WALLDORF, Germany, Jan. 29, 2021 /PRNewswire/ --
- IFRS Cloud Revenue Up 17%, Non-IFRS Cloud Revenue Up 18% At
Constant Currencies in FY 2020
- Current Cloud Backlog of €7.2 Billion, Up 14% At Constant
Currencies
- IFRS Cloud Gross Margin 66.5%, Up 3.1pp; Non-IFRS Cloud Gross
Margin Reaches 69.6%, Up 1.3pp At Constant Currencies in
FY2020
- IFRS Operating Profit Up 48%; Non-IFRS Operating Profit Up 4%
At Constant Currencies in FY 2020
- IFRS EPS Up 56%; Non-IFRS EPS Up 6% in FY 2020
- Operating Cash Flow At €7.2 Billion, Approximately Doubling
Year over Year; Free Cash Flow at €6.0 Billion in FY 2020,
Significantly Exceeding Raised Outlook
- Customer Net Promoter Score Up Sharply; Employee Engagement
Index at Record High
- 2021 Outlook Reflects Expedited Move to Cloud
- Successful IPO of Qualtrics
Cloud
Revenue
|
Total
Revenue
|
in € millions / FY
2020
|
in € millions / FY
2020
|
|
|
|
IFRS
|
Non-IFRS
|
IFRS
|
Non-IFRS
|
8,080
|
8,085
|
27,338
|
27,343
|
+17%
|
+15% (+18%
cc)
|
-1%
|
-1% (+1% cc)
|
The share of more predictable revenue reached 72% in the full
year 2020 (+5 percentage points)
Cloud & Software
Revenue
|
Operating Profit
|
in € millions / FY
2020
|
in € millions / FY
2020
|
|
|
|
IFRS
|
Non-IFRS
|
IFRS
|
Non-IFRS
|
23,228
|
23,233
|
6,621
|
8,283
|
+1%
|
+1% (+3%
cc)
|
+48%
|
+1% (+4% cc)
|
The world's leading companies are turning to SAP to become
intelligent enterprises. We are reinventing how businesses run by
accelerating our customers' transformation in the cloud. Our strong
finish to the year and the launch of RISE with SAP, our new
holistic business transformation offering, position us well to meet
our new outlook targets."
Christian Klein, CEO
In a uniquely challenging environment, 2020 was a record year
for cash flow in every single quarter and the full year. Our
better-than-anticipated top line performance combined with our
quick response on the cost side drove strong operating profit.
SAP's expedited shift to the cloud will drive long-term,
sustainable growth while significantly increasing the resiliency
and predictability of our business."
Luka Mucic, CFO
SAP SE (NYSE: SAP) today announced its financial results for the
fourth quarter and the full year ended December 31, 2020.
Business Update
SAP's business performance sequentially improved in the fourth
quarter even as the COVID-19 crisis persisted and lockdowns were
reintroduced in many regions. Cloud revenue in the fourth quarter
continued to be impacted by lower pay-as-you-go transactional
revenue, mainly Concur business travel related. However, continued
high demand for e-commerce, Business Technology Platform, and
Qualtrics solutions along with several competitive wins –
particularly for SuccessFactors Human Experience Management –
produced a strong finish to the year for SAP's cloud business. SAP
also saw strong early take up of its new holistic business
transformation offering "RISE with SAP" among pilot customers,
contributing to the cloud performance in the fourth quarter. Both
North America and Europe experienced a better-than-expected
performance in cloud order entry as well as software licenses
revenue reflecting strong demand for SAP's digital supply chain
solutions in particular. In addition, SAP had significant
competitive wins in ERP.
Recent Highlights:
- SAP launched "RISE with SAP" on January
27, 2021, a simplified pathway for customers to
transition their mission critical systems to the cloud and
transform their business, delivered as a holistic commercial
package with one subscription fee.
- Successful IPO of Qualtrics on January
28, 2021, maximizing Qualtrics' opportunity to expand their
business and build the best talent while SAP retains majority
ownership. At IPO, the company was valued at almost $18 billion, more than double the original
acquisition price. Qualtrics shares moved even higher on the first
day of trading, ending the day with a gain of just over +50%.
- Completed the acquisition of Emarsys on November 4th, 2020, a leading
omnichannel customer engagement platform provider.
- Deepened business process intelligence capabilities with the
acquisition of Signavio.
- Expanded Microsoft relationship around Teams integration,
Industry 4.0 and simplification of SAP ERP migration to the cloud
on Azure.
- Announced a new partnership with Europe's leading industrial companies, car
manufacturers and their suppliers to build the automotive network
of the future.
Throughout the COVID-19 crisis, SAP continues to serve its
customers effectively with an embedded virtual sales and remote
implementation strategy. The company retains a disciplined
approach to hiring and discretionary spend while capturing natural
savings e. g. from lower travel, facility-related costs and virtual
events. In combination with the strong topline performance these
actions drove higher operating profit and operating margin (both in
IFRS and non-IFRS at constant currencies) despite the challenging
macro environment.
SAP also continues to be a key technology partner in helping
customers and the broader community address COVID-19 challenges.
Initiatives include:
- Launched a vaccine collaboration hub (VCH) for Life Sciences
organizations to better manage vaccine supply distribution, and to
help governments and their industry partners coordinate and
successfully deploy mass vaccination programs.
- The "Corona Warn App", SAP's contact track and trace app, has
now been downloaded more than 25 million times helping to curb the
virus spread.
- Co-innovation with Parkland Health & Hospital System to
tackle urgent needs related to COVID-19: a command center dashboard
to make essential decisions; a critical inventory tracker to help
ensure real-time accurate tracking and availability of critical
inventory such as ventilators; an online, self-service,
multilingual symptom checker chatbot enabling patients to go
through an initial COVID-19 screening thereby reducing load on its
overwhelmed call center and reducing face-to-face interactions to
improve safety.
- Partnered with Mercy Technology Services, the IT division of
St. Louis-based health system
Mercy, to harness the power of data analytics to produce real-world
evidence (RWE) for more informed patient care.
Financial Performance1
Full-Year 2020
SAP exceeded all of its revised 2020 revenue targets and hit the
high end of its revised operating profit outlook range.
For the full year current cloud backlog was up 7% year over year
to €7.15 billion (up 14% at constant currencies) amid continued
COVID-19 effects on SAP's cloud business. Cloud revenue grew by 17%
year over year to €8.08 billion (IFRS), up 15% to €8.09 billion
(non-IFRS) and up 18% to €8.24 billion (non-IFRS at constant
currencies), exceeding the revised full year outlook (€8.0 to €8.2
billion non-IFRS at constant currencies). Continued lower
transactional revenues, particularly in Concur, negatively impacted
cloud growth by 4 percentage points. Cloud revenue from SAP's
SaaS/PaaS offerings, that do not belong to Intelligent Spend, and
its IaaS offering grew by 27% and 23% (non-IFRS at constant
currencies), respectively. Software licenses revenue was down 20%
year over year to €3.64 billion (IFRS and non-IFRS) and down 17%
(non-IFRS at constant currencies). Cloud and software revenue was
up 1% year over year to €23.23 billion (IFRS and non-IFRS) and up
3% to €23.72 billion (non-IFRS at constant currencies), exceeding
the revised full year outlook (€23.1 – 23.6 billion). Total revenue
was down 1% year over year to €27.34 billion (IFRS and
non-IFRS) and up 1% to €27.90 billion (non-IFRS at constant
currencies), also exceeding the revised full year outlook (€27.2 –
27.8 billion).
The share of more predictable revenue grew by 5 percentage
points year over year to 72% for the full year 2020.
Cloud gross margin increased 3.1 percentage points year over
year to 66.5% (IFRS) and increased by 1.4 percentage points year
over year to 69.6% (non-IFRS).
For the full year, IFRS operating profit and operating margin
were positively impacted by significantly lower restructuring
charges as well as lower share-based compensation expenses compared
to 2019. Operating profit increased by 48% year over year to €6.62
billion (IFRS) and was up 1% to €8.28 billion (non-IFRS) and up 4%
to €8.50 billion (non-IFRS at constant currencies), hitting the
high end of the revised full year outlook (€8.1 – 8.5 billion).
Operating margin increased 8.0 percentage points year over year to
24.2% (IFRS) and increased 0.6 percentage points year over year to
30.3% (non-IFRS) and 0.8 percentage points to 30.5% (non-IFRS at
constant currencies) for the full year.
Earnings per share increased 56% to €4.35 (IFRS) and increased
6% to €5.41 (non-IFRS) reflecting a strong contribution from
Sapphire Ventures.
Operating cash flow for the full year was € 7.19 billion,
approximately doubling year over year and significantly above the
raised outlook of approximately €6.0 billion. Free cash flow
increased 164% year over year to €6.00 billion, significantly above
the raised outlook of above €4.5 billion. Cash flow was positively
impacted by lower tax and restructuring payments and a successful
working capital management. At year end, net debt was –€6.50
billion.
Fourth Quarter 2020
In the fourth quarter, cloud revenue grew 8% year over year to
€2.04 billion (IFRS), up 7% to €2.04 billion (non-IFRS) and up 13%
(non-IFRS at constant currencies). Continued lower transactional
revenues, particularly in Concur, negatively impacted cloud growth
by 2 percentage points. Cloud revenue from SAP's SaaS/PaaS
offerings, that do not belong to Intelligent Spend, and its IaaS
offering grew by 22% and 17% (non-IFRS at constant currencies),
respectively. Software licenses revenue was down 15% year over year
to €1.70 billion (IFRS and non-IFRS) and down 11% (non-IFRS at
constant currencies). Cloud and software revenue was down 4% year
over year to €6.58 billion (IFRS and non-IFRS) and up 1% (non-IFRS
at constant currencies). Total revenue was down 6% year over year
to €7.54 billion (IFRS and non-IFRS) and down 2% (non-IFRS at
constant currencies).
Cloud gross margin increased 2.1 percentage points year over
year to 67.2% (IFRS) and increased by 0.5 percentage points year
over year to 70.0% (non-IFRS).
In the fourth quarter, IFRS operating profit and operating
margin were positively impacted by lower share-based compensation
expenses compared to the prior year period. Operating profit
increased by 26% year over year to €2.66 billion (IFRS) and was
down 3% to €2.77 billion (non-IFRS) and up 3% (non-IFRS at constant
currencies). Operating margin increased by 9.1 percentage points
year over year to 35.2% (IFRS) and increased 1.4 percentage points
year over year to 36.7% (non-IFRS) and 1.5 percentage points to
36.8% (non-IFRS at constant currencies).
EPS was up 19% year over year to €1.62 (IFRS) and down 7% year
over year to €1.69 (non-IFRS).
Non-Financial Performance 2020
SAP also showed a strong performance in non-financial metrics.
Customer Net Promoter Score (NPS) increased ten points year-on-year
to +4 in 2020, exceeding the outlook. This strong positive result
reverses a four-year downward trend and is a result of the
Company's focus on implementing customer feedback, harmonizing
customer interactions, and integration across the product
portfolio.
SAP's Employee Engagement Index increased 3 percentage points to
a record 86%, at the upper end of the outlook. SAP's retention rate
was 95.3% (2019: 93.3%). Further the proportion of women in
management increased to 27.5% (2019: 26.4%).
Greenhouse gas emissions were below the revised outlook from
October 2020. In 2020 SAP's
greenhouse gas emissions were 135 kilotons, down 165 kt
year-on-year. In addition to the Company's measures to decrease
carbon emissions, the continued travel restrictions due to the
COVID-19 pandemic contributed significantly to the decrease.
Segment Performance Fourth Quarter 2020
SAP's four reportable segments "Applications, Technology &
Support", "Concur", "Qualtrics" and "Services" showed the following
performance:
Applications, Technology & Support (AT&S)
In the fourth quarter, segment revenue in AT&S was down 4%
to €6.21 billion year over year (up 1% at constant currencies).
Solutions which contributed to this growth are listed below.
SAP S/4HANA
SAP S/4HANA is an intelligent, integrated ERP system that runs
on SAP's real time in-memory platform, SAP HANA. It addresses
industry-specific requirements with proven best practices for 25
verticals and enables new business models as marketplaces evolve.
It revolutionizes business processes with intelligent automation,
supported by artificial intelligence and robotic process
automation. It helps users make better decisions faster with
embedded analytics, a conversational interface, and digital
assistants.
Approximately 900 SAP S/4HANA customers were added in the
quarter, taking total adoption to approximately 16,000 customers,
up 16% year over year, of which more than 8,700 are live. In the
fourth quarter, approximately 40% of the additional SAP S/4HANA
customers were net new.
In the fourth quarter, world-class organizations such as
L'Oréal, Shell, Schwarz IT KG (Lidl), Co-op, Unilever, s.Oliver
Group, Gilead Sciences, and Saudi Aramco chose SAP S/4HANA.
Boehringer Ingelheim went live with SAP S/4HANA in 41 Countries
simultaneously. BT Group, A. P. Møller-Mærsk, Beijing Energy, the
Coca-Cola Bottling Company of Egypt, and Bertelsmann also went live. A
fast-growing number of companies of all sizes such as CureVac,
Zespri, Oxford University Press, The
Not Company, Nippon Cargo Airlines, BMW, Atos, and I-PEX chose SAP
S/4HANA Cloud.
Human Experience Management (HXM)
The SAP SuccessFactors Human Experience Management (HXM) Suite
provides solutions for core HR and payroll, talent management,
employee experience management and people analytics. Built as a
highly scalable platform it meets complex cross border
requirements, delivering tax regulation and HR policy updates in
101 specific countries, 42 languages and payroll in 46
countries.
HXM is designed around what employees need, how they work, and
what motivates them. It empowers employees and enables HR leaders
to accelerate business growth.
SAP SuccessFactors HXM solutions leverage Qualtrics solutions
allowing customers to capture insights from employees and link them
with operational data to see what is happening, understand why and
take action. More than 900 customers have selected these
solutions.
BIC, City of Houston, Vodafone Idea Limited,
Mitsubishi Chemical Corporation, Fujitsu Ltd., and NORD/LB were
some of many competitive wins. Klosterfrau Healthcare Group and FC
Bayern München went live in Q4.
SAP was ranked as a leader in the IDC MarketScape for Worldwide
Talent Acquisition Suites for Large Enterprise, and the Gartner
Magic Quadrant for Cloud HCM Suites for 1,000+ Employee
Enterprises.
SAP Customer Experience
SAP Customer Experience (CX) combines leading solutions for
commerce, service, marketing, sales, and customer data, enabling
companies to manage and deliver personalized customer experiences
across touchpoints and channels based on a complete view of the
customer. As part of the Intelligent Enterprise, SAP CX suite
integrates with SAP S/4HANA from demand signals to fulfillment in
one end-to-end process.
SAP CX solutions also use the benefits of Qualtrics Customer
Experience Management to understand the wants and needs of
customers. This enables organizations to combine customer feedback
and operational data to listen, understand and take action in the
moment to improve the customer experience.
In the fourth quarter, SAP's e-commerce solution showed a strong
performance, more than doubling cloud revenue year over year.
Carrefour, Mindray, Miele & Cie. KG, Sundiro Honda
Motorcycle Co., Ltd., Piaggio & C. S.p.A., and VINCI Energies
chose SAP Customer Experience solutions, with Beiersdorf, Deutsche
Börse and Mondi AG going live.
SAP was recently named a leader in the IDC MarketScape:
Worldwide Retail Commerce Platform Software Providers 2020 Vendor
Assessment report.
SAP Business Technology Platform
SAP Business Technology Platform powers customers to become
intelligent enterprises and is a central element of SAP's new "RISE
with SAP" offering. Its leading technologies like SAP HANA, SAP
Analytics Cloud, SAP Integration Suite and SAP Extension Suite
enable customers to build, integrate and extend applications, while
turning their data into business value. Its easy access to the
ecosystem ensures development agility and speed. SAP Business
Technology Platform supports cloud, on-premise and hybrid customer
landscapes, offering seamless interoperability with other platform
technologies to deliver a high level of scalability, flexibility
and efficiency.
Deutsches Rotes Kreuz (German Red Cross), Nomad Foods Europe
Ltd., and Enel selected SAP Business Technology Platform and SAP
Analytics Cloud solutions.
In the fourth quarter, SAP further strengthened the Business
Technology Platform as the engine for our customers business
transformation with new tools and functionalities for low-code and
no-code process automation.
SAP was recently named as a leader in both the Gartner "Magic
Quadrant for Metadata Management Solutions" and its "Magic Quadrant
for Cloud Database Management Systems".
Ariba & Fieldglass
SAP Ariba provides collaborative commerce capabilities from
sourcing and orders through invoice and payment along with
expertise to help customers optimize their spend. The solutions
drive simple, intelligent exchanges between millions of buyers and
suppliers across both direct and indirect expense categories.
SAP launched Qualtrics XM for Suppliers, a new solution that
combines data from an organization's SAP Ariba, SAP Fieldglass and
SAP S/4HANA solutions with real-time supplier insights and
AI-driven intelligence from Qualtrics, to empower organizations to
identify key areas of improvement across the source-to-pay process
to help secure critical supply, increase cost savings, mitigate
risk and improve business agility.
SAP Ariba and SAP Fieldglass, together with SAP Concur,
represent SAP's intelligent spend platform, the largest commerce
platform in the world with over $4.1
trillion in global commerce annually transacted in more than
180 countries.
Esselunga S.p.A., Nestlé, General Motors, Ecopetrol, Los Angeles
Unified School District, and Sony Picture Networks India chose SAP
Ariba solutions in the fourth quarter.
SAP was recently named a leader for its SAP Ariba and SAP
Fieldglass integrated solutions in the Gartner 2020 Magic Quadrant
for Procure-to-Pay Suites report.
SAP Fieldglass is the leader in external workforce management
and services procurement. The solutions help organizations find,
engage, and manage all types of flexible resources including
contingent workers, consultants and freelancers. SAP Fieldglass
added more than 1 million new external workers during the fourth
quarter. Chevron chose SAP Fieldglass solutions in the fourth
quarter.
SAP Fieldglass solutions were recently positioned as a Market
Leader in the Ardent Partners 2020 Vendor Management System
Technology Advisor report.
Concur
In the fourth quarter, Concur segment revenue was down 20% to
€341 million year over year (down 15% at constant currencies) due
to lower pay-as-you-go transactional revenue as a result of
significantly reduced business travel related to the COVID-19
crisis.
SAP Concur provides integrated travel, expense, and invoice
management solutions that simplify and automate these everyday
processes. The SAP Concur mobile app guides employees through
business trips, charges are effortlessly populated into expense
reports, and invoice approvals are automated. By integrating near
real-time data and using AI to analyze 100% of transactions, the
SAP Concur spend management solution provides better visibility to
help efficiently control employee-driven spend.
Canadian Pacific Railway Company, Nikkei, Inc., and Software AG
were among the organizations who chose SAP Concur solutions in the
fourth quarter.
Qualtrics
In the fourth quarter, Qualtrics segment revenue was up 17% to
€183 million year over year (up 26% at constant currencies).
With Qualtrics, SAP combines market leadership in Experience
Management (XM) with end-to-end operational power in 25 industries
to help organizations design and improve the four core experiences
of business: customer, employee, product and brand.
The Qualtrics XM Platform™ is trusted by over 13,000 customers
as mission-critical software that enables breakthrough design and
continuous improvement that allows all four experiences to be
managed on a single, connected platform.
In the fourth quarter, Deutsche Bank, Burton Snowboards, Bank of
Montreal, Uber Singapore, University of Auckland, Rosetta
Stone, HSBC, GE Healthcare, Hongkong and Shanghai Hotels,
and many others selected Qualtrics to move beyond systems of record
to new systems of action and achieve breakthrough results.
Services
In the fourth quarter, Services segment revenue was down 16% to
€758 million year over year (down 11% at constant currencies). The
services implementation business continues to demonstrate its
resilience and flexibility with SAP's shift to remote delivery, and
SAP's premium services remain in high demand. However, SAP's
training business continues to be impacted due to delays in
re-opening of global training centers.
Segment Results at a Glance
Segment Performance Fourth Quarter 2020
|
Applications,
Technology & Support
|
Concur
|
Qualtrics
|
Services
|
€ million, unless
otherwise stated
(Non-IFRS)
|
Actual
Currency
|
∆ in %
|
∆ in %
const.
curr.
|
Actual
Currency
|
∆ in %
|
∆ in %
const.
curr.
|
Actual
Currency
|
∆ in %
|
∆ in %
const.
curr.
|
Actual
Currency
|
∆ in %
|
∆ in %
const.
curr.
|
Cloud
revenue
|
1,592
|
11
|
17
|
295
|
–19
|
–14
|
139
|
26
|
36
|
0
|
NA
|
NA
|
Segment
revenue
|
6,207
|
–4
|
1
|
341
|
–20
|
–15
|
183
|
17
|
26
|
758
|
–16
|
–11
|
Segment profit
(loss)
|
3,038
|
–3
|
2
|
121
|
–30
|
–26
|
10
|
<-100
|
<-100
|
124
|
5
|
8
|
Cloud gross margin
(in %)
|
66.3
|
3.2pp
|
2.9pp
|
87.2
|
–1.4pp
|
–1.6pp
|
89.4
|
–0.7pp
|
–0.6pp
|
NM1)
|
NM1)
|
NM1)
|
Segment margin (in
%)
|
48.9
|
0.6pp
|
0.6pp
|
35.7
|
–5.3pp
|
–5.3pp
|
5.4
|
11.9pp
|
10.9pp
|
16.3
|
3.1pp
|
2.9pp
|
Regional Revenue Performance Full Year 2020
SAP had a solid year in all regions.
In the EMEA region cloud and software revenue increased 1%
(IFRS) and 3% (non-IFRS at constant currencies). Cloud revenue
increased 23% (IFRS) and 25% (non-IFRS at constant currencies) with
Germany, Switzerland and France being highlights. Saudi Arabia and Sweden had a strong year in software licenses
revenue.
In the Americas region, cloud and software revenue increased 1%
(IFRS) and was up 3% (non-IFRS at constant currencies). Cloud
revenue increased 13% (IFRS and non-IFRS at constant currencies)
with Canada a highlight while
the United States and Mexico had a robust performance. The United States, Brazil and Mexico held up well in software licenses
revenue.
In the APJ region, cloud and software revenue was flat (IFRS)
and up 2% (non-IFRS at constant currencies). Cloud revenue
increased 18% (IFRS) and 21% (non-IFRS at constant currencies) with
Japan, South Korea and Singapore being highlights. Japan, Australia and India had a robust performance in software
licenses revenue.
Financial Results at a Glance
Fourth Quarter 2020
|
IFRS
|
Non-IFRS1)
|
€ million, unless
otherwise stated
|
Q4 2020
|
Q4 2019
|
∆ in %
|
Q4 2020
|
Q4 2019
|
∆ in %
|
∆ in % const.
curr.
|
Current cloud
backlog2)
|
NA
|
NA
|
NA
|
7,155
|
6,681
|
7
|
14
|
Cloud
revenue
|
2,041
|
1,896
|
8
|
2,044
|
1,907
|
7
|
13
|
Software licenses and
support revenue
|
4,538
|
4,950
|
–8
|
4,538
|
4,950
|
–8
|
–4
|
Cloud and software
revenue
|
6,579
|
6,846
|
–4
|
6,582
|
6,857
|
–4
|
1
|
Total
revenue
|
7,538
|
8,041
|
–6
|
7,541
|
8,052
|
–6
|
–2
|
Share of more
predictable revenue (in %)
|
65
|
60
|
4pp
|
65
|
60
|
4pp
|
|
Operating profit
(loss)
|
2,655
|
2,102
|
26
|
2,768
|
2,839
|
–3
|
3
|
Profit (loss) after
tax
|
1,932
|
1,637
|
18
|
2,022
|
2,190
|
–8
|
|
Basic earnings per
share (in €)
|
1.62
|
1.36
|
19
|
1.69
|
1.82
|
–7
|
|
Number of employees
(FTE, December 31)
|
102,430
|
100,330
|
2
|
NA
|
NA
|
NA
|
NA
|
|
|
1)
|
For a breakdown of
the individual adjustments see table "Non-IFRS Adjustments by
Functional Areas" in this Quarterly Statement.
|
2)
|
As this is an order
entry metric, there is no IFRS equivalent.
|
Due to rounding, numbers may not add up precisely.
Full Year 2020
|
IFRS
|
Non-IFRS1)
|
€ million, unless
otherwise stated
|
Q1–Q4
2020
|
Q1–Q4
2019
|
∆ in %
|
Q1–Q4
2020
|
Q1–Q4
2019
|
∆ in %
|
∆ in % const.
curr.
|
Current cloud
backlog2)
|
NA
|
NA
|
NA
|
7,155
|
6,681
|
7
|
14
|
Cloud
revenue
|
8,080
|
6,933
|
17
|
8,085
|
7,013
|
15
|
18
|
Software licenses and
support revenue
|
15,148
|
16,080
|
–6
|
15,148
|
16,080
|
–6
|
–4
|
Cloud and software
revenue
|
23,228
|
23,012
|
1
|
23,233
|
23,093
|
1
|
3
|
Total
revenue
|
27,338
|
27,553
|
–1
|
27,343
|
27,634
|
–1
|
1
|
Share of more
predictable revenue (in %)
|
72
|
67
|
5pp
|
72
|
67
|
4pp
|
|
Operating profit
(loss)
|
6,621
|
4,473
|
48
|
8,283
|
8,208
|
1
|
4
|
Profit (loss) after
tax
|
5,280
|
3,370
|
57
|
6,529
|
6,152
|
6
|
|
Basic earnings per
share (in €)
|
4.35
|
2.78
|
56
|
5.41
|
5.11
|
6
|
|
Number of employees
(FTE, December 31)
|
102,430
|
100,330
|
2
|
NA
|
NA
|
NA
|
NA
|
|
|
1)
|
For a breakdown of
the individual adjustments see table "Non-IFRS Adjustments by
Functional Areas" in this Quarterly Statement.
|
2)
|
As this is an order
entry metric, there is no IFRS equivalent.
|
Due to rounding, numbers may not add up precisely.
Business Outlook 2021
SAP provides the following full-year 2021 outlook reflecting its
solid business momentum and current estimates concerning the timing
and pace of recovery from the COVID-19 crisis. This outlook assumes
the COVID-19 crisis will begin to recede as vaccine programs roll
out globally, leading to a gradually improving demand environment
in the second half of 2021.
- SAP expects €9.1 – 9.5 billion non-IFRS cloud revenue at
constant currencies (2020: €8.09 billion), up 13% to 18% at
constant currencies
- SAP expects €23.3 – 23.8 billion non-IFRS cloud and software
revenue at constant currencies (2020: €23.23 billion), flat to up
2% at constant currencies
- SAP expects €7.8 – 8.2 billion non-IFRS operating profit at
constant currencies (2020: €8.28 billion), down 1% to 6% at
constant currencies
- The share of more predictable revenue (defined as the total of
cloud revenue and software support revenue) is expected to reach
approximately 75% (2020: 72%).
Following a record cash flow performance in 2020, the company
expects operating cash flow of approximately €6.0 billion (2020
€7.2 billion) primarily reflecting moderately lower profit, higher
expected income tax payments, and adverse currency exchange
movements. Free cash flow is expected above €4.5 billion (2020 €6.0
billion), also impacted by a modest increase in capex.
While SAP's full-year 2021 business outlook is at constant
currencies, actual currency reported figures are expected to be
impacted by currency exchange rate fluctuations as the Company
progresses through the year. See the table below for the Q1 and FY
2021 expected currency impacts.
Expected Currency
Impact Based on December 2020 Level for the Rest of the
Year
|
In percentage
points
|
Q1
|
FY
|
Cloud
revenue
|
-6pp to
-8pp
|
-3pp to
-5pp
|
Cloud and software
revenue
|
-5pp to
-7pp
|
-2pp to
-4pp
|
Operating
profit
|
-7pp to
-9pp
|
-2pp to
-4pp
|
SAP also confirms its mid-term ambition which was previously
published in its Q3 2020 Quarterly Statement.
In addition to the financial goals, SAP also focuses on three
non-financial targets for 2021: customer loyalty, employee
engagement, and carbon emissions. SAP aims to achieve a Customer
Net Promoter Score score of 5 to 10 in 2021. The Company targets an
Employee Engagement Index in a range of 84% to 86%. Further, the
Company targets greenhouse gas emissions of 145 kt in 2021.
The full Q4 2020 Quarterly Statement can be downloaded from
http://www.sap.com/investors/sap-2020-q4-statement.
Additional Information
This Quarterly Statement and all information therein is
unaudited.
The 2019 comparative numbers for full year only include
Qualtrics revenues and profits from acquisition date of
January 23rd.
The SAP Integrated Report 2020 and Annual Report on Form 20-F
will be published on March
4th, 2021, and will be available for download at
www.sapintegratedreport.com.
Definition of key growth metrics
Current cloud backlog (CCB) is the contractually committed cloud
revenue we expect to recognize over the upcoming 12 months as of a
specific key date. Thus, it is a subcomponent of our overall
remaining performance obligations following IFRS 15.120. For CCB,
we take into consideration committed deals only. CCB can be
regarded as a lower boundary for cloud revenue to be recognized
over the next 12 months, as it excludes utilization-based models
without pre-commitments and committed deals, both new and renewal,
closed after the key date. For our committed cloud business, we
believe the expansion of CCB over a period is a valuable indicator
of go-to market success, as it reflects both new contracts closed
as well as existing contracts renewed.
Share of more predictable revenue is the total of non-IFRS cloud
revenue and non-IFRS software support revenue as a percentage of
total revenue.
Global commerce is the total commerce volume transacted on the
SAP Ariba, SAP Concur and SAP Fieldglass Networks in the trailing
12 months. SAP Ariba commerce includes procurement and sourcing
spend.
For explanations on other key growth metrics please refer the
performance management section of SAP's Integrated Report 2019 and
Half-Year Report, which can be found at www.sap.com/investor.
Webcast
SAP senior management will host a virtual press conference
today, January 29th at
10:00 AM (CET) /9:00 AM (GMT) / 4:00
AM (Eastern) / 1:00 AM
(Pacific), followed by a financial analyst conference call at
2:00 PM (CET) / 1:00 PM (GMT) / 8:00
AM (Eastern) / 5:00 AM
(Pacific). Both conferences will be webcast live on the Company's
website at 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 www.sap.com/investor.
Financial Analyst and Investor Conference
Following the "RISE with SAP" launch held on January 27th, SAP is planning to host an event
for financial analysts and investors in the coming months, in
conjunction with the company's annual SAPPHIRE NOW conference.
About SAP
SAP's strategy is to help every business run as an intelligent
enterprise. As a market leader in enterprise application software,
we help companies of all sizes and in all industries run at their
best: 77% of the world's transaction revenue touches an SAP®
system. Our machine learning, Internet of Things (IoT), and
advanced analytics technologies help turn customers' businesses
into intelligent enterprises. SAP helps give people and
organizations deep business insight and fosters collaboration that
helps them stay ahead of their competition. We simplify technology
for companies so they can consume our software the way they want –
without disruption. Our end-to-end suite of applications and
services enables business and public customers across 25 industries
globally to operate profitably, adapt continuously, and make a
difference. With a global network of customers, partners,
employees, and thought leaders, SAP helps the world run better and
improve people's lives. For more information, visit
www.sap.com.
Follow SAP Investor Relations on Twitter at @sapinvestor.
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)
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 as
supplemented by SAP's Half Year Report furnished with the SEC on
Form 6-K. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of their
dates.
© 2021 SAP SE. All rights reserved.
No part of this publication may be reproduced or transmitted in
any form or for any purpose without the express permission of SAP
SE. The information contained herein may be changed without prior
notice.
Some software products marketed by SAP SE and its distributors
contain proprietary software components of other software vendors.
National product specifications may vary.
These materials are provided by SAP SE 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.
SAP and other SAP products and services mentioned herein as well
as their respective logos are trademarks or registered trademarks
of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product
and service names mentioned are the trademarks of their respective
companies. Please see www.sap.com/about/legal/copyright.html for
additional trademark information and notice.
1 The full year and Q4 2020 results were also
impacted by other effects. For details, please refer to the
disclosures on page 34 of this document.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/topline-exceeds-full-year-outlook-operating-profit-and-free-cash-flow-up-strongly-301217894.html
SOURCE SAP SE