Sap Se · XETR:SAP
Sap — Q4 2023 Earnings Presentation
29 slides from Sap's earnings presentation, Jan 23, 2024
Slide 1: Fourth Quarter and Full-Year 2023 Results
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Fourth Quarter and Full-Year 2023 Results Christian Klein, CEO Dominik Asam, CFO 2024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 2: Safe Harbor Statement
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 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,
Slide 3: Christian Klein, CEO
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Christian Klein CEO 2024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 4: We accelerated profitable growth in Q4
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Q4 2023 FY 2023 Outlook, Ambition & Transformation We accelerated profitable growth in Q4 Cloud Revenue in €millions (yoy @cc) Current Cloud Cloud Revenue Cloud Gross Profit in €millions (yoy @cc) Thereof S/4HANA Backlog 3,699
Slide 5: Q4 2023 | FY 2023 | Outlook, Ambition & Transformation
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Q4 2023 FY 2023 Outlook, Ambition & Transformation 2024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 6: We met or exceeded our outlook for 2023 in all key metrics
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Q4 2023 FY 2023 Outlook, Ambition & Transformation We met or exceeded our outlook for 2023 in all key metrics Total Cloud Cloud Revenue Thereof S/4HANA Backlog 13,664 3,495 €13.7bn ▲ +20% (+23% @cc) ▲ +67% (+72% @cc) 44,254 Sa
Slide 7: We're laying the basis for sustained, rapid growth beyond 2025
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Q4 2023 FY 2023 Outlook, Ambition & Transformation We’re laying the basis for sustained, rapid growth beyond 2025 setting clear priorities to reach our revenue growth ambitions Aiming to Illustrative accelerate Numbers in €bn
Slide 8: We see an opportunity to accelerate profitability
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Q4 2023 FY 2023 Outlook, Ambition & Transformation We see an opportunity to accelerate profitability increasing focus with a dedicated transformation program Illustrative Transformation program Numbers in €bn set up to drive:
Slide 9: We kept our promise for 2023
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Q4 2023 FY 2023 Outlook, Ambition & Transformation We kept our promise for 2023 Achievement Confirmation Upgrade and aim to accelerate growth through 2027 Aiming to accelerate through 2027 Illustrative Numbers in €bn Continuin
Slide 10: Dominik Asam, CFO
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Dominik Asam CFO 2024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 11: All outlook key metrics met or exceeded for FY 2023
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Financial Highlights Regional Performance Gross Profit Development Tax Rate, EPS & Cash Flow Outlook Non-Financial Performance All outlook key metrics met or exceeded for FY 2023 Cloud revenue Cloud & software Operating profit
Slide 12: Regional cloud revenue performance
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Financial Highlights Regional Performance Gross Profit Development Tax Rate, EPS & Cash Flow Outlook Non-Financial Performance Regional cloud revenue performance AMERICAS EMEA APJ Cloud revenue Cloud revenue Cloud revenue perc
Slide 13: Gross profit development
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Financial Highlights Regional Performance Gross Profit Development Tax Rate, EPS & Cash Flow Outlook Non-Financial Performance Gross profit development . Revenue Gross Profit (Gross margin %) Non-IFRS in € millions, unless oth
Slide 14: Tax rate, EPS & Cash flow
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Financial Highlights Regional Performance Gross Profit Development Tax Rate, EPS & Cash Flow Outlook Non-Financial Performance Tax rate, EPS & Cash flow Effective tax rate Earnings per share Cash flow Full year | percent Full
Slide 15: 2024 Financial outlook and Non-financial outlook
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Financial Highlights Regional Performance Gross Profit Development Tax Rate, EPS & Cash Flow Outlook Non-Financial Performance 2024 Financial outlook1 2024 Non-financial in € billions, unless otherwise stated; continuing opera
Slide 16: Non-financial performance 2023
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Financial Highlights Regional Performance Gross Profit Development Tax Rate, EPS & Cash Flow Outlook Non-Financial Performance Non-financial performance 2023 SAP continuing operations excl. Qualtrics Customer Net Promoter Empl
Slide 17: Q&A
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Q&A 2024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 18: Appendix
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Appendix 2024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Slide 19: SAP Q4 2023 Financial Results
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Appendix SAP Q4 2023 Financial Results in € millions, unless otherwise stated Total revenue Cloud & Software Cloud revenue S/4HANA Cloud revenue revenue 8,468 7,386 3,699 1,028 ▲ +5% (+9% @cc) ▲ +6% (+10% @cc) ▲ +20% (+25% @cc
Slide 20: Income statement: Fourth quarter 2023
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Appendix Income statement: Fourth quarter 2023 IFRS Non-IFRS € millions, unless otherwise stated Q4 23 Q4 22 ∆% Q4 23 Q4 22 ∆% ∆ % @cc Cloud 3,699 3,078 20 3,699 3,078 20 25 Software licenses 841 907 -7 841 907 -7 -6 Software
Slide 21: Income statement: Full year 2023
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Appendix Income statement: Full year 2023 IFRS Non-IFRS € millions, unless otherwise stated FY 23 FY 22 ∆% FY 23 FY 22 ∆% ∆ % @cc Cloud 13,664 11,426 20 13,664 11,426 20 23 Software licenses 1,767 2,056 -14 1,767 2,056 -14 -12
Slide 22: Gross margin development
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Appendix Gross margin development Non-IFRS, in percent as reported FY 22 Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Cloud 70.3 73.7 72.6 71.4 72.2 72.8 SaaS 72.1 74.0 72.7 71.5 72.5 72.9 PaaS 80.9 84.8 84.3 83.9 84.7 85.8 IaaS 35.2 38.4 35
Slide 23: Cost ratios: Fourth quarter 2023
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Appendix Cost ratios: Fourth quarter 2023 €8.5bn Total revenue R&D S&M G&A as % of total revenue as % of total revenue as % of total revenue €1.5bn €2.0bn €0.3bn 17.7% 23.7% 3.7% -0.3pp +0.8pp +0.0pp -0.4pp* +1.0pp* -0.0pp* Al
Slide 24: Cost ratios: Full year 2023
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Appendix Cost ratios: Full year 2023 €31.2bn Total revenue R&D S&M G&A as % of total revenue as % of total revenue as % of total revenue €5.6bn €7.6bn €1.2bn 18.0% 24.3% 3.8% -1.1pp +0.1pp -0.1pp -1.2pp* +0.0pp* -0.1pp* All nu
Slide 25: Balance sheet condensed: December 31, 2023 – IFRS
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Appendix Balance sheet condensed: December 31, 2023 – IFRS Assets Equity and liabilities € millions 12/31/23 12/31/22 € millions 12/31/23 12/31/22 Cash, cash equivalents and other financial assets 8,124 9,008 Trade and other p
Slide 26: Cash flow development
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Appendix Cash flow development € millions, unless otherwise stated FY/23 FY/22 ∆ in % Operating cash flow 6,193 5,675 9 – Capital expenditure –785 –877 -11 – Payments of lease liabilities –325 –410 -21 Free cash flow 5,083 4,3
Slide 27: Net debt
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Appendix Net debt € millions, unless otherwise stated 2023 2022 Net Debt | 12/31/2022 | PY: 12/31/2021 –2,070 –1,563 Operating cash flow 6,193 5,675 Capital expenditure –785 –877 Payments of lease liabilities –325 –410 Busines
Slide 28: Additional outlook information and Non-IFRS adjustments
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Appendix Additional outlook information and Non-IFRS adjustments The Company expects a full-year 2024 effective tax rate (non-IFRS) of around 32% (2023:30.3%) based on updated tax rate definition (non-IFRS). Actual Amounts Act
Slide 29: Expected currency impact 2024
Fourth Quarter and Full-Year 2023 Results Presentation | January 24, 2024 Appendix Expected currency impact 2024 Expected Currency Impact Based on December 2023 Level Applied for 2024 in percentage points Q1 24 FY 24 Cloud revenue growth –2.5pp to –0.5pp –2.0pp to 0.0pp Cloud and software revenue gr