Debt Investors Call. February 7 th, 2018

Transcription

1 Debt Investors Call February 7 th, 2018

2 Scott Smith Investor Relations 2

3 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 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. 3

4 Income Statement and Outlook Balance Sheet and Cash Flow Analysis Acquisition of Callidus Inc. Other Topics

5 In 2017 SAP continued history of hitting raised outlook Multiple guidance raises in the last three years including 2017 Cloud Subscriptions & Support Revenue in billions Cloud and Software Revenue in billions Total Revenue in billions Operating Profit in billions IFRS Non-IFRS IFRS Non-IFRS IFRS Non-IFRS IFRS Non-IFRS Guidance % +8% Guidance 7.0% - 8.5% Guidance Guidance Other notable highlights in 2017: Share of more predictable revenue now at 63% IFRS EPS up 10% Non-IFRS up 14% to 4.44 per share Operating cash flow up 9% to 5.0 billion 2017 SAP SE or an SAP affiliate company. All rights reserved SAP SE Investor Relations. All rights reserved. 4 5 Non-IFRS figures and growth rates at constant currencies

6 Fast growing cloud and resilient core drive total revenue to high end of guidance in 2017 Total revenue +6% to 23.46bn (+8% cc) in FY Cloud New cloud bookings: +31% in Q4 cc; +30% in FY cc Cloud subscriptions and support: 3.77bn in FY; +28% cc to 3.83bn cc Cloud backlog: 7.5bn; +38% Software and support Software license: +2% cc on back of strong 2016 Resilient support growth: +4% cc with continued very high renewal rates Unique combination of software and support: Growth of +4% cc Cloud and software revenue +6% to 19.55bn (+8% cc) in FY Software license and cloud subscription order entry* +14% to 9.42bn (+17% cc) in FY 2017 SAP SE or an SAP affiliate company. All rights reserved SAP SE Investor Relations. All rights reserved. 6 5 *(SW Order Entry + Cloud TCV Order Entry) / All revenue figures are non-ifrs

7 SAP s global breadth Strength across all geographies in 2017 Americas Q4/17 FY/17 EMEA Q4/17 FY/17 APJ Q4/17 FY/17 Cloud subscriptions and support revenue 7% +16% cc 16% +18% cc Cloud subscriptions and support revenue 51% +56% cc 46% +48% cc Cloud subscriptions and support revenue 38% +49% cc 45% +47% cc Cloud and software revenue -3% +6% cc 4% +6% cc For the FY, U.S. and Brazil had a solid performance in cloud revenue. Argentina and Canada grew double-digits in software revenue. U.S. also had solid growth in software revenue Cloud and software revenue 3% +4% cc 7% +7% cc For the FY, Germany, Russia and Spain had strong cloud revenue growth. The Netherlands and Russia had doubledigit software revenue growth. Germany also had solid growth in software revenue Cloud and software revenue 4% +11% cc 9% +12% cc For the FY, Australia and Japan had strong cloud revenue growth. Australia, Greater China and Japan also had great performances with solid doubledigit growth in software revenue 2017 SAP SE or an SAP affiliate company. All rights reserved SAP SE Investor Relations. All rights reserved. Revenues calculated based on customer location; All numbers are Non-IFRS unless otherwise stated 6 7 Individual country highlights are based on Non-IFRS at constant currencies

8 Cloud investments paving the way to margin expansion in 2018 and beyond Non-IFRS; in percent FY/16 Q3/17 Q4/17 FY/17 Cloud Subscriptions & Support Business Network Private Cloud (IaaS) Public Cloud (PaaS/SaaS) Software & Support Q4 cloud gross margin improved sequentially this helped initiate the operating margin turnaround in Q4 Business network margin and private cloud margin increased in Q4 both yoy and sequentially Investments in converged cloud platform began to stabilize in 2017 hence public cloud margin declines steadily improved throughout 2017: while FY was down 4pp, Q4 was only down 2pp with a sequential decline of only 40bps Cloud & Software Services Total Gross Margin Cloud and software margin was only down yoy at constant currencies due to revenue mix shift from fast growing cloud business Services gross margin expansion driven by the continued efficiency gains from our one service initiative 2017 SAP SE or an SAP affiliate company. All rights reserved SAP SE Investor Relations. All rights reserved. 8 7

9 Continued operating profit expansion Operating margin turnaround successfully under way Operating profit (Non-IFRS) Q4/17: 2.36bn +6% cc FY/17: 6.77bn +4% cc 2018 and beyond: Cloud investments paying off. Highly standardized converged platform Cloud revenue will overtake software revenue Efficiency improvements in each business Leverage from scaling cloud and an ever higher renewal base Operating margin development -0.1 pp -0.9 pp -1.4 pp HY1/17 Q3/17 Q4/ and beyond Non-IFRS at constant currencies 2017 SAP SE or an SAP affiliate company. All rights reserved SAP SE Investor Relations. All rights reserved. 9 8

10 SAP reiterates its 2020 ambition Fast cloud, robust overall topline and profitability growth 2017 Cloud Subscription Revenue 3.77bn Cloud and Software Revenue 19.55bn Total Revenue 23.46bn Operating Profit 6.77bn 2018 outlook* Cloud Subscription Revenue in a range of bn Growth: 27% to 33% Cloud and Software Revenue in a range of bn Growth: 6% to 8% Total Revenue in a range of bn Growth: 5% to 7% Operating Profit in a range of bn Growth: 8% to 11% 2020 ambition Cloud Subscription Revenue in a range of bn Total Revenue in a range of bn Operating Profit in a range of bn Share of more predictable revenue 70% to 75% Outlook 2018 and ambition 2020 do not include any contribution from Callidus Non-IFRS; *Non-IFRS at constant currencies 2017 SAP SE or an SAP affiliate company. All rights reserved SAP SE Investor Relations. All rights reserved. 10 9

11 Dympna Donnelly Global Treasury 11

12 Income Statement and Outlook Balance Sheet and Cash Flow Analysis Acquisition of Callidus Inc. Other Topics

13 Dec 31, 2017 Balance Sheet IFRS Assets millions 12/31/17 12/31/16 Cash, cash equivalents and other financial assets 5,001 4,826 Trade and other receivables 5,899 5,924 Other non-financial assets 1, Total current assets 11,930 11,564 Goodwill 21,274 23,311 Intangible assets 2,967 3,786 Property, plant, and equipment 2,967 2,580 Other non-current assets 3,358 3,037 Total non-current assets 30,567 32,713 Total assets 42,497 44,277 Equity and liabilities millions 12/31/17 12/31/16 Trade and other payables 1,151 1,281 Provisions Other liabilities 6,105 5,827 Deferred income, current 1) 2,771 2,383 Total current liabilities 10,210 9,674 Financial liabilities 5,034 6,481 Provisions Deferred income, non-current 1) Other non-current liabilities 1,332 1,365 Total non-current liabilities 6,747 8,205 Total liabilities 16,958 17,880 Total equity 25,540 26,397 Total equity and liabilities 42,497 44,277 13

14 2017: Operating cash flow up 9%, exceeding 5 billion for the first time millions, unless otherwise stated 12/31/16 12/31/17 12/31/15 12/31/16 Operating cash flow 5,045 4,628 +9% - Capital expenditure -1,275-1, % Free cash flow 3,770 3,627 +4% Free cash flow as a percentage of total revenue pp Cash conversion rate % Days sales outstanding (DSO in days, December 31)

15 Net liquidity Group Liquidity = cash and cash equivalent + current investments Other = mainly purchase and sales of equity or debt instruments of other entities, purchase of and proceeds from treasury shares, transactions with non-controlling interests and effects of FX rates on cash and cash equivalents Net Liquidity = group liquidity minus financial debt - for more information see our 2016 integrated report 15

16 meur Maturity Profile - Dec 31st 2017 Fixed/Floating mix 2,250 Eurobonds: EUR 5.15bn Fixed 50% Float 50% 2,000 US PPs: USD 1.31bn (~ EUR 1.09bn) USD/EUR mix* 1,750 USD 17.5% 1,500 EUR 82.5% 1,250 Financing 2017 Eurobond 1bn paid as matured in April USPP $443m paid at maturity in Oct. and Nov. 1, * Calculated in amounts with EURUSD 1,

17 Income Statement and Outlook Balance Sheet and Cash Flow Analysis Acquisition of Callidus Inc. Other Topics

18 Acquisition of Callidus Software Inc. Background Cloud company working in the area of Customer Relationship Management SAP will be a leader in the area of sales operations, execution and performance management Callidus is a public company based in the U.S Total Revenue for 2016 was $207m, an annual growth rate of 20% Purchase price of approx. USD 2.5bn. Target Closing Q

19 Acquisition of Callidus Software Inc. Financing of Callidus Acquisition: Current Proposal Bridge facility negotiated of up to 1.8bn Possible refinancing via Debt Capital Markets and/or Private Placement Timing, maturities and market still to be determined 19

20 Income Statement and Outlook Balance Sheet and Cash Flow Analysis Acquisition of Callidus Inc. Other Topics

21 Other Topics Ratings stable Agency Rating Outlook A2 Stable A Positive Share buyback completed as planned 21

22 Revolving Credit Facility General considerations: Lifetime of years, extension of maturity to min. Nov Increase of volume from EUR 2.0bn to EUR 2.5bn Reduction of bank group from 27 to 20 Individual ticket of EUR 125m with equal treatment of banks Hit ratio of 100% in the course of syndication Documentation: Implementation of Swingline Facility as back-up for a potential Commercial Paper Program Implementation of Ancillary Facility to potentially replace our uncommitted bilateral facilities Successful avoidance of sanctions related language in the facility agreement 22

23 Date for Your Diary SAP Capital Markets Day Tuesday March 6 th 2018 SAP s Hudson Yards Office New York City Event will be available by live webcast 23

24 Contact Details for Investor Questions Investor Relations Stefan Gruber Head of Investor Relations SAP SE Frank Mackert Responsibilities for Institutional Investors and Analysts, Europe John Duncan +1 (212) Responsibilities for Institutional Investors and Analysts, US Global Treasury Steffen Diel Head of Global Treasury SAP SE Klaus Heizmann Responsibilities include bond investors Dympna Donnelly +353 (1) Responsibilities include USPP investors Scott Smith +1 (650) Responsibilities for Institutional Investors and Analysts, US For all enquiries contact 24

25 Q&A 25

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