Slide 1: Second-Quarter and Half-Year 2021 Results Presentation
Second-Quarter and Half-Year 2021 Results Presentation Christian Klein Luka Mucic CEO CFO PUBLIC
Slide 2: Stefan Gruber, Head of Investor Relations
Stefan Gruber Head of Investor Relations
Slide 3: Safe Harbor Statement
Safe Harbor Statement Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “pro
Slide 4: Christian Klein, CEO
Christian Klein CEO
Slide 5: Continued Strong Growth in the Cloud
Continued Strong Growth in the Cloud Current Cloud Backlog growth further accelerates to 20% All figures in € millions Current Cloud Backlog Cloud Revenue Non-IFRS IFRS Non-IFRS 7,766 +20% @cc 2,276 +11% 2,276 +17% @cc SaaS/PaaS excl. Intelligent Spend SaaS/PaaS Intelligent Spend IaaS IFRS Non-IFRS
Slide 6: Q2 customer highlights
Q2 customer highlights Relentless focus on customer value Q2 Competitive Wins / Go-lives Customer metrics >9,000 Net new customers >5,200 Go-lives >17,000 (+16%) S/4HANA Customers Net new customers include customers with an active contract that did not have an active contract in the preceding period
Slide 7: Accelerated move of our ERP to the cloud
Accelerated move of our ERP to the cloud RISE with SAP modular offering with further expansion over time IDC Public Cloud ERM S/4HANA Cloud Market Share in % Enterprise Digital Supply 12,3% Management + Finance + Chain 11,9% Current Cloud Backlog Cloud Revenue 9,7% in € millions in € millions 9,1% 8
Slide 8: Our vision is clear
Our vision is clear Reinvent how the world runs as a network of intelligent, sustainable enterprises Reinvent how the World runs Reinvent how Industries run Reinvent how Enterprises run © 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8
Slide 9: Luka Mucic, CFO
Luka Mucic CFO
Slide 10: SAP accelerates cloud growth across portfolio
SAP accelerates cloud growth across portfolio Financial highlights Cloud and Software Cloud Revenue Total Revenue Operating Profit Revenue in € millions in € millions in € millions in € millions IFRS Non-IFRS IFRS Non-IFRS IFRS Non-IFRS IFRS Non-IFRS 2,276 2,276 5,750 5,750 6,669 6,669 984 1,922 +11
Slide 11: Regional revenue
Regional revenue Strong performance across all regions AMERICAS EMEA APJ Q2/21 Q2/21 Q2/21 Cloud Revenue Cloud Revenue Cloud Revenue +4% +22% +18% +12% cc +23% cc +23% cc Cloud and Software Revenue Cloud and Software Revenue Cloud and Software Revenue -3% +4% +2% +5% cc +5% cc +6% cc Brazil and Mexi
Slide 12: Gross margin development
Gross margin development Non-IFRS at constant currencies as reported FY/19 Q1/20 Q2/20 Q3/20 Q4/20 FY/20 Q1/21 Q2/21 Cloud 68.2 69,3 69,3 69,7 70,1 69.6 69,5 69,9 SaaS/PaaS – Intelligent Spend Group 78.1 78,7 79,7 78,3 78,9 78.9 79,1 80,1 SaaS/PaaS – Other 68.5 70,3 69,5 71,4 71,4 70.7 70,7 70,3 Iaa
Slide 13: Tax rate, EPS, Cash Flow & CapEx
Tax rate, EPS, Cash Flow & CapEx Effective Tax Rate (Q2) Decrease mainly resulted from tax effects related to changes in tax • IFRS: 19.7% | -13.4pp exempt income and a one-time change in deferred tax liabilities for taxable temporary differences associated with investments in subsidiaries • Non-IFR
Slide 14: Revenue and profit outlook raised
Revenue and profit outlook raised Updated outlook 2021 2020 Actuals (Non-IFRS) 2021 Outlook (Non-IFRS @cc) Cloud Revenue Cloud Revenue Operating Cash Flow €8.09bn in a range of €9.3 – 9.5bn [prev. €9.2 – 9.5bn] approx. €6.0bn Growth: 15% to 18% Cloud and Software Revenue Free Cash Flow €23.23bn Clou
Slide 15: Q&A
Q&A
Slide 16: Appendix
Appendix
Slide 17: Non-financial indicators
Non-financial indicators Updated outlook 2021 2020 Actuals 2021 Outlook Q2/21 Actuals Employee Engagement Employee Engagement Employee Retention 86% in a range of 84% to 86% 94.8% Customer Net Promoter Score Customer Net Promoter Score Women in Management 4 in a range of 5 to 10 27.9% Carbon Emissio
Slide 18: Income statement: Second quarter 2021
Income statement: Second quarter 2021 IFRS Non-IFRS € millions, unless otherwise stated Q2/21 Q2/20 ∆% Q2/21 Q2/20 ∆% ∆ % at cc Cloud 2,276 2,044 11 2,276 2,044 11 17 Software licenses 650 773 -16 650 773 -16 -13 Software support 2,823 2,892 -2 2,823 2,892 -2 1 Software licenses and support 3,474 3,
Slide 19: Income statement: First six months 2021
Income statement: First six months 2021 3 IFRS Non-IFRS € millions, unless otherwise stated H1/21 H1/20 ∆% H1/21 H1/20 ∆% ∆ % at cc Cloud 4,421 4,055 9 4,421 4,057 9 15 Software licenses 1,133 1,224 -7 1,133 1,224 -7 -4 Software support 5,624 5,826 -3 5,624 5,826 -3 0 Software licenses and support 6
Slide 20: Gross margin development
Gross margin development Non-IFRS, in percent as reported FY/18 Q1/19 Q2/19 Q3/19 Q4/19 FY/19 Q1/20 Q2/20 Q3/20 Q4/20 FY/20 Q1/21 Q2/21 Cloud 63.1 69,0 69,5 68.2 69.7 69,6 70,0 66,2 67,9 69,3 69,5 69,7 70,3 SaaS/PaaS – 77.8 78,0 78,1 78,0 78,0 78.1 78,8 79,9 78,3 79,1 78.9 78,7 80,0 Intelligent Spen
Slide 21: Operating profit: Second quarter 2021
Operating profit: Second quarter 2021 IFRS Total operating expenses | Operating profit (loss) Total revenue • IFRS operating profit (loss) -23% to €984m (Q2/20: €1,284m) Q2/20 5,459 1,284 €6,743m • IFRS operating margin -4.3pp to 14.8% (Q2/20: 19.0%) Q2/21 5,685 984 €6,669m Non-IFRS Total operating
Slide 22: Operating profit: First six months 2021
Operating profit: First six months 2021 IFRS Total operating expenses | Operating profit (loss) Total revenue • IFRS operating profit (loss) -22% to €1,944m (HY1/20: €2,494m) HY1/20 10,770 2,494 €13,264m • IFRS operating margin -3.9pp to 14.9% (HY1/20: 18.8%) HY1/21 11,073 1,944 €13,017m Non-IFRS To
Slide 23: Cost ratios: Second quarter 2021
Cost ratios: Second quarter 2021 €6.7bn Total revenue, Non-IFRS R&D S&M G&A as % of total revenue as % of total revenue as % of total revenue €0.3bn €1.1bn €1.5bn 17.2% 23.0% 4.3% +2.1pp -0.3pp -0.3pp +1.9pp* -0.2pp* -0.3pp* *Non-IFRS at constant currencies © 2021 SAP SE or an SAP affiliate company.
Slide 24: Cost ratios: First six months 2021
Cost ratios: First six months 2021 €13.0bn Total revenue, Non-IFRS R&D S&M G&A as % of total revenue as % of total revenue as % of total revenue €0.6bn €2.2bn €3.0bn 17.1% 23.1% 4.4% +1.7pp -1.7pp -0.2pp +1.5pp* -1.6pp* -0.3pp* *Non-IFRS at constant currencies © 2021 SAP SE or an SAP affiliate compa
Slide 25: Balance sheet condensed: June 30, 2021 – IFRS
Balance sheet condensed: June 30, 2021 – IFRS Assets Equity and liabilities € millions 6/30/21 12/31/20 € millions 6/30/21 12/31/20 Cash, cash equivalents and other financial assets 7,764 5,311 Trade and other payables 1,076 1,213 Provisions 86 73 Trade and other receivables 5,617 6,593 Other liabil
Slide 26: Cash flow development
Cash flow development € millions, unless otherwise stated HY1/21 HY1/20 ∆ Operating cash flow 3,771 3,772 -0% - Capital expenditure -344 -497 -31% - Payments of lease liabilities -176 -156 +13% Free cash flow 3,251 3,119 +4% Free cash flow in percent of total revenue 25 24 +1pp Free cash flow conver
Slide 27: Net debt
Net debt € millions +3,771 +12 –344 +1,847 –176 –992 –4.568 –2,182 –6,503 Free Cash Flow +3,251 Net Operating Capital Lease Business Dividends Proceeds from IPO Other Net Debt Cash Expen- Payments Combi- Debt 12/31/2020 Flow diture nations 6/30/2021 PY: –8,286 +3,772 –497 –156 –47 –1,864 –0 –377 –7,
Slide 28: Additional outlook information and Non-IFRS adjustments
Additional outlook information and Non-IFRS adjustments The Company now expects a full-year 2021 effective tax rate (IFRS) of 21.5% to 23.0% (previously: 26.0% to 27.0%) and an effective tax rate (non-IFRS) of 20.0% to 21.5% (previously: 22.5% to 23.5%). Actual Amounts Actual Amounts Est. Amounts No
Slide 29: Expected currency impact 2021
Expected currency impact 2021 Expected Currency Impact Based on June 2021 Level for the Rest of the Year (Non-IFRS) in percentage points Q3 FY Cloud revenue growth -3pp to -1pp -5pp to -3pp Cloud and software revenue growth -2pp to 0pp -4pp to -2pp Operating profit growth -3pp to -1pp -4pp to -2pp ©
Slide 30: SAP S/4HANA customer count
SAP S/4HANA customer count >17,000 >16,400 >16,000 >15,100 >14,600 >13,800~14,100 >12,600 >12,000 >11,100~11,500 >10,000 >9,500 >8,500 ~8,900 ~7,500 >6,900 ~6,400 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 © 2021 SAP SE or an SAP affil
Slide 31: Key cloud metrics: Second quarter 2021
Key cloud metrics: Second quarter 2021 All figures are Non-IFRS and growth rates at constant currencies unless otherwise stated Cloud Revenue S/4HANA Current Cloud Backlog1 Cloud Revenue2 +17% +20% +39% €2,276m €7,766m €257m S/4HANA Qualtrics – Current Cloud Backlog2 Total Segment Revenue +48% +37%