Sap Se · XETR:SAP
Sap — SAP Sapphire Financial Analyst Conference 2025
68 slides from Sap's conference presentation, May 21, 2025
Slide 1: Financial Analyst Conference
SAP Sapphire Financial Analyst Conference May 21st, 2025
Slide 2: Opening Remarks
SAP Sapphire Opening Remarks Alexandra Steiger Global Head of Investors Relations
Slide 3: Agenda
Agenda Opening Remarks Alexandra Steiger, Global Head of Investors Relations Vision & Strategy Christian Klein, Chief Executive Officer Product Innovation Muhammad Alam, Executive Board Member Product & Engineering Simplify SAP Sebastian Steinhaeuser, Chief Operating Officer Growth Culture Gina Varg
Slide 4: Safe Harbor Statement
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 that are subject to risks and uncertainties that could ca
Slide 5: Vision & Strategy
Vision & Strategy Christian Klein Chief Executive Officer
Slide 6: Our strategy is delivering results
Our strategy is delivering results Since 2020, we’ve continuously evolved our strategy and focused on execution Next era of enterprise management Apps + Data + AI 2025 Strategy Evolution Customer NPS 2024 +12 +16pp (since 2020) Leading in Business AI Launched 2024 Unlocked GROW 2023 New Growth Cloud
Slide 7: Accelerating growth
Growth Formula Accelerating growth through 2027 Product innovation x Go-to-market x Simplification x People transformation = Reinventing how Accelerating our Setting SAP up for Hiring and upskilling Accelerating businesses run with data and AI customers’ journey to the Business Suite scaling efficie
Slide 8: Product innovation
Product innovation x GTM transformation x Simplification x People = Accelerating growth through 2027 Product innovation Accelerating future growth by bringing together apps, data, and AI SAP Unrivaled 400+ Business AI Analytics agents AI AI Use-cases1 SAP Joule SAP Foundation Model CX agents Supply
Slide 9: SAP Business Suite
Product innovation x GTM transformation x Simplification x People = Accelerating growth through 2027 SAP Business Suite Bringing together applications, data, & AI to lead in the new era of enterprise management #1 Enterprise Applications Software Vendor*1 Strongest YoY cloud growth among top 10 Ente
Slide 10: Go-to-Market transformation
Product innovation x GTM transformation x Simplification x People = Accelerating growth through 2027 Go-to-Market transformation Dedicated journeys to the SAP Business Suite for our installed base and new customers Further diversifying our customer mix Cloud Revenue (new customers since 2020 vs. exi
Slide 11: SAP Installed Base
Product innovation x GTM transformation x Simplification x People = Accelerating growth through 2027 SAP Installed Base Massive, long-term growth potential in our installed base Installed base long-term revenue potential (illustrative ECC customer journey) 1 | Move customers with 2 | Convert from le
Slide 12: New SAP Customers
Product innovation x GTM transformation x Simplification x People = Accelerating growth through 2027 New SAP Customers Already €2bn annual cloud revenue with new customers – massive growth potential still ahead New long-term revenue potential New customer cohort cloud revenue trajectory 1 | Scale vi
Slide 13: Up- & Cross-sell for Installed Base and New Customers
Product innovation x GTM transformation x Simplification x People = Accelerating growth through 2027 Up- & Cross-sell for Installed Base and New Customers Positive up- & cross-sell trends to fuel our growth Upsell – Customers ramping up in the cloud Cross-sell – Customers adopting our portfolio Aver
Slide 14: Simplification
Product innovation x GTM transformation x Simplification x People = Accelerating growth through 2027 Simplification Unlocking triple-digit million AI-driven efficiencies across SAP Simplification Decoupling expense growth Research & from revenue growth Sales & Marketing Development General & Admin T
Slide 15: People
Product innovation x GTM transformation x Simplification x People = Accelerating growth through 2027 People Our transformation is accelerated through people Workforce transformation Collaboration with top universities globally1 (selected examples) ▪ AI ▪ Enterprise architects ▪ Data architects ▪ … T
Slide 16: Huge potential through 2027
Product innovation x GTM transformation x Simplification x People = Accelerating growth through 2027 Huge potential through 2027 The right pieces in place for accelerated Total Revenue growth and an expansion of Operating Profit through 2027 Total revenue growth 34.2 acceleration through 2027 31.2 2
Slide 17: Product Innovation
Product Innovation Muhammad Alam Executive Board Member, Product & Engineering
Slide 18: Businesses need agility and global interconnection
Businesses need agility and global interconnection Highly customized landscapes result in poor flexibility as businesses change PUBLIC 18
Slide 19: Businesses are facing unprecedented challenges
Businesses are facing unprecedented challenges Each challenge is unique, yet they all demand more intelligent and connected technology solutions to succeed CFO CPO COO CHRO CRO CIO Steering Optimizing cost, Running resilient Retaining and Meeting rising Delivering transformation by quality, availabi
Slide 20: Complexity of existing landscapes
Complexity of existing landscapes AI 1 AI 2 AI 3 AI 4 AI 5 1 2 3 4 5
Slide 21: Suite-as-a-Service in the age of AI
Suite-as-a-Service in the age of AI Enabling the flywheel of applications, data, and AI AI 1 AI 2 AI 3 AI 4 AI 5 1 2 3 4 5 Non-SAP Apps
Slide 22: The flywheel effect
The flywheel effect Safeguard your business with continuous innovation AI Data Apps PUBLIC 22
Slide 23: Realizing our vision by bringing together applications, data, and AI
Realizing our vision by bringing together applications, data, and AI We bring all components together to lead the way into the next era of enterprise management SAP SAP Business AI Unrivaled AI Business AI Analytics agents SAP Joule SAPFoundation SAP Joule Model AI embedded in business processes SAP
Slide 24: Unrivaled AI
Unparalleled applications | Unmatched data | Unrivaled AI Unrivaled AI By enhancing operations, driving real-time insights, & optimizing decision-making at scale powered by Agentic AI 34K+ cloud customers SAP Business AI 14% saved on project time1 SAP Joule for Consultants 250M+ lines of ABAP code J
Slide 25: Unmatched data
Unparalleled applications | Unmatched data | Unrivaled AI Unmatched data SAP Business Data Cloud €300bn+ Intelligent Applications Total Addressable Market by 2028 1, +16% CAGR Plan, Predict, and Take Action Business Data Fabric SAP Databricks 15k+ Data Products Cloud customers of Data & Analytics so
Slide 26: Business Data Cloud: Partner Ecosystem
Unparalleled applications | Unmatched data | Unrivaled AI Unmatched data SAP Business Data Cloud: Partner Ecosystem Intelligent applications Open data ecosystem PUBLIC 26
Slide 27: Unparalleled applications
Unparalleled applications | Unmatched data | Unrivaled AI Unparalleled applications Our in-depth knowledge of business processes and industries build a solid basis for E2E coverage differentiation Competitor Competitor Competitor Competitor Competitor Competitor A B C D E F 12 Cloud ERP/Business Sui
Slide 28: SAP Business Technology Platform
SAP Business Technology Platform The foundation for SAP Business Suite ~33K cloud customers live 3.2K+ partners use SAP BTP for application development and more App dev & automation Data and analytics Integration Artificial Intelligence Platform foundation 8.5K pre-built LoB content PUBLIC 28
Slide 29: Business Transformation Management
Business Transformation Management Our holistic approach to support our customers on a successful business transformation $2bn in potential value identified in 2024 | SAP Signavio SAP Enable Now People OP ZE E Y D E L R S A IG A AN TE N $1.3m Processes Applications in annualized benefits1 SAP LeanIX
Slide 30: Embark on the transformation
Embark on the transformation From monolithic landscape and on-premise to modular cloud SAP Business Suite Journey with Starting point Continuous innovation Monolithic SAP existing landscape Business Suite PUBLIC 30
Slide 31: Customer journeys to SAP Business Suite
Customer journeys to SAP Business Suite Different and accelerated pathways to become agile and future-ready on a global scale Simplifying, rationalizing, Becoming future-ready Build an IT infrastructure and standardizing and agile with: fit for global scale business processes with: and complexity wi
Slide 32: Elizabeth Hackenson, Schneider Electric
Elizabeth Hackenson CIO and SVP, Schneider Electric PUBLIC 32
Slide 33: Simplify SAP
Simplify SAP Sebastian Steinhaeuser Chief Operating Officer
Slide 34: Executing on SAP's Transformation
Executing on SAP’s Transformation Our ambition: Limit total operating expense growth to 80-90% of revenue growth Decoupling expense growth from revenue growth Sales & Marketing Research & Development General & Administration S&M ratio1 R&D ratio1 G&A ratio1 -1.1pp2 -0.2pp2 -1.2pp2 25.9% 27.0% 25.9%
Slide 35: Simplify SAP
Simplify SAP Holistic transformation program to drive profitable growth across all functions Simplification Sales & Marketing Research & Development General & Admin Master Cloud Customer Agreement 40 to 20 80% 100% Quote-to-cash >100k >50 streamlined of new customers of product develop- Simplificati
Slide 36: Sales & Marketing Simplification
S&M R&D G&A Sales & Marketing Simplification Business AI Governance Structurally changing our operating model for scalability and growth Sales & Marketing Cloud New & Upsell Customer-Facing Productivity Trend Cloud New & Upsell Cloud Bookings per Customer-Facing FTE1 ~ 60% productivity increase N&U
Slide 37: Sales & Marketing: 40 to 20, 14 to 0 approval cycles
S&M R&D G&A Sales & Marketing Simplification Business AI Governance Structurally changing our operating model for scalability and growth Sales & Marketing 01 02 03 04 05 Buying center Engagement Adoption Ecosystem Tools and setup model journeys setup automation Addressing key Improving sales Driving
Slide 38: Sales & Marketing: Deep Dives
S&M R&D G&A Sales & Marketing Simplification Business AI Governance Structurally changing our operating model for scalability and growth Sales & Marketing 01 Deep Dive 02 Deep Dive 03 04 05 Deep Dive Buying center Engagement Adoption Ecosystem Tools and setup model journeys setup automation Addressi
Slide 39: Simplified Buying Center Setup
S&M R&D G&A Deep Dive 01 | Simplified Buying Center Setup Business AI Governance Addressing key decision takers of our customers and unlocking cross-sell 8 Cross-sell Business AI Targeted packages for 5 buying centers Business Transformation Management 100% coverage of cross-sell incentives CFO CPO
Slide 40: Simplified Engagement Model
S&M R&D G&A Deep Dive 02 | Simplified Engagement Model Business AI Governance Improving sales productivity through clear customer segmentation, leaner account and role set-ups Customer on-premise to cloud move engagement models Enterprise customers 40 to 20 ~40% streamlined role-profiles of customer
Slide 41: Simplified GTM Tools & Automation
S&M R&D G&A Deep Dive 05 | Simplified GTM Tools & Automation Business AI Governance Driving standardization and hyper automation accelerating volume and value business Two-tier architecture 95% Auto-renewal Greenfield Leads Sales Delivery Invoicing Record-to-report runway >80% Partner no-touch order
Slide 42: Research & Development Simplification
S&M R&D G&A Research & Development Simplification Business AI Governance Increasing R&D productivity Research & Development Organizational Developer tool Cloud operations Tools and automation health and simplification consolidation Leveraging Joule for Developers to enhance accountability ABAP Devel
Slide 43: General & Administration Simplification
S&M R&D G&A General & Administration Simplification Business AI Governance Standardizing processes to operate at scale General & Administration Finance Operations Human Resources Tools and automation Advancing the quote-to- Consolidating support Elevating our employee’s Customer zero for Business Da
Slide 44: Business AI
S&M R&D G&A Business AI Business AI Governance Driving transformation leveraging our own technologies and solutions Business AI Triple-digit million contribution of AI-enabled efficiencies leveraging SAP technology1 Sales & Marketing Research & Development General & Administration Digital Sales Enga
Slide 45: Holistic Business Transformation Management
S&M R&D G&A Holistic Business Transformation Management Business AI Governance Stringent program governance in place, delivering 10x return on the IT investment taken SAP Enable Now E OP Z ER LY D ES A IG AT AN N E Data D T ES DI EN IG SC O M VE N E R PL IM SAP Business Data Cloud SAP Business Data
Slide 46: Growth Culture
Growth Culture Gina Vargiu-Breuer Chief People Officer and Labor Director PUBLIC 46
Slide 47: Confidential - Not for Public Consumption or Distribution
Confidential - Not for Public Consumption or Distribution
Slide 48: Our GROWTH behaviors drive our culture
Our GROWTH behaviors drive our culture We win We take We act with We embrace as one charge transparency curiosity Harness our collective capability across Take ownership of own actions and Communicate openly and constructively, Strive to get better every day with the organization to deliver winning
Slide 49: Our People Agenda
Our People Agenda Positioning SAP as a true pioneer in shaping intelligent enterprises People-centric work Skills-led people environment ecosystem fully skills-led 134 organization Employer of Choice Awards in 2024 by 2028 Game-changing Growth culture people technology ~10,000 50+ transformation acc
Slide 50: Skills-led people ecosystem
Skills-led people ecosystem Transforming SAP into a skills-led company by 2028 Infusing skills into all aspects of employee lifecycle State-of-the-art and externally benchmarked global skills Upskilling taxonomy – 1,500 future-ready skills as the basis for building a skills-led organization Creating
Slide 51: Game-changing people technology
Game-changing people technology Building efficiency and personalized experiences Simplification of HR Processes across SAP Employee Central Gen AI for assisted goal Joule digital assistant AI-Assisted Skills setting for SuccessFactors Matching for Candidate Resumes Centralizing people data to power
Slide 52: Scaling GROWTH Culture – SAP's competitive edge
Scaling GROWTH Culture – SAP’s competitive edge Mobilizing the entire organization to accelerate enterprise-wide transformation All Employees 1 Transformation Journeys Structured, multi-day team development journeys for our Executive Board and Senior Executives 2 Growth Summits Interactive two-day “
Slide 53: People remain key even in the age of AI
People remain key even in the age of AI Our People and Culture strategy is the foundation of our transformation Three main pillars Skills Culture People Technology Bring out the best in you. PUBLIC 53
Slide 54: Financial Update
Financial Update Dominik Asam Chief Financial Officer
Slide 55: A brief look back
A brief look back Keeping score on delivering Ambition 2025 Cloud Revenue Total Revenue >€22.0bn +€1.6 – 1.9bn €21.6 – 21.9bn >€36.0bn ~ +€3.7bn €37.4bn - €2.0bn - €2.3bn Original Ambition Qualtrics Outlook Original Ambition Qualtrics 2025 Update Update 20251 divestiture 2025 20251 divestiture Conse
Slide 56: SAP Financial Performance 2024
Revenue Growth x Operating Leverage x Cash Conversion SAP Financial Performance 2024 SBC Expenses FCF Revenue Growth Depreciation €5.2 bn1 (-15%) €4.2 bn1 Net working capital (-17%) OCF €8.2 bn (+26%) Net CapEx €17.1 bn Leasing OP (+26%) €34.2 bn €25.0 bn (+10%) (+11%) Restructuring & Compliance Clo
Slide 57: Evolving revenue mix
Evolving revenue mix Rapidly expanding share of Cloud ERP Suite supports total revenue growth Cloud Revenue (€bn) Total Revenue (€bn) 0.7x 0.5x 0.4x 4.8x 0.3x Ratio2 3.5x 2.6x 34.2 31.2 2.0x 21.6 – 21.9 29.5 Ratio1 27.0 17.1 13.7 -2% CAGR 11.4 Other revenue streams 8.7 Cloud ERP Suite Extension Suit
Slide 58: Cloud Transformation
Cloud Transformation Addressable support revenue base virtually unchanged vs. last year End of mainstream maintenance beyond 2027 End of mainstream maintenance by 2027 €11bn 2024 software support revenue Illustrative. All figures based on non-IFRS and continuing operations. PUBLIC 58
Slide 59: Cloud Transformation
Cloud Transformation Cloud revenue growth driven by upselling, cross-selling and new logos Cloud Revenue3 Support Revenue Upsells, Cross-sells, 4-year change New Logos 2–3x ~2x €17.1bn (lift & shift) Lift & shift €7.6bn 2020 2024 €11.5bn €11.3bn New Price Increase Churn Move Other 2020 Support1 to C
Slide 60: SAP Business Suite
SAP Business Suite Lots of runway ~$450bn Addressable cloud market 2025 17% Addressable cloud market growth 2025 – 2028 Winning cloud market share +1.4pp SCM +0.7pp HCM +0.8pp Fin. App. +0.2pp1 CRM Cross-Selling share of customers with 4+ SAP cloud solutions 9% in 2021 SAP Business Suite includes Cl
Slide 61: SAP Financial Performance 2024
Revenue Growth x Operating Leverage x Cash Conversion SAP Financial Performance 2024 SBC Expenses FCF Operating Depreciation €5.2 bn1 (-15%) €4.2 bn1 Leverage Net working capital (-17%) OCF €8.2 bn (+26%) Net CapEx €17.1 bn Leasing OP (+26%) €34.2 bn €25.0 bn (+10%) (+11%) Restructuring & Compliance
Slide 62: Operating leverage
Operating leverage Decoupling expense growth from revenue growth Stringent execution of transformation program Total operating expenses growth rate divided by total revenue growth rate Zero-based spend process established across all functions 156% >500 efficiency measures rigorously tracked Transfor
Slide 63: Go Hire an Agent
Go Hire an Agent PUBLIC 63
Slide 64: Gross margin and expense ratio development
Gross margin and expense ratio development Operating leverage supported by scale and efficiencies across SG&A and R&D Cost of Sales OpEx Efficiency gains to offset headwind from revenue mix Scale effects and efficiency benefits Cloud Gross Margin Sales & Marketing Ratio 25,9% 27,0% 25,9% 71,9% 73,3%
Slide 65: SAP Financial Performance 2024: Cash Conversion
Revenue Growth x Operating Leverage x Cash Conversion SAP Financial Performance 2024 SBC Expenses FCF €5.2 bn1 Depreciation (-15%) €4.2 bn1 Net working capital (-17%) OCF €8.2 bn (+26%) Net CapEx €17.1 bn Leasing OP (+26%) €34.2 bn €25.0 bn (+10%) (+11%) Restructuring & Compliance Cloud ERP Suite Ta
Slide 66: Cash conversion
Cash conversion Optimizing cash conversion and continued progress towards becoming a ‘Rule of 40’ company Cash Conversion Rule of 402 non-IFRS Operating Profit Free Cash Flow Free Cash Flow in % of non-IFRS Operating Profit Free Cash Flow Margin Total Revenue Growth 79% 77% 71% 40% 52% €10.45bn 25%
Slide 67: Use of Cash
Use of Cash Strong balance sheet and expanding liquidity ensure strategic flexibility Net liquidity (€bn) Buyback program Net debt (-) | Net liquidity (+) 4,6 €5.0bn -2,7 €1.4bn1 Non-Current -8.1 €3.6bn2 Current Financial debt -14.2 Q1 | 2021 Q1 | 2022 Q1 | 2023 Q1 | 2024 Q1 | 2025 2023–2025 Illustr
Slide 68: Resilience in a challenging environment
Resilience in a challenging environment Staying the course towards our mid-term goals Revenue Growth Sustained cloud momentum Total revenue growth acceleration 31.2 34.2 through 2027 x 29.5 27.0 Total revenue Operating Leverage Scale, automation, discipline 21.6 – 21.9 17.1 +26% to +28% Operating ma