Earnings Call Excerpt
SAP (SAP)
Q4 2005 Earnings Conference Call
January 25th 2006, 4:00 AM.
Executives:
Stefan Gruber, Director Investor Relations
Werner Brandt, Chief Financial Officer
Leo Apotheker, President of Customer Solutions & Operations
Henning Kagermann, Chief Executive Officer
Analysts:
Mr. Bruder, Analyst
Michael Schacht, Cheuvreux
Bill Tusson, BHS
Ariel Bauer, ABN Amro
Koeller Mueller, Sal Oppenheim
Raimo Lenschow, Merrill Lynch
Simon Andrews, Jefferies
Knot Woller, HVB
Presentation
Stefan Gruber, Director, Investor Relations
Hello everyone and welcome to this SAP’s fourth quarter earnings meeting here in Frankfurt. My name is Stefan Gruber, I'm Head of Investor Relations with SAP. I’d like to quickly walk you through the agenda for this afternoon. We follow almost the standard procedure for these events. First of all Werner Brandt, the CFO of SAP, will walk through the preliminary numbers for 2005.
Next Leo Apotheker, President of Customer Solutions and Operations, will provide you with an update on our regional performance and then Henning Kagermann, CEO of SAP, will speak on SAP’s performance from a strategic perspective. And especially how SAP sets the foundation to prepare itself for a much larger, addressable market in the future.
I have also technical comment. As you know, this conference is being webcast on the SAP Investor Relations web page. That’s important later on for the Q&A, so make sure you use one of the microphones. And for those of you who are not in Frankfurt today, you can send us questions email. The email address is investor@sap.com, and we try to take as many questions as possible from the web.
And finally, the Safe Harbor statement. Please note that except for certain information, matters discussed in today’s conference may contain forward-looking statement which are subject to various risk 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 most recent filings with the Securities and Exchange Commission.
And with that I hand things over to Werner Brandt. Thank you.
Werner Brandt, Chief Financial Officer
Good afternoon and, Stefan thank you very much, especially for the Safe Harbor statement, so I can skip this right away. Five topics: a brief overview on our key figures, then some words on the margin and expense side of the business, balance sheet, cash flow is next, headcount and finally our outlook for 2006.
Key metrics. First of all software revenue growth. 18% for the full year. Currency adjusted 15%. And if you looked at it from a fourth quarter perspective, also in the fourth quarter we reported 18% on an actual basis and currency adjusted growth of 12%. If you look to the underlining number of deals, then you see we increase the number of deals by 22%, to more than 8,800 in 2005. Thereof roughly 3,500 were closed in Q4.
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