SAP Financial Year, Best Ever!

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[Techtaffy Newsdesk]

SAP announced its preliminary financial results for the fourth quarter and full-year ended December 31, 2011. “In an uncertain environment, we had the best year in our 40 year history and clearly outperformed the competition. We extended our leadership in enterprise applications, analytics and mobile and are reinventing the database and cloud markets,” said Bill McDermott and Jim Hagemann Snabe, co-CEOs of SAP.

 

Highlights:

Revenue – Fourth Quarter 2011

IFRS software revenue was €1.74 billion (2010: €1.51 billion), an increase of 16 per cent.

IFRS software and software-related service revenue was €3.72 billion (2010: €3.27 billion), an increase of 14 per cent. Non-IFRS software and software-related service revenue was €3.72 billion (2010: €3.31 billion), an increase of 12 per cent.

IFRS total revenue was €4.50 billion (2010: €4.06 billion), an increase of 11 per cent. Non-IFRS total revenue was €4.50 billion (2010: €4.10 billion), an increase of 10 per cent.

Fourth Quarter 2011 non-IFRS software and software-related service revenue and total revenue exclude a deferred support revenue write-down from acquisitions of €1 million (2010: €38 million).

 

Profit – Fourth Quarter 2011

IFRS operating profit was €1.67 billion (2010: €544 million), an increase of 206 per cent. Non-IFRS operating profit was €1.78 billion (2010: €1.62 billion), an increase of 10 per cent.

IFRS operating margin was 37.0 per cent (2010: 13.4%), an increase of 23.6 percentage points. Non-IFRS operating margin was 39.6 per cent (2010: 39.6%).

IFRS profit after tax was €1.20 billion (2010: €434 million), an increase of 176 per cent. Non-IFRS profit after tax was €1.28 billion (2010: €1.11 billion), an increase of 16 per cent. IFRS basic earnings per share was €1.01 (2010: €0.37), an increase of 173 per cent. Non-IFRS basic earnings per share was €1.08 (2010: €0.93), an increase of 16 per cent.

 

Fourth quarter 2011 operating profit and operating margin were impacted by SAP’s continued investments in go-to-market activities intended to capture future growth opportunities, resulting in a sequential increase in headcount in sales and marketing by almost 500 full-time-equivalents (FTEs). Total headcount for the Group grew in the fourth quarter by almost 1,200 FTEs compared to the previous quarter.

 

Fourth quarter 2010 IFRS operating profit and operating margin were negatively impacted by the provision for the TomorrowNow litigation while there was no such effect on SAP’s non-IFRS operating profit and operating margin.

 

Revenue – Full-Year 2011

IFRS software revenue was €3.97 billion (2010: €3.27 billion), an increase of 22 per cent.

IFRS software and software-related service revenue was €11.32 billion (2010: €9.79 billion), an increase of 16 per cent. Non-IFRS software and software-related service revenue was €11.35 billion (2010: €9.87 billion), an increase of 15 per cent.

IFRS total revenue was €14.23 billion (2010: €12.46 billion), an increase of 14 per cent. Non-IFRS total revenue was €14.26 billion (2010: €12.54 billion), an increase of 14 per cent.

Full-Year 2011 Non-IFRS software and software-related service revenue as well as total revenue exclude a deferred support revenue write-down from acquisitions of €27 million (2010: €74 million).

 

Profit – Full-Year 2011

IFRS operating profit was €4.88 billion (2010: €2.59 billion), an increase of 88 per cent. Non-IFRS operating profit was €4.71 billion (2010: €4.01 billion), an increase of 18 per cent.

IFRS operating margin was 34.3 per cent (2010: 20.8 per cent), an increase of 13.5 percentage points. Non-IFRS operating margin was 33.0 per cent (2010: 32.0 per cent).

IFRS profit after tax was €3.44 billion (2010: €1.81 billion), an increase of 90 per cent. Non-IFRS profit after tax was €3.37 billion (2010: €2.74 billion), an increase of 23 per cent. IFRS basic earnings per share was €2.89 (2010: €1.52), an increase of 90 per cent.

Full year 2011 IFRS operating profit and operating margin numbers were favorably impacted by the re-measurement of the TomorrowNow litigation provision while full year 2010 IFRS operating profit and operating margin were negatively impacted by the TomorrowNow litigation provision. The provision in 2010 as well as the re-measurement in 2011 did not affect SAP’s non-IFRS operating profit and operating margin results.

Full-Year 2011 non-IFRS operating profit excludes a deferred support revenue write-down from acquisitions of €27 million, acquisition-related charges of €448 million, profit from discontinued activities of €717 million, share-based compensation expenses of €69 million and restructuring expenses of €4 million (2010: €74 million, €304 million, expenses of €983 million, €58 million and -€3 million). Full-Year 2011 non-IFRS profit after tax and non-IFRS basic earnings per share exclude a deferred support revenue write-down from acquisitions of €18 million, acquisition-related charges of €303 million, profit from discontinued activities of €444 million, share-based compensation expenses of €51 million and restructuring expenses of €2 million (2010: €50 million, €221 million, expenses of €613 million, €42 million and -€1 million) net of tax.

 

Business Outlook

SAP expects full-year 2012 non-IFRS software and software-related service revenue to increase in a range of 10 per cent– 12 per cent at constant currencies (2011: €11.35 billion). This includes a contribution of up to 2 percentage points from SuccessFactors’ business.

SAP expects full-year 2012 non-IFRS operating profit to be in a range of €5.05 billion – €5.25 billion at constant currencies (2011: €4.71 billion). Full-year 2012 non-IFRS operating profit excluding SuccessFactors is expected to be in a similar range.

 

Major Customer Wins

In the fourth quarter of 2011, SAP closed major contracts in key regions:

 

EMEA

Deutsch Lufthansa AG, Bundesrechenzentrum GmbH, Lidl, Clariant International Ltd., FIAT, Vodafone

 

Americas

U.S. Department of Agriculture, ConAgra Foods, Ace Hardware, Delta Air Lines, Banco de Galicia y Buenos Aires S.A., Petróleos Mexicanos

 

Asia Pacific/Japan

Yonghui Superstores, Tingyi Holding, Department of Finance and Deregulation, Usha International, Powercor, Sharp

 

HANA

Gonhermex, S.A. de C.V., Grupo Gonher, Schukat electronic Vertriebs, EBY-Brown Company, Newell Rubbermaid, Coinstar, T-Mobile USA.

 

SAP Business ByDesign

EC Bioenergie, DESANO Pharmacy, Innogence,  Matchcode, metaio, Schaltbau Holding, Schukat electronic Vertriebs