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Why invest in SAP?

View the different aspects of our equity story and understand how we generate long-term value for our shareholders.

How We Create Value

In the digital era, businesses that are able to harness their data faster and more effectively will be the ones that succeed through disruption. SAP is at the heart of the digital transformation of corporates.

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 was an accelerator for digital transformation. Customers are looking to move to the cloud even faster for greater resiliency and agility. SAP will increase R&D investments to help its customers’ transformation accelerate and generate growth in cloud revenue to more than €22 billion in 2025 and expand the share of more predictable revenue to approximately 85%.

We expect our total adressable market to grow to €650 billion in 2025.

For details on our actual results and mid-term ambition please visit the Recent Results 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 required additional investments that impacted 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 and mid-term ambition, please visit the 
Recent Results 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 is perfectly positioned to benefit from the growth drivers and secular trends 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 stands for an attractive and dependable dividend policy, and strives for long-term value creation and shareholder return
  • SAP is a leader in sustainability and supports the 17 UN Sustainable Development Goals

Our Strategy

Today the companies that thrive are the ones that can respond digitally.
SAP is uniquely positioned to help. 

We enable the data economy with seamless, connected business processes for every organization. We help customers transform into intelligent, networked, and sustainable enterprises. 

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

Our Purpose and Promise

At SAP, our purpose is to “help the world run better and improve people’s lives”.
We empower 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.

Our Unmatched Portfolio

SAP software, technologies, and services serve hundred thousands of customers globally. 
Our intelligent enterprise addresses 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.

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