SAP SE 
By WALLDORF, Germany, Jan. 27 /PRNewswire-FirstCall/ -- SAP AG (NYSE: SAP) today announced its preliminary financial results for the fourth quarter and full-year ended December 31, 2009.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050310/SFTH009LOGO-a )
FINANCIAL HIGHLIGHTS - Full Year 2009
SAP - Full Year 2009(1)
---------------------
U.S. GAAP
---------
FY FY %
EUR million, unless stated otherwise 2009 2008 change
---------------------------------- ----- ----- -------
Software revenues 2,606 3,606 -28
----------------- ----- ----- ---
Software and
software-
related service
revenues 8,197 8,457 -3
---------------- ----- ----- ---
Total revenues 10,671 11,565 -8
-------------- ------ ------ ---
Operating
expenses -8,031 -8,725 -8
--------- ------ ------ ---
-Thereof
restructuring
charges -196 - -
-------------- ---- --- ---
Operating income 2,640 2,840 -7
---------------- ----- ----- ---
Operating margin
(%) 24.7 24.6 0.1pp
---------------- ---- ---- -----
Income from
continuing
operations 1,825 1,928 -5
----------- ----- ----- ---
Net income 1,789 1,869 -4
---------- ----- ----- ---
Basic EPS from
cont. operations
(EUR) 1.54 1.62 -5
----------------- ---- ---- ---
SAP - Full Year 2009(1)
---------------------
Non-GAAP(2)
----------
% change
EUR million, unless stated FY FY % const.
otherwise 2009 2008 change curr.(3)
------------------------- ----- ----- ------- -------------
Software revenues 2,606 3,606 28 -27
----------------- ----- ----- --- ---
Software and
software-
related service
revenues 8,208 8,623 -5 -5
---------------- ----- ----- --- ---
Total revenues 10,682 11,731 -9 -9
-------------- ------ ------ --- ---
Operating
expenses -7,766 -8,428 -8 -8
--------- ------ ------ --- ---
-Thereof
restructuring
charges -196 - - -
-------------- ---- --- --- ---
Operating income 2,916 3,303 -12 -11
---------------- ----- ----- --- ---
Operating margin
(%) 27.3 28.2 -0.9pp -0.6pp
---------------- ---- ---- ------ ------
Income from
continuing
operations 2,036 2,269 -10
----------- ----- ----- ---
Net income 2,000 2,210 -10
---------- ----- ----- ---
Basic EPS from
cont. operations
(EUR) 1.71 1.91 -10
----------------- ---- ---- ---
(1) All figures are preliminary and unaudited.
(2) Adjustments in the revenue line items are for support revenue that
the acquired entity would have recognized had it remained a stand-
alone entity but that SAP is not permitted to recognize as revenue
under U.S. GAAP as a result of business combination accounting
rules. Adjustments in the operating expense line items are for
acquisition-related charges. See Explanations of Non-GAAP Measures
for details.
(3) 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-GAAP constant currency numbers with the non-
GAAP number of the previous year's respective period. See
Explanations of Non-GAAP Measures for details.
Revenues - Full Year 2009
-- U.S. GAAP software and software-related service revenues were euro 8.20
billion (2008: euro 8.46 billion), a decrease of 3%. Non-GAAP software
and software-related service revenues were euro 8.21 billion (2008: euro
8.62 billion), a decrease of 5% (5% at constant currencies).
-- U.S. GAAP total revenues were euro 10.67 billion (2008: euro 11.57
billion), a decrease of 8%. Non-GAAP total revenues were euro 10.68
billion (2008: euro 11.73 billion), a decrease of 9% (9% at constant
currencies).
-- U.S. GAAP software revenues were euro 2.61 billion (2008: euro 3.61
billion), a decrease of 28% (27% at constant currencies).
Full Year 2009 Non-GAAP revenue figures exclude an acquisition-related deferred support revenue write-down of euro 11 million (2008: euro 166 million).
Income - Full Year 2009
-- U.S. GAAP operating income was euro 2.64 billion (2008: euro 2.84
billion), a decrease of 7%. Non-GAAP operating income was euro 2.92
billion (2008: euro 3.30 billion), a decrease of 12% (11% at constant
currencies). U.S. GAAP and Non-GAAP operating income were negatively
impacted by restructuring charges of euro 196 million resulting from the
previously announced reduction of positions.
-- U.S. GAAP operating margin was 24.7% (2008: 24.6%), an increase of 0.1
percentage points. Non-GAAP operating margin was 27.3% (2008: 28.2%),
or 27.6% at constant currencies, a decrease of 0.9 percentage points
(0.6 percentage points at constant currencies). The euro 196 million in
restructuring charges resulting from the previously announced reduction
of positions negatively impacted the U.S. GAAP and Non-GAAP operating
margin by 1.8 percentage points.
-- U.S. GAAP income from continuing operations was euro 1.83 billion (2008:
euro 1.93 billion), a decrease of 5%. Non-GAAP income from continuing
operations was euro 2.04 billion (2008: euro 2.27 billion), a decrease
of 10%. U.S. GAAP and Non-GAAP income from continuing operations were
negatively impacted by restructuring charges of euro 138 million, net of
tax, resulting from the previously announced reduction of positions.
-- U.S. GAAP basic earnings per share from continuing operations were euro
1.54 (2008: euro 1.62), a decrease of 5%. Non-GAAP earnings per share
from continuing operations were euro 1.71 (2008: euro 1.91), a decrease
of 10%. The restructuring charges, net of tax, resulting from the
previously announced reduction of positions negatively impacted the U.S.
GAAP and Non-GAAP basic earnings per share by euro 0.12.
Full Year 2009 Non-GAAP operating income excludes an acquisition-related deferred support revenue write-down and acquisition-related charges totaling euro 275 million (2008: euro 463 million), and Full Year 2009 Non-GAAP income from continuing operations and Non-GAAP earnings per share from continuing operations exclude an acquisition-related deferred support revenue write-down and acquisition-related charges totaling euro 211 million net of tax (2008: euro 341 million).
Cash Flow - Full Year 2009
Operating cash flow from continuing operations was euro 3.04 billion (2008: euro 2.18 billion), an increase of 39%. Free cash flow was euro 2.81 billion (2008: euro 1.84 billion), an increase of 52%. Free cash flow was 26% of total revenues (2008: 16%). At December 31, 2009, SAP had a total group liquidity of euro 2.28 billion (December 31, 2008: euro 1.66 billion), which includes cash and cash equivalents, restricted cash and short term investments. At December 31, 2009, net liquidity, defined as total group liquidity less bank liabilities, was euro 1.58 billion.
FINANCIAL HIGHLIGHTS - Fourth Quarter 2009
SAP - Fourth Quarter 2009(1)
----------------------------
U.S. GAAP
EUR million, unless stated otherwise Q4/2009 Q4/2008 % change
---------------------------------- ------- ------- --------
Software revenues 1,119 1,322 -15
----------------- ----- ----- ---
Software and
software-
related service
revenues 2,565 2,666 -4
---------------- ----- ----- ---
Total revenues 3,189 3,487 -9
-------------- ----- ----- ---
Operating
expenses -2,134 -2,212 -4
--------- ------ ------ ---
-Thereof
restructuring
charges -10 - -
-------------- --- --- ---
Operating income 1,055 1,275 -17
---------------- ----- ----- ---
Operating margin
(%) 33.1 36.6 -3.5pp
---------------- ---- ---- ------
Income from
continuing
operations 748 860 -13
----------- --- --- ---
Net income 727 830 -12
---------- --- --- ---
Basic EPS from
cont. operations
(EUR) 0.63 0.72 -13
----------------- ---- ---- ---
SAP - Fourth Quarter 2009(1)
----------------------------
Non-GAAP(2)
% change
% const.
EUR million, unless stated otherwise Q4/2009 Q4/2008 change curr.(3)
---------------------------------- ------- ------- ------ --------
Software revenues 1,119 1,322 -15 -14
------------------------------------ ----- ----- --- ---
Software and
software-
related service
revenues 2,565 2,692 -5 -2
---------------- ----- ----- --- ---
Total revenues 3,189 3,513 -9 -7
-------------- ----- ----- --- ---
Operating
expenses -2,070 -2,140 -3 0
--------- ------ ------ --- ---
-Thereof
restructuring
charges -10 - - -
-------------- --- --- --- ---
Operating income 1,119 1,373 -18 -16
---------------- ----- ----- --- ---
Operating margin
(%) 35.1 39.1 -4.0pp -4.1pp
---------------- ---- ---- ------ ------
Income from
continuing
operations 797 930 -14
----------- --- --- ---
Net income 776 900 -14
---------- --- --- ---
Basic EPS from
cont. operations
(EUR) 0.67 0.78 -14
----------------- ---- ---- ---
(1) All figures are preliminary and unaudited.
(2) Adjustments in the revenue line items are for support revenue that
the acquired entity would have recognized had it remained a stand-
alone entity but that SAP is not permitted to recognize as revenue
under U.S. GAAP as a result of business combination accounting
rules. Adjustments in the operating expense line items are for
acquisition-related charges. See Explanations of Non-GAAP Measures
for details.
(3) 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-GAAP constant currency numbers with the non-
GAAP number of the previous year's respective period. See
Explanations of Non-GAAP Measures for details.
Revenues - Fourth Quarter 2009
-- U.S. GAAP software and software-related service revenues were euro 2.57
billion (2008: euro 2.67 billion), a decrease of 4%. Non-GAAP software
and software-related service revenues were euro 2.57 billion (2008: euro
2.69 billion), a decrease of 5% (2% at constant currencies).
-- U.S. GAAP total revenues were euro 3.19 billion (2008: euro 3.49
billion), a decrease of 9%. Non-GAAP total revenues were euro 3.19
billion (2008: euro 3.51 billion), a decrease of 9% (7% at constant
currencies).
-- U.S. GAAP software revenues were euro 1.12 billion (2008: euro 1.32
billion), a decrease of 15% (14% at constant currencies).
Income - Fourth Quarter 2009
-- U.S. GAAP operating income was euro 1.06 billion (2008: euro 1.28
billion), a decrease of 17%. Non-GAAP operating income was euro 1.12
billion (2008: euro 1.37 billion), decrease of 18% (16% at constant
currencies). U.S. GAAP and Non-GAAP operating income were negatively
impacted by restructuring charges of euro 10 million resulting from the
previously announced reduction of positions.
-- U.S. GAAP operating margin was 33.1% (2008: 36.6%), a decrease of 3.5
percentage points. Non-GAAP operating margin was 35.1% (2008: 39.1%),
or 35.0% at constant currencies, a decrease of 4.0 percentage points
(4.1 percentage points at constant currencies). The euro 10 million in
restructuring charges resulting from the previously announced reduction
of positions negatively impacted the U.S. GAAP and Non-GAAP operating
margin by 0.3 percentage points.
-- U.S. GAAP income from continuing operations was euro 0.75 billion (2008:
euro 0.86 billion), a decrease of 13%. Non-GAAP income from continuing
operations was euro 0.80 billion (2008: euro 0.93 billion), a decrease
of 14%. U.S. GAAP and Non-GAAP income from continuing operations were
negatively impacted by restructuring charges of euro 7 million, net of
tax, resulting from the previously announced reduction of positions.
-- U.S. GAAP basic earnings per share from continuing operations were euro
0.63 (2008: euro 0.72), a decrease of 13%. Non-GAAP basic earnings per
share from continuing operations were euro 0.67 (2008: euro 0.78), a
decrease of 14% year-over-year. The restructuring charges, net of tax,
resulting from the previously announced reduction of positions
negatively impacted the U.S. GAAP and Non-GAAP basic earnings per share
by euro 0.01.
Fourth Quarter 2009 Non-GAAP operating income excludes acquisition-related charges totaling euro 64 million (2008: euro 98 million, which also included an acquisition-related deferred support revenue write-down), and Fourth Quarter 2009 Non-GAAP income from continuing operations and Non-GAAP earnings per share from continuing operations exclude acquisition-related charges totaling euro 49 million net of tax (2008: euro 70 million, which also included a deferred revenue write-down).
"As a result of a very difficult and unstable market environment that began in the third quarter of 2008 and then continued into 2009, we rapidly put into place a plan to reduce operating expenses in order to protect our operating margin. I am pleased to report that we exceeded our initial expectations," said Werner Brandt, CFO of SAP. "In 2009, we significantly reduced Non-GAAP operating expenses by around euro 650 million to euro 7.8 billion despite restructuring costs of approximately euro 200 million. The Non-GAAP operating margin at constant currencies was 27.6% which included a negative impact of 1.8 percentage points related to the restructuring charge. For 2010, we will continue to maintain strict cost controls with a spotlight on further margin expansion."
Leo Apotheker, CEO of SAP continued, "Along with margin expansion for 2010, we are also ready to return to top-line growth, although the market continues to be challenging and uncertainty among customers still exists. Despite the difficult environment last year, we never lost focus on innovation, which is the cornerstone for growth going forward. Building on a strong foundation, we will drive growth by continuing to strengthen our core business and expand beyond the core with new products and technologies that speed implementation, provide for instant consumption and are easy accessible from anywhere, anytime, and from a broad range of devices."
IFRS Financial Data
SAP will discontinue its U.S. GAAP reporting and will only report financial data under IFRS from fiscal 2010 onwards. The guidance provided by SAP for 2010 is based on Non-IFRS numbers that are derived from SAP's IFRS figures by excluding acquisition-related charges and discontinued activities. To prepare the capital markets for this change, IFRS financial data are provided in the financial section of this press release.
Business Outlook
SAP is providing the following outlook for the full-year 2010:
-- The Company expects full-year 2010 Non-IFRS software and software
related service revenue to increase in a range of 4% to 8% at constant
currencies (2009: euro 8.2 billion).
-- The Company expects its full-year 2010 Non-IFRS operating margin to be
in a range of 30% - 31% at constant currencies (2009: 27.4%).
-- The Company projects an effective tax rate of 27.5% - 28.5% (based on
IFRS) for 2010 (2009: 26.7%).
KEY EVENTS - Fourth Quarter 2009
-- In the fourth quarter of 2009, SAP closed major contracts in several key
regions including Achmea and Rabobank Nederland, Aeroflot Russian
Airlines, AOK, Credit Agricole S.A., Deutsche Bank AG, Hilti AG,
NMBS-SNCB Group, and Talanx AG in EMEA; 3M Company, Baker & McKenzie,
Dairy Farmers of America, Inc., Pfizer Inc., Servicios Nacional de
Chocolates S.A., Sybase Inc., Verizon Services Corporation, and W.W.
Grainger, Inc. in Americas; and Daiwa House Industry Co., Ltd.,
Department of Defence, Australia, Hubei Electric Power Corporation,
Malaysian Airline System Berhad, National Australia Bank Limited,
Singapore Power Ltd, and Vietnam National Petroleum Corporation in the
Asia Pacific Japan region.
-- In December, Deutsche Bank and SAP signed a letter of intent to start a
multi-year initiative in 2010 to replace individual software solutions
in its home market by a new core banking system based on SAP for Banking
solutions. The SAP implementation underpins the bank's strategy to push
for a high degree of industrialization and standardization of processes.
-- On December 17, SAP announced that Valero Energy Corporation signed a
global enterprise agreement with SAP that will create a tighter
relationship between the two companies, including a particular focus on
collaboration on solution innovation and development over the next five
years.
-- On December 10, SAP announced the new SAP Business Objects
Sustainability Performance Management application designed to help
businesses more easily set sustainability goals and objectives, measure
and communicate performance, and reduce data collection costs and
errors. The new application helps organizations focus on improving
economic, social and environmental performance rather than spending time
on data collection and report compilation. The software features a
library of key sustainability performance indicators and is the first
solution to be certified by the Global Reporting Initiative Certified
Software and Tools Program. The Global Reporting Initiative (GRI) is a
network-based organization that has pioneered the development of the
world's most widely used sustainability reporting framework and is
committed to its continuous improvement and application worldwide.
-- On December 7, SAP further extended its modular, market-leading solution
offerings tailored for the banking industry by announcing innovations to
its industry-specific banking software that supports banks' business
processes from the front to the back office.
-- On December 1, SAP announced that the 2009 Key Performance Indicator
achievements of the SAP User Group Executive Network (SUGEN) SAP
Enterprise Support program have shown clear value to participating SAP
customers.
-- On November 20, SAP reported that market research firm IDC identified
SAP as a leading vendor of customer information systems (CIS) and
customer relationship management (CRM) systems for the utilities
industry. The IDC study, published by IDC Energy Insights, is conducted
on an annual basis. The report evaluated the seven most relevant vendors
of utility-specific CIS / CRM systems in the light of the challenges of
the new energy economy. SAP received the highest ratings in the category
"ownership confidence" and the second highest ratings in the category
"ability to address market needs."
-- On November 19, SAP was named as a leader in business performance
solutions in a report by independent analyst firm Forrester Research. In
the November 2009 report - "The Forrester Wave: Business Performance
Solutions, Q4 2009" - SAP was positioned as a leader and ranked with the
strongest overall current offering out of 10 other vendors.
-- On October 27, SAP unveiled an interactive sustainability map for the
SAP EcoHub solution marketplace, providing a clear view of the ecosystem
of sustainability and "Green IT" solutions and services available from
SAP and its partners. By simply clicking on defined areas in the SAP
sustainability map within SAP EcoHub, customers can easily discover,
evaluate and buy sustainability solutions and services from SAP and its
partners.
-- On October 21, SAP announced that Siemens AG, a global leader in
electronics and electrical engineering, expanded its strategic
relationship with SAP through its selection of the SAP Supplier
Relationship Management application for Siemens' worldwide e-procurement
operations. Also announced was the completion of Siemens' contract
renewal for SAP maintenance support services for all SAP solutions based
on SAP's maintenance standards for large customers for duration of three
years.
Use of Non-GAAP and Non-IFRS Financial Measures
This press release contains certain financial measures such as Non-GAAP and Non-IFRS revenues, Non-GAAP and Non-IFRS operating income, Non-GAAP and Non-IFRS operating margin, free cash flow, constant currency revenue and operating income measures, as well as U.S. Dollar based Non-GAAP revenue numbers. These measures are not prepared in accordance with U.S. GAAP or IFRS and therefore are considered Non-GAAP or Non-IFRS financial measures. SAP's Non-GAAP and Non-IFRS financial measures may not correspond to Non-GAAP and Non-IFRS financial measures that other companies report. The Non-GAAP and Non-IFRS financial measures that SAP reports should be considered in addition to, and not as a substitute for or superior to, revenue, operating margin or SAP's other measures of financial performance prepared in accordance with U.S. GAAP and IFRS. See the financial section of this press release for additional information regarding the Non-GAAP and Non-IFRS measures included in this press release and for the reconciliations to the corresponding U.S. GAAP and IFRS measures.
Webcast / Supplementary Financial Information
SAP senior management will host a press conference in Frankfurt today at 10:00 AM (CET) / 9:00 AM (GMT) / 4:00 AM (Eastern) / 1:00 AM (Pacific), followed by an investor conference at 2:00 PM (CET) / 1:00 PM (GMT) / 8:00 AM (Eastern) / 5:00 AM (Pacific). Both conferences will be web cast live on the Company's website at http://www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the full-year and quarterly results can be found at http://www.sap.com/investor.
Note to editors (TV/ radio/ print/ online)
SAP will post material from the press conference as well as collective TV interviews with SAP CEO Leo Apotheker in both English and German, in which he will discuss the Company's Q4 2009 and full-year 2009 financial results. You can find these interviews on the SAP stock footage platform www.sap.com/stockfootage on Wednesday, January 27, 2010, following the event. The interviews will be conducted by TV journalists in English and German language.
These interviews will be published in their entirety and without any edits, as well as for your unrestricted use free of charge (also for parts of it). In addition, these clips are not branded, are clean feed, and will be available as high resolution video files, as well as mp3 files for radio journalists. SAP will also broadcast these clips via satellite starting at approximately 11:35 a.m. CET. If you are interested in recording this feed, please contact us via broadcast@sap.com for the necessary satellite and technical information.
About SAP
SAP is the world's leading provider of business software, offering applications and services that enable companies of all sizes and in all industries to become best-run businesses. With approximately 95,000 customers in over 120 countries, SAP is listed on several exchanges, including the Frankfurt stock exchange and NYSE, under the symbol "SAP." (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," "outlook," "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.
Copyright © 2010 SAP AG. All rights reserved.
SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP Business ByDesign, 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, Business Objects, 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 S.A. in the United States and in other countries. Business Objects 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.
For more information, press only:
Christoph Liedtke, +49 (6227) 7-50383,
christoph.liedtke@sap.com, CET
--------------------------------------
Guenter Gaugler +49 (6227) 7-65416, guenter.gaugler@sap.com,
CET
------------------------------------------------------------
Jim Dever +1 (610) 661-2161, james.dever@sap.com, ET
----------------------------------------------------
For more information, financial community only:
Stefan Gruber, +49 (6227) 7-44872, investor@sap.com, CET
--------------------------------------------------------
Martin Cohen, +1 (212) 653-9619, investor@sap.com, ET
-----------------------------------------------------
Appendix - Financial Information to Follow
Financial Information
for the Fourth Quarter and the Full Year 2009
- Condensed, Preliminary and Unaudited -
Page
U.S. GAAP Financial Information
Financial Statements
Statements of Income F1 and F2
Balance Sheets F3
Statements of Cash Flows F4
Supplementary Financial Information
Reconciliations from Non-GAAP Numbers to U.S. GAAP
Numbers F5 and F6
Reconciliations from Non-GAAP Revenue in U.S. Dollar
to U.S. GAAP Revenue in Euro F7
Revenue by Region F8 and F9
Share-Based Compensation F10
Free Cash Flow F10
Days Sales Outstanding F10
Headcount F10
Multi-Quarter Summary F11
Explanations of Non-GAAP Measures F12 to F14
IFRS Financial Information
Financial Statements
Statements of Income F15
Statements of Financial Position F16
Supplementary Financial Information
Reconciliations from U.S. GAAP and Non-GAAP to IFRS
and Non-IFRS Numbers F17
U.S. GAAP -IFRS Significant Differences with Impact on
Income F18
Explanations of Non-IFRS Measures F19
CONSOLIDATED STATEMENTS OF INCOME
(U.S. GAAP; preliminary and unaudited)
EUR millions, unless otherwise stated Three months ended December 31
------------------------------
2009 2008 Change in %
---- ---- -----------
Software revenue 1,119 1,322 -15
Support revenue 1,364 1,269 7
Subscription and other software-
related service revenue 82 75 9
Software and software-related
service revenue 2,565 2,666 -4
Consulting revenue 519 666 -22
Training revenue 71 111 -36
Other service revenue 18 30 -40
Professional services and other
service revenue 608 807 -25
Other revenue 16 14 14
------------- --- --- ---
Total revenue 3,189 3,487 -9
------------- ----- ----- ---
Cost of software and software-
related services -457 -480 -5
Cost of professional services and
other services -439 -565 -22
Research and development -490 -395 24
Sales and marketing -602 -629 -4
General and administration -163 -145 12
Restructuring -10 0 N/A
Other operating income/expense, net 27 2 >100
----------------------------------- --- --- ----
Total operating expenses -2,134 -2,212 -4
------------------------ ------ ------ ---
Operating income 1,055 1,275 -17
---------------- ----- ----- ---
Other non-operating income/
expense, net -17 -50 -66
Financial income/expense, net -19 -29 -34
----------------------------- --- --- ---
Income from continuing operations
before
income taxes 1,019 1,196 -15
------------ ----- ----- ---
Income taxes -271 -336 -19
------------ ---- ---- ---
Income from continuing operations 748 860 -13
--------------------------------- --- --- ---
Loss from discontinued operations,
net of tax -21 -30 -30
---------------------------------- --- --- ---
Net income 727 830 -12
---------- --- --- ---
-Net income attributable to
noncontrolling interests* 1 0 N/A
-Net income attributable to
shareholders of SAP AG 726 830 -13
Earnings per share (EPS)
EPS from continuing operations -
basic in EUR 0.63 0.72 -13
EPS from continuing operations -
diluted in EUR 0.63 0.72 -13
EPS from net income attributable to
shareholders of SAP AG - basic in EUR 0.61 0.70 -13
EPS from net income attributable to
shareholders of SAP AG - diluted in
EUR 0.61 0.70 -13
Weighted average number of shares in
millions, treasury stock excluded 1,189 1,187
------------------------------------ ----- -----
Key ratios
Operating margin in % 33.1 36.6 -3.5pp
Effective tax rate from continuing
operations in % 26.6 28.1
*Due to the first-time application of SFAS 160, Noncontrolling
Interests in Consolidated Financial Statements, an amendment of
ARB No. 51 the term minority interest has been replaced with
noncontrolling interests and the categorization of noncontrolling
interests is now shown below net income. The prior year figures
have also been changed as a result of the adoption of this
standard.
CONSOLIDATED STATEMENTS
OF INCOME
(U.S. GAAP; preliminary
and unaudited)
EUR millions, unless otherwise stated Twelve months ended December 31
-------------------------------
Change
2009 2008 in %
---- ---- -------
Software revenue 2,606 3,606 -28
Support revenue 5,285 4,593 15
Subscription and other
software-related
service revenue 306 258 19
Software and software-
related service revenue 8,197 8,457 -3
Consulting revenue 2,074 2,498 -17
Training revenue 273 434 -37
Other service revenue 85 107 -21
Professional services and
other service revenue 2,432 3,039 -20
Other revenue 42 69 -39
------------- --- --- ---
Total revenue 10,671 11,565 -8
------------- ------ ------ ---
Cost of software and
software-related
services -1,649 -1,646 0
Cost of professional
services and other
services -1,862 -2,296 -19
Research and development -1,608 -1,631 -1
Sales and marketing -2,192 -2,540 -14
General and
administration -556 -623 -11
Restructuring -196 0 N/A
Other operating income/
expense, net 32 11 >100
----------------------- --- --- ----
Total operating expenses -8,031 -8,725 -8
------------------------ ------ ------ ---
Operating income 2,640 2,840 -7
---------------- ----- ----- ---
Other non-operating
income/expense, net -80 -25 >100
Financial income/
expense, net -71 -62 15
----------------- --- --- ---
Income from continuing
operations before
income taxes 2,489 2,753 -10
------------ ----- ----- ---
Income taxes -664 -825 -20
------------ ---- ---- ---
Income from continuing
operations 1,825 1,928 -5
---------------------- ----- ----- ---
Loss from discontinued
operations, net of tax -36 -59 -39
----------------------- --- --- ---
Net income 1,789 1,869 -4
---------- ----- ----- ---
-Net income attributable
to noncontrolling
interests* 2 1 100
-Net income attributable
to shareholders of SAP
AG 1,787 1,868 -4
Earnings per share (EPS)
EPS from continuing
operations - basic in EUR 1.54 1.62 -5
EPS from continuing
operations - diluted in EUR 1.53 1.62 -6
EPS from net income
attributable to
shareholders of SAP AG -
basic in EUR 1.50 1.57 -4
EPS from net income
attributable to
shareholders of SAP AG -
diluted in EUR 1.50 1.57 -4
Weighted average number
of shares in millions,
treasury stock excluded 1,188 1,190
------------------------ ----- -----
Key ratios
Operating margin in % 24.7 24.6 0.1pp
Effective tax rate from
continuing operations in
% 26.7 30.0
*Due to the first-time application of SFAS 160, Noncontrolling Interests
in Consolidated Financial Statements, an amendment of ARB No. 51 the term
minority interest has been replaced with noncontrolling interests and the
categorization of noncontrolling interests is now shown below net income.
The prior year figures have also been changed as a result of the adoption
of this standard.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. GAAP; preliminary and unaudited)
December 31, December 31,
EUR millions 2009 2008
------------ ------------- -------------
Assets
Cash and cash equivalents 1,883 1,277
Restricted cash 1 3
Short-term investments 400 382
Accounts receivable, net 2,447 3,128
Other assets 528 705
Deferred income taxes 190 203
Prepaid expenses/deferred
charges 93 84
Current assets 5,542 5,782
Goodwill 5,034 5,009
Intangible assets, net 884 1,127
Property, plant, and
equipment, net 1,371 1,405
Investments 106 95
Accounts receivable, net 1 2
Other assets 690 566
Deferred income taxes 185 187
Prepaid expenses/deferred
charges 50 24
Noncurrent assets 8,321 8,415
Total assets 13,863 14,197
------------ ------ ------
December 31, December 31,
EUR millions 2009 2008
---------- ------------- -------------
Liabilities and total
equity
Accounts payable 512 538
Income tax obligations 323 363
Financial liabilities 148 2,574
Other liabilities 1,640 1,486
Provisions 290 214
Deferred income taxes 22 48
Deferred income 585 611
Current liabilities 3,520 5,834
Accounts payable 0 5
Income tax obligations 193 278
Financial liabilities 739 36
Other liabilities 100 94
Provisions 510 497
Deferred income taxes 142 157
Deferred income 64 61
Noncurrent liabilities 1,748 1,128
Total liabilities 5,268 6,962
Common stock, no par value 1,226 1,226
Treasury stock -1,320 -1,362
Additional paid-in capital 317 320
Retained earnings 8,902 7,709
Accumulated other
comprehensive loss -551 -660
Total equity attributable
to shareholders of SAP AG 8,574 7,233
Noncontrolling interests* 21 2
Total equity 8,595 7,235
Total liabilities and total
equity 13,863 14,197
--------------------------- ------ ------
* Reclassification of noncontrolling interests (previously minority
interests) is based on the first-time application of SFAS 160.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. GAAP; preliminary and unaudited)
Twelve months ended
EUR millions December 31
--------------------
2009 2008
---- ----
Net income 1,789 1,869
Net loss from discontinued operations 36 59
Income from continuing operations 1,825 1,928
Adjustments to reconcile income from continuing
operations
to net cash provided by operating activities:
Depreciation and amortization 496 548
Gains/losses from equity investees -1 -1
Losses on disposal of intangible assets and
property, plant, and equipment -11 4
Gains on disposal of investments -1 -15
Writedowns of financial assets 11 15
Allowances for doubtful accounts 66 76
Impacts of hedging for cash-settled share-based
payment plans 5 39
Share-based compensation including income tax
benefits 9 19
Excess tax benefit from share-based compensation 0 -7
Deferred income taxes -74 -67
Change in accounts receivable 640 -50
Change in other assets 9 -118
Change in accrued and other liabilities 15 -255
Change in deferred income 47 67
------------------------- --- ---
Net cash provided by operating activities from
continuing operations 3,036 2,183
---------------------------------------------- ----- -----
Business combinations, net of cash and cash
equivalents acquired -74 -3,773
Repayment of acquirees' debt in business
combinations 0 -450
Purchase of intangible assets and property,
plant, and equipment -225 -339
Proceeds from disposal of intangible assets and
property, plant, and equipment 45 44
Cash transferred to restricted cash 0 -451
Reduction of restricted cash 3 1,001
Purchase of investments -1,059 -380
Sales of investments 1,011 579
Purchase of other financial assets -14 -16
Sales of other financial assets 17 16
------------------------------- --- ---
Net cash used in investing activities from
continuing operations -297 -3,769
------------------------------------------ ---- ------
Dividends paid -594 -594
Purchase of treasury stock 0 -487
Proceeds from reissuance of treasury stock 24 85
Proceeds from issuance of common stock (share-
based compensation) 6 13
Excess tax benefit from share-based compensation 0 7
Proceeds from private placement transaction 697 0
Proceeds from short-term and long-term debt 0 3,859
Repayments of short-term and long-term debt -2,303 -1,571
Proceeds from the exercise of equity-based
derivative instruments (STAR hedge) 4 24
Purchase of equity-based derivative instruments
(hedge for cash-settled share-based payment
plans) 0 -55
----------------------------------------------- --- ---
Net cash provided by/used in financing
activities from continuing operations -2,166 1,281
--------------------------------------- ------ -----
Effect of foreign exchange rates on cash and cash
equivalents 52 -1
------------------------------------------------- --- ---
Net cash used in operating activities from
discontinued operations -17 -25
------------------------------------------ --- ---
Net change in cash and cash equivalents 606 -331
--------------------------------------- --- ----
Cash and cash equivalents at the beginning of the
period 1,277 1,608
------------------------------------------------- ----- -----
Cash and cash equivalents at the end of the
period 1,883 1,277
------------------------------------------- ----- -----
Reconciliations from Non-GAAP Numbers to U.S. GAAP Numbers
Preliminary and unaudited
The following table presents a reconciliation from our non-GAAP numbers
(including our non-GAAP at constant currency numbers) to the respective
most comparable U.S. GAAP numbers. Note: Our non-GAAP numbers are not
prepared under a comprehensive set of accounting rules or principles.
EUR millions, unless otherwise stated Three months ended December 31
------------------------------
2009
----
U.S. Non- Non-
GAAP Adj.* GAAP* Currency GAAP
impact** constant
currency**
Non-
GAAP
Revenue
Numbers
========
Software
revenue 1,119 0 1,119 23 1,142
Support
revenue 1,364 0 1,364 48 1,412
Subscription
and
other
software-
related
service
revenue 82 0 82 3 85
Software
and
software-
related
service
revenue 2,565 0 2,565 74 2,639
Consulting
revenue 519 0 519 18 537
Training
revenue 71 0 71 2 73
Other
service
revenue 18 0 18 1 19
Professional
services
and
other
service
revenue 608 0 608 21 629
Other
revenue 16 0 16 0 16
Total
revenue 3,189 0 3,189 95 3,284
-------- ----- --- ----- --- -----
Non-
GAAP
Operating
Expense
Numbers
==========
Cost of
software
and
software-
related
services -457 44 -413
Cost of
professional
services
and
other
services -439 0 -439
Research
and
development -490 0 -490
Sales
and
marketing -602 18 -584
General
and
administration -163 2 -161
Restructuring -10 0 -10
Other
operating
income/
expense,
net 27 0 27
Total
operating
expenses -2,134 64 -2,070 -64 -2,134
---------- ------ --- ------ --- ------
Non-
GAAP
Income
Numbers
========
Operating
income 1,055 64 1,119 32 1,151
Other
non-
operating
income/
expense,
net -17 0 -17
Financial
income/
expense,
net -19 0 -19
Income
from
continuing
operations
before
income
taxes 1,019 64 1,083
Income
taxes -271 -15 -286
Income
from
continuing
operations 748 49 797
Loss
from
discontinued
operations,
net of
tax -21 0 -21
Net
income 727 49 776
-Net
income
attributable
to
noncontrolling
interests 1 0 1
-Net
income
attributable
to
shareholders
of SAP
AG 726 49 775
------------- --- --- ---
Non-
GAAP
EPS
=====
EPS from
continuing
operations
- basic
in EUR 0.63 0.67
EPS from
continuing
operations
-
diluted
in EUR 0.63 0.67
EPS from
net
income
attributable
to
shareholders
of SAP
AG -
basic
in EUR 0.61 0.65
EPS from
net
income
attributable
to
shareholders
of SAP
AG -
diluted
in EUR 0.61 0.65
Weighted
average
number
of
shares
in
millions,
treasury
stock
excluded 1,189 1,189
---------- ----- -----
Non-
GAAP
Key
Ratios
=======
Operating
margin
in % 33.1 35.1 35.0
Effective
tax
rate
from
continuing
operations
in % 26.6 26.4
EUR millions, unless otherwise stated Three months ended December 31
------------------------------
2008
----
U.S. Non-
GAAP Adj.* GAAP*
Non-
GAAP
Revenue
Numbers
========
Software
revenue 1,322 0 1,322
Support
revenue 1,269 26 1,295
Subscription
and
other
software-
related
service
revenue 75 0 75
Software
and
software-
related
service
revenue 2,666 26 2,692
Consulting
revenue 666 0 666
Training
revenue 111 0 111
Other
service
revenue 30 0 30
Professional
services
and
other
service
revenue 807 0 807
Other
revenue 14 0 14
Total
revenue 3,487 26 3,513
-------- ----- --- -----
Non-
GAAP
Operating
Expense
Numbers
==========
Cost of
software
and
software-
related
services -480 51 -429
Cost of
professional
services
and
other
services -565 0 -565
Research
and
development -395 -1 -396
Sales
and
marketing -629 22 -607
General
and
administration -145 0 -145
Restructuring 0 0 0
Other
operating
income/
expense,
net 2 0 2
Total
operating
expenses -2,212 72 -2,140
---------- ------ --- ------
Non-
GAAP
Income
Numbers
========
Operating
income 1,275 98 1,373
Other
non-
operating
income/
expense,
net -50 0 -50
Financial
income/
expense,
net -29 0 -29
Income
from
continuing
operations
before
income
taxes 1,196 98 1,294
Income
taxes -336 -28 -364
Income
from
continuing
operations 860 70 930
Loss
from
discontinued
operations,
net of
tax -30 0 -30
Net
income 830 70 900
-Net
income
attributable
to
noncontrolling
interests 0 0 0
-Net
income
attributable
to
shareholders
of SAP
AG 830 70 900
------------- --- --- ---
Non-
GAAP
EPS
=====
EPS from
continuing
operations
- basic
in EUR 0.72 0.78
EPS from
continuing
operations
-
diluted
in EUR 0.72 0.78
EPS from
net
income
attributable
to
shareholders
of SAP
AG -
basic
in EUR 0.70 0.76
EPS from
net
income
attributable
to
shareholders
of SAP
AG -
diluted
in EUR
