Slide 1: First Quarter 2021 Financial Highlights
April 22, 2021 First Quarter 2021 Financial Highlights PUBLIC
Slide 2: Forward-looking statements
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 “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “predict,” “sho
Slide 3: Financial highlights
Financial highlights Cloud and Software Cloud Revenue Total Revenue Operating Profit Revenue in € millions in € millions in € millions in € millions IFRS Non-IFRS IFRS Non-IFRS IFRS Non-IFRS IFRS Non-IFRS +7% +7% +1% +1% -3% -3% -21% +17% (+13% cc) (+6% cc) (+2% cc) (+24% cc) Q1 Other Financial High
Slide 4: Strong performance across all regions
Strong performance across all regions Q1/21 Q1/21 Q1/21 Cloud Revenue Cloud Revenue Cloud Revenue Cloud and Software Revenue Cloud and Software Revenue Cloud and Software Revenue Canada and Mexico Germany and Switzerland For cloud revenue, had a robust performance were highlights Japan, Australia an
Slide 5: Gross margins of all business models up in the first quarter
Gross margins of all business models up in the first quarter Non-IFRS at constant currencies as reported FY/19 Q1/20 Q2/20 Q3/20 Q4/20 FY/20 Q1/21 Cloud 68.2 69,3 69,3 69,7 70,1 69.6 69,5 SaaS/PaaS – Intelligent Spend Group 78.1 78,7 79,7 78,3 78,9 78.9 79,1 SaaS/PaaS – Other 68.5 70,3 69,5 71,4 71,
Slide 6: First quarter 2021
First quarter 2021 Effective Tax Rate Decrease mainly resulted from tax effects related to changes in tax • IFRS: 20.0% | -7.7pp exempt income and a one-time change in deferred tax liabilities for taxable temporary differences associated with investments in subsidiaries • Non-IFRS: 18.7% | -8.5pp EP
Slide 7: Raising revenue metrics to reflect strong new cloud business performance
Raising revenue metrics to reflect strong new cloud business performance Actuals (Non-IFRS) Outlook (Non-IFRS @cc) Cloud Revenue Cloud Revenue Operating Cash Flow in a range of approx. Growth: Cloud and Software Revenue Free Cash Flow Cloud and Software Revenue above in a range of Total Revenue Grow
Slide 8: Appendix
Appendix
Slide 9: IFRS and Non-IFRS results Q1/21
IFRS Non-IFRS € millions, unless otherwise stated Q1/21 Q1/20 ∆% Q1/21 Q1/20 ∆% ∆ % at cc Cloud 2,145 2,011 7 2,147 2,012 7 13 Software licenses 483 451 7 483 451 7 11 Software support 2,801 2,934 -5 2,801 2,934 -5 0 Software licenses and support 3,283 3,386 -3 3,283 3,386 -3 1 Cloud and software 5,
Slide 10: Gross margins by business model
Non-IFRS, in percent as reported FY/18 Q1/19 Q2/19 Q3/19 Q4/19 FY/19 Q1/20 Q2/20 Q3/20 Q4/20 FY/20 Q1/21 Cloud 63.1 69,0 69,5 68.2 69,3 69,5 69,7 70,3 69.7 69,6 66,2 67,9 SaaS/PaaS – 77.8 78,0 78,1 78,0 78,0 78.1 78,8 79,9 78,3 79,1 78.9 78,7 Intelligent Spend Group SaaS/PaaS – 60.0 68.5 70,2 69,5 7
Slide 11: IFRS and Non-IFRS operating profit and expenses
IFRS Total operating expenses | Operating profit (loss) Total revenue • IFRS operating profit (loss) -21% to €960m (Q1/20: €1,210m) Q1/20 5,311 1,210 €6,521m • IFRS operating margin -3.4pp to 15.1% (Q1/20: 18.6%) Q1/21 5,387 960 €6,348m Non-IFRS Total operating expenses | Operating profit (loss) Tot
Slide 12: Total revenue, Non-IFRS
€6.3bn Total revenue, Non-IFRS as % of total revenue as % of total revenue as % of total revenue €0.3bn €1.1bn €1.5bn 17.0% 23.2% 4.6% +1.2pp -3.2pp -0.1pp +1.0pp* -3.1pp* -0.2pp* *Non-IFRS at constant currencies © 2020 SAP SE 2021 SAP SE or or an an SAP SAP affiliate company. All affiliate company.
Slide 13: Assets, equity and liabilities
Assets Equity and liabilities € millions 3/31/21 12/31/20 € millions 3/31/21 12/31/20 Cash, cash equivalents and other financial assets 10,332 5,311 Trade and other payables 1,203 1,213 Provisions 96 73 Trade and other receivables 6,617 6,593 Other liabilities 8,686 7,405 Other current assets 3,129
Slide 14: Operating cash flow and free cash flow
€ millions, unless otherwise stated Q1/21 Q1/20 ∆ Operating cash flow 3,085 2,984 +3% - Capital expenditure -153 -333 -54% - Payments of lease liabilities -84 -72 +17% Free cash flow 2,848 2,580 +10% Free cash flow in percent of total revenue 45 40 +5pp Free cash flow conversion rate 2.66 3.18 -0.52
Slide 15: Free cash flow and net debt
€ millions +1.847 +77 +3.085 –2.658 –153 –84 –927 +0 –6.503 Free Cash Flow +2.848 Net Operating Capital Lease Business Treasury Proceeds from Other Net Debt Cash Expen- Payments Combi- Shares IPO Debt 12/31/2020 Flow diture nations 3/31/2021 PY: –8.286 +2.984 –333 –72 –28 –150 +0 +57 –5.827 Net Liqu
Slide 16: Non-IFRS adjustments
Actual Amounts Actual Amounts Est. Amounts Non-IFRS adjustments Q1/20 Q1/21 for FY/21 €0m to Revenue adjustments €1m €2m €30m €540m to Acquisition-related charges €162m €149m €640m €2,300m Share-based payment expenses €93m €472m to €2,800m €150m to Restructuring charges €15m €157m €200m €2,990m Sum
Slide 17: Expected currency impact for the rest of the year
Expected Currency Impact Based on March 2021 Level for the Rest of the Year in percentage points Q2 FY Cloud Revenue -6pp to -4pp -4pp to -2pp Cloud and software -5pp to -3pp -3pp to -1pp Operating profit -5pp to -3pp -3pp to -1pp © 2020 SAP SE 2021 SAP SE or or an an SAP SAP affiliate company. All
Slide 18: Q1/17 Q2/17 Q3/17
>16,400 >16,000 >15,100 >14,600 >13,800 ~14,100 >12,600 >12,000 ~11,500 >11,100 >10,000 >9,500 ~8,900 >8,500 ~7,500 >6,900 ~6,400 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 © 2020 SAP SE 2021 SAP SE or or an an SAP SAP affiliate company. All
Slide 19: Cloud revenue and current cloud backlog
All figures are Non-IFRS and growth rates at constant currencies unless otherwise stated S/4HANA Cloud Revenue Current Cloud Backlog1 Cloud Revenue2 +13% +19% +43% €2,147m €7.63bn €227m S/4HANA Qualtrics – Current Cloud Backlog2 Segment Revenue +43% +37% €1,036m €221m 1) Current Cloud Backlog replac
Slide 20: First Quarter 2021 Financial Highlights
April 22, 2021 First Quarter 2021 Financial Highlights PUBLIC