WALLDORF, Germany, Jan. 20, 2015 /PRNewswire/ --
- Cloud Business Surges – Guidance Achieved as Non-IFRS Cloud Subscriptions and Support Revenue Jumped 72% in Fourth Quarter and Increased 45% in Full Year
- Cloud Subscriptions and Support Backlog Increased 94%, Exceeding €2.3 Billion at Year-End
- Strong HANA Momentum – More Than 5,800 HANA Customers and More Than 1,850 Suite on HANA Customers
- Software and Software-Related Service Revenue Guidance Achieved Despite the Accelerated Shift from Upfront to More Ratable Revenue
- Operating Profit Guidance Achieved While Significantly Expanding the Company's Cloud Delivery Capabilities
- Targeting €7.5 - €8.0 Billion in Cloud Subscriptions and Support Revenue and €26 - €28 Billion Total Revenue by 2020
SAP SE (NYSE: SAP) today announced its financial results for the fourth quarter and twelve months ended December 31, 2014.
BUSINESS HIGHLIGHTS IN THE FOURTH QUARTER AND FULL YEAR 2014
SAP delivered exceptionally strong growth in the cloud and continues to lead in this industry-wide transformation. Full year non-IFRS cloud subscriptions and support revenue increased 45% at actual and constant currencies to €1.10 billion1.
The company also showed a solid software and software-related service revenue performance despite the accelerated shift from upfront software revenue to more subscription-based cloud revenue. Non-IFRS software and software-related service revenue grew 7% at constant currencies (6% at actual currencies to €14.87 billion) achieving the full year target of 6% - 8% growth at constant currencies. Non-IFRS operating profit increased by 3% at constant currencies to €5.63 billion (3% at actual currencies to €5.64 billion), achieving the full year outlook of €5.6 - €5.8 billion at constant currencies.
"In 2014 we delivered on our Run Simple strategy to help our customers transform their businesses. SAP's strong growth is driven by the HANA platform, the broadest cloud portfolio and the largest business network in the world," said Bill McDermott, CEO of SAP. "SAP powers the clear path to growth for businesses in the 21st century: run real-time, run networked, run simple. We will continue to push relentlessly toward a much more predictable business model and are once again raising our cloud ambition to grow 7X from 2014 through 2020."
"We had exceptional growth in our cloud business and have significantly lifted the total of cloud backlog and non-IFRS deferred cloud revenue to more than €3 billion. This is committed business that will drive strong cloud growth in the future," said Luka Mucic, CFO of SAP. "We expect cloud subscriptions to exceed software license revenue in 2018. At that time SAP expects to reach a scale in its cloud business that will clear the way for accelerated operating profit expansion."
SAP is the fastest growing enterprise cloud company at scale2 with fourth quarter non-IFRS cloud subscriptions and support revenue increasing 72% year-over-year (59% at constant currencies). The annual total cloud revenue run rate now exceeds €1.7 billion3 or $2.0 billion4. Non-IFRS calculated cloud billings increased 104% (78% at constant currencies) in the fourth quarter5. Non-IFRS deferred cloud subscriptions and support revenue was €699 million as of December 31, 2014, a year-over-year increase of 56% (40% at constant currencies)6. The Company's cloud subscriptions and support backlog7 as of December 31, 2014 was €2.3 billion, a year-over-year increase of 94%.
SAP's acquisition of Concur in December 2014 propels the world's largest business network into the $1.2 trillion corporate travel and expense market. More than 1.7 million connected companies trade over $700 billion of frictionless commerce8 on this network – more than Amazon, eBay and Alibaba all combined.
SAP's intense focus on next-generation customer engagement is also fueling growth. Its hybris omni-channel e-commerce platform, combined with Cloud for Sales, once again saw strong revenue contribution in 2014 with triple-digit growth in software revenue and cloud subscriptions and support revenue combined.
SAP HANA, the platform for real-time business applications, had a phenomenal year and continues to be a major growth engine for SAP. The Company saw continued broad market adoption of SAP HANA across all industries and regions as customers recognize the compelling business benefits of SAP HANA. SAP now has more than 5,800 HANA customers and more than 1,850 customers for SAP Business Suite on HANA. SAP HANA is also evolving into a leading development platform.
In its services business, SAP is radically simplifing the way it engages with customers and delivers services to its customers: Under the new ONE Service approach, SAP provides one service portfolio, out of one global organization and under one contract. To execute on ONE Service SAP has combined all lines of services under one organizational umbrella.
Fourth Quarter 2014 Regional Revenue
SAP had another solid performance in EMEA, despite the macroeconomic conditions weighing on the business in Russia and Ukraine. Non-IFRS software and software-related service revenue increased 5% (5% at constant currencies) with a strong software revenue performance in the UK. Non-IFRS cloud subscriptions and support revenue in EMEA grew 85% (75% at constant currencies).
In the Americas, non-IFRS software and software-related service revenue increased 14% (6% at constant currencies), driven by strong growth in the United States. In Latin America, SAP continued to face a difficult macroeconomic and political environment. Non-IFRS cloud subscriptions and support revenue in the Americas increased 63% (50% at constant currencies).
In APJ, the Company achieved exceptional revenue growth in cloud and an overall solid revenue performance. Non-IFRS software and software-related service revenue grew 6% (2% at constant currencies). India delivered strong double-digit software revenue growth. Non-IFRS cloud subscriptions and support revenue grew 98% (87% at constant currencies) in APJ.
FINANCIAL RESULTS IN DETAIL
FINANCIAL HIGHLIGHTS – Fourth Quarter 2014 | |||||||
Fourth Quarter 20141) | |||||||
IFRS | Non- | ||||||
€ million, unless otherwise stated | Q4 2014 | Q4 2013 | % | Q4 2014 | Q4 2013 | % | % change |
Cloud subscriptions and support | 349 | 208 | 68 | 360 | 210 | 72 | 59 |
Software | 1,867 | 1,902 | –2 | 1,867 | 1,903 | –2 | –5 |
Support | 2,506 | 2,268 | 11 | 2,507 | 2,272 | 10 | 8 |
Software and support | 4,373 | 4,170 | 5 | 4,374 | 4,175 | 5 | 2 |
Software and software-related service revenue | 4,722 | 4,378 | 8 | 4,734 | 4,385 | 8 | 5 |
Total revenue | 5,458 | 5,106 | 7 | 5,469 | 5,113 | 7 | 4 |
Total operating expenses | –3,704 | –3,305 | 12 | –3,342 | –3,015 | 11 | 8 |
Operating profit | 1,754 | 1,802 | –3 | 2,127 | 2,098 | 1 | –2 |
Operating margin (%) | 32.1 | 35.3 | –3.2pp | 38.9 | 41.0 | –2.1pp | –2.3pp |
Profit after tax | 1,304 | 1,319 | –1 | 1,564 | 1,522 | 3 | |
Basic earnings per share (€) | 1.09 | 1.11 | –1 | 1.31 | 1.28 | 3 | |
Number of employees (FTE) | 74,406 | 66,572 | 12 | N/A | N/A | N/A | N/A |
1) All figures are unaudited. |
2) For a detailed description of SAP's non-IFRS measures see Explanation of Non-IFRS Measures online. For a breakdown of the individual adjustments see page F8 in the appendix to this press release. |
IFRS cloud subscriptions and support revenue was €349 million (2013: €208 million), an increase of 68%. Non-IFRS cloud subscriptions and support revenue was €360 million (2013: €210 million), an increase of 72% (59% at constant currencies). IFRS software and support revenue was €4.37 billion (2013: €4.17 billion), an increase of 5%. Non-IFRS software and support revenue was €4.37 billion (2013: €4.18 billion), an increase of 5% (2% at constant currencies). IFRS software and software-related service revenue was €4.72 billion (2013: €4.38 billion), an increase of 8%. Non-IFRS software and software-related service revenue was €4.73 billion (2013: €4.39 billion), an increase of 8% (5% at constant currencies). IFRS total revenue was €5.46 billion (2013: €5.11 billion), an increase of 7%. Non-IFRS total revenue was €5.47 billion (2013: €5.11 billion), an increase of 7% (4% at constant currencies).
IFRS operating profit was €1.75 billion (2013: €1.80 billion), a decrease of 3%. Non-IFRS operating profit was €2.13 billion (2013: €2.10 billion), an increase of 1% (a decrease of 2% at constant currencies). IFRS operating margin was 32.1% (2013: 35.3%), a decrease of 3.2 percentage points. Non-IFRS operating margin was 38.9% (2013: 41.0%), a decrease of 2.1 percentage points (2.3 percentage points at constant currencies).
IFRS profit after tax was €1.30 billion (2013: €1.32 billion), a decrease of 1%. Non-IFRS profit after tax was €1.56 billion (2013: €1.52 billion), an increase of 3%. IFRS basic earnings per share was €1.09 (2013: €1.11), a decrease of 1%. Non-IFRS basic earnings per share was €1.31 (2013: €1.28), an increase of 3%. The IFRS and non-IFRS effective tax rates in the fourth quarter of 2014 were 24.8% (2013: 25.7%) and 25.8% (2013: 26.6%), respectively.
FINANCIAL HIGHLIGHTS – Full Year 2014 | |||||||
Full Year 20141) | |||||||
IFRS | Non-IFRS2) | ||||||
€ million, unless otherwise stated | FY 2014 | FY 2013 | % | FY 2014 | FY 2013 | % | % change |
Cloud subscriptions and support | 1,087 | 696 | 56 | 1,101 | 757 | 45 | 45 |
Software | 4,399 | 4,516 | –3 | 4,399 | 4,518 | –3 | –3 |
Support | 9,368 | 8,738 | 7 | 9,373 | 8,756 | 7 | 8 |
Software and support | 13,767 | 13,254 | 4 | 13,773 | 13,275 | 4 | 5 |
Software and software-related service revenue | 14,855 | 13,950 | 6 | 14,874 | 14,032 | 6 | 7 |
Total revenue | 17,560 | 16,815 | 4 | 17,580 | 16,897 | 4 | 5 |
Total operating expenses | –13,229 | –12,336 | 7 | –11,942 | –11,415 | 5 | 6 |
Operating profit | 4,331 | 4,479 | –3 | 5,638 | 5,482 | 3 | 3 |
Operating margin (%) | 24.7 | 26.6 | –2.0pp | 32.1 | 32.4 | –0.4pp | –0.7pp |
Profit after tax | 3,275 | 3,325 | –1 | 4,178 | 3,998 | 4 | |
Basic earnings per share (€) | 2.74 | 2.79 | –2 | 3.50 | 3.35 | 4 | |
Number of employees (FTE) | 74,406 | 66,572 | 12 | N/A | N/A | N/A | N/A |
1) All figures are unaudited. |
2) For a detailed description of SAP's non-IFRS measures see Explanation of Non-IFRS Measures online. For a breakdown of the individual adjustments see page F8 in the appendix to this press release. |
IFRS cloud subscriptions and support revenue was €1.09 billion (2013: €696 million), an increase of 56%. Non-IFRS cloud subscriptions and support revenue was €1.10 billion (2013: €757 million), an increase of 45% (45% at constant currencies). IFRS software and support revenue was €13.77 billion (2013: €13.25 billion), an increase of 4%. Non-IFRS software and support revenue was €13.77 billion (2013: €13.28 billion), an increase of 4% (5% at constant currencies). IFRS software and software-related service revenue was €14.86 billion (2013: €13.95 billion), an increase of 6%. Non-IFRS software and software-related service revenue was €14.87 billion (2013: €14.03 billion), an increase of 6% (7% at constant currencies). IFRS total revenue was €17.56 billion (2013: €16.82 billion), an increase of 4%. Non-IFRS total revenue was €17.58 billion (2013: €16.90 billion), an increase of 4% (5% at constant currencies).
IFRS operating profit was €4.33 billion (2013: €4.48 billion), a decrease of 3%. Non-IFRS operating profit was €5.64 billion (2013: €5.48 billion), an increase of 3% (3% at constant currencies). IFRS operating margin was 24.7% (2013: 26.6%), a decrease of 2.0 percentage points. Non-IFRS operating margin was 32.1% (2013: 32.4%), a decrease of 0.4 (0.7 percentage points at constant currencies).
IFRS profit after tax was €3.28 billion (2013: €3.33 billion), a decrease of 1%. Non-IFRS profit after tax was €4.18 billion (2013: €4.00 billion), an increase of 4%. IFRS basic earnings per share was €2.74 (2013: €2.79), a decrease of 2%. Non-IFRS basic earnings per share was €3.50 (2013: €3.35), an increase of 4%. The IFRS and non-IFRS effective tax rates in 2014 were 24.8% (2013: 24.4%) and 26.2% (2013: 25.9%), respectively.
Cash Flow – Twelve Months 2014
Operating cash flow was €3.57 billion (2013: €3.83 billion), a decrease of 7% year-over-year. This was mainly due to payouts for litigation in the amount of €555 million. Free cash flow was €2.84 billion (2013: €3.27 billion), a decrease of 13% year-over-year. Free cash flow was 16% of total revenue (2013: 19%). At December 31, 2014, SAP had a total group liquidity of €3.42 billion (December 31, 2013: €2.84 billion), which includes cash and cash equivalents and short term investments. Net debt at December 31, 2014 was -€7.67 billion compared to -€1.47 billion at December 31, 2013.
ONE Service and Impact on SAP's Financial Reporting
As outlined above, SAP is implementing the ONE Service approach to provide holistic service offerings to its customers. This combination of services will be reflected in SAP's financial reporting by combining the respective revenue in one revenue line item of the income statement. Therefore, SAP will amend the structure of its income statement, starting with the first quarter of 2015 by presenting one revenue line item called 'Services' which includes premium support services, professional services and other services. Revenue from Enterprise Support and other standardised support offerings will continue to be reported in the 'Software support' line. The formerly presented subtotal 'Software and software-related services' (SSRS) which still included premium support revenue is replaced by the subtotal 'Cloud & software' which excludes premium support services.
This income statement modification does neither change total revenue nor the reported cloud subscriptions & support revenue and software revenue. The outlook the Company provides below for 2015 and beyond is based on this modified income statement format. For more information refer to the Company's webinar at www.sap.com/investor.
BUSINESS OUTLOOK 2015
The Company is providing the following 2015 outlook:
- Based on the strong momentum in SAP's cloud business the Company expects full year 2015 non-IFRS cloud subscriptions and support revenue to be in a range of €1.95 - €2.05 billion at constant currencies (2014: €1.10 billion). The upper end of this range represents a growth rate of 86% at constant currencies. Concur and Fieldglass are expected to contribute approximately 50 percentage points to this growth.
- The Company expects full year 2015 non-IFRS cloud & software revenue to increase by 8% - 10% at constant currencies (2014: €14.33 billion).
- The Company expects full-year 2015 non-IFRS operating profit to be in a range of €5.6 billion - €5.9 billion at constant currencies (2014: €5.64 billion).
This 2015 outlook replaces the previously communicated 2015 mid-term ambition.
While the Company's full-year 2015 business outlook is at constant currencies, actual currency reported figures are expected to continue to be impacted by currency exchange rate fluctuations. If exchange rates remain at the December 2014 closing rates for the rest of the year, the Company expects non-IFRS cloud & software revenue growth rate to experience a currency benefit of approximately 2 percentage points and non-IFRS operating profit growth rate at actual currencies to experience a currency benefit of approximately 1 percentage points for the full year 2015.
MID-TERM OUTLOOK
SAP expects to grow its more predictable revenue business while steadily increasing operating profit.
Looking beyond 2015, SAP is updating its 2017 ambition. SAP continues to expect fast growth in its cloud business with non-IFRS cloud subscriptions and support revenue reaching a range of €3.5 - €3.6 billion in 2017. Non-IFRS total revenue is expected to reach €21 - €22 billion in 2017. The Company expects non-IFRS operating profit in a range of €6.3 - €7.0 billion in 2017.
The changes to the 2017 goals reflect the impact from the Concur acquisition and anticipated faster customer adoption of SAP's private cloud offering. SAP also anticipates the fast-growing cloud business along with growth in support revenue will drive a higher share of more predictable revenue with the total of cloud subscriptions & support revenue and software support revenue reaching a range of 65% - 70% of total revenue in 2017.
By 2017 SAP's rapidly growing cloud subscriptions and support revenue is expected to be close to software license revenue and is expected to exceed software license revenue in 2018. At that time SAP expects to reach a scale in its cloud business that will clear the way for accelerated operating profit expansion.
SAP is also introducing high level 2020 ambitions with 2020 non-IFRS cloud subscriptions and support revenue expected to reach €7.5 - €8.0 billion. Total revenue is expected to be in a range of €26 - €28 billion and non-IFRS operating profit in a range of €8 - €9 billion. The share of more predictable revenue is expected to grow further with the total of cloud subscriptions & support revenue and software support revenue reaching a range of 70% - 75% of total revenue in 2020.
Additional Information
2014 revenue and profit figures include the full revenue and profit from hybris and the revenue and profit from Concur and Fieldglass since their acquisition dates of December 4 and May 2, respectively. The comparative numbers for 2013 do not include Concur or Fieldglass and hybris was included from August 1, 2013.
For a more detailed description of all of SAP's non-IFRS measures and their limitations as well as our constant currency and free cash flow figures see Explanation of Non-IFRS Measures online.
2014 Integrated Report and Annual Report
SAP's 2014 Integrated Report and Annual Report to Shareholders and 2014 Annual Report on Form 20-F are scheduled to be published on March 20, 2015, and will be available for download at www.sap.com/investor.
Webcast
SAP senior management will host a press conference in Walldorf today at 10:00 AM (CET) / 9:00 AM (GMT) / 4:00 AM (Eastern) / 1:00 AM (Pacific), followed by an investor conference at 2:00 PM (CET) / 1:00 PM (GMT) / 8:00 AM (Eastern) / 5:00 AM (Pacific). Both conferences will be web cast live on the Company's website at www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the full-year and quarterly results can be found at www.sap.com/investor.
SAP will also be hosting a Capital Markets Day and live webcast in New York on Tuesday, February 3, 2015.
About SAP
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 282,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission ("SEC"), including SAP's most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
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1 For the full year 2014, Fieldglass contributed €50 million and Concur contributed €45 million to SAP's Non-IFRS cloud subscriptions and support revenue at constant currencies, representing a 13 percentage point contribution to SAP's respective full year 2014 growth rate.
2 Compared to SAP's peer group companies with an enterprise software annual cloud revenue run rate above €1 billion.
3 The annual revenue run rate is the fourth quarter 2014 non-IFRS cloud subscriptions and support revenue (€360 million) plus non-IFRS cloud-related professional services and other service revenue (€69 million) multiplied by 4.
4 Translated into USD for reader's convenience based on $/€ exchange rate of $1.21/€1.00 at the end of the fourth quarter 2014.
5 The calculated billings numbers and respective growth rates reported herein update the preliminary numbers reported in the pre-release from January 12th.
6 Calculated billings is the total of a period's cloud subscriptions and support revenue and of the respective period's change in the deferred cloud subscriptions and support revenue balance. In the fourth quarter 2014 Fieldglass contributed €19 million and Concur contributed €45 million to SAP's Non-IFRS cloud subscriptions and support revenue at constant currencies. The contribution from Concur to non-IFRS deferred cloud subscriptions and support revenue at December 31st, 2014 was €65 million at constant currencies and €71 million at actual currencies (IFRS: €62 million). At December 4th, 2014, the closing of Concur, the balance was €61 million at actual currencies (IFRS: € 42 million).
7 Cloud subscriptions and support backlog represents expected future cloud subscriptions and support revenue that is contracted but not yet invoiced and thus not recorded in deferred revenue.
8 Network spend volume is the total value of purchase orders transacted on the Ariba, Concur and Fieldglass Networks in the trailing 12 months.
Appendix – Financial Information
FINANCIAL INFORMATION | ||
FOR THE FOURTH QUARTER 2014 | ||
(Condensed and Unaudited) | ||
Page | ||
Financial Statements (IFRS, Unaudited) | ||
Consolidated Income Statements | F1-F2 | |
Consolidated Statements of Financial Position | F3 | |
Consolidated Statements of Cash Flows | F4 | |
Supplementary Financial Information (Unaudited) | ||
Reconciliation from Non-IFRS Numbers to IFRS Numbers | F5-F8 | |
Explanation of Non-IFRS Adjustments | F8 | |
Calculated Cloud Billings | F9 | |
Revenue by Region | F10-F11 | |
Multi-Quarter Summary | F12-F13 | |
Financial Statements (IFRS, Unaudited) CONSOLIDATED INCOME STATEMENTS OF SAP GROUP – QUARTER | ||||
For the three months ended December 31 | ||||
€ millions, unless otherwise stated | 2014 | 2013 | Change in % | |
Cloud subscriptions and support | 349 | 208 | 68 | |
Software | 1,867 | 1,902 | –2 | |
Support | 2,506 | 2,268 | 11 | |
Software and support | 4,373 | 4,170 | 5 | |
Software and software-related service revenue | 4,722 | 4,378 | 8 | |
Professional services and other service revenue | 735 | 728 | 1 | |
Total revenue | 5,458 | 5,106 | 7 | |
Cost of software and software-related services | –852 | –759 | 12 | |
Cost of professional services and other services | –611 | –582 | 5 | |
Total cost of revenue | –1,463 | –1,341 | 9 | |
Gross profit | 3,995 | 3,765 | 6 | |
Research and development | –670 | –606 | 11 | |
Sales and marketing | –1,269 | –1,111 | 14 | |
General and administration | –279 | –230 | 21 | |
Restructuring | –29 | –23 | 27 | |
TomorrowNow and Versata litigation | –2 | –1 | >100 | |
Other operating income/expense, net | 8 | 7 | 21 | |
Total operating expenses | –3,704 | –3,305 | 12 | |
Operating profit | 1,754 | 1,802 | –3 | |
Other non-operating income/expense, net | 5 | –3 | <-100 | |
Finance income | 28 | 20 | 40 | |
Finance costs | –52 | –43 | 22 | |
Financial income, net | –24 | –22 | 7 | |
Profit before tax | 1,734 | 1,776 | –2 | |
Income tax TomorrowNow and Versata litigation | 1 | 0 | >100 | |
Other income tax expense | –431 | –458 | –6 | |
Income tax expense | –430 | –457 | –6 | |
Profit after tax | 1,304 | 1,319 | –1 | |
attributable to owners of parent | 1,304 | 1,319 | –1 | |
attributable to non-controlling interests | 0 | –1 | <-100 | |
Earnings per share, basic (in €)* | 1.09 | 1.11 | –1 | |
Earnings per share, diluted (in €)* | 1.09 | 1.10 | –1 | |
* For the three months ended December 31, 2014 and 2013, the weighted average number of shares was 1,195 million (diluted 1,198 million) and 1,194 million (diluted: 1,196 million), respectively (treasury stock excluded). | ||||
Due to rounding, numbers may not add up precisely. | ||||
F1 | ||||
CONSOLIDATED INCOME STATEMENTS OF SAP GROUP – TWELVE MONTHS | ||||
For the twelve months ended December 31 | ||||
€ millions, unless otherwise stated | 2014 | 2013 | Change in % | |
Cloud subscriptions and support | 1,087 | 696 | 56 | |
Software | 4,399 | 4,516 | –3 | |
Support | 9,368 | 8,738 | 7 | |
Software and support | 13,767 | 13,254 | 4 | |
Software and software-related service revenue | 14,855 | 13,950 | 6 | |
Professional services and other service revenue | 2,706 | 2,865 | –6 | |
Total revenue | 17,560 | 16,815 | 4 | |
Cost of software and software-related services | –2,894 | –2,629 | 10 | |
Cost of professional services and other services | –2,379 | –2,402 | –1 | |
Total cost of revenue | –5,272 | –5,031 | 5 | |
Gross profit | 12,288 | 11,784 | 4 | |
Research and development | –2,331 | –2,282 | 2 | |
Sales and marketing | –4,304 | –4,131 | 4 | |
General and administration | –891 | –866 | 3 | |
Restructuring | –126 | –70 | 80 | |
TomorrowNow and Versata litigation | –309 | 31 | <-100 | |
Other operating income/expense, net | 4 | 12 | –64 | |
Total operating expenses | –13,229 | –12,336 | 7 | |
Operating profit | 4,331 | 4,479 | –3 | |
Other non-operating income/expense, net | 49 | –17 | <-100 | |
Finance income | 127 | 115 | 11 | |
Finance costs | –152 | –181 | –16 | |
Financial income, net | –25 | –66 | –63 | |
Profit before tax | 4,356 | 4,396 | –1 | |
Income tax TomorrowNow and Versata litigation | 86 | –8 | <-100 | |
Other income tax expense | –1,166 | –1,063 | 10 | |
Income tax expense | –1,080 | –1,071 | 1 | |
Profit after tax | 3,275 | 3,325 | –1 | |
attributable to owners of parent | 3,275 | 3,326 | –2 | |
attributable to non-controlling interests | 0 | –1 | <-100 | |
Earnings per share, basic (in €)* | 2.74 | 2.79 | –2 | |
Earnings per share, diluted (in €)* | 2.74 | 2.78 | –2 | |
* For the twelve months ended December 31, 2014 and 2013, the weighted average number of shares was 1,195 million (diluted 1,197 million) and 1,193 million (diluted: 1,195 million), respectively (treasury stock excluded). | ||||
Due to rounding, numbers may not add up precisely. | ||||
F2 | ||||
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION OF SAP GROUP | |||
as at December 31, 2014 and December 31, 2013 | |||
€ millions | 2014 | 2013 | |
Cash and cash equivalents | 3,348 | 2,748 | |
Other financial assets | 658 | 251 | |
Trade and other receivables | 4,330 | 3,864 | |
Other non-financial assets | 433 | 346 | |
Tax assets | 173 | 142 | |
Total current assets | 8,942 | 7,351 | |
Goodwill | 20,831 | 13,690 | |
Intangible assets | 4,608 | 2,954 | |
Property, plant, and equipment | 2,102 | 1,820 | |
Other financial assets | 1,020 | 607 | |
Trade and other receivables | 100 | 98 | |
Other non-financial assets | 164 | 107 | |
Tax assets | 229 | 172 | |
Deferred tax assets | 378 | 292 | |
Total non-current assets | 29,432 | 19,739 | |
Total assets | 38,374 | 27,091 | |
as at December 31, 2014 and December 31, 2013 | |||
€ millions | 2014 | 2013 | |
Trade and other payables | 1,006 | 850 | |
Tax liabilities | 333 | 433 | |
Financial liabilities | 3,801 | 748 | |
Other non-financial liabilities | 2,797 | 2,562 | |
Provision TomorrowNow and Versata litigation | 1 | 223 | |
Other provisions | 149 | 123 | |
Provisions | 150 | 346 | |
Deferred income | 1,681 | 1,408 | |
Total current liabilities | 9,767 | 6,347 | |
Trade and other payables | 55 | 45 | |
Tax liabilities | 373 | 319 | |
Financial liabilities | 7,741 | 3,758 | |
Other non-financial liabilities | 231 | 257 | |
Provisions | 149 | 132 | |
Deferred tax liabilities | 386 | 110 | |
Deferred income | 78 | 74 | |
Total non-current liabilities | 9,013 | 4,695 | |
Total liabilities | 18,780 | 11,043 | |
Issued capital | 1,229 | 1,229 | |
Share premium | 614 | 551 | |
Retained earnings | 18,311 | 16,258 | |
Other components of equity | 570 | –718 | |
Treasury shares | –1,224 | –1,280 | |
Equity attributable to owners of parent | 19,500 | 16,040 | |
Non-controlling interests | 94 | 8 | |
Total equity | 19,594 | 16,048 | |
Total equity and liabilities | 38,374 | 27,091 | |
Due to rounding, numbers may not add up precisely. | |||
F3 | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS OF SAP GROUP | ||
For the twelve months ended December 31 | ||
€ millions | 2014 | 2013 |
Profit after tax | 3,275 | 3,325 |
Adjustments to reconcile profit after taxes to net cash provided by operating activities: | ||
Depreciation and amortization | 1,010 | 951 |
Income tax expense | 1,080 | 1,071 |
Financial income, net | 25 | 66 |
Decrease/increase in sales and bad debt allowances on trade receivables | 47 | 42 |
Other adjustments for non-cash items | 85 | 57 |
Decrease/increase in trade and other receivables | –286 | –110 |
Decrease/increase in other assets | –344 | –131 |
Decrease/increase in trade payables, provisions, and other liabilities | 648 | –176 |
Decrease/increase in deferred income | 16 | 125 |
Cash outflows due to TomorrowNow and Versata litigation | –555 | –1 |
Interest paid | –130 | –159 |
Interest received | 59 | 67 |
Income taxes paid, net of refunds | –1,356 | –1,295 |
Net cash flows from operating activities | 3,574 | 3,832 |
Business combinations, net of cash and cash equivalents acquired | –6,354 | –1,160 |
Cash payments for derivative financial instruments related to business combinations | –111 | 0 |
Total cash outflows for business combinations, net of cash and cash equivalents acquired | –6,465 | –1,160 |
Purchase of intangible assets and property, plant, and equipment | –737 | –566 |
Proceeds from sales of intangible assets or property, plant, and equipment | 46 | 55 |
Purchase of equity or debt instruments of other entities | –891 | –1,531 |
Proceeds from sales of equity or debt instruments of other entities | 833 | 1,421 |
Net cash flows from investing activities | –7,214 | –1,781 |
Dividends paid | –1,194 | –1,013 |
Proceeds from reissuance of treasury shares | 51 | 49 |
Proceeds from borrowings | 7,581 | 1,000 |
Repayments of borrowings | –2,219 | –1,625 |
Net cash flows from financing activities | 4,219 | –1,589 |
Effect of foreign currency rates on cash and cash equivalents | 21 | –191 |
Net decrease/increase in cash and cash equivalents | 600 | 271 |
Cash and cash equivalents at the beginning of the period | 2,748 | 2,477 |
Cash and cash equivalents at the end of the period | 3,348 | 2,748 |
Due to rounding, numbers may not add up precisely. | ||
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 December 31 | |||||||||||
€ millions, unless otherwise stated | 2014 | 2013 | |||||||||
IFRS | Adj.* | Non-IFRS* | Currency Impact** | Non-IFRS Constant Currency** | IFRS | Adj.* | Non-IFRS* | IFRS | Non-IFRS* | Non-IFRS Constant Currency** | |
Revenue Numbers | |||||||||||
Cloud subscriptions and support | 349 | 10 | 360 | –26 | 334 | 208 | 1 | 210 | 68 | 72 | 59 |
Software | 1,867 | 0 | 1,867 | –59 | 1,808 | 1,902 | 0 | 1,903 | –2 | –2 | –5 |
Support | 2,506 | 1 | 2,507 | –64 | 2,444 | 2,268 | 5 | 2,272 | 11 | 10 | 8 |
Software and support | 4,373 | 1 | 4,374 | –123 | 4,251 | 4,170 | 5 | 4,175 | 5 | 5 | 2 |
Software and software-related service revenue | 4,722 | 12 | 4,734 | –149 | 4,586 | 4,378 | 6 | 4,385 | 8 | 8 | 5 |
Professional services and other service revenue | 735 | 0 | 735 | –24 | 712 | 728 | 0 | 728 | 1 | 1 | –2 |
thereof cloud-related | 69 | 0 | 69 | –3 | 66 | 45 | 0 | 45 | 54 | 54 | 47 |
Total revenue | 5,458 | 12 | 5,469 | –172 | 5,297 | 5,106 | 6 | 5,113 | 7 | 7 | 4 |
Cloud subscriptions and support | 349 | 10 | 360 | –26 | 334 | 208 | 1 | 210 | 68 | 72 | 59 |
Cloud-related professional services revenue | 69 | 0 | 69 | –3 | 66 | 45 | 0 | 45 | 54 | 54 | 47 |
Cloud revenue | 418 | 10 | 429 | –29 | 400 | 253 | 1 | 254 | 65 | 69 | 57 |
Operating Expense Numbers | |||||||||||
Cost of software and software-related services | –852 | 105 | –747 | –759 | 98 | –661 | 12 | 13 | |||
thereof cloud | –161 | 30 | –131 | –83 | 18 | –66 | 93 | 99 | |||
Cost of professional services and other services | –611 | 47 | –564 | –582 | 38 | –543 | 5 | 4 | |||
Total cost of revenue | –1,463 | 152 | –1,311 | –1,341 | 137 | –1,204 | 9 | 9 | |||
Gross profit | 3,995 | 164 | 4,158 | 3,765 | 143 | 3,909 | 6 | 6 | |||
Research and development | –670 | 55 | –615 | –606 | 51 | –555 | 11 | 11 | |||
Sales and marketing | –1,269 | 69 | –1,201 | –1,111 | 63 | –1,047 | 14 | 15 | |||
General and administration | –279 | 55 | –224 | –230 | 15 | –215 | 21 | 4 | |||
Restructuring | –29 | 29 | 0 | –23 | 23 | 0 | 27 | 0 | |||
TomorrowNow and Versata litigation | –2 | 2 | 0 | –1 | 1 | 0 | >100 | 0 | |||
Other operating income/expense, net | 8 | 0 | 8 | 7 | 0 | 7 | 21 | 21 | |||
Total operating expenses | –3,704 | 362 | –3,342 | 98 | –3,244 | –3,305 | 290 | –3,015 | 12 | 11 | 8 |
F5 | |||||||||||
For the three months ended December 31 | |||||||||||
€ millions, unless otherwise stated | 2014 | 2013 | Change in % | ||||||||
IFRS | Adj.* | Non-IFRS* | Currency Impact** | Non-IFRS Constant Currency** | IFRS | Adj.* | Non-IFRS* | IFRS | Non-IFRS* | Non-IFRS Constant Currency** | |
Profit Numbers | |||||||||||
Operating profit | 1,754 | 374 | 2,127 | –74 | 2,053 | 1,802 | 296 | 2,098 | –3 | 1 | –2 |
Other non-operating income/expense, net | 5 | 0 | 5 | –3 | 0 | –3 | <-100 | <-100 | |||
Finance income | 28 | 0 | 28 | 20 | 0 | 20 | 40 | 40 | |||
Finance costs | –52 | 0 | –52 | –43 | 0 | –43 | 22 | 22 | |||
Financial income, net | –24 | 0 | –24 | –22 | 0 | –22 | 7 | 7 | |||
Profit before tax | 1,734 | 374 | 2,108 | 1,776 | 296 | 2,072 | –2 | 2 | |||
Income tax TomorrowNow and Versata litigation | 1 | –1 | 0 | 0 | 0 | 0 | >100 | 0 | |||
Other income tax expense | –431 | –113 | –544 | –458 | –93 | –550 | –6 | –1 | |||
Income tax expense | –430 | –114 | –544 | –457 | –93 | –550 | –6 | –1 | |||
Profit after tax | 1,304 | 260 | 1,564 | 1,319 | 203 | 1,522 | –1 | 3 | |||
attributable to owners of parent | 1,304 | 260 | 1,564 | 1,319 | 203 | 1,523 | –1 | 3 | |||
attributable to non-controlling interests | 0 | 0 | 0 | –1 | 0 | –1 | <-100 | <-100 | |||
Key Ratios | |||||||||||
Operating margin (in %) | 32.1 | 38.9 | 38.8 | 35.3 | 41.0 | –3.2pp | –2.1pp | –2.3pp | |||
Effective tax rate (in %) | 24.8 | 25.8 | 25.7 | 26.6 | –1.0pp | –0.8pp | |||||
Earnings per share, basic (in €) | 1.09 | 1.31 | 1.11 | 1.28 | –1 | 3 | |||||
F6 | |||||||||||
For the twelve months ended December 31 | |||||||||||
€ millions, unless otherwise stated | 2014 | 2013 | |||||||||
IFRS | Adj.* | Non-IFRS* | Currency Impact** | Non-IFRS Constant Currency** | IFRS | Adj.* | Non-IFRS* | IFRS | Non-IFRS* | Non-IFRS Constant Currency** | |
Revenue Numbers | |||||||||||
Cloud subscriptions and support | 1,087 | 14 | 1,101 | –3 | 1,098 | 696 | 61 | 757 | 56 | 45 | 45 |
Software | 4,399 | 0 | 4,399 | 0 | 4,399 | 4,516 | 2 | 4,518 | –3 | –3 | –3 |
Support | 9,368 | 5 | 9,373 | 114 | 9,487 | 8,738 | 19 | 8,756 | 7 | 7 | 8 |
Software and support | 13,767 | 5 | 13,773 | 113 | 13,886 | 13,254 | 21 | 13,275 | 4 | 4 | 5 |
Software and software-related service revenue | 14,855 | 19 | 14,874 | 110 | 14,984 | 13,950 | 82 | 14,032 | 6 | 6 | 7 |
Professional services and other service revenue | 2,706 | 0 | 2,706 | 32 | 2,738 | 2,865 | 0 | 2,865 | –6 | –6 | –4 |
thereof cloud-related | 222 | 0 | 222 | 1 | 222 | 170 | 0 | 170 | 30 | 30 | 31 |
Total revenue | 17,560 | 19 | 17,580 | 142 | 17,722 | 16,815 | 82 | 16,897 | 4 | 4 | 5 |
Cloud subscriptions and support | 1,087 | 14 | 1,101 | –3 | 1,098 | 696 | 61 | 757 | 56 | 45 | 45 |
Cloud-related professional services revenue | 222 | 0 | 222 | 1 | 222 | 170 | 0 | 170 | 30 | 30 | 31 |
Cloud revenue | 1,309 | 14 | 1,323 | –3 | 1,320 | 866 | 61 | 927 | 51 | 43 | 42 |
Operating Expense Numbers | |||||||||||
Cost of software and software-related services | –2,894 | 350 | –2,543 | –2,629 | 364 | –2,265 | 10 | 12 | |||
thereof cloud | –481 | 88 | –393 | –314 | 97 | –218 | 53 | 80 | |||
Cost of professional services and other services | –2,379 | 121 | –2,258 | –2,402 | 123 | –2,278 | –1 | –1 | |||
Total cost of revenue | –5,272 | 471 | –4,801 | –5,031 | 487 | –4,543 | 5 | 6 | |||
Gross profit | 12,288 | 490 | 12,778 | 11,784 | 570 | 12,354 | 4 | 3 | |||
Research and development | –2,331 | 127 | –2,204 | –2,282 | 120 | –2,162 | 2 | 2 | |||
Sales and marketing | –4,304 | 169 | –4,134 | –4,131 | 205 | –3,926 | 4 | 5 | |||
General and administration | –891 | 85 | –806 | –866 | 70 | –796 | 3 | 1 | |||
Restructuring | –126 | 126 | 0 | –70 | 70 | 0 | 80 | 0 | |||
TomorrowNow and Versata litigation | –309 | 309 | 0 | 31 | –31 | 0 | <-100 | 0 | |||
Other operating income/expense, net | 4 | 0 | 4 | 12 | 0 | 12 | –64 | –64 | |||
Total operating expenses | –13,229 | 1,288 | –11,942 | –152 | –12,093 | –12,336 | 921 | –11,415 | 7 | 5 | 6 |
F7 | |||||||||||
For the twelve months ended December 31 | |||||||||||
€ millions, unless otherwise stated | 2014 | 2013 | Change in % | ||||||||
IFRS | Adj.* | Non-IFRS* | Currency Impact** | Non-IFRS Constant Currency** | IFRS | Adj.* | Non-IFRS* | IFRS | Non-IFRS* | Non-IFRS Constant Currency** | |
Profit Numbers | |||||||||||
Operating profit | 4,331 | 1,307 | 5,638 | –9 | 5,629 | 4,479 | 1,003 | 5,482 | –3 | 3 | 3 |
Other non-operating income/expense, net | 49 | 0 | 49 | –17 | 0 | –17 | <-100 | <-100 | |||
Finance income | 127 | 0 | 127 | 115 | 0 | 115 | 11 | 11 | |||
Finance costs | –152 | 0 | –152 | –181 | 0 | –181 | –16 | –16 | |||
Financial income, net | –25 | 0 | –25 | –66 | 0 | –66 | –63 | –63 | |||
Profit before tax | 4,356 | 1,307 | 5,662 | 4,396 | 1,003 | 5,399 | –1 | 5 | |||
Income tax TomorrowNow and Versata litigation | 86 | –86 | 0 | –8 | 8 | 0 | <-100 | 0 | |||
Other income tax expense | –1,166 | –318 | –1,485 | –1,063 | –338 | –1,401 | 10 | 6 | |||
Income tax expense | –1,080 | –405 | –1,485 | –1,071 | –330 | –1,401 | 1 | 6 | |||
Profit after tax | 3,275 | 902 | 4,178 | 3,325 | 674 | 3,998 | –1 | 4 | |||
attributable to owners of parent | 3,275 | 902 | 4,177 | 3,326 | 674 | 3,999 | –2 | 4 | |||
attributable to non-controlling interests | 0 | 0 | 0 | –1 | 0 | –1 | <-100 | <-100 | |||
Key Ratios | |||||||||||
Operating margin (in %) | 24.7 | 32.1 | 31.8 | 26.6 | 32.4 | –2.0pp | –0.4pp | –0.7pp | |||
Effective tax rate (in %) | 24.8 | 26.2 | 24.4 | 25.9 | 0.4pp | 0.3pp | |||||
Earnings per share, basic (in €) | 2.74 | 3.50 | 2.79 | 3.35 | –2 | 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 payment expenses, restructuring expenses, as well as the TomorrowNow and Versata litigation expenses. | |||||||||||
** Constant currency revenue and operating income figures are calculated by translating revenue and operating income of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS number of the previous year's respective period. | |||||||||||
For a more detailed description of these adjustments and their limitations as well as our constant currency figures, see our Web site www.sap.com/corporate-en/investors/newsandreports/reporting-framework.epx under "Non-IFRS Measures and Estimates". | |||||||||||
Due to rounding, numbers may not add up precisely. | |||||||||||
EXPLANATION OF NON-IFRS ADJUSTMENTS | ||||
€ millions, unless otherwise stated | Q4 2014 | 1/1– 12/31/2014 | Q4 2013 | 1/1– 12/31/2013 |
Operating profit (IFRS) | 1,754 | 4,331 | 1,802 | 4,479 |
Revenue adjustments | 12 | 19 | 6 | 82 |
Adjustment for acquisition-related charges | 160 | 562 | 130 | 555 |
Adjustment for share-based payment expenses | 171 | 290 | 135 | 327 |
Adjustment for restructuring | 29 | 126 | 23 | 70 |
Adjustment for TomorrowNow and Versata litigation | 2 | 309 | 1 | –31 |
Operating expense adjustments | 362 | 1,288 | 290 | 921 |
Operating profit adjustments | 374 | 1,307 | 296 | 1,003 |
Operating profit (Non-IFRS) | 2,127 | 5,638 | 2,098 | 5,482 |
Due to rounding, numbers may not add up precisely. | ||||
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 December 31 | ||||||||||
€ 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 | 349 | 10 | 360 | –26 | 334 | 208 | 1 | 210 | 0 | 210 |
Closing balance deferred cloud subscriptions and support | 690 | 10 | 699 | –62 | 637 | 443 | 4 | 447 | 9 | 457 |
Opening balance deferred cloud subscriptions and support | 498 | 0 | 498 | –32 | 466 | 376 | 6 | 382 | 0 | 382 |
Change in deferred cloud subscriptions and support | 192 | 10 | 202 | –31 | 171 | 68 | –2 | 66 | 9 | 75 |
Calculated cloud billings | 542 | 20 | 562 | –56 | 505 | 276 | 0 | 276 | 9 | 285 |
Year-over-year changes (2014 vs. 2013, in %) | 96% | 104% | 78% | |||||||
* Adjustments in the revenue and deferred revenue line items are for cloud subscriptions and support revenue, and other similarly recurring revenues that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. | ||||||||||
* * Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency deferred revenue balances are calculated by translating the current period's opening and closing deferred revenue balances as well as the comparative period's closing deferred revenue balance using the opening exchange rates of the comparative period. | ||||||||||
For a more detailed description of these adjustments and their limitations as well as our constant currency figures, see our Web site www.sap.com/corporate-en/investors/newsandreports/reporting-framework.epx under "Non-IFRS Measures and Estimates". | ||||||||||
Due to rounding, numbers may not add up precisely. | ||||||||||
F9 | ||||||||||
REVENUE BY REGION | |||||||||||
The following tables present our IFRS and non-IFRS revenue by region based on customer location. The tables also present a reconciliation from our non-IFRS revenue (including our non-IFRS revenue at constant currency) to the respective most comparable IFRS revenue. | |||||||||||
Note: Our non-IFRS revenues are not prepared under a comprehensive set of accounting rules or principles. | |||||||||||
For the three months ended December 31 | |||||||||||
€ millions | 2014 | 2013 | Change in % | ||||||||
IFRS | Adj.* | Non-IFRS* | Currency Impact** | Non-IFRS Constant Currency** | IFRS | Adj.* | Non-IFRS* | IFRS | Non-IFRS* | Non-IFRS Constant Currency** | |
Cloud subscriptions and support revenue by region | |||||||||||
EMEA | 92 | 1 | 93 | –5 | 88 | 50 | 0 | 50 | 84 | 85 | 75 |
Americas | 222 | 9 | 231 | –19 | 212 | 140 | 1 | 141 | 58 | 63 | 50 |
APJ | 36 | 0 | 36 | –2 | 34 | 18 | 0 | 18 | 97 | 98 | 87 |
Cloud subscriptions and support revenue | 349 | 10 | 360 | –26 | 334 | 208 | 1 | 210 | 68 | 72 | 59 |
Software and software-related service revenue by region | |||||||||||
EMEA | 2,290 | 2 | 2,292 | 4 | 2,296 | 2,189 | 3 | 2,193 | 5 | 5 | 5 |
Americas | 1,682 | 9 | 1,691 | –126 | 1,565 | 1,478 | 3 | 1,481 | 14 | 14 | 6 |
APJ | 751 | 0 | 751 | –27 | 724 | 711 | 0 | 711 | 6 | 6 | 2 |
Software and software-related service revenue | 4,722 | 12 | 4,734 | –149 | 4,586 | 4,378 | 6 | 4,385 | 8 | 8 | 5 |
Total revenue by region | |||||||||||
Germany | 799 | 0 | 799 | –1 | 799 | 793 | 1 | 794 | 1 | 1 | 1 |
Rest of EMEA | 1,869 | 2 | 1,871 | 3 | 1,874 | 1,758 | 3 | 1,761 | 6 | 6 | 6 |
Total EMEA | 2,668 | 2 | 2,671 | 2 | 2,672 | 2,551 | 3 | 2,555 | 5 | 5 | 5 |
United States | 1,479 | 9 | 1,488 | –127 | 1,361 | 1,264 | 2 | 1,266 | 17 | 18 | 7 |
Rest of Americas | 460 | 0 | 460 | –16 | 444 | 490 | 1 | 491 | –6 | –6 | –10 |
Total Americas | 1,939 | 9 | 1,948 | –144 | 1,805 | 1,754 | 3 | 1,757 | 11 | 11 | 3 |
Japan | 164 | 0 | 164 | 7 | 171 | 173 | 0 | 173 | –5 | –5 | –1 |
Rest of APJ | 687 | 0 | 687 | –37 | 650 | 628 | 0 | 628 | 9 | 9 | 3 |
Total APJ | 850 | 0 | 851 | –30 | 820 | 801 | 0 | 801 | 6 | 6 | 2 |
Total revenue | 5,458 | 12 | 5,469 | –172 | 5,297 | 5,106 | 6 | 5,113 | 7 | 7 | 4 |
F10 | |||||||||||
For the twelve months ended December 31 | |||||||||||
€ millions | 2014 | 2013 | Change in % | ||||||||
IFRS | Adj.* | Non-IFRS* | Currency Impact** | Non-IFRS Constant Currency** | IFRS | Adj.* | Non-IFRS* | IFRS | Non-IFRS* | Non-IFRS Constant Currency** | |
Cloud subscriptions and support revenue by region | |||||||||||
EMEA | 277 | 1 | 278 | –1 | 277 | 176 | 0 | 176 | 58 | 58 | 57 |
Americas | 709 | 12 | 721 | –3 | 719 | 457 | 61 | 517 | 55 | 39 | 39 |
APJ | 101 | 0 | 101 | 1 | 102 | 64 | 0 | 64 | 59 | 59 | 60 |
Cloud subscriptions and support revenue | 1,087 | 14 | 1,101 | –3 | 1,098 | 696 | 61 | 757 | 56 | 45 | 45 |
Software and software-related service revenue by region | |||||||||||
EMEA | 7,028 | 5 | 7,034 | 45 | 7,079 | 6,616 | 6 | 6,622 | 6 | 6 | 7 |
Americas | 5,489 | 14 | 5,503 | 12 | 5,515 | 5,097 | 76 | 5,173 | 8 | 6 | 7 |
APJ | 2,337 | 0 | 2,337 | 53 | 2,390 | 2,237 | 0 | 2,237 | 4 | 4 | 7 |
Software and software-related service revenue | 14,855 | 19 | 14,874 | 110 | 14,984 | 13,950 | 82 | 14,032 | 6 | 6 | 7 |
Total revenue by region | |||||||||||
Germany | 2,570 | 1 | 2,571 | –1 | 2,571 | 2,513 | 2 | 2,514 | 2 | 2 | 2 |
Rest of EMEA | 5,813 | 4 | 5,817 | 53 | 5,870 | 5,462 | 5 | 5,467 | 6 | 6 | 7 |
Total EMEA | 8,383 | 5 | 8,389 | 52 | 8,441 | 7,975 | 6 | 7,981 | 5 | 5 | 6 |
United States | 4,898 | 13 | 4,911 | –35 | 4,875 | 4,487 | 73 | 4,561 | 9 | 8 | 7 |
Rest of Americas | 1,591 | 0 | 1,592 | 61 | 1,653 | 1,746 | 2 | 1,748 | –9 | –9 | –5 |
Total Americas | 6,489 | 14 | 6,503 | 26 | 6,528 | 6,233 | 76 | 6,309 | 4 | 3 | 3 |
Japan | 600 | 0 | 600 | 46 | 646 | 631 | 0 | 631 | –5 | –5 | 2 |
Rest of APJ | 2,088 | 0 | 2,088 | 18 | 2,106 | 1,975 | 0 | 1,976 | 6 | 6 | 7 |
Total APJ | 2,688 | 0 | 2,688 | 64 | 2,753 | 2,606 | 0 | 2,607 | 3 | 3 | 6 |
Total revenue | 17,560 | 19 | 17,580 | 142 | 17,722 | 16,815 | 82 | 16,897 | 4 | 4 | 5 |
* Adjustments in the revenue line items are for support revenue, cloud subscriptions and support revenue, and other similarly recurring revenues that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. | |||||||||||
** Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS number of the previous year's respective period. | |||||||||||
For a more detailed description of these adjustments and their limitations as well as our constant currency figures, see our Web site www.sap.com/corporate-en/investors/newsandreports/reporting-framework.epx under "Non-IFRS Measures and Estimates". | |||||||||||
Due to rounding, numbers may not add up precisely. | |||||||||||
F11 | |||||||||||
MULTI-QUARTER SUMMARY (IFRS AND NON-IFRS) | ||||||||||
€ millions, unless otherwise stated | Q1 2013 | Q2 2013 | Q3 2013 | Q4 2013 | TY 2013 | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | TY 2014 |
Cloud subscriptions and support (IFRS) | 137 | 159 | 191 | 208 | 696 | 219 | 241 | 277 | 349 | 1,087 |
Revenue adjustment* | 30 | 24 | 5 | 1 | 61 | 1 | 1 | 1 | 10 | 14 |
Cloud subscriptions and support (non-IFRS) | 167 | 183 | 197 | 210 | 757 | 221 | 242 | 278 | 360 | 1,101 |
Software (IFRS) | 657 | 982 | 975 | 1,902 | 4,516 | 623 | 957 | 951 | 1,867 | 4,399 |
Revenue adjustment* | 0 | 0 | 2 | 0 | 2 | 0 | 0 | 0 | 0 | 0 |
Software (non-IFRS) | 657 | 982 | 977 | 1,903 | 4,518 | 623 | 957 | 952 | 1,867 | 4,399 |
Support (IFRS) | 2,109 | 2,177 | 2,184 | 2,268 | 8,738 | 2,213 | 2,279 | 2,370 | 2,506 | 9,368 |
Revenue adjustment* | 4 | 5 | 5 | 5 | 19 | 2 | 1 | 1 | 1 | 5 |
Support (non-IFRS) | 2,113 | 2,182 | 2,189 | 2,272 | 8,756 | 2,214 | 2,280 | 2,371 | 2,507 | 9,373 |
Software and support (IFRS) | 2,765 | 3,159 | 3,159 | 4,170 | 13,254 | 2,836 | 3,237 | 3,322 | 4,373 | 13,767 |
Revenue adjustment* | 4 | 5 | 7 | 5 | 21 | 2 | 1 | 1 | 1 | 5 |
Software and support (non-IFRS) | 2,770 | 3,164 | 3,166 | 4,175 | 13,275 | 2,838 | 3,238 | 3,323 | 4,374 | 13,773 |
Software and software-related service revenue (IFRS) | 2,903 | 3,318 | 3,351 | 4,378 | 13,950 | 3,055 | 3,478 | 3,599 | 4,722 | 14,855 |
Revenue adjustment* | 35 | 29 | 12 | 6 | 82 | 3 | 2 | 2 | 12 | 19 |
Software and software-related service revenue (non-IFRS) | 2,937 | 3,347 | 3,363 | 4,385 | 14,032 | 3,058 | 3,480 | 3,601 | 4,734 | 14,874 |
Consulting | 557 | 580 | 553 | 553 | 2,242 | 508 | 520 | 512 | 555 | 2,095 |
Other services | 142 | 165 | 142 | 175 | 623 | 134 | 153 | 143 | 180 | 611 |
Professional services and other service revenue (IFRS = non-IFRS) | 698 | 744 | 695 | 728 | 2,865 | 643 | 673 | 655 | 735 | 2,706 |
Total revenue (IFRS) | 3,601 | 4,062 | 4,045 | 5,106 | 16,815 | 3,698 | 4,151 | 4,254 | 5,458 | 17,560 |
Revenue adjustment* | 35 | 29 | 12 | 6 | 82 | 3 | 2 | 2 | 12 | 19 |
Total revenue (non-IFRS) | 3,636 | 4,091 | 4,057 | 5,113 | 16,897 | 3,701 | 4,153 | 4,256 | 5,469 | 17,580 |
Operating profit (IFRS) | 646 | 988 | 1,043 | 1,802 | 4,479 | 723 | 698 | 1,157 | 1,754 | 4,331 |
Revenue adjustment* | 35 | 29 | 12 | 6 | 82 | 3 | 2 | 2 | 12 | 19 |
Expense adjustment* | 222 | 168 | 242 | 290 | 921 | 193 | 536 | 196 | 362 | 1,288 |
Operating profit (non-IFRS) | 902 | 1,186 | 1,296 | 2,098 | 5,482 | 919 | 1,236 | 1,355 | 2,127 | 5,638 |
Operating margin (IFRS, in %) | 17.9 | 24.3 | 25.8 | 35.3 | 26.6 | 19.5 | 16.8 | 27.2 | 32.1 | 24.7 |
Operating margin (non-IFRS, in %) | 24.8 | 29.0 | 32.0 | 41.0 | 32.4 | 24.8 | 29.8 | 31.8 | 38.9 | 32.1 |
Effective tax rate (IFRS, in %) | 16.3 | 24.8 | 26.4 | 25.7 | 24.4 | 24.1 | 22.6 | 26.5 | 24.8 | 24.8 |
Effective tax rate (non-IFRS, in %) | 21.4 | 26.8 | 27.6 | 26.6 | 25.9 | 25.9 | 25.4 | 27.7 | 25.8 | 26.2 |
Earnings per share, basic (IFRS, in €) | 0.44 | 0.61 | 0.64 | 1.11 | 2.79 | 0.45 | 0.47 | 0.74 | 1.09 | 2.74 |
Earnings per share, basic (non-IFRS, in €) | 0.58 | 0.71 | 0.78 | 1.28 | 3.35 | 0.56 | 0.79 | 0.84 | 1.31 | 3.50 |
F12 | ||||||||||
€ millions, unless otherwise stated | Q1 2013 | Q2 2013 | Q3 2013 | Q4 2013 | TY 2013 | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | TY 2014 |
Net cash flows from operating activities | 2,162 | 320 | 558 | 792 | 3,832 | 2,352 | 223 | 507 | 491 | 3,574 |
Purchases of intangible assets, and property, plant, and equipment | –113 | –152 | –136 | –165 | –566 | –130 | –174 | –168 | –265 | –737 |
Free cash flow | 2,049 | 168 | 422 | 627 | 3,266 | 2,222 | 49 | 339 | 226 | 2,837 |
Deferred cloud subscriptions and support revenue (IFRS, quarter end) | 344 | 354 | 376 | 443 | 443 | 451 | 445 | 498 | 690 | 690 |
Revenue adjustment* | 33 | 7 | 6 | 4 | 4 | 3 | 3 | 0 | 10 | 10 |
Deferred cloud subscriptions and support revenue (non-IFRS, quarter end) | 377 | 361 | 382 | 447 | 447 | 454 | 448 | 498 | 699 | 699 |
Days' sales outstanding (DSO, in days)** | 61 | 62 | 62 | 62 | 62 | 63 | 64 | 65 | 65 | 65 |
Headcount (quarter end)*** | 64,598 | 64,937 | 66,061 | 66,572 | 66,572 | 66,750 | 67,651 | 68,835 | 74,406 | 74,406 |
Employee retention (in %, rolling 12 months) | 93.9 | 93.6 | 93.6 | 93.5 | 93.5 | 93.4 | 93.5 | 93.3 | 93.5 | 93.5 |
Women in management (in %, quarter end) | 21.4 | 21.4 | 21.0 | 21.2 | 21.2 | 20.9 | 21.1 | 21.3 | 21.3 | 21.3 |
Greenhouse gas emissions (in kilotons) | 145 | 145 | 135 | 120 | 545 | 120 | 140 | 125 | 115 | 500 |
* Adjustments in the revenue line items are for support revenue, cloud subscriptions and support revenue, and other similarly recurring revenues that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges, share-based payment expenses, restructuring expenses, as well as the TomorrowNow and Versata litigation expenses. | ||||||||||
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". | ||||||||||
** Days' Sales Outstanding measures the length of time it takes to collect receivables. SAP calculates DSO by dividing the average invoiced accounts receivables balance of the last 12 months by the average monthly sales of the last 12 months. | ||||||||||
*** In full-time equivalents | ||||||||||
Due to rounding, numbers may not add up precisely. | ||||||||||
F13 | ||||||||||
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SOURCE SAP SE
