Slide 1: Second Quarter 2024 Results
Second Quarter 2024 Results Christian Klein, CEO Dominik Asam, CFO July 22, 2024 Public
Slide 2: Safe Harbor Statement
Second Quarter 2024 Results Presentation | July 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
Slide 4: SAP Business AI
SAP Business AI SAP accelerates pace of innovation in the cloud with SAP Business AI 1 Joule 1 Unified copilot experience across our portfolio 2 2 AI Capabilities Embedded or customized AI by partner, customer, or SAP 3 3 AI Foundation Integrated enterprise data, security, and compliance 2024 SAP SE
Slide 5: RISE with SAP
RISE with SAP Further strengthening SAP’s transformation offering supported by AI Discover Plan and and explore prepare PROCESS APPLICATIONS DATA PEOPLE Run Move and innovate and deploy 2024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5
Slide 6: Our growth momentum remained strong in Q2
Our growth momentum remained strong in Q2 Cloud revenue in € millions (yoy @cc) Current cloud Cloud gross profit in € millions (yoy @cc) backlog € millions 14,808 ▲ +28% (+28% @cc) Cloud revenue € millions 3,043 (+29%) 4,153 2,849 ▲ +25% (+25% @cc) (+28%) 2,669 2,535 (+30%) Cloud ERP Suite (+28%) 2,
Slide 7: Second Quarter 2024 Results Presentation
Second Quarter 2024 Results Presentation | July 22, 2024 2024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7
Slide 8: Accelerating total revenue growth through 2027
Accelerating total revenue growth through 2027 Capitalizing on several SAP-sized opportunities Top-line Accelerating RISE with SAP through 2027 Still ~11B€ maintenance to be converted to cloud revenue at 2-3x >€37.5B GROW with SAP 10% CAGR [23-25] Increasing share in €100B Public Cloud ERP market To
Slide 9: Dominik Asam, CFO
Slide 10: SAP Q2 2024 Financial Results
Second Quarter 2024 Results Presentation | July 22, 2024 SAP Q2 2024 Financial Results Current cloud Total revenue Cloud & software Cloud revenue Cloud ERP Suite backlog revenue revenue € millions € millions € millions € millions € millions 14,808 8,288 7,175 4,153 3,414 ▲ +28% (+28% @cc) ▲ +10% (+1
Slide 11: Regional revenue performance
Second Quarter 2024 Results Presentation | July 22, 2024 Regional revenue performance AMERICAS EMEA APJ Cloud revenue Cloud revenue Cloud revenue ▲ +18% ▲ +32% ▲ +33% (+17% @cc) (+31% @cc) (+38% @cc) Cloud & software Cloud & software Cloud & software revenue revenue revenue ▲ +10% ▲ +12% ▲ +7% (+9%
Slide 12: Revenue and gross profit development
Second Quarter 2024 Results Presentation | July 22, 2024 Revenue and gross profit development . Revenue Gross Profit (Gross margin %) Non-IFRS in € millions, unless otherwise stated Q2 2024 ∆ in % ∆ in % @cc Q2 2024 ∆ in % ∆ in % @cc 3,043 Cloud 4,153 25 25 28 29 (73.3) SaaS/PaaS 4,018 28 28 IaaS 13
Slide 13: Tax rate, Cash flow, and Earnings per share
Second Quarter 2024 Results Presentation | July 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 33.8 33.6 1.29 0.76 0.75 1.10 ▲ +0.1pp ▲ +0.7pp ▲ +114% ▲ +22% ▲ +22% ▲
Slide 14: 2024 Financial outlook and Non-financial outlook
Second Quarter 2024 Results Presentation | July 22, 2024 2024 Financial outlook 2024 Non-financial outlook Cloud revenue Cloud & software Employee Customer Net revenue Engagement Index Promoter Score € billions @cc € billions @cc percent points 17.0 – 17.3 29.0 – 29.5 70 – 74 9 – 13 ▲ +24% – 27% (20
Slide 15: Q&A
Second Quarter 2024 Results Presentation | July 22, 2024 Q&A 2024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 15
Slide 16: Appendix
Second Quarter 2024 Results Presentation | July 22, 2024 Appendix 2024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 16
Slide 17: Income statement: Second quarter 2024
Second Quarter 2024 Results Presentation | July 22, 2024 Appendix Income statement: Second quarter 2024 * from continuing and discontinued operations IFRS Non-IFRS € millions, unless otherwise stated Q2 24 Q2 23 ∆% Q2 24 Q2 23 ∆% ∆ % @cc Cloud 4,153 3,316 25 4,153 3,316 25 25 Software licenses 229 3
Slide 18: Income statement: First six months 2024
Second Quarter 2024 Results Presentation | July 22, 2024 Appendix Income statement: First six months 2024 * from continuing and discontinued operations IFRS Non-IFRS € millions, unless otherwise stated Q1-Q2 24 Q1-Q2 23 ∆% Q1-Q2 24 Q1-Q2 23 ∆% ∆ % @cc Cloud 8,082 6,493 24 8,082 6,493 24 25 Software
Slide 19: Gross margin development
Second Quarter 2024 Results Presentation | July 22, 2024 Appendix Gross margin development Non-IFRS, in percent as reported Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Q1 24 Q2 24 Cloud 70.8 71.4 73.0 72.2 71.9 72.5 73.3 Software licenses & support 88.9 90.2 90.1 89.8 89.8 89.2 89.7 Cloud & software 79.9 80.6 81.
Slide 20: Cost ratios: Second quarter 2024
Second Quarter 2024 Results Presentation | July 22, 2024 Appendix Cost ratios: Second quarter 2024 | Total revenue: €8.3bn Non-IFRS as percent of total revenue Research & Sales & General development marketing administration 19.3% €1.6bn 26.0% €2.2bn 4.0% €0.3bn -1.3pp | -1.3pp @cc -1.8pp | -1.9pp @c
Slide 21: Cost ratios: First six months 2024
Second Quarter 2024 Results Presentation | July 22, 2024 Appendix Cost ratios: First six months 2024 | Total revenue: €16.3bn Non-IFRS as percent of total revenue Research & Sales & General development marketing administration 20.0% €3.3bn 26.7% €4.4bn 4.2% €0.7bn -0.9pp | -0.9pp @cc -1.0pp | -1.1pp
Slide 22: Balance sheet condensed: June 30, 2024 – IFRS
Second Quarter 2024 Results Presentation | July 22, 2024 Appendix Balance sheet condensed: June 30, 2024 – IFRS Due to rounding, numbers may not add up precisely Assets Equity and liabilities € millions 06/30/24 12/31/23 € millions 06/30/24 12/31/23 Cash, cash equivalents and other financial assets
Slide 23: Cash flow development
Second Quarter 2024 Results Presentation | July 22, 2024 Appendix Cash flow development Due to rounding, numbers may not add up precisely € millions, unless otherwise stated HY1 24 HY1 23 ∆ in % Operating cash flow 4,297 3,160 36 – Capital expenditure -365 -413 -12 – Payments of lease liabilities -1
Slide 24: Net debt
Second Quarter 2024 Results Presentation | July 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 4,297 3,160 Capital expenditure -36
Slide 25: Additional outlook information and Non-IFRS adjustments
Second Quarter 2024 Results Presentation | July 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 26: Expected currency impact
Second Quarter 2024 Results Presentation | July 22, 2024 Appendix Expected currency impact Expected currency impact based on June 2024 Level applied for 2024 in percentage points Q3 24 FY 24 Cloud revenue growth +0.5pp -0.5pp Cloud and software revenue growth +0.5pp -0.5pp Operating profit growth (n