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SAP Hits Increased 2016 Guidance - Raises 2020 Targets
[January 24, 2017]

SAP Hits Increased 2016 Guidance - Raises 2020 Targets

WALLDORF, Germany, Jan. 24, 2017 /PRNewswire/ -- SAP SE (NYSE: SAP) today announced its financial results for the fourth quarter and twelve months ended December 31, 2016.

"SAP's outstanding 2016 performance is the latest in our seven year run of profitable growth. We expanded our addressable market, acquired best in class assets and innovated a new generation of ERP with SAP S/4HANA. We are the leader in the business software industry with a consistent trifecta of strong software sales, fast cloud growth and operating income expansion. Our innovation agenda is accelerating in Machine Learning, the Internet of Things and Blockchain. SAP is winning big and we have enormous confidence in our accelerated 2020 ambition!" - Bill McDermott, CEO

"SAP is consistently delivering on its promise and achieved all raised guidance metrics for the full year. Furthermore, operating cash flow was strong with a 27% increase in 2016. New cloud bookings growth of 40% for the fourth quarter was exceptional. Our strong backlog paired with our robust pipeline position us for yet another year of profitable growth in 2017 and allow us to confidently raise our high level 2020 ambition." - Luka Mucic, CFO

Business Highlights

Financial Highlights

Full Year 2016

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

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

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

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

Fourth Quarter 2016

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

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

SAP S/4HANA

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

SAP Cloud Platform

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

Human Capital Management

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

Customer Engagement and Commerce

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

Business Networks

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

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

Regional Revenue Performance in the Fourth Quarter 2016

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

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

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

Financial Results at a Glance



Fourth Quarter 20161)


IFRS

Non-IFRS2)

€ million, unless otherwise stated

Q4 2016

Q4 2015

? in %

Q4 2016

Q4 2015

? in %

? in %
const.
curr.

New Cloud Bookings3)

N/A

N/A

N/A

483

344

40

37

Cloud subscriptions and support

827

631

31

827

632

31

29

Software licenses and support

4,933

4,745

4

4,934

4,745

4

3

Cloud and software

5,760

5,377

7

5,761

5,378

7

6

Total revenue

6,724

6,342

6

6,724

6,343

6

5

Share of predictable revenue (in %)

53

51

2pp

53

51

2pp


Operating profit

1,936

1,700

14

2,371

2,282

4

2

Profit after tax

1,510

1,278

18

1,818

1,670

9


Basic earnings per share (€)

1.26

1.07

18

1.52

1.40

9


Number of employees (FTE)

84,183

76,986

9

N/A

N/A

N/A

N/A

 

Full Year 20161)


IFRS

Non-IFRS2)

€ million, unless otherwise stated

Q1–Q4

2016

Q1–Q4

2015

? in %

Q1–Q4

2016

Q1–Q4

2015

? in %

? in %
const.
curr.

New Cloud Bookings3)

N/A

N/A

N/A

1,147

874

31

31

Cloud subscriptions and support

2,993

2,286

31

2,995

2,296

30

31

Software licenses and support

15,431

14,928

3

15,434

14,930

3

4

Cloud and software

18,424

17,214

7

18,428

17,226

7

8

Total revenue

22,062

20,793

6

22,067

20,805

6

7

Share of predictable revenue (in %)

61

60

2pp

61

60

2pp


Operating profit

5,121

4,252

20

6,629

6,348

4

4

Profit after tax

3,618

3,056

18

4,650

4,501

3


Basic earnings per share (€)

3.03

2.56

18

3.89

3.77

3


Number of employees (FTE)

84,183

76,986

9

N/A

N/A

N/A

N/A

1) All figures are unaudited.

2) For a detailed description of SAP's non-IFRS measures see Explanation of Non-IFRS Measures online. For a breakdown of the individual adjustments see page 18 in this Quarterly Statement.

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


Due to rounding, numbers may not add up precisely.

 

Business Outlook 2017

The Company is providing the following 2017 outlook:

  • Based on the continued strong momentum in SAP's cloud business the Company expects full year 2017 non-IFRS cloud subscriptions and support revenue to be in a range of €3.8 billion - €4.0 billion at constant currencies (2016: €2.99 billion), in line with the previous 2017 ambition which was raised at the beginning of 2016. The upper end of this range represents a growth rate of 34% at constant currencies.
  • The Company expects full year 2017 non-IFRS cloud & software revenue to increase by 6% - 8% at constant currencies (2016: €18.43 billion).
  • The Company expects full year 2017 non-IFRS total revenue in a range of €23.2 billion to €23.6 billion at constant currencies (2016: €22.07 billion). This is above the previous 2017 ambition which was raised at the beginning of 2016.
  • The Company expects full-year 2017 non-IFRS operating profit to be in a range of €6.8 billion - €7.0 billion at constant currencies (2016: €6.63 billion). This is above the previous 2017 ambition which was raised at the beginning of 2016.

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

Ambition 2020

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

  • €8.0 - €8.5 billion non-IFRS cloud subscriptions and support revenue (previously €7.5 - €8.0 billion)
  • €28 - €29 billion non-IFRS total revenue (previously €26 - €28 billion)
  • €8.5 - €9.0 billion non-IFRS operating profit (previously €8 - €9 billion)

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

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

 

Financial and Non-Financial Key Facts


€ millions, unless otherwise stated

Q1

2015

Q2

2015

Q3

2015

Q4

2015

TY

2015

Q1

2016

Q2

2016

Q3

2016

Q4

2016

TY

2016

Revenues

Cloud subscriptions and support (IFRS)

503

552

599

631

2,286

677

720

769

827

2,993

Cloud subscriptions and support (non-IFRS)

509

555

600

632

2,296

678

721

769

827

2,995

% change – yoy

131

129

116

76

109

33

30

28

31

30

% change constant currency – yoy

95

92

90

60

82

33

33

29

29

31

Software licenses (IFRS)

696

979

1,014

2,146

4,835

609

1,040

1,034

2,177

4,860

Software licenses (non-IFRS)

696

979

1,015

2,146

4,836

609

1,042

1,034

2,177

4,862

% change – yoy

12

2

7

15

10

–13

6

2

1

1

% change constant currency – yoy

1

–7

4

11

4

–10

10

2

0

1

Software support (IFRS)

2,454

2,531

2,509

2,600

10,093

2,564

2,598

2,653

2,756

10,571

Software support (non-IFRS)

2,454

2,531

2,509

2,600

10,094

2,564

2,598

2,653

2,756

10,572

% change – yoy

17

17

12

11

14

5

3

6

6

5

% change constant currency – yoy

7

7

6

6

7

5

6

6

5

6

Software licenses and support (IFRS)

3,150

3,510

3,523

4,745

14,928

3,172

3,639

3,686

4,933

15,431

Software licenses and support (non-IFRS)

3,150

3,510

3,524

4,745

14,930

3,173

3,640

3,687

4,934

15,434

% change – yoy

16

13

11

13

13

1

4

5

4

3

% change constant currency – yoy

5

3

6

9

6

2

7

5

3

4

Cloud and software (IFRS)

3,653

4,062

4,122

5,377

17,214

3,850

4,359

4,455

5,760

18,424

Cloud and software (non-IFRS)

3,659

4,065

4,124

5,378

17,226

3,851

4,361

4,456

5,761

18,428

% change – yoy

24

21

19

18

20

5

7

8

7

7

% change constant currency – yoy

12

9

12

13

12

6

11

9

6

8

Total revenue (IFRS)

4,497

4,970

4,985

6,342

20,793

4,727

5,237

5,375

6,724

22,062

Total revenue (non-IFRS)

4,502

4,972

4,987

6,343

20,805

4,728

5,239

5,375

6,724

22,067

% change – yoy

22

20

17

16

18

5

5

8

6

6

% change constant currency – yoy

10

8

10

11

10

6

9

8

5

7

Share of predictable revenue (IFRS, in %)

66

62

62

51

60

69

63

64

53

61

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

66

62

62

51

60

69

63

64

53

61












Profits











Operating profit (IFRS)

638

701

1,214

1,700

4,252

813

1,269

1,103

1,936

5,121

Operating profit (non-IFRS)

1,056

1,394

1,616

2,282

6,348

1,104

1,516

1,638

2,371

6,629

% change

15

13

19

7

13

5

9

1

4

4

% change constant currency

–2

1

15

3

5

4

11

1

2

4

Profit after tax (IFRS)

413

469

895

1,278

3,056

570

813

725

1,510

3,618

Profit after tax (non-IFRS)

697

960

1,173

1,670

4,501

763

979

1,089

1,818

4,650

% change

5

2

16

6

8

9

2

–7

9

3












Margins











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

55.3

56.5

57.9

51.8

55.3

57.5

57.0

56.7

55.2

56.5

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

65.1

65.7

68.8

63.0

65.6

66.3

65.2

64.9

63.1

64.8

Software and support gross margin (IFRS, in %)

82.8

84.0

85.0

86.1

84.7

84.2

86.1

85.4

87.1

85.9

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

85.1

86.1

86.7

87.7

86.6

85.9

87.4

87.4

88.5

87.4

Cloud and software gross margin (IFRS, in %)

79.0

80.3

81.1

82.1

80.8

79.5

81.3

80.5

82.5

81.1

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

82.3

83.3

84.1

84.8

83.8

82.4

83.7

83.5

84.8

83.7

Gross margin (IFRS, in %)

66.8

69.0

70.7

72.4

70.0

67.0

70.4

69.4

73.0

70.2

Gross margin (non-IFRS, in %)

70.6

72.4

73.6

75.6

73.3

69.7

72.7

72.7

75.6

72.9

Operating margin (IFRS, in %)

14.2

14.1

24.3

26.8

20.5

17.2

24.2

20.5

28.8

23.2

Operating margin (non-IFRS, in %)

23.5

28.0

32.4

36.0

30.5

23.4

28.9

30.5

35.3

30.0

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

50

51

56

51

52

54

52

51

49

52

AT&S Segment1) – Gross margin (in %)

71

73

74

77

74

70

73

74

77

74

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

34

39

43

46

41

34

40

40

45

40

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

75

75

77

72

75

75

76

77

75

76

SAP BN Segment2) – Gross margin (in %)

68

68

71

65

68

67

68

68

66

67

SAP BN Segment2) – Segment margin (in %)

18

16

24

20

19

16

18

20

16

18












Key Profit Ratios











Effective tax rate (IFRS, in %)

13.6

26.4

27.1

22.4

23.4

23.3

28.9

28.4

22.5

25.4

Effective tax rate (non-IFRS, in %)

22.3

27.8

28.0

25.1

26.1

26.2

29.6

29.7

23.7

26.9












Earnings per share, basic (IFRS, in €)

0.35

0.39

0.75

1.07

2.56

0.48

0.68

0.61

1.26

3.03

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

0.58

0.80

0.98

1.40

3.77

0.64

0.82

0.91

1.52

3.89












Order Entry











New Cloud Bookings

117

199

213

344

874

145

255

265

483

1,147

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

793

789

782

957

957

953

1,003

1,081

1,271

1,271

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

12,037

13,504

14,027

17,871

57,439

12,884

14,468

13,048

16,891

57,291

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

23

24

24

31

27

17

29

26

34

29

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

49

41

44

34

40

48

38

40

35

38












Liquidity and Cash Flow











Net cash flows from operating activities

2,366

410

466

397

3,638

2,482

439

707

1,000

4,628

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

–139

–137

–148

–212

–636

–168

–237

–261

–335

–1,001

Free cash flow

2,227

273

317

184

3,001

2,313

202

446

665

3,627

% of total revenue (IFRS)

50

5

6

3

14

49

4

8

10

16

% of profit after tax (IFRS)

539

58

35

14

98

406

25

61

44

100

Group liquidity, gross

5,333

4,180

4,608

3,559

3,559

5,853

4,347

4,388

4,673

4,673

Group debt

–10,524

–10,432

–10,428

–9,174

–9,174

–9,080

–8,593

–8,134

–7,825

–7,825

Group liquidity, net

–5,191

–6,251

–5,820

–5,615

–5,615

–3,227

–4,245

–3,746

–3,152

–3,152

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

67

68

69

71

71

72

73

74

74

74












Financial Position











Cash and cash equivalents

4,635

3,923

3,844

3,411

3,411

5,743

4,206

4,112

3,702

3,702

Goodwill

22,896

22,300

22,222

22,689

22,689

21,922

22,354

22,276

23,311

23,311

Total assets

43,753

41,088

40,649

41,390

41,390

42,884

41,788

41,601

44,354

44,354

Equity

22,117

20,801

21,540

23,295

23,295

22,920

22,963

23,764

26,382

26,382

Equity ratio (total equity in % of total assets)

51

51

53

56

56

53

55

57

59

59












Non-Financials











Headcount (quarter end)4)

74,551

74,497

75,643

76,986

76,986

78,230

79,962

82,426

84,183

84,183

Employee retention (in %, rolling 12 months)

93.3

92.6

91.9

91.8

91.8

92.0

92.6

93.4

93.7

93.7

Women in management (in %, quarter end)

22.3

22.9

23.2

23.6

23.6

23.6

24.1

24.3

24.5

24.5

Greenhouse gas emissions (in kilotons)

145

125

110

75

455

120

95

85

80

380

1) Applications, Technology & Services Segment

2) SAP Business Network Segment

3) Days' sales outstanding measures the length of time it takes to collect receivables. SAP calculates DSO by dividing the average invoiced accounts receivables balance of the last 12 months by the average monthly sales of the last 12 months.

4) In full-time equivalents

Due to rounding, numbers may not add up precisely.

 

Consolidated Income Statements of SAP Group (IFRS) – Quarter


€ millions, unless otherwise stated


Q4 2016

Q4 2015

? in %

Cloud subscriptions and support


827

631

31

Software licenses


2,177

2,146

1

Software support


2,756

2,600

6

Software licenses and support


4,933

4,745

4

Cloud and software


5,760

5,377

7

Services


963

965

0

Total revenue


6,724

6,342

6






Cost of cloud subscriptions and support


–371

–304

22

Cost of software licenses and support


–637

–660

–3

Cost of cloud and software


–1,008

–964

5

Cost of services


–806

–787

2

Total cost of revenue


–1,814

–1,751

4

Gross profit


4,909

4,591

7

Research and development


–857

–796

8

Sales and marketing


–1,833

–1,755

4

General and administration


–277

–281

–1

Restructuring


–7

–59

–88

Other operating income/expense, net


1

1

>100

Total operating expenses


–4,787

–4,642

3

Operating profit


1,936

1,700

14






Other non-operating income/expense, net


–54

–28

91

Finance income


125

52

>100

Finance costs


–59

–76

–23

Financial income, net


67

–24

<-100

Profit before tax


1,949

1,647

18






Income tax expense


–438

–369

19

Profit after tax


1,510

1,278

18

Attributable to owners of parent


1,513

1,281

18

Attributable to non-controlling interests


–2

–3

–18






Earnings per share, basic (in €)1)


1.26

1.07

18

Earnings per share, diluted (in €)1)


1.26

1.07

18

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

Due to rounding, numbers may not add up precisely.

 

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


€ millions, unless otherwise stated


Q1–Q4

2016

Q1–Q4

2015

? in %

Cloud subscriptions and support


2,993

2,286

31

Software licenses


4,860

4,835

1

Software support


10,571

10,093

5

Software licenses and support


15,431

14,928

3

Cloud and software


18,424

17,214

7

Services


3,638

3,579

2

Total revenue


22,062

20,793

6






Cost of cloud subscriptions and support


–1,301

–1,022

27

Cost of software licenses and support


–2,181

–2,291

–5

Cost of cloud and software


–3,482

–3,313

5

Cost of services


–3,088

–2,932

5

Total cost of revenue


–6,570

–6,245

5

Gross profit


15,492

14,548

6

Research and development


–3,041

–2,845

7

Sales and marketing


–6,294

–5,782

9

General and administration


–1,005

–1,048

–4

Restructuring


–28

–621

–96

Other operating income/expense, net


–4

1

<-100

Total operating expenses


–16,942

–16,541

2

Operating profit


5,121

4,252

20






Other non-operating income/expense, net


–234

–256

–9

Finance income


230

241

–4

Finance costs


–268

–246

9

Financial income, net


–38

–5

>100

Profit before tax


4,849

3,991

21






Income tax expense


–1,230

–935

32

Profit after tax


3,618

3,056

18

Attributable to owners of parent


3,631

3,064

18

Attributable to non-controlling interests


–13

–8

56






Earnings per share, basic (in €)1)


3.03

2.56

18

Earnings per share, diluted (in €)1)


3.03

2.56

18

1) For the twelve months ended December 31, 2016 and 2015, the weighted average number of shares was 1,198 million (diluted 1,199 million) and 1,197 million (diluted: 1,198 million), respectively (treasury stock excluded).

Due to rounding, numbers may not add up precisely.

 

Consolidated Statements of Financial Position of SAP Group (IFRS)


as at December 31

€ millions


2016

2015

Cash and cash equivalents


3,702

3,411

Other financial assets


1,124

351

Trade and other receivables


5,975

5,274

Other non-financial assets


587

468

Tax assets


238

235

Total current assets


11,626

9,739

Goodwill


23,311

22,689

Intangible assets


3,786

4,280

Property, plant, and equipment


2,580

2,192

Other financial assets


1,358

1,336

Trade and other receivables


125

87

Other non-financial assets


528

332

Tax assets


448

282

Deferred tax assets


591

453

Total non-current assets


32,728

31,651

Total assets


44,354

41,390


€ millions


2016

2015

Trade and other payables


1,290

1,088

Tax liabilities


318

230

Financial liabilities


1,813

841

Other non-financial liabilities


3,698

3,407

Provisions


183

299

Deferred income


2,433

2,001

Total current liabilities


9,734

7,867

Trade and other payables


127

81

Tax liabilities


376

402

Financial liabilities


6,481

8,681

Other non-financial liabilities


470

331

Provisions


217

180

Deferred tax liabilities


424

448

Deferred income


143

106

Total non-current liabilities


8,238

10,228

Total liabilities


17,972

18,095

Issued capital


1,229

1,229

Share premium


599

558

Retained earnings


22,287

20,044

Other components of equity


3,346

2,561

Treasury shares


–1,099

–1,124

Equity attributable to owners of parent


26,361

23,267





Non-controlling interests


21

28

Total equity


26,382

23,295

Total equity and liabilities


44,354

41,390


Due to rounding, numbers may not add up precisely.

 

Consolidated Statements of Cash Flows of SAP Group (IFRS)


€ millions

Q1–Q4 2016

Q1–Q4 2015

Profit after tax

3,618

3,056

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



Depreciation and amortization

1,268

1,289

Income tax expense

1,230

935

Financial income, net

38

5

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

51

45

Other adjustments for non-cash items

39

–2

Decrease/increase in trade and other receivables

–725

–844

Decrease/increase in other assets

–252

–313

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

530

757

Decrease/increase in deferred income

418

218

Interest paid

–190

–172

Interest received

79

82

Income taxes paid, net of refunds

–1,477

–1,420

Net cash flows from operating activities

4,628

3,638

Business combinations, net of cash and cash equivalents acquired

–106

–39

Cash receipts from derivative financial instruments related to business combinations

0

266

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

–106

226

Purchase of intangible assets or property, plant, and equipment

–1,001

–636

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

63

68

Purchase of equity or debt instruments of other entities

–1,625

–1,871

Proceeds from sales of equity or debt instruments of other entities

869

1,880

Net cash flows from investing activities

–1,799

–334

Dividends paid

–1,378

–1,316

Proceeds from reissuance of treasury shares

27

64

Proceeds from borrowings

400

1,748

Cash receipts from swap contracts

43

0

Total cash flows from proceeds from borrowings

443

1,748

Repayments of borrowings

–1,800

–3,852

Transactions with non-controlling interests

3

0

Net cash flows from financing activities

–2,704

–3,356

Effect of foreign currency rates on cash and cash equivalents

167

135

Net decrease/increase in cash and cash equivalents

291

83

Cash and cash equivalents at the beginning of the period

3,411

3,328

Cash and cash equivalents at the end of the period

3,702

3,411

Due to rounding, numbers may not add up precisely.

 

Segment Reporting (IFRS)

Applications, Technology & Services


€ millions

Q4 2016

Q4 2015

? in %

? in %

Actual

Currency

Constant

Currency

Actual

Currency

Actual

Currency

Constant

Currency

Cloud subscriptions and support

384

385

271

42

42

Software licenses

2,155

2,132

2,124

1

0

Software support

2,726

2,706

2,574

6

5

Software licenses and support

4,881

4,837

4,697

4

3

Cloud and software

5,265

5,222

4,969

6

5

Services

866

859

865

0

–1

Total segment revenue

6,130

6,081

5,833

5

4

Cost of cloud subscriptions and support

–195

–192

–134

46

44

Cost of software licenses and support

–559

–554

–572

–2

–3

Cost of cloud and software

–754

–746

–706

7

6

Cost of services

–686

–686

–659

4

4

Total cost of revenue

–1,439

–1,432

–1,364

6

5

Segment gross profit

4,691

4,649

4,469

5

4

Other segment expenses

–1,933

–1,933

–1,799

7

7

Segment profit

2,758

2,716

2,670

3

2

Margins






Cloud subscriptions and support gross margin (in %)

49

50

51

–1pp

–1pp

Gross margin (in %)

77

76

77

–0pp

–0pp

Segment margin (in %)

45

45

46

–1pp

–1pp

 

SAP Business Network


€ millions

Q4 2016

Q4 2015

? in %

? in %

Actual
Currency

Constant
Currency

Actual
Currency

Actual

Currency

Constant

Currency

Cloud subscriptions and support

429

419

355

21

18

Software licenses

0

0

0

0

0

Software support

8

8

6

23

19

Software licenses and support

8

8

6

31

26

Cloud and software

437

426

361

21

18

Services

85

84

75

14

12

Total segment revenue

522

510

436

20

17

Cost of cloud subscriptions and support

–106

–105

–98

8

7

Cost of software licenses and support

–1

–1

0

162

162

Cost of cloud and software

–107

–105

–99

8

7

Cost of services

–69

–69

–54

30

29

Total cost of revenue

–176

–175

–152

16

15

Segment gross profit

346

335

284

22

18

Other segment expenses

–263

–263

–198

33

33

Segment profit

83

72

86

–4

–16

Margins






Cloud subscriptions and support gross margin (in %)

75

75

72

3pp

3pp

Gross margin (in %)

66

66

65

1pp

1pp

Segment margin (in %)

16

14

20

–4pp

–6pp


Due to rounding, numbers may not add up precisely.

 

Applications, Technology & Services


€ millions

Q1–Q4 2016

Q1–Q4 2015

? in %

? in %

Actual

Currency

Constant

Currency

Actual

Currency

Actual

Currency

Constant

Currency

Cloud subscriptions and support

1,353

1,371

932

45

47

Software licenses

4,784

4,814

4,770

0

1

Software support

10,464

10,544

9,990

5

6

Software licenses and support

15,247

15,358

14,760

3

4

Cloud and software

16,600

16,729

15,692

6

7

Services

3,319

3,358

3,271

1

3

Total segment revenue

19,920

20,087

18,963

5

6

Cost of cloud subscriptions and support

–655

–658

–444

47

48

Cost of software licenses and support

–1,942

–1,956

–1,971

–1

–1

Cost of cloud and software

–2,598

–2,614

–2,416

8

8

Cost of services

–2,669

–2,718

–2,539

5

7

Total cost of revenue

–5,266

–5,331

–4,954

6

8

Segment gross profit

14,653

14,755

14,009

5

5

Other segment expenses

–6,630

–6,724

–6,286

5

7

Segment profit

8,023

8,031

7,723

4

4

Margins






Cloud subscriptions and support gross margin (in %)

52

52

52

–1pp

–0pp

Gross margin (in %)

74

73

74

–0pp

–0pp

Segment margin (in %)

40

40

41

–0pp

–1pp

 

SAP Business Network


€ millions

Q1–Q4 2016

Q1–Q4 2015

? in %

? in %

Actual
Currency

Constant
Currency

Actual
Currency

Actual

Currency

Constant

Currency

Cloud subscriptions and support

1,595

1,589

1,337

19

19

Software licenses

0

0

–1

–61

–58

Software support

28

28

31

–10

–11

Software licenses and support

27

27

30

–9

–10

Cloud and software

1,622

1,617

1,367

19

18

Services

303

304

249

22

22

Total segment revenue

1,925

1,920

1,616

19

19

Cost of cloud subscriptions and support

–384

–385

–336

14

15

Cost of software licenses and support

–1

–1

–1

–4

0

Cost of cloud and software

–385

–386

–337

14

15

Cost of services

–246

–249

–183

34

36

Total cost of revenue

–631

–636

–520

21

22

Segment gross profit

1,295

1,285

1,095

18

17

Other segment expenses

–957

–967

–779

23

24

Segment profit

338

317

317

7

0

Margins






Cloud subscriptions and support gross margin (in %)

76

76

75

1pp

1pp

Gross margin (in %)

67

67

68

–1pp

–1pp

Segment margin (in %)

18

17

20

–2pp

–3pp


Due to rounding, numbers may not add up precisely.

 

Reconciliation from Non-IFRS Numbers to IFRS Numbers


€ millions, unless otherwise stated

Q4 2016

Q4 2015

? in %

IFRS

Adj.1)

Non-
IFRS1)

Currency

Impact2)

Non-IFRS
Constant
Currency2)

IFRS

Adj.1)

Non-
IFRS1)

IFRS

Non-
IFRS1)

Non-IFRS
Constant
urrency2)

Revenue Numbers












Cloud subscriptions and support

827

0

827

–11

816

631

1

632

31

31

29

Software licenses

2,177

0

2,177

–24

2,154

2,146

0

2,146

1

1

0

Software support

2,756

0

2,756

–20

2,737

2,600

0

2,600

6

6

5

Software licenses and support

4,933

0

4,934

–43

4,890

4,745

0

4,745

4

4

3

Cloud and software

5,760

0

5,761

–54

5,706

5,377

1

5,378

7

7

6

Services

963

0

963

–8

955

965

0

965

0

0

–1

Total revenue

6,724

0

6,724

–62

6,662

6,342

1

6,343

6

6

5













Operating Expense Numbers












Cost of cloud subscriptions and support

–371

65

–305



–304

70

–234

22

30


Cost of software licenses and support

–637

68

–570



–660

76

–583

–3

–2


Cost of cloud and software

–1,008

133

–875



–964

146

–818

5

7


Cost of services

–806

39

–767



–787

56

–731

2

5


Total cost of revenue

–1,814

172

–1,642



–1,751

203

–1,548

4

6


Gross profit

4,909

173

5,082



4,591

204

4,794

7

6


Research and development

–857

66

–791



–796

69

–727

8

9


Sales and marketing

–1,833

153

–1,680



–1,755

195

–1,560

4

8


General and administration

–277

36

–241



–281

55

–226

–1

7


Restructuring

–7

7

0



–59

59

0

–88

NA


Other operating income/expense, net

1

0

1



1

0

1

>100

>100


Total operating expenses

–4,787

435

–4,353

25

–4,328

–4,642

580

–4,061

3

7

7













Profit Numbers












Operating profit

1,936

435

2,371

–37

2,334

1,700

581

2,282

14

4

2

Other non-operating income/expense, net

–54

0

–54



–28

0

–28

91

91


Finance income

125

0

125



52

0

52

>100

>100


Finance costs

–59

0

–59



–76

0

–76

–23

–23


Financial income, net

67

0

67



–24

0

–24

<-100

<-100


Profit before tax

1,949

435

2,384



1,647

581

2,229

18

7


Income tax expense

–438

–127

–565



–369

–190

–559

19

1


Profit after tax

1,510

308

1,818



1,278

391

1,670

18

9


Attributable to owners of parent

1,513

308

1,821



1,281

391

1,673

18

9


Attributable to non-controlling interests

–2

0

–2



–3

0

–3

–18

–18














Key Ratios












Operating margin (in %)

28.8


35.3


35.0

26.8


36.0

2.0pp

–0.7pp

–0.9pp

Effective tax rate (in %)3)

22.5


23.7



22.4


25.1

0.1pp

–1.4pp


Earnings per share, basic (in €)

1.26


1.52



1.07


1.40

18

9



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

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

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

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


Due to rounding, numbers may not add up precisely.

 

€ millions, unless otherwise stated

Q1–Q4 2016

Q1–Q4 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

2,993

2

2,995

12

3,007

2,286

10

2,296

31

30

31

Software licenses

4,860

2

4,862

31

4,893

4,835

1

4,836

1

1

1

Software support

10,571

1

10,572

82

10,654

10,093

0

10,094

5

5

6

Software licenses and support

15,431

3

15,434

113

15,546

14,928

2

14,930

3

3

4

Cloud and software

18,424

5

18,428

125

18,553

17,214

11

17,226

7

7

8

Services

3,638

0

3,638

39

3,678

3,579

0

3,579

2

2

3

Total revenue

22,062

5

22,067

164

22,231

20,793

11

20,805

6

6

7













Operating Expense Numbers












Cost of cloud subscriptions and support

–1,301

247

–1,054



–1,022

232

–789

27

34


Cost of software licenses and support

–2,181

238

–1,943



–2,291

283

–2,008

–5

–3


Cost of cloud and software

–3,482

485

–2,997



–3,313

516

–2,797

5

7


Cost of services

–3,088

113

–2,975



–2,932

167

–2,765

5

8


Total cost of revenue

–6,570

598

–5,972



–6,245

683

–5,562

5

7


Gross profit

15,492

603

16,095



14,548

694

15,242

6

6


Research and development

–3,041

201

–2,840



–2,845

202

–2,643

7

7


Sales and marketing

–6,294

558

–5,736



–5,782

462

–5,320

9

8


General and administration

–1,005

119

–885



–1,048

116

–932

–4

–5


Restructuring

–28

28

0



–621

621

0

–96

NA


Other operating income/expense, net

–4

0

–4



1

0

1

<-100

<-100


Total operating expenses

–16,942

1,504

–15,438

–191

–15,629

–16,541

2,084

–14,457

2

7

8













Profit Numbers












Operating profit

5,121

1,508

6,629

–27

6,601

4,252

2,095

6,348

20

4

4

Other non-operating income/expense, net

–234

0

–234



–256

0

–256

–9

–9


Finance income

230

0

230



241

0

241

–4

–4


Finance costs

–268

0

–268



–246

0

–246

9

9


Financial income, net

–38

0

–38



–5

0

–5

>100

>100


Profit before tax

4,849

1,508

6,357



3,991

2,095

6,087

21

4


Income tax expense

–1,230

–477

–1,707



–935

–651

–1,586

32

8


Profit after tax

3,618

1,032

4,650



3,056

1,445

4,501

18

3


Attributable to owners of parent

3,631

1,032

4,663



3,064

1,445

4,509

18

3


Attributable to non-controlling interests

–13

0

–13



–8

0

–8

56

56














Key Ratios












Operating margin (in %)

23.2


30.0


29.7

20.5


30.5

2.8pp

–0.5pp

–0.8pp

Effective tax rate (in %)3)

25.4


26.9



23.4


26.1

1.9pp

0.8pp


Earnings per share, basic (in €)

3.03


3.89



2.56


3.77

18

3



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

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

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

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


Due to rounding, numbers may not add up precisely.

 

Non-IFRS Adjustments – Actuals and Estimates


€ millions

Estimated Amounts for

Full Year 2017

Q4 2016

Q1–Q4 2016

Q4 2015

Q1–Q4 2015

Operating profit (IFRS)


1,936

5,121

1,700

4,252

Revenue adjustments

<20

0

5

1

11

Adjustment for acquisition-related charges 

620 to 650

177

680

184

738

Adjustment for share-based payment expenses

770 to 1,020

251

795

338

724

Adjustment for restructuring

30 to 50

7

28

59

621

Operating expense adjustments


435

1,504

580

2,084

Operating profit adjustments


435

1,508

581

2,095

Operating profit (non-IFRS)


2,371

6,629

2,282

6,348

 

Non-IFRS Adjustments by Functional Areas


€ millions

Q4 2016

Q4 2015

IFRS

Acquisition-
Related

SBP1)

Restructuring

Non-IFRS

IFRS

Acquisition-
Related

SBP1)

Restructuring

Non-IFRS

Cost of cloud and software

–1,008

102

31

0

–875

–964

116

30

0

–818

Cost of services

–806

3

36

0

–767

–787

6

50

0

–731

Research and development

–857

3

63

0

–791

–796

2

67

0

–727

Sales and marketing

–1,833

67

86

0

–1,680

–1,755

58

137

0

–1,560

General and administration

–277

1

34

0

–241

–281

2

54

0

–226

Restructuring

–7

0

0

7

0

–59

0

0

59

0

Other operating income/expense, net

1

0

0

0

1

1

0

0

0

1

Total operating expenses

–4,787

177

251

7

–4,353

–4,642

184

338

59

–4,061

1) Share-based Payments

 

€ millions

Q1–Q4 2016

Q1–Q4 2015

IFRS

Acquisition-

Related

SBP1)

Restructuring

Non-IFRS

IFRS

Acquisition-
Related

SBP1)

Restructuring

Non-IFRS

Cost of cloud and software

–3,482

395

89

0

–2,997

–3,313

441

74

0

–2,797

Cost of services

–3,088

12

101

0

–2,975

–2,932

54

113

0

–2,765

Research and development

–3,041

10

191

0

–2,840

–2,845

36

166

0

–2,643

Sales and marketing

–6,294

257

301

0

–5,736

–5,782

202

260

0

–5,320

General and administration

–1,005

6

113

0

–885

–1,048

4

112

0

–932

Restructuring

–28

0

0

28

0

–621

0

0

621

0

Other operating income/expense, net

–4

0

0

0

–4

1

0

0

0

1

Total operating expenses

–16,942

680

795

28

–15,438

–16,541

738

724

621

–14,457

1) Share-based payments

 

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


€ millions

Q4 2016

Q1–Q4
2016

Q4 2015

Q1–Q4 2015

Cost of cloud and software

1

3

16

80

Cost of services

2

7

39

218

Research and development

3

7

–22

156

Sales and marketing

1

10

26

147

General and administration

0

1

0

20

Restructuring expenses

7

28

59

621

 

Revenue by Region (IFRS and Non-IFRS)


€ millions

Q4 2016

Q4 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

192

0

192

3

195

142

0

142

35

35

37

Americas

550

0

550

–11

539

434

0

435

27

26

24

APJ

85

0

85

–3

82

55

0

55

54

54

48

Cloud subscriptions and support revenue

827

0

827

–11

816

631

1

632

31

31

29













Cloud and software revenue by region







EMEA

2,694

0

2,694

24

2,717

2,477

1

2,478

9

9

10

Americas

2,154

0

2,154

–48

2,106

2,059

0

2,060

5

5

2

APJ

913

0

913

–30

883

841

0

841

9

9

5

Cloud and software revenue

5,760

0

5,761

–54

5,706

5,377

1

5,378

7

7

6













Total revenue by region







Germany

999

0

999

0

999

896

0

896

11

11

11

Rest of EMEA

2,124

0

2,124

27

2,151

2,008

1

2,008

6

6

7

Total EMEA

3,123

0

3,123

27

3,150

2,904

1

2,904

8

8

8

United States

2,051

0

2,051

–40

2,012

1,971

0

1,971

4

4

2

Rest of Americas

504

0

504

–15

488

494

0

494

2

2

–1

Total Americas

2,555

0

2,555

–55

2,500

2,465

0

2,466

4

4

1

Japan

242

0

242

–26

216

190

0

190

28

28

14

Rest of APJ

804

0

804

–8

796

783

0

783

3

3

2

Total APJ

1,046

0

1,046

–35

1,011

973

0

973

8

8

4

Total revenue 

6,724

0

6,724

–62

6,662

6,342

1

6,343

6

6

5


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

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


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


Due to rounding, numbers may not add up precisely.

 

€ millions

Q1–Q4 2016

Q1–Q4 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

703

0

704

14

717

507

1

508

39

38

41

Americas

2,000

1

2,001

1

2,002

1,579

8

1,587

27

26

26

APJ

290

0

290

–2

288

200

0

201

45

44

43

Cloud subscriptions and support revenue

2,993

2

2,995

12

3,007

2,286

10

2,296

31

30

31













Cloud and software revenue by region







EMEA

8,193

1

8,193

167

8,360

7,622

2

7,623

7

7

10

Americas

7,366

4

7,370

–7

7,364

6,929

9

6,938

6

6

6

APJ

2,865

0

2,865

–36

2,829

2,663

0

2,664

8

8

6

Cloud and software revenue

18,424

5

18,428

125

18,553

17,214

11

17,226

7

7

8













Total revenue by region







Germany

3,034

0

3,034

0

3,033

2,771

0

2,771

9

9

9

Rest of EMEA

6,721

1

6,722

194

6,915

6,409

2

6,411

5

5

8

Total EMEA

9,755

1

9,755

193

9,949

9,181

2

9,183

6

6

8

United States

7,167

4

7,172

–27

7,145

6,750

9

6,759

6

6

6

Rest of Americas

1,763

0

1,763

35

1,799

1,678

0

1,678

5

5

7

Total Americas

8,931

4

8,935

9

8,944

8,428

9

8,437

6

6

6

Japan

825

0

825

–88

737

667

0

668

24

24

10

Rest of APJ

2,552

0

2,552

50

2,601

2,517

0

2,517

1

1

3

Total APJ

3,377

0

3,377

–38

3,339

3,185

0

3,185

6

6

5

Total revenue 

22,062

5

22,067

164

22,231

20,793

11

20,805

6

6

7


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

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


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


Due to rounding, numbers may not add up precisely.

 

Employees by Region and Functional Areas



31.12.2016

31.12.2015

Full-time equivalents

EMEA

Americas

APJ

Total

EMEA

Americas

APJ

Total

Cloud and software

6,406

4,184

5,412

16,002

6,095

3,920

4,976

14,991

Services

6,535

4,119

3,967

14,621

6,482

3,812

3,574

13,868

Research and development

10,525

4,860

7,977

23,363

9,676

4,233

7,029

20,938

Sales and marketing

8,542

8,999

4,435

21,977

7,683

7,766

3,974

19,422

General and administration

2,629

1,746

1,018

5,393

2,434

1,653

937

5,024

Infrastructure

1,584

788

454

2,827

1,535

783

425

2,743

SAP Group (December 31)

36,222

24,696

23,265

84,183

33,906

22,166

20,914

76,986

Thereof acquisitions 1)

37

172

0

209

73

0

0

73

SAP Group (average twelve months)

34,932

23,532

22,145

80,609

33,561

21,832

19,788

75,180

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

 

Additional Information

General Remarks About this Quarterly Statement

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

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

2016 Integrated Report and Annual Report

SAP's 2016 Integrated Report and Annual Report to Shareholders and 2016 Annual Report on Form 20-F are scheduled to be published on February 28, 2017, and will be available for download at www.sap.com/investor.

Webcast

SAP senior management will host a press conference in Walldorf today at 10:00 AM (CET) /9:00 AM (GMT) / 4:00 AM (Eastern) / 1:00 AM (Pacific), followed by a financial analyst conference call at 2:00 PM (CET) / 1:00 PM (GMT) / 8:00 AM (Eastern) / 5:00 AM (Pacific). Both conferences will be webcast live on the Company's website at www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the full-year and quarterly results can be found at www.sap.com/investor.

About SAP

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

For more information, financial community only:



Stefan Gruber

+49 (6227) 7-44872

 investor@sap.com, CET

Follow SAP Investor Relations on Twitter at @sapinvestor.






For more information, press only:



Nicola Leske

+49 (6227) 7-50852

nicola.leske@sap.com, CET

Daniel Reinhardt

+49 (6227) 7-40201

daniel.reinhardt@sap.com, CET

Rajiv Sekhri

+49 (6227) 7-74871

 rajiv.sekhri@sap.com, CET




For customers interested in learning more about SAP products:



Global Customer Center:

+49 180 534-34-24


United States Only:

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


 

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.

© 2017 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. 

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

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

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/sap-hits-increased-2016-guidance---raises-2020-targets-300395351.html

SOURCE SAP SE


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