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Q4 and Full-Year
Financial Results

January 29, 2021


The world's leading companies are turning to SAP to become intelligent enterprises. We are reinventing how businesses run by accelerating our customers’ transformation in the cloud. Our strong finish to the year and the launch of RISE with SAP, our new holistic business transformation offering, position us well to meet our new outlook targets.
Christian Klein, CEO


In a uniquely challenging environment, 2020 was a record year for cash flow in every single quarter and the full year. Our better-than-anticipated top line performance combined with our quick response on the cost side drove strong operating profit. SAP’s expedited shift to the cloud will drive long-term, sustainable growth while significantly increasing the resiliency and predictability of our business.

Luka Mucic, CFO

Financial Results at a Glance

Fourth Quarter 2020

    IFRS   Non-IFRS1)
€ million, unless otherwise stated   Q4 2020   Q4 2019   ∆ in %   Q4 2020   Q4 2019   ∆ in %   ∆ in % const. curr.
Current cloud backlog2)   NA   NA   NA   7,155   6,681   7   14
Cloud revenue   2,041   1,896   8   2,044   1,907   7   13
Software licenses and support revenue   4,538   4,950   −8   4,538   4,950   −8   −4
Cloud and software revenue   6,579   6,846   −4   6,582   6,857   −4   1
Total revenue   7,538   8,041   −6   7,541   8,052   −6   −2
Share of more predictable revenue (in %)   65   60   4pp   65   60   4pp    
Operating profit (loss)   2,655   2,102   26   2,768   2,839   −3   3
Profit (loss) after tax   1,932   1,637   18   2,022   2,190   −8    
Basic earnings per share (in €)   1.62   1.36   19   1.69   1.82   −7    
Number of employees (FTE, December 31)   102,430   100,330   2   NA   NA   NA   NA

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 IFRS equivalent.

Due to rounding, numbers may not add up precisely.

Full Year 2020

    IFRS   Non-IFRS1)
€ million, unless otherwise stated   Q1–Q4
2020
  Q1–Q4
2019
  ∆ in %   Q1–Q4
2020
  Q1–Q4
2019
  ∆ in %   ∆ in % const. curr.
Current Cloud Backlog2)   NA   NA   NA   7,155   6,681   7   14
Cloud revenue   8,080   6,933   17   8,085   7,013   15   18
Software licenses and support revenue   15,148   16,080   −6   15,148   16,080   −6   −4
Cloud and software revenue   23,228   23,012   1   23,233   23,093   1   3
Total revenue   27,338   27,553   −1   27,343   27,634   −1   1
Share of more predictable revenue (in %)   72   67   5pp   72   67   4pp    
Operating profit (loss)   6,621   4,473   48   8,283   8,208   1   4
Profit (loss) after tax   5,280   3,370   57   6,529   6,152   6    
Basic earnings per share (in €)   4.35   2.78   56   5.41   5.11   6    
Number of employees (FTE, December 31)   102,430   100,330   2   NA   NA   NA   NA


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 IFRS equivalent.

Due to rounding, numbers may not add up precisely.

 

Segment Results

Segment Performance Fourth Quarter 2020

    Applications, Technology & Support   Concur   Qualtrics   Services
€ million, unless otherwise stated
(Non-IFRS)
  Actual
Currency
  ∆ in %   ∆ in %
const. curr.
  Actual
Currency
  ∆ in %   ∆ in %
const. curr.
  Actual
Currency
  ∆ in %   ∆ in %
const. curr.
  Actual
Currency
  ∆ in %   ∆ in %
const. curr.
Cloud revenue   1,592   11   17   295   −19   −14   139   26   36   0   NA   NA
Segment revenue   6,207   −4   1   341   −20   −15   183   17   26   758   −16   −11
Segment profit (loss)   3,038   −3   2   121   −30   −26   10   <-100   <-100   124   5   8
Cloud gross margin (in %)   66.3   3.2pp   2.9pp   87.2   −1.4pp   −1.6pp   89.4   −0.7pp   −0.6pp   NM1)   NM1)   NM1)
Segment margin (in %)   48.9   0.6pp   0.6pp   35.7   −5.3pp   −5.3pp   5.4   11.9pp   10.9pp   16.3   3.1pp   2.9pp

1) NM = not meaningful

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