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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.

Q2 and Half-Year 2022 Financial Results

July 21, 2022

"As our Q2 results demonstrate, SAP’s portfolio is more relevant than ever. Our transition to the cloud is ahead of schedule and we have exceeded topline expectations, with cloud revenue becoming SAP’s largest revenue stream. Our pipeline is strong, and we are winning market share underpinned by the very strong 100% growth of S/4HANA current cloud backlog."

Christian Klein, CEO

"This quarter again proves that our strategy is resonating, even in an increasingly challenging external environment. We continued to deliver strong topline growth, exceeding revenue expectations and increasing cloud profitability. This quarter, we have recognized the main impact of the war in Ukraine. We believe that we are now able to capitalize on our substantial growth investments of the last 18 months, by delivering sustained growth and profitability expansion."

Luka Mucic, CFO

Group results at a Glance – Second quarter 2022

  IFRS Non-IFRS1
€ million, unless otherwise stated Q2 2022 Q2 2021 ∆ in % Q2 2022 Q2 2021 ∆ in % ∆ in % const. curr.
Cloud revenue 3,056 2,276 34 3,056 2,276 34 24
Software licenses 426 650 −34 426 650 −34 −38
Software support 2,977 2,823 5 2,977 2,823 5 0
Software licenses and support revenue 3,403 3,474 −2 3,403 3,474 −2 −7
Cloud and software revenue 6,459 5,750 12 6,459 5,750 12 5
Total revenue 7,517 6,669 13 7,517 6,669 13 5
Share of more predictable revenue (in %) 80 76 4pp 80 76 4pp  
Operating profit (loss) 673 984 −32 1,680 1,922 −13 −16
Profit (loss) after tax 203 1,449 −86 1,093 2,214 −51  
Earnings per share - Basic (in €) 0.29 1.15 −75 0.96 1.75 −45  
Earnings per share - Diluted (in €) 0.28 1.15 −75        
Net cash flows from operating activities 268 686 −61        
Free cash flow       −86 403 <-100  
Number of employees (FTE, June 30) 110,409 103,876 6        

1 For a breakdown of the individual adjustments see table “Non-IFRS Adjustments by Functional Areas” in this Quarterly Statement.

Due to rounding, numbers may not add up precisely.

Group results at a Glance – Six months ended June 30, 2022

  IFRS Non-IFRS1
€ million, unless otherwise stated Q1–Q2
2022
Q1–Q2
2021
∆ in % Q1–Q2
2022
Q1–Q2
2021
∆ in % ∆ in %
const.
curr.
Cloud revenue 5,876 4,421 33 5,876 4,421 33 25
Software licenses 743 1,133 −34 743 1,133 −34 −38
Software support 5,900 5,624 5 5,900 5,624 5 0
Software licenses and support revenue 6,643 6,757 −2 6,643 6,757 −2 −6
Cloud and software revenue 12,519 11,178 12 12,519 11,178 12 6
Total revenue 14,594 13,017 12 14,594 13,017 12 6
Share of more predictable revenue (in %) 81 77 4pp 81 77 4pp  
Operating profit (loss) 1,726 1,944 −11 3,358 3,660 −8 −12
Profit (loss) after tax 835 2,519 −67 2,259 3,934 −43  
Earnings per share - Basic (in €) 0.92 2.03 −55 1.96 3.14 −37  
Earnings per share - Diluted (in €) 0.91 2.03 −55        
Net cash flows from operating activities 2,750 3,771 −27        
Free cash flow       2,079 3,251 −36  
Number of employees (FTE, June 30) 110,409 103,876 6        

1 For a breakdown of the individual adjustments see table “Non-IFRS Adjustments by Functional Areas” in this Quarterly Statement.

Due to rounding, numbers may not add up precisely.

Cloud Performance – Second quarter 2022

  IFRS Non-IFRS1
€ millions, unless otherwise stated Q2 2022 ∆ in % Q2 2022 ∆ in % ∆ in %
constant
currency
Current Cloud Backlog          
Total2 NA NA 10,403 34 25
Thereof SAP S/4HANA2 NA NA 2,258 100 87
Cloud Revenue          
SaaS3 2,409 35 2,409 35 24
PaaS4 389 49 389 49 40
IaaS5 257 14 257 14 7
Total 3,056 34 3,056 34 24
Thereof SAP S/4HANA 472 84 472 84 72
Thereof Qualtrics 279 61 279 61 43
Cloud Gross Profit          
SaaS3 1,753 41 1,813 40 28
PaaS4 310 47 310 47 41
IaaS5 70 −12 73 −11 −6
Total 2,132 39 2,196 38 28
Thereof Qualtrics 211 52 247 54 37
Cloud Gross Margin (in %)          
SaaS3 (in %) 72.8 3.1 pp 75.2 2.6 pp 2.6 pp
PaaS4 (in %) 79.5 −1.2 pp 79.6 −1.2 pp 0.5 pp
IaaS5 (in %) 27.1 −8.1 pp 28.5 −8.2 pp −4.6 pp
Total 69.8 2.3 pp 71.9 1.8 pp 2.3 pp
Thereof Qualtrics 75.8 −4.4pp 88.6 −3.8 pp −3.9 pp

1 For a breakdown of the individual adjustments, see table „Non-IFRS Adjustments by Functional Areas” in this Quarterly Statement.

2 As this is an order entry metric, there is no matching IFRS equivalent.

3 Software as a service

4 Platform as a service

5 Infrastructure as a service

Due to rounding, numbers may not add up precisely

Cloud Performance − Six months ended June 30, 2022

  IFRS Non-IFRS1
€ millions, unless otherwise stated Q1-Q2 2022 ∆ in % Q1-Q2 2022 ∆ in % ∆ in %
constant
currency
Current Cloud Backlog          
Total2 NA NA 10,403 34 25
Thereof SAP S/4HANA2 NA NA 2,258 100 87
Cloud Revenue          
SaaS3 4,644 33 4,644 33 25
PaaS4 739 50 739 50 43
IaaS5 492 12 492 12 6
Total 5,876 33 5,876 33 25
Thereof SAP S/4HANA 876 81 876 81 71
Thereof Qualtrics 548 65 548 65 50
Cloud Gross Profit          
SaaS3 3,343 38 3,453 36 27
PaaS4 583 46 583 46 41
IaaS5 129 −13 134 −12 −9
Total 4,054 36 4,170 35 27
Thereof Qualtrics 418 60 489 59 45
Cloud Gross Margin (in %)          
SaaS3 (in %) 72.0 2.3 pp 74.4 1.8 pp 1.6 pp
PaaS4 (in %) 78.8 −1.9 pp 78.8 −2.0 pp −0.9 pp
IaaS5 (in %) 26.2 −7.6 pp 27.3 −7.7 pp −5.0 pp
Total 69.0 1.7 pp 71.0 1.2 pp 1.4 pp
Thereof Qualtrics 76.3 −2.1pp 89.1 −3.2 pp −3.3 pp

1 For a breakdown of the individual adjustments, see table „Non-IFRS Adjustments by Functional Areas” in this Quarterly Statement.

2 As this is an order entry metric, there is no matching IFRS equivalent.

3 Software as a service

4 Platform as a service

5 Infrastructure as a service

Due to rounding, numbers may not add up precisely

Segment Performance Second Quarter 2022

€ million, unless otherwise stated
(Non-IFRS)
Applications, Technology & Services1 Qualtrics
Actual
Currency
∆ in % ∆ in %
const. curr.
Actual
Currency
∆ in % ∆ in %
const. curr.
Cloud revenue 2,704 31 22 279 61 43
Segment revenue 7,109 11 4 330 57 39
Segment profit (loss) 2,094 −11 −15 17 25 45
Cloud gross margin (in %) 69.5 1.3pp 2.0pp 88.6 −3.8pp −3.9pp
Segment margin (in %) 29.5 −7.4pp −6.7pp 5.1 −1.3pp 0.2pp

1 Segment information for comparative prior periods were restated to conform with the new segment composition.

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