SAP AG: SAP Announces Record Full Year and Fourth Quarter 2012 - Full Year 2012 Non-IFRS Software and Software-Related Service Revenue Increases 17% to EUR13.2 Billion

January 15, 2013 | SAP - Ad-hoc Announcements
SAP AG  / Key word(s): Final Results/Preliminary Results

15.01.2013 13:29

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  - Revenue Guidance Exceeded: At Constant Currencies, Full Year 2012
    Non-IFRS Software and Software-Related Service Revenue Increased 13%

  - Triple-Digit Growth for SAP HANA: EUR390 Million in Full Year 2012 SAP
    HANA Software Revenue, Exceeding Company Expectations

  - Accelerating Cloud Momentum: 12 Months New and Upsell Subscription
    Billings for SAP Cloud Applications Business Increased Nineteenfold in
    Fourth Quarter 2012, Annual Cloud Revenue Run Rate Approaching EUR850
    Million 1)

  - Strong Contribution from Mobile: EUR222 Million in Full Year 2012
    Mobile Software Revenue, Achieving Company Expectations

  - Full Year 2012 Non-IFRS Operating Profit Increased 11% to EUR5.21
    Billion (6% to EUR5.02 Billion at Constant Currencies Compared to
    Guidance Range of EUR5.05 - EUR5.25 Billion)

WALLDORF, Germany - January 15, 2013 - After a preliminary review of its
fourth quarter 2012 performance, SAP AG (NYSE: SAP) today announced its
preliminary financial results for the fourth quarter and full year ended
December 31, 2012.

SAP delivered record revenues in 2012. Non-IFRS total revenue grew 14%
year-on-year and exceeded EUR16 billion. Non-IFRS software and
software-related service revenue grew 17% year-on-year to EUR13.2 billion.

SAP delivered strong overall growth in the fourth quarter. The company
achieved strong software revenue performance in the APJ region. The EMEA
region delivered impressive results in light of the continued uncertain
market environment and the Americas region had a solid software revenue
performance considering a tough year-over-year comparison. SAP delivered
exceptional growth in its key innovation areas SAP HANA, Mobile and Cloud:
SAP HANA had an outstanding quarter reaching nearly EUR200 million in
software revenue in the fourth quarter and achieving almost EUR400 million
for the full year. SAP's mobile business contributed more than EUR220
million to software revenue achieving its full year revenue target. SAP's
strong cloud momentum continued in the fourth quarter: 12 month new and
upsell subscription billings for SAP cloud applications increased
nineteenfold. Derived from the total revenue of SAP's two cloud segments
the annual cloud revenue run rate is approaching EUR850 million. Non-IFRS
cloud subscription and support revenue in the fourth quarter increased more
than twentyfivefold to EUR159 million.

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

FINANCIAL HIGHLIGHTS - Fourth Quarter 2012
IFRS software revenue was EUR1.94 billion (2011: EUR1.78 billion), an
increase of 9% (8% at constant currencies). IFRS software and
software-related service revenue was EUR4.23 billion (2011: EUR3.72
billion), an increase of 14%. Non-IFRS software and software-related
service revenue was EUR4.27 billion (2011: EUR3.72 billion), an increase of
15% (13% at constant currencies). IFRS total revenue was EUR5.02 billion
(2011: EUR4.50 billion), an increase of 12%. Non-IFRS total revenue was
EUR5.06 billion (2011: EUR4.50 billion), an increase of 12% (11% at
constant currencies).

IFRS operating profit was EUR1.59 billion (2011: EUR1.67 billion), a
decrease of 5%. Non-IFRS operating profit was EUR1.96 billion (2011:
EUR1.78 billion), an increase of 10% (9% at constant currencies). IFRS
operating margin was 31.6% (2011: 37.1%), a decrease of 5.5 percentage
points. Non-IFRS operating margin was 38.8% (2011: 39.6%), a decrease of
0.8 percentage points. Non-IFRS operating margin was 38.9% at constant
currencies, a decrease of 0.7 percentage points.

IFRS operating profit and IFRS operating margin for the fourth quarter 2012
were impacted by share-based compensation expense of EUR185 million (2011:
EUR1 million) and acquisition-related charges of EUR151 million (2011:
EUR116 million). Share-based compensation expenses significantly increased
mainly due to the implementation of new share-based compensation plans and
the strong performance of SAP's share price in 2012.

Total headcount for the group grew in the fourth quarter by almost 3,100
FTEs (thereof 300 from organic growth) compared to the previous quarter.

Fourth Quarter 2012 non-IFRS software and software-related service revenue
and non-IFRS operating profit excludes a deferred revenue write-down from
acquisitions of EUR38 million (2011: EUR1 million). Fourth Quarter 2012
non-IFRS operating profit additionally excludes acquisition-related charges
of EUR151 million, a profit from discontinued activities of EUR2 million,
EUR185 share-based compensation expenses of and restructuring expenses of
EUR0 million (2011: EUR116 million, profit of EUR6 million, EUR1 million
and EUR2 million).

FINANCIAL HIGHLIGHTS - Full Year 2012
IFRS software revenue was EUR4.66 billion (2011: EUR4.11 billion), an
increase of 13% (10% at constant currencies). IFRS software and
software-related service revenue was EUR13.16 billion (2011: EUR11.32
billion), an increase of 16%. Non-IFRS software and software-related
service revenue was EUR13.25 billion (2011: EUR11.35 billion), an increase
of 17% (13% at constant currencies). This exceeded SAP's non-IFRS software
and software-related service revenue guidance which was the high end of the
10.5 - 12.5% range at constant currencies. IFRS total revenue was EUR16.22
billion (2011: EUR14.23 billion), an increase of 14%. Non-IFRS total
revenue was EUR16.30 billion (2011: EUR14.26 billion), an increase of 14%
(10% at constant currencies).

IFRS operating profit was EUR4.06 billion (2011: EUR4.88 billion), a
decrease of 17%. Non-IFRS operating profit was EUR5.21 billion (2011:
EUR4.71 billion), an increase of 11% (EUR5.02 billion at constant
currencies, an increase of 6%). This was slightly below SAP's non-IFRS
operating profit guidance (which was in a range of EUR5.05 - EUR5.25
billion at constant currencies) due to the company's continued investments
in key innovations as well as the expansion of SAP's global go-to-market
activities. IFRS operating margin was 25.0% (2011: 34.3%), a decrease of
9.3 percentage points. Non-IFRS operating margin was 31.9% (2011: 33.0%), a
decrease of 1.1 percentage points. Non-IFRS operating margin was 31.8% at
constant currencies, a decrease of 1.2 percentage points at constant
currencies.

IFRS operating profit and IFRS operating margin for the full year 2012 were
impacted by share-based compensation expense of EUR519 million (2011: EUR68
million) and acquisition-related charges of EUR537 million (2011: EUR448
million). Share-based compensation expenses significantly increased mainly
due to the implementation of new share-based compensation plans and the
strong performance of SAP's share price in 2012. Additionally, for the full
year 2011, the reduction of the provision for the TomorrowNow litigation
resulted in a significant profit from the discontinued TomorrowNow
activities. This had a 5.1 percentage point positive influence on SAP's
full year 2011 IFRS operating margin. For this reason the 2012 and 2011
IFRS profit and margin numbers are not fully comparable.

Operating profit and operating margin for the full year 2012 were impacted
by SAP's continued investments in its global go-to-market activities and
its cloud business. Total headcount for the group grew year-over-year by
almost 8,700 FTEs (thereof more than 4,800 FTEs from acquisitions).

Full year 2012 non-IFRS software and software-related service revenue and
non-IFRS operating profit excludes a deferred revenue write-down from
acquisitions of EUR81 million (2011: EUR27 million). Full year Non-IFRS
operating profit additionally excludes acquisition-related charges of
EUR537 million, expenses from discontinued activities of EUR0 million,
share-based compensation expenses of EUR519 million and restructuring
expenses of EUR8 million (2011: EUR448 million, profit of EUR717 million,
EUR68 million and EUR4 million).

The company will report its fourth quarter and full year 2012 results on
January 23rd, including the outlook for 2013.


1) The growth rate in new and upsell subscription billings relates to SAP
cloud applications business (excluding Ariba); the annual revenue run rate
includes Ariba (before any future growth) and is derived from the total
revenue of SAP's two cloud segments.


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Information and Explaination of the Issuer to this News:

Additional Information

'2012 was an outstanding year where we set many new records. We continued
our double-digit growth momentum and exceeded our revenue guidance. We
achieved a breakthrough in the cloud and today SAP is the second largest
cloud player in the world. And we overachieved on our SAP HANA revenue
ambition, making SAP the fastest growing next generation database company
in the market,' said SAP Co-CEOs Bill McDermott and Jim Hagemann Snabe.
'With our inspired people and our customer-centric innovation strategy we
are perfectly positioned to continue our growth momentum in 2013. With SAP
Business Suite on HANA we are redefining the software industry and opening
up a new world of growth opportunities for our customers.'

'This fourth quarter is the 12th consecutive quarter of double-digit SSRS
revenue growth. Thereby our total revenue for the first time exceeded EUR5
billion in a quarter. We invested significantly in key innovations while
expanding our global go-to-market activities to further strengthen our
mid-term growth ambition,' said Werner Brandt, CFO of SAP.


Regional Performance - Fourth Quarter 2012 2) 
IFRS software revenue for the EMEA region was EUR937 million (2011: EUR865
million), an increase of 8% (8% at constant currencies). IFRS and non-IFRS
software and software-related service revenue for the EMEA region was
EUR2.02 billion (2011: EUR1.84 billion), an increase of 10% (9% at constant
currencies). IFRS and non-IFRS software and software-related service
revenue for Germany was EUR575 million (2011: EUR578 million), a decrease
of 1% (1% at constant currencies).

IFRS software revenue for the Americas region was EUR643 million (2011:
EUR625 million), an increase of 3% (3% at constant currencies). IFRS
software and software-related service revenue for the Americas region was
EUR1.49 billion (2011: EUR1.27 billion), an increase of 17%. Non-IFRS
software and software-related service revenue for the Americas region was
EUR1.53 billion (2011: EUR1.27 billion), an increase of 20% (18% at
constant currencies). IFRS software and software-related service revenue
for the United States was EUR1.08 billion (2011: EUR895 million), an
increase of 21%. Non-IFRS software and software-related service revenue for
the United States was EUR1.12 billion (2011: EUR895 million), an increase
of 25% (22% at constant currencies).

IFRS software revenue for the APJ region was EUR357 million (2011: EUR290
million), an increase of 23% (22% at constant currencies). IFRS and
non-IFRS software and software-related service revenue for the APJ region
was EUR720 million (2011: EUR609 million), an increase of 18% (16% at
constant currencies). IFRS and non-IFRS software and software-related
service revenue for Japan was EUR209 million (2011: EUR182 million), an
increase of 15% (18% at constant currencies).

Regional Performance - Full Year 2012 
IFRS software revenue for the EMEA region was EUR2.01 billion (2011:
EUR1.85 billion), an increase of 8% (7% at constant currencies). IFRS
software and software-related service revenue for the EMEA region was
EUR6.11 billion (2011: EUR5.53 billion), an increase of 10%. Non-IFRS
software and software-related service revenue for the EMEA region was
EUR6.11 billion (2011: EUR5.54 billion), an increase of 10% (9% at constant
currencies). IFRS and non-IFRS software and software-related service
revenue for Germany was EUR1.82 billion (2011: EUR1.73 billion), an
increase of 5% (5% at constant currencies).

IFRS software revenue for the Americas region was EUR1.77 billion (2011:
EUR1.53 billion), an increase of 16% (11% at constant currencies). IFRS
software and software-related service revenue for the Americas region was
EUR4.82 billion (2011: EUR3.96 billion), an increase of 22%. Non-IFRS
software and software-related service revenue for the Americas region was
EUR4.90 billion (2011: EUR3.98 billion), an increase of 23% (17% at
constant currencies). IFRS software and software-related service revenue
for the United States was EUR3.54 billion (2011: EUR2.87 billion), an
increase of 23%. Non-IFRS software and software-related service revenue for
the United States was EUR3.62 million (2011: EUR2.89 billion), an increase
of 25% (17% at constant currencies).

IFRS software revenue for the APJ region was EUR879 million (2011: EUR722
million), an increase of 22% (17% at constant currencies). IFRS and
non-IFRS software and software-related service revenue for the APJ region
was EUR2.24 billion (2011: EUR1.83 billion), an increase of 22% (15% at
constant currencies). IFRS and non-IFRS software and software-related
service revenue for Japan was EUR699 million (IFRS 2011: EUR579 million;
non-IFRS 2011: EUR580 million), an increase of 21% (13% at constant
currencies).

2) In this release, software revenue by region is based on location of
negotiation whereas software and software-related service revenue is based
on customer location.


2012 revenue and profit figures include the revenue, profits and cash flows
from SuccessFactors starting on February 21, 2012 and Ariba starting on
October 1, 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
http://www.sap.com/corporate-en/investors/newsandreports/reporting-framewo
rk.epx, 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 230,000 customers to operate profitably,
adapt continuously, and grow sustainably. For more information, visit
www.sap.com.

# # #

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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
 
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