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First Quarter 2025 Results Christian Klein, CEO Dominik Asam, CFO April 22, 2025 Public
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2 First Quarter 2025 Results Presentation | April 22, 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 2024 Annual Report on Form 20-F.
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Christian Klein CEO
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8D2A008406069B015D7800A42C13AD 1E592F 035663 0040B0 223548 Public 3,928 (+25%) 4,153 (+25%) 4,351 (+27%) 4,708 (+27%) 4,993 (+26%) 2,849 (+28%) 3,043 (+29%) 3,209 (+28%) 3,458 (+29%) 3,745 (+30%) Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 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 18,202 ▲ +28% (+29% @cc) Cloud revenue € millions 4,993 ▲ +27% (+26% @cc) Cloud ERP Suite revenue € millions 4,251 ▲ +34% (+33% @cc) Q1 was a fast-paced start into the year
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8D2A008406069B015D7800A42C13AD 1E592F 035663 0040B0 223548 Public
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8D2A008406069B015D7800A42C13AD 1E592F 035663 0040B0 223548 Planning and Analytics AI/ML SAP Business Data Cloud Finance HR Supply Chain Third-party Journal entries Cost object Cash flow Compensation Rating Purchase orders Suppliers Delivery schedules Inventory Inflation data Interest rates General ledger Workforce Structured data Unstructured data SAP Data Non-SAP Data + ? Product innovation BDC is the new center of gravity for business data Public
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8D2A008406069B015D7800A42C13AD 1E592F 035663 0040B0 223548 SAP Business Data Cloud One semantical layer Data products Non-SAP applications 360° SAP Business AI SAP Joule SAP Foundation Model SAP Knowledge Graph FinanceSpend CustomerSupply Chain SAP applications powered by SAP Business Technology Platform HR SAP Knowledge Graph Analytics agents Finance agentsCX agents HR agents Spend agentsSupply chain agents Product innovation SAP has the ingredients in place to win in agentic AI Public
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Public Product 80% support self-service rate for customers via AI-driven issue resolution build on Up to 90 mins/day Go-to-Market of core financial planning processes to run on Corporate Functions 90% Simplification Unlocking efficiencies through “SAP runs SAP” *by Q3 2025 time savings per consultant with Joule for ConsultantsSAP GenAI Hub SAP Analytics Cloud & Business Data Cloud by Q3 2025
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Dominik Asam CFO
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10 First Quarter 2025 Results Presentation | April 22, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC SAP Q1 2025 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 3,720 3,745 6,607 6,632 2,333 2,455 74.5% 75.0% 73.3% 73.6% ▲ +31% ▲ +31% (+30% @cc) ▲ +15% ▲ +15% (+14% @cc) ▲ N/A ▲ +60% (+58% @cc) Current cloud backlog Total revenue Cloud & Software revenue Cloud revenue Cloud ERP Suite revenue € millions € millions € millions € millions € millions 18,202 9,013 7,938 4,993 4,251 ▲ +28% (+29% @cc) ▲ +12% (+11% @cc) ▲ +14% (+13% @cc) ▲ +27% (+26% @cc) ▲ +34% (+33% @cc)
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11 First Quarter 2025 Results Presentation | April 22, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC APJ Cloud revenue ▲ +39% (+39% @cc) Regional revenue performance AMERICAS EMEA Brazil and Chile had an outstanding cloud revenue growth while Canada and the U.S were particularly strong in Q1. Germany, Italy and Spain had an outstanding cloud revenue growth while France performed particularly strong. Revenues calculated based on customer location; Individual country highlights are based on Non -IFRS at constant currencies Cloud revenue ▲ +21% (+19% @cc) Cloud & software revenue ▲ +12% (+10% @cc) Cloud revenue ▲ +30% (+29% @cc) Cloud & software revenue ▲ +14% (+13% @cc) Cloud & software revenue ▲ +21% (+20% @cc) India and South Korea had an outstanding cloud revenue growth while China, Japan and Singapore performed particularly strong.
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12 First Quarter 2025 Results Presentation | April 22, 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 Q1 2025 ∆ in % ∆ in % @cc Q1 2025 ∆ in % ∆ in % @cc Cloud 4,993 27 26 3,745 (75.0) 31 30 SaaS/PaaS 4,890 30 28 IaaS 104 -37 -38 Software licenses and support 2,945 -3 -4 2,652 (90.1) -2 -3 Cloud and software 7,938 14 13 6,397 (80.6) 15 14 Services 1,075 -1 -2 235 (21.8) 7 3 Total 9,013 12 11 6.632 (73.6) 15 14 Revenue and gross profit development
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13 First Quarter 2025 Results Presentation | April 22, 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 Operating cash flow Free cash flow Earnings per share Q1 | € Q1 | percent Q1 | € billions Q1 | € billions IFRS Non-IFRS IFRS Non-IFRS Basic Diluted Basic 27.2 29.4 3.780 3.583 1.52 1.51 1.44 ▲ +11.3pp ▼ -2.9pp ▲ +31% ▲ +36% ▲ N/A ▲ N/A ▲ +79%
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14 First Quarter 2025 Results Presentation | April 22, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2025 Financial outlook1 Cloud revenue Cloud & software revenue € billions @cc € billions @cc 21.6 – 21.9 33.1 – 33.6 ▲ +26% – 28% (2024: 17.14) ▲ +11% – 13% (2024: 29.83) Operating profit Free cash flow Effective tax rate € billions @cc € billions percent Non-IFRS Non-IFRS 10.3 – 10.6 approx. 8.0 approx. 32 ▲ +26% – 30% (2024: 8.15) (2024: 4.22) (2024: 32.3) 1) 2025 financial outlook is based on constant currencies assumptions, including an exchange rate of 1.08 US Dollar per Euro
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15 First Quarter 2025 Results Presentation | April 22, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Q&A
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16 First Quarter 2025 Results Presentation | April 22, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Appendix
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17 First Quarter 2025 Results Presentation | April 22, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Income statement: First quarter 2025 IFRS Non-IFRS € millions, unless otherwise stated Q1 25 Q1 24 ∆ % Q1 25 Q1 24 ∆ % ∆ % @cc Cloud 4,993 3,928 27 4,993 3,928 27 26 Software licenses 183 203 -10 183 203 -10 -10 Software support 2,761 2,829 -2 2,761 2,829 -2 -3 Software licenses and support 2,945 3,031 -3 2,945 3,031 -3 -4 Cloud and software 7,938 6,960 14 7,938 6,960 14 13 Services 1,075 1,081 -1 1,075 1,081 -1 -2 Total revenue 9,013 8,041 12 9,013 8,041 12 11 Total operating expenses -6,680 -8,828 -24 -6,558 -6,507 1 0 Operating profit (loss) 2,333 -787 N/A 2,455 1,533 60 58 Other non-operating income/expense, net 10 -148 N/A 10 -148 N/A Financial income, net 125 -45 N/A -83 11 N/A Profit (loss) before tax 2,468 -980 N/A 2,382 1,396 71 Income tax expense -672 157 N/A -701 -452 55 Profit (loss) after tax 1,796 -824 N/A 1,681 944 78 Operating margin (in %) 25.9 -9.8 35.7pp 27.2 19.1 8.2pp 8.1pp Earnings per share, basic (in €)* 1.52 -0.71 N/A 1.44 0.81 79 Appendix
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18 First Quarter 2025 Results Presentation | April 22, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Gross margin development Non-IFRS, in percent Q1 24 Q2 24 Q3 24 Q4 24 FY 24 Q1 25 Cloud 72.5 73.3 73.7 73.5 73.3 75.0 Software licenses & support 89.2 89.7 90.1 91.0 90.1 90.1 Cloud & software 79.8 80.2 80.5 81.0 80.4 80.6 Services 20.3 24.8 24.6 24.6 23.6 21.8 Total gross margin 71.8 72.7 73.6 74.3 73.2 73.6 Appendix
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19 First Quarter 2025 Results Presentation | April 22, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Appendix Cost ratios: First quarter 2025 | Total revenue: €9.0bn Research & development Sales & marketing General administration 18.5% €1.7bn 23.7% €2.1bn 4.0% €0.4bn -2.1pp | -2.0pp @cc -3.8pp | -3.8pp @cc -0.5pp | -0.5pp @cc Non-IFRS as percent of total revenue
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20 First Quarter 2025 Results Presentation | April 22, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Balance sheet condensed: March 31, 2025 – IFRS Assets € millions 03/31/25 12/31/24 Cash, cash equivalents and other financial assets 12,983 11,239 Trade and other receivables 7,981 6,774 Other current assets 3,005 3,389 Total current assets 23,968 21,401 Goodwill 30,304 31,243 Intangible assets 2,507 2,706 Property, plant, and equipment 4,461 4,493 Other non-current assets 14,388 14,375 Total non-current assets 51,661 52,817 Total assets 75,629 74,218 Equity and liabilities € millions 03/31/25 12/31/24 Trade and other payables 2,210 1,988 Provisions 502 716 Other liabilities 8,626 10,395 Contract liabilities, current 9,211 5,978 Total current liabilities 20,550 19,078 Financial liabilities 6,701 7,169 Provisions 476 494 Contract liabilities, non-current 99 88 Other non-current liabilities 1,718 1,581 Total non-current liabilities 8,994 9,332 Total liabilities 29,543 28,410 Total equity 46,086 45,808 Total equity and liabilities 75,629 74,218 Due to rounding, numbers may not add up precisely Appendix
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21 First Quarter 2025 Results Presentation | April 22, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Cash flow development € millions, unless otherwise stated Q1 2025 Q1 2024 ∆ in % Operating cash flow 3,780 2,878 31 – Capital expenditure -168 -187 -10 – Proceeds from sales of PPE & intangibles 38 27 38 – Payments of lease liabilities -68 -78 -13 Free cash flow 3,583 2,642 36 Free cash flow in percent of total revenue 40% 33% +7pp Free cash flow in percent of profit after tax (IFRS) 199% N/A N/A Due to rounding, numbers may not add up precisely Appendix
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22 First Quarter 2025 Results Presentation | April 22, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Net debt € millions, unless otherwise stated 2025 2024 Net liquidity (+)/Net Debt (-) | 12/31/2024 | PY: 12/31/2023 1,695 3,521 Operating cash flow 3,780 2,878 Capital expenditure -168 -187 Proceeds from sales 38 27 Payments of lease liabilities -68 -78 Business combinations -3 -19 Treasury shares -125 -432 Interest payments, net -161 -122 Other -350 50 Net liquidity (+)/Net Debt (-) | 03/31/2025 | PY: 03/31/2024 4,639 5,641 Appendix Due to rounding, numbers may not add up precisely
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23 First Quarter 2025 Results Presentation | April 22, 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 Q1 2024 Actual Amounts Q1 2025 Est. Amounts FY 2025 Acquisition-related charges €79m €123m €380m to €460m Restructuring charges €2,242m €0m approximately €100m Regulatory compliance matter expenses €0m €0m €0m Gains and losses from equity securities, net €56m -€208m 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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24 First Quarter 2025 Results Presentation | April 22, 2025 2025 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Expected currency impact Expected currency impact based on March 31, 2025 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 Q2 25 FY 2025 Cloud revenue growth -1.0pp -2.0pp Cloud and software revenue growth -1.0pp -0.5pp Operating profit growth (non-IFRS) 0.0pp -1.0pp This includes an exchange rate of 1.08 USD per EUR. Appendix