Slide 1: First Quarter 2024 Results
First Quarter 2024 Results Christian Klein, CEO Dominik Asam, CFO April 22, 2024 Public
Slide 2: Safe Harbor Statement
First Quarter 2024 Results Presentation | April 22, 2024 Safe Harbor Statement During this presentation we will make forward-looking statements which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions
Slide 3: Christian Klein, CEO
Chr CEO
Slide 4: We're off to a strong start in 2024
First Quarter 2024 Results Presentation | April 22, 2024 We’re off to a strong start in 2024 Current cloud Cloud revenue in € millions (yoy @cc) Cloud gross profit in € millions (yoy @cc) backlog € millions 14,179 ▲ +27% (+28% @cc) Cloud revenue € millions 3,928 2.849 ▲ +24% (+25% @cc) (+28%) 2.669
Slide 5: Dominik Asam, CFO
First Quarter 2024 Results Presentation | April 22, 2024 2024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5
Slide 6: We aim to accelerate total revenue growth through 2027
First Quarter 2024 Results Presentation | April 22, 2024 We aim to accelerate total revenue growth through 2027 Aiming to accelerate through 2027 >37.5 10% CAGR2 [23-25] RISE with SAP powered by a CLEAN CORE via BTP still with significant potential in installed base and in cross-selling 31.2 Total r
Slide 7: RISE & GROW have significant untapped growth potential
First Quarter 2024 Results Presentation | April 22, 2024 RISE & GROW have significant untapped growth potential with Cloud ERP & BTP into LoB portfolio RISE with SAP Supply chain On Premise Private Cloud remaining support revenue management conversion potential at 2-3x1 Business transformation via H
Slide 8: Achieve real-world results with SAP Business AI
First Quarter 2024 Results Presentation | April 22, 2024 Achieve real-world results with SAP Business AI Joule 1 1 Joule Unified copilot experience 2 across our portfolio Cloud ERP Supply chain management Human capital management Spend management Customer relationship management Business Technology
Slide 9: Slide 9
Slide 10: SAP Q1 2024 Financial Results
First Quarter 2024 Results Presentation | April 22, 2024 SAP Q1 2024 Financial Results Current cloud Total revenue Cloud & Software Cloud revenue Cloud ERP Suite backlog revenue revenue € millions € millions € millions € millions € millions 14,179 8,041 6,960 3,928 3,167 ▲ +27% (+28% @cc) ▲ +8% (+9%
Slide 11: Regional cloud revenue performance
First Quarter 2024 Results Presentation | April 22, 2024 Regional cloud revenue performance AMERICAS EMEA APJ Cloud revenue Cloud revenue Cloud revenue ▲ +17% ▲ +31% ▲ +27% (+19% @cc) (+31% @cc) (+35% @cc) Cloud & software Cloud & software Cloud & software revenue revenue revenue ▲ +9% ▲ +12% ▲ +5%
Slide 12: Revenue and gross profit development
First Quarter 2024 Results Presentation | April 22, 2024 Revenue and gross profit development . Revenue Gross Profit (Gross margin %) Non-IFRS in € millions, unless otherwise stated Q1 2024 ∆ in % ∆ in % @cc Q1 2024 ∆ in % ∆ in % @cc Cloud 3,928 24 25 2,849 27 28 (72.5) SaaS/PaaS 3,764 26 28 IaaS 16
Slide 13: Tax rate, Cash flow, and Earnings per share
First Quarter 2024 Results Presentation | April 22, 2024 Tax rate, Cash flow, and Earnings per share Effective tax rate Free cash flow Earnings per share (in €) percent € billions IFRS Non-IFRS basic diluted basic IFRS Non-IFRS 16.0 32.4 2.49 -0.71 -0.70 0.81 ▼ -24.5pp ▲ +3.3pp ▲ +28% ▼ N/A ▼ N/A ▲
Slide 14: 2024 Financial outlook and Non-financial outlook
First Quarter 2024 Results Presentation | April 22, 2024 2024 Financial outlook 2024 Non-financial outlook in € billions, unless otherwise stated; continuing operations Cloud revenue Cloud & Software Employee Customer Net revenue Engagement Index Promoter Score € billions @cc € billions @cc percent
Slide 15: Q&A
First Quarter 2024 Results Presentation | April 22, 2024 Q&A 2024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 15
Slide 16: Appendix
First Quarter 2024 Results Presentation | April 22, 2024 Appendix 2024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 16
Slide 17: Income statement: Q1 2024
First Quarter 2024 Results Presentation | April 22, 2024 Appendix Income statement: Q1 2024 * from continuing and discontinued operations IFRS Non-IFRS € millions, unless otherwise stated Q1 24 Q1 23 ∆% Q1 24 Q1 23 ∆% ∆ % @cc Cloud 3,928 3,178 24 3,928 3,178 24 25 Software licenses 203 276 -26 203 2
Slide 18: Gross margin development
First Quarter 2024 Results Presentation | April 22, 2024 Appendix Gross margin development Non-IFRS, in percent as reported Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Q1 24 Cloud 70.8 71.4 73.0 72.2 71.9 72.5 Software Licenses & Support 88.9 90.2 90.1 89.8 89.8 89.2 Cloud & Software 79.9 80.6 81.2 81.0 80.7 79.8
Slide 19: Cost ratios: First quarter 2024
First Quarter 2024 Results Presentation | April 22, 2024 Appendix Cost ratios: First quarter 2024 | Total revenue: €8.0bn Non-IFRS as percent of total revenue Research & Sales & General development marketing administration 20.7% €1.7bn 27.5% €2.2bn 4.5% €0.4bn -0.4pp | -0.5pp @cc -0.1pp | -0.2pp @cc
Slide 20: Balance sheet condensed: March 31, 2024 – IFRS
First Quarter 2024 Results Presentation | April 22, 2024 Appendix Balance sheet condensed: March 31, 2024 – IFRS Due to rounding, numbers may not add up precisely Assets Equity and liabilities € millions 03/31/24 12/31/23 € millions 03/31/24 12/31/23 Cash, cash equivalents and other financial assets
Slide 21: Cash flow development
First Quarter 2024 Results Presentation | April 22, 2024 Appendix Cash flow development Due to rounding, numbers may not add up precisely € millions, unless otherwise stated Q1/24 Q1/23 ∆ in % Operating cash flow 2,757 2,311 19 – Capital expenditure -187 -257 -27 – Payments of lease liabilities -78
Slide 22: Net debt
First Quarter 2024 Results Presentation | April 22, 2024 Appendix Net debt Due to rounding, numbers may not add up precisely € millions, unless otherwise stated 2024 2023 Net liquidity (+)/Net Debt (-) | 12/31/2023 | PY: 12/31/2022 3,521 -2,070 Operating cash flow 2,757 2,311 Capital expenditure -18
Slide 23: Additional outlook information and Non-IFRS adjustments
First Quarter 2024 Results Presentation | April 22, 2024 Appendix Additional outlook information and Non-IFRS adjustments Due to rounding, numbers may not add up precisely The Company expects a full-year 2024 effective tax rate (non-IFRS) of around 32% (2023: 30.3%) based on updated tax rate definit
Slide 24: Expected currency impact
First Quarter 2024 Results Presentation | April 22, 2024 Appendix Expected currency impact Expected currency impact based on March 2024 Level applied for 2024 in percentage points Q2 24 FY 24 Cloud revenue growth -1.5pp to +0.5pp -1.5pp to +0.5pp Cloud and software revenue growth -1.5pp to +0.5pp -1