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Fourth Quarter and Full-Year 2024 Results Christian Klein, CEO Dominik Asam, CFO January 28, 2025 Public
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2 Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 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 cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP’s 2023 Annual Report on Form 20-F.
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Christian Klein CEO
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42024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3,699 (+25%) 3,928 (+25%) 4,153 (+25%) 4,351 (+27%) 4,708 (+27%) 2,669 (+30%) 2,849 (+28%) 3,043 (+29%) 3,209 (+28%) 3,458 (+29%) Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Cloud revenue in € millions (yoy @cc) Cloud gross profit in € millions (yoy @cc) All numbers are in € millions, non-IFRS unless otherwise stated, SAP continuing operations excl. Qualtrics Current cloud backlog € millions 18,078 ▲ +32% (+29% @cc) Cloud revenue € millions 4,708 ▲ +27% (+27% @cc) Cloud ERP Suite revenue € millions 3,949 ▲ +35% (+35% @cc) Q4 provided a strong finish to 2024
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52024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC We achieved all our cloud goals for 2024 Illustrative | All numbers are in € millions, non-IFRS unless otherwise stated ▲ +43% (+40% @cc) T otal Cloud Backlog 63,292 Cloud Revenue ▲ +25% (+26% @cc) 17,141 ▲ +33% (+34% @cc) Thereof Cloud ERP Suite 14,166 Free Cash Flow -19% 4,113 T otal Revenue ▲ +10% (+10% @cc) 34,176 €17.1bn +26% €13.7bn Cloud Revenue +28% €9.8bn Cloud Gross Profit €12.6bn 2023 2023 20242024 Operating Profit ▲ +25% (+26% @cc) 8,153
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62024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
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72024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Outlook 2025 The right pieces in place for acceleratedT otal Revenue growth and an expansion of Operating Profit through 2027 Illustrative | Numbers in €bn | Continuing operations Achieved outlook Operating profit Total revenue Cloud revenue 8.2 2024 2025 Outlook 21.6-21.9 +26% to +28% Total revenue growth acceleration through 2027 17.1 2027 34.2 Operating margin expansion beyond2025 10.3-10.6 +26% to +30% 1 | Product innovation 2 | Commercial innovation 3 | Simplification
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82024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 1 | Product innovation Accelerating future growth by bringing together apps, data, and AI
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92024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Tools & Methodology Proven methodology guided by an Enterprise Architect using Business Transformation Suite Commercial Flexibility Flexibility to land with & adopt SAP’s latest innovation as part of RISE and GROW journeys Expansion Benefits Strategic incentives for customers to expand across SAP Business Suite 2 | Commercial innovation Significantly simplifying how our customers unlock value through the SAP portfolio + +
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102024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Development 20% efficiency potential through automated code generation with Joule for Developers 75% reduction of average contract booking time with AI-assisted contract validation leveraging the SAP GenAI Hub Go-to-Market productivity gain through AI-assisted quote-to-cash process automation leveraging the SAP GenAI Hub Corporate Functions >20x 3 | Simplification Unlocking AI-driven efficiency across SAP
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112024 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Operating profit Total revenue Cloud revenue 29.5 2021 Actual 27.0 31.2 6.4 11.4 6.9 8.7 6.5 8.2 2023 Actual 2022 Actual 2024 Actual 2025 Outlook Total revenue growth acceleration through 2027 Illustrative | Numbers in €bn | Continuing operations 13.7 17.1 2027 34.2 21.6-21.9 +26% to +28% 10.3-10.6 +26% to +30% Achieved outlook Outlook 2025 The right pieces in place for accelerated T otal Revenue growth and an expansion of Operating Profit through 2027 Operating margin expansion beyond2025
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Dominik Asam CFO
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13 Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC All outlook key metrics met or exceeded for FY 2024 Cloud gross profit (Cloud gross margin in%) Gross profit (Gross margin in %) € millions € millions IFRS Non-IFRS IFRS Non-IFRS 12,481 12,559 24,932 25,011 72.8% 73.3% 73.0% 73.2% ▲ +28% ▲ +28% (+28% @cc) ▲ +11% ▲ +11% (+11% @cc) Operating profit € millions IFRS Non-IFRS @cc 4,665 8,232 ▼ –20% ▲+26% Outlook: €7.8 – 8.0bn @cc Cloud revenue € millions IFRS Non-IFRS @cc 17,141 17,212 ▲ +25% ▲ +26% Outlook: €17.0 – 17.3bn @cc Cloud & software revenue € millions IFRS Non-IFRS @cc 29,830 29,955 ▲ +11% ▲ +11% Outlook: €29.5 – 29.8bn @cc Free cash flow € millions 4,113 ▼ – 19% Outlook: €3.5 – 4.0bn Effective tax rate percent Non-IFRS 32.3% Outlook: approx. 32% Total revenue € millions 34,176 ▲ +10% (+10% @cc) Current cloud backlog € millions 18,078 ▲ +32% (+29% @cc) Cloud ERP Suite revenue € millions 14,166 ▲ +33% (+34% @cc)
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14 Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC APJ Cloud revenue ▲ +33% (+37% @cc) Regional revenue performance 2024 AMERICAS EMEA Brazil and Canada had a particularly strong cloud revenue growth in 2024. Germany and Spain had strong cloud revenue growth while Saudi Arabia performed particularly strong in 2024. Revenues calculated based on customer location; Individual country highlights are based on Non -IFRS at constant currencies Cloud revenue ▲ +19% (+19% @cc) Cloud & software revenue ▲ +9% (+10% @cc) Cloud revenue ▲ +32% (+31% @cc) Cloud & software revenue ▲ +13% (+12% @cc) Cloud & software revenue ▲ +9% (+13% @cc) China, India and Japan had an outstanding cloud revenue growth in 2024.
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15 Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC . Revenue Gross profit (Gross margin %) Non-IFRS in € millions, unless otherwise stated FY 2024 ∆ in % ∆ in % @cc FY 2024 ∆ in % ∆ in % @cc Cloud 17,141 25 26 12,559 (73.3) 28 28 SaaS/PaaS 16,601 29 29 IaaS 540 -28 -27 Software licenses and support 12,689 -4 -4 11,427 (90.1) -4 -4 Cloud and software 29,830 11 11 23,986 (80.4) 10 11 Services 4,346 1 2 1,025 (23.6) 17 17 Total 34,176 10 10 25.011 (73.2) 11 11 Revenue and gross profit development
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16 Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Tax rate, Cash flow, and Earnings per share Effective tax rate Free cash flow Earnings per share Full year | € Full year | percent Full year | € billions IFRS Non-IFRS IFRS Non-IFRS basic Diluted basic 33.9 32.3 4.11 2.68 2.65 4.53 ▲ +1.3pp ▲ +1.9pp ▼ -19% ▼ -14% ▼ -14% ▲ +22%
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17 Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2025 Financial outlook1 Cloud revenue Cloud & software revenue Employee engagement index Customer net promoter score € billions @cc € billions @cc percent points 21.6 – 21.9 33.1 – 33.6 74 – 78 12 – 16 ▲ +26% – 28% (2024: 17.14) ▲ +11% – 13% (2024: 29.83) Operating profit Free cash flow Effective tax rate Carbon emissions Share of women in executive roles € billions € billions percent kilotons percent Non-IFRS @cc Non-IFRS Steadily decrease Steadily increase10.3 – 10.6 approx. 8.0 approx. 32 ▲ +26% – 30% (2024: 8.15) (2024: 4.222) (2024: 32.3) 2025 Non-financial outlook 1) 2025 financial outlook is based on constant currencies assumptions, including an exchange rate of 1.08 US Dollar per Euro 2) Based on updated free cash flow definition
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18 Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Q&A
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19 Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Appendix
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20 Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC SAP Q4 2024 Financial Results Cloud gross profit (Cloud gross margin in %) Gross profit (Gross margin in %) Operating profit € millions € millions € millions IFRS Non-IFRS IFRS Non-IFRS IFRS Non-IFRS 3,429 3,458 6,943 6,972 2,016 2,436 72.8% 73.5% 74.0% 74.3% ▲ +29% ▲ +30% (+29% @cc) ▲ +12% ▲ +12% (+12% @cc) ▲ +6% ▲ +24% (+24% @cc) Current cloud backlog Total revenue Cloud & software revenue Cloud revenue Cloud ERP Suite revenue € millions € millions € millions € millions € millions 18,078 9,377 8,267 4,708 3,949 ▲ +32% (+29% @cc) ▲ +11% (+10% @cc) ▲ +12% (+11% @cc) ▲ +27% (+27% @cc) ▲ +35% (+35% @cc)
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21 Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Non-financial performance 2024 Employee engagement index Customer net promoter score percent points 74 12 ▼ -6pp ▲ +3 Outlook: 70 – 74 Outlook: 9 – 13 Carbon emissions Share of women in executive roles megatons percent 6.9 22.5 ● flat ▲ +0.3pp Outlook: steadily decrease Outlook: steadily increase
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22 Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Income statement: Fourth quarter 2024 IFRS Non-IFRS € millions, unless otherwise stated Q4 24 Q4 23 ∆ % Q4 24 Q4 23 ∆ % ∆ % @cc Cloud 4,708 3,699 27 4,708 3,699 27 27 Software licenses 683 838 -18 683 838 -18 -19 Software support 2,876 2,846 1 2,876 2,846 1 1 Software licenses and support 3,559 3,683 -3 3,559 3,683 -3 -4 Cloud and software 8,267 7,382 12 8,267 7,382 12 11 Services 1,110 1,086 2 1,110 1,086 2 2 Total revenue 9,377 8,468 11 9,377 8,468 11 10 Total operating expenses -7,361 -6,566 12 -6,941 -6,499 7 6 Operating profit (loss) 2,016 1,902 6 2,436 1,969 24 24 Financial income, net 273 -93 N/A -40 -39 4 Profit (loss) before tax from continuing operations 2,207 1,810 22 2,313 1,930 20 Income tax expense -591 -608 -3 -694 -628 10 Profit (loss) after tax from continuing operations 1,616 1,201 35 1,619 1,302 24 Profit (loss) after tax from discontinued operations 0 0 N/A 0 0 N/A Profit (loss) after tax* 1,616 1,201 35 1,619 1,302 24 Operating margin (in %) 21.5 22.5 -1.0pp 26.0 23.3 2.7pp 2.9pp Earnings per share, basic (in €) from continuing operations 1.37 1.05 31 1.40 1.12 24 Earnings per share, basic (in €)* 1.37 1.05 31 1.40 1.12 24 Appendix * from continuing and discontinued operations
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23 Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Income statement: Full year 2024 IFRS Non-IFRS € millions, unless otherwise stated Q1-Q4 24 Q1-Q4 23 ∆ % Q1-Q4 24 Q1-Q4 23 ∆ % ∆ % @cc Cloud 17,141 13,664 25 17,141 13,664 25 26 Software licenses 1,399 1,764 -21 1,399 1,764 -21 -21 Software support 11,290 11,496 -2 11,290 11,496 -2 -1 Software licenses and support 12,689 13,261 -4 12,689 13,261 -4 -4 Cloud and software 29,830 26,924 11 29,830 26,924 11 11 Services 4,346 4,283 1 4,346 4,283 1 2 Total revenue 34,176 31,207 10 34,176 31,207 10 10 Total operating expenses -29,511 -25,408 16 -26,022 -24,693 5 6 Operating profit (loss) 4,665 5,799 -20 8,153 6,514 25 26 Financial income, net 398 -456 N/A -63 -311 -80 Profit (loss) before tax from continuing operations 4,764 5,341 -11 7,792 6,201 26 Income tax expense -1,614 -1,741 -7 -2,513 -1,880 34 Profit (loss) after tax from continuing operations 3,150 3,600 -13 5,279 4,321 22 Profit (loss) after tax from discontinued operations 0 2,363 N/A 0 1,782 N/A Profit (loss) after tax* 3,150 5,964 -47 5,279 6,103 -13 Operating margin (in %) 13,6 18,6 -4.9pp 23,9 20,9 3.0pp 3.1pp Earnings per share, basic (in €) from continuing operations 2.68 3.11 -14 4.53 3.72 22 Earnings per share, basic (in €)* 2.68 5.26 -49 4.53 5.51 -18 Appendix * from continuing and discontinued operations
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24 Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Gross margin development Non-IFRS, in percent Q1 23 Q2 23 Q3 23 Q4 23 FY 23 Q1 24 Q2 24 Q3 24 Q4 24 FY 24 Cloud 70.8 71.4 73.0 72.2 71.9 72.5 73.3 73.7 73.5 73.3 Software licenses & support 88.9 90.2 90.1 89.8 89.8 89.2 89.7 90.1 91.0 90.1 Cloud & software 79.9 80.6 81.2 81.0 80.7 79.8 80.2 80.5 81.0 80.4 Services 21.0 17.8 21.2 21.9 20.5 20.3 24.8 24.6 24.6 23.6 Total gross margin 71.3 71.9 73.0 73.4 72.4 71.8 72.7 73.6 74.3 73.2 Appendix
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25 Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Appendix Cost ratios: Fourth quarter 2024 | Total revenue: €9.4bn Research & development Sales & marketing General administration 17.8% €1.7bn 26.0% €2.4bn 3.9% €0.4bn -1.9pp | -1.9pp @cc -0.1pp | -0.3pp @cc -0.3pp | -0.3pp @cc Non-IFRS as percent of total revenue
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26 Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Appendix Cost ratios: Full year 2024 | Total revenue: €34.2bn Research & development Sales & marketing General administration 19.0% €6.5bn 25.9% €8.9bn 4.1% €1.4bn -1.2pp | -1.2pp @cc -1.1pp | -1.1pp @cc -0.2pp | -0.2pp @cc Non-IFRS as percent of total revenue
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27 Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Balance sheet condensed: December 31, 2024 – IFRS Assets € millions 12/31/24 12/31/23 Cash, cash equivalents and other financial assets 11,239 11,468 Trade and other receivables 6,774 6,322 Other current assets 3,389 2,781 Total current assets 21,401 20,571 Goodwill 31,147 29,081 Intangible assets 2,706 2,505 Property, plant, and equipment 4,493 4,276 Other non-current assets 14,375 11,899 Total non-current assets 52,721 47,760 Total assets 74,122 68,331 Equity and liabilities € millions 12/31/24 12/31/23 Trade and other payables 1,990 1,783 Provisions 716 235 Other liabilities 10,395 7,648 Contract liabilities, current 5,978 4,975 Total current liabilities 19,079 14,641 Financial liabilities 7,169 7,941 Provisions 494 432 Contract liabilities, non-current 88 33 Other non-current liabilities 1,483 1,878 Total non-current liabilities 9,235 10,284 Total liabilities 28,314 24,925 Total equity 45,808 43,406 Total equity and liabilities 74,122 68,331 Due to rounding, numbers may not add up precisely Appendix
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28 Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Cash flow development € millions, unless otherwise stated 12M 2024 12M 2023 ∆ in % Operating cash flow 5,220 6,210 -16 – Capital expenditure -797 -785 2 – Payments of lease liabilities -310 -332 -7 Free cash flow 4,113 5,093 -19 Free cash flow in percent of total revenue 12% 16% -4pp Free cash flow in percent of profit after tax (IFRS) 131% 141% -11pp Due to rounding, numbers may not add up precisely Appendix
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29 Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Net debt € millions, unless otherwise stated 2024 2023 Net liquidity (+)/Net Debt (-) | 12/31/2023 | PY: 12/31/2022 3,521 -2,070 Operating cash flow 5,220 6,210 Capital expenditure -797 -785 Payments of lease liabilities -310 -332 Business combinations -1,114 -1,168 Dividends -2,565 -2,395 Treasury shares -2,106 -949 Net proceeds from Qualtrics sale 0 5,510 Other -155 -500 Net liquidity (+)/Net Debt (-) | 12/31/2024 | PY: 12/31/2023 1,695 3,521 Appendix Due to rounding, numbers may not add up precisely
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30 Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Additional outlook information and Non-IFRS adjustments Non-IFRS adjustments Actual Amounts FY 2023 Actual Amounts FY 2024 Est. Amounts FY 2025 Acquisition-related charges €345m €356m €380m to €460m Restructuring charges €215m €3,144m Approximately €100m Regulatory compliance matter expenses €155m -€11m €0m Gains and losses from equity securities, net €145m -€461m N/A1 The Company expects a full-year 2025 effective tax rate (Non-IFRS) of around 32% (2024: 32.2%). Appendix Due to rounding, numbers may not add up precisely 1) Due to the uncertainty and potential variability of gains and losses from equity securities, we cannot provide an estimate for the full year without unreasonable efforts. This item could however have a material impact on our non-IFRS measures below operating profit
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31 Fourth Quarter and Full-Year 2024 Results Presentation | January 28, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Expected currency impact Expected currency impact based on December 31, 2024 Level applied for 2025 While SAP’s 2025 financial outlook for the income statement parameters is at constant currencies (including an average exchange rate of 1.08 USD per EUR), actual currency reported figures are expected to be impacted by currency exchange rate fluctuations as the company progresses through the year, as reflected in the table below. in percentage points Q1 25 FY 2025 Cloud revenue growth +2.5pp +2.5pp Cloud and software revenue growth +2.0pp +2.0pp Operating profit growth (non-IFRS) +5.0pp +4.0pp This includes an exchange rate of 1.04 USD per EUR. Appendix