SAP 2001 Revenues Total € 7.3 Billion; Record Fourth Quarter Sales

Number One in Supply Chain Management; Number Two in CRM

WalldorfSAP AG (NYSE: SAP), the world’s leading provider of e-business software solutions today announced its preliminary financial results for the fourth quarter and year ended December 31, 2001. For the year, sales increased 17% over 2000 to € 7.34 billion (2000: € 6.27 billion).

  • License sales up 5% in FY 2001

  • Operating margins, excluding stock-based compensation and TopTier
    acquisition-related charges, stable at 20%

  • Leader in open, integrated software solutions

Fourth Quarter Results
In the fourth quarter of 2001, revenues rose 7% over the same period last year to € 2.32 billion (2000: € 2.16 billion). Fourth quarter 2001 operating income, before charges for stock-based compensation programs (STAR and LTI) and TopTier acquisition-related charges, declined 8% to € 613 million (2000: € 668 million). Operating margin, excluding stock based compensation and TopTier acquisition-related charges, was 26% (2000: 31%). Net income for the fourth quarter 2001, adjusted for the TopTier acquisition costs and the Commerce One impact, was € 379 million (2000: € 375 million) and earnings per share was € 1.21 (2000: € 1.19).

“SAP is alone in providing companies and organizations with a comprehensive approach to business efficiency,” said Hasso Plattner, Co-Chairman and CEO of SAP AG. “We continue to strengthen our offerings in CRM, SCM, ERP, and Marketplaces/Portals, spending on technology that unifies existing software investment and for optimum return.”

In the quarter, revenues in the Europe, Middle East and Africa (EMEA) region increased 6% to € 1.2 billion (2000: € 1.14 billion) and in the Asia-Pacific region (APA) revenues were up 8% to € 248 million (2000: € 230 million). Revenues in the Americas region rose 8% to € 864 million (2000: € 797 million); however, at constant currency rates, revenues in the Americas would have risen 13%.

“Our organization executed well in the fourth quarter, particularly given the very tough business environment. Europe was solid as anticipated, and the US exceeded our expectations and continued to gain market share,” said Henning Kagermann, Co-Chairman and CEO of SAP AG. “Our focus now is squarely on the customer, and we are initiating a stream of new products and services as well as enhanced solutions to create an irresistible software offering.”

Product revenues in the fourth quarter rose 5% to € 1.6 billion (2000: € 1.52 billion). License revenues were down 2% to € 1.03 billion (2000: € 1.06 billion). Consulting and training revenues rose 11% to € 572 million (2000: € 516 million) and 5% to € 117 million (2000: € 111 million), respectively.

The Company continued to take market share in sales of specific software solutions. In the fourth quarter of 2001, software revenues related to mySAP CRM (Customer Relationship Management) reached approximately € 196 million, representing 19% of total software license sales (€ 1.03 billion). Fourth quarter mySAP SCM (Supply Chain Management) related software revenues totaled around € 232 million, representing 23% of total software license sales. These figures include revenues from designated solution contracts, as well as figures from integrated solution contracts, which are allocated based on usage surveys.

Full Year Results
For 2001, sales increased 17% over 2000 to € 7.34 billion (2000: € 6.27 billion). Operating income, before charges for stock-based compensation and TopTier acquisition-related charges, was up 18% to € 1.47 billion (2000: € 1.24 billion). License revenues for 2001 rose 5% to € 2.58 billion (2000: € 2.46 billion). Consulting revenues grew 27% to € 2.08 billion (2000: € 1.65 billion) and training revenue increased 16% to € 466 million (2000: € 401 million).

In 2001, sales in the APA region were up 9% to € 841 million (2000: € 769 million), in the EMEA region, revenues increased 23% to € 3.8 billion (2000: € 3.09 billion) and in the Americas, revenues rose 12% to € 2.7 billion (2000: € 2.41 billion).

Over the year, software revenues related to mySAP CRM (Customer Relationship Management) reached approximately € 445 million, representing 17% of total software license sales (€ 2.58 billion). Full year mySAP SCM (Supply Chain Management) related license revenues totaled around € 583 million, representing 23% of total software license sales. These figures include revenues from designated solution contracts, as well as figures from integrated solution contracts, which are allocated based on usage surveys. With these results the Company established itself as number one in the market for SCM software and a fast growing number two in CRM software.

SAP expects 2002 to be another challenging year, as software sales trends continue to be unsettled in a tough economic environment. For the full year, SAP anticipates revenue to grow by around 15%, with stronger software license sales coming in the second half, in line with past quarterly developments. For the whole of 2002, SAP also expects its operating margin, excluding stock-based compensation and TopTier acquisition-related charges to improve, at least one percentage point over the 20.0% achieved in 2001. SAP anticipates that the improvement will become more evident in the second half as software license performance improves and the Group benefits from ongoing cost curtailment measures.

2001 Highlights

  • SAP extends its position as the world’s leading provider of e-business
    software solutions.
    Key contracts in the fourth quarter include Air
    Products, Graybar Electric, Nike, Petrobras and PricewaterhouseCoopers in the
    Americas; in EMEA Danone, Deutsche Post, EDF-GDF, Hoffmann La Roche and
    Unilever; and in APA CLP Power HongKong, Mitsubishi Heavy Industries, Samsung,
    and Yamaha, among others.

  • SAP announced mySAP Technology for open integration at TechEd 2001 in Los
    mySAP Technology consists of three elements: Web Application
    Server, exchange infrastructure, and portal infrastructure. This technology
    reduces the customer’s cost of ownership and increases flexibility by allowing
    collaboration across business processes and among users — even beyond company
    boundaries – on one reliable Web infrastructure.

  • SAP created a new company, SAP Portals, dedicated to developing and
    marketing comprehensive, open-enterprise portal and business intelligence
    products. SAP Portals combines SAP’s existing efforts in enterprise portals with
    the technology of TopTier Software, a leading provider of enterprise information
    portal software, which was acquired by SAP in April.

  • SAP concluded additional investment in Commerce One in August. SAP
    and Commerce One remain strategic partners and are closely engaged with
    development, sales, and support for MarketSet, the platform for marketplaces.
    The relationship continues to grow and strengthen especially as it relates to
    mySAP Technology and in particular regarding exchange-based business-to-business
    integration among business partners. SAP currently owns around 20% of Commerce

  • SAP began shipping the newest version of mySAP Customer Relationship
    Management (CRM) to customers worldwide in August.
    Among other solution
    highlights, SAP delivered mySAP CRM with unparalleled breadth and depth of
    functionality. mySAP CRM serves as a platform to openly integrate with either
    SAP or non-SAP business applications such as supply chain management, product
    lifecycle management, and human lifecycle management, providing flexibility that
    meets each business’ unique needs.

  • SAP converted its preference shares into ordinary shares moving to a
    one-share, one-vote standard. This provides the Company with greater flexibility
    and brings SAP more in-line with international corporate governance

  • SAP welcomed more than 20,000 attendees to its three SAPPHIRE customer
    conferences in Lisbon, Orlando, and Brisbane.
    In addition, over 21,000
    people followed these conferences on the Internet at http://www.sap.com/sapphire/.

Conference Call/Webcast/Supporting Slides
SAP senior management will
host a conference call today at 5:00 PM (CET) / 4:00 PM (GMT) / 11:00 AM
(Eastern) / 8:00 AM (Pacific). This call will be web cast live and will be available
for replay purposes.

Revenue by Region (in € millions)

 Revenue4Q 2001Revenue4Q 2000Change% Change
Total 2,3152,1631527
– at constant currency rates    10
– at constant currency rates    7
– at constant currency rates   19
– at constant currency rates   13

Key figures at a glance (in € millions) SAP Group

  4Q 2001 4Q 2000 Change % Change
Revenues 2,315 2,163 152 7
License revenues 1,030 1,056 -26 -2
Income before taxes 509 582 -73 -13
Net income 319 367 -48 -13
28,410 24,178 4,232 18

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 “believe,” “estimate,” “intend,” “may,”
“will,” “expect,” and “project” and similar expressions as they relate to the
Company are intended to identify such forward-looking statements. The Company
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 the Company’s future financial
results are discussed more fully in the Company’s filings with the U.S.
Securities and Exchange Commission (the “SEC”), including the Company’s Annual
Report on Form 20-F for 2000 filed with the SEC on March 28, 2001. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of their dates.

SAP AG ordinary shares are listed on the Frankfurt Stock Exchange as well as a number of other exchanges. In the US, SAP’s American Depositary Receipts (ADRs), each worth one-fourth of an ordinary share, trade on the New York Stock Exchange under the symbol SAP. SAP is a component of the DAX, the index of 30 German blue chip companies.

Information on the SAP common shares is available on Bloomberg under the symbol
SAP GR, on Reuters under SAPG.F and on Quotron under SAGR.EU. Additional
information is available on SAP AG’s home page:

See the Detailed Spreadsheet (XLS, 82 KB)

Download the Powerpoint
(PDF, 1.621 Kb)

View Financial Results