EX-99.1 2 d376140dex991.htm EX-99.1 EX-99.1

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May 17th, 2017 Business Overview Luka Mucic, CFO Exhibit 99.1


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Any statements contained in this document 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 Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Safe Harbor Statement


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€22.1bn 2016 €28–29bn 2020 ambition +9pp to +14pp Support + Cloud subscriptions revenue as share of total revenue All other revenue 2020 ambition – pushing towards a larger more predictable business All figures are non-IFRS


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Driving increased profitability Highly profitable cloud business in the long term 2016 2018 – 2020 Mix shift effects Cloud investments Services margin dampened by strategic co-innovation Cloud investments paying off. Highly standardized “converged platform” drives: Gross margin improvement R&D leverage (away from “any DB”) Cloud overtakes software Efficiency in each business improving and cost ratios start to improve Cloud at scale contributes to profit acceleration through increased share of renewal base 2017 Mix shift effects Cloud investments Services margin improving


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1 Stock-based compensation Other topical issues 2 Restructuring 3 Cash-flow development / use of cash 4 New segment reporting


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Outlook for FY2017 – update on FX impact Cloud subscriptions and support revenue (Non-IFRS at cc) Operating profit (Non-IFRS at cc) Cloud and software revenue (Non-IFRS at cc) Total revenue (Non-IFRS at cc) €23.2 to 23.6bn €5.1bn | + 8 % Actual performance 3M/17 SAP’s outlook FY 2017 While the Company's full-year 2017 business outlook is at constant currencies, actual currency reported figures are expected to continue to be impacted by exchange rate fluctuations. If exchange rates remain at the May 15th, 2017 level for the rest of the year, the Company expects its non-IFRS cloud and software revenue growth rate as well as its non-IFRS operating profit growth rate to experience a currency benefit in a range of 1 to 4 percentage points for Q2 2017. For the full year 2017 we expect a range of 0 to 3 percentage points benefit. This currency impact estimate supersedes the estimate we provided on April 25th, 2017 which was based on March 2017 average exchange rates. [ 2016: €18.43bn] +9% €878m |+30% +6% to 8% €3.8bn to €4.0bn upper end +34% [ 2016: €22.07bn] [ 2016: €6.63bn] €1.1bn |+2% €6.8bn to €7.0bn [ 2016: €2.99bn]