SAP Delivering the Intelligent Enterprise

Transcription

1 SAP Delivering the Intelligent Enterprise Goldman Sachs Seventh German Corporate Conference September 25 th, 2018 Luka Mucic, CFO

2 Safe Harbor Statement Any statements contained in this document that are not historical facts are forwardlooking statements as defined in the U.S. Private Securities Litigation Reform Act of 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 forwardlooking 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 Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. 2

3 Agenda SAP at a glance Delivering the Intelligent Enterprise Financial performance and long-term ambitions Why invest in SAP 3

4 >400,000 companies turning to SAP to accelerate transformation Unmatched global reach and expertise across 25 industries 4

5 SAP is a key pillar of the global economy The world s leading business software company our customers brew more than 77% of the world s beer production our customers produce 79% of the chocolate on this planet our customers distribute more than 76% of healthcare products worldwide 5

6 SAP s strong position in the market #59 market cap largest companies worldwide #1 market cap in the DAX #17 most valuable brand worldwide Achieved goal of 25% women in management 12 th year in a row! Most Sustainable Software Company 6

7 Agenda SAP at a glance Delivering the Intelligent Enterprise Financial performance and long-term ambitions Why invest in SAP 7

8 Intelligent Enterprises elevate employees to focus on higher-value tasks Productivity Industrial Automation Business Process Automation Digital Transformation Intelligent Enterprises High Value Tasks Repetitive Tasks Automation 1960s 1980s 1990s s 2000s s 2010s s Time 8

9 SAP is uniquely positioned to deliver the Intelligent Enterprise Fusing intelligence across the deepest and broadest suite of business applications seamlessly integrated on the most data rich architecture The Intelligent Enterprise features three key components 1. Intelligent Suite SAP Leonardo: Artificial Intelligence Machine Learning Internet of Things Analytics 2. Digital Platform 3. Intelligent Technologies 9

10 C/4HANA manages the entire front office seamlessly in real-time Connects demand to the fulfillment engine in one end-to-end value chain Single, complete view of customer Unified Intelligent User Experience Conversational, Contextual and Intelligent UX Built-in Intelligence SAP Marketing Cloud SAP Commerce Cloud SAP Sales Cloud SAP Service Cloud Market with Intelligence in the Moment Personalized Shopping Experience across Touchpoints Build Relationships and guide Customers throughout their journey Make Customers happy SAP Customer Data Cloud Build Customer Trust and Loyalty 10

11 SAP Leonardo orchestrates disruptive technologies AI, ML, IoT, Blockchain and creates completely new ways of working SAP delivers Leonardo in three ways: SAP Applications Leonardo embedded Industry Innovation Kits Proven Methodology + Innovative Technologies Open Innovation Services Co-created with Customer/Partner Solution Ideation & Vision Rapid Prototyping Integration Blueprint Business Case Development Data Intelligence Analytics Blockchain Internet of Things Machine Learning Big Data SAP Cloud Platform Single platform for all Leonardo innovations 11

12 Digital Platform unlocks data-driven intelligence and innovation Provides the data foundation layer for intelligent applications and extends business processes of the intelligent enterprise suite Unified data management to capture realtime value from different types of data Best-in-class digital platform for new app development, extensions, and integration SAP Data Services SAP CP Big Data Services Integration Services SAP HANA Engines Meta Data & Lifecycle Management SAP Data Hub Object Store (S3, Swift ) SAP HANA Smart Data Integration Data Management Digital Platform Cloud Platform Marketplace SAP Cloud Platform SAP API Business Hub Collaboration Services Mobile Services UX Services Portal Orchestration & Governance 3 rd Party Spark/Hadoop Smart Data Access Streaming Analytics Data Lifecycle Management Big Data Services Leonardo IoT Services API Management Analytics Services Integration Services Security Services SAP Vora Distr. Engines Leonardo ML Services 12

13 Agenda SAP at a glance Delivering the Intelligent Enterprise Financial performance and long-term ambitions Why invest in SAP 13

14 Strong financial performance rapid cloud growth, resilient core and accelerating operating profit FY 2017 H Cloud Subscription Revenue Cloud and Software Revenue Cloud Subscription Revenue Cloud and Software Revenue 3.8bn +28% 19.6bn +8% 2.3bn +36% 9.3bn +10% Total Revenue Operating Profit Total Revenue Operating Profit 23.5bn +8% 6.8bn +4% 11.3bn +10% 2.9bn +13% Share of Predictable Revenue Cloud users / SAP S/4 HANA Customers Share of Predictable Revenue Cloud users / SAP S/4 HANA Customers 63% +2p.p. ~150m/>7,900 68% +2p.p. >160m/>8, All figures based on Non-IFRS and include contributions from the 2018 Callidus Software, Inc. acquisition. Growth rates are at constant currencies.

15 Fast growing cloud organic solutions drive cloud subscription revenue SAP cloud solutions at scale in 2017 and 2020e HCM 3.8bn HANA Enterprise Cloud C/4HANA Concur Ariba +33% CAGR bn HANA Enterprise Cloud Cloud Platform S/4HANA Cloud Digital Supply Chain Analytics Cloud C/4HANA HCM Concur Ariba Fieldglass e Mostly inhouse developed Acquired Gross Margins e Overall Cloud 71% 62% Business Network >80% 77% Public Cloud 70% 57% Private Cloud 40% 6% All figures based on Non-IFRS. Projected 2020 cloud subscriptions and support revenue includes a contribution from the Callidus Software, Inc. acquisition CAGR at constant currencies and based on the midpoint of the SAP 2020 Financial Ambition as published on July 19, 2018 and are repeated here for informational purposes only. This is in no way an update to or reiteration of the outlook and long-term ambitions. 15

16 Share of more predictable revenue increases Delivering a much more resilient and sustainable business model 2017 reported 2020 ambition 37% Other 63% Total Revenue 23.5bn More predictable +7 to +12pp 70 75% More predictable Total Revenue 28 29bn 25 30% Other All figures based on Non-IFRS. More predictable revenue refers to the sum of cloud subscriptions and support revenue and software support revenue as a percentage of total revenue. 16

17 Reaping the benefits of platform investment and scale in the cloud Expanding gross margins and operating leverage (based on midpoint of outlook) 2020 (based on midpoint of outlook) Operating Margin 30.5% (-1.5pp cc) 30.1% (-0.8pp cc) 28.9% (-0.9pp cc) 29.6% cc (+0.8pp cc) 30.7% (+1.1pp) Early stage cloud transition margin headwind > efficiency gains Upfront investments in modernizing and harmonizing acquired cloud infrastructures Mix shift effects from cloud transition Efficiency gains in software and support Entering margin expansion phase Scaling cloud + platform migration New high potential cloud solutions exit start-up phase, ramp margins S&M leverage: declining cost of new business acquisition [2018 H1 total order entry +12%, S&M +7%@cc] + ever higher recurring & transactional revenue base R&D leverage: single code base, away from any DB All figures based on Non-IFRS. percentage point deltas labeled cc (at constant currencies) exclude exchange rate effects outlook includes effects from the application of IFRS 15 (total revenue: substantially less than + 0.1bn; operating profit: approximately + 0.2bn). The implied 2018 and 2020 margin outlook as published on July 19, 2018, is repeated here for informational purposes only. This is in no way an update to or reiteration of the outlook. 17

18 Superior organic growth rates throughout cloud transition Outpacing competition Cloud Subscription Revenue ( bn) Total Revenue ( bn) CAGR +7% CAGR +8% Operating Profit ( bn) CAGR +32% CAGR +31% CAGR +6% 7.5 CAGR +10% (ambition) (ambition) All figures based on Non-IFRS. All CAGRs at constant currencies. CAGRS include contributions from the 2018 Callidus Software, Inc. acquisition and are based on the midpoints of the SAP 2018 Outlook and the SAP 2020 Financial Ambition as published on July 19, 2018 and are repeated here for informational purposes only. This is in no way an update to or reiteration of the outlook and long-term ambitions (ambition) 18

19 Agenda SAP at a glance Delivering the Intelligent Enterprise Financial performance and long-term ambitions Why invest in SAP 19

20 Summary Why invest in SAP SAP s innovation leadership is helping customers win in the digital economy SAP delivers the Intelligent Enterprise an integrated suite of applications with embedded intelligence built on the most advanced in-memory platform available today: SAP HANA With SAP s next generation ERP S/4HANA, customers massively simplify their IT landscape, turn real-time data into actions and reinvent their business models for the digital economy SAP C/4HANA manages customers entire front office seamlessly in real-time SAP Leonardo orchestrates disruptive capabilities: AI/Machine Learning, IoT, Big Data Analytics, Blockchain) SAP Data Hub provides data orchestration and meta data management across heterogeneous data sources SAP is a leader in sustainability Ranked #1 in Dow Jones Sustainability Index for 12th year in a row; Ranked #1 in software industry by oekom Leading the way in innovative reporting: SAP Integrated Report connects both financial and non-financial KPIs since 2012 SAP is outpacing the market SAP s deep industry expertise and broad global footprint provides resilience in an uncertain world SAP offers choice of deployment model (cloud, on premise or hybrid) and seamless integration Growing operating profit and profitability even as we continue to hire in fast growth areas SAP is pushing relentlessly towards a much more predictable business in the long term 20

21 SAP Delivering the Intelligent Enterprise Goldman Sachs Seventh German Corporate Conference September 25 th, 2018 Luka Mucic, CFO