SAP SE Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2015; Provides Financial Guidance for 2016 and 2017
For the full year, on IFRS basis, the company reported total revenue of 20,797 million against 17,560 million a year ago. Operating profit was 4,251 million against 4,331 million a year ago. Profit before tax was 3,990 million against 4,355 million a year ago. Profit attributable to owners of parent was 3,069 million or 2.56 per diluted share against 3,280 million or 2.74 per diluted share a year ago. Net cash flows from operating activities were 3,639 million against 3,499 million a year ago. Purchase of intangible assets and property, plant, and equipment was 637 million against 737 million a year ago.
For the quarter, on non-IFRS basis, the company reported total revenue of 6,347 million against 5,469 million a year ago. Operating profit was 2,280 million against 2,127 million a year ago. Profit before tax was 2,226 million against 2,108 million a year ago. Profit attributable to owners of parent was 1,677 million or 1.40 per basic share against 1,569 million or 1.31 per basic share a year ago.
For the full year, on non-IFRS basis, the company reported total revenue of 20,809 million against 17,580 million a year ago. Operating profit was 6,346 million against 5,638 million a year ago. Profit before tax was 6,085 million against 5,662 million a year ago. Profit attributable to owners of parent was 4,513 million or 3.77 per basic share against 4,182 million or 3.50 per basic share a year ago.
The company is providing the guidance for the full year 2016. Based on the continued strong momentum in SAP's cloud business the Company expects full year 2016 non-IFRS cloud subscriptions and support revenue to be in a range of 2.95 - 3.05 billion at constant currencies compared to 2.30 billion in 2015. The upper end of this range represents a growth rate of 33% at constant currencies. The Company expects full year 2016 non-IFRS cloud and software revenue to increase by 6% - 8% at constant currencies compared to 17.23 billion in 2015. The Company expects full-year 2016 non-IFRS operating profit to be in a range of 6.4 billion - 6.7 billion at constant currencies compared to 6.35 billion in 2015.
Looking beyond 2016, SAP is raising its 2017 ambition to reflect both the current exchange rate environment and excellent business momentum. Assuming a stable exchange rate environment going forward SAP now expects non-IFRS cloud subscriptions and support revenue in a range of 3.8 - 4.0 billion in 2017. The upper end of this range represents a 2015 to 2017 CAGR of 32%. Non-IFRS total revenue is now expected to be in a range of 23.0 - 23.5 billion in 2017. The Company now expects its 2017 non-IFRS operating profit to be in a range of 6.7 - 7.0 billion. SAP continues to anticipate that the fast-growing cloud business along with growth in support revenue will drive a higher share of more predictable revenue. Given the current software license revenue momentum the Company now expects the total of cloud subscriptions & support revenue and software support revenue to be in a range of 63% - 65% of total revenue in 2017.
The Company is not adjusting its long term, high level 2020 ambition at this time. The Company's 2020 ambition communicated in 2015 was: 7.5 billion to 8.0 billion non-IFRS cloud subscriptions and support revenue; 26 billion to 28 billion non-IFRS total revenue; 8.0 billion to 9.0 billion non-IFRS operating profit; 70% to 75% share of more predictable revenue (defined as the total of cloud subscriptions & support revenue and software support revenue).