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SAP – Delivering the
Intelligent Enterprise
Goldman SachsSeventh German Corporate ConferenceSeptember 25th, 2018
Luka Mucic, CFO
2© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Safe Harbor Statement
Any statements contained in this document that are not historical facts are forward-
looking statements as defined in the U.S. Private Securities Litigation Reform Act of
1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,”
“may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they
relate to SAP are intended to identify such forward-looking statements. SAP undertakes
no obligation to publicly update or revise any forward-looking statements. All forward-
looking statements are subject to various risks and uncertainties that could cause actual
results to differ materially from expectations. The factors that could affect SAP’s future
financial results are discussed more fully in SAP’s filings with the U.S. Securities and
Exchange Commission (“SEC”), including SAP’s most recent Annual Report on Form 20-
F filed with the Securities and Exchange Commission. Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak only as of their
dates.
3© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Agenda
SAP at a glance
Delivering the Intelligent Enterprise
Financial performance and long-term ambitions
Why invest in SAP
4© 2018 SAP SE or an SAP affiliate company. All rights reserved.
>400,000 companies turning to SAP to accelerate transformation –
Unmatched global reach and expertise across 25 industries
5© 2018 SAP SE or an SAP affiliate company. All rights reserved.
SAP is a key pillar of the global economy
The world’s leading business software company
… our customers brew
more than 77% of the
world’s beer production
… our customers distribute
more than 76% of healthcare
products worldwide
… our customers
produce 79% of the
chocolate on this planet
6© 2018 SAP SE or an SAP affiliate company. All rights reserved.
SAP’s strong position in the market
Achieved goal of
25%women in
management
12th year in a row!Most Sustainable
Software Company
#1market cap in the DAX
#17most valuable brand
worldwide
#59market cap
largest companies worldwide
7© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Agenda
SAP at a glance
Delivering the Intelligent Enterprise
Financial performance and long-term ambitions
Why invest in SAP
8© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Intelligent Enterprises elevate employees to focus on higher-value tasks
Industrial
Automation
Business Process
Automation
Digital
Transformation
Intelligent
Enterprises
Productivity
High Value Tasks
Repetitive Tasks
Automation
Time1960s – 1980s 1990s - 2000s 2010s - 2020s2000s - 2010s
9© 2018 SAP SE or an SAP affiliate company. All rights reserved.
The Intelligent Enterprise
features three key components
1. Intelligent Suite
2. Digital Platform
3. Intelligent Technologies
SAP is uniquely positioned to deliver the Intelligent Enterprise
Fusing intelligence across the deepest and broadest suite of business
applications seamlessly integrated on the most data rich architecture
SAP Leonardo: Artificial Intelligence | Machine
Learning | Internet of Things | Analytics
10© 2018 SAP SE or an SAP affiliate company. All rights reserved.
C/4HANA manages the entire front office seamlessly in real-time
Connects demand to the fulfillment engine in one end-to-end value chain
Single, complete view of customer
Unified Intelligent User Experience
Conversational, Contextual and Intelligent UX
SAP Customer Data CloudBuild Customer Trust and Loyalty
SAP Marketing Cloud
Market with Intelligence in the
Moment
SAP Sales Cloud
Build Relationships and guide
Customers throughout their journey
SAP Commerce Cloud
Personalized Shopping Experience
across Touchpoints
SAP Service Cloud
Make Customers happy
Built-in
Intelligence
11© 2018 SAP SE or an SAP affiliate company. All rights reserved.
SAP Leonardo orchestrates disruptive technologies – AI, ML, IoT, Blockchain –
and creates completely new ways of working
SAP delivers Leonardo in three ways:
Internet
of Things
Big Data
Data
Intelligence
Blockchain
Analytics
Machine
Learning
Industry Innovation KitsProven Methodology + Innovative
Technologies
Solution
Ideation
& Vision
Rapid
PrototypingIntegration
Blueprint
Business
Case
Development
Open Innovation ServicesCo-created with Customer/Partner
SAP ApplicationsLeonardo embedded
SAP Cloud PlatformSingle platform for all Leonardo innovations
12© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Digital Platform unlocks data-driven intelligence and innovation
Provides the data foundation layer for intelligent applications and extends
business processes of the intelligent enterprise suite
Data
Management
Cloud
Platform
Digital
Platform
SAP Data Services
Smart Data Access
Smart Data Integration
Streaming Analytics
SAP CP Big Data Services
3rd Party Spark/Hadoop
Object Store (S3, Swift…)
Data Lifecycle Management
Integration Services
Meta Data & Lifecycle Management
Orchestration & Governance
SAP HANA Engines
SAP Vora Distr. Engines
SAP HANA
SAP Data Hub SAP Cloud Platform
SAP API Business Hub
MarketplacePortal
API Management
Mobile Services
Big Data Services
Security Services
Integration Services
UX Services
Collaboration Services
Analytics Services
Leonardo ML Services
Leonardo IoT Services
Best-in-class digital platform for new app
development, extensions, and integration
Unified data management to capture real-
time value from different types of data
13© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Agenda
SAP at a glance
Delivering the Intelligent Enterprise
Financial performance and long-term ambitions
Why invest in SAP
14© 2018 SAP SE or an SAP affiliate company. All rights reserved. 14
Strong financial performance – rapid cloud growth, resilient core and
accelerating operating profit
FY 2017
Cloud Subscription
Revenue
€3.8bn+28%
Cloud and Software
Revenue
€19.6bn+8%
Operating Profit
€6.8bn+4%
Share of Predictable
Revenue
63%+2p.p.
Cloud users / SAP S/4
HANA Customers
~150m/>7,900
Total Revenue
€23.5bn+8%
H1 2018
Cloud Subscription
Revenue
€2.3bn +36%
Cloud and Software
Revenue
€9.3bn +10%
Operating Profit
€2.9bn +13%
Share of Predictable
Revenue
68% +2p.p.
Total Revenue
€11.3bn +10%
Cloud users / SAP S/4
HANA Customers
>160m/>8,900All figures based on Non-IFRS and include contributions from the 2018 Callidus Software, Inc. acquisition. Growth rates are at constant currencies.
15© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Fast growing cloud organic solutions drive cloud subscription revenue
SAP cloud solutions at scale
in 2017 and 2020e
2017 2020e
+33%CAGR
Concur
€3.8bn
HCM
Ariba
€8.2 – 8.7bn
Cloud Platform
S/4HANA Cloud
Digital Supply Chain
HANA Enterprise Cloud Concur
HCM
Ariba
Fieldglass
HANA Enterprise Cloud
Acquired
Mostly in-
house
developed
C/4HANA
Analytics Cloud
C/4HANA
All figures based on Non-IFRS. Projected 2020 cloud subscriptions and support revenue includes a contribution from the Callidus Software, Inc. acquisition.
2017 – 2020 CAGR at constant currencies and based on the midpoint of the SAP 2020 Financial Ambition as published on July 19, 2018 and are repeated here for
informational purposes only. This is in no way an update to or reiteration of the outlook and long-term ambitions.
Overall Cloud
Business Network
Public Cloud
Private Cloud
Gross
Margins 2017 2020e
62%
71%
77%
>80%
57%
70%
6%
40%
16© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Share of more predictable revenue increases
Delivering a much more resilient and sustainable business model
37%
Other 63%
Morepredictable
Total Revenue
€23.5bn
70 –75%More
predictable
25 –
30%Other
Total Revenue
€28 – 29bn
2020ambition
+7 to +12pp
2017reported
All figures based on Non-IFRS. ‘More predictable revenue’ refers to the sum of cloud subscriptions and support revenue and software support revenue as a percentage of total revenue.
17© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Reaping the benefits of platform investment and scale in the cloud
Expanding gross margins and operating leverage
2015 2016 2017 2018(based on midpoint
of outlook)
30.5%
(-1.5pp cc) 30.1%
(-0.8pp cc)28.9%
(-0.9pp cc)
29.6% cc
(+0.8pp cc)
All figures based on Non-IFRS. percentage point deltas labeled ‘cc’ (at constant currencies) exclude exchange rate effects. 2018 outlook includes effects from the application of
IFRS 15 (total revenue: substantially less than +€0.1bn; operating profit: approximately +€0.2bn). The implied 2018 and 2020 margin outlook as published on July 19, 2018, is repeated here
for informational purposes only. This is in no way an update to or reiteration of the outlook.
Operating
Margin
Early stage cloud transition margin
headwind > efficiency gains
▪ Upfront investments in modernizing and
harmonizing acquired cloud infrastructures
▪ Mix shift effects from cloud transition
▪ Efficiency gains in software and support
Entering margin expansion phase
▪ Scaling cloud + platform migration
▪ New high potential cloud solutions exit start-up phase, ramp margins
▪ S&M leverage: declining cost of new business acquisition [2018 H1
total order entry +12%, S&M +7%@cc] + ever higher recurring &
transactional revenue base
▪ R&D leverage: single code base, away from “any DB”
2020(based on midpoint
of outlook)
30.7%
(+1.1pp)
18© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Superior organic growth rates throughout cloud transition
Outpacing competition
20202015 2018
2.3
5.1
8.2 – 8.7CAGR
+32%
CAGR
+31%
2015 2018 2020
20.8
25.1
28.0 – 29.0CAGR
+7%
CAGR
+8%
202020182015
6.3
7.5
8.5 – 9.0CAGR
+6%
CAGR
+10%
Cloud Subscription Revenue(€bn)
Total Revenue(€bn)
Operating Profit(€bn)
All figures based on Non-IFRS. All CAGRs at constant currencies. CAGRS include contributions from the 2018 Callidus Software, Inc. acquisition and are based on the midpoints of the SAP
2018 Outlook and the SAP 2020 Financial Ambition as published on July 19, 2018 and are repeated here for informational purposes only. This is in no way an update to or reiteration of the
outlook and long-term ambitions.
(ambition) (ambition)(ambition)
19© 2018 SAP SE or an SAP affiliate company. All rights reserved.
Agenda
SAP at a glance
Delivering the Intelligent Enterprise
Financial performance and long-term ambitions
Why invest in SAP
20© 2018 SAP SE or an SAP affiliate company. All rights reserved.
SAP’s innovation leadership is helping customers
win in the digital economy
▪ SAP delivers the Intelligent Enterprise – an integrated suite of
applications with embedded intelligence built on the most advanced
in-memory platform available today: SAP HANA
▪ With SAP’s next generation ERP S/4HANA, customers massively
simplify their IT landscape, turn real-time data into actions and
reinvent their business models for the digital economy
▪ SAP C/4HANA manages customers’ entire front office seamlessly in
real-time
▪ SAP Leonardo orchestrates disruptive capabilities: AI/Machine
Learning, IoT, Big Data Analytics, Blockchain)
▪ SAP Data Hub provides data orchestration and meta data
management across heterogeneous data sources
SAP is a leader in sustainability
▪ Ranked #1 in Dow Jones Sustainability Index for 12th year in a
row; Ranked #1 in software industry by oekom
▪ Leading the way in innovative reporting: SAP Integrated Report
connects both financial and non-financial KPIs since 2012
SAP is outpacing the market
▪ SAP’s deep industry expertise and broad global footprint provides
resilience in an uncertain world
▪ SAP offers choice of deployment model (cloud, on premise or
hybrid) and seamless integration
▪ Growing operating profit and profitability even as we continue to
hire in fast growth areas
SAP is pushing relentlessly towards a much more
predictable business in the long term
Summary
Why invest in SAP
SAP – Delivering the
Intelligent Enterprise
Goldman SachsSeventh German Corporate ConferenceSeptember 25th, 2018
Luka Mucic, CFO