First Quarter 2020 Financial Highlights

SAP SE April 21, 2020

SAFE HARBOR STATEMENT

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.

SOLID START TO 2020 AMIDST COVID-19 CRISIS TOTAL REVENUE AND OPERATING PROFIT UP

The share of more predictable revenue reached 76%in the first quarter of 2020 (+4 percentage points)

OTHER FINANCIAL AND NON-FINANCIAL HIGHLIGHTS FIRST QUARTER 2020

Cloud revenue exceeds €2.0bn for the first time in a quarter +29% (IFRS), +27% (non-IFRS), +25% (non-IFRS cc)
Current cloud backlog: +25% (+24% cc) to €6.65bn
Cloud gross margin (non-IFRS): +3 pp to 69.3%
Earnings per share (non-IFRS): -5% to €0.85
Operating cash flow up 6% to €2.98bn | Free cash flow up 9% to €2.58bn
Approximately 14,100 S/4HANA customers
Greenhouse gas emissions at 65kt
Overall employee retention rate remains high at 93.3%
Women in management increased to 26.8%

INCOME STATEMENT FIRST QUARTER 2020

		IFRS			Non-IFRS
€ millions, unless otherwise stated	Q1/20	Q1/19	∆ %	Q1/20	Q1/19	∆ %	∆ % at cc
Cloud	2,011	1,555	29	2,012	1,581	27	25
Software licenses	451	650	-31	451	650	-31	-31
Software support	2,934	2,838	3	2,934	2,838	3	2
Software licenses and support	3,386	3,489	-3	3,386	3,489	-3	-4
Cloud and software	5,397	5,044	7	5,398	5,070	6	5
Services	1,124	1,048	7	1,124	1,048	7	6
Total revenue	6,521	6,091	7	6,522	6,118	7	5
Total operating expenses	-5,311	-6,228	-15	-5,040	-4,651	8	7
Operating profit (loss)	1,210	-136	<-100	1,482	1,467	1	0
Financial income, net	-39	0	>100	-39	0	>100
Profit (loss) before tax	1,122	-140	<-100	1,394	1,463	-5
Income tax expense	-310	33	<-100	-379	-383	-1
Profit (loss) after tax	811	-108	<-100	1,015	1,080	-6
Operating margin (in %)	18.6	-2.2	20.8pp	22.7	24.0	-1.3pp	-1.3pp
Earnings per share, basic (in €)	0.68	-0.10	<-100	0.85	0.90	-5

REGIONAL PERFORMANCE FIRST QUARTER 2020

Cloud revenue

AMERICAS

+24% +21% cc

Cloud and software revenue

+9% +7% cc

Canada and Brazil were highlights in cloud revenue. Mexico and Brazil had a strong quarter in software licenses revenue.

Cloud revenue +35%

EMEA

+34% cc

Cloud and software revenue

+7% +6% cc

Germany and the Netherlands were highlights in cloud revenue. France, Italy and Switzerland had a strong quarter in software licenses revenue. Cloud revenue +25% +24% cc

APJ

Cloud and software revenue +1%

+0% cc

Japan and South Korea were highlights in cloud revenue. Japan and Australia hat a solid quarter in software licenses revenue.

Revenues calculated based on customer location; All numbers are Non-IFRS unless otherwise stated Individual country highlights are based on Non-IFRS at constant currencies

GROSS MARGIN DEVELOPMENT

CLOUD GROSS MARGIN UP 3 PERCENTAGE POINTS YOY

Non-IFRS, in percent as reported	FY/18	Q1/19	Q2/19	Q3/19	Q4/19	FY/19	Q1/20
Cloud	63.1	66,2	67,9	69,0	69,5	68.2	69.3
Intelligent Spend	77.8	78,0	78,2	78,0	78,0	78.1	78.8
Private Cloud (IaaS)	12.2	31,8	22,3	25,3	36,3	29.1	31.0
Public Cloud (SaaS/PaaS)	60.0	63,8	68,8	70,4	70,0	68.4	70.2
Software Licenses & Support	87.4	85,7	87,1	87,6	88,8	87.5	85.7
Cloud & Software	81.5	79,6	81,1	81,7	83,5	81.6	79.6
Services	22.9	20,3	23,9	26,9	28,0	24.9	22.8
Total Gross Margin	71.8	69,5	71,4	72,3	75,3	72.3	69.8

OPERATING PROFIT FIRST QUARTER 2020

Non-IFRS

Non-IFRS operating profit (loss) +1% to €1,482m (Q1/19: €1,467m) +0% to €1,462m at cc
Non-IFRS operating margin -1.3pp to 22.7% (Q1/19: 24.0%) -1.3pp to 22.7% at cc
IFRS operating profit (loss) <-100% to €1,210m (Q1/19: €-136m)
IFRS operating margin +20.8pp to 18.6% (Q1/19: -2.2%)

€6.5bn Total revenue, Non-IFRS

BALANCE SHEET CONDENSED

March 31, 2020 - IFRS

Assets			Equity and liabilities
€ millions	3/31/20	12/31/19	€ millions	3/31/20	12/31/19
Cash, cash equivalents and other financial assets	8,174	5,612	Trade and other payables	1,458	1,581
		7,908	Provisions	162	268
Trade and other receivables	7,280		Other liabilities	9,121	8,347
Other current assets	1,879	1,694	Contract liabilities, current	6,726	4,266
Total current assets	17,333	15,213	Total current liabilities	17,467	14,462
Goodwill	29,731	29,159	Financial liabilities	12,507	12,923
			Provisions	636	478
Intangible assets	4,400	4,491	Contract liabilities, non-current	81	89
Property, plant, and equipment	5,383	5,496	Other non-current liabilities	1,486	1,439
Other non-current assets	6,100	5,853	Total non-current liabilities	14,710	14,929
			Total liabilities	32,177	29,390
Total non-current assets	45,614	44,999	Total equity	30, 770	30,822
Total assets	62,947	60,212	Total equity and liabilities	62,947	60,212

OPERATING CASH FLOW AND FREE CASH FLOW

€ millions, unless otherwise stated	Q1/20	Q1/19	∆
Operating cash flow	2,984	2,802	+6%
- Capital expenditure	-333	-359	-7%
- Payments of lease liabilities	-72	-78	-8%
Free cash flow	2,580	2,365	+9%
Free cash flow in percent of total revenue	40	39	+1pp
Free cash flow conversion rate	3.18	-21.98	+25.16
Days sales outstanding (DSO in days, March 31)	73	69	4

NET DEBT

Net Liquidity = cash and cash equivalent plus current time deposits and debt securities minus financial debt

Other = mainly purchase and sales of equity or debt instruments of other entities, proceeds from sales of non-current assets, and effects of foreign currency rates on cash and cash equivalents – for more information see our 2019 integrated report

ADDITIONAL OUTLOOK INFORMATION AND NON-IFRS ADJUSTMENTS

The Company continues to expect a full-year 2020 effective tax rate (IFRS) of 27.0% to 28.0% (2019: 26.7%) and an effective tax rate (non-IFRS) of 26.5% to 27.5% (2019: 26.2%)

Non-IFRS adjustments	Actual Amounts Q1/19	Actual Amounts Q1/20	Est. Amounts for FY/20
Revenue adjustments	€26m	€1m	€0m to €30m
Acquisition-related charges	€174m	€162m	€580m to €690m
Share-based payment expenses	€517m	€93m	€1,200m to €1,600m
Restructuring charges	€886m	€15m	€20m to €40m
Sum of all adjustments	€1,603m	€272m	€1,800m to €2,360m

2020 OUTLOOK UPDATED TO REFLECT THE ESTIMATED IMPACT OF THE COVID-19 CRISIS

2019 Actuals (Non-IFRS)

Cloud Revenue €7.01bn

Cloud & Software Revenue €23.09bn

Total Revenue €27.63bn

Operating Profit €8.21bn

2020 Outlook (Non-IFRS @cc)

Cloud Revenue in a range of €8.3 – 8.7bn Growth: 18.0% to 24.0%

Cloud and Software Revenue in a range of €23.4 – 24.0bn Growth: 1.0% to 4.0%

Total Revenue in a range of €27.8 – 28.5bn Growth: 1.0% to 3.0%

Operating Profit in a range of €8.1 – 8.7bn Growth: -1.0% – 6.0%

Share of more predictable revenue to reach approx. 72%

2023 Ambition (Non-IFRS)

More than triple Cloud Revenue

More than €35.0bn Total Revenue

Reach a Cloud gross margin of 75%

Increase Operating margin by 1pp per year on average*, representing a total expansion of approx. 500bp

Share of more predictable revenue approaching 80%

* from 2018 through 2023

EXPECTED CURRENCY IMPACT 2020 Q2 AND REST OF THE YEAR

Expected Currency Impact 2020 Based on March 2020 Level for the Rest of the Year
in percentage points	Q2	FY
Cloud Revenue	+2pp to +4pp	-1pp to +1pp
Cloud and software	+1pp to +3pp	-1pp to +1pp
Operating profit	+1pp to +3pp	-1pp to +1pp

INTERNAL Appendix

SAP S/4HANA CUSTOMER COUNT BASED ON UPDATED DEFINITION

Main categories added include Digital Supply Chain Management and Finance and Risk Management. This change affected the S/4HANA customer count as the customers of the added categories (as far as not also S/4HANA customer) have been included in the S/4HANA customer number. Prior period customer count numbers have been adjusted to conform with the updated definition.

Q1 2020 – KEY CLOUD METRICS

All figures are Non-IFRS and growth rates at constant currencies unless otherwise stated

Cloud Revenue	Cloud Backlog1 Current	Global Commerce2	Cloud Applications Total Subscribers
+25% €2,012m	+24% €6.65bn	>\$3.7 trillion	~218m
Concur – Segment Revenue	Qualtrics – Segment Revenue	Number of end users book travel and/or process expense with SAP Concur	Flexible workers managed with SAP Fieldglass platform
+11% €428m	+76% €161m	>66m	6.8m

1) Current Cloud Backlog replaces our previous disclosure of 'New Cloud Bookings'. The 'Current Cloud Backlog' or CCB for short gives you the contractually committed cloud revenue we expect to recognize over the upcoming twelve months. The CCB is thus a subset of our Remaining Performance Obligations: Cloud only and 12 months only. Its expansion between two key dates reflects our success in both, contracting new cloud business as well as renewing existing business. So compared to New Cloud Bookings, it is a better, more holistic indicator of our cloud progress.
2) Global commerce is the total commerce volume transacted on the SAP Ariba, SAP Concur and SAP Fieldglass Networks in the trailing 12 months. SAP Ariba commerce includes procurement and sourcing spend

INTERNAL First Quarter 2020 Financial Highlights