Friday, October 21, 2016

Quarterly figures from SAP: “growth machine” – Handelsblatt

stock market reports: SAP top, Daimler flop report season Gas

WalldorfSAP, CEO Bill McDermott tells it, a “growth company”, despite the size. On Friday the Americans presented new evidence to support this Story: The largest German software group generated in the third quarter more sales than analysts expected, mainly thanks to the business with Cloud Computing. And given the strong order situation, he raises the forecast for sales and profit in the current fiscal year slightly.

“We are growing in every Region of the world, our growth machine is running at full speed,” McDermott repeated a Variation of his favorite record. shareholders declined him this story: SAP’s share price was on Friday morning, with a Plus of around three percent to almost their all-time high of 82,60 Euro and was the strongest value in the Dax.

from the beginning Of July until the end of September, SAP achieved a 5.4 billion euros in sales, 8 percent more than in the previous year. The realignment of the business made on the Cloud-Computing pay, the developed. What interferes with the growth story, however, is something: Because of the high cost of share options operating profit drops by 9 percent to 1.1 billion euros. The profit after tax fell by almost 20 percent to 725 million euros.

Large SAP-Acquisitions

  • in 2007, the German take on the French software maker Business Objects for 4.8 billion euros. SAP buys to analysis Software, which analyzes the data from individual business areas of the company – and the market is now the leader.

  • The database specialist Sybase, SAP takes over in 2010 for $ 5.8 billion, and to acquire Expertise for the mobile market. With the help of the Sybase platform, SAP programs to be easier on Smartphones and Tablets play. The Software of Sybase also provides the Foundation for the growing database of business from SAP.

  • With the trading platform Ariba, which SAP also acquired in 2012 for $ 4.3 billion, secured by the software group for more skills. Ariba is not only a sort of Ebay for companies. The company also sells Software for example, programs that help companies to their suppliers of digital invoices.

  • 2012 is the SAP Acquisition of Successfactors for 3.4 billion dollars. Software that is stored on company servers, but according to need “on Demand” via the Internet is retrieved, is already a billion-dollar market

  • In September 2014, SAP buys the company Concur, to its growing Cloud business to expand. Concur is a US provider of commercial software for travel management and travel expense processing. The price of the equivalent of around 6.5 billion Euro: It is the most expensive Acquisition in the history of SAPs.

McDermott and his management team to align the SAP to a new paradigm in the IT world: more and more companies do not install the Software locally, but take advantage of computing power, storage or applications over the network so the data cloud. The market research firm Gartner expects that, due to this change, the global Cloud market this year will grow by 16.5 percent to 204 billion dollars, and by 2017 strong gains.

In the past years, the group has not had to contend several billion in acquisitions, in order not to miss the Trend. The power of now paid for The business with the Cloud Computing grew by 28 percent to 769 million euros and now accounts for 14 percent of sales. Orders for a further € 265 million have already been completed, but not yet recorded in SAP summarizes this value as the indicator of “New Cloud Bookings”. To Cloud-based services include, for example, the personnel management of Success Factors or the business networks, Ariba and Concur systems for travel booking and procurement.

Bill McDermott

The SAP boss is pushing ahead with the restructuring of the group with Acquisitions.

(photo: Reuters)

But the growth story doesn’t work without a familiar item: The business with software licenses and support, to become the SAP of a world group, with 3.7 billion euros, still the majority of sales, even if it is growing, with a Plus of five per cent is also comparatively slow.

The new program package S4/Hana may bring to SAP in the future, stable revenues: 400 companies signed in the third quarter of the contracts, of which 40 percent were new customers. This is in comparison to the previous quarters a slight slowdown, said Massimo Pezzini from the market researchers at Gartner, the Handelsblatt. But the total number of 4100 customers, so shortly after the introduction of “not a bad result”, especially since the development of the Software was not yet complete. With the program package, organizations can control their entire operations, from production to financial accounting. to be able to

new products develop, market and sell a SAP. In the third quarter of 2500 employees joined the group, which now employs more than 82,000 people. “We have set a strong focus on the innovation machine,” said chief financial officer Luka Mucic. In the past year, SAP had established a severance program for 3000 Employees, especially in departments for classic Software.

Luka Mucic

The chief financial officer wants to generate by 2020, almost 30 percent of sales with Cloud services.

(photo: Reuters)

The growth was at the expense of Profit: The operating profit fell in the third quarter by 9 percent to 1.1 billion euros. On the one hand, this is due to the strong development of the share of SAP in addition to 300 million euros for compensation programs must take into account – the course was risen in the third quarter to more than 75 euros to 15 euros higher than in the prior-year period. On the other hand, the group invested heavily, alone, 50 million euros in innovation projects with strategic customers. Added to this is an accounting effect: in The year-earlier quarter was unusually strong.

The development of the course perfectly linear, adding McDermott to the fall – “but we are on course”. The show is the increase in the forecast. SAP is internal anyway, after a private measure, which is grown by a percentage.

in view of the good order situation, the SAP raises the forecast for the current year. The operating result is expected to lie in a range between 6.5 and 6.7 billion euros and thus at the upper end of the forecast. Revenue from Cloud – and software business, is now expected to rise by 6.5 to 8.5 percent, scheduled a half percentage point more than in the past. This value is adjusted to currency effects and exceptional costs, as the SAP does in its internal objectives. “All the key indicators for the business Outlook tend to the upper end of the respective bandwidth from the beginning of the year,” said chief financial officer Luka Mucic.


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