Business Outlook 2022
April 22, 2022 — SAP is executing on its cloud-led strategy, which is driving accelerating cloud growth through both new business and cloud adoption by existing customers. The pace and scale of SAP’s cloud momentum places the Company well on track towards its mid-term ambition.
For 2022, SAP now expects:
- €11.55 – 11.85 billion cloud revenue at constant currencies (2021: €9.42 billion), up 23% to 26% at constant currencies.
- €25.0 – 25.5 billion cloud and software revenue at constant currencies (2021: €24.08 billion), up 4% to 6% at constant currencies.
- €7.8 – 8.25 billion non-IFRS operating profit at constant currencies (2021: €8.23 billion), flat to down 5% at constant currencies.
- The share of more predictable revenue (defined as the total of cloud revenue and software support revenue) is expected to reach approximately 78% (2021: 75%).
- Free cash flow above €4.5 billion (2021: €5.01 billion).
- SAP now expects a full-year 2022 effective tax rate (IFRS) of 28.0% to 32.0% (previously: 25.0% to 28.0%) and an effective tax rate (non-IFRS) of 23.0% to 27.0% (previously: 22.0% to 25.0%). The increase of the effective tax rate outlook mainly reflects an updated projection of the 2022 financial income contribution of Sapphire Ventures in light of current market conditions.
While SAP’s full-year 2022 business outlook is at constant currencies, actual currency reported figures are expected to be impacted by currency exchange rate fluctuations as the Company progresses through the year. See the table below for the Q2 and FY 2022 expected currency impacts.
Expected Currency Impact Assuming March 2022 Rates Apply for the Rest of the Year
| In percentage points | Q2 2022 | FY 2022 |
| Cloud revenue growth | +7pp to +9pp | +5pp to +7pp |
| Cloud and software revenue growth | +4pp to +6pp | +3pp to +5pp |
| Operating profit growth (non-IFRS) | +4pp to +6pp | +3pp to +5pp |
Ambition for Non-Financial Performance
In 2022 SAP expects:
- a Customer Net Promoter Score of 11 to 15 (2021: 10)
- an Employee Engagement Index in a range of 84% to 86% (2021: 83%)
- Net carbon emissions of 70 kt (2021: 110 kt)
Ambition 2025
SAP confidently reiterates its mid-term ambition published in its Q3 2020 Quarterly Statement. By 2025, SAP continues to expect:
- More than €22 billion cloud revenue.
- More than €36 billion total revenue.
- More than €11.5 billion non-IFRS operating profit.
- A non-IFRS cloud gross margin of approximately 80%.
- A significant expansion of the Company’s more predictable revenue share to approximately 85%.
- A free cash flow of approximately €8 billion.
For non-financial performance SAP aims in 2025 for:
- Maintaining Employee Engagement Index between 84% and 86% (2021: 83%).
- Steadily increasing the Customer Net Promoter Score through 2025 (2021: 10).
- Achieving net carbon emissions of 0 kt by 2023 and maintaining net carbon emissions in our own operations of 0 kt from that point onward. Further, SAP has also committed to achieve net-zero along our value chain in line with a 1.5°C future in 2030 – 20 years earlier than originally targeted.
Any statements contained on this page 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 SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.