MAJOR U.S. STAKE
The total number of SAP shares outstanding at the end of 2004 was 316 million – of which three founders of the company, their trusts, and their holding companies hold approximately 34%. The remaining 66% of the subscribed capital is in free float. U.S. investors’ interest in SAP remained high: U.S. institutions (mutual funds and financial asset managers) and private investors held 34.7% of the free float at the end of 2004, some 3 percentage points more than at the end of the previous year. At the end of 2004, German institutions held 12.6% of the free float – 1 percentage point less than in the previous year. Institutional holdings of SAP stock decreased almost 3 percentage points to 15.6% in continental Europe excluding Germany and increased some 1 percentage point to 9.6% in the United Kingdom and Ireland.
IMPROVED ENGAGEMENT WITH THE CAPITAL MARKETS
Openness and transparency characterized relations with our investors in 2004. In the past year, SAP informed institutions about the business environment and the Company’s strategy and future prospects at more than 400 one-on-one discussions, group discussions, and road shows around the world. More than 80 financial institutions – about one third of them from the United States – regularly publish information and analyses concerning SAP stock, which demonstrates the strong interest shown by the financial markets. The headline financial news in 2004 concerned product innovations for the SAP NetWeaver platform and SAP’s greater focus on small and midsize businesses (SMBs). Investor workshops – at which SAP explained its product strategy and invited customers to report on how they find SAP solutions in practice – were well received by the financial markets. For example, more than 100 financial analysts and portfolio managers attended the SAP Investor Day at the SAPPHIRE customer conference
in New Orleans. Top of the agenda at the SAP Investor Day in London was Enterprise Services Architecture: More
than 80 analysts and institutions took the opportunity to discuss the challenges of the new software generation with the
Executive Board.
Cash Earnings According to DVFA/SG1)
| |
2004 |
2003 |
| € millions |
€ millions |
| Net income before minority interest |
1,310.5 |
1,077.1 |
| Minority interest |
4.9 |
6.9 |
| Net income |
1,315.4 |
1,084.0 |
| Depreciation and amortization |
229.9 |
238.2 |
| Write-ups |
– 2.4 |
– 7.2 |
| Change in reserves and accrued liabilities |
51.7 |
83.7 |
| Change in deferred taxes |
19.2 |
92.6 |
| Other material non-cash expenses and income |
– 4.7 |
– 13.4 |
| Cash earnings according to DVFA/SG1) |
1,609.1 |
1,477.9 |
| Cash earnings per share according to DVFA/SG1) in € |
5.09 |
4.69 |
1) German Association of Financial Analysts and Investment Consultants (DVFA) and Schmalenbach Society for Business Management (SG) method |
