€ millions, unless otherwise stated | 2020 | 2019 | 2018 | 2017 | 2016 |
Revenues | |||||
Cloud (IFRS) | 8,080 | 6,933 | 4,993 | 3,769 | 2,993 |
Non-IFRS adjustments | 5 | 81 | 33 | 2 | 2 |
Cloud (non-IFRS) | 8,085 | 7,013 | 5,027 | 3,771 | 2,995 |
Software licenses (IFRS) | 3,642 | 4,533 | 4,647 | 4,872 | 4,859 |
Non-IFRS adjustments | 0 | 0 | 0 | 0 | 2 |
Software licenses (non-IFRS) | 3,642 | 4,533 | 4,647 | 4,872 | 4,862 |
Software support (IFRS) | 11,506 | 11,547 | 10,981 | 10,908 | 10,571 |
Non-IFRS adjustments | 0 | 0 | 0 | 0 | 1 |
Software support (non-IFRS) | 11,506 | 11,548 | 10,982 | 10,908 | 10,572 |
Cloud and software (IFRS) | 23,228 | 23,012 | 20,622 | 19,549 | 18,424 |
Non-IFRS adjustments | 5 | 81 | 33 | 3 | 3 |
Cloud and software (non-IFRS) | 23,233 | 23,093 | 20,655 | 19,552 | 18,427 |
Services (IFRS = non-IFRS) | 4,110 | 4,541 | 4,086 | 3,912 | 3,639 |
Total revenue (IFRS) | 27,338 | 27,553 | 24,708 | 23,461 | 22,062 |
Non-IFRS adjustments | 5 | 81 | 33 | 3 | 5 |
Total revenue (non-IFRS) | 27,343 | 27,634 | 24,741 | 23,464 | 22,067 |
Share of more predictable revenue (IFRS, in %) | 72 | 67 | 65 | 63 | 61 |
Share of more predictable revenue (non-IFRS, in %) | 72 | 67 | 65 | 63 | 61 |
Operating Expenses | |||||
Cost of cloud (IFRS) | −2,699 | −2,534 | −2,068 | −1,660 | −1,313 |
Non-IFRS adjustments | 248 | 305 | 213 | 233 | 247 |
Cost of cloud (non-IFRS) | −2,451 | −2,228 | −1,855 | −1,427 | −1,066 |
Cost of software licenses and support (IFRS) | −2,008 | −2,159 | −2,092 | −2,234 | −2,182 |
Non-IFRS adjustments | 97 | 141 | 130 | 190 | 238 |
Cost of software licenses and support (non-IFRS) | −1,911 | −2,018 | −1,962 | −2,044 | −1,944 |
Cost of cloud and software (IFRS) | −4,707 | −4,692 | −4,160 | −3,893 | −3,495 |
Non-IFRS adjustments | 345 | 446 | 343 | 423 | 485 |
Cost of cloud and software (non-IFRS) | −4,362 | −4,247 | −3,817 | −3,471 | −3,010 |
Cost of services (IFRS) | −3,178 | −3,662 | −3,302 | −3,158 | −3,089 |
Non-IFRS adjustments | 178 | 254 | 151 | 166 | 113 |
Cost of services (non-IFRS) | −3,000 | −3,408 | −3,151 | −2,991 | −2,976 |
Total cost of revenue (IFRS) | −7,886 | −8,355 | −7,462 | −7,051 | −6,583 |
Non-IFRS adjustments | 523 | 700 | 494 | 589 | 598 |
Total cost of revenue (non-IFRS) | −7,362 | −7,655 | −6,969 | −6,462 | −5,985 |
Research and development (IFRS) | −4,454 | −4,292 | −3,624 | −3,352 | −3,044 |
Research and development (in % of total revenue, IFRS) | 16.3 | 15.6 | 14.7 | 14.3 | 13.8 |
Research and development (in % of total operating expenses, IFRS) | 21.5 | 18.6 | 19.1 | 18.0 | 18.0 |
Sales and marketing (IFRS) | −7,106 | −7,693 | −6,781 | −6,924 | −6,265 |
General and administration (IFRS) | −1,356 | −1,629 | −1,098 | −1,075 | −1,005 |
Depreciation and amortization (IFRS) | −1,831 | −1,872 | −1,362 | −1,272 | −1,268 |
Profits and Margins | |||||
Cloud gross margin (in % of corresponding revenue, IFRS) | 66.6 | 63.5 | 58.6 | 56.0 | 56.1 |
Cloud gross margin (in % of corresponding revenue, non-IFRS) | 69.7 | 68.2 | 63.1 | 62.2 | 64.4 |
Cloud and software gross margin (in % of corresponding revenue, IFRS) | 79.7 | 79.6 | 79.8 | 80.1 | 81.0 |
Cloud and software gross margin (in % of corresponding revenue, non-IFRS) | 81.2 | 81.6 | 81.5 | 82.2 | 83.7 |
Services gross margin (in % of corresponding revenue, IFRS) | 22.7 | 19.4 | 19.2 | 19.3 | 15.1 |
Services gross margin (in % of corresponding revenue, non-IFRS) | 27.0 | 25.0 | 22.9 | 23.5 | 18.2 |
Software and support gross margin (IFRS, in %) | 86.7 | 86.6 | 86.6 | 85.8 | 85.9 |
Software and support gross margin (non-IFRS, in %) | 87.4 | 87.4 | 87.4 | 87.0 | 87.4 |
Gross margin (in % of total revenue, IFRS) | 71.2 | 69.7 | 69.8 | 69.9 | 70.2 |
Gross margin (in % of total revenue, non-IFRS) | 73.1 | 72.3 | 71.8 | 72.5 | 72.9 |
Operating profit (IFRS) | 6,623 | 4,473 | 5,703 | 4,877 | 5,135 |
Non-IFRS adjustments | 1,664 | 3,735 | 1,459 | 1,892 | 1,498 |
Operating profit (non-IFRS) | 8,287 | 8,208 | 7,163 | 6,769 | 6,633 |
Operating margin (in % of total revenue, IFRS) | 24.2 | 16.2 | 23.1 | 20.8 | 23.3 |
Operating margin (in % of total revenue, non-IFRS) | 30.3 | 29.7 | 29.0 | 28.9 | 30.1 |
Financial income, net | 776 | 198 | −47 | 188 | −29 |
Profit before tax (PBT) | 7,220 | 4,596 | 5,600 | 5,029 | 4,872 |
PBT margin (in % of revenues) | 26.4 | 16.7 | 22.7 | 21.4 | 22.1 |
Income tax expense | −1,938 | −1,226 | −1,511 | −983 | −1,242 |
Profit after tax | 5,283 | 3,370 | 4,088 | 4,046 | 3,629 |
Effective tax rate (IFRS, in %) | 26.8 | 26.7 | 27.0 | 19.5 | 25.5 |
Effective tax rate (non-IFRS, in %) | 26.5 | 26.2 | 26.3 | 22.8 | 26.9 |
Return on equity (profit after tax in percentage of average equity) | 17 | 11 | 15 | 16 | 15 |
Order Entry | |||||
Current cloud backlog | 7,155 | 6,681 | NA | NA | NA |
Orders – number of cloud deals (in transactions) | 16,888 | 15,679 | 13,813 | 11,330 | 8,844 |
Share of cloud orders greater than €5 million based on total cloud order entry volume (in %) | 29 | 31 | 30 | 31 | 31 |
Share of cloud orders smaller than €1 million based on total cloud order entry volume (in %) | 34 | 32 | 32 | 31 | 30 |
Orders – number of on-premise software deals (in transactions) | 45,616 | 52,584 | 58,530 | 59,147 | 57,291 |
Share of software orders greater than €5 million (in % of total software order entry) | 30 | 32 | 29 | 30 | 29 |
Share of software orders less than €1 million (in % of total software order entry) | 36 | 35 | 39 | 40 | 38 |
Non-IFRS Adjustments | |||||
Revenue adjustments | 5 | 81 | 33 | 3 | 5 |
Adjustment for acquisition-related charges | 577 | 689 | 577 | 587 | 680 |
Adjustment for share-based payment expenses | 1,084 | 1,835 | 830 | 1,120 | 785 |
Adjustment for restructuring | −3 | 1,130 | 19 | 182 | 28 |
Segment Results | |||||
Applications, Technology & Support | |||||
Segment revenue | 21,680 | 21,664 | 19,873 | 18,932 | 17,921 |
Segment gross margin (in % of corresponding revenue) | 80 | 81 | 81 | 82 | 83 |
Segment profit | 9,423 | 9,454 | 8,583 | 8,257 | 8,226 |
Segment margin (Segment profit in % of Segment revenue) | 43 | 44 | 43 | 44 | 46 |
Concur | |||||
Segment revenue | 1,505 | 1,609 | 1,338 | 1,165 | 985 |
Segment gross margin (in % of corresponding revenue) | 79 | 78 | 76 | 75 | 75 |
Segment profit | 564 | 620 | 482 | 405 | 342 |
Segment margin (Segment profit in % of Segment revenue) | 37 | 39 | 36 | 35 | 35 |
Qualtrics | |||||
Segment revenue | 681 | 508 | NA | NA | NA |
Segment gross margin (in % of corresponding revenue) | 78 | 78 | NA | NA | NA |
Segment profit | 19 | 8 | NA | NA | NA |
Segment margin (Segment profit in % of Segment revenue) | 3 | 2 | NA | NA | NA |
Services | |||||
Segment revenue | 3,157 | 3,447 | 3,165 | 3,012 | 2,840 |
Segment gross margin (in % of corresponding revenue) | 29 | 24 | 21 | 20 | 19 |
Segment profit | 499 | 362 | 249 | 160 | 137 |
Segment margin (Segment profit in % of Segment revenue) | 16 | 10 | 8 | 5 | 5 |
Liquidity and Cash Flow | |||||
Net cash flows from operating activities | 7,194 | 3,496 | 4,303 | 5,045 | 4,628 |
Net cash flows from investing activities | −2,986 | −7,021 | −3,066 | −1,112 | −1,799 |
Net cash flows from financing activities | −3,997 | 102 | 3,283 | −3,406 | −2,705 |
Capital expenditure | −816 | −817 | −1,458 | −1,275 | −1,001 |
Free cash flow10 | 6,000 | 2,276 | 2,844 | 3,770 | 3,627 |
Free cash flow in % of total revenue | 22 | 8 | 12 | 16 | 16 |
Cash conversion rate (net cash flows from operating activities in % of profit after tax) |
136 | 104 | 105 | 125 | 128 |
Cash and cash equivalents | 5,311 | 5,314 | 8,627 | 4,011 | 3,702 |
Short-term investments | 1,470 | 67 | 211 | 774 | 971 |
Group liquidity (cash and cash equivalents/short-term investments/restricted cash) |
6,781 | 5,382 | 8,838 | 4,785 | 4,673 |
Financial debts | −13,283 | −13,668 | −11,331 | −6,264 | −7,826 |
Net liquidity (net debt) | −6,503 | −8,286 | −2,493 | −1,479 | −3,153 |
Days sales outstanding (DSO, in days) | 78 | 71 | 70 | 70 | 74 |
Assets, Equity and Liabilities | |||||
Trade and other receivables | 6,730 | 8,037 | 6,480 | 6,017 | 6,050 |
Total current assets | 15,069 | 15,213 | 16,620 | 11,930 | 11,564 |
Goodwill | 27,560 | 29,159 | 23,736 | 21,271 | 23,311 |
Total non-current assets | 43,402 | 44,999 | 34,881 | 30,554 | 32,713 |
Total current liabilities (including contract liabilities/deferred income) | 12,842 | 14,462 | 10,486 | 10,210 | 9,674 |
Total non-current liabilities (including contract liabilities/deferred income) | 15,702 | 14,929 | 12,138 | 6,759 | 8,205 |
Total equity (including contract liabilities/deferred income) | 29,928 | 30,822 | 28,877 | 25,515 | 26,397 |
Total assets | 58,472 | 60,215 | 51,502 | 42,484 | 44,277 |
Contract liabilities/Deferred income – current (IFRS)7 | 4,150 | 4,266 | 3,028 | 2,771 | 2,383 |
Equity ratio (total equity in % of total assets) | 51 | 51 | 56 | 60 | 60 |
Debt ratio (total liabilities2 in % of total assets) | 49 | 49 | 44 | 40 | 40 |
Investments in goodwill, intangible assets, or property, plant, and equipment (including capitalizations due to acquisitions) | 1,780 | 8,090 | 3,715 | 1,630 | 1,145 |
Key SAP Stock Facts | |||||
Issued shares7 (in millions) | 1,229 | 1,229 | 1,229 | 1,229 | 1,229 |
Earnings per share, basic (in €) | 4.35 | 2.78 | 3.42 | 3.35 | 3.04 |
Earnings per share, basic (non-IFRS, in €) | 5.41 | 5.11 | 4.35 | 4.43 | 3.77 |
Earnings per share, diluted (in €) | 4.35 | 2.78 | 3.42 | 3.35 | 3.04 |
Dividend per share3 (in €) | 1.85 | 1.58 | 1.50 | 1.40 | 1.25 |
Total dividend distributed3 | 2,273 | 1,886 | 1,790 | 1,671 | 1,498 |
Total dividend distributed3 (in % of profit after tax) | 43 | 56 | 44 | 41 | 41 |
SAP share price7 (in €) | 107.22 | 120.32 | 86.93 | 93.45 | 82.81 |
SAP share price – peak (in €) | 142.26 | 124.72 | 108.02 | 100.35 | 82.81 |
SAP share price – low (in €) | 87.63 | 84.31 | 82.47 | 82.43 | 64.90 |
Market capitalization7 (in € billions) | 131.70 | 147.81 | 106.80 | 114.80 | 101.73 |
Return on SAP shares4, 1-year investment period (in %) | −10.9 | 38.4 | −7.0 | 12.8 | 14.7 |
Return on SAP shares4, 5-year investment period (in %) | 7.9 | 15.6 | 6.9 | 9.0 | 17.3 |
Return on SAP shares4, 10-year investment period (in %) | 11.0 | 13.9 | 13.2 | 10.2 | 9.2 |
Employees and Personnel Expenses | |||||
Number of employees5, 7 | 102,430 | 100,330 | 96,498 | 88,543 | 84,183 |
Number of employees, annual average5 | 101,476 | 99,157 | 93,709 | 86,999 | 80,609 |
Number of employees in research and development5, 7 | 29,580 | 27,634 | 27,060 | 24,872 | 23,363 |
Personnel expenses | 13,420 | 14,870 | 11,595 | 11,643 | 10,229 |
Personnel expenses – excluding share-based payments | 12,336 | 13,035 | 10,765 | 10,523 | 9,444 |
Personnel expenses per employee – excluding share-based payments (in € thousands) | 122 | 131 | 115 | 121 | 117 |
Operating profit per employee (in € thousands) | 65 | 45 | 61 | 56 | 64 |
Women working at SAP (in %) | 33.6 | 33.5 | 33.0 | 32.8 | 32.4 |
Women in management7 (total, in % of total number of employees) | 27.5 | 26.4 | 25.7 | 25.4 | 24.5 |
Women managing managers6, 7 (in %) | 23.5 | 22.5 | 21.1 | 21.7 | 20.8 |
Women managing teams6, 7 (in %) | 29.0 | 27.8 | 27.5 | 26.8 | 25.9 |
Employee Engagement Index (in %) | 86 | 83 | 84 | 85 | 85 |
Business Health Culture Index (BHCI, in %) | 80 | 80 | 78 | 79 | 78 |
Leadership Trust Index (LTI, as NPS) | 62 | 59 | 60 | 61 | 57 |
Employee retention (in %) | 95.3 | 93.3 | 93.9 | 94.6 | 94.3 |
Total turnover rate (in %) | 7.0 | 10.7 | 7.6 | 7.9 | 7.7 |
Customer | |||||
Customer Net Promoter Score9 | 4.0 | −6.0 | −5.0 | 17.8 | 19.2 |
Environment | |||||
Net greenhouse gas emissions (in kilotons) | 135 | 300 | 310 | 325 | 380 |
Greenhouse gas emissions per employee5 (in tons) | 1.3 | 3.0 | 3.3 | 3.8 | 4.7 |
Greenhouse gas emissions per € revenue (in grams) | 4.9 | 10.9 | 12.6 | 13.9 | 17.3 |
Total energy consumption (in GWh) | 693 | 955 | 919 | 920 | 950 |
Energy consumed per employee5 (in kWh) | 6,800 | 9,600 | 9,800 | 10,600 | 11,800 |
Total data center electricity consumption (in GWh) | 361 | 338 | 318 | 265 | 243 |
Data center energy consumption per € revenue8 (in Wh) | 13 | 12 | 13 | 11 | 11 |
Renewable electricity sourced (in %) | 100 | 100 | 100 | 100 | 100 |
1 SAP Group. Amounts according to IFRS, unless otherwise stated.
2 As sum of current and non-current liability
3 Numbers are based on the proposed dividend and on level of treasury stock at year end.
4 Average annual return assuming all dividends are reinvested.
5 Full-time equivalents
6 Relates to different levels of management position.
7 Numbers at year end.
8 Data center energy consumption normalized against € revenue represents the required energy to develop and operate solutions in internal and external data centers.
9 Due to changes in sampling in 2018, Customer NPS is not fully comparable to the prior years' scores.
10 As at January 1, 2019, we changed our free cash flow definition to avoid effects resulting from the adoption of IFRS 16.