Earnings Release • Apr 13, 2012
Earnings Release
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Ad-hoc | 13 April 2012 12:14
SAP AG: SAP Announces 2012 First Quarter Preliminary Results
SAP AG / Key word(s): Quarter Results/Preliminary Results
13.04.2012 12:14
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
First Quarter 2012 Non-IFRS Software and Software-Related Service
Revenue Increased 12% to EUR2.63 Billion (10% at Constant Currencies)
First Quarter 2012 Software Revenue Increased 4% to EUR637 Million (1%
at Constant Currencies)
First Quarter 2012 Non-IFRS Operating Profit Increased 7% to EUR834
Million (3% at Constant Currencies)
SAP Reiterates Full Year 2012 Outlook
SAP Expects Strong Second Quarter 2012 With Software Revenue Growth in
a Range of 15% - 20% (at Constant Currencies) and Non-IFRS Software and
Software-Related Service Revenue Growth in a Range of 14% - 16% (at
Constant Currencies)
WALLDORF, Germany - April 13, 2012 - After a preliminary review of its
first quarter 2012 performance, SAP AG (NYSE: SAP) today announced its
preliminary financial results for the first quarter ended March 31, 2012.
The Company reiterates its full-year outlook. Based on its robust pipeline
SAP expects a strong second quarter 2012 with software revenue growth in a
range of 15% - 20% at constant currencies and non-IFRS software and
software-related service revenue growth in a range of 14% - 16% at constant
currencies.
SAP's growth momentum continued in 2012 with a record first quarter in Asia
Pacific/Japan (APJ) and double-digit growth in many markets including Latin
America and Germany.
The company had sales execution issues in North America which impacted
first quarter performance. These issues have been resolved and the
necessary steps have been taken to ensure that North America is back on
track. After a record fourth quarter 2011, some European markets started
more slowly in 2012, but are well on track.
SAP's strategy is sound and the Company is executing on its innovation
pipeline ahead of schedule. SAP is well positioned to capitalize on the
major technology trends including big data, mobile, and cloud. Its cloud
business is gaining momentum with a strong positive impact from
SuccessFactors. SAP's and SuccessFactors' cloud portfolio showed robust
double-digit growth in billings year-over-year.
FINANCIAL RESULTS IN DETAIL
All 2012 figures in this release are approximate due to the preliminary
nature of the announcement.
First Quarter 2012
- IFRS software revenue was EUR0.64 billion (2011: EUR0.62 billion), an
increase of 4% (1% at constant currencies).
IFRS software and software-related service revenue was EUR2.62 billion
(2011: EUR2.33 billion), an increase of 13%. Non-IFRS software and
software-related service revenue was EUR2.63 billion (2011: EUR2.34
billion), an increase of 12% (10% at constant currencies).
IFRS total revenue was EUR3.35 billion (2011: EUR3.02 billion), an
increase of 11%. Non-IFRS total revenue was EUR3.36 billion (2011:
EUR3.04 billion), an increase of 10% (8% at constant currencies).
IFRS operating profit was EUR0.63 billion (2011: EUR0.60 billion), an
increase of 6%. Non-IFRS operating profit was EUR0.83 billion (2011:
EUR0.78 billion), an increase of 7% (3% at constant currencies).
IFRS operating margin was 18.8% (2011: 19.7%), a decrease of 0.9
percentage points. Non-IFRS operating margin was 24.8% (2011: 25.6%),
or 24.6% at constant currencies, a decrease of 0.8 percentage points (a
decrease of 1.0 percentage points at constant currencies).
Total headcount for the Group grew organically in the first quarter by
approximately 1,700 FTEs year-over-year in order to capture future
growth opportunities. Total headcount for the group at the end of the
first quarter was 59,400.
First quarter 2012 non-IFRS software and software-related service revenue
and non-IFRS operating profit excludes a deferred revenue write-down from
acquisitions of EUR7 million (2011: EUR17 million). Non-IFRS operating
profit additionally excludes acquisition-related charges of EUR120 million,
profit from discontinued activities of EUR7 million, share-based
compensation expenses of EUR83 million and restructuring expenses of EUR0
million (2011: EUR112 million, expenses of EUR2 million, EUR52 million and
EUR0 million).
Regional Performance - First Quarter 2012
IFRS and non-IFRS software revenue for the EMEA region: EUR279 million,
an increase of 4% (increase of 4% at constant currencies).
IFRS software and software-related service revenue for the EMEA region:
EUR1,233 million, an increase of 10%. Non-IFRS software and
software-related service revenue: EUR1,234 million, an increase of 9%
(increase of 9% at constant currencies).
IFRS and non-IFRS software and software-related service revenue for
Germany: EUR371 million, an increase of 12% (increase of 12% at
constant currencies).
IFRS and non-IFRS software revenue for the Americas region: EUR236
million, a decrease of 4% (decrease of 7% at constant currencies).
IFRS software and software-related service revenue for the Americas
region: EUR946 million, an increase of 12%. Non-IFRS software and
software-related service revenue: EUR952 million, an increase of 12%
(increase of 8% at constant currencies).
IFRS software and software-related service revenue for the United
States: EUR692 million, an increase of 12%. Non-IFRS software and
software-related service revenue: EUR698 million, an increase of 11%
(increase of 6% at constant currencies).
IFRS and non-IFRS software revenue for the APJ region: EUR123 million,
an increase of 19% (increase of 16% at constant currencies).
IFRS software and software-related service revenue for the APJ region:
EUR440 million, an increase of 22%. Non-IFRS software and
software-related service revenue: EUR440 million, an increase of 22%
(increase of 16% at constant currencies).
IFRS software and software-related service revenue for Japan: EUR144
million, an increase of 16%. Non-IFRS software and software-related
service revenue: EUR144 million, an increase of 15% (increase of 6% at
constant currencies).
Business Outlook
SAP reiterates the following outlook for the full-year 2012:
The Company expects full-year 2012 non-IFRS software and
software-related service revenue to increase in a range of 10% - 12% at
constant currencies (2011: EUR11.35 billion). This includes a
contribution of up to 2 percentage points from SuccessFactors'
business.
The Company expects full-year 2012 non-IFRS operating profit to be in a
range of EUR5.05 billion - EUR5.25 billion at constant currencies
(2011: EUR4.71 billion). Full-year 2012 non-IFRS operating profit
excluding SuccessFactors is expected to be in a similar range.
The Company projects a full-year 2012 IFRS effective tax rate of 26.5%
In addition to the full-year outlook, SAP is providing the following
outlook for the second quarter 2012:
The Company expects second quarter 2012 software revenue to increase in
a range of 15% - 20% at constant currencies (second quarter 2011:
EUR838 million).
The Company expects second quarter 2012 non-IFRS software and
software-related service revenue to increase in a range of 14% - 16% at
constant currencies (second quarter 2011: EUR2.59 billion).
SAP will provide further details of its first quarter 2012 results on April
25th.
Information and Explaination of the Issuer to this News:
Financial Analyst and Media Conference Call
SAP senior management will host a conference call for financial analysts
and media today at 2:30 pm (CET) / 1:30 pm (GMT)/ 8:30 am (Eastern) / 5:30
am (Pacific).
The participant dial-in details for the call are as follows:
United Kingdom: +44 (0) 20 7784 1036
United States: +1 646 254 3362
France: +33 (0) 1 70 48 01 66
Germany: +49 (0) 69 2999 3286
Passcode: 9884953
A replay of the call will be available for two weeks following the call.
Replay numbers can be found below:
Germany: +49 (0) 69 2222 2236
United Kingdom: +44 (0) 20 7111 1244
United States: +1 347 366 9565
France: +33 (0) 1 74 20 28 00
Replay Passcode: 9884953
Additional Information
First quarter 2012 revenue, profit and cash flow figures include the
revenue, profits and cash flows from SuccessFactors starting on February
16th, 2012. For the prior-year period those numbers were not included.
For a more detailed description of the non-IFRS adjustments and their
limitations as well as our constant currency and free cash flow figures see
Explanations of Non-IFRS Measures online (www.sap.com/investor).
For more information, financial community only:
Stefan Gruber +49 (6227) 7-44872 [email protected], CET
Follow SAP Investor Relations on Twitter at @sapinvestor.
For more information, press only:
Christoph Liedtke +49 (6227) 7-50383 [email protected], CET
Hubertus Kuelps +49 (6227) 7-40011 [email protected], CET
Jim Dever +1 (610) 661-2161 [email protected], ET
Lynn Ong +65 6768 6439 [email protected], SGT (GMT +8)
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)
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 183,000 customers to operate profitably,
adapt continuously, and grow sustainably. For more information, visit
www.sap.com.
Any statements contained in this document that are not historical facts are
forward-looking statements as defined in the U.S. Private Securities
Litigation Reform Act of 1995. Words such as 'anticipate,' 'believe,'
'estimate,' 'expect,' 'forecast,' 'intend,' 'may,' 'plan,' 'project,'
'predict,' 'should' and 'will' and similar expressions as they relate to
SAP are intended to identify such forward-looking statements. SAP
undertakes no obligation to publicly update or revise any forward-looking
statements. All forward-looking statements are subject to various risks and
uncertainties that could cause actual results to differ materially from
expectations. The factors that could affect SAP's future financial results
are discussed more fully in SAP's filings with the U.S. Securities and
Exchange Commission ('SEC'), including SAP's most recent Annual Report on
Form 20-F filed with the SEC. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of their
dates.
(c) 2012 SAP AG. All rights reserved.
SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects
Explorer, SAP HANA, StreamWork, and other SAP products and services
mentioned herein as well as their respective logos are trademarks or
registered trademarks of SAP AG in Germany and other countries.
Business Objects and the Business Objects logo, BusinessObjects, Crystal
Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business
Objects products and services mentioned herein as well as their respective
logos are trademarks or registered trademarks of Business Objects Software
Ltd. Business Objects is an SAP company. Sybase and Adaptive Server,
iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services
mentioned herein as well as their respective logos are trademarks or
registered trademarks of Sybase, Inc. Sybase is an SAP company.
Crossgate, m@gic EDDY, B2B 360 , and B2B 360 Services are registered
trademarks of Crossgate AG in Germany and other countries. Crossgate is an
SAP company.
All other product and service names mentioned are the trademarks of their
respective companies. Data contained in this document serves informational
purposes only. National product specifications may vary.
These materials are subject to change without notice. These materials are
provided by SAP AG 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.
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
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13.04.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
Language: English
Company: SAP AG
Dietmar-Hopp-Allee 16
69190 Walldorf
Germany
Phone: +49 (0)6227 - 74 74 74
Fax: +49 (0)6227 - 75 75 75
E-mail: [email protected]
Internet: www.sap.com
ISIN: DE0007164600
WKN: 716460
Indices: DAX
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard),
Stuttgart; Freiverkehr in Düsseldorf, Hamburg, Hannover,
München; Terminbörse EUREX; NYSE
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