SAP Cloud Momentum Accelerates Significantly

• Current Cloud Backlog Up 24% (Up 22% At Constant Currencies)
• S/4HANA Current Cloud Backlog Up 60% (Up 58% At Constant Currencies)
• Cloud Revenue Up 20% (Up 20% At Constant Currencies)
• IFRS Operating Profit Down 15%; Non-IFRS Operating Profit Up 2% (Up 2% At Constant Currencies)
• Raises Full Year Revenue and Profit Outlook On The Basis of Strong Third Quarter

Business Update Third Quarter 2021

Businesses around the world are reevaluating their business models with increased urgency given the dramatic changes due to the pandemic and the ongoing focus on digital transformation. Customers are choosing SAP for its clearly differentiated capabilities. In addition to helping customers manage their technical migrations, SAP is helping customers redefine and opti-mize their core end-to-end business processes. This expertise is based on SAP’s unmatched knowledge of industry best practices from working with customers of all sizes across industries and geographies. This is reflected in SAP’s strong third quarter results which were above market expectations.
SAP is seeing continued strong demand and adoption of its ‘RISE with SAP’ offering which customers of all sizes, including an increasing number of large clients, are selecting to manage their business transformation. As more customers adopt this holistic subscription offering, software licenses revenue decreased as anticipated.
SAP is seeing strong growth in current cloud backlog across its cloud portfolio, in particular with S/4HANA Cloud. SAP’s cloud revenue growth also accelerated sequentially.

Highlights

• ‘RISE with SAP’ continued to gain traction after a successful launch in January. SAP saw strong demand from companies of all sizes and closed deals with more than 300 customers in the third quarter. Large customers such as Asda Stores Ltd. and EG Group selected ‘RISE with SAP’. Additional wins included Cirque du Soleil, Philips Domestic Appliances Neth-erlands, HCL, Röhm, Etihad Water and Electricity, Tate & Lyle Americas, KTM Fahrrad, Ingram Micro, and Sky Italia.
• More than 500 S/4HANA customers were added in the quarter, taking total adoption to more than 17,500 customers, up 16% year over year, of which more than 11,400 are live. In the third quarter, approximately 60% of the additional S/4HANA customers were net new.
• Signavio continued to show outstanding performance as part of SAP’s Business Process Intelligence (BPI) segment. Cur-rent cloud backlog grew in triple digits. SAP’s BPI solutions are key to our customers’ business transformation and accel-eration to the cloud. DB Schenker and many others chose SAP BPI solutions in the third quarter.
• Business Technology Platform, SAP’s PaaS offering, is the foundation of the Intelligent Enterprise, providing a single plat-form for integration and extensibility across the SAP portfolio and non-SAP solutions, as well as deriving insights from data. Gartner named SAP a Leader in its Magic Quadrant for its Enterprise Integration PaaS report for the second year in a row, ahead of key competitors. Current cloud backlog grew in strong double digits. Dufry International, Yamaha Corpo-ration, SoftBank, Office Depot Mexico, and Reckitt chose this offering in the third quarter.
• SAP aims to make sustainability profitable and profitability sustainable, with solutions that provide unparalleled levels of transparency and understanding across data and processes. SAP launched SAP Product Footprint Management, which will help customers reduce their supply-chain carbon footprints. Forthcoming products include SAP Responsible Design and Production, which is designed to enable customers to build sustainable outcomes into product design, and SAP Sus-tainability Control Tower, which lets companies report effectively on their progress to net zero.
• Key customer wins across SAP’s solutions portfolio included: Continental, Adidas, Bayer, Robert Bosch, U.S. Department of Defense, Siemens Energy, University of Florida, VMware, The Football Association, FAW-Volkswagen Automotive, and People’s Insurance Company of China (PICC). Lycamobile, E.ON, Atos, and Generali China Life Insurance all went live on SAP solutions in the third quarter.
• Google Cloud and SAP partnered to accelerate business transformations in the cloud. The expanded partnership will help customers execute business transformations, migrate critical business systems to the cloud and augment existing busi-ness systems.
• In September SAP and Dediq launched SAP Fioneer, a joint venture for the financial services industry. SAP Fioneer will help banking and insurance companies meet their needs for speed, scalability and cost-efficiency.
• Qualtrics closed its acquisition of Clarabridge, a leader in omnichannel conversational analytics capabilities, on October 1st. This will further accelerate Qualtrics’ growth and position as the world’s #1 experience management platform.