SAP – The World's Leading Business Software Company
Dr. Werner Brandt
CFO and Member of the Executive Board, SAP AG
Cheuvreux – 11th German Corporate Conference, Frankfurt, January 16th, 2012
Safe Harbor Statement
Any statements contained in this document that are not historical facts are forwardlooking 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 Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
Strong Pre-Announcement Best Ever Full-Year and Fourth Quarter
- Record Software Revenue: 25% Software Growth to €4 billion
- Exceeding Revenue Guidance: 17% SSRS Growth
- Exceeding Operating Profit Guidance: €4.78bn
- Strong Margin Growth: Expansion of 110 bps. to 33.1%
- Exceeding Company Expectations for SAP HANA and Mobile
- Outstanding Growth in core applications
- Strong Momentum for analytics and mobile applications
- Double-Digit Growth in All Regions
- 1,200 Additional FTE's in Q4, thereof 500 in Sales and Marketing
Financial Overview – Selected Income Statement Items Q4 & FY 2011 (Preliminary)
Financial Results in Detail
th
4
Quarter 2011 Performance (all numbers are approximate) |
|
|
|
|
| Software revenue (IFRS) |
€1.74bn |
+16% |
+17%* |
|
| SSRS revenue (Non-IFRS) |
€3.72bn |
+12% |
+13%* |
|
| Total revenue (Non-IFRS) |
€4.50bn |
+10% |
+10%* |
|
| Operating profit (Non-IFRS) |
€1.78bn |
+10% |
+10%* |
|
| Operating margin (Non-IFRS) |
39.6% |
flat |
10bps* |
|
| Full Year 2011 Performance (all numbers are approximate) |
|
|
|
|
| Software revenue (IFRS) |
€3.97bn |
+22% |
+25%* |
|
| SSRS revenue (Non-IFRS) |
€11.35bn |
+15% |
+17%* |
|
| Total revenue (Non-IFRS) |
€14.26bn |
+14% |
+15%* |
|
| Operating margin (Non-IFRS) |
€4.71bn |
+18% |
+19%* |
|
| Operating margin (Non-IFRS) |
|
33.0% +100bps |
+110bps* |
|
* at constant currency
FY 2011 – Performance vs. Guidance
|
SAP's Outlook
FY 2011 |
Actual Performance
FY 2011 |
|
Software and
Software-Related
Service Revenue
(Non-IFRS) |
Increase at the high end of
the range of
10% – 14%
at constant currencies |
9
Increase of ~17%
at constant currencies |
|
Operating
Profit
(Non-IFRS) |
Range of €4.45 – €4.65 billion
at constant currencies |
9
~€4.78*
at constant currencies |
|
*Resulting in a Operating Margin of 33.1% at constant currencies, an increase of 110bps
- y Snapshot: Q4 & FY 2011 Preliminary Results
- y SAP at a Glance
- y Driving Innovation at SAP Products and Strategy
- y SAP's Strategy for Continued Profitable Growth
SAP is the World's Leading Business Software Company
SAP is…
- y #1 in enterprise applications
- y #1 in SME applications
- y #1 in business analytics
- y #1 in enterprise mobility
SAP is a truly global company…
- y 176,000 customers
- y 120 countries
- y 55,000+ employees
- y €14.3B 2011 revenue
- y 34 global technology partners
- y 2,900+ certified partners
Our Purpose
VISION MAKE THE WORLD RUN BETTER
MISSION MAKE EVERY CUSTOMER A BEST-RUN BUSINESS
BY MID OF THE DECADE
€20bn 35% MARGIN 1 BILLION PEOPLE
Strong Financial Growth Eight Consecutive Quarters of Double Digit Growth
- Average order entry at +80% from existing customers
- ~30% order entry from SME
- Diversified revenue stream by region and industry
- Continued margin progression year-over-year operating margin +100 bps
- Strong operating cash flow €2.7 billion on average between 2008 and 2010
- Continued dividend payments
© 2011 SAP AG. All rights reserved. 11
Strong Free Cash Flow and Continued Dividend Payments
Increasing Recurring Revenue Streams – Basis for Sustainable and Stable Cash Flows
Overall IT Trends – Structural Shift in IT Spending Towards the Value Drivers in Applications Software
Transformation of the IT stack
© 2011 SAP AG. All rights reserved. 15
Overall IT Trends – Convergence
In Memory
Big Data |
On Mobile
IT-Consumerization |
In the Cloud
Increased availability |
|
|
|
|
|
y
Data volume for
enterprise
applications is
doubling every 18
months
y
100x – 1.000x faster
in data processing1 |
y
Smartphones
outsell PCs
y
By 2013, mobile
devices will be the
primary method of
internet access
worldwide |
y
Any access, any
workload anywhere
y
~80% of new
software in 2011
was available as
cloud services
y
Hybrid cloud
solutions drive TCO
and integration |
|
New Business Models
- y "Real"- real time business
- y Extending the enterprise
- y Mobile scenarios
Innovations Reshape Business IT World – SAP Orchestrates Analytics, Mobility, Cloud & In-Memory Capabilities
SAP's Answer to Big Data – In-Memory Technology Enables "Real" Real-Time Computing with SAP HANA
SAP HANA
- Make decisions faster by analyzing large volumes of data in real-time
- Data stored in-memory rather than on hard disk
- In-memory columnar processing optimized for modern multi-core
- Data source agnostic appliance
- 5 leading hardware partners: Cisco, IBM, HP, Fujitsu, Dell (80% of HW market)
Key differentiators
- Build new class of real-time applications and analytics
- Sophisticated planning engines, business functions and predictive analytics to provide insights on granular data
- Simplifying existing IT landscapes
- Direct access to operational data w/o affecting performance of ERP
- Strong pipeline for SAP HANA
- Strategic Workforce Planning is 1 st HANA-enabled application
SAP significantly exceeded its €100 million 2011 target for SAP HANA achieving software revenue of more than €160 million.
SAP is #1 in Enterprise Mobility – Most Comprehensive Mobile Enterprise Solution Set
Mobility
- Access SAP anytime & anywhere
- Building-up a device agnostic mobility strategy is critical
- Integrate "bring-yourown" in mobility strategy
- Security is key topic in mobility strategy
- Making mobile technology integral to business strategy will gain competitive advantage for customers
SAP Offering
- Integration to Back-endand Core-Systems
- Sybase Unwired Platform allows IT units & partners to easily create new/mobilize existing apps
- Mobile Apps to boost employee productivity, CRM and service for key industries; 30 Apps as of Q3
- Afaria ensures reliable, secure data across multiple device platforms
SAP also exceeded its 2011 target for mobile solutions, which contributed more than €100 million in software revenue.
Customers of All Sizes, Subsidiaries and Line of Businesses Benefit from Cloud & On-Demand Offering
Comprehensive SAP cloud portfolio:
- SAP Business ByDesign – integrated on-demand suite for mid market customers and subsidiaries
- Line-of-Business solutions (e.g. Sales & Sourcing OD) – extend on-premise core with ondemand
- Î Seamless integration on-premise & on-demand
- For SAP Business Suite customers:
- Î SAP Virtualization and Cloud Mgmt product in Nov 2011
Business Value
- SAP helps customers to run on-premise systems in the cloud and on virtualized and abstracted infrastructure
- Significant TCO-reduction through tools and services
- Simultaneously enabling as much automation as possible
- Customers and partners can combine all on-demand and on-premise solutions and services in a hybrid environment – incl. real-time analytics, in-memory computing and mobility
Comprehensive Cloud & On-Demand Solution Portfolio – Seamlessly Integrated for a Hybrid World
SAP to Accelerate Cloud Strategy with Planned Acquisition of SuccessFactors
- SAP to buy SuccessFactors for \$40.00 per share in cash, representing an enterprise value of approximately \$3.4 billion; transaction expected to close in Q1 2012
- SAP will gain immediate strength and leadership presence in the fast-growing segment of cloud-based applications for people and talent management
- SuccessFactors
-
1 cloud-based Human Capital Management solution provider
- Headquartered in San Mateo, California more than 1,450 employees
- Fast growing company: 50%+ topline growth in 9M 2011
- 15 million subscription users the largest paying subscription user base
-
More than 3,500 customers including deployments in SAP environments in diverse industries, e.g. Siemens
-
y Snapshot: Q4 & FY 2011 Preliminary Results
- y SAP at a Glance
- y Driving Innovation at SAP Products and Strategy
- y SAP's Strategy for Continued Profitable Growth
SAP's Strategy for Continued Profitable Growth
- y SAP is the clear leader in the enterprise application industry
- y By the middle of the SAP strives to achieve
- at least €20bn in total revenue
- an operating margin of 35%
- 1 billion people
- y SAP expects the key drivers of growth will be innovation:
- In-Memory technology
- On-device solutions
- On-demand solutions
- y SAP expects these innovations will pull through demand for SAP's stable core business
Together with our customers and partners, SAP helps people in businesses of all sizes and industries to collaborate better, decide better, adapt better and run better.
SAP – The World's Leading Business Software Company
Dr. Werner Brandt
CFO and Member of the Executive Board, SAP AG
Cheuvreux – 11th German Corporate Conference, Frankfurt, January 16th, 2012