DGAP-Ad-hoc: SAP SE / Key word(s): Preliminary Results/Change in Forecast
SAP SE: SAP Pre-Announces First Quarter Results, Updates 2020 Outlook

08-Apr-2020 / 23:39 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

'As the world navigates the COVID-19 pandemic, SAP has remained focused on our employees, customers, and communities. To support them, we made our vast business networks and technology available for companies to find new sources of supply and manage demand, understand and act on sentiment across value chains that went virtual overnight, and support learning efforts at scale. Our customers will continue to rely on us to listen and engage with their employees in new ways, manage their supply chains, and connect with their customers in a virtual world where sentiment will become a leading indicator.'

Jennifer Morgan and Christian Klein, Co-CEOs

'Our multi-year emphasis on building a strong base of more predictable revenue has made SAP more resilient than ever. Combined with an even more prudent expense management and a continued focus on innovation we will weather the COVID-19 crisis and emerge stronger than before as we have done in past downturns. Our updated guidance demonstrates that even in this challenging environment SAP remains healthy and stable.'

Luka Mucic, CFO

Non-IFRS Adjustments

The total difference between non-IFRS revenue metrics und the respective IFRS revenue metrics results from adjusting the impact of business combination fair value accounting. The difference between non-IFRS operating profit and IFRS operating profit includes, in addition to the revenue adjustments of significantly less than €0.01 billion (Q1 2019: €0.03 billion), adjustments for acquisition-related charges of €0.16 billion (Q1 2019: €0.17 billion), adjustments for share-based payment expenses of €0.09 billion (Q1 2019: €0.52 billion) and adjustments for restructuring expenses of €0.02 billion (Q1 2019: €0.89 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 https://www.sap.com/docs/download/investors/2018/sap-non-ifrs-measures.pdf

Ambition 2023

SAP confirms its 2023 ambition which was previously published in its 2019 Integrated Report.
 

The Company remains in its quiet period until reporting its complete first quarter 2020 results on April 21^st when it will provide further details on its first quarter and projected full-year 2020 performance.

Additional Information

This press release and all information therein is preliminary and unaudited.

The 2019 comparative numbers for first quarter only include Qualtrics revenues and profits from acquisition date of January 23rd.

First Quarter 2020 Quarterly Statement

SAP's first quarter 2020 quarterly statement will be published on April 21, 2020 and will be available for download at www.sap.com/investor.

Webcast

SAP senior management will host a financial analyst conference call on Tuesday, April 21st at 2:00 PM (CET) / 1:00 PM (GMT) / 8:00 AM (Eastern) / 5:00 AM (Pacific). The call 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

As the Experience Company powered by the Intelligent Enterprise, SAP is the market leader in enterprise application software, helping companies of all sizes and in all industries run at their best: 77% of the world's transaction revenue touches an SAP(R) 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 more than 440,000 business and public customers 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.

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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.
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