Slide 1: Third Quarter 2024 Results
Third Quarter 2024 Results Christian Klein, CEO Dominik Asam, CFO October 21, 2024 Public
Slide 2: Safe Harbor Statement
Third Quarter 2024 Results Presentation | October 21, 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 assumption
Slide 3: Christian Klein, CEO
Chr CEO
Slide 4: We’re ahead of our plans for 2024
Third Quarter 2024 Results Presentation | October 21, 2024 We’re ahead of our plans for 2024 Cloud revenue in € millions (yoy @cc) Current cloud Cloud gross profit in € millions (yoy @cc) backlog € millions 15,377 ▲ +25% (+29% @cc) Cloud revenue 3,209 € millions 3,043 (+28%) 4,351 2,849 (+29%) ▲ +25
Slide 5: Dominik Asam, CFO
Third Quarter 2024 Results Presentation | October 21, 2024 2024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5
Slide 6: Our progress in Business AI is accelerating
Third Quarter 2024 Results Presentation | October 21, 2024 Our progress in Business AI is accelerating 1 Joule 500+ Joule Collaborative AI agent skills added A copilot that truly understands your business experience across our so far portfolio Embedded AI capabilities Your customized AI application
Slide 7: SAP Knowledge Graph connects language & data allowing GenAI to understand SAP systems
Third Quarter 2024 Results Presentation | October 21, 2024 SAP Knowledge Graph connects language & data allowing GenAI to deeply understand SAP systems SAP Natural language SAP tabular data Knowledge Graph 2024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7
Slide 8: We’re raising our outlook for 2024
Third Quarter 2024 Results Presentation | October 21, 2024 We’re raising our outlook for 2024 Illustrative | Numbers in €bn | Continuing operations Aiming to accelerate Confirmation Upgrade through 2027 >37.5 10% CAGR [23-25] 31.2 29.5 27.0 Total revenue >21.5 25% CAGR [23-25] 17.0 – 17.3 8.7 11.4 1
Slide 9: Slide 9
Slide 10: SAP Q3 2024 Financial Results
Third Quarter 2024 Results Presentation | October 21, 2024 SAP Q3 2024 Financial Results Current cloud Total revenue Cloud & software Cloud revenue Cloud ERP Suite backlog revenue revenue € millions € millions € millions € millions € millions 15,377 8,470 7,429 4,351 3,636 ▲ +25% (+29% @cc) ▲ +9% (+
Slide 11: Regional revenue performance
Third Quarter 2024 Results Presentation | October 21, 2024 Regional revenue performance AMERICAS EMEA APJ Cloud revenue Cloud revenue Cloud revenue ▲ +19% ▲ +29% ▲ +40% (+21% @cc) (+29% @cc) (+43% @cc) Cloud & software Cloud & software Cloud & software revenue revenue revenue ▲ +11% ▲ +12% ▲ +11% (+
Slide 12: Revenue and gross profit development
Third Quarter 2024 Results Presentation | October 21, 2024 Revenue and gross profit development . Revenue Gross Profit (Gross margin %) Non-IFRS in € millions, unless otherwise stated Q3 2024 ∆ in % ∆ in % @cc Q3 2024 ∆ in % ∆ in % @cc Cloud 4,351 25 27 3,209 27 28 (73.7) SaaS/PaaS 4,234 29 30 IaaS
Slide 13: Tax rate, Cash flow, and Earnings per share
Third Quarter 2024 Results Presentation | October 21, 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 33.0 33.4 1.25 1.25 1.24 1.23 ▲ +5.3pp ▲ +6.3pp ▲ +44% ▲ +15% ▲ +15% ▲
Slide 14: 2024 Financial outlook and Non-financial outlook
Third Quarter 2024 Results Presentation | October 21, 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 29.5 – 29.8 70 – 74 9 – 13 ▲ +24% – 27% (
Slide 15: Q&A
Third Quarter 2024 Results Presentation | October 21, 2024 Q&A 2024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 15
Slide 16: Appendix
Third Quarter 2024 Results Presentation | October 21, 2024 Appendix 2024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 16
Slide 17: Income statement: Third quarter 2024
Third Quarter 2024 Results Presentation | October 21, 2024 Appendix Income statement: Third quarter 2024 * from continuing and discontinued operations IFRS Non-IFRS € millions, unless otherwise stated Q3 24 Q3 23 ∆% Q3 24 Q3 23 ∆% ∆ % @cc Cloud 4,351 3,472 25 4,351 3,472 25 27 Software licenses 285
Slide 18: Income statement: First nine months 2024
Third Quarter 2024 Results Presentation | October 21, 2024 Appendix Income statement: First nine months 2024 * from continuing and discontinued operations IFRS Non-IFRS € millions, unless otherwise stated Q1-Q3 24 Q1-Q3 23 ∆% Q1-Q3 24 Q1-Q3 23 ∆% ∆ % @cc Cloud 12,433 9,965 25 12,433 9,965 25 26 Soft
Slide 19: Gross margin development
Third Quarter 2024 Results Presentation | October 21, 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 Q3 24 Cloud 70.8 71.4 73.0 72.2 71.9 72.5 73.3 73.7 Software licenses & support 88.9 90.2 90.1 89.8 89.8 89.2 89.7 90.1 Cloud & soft
Slide 20: Cost ratios: Third quarter 2024
Third Quarter 2024 Results Presentation | October 21, 2024 Appendix Cost ratios: Third quarter 2024 | Total revenue: €8.5bn Non-IFRS as percent of total revenue Research & Sales & General development marketing administration 18.5% €1.6bn 24.2% €2.0bn 4.2% €0.4bn -1.0pp | -1.0pp @cc -2.2pp | -2.1pp @
Slide 21: Cost ratios: First nine months 2024
Third Quarter 2024 Results Presentation | October 21, 2024 Appendix Cost ratios: First nine months 2024 | Total revenue: €24.8bn Non-IFRS as percent of total revenue Research & Sales & General development marketing administration 19.5% €4.8bn 25.9% €6.4bn 4.2% €1.0bn -0.9pp | -1.0pp @cc -1.4pp | -1.
Slide 22: Balance sheet condensed: September 30, 2024 – IFRS
Third Quarter 2024 Results Presentation | October 21, 2024 Appendix Balance sheet condensed: September 30, 2024 – IFRS Due to rounding, numbers may not add up precisely Assets Equity and liabilities € millions 09/30/24 12/31/23 € millions 09/30/24 12/31/23 Cash, cash equivalents and other financial
Slide 23: Cash flow development
Third Quarter 2024 Results Presentation | October 21, 2024 Appendix Cash flow development Due to rounding, numbers may not add up precisely € millions, unless otherwise stated 9M 24 9M 23 ∆ in % Operating cash flow 5,772 4,284 35 – Capital expenditure -528 -595 -11 – Payments of lease liabilities -2
Slide 24: Net debt
Third Quarter 2024 Results Presentation | October 21, 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 5,772 4,284 Capital expenditure -
Slide 25: Additional outlook information and Non-IFRS adjustments
Third Quarter 2024 Results Presentation | October 21, 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%). Actual Amounts Actual Amounts
Slide 26: Expected currency impact
Third Quarter 2024 Results Presentation | October 21, 2024 Appendix Expected currency impact Expected currency impact based on September 30, 2024 Level applied for 2024 in percentage points Q4 24 FY 24 Cloud revenue growth -3.0pp -1.0pp Cloud and software revenue growth -2.0pp -1.0pp Operating profi