14
ONE Service Approach: Impact on Financial Reporting Dr. Christoph Hütten, Chief Accounting Officer January 20, 2015
ONE Service Approach:
Impact on Financial Reporting
Dr. Christoph Hütten, Chief Accounting Officer
January 20, 2015
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 2
SAP’s Product and Service Portfolio Overview
Software
Licenses
Cloud
Subscriptions
Support
Services
Professional
Services
& Other Services
Subscriptions for our cloud solutions
Transaction fees for the Ariba, Fieldglass and
Concur networks
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 3
SAPʼs Product and Service Portfolio Overview
Software
Licenses
Cloud
Subscriptions
Support
Services
Professional
Services
& Other Services
License fees for our software products
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 4
SAPʼs Product and Service Portfolio Overview
Software
Licenses
Cloud
Subscriptions
Support
Services
Professional
Services
& Other Services
Standardised Support Offerings
for software licenses and/or cloud
Premium Support Offerings
for software licenses and/or cloud
Updates and enhancements for the respective
software or cloud solutions
Reactive and proactive support services
Examples:
SAP Enterprise Support
SAP Standard Support
Basic Cloud Support (embedded in cloud
subscription)
SuccessFactors Platinum Support
High-end support services tailored to customer
requirements
Examples:
SAP MaxAttention
SAP ActiveEmbedded
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 5
SAPʼs Product and Service Portfolio Overview
Software
Licenses
Cloud
Subscriptions
Support
Services
Professional
Services
& Other Services
Consulting services
Education services
Messaging services
…
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 6
SAPʼs Product and Service Portfolio
in SAPʼs Current Income Statement
Software
Licenses
Cloud
Subscriptions
Support
Services
Professional
Services
& Other Services
Standardised Support Offerings
for software licenses and/or cloud
Premium Support Offerings
for software licenses and/or cloud
Cloud subscriptions and support
Software
Support
Software and support
Software and software-related service revenue
Professional services and other service revenue
Total revenue
Income Statement
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 7
ONE Service
Software
Licenses
Cloud
Subscriptions
Support
Services
Professional
Services
& Other Services
Standardised Support Offerings
for software licenses and/or cloud
Premium Support Offerings
for software licenses and/or cloud
ONE Service Approach
Aim
Simplify the customer experience with Service
& Support
Enable customers to innovate faster with SAP and
reduce complexity
Ensure all customers are successful with their
SAP solutions
Approach
Offer different services in one service portfolio, out
of one global organisation, under one contract
Global integrated delivery model for all post sales
services
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 8
Impact of ONE Service on Our Income Statement
Software
Licenses
Cloud
Subscriptions
Support
Services
Professional
Services
& Other Services
Standardised Support Offerings
for software licenses and/or cloud
Premium Support Offerings
for software licenses and/or cloud
Combine services
into ONE ServiceCombine revenues
into one line item
Income Statement
Cloud subscriptions and support
Software
Support
Software and support
Software and software-related service revenue
Professional services and other service revenue
Total revenue
Services
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 9
Income Statement Amendment:
Summary
Cloud subscriptions and support
Software
Support
Software and support
Software and software-related service revenue
Professional services and other service revenue
Total revenue
content & name change
Cloud subscriptions and support
Software licenses
Software support
Software licenses and support
Cloud & Software
Services
Total revenue
pure name change
amount & name change
amount & name change
content & name change
The only substantive change is the merger of the revenues from premium support services, professional services and other
services into one new Services line
Subtotal amounts change as a result of this change
All other changes are name changes only intended to better describe the content of the line items
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 10
Income Statement Amendment:
Timing and Retrospective Application
The changes will be implemented starting Q1/2015
The changes will be applied retrospectivly (i.e. prior period numbers will be adjusted and made available on
SAPʼs website)
The 2015 guidance will be based on this amended structure
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 11
Impact on the FY 2013 numbers – IFRS
Cloud subscriptions and support € 696
Software € 4,516
Support € 8,738
Software and support € 13,254
Software and software-related service revenue € 13,950
Prof. services and other service revenue € 2,865
Total revenue € 16,815
€445
€8,293
Total revenue
Software licenses
Software support
Software licenses and support
Services
Cloud & Software
Cloud subscriptions and support € 696
€ 8,293
€ 4,516
€ 3,310
€ 13,505
€ 12,809
€ 16,815
All amounts in € million.
Due to rounding, numbers may not add up precisely.
SAP will amend the structure of its income statement, starting with Q1 2015
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 12
Impact on the FY 2013 numbers – Non-IFRS
Cloud subscriptions and support € 757
Software € 4,518
Support € 8,756
Software and support € 13,275
Software and software-related service revenue € 14,032
Prof. services and other service revenue € 2,865
Total revenue € 16,897
€445
€8,312
Total revenue
Software licenses
Software support
Software licenses and support
Services
Cloud & Software
Cloud subscriptions and support € 757
€ 8,312
€ 4,518
€ 3,310
€ 13,587
€ 12,830
€ 16,897
All amounts in € million.
Due to rounding, numbers may not add up precisely.
SAP will amend the structure of its income statement, starting with Q1 2015
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 13
Impact on the FY 2014 numbers – IFRS
Cloud subscriptions and support € 1,087
Software € 4,399
Support € 9,368
Software and support € 13,767
Software and software-related service revenue € 14,855
Prof. services and other service revenue € 2,706
Total revenue € 17,560
€539
€8,829
Total revenue
Software licenses
Software support
Software licenses and support
Services
Cloud & Software
Cloud subscriptions and support € 1,087
€ 8,829
€ 4,399
€ 3,245
€ 14,315
€ 13,228
€ 17,560
All amounts in € million.
Due to rounding, numbers may not add up precisely.
SAP will amend the structure of its income statement, starting with Q1 2015
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 14
Impact on the FY 2014 numbers – Non-IFRS
Cloud subscriptions and support € 1.101
Software € 4,399
Support € 9,373
Software and support € 13,773
Software and software-related service revenue € 14,874
Prof. services and other service revenue € 2,706
Total revenue € 17,580
€539
€8,834
Total revenue
Software licenses
Software support
Software licenses and support
Services
Cloud & Software
Cloud subscriptions and support € 1.101
€ 8,834
€ 4,399
€ 3,245
€ 14,334
€ 13,233
€ 17,580
All amounts in € million.
Due to rounding, numbers may not add up precisely.
SAP will amend the structure of its income statement, starting with Q1 2015
