DGAP-Adhoc: SAP SE: SAP Outpaces Market with Record 2015

SAP SE / Key word(s): Final Results/Preliminary Results 12.01.2016 00:11 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- SAP Announces Preliminary Fourth Quarter and Full Year 2015 Results - Full Year Non-IFRS Cloud and Software Revenue Up 20% (12% at Constant Currencies, Beating Company Guidance) - SAP S/4HANA Adoption Surges - More Than Doubling the Number of Customers in the Fourth Quarter, Now Exceeding 2,700 Customers - Tremendous Momentum in New Cloud Bookings - Up 103% in the Full Year, Up 75% in the Fourth Quarter - Full Year Non-IFRS Cloud Subscription and Support Revenue Up 109% to EUR2.30 Billion (EUR2.00 Billion at Constant Currencies, Achieving Company Guidance) - Full Year Non-IFRS Operating Profit Up 13% to EUR6.35 Billion (EUR5.902 Billion at Constant Currencies, Beating Company Guidance) WALLDORF, Germany - January 11, 2016 - After an initial review of its fourth quarter 2015 performance, SAP SE (NYSE: SAP) today announced its preliminary financial results for the fourth quarter and full year ended December 31, 2015. All 2015 figures in this release are approximate due to the preliminary nature of the announcement. SAP had exceptional momentum with fast growth in cloud and double-digit growth in its core license business in the fourth quarter. For the full year, non-IFRS cloud and software revenue grew by 20% or 12% at constant currencies and exceeded the outlook of 8% - 10% growth at constant currencies. New cloud bookings, the key measure for SAP's sales success in the cloud, increased 103% in the full year to EUR0.89 billion and 75% in the fourth quarter to EUR0.35 billion (*). Non-IFRS cloud subscriptions and support revenue was EUR2.30 billion (EUR2.00 billion (**) at constant currencies, achieving the outlook of EUR1.95 to EUR2.05 billion at constant currencies) for the full year. Non-IFRS operating profit was EUR6.35 billion (EUR5.902 billion at constant currencies, beating the full year outlook of EUR5.6 - EUR5.9 billion at constant currencies). Customer adoption of SAP S/4HANA continues to accelerate sharply, with more than 2,700 customers across all regions at the end of 2015, more than doubling quarter over quarter. SAP S/4HANA, built on SAP HANA, the most advanced in-memory platform available today, provides the digital core that companies need to reduce complexity, digitize their business and connect every part of their enterprise. BUSINESS OUTLOOK The Company is providing the following 2016 outlook: - Based on the continued strong momentum in SAP's cloud business the Company expects full year 2016 non-IFRS cloud subscriptions and support revenue to be in a range of EUR2.95 - EUR3.05 billion at constant currencies (2015: EUR2.30 billion). The upper end of this range represents a growth rate of 33% at constant currencies. - The Company expects full year 2016 non-IFRS cloud & software revenue to increase by 6% - 8% at constant currencies (2015: EUR17.23 billion). - The Company expects full-year 2016 non-IFRS operating profit to be in a range of EUR6.4 billion - EUR6.7 billion at constant currencies (2015: EUR6.35 billion). SAP will report detailed preliminary fourth quarter and full year 2015 results on January 22nd. FINANCIAL HIGHLIGHTS FOURTH QUARTER 2015 (1) All 2015 figures in this release are approximate due to the preliminary nature of the announcement. <pre> IFRS Non- IFRS(2) EUR billion, unless Q4 Q4 % Q4 2015 Q4 % % change otherwise stated 2015 2014 chan 2014 chan const. curr. ge ge Cloud subscriptions and support 0.63 0.35 81% 0.63 0.36 76% 60% Software licenses 2.15 1.87 15% 2.15 1.87 15% 11% Software support 2.60 2.34 11% 2.60 2.34 11% 6% Software licenses and support 4.75 4.21 13% 4.75 4.21 13% 9% Cloud and software 5.38 4.56 18% 5.38 4.57 18% 13% Total revenue 6.35 5.46 16% 6.35 5.47 16% 11% Operating profit 1.70 1.75 -3% 2.28 2.13 7% 3% - - Operating margin (in %) 26.8 32.1 5.3pp 35.9 38.9 3.0pp -2.6pp </pre> (1) All figures are preliminary and unaudited. (2) For a detailed description of SAP's non-IFRS measures see Explanation of Non-IFRS Measures online. IFRS cloud subscriptions and support revenue was EUR0.63 billion (2014: EUR0.35 billion), an increase of 81%. Non-IFRS cloud subscriptions and support revenue was EUR0.63 billion (2014: EUR0.36 billion), an increase of 76% (60% at constant currencies). IFRS software licenses revenue was EUR2.15 billion (2014: EUR1.87 billion), an increase of 15%. Non-IFRS software licenses revenue was EUR2.15 billion (2014: EUR1.87 billion), an increase of 15% (11% at constant currencies). IFRS software licenses and support revenue was EUR4.75 billion (2014: EUR4.21 billion), an increase of 13%. Non-IFRS software licenses and support revenue was EUR4.75 billion (2014: EUR4.21 billion), an increase of 13% (9% at constant currencies). IFRS cloud and software revenue was EUR5.38 billion (2014: EUR4.56 billion), an increase of 18%. Non-IFRS cloud and software revenue was EUR5.38 billion (2014: EUR4.57 billion), an increase of 18% (13% at constant currencies). IFRS total revenue was EUR6.35 billion (2014: EUR5.46 billion), an increase of 16%. Non-IFRS total revenue was EUR6.35 billion (2014: EUR5.47 billion), an increase of 16% (11% at constant currencies). IFRS operating profit was EUR1.70 billion (2014: EUR1.75 billion), a decrease of 3%. Non-IFRS operating profit was EUR2.28 billion (2014: EUR2.13 billion), an increase of 7% (3% at constant currencies). IFRS operating margin was 26.8% (2014: 32.1%), a decrease of 5.3 percentage points. Non-IFRS operating margin was 35.9% (2014: 38.9%), a decrease of 3.0 percentage points (2.6 percentage points at constant currencies). FULL YEAR 2015 (1) <pre> IFRS Non- IFRS(2) EUR billion, unless FY FY % FY FY % % change otherwise stated 2015 2014 chan 2015 2014 chan const. curr. ge ge Cloud subscriptions and support 2.29 1.09 110% 2.30 1.10 109% 82% Software licenses 4.84 4.40 10% 4.84 4.40 10% 4% Software support 10.09 8.83 14% 10.09 8.83 14% 7% Software licenses and support 14.93 13.23 13% 14.93 13.23 13% 6% Cloud and software 17.22 14.32 20% 17.23 14.33 20% 12% Total revenue 20.80 17.56 18% 20.81 17.58 18% 10% Operating profit 4.25 4.33 -2% 6.35 5.64 13% 5% - - Operating margin (in %) 20.4 24.7 4.2pp 30.5 32.1 1.6pp -1.5pp </pre> (1) All figures are preliminary and unaudited. (2) For a detailed description of SAP's non-IFRS measures see Explanation of Non-IFRS Measures online. IFRS cloud subscriptions and support revenue was EUR2.29 billion (2014: EUR1.09 billion), an increase of 110%. Non-IFRS cloud subscriptions and support revenue was EUR2.30 billion (2014: EUR1.10 billion), an increase of 109% (82% at constant currencies). IFRS software licenses revenue was EUR4.84 billion (2014: EUR4.40 billion), an increase of 10%. Non-IFRS software licenses revenue was EUR4.84 billion (2014: EUR4.40 billion), an increase of 10% (4% at constant currencies). IFRS software licenses and support revenue was EUR14.93 billion (2014: EUR13.23 billion), an increase of 13%. Non-IFRS software licenses and support revenue was EUR14.93 billion (2014: EUR13.23 billion), an increase of 13% (6% at constant currencies). IFRS cloud and software revenue was EUR17.22 billion (2014: EUR14.32 billion), an increase of 20%. Non-IFRS cloud and software revenue was EUR17.23 billion (2014: EUR14.33 billion), an increase of 20% (12% at constant currencies). IFRS total revenue was EUR20.80 billion (2014: EUR17.56 billion), an increase of 18%. Non-IFRS total revenue was EUR20.81 billion (2014: EUR17.58 billion), an increase of 18% (10% at constant currencies). IFRS operating profit was EUR4.25 billion (2014: EUR4.33 billion), a decrease of 2%. Non-IFRS operating profit was EUR6.35 billion (2014: EUR5.64 billion), an increase of 13% (5% at constant currencies). IFRS operating margin was 20.4% (2014: 24.7%), a decrease of 4.2 percentage points. Non-IFRS operating margin was 30.5% (2014: 32.1%), a decrease of 1.6 percentage points (1.5 percentage points at constant currencies). (*) New cloud bookings consist of all order entry of a given period that is expected to be classified as cloud subscription and support revenue and results from purchases by new customers and from incremental purchases by existing customers. The order amount must be contractually committed (i.e. variable amounts from pay-per-use and similar arrangements are not included). Consequently, due to their uncommitted pay-per-use nature Ariba and Fieldglass transaction-based fees are not reflected in the new cloud bookings metric. Amounts included in the measure are annualized. Concur contributed approximately EUR0.04 billion to SAP's new cloud bookings in the fourth quarter 2015. (**) For the fourth quarter 2015, Concur contributed approximately EUR0.16 billion to SAP's Non-IFRS cloud subscriptions and support revenue at constant currencies. The Concur acquisition was closed on December 4th, 2014. --------------------------------------------------------------------------- Information and Explaination of the Issuer to this News: 'We decisively beat our full year guidance for cloud and software revenue,' said Bill McDermott, CEO of SAP. 'SAP gained significant share against core and best of breed competitors. Across markets and industries SAP is extending its lead as the trusted innovator in the business software industry. Our completeness of vision in the cloud and soaring adoption of S/4HANA gives us tremendous confidence in our business in 2016 and beyond.' Luka Mucic, CFO of SAP, said: 'SAP is unique in combining a growing core and a rapidly expanding cloud business. In particular, S/4HANA is boosting broad customer adoption of our entire innovation portfolio. With our strong top line and the success of our business transformation we generated the highest non-IFRS operating profit in SAP's history.' Additional Information 2015 revenue and profit figures include the full revenue and profit from Concur and Fieldglass. The comparative numbers for 2014 include Concur and Fieldglass starting December 4 and May 2, respectively. For a more detailed description of all of SAP's non-IFRS measures and their limitations as well as our constant currency and free cash flow figures see Explanation of Non-IFRS Measures online. 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 304,500 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com. Follow SAP Investor Relations on Twitter at @sapinvestor. 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 Andy Kendzie +1 (202) 312-3919 andy.kendzie@sap.com, ET For customers interested in learning more about SAP products: Global Customer Center: +49 180 534-34-24 United States Only: 1 (800) 872-1SAP (1-800-872-1727) Note to editors: To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels. To view video stories on diverse topics, visit www.sap-tv.com. From this site, you can embed videos into your own Web pages, share video via e-mail links and subscribe to RSS feeds from SAP TV. # # # 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. 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Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: SAP SE Dietmar-Hopp-Allee 16 69190 Walldorf Germany Phone: +49 (0)6227 - 74 74 74 Fax: E-mail: investor@sap.com Internet: www.sap.com ISIN: DE0007164600 WKN: 716460 Indices: DAX Listed: Regulated Market in Berlin, Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Dusseldorf, Hamburg, Hanover, Munich; Terminbörse EUREX; NYSE End of Announcement DGAP News-Service ---------------------------------------------------------------------------