 

 31

 

  

 

     

 

 30

 

  

 

 

Software licenses (IFRS)

 

   

 

 

 

 

609

 

 

 

 

   

 

 

 

 

1,040

 

 

 

 

   

 

 

 

 

1,034

 

 

 

 

   

 

 

 

 

2,177

 

 

 

 

   

 

 

 

 

4,860

 

 

 

 

   

 

 

 

 

691

 

 

 

 

 

Software licenses (non-IFRS)

   

 

 

 

609

 

 

   

 

 

 

1,042

 

 

   

 

 

 

1,034

 

 

   

 

 

 

2,177

 

 

   

 

 

 

4,862

 

 

   

 

 

 

691

 

 

% change – yoy

      –13        6        2        1        1        13  

% change constant currency – yoy

 

     

 

 –10

 

  

 

     

 

 10

 

  

 

     

 

 2

 

  

 

     

 

 0

 

  

 

     

 

 1

 

  

 

     

 

 10

 

  

 

 

Software support (IFRS)

 

   

 

 

 

 

2,564

 

 

 

 

   

 

 

 

 

2,598

 

 

 

 

   

 

 

 

 

2,653

 

 

 

 

   

 

 

 

 

2,756

 

 

 

 

   

 

 

 

 

10,571

 

 

 

 

   

 

 

 

 

2,731

 

 

 

 

 

Software support (non-IFRS)

   

 

 

 

2,564

 

 

   

 

 

 

2,598

 

 

   

 

 

 

2,653

 

 

   

 

 

 

2,756

 

 

   

 

 

 

10,572

 

 

   

 

 

 

2,731

 

 

% change – yoy

      5        3        6        6        5        7  

% change constant currency – yoy

 

     

 

 5

 

  

 

     

 

 6

 

  

 

     

 

 6

 

  

 

     

 

 5

 

  

 

     

 

 6

 

  

 

     

 

 3

 

  

 

 

Software licenses and support (IFRS)

 

   

 

 

 

 

3,172

 

 

 

 

   

 

 

 

 

3,639

 

 

 

 

   

 

 

 

 

3,686

 

 

 

 

   

 

 

 

 

4,933

 

 

 

 

   

 

 

 

 

15,431

 

 

 

 

   

 

 

 

 

3,422

 

 

 

 

 

Software licenses and support (non-IFRS)

   

 

 

 

3,173

 

 

   

 

 

 

3,640

 

 

   

 

 

 

3,687

 

 

   

 

 

 

4,934

 

 

   

 

 

 

15,434

 

 

   

 

 

 

3,422

 

 

% change – yoy

      1        4        5        4        3        8  

% change constant currency – yoy

 

     

 

 2

 

  

 

     

 

 7

 

  

 

     

 

 5

 

  

 

     

 

 3

 

  

 

     

 

 4

 

  

 

     

 

 5

 

  

 

 

Cloud and software (IFRS)

 

   

 

 

 

 

3,850

 

 

 

 

   

 

 

 

 

4,359

 

 

 

 

   

 

 

 

 

4,455

 

 

 

 

   

 

 

 

 

5,760

 

 

 

 

   

 

 

 

 

18,424

 

 

 

 

   

 

 

 

 

4,328

 

 

 

 

Cloud and software (non-IFRS)

      3,851        4,361        4,456        5,761        18,428        4,328  

% change – yoy

      5        7        8        7        7        12  

% change constant currency – yoy

 

     

 

 6

 

  

 

     

 

 11

 

  

 

     

 

 9

 

  

 

     

 

 6

 

  

 

     

 

 8

 

  

 

     

 

 9

 

  

 

 

Total revenue (IFRS)

 

   

 

 

 

 

4,727

 

 

 

 

   

 

 

 

 

5,237

 

 

 

 

   

 

 

 

 

5,375

 

 

 

 

   

 

 

 

 

6,724

 

 

 

 

   

 

 

 

 

22,062

 

 

 

 

   

 

 

 

 

5,285

 

 

 

 

 

Total revenue (non-IFRS)

   

 

 

 

4,728

 

 

   

 

 

 

5,239

 

 

   

 

 

 

5,375

 

 

   

 

 

 

6,724

 

 

   

 

 

 

22,067

 

 

   

 

 

 

5,285

 

 

% change – yoy

      5        5        8        6        6        12  

% change constant currency – yoy

 

     

 

 6

 

  

 

     

 

 9

 

  

 

     

 

 8

 

  

 

     

 

 5

 

  

 

     

 

 7

 

  

 

     

 

 8

 

  

 

 

Share of predictable revenue (IFRS, in %)

 

   

 

 

 

 

69

 

 

 

 

   

 

 

 

 

63

 

 

 

 

   

 

 

 

 

64

 

 

 

 

   

 

 

 

 

53

 

 

 

 

   

 

 

 

 

61

 

 

 

 

   

 

 

 

 

69

 

 

 

 

 

Share of predictable revenue (non-IFRS, in %)

 

   

 

 

 

 

69

 

 

 

 

   

 

 

 

 

63

 

 

 

 

   

 

 

 

 

64

 

 

 

 

     

 

 53

 

  

 

   

 

 

 

 

61

 

 

 

 

   

 

 

 

 

69

 

 

 

 

             

    

                                                      

 

Profits

 

                  

 

Operating profit (IFRS)

 

   

 

 

 

 

813

 

 

 

 

   

 

 

 

 

1,269

 

 

 

 

   

 

 

 

 

1,103

 

 

 

 

   

 

 

 

 

1,950

 

 

 

 

   

 

 

 

 

5,135

 

 

 

 

   

 

 

 

 

673

 

 

 

 

 

Operating profit (non-IFRS)

   

 

 

 

            1,104

 

 

   

 

 

 

            1,516

 

 

   

 

 

 

            1,638

 

 

   

 

 

 

            2,375

 

 

   

 

 

 

            6,633

 

 

   

 

 

 

            1,198

 

 

% change

      5        9        1        4        4        8  

% change constant currency

 

     

 

 4

 

  

 

     

 

 11

 

  

 

     

 

 1

 

  

 

     

 

 2

 

  

 

     

 

 4

 

  

 

     

 

 2

 

  

 

 

Profit after tax (IFRS)

 

   

 

 

 

 

570

 

 

 

 

   

 

 

 

 

813

 

 

 

 

   

 

 

 

 

725

 

 

 

 

   

 

 

 

 

1,526

 

 

 

 

   

 

 

 

 

3,634

 

 

 

 

   

 

 

 

 

530

 

 

 

 

 

Profit after tax (non-IFRS)

   

 

 

 

763

 

 

   

 

 

 

979

 

 

   

 

 

 

1,089

 

 

   

 

 

 

1,826

 

 

   

 

 

 

4,658

 

 

   

 

 

 

887

 

 

% change

 

     

 

 9

 

  

 

     

 

 2

 

  

 

     

 

 –7

 

  

 

     

 

 9

 

  

 

     

 

 3

 

  

 

     

 

 16

 

  

 

             

    

                                                      

 

Margins

 

                  

 

Cloud subscriptions and support gross margin (IFRS, in %)

 

   

 

 

 

 

57.0

 

 

 

 

   

 

 

 

 

56.6

 

 

 

 

   

 

 

 

 

56.3

 

 

 

 

   

 

 

 

 

54.8

 

 

 

 

   

 

 

 

 

56.1

 

 

 

 

   

 

 

 

 

57.7

 

 

 

 

 

Cloud subscriptions and support gross margin (non-IFRS, in %)

 

   

 

 

 

 

65.9

 

 

 

 

   

 

 

 

 

64.8

 

 

 

 

   

 

 

 

 

64.5

 

 

 

 

   

 

 

 

 

62.7

 

 

 

 

   

 

 

 

 

64.4

 

 

 

 

   

 

 

 

 

64.6

 

 

 

 

 

Software license and support gross margin (IFRS, in %)

 

   

 

 

 

 

84.2

 

 

 

 

   

 

 

 

 

86.1

 

 

 

 

   

 

 

 

 

85.4

 

 

 

 

   

 

 

 

 

87.1

 

 

 

 

   

 

 

 

 

85.9

 

 

 

 

   

 

 

 

 

83.3

 

 

 

 

 

Software license and support gross margin (non-IFRS, in %)

 

   

 

 

 

 

85.9

 

 

 

 

   

 

 

 

 

87.4

 

 

 

 

   

 

 

 

 

87.4

 

 

 

 

   

 

 

 

 

88.4

 

 

 

 

   

 

 

 

 

87.4

 

 

 

 

   

 

 

 

 

85.1

 

 

 

 

 

Cloud and software gross margin (IFRS, in %)

 

   

 

 

 

 

79.4

 

 

 

 

   

 

 

 

 

81.2

 

 

 

 

   

 

 

 

 

80.4

 

 

 

 

   

 

 

 

 

82.4

 

 

 

 

   

 

 

 

 

81.0

 

 

 

 

   

 

 

 

 

77.9

 

 

 

 

 

Cloud and software gross margin (non-IFRS, in %)

 

   

 

 

 

 

82.3

 

 

 

 

   

 

 

 

 

83.6

 

 

 

 

   

 

 

 

 

83.4

 

 

 

 

   

 

 

 

 

84.7

 

 

 

 

   

 

 

 

 

83.7

 

 

 

 

   

 

 

 

 

80.8

 

 

 

 

 

Gross margin (IFRS, in %)

 

   

 

 

 

 

66.9

 

 

 

 

   

 

 

 

 

70.4

 

 

 

 

   

 

 

 

 

69.3

 

 

 

 

   

 

 

 

 

73.0

 

 

 

 

   

 

 

 

 

70.2

 

 

 

 

   

 

 

 

 

66.7

 

 

 

 

 

Gross margin (non-IFRS, in %)

 

   

 

 

 

 

69.6

 

 

 

 

   

 

 

 

 

72.6

 

 

 

 

   

 

 

 

 

72.7

 

 

 

 

   

 

 

 

 

75.5

 

 

 

 

   

 

 

 

 

72.9

 

 

 

 

   

 

 

 

 

69.9

 

 

 

 

 

Operating margin (IFRS, in %)

 

   

 

 

 

 

17.2

 

 

 

 

   

 

 

 

 

24.2

 

 

 

 

   

 

 

 

 

20.5

 

 

 

 

   

 

 

 

 

29.0

 

 

 

 

   

 

 

 

 

23.3

 

 

 

 

   

 

 

 

 

12.7

 

 

 

 

 

Operating margin (non-IFRS, in %)

 

   

 

 

 

 

23.4

 

 

 

 

   

 

 

 

 

28.9

 

 

 

 

   

 

 

 

 

30.5

 

 

 

 

   

 

 

 

 

35.3

 

 

 

 

   

 

 

 

 

30.1

 

 

 

 

   

 

 

 

 

22.7

 

 

 

 

 

AT&S Segment1) – Cloud subscriptions and support gross margin (in %)

 

   

 

 

 

 

54

 

 

 

 

   

 

 

 

 

51

 

 

 

 

   

 

 

 

 

51

 

 

 

 

   

 

 

 

 

48

 

 

 

 

   

 

 

 

 

51

 

 

 

 

   

 

 

 

 

52

 

 

 

 

 

SAP Q1 2017 Quarterly Statement

      6  

€ millions, unless otherwise stated   

Q1

2016

     

Q2

2016

     

Q3

2016

     

Q4

2016

     

TY

2016

     

Q1

2017

  

AT&S Segment1) – Gross margin (in %)

      70        73        74        76        73        70  
             

AT&S Segment1) – Segment margin (in %)

      34        39        41        45        40        32  
             

SAP BN Segment2) – Cloud subscriptions and support gross margin (in %)

      75        76        77        75        76        77  
             

SAP BN Segment2) – Gross margin (in %)

      67        68        68        66        67        67  
             

SAP BN Segment2) – Segment margin (in %)

      17        18        20        16        18        16  
             
                 
             

Key Profit Ratios

                  
             

Effective tax rate (IFRS, in %)

      23.3        28.9        28.4        22.3        25.3        20.6  
             

Effective tax rate (non-IFRS, in %)

      26.2        29.6        29.7        23.5        26.8        25.7  
             

Earnings per share, basic (IFRS, in €)

      0.48        0.68        0.61        1.27        3.04        0.43  
             

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

      0.64        0.82        0.91        1.53        3.90        0.73  
             
                 
             

Order Entry

                  
             

New Cloud Bookings

      145        255        265        483        1,147        215  
             

Deferred cloud subscriptions and support revenue (IFRS, quarter end)

      953        1,003        1,081        1,271        1,271        1,376  
             

Orders – Number of on-premise software deals (in transactions)

      12,884        14,468        13,048        16,891        57,291        13,115  
             

Share of orders greater than € 5 million based on total software order entry volume (in %)

      17        29        26        34        29        27  
             

Share of orders smaller than € 1 million based on total software order entry volume (in %)

      48        38        40        35        38        46  
             
                 
             

Liquidity and Cash Flow

                  
             

Net cash flows from operating activities

      2,482        439        707        1,000        4,628        2,872  
             

Free cash flow

      2,313        202        446        665        3,627        2,581  
             

% of total revenue (IFRS)

      49        4        8        10        16        49  
             

% of profit after tax (IFRS)

      406        25        61        44        100        487  
             

Group liquidity, gross

      5,853        4,347        4,388        4,673        4,673        7,345  
             

Group debt

      –9,080        –8,593        –8,134        –7,825        –7,825        –7,805  
             

Group liquidity, net

      –3,227        –4,245        –3,746        –3,153        –3,153        –460  
             

Days’ sales outstanding (DSO, in days)3)

      72        73        74        74        74        72  
             
                 
             

Financial Position

                  
             

Cash and cash equivalents

      5,743        4,206        4,112        3,702        3,702        5,937  
             

Goodwill

      21,922        22,354        22,276        23,312        23,312        23,092  
             

Total assets

      42,884        41,788        41,601        44,277        44,277        47,724  
             

Equity ratio (total equity in % of total assets)

      53        55        57        59        59        56  
             
                 
             

Non-Financials

                  
             

Number of employees (quarter end)4)

      78,230        79,962        82,426        84,183        84,183        85,751  
             

Employee retention (in %, rolling 12 months)

      92.0        92.6        93.4        93.7        93.7        94.1  
             

Women in management (in %, quarter end)

      23.6        24.1        24.3        24.5        24.5        24.8  
             

Greenhouse gas emissions (in kilotons)

      120        95        85        80        380        100  

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 Q1 2017 Quarterly Statement

      7  

Consolidated Income Statements of SAP Group (IFRS)

 

 

€ millions, unless otherwise stated

 

   

Q1 2017

 

     

Q1 2016

 

     

D in %

 

  

Cloud subscriptions and support

 

     

 

 905

 

  

 

     

 

 677

 

  

 

     

 

 34

 

  

 

Software licenses

 

     

 

 691

 

  

 

     

 

 609

 

  

 

     

 

 13

 

  

 

Software support

 

     

 

 2,731

 

  

 

     

 

 2,564

 

  

 

     

 

 7

 

  

 

Software licenses and support

 

     

 

 3,422

 

  

 

     

 

 3,172

 

  

 

     

 

 8

 

  

 

Cloud and software

 

     

 

 4,328

 

  

 

     

 

 3,850

 

  

 

     

 

 12

 

  

 

 

Services

     

 

 957

 

  

 

     

 

 877

 

  

 

     

 

 9

 

  

 

Total revenue

 

     

 

 5,285

 

  

 

     

 

 4,727

 

  

 

     

 

 12

 

  

 

                            

Cost of cloud subscriptions and support

 

     

 

 –383

 

  

 

     

 

 –291

 

  

 

     

 

 32

 

  

 

Cost of software licenses and support

 

     

 

 –571

 

  

 

     

 

 –500

 

  

 

     

 

 14

 

  

 

Cost of cloud and software

 

     

 

 –954

 

  

 

     

 

 –791

 

  

 

     

 

 21

 

  

 

Cost of services

 

     

 

 –806

 

  

 

     

 

 –773

 

  

 

     

 

 4

 

  

 

Total cost of revenue

 

     

 

 –1,760

 

  

 

     

 

 –1,564

 

  

 

     

 

 13

 

  

 

Gross profit

 

     

 

 3,524

 

  

 

     

 

 3,163

 

  

 

     

 

 11

 

  

 

Research and development

      –852        –709        20  

Sales and marketing

 

     

 

     –1,708

 

  

 

     

 

     –1,394

 

  

 

     

 

 22

 

  

 

General and administration

 

     

 

 –291

 

  

 

     

 

 –230

 

  

 

     

 

 26

 

  

 

Restructuring

 

     

 

 –4

 

  

 

     

 

 –11

 

  

 

     

 

 –61

 

  

 

Other operating income/expense, net

 

     

 

 4

 

  

 

     

 

 –6

 

  

 

     

 

 <-100

 

  

 

Total operating expenses

 

      –4,612        –3,914        18  

Operating profit

 

     

 

 673

 

  

 

     

 

 813

 

  

 

     

 

 –17

 

  

 

                            

Other non-operating income/expense, net

 

     

 

 –18

 

  

 

     

 

 –35

 

  

 

     

 

 –49

 

  

 

Finance income

 

     

 

 107

 

  

 

     

 

 35

 

  

 

     

 

 >100

 

  

 

Finance costs

 

     

 

 –94

 

  

 

     

 

 –70

 

  

 

     

 

 34

 

  

 

Financial income, net

 

     

 

 13

 

  

 

     

 

 –35

 

  

 

     

 

 <-100

 

  

 

Profit before tax

 

     

 

 668

 

  

 

     

 

 743

 

  

 

     

 

 –10

 

  

 

                            

Income tax expense

 

     

 

 –138

 

  

 

     

 

 –173

 

  

 

     

 

 –20

 

  

 

Profit after tax

 

     

 

 530

 

  

 

     

 

 570

 

  

 

     

 

 –7

 

  

 

Attributable to owners of parent

 

     

 

 521

 

  

 

     

 

 572

 

  

 

     

 

 –9

 

  

 

Attributable to non-controlling interests

 

     

 

 9

 

  

 

     

 

 –2

 

  

 

     

 

 <-100

 

  

 

                            

Earnings per share, basic (in €)1)

 

     

 

 0.43

 

  

 

     

 

 0.48

 

  

 

     

 

 –9

 

  

 

Earnings per share, diluted (in €)1)

 

     

 

 0.43

 

  

 

     

 

 0.48

 

  

 

     

 

 –9

 

  

 

1) For the three months ended March 31, 2017 and 2016, 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 Q1 2017 Quarterly Statement

      8  

Consolidated Statements of Financial Position of SAP Group (IFRS)

 

 

as at March 31, 2017 and December 31, 2016

  

 

  € millions

 

    2017      2016  

 

Cash and cash equivalents

      5,937        3,702  

 

Other financial assets

      1,545        1,124  

 

Trade and other receivables

      6,596        5,924  

 

Other non-financial assets

      775        581  

 

Tax assets

      294        233  

 

Total current assets

      15,147        11,564  

 

Goodwill

      23,092        23,312  

 

Intangible assets

      3,638        3,786  

 

Property, plant, and equipment

      2,620        2,580  

 

Other financial assets

      1,447        1,358  

 

Trade and other receivables

      128        126  

 

Other non-financial assets

      547        532  

 

Tax assets

      445        450  

 

Deferred tax assets

      660        570  

 

Total non-current assets

      32,578        32,713  

 

Total assets

      47,724        44,277  

 

    

                

 

  € millions

 

    2017      2016  

 

Trade and other payables

      1,183        1,281  

 

Tax liabilities

      328        316  

 

Financial liabilities

      1,775        1,813  

 

Other non-financial liabilities

      2,989        3,699  

 

Provisions

      158        183  

 

Deferred income

      6,215        2,383  

 

Total current liabilities

      12,649        9,674  

 

Trade and other payables

      124        127  

 

Tax liabilities

      377        365  

 

Financial liabilities

      6,454        6,481  

 

Other non-financial liabilities

      614        461  

 

Provisions

      321        217  

 

Deferred tax liabilities

      349        411  

 

Deferred income

      70        143  

 

Total non-current liabilities

      8,308        8,205  

 

Total liabilities

      20,957        17,880  

 

Issued capital

      1,229        1,229  

 

Share premium

      593        599  

 

Retained earnings

      22,826        22,302  

 

Other components of equity

      3,188        3,346  

 

Treasury shares

      –1,099        –1,099  

 

Equity attributable to owners of parent

      26,736        26,376  

 

    

                  

 

Non-controlling interests

      31        21  

 

Total equity

      26,768        26,397  

 

Total equity and liabilities

            47,724              44,277  

Due to rounding, numbers may not add up precisely.

 

SAP Q1 2017 Quarterly Statement

      9  

Consolidated Statements of Cash Flows of SAP Group (IFRS)

 

 

  € millions

 

 

   

 

Q1 2017

 

     

 

Q1 2016

 

  

Profit after tax

 

      530        570  

Adjustments to reconcile profit after taxes to net cash flows from operating activities:

 

                  

Depreciation and amortization

 

      320        309  

Income tax expense

 

      138        173  

Financial income, net

 

      –13        35  

Decrease/increase in sales and bad debt allowances on trade receivables

 

      15        35  

Other adjustments for non-cash items

 

      –13        8  

Decrease/increase in trade and other receivables

 

      –633        –443  

Decrease/increase in other assets

 

      –243        –191  

Decrease/increase in trade payables, provisions, and other liabilities

 

      –596        –1,097  

Decrease/increase in deferred income

 

      3,730        3,393  

Interest paid

 

      –58        –54  

Interest received

 

      17        17  

Income taxes paid, net of refunds

 

      –323        –273  

Net cash flows from operating activities

 

      2,872        2,482  

Business combinations, net of cash and cash equivalents acquired

 

      –22        –3  

Purchase of intangible assets or property, plant, and equipment

 

      –291        –168  

Proceeds from sales of intangible assets or property, plant, and equipment

 

      27        17  

Purchase of equity or debt instruments of other entities

 

      –981        –164  

Proceeds from sales of equity or debt instruments of other entities

 

      624        186  

Net cash flows from investing activities

 

      –644        –132  

Proceeds from reissuance of treasury shares

 

      0        7  

Proceeds from borrowings

 

      4        0  

Repayments of borrowings

 

      –3        –2  

Transactions with non-controlling interests

 

      0        3  

Net cash flows from financing activities

 

      1        7  

Effect of foreign currency rates on cash and cash equivalents

 

      5        –25  

Net decrease/increase in cash and cash equivalents

 

      2,234        2,332  

Cash and cash equivalents at the beginning of the period

 

      3,702        3,411  

Cash and cash equivalents at the end of the period

      5,937        5,743  

Due to rounding, numbers may not add up precisely.

 

SAP Q1 2017 Quarterly Statement

      10  

Segment Reporting

Applications, Technology & Services

 

  € millions, unless otherwise stated

 

           

 

Q1 2017

 

     

 

Q1 2016

 

     

 

D in %

 

     

 

D in %

 

  
     

 

Actual

Currency

     

 

Constant

Currency

     

 

Actual

Currency

     

 

Actual

Currency

     

 

Constant

Currency

  

 

Cloud subscriptions and support – SaaS/PaaS1)

      352        342        254        39        35  

 

Cloud subscriptions and support – IaaS2)

      76        75        41        86        82  

 

Cloud subscriptions and support

      428        417        295        45        41  

 

Software licenses

      675        652        591        14        10  

 

Software support

      2,705        2,620        2,540        6        3  

 

Software licenses and support

      3,380        3,272        3,131        8        5  

 

Cloud and software

      3,808        3,689        3,426        11        8  

 

Services

      855        832        802        7        4  

 

Total segment revenue

      4,663        4,522        4,229        10        7  

 

Cost of cloud subscriptions and support – SaaS/PaaS1)

      –139        –134        –86        61        55  

 

Cost of cloud subscriptions and support – IaaS2)

      –68        –66        –50        36        32  

 

Cost of cloud subscriptions and support

      –207        –200        –136        52        47  

 

Cost of software licenses and support

      –507        –499        –462        10        8  

 

Cost of cloud and software

      –714        –699        –598        19        17  

 

Cost of services

      –686        –671        –677        1        –1  

 

Total cost of revenue

      –1,400        –1,370        –1,275        10        7  

 

Segment gross profit

      3,263        3,152        2,954        10        7  

 

Other segment expenses

      –1,761        –1,721        –1,513        16        14  

 

Segment profit

      1,502        1,431        1,441        4        –1  

 

Margins

                                             

 

Cloud subscriptions and support gross margin – SaaS/PaaS1) (in %)

      60        61        66        –6pp        –5pp  

 

Cloud subscriptions and support gross margin – IaaS2) (in %)

      11        11        –22        33pp        33pp  

 

Cloud subscriptions and support gross margin (in %)

      52        52        54        –2pp        –2pp  

 

Gross margin (in %)

      70        70        70        0pp        –0pp  

 

Segment margin (in %)

      32        32        34        –2pp        –2pp  

1) Software as a Service/Platform as a Service

2) Infrastructure as a Service

Due to rounding, numbers may not add up precisely.

 

SAP Q1 2017 Quarterly Statement

      11  

SAP Business Network

 

 

  € millions, unless otherwise stated

 

   

Q1 2017

 

     

Q1 2016

 

     

D in %

 

     

D in %

 

  
  

 

Actual
Currency

     

 

Constant
Currency

     

 

Actual
Currency

     

 

Actual

Currency

     

 

Constant

Currency

  

 

Cloud subscriptions and support – SaaS/PaaS1)

      464        448        373        24        20  

 

Cloud subscriptions and support – IaaS2)

      0        0        0        0        0  

 

Cloud subscriptions and support

      464        448        373        24        20  

 

Software licenses

      0        0        0        0        0  

 

Software support

      6        6        7        –19        –12  

 

Software licenses and support

      6        6        7        –18        –12  

 

Cloud and software

      469        454        380        24        20  

 

Services

      98        95        71        38        33  

 

Total segment revenue

      567        549        451        26        22  

 

Cost of cloud subscriptions and support – SaaS/PaaS1)

      –107        –104        –92        17        13  

 

Cost of cloud subscriptions and support – IaaS2)

      0        0        0        0        0  

 

Cost of cloud subscriptions and support

      –107        –104        –92        17        13  

 

Cost of software licenses and support

      –1        –1        0        >100        >100  

 

Cost of cloud and software

      –108        –105        –92        17        14  

 

Cost of services

      –77        –74        –56        37        33  

 

Total cost of revenue

      –184        –179        –148        25        21  

 

Segment gross profit

      383        370        303        26        22  

 

Other segment expenses

      –293        –285        –228        29        25  

 

Segment profit

      90        85        75        20        13  

 

Margins

                                             

 

Cloud subscriptions and support gross margin – SaaS/PaaS1) (in %)

      77        77        75        2pp        1pp  

 

Cloud subscriptions and support gross margin – IaaS2) (in %)

      0        0        0        0pp        0pp  

 

Cloud subscriptions and support gross margin (in %)

      77        77        75        2pp        1pp  

 

Gross margin (in %)

      67        67        67        0pp        0pp  

 

Segment margin (in %)

      16        15        17        –1pp        –1pp  

1) Software as a Service/Platform as a Service    

2) Infrastructure as a Service    

Due to rounding, numbers may not add up precisely.

 

SAP Q1 2017 Quarterly Statement

      12  

Reconciliation of Cloud Delivery Models

 

  € millions, unless otherwise stated           

 

Q1 2017

 

     

 

Q1 2016

 

     

 

D in %

 

     

 

D in %

 

  
     

 

Actual
Currency

     

 

Constant
Currency

     

 

Actual
Currency

     

 

Actual

Currency

     

 

Constant

Currency

  

 

SAP Business Network – cloud subscriptions and
support revenue

 

           464        448        373        24        20  

Public cloud revenue (SaaS/PaaS1))

   

Applications, Technology & Services

      352        342        254        39        35  
  

Other

      13        13        10        37        35  
   Total      365        355        264        38        35  

Private cloud revenue (IaaS2))

    Applications, Technology & Services      76        75        41        86        82  

Cloud subscriptions and support revenue

           906        878        678        34        30  

SAP Business Network – cloud subscriptions and
support gross margin (in %)

           77        77        75        2pp        1pp  

Public cloud gross margin (SaaS/PaaS1)) (in %)

   

Applications, Technology & Services

      60        61        66        –6pp        –5pp  
  

Other

      54        48        70        –16pp        –22pp  
   Total      60        60        66        –6pp        –6pp  

Private cloud gross margin (IaaS2)) (in %)

    Applications, Technology & Services      11        11        –22        33pp        33pp  

Cloud subscriptions and support gross margin (in %)

           65        65        66        –1pp        –1pp  

1) Software as a Service/Platform as a Service    

2) Infrastructure as a Service    

Due to rounding, numbers may not add up precisely.

 

SAP Q1 2017 Quarterly Statement

      13  

Reconciliation from Non-IFRS Numbers to IFRS Numbers

 

  € millions, unless otherwise stated                                   

 

Q1 2017

                      Q1
2016		                      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

      905        0        906        –27        878        677        1        678        34        34        30  

Software licenses

      691        0        691        –23        668        609        0        609        13        13        10  

Software support

      2,731        0        2,731        –83        2,648        2,564        0        2,564        7        7        3  

Software licenses and support

      3,422        0        3,422        –106        3,316        3,172        0        3,173        8        8        5  

Cloud and software

      4,328        0        4,328        –133        4,194        3,850        1        3,851        12        12        9  

Services

      957        0        957        –26        931        877        0        877        9        9        6  

Total revenue

      5,285        0        5,285        –159        5,126        4,727        1        4,728        12        12        8  
                                                                                                    

Operating Expense Numbers

                                                                                                   

Cost of cloud subscriptions and support

      –383        63        –320                          –291        60        –231        32        39           

Cost of software licenses and support

      –571        62        –510                          –500        52        –449        14        14           

Cost of cloud and software

      –954        124        –830                          –791        111        –680        21        22           

Cost of services

      –806        47        –759                          –773        17        –756        4        0           

Total cost of revenue

      –1,760        171        –1,589                          –1,564        129        –1,435        13        11           

Gross profit

      3,524        172        3,696                          3,163        130        3,293        11        12           

Research and development

      –852        88        –764                          –709        27        –681        20        12           

Sales and marketing

      –1,708        211        –1,497                          –1,394        109        –1,286        22        16           

General and administration

      –291        50        –242                          –230        15        –216        26        12           

Restructuring

      –4        4        0                          –11        11        0        –61        NA           

Other operating income/expense, net

      4        0        4                          –6        0        –6        <-100        <-100           

Total operating expenses

      –4,612        524        –4,087        87        –4,000        –3,914        290        –3,624        18        13        10  
                                                                                                    

Profit Numbers

                                                                                                   

Operating profit

      673        525        1,198        –72        1,126        813        291        1,104        –17        8        2  

Other non-operating income/expense, net

      –18        0        –18                          –35        0        –35        –49        –49           

Finance income

      107        0        107                          35        0        35        >100        >100           

Finance costs

      –94        0        –94                          –70        0        –70        34        34           

Financial income, net

      13        0        13                          –35        0        –35        <-100        <-100           

Profit before tax

      668        525        1,193                          743        291        1,034        –10        15           

Income tax expense

      –138        –168        –306                          –173        –98        –271        –20        13           

Profit after tax

      530        356        887                          570        193        763        –7        16           

Attributable to owners of parent

      521        356        877                          572        193        765        –9        15           

Attributable to non-controlling interests

      9        0        9                          –2        0        –2        <-100        <-100           
                                                                                                    

Key Ratios

                                                                                                   

Operating margin (in %)

      12.7                 22.7                 22.0        17.2                 23.4        –4.5pp        –0.7pp        –1.4pp  

Effective tax rate (in %)3)

      20.6                 25.7                          23.3                 26.2        –2.7pp        –0.5pp           

Earnings per share, basic (in €)

      0.43                 0.73                          0.48                 0.64        –9        15           

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 Q1 2017 Quarterly Statement

      14  

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 Q1 2017 and Q1 2016 mainly results from tax effects of acquisition-related charges and share-based payment expenses.

Due to rounding, numbers may not add up precisely.

Non-IFRS Adjustments – Actuals and Estimates

 

 

  € millions

   

 

Estimated Amounts for

Full Year 2017

     

 

Q1 2017

     

 

Q1 2016

  

 

Operating profit (IFRS)

         673        813  

 

Revenue adjustments

      <20        0        1  

 

Adjustment for acquisition-related charges

      620 to 650        157        170  

 

Adjustment for share-based payment expenses

      900 to 1,150        363        109  

 

Adjustment for restructuring1)

      250 to 300        4        11  

 

Operating expense adjustments

               524        290  

 

Operating profit adjustments

         525        291  

 

Operating profit (non-IFRS)

               1,198        1,104  

1) Reflects our expectations for restructuring activities in our services and support business

Non-IFRS Adjustments by Functional Areas

 

  € millions   

 

Q1 2017

             

 

Q1 2016  

  
  

 

IFRS

             

 

Acquisition-
Related

             

 

SBP1)

     

 

Restruc-

turing

     

 

Non-IFRS

             

 

IFRS

             

 

Acquisition-
Related

             

 

SBP1)

             

 

Restruc-
turing

     

 

Non-IFRS  

  

 

Cost of cloud and software

      –954           83           41        0        –830           –791           98           13           0        –680    

 

Cost of services

      –806                 2                 45        0        –759                 –773                 3                 15                 0        –756    

 

Research and development

      –852           3           86        0        –764           –709           2           25           0        –681    

 

Sales and marketing

      –1,708                 68                 143        0        –1,497                 –1,394                 64                 45                 0        –1,286    

 

General and administration

      –291           1           49        0        –242           –230           3           12           0        –216    

 

Restructuring

      –4                 0                 0        4        0                 –11                 0                 0                 11        0    

Other operating income/expense, net

 

     

 

 4

 

  

 

        

 

 0

 

  

 

        

 

 0

 

  

 

     

 

 0

 

  

 

     

 

 4

 

  

 

        

 

 –6

 

  

 

        

 

 0

 

  

 

        

 

 0

 

  

 

        

 

 0

 

  

 

     

 

 –6  

 

  

 

Total operating expenses

      –4,612                 157                 363        4        –4,087                 –3,914                 170                 109                 11        –3,624    

1) Share-based Payments

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

 

 

  € millions

   

 

Q1 2017

 

     

 

Q1 2016

 

  

 

 

Cost of cloud and software

      1        1  

 

Cost of services

      1        3  

 

Research and development

      1        3  

 

Sales and marketing

      1        3  

 

General and administration

      0        1  

 

Restructuring expenses

 

      4        11  

 

SAP Q1 2017 Quarterly Statement

      15  

Revenue by Region (IFRS and Non-IFRS)

 

 

  € millions

        

Q1 2017

 

 

             

 

Q1 2016

 

 

           

 

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

        230           0        230           –1           229             161           0        161           43        43           42  

 

Americas

          582             0        582             –22             561               460             0        460             27        27             22  

 

APJ

        94           0        94           –5           88             57           0        57           65        65           56  

 

Cloud subscriptions and support revenue

       

 

 

 

905

 

 

        

 

 

 

0

 

 

   

 

 

 

906

 

 

        

 

 

 

–27

 

 

        

 

 

 

878

 

 

          

 

 

 

677

 

 

        

 

 

 

1

 

 

   

 

 

 

678

 

 

        

 

 

 

34

 

 

   

 

 

 

34

 

 

        

 

 

 

30

 

 

                                                         

 

Cloud and software revenue by region

 

                                                            

 

EMEA

        1,848           0        1,848           –34           1,814             1,686           0        1,686           10        10           8  

 

Americas

          1,775             0        1,776             –68             1,707               1,583             1        1,584             12        12             8  

 

APJ

        704           0        704           –31           673             581           0        581           21        21           16  

 

Cloud and software revenue

         

 

 4,328

 

  

 

          

 

 0

 

  

 

     

 

 4,328

 

  

 

          

 

 –133

 

  

 

          

 

 4,194

 

  

 

            

 

 3,850

 

  

 

          

 

 1

 

  

 

     

 

 3,851

 

  

 

          

 

 12

 

  

 

     

 

 12

 

  

 

          

 

 9

 

  

 

                                                         

 

Total revenue by region

 

                                                            

 

Germany

        674           0        674           0           674             605           0        605           11        11           11  

 

Rest of EMEA

          1,572             0        1,572             –38             1,534               1,442             0        1,442             9        9             6  

 

Total EMEA

        2,246           0        2,246           –38           2,208             2,047           0        2,047           10        10           8  

 

United States

          1,773             0        1,773             –60             1,714               1,606             1        1,606             10        10             7  

 

Rest of Americas

        431           0        431           –26           406             371           0        371           16        16           9  

 

Total Americas

          2,205             0        2,205             –85             2,119               1,977             1        1,977             12        11             7  

 

Japan

        198           0        198           –8           189             169           0        169           17        17           12  

 

Rest of APJ

          637             0        637             –28             609               535             0        535             19        19             14  

 

Total APJ

        835           0        835           –36           798             704           0        704           19        19           13  

 

Total revenue

 

         

 

 5,285

 

  

 

          

 

 0

 

  

 

     

 

 5,285

 

  

 

          

 

 –159

 

  

 

          

 

 5,126

 

  

 

            

 

 4,727

 

  

 

          

 

 1

 

  

 

     

 

 4,728

 

  

 

          

 

 12

 

  

 

     

 

 12

 

  

 

          

 

 8

 

  

 

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 Q1 2017 Quarterly Statement

      16  

Employees by Region and Functional Areas

 

     

 

31.03.2017

 

      31.03.2016    

 

Full-time equivalents

      EMEA        Americas        APJ        Total        EMEA        Americas        APJ        Total    

 

Cloud and software

      6,575        4,596        5,524        16,696        6,121        4,008        5,094        15,224    

 

Services

      6,578        4,204        4,073        14,855        6,468        3,886        3,628        13,982    

 

Research and development

      10,675        4,964        8,051        23,691        9,717        4,364        7,095        21,177    

 

Sales and marketing

      8,680        8,845        4,550        22,074        7,768        8,106        4,086        19,959    

 

General and administration

      2,689        1,799        1,036        5,525        2,506        1,648        963        5,116    

 

Infrastructure

      1,638        812        460        2,910        1,541        790        441        2,772    

 

SAP Group (March 31)

      36,835        25,221        23,694        85,751        34,121        22,802        21,307        78,230    

 

Thereof acquisitions 1)

      4        13        0        17        4        25        0        29    

 

SAP Group (three months’ end average)

 

     

 

 36,681

 

  

 

     

 

 25,066

 

  

 

     

 

 23,512

 

  

 

     

 

 85,259

 

  

 

     

 

 34,046

 

  

 

     

 

 22,578

 

  

 

     

 

 21,223

 

  

 

     

 

 77,847  

 

  

 

1) Acquisitions closed between January 1 and March 31 of the respective year.

 

 

 

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SAP Q1 2017 Quarterly Statement

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