WALLDORF, Germany, July 17, 2014 /PRNewswire/ --
- Raising Full Year 2014 Non-IFRS Cloud Subscriptions and Support Revenue Outlook to €1,000 – €1,050 Million at Constant Currencies
- Fastest Growing Enterprise Cloud Company at Scale: Non-IFRS Cloud Subscriptions and Support Revenue Increased 39% at Constant Currencies (32% at Actual Currencies)
- Strong Cloud Billings: Non-IFRS Calculated Cloud Billings Increased 37% at Constant Currencies
- Growing the World's Largest Business Network: Approximately 1.55 Million Connected Companies Transacting Approximately $540 Billion
- Broad Market Adoption of SAP HANA as Real-Time Business Platform: 1,200 SAP Business Suite on HANA Customers
- Delivered Second Quarter at High End of Full Year SSRS Outlook: Non-IFRS Software and Software-Related Service Revenue Increased 8% at Constant Currencies (4% at Actual Currencies to €3.48 Billion)
- IFRS Operating Profit of €698 Million (2013: €988 Million) Impacted by Provision of €289 Million for Seven-Year Old Versata Litigation
- Non-IFRS Operating Profit Increased 7% at Constant Currencies (4% at Actual Currencies to €1.24 Billion), Resulting in a 60 Basis Point Increase in Non-IFRS Operating Margin at Constant Currencies1
SAP SE (NYSE: SAP) today announced its financial results for the second quarter and first half ended June 30, 2014.
BUSINESS HIGHLIGHTS IN THE SECOND QUARTER 2014
SAP again delivered strong growth in the cloud and a solid performance in its core business. With non-IFRS cloud subscriptions and support revenue increasing 39% at constant currencies (32% at actual currencies) SAP is the fastest growing enterprise cloud company at scale2. Non-IFRS software and software-related service revenue grew 8% at constant currencies (4% at actual currencies).
At the Company's user conference SAPPHIRE NOW in May SAP launched the "Run simple" strategy with cloud and SAP HANA at its core to simplify the business experience and consumption for its customers. HANA is radically simplifying the technology stack. Cloud is radically simplifying the consumption of SAP's solutions. As a first example for "Run simple" the Company has included the SAP FIORI user experience within underlying licenses of SAP software.
"We are successfully executing our shift to the cloud helping customers run simple – from total workforce management in the cloud to frictionless commerce through the world's largest business network," said Bill McDermott, CEO of SAP. "And we are redefining customer engagement with our omni-channel e-commerce platform – all of this in real time demonstrating our clear commitment to be THE Cloud Company powered by SAP HANA."
"With 8% constant currency growth in non-IFRS software and software-related service revenue we are delivering solid growth at the high end of our full year outlook range. We continue to improve our profitability with operating profit up 7% on a non-IFRS constant currency basis leading to double-digit growth in non-IFRS EPS," said Luka Mucic, CFO of SAP. "As we continue to expand our cloud business we have increased our full year non-IFRS cloud subscriptions and support revenue outlook to €1,000 – €1,050 million at constant currencies."
SAP's annual cloud revenue run rate is now approaching €1.2 billion3 or $1.6 billion4. Non-IFRS calculated cloud billings5 increased 37% year-over-year at constant currencies. Non-IFRS deferred cloud subscriptions and support revenue was €448 million as of June 30, 2014, a year-over-year increase of 29% at constant currencies. SAP's cloud applications total subscribers now exceed 38 million, which is the most of any enterprise cloud vendor in the industry today. The Company has also launched "Industry Cloud" to build the deepest and broadest industry cloud solutions.
SAP is redefining customer engagement. Its hybris omni-channel e-commerce platform in combination with Cloud for Sales saw triple-digit growth in software revenue and cloud subscriptions and support revenue.
SAP is enabling the global "Network Economy" with approximately 1.55 million connected companies on the world's largest cloud-based business trading community. Trailing twelve month Ariba network spend volume6 was approximately $540 billion – two times the size of Amazon and eBay combined. The addition of Fieldglass expands our network capabilities by increasing our addressable market to cover flexible workforce in addition to materials and services.
The Company saw continued broad market adoption of SAP HANA as the Real-Time Business Platform across all industries and regions. SAP HANA is at the core of the Company's "Run simple" strategy: integrating all SAP solutions on ONE business platform in the Cloud. SAP saw accelerated HANA momentum and now has more than 3,600 HANA customers and more than 1,200 customers for SAP Business Suite on HANA. SAP HANA is also evolving into the leading technology platform with more than 1,500 startup companies building applications on SAP HANA and new strategic partnerships with HP and VMware.
Second Quarter 2014 Regional Revenue
SAP saw a strong performance in EMEA, despite uncertainties due to the Ukraine crisis. Non-IFRS software and software-related service revenue increased 8% year-over-year at constant currencies. This was the result of 51% growth in non-IFRS cloud subscriptions and support revenue at constant currencies for the region as well as strong software revenue growth in the UK and France.
The Americas region had a solid performance. Non-IFRS software and software-related service revenue increased 6% year-over-year at constant currencies. The region continued the fast transition to the cloud with 34% growth in non-IFRS cloud subscriptions and support revenue at constant currencies. SAP also saw strong software revenue growth in Canada and continues to see strong demand in Latin America with tremendous growth opportunities.
In the APJ region SAP had a strong performance. Non-IFRS software and software-related service revenue grew by 12% at constant currencies. Non-IFRS cloud subscriptions and support revenue grew by 48% at constant currencies. Australia and Malaysia were highlights, with strong triple-digit software revenue growth at constant currencies.
FINANCIAL RESULTS IN DETAIL
FINANCIAL HIGHLIGHTS – Second Quarter 2014 | |||||||
Second Quarter 20141) | |||||||
IFRS | Non-IFRS2) | ||||||
€ million, unless otherwise stated | Q2 2014 | Q2 2013 | % change | Q2 2014 | Q2 2013 | % change | % change const. curr. |
Cloud subscriptions and support | 241 | 159 | 52 | 242 | 183 | 32 | 39 |
Software | 957 | 982 | −2 | 957 | 982 | −2 | 1 |
Support | 2,279 | 2,177 | 5 | 2,280 | 2,182 | 4 | 9 |
Software and support | 3,237 | 3,159 | 2 | 3,238 | 3,164 | 2 | 6 |
Software and software-related service revenue | 3,478 | 3,318 | 5 | 3,480 | 3,347 | 4 | 8 |
Total revenue | 4,151 | 4,062 | 2 | 4,153 | 4,091 | 2 | 5 |
Total operating expenses | −3,453 | −3,074 | 12 | −2,917 | −2,905 | 0 | 5 |
Operating profit | 698 | 988 | −29 | 1,236 | 1,186 | 4 | 7 |
Operating margin (%) | 16.8 | 24.3 | −7.5pp | 29.8 | 29.0 | 0.8pp | 0.6pp |
Profit after tax | 556 | 724 | −23 | 938 | 850 | 10 | |
Basic earnings per share (€) | 0.47 | 0.61 | −23 | 0.79 | 0.71 | 10 | |
Number of employees (FTE) | 67,651 | 64,937 | 4 | N/A | N/A | N/A | N/A |
1) All figures are unaudited. | |||||||
2) For a detailed description of SAP's non-IFRS measures see Explanation of Non-IFRS Measures online. For a breakdown of the individual adjustments see page F10 in the appendix to this press release. | |||||||
IFRS cloud subscriptions and support revenue was €241 million (2013: €159 million), an increase of 52%. Non-IFRS cloud subscriptions and support revenue was €242 million (2013: €183 million), an increase of 32% (39% at constant currencies). IFRS software and support revenue was €3.24 billion (2013: €3.16 billion), an increase of 2%. Non-IFRS software and support revenue was €3.24 billion (2013: €3.16 billion), an increase of 2% (6% at constant currencies). IFRS software and software-related service revenue was €3.48 billion (2013: €3.32 billion), an increase of 5%. Non-IFRS software and software-related service revenue was €3.48 billion (2013: €3.35 billion), an increase of 4% (8% at constant currencies). IFRS total revenue was €4.15 billion (2013: €4.06 billion), an increase of 2%. Non-IFRS total revenue was €4.15 billion (2013: €4.09 billion), an increase of 2% (5% at constant currencies).
IFRS operating profit was €698 million (2013: €988 million), a decrease of 29%. Non-IFRS operating profit was €1.24 billion (2013: €1.19 billion), an increase of 4% (7% at constant currencies). IFRS operating margin was 16.8% (2013: 24.3%), a decrease of 7.5 percentage points. The IFRS operating profit and margin were negatively impacted by the Versata litigation provision. Non-IFRS operating margin was 29.8% (2013: 29.0%), or 29.5% at constant currencies, an increase of 0.6 percentage points at constant currencies.
IFRS profit after tax was €556 million (2013: €724 million), a decrease of 23%. Non-IFRS profit after tax was €938 million (2013: €850 million), an increase of 10%. IFRS basic earnings per share was €0.47 (2013: €0.61), a decrease of 23%. Non-IFRS basic earnings per share was €0.79 (2013: €0.71), an increase of 10%. The IFRS and non-IFRS effective tax rates in the second quarter of 2014 were 22.6% (2013: 24.8%) and 25.4% (2013: 26.8%), respectively.
FINANCIAL HIGHLIGHTS – First Half 2014 | |||||||
First Half 20141) | |||||||
IFRS | Non-IFRS2) | ||||||
€ million, unless otherwise stated | 1H 2014 | 1H 2013 | % change | 1H 2014 | 1H 2013 | % change | % change const. curr. |
Cloud subscriptions and support | 460 | 296 | 55 | 463 | 350 | 32 | 38 |
Software | 1,581 | 1,638 | −4 | 1,581 | 1,638 | −4 | 1 |
Support | 4,492 | 4,286 | 5 | 4,495 | 4,295 | 5 | 9 |
Software and support | 6,072 | 5,924 | 3 | 6,075 | 5,934 | 2 | 6 |
Software and software-related service revenue | 6,533 | 6,220 | 5 | 6,538 | 6,284 | 4 | 8 |
Total revenue | 7,849 | 7,663 | 2 | 7,854 | 7,727 | 2 | 6 |
Total operating expenses | −6,428 | −6,029 | 7 | −5,699 | −5,639 | 1 | 5 |
Operating profit | 1,421 | 1,634 | −13 | 2,155 | 2,088 | 3 | 7 |
Operating margin (%) | 18.1 | 21.3 | −3.2pp | 27.4 | 27.0 | 0.4pp | 0.3pp |
Profit after tax | 1,090 | 1,244 | −12 | 1,604 | 1,539 | 4 | |
Basic earnings per share (€) | 0.91 | 1.04 | −12 | 1.34 | 1.29 | 4 | |
Number of employees (FTE) | 67,651 | 64,937 | 4 | N/A | N/A | N/A | N/A |
1) All figures are unaudited. | |||||||
2) For a detailed description of SAP's non-IFRS measures see Explanation of Non-IFRS Measures online. For a breakdown of the individual adjustments see page F10 in the appendix to this press release. | |||||||
IFRS cloud subscriptions and support revenue was €460 million (2013: €296 million), an increase of 55%. Non-IFRS cloud subscriptions and support revenue was €463 million (2013: €350 million), an increase of 32% (38% at constant currencies). IFRS software and support revenue was €6.07 billion (2013: €5.92 billion), an increase of 3%. Non-IFRS software and support revenue was €6.08 billion (2013: €5.93 billion), an increase of 2% (6% at constant currencies). IFRS software and software-related service revenue was €6.53 billion (2013: €6.22 billion), an increase of 5%. Non-IFRS software and software-related service revenue was €6.54 billion (2013: €6.28 billion), an increase of 4% (8% at constant currencies). IFRS total revenue was €7.85 billion (2013: €7.66 billion), an increase of 2%. Non-IFRS total revenue was €7.85 billion (2013: €7.73 billion), an increase of 2% (6% at constant currencies).
IFRS operating profit was €1.42 billion (2013: €1.63 billion), a decrease of 13%. Non-IFRS operating profit was €2.16 billion (2013: €2.09 billion), an increase of 3% (7% at constant currencies). IFRS operating margin was 18.1% (2013: 21.3%), a decrease of 3.2 percentage points. The IFRS operating profit and margin were negatively impacted by the Versata litigation provision. Non-IFRS operating margin was 27.4% (2013: 27.0%), or 27.4% at constant currencies, an increase of 0.3 percentage points at constant currencies.
IFRS profit after tax was €1.09 billion (2013: €1.24 billion), a decrease of 12%. Non-IFRS profit after tax was €1.60 billion (2013: €1.54 billion), an increase of 4%. IFRS basic earnings per share was €0.91 (2013: €1.04), a decrease of 12%. Non-IFRS basic earnings per share was €1.34 (2013: €1.29), an increase of 4%. The IFRS and non-IFRS effective tax rates in the first half of 2014 were 23.4% (2013: 21.5%) and 25.6% (2013: 24.5%), respectively.
Cash Flow – First Half 2014
Operating cash flow was €2.58 billion (2013: €2.48 billion), an increase of 4% year-over-year. Free cash flow was €2.27 billion (2013: €2.22 billion), an increase of 2% year-over-year. Free cash flow was 29% of total revenue (2013: 29%). At June 30, 2014, SAP had a total group liquidity of €3.18 billion (December 31, 2013: €2.84 billion), which includes cash and cash equivalents and short term investments. Net liquidity at June 30, 2014 was -€1.06 billion compared to -€1.47 billion at December 31, 2013.
BUSINESS OUTLOOK 2014
The Company updated its outlook for the full-year 2014:
- The Company now expects full year 2014 non-IFRS cloud subscriptions and support revenue to be in a range of €1,000 – €1,050 million (previously €950 – €1,000 million) at constant currencies (2013: €757 million). The upper end of this range represents a growth rate of 39%.
- The Company continues to expect full year 2014 non-IFRS software and software-related service revenue to increase by 6% - 8% at constant currencies (2013: €14.03 billion).
- The Company continues to expect full-year 2014 non-IFRS operating profit to be in a range of €5.8 billion – €6.0 billion at constant currencies (2013: €5.48 billion).
While the Company's full-year 2014 business outlook is at constant currency, actual currency reported figures are expected to continue to be negatively impacted by currency exchange rate fluctuations. If exchange rates remain at the June 2014 level for the rest of the year, the Company expects non-IFRS software and software-related service revenue and non-IFRS operating profit growth rates at actual currency to experience a negative currency impact of approximately 2 percentage points and 2 percentage points respectively for the third quarter of 2014 and of approximately 2 percentage points and 2 percentage points respectively for the full year 2014.
Additional Information
2014 revenue, profit and cash flow figures include the revenue and profits from hybris and Fieldglass. The comparative numbers for 2013 do not include Fieldglass and hybris was included first on August 1, 2013.
In the second quarter 2014 SAP recognized an expense resulting from a provision for the Versata litigation in the amount of €289 million. In contrast, the respective operating expense from the second quarter of 2013 decreased as SAP reversed the then-existing Versata provision of €33 million in response to the United States Patent and Trademark Office (USPTO) decision to cancel the disputed patent. The Versata litigation is a seven year old case that is still ongoing. Recent developments in the courts have made it probable that SAP will be required to pay Versata although the patent has been canceled by the USPTO. For more information about this litigation, see the Notes to the second quarter 2014 Interim Report (Interim Financial Statements section, Note (16)).
While the resulting provision for the Versata litigation impacts SAP's IFRS operating profit and margin it does not have an effect on SAP's non-IFRS operating profit and margin. Beginning with Q2 2014 SAP now additionally adjusts its non-IFRS operating expenses definition by excluding the expenses resulting from the Versata litigation. Prior period amounts have been adjusted to comply with the new definition.
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.
Second Quarter 2014 Interim Report
SAP's second quarter 2014 Interim Report was published today and is available for download at www.sap.com/investor.
Webcast
SAP senior management will host a conference call for financial analysts and media on Thursday, July 17th at 2:00 PM (CEST) / 1:00 PM (GMT) / 8:00 AM (EDT) / 5:00 AM (PDT). The conference call will be web cast live on the Company's website at www.sap.com/investor and will be available for replay.
About SAP
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 261,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.
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1 Starting in the second quarter 2014 SAP additionally adjusted its non-IFRS operating expenses definition by excluding the expenses resulting from the Versata litigation. Prior period amounts have been adjusted to comply with the new definition. Second quarter 2013 non-IFRS operating margin is now 29.0%.
2 Defined as enterprise application companies with an annual cloud revenue run rate above €1 billion.
3 The annual revenue run rate is the total of second quarter 2014 non-IFRS cloud subscriptions and support revenue (€242 million) plus non-IFRS cloud-related professional services and other service revenue (€54 million) multiplied by 4.
4 Translated into USD for reader's convenience based on $/€ exchange rate of $1.37/€1.00 at the end of the second quarter 2014.
5 Total of a period's cloud subscriptions and support revenue and of the respective period's change in the deferred cloud subscription and support revenue balance. The opening balance for Fieldglass deferred cloud subscriptions and support revenue at May 2, 2014 was €1 million (both on an IFRS and non-IFRS basis). In the second quarter 2014, Fieldglass contributed €11 million to SAP's cloud subscriptions and support revenue (both on an IFRS and non-IFRS basis).
6 Network spend volume is the total value of purchase orders transacted on the Ariba Network in the trailing 12 months.
Appendix – Financial Information to Follow
FINANCIAL INFORMATION | |
FOR THE SECOND QUARTER 2014 | |
(Condensed and Unaudited) | |
Page | |
Financial Statements (IFRS, Unaudited) | |
Consolidated Income Statements | F1-F2 |
Consolidated Statements of Financial Position | F3 |
Consolidated Statements of Cash Flows | F4 |
Supplementary Financial Information (Unaudited) | |
Reconciliation from Non-IFRS Numbers to IFRS Numbers | F5-F8 |
Calculated Cloud Billings | F9 |
Explanation of Non-IFRS Adjustments | F10 |
Revenue by Region | F11-F12 |
Financial Statements (IFRS, Unaudited)
Consolidated Income Statements of SAP Group – Quarter | ||||
For the three months ended June 30 | ||||
€ millions, unless otherwise stated | 2014 | 2013 | Change in % | |
Cloud subscriptions and support | 241 | 159 | 52 | |
Software | 957 | 982 | −2 | |
Support | 2,279 | 2,177 | 5 | |
Software and support | 3,237 | 3,159 | 2 | |
Software and software-related service revenue | 3,478 | 3,318 | 5 | |
Professional services and other service revenue | 673 | 744 | −10 | |
Total revenue | 4,151 | 4,062 | 2 | |
Cost of software and software-related services | −698 | −630 | 11 | |
Cost of professional services and other services | −591 | −609 | −3 | |
Total cost of revenue | −1,289 | −1,240 | 4 | |
Gross profit | 2,862 | 2,822 | 1 | |
Research and development | −566 | −567 | 0 | |
Sales and marketing | −1,049 | −1,059 | −1 | |
General and administration | −218 | −232 | −6 | |
Restructuring | −39 | −17 | >100 | |
TomorrowNow and Versata litigation | −289 | 33 | <-100 | |
Other operating income/expense, net | −3 | 9 | <-100 | |
Total operating expenses | −3,453 | −3,074 | 12 | |
Operating profit | 698 | 988 | −29 | |
Other non-operating income/expense, net | 4 | −2 | <-100 | |
Finance income | 47 | 26 | 79 | |
Finance costs | −30 | −49 | −39 | |
Financial income, net | 17 | −23 | <-100 | |
Profit before tax | 719 | 963 | −25 | |
Income tax TomorrowNow and Versata litigation | 76 | −9 | <-100 | |
Other income tax expense | −239 | −230 | 4 | |
Income tax expense | −163 | −239 | −32 | |
Profit after tax | 556 | 724 | −23 | |
Profit attributable to non-controlling interests | −1 | 0 | 38 | |
Profit attributable to owners of parent | 557 | 725 | −23 | |
Earnings per share, basic (in €)* | 0.47 | 0.61 | −23 | |
Earnings per share, diluted (in €)* | 0.47 | 0.61 | −23 | |
* For the three months ended June 30, 2014 and 2013, the weighted average number of shares was 1,194 million (diluted 1,197 million) and 1,193 million (diluted: 1,195 million), respectively (treasury stock excluded). | ||||
Due to rounding, numbers may not add up precisely. | ||||
F1 | ||||
Consolidated Income Statements of SAP Group – Half-Year | ||||
For the six months ended June 30 | ||||
€ millions, unless otherwise stated | 2014 | 2013 | Change in % | |
Cloud subscriptions and support | 460 | 296 | 55 | |
Software | 1,581 | 1,638 | −4 | |
Support | 4,492 | 4,286 | 5 | |
Software and support | 6,072 | 5,924 | 3 | |
Software and software-related service revenue | 6,533 | 6,220 | 5 | |
Professional services and other service revenue | 1,316 | 1,443 | −9 | |
Total revenue | 7,849 | 7,663 | 2 | |
Cost of software and software-related services | −1,343 | −1,234 | 9 | |
Cost of professional services and other services | −1,182 | −1,215 | −3 | |
Total cost of revenue | −2,525 | −2,448 | 3 | |
Gross profit | 5,324 | 5,215 | 2 | |
Research and development | −1,116 | −1,124 | −1 | |
Sales and marketing | −2,016 | −2,034 | −1 | |
General and administration | −423 | −429 | −1 | |
Restructuring | −54 | −31 | 78 | |
TomorrowNow and Versata litigation | −290 | 32 | <-100 | |
Other operating income/expense, net | −4 | 5 | <-100 | |
Total operating expenses | −6,428 | −6,029 | 7 | |
Operating profit | 1,421 | 1,634 | −13 | |
Other non-operating income/expense, net | −7 | −13 | −48 | |
Finance income | 69 | 56 | 24 | |
Finance costs | −61 | −93 | −35 | |
Financial income, net | 9 | −37 | <-100 | |
Profit before tax | 1,423 | 1,584 | −10 | |
Income tax TomorrowNow and Versata litigation | 77 | −9 | <-100 | |
Other income tax expense | −409 | −331 | 23 | |
Income tax expense | −332 | −340 | −2 | |
Profit after tax | 1,090 | 1,244 | −12 | |
Profit attributable to non-controlling interests | −1 | 0 | >100 | |
Profit attributable to owners of parent | 1,091 | 1,245 | −12 | |
Earnings per share, basic (in €)* | 0.91 | 1.04 | −12 | |
Earnings per share, diluted (in €)* | 0.91 | 1.04 | −12 | |
* For the six months ended June 30, 2014 and 2013, the weighted average number of shares was 1,194 million (diluted 1,197 million) and 1,193 million (diluted: 1,195 million), respectively (treasury stock excluded). | ||||
Due to rounding, numbers may not add up precisely. | ||||
F2 | ||||
Consolidated Statements of Financial Position of SAP Group | |||
as at June 30, 2014 and December 31, 2013 | |||
€ millions | 2014 | 2013 | |
Cash and cash equivalents | 3,123 | 2,748 | |
Other financial assets | 230 | 251 | |
Trade and other receivables | 3,614 | 3,865 | |
Other non-financial assets | 470 | 346 | |
Tax assets | 172 | 142 | |
Total current assets | 7,610 | 7,352 | |
Goodwill | 14,380 | 13,684 | |
Intangible assets | 2,907 | 2,956 | |
Property, plant, and equipment | 1,847 | 1,820 | |
Other financial assets | 726 | 607 | |
Trade and other receivables | 80 | 98 | |
Other non-financial assets | 105 | 107 | |
Tax assets | 192 | 172 | |
Deferred tax assets | 379 | 292 | |
Total non-current assets | 20,616 | 19,736 | |
Total assets | 28,226 | 27,089 | |
as at June 30, 2014 and December 31, 2013 | |||
€ millions | 2014 | 2013 | |
Trade and other payables | 846 | 850 | |
Tax liabilities | 205 | 433 | |
Financial liabilities | 580 | 748 | |
Other non-financial liabilities | 1,616 | 2,263 | |
Provision TomorrowNow and Versata litigation | 514 | 223 | |
Other provisions | 320 | 422 | |
Provisions | 834 | 645 | |
Deferred income | 3,304 | 1,408 | |
Total current liabilities | 7,385 | 6,347 | |
Trade and other payables | 50 | 45 | |
Tax liabilities | 355 | 318 | |
Financial liabilities | 3,791 | 3,758 | |
Other non-financial liabilities | 115 | 112 | |
Provisions | 211 | 278 | |
Deferred tax liabilities | 102 | 109 | |
Deferred income | 63 | 74 | |
Total non-current liabilities | 4,687 | 4,694 | |
Total liabilities | 12,072 | 11,041 | |
Issued capital | 1,229 | 1,229 | |
Share premium | 578 | 551 | |
Retained earnings | 16,156 | 16,258 | |
Other components of equity | −582 | −718 | |
Treasury shares | −1,234 | −1,280 | |
Equity attributable to owners of parent | 16,147 | 16,040 | |
Non-controlling interests | 7 | 8 | |
Total equity | 16,154 | 16,048 | |
Total equity and liabilities | 28,226 | 27,089 | |
Due to rounding, numbers may not add up precisely. | |||
F3 | |||
Consolidated Statements of Cash Flows of SAP Group | ||
For the six months ended June 30 | ||
€ millions | 2014 | 2013 |
Profit after tax | 1,090 | 1,244 |
Adjustments to reconcile profit after taxes to net cash provided by operating activities: | ||
Depreciation and amortization | 478 | 478 |
Income tax expense | 332 | 340 |
Financial income, net | −9 | 37 |
Decrease/increase in sales and bad debt allowances on trade receivables | 16 | 38 |
Other adjustments for non-cash items | 52 | 44 |
Decrease/increase in trade and other receivables | 297 | 470 |
Decrease/increase in other assets | −188 | −129 |
Decrease/increase in trade payables, provisions, and other liabilities | −593 | −945 |
Decrease/increase in deferred income | 1,855 | 1,735 |
Cash outflows due to TomorrowNow and Versata litigation | 0 | −1 |
Interest paid | −73 | −80 |
Interest received | 27 | 33 |
Income taxes paid, net of refunds | −709 | −782 |
Net cash flows from operating activities | 2,575 | 2,482 |
Business combinations, net of cash and cash equivalents acquired | −729 | −99 |
Purchase of intangible assets and property, plant, and equipment | −304 | −265 |
Proceeds from sales of intangible assets or property, plant, and equipment | 27 | 23 |
Purchase of equity or debt instruments of other entities | −713 | −1,200 |
Proceeds from sales of equity or debt instruments of other entities | 721 | 1,079 |
Net cash flows from investing activities | −998 | −462 |
Dividends paid | −1,194 | −1,013 |
Proceeds from reissuance of treasury shares | 27 | 9 |
Proceeds from borrowings | 500 | 0 |
Repayments of borrowings | −586 | 0 |
Net cash flows from financing activities | −1,253 | −1,004 |
Effect of foreign exchange rates on cash and cash equivalents | 51 | −107 |
Net decrease/increase in cash and cash equivalents | 375 | 909 |
Cash and cash equivalents at the beginning of the period | 2,748 | 2,477 |
Cash and cash equivalents at the end of the period | 3,123 | 3,386 |
Due to rounding, numbers may not add up precisely. | ||
F4 | ||
Supplementary Financial Information (UNAUDITED) | |||||||||||
RECONCILIATION FROM NON-IFRS NUMBERS TO IFRS NUMBERS | |||||||||||
The following tables present a reconciliation from our non-IFRS numbers (including our non-IFRS at constant currency numbers) to the respective most comparable IFRS numbers. Note: Our non-IFRS numbers are not prepared under a comprehensive set of accounting rules or principles. | |||||||||||
For the three months ended June 30 | |||||||||||
€ millions, unless otherwise stated | 2014 | 2013 | Change in % | ||||||||
IFRS | Adj.* | Non-IFRS* | Currency Impact** | Non-IFRS Constant Currency** | IFRS | Adj.* | Non-IFRS* | IFRS | Non-IFRS* | Non-IFRS Constant Currency** | |
Revenue Numbers | |||||||||||
Cloud subscriptions and support | 241 | 1 | 242 | 12 | 254 | 159 | 24 | 183 | 52 | 32 | 39 |
Software | 957 | 0 | 957 | 29 | 987 | 982 | 0 | 982 | −2 | −2 | 1 |
Support | 2,279 | 1 | 2,280 | 90 | 2,370 | 2,177 | 5 | 2,182 | 5 | 4 | 9 |
Software and support | 3,237 | 1 | 3,238 | 119 | 3,357 | 3,159 | 5 | 3,164 | 2 | 2 | 6 |
Software and software-related service revenue | 3,478 | 2 | 3,480 | 131 | 3,611 | 3,318 | 29 | 3,347 | 5 | 4 | 8 |
Professional services and other service revenue | 673 | 0 | 673 | 26 | 699 | 744 | 0 | 744 | −10 | −10 | −6 |
thereof cloud-related | 54 | 0 | 54 | 2 | 56 | 39 | 0 | 39 | 39 | 39 | 44 |
Total revenue | 4,151 | 2 | 4,153 | 157 | 4,310 | 4,062 | 29 | 4,091 | 2 | 2 | 5 |
Cloud subscriptions and support | 241 | 1 | 242 | 12 | 254 | 159 | 24 | 183 | 52 | 32 | 39 |
Cloud-related professional services revenue | 54 | 0 | 54 | 2 | 56 | 39 | 0 | 39 | 39 | 39 | 44 |
Cloud revenue | 295 | 1 | 296 | 14 | 310 | 198 | 24 | 222 | 49 | 34 | 40 |
Operating Expense Numbers | |||||||||||
Cost of software and software-related services | −698 | 86 | −612 | −630 | 76 | −554 | 11 | 10 | |||
thereof cloud | −105 | 17 | −87 | −71 | 21 | −50 | 47 | 75 | |||
Cost of professional services and other services | −591 | 33 | −559 | −609 | 23 | −586 | −3 | −5 | |||
Total cost of revenue | −1,289 | 118 | −1,171 | −1,240 | 99 | −1,140 | 4 | 3 | |||
Gross profit | 2,862 | 120 | 2,982 | 2,822 | 129 | 2,951 | 1 | 1 | |||
Research and development | −566 | 35 | −531 | −567 | 17 | −551 | 0 | −3 | |||
Sales and marketing | −1,049 | 43 | −1,006 | −1,059 | 44 | −1,015 | −1 | −1 | |||
General and administration | −218 | 12 | −206 | −232 | 24 | −208 | −6 | −1 | |||
Restructuring | −39 | 39 | 0 | −17 | 17 | 0 | >100 | 0 | |||
TomorrowNow and Versata litigation | −289 | 289 | 0 | 33 | −33 | 0 | <-100 | 0 | |||
Other operating income/expense, net | −3 | 0 | −3 | 9 | 0 | 9 | <-100 | <-100 | |||
Total operating expenses | −3,453 | 536 | −2,917 | −119 | −3,036 | −3,074 | 168 | −2,905 | 12 | 0 | 5 |
F5 | |||||||||||
For the three months ended June 30 | |||||||||||
€ millions, unless otherwise stated | 2014 | 2013 | Change in % | ||||||||
IFRS | Adj.* | Non-IFRS* | Currency Impact** | Non-IFRS Constant Currency** | IFRS | Adj.* | Non-IFRS* | IFRS | Non-IFRS* | Non-IFRS Constant Currency** | |
Profit Numbers | |||||||||||
Operating profit | 698 | 538 | 1,236 | 38 | 1,273 | 988 | 198 | 1,186 | −29 | 4 | 7 |
Other non-operating income/expense, net | 4 | 0 | 4 | −2 | 0 | −2 | <-100 | <-100 | |||
Finance income | 47 | 0 | 47 | 26 | 0 | 26 | 79 | 79 | |||
Finance costs | −30 | 0 | −30 | −49 | 0 | −49 | −39 | −39 | |||
Financial income, net | 17 | 0 | 17 | −23 | 0 | −23 | <-100 | <-100 | |||
Profit before tax | 719 | 538 | 1,257 | 963 | 198 | 1,161 | −25 | 8 | |||
Income tax TomorrowNow and Versata litigation | 76 | −76 | 0 | −9 | 9 | 0 | <-100 | >100 | |||
Other income tax expense | −239 | −80 | −319 | −230 | −81 | −311 | 4 | 3 | |||
Income tax expense | −163 | −156 | −319 | −239 | −72 | −311 | −32 | 3 | |||
Profit after tax | 556 | 382 | 938 | 724 | 125 | 850 | −23 | 10 | |||
Profit attributable to non-controlling interests | −1 | 0 | −1 | 0 | 0 | 0 | 38 | 38 | |||
Profit attributable to owners of parent | 557 | 382 | 939 | 725 | 125 | 850 | −23 | 10 | |||
Key Ratios | |||||||||||
Operating margin (in %) | 16.8 | 29.8 | 29.5 | 24.3 | 29.0 | −7.5pp | 0.8pp | 0.6pp | |||
Effective tax rate (in %) | 22.6 | 25.4 | 24.8 | 26.8 | −2.2pp | −1.4pp | |||||
Earnings per share, basic (in €) | 0.47 | 0.79 | 0.61 | 0.71 | −23 | 10 | |||||
F6 | |||||||||||
For the six months ended June 30 | |||||||||||
€ millions, unless otherwise stated | 2014 | 2013 | Change in % | ||||||||
IFRS | Adj.* | Non-IFRS* | Currency Impact** | Non-IFRS Constant Currency** | IFRS | Adj.* | Non-IFRS* | IFRS | Non-IFRS* | Non-IFRS Constant Currency** | |
Revenue Numbers | |||||||||||
Cloud subscriptions and support | 460 | 2 | 463 | 22 | 485 | 296 | 54 | 350 | 55 | 32 | 38 |
Software | 1,581 | 0 | 1,581 | 67 | 1,647 | 1,638 | 0 | 1,638 | −4 | −4 | 1 |
Support | 4,492 | 3 | 4,495 | 173 | 4,667 | 4,286 | 10 | 4,295 | 5 | 5 | 9 |
Software and support | 6,072 | 3 | 6,075 | 239 | 6,315 | 5,924 | 10 | 5,934 | 3 | 2 | 6 |
Software and software-related service revenue | 6,533 | 5 | 6,538 | 261 | 6,800 | 6,220 | 64 | 6,284 | 5 | 4 | 8 |
Professional services and other service revenue | 1,316 | 0 | 1,316 | 56 | 1,372 | 1,443 | 0 | 1,443 | −9 | −9 | −5 |
thereof cloud-related | 98 | 0 | 98 | 4 | 102 | 82 | 0 | 82 | 19 | 19 | 24 |
Total revenue | 7,849 | 5 | 7,854 | 318 | 8,172 | 7,663 | 64 | 7,727 | 2 | 2 | 6 |
Cloud subscriptions and support | 460 | 2 | 463 | 22 | 485 | 296 | 54 | 350 | 55 | 32 | 38 |
Cloud-related professional services revenue | 98 | 0 | 98 | 4 | 102 | 82 | 0 | 82 | 19 | 19 | 24 |
Cloud revenue | 558 | 2 | 560 | 26 | 587 | 378 | 54 | 433 | 47 | 30 | 36 |
Operating Expense Numbers | |||||||||||
Cost of software and software-related services | −1,343 | 165 | −1,178 | −1,234 | 173 | −1,060 | 9 | 11 | |||
thereof cloud | −188 | 36 | −152 | −154 | 58 | −96 | 22 | 58 | |||
Cost of professional services and other services | −1,182 | 58 | −1,124 | −1,215 | 51 | −1,164 | −3 | −3 | |||
Total cost of revenue | −2,525 | 223 | −2,302 | −2,448 | 224 | −2,224 | 3 | 4 | |||
Gross profit | 5,324 | 228 | 5,552 | 5,215 | 288 | 5,503 | 2 | 1 | |||
Research and development | −1,116 | 58 | −1,057 | −1,124 | 38 | −1,086 | −1 | −3 | |||
Sales and marketing | −2,016 | 77 | −1,939 | −2,034 | 96 | −1,939 | −1 | 0 | |||
General and administration | −423 | 27 | −396 | −429 | 33 | −396 | −1 | 0 | |||
Restructuring | −54 | 54 | 0 | −31 | 31 | 0 | 78 | 0 | |||
TomorrowNow and Versata litigation | −290 | 290 | 0 | 32 | −32 | 0 | <-100 | 0 | |||
Other operating income/expense, net | −4 | 0 | −4 | 5 | 0 | 5 | <-100 | <-100 | |||
Total operating expenses | −6,428 | 729 | −5,699 | −237 | −5,936 | −6,029 | 390 | −5,639 | 7 | 1 | 5 |
F7 | |||||||||||
For the six months ended June 30 | |||||||||||
€ millions, unless otherwise stated | 2014 | 2013 | Change in % | ||||||||
IFRS | Adj.* | Non-IFRS* | Currency Impact** | Non-IFRS Constant Currency** | IFRS | Adj.* | Non-IFRS* | IFRS | Non-IFRS* | Non-IFRS Constant Currency** | |
Profit Numbers | |||||||||||
Operating profit | 1,421 | 735 | 2,155 | 81 | 2,236 | 1,634 | 454 | 2,088 | −13 | 3 | 7 |
Other non-operating income/expense, net | −7 | 0 | −7 | −13 | 0 | −13 | −48 | −48 | |||
Finance income | 69 | 0 | 69 | 56 | 0 | 56 | 24 | 24 | |||
Finance costs | −61 | 0 | −61 | −93 | 0 | −93 | −35 | −35 | |||
Financial income, net | 9 | 0 | 9 | −37 | 0 | −37 | <-100 | <-100 | |||
Profit before tax | 1,423 | 735 | 2,157 | 1,584 | 454 | 2,038 | −10 | 6 | |||
Income tax TomorrowNow and Versata litigation | 77 | −77 | 0 | −9 | 9 | 0 | <-100 | >100 | |||
Other income tax expense | −409 | −144 | −553 | −331 | −168 | −499 | 23 | 11 | |||
Income tax expense | −332 | −221 | −553 | −340 | −159 | −499 | −2 | 11 | |||
Profit after tax | 1,090 | 514 | 1,604 | 1,244 | 295 | 1,539 | −12 | 4 | |||
Profit attributable to non-controlling interests | −1 | 0 | −1 | 0 | 0 | 0 | >100 | >100 | |||
Profit attributable to owners of parent | 1,091 | 514 | 1,605 | 1,245 | 295 | 1,540 | −12 | 4 | |||
Key Ratios | |||||||||||
Operating margin (in %) | 18.1 | 27.4 | 27.4 | 21.3 | 27.0 | −3.2pp | 0.4pp | 0.3pp | |||
Effective tax rate (in %) | 23.4 | 25.6 | 21.5 | 24.5 | 1.9pp | 1.2pp | |||||
Earnings per share, basic (in €) | 0.91 | 1.34 | 1.04 | 1.29 | −12 | 4 | |||||
* Adjustments in the revenue line items are for support revenue, cloud subscriptions and support revenue, and other similarly recurring revenues that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges, share-based compensation expenses, restructuring expenses, discontinued activities, and the Versata litigation. | |||||||||||
** Constant currency revenue and operating income figures are calculated by translating revenue and operating income of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS number of the previous year's respective period. | |||||||||||
For a more detailed description of these adjustments and their limitations as well as our constant currency figures, see our Web site www.sap.com/corporate-en/investors/newsandreports/reporting-framework.epx under "Non-IFRS Measures and Estimates". | |||||||||||
Due to rounding, numbers may not add up precisely. | |||||||||||
F8 | |||||||||||
CALCULATED CLOUD BILLINGS | ||||||||||
The following table presents the calculated cloud billings metric which we define as the total of a period's cloud subscription and support revenue and of the respective period's change in the deferred cloud subscription and support revenue balance. The table also reconciles the non-IFRS calculated cloud billings metric (including our non-IFRS at constant currency metric) to the respective IFRS based calculated cloud billings metric. | ||||||||||
For the three months ended June 30 | ||||||||||
€ millions, unless otherwise stated | 2014 | 2013 | ||||||||
IFRS | Adj.* | Non-IFRS* | Cur- rency Impact** | Non-IFRS Cons- tant Cur- rency** | IFRS | Adj.* | Non-IFRS* | Cur- rency Impact** | Non-IFRS Cons- tant Cur- rency** | |
Cloud subscriptions and support | 241 | 1 | 242 | 12 | 254 | 159 | 24 | 183 | 0 | 183 |
Closing balance deferred cloud subscriptions and support | 445 | 3 | 448 | 30 | 478 | 354 | 7 | 361 | 9 | 370 |
Opening balance deferred cloud subscriptions and support | 451 | 3 | 454 | 37 | 491 | 344 | 33 | 377 | 0 | 377 |
Change in deferred cloud subscriptions and support | −6 | 0 | −6 | −7 | −13 | 10 | −26 | −16 | 9 | −7 |
Calculated cloud billings | 235 | 1 | 236 | 5 | 241 | 169 | −2 | 167 | 9 | 176 |
Year-over-year changes (2014 vs. 2013, in %) | 39% | 41% | 37% | |||||||
* Adjustments in the revenue and deferred revenue line items are for cloud subscriptions and support revenue, and other similarly recurring revenues that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. | ||||||||||
* * Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency deferred revenue balances are calculated by translating the current period's opening and closing deferred revenue balances as well as the comparative period's closing deferred revenue balance using the opening exchange rates of the comparative period. | ||||||||||
For a more detailed description of these adjustments and their limitations as well as our constant currency figures, see our Web site www.sap.com/corporate-en/investors/newsandreports/reporting-framework.epx under "Non-IFRS Measures and Estimates". | ||||||||||
Due to rounding, numbers may not add up precisely. | ||||||||||
F9 | ||||||||||
EXPLANATION OF NON-IFRS ADJUSTMENTS | ||||
€ millions, unless otherwise stated | 4/1 –6/30/ 2014 | 1/1 –6/30/ 2014 | 4/1 –6/30/ 2013 | 1/1 –6/30/ 2013 |
Software and software-related service revenue (IFRS) | 3,478 | 6,533 | 3,318 | 6,220 |
Adjustment for deferred revenue write-down | 2 | 5 | 29 | 64 |
Software and software-related service revenue (Non-IFRS) | 3,480 | 6,538 | 3,347 | 6,284 |
Operating profit (IFRS) | 698 | 1,421 | 988 | 1,634 |
Revenue Adjustments (per above) | 2 | 5 | 29 | 64 |
Adjustment for discontinued activities | 0 | 1 | 0 | 0 |
Adjustment for Versata litigation | 289 | 289 | −33 | −32 |
Adjustment for acquisition-related charges | 131 | 261 | 145 | 283 |
Adjustment for stock-based compensation expenses | 76 | 124 | 39 | 109 |
Adjustment for restructuring | 39 | 54 | 17 | 31 |
Operating expense adjustments | 536 | 729 | 168 | 390 |
Operating profit adjustments | 538 | 735 | 198 | 454 |
Operating profit (Non-IFRS) | 1,236 | 2,155 | 1,186 | 2,088 |
Profit after tax (IFRS) | 556 | 1,090 | 724 | 1,244 |
Revenue adjustments (per above) | 2 | 5 | 29 | 64 |
Operating profit expense adjustments (per above) | 536 | 729 | 168 | 390 |
Adjustments pre-tax | 538 | 735 | 198 | 454 |
Taxes on adjustments | −156 | −221 | −72 | −159 |
Profit after tax (Non-IFRS) | 938 | 1,604 | 850 | 1,539 |
Due to rounding, numbers may not add up precisely. | ||||
F10 | ||||
REVENUE BY REGION | |||||||||||
The following tables present our IFRS and non-IFRS revenue by region based on customer location. The tables also present a reconciliation from our non-IFRS revenue (including our non-IFRS revenue at constant currency) to the respective most comparable IFRS revenue. | |||||||||||
Note: Our non-IFRS revenues are not prepared under a comprehensive set of accounting rules or principles. | |||||||||||
For the three months ended June 30 | |||||||||||
€ millions | 2014 | 2013 | Change in % | ||||||||
IFRS | Adj.* | Non-IFRS* | Currency Impact** | Non-IFRS Constant Currency** | IFRS | Adj.* | Non-IFRS* | IFRS | Non-IFRS* | Non-IFRS Constant Currency** | |
Cloud subscriptions and support revenue by region | |||||||||||
EMEA | 60 | 0 | 60 | 2 | 61 | 41 | 0 | 41 | 47 | 47 | 51 |
Americas | 160 | 1 | 162 | 9 | 170 | 103 | 24 | 127 | 55 | 27 | 34 |
APJ | 21 | 0 | 21 | 1 | 22 | 15 | 0 | 15 | 38 | 38 | 48 |
Cloud subscriptions and support revenue | 241 | 1 | 242 | 12 | 254 | 159 | 24 | 183 | 52 | 32 | 39 |
Software and software-related service revenue by region | |||||||||||
EMEA | 1,632 | 1 | 1,633 | 17 | 1,650 | 1,528 | 0 | 1,528 | 7 | 7 | 8 |
Americas | 1,290 | 2 | 1,292 | 77 | 1,369 | 1,263 | 29 | 1,292 | 2 | 0 | 6 |
APJ | 555 | 0 | 555 | 37 | 592 | 527 | 0 | 527 | 5 | 5 | 12 |
Software and software-related service revenue | 3,478 | 2 | 3,480 | 131 | 3,611 | 3,318 | 29 | 3,347 | 5 | 4 | 8 |
Total revenue by region | |||||||||||
Germany | 597 | 0 | 597 | 0 | 598 | 593 | 0 | 593 | 1 | 1 | 1 |
Rest of EMEA | 1,369 | 1 | 1,370 | 21 | 1,391 | 1,277 | 0 | 1,277 | 7 | 7 | 9 |
Total EMEA | 1,967 | 1 | 1,967 | 21 | 1,989 | 1,869 | 0 | 1,869 | 5 | 5 | 6 |
United States | 1,162 | 2 | 1,163 | 54 | 1,217 | 1,138 | 29 | 1,167 | 2 | 0 | 4 |
Rest of Americas | 384 | 0 | 384 | 40 | 424 | 431 | 0 | 431 | −11 | −11 | −2 |
Total Americas | 1,546 | 2 | 1,547 | 94 | 1,641 | 1,569 | 29 | 1,599 | −2 | −3 | 3 |
Japan | 134 | 0 | 134 | 11 | 146 | 147 | 0 | 147 | −8 | −8 | −1 |
Rest of APJ | 504 | 0 | 504 | 31 | 535 | 477 | 0 | 477 | 6 | 6 | 12 |
Total APJ | 638 | 0 | 638 | 42 | 681 | 623 | 0 | 623 | 2 | 2 | 9 |
Total revenue | 4,151 | 2 | 4,153 | 157 | 4,310 | 4,062 | 29 | 4,091 | 2 | 2 | 5 |
F11 | |||||||||||
For the six months ended June 30 | |||||||||||
€ millions | 2014 | 2013 | Change in % | ||||||||
IFRS | Adj.* | Non-IFRS* | Currency Impact** | Non-IFRS Constant Currency** | IFRS | Adj.* | Non-IFRS* | IFRS | Non-IFRS* | Non-IFRS Constant Currency** | |
Cloud subscriptions and support revenue by region | |||||||||||
EMEA | 114 | 0 | 114 | 3 | 117 | 81 | 0 | 81 | 41 | 41 | 45 |
Americas | 307 | 2 | 309 | 16 | 325 | 186 | 54 | 241 | 65 | 29 | 35 |
APJ | 40 | 0 | 40 | 3 | 42 | 29 | 0 | 29 | 36 | 36 | 46 |
Cloud subscriptions and support revenue | 460 | 2 | 463 | 22 | 485 | 296 | 54 | 350 | 55 | 32 | 38 |
Software and software-related service revenue by region | |||||||||||
EMEA | 3,071 | 2 | 3,072 | 41 | 3,113 | 2,878 | 0 | 2,878 | 7 | 7 | 8 |
Americas | 2,471 | 3 | 2,474 | 140 | 2,614 | 2,355 | 64 | 2,419 | 5 | 2 | 8 |
APJ | 992 | 0 | 992 | 81 | 1,073 | 987 | 0 | 987 | 1 | 1 | 9 |
Software and software-related service revenue | 6,533 | 5 | 6,538 | 261 | 6,800 | 6,220 | 64 | 6,284 | 5 | 4 | 8 |
Total revenue by region | |||||||||||
Germany | 1,132 | 0 | 1,132 | 1 | 1,133 | 1,121 | 0 | 1,121 | 1 | 1 | 1 |
Rest of EMEA | 2,602 | 1 | 2,604 | 51 | 2,655 | 2,427 | 0 | 2,427 | 7 | 7 | 9 |
Total EMEA | 3,734 | 2 | 3,736 | 51 | 3,787 | 3,547 | 0 | 3,547 | 5 | 5 | 7 |
United States | 2,225 | 3 | 2,228 | 98 | 2,326 | 2,123 | 64 | 2,187 | 5 | 2 | 6 |
Rest of Americas | 740 | 0 | 740 | 73 | 813 | 816 | 0 | 816 | −9 | −9 | 0 |
Total Americas | 2,965 | 3 | 2,968 | 171 | 3,139 | 2,939 | 64 | 3,003 | 1 | −1 | 5 |
Japan | 264 | 0 | 264 | 30 | 294 | 299 | 0 | 299 | −12 | −12 | −2 |
Rest of APJ | 886 | 0 | 886 | 65 | 950 | 877 | 0 | 877 | 1 | 1 | 8 |
Total APJ | 1,149 | 0 | 1,150 | 95 | 1,245 | 1,177 | 0 | 1,177 | −2 | −2 | 6 |
Total revenue | 7,849 | 5 | 7,854 | 318 | 8,172 | 7,663 | 64 | 7,727 | 2 | 2 | 6 |
* Adjustments in the revenue line items are for support revenue, cloud subscriptions and support revenue, and other similarly recurring revenues that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. | |||||||||||
** 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. | |||||||||||
F12 | |||||||||||
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SOURCE SAP SE
