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Investment Story

In the digital era, businesses that are able to harness their data faster and more effectively will be the ones that succeed through disruption.

Corporate Strategy

Today the companies that thrive are the ones that can respond digitally. SAP is uniquely positioned to help. We can enable the data economy with seamless, connected business processes for every organization. We help customers transform into intelligent, sustainable enterprises — companies enabled by integrated, digital business processes, powered by experience data, with embedded AI continually tuned to drive more sustainable outcomes.

We enable all our partners and customers to come together as part of the world’s largest business network — a worldwide marketplace that connects millions of intelligent, sustainable enterprises.

Our Purpose and Promise

At SAP, our purpose is to “help the world run better and improve people’s lives” by empowering our customers to create a better economy, society, and environment for the world. 

In line with our purpose, we are committed to supporting the United Nations Sustainable Development Goals (UN SDGs). Technology-driven innovation underpins how SAP, together with our customers and our partner ecosystem, can execute initiatives across all 17 of the UN SDGs. Our goal is to lead the evolution of technology while also helping ensure that the focus remains on taking responsibility for its outcomes and societal effects.

Portfolio

Our software, technologies, and services serve hundred thousands of customers globally and address three core elements of the intelligent enterprise for 25 industries and 12 lines of business:

SAP has the unparalleled technologies, products, footprint and vision to weave together the four essential end to end business process — Recruit to Retire, Source to Pay, Design to Operate and Lead to Cash — to create not just one intelligent enterprise, but a worldwide ecosystem of them.

SAP is the only company whose technology can reach into all of those processes to create a clear organizational view that dials down into the millions of daily interactions that make up a company, an industry, and a global network.

We enable this by implementing, extending and integrating our solution areas into a holistic platform — SAP Business Technology Platform: Human Experience Management, Intelligent Spend Management, Customer Experience, and our flagship SAP S/4HANA solutions. Further, we will continue to invest in new growth categories such as Business Network, Business Process Intelligence, and Sustainability.

Value Creation

The digital transformation of the global economy is in full swing, and SAP’s broad solution portfolio and innovation strategy are playing a key role in this evolution. Though current macroeconomic uncertainties are holding back individual countries and sectors, the majority of enterprises is taking advantage of the latest technological developments to restructure their business models, win market share, and increase efficiency.

SAP’s innovative applications and our offerings for next-generation technologies such as machine learning, AI, blockchain, and the IoT are convincing more customers of the power and efficiency of our portfolio and our technology platform. We also offer our customers unparalleled flexibility options for using our software – on premise, in the cloud, or hybrid. 

The COVID-19 crisis is an accelerator for transformation. Customers are looking to move to the cloud even faster for greater resiliency and agility. SAP is responding to these market demands by accelerating the modernization of its cloud delivery, arriving at a harmonized delivery infrastructure earlier than planned. Furthermore, SAP will increase R&D investments to help its customers’ transformation accelerate and generate growth in non-IFRS cloud revenue to more than €22 billion in 2025 and expand the share of more predictable revenue to approximately 85%.

For details on our actual results please visit the Recent Results page. For our 2022 outlook and the mid-term ambition until 2025 please visit the Outlook & Ambition page.

Our transformation to a fast-growing cloud business demands significant investments. We see operating expenses largely as investments in the future that will help secure our operating profit in the long term. Nevertheless, we continue to see the benefits from increasing efficiency of our cloud offerings, demonstrated by the increasing cloud gross margin. 

The increasing customer demand for SAP Cloud solutions require additional investments that will have an impact on our operating margin in 2021 and 2022. Our expedited move to the cloud will ensure we continue our path as a cloud growth company while we remain focused on cost efficiency. These actions and our resilient business model position us well to meet our new ambition targets as uncertainty recedes.

For details on our actual results please visit the Recent Results page. For our 2022 outlook and the mid-term ambition until 2025 please visit the Outlook & Ambition page.

Our primary source of cash, cash equivalents, and current investments is funds generated from our business operations. Over the past several years, our principal use of cash has been to support operations and our capital expenditure requirements resulting from our growth, to quickly repay financial debt, to acquire businesses, to pay dividends on our shares, and to buy back SAP shares on the open market. In recent years, we were able to repay additional debt within a short period of time due to our persistently strong free cash flow.

We believe that our liquid assets combined with our undrawn credit facilities are sufficient to meet our operating financing needs and, together with expected cash flows from operations, will support debt repayments, currently planned capital expenditure requirements, and capital returns to our shareholders over the near term and medium term.

The primary objective of our capital structure management is to maintain a strong financial profile for investor, creditor, and customer confidence, and to support the growth of our business. We seek to maintain a capital structure that will allow us to cover our funding requirements through the capital markets at reasonable conditions, and in so doing, ensure a high level of independence, confidence, and financial flexibility.

The long-term credit rating for SAP SE is “A2” by Moody’s and “A” by Standard & Poor’s, both with a stable outlook. 

SAP has earned shareholder trust through an attractive Total Shareholder Return on the short, medium, and long term. In addition, with our dividend policy of at least 40% of profit after tax and continued payout since IPO in 1988, we show our commitment to our shareholders.

  • SAP is perfectly positioned to benefit from the massive growth drivers in the market
  • SAP shows high resilience through global diversification and broad industry coverage
  • SAP is highly successful with a stable, predictable and sustainable business model
  • SAP is a leader in sustainability and supports the 17 UN Sustainable Development Goals
  • SAP stands for an attractive and dependable dividend policy, and strives for excellent shareholder return

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