EQS-Adhoc: SAP SE: SAP Updates its Ambition 2025 and Announces Transformation Program for 2024
EQS-Ad-hoc: SAP SE / Key word(s): Restructure of Company/Change in Forecast Walldorf, Germany – January 23, 2024. SAP SE (NYSE: SAP) announces plans to implement a company-wide transformation program including restructuring for 2024. In addition, SAP is updating its ambition for 2025. The update reflects the strong performance in the fourth quarter 2023, the updated non-IFRS definition of profit measures, as well as the anticipated benefits from the new program. The updated 2025 non-IFRS operating profit ambition of approximately €10.0 billion now reflects share-based compensation expenses of approximately €2 billion. Based on SAP’s analysis, this profit ambition is materially ahead of corresponding analyst consensus estimates. In addition, the updated 2025 free cash flow ambition of approximately €8.0 billion is ahead of the latest analyst consensus.
Ambition 2025 The update of the non-IFRS operating profit ambition includes a reduction by approximately €2 billion due to the inclusion of share-based compensation expenses under the updated non-IFRS definition, as well as an increase of approximately €0.5 billion due to anticipated incremental efficiency gains from the transformation program. By 2025, SAP now expects:
SAP continues to expect:
The 2025 ambition is based on an exchange rate of 1.10 USD per EUR.
2024 Transformation Program: Focus on scalability of operations and key strategic growth areas In 2024, SAP will further increase its focus on key strategic growth areas, in particular Business AI. It also intends to transform its operational setup to capture organizational synergies, AI-driven efficiencies and to prepare the company for highly scalable future revenue growth. To this end and to ensure that SAP’s skill-set and resources continue to meet future business needs, SAP plans to execute a company-wide restructuring program in 2024. The majority of the approximately 8,000 affected positions is expected to be covered by voluntary leave programs and internal re-skilling measures. Reflecting re-investments into strategic growth areas, SAP expects to exit 2024 at a headcount similar to current levels. Restructuring expenses are preliminarily projected at around €2 billion, the vast majority of which is expected to be recognized in the first half of 2024, impacting IFRS operating profit. Excluding restructuring expenses, the program is expected to provide only a minor cost benefit in 2024. Expected cost savings and re-investments are fully reflected in SAP’s 2024 outlook and the updated 2025 non-IFRS operating profit- and free cash flow ambition.
Financial Outlook 2024 SAP’s business outlook, which includes the financial outlook 2024 as well as the financial ambition 2025, is based on SAP’s updated non-IFRS definition of profit measures which, beginning in 2024, include share-based compensation expenses and exclude gains and losses from equity securities, net. Furthermore, the 2024 outlook and 2025 ambition for free cash flow assume all payouts associated with the planned restructuring program will be completed in 2024.
For 2024, SAP expects:
While SAP’s 2024 financial outlook is at constant currencies, actual currency reported figures are expected to be impacted by currency exchange rate fluctuations as the Company progresses through the year.
SAP will publish its fourth quarter and full year 2023 results shortly after this release.
Contact: Anthony Coletta, Chief Investor Relations Officer
End of Inside Information Information and Explanation of the Issuer to this announcement: Webcast SAP senior management will discuss these items in more detail during its financial analyst conference call on Wednesday, January 24th at 07:00 AM (CET) / 06:00 AM (GMT) / 1:00 AM (EST) / Tuesday, January 23rd 10:00 PM (PST), which will be webcast on the Company’s website at https://www.sap.com/investor and will be available for replay.
23-Jan-2024 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. |
Language: | English |
Company: | SAP SE |
Dietmar-Hopp-Allee 16 | |
69190 Walldorf | |
Germany | |
Phone: | +49 (0)6227 - 74 74 74 |
Fax: | +49 (0)6227 - 75 75 75 |
E-mail: | investor@sap.com |
Internet: | www.sap.com |
ISIN: | DE0007164600 |
WKN: | 716460 |
Indices: | DAX, TecDAX |
Listed: | Regulated Market in Berlin, Frankfurt (Prime Standard), Stuttgart; Regulated Unofficial Market in Dusseldorf, Hamburg, Hanover, Munich, Tradegate Exchange; NYSE |
EQS News ID: | 1821441 |
End of Announcement | EQS News Service |
|
1821441 23-Jan-2024 CET/CEST
Boersengefluester.de (BGFL) provides an overview of the key figures on sales, earnings, cash flow and dividends to help you better assess the fundamental development of the respective companies. All information is entered manually in our database - the source is the respective annual reports. All estimates for future figures are provided by BGFL.
The most important financial data at a glance | ||||||||
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024e | ||
Sales1 | 24.708,00 | 27.553,00 | 27.338,00 | 27.842,00 | 30.871,00 | 31.207,00 | 29.500,00 | |
EBITDA1,2 | 7.067,00 | 6.345,00 | 8.454,00 | 6.431,00 | 6.566,00 | 7.160,00 | 6.260,00 | |
EBITDA-Margin3 | 28,60 | 23,03 | 30,92 | 23,10 | 21,27 | 22,94 | 21,22 | |
EBIT1,4 | 5.703,00 | 4.495,00 | 6.623,00 | 4.656,00 | 4.670,00 | 5.787,00 | 6.200,00 | |
EBIT-Margin5 | 23,08 | 16,31 | 24,23 | 16,72 | 15,13 | 18,54 | 21,02 | |
Net Profit (Loss)1 | 4.088,00 | 3.370,00 | 5.283,00 | 5.376,00 | 1.708,00 | 5.964,00 | 3.650,00 | |
Net-Margin6 | 16,55 | 12,23 | 19,33 | 19,31 | 5,53 | 19,11 | 12,37 | |
Cashflow1,7 | 4.302,00 | 3.496,00 | 7.194,00 | 6.223,00 | 5.647,00 | 6.332,00 | 0,00 | |
Earnings per share8 | 3,42 | 2,78 | 4,35 | 4,46 | 1,95 | 5,20 | 5,90 | |
Dividend per share8 | 1,50 | 1,58 | 1,85 | 2,45 | 2,05 | 2,20 | 2,40 |
1 in Mio. Euro; 2 EBITDA = Earnings before interest, taxes, depreciation and amortisation; 3 EBITDA in relation to sales; 4 EBIT = Earnings before interest and taxes; 5 EBIT in relation to sales; 6 Net profit (-loss) in relation to sales; 7 Cashflow from operations; 8 in Euro; Source: boersengefluester.de
Auditor: BDO
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INVESTOR-INFORMATION | ||||||
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SAP | ||||||
WKN | ISIN | Legal Type | Marketcap | IPO | Recommendation | Plus Code |
716460 | DE0007164600 | SE | 290.848,38 Mio € | 04.11.1988 | Kaufen | 8FXC7JVR+GG |
PE 2025e | PE 10Y-Ø | BGFL-Ratio | Shiller-PE | PB | PCF | KUV |
37,58 | 31,83 | 1,18 | 63,92 | 6,74 | 45,93 | 9,32 |
Dividend '2022 in € |
Dividend '2023 in € |
Dividend '2024e in € |
Div.-Yield '2024e in % |
2,05 | 2,20 | 2,40 | 1,01% |
Annual General Meeting | Q1-figures | Q2-figures | Q3-figures | Annual press conference |
13.05.2025 | 22.04.2025 | 22.07.2024 | 21.10.2024 | 29.02.2024 |
Distance 60-days-line | Distance 200-days-line | Performance YtD | Performance 52 weeks | IPO |
+7,03% | +21,37% | +69,74% | +71,26% | +2.123,00% |
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