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What changed in SAP SE's 20-F — 2023 vs 2024

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Paragraph-level year-over-year comparison of SAP SE's 2023 and 2024 20-F annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+497 added−505 removedSource: 20-F (2025-02-27) vs 20-F (2024-02-29)

Top changes in SAP SE's 2024 20-F

497 paragraphs added · 505 removed · 264 edited across 6 sections

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeOPERATING AND FINANCIAL REVIEW AND PROSPECTS 48 Operating Results (IFRS) 51 Foreign Currency Exchange Rate Exposure 63 Liquidity and Capital Resources 63 Research and Development 67 New Accounting Standards Not Yet Adopted 67 Expected Developments 68 ITEM 6.
Biggest changeOPERATING AND FINANCIAL REVIEW AND PROSPECTS 42 Overview ​ 42 Economy and the Market ​ 42 The IT Market ​ 43 Impact on SAP ​ 43 Performance Against Our Outlook for 2024 (Non - IFRS) ​ 43 Operating Results (IFRS) 45 Our 2024 Results Compared to Our 2023 Results (IFRS) ​ 45 Financial Income, Net ​ 51 Our 2023 Results Compared to Our 2022 Results (IFRS) ​ 51 Financial Income, Net ​ 53 Foreign Currency Exchange Rate Exposure 54 Liquidity and Capital Resources 54 Finances (IFRS) ​ 54 Research and Development 58 New Accounting Standards Not Yet Adopted 58 Expected Developments 59 Future Trends in the Global Economy ​ 59 The IT Market: Outlook for 2025 and Beyond ​ 60 Impact on SAP ​ 60 Financial Targets and Prospects ​ 60 Non - Financial Goals for 2025 ​ 62 4 Table of Contents Premises on Which Our Outlook and Prospects Are Based ​ 62 ITEM 6.
ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 15 ITEM 3. KEY INFORMATION 15 Exchange Rates 15 Dividends 15 Risk Factors 17 ITEM 4.
ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 15 ITEM 3. KEY INFORMATION 15 Exchange Rates 15 Dividends 15 Dividend Distribution Policy ​ 15 Annual Dividends Paid and Proposed ​ 16 Risk Factors 17 ITEM 4.
INFORMATION ABOUT SAP 22 Strategy and Business Model 23 Seasonality 30 Security, Cloud Compliance, Data Protection and Privacy 30 Human Capital Resources ​ 33 Energy and Emissions 39 Intellectual Property, Proprietary Rights and Licenses 46 Description of Property 46 ITEM 4A. UNRESOLVED STAFF COMMENTS 47 ITEM 5.
INFORMATION ABOUT SAP 22 Strategy and Business Model 24 Overview of SAP ​ 24 Our Purpose ​ 24 Our Vision ​ 24 Our Business Model ​ 25 Subsidiaries, Acquisitions, and Joint Ventures ​ 25 Our Product Strategy ​ 25 Our Customers ​ 28 Our Investments in Innovation ​ 29 Measuring Our Success ​ 30 Seasonality 31 Security, Cloud Compliance, Data Protection and Privacy 31 Human Capital Resources ​ 34 People Agenda ​ 34 Energy and Emissions 37 Intellectual Property, Proprietary Rights and Licenses 40 Description of Property 40 Investments ​ 41 ITEM 4A.
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DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 72 Compensation Report 74 Independent Auditor’s Report ​ 101 Employees 102 Share Ownership 103 Share-Based Compensation Plans 103 ITEM 7. MAJOR SHAREHOLDERS AND RELATED-PARTY TRANSACTIONS 103
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DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES 63 Supervisory Board ​ 63 Compensation Report 64 Compensation for Executive and Supervisory Board Members ​ 64 Compensation for Executive Board Members ​ 65 Share - Based Payment Information Relating to Long - Term Incentives ​ 85 End - of - Service Benefits ​ 88 Compensation for Supervisory Board Members ​ 94 Employees 98 Headcount and Personnel Expense ​ 98 Share Ownership 99 Beneficial Ownership of Shares ​ 99 Share-Based Compensation Plans 99 Share - Based Compensation ​ 99 ITEM 7.
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MAJOR SHAREHOLDERS AND RELATED-PARTY TRANSACTIONS 99 Major Shareholders ​ 99 Related - Party Transactions ​ 99

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeFurthermore, evolving data protection and privacy laws, regulations, and other standards around the world (such as the California Consumer Privacy Act, the Chinese Personal Information Protection Law including data localization requirements, the EU Digital Services Act, and the EU’s proposed e-Privacy Regulation) are increasingly aimed at protecting individuals’ personal information when it comes to marketing and tracking their online activities.
Biggest changeIn addition, other countries establish safeguards to justify data transfers to further countries, by implementing their own standard contractual clauses. Furthermore, data protection and privacy laws, regulations, and other standards around the world are evolving to better protect individuals’ personal information when it comes to marketing activities and to tracking online behavior.
We are subject to risks and associated consequences in the following areas, among others: non-compliance with our policies and violation of compliance related rules, regulations, and legal requirements including, but not limited to, antitrust, anticorruption, and antibribery legislation in Germany, the U.S.
We are subject to risks and associated consequences in the following areas, among others: non-compliance with our policies; violation of compliance-related rules, regulations, and legal requirements including, but not limited to, antitrust, anticorruption, and antibribery legislation in Germany, the U.S.
Any of these events could have a material adverse effect on our reputation, business, financial performance, competitive or financial position, profit, and cash flows. Corporate Governance and Compliance Risks Ethical Behavior: Our global business exposes us to risks related to unethical behavior and non-compliance with policies by employees, other individuals, partners, third parties, or entities associated with SAP.
Any of these events could have a material adverse effect on our reputation, business, financial performance, competitive or financial position, revenue, profit, and cash flows. Corporate Governance and Compliance Risks Ethical Behavior: Our global business exposes us to risks related to unethical behavior and non-compliance with policies by employees, other individuals, partners, third parties, or entities associated with SAP.
Additionally, we may experience difficulty carving out portions of or entire businesses, we may incur a loss of revenue or experience a negative impact on margins, or we may not achieve the desired strategic and financial benefits.
Additionally, we may have difficulty carving out portions of or entire businesses, we may incur a loss of revenue or experience a negative impact on margins, or we may not achieve the desired strategic and financial benefits.
These changing criteria also impact the compliant use of new technology, such as machine learning and Artificial Intelligence for product development and deployment of intelligent applications. Non-compliance with applicable data protection and privacy laws by SAP or any of the subprocessors engaged by SAP within the processing of personal data could lead to risks.
These changing criteria also impact the compliant use of new technology, such as machine learning and Artificial Intelligence for product development and deployment of intelligent applications. Non-compliance with applicable data protection and privacy laws by SAP or any of the subprocessors engaged by SAP while processing personal data could lead to risks.
Any of these events could have a material adverse effect on our reputation, business, competitive or financial position, profit, and cash flows.
Any of these events could have a material adverse effect on our reputation, business, competitive or financial position, profit, or cash flows.
For (i) a description of our principal capital expenditures and divestitures and the amount invested (including interests in other companies) since January 1, 2023 until the date of this report and (ii) information concerning our principal capital expenditures and divestitures currently in progress, including the distribution of these investments geographically and the method of financing, see “
For (i) a description of our principal capital expenditures and divestitures and the amount invested (including interests in other companies) since January 1, 2024 until the date of this report and (ii) information concerning our principal capital expenditures and divestitures currently in progress, including the distribution of these investments geographically and the method of financing, see “
Any of these events could have a material adverse effect on our reputation, business, competitive or financial position, profit, and cash flows. 21 Table of Contents ITEM 4. INFORMATION ABOUT SAP Our legal corporate name is SAP SE. SAP SE is translated in English to SAP European Company (Societas Europaea, or “SE”).
Any of these events could have a material adverse effect on our reputation, business, competitive or financial position, profit, and cash flows. ITEM 4. INFORMATION ABOUT SAP Our legal corporate name is SAP SE. SAP SE is translated in English to SAP European Company (Societas Europaea, or “SE”).
Any of these events could have a material adverse effect on our reputation, business, competitive or financial position, profit, and cash flows. Cybersecurity and Security: Cybersecurity attacks or breaches, and security vulnerabilities in our infrastructure or services or those of our third-party partners could materially impact our business operations, products, and service delivery.
Any of these events could have a material adverse effect on our reputation, business, competitive or financial position, profit, and cash flows. ​ 19 Table of Contents Cybersecurity and Security: Cybersecurity attacks or breaches, and security vulnerabilities in our infrastructure or services or those of our third-party partners could materially impact our business operations, products, and service delivery.
Any of these events could have a material adverse effect on our reputation, business, competitive or financial position, profit, and cash flows. Strategic Risks Market Share and Profit: Our market share and profit could decline due to increased competition, market consolidation, technological innovation, and new business models in the software industry.
Any of these events could have a material adverse effect on our reputation, business, competitive or financial position, profit, and cash flows. 20 Table of Contents Strategic Risks Market Share and Profit: Our market share and profit could decline due to increased competition, market consolidation, technological innovation, and new business models in the software industry.
Legal and IP: Claims and lawsuits against us, such as for IP infringements, or our inability to obtain or maintain adequate licenses for third-party technology, or if we are unable to protect or enforce our own intellectual property, may result in adverse outcomes.
Legal and IP: Claims and lawsuits against us, such as for IP infringements or breaches of contract, or our inability to obtain or maintain adequate licenses for third-party technology, or if we are unable to protect or enforce our own intellectual property, may result in adverse outcomes.
This may impose additional burdens for SAP due to increasing compliance standards that could restrict the use and adoption of SAP’s products and services (in particular cloud services) and make it more challenging and complex to meet customer expectations.
This may impose additional burdens for SAP due to increasing compliance standards that could restrict the use and adoption of SAP’s products and services (particularly cloud services) and make it more challenging and complex to meet customer expectations.
We are subject to risks and associated consequences in the following areas, among others: the cloud portfolio or strategic direction of cloud operations may not fully meet customer demands; customers’ cloud service demands may not match our data center capacity or control investments; capacity shortages could affect SAP’s ability to deliver and operate cloud services as expected by or committed to our customers; scalability demands on infrastructure and operation could lead to cost increases and margin impacts; hyperscaler or infrastructure instabilities and the lack of availability or comprehensive contractual agreements could lead to challenges in meeting service level agreement (SLA) commitments; we might lack sufficient “future skills” for delivering and operating hybrid environments; we might lack the automation, standardization, and tools to manage and optimize operations and infrastructure; local legal requirements or changes to data sovereignty may lead to customers relocating their landscapes to a different data center; the loss of the right to use hardware purchased or leased from third parties could affect our ability to provide our cloud applications; disruptions to SAP’s cloud applications portfolio (such as system outages or downtimes, SAP network failure due to human or other errors, security breaches, or variability in user traffic for cloud applications) could affect customer SLAs; hardware failures or system errors might result in data loss or corruption; exploitation by threat actors of known and previously unknown (“zero day”) security vulnerabilities in our or our customers’ systems and software, including as a result of our or our customers’ failure to patch such vulnerabilities in a timely or effective manner; partner co-location of data centers might not adhere to our quality standards; or we might not comply with applicable certification requirements, such as the Payment Card Industry Data Security Standard (PCI DSS).
We are subject to risks and associated consequences in the following areas, among others: the cloud portfolio or strategic direction of cloud operations may not fully meet customer demands; customers’ cloud service demands may not match our data center capacity or control investments; capacity shortages could affect SAP’s ability to deliver and operate cloud services as expected by or committed to our customers; scalability demands on infrastructure and operation could lead to cost increases and margin impacts; hyperscaler or infrastructure instabilities and the lack of availability or comprehensive contractual agreements could lead to challenges in meeting service level agreement (SLA) commitments; we might lack sufficient “future skills” for delivering and operating hybrid environments; we might lack the automation, standardization, and tools to manage and optimize operations and infrastructure; local legal requirements or changes to data sovereignty may lead to customers relocating their landscapes to a different data center; the loss of the right to use hardware purchased or leased from third parties could affect our ability to provide our cloud applications; disruptions to SAP’s cloud applications portfolio (such as system outages or downtimes, SAP network failure due to human or other errors, security breaches, or variability in user traffic for cloud applications) could affect customer SLAs; hardware failures or system errors might result in data loss or corruption; partner co-location of data centers might not adhere to our quality standards; or we might not comply with applicable certification requirements, such as the Payment Card Industry Data Security Standard (PCI DSS).
The implementation of SAP software and cloud-based service deliveries is led by SAP, by partners, by customers, or by a combination thereof. 18 Table of Contents We are subject to risks and associated consequences in the following areas, among others: implementation risks caused by insufficient or incorrect information provided by customers, insufficient customer expectation management, including scope, integration capabilities and aspects, and a lack of purposeful selection, implementation, or utilization of SAP solutions; a lack of customer commitments and respective engagements; challenges to achieve a seamlessly integrated, sufficiently automated and aligned service delivery; unrenderable services committed during the sales stage; inadequate contracting and consumption models based on subscription models for services, support, and application management; deviations from standard terms and conditions; or statements concerning solution developments that might be misperceived by customers as commitments on future software functionalities.
We are subject to risks and associated consequences in the following areas, among others: implementation risks caused by insufficient or incorrect information provided by customers, insufficient customer expectation management, including scope, integration capabilities and aspects, and a lack of purposeful selection, implementation, or utilization of SAP solutions; a lack of customer commitments and respective engagements; challenges to achieve a seamlessly integrated, sufficiently automated and aligned service delivery; unrenderable services committed during the sales stage; inadequate contracting and consumption models based on subscription models for services, support, and application management; deviations from standard terms and conditions; or statements concerning solution developments that might be misperceived by customers as commitments on future software functionalities.
In particular, there is significant uncertainty surrounding the applications of intellectual property and privacy laws to AI technology.
There is significant uncertainty surrounding the applications of intellectual property and privacy laws to AI technology.
Such potential transactions may also delay achievement of our strategic objectives, cause us to incur additional expenses, disrupt customer, partner, and employee relationships, and may expose us to unanticipated or ongoing obligations and liabilities, including as a result of indemnification obligations.
Such potential transactions may also delay achievement of our strategic objectives, cause us to incur additional expenses, disrupt customer, partner, and employee relationships, and may expose us to unanticipated or ongoing obligations and liabilities, including because of indemnification obligations.
We could also experience material exposure to our business operations and service delivery due to disruptions to backups, disaster recovery or business-continuity management processes, or as the result of malicious or inadvertent actions by threat actors, employees, contractors, or a host of other parties.
We could also experience material exposure to our business operations and service delivery due to disruptions in backups, in disaster recovery processes, or in business-continuity management processes, or as the result of malicious or inadvertent actions by employees, contractors, or other parties.
We are subject to risks and associated consequences in the following areas, among others: inability to develop and sell new cloud products spanning various organizations on time and in line with market demands due to complexity in heterogeneous technical environments; inability to anticipate and develop technological improvements or succeed in adapting SAP products, services, processes, and business models to technological change, changing regulatory requirements, or emerging industry standards; a change in requirements of our customers and partners to strengthen the Intelligent Enterprise strategy; the possibility that our product and technology strategy might not be successful, or that our customers and partners might not adopt our technology platforms, applications, or cloud services quickly enough, or that they might consider other competing solutions in the market, or that our strategy might not match customers’ expectations and needs, specifically in the context of expanding the product portfolio into additional markets.
We are subject to risks and associated consequences in the following areas, among others: inability to develop and sell new cloud products spanning various organizations on time and in line with market demands due to complexity in heterogeneous technical environments; inability to anticipate and develop technological improvements or succeed in adapting SAP products, services, processes, and business models to technological change, changing regulatory requirements, or emerging industry standards; a change in requirements of our customers and partners to strengthen the Intelligent Enterprise strategy; the possibility that our product and technology strategy might not be successful, or that our customers and partners might not adopt our technology platforms, applications, or cloud services quickly enough, or that they might consider other competing solutions in the market, or that our strategy might not match customers’ expectations and needs, specifically in the context of expanding the product portfolio into additional markets. 21 Table of Contents We are integrating AI into several of our products, including our suite of enterprise applications and SAP BTP, and we expect our use of AI across our portfolio to continue to grow.
Additionally, these laws and government approaches to enforcement continue to change and evolve, just as our products and services continually evolve. Compliance with these varying laws and regulations, including antitrust regulations, could involve significant costs or require changes in our products or business practices.
Additionally, these laws and government approaches to enforcement continue to change and evolve, just as our products and services continually evolve. Compliance with these varying laws and regulations (including, and in particular, global anti-trust regulations) could involve significant costs or require changes in our products or business practices.
SAP’s leadership position in the global market is founded on the long-term and sustainable trust of our stakeholders worldwide. Our overarching approach is one of corporate transparency, open communication with financial markets, regulators, and authorities, and adherence to recognized standards of business integrity. This commitment to recognized standards of business integrity is formalized in SAP’s CoEBC and supporting guidelines.
SAP’s leadership position in the global market is founded on the long-term and sustainable trust of our stakeholders worldwide. Our overarching approach is one of corporate transparency, open communication with financial markets, regulators, and authorities, and adherence to recognized standards of business integrity.
We are subject to risks and associated consequences in the following areas, among others: dependency in the aggregate on third-party technology, including cloud and Web services, that we embed in our products or that we resell to our customers; integration of open source software components from third parties into our software and the implications derived from it; inability to prevent third parties from obtaining, using, or selling without authorization what we regard as our proprietary technology and information; and the possibility that third parties might reverse-engineer or otherwise obtain and use technology and information that we regard as proprietary.
The outcome of litigation and other claims or lawsuits is intrinsically uncertain. 17 Table of Contents We are subject to risks and associated consequences in the following areas, among others: dependency in the aggregate on third-party technology, including cloud and Web services, that we embed in our products or that we resell to our customers; integration of open source software components from third parties into our software and the implications derived from it; inability to prevent third parties from obtaining, using, or selling without authorization what we regard as our proprietary technology and information; and the possibility that third parties might reverse-engineer or otherwise obtain and use technology and information that we regard as proprietary.
Management negotiation of potential acquisitions and divestures and the integration and carve-out of acquired businesses, products, or technologies demands time, focus, and resources of both management and the workforce, and exposes us to unpredictable operational difficulties. 20 Table of Contents We are subject to risks and associated consequences in the following areas, among others: incorrect information or assumptions during the due diligence process for acquisitions, divestitures, and other transactions; failure to integrate acquired technologies or solutions successfully and profitably into SAP’s solution portfolio and strategy; failure to successfully integrate acquired entities and their operations; failure to fulfill the needs of the acquired company’s customers or partners; failure to implement, restore, or maintain internal controls, disclosure controls, and procedures and policies within acquired companies; debt incurrence or significant unexpected cash expenditures; impairment of goodwill and other intangible assets acquired in business combinations; and failure of acquired companies to comply with regulatory requirements..
We are subject to risks and associated consequences in the following areas, among others: incorrect information or assumptions during the due diligence process for acquisitions, divestitures, and other transactions; failure to integrate acquired technologies or solutions successfully and profitably into SAP’s solution portfolio and strategy; failure to successfully integrate acquired entities and their operations; failure to fulfill the needs of the acquired company’s customers or partners; failure to implement, restore, or maintain internal controls, disclosure controls, and procedures and policies within acquired companies; debt incurrence or significant unexpected cash expenditures; impairment of goodwill and other intangible assets acquired in business combinations; and failure of acquired companies to comply with regulatory requirements.
If any of these risks materialize, this might have an adverse effect on the demand for our products and services as well as the partner’s loyalty and ability to deliver.
If any of these risks materialize, this might adversely affect the demand for our products and services as well as the partner’s loyalty and ability to deliver.
Although we have standard routine patch management processes, we are unable to comprehensively apply patches or to confirm that mitigating measures are in place to mitigate all such vulnerabilities, or that any patches will be applied before exploitation by a threat actor.
However, we may be unable to comprehensively apply patches or to confirm that mitigating measures are in place to mitigate all such vulnerabilities, or that any patches will be applied before exploitation by a threat actor.
Foreign Corrupt Practices Act, the UK Bribery Act, and other local laws prohibiting corrupt conduct; unethical and fraudulent behavior leading to criminal charges, fines, and claims by affected parties; collusion with external third parties; fraud and corruption; public sector transactions in territories exposed to a high risk of corruption; or increased exposure and impact on business activities in highly regulated industries.
Foreign Corrupt Practices Act, the UK Bribery Act, and other applicable laws; collusion with external third parties; fraud and corruption; public sector transactions in territories exposed to a high risk of corruption; or increased exposure and impact on business activities in highly regulated industries, all of which may lead to civil or criminal charges, fines, or claims by affected parties as well as reputational damage.
Moreover, the laws and courts of certain countries might not offer effective means to enforce our legal or intellectual property rights. Finally, SAP may not be able to collect or otherwise enforce all judgments awarded to it in legal proceedings. The outcome of litigation and other claims or lawsuits is intrinsically uncertain.
Moreover, the laws and courts of certain countries might not offer effective means to enforce our legal or intellectual property rights. Finally, SAP might face significant adverse rulings in commercial disputes, or might not be able to collect or otherwise enforce all judgments awarded to it in legal proceedings.
Given the nature of complex systems, software and services like ours, and the scanning tools that we deploy across our networks and products, we regularly identify and track security vulnerabilities. Security vulnerabilities are prioritized based on known and anticipated risks, and remediation activities aim to patch within the designated timeframes.
The scanning tools we deploy across our networks and products regularly identify and track security vulnerabilities, which are prioritized based on known and anticipated risks, and our remediation activities aim to patch within the designated timeframes. We have also implemented patch management processes.
Like many companies, we and certain of our third-party partners have experienced and expect to continue to experience cyberattacks and other security incidents that affect our business.
Like many companies, SAP and certain of our third-party partners have experienced and expect to continue to experience cyberattacks and other security incidents that could affect our business. However, we are not aware of any such incidents that have had a material impact on our business.
SAP delivers a full portfolio of solutions, hosts or manages elements of our customers’ businesses in the cloud, processes large amounts of data, and provides mobile solutions to users. While SAP executes each of these areas either directly or through partners and other third parties, our industry continues to experience a complex and threatening cybersecurity landscape.
SAP delivers a full portfolio of solutions, hosts or manages elements of our customers’ businesses in the cloud, processes large amounts of data, and provides mobile solutions to users either directly or through partners and other third parties. This can include the incorporation of third-party data, products, and services into SAP products and services.
When we become aware of unauthorized access to our systems or those of our third-party partners, we have action plans in place intended to identify and remediate the source and impact of such events.
SAP is guided by the NIST CSF and employs a multilayered control strategy to identify, detect, protect, respond, and recover from cybersecurity attacks. When we become aware of unauthorized access to our systems or those of our third-party partners, we have action plans in place intended to identify and remediate the source and impact of such events.
Security threats may also exist due to delayed or insufficient responses to identified issues or other interdependencies such as cloud service providers and those beyond SAP’s cybersecurity infrastructure and protocols. SAP’s and/or its partners’ lack of sufficient security controls or compliance with existing controls could impact SAP’s and/or its partners’ ability to comply with applicable regulations and customer requirements.
Security threats may also exist due to delayed or insufficient responses to identified issues or other interdependencies such as cloud service providers and those beyond SAP’s cybersecurity infrastructure and protocols.
Actual outcomes of litigation and other claims or lawsuits could differ from the assessments made by management in prior periods, which are the basis for our accounting for these litigations and claims under IFRS. 17 Table of Contents Data Protection and Privacy: Non-compliance with increasingly complex and stringent, sometimes even conflicting, applicable data protection and privacy laws, or failure to meet the contractual requirements of SAP’s customers with respect to our products and services, could lead to civil liabilities and fines, as well as loss of customers.
Data Protection and Privacy: Non-compliance with increasingly complex and stringent, sometimes even conflicting, applicable data protection and privacy laws, or failure to meet the contractual requirements of SAP’s customers with respect to our products and services, could lead to civil liabilities and fines, as well as loss of customers.
In other situations, vulnerabilities persist even after we have issued security patches, because our customers may fail to either apply the patches, update their systems, or authorize service downtime sufficient to allow for patching by SAP.
Vulnerabilities may persist even after we have issued security patches should our customers fail to either apply the patches, update their systems, or authorize service downtime sufficient to allow for patching by SAP. If attackers are able to exploit vulnerabilities before patches are installed or mitigating measures are implemented, significant compromises could impact our and our customers’ systems and data.
SAP fully cooperated with law enforcement authorities, and took immediate steps to discipline the employees involved, including terminating all those implicated in potential law violations. Since these allegations were made, SAP has also significantly strengthened its compliance program and related internal controls in accordance with DOJ and regulatory expectations and requirements.
Since these allegations were first made, SAP has also significantly strengthened its compliance program and related internal controls in accordance with DOJ and regulatory expectations and requirements.
Moreover, protecting and defending our intellectual property is crucial to our success. The outcome of litigation and other claims or lawsuits is intrinsically uncertain.
Moreover, protecting and defending our intellectual property is crucial to our success.
Data sets may be overbroad, insufficient, or contain biased information. Content generated by AI systems may be offensive, illegal, or otherwise harmful.
As with many innovations, AI presents risks and challenges that could affect its adoption and therefore our business. AI algorithms or training methodologies may be flawed. Data sets may be overbroad, insufficient, or contain biased information. Content generated by AI systems may be offensive, illegal, or otherwise harmful.
SAP and/or its partners could unknowingly introduce security threats and vulnerabilities without established security evaluation processes. Additionally, failure to integrate or maintain SAP’s cybersecurity infrastructure and protocols with network systems obtained through acquisitions could result in cyberbreaches, a loss of data confidentiality and integrity, and/or a loss of system availability.
Failure to integrate or maintain SAP’s cybersecurity framework and protocols with network systems obtained through acquisitions could also introduce cybersecurity vulnerabilities.
In recent years, the investigation team within SAP’s Office of Ethics & Compliance (OEC), together with the assistance of an external law firm, investigated whistleblower complaints alleging that the business conduct of some former SAP employees within subsidiary SAP companies did not comply with SAP’s policies and procedures or applicable laws.
In recent years, SAP’s Office of Ethics & Compliance (OEC), together with the assistance of an external law firm, investigated non-compliance with SAP’s policies and procedures or applicable laws. These investigations culminated in January 2024 in settlement agreements with the U.S. Securities and Exchange Commission (U.S. SEC) and the U.S. Department of Justice (U.S.
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Management’s view of the litigation might also change in the future.
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The outcome of litigation and other claims or lawsuits is intrinsically uncertain. Management’s view of the litigation might also change in the future. Actual outcomes of litigation and other claims or lawsuits could differ from the assessments made by management in prior periods, which are the basis for our accounting for these litigations and claims under IFRS.
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These investigations culminated in January 2024 in a settlement agreement with the U.S. Securities and Exchange Commission (U.S. SEC) and the U.S. Department of Justice (U.S. DOJ), as well as with local authorities in South Africa.
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Examples include the EU’s Data Act, Digital Services Act, AI Act, and e-Privacy Directive, the Turkish Personal Data Protection Law, China’s Personal Information Protection Law, and Saudi Arabia’s Personal Data Protection Law, which also imposes requirements regarding data localization.
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SAP has encountered situations in the past that required clear messaging and strong action on non-compliance in the context of corrupt behavior that has the potential to harm our business and reputation. SAP is continuing to investigate its dealings with the public sector.
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This commitment to recognized standards of business integrity is formalized in SAP’s Global Code of Ethical Business Conduct (CoEBC) and supporting guidelines.
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The severity of these cybersecurity threats is amplified due to the increasingly sophisticated and malicious global landscape in which we operate.
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DOJ), as well as with authorities in South Africa. During the investigations, SAP fully cooperated with law enforcement authorities and took immediate steps to discipline the employees involved, including terminating the employment of all those implicated in potential law violations.
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This includes third-party data, products, and services that we incorporate into SAP products and services, and the increasingly advanced obfuscation, control-circumvention, and related techniques and tools – such as artificial intelligence – employed by threat actors targeting IT products, businesses, and the supply chain.
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Separately, in December 2024, SAP’s Brazilian subsidiary reached a settlement with the Office of the Comptroller General of the State of Minas Gerais (CGE) and the State of Minas Gerais Public Prosecutor’s Office (MPMG) in Brazil.
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While we experience cybersecurity incidents of various kinds in the ordinary course of our business, we are not aware of any such incidents that have had a material impact on our business. 19 Table of Contents We are subject to risks and associated consequences in many areas including, but not limited to, an increasing number of global threat actor attacks using ransomware as their preferred method of attack as well as exploiting known and unknown bugs, errors and vulnerabilities in our software and systems or those of business partners, customers or other third parties.
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SAP fully cooperated with the CGE and MPMG, applied appropriate consequence management, and enhanced its compliance program. 18 Table of Contents Any of these events could have a material adverse effect on our reputation, business, competitive or financial position, profit, or cash flows.
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If attackers are able to exploit vulnerabilities before patches are installed or mitigating measures are implemented, significant compromises could impact our and our customers’ systems and data.
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The implementation of SAP software and cloud-based service deliveries is led by SAP, by partners, by customers, or by a combination thereof.
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We are integrating AI into a number of our products, including our suite of enterprise applications and SAP BTP, and we expect our use of AI across our portfolio to continue to grow. As with many innovations, AI presents risks and challenges that could affect its adoption and therefore our business. AI algorithms or training methodologies may be flawed.
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SAP runs complex cloud services across different complex architectures, with services implemented through SAP’s own cloud and data centers as well as through hyperscalers.
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Our industry operates in a complex and evolving cybersecurity landscape with increasingly sophisticated attacks, such as the use of AI and cloud scale, or the exploitation by threat actors of known and unknown “zero-day” security vulnerabilities in our or our customers’ systems or software.
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These cybersecurity threats can arise from our or our customers’ failure to patch such vulnerabilities in a timely or effective manner. Geopolitical tensions can exacerbate such threats and potentially lead to hybrid warfare between nation states that can include cybersecurity attacks on private companies, with threat actors targeting IT products, businesses, and the supply chain.
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SAP and/or its partners may have inadequate security controls or insufficient compliance with existing controls, which could impact SAP’s and/or its partners’ ability to comply with applicable regulations and customer requirements. SAP and/or its partners could unknowingly introduce security threats and vulnerabilities if they have not established relevant security evaluation processes.
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The foregoing and other events such as these could result in a loss of customers or customer opportunities, a diminished reputation in the marketplace, government investigations or enforcement actions, internal investigations, litigation including class actions, fines, or penalties, increased costs associated with remediation or compliance requirements, required changes to our business model or operations, and a host of other costs and losses, any or all of which could have a material adverse effect on our reputation, business, financial performance, competitive or financial position, profit, and cash flows.
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Management negotiation of potential acquisitions and divestures and the integration and carve-out of acquired businesses, products, or technologies demands time, focus, and resources of both management and the workforce, and exposes us to unpredictable operational difficulties.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeNote: For a reconciliation of non-IFRS results to IFRS equivalents, see the Performance Management System section. 4 GET: Global Executive Teams; SET: Senior Executive Teams; ET: Executive Teams. ​ 29 Table of Contents Ambition for 2025 ​ ​ ​ ​ ​ Strategic Objective ​ KPI ​ 2025 Ambition Growth ​ Cloud revenue ​ More than €21.5 billion ​ Total revenue More than €37.5 billion Profitability ​ Cloud gross profit 1 ​ Approximately €16.2 billion ​ Operating profit 1 Approximately €10.0 billion ​ ​ Free cash flow ​ Approximately €8.0 billion Customer Loyalty Customer Net Promoter Score Steady increase Employee Engagement Employee Engagement Index Steady increase Climate Performance: Net zero by 2030 ​ Gross greenhouse gas emissions ​ Archiving net zero across the value chain by 2030 Women in Executive Roles % of women in GET / SET / ET job levels out of the combined total of men, women, and other genders at the 3 job levels 25% in end of year 2027 ​ 1 Non-IFRS.
Biggest changeNote: For a reconciliation of non-IFRS results to IFRS equivalents, see the Performance Management System section. 30 Table of Contents Outlook for 2025 ​ The outlook for 2025 replaces SAP’s Ambition 2025. ​ ​ ​ ​ ​ ​ ​ Strategic Objective KPI 2024 Results 2025 Outlook Growth ​ Cloud revenue ​ €17.14 billion ​ €21.6 billion to €21.9 billion 2 ​ Cloud and software revenue €29.83 billion €33.1 billion to €33.6 billion 2 ​ ​ Total revenue growth ​ 10% ​ To slightly accelerate 2 ​ Current cloud backlog growth 32% To slightly decelerate 2 Profitability Operating profit 1 €8.15 billion €10.3 billion to €10.6 billion 1,2 ​ ​ Free cash flow 3 ​ €4.22 billion ​ Approx. €8.0 billion Customer loyalty Customer Net Promoter Score 12 ​ 12 to 16 Employee engagement Employee Engagement Index 74% ​ 74% to 78% Climate performance ​ Gross greenhouse gas emissions ​ 6.9 Mt ​ To steadily decrease carbon emissions across the relevant value chain Women in Executive Roles % of women in the top three management levels below the Executive Board, compared to the total number of individuals across all genders in these levels (calculated in heads) 22.5% ​ To steadily increase the share of Women in Executive Roles. ​ 1 Non-IFRS. 2 At constant currencies. 3 The 2024 results and the 2025 outlook for free cash flow are based on the revised definition applicable from 2025.
KG, Walldorf ​ Germany Rest of EMEA ​ SAP (Schweiz) AG, Biel ​ Switzerland SAP (UK) Limited, Feltham ​ United Kingdom SAP España – Sistemas, Aplicaciones y Productos en la Informática, S.A., Madrid ​ Spain SAP France, Levallois Perret ​ France SAP Italia Sistemi Applicazioni Prodotti in Data Processing S.p.A., Vimercate ​ Italy SAP Nederland B.V., 's-Hertogenbosch ​ The Netherlands United States ​ Ariba, Inc., Palo Alto ​ USA Concur Technologies, Inc., Bellevue ​ USA SAP America, Inc., Newtown Square ​ USA SAP Industries, Inc., Newtown Square ​ USA SAP National Security Services, Inc., Newtown Square ​ USA Rest of Americas ​ SAP Brasil Ltda., São Paulo ​ Brazil SAP Canada, Inc., Toronto ​ Canada SAP México S.A. de C.V., Mexico City ​ Mexico Japan ​ SAP Japan Co., Ltd., Tokyo ​ Japan Rest of APJ ​ SAP Australia Pty Ltd., Sydney ​ Australia SAP China Co., Ltd., Shanghai ​ China SAP India Private Limited, Bangalore ​ India ​ ​ 22 Table of Contents Strategy and Business Model Overview of SAP Founded in 1972, SAP is a global company headquartered in Walldorf, Germany.
KG, Walldorf ​ Germany Rest of EMEA ​ SAP (Schweiz) AG, Biel ​ Switzerland SAP (UK) Limited, Feltham ​ United Kingdom SAP España – Sistemas, Aplicaciones y Productos en la Informática, S.A., Madrid ​ Spain SAP France, Levallois Perret ​ France SAP Italia Sistemi Applicazioni Prodotti in Data Processing S.p.A., Vimercate ​ Italy SAP Nederland B.V., 's-Hertogenbosch ​ The Netherlands United States ​ Ariba, Inc., Palo Alto ​ USA Concur Technologies, Inc., Bellevue ​ USA SAP America, Inc., Newtown Square ​ USA SAP Industries, Inc., Newtown Square ​ USA SAP National Security Services, Inc., Newtown Square ​ USA Rest of Americas ​ SAP Brasil Ltda., São Paulo ​ Brazil SAP Canada, Inc., Toronto ​ Canada SAP México S.A. de C.V., Mexico City ​ Mexico Japan ​ SAP Japan Co., Ltd., Tokyo ​ Japan Rest of APJ ​ SAP Australia Pty Ltd., Sydney ​ Australia SAP China Co., Ltd., Shanghai ​ China SAP India Private Limited, Bengaluru ​ India ​ ​ 23 Table of Contents Strategy and Business Model Overview of SAP Founded in 1972, SAP is a global company headquartered in Walldorf, Germany.
As the IT landscape continues to rapidly evolve, SAP is seeing a clear shift in customer preferences together with a growing demand for flexibility, agility, scalability, and cost-effectiveness. Understanding the importance of helping customers embrace digital technologies to thrive in today’s dynamic business environment, SAP has committed to a forward-thinking cloud strategy.
As the IT landscape continues to rapidly evolve, SAP is seeing a clear shift in customer preferences to the cloud, and a growing demand for flexibility, agility, scalability, and cost-effectiveness. Understanding the importance of helping customers embrace digital technologies to thrive in today’s dynamic business environment, SAP has committed to a forward-thinking cloud strategy.
American Depositary Receipts (ADRs) representing SAP SE ordinary shares are listed on the New York Stock Exchange (NYSE). SAP is a member of Germany’s DAX and TecDAX, the Dow Jones EURO STOXX 50, the Dow Jones Sustainability Index World, and the Dow Jones Sustainability Index Europe.
Our ordinary shares are listed on the Frankfurt Stock Exchange. American Depositary Receipts (ADRs) representing SAP SE ordinary shares are listed on the New York Stock Exchange (NYSE). SAP is a member of Germany’s DAX and TecDAX, the Dow Jones EURO STOXX 50, the Dow Jones Sustainability Index World, and the Dow Jones Sustainability Index Europe.
We also incur external costs for the following: – Translating, localizing, and testing products – Obtaining certification for products in different markets – Patent attorney services and fees – Consulting related to our product strategy – Professional development of our R&D workforce Patents Our investment in R&D has resulted in numerous patents.
We also incur external costs for the following: - Translating, localizing, and testing products - Obtaining certification for products in different markets - Patent attorney services and fees - Consulting related to our product strategy - Professional development of our R&D workforce 29 Table of Contents Patents Our investment in R&D has resulted in numerous patents.
Our Business Model Our business model, through which we implement our vision and strategy, can be summarized as follows: We create value by first identifying the business needs of our customers and then developing and delivering cloud solutions, software, services, and support that address these needs.
Our Business Model Our business model, through which we implement our vision and strategy, can be summarized as follows: We create value by first identifying the business needs of our customers and then developing and delivering a portfolio of cloud solutions, services, and support that address these needs.
Item 4. Information About SAP – Description of Property .” The following table sets forth our most significant subsidiaries based on total revenues of SAP group in 2023. All of these subsidiaries are wholly owned or controlled by SAP SE. ​ Name of Subsidiary Country of Incorporation Germany ​ SAP Deutschland SE & Co.
Item 4. Information About SAP – Description of Property .” 22 Table of Contents The following table sets forth our most significant subsidiaries based on total revenues of SAP group in 2024. All of these subsidiaries are wholly owned or controlled by SAP SE. ​ Name of Subsidiary Country of Incorporation Germany ​ SAP Deutschland SE & Co.
Further, SAP strives to help customers grow their businesses profitably, while at the same time minimizing the risks. To this end, SAP has two offerings, RISE with SAP and GROW with SAP , which cater to different customer objectives and requirements.
SAP strives to help customers grow their businesses profitably, while at the same time minimizing the risks. To this end, SAP has two journeys, RISE with SAP and GROW with SAP , which cater to different customer objectives and requirements.
They cover direct and indirect spend, travel and expense, and external workforce management. Our SAP Ariba solutions combine industry-leading cloud-based applications to help companies discover and collaborate with a global network of partners. Our SAP Concur portfolio contains the world’s leading solutions for integrated travel, expense, and invoice management.
They cover direct and indirect spend, travel and expenses, and external workforce management. Our SAP Ariba solutions combine industry-leading cloud-based applications to help companies discover and collaborate with a global network of partners. Our SAP Concur solutions portfolio contains world-leading solutions for integrated travel, expense, and invoice management.
Key capabilities of SAP BTP include: SAP Build and SAP Build Code tools, and the ABAP Cloud development model, which provides an intuitive, modern development environment for IT and citizen developers; SAP HANA Cloud , SAP Datasphere , and SAP Analytics Cloud solutions which offer database, data management, analysis, and planning capabilities that utilize the value of data; SAP Integration Suite for enterprise iPaaS and API management to connect and automate business processes; and AI Foundation on SAP BTP , which has a rich toolset including access to a broad range of large language models (LLMs) from third-party providers and vector database capabilities to enable developers to create AI- and generative-AI-powered extensions and applications.
Key capabilities of SAP BTP include: SAP Build and SAP Build Code tools, ABAP Cloud development model , which provides an intuitive, modern development environment for IT and citizen developers; SAP HANA Cloud , SAP Datasphere , and SAP Analytics Cloud solutions, which offer database, data management, analysis, and planning capabilities that utilize the value of data; SAP Integration Suite , an integration platform as a service (iPaaS) and management capabilities for Application Programming Interfaces (APIs) to connect and automate business processes; and AI Foundation on SAP BTP , which has a rich toolset including access to a broad range of large language models (LLMs) from third-party providers and vector database capabilities to enable developers to create AI-powered and generative-AI-powered extensions and applications.
As at December 31, 2023, SAP was the most valuable company in the DAX based on market capitalization and has been ranked under the top 5% of S&P Global ESG Scores in the S&P Global Corporate Sustainability Assessment.
As at December 31, 2024, SAP was the most valuable company in the DAX based on market capitalization and has been ranked among the top 5% of S&P Global ESG Scores in the S&P Global Corporate Sustainability Assessment.
This is apparent from a comparison of the market capitalization of SAP SE (based on all issued shares), which was €171.4 billion at the end of 2023 (2022: €118.4 billion), with the book value of our equity in the Consolidated Financial Statements, which was €43.4 billion (2022: €42.8 billion).
This is apparent from a comparison of the market capitalization of SAP SE (based on all issued shares), which was €290.3 billion at the end of 2024 (2023: €171.4 billion), with the book value of our equity in the Consolidated Financial Statements, which was €45.8 billion (2023: €43.4 billion).
This means that the market capitalization of our equity is more than three times higher than the book value.
This means that the market capitalization of our equity is more than six times the book value.
In addition, we want our own business operations and practices to be sustainable and inclusive. SAP is committed to the goal set by the Paris Agreement of limiting global warming to 1.5 degrees Celsius in comparison to preindustrial levels. SAP has committed to achieve net-zero emissions along our entire value chain by 2030.
In addition, we want our own business operations and practices to be sustainable and inclusive. SAP is committed to the goal set by the Paris Agreement of limiting global warming to 1.5 degrees Celsius in comparison to preindustrial levels.
As at December 31, 2023, SAP held a total of close to 13,000 (2022: close to 13,000) validated patents worldwide. Of these, more than 650 (2022: more than 800) were granted and validated in 2023.
As at December 31, 2024, SAP held in excess of 13,000 (2023: close to 13,000) validated patents worldwide. Of these, more than 700 (2023: more than 650) were granted and validated in 2024.
Taulia also embeds sustainability functions into core processes by offering financing to stimulate the supply base to impact its ESG (environmental, social, and governance) credentials. Sustainability Management SAP offers sustainability solutions and services that can help customers drive sustainable practices not only inside their organization but across the entire value chain.
SAP Taulia solutions also embed sustainability functions into core processes, providing financial incentives to encourage the supply base to improve its ESG (environmental, social, and governance) credentials. Sustainability Management SAP offers sustainability solutions and services that help customers drive sustainable practices not only inside their organization but across the entire value chain.
Total R&D expense not only includes our own personnel costs but also the external costs of work and services from the providers and cooperation partners we work with to deliver and enhance our products.
Measured in FTEs, our R&D headcount remained at 34% of total headcount (2023: 34%). Total R&D expenditure not only includes our own personnel costs but also the external costs of work and services from the providers and cooperation partners we work with to deliver and enhance our products.
By connecting core processes – from finance to supply chains and human resources to customer relations – we support efficient growth throughout businesses.
By embedding AI and connecting end-to-end business processes – from finance to supply chains, and human resources to customer relations – we fuel efficient growth throughout businesses.
It pursues opportunities in which it can help fuel enterprise growth by adding expertise, relationships, geographic reach, and capital. It places a particular focus on companies in Europe, Israel, the United Kingdom, and the United States. Sapphire Ventures has committed to investing more than US$1 billion in the next generation of AI - powered enterprise technology startups.
Sapphire Ventures manages more than US$10 billion (over €9 billion) and has invested in more than 200 companies. It pursues opportunities in which it can help fuel enterprise growth by adding expertise, relationships, geographic reach, and capital. It places a particular focus on companies and venture funds in Europe, Israel, the United Kingdom, and the United States.
It also includes platform capabilities such as a database ( SAP HANA ), data management, AI, and application lifecycle management, as well as cloud ERP solutions, which our customers consume as part of their transformation to SAP S/4HANA Cloud. These cloud ERP solutions help customers adopt new business models, such as subscription.
This also includes platform capabilities such as the SAP HANA in-memory database, data management, AI, and application lifecycle management, as well as SAP cloud ERP solutions, which our customers consume as part of their transformation to the cloud.
The portfolio includes core HR and payroll, talent management, employee experience management, and people and workforce analytics. Spend Management SAP’s spend management solutions aim to provide a more unified view of a customer’s spending to reduce costs, mitigate risks, improve collaboration, and make sure every spend decision is aligned with the business strategy.
The portfolio includes an AI-enabled suite of cloud solutions spanning core HR, time, payroll, and talent management, analytics and planning, and employee experience management. Spend Management SAP’s spend management solutions aim to provide a more unified view of a customer’s spending to help reduce costs, mitigate risks, improve collaboration, and align spend decisions with business strategy.
Business Process Transformation Our SAP Signavio solutions help enable our customers to discover, analyze, and understand their business process operations. By benchmarking current process landscapes against best practices and allowing them to act on change recommendations, customers can define a target state and adapt as-is processes accordingly, while measuring whether realized outcomes match strategic goals.
By benchmarking current process landscapes against best practices and acting on change recommendations, customers can define a target state and adapt as-is processes accordingly, while measuring whether realized outcomes match strategic goals.
Our customer-facing teams – across solutions, sales, services, customer engagement, ecosystem, and others – work together along an operating model that aims to harmonize internal processes with the goal of delivering improved outcomes for our customers. Company-Wide Global Experience Program To further address and improve customer feedback, we have a Company-Wide Global Experience (XM) Program in place.
We do so at every touchpoint in their experience with us over the entire engagement lifecycle. Our customer-facing teams – across solutions, sales, services, customer engagement, ecosystem, and others – work together along an operating model that aims to harmonize internal processes with the goal of delivering improved outcomes for our customers.
Software licenses, on-premise support, consulting, development, training, and other services also contribute significant revenue. For an overview of our product portfolio, see the Our Product Strategy section. Subsidiaries, Acquisitions, and Joint Ventures Subsidiaries SAP SE is the parent company of the SAP Group. As at December 31, 2023, the SAP Group comprised 236 companies.
For an overview of our product portfolio, see the Our Product Strategy section. Subsidiaries, Acquisitions, and Joint Ventures Subsidiaries SAP SE is the ultimate parent company of the SAP Group. As at December 31, 2024, the SAP Group comprised 226 companies.
For more information about Customer NPS calculation methodology, see Performance Management System . ​ 27 Table of Contents Our Investments in Innovation SAP’s strong commitment to research and development (R&D) is reflected in our expenditures: ​ 1 The numbers for 2023, 2022, and 2021 reflect continuing operations as a result of the divestiture of Qualtrics. 2 In 2023, SAP updated its cost allocation policy.
Related Risks for SAP For related financial risks, see Sales and Services in the Risk Factors section. ​ Our Investments in Innovation SAP’s strong commitment to research and development (R&D) is reflected in our expenditure: ​ 1 The numbers from 2021 to 2024 reflect continuing operations as a result of the divestiture of Qualtrics. 2 In 2023, SAP updated its cost allocation policy.
SAP acknowledges that every organization’s experience with the cloud can be unique and can therefore be challenging, yet many customers who have made the shift to a cloud strategy can use the benefits that today’s business environments require, such as the ability to redistribute resources previously required for managing internal IT teams, and remote global accessibility from any location through an Internet connection regardless of where teams are located around the world.
We acknowledge that every organization’s experience with the cloud can be unique and can therefore be challenging, yet many customers shifting to a cloud strategy can already achieve the benefits that today’s business environments require, such as redistributing resources previously needed to manage internal IT teams, and ensuring remote global accessibility from any location through the Internet.
For more information about the Customer NPS, see the Performance Management System section. Guidelines and Policies Policies such as the Global Code of Ethics and Business Conduct for Employees and applicable General Terms and Conditions for our product govern our relationships with our customers.
Policies such as our Global Code of Ethics and Business Conduct for Employees and applicable General Terms and Conditions for our products govern our relationships with our customers. How We Measure and Manage Our Performance We use the Customer NPS as a feedback mechanism to measure customer loyalty.
Partners and Ecosystem Our worldwide ecosystem of more than 25,000 partners delivers not only services and support for our customers but also partner innovations that extend our solutions and ideally are built on SAP BTP. Services and Support We have reimagined our cloud services and support portfolio to focus on customer adoption and consumption.
This allows customers to use actual verified and reported data to allocate carbon emissions to specific products, services, organizational units, and business transactions. Partners and Ecosystem Our worldwide ecosystem of more than 25,000 partners delivers not only services and support for our customers but also partner innovations that extend our solutions and are built ideally on SAP BTP.
For more information about the development of our share of more predictable revenue in 2023, see Item 5. Operating and Financial Review and Prospects – Operating Results (IFRS) . For more information about the expected development of our share of more predictable revenue, see
For more information about the expected development of our share of more predictable revenue, see
Our non-IFRS R&D ratio decreased 1.1 pp to 18.0% year over year (2022: 19.1%). At the end of 2023, our total full-time equivalent (FTE) headcount in development was 36,444 (2022: 35,280). Measured in FTEs, our R&D headcount increased 1 pp to 34% of total headcount (2022: 33%).
In 2024, our IFRS R&D ratio, which reflects R&D expenditure as a portion of total revenue, decreased 1.2 percentage points (pp) to 19.1% (2023: 20.3%). Our non-IFRS R&D ratio likewise decreased 1.2pp year over year to 19.0% (2023: 20.2%). At the end of 2024, our total full-time equivalent (FTE) headcount in development was 37,590 (2023: 36,444).
While our intellectual property is important to our success, we believe our business as a whole is not dependent on any particular patent or a combination of patents.
While our intellectual property is important to our success, we believe our business as a whole is not dependent on any particular patent or a combination of patents. Competitive Intangibles The majority of (intangible) resources that are the basis for our current and future success do not appear in the book value of equity in our Consolidated Financial Statements.
Outlook for 2024 ​ ​ ​ ​ ​ ​ ​ ​ Strategic Objective KPI 2023 Results 2024 Outlook Growth Cloud revenue €13.66 billion €17.0 billion to €17.3 billion 2 ​ Cloud and software revenue €26.92 billion €29.0 billion to €29.5 billion 2 Profitability Operating profit (2024 methodology) 1,3 €6.51 billion €7.6 billion to €7.9 billion 1,2 ​ ​ Operating profit (2023 methodology) ​ €8.72 billion ​ — ​ ​ Free cash flow ​ €5.09 billion ​ Approx. €3.50 billion Customer Loyalty Customer Net Promoter Score 9 ​ 9 to 13 Employee Engagement Employee Engagement Index 80% ​ 76% to 80% Climate Performance: Net zero by 2030 ​ Gross greenhouse gas emissions ​ 6.9 million tons gross carbon emissions ​ Steady decrease of our greenhouse gas emissions across the relevant value chain in line with our net-zero target Women in Executive Roles % of women in GET / SET / ET job levels out of the combined total of men, women, and other genders at the 3 job levels. 4 22.2% ​ 25% in end of year 2027: Steady increase ​ 1 Non-IFRS.
Measuring Our Success We use the following financial and non-financial strategic objectives to steer our company: - Growth - Profitability - Customer loyalty - Employee engagement - Climate performance - Women in Executive Roles Outlook and Results for 2024 ​ ​ ​ ​ ​ ​ ​ ​ Strategic Objective KPI 2024 Outlook 1 2024 Results Growth ​ Cloud revenue 3 €17.0 billion to €17.3 billion ​ €17.21 billion ​ ​ Cloud and software revenue 3 €29.5 billion to €29.8 billion ​ €29.96 billion Profitability ​ Operating profit 2,3 €7.8 billion to €8.0 billion ​ €8.23 billion ​ ​ Free cash flow ​ €3.5 billion to €4.0 billion ​ €4.11 billion Customer loyalty ​ Customer Net Promoter Score 9 to 13 ​ 12 Employee engagement ​ Employee Engagement Index 70% to 74% ​ 74% Climate performance ​ Gross greenhouse gas emissions ​ Steady decrease in our greenhouse gas emissions across the relevant value chain in line with our net-zero target ​ 6.9 Mt Women in Executive Roles ​ % of women in the top three management levels below the Executive Board, compared to the total number of individuals across all genders in these levels (calculated in heads) ​ Steadily increase in the share of Women in Executive Roles ​ 22.5% ​ 1 The initial 2024 outlook was communicated in January 2024.
SAP BTP enables customers and partners to build, integrate, and automate applications while leveraging insights from business data on a trusted enterprise-grade environment.
SAP Business Technology Platform SAP Business Technology Platform (SAP BTP) is our business-centric open platform. Consisting of market-leading technologies infused with AI, it enables SAP development, customers, and our partner ecosystem to unlock innovation across the enterprise. SAP BTP enables customers and partners to build, integrate, and automate applications while leveraging insights from business data on a trusted enterprise-grade environment.
Sapphire Ventures In addition to our investments in organic growth and acquisitions, SAP also supports entrepreneurs that aspire to build industry-leading businesses through venture capital funds managed by Sapphire Ventures . Sapphire Ventures manages more than US$10 billion (over €9 billion) and has invested in more than 200 companies.
For more information about WalkMe, see the Notes to the Consolidated Financial Statements, Note (D.1) . Sapphire Ventures In addition to our investments in organic growth and acquisitions, SAP also supports entrepreneurs who aspire to build industry-leading businesses through venture capital funds managed by Sapphire Ventures .
How We Measure and Manage Our Performance We use the Customer NPS as a feedback mechanism to measure customer loyalty. This and other results from the customer survey allow us to directly understand the customer experience and identify key pain points for action.
This and other results from the customer survey allow us to directly understand the customer experience and identify key pain points for action. Because of the importance of our customers to SAP, Customer NPS is one of our main non-financial KPIs.
By proactively obtaining customer feedback on a regular basis, we strive to continuously improve our solutions, identify further business needs, and deliver enhanced value to our customers across the entire lifecycle – and thus continually improve the customer experience. We derive revenue from fees charged to our customers for subscriptions to use our cloud solutions.
We strive to continuously improve our solutions, identify further business needs, and deliver enhanced value to our customers. We derive revenue from fees charged to our customers for subscriptions to use our cloud solutions. Software licenses, on-premise support, consulting, development, training, and other services also contribute significant revenue.
SAP’s green ledger initiative provides auditable sustainability practices as an extension of business operations. This approach enables organizations to record real impacts, report audit-ready ESG metrics, and act with ESG principles integrated into business processes, supporting data-driven sustainability management.
Our SAP Green Ledger solution aims to ensure robust, auditable sustainability practices are a natural extension of business operations. This innovative approach enables organizations to capture real-time impacts, report audit-ready ESG metrics, and integrate ESG principles into business processes to create genuine data-driven sustainability management. At SAP, our journey is one of continuous innovation and transformation.
We believe that this trend will continue in the near future but to a smaller extent as predictable revenues will further increase their share of total revenues. Unlike our on-premise software revenues, our on-premise support revenues and cloud revenues are less subject to seasonality and thus help to reduce this effect.
Such factors have resulted in 2024, 2023, and 2022 first quarter revenue being lower than revenue in the prior year’s fourth quarter. We believe that this trend will continue in the near future but to a smaller extent as predictable revenues will further increase their share of total revenues.
Our legal corporate name is SAP SE. SAP has been recognized as a market share leader in the following areas worldwide: enterprise applications software, 3 enterprise resource management applications, 4 supply chain management applications, 5 procurement applications software, 6 travel and expense management software, 7 and enterprise resource planning software, 8 among others.
SAP has been ranked first in market share in the following areas worldwide: enterprise applications software, 7 enterprise resource management applications, 8 supply chain management applications, 9 procurement applications software, 10 travel and expense management software, 11 and enterprise resource planning software. 12 The SAP Group has a global presence and employed more than 109,000 people as at December 31, 2024.
This strategy-shift to the cloud allows SAP to address these new market opportunities and requirements. The strategic pillars of SAP’s product strategy and our development and innovations are presented below. Cloud ERP SAP S/4HANA Cloud provides software capabilities mainly for finance, risk management, project management, procurement, manufacturing, supply chain management, asset management, and research and development.
This strategy shift to the cloud allows SAP to address these new market opportunities and requirements. The pillars of SAP’s product strategy, and our development and innovations, are presented below. 26 Table of Contents SAP Business AI SAP Business AI capabilities are available across SAP’s suite of enterprise applications and SAP BTP and are grounded in customers’ own business data.
We also support the United Nations Sustainable Development Goals (UN SDGs). Together with our customers and partners, we engage in several initiatives across the UN SDGs. Our Vision SAP’s vision is to bring out the best in every business.
SAP aims to reduce its gross greenhouse gas (GHG) emissions by at least 90% across our relevant value chain by 2030 as part of its net-zero commitment. We also support the United Nations Sustainable Development Goals (UN SDGs). Together with our customers and partners, we engage in several initiatives across the UN SDGs.
It also serves as a central place for SAP Business AI technology. 24 Table of Contents SAP Business AI refers to artificial intelligence (AI) capabilities available across SAP’s suite of enterprise applications and SAP BTP. SAP offers a range of AI-powered use cases built into core business processes across finance, supply chain, procurement, sales, marketing, human resources, and IT.
SAP offers a range of AI-powered use cases built into core business processes across cloud ERP and finance, supply chain, procurement, human resources (HR), sales, marketing and commerce, as well as in IT and across industries, which are used by more than 30,000 customers.
Human Capital Management SAP SuccessFactors solutions for human experience management aim to empower organizations to create an agile and future-ready workforce in a rapidly changing workplace. Customers can use new offers such as skills ontology, personal growth framework for employees, and dynamic teams to work across traditional organizational structures.
These cloud ERP solutions help customers adopt new business models, such as subscription-based services, by using AI, machine learning, and other intelligent technologies for enhanced data analytics and automation. Human Capital Management SAP SuccessFactors solutions aim to optimize the relationship between employees and employers, and empower organizations to create an agile, future-ready workforce in a rapidly changing workplace.
Our Ambition for 2025 has been adjusted in accordance with our updated non-IFRS definition applicable from 2024. For more information, see the Performance Management System section. Note: For a reconciliation of non-IFRS results to IFRS equivalents, see the Performance Management System section.
Free cash flow in 2024 was €4.11 billion. For more information, see the Performance Management System section. Note: For a reconciliation of non-IFRS results to IFRS equivalents, see the Performance Management System section. ​ Seasonality Our business has historically experienced the highest revenue in the fourth quarter of each year, primarily due to year-end capital purchases by customers.
This program aims to achieve a consistent end-to-end experience for our customers by standardizing experience initiatives and methodologies to help identify and close experience gaps across SAP. Due Diligence Governance The head of Customer Success leads all customer-facing functions across sales, services, partner, and cloud engagements for SAP’s businesses globally.
Their feedback is crucial for our journey together. 28 Table of Contents To further address and improve customer feedback, we have a Company-Wide Global Experience Management (XM) Program in place. This program aims to achieve a consistent end-to-end experience for our customers by standardizing experience initiatives and methodologies to help identify and close experience gaps across SAP.
The Chief Marketing and Solutions Officer leads the development of our solution value propositions to provide clarity on SAP’s core differentiators. The People & Operations Board area is responsible for the Company-Wide XM Program, including conducting the Customer Net Promoter Score (NPS) survey. Customer NPS is a KPI in the short-term incentive component of Executive Board remuneration.
The head of Competitive Market Intelligence (CMI) in the Office of the CEO leads our Global XM Program, which includes conducting the Customer Net Promoter Score (NPS) survey. Our Customer NPS is a KPI in the short-term incentive component of Executive Board remuneration. For more information about the Customer NPS, see the Performance Management System section.
Because of the importance of our customers to SAP, Customer NPS is one of our main non-financial KPIs. In 2023, our Customer NPS increased 2 points year over year to 9 (2022: 7 14 ), which is within our target range of 8 to 12.
In 2024, our Customer NPS increased 3 points year over year to 12 (2023: 9), which is within our target range of 9 to 13. The increase was driven by growing customer satisfaction with SAP’s cloud solutions and the efficacy of our technical support organization.
Working Capital Management Taulia solutions for working capital management help enable customers to mitigate the effects of inflation by providing visibility into working capital and access to liquidity. The Taulia Cash Flow Acceleration Platform is designed to accelerate cash flow and create supply chain resilience.
Working Capital Management The SAP Taulia portfolio provides tools and expertise to help businesses create and deliver the right cash flow strategy, and the flexibility to adjust it to meet evolving liquidity challenges. The SAP Taulia Cash Flow Acceleration platform is designed to help optimize cash flow while ensuring supply chain health and resilience.
Additionally, we may make targeted acquisitions to complement our solution offerings and improve coverage in key strategic markets. The acquisition of LeanIX closed on November 7, 2023. LeanIX is a market leader in enterprise architecture management (EAM) software that drives the modernization of IT landscapes and continuous business transformation.
Additionally, we may make targeted acquisitions to complement our solution offerings and improve coverage in key strategic markets. On June 5, 2024, SAP announced its intent to acquire 100% of WalkMe Ltd. (WalkMe), a leader in digital adoption platforms (DAPs). The transaction closed on September 12, 2024, following satisfaction of regulatory and other approvals.
Industry Cloud SAP’s industry cloud solutions offer SAP and our partners the opportunity to extend our core of business software with modular solutions addressing industry-specific functions built on SAP BTP. Business Network SAP Business Network is a business-to-business collaboration platform trusted by companies in 190 countries.
These innovations leverage SAP Business AI to create tailored and intelligent solutions that customers can use to meet their unique industry-specific needs. 27 Table of Contents SAP Business Network SAP Business Network is a business-to-business collaboration platform trusted by companies in 190 countries.
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SAP Business Technology Platform comprises market-leading capabilities in key platform areas such as integration, 9 planning 10 and analytics, 11 data quality, 12 and process automation. 13 The SAP Group has a global presence and employed more than 107,000 people as at December 31, 2023. Our ordinary shares are listed on the Frankfurt Stock Exchange.
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Our Purpose At SAP, we remain steadfast in our purpose to “help the world run better and improve people’s lives.” Together with our customers, we not only rise to meet today’s challenges, but we are also shaping the future by empowering each other to continuously improve and deliver better outcomes.
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Our Purpose Our purpose at SAP remains steadfast: to “help the world run better and improve people’s lives.” We strive to achieve this by focusing on the challenges of current markets, the global environment, and by using the transformative power of artificial intelligence (AI) in business. SAP combines generative AI with business data.
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Technology is essential in addressing the most profound economic, environmental, and social challenges. Software and analytics help predict and prevent disasters, make cities smarter, and foster equity in workplaces. By leveraging innovative tools and business models, we help everyone in the SAP ecosystem make business decisions that have a lasting impact.
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We are committed to providing AI solutions that are integral to our customers’ critical business processes, and ensuring that they are embedded in our portfolio, relevant, reliable, and responsible. Our products and services aim to help our customers meet the challenges as well as take advantage of the opportunities presented by today’s rapidly changing world.
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We recognize our role in minimizing carbon footprints and promoting human rights through AI and data-driven insights. We are committed to providing AI solutions that are integral to our customers’ most critical business processes and aim to ensure that these solutions are relevant, reliable, and responsible.
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In our pursuit of this vision, we focus on three areas: Agility at Scale In a rapidly changing landscape, the need for business agility is paramount to maintaining competitiveness. We facilitate this through data insights that help organizations adapt to market conditions.
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Our Vision Our vision of bringing out the best in every business reflects our commitment to transform organizations globally. We aim to build a future where businesses adapt rapidly to changes and opportunities, embed sustainability in their operations, and drive efficiency throughout the value chain.
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Our cloud ERP solutions and SAP Business AI capabilities are integrated, providing agility and empowering organizations to pivot, whether to strategic shifts or unexpected market scenarios. Achieve More Across the Value Chain We help organizations leverage the collective intelligence that SAP provides to optimize performance across their value chain.
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Our commitment to this vision is based on three pillars: Agile Business Transformation at Scale To stay competitive in a rapidly changing landscape, businesses need to transform at scale with agility. Our cloud solutions and real-time data insights, supported by our platform, enable organizations to achieve greater flexibility and efficiency and to adapt rapidly to evolving demands.
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Our solutions go beyond internal systems, linking businesses across enterprises and digitalizing transactions to foster transparent, resilient, and sustainable value chains. 3 IDC, Worldwide Enterprise Applications Software Market Shares, 2022: Cloud Is the Digital World Foundational Choice, Doc #US51040223, July 2023 4 IDC, Worldwide Semiannual Software Tracker, 2023H1, October 2023 5 IDC, Worldwide Semiannual Software Tracker, 2023H1, October 2023 6 IDC, Worldwide Semiannual Software Tracker, 2023H1, October 2023 7 IDC, Worldwide Travel and Expense Management Software Market Shares, 2022: Evolving Travel Models Pushing Digital Transformation, Doc #US49194223, September 2023 8 IDC, Worldwide Semiannual Software Tracker, 2023H1, October 2023 9 Gartner, Inc., Magic Quadrant for Data Integration Tools, Doc G00777860, December 2023 10 Gartner, Inc., Magic Quadrant for Financial Planning Software, Doc G00784792, December 2023 11 Gartner, Inc., Magic Quadrant for Analytics and Business Intelligence Platforms, Doc G00768632, April 2023 12 Gartner, Inc., Magic Quadrant for Data Quality Solutions, Doc G00759931, November 2022 13 Gartner, Inc., Magic Quadrant for Process Mining Tools, Doc G00774746, March 2023 ​ 23 Table of Contents Sustainability at Your Core We have evolved beyond mere sustainability aspirations to actionable, sustainable outcomes.
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Our SAP Business Suite unlocks new pathways to organizational innovation and excellence to enhance agility and drive scalable growth. Achieve More Across the Value Chain We assist organizations in utilizing collective intelligence to help achieve efficiency, resilience, and agility across the whole value chain.
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At SAP, our journey is one of continuous innovation and transformation, and we are committed to delivering solutions that are not only relevant and reliable but also responsible.
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Our solutions go beyond internal systems: they link businesses across enterprises and, by digitalizing transactions, foster transparent, resilient, and sustainable value chains. 7 IDC, Worldwide Enterprise Applications Software Market Shares, 2023: Cloud Foundation Brings Preparedness for AI, Doc #US51079524, June 2024.
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The combined offering with SAP can provide a foundation for process optimization enabled by AI. For more information about LeanIX, see the Notes to the Consolidated Financial Statements, Note (D.1) .
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IDC declares a statistical tie in the worldwide enterprise applications market when there is a difference of 0.5% or less in the share of revenues among two or more vendors. 8 IDC, Worldwide Semiannual Software Tracker, 2024H1, October 2024. 9 IDC, Worldwide Semiannual Software Tracker, 2024H1, October 2024.
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Divestitures Qualtrics On March 13, resulting from a process that was initiated on January 26, 2023, SAP announced it had agreed to sell all of its 423 million shares in Qualtrics International Inc. as part of the acquisition of Qualtrics by funds affiliated with Silver Lake and Canada Pension Plan Investment Board at a purchase price of US$18.15 in cash per share.
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IDC declares a statistical tie in the worldwide supply chain management market when there is a difference of 0.5% or less in the share of revenues among two or more vendors. 10 IDC, Worldwide Semiannual Software Tracker, 2024H1, October 2024. 11 IDC, Worldwide Travel and Expense Management Software Market Shares, 2023: Resurgence of Business Travel Heralds a New Chapter in Travel and Expense Software, Doc #US51658524, August 2024. 12 IDC, Worldwide Enterprise Resource Planning Applications Market Shares, 2023: Preparing for the AI-Enabled World, #US52728224, December 2024. ​ 24 Table of Contents Sustainability at Your Core We have evolved beyond mere sustainability aspirations to actionable, sustainable outcomes.
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The sale closed on June 28, 2023. SAP remains a close go-to-market and technology partner with Qualtrics. For more information about Qualtrics, see the Notes to the Consolidated Financial Statements, Note (D.1) .
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We are committed to delivering solutions that integrate seamlessly, evolve alongside our customers, and are ready to grow with their ambitions.
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Our Product Strategy SAP’s product portfolio allows enterprises to manage their resources, spend, employees, and customer relationships. SAP Business Technology Platform (SAP BTP) is the platform for SAP, our customers, and our ecosystem to build, integrate, and extend solutions, and to manage enterprise data.
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Sapphire Ventures has committed to investing more than US$1 billion in the next generation of AI - powered enterprise technology startups. Our Product Strategy Current market trends for enterprise management require interconnected, intelligent systems capable of predicting, adapting, and acting autonomously.
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By using these AI capabilities, customers can benefit from automation, recommendations, forecasting, and natural human-machine interaction. In addition, SAP BTP provides business-specific AI services that empower our partners and customers to implement AI into their SAP applications and extensions while reducing data science effort, integration, and operational complexity.
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To address this, an integrated foundation that seamlessly brings together applications, data, and AI is essential. ​ 25 Table of Contents The recently launched SAP Business Suite leverages the powerful combination of these three components.
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In September 2023, we launched Joule , a copilot built directly into our solutions. In November 2023, we introduced the new AI Foundation on SAP BTP group of technologies, new vector capabilities on SAP HANA to leverage AI, and SAP Build Code , an AI-powered solution set to make professional coders more productive.
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It offers a comprehensive set of integrated solutions, combining our core cloud ERP and line-of-business (LoB) applications to seamlessly connect functions across the business end to end. An integral part of this offering is SAP Business Technology Platform (SAP BTP), ensuring harmonized data and seamless process flows across SAP and non-SAP systems.
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In December 2023, we introduced Cloud ERP Suite as a clustering of our strategic cloud solutions. The following offerings are currently part of our Cloud ERP Suite: SAP S/4HANA Cloud as part of Cloud ERP, SAP BTP, core solutions for HR and payroll, spend management, commerce, customer data solutions, business process transformation, and working capital management.
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Driven by business data and artificial intelligence (AI), our strategy emphasizes a modular, composable design, addressing critical business processes while offering flexibility and scalability. This aims to ensure immediate value and supports future expansion as customer needs evolve.
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With SAP S/4HANA Cloud and SAP BTP as key elements and foundation of those offerings, we strive for an expansion of our commercial models, with increased focus on packaged suite deals and flexible consumption models, such as RISE Premium Plus. Further, we aim to drive the adoption of multi-cloud solutions across the mentioned offerings.
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Figure 1: SAP Business Suite The Cloud ERP Suite metric is the subset of SAP Business Suite that includes our strategic cloud solutions, which are most of the solutions in SAP Business Suite. For more information about this metric, see the Performance Management System section.

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Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeSince the beginning of 2020, these annual targets have been integrated in the Executive Board’s short-term performance-based compensation 41 . ● Status: Achieved 42 1.5°C-aligned Science-Based Target (SBT) ​ 2023: 6.9 million tons gross carbon emissions (market-based) ​ 2030: reduction by 90% (near-term and long-term target) ​ ● Acceleration of SAP’s science-based target 43 (to reach net zero across our value chain in line with a 1.5°C future by 2030, 20 years earlier than originally planned) required a reassessment of the baseline, underlying scopes, calculation methodologies, and the target pathway. ● Status and next steps: o In 2023, our original SBT 44 was replaced by our commitment to reach net zero by 2030 in line with the SBTi Corporate Net-Zero Standard. o In line with the Greenhouse Gas (GHG) Protocol, we revised the baseline, which includes scope 1, scope 2 market-based, and all business-relevant scope 3 value chain emissions.
Biggest changeTarget Base Year Target Year Target Description 1.5 °C-aligned science-based target (SBT) ​ 2023: 6.9 million tons Gross GHG Emissions (market-based) ​ 2030: Reduction of Gross GHG Emissions (market-based) by at least 90%, which corresponds to less than 0.7 million tons (near-term and long-term target) ​ Reduce SAP’s Gross GHG Emissions (market-based) across our value chain (Scope 1, 2 and 3) by at least 90% to reach net zero by 2030.
Our SAP Global Security and Cloud Compliance (SGSC) unit supports this journey with the goals of reducing risk and promoting regulatory compliance, and by aligning people, procedures, and technology to protect business processes and data. The organization embraces a security-minded culture that embeds security and compliance in our development and deployment processes and helps secure digital transformation.
Our SAP Global Security and Cloud Compliance (SGSC) unit supports this journey with the goals of reducing risk and promoting regulatory compliance, and by aligning people, procedures, and technology to protect business processes and data. The organization embraces a security-minded culture that embeds security and compliance in our development, deployment and cloud operations processes and helps secure digital transformation.
We started in Q1/2023 with the renovation of our “headquarter building – WDF01” in Walldorf which won’t be usable until completion in early 2027. The footprint of this building is not included in the 2023 numbers above. We have closed our remaining offices in Russia and Belarus (except a small space for the “closure team”).
We started in Q1/2023 with the renovation of our “headquarter building – WDF01” in Walldorf which won’t be usable until completion in early 2027. The footprint of this building is not included in the 2024 numbers above. We have closed our remaining offices in Russia and Belarus (except a small space for the “closure team”).
In approximately 80 countries worldwide, we occupy roughly 1,595,000 square meters. Except for our main office in Germany, most of our office spaces are leased. We also own certain real estate properties in Newtown Square, Palo Alto, and Colorado Springs (United States); Bangalore (India); Sao Leopoldo (Brazil); London (UK); Ra’anana (Israel); Sofia (Bulgaria) and a few other locations.
In approximately 80 countries worldwide, we occupy roughly 1,560,000 square meters. Except for our main office in Germany, most of our office spaces are leased. We also own certain real estate properties in Newtown Square, Palo Alto, and Colorado Springs (United States); Bangalore (India); Sao Leopoldo (Brazil); London (UK); Ra’anana (Israel); Sofia (Bulgaria) and a few other locations.
We are currently investing in the Flex Work readiness of our existing properties and where necessary we are undertaking construction activities to increase our capacity for future expansion of our business. We are also reviewing our portfolio to ensure that it covers our office space demands in line with the evolved Hybrid Work Guidance.
We continue investing in the Flex Work readiness of our existing properties and where necessary we are undertaking construction activities to increase our capacity for future expansion of our business. We are also reviewing our portfolio to ensure that it covers our office space demands in line with the evolved Hybrid Work Guidance.
Our significant construction activities are described below, under the heading “Principal Investments and Divestitures Currently in Progress.” Investments Principal Investments Currently in Progress In 2023, we finalized various construction projects and continued construction activities in several locations. We plan to finance all of these projects from operating cash flow. Our most important projects are listed below.
Our significant construction activities are described below, under the heading “Principal Investments and Divestitures Currently in Progress.” Investments Principal Investments Currently in Progress In 2024, we finalized various construction projects and continued construction activities in several locations. We plan to finance all of these projects from operating cash flow. Our most important projects are listed below.
Description of Property Our principal office is located in Walldorf, Germany, where we own and occupy approximately 405,000 square meters of office and datacenter space including our facilities in neighboring St. Leon-Rot. We also own and lease office space in various other locations in Germany, totaling approximately 185,000 square meters.
Description of Property Our principal office is located in Walldorf, Germany, where we own and occupy approximately 405,000 square meters of office and datacenter space including our facilities in neighboring St. Leon-Rot. We also own and lease office space in various other locations in Germany, totaling approximately 190,000 square meters.
Directors, Senior Management and Employees — Employees ,” which discusses the numbers of our employees, in FTE’s, by business area and by geographic region, which may be used to approximate the productive capacity of our workspace in each region. We believe that our facilities are in good operating condition and adequate for our present usage.
Directors, Senior Management and Employees — Employees ,” which discusses the numbers of our employees, in FTE’s, by business area and by geographic region, which may be used to approximate the productive capacity of our workspace in each region. 40 Table of Contents We believe that our facilities are in good operating condition and adequate for our present usage.
Construction Projects ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ € millions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Country Location of Facility Short Description Estimated Total Costs Incurred as at Estimated Completion ​ ​ ​ ​ ​ ​ Cost ​ 12/31/2023 ​ Date Germany Munich New office building for approx. 740 employees 99 91 June 2024 Germany Walldorf General renovation of headquarters building for approx. 1,600 employees 225 18 March 2027 India Bangalore New office building for approx. 3,500 employees 86 8 December 2025 ​ For more information about our planned investment expenditures, see the Investment Goals section.
Construction Projects ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ € millions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Country Location of Facility Short Description Estimated Total Costs Incurred as at Estimated Completion ​ ​ ​ ​ ​ ​ Cost ​ 12/31/2024 ​ Date Germany Walldorf General renovation of headquarters building for approx. 1,600 employees 232 50 March 2027 India Bangalore New office building for approx. 3,500 employees 86 47 December 2025 ​ For more information about our planned investment expenditures, see the Investment Goals section.
The DPO is responsible for the SAP Global Data Protection and Privacy Policy that addresses SAP’s data protection governance, and regularly informs the CFO about the status of data protection compliance in the SAP Group. To meet and ensure consistent security and data protection compliance, SAP has implemented a formal governance model that assigns clear responsibilities across the SAP Group.
The DPO is responsible for the SAP Global Data Protection and Privacy Policy, which addresses SAP’s data protection governance, and regularly reports to the CFO on data protection compliance in the SAP Group. To ensure consistent security and data protection compliance, SAP has implemented a formal governance model that assigns clear responsibilities across the SAP Group.
There were no material divestitures of facilities within the reporting period 46 Table of Contents Principal Investments and Divestitures for the Last Three Years Our principal investments for property, plant, and equipment (other than from business combinations) amounted to €810 million in 2023 (2022: €1,129 million; 2021 €1,067 million).
There were no material divestitures of facilities within the reporting period. Principal Investments and Divestitures for the Last Three Years Our principal investments for property, plant, and equipment (other than from business combinations) amounted to € 1,138 million in 2024 (2023: €810 million; 2022 €1,129 million). Principal investments in 2024 for property, plant, and equipment increased compared to 2023.
The office and datacenter space we occupy includes approximately 325,000 square meters in the EMEA region, excluding Germany, approximately 310,000 square meters in North and Latin America, and approximately 370,000 square meters in the APJ Region.
The office and datacenter space we occupy includes approximately 305,000 square meters in the EMEA region, excluding Germany, approximately 315,000 square meters in North and Latin America, and approximately 345,000 square meters in the APJ Region.
Principal investments in 2023 for property, plant, and equipment decreased compared to 2022. The investments relate primarily to replacement and purchase of information technology equipment and the construction and leasing of buildings and data centers. For further details related to property, plant, and equipment, see Note (D.4) .
The additions relate primarily to the replacement and purchase of information technology equipment and the construction and leasing of buildings and data centers. For further details related to property, plant, and equipment, see Note (D.4) .
As outlined in the Sustainability Management 36 section of the Integrated Report, we aim to take climate action through our dual approach as enabler and exemplar to help pave the way toward a low-carbon future for our customers, partners, and SAP, and create impact within planetary boundaries.
We aim to take climate action through our dual approach as enabler and exemplar to help pave the way toward a low-carbon future for our customers, partners, and SAP, and create impact while respecting planetary boundaries.
SAP Global Security and Cloud Compliance Cloud solutions and services are increasingly important to many companies’ daily operations. Organizations today are facing many risk factors and disruptions, such as war, political unrest, severe weather, pandemics, cyberattacks, and supply chain disruption, making digital solutions critical to organizational resilience.
Organizations today are facing many risk factors and disruptions, such as war, political unrest, severe weather, pandemics, cyberattacks, and supply chain disruption, making digital solutions critical to organizational resilience.
Our investments for intangible assets such as acquired technologies and customer relationships amounted to €560 million in 2023 compared to €472 million in 2022 (2021: €621 million). Our investments allocated to goodwill increased to €867 million in 2023 from €560 million in 2022 (2021: €1,736 million).
Our investments for intangible assets such as acquired technologies and customer relationships amounted to € 591 million in 2024 compared to €560 million in 2023 (2022: €472 million). Our investments allocated to goodwill decreased to €654 million in 2024 from €859 million in 2023 (2022: €560 million).
We also track the quality of our data protection compliance level based on the annual recertification of our DPMS by the BSI. SAP has been audited by the BSI annually and awarded certifications according to BS 10012 since 2011. The most recent certification is valid until end of 2025.
The records are reportable and regularly reviewed. We also track the quality of our data protection compliance level based on the annual recertification of our Data Protection Management System (DPMS) by the British Standards Institute (BSI). SAP is audited by BSI annually and has been awarded certifications according to BS 10012 since 2011.
SGSC supports key stakeholders across SAP in our lines of business (LoBs), IT, and the presales organization in securing solutions, and drives operational excellence for security and cloud compliance across the enterprise.
SGSC supports key stakeholders across SAP in our lines of business (LoBs), IT, and the presales organization in securing solutions, and drives operational excellence for security and cloud compliance across the enterprise. To protect our organization’s data and assets, and support high-quality risk management and reporting, SGSC regularly reviews and adapts our security policies, standards, and frameworks.
No material financial risks were identified through our risk framework as described in the Risk Factors section. Energy and Emissions Vision and Strategy For over a decade now, climate action has been at the top of SAP’s corporate sustainability agenda in light of the increasing impacts of climate change and escalating global challenges such as ecosystem degradation and biodiversity loss.
Energy and Emissions Our Approach and Policies For over a decade now, climate action has been at the top of SAP’s corporate sustainability agenda in light of the increasing impacts of climate change and escalating global challenges.
MITRE is a disclosure mechanism that provides customers with authoritative, public information from SAP about SAP software vulnerabilities that can be integrated with their existing risk management processes and tools. We strive to reduce risk by continuously improving our processes for detecting and remediating attacks and vulnerabilities.
This process is further supported by the publication of Common Vulnerabilities and Exposures (CVE documents) through MITRE CVE is a disclosure mechanism that provides customers with authoritative, public information from SAP about SAP software vulnerabilities that can be integrated with their existing risk and vulnerability management processes and tools.
SAP’s own quality standards and international regulations require careful selection and monitoring of subprocessors processing personal data on behalf of SAP and SAP customers. With the goal that all subprocessors meet data protection and security requirements for the processing of personal data, SAP has implemented a subprocessor verification process that is part of the overall SAP Third-Party Risk Management framework.
The SAP Third-Party Risk Management Process follows SAP’s own quality standards and international regulations, which require the careful selection and monitoring of subprocessors who handle personal data on behalf of SAP and SAP’s customers.
We maintain a record of processing activities (“procedure enrollment tool”), in which all procedures that process personal data must be documented. These records contain general information about the procedure according to clearly defined criteria that are necessary to meet proper documentation. The records are reportable and regularly reviewed.
Data Protection SAP monitors compliance with data protection procedures across SAP and maintains a record of processing activities (in a procedure enrollment tool) involving different categories of personal data (applicants, customers, employees, partners/suppliers, and other data subjects). These records contain general information about the procedure according to defined criteria that are necessary to meet proper documentation.
Due Diligence for Data Protection Topics Governance Within the scope of their responsibilities, our global data protection officer (DPO) monitors the compliance of activities involving the processing of personal data. The DPO reports to our CFO. Within the Executive Board, the SAP CFO is responsible for compliance and enforcement of data protection and privacy.
The global Data Protection Officer (DPO) is responsible for monitoring compliance with data protection laws and regularly reports to the CFO, who is the Executive Board member responsible for data protection compliance matters and the enforcement of data protection and privacy.
Guidelines and Policies The SAP Global Data Protection and Privacy Policy sets a Group-wide governance standard and structure for the handling of personal data in accordance with data protection and privacy requirements. It also defines requirements for business processes that involve personal data and assigns clear responsibilities.
Data Protection and Privacy The SAP Global Data Protection and Privacy Policy 14 sets a Group-wide governance standard and creates a structure for the handling of personal data in accordance with data protection and privacy requirements. Where applicable, it references the SAP Global Artificial Intelligence (AI) Ethics Policy, which reflects the guiding principles of the International Bill of Human Rights.
The increase in 2023 was primarily due to the LeanIX acquisition (see Note (D.1) for additional information). For further details on investments related to acquisitions, see Notes (D.2) and (D.3) to our Consolidated Financial Statements.
As the initial accounting for the WalkMe business combination is incomplete (for more information, see Note (D.1 )), the goodwill added to our single operating segment through the acquisition of WalkMe (€654 million) is provisional. For further details on investments related to acquisitions, see Notes (D.2) and (D.3) to our Consolidated Financial Statements.
Examples of acute hazards: wildfires, water stress, droughts, floods, avalanches, and landslides. 60 Usage of Intergovernmental Panel on Climate Change (IPCC) RCP 2.6 and RCP 8.5. 61 Usage of IPCC RCP 4.5 and RCP 8.5. ​ 45 Table of Contents Intellectual Property, Proprietary Rights and Licenses We rely on a combination of the protections provided by applicable statutory and common law rights, including trade secret, copyright, patent, and trademark laws, license and non-disclosure agreements, and technical measures to establish and protect our proprietary rights in our products.
The percentage of these types of instruments in our strategy is set out in the table below. ​ ​ ​ ​ Types of Contractual Instruments 2024 Percentage of contractual instruments of energy bundle with attributes about energy generation 0 % Percentage of contractual instruments of energy unbundled with energy attributes claims 100 % ​ Intellectual Property, Proprietary Rights and Licenses We rely on a combination of the protections provided by applicable statutory and common law rights, including trade secret, copyright, patent, and trademark laws, license and non-disclosure agreements, and technical measures to establish and protect our proprietary rights in our products.
All headcount (HC)-relevant employees and, in addition, in Germany, the non-HC relevant employees on parental leave, on long-term sick leave, with a tenure of more than six months, PhD students, and vocational trainees were invited to take part in the 2023 #Unfiltered survey cycle. 19 Information was not part of the statutory audit or the independent limited assurance engagement performed by our external auditor. ​ 33 Table of Contents Our Key People-Related KPIs at a Glance 20 Below is an overview of how we put the three themes of our People Strategy and the KPIs into practice.
All headcount-relevant employees and also (in Germany) non-headcount relevant employees on parental leave, on long-term sick leave, with a tenure of more than six months, PhD students, and vocational trainees were invited to take part in the 2024 #Unfiltered survey cycle.
To that end, we: - Engage in internal and external audits across SAP globally - Monitor and support our cloud and IT units with more than 2,800 controls that are audited and tested for design and operational effectiveness - Offer service organization control (SOC) reports – such as SOC 1 Type II/ISAE 3402 and SOC 2 Type II/ISAE 3000 – to provide insights into the design and operational effectiveness of internal control systems implemented within cloud delivery units - Have external internationally accredited auditors assess and certify our cloud services according to various reporting standards and ISO certifications, such as ISO 9001, ISO 27001, ISO 27017, ISO 27018, ISO 22301, and BS 10012 Data Protection To help ensure necessary knowledge about data protection, global data protection and privacy training is mandatory for SAP employees.
We strive to reduce risk by continuously improving our processes for detecting and remediating attacks and vulnerabilities To ensure effective implementation of the SAP Global Security Policy Framework we: - Support our cloud and IT units with operational controls that are monitored and tested for design and operational effectiveness. - Have established an independent internal audit function which reports the audit planning and the audit results to the Board of Directors on a regular basis. - Engage external internationally accredited auditors to regularly assess the design and operational effectiveness of the implementation. - Offer service organization control (SOC) reports – such as SOC 1 Type II/ISAE 3402 and SOC 2 Type II/ISAE 3000 for our cloud services, issued by external internationally accredited auditors. - Publish certificates for compliance to international standards, such as ISO 9001, ISO 27001, ISO 27017, ISO 27018, ISO 22301, and BS 10012. - Offer further industry-specific and regional compliance attestations, certifications, and reports via SAP Trust Center.
In 2023, there were two notifiable data protection incidents in accordance with the GDPR for data that SAP processes for its own purposes and were reported to the supervisory authorities. 32 Table of Contents Related Risks for SAP For related financial risks, see the Risk Factors section, specifically the Cybersecurity and Security and Data Protection and Privacy subsections.
In 2024, there were nine notifiable data protection incidents under the GDPR for data that SAP processes for its own purposes and one notifiable data protection incident under the Singapore Personal Data Protection Act and related regulations and guidelines for data that SAP processes for its own purposes. All ten incidents were reported to the relevant supervisory authorities.
We gauged the sentiment on employee engagement (which includes excitement for the future of SAP), leadership trust, and health and well-being along with other topics twice in 2023. The average scores from both data collections were used as the full-year Employee Engagement Index and Leadership Trust Net Promoter Score.
In 2024, we ran surveys in June and November to gauge sentiment on employee engagement, leadership trust, health and well-being, and other topics. The average scores from both surveys were used as the full-year Employee Engagement Index and Leadership Trust NPS. The EEI is part of the short-term, one-year performance-based compensation (Short-Term Incentive, STI) of the Executive Board members.
The data protection principles set out in this policy are generally accepted and enshrined in most data protection laws around the world, including the EU GDPR. These principles provide the general framework in the SAP Group for the processing of personal data.
The SAP Global Data Protection and Privacy Policy sets out: - The rules and principles for the processing of personal data in the SAP Group.
In addition, we strive to strengthen SAP’s reputation in the long term as a sustainable and trustworthy partner in the market. We have implemented safeguards intended to help protect the fundamental rights of everyone whose data is processed by SAP, whether they are customers, suppliers, partners, prospects, employees, or applicants.
We utilize various methodologies, guidelines, processes, and tools to address and adapt effectively to evolving cybersecurity threats. These safeguards were designed and implemented to protect the fundamental rights of everyone whose data is processed by SAP, and of those who use SAP’s products, including customers, suppliers, partners, prospects, employees, and applicants.
Our Diversity & Inclusion Strategy is built on three pillars: – Workforce Diversity: We believe in leveraging the widest spectrum of human differences that represent a diversity of identities, thoughts, and perspectives to create business outcomes that help the world run better every day. – Workplace Inclusion: We foster a work environment where colleagues can thrive and engage to their fullest potential in driving SAP’s purpose.
We believe in a future where respect is the hallmark for all, and therefore tailor our initiatives around three pillars: Workforce Diversity, Workplace Inclusion, and Marketplace Leadership. – Workforce Diversity: increasing diversity in the workforce composition at all levels of SAP to appropriately reflect the diversity in society. – Workplace Inclusion: creating a positive work environment where all colleagues can thrive and engage to their fullest potential in driving SAP’s purpose. – Marketplace Leadership: extending the impact of diversity and inclusion efforts within the communities we serve.
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Item 5. Operating and Financial Review and Prospects – Expected Developments . Security, Cloud Compliance, Data Protection and Privacy Vision and Strategy Every day, organizations around the world trust SAP with their data – either on premise at their physical locations, in the cloud, or when using mobile devices while on the move.
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Item 5. Operating and Financial Review and Prospects – Expected Developments . Security, Cloud Compliance, Data Protection and Privacy SAP Global Security and Cloud Compliance Cloud solutions and services are increasingly important to many companies’ daily operations.
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Which is why security, cloud compliance, and data protection and privacy are of paramount importance to us. Therefore, the principles set out in the SAP Global Security Policy govern how we keep our data and our customers’ data safe, how we process it in compliance with local legislation, and how we protect it from malicious use.
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We strive to protect the rights of data subjects and meet applicable local requirements in both our product and service portfolios.
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SAP uses the National Standards and Technology’s Cybersecurity Framework (NIST CSF) to assess how well we manage cybersecurity risk in the Company. The cybersecurity governance framework incorporates industry standards and best practices that help guide our understanding of cybersecurity threats, vulnerabilities, and impacts, and how to mitigate these risks using proactive measures.
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Our approach to data protection, privacy, and security aligns with our overarching business strategy and supports our aim of strengthening SAP’s reputation as a sustainable and trustworthy partner in the market. 31 Table of Contents To further enhance our commitment to security and compliance, security considerations are integrated into every stage of the software development lifecycle.
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To protect our organization’s data and assets, and support high-quality risk management and reporting, SGSC regularly reviews and adapts our security policies, standards, and frameworks. 30 Table of Contents Data Protection With our product and services portfolio, we aim to protect the rights of individuals involved and to meet relevant local requirements when processing personal data.
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SAP Global Security Policy Framework The SAP Global Security Policy Framework is a layered structure of documents consisting of the SAP Global Security Policy and of security standards, procedures, and good practices that define the objectives, values, minimum requirements, and obligations we follow to protect SAP against security threats. - The SAP Global Security Policy 13 is a high-level security document aligned with SAP’s overall strategy and vision to maintain the highest level of security.
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We develop and pursue our global data protection and privacy strategy in accordance with our business strategy. Our global data protection and privacy strategy is to constantly monitor the global regulatory data protection compliance landscape, identify relevant stakeholders, and enable them to take necessary measures. It is also designed to safeguard the processing of personal data.
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It defines management intent, expectations, direction, and a responsibility matrix. - SAP Security Standards , owned by central service leaders in SAP Global Security and Cloud Compliance (SGSC) define the minimum security requirements for numerous domains, including risk management, asset management, information classification, physical security, threat detection, and vulnerability management.
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The strategy consists of four pillars to help ensure we comply with applicable data protection laws and regulations. These pillars are our global data protection and privacy policy, mandatory global data protection and privacy trainings for employees, our global data protection and privacy network and global data protection management system and its data protection control framework.
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Requirements are regularly reviewed to ensure they are appropriate, adequate, and effective. - SAP Security Procedures set out detailed steps for implementing and operationalizing the security standard requirements. - SAP Security Good Practices are checklists designed to simplify the implementation process.
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Due Diligence for Security and Cloud Compliance Topics Governance SGSC is led by a chief security compliance and risk officer and a chief security officer who report directly to the SAP chief technology officer (CTO).
Added
The objectives of the SAP Global Security Policy Framework are to: - Preserve the confidentiality, integrity, and availability of SAP information and of information entrusted to SAP - Protect all SAP assets from internal and external threats, deliberate or accidental, based on a risk assessment - Fulfill the legal, regulatory, operational, and contractual requirements of SAP The SAP Executive Board is responsible for SAP’s security strategy and endorses the Global Security Policy.
Removed
SGSC divisions are responsible for areas such as product and application security, cyberdefense, operational security risk management, security compliance, executive protection, physical security, and a Trust Office that supports customers and partners on matters relating to security and compliance.
Added
The Chief Security Officer and Chief Security Compliance and Risk Officer oversee the policy, ensuring its definition, implementation, monitoring, and development in line with industry standards. Business Information Security Officers (BISOs) lead the security strategy in their respective lines of business and ensure adherence to the policy.
Removed
The SAP Security and Cloud Compliance Governance Model is designed to ensure executive engagement and facilitates shared responsibility in quarterly SAP Security Advisory Board and Security Council meetings and in periodic updates to the Executive Board. Our commitment to customers is to be open and transparent about security vulnerabilities.
Added
All SAP employees and external workers must familiarize themselves with the policy and complete security awareness training. The Global Security Policy Framework is published internally, with regular updates communicated to key stakeholders.
Removed
To ensure this, we work with several external stakeholder groups, including the SAP user groups for the Americas and for the German-speaking countries. Guidelines and Policies The purpose of the SAP Global Security Policy is to provide governance and structure for an appropriate and effective level of information security at SAP and our affiliated businesses.
Added
The rules also apply to the personal data of customers, partners, and other third parties to ensure compliance with applicable data protection and privacy laws. - Responsibilities within the organization for the processing of personal data - Guidelines for the organizational execution of data protection and privacy principles The SAP Global Data Protection and Privacy Policy applies to all SAP Group companies and is rolled out to all SAP employees globally by Data Protection and Privacy.
Removed
Aligned with the overall SAP corporate strategy and vision, it details management expectations and the strategic goals and objectives for SAP security. This policy provides high-level requirements for numerous security domains. These include, but are not limited to, access control, physical security, network security management, incident response, and acceptable use.
Added
All SAP employees and other individuals working on behalf of SAP are obligated to familiarize themselves with this policy and other internal policies governing the handling of personal data. They must commit to keep personal data confidential and not to collect, process, or use personal data without authorization.
Removed
These requirements apply to all SAP employees, contractors, and consultants, and to external parties that are granted access to SAP information and information assets. SAP reviews the policy annually and enacts modifications as deemed appropriate and necessary to protect SAP and our own and our customers’ data and assets where new threats or vulnerabilities are identified.
Added
Management plays a critical role in establishing data protection requirements and business processes to ensure compliance with applicable data protection and privacy laws. To implement data privacy requirements effectively, management can delegate these responsibilities to various levels of management in the organization.
Removed
All SAP employees are required to read and adhere to this internal policy. The SAP Security Policy Framework consists of several levels of security documents that support the requirements described in the policy. In addition, the various LoBs at SAP may have supporting policies, standards, procedures, and practices.
Added
In accordance with these principles, the individual global SAP lines of business (LoBs) have a mandate to implement data privacy requirements within their area of responsibility. 13 The policy was not extended to the acquired companies Taulia or WalkMe. 14 The policy was not extended to the acquired companies Taulia or WalkMe. ​ 32 Table of Contents At local level, operational responsibility for compliance is transferred to the local CFOs, who are supported by a network of local Data Protection and Privacy Coordinators (DPPCs).
Removed
Upon request, the DPO attends steering committee meetings and reports on matters relevant to data protection to the Audit and Compliance Committee of the SAP Supervisory Board. SAP has established a global network of data protection and privacy coordinators (DPPCs) across all SAP Group entities that process personal data.
Added
Unless one has already been appointed by the Data Protection and Privacy team (DPP), each CFO must appoint a local Data Protection and Privacy Coordinator (DPPC), who conducts audits to ensure compliance with regulations. The CFO is also tasked with facilitating these audits and implementing the measures necessary to address compliance gaps.
Removed
This DPPC network consists of regional and local DPPCs to ensure data protection and privacy compliance on a local level. The DPPC network sensitizes our employees by conducting local training and monitoring the legal landscape.
Added
The most recent certification is valid until the end of 2025. Global data protection and privacy training is mandatory for SAP employees. It is conducted every two years, most recently in 2023. New hires are required to complete the training when they join the Company. The training is validated as part of the DPMS audit carried out by BSI.
Removed
Where new data protection laws evolve, the DPPC network also helps the Data Protection and Privacy (DPP) team, which acts on behalf of the DPO, identify and analyze them. If this requires compliance activities, they align with the affected LoBs and help drive the relevant implementation.
Added
The process ensures that all subprocessors meet the necessary data protection and security requirements for the processing of personal data, thereby safeguarding the interests of SAP, its customers, partners, employees, and end users.
Removed
Supported by the DPPC network, the DPP team regularly engages with SAP Government Relations to represent SAP’s interests in the legislative process. In this regard, SAP participates in external working groups aiming at communicating industry-specific interests with respective governments. 31 Table of Contents SAP has implemented a data protection management system (DPMS) for our organization.
Added
The data subject rights request process is managed across lines of business and helps customers, employees, and end users exercise their right to receive information about how their personal data is processed, where legally applicable.
Removed
The DPMS adheres to the generally recognized standard for data protection management systems as defined in the British Standard BS 10012, which comprises the data protection requirements of the European Union (EU) General Data Protection Regulation (GDPR) since version 10012:2017. Our DPMS covers almost all LoBs and is planned to be implemented in all acquired companies as well.
Added
This process ensures that the rights of data subjects under the applicable data protection laws are upheld, and that all necessary information is easily accessible on SAP’s websites and through other sources. The process is validated as part of the DPMS audit carried out by BSI.
Removed
It is designed as a framework covering all aspects of data protection compliance of SAP organizations and employees. The system is used as SAP’s standard methodology to ensure compliance with data protection legislation. The maintenance of the framework is subject to certification by the British Standards Institution (BSI) that confirms data protection compliance annually.
Added
Related Risks for SAP For related financial risks, see the Risk Factors section, specifically the Cybersecurity and Security and Data Protection and Privacy subsections. 33 Table of Contents Human Capital Resources People Agenda Established in 2024, the People Agenda is a holistic system in which people, organizational, and technological development are interconnected.
Removed
We actively monitor changes to applicable laws and regulations so that we can update our standards on an ongoing basis as necessary to meet data protection compliance. The policy was last updated in 2023.
Added
We have defined three key strategic pillars built on a strong foundation that together make up our People Agenda: – Our growth culture guides how we work internally and address the market and customers externally. It increases our capacity for change, drives efficiency, and ensures accountability, helping us deliver high-performance results for our customers and markets.
Removed
By the time any vulnerabilities are disclosed to customers, the patches are already applied on cloud landscapes as a rule. This process is further supported by the publication of Common Vulnerabilities and Exposures (CVE documents) through MITRE that enable integration with the customer’s existing vulnerability and risk management tools.
Added
By executing in line with our strategy, we strengthen the engagement and commitment of everyone – employees, partners, customers, and shareholders. Additionally, we are investing in comprehensive leadership development programs that will equip all our leaders with the skills to develop teams, lead transformation, and consistently deliver results.
Removed
The training is conducted every two years, with the latest rolled out in 2023. This training helps our workforce handle personal data with due care and in accordance with the law and to maintain compliance with data protection requirements in their work. We monitor compliance of data protection-relevant procedures across SAP.
Added
While individual growth is important, we also recognize the need to enhance our organizational capabilities to fully support our culture. We are committed to building high-quality methodologies and tools in organizational development and change management.
Removed
SAP respects the rights of the data subjects to obtain information as to whether personal data concerning them is being processed. All necessary information is made available to the data subjects within the framework of the privacy statements on the respective SAP Web sites.
Added
These resources will be essential for enabling SAP’s ongoing transformation and ensuring that we remain agile in a rapidly changing environment. – Our skills-led people ecosystem prioritizes HR practices that focus on skills at every stage of the employee lifecycle: from skills-based job descriptions and personalized skill assessments, to enhanced individual learning and development opportunities tailored to growth, to hiring based on skills and abilities rather than just experience or academic qualifications. – Our game-changing people technology harnesses SAP’s own technological capabilities.
Removed
Human Capital Resources Vision and Strategy People are at the heart of our organization. Aiming for a highly engaged, diverse, future-fit workforce equipped with the right skills helps SAP attract and retain the best talent.

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Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

132 edited+71 added−67 removed14 unchanged
Biggest changeFor more information about the terms and details of these programs, see the Notes to the Consolidated Financial Statements of the Integrated Report 2023, Note (B.3) . ​ 91 Table of Contents Executive Board Members’ Holdings ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1/1/2023 ​ During the Year ​ 12/31/2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercised (E)/ ​ ​ ​ ​ ​ Thereof ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted (A)/ ​ ​ ​ Thereof ​ Subject to Quantity of Share Units ​ Specification ​ Grant Date ​ Outstanding ​ Granted ​ Forfeited (F) ​ Outstanding ​ Unvested ​ Holding ​ ​ LTI 2020 - Tranche 2023 - FSU ​ 3/24/2023 ​ 0 ​ 16,726 ​ 0 ​ 16,726 ​ 16,726 ​ 16,726 ​ ​ LTI 2020 - Tranche 2023 - MSU ​ 3/24/2023 ​ 0 ​ 16,726 ​ 0 ​ 16,726 ​ 16,726 ​ 16,726 ​ ​ LTI 2020 - Tranche 2023 - RSU ​ 3/24/2023 ​ 0 ​ 16,726 ​ 0 ​ 16,726 ​ 16,726 ​ 16,726 ​ ​ LTI 2020 – Tranche 2022 – FSU ​ 3/28/2022 ​ 17,197 ​ 0 ​ 0 ​ 17,197 ​ 17,197 ​ 17,197 ​ ​ LTI 2020 – Tranche 2022 – MSU ​ 3/28/2022 ​ 17,197 ​ 0 ​ 0 ​ 17,197 ​ 17,197 ​ 17,197 ​ ​ LTI 2020 – Tranche 2022 – RSU ​ 3/28/2022 ​ 17,197 ​ 0 ​ 0 ​ 17,197 ​ 17,197 ​ 17,197 ​ LTI 2020 – Tranche 2021 – FSU ​ 3/22/2021 17,230 0 0 ​ 17,230 17,230 17,230 ​ ​ LTI 2020 – Tranche 2021 – MSU ​ 3/22/2021 ​ 17,230 ​ 0 ​ 0 ​ 17,230 ​ 17,230 ​ 17,230 Christian Klein (CEO) ​ LTI 2020 – Tranche 2021 – RSU ​ 3/22/2021 ​ 17,230 ​ 0 ​ 0 ​ 17,230 ​ 17,230 ​ 17,230 ​ ​ LTI 2020 – Tranche 2020 – FSU ​ 2/29/2020 ​ 14,834 ​ 0 ​ -6,178 A 8,656 ​ 0 ​ 8,656 ​ ​ LTI 2020 – Tranche 2020 – MSU ​ 2/29/2020 ​ 14,834 ​ 0 ​ -14,834 A 0 ​ 0 ​ 0 ​ ​ LTI 2020 – Tranche 2020 – RSU ​ 2/29/2020 ​ 14,834 ​ 0 ​ 0 ​ 14,834 ​ 0 ​ 14,834 ​ ​ LTI 2016 – Tranche 2019 – PSU ​ 11/20/2019 ​ 4,678 ​ 0 ​ -4,678 A/E 0 ​ 0 ​ 0 ​ ​ LTI 2016 – Tranche 2019 – PSU ​ 2/20/2019 ​ 15,628 ​ 0 ​ -15,628 A/E 0 ​ 0 ​ 0 ​ ​ LTI 2016 – Tranche 2019 – RSU ​ 11/20/2019 ​ 3,119 ​ 0 ​ -3,119 E 0 ​ 0 ​ 0 ​ ​ LTI 2016 – Tranche 2019 – RSU ​ 2/20/2019 ​ 10,419 ​ 0 ​ -10,419 E 0 ​ 0 ​ 0 ​ ​ LTI 2020 – Tranche 2023 – FSU ​ 3/24/2023 ​ 0 ​ 8,073 ​ 0 ​ 8,073 ​ 8,073 ​ 8,073 Dominik Asam (from 3/7/2023) ​ LTI 2020 – Tranche 2023 – MSU ​ 3/24/2023 ​ 0 ​ 8,073 ​ 0 ​ 8,073 ​ 8,073 ​ 8,073 ​ ​ LTI 2020 – Tranche 2023 – RSU ​ 3/24/2023 ​ 0 ​ 8,073 ​ 0 ​ 8,073 ​ 8,073 ​ 8,073 ​ ​ LTI 2020 – Tranche 2023 – FSU ​ 3/24/2023 ​ 0 ​ 6,612 ​ -4,960 F 1,652 ​ 1,652 ​ 1,652 ​ ​ LTI 2020 – Tranche 2023 – MSU ​ 3/24/2023 ​ 0 ​ 6,612 ​ -4,960 F 1,652 ​ 1,652 ​ 1,652 ​ ​ LTI 2020 – Tranche 2023 – RSU ​ 3/24/2023 ​ 0 ​ 6,612 ​ -4,960 F 1,652 ​ 1,652 ​ 1,652 ​ ​ LTI 2020 – Tranche 2022 – FSU ​ 3/28/2022 ​ 8,612 ​ 0 ​ -4,309 F 4,303 ​ 4,303 ​ 4,303 Sabine Bendiek 1 (until 12/31/2023) ​ LTI 2020 – Tranche 2022 – MSU ​ 3/28/2022 ​ 8,612 ​ 0 ​ -4,309 F 4,303 ​ 4,303 ​ 4,303 ​ ​ LTI 2020 – Tranche 2022 – RSU ​ 3/28/2022 ​ 8,612 ​ 0 ​ -4,309 F 4,303 ​ 4,303 ​ 4,303 ​ ​ LTI 2020 – Tranche 2021 – FSU ​ 3/22/2021 ​ 10,570 ​ 0 ​ -2,648 F 7,922 ​ 7,922 ​ 7,922 ​ ​ LTI 2020 – Tranche 2021 – MSU ​ 3/22/2021 ​ 10,570 ​ 0 ​ -2,648 F 7,922 ​ 7,922 ​ 7,922 ​ ​ LTI 2020 – Tranche 2021 – RSU ​ 3/22/2021 ​ 10,570 ​ 0 ​ -2,648 F 7,922 ​ 7,922 ​ 7,922 ​ ​ LTI 2020 – Tranche 2023 – FSU ​ 3/24/2023 ​ 0 ​ 8,819 ​ -8,276 F 543 ​ 543 ​ 543 ​ ​ LTI 2020 – Tranche 2023 – MSU ​ 3/24/2023 ​ 0 ​ 8,819 ​ -8,276 F 543 ​ 543 ​ 543 ​ ​ LTI 2020 – Tranche 2023 – RSU ​ 3/24/2023 ​ 0 ​ 8,819 ​ -8,276 F 543 ​ 543 ​ 543 ​ ​ LTI 2020 – Tranche 2022 – FSU ​ 3/28/2022 ​ 9,068 ​ 0 ​ -6,244 F 2,824 ​ 2,824 ​ 2,824 ​ ​ LTI 2020 – Tranche 2022 – MSU ​ 3/28/2022 ​ 9,068 ​ 0 ​ -6,244 F 2,824 ​ 2,824 ​ 2,824 ​ ​ LTI 2020 – Tranche 2022 – RSU ​ 3/28/2022 ​ 9,068 ​ 0 ​ -6,244 F 2,824 ​ 2,824 ​ 2,824 Luka Mucic (until 3/31/2023) ​ LTI 2020 – Tranche 2021 – FSU ​ 3/22/2021 ​ 8,679 ​ 0 ​ -3,808 F 4,871 ​ 4,871 ​ 4,871 ​ LTI 2020 – Tranche 2021 – MSU ​ 3/22/2021 ​ 8,679 ​ 0 ​ -3,808 F 4,871 ​ 4,871 ​ 4,871 ​ LTI 2020 – Tranche 2021 – RSU ​ 3/22/2021 ​ 8,679 ​ 0 ​ -3,808 F 4,871 ​ 4,871 ​ 4,871 ​ ​ LTI 2020 – Tranche 2020 – FSU ​ 2/29/2020 ​ 6,403 ​ 0 ​ -3,370 F/A 3,033 ​ 0 ​ 3,033 ​ LTI 2020 – Tranche 2020 – MSU ​ 2/29/2020 ​ 6,403 ​ 0 ​ -6,403 F/A 0 ​ 0 ​ 0 ​ LTI 2020 – Tranche 2020 – RSU ​ 2/29/2020 ​ 6,403 ​ 0 ​ -1,205 F 5,198 ​ 0 ​ 5,198 ​ ​ LTI 2016 – Tranche 2019 – PSU ​ 2/20/2019 ​ 15,628 ​ 0 ​ -15,628 A/E 0 ​ 0 ​ 0 ​ ​ LTI 2016 – Tranche 2019 – RSU ​ 2/20/2019 ​ 10,419 ​ 0 ​ -10,419 E 0 ​ 0 ​ 0 ​ ​ LTI 2020 - Tranche 2023 - FSU ​ 3/24/2023 ​ 0 ​ 8,667 ​ 0 ​ 8,667 ​ 8,667 ​ 8,667 92 Table of Contents ​ ​ LTI 2020 - Tranche 2023 - MSU ​ 3/24/2023 ​ 0 ​ 8,667 ​ 0 ​ 8,667 ​ 8,667 ​ 8,667 ​ ​ LTI 2020 - Tranche 2023 - RSU ​ 3/24/2023 ​ 0 ​ 8,667 ​ 0 ​ 8,667 ​ 8,667 ​ 8,667 ​ ​ LTI 2020 – Tranche 2022 – FSU ​ 3/28/2022 ​ 8,911 ​ 0 ​ 0 ​ 8,911 ​ 8,911 ​ 8,911 Scott Russell ​ LTI 2020 – Tranche 2022 – MSU ​ 3/28/2022 ​ 8,911 ​ 0 ​ 0 ​ 8,911 ​ 8,911 ​ 8,911 ​ ​ LTI 2020 – Tranche 2022 – RSU ​ 3/28/2022 ​ 8,911 ​ 0 ​ 0 ​ 8,911 ​ 8,911 ​ 8,911 ​ LTI 2020 – Tranche 2021 – FSU ​ 3/22/2021 8,170 ​ 0 ​ 0 ​ 8,170 ​ 8,170 ​ 8,170 ​ ​ LTI 2020 – Tranche 2021 – MSU ​ 3/22/2021 ​ 8,170 ​ 0 ​ 0 ​ 8,170 ​ 8,170 ​ 8,170 ​ LTI 2020 – Tranche 2021 – RSU ​ 3/22/2021 ​ 8,170 ​ 0 ​ 0 ​ 8,170 ​ 8,170 ​ 8,170 ​ ​ LTI 2020 – Tranche 2023 – FSU ​ 3/24/2023 ​ 0 ​ 6,612 ​ 0 ​ 6,612 ​ 6,612 ​ 6,612 ​ ​ LTI 2020 – Tranche 2023 – MSU ​ 3/24/2023 ​ 0 ​ 6,612 ​ 0 ​ 6,612 ​ 6,612 ​ 6,612 ​ ​ LTI 2020 – Tranche 2023 – RSU ​ 3/24/2023 ​ 0 ​ 6,612 ​ 0 ​ 6,612 ​ 6,612 ​ 6,612 ​ ​ LTI 2020 – Tranche 2022 – FSU ​ 3/28/2022 ​ 6,798 ​ 0 ​ 0 ​ 6,798 ​ 6,798 ​ 6,798 ​ ​ LTI 2020 – Tranche 2022 – MSU ​ 3/28/2022 ​ 6,798 ​ 0 ​ 0 ​ 6,798 ​ 6,798 ​ 6,798 ​ ​ LTI 2020 – Tranche 2022 – RSU ​ 3/28/2022 ​ 6,798 ​ 0 ​ 0 ​ 6,798 ​ 6,798 ​ 6,798 Juergen Mueller ​ LTI 2020 – Tranche 2021 – FSU ​ 3/22/2021 ​ 6,811 ​ 0 ​ 0 ​ 6,811 ​ 6,811 ​ 6,811 ​ ​ LTI 2020 – Tranche 2021 – MSU ​ 3/22/2021 ​ 6,811 ​ 0 ​ 0 ​ 6,811 ​ 6,811 ​ 6,811 ​ ​ LTI 2020 – Tranche 2021 – RSU ​ 3/22/2021 ​ 6,811 ​ 0 ​ 0 ​ 6,811 ​ 6,811 ​ 6,811 ​ ​ LTI 2020 – Tranche 2020 – FSU ​ 2/29/2020 ​ 5,864 ​ 0 ​ -2,442 A 3,422 ​ 0 ​ 3,422 ​ ​ LTI 2020 – Tranche 2020 – MSU ​ 2/29/2020 ​ 5,864 ​ 0 ​ -5,864 A 0 ​ 0 ​ 0 ​ LTI 2020 – Tranche 2020 – RSU ​ 2/29/2020 ​ 5,864 ​ 0 ​ 0 ​ 5,864 ​ 0 ​ 5,864 ​ LTI 2016 – Tranche 2019 – PSU ​ 2/20/2019 ​ 14,311 ​ 0 ​ -14,311 A/E 0 ​ 0 ​ 0 ​ LTI 2016 – Tranche 2019 – RSU ​ 2/20/2019 ​ 9,541 ​ 0 ​ -9,541 E 0 ​ 0 ​ 0 ​ ​ LTI 2020 – Tranche 2023 – FSU ​ 3/24/2023 ​ 0 ​ 8,515 ​ 0 ​ 8,515 ​ 8,515 ​ 8,515 ​ LTI 2020 – Tranche 2023 – MSU ​ 3/24/2023 ​ 0 ​ 8,515 ​ 0 ​ 8,515 ​ 8,515 ​ 8,515 ​ ​ LTI 2020 – Tranche 2023 – RSU ​ 3/24/2023 ​ 0 ​ 8,515 ​ 0 ​ 8,515 ​ 8,515 ​ 8,515 ​ ​ LTI 2020 – Tranche 2022 – FSU ​ 3/28/2022 ​ 7,125 ​ 0 ​ 0 ​ 7,125 ​ 7,125 ​ 7,125 ​ ​ LTI 2020 – Tranche 2022– MSU ​ 3/28/2022 ​ 7,125 ​ 0 ​ 0 ​ 7,125 ​ 7,125 ​ 7,125 ​ ​ LTI 2020 – Tranche 2022– RSU ​ 3/28/2022 ​ 7,125 ​ 0 ​ 0 ​ 7,125 ​ 7,125 ​ 7,125 Thomas Saueressig LTI 2020 - Tranche 2021 - FSU ​ 3/22/2021 ​ 6,811 ​ 0 ​ 0 ​ 6,811 ​ 6,811 ​ 6,811 ​ ​ LTI 2020 - Tranche 2021 - MSU ​ 3/22/2021 ​ 6,811 ​ 0 ​ 0 ​ 6,811 ​ 6,811 ​ 6,811 ​ ​ LTI 2020 - Tranche 2021 - RSU ​ 3/22/2021 ​ 6,811 ​ 0 ​ 0 ​ 6,811 ​ 6,811 ​ 6,811 ​ ​ LTI 2020 - Tranche 2020 - FSU ​ 2/29/2020 ​ 5,864 ​ 0 ​ -2,442 A 3,422 ​ 0 ​ 3,422 ​ ​ LTI 2020 - Tranche 2020 - MSU ​ 2/29/2020 ​ 5,864 ​ 0 ​ -5,864 A 0 ​ 0 ​ 0 ​ ​ LTI 2020 - Tranche 2020 - RSU ​ 2/29/2020 ​ 5,864 ​ 0 ​ 0 ​ 5,864 ​ 0 ​ 5,864 ​ ​ LTI 2016 – Tranche 2019 – PSU ​ 11/1/2019 ​ 2,392 ​ 0 ​ -2,392 A/E 0 ​ 0 ​ 0 ​ ​ LTI 2016 - Tranche 2019 - RSU ​ 11/1/2019 ​ 1,594 ​ 0 ​ -1,594 E 0 ​ 0 ​ 0 ​ LTI 2020 - Tranche 2023 - FSU ​ 3/24/2023 ​ 0 ​ 7,486 ​ 0 ​ 7,486 ​ 7,486 ​ 7,486 ​ ​ LTI 2020 - Tranche 2023 - MSU ​ 3/24/2023 ​ 0 ​ 7,486 ​ 0 ​ 7,486 ​ 7,486 ​ 7,486 ​ LTI 2020 - Tranche 2023 - RSU ​ 3/24/2023 ​ 0 ​ 7,486 ​ 0 ​ 7,486 ​ 7,486 ​ 7,486 ​ ​ LTI 2020 – Tranche 2022 – FSU ​ 3/28/2022 ​ 10,944 ​ 0 ​ 0 ​ 10,944 ​ 10,944 ​ 10,944 Julia White ​ LTI 2020 – Tranche 2022 – MSU ​ 3/28/2022 ​ 10,944 ​ 0 ​ 0 ​ 10,944 ​ 10,944 ​ 10,944 ​ ​ LTI 2020 – Tranche 2022 – RSU ​ 3/28/2022 ​ 10,944 ​ 0 ​ 0 ​ 10,944 ​ 10,944 ​ 10,944 ​ ​ LTI 2020 – Tranche 2021 – FSU ​ 3/22/2021 ​ 8,674 ​ 0 ​ 0 ​ 8,674 ​ 8,674 ​ 8,674 ​ ​ LTI 2020 – Tranche 2021 – MSU ​ 3/22/2021 ​ 8,674 ​ 0 ​ 0 ​ 8,674 ​ 8,674 ​ 8,674 ​ ​ LTI 2020 – Tranche 2021 – RSU ​ 3/22/2021 ​ 8,674 ​ 0 ​ 0 ​ 8,674 ​ 8,674 ​ 8,674 Total ​ ​ ​ ​ 593,424 214,530 -227,066 ​ 580,888 530,595 580,888 ​ 1 As Sabine Bendiek’s Executive Board service contract ends on December 31, 2023, her LTI holdings are reduced on a pro rata basis in accordance with the leaver rules. 93 Table of Contents Main Conditions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Grant Date Fair Value End of Performance End of ​ Specification ​ Grant Date ​ Grant Price (in €) ​ (in €) ​ Period ​ Vesting Period ​ Payout LTI 2020 - Tranche 2023 - FSU 3/24/2023 109.612 105.81 December 2025 12/31/2026 May 2027 LTI 2020 - Tranche 2023 - MSU ​ 3/24/2023 ​ 109.612 ​ 130.56 ​ February 2026 ​ 12/31/2026 ​ May 2027 LTI 2020 - Tranche 2023 - RSU 3/24/2023 109.612 105.81 NA 12/31/2026 May 2027 LTI 2020 - Tranche 2022 - FSU 3/28/2022 106.605 96.84 December 2024 12/31/2025 May 2026 LTI 2020 - Tranche 2022 - MSU 3/28/2022 106.605 108.20 February 2025 12/31/2025 May 2026 LTI 2020 - Tranche 2022 - RSU 3/28/2022 106.605 96.84 NA 12/31/2025 May 2026 LTI 2020 - Tranche 2021 - FSU 3/22/2021 106.405 100.28 December 2023 12/31/2024 May 2025 LTI 2020 - Tranche 2021 - MSU 3/22/2021 106.405 115.19 February 2024 12/31/2024 May 2025 LTI 2020 - Tranche 2021 - RSU 3/22/2021 106.405 100.28 NA 12/31/2024 May 2025 LTI 2020 - Tranche 2020 - FSU 2/29/2020 123.593 110.65 December 2022 12/31/2023 May 2024 LTI 2020 - Tranche 2020 - MSU 2/29/2020 123.593 122.22 February 2023 12/31/2023 May 2024 LTI 2020 - Tranche 2020 - RSU 2/29/2020 123.593 110.65 NA 12/31/2023 May 2024 LTI 2016 - Tranche 2019 - PSU ​ 2/20/2019 ​ 92.886 ​ 93.71 ​ February 2023 ​ 12/31/2022 ​ May 2023 LTI 2016 - Tranche 2019 - RSU 2/20/2019 92.886 88.54 NA 12/31/2022 May 2023 ​ End-of-Service Benefits Regular End-of-Service Undertakings Retirement Pension Plan The following retirement pension agreements apply to the individual members of the Executive Board: – Dominik Asam, Sabine Bendiek, Christian Klein, Luka Mucic, Juergen Mueller, and Thomas Saueressig are entitled to receive a retirement pension when they reach the retirement age of 62 and retire from their Executive Board seat; or a disability pension depending on a health examination if, before reaching the regular retirement age, they become subject to occupational disability or permanent incapacity.
Biggest changeFor more information about the terms and details of these programs, see the Notes to the Consolidated Financial Statements, Note (B.3) . ​ 85 Table of Contents Executive Board Members’ Holdings ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1/1/2024 ​ During the Year ​ 12/31/2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercised (E)/ ​ ​ ​ Thereof ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted (A)/ ​ ​ ​ Subject to ​ ​ Specification ​ Grant Date ​ Outstanding ​ Granted ​ Forfeited (F) ​ Outstanding ​ Holding Period ​ ​ LTI 2024 - Tranche 2024 - Market PSU ​ 3/12/2024 ​ 0 ​ 8,168 ​ 0 ​ 8,168 ​ 8,168 ​ ​ LTI 2024 - Tranche 2024 - Financial PSU ​ 3/12/2024 ​ 0 ​ 13,613 ​ 0 ​ 13,613 ​ 13,613 ​ ​ LTI 2024 - Tranche 2024 - ESG PSU ​ 3/12/2024 ​ 0 ​ 5,445 ​ 0 ​ 5,445 ​ 5,445 ​ ​ LTI 2020 - Tranche 2023 - Market PSU ​ 3/24/2023 ​ 16,726 ​ 0 ​ 0 ​ 16,726 ​ 16,726 ​ ​ LTI 2020 - Tranche 2023 - Financial PSU ​ 3/24/2023 ​ 16,726 ​ 0 ​ 0 ​ 16,726 ​ 16,726 ​ ​ LTI 2020 - Tranche 2023 - RSU ​ 3/24/2023 ​ 16,726 ​ 0 ​ 0 ​ 16,726 ​ 16,726 ​ LTI 2020 - Tranche 2022 - Market PSU ​ 3/28/2022 17,197 0 0 ​ 17,197 17,197 ​ ​ LTI 2020 - Tranche 2022 - Financial PSU ​ 3/28/2022 ​ 17,197 ​ 0 ​ 0 ​ 17,197 ​ 17,197 Christian Klein (CEO) ​ LTI 2020 - Tranche 2022 - RSU ​ 3/28/2022 ​ 17,197 ​ 0 ​ 0 ​ 17,197 ​ 17,197 ​ ​ LTI 2020 - Tranche 2021 - Market PSU ​ 3/22/2021 ​ 17,230 ​ 0 ​ 8,615 A 25,845 ​ 25,845 ​ ​ LTI 2020 - Tranche 2021 - Financial PSU ​ 3/22/2021 ​ 17,230 ​ 0 ​ 3,477 A 20,707 ​ 20,707 ​ ​ LTI 2020 - Tranche 2021 - RSU ​ 3/22/2021 ​ 17,230 ​ 0 ​ 0 ​ 17,230 ​ 17,230 ​ ​ LTI 2020 - Tranche 2020 - Financial PSU ​ 2/29/2020 ​ 8,656 ​ 0 ​ -8,656 E 0 ​ 0 ​ ​ LTI 2020 - Tranche 2020 - RSU ​ 2/29/2020 ​ 14,834 ​ 0 ​ -14,834 E 0 ​ 0 ​ ​ LTI 2024 - Tranche 2024 - Market PSU ​ 4/2/2024 ​ 0 ​ 3,068 ​ 0 ​ 3,068 ​ 3,068 Muhammad Alam (from 4/1/2024) ​ LTI 2024 - Tranche 2024 - Financial PSU ​ 4/2/2024 ​ 0 ​ 5,114 ​ 0 ​ 5,114 ​ 5,114 ​ ​ LTI 2024 - Tranche 2024 - ESG PSU ​ 4/2/2024 ​ 0 ​ 2,046 ​ 0 ​ 2,046 ​ 2,046 ​ ​ LTI 2024 – Tranche 2024 – Market PSU ​ 3/12/2024 ​ 0 ​ 5,394 ​ 0 ​ 5,394 ​ 5,394 ​ ​ LTI 2024 – Tranche 2024 – Financial PSU ​ 3/12/2024 ​ 0 ​ 8,990 ​ 0 ​ 8,990 ​ 8,990 Dominik Asam ​ LTI 2024 – Tranche 2024 – ESG PSU ​ 3/12/2024 ​ 0 ​ 3,596 ​ 0 ​ 3,596 ​ 3,596 ​ ​ LTI 2020 – Tranche 2023 – Market PSU ​ 3/24/2023 ​ 8,073 ​ 0 ​ 0 ​ 8,073 ​ 8,073 ​ ​ LTI 2020 – Tranche 2023 – Financial PSU ​ 3/24/2023 ​ 8,073 ​ 0 ​ 0 ​ 8,073 ​ 8,073 ​ ​ LTI 2020 – Tranche 2023 – RSU ​ 3/24/2023 ​ 8,073 ​ 0 ​ 0 ​ 8,073 ​ 8,073 ​ ​ LTI 2024 – Tranche 2024 – Market PSU ​ 3/12/2024 ​ 0 ​ 6,017 ​ -5,012 F 1,005 ​ 1,005 ​ ​ LTI 2024 – Tranche 2024 – Financial PSU ​ 3/12/2024 ​ 0 ​ 10,029 ​ -8,354 F 1,675 ​ 1,675 ​ ​ LTI 2024 – Tranche 2024 – ESG PSU ​ 3/12/2024 ​ 0 ​ 4,012 ​ -3,342 F 670 ​ 670 ​ ​ LTI 2020 – Tranche 2023 – Market PSU ​ 3/24/2023 ​ 8,667 ​ 0 ​ -5,054 F 3,613 ​ 3,613 ​ ​ LTI 2020 – Tranche 2023 – Financial PSU ​ 3/24/2023 ​ 8,667 ​ 0 ​ -5,054 F 3,613 ​ 3,613 ​ ​ LTI 2020 – Tranche 2023 – RSU ​ 3/24/2023 ​ 8,667 ​ 0 ​ -5,054 F 3,613 ​ 3,613 Scott Russell (until 8/31/2024) ​ LTI 2020 – Tranche 2022 – Market PSU ​ 3/28/2022 ​ 8,911 ​ 0 ​ -2,970 F 5,941 ​ 5,941 ​ LTI 2020 – Tranche 2022 – Financial PSU ​ 3/28/2022 ​ 8,911 ​ 0 ​ -2,970 F 5,941 ​ 5,941 ​ LTI 2020 – Tranche 2022 – RSU ​ 3/28/2022 ​ 8,911 ​ 0 ​ -2,970 F 5,941 ​ 5,941 ​ ​ LTI 2020 – Tranche 2021 – Market PSU ​ 3/22/2021 ​ 8,170 ​ 0 ​ 3,062 A/F 11,232 ​ 11,232 ​ LTI 2020 – Tranche 2021 – Financial PSU ​ 3/22/2021 ​ 8,170 ​ 0 ​ 829 A/F 8,999 ​ 8,999 ​ LTI 2020 – Tranche 2021 – RSU ​ 3/22/2021 ​ 8,170 ​ 0 ​ -682 F 7,488 ​ 7,488 ​ ​ LTI 2024 – Tranche 2024 – Market PSU ​ 3/12/2024 ​ 0 ​ 3,532 ​ -2,870 F 662 ​ 662 ​ ​ LTI 2024 – Tranche 2024 – Financial PSU ​ 3/12/2024 ​ 0 ​ 5,887 ​ -4,783 F 1,104 ​ 1,104 ​ ​ LTI 2024 – Tranche 2024 – ESG PSU ​ 3/12/2024 ​ 0 ​ 2,355 ​ -1,913 F 442 ​ 442 ​ ​ LTI 2020 – Tranche 2023 – Market PSU ​ 3/24/2023 ​ 6,612 ​ 0 ​ -3,720 F 2,892 ​ 2,892 ​ ​ LTI 2020 – Tranche 2023 – Financial PSU ​ 3/24/2023 ​ 6,612 ​ 0 ​ -3,720 F 2,892 ​ 2,892 ​ ​ LTI 2020 – Tranche 2023 – RSU ​ 3/24/2023 ​ 6,612 ​ 0 ​ -3,720 F 2,892 ​ 2,892 Juergen Mueller (until 9/30/2024) ​ LTI 2020 – Tranche 2022 – Market PSU ​ 3/28/2022 ​ 6,798 ​ 0 ​ -2,126 F 4,672 ​ 4,672 ​ ​ LTI 2020 – Tranche 2022 – Financial PSU ​ 3/28/2022 ​ 6,798 ​ 0 ​ -2,126 F 4,672 ​ 4,672 86 Table of Contents ​ ​ LTI 2020 – Tranche 2022 – RSU ​ 3/28/2022 ​ 6,798 ​ 0 ​ -2,126 F 4,672 ​ 4,672 ​ ​ LTI 2020 – Tranche 2021 – Market PSU ​ 3/22/2021 ​ 6,811 ​ 0 ​ 2,763 F 9,574 ​ 9,574 ​ ​ LTI 2020 – Tranche 2021 – Financial PSU ​ 3/22/2021 ​ 6,811 ​ 0 ​ 860 F 7,671 ​ 7,671 ​ LTI 2020 – Tranche 2021 – RSU ​ 3/22/2021 ​ 6,811 ​ 0 ​ -429 F 6,382 ​ 6,382 ​ LTI 2020 – Tranche 2020 – Financial PSU ​ 2/29/2020 ​ 3,422 ​ 0 ​ -3,422 E 0 ​ 0 ​ LTI 2020 – Tranche 2020 – RSU ​ 2/29/2020 ​ 5,864 ​ 0 ​ -5,864 E 0 ​ 0 ​ ​ LTI 2024 – Tranche 2024 – Market PSU ​ 3/12/2024 ​ 0 ​ 4,415 ​ 0 ​ 4,415 ​ 4,415 ​ LTI 2024 – Tranche 2024 – Financial PSU ​ 3/12/2024 ​ 0 ​ 7,358 ​ 0 ​ 7,358 ​ 7,358 ​ ​ LTI 2024 – Tranche 2024 – ESG PSU ​ 3/12/2024 ​ 0 ​ 2,943 ​ 0 ​ 2,943 ​ 2,943 ​ ​ LTI 2020 – Tranche 2023 – Market PSU ​ 3/24/2023 ​ 8,515 ​ 0 ​ 0 ​ 8,515 ​ 8,515 ​ ​ LTI 2020 – Tranche 2023 – Financial PSU ​ 3/24/2023 ​ 8,515 ​ 0 ​ 0 ​ 8,515 ​ 8,515 ​ ​ LTI 2020 – Tranche 2023 – RSU ​ 3/24/2023 ​ 8,515 ​ 0 ​ 0 ​ 8,515 ​ 8,515 Thomas Saueressig LTI 2020 – Tranche 2022 – Market PSU ​ 3/28/2022 ​ 7,125 ​ 0 ​ 0 ​ 7,125 ​ 7,125 ​ ​ LTI 2020 – Tranche 2022 – Financial PSU ​ 3/28/2022 ​ 7,125 ​ 0 ​ 0 ​ 7,125 ​ 7,125 ​ ​ LTI 2020 – Tranche 2022 – RSU ​ 3/28/2022 ​ 7,125 ​ 0 ​ 0 ​ 7,125 ​ 7,125 ​ ​ LTI 2020 – Tranche 2021 – Market PSU ​ 3/22/2021 ​ 6,811 ​ 0 ​ 3,406 A 10,217 ​ 10,217 ​ ​ LTI 2020 – Tranche 2021 – Financial PSU ​ 3/22/2021 ​ 6,811 ​ 0 ​ 1,375 A 8,186 ​ 8,186 ​ ​ LTI 2020 – Tranche 2021 – RSU ​ 3/22/2021 ​ 6,811 ​ 0 ​ 0 ​ 6,811 ​ 6,811 ​ ​ LTI 2020 – Tranche 2020 – Financial PSU ​ 2/29/2020 ​ 3,422 ​ 0 ​ -3,422 E 0 ​ 0 ​ ​ LTI 2020 – Tranche 2020 – RSU ​ 2/29/2020 ​ 5,864 ​ 0 ​ -5,864 E 0 ​ 0 ​ ​ LTI 2024 – Tranche 2024 – Market PSU ​ 3/12/2024 ​ 0 ​ 3,233 ​ 0 ​ 3,233 ​ 3,233 Gina Vargiu-Breuer (from 2/1/2024) ​ LTI 2024 – Tranche 2024 – Financial PSU ​ 3/12/2024 ​ 0 ​ 5,388 ​ 0 ​ 5,388 ​ 5,388 ​ ​ LTI 2024 – Tranche 2024 – ESG PSU ​ 3/12/2024 ​ 0 ​ 2,155 ​ 0 ​ 2,155 ​ 2,155 ​ LTI 2024 – Tranche 2024 – Market PSU ​ 3/12/2024 ​ 0 ​ 4,046 ​ -3,370 F 676 ​ 676 ​ ​ LTI 2024 – Tranche 2024 – Financial PSU ​ 3/12/2024 ​ 0 ​ 6,743 ​ -5,617 F 1,126 ​ 1,126 ​ LTI 2024 – Tranche 2024 – ESG PSU ​ 3/12/2024 ​ 0 ​ 2,697 ​ -2,247 F 450 ​ 450 ​ ​ LTI 2020 – Tranche 2023 – Market PSU ​ 3/24/2023 ​ 7,486 ​ 0 ​ -4,366 F 3,120 ​ 3,120 Julia White ​ LTI 2020 – Tranche 2023 – Financial PSU ​ 3/24/2023 ​ 7,486 ​ 0 ​ -4,366 F 3,120 ​ 3,120 (until 8/31/2024) ​ LTI 2020 – Tranche 2023 – RSU ​ 3/24/2023 ​ 7,486 ​ 0 ​ -4,366 F 3,120 ​ 3,120 ​ ​ LTI 2020 – Tranche 2022 – Market PSU ​ 3/28/2022 ​ 10,944 ​ 0 ​ -3,648 F 7,296 ​ 7,296 ​ ​ LTI 2020 – Tranche 2022 – Financial PSU ​ 3/28/2022 ​ 10,944 ​ 0 ​ -3,648 F 7,296 ​ 7,296 ​ ​ LTI 2020 – Tranche 2022 – RSU ​ 3/28/2022 ​ 10,944 ​ 0 ​ -3,648 F 7,296 ​ 7,296 ​ ​ LTI 2020 – Tranche 2021 – Market PSU ​ 3/22/2021 ​ 8,674 ​ 0 ​ 3,251 A/F 11,925 ​ 11,925 ​ ​ LTI 2020 – Tranche 2021 – Financial PSU ​ 3/22/2021 ​ 8,674 ​ 0 ​ 880 A/F 9,554 ​ 9,554 ​ ​ LTI 2020 – Tranche 2021 – RSU ​ 3/22/2021 ​ 8,674 ​ 0 ​ -724 F 7,950 ​ 7,950 Total ​ ​ ​ ​ 506,312 126,244 -118,539 ​ 514,017 514,017 ​ 87 Table of Contents Main Conditions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Grant Date Fair Value End of End of ​ Specification ​ Grant Date ​ Grant Price (in €) ​ (in €) ​ Performance ​ Vesting Period ​ Payout LTI 2024 – Tranche 2024 – Financial PSU 3/12/2024 ​ 165.71 December 2026 ​ ​ ​ ​ 4/2/2024 ​ ​ ​ 166.25 ​ ​ ​ ​ ​ ​ LTI 2024 – Tranche 2024 – Market PSU ​ 3/12/2024 ​ 163.08 ​ 201.42 ​ February 2027 ​ 12/31/2027 ​ May 2028 ​ ​ 4/2/2024 ​ ​ ​ 202.37 ​ ​ ​ ​ ​ ​ LTI 2024 – Tranche 2024 – ESG PSU 3/12/2024 ​ 165.71 February 2027 ​ ​ ​ ​ 4/2/2024 ​ ​ ​ 166.25 ​ ​ ​ ​ ​ ​ LTI 2020 – Tranche 2023 – Financial PSU ​ ​ 105.81 December 2025 ​ ​ LTI 2020 – Tranche 2023 – Market PSU 3/24/2023 109.612 130.56 February 2026 12/31/2026 May 2027 LTI 2020 – Tranche 2023 – RSU ​ ​ 105.81 NA ​ ​ LTI 2020 – Tranche 2022 – Financial PSU ​ ​ 96.84 December 2024 ​ ​ LTI 2020 – Tranche 2022 – Market PSU 3/28/2022 106.605 108.20 February 2025 12/31/2025 May 2026 LTI 2020 – Tranche 2022 – RSU ​ ​ 96.84 NA ​ ​ LTI 2020 – Tranche 2021 – Financial PSU ​ ​ 100.28 December 2023 ​ ​ LTI 2020 – Tranche 2021 – Market PSU 3/22/2021 106.405 115.19 February 2024 12/31/2024 May 2025 LTI 2020 – Tranche 2021 – RSU ​ ​ 100.28 NA ​ ​ LTI 2020 – Tranche 2020 – Financial PSU ​ ​ ​ ​ ​ 110.65 ​ December 2022 ​ ​ ​ ​ LTI 2020 – Tranche 2020 – Market PSU ​ 2/29/2020 ​ 123.593 ​ 122.22 ​ February 2023 ​ 12/31/2023 ​ May 2024 LTI 2020 – Tranche 2020 – RSU ​ ​ 110.65 NA ​ ​ ​ End-of-Service Benefits Regular End-of-Service Undertakings Retirement Pension Plan Under the new compensation system, active Executive Board members were granted a one-time right to opt to remain in the current pension plan or to receive an annual one-time payment in the form of a cash allowance that they can use for their own pension provision.
He joined SAP in 1999 and became a member of the Executive Board in 2018. On October 10, 2019 he became co-CEO alongside Jennifer Morgan and on April 20, 2020 he was appointed sole CEO. Christian oversees strategy & operations, corporate development, sustainability, business AI and compliance.
He joined SAP in 1999 and became a member of the Executive Board in 2018. On October 10, 2019 he became co-CEO alongside Jennifer Morgan and on April 20, 2020 he was appointed sole CEO. Christian oversees strategy & operations, corporate development, sustainability, business AI, compliance, corporate communications.
If an Executive Board member’s appointment to the Executive Board expires or ceases to exist because of, or as a consequence of, change or restructuring, or due to a change of control, SAP SE and each Executive Board member has the right to terminate the employment contract within eight weeks of the occurrence by giving six months’ notice.
If an Executive Board member’s appointment to the Executive Board expires or ceases because of, or as a consequence of, change or restructuring, or due to a change of control, SAP SE and each Executive Board member has the right to terminate the employment contract within eight weeks of the occurrence by giving six months’ notice.
ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES Supervisory Board The current members of the Supervisory Board of SAP SE, each member’s principal occupation, the year in which each was first elected and the year in which the term of each expires, respectively, are as follows: Name Age Principal Occupation Year First Elected Year Term Expires Prof. Dr. h.c. mult.
ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES Supervisory Board The current members of the Supervisory Board of SAP SE, each member’s principal occupation, the year in which each was first elected and the year in which the term of each expires, respectively, are as follows: Name Age Principal Occupation Year First Elected Year Term Expires Dr. h. c. mult.
This means that the underlying services were fully rendered by the end of the reporting year, although payout only occurs after the end of the reporting year, in order to make reporting transparent and comprehensible and in order to ensure a connection between performance and compensation in the reporting period.
This means that the underlying services were fully rendered by the end of the reporting year, although payout occurs only after the end of the reporting year to make reporting transparent and comprehensible and to ensure a connection between performance and compensation in the reporting period.
Other employee representatives include the group works council (composed of members of the works councils of SAP SE, SAP Germany, hybris GmbH, Concur (Germany) GmbH and Emarsys Interactive Services GmbH (Germany)), the representatives of severely disabled persons in SAP SE and SAP Germany and the spokespersons committee as the representation of the executives of SAP SE (Germany).
Other employee representatives include the group works council (composed of members of the works councils of SAP SE, SAP Germany, Concur (Germany) GmbH and Emarsys Interactive Services GmbH (Germany)), the representatives of severely disabled persons in SAP SE and SAP Germany and the spokespersons committee as the representation of the executives of SAP SE (Germany).
The Supervisory Board has to agree before an Executive Board member assumes any roles on supervisory boards or similar bodies at companies outside the Group and will decide in the individual case whether and to what extent any compensation is to be offset against compensation paid by SAP.
The Supervisory Board has to agree before an Executive Board member assumes any roles on supervisory boards or similar bodies at companies outside the Group and will decide in each case whether and to what extent any compensation is to be offset against compensation paid by SAP.
Certain current members of the Supervisory Board of SAP SE were members of supervisory boards and comparable governing bodies of enterprises other than SAP SE in Germany and other countries as of December 31, 2023. See Note (G.4) to our Consolidated Financial Statements for more detail.
Certain current members of the Supervisory Board of SAP SE were members of supervisory boards and comparable governing bodies of enterprises other than SAP SE in Germany and other countries as of December 31, 2024. See Note (G.4) to our Consolidated Financial Statements for more detail.
The members of the Executive Board of SAP SE as of December 31, 2023 that are members on other supervisory boards and comparable governing bodies of enterprises, other than SAP, in Germany and other countries, are set forth in Note (G.4) to our Consolidated Financial Statements.
The members of the Executive Board of SAP SE as of December 31, 2024 that are members on other supervisory boards and comparable governing bodies of enterprises, other than SAP, in Germany and other countries, are set forth in Note (G.4) to our Consolidated Financial Statements.
Comparative Information on the Change of Compensation and Company Performance The following table discloses the relative change in compensation of active as well as former Executive Board members, the average compensation of the employees of the SAP Group (full-time equivalents), and year-over-year changes in selected earnings indicators.
Comparative Information on the Change of Compensation and Company Performance The following table discloses the relative change in compensation of active and former Executive Board members, the average compensation of the employees of the SAP Group (full-time equivalents), and year-over-year changes in selected earnings indicators.
In accordance with the German Corporate Governance Code (GCGC), the Supervisory Board will offset any severance payments against such compensation for abstention. The following table presents the theoretical amounts for the net present values of the postcontractual non-compete abstention payments.
In accordance with the German Corporate Governance Code (GCGC), the Supervisory Board will offset any severance payments against such compensation for abstention. The following table presents the hypothetical amounts for the net present values of the postcontractual non-compete abstention payments.
Long-Term Incentive The SAP Long-Term Incentive Program 2020 (LTI 2020) is granted in annual tranches and reflects SAP's long-term strategy and thus sets uniform incentives for the Executive Board members to achieve key targets from the long-term strategic plans.
Long-Term Incentive The SAP Long-Term Incentive Program 2024 (LTI 2024) is granted in annual tranches and reflects SAP’s long-term strategy and thus sets uniform incentives for the Executive Board members to achieve key targets from the long-term strategic plans.
KG (SAP Germany), hybris GmbH (Germany), Concur (Germany) GmbH, and Emarsys Interactive Services GmbH (Germany) are represented by separate works councils.
KG (SAP Germany), Concur (Germany) GmbH, and Emarsys Interactive Services GmbH (Germany) are represented by separate works councils.
The calculation assumes the following: - The Executive Board member leaves SAP at the end of their respective current contract term. - Their final average contractual compensation prior to their departure equals their compensation in 2023.
The calculation assumes the following: - The Executive Board member leaves SAP at the end of their respective current contract term. - Their final average contractual compensation prior to their departure equals their compensation in 2024.
The performance factor depends on the amount of the total shareholder return (TSR) on the SAP share, measured for an entire performance period of approximately three years, and ranked in relation to the TSR performance of the companies of the NASDAQ-100 Index (Index). TSR reflects the performance of the share, combining share price development and granted and reinvested dividends.
The market performance factor depends on the amount of the total shareholder return (TSR) on SAP share, measured for an entire performance period of approximately three years, and ranked in relation to the TSR performance of the companies in the NASDAQ-100 Index (Index). TSR reflects the performance of share, combining share price changes and granted and reinvested dividends.
On a corporate level, all employees of SAP in the member states of the European Union (including the United Kingdom for a transition period until May 2024) and in the contract states of the European Economic Area are represented by the SAP SE Works Council (WoC) (Europe).
On a corporate level, all employees of SAP in the member states of the European Union (with the United Kingdom included for a transition period until May 2024) and in the contract states of the European Economic Area are represented by the SAP SE Works Council (WoC) (Europe).
Therefore, the STI 2023 and the LTI 2020 tranche 2020 are both reported in 2023. The compensation awarded and due related to the LTI 2020 tranche 2020 is disclosed with the share price at year end and the performance factor of the PSUs at year end.
Therefore, the STI 2024 and the LTI 2020 tranche 2021 are both reported in 2024. The compensation awarded and due related to the LTI 2020 tranche 2021 is disclosed with the share price at year-end and the performance factor of the PSUs at year end.
Foreign Currency Exchange Rate Cap Where the fixed compensation and the STI are paid out in the Executive Board member's home currency, the total (gross) payout amount resulting from the fixed compensation and the STI for a financial year is limited to a maximum euro equivalent in case of exchange rate fluctuations.
Foreign Currency Exchange Rate Cap Where the non-performance-based compensation and the STI are paid out in the Executive Board member's home currency, the total (gross) payout amount resulting from the non-performance-based compensation and the STI for a financial year is limited to a maximum euro equivalent in case of exchange rate fluctuations.
In accordance with section G.13 of the GCGC, payments made to an Executive Board member due to early termination must not exceed twice the annual total compensation. The annual total compensation is defined as the individual total target compensation comprised of the fixed compensation element and the two performance-based elements.
In accordance with section G.13 of the GCGC, payments made to an Executive Board member due to early termination must not exceed twice the annual total compensation. The annual total compensation is defined as the individual total target compensation comprised of the annual base salary and the two performance-based elements.
Offsetting Compensation in Case of Roles Assumed Inside and Outside the Group At the request of the Supervisory Board, the Executive Board member will assume roles on the supervisory board or similar bodies at affiliates of SAP without receiving separate compensation.
Offsetting Compensation for Roles Assumed Inside and Outside the Group At the request of the Supervisory Board, the Executive Board member will assume roles on the supervisory board or similar bodies at affiliates of SAP without receiving separate compensation.
The insurance covers the personal liability of the insured group for financial loss caused by its managerial acts and omissions. The current D&O policy includes an individual deductible for Executive Board members of SAP SE as required by section 93 (2) of the AktG.
The insurance covers the personal liability of the insured group for financial loss caused by its managerial acts and omissions. The current D&O policy includes an individual deductible for Executive Board members of SAP SE as required by section 93 (2) of the German Stock Corporation Act.
If the Supervisory Board appoints a Lead Independent Director, the Lead Independent Director shall receive compensation of €50,000 per year in addition to his or her basic compensation and in addition to his or her compensation for any memberships in committees.
If the Supervisory Board appoints a Lead Independent Director, the Lead Independent Director shall receive compensation of €50,000 per year in addition to their basic compensation and in addition to their compensation for any memberships in committees.
To our knowledge, there are no family relationships among any of the Supervisory Board and Executive Board members. 73 Table of Contents Compensation Report Compensation for Executive and Supervisory Board Members This compensation report describes the two compensation systems for Executive and Supervisory Board members, outlines the criteria that apply to the compensation for the year 2023, and discloses the amount of compensation.
To our knowledge, there are no family relationships among any of the Supervisory Board and Executive Board members. Compensation Report Compensation for Executive and Supervisory Board Members This compensation report describes the two compensation systems for Executive and Supervisory Board members, outlines the criteria that apply to the compensation for the year 2024, and discloses the amount of compensation.
Accordingly, an amount is paid out for each Share Unit (subject to the specifics described below) which equals the then-current SAP share price plus those dividends that were disbursed in respect of an SAP share in the period from the beginning of the year in which the Share Units were awarded until the end of the third year following the year in which the Share Units were awarded.
Accordingly, an amount is paid out for each PSU (subject to the specifics described below) that equals the then-current SAP share price plus the dividends disbursed in respect of an SAP share in the period from the beginning of the year in which the PSU were granted until the end of the third year following the year in which the PSU were granted.
In case Share Units are forfeited in part, the percentage of the forfeiture is proportional to the four-year vesting period of each grant. This means that 25% of the grant is earned each year of the vesting period.
Where share units are forfeited in part, the percentage of the forfeiture is proportional to the four-year vesting period of each grant. This means that 25% of the grant is earned each year of the vesting period. Unearned grants are forfeited.
Rouven Westphal 3, 5, 6, 7, 9 51 Member of the Executive Board of the Hasso Plattner Foundation and Managing Director of the General Partner of HPC Germany GmbH & Co. KG 2021 2026 Dr. Gunnar Wiedenfels 3, 4, 5, 7, 10 46 Chief Financial Officer, Warner Bros.
Rouven Westphal 3, 5, 7 52 Member of the Executive Board of the Hasso Plattner Foundation and Managing Director of the General Partner of HPC Germany GmbH & Co. KG 2021 2026 Dr. Gunnar Wiedenfels 4, 5, 7, 9 47 Chief Financial Officer, Warner Bros.
If, in exceptional cases, it is impossible to rule out compensation for a role assumed within the Group, it will be offset against the other compensation due to the Executive Board member.
If, in exceptional cases, compensation is, however, paid for a role assumed within the Group, it will be offset against the other compensation due to the Executive Board member.
This new policy requires the Supervisory Board to recoup incentive-based compensation from current and former Executive Board members in the case of a restatement of financial statements arising from material non-compliance with any financial reporting requirement under the U.S. federal securities laws that impacts the calculation of incentive-based compensation paid out in the last three years.
This policy requires the Supervisory Board to recoup incentive-based compensation from current and former Executive Board members in the event that financial statements are restated due to material non-compliance with any financial reporting requirement under the U.S. federal securities laws that impacts the calculation of incentive-based compensation paid out in the last three years.
The compensation system for Executive Board members was approved by the Annual General Meeting on May 20, 2020, and the compensation system for Supervisory Board members was approved by the Annual General Meeting on May 11, 2023. The current compensation report meets the requirements of section 162 of the German Stock Corporation Act (AktG).
The compensation system for the Executive Board members was approved by the Annual General Meeting on May 11, 2023, and the compensation system for the Supervisory Board members was approved by the Annual General Meeting on May 15, 2024. 64 Table of Contents The current compensation report meets the requirements of section 162 of the German Stock Corporation Act (AktG).
Securities and Exchange Commission and the New York Stock Exchange for companies listed in the United States, including foreign private issuers such as SAP, SAP adopted a clawback policy that is applicable as of October 2, 2023.
Securities and Exchange Commission and the New York Stock Exchange for companies listed in the United States, including foreign private issuers such as SAP, SAP adopted a clawback policy in 2023.
The sustainability KPIs have a total weighting of 20%, and comprise Customer Net Promoter Score, which measures SAP’s customer loyalty; Employee Engagement Index, which measures SAP’s employee commitment, pride, and loyalty; and Carbon Impact, which measures SAP’s greenhouse gas emissions. The KPIs and their respective target values are derived from SAP’s budget for the respective year.
The non-financial KPIs have a total weighting of 20%, and comprise the Customer Net Promoter Score, which measures SAP’s customer loyalty; and the Employee Engagement Index score, which measures SAP’s employee commitment, pride, and loyalty. The KPIs and their respective target values are derived from SAP’s budget for the respective year.
(Korea), SAP North West Africa Ltd. (Maroc), SAP Slovensko s.r.o. (Slovakia), SAP sistemi, aplikacije in produkti za obdelavo podatkov d.o.o. (Slovenia), SAP Romania SRL, SAP Svenska Aktiebolag (Sweden), SAP UK Ltd., and SAP Ireland Ltd. are represented by works councils, worker representatives, employee consultation forums and/or unions.
(Slovakia), SAP sistemi, aplikacije in produkti za obdelavo podatkov d.o.o. (Slovenia), SAP Romania SRL, SAP Svenska Aktiebolag (Sweden), SAP UK Ltd., and SAP Ireland Ltd. are represented by works councils, worker representatives, employee consultation forums and/or unions.
Apart from pension obligations for employees, SAP SE has not entered into contracts with any member of the Supervisory Board that provide for benefits upon a termination of the employment or service of the member. 72 Table of Contents Executive Board The current members of the Executive Board, the year in which each member was first appointed and the year in which the term of each expires, respectively, are as follows: Name Year First Appointed Year Current Term Expires Christian Klein, CEO 2018 2025 Dominik Asam 2023 2026 Jürgen Müller 2019 2024 Scott Russell 2021 2027 Thomas Saueressig 2019 2025 Gina Vargiu - Breuer ​ 2024 ​ 2027 Julia White ​ 2021 ​ 2027 ​ A description of the management responsibilities and backgrounds of the current members of the Executive Board are as follows: Christian Klein, CEO (Vorstandssprecher), 43 years old, holds a diploma in international business administration from the University of Cooperative Education in Mannheim, Germany.
Apart from pension obligations for employees, SAP SE has not entered into contracts with any member of the Supervisory Board that provide for benefits upon a termination of the employment or service of the member. ​ 63 Table of Contents Executive Board The current members of the Executive Board, the year in which each member was first appointed and the year in which the term of each expires, respectively, are as follows: Name Year First Appointed Year Current Term Expires Christian Klein, CEO 2018 2028 Muhammad Alam 2024 2027 Dominik Asam 2023 2026 Thomas Saueressig 2019 2028 Sebastian Steinhaeuser 2025 2028 Gina Vargiu-Breuer ​ 2024 ​ 2027 ​ A description of the management responsibilities and backgrounds of the current members of the Executive Board are as follows: Christian Klein, CEO (Vorstandsvorsitzender), 44 years old, holds a diploma in international business administration from the University of Cooperative Education in Mannheim, Germany.
Comparative Information on the Change of Compensation and Company Performance The following table discloses the relative change in compensation of active as well as former Supervisory Board members, the average compensation of the SAP employees (full-time equivalents), and year-over-year changes in selected earnings indicators. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2019 to 2018 2020 to 2019 2021 to 2020 2022 1) 2022 to 2021 2023 1) 2023 to 2022 1) ​ ​ Change in % ​ Change in % ​ Change in % ​ € thousands ​ Change in % ​ € thousands ​ Change in % ​ Current Supervisory Board Members ​ Prof.
Comparative Information on the Change of Compensation and Company Performance The following table discloses the relative change in compensation of active and former Supervisory Board members, the average compensation of all SAP employees (full-time equivalents), and year-over-year changes in selected earnings indicators. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 to 2019 2021 to 2020 2022 to 2021 2023 1) 2023 to 2022 1) 2024 1) 2024 to 2023 1) ​ ​ Change in % ​ Change in % ​ Change in % ​ € thousands ​ Change in % ​ € thousands ​ Change in % ​ Current Supervisory Board Members ​ Dr. h. c. mult.
LTI Forfeiture Rule If an Executive Board member’s service contract is terminated before the end of the third year following the year in which the Share Units were granted, the PSUs (FSUs, MSUs) and RSUs are forfeited in whole or in part, depending on the circumstances of the relevant resignation from office or termination of the service contract.
LTI Forfeiture Rule If an Executive Board member’s service contract is terminated before the end of the third year following the year in which the share units were granted, the PSUs are forfeited in whole or in part, depending on the circumstances in which the member resigns from office or the service contract is terminated.
For the fixed compensation and the STI paid out in the Executive Board member’s home currency, the amounts are converted to euro for reporting purposes. While for the fixed compensation and fringe benefits conversion into euro the annual average exchange rate applies, the STI is converted with the exchange rate at year end.
For the non-performance-based compensation and the STI paid out in the Executive Board member’s home currency, the amounts are converted to euro for reporting purposes. While for the non-performance-based compensation conversion into euro the annual average exchange rate applies, the STI is converted using the exchange rate at year-end.
Retirement Pension The retirement pension plan that applies at SAP is based on defined contributions. For Executive Board members whose permanent place of residence is outside Germany, SAP may specify a retirement pension plan that applies for employees at a company belonging to the SAP Group in the relevant country, limited to 30% of fixed compensation.
For Executive Board members whose permanent place of residence is outside Germany, SAP may specify a retirement pension plan that applies for employees at a company belonging to the SAP Group in the relevant country.
The euro cap for a full financial year equals 120% each for the sum of the fixed compensation and STI target amount converted into euro plus 20% of the grant amount for a tranche under the LTI 2020.
The euro cap for a full financial year equals 120% each for the sum of the non-performance-based compensation and STI target amount converted into euros plus 20% of the grant amount for a tranche under the LTI 2024.
For conversion purposes from home currency into euro, for fixed compensation the average exchange rate and for the one-year variable compensation the year-end exchange rate of the respective period applies. The difference to the contractual exchange rate is disclosed.
For purposes of converting the amounts from the home currency into euro, for non-performance-based compensation the average exchange rate, and for the one-year variable compensation the year-end exchange rate, of the respective period applies. The difference to the contractual exchange rate is disclosed.
The compensation contains performance-based elements and non-performance-based elements, as follows: The amount of performance-based compensation depends primarily on SAP’s performance against predefined target values (Key Performance Indicators, KPIs) and on the SAP share price, and is subject to hurdles and caps.
The amount of performance-based compensation depends on the performance of SAP’s KPIs (key performance indicators) against predefined target values and on SAP’s share price, and is subject to hurdles and caps.
For the actual payout of the STI, which is due after the annual shareholders meeting, the exchange rate at payout will apply.
For the payout of the STI non-deferral (which is due after the annual general meeting of shareholders) and the STI deferral, the exchange rate at payout will apply.
The compensation of Executive Board members is considered in accordance with section 162 of the AktG awarded and due. The presentation of average employee compensation is based on the average full-time equivalent number of employees in the respective year.
The compensation awarded and due to Executive Board members is presented in accordance with section 162 of the German Stock Corporation Act. The presentation of average employee compensation is based on the average full-time equivalent number of employees in the respective year.
Decisions for 2023 No corrections were made to the payout amounts for the STI 2022 or LTI 2016 Plan tranche 2019 paid in May 2023. The Supervisory Board did not request that any Executive Board member return payments (clawback provision).
Decisions for 2024 No adjustments were made to the payout amounts for the STI 2023 or LTI 2020 tranche 2020 paid in May 2024. The Supervisory Board did not request that any Executive Board member return payments under the clawback provision.
Rouven Westphal 165.0 ​ 53.4 ​ 143.8 ​ 46.6 ​ 308.8 ​ 165.0 ​ 51.0 ​ 158.3 ​ 49.0 ​ 323.3 Dr.
Rouven Westphal 165.0 ​ 53.5 ​ 143.3 ​ 46.5 ​ 308.3 ​ 165.0 ​ 53.4 ​ 143.8 ​ 46.6 ​ 308.8 Dr.
The total loss of compensation was €3.85 million. The distribution of this amount reflects the nature and timing of the forfeited compensation as far as possible within the SAP compensation system. This results for 2023 in an STI of €0.43 million, an LTI grant of €0.6 million, and a replacement award of €1.6 million.
The total loss of compensation was €3.85 million. The distribution of this amount reflects the nature and timing of the forfeited compensation as far as possible under the SAP compensation system. This results for 2024 in an STI of €0.51 million and an LTI grant of €0.71 million.
The STIs for the years 2019 to 2022 were already paid out.
The STIs for the years 2020 to 2023 were already paid out.
Gunnar Wiedenfels (from 5/15/2019) ​ NA ​ 50 ​ 0 ​ 310 ​ 52 ​ 300 ​ -3 ​ James Wright (from 5/15/2019) ​ NA ​ 50 ​ 0 ​ 285 ​ 40 ​ 285 ​ 0 ​ Former Supervisory Board Members ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Prof. Dr.
Gunnar Wiedenfels (from 5/15/2019) ​ 50 ​ 0 ​ 52 ​ 300 ​ -3 ​ NA ​ NA ​ Former Supervisory Board Members ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Prof. Dr. h. c. mult.
The chairperson receives € 275,000 and the deputy chairperson € 220,000 annually. In addition, we reimburse members of the Supervisory Board for the value-added tax payable on their compensation.
Each member of the Supervisory Board receives, in addition to the reimbursement of their expenses, an annual basic compensation of € 165,000. The chairperson receives €600,000 and the deputy chairperson € 220,000 annually. In addition, we reimburse members of the Supervisory Board for the value-added tax payable on their compensation.
Gunnar Wiedenfels ​ 165.0 ​ 55.0 ​ 135.0 ​ 45.0 ​ 300.0 ​ 165.0 ​ 53.3 ​ 144.6 ​ 46.7 ​ 309.6 James Wright ​ 165.0 ​ 57.9 ​ 120.0 ​ 42.1 ​ 285.0 ​ 165.0 ​ 57.9 ​ 120.0 ​ 42.1 ​ 285.0 Total 3,185.4 ​ 2,241.9 ​ 5,427.3 3,148.8 ​ 2,057.7 ​ 5,206.4 ​ In 2023, we received services from members of the Supervisory Board (including services from employee representatives on the Supervisory Board in their capacity as employees of SAP) in the amount of €1,959,000 (2022: €1,855,000). ​ 99 Table of Contents Long-Term Incentives for the Supervisory Board We do not offer members of the Supervisory Board share-based payment for their Supervisory Board work.
Gunnar Wiedenfels ​ 165.0 ​ 52.9 ​ 146.7 ​ 47.1 ​ 311.7 ​ 165.0 ​ 55.0 ​ 135.0 ​ 45.0 ​ 300.0 James Wright (until 5/15/2024) ​ 68.8 ​ 51.6 ​ 64.6 ​ 48.4 ​ 133.3 ​ 165.0 ​ 57.9 ​ 120.0 ​ 42.1 ​ 285.0 Total 3,507.5 ​ 2,071.2 ​ 5,578.7 3,185.4 ​ 2,241.9 ​ 5,427.3 ​ In 2024, we received services from members of the Supervisory Board (including services from employee representatives on the Supervisory Board in their capacity as employees of SAP) in the amount of €1,987,000 (2023: €1,959,000). ​ Long-Term Incentives for the Supervisory Board We do not offer members of the Supervisory Board share-based payment for their Supervisory Board work.
Hasso Plattner, the chairperson of the Supervisory Board, entered into a consulting contract with SAP after joining the Supervisory Board in May 2003. The contract does not provide for any compensation. The only cost we incurred under the contract was the reimbursement of expenses.
Hasso Plattner, who resigned in May 2024 as chairperson of the Supervisory Board, entered into a consulting contract with SAP after joining the Supervisory Board in May 2003. The contract does not provide for any compensation.
The benchmarking was conducted in January 2023 based on the compensation data from the DAX 40 companies as well as selected U.S.-based IT and other technology companies. 62 This benchmark was the basis for all compensation decisions made for 2023 and led to no changes.
The annual benchmarking is based on the compensation data from the DAX 40 companies as well as selected U.S.-based IT and other technology companies. 24 The benchmark was the basis for all compensation decisions made in 2024.
If a deputy chairperson is appointed for a committee, he or she receives €43,500 per year, and €72,500 per year for the Audit and Compliance Committee. The fixed remuneration is payable after the end of the year.
If a deputy chairperson is appointed to a committee, he or she receives €43,500 per year, and €72,500 per year for the Audit and Compliance Committee. The chairperson of the Supervisory Board shall not receive any additional compensation for chairing, or being a member of, any committees. The fixed remuneration is payable after the end of the year.
The Supervisory Board reviews, assesses, and sets the target compensation in its first meeting of each fiscal year (February 22, 2023, for 2023). The Supervisory Board is of the opinion that this approach ensures that the compensation is appropriate. The compensation system is designed to support long - term growth in the Company’s value.
The Supervisory Board reviews, assesses, and sets the target total compensation in its first meeting of each fiscal year (February 21, 2024, for 2024). The Supervisory Board is of the opinion that this approach ensures that the compensation is appropriate.
In such case, the Executive Board member is obliged to repay to SAP the amount by which the payment actually made exceeds the payment amount due on the basis of the targets actually achieved. In addition, in compliance with new requirements by the U.S.
In this event, the Executive Board member is obliged to repay to SAP the amount by which the initial payment exceeds the amended payment as determined on the basis of the targets actually achieved. 76 Table of Contents In addition, in compliance with requirements issued by the U.S.
The LTI 2020 also serves to reward the Executive Board members for long-term SAP share price performance as compared to the market, thus ensuring that shareholders' interests are also honored.
The LTI 2024 is fully performance-based and rewards the Executive Board members for the long-term SAP share price performance as compared to the market, thus ensuring that shareholders’ interests are also honored. The LTI 2024 also includes ESG targets to reward the Executive Board members for the long-term sustainability of the Company.
In addition, the employees of various other SAP entities, including SAP España – Sistemas, Aplicaciones y Productos en la Informática, S.A., SAP Belgium NV/SA., SAP Israel, SAP Nederland B.V., SAP Italia Sistemi Applicazioni Prodotti in Data Processing S.p.A., SAP China Beijing Branch, all entities in the Czech Republic (SAP ČR, spol. s r.o., SAP Services s.r.o., Ariba Czech s.r.o. and Concur Czech (s.r.o.)), SAP Brasil Ltda, SAP Korea Ltd.
(Croatia), SAP Belgium NV/SA., SAP Israel, SAP Nederland B.V., SAP Italia Sistemi Applicazioni Prodotti in Data Processing S.p.A., SAP China Beijing Branch, all entities in the Czech Republic (SAP ČR, spol. s r.o., SAP Services s.r.o., Ariba Czech s.r.o. and Concur Czech (s.r.o.)), SAP Brasil Ltda, SAP Korea Ltd. (Korea), SAP North West Africa Ltd. (Maroc), SAP Slovensko s.r.o.
Unearned grants are forfeited. ​ 80 Table of Contents LTI Forfeiture Rules (including example calculation 1 ) 1 Example calculation with four tranches (grant allocation of 100%, stable share price from grant to vest, and no consideration of performance condition); Executive Board member’s contract terminates after year four (December 31, 2026). 2 As defined in the individual Executive Board members’ contracts. 3 For the definition, see the Early End-of-Service Undertakings section.
LTI Forfeiture Rules and Example Calculation 1 1 Example calculation with four tranches (grant allocation of 100%, stable share price from grant to vest, and no consideration of performance criteria); Executive Board member’s contract terminates after year four. 2 As defined in the individual Executive Board members’ contracts. 3 For the definition, see the Early End-of-Service Undertakings section. 75 Table of Contents Share Ownership Guidelines (SOG) The Executive Board members must acquire SAP shares and hold them at least for the duration of their term of office.
Qi Lu (from 12/21/2020) NA NA 1,288 270 41 270 0 ​ Gerhard Oswald (from 1/1/2019) NA 6 -3 276 24 321 16 ​ Christine Regitz ​ 4 ​ 1 ​ 5 ​ 279 ​ 34 ​ 279 ​ 0 ​ Dr. h. c.
Qi Lu (from 12/21/2020) NA 1,288 41 270 0 229 -15 ​ Gerhard Oswald (from 1/1/2019) ​ 6 ​ -3 ​ 24 ​ 321 ​ 16 ​ 320 ​ 0 ​ Dr.
A surviving dependent’s pension is paid on the death of a former member of the Executive Board, if covered. The disability pension is 100% of the vested retirement pension entitlement and is payable until the beneficiary’s 62 nd birthday, after which it is replaced by a retirement pension.
The disability pension is 100% of the vested retirement pension benefit and is payable until the beneficiary’s 62nd birthday, after which it is replaced by a retirement pension. If applicable, a widow’s or widower’s pension is paid in the event of the death of a former Executive Board member.
Directors, Senior Management and Employees — Compensation Report ” are disclosed in “ Item 7. Major Shareholders and Related-Party Transactions — Major Shareholders .” Share-Based Compensation Plans Share- Based Compensation We maintain certain share-based compensation plans. The share-based compensation from these plans result from cash-settled and equity-settled awards issued to employees.
Major Shareholders and Related-Party Transactions — Major Shareholders .” Share-Based Compensation Plans Share- Based Compensation We maintain certain share-based compensation plans. The share-based compensation from these plans result from cash-settled and equity-settled awards issued to employees. For more information on our share-based compensation plans refer to “ Item 6.
Gesche Joost (until 5/11/2023) 68.8 70.3 29.2 29.8 97.9 165.0 ​ 70.2 ​ 70.0 ​ 29.8 ​ 235.0 Margret Klein-Magar 165.0 57.9 120.0 42.1 285.0 165.0 ​ 57.9 ​ 120.0 ​ 42.1 ​ 285.0 Monika Kovachka-Dimitrova 165.0 61.1 105.0 38.9 270.0 165.0 ​ 61.1 ​ 105.0 ​ 38.9 ​ 270.0 Peter Lengler 165.0 57.9 120.0 42.1 285.0 165.0 ​ 57.9 ​ 120.0 ​ 42.1 ​ 285.0 Jennifer Xin-Zhe Li (from 5/18/2022) 165.0 55.9 130.0 44.1 295.0 110.0 ​ 60.8 ​ 70.8 ​ 39.2 ​ 180.8 Bernard Liautaud (until 5/18/2022) NA NA NA NA NA 68.8 ​ 70.3 ​ 29.2 ​ 29.8 ​ 97.9 Dr.
Gesche Joost (until 5/11/2023) NA NA NA NA NA 68.8 ​ 70.3 ​ 29.2 ​ 29.8 ​ 97.9 Margret Klein-Magar 165.0 62.4 99.6 37.6 264.6 165.0 ​ 57.9 ​ 120.0 ​ 42.1 ​ 285.0 Monika Kovachka-Dimitrova (until 5/15/2024) 68.8 61.1 43.7 38.9 112.5 165.0 ​ 61.1 ​ 105.0 ​ 38.9 ​ 270.0 Peter Lengler (until 5/15/2024) 68.8 51.6 64.6 48.4 133.3 165.0 ​ 57.9 ​ 120.0 ​ 42.1 ​ 285.0 Jennifer Xin-Zhe Li 165.0 55.9 130.0 44.1 295.0 165.0 ​ 55.9 ​ 130.0 ​ 44.1 ​ 295.0 Dr.
As the fixed compensation and the STI are determined in the Executive Board member's home currency, a maximum euro equivalent (“euro cap”) is considered to limit the exchange rate fluctuations to 20% of the sum of contractual values for fixed compensation, STI, and LTI in euros.
If the appointment term commences or ends during a financial year, the compensation is disclosed pro rata temporis. 79 Table of Contents As the non-performance-based compensation and the STI are determined in the Executive Board member’s home currency, a maximum euro equivalent (“euro cap”) is considered to limit the exchange rate fluctuations to 20% of the sum of contractual values for non-performance-based compensation, STI, and LTI in euros.
The contribution is 4% of applicable compensation up to the applicable income threshold plus 14% of applicable compensation above the applicable income threshold. For this purpose, applicable compensation is 180% of annual base salary.
The contribution is 4% of pensionable income up to the threshold for statutory pension insurance in Germany, plus 14% pensionable income above that threshold. For this purpose, pensionable income is 180% of annual base salary. The applicable threshold is the annual income threshold for statutory pension insurance in the former West German states.
The Supervisory Board – supported by its Personnel and Governance Committee – determines the compensation for each Executive Board member based on their individual role and performance in its first regular meeting of each fiscal year, following the principles that the compensation: – Promotes the business strategy – Ensures that extraordinary performance is appropriately rewarded and any failure to achieve specific targets triggers a tangible reduction in the compensation – Is in line with market standards in terms of its level and structure and reflects the Company's size, complexity, and economic situation – Takes account of the pay structure in the Company as a whole.
Building on this structure, the compensation system seeks to ensure that compensation: – Promotes the business strategy – Ensures that extraordinary performance is appropriately rewarded and any failure to achieve specific targets triggers a tangible reduction in the compensation – Is in line with market standards in terms of its level and structure and reflects the Company's size, complexity, and economic situation – Takes account of the pay structure in the Company as a whole.
Agreements with Executive Board Members for Early End-of-Service Luka Mucic reached a mutual agreement with the Supervisory Board to end his employment at SAP with effect on March 31, 2023.
Agreements with Executive Board Members for Early End-of-Service Juergen Mueller reached a mutual agreement with the Supervisory Board to end his employment at SAP effective September 30, 2024.
These KPIs and their target values as well as their weighting are set by the Supervisory Board each year and are aligned to the SAP budget for that year or to SAP’s externally communicated financial ambitions. 74 Table of Contents The Supervisory Board sets the individual total target compensation for each Executive Board member, comprised of the fixed compensation element and the two performance-based elements.
These KPIs, their target values, and their weighting are reviewed and set by the Supervisory Board each year and are aligned to the SAP budget for that year or to SAP’s externally communicated financial ambitions. The individual elements of SAP’s Executive Board compensation are described in more detail below.
For more information on our share-based compensation plans refer to “ Item 6. Directors, Senior Management and Employees — Compensation Report ” and Note (B.3) to our Consolidated Financial Statements.
Directors, Senior Management and Employees — Compensation Report ” and Note (B.3) to our Consolidated Financial Statements.
The individual elements of SAP’s Executive Board compensation are described in more detail below. Non-Performance-Based Compensation Fixed Compensation The fixed compensation is paid monthly in 12 equal installments in the Executive Board member’s home currency. Home currency is the currency of the Executive Board member’s primary place of residence.
Non-Performance-Based Compensation Annual Base Salary The annual base salary is paid monthly in equal installments in the Executive Board member’s home currency. Home currency is the currency of the Executive Board member’s primary place of residence.
He joined SAP in March 2023 as Chief Financial Officer (CFO) and member of the Executive Board, succeeding Luka Mucic who left SAP on March 31, 2023. He is responsible for finance and administration including legal, investor relations, internal audit, data protection and export control.
He also holds a master’s degree in business administration from INSEAD (European Institute of Business Administration). He joined SAP in March 2023 as Chief Financial Officer (CFO) and member of the Executive Board. He is responsible for global finance and administration including legal, investor relations, internal audit, data protection and export control as well as government affairs.
Compensation for Executive Board Members Compensation System The compensation for Executive Board members is intended to reflect the demanding role of Executive Board members leading a global company in a rapidly evolving sector.
The compensation report for 2023 was approved by the Annual General Meeting on May 15, 2024. Compensation for Executive Board Members Compensation System The compensation for Executive Board members is intended to reflect the demanding responsibilities of Executive Board members leading a global company in a rapidly evolving sector.
For each member of the Executive Board, the following tables disclose the compensation awarded and due as well as the contractual compensation in the reporting year. 84 Table of Contents Contractual Compensation The contractual compensation shows the target amounts agreed in the individual employment contracts, including fringe benefits, and corresponds to a target achievement of 100% for the respective periods.
Contractual Compensation The contractual compensation shows the target amounts agreed in the individual employment contracts, including fringe benefits, and corresponds to a target achievement of 100% for the respective periods.
When determining the compensation structure and the target compensation for the individual members of the Executive Board, the Supervisory Board must ensure that the potential payments, taking the STI and LTI caps into account, cannot exceed the maximum compensation and the maximum total compensation.
When determining the compensation structure and the target compensation for the individual members of the Executive Board, the Supervisory Board ensured that the potential payments, did not exceed maximum compensation.
Clawback Provisions and Clawback Policy SAP has the contractual right to request that the Executive Board member returns any payments made from the STI or LTI if it subsequently emerges that the payment was not justified in whole or in part because targets were not achieved at all or not achieved in the scope assumed when calculating the payment amount due on account of false information having been provided.
Clawback Provisions and Clawback Policy SAP has the contractual right to request that an Executive Board member return any payments made from the STI or LTI if it subsequently emerges that the information used to determine the payout was inaccurate and that therefore the amount paid out was not justified, either in whole or in part, because targets were either not achieved or not achieved to the extent initially assumed.
As far as the law permits, we indemnify Supervisory Board members against, and hold them harmless from, claims brought by third parties. To this end, we maintain directors’ and officers’ (D&O) group liability insurance. In accordance with our Articles of Incorporation, the premiums for the insurance policy are paid by SAP.
The only cost we incurred under the contract was the reimbursement of expenses. 95 Table of Contents As far as the law permits, we indemnify Supervisory Board members against, and hold them harmless from, claims brought by third parties. To this end, we maintain directors’ and officers’ (D&O) group liability insurance.
Due to the potential change in the number of FSUs and MSUs, the maximum possible payout amount under any of the annual tranches of the LTI 2020 is thus approximately 267% of the grant amount. Currency exchange rate risks are borne by the Executive Board members.
Due to the potential change in the number of PSUs, the maximum possible payout amount under any of the annual tranches of the LTI 2024 is thus 300% of the grant amount. Currency exchange rate risks are borne by the Executive Board members. However, under certain conditions, each type of PSU may expire during the term of a tranche.
Students, individuals employed by SAP but currently not working for reasons such as maternity/parental leave, and temporary employees on limited contracts of less than six months are excluded from our figures. The number of temporary employees is not material. The personnel expense for each employee is defined as the overall personnel expense divided by the average number of employees.
We define headcount in FTE as the number of people on permanent employment contracts, taking into account their staffing percentage. Students, individuals employed by SAP but currently not working for reasons such as maternity/parental leave, and temporary employees on limited contracts of less than six months are excluded from our figures.
Qi Lu 165.0 61.1 105.0 38.9 270.0 165.0 ​ 61.1 ​ 105.0 ​ 38.9 ​ 270.0 Gerhard Oswald 165.0 51.4 156.3 48.6 321.3 165.0 ​ 59.7 ​ 111.2 ​ 40.3 ​ 276.2 Christine Regitz ​ 165.0 ​ 59.2 ​ 113.5 ​ 40.8 ​ 278.5 ​ 165.0 ​ 59.2 ​ 113.5 ​ 40.8 ​ 278.5 Dr. h. c.
Qi Lu ​ 165.0 ​ 72.0 ​ 64.2 ​ 28.0 ​ 229.2 ​ 165.0 ​ 61.1 ​ 105.0 ​ 38.9 ​ 270.0 César Martin (from 5/15/2024) ​ 110.0 ​ 66.0 ​ 56.7 ​ 34.0 ​ 166.7 ​ NA ​ NA ​ NA ​ NA ​ NA Gerhard Oswald ​ 165.0 ​ 51.5 ​ 155.4 ​ 48.5 ​ 320.4 ​ 165.0 ​ 51.4 ​ 156.3 ​ 48.6 ​ 321.3 Christine Regitz (until 5/15/2024) ​ 68.8 ​ 59.2 ​ 47.3 ​ 40.8 ​ 116.0 ​ 165.0 ​ 59.2 ​ 113.5 ​ 40.8 ​ 278.5 Dr. h. c.
In the case of change of control, the payment must not exceed 150% of the severance payment cap. Members are not entitled to that severance payment if they have not served SAP as a member of the Executive Board for at least one year or if they leave SAP SE for reasons for which they are responsible.
The Supervisory Board may specify that Executive Board members are not entitled to such severance payment if they have not served SAP as a member of the Executive Board for at least one year.
Therefore, employee compensation is also equivalent to granted and due compensation within the meaning of section 162 of the AktG and thus in line with Executive Board and Supervisory Board compensation. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2019 to 2018 2020 to 2019 2021 to 2020 2022 1) 2022 to 2021 2023 1) 2023 to 2022 1) ​ ​ Change in % ​ Change in % ​ Change in % ​ € thousands ​ Change in % ​ € thousands ​ Change in % ​ Current Executive Board Members ​ Christian Klein (CEO) (from 1/1/2018) 7 ​ -40 ​ 425 ​ 4,674 ​ -20 ​ 7,158 ​ 53 ​ Dominik Asam (from 3/7/2023) ​ NA ​ NA ​ NA ​ NA ​ NA ​ 3,943 ​ NA ​ Sabine Bendiek (from 1/1/2021 until 12/31/2023) NA ​ NA ​ NA ​ 1,412 ​ -65 ​ 2,017 ​ 43 ​ Juergen Mueller (from 1/1/2019) NA ​ -56 ​ 307 ​ 3,210 ​ 10 ​ 3,653 ​ 14 ​ Scott Russell (from 2/1/2021) NA ​ NA ​ NA ​ 2,283 ​ 2 ​ 3,076 ​ 35 ​ Thomas Saueressig (from 11/1/2019) NA ​ 162 ​ 307 ​ 1,731 ​ -41 ​ 3,611 ​ 109 ​ Julia White (from 3/1/2021) NA ​ NA ​ NA ​ 2,280 ​ -45 ​ 2,556 ​ 12 ​ Former Executive Board Members ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Werner Brandt (until 6/30/2014) 0 ​ 2 ​ 2 ​ 102 ​ 0 ​ 110 ​ 8 ​ Michael Kleinemeier (until 4/30/2020) 57 ​ 38 ​ -65 ​ 1,617 ​ -4 ​ 1,495 ​ -8 ​ Jennifer Morgan (until 4/30/2020) 10 ​ 747 ​ -92 ​ 2,610 ​ 97 ​ 1,145 ​ -56 ​ Luka Mucic (until 3/31/2023) -36 ​ -46 ​ 127 ​ 3,248 ​ -25 ​ 11,634 ​ 258 ​ Gerhard Oswald (until 12/31/2016) -82 ​ -53 ​ 0 ​ 342 ​ 0 ​ 378 ​ 10 ​ Stefan Ries (until 5/31/2020) 61 ​ 230 ​ -80 ​ 1,497 ​ -20 ​ 523 ​ -65 ​ Earnings Indicators ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Revenue SAP Group (Non-IFRS) 12 ​ -1 ​ 2 ​ 29,520 ​ 11 ​ 31,207 ​ 6 ​ Total Revenue SAP SE (German Commercial Code) 7 ​ -4 ​ 5 ​ 17,786 ​ 16 ​ 19,018 ​ 7 ​ Operating Profit SAP Group (Non-IFRS) 15 ​ 1 ​ -1 ​ 7,989 ​ -2 ​ 8,722 ​ 9 ​ Net Income SAP SE (German Commercial Code) ​ -31 ​ 87 ​ 8 ​ 1,912 ​ -29 ​ 4,766 ​ 149 ​ Average Annual Compensation of Employees SAP Group 21 ​ -12 ​ 13 ​ 139 ​ 4 ​ 156 ​ 12 ​ ​ 1 SAP Group (non - IFRS) 2022 and 2023 from continuing operations ​ 98 Table of Contents Compensation for Supervisory Board Members Compensation System Supervisory Board members’ compensation is governed by our Articles of Incorporation, section 16.
Therefore, employee compensation is also equivalent to compensation awarded and due within the meaning of section 162 of the German Stock Corporation Act and thus in line with Executive Board and Supervisory Board compensation. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 to 2019 2021 to 2020 2022 to 2021 2023 1) 2023 to 2022 1) 2024 1) 2024 to 2023 1) ​ ​ Change in % ​ Change in % ​ Change in % ​ € thousands ​ Change in % ​ € thousands ​ Change in % ​ Current Executive Board Members ​ Christian Klein (CEO) (from 1/1/2018) -40 ​ 425 ​ -20 ​ 7,158 ​ 53 ​ 18,983 ​ 165 ​ Muhammad Alam (from 4/1/2024) ​ NA ​ NA ​ NA ​ NA ​ NA ​ 1,936 ​ NA ​ Dominik Asam (from 3/7/2023) NA ​ NA ​ NA ​ 3,943 ​ NA ​ 3,281 ​ -17 ​ Thomas Saueressig (from 11/1/2019) 162 ​ 307 ​ -41 ​ 3,611 ​ 109 ​ 8,241 ​ 128 ​ Gina Vargiu-Breuer (from 2/1/2024) NA ​ NA ​ NA ​ NA ​ NA ​ 2,109 ​ NA ​ Former Executive Board Members ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sabine Bendiek (until 12/31/2023) NA ​ NA ​ -65 ​ 2,017 ​ 43 ​ 6,241 ​ 209 ​ Werner Brandt (until 6/30/2014) 2 ​ 2 ​ 0 ​ 110 ​ 8 ​ 119 ​ 8 ​ Luka Mucic (until 3/31/2023) -46 127 -25 11,634 258 4,041 -65 ​ Juergen Mueller (until 9/30/2024) -56 ​ 307 ​ 10 ​ 3,653 ​ 14 ​ 7,144 ​ 96 ​ Gerhard Oswald (until 12/31/2016) -53 ​ 0 ​ 0 ​ 378 ​ 10 ​ 400 ​ 6 ​ Scott Russell (until 8/31/2024) NA ​ NA ​ 2 ​ 3,076 ​ 35 ​ 21,459 ​ 598 ​ Julia White (until 8/31/2024) NA ​ NA ​ -45 ​ 2,556 ​ 12 ​ 17,103 ​ 569 ​ Earnings Indicators ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Revenue SAP Group (Non-IFRS, in € millions) -1 ​ 2 ​ 11 ​ 31,207 ​ 6 ​ 34,176 ​ 10 ​ Total Revenue SAP SE (German Commercial Code, in € millions) -4 ​ 5 ​ 16 ​ 19,018 ​ 7 ​ 21,412 ​ 13 ​ Operating Profit SAP Group (Non-IFRS, in € millions)2) 1 ​ -1 ​ -2 ​ 6,514 ​ 9 ​ 8,153 ​ 25 ​ Net Income SAP SE (German Commercial Code, in € millions) ​ 87 ​ 8 ​ -29 ​ 4,766 ​ 149 ​ 366 ​ -92 ​ Average Annual Compensation of Employees SAP Group3 -12 ​ 13 ​ 4 ​ 156 ​ 12 ​ 184 ​ 18 ​ ​ 1 SAP Group (non - IFRS) 2022, 2023, and 2024 from continuing operations. 2 Operating profit (non-IFRS) 2019 to 2022 based on non-IFRS metrics published in the Integrated Report 2023. 3 This average was impacted by restructuring expenses associated with the 2024 transformation program in the amount of €3.1 billion.
Punit Renjen (from 5/11/2023) ​ 146.7 ​ 64.5 ​ 80.9 ​ 35.6 ​ 227.5 ​ NA ​ NA ​ NA ​ NA ​ NA Dr.
Punit Renjen (from 5/11/2023 until 5/15/2024) ​ 91.7 ​ 75.0 ​ 30.6 ​ 25.0 ​ 122.2 ​ 146.7 ​ 64.5 ​ 80.9 ​ 35.6 ​ 227.5 Dr.

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Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeNone of the major shareholders have special voting rights. ​ ​ ​ ​ ​ Major Shareholders ​ Ordinary Shares Beneficially Owned ​ Number % of Outstanding Dietmar Hopp, collectively 1 62,548,065 ​ 5.1 Hasso Plattner, Chairperson Supervisory Board, collectively 2 37,007,518 ​ 3.012 Executive Board Members as a group (7 persons) 26,949 ​ 0.002 Supervisory Board Members as a group (18 persons) 37,035,265 ​ 3.015 Executive Board Members and Supervisory Board Members as a group (25 persons) 3 37,062,214 ​ 3.017 BlackRock, Inc. 4 76,782,227 ​ 6.3 ​ 1 The foregoisng information is based on a Schedule 13G filed by Dietmar Hopp and other affiliated persons and companies on February 11, 2022. 2 Includes Hasso Plattner Single Asset GmbH & Co.
Biggest changeNone of the major shareholders have special voting rights. ​ ​ ​ ​ ​ Major Shareholders ​ Ordinary Shares Beneficially Owned ​ Number % of Outstanding Dietmar Hopp, collectively 1 62,548,065 ​ 5.1 Executive Board Members as a group (6 persons) 37,930 ​ 0.0 Supervisory Board Members as a group (18 persons) 25,857 ​ 0.0 Executive Board Members and Supervisory Board Members as a group (24 persons) 2 63,787 ​ 0.0 BlackRock, Inc. 3 76,782,227 ​ 6.3 ​ 1 The foregoing information is based on a Schedule 13G filed by Dietmar Hopp and other affiliated persons and companies on February 11, 2022. 2 We believe that each of the members of the Supervisory Board and the Executive Board beneficially owns less than 1% of SAP SE’s ordinary shares as of February 7, 2025. 3 As required under German law, BlackRock, Inc. informed SAP that they own more than 5% of SAP's outstanding ordinary shares.
The following table sets forth certain information regarding the beneficial ownership of the ordinary shares to the extent known to SAP as of February 9, 2024 of: (i) each person or group known by SAP SE to own beneficially 5% or more of the outstanding ordinary shares; and (ii) the beneficial ownership of all individuals who are currently members of the Supervisory Board and all members of the Executive Board, individually and as a group, in each case as reported to SAP SE by such persons.
The following table sets forth certain information regarding the beneficial ownership of the ordinary shares to the extent known to SAP as of February 7, 2025 of: (i) each person or group known by SAP SE to own beneficially 5% or more of the outstanding ordinary shares; and (ii) the beneficial ownership of all individuals who are currently members of the Supervisory Board and all members of the Executive Board, individually and as a group, in each case as reported to SAP SE by such persons.
Related-Party Transactions For information on related-party transactions see Note (G.6) to our Consolidated Financial Statements. 103 Table of Contents ITEM 8. FINANCIAL INFORMATION Consolidated Financial Statements and Financial Statement Schedule See “ Item 18. Financial Statements ” and pages F-1 through F-107.
Related-Party Transactions For information on related-party transactions see Note (G.6) to our Consolidated Financial Statements. 99 Table of Contents ITEM 8. FINANCIAL INFORMATION Consolidated Financial Statements and Financial Statement Schedule See “ Item 18. Financial Statements ” and pages F-1 through F-93.
BlackRock, Inc. is not required to provide SAP with the number of shares owned as of February 9, 2024, and has not provided such information.
BlackRock, Inc. is not required to provide SAP with the number of shares owned as of February 7, 2025, and has not provided such information.
Each ADR currently represents one SAP SE ordinary share. On February 9, 2024, based on information provided by the Depositary there were 64,676,139 ADRs held of record by 654 registered holders. The ordinary shares underlying such ADRs represented 5.26% of the then-outstanding ordinary shares (including treasury stock).
Each ADR currently represents one SAP SE ordinary share. On February 7, 2025, based on information provided by the Depositary there were 70,213,035 ADRs held of record by 623 registered holders. The ordinary shares underlying such ADRs represented 5.72% of the then-outstanding ordinary shares (including treasury stock).
The principal trading market for the ordinary shares is Xetra, the electronic dealing platform of Deutsche Boerse AG. ADRs representing SAP SE ordinary shares are listed on the NYSE under the symbol “SAP,” and currently each ADR represents one ordinary share. ITEM 10.
ADRs representing SAP SE ordinary shares are listed on the NYSE under the symbol “SAP,” and currently each ADR represents one ordinary share. ITEM 10.
For further details about the program refer to the Treasury Shares section in Note E.2 . ​ 104 Table of Contents ITEM 9. THE OFFER AND LISTING Our ordinary shares are officially listed on the Frankfurt Stock Exchange, the Berlin Stock Exchange and the Stuttgart Stock Exchange.
THE OFFER AND LISTING Our ordinary shares are officially listed on the Frankfurt Stock Exchange, the Berlin Stock Exchange and the Stuttgart Stock Exchange. The principal trading market for the ordinary shares is Xetra, the electronic dealing platform of Deutsche Boerse AG.
Dividend Policy For more information on dividend policy see the disclosure in “ Item 3. Key Information — Dividends ”. Significant Changes Organizational Changes Effective January 1, 2024, the Supervisory Board established the Government Security Committee, which is responsible for SAP's corporate activities in context of national security regulations.
Dividend Policy For more information on dividend policy see the disclosure in “ Item 3. Key Information — Dividends ”. Significant Changes Extension of Thomas Saueressig Executive Board Member Contract On January 28, 2025, the company announced that the Supervisory Board extended Thomas Saueressig’s Executive Board contract for another three years until the end of October 2028.
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KG in which Hasso Plattner exercises voting and dispositive power.
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Sebastian Steinhaeuser Joins the Executive Board as Chief Operating Officer Effective February 1, 2025, the Supervisory Board appointed Sebastian Steinhaeuser to the Executive Board in the role of Chief Operating Officer. In this role, Sebastian will lead the new Strategy and Operations Executive Board area, focusing on our ongoing transformation and strategic objectives.
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This number does not include the 39,807,809 shares owned (directly or indirectly) by Hasso Plattner Foundation. 3 We believe that, other than Hasso Plattner, each of the members of the Supervisory Board and the Executive Board beneficially owns less than 1% of SAP SE’s ordinary shares as of February 9, 2024. 4 As required under German law, BlackRock, Inc. informed SAP that they own more than 5% of SAP's outstanding ordinary shares.
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Extended Board Effective February 1, 2025, the Executive Board established the Extended Board. The Extended Board is a committee of the Executive Board comprised of senior leaders from key functions and regulated by the Rules of Procedure of the Executive Board. The Executive Board appoints the Extended Board members, with the Supervisory Board providing consultation on these appointments.
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Effective February 1, 2024, Gina Vargiu-Breuer was appointed to the Executive Board of SAP as Chief People Officer and labor director. In January 2024, SAP appointed Muhammad Alam as a member of the Executive Board effective April 1, 2024. Beginning April 1, 2024, Thomas Saueressig will lead a new Board area: Customer Services & Delivery.
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Currently, the Extended Board is comprised of eight members. The Extended Board performs advisory, coordination and decision-preparation functions for the Executive Board, however the Executive Board retains ultimate responsibility for overseeing and deciding on the activities of the company. All Extended Board members report to an Executive Board member.
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On February 11, 2024, SAP announced that Punit Renjen chose to resign his mandate on the Supervisory Board effective as of the end of the Annual General Meeting scheduled for May 15, 2024. The Supervisory Board nominated Pekka-Ala-Pietilä to stand for election at the upcoming Annual General Meeting.
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The Executive Board and the Extended Board plan to meet regularly, and Extended Board members will join Executive Board meetings as relevant.
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In case of election, it is intended that Pekka-Ala-Pietilä will assume the role of Chairman of the Supervisory Board. Settlement Agreement In early January 2024, following exhaustive investigations, dialogue, and corresponding remediation activities, SAP entered into final settlement agreements with the U.S. SEC and U.S.
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Operating Segments As result of the organizational changes in the first quarter of 2025, SAP is currently assessing a separate operating segment for the services function within the Customer Services & Delivery (CS&D) Board area, led by Thomas Saueressig. ​ 100 Table of Contents ITEM 9.
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DOJ as well as with local authorities and parties in South Africa, to resolve criminal and civil claims fully and finally against SAP. For more information, see Note G.3 . Transformation Program In 2024, SAP will further increase its focus on key strategic growth areas, in particular Business AI.
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Also, it will transform its operational setup to capture organizational synergies, AI-driven efficiencies and to prepare the company for highly scalable future revenue growth. To this end, and to ensure that SAP’s skill set and resources continue to meet future business needs, SAP will execute a company-wide restructuring program in 2024.
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The majority of the approximately 8,000 affected positions is expected to be covered by voluntary leave programs and internal re-skilling measures. Restructuring expenses are projected at around €2 billion, the vast majority of which is expected to be recognized in the first half of 2024, impacting IFRS operating profit. For more information, see Note G.8 .
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Share Repurchase Program On February 14, 2024, the first tranche of the share repurchase program launched in 2023 was completed with a total volume of €1,011 million. For the volume processed until December 31, 2023, please refer to Note E.2 . On February 26, 2024, SAP launched the second tranche of the share repurchase program.

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