Slide 1: Second Quarter 2022 Results
Second Quarter 2022 Results Presentation | July 21, 2022 Second Quarter 2022 Results Christian Klein, CEO Luka Mucic, CFO 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 2: Safe Harbor Statement
Second Quarter 2022 Results Presentation | July 21, 2022 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
Second Quarter 2022 Results Presentation | July 21, 2022 Christian Klein CEO 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 4: Strong Cloud Performance in Q2 2022
Second Quarter 2022 Results Presentation | July 21, 2022 Cloud Momentum Our Strategy Customer Highlights Strong Cloud Performance in Q2 2022 continuing cloud acceleration 10,403 Current Cloud Cloud Revenue +25% Thereof S/4HANA 9,731 9,447 Backlog 3,056 472 (+26%) (+23%) ▲ +34% (+24% @cc) ▲ +84% (+72
Slide 5: On track to execute our strategy
Second Quarter 2022 Results Presentation | July 21, 2022 Cloud Momentum Our Strategy Customer Highlights On track to execute our strategy Initiated ERP Scaling as Delivering Entered new Reaccelerated transition a platform growth across innovative cloud revenue to the cloud company cloud LoBs growth
Slide 6: Relentless focus on customer value
Second Quarter 2022 Results Presentation | July 21, 2022 Cloud Momentum Our Strategy Customer Highlights Relentless focus on customer value SAP S/4HANA Customers End of Q2 2022 ~20,000 ▲ SAP S/4HANA Cloud Customers End of Q2 2022 ~6,000 ▲ SAP S/4HANA Cloud Net New Customers Q2 >60% ▲ Net new custome
Slide 7: We keep the promise
Second Quarter 2022 Results Presentation | July 21, 2022 Cloud Momentum Our Strategy Customer Highlights We keep the promise Total revenue and operating profit Growth to accelerate as cloud transition reaches inflection in 2023 >€36bn [7% CAGR 2021-25] Total revenue €27.3bn €27.8bn >€22bn [24% CAGR
Slide 8: Luka Mucic, CFO
Second Quarter 2022 Results Presentation | July 21, 2022 Luka Mucic CFO 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 9: SAP Q2 2022 Financial Results
Second Quarter 2022 Results Presentation | July 21, 2022 Financial Highlights Regional Performance Gross Margin Development Tax Rate, EPS & Cash Flow Outlook and Ambition SAP Q2 2022 Financial Results in € millions, unless otherwise stated Total revenue Cloud & Software Cloud revenue S/4HANA cloud r
Slide 10: Strong cloud revenue performance across all regions
Second Quarter 2022 Results Presentation | July 21, 2022 Financial Highlights Regional Performance Gross Margin Development Tax Rate, EPS & Cash Flow Outlook and Ambition Strong cloud revenue performance across all regions AMERICAS EMEA APJ Cloud revenue Cloud revenue Cloud revenue € millions € mill
Slide 11: Gross Margin Development
Second Quarter 2022 Results Presentation | July 21, 2022 Financial Highlights Regional Performance Gross Margin Development Tax Rate, EPS & Cash Flow Outlook and Ambition Gross Margin Development in € millions, unless otherwise stated . Revenue Gross Margin % (Gross profit) Non-IFRS Q2/22 ∆ in % ∆ i
Slide 12: Tax rate, EPS & Cash flow
Second Quarter 2022 Results Presentation | July 21, 2022 Financial Highlights Regional Performance Gross Margin Development Tax Rate, EPS & Cash Flow Outlook and Ambition Tax rate, EPS & Cash flow Effective tax rate Earnings per share Cash flow Second quarter | percent Second quarter | €S Non-IFRS H
Slide 13: Business Outlook 2022
Second Quarter 2022 Results Presentation | July 21, 2022 Financial Highlights Regional Performance Gross Margin Development Tax Rate, EPS & Cash Flow Outlook and Ambition Business Outlook 2022 in € billions, unless otherwise stated FY 2022 Non-Financial FY 2022 Guidance Outlook Cloud Cloud & Operati
Slide 14: Q&A
Second Quarter 2022 Results Presentation | July 21, 2022 Q&A 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 15: Appendix
Second Quarter 2022 Results Presentation | July 21, 2022 Appendix 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 16: Income statement: Second quarter 2022
Second Quarter 2022 Results Presentation | July 21, 2022 Appendix Income statement: Second quarter 2022 IFRS Non-IFRS € millions, unless otherwise stated Q2/22 Q2/21 ∆% Q2/22 Q2/21 ∆ % ∆ % at cc Cloud 3,056 2,276 34 3,056 2,276 34 24 Software licenses 426 650 -34 426 650 -34 -38 Software support 2,9
Slide 17: Income statement: First six months 2022
Second Quarter 2022 Results Presentation | July 21, 2022 Appendix Income statement: First six months 2022 IFRS Non-IFRS € millions, unless otherwise stated Q1-Q2/22 Q1-Q2/21 ∆% Q1-Q2/22 Q1-Q2/21 ∆ % ∆ % at cc Cloud 5,876 4,421 33 5,876 4,421 33 25 Software licenses 743 1,133 -34 743 1,133 -34 -38 So
Slide 18: Gross margin development
Second Quarter 2022 Results Presentation | July 21, 2022 Appendix Gross margin development Non-IFRS, in percent as reported FY/20 Q1/21 Q2/21 Q3/21 Q4/21 FY/21 Q1/22 Q2/22 Cloud 69.7 69.5 70.0 69.4 69.0 69.5 70.0 71.9 69.4 69.0 SaaS 72.8 72.6 72.5 72.6 72.4 72.3 73.3 75.2 69.4 69.0 PaaS 81.1 80.0 80
Slide 19: Cost ratios: Second quarter 2022
Second Quarter 2022 Results Presentation | July 21, 2022 Appendix Cost ratios: Second quarter 2022 €7.5bn Total revenue R&D S&M G&A as % of total revenue as % of total revenue as % of total revenue €0.3bn €1.4bn €2.0bn 18.1% 27.0% 4.3% +0.9pp +4.0pp +0.0pp +1.0pp* +3.6pp* +0.1pp* All numbers are Non
Slide 20: Cost ratios: First six months 2022
Second Quarter 2022 Results Presentation | July 21, 2022 Appendix Cost ratios: First six months 2022 €14.6bn Total revenue R&D S&M G&A as % of total revenue as % of total revenue as % of total revenue €0.6bn €2.7bn €3.8bn 18.4% 26.1% 4.2% +1.3pp +3.0pp -0.2pp +1.4pp* +2.7pp* -0.2pp* All numbers are
Slide 21: Balance sheet condensed: June 30, 2022 – IFRS
Second Quarter 2022 Results Presentation | July 21, 2022 Appendix Balance sheet condensed: June 30, 2022 – IFRS Assets Equity and liabilities € millions 06/30/22 12/31/21 € millions 06/30/22 12/31/21 Cash, cash equivalents and other financial assets 8,479 11,656 Trade and other payables 1,939 1,580
Slide 22: Cash flow development
Second Quarter 2022 Results Presentation | July 21, 2022 Appendix Cash flow development € millions, unless otherwise stated HY1/22 HY1/21 ∆ Operating cash flow 2,750 3,771 -27% – Capital expenditure -456 -344 +33% – Payments of lease liabilities -215 -176 +22% Free cash flow 2,079 3,251 -36% Free ca
Slide 23: Net debt
Second Quarter 2022 Results Presentation | July 21, 2022 Appendix Net debt € millions +2,750 –456 –215 –627 –1,563 –2,865 –1,000 –49 –4.026 Free Cash Flow +2,079 Net Operating Capital Lease Business Dividends Treasury Other Net Debt Cash Expen- Payments Combi- Shares Debt 12/31/2021 Flow diture nati
Slide 24: Additional outlook information and Non-IFRS adjustments
Second Quarter 2022 Results Presentation | July 21, 2022 Appendix Additional outlook information and Non-IFRS adjustments The Company now expects a full-year 2022 effective tax rate (IFRS) of 34.0% to 38.0% (2021: 21.5%) and an effective tax rate (non-IFRS) of 23.0% to 27.0% (2021: 20.0%). Actual Am
Slide 25: Expected currency impact 2022
Second Quarter 2022 Results Presentation | July 21, 2022 Appendix Expected currency impact 2022 Expected Currency Impact Based on June 2022 Level for the Rest of the Year in percentage points Q3 2022 FY 2022 Cloud revenue growth +8pp to +10pp +7pp to +9pp Cloud and software revenue growth +5pp to +7
Slide 26: SAP S/4HANA customer count
Second Quarter 2022 Results Presentation | July 21, 2022 Appendix SAP S/4HANA customer count ~20,000 >19,300 >18,800 >17,000>17,500 >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 Q3/1
Slide 27: Key cloud metrics: Second quarter 2022
Second Quarter 2022 Results Presentation | July 21, 2022 Appendix Key cloud metrics: Second quarter 2022 All figures are Non-IFRS and growth rates at constant currencies unless otherwise stated Cloud revenue S/4HANA Cloud Current cloud S/4HANA Current Qualtrics revenue2 backlog1 cloud backlog2 Total