Interim report
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Current cloud backlog of €18.2 billion, up 28% and up 29% at constant currencies Cloud revenue up 27% and up 26% at constant currencies Cloud ERP Suite revenue up 34% and up 33% at constant currencies Total revenue up 12% and up 11% at constant currencies IFRS operating profit of €2.3 billion; non-IFRS operating profit of €2.5 billion, up 60% and up 58% at constant currencies Q1 2025 | in € millions, unless otherwise stated Cloud ERP Suite revenue Cloud revenueCloud & Software revenue Total revenueCurrent cloud backlog 4,2514,9937,9389,01318,202 +34% (+33% @cc) +27% (+26% @cc) +14% (+13% @cc) +12% (+11% @cc) +28% (+29% @cc) Operating cash flow Earnings per Share (in €) Operating profitGross profit (Gross margin) Cloud gross profit (Cloud gross margin) 3,780 +31% dilutedIFRS basicIFRSIFRSIFRS 1.511.522,3336,607 (73.3%)3,720 (74.5%) Free cash flow N/A N/A N/A +15% +31% Non-IFRS basicNon-IFRSNon-IFRSNon-IFRS 3,5831.442,4556,632 (73.6%)3,745 (75.0%) +36% +79% +60% (+58% @cc) +15% (+14% @cc) +31% (+30% @cc) SAP Quarterly Statement Q1 2025
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2/19 SAP Quarterly Statement Q1 2025 Walldorf, Germany – April 22, 2025 SAP SE (NYSE: SAP) announced today its financial results for the first quarter ended March 31, 2025. Christian Klein, CEO: Q1 once again underlines that our success formula is working. Current cloud backlog expanded 29% at constant currencies and total revenue saw a double-digit increase. With a share of more predictable revenue of 86%, SAP’s business model remains resilient in uncertain times. Our AI-powered portfolio enables companies to navigate supply chain disruptions in over 130 countries and to unlock efficiencies with agility and speed. Dominik Asam, CFO: Q1 marks a solid start to the year in a highly volatile environment, with strong total revenue growth and outstanding operating profit expansion. These results are a testament to our cost discipline and focused execution. While we’re encouraged by this momentum, we remain mindful of the broader environment and are approaching the rest of the year with vigilance, continuing to safeguard both profit and cash flow. Financial Performance Group results at a glance – First quarter 2025 IFRS Non-IFRS 1 € million, unless otherwise stated Q1 2025 Q1 2024 ∆ in % Q1 2025 Q1 2024 ∆ in % ∆ in % const. curr. SaaS/PaaS 4,890 3,764 30 4,890 3,764 30 28 Thereof Cloud ERP Suite 2 4,251 3,167 34 4,251 3,167 34 33 Thereof Extension Suite 3 639 598 7 639 598 7 6 IaaS4 104 164 –37 104 164 –37 –38 Cloud revenue 4,993 3,928 27 4,993 3,928 27 26 Cloud and software revenue 7,938 6,960 14 7,938 6,960 14 13 Total revenue 9,013 8,041 12 9,013 8,041 12 11 Share of more predictable revenue (in %) 86 84 2pp 86 84 2pp Cloud gross profit 3,720 2,837 31 3,745 2,849 31 30 Gross profit 6,607 5,762 15 6,632 5,774 15 14 Operating profit (loss) 2,333 –787 NA 2,455 1,533 60 58 Profit (loss) after tax 1,796 –824 NA 1,681 944 78 Earnings per share - Basic (in €) 1.52 –0.71 NA 1.44 0.81 79 Net cash flows from operating activities 3,780 2,878 31 Free cash flow 3,583 2,642 36 1 For a breakdown of the individual adjustments see table “Non-IFRS Operating Expense Adjustments by Functional Areas” in this Quarterly Statement. 2 Cloud ERP Suite references the portfolio of strategic Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) solutions that are tightly integrated with our core ERP solutions and are included in key commercial packages, such as RISE with SAP. Furth er, Cloud ERP Suite also includes cloud-based maintenance components supporting our customers’ ERP landscapes and their cloud transformation. The following offerings contribute to Cloud ERP Suite revenue: SAP Cloud ERP, SAP Business Technology Platform, financial- and spend management, supply chain management, core solutions for human capital management, commerce, business transformation managemen t and AI. 3 Extension Suite references SAP’s remaining SaaS and PaaS solutions that supplement and extend the functional coverage of the Cloud ERP Suite. 4 Infrastructure as a service (IaaS): The major portion of IaaS comes from SAP HANA Enterprise Cloud .
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3/19 SAP Quarterly Statement Q1 2025 Financial Highlights 1 First Quarter 2025 In the first quarter, current cloud backlog grew by 28% to €18.20 billion and was up 29% at constant currencies. Cloud revenue was up 27% to €4.99 billion and up 26% at constant currencies. Cloud ERP Suite revenue was up 34% to €4.25 billion and up 33% at constant currencies. Software licenses revenue decreased by 10% to €0.18 billion and was down 10% at constant currencies. Cloud and software revenue was up 14% to €7.94 billion and up 13% at constant currencies. Services revenue was down 1% to €1.07 billion and down 2% at constant currencies. Total revenue was up 12% to €9.01 billion and up 11% at constant currencies. The share of more predictable revenue increased by 2 percentage points to 86%. IFRS cloud gross profit was up 31% to €3.72 billion. Non-IFRS cloud gross profit was up 31% to €3.74 billion and was up 30% at constant currencies. IFRS Cloud gross margin was up 2.3 percentage points to 74.5%, non-IFRS cloud gross margin up 2.5 percentage points to 75.0% and up 2.6 percentage points at constant currencies. IFRS operating profit increased to €2.33 billion and IFRS operating margin was up 35.7 percentage points to 25.9%. IFRS operating profit growth was positively impacted by a restructuring expense decline of €2.2 billion as compared to Q1 2024 in connection with the 2024 transformation program. Non-IFRS operating profit was up 60% to €2.46 billion and was up 58% at constant currencies, non-IFRS operating margin increased by 8.2 percentage points to 27.2% and was up 8.1 percentage points to 27.1% at constant currencies. Both, IFRS and non-IFRS operating profit growth benefitted from the operational efficiencies realized through successful execution of the 2024 transformation program. IFRS earnings per share (basic) increased to €1.52. Non-IFRS earnings per share (basic) increased 79% to €1.44. IFRS effective tax rate was 27.2% and non-IFRS effective tax rate was 29.4%. Both were mainly driven by a temporary inability to offset withholding taxes in Germany due to carryforward of tax losses from prior year. The IFRS effective tax rate is lower than the non-IFRS effective tax rate due to tax benefits from tax-exempt income. Operating cash flow in the first quarter was up 31% to €3.78 billion and free cash flow increased by 36% to €3.58 billion. The increase was mainly attributable to the higher profitability and the positive development of working capital (outside of restructuring related impacts), which was partially offset by higher payouts for share-based compensation and restructuring. Share Repurchase Program In May 2023, SAP announced a share repurchase program with an aggregate volume of up to €5 billion and a term until December 31, 2025. As of March 31, 2025, SAP had repurchased 18,985,135 shares at an average price of €164.79 resulting in a purchased volume of approximately €3.1 billion under the program. Additionally, the third tranche of the program was completed on April 08, 2025, with a purchased volume of approximately €1.5 billion. 2024 Transformation Program: Focus on scalability of operations and key strategic growth areas In January 2024, SAP announced a company-wide restructuring program which concluded as planned in the first quarter 2025. Overall expenses associated with the program are approximately €3.2 billion. Restructuring payouts amounted to €2.5 billion for the full-year 2024 and €0.3 billion for the first quarter 2025. Approximately €0.4 billion is expected to be paid out in the remainder of 2025. Business Highlights In the first quarter, customers around the globe continued to choose “RISE with SAP” to drive their end-to-end business transformations. These customers included: Alte Leipziger-Hallesche, East Japan Railway, Federal Employment Agency (Bundesagentur für Arbeit), Heijmans, HUGO BOSS, Hyundai Motor Company, Kia Corporation, Mazda Motor, Molson Coors Beverage Company, Piramal Pharma, SYENSQO, TOPPAN, Tyson Foods, Villeroy & Boch Group, Webasto Group, and WWZ Energie. Climeworks, HMM, LG Energy Solution, Lion, Nanometrics, and Samyang Foods went live on SAP S/4HANA Cloud in the first quarter. Gymshark, HARGASSNER, Oki Electric Industry, Sciens Building Solutions, Stegra, and VFS Global chose “GROW with SAP”, an offering helping customers adopt cloud ERP with speed, predictability, and continuous innovation. Key customer wins across SAP’s solution portfolio included: ACTION, Booking, DKSH, Energy Queensland, Ferring Pharmaceuticals, KION GROUP , Klüber Lubrication München, The Kraft Heinz, Maastricht University, MARELLI Europe, NEC Corporation, Tibnor, and WEG. 1 The Q1 2025 results were also impacted by other effects. For details, please refer to the disclosures on page 19 of this document.
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4/19 SAP Quarterly Statement Q1 2025 Alfred Ritter, Axpo Services, BASF Coatings, Deutsche Bahn, Parle Biscuits, Ravensburger, and Wipro went live on SAP solutions. In the first quarter, SAP’s cloud revenue performance was particularly strong in AP J and EMEA and robust in the Americas region. Brazil, Chile, Germany, India, Italy, South Korea and Spain had outstanding performances, while Canada, China, France, Japan, Singapore and the U.S. were particularly strong. On February 13, SAP announced SAP Business Data Cloud, a groundbreaking solution that unifies SAP and third-party data throughout an organization, providing the trusted data foundation organizations need to make more impactful decisions and foster reliable AI. On February 20, SAP proposed a dividend of €2.35 per share for fiscal year 2024 representing a year-over-year increase of 6.8% compared to the regular dividend paid for fiscal year 2023. The dividend is subject to shareholder approval at the upcoming AGM scheduled for May 13, 2025. Outlook 2025 Financial Outlook 2025 While the prevailing dynamic environment implies elevated levels of uncertainty and reduced visibility, SAP currently continues to expect: • €21.6 – 21.9 billion cloud revenue at constant currencies (2024: €17.14 billion), up 26% to 28% at constant currencies. • €33.1 – 33.6 billion cloud and software revenue at constant currencies (2024: €29.83 billion), up 11% to 13% at constant currencies. • €10.3 – 10.6 billion non-IFRS operating profit at constant currencies (2024: €8.15 billion), up 26% to 30% at constant currencies. • Approximately €8.0 billion free cash flow at actual currencies (2024: €4.22 billion) • An effective tax rate (non-IFRS) of approximately 32% (2024: 32.3%)2. The company also continues to expect current cloud backlog growth at constant currencies to slightly decelerate in 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. Currency Impact Assuming March 31, 2025. Rates Apply for 2025 In percentage points Q2 2025 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. 2 The effective tax rate (non-IFRS) is a non-IFRS financial measure and is presented for supplemental informational purposes only. We do not provide an outlook for the effective tax rate (IFRS) due to the uncertainty and potential variability of gains and losses associated with equity securities, which are reconciling items between the two effective tax rates (non- IFRS and IFRS). These items cannot be provided without unreasonable efforts but could have a significant impact on our future effective tax rate (IFRS).
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5/19 SAP Quarterly Statement Q1 2025 Additional Information This press release and all information therein is preliminary and unaudited. Due to rounding, numbers may not add up precisely. SAP Annual General Meeting of Shareholders The Annual General Meeting of Shareholders will take place on May 13, 2025, as a virtual event. The whole event will be webcast on the Company’s website and online voting options will be available for shareholders. Further details can be found at https://www.sap.com/agm . Financial Analyst and Investor Conference SAP will hold a financial analyst event on Wednesday, May 21st, in conjunction with SAP Sapphire & ASUG Annual Conference Orlando. SAP Performance Measures For more information about our key growth metrics and performance measures, their calculation, their usefulness, and their limitations, please refer to the following document on our Investor Relations website: https://www.sap.com/investors/performance- measures Webcast SAP senior management will host a financial analyst conference call on Tuesday, April 22nd at 11:00 PM (CEST) / 10:00 PM (BST) / 5:00 PM (EDT) / 2:00 PM (PDT). The conference will be webcast on the Company’s website at https://www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the first quarter results can be found at https://www.sap.com/investor About SAP As a global leader in enterprise applications and business AI, SAP (NYSE: SAP) stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit www.sap.com. For more information, financial community only: Alexandra Steiger +49 (6227) 7-767336 investor@sap.com, CET Follow SAP Investor Relations on LinkedIn at SAP Investor Relations. For more information, press only: Joellen Perry +1 (650) 445-6780 joellen.perry@sap.com, PT Daniel Reinhardt +49 (6227) 7-40201 daniel.reinhardt@sap.com, CET For customers interested in learning more about SAP products: Global Customer Center: +49 180 534-34-24 United States Only: +1 (800) 872-1SAP (+1-800-872-1727) Note to editors: To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels. This document contains 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. © 2025 SAP SE. All rights reserved. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see https://www.sap.com/copyright for additional trademark information and notices.
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6/19 SAP Quarterly Statement Q1 2025 Contents (A) Consolidated Income Statements 9 (A.1) Consolidated Income Statements – Quarter................................................................................................................................................................................................. 9 (B) Consolidated Statements of Financial Position 10 (C) Consolidated Statements of Cash Flows 11 (D) Basis of Non-IFRS Presentation 12 (E) Reconciliation from Non-IFRS Numbers to IFRS Numbers 12 (E.1) Reconciliation of Non-IFRS Revenue – Quarter .......................................................................................................................................................................................12 (E.2) Reconciliation of Non-IFRS Operating Expenses – Quarter ........................................................................................................................................................13 (E.3) Reconciliation of Non-IFRS Profit Figures, Income Tax, and Key Ratios – Quarter ...............................................................................................13 (E.4) Reconciliation of Free Cash Flow............................................................................................................................................................................................................................14 (F) Non-IFRS Adjustments – Actuals and Estimates 14 (G) Non-IFRS Operating Expense Adjustments by Functional Areas 14 (H) Segment Reporting 16 (H.1) Segment Policies and Changes.................................................................................................................................................................................................................................16 (H.2) Segment Reporting – Quarter ....................................................................................................................................................................................................................................16 (I) Revenue by Region (IFRS and Non-IFRS) 17 (I.1) Revenue by Region (IFRS and Non-IFRS) – Quarter ...........................................................................................................................................................................17 (J) Employees by Region and Functional Areas 18 (K) Share-Based Payment 19
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7/19 SAP Quarterly Statement Q1 2025 Financial and Non-Financial Key Facts (IFRS and Non-IFRS) € millions, unless otherwise stated Q1 2024 Q2 2024 Q3 2024 Q4 2024 TY 2024 Q1 2025 Revenues Cloud 3,928 4,153 4,351 4,708 17,141 4,993 % change – yoy 24 25 25 27 25 27 % change constant currency – yoy 25 25 27 27 26 26 Cloud ERP Suite 3,167 3,414 3,636 3,949 14,166 4,251 % change – yoy 31 33 34 35 33 34 % change constant currency – yoy 32 33 36 35 34 33 Software licenses 203 229 285 683 1,399 183 % change – yoy –26 –28 –15 –18 –21 –10 % change constant currency – yoy –25 –27 –14 –19 –21 –10 Software support 2,829 2,792 2,793 2,876 11,290 2,761 % change – yoy –3 –3 –3 1 –2 –2 % change constant currency – yoy –1 –3 –2 1 –1 –3 Total revenue 8,041 8,288 8,470 9,377 34,176 9,013 % change – yoy 8 10 9 11 10 12 % change constant currency – yoy 9 10 10 10 10 11 Profits Operating profit (loss) (IFRS) –787 1,222 2,214 2,016 4,665 2,333 Operating profit (loss) (non -IFRS) 1,533 1,940 2,244 2,436 8,153 2,455 % change - yoy 16 33 27 24 25 60 % change constant currency - yoy 19 35 28 24 26 58 Profit (loss) after tax (IFRS) –824 918 1,441 1,616 3,150 1,796 Profit (loss) after tax (non -IFRS) 944 1,278 1,437 1,619 5,279 1,681 % change - yoy 9 60 6 24 22 78 Margins Cloud gross margin (IFRS, in %) 72.2 73.0 73.2 72.8 72.8 74.5 Cloud gross margin (non -IFRS, in %) 72.5 73.3 73.7 73.5 73.3 75.0 Gross margin (IFRS, in %) 71.7 72.6 73.3 74.0 73.0 73.3 Gross margin (non -IFRS, in %) 71.8 72.7 73.6 74.3 73.2 73.6 Operating margin (IFRS, in %) –9.8 14.7 26.1 21.5 13.6 25.9 Operating margin (non -IFRS, in %) 19.1 23.4 26.5 26.0 23.9 27.2 Order Entry and current cloud backlog Current cloud backlog 14,179 14,808 15,377 18,078 18,078 18,202 % change – yoy 27 28 25 32 32 28 % change constant currency – yoy 28 28 29 29 29 29 Share of cloud orders greater than €5 million based on total cloud order entry volume (in %) 52 52 64 68 63 54 Share of cloud orders smaller than €1 million based on total cloud order entry volume (in %) 21 20 16 11 15 20 Liquidity and Cash Flow Net cash flows from operating activities 2,878 1,509 1,403 –584 5,207 3,780 Free cash flow 2,642 1,288 1,200 –908 4,222 3,583 Cash and cash equivalents 9,295 7,870 10,005 9,609 9,609 11,345
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8/19 SAP Quarterly Statement Q1 2025 € millions, unless otherwise stated Q1 2024 Q2 2024 Q3 2024 Q4 2024 TY 2024 Q1 2025 Group liquidity 13,411 11,449 11,856 11,080 11,080 12,760 Financial debt ( –) –7,770 –7,776 –8,996 –9,385 –9,385 –8,121 Net liquidity (+) / Net debt( –) 5,641 3,674 2,860 1,695 1,695 4,639 Non-Financials Number of employees (quarter end) 1 108,133 105,315 107,583 109,121 109,121 108,187 Women in executive roles (in %, quarter end) 21.7 21.9 22.0 22.5 22.5 23.7 Gross greenhouse gas emissions (scope 1, 2, 3 / market -based) 2 (in million tons CO 2 equivalents) 1.8 1.8 1.8 1.8 6.9 1.6 1 In full-time equivalents. 2 Our gross greenhouse gas emissions (GHG) include the total lifecycle emissions resulting from the use of our on-premise software. The calculation of use of sold products emissions is based on the number of active maintenance contracts at quarter end. Therefore, the emissions for individual quarters will not add up to the total sum of GHG emissions at year end.
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9/19 SAP Quarterly Statement Q1 2025 Primary Financial Statements of SAP Group (IFRS) (A) Consolidated Income Statements (A.1) Consolidated Income Statements – Quarter € millions, unless otherwise stated Q1 2025 Q1 2024 ∆ in % Cloud 4,993 3,928 27 Software licenses 183 203 –10 Software support 2,761 2,829 –2 Software licenses and support 2,945 3,031 –3 Cloud and software 7,938 6,960 14 Services 1,075 1,081 –1 Total revenue 9,013 8,041 12 Cost of cloud –1,273 –1,091 17 Cost of software licenses and support –292 –326 –10 Cost of cloud and software –1,565 –1,417 10 Cost of services –841 –862 –2 Total cost of revenue –2,406 –2,279 6 Gross profit 6,607 5,762 15 Research and development –1,673 –1,665 0 Sales and marketing –2,235 –2,278 –2 General and administration –358 –360 –1 Restructuring 0 –2,242 NA Other operating income/expense, net –8 –4 >100 Total operating expenses –6,680 –8,828 –24 Operating profit (loss) 2,333 –787 NA Other non-operating income/expense, net 10 –148 NA Finance income 405 199 >100 Finance costs –280 –244 15 Financial income, net 125 –45 NA Profit (loss) before tax 2,468 –980 NA Income tax expense –672 157 NA Profit (loss) after tax 1,796 –824 NA Attributable to owners of parent 1,780 –828 NA Attributable to non -controlling interests 16 4 >100 Earnings per share, basic (in €) 1 1.52 –0.71 NA Earnings per share, diluted (in €) 1 1.51 –0.71 NA 1 For the three months ended March 31, 2025 and 2024, the weighted average number of shares was 1,167 million (diluted 1,177 million) and 1,167 million (diluted: 1,167 million), respectively (treasury stock excluded).
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10/19 SAP Quarterly Statement Q1 2025 (B) Consolidated Statements of Financial Position as at 03/31/2025 and 12/31/2024 € millions 2025 2024 Cash and cash equivalents 11,345 9,609 Other financial assets 1,638 1,629 Trade and other receivables 7,981 6,774 Other non-financial assets 2,479 2,682 Tax assets 526 707 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 financial assets 7,079 7,141 Trade and other receivables 117 209 Other non-financial assets 3,931 3,990 Tax assets 388 359 Deferred tax assets 2,873 2,676 Total non-current assets 51,661 52,817 Total assets 75,629 74,218 € millions 2025 2024 Trade and other payables 2,210 1,988 Tax liabilities 929 585 Financial liabilities 3,406 4,277 Other non-financial liabilities 4,291 5,533 Provisions 502 716 Contract liabilities 9,211 5,978 Total current liabilities 20,550 19,078 Trade and other payables 6 10 Tax liabilities 550 509 Financial liabilities 6,701 7,169 Other non-financial liabilities 853 749 Provisions 476 494 Deferred tax liabilities 309 313 Contract liabilities 99 88 Total non-current liabilities 8,994 9,332 Total liabilities 29,543 28,410 Issued capital 1,229 1,229 Share premium 2,562 2,564 Retained earnings 44,692 42,907 Other components of equity 3,133 4,694 Treasury shares –5,902 –5,954 Equity attributable to owners of parent 45,713 45,440 Non-controlling interests 373 368 Total equity 46,086 45,808 Total equity and liabilities 75,629 74,218
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11/19 SAP Quarterly Statement Q1 2025 (C) Consolidated Statements of Cash Flows € millions Q1 2025 Q1 2024 Profit (loss) after tax 1,796 –824 Adjustments to reconcile profit (loss) after tax to net cash flows from operating activities: Depreciation and amortization 349 313 Share-based payment expense 420 688 Income tax expense 672 –157 Financial income, net –125 45 Increase/decrease in allowances on trade receivables 11 –22 Other adjustments for non -cash items –9 141 Increase/decrease in trade and other receivables –1,287 –960 Increase/decrease in other assets 161 33 Increase/decrease in trade payables, provisions, and other liabilities –1,073 1,194 Increase/decrease in contract liabilities 3,464 2,990 Share-based payments –193 –143 Income taxes paid, net of refunds –405 –420 Net cash flows from operating activities 3,780 2,878 Business combinations, net of cash and cash equivalents acquired –3 –19 Purchase of intangible assets and property, plant, and equipment –168 –187 Proceeds from sales of intangible assets and property, plant, and equipment 38 27 Purchase of equity or debt instruments of other entities –1,366 –4,248 Proceeds from sales of equity or debt instruments of other entities 1,422 3,297 Interest received 120 144 Net cash flows from investing activities 43 –986 Purchase of treasury shares –125 –432 Proceeds from borrowings 0 1 Repayments of borrowings –1,249 –13 Payments of lease liabilities –68 –78 Interest paid –281 –265 Net cash flows from financing activities –1,723 –787 Effect of foreign currency rates on cash and cash equivalents –365 65 Net increase/decrease in cash and cash equivalents 1,735 1,170 Cash and cash equivalents at the beginning of the period 9,609 8,124 Cash and cash equivalents at the end of the period 11,345 9,295
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12/19 SAP Quarterly Statement Q1 2025 Non-IFRS Numbers (D) Basis of Non-IFRS Presentation SAP disclose certain financial measures such as expense (non-IFRS) and profit measures (non-IFRS) that are not prepared in accordance with IFRS and are therefore considered non-IFRS financial measures. For a more detailed description of all of SAP’s non-IFRS measures and their limitations as well as SAP’s constant currency and free cash flow figures, see Explanation of Non-IFRS Measures. (E) Reconciliation from Non-IFRS Numbers to IFRS Numbers (E.1) Reconciliation of Non-IFRS Revenue – Quarter € millions, unless otherwise stated Q1 2025 Q1 2024 ∆ in % IFRS Currency Impact Non-IFRS Constant Currency IFRS IFRS Non-IFRS Constant Currency Revenue Numbers Cloud 4,993 –58 4,936 3,928 27 26 Software licenses 183 0 183 203 –10 –10 Software support 2,761 –24 2,737 2,829 –2 –3 Software licenses and support 2,945 –25 2,920 3,031 –3 –4 Cloud and software 7,938 –82 7,856 6,960 14 13 Services 1,075 –15 1,060 1,081 –1 –2 Total revenue 9,013 –97 8,916 8,041 12 11
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13/19 SAP Quarterly Statement Q1 2025 (E.2) Reconciliation of Non-IFRS Operating Expenses – Quarter € millions, unless otherwise stated Q1 2025 Q1 2024 ∆ in % IFRS Adj. Non- IFRS Currency Impact Non-IFRS Constant Currency IFRS Adj. Non- IFRS IFRS Non-IFRS Non-IFRS Constant Currency Operating Expense Numbers Cost of cloud –1,273 24 –1,249 –1,091 12 –1,079 17 16 Cost of software licenses and support –292 0 –292 –326 0 –326 –10 –10 Cost of cloud and software –1,565 24 –1,541 –1,417 12 –1,405 10 10 Cost of services –841 1 –840 –862 0 –862 –2 –3 Total cost of revenue –2,406 25 –2,381 –2,279 12 –2,267 6 5 Gross profit 6,607 25 6,632 –68 6,564 5,762 12 5,774 15 15 14 Research and development –1,673 1 –1,672 –1,665 2 –1,663 0 0 Sales and marketing –2,235 95 –2,140 –2,278 64 –2,214 –2 –3 General and administration –358 1 –357 –360 1 –360 –1 –1 Restructuring 0 0 0 –2,242 2,242 0 NA NA Other operating income/expense, net –8 0 –8 –4 0 –4 >100 >100 Total operating expenses –6,680 122 –6,558 62 –6,495 –8,828 2,321 –6,507 –24 1 0 (E.3) Reconciliation of Non-IFRS Profit Figures, Income Tax, and Key Ratios – Quarter € millions, unless otherwise stated Q1 2025 Q1 2024 ∆ in % IFRS Adj. Non- IFRS Currency Impact Non-IFRS Constant Currency IFRS Adj. Non- IFRS IFRS Non-IFRS Non-IFRS Constant Currency Profit Numbers Operating profit (loss) 2,333 122 2,455 –35 2,421 –787 2,321 1,533 NA 60 58 Other non-operating income/expense, net 10 0 10 –148 0 –148 NA NA Finance income 405 –281 124 199 –32 166 >100 –26 Finance costs –280 73 –207 –244 88 –155 15 33 Financial income, net 125 –208 –83 –45 56 11 NA NA Profit (loss) before tax 2,468 –86 2,382 –980 2,377 1,396 NA 71 Income tax expense –672 –29 –701 157 –609 –452 NA 55 Profit (loss) after tax 1,796 –115 1,681 –824 1,768 944 NA 78 Attributable to owners of parent 1,780 –101 1,679 –828 1,768 940 NA 79 Attributable to non -controlling interests 16 –14 2 4 0 4 >100 –54 Key Ratios Operating margin (in %) 25.9 27.2 27.1 –9.8 19.1 35.7pp 8.2pp 8.1pp Effective tax rate (in %) 1 27.2 29.4 16.0 32.4 11.3pp –2.9pp Earnings per share, basic (in €) 1.52 1.44 –0.71 0.81 NA 79 1 The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in Q1 2025 mainly resulted from tax effects of equity securities. The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in Q1 2024 mainly resulted from tax effects of restructuring expenses.
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14/19 SAP Quarterly Statement Q1 2025 (E.4) Reconciliation of Free Cash Flow € millions, unless otherwise stated Q1 2025 Q1 2024 Net cash flows from operating activities 3,780 2,878 Purchase of intangible assets and property, plant, and equipment –168 –187 Proceeds from sales of intangible assets and property, plant, and equipment 38 27 Payments of lease liabilities –68 –78 Free cash flow 3,583 2,642 Net cash flows from investing activities 43 –986 Net cash flows from financing activities –1,723 –787 (F) Non-IFRS Adjustments – Actuals and Estimates € millions, unless otherwise stated Estimated Amounts for Full Year 2025 Q1 2025 Q1 2024 Profit (loss) before tax (IFRS) 2,468 –980 Adjustment for acquisition -related charges 380-460 123 79 Adjustment for restructuring approximately 100 0 2,242 Adjustment for regulatory compliance matter expenses 0 0 0 Adjustment for gains and losses from equity securities, net N/A1 –208 56 Profit (loss) before tax (non -IFRS) 2,382 1,396 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. (G) Non-IFRS Operating Expense Adjustments by Functional Areas € millions Q1 2025 Q1 2024 IFRS Acquisition- Related Restruc- turing RCM1 Non-IFRS IFRS Acquisition -Related Restruc- turing RCM1 Non-IFRS Cost of cloud –1,273 24 0 0 –1,249 –1,091 12 0 0 –1,079 Cost of software licenses and support –292 0 0 0 –292 –326 0 0 0 –326 Cost of services –841 1 0 0 –840 –862 0 0 0 –862 Research and development –1,673 1 0 0 –1,672 –1,665 2 0 0 –1,663 Sales and marketing –2,235 95 0 0 –2,140 –2,278 64 0 0 –2,214 General and administration –358 1 0 0 –357 –360 1 0 0 –360 Restructuring 0 0 0 0 0 –2,242 0 2,242 0 0 Other operating income/expense, net –8 0 0 0 –8 –4 0 0 0 –4 Total operating expenses –6,680 123 0 0 –6,558 –8,828 79 2,242 0 –6,507 1 Regulatory Compliance Matters
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15/19 SAP Quarterly Statement Q1 2025 If not presented in a separate line item in our income statement, the restructuring expenses would break down as follows: € millions Q1 2025 Q1 2024 Cost of cloud 1 –67 Cost of software licenses and support 1 –56 Cost of services 8 –425 Research and development 22 –956 Sales and marketing –21 –622 General and administration –11 –116 Restructuring expenses 0 –2,242
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16/19 SAP Quarterly Statement Q1 2025 Disaggregations (H) Segment Reporting (H.1) Segment Policies and Changes Following organizational changes, SAP has revised its segment structure and is now organized in two operating segments, the Applications, Technology & Support (ATS) segment and the Core Services segment: – The ATS segment represents SAPs cohesive product portfolio which is holistically steered and commercialized. – The Core Services segment supports the SAPs product portfolio by enabling customers to transform their business and accelerate the adoption of innovations. The segment information for comparative prior periods was restated to conform with the new segment composition. (H.2) Segment Reporting – Quarter Applications, Technology & Support (ATS) € millions (non-IFRS) Q1 2025 Q1 2024 Actual Currency Constant Currency Actual Currency Cloud 4,993 4,936 3,928 Software licenses 183 183 203 Software support 2,761 2,737 2,829 Software licenses and support 2,945 2,920 3,031 Cloud and software 7,938 7,856 6,960 Services 80 80 101 Total segment revenue 8,018 7,936 7,061 Cost of cloud –1,209 –1,189 –1,047 Cost of software licenses and support –275 –273 –300 Cost of cloud and software –1,484 –1,462 –1,346 Cost of services –100 –99 –99 Total cost of revenue –1,584 –1,561 –1,445 Segment gross profit 6,434 6,375 5,616 Other segment expenses –3,280 –3,256 –3,315 Segment profit (loss) 3,154 3,119 2,301 Core Services € millions (non-IFRS) Q1 2025 Q1 2024 Actual Currency Constant Currency Actual Currency Services 994 980 979 Total segment revenue 994 980 979 Cost of cloud –29 –29 –26 Cost of software licenses and support –11 –11 –14 Cost of cloud and software –40 –40 –40 Cost of services –718 –713 –733 Total cost of revenue –757 –753 –773 Segment gross profit 237 227 206 Other segment expenses –150 –148 –166 Segment profit (loss) 87 78 41
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17/19 SAP Quarterly Statement Q1 2025 (I) Revenue by Region (IFRS and Non-IFRS) (I.1) Revenue by Region (IFRS and Non-IFRS) – Quarter € millions Q1 2025 Q1 2024 ∆ in % Actual currency Currency Impact Constant Currency Actual currency Actual currency Constant Currency Cloud Revenue by Region EMEA 2,032 –17 2,015 1,557 30 29 Americas 2,231 –39 2,192 1,847 21 19 APJ 731 –2 729 524 39 39 Cloud revenue 4,993 –58 4,936 3,928 27 26 Cloud and Software Revenue by Region EMEA 3,538 –21 3,517 3,109 14 13 Americas 3,209 –58 3,151 2,864 12 10 APJ 1,191 –3 1,187 987 21 20 Cloud and software revenue 7,938 –82 7,856 6,960 14 13 Total Revenue by Region Germany 1,379 –3 1,376 1,237 11 11 Rest of EMEA 2,654 –23 2,631 2,359 12 12 Total EMEA 4,033 –26 4,007 3,596 12 11 United States 2,952 –86 2,866 2,668 11 7 Rest of Americas 713 18 731 669 7 9 Total Americas 3,665 –67 3,598 3,337 10 8 Japan 397 –3 394 325 22 21 Rest of APJ 918 –1 917 783 17 17 Total APJ 1,315 –3 1,311 1,107 19 18 Total revenue 9,013 –97 8,916 8,041 12 11
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18/19 SAP Quarterly Statement Q1 2025 (J) Employees by Region and Functional Areas Full-time equivalents 03/31/2025 03/31/2024 EMEA Americas APJ Total EMEA Americas APJ Total Cloud and software 4,500 4,438 4,924 13,862 4,398 4,266 4,458 13,122 Services 8,173 4,757 5,710 18,639 8,265 4,989 5,509 18,763 Research and development 17,808 5,745 13,348 36,902 18,115 5,935 12,489 36,540 Sales and marketing 11,742 9,869 5,060 26,671 12,302 10,330 5,400 28,032 General and administration 3,759 1,874 1,317 6,949 3,624 1,792 1,307 6,723 Infrastructure 3,054 1,158 952 5,164 2,829 1,252 872 4,953 SAP Group (03/31) 49,035 27,842 31,310 108,187 49,532 28,565 30,036 108,133 Thereof acquisitions 1 - - - - - - - - SAP Group (three months' end average) 48,678 27,709 31,119 107,507 49,404 28,543 29,986 107,934 1 Acquisitions closed between January 1 and March 31 of the respective year.
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19/19 SAP Quarterly Statement Q1 2025 Other Disclosures (K) Share-Based Payment SAP’s share-based payment expenses included in SAPs non-IFRS operating expenses break down as follows: € millions Q1 2025 Q1 2024 Cost of cloud –26 –39 Cost of software licenses and support –7 –12 Cost of services –61 –102 Research and development –136 –212 Sales and marketing –151 –258 General and administration –39 –66 Share-based payment expenses –420 –688 Additionally, in the first quarter of 2025 SAP recognized €13 million (Q1/2024: €82 million) of accelerated share-based payment expenses triggered by the transformation program. These share-based payment expenses are classified as restructuring expenses in SAP’s consolidated income statements. Associated share-based payments in the first quarter of 2025 amounted to €21 million (Q1/2025: €0 million) and are classified as a decrease in provisions and other liabilities in SAP’s consolidated statements of cash flows.