<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the periods ended December 31, 1999
SAP AKTIENGESELLSCHAFT
SYSTEME, ANWENDUNGEN, PRODUKTE IN DER DATENVERARBEITUNG
(Exact name of registrant as specified in its charter)
SAP CORPORATION
SYSTEMS, APPLICATIONS AND PRODUCTS IN DATA PROCESSING
(Translation of registrant's name into English)
Neurottstrasse 16
69190 Walldorf
Federal Republic of Germany
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [ ] No [X]
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-_______.
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SAP AKTIENGESELLSCHAFT
SYSTEME, ANWENDUNGEN, PRODUKTE IN DER DATENVERARBEITUNG
FORM 6-K
SAP Aktiengesellschaft Systeme, Anwendungen, Produkte in der Datenverarbeitung,
a stock corporation organized under the laws of the Federal Republic of Germany
(the "Company"), issued a press release, dated January 24, 2000 (the "Press
Release"), announcing certain information for the periods ended December 31,
1999. The Press Release is attached as Exhibit 99.1 hereto and is incorporated
by reference herein.
Any statements contained in the Press Release 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," "anticipate," 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 1998 filed with the SEC on May 18, 1999. Readers
are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of their dates.
1
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EXHIBITS
<TABLE>
<CAPTION>
Exhibit No. Exhibit
- ----------- -------
<S> <C>
99.1 Press Release, dated January 24, 2000
</TABLE>
2
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SAP AKTIENGESELLSCHAFT SYSTEME,
ANWENDUNGEN, PRODUKTE IN DER
DATENVERARBEITUNG
(Registrant)
By: /s/ Henning Kagermann
__________________________________
Name: Prof. Dr. Henning Kagermann
Title: Co-Chairman and CEO
By: /s/ Dieter Matheis
__________________________________
Name: Dieter Matheis
Title: CFO
Date: January 26, 2000
3
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EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Exhibit
- ----------- -------
<S> <C>
99.1 Press Release, dated January 24, 2000
</TABLE>
4
<PAGE> 1
EXHIBIT 99.1
PRESS INFORMATION [SAP LOGO]
FOR IMMEDIATE RELEASE
Contact: Gundolf Moritz
SAP AG
011-49-6227-7-44872
-or-
James P. Prout
Taylor Rafferty Associates
212-889-4350
SAP ANNOUNCES 1999 PRELIMINARY RESULTS
Solid financial performance; mySAP.com established as key strategic e-business
initiative
WALLDORF, Germany - January 24, 2000 -- SAP AG (NYSE: SAP), the leading provider
of inter-enterprise software solutions, today announced solid results for 1999.
Sales grew 18% over 1998 to Euro 5.11 billion (1998: Euro 4.32 billion). Pre-tax
profit in 1999 before charges for the employee stock appreciation rights program
(STAR) was up 18% to Euro 1.12 billion (1998: Euro 948 million); pre-tax profit
including STAR grew 5% to Euro 981 million (1998: Euro 932 million). Net income
for the year increased 14% to Euro 602 million (1998: Euro 527 million). On the
basis of an increased number of shares issued (an average of 104.6 million in
1999 compared with an average of 104.4 million in 1998), earnings per share
excluding charges for the STAR program rose 28% to Euro 6.58 (1998: Euro 5.14);
earnings per share including STAR were up 14% to Euro 5.76 (1998: Euro 5.05).
EXCEPTIONALLY STRONG FOURTH QUARTER
SAP's 1999 results were driven by a strong fourth quarter in which sales rose
30% to Euro 1.65 billion over the same period in 1998 (Euro 1.27 billion).
Product revenues in the quarter were up 43% to Euro 1.13 billion (1998: Euro 793
million) due mostly to an increase in license revenue of 45% to Euro 811 million
(1998: Euro 559 million). In the quarter, mySAP.com products contributed Euro
129 million to license sales, most of which was booked in the month of December.
In the future, SAP will disclose mySAP.com license sales. Consulting revenues
grew 12% to Euro 408 million (1998: Euro 364 million) and training revenues
decreased 14% to Euro 89 million (1998: Euro 104 million).
In the fourth quarter, revenues in the Europe, the Middle East and Africa (EMEA)
sales region increased 46% to Euro 785 million (1998: Euro 539 million), the
Americas region rose 12% to Euro 683 million (1998: Euro 609 million), and in
the Asia-Pacific region (APA) revenues were up 52% to Euro 167 million (1998:
Euro 110 million). Pre-tax profits excluding charges for the STAR program grew
121% to Euro 602 million (1998: Euro 271 million); including STAR, pre-tax
profit rose 79% to Euro 482 million (1998: Euro 270 million). Net income for the
quarter increased 109% to Euro 317 million (1998: Euro 152 million).
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SOLID FULL YEAR
For 1999, product sales increased 14% to Euro 3.09 billion (1998: Euro 2.72
billion). Of this total, license revenue rose 2% to Euro 1.93 billion (1998:
Euro 1.90 billion). Consulting revenues grew 38% to Euro 1.55 billion (1998:
Euro 1.12 billion) and training revenue decreased 4% to Euro 395 million (1998:
Euro 412 million).
Breaking out geographic sales for the year: the EMEA region rose 28% to
Euro 2.46 billion (1998: Euro 1.92 billion), the Americas region increased 7% to
Euro 2.14 billion (1998: Euro 2.00 billion), and the APA region increased 27% to
Euro 506 million (1998: Euro 397 million). Costs rose 26% in 1999 to Euro 4.31
billion (1998: Euro 3.42 billion); pre-tax margin excluding STAR was 22% and
after STAR 19%. A lower than expected overall tax rate of 38.5% is anticipated,
as opposed to 43.2% in 1998.
Hasso Plattner, Co-Chairman and CEO of SAP AG commented, "In 1999, SAP delivered
a comprehensive redesign of its product line, completed the transition to the
internet and achieved a strong rebound in sales - all exceptional achievements
in a challenging year."
"Our powerful results in the fourth quarter and a healthy pipeline give us an
excellent platform to continue SAP's product sales growth into 2000," said
Henning Kagermann, Co-Chairman and CEO of SAP AG, "For 2000, we are anticipating
that product revenues will grow faster than service revenues leading to an
improved operating margin, before the impact of costs associated with the STAR
program."
In the first part of 2000, SAP expects that service revenue growth will probably
be slower than seen in the past. The company also anticipates additional
personnel and marketing costs associated with mySAP.com efforts, making it
likely that cost growth before STAR in the first quarter will be a few
percentage points higher than revenue growth.
The company confirmed its expectation that revenues for 2001 will be
approximately twice those achieved in 1998.
LAUNCH OF MYSAP.COM
Successfully building on its newly designed internet software solutions that
make SAP products easier to learn, tailor and use, SAP delivered mySAP.com in
September. mySAP.com provides an open, collaborative e-business environment of
personalized solutions on demand. This enables companies of all sizes and
industries to fully engage their employees, customers and partners to capitalize
upon the new Internet economy.
"By leveraging our deep customer relationships, we're going to make mySAP.com a
central place for companies to work and collaborate in an open electronic
environment," commented Kevin McKay, CEO of SAP America, "This is a natural
extension of our ability to deliver better business solutions. When businesses
look to harness the efficiencies and business opportunities offered by the
internet, SAP will remain the first choice."
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NEW EMPLOYEES AND STOCK OPTION PROGRAM
In 1999, SAP continued to build out its infrastructure by adding new personnel.
At the end of 1999, global headcount totaled 21,699, an increase of 12% over the
end of 1998. The most additions were made to service and support, whose staff
increased 14% to 10,957.
As proposed in December, SAP shareholders approved the introduction of a stock
option and convertible bond program named the SAP 2000 Long Term Incentive Plan
(LTI Plan). The LTI plan will attract, retain and motivate senior managers and
top performers to grow the value of the enterprise and to secure their
commitment to the company. The new plan will augment the existing stock-based
compensation package (STAR). In accordance with US GAAP, costs associated with
the 1999 STAR program are estimated to be over Euro 300 million in the year 2000
based upon a recent SAP stock price of Euro 700, with approximately Euro 150
million of these costs to be reflected in the first quarter.
1999 HIGHLIGHTS
AFTER ANNOUNCING ITS INTERNET STRATEGY IN MAY, SAP DELIVERED MYSAP.COM
ON-SCHEDULE IN SEPTEMBER: mySAP.com provides an open collaborative e-business
solutions environment of personalized solutions on demand. mySAP.com is
comprised of the following four elements:
o The mySAP.com Marketplace, a business-community portal serving as the
central hub that enables bilateral and multilateral collaboration between
and among enterprises. The mySAP.com Marketplace opened its doors to
business in October 1999. There are now more than 46,000 registered
Marketplace users. More than 3,200 companies representing over 19
industries have registered with the mySAP.com Marketplace. In December, SAP
announced a global vertical Marketplace for chemical and pharmaceutical
companies which will go live second quarter of 2000. In December,
Neoforma.com, a healthcare industry e-commerce provider, licensed the
mySAP.com marketplace to create a marketplace for the healthcare industry.
Statoil, the world's second largest supplier of crude oil, and SAP
announced in January to co-develop the first open global online marketplace
for the oil and gas industry.
o The mySAP.com Workplace, a business-oriented desktop portal customized for
each user in a company. The Workplace provides employees with single-screen
access to all the functions and data they need to do their job.
o The mySAP.com e-business solutions: collaborative, role-based solutions for
business intelligence, supply chain management, e-commerce, and customer
relationship management that are fully integrated between enterprises and
between providers and end consumers.
o Application Hosting with mySAP.com, access to applications via networks,
enabling cost-effective access to mySAP.com solutions within a very short
timeframe. Over 8,000 users in North America have embraced Application
Hosting with mySAP.com since the initiative was introduced in January 1999.
Customers using Application Hosting with mySAP.com include REZsolutions
Inc., Hirsh Industries and Visioneer.
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KEY E-BUSINESS SOLUTIONS GAIN MOMENTUM; AVAILABLE THROUGH MYSAP.COM:
o More than 1,100 installations to date for Business Intelligence with
mySAP.com: The SAP Business Information Warehouse (SAP BW) is the
analytical SAP software solution that supports management decision-making
processes. Customers that use SAP BW include Clariant and Kimberly-Clark
Corporation.
o More than 350 installations for Supply Chain Management with mySAP.com: The
SAP Advanced Planner and Optimizer (SAP APO) solution enables collaborative
network optimization across the extended supply chain. Among the customers
that have opted for the SAP APO solution are Goodyear and Lufthansa.
o More than 400 installations for Customer Relationship Management with
mySAP.com: CRM with mySAP.com enables customer value management through
personalized interactions and collaborative e-business. Companies that are
gaining an integrative view of their customers through mySAP.com CRM
scenarios include Bertelsmann AG and Dow Corning.
o Nearly 400 installations for e-commerce with mySAP.com: The mySAP.com
e-commerce solutions support one-step business where real-time multiparty
transactions can take place with a single click directly or via the
mySAP.com Marketplace. Customers that have opted for SAP B2B Procurement,
the mySAP.com buying solution to manage their Internet purchasing
transactions include Visteon and Volvo.
HUGE NUMBER OF ATTENDEES AT INTERNATIONAL USER CONFERENCES: SAP again attracted
large numbers of customers, prospects and partners to its international SAPPHIRE
events, with over 11,000 people attending SAPPHIRE in Nice and Singapore and
over 18,000 people attending both SAPPHIRE'99, the annual SAP Americas customer
conference, and SAP TechEd'99, a conference for software developers that was
held the previous week. Users' overwhelming response demonstrates the
exceptionally high levels of acceptance of SAP products and further illustrates
the long-term relationships SAP enjoys with its customers.
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1999 PRELIMINARY RESULTS
<TABLE>
<CAPTION>
1999 1998 % Change
------ ------ --------
<S> <C> <C> <C>
Revenues (Euro mill.) 5,110 4,316 18
Income before taxes (Euro mill.) 981 932 5
Net profit (Euro mill.) 602 527 14
Earnings per share (Euro) 5.76 5.05 14
Headcount as of Dec. 31 21,699 19,308 12
- in Germany 8,912 7,679 16
</TABLE>
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 1998 filed with the SEC on May 18, 1999. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of their dates
SAP AG preference and common 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-twelfth of a preference 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 AG preference shares is available on Bloomberg under the
symbol SAP3 GR, on Reuters under SAPG_p.F or DE and on Quotron under SAGVD.EU.
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: http://www.sap.com.
# # #
(Tables to follow)
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1999 REVENUES BY QUARTER (IN EURO MILLIONS)
<TABLE>
<CAPTION>
Q1 1999 Q2 1999 Q3 1999 Q4 1999 1999
------- ------- ------- ------- -----
<S> <C> <C> <C> <C> <C>
TOTAL REVENUES 1,076 1,260 1,123 1,651 5,110
Product revenues 615 736 611 1,132 3,094
Consulting revenues 343 398 398 408 1,547
Training revenues 110 106 90 89 395
Other revenues 8 20 24 22 74
PRETAX PROFIT 172 248 79 482 981
</TABLE>
FOURTH QUARTER REVENUES COMPARISON 1999 / 1998 (IN EURO MILLIONS)
<TABLE>
<CAPTION>
Q4 1999 Q4 1998 Change % Change
------- ------- ------- --------
<S> <C> <C> <C> <C>
TOTAL REVENUES 1,651 1,273 378 30
Product revenues 1,132 793 339 43
Consulting revenues 408 364 44 12
Training revenues 89 104 -15 -14
Other revenues 22 12 10 83
PRETAX PROFIT 482 270 212 79
</TABLE>
EMPLOYEES WORLDWIDE AT YEAR END
<TABLE>
<CAPTION>
December 31, 1999 December 31, 1998 % Change
----------------- ----------------- --------
<S> <C> <C> <C>
GROUP 21,699 19,308 12
EMEA 13,074 10,960 19
- Germany 8,912 7,580 18
Americas 6,005 5,984 0
APA 2,620 2,364 11
RESEARCH & DEVELOPMENT 5,403 4,818 12
SERVICE & SUPPORT 10,957 9,570 14
SALES/MARKETING 3,809 3,503 9
</TABLE>
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SAP AG
PRELIMINARY INCOME STATEMENT - YEAR
(IN EURO MILLIONS)
<TABLE>
<CAPTION>
1999 1998 DELTA
------ ------ -----
<S> <C> <C> <C>
Product revenue 3,094 2,720 14%
Consulting revenue 1,547 1,122 38%
Training revenue 395 412 -4%
Service revenue 1,942 1,534 27%
Other revenue 74 62 19%
------ ------ -----
TOTAL REVENUE 5,110 4,316 18%
------ ------ -----
Cost of product -527 -369 43%
Cost of service -1,622 -1,256 29%
Research and development -747 -573 30%
Sales and marketing -1,133 -965 17%
General and administration -259 -208 25%
Other income/expenses, net -25 -44 -43%
------ ------ -----
TOTAL OPERATING EXPENSE -4,313 -3,415 26%
------ ------ -----
OPERATING INCOME 797 901 -12%
------ ------ -----
Other non-operating income/
expenses, net -51 17 -400%
Financial income, net 235 14 1579%
------ ------ -----
INCOME BEFORE INCOME TAXES 981 932 5%
------ ------ -----
Income taxes -378 -403 -6%
Minority interest -1 -2 -50%
------ ------ -----
NET INCOME 602 527 14%
------ ------ -----
DSO (IN DAYS) 103 104
------ ------
</TABLE>
FIGURES ARE REPORTED ACCORDING TO US-GAAP.
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SAP AG
PRELIMINARY INCOME STATEMENT - FOURTH QUARTER
(IN EURO MILLIONS)
<TABLE>
<CAPTION>
1999 1998 DELTA
------ ------ -----
<S> <C> <C> <C>
Product revenue 1,132 793 43%
Consulting revenue 408 364 12%
Training revenue 89 104 -14%
Service revenue 497 468 6%
Other revenue 22 12 83%
------ ------ -----
TOTAL REVENUE 1,651 1,273 30%
------ ------ -----
Cost of product -221 -124 78%
Cost of service -415 -376 10%
Research and development -266 -170 56%
Sales and marketing -343 -251 37%
General and administration -91 -54 69%
Other income/expenses, net 3 -25 -112%
------ ------ -----
TOTAL OPERATING EXPENSE -1,333 -1,000 33%
------ ------ -----
OPERATING INCOME 318 273 16%
------ ------ -----
Other non-operating income/
expenses, net -32 -6 433%
Financial income, net 196 3 6433%
------ ------ -----
INCOME BEFORE INCOME TAXES 482 270 79%
------ ------ -----
Income taxes -166 -116 43%
Minority interest 1 -2 -150%
------ ------ -----
NET INCOME 317 152 109%
------ ------ -----
DSO (IN DAYS) 103 104
------ ------
</TABLE>
FIGURES ARE REPORTED ACCORDING TO US-GAAP.
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SAP GROUP
PRELIMINARY CONSOLIDATED BALANCE SHEET
(IN EURO MILLIONS)
ASSETS
<TABLE>
<CAPTION>
12/31/1999 12/31/1998
---------- ----------
<S> <C> <C>
INTANGIBLE ASSETS 120 75
PROPERTY, PLANT AND EQUIPMENT 794 645
FINANCIAL ASSETS 609 184
----- -----
FIXED ASSETS 1,523 904
INVENTORIES/ACCOUNTS RECEIVABLE AND OTHER ASSETS 2,102 1,676
LIQUID ASSETS 810 670
----- -----
CURRENT ASSETS 2,912 2,346
DEFERRED TAXES 317 182
PREPAID EXPENSES AND DEFERRED CHARGES 57 21
----- -----
TOTAL ASSETS 4,809 3,453
===== =====
</TABLE>
SHAREHOLDERS' EQUITY AND LIABILITIES
<TABLE>
<CAPTION>
12/31/1999 12/31/1998
---------- ----------
<S> <C> <C>
SHAREHOLDERS' EQUITY 2,559 1,818
MINORITY INTEREST 9 7
RESERVES AND ACCRUED LIABILITIES 1,265 721
OTHER LIABILITIES 666 600
DEFERRED INCOME 310 307
----- -----
TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES 4,809 3,453
===== =====
</TABLE>
FIGURES ARE REPORTED ACCORDING TO US-GAAP.
