Double-Digit Growth Continues in a Challenging Market - SAP Driving the Transition to the Cloud and Gaining Market Share

   Double-Digit Growth Continues in a Challenging Market - SAP Driving the
               Transition to the Cloud and Gaining Market Share

SAP Announces Second Quarter and First Half Results 2013

PR Newswire

WALLDORF, Germany, July 18, 2013

WALLDORF, Germany, July 18, 2013 /PRNewswire/ --

  oThree Years of Double-Digit Growth – Second Quarter 2013 Non-IFRS Software
    and Software-Related Service Revenue Increased 10% at Constant Currencies
    (7% at Actual Currencies to €3.35 Billion)
  oSecond Quarter 2013 Non-IFRS Software and Cloud Subscription Revenue
    Increased 7% at Constant Currencies (3% at Actual Currencies to €1.17
    Billion)
  oTriple-Digit Year-Over-Year Growth in Cloud Subscription and Support
    Revenue, Annual Cloud Revenue Run Rate Exceeded €930 Million
  oExpanding Leadership in In-Memory Computing with SAP HANA
  oSecond Quarter 2013 Non-IFRS Operating Profit Reached €1.22 Billion, a 10%
    Increase at Constant Currencies (4% at Actual Currencies)
  oSAP Reaffirms Non-IFRS Operating Profit Outlook and Remains Committed to
    Be a Double-Digit Growth Company with an Increase of at Least 10% in
    Non-IFRS Software and Software-Related Service Revenue at Constant
    Currencies in 2013

(Logo: http://photos.prnewswire.com/prnh/20110126/AQ34470LOGO)

SAP AG (NYSE: SAP) today announced its financial results for the second
quarter and first half ended June 30, 2013.

BUSINESS HIGHLIGHTS IN THE SECOND QUARTER 2013

"The industry transformation we predicted back in 2010 is now happening at
full speed and our strategy of innovation for growth is paying off," said Bill
McDermott and Jim Hagemann Snabe, Co-CEOs of SAP. "We continued our
double-digit growth momentum, we are leading the transformation of the
industry, and our market opportunity is bigger than ever. We are gaining
market share in a challenging macroeconomic environment, and with the HANA
Enterprise Cloud, we are resolute to capture the future as the cloud company."

"SAP had a solid overall performance in the second quarter. We remained
focused on operating discipline, resulting in double-digit growth in non-IFRS
operating profit at constant currencies. We improved the profitability of our
core business and see good traction in the cloud on our way towards building a
profitable cloud business," said Werner Brandt, CFO of SAP. "We reaffirm our
full year 2013 Non-IFRS operating profit outlook and remain committed to
double-digit topline growth despite a difficult macroeconomic environment, in
particular in Asia Pacific Japan and the rapid transition to the cloud."

Second quarter non-IFRS cloud subscription and support revenue increased 166%
(171% at constant currencies) year-over-year to €183 million. SAP's non-IFRS
cloud subscription and support revenue in the second quarter outperformed many
cloud competitors on a sequential quarterly growth basis. The annual cloud
revenue run rate has now reached €932 million[1]. With approximately 30
million cloud users, SAP has the largest subscriber base in the cloud market.
Non-IFRS deferred cloud subscription and support revenue[2] was €361 million
as of June 30, 2013, a year-over-year increase of 68%. The Ariba business is
showing accelerated synergies. For the Ariba segment the trailing twelve month
network spend volume[3] was approximately $465 billion, an increase of 27%
year-over-year. More than 1.1 million companies are connected through the
Ariba network, the world's largest Web-based business trading community.

SAP HANA, the Company's platform for real-time business applications,
continues to be a major growth engine with €102 million software revenue
contribution, growing 21% year-on-year. The Company continues to expect HANA
software revenue of €650- €700 million in 2013. Customers have already shown
strong interest in SAP Business Suite powered by SAP HANA which was made
generally available in May and-- together with HANA Enterprise Cloud-- is
expected to drive adoption of the HANA platform.

SAP's double-digit growth momentum continued in the second quarter with
Non-IFRS software and software-related service revenue increasing 10% at
constant currencies (7% at actual currencies to €3.35 billion). Non-IFRS
software and cloud subscription revenue in the quarter increased 7% at
constant currencies (3% at actual currencies to €1.17 billion). Non-IFRS
operating profit reached €1.22 billion in thequarter, a 10% increase at
constant currencies (4% at actual currencies), resulting in a 60 basis points
expansion of the non-IFRS operating margin at constant currencies despite a
negative effect from the Ariba acquisition of 40 basis points. The margin
performance demonstrates that the efficiency in SAP's core business has
further improved.

Regional Performance

Second Quarter 2013

The Americas region delivered a strong second quarter in non-IFRS software and
cloud subscription revenue[4] with 18% growth year-over-year, driven by
excellent software revenue performance in Latin America-- in particular
Brazil-- and strong cloud subscription and support revenue growth in North
America. The EMEA region saw solid growth with non-IFRS software and cloud
subscription revenue increasing 3% year-over-year, despite a continued
difficult market environment and a tough year-over-year comparison. High
single-digit software revenue growth in Germany contributed to this
performance. Non-IFRS software and cloud subscription revenue in the Asia
Pacific Japan (APJ) region declined 7%, mainly due to continued macroeconomic
challenges. However, some markets in APJ, such as Southeast Asia and India,
saw strong growth in software revenue.

First Half 2013

The Americas region delivered a strong first half in non-IFRS software and
cloud subscription revenue with 29% growth year-over-year, driven by a very
strong performance in the United States and Brazil. The EMEA region saw solid
growth with non-IFRS software and cloud subscription revenue increasing 8% for
the first half of 2013 which is an impressive result in light of continued
market uncertainty. Non-IFRS software and cloud subscriptions revenue in the
APJ region declined 7% in the first half of 2013.

[1] The annual revenue run rate is the second quarter 2013 cloud division
revenue of €233 million multiplied by 4.

[2] Beginning in Q1 2013, SAP discloses non-IFRS deferred cloud subscription
and support revenue, which is a subset of the total, non-IFRS deferred revenue
number reported on the balance sheet.

[3] Network spend volume is the total value of purchase orders transacted on
the Ariba Network in the trailing 12 months.

[4] Non-IFRS software and cloud subscription revenue in the regional
paragraphs follow SAP's management view, which is calculated as the
combination of software revenue based on location of negotiation and cloud
subscription and support revenue based on customer location; growth rates at
constant currencies. See SAP's second quarter and half year interim report for
details. 

FINANCIAL RESULTS IN DETAIL

FINANCIAL HIGHLIGHTS – Second Quarter 2013



                        Second Quarter 2013^1)
                        IFRS                    Non-
                                                IFRS^2)
                                                                       %
€ million, unless       Q2 2013  Q2 2012 %      Q2 2013 Q2 2012 %      change
otherwise stated                         change                 change const.
                                                                       curr.
Software                982      1,059   −7     982     1,059   −7     −3
Cloud subscriptions and 159      52      206    183     69      166    171
support
Software and cloud      1,141    1,110   3      1,165   1,127   3      7
subscriptions
Support                 2,177    2,013   8      2,182   2,014   8      11
Software and
software-related        3,318    3,124   6      3,347   3,142   7      10
service revenue
Total revenue           4,062    3,898   4      4,091   3,916   4      8
Total operating         −3,074   −2,977  3      −2,873  −2,743  5      7
expenses
Operating profit        988      921     7      1,219   1,173   4      10
Operating margin (%)    24.3     23.6    0.7pp  29.8    30.0    −0.2pp 0.6pp
Profit after tax        724      661     10     874     831     5
Basic earnings per      0.61     0.55    11     0.73    0.70    4
share (€)
Number of employees     64,937   60,972  7      N/A     N/A     N/A    N/A
(FTE)
1) All figures are unaudited.
2) For a detailed description of SAP's non-IFRS measures see Explanation of
Non-IFRS Measures online. For a breakdown of the individual adjustments see
page F8 in the appendix to this press release.

IFRS and non-IFRS software revenue was €982 million (2012: €1.06 billion), a
decrease of 7% (3% at constant currencies). IFRS software and cloud
subscription revenue was €1.14 billion (2012: €1.11 billion), an increase of
3%. Non-IFRS software and cloud subscription revenue was €1.17 billion (2012:
€1.13 billion), an increase of 3% (7% at constant currencies). IFRS software
and software-related service revenue was €3.32 billion (2012: €3.12 billion),
an increase of 6%. Non-IFRS software and software-related service revenue was
€3.35 billion (2012: €3.14 billion), an increase of 7% (10% at constant
currencies). IFRS total revenue was €4.06 billion (2012: €3.90 billion), an
increase of 4%. Non-IFRS total revenue was €4.09 billion (2012: €3.92
billion), an increase of 4% (8% at constant currencies).

IFRS operating profit was €988 million (2012: €921 million), an increase of
7%. Non-IFRS operating profit was €1.22 billion (2012: €1.17 billion), an
increase of 4% (10% at constant currencies). IFRS operating margin was 24.3%
(2012: 23.6%), an increase of 0.7 percentage points. Non-IFRS operating margin
was 29.8% (2012: 30.0%), a decrease of 0.2 percentage points. Non-IFRS
operating margin was 30.6% at constant currencies, an increase of 0.6
percentage points. Non-IFRS operating profit and operating margin for the
second quarter 2013 were affected by the acquisition of Ariba, which impacted
the operating margin by approximately 40 basis points.

IFRS profit after tax was €724 million (2012: €661 million), an increase of
10%. Non-IFRS profit after tax was €874 million (2012: €831 million), an
increase of 5%. IFRS basic earnings per share was €0.61 (2012: €0.55), an
increase of 11%. Non-IFRS basic earnings per share was €0.73 (2012: €0.70), an
increase of 4%. The IFRS and non-IFRS effective tax rates were 24.8% (2012:
23.6%) and 26.8% (2012: 25.6%), respectively.

FINANCIAL HIGHLIGHTS – First Half 2013



                        First-Half 2013^1)
                        IFRS                    Non-IFRS^2)
                                                                       %
€ million, unless       1H 2013  1H 2012 %      1H 2013 1H 2012 %      change
otherwise stated                         change                 change const.
                                                                       curr.
Software                1,638    1,696   −3     1,638   1,696   −3     0
Cloud subscriptions and 296      81      266    350     104     238    243
support
Software and cloud      1,935    1,777   9      1,989   1,799   11     14
subscriptions
Support                 4,286    3,966   8      4,295   3,968   8      11
Software and
software-related        6,220    5,743   8      6,284   5,768   9      12
service revenue
Total revenue           7,663    7,248   6      7,727   7,273   6      9
Total operating         −6,029   −5,696  6      -5,607  -5,266  6      8
expenses
Operating profit        1,634    1,551   5      2,120   2,007   6      11
Operating margin (%)    21.3     21.4    −0.1pp 27.4    27.6    −0.2pp 0.4pp
Profit after tax        1,244    1,104   13     1,563   1,414   11
Basic earnings per      1.04     0.93    12     1.31    1.19    10
share (€)
Number of employees     64,937   60,972  7      N/A     N/A     N/A    N/A
(FTE)
1) All figures are unaudited.
2) For a detailed description of SAP's non-IFRS measures see Explanation of
Non-IFRS Measures online. For a breakdown of the individual adjustments see
page F8 in the appendix to this press release.

IFRS and non-IFRS software revenue was €1.64 billion (2012: €1.70 billion), a
decrease of 3%, (flat at constant currencies). IFRS software and cloud
subscription revenue was €1.94 billion (2012: €1.78 billion), an increase of
9%. Non-IFRS software and cloud subscription revenue was €1.99 billion (2012:
€1.80 billion), an increase of 11% (14% at constant currencies). IFRS software
and software-related service revenue was €6.22 billion (2012: €5.74 billion),
an increase of 8%. Non-IFRS software and software-related service revenue was
€6.28 billion (2012: €5.77 billion), an increase of 9% (12% at constant
currencies). IFRS total revenue was €7.66 billion (2012: €7.25 billion), an
increase of 6%. Non-IFRS total revenue was €7.73 billion (2012: €7.27
billion), an increase of 6% (9% at constant currencies).

IFRS operating profit was €1.63 billion (2012: €1.55 billion), an increase of
5%. Non-IFRS operating profit was €2.12 billion (2012: €2.01 billion), an
increase of 6% (11% at constant currencies). IFRS operating margin was 21.3%
(2012: 21.4%), a decrease of 0.1 percentage points. Non-IFRS operating margin
was 27.4% (2012: 27.6%), a decrease of 0.2 percentage points. Non-IFRS
operating margin was 28.0% at constant currencies, an increase of 0.4
percentage points.

IFRS profit after tax was €1.24 billion (2012: €1.10 billion), an increase of
13%. Non-IFRS profit after tax was €1.56 billion (2012: €1.41 billion), an
increase of 11%. IFRS basic earnings per share was €1.04 (2012: €0.93), an
increase of 12%. Non-IFRS basic earnings per share was €1.31 (2012: €1.19), an
increase of 10%. The IFRS and non-IFRS effective tax rates were 21.5% (2012:
25.0%) and 24.5% (2012: 26.7%), respectively.

Operating cash flow was €2.48 billion (2012: €2.40 billion), an increase of
3%. Free cash flow was €2.22 billion (2012: €2.13 billion), an increase of 4%.
Free cash flow was 29% of total revenue (2012: 29%). At June 30, 2013, SAP had
a total group liquidity of €3.53 billion (December 31, 2012: €2.49 billion),
which includes cash and cash equivalents and short term investments. Net
liquidity at June 30, 2013 was -€1.49 billion compared to -€2.50 billion at
December 31, 2012.

BUSINESS OUTLOOK

SAP reaffirms its full year 2013 non-IFRS operating profit outlook to be in a
range of €5.85 billion- €5.95 billion at constant currencies (2012: €5.21
billion). Although the difficult macroeconomic environment in particular in
Asia Pacific Japan and the rapid transition to the cloud have resulted in
lower software revenue expectations, SAP remains committed to be a
double-digit growth company with at least 10% growth in non-IFRS software and
software-related service revenue at constant currencies in full year 2013
(2012: €13.25 billion). This replaces the previous growth outlook for non-IFRS
software and software-related service revenue of 11% -13% at constant
currencies and the underlying guidance for software and cloud subscription
revenue.

In addition, SAP reaffirms its outlook for the fast-growing innovation
categories cloud and in-memory. The company continues to expect full year 2013
non-IFRS cloud subscription and support revenue of around €750 million at
constant currencies (2012: €343 million) and full year 2013 SAP HANA software
revenue in a range of €650- €700 million (2012: €392 million).

Additional Information

2013 revenue and profit figures include the revenue and profits from Ariba and
SuccessFactors. The comparative numbers for 2012 do not include SuccessFactors
until February 21, 2012 and Ariba until October 1, 2012.

For a more detailed description of all of SAP's non-IFRS measures and their
limitations as well as our constant currency and free cash flow figures see
Explanation of Non-IFRS Measures online.

Second Quarter 2013 Interim Report

SAP's second quarter 2013 Interim Report was published today and is available
for download at www.sap.com/investor. The interim report includes an update on
SAP's sustainability performance.

Webcast

SAP senior management will host a conference call for financial analysts and
media on Thursday, July 18th at 2:00 PM (CEST) / 1:00 PM (GMT) / 8:00 AM (EDT)
/ 5:00 AM (PDT). The conference call will be web cast live on the Company's
website at www.sap.com/investor and will be available for replay.

About SAP

As market leader in enterprise application software, SAP (NYSE: SAP) helps
companies of all sizes and industries run better. From back office to
boardroom, warehouse to storefront, desktop to mobile device-- SAP empowers
people and organizations to work together more efficiently and use business
insight more effectively to stay ahead of the competition. SAP applications
and services enable more than 248,500 customers to operate profitably, adapt
continuously, and grow sustainably. For more information, visit www.sap.com.

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.

© 2013 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or
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contained herein may be changed without prior notice.

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Appendix – Financial Information to Follow







FINANCIAL INFORMATION
FOR THE SECOND QUARTER 2013
(Condensed and Unaudited)
                                        Page
Financial Statements (IFRS)
 Income Statements – Quarter     F1
 Income Statements – Six         F2
Months
 Statements of Financial         F3-F4
Position
 Statements of Cash Flows   F5
Supplementary Financial Information
 Reconciliation from Non-IFRS    F6-F7
Numbers to IFRS Numbers
 Non-IFRS Adjustments           F8
 Revenue by Region           F9-F12



Financial Statements (IFRS)

CONSOLIDATED INCOME STATEMENTS

For the three months ended June 30
€ millions, unless otherwise                                        Change
stated                             Note      2013        2012
                                                                    in %
Software                                     982         1,059      -7
Cloud subscriptions and support              159         52         206
Software and cloud subscriptions             1,141       1,110      3
Support                                      2,177       2,013      8
Software and software-related                3,318       3,124      6
service revenue
Consulting                                   580         617        -6
Other services                               165         157        5
Professional services and other              744         774        -4
service revenue
Total revenue                                4,062       3,898      4
Cost of software and                         -598        -568       5
software-related services
Cost of professional services and            -609        -644       -5
other services
Total cost of revenue                        -1,207      -1,212     0
Gross profit                                 2,855       2,686      6
Research and development                     -567        -568       0
Sales and marketing                          -1,059      -972       9
General and administration                   -232        -222       5
Restructuring                                -17         -4         <-100
TomorrowNow litigation                       0           -2         <-100
Other operating income/expense,              9           3          >100
net
Total operating expenses                     -3,074      -2,977     3
Operating profit                             988         921        7
Other non-operating                          -2          -45        -95
income/expense, net
Finance income                               26          28         -6
Finance costs                                -49         -39        27
Financial income, net                        -23         -11        <-100
Profit before tax                            963         865        11
Income tax expense                 (6)       -239        -204       17
Profit after tax                             724         661        10
Profit attributable to                       0           0          N/A
non-controlling interests
Profit attributable to owners of             725         661        10
parent
Earnings per share – basic (in €)* (7)       0.61        0.55       11
Earnings per share – diluted (in   (7)       0.61        0.55       11
€)*
* For the three months ended June 30, 2013 and 2012, the weighted average
number of shares was 1,193 million (diluted 1,195 million) and 1,191 million
(diluted: 1,192 million), respectively (treasury stock excluded).
                                                                    F1





CONSOLIDATED INCOME STATEMENTS

For the six months ended June 30
€ millions, unless otherwise                                       Change
stated                           Note      2013        2012
                                                                   in %
Software                                   1,638       1,696       -3
Cloud subscriptions and support            296         81          266
Software and cloud subscriptions           1,935       1,777       9
Support                                    4,286       3,966       8
Software and software-related              6,220       5,743       8
service revenue
Consulting                                 1,136       1,214       -6
Other services                             306         291         5
Professional services and other            1,443       1,505       -4
service revenue
Total revenue                              7,663       7,248       6
Cost of software and                       -1,202      -1,106      9
software-related services
Cost of professional services              -1,215      -1,268      -4
and other services
Total cost of revenue                      -2,416      -2,374      2
Gross profit                               5,246       4,874       8
Research and development                   -1,124      -1,091      3
Sales and marketing                        -2,034      -1,802      13
General and administration                 -429        -431        -1
Restructuring                              -31         -4          <-100
TomorrowNow litigation                     0           5           -92
Other operating income/expense,            5           1           >100
net
Total operating expenses                   -6,029      -5,696      6
Operating profit                           1,634       1,551       5
Other non-operating                        -13         -53         -76
income/expense, net
Finance income                             56          52          8
Finance costs                              -93         -78         19
Financial income, net                      -37         -26         41
Profit before tax                          1,584       1,472       8
Income tax expense               (6)       -340        -368        -8
Profit after tax                           1,244       1,104       13
Profit attributable to                     0           0           N/A
non-controlling interests
Profit attributable to owners of           1,245       1,104       13
parent
Earnings per share – basic (in   (7)       1.04        0.93        12
€)*
Earnings per share – diluted (in (7)       1.04        0.93        12
€)*
* For the six months ended June 30, 2013 and 2012, the weighted average number
of shares was 1,193 million (diluted 1,195 million) and 1,191 million
(diluted: 1,191 million), respectively (treasury stock excluded).
Due to rounding, numbers may not add up precisely.
                                                                   F2





Consolidated Statements of Financial Position

As at June 30, 2013, and December 31, 2012
€ millions                        Notes 2013   2012
 Cash and cash equivalents            3,386  2,477
 Other financial assets         (8)   296    154
 Trade and other receivables    (9)   3,379  3,917
 Other non-financial assets           408    294
 Tax assets                           308    156
Total current assets                    7,776  6,998
 Goodwill                             13,333 13,227
 Intangible assets                    2,996  3,234
 Property, plant, and equipment       1,751  1,708
 Other financial assets         (8)   495    509
 Trade and other receivables    (9)   92     88
 Other non-financial assets           97     68
 Tax assets                           192    170
 Deferred tax assets                  761    708
Total non-current assets               19,717 19,711
Total assets                            27,494 26,710
                                               F3





€ millions                                 Notes 2013   2012
 Trade and other payables                       883    870
 Tax liabilities                                395    511
 Financial liabilities                    (10)  1,365  802
 Other non-financial liabilities                1,404  2,136
 Provision TomorrowNow litigation             235    234
 Other provisions                             390    609
Provisions                                       624    843
Deferred income                            (11)  3,125  1,386
Total current liabilities                        7,797  6,547
 Trade and other payables                     47     63
 Tax liabilities                              396    388
 Financial liabilities                  (10)  3,859  4,446
 Other non-financial liabilities              107    98
 Provisions                                   330    361
 Deferred tax liabilities                     518    574
 Deferred income                        (11)  62     62
 Total non-current liabilities                  5,319  5,991
Total liabilities                                13,116 12,538
 Issued capital                               1,229  1,229
 Share premium                                521    492
 Retained earnings                            14,212 13,973
 Other components of equity                   -263   -194
 Treasury shares                              -1,330 -1,337
 Equity attributable to owners of parent       14,369 14,163
 Non-controlling interests                     9      8
 Total equity                             (12)  14,378 14,171
Equity and liabilities                           27,494 26,710
                                                        F4

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the six months ended June 30
€ millions                                                       2013   2012
Profit after tax                                                 1,244  1,104
Adjustments to reconcile profit after taxes to net cash provided
by operating activities:
Depreciation and amortization                                    478    402
Income tax expense                                               340    368
Financial income, net                                            37     26
Decrease/increase in sales and bad debt allowances on trade      38     26
receivables
Other adjustments for non-cash items                             44     24
Decrease/increase in trade and other receivables                 470    362
Decrease/increase in other assets                                -129   -134
Decrease/increase in trade payables, provisions, and other       -945   -752
liabilities
Decrease/increase in deferred income                             1,735  1,629
Cash outflows due to TomorrowNow litigation                      -1     -4
Interest paid                                                    -80    -96
Interest received                                                33     47
Income taxes paid, net of refunds                                -782   -602
Net cash flows from operating activities                         2,482  2,400
Business combinations, net of cash and cash equivalents acquired -99    -2,757
Purchase of intangible assets and property, plant, and equipment -265   -275
Proceeds from sales of intangible assets or property, plant, and 23     22
equipment
Purchase of equity or debt instruments of other entities         -1,200 -558
Proceeds from sales of equity or debt instruments of other       1,079  941
entities
Net cash flows from investing activities                         -462   -2,627
Dividends paid                                                   -1,013 -1,310
Purchase of treasury shares                                      0      -53
Proceeds from reissuance of treasury shares                      9      69
Proceeds from issuing shares (share-based payments)              0      14
Proceeds from borrowings                                         0      1,002
Repayments of borrowings                                         0      -1,023
Net cash flows from financing activities                         -1,004 -1,301
Effect of foreign exchange rates on cash and cash equivalents    -107   -61
Net decrease/increase in cash and cash equivalents               909    -1,589
Cash and cash equivalents at the beginning of the period         2,477  4,965
Cash and cash equivalents at the end of the period               3,386  3,376
                                                                        F5





SUPPLEMENTARY FINANCIAL INFORMATION
(UNAUDITED)
RECONCILIATION FROM NON-IFRS NUMBERS TO IFRS NUMBERS

The following tables present a reconciliation from our non-IFRS numbers (including our non-IFRS at constant
currency numbers) to the respective most comparable IFRS numbers. Note: Our non-IFRS numbers are not prepared
under a comprehensive set of accounting rules or principles.
                 for the three months ended June 30
€ millions,
unless otherwise 2013                                       2012                   Change in %
stated
                                                 Non-IFRS                                          Non-IFRS
                                        Currency
                 IFRS   Adj.* Non-IFRS*          constant   IFRS   Adj.* Non-IFRS* IFRS  Non-IFRS* constant
                                        impact**
                                                 currency**                                        currency**
Revenue Numbers
Software         982    0     982       41       1,022      1,059  0     1,059     -7    -7        -3
Cloud
subscriptions    159    24    183       4        187        52     17    69        206   166       171
and support
Software and
cloud            1,141  24    1,165     45       1,209      1,110  17    1,127     3     3         7
subscriptions
Support          2,177  5     2,182     62       2,245      2,013  1     2,014     8     8         11
Software and
software-related 3,318  29    3,347     107      3,454      3,124  18    3,142     6     7         10
service revenue
Consulting       580    0     580       16       595        617    0     617       -6    -6        -3
Other services   165    0     165       4        169        157    0     157       5     5         7
Professional
services and     744    0     744       19       764        774    0     774       -4    -4        -1
other service
revenue
Total revenue    4,062  29    4,091     127      4,218      3,898  18    3,916     4     4         8
Operating
Expense Numbers
Cost of software
and              -598   76    -522                          -568   77    -491      5     6
software-related
services
Cost of
professional     -609   23    -586                          -644   34    -610      -5    -4
services and
other services
Total cost of    -1,207 99    -1,108                        -1,212 111   -1,101    0     1
revenue
Gross profit     2,855  129   2,984                         2,686  129   2,815     6     6
Research and     -567   17    -551                          -568   45    -523      0     5
development
Sales and        -1,059 44    -1,015                        -972   56    -916      9     11
marketing
General and      -232   24    -208                          -222   16    -206      5     1
administration
Restructuring    -17    17    0                             -4     4     0         <-100 N/A
TomorrowNow      0      0     0                             -2     2     0         <-100 N/A
litigation
Other operating
income/expense,  9      0     9                             3      0     3         >100  >100
net
Total operating  -3,074 201   -2,873    -54      -2,926     -2,977 234   -2,743    3     5         7
expenses
Profit Numbers
Operating profit 988    230   1,219     73       1,292      921    252   1,173     7     4         10
Other
non-operating    -2     0     -2                            -45    0     -45       -95   -95
income/expense,
net
Finance income   26     0     26                            28     0     28        -6    -6
Finance costs    -49    0     -49                           -39    0     -39       27    27
Financial        -23    0     -23                           -11    0     -11       <-100 <-100
income, net
Profit before    963    230   1,194                         865    252   1,117     11    7
tax
Income tax       -239   -81   -320                          -204   -82   -286      17    12
expense
Profit after tax 724    149   874                           661    170   831       10    5
Profit
attributable to  0      0     0                             0      0     0         N/A   N/A
non-controlling
interests
Profit
attributable to  725    149   874                           661    170   831       10    5
owners of parent
Key Ratios
Operating margin 24.3         29.8               30.6       23.6         30.0      0.7pp -0.2pp    0.6pp
in %
Effective tax    24.8         26.8                          23.6         25.6      1.2pp 1.2pp
rate in %
Earnings per
share – basic    0.61         0.73                          0.55         0.70      11    4
(in €)*
Deferred cloud
subscriptions
and support      354    7     361                           155    60    215       >100  68
revenue
 (June 30)
                                                                                                   F6



                 for the six months ended June 30
€ millions,
unless otherwise 2013                                       2012                   Change in %
stated
                                                 Non-IFRS                                           Non-IFRS
                                        Currency
                 IFRS   Adj.* Non-IFRS*          constant   IFRS   Adj.* Non-IFRS* IFRS   Non-IFRS* constant
                                        impact**
                                                 currency**                                         currency**
Revenue Numbers
Software         1,638  0     1,638     52       1,690      1,696  0     1,696     -3     -3        0
Cloud
subscriptions    296    54    350       6        356        81     23    104       266    238       243
and support
Software and
cloud            1,935  54    1,989     57       2,046      1,777  23    1,799     9      11        14
subscriptions
Support          4,286  10    4,295     106      4,402      3,966  2     3,968     8      8         11
Software and
software-related 6,220  64    6,284     163      6,448      5,743  25    5,768     8      9         12
service revenue
Consulting       1,136  0     1,136     24       1,160      1,214  0     1,214     -6     -6        -4
Other services   306    0     306       6        313        291    0     291       5      5         7
Professional
services and     1,443  0     1,443     30       1,473      1,505  0     1,505     -4     -4        -2
other service
revenue
Total revenue    7,663  64    7,727     194      7,921      7,248  25    7,273     6      6         9
Operating
Expense Numbers
Cost of software
and              -1,202 173   -1,028                        -1,106 149   -957      9      7
software-related
services
Cost of
professional     -1,215 51    -1,164                        -1,268 64    -1,204    -4     -3
services and
other services
Total cost of    -2,416 224   -2,192                        -2,374 213   -2,161    2      1
revenue
Gross profit     5,246  288   5,535                         4,874  238   5,112     8      8
Research and     -1,124 38    -1,086                        -1,091 68    -1,023    3      6
development
Sales and        -2,034 96    -1,939                        -1,802 110   -1,692    13     15
marketing
General and      -429   33    -396                          -431   40    -391      -1     1
administration
Restructuring    -31    31    0                             -4     4     0         <-100  N/A
TomorrowNow      0      0     0                             5      -5    0         -92    N/A
litigation
Other operating
income/expense,  5      0     5                             1      0     1         >100   >100
net
Total operating  -6,029 422   -5,607    -94      -5,701     -5,696 430   -5,266    6      6         8
expenses
Profit Numbers
Operating profit 1,634  486   2,120     100      2,220      1,551  456   2,007     5      6         11
Other
non-operating    -13    0     -13                           -53    0     -53       -76    -76
income/expense,
net
Finance income   56     0     56                            52     0     52        8      8
Finance costs    -93    0     -93                           -78    1     -77       19     21
Financial        -37    0     -37                           -26    1     -25       41     48
income, net
Profit before    1,584  486   2,070                         1,472  457   1,929     8      7
tax
Income tax       -340   -167  -507                          -368   -147  -515      -8     -2
expense
Profit after tax 1,244  318   1,563                         1,104  310   1,414     13     11
Profit
attributable to  0      0     0                             0      0     0         N/A    N/A
non-controlling
interests
Profit
attributable to  1,245  318   1,563                         1,104  310   1,414     13     11
owners of parent
Key Ratios
Operating margin 21.3         27.4               28.0       21.4         27.6      -0.1pp -0.2pp    0.4pp
in %
Effective tax    21.5         24.5                          25.0         26.7      -3.5pp -2.2pp
rate in %
Earnings per
share – basic    1.04         1.31                          0.93         1.19      12     10
(in €)*
Deferred cloud
subscriptions
and support      354    7     361                           155    60    215       >100   68
revenue
 (June 30)
* Adjustments in the revenue line items are for support revenue, cloud subscription revenue, and other
similarly recurring revenues that entities acquired by SAP would have recognized had they remained stand-alone
entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination
accounting rules. Adjustments in the operating expense line items are for acquisition-related charges,
share-based compensation expenses, restructuring expenses, and discontinued activities.

** Constant currency revenue and operating income figures are calculated by translating revenue and operating
income of the current period using the average exchange rates from the previous year's respective period
instead of the current period. Constant currency period-over-period changes are calculated by comparing the
current year's non-IFRS constant currency numbers with the non-IFRS number of the previous year's respective
period.
                                                                                                    F7





NON-IFRS ADJUSTMENTS
                                       04/01/ -  01/01/ -  04/01/ -  01/01/ -

€ millions, unless otherwise stated    6/30/2013 6/30/2013 6/30/2012 6/30/2012

                                                                  
Software and software-related service  3,318     6,220     3,124     5,743
revenue (IFRS)
Adjustment for deferred revenue        29        64        18        25
write-down
Software and software-related service  3,347     6,284     3,142     5,768
revenue (Non-IFRS)
Operating profit (IFRS)                988       1,634     921       1,551
 Revenue Adjustments (per above)    29        64        18        25
 Adjustment for discontinued        0         0         2         -5
activities
 Adjustment for acquisition-related 145       283       130       250
charges
 Adjustment for stock-based         39        109       98        181
compensation expenses
 Adjustment for restructuring       17        31        4         4
 Operating expense adjustments      201       422       234       430
Operating profit adjustments           230       486       252       456
Operating profit (Non-IFRS)            1,219     2,120     1,173     2,007
Profit after tax (IFRS)               724       1,244     661       1,104
 Revenue adjustments (per above)      29        64        18        25
 Operating profit adjustments (per    201       422       234       430
above)
Adjustments pre-tax                    230       486       252       457
Taxes on adjustments                   -81       -167      -82       -147
Profit after tax (Non-IFRS)            874       1,563     831       1,414
Due to rounding, numbers may not add                                 F8
up precisely.





REVENUE BY REGION
The following table presents our IFRS and non-IFRS revenue by region. Details regarding the different
views (based on location of contract negotiation respectively by customer location are described in the
note "Segment and Geographic Information" of our Consolidated Financial Statements. The table also
presents a reconciliation from our non-IFRS revenue (including our non-IFRS revenue at constant currency)
to the respective most comparable IFRS revenue.
Note: Our non- IFRS revenues are not prepared under a comprehensive set of accounting rules or principles.
Revenues by
Region –
Management View
                 for the three months ended June 30
€ millions       2013                                      2012                  Change in %
                                                Non-IFRS                                        Non-IFRS
                                       Currency
                 IFRS  Adj.* Non-IFRS*          constant   IFRS  Adj.* Non-IFRS* IFRS Non-IFRS* constant
                                       impact**
                                                currency**                                      currency**
Software revenue
by region
 EMEA         417   0     417       7        424        419   0     419       -1   -1        1
 Americas     391   0     391       21       412        435   0     435       -10  -10       -5
 APJ          174   0     174       13       187        205   0     205       -15  -15       -9
Software         982   0     982       41       1,022      1,059 0     1,059     -7   -7        -3
revenue
Software revenue
by location of
negotiation and
cloud
subscription
revenue by
region
 EMEA         441   0     441       7        448        437   0     437       1    1         3
 Americas    518   24    542       24       566        465   17    482       11   13        18
 APJ          181   0     181       14       195        209   0     209       -13  -13       -7
Software revenue
by location of
negotiation and  1,141 24    1,165     45       1,209      1,110 17    1,127     3    3         7
cloud
subscription
revenue
Revenues by
Regions –
Location of

Customers
                 for the three months ended June 30
€ millions       2013                                      2012                  Change in %
                                                Non-IFRS                                        Non-IFRS
                                       Currency
                 IFRS  Adj.* Non-IFRS*          constant   IFRS  Adj.* Non-IFRS* IFRS Non-IFRS* constant
                                       impact**
                                                currency**                                      currency**
Software revenue
by region
 EMEA         416   0     416       7        423        453   0     453       -8   -8        -7
 Americas     391   0     391       20       411        395   0     395       -1   -1        4
 APJ          175   0     175       14       189        210   0     210       -17  -17       -10
Software         982   0     982       41       1,022      1,059 0     1,059     -7   -7        -3
revenue
Cloud
subscriptions
and support
revenue by
region
 EMEA         24    0     24        1        25         18    0     18        35   35        37
 Americas     127   24    151       3        154        30    17    47        >100 >100      >100
 APJ          8     0     8         0        8          4     0     4         97   97        103
Cloud
subscriptions    159   24    183       4        187        52    17    69        206  166       171
and support
revenue
Software and
cloud
subscription
revenue by
region
 EMEA         440   0     440       7        447        471   0     471       -6   -6        -5
 Americas     518   24    542       23       565        426   16    442       22   22        28
 APJ          183   0     183       14       197        214   0     214       -15  -15       -8
Software and
cloud            1,141 24    1,165     45       1,209      1,110 17    1,127     3    3         7
subscription
revenue
                                                                                                F9
Software and
software-related
service revenue
by region
 Germany      455   0     455       0        455        436   0     436       4    4         4
 Rest of EMEA 1,054 0     1,054     19       1,073      1,026 0     1,026     3    3         5
Total EMEA       1,509 0     1,509     20       1,529      1,462 0     1,462     3    3         5
 United       953   29    982       26       1,008      843   18    861       13   14        17
States
 Rest of      337   0     337       18       355        292   0     292       16   16        22
Americas
Total Americas   1,290 29    1,319     43       1,362      1,135 18    1,153     14   14        18
 Japan        128   0     128       34       162        171   0     171       -25  -25       -6
 Rest of APJ  390   0     390       11       401        356   0     356       10   10        13
Total APJ        519   0     519       44       563        527   0     527       -2   -2        7
Software and
software-related 3,318 29    3,347     107      3,454      3,124 18    3,142     6    7         10
service revenue
Total revenue by
region
 Germany      591   0     591       0        591        575   0     575       3    3         3
 Rest of EMEA 1,254 0     1,254     24       1,278      1,233 0     1,233     2    2         4
Total EMEA       1,845 0     1,845     24       1,869      1,808 0     1,808     2    2         3
 United       1,185 29    1,214     30       1,244      1,085 18    1,103     9    10        13
States
 Rest of      419   0     420       21       441        382   0     382       10   10        15
Americas
Total Americas   1,604 29    1,634     51       1,685      1,468 18    1,486     9    10        13
 Japan        145   0     145       38       183        195   0     195       -25  -25       -6
 Rest of APJ  467   0     467       14       481        427   0     427       9    9         13
Total APJ        612   0     612       52       664        622   0     622       -2   -2        7
Total revenue   4,062 29    4,091     127      4,218      3,898 18    3,916     4    4         8
                                                                                                F10



Revenues by
Region –
Management View
                 for the six months ended June 30
€ millions       2013                                      2012                  Change in %
                                                Non-IFRS                                        Non-IFRS
                                       Currency
                 IFRS  Adj.* Non-IFRS*          constant   IFRS  Adj.* Non-IFRS* IFRS Non-IFRS* constant
                                       impact**
                                                currency**                                      currency**
Software revenue
by region
 EMEA         715   0     715       11       726        694   0     694       3    3         4
 Americas     645   0     645       24       669        674   0     674       -4   -4        -1
 APJ          278   0     278       17       295        328   0     328       -15  -15       -10
Software         1,638 0     1,638     52       1,690      1,696 0     1,696     -3   -3        0
revenue
Software revenue
by location of
negotiation and
cloud
subscription
revenue by
region
 EMEA         766   0     766       11       777        722   0     722       6    6         8
 Americas     875   55    930       28       958        721   23    744       21   25        29
 APJ          294   0     294       17       311        333   0     333       -12  -12       -7
Software revenue
by location of
negotiation and  1,935 54    1,989     57       2,046      1,777 23    1,799     9    11        14
cloud
subscription
revenue
                                                                                                F11
Revenues by
Regions –
Location of

Customers
                 for the six months ended June 30
€ millions       2013                                      2012                  Change in %
                                                Non-IFRS                                        Non-IFRS
                                       Currency
                 IFRS  Adj.* Non-IFRS*          constant   IFRS  Adj.* Non-IFRS* IFRS Non-IFRS* constant
                                       impact**
                                                currency**                                      currency**
Software revenue
by region
 EMEA         716   0     716       11       727        731   0     731       -2   -2        -1
 Americas     643   0     643       23       666        631   0     631       2    2         6
 APJ          280   0     280       17       297        333   0     333       -16  -16       -11
Software         1,638 0     1,638     52       1,690      1,696 0     1,696     -3   -3        0
revenue
Cloud
subscriptions
and support
revenue by
region
 EMEA         51    0     51        0        51         28    0     28        81   80        83
 Americas     230   54    284       5        289        47    23    70        >100 >100      >100
 APJ          15    0     15        1        16         5     0     5         >100 >100      >100
Cloud
subscriptions    296   54    350       6        356        81    23    104       266  238       243
and support
revenue
Software and
cloud
subscription
revenue by
region
 EMEA         766   0     766       12       778        759   0     759       1    1         2
 Americas     873   54    927       28       955        678   23    701       29   32        36
 APJ          295   0     295       18       313        339   0     339       -13  -13       -8
Software and
cloud            1,935 54    1,989     57       2,046      1,777 23    1,799     9    11        14
subscription
revenue
                                                                                                F11
Software and
software-related
service revenue
by region
 Germany      854   0     854       0        854        807   0     807       6    6         6
 Rest of EMEA 1,990 0     1,990     33       2,023      1,887 1     1,888     5    5         7
 Total EMEA     2,844 0     2,844     33       2,877      2,694 1     2,695     6    6         7
 United       1,760 63    1,824     30       1,854      1,535 24    1,559     15   17        19
States
 Rest of      644   0     645       32       677        546   0     546       18   18        24
Americas
 Total Americas 2,405 64    2,469     62       2,531      2,081 24    2,105     16   17        20
 Japan         263   0     263       55       318        315   0     315       -17  -17       1
 Rest of APJ  709   0     709       12       721        652   0     652       9    9         11
 Total APJ      971   0     971       68       1,039      967   0     967       0    0         7
Software and
software-related 6,220 64    6,284     163      6,448      5,743 25    5,768     8    9         12
service revenue
Total revenue by
region
 Germany      1,116 0     1,116     0        1,116      1,092 0     1,092     2    2         2
 Rest of EMEA 2,385 0     2,385     40       2,425      2,291 1     2,292     4    4         6
 Total EMEA     3,502 0     3,502     39       3,541      3,383 1     3,384     4    3         5
 United       2,209 63    2,272     36       2,308      1,998 24    2,022     11   12        14
States
 Rest of      796   0     797       39       836        715   0     715       11   11        17
Americas
 Total Americas 3,005 64    3,069     75       3,144      2,714 24    2,738     11   12        15
 Japan        296   0     296       63       359        360   0     360       -18  -18       0
 Rest of APJ  860   0     860       16       876        791   0     791       9    9         11
 Total APJ      1,156 0     1,156     79       1,235      1,151 0     1,151     0    0         7
Total revenue   7,663 64    7,727     194      7,921      7,248 25    7,273     6    6         9
* Adjustments in the revenue line items are for support revenue, cloud subscription revenue, and other
similarly recurring revenues that entities acquired by SAP would have recognized had they remained
stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of
business combination accounting rules.

** Constant currency revenue figures are calculated by translating revenue of the current period using the
average exchange rates from the previous year's respective period instead of the current period. Constant
currency period-over-period changes are calculated by comparing the current year's non-IFRS constant
currency numbers with the non-IFRS number of the previous year's respective period.

For a more detailed description of these adjustments and their limitations as well as our constant
currency figures, see our Web site
www.sap.com/corporate-en/investors/newsandreports/reporting-framework.epx under "Non-IFRS Measures and
Estimates."

Due to rounding, numbers may not add up precisely.
F12







SOURCE SAP AG

Website: http://www.sap.com
 
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