Slide 1: Third Quarter 2023 Results
Third Quarter 2023 Results Presentation | October 18, 2023 Third 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
Third Quarter 2023 Results Presentation | October 18, 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 assumption
Slide 3: Christian Klein, CEO
Third Quarter 2023 Results Presentation | October 18, 2023 Christian Klein CEO 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 4: We continuously deliver on our commitments with strong performance in Q3
Third Quarter 2023 Results Presentation | October 18, 2023 Q3 2023 Customer Momentum Strategy Update We continuously deliver on our commitments with strong performance in Q3 Current Cloud Cloud Revenue Thereof S/4HANA Backlog 3,472 914 ▲ +16% (+23% @cc) ▲ +67% (+77% @cc) 12,269 SaaS Revenue 2,558 ▲
Slide 5: We deliver unique customer value with our best-of-suite offering
Third Quarter 2023 Results Presentation | October 18, 2023 Q3 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: We keep the momentum
Third Quarter 2023 Results Presentation | October 18, 2023 Q3 2023 Customer Momentum Strategy Update We keep the momentum RISE with SAP Installed base Customers customers maintenance conversion in 80 countries 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 7: The bigger picture: Business transformation
Third Quarter 2023 Results Presentation | October 18, 2023 Q3 2023 Customer Momentum Strategy Update The bigger picture: Business transformation On September 7, SAP and LeanIX GmbH announced that SAP has entered into an agreement to acquire LeanIX. The transaction is expected to close in the fourth
Slide 8: SAP Business AI
Third Quarter 2023 Results Presentation | October 18, 2023 Q3 2023 Customer Momentum Strategy Update SAP Business AI Relevant. Reliable. Responsible. Finance | Supply Chain | HR | Procurement | Marketing and Commerce | Sales and Services | IT Human capital Spend management Customer relationship Busi
Slide 9: Dominik Asam, CFO
Third Quarter 2023 Results Presentation | October 18, 2023 Dominik Asam CFO 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 10: SAP Q3 2023 Financial Results
Third Quarter 2023 Results Presentation | October 18, 2023 Financial Highlights Regional Performance Gross Profit Development Tax Rate, EPS & Cash Flow Outlook and Ambition SAP Q3 2023 Financial Results in € millions, unless otherwise stated; based on SAP group results from continuing operations Tot
Slide 11: Regional cloud revenue performance
Third Quarter 2023 Results Presentation | October 18, 2023 Financial Highlights Regional Performance Gross Profit Development Tax Rate, EPS & Cash Flow Outlook Regional cloud revenue performance AMERICAS EMEA APJ Cloud revenue Cloud revenue Cloud revenue percent percent percent ▲ +8% ▲ +30% ▲ +14% (
Slide 12: Gross Profit Development
Third Quarter 2023 Results Presentation | October 18, 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 Q3/23 ∆ in % ∆ in % @cc Q3/
Slide 13: Tax rate, EPS & Cash flow
Third Quarter 2023 Results Presentation | October 18, 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 Third quarter | percent Third quarter | €S Non-IFRS Third quarter
Slide 14: SAP reaffirms 2023 outlook
Third Quarter 2023 Results Presentation | October 18, 2023 Financial Highlights Regional Performance Gross Profit Development Tax Rate, EPS & Cash Flow Outlook SAP reaffirms 2023 outlook in € billions, unless otherwise stated; continuing operations FY 2023 Non-Financial FY 2023 Outlook1) Outlook Clo
Slide 15: Q&A
Third Quarter 2023 Results Presentation | October 18, 2023 Q&A 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 16: Appendix
Third Quarter 2023 Results Presentation | October 18, 2023 Appendix 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 17: Income statement: Third quarter 2023
Third Quarter 2023 Results Presentation | October 18, 2023 Appendix Income statement: Third quarter 2023 IFRS Non-IFRS € millions, unless otherwise stated Q3 23 Q3 22 ∆% Q3 23 Q3 22 ∆% ∆ % @cc Cloud 3,472 2,986 16 3,472 2,986 16 23 Software licenses 335 406 -17 335 406 -17 -14 Software support 2,872
Slide 18: Income statement: First nine months 2023
Third Quarter 2023 Results Presentation | October 18, 2023 Appendix Income statement: First nine months 2023 IFRS Non-IFRS € millions, unless otherwise stated Q1-Q3/ 23 Q1-Q3/ 22 ∆% Q1-Q3/ 23 Q1-Q3/ 22 ∆% ∆ % @cc Cloud 9,965 8,348 19 9,965 8,348 19 22 Software licenses 927 1,149 -19 927 1,149 -19 -1
Slide 19: Gross margin development
Third Quarter 2023 Results Presentation | October 18, 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 Q3 23 Cloud 68.4 71.2 70.3 73.7 68.9 70.8 70.3 71.4 72.2 SaaS 71.3 73.4 72.1 71.6 72.5 73.9 71.3 72.6 71.0 PaaS 81.7 80.8 84.3
Slide 20: Cost ratios: Third quarter 2023
Third Quarter 2023 Results Presentation | October 18, 2023 Appendix Cost ratios: Third quarter 2023 €7.7bn Total revenue R&D S&M G&A as % of total revenue as % of total revenue as % of total revenue €1.3bn €1.9bn €0.3bn 17.4% 23.9% 3.8% -1.8pp 0.2pp -0.1pp -1.9pp* 0.1pp* -0.1pp* All numbers are Non-
Slide 21: Cost ratios: First nine months 2023
Third Quarter 2023 Results Presentation | October 18, 2023 Appendix Cost ratios: First nine months 2023 €22.7bn Total revenue R&D S&M G&A as % of total revenue as % of total revenue as % of total revenue €4.1bn €5.6bn €0.9bn 18.1% 24.5% 3.8% -1.4pp -0.2pp -0.2pp -1.4pp* -0.3pp* -0.2pp* All numbers a
Slide 22: Balance sheet condensed: September 30, 2023 – IFRS
Third Quarter 2023 Results Presentation | October 18, 2023 Appendix Balance sheet condensed: September 30, 2023 – IFRS Assets Equity and liabilities € millions 09/30/23 12/31/22 € millions 09/30/23 12/31/22 Cash, cash equivalents and other financial assets 12,428 9,860 Trade and other payables 1,618
Slide 23: Cash flow development
Third Quarter 2023 Results Presentation | October 18, 2023 Appendix Cash flow development € millions, unless otherwise stated YTD/23 YTD/22 ∆ in % Operating cash flow 4,284 3,653 +17 – Capital expenditure –595 –685 –13 – Payments of lease liabilities –266 –307 –13 Free cash flow 3,423 2,662 +29 Free
Slide 24: Net debt
Third Quarter 2023 Results Presentation | October 18, 2023 Appendix Net debt € millions, unless otherwise stated 2023 2022 Net Debt | 12/31/2022 | PY: 12/31/2021 –2,067 –1,563 Operating cash flow 4,284 3,653 Capital expenditure –595 –685 Payments of lease liabilities –266 –307 Business combinations
Slide 25: Additional outlook information and Non-IFRS adjustments
Third Quarter 2023 Results Presentation | October 18, 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% (2
Slide 26: Expected currency impact 2023
Third Quarter 2023 Results Presentation | October 18, 2023 Appendix Expected currency impact 2023 Expected Currency Impact Based on September 2023 Level Applied for 2023 in percentage points Q4 23 FY 23 Cloud revenue growth -5pp to -3pp -4pp to -2pp Cloud and software revenue growth -4pp to -2pp -4p