Management Report


Overall Financial Position
Executive Board’s Assessment

SAP performed exceptionally well in 2011, clearly exceeding its guidance for revenue and profit. This record performance was driven by strong top line results with double-digit software revenue growth in all regions, resulting in year over year total revenue growth of €1.8 billion and a record cash flow. We are well positioned to exceed our €20 billion revenue target and reach a 35% operating margin in 2015. Our financial position remains healthy. 

In an uncertain environment, we had the best year in our 40-year history, and we estimate that we well outperformed the competition. We extended our leadership in applications, analyticsanalyticsData analysis typically generated in the form of reports and charts which can be used for business insight and decision making., and mobile, and are reinventing the cloud and database and technology markets. We have significant momentum going into 2012, as our customers continue to benefit from faster innovation, easier adoption and our unmatched industry expertise. 

In 2011, we advanced our strategy of extending the functional reach of our portfolio by making targeted acquisitions. We have a sound financial footing, allowing us flexibility of action even in times of crisis. 

Influence of Accounting Policies on our Financial Position

For details of our accounting policies, see the Notes to the Consolidated Financial Statements section, Note (3)

There are no off-balance sheet financial instruments, such as sale-and-lease-back transactions, asset-backed securities, and liabilities related to special-purpose entities, that are not disclosed in our Consolidated Financial Statements. Any factoring contracts are not material in volume.