DGAP-Adhoc

SAP SE: SAP Announces Preliminary Results for Q3 2021 - Seite 3

SAP continues to expect operating cash flow of approximately €6.0 billion (2020 €7.2 billion) and free cash flow above €4.5 billion (2020 €6.0 billion).

Contact:
Anthony Coletta [phone] [e-mail], CET
Stefan Gruber [phone] [e-mail], CET

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Information and Explanation of the Issuer to this News:

Our strategy is clearly working. Customers are choosing SAP for their business transformation in the cloud. We see record adoption of our applications and our platform. This has resulted in strong acceleration of our cloud growth.'

Christian Klein, CEO

 

This has been an excellent quarter across all key financial metrics. We are seeing sustained, strong progress in SAP's transformation. Our cloud business is growing at an accelerating pace and has led to our improved full year outlook.'

Luka Mucic, CFO

 

Non-IFRS Adjustments

Due to the change in our non-IFRS definition in the second quarter 2021 effective for the full year 2021, there are no longer adjustments of our IFRS revenue measures (Q3 2020: €0.00 billion). For more information on this changed definition, the individual adjusted expense categories, our reasons for providing non-IFRS measures and the limitations of our non-IFRS measures please refer to Explanation of Non-IFRS Measures.

In the third quarter, the difference between non-IFRS operating profit and IFRS operating profit includes

• adjustments for acquisition-related charges of €0.16 billion (Q3 2020: €0.15 billion),
• adjustments for share-based payment expenses of €0.70 billion (Q3 2020: €0.45 billion) and
• adjustments for restructuring expenses of -€0.01 billion (Q3 2020: -€0.01 billion).

Additional Information

This press release and all information therein is unaudited.

Definition of key growth metrics

Current cloud backlog (CCB) is the contractually committed cloud revenue we expect to recognize over the upcoming 12 months as of a specific key date. Thus, it is a subcomponent of our overall remaining performance obligations following IFRS 15.120. For CCB, we take into consideration committed deals only. CCB can be regarded as a lower boundary for cloud revenue to be recognized over the next 12 months, as it excludes utilization-based models without pre-commitments and committed deals, both new and renewal, closed after the key date. For our committed cloud business, we believe the CCB is a valuable indicator of go-to-market success, as it reflects both new contracts closed as well as existing contracts renewed.