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What changed in SAP SE's 20-F — 2022 vs 2023

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Paragraph-level year-over-year comparison of SAP SE's 2022 and 2023 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 2023 report.

+468 added−619 removedSource: 20-F (2024-02-29) vs 20-F (2023-03-02)

Top changes in SAP SE's 2023 20-F

468 paragraphs added · 619 removed · 279 edited across 6 sections

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 14 ITEM 3. KEY INFORMATION 14 Exchange Rates 14 Dividends 14 Risk Factors 15 ITEM 4. INFORMATION ABOUT SAP 20 Strategy and Business Model 22 Seasonality 29 Security, Data Protection, and Privacy 29 Human Capital Resources ​ 32 Energy and Emissions 40 Intellectual Property, Proprietary Rights and Licenses 47 Description of Property 47
Biggest changeINFORMATION 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.
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ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE 15 ITEM 3. KEY INFORMATION 15 Exchange Rates 15 Dividends 15 Risk Factors 17 ITEM 4.
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OPERATING 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.
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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

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeItem 3. Key Information — Exchange Rates ”). The timing, declaration, amount and payment of any future dividend will depend upon our future earnings, capital needs and other relevant factors, in each case as proposed by the Executive Board and the Supervisory Board of SAP SE and approved by the Annual General Meeting of Shareholders.
Biggest changeThe timing, declaration, amount and payment of any future dividend will depend upon our future earnings, capital needs and other relevant factors, in each case as proposed by the Executive Board and the Supervisory Board of SAP SE and approved by the Annual General Meeting of Shareholders. ​ 16 Table of Contents Risk Factors Our operations and financial results are subject to various risks and uncertainties, including those described below, that could adversely affect our business, financial condition, results of operations, cash flows, and the trading price of our ADRs and ordinary shares.
Economic, Political, Social, and Regulatory Risks Global Economic and Political Environment: Uncertainty in the global economy, financial markets, and social and political instability caused by state-based conflicts, terrorist attacks, civil unrest, war, or international hostilities could lead to disruptions in our business.
Economic, Political, Social, and Regulatory Risks Global Economic and Political Environment: Uncertainty in the global economy and/or financial markets, and social and political instability caused by state-based conflicts, terrorist attacks, civil unrest, war, or international hostilities could lead to disruptions in our business.
We are subject to risks and associated consequences in the following areas, among others: failure to establish and enable a network of qualified and fully committed partners; failure of partners to develop sufficient innovative solutions and content on our platforms or to provide high-quality products or services to meet customer expectations; failure of partners to embed our solutions sufficiently enough to profitably drive product adoption; failure of partners to adhere to applicable legal and compliance regulations; failure of partners to transform their business model in accordance with the transformation of SAP’s business model in a timely manner; and the failure of partners to comply with contract terms in embargoed or high-risk countries.
We are subject to risks and associated consequences in the following areas, among others: failure to establish and enable a network of qualified and fully committed partners; failure of partners to develop sufficient innovative solutions and content on our platforms or to provide high-quality products or services to meet customer expectations; failure of partners to embed our solutions sufficiently enough to profitably drive product adoption; failure of partners to adhere to applicable legal and compliance regulations; failure of partners to transform their business model in accordance with the transformation of SAP’s business model in a timely manner; and failure of partners to comply with contract terms in embargoed or high-risk countries.
We have in the past, and believe that we will continue to be subject to, claims and lawsuits, including intellectual property infringement claims either as our solution portfolio grows; as we acquire companies with increased use of third-party code including open source code; as we expand into new industries with our offerings, resulting in greater overlap in the functional scope of offerings; and as non-practicing entities that do not design, manufacture, or distribute products assert intellectual property infringement claims.
We have in the past, and believe that we will continue to be subject to, claims and lawsuits, including intellectual property infringement claims, as our solution portfolio grows; as we acquire companies with increased use of third-party code including open source code; as we expand into new industries with our offerings, resulting in greater overlap in the functional scope of offerings; and as non-practicing entities that do not design, manufacture, or distribute products assert intellectual property infringement claims.
We could 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 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 are subject to risks and associated consequences in the following areas, among others: inability to deliver fully suitable solution and transformation services to our customers on the cloud transformation journey, both in cloud-only and hybrid scenarios; inability to successfully execute on our hyperscaler strategy; adverse, near-term revenue effects due to increasing cloud business and conversions from on-premise licenses to cloud subscriptions from existing SAP customers, which could have an adverse effect on related maintenance and services revenue; insufficient solution and service adoption together with increased complexity, as well as failures during the execution of our Intelligent Enterprise strategy in the context of our portfolio for solutions and services, which could lead to a loss of SAP’s position as a leading cloud company and subsequently to reduced customer adoption; customers and partners being reluctant or unwilling to migrate and adapt to the cloud; customers considering cloud offerings from our competitors; strategic alliances among competitors; price pressure, cost increases, and loss of market share through traditional, new, and cooperating competitors and hyperscalers; and the inability to achieve the planned margin increase in time as planned.
We are subject to risks and associated consequences in the following areas, among others: inability to deliver fully suitable solution and transformation services to our customers on the cloud transformation journey, both in cloud-only and hybrid scenarios; inability to successfully execute on our hyperscaler strategy; adverse, near-term revenue effects due to increasing cloud business and conversions from on-premise licenses to cloud subscriptions from existing SAP customers, which could have an adverse effect on related maintenance and services revenue; insufficient solution and service adoption together with increased complexity, as well as failures during the execution of our corporate strategy in the context of our portfolio for solutions and services, which could lead to a loss of SAP’s position as a leading cloud company and subsequently to reduced customer adoption; customers and partners being reluctant or unwilling to migrate and adapt to the cloud; customers considering cloud offerings from our competitors; strategic alliances among competitors; price pressure, cost increases, and loss of market share through traditional, new, and cooperating competitors and hyperscalers; and the inability to achieve the planned margin increase in time as planned.
If a divestiture is not completed for any reason, we may not be able to find another buyer on the same terms, and we may have incurred significant costs without the corresponding benefit. Any of these events could have a material adverse effect on our business, brand, competitive or financial position, profit, and cash flows.
If a divestiture is not completed for any reason, we may not be able to find another buyer on the same terms, and we may have incurred significant costs without the corresponding benefit. Any of these events could have a material adverse effect on our reputation, business, competitive or financial position, profit, and cash flows.
These include, among others: crises affecting credit or liquidity markets; regional or global recessions; sharp fluctuations in commodity prices, currency exchange rates or interest rates; inflation or deflation; sovereign debt and bank debt rating downgrades; restructurings or defaults, or adverse geopolitical events (such as Russia’s invasion of Ukraine; rising military tensions around the world (such as the China-Taiwan tensions) and in particular within Europe’s borders; and global policy including in the United States, the European Union (EU), Russia, and China); or global pandemic diseases such as COVID-19.
These include, among others: crises affecting credit or liquidity markets; regional or global recessions; sharp fluctuations in commodity prices, currency exchange rates or interest rates; inflation or deflation; sovereign debt and bank debt rating downgrades; restructurings or defaults; adverse geopolitical events (such as Russia’s invasion of Ukraine and the Israel - Hamas conflict); rising military tensions around the world (such as the China-Taiwan tensions) and in particular within Europe’s borders; global policy including in the United States, the European Union (EU), Russia, and China; and global pandemic diseases such as COVID-19.
For (i) a description of our principal capital expenditures and divestitures and the amount invested (including interests in other companies) since January 1, 2022 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, 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 “
Any of these events could have a material adverse effect on our business, brand, competitive or financial position, profit, and cash flows. Mergers and Acquisitions: We might not acquire, integrate, or divest companies or their components effectively or successfully.
Any of these events could have a material adverse effect on our reputation, business, competitive or financial position, profit, and cash flows. Mergers and Acquisitions: We might not acquire, integrate, or divest companies or their components effectively or successfully.
Any of these events could have an adverse effect on our business, financial position, profit, and cash flows. Partner Ecosystem: If we are unable to scale, maintain, and enhance an effective partner ecosystem, revenue might not increase as expected. An open and vibrant partner ecosystem is a fundamental pillar of our success and growth strategy.
Any of these events could have an adverse effect on our reputation, business, competitive or financial position, profit, and cash flows. Partner Ecosystem: If we are unable to scale, maintain, and enhance an effective partner ecosystem, revenue might not increase as expected. An open and vibrant partner ecosystem is a fundamental pillar of our success and growth strategy.
Should 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.
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.
We are subject to risks and associated consequences in the following areas, among others: failure of software products and services to fully meet market needs or customer expectations; failure of software products and services from acquired companies to fully comply with SAP quality standards; failure of new products, services, and cloud offerings, including third-party technologies, to comply with local standards and requirements; the possibility that new products, services, and cloud offerings might contain defects or might not be mature enough from the customer’s point of view for business-critical solutions after shipment despite all the due diligence SAP puts into quality; inability of algorithms to correctly adapt to evolving circumstances, which may lead to adverse decision-making processes in the context of AI-related technologies; and the inability to fulfil expectations of customers regarding time and quality in the defect resolution process.
We are subject to risks and associated consequences in the following areas, among others: failure of software products and services to fully meet market needs or customer expectations; failure of software products and services from acquired companies to fully comply with SAP quality standards; failure of new products, services, and cloud offerings, including third-party technologies, to comply with local standards and requirements; the possibility that new products, services, and cloud offerings or subsequent versions and updates to existing products, services, and cloud offerings might contain defects or security vulnerabilities, or might not be mature enough from the customer’s point of view for business-critical solutions, or might not be sufficiently secure after release or shipment despite all the due diligence SAP puts into quality; inability of algorithms to correctly adapt to evolving circumstances, which may lead to adverse decision-making processes in the context of AI-related technologies; and the inability to fulfil expectations of customers regarding time and quality in the defect resolution process.
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).
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: 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.
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.
Any of these events could have a material adverse effect on our business, brand, competitive or financial position, profit, and cash flows. ​ 18 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.
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 business, 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. 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”).
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 all judgments awarded to it in legal proceedings. The outcome of litigation and other claims or lawsuits is intrinsically uncertain. Management’s view of the litigation might also change in the future.
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.
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, anti-corruption and anti-bribery 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 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.
SAP is continuing to investigate its dealings with the public sector. Operational Business Risks Sales and Services: Sales and implementation of SAP software and services, including cloud, are subject to several significant risks sometimes beyond our direct control. A core element of our business is the successful implementation of software and service solutions.
Operational Business Risks Sales and Services: Sales and implementation of SAP software and services, including cloud, are subject to several significant risks sometimes beyond our direct control. A core element of our business is the successful implementation of software and service solutions.
To be successful, we are required to adapt our products and our go-to-market approach to a cloud-based delivery and consumption model so as to satisfy increasing customer demand and to ensure an appropriate level of adoption, customer satisfaction, and retention. ​ 19 Table of Contents 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.
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..
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..
As a European company domiciled in Germany with securities listed in Germany and the United States, we are subject to European, German, U.S., and other governance-related regulatory requirements of the countries we operate in. ​ 15 Table of Contents Our business is subject to numerous risks inherent to international business operations and associated consequences, such as changes in tax laws, changes in external reporting standards, and the interpretation of the complex tax rules in certain countries, including but not limited to conflict and overlap among tax regimes as well as the introduction of new tax concepts that harm digitalized business models; discriminatory, protectionist, or conflicting fiscal policies and tax laws; import and export regulations and trade sanctions; counter or even conflicting sanctions; embargoes, including but not limited to country-specific software certification requirements; and newly emerging and potentially conflicting environmental, social, and governance (ESG) compliance and disclosure laws.
Our business is subject to numerous risks inherent to international business operations and associated consequences, such as changes in tax laws, changes in external reporting standards, and the interpretation of the complex tax rules in certain countries, including but not limited to conflict and overlap among tax regimes as well as the introduction of new tax concepts that harm digitalized business models; discriminatory, protectionist, or conflicting fiscal policies and tax laws; import and export regulations and trade sanctions; counter or even conflicting sanctions; embargoes, including but not limited to country-specific software certification requirements; and newly emerging cybersecurity and environmental, social, and governance (ESG) compliance and disclosure laws.
Any of these events could limit our ability to reach our targets, as they could have a material adverse effect on our business operations, our business in general, our financial position, profit, and cash flows. International Laws and Regulations: Laws, regulatory requirements and standards in Germany, the United States, and elsewhere continue to be very stringent.
Any of these events could have an adverse effect on our reputation, business, competitive or financial position, profit, and cash flows. International Laws and Regulations: Laws, regulatory requirements and standards in Germany, the United States, and elsewhere continue to be very stringent.
Governmental authorities could use considerable discretion in applying these statutes and any imposition of sanctions against us could be material. Any of these events could have a material adverse effect on our operations globally or in one or more countries or regions, which could have a material adverse effect on our business, financial position, profit, and cash flows.
Any of these events could have a material adverse effect on our operations globally or in one or more countries or regions, which could have a material adverse effect on our business, financial position, profit, and cash flows.
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. This commitment to recognized standards of business integrity is formalized in SAP’s CoEBC and supporting guidelines.
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 could involve significant costs or require changes in our products or business practices. Non-compliance could result in the imposition of penalties or cessation of orders due to alleged non-compliant activity.
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.
In addition, the German Federal Office for the Protection of the Constitution and security industry experts continue to warn of risks related to a globally growing number of cybersecurity attacks aimed at obtaining or violating company data including personal data. ​ 16 Table of Contents Any of these events could have a material adverse effect on our reputation, business, financial performance, competitive or financial position, profit, and cash flows.
In addition, the German Federal Office for the Protection of the Constitution and security industry experts continue to warn of risks related to a globally growing number of cybersecurity attacks aimed at obtaining or violating company data including personal data.
As a result, we might not be able to scale our business to compete successfully with other vendors, which could have an adverse effect on our reputation, business, financial position, profit, and cash flows. ​ 17 Table of Contents Cloud Operations: We may not be able to properly protect and safeguard our critical information and assets, business operations, cloud offerings and portfolio presentation, and related infrastructure against disruption or deficient performance.
As a result, we might not be able to scale our business to compete successfully with other vendors, which could have an adverse effect on our reputation, business, competitive or financial position, profit, and cash flows.
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.
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.
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. 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 business critical impact on our business.
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.
The severity of these cybersecurity threats is amplified due to the increasingly sophisticated and malicious global landscape in which we operate. 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 employed by threat actors targeting IT products and businesses.
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.
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 unknown bugs, errors and vulnerabilities in our software and systems.
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.
SAP is highly dependent on the availability, integrity, and reliability of our infrastructure and the software used in our cloud portfolio is inherently complex.
SAP is highly dependent on the availability, integrity, and reliability of our infrastructure, including infrastructure provided by third-party business partners, and the software used in our cloud portfolio is inherently complex. Customers using our cloud services rely on the security of our infrastructure to protect the availability of our services and the data that they store on our infrastructure.
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. SAP’s leadership position in the global market is founded on the long-term and sustainable trust of our stakeholders worldwide.
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 business, reputation, brand, competitive or financial position, share price, profit, and cash flows. SAP has encountered situations 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.
Any of these events could have a material adverse effect on our reputation, business, competitive or financial position, profit, and cash flows.
Additionally, failure to integrate or maintain SAP’s cybersecurity infrastructure and protocols with network systems obtained through acquisitions could result in loss of data confidentiality and integrity, and system availability. Technology and Products: Our technology and products may experience undetected defects, coding or configuration errors, may not integrate as expected, or may not meet customer expectations.
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.
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. Cloud4C, a third-party provider of data centers and related services supporting SAP’s cloud customers in certain jurisdictions, recently experienced a ransomware attack that temporarily disrupted Cloud4C’s operations.
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.
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Risk Factors Our operations and financial results are subject to various risks and uncertainties, including those described below, that could adversely affect our business, financial condition, results of operations, cash flows, and the trading price of our ADRs and ordinary shares.
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Item 3. Key Information — Exchange Rates ”).
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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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As a European company domiciled in Germany with securities listed in Germany and the United States, we are subject to European, German, U.S., and other governance-related regulatory requirements of the countries we operate in.
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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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Non-compliance could result in the imposition of penalties or cessation of orders due to alleged non-compliant activity. Governmental authorities could use considerable discretion in applying these statutes and any imposition of sanctions against us could be material.
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While Cloud4C identified no unauthorized access to customer data, for a brief period of time certain customers were unable to access data that was maintained in Cloud4C’s data centers. SAP initiated its incident response protocols and worked with Cloud4C to promptly investigate, contain and remediate the incident.
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Management’s view of the litigation might also change in the future.
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As part of those efforts, SAP issued credits to impacted customers pursuant to existing service-level agreements for which SAP received reimbursement from Cloud4C.
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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.
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While the overall fees and costs incurred by SAP to address the incident were not material, there can be no assurances that similar or more serious attacks impacting SAP or any third-party providers will not occur in future and that the consequences of such attacks would not result in a material adverse effect on SAP.
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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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Lack of compliance with security controls and governance to industry standards and regulations by us or third-party partners can impact adherence to external regulatory and customer requirements. Third parties could unknowingly introduce security threats and vulnerabilities without established security evaluation processes.
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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.
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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.
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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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Cloud Operations: We may not be able to properly protect and safeguard our critical information and assets, business operations, cloud offerings and portfolio presentation, and related infrastructure against cyberattacks, insufficient infrastructure, disruption, or deficient performance.
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Threat actors are focused on attacking third-party product and service providers, such as SAP, as a means of compromising our and our downstream customers’ systems and data.
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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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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.
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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.
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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.
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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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Technology and Products: Our technology and products may experience undetected defects, coding or configuration errors, may not integrate as expected, or may not meet customer expectations.
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To be successful, we are required to adapt our products and our go-to-market approach to a cloud-based delivery and consumption model so as to satisfy increasing customer demand and to ensure an appropriate level of adoption, customer satisfaction, and retention.
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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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Data sets may be overbroad, insufficient, or contain biased information. Content generated by AI systems may be offensive, illegal, or otherwise harmful.
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Ineffective or inadequate AI development or deployment practices by SAP or our partners could result in incidents that impair the acceptance of AI solutions or cause harm to individuals, customers, or society, or result in our products and services not working as intended.
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Human review of certain outputs may be required, which could introduce error or inefficiencies to the intended use of our AI-enabled offerings. As a result of these and other challenges associated with innovative technologies, our implementation of AI systems could subject us to competitive harm, regulatory action, legal liability, and brand or reputational harm.
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In particular, there is significant uncertainty surrounding the applications of intellectual property and privacy laws to AI technology.
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Intellectual property ownership and license rights, including copyright, surrounding AI technology have not been fully addressed by courts or other laws or regulations of the jurisdictions in which we operate, and our use of AI technology or integration of AI technology into our products and services may result in disputes with respect to ownership or intellectual property, or exposure to claims of copyright or other intellectual property misappropriation.
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In addition, our AI technology may involve the processing of personal and other sensitive data and may be subject to laws, policies, legal obligations, and contractual requirements related to privacy, data protection, and information security. Various privacy laws extend rights to consumers (such as the right to obtain consent or delete certain personal data) and regulate automated decision making.
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An alleged or actual failure to meet these obligations may lead to regulatory investigations and fines or penalties; may require us to change our business practices or retrain our algorithms; or may prevent or limit our use of AI technology.
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It is also possible that we are held liable for intellectual property, privacy, or other legal violations of third-party AI technology that we use, and that we may not have full recourse for any damages that we suffer (for example, our use of third-party AI technology may be subject to limitations of liability or provide no liability coverage).
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In addition, some AI scenarios present ethical issues or may have broad impacts on society, and there can be no assurance that our Global AI Ethics Policy or similar policies and procedures will be sufficient to address such issues.
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If we enable or offer AI solutions that have unintended consequences, unintended usage or customization by our customers and partners, or are controversial because of their impact on human rights, privacy, employment, or other social, economic, or political issues, we may experience reputational harm, adversely affecting our business and consolidated financial statements.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

46 edited+36 added−29 removed3 unchanged
Biggest changeOutlook for 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ Strategic Objective KPI 2022 Results 2023 Outlook ​ ​ ​ ​ ​ Growth Cloud revenue €12.56 billion €15.3 billion to €15.7 billion 2 ​ Cloud and software revenue €26.52 billion €28.2 billion to €28.7 billion 2 ​ Profitability Operating profit €8.03 billion 1 €8.8 billion to €9.1 billion 1,2 ​ ​ Free cash flow ​ €4.35 billion ​ Approximately €5.0 billion ​ Customer Loyalty Customer Net Promoter Score (2022 methodology) 3 ​ — ​ ​ ​ Customer Net Promoter Score (2023 methodology) 3 ​ 7 ​ 8 to 12 ​ Employee Engagement Employee Engagement Index 80% ​ 76% to 80% ​ Carbon Impact Net carbon emissions 85 kt ​ 0 kt ​ ​ 1 Non-IFRS 2 At constant currencies 3 The calculation methodology has been adjusted from 2023 to better reflect the business priorities of SAP.
Biggest changeOutlook 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.
We believe that this trend will continue in the near future but to a smaller extent as less seasonal 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.
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.
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. Such factors have resulted in 2022, 2021, and 2020 first quarter revenue being lower than revenue in the prior year’s fourth quarter.
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. Such factors have resulted in 2023, 2022, and 2021 first quarter revenue being lower than revenue in the prior year’s fourth quarter.
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 SuccessFactors, Inc., Newtown Square ​ USA Qualtrics, LLC, Provo ​ 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 ​ ​ 21 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, 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.
When customers pursue enterprise-wide transformational change, SAP offers SAP MaxAttention and SAP ActiveAttention plans for tailored, long-term strategic engagement. Our Customers Vision and Strategy Focusing on Customer Success We aim to maximize the value our customers derive from their investment in and relationship with SAP at every touchpoint in their experience with us over the engagement lifecycle.
When customers pursue enterprise-wide transformational change, SAP offers SAP MaxAttention and SAP ActiveAttention plans for tailored, long-term strategic engagement. 26 Table of Contents Our Customers Vision and Strategy Focusing on Customer Success We aim to maximize the value our customers derive from their investment in, and relationship with, SAP at every touchpoint in their experience with us over the engagement lifecycle.
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, 2022, the SAP Group comprised 288 companies.
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.
Item 4. Information About SAP – Description of Property .” ​ 20 Table of Contents The following table sets forth our most significant subsidiaries based on total revenues of SAP group in 2022. 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 .” 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.
Our Business Model Our business model, through which we implement our vision and strategy, can be summarized as follows: We create value by identifying the business needs of our customers, then by developing and delivering cloud solutions, software, services, and support addressing 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 cloud solutions, software, services, and support that address these needs.
For more information about the development of our more predictable revenue in 2022, see Item 5. Operating and Financial Review and Prospects – Operating Results (IFRS) . For more information about the expected development of our more predictable revenue, see
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 a list of our subsidiaries, associates, and other equity investments, see the Notes to the Consolidated Financial Statements, Note (G.9), Scope of Consolidation, Subsidiaries, and Other Equity Investments . Acquisitions We continue to focus on organic investments in technology and innovations that ensure sustainable growth of our solution portfolio.
For a list of our subsidiaries, associates, and other equity investments, see the Notes to the Consolidated Financial Statements, Note (G.9) . Material Acquisitions We continue to focus on organic investments in technology and innovations that should ensure sustainable growth of our product portfolio.
Our legal corporate name is SAP SE. SAP has been named a market share leader in the following areas worldwide: enterprise applications software, 1 enterprise resource management applications, 2 supply chain management applications, 3 procurement applications software, 4 travel and expense management software, 5 and enterprise resource planning software, 6 among others.
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.
This is apparent from a comparison of the market capitalization of SAP SE (based on all issued shares), which was €118.4 billion at the end of 2022 (2021: €153.4 billion), with the book value of our equity in the Consolidated Financial Statements, which was €42.8 billion (2021: €41.5 billion).
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).
As at December 31, 2022, SAP held a total of close to 13,000 (2021: more than 11,000) validated patents worldwide. Of these, more than 800 (2021: 793) were granted and validated in 2022.
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.
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 whole lifecycle and thus increase customer loyalty. We derive revenue from fees charged to our customers through subscriptions for use of our cloud solutions.
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.
This portfolio includes SAP Enterprise Support which comes with foundational tools and services, curated content, and mission-critical support. It can be enhanced with incremental success plans such as SAP Preferred Success and SAP Cloud Application Services, and success services through business journeys and consulting services to address specific objectives, timelines, and plans.
The Services and Support portfolio includes SAP Enterprise Support , which provides foundational tools and services, curated content, and mission-critical support. It can be enhanced with incremental success plans such as SAP Preferred Success and SAP Cloud Application Services as well as success services and consulting services to address specific objectives, timelines, and plans.
The Chief Marketing & 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 conducting the Company-Wide XM Program, including conducting the Customer Net Promoter Score (NPS) survey.
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.
Measured in FTEs, our R&D headcount was 30% of total headcount, remaining stable compared to 2021. 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.
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.
It also includes platform capabilities such as database (SAP HANA), data management, and lifecycle/solution management, as well as cloud ERP solutions, which our customers consume as part of their transformation to SAP S/4HANA.
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.
Our Product Strategy SAP’s suite of applications allows enterprises to manage their resources, spend, employees, and customer relationships. The SAP Business Technology Platform (SAP BTP) is the platform for SAP, our customers, and our ecosystem.
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.
In addition, we want our own business operations and practices to be intelligent, 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 pre-industrial levels.
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.
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.
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.
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 in Europe, Israel, the United Kingdom, and the United States.
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.
It includes standardizing experience initiatives and methodologies to help identify and improve experience gaps across SAP. ​ 25 Table of Contents 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.
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.
Spend Management SAP’s intelligent 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. They cover direct and indirect spend, travel and expense, and external workforce management.
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 strategic pillars of SAP’s product strategy and their corresponding updates for the year are as follows: ERP Cloud SAP S/4HANA 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 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.
The 2022 outlook numbers above reflect the updated outlook from October 2022. 1 Non-IFRS 2 At constant currencies Note: A reconciliation of non-IFRS results to IFRS equivalents is available in the Performance Management System section.
It was updated twice during the year: in April to reflect the divestiture of Qualtrics, and again in July 2023. The 2023 outlook numbers above reflect the updated outlook from July 2023. 1 Non-IFRS. 2 At constant currencies. Note: For a reconciliation of non-IFRS results to IFRS equivalents, 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. How We Measure and Manage Our Performance We use the Customer Net Promoter Score (NPS) as a feedback mechanism to measure customer loyalty.
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.
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 KPIs.
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.
Outlook and Results for 2022 ​ ​ ​ ​ ​ ​ ​ ​ Strategic Objective KPI 2022 Outlook* 2022 Results ​ ​ ​ ​ ​ ​ ​ ​ Cloud revenue 2 €11.55 billion to €11.85 billion ​ €11.68 billion Growth ​ Cloud and software revenue 2 €25.0 billion to €25.5 billion ​ €25.02 billion Profitability ​ Operating profit 1,2 €7.6 billion to €7.9 billion ​ €7.68 billion ​ ​ Free cash flow ​ Approx. €4.5 billion ​ €4.35 billion Customer Loyalty ​ Customer Net Promoter Score 3 to 8 ​ 3 Employee Engagement ​ Employee Engagement Index 80% to 84% ​ 80% Carbon Impact ​ Net carbon emissions ​ 90 kt to 95 kt ​ 85 kt ​ * The 2022 outlook was communicated in January 2022 and was updated in April, July, and October 2022.
Measuring Our Success We use the following financial and non-financial objectives to steer our company: - Growth - Profitability - Customer loyalty - Employee engagement - Carbon impact 28 Table of Contents Outlook and Results for 2023 ​ ​ ​ ​ ​ ​ ​ ​ Strategic Objective KPI 2023 Outlook* 2023 Results Growth ​ Cloud revenue 2 €14.0 billion to €14.2 billion ​ €14.06 billion ​ ​ Cloud and software revenue 2 €27.0 billion to €27.4 billion ​ €27.64 billion Profitability ​ Operating profit 1,2 €8.65 billion to €8.95 billion ​ €9.04 billion ​ ​ Free cash flow ​ Approx. €4.9 billion ​ €5.09 billion Customer Loyalty ​ Customer Net Promoter Score 8 to 12 ​ 9 Employee Engagement ​ Employee Engagement Index 76% to 80% ​ 80% Carbon Impact ​ Net carbon emissions ​ 0 kt ​ 0 kt ​ * The 2023 outlook was communicated in January 2023.
As at December 31, 2022, SAP was the second most valuable company in the DAX based on market capitalization and maintained industry leadership as one of two companies in the software industry in the S&P Global Corporate Sustainability Assessment for the sixteenth consecutive year.
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.
SAP is a member of Germany’s DAX and TecDAX as well as the Dow Jones EURO STOXX 50, the Dow Jones Sustainability Index World, and the Dow Jones Sustainability Index Europe.
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.
For more information about Qualtrics, see Note (G.8), Events after the Reporting Period . ​ 23 Table of Contents 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 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.
Industry Cloud SAP’s industry cloud solutions provide the opportunity for SAP and our partners to extend our core with modular solutions addressing industry-specific functions built on SAP BTP. ​ 24 Table of Contents Business Network The SAP Business Network solution portfolio aims to enable companies to collaborate with trading partners for greater supply chain visibility.
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.
Note: A reconciliation of non-IFRS results to IFRS equivalent is available in the Performance Management System section. ​ 28 Table of Contents Ambitions for 2025 SAP expects to update its mid-term ambition in the first half of 2023. ​ ​ ​ ​ ​ Strategic Objective ​ KPI ​ 2025 Ambition ​ ​ ​ Growth ​ Cloud revenue ​ More than €22 billion ​ Total revenue More than €36 billion Profitability Operating profit 1 More than €11.5 billion ​ ​ Free cash flow ​ Approximately €8 billion Customer Loyalty Customer Net Promoter Score Steady increase Employee Engagement Employee Engagement Index 84% to 86% Carbon Impact Net carbon emissions 0 kt (from 2023 onward; net zero along our value chain by 2030) ​ 1 Non-IFRS Note: A reconciliation of non-IFRS results to IFRS equivalents is available in the Performance Management System section.
Note: 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.
In 2022, our IFRS R&D ratio, reflecting R&D expenses as a portion of total operating expenses, increased 1.1 percentage points (pp) to 23.5% (2021: 22.4)%. Our non-IFRS R&D ratio increased 0.4pp to 24.2% year over year (2021: 23.8)%. At the end of 2022, our total full-time equivalent (FTE) headcount in development was 34,122 (2021: 32,244).
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%).
SAP Ariba combines industry-leading cloud-based applications to help companies discover and collaborate with a global network of partners. Customer Experience The SAP Customer Experience portfolio aims to deliver a personalized view across customers and business partners, connecting the front- and back office with solutions spanning from point-of-sale to manufacturing, to logistics, customer experience, and returns management.
Customer Experience SAP Customer Experience solutions aim to deliver a personalized view across customers and business partners, connecting the front- and back office with solutions spanning from point-of-sale to manufacturing, logistics, customer experience, and returns management. 25 Table of Contents SAP Business Technology Platform SAP Business Technology Platform (SAP BTP) is our business-centric, and open platform consisting of market-leading technologies infused with AI that enables SAP development, customers, and the partner ecosystem to unlock innovation across the enterprise.
Customers can use new offers like skills ontology, personal growth portfolio for employees, and dynamic teams to work across traditional organizational structures. The portfolio includes core HR and payroll, talent management, employee experience management, and people and workforce analytics.
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.
This offering aims to give companies a better understanding of their end-to-end business processes by correlating experience data from Qualtrics user surveys with operational data from underlying IT systems. Sustainability SAP offers sustainability solutions and services that can help customers drive sustainable practices not only inside their organization, but across the entire value chain.
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.
Together with our customers and partners, we are engaged in initiatives across the UN SDGs. Our Vision SAP's vision is to reinvent how the world runs as a network of intelligent, 7 sustainable enterprises.
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 Cloud for Sustainable Enterprises brings together a comprehensive solution portfolio for businesses that aims to enable businesses to manage sustainability holistically.
SAP Cloud for Sustainable Enterprises is a flexible solution portfolio that aims to enable businesses to manage sustainability holistically. The portfolio includes the following offerings: SAP Sustainability Control Tower for holistic steering and reporting across ESG metrics and SAP Sustainability Data Exchange for sharing standardized sustainability data across supply chains.
The SAP Group has a global presence and employs more than 110,000 people as at December 31, 2022. 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 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.
The XM Program ensures that the feedback received is heard by the responsible organizations within SAP so they can act to continually improve the customer experience. Beginning in 2023, we will adjust the calculation of NPS to better reflect the business priorities of the Company. For comparison purposes, the NPS for 2022 would be 7 according to the new calculation.
The increase was driven by feedback regarding our comprehensive and robust SAP solutions, established value to customers’ business, and relationships with account teams. The Company-Wide XM Program ensures that the feedback received is heard by the responsible organizations within SAP so they can act to continually improve the customer experience.
SAP Business Technology Platform SAP Business Technology Platform (SAP BTP) is a unified, business-centric, and open platform that helps enable customers and partners to build, integrate, and extend applications while gaining insights from business data in a cloud-native way.
SAP BTP enables customers and partners to build, integrate, and automate applications while leveraging insights from business data on a trusted enterprise-grade environment.
Our Purpose Our purpose at SAP is to “help the world run better and improve people’s lives.” We strive to achieve this as both an enabler and an exemplar of sustainable business. Our products and services aim to help our customers both meet the challenges and take advantage of the opportunities presented by today’s rapidly changing world.
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.
For 2023, we expect an NPS of 8 to 12, representing an increase of 1 to 5 points against the new baseline. Further, we aim to see continuous improvements and increase the score steadily in the medium term. Customer NPS is a KPI in Executive Board remuneration as part of the short-term incentive component.
For 2024, we expect a Customer NPS of 9 to 13. Further, we aim to see continuous improvements and to increase the score steadily in the medium term. Related Risks for SAP For related financial risks, see Sales and Services in the Risk Factors section. 14 Recalculated score according to 2023 methodology.
This means that the market capitalization of our equity is more than two times higher than the book value. The difference is mainly due to certain internally generated intangible resources that the applicable accounting standards do not allow to be recorded (at all or at fair value) in the Consolidated Financial Statements.
This means that the market capitalization of our equity is more than three times higher than the book value.
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SAP has announced the intention to become carbon neutral in our own operations by the end of 2023 – two years earlier than previously stated. Further, in January 2022, SAP announced the commitment to achieve net-zero along our value chain in 2030. We also support the United Nations Sustainable Development Goals (UN SDGs).
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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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In our pursuit of this vision, we focus on three areas: Helping Our Customers Become Intelligent and Sustainable Enterprises Intelligent enterprises use data with embedded artificial intelligence (AI) and experience management to remove friction across business processes and drive innovation, enabling people to work more flexibly.
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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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Bringing Enterprises Together into a Global Business Network Businesses are playing an even greater role in their communities – forming a network that expands far beyond the walls of any one company. We deliver innovation and intelligent technologies across procurement, logistics, asset management, and industry-specific offerings to enable a global business network spanning industries and value chains.
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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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This becomes even more important when companies face supply chain disruptions, as our software aims to enable stakeholders in the network to react to disruption in real time. 1 IDC, IDC Semiannual Software Tracker: 2022H1 Final Historical, October 2022 2 IDC, Worldwide Enterprise Resource Management Software Market Shares, 2021: Digital-First World Propelling the Market, Doc #US48564022, July. 2022 3 IDC, Worldwide Supply Chain Management Applications Market Shares, 2021: Growth Resumed, Doc ##US49846822, Dec. 2022 4 IDC, Worldwide Procurement Applications Software Market Shares, 2021: Consistent Sector Growth as Dominant Players Maintain Share, Doc #US49273722, June. 2022 5 IDC, Worldwide Travel and Expense Management Software Market Shares, 2021: Data Management Forms New Foundation for T&E, Doc #US48515722, August 2022 6 IDC, Worldwide Enterprise Planning, Budgeting, and Forecasting Applications 2022 Vendor Assessment, Doc #US48985622, December 2022 7 An “intelligent enterprise” is an event-driven, real-time business powered by technology that includes machine learning, robotic process automation, Internet of Things, and analytics capabilities to help scale innovation. ​ ​ 22 Table of Contents Enabling a Sustainable World The traditional focus of businesses on productivity and profitability is expanding to include a new measurement for business success – how operations impact the environment, or the “green line.” With the overview and transparency of business processes and ability to connect value chains end to end provided by SAP software, we help companies to measure and improve sustainability across entire networks, allowing them to effectively pursue key milestones such as zero emissions, zero waste, and zero inequality.
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By connecting core processes – from finance to supply chains and human resources to customer relations – we support efficient growth throughout businesses.
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Our strategy is firmly rooted in our goal to be an innovative and trusted partner for our ecosystem, supporting them on their journey to reinvent how their businesses run. With this strategy, we aim to achieve our overarching objectives of creating resilient, profitable, and sustainable business outcomes for our customers.
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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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Additionally, we may make targeted acquisitions to complement our solution offerings and improve coverage in key strategic markets. In March 2022, SAP acquired a majority stake of Taulia, a leading provider of working capital management solutions. We expect Taulia to further expand SAP’s business network and to strengthen our cloud solution portfolio for the CFO office.
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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.
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Taulia’s solutions are integrated into SAP’s portfolio as well as continuing to be available as standalone solutions. Taulia operates as a separate business segment with its own brand within the SAP Group. For more information about Taulia, see Note (D.1), Business Combinations and Divestitures .
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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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Divestitures Litmos On August 17, 2022, SAP and Francisco Partners (FP) announced that FP had signed a definitive agreement with SAP America, Inc. under which FP would acquire SAP Litmos from SAP. The transaction closed on December 1, 2022, following satisfaction of applicable regulatory and other approvals. For more information about Litmos, see Note (D.1), Business Combinations and Divestitures .
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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.
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SAP to Explore a Sale of its Stake in Qualtrics On January 26, 2023, SAP announced that in line with the strategic initiative to streamline its portfolio, SAP has decided to explore a sale of its stake in Qualtrics.
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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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In the event of a successful transaction, SAP intends to remain a go-to-market and technology partner, servicing its joint customers and contributing to its growth and category leadership. A final decision on any transaction, its conditions and timing is subject to market conditions, agreement on acceptable terms, regulatory approvals and the approval of the SAP SE Supervisory Board.
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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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At our flagship conference SAP Sapphire in May 2022, SAP announced the launch of SAP Digital Manufacturing Cloud , a solution designed to help customers optimize manufacturing performance by integrating production execution, visibility, and analysis.
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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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In addition, SAP and Apple have expanded their partnership and released a new suite of iOS apps designed to streamline the digital supply chain and equip workers with intuitive tools. Human Experience Management SAP SuccessFactors solutions for human resources aim to empower organizations to create an agile and future-ready workforce in a rapidly changing workplace.
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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.
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SAP BTP aims to bring together capabilities across application development, automation, data and analytics (including planning), integration, and artificial intelligence (AI) into one platform.
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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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In 2022, we launched the SAP Build portfolio, bringing together SAP Build Apps (formerly SAP AppGyver) ; SAP Build Process Automation (formerly SAP Process Automation ); and SAP Build Work Zone (formerly SAP Work Zone ) into a unified development environment as part of SAP BTP.
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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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The SAP Build portfolio aims to enable business users to integrate systems; intelligently monitor, analyze, and automate processes; and build applications using SAP BTP and business application data from SAP – all without moving data to an external system.
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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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SAP Signavio Our business process transformation solutions help our customers scan their operations to understand and improve their business process landscape. We support analysis of current processes, benchmarking against best practices, and reconfiguring current processes towards future processes. The portfolio includes SAP Signavio solutions as well as SAP Process Automation . SAP also announced the general availability of “journey-to-process” analytics.
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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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Product innovations include the following solutions: SAP Sustainability Control Tower for holistic steering and reporting across ESG metrics, SAP Product Footprint Management for emissions accounting and management, and SAP Responsible Design and Production to reduce waste and accelerate circular business. SAP also plans to further complement the sustainability portfolio with solutions that support environmental, social, and governmental topics.
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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.

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Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeLEAF coalition members commit to purchasing emission reduction credits from reforestation and avoided deforestation, which are validated and verified against the ART’s TREES standard. ​ ​ Related Risks for SAP In 2022, we performed a climate risk and vulnerability assessment to identify physical climate risks (acute and chronic) that are material to the SAP-relevant activity ‘data processing and hosting’, as follows: – Risk screening for all our own and co-location data centers based on a multitude of climate hazards (acute and chronic), 35 using global climate models (representative concentration paths (RCPs) 2.6, 4.5, and 8.5). – Deep-dive exposure analysis for a selected range of climate hazards based on 2°C and 4°C scenarios: heatwaves and extreme precipitation (time horizon: 2021–2050) 36 as well as river flooding and water stress (time horizon: 2030 and 2050). 37 The hazards were selected based on the risk screening outcome and impact on data centers combined with expert discussions. – Vulnerability analysis of our own data centers with high exposures helped us identify the impact and risk of a hazard by considering current and past hazard experiences and implemented mitigation actions. ‘Climate change and air quality’ is a risk factor that is assessed as part of SAP’s Corporate Financial Risk Management System.
Biggest changeThis diligent procurement approach helps SAP mitigate the risk of procuring non-genuine carbon emission reductions while reinforcing our own quality expectations (for more information, see the Non-Financial Notes: Environmental Performance section). ● Offset volume in 2023: 101 kt ​ In 2023, we invested for the first time as a pilot in Sustainable Aviation Fuel (SAF), to reduce our business-flight-related emissions compared to emissions generated by using conventional (fossil) aviation fuel. 58 Related Risks for SAP In 2022, we performed a climate risk and vulnerability assessment to identify physical climate risks (acute and chronic) that are material to the SAP-relevant activity ‘data processing and hosting,’ as follows: – Risk screening for all our own and co-location data centers based on a multitude of climate hazards (acute and chronic), 59 using global climate models (representative concentration paths (RCPs) 2.6, 4.5, and 8.5). – Deep-dive exposure analysis for a selected range of climate hazards based on 2°C and 4°C scenarios: heatwaves and extreme precipitation (time horizon: 2021–2050) 60 as well as river flooding and water stress (time horizon: 2030 and 2050). 61 The hazards were selected based on the risk screening outcome and impact on data centers combined with expert discussions. – Vulnerability analysis of our own data centers with high exposures helped us identify the impact and risk of a hazard by considering current and past hazard experiences and implemented mitigation actions. – In 2023, we rolled out a vulnerability and adaptation questionnaire to our own data centers to ensure (on - site) measures are planned and/or in place to address the identified applicable main climate change risk (s). ‘Climate change and air quality’ is a risk factor that is assessed as part of SAP’s Corporate Financial Risk Management System.
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 the SAP CFO. Within the Executive Board, the SAP CFO is responsible for compliance and enforcement of data protection and privacy.
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.
Aligned with the overall SAP corporate strategy and vision, it details the management intent, expectations, and 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.
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.
Item 5. Operating and Financial Review and Prospects – Expected Developments . Security, 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.
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.
These requirements apply to all SAP employees, contractors, consultants, as well as 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.
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.
To ensure this, we work with several external stakeholder groups including SAP user groups for the Americas and for 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 within SAP and our affiliated businesses.
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.
The training is conducted every two years, with the latest rolled out in 2021. 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.
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.
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 different LoBs at SAP may have supporting policies, standards, procedures, and practices.
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.
Description of Property Our principal office is located in Walldorf, Germany, where we own and occupy approximately 455,000 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 185,000 square meters.
SAP respects the rights of the data subjects to obtain information as to whether or not 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.
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.
Our new 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: Creating a positive work environment where colleagues can thrive and engage to their fullest potential in driving SAP’s purpose.
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 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 for their adoption. It is also designed to safeguard the processing of personal data.
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.
Where new data protection laws evolve, the DPPC network also helps the Data Protection and Privacy (DPP) team acting 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.
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.
Alternative commuting ​ To generate a shift in alternative commuting habits and foster inter-/multimodal mobility, we continue to offer various programs, such as: ● Company bike programs: Employees can lease bicycles with the option of purchasing them after contract end.
Alternative commuting ​ To generate a shift in commuting habits and foster inter-/multimodal mobility, we continue to offer various programs, such as: ● Company bicycle leasing programs: Employees can lease bicycles with the option of purchasing them after contract end.
To that end, we: - Engage in internal and external audits across SAP globally - Monitor and support our cloud and IT units with over 2,800 controls that are audited and tested for design and operating 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 operating effectiveness of internal control systems implemented within cloud delivery units - Let 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, and ISO 22301, in addition to BS 10012 Data Protection To help ensure necessary knowledge about data protection, global data protection and privacy training is mandatory for SAP employees.
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.
Examples of acute hazards: wildfires, water stress, droughts, floods, avalanches, and landslides. 36 Usage of Intergovernmental Panel on Climate Change (IPCC) RCP 2.6 and RCP 8.5. 37 Usage of IPCC RCP 4.5 and RCP 8.5. ​ 46 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.
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.
We also track the quality of our data protection compliance level based on the annual recertification of our DPMS by the British Standards Institution (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 year-end 2025.
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.
For further information regarding the principal markets in which SAP conducts business, including a breakdown of total revenues by category of activity and geographic market for each of the last three years, see “ Item 5. Operating and Financial Review and Prospects — Operating Results (IFRS) ” of this report. ​ 48 Table of Contents ITEM 4A.
For further information regarding the principal markets in which SAP conducts business, including a breakdown of total revenues by category of activity and geographic market for each of the last three years, see “ Item 5. Operating and Financial Review and Prospects — Operating Results (IFRS) ” of this report.
No financial material risks were identified through our risk framework as described in the Risk Factors section. ​ 39 Table of Contents 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 decay and biodiversity loss.
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.
The DPO owns 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 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.
We maintain a record of processing activities (“procedure enrollment tool”), in which procedures that process personal data must be documented. The record entries contain general information about the procedure according to defined criteria necessary to meet proper documentation. The record entries are reportable and regularly reviewed.
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.
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. No requests from the Supervisory Board in 2022. SAP has established a global network of data protection and privacy coordinators (DPPCs) across all SAP Group entities that process personal data.
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.
It includes three categories: 1) Managers managing teams: Refers to managing teams of at least one employee or vacant positions; 2) Managers managing managers: Refers to managing managers who manage teams; and 3) Executive Board members. For 2023, we will keep our ambition to increase the rate of women in management to 30%.
It includes three categories: 1) Managers managing teams: Refers to managing teams of at least one employee or vacant position; 2) Managers managing managers: Refers to managing managers who manage teams; and 3) Executive Board members. For 2023, we kept our ambition to increase the rate of women in management to 30%.
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.
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.
Our significant construction activities are described below, under the heading “Principal Investments and Divestitures Currently in Progress.” Investments Principal Investments Currently in Progress In 2022, 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 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.
Supported by the DPPC network, the DPP team regularly engages with SAP’s government relations team to represent SAP’s interests in the legislative process. In this regard, SAP participates in external working groups to help align industry-specific interests with respective governments. ​ 30 Table of Contents SAP has implemented a data protection management system (DPMS) for our organization.
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.
Our SAP Global Security (SGS) organization supports this journey with a goal of reducing risk and promoting regulatory compliance, and by aligning people, procedures, and technology to protect business processes and data. The organization embraces and encourages a security-minded culture that embeds security 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 and deployment processes and helps secure digital transformation.
To protect our organization’s data and assets and support high-quality risk management and reporting, SGS regularly reviews and adapts our security policies, standards, and frameworks. ​ 29 Table of Contents Data Protection With our product and services portfolio, SAP aims to protect the rights of individuals involved and meet relevant local requirements when processing personal data.
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.
This disclosure mechanism provides customers with authoritative, public information about SAP software vulnerabilities from SAP that can be integrated with their existing risk management processes and tools. SAP strives to reduce risk by continuously improving our processes for detecting and remediating attacks and vulnerabilities.
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.
SGS supports key stakeholders in our lines of business (LoBs), IT, and the presales organization in securing solutions, and drives operational excellence for security 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.
SAP Global Security Cloud solutions and services are increasingly important to many companies' daily operations. Organizations today are facing many risk factors and disruptions such as the COVID-19 pandemic , war, political unrest, severe weather, cyberattacks, and supply chain disruption, making digital solutions critical to business resilience.
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.
As a result, digital transformation is accelerating and cybersecurity is now even more crucial to IT security professionals and business leaders, particularly in those enterprises that have moved their core processes to the cloud. The SAP strategy is focused on helping customers transform into intelligent, sustainable enterprises.
As a result, digital transformation is accelerating and cybersecurity is now even more crucial to IT security professionals, and to leaders in business and government, particularly in those organizations that have moved their core processes to the cloud. The SAP strategy is focused on helping our customers in their digital transformation.
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 protection and security requirements for the processing of personal data, SAP has implemented a subprocessor verification process.
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 increase in 2021 was primarily due to the Clarabridge acquisition (by Qualtrics) and the Signavio 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.
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.
For this, we use two strategic levers: ● Investing in high-quality, EKOenergy-certified EACs to foster renewable energy generation ● Producing renewable electricity in selective SAP locations worldwide through solar panels (such as Palo Alto, CA, in the United States, and Bangalore, India).
For this, we use two strategic levers: ● We invest in high-quality, EKOenergy-certified EACs 53 to foster renewable energy generation. ● We produce renewable electricity in selected SAP locations worldwide through solar panels (such as in Palo Alto, CA, in the United States, Bangalore, India, and Mougins, France).
The SAP Security Governance Model is designed to ensure executive engagement and facilitates shared responsibility in quarterly SAP Security Advisory Board and bi-monthly Security Council meetings, as well as in biweekly updates to the Executive Board. Our commitment to customers is to be open and transparent about security vulnerabilities.
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.
This DPPC network consists of regional and local DPPCs and is aimed to ensure data protection and privacy compliance on a local level. The DPPC network increases awareness by conducting local training and monitoring the legal landscape.
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.
The office and datacenter space we occupy includes approximately 365,000 square meters in the EMEA region, excluding Germany, approximately 405,000 square meters in North and Latin America, and approximately 375,000 square meters in the APJ Region.
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.
ISO 14001 ​ ● SAP’s environmental management system (EMS) is implemented in over 50 sites in 29 countries worldwide and certified by the renowned ISO 14001:2015 standard. In 2022, we successfully maintained this certification. ● Target: Increase EMS scope to 100% of SAP’s major company-owned sites by 2025 (2022: 85%).
ISO 14001 ​ ● SAP’s environmental management system (EMS) is implemented in over 45 sites in 26 countries worldwide and certified by the internationally recognized ISO 14001:2015 standard. In 2023, we successfully maintained this certification. ● Target: Increase EMS scope to 100% of SAP’s major company-owned sites by 2025 (2023: 86%).
Guidelines and Policies SAP is committed to ensuring the fair and equal treatment of all employees in a sustainable manner. For that reason, we established comprehensive policies that guide us in our daily business. Examples are our SAP Global Antidiscrimination Statement and SAP Health, Safety & Well-Being Commitment Statement.
Guidelines and Policies SAP is committed to ensuring the fair and equal treatment of all employees in a sustainable manner. For that reason, we established comprehensive policies that guide us in our daily business.
A newly formed operating segment (‘sustainability’) is now responsible for driving SAP’s holistic, cross-company sustainability agenda. The Office of the Chief Sustainability Officer (oCSO) is part of this new unit and continues to shape, among others, SAP's response to climate change in close cooperation with other departments.
The organizational unit and operating segment responsible for sustainability drives SAP’s holistic, cross-company sustainability agenda. The Office of the Chief Sustainability Officer (oCSO) is part of this unit and continues to shape SAP's response to climate change in close cooperation with other departments.
In approximately 80 countries worldwide, we occupy roughly 1,785,000 square meters. The space in most locations other than our principal office in Germany is leased. We also own certain real properties in Newtown Square, Palo Alto, Provo 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 1,595,000 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.
To address this, we aim to help our customers, hardware providers, and others to run more energy-efficient operations. ● By powering all data centers with 100% renewable electricity, 28 we offer our customers carbon-neutral cloud software solutions and help them reduce their overall carbon emissions (upstream Scope 3). ● In 2021, we started to develop a carbon footprint sizing approach with the aim of enabling our customers to gain transparency on the carbon impact of their SAP applications that run in SAP’s internal and external data centers, answering the question of how much our customers can reduce their environmental footprint by running SAP solutions on SAP’s cloud infrastructure compared to a cloud that is not powered by 100% renewable electricity. ● We collaborate with customers to optimize their on-premise landscapes so that they consume less energy (for example, we decommission legacy systems, archive unused data, consolidate business applications, and virtualize their system landscapes).
To address this, we aim to help our customers, hardware providers, and others to run more energy-efficient operations. ● By powering all data centers with 100% renewable electricity , 50 we offer our customers carbon-neutral 51 cloud software solutions and help them reduce their overall carbon emissions (upstream scope 3). ● We started to develop a carbon footprint sizing approach with the aim of enabling our customers to gain transparency on the carbon impact of their SAP applications that run in SAP’s internal and external data centers, answering the question of how much our customers can reduce their environmental footprint while running SAP solutions on SAP’s self-operated or on SAP sourced infrastructure. ● We collaborate with customers to optimize their on-premise landscapes so that they consume less energy (for example, we decommission legacy systems, archive unused data, consolidate business applications, and virtualize their system landscapes). ​ ​ Supply Chain Environmentally conscious procurement ● Multi-phased supply chain engagement program: We partner with (top) suppliers to procure low carbon and energy-efficient products and services to reduce their environmental footprint throughout the supply chain. ● We consider environmental requirements in procurement processes and decisions.
For more information about our offices in Russia and Belarus see Note (B.6). For a disclosure on our non-current assets by geographic region see Note (D.7) to our Consolidated Financial Statements. Also see, “ Item 6.
For a disclosure on our non-current assets by geographic region see Note (D.7) to our Consolidated Financial Statements. Also see, “ Item 6.
No financial material risks were identified through our risk framework as described in the Risk Factors section. 32 To finance our investments in high-quality carbon offset projects (for example, certified by the Gold Standard) and EACs, we leverage the collected internal air travel fees charged on business flights. 33 Investments in sustainable projects and the corresponding carbon offsets represent a unit of reduced, avoided, or removed greenhouse gas emissions. 34 Exchange rate date: December 31, 2022. 35 Examples of chronic hazards: changing temperature, heat stress, changing wind patterns, rise in sea level, and soil erosion.
No material financial risks were identified through our risk framework as described in the Risk Factors section. 56 Investments in projects and the corresponding carbon offsets represent a unit of reduced, avoided, or removed GHG emissions. 57 To finance our investments in high-quality carbon offset projects (for example, certified by the Gold Standard) and EACs, we leverage the collected internal air travel fees charged on business flights. 58 We have not (yet) counted the emission reductions received towards our carbon targets. 59 Examples of chronic hazards: changing temperature, heat stress, changing wind patterns, rise in sea level, and soil erosion.
Among other things, this new unit is responsible for: – Defining the Environmental Policy and determining a global environmental portfolio to help steer SAP’s impact – Setting reduction and impact targets and embedding sustainability-related initiatives across SAP – Measuring and monitoring carbon emissions on a quarterly basis – Assessing and managing climate-related risks through a quarterly risk review – Managing nature-based investment decisions – Rolling in business requirements to our development units to develop the right solutions Sustainability is a company-wide effort and initiatives are also driven outside the new unit.
Among other things, the oCSO is responsible for: – Defining the Environmental Policy and determining a global environmental project portfolio to help steer SAP’s impact – Setting reduction and impact targets and embedding sustainability-related initiatives across SAP (for example, running the cross-board Environmental Management System and net-zero program) – Evaluating our carbon inventory and monitoring carbon emissions on a quarterly basis – Assessing and managing climate-related risks through a quarterly risk review – Managing nature-based investment decisions – Serving as advisor to our development units to develop solutions Sustainability is a company-wide effort, and initiatives are also driven outside this dedicated unit.
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 training students were invited to take part in the 2022 #Unfiltered survey cycle. ​ 32 Table of Contents Our Key People-Related KPIs at a Glance 11 Below is an overview of how we put the three themes of our people strategy and KPIs into practice.
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.
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 the best talent. Our People & Operations Strategy connects with our product and go-to-market strategies to utilize the combined power of our people, processes, and technology.
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.
How We Measure and Manage Our Performance The impact of our people strategy is measured by seven KPIs (see table “Our Key People-Related KPIs at a Glance”).
Examples include our SAP Global Antidiscrimination Statement and SAP Health & Safety Commitment Statement . 16,17 How We Measure and Manage Our Performance The impact of our People Strategy is measured by seven KPIs (see table “Our Key People-Related KPIs at a Glance”).
They can be summarized across three themes, powered by operational excellence and showcasing SAP solutions for human experience management (HXM): – Building Skills for the Future by attracting the best and most diverse talent and continuously up-/reskilling our people – Driving SAP’s Winning Culture by fostering a culture that enables and rewards impact and business outcomes – Changing the Way We Lead by driving for accountability and empowerment, in a healthy, inclusive, and diverse environment Due Diligence Governance Since January 1, 2021, Sabine Bendiek has served as Chief People & Operating Officer and Labor Relations Director.
It can be summarized across three strategic priorities powered by operational excellence, and showcasing SAP SuccessFactors solutions for human experience management (HXM): – Build SAP’s Skills for the Future by attracting the best and most diverse talent and continuously up-/reskilling our people – Drive SAP’s Winning and Inclusive Culture by fostering a culture that enables and rewards impact and business outcomes and nurtures inclusion and belonging – Change the Way We Lead – Do What’s Right by driving accountability and empowerment in an agile, healthy, and inclusive environment Due Diligence Governance Sabine Bendiek served as Chief People and Operating Officer and Labor Relations Director from January 1, 2021, until her departure from the Company on December 31, 2023.
For more information about planned investment expenditures, see the Investment Goals section. 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 €1,129 million in 2022 (2021: €1,067 million; 2020: €1,006 million).
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).
The DPMS is set according 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.
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.
Five out of the seven KPIs are based on the results of our engagement survey program #Unfiltered. 10 With #Unfiltered, we strengthen our commitment to listen regularly to our employees and act together on their feedback. In 2022, we defined excitement for the future of SAP and health and well-being as focus areas.
Five out of the seven KPIs are based on the results of our engagement survey program #Unfiltered . 18 With #Unfiltered, we strengthen our commitment to listen regularly to our employees and act together on their feedback. Our focus in 2023 was on continuing our efforts to further strengthen the excitement about the future of SAP.
In other words, we seek to measure how many employees choose to stay with SAP. As opposed to keeping a low turnover rate, we aim to keep our retention rate high. The number of voluntarily departed employees excludes the voluntary part of restructuring-related departures for more transparency and precise headcount management purposes.
As opposed to keeping a low turnover rate, we aim to keep our retention rate high. The number of employees who left voluntarily excludes those who left voluntarily as part of restructuring-related departures, for more transparency and precise headcount management purposes.
The People & Operations organization set up remains unchanged from 2021 to best support our People Strategy, including the following functional areas: Future of Work (including Global Health & Well-Being), Global Diversity & Inclusion, SAP Learning, Talent Attraction, Total Rewards, and our Global People Success Services team combining the HR Business Partner organization with Global HR Service Delivery.
The following functional areas help implement our People Strategy: Future of Work (including Global Health, Safety & Well-Being), Global Diversity & Inclusion, SAP Learning, Talent Attraction, Total Rewards, and our Global People Success Services team, which includes the HR Business Partner organization, People Experience, and Global HR Service Delivery.
To ensure we reach our carbon neutrality commitment by 2023, SAP will continue and expand existing initiatives and programs to drive efficiency and innovation, following our strategic approach to first avoid, secondly reduce, and thirdly – if no other option is feasible – compensate our residual emissions by investing in high-quality offset projects certified by international standards.
To achieve our target, we continued and expanded existing initiatives and programs to drive efficiency and innovation, following our strategic approach to first avoid, secondly reduce, and thirdly – if no other option is feasible – compensate for residual emissions by investing in high-quality offset projects certified by international standards (for more information, see the section Investing in Carbon Offsets to Compensate for Our Remaining Emissions ).
In addition, it helps us comply with internationally recognized sustainability standards as well as stakeholder expectations, primarily those of customers, investors, and employees. ​ 40 Table of Contents How We Measure and Manage Our Performance Our Targets Target Base Year Target Year Target Description and Details Carbon neutrality in our own operations by 2023 ​ 2017: 327 kilotons (kt) net carbon emissions 24 ​ 2023: 0 net carbon emissions ​ ● Net carbon emissions = Gross carbon emissions (Scope 1, 2, and selected Scope 3) minus purchased renewable energy certificates (EACs), self-generated renewable energy, and carbon offsets. ● To track progress on our target, we derived annual targets for our internal operational steering.
How We Measure and Manage Our Performance Our Carbon Reduction Targets Target Base Year Target Year Target Description, Status, and Next Steps Carbon neutrality in our own operations by 2023 ​ 2017: 327 kilotons (kt) net carbon emissions 39 ​ 2023: 0 kilotons (kt) net carbon emissions ​ ● Net carbon emissions = gross carbon emissions (scope 1, 2, and selected scope 3) 40 minus purchased renewable energy certificates (EACs), self-generated renewable energy, and carbon offsets. ● To track progress on our target, we derived annual targets for our internal operational steering.
Such programs have already been established in Germany, Belgium, and Luxembourg. ● After successful pilot phases, we will roll out the flexible mobility budget in spring 2023 as a regular mobility alternative in Germany.
Such programs have already been established in Belgium, Germany, and Luxembourg. ● Successful role out of a flexible mobility budget in spring 2023 as a regular mobility alternative in Germany (2023: about 1,950 participants).
Principal investments in 2022 for property, plant, and equipment increased compared to 2021. Those investments also increased from 2020 to 2021. In 2022 and 2021 the investments relate primarily to replacement and purchase of information technology equipment and the construction and leasing of buildings and data centers.
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) .
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 over the year.
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 2022, SAP experienced three significant incidents in processing personal data – on our own behalf – that were subject to GDPR only and were reported to the supervisory authorities. ​ 31 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 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.
Global car fleet: Transition to electric or zero-emission vehicles ​ From 2025 onwards, all new vehicles ordered as company cars are planned to be emission-free. 31 SAP also promotes various incentives to accelerate this change, such as: ● We power all SAP-owned charging stations at SAP locations with 100% renewable electricity. ● In Germany and the Netherlands, we offer employees a subsidy to install a charging point at home, and reimburse the employees for the electricity consumed.
SAP also promotes various incentives to accelerate this change, for example: ● We power all SAP-owned charging stations at SAP locations with 100% renewable electricity. ● For larger vehicle fleets such as in Germany, the Netherlands, and others, we offer employees a subsidy to install a charging point at home, and reimburse them for the electricity consumed.
These pillars comprise the global data protection and privacy policy; mandatory global data protection and privacy training for employees; our global data protection and privacy coordinator network; and the global data protection management system – and all aiming to ensure that we comply with applicable data protection laws.
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.
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 2021. How We Measure and Manage Our Performance Security Compliance processes at SAP adhere to trust-service criteria established by the American Institute of Certified Public Accountants (AICPA).
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.
For further details related to property, plant, and equipment, please see Note (D.4) Our investments for intangible assets such as acquired technologies and customer relationships amounted to €472 million in 2022 compared to €621 million in 2021 (2020: €314 million). Our investments allocated to goodwill decreased to €589 million in 2022 from €1,736 million in 2021 (2020: €395 million).
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).
Business Health Culture Index (BHCI): Indicates the extent to which SAP successfully offers employees a working environment that promotes health supporting their long-term employability and their active engagement in reaching our corporate goals. The index covers questions concerning how employees rate their personal well-being and the working conditions at SAP, including our leadership culture.
Leadership Trust Net Promoter Score: for more information, see the Performance Management System section. Business Health Culture Index (BHCI): Indicates the extent to which SAP successfully offers employees a working environment that promotes health, and supports their long-term employability and their active engagement in reaching our corporate goals.
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. Due Diligence Governance The Executive Board sponsorship for sustainability and climate action moved from SAP’s CFO to the CEO in June 2022.
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.
Participants receive a monthly fixed mobility budget to use any mode of transport to commute to work or in their leisure time (bike, e-scooter, rental car, train, bus, and so on). Fostering biodiversity and nature-based solutions to climate change ​ ● Since 2012, SAP has helped to plant over 14.1 million trees to restore ecosystems and foster sustainable development.
Participants receive a fixed monthly mobility budget to use any mode of transport to commute to work or in their leisure time (bicycle, e-scooter, rental car, train, bus, and so on).
Related Risks for SAP ‘Human rights and employee matters’ is a risk factor that is assessed as part of SAP’s corporate financial risk management system.
In addition, we are currently leveraging the SAP Build Process Automation solution to further automate processes such as bonus plans and variable pay. Related Risks for SAP “Human rights and employee matters” is a risk factor that is assessed as part of SAP’s corporate financial risk management system.
Due Diligence for Security Topics Governance SGS is led by a chief security officer who reports directly to the SAP CEO. SGS divisions are responsible for areas such as product and application security, cyberdefense, operational security risk management, security compliance, executive protection, physical security, as well as a Trust Office that supports customers and partners with security-related issues.
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.
ISO 50001 ​ ● SAP’s headquarters in Germany operates an ISO 50001:2018-certified energy management system. ● 100% of SAP’s own major data centers are ISO 50001-certified (Walldorf, St.
ISO 50001 ​ ● SAP’s headquarters in Germany and North America and 100% of SAP’s own major data centers (St.
The maintenance of the framework is subject to certification from the British Standards Institution that confirms data protection compliance annually. Guidelines and Policies The SAP Global Data Protection and Privacy Policy outlines a group-wide minimum standard for data protection-compliant processing of personal data. It defines requirements for business processes that involve personal data and assigns clear responsibilities.
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.
The index is measured by nine questions in our #Unfiltered program (April 2022 survey). ​ 33 Table of Contents Employee Retention: Ratio of the average number of employees minus the employees who voluntarily departed, to the average number of employees, taking into account the past 12 months (in full-time equivalents, or FTEs). This ratio puts emphasis on employee-initiated turnover.
Employee Retention: Ratio of the average number of employees minus the employees who left voluntarily, to the average number of employees, taking into account the past 12 months (in full-time equivalents, or FTEs). This ratio puts emphasis on employee-initiated turnover. In other words, we seek to measure how many employees choose to stay with SAP.
The DPMS covers almost all LoBs (excluding Qualtrics) and is planned to be implemented in all acquired companies as well. It is designed as a framework covering all aspects of data protection compliance of SAP organizations and employees. The DPMS is used as SAP’s standard methodology to ensure compliance with data protection legislation.
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.
The BHCI is calculated based on the results of our #Unfiltered program (April 2022 survey). For 2023 through 2025, our ambition remains to keep the BHCI between 78% and 80%. Innovation Index: Indicates to what extent we foster an innovation culture. The index is measured by three questions in our #Unfiltered program (April 2022 survey).
The index covers questions concerning how employees rate their personal well-being, the working conditions at SAP, and our leadership culture. The BHCI is calculated based on the results of our #Unfiltered program (April 2023 survey). For 2024 through 2025, our ambition remains to keep the BHCI between 78% and 80%.
Our aspiration is to reach gender parity in our workforce at all levels and to retain women leaders.
Our aspiration is to reach gender parity in our workforce at all levels and to retain women leaders. As part of our strategic pillar “Build SAP’s Skills for the Future,” we focus on the skills transformation of our workforce.
Our security, availability, privacy, confidentiality, and processing integrity controls are designed to achieve the appropriate control objectives. In addition, independent, external auditing partners regularly conduct security compliance audits. SAP discloses vulnerabilities on the second Tuesday of every month (“Patch Day”).
How We Measure and Manage Our Performance Security and Cloud Compliance Compliance processes at SAP adhere to trust-service criteria established by the American Institute of Certified Public Accountants (AICPA). Our security, privacy, confidentiality, and processing integrity controls are designed to achieve the appropriate control objectives. In addition, independent, external auditing partners regularly conduct security compliance audits.
Leon-Rot, Newtown Square, Colorado Springs). ● Efficient power usage effectiveness (PUE) 29 at SAP headquarters in Germany and North America: 1.38 ● At SAP’s headquarters, we are in the process of implementing an on-site Power Purchase Agreement (PPA) solar project with the aim of increasing the share of renewable electricity produced on-site and achieving price stability.
At SAP’s headquarters, we are in the process of implementing an on-site Power Purchase Agreement (PPA) solar project with the aim of increasing the share of renewable electricity self-produced on-site and achieving price stability. ● As a potential third lever, we are running a green tariff pilot in Australia to power our local facilities with renewable electricity (bundled EACs).
Running SAP facilities with 100% renewable electricity ​ Since 2014, SAP has been running all its offices and data centers 30 with 100% renewable electricity in alignment with our commitment towards the RE100 initiative.
The term “data center” refers to both SAP-owned and external data centers (co-location data centers and hyperscalers). 51 Relating to the electricity consumed by cloud solutions from SAP only. ​ 43 Table of Contents ​ ​ Operations Running SAP facilities with 100% renewable electricity Since 2014, SAP has been running all its offices and data centers 52 with 100% renewable electricity in alignment with our commitment toward the RE100 initiative.
Our most important projects are listed below. ​ 47 Table of Contents Construction Projects ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ € millions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Country Location of Facility Short Description Estimated Total Costs Incurred as at Estimated Completion ​ ​ ​ ​ ​ ​ Cost ​ 12/31/2022 ​ Date Germany Berlin New office building for approx. 1,250 employees 42 7 November 2023 Germany Munich New office building for approx. 600 employees 94 44 November 2023 Germany Walldorf General renovation of headquarters building for approx. 1,500 employees 225 9 December 2026 Bulgaria Sofia New office building for approx. 1,200 employees1 58 49 September 2023 India Bangalore New office building for approx. 3,500 employees 86 1 December 2025 ​ 1 In Sofia, we bought a building under construction and plan to complete it.
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.

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Biggest changeThese amounts are included in the table above in addition to the regular compensation. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Luka Mucic ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Member of the Executive Board ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contractual Compensation ​ Compensation Awarded and Due ​ ​ 2022 2022 ​ 2021 2021 ​ ​ ​ ​ € thousands ​ 2022 (Min) (Max) ​ 2021 ​ (Min) ​ (Max) ​ 2022 in % 2021 in % Fixed compensation 750.0 750.0 750.0 737.5 737.5 737.5 750.0 23.1 737.5 17.1 Fringe benefits 1 17.2 0 75.0 17.2 0 74.0 17.2 0.5 17.2 0.4 Total non-performance compensation 767.2 750.0 825.0 754.7 737.5 811.5 767.2 23.6 754.7 17.5 Supplementary compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 0 700.0 16.3 One-year variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ STI 2021 ​ ​ ​ ​ ​ ​ ​ 1,144.0 ​ 0 ​ 1,601.6 ​ ​ 0 1,525.0 35.4 STI 2022 ​ 1,150.0 ​ 0 ​ 1,610.0 ​ ​ ​ ​ ​ ​ ​ 703.8 21.7 ​ 0 Multiyear variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ LTI 2016 Plan - Tranche 2018 ​ ​ ​ ​ ​ ​ ​ ​ -194.7 -6.0 1,327.7 30.8 LTI 2016 Plan - Tranche 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,971.6 60.7 ​ 0 LTI 2020 - Tranche 2021 ​ ​ ​ ​ ​ ​ ​ 2,770.4 ​ 0 ​ 7,387.7 ​ ​ 0 ​ 0 LTI 2020 - Tranche 2022 ​ 2,900.0 ​ 0 ​ 7,733.3 ​ ​ ​ ​ ​ ​ ​ ​ 0 ​ 0 Total performance compensation 4,050.0 0 9,343.3 3,914.4 0 8,989.3 2,480.7 76.4 3,552.7 82.5 Total 4,817.2 750.0 10,168.3 4,669.1 737.5 9,800.8 3,247.9 100.0 4,307.4 100.0 ​ For the LTI 2016 Plan tranche 2018, the difference between the actual payout amount of €1,133.0 thousand and the theoretical payout amount of €1,327.7 thousand for Luka Mucic is €194.7 thousand. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Juergen Mueller ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Member of the Executive Board ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contractual Compensation ​ Compensation Awarded and Due ​ ​ 2022 ​ 2022 ​ 2021 2021 ​ ​ ​ ​ € thousands ​ 2022 (Min) (Max) ​ 2021 ​ (Min) ​ (Max) ​ 2022 in % 2021 in % Fixed compensation 700.0 700.0 700.0 700.0 700.0 700.0 700.0 21.8 700.0 24.0 Fringe benefits 1 15.7 0 70.0 21.8 0 70.0 15.7 0.5 21.8 0.7 Total non-performance compensation 715.7 700.0 770.0 721.8 700.0 770.0 715.7 22.3 721.8 24.7 Supplementary compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 0 700.0 24.0 One-year variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ STI 2021 ​ ​ ​ ​ ​ ​ ​ 1,125.8 ​ 0 ​ 1,576.1 ​ ​ 0 1,500.6 51.3 STI 2022 ​ 1,125.8 ​ 0 ​ 1,576.1 ​ ​ ​ ​ ​ ​ ​ 689.0 21.5 ​ 0 Multiyear variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ LTI 2016 Plan - Tranche 2019 ​ ​ ​ ​ ​ ​ ​ ​ 1,805.4 56.2 ​ 0 LTI 2020 - Tranche 2021 ​ ​ ​ ​ ​ ​ ​ 2,174.3 ​ 0 ​ 5,798.1 ​ ​ 0 ​ 0 LTI 2020 - Tranche 2022 ​ 2,174.3 ​ 0 ​ 5,798.1 ​ ​ ​ ​ ​ ​ ​ ​ 0 ​ 0 Total performance compensation 3,300.1 0 7,374.2 3,300.1 0 7,374.2 2,494.3 77.7 2,200.6 75.3 Total 4,015.7 700.0 8,144.2 4,021.9 700.0 8,144.2 3,210.0 100.0 2,922.4 100.0 ​ ​ 88 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Scott Russell ​ ​ Member of the Executive Board ​ ​ Contractual Compensation ​ Compensation Awarded and Due ​ ​ 2022 2022 ​ 2021 2021 ​ ​ ​ ​ € thousands ​ 2022 ​ (Min) ​ (Max) ​ 2021 ​ (Min) ​ (Max) ​ 2022 in % 2021 in % Fixed compensation 1,000.0 1,000.0 1,000.0 733.3 733.3 733.3 1,000.0 43.8 733.3 32.8 Fringe benefits 1 70.1 0 250.0 12.6 0 183.0 70.1 3.1 12.6 0.6 Exchange rate fluctuations (euro cap)2 202.8 0 1,100.0 85.0 0 878.7 202.8 8.9 85.0 3.8 Total non-performance compensation 1,272.8 1,000.0 2,350.0 830.9 733.3 1,795.0 1,272.8 55.8 830.9 37.2 One-year variable compensation STI 2021 ​ ​ ​ 1,052.3 0 1,473.2 ​ 0 1,402.8 62.8 STI 2022 ​ 1,650.0 ​ 0 ​ 2,310.0 ​ ​ ​ ​ ​ ​ ​ 1,009.8 44.2 ​ 0 Multiyear variable compensation LTI 2020 – Tranche 2021 ​ ​ ​ 2,607.9 0 6,954.5 0 0 LTI 2020 – Tranche 2022 ​ 2,850.0 ​ 0 ​ 7,600.0 ​ ​ ​ ​ ​ ​ ​ ​ 0 ​ 0 Total performance compensation 4,500.0 0 9,910.0 3,660.2 0 8,427.7 1,009.8 44.2 1,402.8 62.8 Total 5,772.8 1,000.0 12,260.0 4,491.1 733.3 10,222.7 2,282.6 100.0 2,233.7 100.0 ​ With the relocation of Scott Russell to the United States, the Supervisory Board resolved in December 2021 to increase his annual target compensation effective January 1, 2022, from €4.8 million to €5.5 million taking a local benchmark into consideration. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thomas Saueressig ​ ​ Member of the Executive Board ​ ​ Contractual Compensation ​ Compensation Awarded and Due ​ ​ 2022 2022 ​ 2021 2021 ​ ​ ​ ​ € thousands ​ 2022 ​ (Min) ​ (Max) ​ 2021 ​ (Min) ​ (Max) ​ 2022 in % 2021 in % Fixed compensation 716.7 716.7 716.7 700.0 700.0 700.0 716.7 41.4 700.0 24.0 Fringe benefits 1 15.7 0 72.0 19.0 0 70.0 15.7 0.9 19.0 0.7 Total non-performance compensation 732.4 716.7 788.7 719.0 700.0 770.0 732.4 42.3 719.0 24.6 Supplementary compensation ​ ​ ​ ​ ​ ​ ​ 0 700.0 24.0 One-year variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ STI 2021 ​ ​ ​ 1,125.8 0 1,576.1 ​ 0 1,500.6 51.4 STI 2022 1,138.2 0 1,593.4 ​ ​ ​ 696.6 40.2 ​ 0 Multiyear variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ LTI 2016 Plan – Tranche 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 301.7 17.4 ​ 0 LTI 2020 – Tranche 2021 ​ ​ ​ 2,174.3 0 5,798.1 ​ 0 ​ 0 LTI 2020 – Tranche 2022 2,278.8 0 6,076.8 ​ ​ ​ ​ 0 ​ 0 Total performance compensation 3,417.0 0 7,670.2 3,300.1 0 7,374.2 998.3 57.7 2,200.6 75.4 Total 4,149.4 716.7 8,458.9 4,019.1 700.0 8,144.2 1,730.7 100.0 2,919.6 100.0 ​ ​ 89 Table of Contents With the reappointment of Thomas Saueressig, the Supervisory Board resolved to increase his annual target compensation from €4 million to €4.8 million.
Biggest changeThe replacement award is not considered in the maximum target compensation. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sabine Bendiek ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Member of the Executive Board (until 12/31/2023) ​ ​ Contractual Compensation ​ Compensation Awarded and Due ​ ​ ​ 2023 2023 ​ 2022 2022 ​ ​ ​ ​ € thousands ​ 2023 (Min) (Max) ​ 2022 ​ (Min) ​ (Max) ​ 2023 in % 2022 in % Fixed compensation 700.0 700.0 700.0 ​ 700.0 700.0 ​ 700.0 700.0 34.7 700.0 49.6 Fringe benefits 1 21.4 0 70.0 ​ 23.4 0 ​ 70.0 21.4 1.1 23.4 1.7 Total non-performance compensation 721.4 700.0 770.0 723.4 700.0 770.0 721.4 35.8 723.4 51.2 One-year variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ STI 2022 ​ ​ ​ ​ 1,125.8 ​ 0 ​ 1,576.1 ​ 0 689.0 48.8 STI 2023 ​ 1,125.8 ​ 0 ​ 1,576.1 ​ ​ ​ ​ ​ ​ ​ 1,295.7 64.2 ​ 0 Multiyear variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ LTI 2020 - Tranche 2022 ​ ​ ​ ​ 2,754.3 ​ 0 ​ 7,344.8 ​ 0 ​ 0 LTI 2020 - Tranche 2023 ​ 2,174.3 ​ 0 ​ 5,798.0 ​ ​ ​ ​ ​ ​ ​ ​ 0 ​ 0 Total performance compensation 3,300.0 0 7,374.1 3,880.1 0 8,920.9 1,295.7 64.2 689.0 48.8 Total 4,021.4 700.0 8,144.1 4,603.4 700.0 9,690.9 2,017.1 100.0 1,412.3 100.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Luka Mucic ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Member of the Executive Board (until 3/31/2023) ​ ​ Contractual Compensation ​ Compensation Awarded and Due ​ ​ ​ 2023 2023 ​ 2022 2022 ​ ​ ​ ​ € thousands ​ 2023 (Min) (Max) ​ 2022 ​ (Min) ​ (Max) ​ 2023 in % 2022 in % Fixed compensation 187.5 187.5 187.5 750.0 750.0 750.0 187.5 9.2 750.0 23.1 Fringe benefits 1 4.4 0 18.8 17.2 0 75.0 4.4 0.2 17.2 0.5 Total non-performance compensation 191.9 187.5 206.3 767.2 750.0 825.0 191.9 9.4 767.2 23.6 One-year variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ STI 2022 ​ ​ ​ ​ ​ ​ ​ 1,150.0 ​ 0 ​ 1,610.0 ​ ​ 0 703.8 21.7 STI 2023 ​ 287.5 ​ 0 ​ 402.5 ​ ​ ​ ​ ​ ​ ​ 330.9 16.3 ​ 0 Multiyear variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ LTI 2016 Plan - Tranche 2018 ​ ​ ​ ​ ​ ​ ​ ​ ​ 0 -194.7 -6.0 LTI 2016 Plan - Tranche 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 297.8 14.6 1,971.6 60.7 LTI 2020 - Tranche 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,213.3 59.7 ​ 0 LTI 2020 - Tranche 2022 ​ ​ ​ ​ ​ ​ ​ 2,900.0 ​ 0 ​ 7,733.3 ​ ​ 0 ​ 0 LTI 2020 - Tranche 2023 ​ 715.1 ​ 0 ​ 1,906.9 ​ ​ ​ ​ ​ ​ ​ ​ 0 ​ 0 Total performance compensation 1,002.6 0 2,309.4 4,050.0 0 9,343.3 1,842.0 90.6 2,480.7 76.4 Total 1,194.5 187.5 2,515.6 4,817.2 750.0 10,168.3 2,033.9 100.0 3,247.9 100.0 ​ 88 Table of Contents For the LTI 2016 Plan tranche 2019, the difference between the actual payout amount of €2,269.3 thousand and the theoretical payout amount of €1,971.6 thousand for Luka Mucic is €297.8 thousand. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Juergen Mueller ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Member of the Executive Board ​ ​ Contractual Compensation ​ Compensation Awarded and Due ​ ​ 2023 ​ 2023 ​ 2022 2022 ​ ​ ​ ​ € thousands ​ 2023 (Min) (Max) ​ 2022 ​ (Min) ​ (Max) ​ 2023 in % 2022 in % Fixed compensation 700.0 700.0 700.0 700.0 700.0 700.0 700.0 19.2 700.0 21.8 Fringe benefits 1 15.7 0 70.0 15.7 0 70.0 15.7 0.4 15.7 0.5 Total non-performance compensation 715.7 700.0 770.0 715.7 700.0 770.0 715.7 19.6 715.7 22.3 One-year variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ STI 2022 ​ ​ ​ ​ ​ ​ ​ 1,125.8 ​ 0 ​ 1,576.1 ​ ​ 0 689.0 21.5 STI 2023 ​ 1,125.8 ​ 0 ​ 1,576.1 ​ ​ ​ ​ ​ ​ ​ 1,295.7 35.5 ​ 0 Multiyear variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ LTI 2016 Plan - Tranche 2019 ​ ​ ​ ​ ​ ​ ​ ​ 272.8 7.5 1,805.4 56.2 LTI 2020 - Tranche 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,368.8 37.5 ​ 0 LTI 2020 - Tranche 2022 ​ ​ ​ ​ ​ ​ ​ 2,174.3 ​ 0 ​ 5,798.1 ​ ​ 0 ​ 0 LTI 2020 - Tranche 2023 ​ 2,174.3 ​ 0 ​ 5,798.1 ​ ​ ​ ​ ​ ​ ​ ​ 0 ​ 0 Total performance compensation 3,300.1 0 7,374.2 3,300.1 0 7,374.2 2,937.3 80.4 2,494.3 77.7 Total 4,015.7 700.0 8,144.2 4,015.7 700.0 8,144.2 3,653.0 100.0 3,210.0 100.0 ​ For the LTI 2016 Plan tranche 2019, the difference between the actual payout amount of €2,078.2 thousand and the theoretical payout amount of €1,805.4 thousand for Juergen Mueller is €272.8 thousand. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Scott Russell ​ ​ Member of the Executive Board ​ ​ Contractual Compensation ​ Compensation Awarded and Due ​ ​ 2023 2023 ​ 2022 2022 ​ ​ ​ ​ € thousands ​ 2023 ​ (Min) ​ (Max) ​ 2022 ​ (Min) ​ (Max) ​ 2023 in % 2022 in % Fixed compensation 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 1,000.0 32.5 1,000.0 43.8 Fringe benefits 1 64.5 0 431.0 70.1 0 250.0 64.5 2.1 70.1 3.1 Exchange rate fluctuations (euro cap) 2 112.7 0 1,100.0 202.8 0 1,100.0 112.7 3.7 202.8 8.9 Total non-performance compensation 1,177.3 1,000.0 2,531.0 1,272.8 1,000.0 2,350.0 1,177.3 38.3 1,272.8 55.8 One-year variable compensation STI 2022 ​ ​ ​ 1,650.0 0 2,310.0 ​ 0 1,009.8 44.2 STI 2023 ​ 1,650.0 ​ 0 ​ 2,310.0 ​ ​ ​ ​ ​ ​ ​ 1,899.2 61.7 ​ 0 Multiyear variable compensation LTI 2020 – Tranche 2022 ​ ​ ​ 2,850.0 0 7,600.0 0 0 LTI 2020 – Tranche 2023 ​ 2,850.0 ​ 0 ​ 7,600.0 ​ ​ ​ ​ ​ ​ ​ ​ 0 ​ 0 Total performance compensation 4,500.0 0 9,910.0 4,500.0 0 9,910.0 1,899.2 61.7 1,009.8 44.2 Total 5,677.3 1,000.0 12,441.0 5,772.8 1,000.0 12,260.0 3,076.4 100.0 2,282.6 100.0 ​ 89 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Thomas Saueressig ​ ​ Member of the Executive Board ​ ​ Contractual Compensation ​ Compensation Awarded and Due ​ ​ 2023 2023 ​ 2022 2022 ​ ​ ​ ​ € thousands ​ 2023 ​ (Min) ​ (Max) ​ 2022 ​ (Min) ​ (Max) ​ 2023 in % 2022 in % Fixed compensation 800.0 800.0 800.0 716.7 716.7 716.7 800.0 22.2 716.7 41.4 Fringe benefits 1 15.9 0 80.0 15.7 0 72.0 15.9 0.4 15.7 0.9 Total non-performance compensation 815.9 800.0 880.0 732.4 716.7 788.7 815.9 22.6 732.4 42.3 One-year variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ STI 2022 ​ ​ ​ 1,138.2 0 1,593.4 ​ 0 696.6 40.2 STI 2023 1,200.0 0 1,680.0 ​ ​ ​ 1,381.2 38.2 ​ 0 Multiyear variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ LTI 2016 Plan – Tranche 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 45.6 1.3 301.7 17.4 LTI 2020 – Tranche 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1,368.8 37.9 ​ 0 LTI 2020 – Tranche 2022 ​ ​ ​ 2,278.8 0 6,076.8 ​ 0 ​ 0 LTI 2020 – Tranche 2023 2,800.0 0 7,466.7 ​ ​ ​ ​ 0 ​ 0 Total performance compensation 4,000.0 0 9,146.7 3,417.0 0 7,670.2 2,795.6 77.4 998.3 57.7 Total 4,815.9 800.0 10,026.7 4,149.4 716.7 8,458.9 3,611.5 100.0 1,730.7 100.0 ​ For the LTI 2016 Plan tranche 2019, the difference between the actual payout amount of €347.3 thousand and the theoretical payout amount of €301.7 thousand for Thomas Saueressig is €45.6 thousand. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Julia White ​ ​ Member of the Executive Board ​ ​ Contractual Compensation ​ Compensation Awarded and Due ​ ​ 2023 2023 ​ 2022 2022 ​ ​ ​ ​ € thousands ​ 2023 ​ (Min) ​ (Max) ​ 2022 ​ (Min) ​ (Max) ​ 2023 in % 2022 in % Fixed compensation ​ 750.0 ​ 750.0 ​ 750.0 ​ 750.0 ​ 750.0 ​ 750.0 ​ 750.0 29.3 750.0 32.9 Fringe benefits 1 73.9 0 343.1 ​ 89.8 ​ 0 ​ 188.0 73.9 2.9 89.8 3.9 Exchange rate fluctuations (euro cap) 2 230.1 0 800.0 ​ 369.6 ​ 0 ​ 800.0 230.1 9.0 369.6 16.2 Total non-performance compensation 1,053.9 750.0 1,893.1 1,209.4 750.0 1,738.0 1,053.9 41.2 1,209.4 53.0 One-year variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ STI 2022 ​ ​ ​ ​ 1,750.0 ​ 0 ​ 2,450.0 ​ 0 1,071.0 47.0 STI 2023 ​ 1,304.9 ​ 0 ​ 1,826.9 ​ ​ ​ ​ ​ ​ ​ 1,502.0 58.8 ​ 0 Multiyear variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ LTI 2020 – Tranche 2022 ​ ​ ​ ​ 3,500.0 ​ 0 ​ 9,333.3 ​ 0 ​ 0 LTI 2020 – Tranche 2023 ​ 2,461.5 ​ 0 ​ 6,564.1 ​ ​ ​ ​ ​ ​ ​ ​ 0 ​ 0 Total performance compensation 3,766.5 0 8,391.0 5,250.0 0 11,783.3 1,502.0 58.8 1,071.0 47.0 Total 4,820.4 750.0 10,284.1 6,459.4 750.0 13,521.3 2,555.9 100.0 2,280.4 100.0 ​ ​ 90 Table of Contents With her appointment to the Executive Board, Julia White received exceptional grants to compensate the loss of previously earned and forfeited compensation with her previous employer.
The market performance factor has a cap at 150% at the 75th percentile (P-75) and a hurdle of 50% at 25th percentile (P-25); below the hurdle, no MSUs are considered. ​ 80 Table of Contents The following examples of the MSU calculation illustrate possible outcomes assuming 1,000 MSUs granted: ​ ​ ​ ​ ​ SAP TSR performs better than TSR of NASDAQ-100 companies SAP TSR performance ​ ​ ​ 10% Performance factor ​ 55th percentile ​ 110% Final number of MSUs 110% x 1,000 1,100 ​ ​ ​ ​ ​ SAP TSR performs better than TSR of NASDAQ-100 companies; cap is triggered SAP TSR performance ​ ​ 18% Performance factor 80th percentile 160% Cap 75th percentile ​ ​ 150% Final number of MSUs 150% x 1,000 1,500 ​ ​ ​ ​ ​ SAP TSR performs better than TSR of NASDAQ-100 companies; in a downwards market trend SAP TSR performance ​ ​ –5% Performance factor 60th percentile 120% Cap due to required positive performance ​ ​ 100% Final number of MSUs 100% x 1,000 1,000 ​ ​ ​ ​ ​ TSR of NASDAQ-100 companies perform better than SAP TSR; low hurdle is triggered SAP TSR performance ​ ​ –5% Performance factor 20th percentile 40% Hurdle 25th percentile ​ ​ 0% Final number of MSUs 0% x 1,000 0 ​ Payout of FSUs, MSUs, and RSUs The value of the existing FSUs, MSUs, and RSUs will be paid out in euros following the Annual General Meeting of SAP, which accepts the financial statements for the third financial year following the financial year in which the Share Units were awarded.
The market performance factor has a cap at 150% at the 75th percentile (P-75) and a hurdle of 50% at 25th percentile (P-25); below the hurdle, no MSUs are considered. ​ 79 Table of Contents The following examples of the MSU calculation illustrate possible outcomes assuming 1,000 MSUs granted: ​ ​ ​ ​ ​ SAP TSR performs better than TSR of NASDAQ-100 companies SAP TSR performance ​ ​ ​ +10% Performance factor ​ 55th percentile ​ 110% Final number of MSUs 110% x 1,000 1,100 ​ ​ ​ ​ ​ SAP TSR performs better than TSR of NASDAQ-100 companies; cap is triggered SAP TSR performance ​ ​ +18% Performance factor 80th percentile 160% ​ Cap 75th percentile ​ 150% Final number of MSUs 150% x 1,000 1,500 ​ ​ ​ ​ ​ SAP TSR performs better than TSR of NASDAQ-100 companies; in a downwards market trend SAP TSR performance ​ ​ –5% Performance factor 60th percentile 120% ​ Cap due to required positive performance ​ 100% Final number of MSUs 100% x 1,000 1,000 ​ ​ ​ ​ ​ TSR of NASDAQ-100 companies perform better than SAP TSR; low hurdle is triggered SAP TSR performance ​ ​ –5% Performance factor 20th percentile 40% ​ Hurdle 25th percentile ​ 0% Final number of MSUs 0% x 1,000 0 ​ Payout of FSUs, MSUs, and RSUs The value of the existing FSUs, MSUs, and RSUs will be paid out in euros following the Annual General Meeting of SAP, which accepts the financial statements for the third financial year following the financial year in which the Share Units were awarded.
Other employee representatives include the group works council (composed of members of the works councils of SAP SE, SAP Germany, hybris 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, 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).
Clawback Provisions 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 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.
Any share-based payment awards received by employee-elected members relate to their position as SAP employees and not to their work on the Supervisory Board. Supervisory Board: Other Information We did not grant any compensation advance or credit to, or enter into any commitment for the benefit of, any member of our Supervisory Board in 2022 or the previous year.
Any share-based payment awards received by employee-elected members relate to their position as SAP employees and not to their work on the Supervisory Board. Supervisory Board: Other Information We did not grant any compensation advance or credit to, or enter into any commitment for the benefit of, any member of our Supervisory Board in 2023 or the previous year.
LTI Grant Process The number of RSUs does not change throughout the term, whereas the number of FSUs and MSUs may be subject to change as follows: ​ 78 Table of Contents Numerical Change in FSUs The final number of FSUs changes depending on SAP’s performance against the three equally weighted financial KPI targets over the entire three-year performance period.
LTI Grant Process ​ 77 Table of Contents The number of RSUs does not change throughout the term, whereas the number of FSUs and MSUs may be subject to change as follows: Numerical Change in FSUs The final number of FSUs changes depending on SAP’s performance against the three equally weighted financial KPI targets over the entire three-year performance period.
In addition, the LTI 2020 includes a component designed to ensure long-term retention of our Executive Board members. ​ 77 Table of Contents The LTI 2020 is a virtual share program under which annual tranches with a term of approximately four years each are granted.
In addition, the LTI 2020 includes a component designed to ensure long-term retention of our Executive Board members. ​ 76 Table of Contents The LTI 2020 is a virtual share program under which annual tranches with a term of approximately four years each are granted.
To illustrate the maximum total compensation, the LTI is allocated as high as the defined ranges allow, and the fixed compensation is allocated as low as the defined ranges allow. For this purpose, the recurring benefits include retirement pension, foreign currency exchange rate cap, and fringe benefits.
To illustrate the maximum total compensation including all maximum benefits, the LTI is allocated as high as the defined ranges allow, and the fixed compensation is allocated as low as the defined ranges allow. For this purpose, the recurring benefits include retirement pension, foreign currency exchange rate cap, and fringe benefits.
For the STI 2022, the financial KPIs have a total weighting of 80% and comprise non-IFRS constant currency current cloud backlog in 2022; year-over-year growth in non-IFRS constant currency cloud and software revenue in 2022; and non-IFRS constant currency operating margin development in 2022 year over year.
For the STI 2023, the financial KPIs have a total weighting of 80% and comprise non-IFRS constant currency current cloud backlog in 2023; year-over-year growth in non-IFRS constant currency cloud and software revenue in 2023; and non-IFRS constant currency operating margin development in 2023 year over year.
For more information about KPIs, see the Performance Management System section in the SAP Integrated Report 2022. Each underlying KPI includes a hurdle and a cap in addition to the overall hurdle of 50% and the overall cap of 140%.
For more information about KPIs, see the Performance Management System section in the SAP Integrated Report 2023. Each underlying KPI includes a hurdle and a cap in addition to the overall hurdle of 50% and the overall cap of 140%.
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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2018 to 2017 2019 to 2018 2020 to 2019 2021 2021 to 2020 2022 2022 to 2021 ​ ​ 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 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.
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 2022.
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.
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. 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.
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.
Any members of the Supervisory Board who have served for less than the entire year receive one-twelfth of the annual remuneration for each month of service commenced.
Any members of the Supervisory Board who have served for less than the entire year receive one-twelfth of the annual compensation for each month of service commenced.
The compensation contains performance-based elements and non-performance-based elements, as follows: ​ 75 Table of Contents 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 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.
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 62nd birthday, after which it is replaced by a retirement pension.
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.
Executive Board members who have their permanent residence abroad are granted reimbursement of expenses for tax advice with a maximum value of 15% of fixed compensation for ordinary Executive Board members and 30% for the CEO.
Executive Board members who have their permanent residence outside Germany are granted reimbursement of expenses for tax advice with a maximum value of 15% of fixed compensation for ordinary Executive Board members and 30% for the CEO.
The grant amount is divided by the SAP share price, which corresponds to the arithmetic mean on the 20 trading days after scheduled publication of the preliminary results for the fourth quarter and the year as a whole (grant price). In 2022, the financial results were published on January 27, 2022.
The grant amount is divided by the SAP share price, which corresponds to the arithmetic mean on the 20 trading days after scheduled publication of the preliminary results for the fourth quarter and the year as a whole (grant price). In 2023, the financial results were published on January 26, 2023.
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.
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.
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 corporate development and strategy, security and secrecy, compliance, sustainability and business networks.
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.
STI Total Target Achievement ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage 2022 2021 2020 2019 2018 ​ 61.2 133.3 0 82.4 93.0 ​ The relation between the LTI target amounts for the 2019 to 2022 tranches and the theoretical payout amounts are based on SAP’s share price at year end.
STI Total Target Achievement ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage 2023 2022 2021 2020 2019 ​ 115.1 61.2 133.3 0 82.4 ​ The relation between the LTI target amounts for the 2020 to 2023 tranches and the theoretical payout amounts are based on SAP’s share price at year end.
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, outlines the criteria that apply to the compensation for the year 2022, and discloses the amount of compensation.
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.
For further information see Item 5 - Financial Targets and Prospects . For more information about employee compensation and a breakdown of the components of personnel expense, see the Notes to the Consolidated Financial Statements, Note (B.1) and Note (B.2) . Employee and Labor Relations On a worldwide basis, we believe that our employee and labor relations are excellent.
For more information about employee compensation and a breakdown of personnel expense, see the Notes to the Consolidated Financial Statements, Note (B.1) and Note (B.2) . Employee and Labor Relations On a worldwide basis, we believe that our employee and labor relations are excellent.
Friederike Rotsch (from 5/17/2018) ​ NA ​ 62 ​ 3 ​ 232 ​ 8 ​ 335 ​ 44 ​ Heike Steck (from 5/15/2019) ​ NA ​ NA ​ 50 ​ 204 ​ 9 ​ 270 ​ 32 ​ Helmut Stengele (from 10/29/2021) ​ NA ​ NA ​ NA ​ 41 ​ NA ​ 165 ​ 300 ​ Dr.
Friederike Rotsch (from 5/17/2018) ​ 62 ​ 3 ​ 8 ​ 335 ​ 44 ​ 385 ​ 15 ​ Heike Steck (from 5/15/2019) ​ NA ​ 50 ​ 9 ​ 270 ​ 32 ​ 270 ​ 0 ​ Helmut Stengele (from 10/29/2021) ​ NA ​ NA ​ NA ​ 165 ​ 300 ​ 165 ​ 0 ​ Dr.
Rouven Westphal 4, 5, 7, 9, 15 50 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, 10, 15 45 Chief Financial Officer, Warner Bros.
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.
The Supervisory Board reviews, assesses, and sets the target compensation in its first meeting of each fiscal year (February 23, 2022, for 2022). The Supervisory Board is of the opinion that this approach ensures that the compensation is appropriate. The compensation system is designed to support the growth in value for the Company over the long term.
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 following target achievement curves applied for the STI 2022: Financial KPIs Non-Financial KPIs LTI 2020 − Tranche 2022 − FSU 100% Targets In 2022, the Supervisory Board defined the 100% targets for the FSUs of the LTI 2020 – tranche 2022.
The following target achievement curves applied for the STI 2023: Financial KPIs Non-Financial KPIs 83 Table of Contents LTI 2020 − Tranche 2023 − FSU 100% Targets In 2023, the Supervisory Board defined the 100% targets for the FSUs of the LTI 2020 tranche 2023.
The difference in the payout amount according to share price and performance factor development between the year end and the end of the performance period pursuant to the plan terms will also be disclosed. 1 Value is determined at time of payout after Compensation Report has been prepared.
The difference in the payout amount according to share price and performance factor development between the year end and the end of the performance period pursuant to the plan terms will also be disclosed. 1 Value is determined at time of payout after the Compensation Report has been prepared. 85 Table of Contents In addition, the difference in the payout amount according to share price and performance factor development between the year end and the end of the performance period pursuant to the plan terms of the LTI 2016 Plan tranche 2019 is disclosed in 2023.
The benchmarking was conducted in February 2022 based on the compensation data from the DAX 30 companies as well as selected U.S.-based IT and other technology companies. 39 This benchmark was the basis for all compensation decisions made in 2022 and led to no changes.
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.
Relation Between Target Amount and Payout Amount of the LTI ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage ​ LTI 2020 ​ LTI 2016 Plan ​ ​ ​ ​ ​ ​ ​ ​ 2022 2021 2020 2019 2018 ​ Tranche 1 Tranche 1 Tranche 1 Tranche 1 Tranche 12/31/2022 ​ 94.0 ​ 100.9 43.7 83.0 47.7 12/31/2021 NA ​ 131.8 ​ 54.7 ​ 96.9 ​ 55.9 ​ 1 Consideration of theoretical payout amounts based on SAP’s share price and market data at year end Amount of Compensation for 2022 We present the Executive Board compensation disclosures in accordance with section 162 of the AktG, for the current year as well as for the previous year 2021.
Relation Between Target Amount and Payout Amount of the LTI ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Percentage ​ LTI 2020 ​ LTI 2016 Plan ​ ​ ​ ​ ​ ​ ​ ​ 2023 2022 2021 2020 2019 ​ Tranche 1 Tranche 1 Tranche 1 Tranche 1 Tranche 12/31/2023 ​ 149.1 ​ 158.5 165.9 63.0 95.6 12/31/2022 NA ​ 94.0 ​ 100.9 ​ 43.7 ​ 83.0 ​ 1 Consideration of theoretical payout amounts based on SAP’s share price and market data at year end Amount of Compensation for 2023 We present the Executive Board compensation disclosures in accordance with section 162 of the AktG, for the current year as well as for the previous year 2022.
The 2018 tranche discloses the relation between the respective target amount and the actual payout amount in May 2022. The payout price for the tranche 2018 was calculated as the average share price between January 28 and February 24, 2022.
The 2019 tranche discloses the relation between the respective target amount and the actual payout amount in May 2023. The payout price for the tranche 2019 was calculated as the average share price between January 27, 2023, and February 24, 2023.
Additionally, to the extent that compensation benefit earned prior moving to the SAP Executive Board is lost due to this move, a one-off payment (replacement award) could be granted in an amount of up to 200% of the fixed compensation. Retirement Pension The retirement pension plan that applies at SAP is based on defined contributions.
Additionally, to the extent that compensation benefit earned prior to moving to the SAP Executive Board is lost due to this move, a one-off payment (replacement award) could be granted in an amount of up to 200% of the fixed compensation.
(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. In addition, some of these employees are subject to a collective bargaining agreement.
(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.
Qi Lu (from 12/21/2020) NA NA NA 192 1,288 270 41 ​ Gerhard Oswald (from 1/1/2019) NA NA 6 223 -3 276 24 ​ Christine Regitz ​ 0 ​ 4 ​ 1 ​ 208 ​ 5 ​ 279 ​ 34 ​ Dr.
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.
The applicable income threshold is the statutory annual income threshold for the state pension plan in Germany (West), as amended from time to time. – SAP made contributions to a third-party pension plan for Scott Russell and Julia White. SAP’s matching contributions are based on payments by Scott Russell and Julia White into their pension plan.
The applicable income threshold is the statutory annual income threshold for the state pension plan in Germany (West), as amended from time to time. – SAP made contributions to a third-party pension plan for Scott Russell and Julia White.
Rouven Westphal (from 5/12/2021) ​ NA ​ NA ​ NA ​ 139 ​ NA ​ 323 ​ 133 ​ Dr.
Rouven Westphal (from 5/12/2021) ​ NA ​ NA ​ NA ​ 323 ​ 133 ​ 309 ​ -4 ​ Dr.
The total loss of compensation was €3.48 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 2022 in an LTI grant of €0.58 million (2021: STI of €0.3 million, LTI grant of €1.2 million, and replacement award of €1.4 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 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.
Unearned grants are forfeited. ​ 81 Table of Contents LTI Forfeiture Rules (including example calculation 1 ) 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 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.
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. Directors, Senior Management and Employees — Compensation Report ” and Note (B.3) to our Consolidated Financial Statements.
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.
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 € 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.
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.
For more information about the terms and details of these programs, see the Notes to the Consolidated Financial Statements of the Integrated Report 2022, Note (B.3) . ​ 91 Table of Contents Executive Board Members’ Holdings ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1/1/2022 ​ During the Year ​ 12/31/2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Exercised (E)/ ​ ​ ​ ​ ​ Thereof ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted (A)/ ​ ​ ​ Thereof ​ Subject to Quantity of Share Units ​ Specification ​ Grant Date ​ Outstanding ​ Granted ​ Forfeited (F) ​ Outstanding ​ Unvested ​ Holding Period ​ ​ LTI 2020 – Tranche 2022 – FSU ​ 3/28/2022 ​ 0 ​ 17,197 ​ 0 ​ 17,197 ​ 17,197 ​ 17,197 ​ ​ LTI 2020 – Tranche 2022 – MSU ​ 3/28/2022 ​ 0 ​ 17,197 ​ 0 ​ 17,197 ​ 17,197 ​ 17,197 ​ ​ LTI 2020 – Tranche 2022 – RSU ​ 3/28/2022 ​ 0 ​ 17,197 ​ 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 ​ ​ 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 ​ 0 ​ 14,834 ​ 14,834 ​ 14,834 Christian Klein (CEO) ​ LTI 2020 – Tranche 2020 – MSU ​ 2/29/2020 ​ 14,834 ​ 0 ​ 0 ​ 14,834 ​ 14,834 ​ 14,834 ​ ​ LTI 2020 – Tranche 2020 – RSU ​ 2/29/2020 ​ 14,834 ​ 0 ​ 0 ​ 14,834 ​ 14,834 ​ 14,834 ​ ​ LTI 2016 – Tranche 2019 – PSU ​ 11/20/2019 ​ 4,678 ​ 0 ​ 0 ​ 4,678 ​ 0 ​ 4,678 ​ ​ LTI 2016 – Tranche 2019 – PSU ​ 2/20/2019 ​ 15,628 ​ 0 ​ 0 ​ 15,628 ​ 0 ​ 15,628 ​ ​ LTI 2016 – Tranche 2019 – RSU ​ 11/20/2019 ​ 3,119 ​ 0 ​ 0 ​ 3,119 ​ 0 ​ 3,119 ​ ​ LTI 2016 – Tranche 2019 – RSU ​ 2/20/2019 ​ 10,419 ​ 0 ​ 0 ​ 10,419 ​ 0 ​ 10,419 ​ ​ LTI 2016 – Tranche 2018 – PSU ​ 2/21/2018 ​ 13,431 ​ 0 ​ -13,431 A 0 ​ 0 ​ 0 ​ ​ LTI 2016 – Tranche 2018 – RSU ​ 2/21/2018 ​ 8,954 ​ 0 ​ -8,954 E 0 ​ 0 ​ 0 ​ ​ LTI 2020 – Tranche 2022 – FSU ​ 3/28/2022 ​ 0 ​ 8,612 ​ 0 ​ 8,612 ​ 8,612 ​ 8,612 ​ ​ LTI 2020 – Tranche 2022 – MSU ​ 3/28/2022 ​ 0 ​ 8,612 ​ 0 ​ 8,612 ​ 8,612 ​ 8,612 Sabine Bendiek ​ LTI 2020 – Tranche 2022 – RSU ​ 3/28/2022 ​ 0 ​ 8,612 ​ 0 ​ 8,612 ​ 8,612 ​ 8,612 ​ ​ LTI 2020 – Tranche 2021 – FSU ​ 3/22/2021 ​ 10,570 ​ 0 ​ 0 ​ 10,570 ​ 10,570 ​ 10,570 ​ ​ LTI 2020 – Tranche 2021 – MSU ​ 3/22/2021 ​ 10,570 ​ 0 ​ 0 ​ 10,570 ​ 10,570 ​ 10,570 ​ ​ LTI 2020 – Tranche 2021 – RSU ​ 3/22/2021 ​ 10,570 ​ 0 ​ 0 ​ 10,570 ​ 10,570 ​ 10,570 ​ ​ LTI 2020 – Tranche 2022 – FSU ​ 3/28/2022 ​ 0 ​ 9,068 ​ 0 ​ 9,068 ​ 9,068 ​ 9,068 ​ ​ LTI 2020 – Tranche 2022 – MSU ​ 3/28/2022 ​ 0 ​ 9,068 ​ 0 ​ 9,068 ​ 9,068 ​ 9,068 ​ ​ LTI 2020 – Tranche 2022 – RSU ​ 3/28/2022 ​ 0 ​ 9,068 ​ 0 ​ 9,068 ​ 9,068 ​ 9,068 ​ ​ LTI 2020 – Tranche 2021 – FSU ​ 3/22/2021 ​ 8,679 ​ 0 ​ 0 ​ 8,679 ​ 8,679 ​ 8,679 ​ LTI 2020 – Tranche 2021 – MSU ​ 3/22/2021 ​ 8,679 ​ 0 ​ 0 ​ 8,679 ​ 8,679 ​ 8,679 ​ LTI 2020 – Tranche 2021 – RSU ​ 3/22/2021 ​ 8,679 ​ 0 ​ 0 ​ 8,679 ​ 8,679 ​ 8,679 Luka Mucic ​ LTI 2020 – Tranche 2020 – FSU ​ 2/29/2020 ​ 6,403 ​ 0 ​ 0 ​ 6,403 ​ 6,403 ​ 6,403 ​ LTI 2020 – Tranche 2020 – MSU ​ 2/29/2020 ​ 6,403 ​ 0 ​ 0 ​ 6,403 ​ 6,403 ​ 6,403 ​ LTI 2020 – Tranche 2020 – RSU ​ 2/29/2020 ​ 6,403 ​ 0 ​ 0 ​ 6,403 ​ 6,403 ​ 6,403 ​ ​ LTI 2016 – Tranche 2019 – PSU ​ 2/20/2019 ​ 15,628 ​ 0 ​ 0 ​ 15,628 ​ 0 ​ 15,628 ​ ​ LTI 2016 – Tranche 2019 – RSU ​ 2/20/2019 ​ 10,419 ​ 0 ​ 0 ​ 10,419 ​ 0 ​ 10,419 ​ LTI 2016 – Tranche 2018 – PSU ​ 2/21/2018 ​ 15,944 ​ 0 ​ -15,944 A 0 ​ 0 ​ 0 ​ ​ LTI 2016 – Tranche 2018 – RSU ​ 2/21/2018 ​ 10,630 ​ 0 ​ -10,630 E 0 ​ 0 ​ 0 ​ ​ LTI 2020 – Tranche 2022 – FSU ​ 3/28/2022 ​ 0 ​ 8,911 ​ 0 ​ 8,911 ​ 8,911 ​ 8,911 ​ ​ LTI 2020 – Tranche 2022 – MSU ​ 3/28/2022 ​ 0 ​ 8,911 ​ 0 ​ 8,911 ​ 8,911 ​ 8,911 Scott Russell ​ LTI 2020 – Tranche 2022 – RSU ​ 3/28/2022 ​ 0 ​ 8,911 ​ 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 2022 – FSU ​ 3/28/2022 ​ 0 ​ 6,798 ​ 0 ​ 6,798 ​ 6,798 ​ 6,798 ​ ​ LTI 2020 – Tranche 2022 – MSU ​ 3/28/2022 ​ 0 ​ 6,798 ​ 0 ​ 6,798 ​ 6,798 ​ 6,798 ​ ​ LTI 2020 – Tranche 2022 – RSU ​ 3/28/2022 ​ 0 ​ 6,798 ​ 0 ​ 6,798 ​ 6,798 ​ 6,798 ​ ​ 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 Juergen Mueller ​ 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 ​ 0 ​ 5,864 ​ 5,864 ​ 5,864 ​ 92 Table of Contents ​ ​ LTI 2020 – Tranche 2020 – MSU ​ 2/29/2020 ​ 5,864 ​ 0 ​ 0 ​ 5,864 ​ 5,864 ​ 5,864 ​ LTI 2020 – Tranche 2020 – RSU ​ 2/29/2020 ​ 5,864 ​ 0 ​ 0 ​ 5,864 ​ 5,864 ​ 5,864 ​ LTI 2016 – Tranche 2019 – PSU ​ 2/20/2019 ​ 14,311 ​ 0 ​ 0 ​ 14,311 ​ 0 ​ 14,311 ​ LTI 2016 – Tranche 2019 – RSU ​ 2/20/2019 ​ 9,541 ​ 0 ​ 0 ​ 9,541 ​ 0 ​ 9,541 ​ ​ LTI 2020 – Tranche 2022 – FSU ​ 3/28/2022 ​ 0 ​ 7,125 ​ 0 ​ 7,125 ​ 7,125 ​ 7,125 ​ LTI 2020 – Tranche 2022 – MSU ​ 3/28/2022 ​ 0 ​ 7,125 ​ 0 ​ 7,125 ​ 7,125 ​ 7,125 ​ ​ LTI 2020 – Tranche 2022 – RSU ​ 3/28/2022 ​ 0 ​ 7,125 ​ 0 ​ 7,125 ​ 7,125 ​ 7,125 ​ ​ 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 Thomas Saueressig ​ 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 ​ 0 ​ 5,864 ​ 5,864 ​ 5,864 ​ ​ LTI 2020 - Tranche 2020 - MSU ​ 2/29/2020 ​ 5,864 ​ 0 ​ 0 ​ 5,864 ​ 5,864 ​ 5,864 ​ ​ LTI 2020 - Tranche 2020 - RSU ​ 2/29/2020 ​ 5,864 ​ 0 ​ 0 ​ 5,864 ​ 5,864 ​ 5,864 ​ LTI 2016 – Tranche 2019 – PSU ​ 11/1/2019 ​ 2,392 ​ 0 ​ 0 ​ 2,392 ​ 0 ​ 2,392 ​ LTI 2016 – Tranche 2019 – RSU ​ 11/1/2019 ​ 1,594 ​ 0 ​ 0 ​ 1,594 ​ 0 ​ 1,594 ​ ​ LTI 2020 – Tranche 2022 – FSU ​ 3/28/2022 ​ 0 ​ 10,944 ​ 0 ​ 10,944 ​ 10,944 ​ 10,944 ​ ​ LTI 2020 – Tranche 2022 – MSU ​ 3/28/2022 ​ 0 ​ 10,944 ​ 0 ​ 10,944 ​ 10,944 ​ 10,944 Julia White ​ LTI 2020 – Tranche 2022 – RSU ​ 3/28/2022 ​ 0 ​ 10,944 ​ 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 ​ ​ ​ ​ 436,418 205,965 -48,959 ​ 593,424 505,695 593,424 ​ ​ 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 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 LTI 2016 – Tranche 2018 – PSU ​ 2/21/2018 ​ 85.236 ​ 80.84 ​ February 2022 ​ 12/31/2021 ​ May 2022 LTI 2016 – Tranche 2018 – RSU 2/21/2018 85.236 79.01 NA 12/31/2021 May 2022 ​ 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: – 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.
For 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.
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. ​ 85 Table of Contents Therefore, the STI 2022 and the LTI 2016 Plan tranche 2019 are both reported in 2022.
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.
Compensation of Former Executive Board Members in 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ LTI 2016 Plan – LTI 2016 Plan – Total Performance ​ ​ € thousands ​ Tranche 2019 ​ Tranche 2018 1 ​ Compensation ​ % of Total ​ Total Robert Enslin (until 4/5/2019) 1,053.3 -65.4 987.9 100.0 987.9 Michael Kleinemeier (until 4/30/2020) 1,763.6 -146.1 1,617.5 100.0 1,617.5 Bernd Leukert (until 3/31/2019) 1,894.2 -177.9 1,716.2 100.0 1,716.2 Bill McDermott (until 11/15/2019) 3,609.8 -294.4 3,315.4 100.0 3,315.4 Jennifer Morgan (until 4/30/2020) 2,805.0 -194.7 2,610.4 100.0 2,610.4 Stefan Ries (until 5/31/2020) 1,660.7 -164.0 1,496.7 100.0 1,496.7 ​ 1 Individual amount resulting from the difference between the actual payout amount in 2022 and the theoretical payout amount as at December 31, 2021 ​ 96 Table of Contents LTI Holdings of Former Executive Board Members in 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1/1/2022 During the Year 12/31/2022 ​ ​ ​ ​ Exercised (E)/ ​ ​ Thereof Subject ​ ​ ​ ​ ​ ​ ​ ​ Adjusted (A)/ ​ ​ ​ Thereof ​ to Holding Quantity of Share Units ​ Specification ​ Grant Date ​ Outstanding ​ Forfeited (F) ​ Outstanding ​ Unvested ​ Period ​ LTI 2016 – Tranche 2019 – PSU ​ 2/20/2019 ​ 15,893 ​ 0 ​ 15,893 0 15,893 Robert Enslin LTI 2016 – Tranche 2019 – RSU ​ 2/20/2019 ​ 722 ​ 0 ​ 722 0 722 (until 4/5/2019) LTI 2016 – Tranche 2018 – PSU ​ 2/21/2018 ​ 5,354 ​ -5,354 A 0 0 0 ​ LTI 2016 – Tranche 2018 – RSU ​ 2/21/2018 ​ 3,569 ​ -3,569 E 0 0 0 ​ LTI 2020 – Tranche 2020 – FSU ​ 2/29/2020 ​ 6,403 ​ 0 ​ 6,403 0 6,403 ​ LTI 2020 – Tranche 2020 – MSU ​ 2/29/2020 ​ 6,403 ​ 0 ​ 6,403 0 6,403 Michael Kleinemeier LTI 2020 – Tranche 2020 – RSU ​ 2/29/2020 ​ 6,403 ​ 0 ​ 6,403 0 6,403 (until 4/30/2020) LTI 2016 – Tranche 2019 – PSU ​ 2/20/2019 ​ 20,375 ​ 0 ​ 20,375 0 20,375 ​ LTI 2016 – Tranche 2019 – RSU ​ 2/20/2019 ​ 5,213 ​ 0 ​ 5,213 0 5,213 ​ LTI 2016 – Tranche 2018 – PSU ​ 2/21/2018 ​ 15,944 ​ -15,944 A 0 0 0 ​ LTI 2016 – Tranche 2018 – RSU ​ 2/21/2018 ​ 7,974 ​ -7,974 E 0 0 0 ​ LTI 2016 – Tranche 2019 – PSU ​ 2/20/2019 ​ 20,335 ​ 0 ​ 20,335 0 20,335 Bernd Leukert LTI 2016 – Tranche 2019 – RSU ​ 2/20/2019 ​ 6,594 ​ 0 ​ 6,594 0 6,594 (until 3/31/2019) LTI 2016 – Tranche 2018 – PSU ​ 2/21/2018 ​ 17,959 ​ -17,959 A 0 0 0 ​ LTI 2016 – Tranche 2018 – RSU ​ 2/21/2018 ​ 9,719 ​ -9,719 E 0 0 0 ​ LTI 2016 – Tranche 2019 – PSU ​ 2/20/2019 ​ 46,880 ​ 0 ​ 46,880 0 46,880 Bill McDermott LTI 2016 – Tranche 2019 – RSU ​ 2/20/2019 ​ 7,348 ​ 0 ​ 7,348 0 7,348 (until 11/15/2019) LTI 2016 – Tranche 2018 – PSU ​ 2/21/2018 ​ 24,113 ​ -24,113 A 0 0 0 ​ LTI 2016 – Tranche 2018 – RSU ​ 2/21/2018 ​ 16,075 ​ -16,075 E 0 0 0 ​ LTI 2020 – Tranche 2020 – FSU ​ 2/29/2020 ​ 4,904 ​ 0 ​ 4,904 0 4,904 ​ LTI 2020 – Tranche 2020 – MSU ​ 2/29/2020 ​ 4,904 ​ 0 ​ 4,904 0 4,904 ​ LTI 2020 – Tranche 2020 – RSU ​ 2/29/2020 ​ 4,904 ​ 0 ​ 4,904 0 4,904 ​ LTI 2016 – Tranche 2019 – PSU ​ 11/20/2019 ​ 3,826 ​ 0 ​ 3,826 0 3,826 Jennifer Morgan LTI 2016 – Tranche 2019 – PSU ​ 7/25/2019 ​ 2,781 ​ 0 ​ 2,781 0 2,781 (until 4/30/2020) LTI 2016 – Tranche 2019 – PSU ​ 2/20/2019 ​ 15,628 ​ 0 ​ 15,628 0 15,628 ​ LTI 2016 – Tranche 2019 – RSU ​ 11/20/2019 ​ 2,552 ​ 0 ​ 2,552 0 2,552 ​ LTI 2016 – Tranche 2019 – RSU ​ 7/25/2019 ​ 1,853 ​ 0 ​ 1,853 0 1,853 ​ LTI 2016 – Tranche 2019 – RSU ​ 2/20/2019 ​ 10,419 ​ 0 ​ 10,419 0 10,419 ​ LTI 2016 – Tranche 2018 – PSU ​ 2/21/2018 ​ 15,944 ​ -15,944 A 0 0 0 ​ LTI 2016 – Tranche 2018 – RSU ​ 2/21/2018 ​ 10,630 ​ -10,630 E 0 0 0 ​ LTI 2020 – Tranche 2020 – FSU ​ 2/29/2020 ​ 2,240 ​ 0 ​ 2,240 0 2,240 ​ LTI 2020 – Tranche 2020 – MSU ​ 2/29/2020 ​ 2,240 ​ 0 ​ 2,240 0 2,240 Stefan Ries LTI 2020 – Tranche 2020 – RSU ​ 2/29/2020 ​ 2,240 ​ 0 ​ 2,240 0 2,240 (until 5/31/2020) LTI 2016 – Tranche 2019 – PSU ​ 2/20/2019 ​ 13,165 ​ 0 ​ 13,165 0 13,165 ​ LTI 2016 – Tranche 2019 – RSU ​ 2/20/2019 ​ 8,776 ​ 0 ​ 8,776 0 8,776 ​ LTI 2016 – Tranche 2018 – PSU ​ 2/21/2018 ​ 13,431 ​ -13,431 A 0 0 0 ​ LTI 2016 – Tranche 2018 – RSU ​ 2/21/2018 ​ 8,954 ​ -8,954 E 0 0 0 Total ​ ​ ​ ​ ​ 372,667 ​ -149,666 ​ 223,001 0 223,001 ​ ​ 97 Table of Contents Executive Board: Other Information We did not grant any compensation advance or credit to, or enter into any commitment for the benefit of, any member of our Executive Board in 2022 or the previous year.
Compensation of Former Executive Board Members in 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ LTI 2020 Plan – LTI 2016 Plan – Total Performance ​ ​ € thousands ​ Severance ​ % of Total ​ Tranche 2020 ​ Tranche 2019 1 ​ Compensation ​ % of Total ​ Total Michael Kleinemeier (until 4/30/2020) ​ ​ 0 ​ 1,494.6 276.7 1,771.3 100.0 1,771.3 Jennifer Morgan (until 4/30/2020) ​ ​ 0 ​ 1,144.7 423.8 1,568.5 100.0 1,568.5 Luka Mucic (until 3/31/2023) 9,600.0 ​ 100.0 ​ ​ ​ 0 0 9,600.0 Stefan Ries (until 5/31/2020) ​ ​ 0 ​ 522.9 250.9 773.8 100.0 773.8 ​ 1 Individual amount resulting from the difference between the actual payout amount in 2023 and the theoretical payout amount as at December 31, 2022 ​ 96 Table of Contents LTI Holdings of Former Executive Board Members in 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 1/1/2023 During the Year 12/31/2023 ​ ​ ​ ​ Exercised (E)/ ​ ​ Thereof Subject ​ ​ ​ ​ ​ ​ ​ ​ Adjusted (A)/ ​ ​ ​ Thereof ​ to Holding Quantity of Share Units ​ Specification ​ Grant Date ​ Outstanding ​ Forfeited (F) ​ Outstanding ​ Unvested ​ Period Robert Enslin LTI 2016 – Tranche 2019 – PSU ​ 2/20/2019 ​ 15,893 ​ -15,893 A/E 0 0 0 (until 4/5/2019) LTI 2016 – Tranche 2019 – RSU ​ 2/20/2019 ​ 722 ​ -722 E 0 0 0 ​ LTI 2020 – Tranche 2020 – FSU ​ 2/29/2020 ​ 6,403 ​ -2,667 A 3,736 0 3,736 ​ LTI 2020 – Tranche 2020 – MSU ​ 2/29/2020 ​ 6,403 ​ -6,403 A 0 0 0 Michael Kleinemeier LTI 2020 – Tranche 2020 – RSU ​ 2/29/2020 ​ 6,403 ​ 0 ​ 6,403 0 6,403 (until 4/30/2020) LTI 2016 – Tranche 2019 – PSU ​ 2/20/2019 ​ 20,375 ​ -20,375 A/E 0 0 0 ​ LTI 2016 – Tranche 2019 – RSU ​ 2/20/2019 ​ 5,213 ​ -5,213 E 0 0 0 Bernd Leukert LTI 2016 – Tranche 2019 – PSU ​ 2/20/2019 ​ 20,335 ​ -20,335 A/E 0 ​ 0 ​ 0 (until 3/31/2019) LTI 2016 – Tranche 2019 – RSU ​ 2/20/2019 ​ 6,594 ​ -6,594 E 0 0 0 Bill McDermott LTI 2016 – Tranche 2019 – PSU ​ 2/20/2019 ​ 46,880 ​ -46,880 A/E 0 0 0 (until 11/15/2019) LTI 2016 – Tranche 2019 – RSU ​ 2/20/2019 ​ 7,348 ​ -7,348 E 0 0 0 ​ LTI 2020 – Tranche 2020 – FSU ​ 2/29/2020 ​ 4,904 ​ -2,043 A 2,861 0 2,861 ​ LTI 2020 – Tranche 2020 – MSU ​ 2/29/2020 ​ 4,904 ​ -4,904 A 0 0 0 ​ LTI 2020 – Tranche 2020 – RSU ​ 2/29/2020 ​ 4,904 ​ 0 ​ 4,904 0 4,904 ​ LTI 2016 – Tranche 2019 – PSU ​ 11/20/2019 ​ 3,826 ​ -3,826 A/E 0 0 0 Jennifer Morgan LTI 2016 – Tranche 2019 – PSU ​ 7/25/2019 ​ 2,781 ​ -2,781 A/E 0 0 0 (until 4/30/2020) LTI 2016 – Tranche 2019 – PSU ​ 2/20/2019 ​ 15,628 ​ -15,628 A/E 0 0 0 ​ LTI 2016 – Tranche 2019 – RSU ​ 11/20/2019 ​ 2,552 ​ -2,552 E 0 0 0 ​ LTI 2016 – Tranche 2019 – RSU ​ 7/25/2019 ​ 1,853 ​ -1,853 E 0 0 0 ​ LTI 2016 – Tranche 2019 – RSU ​ 2/20/2019 ​ 10,419 ​ -10,419 E 0 0 0 ​ LTI 2020 – Tranche 2020 – FSU ​ 2/29/2020 ​ 2,240 ​ -933 A 1,307 0 1,307 ​ LTI 2020 – Tranche 2020 – MSU ​ 2/29/2020 ​ 2,240 ​ -2,240 A 0 0 0 Stefan Ries LTI 2020 – Tranche 2020 – RSU ​ 2/29/2020 ​ 2,240 ​ 0 ​ 2,240 0 2,240 (until 5/31/2020) LTI 2016 – Tranche 2019 – PSU ​ 2/20/2019 ​ 13,165 ​ -13,165 A/E 0 0 0 ​ LTI 2016 – Tranche 2019 – RSU ​ 2/20/2019 ​ 8,776 ​ -8,776 E 0 0 0 Total ​ ​ ​ ​ ​ 223,001 ​ -201,550 ​ 21,451 0 21,451 ​ ​ 97 Table of Contents Executive Board: Other Information We did not grant any compensation advance or credit to, or enter into any commitment for the benefit of, any member of our Executive Board in 2023 or the previous year.
Gunnar Wiedenfels ​ 165.0 ​ 53.3 ​ 144.6 ​ 46.7 ​ 309.6 ​ 165.0 ​ 81.1 ​ 38.5 ​ 18.9 ​ 203.5 James Wright ​ 165.0 ​ 57.9 ​ 120.0 ​ 42.1 ​ 285.0 ​ 165.0 ​ 81.1 ​ 38.5 ​ 18.9 ​ 203.5 Ralf Zeiger (until 10/28/2021) ​ NA ​ NA ​ NA ​ NA ​ NA ​ 137.5 ​ 88.3 ​ 18.3 ​ 11.7 ​ 155.8 Total 3,148.8 ​ 2,057.7 ​ 5,206.4 3,176.3 ​ 679.7 ​ 3,856.0 ​ In 2022, 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 €1,855,000 (2021: €1,698,000). ​ 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 ​ 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.
Friederike Rotsch 1, 3, 4, 7, 8 50 Group General Counsel and Head of Group Legal & Compliance, Merck KGaA 2018 2024 Heike Steck 2, 5, 6, 8 61 Employee, Senior Operations Manager, Member of SAP SE Works Council and Member of SAP SE Works Council (Europe) 2019 2024 Helmut Stengele 14 ​ 64 ​ Employee, on early retirement ​ 2021 ​ 2024 Dr.
Friederike Rotsch 1, 3, 4, 7, 8 51 General Counsel, Deutsche Bank AG 2018 2024 Heike Steck 2, 3, 5, 6, 8 62 Employee, Senior Operations Manager, Member of SAP SE Works Council and Member of SAP SE Works Council (Europe) 2019 2024 Helmut Stengele ​ 65 ​ Employee, on early retirement ​ 2021 ​ 2024 Dr.
The STIs for the years 2018 to 2021 were already paid out.
The STIs for the years 2019 to 2022 were already paid out.
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. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2018 to 2017 2019 to 2018 2020 to 2019 2021 2021 to 2020 2022 2022 to 2021 ​ ​ Change in % ​ Change in % ​ Change in % ​ € thousands ​ Change in % ​ € thousands ​ Change in % ​ Current Executive Board Members ​ Christian Klein (CEO) (from 1/1/2018) NA 7 -40 5,870 425 4,674 -20 ​ Sabine Bendiek (from 1/1/2021) NA NA NA 4,054 NA 1,412 -65 ​ Luka Mucic (until 3/31/2023) 107 -36 -46 4,307 127 3,248 -25 ​ Juergen Mueller (from 1/1/2019) NA NA -56 2,922 307 3,210 10 ​ Scott Russell (from 2/1/2021) NA NA NA 2,234 NA 2,283 2 ​ Thomas Saueressig (from 11/1/2019) NA NA 162 2,920 307 1,731 -41 ​ Julia White (from 3/1/2021) NA NA NA 4,148 NA 2,280 -45 ​ Former Executive Board Members ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Werner Brandt (until 6/30/2014) 1 0 2 102 2 102 0 ​ Robert Enslin (until 4/5/2019) 62 -59 -70 446 -37 988 121 ​ Michael Kleinemeier (until 4/30/2020) 31 57 38 1,683 -65 1,617 -4 ​ Bernd Leukert (until 3/31/2019) 86 62 -59 1,804 -51 1,716 -5 ​ Bill McDermott (until 11/15/2019) 48 -10 -79 2,008 -27 3,315 65 ​ Jennifer Morgan (until 4/30/2020) 62 10 747 1,328 -92 2,610 97 ​ Gerhard Oswald (until 12/31/2016) -3 -82 -53 342 0 342 0 ​ Stefan Ries (until 5/31/2020) 3 61 230 1,880 -80 1,497 -20 ​ Earnings Indicators ​ ​ ​ ​ ​ ​ ​ ​ Total Revenue SAP Group (Non-IFRS) 5 12 -1 27,842 2 30,871 11 ​ Total Revenue SAP SE (German Commercial Code) 4 7 -4 15,370 5 17,786 16 ​ Operating Profit SAP Group (Non-IFRS) 6 15 1 8,230 -1 8,032 -2 ​ Net Income SAP SE (German Commercial Code) -32 -31 87 2,692 8 1,912 -29 ​ Average Annual Compensation of Employees SAP Group -8 21 -12 145 13 151 4 ​ ​ ​ 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 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.
She first joined SAP in March 2021 as member of the Executive Board. Julia is Chief Marketing and Solutions Officer and is responsible for global and regional marketing, corporate communications, and government affairs.
She first joined SAP in March 2021 as member of the Executive Board. Julia is Chief Marketing and Solutions Officer and is responsible for global and regional marketing, corporate communications, and government affairs. Before joining SAP, Julia was Corporate Vice President of Microsoft Corp., responsible for product marketing for Azure, Windows server and other cloud products.
Cloud revenue and total revenue have a cap of 110% and a hurdle of 90% target achievement, while operating income has a cap of 120% and a hurdle of 80% target achievement. 1 Based on non-IFRS metrics as defined for use in SAP’s 2021 full-year external financial reporting The following examples of the FSU calculation illustrate possible outcomes assuming 1,000 FSUs granted: ​ ​ ​ ​ ​ SAP financial performance is better than targets Total revenue performance factor ​ ​ 100% Cloud revenue performance factor ​ ​ 125% Operating income performance factor capped at ​ 150% Financial performance factor (100% + 125% + 150%) / 3 125% Final number of FSUs 125% x 1,000 1,250 ​ ​ ​ ​ ​ SAP financial performance does not meet the targets ​ ​ Total revenue performance factor below 50% ​ ​ 0% Cloud revenue performance factor ​ ​ 65% Operating income performance factor ​ 100% Financial performance factor (0% + 65% + 100%) / 3 55% Final number of FSUs 55% x 1,000 550 ​ ​ 79 Table of Contents Numerical Change in MSUs The number of MSUs initially awarded is multiplied by a performance factor.
The following examples of the FSU calculation illustrate possible outcomes assuming 1,000 FSUs granted: ​ ​ ​ ​ ​ SAP financial performance is better than targets Total revenue performance factor ​ ​ 100% Cloud revenue performance factor ​ ​ 125% Operating income performance factor capped at ​ 150% Financial performance factor (100% + 125% + 150%) / 3 125% Final number of FSUs 125% x 1,000 1,250 ​ ​ ​ ​ ​ SAP financial performance does not meet the targets ​ ​ Total revenue performance factor below 50% ​ ​ 0% Cloud revenue performance factor ​ ​ 65% Operating income performance factor ​ 100% Financial performance factor (0% + 65% + 100%) / 3 55% Final number of FSUs 55% x 1,000 550 ​ 78 Table of Contents Numerical Change in MSUs The number of MSUs initially awarded is multiplied by a performance factor.
Discovery Inc. 2019 2026 James Wright 2, 4, 5, 9 60 Employee, Chairman of the SE Works Council (Europe) 2019 2024 ​ 1 Elected by SAP SE’s shareholders on May 15, 2019. 2 Appointed by the SAP SE Works Council Europe on April 3, 2019. 3 Member of the Personnel and Governance Committee. 4 Member of the Audit and Compliance Committee. 5 Member of the Finance and Investment Committee. 6 Member of the Technology and Strategy Committee. 7 Member of the Nomination Committee. 8 Member of the People and Culture Committee. 9 Member of the Company's Go-To-Market and Operations Committee 10 Audit Committee financial experts. 11 Elected by SAP SE's shareholders on May 12, 2021. 12 Replacing Panagiotis Bissiritsas who resigned his seat on the Supervisory Board with effect as of July 7, 2021. 13 Replacing Christa Vergien-Knopf who resigned her seat on the Supervisory Board with effect as of August 9, 2021. 14 Replacing Ralf Zeiger who was removed from the Supervisory Board by Court order with effect as of October 28, 2021. 15 Elected by SAP SE’s shareholders on May 18, 2022.
Discovery Inc. 2019 2026 James Wright 2, 4, 5, 9 61 Employee, Member of the SE Works Council (Europe) 2019 2024 ​ 1 Elected by SAP SE’s shareholders on May 15, 2019. 2 Appointed by the SAP SE Works Council Europe on April 3, 2019. 3 Member of the Personnel and Governance Committee. 4 Member of the Audit and Compliance Committee. 5 Member of the Finance and Investment Committee. 6 Member of the Technology and Strategy Committee. 7 Member of the Nomination Committee. 8 Member of the People and Culture Committee. 9 Member of the Company's Go-To-Market and Operations Committee 10 Audit Committee financial experts. 11 Elected by SAP SE's shareholders on May 12, 2021. 12 Elected by SAP SE's shareholders on May 18, 2022. 13 Elected by SAP SE's shareholders on May 11, 2023.
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. This target compensation is benchmarked based on SAP’s global strategy, market position, business performance and future prospects of economy, and the compensation paid at comparable national and international companies.
This target compensation is benchmarked based on SAP’s global strategy, market position, business performance and future prospects of economy, and the compensation paid at comparable national and international companies.
Gesche Joost 165.0 70.2 70.0 29.8 235.0 165.0 88.2 22.0 11.8 187.0 Margret Klein-Magar (Deputy Chairperson until 12/31/2021) 165.0 57.9 120.0 42.1 285.0 220.0 85.1 38.5 14.9 258.5 Monika Kovachka-Dimitrova 165.0 61.1 105.0 38.9 270.0 165.0 86.9 24.8 13.1 189.8 Peter Lengler (from 8/10/2021) 165.0 57.9 120.0 42.1 285.0 68.8 85.8 11.5 14.3 80.2 Jennifer Xin-Zhe Li (from 5/18/2022) 110.0 60.8 70.8 39.2 180.8 NA NA NA NA NA Bernard Liautaud (until 5/18/2022) 68.8 70.3 29.2 29.8 97.9 165.0 86.1 26.6 13.9 191.6 Dr.
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.
The individual amount resulting from the difference between the actual payout amount of 47.7% and the theoretical payout amount of 55.9% is disclosed in the following tables under "LTI 2016 Plan - Tranche 2018" in 2022.
The individual amount resulting from the difference between the actual payout amount of 95.6% and the theoretical payout amount of 83.0% is disclosed in the following tables under "LTI 2016 Plan - Tranche 2019" in 2023.
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. ​ 95 Table of Contents 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 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.
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.
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.
Thomas Saueressig, 37 years old, holds a degree in Business Information Technology from the University of Cooperative Education in Mannheim, Germany, and a joint executive MBA from ESSEC, France, and Mannheim Business School, Germany. He joined SAP in 2004 and became a member of the Executive Board in 2019.
Before joining SAP, he was a Partner at PwC and a senior executive at IBM Corp. Thomas Saueressig, 38 years old, holds a degree in Business Information Technology from the University of Cooperative Education in Mannheim, Germany, and a joint executive MBA from ESSEC, France, and Mannheim Business School, Germany.
He joined SAP in 2013 and became a member of the Executive Board in 2019. Jürgen is Chief Technology Officer (CTO) of SAP and leads the board area Technology and Innovation. He is responsible for the technology and innovation strategy and for the SAP Business Technology Platform which includes data management, analytics and planning, integration, and application development capabilities.
He joined SAP in 2013 and became a member of the Executive Board in 2019. Jürgen is Chief Technology Officer (CTO) of SAP and leads the board area Technology and Innovation.
Both compensation systems were approved by the Annual General Meeting on May 20, 2020. The compensation report meets the requirements of section 162 of the German Stock Corporation Act (AktG). The compensation report for 2021 was approved by the Annual General Meeting on May 18, 2022.
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).
Before joining SAP, Julia was Corporate Vice President of Microsoft Corp., responsible for product marketing for Azure, Windows server and other cloud products. ​ 74 Table of Contents The members of the Executive Board of SAP SE as of December 31, 2022 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, 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.
Hasso Plattner, Chairperson 3, 6, 7, 9, 15 79 Chairman of the Supervisory Board 2003 2024 Lars Lamadé, Vice Chairperson 2, 3, 6, 9 ​ 51 ​ Employee, Head of Global Sponsorships ​ 2002 ​ 2024 Manuela Asche-Holstein 4, 8, 9, 12 58 Employee, Industry Advisor Expert and Member of SAP SE Works Council 2021 2024 Aicha Evans 1, 3, 6, 7, 8 54 Chief Executive Officer and Member of the Board of Directors, Zoox, Inc. 2017 2024 Prof.
Hasso Plattner, Chairperson 3, 6, 7,9 80 Chairman of the Supervisory Board 2003 2024 Lars Lamadé, Deputy Chairperson 2, 3, 6, 9 ​ 52 ​ Employee, Head of Global Sponsorships ​ 2002 ​ 2024 Manuela Asche-Holstein 4, 8, 9 59 Employee, Industry Advisor Expert 2021 2024 Aicha Evans 1, 3, 6, 7, 8 55 Chief Executive Officer and Member of the Board of Directors, Zoox, Inc. 2017 2024 Margret Klein-Magar 2, 3, 4, 6 59 Employee, Vice President, Head of SAP Alumni Relations 2012 2024 Monika Kovachka-Dimitrova 2, 3, 6, 8 48 Employee, Chief Operations Expert, Member of SAP SE Works Council (Europe) 2019 2024 Peter Lengler 4, 8, 9 61 Employee, Value Advisor Expert, Member of SAP Germany SE & Co.
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 Sabine Bendiek 2021 2023 Luka Mucic 2014 2023 Jürgen Müller 2019 2024 Scott Russell 2021 2024 Thomas Saueressig 2019 2025 Julia White 2021 2024 ​ A description of the management responsibilities and backgrounds of the current members of the Executive Board are as follows: Christian Klein, CEO (Vorstandssprecher), 42 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. 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.
Qi Lu 165.0 61.1 105.0 38.9 270.0 165.0 86.1 26.6 13.9 191.6 Gerhard Oswald 165.0 59.7 111.2 40.3 276.2 165.0 73.9 58.2 26.1 223.2 Christine Regitz ​ 165.0 ​ 59.2 ​ 113.5 ​ 40.8 ​ 278.5 ​ 165.0 ​ 79.3 ​ 43.1 ​ 20.7 ​ 208.1 Dr.
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.
This results for 2022 in an STI of €0.6 million and an LTI grant of €1.4 million (2021: STI of €0.4 million, LTI grant of €1.0 million, and replacement award of €1.5 million). These amounts are included in the table above in addition to the regular compensation.
This results for 2023 in an STI of €0.15 million and an LTI grant of €0.36 million (2022: STI of €0.6 million, LTI grant of €1.4 million, in 2021: STI of €0.4 million, LTI grant of €1.0 million, and replacement award of €1.5 million).
The outstanding difference will be granted as STI and LTI awards in 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Executive Board ​ ​ Contractual Compensation ​ Compensation Awarded and Due ​ ​ 2022 2022 ​ 2021 2021 ​ ​ ​ ​ € thousands ​ 2022 ​ (Min) ​ (Max) ​ 2021 ​ (Min) ​ (Max) ​ 2022 in % 2021 in % Fixed compensation 5,716.7 5,716.7 5,716.7 5,295.8 5,295.8 5,295.8 5,716.7 30.3 5,295.8 20.0 Fringe benefits 1 245.4 0 945.0 163.5 0 843.0 245.4 1.3 163.5 0.6 Exchange rate fluctuations (euro cap) 572.4 0 1,900.0 226.6 0 1,548.6 572.4 3.0 226.6 0.9 Replacement award 0 0 0 2,900.0 2,900.0 2,900.0 0 0 2,900.0 11.0 Total non-performance compensation 6,534.4 5,716.7 8,561.7 8,585.9 8,195.8 10,587.4 6,534.4 34.7 8,585.9 32.5 Supplementary compensation 0 0 0 0 0 0 0 0 3,200.0 12.1 One-year variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ STI 2021 0 0 0 9,169.8 0 12,837.7 0 0 12,223.4 46.2 STI 2022 9,839.7 0 13,775.5 0 0 0 6,021.9 32.0 0 0 Multiyear variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ LTI 2016 Plan – Tranche 2018 0 0 0 0 0 0 -358.6 -1.9 2,446.0 9.2 LTI 2016 Plan – Tranche 2019 0 0 0 0 0 0 6,640.4 35.2 0 0 LTI 2020 – Tranche 2021 0 0 0 21,369.9 0 56,986.6 0 0 0 0 LTI 2020 – Tranche 2022 21,957.4 0 58,553.1 0 0 0 0 0 0 0 Total performance compensation 31,797.1 0 72,328.7 30,539.7 0 69,824.3 12,303.7 65.3 17,869.4 67.5 Total 38,331.5 5,716.7 80,890.4 39,125.6 8,195.8 80,411.7 18,838.1 100.0 26,455.3 100.0 ​ 1 Insurance contributions, the private use of company cars and aircraft, payments and related supplements for relocation, benefits in kind, reimbursement of costs for preparation of tax returns, and tax gross-ups according to local conditions 2 The value of the fixed and one-year variable compensation is granted in Singapore dollars and in U.S. dollars. 3 The value of the fixed and one-year variable compensation is granted in U.S. dollars.
The amounts for 2023 and 2022 are included in the table above in addition to the regular compensation. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Executive Board ​ ​ Contractual Compensation ​ Compensation Awarded and Due ​ ​ 2023 2023 ​ 2022 2022 ​ ​ ​ ​ € thousands ​ 2023 ​ (Min) ​ (Max) ​ 2022 ​ (Min) ​ (Max) ​ 2023 in % 2022 in % Fixed compensation 5,892.6 5,892.6 5,892.6 5,716.7 5,716.7 5,716.7 5,892.6 21.0 5,716.7 30.3 Fringe benefits 1 274.9 0 1,298.4 245.4 0 945.0 274.9 1.0 245.4 1.3 Exchange rate fluctuations (euro cap) 342.8 0 1,900.0 572.4 0 1,900.0 342.8 1.2 572.4 3.0 Replacement award 1,600.0 1,600.0 1,600.0 0 0 0 1,600.0 5.7 0 0 Total non-performance compensation 8,110.3 7,492.6 10,690.9 6,534.4 5,716.7 8,561.7 8,110.3 28.9 6,534.4 34.7 One-year variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ STI 2022 0 0 0 9,839.7 0 13,775.5 0 0 6,021.9 32.0 STI 2023 10,010.2 0 14,014.3 0 0 0 11,521.8 41.1 0 0 Multiyear variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ LTI 2016 Plan – Tranche 2018 0 0 0 0 0 0 0 0 -358.6 -1.9 LTI 2016 Plan – Tranche 2019 0 0 0 0 0 0 1,003.1 3.6 6,640.4 35.2 LTI 2020 – Tranche 2020 ​ 0 ​ 0 ​ 0 ​ 0 ​ 0 ​ 0 ​ 7,413.5 26.4 0 0 LTI 2020 – Tranche 2022 0 0 0 21,957.4 0 58,553.1 0 0 0 0 LTI 2020 – Tranche 2023 21,330.0 0 56,879.9 0 0 0 0 0 0 0 Total performance compensation 31,340.2 0 70,894.3 31,797.1 0 72,328.7 19,938.4 71.1 12,303.7 65.3 Total 39,450.5 7,492.6 81,585.2 38,331.5 5,716.7 80,890.4 28,048.7 100.0 18,838.1 100.0 ​ 1 Insurance contributions, the private use of company cars and aircraft, payments and related supplements for relocation, benefits in kind, reimbursement of costs for preparation of tax returns, and tax gross-ups according to local conditions 2 The value of the fixed and one-year variable compensation is granted in U.S. dollars. ​ Share-Based Payment Information Relating to Long-Term Incentives Members of the Executive Board received, hold, or held Share Units issued to them under the LTI 2020 and hold or held Share Units issued to them under the LTI 2016 Plan.
We define headcount in FTE41 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.
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.
For detailed information on the Supervisory Board committees and their tasks, including the Audit and Compliance Committee and the Personnel and Governance Committee, please refer to “ Item 10 Additional Information — Corporate Governance. ” Pursuant to the Articles of Incorporation of SAP SE and the Agreement on the Involvement of Employees in SAP SE, members of the Supervisory Board of SAP SE consist of nine representatives of the shareholders and nine representatives of the European employees. ​ 73 Table of Contents 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, 2022 See Note (G.4) to our Consolidated Financial Statements for more detail.
For detailed information on the Supervisory Board committees and their tasks, including the Audit and Compliance Committee and the Personnel and Governance Committee, please refer to “ Item 10 Additional Information — Corporate Governance. ” Pursuant to the Articles of Incorporation of SAP SE and the Agreement on the Involvement of Employees in SAP SE, members of the Supervisory Board of SAP SE consist of nine representatives of the shareholders and nine representatives of the European employees.
The individual amount resulting from the difference between the exchange rate at year end and at payout will be disclosed in the following tables under "Exchange rate fluctuations" in 2022. ​ 86 Table of Contents Executive Board Members’ Compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Christian Klein ​ ​ ​ ​ CEO ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contractual Compensation ​ Compensation Awarded and Due ​ ​ 2022 2022 2021 2021 2021 ​ ​ ​ ​ € thousands ​ 2022 (Min) (Max) ​ ​ ​ (Min) ​ (Max) ​ 2022 in % 2021 in % Fixed compensation 1,100.0 1,100.0 1,100.0 1,100.0 1,100.0 1,100.0 ​ 1,100.0 23.5 1,100.0 18.7 Fringe benefits 1 13.5 0 220.0 18.6 0 220.0 13.5 0.3 18.6 0.3 Total non-performance compensation 1,113.5 1,100.0 1,320.0 1,118.6 1,100.0 1,320.0 1,113.5 23.8 1,118.6 19.1 Supplementary compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ 0 ​ 0 ​ ​ 0 1,100.0 18.7 One-year variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ STI 2021 ​ ​ ​ ​ ​ ​ ​ 1,900.0 ​ 0 ​ 2,660.0 ​ ​ 0 2,532.7 43.1 STI 2022 ​ 1,900.0 ​ 0 ​ 2,660.0 ​ ​ ​ ​ ​ ​ ​ 1,162.8 24.9 ​ 0 Multiyear variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ LTI 2016 Plan – Tranche 2018 ​ ​ ​ ​ ​ ​ ​ ​ -163.9 -3.5 1,118.4 19.1 LTI 2016 Plan – Tranche 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2,561.8 54.8 ​ 0 LTI 2020 – Tranche 2021 ​ ​ ​ ​ ​ ​ ​ 5,500.0 ​ 0 ​ 14,666.7 ​ ​ 0 ​ 0 LTI 2020 – Tranche 2022 ​ 5,500.0 ​ 0 ​ 14,666.7 ​ ​ ​ ​ ​ ​ ​ ​ 0 ​ 0 Total performance compensation 7,400.0 0 17,326.7 7,400.0 0 17,326.7 3,560.6 76.2 4,751.1 80.9 Total 8,513.5 1,100.0 18,646.7 8,518.6 1,100.0 18,646.7 4,674.1 100.0 5,869.7 100.0 ​ For the LTI 2016 Plan tranche 2018, the difference between the actual payout amount of €954.5 thousand and the theoretical payout amount of €1,118.4 thousand for Christian Klein is €163.9 thousand. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Sabine Bendiek ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Member of the Executive Board ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contractual Compensation ​ Compensation Awarded and Due ​ ​ ​ 2022 2022 ​ 2021 2021 ​ ​ ​ ​ € thousands ​ 2022 (Min) (Max) ​ 2021 ​ (Min) ​ (Max) ​ 2022 in % 2021 in % Fixed compensation 700.0 700.0 700.0 ​ 700.0 700.0 ​ 700.0 700.0 49.6 700.0 17.3 Fringe benefits 1 23.4 0 70.0 ​ 53.7 0 ​ 70.0 23.4 1.7 53.7 1.3 Replacement award ​ ​ ​ ​ ​ ​ ​ 1,400.0 ​ 1,400.0 ​ 1,400.0 ​ ​ 0 1,400.0 34.5 Total non-performance compensation 723.4 700.0 770.0 2,153.7 2,100.0 2,170.0 723.4 51.2 2,153.7 53.1 One-year variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ STI 2021 ​ ​ ​ ​ 1,425.8 ​ 0 ​ 1,996.1 ​ 0 1,900.5 46.9 STI 2022 ​ 1,125.8 ​ 0 ​ 1,576.1 ​ ​ ​ ​ ​ ​ ​ 689.0 48.8 ​ 0 Multiyear variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ LTI 2020 - Tranche 2021 ​ ​ ​ ​ 3,374.3 ​ 0 ​ 8,998.1 ​ 0 ​ 0 LTI 2020 - Tranche 2022 ​ 2,754.3 ​ 0 ​ 7,344.8 ​ ​ ​ ​ ​ ​ ​ ​ 0 ​ 0 Total performance compensation 3,880.1 0 8,920.9 4,800.1 0 10,994.3 689.0 48.8 1,900.5 46.9 Total 4,603.4 700.0 9,690.9 6,953.8 2,100.0 13,164.3 1,412.3 100.0 4,054.2 100.0 ​ ​ 87 Table of Contents With her appointment to the Executive Board, Sabine Bendiek received exceptional grants to compensate the loss of previously earned and forfeited compensation with her previous employer.
The individual amount resulting from the difference between the exchange rate at year end and at payout will be disclosed in the following tables under "Exchange rate fluctuations" in 2023. ​ 86 Table of Contents Executive Board Members’ Compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Christian Klein ​ ​ ​ ​ CEO ​ ​ Contractual Compensation ​ Compensation Awarded and Due ​ ​ 2023 2023 ​ 2022 2022 ​ ​ ​ ​ € thousands ​ 2023 (Min) (Max) ​ 2022 ​ (Min) ​ (Max) ​ 2023 in % 2022 in % Fixed compensation 1,100.0 1,100.0 1,100.0 1,100.0 1,100.0 1,100.0 ​ 1,100.0 15.4 1,100.0 23.5 Fringe benefits 1 21.7 0 220.0 13.5 0 220.0 21.7 0.3 13.5 0.3 Total non-performance compensation 1,121.7 1,100.0 1,320.0 1,113.5 1,100.0 1,320.0 1,121.7 15.7 1,113.5 23.8 One-year variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ STI 2022 ​ ​ ​ ​ ​ ​ ​ 1,900.0 ​ 0 ​ 2,660.0 ​ ​ 0 1,162.8 24.9 STI 2023 ​ 1,900.0 ​ 0 ​ 2,660.0 ​ ​ ​ ​ ​ ​ ​ 2,186.9 30.6 ​ 0 Multiyear variable compensation ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ LTI 2016 Plan – Tranche 2018 ​ ​ ​ ​ ​ ​ ​ ​ ​ 0 -163.9 -3.5 LTI 2016 Plan – Tranche 2019 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 386.9 5.4 2,561.8 54.8 LTI 2020 – Tranche 2020 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 3,462.6 48.4 ​ 0 LTI 2020 – Tranche 2022 ​ ​ ​ ​ ​ ​ ​ 5,500.0 ​ 0 ​ 14,666.7 ​ ​ 0 ​ 0 LTI 2020 – Tranche 2023 ​ 5,500.0 ​ 0 ​ 14,666.7 ​ ​ ​ ​ ​ ​ ​ ​ 0 ​ 0 Total performance compensation 7,400.0 0 17,326.7 7,400.0 0 17,326.7 6,036.4 84.3 3,560.6 76.2 Total 8,521.7 1,100.0 18,646.7 8,513.5 1,100.0 18,646.7 7,158.1 100.0 4,674.1 100.0 ​ For the LTI 2016 Plan tranche 2019, the difference between the actual payout amount of €2,948.7 thousand and the theoretical payout amount of €2,561.8 thousand for Christian Klein is €386.9 thousand. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dominik Asam ​ ​ Member of the Executive Board (from 3/7/2023) € thousands ​ Contractual Compensation ​ Compensation Awarded and Due ​ 2023 ​ 2023 ​ 2023 ​ 2022 ​ 2022 ​ 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ (Min) ​ (Max) ​ ​ ​ (Min) ​ (Max) ​ 2023 in % 2022 in % Fixed compensation ​ 655.1 655.1 655.1 655.1 16.6 0 Fringe benefits 1 57.5 0 65.5 57.5 1.5 0 Replacement award 1,600.0 1,600.0 1,600.0 1,600.0 40.6 0 Total non-performance compensation 2,312.5 2,255.1 2,320.6 0 0 0 2,312.5 58.7 0 0 One-year variable compensation STI 2023 1,416.3 0 1,982.8 1,630.2 41.3 0 Multiyear variable compensation LTI 2020 – Tranche 2023 2,654.8 0 7,079.5 0 0 Total performance compensation 4,071.1 0 9,062.3 0 0 0 1,630.2 41.3 0 0 Total 6,383.6 2,255.1 11,382.9 0 0 0 3,942.7 100.0 0 0 ​ 87 Table of Contents With his appointment to the Executive Board, Dominik Asam received exceptional grants to compensate the loss of previously earned and forfeited compensation with his previous employer.
Qi Lu 6, 8, 9, 11 61 CEO, MiraclePlus 2020 2023 Gerhard Oswald 1, 3, 6, 9 ​ 69 ​ Managing Director of Oswald Consulting GmbH ​ 2019 ​ 2024 Christine Regitz 2, 3, 5, 6 56 Employee, Vice President User Experience, Chief Product Expert 2015 2024 Dr.
Qi Lu 6, 8, 9, 11 62 CEO, MiraclePlus 2020 2027 Gerhard Oswald 1, 6, 8 ​ 70 ​ Managing Director of Oswald Consulting GmbH ​ 2019 ​ 2024 Christine Regitz 2, 3, 5, 6 57 Employee, Vice President, Global Head of SAP Women in Tech 2015 2024 Dr. h. c.
Thomas leads the Board area SAP Product Engineering and has global responsibility for all SAP business software applications, cloud operations and support, cross-development functions as well as the SAP enterprise adoption organization. Julia White, 49 years old, holds a master of business administration from Harvard Business School, Boston, USA.
He joined SAP in 2004 and became a member of the Executive Board in 2019. Thomas leads the Board area SAP Product Engineering and has global responsibility for all SAP business software applications, cloud operations and support, cross-development functions as well as the SAP enterprise adoption organization and Emarsys.
Sabine is Chief People & Operating Officer with global responsibility for Human Resources including HR strategy, business transformation, leadership development, and talent development. She also serves as Labor Relations Director. Before joining SAP, Sabine was Managing Director of Microsoft Germany.
Gina is Chief People Officer with global responsibility for Human Resources including HR strategy, business transformation, leadership development, and talent development. She also serves as Labor Relations Director. Before joining SAP, Gina was Senior Vice President Global Human Resources at Siemens Energy. Julia White, 50 years old, holds a master of business administration from Harvard Business School, Boston, USA.
Gesche Joost 0 0 0 187 0 235 26 ​ Margret Klein-Magar (Deputy Chairperson until 12/31/2021) -2 2 0 259 4 285 10 ​ Monika Kovachka-Dimitrova (from 5/15/2019) NA NA 50 190 1 270 42 ​ Peter Lengler (from 8/10/2021) NA NA NA 80 NA 285 255 ​ Jennifer Xin-Zhe Li (from 5/18/2022) NA NA NA NA NA 181 NA ​ Dr.
Hasso Plattner (Chairperson) -10 4 1 439 27 430 -2 ​ Lars Lamadé (Deputy Chairperson (from 1/1/2022) 0 0 6 325 64 325 0 ​ Manuela Asche-Holstein (from 7/8/2021) NA NA NA 256 200 285 11 ​ Aicha Evans (from 7/1/2017) 2 0 6 320 52 320 0 ​ Margret Klein-Magar (Deputy Chairperson until 12/31/2021) 2 0 4 285 10 285 0 ​ Monika Kovachka-Dimitrova (from 5/15/2019) NA 50 1 270 42 270 0 ​ Peter Lengler (from 8/10/2021) NA NA NA 285 255 285 0 ​ Jennifer Xin-Zhe Li (from 5/18/2022) NA NA NA 181 NA 295 63 ​ Dr.
Decisions for 2022 No corrections were made to the payout amounts for the STI 2021 or LTI 2016 Plan tranche 2018 paid in May 2022.
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).
The proportion of total target compensation consisting of fixed compensation, the STI, and the LTI (without fringe benefits and retirement pension) must be within the following ranges: – Fixed compensation: 10% to 20% – STI: 20% to 30% – LTI: 50% to 70% 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, 2025). 2 As defined in the individual Executive Board members’ contracts. 3 For the definition, see the Early End-of-Service Undertakings section. ​ 82 Table of Contents Maximum compensation is the maximum amount which may be paid to an Executive Board member in total for a financial year.
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.
The compensation awarded and due related to the LTI 2016 Plan tranche 2019 is disclosed with the share price at year end and the performance factor of the PSUs at year end. The payout of this tranche in May 2023 will be calculated based on the performance period according to the plan terms.
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.
This also applies to the increased compensation of the chairperson and the deputy chairperson(s) and to the remuneration for the chairperson, any possible deputy chairperson, and the members of a committee. ​ Supervisory Board Members’ Compensation in 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ € thousands ​ 2022 ​ 2021 ​ ​ Fixed ​ ​ ​ Compensation for ​ ​ ​ Total ​ Fixed ​ ​ ​ Compensation for ​ ​ ​ Total ​ ​ Compensation ​ % of Total ​ Committee Work ​ % of Total ​ ​ ​ Compensation ​ % of Total ​ Committee Work ​ % of Total ​ ​ Prof.
This also applies to the increased compensation for the chairperson and the deputy chairperson(s) and to the compensation for the chairperson, any possible deputy chairperson, the members of a committee, and to the additional compensation for the Lead Independent Director.
Hasso Plattner (Chairperson) 275.0 62.6 164.2 37.4 439.2 275.0 79.6 70.6 20.4 345.6 Lars Lamadé (Deputy Chairperson from 1/1/2022) 220.0 67.7 105.0 32.3 325.0 165.0 83.3 33.0 16.7 198.0 Pekka Ala-Pietilä (until 5/12/2021) NA NA NA NA NA 68.8 83.4 13.8 16.7 82.5 Manuela Asche-Holstein (from 7/8/2021) 165.0 64.5 90.8 35.5 255.8 82.5 96.7 2.8 3.3 85.3 Panagiotis Bissiritsas (until 7/7/2021) NA NA NA NA NA 82.5 83.8 16.0 16.2 98.5 Aicha Evans 165.0 51.6 155.0 48.4 320.0 165.0 78.3 45.8 21.7 210.8 Prof.
Hasso Plattner (Chairperson) 275.0 64.0 155.0 36.0 430.0 275.0 62.6 164.2 37.4 439.2 Lars Lamadé (Deputy Chairperson) 220.0 67.7 105.0 32.3 325.0 220.0 67.7 105.0 32.3 325.0 Manuela Asche-Holstein 165.0 ​ 57.9 ​ 120.0 ​ 42.1 ​ 285.0 ​ 165.0 ​ 64.5 ​ 90.8 ​ 35.5 ​ 255.8 Aicha Evans 165.0 51.6 155.0 48.4 320.0 165.0 ​ 51.6 ​ 155.0 ​ 48.4 ​ 320.0 Prof.
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. Such contractually agreed claim to repayment supplements the claim for restitution of unjustified enrichment pursuant to section 812 of the German Civil Code (BGB).
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.
Share Ownership Beneficial Ownership of Shares The ordinary shares beneficially owned by the persons listed in " Item 6. Directors, Senior Management and Employees — Compensation Report ” are disclosed in “ Item 7. Major Shareholders and Related-Party Transactions — Major Shareholders .” ​ 101 Table of Contents Share-Based Compensation Plans Share- Based Compensation We maintain certain share-based compensation plans.
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.
Net Present Values of the Postcontractual Non-Compete Abstention Payments ​ ​ ​ ​ ​ ​ ​ € thousands Contract Term Expires Discount Rate (in %) Net Present Value Christian Klein (CEO) 4/30/2025 3.71 2,153.2 Sabine Bendiek 12/31/2023 3.54 682.0 Juergen Mueller 12/31/2024 3.68 1,493.1 Scott Russell 1/31/2024 3.56 1,098.9 Thomas Saueressig 10/31/2025 3.75 779.6 Julia White 2/29/2024 3.56 1,097.8 Total ​ ​ ​ 7,304.6 ​ Early End-of-Service Undertakings Severance Payments The contracts for all Executive Board members provide that on termination before full term (for example, by the Company without cause where the member’s appointment is revoked, where the member becomes occupationally disabled, or in connection with a change of control), SAP SE will pay to the member the outstanding part of the compensation target for the entire remainder of the term, appropriately discounted for early payment.
Early End-of-Service Undertakings Severance Payments The contracts for all Executive Board members provide that on termination before full term (for example, by the Company without cause where the member’s appointment is revoked, where the member becomes occupationally disabled, or in connection with a change of control), SAP SE will pay to the member the outstanding part of the compensation target for the entire remainder of the term, appropriately discounted for early payment.
Prior to being named to the Executive Board, Scott most recently served as President of SAP Asia Pacific Japan (APJ). Before joining SAP, he was a Partner at PwC and a senior executive at IBM Corp.
He joined SAP in 2010 and became a member of the Executive Board in 2021. He leads Customer Success, SAP’s global commercial, partner ecosystem and customer engagement organization as well as working capital management. Prior to being named to the Executive Board, Scott most recently served as President of SAP Asia Pacific Japan (APJ).

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Item 7. Management's Discussion & Analysis

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

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Biggest changeTHE 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.
Biggest changeFor 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.
Objects and Purposes SAP’s Articles of Incorporation state that our objects involve, directly or indirectly, the development, production and marketing of products and the provision of services in the field of information technology and telecommunication, particularly in the following fields: - developing and marketing integrated product and service solutions for e-commerce; - developing software and cloud solutions and the licensing of their use to others; - organization and deployment consulting, as well as user training, for software and cloud solutions; - selling, leasing, renting and arranging the procurement and provision of all other forms of use of information technology systems and relevant accessories; - making capital investments in enterprises active within the scope of the corporate purpose to promote the opening and advancement of international markets in these fields.
Objects and Purposes SAP’s Articles of Incorporation state that our objects involve, directly or indirectly, the development, production and marketing of products and the provision of services in the field of information technology and telecommunication, particularly in the following fields: - developing and marketing integrated product and service solutions for e-commerce; - developing software and cloud solutions and the licensing of their use to others; - organization and deployment consulting, as well as user training, for software and cloud solutions; - selling, leasing, renting and arranging the procurement and provision of all other forms of use of information technology systems and relevant accessories; and - making capital investments in enterprises active within the scope of the corporate purpose to promote the opening and advancement of international markets in these fields.
The following table sets forth certain information regarding the beneficial ownership of the ordinary shares to the extent known to SAP as of February 10, 2023 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 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 foregoing information is based on a Schedule 13G filed by BlackRock, Inc. on February 1, 2023. ​ Currently we are not aware of any arrangements, the operation of which may, at a subsequent date, result in a change in control of the company.
The foregoing information is based on a Schedule 13G filed by BlackRock, Inc. on February 2, 2024. ​ Currently we are not aware of any arrangements, the operation of which may, at a subsequent date, result in a change in control of the company.
Related-Party Transactions For information on related-party transactions see Note (G.6) to our Consolidated Financial Statements. 102 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-113.
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.
BlackRock, Inc. is not required to provide SAP with the number of shares owned as of February 10, 2023, and has not provided such information.
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.
This number does not include the 42,228,940 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 10, 2023. 4 As required under German law, BlackRock, Inc. informed SAP that they own more than 5% of SAP's outstanding ordinary shares.
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.
Each ADR currently represents one SAP SE ordinary share. On February 10, 2023, based on information provided by the Depositary there were 61,700,511 ADRs held of record by 686 registered holders. The ordinary shares underlying such ADRs represented 5.02% of the then-outstanding ordinary shares (including treasury stock).
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).
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.
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.
None 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 38,876,048 ​ 3.165 Executive Board Members as a group (7 persons) 40,463 ​ 0.003 Supervisory Board Members as a group (18 persons) 38,913,331 ​ 3.168 Executive Board Members and Supervisory Board Members as a group (25 persons) 3 38,953,704 ​ 3.171 BlackRock, Inc. 4 72,977,546 ​ 5.9 ​ 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 Includes Hasso Plattner Single Asset KG in which Hasso Plattner exercises voting and dispositive power.
None 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.
Oktober 2001 über das Statut der Europäischen Gesellschaft (SE) – SE-Ausführungsgesetz; “SE-AG”) of December 22, 2004, and the German Stock Corporation Act (Aktiengesetz). SAP SE is registered in the Commercial Register (Handelsregister) at the Lower Court of Mannheim, Germany, under the entry number “HRB 719915.” SAP SE publishes its official notices in the Company Register ( www.unternehmensregister.de ).
ADDITIONAL INFORMATION Articles of Incorporation Organization and Register SAP SE is a European Company (Societas Europaea, or “SE”) duly established under the laws of Germany and the European Union, registered in the Commercial Register (Handelsregister) at the Lower Court of Mannheim, Germany, under the entry number “HRB 719915.” SAP SE publishes its official notices in the Company Register ( www.unternehmensregister.de ) and Federal Gazette (www.bundesanzeiger.de).
Dividend Policy For more information on dividend policy see the disclosure in “ Item 3. Key Information — Dividends ”. Significant Changes Targeted Restructuring Program In January 2023, SAP announced that it intends to conduct a targeted restructuring program in selected areas of the company.
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.
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The purpose is to further focus on strategic growth areas by aligning our operating models and go-to-market approach with our accelerated cloud transformation and to strengthen its core business and improve overall process efficiency. The program is expected to affect approximately 2.5% of SAP’s employees.
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KG in which Hasso Plattner exercises voting and dispositive power.
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The vast majority of the €250 million to €300 million restructuring costs associated with the program is expected to be recognized in the first quarter 2023, impacting IFRS operating profit.
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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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SAP to Explore a Sale of its Stake in Qualtrics In line with SAP’s strategic initiative to streamline its portfolio, SAP has decided to explore a sale of its stake in Qualtrics. In the event of a successful transaction, SAP intends to remain a go-to-market and technology partner, servicing its joint customers and contributing to its growth and category leadership.
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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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SAP is currently evaluating the accounting treatment and a potential recognition of Qualtrics as a discontinued operation according to IFRS 5. A final decision on any transaction, its conditions, and timing is subject to market conditions, agreement on acceptable terms, regulatory approvals, and the approval of the SAP SE Supervisory Board.
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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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Organizational Changes At the beginning of 2023, SAP modified its organizational structure to further drive simplification and integration. The organizational changes might also affect SAP’s segment reporting. Supervisory Board Proposes Punit Renjen as Designated Successor to Chairman Hasso Plattner On February 22, 2023, the Supervisory Board nominated Mr.
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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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Punit Renjen to stand for election as a new member of the Supervisory Board and proposed that Mr. Renjen serve as the designated successor to Chairman, Prof. Dr. Hasso Plattner. With this decision, Prof. Dr. Plattner and the Supervisory Board began the succession process. The shareholders will vote on Mr.
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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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Renjen’s candidacy for the SAP Supervisory Board at the Annual General Meeting scheduled for May 11, 2023. Upon election to the SAP Supervisory Board, the handover process by Prof. Dr. Hasso Plattner to Punit Renjen would begin. Prof. Dr. Plattner’s term expires in May 2024. ​ 103 Table of Contents ITEM 9.
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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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ADDITIONAL INFORMATION Articles of Incorporation Organization and Register SAP SE is a European Company (Societas Europaea, or “SE”) organized in the Federal Republic of Germany under German and European law, including Council Regulation (EC) No. 2157/2001 on the Statute for a European Company (the “SE Regulation”), the German Act on the Implementation of Council Regulation No. 2157/2001 of October 8, 2001 on the Statute for a European Company (Gesetz zur Ausführung der Verordnung (EG) Nr. 2157/2001 des Rates vom 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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