SAP SE 6K Current report | SAP 26 Jul 17

Exhibit 99.1


SAP Q2 2017 Quarterly Statement

SAP Raises Outlook –

Q2 Total Revenue Up Double-Digit

◾

Strong new cloud bookings, up 33%

◾

Stellar software revenue, up 5% – beating a record Q2 2016

◾

Operating profit down 27% (IFRS) and up 4% (Non-IFRS) – compared with exceptional profits in Q2 2016

◾

Digital core business soars with over 6,300 S/4HANA customers – up over 70% year over year

◾

Share buyback announced, up to €500 million in 2017 – following strong operating cash flow, up 20% in HY

LOGO

Cloud Subscriptions &

Share of

Total Revenue

Support Revenue

Predictable Revenue

in € millions

in percent

in € millions

IFRS

Non-IFRS

Q2 2017

IFRS

Non-IFRS

932

63%

5,782

+29%

+29% (+27% cc)

+0 p.p.

+10%

+10% (+9% cc)

“This strong quarter is the latest in SAP’s 8-year run of consistent, profitable growth. Our winning strategy is again validated by fast adoption of S/4HANA and our full portfolio of cloud solutions. We expect continuing momentum in the second half and confidently raise our guidance for the full year. SAP has never been better positioned.”

Bill McDermott, CEO

“Our fantastic momentum continued with double-digit growth in total revenue. Our cloud & software revenue growth rate in the first half of the year is at the upper end of our full-year guidance range. Based on our strong growth and cash generation we are pleased to share SAP’s success with our shareholders by initiating a share buyback of up to €500 million in the second half.”

Luka Mucic, CFO


SAP Q2 2017 Quarterly Statement			1

Walldorf, Germany – July 20, 2017

SAP SE (NYSE: SAP) today announced its financial results for the second quarter 2017 ended June 30, 2017.

Business Highlights

Financial Highlights

Second Quarter 2017

SAP’s fast growth in the cloud continued in the second quarter. New cloud bookings¹ grew by 33% (33% at constant currencies) in the second quarter and reached €340 million. Both IFRS andnon-IFRS cloud subscriptions and support revenue grew 29% year-over-year (27% at constant currencies) to €932 million. IFRS andnon-IFRS software revenue was €1.09 billion, up 5% year-over-year (4% at constant currencies). New cloud and software license order entry² grew by more than 20% year-over-year in the second quarter. IFRS andnon-IFRS cloud and software revenue was €4.76 billion, an increase of 9% (8% at constant currencies). SAP’s “predictable revenue”, i.e. the total of cloud subscriptions & support revenue and software support revenue, was 63% of total revenue.

IFRS operating profit was down 27% to €926 million.Non-IFRS operating profit grew 4% to €1.57 billion (3% at constant currencies). IFRS earnings per share decreased 18% to €0.56.Non-IFRS earnings per share increased 14% to €0.94. The IFRS operating profit and EPS were primarily impacted by a strong increase in restructuring related expenses and share-based compensation expenses in the second quarter.

Operating cash flow for the first six months was €3.51 billion, an increase of 20% year-over-year and free cash flow increased 15% year-over-year to €2.90 billion. At quarter end, net debt was €1.79 billion, an improvement of €2.5 billion year over year. SAP’s strong growth and cash generation provide significant flexibility around capital allocation aimed at driving shareholder value. After evaluating the expected cash flow development for the second half of 2017 and consistent with the company’s capital allocation priorities, SAP has decided on a share buyback of up to €500 million in 2017. The share buyback will start shortly and will be executed in several tranches.

SAP S/4HANA

With S/4HANA customers can massively simplify their IT landscape, run live and reinvent their business model for the digital economy across both cloud andon-premise deployments. S/4HANA adoption grew to more than 6,300 customers, up over 70% year over year. In the second quarter, approximately 500 additional customers signed up of which around 30% were net new customers. Google, Centrica, and Mercadona selected S/4HANA in the second quarter.

SAP Leonardo

SAP Leonardo is a set of cutting-edge tools which turn systems of record into systems of intelligence. SAP Leonardo integrates breakthrough technologies such as Artificial Intelligence, Machine Learning and Internet of Things and runs them seamlessly in the cloud. It offers design thinking methodology and SAP expertise to help companies rapidly adopt new capabilities and business models and accelerate digital transformation. CITIC Pacific Mining among many others adopted SAP Leonardo solutions in the second 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 theirpay-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 Q2 2017 Quarterly Statement			2

Human Capital Management

With SuccessFactors and Fieldglass, SAP delivers total workforce management across both permanent and contingent labor, localized for 84 countries and 42 languages. Top industry analysts recently gave SAP SuccessFactors the highest rankings in Cloud HCM for Core HR and Talent Management for global organizations with more than 5,000 workers as well as formid-market European-headquartered enterprises. SuccessFactors Employee Central, which is the core of our HCM offering, had more than 1,800 customers at the end of the second quarter. Companies like Vitra and Swiss Post selected SAP’s workforce management solutions in the second quarter.

Customer Engagement and Commerce

SAP’s next generation customer engagement solutions 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 – be it social, retail ore-commerce. SAP’s CEC solutions serve both B2C and B2B across a wide range of industries, including retail, telco, financial services, manufacturing and the public sector. Top industry analysts recently named SAP Hybris a leader for both B2C and B2B Digital Commerce and Multichannel Marketing Campaign Management. SAP’s CEC solutions once again achieved strong double-digit new cloud bookings growth as well as double-digit growth in software revenue.

Business Networks

Each of SAP’s business network solutions provides a rich, open, global platform that connects a large ecosystem of customers, suppliers, partners and developers delivering ever expanding content and innovation. On the Ariba Network, more than 2.8 million companies in over 180 countries collaborate and trade nearly $1 trillion in goods and services annually. Concur helps more than 49 million end users effortlessly process travel and expenses. With SAP Fieldglass customers manage over 3.5 million contingent workers in more than 140 countries. Total revenue in the SAP Business Network segment was up 22% in the second quarter to €570 million.

Regional Revenue Performance in the Second Quarter 2017

SAP had a strong performance in the EMEA region with cloud and software revenue increasing 9% (IFRS). Cloud subscriptions and support revenue grew 48% (IFRS) with an especially strong quarter in Germany and Russia. SAP also had double-digit software revenue growth in Germany and MENA (Middle East and North Africa) and triple-digit software revenue growth in Russia.

The Company had solid growth in the Americas region with cloud and software revenue growing by 8% (IFRS) and cloud subscriptions and support revenue increasing by 20% (IFRS). In North America, Canada had double-digit growth in software revenue. In Latin America Mexico and Chile were highlights with double-digit software revenue growth.

In the APJ region, SAP had an exceptional performance in both cloud and software revenue and cloud subscriptions and support revenue. Cloud and software revenue was up 13% (IFRS) with cloud subscriptions and support revenue growing by 52% (IFRS). China was very strong in cloud subscriptions and support revenue while Japan and Australia both had strong double-digit growth in software revenue.


SAP Q2 2017 Quarterly Statement			3

Financial Results at a Glance


Second Quarter 2017¹⁾
	IFRS						Non-IFRS²⁾
€ million, unless otherwise stated	Q2 2017		Q2 2016		D in %		Q2 2017		Q2 2016		D in %		D in % const. curr.
New Cloud Bookings³⁾		N/A		N/A		N/A		340		255		33		33
Cloud subscriptions and support		932		720		29		932		721		29		27
Software licenses and support		3,826		3,639		5		3,826		3,640		5		4
Cloud and software		4,757		4,359		9		4,758		4,361		9		8
Total revenue		5,782		5,237		10		5,782		5,239		10		9
Share of predictable revenue (in %)		63		63		0pp		63		63		0pp
Operating profit		926		1,269		–27		1,570		1,516		4		3
Profit after tax		666		813		–18		1,120		979		14
Basic earnings per share (€)		0.56		0.68		–18		0.94		0.82		14
Number of employees (FTE)		87,114		79,962		9		N/A		N/A		N/A		N/A


Six months ended June 2017¹⁾
	IFRS						Non-IFRS²⁾
€ million, unless otherwise stated	Q1–Q2 2017		Q1–Q2 2016		D in %		Q1–Q2 2017		Q1–Q2 2016		D in %		D in % const. curr.
New Cloud Bookings³⁾		N/A		N/A		N/A		555		400		39		37
Cloud subscriptions and support		1,837		1,397		31		1,837		1,399		31		28
Software licenses and support		7,248		6,811		6		7,248		6,813		6		4
Cloud and software		9,085		8,208		11		9,085		8,212		11		8
Total revenue		11,066		9,964		11		11,067		9,967		11		9
Share of predictable revenue (in %)		66		66		0pp		66		66		0pp
Operating profit		1,599		2,082		–23		2,768		2,620		6		3
Profit after tax		1,197		1,382		–13		2,006		1,742		15
Basic earnings per share (€)		0.99		1.16		–14		1.67		1.46		14
Number of employees (FTE)		87,114		79,962		9		N/A		N/A		N/A		N/A

¹⁾ All figures are unaudited.

²⁾ For a detailed description of SAP’snon-IFRS measures seeExplanation ofNon-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 Q2 2017 Quarterly Statement			4

Business Outlook 2017

The Company is raising its outlook for the full year 2017:

–

Based on the continued strong momentum in SAP’s cloud business, the Company expects full year 2017non-IFRS cloud subscriptions and support revenue to be in a range of €3.8 billion to €4.0 billion at constant currencies (2016: €2.99 billion). The upper end of this range represents a growth rate of 34% at constant currencies.

–

Due to increasing adoption of S/4HANA and our Digital Business Platform the Company now expects full year 2017non-IFRS cloud & software revenue to increase by 6.5% to 8.5% at constant currencies (2016: €18.43 billion).

–

The Company now expects full year 2017non-IFRS total revenue in a range of €23.3 billion to €23.7 billion at constant currencies (2016: €22.07 billion).

–

The Company expects full-year 2017non-IFRS operating profit to be in a range of €6.8 billion to €7.0 billion at constant currencies (2016: €6.63 billion).

While the Company’s full-year 2017 business outlook is at constant currencies, actual currency reported figures are expected to continue to be impacted by exchange rate fluctuations. If exchange rates remain at the June 2017 average level for the rest of the year, we expectnon-IFRS cloud and software revenue andnon-IFRS operating profit growth rates to experience a currency headwind in a range of-2 to 0pp in Q3 2017(-1 to +1pp for the full year 2017).


SAP Q2 2017 Quarterly Statement			5

Additional Information

Media reports have raised questions surrounding contracts and third-party business practices in South Africa. SAP embodies an unwavering commitment to maintain the highest standards of integrity and transparency across its business. SAP has initiated an independent investigation spearheaded by a multinational law firm and overseen by Executive Board Member AdaireFox-Martin to vigorously review contracts awarded by SAP South Africa.

General Remarks about this Quarterly Statement and the SAP Integrated Report

Since Q1 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. SAP’s 2016 Integrated Report and Annual Report to Shareholders, and 2016 Annual Report on Form20-F were published on February 28, 2017, and are available for download atwww.sapintegratedreport.com.

For a more detailed description of all of SAP’snon-IFRS measures and their limitations as well as our constant currency and free cash flow figures seeExplanation ofNon-IFRS Measures online.

Webcast

SAP senior management will host a financial analyst conference call today 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 atwww.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the second quarter results can be found atwww.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 355,000 business and public sector customers to operate profitably, adapt continuously, and grow sustainably. For more information, visitwww.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:
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SAP Q2 2017 Quarterly Statement			6

Financial andNon-Financial Key Facts (IFRS andNon-IFRS)


€ millions, unless otherwise stated	Q1 2016		Q2 2016		Q3 2016		Q4 2016		TY 2016		Q1 2017		Q2 2017
Revenues
Cloud subscriptions and support (IFRS)		677		720		769		827		2,993		905		932
Cloud subscriptions and support(non-IFRS)		678		721		769		827		2,995		906		932

% change – yoy		33		30		28		31		30		34		29

% change constant currency – yoy		33		33		29		29		31		30		27
Software licenses (IFRS)		609		1,040		1,034		2,177		4,860		691		1,090
Software licenses(non-IFRS)		609		1,042		1,034		2,177		4,862		691		1,090

% change – yoy		–13		6		2		1		1		13		5

% change constant currency – yoy		–10		10		2		0		1		10		4
Software support (IFRS)		2,564		2,598		2,653		2,756		10,571		2,731		2,736
Software support(non-IFRS)		2,564		2,598		2,653		2,756		10,572		2,731		2,736

% change – yoy		5		3		6		6		5		7		5

% change constant currency – yoy		5		6		6		5		6		3		4
Software licenses and support (IFRS)		3,172		3,639		3,686		4,933		15,431		3,422		3,826
Software licenses and support(non-IFRS)		3,173		3,640		3,687		4,934		15,434		3,422		3,826

% change – yoy		1		4		5		4		3		8		5

% change constant currency – yoy		2		7		5		3		4		5		4
Cloud and software (IFRS)		3,850		4,359		4,455		5,760		18,424		4,328		4,757
Cloud and software(non-IFRS)		3,851		4,361		4,456		5,761		18,428		4,328		4,758

% change – yoy		5		7		8		7		7		12		9

% change constant currency – yoy		6		11		9		6		8		9		8
Total revenue (IFRS)		4,727		5,237		5,375		6,724		22,062		5,285		5,782
Total revenue(non-IFRS)		4,728		5,239		5,375		6,724		22,067		5,285		5,782

% change – yoy		5		5		8		6		6		12		10

% change constant currency – yoy		6		9		8		5		7		8		9
Share of predictable revenue (IFRS, in %)		69		63		64		53		61		69		63
Share of predictable revenue(non-IFRS, in %)		69		63		64		53		61		69		63


Profits
Operating profit (IFRS)		813		1,269		1,103		1,950		5,135		673		926
Operating profit(non-IFRS)		1,104		1,516		1,638		2,375		6,633		1,198		1,570

% change		5		9		1		4		4		8		4

% change constant currency		4		11		1		2		4		2		3
Profit after tax (IFRS)		570		813		725		1,526		3,634		530		666

Profit after tax(non-IFRS)		763		979		1,089		1,826		4,658		887		1,120

% change		9		2		–7		9		3		16		14


Margins
Cloud subscriptions and support gross margin (IFRS, in %)		57.0		56.6		56.3		54.8		56.1		57.7		56.0
Cloud subscriptions and support gross margin(non-IFRS, in %)		65.9		64.8		64.5		62.7		64.4		64.6		62.4
Software license and support gross margin (IFRS, in %)		84.2		86.1		85.4		87.1		85.9		83.3		85.3
Software license and support gross margin(non-IFRS, in %)		85.9		87.4		87.4		88.4		87.4		85.1		86.6
Cloud and software gross margin (IFRS, in %)		79.4		81.2		80.4		82.4		81.0		77.9		79.6
Cloud and software gross margin(non-IFRS, in %)		82.3		83.6		83.4		84.7		83.7		80.8		81.8
Gross margin (IFRS, in %)		66.9		70.4		69.3		73.0		70.2		66.7		69.0

Gross margin(non-IFRS, in %)		69.6		72.6		72.7		75.5		72.9		69.9		71.5
Operating margin (IFRS, in %)		17.2		24.2		20.5		29.0		23.3		12.7		16.0
Operating margin(non-IFRS, in %)		23.4		28.9		30.5		35.3		30.1		22.7		27.2

AT&S segment – Cloud subscriptions and support gross margin (in %)		54		51		51		48		50		52		49

AT&S segment – Gross margin (in %)		70		73		74		76		73		70		72

AT&S segment – Segment margin (in %)		34		39		40		45		40		32		37


SAP Q2 2017 Quarterly Statement			7


€ millions, unless otherwise stated	Q1 2016		Q2 2016		Q3 2016		Q4 2016		TY 2016		Q1 2017		Q2 2017

SAP BN segment – Cloud subscriptions and support gross margin (in %)		75		76		77		75		76		77		77

SAP BN segment – Gross margin (in %)		67		68		68		66		67		68		68

SAP BN segment – Segment margin (in %)		17		18		20		16		18		16		17



Key Profit Ratios

Effective tax rate (IFRS, in %)		23.3		28.9		28.4		22.3		25.3		20.6		26.6

Effective tax rate(non-IFRS, in %)		26.2		29.6		29.7		23.5		26.8		25.7		27.8



Earnings per share, basic (IFRS, in €)		0.48		0.68		0.61		1.27		3.04		0.43		0.56

Earnings per share, basic(non-IFRS, in €)		0.64		0.82		0.91		1.53		3.90		0.73		0.94



Order Entry

New Cloud Bookings		145		255		265		483		1,147		215		340

Deferred cloud subscriptions and support revenue (IFRS, quarter end)		953		1,003		1,081		1,271		1,271		1,376		1,293

Orders – Number ofon-premise software deals (in transactions)		12,884		14,468		13,048		16,891		57,291		13,115		14,361

Share of orders greater than €5 million based on total software order entry volume (in %)		17		29		26		34		29		27		31

Share of orders smaller than €1 million based on total software order entry volume (in %)		48		38		40		35		38		46		40



Liquidity and Cash Flow

Net cash flows from operating activities		2,482		439		707		1,000		4,628		2,872		642

Free cash flow		2,313		202		446		665		3,627		2,581		322

% of total revenue (IFRS)		49		4		8		10		16		49		6

% of profit after tax (IFRS)		406		25		61		44		100		487		48

Group liquidity, gross		5,853		4,347		4,388		4,673		4,673		7,345		4,927

Group debt		–9,080		–8,593		–8,134		–7,826		–7,826		–7,805		–6,716

Group liquidity, net		–3,227		–4,245		–3,746		–3,153		–3,153		–460		–1,789

Days’ sales outstanding (DSO, in days)¹⁾		72		73		74		74		74		72		72



Financial Position

Cash and cash equivalents		5,743		4,206		4,112		3,702		3,702		5,937		4,236

Goodwill		21,922		22,354		22,279		23,311		23,311		23,091		21,949

Total assets		42,884		41,788		41,604		44,277		44,277		47,724		42,900

Equity ratio (total equity in % of total assets)		53		55		57		60		60		56		57



Non-Financials

Number of employees (quarter end)²⁾		78,230		79,962		82,426		84,183		84,183		85,751		87,114

Employee retention (in %, rolling 12 months)		92.0		92.6		93.4		93.7		93.7		94.1		94.3

Women in management (in %, quarter end)		23.6		24.1		24.3		24.5		24.5		24.8		25.0

Greenhouse gas emissions (in kilotons)		120		95		85		80		380		100		55

¹⁾ Days’ sales outstanding measures the length of time it takes to collect receivables. SAP calculates DSO by dividing the average invoiced accounts receivables balance of the last 12 months by the average monthly sales of the last 12 months.

²⁾ In full-time equivalents

Due to rounding, numbers may not add up precisely.


SAP Q2 2017 Quarterly Statement			8

Consolidated Income Statements of SAP Group (IFRS) – Quarter

€ millions, unless otherwise stated

Q2 2017

Q2 2016

D in %

Cloud subscriptions and support

932

720

Software licenses

1,090

1,040

Software support

2,736

2,598

Software licenses and support

3,826

3,639

Cloud and software

4,757

4,359

Services

1,024

878

Total revenue

5,782

5,237

Cost of cloud subscriptions and support

–410

–312

Cost of software licenses and support

–563

–507

Cost of cloud and software

–972

–819

Cost of services

–822

–733

Total cost of revenue

–1,794

–1,552

Gross profit

3,987

3,685

Research and development

–842

–710

Sales and marketing

–1,707

–1,470

General and administration

–278

–229

Restructuring

–237

–11

>100

Other operating income/expense, net

–24

Total operating expenses

–4,856

–3,968

Operating profit

926

1,269

–27

Othernon-operating income/expense, net

–101

<–100

Finance income

–6

Finance costs

–62

Financial income, net

–26

–23

Profit before tax

908

1,144

–21

Income tax expense

–242

–331

–27

Profit after tax

666

813

–18

Attributable to owners of parent

668

816

–18

Attributable tonon-controlling interests

–2

–3

–35

Earnings per share, basic (in €)¹⁾

0.56

0.68

–18

Earnings per share, diluted (in €)¹⁾

0.56

0.68

–18

¹⁾ For the three months ended June 30, 2017 and 2016, the weighted average number of shares was 1,199 million (diluted 1,200 million) and 1,198 million (diluted: 1,199 million), respectively (treasury stock excluded).

Due to rounding, numbers may not add up precisely.


SAP Q2 2017 Quarterly Statement			9

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

€ millions, unless otherwise stated

Q1–Q2 2017

Q1–Q2 2016

D in %

Cloud subscriptions and support

1,837

1,397

Software licenses

1,781

1,649

Software support

5,467

5,162

Software licenses and support

7,248

6,811

Cloud and software

9,085

8,208

Services

1,981

1,755

Total revenue

11,066

9,964

Cost of cloud subscriptions and support

–793

–603

Cost of software licenses and support

–1,134

–1,007

Cost of cloud and software

–1,927

–1,610

Cost of services

–1,628

–1,506

Total cost of revenue

–3,555

–3,116

Gross profit

7,512

6,848

Research and development

–1,694

–1,419

Sales and marketing

–3,415

–2,865

General and administration

–569

–460

Restructuring

–242

–22

>100

Other operating income/expense, net

–1

<–100

Total operating expenses

–9,467

–7,882

Operating profit

1,599

2,082

–23

Othernon-operating income/expense, net

–10

–136

–93

Finance income

143

Finance costs

–156

–132

Financial income, net

–13

–59

–78

Profit before tax

1,576

1,887

–16

Income tax expense

–379

–504

–25

Profit after tax

1,197

1,382

–13

Attributable to owners of parent

1,189

1,388

–14

Attributable tonon-controlling interests

–5

<–100

Earnings per share, basic (in €)¹⁾

0.99

1.16

–14

Earnings per share, diluted (in €)¹⁾

0.99

1.16

–14

¹⁾ For the six months ended June 30, 2017 and 2016, 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.


SAP Q2 2017 Quarterly Statement			10

Consolidated Statements of Financial Position of SAP Group (IFRS)


as at June 30, 2017 and December 31, 2016
€ millions	2017		2016
Cash and cash equivalents		4,236		3,702
Other financial assets		868		1,124
Trade and other receivables		5,408		5,924
Othernon-financial assets		751		581
Tax assets		375		233
Total current assets		11,638		11,564
Goodwill		21,949		23,311
Intangible assets		3,273		3,786
Property, plant, and equipment		2,719		2,580
Other financial assets		1,497		1,358
Trade and other receivables		117		126
Othernon-financial assets		557		532
Tax assets		441		450
Deferred tax assets		710		571
Totalnon-current assets		31,263		32,713
Total assets		42,900		44,277

€ millions	2017		2016
Trade and other payables		1,142		1,281
Tax liabilities		288		316
Financial liabilities		863		1,813
Othernon-financial liabilities		2,758		3,699
Provisions		369		183
Deferred income		4,898		2,383
Total current liabilities		10,318		9,674
Trade and other payables		124		127
Tax liabilities		436		365
Financial liabilities		6,260		6,481
Othernon-financial liabilities		545		461
Provisions		235		217
Deferred tax liabilities		380		411
Deferred income		78		143
Totalnon-current liabilities		8,058		8,205
Total liabilities		18,376		17,880
Issued capital		1,229		1,229
Share premium		565		599
Retained earnings		22,004		22,302
Other components of equity		1,812		3,346
Treasury shares		–1,091		–1,099
Equity attributable to owners of parent		24,518		26,376

Non-controlling interests		7		21
Total equity		24,525		26,397
Total equity and liabilities		42,900		44,277

Due to rounding, numbers may not add up precisely.


SAP Q2 2017 Quarterly Statement			11

Consolidated Statements of Cash Flows of SAP Group (IFRS)


€ millions	Q1–Q2 2017		Q1–Q2 2016
Profit after tax		1,197		1,382
Adjustments to reconcile profit after tax to net cash flows from operating activities:
Depreciation and amortization		642		615
Income tax expense		379		504
Financial income, net		13		59
Decrease/increase in sales and bad debt allowances on trade receivables		–4		60
Other adjustments fornon-cash items		–28		12
Decrease/increase in trade and other receivables		303		114
Decrease/increase in other assets		–312		–309
Decrease/increase in trade payables, provisions, and other liabilities		–634		–1,165
Decrease/increase in deferred income		2,722		2,493
Interest paid		–125		–120
Interest received		41		36
Income tax paid, net of refunds		–680		–760
Net cash flows from operating activities		3,514		2,921
Business combinations, net of cash and cash equivalents acquired		–22		–16
Purchase of intangible assets or property, plant, and equipment		–610		–406
Proceeds from sales of intangible assets or property, plant, and equipment		47		33
Purchase of equity or debt instruments of other entities		–1,843		–320
Proceeds from sales of equity or debt instruments of other entities		2,064		308
Net cash flows from investing activities		–365		–401
Dividends paid		–1,499		–1,378
Dividends paid onnon-controlling interests		–23		0
Proceeds from reissuance of treasury shares		0		15
Proceeds from borrowings		18		1
Repayments of borrowings		–1,003		–544
Transactions withnon-controlling interests		0		3
Net cash flows from financing activities		–2,506		–1,902
Effect of foreign currency rates on cash and cash equivalents		–108		177
Net decrease/increase in cash and cash equivalents		534		796
Cash and cash equivalents at the beginning of the period		3,702		3,411
Cash and cash equivalents at the end of the period		4,236		4,206

Due to rounding, numbers may not add up precisely.


SAP Q2 2017 Quarterly Statement			12

Segment Reporting – Quarter

Applications, Technology & Services


€ millions, unless otherwise stated			Q2 2017		Q2 2016		D in %		D in %
	Actual Currency		Constant Currency		Actual Currency		Actual Currency		Constant Currency
Cloud subscriptions and support – SaaS/PaaS¹⁾		376		368		273		38		35
Cloud subscriptions and support – IaaS²⁾		81		80		48		67		65
Cloud subscriptions and support		457		448		321		42		40
Software licenses		1,056		1,054		1,025		3		3
Software support		2,705		2,668		2,572		5		4
Software licenses and support		3,761		3,722		3,596		5		4
Cloud and software		4,218		4,171		3,917		8		6
Services		890		874		827		8		6
Total segment revenue		5,109		5,044		4,745		8		6
Cost of cloud subscriptions and support – SaaS/PaaS¹⁾		–159		–156		–106		51		48
Cost of cloud subscriptions and support – IaaS²⁾		–74		–73		–52		43		41
Cost of cloud subscriptions and support		–234		–229		–158		48		46
Cost of software licenses and support		–489		–480		–463		6		4
Cost of cloud and software		–722		–709		–620		16		14
Cost of services		–712		–701		–671		6		4
Total cost of revenue		–1,434		–1,410		–1,292		11		9
Segment gross profit		3,674		3,634		3,453		6		5
Other segment expenses		–1,776		–1,755		–1,591		12		10
Segment profit		1,899		1,879		1,862		2		1
Margins
Cloud subscriptions and support gross margin – SaaS/PaaS¹⁾ (in %)		58		58		61		–4pp		–4pp
Cloud subscriptions and support gross margin – IaaS²⁾ (in %)		8		8		–8		16pp		16pp
Cloud subscriptions and support gross margin (in %)		49		49		51		–2pp		–2pp
Gross margin (in %)		72		72		73		–1pp		–1pp
Segment margin (in %)		37		37		39		–2pp		–2pp

¹⁾ Software as a Service/Platform as a Service

²⁾ Infrastructure as a Service

Due to rounding, numbers may not add up precisely.


SAP Q2 2017 Quarterly Statement			13

SAP Business Network


€ millions, unless otherwise stated			Q2 2017		Q2 2016		D in %		D in %
	Actual Currency		Constant Currency		Actual Currency		Actual Currency		Constant Currency
Cloud subscriptions and support – SaaS/PaaS¹⁾		461		451		389		19		16
Cloud subscriptions and support – IaaS²⁾		0		0		0		NA		NA
Cloud subscriptions and support		461		451		389		19		16
Software licenses		0		0		0		63		66
Software support		5		5		7		–33		–37
Software licenses and support		5		5		7		–32		–37
Cloud and software		466		455		396		18		15
Services		104		103		72		45		43
Total segment revenue		570		558		468		22		19
Cost of cloud subscriptions and support – SaaS/PaaS¹⁾		–106		–104		–92		15		13
Cost of cloud subscriptions and support – IaaS²⁾		0		0		0		NA		NA
Cost of cloud subscriptions and support		–106		–104		–92		15		13
Cost of software licenses and support		–1		–1		0		>100		>100
Cost of cloud and software		–107		–105		–92		16		14
Cost of services		–75		–74		–60		26		24
Total cost of revenue		–183		–179		–152		20		18
Segment gross profit		388		379		316		23		20
Other segment expenses		–290		–285		–231		26		23
Segment profit		97		94		85		15		11
Margins
Cloud subscriptions and support gross margin – SaaS/PaaS¹⁾ (in %)		77		77		76		1pp		1pp
Cloud subscriptions and support gross margin – IaaS²⁾ (in %)		NA		NA		NA		NA		NA
Cloud subscriptions and support gross margin (in %)		77		77		76		1pp		1pp
Gross margin (in %)		68		68		68		0pp		0pp
Segment margin (in %)		17		17		18		–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 Q2 2017 Quarterly Statement			14

Reconciliation of Cloud Subscription Revenues and Margins


€ millions, unless otherwise stated				Q2 2017		Q2 2016		D in %		D in %
		Actual Currency		Constant Currency		Actual Currency		Actual Currency		Constant Currency
Cloud subscriptions and support revenue – SaaS/PaaS¹⁾	SAP Business Network segment		461		451		389		19		16
	Other		389		382		284		37		34
	Total		851		833		673		26		24
Cloud subscriptions and support revenue – IaaS²⁾			81		80		48		67		65
Cloud subscriptions and support revenue			932		913		721		29		27
Cloud subscriptions and support gross margin – SaaS/PaaS¹⁾ (in %)	SAP Business Network segment		77		77		76		1pp		1pp
	Other		56		57		61		–5pp		–4pp
	Total		68		68		70		–2pp		–2pp
Cloud subscriptions and support gross margin – IaaS²⁾ (in %)			8		8		–8		16pp		16pp
Cloud subscriptions and support gross margin (in %)			62		63		65		–2pp		–2pp

¹⁾ Software as a Service/Platform as a Service

²⁾ Infrastructure as a Service

Due to rounding, numbers may not add up precisely.


SAP Q2 2017 Quarterly Statement			15

Segment Reporting – Half Year

Applications, Technology & Services


€ millions, unless otherwise stated			Q1–Q2 2017		Q1–Q2 2016		D in %		D in %
	Actual Currency		Constant Currency		Actual Currency		Actual Currency		Constant Currency
Cloud subscriptions and support – SaaS/PaaS¹⁾		728		710		527		38		35
Cloud subscriptions and support – IaaS²⁾		158		155		89		76		73
Cloud subscriptions and support		885		865		616		44		40
Software licenses		1,731		1,706		1,616		7		6
Software support		5,410		5,289		5,112		6		3
Software licenses and support		7,141		6,995		6,728		6		4
Cloud and software		8,027		7,860		7,344		9		7
Services		1,745		1,706		1,630		7		5
Total segment revenue		9,772		9,566		8,973		9		7
Cost of cloud subscriptions and support – SaaS/PaaS¹⁾		–299		–290		–192		56		51
Cost of cloud subscriptions and support – IaaS²⁾		–142		–140		–102		39		36
Cost of cloud subscriptions and support		–441		–430		–294		50		46
Cost of software licenses and support		–997		–979		–925		8		6
Cost of cloud and software		–1,438		–1,409		–1,219		18		16
Cost of services		–1,398		–1,372		–1,348		4		2
Total cost of revenue		–2,836		–2,781		–2,567		10		8
Segment gross profit		6,936		6,785		6,406		8		6
Other segment expenses		–3,549		–3,488		–3,111		14		12
Segment profit		3,387		3,297		3,295		3		0
Margins
Cloud subscriptions and support gross margin – SaaS/PaaS¹⁾ (in %)		59		59		64		–5pp		–4pp
Cloud subscriptions and support gross margin – IaaS²⁾ (in %)		10		10		–14		24pp		24pp
Cloud subscriptions and support gross margin (in %)		50		50		52		–2pp		–2pp
Gross margin (in %)		71		71		71		–0pp		–0pp
Segment margin (in %)		35		34		37		–2pp		–2pp

¹⁾ Software as a Service/Platform as a Service

²⁾ Infrastructure as a Service

Due to rounding, numbers may not add up precisely.


SAP Q2 2017 Quarterly Statement			16

SAP Business Network


€ millions, unless otherwise stated			Q1–Q2 2017		Q1–Q2 2016		D in %		D in %
	Actual Currency		Constant Currency		Actual Currency		Actual Currency		Constant Currency
Cloud subscriptions and support – SaaS/PaaS¹⁾		925		899		761		22		18
Cloud subscriptions and support – IaaS²⁾		0		0		0		NA		NA
Cloud subscriptions and support		925		899		761		22		18
Software licenses		0		0		0		<-100		<-100
Software support		11		11		14		–26		–25
Software licenses and support		11		11		14		–25		–25
Cloud and software		936		910		776		21		17
Services		202		198		143		41		38
Total segment revenue		1,138		1,107		919		24		21
Cost of cloud subscriptions and support – SaaS/PaaS¹⁾		–213		–208		–184		16		13
Cost of cloud subscriptions and support – IaaS²⁾		0		0		0		NA		NA
Cost of cloud subscriptions and support		–213		–208		–184		16		13
Cost of software licenses and support		–2		–2		0		>100		>100
Cost of cloud and software		–215		–209		–184		17		14
Cost of services		–152		–149		–116		31		29
Total cost of revenue		–367		–358		–300		22		19
Segment gross profit		771		749		619		25		21
Other segment expenses		–582		–568		–459		27		24
Segment profit		189		181		160		18		13
Margins
Cloud subscriptions and support gross margin – SaaS/PaaS¹⁾ (in %)		77		77		76		1pp		1pp
Cloud subscriptions and support gross margin – IaaS²⁾ (in %)		NA		NA		NA		NA		NA
Cloud subscriptions and support gross margin (in %)		77		77		76		1pp		1pp
Gross margin (in %)		68		68		67		0pp		0pp
Segment margin (in %)		17		16		17		–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 Q2 2017 Quarterly Statement			17

Reconciliation of Cloud Subscription Revenues and Margins


€ millions, unless otherwise stated				Q1–Q2 2017		Q1–Q2 2016		D in %		D in %
		Actual Currency		Constant Currency		Actual Currency		Actual Currency		Constant Currency
Cloud subscriptions and support revenue – SaaS/PaaS¹⁾	SAP Business Network segment		925		899		761		22		18
	Other		755		737		548		38		35
	Total		1,680		1,636		1,309		28		25
Cloud subscriptions and support revenue – IaaS²⁾			158		155		89		76		73
Cloud subscriptions and support revenue			1,837		1,791		1,399		31		28
Cloud subscriptions and support gross margin – SaaS/PaaS¹⁾ (in %)	SAP Business Network segment		77		77		76		1pp		1pp
	Other		58		59		64		–5pp		–5pp
	Total		69		69		71		–2pp		–2pp
Cloud subscriptions and support gross margin – IaaS²⁾ (in %)			10		10		–14		24pp		24pp
Cloud subscriptions and support gross margin (in %)			63		64		65		–2pp		–2pp

¹⁾ Software as a Service/Platform as a Service

²⁾ Infrastructure as a Service

Due to rounding, numbers may not add up precisely.


SAP Q2 2017 Quarterly Statement			18

Reconciliation fromNon-IFRS Numbers to IFRS Numbers – Quarter


€ millions, unless otherwise stated									Q2 2017						Q2 2016						D 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		932		0		932		–19		913		720		1		721		29		29		27
Software licenses		1,090		0		1,090		–3		1,087		1,040		2		1,042		5		5		4
Software support		2,736		0		2,736		–39		2,697		2,598		0		2,598		5		5		4
Software licenses and support		3,826		0		3,826		–42		3,784		3,639		2		3,640		5		5		4
Cloud and software		4,757		0		4,758		–61		4,696		4,359		2		4,361		9		9		8
Services		1,024		0		1,024		–18		1,006		878		0		878		17		17		15
Total revenue		5,782		0		5,782		–80		5,702		5,237		2		5,239		10		10		9

Operating Expense Numbers
Cost of cloud subscriptions and support		–410		59		–350						–312		59		–254		31		38
Cost of software licenses and support		–563		49		–514						–507		47		–460		11		12
Cost of cloud and software		–972		108		–865						–819		106		–713		19		21
Cost of services		–822		38		–784						–733		12		–721		12		9
Total cost of revenue		–1,794		146		–1,648						–1,552		118		–1,434		16		15
Gross profit		3,987		146		4,133						3,685		120		3,805		8		9
Research and development		–842		65		–777						–710		21		–689		19		13
Sales and marketing		–1,707		164		–1,544						–1,470		82		–1,388		16		11
General and administration		–278		32		–245						–229		12		–217		21		13
Restructuring		–237		237		0						–11		11		0		>100		NA
Other operating income/expense, net		3		0		3						4		0		4		–24		–24
Total operating expenses		–4,856		644		–4,212		76		–4,135		–3,968		245		–3,724		22		13		11

Profit Numbers
Operating profit		926		644		1,570		–3		1,567		1,269		247		1,516		–27		4		3
Othernon-operating income/expense, net		8		0		8						–101		0		–101		<-100		<-100
Finance income		36		0		36						38		0		38		–6		–6
Finance costs		–62		0		–62						–62		0		–62		0		0
Financial income, net		–26		0		–26						–23		0		–23		10		10
Profit before tax		908		644		1,552						1,144		247		1,391		–21		12
Income tax expense		–242		–191		–432						–331		–81		–412		–27		5
Profit after tax		666		453		1,120						813		167		979		–18		14
Attributable to owners of parent		668		453		1,122						816		167		982		–18		14
Attributable tonon-controlling interests		–2		0		–2						–3		0		–3		–35		–35

Key Ratios
Operating margin (in %)		16.0				27.2				27.5		24.2				28.9		–8.2pp		–1.8pp		–1.5pp
Effective tax rate (in %)³⁾		26.6				27.8						28.9				29.6		–2.3pp		–1.8pp
Earnings per share, basic (in €)		0.56				0.94						0.68				0.82		–18		14

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 Q2 2017 Quarterly Statement			19

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’snon-IFRS constant currency numbers with thenon-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 sitewww.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 Q2 2017 and Q2 2016 mainly results from tax effects of acquisition-related charges and share-based payment expenses.

Due to rounding, numbers may not add up precisely.


SAP Q2 2017 Quarterly Statement			20

Reconciliation fromNon-IFRS Numbers to IFRS Numbers – Half Year

€ millions, unless otherwise stated

Q1–Q2 2017

Q1–Q2 2016

D 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

1,837

–47

1,791

1,397

1,399

Software licenses

1,781

–26

1,755

1,649

1,651

Software support

5,467

–123

5,345

5,162

5,163

Software licenses and support

7,248

–148

7,100

6,811

6,813

Cloud and software

9,085

–195

8,891

8,208

8,212

Services

1,981

–44

1,938

1,755

Total revenue

11,066

11,067

–239

10,828

9,964

9,967

Operating Expense Numbers

Cost of cloud subscriptions and support

–793

122

–671

–603

118

–485

Cost of software licenses and support

–1,134

110

–1,024

–1,007

–908

Cost of cloud and software

–1,927

232

–1,695

–1,610

217

–1,393

Cost of services

–1,628

–1,543

–1,506

–1,476

Total cost of revenue

–3,555

317

–3,237

–3,116

247

–2,869

Gross profit

7,512

318

7,829

6,848

250

7,098

Research and development

–1,694

153

–1,541

–1,419

–1,370

Sales and marketing

–3,415

375

–3,041

–2,865

191

–2,674

General and administration

–569

–487

–460

–433

Restructuring

–242

242

–22

>100

Other operating income/expense, net

–1

<-100

Total operating expenses

–9,467

1,168

–8,299

164

–8,135

–7,882

535

–7,348

Profit Numbers

Operating profit

1,599

1,168

2,768

–75

2,693

2,082

538

2,620

–23

Othernon-operating income/expense, net

–10

–136

–93

Finance income

143

Finance costs

–156

–132

Financial income, net

–13

–59

–78

Profit before tax

1,576

1,168

2,744

1,887

538

2,425

–16

Income tax expense

–379

–359

–738

–504

–178

–683

–25

Profit after tax

1,197

810

2,006

1,382

360

1,742

–13

Attributable to owners of parent

1,189

810

1,999

1,388

360

1,748

–14

Attributable tonon-controlling interests

–5

<-100

Key Ratios

Operating margin (in %)

14.5

25.0

24.9

20.9

26.3

–6.4pp

–1.3pp

–1.4pp

Effective tax rate (in %)³⁾

24.1

26.9

26.7

28.1

–2.7pp

–1.3pp

Earnings per share, basic (in €)

0.99

1.67

1.16

1.46

–14


SAP Q2 2017 Quarterly Statement			21

³⁾ The difference between our effective tax rate (IFRS) and effective tax rate(non-IFRS) in the first half of 2017 and 2016 mainly results from tax effects of acquisition-related charges and share-based payment expenses.

Due to rounding, numbers may not add up precisely.


SAP Q2 2017 Quarterly Statement			22

Non-IFRS Adjustments – Actuals and Estimates

€ millions

Estimated Amounts for

Full Year 2017

Q2 2017

Q1–Q2
2017

Q2 2016

Q1–Q2
2016

Operating profit (IFRS)

926

1,599

1,269

2,082

Revenue adjustments

<20

Adjustment for acquisition-related charges

610 to 640

152

309

166

336

Adjustment for share-based payment expenses

900 to 1,150

254

618

177

Adjustment for restructuring¹⁾

200 to 250

237

242

Operating expense adjustments

644

1,168

245

535

Operating profit adjustments

644

1,168

247

538

Operating profit(non-IFRS)

1,570

2,768

1,516

2,620

¹⁾ Reflects our expectations for restructuring activities in our services and support business


SAP Q2 2017 Quarterly Statement			23

Non-IFRS Adjustments by Functional Areas


€ millions	Q2 2017										Q2 2016
€ millions	IFRS		Acquisition- Related		SBP¹⁾		Restruc- turing		Non-IFRS		IFRS		Acquisition- Related		SBP¹⁾		Restruc- turing		Non-IFRS
Cost of cloud and software		–972		81		27		0		–865		–819		97		9		0	–713
Cost of services		–822		2		36		0		–784		–733		3		9		0	–721
Research and development		–842		3		62		0		–777		–710		2		19		0	–689
Sales and marketing		–1,707		67		97		0		–1,544		–1,470		59		23		0	–1,388
General and administration		–278		0		32		0		–245		–229		4		8		0	–217
Restructuring		–237		0		0		237		0		–11		0		0		11	0
Other operating income/expense, net		3		0		0		0		3		4		0		0		0	4
Total operating expenses		–4,856		152		254		237		–4,212		–3,968		166		67		11	–3,724

¹⁾ Share-based payments


€ millions	Q1–Q2 2017										Q1–Q2 2016
€ millions	IFRS		Acquisition- Related		SBP¹⁾		Restruc- turing		Non-IFRS		IFRS		Acquisition- Related		SBP¹⁾		Restruc- turing		Non-IFRS
Cost of cloud and software		–1,927		164		68		0		–1,695		–1,610		195		22		0	–1,393
Cost of services		–1,628		4		81		0		–1,543		–1,506		6		24		0	–1,476
Research and development		–1,694		5		148		0		–1,541		–1,419		5		44		0	–1,370
Sales and marketing		–3,415		135		240		0		–3,041		–2,865		123		67		0	–2,674
General and administration		–569		1		81		0		–487		–460		7		20		0	–433
Restructuring		–242		0		0		242		0		–22		0		0		22	0
Other operating income/expense, net		8		0		0		0		8		–1		0		0		0	–1
Total operating expenses		–9,467		309		618		242		–8,299		–7,882		336		177		22	–7,348

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	Q2 2017		Q1–Q2 2017		Q2 2016		Q1–Q2 2016
Cost of cloud and software		104		105		1		2
Cost of services		109		110		2		5
Research and development		16		17		0		3
Sales and marketing		9		10		8		11
General and administration		0		0		0		1
Restructuring expenses		237		242		11		22


SAP Q2 2017 Quarterly Statement			24

Revenue by Region (IFRS andNon-IFRS) – Quarter


€ millions	Q2 2017										Q2 2016						D 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		249		0		249		0		248		168		0		168		48		48		48
Americas		577		0		577		–15		562		482		0		483		20		19		16
APJ		106		0		106		–3		103		70		0		70		52		52		47
Cloud subscriptions and support revenue		932		0		932		–19		913		720		1		721		29		29		27

Cloud and software revenue by region
EMEA		2,044		0		2,044		–10		2,035		1,872		0		1,872		9		9		9
Americas		1,948		0		1,948		–42		1,906		1,809		2		1,812		8		8		5
APJ		765		0		765		–10		756		678		0		678		13		13		11
Cloud and software revenue		4,757		0		4,758		–61		4,696		4,359		2		4,361		9		9		8

Total revenue by region
Germany		781		0		781		–2		779		681		0		681		15		15		14
Rest of EMEA		1,678		0		1,678		–10		1,668		1,588		0		1,589		6		6		5
Total EMEA		2,459		0		2,459		–12		2,447		2,270		0		2,270		8		8		8
United States		1,914		0		1,915		–41		1,873		1,739		2		1,741		10		10		8
Rest of Americas		480		0		480		–12		468		427		0		427		13		13		10
Total Americas		2,394		0		2,395		–54		2,341		2,165		2		2,167		11		10		8
Japan		252		0		252		3		255		200		0		200		26		26		28
Rest of APJ		676		0		676		–17		659		602		0		602		12		12		9
Total APJ		928		0		928		–14		914		802		0		802		16		16		14
Total revenue		5,782		0		5,782		–80		5,702		5,237		2		5,239		10		10		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’snon-IFRS constant currency numbers with thenon-IFRS number of the previous year’s respective period.

Due to rounding, numbers may not add up precisely.


SAP Q2 2017 Quarterly Statement			25

Revenue by Region (IFRS andNon-IFRS) – Half Year


€ millions	Q1–Q2 2017										Q1��Q2 2016						D 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		479		0		479		–1		478		329		0		329		46		45		45
Americas		1,159		0		1,159		–37		1,122		942		1		943		23		23		19
APJ		200		0		200		–9		191		127		0		127		58		58		51
Cloud subscriptions and support revenue		1,837		0		1,837		–47		1,791		1,397		1		1,399		31		31		28

Cloud and software revenue by region
EMEA		3,892		0		3,892		–44		3,848		3,557		1		3,558		9		9		8
Americas		3,723		0		3,724		–111		3,613		3,393		3		3,396		10		10		6
APJ		1,469		0		1,469		–40		1,429		1,259		0		1,259		17		17		14
Cloud and software revenue		9,085		0		9,085		–195		8,891		8,208		4		8,212		11		11		8

Total revenue by region
Germany		1,455		0		1,455		–2		1,453		1,286		0		1,286		13		13		13
Rest of EMEA		3,250		0		3,250		–48		3,202		3,030		0		3,031		7		7		6
Total EMEA		4,705		0		4,705		–50		4,655		4,316		1		4,317		9		9		8
United States		3,688		0		3,688		–101		3,587		3,344		3		3,347		10		10		7
Rest of Americas		911		0		911		–38		873		798		0		798		14		14		10
Total Americas		4,599		0		4,599		–139		4,460		4,142		3		4,145		11		11		8
Japan		450		0		450		–5		445		369		0		369		22		22		21
Rest of APJ		1,313		0		1,313		–45		1,268		1,137		0		1,137		15		15		12
Total APJ		1,763		0		1,763		–50		1,713		1,506		0		1,506		17		17		14
Total revenue		11,066		0		11,067		–239		10,828		9,964		4		9,967		11		11		9

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.


SAP Q2 2017 Quarterly Statement			26

Employees by Region and Functional Areas


	30.6.2017					30.6.2016
Full-time equivalents		EMEA	Americas	APJ	Total		EMEA	Americas	APJ	Total
Cloud and software		7,994	3,811	4,880	16,686		6,214	4,054	5,084	15,352
Services		5,281	4,789	4,752	14,821		6,443	4,006	3,738	14,187
Research and development		10,831	5,122	8,270	24,223		9,927	4,501	7,382	21,810
Sales and marketing		9,030	9,044	4,778	22,851		8,109	8,350	4,202	20,661
General and administration		2,708	1,824	1,039	5,572		2,542	1,677	990	5,208
Infrastructure		1,650	845	466	2,961		1,530	772	443	2,745
SAP Group (June 30)		37,494	25,435	24,184	87,114		34,764	23,359	21,838	79,962
Thereof acquisitions¹⁾		4	13	0	17		25	25	0	50
SAP Group (six months’ end average)		36,998	25,234	23,778	86,011		34,284	22,861	21,416	78,561

¹⁾ Acquisitions closed between January 1 and June 30 of the respective year


SAP Q2 2017 Quarterly Statement			27

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 Form20-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.

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 seehttp://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.


SAP Q2 2017 Quarterly Statement			28

SAP SE (SAP) 6-KCurrent report (foreign)