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o | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
OR | ||
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the fiscal year ended December 31, 2010 | ||
OR | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
OR | ||
o | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
Date of event requiring this shell company report | ||
For the transition period from to |
Title of each class | Name of each exchange on which registered | |
American Depositary Shares, each Representing one Ordinary Share, without nominal value | New York Stock Exchange | |
Ordinary Shares, without nominal value | New York Stock Exchange* |
Ordinary Shares, without nominal value: (as of December 31, 2010)** | 1,226,822,697 |
Yes þ | No o |
Yes o | No þ |
Yes þ | No o |
Yes o | No o |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller Reporting company o |
Item 17o | Item 18o |
Yeso | Noþ |
* | Listed not for trading or quotation purposes, but only in connection with the registration of American Depositary Shares representing such ordinary shares pursuant to the requirements of the Securities and Exchange Commission. |
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• | Third parties may claim we infringe their intellectual property rights; that could result in damages being awarded against us and limit our ability to utilize certain technologies in the future. | |
• | Claims and lawsuits against us may have adverse outcomes. | |
• | The uncertainty in the global economy and in political conditions has negatively impacted our business, financial position, profit, and cash flows, and may continue to do so in the future. | |
• | If our established customers do not buy additional software products, renew maintenance agreements, or purchase additional professional services, our business, financial position, profit, or cash flows could be negatively impacted. | |
• | Undetected security flaws in our software may be exploited by other persons, damaging SAP or our customers. | |
• | We might not acquire and integrate companies effectively or successfully and our strategic alliances might not be successful. |
• | We may not be able to prevent unauthorized disclosure of our future strategies, technologies, and products, or of information that is subject to data protection or privacy law, and such disclosure may harm our business. | |
• | Our IT security measures may be breached or compromised, and we may sustain unplanned IT system unavailability. | |
• | We may be subject to attacks that degrade or deny our users’ access to our products and services or result in theft or misuse of intellectual property and confidential data. | |
• | We may not be able to obtain adequate title to or licenses in, or to enforce, intellectual property. | |
• | We use technologies under license from third parties. The loss of the right to use technologies could delay implementation of our products or force us to pay higher license fees. | |
• | Our revenue mix may vary and may negatively impact our profit margins. | |
• | An economic downturn may impact our liquidity and increase the default risk associated with and the valuation of our financial assets and trade receivables. | |
• | Our international business activities subject us to different regulatory requirements in different countries and to economic and other risks that could harm our business, financial position, profit, or cash flows. | |
• | If we do not effectively manage our geographically dispersed workforce, our business may not operate efficiently, and this could have a negative impact on our profit. | |
• | If we are unable to attract and retain management and employees with specialized knowledge and technology skills, we may not be able to manage |
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our operations effectively or develop successful new products and services. | ||
• | Implementation of SAP software often involves a significant commitment of resources by our customers and is subject to a number of significant risks over which we often have no control. | |
• | Corporate governance laws and regulatory requirements in Germany, the United States, and elsewhere have become much more onerous. | |
• | Management’s use of estimates may affect our profit and financial position. | |
• | Current and future accounting pronouncements and other financial reporting standards, especially but not only concerning revenue recognition, may adversely affect the financial results we present. | |
• | We may not be able to protect our critical information or assets or safeguard our business operations against disruption. |
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• | Non-IFRS SSRS revenue: Our software and software-related service revenue (SSRS) includes software and support revenue plus subscription and other software-related service revenue. The principal source of software revenue is the fees customers pay for software licenses. Software revenue is our key revenue driver because it tends to affect our other revenue streams. Generally, customers that buy software licenses also enter into maintenance contracts, and these generate recurring software-related service revenue in the form of support revenue after the software sale. Maintenance contracts cover support services and software updates and enhancements. We also generate software-related service revenue when we provide software on subscription or with obligatory hosting terms. Software revenue also tends to stimulate service revenue from consulting and training sales. | |
• | Non-IFRS operating margin: In 2010, we used non-IFRS operating margin and constant currency non-IFRS operating margin to measure our overall operational process efficiency and overall business performance. Non-IFRS operating margin is the ratio of our non-IFRS operating profit to total non-IFRS revenue, expressed as a percentage. See below for a discussion of the IFRS and non-IFRS measures we use. | |
• | Cash conversion rate: Our cash conversion rate is defined as the ratio of our non-IFRS net cash flows from operating activities to non-IFRS profit after tax. Our cash conversion rate measures |
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the proportion of our non-IFRS profit after tax that is converted to cash flow. |
• | Finance income, net: This measure provides insight especially into the return on liquid assets and capital investments and the cost of borrowed funds. To manage our financial income, net, we focus on cash flow, the composition of our liquid asset and capital investment portfolio, and the average rate of interest at which assets are invested. We also monitor average outstanding borrowings and the associated finance costs. | |
• | DSO and DPO: We manage working capital by controlling the days’ sales outstanding for receivables, or DSO (defined as average number of days from the raised invoice to cash receipt from the customer), and the days’ payables outstanding for liabilities, or DPO (defined as average number of days from the received invoice to cash payment to the vendor). | |
• | Effective tax rate: We define our effective tax rate as the ratio of income tax expense to profit before tax, expressed as a percentage. |
• | A reconciliation of IFRS measures to the respective and most comparable non-IFRS measures. |
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• | An explanation of the non-IFRS measures we disclose in this report, the reasons why management believes these measures are useful to investors and the limitations of these measures. |
• | An explanation of changes we made with effect from January 1, 2011, to the definitions we use for non-IFRS profit and margin measures. |
€ millions, unless otherwise stated | for the years ended December 31, | |||||||||||||||||||||||||||||||
2010 | 2009 | |||||||||||||||||||||||||||||||
Non-IFRS | ||||||||||||||||||||||||||||||||
Currency | Constant | |||||||||||||||||||||||||||||||
IFRS | Adjustment | Non-IFRS | Impact | Currency | IFRS | Adjustment | Non-IFRS | |||||||||||||||||||||||||
Revenue numbers | ||||||||||||||||||||||||||||||||
Software revenue | 3,265 | 0 | 3,265 | −244 | 3,021 | 2,607 | 0 | 2,607 | ||||||||||||||||||||||||
Support revenue | 6,133 | 74 | 6,207 | −313 | 5,894 | 5,285 | 11 | 5,296 | ||||||||||||||||||||||||
Subscription and other software-related service revenue | 396 | 0 | 396 | −13 | 383 | 306 | 0 | 306 | ||||||||||||||||||||||||
Software and software-related service revenue | 9,794 | 74 | 9,868 | −570 | 9,298 | 8,198 | 11 | 8,209 | ||||||||||||||||||||||||
- thereof SAP excluding Sybase | 9,539 | 0 | 9,539 | −545 | 8,994 | 8,198 | 11 | 8,209 | ||||||||||||||||||||||||
Consulting revenue | 2,197 | 0 | 2,197 | −118 | 2,079 | 2,074 | 0 | 2,074 | ||||||||||||||||||||||||
Other service revenue | 473 | 0 | 473 | −22 | 451 | 400 | 0 | 400 | ||||||||||||||||||||||||
Professional services and other service revenue | 2,670 | 0 | 2,670 | −140 | 2,530 | 2,474 | 0 | 2,474 | ||||||||||||||||||||||||
Total revenue | 12,464 | 74 | 12,538 | −709 | 11,829 | 10,672 | 11 | 10,683 | ||||||||||||||||||||||||
Total operating expense numbers | ||||||||||||||||||||||||||||||||
Cost of software and software-related services | −1,823 | 198 | −1,625 | −1,658 | 184 | −1,474 | ||||||||||||||||||||||||||
Cost of professional services and other services | −2,071 | 9 | −2,062 | −1,851 | 4 | −1,847 | ||||||||||||||||||||||||||
Research and development | −1,729 | 5 | −1,725 | −1,591 | 4 | −1,587 | ||||||||||||||||||||||||||
Sales and marketing | −2,645 | 80 | −2,565 | −2,199 | 73 | −2,126 | ||||||||||||||||||||||||||
General and administration | −636 | 16 | −620 | −564 | 3 | −561 | ||||||||||||||||||||||||||
Restructuring | 3 | −5 | −2 | −198 | 4 | −194 | ||||||||||||||||||||||||||
TomorrowNow litigation | −981 | 981 | 0 | −56 | 56 | 0 | ||||||||||||||||||||||||||
Other operating income, net | 9 | 0 | 9 | 33 | 0 | 33 | ||||||||||||||||||||||||||
Total operating expenses | −9,873 | 1,283 | −8,591 | 370 | −8,221 | −8,084 | 327 | −7,756 | ||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||
Operating profit and margin | ||||||||||||||||||||||||||||||||
Operating profit | 2,591 | 1,357 | 3,947 | −339 | 3,608 | 2,588 | 339 | 2,927 | ||||||||||||||||||||||||
Operating margin in % | 20.8 | 31.5 | 30.5 | 24.3 | 27.4 |
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• | Our management primarily uses these non-IFRS measures rather than IFRS measures as the basis for making financial, strategic and operating decisions. | |
• | The variable remuneration components of our Executive Board members and employees are based on non-IFRS revenue and non-IFRS operating profit rather than the respective IFRS measures. | |
• | The annual budgeting process for all management units is based on non-IFRS revenue and non-IFRS operating profit numbers rather than the respective IFRS numbers, whereas in 2010 costs such as share-based compensation and restructuring were considered only on a company level. | |
• | All forecast and performance reviews with all senior managers globally are based on these non-IFRS measures, rather than the respective IFRS numbers. | |
• | Company-internal target setting and outlook provided to the capital markets are both based on non-IFRS revenues and non-IFRS profit measures rather than the respective IFRS numbers. |
• | Acquisition-related charges |
• | Amortization expense/impairment charges of intangibles acquired in business combinations and certain stand-alone acquisitions of intellectual property (including purchased in-process research and development) | |
• | Restructuring expenses and settlements of preexisting business relationships in connection with a business combination | |
• | Acquisition-related third-party expenses |
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• | Discontinued activities: Results of discontinued operations that qualify as such under IFRS in all respects except that they do not represent a major line of business. Under U.S. GAAP, which we reported under until 2009, we presented the results of operations of the TomorrowNow entities as discontinued operations. Under IFRS, results of discontinued operations may only be presented as discontinued operations if a separate major line of business or geographical area of operations is discontinued. Our TomorrowNow operations were separate, but were not a major line of business and thus did not qualify for separate presentation under IFRS. |
• | Expenses from our share-based compensation plans | |
• | Restructuring expenses |
• | The non-IFRS measures provide investors with insight into management’s decision-making, since management uses these non-IFRS measures to run our business and make financial, strategic and operating decisions. | |
• | The non-IFRS measures provide investors with additional information that enables a comparison ofyear-over-year operating performance by eliminating certain direct effects of acquisitions and discontinued activities. | |
• | Non-IFRS and non-GAAP measures are widely used in the software industry. In most cases, our non-IFRS measures are more suitable for comparison with our competitors’ corresponding non-IFRS and non-GAAP measures than are our IFRS measures. |
• | Despite the migration from U.S. GAAP to IFRS, we will continue to internally treat the ceased TomorrowNow activities as discontinued operations and thus will continue to exclude potential future TomorrowNow results, which are expected to mainly comprise expenses in connection with the Oracle lawsuit, from our internal management reporting, planning, forecasting, and compensation plans. Therefore, adjusting our non-IFRS measures for the results of the discontinued TomorrowNow activities provides insight into the financial measures that SAP uses internally. |
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• | By adjusting the non-IFRS numbers for the results from our discontinued TomorrowNow activities, the non-IFRS numbers are more comparable to the non-GAAP measures that SAP used through the end of 2009. That enhances the comparability of SAP’s performance measures before and after the full IFRS migration. |
• | The eliminated amounts may be material to us. | |
• | Without being analyzed in conjunction with the corresponding IFRS measures the non-IFRS measures are not indicative of our present and future performance, foremost for the following reasons: |
• | While our non-IFRS profit numbers reflect the elimination of |
certain acquisition-related expenses, no eliminations are made for the additional revenue and other revenue that result from the acquisitions. | ||
• | The acquisition-related charges that we eliminate in deriving our non-IFRS profit numbers are likely to recur should SAP enter into material business combinations in the future. | |
• | The acquisition-related amortization expense that we eliminate in deriving our non-IFRS profit numbers is a recurring expense that will impact our financial performance in future years. | |
• | The revenue adjustment for the fair value accounting of the acquired entities’ support contracts and the expense adjustment for acquisition-related charges do not arise from a common conceptual basis. This is because the revenue adjustment aims to improve the comparability of the initial post-acquisition period with future post-acquisition periods while the expense adjustment aims to improve the comparability between post-acquisition periods and pre-acquisition periods. This should particularly be considered when evaluating our non-IFRS operating profit and non-IFRS operating margin numbers as these combine our non-IFRS revenue and non-IFRS expenses despite the absence of a common conceptual basis. | |
• | Our discontinued activities, share-based compensation expense and restructuring charges could result in significant cash outflows. | |
• | The valuation of our cash-settled, share-based payment plans could |
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vary significantly due to the fluctuation of our share price and due to the other parameters used in the valuation of these plans. | ||
• | We have in the past issued share-based compensation awards to our employees every year, and intend to continue doing so in the future. Thus our share-based compensation expenses are recurring although the amounts usually change from period to period. |
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2010 | 2009 | Change | ||||||||||
€ millions | ||||||||||||
Net cash flows from operating activities | 2,932 | 3,015 | −3 | % | ||||||||
Purchases of intangible assets and property, plant, and equipment | −334 | −225 | 48 | % | ||||||||
Free cash flow | 2,598 | 2,790 | −7 | % | ||||||||
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2010(1) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
US$ | € | € | € | € | € | |||||||||||||||||||
millions, unless otherwise stated | ||||||||||||||||||||||||
Income Statement Data: Years Ended December 31, | ||||||||||||||||||||||||
Software and software-related service revenue | 12,996 | 9,794 | 8,198 | 8,457 | 7,427 | 6,605 | ||||||||||||||||||
Total revenue | 16,538 | 12,464 | 10,672 | 11,575 | 10,256 | 9,402 | ||||||||||||||||||
Operating profit | 3,438 | 2,591 | 2,588 | 2,701 | 2,698 | 2,503 | ||||||||||||||||||
Operating margin in %(2) | 20.8 | 20.8 | 24.3 | 23.3 | 26.3 | 26.6 | ||||||||||||||||||
Profit after tax | 2,406 | 1,813 | 1,750 | 1,848 | 1,908 | 1,836 | ||||||||||||||||||
Profit attributable to owners of parent | 2,403 | 1,811 | 1,748 | 1,847 | 1,906 | 1,835 | ||||||||||||||||||
Earnings per share(2) | ||||||||||||||||||||||||
Basic in € | 2.02 | 1.52 | 1.47 | 1.55 | 1.58 | 1.50 | ||||||||||||||||||
Diluted in € | 2.02 | 1.52 | 1.47 | 1.55 | 1.58 | 1.49 | ||||||||||||||||||
Other Data: | ||||||||||||||||||||||||
Weighted-average number of shares outstanding | ||||||||||||||||||||||||
Basic | 1,188 | 1,188 | 1,188 | 1,190 | 1,207 | 1,226 | ||||||||||||||||||
Diluted | 1,189 | 1,189 | 1,189 | 1,191 | 1,210 | 1,231 | ||||||||||||||||||
Statement of Financial Position Data: At December 31, | ||||||||||||||||||||||||
Cash and cash equivalents | 4,668 | 3,518 | 1,884 | 1,280 | 1,608 | 2,399 | ||||||||||||||||||
Total assets(3) | 27,654 | 20,841 | 13,374 | 13,900 | 10,161 | 9,332 | ||||||||||||||||||
Current financial liabilities(4) | 188 | 142 | 146 | 2,563 | 82 | 63 | ||||||||||||||||||
Non-current financial liabilities(4) | 5,903 | 4,449 | 729 | 40 | 6 | 3 | ||||||||||||||||||
Issued capital(5) | 1,628 | 1,227 | 1,226 | 1,226 | 1,246 | 1,268 | ||||||||||||||||||
Total equity | 13,035 | 9,824 | 8,491 | 7,171 | 6,478 | 6,123 |
(1) | Amounts presented in US$ have been translated for the convenience of the reader at €1.00 to US$1.3269, the Noon Buying Rate for converting €1.00 into dollars on December 30, 2010. See “Item 3. Key Information — Exchange Rates” for recent exchange rates between the Euro and the dollar. | |
(2) | Operating profit is the numerator and total revenue is the denominator in the calculation of operating margin. Profit attributable to owners of parent is the numerator and weighted average number of shares outstanding is the denominator in the calculation of earnings per share. | |
(3) | The large increase in total assets from 2009 to 2010 was mainly due to the acquisition of Sybase in 2010 and the large increase in total assets |
from 2007 to 2008 was due to the acquisition of Business Objects in 2008. See Note (4) to our Consolidated Financial Statements for more information on acquisitions. |
(4) | The balances include primarily bonds, private placements and bank loans. Current is defined as having a remaining life of one year or less; non-current is defined as having a remaining term exceeding one year. The significant increase in current financial liabilities during 2008 was due to financial debt incurred to finance the acquisition of Business Objects. The significant increase in non-financial liabilities in 2010 was due to an acquisition-term loan used to finance the acquisition of Sybase. In addition, we issued two bonds and a U.S. private placement transaction, of | |
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which, the proceeds were primarily used to finance the acquisition of Sybase. See Note (18b) to our Consolidated Financial Statements for more information on our liabilities. | ||
(5) | The 2007 and 2008 figures reflect cancellations of 23 million and 21 million treasury shares effective September 7, 2007 and September 4, 2008, respectively. See “Item 9. The Offer and Listing — General” for more detail on the cancellation of shares. |
Year | Average(1) | High | Low | |||||||||
2006 | 1.2661 | 1.3327 | 1.1860 | |||||||||
2007 | 1.3797 | 1.4862 | 1.2904 | |||||||||
2008 | 1.4695 | 1.6010 | 1.2446 | |||||||||
2009 | 1.3955 | 1.5100 | 1.2547 | |||||||||
2010 | 1.3216 | 1.4536 | 1.1959 |
Month | High | Low | ||||||
2010 | ||||||||
July | 1.3069 | 1.2464 | ||||||
August | 1.3282 | 1.2652 | ||||||
September | 1.3638 | 1.2708 | ||||||
October | 1.4066 | 1.3688 | ||||||
November | 1.4224 | 1.3036 | ||||||
December | 1.3395 | 1.3089 | ||||||
2011 | ||||||||
January | 1.3715 | 1.2944 | ||||||
February | 1.3794 | 1.3474 | ||||||
March (through March 3, 2011) | 1.3947 | 1.3813 |
(1) | The average of the applicable Noon Buying Rates on the last day of each month during the relevant period. |
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Dividend Paid per Ordinary Share | ||||||||
Year Ended December 31, | € | US$ | ||||||
2006 | 0.46 | 0.62 | (1) | |||||
2007 | 0.50 | 0.77 | (1) | |||||
2008 | 0.50 | 0.68 | (1) | |||||
2009 | 0.50 | 0.60 | (1) | |||||
2010 (proposed) | 0.60 | (2) | 0.84 | (2)(3) |
(1) | Translated for the convenience of the reader from euro into U.S. dollars at the Noon Buying Rate for converting euro into U.S. dollars on the dividend payment date. The Depositary is required to convert any dividend payments |
received from SAP as promptly as practicable upon receipt. |
(2) | Subject to approval at the Annual General Meeting of Shareholders of SAP AG currently scheduled to be held on May 25, 2011. | |
(3) | Translated for the convenience of the reader from euro into U.S. dollars at the Noon Buying Rate for converting euro into U.S. dollars on March 3, 2011 of US$1.3947 per €1.00. The dividend paid may differ due to changes in the exchange rate. |
• | Generally declining IT investment | |
• | Decreased customer demand for our software and services, including delayed, canceled, and smaller orders |
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• | Customers’ inability to obtain credit on acceptable terms, or at all, to finance purchases of our software and services | |
• | Increased incidence of default and insolvency of customers, business partners, and key suppliers | |
• | Increased default risk, which may lead to significant write-downs in the future | |
• | Greater pressure on the prices of our products and services | |
• | Pressure on our operating margin |
• | Regional and local economic decline or instability and resulting market uncertainty | |
• | General economic or political conditions in each country or region | |
• | Conflict and overlap among different tax regimes | |
• | Possible tax constraints impeding business operations in certain countries | |
• | The management of an organization spread over various jurisdictions | |
• | Exchange rate fluctuations | |
• | Longer payment cycles |
• | Regulatory constraints such as import and export restrictions, competition law regimes, legislation governing the use of the Internet, additional requirements for the development, certification, and distribution of software and services, trade restrictions, changes in tariff and freight rates and travel and communication costs | |
• | Expenses associated with the customization of our products on a local level and transacting business in the local currency | |
• | Differing demands from works councils and labor unions in the different countries | |
• | The higher cost of doing business internationally |
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• | The relevant counterparties may not renew their agreements with us at all or on terms acceptable to us | |
• | The relevant counterparties may fail to provide high-quality products and services | |
• | The relevant counterparties may not devote sufficient resources to promote, sell, support, and integrate their products within our portfolio |
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• | Climate change and other environmental issues like energy management, water use, and waste | |
• | Corporate integrity | |
• | Human resource management, including health, safety, diversity, and employee satisfaction | |
• | The ethical behavior of suppliers | |
• | Customer satisfaction | |
• | The accessibility and safety of our products | |
• | Privacy and data protection in connection with the use of SAP products |
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• | the relatively long sales cycles for many of our products; | |
• | the large size and extended timing of individual license transactions; | |
• | the timing of the introduction of new products or product enhancements by us or our competitors; | |
• | changes in customer budgets; | |
• | seasonality of a customer’s technology purchases; and | |
• | other general economic, social and market conditions, such as the global economic crisis. |
• | expansion of our operations; | |
• | research and development directed towards new products and product enhancements; and | |
• | development of new deployment models, particular on demand and on device, and new distribution and resale channels, particularly for small and midsize enterprises. |
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• | the announcement of new products or product enhancements by us or our competitors; | |
• | technological innovation by us or our competitors; | |
• | quarterly variations in our results of operations or results that fail to meet our or our financial analysts’ expectations; | |
• | changes in revenue and revenue growth rates on a consolidated basis or for specific geographic areas, business units, products or product categories; | |
• | changes in our externally communicated outlook; | |
• | changes in our capital structure, for example due to the potential future issuance of addition debt instruments; | |
• | general market conditions specific to particular industries; | |
• | litigation to which we are a party; | |
• | general and country specific economic or political conditions (particularly wars, terrorist attacks, etc.); | |
• | proposed and completed acquisitions or other significant transactions by us or our competitors; and | |
• | general market conditions. |
• | Our SAP trained consultants may not be immediately available to assist customers in the implementation of our products | |
• | The features of the implemented software may not meet the expectations or the software may not fit the business model of the customer | |
• | Third-party consultants may not have the expertise or resources to successfully implement the software | |
• | Customer-specific factors may destabilize the implementation of the software | |
• | Customers and partners may not implement the measures offered by SAP to safeguard against technical risks |
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• | Continue to enhance and expand our existing products and services | |
• | Develop and introduce new products and provide new services that satisfy increasingly sophisticated customer requirements, keep pace with technological developments, and are accepted in the market |
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• | It may not be possible to successfully integrate the acquired business, and its different business and licensing models. | |
• | It may not be possible to integrate the acquired technologies or products with current products and technologies. | |
• | It may not be possible to retain key personnel of the acquired business. | |
• | We may assume material unknown liabilities and contingent liabilities of acquired companies, including legal, tax, intellectual property, or other significant liabilities that may not be detected by the due diligence process. | |
• | We may incur debt or significant cash expenditures. | |
• | We may have difficulty implementing, restoring, or maintaining internal controls, procedures, and policies. |
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• | There may be a negative impact on relationships with customers, partners, or third-party providers of technology or products. | |
• | We may have difficulty integrating the acquired company’s accounting, human resource, and other administrative systems. | |
• | There may be regulatory constraints. | |
• | The acquired business may have practices or policies that are incompatible with our compliance requirements. |
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• | SAP Business Suite software is designed for use by large organizations and international corporations. The software supports core business operations ranging from supplier relationships to production, warehouse management, sales, and all administrative functions, through to customer relationships. We offer specific solutions for industries, for instance, banking, high tech, oil and gas, utilities, chemicals, healthcare, retail, consumer products, and the public sector. | |
• | SAP BusinessAll-in-One solutions, the SAP Business ByDesign solution, and the SAP Business One application address the needs of small businesses and midsize companies. | |
• | The SAP BusinessObjects portfolio covers a variety of demands for small to large companies with solutions for business users who need to analyze and report information, make informed strategic and tactical decisions, build business plans, and manage risk and compliance. | |
• | SAP solutions for sustainability help enable organizations’ sustainability initiatives. These solutions include the measurement of sustainability key performance indicators, energy and carbon management, and solutions for product safety, environment, health, and safety. | |
• | The SAP NetWeaver technology platform integrates information and business processes across diverse technologies and organizational structures. | |
• | Sybase delivers mission-critical enterprise software and services to manage, |
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analyze and mobilize information. With Sybase software, companies migrate to wireless communication in which critical information and applications are available on mobile devices at any time. |
• | Technology & Innovation Platform | |
• | Products & Solutions | |
• | Global Customer Operations | |
• | Chief Operations Office | |
• | Global Finance & Administration | |
• | Human Resources | |
• | On Device & Sybase |
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• | SAP Customer Relationship Management (SAP CRM) helps organizations manage and monitor sales, service, and marketing processes. The application also supports key backoffice activities such as spare-parts management, demand planning, billing, and fulfillment. With built-in analytical and business intelligence functionalities, support for the mobile workforce, and substantial multichannel capabilities, SAP CRM helps companies develop customer insight, predict changes, and make real-time course corrections. | |
• | SAP ERP supportsend-to-end business processes including finance, human capital management, asset management, sales, procurement, and other essential activities. SAP ERP enables industry-specific processes with functionality that can be activated |
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selectively, keeping the application core stable and helping to ensure maximum performance. | ||
• | SAP Product Lifecycle Management (SAP PLM) helps companies manage, track, and control product-related information over the complete product and asset life cycle — and across the extended supply chain. SAP PLM is designed to facilitate creativity and to free the product innovation process from organizational constraints. | |
• | SAP Supplier Relationship Management (SAP SRM) supports key procurement activities including demand-driven sourcing, centralized contract management, operational procurement, and interaction with suppliers through |
multiple channels. SAP SRM helps accelerate and optimize the entireprocure-to-pay cycle by enabling integrated processes and enforcing contract compliance, which can result in realizable savings. | ||
• | SAP Supply Chain Management (SAP SCM) enables companies to adapt their supply-chain processes to the rapidly changing competitive environment. The application helps transform traditional supply chains — with linear, sequential processes — into open, configurable, and responsive supply networks. As a result, companies can improve their response to demand and supply dynamics across a globally distributed environment. |
Consumer Industries • Consumer products • Retail • Wholesale distribution Financial Services Industries • Banking • Insurance Discrete Manufacturing Industries • Aerospace and defense • Automotive • Engineering, construction, and operations • High tech • Industrial machinery and components Process Manufacturing Industries • Chemicals • Life sciences • Mill products • Mining • Oil and gas | Public Service Industries • Defense and security • Healthcare • Higher education and research • Public sector Service Industries • Media • Professional services • Telecommunications • Transportation and logistics • Utilities |
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• | SAP Advanced Metering Infrastructure Integration for Utilities enables energy suppliers to operate on various business processes with their customer, from tracking consumption to billing and many other processes in one integrated system. This drives the optimization of revenue and demand, enables more cost-effective customer service, and facilitates market efficiency and the automation of data exchanges at new business networks of energy suppliers and infrastructure operators. | |
• | SAP BusinessObjects Sustainability Performance Management, an application that helps organizations more easily set sustainability goals and objectives, measure and communicate performance, and reduce data collection costs and errors. | |
• | SAP Carbon Impact (SAP CI), an on-demand solution that helps organizations accurately measure, profitably reduce, and confidently report greenhouse gas emissions and other |
environmental impacts across internal operations and the supply chain. | ||
• | SAP Environmental Health and Safety Management (SAP EHS), an application that addresses regulatory compliance and helps companies efficiently comply and protect their people and plant by taking an integrated approach to all aspects of risk and compliance. | |
• | SAP Manufacturing Integration and Intelligence (SAP MII), an application that provides the tools and content to help customers track and identify opportunities for energy reduction in manufacturing. |
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• | SAP Sourcing OnDemand: Large enterprises, under constant pressure to boost profitability, must find ways to reduce costs associated with procurement of goods and services. The SAP Sourcing OnDemand solution addresses these challenges with support for key processes such as strategic sourcing, contract life-cycle management, and supplier management. The solution streamlines the contract creation, negotiation and amendment processes while also supporting complex supplier identification, qualification, and evaluation processes. | |
• | SAP Contract Lifecycle Management OnDemand: Contract life-cycle management software from SAP allows sourcing professionals to generate, negotiate, and manage contracts within a central contract repository. Contract managers can create a library of standard contracts and contract clauses to promote and enforce legal standards during the contract authoring process. Support for check-in/check-out, redlining, and version comparison is also provided. |
• | SAP Supplier Management OnDemand: The supplier management application enables an organization to establish a central repository of their suppliers used in sourcing and contracting events. In addition, this module provides the ability to define key metrics and scorecards to manage supplier performance. | |
• | The SAP Carbon Impact OnDemand solution helps companies reduce their energy and carbon footprint across their entire operations and product supply chains. Designed for the global economy, the software allows organizations to report, analyze, and reduce their worldwide energy and greenhouse gas emissions in the most cost-effective way. The solution enables companies to adapt their carbon reduction strategy to the swiftly changing global market environments, characterized by volatile energy prices and tightening regulations, such as the introduction of the U.S. EPA Mandatory Reporting Rule. |
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• | SAP and ClickSoftware Technologies jointly offer the SAP Workforce Scheduling and Optimization application by ClickSoftware. Resold by SAP, the solution helps businesses maximize mobile workforce performance and drive operational excellence through |
decision support and optimization technology. | ||
• | Building on a highly successful strategic relationship, SAP and Open Text signed an agreement that allows SAP to resell Open Text’s text digital asset management solution as the SAP Digital Asset Management application by Open Text. Designed to help businesses optimize a full spectrum of rich media, the application supports marketing departments in all industries, as well as media industry publishing houses, entertainment firms, and broadcasters. Also, SAP and Open Text announced continued expansion of their strategic relationship to include employee file management capabilities. SAP resells Open Text’s solution for employee information management under the name SAP Employee File Management application by Open Text. | |
• | SAP and EMC announced an expansion of their global strategic alliance, which includes a reseller relationship, deeper technology integrations, and joint sales and marketing activities. Under the agreement, SAP will resell newly developed solutions — leveraging EMC Documentum enterprise content management, EMC Captiva intelligent enterprise capture and EMC Document Sciences customer communications management. The solutions are designed to help financial services firms automate paper-intensive processes, such as loan origination and claims handling. | |
• | SAP accelerated the creation of a partner ecosystem around the SAP Business ByDesign solution. By equipping partners with robust tools and engagement support, SAP aims to establish the on-demand solution as a foundation on which partners can offer additional features and industry expertise that |
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meet the needs of a broader group of customers. | ||
• | Speeding the journey toward cloud computing, SAP and several strategic partners demonstrate together with customers promising test results running SAP software on Vblock architecture. Utilizing the Virtual Computing Environment (VCE) coalition and its Vblock Infrastructure Packages, Cisco, EMC, and VMware are working with SAP to unleash the benefits of virtualization — an emerging data center architecture that can enable enhanced agility and reduced costs. | |
• | In an effort to meet growing demands of the governance, risk, and compliance (GRC) market, SAP and CA Technologies have begun collaborating to help customers manage risk across their business and IT processes. Leveraging products from CA Technologies with leading GRC applications from SAP will allow our customers to gain tighter control over their IT risk and compliance initiatives while focusing on long-term value creation for the business. | |
• | To help businesses increase operational efficiency while enhancing the way they communicate with their customers, SAP and StreamServe agreed to offer StreamServe’s leading document automation solution as a solution extension from SAP. Resold as the SAP Document Presentment application by StreamServe, this innovative solution automates the generation and personalization of documents (such as billing statements) and communications from multiple applications to multiple output types, including print,e-mail, fax, and mobile. |
• | The SAP Developer Network (SDN) community offers more than two million members in more than 200 countries the chance to trade experience and insights, pursue business opportunities, and learn from each other. It is the biggest innovation community associated with SAP. SDN includes discussion forums, blogs, wikis, software, and tool downloads, ande-learning. A wealth of technical assets attracts more than half a million visitors to SDN every month. | |
• | The Business Process Expert (BPX) community is a business process community with more than 800,000 members in 18 industries covering a wide variety of horizontal subjects. Collaboration in the community, the sharing of best practices, and advanced training offerings are among the catalysts that can generate process innovation. Community members, including, for example, specialists on diverse industries, business and application consultants, CIOs, and business process experts, find ample opportunities to exchange ideas in moderated forums, wikis, and expert blogs. | |
• | The SAP BusinessObjects community has more than 500,000 members and |
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provides an environment for SAP BusinessObjects users and developers to share best practices and pursue innovation opportunities on SAP BusinessObjects offerings. | ||
• | The SAP University Alliances community, with more than 250,000 members, focuses on bringing real-life SAP knowledge and skills into university classrooms. This is part of SAP’s corporate citizenship commitment to educate and mentor the students and graduates who will become tomorrow’s business experts and IT leaders. |
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• | In July, we acquired Sybase, a U.S. company headquartered in Dublin, California (United States). Sybase delivers a range of solutions to ensure that customer information is securely managed and mobilized, including enterprise and mobile databases, middleware, synchronization, encryption and device management software, and mobile messaging services. Information management, analytics, and enterprise mobility solutions by Sybase are proven in the most data-intensive industries on all major systems, networks, and devices. The acquisition |
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underpins our vision of the unwired enterprise. It brings to us technologies with which we can deliver a leading mobile platform for business that is based on open standards, runs on all major mobile operating systems, and manages and supports all major device types. The combination of SAP and Sybase solutions offer customers a complete and optimized high-performance business analytics infrastructure. By porting, certifying, and optimizing SAP Business Suite and other solutions on Sybase data management servers, we will bring our customers a greater choice of database platforms for their SAP applications. | ||
• | In July, we acquired TechniData, a German company and a strategic SAP partner for more than 15 years. This acquisition is in line with our commitment to helping companies execute their sustainability strategies. TechniData is a leading supplier of product safety and of environment, health, and safety (EHS) solutions. TechniData provides software, systems integration, and managed EHS services, and content to help companies comply with the applicable regulations. | |
• | In December, we acquired certain assets, including intellectual property, customer contracts, and employee contracts, from cundus, a German company. The acquisition of cundus’s financial disclosure management solutions extends our portfolio of finance solutions with a collaborative offering that helps enterprises achieve a timely, accurate, and more cost-effective, and controlled financial close process. In current economic conditions, companies and their finance departments are under greater pressure to comply with International Financial Reporting Standards (IFRS) and requirements to file financial and business information |
using extensible business reporting language (XBRL). | ||
• | In February 2011, SAP acquired security software, identity and access management software, as well as assets including development and consulting resources from SECUDE, a leading vendor of application security solutions in Switzerland. SAP will include Secure Login and Enterprise Single Sign-On in its product portfolio to provide its customers with secure client-server communications for their SAP systems. |
• | Spring Wireless is based in Brazil and deliversend-to-end mobility solutions designed to enable business and organizations to increase productivity, optimize real-time processes and operations, and maximize their business success. | |
• | Aepona is a pioneer and global market leader in bringing mobile intelligence to cloud computing and is based in Northern Ireland (UK). | |
• | Splashtop (formerly known as DeviceVM) is a privately held software company based in San Jose, California (United States), offering products that improve the personal computing experience on tablets, smartphones, laptops, and netbooks. | |
• | MuleSoft, headquartered in San Francisco, California (United States), is a |
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Web middleware company, providing enterprise-class software to integrate on-premise and cloud applications. | ||
• | Based in San Jose, California (United States), Lavante provides on-demand supplier information management and recovery audit solutions for companies and their suppliers. | |
• | On Deck Capital lends capital to main-street businesses through a software platform which incorporates a proprietary credit model based on business information rather than personal credit scores. The company is headquartered in New York City, New York (United States). |
• | Carbon footprint: SAP recognizes its responsibility to protect the environment by lowering emissions contributing to climate change. We acknowledge carbon emissions as a proxy measure for inefficient operations and excess spend. SAP’s goal is to reduce total GHG emissions to levels of the year 2000 by 2020. This equates to lowering emissions by about 50% from 2007 levels. GHG emissions for 2010 totaled approximately 425 kilotonnes. This represents a decrease of 6% compared to the 450 kilotonnes level in 2009. The main contributors to the 2010 GHG savings were energy efficiency projects, changes of our employees’ commuting behavior, and the continued purchase of renewable energy. | |
• | Total energy consumption: Our total energy consumption includes all energy produced or purchased by our organization (for example, the electricity powering our buildings and data centers as well as the fuel propelling our corporate cars). We did not have an overall goal for reducing total energy consumption in 2010, but rather pursued program goals such as reducing facility electricity use. These related efforts allowed us to reduce our energy consumption from 2,907 terajoules in 2009 to 2,847 terajoules in 2010. | |
• | Data center energy: We focus on making data centers more energy efficient by measuring and managing the energy use of the data center on a per employee basis. In 2010, two data centers in Germany were certified as |
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energy efficient by TÜV Rheinland. The data centers were specifically recognized for the use of advanced technologies like virtualization, optimal temperature reduction, and climate control. Our continuous efforts led to a decrease of the data center energy intensity from 3,038 kilowatt hours per FTE (2009) to 2,763 kilowatt hours per FTE in 2010. | ||
• | Renewable energy consumed: SAP is using more and more electricity from renewable sources. We purchase some of this green electricity from local utility companies and produce some using solar panels on our facilities. At the end of 2010, about 48% of our total electricity consumption stemmed from renewable sources. More specifically, 35% of total electricity consumption is bought by SAP and 13% stems from renewable electricity already available within country electricity grids. | |
• | Employee turnover: We are committed to attracting, developing and retaining the best people in the industry. We view our turnover rate as an important gauge of our performance. In 2010, our global employee turnover rate was 9%, a decrease compared to 2009 (11%) when employee turnover was also driven by the reduction of workforce under the cost-containment program in 2009. | |
• | Women in management: Because women are significantly underrepresented in engineering, science, and information technology (IT), the IT industry struggles with gender equality, especially in management. SAP is working to recruit, retain, and promote qualified women. We pay attention to the percentage of women in top management as a measure of our success. Their number remained relatively flat, 11.5% in 2010 compared to 11.0% in 2009. |
• | Employee engagement: The engagement of our employees is a leading indicator of being an employer of choice and of our ability to deliver innovative solutions to the market. We measure employee engagement as a combination of commitment, pride, and loyalty, as well as being an advocate of SAP. A bright spot in our recent employee survey was that 83% of our employees confirmed they are proud to work for SAP. At the same time our employee engagement index fell from 69% to 68% between 2009 and 2010. While 68% is still an average ranking compared to the industry benchmark, it is an all-time low for SAP. The employee engagement will be addressed using a comprehensivefollow-up process based on activities ranging from education to workshops, team analysis, feedback sessions to action plans. | |
• | Health: SAP’s health management organization has developed a holistic and comprehensive program to meet the needs of our employees who have sedentary, highly demanding intellectual jobs. We use the Business Health Culture Index (BHCI) to measure the stress/satisfaction balance of employees, an indicator of organizational health and readiness to meet strategic objectives. In 2010, our BHCI was 59% compared to 61% in 2009. | |
• | Customer satisfaction: We firmly believe that SAP’s success was and will always be linked to the success and satisfaction of our customers. We measure customer satisfaction using a number of indicators. Most importantly, we analyze overall satisfaction and likelihood of our customers to recommend SAP. On a scale of 1 to 10, overall customer satisfaction remains at a satisfactory level of 7.6 globally, compared to 7.7 in 2009. The likelihood to recommend increased by 0.1 to 8.1. |
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SAP identifies areas that need attention on a yearly basis. | ||
• | Software and software-related service revenue and operating margin: For information about these two sustainability indicators, see theOperating Results (IFRS) section. |
• | Strengthening communities and improving education: SAP gave a total of €12,844,914 in cash donations, we contributed approximately 59,000 volunteer hours in our schools and communities, and donated our technology solutions to 700 eligible non-profit organizations to support our global communities. Through its University Alliances program, SAP donates licenses for its world leading business software to schools and universities and improves career opportunities in business and information technology for more than 200,000 students worldwide | |
• | Economic opportunity: Our solutions and expertise provide fundamental infrastructure for economic development in our global markets. In 2010, we contributed technology and funding to several pilot programs in Ghana, including the Shea Value Chain Initiative that improves the living conditions for 1,500 Ghanaian women in the shea nut harvesting and butter business, and the Ghana Extractives Industries Transparency Initiative that improves transparency in the oil and mining industries. We have also started initiatives in Haiti to train young entrepreneurs and incubate local businesses to support economic recovery. |
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Ownership | Country of | |||||
Name of Subsidiary | % | Incorporation | Function | |||
Germany | ||||||
SAP Deutschland AG & Co. KG, Walldorf | 100 | Germany | Sales & Marketing, Consulting, Training and Administration | |||
Rest of EMEA | ||||||
SAP (UK) Limited, Feltham | 100 | Great Britain | Sales & Marketing, Consulting, Training, Customer Support, Research and Development and Administration | |||
SAP (Schweiz) AG, Biel | 100 | Switzerland | Sales & Marketing, Consulting, Training, Customer Support, Research and Development and Administration | |||
SAP France S.A., Paris | 100 | France | Sales & Marketing, Training and Administration | |||
United States | ||||||
SAP America, Inc., Newtown Square | 100 | USA | Sales & Marketing, Consulting, Training, Customer Support, Research and Development and Administration | |||
Rest of Americas | ||||||
SAP Canada Inc., Toronto | 100 | Canada | Sales & Marketing, Consulting, Training, Customer Support, Research and Development and Administration | |||
Japan | ||||||
SAP JAPAN Co., Ltd., Tokyo | 100 | Japan | Sales & Marketing, Consulting, Training, Customer Support, Research and Development and Administration | |||
Rest of APJ | ||||||
SAP Australia Pty Limited, Sydney | 100 | Australia | Sales & Marketing, Consulting, Training, Customer Support, Research and Development and Administration |
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ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
• | the economic conditions that we believe impacted our performance in 2010; | |
• | our outlook for 2010 compared to our actual performance (non-IFRS); | |
• | a discussion of our operating results for 2010 compared to 2009 and for 2009 compared to 2008; | |
• | the economic conditions we believe will impact our performance in 2011; and | |
• | our operational targets for 2011 (non-IFRS). |
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Support | Currency | Non-IFRS | ||||||||||||||||||||||||||
Revenue Not | Effect on the | Financial | ||||||||||||||||||||||||||
IFRS | Recorded | Acquisition- | Non-IFRS | Non-IFRS | Measure at | |||||||||||||||||||||||
Financial | Under | Related | Discontinued | Financial | Financial | Constant | ||||||||||||||||||||||
Measure | IFRS | Charges | Activities | Measure | Measure | Currency | ||||||||||||||||||||||
€ millions, except operating margin | ||||||||||||||||||||||||||||
Software and software-related service revenue | 9,794 | 74 | n/a | n/a | 9,868 | −570 | 9,298 | |||||||||||||||||||||
Total revenue(1) | 12,464 | 74 | n/a | n/a | 12,538 | −709 | 11,829 | |||||||||||||||||||||
Operating profit(1) | 2,591 | 74 | 300 | 983 | 3,947 | −339 | 3,608 | |||||||||||||||||||||
Operating margin in % | 20.8 | 0.5 | 2.4 | 7.8 | 31.5 | −1.0 | 30.5 |
(1) | Operating profit is the numerator and total revenue is the denominator in the calculation of our IFRS operating margin and the comparable non-IFRS operating margin, and are included in this table for the convenience of the reader. |
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Change | ||||||||||||
2010 | 2009 | 2010 vs 2009 | ||||||||||
€ millions | ||||||||||||
Software revenue | 3,265 | 2,607 | 25 | % | ||||||||
Support revenue | 6,133 | 5,285 | 16 | % | ||||||||
Subscription and other software-related service revenue | 396 | 306 | 29 | % | ||||||||
Software and software-related service revenue | 9,794 | 8,198 | 19 | % | ||||||||
Consulting revenue | 2,197 | 2,074 | 6 | % | ||||||||
Other service revenue | 473 | 400 | 18 | % | ||||||||
Professional services and other service revenue | 2,670 | 2,474 | 8 | % | ||||||||
Total revenue | 12,464 | 10,672 | 17 | % |
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Change in % | ||||||||||||
2010 | 2009 | 2010 vs 2009 | ||||||||||
€ millions | ||||||||||||
Germany | 2,195 | 2,029 | 8 | % | ||||||||
Rest of EMEA | 4,068 | 3,614 | 13 | % | ||||||||
Total EMEA | 6,263 | 5,643 | 11 | % | ||||||||
United States | 3,243 | 2,695 | 20 | % | ||||||||
Rest of Americas | 1,192 | 925 | 29 | % | ||||||||
Total Americas | 4,435 | 3,620 | 23 | % | ||||||||
Japan | 513 | 476 | 8 | % | ||||||||
Rest of APJ | 1,253 | 933 | 34 | % | ||||||||
Total APJ | 1,766 | 1,409 | 25 | % | ||||||||
Total revenue | 12,464 | 10,672 | 17 | % |
Change in % | ||||||||||||
2010 | 2009 | 2010 vs. 2009 | ||||||||||
€ millions | ||||||||||||
Process industries | 2,529 | 2,008 | 25 | % | ||||||||
Discrete industries | 2,420 | 2,127 | 14 | % | ||||||||
Consumer industries | 2,367 | 1,976 | 21 | % | ||||||||
Service industries | 2,788 | 2,516 | 10 | % | ||||||||
Financial services | 1,058 | 909 | 16 | % | ||||||||
Public services | 1,302 | 1,136 | 14 | % | ||||||||
Total revenue | 12,464 | 10,672 | 17 | % |
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Change | ||||||||||||
2010 | 2009 | 2010 vs. 2009 | ||||||||||
€ millions | ||||||||||||
Cost of software and software-related services | −1,823 | −1,658 | 10 | % | ||||||||
Cost of professional services and other services | −2,071 | −1,851 | 12 | % | ||||||||
Research and development | −1,729 | −1,591 | 9 | % | ||||||||
Sales and marketing | −2,645 | −2,199 | 20 | % | ||||||||
General and administration | −636 | −564 | 13 | % | ||||||||
Restructuring | 3 | −198 | <-100 | % | ||||||||
TomorrowNow litigation | −981 | −56 | >100 | % | ||||||||
Other operating income, net | 9 | 33 | −73 | % | ||||||||
Total operating expenses | −9,873 | −8,084 | 22 | % |
Change | ||||||||||
2010 | 2009 | 2010 vs. 2009 | ||||||||
€ million, except for operating margin | ||||||||||
Operating profit | 2,591 | 2,588 | 0% | |||||||
Operating margin in % | 20.8 | 24.3 | −3.5pp |
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Change in % | ||||||||||
Product Segment | 2010 | 2009 | 2010 vs. 2009 | |||||||
€ millions, unless otherwise stated | ||||||||||
External revenue | 9,020 | 7,846 | 15 | |||||||
Segment expenses | −3,625 | −3,115 | 16 | |||||||
Segment contribution | 5,395 | 4,731 | 14 | |||||||
Segment profitability | 60 | % | 60 | % | 0pp |
Change in % | ||||||||||
Consulting Segment | 2010 | 2009 | 2010 vs. 2009 | |||||||
External revenue | 2,714 | 2,498 | 9 | |||||||
Segment expenses | −1,968 | −1,717 | 15 | |||||||
Segment contribution | 746 | 781 | −5 | |||||||
Segment profitability | 28 | % | 31 | % | −4pp |
Change in % | ||||||||||
Training Segment | 2010 | 2009 | 2010 vs. 2009 | |||||||
External revenue | 362 | 332 | 9 | |||||||
Segment expenses | −226 | −217 | 4 | |||||||
Segment contribution | 136 | 115 | 18 | |||||||
Segment profitability | 38 | % | 35 | % | 3pp |
Change in % | ||||||||||
Sybase Segment | 2010 | 2009 | 2010 vs. 2009 | |||||||
External revenue | 387 | 0 | N/A | |||||||
Segment expenses | −260 | 0 | N/A | |||||||
Segment contribution | 127 | 0 | N/A | |||||||
Segment profitability | 33 | % | N/A | N/A |
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Change | ||||||||||||
2009 | 2008 | 2009 vs. 2008 | ||||||||||
€ millions | ||||||||||||
Software revenue | 2,607 | 3,606 | −28 | % | ||||||||
Support revenue | 5,285 | 4,602 | 15 | % | ||||||||
Subscription and other software-related service revenue | 306 | 258 | 19 | % | ||||||||
Software and software-related service revenue | 8,198 | 8,466 | −3 | % | ||||||||
Consulting revenue | 2,074 | 2,498 | −17 | % | ||||||||
Other service revenue | 400 | 611 | −35 | % | ||||||||
Professional services and other service revenue | 2,474 | 3,109 | −20 | % | ||||||||
Total revenue | 10,672 | 11,575 | −8 | % |
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Change in % | ||||||||||||
2009 | 2008 | 2009 vs. 2008 | ||||||||||
€ millions | ||||||||||||
Germany | 2,029 | 2,193 | −7 | % | ||||||||
Rest of EMEA | 3,614 | 4,013 | −10 | % | ||||||||
Total EMEA | 5,643 | 6,206 | −9 | % | ||||||||
United States | 2,695 | 2,890 | −7 | % | ||||||||
Rest of Americas | 925 | 990 | −7 | % | ||||||||
Total Americas | 3,620 | 3,880 | −7 | % | ||||||||
Japan | 476 | 515 | −8 | % | ||||||||
Rest of APJ | 933 | 974 | −4 | % | ||||||||
Total APJ | 1,409 | 1,489 | −5 | % | ||||||||
Total revenue | 10,672 | 11,575 | −8 | % |
Change in % | ||||||||||||
2009 | 2008 | 2009 vs. 2008 | ||||||||||
€ millions | ||||||||||||
Process industries | 2,008 | 2,367 | −15 | % | ||||||||
Discrete industries | 2,127 | 2,434 | −13 | % | ||||||||
Consumer industries | 1,976 | 2,235 | −12 | % | ||||||||
Service industries | 2,516 | 2,706 | −7 | % | ||||||||
Financial services | 909 | 774 | 17 | % | ||||||||
Public services | 1,136 | 1,059 | 7 | % | ||||||||
Total revenue | 10,672 | 11,575 | −8 | % |
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Change | ||||||||||||
2009 | 2008 | 2009 vs. 2008 | ||||||||||
€ millions | ||||||||||||
Cost of software and software-related services | −1,658 | −1,672 | −1 | % | ||||||||
Cost of professional services and other services | −1,851 | −2,285 | −19 | % | ||||||||
Research and development | −1,591 | −1,627 | −2 | % | ||||||||
Sales and marketing | −2,199 | −2,546 | −14 | % | ||||||||
General and administration | −564 | −624 | −10 | % | ||||||||
Restructuring | −198 | −60 | >100 | % | ||||||||
TomorrowNow litigation | −56 | −71 | −21 | % | ||||||||
Other operating income, net | 33 | 11 | >100 | % | ||||||||
Total operating expenses | −8,084 | −8,874 | −9 | % |
Change | ||||||||||
2009 | 2008 | 2009 vs. 2008 | ||||||||
€ million, except for operating margin | ||||||||||
Operating profit | 2,588 | 2,701 | −4% | |||||||
Operating margin in % | 24.3 | 23.3 | 1.0pp |
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Change in % | ||||||||||
2009 | 2008 | 2009 vs. 2008 | ||||||||
€ millions, unless otherwise stated | ||||||||||
Product Segment | ||||||||||
External revenue | 7,846 | 8,366 | −6 | |||||||
Segment expenses | −3,120 | −3,655 | −15 | |||||||
Segment contribution | 4,726 | 4,711 | 0 | |||||||
Segment profitability | 60 | % | 56 | % | 4pp |
Change in % | ||||||||||
Consulting Segment | 2009 | 2008 | 2009 vs. 2008 | |||||||
External revenue | 2,499 | 2,824 | −12 | |||||||
Segment expenses | −1,724 | −2,040 | −15 | |||||||
Segment contribution | 775 | 784 | −1 | |||||||
Segment profitability | 31 | % | 28 | % | 3pp |
Change in % | ||||||||||
Training Segment | 2009 | 2008 | 2009 vs. 2008 | |||||||
External revenue | 332 | 525 | −37 | |||||||
Segment expenses | −217 | −300 | −28 | |||||||
Segment contribution | 115 | 225 | −49 | |||||||
Segment profitability | 35 | % | 43 | % | −8pp |
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• | We expect full-year 2011 non-IFRS software and software-related service revenue to increase in a range of 10% to 14% at constant currencies (2010: €9.87 billion). | |
• | We expect full-year 2011 non-IFRS operating profit to be in a range of €4.45 billion to €4.65 billion at constant currencies (2010: €4.01 billion), resulting in 2011 non-IFRS operating margin increasing in a range of 0.5 to 1.0 percentage points at constant currencies (2010: 32.0%). | |
• | For the full-year 2011, we project an IFRS effective tax rate of 27.0% to 28.0% (2010: 22.5%) and a non-IFRS effective tax rate of 27.5% to 28.5% (2010: 27.3%). |
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Support | ||||||||||||||||||||
Revenue | ||||||||||||||||||||
IFRS | Not | Non-IFRS | ||||||||||||||||||
Financial | Recorded | Operating | Discontinued | Financial | ||||||||||||||||
Measure | Under IFRS | Expenses(1) | Activities(3) | Measure | ||||||||||||||||
€ millions, unless otherwise stated | ||||||||||||||||||||
Software and software-related | ||||||||||||||||||||
service revenue | 9,794 | 74 | N/A | N/A | 9,868 | |||||||||||||||
Total revenue(2) | 12,464 | 74 | N/A | N/A | 12,538 | |||||||||||||||
Operating profit(2) | 2,591 | 74 | 360 | 983 | 4,007 | |||||||||||||||
Operating margin in % | 20.8 | 0.5 | 2.9 | 7.8 | 32.0 |
(1) | Included in operating expenses are acquisition-related charges, share-based compensation expenses, and restructuring charges. | |
(2) | These financial measures are the numerator or the denominator in the calculation of our non-IFRS operating margin and the comparable IFRS operating margin, and are included in this table for transparency. | |
(3) | The discontinued activities include the results of our discontinued TomorrowNow business. |
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2010 | 2009 | Change in % | ||||||||||
€ millions | ||||||||||||
Cash and cash equivalents | 3,518 | 1,884 | 87 | |||||||||
Current investments | 10 | 400 | −98 | |||||||||
Total group liquidity | 3,528 | 2,284 | 54 | |||||||||
Current bank loans | 1 | 4 | −75 | |||||||||
Net liquidity 1 | 3,527 | 2,280 | 54 | |||||||||
Non-current bank loans | 1,106 | 2 | >100 | |||||||||
Private placement transactions | 1,071 | 697 | 54 | |||||||||
Bonds | 2,200 | 0 | N/A | |||||||||
Net liquidity 2 | −850 | 1,581 | <-100 |
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Years Ended December 31, | Change in % | Change in % | ||||||||||||||||||
2010 | 2009 | 2008 | 2010 vs. 2009 | 2009 vs. 2008 | ||||||||||||||||
€ millions | ||||||||||||||||||||
Net cash flows from operating activities | 2,932 | 3,015 | 2,158 | −3 | 40 | |||||||||||||||
Net cash flows from investing activities | −3,994 | −299 | −3,766 | >100 | −92 | |||||||||||||||
Net cash flows from financing activities | 2,510 | −2,166 | 1,281 | <-100 | <-100 |
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Payments due by period | ||||||||||||||||||||
Less than | More than | |||||||||||||||||||
Contractual obligations | Total | 1 year | 1-3 years | 3-5 years | 5 years | |||||||||||||||
€ millions | ||||||||||||||||||||
Debt obligations(1) | 4,960 | 211 | 2,915 | 1,097 | 737 | |||||||||||||||
Other non-current obligations on the statement of financial position(2) | 85 | 0 | 6 | 2 | 77 | |||||||||||||||
Operating lease obligations(3) | 754 | 210 | 276 | 158 | 110 | |||||||||||||||
Purchase obligations(3) | 461 | 305 | 95 | 27 | 34 | |||||||||||||||
Total | 6,260 | 726 | 3,292 | 1,284 | 958 |
(1) | This represents bank loans, private placement transactions, bonds, other financial liabilities and interest thereon. |
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(2) | Amounts mainly consist of employee-related liabilities. Not included in the table are non-current tax liabilities of €371 million, which include provisions for uncertainties in income taxes. | |
(3) | See Note (23) to our Consolidated Financial Statements for additional information about operating lease and purchase obligations. Our expected contributions to our pension and other post employment benefit plans are not included in the table above. We expect to contribute in 2011 statutory minimum and discretionary amounts of €1 million to our German defined benefit plans and €31 million to our foreign defined benefit plans, all of which are expected to be paid as cash contributions. Our contributions to our German and foreign defined contribution plans have ranged from €100 million to €136 million in 2008 through 2010; we expect similar contributions to be made in 2011. |
• | revenue recognition; | |
• | valuation of trade receivables; | |
• | accounting for share-based compensation; | |
• | accounting for income tax; |
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• | accounting for business combinations; | |
• | subsequent accounting for goodwill and other intangibles; | |
• | accounting for legal contingencies; and | |
• | recognition of internally generated intangible assets from development. |
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ITEM 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
Year | Year | |||||||||||||
First | Term | |||||||||||||
Name | Age | Principal Occupation | Elected | Expires | ||||||||||
Prof. Dr. h.c. mult. Hasso Plattner, Chairman(1)(2)(4)(6)(7)(8)(11) | 67 | Chairman of the Supervisory Board | 2003 | 2012 | ||||||||||
Pekka Ala-Pietilä(1)(7)(8)(11) | 54 | Co-founder and CEO Blyk Ltd. | 2002 | 2012 | ||||||||||
Prof. Dr. Wilhelm Haarmann(1)(2)(4)(5)(11) | 60 | Attorney at Law, Certified Public Auditor and Certified Tax Advisor; HAARMANN Partnerschaftsgesellschaft, Rechtsanwälte, Steuerberater, Wirtschaftsprüfer | 1988 | 2012 | ||||||||||
Bernard Liautaud(7)(12) | 48 | General Partner, Balderton Capital | 2008 | 2012 | ||||||||||
Dr. h.c. Hartmut Mehdorn(1)(5)(6) | 68 | Independent Consultant | 1998 | 2012 | ||||||||||
Prof. Dr.-Ing. Dr. h.c. Dr.-Ing. E.h. Joachim Milberg(1)(2)(3)(4)(7)(8) | 67 | Chairman of the Supervisory Board of BMW AG | 2007 | 2012 | ||||||||||
Dr. Erhard Schipporeit(1)(3)(10)(11) | 62 | Management Consultant | 2005 | 2012 | ||||||||||
Prof. Dr.-Ing. Dr.-Ing. E.h. Klaus Wucherer(1)(7) | 66 | Managing Director of Dr. Klaus Wucherer Innovations- und Technologieberatung GmbH | 2007 | 2012 | ||||||||||
Lars Lamadé, Vice Chairman(4)(6)(9)(11) | 39 | Employee, Project Manager Service & Support | 2002 | 2012 | ||||||||||
Thomas Bamberger(3)(9) | 43 | Employee, Chief Operating Officer Operations | 2007 | 2012 | ||||||||||
Panagiotis Bissiritsas(2)(5)(9) | 42 | Employee, Support Expert | 2007 | 2012 | ||||||||||
Willi Burbach(4)(7)(9) | 48 | Employee, Developer | 1993 | 2012 | ||||||||||
Peter Koop(4)(7)(9) | 44 | Employee, Industry Business Development Expert | 2007 | 2012 | ||||||||||
Christiane Kuntz-Mayr(7) | 48 | Employee, Deputy Chairperson of the Works Council of SAP AG | 2009 | 2012 | ||||||||||
Dr. Gerhard Maier(2)(3)(9) | 57 | Employee, Development Project Manager | 1989 | 2012 | ||||||||||
Stefan Schulz(5)(6)(7)(9)(11) | 41 | Employee, Development Project Manager | 2002 | 2012 |
(1) | Elected by SAP AG’s shareholders on May 10, 2007. | |
(2) | Member of the Compensation Committee. | |
(3) | Member of the Audit Committee. |
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(4) | Member of the General Committee. | |
(5) | Member of the Finance and Investment Committee. | |
(6) | Member of the Mediation Committee. | |
(7) | Member of the Technology and Strategy Committee. | |
(8) | Member of the Nomination Committee. | |
(9) | Elected by SAP AG’s employees on April 23, 2007. | |
(10) | Member of the Audit Committee and determined to be the Audit Committee financial expert. | |
(11) | Member of the Special Committee. | |
(12) | Elected by SAP AG’s shareholders on June 3, 2008, replaced August-Wilhelm Scheer who resigned from the Supervisory Board on the same day. |
Year First | Year Current | |||||||
Name | Appointed | Term Expires | ||||||
Bill McDermott, Co-CEO | 2008 | 2012 | ||||||
Jim Hagemann Snabe, Co-CEO | 2008 | 2012 | ||||||
Dr. Werner Brandt | 2001 | 2013 | ||||||
Dr. Angelika Dammann | 2010 | 2013 | ||||||
Gerhard Oswald | 1996 | 2011 | ||||||
Vishal Sikka | 2010 | 2012 |
• | In February 2010, Léo Apotheker resigned as a member of the Executive Board and CEO. | |
• | In February 2010, Bill McDermott and Jim Hagemann Snabe became Co-CEOs, succeeding Léo Apotheker. | |
• | In February 2010, Vishal Sikka became a member of the Executive Board. | |
• | In February 2010, John Schwarz resigned as a member of the Executive Board. | |
• | In February 2010, Gerhard Oswald became COO replacing Erwin Gunst who stepped down. |
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• | In July 2010, Angelika Dammann became a member of the Executive Board. |
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• | A fixed annual salary | |
• | A variable short-term incentive (STI) plan to reward performance in the plan year | |
• | A variable medium-term incentive (MTI) plan to reward performance in the plan year and the two subsequent years | |
• | A share-based long-term incentive (LTI) plan tied to the price of SAP stock |
• | The fixed element is paid as a monthly salary. | |
• | The variable compensation under the STI plan depends on the SAP Group’s performance against the KPI target values for non-IFRS constant currency software and software-related service revenue growth, non-IFRS constant currency operating margin, and the cash conversion rate (that is, the ratio of non-IFRS operating cash flow to non-IFRS profit after tax). In addition, the STI element has a discretionary component that allows the Supervisory Board, at the end of the period in question, to address not only an Executive Board member’s individual performance, but also SAP’s performance in terms of market position, innovative power, customer satisfaction, employee satisfaction, and attractiveness as an employer. Moreover, if there has been any extraordinary and unforeseeable event the Supervisory Board can, at its reasonable discretion, retroactively adjust payouts up or down in the interest of SAP. On February 10, 2011, the Supervisory Board assessed SAP’s performance against the agreed targets and determined the amount of STI |
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payable. The STI pays out after the Annual General Meeting of Shareholders in May 2011. | ||
• | The variable compensation under the MTI plan depends on the SAP Group’s performance over the three years 2010 to 2012 against the KPI target values for software and software-related service revenue growth and earnings per share (both of which are non-IFRS, constant currency values). In addition, the MTI element has a discretionary component that allows the Supervisory Board, at the end of the period in question, to address not only an Executive Board member’s individual performance, but also SAP’s performance over the three years 2010 to 2012 in terms of market position, innovative power, customer satisfaction, employee satisfaction, and attractiveness as an employer. |
• | The LTI component consists of the issue of virtual stock options under the terms of the 2010 stock option (SAP SOP 2010) plan. For the terms and detail of the SAP SOP 2010 plan, see theNotes to Consolidated Financial Statementssection, Note (28). The number of virtual stock options to be issued to each member of the Executive Board in 2010 by way of long-term incentive was decided by the Supervisory Board on July 6, 2010, with effect from September 9, 2010, and reflects the fair value of the virtual stock options awarded. |
Long-Term | ||||||||||||||||||||
Performance-Related | Incentive | |||||||||||||||||||
Fixed Elements | Element | Elements | ||||||||||||||||||
Directors’ | Share-Based | |||||||||||||||||||
Profit- | Compensation | |||||||||||||||||||
Salary | Other(1) | Sharing (STI) | (SAP SOP 2010)(2) | Total | ||||||||||||||||
€(000) | ||||||||||||||||||||
Bill McDermott (co-CEO from February 7, 2010)(3) | 1,355.2 | 196.4 | 1,920.6 | 950.0 | 4,422.2 | |||||||||||||||
Jim Hagemann Snabe (co-CEO from February 7, 2010) | 1,150.0 | 114.5 | 1,648.7 | 950.0 | 3,863.2 | |||||||||||||||
Dr. Werner Brandt | 700.0 | 18.4 | 997.7 | 577.0 | 2,293.1 | |||||||||||||||
Dr. Angelika Dammann (member from July 1, 2010) | 350.0 | 106.4 | 498.9 | 288.5 | 1,243.8 | |||||||||||||||
Gerhard Oswald | 700.0 | 97.6 | 997.7 | 577.0 | 2,372.3 | |||||||||||||||
Vishal Sikka (member from February 7, 2010)(7) | 697.3 | 215.4 | 969.9 | 577.0 | 2,459.6 | |||||||||||||||
Léo Apotheker (CEO and member until February 7, 2010)(4) | 187.5 | 37.5 | — | — | 225.0 | |||||||||||||||
Erwin Gunst (member until January 31, 2010)(5) | 113.8 | 9.0 | — | — | 122.8 | |||||||||||||||
John Schwarz (member until February 11, 2010)(6) | 164.5 | 7.4 | — | — | 171.9 | |||||||||||||||
Total | 5,418.3 | 802.6 | 7,033.5 | 3,919.5 | 17,173.9 | |||||||||||||||
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(1) | Insurance contributions, benefits in kind, expenses for maintenance of two households due to work abroad, reimbursement legal and tax advice fees, nonrecurring payments, security services | |
(2) | Fair value at the time of grant | |
(3) | Includes discrete payments arising through application of the fixed exchange-rate clause to the following items: salary for 2010: € 205,200; profit-sharing bonus for 2010: € 271,900 | |
(4) | Léo Apotheker’s appointment as CEO and member of the Executive Board ended on February 7, 2010. His contract with SAP AG ended on March 31, 2010. | |
(5) | Erwin Gunst’s appointment as member of the Executive Board ended on January 31, 2010. His contract with SAP AG ended on March 31, 2010. | |
(6) | John Schwarz’s appointment as member of the Executive Board ended on February 11, 2010. His contract with SAP AG ended on March 31, 2010. Includes discrete payments arising through application of the fixed exchange-rate clause to the following items: Salary for 2010: € 4,900 | |
(7) | Includes discrete payments arising through application of the fixed exchange-rate clause to the following items: salary for 2010: € 70,100; profit-sharing bonus for 2010: € 76,100 |
MTI 2010 | ||||
Target | ||||
Payouts 2013 | ||||
€(000) | ||||
Bill McDermott (co-CEO from February 7, 2010) | 820.0 | |||
Jim Hagemann Snabe (co-CEO from February 7, 2010) | 820.0 | |||
Dr. Werner Brandt | 495.5 | |||
Dr. Angelika Dammann (member from July 1, 2010) | 247.8 | |||
Gerhard Oswald | 495.5 | |||
Vishal Sikka (member from February 7, 2010) | 443.9 | |||
Total | 3,322.7 | |||
2010 Grants | ||||||||||||||||||||||||||||
Fair | ||||||||||||||||||||||||||||
Fair | Value | Total | ||||||||||||||||||||||||||
Value per | Total Fair | per | Fair | |||||||||||||||||||||||||
Right at | Value at | Right on | Value on | |||||||||||||||||||||||||
Time of | Time of | Dec. 31, | Dec. 31, | |||||||||||||||||||||||||
Quantity | Grant | Grant | 2010 | 2010 | ||||||||||||||||||||||||
€ | €(000) | € | €(000) | |||||||||||||||||||||||||
Bill McDermott (co-CEO from February 7, 2010) | 135,714 | 7.00 | 950.0 | 8.19 | 1,111.5 | |||||||||||||||||||||||
Jim Hagemann Snabe (co-CEO from February 7, 2010) | 135,714 | 7.00 | 950.0 | 8.19 | 1,111.5 | |||||||||||||||||||||||
Dr. Werner Brandt | 82,428 | 7.00 | 577.0 | 8.19 | 675.1 | |||||||||||||||||||||||
Dr. Angelika Dammann (member from July 1, 2010) | 41,214 | 7.00 | 288.5 | 8.19 | 337.5 | |||||||||||||||||||||||
Gerhard Oswald | 82,428 | 7.00 | 577.0 | 8.19 | 675.1 | |||||||||||||||||||||||
Vishal Sikka (member from February 7, 2010) | 82,428 | 7.00 | 577.0 | 8.19 | 675.1 | |||||||||||||||||||||||
Total | 559,926 | 3,919.5 | 4,585.8 | |||||||||||||||||||||||||
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Performance- | Long-Term | |||||||||||||||||||
Related | Incentive Element | |||||||||||||||||||
Element | Share-Based | |||||||||||||||||||
Fixed Elements | Directors’ | Compensation | ||||||||||||||||||
Salary | Other(1) | Profit-Sharing | (SAP SOP 2009)(2) | Total | ||||||||||||||||
€(000) | ||||||||||||||||||||
Prof. Dr. Henning Kagermann(co-CEO and member until May 31, 2009) | 312.5 | 7.4 | 2,026.2 | — | 2,346.1 | |||||||||||||||
Léo Apotheker (CEO) | 750.0 | 137.3 | 4,862.8 | 950.0 | 6,700.1 | |||||||||||||||
Dr. Werner Brandt | 455.0 | 19.1 | 2,950.1 | 577.0 | 4,001.2 | |||||||||||||||
Erwin Gunst | 455.0 | 36.0 | 2,950.1 | 577.0 | 4,018.1 | |||||||||||||||
Prof. Dr. Claus E. Heinrich (member until May 31, 2009) | 189.6 | 9.3 | 658.8 | — | 857.7 | |||||||||||||||
Bill McDermott(3) | 900.4 | 74.9 | 2,776.7 | 577.0 | 4,329.0 | |||||||||||||||
Gerhard Oswald | 455.0 | 437.5 | 2,950.1 | 577.0 | 4,419.6 | |||||||||||||||
John Schwarz(4) | 581.5 | 28.2 | 2,910.7 | 577.0 | 4,097.4 | |||||||||||||||
Jim Hagemann Snabe | 455.0 | 131.1 | 2,950.1 | 577.0 | 4,113.2 | |||||||||||||||
Total | 4,554.0 | 880.8 | 25,035.6 | 4,412.0 | 34,882.4 | |||||||||||||||
(1) | Insurance contributions, benefits in kind, expenses for maintenance of two households due to work abroad, reimbursement legal and tax advice fees, leave compensation | |
(2) | Fair value at the time of grant | |
(3) | Includes discrete payments arising through application of the fixed exchange-rate clause to the following items: salary for 2008: € 29,600; profit-sharing bonus for 2008: € 53,200; salary for 2009: € 47,500; profit-sharing bonus for 2009: € 91,900 | |
(4) | Includes discrete payments arising through application of the fixed exchange-rate clause to the following items: salary for 2009: € 5,000; profit-sharing bonus for 2009: € 29,000 |
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2009 Allocations | ||||||||||||||||||||
Total Fair | ||||||||||||||||||||
Value of | ||||||||||||||||||||
Long-Term | ||||||||||||||||||||
Fair Value | Incentive | Fair Value | Total | |||||||||||||||||
per Right | Elements | per Right on | Value on | |||||||||||||||||
at Time of | at Time of | Dec. 31, | Dec. 31, | |||||||||||||||||
Quantity | Grant | Grant | 2009 | 2009 | ||||||||||||||||
€ | €(000) | € | €(000) | |||||||||||||||||
Bill McDermott (co-CEO from February 7, 2010) | 102,670 | 5.62 | 577.0 | 4.89 | 167.4 | |||||||||||||||
Jim Hagemann Snabe (co-CEO from February 7, 2010) | 102,670 | 5.62 | 577.0 | 4.89 | 167.4 | |||||||||||||||
Dr. Werner Brandt | 102,670 | 5.62 | 577.0 | 4.89 | 167.4 | |||||||||||||||
Gerhard Oswald | 102,670 | 5.62 | 577.0 | 4.89 | 167.4 | |||||||||||||||
Léo Apotheker (CEO and member until February 7, 2010)(1) | 169,040 | 5.62 | 950.0 | 4.89 | 275.5 | |||||||||||||||
Erwin Gunst (member until January 31, 2010)(2) | 102,670 | 5.62 | 577.0 | 4.89 | 167.4 | |||||||||||||||
John Schwarz (member until February 11, 2010)(3) | 102,670 | 5.62 | 577.0 | 4.89 | 167.4 | |||||||||||||||
Total | 785,060 | 4,412.0 | 1,279.9 | |||||||||||||||||
(1) | Léo Apotheker’s appointment as CEO and member of the Executive Board ended on February 7, 2010. His contract with SAP AG ended on March 31, 2010. | |
(2) | Erwin Gunst’s appointment as member of the Executive Board ended on January 31, 2010. His contract with SAP AG ended on March 31, 2010. | |
(3) | John Schwarz’s appointment as member of the Executive Board ended on February 11, 2010. His contract with SAP AG ended on March 31, 2010. |
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• | Bill McDermott and Vishal Sikka have rights to future benefits under the pension plan of SAP America. The pension plan of SAP America is a cash balance plan that on retirement provides either monthly pension payments or a lump sum. The pension becomes available from the beneficiary’s 65th birthday. Subject to certain conditions, the plan also provides earlier payment or invalidity benefits. The SAP America pension plan closed with effect from January 1, 2009. Interest continues to be paid on the earned rights to benefits. SAP also made contributions to a third-party pension plan for Bill McDermott and Vishal Sikka. SAP’s contributions reflect Bill McDermott’s and Vishal Sikka’s payments into this pension plan. Additionally in view of the close of the SAP America pension plan, SAP adjusted its payments to this non-SAP pension plan. In 2010, SAP paid contributions for Bill McDermott totaling €765,700 (2009: €199,600) and for Vishal Sikka totaling €153,200. |
• | Instead of paying for entitlements under the pension plan for Executive Board members, SAP pays equivalent amounts to a non-SAP pension plan for Jim Hagemann Snabe. In 2010, SAP paid contributions totaling €283,100 (2009: €108,400). | |
• | Gerhard Oswald’s performance-based retirement plan was discontinued when SAP introduced a contributory retirement pension plan. The pension benefits are derived from any accrued entitlements on December 31, 1999, under performance-based pension agreements and a salary-linked contribution for the period commencing January 1, 2000. | |
• | Léo Apotheker’s agreement provided only for a retirement pension, but not for a surviving dependant’s or disability pension. The pension contribution reflected his participation in the French social security system in that the employer contributions paid by SAP under the French social insurance plan are deducted from it. | |
• | SAP made no retirement pension plan contributions in respect of John Schwarz in 2009 and 2010. |
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Léo | ||||||||||||||||||||||||||||||||||||||||
Apo the- | ||||||||||||||||||||||||||||||||||||||||
Bill Mc | Dr. | Vishal | ker (CEO | Erwin | ||||||||||||||||||||||||||||||||||||
Dermott | Angelika | Sikka | and | Gunst | ||||||||||||||||||||||||||||||||||||
(co-CEO | Dammann | (Member | Member | (Member | ||||||||||||||||||||||||||||||||||||
from | Dr. | (Member | from | until | until | |||||||||||||||||||||||||||||||||||
February | Werner | from July | Gerhard | February | February | January | ||||||||||||||||||||||||||||||||||
7, 2010) | Brandt | 1, 2010) | Oswald | 7, 2010) | 7, 2010) | 31, 2010) | Total | |||||||||||||||||||||||||||||||||
€(000) | ||||||||||||||||||||||||||||||||||||||||
PBO January 1, 2009 | 955.0 | 701.8 | — | 3,099.1 | — | 439.8 | 389.2 | 5,584.9 | ||||||||||||||||||||||||||||||||
Less plan assets market value January 1, 2009 | 33.3 | 624.0 | — | 2,636.6 | — | 658.8 | 48.1 | 4,000.8 | ||||||||||||||||||||||||||||||||
Accrued January 1, 2009 | 921.7 | 77.8 | — | 462.5 | — | −219.0 | 341.1 | 1,584.1 | ||||||||||||||||||||||||||||||||
PBO change in 2009 | 3.1 | 201.0 | — | 527.1 | — | 88.4 | 92.0 | 911.6 | ||||||||||||||||||||||||||||||||
Plan assets change in 2009 | 9.2 | 31.1 | — | 237.6 | — | 29.2 | 97.4 | 404.5 | ||||||||||||||||||||||||||||||||
PBO December 31, 2009 | 958.1 | 902.8 | — | 3,626.2 | — | 528.2 | 481.2 | 6,496.5 | ||||||||||||||||||||||||||||||||
Less plan assets market value December 31, 2009 | 42.5 | 655.1 | — | 2,874.2 | — | 688.0 | 145.5 | 4,405.3 | ||||||||||||||||||||||||||||||||
Accrued December 31, 2009 | 915.6 | 247.7 | — | 752.0 | — | −159.8 | 335.7 | 2,091.2 | ||||||||||||||||||||||||||||||||
Accrued January 1, 2010 (new Board members) | — | — | 0.0 | — | 0.2 | — | — | 0.2 | ||||||||||||||||||||||||||||||||
PBO change in 2010 | 115.1 | 381.5 | 62.9 | 501.2 | 13.3 | 93.2 | −370.2 | 797.0 | ||||||||||||||||||||||||||||||||
Plan assets change in 2010 | 10.1 | 266.6 | 78.7 | 500.7 | 11.8 | 29.2 | 38.3 | 935.4 | ||||||||||||||||||||||||||||||||
PBO December 31, 2010 | 1,073.2 | 1,284.3 | 62.9 | 4,127.4 | 46.7 | 621.4 | 111.0 | 7,326.9 | ||||||||||||||||||||||||||||||||
Less plan assets market value December 31, 2010 | 52.6 | 921.7 | 78.7 | 3,374.9 | 45.0 | 717.2 | 183.8 | 5,373.9 | ||||||||||||||||||||||||||||||||
Accrued December 31, 2010 | 1,020.6 | 362.6 | −15.8 | 752.5 | 1.7 | −95.8 | −72.8 | 1,953.0 | ||||||||||||||||||||||||||||||||
Vested on | Vested on | |||||||
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
€(000) | ||||||||
Bill McDermott (co-CEO from February 7, 2010)(1) | 101.1 | 124.2 | ||||||
Dr. Werner Brandt | 72.9 | 54.1 | ||||||
Dr. Angelika Dammann (member from July 1, 2010) | 3.5 | — | ||||||
Gerhard Oswald | 228.1 | 208.4 | ||||||
Vishal Sikka (member from February 7, 2010)(1) | 6.3 | — | ||||||
Léo Apotheker (CEO and member until February 7, 2010) | 45.5 | 45.5 | ||||||
Erwin Gunst (member until January 31, 2010) | 8.8 | 34.4 |
(1) | The rights shown here for Bill McDermott and Vishal Sikka refer solely to rights under the SAP America, Inc. pension plan. |
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Net Present | ||||||
Value of | ||||||
Postcontractual | ||||||
Contract | Noncompete | |||||
Term | Abstention | |||||
Expires | Payment | |||||
€(000) | ||||||
Bill McDermott (co-CEO from February 7, 2010) | June 30, 2012 | 4,313.0 | ||||
Jim Hagemann Snabe (co-CEO from February 7, 2010) | June 30, 2012 | 3,767.8 | ||||
Dr. Werner Brandt | December 31, 2013 | 2,116.3 | ||||
Dr. Angelika Dammann (member from July 1, 2010) | June 30, 2013 | 1,174.8 | ||||
Gerhard Oswald | December 31, 2011 | 2,335.4 | ||||
Vishal Sikka (member from February 7, 2010) | December 31, 2012 | 2,357.6 | ||||
Total | 16,064.9 | |||||
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• | Léo Apotheker received monthly abstention compensation of €183,300, corresponding to 50% of his final average contractual compensation, in consideration of an agreed12-month postcontractual noncompete period. Due to Léo Apotheker’s taking on new employment, the abstention compensation was ended on October 31, 2010. | |
• | He received a payment of €3,168,500 in relation to the early termination of his contract, in accordance with the agreement on payments for early termination. | |
• | Upon termination of his employment contract, Léo Apotheker received compensation for unused leave totaling €459,500. |
• | He received a payment of €2,036,000 in accordance with the agreements on payments for early termination for health reasons. |
• | We have set aside the postcontractual noncompete provisions in his contract. No payment was made by SAP. |
• | In February 2010, we waived the postcontractual noncompete provisions in his contract. The postcontractual noncompete provisions were subject to a termination notice of six months. As he retired at the end of March 2010, he received monthly abstention compensation of €141,900, corresponding to 50% of his final average contractual compensation for the remaining noncompete period of five months. | |
• | John Schwarz received a payment of €2,934,500 in relation to the early termination of his contract, in accordance with the agreements on payments for early termination. | |
• | Upon termination of his employment contract, John Schwarz received compensation for unused leave totaling €70,500. | |
• | For the above mentioned amounts in euros payable in U.S. dollars the agreed fixed exchange rate of €1 = US$1.55664 based on the employment contract dated June 30, 2009 was applied. |
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Exercisable | ||||||||||||||||||||||||||||||||||||||||
Rights of | ||||||||||||||||||||||||||||||||||||||||
Retired | ||||||||||||||||||||||||||||||||||||||||
Members | ||||||||||||||||||||||||||||||||||||||||
Rights | of the | |||||||||||||||||||||||||||||||||||||||
Allocation on | Exercised | Executive | Forfeited | Holding on | ||||||||||||||||||||||||||||||||||||
September 9, 2010 | in 2010 | Board | Rights | December 31, 2010 | ||||||||||||||||||||||||||||||||||||
Strike | Quantity | Remaining | Quantity | Price on | Quantity | Quantity | Quantity | Remaining | ||||||||||||||||||||||||||||||||
Year | Price | of | Term in | of | Exercise | of | of | of | Term in | |||||||||||||||||||||||||||||||
Granted | per Share | Options | Years | Options | Date | Options | Options | Options | Years | |||||||||||||||||||||||||||||||
€ | ||||||||||||||||||||||||||||||||||||||||
Bill McDermott (co- CEO from February 7, 2010) | 2010 | 40.80 | 135,714 | 7.00 | — | — | — | — | 135,714 | 6.69 | ||||||||||||||||||||||||||||||
Jim Hagemann Snabe (co-CEO from February 7, 2010) | 2010 | 40.80 | 135,714 | 7.00 | — | — | — | — | 135,714 | 6.69 | ||||||||||||||||||||||||||||||
Dr. Werner Brandt | 2010 | 40.80 | 82,428 | 7.00 | — | — | — | — | 82,428 | 6.69 | ||||||||||||||||||||||||||||||
Dr. Angelika Dammann (member from July, 1, 2010) | 2010 | 40.80 | 41,214 | 7.00 | — | — | — | — | 41,214 | 6.69 | ||||||||||||||||||||||||||||||
Gerhard Oswald | 2010 | 40.80 | 82,428 | 7.00 | — | — | — | — | 82,428 | 6.69 | ||||||||||||||||||||||||||||||
Vishal Sikka (member from February 7, 2010) | 2010 | 40.80 | 82,428 | 7.00 | — | — | — | — | 82,428 | 6.69 | ||||||||||||||||||||||||||||||
Total | 559,926 | 559,926 | ||||||||||||||||||||||||||||||||||||||
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Exercisable | ||||||||||||||||||||||||||||||||||||||||
Rights of | ||||||||||||||||||||||||||||||||||||||||
Retired | ||||||||||||||||||||||||||||||||||||||||
Members | ||||||||||||||||||||||||||||||||||||||||
Rights | of the | |||||||||||||||||||||||||||||||||||||||
Holding on | Exercised | Executive | Forfeited | Holding on | ||||||||||||||||||||||||||||||||||||
January 1, 2010 | in 2010 | Board | Rights | December 31, 2010 | ||||||||||||||||||||||||||||||||||||
Strike | Quantity | Remaining | Quantity | Price on | Quantity | Quantity | Quantity | Remaining | ||||||||||||||||||||||||||||||||
Year | Price | of | Term in | of | Exercise | of | of | of | Term in | |||||||||||||||||||||||||||||||
Granted | per Share | Options | Years | Options | Date | Options | Options | Options | Years | |||||||||||||||||||||||||||||||
€ | ||||||||||||||||||||||||||||||||||||||||
Bill McDermott (co- CEO from February 7, 2010) | 2009 | variable | 102,670 | 4.35 | — | — | — | — | 102,670 | 3.35 | ||||||||||||||||||||||||||||||
Jim Hagemann Snabe (co-CEO from February 7, 2010) | 2009 | variable | 102,670 | 4.35 | — | — | — | — | 102,670 | 3.35 | ||||||||||||||||||||||||||||||
Dr. Werner Brandt | 2009 | variable | 102,670 | 4.35 | — | — | — | — | 102,670 | 3.35 | ||||||||||||||||||||||||||||||
Gerhard Oswald | 2009 | variable | 102,670 | 4.35 | — | — | — | — | 102,670 | 3.35 | ||||||||||||||||||||||||||||||
Vishal Sikka (member from February 7, 2010)(1) | 2009 | variable | 35,588 | 4.35 | — | — | — | — | 35,588 | 3.35 | ||||||||||||||||||||||||||||||
Léo Apotheker (CEO and member until February 7, 2010)(2) | 2009 | variable | 169,040 | 4.35 | — | — | −169,040 | — | — | 3.35 | ||||||||||||||||||||||||||||||
John Schwarz (member until February 11, 2010)(3) | 2009 | variable | 102,670 | 4.35 | — | — | −102,670 | — | — | 3.35 | ||||||||||||||||||||||||||||||
Total | 717,978 | −271,710 | 446,268 | |||||||||||||||||||||||||||||||||||||
(1) | The holding was allocated before appointment to the Executive Board. | |
(2) | Léo Apotheker’s appointment as CEO and member of the Executive Board ended on February 7, 2010. His contract with SAP AG ended on March 31, 2010. | |
(3) | John Schwarz’s appointment as member of the Executive Board ended on February 11, 2010. His contract with SAP AG ended on March 31, 2010. |
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Exercisable | ||||||||||||||||||||||||||||||||||||||||
Rights of | ||||||||||||||||||||||||||||||||||||||||
Retired | ||||||||||||||||||||||||||||||||||||||||
Members | ||||||||||||||||||||||||||||||||||||||||
Rights | of the | |||||||||||||||||||||||||||||||||||||||
Holding on | Exercised | Executive | Forfeited | Holding on | ||||||||||||||||||||||||||||||||||||
January 1, 2010 | in 2010 | Board | Rights | December 31, 2010 | ||||||||||||||||||||||||||||||||||||
Strike | Quantity | Remaining | Quantity | Price on | Quantity | Quantity | Quantity | Remaining | ||||||||||||||||||||||||||||||||
Year | Price | of | Term in | of | Exercise | of | of | of | Term in | |||||||||||||||||||||||||||||||
Granted | per Share | Options | Years | Options | Date | Options | Options | Options | Years | |||||||||||||||||||||||||||||||
€ | ||||||||||||||||||||||||||||||||||||||||
Bill McDermott (co-CEO from February 7, 2010)(1) | 2007 | 39.28 | 62,508 | 2.23 | — | — | — | — | 62,508 | 1.23 | ||||||||||||||||||||||||||||||
2008 | 35.96 | 70,284 | 3.18 | — | — | — | — | 70,284 | 2.18 | |||||||||||||||||||||||||||||||
Jim Hagemann Snabe (co-CEO from February 7, 2010)(1) | 2007 | 39.28 | 37,505 | 2.23 | — | — | — | — | 37,505 | 1.23 | ||||||||||||||||||||||||||||||
2008 | 35.96 | 56,228 | 3.18 | — | — | — | — | 56,228 | 2.18 | |||||||||||||||||||||||||||||||
Dr. Werner Brandt | 2007 | 39.28 | 72,216 | 2.23 | — | — | — | — | 72,216 | 1.23 | ||||||||||||||||||||||||||||||
2008 | 35.96 | 81,200 | 3.18 | — | — | — | — | 81,200 | 2.18 | |||||||||||||||||||||||||||||||
Gerhard Oswald | 2007 | 39.28 | 72,216 | 2.23 | — | — | — | — | 72,216 | 1.23 | ||||||||||||||||||||||||||||||
2008 | 35.96 | 81,200 | 3.18 | — | — | — | — | 81,200 | 2.18 | |||||||||||||||||||||||||||||||
Vishal Sikka (member from February 7, 2010)(1) | 2007 | 39.28 | 12,502 | 2.23 | — | — | — | — | 12,502 | 1.23 | ||||||||||||||||||||||||||||||
2008 | 35.96 | 17,571 | 3.18 | — | — | — | — | 17,571 | 2.18 | |||||||||||||||||||||||||||||||
Léo Apotheker (CEO and member until February 7, 2010)(2) | 2007 | 39.28 | 79,093 | 2.23 | — | — | −79,093 | — | — | 1.23 | ||||||||||||||||||||||||||||||
2008 | 35.96 | 88,933 | 3.18 | — | — | −88,933 | — | — | 2.18 | |||||||||||||||||||||||||||||||
Erwin Gunst (member until January 31, 2010)(3) | 2007 | 39.28 | 56,258 | 2.23 | — | — | −56,258 | — | — | 1.23 | ||||||||||||||||||||||||||||||
2008 | 35.96 | 70,284 | 3.18 | — | — | −70,284 | — | — | 2.18 | |||||||||||||||||||||||||||||||
John Schwarz (member until February 11, 2010)(4) | 2008 | 35.96 | 81,200 | 3.18 | — | — | −81,200 | — | — | 2.18 | ||||||||||||||||||||||||||||||
Total | 939,198 | −375,768 | 563,430 | |||||||||||||||||||||||||||||||||||||
(1) | The holding was allocated before appointment to the Executive Board. | |
(2) | Léo Apotheker’s appointment as CEO and member of the Executive Board ended on February 7, 2010. His contract with SAP AG ended on March 31, 2010. | |
(3) | Erwin Gunst’s appointment as member of the Executive Board ended on January 31, 2010. His contract with SAP AG ended on March 31, 2010. | |
(4) | John Schwarz’s appointment as member of the Executive Board ended on February 11, 2010. His contract with SAP AG ended on March 31, 2010. |
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Exercisable | ||||||||||||||||||||||||||||||||||||||||
Rights of | ||||||||||||||||||||||||||||||||||||||||
Retired | ||||||||||||||||||||||||||||||||||||||||
Holding | Members | |||||||||||||||||||||||||||||||||||||||
on | Rights | of the | Holding on | |||||||||||||||||||||||||||||||||||||
January | Exercised | Executive | Forfeited | December | ||||||||||||||||||||||||||||||||||||
1, 2010 | in 2010 | Board | Rights | 31, 2010 | ||||||||||||||||||||||||||||||||||||
Strike | Quantity | Remaining | Quantity | Price on | Quantity | Quantity | Quantity | Remaining | ||||||||||||||||||||||||||||||||
Year | Price | of | Term in | of | Exercise | of | of | of | Term in | |||||||||||||||||||||||||||||||
Granted | per Share | Shares | Years | Shares | Date | Shares | Shares | Shares | Years | |||||||||||||||||||||||||||||||
€ | € | |||||||||||||||||||||||||||||||||||||||
Bill McDermott (co- CEO from February 7, 2010)(1) | 2006 | 46.48 | 77,296 | 1.10 | — | — | — | — | 77,296 | 0.10 | ||||||||||||||||||||||||||||||
Jim Hagemann Snabe (co-CEO from February 7, 2010)(1) | 2005 | 33.55 | 51,180 | 0.11 | −22,008 | 33.67 | — | −29,172 | — | 0.00 | ||||||||||||||||||||||||||||||
2006 | 46.48 | 37,164 | 1.10 | — | — | — | — | 37,164 | 0.10 | |||||||||||||||||||||||||||||||
Dr. Werner Brandt | 2005 | 33.55 | 149,980 | 0.11 | −64,496 | 33.67 | — | −85,484 | — | 0.00 | ||||||||||||||||||||||||||||||
2006 | 46.48 | 87,292 | 1.10 | — | — | — | — | 87,292 | 0.10 | |||||||||||||||||||||||||||||||
Gerhard Oswald | 2005 | 33.55 | 149,980 | 0.11 | −64,496 | 33.67 | — | −85,484 | — | 0.00 | ||||||||||||||||||||||||||||||
2006 | 46.48 | 87,292 | 1.10 | — | — | — | — | 87,292 | 0.10 | |||||||||||||||||||||||||||||||
Vishal Sikka (member from February 7, 2010)(1) | 2006 | 46.48 | 7,436 | 1.10 | — | — | — | — | 7,436 | 0.10 | ||||||||||||||||||||||||||||||
Léo Apotheker (CEO and member until February 7, 2010)(2) | 2005 | 33.55 | 149,980 | 0.11 | −64,496 | 33.67 | — | −85,484 | — | 0.00 | ||||||||||||||||||||||||||||||
2006 | 46.48 | 95,604 | 1.10 | — | — | −95,604 | — | — | 0.10 | |||||||||||||||||||||||||||||||
Erwin Gunst (member until January 31, 2010)(3) | 2005 | 33.55 | 61,264 | 0.11 | −26,344 | 33.67 | — | −34,920 | — | 0.00 | ||||||||||||||||||||||||||||||
2006 | 46.48 | 44,596 | 1.10 | — | — | −44,596 | — | — | 0.10 | |||||||||||||||||||||||||||||||
Total | 999,064 | −241,840 | −140,200 | −320,544 | 296,480 | |||||||||||||||||||||||||||||||||||
(1) | The holding was allocated before appointment to the Executive Board. | |
(2) | Léo Apotheker’s appointment as CEO and member of the Executive Board ended on February 7, 2010. His contract with SAP AG ended on March 31, 2010. |
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(3) | Erwin Gunst’s appointment as member of the Executive Board ended on January 31, 2010. His contract with SAP AG ended on March 31, 2010. |
Exerciseable | ||||||||||||||||||||||||||||||||||||||||
Rights of | ||||||||||||||||||||||||||||||||||||||||
Retired | ||||||||||||||||||||||||||||||||||||||||
Members | ||||||||||||||||||||||||||||||||||||||||
Rights | of the | |||||||||||||||||||||||||||||||||||||||
Holding on | Exercised | Executive | Holding on | |||||||||||||||||||||||||||||||||||||
January 1, 2010 | in 2010 | Board | Forfeited | December 31, 2010 | ||||||||||||||||||||||||||||||||||||
Remaining | Price on | Rights | Remaining | |||||||||||||||||||||||||||||||||||||
Year | Strike Price | Quantity | Term in | Quantity of | Exercise | Quantity of | Quantity of | Quantity of | Term in | |||||||||||||||||||||||||||||||
Granted | per Share | of Shares | Years | Shares | Date | Shares | Shares | Shares | Years | |||||||||||||||||||||||||||||||
€ | € | |||||||||||||||||||||||||||||||||||||||
Dr. Werner Brandt | 2001 | 47.81 | 20,000 | 1.14 | — | — | — | — | 20,000 | 0.14 | ||||||||||||||||||||||||||||||
2002 | 37.88 | 120,000 | 2.14 | — | — | — | — | 120,000 | 1.14 | |||||||||||||||||||||||||||||||
Gerhard Oswald | 2000 | 72.58 | 65,700 | 0.14 | — | — | — | −65,700 | — | 0 | ||||||||||||||||||||||||||||||
2001 | 47.81 | 88,000 | 1.14 | — | — | — | — | 88,000 | 0.14 | |||||||||||||||||||||||||||||||
Léo Apotheker (CEO and member until February 7, 2010)(1) | 2001 | 47.81 | 120,000 | 1.14 | — | — | −120,000 | — | — | 0.14 | ||||||||||||||||||||||||||||||
2002 | 37.88 | 70,000 | 2.14 | — | — | −70,000 | — | — | 1.14 | |||||||||||||||||||||||||||||||
Total | 483,700 | −190,000 | −65,700 | 228,000 | ||||||||||||||||||||||||||||||||||||
(1) | Léo Apo theker’s appointment as CEO and member of the Executive Board ended on February 7, 2010. His contract with SAP AG ended on March 31, 2010. |
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2010 | 2009 | |||||||
€(000) | ||||||||
Bill McDermott (co-CEO from February 7, 2010) | 382.9 | 339.3 | ||||||
Jim Hagemann Snabe (co-CEO from February 7, 2010) | 373.8 | 318.3 | ||||||
Dr. Werner Brandt | 355.2 | 351.8 | ||||||
Dr. Angelika Dammann (member from July 1, 2010) | 28.1 | — | ||||||
Gerhard Oswald | 355.2 | 351.8 | ||||||
Vishal Sikka (member from February 7, 2010) | 151.8 | — | ||||||
Léo Apotheker (CEO and member until February 7, 2010)(1) | 575.0 | 376.3 | ||||||
Erwin Gunst (member until January 31, 2010)(1) | 371.7 | 343.1 | ||||||
John Schwarz (member until February 11, 2010)(1) | 393.8 | 397.0 | ||||||
Total | 2,987.5 | 2,477.6 | ||||||
(1) | Materially, the expense recorded in the report year reflects the fact that the rights did not expire on retirement but subsist until the end of the plan. IFRS 2 requires that it be immediately recognized at full fair value. |
Transaction Date | Transaction | Quantity | Unit Price in € | |||||||||||||
Jim Hagemann Snabe | February 1, 2010 | Stock sale(1 | ) | 22,008 | 33.6677 | |||||||||||
Gerhard Oswald | February 1, 2010 | Stock sale(1 | ) | 64,496 | 33.6677 | |||||||||||
Léo Apotheker (CEO and member of the Executive Board until February 7, 2010) | February 1, 2010 | Stock sale(1 | ) | 64,496 | 33.6677 | |||||||||||
Dr. Werner Brandt | February 1, 2010 | Stock sale(1 | ) | 64,496 | 33.6677 | |||||||||||
Dr. Angelika Dammann (member of the Executive Board from July 1, 2010) | August 23, 2010 | Stock purchase | 1,420 | 35.38 |
(1) | Sale of shares in line with SAP SOP 2002 |
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2010 | 2009 | |||||||||||||||||||||||||||||||
Compensation | Variable | Compensation | ||||||||||||||||||||||||||||||
Fixed | for Committee | Compen- | Fixed | for Committee | Variable | |||||||||||||||||||||||||||
Compensation | Work | sation | Total | Compensation | Work | Compensation | Total | |||||||||||||||||||||||||
€(000) | ||||||||||||||||||||||||||||||||
Prof. Dr. h.c. mult. Hasso Plattner (chairperson) | 100.0 | 60.0 | 150.0 | 310.0 | 75.0 | 20.0 | 125.0 | 220.0 | ||||||||||||||||||||||||
Lars Lamadé (deputy chairperson) | 70.0 | 1.7 | 130.0 | 201.7 | 50.0 | 2.5 | 100.0 | 152.5 | ||||||||||||||||||||||||
Pekka Ala-Pietilä | 50.0 | 20.0 | 100.0 | 170.0 | 37.5 | 5.0 | 62.5 | 105.0 | ||||||||||||||||||||||||
Thomas Bamberger | 50.0 | 15.0 | 100.0 | 165.0 | 37.5 | 2.5 | 62.5 | 102.5 | ||||||||||||||||||||||||
Panagiotis Bissiritsas | 50.0 | 20.0 | 100.0 | 170.0 | 37.5 | 5.0 | 62.5 | 105.0 | ||||||||||||||||||||||||
Willi Burbach | 50.0 | 10.0 | 100.0 | 160.0 | 37.5 | 5.0 | 62.5 | 105.0 | ||||||||||||||||||||||||
Prof. Dr. Wilhelm Haarmann | 50.0 | 31.7 | 100.0 | 181.7 | 37.5 | 10.0 | 62.5 | 110.0 | ||||||||||||||||||||||||
Peter Koop | 50.0 | 10.0 | 100.0 | 160.0 | 37.5 | 4.8 | 62.5 | 104.8 | ||||||||||||||||||||||||
Christiane Kuntz-Mayr | 50.0 | 10.0 | 100.0 | 160.0 | 37.5 | 2.3 | 62.5 | 102.3 | ||||||||||||||||||||||||
Bernard Liautaud | 50.0 | 10.0 | 100.0 | 160.0 | 37.5 | 2.5 | 62.5 | 102.5 | ||||||||||||||||||||||||
Dr. Gerhard Maier | 50.0 | 25.0 | 100.0 | 175.0 | 37.5 | 5.0 | 62.5 | 105.0 | ||||||||||||||||||||||||
Dr. h.c. Hartmut Mehdorn | 50.0 | 10.0 | 100.0 | 160.0 | 37.5 | 2.5 | 62.5 | 102.5 | ||||||||||||||||||||||||
Prof. Dr.-Ing. Dr. h.c. Dr.-Ing. E.h. Joachim Milberg | 50.0 | 35.0 | 100.0 | 185.0 | 37.5 | 10.0 | 62.5 | 110.0 | ||||||||||||||||||||||||
Dr. Erhard Schipporeit | 50.0 | 35.0 | 100.0 | 185.0 | 37.5 | 7.5 | 62.5 | 107.5 | ||||||||||||||||||||||||
Stefan Schulz | 50.0 | 21.7 | 100.0 | 171.7 | 37.5 | 5.0 | 62.5 | 105.0 | ||||||||||||||||||||||||
Prof. Dr.-Ing. Dr.-Ing. E.h. Klaus Wucherer | 50.0 | 10.0 | 100.0 | 160.0 | 37.5 | 2.5 | 62.5 | 102.5 | ||||||||||||||||||||||||
Total | 870.0 | 325.0 | 1,680.0 | 2,875.0 | 650.0 | 92.1 | 1,100.0 | 1,842.1 | ||||||||||||||||||||||||
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Transaction Date | Transaction | Quantity | Unit Price in € | |||||||||||||
Thomas Bamberger(1) | February 1, 2010 | Stock sale | 4,404 | 33.6677 | ||||||||||||
Stefan Schulz(1) | February 1, 2010 | Stock sale | 300 | 33.6677 | ||||||||||||
Dr. Gerhard Maier(2) | November 15, 2010 | Stock sale | 7,000 | 36.40 |
(1) | Sale of shares in line with SAP SOP 2002 | |
(2) | Sale of shares in line with the LTI Plan 2000 |
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December 31, 2010 | December 31, 2009 | December 31, 2008 | ||||||||||||||||||||||||||||||||||||||||||||||
Asia | Asia | Asia | ||||||||||||||||||||||||||||||||||||||||||||||
Pacific | Pacific | Pacific | ||||||||||||||||||||||||||||||||||||||||||||||
Full-time equivalents | EMEA(1) | Americas | Japan | Total | EMEA(1) | Americas | Japan | Total | EMEA(1) | Americas | Japan | Total | ||||||||||||||||||||||||||||||||||||
Software and software-related services | 3,804 | 1,827 | 2,254 | 7,885 | 3,227 | 1,276 | 1,919 | 6,422 | 3,269 | 1,306 | 1,891 | 6,466 | ||||||||||||||||||||||||||||||||||||
Professional services and other services | 6,787 | 3,955 | 2,410 | 13,152 | 6,635 | 3,473 | 2,240 | 12,348 | 7,326 | 4,142 | 2,583 | 14,051 | ||||||||||||||||||||||||||||||||||||
Research and development | 8,617 | 3,154 | 4,113 | 15,884 | 8,525 | 2,534 | 3,755 | 14,814 | 8,687 | 2,767 | 4,094 | 15,548 | ||||||||||||||||||||||||||||||||||||
Sales and marketing | 4,593 | 4,214 | 2,180 | 10,987 | 4,202 | 3,559 | 1,752 | 9,513 | 4,645 | 4,014 | 2,042 | 10,701 | ||||||||||||||||||||||||||||||||||||
General and administration | 2,053 | 1,005 | 518 | 3,576 | 1,919 | 724 | 408 | 3,051 | 1,996 | 788 | 459 | 3,243 | ||||||||||||||||||||||||||||||||||||
Infrastructure | 1,135 | 628 | 266 | 2,029 | 854 | 408 | 174 | 1,436 | 905 | 445 | 185 | 1,535 | ||||||||||||||||||||||||||||||||||||
SAP Group (December 31) | 26,989 | 14,783 | 11,741 | 53,513 | 25,362 | 11,974 | 10,248 | 47,584 | 26,828 | 13,462 | 11,254 | 51,544 | ||||||||||||||||||||||||||||||||||||
thereof Sybase | 813 | 1,866 | 1,047 | 3,726 | ||||||||||||||||||||||||||||||||||||||||||||
SAP Group (average) | 25,929 | 13,164 | 10,877 | 49,970 | 25,927 | 12,288 | 10,554 | 48,769 | 26,561 | 13,872 | 11,128 | 51,561 |
(1) | Europe, Middle east, Africa |
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Ordinary Shares | ||||||||
Beneficially Owned | ||||||||
% of | ||||||||
Major Shareholders | Number | Outstanding | ||||||
Dietmar Hopp, collectively(1) | 75,273,200 | 6.132 | % | |||||
Hasso Plattner, Chairperson Supervisory Board, collectively(2) | 122,148,302 | 9.951 | % | |||||
Klaus Tschira, collectively(3) | 93,079,595 | 7.583 | % | |||||
Executive Board Members as a group (6 persons) | 13,747 | 0.001 | % | |||||
Supervisory Board Members as a group (16 persons) | 122,156,188 | 9.952 | % | |||||
Executive Board Members and Supervisory Board Members as a group (22 persons)(4) | 122,169,935 | 9.953 | % | |||||
Options and convertible bonds that are vested and exercisable within 60 days of March 3, 2011, held by Executive Board Members and Supervisory Board Members, collectively(5) | 35,075 | N/A |
(1) | Represents 75,273,200 ordinary shares beneficially owned by Dietmar Hopp, including 3,404,000 ordinary shares owned by DH Besitzgesellschaft mbH & Co. KG (formerly known as Golf Club St. Leon-Rot GmbH & Co. Betriebs-oHG) of which DH Verwaltungs-GmbH is the general partner and 71,869,200 ordinary shares owned by Dietmar Hopp Stiftung, GmbH. Mr. Hopp exercises voting and dispositive powers of the ordinary shares held by such entities. The foregoing information is based solely on a Schedule 13G filed by Dietmar Hopp and Dietmar Hopp Stiftung, GmbH on February 15, 2011. |
(2) | Includes Hasso Plattner Förderstiftung gGmbH and Hasso Plattner GmbH & Co. Beteiligungs-KG in which Hasso Plattner exercises sole voting and dispositive power. |
(3) | Includes Klaus Tschira Stiftung gGmbH and Dr. h. c. Tschira Beteiligungs GmbH & Co. KG in which Klaus Tschira exercises sole voting and dispositive power. |
(4) | We believe each of the other members of the Supervisory Board and the Executive Board beneficially owns less than 1% of SAP AG’s ordinary shares as of March 3, 2011. |
(5) | Includes 2,675 stock options and 32,400 convertible bonds. Each of these stock options and convertible bonds entitles the holder, if exercised or converted, to four SAP AG ordinary shares. |
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Price per | ||||||||||||||||||||||||
Ordinary Share (1) | DAX(2) | Price per ADR | ||||||||||||||||||||||
High | Low | High | Low | High | Low | |||||||||||||||||||
In € | In points | In US$ | ||||||||||||||||||||||
Annual Highs and Lows | ||||||||||||||||||||||||
2006 | 46.86 | 34.56 | 6,611.81 | 5,292.14 | 57.00 | 43.57 | ||||||||||||||||||
2007 | 42.27 | 33.37 | 8,105.69 | 6,447.70 | 59.86 | 44.45 | ||||||||||||||||||
2008 | 39.93 | 23.45 | 7,949.11 | 4,127.41 | 58.98 | 29.70 | ||||||||||||||||||
2009 | 35.26 | 25.00 | 6,011.55 | 3,666.41 | 52.37 | 31.69 | ||||||||||||||||||
2010 | 38.40 | 31.12 | 7,077.99 | 5,434.34 | 54.08 | 41.59 | ||||||||||||||||||
Quarterly Highs and Lows | ||||||||||||||||||||||||
2009 | ||||||||||||||||||||||||
First Quarter | 29.64 | 25.00 | 5,026.31 | 3,666.41 | 38.61 | 31.69 | ||||||||||||||||||
Second Quarter | 31.25 | 27.00 | 5,144.06 | 4,131.07 | 44.87 | 35.73 | ||||||||||||||||||
Third Quarter | 35.26 | 27.32 | 5,736.31 | 4,572.65 | 51.70 | 37.87 | ||||||||||||||||||
Fourth Quarter | 35.08 | 30.09 | 6,011.55 | 5,353.35 | 52.37 | 44.28 | ||||||||||||||||||
2010 | ||||||||||||||||||||||||
First Quarter | 35.86 | 31.12 | 6,156.85 | 5,434.34 | 50.64 | 42.81 | ||||||||||||||||||
Second Quarter | 37.68 | 33.97 | 6,332.10 | 5,670.04 | 49.93 | 41.59 | ||||||||||||||||||
Third Quarter | 37.86 | 34.46 | 6,351.60 | 5,816.20 | 49.84 | 43.54 | ||||||||||||||||||
Fourth Quarter | 38.40 | 35.84 | 7,077.99 | 6,134.21 | 54.08 | 46.93 | ||||||||||||||||||
Monthly Highs and Lows | ||||||||||||||||||||||||
2010 | ||||||||||||||||||||||||
July | 37.86 | 35.04 | 6,209.76 | 5,816.20 | 48.61 | 45.03 | ||||||||||||||||||
August | 35.61 | 34.46 | 6,351.60 | 5,899.50 | 47.11 | 43.54 | ||||||||||||||||||
September | 37.09 | 35.19 | 6,298.30 | 6,083.85 | 49.84 | 44.72 | ||||||||||||||||||
October | 38.30 | 36.18 | 6,639.21 | 6,134.21 | 54.08 | 49.63 | ||||||||||||||||||
November | 37.39 | 35.84 | 6,879.66 | 6,604.86 | 52.98 | 46.93 | ||||||||||||||||||
December | 38.40 | 36.24 | 7,077.99 | 6,866.63 | 50.76 | 47.59 | ||||||||||||||||||
2011 | ||||||||||||||||||||||||
January | 42.22 | 37.45 | 7,155.58 | 6,857.06 | 57.90 | 48.76 | ||||||||||||||||||
February | 44.67 | 42.55 | 7,426.81 | 7,130.50 | 60.56 | 58.49 | ||||||||||||||||||
March (through March 3, 2011) | 44.10 | 43.67 | 7,225.96 | 7,181.12 | 61.67 | 59.83 |
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(1) | Share prices for 2006 are retrospectively adjusted for the effect of the fourfold increase in the number of shares resulting from the capital increase which became effective December 15, 2006. |
(2) | The DAX is a continuously updated, capital-weighted performance index of 30 German blue chip companies. In principle, the shares included in the DAX are selected on the basis of their stock exchange turnover and the issuer’s free-float market capitalization. Adjustments to the DAX are made for capital changes, subscription rights and dividends. |
• | developing and marketing integrated product and service solutions fore-commerce; | |
• | developing software for information technology and the licensing of its use to others; | |
• | organization and deployment consulting, as well as user training, fore-commerce and other software solutions; | |
• | selling, leasing, renting and arranging the procurement and provision of all |
other forms of use of information technology systems and related equipment; and | ||
• | making capital investments in enterprises active in the field of information technology to promote the opening and advancement of international markets in the field of information technology. |
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sap.com/about/governance/statement/index.epx). As stipulated by law the declaration comprises the declaration of compliance with the recommendations of the GCGC pursuant to Sec. 161 of the German Stock Corporation Act, relevant disclosures of the company’s corporate governance practices such as ethical, work and welfare standards, and a description of the Executive Board and Supervisory Board’s rules of procedure as well
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• | changing the corporate purpose of the company set out in the articles of incorporation; | |
• | capital increases and capital decreases; | |
• | excluding preemptive rights of shareholders to subscribe for new shares or for treasury shares; | |
• | dissolution; |
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• | a merger into, or a consolidation with, another company; | |
• | a transfer of all or virtually all of the assets; and | |
• | a change of corporate form. |
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• | taxes and other governmental charges; | |
• | registration fees as may be in effect from time to time for the registration of transfers of SAP ordinary shares on any applicable register to the Depositary or its nominee or the custodian or its nominee in connection with deposits or withdrawals under the Deposit Agreement; | |
• | applicable air courier, cable, telex and facsimile expenses of the Depositary; | |
• | expenses incurred by the Depositary in the conversion of foreign currency; | |
• | $5.00 or less per 100 ADSs (or portion thereof) to the Depositary for the execution and delivery of ADRs (including in connection with the depositing of SAP ordinary shares or the exercising of rights) and the surrender of ADRs as well as for the distribution of other securities; |
• | a maximum aggregate service fee of U.S. $2.00 per 100 ADSs (or portion thereof) per calendar year to the Depositary for the services performed by the Depositary in administering the ADR program, including for processing any cash dividends and other cash distributions; and | |
• | $5.00 or less per 100 ADSs (or portion thereof) to the Depositary for distribution of securities other than SAP ordinary shares or rights. |
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1. | “Prohibited services:” This category includes services that our independent auditors must not be engaged to perform. These are services that are not permitted by applicable law or that would be inconsistent with maintaining the auditors’ independence. | |
2. | “Services requiring universal approval:” Services of this category may be provided by our independent auditors up to a certain aggregate |
amount in fees per year that is determined by the Audit Committee. | ||
3. | “Services requiring individual approval:” Services of this category may only be provided by our independent auditors if they have been individually (specifically) pre-approved by the Audit Committee or an Audit Committee member who is authorized by the Audit Committee to make such approvals. |
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(c)Total | ||||||||||||||||
Number of | ||||||||||||||||
Shares | (d)Maximum | |||||||||||||||
Purchased as | Number | |||||||||||||||
Part of | of Shares | |||||||||||||||
(b)Average | Publicly | that May | ||||||||||||||
(a)Total | Price Paid | Announced | Yet Be Purchased | |||||||||||||
Number of | per Share | Plans and | Under these Plans | |||||||||||||
Period | Shares Purchased | (in €) | Programs | and Programs | ||||||||||||
January 1/1/10 — 1/31/10 | 0 | — | 0 | 85,376,024 | ||||||||||||
February 2/1/10 — 2/28/10 | 2,080,000 | 33.68 | 2,080,000 | 85,739,597 | ||||||||||||
March 3/1/10 — 3/31/10 | 1,452,221 | 34.43 | 1,452,221 | 84,342,011 | ||||||||||||
April 4/1/10 — 4/30/10 | 0 | — | 0 | 84,377,528 | ||||||||||||
May 5/1/10 — 5/31/10 | 0 | — | 0 | 84,414,338 | ||||||||||||
June 6/1/10 — 6/30/10 | 0 | — | 0 | 84,452,898 | ||||||||||||
July 7/1/10 — 7/31/10 | 0 | — | 0 | 84,522,861 | ||||||||||||
August 8/1/10 — 8/31/10 | 2,852,250 | 35.05 | 2,852,250 | 81,721,099 | ||||||||||||
September 9/1/10 — 9/30/10 | 0 | — | 0 | 83,229,826 | ||||||||||||
October 10/1/10 — 10/31/10 | 0 | — | 0 | 83,263,076 | ||||||||||||
November 11/1/10 — 11/30/10 | 0 | — | 0 | 83,446,772 | ||||||||||||
December 12/1/10 — 12/31/10 | 0 | — | 0 | 83,515,629 | ||||||||||||
Total | 6,384,471 | 34.46 | 6,384,471 | |||||||||||||
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• | Report of Independent Registered Public Accounting Firm. | |
• | Consolidated Financial Statements |
• | Consolidated Income Statements for the years ended 2010, 2009 and 2008. |
• | Consolidated Statements of Comprehensive Income for the years ended December 31, 2010, 2009 and 2008. | |
• | Consolidated Statements of Financial Position as of December 31, 2010 and 2009. | |
• | Consolidated Statements of Changes in Equity for the years ended December 31, 2010, 2009 and 2008. | |
• | Consolidated Statements of Cash Flows for the years ended December 31, 2010, 2009 and 2008. | |
• | Notes to the Consolidated Financial Statements. |
1 | Articles of Incorporation (Satzung) of SAP AG, as amended to date (English translation). | |||
2 | .1 | Form of global share certificate for ordinary shares (English translation).(1) | ||
Certain instruments which define rights of holders of long-term debt of SAP AG and its subsidiaries are not being filed because the total amount of securities authorized under each such instrument does not exceed 10% of the total consolidated assets of SAP AG and its subsidiaries. SAP AG and its subsidiaries hereby agree to furnish a copy of each such instrument to the Securities and Exchange Commission upon request. | ||||
4 | .1.2 | Amended and Restated Deposit Agreement dated as of November 25, 2009 among SAP AG, Deutsche Bank Trust Company Americas as Depositary, and all owners and holders from time to time of American Depositary Receipts issued thereunder, including the form of American Depositary Receipts.(2) | ||
4 | .7 | Merger Agreement dated May 12, 2010 by and among SAP America, Inc., Sheffield Acquisition Corp. and Sybase, Inc.(3) | ||
8 | For a list of our subsidiaries, associates and equity investments, see Note (34) to our Consolidated Financial Statements in “Item 18. Financial Statements”. | |||
12 | .1 | Certification of Bill McDermott, Co-Chief Executive Officer, required byRule 13a-14(a) orRule 15d-14(a). | ||
12 | .2 | Certification of Jim Hagemann Snabe, Co-Chief Executive Officer, required byRule 13a-14(a) orRule 15d-14(a). | ||
12 | .3 | Certification of Werner Brandt, Chief Financial Officer, required byRule 13a-14(a) orRule 15d-14(a). |
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13 | .1 | Certification of Bill McDermott, Co-Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
13 | .2 | Certification of Jim Hagemann Snabe, Co-Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
13 | .3 | Certification of Werner Brandt, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
15 | Consent of Independent Registered Public Accounting Firm. |
(1) | Incorporated by reference to Exhibit 2.1 of SAP AG’s Annual Report onForm 20-F filed on March 22, 2006. | |
(2) | Incorporated by reference to Exhibit 99(A) of Post Effective Amendment #1 to SAP AG’s Registration Statement onForm F-6 filed on November 25, 2009. | |
(3) | Incorporated by reference to Exhibit 2.1 to Sybase, Inc.’s Current Report onForm 8-K filed on May 13, 2010. |
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By: /s/ | BILL MCDERMOTT |
By: /s/ | JIM HAGEMANN SNABE |
By: /s/ | WERNER BRANDT |
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Consolidated Financial Statements: | ||||
F-3 | ||||
F-4 | ||||
F-5 | ||||
F-6 | ||||
F-7 | ||||
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for the years ended December 31,
(Unaudited) | ||||||||||||||||||||
Note | 2010(1) | 2010 | 2009 | 2008 | ||||||||||||||||
US$ | € | € | € | |||||||||||||||||
millions, unless otherwise stated | ||||||||||||||||||||
Software revenue | 4,332 | 3,265 | 2,607 | 3,606 | ||||||||||||||||
Support revenue | 8,138 | 6,133 | 5,285 | 4,602 | ||||||||||||||||
Subscription and other software-related service revenue | 525 | 396 | 306 | 258 | ||||||||||||||||
Software and software-related service revenue | 12,996 | 9,794 | 8,198 | 8,466 | ||||||||||||||||
Consulting revenue | 2,915 | 2,197 | 2,074 | 2,498 | ||||||||||||||||
Other service revenue | 628 | 473 | 400 | 611 | ||||||||||||||||
Professional services and other service revenue | 3,543 | 2,670 | 2,474 | 3,109 | ||||||||||||||||
Total revenue | (5 | ) | 16,538 | 12,464 | 10,672 | 11,575 | ||||||||||||||
Cost of software and software-related services | (2,419 | ) | (1,823 | ) | (1,658 | ) | (1,672 | ) | ||||||||||||
Cost of professional services and other services | (2,748 | ) | (2,071 | ) | (1,851 | ) | (2,285 | ) | ||||||||||||
Research and development | (2,294 | ) | (1,729 | ) | (1,591 | ) | (1,627 | ) | ||||||||||||
Sales and marketing | (3,510 | ) | (2,645 | ) | (2,199 | ) | (2,546 | ) | ||||||||||||
General and administration | (844 | ) | (636 | ) | (564 | ) | (624 | ) | ||||||||||||
Restructuring | (6 | ) | 4 | 3 | (198 | ) | (60 | ) | ||||||||||||
TomorrowNow litigation | (24 | ) | (1,302 | ) | (981 | ) | (56 | ) | (71 | ) | ||||||||||
Other operating income, net | (7 | ) | 12 | 9 | 33 | 11 | ||||||||||||||
Total operating expenses | (8 | ) | (13,100 | ) | (9,873 | ) | (8,084 | ) | (8,874 | ) | ||||||||||
Operating profit | 3,438 | 2,591 | 2,588 | 2,701 | ||||||||||||||||
Other non-operating expense, net | (9 | ) | (247 | ) | (186 | ) | (73 | ) | (27 | ) | ||||||||||
Finance income | 97 | 73 | 37 | 98 | ||||||||||||||||
Finance costs TomorrowNow litigation | (24 | ) | (16 | ) | (12 | ) | 0 | 0 | ||||||||||||
Other finance costs | (170 | ) | (128 | ) | (117 | ) | (148 | ) | ||||||||||||
Finance costs | (186 | ) | (140 | ) | (117 | ) | (148 | ) | ||||||||||||
Finance income, net | (10 | ) | (89 | ) | (67 | ) | (80 | ) | (50 | ) | ||||||||||
Profit before tax | 3,102 | 2,338 | 2,435 | 2,624 | ||||||||||||||||
Income tax expense TomorrowNow litigation | 500 | 377 | 20 | 26 | ||||||||||||||||
Other income tax expense | (1,197 | ) | (902 | ) | (705 | ) | (802 | ) | ||||||||||||
Income tax expense | (11 | ) | (697 | ) | (525 | ) | (685 | ) | (776 | ) | ||||||||||
Profit after tax | 2,406 | 1,813 | 1,750 | 1,848 | ||||||||||||||||
— Profit attributable to noncontrolling interests | 3 | 2 | 2 | 1 | ||||||||||||||||
— Profit attributable to owners of parent | 2,403 | 1,811 | 1,748 | 1,847 | ||||||||||||||||
Basic earnings per share, in € | (12 | ) | 2.02 | 1.52 | 1.47 | 1.55 | ||||||||||||||
Diluted earnings per share, in € | (12 | ) | 2.02 | 1.52 | 1.47 | 1.55 |
(1) | The 2010 figures have been translated solely for the convenience of the reader at an exchange rate of US$1.3269 to €1.00, the Noon Buying Rate certified by the Federal Reserve Bank of New York on December 30, 2010. |
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Note | 2010 | 2009 | 2008 | |||||||||||||
€ millions | ||||||||||||||||
Profit after tax | 1,813 | 1,750 | 1,848 | |||||||||||||
Gains (losses) on exchange differences on translation, before tax | 193 | 76 | (63 | ) | ||||||||||||
Reclassification adjustments on exchange differences on translation, before tax | 0 | (2 | ) | 0 | ||||||||||||
Exchange differences on translation | 193 | 74 | (63 | ) | ||||||||||||
Gains (losses) on remeasuringavailable-for-sale financial assets, before tax | (27 | ) | 5 | 15 | 1 | |||||||||||
Reclassification adjustments onavailable-for-sale financial assets, before tax | (27 | ) | (2 | ) | 0 | (3 | ) | |||||||||
Available-for-sale financial assets | (27 | ) | 3 | 15 | (2 | ) | ||||||||||
Gains (losses) on cash flow hedges, before tax | (26 | ) | (88 | ) | (41 | ) | (15 | ) | ||||||||
Reclassification adjustments on cash flow hedges, before tax | (26 | ) | 67 | 84 | (55 | ) | ||||||||||
Cash flow hedges | (26 | ) | (21 | ) | 43 | (70 | ) | |||||||||
Actuarial gains (losses) on defined benefit plans, before tax | (19 | ) | (39 | ) | (6 | ) | (54 | ) | ||||||||
Other comprehensive income, before tax | 136 | 126 | (189 | ) | ||||||||||||
Income tax relating to components of other comprehensive income | (11 | ) | 18 | (12 | ) | 39 | ||||||||||
Other comprehensive income, after tax | 154 | 114 | (150 | ) | ||||||||||||
Total comprehensive income | 1,967 | 1,864 | 1,698 | |||||||||||||
- Profit attributable to non-controlling interests | 2 | 2 | 1 | |||||||||||||
- Profit attributable to owners of parent | 1,965 | 1,862 | 1,697 |
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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION OF SAP GROUP
as at December 31,
(Unaudited) | ||||||||||||||||
Note | 2010(1) | 2010 | 2009 | |||||||||||||
US$ | € | € | ||||||||||||||
millions | ||||||||||||||||
Cash and cash equivalents | 4,668 | 3,518 | 1,884 | |||||||||||||
Other financial assets | (13 | ) | 210 | 158 | 486 | |||||||||||
Trade and other receivables | (14 | ) | 4,112 | 3,099 | 2,546 | |||||||||||
Other non-financial assets | (15 | ) | 240 | 181 | 147 | |||||||||||
Tax assets | (11 | ) | 248 | 187 | 192 | |||||||||||
Total current assets | 9,478 | 7,143 | 5,255 | |||||||||||||
Goodwill | (16 | ) | 11,187 | 8,431 | 4,994 | |||||||||||
Intangible assets | (16 | ) | 3,153 | 2,376 | 894 | |||||||||||
Property, plant, and equipment | (17 | ) | 1,923 | 1,449 | 1,371 | |||||||||||
Other financial assets | (13 | ) | 630 | 475 | 284 | |||||||||||
Trade and other receivables | (14 | ) | 103 | 78 | 52 | |||||||||||
Other non-financial assets | (15 | ) | 41 | 31 | 35 | |||||||||||
Tax assets | (11 | ) | 162 | 122 | 91 | |||||||||||
Deferred tax assets | (11 | ) | 977 | 736 | 398 | |||||||||||
Total non-current assets | 18,176 | 13,698 | 8,119 | |||||||||||||
Total assets | 27,654 | 20,841 | 13,374 | |||||||||||||
Trade and other payables | (18 | ) | 1,223 | 922 | 638 | |||||||||||
Tax liabilities | (11 | ) | 218 | 164 | 125 | |||||||||||
Financial liabilities | (18 | ) | 188 | 142 | 146 | |||||||||||
Other non-financial liabilities | (18 | ) | 2,290 | 1,726 | 1,577 | |||||||||||
Provision TomorrowNow litigation | (24 | ) | 1,323 | 997 | 93 | |||||||||||
Other provisions | 381 | 287 | 239 | |||||||||||||
Provisions | (19 | ) | 1,704 | 1,284 | 332 | |||||||||||
Deferred income | (20 | ) | 1,209 | 911 | 598 | |||||||||||
Total current liabilities | 6,832 | 5,149 | 3,416 | |||||||||||||
Trade and other payables | (18 | ) | 40 | 30 | 35 | |||||||||||
Tax liabilities | (11 | ) | 492 | 371 | 239 | |||||||||||
Financial liabilities | (18 | ) | 5,903 | 4,449 | 729 | |||||||||||
Other non-financial liabilities | (18 | ) | 113 | 85 | 12 | |||||||||||
Provisions | (19 | ) | 387 | 292 | 198 | |||||||||||
Deferred tax liabilities | (11 | ) | 767 | 578 | 190 | |||||||||||
Deferred income | (20 | ) | 84 | 63 | 64 | |||||||||||
Total non-current liabilities | 7,786 | 5,868 | 1,467 | |||||||||||||
Total liabilities | 14,618 | 11,017 | 4,883 | |||||||||||||
Issued capital | 1,628 | 1,227 | 1,226 | |||||||||||||
Share premium | 447 | 337 | 317 | |||||||||||||
Retained earnings | 12,960 | 9,767 | 8,571 | |||||||||||||
Other components of equity | (188 | ) | (142 | ) | (317 | ) | ||||||||||
Treasury shares | (1,834 | ) | (1,382 | ) | (1,320 | ) | ||||||||||
Equity attributable to owners of parent | 13,013 | 9,807 | 8,477 | |||||||||||||
Non-controlling interests | 23 | 17 | 14 | |||||||||||||
Total equity | (21 | ) | 13,035 | 9,824 | 8,491 | |||||||||||
Equity and liabilities | 27,654 | 20,841 | 13,374 |
(1) | The 2010 figures have been translated solely for the convenience of the reader at an exchange rate of US$1.3269 to €1.00, the Noon Buying Rate certified by the Federal Reserve Bank of New York on December 30, 2010. |
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CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY OF SAP GROUP
as at December 31,
Other Components of Equity | ||||||||||||||||||||||||||||||||||||||||
Available- | Equity | |||||||||||||||||||||||||||||||||||||||
for-Sale | Cash | Attributable | Non- | |||||||||||||||||||||||||||||||||||||
Issued | Share | Retained | Exchange | Financial | Flow | Treasury | to Owners of | Controlling | Total | |||||||||||||||||||||||||||||||
Capital | Premium | Earnings | Differences | Assets | Hedges | Shares | Parent | Interests | Equity | |||||||||||||||||||||||||||||||
€ millions | ||||||||||||||||||||||||||||||||||||||||
January 1, 2008 | 1,246 | 347 | 6,925 | (330 | ) | 1 | 10 | (1,734 | ) | 6,465 | 1 | 6,466 | ||||||||||||||||||||||||||||
Profit after tax | 1,847 | 1,847 | 1 | 1,848 | ||||||||||||||||||||||||||||||||||||
Other comprehensive income after tax | (32 | ) | (63 | ) | (2 | ) | (53 | ) | (150 | ) | (150 | ) | ||||||||||||||||||||||||||||
Dividends | (594 | ) | (594 | ) | (594 | ) | ||||||||||||||||||||||||||||||||||
Issuance of shares under share-based payments programs | 1 | 12 | 13 | 13 | ||||||||||||||||||||||||||||||||||||
Purchase of treasury shares | (487 | ) | (487 | ) | (487 | ) | ||||||||||||||||||||||||||||||||||
Cancellation of treasury shares | (21 | ) | (723 | ) | 744 | |||||||||||||||||||||||||||||||||||
Reissuance of treasury shares under share-based payments programs | (39 | ) | 115 | 76 | 76 | |||||||||||||||||||||||||||||||||||
Other | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||
December 31, 2008 | 1,226 | 320 | 7,422 | (393 | ) | (1 | ) | (43 | ) | (1,362 | ) | 7,169 | 2 | 7,171 | ||||||||||||||||||||||||||
Profit after tax | 1,748 | 1,748 | 2 | 1,750 | ||||||||||||||||||||||||||||||||||||
Other comprehensive income after tax | (6 | ) | 74 | 14 | 32 | 114 | 114 | |||||||||||||||||||||||||||||||||
Dividends | (594 | ) | (594 | ) | (594 | ) | ||||||||||||||||||||||||||||||||||
Issuance of shares under share-based payments programs | 5 | 5 | 5 | |||||||||||||||||||||||||||||||||||||
Reissuance of treasury shares under share-based payments programs | (8 | ) | 42 | 34 | 34 | |||||||||||||||||||||||||||||||||||
Addition of non-controlling interests | 10 | 10 | ||||||||||||||||||||||||||||||||||||||
Other | 1 | 1 | 1 | |||||||||||||||||||||||||||||||||||||
December 31, 2009 | 1,226 | 317 | 8,571 | (319 | ) | 13 | (11 | ) | (1,320 | ) | 8,477 | 14 | 8,491 | |||||||||||||||||||||||||||
Profit after tax | 1,811 | 1,811 | 2 | 1,813 | ||||||||||||||||||||||||||||||||||||
Other comprehensive income after tax | (21 | ) | 188 | 3 | (16 | ) | 154 | 154 | ||||||||||||||||||||||||||||||||
Dividends | (594 | ) | (594 | ) | (594 | ) | ||||||||||||||||||||||||||||||||||
Issuance of shares under share-based payments programs | 1 | 23 | 24 | 24 | ||||||||||||||||||||||||||||||||||||
Purchase of treasury shares | (220 | ) | (220 | ) | (220 | ) | ||||||||||||||||||||||||||||||||||
Reissuance of treasury shares under share-based payments programs | (3 | ) | 158 | 155 | 155 | |||||||||||||||||||||||||||||||||||
Other | 1 | 1 | ||||||||||||||||||||||||||||||||||||||
December 31, 2010 | 1,227 | 337 | 9,767 | (131 | ) | 16 | (27 | ) | (1,382 | ) | 9,807 | 17 | 9,824 |
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CONSOLIDATED STATEMENTS OF CASH FLOWS OF SAP GROUP
as at December 31,
(Unaudited) | ||||||||||||||||||||
Note | 2010(1) | 2010 | 2009 | 2008 | ||||||||||||||||
US$ | € | € | € | |||||||||||||||||
millions | ||||||||||||||||||||
Profit after tax | 2,406 | 1,813 | 1,750 | 1,848 | ||||||||||||||||
Adjustments to reconcile profit after tax to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 709 | 534 | 499 | 539 | ||||||||||||||||
Income tax expense | (11 | ) | 697 | 525 | 685 | 776 | ||||||||||||||
Finance income, net | (10 | ) | 89 | 67 | 80 | 50 | ||||||||||||||
Gains/losses on disposals of non-current assets | (7 | ) | (4 | ) | (3 | ) | (11 | ) | 11 | |||||||||||
Decrease/increase in sales and bad debt allowances on trade receivables | (65 | ) | (49 | ) | 64 | 76 | ||||||||||||||
Other adjustments for non-cash items | 42 | 32 | 14 | 52 | ||||||||||||||||
Decrease/increase in trade receivables | (163 | ) | (123 | ) | 593 | (48 | ) | |||||||||||||
Decrease/increase in other assets | (149 | ) | (112 | ) | 205 | (12 | ) | |||||||||||||
Decrease/increase in trade payables, provisions and other liabilities | 1,481 | 1,116 | (124 | ) | (267 | ) | ||||||||||||||
Decrease/increase in deferred income | 88 | 66 | 48 | 61 | ||||||||||||||||
Cashoutflows due to TomorrowNow litigation | (24 | ) | (135 | ) | (102 | ) | (19 | ) | (13 | ) | ||||||||||
Interest paid | (88 | ) | (66 | ) | (69 | ) | (105 | ) | ||||||||||||
Interest received | 69 | 52 | 22 | 72 | ||||||||||||||||
Income taxes paid, net of refunds | (1,085 | ) | (818 | ) | (722 | ) | (882 | ) | ||||||||||||
Net cash flows from operating activities | 3,890 | 2,932 | 3,015 | 2,158 | ||||||||||||||||
Business combinations, net of cash and cash equivalents acquired | (4 | ) | (5,565 | ) | (4,194 | ) | (73 | ) | (3,773 | ) | ||||||||||
Repayment of acquirees’ debt in business combinations | 0 | 0 | 0 | (450 | ) | |||||||||||||||
Purchase of intangible assets and property, plant, and equipment | (443 | ) | (334 | ) | (225 | ) | (339 | ) | ||||||||||||
Proceeds from sales of intangible assets or property, plant and equipment | 58 | 44 | 45 | 44 | ||||||||||||||||
Cash transferred to restricted cash | 0 | 0 | 0 | (448 | ) | |||||||||||||||
Use of restricted cash | 0 | 0 | 0 | 1,001 | ||||||||||||||||
Purchase of equity or debt instruments of other entities | (1,117 | ) | (842 | ) | (1,073 | ) | (396 | ) | ||||||||||||
Proceeds from sales of equity or debt instruments of other entities | 1,767 | 1,332 | 1,027 | 595 | ||||||||||||||||
Net cash flows from investing activities | (5,300 | ) | (3,994 | ) | (299 | ) | (3,766 | ) | ||||||||||||
Dividends paid | (22 | ) | (788 | ) | (594 | ) | (594 | ) | (594 | ) | ||||||||||
Purchase of treasury shares | (22 | ) | (292 | ) | (220 | ) | 0 | (487 | ) | |||||||||||
Proceeds from reissuance of treasury shares | 169 | 127 | 24 | 85 | ||||||||||||||||
Proceeds from issuing shares (share-based compensation) | 31 | 23 | 6 | 20 | ||||||||||||||||
Proceeds from borrowings | 7,139 | 5,380 | 697 | 3,859 | ||||||||||||||||
Repayments of borrowings | (2,914 | ) | (2,196 | ) | (2,303 | ) | (1,571 | ) | ||||||||||||
Purchase of equity-based derivative instruments | (19 | ) | (14 | ) | 0 | (55 | ) | |||||||||||||
Proceeds from the exercise of equity-based derivative financial instruments | 5 | 4 | 4 | 24 | ||||||||||||||||
Net cash flows from financing activities | 3,331 | 2,510 | (2,166 | ) | 1,281 | |||||||||||||||
Effect of foreign currency exchange rates on cash and cash equivalents | 247 | 186 | 54 | (1 | ) | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | 2,168 | 1,634 | 604 | (328 | ) | |||||||||||||||
Cash and cash equivalents at the beginning of the period | (22 | ) | 2,500 | 1,884 | 1,280 | 1,608 | ||||||||||||||
Cash and cash equivalents at the end of the period | (22 | ) | 4,668 | 3,518 | 1,884 | 1,280 |
(1) | The 2010 figures have been translated solely for the convenience of the reader at an exchange rate of US$1.3269 to €1.00, the Noon Buying Rate certified by the Federal Reserve Bank of New York on December 30, 2010. |
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(1) | GENERAL INFORMATION ABOUT CONSOLIDATED FINANCIAL STATEMENTS |
(2) | SCOPE OF CONSOLIDATION |
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(3) | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
(3a) | Bases of Measurement |
• | Derivative financial instruments,available-for-sale financial assets (except for investments in certain equity instruments without a quoted market price), and liabilities for cash-settled share-based payment arrangements are measured at fair value. | |
• | Foreign exchange receivables and payables are translated at period-end exchange rates. | |
• | Pensions are measured according to IAS 19 Employee Benefits (IAS 19) as described in Note (19a). |
(3b) | Relevant Accounting Policies |
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• | Whether the arrangement involves significant production, modification, or customization of the software, and | |
• | Whether the services are not available from third-party vendors and are therefore deemed essential to the software. |
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• | The development cost can be measured reliably. | |
• | The product is technically and commercially feasible. | |
• | Future economic benefits are probable. | |
• | We intend to complete development and market the product. |
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• | Currency effects arising from the translation of the financial statements of our foreign operations as well as the currency effects from intercompany long-term monetary items for which settlement is neither planned nor likely to occur in the foreseeable future. | |
• | Unrealized gains and losses onavailable-for-sale financial assets. | |
• | Gains and losses on cash flow hedges comprising the net change in fair value |
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of the effective portion of the respective cash flow hedges that have not yet impacted profit or loss. |
• | Loans and receivables: Loans and receivables are non-derivative financial assets with fixed or determinable payments that are neither quoted in an active market nor intended to be sold in the near term. This category comprises trade receivables, receivables and loans included in other financial assets, and cash and cash equivalents. We carry loans and receivables at amortized cost less impairment losses. Interest income from items assigned to this category is determined using the effective interest method if the time value of money is material. For further information on trade receivables see the Trade and Other Receivables section. | |
• | Available-for-sale financial assets:Available-for-sale financial assets are non-derivative financial assets that are not assigned to either of the two other categories and mainly include equity investments and debt investments. If readily determinable from market data,available-for-sale financial assets are measured at fair value, with changes in fair value being reported net of tax in other components of equity. Fair value changes are not recognized in profit or loss until the assets are sold or impaired.Available-for-sale financial assets for which no market price is available and whose fair value cannot be reliably estimated in the absence of an active market are carried at cost less impairment losses. | |
• | Financial assets at fair value through profit or loss: Financial assets at fair value through profit or loss only comprise those financial assets that are |
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held for trading, as we do not designate financial assets at fair value through profit or loss on initial recognition. This category solely contains embedded and freestanding derivatives with positive fair values, except where hedge accounting is applied. All changes in the fair value of financial assets in this category are immediately recognized in profit or loss. For more information about derivatives, see the Derivatives section. |
• | The economic characteristics and risks of the host contract and the embedded derivative are not closely related. |
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• | A separate instrument with the same terms as the embedded derivative would meet the definition of a derivative. | |
• | The combined instrument is not measured at fair value through profit or loss. |
• | First, we consider the financial solvency of specific customers and record an allowance for specific customer balances when we believe it is probable that we will not collect the amount due according to the contractual terms of the arrangement. | |
• | Second, we evaluate homogenous portfolios of trade receivables according to their default risk primarily based on the age of the receivable and historical loss experience, but also taking into |
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consideration general market factors that might impact our trade receivable portfolio. We record a general bad debt allowance to record impairment losses for a portfolio of trade receivables when we believe that the age of the receivables indicates that it is probable that a loss has occurred and we will not collect some or all of the amounts due. |
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• | Financial liabilities at fair value through profit or loss only comprise those financial liabilities that are held for trading, as we do not designate financial liabilities at fair value through profit or loss on initial recognition. This category solely contains embedded and other derivatives with negative fair values, except where hedge accounting is applied. All changes in the fair value of financial liabilities in this category are immediately recognized in profit or loss. For more information about derivatives, see the Derivatives section. | |
• | Financial liabilities at amortized cost include all non-derivative financial liabilities not quoted in an active market which are measured at amortized cost using the effective interest method. |
• | It is more likely than not that we have a legal or constructive obligation to third parties as a result of a past event. | |
• | The amount can be reasonably estimated. | |
• | It is probable that there will be an outflow of future economic benefits to settle the obligation, while there may be uncertainty about the timing or amount of the future expenditure required in the settlement. |
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(3c) | Management Judgments and Sources of Estimation Uncertainty |
• | Revenue recognition | |
• | Valuation of trade receivables | |
• | Accounting for share-based compensation | |
• | Accounting for income tax | |
• | Accounting for business combinations | |
• | Subsequent accounting for goodwill and other intangibles | |
• | Accounting for legal contingencies | |
• | Recognition of internally generated intangible assets from development |
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• | Which arrangements with the same customer are to be accounted for as one arrangement | |
• | Which deliverables under one arrangement are to be accounted for separately | |
• | How to allocate the total arrangement fee to the individual elements of one arrangement |
• | Whether company-specific evidence of fair value can be demonstrated for the undelivered elements of a software arrangement | |
• | The approaches used to demonstrate company-specific evidence of fair value |
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• | Fair values assigned to assets subject to depreciation and amortization affects the amounts of depreciation and amortization to be recorded in operating profit in the periods following the acquisition. | |
• | Subsequent negative changes in the estimated fair values of assets may result in additional expense from impairment charges. | |
• | Subsequent changes in the estimated fair values of liabilities and provisions may result in additional expense (if increasing the estimated fair value) or additional income (if decreasing the estimated fair value). |
• | The determination of the useful life of an intangible asset as this determination is based on our estimates regarding the period over which the intangible asset is expected to produce economic benefits to us. | |
• | The determination of the amortization method as IFRS requires the straight-line method to be used unless we can reliably determine the pattern in which the asset’s future economic benefits are expected to be consumed by us. |
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• | The determination whether an obligation exists | |
• | The determination of the probability of outflow of economic benefits | |
• | The determination whether the amount of obligation is estimable | |
• | The estimate of the obligation |
• | Determining whether activities should be considered research activities or development activities. | |
• | Determining whether the conditions for recognizing an intangible asset are met requires assumptions about future market conditions, customer demand and other developments. | |
• | The term “technical feasibility” is not defined in IFRS, and therefore determining whether the completion of an asset is technically feasible requires judgment and a company-specific approach. |
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• | Determining the future ability to use or sell the intangible asset arising from the development and the determination of the probability of future benefits from sale or use. | |
• | Determining whether a cost is directly or indirectly attributable to an intangible asset and whether a cost is necessary for completing a development. |
(3d) | New Accounting Standards Adopted in the Current Period |
(3e) | New Accounting Standards Not Yet Adopted |
• | IFRS 9 Financial Instruments, which becomes mandatory for the Group’s 2013 consolidated financial statements and is expected to impact the classification and measurement of financial assets. The extent of the impact has not been determined. | |
• | Amendment to IFRS 7 Financial Instruments: Disclosures — Amendments enhancing disclosures about transfers of financial assets (IFRS 7), which becomes mandatory for the Group’s 2012 consolidated financial statements and might result in additional disclosures. |
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(4) | BUSINESS COMBINATIONS |
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• | Additional depreciation and amortization that would have been charged assuming the fair value adjustment to property, plant, and equipment and intangible assets had been applied from January 1, 2010. | |
• | The impact of deferred revenue write-downs on maintenance revenue on a full-year basis. | |
• | The borrowing costs on the funding levels and debt/equity position of the company after the business combination. | |
• | Related tax effects. |
(5) | REVENUE |
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(6) | RESTRUCTURING |
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(7) | OTHER OPERATING INCOME, NET |
(8) | EMPLOYEE BENEFITS EXPENSE AND HEADCOUNT |
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December 31, 2010 | December 31, 2009 | December 31, 2008 | ||||||||||||||||||||||||||||||||||||||||||||||
Asia | Asia | Asia | ||||||||||||||||||||||||||||||||||||||||||||||
Pacific | Pacific | Pacific | ||||||||||||||||||||||||||||||||||||||||||||||
Full-time equivalents | EMEA(1) | Americas | Japan | Total | EMEA(1) | Americas | Japan | Total | EMEA(1) | Americas | Japan | Total | ||||||||||||||||||||||||||||||||||||
Software and software-related services | 3,804 | 1,827 | 2,254 | 7,885 | 3,227 | 1,276 | 1,919 | 6,422 | 3,269 | 1,306 | 1,891 | 6,466 | ||||||||||||||||||||||||||||||||||||
Professional services and other services | 6,787 | 3,955 | 2,410 | 13,152 | 6,635 | 3,473 | 2,240 | 12,348 | 7,326 | 4,142 | 2,583 | 14,051 | ||||||||||||||||||||||||||||||||||||
Research and development | 8,617 | 3,154 | 4,113 | 15,884 | 8,525 | 2,534 | 3,755 | 14,814 | 8,687 | 2,767 | 4,094 | 15,548 | ||||||||||||||||||||||||||||||||||||
Sales and marketing | 4,593 | 4,214 | 2,180 | 10,987 | 4,202 | 3,559 | 1,752 | 9,513 | 4,645 | 4,014 | 2,042 | 10,701 | ||||||||||||||||||||||||||||||||||||
General and administration | 2,053 | 1,005 | 518 | 3,576 | 1,919 | 724 | 408 | 3,051 | 1,996 | 788 | 459 | 3,243 | ||||||||||||||||||||||||||||||||||||
Infrastructure | 1,135 | 628 | 266 | 2,029 | 854 | 408 | 174 | 1,436 | 905 | 445 | 185 | 1,535 | ||||||||||||||||||||||||||||||||||||
SAP Group (December 31) | 26,989 | 14,783 | 11,741 | 53,513 | 25,362 | 11,974 | 10,248 | 47,584 | 26,828 | 13,462 | 11,254 | 51,544 | ||||||||||||||||||||||||||||||||||||
Thereof Sybase | 813 | 1,866 | 1,047 | 3,726 | ||||||||||||||||||||||||||||||||||||||||||||
SAP Group (months’ end average) | 25,929 | 13,164 | 10,877 | 49,970 | 25,927 | 12,288 | 10,554 | 48,769 | 26,561 | 13,872 | 11,128 | 51,561 |
(1) | Europe, Middle East, Africa |
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(9) | OTHER NON-OPERATING EXPENSE, NET |
(10) | FINANCE INCOME, NET |
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(11) | INCOME TAX |
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(12) | EARNINGS PER SHARE |
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€ millions, unless otherwise stated | 2010 | 2009 | 2008 | |||||||||
Profit attributable to owners of parent | 1,811 | 1,748 | 1,847 | |||||||||
Issued ordinary shares | 1,226 | 1,226 | 1,239 | |||||||||
Effect of treasury shares | −38 | −38 | −49 | |||||||||
Weighted average shares — basic(1) | 1,188 | 1,188 | 1,190 | |||||||||
Dilutive effect of stock options(1) | 1 | 1 | 1 | |||||||||
Weighted average shares — diluted(1) | 1,189 | 1,189 | 1,191 | |||||||||
Basic earnings per share, in € | 1.52 | 1.47 | 1.55 | |||||||||
Diluted earnings per share, in € | 1.52 | 1.47 | 1.55 | |||||||||
(1) | Number of shares in million |
(13) | OTHER FINANCIAL ASSETS |
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(14) | TRADE AND OTHER RECEIVABLES |
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(15) | OTHER NON-FINANCIAL ASSETS |
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(17) | PROPERTY, PLANT, AND EQUIPMENT |
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(18) | TRADE AND OTHER PAYABLES, FINANCIAL LIABILITIES, AND OTHER NON-FINANCIAL LIABILITIES |
(18a) | Trade and Other Payables |
(18b) | Financial Liabilities |
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Effective | Nominal Volume in | Balance on | Balance on | |||||||||||||||||
Interest | Respective Currency | 12/31/2010 | 12/31/2009 | |||||||||||||||||
Maturity | Coupon Rate | Rate | on 12/31/2010 | in €million | in € million | |||||||||||||||
German promissory note | € 697 million | 696 | 697 | |||||||||||||||||
Tranche 1 — 2009/2012 | 2012 | 4,04% (fix) | 4.08 | % | € 63.5 million | |||||||||||||||
Tranche 2 — 2009/2012 | 2012 | 2,87% (variable) | 2.92 | % | € 359.5 million | |||||||||||||||
Tranche 3 — 2009/2014 | 2014 | 4,92% (fix) | 4.98 | % | € 86 million | |||||||||||||||
Tranche 4 — 2009/2014 | 2014 | 3,22% (variable) | 3.27 | % | € 158 million | |||||||||||||||
Tranche 5 — 2009/2014 | 2014 | 3,28% (variable) | 3.32 | % | € 30 million | |||||||||||||||
US private placement | US $500 million | 373 | 0 | |||||||||||||||||
Tranche 1 — 2010 | 2015 | 2,34% (fix) | 2.40 | % | US $300 million | |||||||||||||||
Tranche 2 — 2010 | 2017 | 2,95% (fix) | 3.03 | % | US $200 million | |||||||||||||||
Private placements | 1,069 | 697 | ||||||||||||||||||
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(18c) | Other Non-Financial Liabilities |
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(19a) | Pension Plans and Similar Obligations |
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Other Post- | ||||||||||||||||||||||||||||||||
Employment | ||||||||||||||||||||||||||||||||
Domestic Plans | Foreign Plans | Plans | Total | |||||||||||||||||||||||||||||
€ millions | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||||||||||
Change in benefit obligation | ||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | 346 | 314 | 343 | 306 | 20 | 18 | 709 | 638 | ||||||||||||||||||||||||
Service cost | −4 | −6 | 17 | 15 | 3 | 2 | 16 | 11 | ||||||||||||||||||||||||
Interest cost | 18 | 18 | 17 | 15 | 1 | 1 | 36 | 34 | ||||||||||||||||||||||||
Employee contributions | 46 | 35 | 4 | 4 | 0 | 0 | 50 | 39 | ||||||||||||||||||||||||
Actuarial loss(+)/gain(−) | 13 | −13 | 29 | 31 | 2 | 0 | 44 | 18 | ||||||||||||||||||||||||
Benefits paid | −4 | −2 | −17 | −21 | −1 | −1 | −22 | −24 | ||||||||||||||||||||||||
Business combinations | 1 | 0 | 4 | 2 | 4 | 0 | 9 | 2 | ||||||||||||||||||||||||
Curtailments/settlements | 0 | 0 | 0 | −1 | −4 | 0 | −4 | −1 | ||||||||||||||||||||||||
Past service cost | 0 | 0 | −3 | 0 | 0 | 0 | −3 | 0 | ||||||||||||||||||||||||
Foreign currency exchange rate changes | 0 | 0 | 45 | −8 | 0 | 0 | 45 | −8 | ||||||||||||||||||||||||
Benefit obligation at year-end | 416 | 346 | 439 | 343 | 25 | 20 | 880 | 709 | ||||||||||||||||||||||||
Thereof fully or partially funded plans | 416 | 346 | 404 | 317 | 12 | 8 | 832 | 671 | ||||||||||||||||||||||||
Thereof unfunded plans | 0 | 0 | 35 | 26 | 13 | 12 | 48 | 38 | ||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | 345 | 314 | 311 | 261 | 4 | 3 | 660 | 578 | ||||||||||||||||||||||||
Expected return on plan assets | 17 | 15 | 19 | 14 | 0 | 0 | 36 | 29 | ||||||||||||||||||||||||
Employer contributions | 1 | 1 | 31 | 29 | 5 | 2 | 37 | 32 | ||||||||||||||||||||||||
Employee contributions | 46 | 35 | 4 | 4 | 0 | 0 | 50 | 39 | ||||||||||||||||||||||||
Benefits paid | −4 | −2 | −17 | −21 | −1 | −1 | −22 | −24 | ||||||||||||||||||||||||
Business combinations | 0 | 0 | 2 | 2 | 0 | 0 | 2 | 2 | ||||||||||||||||||||||||
Settlements | 0 | 0 | 0 | 0 | −4 | 0 | −4 | 0 | ||||||||||||||||||||||||
Other changes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Actuarial loss(−)/gain(+) | 9 | −18 | −1 | 28 | 0 | 0 | 8 | 10 | ||||||||||||||||||||||||
Foreign currency exchange rate changes | 0 | 0 | 37 | −6 | 0 | 0 | 37 | −6 | ||||||||||||||||||||||||
Fair value of plan assets at year-end | 414 | 345 | 386 | 311 | 4 | 4 | 804 | 660 | ||||||||||||||||||||||||
Funded status at year-end | −2 | −1 | −53 | −32 | −21 | −16 | −76 | −49 | ||||||||||||||||||||||||
Amounts recognized in the Consolidated Statement of Financial Position: | ||||||||||||||||||||||||||||||||
Noncurrent pension assets | 0 | 0 | 2 | 2 | 0 | 0 | 2 | 2 | ||||||||||||||||||||||||
Accrued benefit liability (current) | 0 | 0 | −2 | −2 | 0 | 0 | −2 | −2 | ||||||||||||||||||||||||
Accrued benefit liability (non-current) | −2 | −1 | −53 | −32 | −21 | −16 | −76 | −49 | ||||||||||||||||||||||||
−2 | −1 | −53 | −32 | −21 | −16 | −76 | −49 | |||||||||||||||||||||||||
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Domestic Plans | Foreign Plans | Other Post-Employment Plans | Total | |||||||||||||||||||||||||||||||||||||||||||||
€ millions | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | ||||||||||||||||||||||||||||||||||||
Service cost | −4 | −6 | 1 | 17 | 15 | 38 | 3 | 2 | 2 | 16 | 11 | 41 | ||||||||||||||||||||||||||||||||||||
Interest cost | 18 | 18 | 15 | 17 | 15 | 14 | 1 | 1 | 1 | 36 | 34 | 30 | ||||||||||||||||||||||||||||||||||||
Expected return on plan assets | −17 | −15 | −14 | −19 | −14 | −21 | 0 | 0 | 0 | −36 | −29 | −35 | ||||||||||||||||||||||||||||||||||||
Curtailment | 0 | 0 | 0 | 0 | −1 | −9 | 0 | 0 | 0 | 0 | −1 | −9 | ||||||||||||||||||||||||||||||||||||
Past service cost | 0 | 0 | 0 | −3 | 0 | 0 | 0 | 0 | 0 | −3 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Total expense | −3 | −3 | 2 | 12 | 15 | 22 | 4 | 3 | 3 | 13 | 15 | 27 | ||||||||||||||||||||||||||||||||||||
Actual return on plan assets | 26 | −3 | 6 | 18 | 42 | −78 | 0 | 0 | 0 | 44 | 39 | −72 |
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Domestic Plans | Foreign Plans | Other Post-Employment Plans | Total | |||||||||||||||||||||||||||||||||||||||||||||
€ millions | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 | ||||||||||||||||||||||||||||||||||||
Beginning balance of actuarial gains(−) and losses(+) on defined benefit plans | −10 | −18 | −16 | 53 | 57 | 0 | −2 | −2 | −2 | 41 | 37 | −18 | ||||||||||||||||||||||||||||||||||||
Actuarial gains(−) and losses(+) on defined benefit plans recognized during the period | 4 | 5 | −2 | 30 | 3 | 54 | 2 | 0 | 0 | 36 | 8 | 52 | ||||||||||||||||||||||||||||||||||||
Other changes | 0 | 3 | 0 | 0 | −5 | 0 | 0 | 0 | 0 | 0 | −2 | 0 | ||||||||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | 0 | 0 | 0 | 3 | −2 | 3 | 0 | 0 | 0 | 3 | −2 | 3 | ||||||||||||||||||||||||||||||||||||
Ending balance of actuarial gains(−) and losses(+) on defined benefit plans | −6 | −10 | −18 | 86 | 53 | 57 | 0 | −2 | −2 | 80 | 41 | 37 |
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Domestic Plans | Foreign Plans | Other Post-Employment Plans | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
€ millions | 2010 | 2009 | 2008 | 2007 | 2006 | 2010 | 2009 | 2008 | 2007 | 2006 | 2010 | 2009 | 2008 | 2007 | 2006 | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined benefit obligation | 416 | 346 | 314 | 274 | 261 | 439 | 343 | 306 | 287 | 275 | 25 | 20 | 18 | 13 | 16 | 880 | 709 | 638 | 574 | 552 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liability experience adjustments | 13 | −13 | −10 | −37 | −17 | 29 | 31 | −45 | 0 | −5 | 2 | 0 | 0 | −1 | 1 | 44 | 18 | −55 | −38 | −21 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plan assets | 414 | 345 | 314 | 272 | 255 | 386 | 311 | 261 | 311 | 288 | 4 | 4 | 3 | 0 | 1 | 804 | 660 | 578 | 583 | 544 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset experience adjustments | 9 | −18 | −8 | −30 | −10 | −1 | 28 | −99 | −10 | 10 | 0 | 0 | 0 | 0 | 0 | 8 | 10 | −107 | −40 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Funded status | −2 | −1 | 0 | −2 | −6 | −53 | −32 | −45 | 24 | 13 | −21 | −16 | −15 | −13 | −15 | −76 | −49 | −60 | 9 | −8 |
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(19b) | Other Provisions |
Balance | Acqui- | Utili- | Currency | Balance | ||||||||||||||||||||||||||||
€ millions | 1/1/2010 | Addition | Accretion | sition | zation | Release | Impact | 12/31/2010 | ||||||||||||||||||||||||
Employee-related provisions | ||||||||||||||||||||||||||||||||
Provisions share-based compensation | 114 | 42 | 0 | 18 | −20 | −11 | 4 | 147 | ||||||||||||||||||||||||
Other employee-related provisions | 138 | 118 | 0 | 2 | −71 | −21 | 1 | 167 | ||||||||||||||||||||||||
Customer-related provisions | 35 | 119 | 0 | 0 | −59 | −47 | 2 | 50 | ||||||||||||||||||||||||
Restructuring provisions | ||||||||||||||||||||||||||||||||
Employee termination benefits | 16 | 1 | 0 | 0 | −14 | 0 | 1 | 4 | ||||||||||||||||||||||||
Facility-related exit liabilities | 28 | 6 | 1 | 0 | −17 | −11 | 3 | 10 | ||||||||||||||||||||||||
Litigation-related provisions | ||||||||||||||||||||||||||||||||
TomorrowNow litigation | 93 | 993 | 0 | 0 | −117 | 0 | 28 | 997 | ||||||||||||||||||||||||
Other litigation-related provisions | 30 | 40 | 0 | 16 | −34 | −16 | 4 | 40 | ||||||||||||||||||||||||
Other provisions | 25 | 15 | 1 | 52 | −8 | −2 | 0 | 83 | ||||||||||||||||||||||||
Total | 479 | 1,334 | 2 | 88 | −340 | −108 | 43 | 1,498 | ||||||||||||||||||||||||
Thereof current | 330 | 1,282 | ||||||||||||||||||||||||||||||
Thereof non-current | 149 | �� | 216 |
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(20) | DEFERRED INCOME |
(21) | TOTAL EQUITY |
• | Up to a total amount of €250 million through the issuance of new common shares in return for contributions in |
cash until June 7, 2015 (Authorized Capital Ia). The issuance is subject to the statutory subscription rights of existing shareholders. | ||
• | Up to a total amount of €250 million through the issuance of new common shares in return for contributions in cash or in kind until June 7, 2015 (Authorized Capital IIa). Subject to certain preconditions and the consent of the Supervisory Board, the Executive Board is authorized to exclude the shareholders’ statutory subscription rights. | |
• | Up to a total amount of €30 million through the issuance of new common |
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shares in return for contributions in cash or in kind until June 7, 2015 (Authorized Capital III). The new shares can only be used for share-based compensation (as employee shares). Shareholders’ subscription rights are excluded. |
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(23) | OTHER FINANCIAL COMMITMENTS AND CONTINGENT LIABILITIES |
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(24) | LITIGATION AND CLAIMS |
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(25) | FINANCIAL RISK FACTORS |
a) | Foreign Currency Exchange Rate Risk |
b) | Interest-Rate Risk |
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c) | Equity-Price Risk |
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Carrying | ||||||||||||||||||||||||||||
Amount | Contractual Cash Flows | |||||||||||||||||||||||||||
€ millions | 12/31/2010 | 2011 | 2012 | 2013 | 2014 | 2015 | Thereafter | |||||||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||||||||||
— Trade payables | −699 | −699 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
— Financial liabilities | −4,445 | −145 | −2,220 | −667 | −824 | −253 | −695 | |||||||||||||||||||||
Derivative financial liabilities and assets | ||||||||||||||||||||||||||||
— Derivative financial liabilities | ||||||||||||||||||||||||||||
Currency derivatives without designated hedge relationship | −109 | |||||||||||||||||||||||||||
— cash outflows | −883 | −9 | −9 | −9 | −9 | −42 | ||||||||||||||||||||||
— cash inflows | 852 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Currency derivatives with designated hedge relationship | −27 | |||||||||||||||||||||||||||
— cash outflows | −360 | −38 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
— cash inflows | 333 | 36 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Interest rate derivatives with designated hedge relationship | −10 | |||||||||||||||||||||||||||
— cash outflows | −12 | −9 | −5 | −3 | 0 | 0 | ||||||||||||||||||||||
— cash inflows | 5 | 4 | 2 | 1 | 0 | 0 | ||||||||||||||||||||||
— Derivative financial assets | ||||||||||||||||||||||||||||
Currency derivatives without designated hedge relationship | 80 | |||||||||||||||||||||||||||
— cash outflows | −4,502 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
— cash inflows | 4,590 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Currency derivatives with designated hedge relationship | 3 | |||||||||||||||||||||||||||
— cash outflows | −62 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
— cash inflows | 64 | 0 | 0 | 0 | 0 | 0 |
Carrying | ||||||||||||||||||||||||||||
Amount | Contractual Cash Flows | |||||||||||||||||||||||||||
€ millions | 12/31/2009 | 2010 | 2011 | 2012 | 2013 | 2014 | Thereafter | |||||||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||||||||||
— Trade payables | −479 | −479 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
— Financial liabilities | −749 | −60 | −26 | −441 | −11 | −281 | 0 | |||||||||||||||||||||
Derivative financial liabilities and assets | ||||||||||||||||||||||||||||
— Derivative financial liabilities | ||||||||||||||||||||||||||||
Currency derivatives without designated hedge relationship | −109 | |||||||||||||||||||||||||||
— cash outflows | −2,136 | −3 | −3 | −3 | −2 | −13 | ||||||||||||||||||||||
— cash inflows | 2,053 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Currency derivatives with designated hedge relationship | −12 | |||||||||||||||||||||||||||
— cash outflows | −384 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
— cash inflows | 371 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Interest rate derivatives with designated hedge relationship | −5 | |||||||||||||||||||||||||||
— cash outflows | −12 | −12 | −9 | −5 | −3 | 0 | ||||||||||||||||||||||
— cash inflows | 4 | 4 | 3 | 1 | 1 | 0 | ||||||||||||||||||||||
— Derivative financial assets | ||||||||||||||||||||||||||||
Currency derivatives without designated hedge relationship | 41 | |||||||||||||||||||||||||||
— cash outflows | −1,853 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
— cash inflows | 1,890 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Currency derivatives with designated hedge relationship | 3 | |||||||||||||||||||||||||||
— cash outflows | −160 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
— cash inflows | 163 | 0 | 0 | 0 | 0 | 0 |
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(26) | FINANCIAL RISK MANAGEMENT |
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• | Since the SAP Group’s entities generally operate in their functional currencies, the majority of our non-derivative monetary financial instruments, such as cash and cash equivalents, trade receivables, trade payables, loans to employees and third parties, bank liabilities, and other financial liabilities, are denominated in the respective entities’ functional currency. Thus, a foreign currency exchange rate risk in these transactions is nearly non-existent. In exceptional cases and limited economic environments, operating and financing transactions are denominated in currencies other than the functional currency, leading to a foreign currency |
exchange rate risk for the related monetary instruments. Where we hedge against currency impacts on cash flows, these foreign-currency-denominated financial instruments are economically converted into the functional currency by the use of forward exchange contracts or options. Therefore, fluctuations in foreign currency exchange rates neither have a significant impact on profit nor on other components of equity with regard to our non-derivative monetary financial instruments. | ||
• | Income or expenses recorded in conjunction with the non-derivative monetary financial instruments discussed above are mainly recognized in the relevant entity’s functional currency. Therefore, fluctuations in foreign currency exchange rates neither have a significant impact on profit nor on other components of equity in this regard. | |
• | Our free-standing derivatives designed for hedging foreign currency exchange rate risks almost completely balance the changes in the fair values of the hedged item attributable to exchange rate movements in the Consolidated Income Statements in the same period. As a consequence, the hedged items and the hedging instruments are not exposed to foreign currency exchange rate risks, and thereby have no effect on profit or other components of equity. |
• | Derivatives held within a designated cash-flow hedging relationship, and | |
• | Foreign currency embedded derivatives. |
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• | Changes in interest rates only affect non-derivative fixed-rate financial instruments if they are recognized at fair value. Therefore, we do not have a fair value risk in our non-derivative financial liabilities as we account for them at amortized cost. On December 31, 2010, we did not have non-derivative fixed-rate financial assets classified asavailable-for-sale. Therefore, an equity-related sensitivity calculation is not necessary. As our investment portfolio did not contain fixed-rate financial assets during 2010, the data at year-end is representative of the entire year of 2010. | |
• | Income or expenses recorded in conjunction with non-derivative financial instruments with variable interest rates are subject to interest rate risk if they are not hedged items in an effective hedging relationship. Since we have entered into interest rate payer swaps for the variable components of the SSD, we therefore have no significant interest-rate risk arising from our SSD and only take into consideration |
interest rate changes relating to our variable-interest-rate investments and acquisition term loan in the profit-related sensitivity calculation. |
With respect to the invested amounts, the data at year-end is not representative of the year as a whole. On average, our exposure to cash flow interest rate risk from investments in 2010 was based on investments of €776 million, with a range of exposure on investments from a high of €1.1 billion to a low of €371 million. The year-end exposure was €874 million. | ||
With respect to the financed amounts, the data at year-end is not representative of the year as a whole. Significant debt amounts from the acquisition term loan raised in connection with the acquisition of Sybase were refinanced in 2010. On average, our exposure to cash flow interest rate risk from financing activities in 2010 was based on interest-bearing liabilities of €711 million, with a range of exposure from a high of €2.74 billion to a low of €7 million. The year-end exposure was €1.1 billion. |
• | Due to the designation of interest rate payer swaps to a cash flow-hedge relationship, the interest rate changes affect the respective amounts recorded |
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in other components of equity. The movements related to the interest rate swaps’ variable leg are not reflected in the sensitivity calculation, as they offset the variable-interest-rate payments for the SSD. We therefore only consider interest rate sensitivity in discounting the interest rate swaps’ fixed leg cash flows in the equity-related sensitivity calculation for the interest rate swaps designated to be in a hedge relationship. |
With respect to the borrowing and related hedged amounts, the data at year-end is representative for the year as a whole. |
• | The gains/losses onavailable-for-sale financial assets positions in other components of equity. |
• | Finance income, net for our variable-interest-rate investments and financial debt. |
• | The effective portion of the interest rate cash-flow hedge in other components of equity. |
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(27) | ADDITIONAL FAIR VALUE DISCLOSURES ON FINANCIAL INSTRUMENTS |
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2010 | 2009 | |||||||||||||||||||||||||||||||||||||||||||||||||
Measurement categories | Measurement categories | |||||||||||||||||||||||||||||||||||||||||||||||||
Book | At | At | Fair | Not in | Book | At | At | Fair | Not in | |||||||||||||||||||||||||||||||||||||||||
Value | Amortized | At | Fair | Value | Scope of | Value | Amortized | At | Fair | Value | Scope of | |||||||||||||||||||||||||||||||||||||||
€ millions | Category | 12/31 | Cost | Cost | Value | 12/31 | IFRS 7 | 12/31 | Cost | Cost | Value | 12/31 | IFRS 7 | |||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | L&R | 3,518 | 3,518 | 3,518 | 1,884 | 1,884 | 1,884 | |||||||||||||||||||||||||||||||||||||||||||
Trade receivables | L&R | 3,177 | 3,031 | 3,031 | 146 | 2,598 | 2,508 | 2,508 | 90 | |||||||||||||||||||||||||||||||||||||||||
Other financial assets | 633 | 770 | ||||||||||||||||||||||||||||||||||||||||||||||||
Debt | L&R/AFS | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity | AFS/— | 79 | 28 | 28 | 40 | 62 | 25 | 25 | 27 | |||||||||||||||||||||||||||||||||||||||||
Other nonderivative financial assets | L&R | 188 | 188 | 182 | 499 | 499 | 91 | |||||||||||||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||
with hedging relationship | — | 3 | 3 | 3 | 3 | |||||||||||||||||||||||||||||||||||||||||||||
without hedging relationship | HFT | 113 | 113 | 63 | 63 | |||||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Trade payables | AC | −952 | −699 | −699 | −253 | −673 | −479 | −479 | −194 | |||||||||||||||||||||||||||||||||||||||||
Financial liabilities | −4,591 | −875 | ||||||||||||||||||||||||||||||||||||||||||||||||
Nonderivative financial liabilities | AC | −4,445 | −4,463 | −749 | −751 | |||||||||||||||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||
with hedging relationship | — | −37 | −37 | −17 | −17 | |||||||||||||||||||||||||||||||||||||||||||||
without hedging relationship | HFT | −109 | −109 | −109 | −109 | |||||||||||||||||||||||||||||||||||||||||||||
Aggregation according to IAS 39 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
at fair value through profit or loss | ||||||||||||||||||||||||||||||||||||||||||||||||||
held for trading | HFT | 113 | 113 | 113 | 63 | 63 | 63 | |||||||||||||||||||||||||||||||||||||||||||
available-for-sale | AFS | 107 | 79 | 28 | 28 | 87 | 62 | 25 | 25 | |||||||||||||||||||||||||||||||||||||||||
loans and receivables | L&R | 6,883 | 6,737 | 6,737 | 146 | 4,981 | 4,891 | 4,891 | 90 | |||||||||||||||||||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
at fair value through profit or loss | ||||||||||||||||||||||||||||||||||||||||||||||||||
held for trading | HFT | −109 | −109 | −109 | −109 | −109 | −109 | |||||||||||||||||||||||||||||||||||||||||||
at amortized cost | AC | −5,397 | −5,144 | −5,162 | −253 | −1,422 | −1,228 | −1,230 | −194 | |||||||||||||||||||||||||||||||||||||||||
Out of IAS 39 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Financial instruments related to employee benefit plans | 182 | 182 | 91 | 91 | ||||||||||||||||||||||||||||||||||||||||||||||
Associates | 40 | 40 | 27 | 27 | ||||||||||||||||||||||||||||||||||||||||||||||
Derivatives with hedging relationship | −34 | −34 | −34 | −14 | −14 | −14 |
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• | Level 1: Quoted prices in active markets for identical assets or liabilities. |
• | Available-for-sale debt and equity investments: The fair values of these marketable securities are based on quoted market prices as at December 31. |
• | Level 2: Inputs other than those that can be observed, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
• | Derivative financial instruments: The fair value of foreign exchange forward contracts is based on discounting the expected future cash flows over the respective remaining term of the contracts using the respective deposit interest rates and spot rates. The fair value of the derivatives entered into to hedge our share-based compensation programs are calculated considering risk-free interest rates, the remaining term of the derivatives, the dividend yields, the stock price and the volatility of our share. Fair values of our derivative interest-rate contracts are calculated by discounting the expected future cash flows by taking the prevailing market and future rates for the remaining term of the contracts as a basis. | |
• | Available-for-sale equity investments in public companies: Certain of our equity investments in public companies were restricted from being sold for a limited period. Therefore, fair value is determined based on quoted market prices as at December 31, deducting a discount for the disposal restriction based on the premium for a respective put option. |
• | Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
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2010 | 2009 | |||||||||||||||||||||||||||||||
€ millions | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Financial assets | ||||||||||||||||||||||||||||||||
Debt investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||
Equity investments | 1 | 27 | 0 | 28 | 1 | 24 | 0 | 25 | ||||||||||||||||||||||||
Available-for-sale financial assets | 1 | 27 | 0 | 28 | 1 | 24 | 0 | 25 | ||||||||||||||||||||||||
Derivative financial assets | 0 | 116 | 0 | 116 | 0 | 66 | 0 | 66 | ||||||||||||||||||||||||
Total | 1 | 143 | 0 | 144 | 1 | 90 | 0 | 91 | ||||||||||||||||||||||||
Financial liabilities | ||||||||||||||||||||||||||||||||
Derivative financial liabilities | 0 | 146 | 0 | 146 | 0 | 126 | 0 | 126 | ||||||||||||||||||||||||
Total | 0 | 146 | 0 | 146 | 0 | 126 | 0 | 126 | ||||||||||||||||||||||||
• | Cash and cash equivalents, trade receivables, other non-derivative financial assets: Because the financial assets are primarily short-term, it is assumed that their carrying values approximate their fair values. Non-interest-bearing or below market-rate non-current loans to third parties or employees are discounted to the present value of estimated future cash flows using the original effective interest rate the respective borrower would have to pay to a bank for a similar loan. | |
• | Available-for-sale equity investments in private companies: For these investments in equity instruments primarily consisting of venture capital investments, fair values cannot readily be observed as they do not have a quoted market price in an active market. Also, calculating fair value by discounting estimated future cash flows is not possible as a determination of cash flows is not |
reliable. Therefore, such investments are accounted for at cost approximating fair value, with impairment being assessed based on revenue multiples of similar companies and review of each investment’s cash position, financing needs, earnings and revenue outlook, operational performance, management and ownership changes, and competition. | ||
• | Accounts payable and non-derivative financial liabilities: Non-derivative financial liabilities include financial debt and other non-derivative financial liabilities. Accounts payable and other non-derivative financial liabilities are mainly short-term, and thus their fair values approximate their carrying values. The carrying values of financial debt with variable interest rates generally approximate the fair values. The fair value of fixed-rate financial debt is based on quoted market prices or determined by discounting the cash flows using the market interest rates on December 31. |
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(28) | SHARE-BASED PAYMENT PLANS |
a) | Cash-Settled Share-Based Payment Plans |
Fair Value and Parameters at Grant Date by Plan | ||||||||||||||||
2010 | 2009 | 2008 | ||||||||||||||
SOP | Sybase | STAR | SOP | Incentive | BO | |||||||||||
2010 | Rights(1) | PP | PP | STAR | 2010 | SOP | Rights(1) | |||||||||
Weighted average fair value | 6.46 € | 50.07 € | 3.53 € | 5.62 € | 3.26 € | 4.93 € | 7.11 € | 20.98 € | ||||||||
Expected life (in years) | 5.8 | 1.5 | 2.3 | 4.6 | 2.5 | 2.9 | 4.8 | 3.3 | ||||||||
Risk-free interest rate | 1.63% | N/A | 1.55% | 2.39% | 3.21% | 3.54% | 3.43% | 3.42% to 3.74% | ||||||||
Grant price of SAP share | 35.48 € | N/A | 28.00 € | 28.00 € | 32.69 € | 36.15 € | 32.69 € | N/A | ||||||||
Share price of SAP share | 35.45 € | N/A | 28.23 € | 28.23 € | 31.61 € | 31.45 € | 31.61 € | 32.28 € | ||||||||
Expected volatility of SAP shares | 26.9% | N/A | 39.9% | 35.0% | 31.8% | 29.6% | 30.0% | 29.0% | ||||||||
Expected dividend yield of SAP shares | 1.65% | N/A | 1.76% | 1.76% | 1.74% | 1.56% | 1.74% | 1.30% | ||||||||
Grant price of reference index | N/A | N/A | 97.54 € | 97.54 € | N/A | 165.59 € | N/A | N/A | ||||||||
Share price of reference index | N/A | N/A | 108.82 € | 108.82 € | N/A | 191.12 € | N/A | N/A | ||||||||
Expected volatility of reference index | N/A | N/A | 35.8% | 25.2% | N/A | 15.9% | N/A | N/A | ||||||||
Expected dividend yield of reference index | N/A | N/A | 1.10% | 1.06% | N/A | N/A | N/A | N/A | ||||||||
Expected correlation SAP share/reference index | N/A | N/A | 38.1% | 36.5% | N/A | 33.0% | N/A | N/A |
(1) | Fair value at acquisition date |
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Fair Value and Parameters Used at Dec 31, 2010 | ||||||||||||||
BO | Sybase | |||||||||||||
STAR | STAR PP | SOP | SOP PP | SOP 2010 | Rights | Rights | ||||||||
Option pricing model used | Monte-Carlo | Monte-Carlo | Binomial | Monte-Carlo | Monte-Carlo | Binomial | None | |||||||
Range of grant dates | 03/2007 | 05/2009 | 03/2007 | 05/2009 | 09/2010 | 02/1998 | 07/2010 | |||||||
04/2008 | 04/2008 | 01/2008 | ||||||||||||
Quantity of awards issued in thousands | 37,202 | 16,029 | 15,664 | 10,321 | 5,397 | 5,162 | 745 | |||||||
Weighted average fair value as at Dec 31, 2010 | 0.13 € | 0.01 € | 4.58 € | 4.60 € | 7.74 € | 14.79 € | 48.65 € | |||||||
Weighted average intrinsic value as at Dec 31, 2010 | 0.13 € | 0.00 € | 1.19 € | 0.00 € | 0.00 € | 14.14 € | 48.65 € | |||||||
Expected life as at Dec 31, 2010 (in years) | 0.1 | 0.7 | 1.7 | 3.1 | 5.5 | 2.4 | 1.1 | |||||||
Risk-free interest rate (depending on maturity) | N/A | 0.56% | 0.56% to 0.87% | 1.24% | 1.97% to 2.56% | 0.75% | N/A | |||||||
Expected volatility SAP shares | N/A | 24.4% | 22.7% to 26.4% | 26.8% | 26.3% to 26.7% | 34.0% | N/A | |||||||
Expected dividend yield SAP shares | N/A | 1.79% | 1.79% | 1.79% | 1.79% | 1.75% | N/A | |||||||
Share price of reference index | N/A | 165.74 | N/A | 165.74 | N/A | N/A | N/A | |||||||
Expected volatility reference index | N/A | 11.9% | N/A | 29.4% | N/A | N/A | N/A | |||||||
Expected dividend yield reference index | N/A | 1.11% | N/A | 1.15% | N/A | N/A | N/A | |||||||
Expected correlation SAP share/reference index | N/A | 7.9% | N/A | 37.4% | N/A | N/A | N/A |
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Changes in Numbers of Outstanding Awards (000) | ||||||||||||||||||||||||||||||||
STAR | Incentive | SOP | SOP | BO | Sybase | |||||||||||||||||||||||||||
STAR | PP | 2010 | SOP | PP | 2010 | Rights | Rights | |||||||||||||||||||||||||
Outstanding as of 12/31/2007 | 24,879 | N/A | 1,157 | 6,698 | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||
Granted in 2008 | 18,517 | N/A | 134 | 8,650 | N/A | N/A | 5,162 | N/A | ||||||||||||||||||||||||
Exercised/paid in 2008 | −4,037 | N/A | 0 | 0 | N/A | N/A | −1,720 | N/A | ||||||||||||||||||||||||
Expired in 2008 | 0 | N/A | 0 | 0 | N/A | N/A | 0 | N/A | ||||||||||||||||||||||||
Forfeited in 2008 | −2,125 | N/A | −124 | −862 | N/A | N/A | −479 | N/A | ||||||||||||||||||||||||
Outstanding as of 12/31/2008 | 37,234 | N/A | 1,167 | 14,486 | N/A | N/A | 2,963 | N/A | ||||||||||||||||||||||||
Granted in 2009 | 0 | 16029 | 0 | 0 | 10321 | N/A | 0 | N/A | ||||||||||||||||||||||||
Exercised/paid in 2009 | −2,943 | 0 | 0 | 0 | 0 | N/A | −704 | N/A | ||||||||||||||||||||||||
Expired in 2009 | 0 | 0 | 0 | 0 | 0 | N/A | 0 | N/A | ||||||||||||||||||||||||
Forfeited in 2009 | −2,620 | −518 | −66 | −998 | −243 | N/A | −372 | N/A | ||||||||||||||||||||||||
Outstanding as of 12/31/2009 | 31,671 | 15,511 | 1,101 | 13,488 | 10,078 | N/A | 1,887 | N/A | ||||||||||||||||||||||||
Granted in 2010 | 0 | 0 | 0 | 0 | 0 | 5,397 | 745 | |||||||||||||||||||||||||
Exercised/paid in 2010 | −15,943 | 0 | 0 | −167 | 0 | 0 | −571 | −9 | ||||||||||||||||||||||||
Expired in 2010 | 0 | 0 | −1,101 | 0 | 0 | 0 | ||||||||||||||||||||||||||
Forfeited in 2010 | −648 | −747 | 0 | −323 | −503 | −24 | −216 | −13 | ||||||||||||||||||||||||
Outstanding as of 12/31/2010 | 15,080 | 14,764 | 0 | 12,998 | 9,575 | 5,373 | 1,100 | 723 | ||||||||||||||||||||||||
Additional information | ||||||||||||||||||||||||||||||||
Awards exercisable as of 12/31/2008 | N/A | N/A | 0 | 0 | N/A | N/A | 1,528 | N/A | ||||||||||||||||||||||||
Awards exercisable as of 12/31/2009 | N/A | 0 | 0 | 5,965 | 0 | N/A | 1,390 | N/A | ||||||||||||||||||||||||
Awards exercisable as of 12/31/2010 | N/A | 0 | 0 | 12,998 | 0 | 0 | 1,060 | N/A | ||||||||||||||||||||||||
Aggregate intrinsic value of vested awards in € million, as of 12/31/2008 | N/A | N/A | 0 | 0 | N/A | N/A | 9.6 | N/A | ||||||||||||||||||||||||
Aggregate intrinsic value of vested awards in € million, as of 12/31/2009 | N/A | 0 | 0 | 0 | 0 | N/A | 18.5 | N/A | ||||||||||||||||||||||||
Aggregate intrinsic value of vested awards in € million, as of 12/31/2010 | N/A | 0 | 0 | 15.5 | 0 | 0 | 22.4 | 0 | ||||||||||||||||||||||||
Weighted average exercise price in € | N/A | N/A | N/A | 37.43 | 47.58 | 39.21 | 24.18 | N/A | ||||||||||||||||||||||||
Provision as of 12/31/2008 in € millions | 14.8 | N/A | 2.1 | 35.8 | N/A | N/A | 37.1 | N/A | ||||||||||||||||||||||||
Provision as of 12/31/2009 in € millions | 12.1 | 5 | 0.1 | 53.3 | 14.3 | N/A | 28.9 | N/A | ||||||||||||||||||||||||
Provision as of 12/31/2010 in € millions | 1.9 | 0 | 0 | 59.4 | 35.8 | 3.9 | 24.0 | 22.1 | ||||||||||||||||||||||||
Expense recognized in 2008 in € millions | 27.9 | N/A | −0.9 | 23.6 | N/A | N/A | 8.3 | N/A | ||||||||||||||||||||||||
Expense recognized in 2009 in € millions | 5.9 | 14.3 | −1.9 | 19.6 | 5 | N/A | 5.9 | N/A | ||||||||||||||||||||||||
Expense recognized in 2010 in € millions | −2.4 | −5.1 | −0.1 | 0.2 | 21.0 | 3.9 | 6.3 | 4.8 |
a.1) | STAR Plans (STAR) |
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a.5) | SOP Performance Plan 2009 (SOP PP) |
a.6) | SAP Stock Option Plan 2010 (SOP 2010) |
a.7) | Business Objects Cash-Settled Awards Replacing Pre-Acquisition Business Objects Awards (BO Rights) |
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• | The replaced awards were planned to be settled by issuing equity instruments whereas the replacing awards are settled in cash either via the CPM or via the LAM. | |
• | The replaced awards were indexed to Business Objects’ share price whereas the replacing awards are indexed to SAP’s share price as follows: SAP’s offering price for Business Objects shares during the tender offer (€42) is divided by SAP AG’s share price at the tender offer closing date (€32.28) and the result is multiplied by the weighted average closing price of the SAP share during the 20 trading days preceding the exercise or disposition date. |
a.8) | Sybase Cash-Settled Awards Replacing Pre-Acquisition Sybase Awards (Sybase Rights) |
b) | Equity-Settled Share-Based Payment Plans |
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b.1) | Share Matching Plan |
b.2) | Employee Discounted Stock Purchase Programs (EDSPs) |
b.3) | Stock Award Program |
b.4) | Stock Option Plan 2002 |
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b.5) | Long Term Incentive 2000 Plan (LTI 2000 Plan) |
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(29) | SEGMENT AND GEOGRAPHIC INFORMATION |
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• | The internal reporting to our CODM generally attributes revenue to the segment that is responsible for the related transaction regardless of revenue classification in our income statement. Thus, for example, the Training segment’s revenue includes certain amounts classified as software revenue in our Consolidated Income Statements. Additionally revenue for Sybase products might be reported under any of the four segments. | |
• | The internal reporting to our CODM excludes share-based compensation expenses and — since 2009 — restructuring costs on segment level. For all years presented, these expenses were managed and reviewed at Group level only. | |
• | Differences in foreign currency translations result in deviations between the amounts reported internally to our CODM and the amounts reported in the Consolidated Financial Statements. | |
• | The revenue numbers in the internal reporting to our CODM include the support revenue that would have been reflected by acquired entities had it remained a stand-alone entity but which are not reflected as revenue under IFRS as a result of purchase accounting for support contracts in effect at the time of an acquisition. | |
• | The income measures in the internal reporting to our CODM include the full amount of support revenue and exclude the following acquisition-related charges as well as discontinued activities: |
— | Amortization expense/impairment charges of intangibles |
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acquired in business combinations and certain stand-alone acquisitions of intellectual property |
— | Expenses from purchased in-process research and development | |
— | Restructuring expenses and settlements of pre-existing relationships |
— | Acquisition-related third-party costs that are required to be expensed | |
— | Results of the discontinued operations that qualify as such under IFRS in all respects except that they do not represent a major line of business. For 2010, 2009 and 2008, this relates exclusively to the operations of TomorrowNow. |
€ millions | Product | Consulting | Training | Sybase | Total | |||||||||||||||
2010 | ||||||||||||||||||||
External revenue from reportable segment | 9,020 | 2,714 | 362 | 387 | 12,483 | |||||||||||||||
Segment result | 5,395 | 746 | 136 | 127 | 6,404 | |||||||||||||||
Depreciation and amortization directly attributable to each segment | −17 | −8 | −2 | −7 | −34 | |||||||||||||||
2009 | ||||||||||||||||||||
External revenue from reportable segment | 7,846 | 2,498 | 332 | N/A | 10,676 | |||||||||||||||
Segment result | 4,731 | 781 | 115 | N/A | 5,627 | |||||||||||||||
Depreciation and amortization directly attributable to each segment | −53 | −7 | −2 | N/A | −62 | |||||||||||||||
2008 | ||||||||||||||||||||
External revenue from reportable segment | 8,366 | 2,824 | 525 | N/A | 11,715 | |||||||||||||||
Segment result | 4,696 | 789 | 225 | N/A | 5,710 | |||||||||||||||
Depreciation and amortization directly attributable to each segment | −64 | −8 | −2 | N/A | −74 |
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€ millions | 2010 | 2009 | 2008 | |||||||||
External revenue from reportable segments | 12,483 | 10,676 | 11,715 | |||||||||
External revenue from activities outside of the reportable segments | 55 | 7 | 16 | |||||||||
Adjustment support revenue | −74 | −11 | −166 | |||||||||
Revenue from discontinued operations | 0 | 0 | 10 | |||||||||
Total revenue | 12,464 | 10,672 | 11,575 | |||||||||
Segment result from reportable segments | 6,404 | 5,627 | 5,710 | |||||||||
External revenue from activities outside of the reportable segments | 55 | 7 | 16 | |||||||||
Development expense — management view | −1,800 | −1,801 | −1,620 | |||||||||
Administration and other corporate expenses — management view | −651 | −659 | −734 | |||||||||
Share-based payment expense | −58 | −54 | −63 | |||||||||
Restructuring | −2 | −194 | −8 | |||||||||
Acquisition-related restructuring expenses | 5 | −4 | −52 | |||||||||
Acquisition-related charges | −305 | −267 | −286 | |||||||||
Adjustment support revenue | −74 | −11 | −166 | |||||||||
Loss from discontinued operations | −983 | −56 | −96 | |||||||||
Operating profit | 2,591 | 2,588 | 2,701 | |||||||||
Other non-operating expense, net | −186 | −73 | −27 | |||||||||
Financial income, net | −67 | −80 | −50 | |||||||||
Profit before tax | 2,338 | 2,435 | 2,624 |
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1) | Europe, Middle East, Africa |
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1) | Europe, Middle East, Africa |
1) | Europe, Middle East, Africa |
1) | Europe, Middle East, Africa |
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(30) | BOARD OF DIRECTORS |
Memberships on supervisory boards and other comparable | ||
governing bodies of enterprises, other than subsidiaries of SAP | ||
EXECUTIVE BOARD | on December 31, 2010 | |
Bill McDermott Co-Chief Executive Officer (from February 7, 2010) Strategy, Governance, Corporate Development, Innovation, Sales, Field Services, Consulting, Ecosystem Activities, Communications, Marketing | Board of Directors, ANSYS, Inc., Canonsburg, Philadelphia, United States Board of Directors, Under Armour, Inc., Baltimore, Maryland, United States Board of Directors, PAETEC Communications, Inc., Fairport, New York, New York, United States | |
Jim Hagemann Snabe Co-Chief Executive Officer (from February 7, 2010) Strategy, Governance, Corporate Development, Innovation, Products and Solutions Development, Communications, Marketing | Board of Directors, Linkage A/S, Copenhagen, Denmark Board of Directors, Thrane & Thrane A/S, Lyngby, Denmark Supervisory Board, Crossgate AG, Munich, Germany (until July 31, 2010) | |
Dr. Werner Brandt Chief Financial Officer Finance and Administration including Investor Relations and Data Protection & Privacy | Supervisory Board, Deutsche Lufthansa AG, Frankfurt am Main, Germany Supervisory Board, QIAGEN N.V., Venlo, the Netherlands Supervisory Board, Heidelberger Druckmaschinen AG, Heidelberg, Germany | |
Dr. Angelika Dammann (from July 1, 2010) Chief Human Resources Officer Labor Relations Director Global Human Resources | Supervisory Board, ESMT European School of Management and Technology GmbH, Berlin, Germany (from December 15, 2010) | |
Gerhard Oswald Chief Operating Officer SAP Active Global Support, Global IT, Globalization Services, Quality Governance & Production, Operations, SAP Labs Network | ||
Vishal Sikka (from February 7, 2010) Innovation, Technology and Architecture Across the Company, Global Research | ||
BOARD MEMBERS WHO LEFT DURING 2010 | ||
Erwin Gunst (until January 31, 2010) | ||
Léo Apotheker (until February 7, 2010) | ||
John Schwarz (until February 11, 2010) |
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Memberships on supervisory boards and other comparable | ||
governing bodies of enterprises, other than subsidiaries of SAP | ||
SUPERVISORY BOARD | on December 31, 2010 | |
Prof. Dr. h.c. mult. Hasso Plattner(2),(4),(5),(7),(8),(9)Chairman | ||
Lars Lamadé(1),(4),(7),(9) Deputy Chairman Project Manager Service & Support | ||
Pekka Ala-Pietilä(5),(8),(9) Co-founder and CEO Blyk Ltd. London, UK | Board of Directors, Pöyry Plc, Vantaa, Finland Board of Directors, CVON Group Limited, London, UK Board of Directors, CVON Limited, London, UK Board of Directors, CVON Innovations Limited, London, UK Board of Directors, Blyk Services Oy, Helsinki, Finland Board of Directors, CVON Innovation Services Oy, Turku, Finland Board of Directors, CVON Future Limited, London, UK Board of Directors, HelloSoft Inc., San José, California, United States Board of Directors, Blyk (NL) Ltd., London, UK Board of Directors, Blyk (DE) Ltd., London, UK Board of Directors, Blyk (ES) Ltd., London, UK Board of Directors, Blyk (BE) Ltd., London, UK Board of Directors, Blyk.nl NV, Amsterdam, the Netherlands Board of Directors, Blyk.be SA, Hoeilaart, Belgium Board of Directors, Blyk International Ltd., London, UK | |
Thomas Bamberger(1),(3) Chief Operating Officer Operations | ||
Panagiotis Bissiritsas(1),(2),(6) Support Expert | ||
Willi Burbach(1),(5),(7) Developer | ||
Prof. Dr. Wilhelm Haarmann(2),(6),(7),(9) Attorney-at-law, certified public auditor, certified tax advisor Senior Partner HAARMANN Partnerschaftsgesellschaft, Rechtsanwälte, Steuerberater, Wirtschaftsprüfer, Frankfurt am Main, Germany | Supervisory Board, Vodafone Holding GmbH, Düsseldorf, Germany (until December 16, 2010) | |
Peter Koop(1),(5),(7) Industry Business Development Expert | ||
Christiane Kuntz-Mayr(1),(5) Deputy Chairperson of the Works Council at SAP AG | ||
Bernard Liautaud (5) General Partner Balderton Capital, London, UK | Board of Directors, Clinical Solutions Holdings Ltd., Basingstoke, Hampshire, UK Board of Directors, nlyte Software Ltd., London, UK Board of Directors, Talend SA, Suresnes, France Board of Directors der Cap Gemini, Paris, France Board of Directors, Quickbridge (UK) Ltd., London, UK Board of Directors, SCYTL Secure Electronic Voting SA, Barcelona, Spain (from June 30, 2010) Board of Directors, Abiquo Group Inc., Redwood City, California, USA (from November 23, 2010) | |
Dr. Gerhard Maier(1),(2),(3) Development Project Manager | ||
Dr. h. c. Hartmut Mehdorn(4),(6) Independent Consultant | Board of Directors, Air Berlin PLC, Rickmansworth, UK Advisory Board, Fiege-Gruppe, Greven, Germany |
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Prof. Dr.-Ing. Dr. h. c. Dr.-Ing. E. h. Joachim Milberg(2),(3),(5),(7),(8) Chairman of the Supervisory Board BMW AG, Munich, Germany | Supervisory Board, Bertelsmann AG, Gütersloh, Germany Supervisory Board, Festo AG, Esslingen, Germany Board of Directors, Deere & Company, Moline, Illinois, United States Supervisory Board, ZF Friedrichshafen AG, Friedrichshafen, Germany | |
Dr. Erhard Schipporeit(3),(9) Management Consultant | Supervisory Board, Talanx AG, Hanover, Germany Supervisory Board, Deutsche Börse AG, Frankfurt am Main, Germany Supervisory Board, HDI V.a.G., Hanover, Germany Supervisory Board, Hannover Rückversicherung AG, Hanover, Germany Supervisory Board, TUI Travel PLC, London, UK Supervisory Board, Fuchs Petrolub AG, Mannheim, Germany Board of Directors, Fidelity Advisor World Funds, Bermuda (until September 30, 2010) Board of Directors, Fidelity Funds SICAV, Luxemburg | |
Stefan Schulz(1),(4),(5),(6),(9) Development Project Manager | ||
Prof. Dr.-Ing. Dr.-Ing. E. h. Klaus Wucherer(5) Managing Director of Dr. Klaus Wucherer Innovations- und Technologieberatung GmbH, Erlangen, Germany | Supervisory Board, Heitech AG, Erlangen, Germany (from August 9, 2010) Supervisory Board, Dürr AG, Bietigheim-Bissingen, Germany Supervisory Board, Infineon Technologies AG, Munich, Germany Supervisory Board, LEONI AG, Nürnberg, Germany | |
Information as at December 31, 2010 | ||
(1) Elected by the employees | (6) Member of the Company’s Finance and Investment | |
(2) Member of the Company’s Compensation Committee | Committee | |
(3) Member of the Company’s Audit Committee | (7) Member of the Company’s General Committee | |
(4) Member of the Company’s Mediation Committee | (8) Member of the Company’s Nomination Committee | |
(5) Member of the Company’s Technology and Strategy | (9) Member of the Company’s Special Committee | |
Committee |
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(31) | RELATED PARTY TRANSACTIONS |
(32) | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
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(33) | SUBSEQUENT EVENTS |
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(34) | SUBSIDIARIES, ASSOCIATES, AND OTHER EQUITY INVESTMENTS |
Number of | ||||||||||||||||||||
Total | Profit/ Loss(-) | Total Equity | Employees | |||||||||||||||||
Revenue | After Tax for | as of | as of | |||||||||||||||||
as at December 31, 2010 | Ownership | in 20101) | 20101) | 12/31/20101) | 12/31/20102) | |||||||||||||||
Name and Location of Company | % | €(000) | €(000) | €(000) | ||||||||||||||||
I. Subsidiaries | ||||||||||||||||||||
GERMANY | ||||||||||||||||||||
OutlookSoft Deutschland GmbH, Walldorf4) | 100.0 | 0 | 18 | 0 | 0 | |||||||||||||||
SAF Germany GmbH, Konstanz4) | 70.9 | 1,007 | 50 | 360 | 0 | |||||||||||||||
SAP Beteiligungs GmbH, Walldorf | 100.0 | 3 | 2 | 46 | 0 | |||||||||||||||
SAP Deutschland AG & Co. KG, Walldorf9) | 100.0 | 2,597,168 | 607,039 | 1,257,501 | 4,596 | |||||||||||||||
SAP Dritte Beteiligungs- und Vermögensverwaltung GmbH, Walldorf4), 5),9) | 100.0 | 0 | (35,114 | ) | 491,956 | 0 | ||||||||||||||
SAP Erste Beteiligungs- und Vermögensverwaltung GmbH, Walldorf5),9) | 100.0 | 0 | 23,141 | 827,703 | 0 | |||||||||||||||
SAP Foreign Holdings GmbH, Walldorf | 100.0 | 0 | 32 | 159 | 0 | |||||||||||||||
SAP Fünfte Beteiligungs- und Vermögensverwaltung GmbH, Walldorf3), 4) | 100.0 | 0 | 0 | 2,244,919 | 0 | |||||||||||||||
SAP Hosting Beteiligungs GmbH, St. Leon-Rot | 100.0 | 0 | 0 | 26 | 0 | |||||||||||||||
SAP Portals Europe GmbH, Walldorf4) | 100.0 | 0 | 236 | 123,471 | 0 | |||||||||||||||
SAP Portals Holding Beteiligungs GmbH, Walldorf4) | 100.0 | 0 | (29 | ) | 928,967 | 0 | ||||||||||||||
SAP Projektverwaltungs- und Beteiligungs GmbH, Walldorf4), 5),9) | 100.0 | 0 | (37,525 | ) | 291,654 | 0 | ||||||||||||||
SAP Puerto Rico GmbH, Walldorf7) | 100.0 | 22,802 | 155 | 872 | 32 | |||||||||||||||
SAP Retail Solutions Beteiligungsgesellschaft mbH, Walldorf | 100.0 | 0 | 179 | 14,090 | 0 | |||||||||||||||
SAP Vierte Beteiligungs- und Vermögensverwaltung GmbH, Walldorf | 100.0 | 0 | 0 | 25 | 0 | |||||||||||||||
SAP Zweite Beteiligungs- und Vermögensverwaltung GmbH, Walldorf5),9) | 100.0 | 0 | 87,373 | 90,944 | 0 | |||||||||||||||
Steeb Anwendungssysteme GmbH, Abstatt9) | 100.0 | 61,068 | 2,022 | 14,009 | 191 | |||||||||||||||
Sybase Germany GmbH, Düsseldorf3), 4), 8) | 100.0 | 15,945 | 474 | (2,975 | ) | 161 | ||||||||||||||
TechniData BCS GmbH, Siegen3), 4) | 100.0 | 4,726 | (378 | ) | 744 | 33 | ||||||||||||||
TechniData GmbH, Markdorf3) | 100.0 | 48,579 | 7,013 | 83,615 | 285 | |||||||||||||||
Wicommunications GmbH, Munich4) | 100.0 | 0 | 0 | 49 | 0 | |||||||||||||||
REST OF EUROPE, MIDDLE EAST, AFRICA | ||||||||||||||||||||
Ambin Properties (Proprietary) Limited, Johannesburg, South Africa4) | 100.0 | 0 | (60 | ) | (562 | ) | 0 | |||||||||||||
Armstrong Laing (North America) Limited, London, United Kingdom4) | 100.0 | 0 | 0 | 1 | 0 | |||||||||||||||
Armstrong Laing Limited, London, United Kingdom4) | 100.0 | 0 | (2 | ) | 2,975 | 0 | ||||||||||||||
Blue-Edge Software Limited, London, United Kingdom4) | 100.0 | 0 | 0 | 0 | 0 | |||||||||||||||
Business Objects (UK) Limited, London, United Kingdom4) | 100.0 | 0 | 461 | 32,026 | 0 | |||||||||||||||
Business Objects Holding B.V., s-Hertogenbosch, the Netherlands4) | 100.0 | 0 | 51 | 36,024 | 0 | |||||||||||||||
Business Objects Software Limited, Dublin, Ireland4) | 100.0 | 683,339 | 156,511 | 2,779,237 | 195 |
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Number of | ||||||||||||||||||||
Total | Profit/ Loss(-) | Total Equity | Employees | |||||||||||||||||
Revenue | After Tax for | as of | as of | |||||||||||||||||
as at December 31, 2010 | Ownership | in 20101) | 20101) | 12/31/20101) | 12/31/20102) | |||||||||||||||
Name and Location of Company | % | €(000) | €(000) | €(000) | ||||||||||||||||
Cartesis UK Limited, London, United Kingdom4) | 100.0 | 0 | 1 | 1,116 | 0 | |||||||||||||||
Chemical Exchange Directory S.A., Collonge-Bellerive, Switzerland3),4) | 100.0 | 841 | 216 | 1,600 | 1 | |||||||||||||||
Christie Partners Holding CV, Rotterdam, The Netherlands3),4),8) | 100.0 | 0 | 15 | (21,823 | ) | 0 | ||||||||||||||
Crystal Decisions (Ireland) Limited, Dublin, Ireland4) | 100.0 | 0 | 205 | 44,612 | 0 | |||||||||||||||
Crystal Decisions France S.A.S., Levallois-Perret, France4) | 100.0 | 0 | 52 | 7,863 | 0 | |||||||||||||||
Crystal Decisions Holding Limited, Dublin, Ireland4) | 100.0 | 0 | 61 | 77,556 | 0 | |||||||||||||||
Crystal Decisions UK Limited, London, United Kingdom4) | 100.0 | 0 | 1,469 | 2,125 | 0 | |||||||||||||||
Edgewing Limited, London, United Kingdom4) | 100.0 | 0 | 354 | (17 | ) | 0 | ||||||||||||||
Inxight Software UK Limited, London, United Kingdom4) | 100.0 | 0 | 0 | 143 | 0 | |||||||||||||||
Joe D Partners CV, Utrecht, The Netherlands3),4),8) | 100.0 | 0 | 18,112 | 707,768 | 0 | |||||||||||||||
Limited Liability Company SAP CIS, Moscow, Russia | 100.0 | 278,497 | 29,068 | 129,782 | 504 | |||||||||||||||
Limited Liability Company SAP Kazakhstan, Almaty, Kazakhstan | 100.0 | 12,267 | 103 | 1,295 | 11 | |||||||||||||||
Limited Liability Company SAP Ukraine, Kiev, Ukraine | 100.0 | 13,323 | (448 | ) | (1,559 | ) | 103 | |||||||||||||
Merlin Systems Oy, Espoo, Finland4) | 100.0 | 7,929 | 472 | 1,873 | 28 | |||||||||||||||
Millsgate Holding B.V., Amsterdam, the Netherlands4) | 100.0 | — | — | — | — | |||||||||||||||
S.A.P. Nederland B.V., s-Hertogenbosch, the Netherlands | 100.0 | 339,452 | 45,941 | 332,880 | 399 | |||||||||||||||
SAF Simulation, Analysis and Forecasting AG, Tägerwilen, Switzerland | 70.9 | 14,610 | 752 | 34,788 | 61 | |||||||||||||||
SAF Simulation, Analysis and Forecasting Slovakia s.r.o., Bratislava, Slovakia4) | 70.9 | 1,242 | (88 | ) | 170 | 20 | ||||||||||||||
SAP — NOVABASE, A.C.E., Porto Salvo, Portugal3),4) | 66.7 | — | — | — | — | |||||||||||||||
SAP (Schweiz) AG, Biel, Switzerland | 100.0 | 485,957 | 21,245 | 65,347 | 541 | |||||||||||||||
SAP (UK) Limited, Feltham, United Kingdom | 100.0 | 612,522 | 63,944 | 94,265 | 1,044 | |||||||||||||||
SAP Belgium — Systems Applications and Products NV/SA, Brussels, Belgium4) | 100.0 | 166,008 | 12,833 | 98,102 | 256 | |||||||||||||||
SAP BULGARIA EOOD, Sofia, Bulgaria4) | 100.0 | 2,549 | (184 | ) | 795 | 10 | ||||||||||||||
SAP Business Services Center Europe, s.r.o., Prague, Czech Republic | 100.0 | 22,185 | 602 | 6,475 | 284 | |||||||||||||||
SAP Commercial Services Ltd., Valetta, Malta | 100.0 | 0 | (5 | ) | (10 | ) | 0 | |||||||||||||
SAP ČR, spol. s r.o., Prague, Czech Republic | 100.0 | 85,687 | 10,447 | 27,726 | 225 | |||||||||||||||
SAP CYPRUS Ltd, Nicosia, Cyprus4) | 100.0 | 3,252 | (3 | ) | (1,824 | ) | 2 | |||||||||||||
SAP d.o.o., Zagreb, Croatia | 100.0 | 6,807 | (983 | ) | (431 | ) | 17 |
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Number of | ||||||||||||||||||||
Total | Profit/ Loss(-) | Total Equity | Employees | |||||||||||||||||
Revenue | After Tax for | as of | as of | |||||||||||||||||
as at December 31, 2010 | Ownership | in 20101) | 20101) | 12/31/20101) | 12/31/20102) | |||||||||||||||
Name and Location of Company | % | €(000) | €(000) | €(000) | ||||||||||||||||
SAP Danmark A/S, Copenhagen, Denmark | 100.0 | 142,267 | 17,286 | 29,753 | 154 | |||||||||||||||
SAP Egypt LLC, Cairo, Egypt3),4) | 100.0 | 0 | 0 | 9 | 0 | |||||||||||||||
SAP EMEA Inside Sales S.L., Barcelona, Spain | 100.0 | 14,593 | 444 | 1,646 | 135 | |||||||||||||||
SAP España — Sistemas, Aplicaciones y Productos en la Informática, S.A., Madrid, Spain4) | 100.0 | 224,089 | 27,335 | 177,793 | 359 | |||||||||||||||
SAP Estonia OÜ, Tallinn, Estonia | 100.0 | 1,320 | 16 | 16 | 1 | |||||||||||||||
SAP Finland Oy, Espoo, Finland | 100.0 | 96,985 | 11,022 | 65,135 | 109 | |||||||||||||||
SAP France Holding, Paris, France | 100.0 | 606 | 91,943 | 4,879,572 | 4 | |||||||||||||||
SAP France, Paris, France | 100.0 | 716,143 | 67,047 | 1,584,792 | 1,432 | |||||||||||||||
SAP HELLAS SYSTEMS APPLICATIONS AND DATA PROCESSING S.A, Athens, Greece | 100.0 | 32,782 | 1,907 | 7,451 | 54 | |||||||||||||||
SAP Hungary Rendszerek, Alkalmazások és Termékek az Adatfeldolgozásban Informatikai Kft., Budapest, Hungary | 100.0 | 45,533 | 229 | 17,616 | 367 | |||||||||||||||
SAP Ireland Limited, Dublin, Ireland | 100.0 | 3,781 | 777 | (1,181 | ) | 0 | ||||||||||||||
SAP Ireland US-Financials Services Ltd., Dublin, Ireland3),4) | 100.0 | 0 | 67,288 | 2,284,278 | 3 | |||||||||||||||
SAP Israel Ltd., Ra’anana, Israel | 100.0 | 15,842 | 196 | (3,536 | ) | 75 | ||||||||||||||
SAP Italia Sistemi Applicazioni Prodotti in Data Processing S.p.A., Milan, Italy4) | 100.0 | 306,418 | 22,256 | 242,814 | 508 | |||||||||||||||
SAP Labs Bulgaria EOOD, Sofia, Bulgaria | 100.0 | 19,607 | 845 | 4,417 | 439 | |||||||||||||||
SAP Labs Finland Oy, Espoo, Finland4)8) | 100.0 | 7,188 | 421 | 45,775 | 48 | |||||||||||||||
SAP LABS France S.A.S., Mougins, France | 100.0 | 39,206 | 9,041 | 22,113 | 264 | |||||||||||||||
SAP Labs Israel Ltd., Ra’anana, Israel | 100.0 | 42,020 | 2,076 | 12,404 | 304 | |||||||||||||||
SAP Latvia SIA, Riga, Latvia | 100.0 | 1,452 | 138 | (508 | ) | 2 | ||||||||||||||
SAP Malta Investments Ltd., Valetta, Malta | 100.0 | 0 | (5 | ) | (10 | ) | 0 | |||||||||||||
SAP Middle East and North Africa L.L.C., Dubai, United Arab Emirates7) | 49.0 | 65,203 | (19,775 | ) | 19,994 | 162 | ||||||||||||||
SAP Nederland Holding B.V., s-Hertogenbosch, The Netherlands | 100.0 | 0 | 994 | 518,981 | 0 | |||||||||||||||
SAP Norge AS, Lysaker, Norway | 100.0 | 61,484 | (4,137 | ) | 23,571 | 86 | ||||||||||||||
SAP Österreich GmbH, Vienna, Austria | 100.0 | 159,844 | 18,961 | 24,015 | 348 | |||||||||||||||
SAP Polska Sp. z o.o., Warsaw, Poland | 100.0 | 61,850 | 6,101 | 29,156 | 122 | |||||||||||||||
SAP Portals Israel Ltd., Ra’anana, Israel4) | 100.0 | 53,699 | 14,299 | 84,152 | 291 | |||||||||||||||
SAP Portugal — Sistemas, Aplicações e Produtos Informáticos, Sociedade Unipessoal, Lda., Porto Salvo, Portugal | 100.0 | 52,387 | 1,968 | 14,405 | 99 | |||||||||||||||
SAP Public Serv. Hungary, Budapest, Hungary | 100.0 | 828 | 273 | 399 | 5 | |||||||||||||||
SAP Romania SRL, Bucharest, Romania | 100.0 | 17,592 | 2,991 | 5,459 | 94 | |||||||||||||||
SAP Saudi Arabia Software Services Limited, Riyadh, Kingdom of Saudi Arabia | 100.0 | 26,297 | 2,973 | 30,207 | 30 | |||||||||||||||
SAP Saudi Arabia Software Trading Limited, Riyadh, Kingdom of Saudi Arabia | 51.0 | 15,919 | (1,322 | ) | 7,828 | 31 | ||||||||||||||
SAP Service and Support (Ireland) Limited, Dublin, Ireland | 100.0 | 60,434 | 2,032 | 27,736 | 700 |
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Number of | ||||||||||||||||||||
Total | Profit/ Loss(-) | Total Equity | Employees | |||||||||||||||||
Revenue | After Tax for | as of | as of | |||||||||||||||||
as at December 31, 2010 | Ownership | in 20101) | 20101) | 12/31/20101) | 12/31/20102) | |||||||||||||||
Name and Location of Company | % | €(000) | €(000) | €(000) | ||||||||||||||||
SAP sistemi, aplikacije in produkti za obdelavo podatkov d.o.o., Ljubljana, Slovenia | 100.0 | 14,222 | 1,342 | 6,585 | 24 | |||||||||||||||
SAP Slovensko s.r.o., Bratislava, Slovakia | 100.0 | 35,067 | 1,346 | 18,214 | 140 | |||||||||||||||
SAP Svenska Aktiebolag, Stockholm, Sweden | 100.0 | 122,313 | 11,715 | 17,018 | 117 | |||||||||||||||
SAP Türkiye Yazilim Üretim ve Ticaret A.S., Istanbul, Turkey | 100.0 | 46,496 | 2,278 | 16,483 | 96 | |||||||||||||||
SAP UAB (Lithuania), Vilnius, Lithuania | 100.0 | 1,879 | (682 | ) | (463 | ) | 3 | |||||||||||||
SAP West Balkans d.o.o., Belgrade, Serbia | 100.0 | 8,832 | 1,414 | 2,265 | 26 | |||||||||||||||
Set Analyzer UK Limited, London, United Kingdom4) | 100.0 | 0 | 0 | 1,010 | 0 | |||||||||||||||
Sybase (Schweiz) GmbH, Zürich, Switzerland3),4),8) | 100.0 | 586 | (14 | ) | 1,194 | 7 | ||||||||||||||
Sybase (UK) Limited, Maidenhead, United Kingdom3),4),8) | 100.0 | 18,092 | 1,415 | (904 | ) | 205 | ||||||||||||||
Sybase 365 Limited, Maidenhead, United Kingdom3),4),8) | 100.0 | 0 | 0 | 0 | 0 | |||||||||||||||
Sybase ApS, Copenhagen, Denmark3),4),8) | 100.0 | 136 | 7 | 437 | 2 | |||||||||||||||
Sybase Europe B.V., Utrecht, The Netherlands3),4),8) | 100.0 | 65,075 | (11,767 | ) | 12,508 | 48 | ||||||||||||||
Sybase France S.a.r.l., Paris, France3),4),8) | 100.0 | 19,941 | 2,607 | (10,448 | ) | 119 | ||||||||||||||
Sybase Iberia S.L., Madrid, Spain3),4),8) | 100.0 | 5,114 | 139 | (21,723 | ) | 33 | ||||||||||||||
Sybase Italia SRL, Milano, Italy3),4),8) | 100.0 | 3,107 | (129 | ) | (422 | ) | 34 | |||||||||||||
Sybase Luxembourg s.a.r.l, Luxembourg3),4),8) | 100.0 | 99 | (4 | ) | (25 | ) | 0 | |||||||||||||
Sybase Nederland B.V., Utrecht, The Netherlands3),4),8) | 100.0 | 924 | 36 | 4,949 | 15 | |||||||||||||||
Sybase Norge AS, Oslo, Norway3),4),8) | 100.0 | 398 | 15 | 819 | 3 | |||||||||||||||
Sybase Software BVBA/SPRL, Zaventem, Belgium3),4),8) | 100.0 | 1,582 | (7 | ) | 859 | 19 | ||||||||||||||
Sybase South Africa (Proprietary) Limited, Johannesburg, South Africa3),4),8) | 100.0 | 7,788 | 560 | (5,284 | ) | 143 | ||||||||||||||
Sybase Sverige AB, Kista, Sweden3),4),8) | 100.0 | 2,052 | 256 | 1,544 | 25 | |||||||||||||||
Systems Applications Products Africa Region (Proprietary) Limited, Johannesburg, South Africa4) | 100.0 | 31,534 | 2,899 | 17,503 | 13 | |||||||||||||||
Systems Applications Products (Africa) (Proprietary) Limited, Johannesburg, South Africa | 100.0 | 0 | 6,950 | 101,028 | 0 | |||||||||||||||
Systems Applications Products Nigeria Limited, Abuja, Nigeria4) | 100.0 | 12,531 | 953 | 1,696 | 26 | |||||||||||||||
Systems Applications Products South Africa (Proprietary) Limited, Johannesburg, South Africa4) | 89.5 | 177,582 | 14,582 | 36,850 | 308 | |||||||||||||||
TechniData Labs Bulgaria EOOD, Sofia, Bulgaria3),4) | 100.0 | 1,024 | 277 | 652 | 24 | |||||||||||||||
TomorrowNow (UK) Limited, Feltham, United Kingdom4) | 100.0 | 0 | 438 | 27 | 0 | |||||||||||||||
TomorrowNow Nederland B.V., Amsterdam, the Netherlands | 100.0 | 0 | (306 | ) | (3,207 | ) | 1 | |||||||||||||
AMERICAS | ||||||||||||||||||||
110405, Inc., Newtown Square, Pennsylvania, USA | 100.0 | 0 | 0 | 15,636 | 0 | |||||||||||||||
Business Objects Argentina S.R.L., Buenos Aires, Argentina4) | 100.0 | 0 | 0 | 83 | 0 |
F-101
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Number of | ||||||||||||||||||||
Total | Profit/ Loss(-) | Total Equity | Employees | |||||||||||||||||
Revenue | After Tax for | as of | as of | |||||||||||||||||
as at December 31, 2010 | Ownership | in 20101) | 20101) | 12/31/20101) | 12/31/20102) | |||||||||||||||
Name and Location of Company | % | €(000) | €(000) | €(000) | ||||||||||||||||
Business Objects Option, LLC, Wilmington, Delaware, USA4) | 100.0 | 0 | 1,133 | 62,587 | 0 | |||||||||||||||
Clear Standards, Inc., Sterling, Virginia, USA4) | 100.0 | 66 | (1,212 | ) | 16,074 | 0 | ||||||||||||||
Extended Systems, Inc., Boise, Idaho, USA3),4) | 100.0 | 0 | 21 | 17,041 | 0 | |||||||||||||||
Financial Fusion, Inc., Concord, Massachusetts, USA3),4) | 100.0 | 0 | 0 | 0 | 0 | |||||||||||||||
Frictionless Commerce, Inc., Newtown Square, Pennsylvania, USA4) | 100.0 | 2,370 | (241 | ) | 36,063 | 0 | ||||||||||||||
Highdeal, Inc., New York, USA4) | 100.0 | 367 | 87 | (20 | ) | 0 | ||||||||||||||
iAnywhere Solutions Canada Ltd, Waterloo, Canada3),4),8) | 100.0 | 726 | 1,205 | 5,748 | 149 | |||||||||||||||
iAnywhere Solutions Inc., Dublin, California, USA3),4),8) | 100.0 | 16,153 | 8,454 | 102,682 | 91 | |||||||||||||||
INEA Corporation USA, Wilmington, Delaware, USA4) | 100.0 | 0 | 76 | 319 | 0 | |||||||||||||||
Inxight Federal Systems Group, Inc., Wilmington, Delaware, USA4) | 100.0 | 0 | (2 | ) | 97 | 0 | ||||||||||||||
Khimetrics Canada, Inc., Montreal, Canada4) | 100.0 | — | — | — | — | |||||||||||||||
Liberia LLC, Wilmington, Delaware, USA4) | 100.0 | — | — | — | — | |||||||||||||||
Maxware, Inc., Newtown Square, Pennsylvania, USA4) | 100.0 | 227 | (333 | ) | (412 | ) | 0 | |||||||||||||
SAF Simulation, Analysis and Forecasting U.S.A., Inc., Grapevine, Texas, USA4) | 70.9 | 3,988 | 83 | 705 | 13 | |||||||||||||||
SAP America, Inc., Newtown Square, Pennsylvania, USA | 100.0 | 3,167,086 | 356,808 | 1,211,348 | 5,201 | |||||||||||||||
SAP Andina y del Caribe C.A., Caracas, Venezuela7) | 100.0 | 17,379 | (25,867 | ) | 306 | 56 | ||||||||||||||
SAP ARGENTINA S.A., Buenos Aires, Argentina | 100.0 | 119,988 | 3,863 | 20,951 | 490 | |||||||||||||||
SAP Brasil Ltda, São Paulo, Brazil | 100.0 | 407,585 | 15,130 | 111,708 | 1,094 | |||||||||||||||
SAP Canada Inc., Toronto, Canada | 100.0 | 621,852 | 47,357 | 416,334 | 2,053 | |||||||||||||||
SAP Colombia S.A.S., Bogota, Colombia | 100.0 | 60,675 | (31 | ) | (3,628 | ) | 154 | |||||||||||||
SAP Costa Rica, S.A., San José, Costa Rica3),4) | 100.0 | 0 | 0 | 0 | 0 | |||||||||||||||
SAP Financial Inc., Toronto, Canada4) | 100.0 | 0 | 25,297 | 7,680 | 0 | |||||||||||||||
SAP Global Marketing, Inc., New York, USA | 100.0 | 224,592 | 3,042 | 18,234 | 469 | |||||||||||||||
SAP Government Support & Services, Inc., Newtown Square, Pennsylvania, USA4) | 100.0 | 38,482 | 3,237 | 120,886 | 173 | |||||||||||||||
SAP Industries, Inc., Scottsdale, Arizona, USA4),7) | 100.0 | 267,868 | 32,957 | 370,017 | 439 | |||||||||||||||
SAP International, Inc., Miami, Florida, USA4) | 100.0 | 69,959 | 1,017 | 11,710 | 47 | |||||||||||||||
SAP Investments, Inc., Wilmington, Delaware, USA4) | 100.0 | 0 | 11,541 | 616,468 | 0 | |||||||||||||||
SAP LABS, LLC, Palo Alto, California, USA4) | 100.0 | 462,541 | 25,582 | 115,334 | 2,091 | |||||||||||||||
SAP México S.A. de C.V., Mexico City, Mexico | 100.0 | 183,702 | (13,526 | ) | 19,639 | 381 | ||||||||||||||
SAP PERU S.A.C., Inc., Lima, Peru | 100.0 | 20,092 | (1,496 | ) | (4,734 | ) | 47 | |||||||||||||
SAP Public Services, Inc., Washington, D.C., USA4) | 100.0 | 307,374 | 40,608 | 237,316 | 249 | |||||||||||||||
SAP Technologies Inc., Palo Alto, California, USA3),4) | 100.0 | 0 | 0 | 0 | 0 | |||||||||||||||
SAP Ventures Fund I Holdings, LLC, Wilmington, Delaware, USA3) | 100.0 | — | — | — | — |
F-102
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Number of | ||||||||||||||||||||
Total | Profit/ Loss(-) | Total Equity | Employees | |||||||||||||||||
Revenue | After Tax for | as of | as of | |||||||||||||||||
as at December 31, 2010 | Ownership | in 20101) | 20101) | 12/31/20101) | 12/31/20102) | |||||||||||||||
Name and Location of Company | % | €(000) | €(000) | €(000) | ||||||||||||||||
Sybase 365 LLC, Dublin, California, USA3),4),8) | 100.0 | 18,813 | (482 | ) | 96,753 | 139 | ||||||||||||||
Sybase 365 Ltd., Tortola, British Virgin Islands3),4),8) | 100.0 | 0 | 0 | (1,927 | ) | 0 | ||||||||||||||
Sybase Argentina S.A., Buenos Aires, Argentina3),4),8) | 100.0 | 967 | 98 | 1,170 | 14 | |||||||||||||||
Sybase Canada Ltd., Waterloo, Canada3),4),8) | 100.0 | 4,149 | 234 | 8,416 | 61 | |||||||||||||||
Sybase de Mexico, S. De R.L. de C.V., Mexico City, Mexico3),4),8) | 100.0 | 2,047 | 34 | 1,615 | 29 | |||||||||||||||
Sybase do Brasil Software Ltda., Sao Paulo, Brasil3),4),8) | 100.0 | 7,775 | 344 | 1,053 | 30 | |||||||||||||||
Sybase Global LLC, Dublin, California, USA3),4),8) | 100.0 | 0 | 0 | 7,291 | 0 | |||||||||||||||
Sybase Intl Holdings LLC, Dublin, California, USA3),4),8) | 100.0 | 0 | 0 | 11,665 | 0 | |||||||||||||||
Sybase, Inc., Dublin, California, USA3),4),8) | 100.0 | 106,725 | 105,162 | 4,484,785 | 1,216 | |||||||||||||||
TechniData America LLC, Wilmington, Delaware, USA3),4) | 100.0 | 9,878 | (96 | ) | (392 | ) | 64 | |||||||||||||
TomorrowNow, Inc., Bryan, Texas, USA4) | 100.0 | 0 | (1,065,737 | ) | (991,350 | ) | 3 | |||||||||||||
ASIA PACIFIC JAPAN | ||||||||||||||||||||
Beijing Zhang Zhong Hu Dong Xin Si Ju Shu Co. Ltd., Beijing, China3),4) | 100.0 | 810 | 7 | (842 | ) | 7 | ||||||||||||||
Business Objects Asia Pacific Pte Limited, Singapore4) | 100.0 | 0 | 63 | 39,646 | 0 | |||||||||||||||
Business Objects Australia Pty Limited, Sydney, Australia4) | 100.0 | 0 | (15,276 | ) | (51 | ) | 0 | |||||||||||||
Business Objects Malaysia Sdn. Bhd., Kuala Lumpur, Malaysia4) | 100.0 | 0 | 0 | 262 | 0 | |||||||||||||||
Business Objects Software (Shanghai) Co., Ltd., Shanghai, China | 100.0 | 12,724 | 1,052 | 4,834 | 154 | |||||||||||||||
Crystal Decisions (Hong Kong) Limited, Hong Kong, China4) | 100.0 | 0 | (12 | ) | 0 | 0 | ||||||||||||||
iAnywhere K.K., Tokyo, Japan3),4),8) | 100.0 | 3,780 | (40 | ) | (2,602 | ) | 22 | |||||||||||||
PT SAP Indonesia, Jakarta, Indonesia | 100.0 | 34,757 | 4,823 | 22,869 | 41 | |||||||||||||||
PT Sybase 365 Indonesia, Jakarta, Indonesia3),4),8) | 100.0 | 7 | (1 | ) | 230 | 0 | ||||||||||||||
Ruan Lian Technologies (Beijing) Co. Ltd., Beijing, China3),4),8) | 100.0 | 0 | (4 | ) | (1,051 | ) | 1 | |||||||||||||
SAP (Beijing) Software System Co., Ltd., Beijing, China | 100.0 | 235,091 | (6,910 | ) | 59,523 | 2,143 | ||||||||||||||
SAP Asia Pte Limited, Singapore | 100.0 | 199,117 | 8,780 | 25,829 | 651 | |||||||||||||||
SAP Australia Pty Limited, Sydney, Australia | 100.0 | 421,184 | 52,771 | 224,011 | 573 | |||||||||||||||
SAP HONG KONG CO. LIMITED, Hong Kong, China | 100.0 | 29,869 | 1,396 | 4,245 | 57 | |||||||||||||||
SAP INDIA (HOLDING) PTE LTD, Singapore | 100.0 | 0 | (5 | ) | 300 | 0 | ||||||||||||||
SAP INDIA PRIVATE LIMITED, Bangalore, India4) | 100.0 | 257,695 | 25,835 | 172,195 | 1,327 | |||||||||||||||
SAP JAPAN Co., Ltd., Tokyo, Japan | 100.0 | 517,418 | 33,893 | 436,595 | 1,075 | |||||||||||||||
SAP Korea Limited, Seoul, South Korea | 100.0 | 98,741 | 10,141 | 24,010 | 190 | |||||||||||||||
SAP Labs India Private Limited, Bangalore, India | 100.0 | 137,311 | (8,821 | ) | 8,468 | 4,112 | ||||||||||||||
SAP Malaysia Sdn. Bhd., Kuala Lumpur, Malaysia | 100.0 | 68,172 | 10,496 | 28,274 | 119 | |||||||||||||||
SAP New Zealand Limited, Auckland, New Zealand | 100.0 | 43,924 | 5,509 | 28,560 | 34 |
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Number of | ||||||||||||||||||||
Total | Profit/ Loss(-) | Total Equity | Employees | |||||||||||||||||
Revenue | After Tax for | as of | as of | |||||||||||||||||
as at December 31, 2010 | Ownership | in 20101) | 20101) | 12/31/20101) | 12/31/20102) | |||||||||||||||
Name and Location of Company | % | €(000) | €(000) | €(000) | ||||||||||||||||
SAP PHILIPPINES, INC., Makati, Philippines | 100.0 | 25,524 | 1,441 | 7,866 | 36 | |||||||||||||||
SAP R&D Center Korea, Inc., Seoul, South Korea4) | 100.0 | 6,929 | 304 | 15,561 | 70 | |||||||||||||||
SAP SYSTEMS, APPLICATIONS AND PRODUCTS IN DATA PROCESSING (THAILAND) LTD., Bangkok, Thailand10) | 49.0 | 35,621 | 3,964 | 33,228 | 41 | |||||||||||||||
SAP TAIWAN CO., LTD., Taipei, Taiwan | 100.0 | 47,116 | 5,220 | 19,796 | 69 | |||||||||||||||
Sybase (N.Z.) Limited, Wellington, New Zealand3),4),8) | 100.0 | 1,107 | (414 | ) | 3,518 | 5 | ||||||||||||||
Sybase (Singapore) Pte Limited, Singapore3),4),8) | 100.0 | 3,099 | 340 | 1,012 | 183 | |||||||||||||||
Sybase 365 Ltd. (HK), Hong Kong, China3),4),8) | 100.0 | — | — | — | — | |||||||||||||||
Sybase Australia Pty Limited, Sydney, Australia3),4),8) | 100.0 | 6,579 | (772 | ) | 6,053 | 38 | ||||||||||||||
Sybase Hong Kong Limited, Hong Kong, China3),4),8) | 100.0 | 3,461 | (711 | ) | 338 | 77 | ||||||||||||||
Sybase India, Ltd., Dublin, California, USA3),4),8) | 100.0 | 0 | (46 | ) | 1,693 | 0 | ||||||||||||||
Sybase KK, Tokyo, Japan3),4),8) | 100.0 | 10,759 | (3,055 | ) | 1,178 | 58 | ||||||||||||||
Sybase Korea, Ltd, Seoul, South Korea3),4),8) | 100.0 | 4,507 | 128 | 2,557 | 47 | |||||||||||||||
Sybase Philippines Inc., Dublin, California, USA3),4),8) | 100.0 | 0 | (8 | ) | (11 | ) | 0 | |||||||||||||
Sybase Software (China) Co. Ltd., Beijing, China3),4),8) | 100.0 | 7,687 | 1,039 | 13,418 | 383 | |||||||||||||||
Sybase Software (India) Private Ltd, Mumbai, India3),4),8) | 100.0 | 3,257 | 827 | 7,090 | 204 | |||||||||||||||
Sybase Software (Malaysia) Sdn. Bhd., Kuala Lumpur, Malaysia3),4),8) | 100.0 | 1,056 | 58 | 1,532 | 3 | |||||||||||||||
Sybase Taiwan Co. Ltd., Taipei, Taiwan3),4),8) | 100.0 | 2,311 | 118 | 1,458 | 19 | |||||||||||||||
Technidata Asia Pte Limited, Singapore3),4) | 100.0 | 176 | (183 | ) | 97 | 3 | ||||||||||||||
TomorrowNow Australia Pty Limited, Sydney, Australia4) | 100.0 | 0 | 5 | 385 | 0 | |||||||||||||||
TomorrowNow Singapore Pte Limited, Singapore4) | 100.0 | 0 | 0 | 87 | 0 | |||||||||||||||
II. INVESTMENTS IN ASSOCIATES | ||||||||||||||||||||
ArisGlobal Holdings, LLC, Stamford, Connecticut, USA4) | 16.00 | 37,835 | 4,175 | 7,145 | 700 | |||||||||||||||
Crossgate AG, München, Munich | 6.37 | 33,499 | 3,673 | 37,000 | 251 | |||||||||||||||
Greater Pacific Capital (Cayman), L.P., Grand Cayman, Cayman Islands | 5.35 | — | — | — | 0 | |||||||||||||||
Original1 GmbH, Frankfurt am Main, Germany | 40.00 | 39 | (4,085 | ) | 3,900 | 12 | ||||||||||||||
Procurement Negócios Eletrônicos S/A, Rio de Janeiro, Brazil4) | 17.00 | 15,554 | 1,918 | 15,921 | 0 | |||||||||||||||
RIB Software AG, Stuttgart, Germany | 7.15 | — | — | — | 219 | |||||||||||||||
TechniData IT-Service GmbH, Markdorf, Germany4) | 26.00 | 9,442 | 485 | 892 | 85 |
1) | These figures are based on our local IFRS financial statements prior to eliminations resulting from consolidation and therefore do not reflect the contribution of these companies included in the Consolidated Financial Statements. The translation of the equity into group currency is based on period-end closing exchange rates, and on average exchange rates for revenue and net income/loss. | |
2) | As at December 31, 2010, including managing directors, in FTE | |
3) | Consolidated for the first time in 2010 |
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4) | Wholly or majority-owned entity of a subsidiary | |
5) | Entity with profit and loss transfer agreement | |
6) | The remaining shares are held by a trustee | |
7) | Restructured and/or renamed in 2010 | |
8) | The revenue and net income figures are based on local financial statements prior to consolidation. Due to the acquisition of Sybase on July 26, the results are based on IFRS for the period after the acquisition. These figures include acquisition-related adjustments. | |
9) | Pursuant to HGB, section 264 (3) or section 264b, the subsidiaries are exempt from applying certain legal requirements to their statutory stand-alone financial statements including the requirement to prepare notes to the financial statements and a review of operations, the requirement of independent audit and the requirement of public disclosure. | |
10) | The remaining shares are the preference shares without the right to vote. |
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as at December 31, 2010 | ||||
Name and Location of Company | ||||
III. OTHER EQUITY INVESTMENTS (ownership 5 or more percent) | ||||
Aepona Ltd., Belfast, Northern Ireland, United Kingdom | ||||
Apigee Corporation, Santa Clara, California, USA | ||||
Apriso Corporation, Long Beach, California, USA | ||||
Connectiva Systems, Inc., New York, USA | ||||
Deutsches Forschungszentrum für Künstliche Intelligenz GmbH, Kaiserslautern, Germany | ||||
EIT ICT Labs GmbH, Berlin, Germany | ||||
Ignite Technologies, Inc., Frisco, Texas, USA | ||||
InnovationLab GmbH, Heidelberg, Germany | ||||
iTAC Software AG, Dernbach, Germany | ||||
iYogi Holdings Pvt. Ltd., Port Louis, Mauritius | ||||
Lavante, Inc., San Jose, California, USA | ||||
MuleSoft, Inc., San Francisco, California, USA | ||||
MVP Strategic Partnership Fund GmbH & Co. KG, Grünwald, Germany | ||||
OnDeck Capital, Inc., New York, USA | ||||
Onventis GmbH, Stuttgart, Germany | ||||
Post for Systems, Cairo, Egypt | ||||
Powersim Corporation, Herndon, Virginia, USA | ||||
QCLS Corporation, Woodside, California, USA | ||||
Qumu, Inc., San Bruno, California, USA | ||||
Realize Corporation, Tokyo, Japan | ||||
Retail Solutions, Inc. (legal name: T3C, Inc.), Mountain View, California, USA | ||||
Return Path, Inc., New York, USA | ||||
Smart City Planning, Inc., Tokyo, Japan | ||||
SupplyOn AG, Hallbergmoos, Germany | ||||
Technologie- und Gründerzentrum Walldorf Stiftung GmbH, Walldorf, Germany |
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