Slide 1: Second Quarter 2023 Results
Second Quarter 2023 Results Presentation | July 20, 2023 Second Quarter 2023 Results Christian Klein, CEO Dominik Asam, CFO 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 2: Safe Harbor Statement
Second Quarter 2023 Results Presentation | July 20, 2023 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
Second Quarter 2023 Results Presentation | July 20, 2023 Christian Klein CEO 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 4: Strong Performance in Q2 2023
Second Quarter 2023 Results Presentation | July 20, 2023 Q2 2023 Customer Momentum Strategy Update Strong Performance in Q2 2023 Steady growth of current cloud backlog and cloud revenue Current Cloud Cloud Revenue Thereof S/4HANA Backlog 3,316 823 ▲ +19% (+22% @cc) ▲ +74% (+79% @cc) 11,537 SaaS Reve
Slide 5: We deliver unique customer value with our best-of-suite offering
Second Quarter 2023 Results Presentation | July 20, 2023 Q2 2023 Customer Momentum Strategy Update We deliver unique customer value with our best-of-suite offering 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 6: SAP Business AI
Second Quarter 2023 Results Presentation | July 20, 2023 Q2 2023 Customer Momentum Strategy Update We will fundamentally change the way in which companies operate Relevant. SAP Business AI Reliable. Responsible. 2023 2023 SAP SAP SESE oror anan SAP SAP affiliate affiliate company. company. AllAll ri
Slide 7: Business AI provides a unique opportunity
Second Quarter 2023 Results Presentation | July 20, 2023 Q2 2023 Customer Momentum Strategy Update Business AI provides a unique opportunity We are accelerating our path …and tap into significant towards doubling our TAM… revenue potential 2x & 2023 2028 Calculations performed by SAP. Gartner®, Mark
Slide 8: SAP Business AI
Second Quarter 2023 Results Presentation | July 20, 2023 Q2 2023 Customer Momentum Strategy Update We will fundamentally change the way in which companies operate Relevant. SAP Business AI Reliable. Responsible. 2023 2023 SAP SAP SESE oror anan SAP SAP affiliate affiliate company. company. AllAll ri
Slide 9: SAP Business AI: Relevant. Reliable. Responsible.
Second Quarter 2023 Results Presentation | July 20, 2023 Q2 2023 Customer Momentum Strategy Update SAP Business AI Relevant. Reliable. Responsible. Spend Customer Partner Cloud Human capital management and relationship ecosystem ERP management business network management extension & solutions With e
Slide 10: Dominik Asam, CFO
Second Quarter 2023 Results Presentation | July 20, 2023 Dominik Asam CFO 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 11: SAP Q2 2023 Financial Results
Second Quarter 2023 Results Presentation | July 20, 2023 Financial Highlights Regional Performance Gross Profit Development Tax Rate, EPS & Cash Flow Outlook and Ambition SAP Q2 2023 Financial Results in € millions, unless otherwise stated; based on SAP group results from continuing operations Total
Slide 12: Strong cloud revenue performance across all regions
Second Quarter 2023 Results Presentation | July 20, 2023 Financial Highlights Regional Performance Gross Profit Development Tax Rate, EPS & Cash Flow Outlook Strong cloud revenue performance across all regions AMERICAS EMEA APJ Cloud revenue Cloud revenue Cloud revenue percent percent percent ▲ +14%
Slide 13: Gross Profit Development
Second Quarter 2023 Results Presentation | July 20, 2023 Financial Highlights Regional Performance Gross Profit Development Tax Rate, EPS & Cash Flow Outlook Gross Profit Development . Revenue Gross Profit (Gross margin %) Non-IFRS in € millions, unless otherwise stated Q2/23 ∆ in % ∆ in % @cc Q2/23
Slide 14: Tax rate, EPS & Cash flow
Second Quarter 2023 Results Presentation | July 20, 2023 Financial Highlights Regional Performance Gross Profit Development Tax Rate, EPS & Cash Flow Outlook Tax rate, EPS & Cash flow Effective tax rate Earnings per share Cash flow Second quarter | percent Second quarter | €S Non-IFRS Second quarter
Slide 15: 2023 outlook updated for revenue and operating profit
Second Quarter 2023 Results Presentation | July 20, 2023 Financial Highlights Regional Performance Gross Profit Development Tax Rate, EPS & Cash Flow Outlook 2023 outlook updated for revenue and operating profit in € billions, unless otherwise stated; continuing operations FY 2023 Non-Financial FY 2
Slide 16: Q&A
Second Quarter 2023 Results Presentation | July 20, 2023 Q&A 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 17: Appendix
Second Quarter 2023 Results Presentation | July 20, 2023 Appendix 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 18: Income statement: Second quarter 2023
Second Quarter 2023 Results Presentation | July 20, 2023 Appendix Income statement: Second quarter 2023 IFRS Non-IFRS € millions, unless otherwise stated Q2 23 Q2 22 ∆% Q2 23 Q2 22 ∆% ∆ % @cc Cloud 3,316 2,796 19 3,316 2,796 19 22 Software licenses 316 426 -26 316 426 -26 -24 Software support 2,873
Slide 19: Income statement: First six months 2023
Second Quarter 2023 Results Presentation | July 20, 2023 Appendix Income statement: First six months 2023 IFRS Non-IFRS € millions, unless otherwise stated Q1-Q2/ 23 Q1-Q2/ 22 ∆% Q1-Q2/ 23 Q1-Q2/ 22 ∆% ∆ % @cc Cloud 6,493 5,362 21 6,493 5,362 21 22 Software licenses 591 743 -20 591 743 -20 -19 Softw
Slide 20: Gross margin development
Second Quarter 2023 Results Presentation | July 20, 2023 Appendix Gross margin development Non-IFRS, in percent as reported FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Cloud 68.4 71.2 70.3 71.4 72.2 68.9 70.8 70.3 SaaS 71.3 73.4 72.1 71.6 72.5 71.3 72.6 71.0 PaaS 81.7 80.8 84.3 80.7 81.3 79.7 81
Slide 21: Cost ratios: Second quarter 2023
Second Quarter 2023 Results Presentation | July 20, 2023 Appendix Cost ratios: Second quarter 2023 €7.6bn Total revenue R&D S&M G&A as % of total revenue as % of total revenue as % of total revenue €1.4bn €1.9bn €0.3bn 18.0% 24.7% 3.8% -1.3pp -1.5pp -0.4pp -1.4pp* -1.7pp* -0.4pp* All numbers are Non
Slide 22: Cost ratios: First six months 2023
Second Quarter 2023 Results Presentation | July 20, 2023 Appendix Cost ratios: First six months 2023 €15.0bn Total revenue R&D S&M G&A as % of total revenue as % of total revenue as % of total revenue €2.8bn €3.7bn €0.6bn 18.4% 24.8% 3.8% -1.2pp -0.4pp -0.2pp -1.2pp* -0.6pp* -0.2pp* All numbers are
Slide 23: Balance sheet condensed: June 30, 2023 – IFRS
Second Quarter 2023 Results Presentation | July 20, 2023 Appendix Balance sheet condensed: June 30, 2023 – IFRS Assets Equity and liabilities € millions 06/30/23 12/31/22 € millions 06/30/23 12/31/22 Cash, cash equivalents and other financial assets 14,622 9,860 Trade and other payables 1,584 2,147
Slide 24: Cash flow development
Second Quarter 2023 Results Presentation | July 20, 2023 Appendix Cash flow development € millions, unless otherwise stated HY1/23 HY1/22 ∆ in % Operating cash flow 3,160 2,766 +14 – Capital expenditure –413 –408 +1 – Payments of lease liabilities –188 –209 –10 Free cash flow 2,559 2,149 +19 Free ca
Slide 25: Net debt
Second Quarter 2023 Results Presentation | July 20, 2023 Appendix Net debt € millions, unless otherwise stated 2023 2022 Net Debt | 12/31/2022 | PY: 12/31/2021 –2,070 –1,563 Operating cash flow 3,160 2,766 Capital expenditure –413 –408 Payments of lease liabilities –188 –209 Business combinations 0
Slide 26: Additional outlook information and Non-IFRS adjustments
Second Quarter 2023 Results Presentation | July 20, 2023 Appendix Additional outlook information and Non-IFRS adjustments The Company continues to expect a full-year 2023 effective tax rate (IFRS) of around 28.0% – 32.0% (2022: 32.0%) and an effective tax rate (non-IFRS) of around 26.0% – 28.0% (202
Slide 27: Expected currency impact 2023
Second Quarter 2023 Results Presentation | July 20, 2023 Appendix Expected currency impact 2023 Expected Currency Impact Based on June 2023 Level Applied for 2023 in percentage points Q3 23 FY 23 Cloud revenue growth –7pp to –5pp –4pp to –2pp Cloud and software revenue growth –6pp to –4pp –3.5pp to