SAP SE

Quarterly Report • Apr 24, 2018

First Quarter 2018 Financial Highlights

Walldorf, Germany Tuesday, April 24, 2018

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 forwardlooking 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.

Income Statement

Balance Sheet and Cash Flow Analysis Outlook and Additional Information Appendix

Key performance metrics Q1 2018

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4

Regional performance Q1 2018

Americas	EMEA	APJ
Cloud subscriptions	Cloud subscriptions	Cloud subscriptions
and	and	and
support	support	support
revenue	revenue	revenue
7%	40%	38%
+22% cc	+45% cc	+53% cc
Cloud and	Cloud and	Cloud and
software	software	software
revenue	revenue	revenue
-5%	6%	0%
+10% cc	+9% cc	+10% cc
In Q1, Brazil had a strong performance in cloud revenue. North America had double-digit license growth in software revenue	In Q1, Germany had strong cloud revenue growth. UK had double-digit software revenue growth	In Q1, China and Japan had very strong cloud revenue growth. Australia, China and India had great performances with double-digit growth in software 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

Key cloud metrics Q1 2018

Q1/18 unless otherwise stated Cloud Subscriptions and Support Revenue +31% €1,072m New Cloud Bookings¹ +25% €245m Cloud Subscriptions and Support Backlog² €7.2bn +27% Cloud Applications Total Subscribers ~156m SAP Business Network – Segment Revenue* €663m +17% Total Network Commerce³ >\$1.9 trillion Number of end users processing travel and expense with Concur >50m All figures are Non-IFRS and growth rates at constant currencies unless otherwise stated * Cloud subscriptions and support revenue Flexible workers managed with Fieldglass platform >4.7m annually

1) New cloud bookings – key measure for SAP's sales success in the cloud – consist of order entry of a given period that is expected to be classified as cloud subscription and support revenue and results from purchases by new customers and from incremental purchases by existing customers. Consequently, orders to renew existing contracts are not included. The order amount must be committed. Consequently, due to their pay-peruse nature, business network transaction fees which do not include a committed minimum consumption are not reflected in the bookings metric (e.g. SAP Ariba and SAP Fieldglass transaction-based fees). Amounts included in the measures are generally annualized.

2) Cloud subscriptions and support backlog represents expected future cloud subscriptions and support revenue that is committed but not yet invoiced and thus not recorded in deferred revenue (as of March 31, 2018). Growth rate at nominal currencies.

3) SAP Business Network commerce is the total commerce transacted on the Ariba, Concur and Fieldglass Networks in the trailing 12 months. Ariba commerce includes procurement and sourcing spend

Great start to the year with strong cloud and software growth and double-digit operating profit increase

€ millions, unless otherwise stated		IFRS			Non-IFRS
Revenue Numbers	Q1/18	Q1/17	∆ %	Q1/18	Q1/17	∆ %	∆ % at cc
Cloud subscriptions and support	1,070	905	18	1,072	906	18	31
Software licenses	625	691	-10	625	691	-10	-2
Software support	2,656	2,731	-3	2,656	2,731	-3	5
Software licenses and support	3,281	3,422	-4	3,281	3,422	-4	4
Cloud and software	4,351	4,328	1	4,353	4,328	1	9
Services	909	957	-5	909	957	-5	5
Total revenue	5,261	5,285	0	5,262	5,285	0	9
Total operating expenses	-4,236	-4,612	-8	-4,027	-4,087	-1	7
Operating profit	1,025	673	52	1,235	1,198	3	14
Financial income, net	-25	13	<-100	-25	13	<-100
Profit before tax	990	668	48	1,201	1,193	1
Income tax expense	-282	-138	>100	-333	-306	9
Profit after tax	708	530	33	868	887	-2
Operating margin (in %)	19.5	12.7	6.7pp	23.5	22.7	0.8pp	1.1pp
Earnings per share, basic (in €)	0.59	0.43	37	0.73	0.73	-1

Double-digit operating profit growth drives operating margin increase

Cost ratios Q1 2018

€5.3bn Total revenue, Non-IFRS

*Non-IFRS at constant currencies

Income Statement Balance Sheet and Cash Flow Analysis Outlook and Additional Information Appendix

Balance Sheet, Condensed March 31, 2018, IFRS

Assets			Equity and liabilities
€ millions	03/31/18	12/31/17	€ millions	03/31/18	12/31/17
Cash, cash equivalents and other financial assets	7,598	4,011	Trade and other payables	1,066	1,151
Trade and other receivables	5,433	5,899	Provisions	123	184
			Other liabilities	5,199	6,104
Other current assets	2,049	2,021	Contract liabilities / deferred income, current	5,041	2,771
Total current assets	15,079	11,930	Total current liabilities	11,430	10,210
Goodwill	20,854	21,267	Financial liabilities	6,479	5,034
			Provisions	425	303
Intangible assets	2,838	2,967	Contract liabilities / deferred income, non-current	62	79
Property, plant, and equipment	3,044	2,967	Other non-current liabilities	1,390	1,340
Other non-current assets	3,657	3,374	Total non-current liabilities	8,355	6,756
			Total liabilities	19,785	16,966
Total non-current assets	30,393	30,575	Total equity	25,688	25,540
Total assets	45,473	42,506	Total equity and liabilities	45,473	42,506

Operating cash flow and free cash flow Q1 2018

€ millions, unless otherwise stated	Q1/18	Q1/17	∆
Operating cash flow	2,578	2,872	-10%
- Capital expenditure	-427	-291	+47%
Free cash flow	2,151	2,581	-17%
Free cash flow as a percentage of total revenue	41	49	-8pp
Cash conversion rate	3.64	5.42	-33%
Days sales outstanding (DSO in days, March 31)	68	72	-4

Group Liquidity

Group Liquidity = cash and cash equivalent + current investments

Other = mainly purchase and sales of equity or debt instruments of other entities, and effects of FX rates on cash and cash equivalents Net Liquidity = group liquidity minus financial debt - for more information see our 2017 integrated report

Income Statement Balance Sheet and Cash Flow Analysis Outlook and Additional Information Appendix

Increased outlook 2018 reflects the closing of the Callidus acquisition and the strong operating profit in the first quarter

	Cloud Subscriptions & Support Revenue (Non-IFRS)	Cloud & Software Revenue (Non-IFRS)	Total Revenue (Non-IFRS)	Operating Profit (Non-IFRS)
outlook (cc) Initial FY 2018	€4.8bn to €5.0bn 27% to 33% [2017: €3.77bn]	€20.7bn to €21.1bn 6% to 8% [2017: €19.55bn]	€24.6bn to €25.1bn 5% to 7% [2017: €23.46bn]	€ 7.3bn to €7.5bn 8% to 11% [2017: €6.77bn]
Increased outlook (cc) FY 2018	€4.95bn to €5.15bn 31% to 36.5% [2017: €3.77bn]	€20.85bn to €21.25bn 6.5% to 8.5% [2017: €19.55bn]	€24.80bn to €25.30bn 5.5% to 7.5% [2017: €23.46bn]	€ 7.35bn to €7.50bn 8.5% to 11% [2017: €6.77bn]

While SAP's full-year 2018 business outlook is at constant currencies, actual currency reported figures are expected to be impacted by currency exchange rate fluctuations as the Company progresses through the year. Based on early April exchange rates we expect for Q2 for Cloud subscriptions and support -10 to -12pp [FY: -7 to -9pp]; for Cloud and software -6 to -8pp [FY: -4 to -6pp] and for Operating Profit -6 to -8pp [FY -4 to -6pp]

FY 2018 – Additional outlook information and non-IFRS adjustments

The Company expects a full-year 2018 effective tax rate (IFRS and non-IFRS) of 27.0% to 28.0% (2017: 19.3% (IFRS) and 22.6% (non-IFRS))

Non-IFRS adjustments	Actual Amounts Q1/17	Actual Amounts Q1/18	Est. Amounts for FY/18*
Revenue adjustments	€0m	€2m	€40m to €70m
Share-based payment expenses	€363m	€70m	€800m to €1,100m
Acquisition-related charges	€157m	€129m	€550m to €610m
Restructuring charges	€4m	€11m	€25m to €35m
Sum of all adjustments	€525m	€211m	€1,415m to €1,815m

*The estimates provided above include the effects of the Callidus acquisition. Due to rounding, numbers may not add precisely

Income Statement Balance Sheet and Cash Flow Analysis Outlook and Additional Information Appendix

Gross margin development 2015 – Q1 2018

Non-IFRS	FY/15	Q1/16	Q2/16	Q3/16	Q4/16	FY/16	Q1/17	Q2/17	Q3/17	Q4/17	FY/17	Q1/18
Cloud*	65.6	65.9	64.8	64.5	62.7	64.4	64.6	62.4	60.8	61.0	62.2	63.2
Business Network*	74.9	75.4	76.3	76.8	75.3	75.9	76.9	77.0	75.9	77.2	76.7	77.3
Software & Support	86.6	85.9	87.4	87.4	88.4	87.4	85.1	86.6	87.3	88.6	87.0	86.4
Cloud & Software	83.8	82.3	83.6	83.4	84.7	83.7	80.8	81.8	82.0	83.9	82.2	80.7
Services	22.7	13.9	17.9	20.5	20.3	18.2	20.7	23.5	25.3	24.7	23.5	19.5
Total gross margin	73.3	69.6	72.6	72.7	75.5	72.9	69.9	71.5	72.5	75.2	72.5	70.2

* Subscriptions and support

First Quarter 2018 Financial Highlights

Walldorf, Germany Tuesday, April 24, 2018