1、SAP Half-Year Report 2024 1/51 SAP Half-Year Report 2024 SAP Half-Year Report 2024 2/51 Table of Contents Introductory Notes 3 Consolidated Half-Year Management Report 4 Consolidated Half-Year Financial Statements IFRS 19 Supplementary Financial Information 42 General Information 48 Additional Infor

2、mation 49 SAP Half-Year Report 2024 3/51 Introductory Notes This Half-Year Group Report meets the requirements of German Accounting Standard No.16“Half-yearly Financial Reporting”(GAS 16).We prepared the financial data in the Half-Year Report section for SAP SE and its subsidiaries in accordance wit

3、h International Financial Reporting Standards(IFRS).In doing so,we observed the IFRS both as issued by the International Accounting Standards Board(IASB)and as endorsed by the European Union(EU).This does not apply to numbers expressly identified as non-IFRS.For additional IFRS and non-IFRS informat

4、ion,see the Supplementary Financial Information section.This Half-Year Group Report complies with the legal requirements in accordance with the German Securities Trading Act(Wertpapierhandelsgesetz,WpHG)for a half-year financial report,and comprises the consolidated Half-Year Management Report,conde

5、nsed consolidated Half-Year Financial Statements,and the responsibility statement in accordance with the German Securities Trading Act,section 115(2).This Half-Year Group Report updates our consolidated Financial Statements 2023,presents significant events and transactions of the first half of 2024,

6、and updates the forward-looking information as well as significant non-financial key figures contained in our Management Report 2023.This Half-Year Financial Report only includes half-year numbers.Our quarterly numbers are available in the Quarterly Statements for the first and second quarter 2024.B

7、oth the 2023 Consolidated Financial Statements and the 2023 Management Report are part of our Integrated Report 2023,which is available at .All of the information in this Half-Year Group Report is unaudited.This means that the information has been subject neither to any audit nor to any review by an

8、 independent auditor.Unless otherwise stated,all figures in this Half-Year Report are based on SAP Group results from continuing operations.SAP Half-Year Report 2024 4/51 Consolidated Half-Year Management Report Strategy and Business Model SAP continues to execute on the strategy and business model

9、as described in the SAP Integrated Report 2023 to become the#1 enterprise application and business AI company.Our Product Strategy SAPs product portfolio allows enterprises to manage their resources,spend,employees,and customer relationships.For more information about SAPs product strategy and produ

10、ct portfolio,see the Our Product Strategy section in our Management Report 2023.Substantial updates to SAPs product strategy and portfolio for the first half of 2024 are as follows:SAP Business AI SAPs goal is to deliver artificial intelligence(AI)solutions that are relevant,reliable,and responsible

11、.More than 27,000 customers already use SAP Business AI.SAP Business AI solutions are embedded in systems that power critical business processes,with the context of industry-specific data and deep process knowledge,and they are built on ethical AI practices.With Joule,SAPs generative AI(GenAI)copilo

12、t,users can work with the system in natural language,transforming the user experience.Besides embedding AI scenarios in its solutions,SAP also provides access to frontier AI models through the generative AI hub capability in SAP AI Core on SAP Business Technology Platform(SAP BTP),allowing customers

13、 and partners to build their own AI use cases and extend embedded GenAI use cases while relying on deep business process integration and secure data access.In March 2024,we announced a partnership with NVIDIA focused on accelerating GenAI adoption across enterprise applications powering global indus

14、tries.Meanwhile,as announced at our SAP Sapphire event in 2024,the partnership has already created new capabilities for Joule.This includes AI-assisted coding of application extensions for SAP systems and expert consulting guidance for SAP system deployment.In May 2024,SAP and IBM announced an exten

15、sion of their partnership focused on helping to deliver greater client productivity and innovation with new GenAI capabilities and industry-specific cloud solutions.In the same month,SAP and Amazon Web Services(AWS)announced an expanded partnership focused on unlocking innovation with GenAI and on h

16、elping SAP customers modernize key business processes built on SAP solutions by integrating models from Amazon Bedrock into the generative AI hub in SAP AI Core.At our SAP Sapphire event in 2024,we also announced additional SAP Business AI innovations and collaborations with partners including Accen

17、ture,Boston Consulting Group,Google Cloud,Meta,McKinsey&Company,Microsoft,and Mistral AI.Examples of SAPs AI innovations include embedding Joule throughout our enterprise portfolio,integrating Joule with Microsoft Copilot,combining Joule with Googles Gemini AI assistant in integrated business planni

18、ng,and new generative AI use cases across our solutions in ERP and finance,human resources,sourcing and procurement,supply chain management,customer experience,and IT and platform.Cloud ERP In January 2024,SAP announced the RISE with SAP Migration and Modernization program,a set of resources,service

19、s,and financial incentives to help customers move to the cloud and maintain the pace and level of innovation that cloud enables.Joule,our natural-language,GenAI copilot built directly into SAP S/4HANA Cloud Public Edition in an SAP Early Adopter Care program,was released in February 2024.It aims to

20、transform the way customers interact with the system and to improve business process efficiency and user experience.SAP Half-Year Report 2024 5/51 At SAP Sapphire in 2024,we announced the next evolution in our RISE with SAP and GROW with SAP solutions and related add-on packages:RISE with SAP includ

21、es add-on packages targeted to finance and supply-chain buying centers;GROW with SAP premium subscription now includes SAP Sales Cloud capabilities and Concur Expense solutions at no additional charge.Additionally,tailored add-on packages for advanced finance and HR management are available for cust

22、omers to easily expand their solutions as needed.Human Capital Management In May 2024,we released new AI capabilities throughout SAP SuccessFactors solutions,such as additional capabilities for learning,goals,compensation,and more.Customer Experience In the first half of 2024,our SAP Customer Experi

23、ence organizational unit released the SAP CX AI Toolkit,a new set of business AI capabilities that can be used to generate relevant,personalized content that meets specific customer experience business needs.SAP Business Technology Platform At SAP Sapphire in 2024,SAP announced new tools for SAP Bui

24、ld solutions in the low-code and pro-code area and new features for the ABAP Cloud development model,enabling software developers to write ABAP code with GenAI,further driving its clean-core strategy.In addition,Joule powers the SAP Build Code development tools,enabling customers to create SAP Fiori

25、 front ends for their SAP S/4HANA Cloud systems faster using GenAI,thus simplifying SAP S/4HANA Cloud extensions.Business Process Transformation In May 2024,we launched the SAP Signavio Process Transformation Manager solution as an integrated toolkit to manage process transformation holistically,and

26、 the value accelerator library for SAP Signavio solutions,aone-stop library of self-installable value accelerators combining ready-to-useexpertise gathered fromsuccessfully delivered projects.At SAP Sapphire in 2024,we announced the beta availability of GenAI capabilities embedded into SAP Signavio

27、solutions:Process&KPI Recommender for pre-configured process models based on SAP best practices,and Text-to-Process,an AI-assisted process model creation.Working Capital Management In March 2024,Taulia announced a partnership with Visa to make embedded finance solutions accessible to businesses worl

28、dwide through Taulia Virtual Cards.This partnership is in addition to the already existing Mastercard partnership.Taulia Virtual Cards integrates with SAP ERP and other business applications for a seamless and streamlined payment experience for buyers and suppliers.Sustainability Management At SAP S

29、apphire in 2024,we introduced SAPs carbon calculator engine,available within our SAP Sustainability Control Tower and SAP Sustainability Footprint Management solutions,that helps customers get granular,accurate,and auditable emissions data covering all scopes of required reporting on emissions.Servi

30、ces and Support At SAP Sapphire in 2024,we announced a new certification program for IT professionals responsible for SAP S/4HANA Cloud implementations,which is now available on SAP Learning Hub.Also at our SAP Sapphire event in 2024,we announced new editions of our SAP Preferred Success plan.These

31、editions are designed to deliver expanded capabilities for specific groups of solutions and to provide a personalized partnership for the lifetime of a customers cloud solution.SAP Half-Year Report 2024 6/51 Our Investments in Innovation Investment in R&D SAPs strong commitment to research and devel

32、opment(R&D)is reflected in our expenditures.In the first half of 2024,our R&D(IFRS)expenses increased 4%to 3,270 million(first half of 2023:3,138 million).Our IFRS R&D ratio,reflecting R&D expenses as a portion of total revenue,decreased one percentage point(pp)to 20%(first half of 2023:21%)year ove

33、r year.Similarly,our non-IFRS R&D ratio decreased 1pp to 20%(first half of 2023:21%).At the end of the first half of 2024,our total full-time equivalent(FTE)headcount in development was 35,844(first half of 2023:36,100).Measured in FTEs,our R&D headcount remained unchanged at 34%of total headcount.T

34、otal R&D expense includes not only 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.We also incur external costs for the following:Translation,localization,and testing of products Cer

35、tification of products in different markets Patent attorney services and fees Consulting related to our product strategy Professional development of our R&D workforce Competitive Intangibles The majority of(intangible)resources underlying our current and future success does not appear in the book va

36、lue of equity in our Consolidated Financial Statements.This is apparent from a comparison of the market capitalization of SAP SE(based on all issued shares),which was 232.8 billion at the end of the first half of 2024(2023:171.4 billion),with the book value of our equity in the Consolidated Financia

37、l Statements,which was 41.9 billion(2023:43.4 billion).Hence,the market capitalization of our equity is more than five times higher than the book value.Acquisitions and Divestitures On June 5,2024,SAP announced its intent to acquire 100%of WalkMe Ltd.(“WalkMe”),a leader in digital adoption platforms

38、(DAPs).The acquisition is subject to customary closing conditions,including the receipt of WalkMe shareholder approval and necessary regulatory clearances,and is expected to close in the third quarter of 2024.The envisioned combination complements SAPs Business Transformation Management portfolio of

39、 SAP Signavio and SAP LeanIX solutions to help customers on their transformation journeys.The Executive Board and Supervisory Board of SAP SE and the board of directors of WalkMe approved the transaction for US$14.00 per share in an all-cash transaction,representing an equity value of approximately

40、US$1.5 billion.The offer price represents a 45%premium over WalkMes closing share price on June 4,2024.Performance Management System SAP uses various performance measures to manage our performance with regard to our primary financial objectives,which are growth and profitability,and our primary non-

41、financial objectives,which are customer loyalty,employee engagement,Net Zero climate performance,and women in executive roles.For a more detailed description of SAPs performance measures,the usefulness and limitations of our non-IFRS measures,and information about constant currency calculation,see S

42、AP Performance Measures which is available on our Web site.SAP Half-Year Report 2024 7/51 Change in Non-IFRS Expense Measures In recent years,SAP has replaced many of its cash-settled share-based compensation plans with equity-settled plans.Having most of these plans as equity-settled reduces the im

43、pact of share price fluctuations and of other factors outside of our control.For these reasons,SAP has decided that,starting 2024,it will no longer exclude share-based payment expenses from its operating profit(non-IFRS).Effective 2024,numbers that are identified as financial income,net(non IFRS)are

44、 adjusted by excluding gains and losses from equity securities,net.This includes realized and unrealized effects from the disposal of equity securities,ongoing mark-to-market adjustments on marketable equity investments,changes in fair value of non-marketable equity securities,and others.Excluding g

45、ains and losses from equity securities,net,improves the period-over-period comparability,because there is less volatility caused by share price fluctuation,market developments,and other factors beyond our control.Change in Non-Financial Measures In 2023,SAP achieved carbon neutrality in its own oper

46、ations.As part of our Net Zero by 2030 commitment,we discontinued the non-financial measure Net Carbon Emissions in 2024 and replaced it with Gross Greenhouse Gas Emissions.This new non-financial measure is used to measure greenhouse gas emissions along the value chain(scope 1,scope 2,and scope 3 em

47、issions relevant for SAPs business model).We apply a market-based approach.Renewable energies,for example in the form of self-generated renewable electricity,investments in certified renewable energy certificates,long-term green electricity contracts(power purchase agreements),or renewable electrici

48、ty purchased by our suppliers and customers can be counted toward the reduction of greenhouse gas emissions.We define,measure,and report our greenhouse gas emissions according to the Greenhouse Gas Protocol(in million tons of CO2 equivalents).Effective 2024,we introduced the Women in Executive Roles

49、(WiER)KPI to measure the ratio of women to all genders in the three executive levels below the SAP Executive Board,namely the Global Executive Team,the Senior Executive Team,and the Executive Team,to promote gender equality in the workplace and gender balance across the organization.Our priority,wit

50、h the help of this KPI,is to monitor how the Company is progressing on this commitment.Financial Performance Review and Analysis Economy and the Market Global Economic Trends In the first half of 2024,global economic activity improved gradually amid remaining headwinds,summarizes the European Centra

51、l Bank(ECB)in its most recent Economic Bulletin.1 The ECB places particular emphasis on the recovery of imports in emerging markets and major advanced economies.Furthermore,the ECB highlights a positive surprise in the euro area at the start of the year:The euro area economy picked up in the first h

52、alf of 2024,largely due to a broad-based improvement in the services sector and a positive contribution from net trade and domestic demand.Manufacturing showed slight signs of stabilization as well,though still affected by weak demand particularly in energy-intensive sectors.However,exports to some

53、key trading partners such as central and eastern European countries weakened.The United States showed robust economic activity at the beginning of 2024,although inflation persisted,growth in real disposable income slowed,and the savings rate fell further.However,domestic demand remained solid due to

54、 a strong labor market and imports picked up,thus contributing to a trade recovery.As for China,the ECB finds that economic growth in the first quarters of 2024 turned out stronger than expected.Domestic demand remained weak,but high growth resumed in industrial production and SAP Half-Year Report 2

55、024 8/51 investment improved steadily.This reflected rising public investment from fiscal stimulus carried over from a budget revision in late 2023.The IT Market“Organizations are now realizing the benefits of the cloud,particularly when it comes to new innovation and its ability to bring the innova

56、tion faster,without necessarily disrupting the technology core with customized software,”2 says International Data Corporation(IDC),a U.S.-based market research firm.Furthermore,“innovation such as traditional AI,machine learning,and generative AI(GenAI)can quickly be embedded into the workflows,cre

57、ating faster and more intelligent insights and decision points.When decisions are made faster,the organization can pivot quickly to answer the call of disruptions that might occur in the business.”2 These conclusions are part of the Worldwide Enterprise Applications Software Forecast 20242028 that t

58、he research company issued in May 2024.IDCs 2024 SaaS Path Survey,analyzing data from 2,875 enterprise software respondents,finds that “approximately 38.5%of organizations on average are using SaaS products and 42%on average are planning on investing in SaaS enterprise applications in the next three

59、 years.In addition,across the same grouping,59.5%of organizations on average plan to renew with the same vendor,while 21%on average are planning to switch to a new vendor.”3 According to IDC,there are clear signals of a change in user behavior when it comes to utilizing enterprise software.“Employee

60、s are engaging and interacting with software as a coworker,relying upon its information to navigate the business to the desired outcomes quickly.This change in technology and experience greatly improves the selection of intelligent technology providers that will enhance the market for years to come,

61、”2 said Mickey North Rizza,group vice president,Enterprise Software,IDC.1 European Central Bank,Economic Bulletin,Issue 4/2024,Publication Date:June 20,2024 2 Worldwide Enterprise Applications Software Forecast,20242028:AI Everywhere World Brings Intelligence and Experience-Orchestrated Applications

62、.May 2024,IDC#US51079424 3 IDC SaaS Path:Executive Summary,2024 Examining the SaaS Buyers Journey,22-May-2024,IDC#US51872624 Impact on SAP SAP had a strong start into the first half of the year,demonstrating resilient momentum despite ongoing macroeconomic uncertainties.This is highlighted by contin

63、ued growth in demand for SAPs solutions and progress with our strategic initiatives.Order entry,Current Cloud Backlog,and Cloud revenues showed persistent high growth rates.During our SAP Sapphire event in May,SAP announced several partnerships and particularly an expansion of our engagement with NV

64、IDIA,establishing a strong focus on accelerating generative AI across SAPs portfolio of cloud solutions and applications.With this,SAPs Business AI strategy is further evolving and is expected to play a key role in customer interactions.Furthermore,our strategic acquisition of WalkMe,a leader in dig

65、ital adoption platforms,will complement the SAP Signavio and SAP LeanIX portfolios,aiming to improve adoption rates and reduce time to value for our customers.Performance Against Our Outlook for 2024 In this section,all discussion of the contributions to target achievement is based either on IFRS or

66、 non-IFRS measures.Whether IFRS or non-IFRS measures are discussed is either explicitly stated in the header of the respective subsection,or the numbers are individually identified as either IFRS or non-IFRS measures.We present,discuss,and explain the reconciliation of IFRS measures to non-IFRS meas

67、ures in the Supplementary Financial Information section.Outlook for 2024(Non-IFRS)For our outlook based on non-IFRS numbers,see the Financial Targets and Prospects section in this consolidated Half-Year Management Report.SAP Half-Year Report 2024 9/51 Key Figures SAP Group in the First Half of 2024(

68、IFRS and Non-IFRS)IFRS Non-IFRS millions,unless otherwise stated Q1Q2 2024 Q1Q2 2023 in%Q1Q2 2024 Q1Q2 2023 in%in%(constant currency)Current Cloud Backlog NA NA NA 14,808 11,537 28 28 SaaS/PaaS 7,782 6,110 27 7,782 6,110 27 28 Thereof Cloud ERP Suite1 6,581 4,984 32 6,581 4,984 32 33 Thereof Extensi

69、on Suite2 1,202 1,126 7 1,202 1,126 7 7 IaaS3 299 383 22 299 383 22 21 Cloud 8,082 6,493 24 8,082 6,493 24 25 Software licenses 432 591 27 432 591 27 26 Software support 5,621 5,778 3 5,621 5,778 3 2 Cloud and software 14,134 12,863 10 14,134 12,863 10 11 Total revenue 16,329 14,995 9 16,329 14,995

70、9 10 Operating expenses 15,894 12,820 24 12,855 12,216 5 6 Operating profit 434 2,174 80 3,473 2,779 25 27 Operating margin(in%)2.7 14.5 11.8pp 21.3 18.5 2.7pp 3.0pp Profit(loss)after tax from continuing operations 94 1,128 92 2,223 1,667 33 NA Profit after tax4 94 3,491 97 2,223 3,448 36 NA Effecti

71、ve tax rate(in%)76.9 36.3 40.6pp 33.1 31.0 2.1pp NA Earnings per share,basic(in)from continuing operations 0.05 0.97 95 1.91 1.44 33 NA Earnings per share,basic(in)4 0.05 3.12 98 1.91 3.23 41 NA 1 Cloud ERP Suite references the portfolio of strategic Software-as-a-Service(SaaS)and Platform-as-a-Serv

72、ice(PaaS)solutions that are tightly integrated with our core ERP solutions and are included in key commercial packages,such as RISE with SAP.The following offerings contribute to Cloud ERP Suite revenue:SAP S/4HANA Cloud,SAP Business Technology Platform,and core solutions for HR and payroll,spend ma

73、nagement,commerce,customer data solutions,business process transformation,and working capital management.2 Extension Suite references SAPs remaining SaaS and PaaS solutions that supplement and extend the functional coverage of Cloud ERP Suite.3 Infrastructure as a service(IaaS):The major portion of

74、IaaS comes from SAP HANA Enterprise Cloud.4 From continuing and discontinued operations Operating Performance(IFRS and Non-IFRS)Cloud and software revenue(IFRS and non-IFRS)was 14,134 million(first half of 2023:12,863 million),an increase of 10%.On a constant currency basis(non-IFRS),the increase wa

75、s 11%.This increase was mainly driven by cloud revenue growth of 24%,which was particularly fueled by strong growth in our Cloud ERP Suite.Software licenses revenue(IFRS and non-IFRS)decreased 27%(26%at constant currencies,non-IFRS)as more customers selected SAPs cloud offerings such as RISE with SA

76、P.Software support revenue(IFRS and non-IFRS)was 5,621 million(first half of 2023:5,778 million),a decrease of 3%(2%at constant currencies,non-IFRS).Our operating expenses(IFRS)increased 24%to 15,894 million(first half of 2023:12,820 million),primarily due to restructuring expenses.Operating expense

77、s(non-IFRS)increased 5%to 12,855 million(first half of 2023:12,216 million)at a slower pace compared to revenue growth.Share-based payment expenses increased to 1,280 million(first half of 2023:1,167 million),mainly due to an increase in the SAP share price of around 50 in the first half of 2024(fir

78、st half of 2023:increase in the SAP share price of around 30).For more information about share-based payment expenses,see the Notes to the Consolidated Half-Year Financial Statements,Note(B.3).The restructuring expenses,which increased to 2,873 million(first half of 2023:257 million),mainly relate t

79、o the transformation program that SAP announced in the first quarter of 2024 to further increase its focus on key strategic growth areas,notably AI.The vast majority of projected expenses has already been recognized in the first half of 2024.For more information about restructuring,see the Notes to

80、the Consolidated Half-Year Financial Statements,Note(B.4).SAP Half-Year Report 2024 10/51 Compared with the same period in the previous year,our operating profit(IFRS)decreased 80%,or 1,740 million,to 434 million(first half of 2023:2,174 million),mainly due to the restructuring expenses.The describe

81、d effects also apply to our non-IFRS operating profit and non-IFRS operating margin,which are excluded from the restructuring expenses.Profit After Tax and Earnings per Share(IFRS)Profit after tax(IFRS)was 94 million(first half of 2023:1,128 million),a decrease of more than 92%compared to the same p

82、eriod in 2023.Basic earnings per share(IFRS)was 0.05(first half of 2023:0.97),a decrease of 95%.The change in profit after tax(IFRS)and in basic earnings per share(IFRS)is mainly due to the above-mentioned increase in shared based compensation expenses and restructuring expenses.These effects are sl

83、ightly compensated by the result of gains and losses from equity securities,net which increased 164 million to 123 million(first half of 2023:41 million).Profit after tax from continuing operations and discontinued operations decreased 97%from 3,491 million to 94 million due to the above-mentioned e

84、ffects and the divesture of Qualtrics and the corresponding disposal gain in the first half of 2023.The effective tax rate(IFRS)was 76.9%(first half of 2023:36.3%).The year-over-year increase mainly resulted from a temporary inability to offset withholding taxes in Germany due to tax losses in 2024

85、resulting from restructuring,which were partly compensated by changes in tax-exempt income and non-deductible expenses.Profit After Tax and Earnings per Share(Non-IFRS)Profit after tax(non-IFRS)was 2,223 million(first half of 2023:1,667 million),an increase of 33%.Basic earnings per share(non-IFRS)w

86、as 1.91(first half of 2023:1.44),an increase of 33%.The change in profit after tax(non-IFRS)and in basic earnings per share(non-IFRS)is mainly due to the above-mentioned increase of cloud revenue and improvements in margin.Profit after tax from continuing operations and discontinued operations(non-I

87、FRS)was 2,223 million(first half of 2023:3,448 million),due to the divesture of Qualtrics and the corresponding disposal gain in the first half of 2023.The effective tax rate(non-IFRS)was 33.1%(first half of 2023:31.0%).The year-over-year increase mainly resulted from a temporary inability to offset

88、 withholding taxes in Germany due to tax losses in 2024 resulting from restructuring.Segment Information At the end of the first half of 2024,SAP had one operating segment.For more information about our segment reporting,see the Notes to the Consolidated Half-Year Financial Statements,Note(C.1)and N

89、ote(C.2).For more information about our operating performance,see the Operating Performance(IFRS and Non-IFRS)section in this consolidated Half-Year Management Report.Finances and Assets(IFRS)Cash Flow millions Q1Q2 2024 Q1Q2 2023 Net cash flows from operating activities 4,297 3,160 36%Capital expen

90、diture 365 413 12%Payments of lease liabilities 148 188 21%Free cash flow 3,784 2,559 48%Free cash flow margin 23 17 6pp Free cash flow(as a percentage of profit after tax)4,036 227 3,809pp SAP Half-Year Report 2024 11/51 The higher operating cash flow is mainly attributable to increased profitabili

91、ty and an enhanced working capital management,as well as lower payments for income taxes(70 million decrease year over year).Payouts related to restructuring amounted to 563 million in the first half of 2024.For more information about our transformation program,see the Notes to the Consolidated Half

92、-Year Financial Statements,Note(B.4).The free cash flow margin,defined as free cash flow as a percentage of total revenue,increased 6pp year over year.Group Liquidity millions 2024 2023 Net liquidity(+)/net debt()12/31/2023(PY:12/31/2022)Free Cash Flow 3,521 2,070 Net cash flows from operating activ

93、ities 3,784 4,297 3,160 Capital expenditure 365 413 Lease payments 148 188 Business combinations 19 0 Dividends 2,565 2,395 Treasury shares 975 0 Net proceeds from Qualtrics sale 0 6,323 Other 73 237 Net liquidity(+)/net debt()6/30/2024(PY:6/30/2023)3,674 4,180 Liquidity and Financial Position milli

94、ons 6/30/2024 12/31/2023 Financial debt 7,776 7,755 21 Cash and cash equivalents 7,870 8,124 254 Current time deposits and debt securities 3,579 3,151+428 Group liquidity 11,449 11,275+174 Net liquidity(+)/net debt()3,674 3,521+153 Goodwill 29,777 29,088+689 Total assets 70,378 68,335+2,043 Total eq

95、uity 41,942 43,406 1,465 Equity ratio(total equity as a percentage of total assets)60 64 4pp Dividend Policy On June 5,2024,SAP announced that it was adjusting its dividend policy effective immediately.The new policy is to pay a dividend amounting to at least 40%of the Groups non-IFRS profit after t

96、ax from continuing operations(previously:at least 40%of the Groups IFRS profit after tax).This change is intended to reduce volatility in the dividend payout ratio and ensure close alignment between dividend payout and financial performance.SAP Half-Year Report 2024 12/51 Employees For over five dec

97、ades now,our people have been the driving force behind the continuous success of SAP,through dedication,customer focus,and innovation power.Aiming for a highly engaged,diverse,future-fit workforce equipped with the right skills while also adapting to new market trends helps SAP attract and retain th

98、e best talent.As part of SAPs business transformation,we also want to leverage the power of AI to best support our managers and employees,elevating their employee experience and guiding our people decisions,while increasing the digitalization and overall efficiency and effectiveness of our People&Cu

99、lture function.In the first six months of 2024,we accelerated the adoption of new transformational technologies to support our managers and employees across the employee lifecycle with cutting-edge human capital management(HCM)solutions,for example:Our over 105,000 employees have direct access to bu

100、siness AI solutions such as the internal Job Matching Assistant app developed on SAP BTP.More than 4,000 SAP employees can already leverage Joule integrated into SAP SuccessFactors,supported by our clear ambition for an SAP-wide roll-out by the end of 2024.Aiming to become one of the worlds leading

101、AI-powered People&Culture functions,we apply insights from our own implementation journey to help drive the development of leading-edge HCM solutions from an HR practitioner perspective,while actively sharing our showcase with SAP customers and partners.With SAP entering a new era,we believe that ge

102、tting together again in person more regularly(as envisaged by our Return to Office guidance)will be key to success fostering collaboration,innovation,and productivity as the basis for strengthening our culture and shared values.In January 2024,we announced our evolved Pledge to Flex hybrid work guid

103、ance,requiring all SAP employees to work three-days-a-week in-office or at a customer/partner site,considering local regulations.A transition period until the end of April(for Germany until the end of May),with targeted enablement for employees and leaders,ensured a country-specific adaptation and C

104、ompany-wide ramp-up.An exception handling framework empowers SAP leaders to grant temporary exceptions within certain guardrails.This supports employees throughout the transition.With employees from more than 150 nationalities and five generations,diversity and inclusion(D&I)is an integral part of S

105、APs DNA.Over the last 18 months,we have received 170 Employer of Choice awards,including 55 recognitions for equality and diversity.Our D&I strategy focuses on multiple dimensions of human identity.From a gender diversity perspective,our aspiration to reach gender parity continues,and we aim to incr

106、ease the share of women in the workforce1 to 40%by the end of 2030.At the end of the first half of 2024,women comprised 35.3%of our workforce and held 29.9%of all management positions2 at the Company.Also,SAP has set a new target of increasing the representation of women in executive roles3 to 25%by

107、 the end of 2027.This target is linked to the compensation of the SAP Executive Board members.We are currently at 21.9%.We are building a leadership pipeline through initiatives such as our Women to Watch program;piloted in the first half of 2023 with 251 participants.The first cohort ran from May 2

108、023 until April 2024 with a 27.9%progression and promotions rate during this time.In addition,a stronger focus on inclusive hiring practices,which led to a 41.6%female hiring share in 2023,has supported progress on our KPIs.Crucial to our success are our 13 employee network groups,led by over 900 em

109、ployee volunteers,which connect one-third of our global workforce across 50 countries.The Business Womens Network,dedicated to helping women advance their careers at SAP,is the largest of these groups,with more than 19,000 members.Through the active participation of employees,topics such as LGBT inc

110、lusion,neurodiversity/autism inclusion,accessibility,and faith in the workplace also remain a priority for SAP.Our market-leading Fair Pay practices are agnostic of personal characteristics such as gender and age.They continue to ensure that all employees are compensated both within the pay range fo

111、r their individual roles and within the acceptable spread of pay differences with peers.We accomplish this SAP Half-Year Report 2024 13/51 through annual global reviews and centrally funded pay adjustments,which most recently took place in the first half of 2024.Our post-review analysis found that f

112、ewer women than men needed pay equity adjustments.Whats more,99.8%of employees have transparency into their own pay ranges and visibility into their annual compensation statements.These statements were enhanced in 2024 to include the previous years equity grants(as applicable)and the value of top be

113、nefits(available to 80%of employees compared to 66%in 2023).Among the top benefits,we displayed SAPs contributions to pensions,healthcare plans,and,where available,flexible benefits schemes in certain countries.Looking at our people-related KPIs,the Employee Engagement Index was at 72%,a decrease of

114、 8pp compared to both the score of 80%in October 2023 and the full-year score published in our Integrated Report 2023.We expect the full-year score for Employee Engagement to range between 70%and 74%.Our Leadership Trust Net Promoter Score remains robust at 67 points.Similarly,the Business Health Cu

115、lture Index stands strong at 78%,meeting the target corridor of 78%to 80%.At the end of the first half of 2024,SAPs Employee Retention Rate4 was still high at 96.6%(compared to 95.1%at the end of the first half of 2023 and 96.4%at the end of 2023).On June 30,2024,we had 105,315 FTEs worldwide(June 3

116、0,2023:105,328 FTEs;December 31,2023:107,602 FTEs).For a breakdown of headcount by function and geography,see the Notes to the Consolidated Half Year Financial Statements,Note(B.1).SAP is constantly adapting to new market conditions and changing customer requirements.As part of this ongoing transfor

117、mation,we launched a Company-wide restructuring program in 2024.Our aim is to further simplify our structures and processes while investing in key strategic growth areas such as AI.For more information on the impact of the program,see Note(B.4).1 We define“women in the workforce”as the share of wome

118、n in the total workforce.2 We define“women in management”as the share of women in management positions as compared to the total number of managers,expressed by the number of individuals and not FTEs.It includes three categories:1)Managers managing teams:Refers to managing teams of at least one emplo

119、yee or vacant positions;2)Managers managing managers:Refers to managing managers who manage teams;3)Executive Board members.3 We define“women in executive roles”as the ratio of women on the three management levels below the Executive Board out of the combined total of all genders at these three leve

120、ls.“Women in executive roles”is measured as a percentage of women heads out of the total number of heads at those three executive levels.4 Ratio of the average number of employees minus the employees who left voluntarily,to the average number of employees,over the past 12 months(in full-time equival

121、ents,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.As opposed to keeping a low turnover rate,we aim to keep our retention rate high.For more transparency and precise headcount management purposes,the numb

122、er of employees who left voluntarily excludes those who left voluntarily as part of restructuring-related departures.Energy and Emissions In the first half of 2024,we maintained our commitment to help rebuild a more resilient,restorative,and inclusive economy while respecting planetary boundaries an

123、d human rights both as an enabler and exemplar.SAP aims to put sustainability at the core of every business.To help our customers on their sustainability journey,we offer an expanded portfolio of solutions for sustainability management.For more information,see the Our Product Strategy section in thi

124、s consolidated Half-Year Management Report.In 2023,SAP achieved carbon neutrality in its own operations following our strategic approach to first avoid,secondly reduce,and thirdly compensate our yet unavoidable emissions.This means that the net carbon emissions of our own operations(covering scope 1

125、,2 and selected scope 3 emissions)reached 0 kilotons(kt)of CO2 equivalents(CO2e)after we continued and expanded efficiency and innovation programs.Having reached our carbon neutrality milestone in 2023,we are now focused on our next goal:achieving net zero emissions along our entire value chain(cove

126、ring scope 1,2 and 3)by 2030 in line with a 1.5C future.In this regard,we aim to apply the demanding Corporate Net-Zero Standard set by the Science-Based Targets initiative(SBTi).SAPs ESG efforts along with its measures,initiatives,and targets have been recognized by renowned sustainability ratings

127、and ranking organizations:In IDCs“Sustainability Index for Software Providers”report,SAP placed in the top 3 of 23 assessed software vendors.We ranked 48th in Corporate Knights 2024 Global 100 Most Sustainable Corporations in the World index.SAP Half-Year Report 2024 14/51 Organization and Changes i

128、n Management On April 2,2024,SAP announced that the Supervisory Board had extended the contract of Executive Board member Dr.Juergen Mueller,Chief Technology Officer,for three years until the end of 2027.On May 6,2024,SAP announced that the Supervisory Board had extended the contract of CEO and Exec

129、utive Board member Christian Klein for three years until the end of April 2028 and had made him the chairperson of the Executive Board.Risk Management and Risks We have comprehensive risk-management structures in place that are intended to enable us to recognize and analyze risks early on,take the a

130、ppropriate action,and mitigate any risks that materialize as presented in the Risk Management and Risks section in our Integrated Report 2023 and our Annual Report on Form 20-F for 2023.For changes in our Litigation,Claims,and Legal Contingencies since our last Integrated Report,see the Notes to the

131、 Consolidated Half-Year Financial Statements,Note(G.1).Based on our aggregation approach and taking into consideration the mitigations implemented for all our risk factors and risks,as at June 30,2024,we see no material change relative to our 2023 risk assessment or 2023 risk-bearing capacity.We do

132、not believe that any of the risks we identified in our Integrated Report 2023 and Annual Report on Form 20-F for 2023,and as outlined herein,jeopardize our ability to continue as a going concern.Expected Developments and Opportunities Future Trends in the Global Economy In its most recent Economic B

133、ulletin,1 the European Central Bank(ECB)presents a largely unchanged outlook for global economic growth,compared to statements earlier this year:Global GDP growth in 2024 and beyond might remain slightly below the average rate for the past decade.Presumably,the risks to economic growth will be balan

134、ced in the near term.However,trade tensions between major economies,geopolitical risks,and restrictive monetary policies could diminish economic growth projections.According to the ECB,the euro area economy is likely to continue its services-led expansion in the near future,even at a higher pace tha

135、n previously suggested.Robust wage growth might lead to increasing disposable income,more confidence,and improving terms of trade,giving rise to a consumption-driven recovery over the course of 2024.Economic growth in the euro area could also benefit from a resilient labor market,lower inflation,and

136、 a pick-up in productivity over the projection horizon.Expanding foreign demand should support euro area export growth.In the United States,the ECB expects imports to recover further in the second half of the year.Real GDP growth might increase slightly but will likely remain below the pace of growt

137、h recorded in the second half of 2023.As for China,the ECB suggests that investment in industrial production will probably improve steadily,driven by stimulus in infrastructure projects.However,it also projects continued weakness in producer price developments and sluggish domestic demand.Economic T

138、rends GDP Growth Year Over Year%2023 2024p 2025p World 3.2 3.2 3.2 Advanced Economies 1.6 1.7 1.8 Emerging Markets and Developing Economies 4.3 4.2 4.2 Regions(according to IMF taxonomy)Euro Area 0.4 0.8 1.5 Germany 0.3 0.2 1.3 SAP Half-Year Report 2024 15/51 Emerging and Developing Europe 3.2 3.1 2

139、.8 Middle East and Central Asia 2.0 2.8 4.2 Sub-Saharan Africa 3.4 3.8 4.0 United States 2.5 2.7 1.9 Canada 1.1 1.2 2.3 Latin America and the Caribbean 2.3 2.0 2.5 Japan 1.9 0.9 1.0 Emerging and Developing Asia 5.6 5.2 4.9 China 5.2 4.6 4.1 p=projection Source:International Monetary Fund(IMF),World

140、Economic Outlook April 2024,Steady but Slow:Resilience amid Divergence(https:/www.imf.org/-/media/Files/Publications/WEO/2024/April/English/text.ashx),p.10.The IT Market Outlook for 2024 and Beyond“The demand for cloud-based enterprise applications software,which continues to be the foundational dep

141、loyment model in the digital era and AI everywhere world,outpaces that of on-premises and other software solutions.”2 This is what the U.S.-based market research firm IDC said in May 2024 in its Worldwide Enterprise Applications Software Forecast 20242028.On-premise deployment in the worldwide enter

142、prise software market is expected to grow 2.3%CAGR whereas the public cloud growth rate is expected to reach 16.5%CAGR by 2028.2“With organizations making this shift to the cloud,and many others planning on replacing their current cloud system,the enterprise applications software market overall,alon

143、g with the individual application markets,will continue to be very competitive for years to come,”2 says IDC.Adding generative artificial intelligence(GenAI)to the equation,IDC states:“Competitive advantage is a clear differentiator in the digital world,and applying GenAI is a clear-cut win for orga

144、nizations as it improves not only productivity but also decision velocity.”2 Enterprise software vendors commercial models to monetize AI are in early stages,though.Interestingly,“30.9%of the respondents from IDCs 2024 SaaS Path Survey are willing to pay more for machine learning and artificial inte

145、lligence capabilities”2,3 in their enterprise software landscape,which might lead to better predictability of future revenue streams for vendors.As a clear mandate for enterprise software vendors,IDC advises to“embrace generative AI.Vendors that are not embracing generative AI may find themselves in

146、 trouble quickly.”2,3 The aforementioned 2024 Survey finds that“across the enterprise application markets,25.4%of corporations plan to replace their current application if GenAI is not included in the next release and 21.4%will renew because GenAI is included in the next release.”2,3 Overall,“the tr

147、ansformative potential of GenAI in the business is an incredible opportunity to reshape business experience completely,”2 says IDC.As an important aspect for vendors to focus on,IDC suggests to“harness the internal uses of GenAI,as Generative AI solutions are revolutionizing the software development

148、 process by enabling the automatic generation of computer code from text prompts”.2 According to IDC,GenAI will have a multifold impact on software developer efficiency and productivity,by“handling routine tasks and identifying errors but also modernizing legacy systems and facilitating language tra

149、nslation.This integration of AI into development tools promises high-quality code recommendations,streamlining the creation process and bolstering security.”2 1 European Central Bank,Economic Bulletin,Issue 4/2024,Publication Date:June 20,2024 2 Worldwide Enterprise Applications Software Forecast,20

150、242028:AI Everywhere World Brings Intelligence and Experience-Orchestrated Applications.May 2024,IDC#US51079424 3 IDC SaaS Path:Executive Summary,2024 Examining the SaaS Buyers Journey,22-May-2024,IDC#US51872624 SAP Half-Year Report 2024 16/51 Impact on SAP The number of macro challenges has not got

151、ten smaller in 2024,and business model agility and resiliency is key for SAP and its customers.Ongoing wars in Ukraine and Gaza pose real threats to supply chains,and trade tensions between major economies put additional pressure on companies.Nevertheless,SAP reported very strong business results in

152、 the first six months of the year and confidently confirms the 2024 outlook.Our clear strategy towards cloud and business AI across the complete portfolio resonates with the robust demand from our customers.As we focus on tangible and applicable use cases for our customers,enabling them to different

153、iate and gain competitive advantage over their peers,the strategy positions SAP as trusted advisor and vendor of choice.Our healthy pipeline fueled by net new customers,the cloud conversions by existing customers and substantial upselling and cross-selling makes us confident for the future.Growth ra

154、tes for Current Cloud Backlog,Cloud revenues and particularly for Cloud ERP Suite show sustained high values,and the percentage of more predictable revenues reached 84%in the second quarter.The Company-wide transformation program that we initiated in January 2024 continues to progress well,further e

155、nhancing our operational efficiencies and laying the groundwork for future growth and agility.Financial Targets and Prospects(Non-IFRS)Revenue and Operating Profit Targets and Prospects In April 2024,SAP revisited its 2024 outlook and confirmed its performance expectations underlying its January 202

156、4 outlook.In July 2024,SAP reconfirmed its 2024 outlook and continues to expect:17.0 billion to 17.3 billion in cloud revenue at constant currencies(2023:13.66 billion),up 24%to 27%at constant currencies 29.0 billion to 29.5 billion in cloud and software revenue at constant currencies(2023:26.92 bil

157、lion),up 8%to 10%at constant currencies 7.6 billion to 7.9 billion non-IFRS operating profit at constant currencies(2023:6.51 billion),up 17%to 21%at constant currencies.Free cash flow of approximately 3.5 billion(2023:5.09 billion)An effective tax rate(non-IFRS)of around 32.0%(2023:30.3%)Additional

158、ly,SAP continues to expect:Current Cloud Backlog:we expect a year-end growth rate similar to that of 2023,while at a larger scale Cloud ERP Suite revenue:we expect to sustain the high growth rate in 2024 While SAPs full-year 2024 business outlook is at constant currencies,actual-currency reported fi

159、gures are expected to be impacted by currency exchange rate fluctuations as the Company progresses through the year.For the third-quarter and full-year 2024 expected currency impacts,see the table below:Currency Impact Assuming June 30,2024 Rates Apply for 2024 In percentage points Q3 FY Cloud+0.5 p

160、p 0.5 pp Cloud and software+0.5 pp 0.5 pp Operating profit+0.0 pp 1.5 pp The following table shows the estimates of the items that represent the differences between our IFRS financial measures and our non-IFRS financial measures.SAP Half-Year Report 2024 17/51 Non-IFRS Measures millions Estimated Am

161、ounts for Full Year 2024 Q1Q2 2024 Q1Q2 2023 Acquisition-related charges 280360 166 177 Restructuring1 approximately 3 B 2,873 257 Regulatory compliance matters 0 0 170 Adjustment for gains and losses from equity securities,net NA2 123 41 1 For more information about restructuring,see the Notes to t

162、he Consolidated Half-Year Financial Statements,Note(B.4).2 We do not provide an outlook for the effective tax rate(IFRS)due to the uncertainty and potential variability of gains and losses associated with equity securities,which are reconciling items between the two effective tax rates(non-IFRS and

163、IFRS).These items cannot be provided without unreasonable efforts but could have a significant impact on our future effective tax rate(IFRS).Furthermore,the differences between free cash flow as our non-IFRS financial measure and operating cash flow as our IFRS financial measure include estimated ca

164、sh flows in 2024 for leasing and capital expenditures of 1.1 billion(2023:1.1 billion).Medium-Term Prospects SAP is updating its financial ambition 2025,reflecting the anticipated incremental benefits from the expanded transformation program.Overall savings from the transformation program are expect

165、ed to include a triple-digit million Euro amount from the internal deployment of Business AI scenarios.By 2025,SAP now expects:Non-IFRS operating profit of approximately 10.2 billion(previously:approximately 10 billion)reflecting expected savings of approximately 200 million from the increased volum

166、e of the restructuring program.SAP continues to expect:Cloud revenue of more than 21.5 billion Total revenue of more than 37.5 billion Non-IFRS cloud gross profit of approximately 16.2 billion Free cash flow of approximately 8.0 billion including an anticipated mid-triple-digit million Euro restruct

167、uring payout in 2025 associated with the 2024 transformation program A share of more predictable revenue of approximately 86%The 2025 financial ambition is based on an exchange rate of 1.10 USD per EUR.Furthermore,SAP expects:Operating margin to expand beyond 2025 Total revenue growth to accelerate

168、through 2027 The sum of total revenue growth and free cash flow margin(as a percentage of total revenue)to increase through 2025(2023:22%based on actual currency)Goals for Liquidity,Finance,and Investments SAP believes that its liquid assets combined with its undrawn credit facilities are sufficient

169、 to meet its operating financing needs in the second half of 2024 as well,and,together with expected cash flows from operations,will support debt repayments and its currently planned capital expenditure requirements over the near and medium term.In 2024 and compared to 2023,SAP expects a decrease in

170、 free cash flow to approximately 3.5 billion mainly due to restructuring and compliance payments,which are expected to be partially offset by increased profitability.Consistently to what SAP disclosed in its Integrated Report 2023,SAP reiterates its expectations for free cash flow of approximately 3

171、.5 billion in 2024 and approximately 8.0 billion in 2025 despite anticipated mid-triple-digit million Euro payouts due to restructuring.Overall payouts associated with the program are currently expected at approximately 3 billion.SAP Half-Year Report 2024 18/51 In the second half of 2024,SAP intends

172、 to repay U.S.private placements with a volume of$0.3 billion as well as a Eurobond with a volume of 0.9 billion.SAPs planned investment expenditures for 2024 and 2025,other than from business combinations,consist primarily of the purchase of IT infrastructure(such as data centers)and the constructi

173、on of new buildings.Primarily driven by lower investment expenditures for Facility and IT,SAP now expects planned investment expenditures below 900 million for 2024,compared to the approximately 950 million disclosed in the Integrated Report 2023.In 2025,capital expenditures are still expected to de

174、crease to approximately 700 million.Non-Financial Goals 2024 and Ambitions for 2025 In addition to our financial goals,we focus on four non-financial targets:customer loyalty,employee engagement,Net Zero climate performance,and women in executive roles.In 2024,SAP now expects the Employee Engagement

175、 Index to be in a range of 70%to 74%(previously:76%to 80%).SAP continues to expect:A Customer Net Promoter score of 9 to 13 To steadily decrease carbon emissions across the relevant value chain,in line with our target of achieving Net Zero carbon emissions by 2030 To steadily increase the number of

176、women in executive roles in line with our end of year 2027 target to achieve 25%For 2025,SAP now aims to increase the Employee Engagement Index(previously:Steadily increasing the Employee Engagement Index).SAP continues to aim for:A steadily increasing Customer Net Promoter Score The 2025 non-financ

177、ial ambitions are in addition to our medium-term targets of achieving net-zero carbon emissions across the value chain by 2030 and of reaching 25%women in executive roles by the end of 2027.Premises on Which Our Outlook and Prospects Are Based In preparing our outlook and prospects,we have taken int

178、o account all events known to us at the time we prepared this report that could influence SAPs business going forward.Opportunities We have comprehensive opportunity-management structures in place that are intended to enable us to recognize and analyze opportunities early and to take the appropriate

179、 action.The opportunities remain largely unchanged compared to what we disclosed in our Integrated Report 2023.SAP Half-Year Report 2024 19/51 Consolidated Half-Year Financial Statements IFRS Primary Half-Year Financial Statements 20-24 Notes to the Consolidated Half-Year Financial Statements 25(IN.

180、1)Basis for Preparation.25 Section A Customers 27(A.1)Revenue.27(A.2)Trade and Other Receivables.28 Section B Employees 29(B.1)Employee Headcount.29(B.2)Employee Benefits Expenses.29(B.3)Share-Based Payments.30(B.4)Restructuring.30 Section C Financial Results 32(C.1)Results of Segments.32(C.2)Reconc

181、iliation of Segment Measures to Income Statement.33(C.3)Financial Income,Net.34(C.4)Income Taxes.34 Section D Invested Capital 35(D.1)Goodwill.35(D.2)Property,Plant,and Equipment.35 Section E Capital Structure,Financing,and Liquidity 36(E.1)Total Equity.36(E.2)Liquidity.37 Section F Management of Fi

182、nancial Risk Factors 38(F.1)Financial Risk Factors,Financial Risk Management,and Fair Value Disclosures on Financial Instruments.38 Section G Other Disclosures 39(G.1)Other Litigation,Claims,and Legal Contingencies.39(G.2)Related Party Transactions.40(G.3)Events after the Reporting Period.40(G.4)Sco

183、pe of Consolidation.40 SAP Half-Year Report 2024 20/51 Consolidated Income Statement of SAP Group Half Year millions,unless otherwise stated Q1Q2 2024 Q1Q2 2023 in%Cloud 8,082 6,493 24 Software licenses 432 591 27 Software support 5,621 5,778 3 Software licenses and support 6,053 6,369 5 Cloud and s

184、oftware 14,134 12,863 10 Services 2,195 2,132 3 Total revenue(A.1),(C.2)16,329 14,995 9 Cost of cloud 2,214 1,897 17 Cost of software licenses and support 637 687 7 Cost of cloud and software 2,851 2,584 10 Cost of services 1,699 1,718 1 Total cost of revenue 4,550 4,301 6 Gross profit 11,778 10,693

185、 10 Research and development 3,270 3,138 4 Sales and marketing 4,496 4,457 1 General and administration 696 670 4 Restructuring(B.4)2,873 257 100 Other operating income/expense,net 9 3 NA Total operating expenses 15,894 12,820 24 Operating profit(loss)434 2,174 80 Other non-operating income/expense,

186、net 153 116 32 Finance income 611 369 65 Finance costs 486 656 26 Financial income,net(C.3)125 287 NA Profit(loss)before tax from continuing operations(C.2)407 1,771 77 Income tax expense 313 643 51 Profit(loss)after tax from continuing operations 94 1,128 92 Attributable to owners of parent 60 1,13

187、5 95 Attributable to non-controlling interests 34 7 NA Profit(loss)after tax from discontinued operations 0 2,363 NA Profit(loss)after tax2 94 3,491 97 Attributable to owners of parent2 60 3,640 98 Attributable to non-controlling interests2 34 149 NA Earnings per share,basic(in)1 from continuing ope

188、rations 0.05 0.97 95 Earnings per share,basic(in)1,2 0.05 3.12 98 Earnings per share,diluted(in)1 from continuing operations 0.05 0.97 95 Earnings per share,diluted(in)1,2 0.05 3.09 98 1 For the six months ended June 30,2024 and 2023,the weighted average number of shares was 1,167 million(diluted:1,

189、178 million)and 1,168 million(diluted:1,176 million),respectively(treasury stock excluded).2 From continuing and discontinued operations SAP Half-Year Report 2024 21/51 Consolidated Statements of Comprehensive Income of SAP Group Half Year millions Q1Q2 2024 Q1Q2 2023 Profit after tax 94 3,890 Items

190、 that will not be reclassified to profit or loss Remeasurements on defined benefit pension plans,before tax 5 0 Income taxes relating to remeasurements on defined benefit pension plans 0 0 Remeasurements on defined benefit pension plans,net of tax 4 0 Other comprehensive income for items that will n

191、ot be reclassified to profit or loss,net of tax 4 0 Items that will be reclassified subsequently to profit or loss Gains(losses)on exchange differences on translation,before tax 1,127 755 Reclassification adjustments on exchange differences on translation,before tax 25 129 Exchange differences,befor

192、e tax 1,153 884 Income taxes relating to exchange differences on translation 10 8 Exchange differences,net of tax 1,163 876 Gains(losses)on cash flow hedges/cost of hedging,before tax 4 45 Reclassification adjustments on cash flow hedges/cost of hedging,before tax 10 32 Cash flow hedges/cost of hedg

193、ing,before tax 6 13 Income taxes relating to cash flow hedges/cost of hedging 7 4 Cash flow hedges/cost of hedging,net of tax 1 10 Other comprehensive income for items that will be reclassified to profit or loss,net of tax 1,164 866 Other comprehensive income,net of tax 1,160 866 Total comprehensive

194、 income1 1,253 3,024 Attributable to owners of parent1 1,207 3,233 Attributable to non-controlling interests1 47 208 1 From continuing and discontinued operationsSAP Half-Year Report 2024 22/51 Consolidated Statement of Financial Position of SAP Group as at 6/30/2024 and 12/31/2023 millions 2024 202

195、3 Cash and cash equivalents 7,870 8,124 Other financial assets 3,808 3,344 Trade and other receivables 6,148 6,322 Other non-financial assets(A.2)2,531 2,374 Tax assets 539 407 Total current assets 20,896 20,571 Goodwill (D.1)29,777 29,088 Intangible assets 2,365 2,505 Property,plant,and equipment(D

196、.2)4,255 4,276 Other financial assets 6,109 5,543 Trade and other receivables 121 203 Other non-financial assets(A.2)3,515 3,573 Tax assets 346 382 Deferred tax assets 2,993 2,193 Total non-current assets 49,482 47,763 Total assets 70,378 68,335 millions 2024 2023 Trade and other payables 1,875 1,78

197、3 Tax liabilities 439 266 Financial liabilities(E.2)2,271 1,735 Other non-financial liabilities 4,002 5,648 Provisions(B.4)2,341 235 Contract liabilities 7,734 4,975 Total current liabilities 18,662 14,642 Trade and other payables 20 39 Tax liabilities 818 877 Financial liabilities(E.2)7,321 7,941 O

198、ther non-financial liabilities 850 698 Provisions 444 433 Deferred tax liabilities 267 265 Contract liabilities 55 33 Total non-current liabilities 9,774 10,286 Total liabilities 28,436 24,928 Issued capital 1,229 1,229 Share premium 2,263 1,845 Retained earnings 39,953 42,457 Other components of eq

199、uity 3,519 2,368 Treasury shares 5,311 4,741 Equity attributable to owners of parent 41,652 43,157 Non-controlling interests 289 249 Total equity(E.1)41,942 43,406 Total equity and liabilities 70,378 68,335 SAP Half-Year Report 2024 23/51 Consolidated Statements of Changes in Equity of SAP Group mil

200、lions Equity Attributable to Owners of Parent Non-Controlling Interests Total Equity Issued Capital Share Premium Retained Earnings Other Components of Equity Treasury Shares Total 12/31/2022 1,229 3,081 36,418 3,801 4,341 40,186 2,662 42,848 Profit after tax 3,933 3,933 43 3,890 Other comprehensive

201、 income 0 701 701 165 866 Comprehensive income 3,933 701 3,233 208 3,024 Share-based payments 777 777 111 888 Dividends 2,395 2,395 21 2,416 Reissuance of treasury shares under share-based payments 182 182 182 Transactions with non-controlling interests 2,306 2,306 0 2,261 2,261 Other changes 0 37 3

202、7 0 37 6/30/2023 1,229 1,552 40,225 3,100 4,159 41,946 283 42,229 12/31/2023 1,229 1,845 42,457 2,368 4,741 43,157 249 43,406 Profit after tax 60 60 34 94 Other comprehensive income 4 1,152 1,147 13 1,160 Comprehensive income 55 1,152 1,207 47 1,253 Share-based payments 418 418 0 418 Dividends 2,565

203、 2,565 7 2,571 Purchase of treasury shares 947 947 947 Reissuance of treasury shares under share-based payments 377 377 377 Other changes 5 5 0 6 6/30/2024 1,229 2,263 39,953 3,519 5,311 41,652 289 41,942 SAP Half-Year Report 2024 24/51 Consolidated Statement of Cash Flows of SAP Group millions Q1Q2

204、 2024 Q1Q2 2023 Profit(loss)after tax 94 3,890 Adjustments to reconcile profit(loss)after tax to net cash flows from operating activities:(Profit)loss after tax from discontinued operations 0 2,763 Depreciation and amortization 626 714 Share-based payment expense 1,280 1,167 Income tax expense 313 6

205、43 Financial income,net 125 287 Decrease/increase in allowances on trade receivables 23 5 Other adjustments for non-cash items 110 76 Increase/decrease in trade and other receivables 372 396 Decrease/increase in other assets 17 600 Increase/decrease in trade payables,provisions,and other liabilities

206、 876 896 Increase/decrease in contract liabilities 2,718 2,109 Share-based payments 778 697 Interest paid 378 244 Interest received 287 197 Income taxes paid,net of refunds 1,057 1,127 Net cash flows from operating activities continuing operations 4,297 3,160 Net cash flows from operating activities

207、 discontinued operations 0 80 Net cash flows from operating activities 4,297 3,240 Business combinations,net of cash and cash equivalents acquired 19 0 Cash flows from derivative financial instruments related to the sale of subsidiaries or businesses 0 91 Purchase of intangible assets and property,p

208、lant,and equipment 365 413 Proceeds from sales of intangible assets and property,plant,and equipment 55 43 Purchase of equity or debt instruments of other entities 7,987 220 Proceeds from sales of equity or debt instruments of other entities 7,370 722 Net cash flows from investing activities continu

209、ing operations 947 41 Net cash flows from investing activities discontinued operations 0 6,323 Net cash flows from investing activities 947 6,364 Dividends paid 2,565 2,395 Dividends paid on non-controlling interests 6 18 Purchase of treasury shares 975 0 Proceeds from borrowings 1 0 Repayments of b

210、orrowings 14 1,724 Payments of lease liabilities 148 188 Transactions with non-controlling interests 0 43 Net cash flows from financing activities continuing operations 3,708 4,283 Net cash flows from financing activities discontinued operations 0 24 Net cash flows from financing activities 3,708 4,

211、259 Effect of foreign currency rates on cash and cash equivalents 104 212 Net decrease/increase in cash and cash equivalents 254 5,134 Cash and cash equivalents at the beginning of the period 8,124 9,008 Cash and cash equivalents at the end of the period 7,870 14,142 SAP Half-Year Report 2024 25/51

212、Notes to the Consolidated Half-Year Financial Statements(IN.1)Basis for Preparation General Information About Consolidated Half-Year Financial Statements The registered seat of SAP SE is in Walldorf,Germany(Commercial Register of the Lower Court of Mannheim HRB 719915).The condensed Consolidated Hal

213、f-Year Financial Statements of SAP SE and its subsidiaries(collectively,“we,”“us,”“our,”“SAP,”“Group,”and“Company”)have been prepared in accordance with the International Financial Reporting Standards(IFRS)and in particular in compliance with International Accounting Standard(IAS)34.In this context,

214、IFRS includes all standards issued by the International Accounting Standards Board(IASB)and related interpretations issued by the IFRS Interpretations Committee(IFRS IC).The variances between the applicable IFRS standards as issued by the IASB and the standards as used by the European Union are not

215、relevant to these financial statements.Certain information and disclosures normally included in the notes to annual financial statements prepared in accordance with IFRS have been condensed or omitted.We believe that the disclosures made are adequate and that the information gives a true and fair vi

216、ew.With the ongoing transformation from on-premise to cloud services,our business activities are no longer significantly influenced by seasonal effects.Consequently,interim results are now more indicative of our results for the full year,enabling more consistent financial planning and forecasting.Ou

217、r operating cash flow,however,is generally highest in the first quarter.Amounts reported in previous years have been reclassified if appropriate to conform to the presentation in this half-year report.These unaudited condensed Consolidated Half-Year Financial Statements should be read in conjunction

218、 with SAPs audited Consolidated IFRS Financial Statements for the Year Ended December 31,2023,included in our Integrated Report 2023 and our Annual Report on Form 20-F for 2023.Due to rounding,numbers presented throughout these Consolidated Half-Year Financial Statements may not add up precisely to

219、the totals we provide and percentages may not precisely reflect the absolute figures.Amounts disclosed in our Consolidated Half-Year Financial Statements that are taken directly from our Consolidated Income Statements or our Consolidated Statements of Financial Position are marked by the symbols and

220、,respectively.Accounting Policies,Management Judgments,and Sources of Estimation Uncertainty How We Present Our Accounting Policies,Judgments,and Estimates To ease the understanding of our financial statements,we present the accounting policies,judgments,and estimates on a given subject together wit

221、h other disclosures related to the same subject in the Note that deals with this subject,and highlighted this disclosure with a light gray box and the symbol.We describe,however,only material changes of our accounting policies,judgments,and estimates in relation to our Consolidated Financial Stateme

222、nts for 2023.SAP Half-Year Report 2024 26/51 New Accounting Standards Not Yet Adopted The IASB has issued IFRS 9 and IFRS 7(Amendments to the Classification and Measurement of Financial Instruments)and published the new standard IFRS 18(Presentation and Disclosure in Financial Statements)which are r

223、elevant for SAP but not yet effective.We are currently assessing the potential impacts on SAP.SAP Half-Year Report 2024 27/51 Section A Customers This section discusses disclosures related to contracts with our customers.These consist of revenue breakdowns and information about our trade receivables

224、.For more information,see our Consolidated Financial Statements for 2023,Section A Customers.(A.1)Revenue Accounting for Revenue from Contracts with Customers Allocation of Transaction Price We have established a hierarchy to identify the standalone selling prices(SSPs)that we use to allocate the tr

225、ansaction price of a customer contract to the performance obligations in the contract.Where SSPs for an offering are observable and reasonably consistent across customers(that is,not highly variable),our SSP estimates are derived from our respective pricing history.Typically,our standardized support

226、 offerings and our professional service offerings follow this approach.Where sales prices for an offering are not directly observable or highly variable across customers,we use estimation techniques.As of 2024,we apply a new estimation technique to estimate the SSP using input parameters that more a

227、ppropriately reflect SAPs evolving business models.This SSP considers overall pricing objectives,taking market conditions and other factors into account.We estimate the SSP using a specific pricing range that encompasses the majority of our transactions.Typically,our cloud offerings follow this appr

228、oach.The change in estimation techniques for our cloud offerings did not lead to any material change in the allocation of transaction prices of a customer contract to the performance obligations of the contract.This estimate is based on contracts signed in the first half of the year and is subject t

229、o change based on the volume and nature of business conducted in the second half of the year.As the Companys go-to-market strategies evolve,the Company may modify its pricing practices in the future,which could result in changes to our SSPs.For offerings for which we cannot justify a range and we ob

230、serve highly variable pricing,and for which we lack substantial direct costs to estimate based on a cost-plus-margin approach,we allocate the transaction price by applying a residual approach.We use this technique in particular for our standard on-premise software offerings.Judgment is required when

231、 estimating SSPs.To judge whether the historical pricing of our goods and services is highly variable,we have established thresholds of pricing variability.When we estimate an SSP range based on pricing objectives,we use judgment in determining the upper and lower end of the range.Such judgment cons

232、iders price points achieved in the market as well as strategic pricing decisions.Geographic Information The amounts for revenue by region in the following tables are based on the location of customers.Cloud Revenue by Region millions Q1Q2 2024 Q1Q2 2023 EMEA 3,230 2,458 Americas 3,761 3,194 APJ 1,09

233、0 841 SAP Group 8,082 6,493 SAP Half-Year Report 2024 28/51 Cloud and Software Revenue by Region millions Q1Q2 2024 Q1Q2 2023 EMEA 6,325 5,660 Americas 5,776 5,283 APJ 2,034 1,919 SAP Group 14,134 12,863 Total Revenue by Region millions Q1Q2 2024 Q1Q2 2023 Germany 2,520 2,283 Rest of EMEA 4,804 4,33

234、8 EMEA 7,323 6,621 United States 5,369 4,974 Rest of Americas 1,359 1,233 Americas 6,728 6,207 Japan 662 616 Rest of APJ 1,615 1,550 APJ 2,277 2,166 SAP Group 16,329 14,995 For more information about our revenue accounting policies,see the Notes to the Consolidated Financial Statements for 2023,Note

235、(A.1).(A.2)Trade and Other Receivables millions 6/30/2024 Current Non-Current Total Trade receivables,net 5,721 4 5,725 Other receivables 427 116 543 Total 6,148 121 6,269 millions 12/31/2023 Current Non-Current Total Trade receivables,net 5,892 5 5,897 Other receivables 429 198 627 Total 6,321 203

236、6,524 SAP Half-Year Report 2024 29/51 Section B Employees This section provides financial insights into our employee benefit arrangements.It should be read in conjunction with the compensation disclosures for key management personnel in Note(G.5)in our Consolidated Financial Statements for 2023,as w

237、ell as SAPs Compensation Report.For more information,see our Consolidated Financial Statements for 2023,Section B Employees.(B.1)Employee Headcount On June 30,2024,the breakdown of our full-time equivalent employee numbers by function and by region was as shown in the table below.Number of Employees

238、(in Full-Time Equivalents)Full-time equivalents 6/30/2024 6/30/2023 EMEA Americas APJ Total EMEA Americas APJ Total Cloud and software 4,434 4,148 4,448 13,029 4,010 4,083 4,000 12,093 Services 8,292 4,618 5,410 18,320 7,993 5,000 5,476 18,469 Research and development 18,073 5,441 12,331 35,844 17,9

239、10 5,872 12,318 36,100 Sales and marketing 12,053 9,438 5,112 26,603 11,778 10,121 5,303 27,202 General and administration 3,640 1,723 1,291 6,653 3,475 1,765 1,281 6,521 Infrastructure 2,845 1,129 890 4,865 2,800 1,284 859 4,943 SAP Group(6/30)49,337 26,496 29,482 105,315 47,966 28,125 29,237 105,3

240、28 Thereof acquisitions1 0 0 0 0 0 0 0 0 SAP Group(six months end average)49,414 27,689 29,745 106,848 47,917 28,127 29,337 105,380 1 Acquisitions closed between January 1 and June 30 of the respective year (B.2)Employee Benefits Expenses millions Q1Q2 2024 Q1Q2 2023 Salaries 6,173 5,915 Social secu

241、rity expenses 1,056 975 Share-based payment expenses 1,280 1,167 Pension expenses 254 235 Employee-related restructuring expenses 2,873 250 Termination benefits 13 22 Employee benefits expenses 11,649 8,565 SAP Half-Year Report 2024 30/51(B.3)Share-Based Payments The allocations of expenses for shar

242、e-based payments to the various expense items are as follows:Share-Based Payments millions Q1Q2 2024 Q1Q2 2023 Cost of cloud 73 47 Cost of software licenses and support 22 20 Cost of services 192 198 Research and development 403 371 Sales and marketing 476 435 General and administration 114 96 Share

243、-based payment expenses 1,280 1,167 Thereof cash-settled share-based payments 515 473 Thereof equity-settled share-based payments 765 694 In the first half of 2024,SAP also recognized 189 million(first half of 2023:0 million)in accelerated share-based payment expenses triggered by the transformation

244、 program.These share-based payment expenses are classified as restructuring expenses in our consolidated income statements.For more information about SAPs restructuring program,see Note(B.4).Move SAP Plan and Grow SAP Plan In the first half of 2024,we granted 7.4 million(first half of 2023:13.9 mill

245、ion)share units.This includes 7.0 million(first half of 2023:12.4 million)share units which we intend to settle in shares.The dilutive effect of outstanding equity-settled share units is reflected in the calculation of earnings per share,diluted.Of the share units we intend to settle in cash,0.8 mil

246、lion share units were granted in June 2023 under the Grow SAP plan for the last time.Own SAP Plan Under the Own SAP plan,employees can purchase,on a monthly basis,SAP shares without any required holding period.The number of shares purchased by our employees under this plan was 2.4 million in the fir

247、st half of 2024(first half of 2023:3.5 million).For more information about our share-based payments and a detailed description of our share-based payment plans,see the Notes to the Consolidated Financial Statements for 2023,Note(B.3).(B.4)Restructuring millions Q1Q2 2024 Q1Q2 2023 Employee-related r

248、estructuring expenses 2,873 250 Onerous contract-related restructuring expenses and restructuring related impairment losses 1 8 Restructuring expenses 2,873 257 The vast majority of the restructuring expenses and related payments recognized in the first half of 2024 relate to the Company-wide transf

249、ormation program that SAP announced in the first quarter to further increase its focus on key strategic growth areas,in particular business AI.SAP is transforming its operational setup to capture organizational synergies and AI-driven efficiencies,and to prepare the company for highly scalable futur

250、e revenue growth.The restructuring is intended to ensure that SAPs skillset and resources continue to meet future business needs and is expected to affect 9,000 to 10,000 positions,a majority of which will be covered by voluntary leave programs and internal re-skilling measures.The program is expect

251、ed to be concluded early 2025.SAP Half-Year Report 2024 31/51 Restructuring expenses primarily include employee-related benefits such as severance payments and accelerated share-based payment expenses triggered by the transformation program(for more information on recognition and measurement of shar

252、e-based payment programs,see Note B.3).The restructuring costs presented in 2023 mainly include expenses related to the targeted restructuring program in selected areas of the Company that was executed in 2023.For the movement of the restructuring provision,please refer to the below table:millions R

253、estructuring Provision Opening balance as at 1/1/2024 37 Additions 2,873 Utilizations 550 Transfer to share-based payment liability 92 Ending balance as at 6/30/2024 2,268 The table below reconciles the utilization of the restructuring provision with the overall cash outflow related to restructuring

254、:millions Q1Q2 2024 Utilizations 550 Restructuring related share-based payments 2 Payments related to time account 11 Net cash outflow 563 If not presented separately,the restructuring expenses would break down in our income statements as follows:Restructuring Expenses by Functional Area millions Q1

255、Q2 2024 Q1Q2 2023 Cost of cloud 95 6 Cost of software licenses and support 80 11 Cost of services 533 34 Research and development 1,100 40 Sales and marketing 906 150 General and administration 160 16 Restructuring expenses 2,873 257 SAP Half-Year Report 2024 32/51 Section C Financial Results This s

256、ection provides insight into the financial results of SAPs reportable segments and of SAP overall,as far as not already covered by previous sections.This includes segment results and income taxes.For more information,see our Consolidated Financial Statements for 2023,Section C Financial Results.(C.1

257、)Results of Segments General Information At year end 2023,SAP had five operating segments.The Applications,Technology&Services(ATS)segment was SAPs only reportable segment.Due to their size,the Emarsys,Taulia,Sustainability,and Business Network segments were non-reportable.In the first quarter of 20

258、24,the non-reportable Business Network segment was dissolved and integrated into the ATS segment.SAP is evolving into a holistically steered cloud company with the help of a cohesive product portfolio and commercialization of product bundles(such as RISE with SAP and GROW with SAP).In the course of

259、this continuous transformation and the resulting changes in Executive Board responsibility in the second quarter of 2024,it was concluded that SAPs Chief Operating Decision Maker(CODM)steers SAP on a consolidated basis.Consequently,with effect from the second quarter of 2024,SAP has a single operati

260、ng segment.Segment Reporting Policies Our management reporting system produces reports that present information about our business activities in a variety of ways,for example,by line of business,geography,and areas of responsibility of individual Board members.Based on these reports,the Executive Bo

261、ard,which is responsible for assessing the performance of our Company and for making resource allocation decisions as our Chief Operating Decision Maker(CODM),evaluates business activities in based on several different results.However,operating results of SAP are reviewed on a Group level by the COD

262、M as a whole.There are no parts of our Company that qualify as separate operating segments under IFRS 8,and our Executive Board assesses the financial performance of our Company on a consolidated basis.Our management reporting system produces a variety of reports that differ due to the currency exch

263、ange rates used in the accounting for foreign-currency transactions and operations,where both actual and constant currency numbers are reported to and used by our CODM.Reports based on actual currencies use the same currency rates that are used in our financial statements,whereas reports based on co

264、nstant-currency report revenues and expenses use the average exchange rates from the previous years corresponding period.We use an operating profit indicator to measure the performance of our operating segments.The accounting policies applied in the measurement of operating segment expenses and prof

265、it differ as follows from the IFRS accounting principles used to determine the operating profit measure in our income statement:The expense measures exclude:Acquisition-related charges such as amortization expense and impairment charges for intangibles acquired in business combinations,including goo

266、dwill impairment charges,and certain standalone acquisitions of intellectual property(including purchased in-process research and development)as well as settlements of pre-existing business relationships in connection with a business combination,and acquisition-related third-party expenses SAP Half-

267、Year Report 2024 33/51 Restructuring expenses Regulatory compliance matter expenses Information about assets and liabilities is not regularly provided to our CODM.Results of Segments millions,unless otherwise stated Q1Q2 2024 Q1Q2 2023 Actual Currency Constant Currency Actual Currency Cloud 8,082 8,

268、131 6,493 Software licenses 432 436 591 Software support 5,621 5,661 5,778 Software licenses and support 6,053 6,097 6,369 Cloud and software 14,134 14,228 12,863 Services 2,195 2,202 2,132 Total segment revenue 16,329 16,430 14,995 Cost of cloud 2,190 2,197 1,876 Cost of software licenses and suppo

269、rt 637 633 665 Cost of cloud and software 2,827 2,830 2,541 Cost of services 1,699 1,700 1,717 Total cost of revenue 4,526 4,530 4,258 Cloud gross profit 5,892 5,934 4,617 Segment gross profit 11,803 11,900 10,737 Other segment expenses 8,330 8,360 7,958 Segment profit(loss)3,473 3,540 2,779 In the

270、first half of 2024,the depreciation and amortization expense decreased 13%(13%at constant currencies),from 537 million to 468 million.For more information about the disaggregation of revenue,see the Notes to the Consolidated Half-Year Financial Statements,Note(A.1).(C.2)Reconciliation of Segment Mea

271、sures to Income Statement millions Q1Q2 2024 Q1Q2 2023 Actual Currency Constant Currency Actual Currency Total segment revenue 16,329 16,430 14,995 Adjustment for currency impact 0 101 0 Total revenue 16,329 16,329 14,995 Total segment profit 3,473 3,540 2,779 Adjustment for currency impact 0 67 0 A

272、djustment for Acquisition-related charges 166 166 177 Restructuring 2,873 2,873 257 Regulatory compliance matter expenses 0 0 170 Operating profit 434 434 2,174 Other non-operating income/expense,net 153 153 116 Financial income,net 2 2 247 Adjustment for gains and losses from equity securities,net

273、123 123 41 Profit before tax 407 407 1,771 SAP Half-Year Report 2024 34/51(C.3)Financial Income,Net In the first half of 2024,finance income mainly consisted of income from gains from disposals and fair value adjustments of equity securities totaling 284 million(first half of 2023:186 million),and i

274、nterest income from loans and receivables,other financial assets(cash,cash equivalents,and current investments)as well as from derivatives amounting to 327 million(first half of 2023:190 million).In the first half of 2024,finance costs were primarily impacted by losses from disposals and fair value

275、adjustments of equity securities amounting to 159 million(first half of 2023:226 million),and interest expense on financial liabilities including lease liabilities as well as negative effects from derivatives amounting to 260 million(first half of 2023:370 million).For more information about our fin

276、ancial income,net,see the Notes to the Consolidated Financial Statements for 2023,Note(C.4).(C.4)Income Taxes We are subject to ongoing tax audits by domestic and foreign tax authorities.Currently,we are in dispute mainly with the German and only a few foreign tax authorities.The German dispute is i

277、n respect of certain secured capital investments,while the few foreign disputes are mainly in respect of the deductibility of intercompany royalty payments and intercompany services.In all cases,we expect that a favorable outcome can only be achieved through litigation.For all of these matters,we ha

278、ve not recorded a provision as we believe that the tax authorities claims have no merit and that no adjustment is warranted.If,contrary to our view,the tax authorities were to prevail in their arguments before the court,we would expect to have an additional expense of approximately 1,991 million(202

279、3:1,815 million)in total(including related interest expenses and penalties of 1,095 million(2023:1,003 million).SAP Half-Year Report 2024 35/51 Section D Invested Capital This section highlights the non-current assets including investments that form the basis of our operating activities.Additions in

280、 invested capital include separate asset acquisitions or business combinations.For more information,see our Consolidated Financial Statements for 2023,Section D Invested Capital.(D.1)Goodwill In the first half of 2024,the Company underwent several changes in its segment structure.Starting in the sec

281、ond quarter of 2024,the Company now has a single operating segment and monitors its goodwill at this level.For more information,see Note(C.1).The 689 million increase in goodwill since December 31,2023,was due to the revaluation of amounts denominated in foreign currencies.The Company evaluates on a

282、n ongoing basis whether there are triggering events that would require an impairment test for goodwill through both qualitative and quantitative analyses.Our assessment of internal and external factors in the first half of 2024,including the change in segment structure and reorganizations which have

283、 no adverse effect,led us to conclude that no triggering events occurred since our annual goodwill impairment test in 2023.No impairment tests were performed in the first half of 2024.(D.2)Property,Plant,and Equipment Property,Plant,and Equipment(Summary)millions 6/30/2024 12/31/2023 Property,plant,

284、and equipment excluding leases 2,925 2,901 Right-of-use assets 1,330 1,375 Total 4,255 4,276 Additions Q1Q2 2024 Q1Q4 2023 Property,plant,and equipment excluding leases 308 626 Right-of-use assets 123 184 Total 431 810 SAP Half-Year Report 2024 36/51 Section E Capital Structure,Financing,and Liquidi

285、ty This section provides information related to how SAP manages its capital structure.Our capital management is based on a high equity ratio,modest financial leverage,a well-balanced maturity profile,and deep debt capacity.For more information,see our Consolidated Financial Statements for 2023,Secti

286、on E Capital Structure,Financing,and Liquidity.(E.1)Total Equity Number of Shares millions Issued Capital Treasury Shares 12/31/2022 1,228.5 61.4 Reissuance under share-based payments 0 2.6 6/30/2023 1,228.5 58.8 12/31/2023 1,228.5 61.3 Reissuance under share-based payments 0 4.6 Purchase 0 5.3 6/30

287、/2024 1,228.5 62.0 In the first half of 2023,we reissued 2.6 million treasury shares to service share-based payment awards under our Move SAP plan.In the first half of 2024,we bought back 5.3 million shares and reissued 4.6 million treasury shares to service share-based payment awards under our Move

288、 SAP plan.Other Components of Equity millions Exchange Differences Cash Flow Hedges Total 12/31/2022 4,015 16 4,031 Other comprehensive income 876 10 866 6/30/2023 3,140 26 3,165 12/31/2023 2,418 9 2,426 Other comprehensive income 1,163 1 1,164 6/30/2024 3,581 10 3,591 SAP Half-Year Report 2024 37/5

289、1(E.2)Liquidity millions 6/30/2024 Nominal Volume Carrying Amount Current Non-Current Current Non-Current Total Bonds 1,450 5,930 1,449 5,296 6,745 Private placement transactions 302 93 303 97 400 Commercial Paper 0 0 0 0 0 Bank loans 0 0 0 0 0 Financial debt 1,752 6,024 1,752 5,393 7,145 Lease liab

290、ilities NA NA 287 1,300 1,587 Other financial liabilities NA NA 233 627 860 Financial liabilities 2,271 7,321 9,592 Financial debt as%of financial liabilities 77 74 74 millions 12/31/2023 Nominal Volume Carrying Amount Current Non-Current Current Non-Current Total Bonds 850 6,521 849 5,932 6,780 Pri

291、vate placement transactions 292 90 294 95 388 Commercial Paper 0 0 0 0 0 Bank loans 0 0 0 0 0 Financial debt 1,143 6,612 1,143 6,026 7,169 Lease liabilities NA NA 294 1,327 1,621 Other financial liabilities NA NA 298 588 886 Financial liabilities 1,735 7,941 9,676 Financial debt as%of financial liab

292、ilities 66 76 74 SAP Half-Year Report 2024 38/51 Section F Management of Financial Risk Factors This section discusses financial risk factors and risk management.In our half-year report,this includes the transfers between levels of the fair value hierarchy.For more information,particularly about our

293、 risk management related to foreign currency exchange rate risk,interest rate risk,equity price risk,credit risk,liquidity risk,and other financial risk factors,see our Consolidated Financial Statements for 2023,Section F Risk Management and Fair Value Disclosures.(F.1)Financial Risk Factors,Financi

294、al Risk Management,and Fair Value Disclosures on Financial Instruments A detailed overview of our other financial instruments,financial risk factors,the management of financial risks,and the determination of fair value as well as the classification of our other financial instruments into the fair va

295、lue hierarchy of IFRS 13 are presented in Note(F.1)and(F.2)in the Consolidated Financial Statements for 2023.We do not disclose the fair value of our financial instruments as at June 30,2024,for the following reasons:For a large number of our financial instruments,their carrying amounts are a reason

296、able approximation of their fair values,and For those financial instruments where the carrying amount differs from fair value,there was no material change in the relation between carrying amount and fair value since December 31,2023.On June 5,2024,SAP and WalkMe Ltd.(“WalkMe”/NASDAQ:WKME)announced t

297、hat the companies had entered into a definitive agreement under which SAP will acquire 100%of WalkMe.The acquisition is subject to customary closing conditions,including the receipt of WalkMe shareholder approval and necessary regulatory clearances.To hedge against EUR-USD fluctuations and thus to s

298、ecure the euro countervalue of the purchase price of approximately US$1.5 billion,we have entered into a deal contingent forward applying cash flow hedge accounting.SAP Half-Year Report 2024 39/51 Section G Other Disclosures This section provides additional disclosures on miscellaneous topics,includ

299、ing information pertaining to other litigation,claims,and legal contingencies,and related party transactions.For more information,see our Consolidated Financial Statements for 2023,Section G Other Disclosures.(G.1)Other Litigation,Claims,and Legal Contingencies We are subject to a variety of claims

300、and lawsuits that arise from time to time in the ordinary course of our business,including proceedings and claims that relate to companies we have acquired.We will continue to vigorously defend against all claims and lawsuits against us.We currently believe that resolving the claims and lawsuits pen

301、ding as at June 30,2024,will neither individually nor in the aggregate have a material adverse effect on our business.Among the claims and lawsuits are the following classes(for more information about these classes,see the Notes to the Consolidated Financial Statements for 2023,Note(G.3).Intellectua

302、l-Property-Related Litigation and Claims For individual cases of intellectual-property-related litigation and claims disclosed in our Integrated Report 2023,there were no significant developments in the first half of 2024.The provisions recorded for intellectual-property-related litigation and claim

303、s continue to be not material.There have also been no significant changes during the first half of 2024 relating to our assessment for contingent liabilities from intellectual-property-related litigation and claims for which no provision has been recognized.Tax-Related Litigation There have been no

304、significant changes in contingent liabilities from non-income tax-related litigation for which no provision has been recognized compared to our Consolidated Financial Statements for 2023,Note(G.3).For more information about our income tax-related litigation,see Note(C.4).Anti-Bribery Matters In Janu

305、ary 2024,following comprehensive and exhaustive investigations,dialogue,and corresponding remediation activities,SAP entered into a final 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 and part

306、ies in South Africa,to resolve the criminal and civil claims against SAP fully and finally.Under this agreement,SAP has been required to make payments amounting to 207 million and will continue to enhance its compliance program,including related internal controls,policies,and procedures,and report t

307、o and cooperate with relevant regulators.As a consequence of the agreement,as at December 31,2023,provisions for fines in regulatory compliance matters totaling 155 million were recognized in our Consolidated Financial Statements for the year 2023 as well as repayments to customers,for which revenue

308、 recognized from contracts with customers have been reversed.A considerable portion of these repayments to customers was eligible to be credited against the fines incurred in the regulatory compliance matters.Significant payments were made in the first half of 2024.The remaining provision as at June

309、 30,2024,amounts to 25 million and is expected to be settled in the second half of 2024.For more information,see the Notes to the Consolidated Financial Statements for 2023,Note(G.3).SAP Half-Year Report 2024 40/51(G.2)Related Party Transactions Certain Executive Board and Supervisory Board members

310、of SAP SE currently hold or have held positions of significant responsibility with other entities(for more information,see the Notes to the Consolidated Financial Statements for 2023,Note(G.4).We have relationships with certain of these entities in the ordinary course of business.On May 15,2024,the

311、Annual General Meeting of Shareholders elected Pekka Ala-Pietil as chairperson of the Supervisory Board as successor to Hasso Plattner,whose term of office expired with effect from that date.As of his election date,Pekka Ala-Pietil became a related party.Subsequently,all parties that were considered

312、 related to SAP due to their connection to and/or their relationship with Hasso Plattner will not be considered as related parties after May 15,2024.This includes transactions after that date as well as outstanding balances and commitments.Executive Board Members Supervisory Board Members Companies

313、Controlled by Supervisory Board Members Associated Entities millions Q1Q2 2024 Q1Q2 2023 Q1Q2 2024 Q1Q2 2023 Q1Q2 2024 Q1Q2 2023 Q1Q2 2024 Q1Q2 2023 Products and services provided NA NA NA 0 0 0 22 9 Products and services received 0 NA 01 11 1 2 50 60 Sponsoring and other financial support provided

314、NA NA NA NA 5 2 NA NA Outstanding balances on 6/30(Vendors)NA NA NA 0 NA 0 3 2 Outstanding balances on 6/30(Customers)NA NA NA 0 NA 0 1 1 Commitments on 6/30 NA NA NA 0 NA 48 NA NA 1 Including services from employee representatives on the Supervisory Board in their capacity as employees of SAP For m

315、ore information about related party transactions,see the Notes to the Consolidated Financial Statements for 2023,Note(G.6).(G.3)Events after the Reporting Period No events have occurred since June 30,2024,that have a material impact on the Companys Consolidated Half-Year Financial Statements.(G.4)Sc

316、ope of Consolidation Entities Consolidated in the Financial Statements Total 12/31/2023 235 Additions 2 Disposals 11 6/30/2024 226 The additions in the first half of 2024 relate to legal entities added in connection with acquisitions and foundations.The disposals are mainly due to liquidations and m

317、ergers of legal entities.For more information about our business combinations and the effect on our Consolidated Financial Statements,see the SAP Integrated Report 2023.Release of the Consolidated Half-Year Financial Statements The Executive Board of SAP SE approved these Consolidated Half-Year Fina

318、ncial Statements on July 21,2024,for submission to the Audit and Compliance Committee of the Supervisory Board and for subsequent issuance.SAP Half-Year Report 2024 41/51 Responsibility Statement To the best of our knowledge,and in accordance with the applicable reporting principles for half-year fi

319、nancial reporting,the Consolidated Half-Year Financial Statements give a true and fair view of the assets,liabilities,financial position,and profit or loss of the SAP Group,and the Consolidated Half-Year Management Report of the SAP Group includes a fair review of the development and performance of

320、the business and the position of the SAP Group,together with a description of the material opportunities and risks associated with the expected development of the SAP Group for the remaining months of the financial year.Walldorf,July 21,2024 SAP SE Walldorf,Baden The Executive Board Christian Klein

321、Muhammad Alam Dominik Asam Dr.Juergen Mueller Scott Russell Thomas Saueressig Gina Vargiu-Breuer Julia White SAP Half-Year Report 2024 42/51 Supplementary Financial Information Financial and Non-Financial Key Facts(IFRS and Non-IFRS)millions,unless otherwise stated Q1 2023 Q2 2023 Q3 2023 Q4 2023 TY

322、 2023 Q1 2024 Q2 2024 Revenues Cloud 3,178 3,316 3,472 3,699 13,664 3,928 4,153%change yoy 24 19 16 20 20 24 25%change constant currency yoy 22 22 23 25 23 25 25 Cloud ERP Suite 2,422 2,562 2,711 2,931 10,626 3,167 3,414%change yoy 35 30 26 28 29 31 33%change constant currency yoy 33 33 34 33 33 32

323、33 Software licenses 276 316 335 838 1,764 203 229%change yoy 13 26 17 8 14 26 28%change constant currency yoy 13 24 14 6 12 25 27 Software support 2,905 2,873 2,872 2,846 11,496 2,829 2,792%change yoy 1 3 5 5 3 3 3%change constant currency yoy 1 1 1 1 1 1 3 Software licenses and support 3,180 3,189

324、 3,208 3,683 13,261 3,031 3,021%change yoy 2 6 6 6 5 5 5%change constant currency yoy 2 4 2 2 3 4 5 Cloud and software 6,358 6,505 6,679 7,382 26,924 6,960 7,175%change yoy 10 5 4 6 6 9 10%change constant currency yoy 8 8 9 10 9 11 10 Total revenue 7,441 7,554 7,744 8,468 31,207 8,041 8,288%change y

325、oy 10 5 4 5 6 8 10%change constant currency yoy 9 8 9 9 9 9 10 Share of more predictable revenue(in%)82 82 82 77 81 84 84 Profits Operating profit(loss)(IFRS)803 1,371 1,723 1,902 5,799 787 1,222 Operating profit(loss)(non-IFRS)1,321 1,457 1,767 1,969 6,514 1,533 1,940%change-yoy 15 14 7 1 1 16 33%c

326、hange constant currency-yoy 15 19 13 5 5 19 35 Profit(loss)after tax(IFRS)403 724 1,272 1,201 3,600 824 918 Profit(loss)after tax(non-IFRS)868 799 1,352 1,302 4,321 944 1,278%change 20 9 13 10 6 9 60 Margins Cloud gross margin(IFRS,in%)70.5 71.1 72.7 71.9 71.6 72.2 73.0 Cloud gross margin(non-IFRS,i

327、n%)70.8 71.4 73.0 72.2 71.9 72.5 73.3 Software license and support gross margin(IFRS,in%)88.6 89.8 90.0 89.8 89.6 89.2 89.7 Software license and support gross margin(non-IFRS,in%)88.9 90.2 90.1 89.8 89.8 89.2 89.7 Cloud and software gross margin(IFRS,in%)79.5 80.3 81.0 80.8 80.4 79.6 80.0 Cloud and

328、software gross margin(non-IFRS,in%)79.9 80.6 81.2 81.0 80.7 79.8 80.2 Gross margin(IFRS,in%)71.0 71.6 72.8 73.3 72.2 71.7 72.6 Gross margin(non-IFRS,in%)71.3 71.9 73.0 73.4 72.4 71.8 72.7 Operating margin(IFRS,in%)10.8 18.2 22.2 22.5 18.6 9.8 14.7 SAP Half-Year Report 2024 43/51 millions,unless othe

329、rwise stated Q1 2023 Q2 2023 Q3 2023 Q4 2023 TY 2023 Q1 2024 Q2 2024 Operating margin(non-IFRS,in%)17.8 19.3 22.8 23.3 20.9 19.1 23.4 Key Profit Ratios Effective tax rate(IFRS,in%)40.5 33.8 27.8 33.6 32.6 16.0 33.8 Effective tax rate(non-IFRS,in%)29.1 33.0 27.1 32.5 30.3 32.4 33.6 Earnings per share

330、,basic(IFRS,in)from continuing operations 0.35 0.62 1.09 1.05 3.11 0.71 0.76 Earnings per share,basic(non-IFRS,in)from continuing operations 0.75 0.69 1.16 1.12 3.72 0.81 1.10 Earnings per share,basic(IFRS,in)1 0.41 2.70 1.09 1.05 5.26 0.71 0.76 Earnings per share,basic(non-IFRS,in)1 0.83 2.40 1.16

331、1.12 5.51 0.81 1.10 Order Entry and current cloud backlog Current cloud backlog 11,148 11,537 12,269 13,745 13,745 14,179 14,803%change yoy 25 21 19 25 25 27 28%change constant currency yoy 25 25 25 27 27 28 28 Share of cloud orders greater than 5 million based on total cloud order entry volume(in%)

332、45 46 49 62 55 52 52 Share of cloud orders smaller than 1 million based on total cloud order entry volume(in%)26 25 21 14 19 21 20 Liquidity and Cash Flow Net cash flows from operating activities 2,311 848 1,124 1,926 6,210 2,757 1,540 Purchase of intangible assets and property,plant,and equipment 2

333、57 156 182 190 785 187 178 Payments of lease liabilities 99 89 78 66 332 78 70 Free cash flow 1,955 604 865 1,670 5,093 2,492 1,291%of total revenue 26 8 11 20 16 31 16%of profit after tax(IFRS)485 83 68 139 141 NA 141 Cash and cash equivalents 8,766 14,142 9,378 8,124 8,124 9,295 7,870 Group liquidity 9,700 14,326 12,122 11,275 11,275 13,411 11,449 Financial debt()10,751 10,146 8,445 7,755 7,755