Form 6-K SAP SE For: Apr 14
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
April 14, 2021
Commission file number:
1-14251
SAP SE
(Exact name of registrant as specified in its charter)
SAP EUROPEAN COMPANY
(Translation of registrant's name into English)
Dietmar-Hopp-Allee 16
69190 Walldorf
Federal Republic of Germany
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
| Form 20-F | x | Form 40-F | ¨ |
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
| Yes | ¨ | No | x |
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_______.
SAP SE
FORM 6-K
On April 13, 2021, SAP SE, (“SAP"), issued a press release (the “Press Release”) announcing its preliminary financial results for the first quarter ended March 31, 2021. The Press Release is attached as Exhibit 99.1 hereto and incorporated by reference herein.
This Press Release discloses certain non-IFRS measures. These measures are not prepared in accordance with IFRS and are therefore considered non-IFRS financial measures. The non-IFRS financial measures that we report should be considered in addition to, and not as substitutes for or superior to, revenue, operating income, cash flows, or other measures of financial performance prepared in accordance with IFRS.
Please refer to Explanations of Non-IFRS Measures online (http://global.sap.com/corporate-en/investors/pdf/sap-non-ifrs-measures.pdf) for further information regarding the non-IFRS measures.
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission (the "SEC"), including SAP's most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
2
EXHIBITS
| Exhibit No. | Exhibit |
| 99.1 | Press Release dated April 13, 2021 |
3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| SAP SE | |
| (Registrant) |
| By: | /s/ Christopher Sessar | |||
| Name: | Dr. Christopher Sessar | |||
| Title: | Chief Accounting Officer | |||
| By: | /s/ Julia Zicke | |||
| Name: | Dr. Julia Zicke | |||
| Title: | Head of Corporate External Reporting |
|||
Date: April 14, 2021
4
EXHIBIT INDEX
| Exhibit No. | Exhibit |
| 99.1 | Press Release dated April 13, 2021 |
5
Exhibit 99.1
For Immediate Release
| SAP Announces Preliminary First Quarter 2021 Results | April 13, 2021 |
SAP Pre-Announces Stellar
Start to 2021
Fastest Growth in New Cloud Business in Five Years Reaccelerates Current Cloud Backlog, Up 19% at Constant
Currencies, to €7.6 Billion
| · | IFRS Cloud Revenue Up 7%; Non-IFRS Cloud Revenue Up 13% At Constant Currencies |
| · | IFRS Software Licenses Revenue Up 7%; Non-IFRS Software Licenses Revenue Up 11% At Constant Currencies, Fastest Growth in Five Years |
| · | IFRS Cloud & Software Revenue Up 1%; Non-IFRS Cloud & Software Revenue Up 6% At Constant Currencies |
| · | IFRS Operating Profit Down 21%; Non-IFRS Operating Profit Sharply Up 24% At Constant Currencies |
| · | IFRS Operating Margin Down 3.4pp; Non-IFRS Operating Margin Up 4.9pp At Constant Currencies |
| · | IFRS EPS Up 29%; Non-IFRS EPS Up 63% |
| · | Raises Full-Year Outlook |
“We are seeing very strong growth across all our applications. And we are just getting started. Our new offering ‘RISE with SAP’ is rapidly becoming a massive accelerator to our customers’ business transformations with our platform at the center. Together with our unique ecosystem of more than 22,000 partners and with a strong innovation pipeline for the year, we are well on track with our strategy to deliver robust cloud growth.”
Christian Klein, CEO
“The first quarter of 2021 was unique in many ways. We had the highest order entry growth across cloud and software in five years while posting the strongest increase in Non-IFRS operating profit and margin in a decade. In the mid term SAP’s expedited shift to the cloud will accelerate topline growth and significantly increase the resiliency and predictability of our business.”
Luka Mucic, CFO
| SAP Announces Preliminary First Quarter 2021 Results | 1 |
First Quarter Business Update
Walldorf, Germany – April 13, 2021. After an initial review of its first quarter 2021 performance, SAP SE (NYSE: SAP) today announced its preliminary financial results for the first quarter ended March 31, 2021. All 2021 figures in this release are approximate due to the preliminary nature of the announcement.
SAP saw a sharp acceleration in new cloud business across its cloud portfolio, as well as a strong start for ‘RISE with SAP’ which is driving customers’ business transformation in the cloud. Software licenses had strong, double-digit growth at constant currencies. SAP had significant competitive wins in ERP, digital supply chain and across its broader cloud solution portfolio.
Despite the continued impact of global travel restrictions on Concur’s business, SAP’s cloud revenue growth was resilient in the first quarter, up 13% at constant currencies. SaaS/PaaS cloud revenue outside the Intelligent Spend business was up 24% at constant currencies. Looking forward, SAP’s strong new cloud business performance is expected to reaccelerate cloud revenue growth.
Throughout the COVID-19 crisis, SAP continues to serve its customers effectively with an embedded virtual sales and remote implementation strategy. The company retains a disciplined approach to hiring and discretionary spend while capturing natural savings e.g. from lower travel, facility-related costs and virtual events. The prior year included a cost of approximately €36 million in relation to the cancellation of its in-person annual SAPPHIRE NOW and other customer events, as well as normal travel behavior. These factors in combination with the strong topline performance drove materially higher operating profit (non-IFRS at constant currencies) and operating margin both of which were significantly above market expectations.
First Quarter Financial Performance
Current cloud backlog was up 15% to €7.63 billion and up 19% (at constant currencies). Cloud revenue was up 7% year over year to €2.14 billion (IFRS), up 7% to €2.15 billion (non-IFRS) and up 13% (non-IFRS at constant currencies). Software licenses revenue was up 7% year over year to €0.48 billion (IFRS and non-IFRS) and up 11% (non-IFRS at constant currencies). Cloud and software revenue was up 1% to €5.43 billion (IFRS and non-IFRS) and up 6% (non-IFRS at constant currencies). Services revenue was down 18% year over year to €0.9 billion (IFRS and non-IFRS) and down 14% (non-IFRS at constant currencies). This revenue decline reflects the November 2020 divestiture of SAP Digital Interconnect, which contributed approximately €90 million of services revenue (IFRS and non-IFRS) in the first quarter of 2020. Total revenue was down 3% year over year to €6.35 billion (IFRS and non-IFRS) and up 2% (non-IFRS at constant currencies).
The share of more predictable revenue1 grew by approximately 2 percentage points year over year to approximately 78% in the first quarter.
IFRS operating profit decreased 21% to €0.96 billion and IFRS operating margin decreased by 3.4 percentage points to 15.1% due to higher share-based compensation expenses (primarily related to Qualtrics IPO awards) and restructuring expenses related to the accelerated harmonization of SAP’s cloud delivery infrastructure. Non-IFRS operating profit increased 17% to €1.74 billion, up 24% (non-IFRS at constant currencies) and operating margin increased by 4.7 percentage points to 27.4%, up 4.9 percentage points (non-IFRS at constant currencies).
Earnings per share increased 29% to €0.88 (IFRS) and increased 63% to €1.40 (non-IFRS) reflecting another strong contribution from Sapphire Ventures.
1 Share of more predictable revenue is the total of non-IFRS cloud revenue and non-IFRS software support revenue as a percentage of total revenue.
| SAP Announces Preliminary First Quarter 2021 Results | 2 |
Financial Results at a Glance
First Quarter 2021
| IFRS | Non-IFRS1) | ||||||
| € billion, unless otherwise stated | Q1 2021 | Q1 2020 | ∆ in % | Q1 2021 | Q1 2020 | ∆ in % | ∆ in % constant currency |
| Current Cloud Backlog2) | NA | NA | NA | 7.63 | 6.63 | 15 | 19 |
| Cloud revenue | 2.14 | 2.01 | 7 | 2.15 | 2.01 | 7 | 13 |
| Software licenses revenue | 0.48 | 0.45 | 7 | 0.48 | 0.45 | 7 | 11 |
| Software support revenue | 2.80 | 2.93 | –5 | 2.80 | 2.93 | –5 | 0 |
| Software licenses and support revenue | 3.28 | 3.39 | –3 | 3.28 | 3.39 | –3 | 1 |
| Cloud and software revenue | 5.43 | 5.40 | 1 | 5.43 | 5.40 | 1 | 6 |
| Total revenue | 6.35 | 6.52 | –3 | 6.35 | 6.52 | –3 | 2 |
| Share of more predictable revenue (in %) | 78 | 76 | 2pp | 78 | 76 | 2pp | |
| Operating profit (loss) | 0.96 | 1.21 | –21 | 1.74 | 1.48 | 17 | 24 |
| Profit (loss) after tax | 1.07 | 0.81 | 32 | 1.72 | 1.01 | 70 | |
| Operating margin (in %) | 15.1 | 18.6 | –3.4pp | 27.4 | 22.7 | 4.7pp | 4.9pp |
| Basic earnings per share (in €) | 0.88 | 0.68 | 29 | 1.40 | 0.85 | 63 | |
| Number of employees (FTE, March 31) | 103,142 | 101,150 | 2 | NA | NA | NA | NA |
1) For a detailed description of SAP’s non-IFRS measures Explanation of Non-IFRS Measures online.
2) As this is an order entry metric, there is no IFRS equivalent.
All figures are preliminary and unaudited. Due to rounding, numbers may not add up precisely.
| SAP Announces Preliminary First Quarter 2021 Results | 3 |
Non-IFRS Adjustments
The total difference between non-IFRS revenue metrics and the respective IFRS revenue metrics results from adjusting the impact of business combination fair value accounting. In the first quarter, the difference between non-IFRS operating profit and IFRS operating profit includes, in addition to the revenue adjustments of €0.00 billion (Q1 2020: €0.00 billion),
· adjustments for acquisition-related charges of €0.15 billion (Q1 2020: €0.16 billion),
· adjustments for share-based payment expenses of €0.47 billion (Q1 2020: €0.09 billion) and
· adjustments for restructuring expenses of €0.16 billion (Q1 2020: €0.02 billion).
For more details on the individual adjusted expense and revenue categories, our reasons for providing non-IFRS measures and the limitations of our non-IFRS measures please refer to Explanation of Non-IFRS Measures.
Business Outlook
SAP raises its full-year 2021 outlook reflecting the strong new cloud business performance which is expected to reaccelerate cloud revenue growth. The Company continues to expect a software licenses revenue decline for the full year as more customers turn to the “RISE with SAP” subscription offering for their mission-critical core processes. This outlook also continues to assume the COVID-19 crisis will begin to recede as vaccine programs roll out globally, leading to a gradually improving global demand environment in the second half of 2021.
SAP now expects:
| · | €9.2 – 9.5 billion non-IFRS cloud revenue at constant currencies (2020: €8.09 billion), up 14% to 18% at constant currencies. The previous range was €9.1 – 9.5 billion at constant currencies. |
| · | €23.4 – 23.8 billion non-IFRS cloud and software revenue at constant currencies (2020: €23.23 billion), up 1% to 2% at constant currencies. The previous range was €23.3 – 23.8 billion at constant currencies. |
| · | €7.8 – 8.2 billion non-IFRS operating profit at constant currencies (2020: €8.28 billion), down 1% to 6% at constant currencies. |
| · | The share of more predictable revenue (defined as the total of cloud revenue and software support revenue) to reach approximately 75% (2020: 72%). |
| SAP Announces Preliminary First Quarter 2021 Results | 4 |
Additional Information
This press release and all information therein is preliminary and unaudited.
First Quarter 2021 Quarterly Statement
SAP’s first quarter 2021 quarterly statement will be published on April 22, 2021 and will be available for download at www.sap.com/investor.
Webcast
SAP senior management will host a financial analyst conference call on Thursday, April 22nd 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 results 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: 77% of the world’s transaction revenue touches an SAP® system. 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 http://www.sap.com.
For more information, financial community only:
| Stefan Gruber | +49 (6227) 7-44872 | [email protected], CET |
Follow SAP Investor Relations on Twitter at @sapinvestor.
For more information, press only:
| Joellen Perry | +1 (650) 445-6780 | [email protected], PT | |
| Marcus Winkler | +49 (6227) 7-67497 | [email protected], CET |
For customers interested in learning more about SAP products:
| Global Customer Center: | +49 180 534-34-24 | ||
| United States Only: | +1 (800) 872-1SAP (+1-800-872-1727) |
Note to editors:
To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels. To view video stories on diverse topics, visit www.sap-tv.com. From this site, you can embed videos into your own Web pages, share video via e-mail links and subscribe to RSS feeds from SAP TV.
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission ("SEC"), including SAP's most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
© 2021 SAP SE. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE. The information contained herein may be changed without prior notice.
Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies. Please see www.sap.com/about/legal/copyright.html for additional trademark information and notice.
| SAP Announces Preliminary First Quarter 2021 Results | 5 |
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