Transcription

Welcome to SAP Capital Markets Day 2019Luka MucicBill McDermottChief Financial OfficerExecutive Board MemberChief Executive OfficerRob EnslinChristian KleinPresident, Cloud Business GroupExecutive Board MemberChief Operating OfficerExecutive Board MemberJennifer MorganJuergen MuellerPresident, Global Customer OperationsAmericas & Asia Pacific JapanExecutive Board MemberChief Technology OfficerExecutive Board MemberAlex AtzbergerPresident, SAP Customer Experience 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC1

Agenda09:30 – 09:35 amWelcomeStefan Gruber, Head of Investor Relations09:35 – 10:05 amStrategy and Vision: Opportunity in Time of DisruptionBill McDermott, CEO10:05 – 10:30 amDelivering the Intelligent EnterpriseChristian Klein and Juergen Mueller, Executive Board Members10:30 – 10:45 amBreak10:45 – 11:15 amSAP C/4HANA Shaking up CRMAlex Atzberger, President SAP Customer Experience11:15 – 11:45 amCustomer PerspectiveHosted by Jennifer Morgan, Executive Board Member11:45 am – 12:10 pmCharting the Course for 2023Luka Mucic, CFO and Executive Board Member12:10 – 12:55 pmQ&A12:55 – 2:00 pmBuffet Lunch Reception02:15 – 03:45 pmBreakout Sessions03:45 – 04:30 pmCoffee and Networking 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC3

Safe Harbour StatementAny statements contained in this document that are not historical facts areforward-looking statements as defined in the U.S. Private Securities LitigationReform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,”“forecast,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similarexpressions as they relate to SAP are intended to identify such forward-lookingstatements. SAP undertakes no obligation to publicly update or revise any forwardlooking statements. All forward-looking statements are subject to various risks anduncertainties that could cause actual results to differ materially from expectations.The factors that could affect SAP’s future financial results are discussed more fullyin 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-lookingstatements, which speak only as of their dates. 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC2

Opportunityin Time of DisruptionBill McDermott, CEO 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC3

SAP: “Structural Incline”Doubled AddressableMarketBe the most innovative cloud company powered by SAP HANAIntelligent EnterprisePublic CloudSAP Business Suitepowered by SAP HANASAP Analytics Cloud Integrated Intelligent SuiteSAP HANA Enterprise CloudLaunched 5.0bn Leading the ExperienceManagement category 3.8bn 3.0bnSybase 0.0bn 0.0bnUNTIL 20102011 0.3bn2012 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 1.1bnCloudRevenue 2.3bn 0.8bn201320142015All figures based on non-IFRS.20162017 Revolutionizing CustomerExperience with C/4HANA Innovation with IntelligentSystems (Leonardo)20184

The fastest growing cloud at scale in business softwareCloud Peer GroupLarge Scale Peer Group40%15%CloudFastest GrowingCloudGrowing fasterthan large scalepeer groupTop lineGrowthTop lineGrowthHighly profitable( 30% Op.Margin)10%0% 15 B 1 BCloud Revenue 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC50%10%Operating MarginSources: Company filings, Factset, Morgan Stanley, Deutsche Bank, Credit Suisse estimates5

Driving sustainable operating profit growthHyperscalerleverageHigher marginServicesHiring disciplineEcosystemIncreased CloudGross MarginKeeping the“Meet orExceed”Promise 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC6

EXPERIENCE MANAGEMENTWinning the experience ceexperiencetouchpoints runon QualtricsDATA MANAGEMENTCloud Platform Data Management AICustomerExperienceSupply %Of the world‘stransactions across25 industries touchSAP systemsDATA 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC7

The SAP “Top Ten”Winning Strategy1. X O: Experience Management (X)Meets Intelligent Enterprise (O)2. Next Gen CRM: C/4 S/4 End-to-End3. Industry 4.0: Next-Gen Manufacturingand Supply Chain2023 Growth Ambition6. #1 in Experience Management7. Fastest Growing in CustomerExperience8. #1 in Cloud ERP9. #1 in Cloud Workforce Management4. Automation and Augmented Humanity:SAP Leonardo Everywhere10. Global Standard in Business Networks:Trillions in Commerce5. New Skills, Flexible Workforce: SAPSuccessFactors SAP Fieldglass 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICBased on financial analyst commentary following disclosure of SAP’s Q4 2018 results8

DELIVER theIntelligent EnterpriseChristian Klein (COO) and Juergen Mueller (CTO)Executive Board Members 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC9

The Intelligent Enterprise by SAP – ONE Seamless Customer ExperienceSEAMLESS CUSTOMER EXPERIENCEMarketingSalesEmployeeEngagement 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ perateNetwork &Spend Management10

The Intelligent Enterprise by SAP – ONE Seamless Customer ExperienceSEAMLESS CUSTOMER Engagement 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ uringManufacture& Supply ChainDeliverOperateNetwork & SpendManagement11

Intelligent Business Processes With SAP LeonardoCustomerExperienceManufacturing &Supply ChainEmployeeEngagementBig DataDigital CoreMachineLearningNetwork & SpendManagementBlockchainInternetof ThingsSAP Leonardo 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC12

We Empower Decision Makers with End-to-End Real Time Steering%%%%%%%%%Real time steering across the value chainReporting Predictive Analytics Integrated PlanningCustomerExperienceManufacturing &Supply ChainEmployeeEngagementDigital CoreNetwork & SpendManagementSAP Cloud Platform powered by HANA 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC13

The Intelligent EnterpriseDigital CoreEmployeeEngagementNetwork & SpendManagementIntelligent SuiteCustomerExperienceIntelligent TechnologiesManufacturing &Supply ChainSAP LeonardoDigital PlatformData Management 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICCloud Platform14

Adoption of SAP S/4HANA is kicking in by offering unique potential acrossall Lines of Business.SAP S/4HANA Adoption10,500 # of licensed customersLicensed customers10,500 Ahead of R/3Adoption40%Net new customer share1322015AcceleratedCloud Growth2016 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC201720182019in Finance and Professional Services15

The Intelligent EnterpriseDigital CoreEmployeeEngagementManufacturing &Supply ChainIntelligent SuiteCustomerExperienceIntelligent TechnologiesNetwork & SpendManagementSAP LeonardoDigital PlatformData Management 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICCloud Platform16

SAP C/4HANAShaking up CRMAlex Atzberger, President SAP Customer [email protected]#BeBold 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC17

We live in aExperience Economy%80of customers have chosento switch brands due to apoor customer experience1 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2.5TImpact of yearly loss of trust dueto abuse of data privacy andbrand loyalty2 100BEstimated market size for customerexperience solutions, platform andintegration to operational systems31 Bain 2 Adweek 3 SAP CMI Model18

CRM has evolved into Customer Experience management platformsLegacy CRMCX SuitesTransactional dataOperational Experience dataSiloed view and processes withfocus on sales force automationSeamless end-to-end journeys designedaround customer across all channelsCustomer privacy not in scopePrivacy built-inMonolithic platformsMicroservices-driven agile platform 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC19

SAPC/4HANAMarketingCloud2.8 BillionpersonalizationsServiceCloud61 millionService Tickets5 Clouds and 7 Suite AttributesCommerceCloudSalesCloud5 millionSales Professionals5-year Gartner MQ LeaderCustomer Data Cloud1 Billion consent profilesHarmonizedUser ExperienceEnd-to-EndProcesses 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICBusiness and MasterData ServicesSuite Intelligenceand AnalyticsPlatformServicesExtensibilityand IntegrationOpen Ecosystem20

Best-of-Breed: Recognized product leadershipGartner Front Runners forField ServicesIDC MarketScape AI inEnterprise Marketing CloudsForrester Wave for B2CCommerce SuitesGartner Magic Quadrant forConfigure, Price, Quote 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICForrester Wave for B2BCommerce SuitesForrester Wave forConfigure, Price, QuoteForrester Wave forCustomer Identity MgmtGartner Magic Quadrant forMultichannel MarketingIDC MarketScape LeaderSubscription RelationshipManagementGartner Magic Quadrant forSales PerformanceManagement21

Best-of-Suite: Most complete portfolioSalesService 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICMarketingCommerceCustomer sOpen DataInitiativeX Data &O Data22

Market Leadership: SAP is LEADING Customer ExperienceDigital Commerce1#1#3#4CRM1#2#1#3Experience Management2#1n/an/aSource:(1) Gartner Enterprise Application Market Share Q12018, May 2018(2) Qualtrics S1 filing 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC23

Momentum is gaining Opportunity is vast Cloud Growth 170% YoYQ4 10,000 customers use either oneor multiple C/4HANA solutionsQ3Q2Q1 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10M users from sales, service tomarketing professions Close to 4,000 SAP CRMcustomers remain On-premisetoday Largest addressable enterprise appmarket, least penetrated market bySAP24

The SAP AdvantageExperienceSAP C/4HANA Qualtricsallow customers to put thecustomer at the center oftheir business and engageacross all channels with thecustomer 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICTrustSAP C/4HANA provides asingle view of the customerbased on consent-drivencustomer dataIntegrationSAP C/4HANA S/4HANAare an integrated suiteresulting in lower integrationcosts and smarter end-toend processes that connectdemand chain to thecompany’s operational core25

Lorenz Gan - CIO New Era

Customer PerspectiveHosted by Jennifer MorganPresident, Global Customer Operations Americas and Asia Pacific JapanExecutive Board Member 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC27

Alex ChatkewitzChief Accounting Officerand Controller 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICSara Baxter OrrCFO Verizon Wireline28

Charting the Coursefor 2023Luka Mucic, CFO and Executive Board Member 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC29

We’ve Come a Long WayDoubled AddressableMarketBe the most innovative cloud company powered by SAP HANAIntelligent EnterprisePublic CloudSAP Business Suitepowered by SAP HANA Integrated Intelligent SuiteSAP Analytics CloudSAP HANA Enterprise CloudLaunched 5.0bn Leading the ExperienceManagement category 3.8bn 3.0bnSybase 0.0bn 0.0bnUNTIL 20102011 0.3bn2012 1.1bnCloudRevenue 2.3bn 0.8bn2013201420152016 Revolutionizing CustomerExperience with SAPC/4HANA Innovation with IntelligentSystems (SAP Leonardo)20182017Software oftware 10bn37%SoftwareMorePredictable 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC65%MorePredictable80%2018 25bnMorePredictable2023 35bnSupportAll figures based on non-IFRS. Amounts in doughnut charts represent total revenue.2023 figures based on SAP’s 2023 ambition30

Staying our Course, Keeping our PromisesCloud RevenueCloud & SoftwareRevenue (growth)20152016 1.95 – 2.05bn 2.95 – 3.05bn 3.8 – 4.0bn 4.95 – 5.15bn 2.0bn 3.0bn 3.8bn 5.2bn 8% – 10% 6% – 8% 6% – 8% 6.5% – 8.5% 12% 8% 8% 10% 23.2 – 23.6bn 24.8 – 25.3bn 23.8bn 26.0bnTotal RevenueOperating Profit 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC20172018 5.6 – 5.9bn 6.4 – 6.7bn 6.8 – 7.0bn 7.35 – 7.50bn 5.9bn 6.6bn 6.9bn 7.5bnOutlook ( bn)Actual ( bn)All figures based on non-IFRS, at constant currencies. Outlooks as provided in January of corresponding year, except 2018 (outlook as of April to reflect Callidus acquisition)31

Increasing Our Ambition2020 Ambition2020 Ambitionas of January 2015as of January 2019 Cloud Revenuein a range of 7.5 – 8.0bn 1.1bn Cloud Revenuein a range of 8.6 – 9.1bn 1.9bn Total Revenuein a range of 28.6 – 29.2bn 0.3bn Operating Profitin a range of 8.5 – 9.0bn Total Revenuein a range of 26.0 – 28.0bn Operating Profitin a range of 8.0 – 9.0bn 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICAll figures based on Non-IFRS. Ambition increases based on intervals’ midpoints.32

Cash MattersRestructuringDSO upside potentialOperating CashFlow5.0bn 4.6bn 4.3bn SBC payoutsTaxKey incrementaleffects on cash flow:Insurance PaymentsCurrencySBC payouts (Qualtrics)RestructuringTaxInterest (Qualtrics)DSO upside potentialIFRS 16 ationpayouts201720182019e2020e2019e2020e1.0bn 0.8bn 0.6bn 2016 2019 SAP SE or an SAP affiliate company. All rig