SAP Highlights Connections Between Financial and Non-Financial Performance Indicators; Reaches Its Next Milestone on the Journey to a More Sustainable Strategy
WALLDORF, Germany — SAP AG (NYSE: SAP) today announced its first integrated report, which brings together the information usually shared in an annual report with the information normally contained in a sustainability report. Combining these reports into a single online document allows SAP to highlight the connections between the company’s financial and non-financial performance. The integrated report is a milestone in the company’s journey from having a “sustainability strategy” to making its corporate strategy more sustainable.
The world is experiencing dramatic shifts in economy, technology, society and the environment. Organizations are struggling to fully understand the short and long-term business impact of those changes. To help its customers effectively do this, SAP has made a commitment to develop innovative technology solutions that help the world run better and improve people’s lives. In doing so, SAP helps companies take a more holistic approach to performance and customer success. SAP is working to reframe how it — and its customers — approach problems and create solutions that move beyond improving efficiency, and support transformational change.
As such, an integrated report both facilitates and reflects this new way of thinking about value creation. SAP assesses its performance through four company-wide objectives that balance financial and non-financial measures: revenue growth, margin expansion, customer satisfaction and employee engagement. Many of SAP’s non-financial performance indicators impact those objectives. The integrated approach to reporting allows the company to highlight the dependencies between financial and non-financial performance more easily.
One example of a holistic approach to value is the impact of a ride-sharing application that SAP developed to be used internally by employees. Within just one year, SAP employees in Germany generated more than 22,500 carpools, avoided more than 500,000 kilometers of driving, created an additional 1,400 days of networking and saved 47 tons of greenhouse gas emissions. SAP has estimated the value through cost savings in company fleet and travel, networking and emission reduction generated by the solution during the first year at EUR2.3 million.
“Our integrated approach shows that the business landscape has changed, and the information needed to evaluate performance must change with it,” said Werner Brandt, chief financial officer and member of the Executive Board of SAP AG. “Considering our past financial results and our financial outlook alone does not adequately capture our ability to respond to today’s challenges or demonstrate how we create value. Our future success depends on a holistic approach which helps us — and our customers — navigate the social, environmental and economic contexts in which we operate.”
“The lack of stability demonstrated by the financial crisis, allied to the need for more sustainable practices, has led to a crisis of confidence by investors of business,” said Paul Druckman, chief executive officer, International Integrated Reporting Council. “These events show we need a wider, more complete picture of corporate performance, rather than only the financials, focused on an organizations strategy, prospects, governance and value creation. SAP is one of the leading members of our Pilot Programme that has made substantial progress in their journey to drive truly integrated thinking in their decision-making process at the highest levels.”
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 232,000 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.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary. SAP, R/3, ABAP, BAPI, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, SAP HANA, the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, Sybase, Adaptive Server, Adaptive Server Enterprise, iAnywhere, Sybase 365, SQL Anywhere, Crossgate, B2B 360° and B2B 360° Services, m@gic EDDY, Ariba, Quadrem, b-process, Ariba Discovery, SuccessFactors, Execution is the Difference, BizX Mobile Touchbase, It’s time to love work again, SuccessFactors Jam and BadAss SaaS, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany or an SAP affiliate company. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.
Note to editors:
To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels. To view video stories on diverse topics, visit www.sap-tv.com. From this site, you can embed videos into your own Web pages, share video via email links, and subscribe to RSS feeds from SAP TV.
Follow SAP on Twitter at @sapnews.
For customers interested in learning more about SAP products:
Global Customer Center: +49 180 534-34-24
United States Only: 1 (800) 872-1SAP (1-800-872-1727)
For more information, press only:
Robin Meyerhoff, +1 (650) 440-2572, email@example.com, PDT
Daniel Reinhardt, +49 (6227) 7-40201, firstname.lastname@example.org, CET
Jim Dever, +1 (610) 661-2161 email@example.com, EDT
SAP Press Office, +49 (6227) 7-46315, CET; +1 (610) 661-3200, EDT; firstname.lastname@example.org