Exhibit 99.1
SAP Announces Q2 2022 Results
· Cloud revenue up 34% and up 24% at constant currencies to become the largest revenue stream
· Current cloud backlog exceeds €10 billion, up 34% and up 25% at constant currencies
· SAP S/4HANA current cloud backlog extends its growth trend, up 100% and up 87% at constant currencies
· Cloud gross profit up 39% (IFRS), up 38% (non-IFRS) and up 28% (non-IFRS at constant currencies), leading to a strong cloud gross margin expansion
· IFRS operating profit down 32%, non-IFRS operating profit down 13% and down 16% at constant currencies, primarily due to the impact of the war in Ukraine
· SAP reaffirms 2022 revenue and free cash flow outlook, updates operating profit outlook range
in € millions, unless otherwise stated
Christian Klein, CEO: “As our Q2 results | Luka Mucic, CFO: “This quarter again proves | |||
demonstrate, SAP’s portfolio is more relevant than ever. Our transition to the cloud is ahead of schedule and we have exceeded topline expectations, with cloud revenue becoming SAP’s largest revenue stream. Our pipeline is strong, and we are winning market share underpinned by the very strong 100% growth of S/4HANA current cloud backlog.”
| that our strategy is resonating, even in an increasingly challenging external environment. We continued to deliver strong topline growth, exceeding revenue expectations and increasing cloud profitability. This quarter, we have recognized the main impact of the war in Ukraine. We believe that we are now able to capitalize on our substantial growth investments of the last 18 months, by delivering sustained growth and profitability expansion.”
|
Walldorf, Germany – July 21, 2022. SAP SE (NYSE: SAP) today announced its financial results for the second quarter ended June 30, 2022.
Financial Performance |
Group results at a glance – Second quarter 2022 |
IFRS | Non-IFRS1 | ||||||
€ million, unless otherwise stated | Q2 2022 | Q2 2021 | ∆ in % | Q2 2022 | Q2 2021 | ∆ in % | ∆ in % const. curr. |
Cloud revenue | 3,056 | 2,276 | 34 | 3,056 | 2,276 | 34 | 24 |
Software licenses | 426 | 650 | –34 | 426 | 650 | –34 | –38 |
Software support | 2,977 | 2,823 | 5 | 2,977 | 2,823 | 5 | 0 |
Software licenses and support revenue | 3,403 | 3,474 | –2 | 3,403 | 3,474 | –2 | –7 |
Cloud and software revenue | 6,459 | 5,750 | 12 | 6,459 | 5,750 | 12 | 5 |
Total revenue | 7,517 | 6,669 | 13 | 7,517 | 6,669 | 13 | 5 |
Share of more predictable revenue (in %) | 80 | 76 | 4pp | 80 | 76 | 4pp | |
Operating profit (loss) | 673 | 984 | –32 | 1,680 | 1,922 | –13 | –16 |
Profit (loss) after tax | 203 | 1,449 | –86 | 1,093 | 2,214 | –51 | |
Earnings per share - Basic (in €) | 0.29 | 1.15 | –75 | 0.96 | 1.75 | –45 | |
Earnings per share - Diluted (in €) | 0.28 | 1.15 | –75 | ||||
Net cash flows from operating activities | 268 | 686 | –61 | ||||
Free cash flow | –86 | 403 | <-100 | ||||
Number of employees (FTE, June 30) | 110,409 | 103,876 | 6 |
1 For a breakdown of the individual adjustments see table “Non-IFRS Adjustments by Functional Areas” in this Quarterly Statement.
Due to rounding, numbers may not add up precisely.
Group results at a glance – Six months ended June 2022 |
IFRS | Non-IFRS1 | ||||||
€ million, unless otherwise stated | Q1–Q2 2022 | Q1–Q2 2021 | ∆ in % | Q1–Q2 2022 | Q1–Q2 2021 | ∆ in % | ∆ in % const. curr. |
Cloud revenue | 5,876 | 4,421 | 33 | 5,876 | 4,421 | 33 | 25 |
Software licenses | 743 | 1,133 | –34 | 743 | 1,133 | –34 | –38 |
Software support | 5,900 | 5,624 | 5 | 5,900 | 5,624 | 5 | 0 |
Software licenses and support revenue | 6,643 | 6,757 | –2 | 6,643 | 6,757 | –2 | –6 |
Cloud and software revenue | 12,519 | 11,178 | 12 | 12,519 | 11,178 | 12 | 6 |
Total revenue | 14,594 | 13,017 | 12 | 14,594 | 13,017 | 12 | 6 |
Share of more predictable revenue (in %) | 81 | 77 | 4pp | 81 | 77 | 4pp | |
Operating profit (loss) | 1,726 | 1,944 | –11 | 3,358 | 3,660 | –8 | –12 |
Profit (loss) after tax | 835 | 2,519 | ��67 | 2,259 | 3,934 | –43 | |
Earnings per share - Basic (in €) | 0.92 | 2.03 | –55 | 1.96 | 3.14 | –37 | |
Earnings per share - Diluted (in €) | 0.91 | 2.03 | –55 | ||||
Net cash flows from operating activities | 2,750 | 3,771 | –27 | ||||
Free cash flow | 2,079 | 3,251 | –36 | ||||
Number of employees (FTE, June 30) | 110,409 | 103,876 | 6 |
1 For a breakdown of the individual adjustments see table “Non-IFRS Adjustments by Functional Areas” in this Quarterly Statement.
Due to rounding, numbers may not add up precisely
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Cloud Performance – Second quarter 2022 |
IFRS | Non-IFRS1 | ||||
€ millions, unless otherwise stated | Q2 2022 | ∆ in % | Q2 2022 | ∆ in % | ∆ in % constant |
Current Cloud Backlog | |||||
Total2 | NA | NA | 10,403 | 34 | 25 |
Thereof SAP S/4HANA2 | NA | NA | 2,258 | 100 | 87 |
Cloud Revenue | |||||
SaaS3 | 2,409 | 35 | 2,409 | 35 | 24 |
PaaS4 | 389 | 49 | 389 | 49 | 40 |
IaaS5 | 257 | 14 | 257 | 14 | 7 |
Total | 3,056 | 34 | 3,056 | 34 | 24 |
Thereof SAP S/4HANA | 472 | 84 | 472 | 84 | 72 |
Thereof Qualtrics | 279 | 61 | 279 | 61 | 43 |
Cloud Gross Profit | |||||
SaaS3 | 1,753 | 41 | 1,813 | 40 | 28 |
PaaS4 | 310 | 47 | 310 | 47 | 41 |
IaaS5 | 70 | –12 | 73 | –11 | –6 |
Total | 2,132 | 39 | 2,196 | 38 | 28 |
Thereof Qualtrics | 211 | 52 | 247 | 54 | 37 |
Cloud Gross Margin (in %) | |||||
SaaS3 (in %) | 72.8 | 3.1 pp | 75.2 | 2.6 pp | 2.6 pp |
PaaS4 (in %) | 79.5 | –1.2 pp | 79.6 | –1.2 pp | 0.5 pp |
IaaS5 (in %) | 27.1 | –8.1 pp | 28.5 | –8.2 pp | –4.6 pp |
Total | 69.8 | 2.3 pp | 71.9 | 1.8 pp | 2.3 pp |
Thereof Qualtrics | 75.8 | –4.4pp | 88.6 | –3.8 pp | –3.9 pp |
1 For a breakdown of the individual adjustments, see table „Non-IFRS Adjustments by Functional Areas” in this Quarterly Statement.
2 As this is an order entry metric, there is no matching IFRS equivalent.
3 Software as a service
4 Platform as a service
5 Infrastructure as a service
Due to rounding, numbers may not add up precisely
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Cloud Performance – Six months ended June 2022 |
IFRS | Non-IFRS1 | ||||
€ millions, unless otherwise stated | Q1-Q2 2022 | ∆ in % | Q1-Q2 2022 | ∆ in % | ∆ in % constant |
Current Cloud Backlog | |||||
Total2 | NA | NA | 10,403 | 34 | 25 |
Thereof SAP S/4HANA2 | NA | NA | 2,258 | 100 | 87 |
Cloud Revenue | |||||
SaaS3 | 4,644 | 33 | 4,644 | 33 | 25 |
PaaS4 | 739 | 50 | 739 | 50 | 43 |
IaaS5 | 492 | 12 | 492 | 12 | 6 |
Total | 5,876 | 33 | 5,876 | 33 | 25 |
Thereof SAP S/4HANA | 876 | 81 | 876 | 81 | 71 |
Thereof Qualtrics | 548 | 65 | 548 | 65 | 50 |
Cloud Gross Profit | |||||
SaaS3 | 3,343 | 38 | 3,453 | 36 | 27 |
PaaS4 | 583 | 46 | 583 | 46 | 41 |
IaaS5 | 129 | –13 | 134 | –12 | –9 |
Total | 4,054 | 36 | 4,170 | 35 | 27 |
Thereof Qualtrics | 418 | 60 | 489 | 59 | 45 |
Cloud Gross Margin (in %) | |||||
SaaS3 (in %) | 72.0 | 2.3 pp | 74.4 | 1.8 pp | 1.6 pp |
PaaS4 (in %) | 78.8 | –1.9 pp | 78.8 | –2.0 pp | –0.9 pp |
IaaS5 (in %) | 26.2 | –7.6 pp | 27.3 | –7.7 pp | –5.0 pp |
Total | 69.0 | 1.7 pp | 71.0 | 1.2 pp | 1.4 pp |
Thereof Qualtrics | 76.3 | –2.1pp | 89.1 | –3.2 pp | –3.3 pp |
1 For a breakdown of the individual adjustments, see table „Non-IFRS Adjustments by Functional Areas” in this Quarterly Statement.
2 As this is an order entry metric, there is no matching IFRS equivalent.
3 Software as a service
4 Platform as a service
5 Infrastructure as a service
Due to rounding, numbers may not add up precisely
The Q1-Q2 2022 results were also impacted by other effects. For details, please refer to the disclosures on page 31 of this document.
Financial Highlights
Current cloud backlog exceeded €10 billion for the first time and was up 34% to €10.40 billion and up 25% at constant currencies, accelerating from 23% at constant currencies in the first quarter and demonstrating a strong foundation of future cloud revenue.
Driven by double-digit growth across the SaaS and PaaS portfolio, cloud revenue was up 34% to €3.06 billion, up 24% at constant currencies.
Our cloud gross margin was up 2.3 percentage points to 69.8% (IFRS) and up 1.8 percentage points to 71.9% (non-IFRS). This was driven by a strong increase in our SaaS margin, despite increased investments into our next generation cloud delivery program. Revenue growth, alongside cloud gross margin expansion, drove strong cloud gross profit growth of 39% (IFRS), 38% (non-IFRS) and 28% (non-IFRS at constant currencies).
IFRS operating profit decreased 32% to €673 million and IFRS operating margin decreased by 5.8 percentage points to 8.9%. Non-IFRS operating profit was down 13% to €1.68 billion and decreased 16% at constant currencies. Non-IFRS operating margin decreased by 6.5 percentage points to 22.4% and was down by 5.8 percentage points at constant
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currencies. This was mainly driven by reduced contribution from software licenses revenue, as well as significant bad debt expenses related to the war in Ukraine. In addition, IFRS operating profit was affected by restructuring expenses of €130 million, primarily incurred due to the exit from Russia and Belarus. Estimated immediate financial impacts of the war in Ukraine lowered IFRS operating profit growth by 28 percentage points, non-IFRS operating profit growth by 8 percentage points and non-IFRS operating profit growth at constant currencies by 6 percentage points.
IFRS earnings per share decreased 75% to €0.29 and non-IFRS earnings per share decreased 45% to €0.96. The year-over-year decline of earnings per share reflects a contribution to financial income by Sapphire Ventures that, due to current market conditions, was lower than in the same period last year. Our effective tax rate was 62.2% (IFRS) and 29.3% (non-IFRS). The year-over-year effective tax rate increase mainly resulted from changes in tax exempt income and non-deductible expenses. For non-IFRS, the changes in non-deductible expenses do not apply due to respective adjustments of pre-tax figures.
Free cash flow for the first six months was down 36% to €2.08 billion. The decrease versus last year is mainly attributable to the development of profitability and impacts from working capital due to SAP’s continuing move to the cloud. In the second half-year, we expect a more favorable cash flow development due to lower cash taxes and better profitability. We are therefore reiterating our free cash flow outlook for the year.
On January 13, SAP announced a new share repurchase program to support the transition of SAP’s share-based compensation programs to equity settlement, which was completed on April 29. SAP had repurchased 10,004,763 shares at an average price of €99.63 with a purchased value of approximately €997 million. In addition, on July 21, SAP announced another share buyback program of approximately €500 million. Repurchased shares will primarily be used to service awards granted under share-based compensation plans for employees.
Impact of War in Ukraine
In the first six months, SAP’s business was impacted by the war in Ukraine and SAP’s decision to wind down its business operations in Russia and Belarus.
In the second quarter current cloud backlog was approximately €64 million lower due to the termination of existing cloud engagements, reducing current cloud backlog growth by approximately 1 percentage point at constant currencies. IFRS and non-IFRS operating profit were lowered mainly due to reduced software licenses and support revenues and bad debt reserves recorded on trade receivables. IFRS operating profit was additionally affected by restructuring expenses of approximately €120 million incurred due to severance payments to employees in Russia and Belarus and further impairments of assets. The increase of restructuring expenses versus prior expectations is due to the appreciation of the Russian ruble over the past quarter. The overall impact on IFRS operating profit was approximately €280 million (first six months: approximately €350 million) and on non-IFRS operating profit approximately €160 million (first six months: approximately €230 million).
For the fiscal year, we expect a total revenue impact of approximately €300 million at constant currencies from lack of new business and discontinuation of existing business. For non-IFRS operating profit we expect an impact of approximately €350 million at constant currencies from the revenue gaps mentioned above and other expense items.
Other impacts due to this rapidly evolving situation are currently unknown and could potentially subject our business to materially adverse consequences should the situation escalate beyond its current scope.
Business Highlights |
More than 650 customers chose SAP S/4HANA in the quarter, increasing total adoption to approximately 20,000 customers, up 15% year over year, of which more than 14,500 are live. In the second quarter, more than 60% of the additional SAP S/4HANA customers were net new. In the second quarter, customers around the globe chose “RISE with SAP” to drive end-to-end business transformation, including ABB Information Systems, Bridgestone Australia, Capitec Bank, EisnerAmper, Hisense Group, Mitsubishi Materials Corporation, Moderna, Pitney Bowes, RWE, Sumitomo Rubber Industries, Zoomlion. Customers continue to expand their SAP landscape: Microsoft invested in “RISE with SAP”, while GlobalFoundries, HeidelbergCement, Malaysia Airlines, and Mapletree Investments combined the “RISE with SAP” offering with further solutions.
Key customer wins across SAP’s solution portfolio included: ALTANA, Analog Devices, ASUS, BeiGene, Coop Genossenschaft, Corning, Ericsson, Fisker Inc., FUNKE Mediengruppe, Kyndryl, Moët Hennessy, Persán, Positivo |
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Tecnologia, Sportradar, Votorantim, Wieland-Werke. Antonio Puig, CONA Services, HCL Technologies, and Wittenstein all went live on SAP solutions in the second quarter.
SAP’s cloud revenue performance for the quarter was strong across all regions. Germany had an outstanding cloud revenue performance while the U.S., Brazil, Japan, India and Switzerland were particularly strong.
On May 4, SAP and Google Cloud announced an expansion of their relationship, unveiling new integrations between Google Workspace and SAP’s flagship cloud ERP, SAP S/4HANA Cloud.
On May 11, SAP and IBM announced the latest milestone in their long-standing partnership as IBM undertakes one of the world’s largest corporate transformation projects based on SAP ERP software, designed to fuel the company’s growth and better support its clients.
On May 18, SAP announced that the Annual General Meeting of Shareholders of SAP SE approved all proposals of the Executive Board and Supervisory Board. Prof. Dr. h. c. mult. Hasso Plattner, Dr. Rouven Westphal and Dr. Gunnar Wiedenfels were reelected and Jennifer Xin-Zhe Li was elected to the Supervisory Board. With these elections, the Supervisory Board has reached gender parity. In addition, the compensation report was approved and to ensure a smooth transition between auditors, KPMG, for fiscal year 2022, and the new auditor, BDO, for fiscal year 2023, were elected. Furthermore, the dividend proposal of €2.45 per share for fiscal year 2021 was approved. This amount includes a special dividend of €0.50 to mark the Company’s 50th anniversary. |
Segment Results at a Glance
At the beginning of 2022, the Services segment was integrated into the former Applications, Technology & Support segment which was re-named to Applications, Technology & Services.
Therefore, SAP now has two reportable segments: the Applications, Technology & Services segment and the Qualtrics segment.
In addition, certain marketing costs that we primarily incur for product and solution-specific activities in the Applications, Technology & Services segment are now presented in the results of this segment and are no longer allocated to SAP’s corporate functions.
Segment Performance Second Quarter 2022 |
€ million, unless otherwise stated (Non-IFRS) | Applications, Technology & Services1 | Qualtrics | ||||
Actual Currency | ∆ in % | ∆ in % const. curr. | Actual Currency | ∆ in % | ∆ in % const. curr. | |
Cloud revenue | 2,704 | 31 | 22 | 279 | 61 | 43 |
Segment revenue | 7,109 | 11 | 4 | 330 | 57 | 39 |
Segment profit (loss) | 2,094 | –11 | –15 | 17 | 25 | 45 |
Cloud gross margin (in %) | 69.5 | 1.3pp | 2.0pp | 88.6 | –3.8pp | –3.9pp |
Segment margin (in %) | 29.5 | –7.4pp | –6.7pp | 5.1 | –1.3pp | 0.2pp |
1 Segment information for comparative prior periods were restated to conform with the new segment composition.
SAP’s two reportable segments showed the following performance:
Applications, Technology & Services (AT&S)
Segment revenue in AT&S was up 11% to €7.11 billion year over year, up 4% at constant currencies. Segment performance was mainly due to strong Cloud Revenue growth, driven by SAP S/4HANA as well as Business Technology Platform. Software licenses revenue decreased due to the shift to the cloud as more customers are adopting our ‘RISE with SAP’ offering. Segment support revenue was up 5% to €2.98 billion year over year and flat at constant currencies.
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Qualtrics
Qualtrics segment revenue was up 57% to €330 million year over year, up 39% at constant currencies. The continued strong growth was driven by robust renewal rates and expansions. LINE Plus, Merck KGaA, the New York City Department of Education, PGA TOUR, PNC Financial Services Group, Progress Residential, Scarlet Health, Tata Digital, Toyota North America, and Venues NSW, among others, selected Qualtrics Experience Management Solutions.
Business Outlook 2022 |
SAP is executing on its cloud-led strategy, which is driving accelerating cloud growth through both new business and cloud adoption by existing customers. The pace and scale of SAP’s cloud momentum places the Company well on track towards its mid-term ambition.
Financial Outlook
For 2022, SAP now expects:
· | €7.6 – 7.9 billion non-IFRS operating profit at constant currencies (2021: €8.23 billion), down 4% to 8% at constant currencies. The updated non-IFRS operating profit outlook range reflects the expected 2022 non-IFRS operating profit impact of approximately €350 million at constant currencies from the war in Ukraine and a potential continued marked decline of software licenses revenue. The previous range was €7.8 – 8.25 billion at constant currencies. |
Despite the expected total revenue impact of approximately €300 million at constant currencies of the war in Ukraine and a further accelerated move of our customers from upfront software licenses revenue to the cloud in the current macro-environment, SAP continues to expect for 2022:
· | €11.55 – 11.85 billion cloud revenue at constant currencies (2021: €9.42 billion), up 23% to 26% at constant currencies. |
· | €25.0 – 25.5 billion cloud and software revenue at constant currencies (2021: €24.08 billion), up 4% to 6% at constant currencies. |
· | The share of more predictable revenue (defined as the total of cloud revenue and software support revenue) is expected to reach approximately 78% (2021: 75%). |
· | Free cash flow above €4.5 billion (2021: €5.01 billion). |
SAP is also updating its full-year 2022 effective tax rate outlook (IFRS) to 34.0% to 38.0% (previously: 28.0% to 32.0%). The adjustment mainly results from an updated projection of non-deductible expenses and of the lower 2022 financial income contribution of Sapphire Ventures given current market conditions. As the updated non-deductible expenses are not included in non-IFRS, SAP continues to anticipate a full-year 2022 effective tax rate (non-IFRS) of 23.0% to 27.0% but expects to be at the upper end of this range.
While SAP’s full-year 2022 business outlook is at constant currencies, actual currency reported figures are expected to be impacted by currency exchange rate fluctuations as the Company progresses through the year. See the table below for the Q3 and FY 2022 expected currency impacts.
Expected Currency Impact Assuming June 2022 Rates Apply for the Rest of the Year |
In percentage points | Q3 2022 | FY 2022 |
Cloud revenue growth | +8pp to +10pp | +7pp to +9pp |
Cloud and software revenue growth | +5pp to +7pp | +4pp to +6pp |
Operating profit growth (non-IFRS) | +3.5pp to +5.5pp | +2.5pp to +4.5pp |
Non-Financial Outlook
SAP now expects the Employee Engagement Index to be in a range of 80% to 84% in 2022 (previously: 84% to 86%).
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In 2022, SAP continues to expect:
■ | a Customer Net Promoter Score of 11 to 15 (2021: 10) |
■ | Net carbon emissions of 70 kt (2021: 110 kt) |
Ambition 2025
SAP reiterates its mid-term ambition published in its Q3 2020 Quarterly Statement including the commitment of double-digit growth of operating profit in 2023. In light of its strong cloud momentum and most recent favorable currency exchange rates development, SAP expects to update its mid-term ambition in the upcoming quarters.
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Additional Information |
This press release and all information therein is preliminary and unaudited.
SAP Performance Measures
For more information about our key growth metrics and performance measures, their calculation, their usefulness, and their limitation, please refer to the following document on our Investor Relations website: SAP Performance Measures.
Webcast
SAP senior management will host a financial analyst conference call on Thursday, July 21st at 2:00 PM (CET) / 1:00 PM (GMT) / 8:00 AM (Eastern) / 5:00 AM (Pacific). The conference will be webcast live on the Company’s website at www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the first quarter can be found at www.sap.com/investor.
About SAP
SAP’s strategy is to help every business run as an intelligent enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: SAP customers generate 87% of total global commerce. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers’ businesses into intelligent enterprises. SAP helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want – without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, SAP helps the world run better and improve people’s lives. For more information, visit www.sap.com.
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Contents
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Financial and Non-Financial Key Facts (IFRS and Non-IFRS)
€ millions, unless otherwise stated | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | TY 2021 | Q1 2022 | Q2 2022 |
Revenues | |||||||
Cloud | 2,145 | 2,276 | 2,386 | 2,611 | 9,418 | 2,820 | 3,056 |
% change – yoy | 7 | 11 | 20 | 28 | 17 | 31 | 34 |
% change constant currency – yoy | 13 | 17 | 20 | 24 | 19 | 25 | 24 |
SAP S/4HANA Cloud | 227 | 257 | 276 | 329 | 1,090 | 404 | 472 |
% change – yoy | 36 | 33 | 46 | 65 | 46 | 78 | 84 |
% change constant currency – yoy | 43 | 39 | 46 | 61 | 47 | 71 | 72 |
Software licenses | 483 | 650 | 657 | 1,458 | 3,248 | 317 | 426 |
% change – yoy | 7 | –16 | –8 | –14 | –11 | –34 | –34 |
% change constant currency – yoy | 11 | –13 | –8 | –17 | –11 | –36 | –38 |
Software support | 2,801 | 2,823 | 2,867 | 2,920 | 11,412 | 2,923 | 2,977 |
% change – yoy | –5 | –2 | 1 | 3 | –1 | 4 | 5 |
% change constant currency – yoy | 0 | 1 | 1 | 1 | 1 | 1 | 0 |
Software licenses and support | 3,283 | 3,474 | 3,524 | 4,379 | 14,660 | 3,240 | 3,403 |
% change – yoy | –3 | –5 | –1 | –4 | –3 | –1 | –2 |
% change constant currency – yoy | 1 | –2 | –1 | –6 | –2 | –4 | –7 |
Cloud and software | 5,428 | 5,750 | 5,910 | 6,990 | 24,078 | 6,060 | 6,459 |
% change – yoy | 1 | 1 | 7 | 6 | 4 | 12 | 12 |
% change constant currency – yoy | 6 | 5 | 6 | 3 | 5 | 7 | 5 |
Total revenue | 6,348 | 6,669 | 6,845 | 7,981 | 27,842 | 7,077 | 7,517 |
% change – yoy | –3 | –1 | 5 | 6 | 2 | 11 | 13 |
% change constant currency – yoy | 2 | 3 | 5 | 3 | 3 | 7 | 5 |
Share of more predictable revenue (in %) | 78 | 76 | 77 | 69 | 75 | 81 | 80 |
Profits | |||||||
Operating profit (loss) (IFRS) | 960 | 984 | 1,249 | 1,463 | 4,656 | 1,053 | 673 |
Operating profit (loss) (non-IFRS) | 1,738 | 1,922 | 2,102 | 2,468 | 8,230 | 1,677 | 1,680 |
% change | 17 | –2 | 2 | –11 | –1 | –4 | –13 |
% change constant currency | 24 | 3 | 2 | –12 | 1 | –7 | –16 |
Profit (loss) after tax (IFRS) | 1,070 | 1,449 | 1,418 | 1,440 | 5,376 | 632 | 203 |
Profit (loss) after tax (non-IFRS) | 1,720 | 2,214 | 2,129 | 2,274 | 8,337 | 1,166 | 1,093 |
% change | 70 | 59 | 1 | 12 | 28 | –32 | –51 |
Margins | |||||||
Cloud gross margin (IFRS, in %) | 67.2 | 67.5 | 67.0 | 66.6 | 67.0 | 68.2 | 69.8 |
Cloud gross margin (non-IFRS, in %) | 69.5 | 70.0 | 69.4 | 69.0 | 69.5 | 70.0 | 71.9 |
Software license and support gross margin (IFRS, in %) | 85.7 | 86.5 | 87.1 | 87.9 | 86.9 | 87.0 | 87.7 |
Software license and support gross margin (non-IFRS, in %) | 86.3 | 87.3 | 87.8 | 88.5 | 87.6 | 87.5 | 88.5 |
Cloud and software gross margin (IFRS, in %) | 78.4 | 79.0 | 79.0 | 79.9 | 79.1 | 78.2 | 79.2 |
Cloud and software gross margin (non-IFRS, in %) | 79.7 | 80.5 | 80.4 | 81.2 | 80.5 | 79.4 | 80.6 |
Gross margin (IFRS, in %) | 70.3 | 70.8 | 71.4 | 73.0 | 71.5 | 70.3 | 70.7 |
Gross margin (non-IFRS, in %) | 72.3 | 73.4 | 73.6 | 75.1 | 73.7 | 72.0 | 73.1 |
Operating margin (IFRS, in %) | 15.1 | 14.8 | 18.2 | 18.3 | 16.7 | 14.9 | 8.9 |
Operating margin (non-IFRS, in %) | 27.4 | 28.8 | 30.7 | 30.9 | 29.6 | 23.7 | 22.4 |
ATS segment – Cloud gross margin (in %) | 67.7 | 68.2 | 67.6 | 66.8 | 67.6 | 67.8 | 69.5 |
ATS segment – Segment gross margin (in %) | 72.8 | 73.9 | 74.4 | 74.8 | 74.0 | 71.8 | 72.9 |
ATS segment – Segment margin in % | 35.4 | 36.8 | 38.2 | 36.9 | 36.8 | 30.7 | 29.5 |
Qualtrics segment – Cloud gross margin (in %) | 92.2 | 92.4 | 91.6 | 90.2 | 91.5 | 89.6 | 88.6 |
Qualtrics segment – Segment gross margin (in %) | 79.5 | 80.3 | 80.7 | 78.1 | 79.6 | 78.9 | 77.5 |
Qualtrics segment – Segment margin (in %) | 6.3 | 6.3 | 6.0 | 1.6 | 4.8 | 3.1 | 5.1 |
11/31
Key Profit Ratios | |||||||
Effective tax rate (IFRS, in %) | 20.0 | 19.7 | 18.9 | 26.4 | 21.5 | 33.1 | 62.2 |
Effective tax rate (non-IFRS, in %) | 18.7 | 19.2 | 18.2 | 23.2 | 20.0 | 25.7 | 29.3 |
Earnings per share, basic (IFRS, in €) | 0.88 | 1.15 | 1.19 | 1.23 | 4.46 | 0.63 | 0.29 |
Earnings per share, basic (non-IFRS, in €) | 1.40 | 1.75 | 1.74 | 1.85 | 6.73 | 1.00 | 0.96 |
Order Entry and current cloud backlog | |||||||
Current cloud backlog | 7,628 | 7,766 | 8,171 | 9,447 | 9,447 | 9,731 | 10,403 |
% change – yoy | 15 | 17 | 24 | 32 | 32 | 28 | 34 |
% change constant currency – yoy | 19 | 20 | 22 | 26 | 26 | 23 | 25 |
SAP S/4HANA Current cloud backlog | 1,036 | 1,130 | 1,283 | 1,707 | 1,707 | 1,925 | 2,258 |
% change – yoy | 39 | 45 | 60 | 84 | 84 | 86 | 100 |
% change constant currency – yoy | 43 | 48 | 58 | 76 | 76 | 79 | 87 |
Share of cloud orders greater than €5 million based on total cloud order entry volume (in %)3 | 25 | 29 | 38 | 45 | 41 | 41 | 48 |
Share of cloud orders smaller than €1 million based on total cloud order entry volume (in %)3 | 45 | 38 | 35 | 27 | 28 | 31 | 28 |
Share of orders greater than €5 million based on total software order entry volume (in %) | 23 | 22 | 31 | 24 | 25 | 40 | 33 |
Share of orders smaller than €1 million based on total software order entry volume (in %) | 42 | 43 | 41 | 36 | 39 | 33 | 40 |
Liquidity and Cash Flow | |||||||
Net cash flows from operating activities | 3,085 | 686 | 1,183 | 1,269 | 6,223 | 2,482 | 268 |
Capital expenditure | –153 | –191 | –202 | –255 | –800 | –221 | –235 |
Payments of lease liabilities | –84 | –92 | –99 | –98 | –374 | –95 | –120 |
Free cash flow | 2,848 | 403 | 881 | 916 | 5,049 | 2,165 | –86 |
% of total revenue | 45 | 6 | 13 | 11 | 18 | 31 | –1 |
% of profit after tax (IFRS) | 266 | 28 | 62 | 64 | 94 | 343 | –42 |
Group liquidity | 11,573 | 8,548 | 9,375 | 11,530 | 11,530 | 11,283 | 8,256 |
Financial debt (–) | –14,230 | –13,116 | –12,994 | –13,094 | –13,094 | –12,171 | –12,282 |
Net debt (–) | –2,658 | –4,568 | –3,619 | –1,563 | –1,563 | –888 | –4,026 |
Financial Position | |||||||
Cash and cash equivalents | 10,332 | 7,764 | 7,943 | 8,898 | 8,898 | 8,942 | 7,492 |
Goodwill | 29,328 | 29,020 | 29,600 | 31,090 | 31,090 | 32,172 | 33,913 |
Total assets | 66,477 | 63,075 | 65,029 | 71,169 | 71,169 | 76,387 | 75,575 |
Contract liabilities (current) | 6,568 | 5,958 | 4,627 | 4,431 | 4,431 | 7,630 | 6,883 |
Equity ratio (total equity in % of total assets) | 52 | 54 | 57 | 58 | 58 | 56 | 57 |
Non-Financials | |||||||
Number of employees (quarter end)1 | 103,142 | 103,876 | 105,015 | 107,415 | 107,415 | 109,798 | 110,409 |
Employee retention (in %, rolling 12 months) | 95.4 | 94.8 | 93.7 | 92.8 | 92.8 | 92.1 | 91.6 |
Women in management (in %, quarter end) | 27.6 | 27.9 | 28.2 | 28.3 | 28.3 | 28.6 | 28.8 |
Net carbon emissions2 (in kilotons) | 30 | 20 | 25 | 35 | 110 | 20 | 25 |
1 In full-time equivalents
2 In CO2 equivalents
3 To conform to refined calculation logic prior quarters have been adjusted
Due to rounding, numbers may not add up precisely.
12/31
Primary Financial Statements of SAP Group (IFRS)
(A) Consolidated Income Statements
(A.1) Consolidated Income Statements – Quarter
€ millions, unless otherwise stated | Q2 2022 | Q2 2021 | ∆ in % | |
Cloud | 3,056 | 2,276 | 34 | |
Software licenses | 426 | 650 | –34 | |
Software support | 2,977 | 2,823 | 5 | |
Software licenses and support | 3,403 | 3,474 | –2 | |
Cloud and software | 6,459 | 5,750 | 12 | |
Services | 1,057 | 920 | 15 | |
Total revenue | 7,517 | 6,669 | 13 | |
Cost of cloud | –924 | –740 | 25 | |
Cost of software licenses and support | –419 | –468 | –10 | |
Cost of cloud and software | –1,343 | –1,208 | 11 | |
Cost of services | –856 | –738 | 16 | |
Total cost of revenue | –2,199 | –1,946 | 13 | |
Gross profit | 5,318 | 4,723 | 13 | |
Research and development | –1,545 | –1,306 | 18 | |
Sales and marketing | –2,343 | –1,828 | 28 | |
General and administration | –530 | –593 | –11 | |
Restructuring | –130 | –6 | >100 | |
Other operating income/expense, net | –98 | –5 | >100 | |
Total operating expenses | –6,844 | –5,685 | 20 | |
Operating profit (loss) | 673 | 984 | –32 | |
Other non-operating income/expense, net | –17 | –33 | –50 | |
Finance income | 178 | 1,002 | –82 | |
Finance costs | –297 | –149 | 99 | |
Financial income, net | –118 | 853 | <-100 | |
Profit (loss) before tax | 538 | 1,804 | –70 | |
Income tax expense | –335 | –355 | –6 | |
Profit (loss) after tax | 203 | 1,449 | –86 | |
Attributable to owners of parent | 334 | 1,356 | –75 | |
Attributable to non-controlling interests | –131 | 93 | <-100 | |
Earnings per share, basic (in €)1 | 0.29 | 1.15 | –75 | |
Earnings per share, diluted (in €)1 | 0.28 | 1.15 | –75 |
1 For the three months ended June 30, 2022 and 2021, the weighted average number of shares was 1,171 million (diluted 1,174 million) and 1,180 million (diluted: 1,180 million), respectively (treasury stock excluded).
Due to rounding, numbers may not add up precisely.
13/31
(A.2) Consolidated Income Statements – Year-to-Date
€ millions, unless otherwise stated | Q1–Q2 2022 | Q1–Q2 2021 | ∆ in % | |
Cloud | 5,876 | 4,421 | 33 | |
Software licenses | 743 | 1,133 | –34 | |
Software support | 5,900 | 5,624 | 5 | |
Software licenses and support | 6,643 | 6,757 | –2 | |
Cloud and software | 12,519 | 11,178 | 12 | |
Services | 2,075 | 1,839 | 13 | |
Total revenue | 14,594 | 13,017 | 12 | |
Cost of cloud | –1,822 | –1,444 | 26 | |
Cost of software licenses and support | –841 | –939 | –10 | |
Cost of cloud and software | –2,663 | –2,383 | 12 | |
Cost of services | –1,635 | –1,447 | 13 | |
Total cost of revenue | –4,298 | –3,830 | 12 | |
Gross profit | 10,296 | 9,187 | 12 | |
Research and development | –2,970 | –2,478 | 20 | |
Sales and marketing | –4,330 | –3,491 | 24 | |
General and administration | –1,034 | –1,098 | –6 | |
Restructuring | –119 | –164 | –27 | |
Other operating income/expense, net | –118 | –12 | >100 | |
Total operating expenses | –12,868 | –11,073 | 16 | |
Operating profit (loss) | 1,726 | 1,944 | –11 | |
Other non-operating income/expense, net | –69 | 29 | <-100 | |
Finance income | 521 | 1,549 | –66 | |
Finance costs | –695 | –381 | 82 | |
Financial income, net | –174 | 1,168 | <-100 | |
Profit (loss) before tax | 1,483 | 3,141 | –53 | |
Income tax expense | –648 | –622 | 4 | |
Profit (loss) after tax | 835 | 2,519 | –67 | |
Attributable to owners of parent | 1,074 | 2,396 | –55 | |
Attributable to non-controlling interests | –239 | 123 | <-100 | |
Earnings per share, basic (in €)1 | 0.92 | 2.03 | –55 | |
Earnings per share, diluted (in €)1 | 0.91 | 2.03 | –55 |
1 For the six months ended June 30, 2022 and 2021, the weighted average number of shares was 1,174 million (diluted: 1,174 million) and 1,180 million (diluted: 1,180 million), respectively (treasury stock excluded).
Due to rounding, numbers may not add up precisely.
14/31
(B) | Consolidated Statements of Financial Position |
as at 06/30/2022 and 12/31/2021 | ||
€ millions | 2022 | 2021 |
Cash and cash equivalents | 7,492 | 8,898 |
Other financial assets | 987 | 2,758 |
Trade and other receivables | 8,674 | 6,352 |
Other non-financial assets | 2,112 | 1,633 |
Tax assets | 856 | 403 |
Total current assets | 20,121 | 20,044 |
Goodwill | 33,913 | 31,090 |
Intangible assets | 4,295 | 3,965 |
Property, plant, and equipment | 4,996 | 4,977 |
Other financial assets | 6,920 | 6,275 |
Trade and other receivables | 113 | 147 |
Other non-financial assets | 3,010 | 2,628 |
Tax assets | 307 | 263 |
Deferred tax assets | 1,901 | 1,779 |
Total non-current assets | 55,454 | 51,125 |
Total assets | 75,575 | 71,169 |
€ millions | 2022 | 2021 |
Trade and other payables | 1,939 | 1,580 |
Tax liabilities | 317 | 304 |
Financial liabilities | 8,150 | 4,528 |
Other non-financial liabilities | 3,458 | 5,203 |
Provisions | 148 | 89 |
Contract liabilities | 6,883 | 4,431 |
Total current liabilities | 20,894 | 16,136 |
Trade and other payables | 104 | 122 |
Tax liabilities | 903 | 827 |
Financial liabilities | 9,515 | 11,042 |
Other non-financial liabilities | 657 | 860 |
Provisions | 382 | 355 |
Deferred tax liabilities | 300 | 291 |
Contract liabilities | 33 | 13 |
Total non-current liabilities | 11,894 | 13,510 |
Total liabilities | 32,788 | 29,645 |
Issued capital | 1,229 | 1,229 |
Share premium | 2,547 | 1,918 |
Retained earnings | 35,109 | 37,022 |
Other components of equity | 5,031 | 1,756 |
Treasury shares | –4,072 | –3,072 |
Equity attributable to owners of parent | 39,844 | 38,852 |
Non-controlling interests | 2,943 | 2,670 |
Total equity | 42,787 | 41,523 |
Total equity and liabilities | 75,575 | 71,169 |
Due to rounding, numbers may not add up precisely.
15/31
(C) | Consolidated Statements of Cash Flows |
€ millions | Q1–Q2 2022 | Q1–Q2 2021 |
Profit (loss) after tax | 835 | 2,519 |
Adjustments to reconcile profit (loss) after tax to net cash flows from operating activities: | ||
Depreciation and amortization | 933 | 871 |
Share-based payment expense | 1,184 | 1,256 |
Income tax expense | 648 | 622 |
Financial income, net | 174 | –1,168 |
Decrease/increase in allowances on trade receivables | 108 | –11 |
Other adjustments for non-cash items | 7 | 110 |
Decrease/increase in trade and other receivables | 865 | 1,074 |
Decrease/increase in other assets | –621 | –229 |
Increase/decrease in trade payables, provisions, and other liabilities | –1,312 | –1,024 |
Increase/decrease in contract liabilities | 2,133 | 1,888 |
Share-based payments | –918 | –779 |
Interest paid | –140 | –125 |
Interest received | 45 | 21 |
Income taxes paid, net of refunds | –1,192 | –1,254 |
Net cash flows from operating activities | 2,750 | 3,771 |
Business combinations, net of cash and cash equivalents acquired | –627 | –995 |
Purchase of intangible assets or property, plant, and equipment | –456 | –344 |
Proceeds from sales of intangible assets or property, plant, and equipment | 51 | 40 |
Purchase of equity or debt instruments of other entities | –2,256 | –754 |
Proceeds from sales of equity or debt instruments of other entities | 4,005 | 1,325 |
Cash flows from advances (supply chain financing)1 | –1,432 | 0 |
Net cash flows from investing activities | –715 | –728 |
Dividends paid | –2,865 | –2,182 |
Dividends paid on non-controlling interests | –3 | –16 |
Purchase of treasury shares | –1,000 | 0 |
Proceeds from changes in ownership interests in subsidiaries that do not result in the loss of control | 21 | 1,847 |
Payments for taxes related to net share settlement of equity awards | –224 | 0 |
Proceeds from borrowings | 38 | 1,600 |
Repayments of borrowings | –944 | –1,802 |
Payments of lease liabilities | –215 | –176 |
Cash flows with funders (supply chain financing)1 | 1,409 | 0 |
Net cash flows from financing activities | –3,782 | –729 |
Effect of foreign currency rates on cash and cash equivalents | 341 | 139 |
Net decrease/increase in cash and cash equivalents | –1,406 | 2,453 |
Cash and cash equivalents at the beginning of the period | 8,898 | 5,311 |
Cash and cash equivalents at the end of the period | 7,492 | 7,764 |
1 For more information, see Note (M) in this Quarterly Statement or Note (D.1) in the SAP Half-Year Report 2022. | ||
Due to rounding, numbers may not add up precisely. |
16/31
(D) | Basis of Non-IFRS Presentation |
We disclose certain financial measures such as revenue (non-IFRS), expense (non-IFRS), and profit measures (non-IFRS) that are not prepared in accordance with IFRS and are therefore considered non-IFRS financial measures.
For a more detailed description of all of SAP’s non-IFRS measures and their limitations as well as our constant currency and free cash flow figures, see Explanation of Non-IFRS Measures online.
17/31
(E) | Reconciliation from Non-IFRS Numbers to IFRS Numbers |
(E.1) | Reconciliation from Non-IFRS Numbers to IFRS Numbers – Quarter |
€ millions, unless otherwise stated | Q2 2022 | Q2 2021 | ∆ in % | ||||||||
IFRS | Adj. | Non- IFRS | Currency Impact | Non-IFRS Constant Currency | IFRS | Adj. | Non- IFRS | IFRS | Non- IFRS | Non-IFRS Constant Currency1 | |
Revenue Numbers | |||||||||||
Cloud | 3,056 | 3,056 | –232 | 2,824 | 2,276 | 2,276 | 34 | 34 | 24 | ||
Software licenses | 426 | 426 | –25 | 401 | 650 | 650 | –34 | –34 | –38 | ||
Software support | 2,977 | 2,977 | –158 | 2,820 | 2,823 | 2,823 | 5 | 5 | 0 | ||
Software licenses and support | 3,403 | 3,403 | –183 | 3,221 | 3,474 | 3,474 | –2 | –2 | –7 | ||
Cloud and software | 6,459 | 6,459 | –414 | 6,045 | 5,750 | 5,750 | 12 | 12 | 5 | ||
Services | 1,057 | 1,057 | –70 | 987 | 920 | 920 | 15 | 15 | 7 | ||
Total revenue | 7,517 | 7,517 | –484 | 7,033 | 6,669 | 6,669 | 13 | 13 | 5 | ||
Operating Expense Numbers | |||||||||||
Cost of cloud | –924 | 64 | –860 | –740 | 57 | –682 | 25 | 26 | |||
Cost of software licenses and support | –419 | 28 | –391 | –468 | 29 | –439 | –10 | –11 | |||
Cost of cloud and software | –1,343 | 92 | –1,252 | –1,208 | 86 | –1,122 | 11 | 12 | |||
Cost of services | –856 | 87 | –769 | –738 | 87 | –651 | 16 | 18 | |||
Total cost of revenue | –2,199 | 179 | –2,020 | –1,946 | 173 | –1,773 | 13 | 14 | |||
Gross profit | 5,318 | 179 | 5,496 | 4,723 | 173 | 4,896 | 13 | 12 | |||
Research and development | –1,545 | 181 | –1,363 | –1,306 | 157 | –1,149 | 18 | 19 | |||
Sales and marketing | –2,343 | 315 | –2,028 | –1,828 | 294 | –1,534 | 28 | 32 | |||
General and administration | –530 | 203 | –326 | –593 | 307 | –286 | –11 | 14 | |||
Restructuring | –130 | 130 | 0 | –6 | 6 | 0 | >100 | NA | |||
Other operating income/expense, net | –98 | 0 | –98 | –5 | 0 | –5 | >100 | >100 | |||
Total operating expenses | –6,844 | 1,008 | –5,836 | 419 | –5,417 | –5,685 | 938 | –4,748 | 20 | 23 | 14 |
Profit Numbers | |||||||||||
Operating profit (loss) | 673 | 1,008 | 1,680 | –65 | 1,615 | 984 | 938 | 1,922 | –32 | –13 | –16 |
Other non-operating income/expense, net | –17 | 0 | –17 | –33 | 0 | –33 | –50 | –50 | |||
Finance income | 178 | 0 | 178 | 1,002 | 0 | 1,002 | –82 | –82 | |||
Finance costs | –297 | 0 | –297 | –149 | 0 | –149 | 99 | 99 | |||
Financial income, net | –118 | 0 | –118 | 853 | 0 | 853 | <-100 | <-100 | |||
Profit (loss) before tax | 538 | 1,008 | 1,546 | 1,804 | 938 | 2,741 | –70 | –44 | |||
Income tax expense | –335 | –118 | –453 | –355 | –173 | –528 | –6 | –14 | |||
Profit (loss) after tax | 203 | 890 | 1,093 | 1,449 | 765 | 2,214 | –86 | –51 | |||
Attributable to owners of parent | 334 | 794 | 1,129 | 1,356 | 706 | 2,061 | –75 | –45 | |||
Attributable to non-controlling interests | –131 | 95 | –36 | 93 | 59 | 153 | <-100 | <-100 | |||
Key Ratios | |||||||||||
Operating margin (in %) | 8.9 | 22.4 | 23.0 | 14.8 | 28.8 | –5.8pp | –6.5pp | –5.8pp | |||
Effective tax rate (in %)2 | 62.2 | 29.3 | 19.7 | 19.2 | 42.5pp | 10.0pp | |||||
Earnings per share, basic (in €) | 0.29 | 0.96 | 1.15 | 1.75 | –75 | –45 |
1 Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS numbers of the previous year's respective period.
2 The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in Q2 2022 mainly resulted from tax effects of share-based payment expenses, acquisition-related charges and restructuring expenses. The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in Q2 2021 mainly resulted from tax effects of share-based payment expenses and acquisition-related charges.
Due to rounding, numbers may not add up precisely.
18/31
(E.2) | Reconciliation from Non-IFRS Numbers to IFRS Numbers – Year-to-Date |
€ millions, unless otherwise stated | Q1–Q2 2022 | Q1–Q2 2021 | ∆ in % | ||||||||
IFRS | Adj. | Non- IFRS | Currency Impact | Non-IFRS Constant Currency | IFRS | Adj. | Non- IFRS | IFRS | Non- IFRS | Non-IFRS Constant Currency1 | |
Revenue Numbers | |||||||||||
Cloud | 5,876 | 5,876 | –361 | 5,515 | 4,421 | 4,421 | 33 | 33 | 25 | ||
Software licenses | 743 | 743 | –35 | 708 | 1,133 | 1,133 | –34 | –34 | –38 | ||
Software support | 5,900 | 5,900 | –251 | 5,649 | 5,624 | 5,624 | 5 | 5 | 0 | ||
Software licenses and support | 6,643 | 6,643 | –287 | 6,357 | 6,757 | 6,757 | –2 | –2 | –6 | ||
Cloud and software | 12,519 | 12,519 | –647 | 11,872 | 11,178 | 11,178 | 12 | 12 | 6 | ||
Services | 2,075 | 2,075 | –108 | 1,967 | 1,839 | 1,839 | 13 | 13 | 7 | ||
Total revenue | 14,594 | 14,594 | –755 | 13,839 | 13,017 | 13,017 | 12 | 12 | 6 | ||
Operating Expense Numbers | |||||||||||
Cost of cloud | –1,822 | 116 | –1,706 | –1,444 | 108 | –1,336 | 26 | 28 | |||
Cost of software licenses and support | –841 | 45 | –796 | –939 | 50 | –889 | –10 | –10 | |||
Cost of cloud and software | –2,663 | 161 | –2,502 | –2,383 | 158 | –2,225 | 12 | 12 | |||
Cost of services | –1,635 | 133 | –1,502 | –1,447 | 139 | –1,308 | 13 | 15 | |||
Total cost of revenue | –4,298 | 294 | –4,003 | –3,830 | 297 | –3,533 | 12 | 13 | |||
Gross profit | 10,296 | 294 | 10,591 | 9,187 | 297 | 9,484 | 12 | 12 | |||
Research and development | –2,970 | 284 | –2,686 | –2,478 | 251 | –2,227 | 20 | 21 | |||
Sales and marketing | –4,330 | 520 | –3,810 | –3,491 | 482 | –3,009 | 24 | 27 | |||
General and administration | –1,034 | 415 | –619 | –1,098 | 522 | –576 | –6 | 7 | |||
Restructuring | –119 | 119 | 0 | –164 | 164 | 0 | –27 | NA | |||
Other operating income/expense, net | –118 | 0 | –118 | –12 | 0 | –12 | >100 | >100 | |||
Total operating expenses | –12,868 | 1,632 | –11,236 | 628 | –10,608 | –11,073 | 1,715 | –9,357 | 16 | 20 | 13 |
Profit Numbers | |||||||||||
Operating profit (loss) | 1,726 | 1,632 | 3,358 | –127 | 3,231 | 1,944 | 1,715 | 3,660 | –11 | –8 | –12 |
Other non-operating income/expense, net | –69 | 0 | –69 | 29 | 0 | 29 | <-100 | <-100 | |||
Finance income | 521 | 0 | 521 | 1,549 | 0 | 1,549 | –66 | –66 | |||
Finance costs | –695 | 0 | –695 | –381 | 0 | –381 | 82 | 82 | |||
Financial income, net | –174 | 0 | –174 | 1,168 | 0 | 1,168 | <-100 | <-100 | |||
Profit (loss) before tax | 1,483 | 1,632 | 3,115 | 3,141 | 1,715 | 4,856 | –53 | –36 | |||
Income tax expense | –648 | –208 | –856 | –622 | –300 | –922 | 4 | –7 | |||
Profit (loss) after tax | 835 | 1,424 | 2,259 | 2,519 | 1,415 | 3,934 | –67 | –43 | |||
Attributable to owners of parent | 1,074 | 1,232 | 2,306 | 2,396 | 1,310 | 3,706 | –55 | –38 | |||
Attributable to non-controlling interests | –239 | 192 | –47 | 123 | 105 | 228 | <-100 | <-100 | |||
Key Ratios | |||||||||||
Operating margin (in %) | 11.8 | 23.0 | 23.3 | 14.9 | 28.1 | –3.1pp | –5.1pp | –4.8pp | |||
Effective tax rate (in %)2 | 43.7 | 27.5 | 19.8 | 19.0 | 23.9pp | 8.5pp | |||||
Earnings per share, basic (in €) | 0.92 | 1.96 | 2.03 | 3.14 | –55 | –37 |
1 Constant-currency period-over-period changes are calculated by comparing the current year's non-IFRS constant-currency numbers with the non-IFRS number of the previous year's respective period.
2 The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in the first half of 2022 and 2021 mainly resulted from tax effects of share-based payment expenses, acquisition-related charges and restructuring expenses.
Due to rounding, numbers may not add up precisely.
19/31
(F) | Non-IFRS Adjustments – Actuals and Estimates |
€ millions | Estimated Amounts for Full Year 2022 | Q1–Q2 2022 | Q2 2022 | Q1–Q2 2021 | Q2 2021 |
Operating profit (loss) (IFRS) | 1,726 | 673 | 1,944 | 984 | |
Adjustment for acquisition-related charges | 620–720 | 328 | 165 | 296 | 147 |
Adjustment for share-based payment expenses | 2,500–2,700 | 1,184 | 714 | 1,256 | 784 |
Adjustment for restructuring | 130–150 | 119 | 130 | 164 | 6 |
Operating expense adjustments | 1,632 | 1,008 | 1,715 | 938 | |
Operating profit (loss) (non-IFRS) | 3,358 | 1,680 | 3,660 | 1,922 |
Due to rounding, numbers may not add up precisely.
(G) | Non-IFRS Adjustments by Functional Areas |
€ millions | Q2 2022 | Q2 2021 | ||||||||
IFRS | Acquisition- Related | SBP1 | Restruc- turing | Non-IFRS | IFRS | Acquisition- Related | SBP1 | Restruc- turing | Non-IFRS | |
Cost of cloud | –924 | 44 | 20 | 0 | –860 | –740 | 41 | 16 | 0 | –682 |
Cost of software licenses and support | –419 | 8 | 20 | 0 | –391 | –468 | 8 | 21 | 0 | –439 |
Cost of services | –856 | 6 | 81 | 0 | –769 | –738 | 5 | 82 | 0 | –651 |
Research and development | –1,545 | 3 | 178 | 0 | –1,363 | –1,306 | 2 | 156 | 0 | –1,149 |
Sales and marketing | –2,343 | 104 | 211 | 0 | –2,028 | –1,828 | 91 | 203 | 0 | –1,534 |
General and administration | –530 | 1 | 202 | 0 | –326 | –593 | 1 | 306 | 0 | –286 |
Restructuring | –130 | 0 | 0 | 130 | 0 | –6 | 0 | 0 | 6 | 0 |
Other operating income/expense, net | –98 | 0 | 0 | 0 | –98 | –5 | 0 | 0 | 0 | –5 |
Total operating expenses | –6,844 | 165 | 714 | 130 | –5,836 | –5,685 | 147 | 784 | 6 | –4,748 |
€ millions | Q1–Q2 2022 | Q1–Q2 2021 | ||||||||
IFRS | Acquisition- Related | SBP1 | Restruc- turing | Non-IFRS | IFRS | Acquisition- Related | SBP1 | Restruc- turing | Non-IFRS | |
Cost of cloud | –1,822 | 85 | 31 | 0 | –1,706 | –1,444 | 80 | 28 | 0 | –1,336 |
Cost of software licenses and support | –841 | 15 | 30 | 0 | –796 | –939 | 16 | 34 | 0 | –889 |
Cost of services | –1,635 | 11 | 122 | 0 | –1,502 | –1,447 | 10 | 129 | 0 | –1,308 |
Research and development | –2,970 | 5 | 279 | 0 | –2,686 | –2,478 | 3 | 248 | 0 | –2,227 |
Sales and marketing | –4,330 | 205 | 315 | 0 | –3,810 | –3,491 | 181 | 301 | 0 | –3,009 |
General and administration | –1,034 | 7 | 408 | 0 | –619 | –1,098 | 6 | 516 | 0 | –576 |
Restructuring | –119 | 0 | 0 | 119 | 0 | –164 | 0 | 0 | 164 | 0 |
Other operating income/expense, net | –118 | 0 | 0 | 0 | –118 | –12 | 0 | 0 | 0 | –12 |
Total operating expenses | –12,868 | 328 | 1,184 | 119 | –11,236 | –11,073 | 296 | 1,256 | 164 | –9,357 |
1 Share-based Payments
Due to rounding, numbers may not add up precisely.
20/31
If not presented in a separate line item in our income statement, the restructuring expenses would break down as follows:
€ millions | Q2 2022 | Q1–Q2 2022 | Q2 2021 | Q1–Q2 2021 |
Cost of cloud | –5 | 12 | –1 | –130 |
Cost of software licenses and support | –3 | –4 | –1 | –4 |
Cost of services | –59 | –61 | –1 | –15 |
Research and development | –4 | –7 | –2 | –11 |
Sales and marketing | –56 | –57 | –1 | –3 |
General and administration | –2 | –3 | 0 | –1 |
Restructuring expenses | –130 | –119 | –6 | –164 |
Due to rounding, numbers may not add up precisely.
21/31
Disaggregations |
(H) | Segment Reporting |
(H.1) | Segment Policies and Segment Changes |
SAP has two reportable segments: the Applications, Technology & Services segment and the Qualtrics segment.
For a more detailed description of SAP’s segment reporting, see Note (C.1) “Results of Segments” of our Consolidated Half-Year Financial Statements 2022.
(H.2) | Segment Reporting – Quarter |
Applications, Technology & Services
€ millions, unless otherwise stated | Q2 2022 | Q2 2021 | ∆ in % | ∆ in % | |
Actual Currency | Constant Currency | Actual Currency | Actual Currency | Constant Currency | |
Cloud | 2,704 | 2,507 | 2,063 | 31 | 22 |
Software licenses | 425 | 400 | 649 | –34 | –38 |
Software support | 2,977 | 2,819 | 2,823 | 5 | 0 |
Software licenses and support | 3,402 | 3,220 | 3,472 | –2 | –7 |
Cloud and software | 6,106 | 5,726 | 5,535 | 10 | 3 |
Services | 1,003 | 940 | 877 | 14 | 7 |
Total segment revenue | 7,109 | 6,666 | 6,412 | 11 | 4 |
Cost of cloud | –824 | –747 | –656 | 26 | 14 |
Cost of software licenses and support | –403 | –380 | –410 | –2 | –7 |
Cost of cloud and software | –1,227 | –1,127 | –1,066 | 15 | 6 |
Cost of services | –697 | –659 | –608 | 15 | 8 |
Total cost of revenue | –1,924 | –1,786 | –1,674 | 15 | 7 |
Segment gross profit | 5,185 | 4,879 | 4,738 | 9 | 3 |
Other segment expenses | –3,091 | –2,869 | –2,377 | 30 | 21 |
Segment profit (loss) | 2,094 | 2,011 | 2,361 | –11 | –15 |
Margins | |||||
Cloud gross margin (in %) | 69.5 | 70.2 | 68.2 | 1.3pp | 2.0pp |
Segment gross margin (in %) | 72.9 | 73.2 | 73.9 | –1.0pp | –0.7pp |
Segment margin (in %) | 29.5 | 30.2 | 36.8 | –7.4pp | –6.7pp |
Due to rounding, numbers may not add up precisely.
22/31
Qualtrics
€ millions, unless otherwise stated (non-IFRS) | Q2 2022 | Q2 2021 | ∆ in % | ∆ in % | |
Actual Currency | Constant Currency | Actual Currency | Actual Currency | Constant Currency | |
Cloud | 279 | 248 | 174 | 61 | 43 |
Cloud and software | 279 | 248 | 174 | 61 | 43 |
Services | 51 | 45 | 37 | 38 | 22 |
Total segment revenue | 330 | 293 | 211 | 57 | 39 |
Cost of cloud | –32 | –28 | –13 | >100 | >100 |
Cost of cloud and software | –32 | –28 | –13 | >100 | >100 |
Cost of services | –43 | –38 | –28 | 51 | 36 |
Total cost of revenue | –74 | –67 | –41 | 80 | 61 |
Segment gross profit | 256 | 226 | 169 | 51 | 34 |
Other segment expenses | –239 | –207 | –156 | 53 | 33 |
Segment profit (loss) | 17 | 19 | 13 | 25 | 45 |
Margins | |||||
Cloud gross margin (in %) | 88.6 | 88.5 | 92.4 | –3.8pp | –3.9pp |
Segment gross margin (in %) | 77.5 | 77.2 | 80.3 | –2.9pp | –3.1pp |
Segment margin (in %) | 5.1 | 6.6 | 6.3 | –1.3pp | 0.2pp |
Due to rounding, numbers may not add up precisely.
23/31
(H.3) | Segment Reporting – Year-to-Date |
Applications, Technology & Services
€ millions, unless otherwise stated (non-IFRS) | Q1–Q2 2022 | Q1–Q2 2021 | ∆ in % | ∆ in % | |
Actual Currency | Constant Currency | Actual Currency | Actual Currency | Constant Currency | |
Cloud | 5,199 | 4,891 | 4,015 | 29 | 22 |
Software licenses | 740 | 705 | 1,132 | –35 | –38 |
Software support | 5,899 | 5,648 | 5,623 | 5 | 0 |
Software licenses and support | 6,640 | 6,353 | 6,755 | –2 | –6 |
Cloud and software | 11,838 | 11,245 | 10,769 | 10 | 4 |
Services | 1,966 | 1,868 | 1,749 | 12 | 7 |
Total segment revenue | 13,804 | 13,113 | 12,519 | 10 | 5 |
Cost of cloud | –1,629 | –1,512 | –1,287 | 27 | 18 |
Cost of software licenses and support | –810 | –772 | –832 | –3 | –7 |
Cost of cloud and software | –2,438 | –2,285 | –2,119 | 15 | 8 |
Cost of services | –1,375 | –1,316 | –1,214 | 13 | 8 |
Total cost of revenue | –3,814 | –3,600 | –3,333 | 14 | 8 |
Segment gross profit | 9,991 | 9,512 | 9,186 | 9 | 4 |
Other segment expenses | –5,841 | –5,526 | –4,663 | 25 | 19 |
Segment profit (loss) | 4,149 | 3,986 | 4,523 | –8 | –12 |
Margins | |||||
Cloud gross margin (in %) | 68.7 | 69.1 | 67.9 | 0.7pp | 1.1pp |
Segment gross margin (in %) | 72.4 | 72.5 | 73.4 | –1.0pp | –0.8pp |
Segment margin (in %) | 30.1 | 30.4 | 36.1 | –6.1pp | –5.7pp |
Due to rounding, numbers may not add up precisely.
24/31
Qualtrics
€ millions, unless otherwise stated (non-IFRS) | Q1–Q2 2022 | Q1–Q2 2021 | ∆ in % | ∆ in % | |
Actual Currency | Constant Currency | Actual Currency | Actual Currency | Constant Currency | |
Cloud | 548 | 500 | 333 | 65 | 50 |
Cloud and software | 548 | 500 | 333 | 65 | 50 |
Services | 102 | 92 | 80 | 27 | 15 |
Total segment revenue | 650 | 592 | 413 | 57 | 43 |
Cost of cloud | –60 | –55 | –26 | >100 | >100 |
Cost of cloud and software | –60 | –55 | –26 | >100 | >100 |
Cost of services | –82 | –76 | –57 | 44 | 32 |
Total cost of revenue | –142 | –130 | –83 | 72 | 58 |
Segment gross profit | 508 | 461 | 330 | 54 | 40 |
Other segment expenses | –481 | –431 | –304 | 58 | 42 |
Segment profit (loss) | 26 | 30 | 26 | 2 | 17 |
Margins | |||||
Cloud gross margin (in %) | 89.1 | 89.0 | 92.3 | –3.2pp | –3.3pp |
Segment gross margin (in %) | 78.1 | 78.0 | 80.0 | –1.8pp | –2.0pp |
Segment margin (in %) | 4.1 | 5.1 | 6.3 | –2.2pp | –1.2pp |
Due to rounding, numbers may not add up precisely.
25/31
(I) | Reconciliation of Cloud Revenues and Margins |
(I.1) | Reconciliation of Cloud Revenues and Margins – Quarter |
€ millions, unless otherwise stated
| Q2 2022 | Q2 2021 | ∆ in % | ||||||
IFRS | Non- IFRS | Currency Impact | Non-IFRS Constant Currency | IFRS | Non- IFRS | IFRS | Non- IFRS | Non-IFRS Constant Currency4 | |
Cloud revenue – SaaS1 | 2,409 | 2,409 | –191 | 2,218 | 1,789 | 1,789 | 35 | 35 | 24 |
Cloud revenue – PaaS2 | 389 | 389 | –24 | 366 | 262 | 262 | 49 | 49 | 40 |
Cloud revenue – IaaS3 | 257 | 257 | –17 | 240 | 225 | 225 | 14 | 14 | 7 |
Cloud revenue | 3,056 | 3,056 | –232 | 2,824 | 2,276 | 2,276 | 34 | 34 | 24 |
Cloud gross margin – SaaS1 (in %) | 72.8 | 75.2 | 75.2 | 69.6 | 72.6 | 3.1 pp | 2.6 pp | 2.6 pp | |
Cloud gross margin – PaaS2 (in %) | 79.5 | 79.6 | 81.4 | 80.7 | 80.8 | –1.2 pp | –1.2 pp | 0.5 pp | |
Cloud gross margin – IaaS3 (in %) | 27.1 | 28.5 | 32.1 | 35.2 | 36.7 | –8.1 pp | –8.2 pp | –4.6 pp | |
Cloud gross margin (in %) | 69.8 | 71.9 | 72.3 | 67.5 | 70.0 | 2.3 pp | 1.8 pp | 2.3 pp |
1 Software as a service
2 Platform as a service
3 Infrastructure as a service
4 Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS numbers of the previous year's respective period.
As of Q1 2022, the allocation of cloud revenues and -expenses to cloud service models has been aligned to internal reporting structures. Presented 2021 comparable periods have been updated accordingly.
Due to rounding, numbers may not add up precisely.
26/31
(I.2) | Reconciliation of Cloud Revenues and Margins – Year-to-Date |
€ millions, unless otherwise stated | Q1-Q2 2022 | Q1-Q2 2021 | ∆ in % | ||||||
IFRS | Non- IFRS | Currency Impact | Non-IFRS Constant Currency | IFRS | Non- IFRS | IFRS | Non- IFRS | Non-IFRS Constant Currency4 | |
Cloud revenue – SaaS1 | 4,644 | 4,644 | –298 | 4,347 | 3,489 | 3,489 | 33 | 33 | 25 |
Cloud revenue – PaaS2 | 739 | 739 | –37 | 703 | 493 | 493 | 50 | 50 | 43 |
Cloud revenue – IaaS3 | 492 | 492 | –26 | 466 | 439 | 439 | 12 | 12 | 6 |
Cloud revenue | 5,876 | 5,876 | –361 | 5,515 | 4,421 | 4,421 | 33 | 33 | 25 |
Cloud gross margin – SaaS1 (in %) | 72.0 | 74.4 | 74.2 | 69.7 | 72.6 | 2.3 pp | 1.8 pp | 1.6 pp | |
Cloud gross margin – PaaS2 (in %) | 78.8 | 78.8 | 79.9 | 80.7 | 80.8 | –1.9 pp | –2.0 pp | –0.9 pp | |
Cloud gross margin – IaaS3 (in %) | 26.2 | 27.3 | 30.0 | 33.8 | 35.0 | –7.6 pp | –7.7 pp | –5.0 pp | |
Cloud gross margin (in %) | 69.0 | 71.0 | 71.2 | 67.3 | 69.8 | 1.7 pp | 1.2 pp | 1.4 pp |
1 Software as a service
2 Platform as a service
3 Infrastructure as a service
4 Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS numbers of the previous year's respective period.
Due to rounding, numbers may not add up precisely.
27/31
(J) | Revenue by Region (IFRS and Non-IFRS) |
(J.1) | Revenue by Region (IFRS and Non-IFRS) – Quarter |
€ millions | Q2 2022 | Q2 2021 | ∆ in % | ||||||
IFRS | Non-IFRS | Currency | Non-IFRS | IFRS | Non-IFRS | IFRS | Non-IFRS | Non-IFRS | |
Cloud Revenue by Region | |||||||||
EMEA | 1,054 | 1,054 | –35 | 1,018 | 803 | 803 | 31 | 31 | 27 |
Americas | 1,614 | 1,614 | –182 | 1,432 | 1,176 | 1,176 | 37 | 37 | 22 |
APJ | 389 | 389 | –15 | 374 | 297 | 297 | 31 | 31 | 26 |
Cloud revenue | 3,056 | 3,056 | –232 | 2,824 | 2,276 | 2,276 | 34 | 34 | 24 |
Cloud and Software Revenue by Region | |||||||||
EMEA | 2,728 | 2,728 | –62 | 2,666 | 2,616 | 2,616 | 4 | 4 | 2 |
Americas | 2,754 | 2,754 | –314 | 2,440 | 2,218 | 2,218 | 24 | 24 | 10 |
APJ | 977 | 977 | –38 | 939 | 915 | 915 | 7 | 7 | 3 |
Cloud and software revenue | 6,459 | 6,459 | –414 | 6,045 | 5,750 | 5,750 | 12 | 12 | 5 |
Total Revenue by Region | |||||||||
Germany | 1,068 | 1,068 | –2 | 1,066 | 1,006 | 1,006 | 6 | 6 | 6 |
Rest of EMEA | 2,106 | 2,106 | –72 | 2,034 | 2,014 | 2,014 | 5 | 5 | 1 |
Total EMEA | 3,174 | 3,174 | –73 | 3,101 | 3,020 | 3,020 | 5 | 5 | 3 |
United States | 2,619 | 2,619 | –296 | 2,323 | 2,132 | 2,132 | 23 | 23 | 9 |
Rest of Americas | 611 | 611 | –72 | 539 | 488 | 488 | 25 | 25 | 11 |
Total Americas | 3,230 | 3,230 | –368 | 2,862 | 2,619 | 2,619 | 23 | 23 | 9 |
Japan | 302 | 302 | 13 | 315 | 306 | 306 | –1 | –1 | 3 |
Rest of APJ | 811 | 811 | –56 | 754 | 724 | 724 | 12 | 12 | 4 |
Total APJ | 1,112 | 1,112 | –43 | 1,069 | 1,030 | 1,030 | 8 | 8 | 4 |
Total revenue | 7,517 | 7,517 | –484 | 7,033 | 6,669 | 6,669 | 13 | 13 | 5 |
1) Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS numbers of the previous year's respective period.
Due to rounding, numbers may not add up precisely.
28/31
(J.2) | Revenue by Region (IFRS and Non-IFRS) – Year-to-Date |
€ millions | Q1–Q2 2022 | Q1–Q2 2021 | ∆ in % | ||||||
IFRS | Non-IFRS | Currency | Non-IFRS | IFRS | Non-IFRS | IFRS | Non-IFRS | Non-IFRS | |
Cloud Revenue by Region | |||||||||
EMEA | 2,036 | 2,036 | –57 | 1,979 | 1,547 | 1,547 | 32 | 32 | 28 |
Americas | 3,094 | 3,094 | –282 | 2,812 | 2,291 | 2,291 | 35 | 35 | 23 |
APJ | 746 | 746 | –22 | 724 | 582 | 582 | 28 | 28 | 24 |
Cloud revenue | 5,876 | 5,876 | –361 | 5,515 | 4,421 | 4,421 | 33 | 33 | 25 |
Cloud and Software Revenue by Region | |||||||||
EMEA | 5,355 | 5,355 | –100 | 5,255 | 5,050 | 5,050 | 6 | 6 | 4 |
Americas | 5,265 | 5,265 | –488 | 4,777 | 4,336 | 4,336 | 21 | 21 | 10 |
APJ | 1,899 | 1,899 | –60 | 1,839 | 1,792 | 1,792 | 6 | 6 | 3 |
Cloud and software revenue | 12,519 | 12,519 | –647 | 11,872 | 11,178 | 11,178 | 12 | 12 | 6 |
Total Revenue by Region | |||||||||
Germany | 2,129 | 2,129 | –3 | 2,126 | 1,957 | 1,957 | 9 | 9 | 9 |
Rest of EMEA | 4,110 | 4,110 | –114 | 3,997 | 3,898 | 3,898 | 5 | 5 | 3 |
Total EMEA | 6,239 | 6,239 | –117 | 6,123 | 5,855 | 5,855 | 7 | 7 | 5 |
United States | 5,028 | 5,028 | –456 | 4,571 | 4,166 | 4,166 | 21 | 21 | 10 |
Rest of Americas | 1,161 | 1,161 | –115 | 1,046 | 974 | 974 | 19 | 19 | 7 |
Total Americas | 6,189 | 6,189 | –571 | 5,617 | 5,140 | 5,140 | 20 | 20 | 9 |
Japan | 613 | 613 | 19 | 632 | 628 | 628 | –2 | –2 | 1 |
Rest of APJ | 1,553 | 1,553 | –86 | 1,467 | 1,394 | 1,394 | 11 | 11 | 5 |
Total APJ | 2,166 | 2,166 | –67 | 2,099 | 2,022 | 2,022 | 7 | 7 | 4 |
Total revenue | 14,594 | 14,594 | –755 | 13,839 | 13,017 | 13,017 | 12 | 12 | 6 |
1 Constant-currency period-over-period changes are calculated by comparing the current year's non-IFRS constant-currency numbers with the non-IFRS number of the previous year's respective period.
Due to rounding, numbers may not add up precisely.
29/31
(K) | Employees by Region and Functional Areas |
Full-time equivalents | 6/30/2022 | 6/30/2021 | ||||||
EMEA | Americas | APJ | Total | EMEA | Americas | APJ | Total | |
Cloud and software | 5,978 | 4,570 | 5,157 | 15,705 | 5,859 | 4,456 | 5,029 | 15,345 |
Services | 8,304 | 5,516 | 5,864 | 19,684 | 8,264 | 5,627 | 6,102 | 19,993 |
Research and development | 15,920 | 6,348 | 10,677 | 32,945 | 14,489 | 6,162 | 10,021 | 30,672 |
Sales and marketing | 11,983 | 12,394 | 5,691 | 30,068 | 10,607 | 10,765 | 4,991 | 26,363 |
General and administration | 3,423 | 2,271 | 1,252 | 6,945 | 3,452 | 2,184 | 1,187 | 6,823 |
Infrastructure | 2,780 | 1,405 | 877 | 5,061 | 2,588 | 1,299 | 792 | 4,679 |
SAP Group (6/30) | 48,388 | 32,504 | 29,518 | 110,409 | 45,261 | 30,493 | 28,123 | 103,876 |
Thereof acquisitions1 | 173 | 214 | 8 | 395 | 377 | 43 | 26 | 446 |
SAP Group (six months' end average) | 47,842 | 32,354 | 29,456 | 109,652 | 44,741 | 30,332 | 28,021 | 103,094 |
1 Acquisitions closed between January 1 and June 30 of the respective year
30/31
(L) | Financial Income, Net |
In the second quarter of 2022, finance income mainly consisted of gains from disposals and fair value adjustments of equity securities totaling €146 million (Q2/2021: €985 million) and €463 million in the first half 2022 (HY1/2021: €1,515 million).
In the second quarter of 2022, finance costs were primarily impacted by losses from disposals and fair value adjustments of equity securities amounting to €225 million (Q2/2021: €67 million) and €543 million in the first half 2022 (HY1/2021: €228 million).
(M) | Business Combinations |
Taulia
On January 27, 2022, SAP announced its intent to acquire a majority stake of Taulia, a leading provider of working capital management solutions. The acquisition closed on March 9, 2022, following satisfaction of customary closing conditions and regulatory approvals; the operating results and assets and liabilities are reflected in our consolidated financial statements starting on that date. The acquisition is expected to further expand SAP’s business network capabilities and strengthen SAP’s solutions for the CFO office. Consideration transferred amounted to €0.7 billion.
In the second quarter Taulias contribution to revenue was approx. €16 million, to operating profit approx. -€12 million (IFRS) and approx. -€6 million (Non-IFRS).
For more information about Business Combinations, see the Notes to the 2022 Consolidated Half-Year Financial Statements Note (D.1.).
(N) | Share Buyback |
In the second quarter of 2022, we acquired 4.3 million treasury shares totaling €419 million and thus completed the 2022 share buyback program.
(O) | Share Based Payments |
Starting in 2022, most of the granted share units under the Move SAP plan will vest after a waiting period of six months and ratably thereafter for ten quarters. Under our previous policy, we serviced obligations arising from the plan with cash payments, but we have since decided to settle future share units predominantly in shares.
In the first six months of 2022, we granted 16.8 million (first six months of 2021: 11.2 million) share units. This includes 14.3 million (first six months of 2021: 0) share units which we intend to settle in shares. The dilutive effect of outstanding equity-settled share units is reflected in the calculation of earnings per share, diluted.
Obligations from outstanding share units granted before 2022 under the Move SAP plan will continue to be settled in cash and the settlement methods of SAP’s other plans remain unchanged.
Under the Own SAP plan, employees can purchase, on a monthly basis, SAP shares without any required holding period. As part of SAP’s 50th anniversary celebration SAP's contribution was doubled from 40% to 80% from January to March 2022. The number of shares purchased by our employees under this plan was 4.6 million in the first six months of 2022 (first six month of 2021: 2.9 million).
31/31