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Financial Performance

SAP delivered solid financial results in 2020. Here you will find a summary of key financial performance indicators.

Growth

SAP’s topline exceeded the revised outlook for 2020.

Cloud Revenue (non-IFRS)

Our cloud business continued to grow in 2020, with non-IFRS cloud revenue growing 15% from €7.01 billion in 2019 to €8.09 billion.

Total Revenue (non-IFRS)

Total revenue in 2020 was impacted by the accelerated transition to cloud and the COVID-19 pandemic, decreasing 1% to €27.34 billion (2019: €27.63 billion).

Profitability

SAP’s profit reached the upper end of the revised outlook for 2020.

Operating Margin (non-IFRS)

Non-IFRS operating margin increased 0.6 percentage points compared to last year, in part due to further improvement of our cloud gross margin.

Operating Profit (non-IFRS)

With a disciplined approach to hiring and discretionary spend, while capturing natural savings from lower travel, facility-related costs and virtual events, non-IFRS operating profit in 2020 was €8.29 billion (2019: €8.21 billion), reflecting an increase of 1%.

Comparison of Outlook and Results for 2020

Comparison of Outlook and Results for 2020
  Results
for 2019
Outlook for 2020
(Integrated Report 2019)
Revised Outlook
for 2020
(Q1 Quarterly Statement)
Revised Outlook
for 2020
(Half-Year Report)
Revised Outlook
for 2020
(Q3 Quarterly Statement)
Results
for 2020
Cloud revenue
(non-IFRS, at constant currencies)
€7.01 billion €8.7 billion
to €9.0 billion
€8.3 billion
to €8.7 billion
€8.3 billion
to €8.7 billion
€8.0 billion
to €8.2 billion
€8.24 billion
Cloud and software revenue
(non-IFRS, at constant currencies)
€23.09 billion €24.7 billion
to €25.1 billion
€23.4 billion
to €24.0 billion
€23.4 billion
to €24.0 billion
€23.1 billion
to €23.6 billion
€23,72 billion
Total revenue
(non-IFRS, at constant currencies)
€27.63 billion €29.2 billion
to €29.7 billion
€27.8 billion
to €28.5 billion
€27.8 billion
to €28.5 billion
€27.2 billion
to €27.8 billion
€27,90 billion
Operating profit
(non-IFRS, at constant currencies)
€8.21 billion €8.9 billion
to €9.3 billion
€8.1 billion
to €8.7 billion
€8.1 billion
to €8.7 billion
€8.1 billion
to €8.5 billion
€8,50 billion
Share of predictable revenue 67% 70% 72% 72% 72% 72%
Effective tax rate (IFRS) 26.7% 27.0%
to 28.0%
27.0%
to 28.0%
28.5%
to 29.5%
27.0%
to 28.0%
26.8%
Effective tax rate (non-IFRS) 26.2% 26.5%
to 27.5%
26.5%
to 27.5%
27.5%
to 28.5%
26.5%
to 27.5%
26.5%

 

Shareholder Return

SAP paid an increased dividend (55% payout ratio) and completed a €1.5 billion share buyback program in 2020. While the SAP share priced decreased during 2020, it still has proven a strong investment, with 11% average annual return over the past 10 years.

Dividend per Share

We believe our shareholders should participate in our success. Therefore, we have proposed the dividend be increased by 17% to €1.85 per share (2019: €1.58). The 2020 dividend is pending approval of the Annual General Meeting on May 12, 2021.

Relative Share Price Performance vs. Major Indices

SAP stock declined 10.9% in 2020. With a market capitalization of €131.7 billion, SAP remained the company with the highest market capitalization in the DAX. In 2020, the benchmark indexes DAX 30 and NASDAQ 100 grew 3.5% and 47.1%, respectively.

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