Market Overview

SAP SE: Cloud Revenue Up 33% - IFRS EPS Up 38% - Non-IFRS EPS Up 9%

Share:

SAP Q1 2016 Quarterly Statement

- Non-IFRS cloud and software revenue increased 5% to €3.85 billion (6% at constant currencies)

- SAP S/4HANA momentum continues, now exceeding 3,200 customers

- Growing operating profit amidst industry transformation in contrast to main peer

- High visibility into strong second quarter and full year pipeline across all regions indicates increasing momentum as the year progresses - SAP firmly reiterates outlook

WALLDORF, Germany, April 20, 2016 /PRNewswire/ -- SAP SE (NYSE: SAP) today announced its financial results for the first quarter ended March 31, 2016.

SAP Logo.

Business Highlights

Financial Highlights
SAP had strong growth in the cloud, ahead of its mid-term aspirations. First quarter non-IFRS cloud subscriptions and support revenue grew 33% year-over-year (33% at constant currencies) to €678 million. New cloud bookings1 grew a solid 23% (26% at constant currencies) in the first quarter and reached €145 million.

The rapidly growing cloud business together with solid growth in support revenue drove a record share of more predictable revenue. The total of cloud subscriptions & support revenue and software support revenue reached 69% share of total revenue in the first quarter 2016.

IFRS cloud and software revenue was €3.85 billion (2015: €3.65 billion), an increase of 5%. Non-IFRS cloud and software revenue was €3.85 billion (2015: €3.66 billion), an increase of 5% (6% at constant currencies).

IFRS operating profit was up 28% to €0.81 billion. Non-IFRS operating profit grew 5% to €1.10 billion (4% at constant currencies). IFRS earnings per share increased 38% to €0.48. Non-IFRS earnings per share increased 9% to €0.64.

Operating cash flow was €2.48 billion (2015: €2.37 billion), an increase of 5% year-over-year. Free cash flow increased 4% year-over-year to €2.31 billion (2015: €2.23 billion).

"The entire SAP company is focused on delivering best in class solutions to our customers. Our pipeline is strong across our entire portfolio and we are confidently reiterating our guidance for the full year," said Bill McDermott, SAP CEO.

"SAP's strong cloud growth was at the high end of our guidance range for 2016 and ahead of our midterm aspirations. Our cloud gross margin expanded year over year which – along with the successful business transformation – drove operating profit up 5% even with a lower than expected license performance," said Luka Mucic, SAP CFO.

SAP S/4HANA
SAP S/4HANA momentum continued in the first quarter as customers increasingly embrace the benefits of running simple and real time. SAP added more than 500 SAP S/4HANA customers in the quarter, of which approximately 30% are net new SAP customers. A growing driver behind the global S/4HANA adoption is SAP HANA Enterprise Cloud (HEC). Customers can migrate their mission-critical processes to the cloud – HEC offers secure and fast access to SAP's new innovation. Benetton, Norton Rose Fulbright, Beiqi Foton Motor and Huaxin Cement selected SAP S/4HANA in the first quarter.

Human Capital Management
SAP continues to gain traction with its cloud-based Human Capital Management solutions. SAP delivers total workforce management solutions globally and provides extensibility with the HANA Cloud Platform. The customer count for SAP SuccessFactors Employee Central, which is the core of our Human Capital Management offerings, exceeded 1,100 at the end of the first quarter.

Customer Engagement and Commerce
With SAP's Customer Engagement and Commerce (CEC) solutions customers can build a new, more personalized relationship with their consumers, making it richer and more contextual across all channels. SAP is unique because it also enables businesses to connect the front and back office in real-time and fulfill ecommerce in one end-to-end value chain. CEC cloud subscription and support revenue saw strong double-digit growth in the first quarter.

Business Networks
SAP is leading the charge to a hyperconnected world. SAP's business network solutions which include Ariba, Fieldglass and Concur provide a rich open platform that connects a large ecosystem of customers, suppliers, partners and developers delivering ever expanding content and innovation.

Approximately 2.1 million connected companies trade over $800 billion of commerce2 on the Ariba network, approximately 40 million end users process travel and expenses effortlessly with Concur and customers managed over 2.3 million flexible workers in approximately 130 countries with the Fieldglass platform over the past 12 months.

Regional Performance
The Company had a solid performance in the EMEA region, with an 8% increase in Non-IFRS cloud and software revenue. Non-IFRS cloud subscriptions and support revenue grew 49%. In EMEA SAP had solid software license revenue growth.

In the Americas region, the Company grew Non-IFRS cloud and software revenue by 4% and Non-IFRS cloud subscriptions and support revenue by 29%. North America, coming off a very strong fourth quarter in 2015, had a slower than anticipated start to the year. In Latin America, in particular in Brazil, the continuing political and macroeconomic instability weighed on the company's first quarter performance.

In the APJ region Non-IFRS cloud and software revenue was up 1%, with Non-IFRS cloud subscriptions and support revenue growing by 26%. SAP's software revenue performance in the region was in line with the Company's expectations given a tough prior year comparison. China was a highlight with double-digit software revenue growth.

 

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

2 Network spend volume is the total value of purchase orders transacted on the Ariba Network in the trailing 12 months. In previous quarters this also included Concur and Fieldglass for which as of the third quarter 2015 separate more relevant metrics are disclosed.

 

Financial Results at a Glance




First Quarter 20161)


IFRS

Non-IFRS2)

€ million, unless otherwise stated

Q1 2016

Q1 2015

∆ in %

Q1 2016

Q1 2015

∆ in %

∆ in % const. curr.

New Cloud Bookings3)

145

117

23

N/A

N/A

N/A

N/A

Cloud subscriptions and support

677

503

35

678

509

33

33

Software licenses and support

3,172

3,150

1

3,173

3,150

1

2

Cloud and software

3,850

3,653

5

3,851

3,659

5

6

Total revenue

4,727

4,497

5

4,728

4,502

5

6

Share of predictable revenue (in %)

69

66

3pp

69

66

3pp


Operating profit

813

638

28

1,104

1,056

5

4

Profit after tax

570

413

38

763

697

9


Basic earnings per share (€)

0.48

0.35

38

0.64

0.58

9


Number of employees (FTE)

78,230

74,551

5

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 F7 in this Quarterly Statement.

3) As this is an order entry metric, there are no Non-IFRS adjustments.

 

Business Outlook 2016

The Company reiterates the following 2016 outlook:

  • Based on the continued strong momentum in SAP's cloud business the Company expects full year 2016 non-IFRS cloud subscriptions and support revenue to be in a range of €2.95 - €3.05 billion at constant currencies (2015: €2.30 billion). The upper end of this range represents a growth rate of 33% at constant currencies.
  • The Company expects full year 2016 non-IFRS cloud and software revenue to increase by 6% - 8% at constant currencies (2015: €17.23 billion).
  • The Company expects full-year 2016 non-IFRS operating profit to be in a range of €6.4 billion - €6.7 billion at constant currencies (2015: €6.35 billion).

While the Company's full-year 2016 business outlook is at constant currencies, actual currency reported figures are expected to continue to be impacted by exchange rate fluctuations. If exchange rates remain at the March 2016 average level for the rest of the year, the Company expects its non-IFRS cloud and software revenue growth rate as well as its non-IFRS operating profit growth rate to experience a currency benefit in a range of 0 to 2 percentage points for the second quarter 2016 (1 to 3 percentage points for the full year 2016).

Additional Information

Subsequent Events
As of April 1, 2016 SAP has combined its small and medium-sized customers focused solutions SAP Anywhere, SAP Business One and SAP Business ByDesign into one end-to-end organization under the leadership of Executive Board member Steve Singh. In addition, Steve Singh will also be responsible for SAP's healthcare strategy and solutions and continues to be responsible for the SAP Business Networks. This is likely to lead to a change in our segment reporting as of Q2/2016.

General Remarks About this Quarterly Statement
In the past, SAP's quarterly earnings reporting consisted of an earnings press release with condensed financial information and an interim report. This quarterly statement replaces both of these documents and includes all relevant information of both of these documents. Going forward, we will issue a quarterly statement for each of the four fiscal quarters. Additionally, we will issue, as before, a half year report and a full year integrated report.

For a more detailed description of all of SAP's non-IFRS measures and their limitations as well as our constant currency and free cash flow figures see Explanation of Non-IFRS Measures online.

Webcast
SAP earnings conference call for financial analysts will take place on Wednesday, April 20th 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 approximately 310,000 business and public sector customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

For more information, financial community only:

Stefan Gruber

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

Follow SAP Investor Relations on Twitter at @sapinvestor


For more information, press only:

Nicola Leske

+49 (6227) 7-50852 nicola.leske@sap.com, CET

Daniel Reinhardt

+49 (6227) 7-40201 daniel.reinhardt@sap.com, CET

Rajiv Sekhri

+49 (6227) 7-74871   rajiv.sekhri@sap.com, CET


For customers interested in learning more about SAP products:

Global Customer Center:

+49 180 534-34-24

United States Only:

1 (800) 872-1SAP (1-800-872-1727)

    



Financial and Non-Financial Key Facts


€ millions, unless otherwise stated

Q1

2015

Q2

2015

Q3

2015

Q4

2015

TY

2015

Q1

2016

Revenues







Cloud subscriptions and support (IFRS)

503

552

599

631

2,286

677

Cloud subscriptions and support (non-IFRS)

509

555

600

632

2,296

678

% change – yoy

131

129

116

76

109

33

% change constant currency – yoy

95

92

90

60

82

33

Software licenses (IFRS)

696

979

1,014

2,146

4,835

609

Software licenses (non-IFRS)

696

979

1,015

2,146

4,836

609

% change – yoy

12

2

7

15

10

–13

% change constant currency – yoy

1

–7

4

11

4

–10

Software support (IFRS)

2,454

2,531

2,509

2,600

10,093

2,564

Software support (non-IFRS)

2,454

2,531

2,509

2,600

10,094

2,564

% change – yoy

17

17

12

11

14

5

% change constant currency – yoy

7

7

6

6

7

5

Software licenses and support (IFRS)

3,150

3,510

3,523

4,745

14,928

3,172

Software licenses and support (non-IFRS)

3,150

3,510

3,524

4,745

14,930

3,173

% change – yoy

16

13

11

13

13

1

% change constant currency – yoy

5

3

6

9

6

2

Cloud and software (IFRS)

3,653

4,062

4,122

5,377

17,214

3,850

Cloud and software (non-IFRS)

3,659

4,065

4,124

5,378

17,226

3,851

% change – yoy

24

21

19

18

20

5

% change constant currency – yoy

12

9

12

13

12

6

Total revenue (IFRS)

4,497

4,970

4,985

6,342

20,793

4,727

Total revenue (non-IFRS)

4,502

4,972

4,987

6,343

20,805

4,728

% change – yoy

22

20

17

16

18

5

% change constant currency – yoy

10

8

10

11

10

6

Share of predictable revenue (IFRS, in %)

66

62

62

51

60

69

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

66

62

62

51

60

69








Profits







Operating profit (IFRS)

638

701

1,214

1,700

4,252

813

Operating profit (non-IFRS)

1,056

1,394

1,616

2,282

6,348

1,104

% change

15

13

19

7

13

5

% change constant currency

–2

1

15

3

5

4

Profit after tax (IFRS)

413

469

895

1,278

3,056

570

Profit after tax (non-IFRS)

697

960

1,173

1,670

4,501

763

% change

5

2

16

6

8

9








Margins







Cloud subscriptions and support gross margin

(IFRS, in %)

55.3

56.5

57.9

51.8

55.3

57.5

Cloud subscriptions and support gross margin

(non-IFRS, in %)

65.1

65.7

68.8

63.0

65.6

66.3

Software and support gross margin (IFRS, in %)

82.8

84.0

85.0

86.1

84.7

84.2

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

85.1

86.1

86.7

87.7

86.6

85.9

Cloud and software gross margin (IFRS, in %)

79.0

80.3

81.1

82.1

80.8

79.5

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

82.3

83.3

84.1

84.8

83.8

82.4

Gross margin (IFRS, in %)

64.7

67.1

69.0

70.8

68.1

65.1

Gross margin (non-IFRS, in %)

68.6

70.5

71.9

74.1

71.5

67.9

Operating margin (IFRS, in %)

14.2

14.1

24.3

26.8

20.5

17.2

Operating margin (non-IFRS, in %)

23.5

28.0

32.4

36.0

30.5

23.4

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

50.5

52.3

57.0

51.5

52.9

55.2

AT&S Segment – Gross margin (in %)

68.5

71.1

72.4

75.1

72.1

68.1

AT&S Segment – Segment margin (in %)

34.2

39.5

43.1

46.5

41.4

34.8

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

75.1

74.8

77.3

72.3

74.9

75.3

SAP BN Segment – Gross margin (in %)

67.1

67.1

70.1

64.5

67.2

66.6

SAP BN Segment – Segment margin (in %)

18.0

16.0

23.8

19.6

19.4

16.5








Key Profit Ratios







Effective tax rate (IFRS, in %)

13.6

26.4

27.1

22.4

23.4

23.3

Effective tax rate (non-IFRS, in %)

22.3

27.8

28.0

25.1

26.1

26.2








Earnings per share, basic (IFRS, in €)

0.35

0.39

0.75

1.07

2.56

0.48

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

0.58

0.80

0.98

1.40

3.77

0.64








Order Entry







New cloud bookings

117

199

213

345

874

145

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

793

789

782

957

957

953

Orders – Number of on-premise software deals

12,037

13,504

14,027

17,871

57,439

12,884

Thereof worth > 5 Mio € (in %)

23

24

24

31

27

17

Thereof worth < 1 Mio € (in %)

49

41

44

34

40

48








Liquidity and Cash Flow







Net cash flows from operating activities

2,366

410

466

397

3,638

2,482

Purchase of intangible assets and property, plant, and equipment (without acquisitions)

–139

–137

–148

–212

–636

–168

Free cash flow

2,227

273

317

184

3,001

2,313

% of total revenue (IFRS)

50

5

6

3

14

49

Free cash flow

2,227

273

317

184

3,001

2,313

% of profit after tax (IFRS)

539

58

35

14

98

406

Group liquidity, gross

5,333

4,180

4,608

3,559

3,559

5,853

Group debt

–10,524

–10,432

–10,428

–9,174

–9,174

–9,080

Group liquidity, net

–5,191

–6,251

–5,820

–5,615

–5,615

–3,227

Days' sales outstanding (DSO, in days)1)

67

68

69

71

71

73








Financial Position







Cash and cash equivalents

4,635

3,923

3,844

3,411

3,411

5,743

Goodwill

22,896

22,300

22,222

22,689

22,689

21,922

Total assets

43,753

41,088

40,649

41,390

41,390

42,884

Equity

22,117

20,801

21,540

23,295

23,295

22,920

Equity ratio (total equity in % of total assets)

51

51

53

56

56

53








Non-Financials







Headcount (quarter end)2)

74,551

74,497

75,643

76,986

76,986

78,230

Employee retention (in %, rolling 12 months)

93.3

92.6

91.9

91.8

91.8

92.0

Women in management (in %, quarter end)

22.3

22.9

23.2

23.6

23.6

23.6

Greenhouse gas emissions (in kilotons)

145

125

110

75

455

120


1) 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.

2) In full-time equivalents 

Due to rounding, numbers may not add up precisely.

 


Consolidated Income Statements of SAP Group (IFRS)


€ millions, unless otherwise stated


Q1 2016

2015 Q1

∆ in %

Cloud subscriptions and support


677

503

35

Software licenses


609

696

–13

Software support


2,564

2,454

4

Software licenses and support


3,172

3,150

1

Cloud and software


3,850

3,653

5

Services


877

844

4

Total revenue


4,727

4,497

5






Cost of cloud subscriptions and support


–288

–225

28

Cost of software licenses and support


–500

–543

–8

Cost of cloud and software


–788

–768

3

Cost of services


–860

–821

5

Total cost of revenue


–1,649

–1,589

4

Gross profit


3,078

2,908

6

Research and development


–709

–694

2

Sales and marketing


–1,310

–1,253

5

General and administration


–230

–272

–15

Restructuring


–11

–51

–79

Other operating income/expense, net


–6

–1

>100

Total operating expenses


–3,914

–3,859

1

Operating profit


813

638

28






Other non-operating income/expense, net


–35

–148

–76

Finance income


35

48

–27

Finance costs


–70

–59

19

Financial income, net


–35

–11

>100

Profit before tax


743

478

55






Income tax expense


–173

–65

>100

Profit after tax


570

413

38

attributable to owners of parent


572

414

38

attributable to non-controlling interests


–2

0

>100






Earnings per share, basic (in €)1)


0.48

0.35

38

Earnings per share, diluted (in €)1)


0.48

0.35

38


1) For the three months ended March 31, 2016 and 2015, the weighted average number of shares was 1,198 million (diluted 1,199 million) and 1,195 million (diluted: 1,198 million), respectively (treasury stock excluded).

Due to rounding, numbers may not add up precisely.

 


Consolidated Statements of Financial Position of SAP Group (IFRS)


as at March 31, 2016 and December 31, 2015

€ millions

 


2016

 

2015

 

Cash and cash equivalents


5,743

3,411

Other financial assets


360

351

Trade and other receivables


5,550

5,275

Other non-financial assets


551

468

Tax assets


165

235

Total current assets


12,368

9,739

Goodwill


21,922

22,689

Intangible assets


3,954

4,280

Property, plant, and equipment


2,177

2,192

Other financial assets


1,251

1,336

Trade and other receivables


92

87

Other non-financial assets


336

332

Tax assets


287

282

Deferred tax assets


496

453

Total non-current assets


30,516

31,651

Total assets


42,884

41,390


€ millions

 


2016

 

2015

 

Trade and other payables


954

1,088

Tax liabilities


191

230

Financial liabilities


828

841

Other non-financial liabilities


2,274

3,407

Provisions


196

299

Deferred income


5,265

2,001

Total current liabilities


9,708

7,867

Trade and other payables


90

81

Tax liabilities


414

402

Financial liabilities


8,640

8,681

Other non-financial liabilities


345

331

Provisions


275

180

Deferred tax liabilities


385

448

Deferred income


107

106

Total non-current liabilities


10,256

10,228

Total liabilities


19,964

18,095

Issued capital


1,229

1,229

Share premium


569

558

Retained earnings


20,621

20,044

Other components of equity


1,593

2,561

Treasury shares


–1,120

–1,124

Equity attributable to owners of parent


22,892

23,267





Non-controlling interests


28

28

Total equity


22,920

23,295

Total equity and liabilities


42,884

41,390


Due to rounding, numbers may not add up precisely.

 

Consolidated Statements of Cash Flows of SAP Group (IFRS)


€ millions

Q1 2016

Q1 2015

Profit after tax

570

413

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



Depreciation and amortization

309

321

Income tax expense

173

65

Financial income, net

35

11

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

35

18

Other adjustments for non-cash items

8

–2

Decrease/increase in trade and other receivables

–443

–890

Decrease/increase in other assets

–191

–145

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

–1,097

–567

Decrease/increase in deferred income

3,393

3,556

Interest paid

–54

–32

Interest received

17

23

Income taxes paid, net of refunds

–273

–405

Net cash flows from operating activities

2,482

2,366

Business combinations, net of cash and cash equivalents acquired

–3

–10

Cash receipts from derivative financial instruments related to business combinations

0

266

Total cash flows for business combinations, net of cash and cash equivalents acquired

–3

256

Purchase of intangible assets and property, plant, and equipment

–168

–139

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

17

16

Purchase of equity or debt instruments of other entities

–164

–755

Proceeds from sales of equity or debt instruments of other entities

186

122

Net cash flows from investing activities

–132

–500

Proceeds from reissuance of treasury shares

7

6

Proceeds from borrowings

0

2

Repayments of borrowings

–2

–770

Transactions with non-controlling interests

3

0

Net cash flows from financing activities

7

–762

Effect of foreign currency rates on cash and cash equivalents

–25

203

Net decrease/increase in cash and cash equivalents

2,332

1,307

Cash and cash equivalents at the beginning of the period

3,411

3,328

Cash and cash equivalents at the end of the period

5,743

4,635

Due to rounding, numbers may not add up precisely.

 


Segment Reporting (IFRS)


Applications, Technology & Services


€ millions

Q1 2016

Q1 2015

∆ in %

∆ in %

Actual

Currency

Constant

Currency

Actual

Currency

Actual

Currency

Constant

Currency

Cloud subscriptions and support

304

306

203

50

51

Software licenses

608

626

696

–13

–10

Software support

2,557

2,564

2,445

5

5

Software licenses and support

3,165

3,191

3,141

1

2

Cloud and software

3,470

3,497

3,344

4

5

Services

802

817

784

2

4

Total segment revenue

4,271

4,314

4,128

3

4

Cost of cloud subscriptions and support

–136

–138

–100

36

37

Cost of software licenses and support

–467

–467

–471

–1

–1

Cost of cloud and software

–603

–605

–571

6

6

Cost of services

–758

–775

–727

4

7

Total cost of revenue

–1,362

–1,380

–1,298

5

6

Segment gross profit

2,909

2,934

2,831

3

4

Total segment expenses

–1,421

–1,442

–1,420

0

2

Segment profit

1,488

1,492

1,411

5

6

Margins






Cloud subscriptions and support gross margin (in %)

55

55

51

5


Gross margin (in %)

68

68

69

0


Segment margin (in %)

35

35

34

1



SAP Business Network


€ millions

Q1 2016

Q1 2015

∆ in %

∆ in %

Actual Currency

Constant Currency

Actual Currency

Actual

Currency

Constant

Currency

Cloud subscriptions and support

373

369

306

22

21

Software licenses

0

0

0

0

0

Software support

7

7

8

–9

–11

Software licenses and support

7

7

8

–10

–12

Cloud and software

380

375

314

21

20

Services

71

71

55

30

30

Total segment revenue

451

447

368

22

21

Cost of cloud subscriptions and support

–92

–92

–76

21

20

Cost of software licenses and support

0

0

0

0

0

Cost of cloud and software

–92

–92

–77

20

20

Cost of services

–59

–59

–45

32

33

Total cost of revenue

–151

–151

–121

24

25

Segment gross profit

300

296

247

22

20

Total segment expenses

–226

–226

–181

25

25

Segment profit

75

70

66

13

6

Margins






Cloud subscriptions and support gross margin (in %)

75

75

75

0


Gross margin (in %)

67

66

67

–1


Segment margin (in %)

17

16

18

–1


 

Reconciliation from Non-IFRS Numbers to IFRS Numbers


€ millions, unless otherwise stated

Q1 2016

Q1 2015

∆ in %

IFRS

Adj.1)

Non-IFRS1)

Currency

Impact2)

Non-IFRS Constant Currency2)

IFRS

Adj.1)

Non-IFRS1)

IFRS

Non-IFRS1)

Non-IFRS Constant Currency2)

Revenue Numbers












Cloud subscriptions and support

677

1

678

–2

676

503

6

509

35

33

33

Software licenses

609

0

609

18

627

696

0

696

–13

–13

–10

Software support

2,564

0

2,564

7

2,572

2,454

0

2,454

4

5

5

Software licenses and support

3,172

0

3,173

25

3,198

3,150

0

3,150

1

1

2

Cloud and software

3,850

1

3,851

23

3,874

3,653

6

3,659

5

5

6

Services

877

0

877

15

892

844

0

844

4

4

6

Total revenue

4,727

1

4,728

38

4,766

4,497

6

4,502

5

5

6













Operating Expense Numbers












Cost of cloud subscriptions and support

–288

60

–228



–225

47

–178

28

29


Cost of software licenses and support

–500

52

–449



–543

73

–470

–8

–5


Cost of cloud and software

–788

111

–677



–768

121

–647

3

5


Cost of services

–860

19

–841



–821

52

–768

5

10


Total cost of revenue

–1,649

130

–1,518



–1,589

173

–1,415

4

7


Gross profit

3,078

132

3,210



2,908

179

3,087

6

4


Research and development

–709

27

–681



–694

54

–640

2

6


Sales and marketing

–1,310

107

–1,203



–1,253

93

–1,160

5

4


General and administration

–230

15

–216



–272

42

–229

–15

–6


Restructuring

–11

11

0



–51

51

0

–79

0


Other operating income/expense, net

–6

0

–6



–1

0

–1

>100

>100


Total operating expenses

–3,914

290

–3,624

–43

–3,667

–3,859

413

–3,446

1

5

6













Profit Numbers












Operating profit

813

291

1,104

–5

1,099

638

419

1,056

28

5

4

Other non-operating income/expense, net

–35

0

–35



–148

0

–148

–76

–76


Finance income

35

0

35



48

0

48

–27

–27


Finance costs

–70

0

–70



–59

0

–59

19

19


Financial income, net

–35

0

–35



–11

0

–11

>100

>100


Profit before tax

743

291

1,034



478

419

897

55

15


Income tax expense

–173

–98

–271



–65

–135

–200

>100

35


Profit after tax

570

193

763



413

284

697

38

9


attributable to owners of parent

572

193

765



414

284

698

38

10


attributable to non-controlling interests

–2

0

–2



0

0

0

>100

>100














Key Ratios












Operating margin (in %)

17.2


23.4


23.1

14.2


23.5

3.0pp

–0.1pp

–0.4pp

Effective tax rate (in %)

23.3


26.2



13.6


22.3

9.7pp

3.9pp


Earnings per share, basic (in €)

0.48


0.64



0.35


0.58

38

9



1) Adjustments in the revenue line items are for software support revenue, cloud subscriptions and support revenue, and other similarly recurring revenues that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges, share-based payment expenses, as well as restructuring expenses.

2) Constant currency revenue and operating income figures are calculated by translating revenue and operating income of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS number of the previous year's respective period.


For a more detailed description of these adjustments and their limitations as well as our constant currency figures, see our Web site www.sap.com/corporate-en/investors/newsandreports/reporting-framework.epx under "Non-IFRS Measures, Adjustments and Full-Year Estimates".


Due to rounding, numbers may not add up precisely.

 

Non-IFRS Adjustments – Actuals and Estimates


€ millions

Estimated Amounts for

Full Year 2016

Q1 2016

Q1 2015

Operating profit (IFRS)


813

638

Revenue adjustments

<20

1

6

Adjustment for acquisition-related charges 

680 to 730

170

183

Adjustment for share-based payment expenses

650 to 690

109

179

Adjustment for restructuring

40 to 60

11

51

Operating expense adjustments


290

413

Operating profit adjustments


291

419

Operating profit (non-IFRS)


1,104

1,056

 

Non-IFRS Adjustments by Functional Areas


€ millions

Q1 2016

Q1 2015

IFRS

Acquisition-related

SBP1)

Restruc-turing

Non-IFRS

IFRS

Acquisition-related

SBP1)

Restruc-turing

Non-IFRS

Cost of cloud and software

–788

98

13

0

–677

–768

103

17

0

–647

Cost of services

–860

3

16

0

–841

–821

21

32

0

–768

Research and development

–709

2

25

0

–681

–694

15

39

0

–640

Sales and marketing

–1,310

64

43

0

–1,203

–1,253

43

50

0

–1,160

General and administration

–230

3

12

0

–216

–272

1

42

0

–229

Restructuring

–11

0

0

11

0

–51

0

0

51

0

Other operating income/expense, net

–6

0

0

0

–6

–1

0

0

0

–1

Total operating expenses

–3,914

170

109

11

–3,624

–3,859

183

179

51

–3,446

1) Share based Payments

 

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


€ millions

Q1 2016

Q1 2015

Cost of cloud and software

1

7

Cost of services

3

16

Research and development

3

8

Sales and marketing

3

15

General and administration

1

5

Restructuring expenses

11

51

 



Revenue by Region (IFRS and Non-IFRS)


€ millions

Q1 2016

Q1 2015

 ∆ in %


IFRS

Adj.1)

Non-IFRS1)

Currency

Impact2)

Non-IFRS

Constant

Currency2)

IFRS

Adj.1)

Non-IFRS1)

IFRS

Non-IFRS1)

Non-IFRS

Constant

Currency2)

Cloud subscriptions and support revenue by region







EMEA

161

0

161

1

162

108

1

108

49

49

50

Americas

460

0

460

–5

455

351

5

356

31

29

28

APJ

57

0

57

1

58

45

0

45

27

26

30

Cloud subscriptions and support revenue

677

1

678

–2

676

503

6

509

35

33

33













Cloud and software revenue by region







EMEA

1,686

0

1,686

29

1,715

1,562

1

1,563

8

8

10

Americas

1,583

1

1,584

–20

1,564

1,516

5

1,521

4

4

3

APJ

581

0

581

13

594

575

0

575

1

1

3

Cloud and software revenue

3,850

1

3,851

23

3,874

3,653

6

3,659

5

5

6













Total revenue by region







Germany

605

0

605

0

605

558

0

558

8

8

8

Rest of EMEA

1,442

0

1,442

36

1,478

1,376

1

1,376

5

5

7

Total EMEA

2,047

0

2,047

36

2,083

1,933

1

1,934

6

6

8

United States

1,606

1

1,606

–26

1,580

1,463

5

1,468

10

9

8

Rest of Americas

371

0

371

11

382

399

0

399

–7

–7

–4

Total Americas

1,977

1

1,977

–15

1,962

1,862

5

1,867

6

6

5

Japan

169

0

169

–8

161

155

0

155

9

9

4

Rest of APJ

535

0

535

25

560

547

0

547

–2

–2

2

Total APJ

704

0

704

17

721

702

0

702

0

0

3

Total revenue 

4,727

1

4,728

38

4,766

4,497

6

4,502

5

5

6


1) Adjustments in the revenue line items are for support revenue, cloud subscriptions and support revenue, and other similarly recurring revenues that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules.

2) Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS number of the previous year's respective period.


For a more detailed description of these adjustments and their limitations as well as our constant currency figures, see our Web site www.sap.com/corporate-en/investors/newsandreports/reporting-framework.epx under "Non-IFRS Measures and Estimates".


Due to rounding, numbers may not add up precisely.

 

Employees by Region and Functional Areas



Q1 2016

Q1 2015

Full-Time Equivalents

EMEA

Americas

APJ

Total

EMEA

Americas

APJ

Total

Cloud and software

6,121

4,008

5,094

15,224

6,000

3,289

5,211

14,501

Services

6,941

4,326

3,903

15,169

7,226

4,936

2,967

15,129

Research and development

9,717

4,364

7,095

21,177

9,160

4,029

5,911

19,100

Sales and marketing

7,295

7,666

3,811

18,772

7,169

7,256

3,658

18,083

General and administration

2,506

1,648

963

5,116

2,463

1,623

978

5,064

Infrastructure

1,541

790

441

2,772

1,462

833

379

2,674

SAP Group

34,121

22,802

21,307

78,230

33,479

21,967

19,104

74,551

Thereof acquisitions 1)

4

25

0

29

0

0

0

0

SAP Group (average first three months)

34,046

22,578

21,223

77,847

33,447

21,977

19,031

74,455

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

 

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.
© 2016 SAP SE. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE. The information contained herein may be changed without prior notice.
Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

Logo - http://photos.prnewswire.com/prnh/20110126/AQ34470LOGO

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sap-se-cloud-revenue-up-33--ifrs-eps-up-38--non-ifrs-eps-up-9-300254333.html

SOURCE SAP SE

View Comments and Join the Discussion!