Sap Se · XETR:SAP

Sap — Investor Day (May 2023)

52 slides from Sap's investor day presentation, May 16, 2023

Slide 1: Financial Analyst & Investor Conference
Financial Analyst & Investor Conference
Slide 2: Opening Remarks
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Opening Remarks Anthony Coletta Chief Investor Relations Officer 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 3: Agenda
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 AGENDA 1:00 – 1:05 pm Opening Remarks & Safe Harbor Anthony Coletta, Chief Investor Relations Officer 1:05 – 1:35 pm Vision & Strategy Christian Klein, CEO and Executive Board Member 1:35 – 2:05 pm Go-To-Market Update Scott Russel
Slide 4: Safe Harbor Statement
SAP Sapphire Financial Analyst and Investor Conference | May 16, 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
Slide 5: Vision & Strategy
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Vision & Strategy Christian Klein CEO 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 6: We are more relevant than ever
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Why SAP How we deliver We are more relevant than ever Our technology focuses on our customers’ biggest opportunities Exemplary outcome Exemplary outcome Exemplary outcome 10x $250m 10% faster planning despite larger data savings i
Slide 7: Focus x Scalability x Innovation = Next level ambition
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Why SAP How we deliver Focus x Scalability x Innovation = Next level ambition FOCUS We crystalize the full value of our portfolio SCALABILITY AMBITION We drive profitable growth We enter the next phase of our transformation INNOVA
Slide 8: We have a strong portfolio centered around ERP and BTP
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Why SAP How we deliver Focus x Scalability x Innovation = Next level ambition We have a strong portfolio centered around ERP and BTP Clear focus to crystalize the full value of our portfolio Increasing focus in our portfolio Growi
Slide 9: We have massive growth potential ahead of us
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Why SAP How we deliver Focus x Scalability x Innovation = Next level ambition We have massive growth potential ahead of us Largest TAM in the industry provides Strong position in key markets Worldwide market position by revenue, 2
Slide 10: We transform enterprises with our integrated portfolio
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Why SAP How we deliver Focus x Scalability x Innovation = Next level ambition We transform enterprises with our integrated portfolio The whole is greater than the sum of its parts as showcased by our end-to-end business capabiliti
Slide 11: Our AI is built for businesses
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Why SAP How we deliver Focus x Scalability x Innovation = Next level ambition Our AI is built for businesses We infuse AI into business processes and commercialize AI via uplift on user price RECRUIT TO RETIRE DESIGN TO OPERATE SO
Slide 12: We deliver scale with our profitable growth formula
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Why SAP How we deliver Focus x Scalability x Innovation = Next level ambition We deliver scale with our profitable growth formula Land Adopt Cross-sell with S/4HANA Cloud the BTP our LoB portfolio 2023 SAP SE or an SAP affiliate c
Slide 13: Land with S/4HANA Cloud
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Why SAP How we deliver Focus x Scalability x Innovation = Next level ambition Land with S/4HANA Cloud MOVE our Installed Base: Supporting enterprises with their holistic business transformation S/4HANA Cloud, private/public editio
Slide 14: Adopt the Business Technology Platform
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Why SAP How we deliver Focus x Scalability x Innovation = Next level ambition Adopt the Business Technology Platform >80% BTP attach rate to RISE with SAP in 2022 >45% PaaS Growth Rate Q1 2023 (YoY) Platform (PaaS) / App (SaaS) Sp
Slide 15: Cross-sell our line of business portfolio
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Why SAP How we deliver Focus x Scalability x Innovation = Next level ambition Cross-sell our line of business portfolio We have significant cross-sell potential 1 2 3 4 Cloud customers with x number of SAP Cloud solutions in 2022
Slide 16: We enable a transformation journey
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Why SAP How we deliver Focus x Scalability x Innovation = Next level ambition We enable a transformation journey Transformation Step 2: Transformation Step 1: Continuous optimization & simplification OnPremise Migration & standard
Slide 17: We accelerate our pace of innovation in the cloud
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Why SAP How we deliver Focus x Scalability x Innovation = Next level ambition We accelerate our pace of innovation in the cloud SAP Datasphere Unleashing the power of business data Cloud ERP + BTP GROW with SAP Targeting mid-marke
Slide 18: We accelerate our pace of innovation in the cloud
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Why SAP How we deliver Focus x Scalability x Innovation = Next level ambition We accelerate our pace of innovation in the cloud Partnerships for AI Building the most intelligent, collaborative & networked HR solution Human Capital
Slide 19: We raise our ambition to the next level
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Why SAP How we deliver Focus x Scalability x Innovation = Next level ambition We raise our ambition to the next level Numbers in €B excl. Qualtrics (update for continuing operations1) Illustrative Revenue and profit 2025+ accelera
Slide 20: Our goal is clear
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Why SAP How we deliver Focus x Scalability x Innovation = Next level ambition Our goal is clear Source: IDC, Worldwide Software Tracker, April 2023. “Enterprise Applications” refers to the consolidated view of IDC Secondary market
Slide 21: Go-to-Market Update
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Go-to-Market Update Scott Russell Customer Success 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 22: We put customers at the heart of everything we do
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Customer Centricity GTM Performance Opportunity Non-linear Growth Showcase We put customers at the heart of everything we do Previous go-to-market improvements are leading to tangible outcomes for SAP customers Dedicated Cloud Suc
Slide 23: We build long-term relationships based on trust
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Customer Centricity GTM Performance Opportunity Non-linear Growth Showcase We build long-term relationships based on trust S/4HANA customers are continuously growing their investment in SAP Cloud solutions overtime S/4HANA custome
Slide 24: We extend our reach across multiple business domains
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Customer Centricity GTM Performance Opportunity Non-linear Growth Showcase We extend our reach across multiple business domains Cloud ERP drastically increases customers buy-in into SAP’s intelligent sustainable enterprise strateg
Slide 25: We create well-balanced Cloud revenue streams
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Customer Centricity GTM Performance Opportunity Non-linear Growth Showcase We create well-balanced Cloud revenue streams SAP continues to gain traction with both new and existing Cloud customers across the globe Cloud Revenue Grow
Slide 26: We capitalize on our unique opportunity
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Customer Centricity GTM Performance Opportunity Non-linear Growth Showcase We capitalize on our unique opportunity SAP is committed to guide on-premise customers on a seamless path to Cloud ERP Pool of ~25,000 customers1 to fuel g
Slide 27: We amplify our reach through our flourishing ecosystem
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Customer Centricity GTM Performance Opportunity Non-linear Growth Showcase We amplify our reach through our flourishing ecosystem SAP expects an increasingly strong participation from the partner ecosystem Share ecosystem-assisted
Slide 28: We deliver non-linear Cloud growth
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Customer Centricity GTM Performance Opportunity Non-linear Growth Showcase We deliver non-linear Cloud growth SAP has accelerated momentum by building an efficient and robust Cloud go-to-market engine De-coupled Cloud Revenue and
Slide 29: What does a journey to the Cloud look like?
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Customer Centricity GTM Performance Opportunity Non-linear Growth Showcase What does a journey to the Cloud look like? Insights from a semiconductor company that has progressively increased its use of SAP Cloud solutions AMD’s Jou
Slide 30: Customer Testimonial
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Customer Centricity GTM Performance Opportunity Non-linear Growth Showcase Customer Testimonial 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 31: Financial Update
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Financial Update Dominik Asam CFO 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 32: Fresh perspective
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Fresh perspective Reflecting Ambition update Looking ahead Closing Fresh perspective 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 33: A customer's perspective, 2020 strategy reset, communication principles
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Fresh perspective Reflecting Ambition update Looking ahead Closing A CUSTOMER’S PERSPECTIVE 2020 STRATEGY RESET COMMUNICATION PRINCIPLES Public
Slide 34: Reflecting
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Fresh perspective Reflecting Ambition update Looking ahead Closing 1 Reflecting 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 35: 2020 to 2022 transition journey
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Fresh perspective Reflecting Ambition update Looking ahead Closing 2020 to 2022 transition journey Executing amidst a challenging environment Original Ambition 2025 as presented in Actual performance 2020 including Qualtrics 2019
Slide 36: Ambition update
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Fresh perspective Reflecting Ambition update Looking ahead Closing 2 Ambition update 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 37: We update our 2025 Ambition
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Fresh perspective Reflecting Ambition update Looking ahead Closing We update our 2025 Ambition Growth trajectory of continuing operations compensates revenue impact of Qualtrics divestiture Original Ambition 2025 Updated Ambition
Slide 38: Building blocks of the Ambition update
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Fresh perspective Reflecting Ambition update Looking ahead Closing Building blocks of the Ambition update Incremental revenue from cloud momentum and resilience of our business Cloud revenue Total revenue >€22.0bn >€21.5bn >€36.0b
Slide 39: Building blocks of the Ambition update
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Fresh perspective Reflecting Ambition update Looking ahead Closing Building blocks of the Ambition update Ambitious bottom-line target for continuing operations reaffirmed Cloud gross profit1 Operating profit Free cash flow ~€17.6
Slide 40: Looking ahead
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Fresh perspective Reflecting Ambition update Looking ahead Closing 3 Looking ahead 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 41: Cloud revenue
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Fresh perspective Reflecting Ambition update Looking ahead Closing Cloud revenue Applications and Platform drive rapid and sustained growth at scale Cloud revenue Cloud gross profit Operating profit Free cash flow Cloud revenue So
Slide 42: Cloud gross profit
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Fresh perspective Reflecting Ambition update Looking ahead Closing Cloud gross profit Public and private cloud drive >2x expansion Cloud revenue Cloud gross profit Operating profit Free cash flow Cloud Gross Margin 2025e ~€16.3bn
Slide 43: Operating profit
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Fresh perspective Reflecting Ambition update Looking ahead Closing Operating profit Gross profit expansion drives double-digit operating profit growth Cloud revenue Cloud gross profit Operating profit Free cash flow ~13% ~€11.5bn
Slide 44: Free cash flow
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Fresh perspective Reflecting Ambition update Looking ahead Closing Free cash flow Operating profit expansion drives dynamic free cash flow generation Cloud revenue Cloud gross profit Operating profit Free cash flow 72% 65% 56% 61%
Slide 45: Free cash flow growth and cash conversion
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Fresh perspective Reflecting Ambition update Looking ahead Closing Free cash flow growth and cash conversion Operating profit expansion drives dynamic free cash flow generation Free cash flow | 2022 to 2025 Free cash flow 2025 | C
Slide 46: Capital returns
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Fresh perspective Reflecting Ambition update Looking ahead Closing Capital returns New €5bn share buyback program reflects SAP’s commitment to a disciplined capital allocation Dividend per share Capital returns New buyback Our cap
Slide 47: Closing
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Fresh perspective Reflecting Ambition update Looking ahead Closing Closing 2023 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 48: The best is yet to come...
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Fresh perspective Reflecting Ambition update Looking ahead Closing The best is yet to come... ü Further acceleration of total revenue growth ü Highly resilient business model with share of more predictable revenue growing towards
Slide 50: Executive Board Q&A
SAP Sapphire Financial Analyst and Investor Conference | May 16, 2023 Executive Board Q&A Julia Dominik Christian Sabine Scott White Asam Klein Bendiek Russell Chief Marketing & Chief Financial Officer Chief Executive Officer Chief People & Chief Revenue Officer & Solutions Officer Operating Officer
Slide 52: Follow us
Follow us www.sap.com/contactsap © 2023 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. The information contained herein may be c

SAP — Investor Day (May 2023) on 6ix

Sap — Investor Day (May 2023)

Slide 1: Financial Analyst & Investor Conference

Slide 2: Opening Remarks

Slide 3: Agenda

Slide 4: Safe Harbor Statement

Slide 5: Vision & Strategy

Slide 6: We are more relevant than ever

Slide 7: Focus x Scalability x Innovation = Next level ambition

Slide 8: We have a strong portfolio centered around ERP and BTP

Slide 9: We have massive growth potential ahead of us

Slide 10: We transform enterprises with our integrated portfolio

Slide 11: Our AI is built for businesses

Slide 12: We deliver scale with our profitable growth formula

Slide 13: Land with S/4HANA Cloud

Slide 14: Adopt the Business Technology Platform

Slide 15: Cross-sell our line of business portfolio

Slide 16: We enable a transformation journey

Slide 17: We accelerate our pace of innovation in the cloud

Slide 18: We accelerate our pace of innovation in the cloud

Slide 19: We raise our ambition to the next level

Slide 20: Our goal is clear

Slide 21: Go-to-Market Update

Slide 22: We put customers at the heart of everything we do

Slide 23: We build long-term relationships based on trust

Slide 24: We extend our reach across multiple business domains

Slide 25: We create well-balanced Cloud revenue streams

Slide 26: We capitalize on our unique opportunity

Slide 27: We amplify our reach through our flourishing ecosystem

Slide 28: We deliver non-linear Cloud growth

Slide 29: What does a journey to the Cloud look like?

Slide 30: Customer Testimonial

Slide 31: Financial Update

Slide 32: Fresh perspective

Slide 33: A customer's perspective, 2020 strategy reset, communication principles

Slide 34: Reflecting

Slide 35: 2020 to 2022 transition journey

Slide 36: Ambition update

Slide 37: We update our 2025 Ambition

Slide 38: Building blocks of the Ambition update

Slide 39: Building blocks of the Ambition update

Slide 40: Looking ahead

Slide 41: Cloud revenue

Slide 42: Cloud gross profit

Slide 43: Operating profit

Slide 44: Free cash flow

Slide 45: Free cash flow growth and cash conversion

Slide 46: Capital returns

Slide 47: Closing

Slide 48: The best is yet to come...

Slide 49: BREAK

Slide 50: Executive Board Q&A

Slide 51: Thank you!

Slide 52: Follow us