Primary Consolidated Financial Statements
Consolidated Income Statements of SAP Group for the Years Ended December 31
€ millions, unless otherwise stated | Notes | 2018 | 2017 | 2016 | ||||
Cloud subscriptions and support | 4,993 | 3,769 | 2,993 | |||||
Software licenses | 4,647 | 4,872 | 4,859 | |||||
Software support | 10,981 | 10,908 | 10,571 | |||||
Software licenses and support | 15,628 | 15,780 | 15,431 | |||||
Cloud and software | 20,622 | 19,549 | 18,424 | |||||
Services | 4,086 | 3,912 | 3,639 | |||||
Total revenue | (A.1), (C.2) | 24,708 | 23,461 | 22,062 | ||||
Cost of cloud subscriptions and support | −2,068 | −1,660 | −1,313 | |||||
Cost of software licenses and support | −2,092 | −2,234 | −2,182 | |||||
Cost of cloud and software | −4,160 | −3,893 | −3,495 | |||||
Cost of services | −3,302 | −3,158 | −3,089 | |||||
Total cost of revenue | −7,462 | −7,051 | −6,583 | |||||
Gross profit | 17,246 | 16,410 | 15,479 | |||||
Research and development | −3,624 | −3,352 | −3,044 | |||||
Sales and marketing | −6,781 | −6,924 | −6,265 | |||||
General and administration | −1,098 | −1,075 | −1,005 | |||||
Restructuring | (B.6) | −19 | −182 | −28 | ||||
Other operating income/expense, net | −20 | 1 | −3 | |||||
Total operating expenses | −19,005 | −18,584 | −16,928 | |||||
Operating profit | 5,703 | 4,877 | 5,135 | |||||
Other non-operating income/expense, net | (C.3) | −56 | −36 | −234 | ||||
Finance income | 371 | 476 | 230 | |||||
Finance costs | −418 | −288 | −259 | |||||
Financial income, net | (C.4) | −47 | 188 | −29 | ||||
Profit before tax | (C.2) | 5,600 | 5,029 | 4,872 | ||||
Income tax expense | (C.5) | −1,511 | −983 | −1,242 | ||||
Profit after tax | 4,088 | 4,046 | 3,629 | |||||
Attributable to owners of parent | 4,083 | 4,008 | 3,642 | |||||
Attributable to non-controlling interests | 6 | 38 | −13 | |||||
Earnings per share, basic (in €) | (C.6) | 3.42 | 3.35 | 3.04 | ||||
Earnings per share, diluted (in €) | (C.6) | 3.42 | 3.35 | 3.04 | ||||
The accompanying Notes are an integral part of these Consolidated Financial Statements. |
Consolidated Statements of Comprehensive Income of SAP Group for the Years Ended December 31
€ millions | Notes | 2018 | 2017 | 2016 | ||||
Profit after tax | 4,088 | 4,046 | 3,629 | |||||
Items that will not be reclassified to profit or loss | ||||||||
Remeasurements on defined benefit pension plans, before tax | 12 | 29 | −10 | |||||
Income taxes relating to remeasurements on defined benefit pension plans | −1 | −7 | 2 | |||||
Remeasurements on defined benefit pension plans, net of tax | 11 | 22 | −8 | |||||
Other comprehensive income for items that will not be reclassified to profit or loss, net of tax | 11 | 22 | −8 | |||||
Items that will be reclassified subsequently to profit or loss | ||||||||
Gains (losses) on exchange differences on translation, before tax | 910 | −2,730 | 865 | |||||
Reclassification adjustments on exchange differences on translation, before tax | 0 | 0 | −1 | |||||
Exchange differences, before tax | 910 | −2,730 | 864 | |||||
Income taxes relating to exchange differences on translation | 0 | −2 | −25 | |||||
Exchange differences, net of tax | (E.2) | 910 | −2,732 | 839 | ||||
Gains (losses) on remeasuring available-for-sale financial assets, before tax | 0 | 114 | −18 | |||||
Reclassification adjustments on available-for-sale financial assets, before tax | 0 | −250 | −26 | |||||
Available-for-sale financial assets, before tax | (F.2), (F.3) | 0 | −136 | −44 | ||||
Income taxes relating to available-for-sale financial assets | 0 | 1 | 1 | |||||
Available-for-sale financial assets, net of tax | (E.2) | 0 | −135 | −43 | ||||
Gains (losses) on cash flow hedges/cost of hedging, before tax | −10 | 81 | −24 | |||||
Reclassification adjustments on cash flow hedges/cost of hedging, before tax | −22 | −41 | 8 | |||||
Cash flow hedges/cost of hedging, before tax | (F.1), (F.3) | −32 | 39 | −15 | ||||
Income taxes relating to cash flow hedges/cost of hedging | 9 | −10 | 4 | |||||
Cash flow hedges/cost of hedging, net of tax | (E.2) | −23 | 29 | −11 | ||||
Other comprehensive income for items that will be reclassified to profit or loss, net of tax | 887 | −2,838 | 785 | |||||
Other comprehensive income, net of tax | 898 | −2,816 | 777 | |||||
Total comprehensive income | 4,986 | 1,229 | 4,406 | |||||
Attributable to owners of parent | 4,980 | 1,191 | 4,418 | |||||
Attributable to non-controlling interests | 6 | 38 | −13 | |||||
The accompanying Notes are an integral part of these Consolidated Financial Statements. |
Consolidated Statements of Financial Position of SAP Group as at December 31
€ millions | Notes | 2018 | 2017 | |||
Cash and cash equivalents | (E.3) | 8,627 | 4,011 | |||
Other financial assets | (D.5), (E.3) | 448 | 990 | |||
Trade and other receivables | (A.2) | 6,362 | 5,899 | |||
Other non-financial assets | (A.3), (G.1) | 889 | 725 | |||
Tax assets | 293 | 306 | ||||
Total current assets | 16,620 | 11,930 | ||||
Goodwill | (D.2) | 23,725 | 21,271 | |||
Intangible assets | (D.3) | 3,227 | 2,967 | |||
Property, plant, and equipment | (D.4) | 3,553 | 2,967 | |||
Other financial assets | (D.5), (E.3) | 1,536 | 1,155 | |||
Trade and other receivables | (A.2) | 118 | 118 | |||
Other non-financial assets | (A.3), (G.1) | 1,301 | 687 | |||
Tax assets | 397 | 352 | ||||
Deferred tax assets | (C.5) | 1,015 | 1,037 | |||
Total non-current assets | 34,871 | 30,554 | ||||
Total assets | 51,491 | 42,484 | ||||
Trade and other payables | 1,486 | 1,151 | ||||
Tax liabilities | 611 | 597 | ||||
Financial liabilities | (E.3) | 1,125 | 1,561 | |||
Other non-financial liabilities | (B.5), (G.2) | 4,120 | 3,982 | |||
Provisions | (A.4), (B.4), (B.5), (B.6) | 110 | 149 | |||
Contract liabilities/deferred income | (A.1) | 3,028 | 2,771 | |||
Total current liabilities | 10,481 | 10,210 | ||||
Trade and other payables | 129 | 119 | ||||
Tax liabilities | 495 | 434 | ||||
Financial liabilities | (E.3) | 10,553 | 5,034 | |||
Other non-financial liabilities | (B.5), (G.2) | 501 | 514 | |||
Provisions | (A.4), (B.4), (B.5), (B.6) | 270 | 328 | |||
Deferred tax liabilities | (C.5) | 97 | 251 | |||
Contract liabilities/deferred income | (A.1) | 88 | 79 | |||
Total non-current liabilities | 12,133 | 6,759 | ||||
Total liabilities | 22,614 | 16,969 | ||||
Issued capital | 1,229 | 1,229 | ||||
Share premium | 543 | 570 | ||||
Retained earnings | 27,407 | 24,769 | ||||
Other components of equity | 1,234 | 508 | ||||
Treasury shares | −1,580 | −1,591 | ||||
Equity attributable to owners of parent | 28,832 | 25,484 | ||||
Non-controlling interests | 45 | 31 | ||||
Total equity | (E.2) | 28,877 | 25,515 | |||
Total equity and liabilities | 51,491 | 42,484 | ||||
The accompanying Notes are an integral part of these Consolidated Financial Statements. |
Consolidated Statements of Changes in Equity of SAP Group for the Years Ended December 31
€ millions | Equity Attributable to Owners of Parent | Non-Controlling Interests | Total Equity | |||||||||||||
Issued Capital | Share Premium | Retained Earnings | Other Components of Equity | Treasury Shares | Total | |||||||||||
Notes | (E.2) | (E.2) | (E.2) | (E.2) | ||||||||||||
1/1/2016 | 1,229 | 558 | 20,033 | 2,561 | −1,124 | 23,257 | 28 | 23,285 | ||||||||
Profit after tax | 3,642 | 3,642 | −13 | 3,629 | ||||||||||||
Other comprehensive income | −8 | 785 | 777 | 777 | ||||||||||||
Comprehensive income | 3,634 | 785 | 4,418 | −13 | 4,406 | |||||||||||
Share-based payments | 16 | 16 | 16 | |||||||||||||
Dividends | −1,378 | −1,378 | −1,378 | |||||||||||||
Reissuance of treasury shares under share-based payments | 25 | 25 | 50 | 50 | ||||||||||||
Other changes | −2 | −2 | 6 | 4 | ||||||||||||
12/31/2016 | 1,229 | 599 | 22,287 | 3,346 | −1,099 | 26,361 | 21 | 26,383 | ||||||||
Profit after tax | 4,008 | 4,008 | 38 | 4,046 | ||||||||||||
Other comprehensive income | 22 | −2,838 | −2,816 | −2,816 | ||||||||||||
Comprehensive income | 4,029 | −2,838 | 1,191 | 38 | 1,229 | |||||||||||
Share-based payments | −43 | −43 | −43 | |||||||||||||
Dividends | −1,499 | −1,499 | −66 | −1,565 | ||||||||||||
Purchase of treasury shares | −500 | −500 | −500 | |||||||||||||
Reissuance of treasury shares under share-based payments | 13 | 8 | 22 | 22 | ||||||||||||
Hyperinflation | −17 | −17 | −17 | |||||||||||||
Changes in non-controlling interests | −33 | −33 | 35 | 2 | ||||||||||||
Other changes | 2 | 2 | 2 | 4 | ||||||||||||
12/31/2017 | 1,229 | 570 | 24,769 | 508 | −1,591 | 25,484 | 31 | 25,515 | ||||||||
Adoption of IFRS 15 | 83 | 83 | 83 | |||||||||||||
Adoption of IFRS 9 | 135 | −160 | −25 | −25 | ||||||||||||
1/1/2018 | 1,229 | 570 | 24,987 | 347 | −1,591 | 25,542 | 31 | 25,573 | ||||||||
Profit after tax | 4,083 | 4,083 | 6 | 4,088 | ||||||||||||
Other comprehensive income | 11 | 887 | 898 | 898 | ||||||||||||
Comprehensive income | 4,093 | 887 | 4,980 | 6 | 4,986 | |||||||||||
Share-based payments | −40 | −40 | −40 | |||||||||||||
Dividends | −1,671 | −1,671 | −13 | −1,684 | ||||||||||||
Reissuance of treasury shares under share-based payments | 13 | 11 | 24 | 24 | ||||||||||||
Shares to be issued | 7 | 7 | 7 | |||||||||||||
Hyperinflation | −8 | −8 | −8 | |||||||||||||
Changes in non-controlling interests | 0 | 19 | 19 | |||||||||||||
Other changes | −2 | −2 | 3 | 1 | ||||||||||||
12/31/2018 | 1,229 | 543 | 27,407 | 1,234 | −1,580 | 28,832 | 45 | 28,877 | ||||||||
The accompanying Notes are an integral part of these Consolidated Financial Statements. |
Consolidated Statements of Cash Flows of SAP Group for the Years Ended December 31
€ millions | Notes | 2018 | 2017 | 2016 | ||||
Profit after tax | 4,088 | 4,046 | 3,629 | |||||
Adjustments to reconcile profit after tax to net cash flow from operating activities: | ||||||||
Depreciation and amortization | (D.2)–(D.4) | 1,362 | 1,272 | 1,268 | ||||
Income tax expense | (C.5) | 1,511 | 983 | 1,242 | ||||
Financial income, net | (C.4) | 47 | −188 | 29 | ||||
Decrease/increase in sales and bad debt allowances on trade receivables | −67 | −32 | 51 | |||||
Other adjustments for non-cash items | −14 | −34 | 39 | |||||
Decrease/increase in trade and other receivables | 136 | −309 | −675 | |||||
Decrease/increase in other assets | −454 | −355 | −248 | |||||
Decrease/increase in trade payables, provisions, and other liabilities | 93 | 389 | 513 | |||||
Decrease/increase in contract liabilities/deferred income | −561 | 718 | 368 | |||||
Interest paid | −251 | −200 | −190 | |||||
Interest received | 99 | 88 | 79 | |||||
Income taxes paid, net of refunds | −1,687 | −1,332 | −1,477 | |||||
Net cash flows from operating activities | 4,303 | 5,045 | 4,628 | |||||
Business combinations, net of cash and cash equivalents acquired | −2,036 | −291 | −106 | |||||
Cash flows from derivative financial instruments related to business combinations | −103 | 0 | 0 | |||||
Total cash flows for business combinations, net of cash and cash equivalents acquired | (D.1) | −2,140 | −291 | −106 | ||||
Purchase of intangible assets and property, plant, and equipment | −1,458 | −1,275 | −1,001 | |||||
Proceeds from sales of intangible assets or property, plant, and equipment | 57 | 97 | 63 | |||||
Purchase of equity or debt instruments of other entities | −1,013 | −2,914 | −1,549 | |||||
Proceeds from sales of equity or debt instruments of other entities | 1,488 | 3,272 | 793 | |||||
Net cash flows from investing activities | −3,066 | −1,112 | −1,799 | |||||
Dividends paid | (E.2) | −1,671 | −1,499 | −1,378 | ||||
Dividends paid on non-controlling interests | −7 | −45 | 0 | |||||
Purchase of treasury shares | (E.2) | 0 | −500 | 0 | ||||
Proceeds from reissuance of treasury shares | 0 | 0 | 27 | |||||
Proceeds from borrowings | (E.3) | 6,368 | 27 | 443 | ||||
Repayments of borrowings | (E.3) | −1,407 | −1,391 | −1,800 | ||||
Transactions with non-controlling interests | 0 | 2 | 3 | |||||
Net cash flows from financing activities | 3,283 | −3,406 | −2,705 | |||||
Effect of foreign currency rates on cash and cash equivalents | 97 | −218 | 167 | |||||
Net decrease/increase in cash and cash equivalents | 4,617 | 309 | 291 | |||||
Cash and cash equivalents at the beginning of the period | (E.3) | 4,011 | 3,702 | 3,411 | ||||
Cash and cash equivalents at the end of the period | (E.3) | 8,627 | 4,011 | 3,702 | ||||
The accompanying Notes are an integral part of these Consolidated Financial Statements. |