SAP AG: SAP Announces Best Ever Second Quarter Performance - Significantly Outperforming Market Expectations By Exceeding EUR1 Billion in Software Revenue

July 12, 2012 | SAP - Ad-hoc Announcements
SAP AG  / Key word(s): Quarter Results/Preliminary Results

12.07.2012 13:33

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SAP Announces Best Ever Second Quarter Performance - Significantly
Outperforming Market Expectations By Exceeding EUR1 Billion in Software
Revenue

  - Second Quarter 2012 Software Revenue Increased 26% to EUR1,059 Million
    (19% at Constant Currencies) Driven by Double-Digit Growth in all
    Regions

  - Second Quarter 2012 Software Revenue Reaches Upper End of the Second
    Quarter Outlook

  - Second Quarter 2012 Non-IFRS Software and Software-Related Service
    Revenue Increased 21% to EUR3.14 Billion (15% at Constant Currencies)

  - 10th Consecutive Quarter of Double-Digit Growth in Non-IFRS Software
    and Software-Related Service Revenue Supported by Stellar Results in
    SAP HANA, Mobile and Cloud

  - Second Quarter 2012 Non-IFRS Operating Profit Increased by 15% to
    EUR1.17 Billion (8% at Constant Currencies)

WALLDORF, Germany - July 12, 2012 - After a preliminary review of its
second quarter 2012 performance, SAP AG (NYSE: SAP) today announced its
preliminary financial results for the second quarter ended June 30, 2012.

FINANCIAL HIGHLIGHTS - Second Quarter 2012

All 2012 figures in this release are approximate due to the preliminary
nature of the announcement.

IFRS software revenue was EUR1.06 billion (2011: EUR0.84 billion), an
increase of 26% (19% at constant currencies). IFRS software and
software-related service revenue was EUR3.12 billion (2011: EUR2.58
billion), an increase of 21%. Non-IFRS software and software-related
service revenue was EUR3.14 billion (2011: EUR2.59 billion), an increase of
21% (15% at constant currencies). IFRS total revenue was EUR3.90 billion
(2011: EUR3.30 billion), an increase of 18%. Non-IFRS total revenue was
EUR3.92 billion (2011: EUR3.31 billion), an increase of 18% (12% at
constant currencies).

IFRS operating profit was EUR0.92 billion (2011: EUR0.86 billion), an
increase of 7%. Non-IFRS operating profit was EUR1.17 billion (2011:
EUR1.02 billion), an increase of 15% (8% at constant currencies).
IFRS operating margin was 23.6% (2011: 26.0%), a decrease of 2.4 percentage
points. Non-IFRS operating margin was 30.0% (2011: 30.8%), or 29.6% at
constant currencies, a decrease of 0.8 percentage points (a decrease of 1.2
percentage points at constant currencies).

Non-IFRS operating profit and non-IFRS operating margin for the second
quarter 2012 were impacted by severance expenses which amounted to EUR31
million (2011: EUR13 million) and the acquisition of SuccessFactors, which
impacted the non-IFRS operating margin by approximately 110 basis points.
In addition, the company increased its headcount by 3,655 FTEs (thereof
1,789 organic) in the first quarter of 2012 and another 1,552 FTEs (thereof
1,376 organic) in the second quarter of 2012 to capture future growth
opportunities.

Second Quarter 2012 non-IFRS software and software-related service revenue
and non-IFRS operating profit excludes a deferred revenue write-down from
acquisitions of EUR18 million (2011: EUR8 million). Non-IFRS operating
profit additionally excludes acquisition-related charges of EUR129 million,
expenses from discontinued activities of EUR2 million, share-based
compensation expenses of EUR99 million and restructuring expenses of EUR4
million (2011: EUR111 million, expenses of EUR10 million, EUR32 million and
EUR1 million).

FINANCIAL HIGHLIGHTS - First Half 2012

IFRS software revenue was EUR 1.70 billion (2011: EUR1.45 billion), an
increase of 17% (11% at constant currencies). IFRS software and
software-related service revenue was EUR5.74 billion (2011: EUR4.91
billion), an increase of 17%. Non-IFRS software and software-related
service revenue was EUR5.77 billion (2011: EUR4.93 billion), an increase of
17% (12% at constant currencies). IFRS total revenue was EUR7.25 billion
(2011: EUR6.32 billion), an increase of 15%. Non-IFRS total revenue was
EUR7.27 billion (2011: EUR6.35 billion), an increase of 15% (10% at
constant currencies).

IFRS operating profit was EUR1.55 billion (2011: EUR1.45 billion), an
increase of 7%. Non-IFRS operating profit was EUR2.01 billion (2011:
EUR1.80 billion), an increase of 12% (6% at constant currencies).
IFRS operating margin was 21.4% (2011: 23.0%), a decrease of 1.6 percentage
points. Non-IFRS operating margin was 27.6% (2011: 28.3%), or 27.2% at
constant currencies, a decrease of 0.7 percentage points (a decrease of 1.1
percentage points at constant currencies).

First half 2012 non-IFRS software and software-related service revenue and
non-IFRS operating profit excludes a deferred revenue write-down from
acquisitions of EUR25 million (2011: EUR25 million). Non-IFRS operating
profit additionally excludes acquisition-related charges of EUR250 million,
profit from discontinued activities of EUR5 million, share-based
compensation expenses of EUR181 million and restructuring expenses of EUR4
million (2011: EUR222 million, expenses of EUR12 million, EUR84 million and
EUR1 million).

The company will report its full second quarter and first half 2012 results
on July 24th.

Additional Information

2012 revenue and profit figures include the revenue, profits and cash flows
from SuccessFactors starting on February 21, 2012. For the prior-year
period those numbers were not included.

For a more detailed description of all of SAP's non-IFRS adjustments 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 190,000 customers (includes customers from
the acquisition of SuccessFactors) 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, StreamWork, SAP HANA,  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.
SuccessFactors, Execution is the Difference, BizX Mobile Touchbase, It's
time to love work again, Jam and BadAss SaaS are trademarks or registered
trademarks of SuccessFactors Inc. in the United States and other countries.
SuccessFactors 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.


For more information, financial community only:

Stefan Gruber +49 (6227) 7-44872  investor@sap.com, CET


12.07.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
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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:       investor@sap.com
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
 
End of Announcement                             DGAP News-Service
 
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