Exhibit 99.1
Walldorf, Germany – April 24, 2018
SAP SE (NYSE: SAP) today announced its preliminary financial results for the first quarter ended March 31, 2018.
Business Highlights
Financial Highlights
First Quarter 2018
New cloud bookings1 grew by 14% (25% at constant currencies) in the first quarter and reached €245 million. Cloud subscriptions and support revenue grew 18% year over year to €1.07 billion (IFRS), up 31% (non-IFRS at constant currencies). Software revenue was down 10% year over year to €625 million (IFRS), down 2% (non-IFRS at constant currencies). New cloud and software license order entry2 grew by 10% at constant currencies year over year in the first quarter. Cloud and software revenue grew 1% year over year to €4.35 billion (IFRS), up 9% (non-IFRS at constant currencies). Total revenue was flat year over year at €5.26 billion (IFRS), up 9% (non-IFRS at constant currencies).
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 as a percentage of total revenue grew 2 percentage points to 71% in the first quarter and thus exceeded 70% for the first time.
First quarter operating profit was up 52% year over year to €1.03 billion (IFRS), up 14% (non-IFRS at constant currencies). As announced in January 2018, the Company expects a positive revenue and profit impact from the adoption of IFRS 15 in 2018. In the first quarter, this positive impact on SAP’s operating profit was around €44 million. Earnings per share increased 37% to €0.59 (IFRS) and was down 1% to €0.73 (non-IFRS).
Operating cash flow for the first quarter was €2.58 billion, down 10% year over year. Free cash flow decreased 17% year over year to €2.15 billion. The decrease in free cash flow was mainly due to higher tax payments and a currency headwind as well as increased CapEx spending compared to the prior year. At the end of the first quarter, net liquidity was €546 million, an improvement of €1 billion year over year.
SAP S/4HANA
SAP’s next generation ERP S/4HANA sits at the core of the Intelligent Enterprise. With S/4HANA, customers can massively simplify their IT landscape, turn real-time data into actions and reinvent their business model for the digital economy across every industry. S/4HANA Cloud brings speed and ease of deployment. It is positioned as a leader in three cloud solution categories by industry analyst firm IDC: Midmarket ERP, Large Enterprise ERP and Finance & Accounting.
S/4HANA adoption grew to more than 8,300 customers, up 43% year over year. In the first quarter, approximately 400 additional customers signed up of which approximately 40% were net new. S/4HANA continues to be selected by world-class global companies, including Swiss Post in the quarter. A growing number of our customers are now adopting S/4HANA in the Cloud. MacMahon Holdings and Detecon International GmbH were among those who selected S/4HANA Cloud in the first quarter.
Customer Experience
SAP’s next generation customer experience solutions serve both B2C and B2B across a wide range of industries. They enable businesses to manage their front office across the entire spectrum from marketing to sales to services – seamlessly and in real-time. Businesses get a single view of their customer – across social, retail or e-commerce. In the age of heightened data privacy concerns, SAP also offers Gigya, a market leading solution for customer identity and access management. Gigya software manages customers’ profile, preference and consent, with customers maintaining control of their data at all times. On April 5th, 2018, SAP closed the acquisition of Callidus Software Inc (CallidusCloud®). SAP will fuse its customer experience solutions and S/4HANA fulfillment capabilities with CallidusCloud’s best-in-class Sales Performance Management (SPM) and Configure-Price-Quote (CPQ) solutions to deliver the most complete, end-to-end, fully cloud-based ‘Lead-to-Cash’ offering. This will enable customers to close deals faster, drive higher volume and bigger deals and accelerate sales productivity.
In the first quarter, SAP’s customer experience solutions achieved triple digit year-over-year growth in new cloud bookings. Jaguar Land Rover, Coca-Cola, and Unilever were among those that chose SAP’s customer experience solutions this quarter.
1 New cloud bookings is the total of all orders received in a given period the revenue from which is expected to be classified as cloud subscription and support revenue and that result from purchases by new customers and from incremental purchases by existing customers. Consequently, orders to renew existing contracts are not included in this metric. The order amount must be committed. Consequently, due to their pay-per-use nature, business network transaction fees which do not include a committed minimum consumption are not reflected in the bookings metric (e.g. SAP Ariba and SAP Fieldglass transaction-based fees). Amounts included in the measures are generally annualized (annualized contract value ACV).
2 New cloud and software license order entry is the total of new cloud order entry and software license order entry. The new cloud order entry metric is identical to the new cloud bookings metric defined above except that it considers the total contract value (TCV) of the orders where the new cloud bookings metric considers the orders’ annualized contract value (ACV). Software license order entry is the total of all orders received in a given period the revenue from which is expected to be classified as software license revenue. The support services commonly sold with the software licenses are not included in the software license order entry metric.
SAP Q1 2018 Quarterly Statement |
Human Capital Management
With SAP SuccessFactors and SAP Fieldglass, SAP delivers total workforce management across both permanent and contingent labor. Increasingly, HR is asked to include flexible workers in planning and to effectively establish a total talent supply. The SAP SuccessFactors suite is localized for 91 countries and 42 languages. SAP SuccessFactors Employee Central, which is the core of SAP’s HCM offering, ended the quarter with more than 2,400 customers and scored numerous competitive wins including CaixaBank, Reckitt Benckiser Group plc, HiPP, San Francisco Unified School District. and Intesa Sanpaolo.
SAP Leonardo
SAP Leonardo is about orchestrating innovative capabilities to rapidly create completely new ways of working and new business models. SAP Leonardo brings together deep process and industry expertise, advanced design thinking methodology and cutting edge software capabilities such as IoT, Big Data, Machine Learning, Analytics, and Blockchain. All of this is integrated on the SAP Cloud Platform with new technologies easily added as they emerge.
Airbus, DBS Informatik, and Thyssenkrupp are among many others that adopted SAP Leonardo solutions in the first quarter to redefine their businesses and become intelligent enterprises.
Business Networks
SAP is fueling the Networked Economy. With more than $1.9 trillion3 in global commerce annually transacted in more than 180 countries, the SAP Business Network is the largest commerce platform in the world. Leveraging the collaborative commerce capabilities of SAP Ariba, the flexible workforce management capabilities of SAP Fieldglass, effortless travel and expense processing with SAP Concur and the real-time in memory capabilities of the SAP HANA® platform, the SAP Business Network orchestrates commerce transactions across an entire value chain. It provides transparency and insight into supply chains that enable companies to ensure they are acting in ethically responsible ways.
In the first quarter, total revenue in the SAP Business Network segment was up 17% to €663 million at constant currencies year over year. Migros and Ralph Lauren chose SAP’s Business Network Solutions in the first quarter.
3 SAP Business Network commerce is the total commerce transacted on the Ariba, Concur and Fieldglass Networks in the trailing 12 months. Ariba commerce includes procurement and sourcing spend. Previously we only included the total commerce transacted on the Ariba Network in this metric.
SAP Q1 2018 Quarterly Statement |
Regional Revenue Performance in the First Quarter 2018
SAP had a solid performance in the EMEA region with cloud and software revenue increasing 6% (IFRS) and 9% (non-IFRS at constant currencies). Cloud subscriptions and support revenue was very strong and grew by 40% (IFRS) and 45% (non-IFRS at constant currencies) with Germany being a highlight. In addition, SAP had double-digit software revenue growth in the UK.
The Company had a strong performance in the Americas region with a significant currency headwind. Cloud and software revenue decreased by 5% (IFRS) and increased by 10% (non-IFRS at constant currencies). Cloud subscriptions and support revenue increased by 6% (IFRS) and 22% (non-IFRS at constant currencies) with Brazil being a highlight. In North America, the company had double digit software revenue growth.
In the APJ region, SAP had a strong performance considering the strong prior year period and currency headwind. Cloud and software revenue was flat (IFRS) and grew by 10% (non-IFRS at constant currencies). Cloud subscriptions and support revenue was exceptional and grew by 38% (IFRS) and 53% (non-IFRS at constant currencies) with China and Japan being highlights. For software revenue, Australia, China and India had an impressive quarter and grew by double digits.
SAP Q1 2018 Quarterly Statement |
Financial Results at a Glance
First Quarter 20181) | |||||||
| IFRS | Non-IFRS2) | |||||
€ million, unless otherwise stated | Q1 2018 | Q1 2017 | ∆ in % | Q1 2018 | Q1 2017 | ∆ in % | ∆ in % |
New Cloud Bookings3) | N/A | N/A | N/A | 245 | 215 | 14 | 25 |
Cloud subscriptions and support | 1,070 | 905 | 18 | 1,072 | 906 | 18 | 31 |
Software licenses and support | 3,281 | 3,422 | –4 | 3,281 | 3,422 | –4 | 4 |
Cloud and software | 4,351 | 4,328 | 1 | 4,353 | 4,328 | 1 | 9 |
Total revenue | 5,261 | 5,285 | 0 | 5,262 | 5,285 | 0 | 9 |
Share of predictable revenue (in %) | 71 | 69 | 2pp | 71 | 69 | 2pp |
|
Operating profit | 1,025 | 673 | 52 | 1,235 | 1,198 | 3 | 14 |
Profit after tax | 708 | 530 | 33 | 868 | 887 | –2 |
|
Basic earnings per share (€) | 0.59 | 0.43 | 37 | 0.73 | 0.73 | –1 |
|
Number of employees (FTE, March 31) | 91,120 | 85,751 | 6 | N/A | N/A | N/A | N/A |
1) All figures are unaudited.
2) For a detailed description of SAP’s non-IFRS measures see Explanation of Non-IFRS Measures online. For a breakdown of the individual adjustments see table “Non-IFRS Adjustments by Functional Areas” in this Quarterly Statement.
3) As this is an order entry metric, there is no IFRS equivalent.
Due to rounding, numbers may not add up precisely.
SAP Q1 2018 Quarterly Statement |
Business Outlook 2018
SAP is raising its outlook to reflect the closing of the Callidus acquisition on April 5, 2018 as well as the strong operating profit performance in the first quarter. For the full year 2018, the Company now expects:
· Non-IFRS cloud subscriptions and support revenue to be in a range of €4.95 billion - €5.15 billion at constant currencies (2017: €3.77 billion), up 31% – 36.5% at constant currencies. The previous range was €4.8 - €5.0 billion. Callidus is expected to contribute approximately €150 million.
· Non-IFRS cloud and software revenue to be in a range of €20.85 – €21.25 billion at constant currencies (2017: €19.55 billion), up 6.5% – 8.5% at constant currencies. The previous range was €20.7 – €21.1 billion. Callidus is expected to contribute approximately €150 million.
· Non-IFRS total revenue to be in a range of €24.80 billion - €25.30 billion at constant currencies (2017: €23.46 billion), up 5.5% – 7.5% at constant currencies. The previous range was €24.6 – €25.1 billion. Callidus is expected to contribute approximately €200 million.
· Non-IFRS operating profit to be in a range of €7.35 billion - €7.50 billion at constant currencies (2017: €6.77 billion), up 8.5% – 11% at constant currencies. The previous range was €7.3 – €7.5 billion. Callidus is expected to contribute approximately €10 million.
While SAP’s full-year 2018 business outlook is at constant currencies, actual currency reported figures are expected to be impacted by currency exchange rate fluctuations as the Company progresses through the year. See the table below for the Q2 and FY 2018 expected currency impacts.
Expected Currency Impact Based on Early April Exchange Rates for 2018 | ||
In percentage points | Q2 | FY |
Cloud subscriptions and support | -10 to -12 | -7 to -9 |
Cloud and software | -6 to -8 | -4 to -6 |
Operating profit | -6 to -8 | -4 to -6 |
IFRS 15 Impact
As of January 1, 2018, SAP changed several of its accounting policies to adopt IFRS 15 ‘Revenue from Contracts with Customers’. Under the IFRS 15 adoption method chosen by SAP prior years are not restated to conform to the new policies. Consequently, the year-over-year growth of revenue and profit in 2018 will be impacted by the new policies.
As already announced in SAP’s Q4 2017 Quarterly Statement, the Company expects the full year 2018 impact of the policy change4 on revenue, operating expenses and profit to be as follows:
· Revenues are expected to experience a benefit of substantially less than €0.1 billion with most of the difference resulting from exercises of customer software purchase options granted in prior years which result in software revenue.
· Operating expenses are expected to benefit, in cost of sales and marketing, in the amount of approximately €0.2 billion from higher capitalization of sales commissions. Other policy changes will weigh on operating expenses with an additional cost of revenue of substantially less than €0.1 billion.
· The above-mentioned effects will result in a net positive impact on operating profit of approximately €0.2 billion.
Details regarding the IFRS 15 impact in the first quarter can be found on page 21 in the appendix.
4 “Impact of the accounting policy change” means the difference between a revenue and profit measure determined under SAP’s new IFRS 15-based policies and the respective measure as it would stand had our previous accounting policies continued to apply.
SAP Q1 2018 Quarterly Statement |
Additional Information
For a more detailed description of all of SAP’s non-IFRS measures and their limitations as well as our constant currency and free cash flow figures see Explanation of Non-IFRS Measures online.
Webcast
SAP senior management will host a financial analyst conference call at 2:00 PM (CET) / 1:00 PM (GMT) / 8:00 AM (Eastern) / 5:00 AM (Pacific). The call will be webcast live on the Company’s website at www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the first quarter results can be found at www.sap.com/investor.
About SAP
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 388,000 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:
Rajiv Sekhri | +49 (6227) 7-74871 | rajiv.sekhri@sap.com, CET |
Daniel Reinhardt | +49 (6227) 7-40201 | daniel.reinhardt@sap.com, CET |
For customers interested in learning more about SAP products:
Global Customer Center: | +49 180 534-34-24 |
United States Only: | +1 (800) 872-1SAP (+1-800-872-1727) |
Note to editors:
To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels. To view video stories on diverse topics, visit www.sap-tv.com. From this site, you can embed videos into your own Web pages, share video via e-mail links and subscribe to RSS feeds from SAP TV.
SAP Q1 2018 Quarterly Statement |
Financial and Non-Financial Key Facts (IFRS and Non-IFRS)
|
|
|
|
|
|
|
|
|
|
|
|
|
€ millions, unless otherwise stated |
| Q1 |
| Q2 |
| Q3 |
| Q4 |
| TY |
| Q1 |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Cloud subscriptions and support (IFRS) |
| 905 |
| 932 |
| 937 |
| 995 |
| 3,769 |
| 1,070 |
Cloud subscriptions and support (non-IFRS) |
| 906 |
| 932 |
| 938 |
| 997 |
| 3,771 |
| 1,072 |
% change – yoy |
| 34 |
| 29 |
| 22 |
| 21 |
| 26 |
| 18 |
% change constant currency – yoy |
| 30 |
| 27 |
| 27 |
| 28 |
| 28 |
| 31 |
Software licenses (IFRS) |
| 691 |
| 1,090 |
| 1,033 |
| 2,058 |
| 4,872 |
| 625 |
Software licenses (non-IFRS) |
| 691 |
| 1,090 |
| 1,033 |
| 2,058 |
| 4,872 |
| 625 |
% change – yoy |
| 13 |
| 5 |
| 0 |
| –5 |
| 0 |
| –10 |
% change constant currency – yoy |
| 10 |
| 4 |
| 3 |
| –1 |
| 2 |
| –2 |
Software support (IFRS) |
| 2,731 |
| 2,736 |
| 2,687 |
| 2,754 |
| 10,908 |
| 2,656 |
Software support (non-IFRS) |
| 2,731 |
| 2,736 |
| 2,687 |
| 2,754 |
| 10,908 |
| 2,656 |
% change – yoy |
| 7 |
| 5 |
| 1 |
| 0 |
| 3 |
| –3 |
% change constant currency – yoy |
| 3 |
| 4 |
| 4 |
| 5 |
| 4 |
| 5 |
Software licenses and support (IFRS) |
| 3,422 |
| 3,826 |
| 3,720 |
| 4,813 |
| 15,780 |
| 3,281 |
Software licenses and support (non-IFRS) |
| 3,422 |
| 3,826 |
| 3,720 |
| 4,813 |
| 15,781 |
| 3,281 |
% change – yoy |
| 8 |
| 5 |
| 1 |
| –2 |
| 2 |
| –4 |
% change constant currency – yoy |
| 5 |
| 4 |
| 4 |
| 2 |
| 4 |
| 4 |
Cloud and software (IFRS) |
| 4,328 |
| 4,757 |
| 4,657 |
| 5,807 |
| 19,549 |
| 4,351 |
Cloud and software (non-IFRS) |
| 4,328 |
| 4,758 |
| 4,658 |
| 5,809 |
| 19,552 |
| 4,353 |
% change – yoy |
| 12 |
| 9 |
| 5 |
| 1 |
| 6 |
| 1 |
% change constant currency – yoy |
| 9 |
| 8 |
| 8 |
| 6 |
| 8 |
| 9 |
Total revenue (IFRS) |
| 5,285 |
| 5,782 |
| 5,590 |
| 6,805 |
| 23,461 |
| 5,261 |
Total revenue (non-IFRS) |
| 5,285 |
| 5,782 |
| 5,590 |
| 6,807 |
| 23,464 |
| 5,262 |
% change – yoy |
| 12 |
| 10 |
| 4 |
| 1 |
| 6 |
| 0 |
% change constant currency – yoy |
| 8 |
| 9 |
| 8 |
| 6 |
| 8 |
| 9 |
Share of predictable revenue (IFRS, in %) |
| 69 |
| 63 |
| 65 |
| 55 |
| 63 |
| 71 |
Share of predictable revenue (non-IFRS, in %) |
| 69 |
| 63 |
| 65 |
| 55 |
| 63 |
| 71 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profits |
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (IFRS) |
| 673 |
| 926 |
| 1,314 |
| 1,964 |
| 4,877 |
| 1,025 |
Operating profit (non-IFRS) |
| 1,198 |
| 1,570 |
| 1,637 |
| 2,364 |
| 6,769 |
| 1,235 |
% change |
| 8 |
| 4 |
| 0 |
| 0 |
| 2 |
| 3 |
% change constant currency |
| 2 |
| 3 |
| 4 |
| 6 |
| 4 |
| 14 |
Profit after tax (IFRS) |
| 530 |
| 666 |
| 993 |
| 1,867 |
| 4,056 |
| 708 |
Profit after tax (non-IFRS) |
| 887 |
| 1,120 |
| 1,214 |
| 2,136 |
| 5,356 |
| 868 |
% change |
| 16 |
| 14 |
| 11 |
| 17 |
| 15 |
| –2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Margins |
|
|
|
|
|
|
|
|
|
|
|
|
Cloud subscriptions and support gross margin (IFRS, in %) |
| 57.7 |
| 56.0 |
| 54.8 |
| 55.4 |
| 56.0 |
| 59.3 |
Cloud subscriptions and support gross margin (non-IFRS, in %) |
| 64.6 |
| 62.4 |
| 60.8 |
| 61.0 |
| 62.2 |
| 63.2 |
Software license and support gross margin (IFRS, in %) |
| 83.3 |
| 85.3 |
| 86.2 |
| 87.8 |
| 85.8 |
| 85.7 |
Software license and support gross margin (non-IFRS, in %) |
| 85.1 |
| 86.6 |
| 87.3 |
| 88.6 |
| 87.0 |
| 86.4 |
Cloud and software gross margin (IFRS, in %) |
| 77.9 |
| 79.6 |
| 79.9 |
| 82.2 |
| 80.1 |
| 79.2 |
Cloud and software gross margin (non-IFRS, in %) |
| 80.8 |
| 81.8 |
| 82.0 |
| 83.9 |
| 82.2 |
| 80.7 |
Gross margin (IFRS, in %) |
| 66.7 |
| 69.0 |
| 70.1 |
| 73.2 |
| 69.9 |
| 68.5 |
Gross margin (non-IFRS, in %) |
| 69.9 |
| 71.5 |
| 72.5 |
| 75.2 |
| 72.5 |
| 70.2 |
Operating margin (IFRS, in %) |
| 12.7 |
| 16.0 |
| 23.5 |
| 28.9 |
| 20.8 |
| 19.5 |
Operating margin (non-IFRS, in %) |
| 22.7 |
| 27.2 |
| 29.3 |
| 34.7 |
| 28.9 |
| 23.5 |
AT&S segment – Cloud subscriptions and support gross margin (in %) |
| 52 |
| 49 |
| 47 |
| 47 |
| 49 |
| 51 |
AT&S segment – Gross margin (in %) |
| 70 |
| 72 |
| 73 |
| 76 |
| 73 |
| 70 |
AT&S segment – Segment margin (in %) |
| 34 |
| 39 |
| 41 |
| 46 |
| 40 |
| 34 |
SAP Q1 2018 Quarterly Statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
€ millions, unless otherwise stated |
| Q1 |
| Q2 |
| Q3 |
| Q4 |
| TY |
| Q1 |
SAP BN segment – Cloud subscriptions and support gross margin (in %) |
| 77 |
| 77 |
| 76 |
| 77 |
| 77 |
| 77 |
SAP BN segment – Gross margin (in %) |
| 67 |
| 68 |
| 68 |
| 68 |
| 68 |
| 69 |
SAP BN segment – Segment margin (in %) |
| 16 |
| 17 |
| 17 |
| 17 |
| 17 |
| 16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Profit Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (IFRS, in %) |
| 20.6 |
| 26.6 |
| 28.6 |
| 9.4 |
| 19.3 |
| 28.5 |
Effective tax rate (non-IFRS, in %) |
| 25.7 |
| 27.8 |
| 29.2 |
| 13.2 |
| 22.6 |
| 27.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic (IFRS, in €) |
| 0.43 |
| 0.56 |
| 0.82 |
| 1.55 |
| 3.36 |
| 0.59 |
Earnings per share, basic (non-IFRS, in €) |
| 0.73 |
| 0.94 |
| 1.01 |
| 1.77 |
| 4.44 |
| 0.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Order Entry |
|
|
|
|
|
|
|
|
|
|
|
|
New Cloud Bookings |
| 215 |
| 340 |
| 302 |
| 591 |
| 1,448 |
| 245 |
Contract liabilities/deferred income (current) |
| 6,215 |
| 4,898 |
| 3,531 |
| 2,771 |
| 2,771 |
| 5,041 |
Orders – Number of on-premise software deals (in transactions) |
| 13,115 |
| 14,361 |
| 13,889 |
| 17,782 |
| 59,147 |
| 13,549 |
Share of orders greater than € 5 million based on total software order entry volume (in %) |
| 27 |
| 31 |
| 29 |
| 30 |
| 30 |
| 18 |
Share of orders smaller than € 1 million based on total software order entry volume (in %) |
| 46 |
| 40 |
| 41 |
| 37 |
| 40 |
| 50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity and Cash Flow |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flows from operating activities |
| 2,872 |
| 642 |
| 611 |
| 920 |
| 5,045 |
| 2,578 |
Free cash flow |
| 2,581 |
| 322 |
| 258 |
| 609 |
| 3,770 |
| 2,151 |
% of total revenue (IFRS) |
| 49 |
| 6 |
| 5 |
| 9 |
| 16 |
| 41 |
% of profit after tax (IFRS) |
| 487 |
| 48 |
| 26 |
| 33 |
| 93 |
| 304 |
Group liquidity, gross |
| 7,345 |
| 4,927 |
| 4,960 |
| 4,785 |
| 4,785 |
| 8,270 |
Group debt |
| –7,805 |
| –6,716 |
| –6,667 |
| –6,264 |
| –6,264 |
| –7,723 |
Group liquidity, net |
| –460 |
| –1,789 |
| –1,706 |
| –1,479 |
| –1,479 |
| 546 |
Days’ sales outstanding (DSO, in days)1) |
| 72 |
| 72 |
| 72 |
| 70 |
| 70 |
| 68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Position |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
| 5,937 |
| 4,236 |
| 4,220 |
| 4,011 |
| 4,011 |
| 7,598 |
Goodwill |
| 23,091 |
| 21,949 |
| 21,353 |
| 21,267 |
| 21,267 |
| 20,854 |
Total assets |
| 47,724 |
| 42,900 |
| 41,430 |
| 42,506 |
| 42,506 |
| 45,473 |
Equity ratio (total equity in % of total assets) |
| 56 |
| 57 |
| 59 |
| 60 |
| 60 |
| 56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Financials |
|
|
|
|
|
|
|
|
|
|
|
|
Number of employees (quarter end)2) |
| 85,751 |
| 87,114 |
| 87,874 |
| 88,543 |
| 88,543 |
| 91,120 |
Employee retention (in %, rolling 12 months) |
| 94.1 |
| 94.3 |
| 94.2 |
| 94.6 |
| 94.6 |
| 95.9 |
Women in management (in %, quarter end) |
| 24.8 |
| 25.0 |
| 25.2 |
| 25.4 |
| 25.4 |
| 25.6 |
Greenhouse gas emissions (in kilotons) |
| 100 |
| 55 |
| 80 |
| 90 |
| 325 |
| 100 |
1) Days’ sales outstanding measures the average number of days from the raised invoice to cash receipt from the customer. We calculate DSO by dividing the average invoiced trade receivables balance of the last 12 months by the average monthly cash receipt of the last 12 months.
2) In full-time equivalents.
Due to rounding, numbers may not add up precisely.
SAP Q1 2018 Quarterly Statement |
Consolidated Income Statements of SAP Group (IFRS) – Quarter
|
|
|
|
|
|
|
|
|
|
|
|
|
€ millions, unless otherwise stated
|
|
|
|
|
|
|
| Q1 2018 |
| Q1 2017 |
| D in% |
Cloud subscriptions and support |
|
|
|
|
|
|
| 1,070 |
| 905 |
| 18 |
Software licenses |
|
|
|
|
|
|
| 625 |
| 691 |
| –10 |
Software support |
|
|
|
|
|
|
| 2,656 |
| 2,731 |
| –3 |
Software licenses and support |
|
|
|
|
|
|
| 3,281 |
| 3,422 |
| –4 |
Cloud and software |
|
|
|
|
|
|
| 4,351 |
| 4,328 |
| 1 |
Services |
|
|
|
|
|
|
| 909 |
| 957 |
| –5 |
Total revenue |
|
|
|
|
|
|
| 5,261 |
| 5,285 |
| 0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of cloud subscriptions and support |
|
|
|
|
|
|
| –435 |
| –383 |
| 14 |
Cost of software licenses and support |
|
|
|
|
|
|
| –470 |
| –571 |
| –18 |
Cost of cloud and software |
|
|
|
|
|
|
| –905 |
| –954 |
| –5 |
Cost of services |
|
|
|
|
|
|
| –751 |
| –806 |
| –7 |
Total cost of revenue |
|
|
|
|
|
|
| –1,656 |
| –1,760 |
| –6 |
Gross profit |
|
|
|
|
|
|
| 3,605 |
| 3,524 |
| 2 |
Research and development |
|
|
|
|
|
|
| –814 |
| –852 |
| –4 |
Sales and marketing |
|
|
|
|
|
|
| –1,515 |
| –1,708 |
| –11 |
General and administration |
|
|
|
|
|
|
| –231 |
| –291 |
| –21 |
Restructuring |
|
|
|
|
|
|
| –11 |
| –4 |
| >100 |
Other operating income/expense, net |
|
|
|
|
|
|
| –10 |
| 4 |
| <-100 |
Total operating expenses |
|
|
|
|
|
|
| –4,236 |
| –4,612 |
| –8 |
Operating profit
|
|
|
|
|
|
|
| 1,025 |
| 673 |
| 52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-operating income/expense, net |
|
|
|
|
|
|
| –9 |
| –18 |
| –49 |
Finance income |
|
|
|
|
|
|
| 43 |
| 107 |
| –60 |
Finance costs |
|
|
|
|
|
|
| –69 |
| –94 |
| –27 |
Financial income, net |
|
|
|
|
|
|
| –25 |
| 13 |
| <-100 |
Profit before tax |
|
|
|
|
|
|
| 990 |
| 668 |
| 48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
|
|
|
|
| –282 |
| –138 |
| >100 |
Profit after tax |
|
|
|
|
|
|
| 708 |
| 530 |
| 33 |
Attributable to owners of parent |
|
|
|
|
|
|
| 708 |
| 521 |
| 36 |
Attributable to non-controlling interests
|
|
|
|
|
|
|
| –1 |
| 9 |
| <-100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic (in €)1)
|
|
|
|
|
|
|
| 0.59 |
| 0.43 |
| 37 |
Earnings per share, diluted (in €)1)
|
|
|
|
|
|
|
| 0.59 |
| 0.43 |
| 37 |
1) For the three months ended March 31, 2018 and 2017, the weighted average number of shares was 1,193 million (diluted 1,194 million) and 1,199 million (diluted: 1,199 million), respectively (treasury stock excluded).
Due to rounding, numbers may not add up precisely.
SAP Q1 2018 Quarterly Statement |
Consolidated Statements of Financial Position of SAP Group (IFRS)
as at March 31, 2018 and December 31, 2017 | ||||
€ millions |
| 2018 |
| 20171) |
Cash and cash equivalents |
| 7,598 |
| 4,011 |
Other financial assets |
| 858 |
| 990 |
Trade and other receivables |
| 5,433 |
| 5,899 |
Other non-financial assets |
| 850 |
| 725 |
Tax assets |
| 341 |
| 306 |
Total current assets |
| 15,079 |
| 11,930 |
Goodwill |
| 20,854 |
| 21,267 |
Intangible assets |
| 2,838 |
| 2,967 |
Property, plant, and equipment |
| 3,044 |
| 2,967 |
Other financial assets |
| 1,158 |
| 1,155 |
Trade and other receivables |
| 111 |
| 118 |
Other non-financial assets |
| 818 |
| 621 |
Tax assets |
| 442 |
| 443 |
Deferred tax assets |
| 1,128 |
| 1,037 |
Total non-current assets |
| 30,393 |
| 30,575 |
Total assets |
| 45,473 |
| 42,506 |
|
|
|
|
|
€ millions |
| 2018 |
| 2017 |
Trade and other payables |
| 1,066 |
| 1,151 |
Tax liabilities |
| 624 |
| 597 |
Financial liabilities |
| 1,594 |
| 1,561 |
Other non-financial liabilities |
| 2,981 |
| 3,946 |
Provisions |
| 123 |
| 184 |
Contract liabilities / deferred income |
| 5,041 |
| 2,771 |
Total current liabilities |
| 11,430 |
| 10,210 |
Trade and other payables |
| 113 |
| 119 |
Tax liabilities |
| 490 |
| 470 |
Financial liabilities |
| 6,479 |
| 5,034 |
Other non-financial liabilities |
| 558 |
| 503 |
Provisions |
| 425 |
| 303 |
Deferred tax liabilities |
| 229 |
| 248 |
Contract liabilities / deferred income |
| 62 |
| 79 |
Total non-current liabilities |
| 8,355 |
| 6,756 |
Total liabilities |
| 19,785 |
| 16,966 |
Issued capital |
| 1,229 |
| 1,229 |
Share premium |
| 573 |
| 570 |
Retained earnings |
| 25,744 |
| 24,794 |
Other components of equity |
| –297 |
| 508 |
Treasury shares |
| –1,591 |
| –1,591 |
Equity attributable to owners of parent |
| 25,657 |
| 25,509 |
|
|
|
|
|
Non-controlling interests |
| 30 |
| 31 |
Total equity |
| 25,688 |
| 25,540 |
Total equity and liabilities |
| 45,473 |
| 42,506 |
1) Under the adoption methods we chose for IFRS 15 and IFRS 9 prior years are not restated to conform to the new policies. See section Impact of Changes in Accounting Policies in this Quarterly Statement.
Due to rounding, numbers may not add up precisely.
SAP Q1 2018 Quarterly Statement |
|
Consolidated Statements of Cash Flows of SAP Group (IFRS)
€ millions |
| Q1 2018 |
| Q1 2017 |
Profit after tax |
| 708 |
| 530 |
Adjustments to reconcile profit after tax to net cash flows from operating activities: |
|
|
|
|
Depreciation and amortization |
| 303 |
| 320 |
Income tax expense |
| 282 |
| 138 |
Financial income, net |
| 25 |
| –13 |
Decrease/increase in sales and bad debt allowances on trade receivables |
| –25 |
| 15 |
Other adjustments for non-cash items |
| 3 |
| –13 |
Decrease/increase in trade and other receivables |
| 942 |
| –633 |
Decrease/increase in other assets |
| –152 |
| –243 |
Decrease/increase in trade payables, provisions, and other liabilities |
| –742 |
| –596 |
Decrease/increase in contract liabilities/deferred income |
| 1,683 |
| 3,730 |
Interest paid |
| –55 |
| –58 |
Interest received |
| 25 |
| 17 |
Income taxes paid, net of refunds |
| –420 |
| –323 |
Net cash flows from operating activities |
| 2,578 |
| 2,872 |
Business combinations, net of cash and cash equivalents acquired |
| –17 |
| –22 |
Purchase of intangible assets or property, plant, and equipment |
| –427 |
| –291 |
Proceeds from sales of intangible assets or property, plant, and equipment |
| 14 |
| 27 |
Purchase of equity or debt instruments of other entities |
| –378 |
| –981 |
Proceeds from sales of equity or debt instruments of other entities |
| 439 |
| 624 |
Net cash flows from investing activities |
| –369 |
| –644 |
Proceeds from borrowings |
| 1,494 |
| 4 |
Repayments of borrowings |
| –12 |
| –3 |
Net cash flows from financing activities |
| 1,482 |
| 1 |
Effect of foreign currency rates on cash and cash equivalents |
| –103 |
| 5 |
Net decrease/increase in cash and cash equivalents |
| 3,587 |
| 2,234 |
Cash and cash equivalents at the beginning of the period |
| 4,011 |
| 3,702 |
Cash and cash equivalents at the end of the period |
| 7,598 |
| 5,937 |
Due to rounding, numbers may not add up precisely. |
|
|
|
|
|
| SAP Q1 2018 Quarterly Statement |
Segment Reporting – Quarter
Applications, Technology & Services
€ millions, unless otherwise stated |
| Q1 2018 | Q1 2017 | ∆ in % | ∆ in % |
|
|
|
|
|
|
| Actual | Constant | Actual | Actual | Constant |
| Currency | Currency | Currency | Currency | Currency |
|
|
|
|
|
|
Cloud subscriptions and support – SaaS/PaaS1) | 484 | 530 | 365 | 32 | 45 |
Cloud subscriptions and support – IaaS2) | 104 | 115 | 77 | 36 | 50 |
Cloud subscriptions and support | 588 | 645 | 442 | 33 | 46 |
Software licenses | 625 | 676 | 691 | –10 | –2 |
Software support | 2,652 | 2,868 | 2,726 | –3 | 5 |
Software licenses and support | 3,277 | 3,544 | 3,417 | –4 | 4 |
Cloud and software | 3,865 | 4,189 | 3,859 | 0 | 9 |
Services | 798 | 880 | 851 | –6 | 3 |
Total segment revenue | 4,663 | 5,068 | 4,709 | –1 | 8 |
Cost of cloud subscriptions and support – SaaS/PaaS1) | –192 | –211 | –145 | 33 | 46 |
Cost of cloud subscriptions and support – IaaS2) | –96 | –103 | –68 | 41 | 51 |
Cost of cloud subscriptions and support | –288 | –314 | –213 | 35 | 48 |
Cost of software licenses and support | –444 | –478 | –508 | –13 | –6 |
Cost of cloud and software | –732 | –791 | –721 | 2 | 10 |
Cost of services | –657 | –709 | –685 | –4 | 3 |
Total cost of revenue | –1,389 | –1,500 | –1,406 | –1 | 7 |
Segment gross profit | 3,274 | 3,568 | 3,303 | –1 | 8 |
Other segment expenses | –1,669 | –1,801 | –1,708 | –2 | 5 |
Segment profit | 1,605 | 1,767 | 1,595 | 1 | 11 |
Margins |
|
|
|
|
|
Cloud subscriptions and support gross margin – SaaS/PaaS1) (in %) | 60 | 60 | 60 | —0pp | –0pp |
Cloud subscriptions and support gross margin – IaaS2) (in %) | 8 | 11 | 11 | —3pp | –0pp |
Cloud subscriptions and support gross margin (in %) | 51 | 51 | 52 | —1pp | –1pp |
Gross margin (in %) | 70 | 70 | 70 | 0pp | 0pp |
Segment margin (in %) | 34 | 35 | 34 | 1pp | 1pp |
1) Software as a Service/Platform as a Service
2) Infrastructure as a Service
Due to rounding, numbers may not add up precisely.
SAP Q1 2018 Quarterly Statement |
SAP Business Network
€ millions, unless otherwise stated |
| Q1 2018 | Q1 2017 | ∆ in % | ∆ in % |
|
|
|
|
|
|
|
|
|
|
|
|
| Actual | Constant | Actual | Actual | Constant |
| Currency | Currency | Currency | Currency | Currency |
|
|
|
|
|
|
Cloud subscriptions and support — SaaS/PaaS1) | 483 | 543 | 464 | 4 | 17 |
Cloud subscriptions and support — IaaS2) | 0 | 0 | 0 | NA | NA |
Cloud subscriptions and support | 483 | 543 | 464 | 4 | 17 |
Software licenses | 0 | 0 | 0 | NA | NA |
Software support | 4 | 4 | 6 | –33 | –23 |
Software licenses and support | 4 | 4 | 6 | –33 | –23 |
Cloud and software | 487 | 548 | 469 | 4 | 17 |
Services | 103 | 116 | 98 | 5 | 18 |
Total segment revenue | 590 | 663 | 567 | 4 | 17 |
Cost of cloud subscriptions and support – SaaS/PaaS1) | –110 | –123 | –107 | 2 | 15 |
Cost of cloud subscriptions and support – IaaS2) | 0 | 0 | 0 | NA | NA |
Cost of cloud subscriptions and support | –110 | –123 | –107 | 2 | 15 |
Cost of software licenses and support | –2 | –2 | –1 | >100 | >100 |
Cost of cloud and software | –111 | –125 | –108 | 3 | 16 |
Cost of services | –74 | –82 | –77 | –3 | 7 |
Total cost of revenue | –186 | –207 | –184 | 1 | 12 |
Segment gross profit | 404 | 456 | 383 | 6 | 19 |
Other segment expenses | –308 | –345 | –291 | 6 | 18 |
Segment profit | 97 | 111 | 92 | 5 | 21 |
Margins |
|
|
|
|
|
Cloud subscriptions and support gross margin – SaaS/PaaS1) (in %) | 77 | 77 | 77 | 0pp | 0pp |
Cloud subscriptions and support gross margin – IaaS2) (in %) | NA | NA | NA | NA | NA |
Cloud subscriptions and support gross margin (in %) | 77 | 77 | 77 | 0pp | 0pp |
Gross margin (in %) | 69 | 69 | 67 | 1pp | 1pp |
Segment margin (in %) | 16 | 17 | 16 | 0pp | 1pp |
1) Software as a Service/Platform as a Service
2) Infrastructure as a Service
Due to rounding, numbers may not add up precisely.
SAP Q1 2018 Quarterly Statement |
Reconciliation of Cloud Subscription Revenues and Margins
€ millions, unless otherwise stated |
|
| Q1 2018 | Q1 2017 | ∆ in % | ∆ in % |
| Actual Currency | Constant Currency | Actual Currency | Actual Currency | Constant Currency | |
Cloud subscriptions and support revenue – SaaS/PaaS1) | SAP Business Network segment | 483 | 543 | 464 | 4 | 17 |
Other | 484 | 531 | 365 | 33 | 45 | |
Total | 967 | 1,074 | 829 | 17 | 30 | |
Cloud subscriptions and support revenue – IaaS2) |
| 104 | 115 | 77 | 36 | 50 |
Cloud subscriptions and support revenue |
| 1,072 | 1,189 | 906 | 18 | 31 |
Cloud subscriptions and support gross margin – SaaS/PaaS1) (in %) | SAP Business Network segment | 77 | 77 | 77 | 0pp | 0pp |
Other | 61 | 60 | 60 | 1pp | 0pp | |
Total | 69 | 69 | 70 | –0pp | –1pp | |
Cloud subscriptions and support gross margin – IaaS2) (in %) |
| 8 | 11 | 11 | –3pp | –0pp |
Cloud subscriptions and support gross margin (in %) |
| 63 | 63 | 65 | –1pp | –1pp |
1) Software as a Service/Platform as a Service
2) Infrastructure as a Service
Due to rounding, numbers may not add up precisely.
SAP Q1 2018 Quarterly Statement |
Reconciliation from Non-IFRS Numbers to IFRS Numbers – Quarter
€ millions, unless otherwise stated |
|
|
|
| Q1 2018 |
|
| Q1 2017 |
|
| D in % |
| IFRS | Adj.1) | Non- | Currency Impact2) | Non-IFRS | IFRS | Adj.1) | Non-IFRS1) | IFRS | Non- | Non-IFRS |
Revenue Numbers |
|
|
|
|
|
|
|
|
|
|
|
Cloud subscriptions and support | 1,070 | 2 | 1,072 | 117 | 1,189 | 905 | 0 | 906 | 18 | 18 | 31 |
Software licenses | 625 | 0 | 625 | 51 | 676 | 691 | 0 | 691 | –10 | –10 | –2 |
Software support | 2,656 | 0 | 2,656 | 216 | 2,873 | 2,731 | 0 | 2,731 | –3 | –3 | 5 |
Software licenses and support | 3,281 | 0 | 3,281 | 268 | 3,548 | 3,422 | 0 | 3,422 | –4 | –4 | 4 |
Cloud and software | 4,351 | 2 | 4,353 | 384 | 4,737 | 4,328 | 0 | 4,328 | 1 | 1 | 9 |
Services | 909 | 0 | 909 | 95 | 1,005 | 957 | 0 | 957 | –5 | –5 | 5 |
Total revenue | 5,261 | 2 | 5,262 | 479 | 5,742 | 5,285 | 0 | 5,285 | 0 | 0 | 9 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expense Numbers |
|
|
|
|
|
|
|
|
|
|
|
Cost of cloud subscriptions and support | –435 | 41 | –394 |
|
| –383 | 63 | –320 | 14 | 23 |
|
Cost of software licenses and support | –470 | 25 | –445 |
|
| –571 | 62 | –510 | –18 | –13 |
|
Cost of cloud and software | –905 | 66 | –839 |
|
| –954 | 124 | –830 | –5 | 1 |
|
Cost of services | –751 | 19 | –732 |
|
| –806 | 47 | –759 | –7 | –4 |
|
Total cost of revenue | –1,656 | 85 | –1,571 |
|
| –1,760 | 171 | –1,589 | –6 | –1 |
|
Gross profit | 3,605 | 87 | 3,692 |
|
| 3,524 | 172 | 3,696 | 2 | 0 |
|
Research and development | –814 | 21 | –793 |
|
| –852 | 88 | –764 | –4 | 4 |
|
Sales and marketing | –1,515 | 89 | –1,426 |
|
| –1,708 | 211 | –1,497 | –11 | –5 |
|
General and administration | –231 | 3 | –227 |
|
| –291 | 50 | –242 | –21 | –6 |
|
Restructuring | –11 | 11 | 0 |
|
| –4 | 4 | 0 | >100 | NA |
|
Other operating income/expense, net | –10 | 0 | –10 |
|
| 4 | 0 | 4 | <-100 | <-100 |
|
Total operating expenses | –4,236 | 209 | –4,027 | –352 | –4,379 | –4,612 | 524 | –4,087 | –8 | –1 | 7 |
|
|
|
|
|
|
|
|
|
|
|
|
Profit Numbers |
|
|
|
|
|
|
|
|
|
|
|
Operating profit | 1,025 | 211 | 1,235 | 128 | 1,363 | 673 | 525 | 1,198 | 52 | 3 | 14 |
Other non-operating income/expense, net | –9 | 0 | –9 |
|
| –18 | 0 | –18 | –49 | –49 |
|
Finance income | 43 | 0 | 43 |
|
| 107 | 0 | 107 | –60 | –60 |
|
Finance costs | –69 | 0 | –69 |
|
| –94 | 0 | –94 | –27 | –27 |
|
Financial income, net | –25 | 0 | –25 |
|
| 13 | 0 | 13 | <-100 | <-100 |
|
Profit before tax | 990 | 211 | 1,201 |
|
| 668 | 525 | 1,193 | 48 | 1 |
|
Income tax expense | –282 | –51 | –333 |
|
| –138 | –168 | –306 | >100 | 9 |
|
Profit after tax | 708 | 160 | 868 |
|
| 530 | 356 | 887 | 33 | –2 |
|
Attributable to owners of parent | 708 | 160 | 868 |
|
| 521 | 356 | 877 | 36 | –1 |
|
Attributable to non-controlling interests | –1 | 0 | –1 |
|
| 9 | 0 | 9 | <-100 | <-100 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Ratios |
|
|
|
|
|
|
|
|
|
|
|
Operating margin (in %) | 19.5 |
| 23.5 |
| 23.7 | 12.7 |
| 22.7 | 6.7pp | 0.8pp | 1.1pp |
Effective tax rate (in %)3) | 28.5 |
| 27.8 |
|
| 20.6 |
| 25.7 | 7.9pp | 2.1pp |
|
Earnings per share, basic (in €) | 0.59 |
| 0.73 |
|
| 0.43 |
| 0.73 | 37 | –1 |
|
1) Adjustments in the revenue line items are for software support revenue, cloud subscriptions and support revenue, and other similarly recurring revenues that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges, share-based payment expenses, as well as restructuring expenses.
SAP Q1 2018 Quarterly Statement |
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 Explanation of Non-IFRS Measures.
3) The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in Q1 2018 and Q1 2017 mainly results from tax effects of acquisition-related charges and share-based payment expenses.
Due to rounding, numbers may not add up precisely.
SAP Q1 2018 Quarterly Statement |
Non-IFRS Adjustments – Actuals and Estimates
€ millions | Estimated Amounts for | Q1 2018 | Q1 2017 |
Operating profit (IFRS) |
| 1,025 | 673 |
Revenue adjustments | 40 to 70 | 2 | 0 |
Adjustment for acquisition-related charges | 550 to 610 | 129 | 157 |
Adjustment for share-based payment expenses | 800 to 1,100 | 70 | 363 |
Adjustment for restructuring | 25 to 35 | 11 | 4 |
Operating expense adjustments |
| 209 | 524 |
Operating profit adjustments |
| 211 | 525 |
Operating profit (non-IFRS) |
| 1,235 | 1,198 |
1) The estimates provided above include the effects of the Callidus acquisition.
Due to rounding, numbers may not add up precisely.
Non-IFRS Adjustments by Functional Areas
€ millions |
|
|
|
| Q1 2018 |
|
|
|
| Q1 2017 |
| IFRS | Acqui-sition- | SBP1) | Restructuring | Non-IFRS | IFRS | Acquisition- | SBP1) | Restructuring | Non-IFRS |
Cost of cloud and software | –905 | 58 | 8 | 0 | –839 | –954 | 83 | 41 | 0 | –830 |
Cost of services | –751 | 2 | 17 | 0 | –732 | –806 | 2 | 45 | 0 | –759 |
Research and development | –814 | 2 | 19 | 0 | –793 | –852 | 3 | 86 | 0 | –764 |
Sales and marketing | –1,515 | 62 | 27 | 0 | –1,426 | –1,708 | 68 | 143 | 0 | –1,497 |
General and administration | –231 | 5 | –1 | 0 | –227 | –291 | 1 | 49 | 0 | –242 |
Restructuring | –11 | 0 | 0 | 11 | 0 | –4 | 0 | 0 | 4 | 0 |
Other operating income/expense, net | –10 | 0 | 0 | 0 | –10 | 4 | 0 | 0 | 0 | 4 |
Total operating expenses | –4,236 | 129 | 70 | 11 | –4,027 | –4,612 | 157 | 363 | 4 | –4,087 |
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 2018 | Q1 2017 |
Cost of cloud and software | 1 | 1 |
Cost of services | 4 | 1 |
Research and development | 1 | 1 |
Sales and marketing | 5 | 1 |
General and administration | 0 | 0 |
Restructuring expenses | 11 | 4 |
Due to rounding, numbers may not add up precisely.
SAP Q1 2018 Quarterly Statement |
Revenue by Region (IFRS and Non-IFRS) – Quarter
€ millions |
|
|
|
| Q1 2018 |
|
| Q1 2017 |
|
| D in % |
|
|
|
|
|
|
|
|
|
|
|
|
| IFRS | Adj.1) | Non- | Currency | Non-IFRS | IFRS | Adj.1) | Non-IFRS1) | IFRS | Non-IFRS1) | Non-IFRS |
|
|
|
|
|
|
|
|
|
|
|
|
Cloud subscriptions and support revenue by region |
|
|
|
|
|
|
|
| |||
EMEA | 322 | 0 | 322 | 12 | 334 | 230 | 0 | 230 | 40 | 40 | 45 |
Americas | 620 | 2 | 621 | 91 | 712 | 582 | 0 | 582 | 6 | 7 | 22 |
APJ | 129 | 0 | 129 | 14 | 143 | 94 | 0 | 94 | 38 | 38 | 53 |
Cloud subscriptions and support revenue | 1,070 | 2 | 1,072 | 117 | 1,189 | 905 | 0 | 906 | 18 | 18 | 31 |
|
|
|
|
|
|
|
|
|
|
|
|
Cloud and software revenue by region |
|
|
|
|
|
|
|
|
|
|
|
EMEA | 1,959 | 0 | 1,959 | 50 | 2,009 | 1,848 | 0 | 1,848 | 6 | 6 | 9 |
Americas | 1,688 | 2 | 1,690 | 267 | 1,957 | 1,775 | 0 | 1,776 | –5 | –5 | 10 |
APJ | 705 | 0 | 705 | 67 | 771 | 704 | 0 | 704 | 0 | 0 | 10 |
Cloud and software revenue | 4,351 | 2 | 4,353 | 384 | 4,737 | 4,328 | 0 | 4,328 | 1 | 1 | 9 |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue by region |
|
|
|
|
|
|
|
|
|
|
|
Germany | 753 | 0 | 753 | 2 | 755 | 674 | 0 | 674 | 12 | 12 | 12 |
Rest of EMEA | 1,615 | 0 | 1,615 | 59 | 1,674 | 1,572 | 0 | 1,572 | 3 | 3 | 7 |
Total EMEA | 2,368 | 0 | 2,368 | 61 | 2,428 | 2,246 | 0 | 2,246 | 5 | 5 | 8 |
United States | 1,665 | 2 | 1,667 | 250 | 1,917 | 1,773 | 0 | 1,773 | –6 | –6 | 8 |
Rest of Americas | 398 | 0 | 398 | 90 | 488 | 431 | 0 | 431 | –8 | –8 | 13 |
Total Americas | 2,063 | 2 | 2,065 | 340 | 2,405 | 2,205 | 0 | 2,205 | –6 | –6 | 9 |
Japan | 209 | 0 | 209 | 20 | 230 | 198 | 0 | 198 | 6 | 6 | 16 |
Rest of APJ | 620 | 0 | 620 | 58 | 679 | 637 | 0 | 637 | –3 | –3 | 7 |
Total APJ | 830 | 0 | 830 | 79 | 908 | 835 | 0 | 835 | –1 | –1 | 9 |
Total revenue | 5,261 | 2 | 5,262 | 479 | 5,742 | 5,285 | 0 | 5,285 | 0 | 0 | 9 |
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 Explanation of Non-IFRS Measures.
Due to rounding, numbers may not add up precisely.
SAP Q1 2018 Quarterly Statement |
Employees by Region and Functional Areas
| 31.3.2018 | 31.3.2017 | ||||||
Full-time equivalents | EMEA | Americas | APJ | Total | EMEA | Americas | APJ | Total |
Cloud and software | 5,909 | 4,000 | 4,801 | 14,710 | 6,575 | 4,596 | 5,524 | 16,696 |
Services | 7,705 | 5,085 | 5,161 | 17,951 | 6,578 | 4,204 | 4,073 | 14,855 |
Research and development | 11,715 | 5,376 | 8,499 | 25,590 | 10,675 | 4,964 | 8,051 | 23,691 |
Sales and marketing | 9,542 | 9,403 | 4,977 | 23,922 | 8,680 | 8,845 | 4,550 | 22,074 |
General and administration | 2,798 | 1,835 | 1,088 | 5,721 | 2,689 | 1,799 | 1,036 | 5,525 |
Infrastructure | 1,847 | 871 | 508 | 3,226 | 1,638 | 812 | 460 | 2,910 |
SAP Group (March 31) | 39,516 | 26,569 | 25,035 | 91,120 | 36,835 | 25,221 | 23,694 | 85,751 |
Thereof acquisitions 1) | 22 | 0 | 0 | 22 | 4 | 13 | 0 | 17 |
SAP Group (three months’ end average) | 39,258 | 26,447 | 24,847 | 90,552 | 36,681 | 25,066 | 23,512 | 85,259 |
1) Acquisitions closed between January 1 and March 31 of the respective year |
SAP Q1 2018 Quarterly Statement |
Impact of Changes in Accounting Policies
Adoption of IFRS 15
As of January 1, 2018, SAP changed several of its accounting policies to adopt IFRS 15 ‘Revenue from Contracts with Customers’. Under the IFRS 15 adoption method chosen by SAP, prior years (including the prior-period numbers presented in the primary financial statements in this quarterly statement) are not restated to conform to the new policies.
The impact of the policy change5 in the first quarter of 2018 was as follows:
– Software licenses and support revenues experienced a benefit of €10 million, with most of the difference resulting from exercises of customer software purchase options granted in prior years which result in software revenue.
– Operating expenses benefitted, in cost of sales and marketing, in the amount of €38 million from higher capitalization of sales commissions net of higher amortization of amounts capitalized.
– The abovementioned effects together with other insignificant effects resulted in a net positive impact on operating profit of approximately €44 million.
– Compared to what they would have been under the pre-IFRS 15 accounting policies, the following applies:
· Non-current and current other non-financial assets on March 31, 2018, are higher by €154 million and €30 million, respectively (January 1, 2018: higher by €124 million and €24 million, respectively) due to the higher capitalization of sales commissions.
· Trade and other receivables and contract liabilities on March 31, 2018 are lower by €1.31 billion and €1.22 billion, respectively (January 1, 2018: higher by €560 million and €644 million, respectively), resulting from changes in the timing of and amounts recognized as contract balances.
· Provisions on March 31, 2018, are lower by €20 million (January 1, 2018: lower by €25 million), reflecting lower provisions for onerous customer contracts.
Adoption of IFRS 9
As of January 1, 2018, SAP changed several of its accounting policies to adopt IFRS 9 ‘Financial Instruments’. Under the IFRS 9 adoption method chosen by SAP, prior years are not restated to conform to the new policies.
The impact of the policy change as of January 1, 2018 was as follows:
– Trade receivables are lower by €25 million resulting from the application of the expected credit loss model.
– OCI is lower by €157 million resulting from the reclassification of amounts attributable to available-for-sale financial assets accumulated in OCI so far to opening retained earnings.
Please also refer to Note (3e) of our Integrated Report 2017 for further qualitative explanations of the changes in accounting policies as a result of the adoption of IFRS 9 and IFRS 15.
5 “Impact of the policy change” means the difference between a measure determined under SAP’s new IFRS 15-based policies and the respective measure as it would stand had our previous accounting policies continued to apply.
SAP Q1 2018 Quarterly Statement |
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.
© 2018 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. All other product and service names mentioned are the trademarks of their respective companies. Please see www.sap.com/about/legal/copyright.html for additional trademark information and notices.
SAP Q1 2018 Quarterly Statement |