6-K - SAP - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

July 26, 2022

Commission file number:

1-14251

SAP SE

(Exact name of registrant as specified in its charter)

SAP EUROPEAN COMPANY

(Translation of registrant's name into English)

Dietmar-Hopp-Allee 16

69190 Walldorf

Federal Republic of Germany

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F	[X]	Form 40-F	[ ]

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes	[ ]	No	[X]

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_______.

SAP SE

FORM 6-K

On July 21, 2022, SAP SE, (“SAP"), issued a quarterly statement (the “Quarterly Statement”) announcing SAP’s financial results for the second quarter ended June 30, 2022. The Quarterly Statement is attached as Exhibit 99.1 hereto and incorporated by reference herein.

On July 26, 2022, SAP filed a half-year report with Deutsche Boerse AG for the first half ended June 30, 2022 (the “Half-Year Report”). The Half-Year Report is attached as Exhibit 99.2 hereto and incorporated by reference herein.

The Quarterly Statement and the Half-Year Report disclose certain non-IFRS measures. These measures are not prepared in accordance with IFRS and are therefore considered non-IFRS financial measures. The non-IFRS financial measures that we report should be considered in addition to, and not as substitutes for or superior to, revenue, operating income, cash flows, or other measures of financial performance prepared in accordance with IFRS.

Please refer to Explanations of Non-IFRSMeasures online (www.sap.com/about/investor/index.epx) for further information regarding the non-IFRS measures.

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission (the "SEC"), including SAP's most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

This filing is also intended to fulfil the NYSE rules set forth in Sections 103.00 and 203.03.

EXHIBITS

Exhibit No.	Exhibit
99.1	Quarterly<br>Statement dated July 21, 2022
99.2	Half-Year Report dated July 21, 2022

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SAP SE
(Registrant)
By:	/s/<br> Christopher Sessar
Name:	Dr.<br> Christopher Sessar
---	---
Title:	Chief Accounting Officer
By:	/s/<br> Christian Kastler
---	---
Name:	Christian Kastler
---	---
Title:	Co-Head of Corporate Accounting<br> and Reporting

Date: July 26, 2022

EXHIBIT INDEX

Exhibit No.	Exhibit
99.1	Quarterly Statement dated July 21, 2022
99.2	Half-Year Report dated July 21, 2022

Exhibit 99.1

SAPAnnounces Q2 2022 Results

· Cloud revenue up 34% and up 24% at constant currencies to become the largest revenue stream

· Current cloud backlog exceeds €10 billion, up 34% and up 25% at constant currencies

· SAP S/4HANA current cloud backlog extends its growth trend, up 100% and up 87% at constant currencies

· Cloud gross profit up 39% (IFRS), up 38% (non-IFRS) and up 28% (non-IFRS at constant currencies), leading to a strong cloud gross margin expansion

· IFRS operating profit down 32%, non-IFRS operating profit down 13% and down 16% at constant currencies, primarily due to the impact of the war in Ukraine

· SAP reaffirms 2022 revenue and free cash flow outlook, updates operating profit outlook range

in € millions, unless otherwise stated

	ChristianKlein, CEO: “As our Q2 results		Luka Mucic, CFO: “This quarter again proves
demonstrate,<br>SAP’s portfolio is more relevant than ever. Our transition to the cloud is ahead of schedule and we have exceeded topline expectations,<br>with cloud revenue becoming SAP’s largest revenue stream. Our pipeline is strong, and we are winning market share underpinned by<br>the very strong 100% growth of S/4HANA current cloud backlog.”		that<br> our strategy is resonating, even in an increasingly challenging external environment. We<br> continued to deliver strong topline growth, exceeding revenue expectations and increasing<br> cloud profitability. This quarter, we have recognized the main impact of the war in Ukraine.<br> We believe that we are now able to capitalize on our substantial growth investments of the<br> last 18 months, by delivering sustained growth and profitability expansion.”

Walldorf,Germany – July 21, 2022. SAP SE (NYSE: SAP) today announced its financial results for the second quarter ended June 30, 2022.

FinancialPerformance
Groupresults at a glance – Second quarter 2022
---
	IFRS			Non-IFRS^1^
---	---	---	---	---	---	---	---
€<br> million, unless otherwise stated	Q2 2022	Q2<br> 2021	∆<br> in %	Q2 2022	Q2<br> 2021	∆<br> in %	∆<br> in %<br><br>const.<br><br>curr.
Cloud<br> revenue	3,056	2,276	34	3,056	2,276	34	24
Software<br> licenses	426	650	–34	426	650	–34	–38
Software<br> support	2,977	2,823	5	2,977	2,823	5	0
Software<br> licenses and support revenue	3,403	3,474	–2	3,403	3,474	–2	–7
Cloud<br> and software revenue	6,459	5,750	12	6,459	5,750	12	5
Total<br> revenue	7,517	6,669	13	7,517	6,669	13	5
Share<br> of more predictable revenue (in %)	80	76	4pp	80	76	4pp
Operating<br> profit (loss)	673	984	–32	1,680	1,922	–13	–16
Profit<br> (loss) after tax	203	1,449	–86	1,093	2,214	–51
Earnings<br> per share - Basic (in €)	0.29	1.15	–75	0.96	1.75	–45
Earnings<br> per share - Diluted (in €)	0.28	1.15	–75
Net<br> cash flows from operating activities	268	686	–61
Free<br> cash flow				–86	403	<-100
Number<br> of employees (FTE, June 30)	110,409	103,876	6

^1^For a breakdown of the individual adjustments see table “Non-IFRS Adjustments by Functional Areas” in this Quarterly Statement.

Due to rounding, numbers may not add up precisely.

Group results at a glance – Six months ended June 2022
	IFRS			Non-IFRS^1^
---	---	---	---	---	---	---	---
€<br> million, unless otherwise stated	Q1–Q2<br><br> <br>2022	Q1–Q2<br><br> <br>2021	∆<br> in %	Q1–Q2<br><br> <br>2022	Q1–Q2<br><br> <br>2021	∆<br> in %	∆<br> in %<br><br>const.<br><br>curr.
Cloud<br> revenue	5,876	4,421	33	5,876	4,421	33	25
Software<br> licenses	743	1,133	–34	743	1,133	–34	–38
Software<br> support	5,900	5,624	5	5,900	5,624	5	0
Software<br> licenses and support revenue	6,643	6,757	–2	6,643	6,757	–2	–6
Cloud<br> and software revenue	12,519	11,178	12	12,519	11,178	12	6
Total<br> revenue	14,594	13,017	12	14,594	13,017	12	6
Share<br> of more predictable revenue (in %)	81	77	4pp	81	77	4pp
Operating<br> profit (loss)	1,726	1,944	–11	3,358	3,660	–8	–12
Profit<br> (loss) after tax	835	2,519	–67	2,259	3,934	–43
Earnings<br> per share - Basic (in €)	0.92	2.03	–55	1.96	3.14	–37
Earnings<br> per share - Diluted (in €)	0.91	2.03	–55
Net<br> cash flows from operating activities	2,750	3,771	–27
Free<br> cash flow				2,079	3,251	–36
Number<br> of employees (FTE, June 30)	110,409	103,876	6

^1^For a breakdown of the individual adjustments see table “Non-IFRS Adjustments by Functional Areas” in this Quarterly Statement.

Due to rounding, numbers may not add up precisely

2/31

CloudPerformance – Second quarter 2022
	IFRS		Non-IFRS^1^
---	---	---	---	---	---
€<br> millions, unless otherwise stated	Q2 2022	∆<br> in %	Q2 2022	∆<br> in %	∆<br> in %<br><br> <br>constant<br><br>currency
Current Cloud Backlog
Total^2^	NA	NA	10,403	34	25
Thereof<br> SAP S/4HANA^2^	NA	NA	2,258	100	87
Cloud Revenue
SaaS^3^	2,409	35	2,409	35	24
PaaS^4^	389	49	389	49	40
IaaS^5^	257	14	257	14	7
Total	3,056	34	3,056	34	24
Thereof<br> SAP S/4HANA	472	84	472	84	72
Thereof<br> Qualtrics	279	61	279	61	43
Cloud Gross Profit
SaaS^3^	1,753	41	1,813	40	28
PaaS^4^	310	47	310	47	41
IaaS^5^	70	–12	73	–11	–6
Total	2,132	39	2,196	38	28
Thereof<br> Qualtrics	211	52	247	54	37
Cloud Gross Margin (in %)
SaaS^3^ (in<br> %)	72.8	3.1<br> pp	75.2	2.6<br> pp	2.6<br> pp
PaaS^4^ (in<br> %)	79.5	–1.2<br> pp	79.6	–1.2<br> pp	0.5<br> pp
IaaS^5^ (in<br> %)	27.1	–8.1<br> pp	28.5	–8.2<br> pp	–4.6<br> pp
Total	69.8	2.3 pp	71.9	1.8 pp	2.3 pp
Thereof<br> Qualtrics	75.8	–4.4pp	88.6	–3.8<br> pp	–3.9<br> pp

^1^For a breakdown of the individual adjustments, see table „Non-IFRS Adjustments by Functional Areas” in this Quarterly Statement.

^2^As this is an order entry metric, there is no matching IFRS equivalent.

^3^Software as a service

^4^Platform as a service

^5^Infrastructure as a service

Due to rounding, numbers may not add up precisely

3/31

CloudPerformance – Six months ended June 2022
	IFRS		Non-IFRS^1^
---	---	---	---	---	---
€<br> millions, unless otherwise stated	Q1-Q2 2022	∆<br> in %	Q1-Q2 2022	∆<br> in %	∆<br> in %<br><br> <br>constant<br><br>currency
Current Cloud Backlog
Total^2^	NA	NA	10,403	34	25
Thereof<br> SAP S/4HANA^2^	NA	NA	2,258	100	87
Cloud Revenue
SaaS^3^	4,644	33	4,644	33	25
PaaS^4^	739	50	739	50	43
IaaS^5^	492	12	492	12	6
Total	5,876	33	5,876	33	25
Thereof<br> SAP S/4HANA	876	81	876	81	71
Thereof<br> Qualtrics	548	65	548	65	50
Cloud Gross Profit
SaaS^3^	3,343	38	3,453	36	27
PaaS^4^	583	46	583	46	41
IaaS^5^	129	–13	134	–12	–9
Total	4,054	36	4,170	35	27
Thereof<br> Qualtrics	418	60	489	59	45
Cloud Gross Margin (in %)
SaaS^3^ (in<br> %)	72.0	2.3<br> pp	74.4	1.8<br> pp	1.6<br> pp
PaaS^4^ (in<br> %)	78.8	–1.9<br> pp	78.8	–2.0<br> pp	–0.9<br> pp
IaaS^5^ (in<br> %)	26.2	–7.6<br> pp	27.3	–7.7<br> pp	–5.0<br> pp
Total	69.0	1.7 pp	71.0	1.2 pp	1.4 pp
Thereof<br> Qualtrics	76.3	–2.1pp	89.1	–3.2<br> pp	–3.3<br> pp

^1^For a breakdown of the individual adjustments, see table „Non-IFRS Adjustments by Functional Areas” in this Quarterly Statement.

^2^As this is an order entry metric, there is no matching IFRS equivalent.

^3^Software as a service

^4^Platform as a service

^5^Infrastructure as a service

Due to rounding, numbers may not add up precisely

The Q1-Q2 2022 results were also impacted by other effects. For details, please refer to the disclosures on page 31 of this document.

FinancialHighlights

Current cloud backlog exceeded €10 billion for the first time and was up 34% to €10.40 billion and up 25% at constant currencies, accelerating from 23% at constant currencies in the first quarter and demonstrating a strong foundation of future cloud revenue.

Driven by double-digit growth across the SaaS and PaaS portfolio, cloud revenue was up 34% to €3.06 billion, up 24% at constant currencies.

Our cloud gross margin was up 2.3 percentage points to 69.8% (IFRS) and up 1.8 percentage points to 71.9% (non-IFRS). This was driven by a strong increase in our SaaS margin, despite increased investments into our next generation cloud delivery program. Revenue growth, alongside cloud gross margin expansion, drove strong cloud gross profit growth of 39% (IFRS), 38% (non-IFRS) and 28% (non-IFRS at constant currencies).

IFRS operating profit decreased 32% to €673 million and IFRS operating margin decreased by 5.8 percentage points to 8.9%. Non-IFRS operating profit was down 13% to €1.68 billion and decreased 16% at constant currencies. Non-IFRS operating margin decreased by 6.5 percentage points to 22.4% and was down by 5.8 percentage points at constant

4/31

currencies. This was mainly driven by reduced contribution from software licenses revenue, as well as significant bad debt expenses related to the war in Ukraine. In addition, IFRS operating profit was affected by restructuring expenses of €130 million, primarily incurred due to the exit from Russia and Belarus. Estimated immediate financial impacts of the war in Ukraine lowered IFRS operating profit growth by 28 percentage points, non-IFRS operating profit growth by 8 percentage points and non-IFRS operating profit growth at constant currencies by 6 percentage points.

IFRS earnings per share decreased 75% to €0.29 and non-IFRS earnings per share decreased 45% to €0.96. The year-over-year decline of earnings per share reflects a contribution to financial income by Sapphire Ventures that, due to current market conditions, was lower than in the same period last year. Our effective tax rate was 62.2% (IFRS) and 29.3% (non-IFRS). The year-over-year effective tax rate increase mainly resulted from changes in tax exempt income and non-deductible expenses. For non-IFRS, the changes in non-deductible expenses do not apply due to respective adjustments of pre-tax figures.

Free cash flow for the first six months was down 36% to €2.08 billion. The decrease versus last year is mainly attributable to the development of profitability and impacts from working capital due to SAP’s continuing move to the cloud. In the second half-year, we expect a more favorable cash flow development due to lower cash taxes and better profitability. We are therefore reiterating our free cash flow outlook for the year.

On January 13, SAP announced a new share repurchase program to support the transition of SAP’s share-based compensation programs to equity settlement, which was completed on April 29. SAP had repurchased 10,004,763 shares at an average price of €99.63 with a purchased value of approximately €997 million. In addition, on July 21, SAP announced another share buyback program of approximately €500 million. Repurchased shares will primarily be used to service awards granted under share-based compensation plans for employees.

Impactof War in Ukraine

In the first six months, SAP’s business was impacted by the war in Ukraine and SAP’s decision to wind down its business operations in Russia and Belarus.

In the second quarter current cloud backlog was approximately €64 million lower due to the termination of existing cloud engagements, reducing current cloud backlog growth by approximately 1 percentage point at constant currencies. IFRS and non-IFRS operating profit were lowered mainly due to reduced software licenses and support revenues and bad debt reserves recorded on trade receivables. IFRS operating profit was additionally affected by restructuring expenses of approximately €120 million incurred due to severance payments to employees in Russia and Belarus and further impairments of assets. The increase of restructuring expenses versus prior expectations is due to the appreciation of the Russian ruble over the past quarter. The overall impact on IFRS operating profit was approximately €280 million (first six months: approximately €350 million) and on non-IFRS operating profit approximately €160 million (first six months: approximately €230 million).

For the fiscal year, we expect a total revenue impact of approximately €300 million at constant currencies from lack of new business and discontinuation of existing business. For non-IFRS operating profit we expect an impact of approximately €350 million at constant currencies from the revenue gaps mentioned above and other expense items.

Other impacts due to this rapidly evolving situation are currently unknown and could potentially subject our business to materially adverse consequences should the situation escalate beyond its current scope.

BusinessHighlights
More<br>than 650 customers chose SAP S/4HANA in the quarter, increasing total adoption to approximately 20,000 customers,<br>up 15% year over year, of which more than 14,500 are live. In the second quarter, more than 60% of the additional SAP S/4HANA customers<br>were net new.<br><br><br><br><br><br><br><br>In<br>the second quarter, customers around the globe chose “RISE<br>with SAP” to drive end-to-end business transformation, including ABB Information Systems, Bridgestone Australia, Capitec Bank, EisnerAmper,<br>Hisense Group, Mitsubishi Materials Corporation, Moderna, Pitney Bowes, RWE, Sumitomo Rubber Industries, Zoomlion. Customers continue<br>to expand their SAP landscape: Microsoft invested in “RISE with SAP”, while GlobalFoundries, HeidelbergCement, Malaysia Airlines,<br>and Mapletree Investments combined the “RISE with SAP” offering with further solutions.<br><br><br><br><br><br>Key customer wins across SAP’s solution<br>portfolio included: ALTANA, Analog Devices, ASUS, BeiGene, Coop Genossenschaft, Corning, Ericsson, Fisker Inc., FUNKE Mediengruppe, Kyndryl,<br>Moët Hennessy, Persán, Positivo
---

BusinessHighlights

More than 650 customers chose SAP S/4HANA in the quarter, increasing total adoption to approximately 20,000 customers, up 15% year over year, of which more than 14,500 are live. In the second quarter, more than 60% of the additional SAP S/4HANA customers were net new. In the second quarter, customers around the globe chose “RISE with SAP” to drive end-to-end business transformation, including ABB Information Systems, Bridgestone Australia, Capitec Bank, EisnerAmper, Hisense Group, Mitsubishi Materials Corporation, Moderna, Pitney Bowes, RWE, Sumitomo Rubber Industries, Zoomlion. Customers continue to expand their SAP landscape: Microsoft invested in “RISE with SAP”, while GlobalFoundries, HeidelbergCement, Malaysia Airlines, and Mapletree Investments combined the “RISE with SAP” offering with further solutions. Key customer wins across SAP’s solution portfolio included: ALTANA, Analog Devices, ASUS, BeiGene, Coop Genossenschaft, Corning, Ericsson, Fisker Inc., FUNKE Mediengruppe, Kyndryl, Moët Hennessy, Persán, Positivo

---

5/31

Tecnologia, Sportradar, Votorantim, Wieland-Werke. Antonio Puig, CONA Services, HCL Technologies, and Wittenstein all went live on SAP solutions in the second quarter. SAP’s cloud revenue performance for the quarter was strong across all regions. Germany had an outstanding cloud revenue performance while the U.S., Brazil, Japan, India and Switzerland were particularly strong. On May 4, SAP and Google Cloud announced an expansion of their relationship, unveiling new integrations between Google Workspace and SAP’s flagship cloud ERP, SAP S/4HANA Cloud. On May 11, SAP and IBM announced the latest milestone in their long-standing partnership as IBM undertakes one of the world’s largest corporate transformation projects based on SAP ERP software, designed to fuel the company’s growth and better support its clients. On May 18, SAP announced that the Annual General Meeting of Shareholders of SAP SE approved all proposals of the Executive Board and Supervisory Board. Prof. Dr. h. c. mult. Hasso Plattner, Dr. Rouven Westphal and Dr. Gunnar Wiedenfels were reelected and Jennifer Xin-Zhe Li was elected to the Supervisory Board. With these elections, the Supervisory Board has reached gender parity. In addition, the compensation report was approved and to ensure a smooth transition between auditors, KPMG, for fiscal year 2022, and the new auditor, BDO, for fiscal year 2023, were elected. Furthermore, the dividend proposal of €2.45 per share for fiscal year 2021 was approved. This amount includes a special dividend of €0.50 to mark the Company’s 50th anniversary.

SegmentResults at a Glance

At the beginning of 2022, the Services segment was integrated into the former Applications, Technology & Support segment which was re-named to Applications, Technology & Services.

Therefore, SAP now has two reportable segments: the Applications, Technology & Services segment and the Qualtrics segment.

In addition, certain marketing costs that we primarily incur for product and solution-specific activities in the Applications, Technology & Services segment are now presented in the results of this segment and are no longer allocated to SAP’s corporate functions.

SegmentPerformance Second Quarter 2022
€<br> million, unless otherwise stated<br><br> <br>(Non-IFRS)	Applications, Technology & Services^1^			Qualtrics
---	---	---	---	---	---	---
	Actual<br><br> <br>Currency	∆<br> in %	∆<br> in %<br><br> <br>const.<br> curr.	Actual<br><br> <br>Currency	∆<br> in %	∆<br> in %<br><br> <br>const.<br> curr.
Cloud<br> revenue	2,704	31	22	279	61	43
Segment<br> revenue	7,109	11	4	330	57	39
Segment<br> profit (loss)	2,094	–11	–15	17	25	45
Cloud<br> gross margin (in %)	69.5	1.3pp	2.0pp	88.6	–3.8pp	–3.9pp
Segment<br> margin (in %)	29.5	–7.4pp	–6.7pp	5.1	–1.3pp	0.2pp

^1^Segment information for comparative prior periods were restated to conform with the new segment composition.

SAP’s two reportable segments showed the following performance:

Applications,Technology & Services (AT&S)

Segment revenue in AT&S was up 11% to €7.11 billion year over year, up 4% at constant currencies. Segment performance was mainly due to strong Cloud Revenue growth, driven by SAP S/4HANA as well as Business Technology Platform. Software licenses revenue decreased due to the shift to the cloud as more customers are adopting our ‘RISE with SAP’ offering. Segment support revenue was up 5% to €2.98 billion year over year and flat at constant currencies.

6/31

Qualtrics

Qualtrics segment revenue was up 57% to €330 million year over year, up 39% at constant currencies. The continued strong growth was driven by robust renewal rates and expansions. LINE Plus, Merck KGaA, the New York City Department of Education, PGA TOUR, PNC Financial Services Group, Progress Residential, Scarlet Health, Tata Digital, Toyota North America, and Venues NSW, among others, selected Qualtrics Experience Management Solutions.

BusinessOutlook 2022

SAP is executing on its cloud-led strategy, which is driving accelerating cloud growth through both new business and cloud adoption by existing customers. The pace and scale of SAP’s cloud momentum places the Company well on track towards its mid-term ambition.

FinancialOutlook

For 2022, SAP now expects:

€7.6 – 7.9 billion non-IFRS operating profit at constant currencies (2021: €8.23 billion), down 4% to 8% at constant currencies. The updated non-IFRS operating profit outlook range reflects the expected 2022 non-IFRS operating profit impact of approximately €350 million at constant currencies from the war in Ukraine and a potential continued marked decline of software licenses revenue. The previous range was €7.8 – 8.25 billion at constant currencies.

Despite the expected total revenue impact of approximately €300 million at constant currencies of the war in Ukraine and a further accelerated move of our customers from upfront software licenses revenue to the cloud in the current macro-environment, SAP continues to expect for 2022:

·	€11.55<br> – 11.85 billion cloud revenue at constant currencies (2021: €9.42 billion), up<br> 23% to 26% at constant currencies.
·	€25.0<br> – 25.5 billion cloud and software revenue at constant currencies (2021: €24.08<br> billion), up 4% to 6% at constant currencies.
---	---
·	The<br> share of more predictable revenue (defined as the total of cloud revenue and software support<br> revenue) is expected to reach approximately 78% (2021: 75%).
---	---
·	Free<br> cash flow above €4.5 billion (2021: €5.01 billion).
---	---

SAP is also updating its full-year 2022 effective tax rate outlook (IFRS) to 34.0% to 38.0% (previously: 28.0% to 32.0%). The adjustment mainly results from an updated projection of non-deductible expenses and of the lower 2022 financial income contribution of Sapphire Ventures given current market conditions. As the updated non-deductible expenses are not included in non-IFRS, SAP continues to anticipate a full-year 2022 effective tax rate (non-IFRS) of 23.0% to 27.0% but expects to be at the upper end of this range.

While SAP’s full-year 2022 business 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. See the table below for the Q3 and FY 2022 expected currency impacts.

ExpectedCurrency Impact Assuming June 2022 Rates Apply for the Rest of the Year
In<br> percentage points	Q3 2022	FY 2022
---	---	---
Cloud<br> revenue growth	+8pp<br> to +10pp	+7pp<br> to +9pp
Cloud<br> and software revenue growth	+5pp<br> to +7pp	+4pp<br> to +6pp
Operating<br> profit growth (non-IFRS)	+3.5pp<br> to +5.5pp	+2.5pp<br> to +4.5pp

Non-FinancialOutlook

SAP now expects the Employee Engagement Index to be in a range of 80% to 84% in 2022 (previously: 84% to 86%).

7/31

In 2022, SAP continues to expect:

■	a<br> Customer Net Promoter Score of 11 to 15 (2021: 10)
■	Net<br> carbon emissions of 70 kt (2021: 110 kt)
---	---

Ambition2025

SAP reiterates its mid-term ambition published in its Q3 2020 Quarterly Statement including the commitment of double-digit growth of operating profit in 2023. In light of its strong cloud momentum and most recent favorable currency exchange rates development, SAP expects to update its mid-term ambition in the upcoming quarters.

8/31

AdditionalInformation

This press release and all information therein is preliminary and unaudited.

SAP Performance Measures

For more information about our key growth metrics and performance measures, their calculation, their usefulness, and their limitation, please refer to the following document on our Investor Relations website: SAPPerformance Measures.

Webcast

SAP senior management will host a financial analyst conference call on Thursday, July 21^st^ at 2:00 PM (CET) / 1:00 PM (GMT) / 8:00 AM (Eastern) / 5:00 AM (Pacific). The conference will be webcast live on the Company’s website at www.sap.com/investorand will be available for replay. Supplementary financial information pertaining to the first quarter can be found at www.sap.com/investor.

About SAP

SAP’s strategy is to help every business run as an intelligent enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: SAP customers generate 87% of total global commerce. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers’ businesses into intelligent enterprises. SAP helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want – without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. With a global network of customers, partners, employees, and thought leaders, SAP helps the world run better and improve people’s lives. For more information, visit www.sap.com.

Formore information, financial community only:

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9/31

Contents

Financial<br> and Non-Financial Key Facts (IFRS and Non-IFRS)		11
Primary<br> Financial Statements of SAP Group (IFRS)		13
(A)	Consolidated Income Statements	13
(B)	Consolidated Statements of Financial Position	15
(C)	Consolidated Statements of Cash Flows	16
Non-IFRS<br> Numbers		17
(D)	Basis of Non-IFRS Presentation	17
(E)	Reconciliation from Non-IFRS Numbers to IFRS Numbers	18
(F)	Non-IFRS Adjustments – Actuals and Estimates	20
(G)	Non-IFRS Adjustments by Functional Areas	20
Disaggregations		22
(H)	Segment Reporting	22
(I)	Reconciliation of Cloud Revenues and Margins	26
(J)	Revenue by Region (IFRS and Non-IFRS)	28
(K)	Employees by Region and Functional Areas	30
Other<br> Disclosures		31
(L)	Financial Income, Net	31
(M)	Business Combinations	31
(N)	Share Buyback	31
(O)	Share Based Payments	31

10/31

Financialand Non-Financial Key Facts (IFRS and Non-IFRS)

€<br> millions, unless otherwise stated	Q1<br><br> <br>2021	Q2<br><br> <br>2021	Q3<br><br> <br>2021	Q4<br><br> <br>2021	TY<br><br> <br>2021	Q1<br><br> <br>2022	Q2<br><br> <br>2022
Revenues
Cloud	2,145	2,276	2,386	2,611	9,418	2,820	3,056
%<br> change – yoy	7	11	20	28	17	31	34
%<br> change constant currency – yoy	13	17	20	24	19	25	24
SAP<br> S/4HANA Cloud	227	257	276	329	1,090	404	472
%<br> change – yoy	36	33	46	65	46	78	84
%<br> change constant currency – yoy	43	39	46	61	47	71	72
Software<br> licenses	483	650	657	1,458	3,248	317	426
%<br> change – yoy	7	–16	–8	–14	–11	–34	–34
%<br> change constant currency – yoy	11	–13	–8	–17	–11	–36	–38
Software<br> support	2,801	2,823	2,867	2,920	11,412	2,923	2,977
%<br> change – yoy	–5	–2	1	3	–1	4	5
%<br> change constant currency – yoy	0	1	1	1	1	1	0
Software<br> licenses and support	3,283	3,474	3,524	4,379	14,660	3,240	3,403
%<br> change – yoy	–3	–5	–1	–4	–3	–1	–2
%<br> change constant currency – yoy	1	–2	–1	–6	–2	–4	–7
Cloud<br> and software	5,428	5,750	5,910	6,990	24,078	6,060	6,459
%<br> change – yoy	1	1	7	6	4	12	12
%<br> change constant currency – yoy	6	5	6	3	5	7	5
Total<br> revenue	6,348	6,669	6,845	7,981	27,842	7,077	7,517
%<br> change – yoy	–3	–1	5	6	2	11	13
%<br> change constant currency – yoy	2	3	5	3	3	7	5
Share<br> of more predictable revenue (in %)	78	76	77	69	75	81	80
Profits
Operating<br> profit (loss) (IFRS)	960	984	1,249	1,463	4,656	1,053	673
Operating<br> profit (loss) (non-IFRS)	1,738	1,922	2,102	2,468	8,230	1,677	1,680
%<br> change	17	–2	2	–11	–1	–4	–13
%<br> change constant currency	24	3	2	–12	1	–7	–16
Profit<br> (loss) after tax (IFRS)	1,070	1,449	1,418	1,440	5,376	632	203
Profit<br> (loss) after tax (non-IFRS)	1,720	2,214	2,129	2,274	8,337	1,166	1,093
%<br> change	70	59	1	12	28	–32	–51
Margins
Cloud<br> gross margin (IFRS, in %)	67.2	67.5	67.0	66.6	67.0	68.2	69.8
Cloud<br> gross margin (non-IFRS, in %)	69.5	70.0	69.4	69.0	69.5	70.0	71.9
Software<br> license and support gross margin (IFRS, in %)	85.7	86.5	87.1	87.9	86.9	87.0	87.7
Software<br> license and support gross margin (non-IFRS, in %)	86.3	87.3	87.8	88.5	87.6	87.5	88.5
Cloud<br> and software gross margin (IFRS, in %)	78.4	79.0	79.0	79.9	79.1	78.2	79.2
Cloud<br> and software gross margin (non-IFRS, in %)	79.7	80.5	80.4	81.2	80.5	79.4	80.6
Gross<br> margin (IFRS, in %)	70.3	70.8	71.4	73.0	71.5	70.3	70.7
Gross<br> margin (non-IFRS, in %)	72.3	73.4	73.6	75.1	73.7	72.0	73.1
Operating<br> margin (IFRS, in %)	15.1	14.8	18.2	18.3	16.7	14.9	8.9
Operating<br> margin (non-IFRS, in %)	27.4	28.8	30.7	30.9	29.6	23.7	22.4
ATS<br> segment – Cloud gross margin (in %)	67.7	68.2	67.6	66.8	67.6	67.8	69.5
ATS<br> segment – Segment gross margin (in %)	72.8	73.9	74.4	74.8	74.0	71.8	72.9
ATS<br> segment – Segment margin in %	35.4	36.8	38.2	36.9	36.8	30.7	29.5
Qualtrics<br> segment – Cloud gross margin (in %)	92.2	92.4	91.6	90.2	91.5	89.6	88.6
Qualtrics<br> segment – Segment gross margin (in %)	79.5	80.3	80.7	78.1	79.6	78.9	77.5
Qualtrics<br> segment – Segment margin (in %)	6.3	6.3	6.0	1.6	4.8	3.1	5.1

11/31

Key Profit Ratios
Effective<br> tax rate (IFRS, in %)	20.0	19.7	18.9	26.4	21.5	33.1	62.2
Effective<br> tax rate (non-IFRS, in %)	18.7	19.2	18.2	23.2	20.0	25.7	29.3
Earnings<br> per share, basic (IFRS, in €)	0.88	1.15	1.19	1.23	4.46	0.63	0.29
Earnings<br> per share, basic (non-IFRS, in €)	1.40	1.75	1.74	1.85	6.73	1.00	0.96
Order Entry and current cloud backlog
Current<br> cloud backlog	7,628	7,766	8,171	9,447	9,447	9,731	10,403
%<br> change – yoy	15	17	24	32	32	28	34
%<br> change constant currency – yoy	19	20	22	26	26	23	25
SAP<br> S/4HANA Current cloud backlog	1,036	1,130	1,283	1,707	1,707	1,925	2,258
%<br> change – yoy	39	45	60	84	84	86	100
%<br> change constant currency – yoy	43	48	58	76	76	79	87
Share<br> of cloud orders greater than €5 million based on total cloud order entry volume (in %)^3^	25	29	38	45	41	41	48
Share<br> of cloud orders smaller than €1 million based on total cloud order entry volume (in %)^3^	45	38	35	27	28	31	28
Share<br> of orders greater than €5 million based on total software order entry volume (in %)	23	22	31	24	25	40	33
Share<br> of orders smaller than €1 million based on total software order entry volume (in %)	42	43	41	36	39	33	40
Liquidity and Cash Flow
Net<br> cash flows from operating activities	3,085	686	1,183	1,269	6,223	2,482	268
Capital<br> expenditure	–153	–191	–202	–255	–800	–221	–235
Payments<br> of lease liabilities	–84	–92	–99	–98	–374	–95	–120
Free<br> cash flow	2,848	403	881	916	5,049	2,165	–86
%<br> of total revenue	45	6	13	11	18	31	–1
%<br> of profit after tax (IFRS)	266	28	62	64	94	343	–42
Group<br> liquidity	11,573	8,548	9,375	11,530	11,530	11,283	8,256
Financial<br> debt (–)	–14,230	–13,116	–12,994	–13,094	–13,094	–12,171	–12,282
Net<br> debt (–)	–2,658	–4,568	–3,619	–1,563	–1,563	–888	–4,026
Financial Position
Cash<br> and cash equivalents	10,332	7,764	7,943	8,898	8,898	8,942	7,492
Goodwill	29,328	29,020	29,600	31,090	31,090	32,172	33,913
Total<br> assets	66,477	63,075	65,029	71,169	71,169	76,387	75,575
Contract<br> liabilities (current)	6,568	5,958	4,627	4,431	4,431	7,630	6,883
Equity<br> ratio (total equity in % of total assets)	52	54	57	58	58	56	57
Non-Financials
Number<br> of employees (quarter end)^1^	103,142	103,876	105,015	107,415	107,415	109,798	110,409
Employee<br> retention (in %, rolling 12 months)	95.4	94.8	93.7	92.8	92.8	92.1	91.6
Women<br> in management (in %, quarter end)	27.6	27.9	28.2	28.3	28.3	28.6	28.8
Net<br> carbon emissions^2^(in kilotons)	30	20	25	35	110	20	25

^1^ In full-time equivalents

^2^ In CO2 equivalents

^3^ To conform to refined calculation logic prior quarters have been adjusted

Due to rounding, numbers may not add up precisely.

12/31

PrimaryFinancial Statements of SAP Group (IFRS)

(A) ConsolidatedIncome Statements

(A.1) Consolidated Income Statements – Quarter

€<br> millions, unless otherwise stated	Q2 2022	Q2<br> 2021	∆<br> in %
Cloud	3,056	2,276	34
Software<br> licenses	426	650	–34
Software<br> support	2,977	2,823	5
Software<br> licenses and support	3,403	3,474	–2
Cloud and software	6,459	5,750	12
Services	1,057	920	15
Total revenue	7,517	6,669	13
Cost<br> of cloud	–924	–740	25
Cost<br> of software licenses and support	–419	–468	–10
Cost<br> of cloud and software	–1,343	–1,208	11
Cost<br> of services	–856	–738	16
Total cost of revenue	–2,199	–1,946	13
Gross profit	5,318	4,723	13
Research<br> and development	–1,545	–1,306	18
Sales<br> and marketing	–2,343	–1,828	28
General<br> and administration	–530	–593	–11
Restructuring	–130	–6	>100
Other<br> operating income/expense, net	–98	–5	>100
Total operating expenses	–6,844	–5,685	20
Operating profit (loss)	673	984	–32
Other non-operating income/expense, net	–17	–33	–50
Finance<br> income	178	1,002	–82
Finance<br> costs	–297	–149	99
Financial income, net	–118	853	<-100
Profit (loss) before tax	538	1,804	–70
Income<br> tax expense	–335	–355	–6
Profit (loss) after tax	203	1,449	–86
Attributable<br> to owners of parent	334	1,356	–75
Attributable<br> to non-controlling interests	–131	93	<-100
Earnings per share, basic (in €)^1^	0.29	1.15	–75
Earnings per share, diluted (in €)^1^	0.28	1.15	–75

^1^For the three months ended June 30, 2022 and 2021, the weighted average number of shares was 1,171 million (diluted 1,174 million) and 1,180 million (diluted: 1,180 million), respectively (treasury stock excluded).

Due to rounding, numbers may not add up precisely.

13/31

(A.2) Consolidated Income Statements – Year-to-Date

€<br> millions, unless otherwise stated	Q1–Q2<br><br> <br>2022	Q1–Q2<br><br> <br>2021	∆<br> in %
Cloud	5,876	4,421	33
Software<br> licenses	743	1,133	–34
Software<br> support	5,900	5,624	5
Software<br> licenses and support	6,643	6,757	–2
Cloud and software	12,519	11,178	12
Services	2,075	1,839	13
Total revenue	14,594	13,017	12
Cost<br> of cloud	–1,822	–1,444	26
Cost<br> of software licenses and support	–841	–939	–10
Cost<br> of cloud and software	–2,663	–2,383	12
Cost<br> of services	–1,635	–1,447	13
Total cost of revenue	–4,298	–3,830	12
Gross profit	10,296	9,187	12
Research<br> and development	–2,970	–2,478	20
Sales<br> and marketing	–4,330	–3,491	24
General<br> and administration	–1,034	–1,098	–6
Restructuring	–119	–164	–27
Other<br> operating income/expense, net	–118	–12	>100
Total operating expenses	–12,868	–11,073	16
Operating profit (loss)	1,726	1,944	–11
Other non-operating income/expense, net	–69	29	<-100
Finance<br> income	521	1,549	–66
Finance<br> costs	–695	–381	82
Financial income, net	–174	1,168	<-100
Profit (loss) before tax	1,483	3,141	–53
Income<br> tax expense	–648	–622	4
Profit (loss) after tax	835	2,519	–67
Attributable<br> to owners of parent	1,074	2,396	–55
Attributable<br> to non-controlling interests	–239	123	<-100
Earnings per share, basic (in €)^1^	0.92	2.03	–55
Earnings per share, diluted (in €)^1^	0.91	2.03	–55

^1^For the six months ended June 30, 2022 and 2021, the weighted average number of shares was 1,174 million (diluted: 1,174 million) and 1,180 million (diluted: 1,180 million), respectively (treasury stock excluded).

Due to rounding, numbers may not add up precisely.

14/31

(B)	Consolidated Statements of Financial Position
as<br> at 06/30/2022 and 12/31/2021
---	---	---
€<br> millions	2022	2021
Cash<br> and cash equivalents	7,492	8,898
Other<br> financial assets	987	2,758
Trade<br> and other receivables	8,674	6,352
Other<br> non-financial assets	2,112	1,633
Tax<br> assets	856	403
Total current assets	20,121	20,044
Goodwill	33,913	31,090
Intangible<br> assets	4,295	3,965
Property,<br> plant, and equipment	4,996	4,977
Other<br> financial assets	6,920	6,275
Trade<br> and other receivables	113	147
Other<br> non-financial assets	3,010	2,628
Tax<br>assets	307	263
Deferred<br> tax assets	1,901	1,779
Total non-current assets	55,454	51,125
Total assets	75,575	71,169
€<br> millions	2022	2021
Trade<br> and other payables	1,939	1,580
Tax<br> liabilities	317	304
Financial<br> liabilities	8,150	4,528
Other<br> non-financial liabilities	3,458	5,203
Provisions	148	89
Contract<br> liabilities	6,883	4,431
Total current liabilities	20,894	16,136
Trade<br> and other payables	104	122
Tax<br> liabilities	903	827
Financial<br> liabilities	9,515	11,042
Other<br> non-financial liabilities	657	860
Provisions	382	355
Deferred<br> tax liabilities	300	291
Contract<br> liabilities	33	13
Total non-current liabilities	11,894	13,510
Total liabilities	32,788	29,645
Issued<br> capital	1,229	1,229
Share<br> premium	2,547	1,918
Retained<br> earnings	35,109	37,022
Other<br> components of equity	5,031	1,756
Treasury<br> shares	–4,072	–3,072
Equity attributable to owners of parent	39,844	38,852
Non-controlling interests	2,943	2,670
Total equity	42,787	41,523
Total equity and liabilities	75,575	71,169

Due to rounding, numbers may not add up precisely.

15/31

(C)	Consolidated Statements of Cash Flows
€<br> millions	Q1–Q2 2022	Q1–Q2<br> 2021
---	---	---
Profit (loss) after tax	835	2,519
Adjustments<br> to reconcile profit (loss) after tax to net cash flows from operating activities:
Depreciation<br> and amortization	933	871
Share-based<br> payment expense	1,184	1,256
Income<br> tax expense	648	622
Financial<br> income, net	174	–1,168
Decrease/increase<br> in allowances on trade receivables	108	–11
Other<br> adjustments for non-cash items	7	110
Decrease/increase<br> in trade and other receivables	865	1,074
Decrease/increase<br> in other assets	–621	–229
Increase/decrease<br> in trade payables, provisions, and other liabilities	–1,312	–1,024
Increase/decrease<br> in contract liabilities	2,133	1,888
Share-based<br> payments	–918	–779
Interest<br> paid	–140	–125
Interest<br> received	45	21
Income<br> taxes paid, net of refunds	–1,192	–1,254
Net cash flows from operating activities	2,750	3,771
Business<br> combinations, net of cash and cash equivalents acquired	–627	–995
Purchase<br> of intangible assets or property, plant, and equipment	–456	–344
Proceeds<br> from sales of intangible assets or property, plant, and equipment	51	40
Purchase<br> of equity or debt instruments of other entities	–2,256	–754
Proceeds<br> from sales of equity or debt instruments of other entities	4,005	1,325
Cash<br> flows from advances (supply chain financing)^1^	–1,432	0
Net cash flows from investing activities	–715	–728
Dividends<br> paid	–2,865	–2,182
Dividends<br> paid on non-controlling interests	–3	–16
Purchase<br> of treasury shares	–1,000	0
Proceeds<br> from changes in ownership interests in subsidiaries that do not result in the loss of control	21	1,847
Payments<br> for taxes related to net share settlement of equity awards	–224	0
Proceeds<br> from borrowings	38	1,600
Repayments<br> of borrowings	–944	–1,802
Payments<br> of lease liabilities	–215	–176
Cash<br> flows with funders (supply chain financing)^1^	1,409	0
Net cash flows from financing activities	–3,782	–729
Effect of foreign currency rates on cash and cash equivalents	341	139
Net decrease/increase in cash and cash equivalents	–1,406	2,453
Cash and cash equivalents at the beginning of the period	8,898	5,311
Cash and cash equivalents at the end of the period	7,492	7,764
^1^ For<br> more information, see Note (M) in this Quarterly Statement or Note (D.1) in the SAP Half-Year Report 2022.
Due<br> to rounding, numbers may not add up precisely.

16/31

Non-IFRS Numbers

(D)	Basis of Non-IFRS Presentation

We disclose certain financial measures such as revenue (non-IFRS), expense (non-IFRS), and profit measures (non-IFRS) that are not prepared in accordance with IFRS and are therefore considered non-IFRS financial measures.

For a more detailed description of all of SAP’s non-IFRS measures and their limitations as well as our constant currency and free cash flow figures, see Explanation of Non-IFRS Measuresonline.

17/31

(E)	Reconciliation from Non-IFRS Numbers to IFRS Numbers
(E.1)	Reconciliation<br> from Non-IFRS Numbers to IFRS Numbers – Quarter
---	---
€<br> millions, unless otherwise stated	Q2 2022					Q2<br> 2021			∆<br> in %
---	---	---	---	---	---	---	---	---	---	---	---
	IFRS	Adj.	Non-IFRS	Currency<br><br> <br>Impact	Non-IFRS Constant Currency	IFRS	Adj.	Non-<br><br>IFRS	IFRS	Non-<br><br>IFRS	Non-IFRS<br><br><br> Constant<br><br> Currency^1^
Revenue Numbers
Cloud	3,056		3,056	–232	2,824	2,276		2,276	34	34	24
Software<br> licenses	426		426	–25	401	650		650	–34	–34	–38
Software<br> support	2,977		2,977	–158	2,820	2,823		2,823	5	5	0
Software<br> licenses and support	3,403		3,403	–183	3,221	3,474		3,474	–2	–2	–7
Cloud and software	6,459		6,459	–414	6,045	5,750		5,750	12	12	5
Services	1,057		1,057	–70	987	920		920	15	15	7
Total revenue	7,517		7,517	–484	7,033	6,669		6,669	13	13	5
Operating Expense Numbers
Cost<br> of cloud	–924	64	–860			–740	57	–682	25	26
Cost<br> of software licenses and support	–419	28	–391			–468	29	–439	–10	–11
Cost<br> of cloud and software	–1,343	92	–1,252			–1,208	86	–1,122	11	12
Cost<br> of services	–856	87	–769			–738	87	–651	16	18
Total cost of revenue	–2,199	179	–2,020			–1,946	173	–1,773	13	14
Gross profit	5,318	179	5,496			4,723	173	4,896	13	12
Research<br> and development	–1,545	181	–1,363			–1,306	157	–1,149	18	19
Sales<br> and marketing	–2,343	315	–2,028			–1,828	294	–1,534	28	32
General<br> and administration	–530	203	–326			–593	307	–286	–11	14
Restructuring	–130	130	0			–6	6	0	>100	NA
Other<br> operating income/expense, net	–98	0	–98			–5	0	–5	>100	>100
Total operating expenses	–6,844	1,008	–5,836	419	–5,417	–5,685	938	–4,748	20	23	14
Profit Numbers
Operating profit (loss)	673	1,008	1,680	–65	1,615	984	938	1,922	–32	–13	–16
Other non-operating income/expense, net	–17	0	–17			–33	0	–33	–50	–50
Finance<br> income	178	0	178			1,002	0	1,002	–82	–82
Finance<br> costs	–297	0	–297			–149	0	–149	99	99
Financial income, net	–118	0	–118			853	0	853	<-100	<-100
Profit (loss) before tax	538	1,008	1,546			1,804	938	2,741	–70	–44
Income<br> tax expense	–335	–118	–453			–355	–173	–528	–6	–14
Profit (loss) after tax	203	890	1,093			1,449	765	2,214	–86	–51
Attributable<br> to owners of parent	334	794	1,129			1,356	706	2,061	–75	–45
Attributable<br> to non-controlling interests	–131	95	–36			93	59	153	<-100	<-100
Key Ratios
Operating margin (in %)	8.9		22.4		23.0	14.8		28.8	–5.8pp	–6.5pp	–5.8pp
Effective tax rate (in %)^2^	62.2		29.3			19.7		19.2	42.5pp	10.0pp
Earnings per share, basic (in €)	0.29		0.96			1.15		1.75	–75	–45

^1^Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS numbers of the previous year's respective period.

^2^The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in Q2 2022 mainly resulted from tax effects of share-based payment expenses, acquisition-related charges and restructuring expenses. The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in Q2 2021 mainly resulted from tax effects of share-based payment expenses and acquisition-related charges.

Due to rounding, numbers may not add up precisely.

18/31

(E.2)	Reconciliation<br>from Non-IFRS Numbers to IFRS Numbers – Year-to-Date
€<br> millions, unless otherwise stated	Q1–Q2 2022					Q1–Q2<br> 2021			∆<br> in %
---	---	---	---	---	---	---	---	---	---	---	---
	IFRS	Adj.	Non-IFRS	Currency<br><br> <br>Impact	Non-IFRS<br><br> <br>Constant<br><br> <br>Currency	IFRS	Adj.	Non-<br><br>IFRS	IFRS	Non-<br><br>IFRS	Non-IFRS<br><br> <br>Constant<br><br> <br>Currency^1^
Revenue Numbers
Cloud	5,876		5,876	–361	5,515	4,421		4,421	33	33	25
Software<br> licenses	743		743	–35	708	1,133		1,133	–34	–34	–38
Software<br> support	5,900		5,900	–251	5,649	5,624		5,624	5	5	0
Software<br> licenses and support	6,643		6,643	–287	6,357	6,757		6,757	–2	–2	–6
Cloud and software	12,519		12,519	–647	11,872	11,178		11,178	12	12	6
Services	2,075		2,075	–108	1,967	1,839		1,839	13	13	7
Total revenue	14,594		14,594	–755	13,839	13,017		13,017	12	12	6
Operating Expense Numbers
Cost<br> of cloud	–1,822	116	–1,706			–1,444	108	–1,336	26	28
Cost<br> of software licenses and support	–841	45	–796			–939	50	–889	–10	–10
Cost<br> of cloud and software	–2,663	161	–2,502			–2,383	158	–2,225	12	12
Cost<br> of services	–1,635	133	–1,502			–1,447	139	–1,308	13	15
Total cost of revenue	–4,298	294	–4,003			–3,830	297	–3,533	12	13
Gross profit	10,296	294	10,591			9,187	297	9,484	12	12
Research<br> and development	–2,970	284	–2,686			–2,478	251	–2,227	20	21
Sales<br> and marketing	–4,330	520	–3,810			–3,491	482	–3,009	24	27
General<br> and administration	–1,034	415	–619			–1,098	522	–576	–6	7
Restructuring	–119	119	0			–164	164	0	–27	NA
Other<br> operating income/expense, net	–118	0	–118			–12	0	–12	>100	>100
Total operating expenses	–12,868	1,632	–11,236	628	–10,608	–11,073	1,715	–9,357	16	20	13
Profit Numbers
Operating profit (loss)	1,726	1,632	3,358	–127	3,231	1,944	1,715	3,660	–11	–8	–12
Other non-operating income/expense, net	–69	0	–69			29	0	29	<-100	<-100
Finance<br> income	521	0	521			1,549	0	1,549	–66	–66
Finance<br> costs	–695	0	–695			–381	0	–381	82	82
Financial income, net	–174	0	–174			1,168	0	1,168	<-100	<-100
Profit (loss) before tax	1,483	1,632	3,115			3,141	1,715	4,856	–53	–36
Income<br> tax expense	–648	–208	–856			–622	–300	–922	4	–7
Profit (loss) after tax	835	1,424	2,259			2,519	1,415	3,934	–67	–43
Attributable<br> to owners of parent	1,074	1,232	2,306			2,396	1,310	3,706	–55	–38
Attributable<br> to non-controlling interests	–239	192	–47			123	105	228	<-100	<-100
Key Ratios
Operating margin (in %)	11.8		23.0		23.3	14.9		28.1	–3.1pp	–5.1pp	–4.8pp
Effective tax rate (in %)^2^	43.7		27.5			19.8		19.0	23.9pp	8.5pp
Earnings per share, basic (in €)	0.92		1.96			2.03		3.14	–55	–37

^1^Constant-currency period-over-period changes are calculated by comparing the current year's non-IFRS constant-currency numbers with the non-IFRS number of the previous year's respective period.

^2^The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in the first half of 2022 and 2021 mainly resulted from tax effects of share-based payment expenses, acquisition-related charges and restructuring expenses.

Due to rounding, numbers may not add up precisely.

19/31

(F)	Non-IFRS Adjustments – Actuals and Estimates
€<br> millions	Estimated<br> Amounts for<br><br> <br>Full<br> Year 2022	Q1–Q2<br><br> <br>2022	Q2 2022	Q1–Q2<br><br>2021	Q2<br> 2021
---	---	---	---	---	---
Operating profit (loss) (IFRS)		1,726	673	1,944	984
Adjustment<br> for acquisition-related charges	620–720	328	165	296	147
Adjustment<br> for share-based payment expenses	2,500–2,700	1,184	714	1,256	784
Adjustment<br> for restructuring	130–150	119	130	164	6
Operating expense adjustments		1,632	1,008	1,715	938
Operating profit (loss) (non-IFRS)		3,358	1,680	3,660	1,922

Due to rounding, numbers may not add up precisely.

(G)	Non-IFRS Adjustments by Functional Areas
€<br> millions	Q2 2022					Q2<br> 2021
---	---	---	---	---	---	---	---	---	---	---
	IFRS	Acquisition-Related	SBP^1^	Restruc-turing	Non-IFRS	IFRS	Acquisition-<br><br>Related	SBP^1^	Restruc-<br><br>turing	Non-IFRS
Cost<br> of cloud	–924	44	20	0	–860	–740	41	16	0	–682
Cost<br> of software licenses and support	–419	8	20	0	–391	–468	8	21	0	–439
Cost<br> of services	–856	6	81	0	–769	–738	5	82	0	–651
Research<br> and development	–1,545	3	178	0	–1,363	–1,306	2	156	0	–1,149
Sales<br> and marketing	–2,343	104	211	0	–2,028	–1,828	91	203	0	–1,534
General<br> and administration	–530	1	202	0	–326	–593	1	306	0	–286
Restructuring	–130	0	0	130	0	–6	0	0	6	0
Other<br> operating income/expense, net	–98	0	0	0	–98	–5	0	0	0	–5
Total operating expenses	–6,844	165	714	130	–5,836	–5,685	147	784	6	–4,748
€<br> millions	Q1–Q2 2022					Q1–Q2<br> 2021
---	---	---	---	---	---	---	---	---	---	---
	IFRS	Acquisition-<br><br> <br>Related	SBP^1^	Restruc-turing	Non-IFRS	IFRS	Acquisition-<br><br> <br>Related	SBP^1^	Restruc-<br><br>turing	Non-IFRS
Cost<br> of cloud	–1,822	85	31	0	–1,706	–1,444	80	28	0	–1,336
Cost<br> of software licenses and support	–841	15	30	0	–796	–939	16	34	0	–889
Cost<br> of services	–1,635	11	122	0	–1,502	–1,447	10	129	0	–1,308
Research<br> and development	–2,970	5	279	0	–2,686	–2,478	3	248	0	–2,227
Sales<br> and marketing	–4,330	205	315	0	–3,810	–3,491	181	301	0	–3,009
General<br> and administration	–1,034	7	408	0	–619	–1,098	6	516	0	–576
Restructuring	–119	0	0	119	0	–164	0	0	164	0
Other<br> operating income/expense, net	–118	0	0	0	–118	–12	0	0	0	–12
Total operating expenses	–12,868	328	1,184	119	–11,236	–11,073	296	1,256	164	–9,357

^1^ Share-based Payments

Due to rounding, numbers may not add up precisely.

20/31

If not presented in a separate line item in our income statement, the restructuring expenses would break down as follows:

€<br> millions	Q2 2022	Q1–Q2 2022	Q2<br> 2021	Q1–Q2<br> 2021
Cost<br> of cloud	–5	12	–1	–130
Cost<br> of software licenses and support	–3	–4	–1	–4
Cost<br> of services	–59	–61	–1	–15
Research<br> and development	–4	–7	–2	–11
Sales<br> and marketing	–56	–57	–1	–3
General<br> and administration	–2	–3	0	–1
Restructuring expenses	–130	–119	–6	–164

Due to rounding, numbers may not add up precisely.

21/31

Disaggregations
(H)	SegmentReporting
---	---
(H.1)	Segment<br>Policies and Segment Changes
---	---

SAP has two reportable segments: the Applications, Technology & Services segment and the Qualtrics segment.

For a more detailed description of SAP’s segment reporting, see Note (C.1) “Results of Segments” of our Consolidated Half-Year Financial Statements 2022.

(H.2)	Segment<br>Reporting – Quarter

Applications,Technology & Services

€<br>millions, unless otherwise stated<br><br>(non-IFRS)	Q2 2022		Q2<br> 2021	∆<br> in %	∆<br> in %
	Actual<br><br> <br>Currency	Constant<br><br> <br>Currency	Actual<br><br> <br>Currency	Actual<br><br> <br>Currency	Constant<br><br> <br>Currency
Cloud	2,704	2,507	2,063	31	22
Software<br> licenses	425	400	649	–34	–38
Software<br> support	2,977	2,819	2,823	5	0
Software<br> licenses and support	3,402	3,220	3,472	–2	–7
Cloud<br> and software	6,106	5,726	5,535	10	3
Services	1,003	940	877	14	7
Total segment revenue	7,109	6,666	6,412	11	4
Cost<br> of cloud	–824	–747	–656	26	14
Cost<br> of software licenses and support	–403	–380	–410	–2	–7
Cost<br> of cloud and software	–1,227	–1,127	–1,066	15	6
Cost<br> of services	–697	–659	–608	15	8
Total cost of revenue	–1,924	–1,786	–1,674	15	7
Segment gross profit	5,185	4,879	4,738	9	3
Other<br> segment expenses	–3,091	–2,869	–2,377	30	21
Segment profit (loss)	2,094	2,011	2,361	–11	–15
Margins
Cloud<br> gross margin (in %)	69.5	70.2	68.2	1.3pp	2.0pp
Segment<br> gross margin (in %)	72.9	73.2	73.9	–1.0pp	–0.7pp
Segment<br> margin (in %)	29.5	30.2	36.8	–7.4pp	–6.7pp

Due to rounding, numbers may not add up precisely.

22/31

Qualtrics

€<br> millions, unless otherwise stated<br><br> <br>(non-IFRS)	Q2 2022		Q2<br> 2021	∆<br> in %	∆<br> in %
	Actual<br><br> <br>Currency	Constant<br><br> <br>Currency	Actual<br><br> <br>Currency	Actual<br><br> <br>Currency	Constant<br><br> <br>Currency
Cloud	279	248	174	61	43
Cloud<br> and software	279	248	174	61	43
Services	51	45	37	38	22
Total segment revenue	330	293	211	57	39
Cost<br> of cloud	–32	–28	–13	>100	>100
Cost<br> of cloud and software	–32	–28	–13	>100	>100
Cost<br> of services	–43	–38	–28	51	36
Total cost of revenue	–74	–67	–41	80	61
Segment gross profit	256	226	169	51	34
Other<br> segment expenses	–239	–207	–156	53	33
Segment profit (loss)	17	19	13	25	45
Margins
Cloud<br> gross margin (in %)	88.6	88.5	92.4	–3.8pp	–3.9pp
Segment<br> gross margin (in %)	77.5	77.2	80.3	–2.9pp	–3.1pp
Segment<br> margin (in %)	5.1	6.6	6.3	–1.3pp	0.2pp

Due to rounding, numbers may not add up precisely.

23/31

(H.3)	Segment<br>Reporting – Year-to-Date

Applications,Technology & Services

€<br> millions, unless otherwise stated<br><br> <br>(non-IFRS)	Q1–Q2 2022		Q1–Q2<br> 2021	∆<br> in %	∆<br> in %
	Actual<br><br> <br>Currency	Constant<br><br> <br>Currency	Actual<br><br> <br>Currency	Actual<br><br> <br>Currency	Constant<br><br> <br>Currency
Cloud	5,199	4,891	4,015	29	22
Software<br> licenses	740	705	1,132	–35	–38
Software<br> support	5,899	5,648	5,623	5	0
Software<br> licenses and support	6,640	6,353	6,755	–2	–6
Cloud<br> and software	11,838	11,245	10,769	10	4
Services	1,966	1,868	1,749	12	7
Total segment revenue	13,804	13,113	12,519	10	5
Cost<br> of cloud	–1,629	–1,512	–1,287	27	18
Cost<br> of software licenses and support	–810	–772	–832	–3	–7
Cost<br> of cloud and software	–2,438	–2,285	–2,119	15	8
Cost<br> of services	–1,375	–1,316	–1,214	13	8
Total cost of revenue	–3,814	–3,600	–3,333	14	8
Segment gross profit	9,991	9,512	9,186	9	4
Other<br> segment expenses	–5,841	–5,526	–4,663	25	19
Segment profit (loss)	4,149	3,986	4,523	–8	–12
Margins
Cloud<br> gross margin (in %)	68.7	69.1	67.9	0.7pp	1.1pp
Segment<br> gross margin (in %)	72.4	72.5	73.4	–1.0pp	–0.8pp
Segment<br> margin (in %)	30.1	30.4	36.1	–6.1pp	–5.7pp

Due to rounding, numbers may not add up precisely.

24/31

Qualtrics

€<br> millions, unless otherwise stated<br><br> <br>(non-IFRS)	Q1–Q2 2022		Q1–Q2<br> 2021	∆<br> in %	∆<br> in %
	Actual<br><br> <br>Currency	Constant<br><br> <br>Currency	Actual<br><br> <br>Currency	Actual<br><br> <br>Currency	Constant<br><br> <br>Currency
Cloud	548	500	333	65	50
Cloud<br> and software	548	500	333	65	50
Services	102	92	80	27	15
Total segment revenue	650	592	413	57	43
Cost<br> of cloud	–60	–55	–26	>100	>100
Cost<br> of cloud and software	–60	–55	–26	>100	>100
Cost<br> of services	–82	–76	–57	44	32
Total cost of revenue	–142	–130	–83	72	58
Segment gross profit	508	461	330	54	40
Other<br> segment expenses	–481	–431	–304	58	42
Segment profit (loss)	26	30	26	2	17
Margins
Cloud<br> gross margin (in %)	89.1	89.0	92.3	–3.2pp	–3.3pp
Segment<br> gross margin (in %)	78.1	78.0	80.0	–1.8pp	–2.0pp
Segment<br> margin (in %)	4.1	5.1	6.3	–2.2pp	–1.2pp

Due to rounding, numbers may not add up precisely.

25/31

(I)	Reconciliation of Cloud Revenues and Margins
(I.1)	Reconciliation<br>of Cloud Revenues and Margins – Quarter
---	---
€<br> millions, unless otherwise stated	Q2 2022				Q2<br> 2021		∆<br> in %
---	---	---	---	---	---	---	---	---	---
	IFRS	Non- IFRS	Currency Impact	Non-IFRS Constant Currency	IFRS	Non-<br><br>IFRS	IFRS	Non-<br><br> IFRS	Non-IFRS<br><br> Constant<br><br> Currency^4^
Cloud<br> revenue – SaaS^1^	2,409	2,409	–191	2,218	1,789	1,789	35	35	24
Cloud<br> revenue – PaaS^2^	389	389	–24	366	262	262	49	49	40
Cloud<br> revenue – IaaS^3^	257	257	–17	240	225	225	14	14	7
Cloud revenue	3,056	3,056	–232	2,824	2,276	2,276	34	34	24
Cloud<br> gross margin – SaaS^1^ (in %)	72.8	75.2		75.2	69.6	72.6	3.1<br> pp	2.6<br> pp	2.6<br> pp
Cloud<br> gross margin – PaaS^2^ (in %)	79.5	79.6		81.4	80.7	80.8	–1.2<br> pp	–1.2<br> pp	0.5<br> pp
Cloud<br> gross margin – IaaS^3^ (in %)	27.1	28.5		32.1	35.2	36.7	–8.1<br> pp	–8.2<br> pp	–4.6<br> pp
Cloud gross margin (in %)	69.8	71.9		72.3	67.5	70.0	2.3 pp	1.8 pp	2.3 pp

^1^Software as a service

^2^Platform as a service

^3^Infrastructure as a service

^4^Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS numbers of the previous year's respective period.

As of Q1 2022, the allocation of cloud revenues and -expenses to cloud service models has been aligned to internal reporting structures. Presented 2021 comparable periods have been updated accordingly.

Due to rounding, numbers may not add up precisely.

26/31

(I.2)	Reconciliation<br>of Cloud Revenues and Margins – Year-to-Date
€<br> millions, unless otherwise stated	Q1-Q2 2022				Q1-Q2<br> 2021		∆<br> in %
---	---	---	---	---	---	---	---	---	---
	IFRS	Non-IFRS	Currency Impact	Non-IFRS Constant Currency	IFRS	Non-<br><br>IFRS	IFRS	Non-<br><br>IFRS	Non-IFRS<br><br><br> Constant<br><br> Currency^4^
Cloud<br> revenue – SaaS^1^	4,644	4,644	–298	4,347	3,489	3,489	33	33	25
Cloud<br> revenue – PaaS^2^	739	739	–37	703	493	493	50	50	43
Cloud<br> revenue – IaaS^3^	492	492	–26	466	439	439	12	12	6
Cloud revenue	5,876	5,876	–361	5,515	4,421	4,421	33	33	25
Cloud<br> gross margin – SaaS^1^ (in %)	72.0	74.4		74.2	69.7	72.6	2.3<br> pp	1.8<br> pp	1.6<br> pp
Cloud<br> gross margin – PaaS^2^ (in %)	78.8	78.8		79.9	80.7	80.8	–1.9<br> pp	–2.0<br> pp	–0.9<br> pp
Cloud<br> gross margin – IaaS^3^ (in %)	26.2	27.3		30.0	33.8	35.0	–7.6<br> pp	–7.7<br> pp	–5.0<br> pp
Cloud gross margin (in %)	69.0	71.0		71.2	67.3	69.8	1.7 pp	1.2 pp	1.4 pp

^1^Software as a service

^2^Platform as a service

^3^Infrastructure as a service

^4^Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS numbers of the previous year's respective period.

Due to rounding, numbers may not add up precisely.

27/31

(J)	Revenue by Region (IFRS and Non-IFRS)
(J.1)	Revenue<br>by Region (IFRS and Non-IFRS) – Quarter
---	---
€<br> millions	Q2 2022				Q2<br> 2021		∆<br> in %
---	---	---	---	---	---	---	---	---	---
	IFRS	Non-IFRS	CurrencyImpact	Non-IFRSConstant Currency	IFRS	Non-IFRS	IFRS	Non-IFRS	Non-IFRS<br><br>Constant<br><br>Currency^1^
Cloud Revenue by Region
EMEA	1,054	1,054	–35	1,018	803	803	31	31	27
Americas	1,614	1,614	–182	1,432	1,176	1,176	37	37	22
APJ	389	389	–15	374	297	297	31	31	26
Cloud revenue	3,056	3,056	–232	2,824	2,276	2,276	34	34	24
Cloud and Software Revenue by Region
EMEA	2,728	2,728	–62	2,666	2,616	2,616	4	4	2
Americas	2,754	2,754	–314	2,440	2,218	2,218	24	24	10
APJ	977	977	–38	939	915	915	7	7	3
Cloud and software revenue	6,459	6,459	–414	6,045	5,750	5,750	12	12	5
Total<br> Revenue by Region
Germany	1,068	1,068	–2	1,066	1,006	1,006	6	6	6
Rest<br> of EMEA	2,106	2,106	–72	2,034	2,014	2,014	5	5	1
Total EMEA	3,174	3,174	–73	3,101	3,020	3,020	5	5	3
United<br> States	2,619	2,619	–296	2,323	2,132	2,132	23	23	9
Rest<br> of Americas	611	611	–72	539	488	488	25	25	11
Total Americas	3,230	3,230	–368	2,862	2,619	2,619	23	23	9
Japan	302	302	13	315	306	306	–1	–1	3
Rest<br> of APJ	811	811	–56	754	724	724	12	12	4
Total APJ	1,112	1,112	–43	1,069	1,030	1,030	8	8	4
Total revenue	7,517	7,517	–484	7,033	6,669	6,669	13	13	5

^1)^Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS numbers of the previous year's respective period.

Due to rounding, numbers may not add up precisely.

28/31

(J.2)	Revenue<br> by Region (IFRS and Non-IFRS) – Year-to-Date
€<br> millions	Q1–Q2 2022				Q1–Q2<br> 2021		∆<br> in %
---	---	---	---	---	---	---	---	---	---
	IFRS	Non-IFRS	CurrencyImpact	Non-IFRSConstantCurrency	IFRS	Non-IFRS	IFRS	Non-IFRS	Non-IFRS<br><br>Constant<br><br>Currency^1^
Cloud<br> Revenue by Region
EMEA	2,036	2,036	–57	1,979	1,547	1,547	32	32	28
Americas	3,094	3,094	–282	2,812	2,291	2,291	35	35	23
APJ	746	746	–22	724	582	582	28	28	24
Cloud revenue	5,876	5,876	–361	5,515	4,421	4,421	33	33	25
Cloud and Software Revenue by Region
EMEA	5,355	5,355	–100	5,255	5,050	5,050	6	6	4
Americas	5,265	5,265	–488	4,777	4,336	4,336	21	21	10
APJ	1,899	1,899	–60	1,839	1,792	1,792	6	6	3
Cloud and software revenue	12,519	12,519	–647	11,872	11,178	11,178	12	12	6
Total Revenue by Region
Germany	2,129	2,129	–3	2,126	1,957	1,957	9	9	9
Rest<br> of EMEA	4,110	4,110	–114	3,997	3,898	3,898	5	5	3
Total EMEA	6,239	6,239	–117	6,123	5,855	5,855	7	7	5
United<br> States	5,028	5,028	–456	4,571	4,166	4,166	21	21	10
Rest<br> of Americas	1,161	1,161	–115	1,046	974	974	19	19	7
Total Americas	6,189	6,189	–571	5,617	5,140	5,140	20	20	9
Japan	613	613	19	632	628	628	–2	–2	1
Rest<br> of APJ	1,553	1,553	–86	1,467	1,394	1,394	11	11	5
Total APJ	2,166	2,166	–67	2,099	2,022	2,022	7	7	4
Total revenue	14,594	14,594	–755	13,839	13,017	13,017	12	12	6

^1^ Constant-currency period-over-period changes are calculated by comparing the current year's non-IFRS constant-currency numbers with the non-IFRS number of the previous year's respective period.

Due to rounding, numbers may not add up precisely.

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(K)	Employees by Region and Functional Areas
Full-time equivalents	6/30/2022				6/30/2021
---	---	---	---	---	---	---	---	---
	EMEA	Americas	APJ	Total	EMEA	Americas	APJ	Total
Cloud<br> and software	5,978	4,570	5,157	15,705	5,859	4,456	5,029	15,345
Services	8,304	5,516	5,864	19,684	8,264	5,627	6,102	19,993
Research<br> and development	15,920	6,348	10,677	32,945	14,489	6,162	10,021	30,672
Sales and<br> marketing	11,983	12,394	5,691	30,068	10,607	10,765	4,991	26,363
General and<br> administration	3,423	2,271	1,252	6,945	3,452	2,184	1,187	6,823
Infrastructure	2,780	1,405	877	5,061	2,588	1,299	792	4,679
SAP Group (6/30)	48,388	32,504	29,518	110,409	45,261	30,493	28,123	103,876
Thereof<br> acquisitions^1^	173	214	8	395	377	43	26	446
SAP Group (six months' end average)	47,842	32,354	29,456	109,652	44,741	30,332	28,021	103,094

^1^Acquisitions closed between January 1 and June 30 of the respective year

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OtherDisclosures

(L)	Financial Income, Net

In the second quarter of 2022, finance income mainly consisted of gains from disposals and fair value adjustments of equity securities totaling €146 million (Q2/2021: €985 million) and €463 million in the first half 2022 (HY1/2021: €1,515 million).

In the second quarter of 2022, finance costs were primarily impacted by losses from disposals and fair value adjustments of equity securities amounting to €225 million (Q2/2021: €67 million) and €543 million in the first half 2022 (HY1/2021: €228 million).

(M)	Business Combinations

Taulia

On January 27, 2022, SAP announced its intent to acquire a majority stake of Taulia, a leading provider of working capital management solutions. The acquisition closed on March 9, 2022, following satisfaction of customary closing conditions and regulatory approvals; the operating results and assets and liabilities are reflected in our consolidated financial statements starting on that date. The acquisition is expected to further expand SAP’s business network capabilities and strengthen SAP’s solutions for the CFO office. Consideration transferred amounted to €0.7 billion.

In the second quarter Taulias contribution to revenue was approx. €16 million, to operating profit approx. -€12 million (IFRS) and approx. -€6 million (Non-IFRS).

For more information about Business Combinations, see the Notes to the 2022 Consolidated Half-Year Financial Statements Note (D.1.).

(N)	Share Buyback

In the second quarter of 2022, we acquired 4.3 million treasury shares totaling €419 million and thus completed the 2022 share buyback program.

(O)	Share Based Payments

Starting in 2022, most of the granted share units under the Move SAP plan will vest after a waiting period of six months and ratably thereafter for ten quarters. Under our previous policy, we serviced obligations arising from the plan with cash payments, but we have since decided to settle future share units predominantly in shares.

In the first six months of 2022, we granted 16.8 million (first six months of 2021: 11.2 million) share units. This includes 14.3 million (first six months of 2021: 0) 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.

Obligations from outstanding share units granted before 2022 under the Move SAP plan will continue to be settled in cash and the settlement methods of SAP’s other plans remain unchanged.

Under the Own SAP plan, employees can purchase, on a monthly basis, SAP shares without any required holding period. As part of SAP’s 50th anniversary celebration SAP's contribution was doubled from 40% to 80% from January to March 2022. The number of shares purchased by our employees under this plan was 4.6 million in the first six months of 2022 (first six month of 2021: 2.9 million).

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Exhibit99.2

SAPHalf-Year Report

2022

Tableof Contents

Introductory<br> Notes	3
Consolidated<br> Half-Year Management Report	4
Consolidated<br> Half-Year Financial Statements – IFRS	22
Supplementary<br> Financial Information	48
General<br> Information	54
Additional<br> Information	56

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IntroductoryNotes

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 with 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 information, 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, condensed 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 2021, presents significant events and transactions of the first half of 2022, and updates the forward-looking information as well as significant non-financial key figures contained in our Management Report 2021. 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 2022. Both the 2021 consolidated Financial Statements and the 2021 Management Report are part of our Integrated Report 2021, which is available at www.sapintegratedreport.com.

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 independent auditor.

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ConsolidatedHalf-Year Management Report

Strategy & Business Model

SAP continues to execute on the strategy and business model as described in the SAP Integrated Report 2021to “REINVENT how the world runs as a network of intelligent, sustainable enterprises.”

Our Product Strategy

SAP has the technologies, products, footprint, and experience to combine four essential end-to-end business processes to create not just one intelligent enterprise, but a global ecosystem of intelligent enterprises. Those processes – Recruit to Retire, Source to Pay, Design to Operate, and Lead to Cash – are supported by our products.

The most prominent building blocks of our product portfolio are SAP S/4 HANA Cloud, SAP SuccessFactors Human Experience Management(HXM) Suite, our Intelligent Spend Management program, SAP Customer Experience (CX) solutions, SAP Business Technology Platform (SAP BTP), industry cloud, SAP Business Network, our BusinessProcess Intelligence (BPI) application portfolio, and our sustainability management solutions.

Innovations in the first half of 2022

At our flagship conference SAP Sapphire, we announced four key areas of innovation: building resilient supply chains and business networks, enabling business process transformation, moving from talk to action on sustainability, and accelerating innovation with no-code and low-code application development, process automation, data, and artificial intelligence (AI).

This section summarizes SAP’s product development and services innovation for the first half of 2022 and is intended to supplement the SAP Integrated Report 2021.

SAP S/4HANA Cloud

In May 2022, SAP S/4HANA Cloud was named a leader in both the Operational ERP and Manufacturing ERP Applications categories by the IDC MarketScape: Worldwide SaaS and Cloud-Enabled 2022 Vendor Assessments. At SAP Sapphire, SAP announced the launch of SAP Digital Manufacturing Cloud, a solution designed to help customers optimize manufacturing performance by integrating production execution, visibility, and analysis. Additionally, SAP and Apple have expanded their partnership and released a new suite of iOS applications designed to streamline the digital supply chain and equip workers with intuitive tools.

Human Experience Management

The SAP SuccessFactors Compensation solution features new reward and recognition capabilities including mass uploads, custom points, and multiple wallets. In addition, new mobile functionality aims to enable employees to navigate to and review details for online courses in the SAP SuccessFactors Learning solution, and to explore mentor programs in the SAP SuccessFactors Opportunity Marketplacesolution.

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Intelligent Spend Management

New product sourcing solutions from SAP that run natively on SAP S/4HANA are now available to help companies in the automotive and industrial machinery and components (IM&C) industries. These solutions aim to enable companies to collaborate more effectively with suppliers to plan and execute direct materials sourcing and procurement programs.

Customer Experience

SAP launched a new API-first, microservices-based SAP Service Cloud solution that aims to bring seamless end-user experiences and improved flexibility with built-in low-code/no-code tools. Furthermore, we continue to invest in our SAP Commerce Cloud solution, delivering on the following improvements and features in Release 2205: in-the-moment personalization capabilities, improved usability for business users, and extensibility features that allow businesses to deliver ‘commerce everywhere’ experiences.

SAP Business Technology Platform

SAP BusinessTechnology Platform is a unified technology platform that brings together capabilities across application development, data and analytics, integration, and AI. This platform aims to help developers, business users, and our ecosystem store and manage data, derive insights, and build, extend, and integrate applications. SAP BTP also serves to optimize and automate business processes in and beyond SAP landscapes.

Recent innovations include faster no-code application development capabilities and deeper integration with SAP applications through the SAP AppGyvertool, as well as new SAP Process Automation capabilities to further simplify how business users collaborate with developers to build and customize automations. Additionally, new AI-powered innovations enable customers to benefit from ready-to-use intelligence to transform core business processes. New, prebuilt industry content and APIs in SAP Integration Suite aim to help customers across all industries simplify integration between applications.

SAP Business Network

A new feature on SAP Business Network enables suppliers to complete a human rights self-assessment to demonstrate compliance with human rights due diligence laws, such as the German Supply Chain Act (Lieferkettensorgfaltspflichtengesetz). This law goes into effect in January 2023. Buyers on the network can search, find, and engage with suppliers that have shared their self-assessment.

In March 2022, SAP acquired Taulia, a provider of working capital management solutions. With the addition of Taulia’s solutions, SAP S/4HANA Cloud and SAP Business Network can now provide end-to-end support for cash optimization and financing options for companies. For more information, see the Acquisitions section.

Furthermore, an expanded partnership between SAP and the sustainability-ratings provider EcoVadis enables trading partners to add EcoVadis sustainability medals to their marketing profiles on the SAP Business Network. This allows buyers to assess trading partners and take immediate action as required to improve the sustainability of their value chains. Taulia has also partnered with EcoVadis to give SAP customers a way to create financial incentives for their suppliers to become ESG-rated.

Business Process Intelligence

In March 2022, SAP announced that the SAP Signavio brand will represent its portfolio of business process management solutions going forward. SAP also announced the general availability of journey to process analytics. This offering aims to give companies a better understanding of their end-to-end business processes by correlating experience data from Qualtrics user surveys with operational data from underlying IT systems.

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Sustainable Business Solutions and Services

SAP continues to innovate across key areas of enterprise sustainability management, carbon data exchange, and circular and regenerative business. SAP Cloud for Sustainable Enterprises, launched in January 2022, is a broad portfolio of solutions designed to enable companies to measure, manage, and optimize their sustainability performance based on a flexible implementation according to the customer’s unique sustainability requirements.

Experience Management

In the first half of 2022, Qualtrics launched XM Discover. This new set of products – deploying conversational analytics and natural language processing capabilities – aims to help organizations understand and respond to everything that is being communicated about them across every channel. Qualtrics and SAP also announced a new integration that brings the AI and machine learning capabilities of XM Discover into the SAP Service Cloud solution, whereby XM Discover analyzes all incoming feedback from structured and unstructured sources, such as agent notes, support conversations, chats, social media posts, and review sites.

Services and Support

SAP announced in April 2022 that it had simplified its cloud services and support portfolio by focusing on customer adoption and consumption. The portfolio is built for the cloud and designed to help customers realize value quickly, while achieving lasting success.

The updated portfolio aims to offer customers new experiences, extensions, and services to address their individual needs and make it easier for them to engage with SAP. SAP’s well-established offerings including SAP MaxAttention, SAP Preferred Success, and SAP Enterprise Support, to name a few, will remain and continue to evolve.

Business Conduct

We rolled out a Global AI Ethics Policy in January 2022, as we continue to integrate AI into our solutions and evolve our software development process. This policy was put in place to help ensure that our AI systems and solutions are developed, deployed, and sold in line with the ethical standards laid out in our guiding principles. The policy also complements existing guiding principles regarding AI and will ensure that the use of AI at SAP is governed by clearly defined rules of ethics.

Our Investments in Innovation

Investment in R&D

SAP’s strong commitment to R&D is reflected in our expenditures (see the graphic below).

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In the first half of 2022, our IFRS R&D ratio, reflecting R&D expenses as a portion of total operating expenses, increased one percentage point (pp) to 23% (first half of 2021: 22%). Our non-IFRS R&D ratio remained constant at 24% year over year. At the end of the first half of 2022, our total full-time equivalent (FTE) headcount in development was 32,945 (first half of 2021: 30,672). Measured in FTEs, our R&D headcount was 30% of total headcount (first half of 2021: 30%).

Competitive Intangibles

Some of the resources that are the basis for our current as well as future success, such as our ability to innovate, software we developed ourselves, customer capital, our employees and their knowledge and skills, our ecosystem of partners, and the brands we have built up, do not appear in the Consolidated Statements of Financial Position. This is apparent from a comparison of the market capitalization of SAP SE with the carrying amount of our equity. With a market capitalization of €106.8 billion at the end of the first half of 2022, the market value of our equity (based on all outstanding shares) is more than two times higher than its carrying amount.

SAP was recognized as the world’s 31st most valuable brand in the 2022 BrandZ Global Top 100 Most Valuable Global Brands ranking (2021: 26). The ranking estimates SAP’s brand value at US$69 billion, unchanged from the prior year.

Acquisitions

On March 10, 2022, SAP announced that it had completed the acquisition of a majority stake of Taulia, a leading provider of working capital management solutions. Taulia further expands SAP’s business network capabilities and strengthens SAP’s solutions for the CFO office by providing working capital management cloud solutions. For more information, see the Notes to the Consolidated Half-Year Financial Statements, Note (D.1).

FinancialPerformance: Review and Analysis

Economy and the Market

Global Economic Trends

During the first half of 2022, global economic activity moderated, reports the European Central Bank (ECB) in its most recent Economic Bulletin.^1^Thus, it has revised its earlier projections from the beginning of the year downward.

In particular, the consequences of the war in Ukraine reach well beyond those countries and regions that are closely associated with Russia and Ukraine: it has disrupted trade and led to shortages of materials. Prices for energy, commodities, and food have increased strongly, causing inflation pressures to broaden and intensify.

As for the pandemic, following a brief easing of the pandemic at the beginning of the year, monetary policy normalized in many countries and contributed to tighter financial conditions. Renewed pandemic restrictions in China, however, disrupted economic activity again, particularly in Asia, and put pressure on global supply chains. Commodity prices remain volatile and subject to supply risks.

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The IT Market

In the middle of 2022, “demand from enterprises and service providers for IT investments remains strong,” finds International Data Corporation (IDC), a U.S.-based market research firm.^2^ At the same time, “inflation is already having some impact on consumer IT markets” and “IT supply chain disruptions continue to heavily concern businesses.” According to IDC, “Broader geopolitical and societal issues, such as the war [in Ukraine], labor shortage, and the continuation of the pandemic are also cited as concerns by most companies.”

In the first half of 2022, “software [was] still utilized as a direct driver of cost saving measures” and was “less susceptible to inflationary forces,” finds IDC. Therefore, currently, “demand is extremely strong” with “cloud as an operating and business model […] reshaping the fundamentals of the IT industry.” This is in accordance with IDC’s projections that we referred to in our Integrated Report 2021. However, IDC also points out that “IT services show signs of impact from wage expectations/labor costs.”

Sources:

^1^ European Central Bank, Economic Bulletin, Issue 4/2022, publication date: June 23, 2022 (https://www.ecb.europa.eu/pub/pdf/ecbu/eb202204.en.pdf)

^2^ IDC Webinar, State of the Market: Inflation Impact on IT Spending and the Cloud, May 19, 2022

Impact on SAP

In the first six months, SAP continued strong execution of its strategy. In particular, cloud and software revenue accelerated due to the strong performance of SaaS/PaaS solutions, with a return to growth in the Intelligent Spend category. Cloud revenue has now become the largest revenue stream. A further sign of the success of SAP’s strategy is the continued growth of current cloud backlog (CCB), exceeding the €10 billion mark for the first time. As expected, software licenses and support revenue experienced a further decrease as more customers move to SAP’s cloud subscription offerings.

At the same time, SAP’s business was negatively impacted by the war in Ukraine and the decision to wind down its business operations in Russia and Belarus. In the first quarter, CCB was lower than expected due to the termination of existing cloud engagements from Russian cloud contracts, whereas in the second quarter, CCB reaccelerated again due to continued strong momentum in new cloud order intake outside the region. IFRS and non-IFRS operating profit declined in both the first and second quarter mainly due to reduced software licenses and support revenues and bad debt reserves recorded on trade receivables. As a result, non-IFRS operating profit was down 8% year over year in the first half year. IFRS operating profit was additionally affected by restructuring expenses mainly incurred due to severance payments to employees in Russia and Belarus and to impairments of assets. As at the end of the second quarter of 2022, SAP has absorbed the main impact of the exit from this market. Also, free cash flow for the first six months declined versus 2021. This is mainly attributable to the development of profitability and impacts from working capital due to SAP’s continuing transition to the cloud.

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PerformanceAgainst Our Outlook for 2022

In this section, all discussion of the contributions to target achievement is based either on IFRS or 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 from IFRS measures to non-IFRS measures in the SupplementaryFinancial Information section.

Outlook for 2022 (Non-IFRS)

For our outlook based on non-IFRS numbers, see the Financial Targets and Prospects section in this consolidated Half-Year Management report.

Key Figures – SAP Group in the First Half of 2022 (IFRS and Non-IFRS)

	IFRS			Non-IFRS
€<br> millions, unless otherwise stated	Q1–Q2<br><br> <br>2022	Q1–Q2<br><br> <br>2021	∆<br> in %	Q1–Q2<br><br> <br>2022	Q1–Q2<br><br> <br>2021	∆<br> in %	∆<br> in %<br><br> <br>constant<br><br> <br>currency
Current<br> Cloud Backlog	NA	NA	NA	10,403	7,766	34	25
Thereof<br> SAP S/4HANA current cloud backlog	NA	NA	NA	2,258	1,130	100	87
Cloud	5,876	4,421	33	5,876	4,421	33	25
Thereof<br> SAP S/4HANA Cloud	876	485	81	876	485	81	71
Software<br> licenses	743	1,133	–34	743	1,133	–34	–38
Software<br> support	5,900	5,624	5	5,900	5,624	5	0
Cloud<br> and software	12,519	11,178	12	12,519	11,178	12	6
Total<br> revenue	14,594	13,017	12	14,594	13,017	12	6
Operating<br> expenses	–12,868	–11,073	16	–11,236	–9,357	20	13
Operating<br> profit	1,726	1,944	–11	3,358	3,660	–8	–12
Operating<br> margin (in %)	11.8	14.9	–3.1pp	23.0	28.1	–5.1pp	–4.8pp
Profit<br> after tax	835	2,519	–67	2,259	3,934	–43	NA
Effective<br> tax rate (in %)	43.7	19.8	23.9pp	27.5	19.0	8.5pp	NA
Earnings<br> per share, basic (in €)	0.92	2.03	–55	1.96	3.14	–37	NA

Performance (IFRS and Non-IFRS)

As at June 30, 2022, CCB (non-IFRS) was €10,403 million (first half of 2021: €7,766 million), an increase of 34% year over year (25% at constant currencies). Thereof, our SAP S/4HANA CCB (non-IFRS) was €2,258 million as at June 30, 2022, an increase of 100% year over year (87% at constant currencies). CCB (non-IFRS) decreased approximately €64 million as at June 30, 2022 due to the termination of existing cloud engagements in Russia and Belarus, dampening CCB growth by approximately 1pp at constant currencies.

Our cloud revenue (IFRS) was €5,876 million (first half of 2021: €4,421 million), an increase of 33% (25% at constant currencies, non-IFRS) compared to the same period in 2021. Thereof, our SAP S/4HANA cloud revenue (IFRS) was €876 million (first half of 2021: €485 million), an increase of 81% (71% at constant currencies, non-IFRS). Our cloud gross margin (IFRS) increased 1.7pp to 69.0% (first half of 2021: 67.3%). Our cloud gross margin (non-IFRS) increased 1.2pp to 71.0% (first half of 2021: 69.8%).

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Cloud and software revenue (IFRS) was €12,519 million (first half of 2021: €11,178 million), an increase of 12%. On a constant currency basis (non-IFRS), the increase was 6%. This increase was mainly driven by cloud revenue growth. Software licenses revenue (IFRS) decreased 34% (38% at constant currencies, non-IFRS) as more customers selected SAP’s cloud offerings such as RISE with SAP. Software support revenue (IFRS) was €5,900 million (first half of 2021: €5,624 million), an increase of 5% (flat at constant currencies, non-IFRS).

Services revenue (IFRS) was €2,075 million (first half of 2021: €1,839 million), an increase of 13% (7% at constant currencies, non-IFRS).

Total revenue (IFRS) was €14,594 million (first half of 2021: €13,017 million), an increase of 12% (6% at constant currencies, non-IFRS).

Operating Expense (IFRS)

Our operating expenses increased 16% to €12,868 million (first half of 2021: €11,073 million) mainly due to accelerated investments for example into research & development and sales and marketing to capture future growth opportunities and Russia exit costs.

Cost of cloud increased 28%, also related to customers migrating from on premise to cloud, mainly to our RISE with SAP offerings. Additionally, we continued to invest in our next generation cloud delivery program. The cost of software licenses and support decreased 10%, mainly due to software revenue decline across all the regions. The cost of services increased 15%, as COVID-19-related travel restrictions were eased across the globe and personal customer visits and on-site trainings were possible again.

In the first half of 2022, restructuring costs amounted to €119 million (first half of 2021: €164 million) mainly due to a new restructuring program we launched in the second quarter to further advance our structured exit from Russia and Belarus. The restructuring expenses mainly relate to severance payments to employees in Russia and Belarus and further impairments of assets, such as data center equipment, right-of-use assets for leased office buildings, and capitalized sales commissions. The increase of restructuring expenses versus prior expectations is due to the appreciation of the Russian ruble over the past quarter. For more information about restructuring, see the Notes to the Consolidated Half-Year Financial Statements, Note (B.4).

Share-based payment expenses decreased to €1,184 million (first half of 2021: €1,256 million), mainly due to the SAP share price drop. For more information about share-based payment expenses, see the Notes to the Consolidated Half-Year Financial Statements, Note (B.3).

Operating Expense (Non-IFRS)

Operating expenses (non-IFRS) were €11,236 million (first half of 2021: €9,357 million), an increase of 20% (13% on a constant currency basis). The operating expenses (non-IFRS) were mainly impacted by the same effects as described above in the “Operating Expense (IFRS)” section, except for restructuring expenses and share-based payments.

Operating Profit and Operating Margin (IFRS)

Compared with the same period in the previous year, our operating profit decreased €219 million to €1,726 million (first half of 2021: €1,944 million), a decrease of 11%. This decrease was mainly driven by reduced software licenses and support revenues across predominately all regions as well as bad debt reserves recorded on trade receivables, mainly in Russia and Belarus. For more information about trade and other receivables, see the Notes to the Consolidated Half-Year Financial Statements, Note (A.2). Operating profit was also affected by restructuring expenses as described above in the “Operating Expense (IFRS)” section. The overall impact of the war in Ukraine on IFRS operating profit was approximately €350 million and lowered the IFRS operating profit growth by approximately 18pp.

Our operating margin decreased 3.1pp to 11.8% (first half of 2021: 14.9%).

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Operating Profit and Operating Margin (Non-IFRS)

Operating profit (non-IFRS) was €3,358 million (first half of 2021: €3,660 million), a decrease of 8%. On a constant currency basis, the decrease was 12%. The operating profit (non-IFRS) was negatively impacted by the same effects as described above in the “Operating Profit and Operating Margin (IFRS)” section, except for restructuring expenses. The overall impact of the war in Ukraine on operating profit (non-IFRS) was approximately €230 million and lowered the operating profit growth (non-IFRS) by approximately 6pp (approximately 5pp at constant currencies).

Operating margin (non-IFRS) was 23.0%, a decrease of 5.1pp, or 4.8pp on a constant currency basis (first half of 2021: 28.1%).

Profit After Tax and Earnings per Share (IFRS)

Profit after tax was €835 million (first half of 2021: €2,519 million), a decrease of 67% compared to the same period in 2021. Basic earnings per share was €0.92 (first half of 2021: €2.03), a decrease of 55% mainly reflecting a contribution to financial income by Sapphire Ventures that was lower than over the same period in 2021 based on current market conditions.

The effective tax rate was 43.7% (first half of 2021: 19.8%). The year-over-year increase mainly resulted from changes in tax-exempt income and nondeductible expenses. Furthermore, the prior year’s effective tax rate was positively impacted by a one-time change in deferred tax liabilities for taxable temporary differences associated with investments in subsidiaries.

Profit After Tax and Earnings per Share (Non-IFRS)

Profit after tax (non-IFRS) was €2,259 million (first half of 2021: €3,934 million), a decrease of 43%. Basic earnings per share (non-IFRS) was €1.96 (first half of 2021: €3.14), a decrease of 37% mainly resulting from a contribution to financial income by Sapphire Ventures that was lower than over the same period in 2021 based on current market conditions.

The effective tax rate (non-IFRS) was 27.5% (first half of 2021: 19.0%). The year-over-year increase mainly resulted from changes in tax-exempt income. Furthermore, the prior year’s effective tax rate was positively impacted by a one-time change in deferred tax liabilities for taxable temporary differences associated with investments in subsidiaries.

Reconciliation of Cloud Revenues and Margins

€<br> millions, unless otherwise stated	Q1-Q2 2022				Q1-Q2<br> 2021		∆<br> in %
	IFRS	Non-<br><br> IFRS	Currency<br><br> Impact	Non-IFRS<br><br> Constant<br><br> Currency	IFRS	Non-<br><br> IFRS	IFRS	Non-<br><br> IFRS	Non-IFRS<br><br> Constant<br><br> Currency^4^
Cloud<br> revenue – SaaS^1^	4,644	4,644	–298	4,347	3,489	3,489	33	33	25
Cloud<br> revenue – PaaS^2^	739	739	–37	703	493	493	50	50	43
Cloud<br> revenue – IaaS^3^	492	492	–26	466	439	439	12	12	6
Cloud<br> revenue	5,876	5,876	–361	5,515	4,421	4,421	33	33	25
Cloud<br> gross margin – SaaS^1^ (in %)	72.0	74.4		74.2	69.7	72.6	2.3<br> pp	1.8<br> pp	1.6<br> pp
Cloud<br> gross margin – PaaS^2^ (in %)	78.8	78.8		79.9	80.7	80.8	–1.9<br> pp	–2.0<br> pp	–0.9<br> pp
Cloud<br> gross margin – IaaS^3^ (in %)	26.2	27.3		30.0	33.8	35.0	–7.6<br> pp	–7.7<br> pp	–5.0<br> pp
Cloud<br> gross margin (in %)	69.0	71.0		71.2	67.3	69.8	1.7<br> pp	1.2<br> pp	1.4<br> pp

^1^ Software as a service

^2^ Platform as a service

^3^ Infrastructure as a service

^4^Constant currency period-over-period changes are calculated by comparing the current year’s non-IFRS constant currency numbers with the non-IFRS numbers of the previous year’s respective period.

Due to rounding, numbers may not add up precisely.

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Segment Information

At the end of the first half of 2022, SAP had five operating segments: the Applications, Technology & Services segment, the Qualtrics segment, the Emarsys segment, the SAP Signavio segment, and the Taulia segment. Due to their size, however, Emarsys, SAP Signavio, and Taulia are non-reportable segments.

For more information about our segment reporting and the changes in the composition of our segments in the first half of 2022, see the Notes to the Consolidated Half-Year Financial Statements, Notes (C.1) and (C.2).

Applications, Technology & Services

€<br> millions, unless otherwise stated<br><br> <br>(non-IFRS)	Q1–Q2 2022		Q1–Q2<br> 2021	∆<br> in %	∆<br> in %
	Actual<br><br> <br>Currency	Constant<br><br> <br>Currency	Actual<br><br> <br>Currency	Actual<br><br> <br>Currency	Constant<br><br> <br>Currency
Cloud<br> revenue	5,199	4,891	4,015	29	22
Cloud<br> gross margin (in %)	68.7	69.1	67.9	0.7pp	1.1pp
Segment<br> revenue	13,804	13,113	12,519	10	5
Segment<br> gross margin (in %)	72.4	72.5	73.4	–1.0pp	–0.8pp
Segment<br> profit (loss)	4,149	3,986	4,523	–8	–12
Segment<br> margin (in %)	30.1	30.4	36.1	–6.1pp	–5.7pp

In the first half of 2022, the Applications, Technology & Services segment significantly increased its cloud revenue by 29.5% (21.8% at constant currencies), driven by a strong performance of SAP S/4HANA and SAP Business Technology Platform. At the same time, the cloud gross margin slightly increased 0.7pp (1.1pp at constant currencies). Software support revenue increased 4.9% (0.4% at constant currencies), whereas software licenses revenue decreased 34.6% (37.7% at constant currencies) to €740 million. Consequently, the Applications, Technology & Services segment achieved a total software licenses and support revenue of €6,640 million, declining 1.7% (5.9%at constant currencies). While total segment revenue increased 10.3% (4.7% at constant currencies) to €13,804 million, total segment expenses grew 20.8% to €9,655 million, leading to a decrease in the segment margin of 6.1pp (5.7pp at constant currencies) to 30.1%. Overall, the revenue share of more predictable revenue streams in this segment increased 3.4pp from 77.0% in the first half of 2021 to 80.4% in the first half of 2022.

Qualtrics

€<br> millions, unless otherwise stated<br><br> <br>(non-IFRS)	Q1–Q2 2022		Q1–Q2<br> 2021	∆<br> in %	∆<br> in %
	Actual<br><br> <br>Currency	Constant<br><br> <br>Currency	Actual<br><br> <br>Currency	Actual<br><br> <br>Currency	Constant<br><br> <br>Currency
Cloud<br> revenue	548	500	333	65	50
Cloud<br> gross margin (in %)	89.1	89.0	92.3	–3.2pp	–3.3pp
Segment<br> revenue	650	592	413	57	43
Segment<br> gross margin (in %)	78.1	78.0	80.0	–1.8pp	–2.0pp
Segment<br> profit (loss)	26	30	26	2	17
Segment<br> margin (in %)	4.1	5.1	6.3	–2.2pp	–1.2pp

The Qualtrics segment, which comprises SAP’s experience management solutions, closed the first half of 2022 with strong growth in total segment revenue of 57.4% (43.3% at constant currencies). The positive development was mainly influenced by the strong cloud revenue growth of 64.6% (50.0% at

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constant currencies) to €548 million. The cloud gross margin decreased 3.2pp (3.3pp at constant currencies) to 89.1%. Overall, the Qualtrics segment profit increased 1.5% (16.7% at constant currencies) to €26 million in the first half of 2022. The corresponding segment margin decreased 2.2pp (1.2pp at constant currencies) to 4.1%. Overall, the revenue share of more predictable revenue streams in this segment increased 3.7pp from 80.7% in the first half of 2021 to 84.4% in the first half of 2022.

Finances and Assets (IFRS)

Cash Flow

€<br> millions	Q1–Q2<br> 2022	Q1–Q2<br> 2021	∆
Net<br> cash flows from operating activities	2,750	3,771	–27%
Capital<br> expenditure	–456	–344	33%
Payments<br> of lease liabilities	–215	–176	22%
Free<br> cash flow	2,079	3,251	–36%
Free<br> cash flow (as a percentage of total revenue)	14	25	–11
Free<br> cash flow (as a percentage of profit after tax)	249	129	120

The lower operating cash flow was mainly attributable to the development of profitability and changes in working capital due to SAP’s continuing move to the cloud as well as higher share-based payments (€140 million increase year over year), compensated by lower payments for income taxes (€62 million decrease year over year).

Group Liquidity

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Liquidity and Financial Position

€<br> millions	6/30/2022	12/31/2021	∆
Financial<br> debt	12,282	13,094	–812
Cash<br> and cash equivalents	7,492	8,898	–1,406
Current<br> time deposits and debt securities	764	2,632	–1,868
Group<br> liquidity	8,256	11,530	–3,274
Net<br> debt	4,026	1,563	+2,462
Goodwill	33,913	31,090	+2,823
Total<br> assets	75,575	71,169	+4,406
Total<br> equity	42,787	41,523	+1,263
Equity<br> ratio (total equity as a percentage of total assets)	57	58	–2pp

In March 2022, we repaid €900 million in Eurobonds. As at June 30, 2022, we had issued €930 million under our Commercial Paper (CP) program with short-term maturities.

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Employeesand Social Investments

Globalization, demographic change, and increasing digitalization are constantly changing the way we work. At the same time, workers’ attitudes and expectations of their working environments and of their employer have shifted, and the competition for top talent has intensified. A new era in the way we work has begun. For a detailed description of our People Strategy, see the Employees and Social Investments section in our Integrated Report 2021.

To remain successful in this new environment, retain the best staff, and attract new employees, SAP has rolled out Pledge to Flex, a hybrid working model that empowers employees to balance when, how, and where they work best, considering business requirements and local legislation. At the same time, the approach aims to foster easy and smooth collaboration, regardless of where our people are located. With this commitment, we continue to put focus on our employees’ health and well-being, complementing other initiatives specific to mental health and burnout. Further, we not only see great potential in upgrading our work environment but also in upskilling our employees as we accelerate to the cloud.

Our SAP Learning organization partnered with the SAP Corporate Social Responsibility (SAP CSR) team to create OpportunityFor All, providing scholarships to Ukrainian refugees and certifications to underrepresented youth in 2023. We will donate one scholarship for every 50,000 hours of internal learning completed and one certification voucher for every employee who completes 50 hours of learning in 2022. With over 1.6 million hours of learning completed to date, we are halfway towards our scholarship goal of 2.5 million hours. In late 2021, we also brought together our portfolio of well-established learning offerings and launched the SAP LearningSite training platform for learners in our ecosystem to cultivate and stay current on SAP skills. In May, we announced freeaccess for all academic students to tailored learning resources and experiences in the “student zone” of SAP Learning Site. To support the growing need for accelerated app development by non-technical users, we also added additional free learningjourneys, including an enhanced learning journey that prepares users for new certifications in low-code/no-code skills.

We truly believe that our people are the heart of our organization. Therefore, in light of Russia’s ongoing and unjustified waragainst Ukraine, SAP has stepped up, over and above its responsibility as an employer. In this situation, safety and protection of our employees in the region is of utmost importance. For employees and their families who chose to leave Ukraine, SAP provided logistical support to try and make this incredibly difficult step as easy as possible. We also offered financial support for Ukrainian employees – whether they decided to stay or leave the country.

Looking at our people-related KPIs, the Employee Engagement Index comes in at 81%, a slight decrease of 2pp compared to the 83% published in our Integrated Report 2021. Our Leadership Trust Net Promoter Score, meanwhile, reached a new all-time high of 71 in the first six months of 2022 (+4 points). Finally, the Business Health Culture Index remains strong at 81%. At the end of the first half of 2022, SAP’s Employee Retention Rate was still high at 91.6% (compared to 94.8% at the end of the first half of 2021 and 92.8% at the end of 2021). We define retention as the ratio of the average number of employees minus the employees who voluntarily departed, to the average number of employees (in full-time equivalents, FTEs). We also continue to foster an inclusive, bias-free workforce. The ratio of Women in Management continued its upward trend, reaching 28.8% at the end of the first half of 2022 compared to 27.9% at the end of June 2021 and 28.3% at the end of 2021. On June 30, 2022, we had 110,409 FTEs worldwide (June 30, 2021: 103,876; December 31, 2021: 107,415). For a breakdown of headcount by function and geography, see the Notes to the Consolidated Half-Year Financial Statements, Note (B.1).

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Energyand Emissions

In the first half of 2022, we continued our commitment to help rebuild a more resilient, restorative, and inclusive economy within the planetary boundaries – both as an enabler and exemplar. To prevent further irreversible damage from climate change, we accelerated our commitment to net-zero and are now aiming to achieve net-zero along our value chain in line with a 1.5°C future in 2030 – 20 years earlier than originally targeted. Net-zero by 2030 is also one of the key pillars of our recently updated Global Environmental Policy which aims to promote nature-positive mechanisms and behaviors in our day-to-day operations, such as minimizing greenhouse gas emissions, reducing water consumption, eliminating electronic waste, accelerating innovations, and cultivating employee awareness.

The transition to a circular economy remains central to our vision for a world of zero waste and plastic free oceans by 2030. We formed a Circular Economy partnership with the Ellen MacArthur Foundation to deliver regenerative business, and joined the Partnership for Carbon Transparency (PACT) under the leadership of the World Business Council for Sustainable Development to foster cross-industry transparency on greenhouse gas emissions and corporate climate accountability. Our continued journey towards planting 21 million trees by the end of 2025 is another invaluable cornerstone in maintaining the health and stability of our planet.

In addition, we further strengthened and scaled our vital global sustainability ecosystem by adding new partnerships, such as with the BostonConsulting Group, Bearing Point, and EcoVadis.

To help our customers achieve zero waste, zero emissions, and zero inequality, we offer a comprehensive portfolio of sustainable business solutions. For more information, see the Our Product Strategy section in this consolidated Half-Year Management Report.

SAP’s carbon emissions for the first half of 2022 totaled 45 kilotons (kt), the same amount as in the first half of 2021. Even though we have continued our strategic avoid - reduce - compensate approach, the emission level has not decreased as expected due to a strong resurgence in business travel activities. To gain insight into our efficiency as we grow, we also measure our emissions per employee and per euro of revenue. At the end of the first half of 2022, our carbon emissions (in tons) per employee was 1.0 (compared to 0.9 tons at the end of the first half of 2021), and our carbon emissions (in grams) per euro revenue was 3.6 (compared to 3.6 grams at the end of the first half of 2021) (rolling four quarters).

SAP’s environmental, social, and governance (ESG) efforts – along with its measures, initiatives, and targets – have been recognized by the world’s most trusted business sustainability ratings and ranking organizations:

–	SAP<br> received the top score in all three ESG quality dimensions by the Institutional Shareholder<br> Services (ISS) ESG, upholding its prime status (B rating). As a result, SAP is among the<br> top percentile.
–	SAP<br> once again received the top score “A” in CDP’s climate change assessment<br> and was recognized as a CDP Supplier Engagement Leader.
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–	We<br> ranked 55th in Corporate Knights’ Global 100 Most Sustainable Corporations in the World.
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–	In<br> Moody’s ESG Solutions assessment, SAP maintained the highest of four performance levels<br> (“advanced”) and ranked 2nd of 83 in its sector, upholding SAP’s listing<br> in the Euronext Vigeo indices Europe 120 and Eurozone 120.
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RiskManagement 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 appropriate action, and mitigate any risks that materialize as presented in the Risk Management and Riskschapter in our Integrated Report 2021 and our Annual Report on Form 20-F for 2021.

In this section, we present relevant changes and new developments with regards to our risk factors. For changes in our Litigation, Claims, and Legal Contingencies since our last Integrated Report, see the Notes to the Consolidated Half-Year Financial Statements, Note (G.1).

	Probability	Impact	Risk<br> Level
Global<br> Economic & Political Environment
Integrated<br> Report 2021	Likely	Major	Medium
Half-Year<br> Report 2022	Likely	Business-Critical	High
Cybersecurity<br> and Security
Integrated<br> Report 2021	Likely	Business-Critical	High
Half-Year<br> Report 2022	Likely	Business-Critical	High

GlobalEconomic & Political Environment

An increase in the risks aggregated under the Global Economic & Political risk factor was anticipated in the Integrated Report 2021. This has now materialized as a result of Russia’s invasion of Ukraine and SAP’s subsequent exit from the Russian and Belarus market and the continued global COVID-19 pandemic impacts. Both factors have fueled and are continuing to fuel increasing worldwide inflation. These, together with continued world-wide supply chain challenges, could lead to economic recession in certain countries, regions, or even globally. We have identified and partly completed certain additional mitigation steps.

We have raised our estimate of the potential impact of this risk factor to business-critical. The probability of its occurrence remains likely. We cannot exclude the possibility that if these risks were to occur, they could have a business-critical impact on our operations, financial position, profit, and cash flows. We classify this risk factor as high.

Cybersecurityand Security

SAP continuously assesses cybersecurity risks and evaluates the security risks impacted by Russia's invasion of Ukraine specifically for SAP's gradual exit from Russia and Belarus. SAP recognizes the potential increase in cybersecurity threats following SAP's exit. SAP experienced increased cyberattacks against SAP's customers, suppliers and partners - including attacks on networks, devices, and cloud infrastructure that impact critical infrastructures - which could have an impact on SAP as a provider. Given the increasing frequency and severity of cyberattacks involving SAP, to its customers and suppliers, the potential impact of this risk factor remains business-critical with a probability of likely. Therefore, SAP continues to classify this as a high risk.

Risk ManagementAssessment

Based on our aggregation approach and taking into consideration the mitigations implemented for all our risk factors and risks, we subsequently see no material change relative to our 2022 risk assessment or 2022 risk-bearing capacity. We do not believe that any of the risks we identified in our Integrated Report 2021 and Annual Report on Form 20-F for 2021, and as outlined in the update above, jeopardize our ability to continue as a going concern.

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ExpectedDevelopments and Opportunities

Future Trends in the Global Economy

There will be two key headwinds to worldwide economic activity in the near term, predicts the ECB in its latest Economic Bulletin^1^: the war in Ukraine and renewed pandemic containment measures in China. The ECB expects these factors to lead to a much weaker, though still positive growth for the remaining part of 2022.

These headwinds are likely to result in supply chain disruptions, shortages of materials, and high prices for energy and commodities. However, the ECB expects the negative impacts to dissipate after 2022, enabling economic growth above historical-average rates in the medium term. Positive impact might result from the reopening of those sectors most affected by the pandemic, a strong labor market, and savings accumulated during the pandemic which serve as a buffer.

However, inflation could remain elevated for some time, assumes the ECB. Therefore, it projects interest payments to increase and make the outlook more adverse. Inflation might decline only gradually over the coming years as energy costs could moderate, supply disruptions could ease after the pandemic, and monetary policy could normalize further.

Economic Trends

GDP Growth Year Over Year

%	2021	2022p	2023p
World	6.1	3.6	3.6
Advanced<br> Economies	5.2	3.3	2.4
Emerging<br> Markets and Developing Economies	6.8	3.8	4.4
Regions (according to IMF taxonomy)
Euro<br> Area	5.3	2.8	2.3
Germany	2.8	2.1	2.7
Emerging<br> and Developing Europe	6.7	-2.9	1.3
Middle<br> East and Central Asia	5.7	4.6	3.7
Sub-Saharan<br> Africa	4.5	3.8	4.0
United<br> States	5.7	3.7	2.3
Canada	4.6	3.9	2.8
Latin<br> America and the Caribbean	6.8	2.5	2.5
Japan	1.6	2.4	2.3
Emerging<br> and Developing Asia	7.3	5.4	5.6
China	8.1	4.4	5.1
p<br> = projection
Source:<br> International Monetary Fund (IMF), World Economic Outlook April 2022, War Sets Back the Global Recovery (https://www.imf.org/-/media/Files/Publications/WEO/2022/April/English/text.ashx),<br> p. 25.

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TheIT Market:Outlook for 2022 and Beyond

For the remaining part of 2022, International Data Corporation (IDC), a U.S.-based market research firm^2^, expects that demand will continue to outstrip supply, but notes that “storms of disruption are influencing tech spend assumption for many businesses, with most expressing concerns regarding inflation.” At the same time, “supply is a […] constraint on short-term market growth, including for infrastructure investments.” Considering these determining factors, IDC says, “IT leaders around the world anticipate that general inflation and IT supply chain issues will alter cost assumptions” and they “are considering increasing their ICT budgets rather than delaying technology investments.”

IDC predicts that in 2023, SaaS spending will supersede spending on traditional software licenses. Correspondingly, it believes the “whole cloud share of total IT spend” will grow from 40% in 2021 to 53% in 2025.

Sources:

1 European Central Bank, Economic Bulletin, Issue 4/2022, publication date: June 23, 2022 (https://www.ecb.europa.eu/pub/pdf/ecbu/eb202204.en.pdf)

2 IDC Webinar, State of the Market: Inflation Impact on IT Spending and the Cloud, May 19, 2022

Impacton SAP

SAP’s transformation to the cloud continues to drive opportunities for our customers. The ongoing macroeconomic uncertainties due to the war in Ukraine, recurring pandemic waves, and continued supply chain disruption are prompting many customers to reinvent how their businesses run to become more resilient and agile intelligent enterprises. Therefore, SAP is executing on its cloud-led strategy, which is driving accelerating cloud growth through both new business and cloud adoption by existing customers. Our broad solution portfolio, including our modular cloud ERP suite, SAP Business Technology Platform, our industry cloud, SAP Business Network, and our enhanced sustainability portfolio, helps to create unparalleled value not only for our customers but for our entire ecosystem. This strategy resonates with customers even in an increasingly challenging environment. With this, SAP is well positioned to capitalize on an expanding addressable market.

FinancialTargets and Prospects

Revenue and Operating Profit Targets and Prospects (Non-IFRS)

For 2022, SAP now expects:

–

–	€11.55 billion<br> to €11.85 billion in cloud revenue at constant currencies (2021: €9.42 billion),<br> up 23% to 26% at constant currencies.
–	€25.0 billion<br> to €25.5 billion in cloud and software revenue at constant currencies (2021: €24.08 billion),<br> up 4% to 6% at constant currencies.
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–	The<br> share of more predictable revenue (defined as the total of cloud revenue and software support<br> revenue) to reach approximately 78% (2021: 75%).
–	Free<br> cash flow above €4.5 billion (2021: €5.01 billion).
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–	To<br> achieve a year-end current cloud backlog growth rate similar to 2021.
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We continuously strive for profit expansion in all of our operating segments.

While SAP’s full-year 2022 business 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. For the third-quarter and full-year 2022 expected currency impacts, see the table below.

Expected Currency Impact Based on June 2022 Level
In<br> percentage points	Q3	FY
Cloud	8pp<br> to 10pp	7pp<br> to 9pp
Cloud<br> and software	5pp<br> to 7pp	4pp<br> to 6pp
Operating<br> profit	3.5pp<br> to 5.5pp	2.5pp<br> to 4.5pp

The following table shows the estimates of the items that represent the differences between our IFRS financial measures and our non-IFRS financial measures.

Non-IFRS Measures

€<br> millions	Estimated<br> Amounts for<br><br> Full Year 2022	Q1–Q2 2022	Q1–Q2<br><br> 2021
Acquisition-related<br> charges	620–720	328	296
Share-based<br><br> <br>payment<br> expenses	2,500–2,700	1,184	1,256
Restructuring	130–150	119	164

SAP now expects a full-year 2022 effective tax rate (IFRS) of 34.0% to 38.0% (previously: 28.0% to 32.0%). The adjustment mainly results from an updated projection of non-deductible expenses and of the lower 2022 financial income contribution of Sapphire Ventures given current market conditions. As the updated non-deductible expenses are not included in non-IFRS, SAP continues to anticipate a full-year 2022 effective tax rate (non-IFRS) of 23.0% to 27.0% but now expects to be at the upper end of this range.

Medium-TermProspects

The growth in cloud revenue is expected to be driven particularly by our SaaS/PaaS cloud business. In 2025, we expect cloud revenue contributions from: solutions in enterprise resource planning of more than €5.0 billion, solutions in spend management, human capital management, and SAP Business Technology Platform of more than €2.5 billion each, solutions in Customer Relationship Management of more than €1.0 billion, and SAP HANA Enterprise Cloud of more than €0.5 billion.

For a detailed description of our medium-term prospects, see our Integrated Report 2021.

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Goalsfor Liquidity, Finance, and Investments

We believe that our liquid assets combined with our undrawn credit facilities are sufficient to meet our operating financing needs in the second half of 2022 as well, and, together with expected cash flows from operations, will support debt repayments and our currently planned capital expenditure requirements over the near and medium term.

In the second half-year, we expect a more favorable cash flow development due to lower cash taxes and better profitability. We are therefore reiterating our free cash flow outlook for the year to more than €4.5 billion.

Compared to what we disclosed in our Integrated Report 2021, we did not change our free cash flow expectations.

In addition to the repayment of a €900 million Eurobond in the first quarter of 2022, we intend to repay a US$445 million U.S. private placement in the fourth quarter of 2022.

As at June 30, 2022, scheduled debt repayments of around €3.5 billion until the end of 2023 are pending.

The ratio of net debt as at December 31, 2022, of around €1.6 billion divided by the total of operating profit (IFRS) plus depreciation and amortization is expected at around 0.2.

Our planned investment expenditures for 2022 and 2023, other than from business combinations, consist primarily of the purchase of IT infrastructure (such as data centers) and the construction of new buildings. Primarly driven by higher investment expenditures for IT, we now expect planned investment expenditures of slightly below €1 billion for 2022, compared to the approximately €850 million disclosed in our Integrated Report 2021. In 2023, capital expenditures are expected to return approximately to 2021 levels.

Non-FinancialGoals 2022 and Ambitions for 2025

In addition to our financial goals, we also focus on three non-financial targets: customer loyalty, employee engagement, and carbon emissions.

SAP now expects the Employee Engagement Index to be in a range of 80% to 84% in 2022 (previously: 84% to 86%).

In 2022, SAP continues to expect:

–	A<br> Customer Net Promoter Score of 11 to 15 (2021: 10)
–	Net<br> carbon emissions of 70 kt (2021: 110 kt)
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For a detailed description of our non-financial goals for 2022 and ambitions for 2025, see our IntegratedReport 2021.

Premiseson Which Our Outlook and Prospects Are Based

In preparing our outlook and prospects, we have taken into account all events known to us at the time we prepared this report that could influence SAP’s 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 action. The opportunities remain largely unchanged compared to what we disclosed in our IntegratedReport 2021.

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ConsolidatedHalf-Year Financial Statements – IFRS

Primary Half-Year Financial Statements	23–27
Notes to the Half-Year Financial Statements		28
(IN.1) Basis for Preparation		28
(IN.2) Impact of the War in Ukraine		29
Section A – Customers		30
(A.1) Revenue		30
(A.2) Trade and Other Receivables		31
Section B – Employees		32
(B.1) Employee Headcount		32
(B.2) Employee Benefits Expenses		32
(B.3) Share-Based Payments		33
(B.4) Restructuring		34
Section C – Financial Results		35
(C.1) Results of Segments		35
(C.2) Reconciliation of Segment Measures to Income Statement		37
(C.3) Financial Income, Net		38
(C.4) Income Taxes		38
Section D – Invested Capital		39
(D.1) Business Combinations and Divestitures		39
(D.2) Goodwill		40
(D.3) Property, Plant, and Equipment		41
Section E – Capital Structure, Financing, and Liquidity		42
(E.1) Total Equity		42
(E.2) Liquidity		43
Section F – Management of Financial Risk Factors		44
(F.1) Financial Risk Factors, Financial Risk Management, and Fair Value Disclosures on Financial Instruments		44
Section G – Other Disclosures		45
(G.1) Litigation, Claims, and Legal Contingencies		45
(G.2) Related Party Transactions		46
(G.3) Events After the Reporting Period		46
(G.4) Scope of Consolidation		46

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Consolidated Income Statement of SAP Group (IFRS) – Half Year

millions, unless otherwise stated	Q1–Q2<br><br> <br>2022	Q1–Q2<br><br> <br>2021	∆<br> in %
Cloud	5,876	4,421	33
Software<br> licenses	743	1,133	–34
Software<br> support	5,900	5,624	5
Software<br> licenses and support	6,643	6,757	–2
Cloud<br> and software	12,519	11,178	12
Services	2,075	1,839	13
Total<br> revenue	14,594	13,017	12
Cost<br> of cloud	–1,822	–1,444	26
Cost<br> of software licenses and support	–841	–939	–10
Cost<br> of cloud and software	–2,663	–2,383	12
Cost<br> of services	–1,635	–1,447	13
Total<br> cost of revenue	–4,298	–3,830	12
Gross<br> profit	10,296	9,187	12
Research<br> and development	–2,970	–2,478	20
Sales<br> and marketing	–4,330	–3,491	24
General<br> and administration	–1,034	–1,098	–6
Restructuring	–119	–164	–27
Other<br> operating income/expense, net	–118	–12	>100
Total<br> operating expenses	–12,868	–11,073	16
Operating<br> profit (loss)	1,726	1,944	–11
Other<br> non-operating income/expense, net	–69	29	<-100
Finance<br> income	521	1,549	–66
Finance<br> costs	–695	–381	82
Financial<br> income, net	–174	1,168	<-100
Profit<br> (loss) before tax	1,483	3,141	–53
Income<br> tax expense	–648	–622	4
Profit<br> (loss) after tax	835	2,519	–67
Attributable<br> to owners of parent	1,074	2,396	–55
Attributable<br> to non-controlling interests	–239	123	<-100
Earnings<br> per share, basic (in )1	0.92	2.03	–55
Earnings<br> per share, diluted (in )1	0.91	2.03	–55

All values are in Euros.

^1^ For the six months ended June 30, 2022 and 2021, the weighted average number of shares was 1,174 million (diluted: 1,174 million) and 1,180 million (diluted: 1,180 million), respectively (treasury stock excluded).

Due to rounding, numbers may not add up precisely.

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Consolidated Statements of Comprehensive Income of SAP Group (IFRS) – Half Year

€<br> millions	Q1–Q2<br> 2022	Q1–Q2<br> 2021
Profit<br> after tax	835	2,519
Items<br> that will not be reclassified to profit or loss
Remeasurements<br> on defined benefit pension plans, before tax	1	17
Income<br> taxes relating to remeasurements on defined benefit pension plans	–2	–3
Remeasurements<br> on defined benefit pension plans, net of tax	–2	13
Other<br> comprehensive income for items that will not be reclassified to profit or loss, net of tax	–2	13
Items<br> that will be reclassified subsequently to profit or loss
Gains<br> (losses) on exchange differences on translation, before tax	3,513	1,043
Reclassification<br> adjustments on exchange differences on translation, before tax	0	17
Exchange<br> differences, before tax	3,513	1,061
Income<br> taxes relating to exchange differences on translation	–7	–8
Exchange<br> differences, net of tax	3,505	1,053
Gains<br> (losses) on cash flow hedges/cost of hedging, before tax	–11	2
Reclassification<br> adjustments on cash flow hedges/cost of hedging, before tax	46	–6
Cash<br> flow hedges/cost of hedging, before tax	35	–4
Income<br> taxes relating to cash flow hedges/cost of hedging	–9	1
Cash<br> flow hedges/cost of hedging, net of tax	26	–4
Other<br> comprehensive income for items that will be reclassified to profit or loss, net of tax	3,531	1,049
Other<br> comprehensive income, net of tax	3,530	1,063
Total<br> comprehensive income	4,365	3,581
Attributable<br> to owners of parent	4,347	3,496
Attributable<br> to non-controlling interests	18	85
Due<br> to rounding, numbers may not add up precisely.

24/57

Consolidated Statement of Financial Position of SAP Group (IFRS)


millions	Notes	2022	2021
Cash<br> and cash equivalents		7,492	8,898
Other<br> financial assets		987	2,758
Trade<br> and other receivables		8,674	6,352
Other<br> non-financial assets	(A.2)	2,112	1,633
Tax<br> assets		856	403
Total<br> current assets		20,121	20,044
Goodwill	(D.2)	33,913	31,090
Intangible<br> assets		4,295	3,965
Property,<br> plant, and equipment	(D.3)	4,996	4,977
Other<br> financial assets		6,920	6,275
Trade<br> and other receivables		113	147
Other<br> non-financial assets	(A.2)	3,010	2,628
Tax<br> assets		307	263
Deferred<br> tax assets		1,901	1,779
Total<br> non-current assets		55,454	51,125
Total<br> assets		75,575	71,169
millions		2022	2021
Trade<br> and other payables		1,939	1,580
Tax<br> liabilities		317	304
Financial<br> liabilities	(E.2)	8,150	4,528
Other<br> non-financial liabilities		3,458	5,203
Provisions	(B.4)	148	89
Contract<br> liabilities		6,883	4,431
Total<br> current liabilities		20,894	16,136
Trade<br> and other payables		104	122
Tax<br> liabilities		903	827
Financial<br> liabilities	(E.2)	9,515	11,042
Other<br> non-financial liabilities		657	860
Provisions		382	355
Deferred<br> tax liabilities		300	291
Contract<br> liabilities		33	13
Total<br> non-current liabilities		11,894	13,510
Total<br> liabilities		32,788	29,645
Issued<br> capital		1,229	1,229
Share<br> premium		2,547	1,918
Retained<br> earnings		35,109	37,022
Other<br> components of equity		5,031	1,756
Treasury<br> shares		–4,072	–3,072
Equity<br> attributable to owners of parent		39,844	38,852
Non-controlling<br> interests		2,943	2,670
Total<br> equity	(E.1)	42,787	41,523
Total<br> equity and liabilities		75,575	71,169

All values are in Euros.

Due to rounding, numbers may not add up precisely.

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Consolidated Statements of Changes in Equity of SAP Group (IFRS)

€<br> millions	Equity<br> Attributable to Owners of Parent						Non-<br> Controlling<br> Interests	Total<br> Equity
	Issued<br><br><br> Capital	Share<br> <br><br>Premium	Retained<br><br><br> Earnings	Other<br><br><br> Components<br><br> of Equity	Treasury<br><br><br> Shares	Total
12/31/2020	1,229	545	32,026	–1,011	–3,072	29,717	211	29,928
<br> Profit after tax			2,396			2,396	123	2,519
Other<br> comprehensive income			13	1,087		1,100	–38	1,063
Comprehensive<br> income			2,409	1,087	–3,072	3,496	85	3,581
Share-based<br> payments		741				741	143	884
Dividends			–2,182			–2,182	–16	–2,198
Transactions<br> with non-controlling interests			888			888	1,059	1,947
Other<br> changes			–30			–30	9	–20
6/30/2021	1,229	1,287	33,111	76	–3,072	32,630	1,492	34,122
12/31/2021	1,229	1,918	37,022	1,756	–3,072	38,852	2,670	41,523
<br> Profit after tax			1,074			1,074	–239	835
Other<br> comprehensive income			–2	3,275		3,273	257	3,530
Comprehensive<br> income			1,073	3,275		4,347	18	4,365
Share-based<br> payments		629				629	181	810
Dividends			–2,865			–2,865	–18	–2,883
Purchase<br> of treasury shares					–1,000	–1,000		–1,000
Transactions<br> with non-controlling interests			–83			–83	85	1
Other<br> changes			–37			–37	7	–29
<br> 6/30/2022	1,229	2,547	35,109	5,031	–4,072	39,844	2,943	42,787
Due<br> to rounding, numbers may not add up precisely.

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Consolidated Statement of Cash Flows of SAP Group (IFRS)

€<br> millions	Q1–Q2<br> 2022	Q1–Q2<br> 2021
<br> Profit (loss) after tax	835	2,519
Adjustments<br> to reconcile profit (loss) after tax to net cash flows from operating activities:
Depreciation<br> and amortization	933	871
Share-based<br> payment expense	1,184	1,256
<br> Income tax expense	648	622
<br> Financial income, net	174	–1,168
Decrease/increase<br> in allowances on trade receivables	108	–11
Other<br> adjustments for non-cash items	7	110
Decrease/increase<br> in trade and other receivables	865	1,074
Decrease/increase<br> in other assets	–621	–229
Increase/decrease<br> in trade payables, provisions, and other liabilities	–1,312	–1,024
Increase/decrease<br> in contract liabilities	2,133	1,888
Share-based<br> payments	–918	–779
Interest<br> paid	–140	–125
Interest<br> received	45	21
Income<br> taxes paid, net of refunds	–1,192	–1,254
Net<br> cash flows from operating activities	2,750	3,771
Business<br> combinations, net of cash and cash equivalents acquired	–627	–995
Purchase<br> of intangible assets or property, plant, and equipment	–456	–344
Proceeds<br> from sales of intangible assets or property, plant, and equipment	51	40
Purchase<br> of equity or debt instruments of other entities	–2,256	–754
Proceeds<br> from sales of equity or debt instruments of other entities	4,005	1,325
Cash<br> flows from advances (supply chain financing)^1^	–1,432	0
Net<br> cash flows from investing activities	–715	–728
Dividends<br> paid	–2,865	–2,182
Dividends<br> paid on non-controlling interests	–3	–16
Purchase<br> of treasury shares	–1,000	0
Proceeds<br> from changes in ownership interests in subsidiaries that do not result in the loss of control	21	1,847
Payments<br> for taxes related to net share settlement of equity awards	–224	0
Proceeds<br> from borrowings	38	1,600
Repayments<br> of borrowings	–944	–1,802
Payments<br> of lease liabilities	–215	–176
Cash<br> flows with funders (supply chain financing)^1^	1,409	0
Net<br> cash flows from financing activities	–3,782	–729
Effect<br> of foreign currency rates on cash and cash equivalents	341	139
Net<br> decrease/increase in cash and cash equivalents	–1,406	2,453
<br> Cash and cash equivalents at the beginning of the period	8,898	5,311
<br> Cash and cash equivalents at the end of the period	7,492	7,764
^1^ For<br> more information, see Note (D.1).
Due<br> to rounding, numbers may not add up precisely.

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Notesto 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 Half-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, 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 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 view.

Our business activities are influenced by certain seasonal effects. Historically, our overall revenue tends to be highest in the fourth quarter. Interim results are therefore not necessarily indicative of results for a full year.

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 with SAP’s audited Consolidated IFRS Financial Statements for the Year Ended December 31, 2021, included in our Integrated Report 2021 and our Annual Report on Form 20-F for 2021.

Due to rounding, numbers presented throughout these Consolidated Half-Year Financial Statements may not add up precisely to 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 , respectively.

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Accounting Policies, Management Judgments, and Sources of Estimation Uncertainty

HowWe 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 with 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 Statements for 2021.

New Accounting Standards Not Yet Adopted

The IASB has issued amendments to standards such IAS 1 (Classification of Liabilities as Current or Non-current), that are relevant for SAP but not yet effective. We are currently in the process of finalizing the assessment of the impact on SAP, but do not expect material effects on our financial position or results of operations.

(IN.2)Impact of the War in Ukraine

In the first half of 2022, SAP’s business was negatively impacted by the war in Ukraine and SAP’s decision to wind down its business operations in Russia and Belarus. For more information about the impacts of the war in Ukraine and SAP’s exit from Russia and Belarus, see Note (A.2) concerning Trade and Other Receivables, *Note (B.4)*concerning Restructuring, and Note (D.2) concerning Goodwill.

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Section A – Customers

This section discusses disclosures related to contracts with our customers. These consist of revenue breakdowns and information about our trade receivables. For more information, see our Consolidated Financial Statements for 2021, SectionA – Customers.

(A.1)Revenue

Geographic Information

The amounts for revenue by region in the following tables are based on the location of customers.

Cloud Revenue by Region

€<br> millions	Q1–Q2 2022	Q1–Q2<br> 2021
EMEA	2,036	1,547
Americas	3,094	2,291
APJ	746	582
<br> SAP Group	5,876	4,421

Cloud and Software Revenue by Region

€<br> millions	Q1–Q2<br> 2022	Q1–Q2<br> 2021
EMEA	5,355	5,050
Americas	5,265	4,336
APJ	1,899	1,792
<br> SAP Group	12,519	11,178

Total Revenue by Region

€<br> millions	Q1–Q2<br> 2022	Q1–Q2<br> 2021
Germany	2,129	1,957
Rest<br> of EMEA	4,110	3,898
EMEA	6,239	5,855
United<br> States	5,028	4,166
Rest<br> of Americas	1,161	974
Americas	6,189	5,140
Japan	613	628
Rest<br> of APJ	1,553	1,394
APJ	2,166	2,022
<br> SAP Group	14,594	13,017

For information about the breakdown of revenue by segment and segment revenue by region, see Note (C.1). For more information about our revenue accounting policies, see our Consolidated Financial Statements for 2021, Note (A.1).

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(A.2)Trade and Other Receivables

€<br> millions	6/30/2022
	Current	Non-Current	Total
Trade<br> receivables, net	5,287	1	5,288
Other<br> receivables	3,387	112	3,499
<br> Total	8,674	113	8,787
€<br> millions	12/31/2021
---	---	---	---
	Current	Non-Current	Total
Trade<br> receivables, net	5,887	1	5,888
Other<br> receivables	465	146	611
<br> Total	6,352	147	6,499

The impact of the war in Ukraine has significantly increased the credit risk on our trade receivables in Russia and Belarus and resulted in an additional expected credit loss of €101 million.

The significant increase in other receivables is due to the Taulia acquisition and the consolidation of its supply chain financing related assets. For more information about the Taulia acquisition and the respective accounting, see Note (D.1).

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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 2021, as well as SAP’s Compensation Report. For more information, see our Consolidated Financial Statements for 2021, Section B – Employees.

(B.1)Employee Headcount

On June 30, 2022, the breakdown of our full-time equivalent employee numbers by function and by region was as shown in the table below.

Number of Employees (in Full-Time Equivalents)

Full-time<br> equivalents	6/30/2022				6/30/2021
	EMEA	Americas	APJ	Total	EMEA	Americas	APJ	Total
Cloud<br> and software	5,978	4,570	5,157	15,705	5,859	4,456	5,029	15,345
Services	8,304	5,516	5,864	19,684	8,264	5,627	6,102	19,993
Research<br> and development	15,920	6,348	10,677	32,945	14,489	6,162	10,021	30,672
Sales and<br> marketing	11,983	12,394	5,691	30,068	10,607	10,765	4,991	26,363
General and<br> administration	3,423	2,271	1,252	6,945	3,452	2,184	1,187	6,823
Infrastructure	2,780	1,405	877	5,061	2,588	1,299	792	4,679
SAP<br> Group (6/30)	48,388	32,504	29,518	110,409	45,261	30,493	28,123	103,876
Thereof<br> acquisitions^1^	173	214	8	395	377	43	26	446
SAP<br> Group (six months' end average)	47,842	32,354	29,456	109,652	44,741	30,332	28,021	103,094
^1^Acquisitions closed between January 1 and June 30 of the respective year

(B.2)Employee Benefits Expenses

€<br> millions	Q1–Q2<br><br> <br>2022	Q1–Q2<br><br> <br>2021
Salaries	5,925	5,150
Social<br> security expenses	968	805
Share-based<br> payment expenses	1,184	1,256
Pension<br> expenses	252	231
Employee-related<br> restructuring expenses	61	27
Termination<br> benefits	23	38
Employee<br> benefits expenses	8,412	7,505

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(B.3)Share-Based Payments

The allocations of expenses for share-based payments to the various expense items are as follows:

Share-Based Payments

€<br> millions	Q1–Q2<br> 2022	Q1–Q2<br> 2021
Cost<br> of cloud	31	28
Cost<br> of software	30	34
Cost<br> of services	122	129
Research<br> and development	279	248
Sales<br> and marketing	315	301
General<br> and administration	408	516
Share-based<br> payments	1,184	1,256

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 2021, Note (B.3)**.

Restricted Stock Unit Plan Including Move SAP Plan and Grow SAP Plan (RSU Plan)

Starting in 2022, most of the granted share units under the Move SAP plan will start vesting after a waiting period of six months and ratably thereafter for ten quarters. Under our previous policy, we serviced obligations arising from the plan with cash payments, but we have since decided to settle future share units predominantly in shares.

In the first half of 2022, we granted 16.8 million (first half of 2021: 11.2 million) share units. This includes 14.3 million (first half of 2021: 0) 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. For more information about our share buyback completed in the first half of 2022 to avoid dilution from the equity-settlement, see Note (E.1). Of the share units we intend to settle in cash, 1.1 million share units were granted in June 2022 under the Grow SAP plan (0.9 million in June 2021).

Obligations from outstanding share units granted before 2022 under the Move SAP plan will continue to be settled in cash and the settlement methods of SAP’s other plans remain unchanged.

Own SAP Plan (Own)

Under the Own SAP plan, employees can purchase, on a monthly basis, SAP shares without any required holding period. As part of SAP’s 50th anniversary celebration, SAP's contribution was doubled from 40% to 80% from January to March 2022. The number of shares purchased by our employees under this plan was 4.6 million in the first half of 2022 (first half of 2021: 2.9 million).

Qualtrics

In the first half of 2022, 19.3 million equity-settled Qualtrics RSU awards were granted (first half of 2021: 67.1 million) to encourage and enable Qualtrics executives and employees to acquire an ownership interest in Qualtrics.

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(B.4)Restructuring

€<br> millions	Q1–Q2<br> 2022	Q1–Q2<br> 2021
Employee-related<br><br> <br>restructuring<br> expenses	–61	–27
Onerous<br> contract-related<br><br> <br>restructuring<br> expenses and restructuring related impairment losses	–58	–137
Restructuring expenses	–119	–164

Most of the restructuring expenses presented in the first half of 2022 relate to the announced wind-down of business in Russia and Belarus. Restructuring costs mainly comprise severance payments to employees, impairments of right-of-use assets for office buildings, impairments of data center equipment, and write-offs of capitalized sales commissions. For more information about the financial impact of the war in Ukraine, see Note (IN.2).

For an estimate of the expected total restructuring costs in 2022, see the Financial Targets and Prospectssection in SAP’s Consolidated Half-Year Management Report.

If not presented separately, these restructuring expenses would break down in our income statements as follows:

Restructuring Expenses by Functional Area

€<br> millions	Q1–Q2<br> 2022	Q1–Q2<br> 2021
Cost<br> of cloud	12	–130
Cost<br> of software licenses and support	–4	–4
Cost<br> of services	–61	–15
Research<br> and development	–7	–11
Sales<br> and marketing	–57	–3
General<br> and administration	–3	–1
<br> Restructuring expenses	–119	–164

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Section C – Financial Results

This section provides insight into the financial results of SAP's 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 2021, Section C – Financial Results.

(C.1)Results of Segments

General Information

SAP has five operating segments that are regularly reviewed by our Executive Board, which is responsible for assessing the performance of our Company and for making resource allocation decisions as our Chief Operating Decision Maker (CODM). The operating segments are largely organized and managed separately according to their product and service offerings, notably whether the products and services relate to our experience management (Qualtrics) or working capital management solutions (Taulia), business process management offerings (SAP Signavio), or our customer experience portfolio of Emarsys, or cover other areas of our business including support and services activities (Applications, Technology & Services).

For more information about our segments, see the Notes to the Consolidated Financial Statements for 2021, Note (C.1).

The following changes to the composition of our operating segments occurred in the first half of 2022:

–	The<br> acquisition of Taulia led to a new operating segment that is non-reportable due to its size.
–	The<br> non-reportable Business Process Intelligence segment was renamed to SAP Signavio without<br> changes in the composition of this segment.
---	---
–	The<br> former Services segment was dissolved and integrated into the renamed Applications, Technology<br> & Services segment.
---	---
–	Certain<br> marketing costs that we primarily incur for product and solution-specific activities in the<br> Applications, Technology & Services segment are now presented in the results of this<br> segment and are no longer allocated to SAP’s corporate functions.
---	---

The segment information for prior periods has been restated to conform with these changes to our segment composition.

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Applications, Technology & Services

€ millions,<br> unless otherwise stated<br><br> <br>(non-IFRS)	Q1–Q2 2022		Q1–Q2<br> 2021
	Actual<br><br> <br>Currency	Constant<br><br> <br>Currency	Actual<br><br> <br>Currency
Cloud	5,199	4,891	4,015
Software<br> licenses	740	705	1,132
Software<br> support	5,899	5,648	5,623
Software<br> licenses and support	6,640	6,353	6,755
Cloud<br> and software	11,838	11,245	10,769
Services	1,966	1,868	1,749
Total<br> segment revenue	13,804	13,113	12,519
Cost<br> of cloud	–1,629	–1,512	–1,287
Cost<br> of software licenses and support	–810	–772	–832
Cost<br> of cloud and software	–2,438	–2,285	–2,119
Cost<br> of services	–1,375	–1,316	–1,214
Total<br> cost of revenue	–3,814	–3,600	–3,333
Segment<br> gross profit	9,991	9,512	9,186
Other<br> segment expenses	–5,841	–5,526	–4,663
Segment<br> profit (loss)	4,149	3,986	4,523

Qualtrics

€ millions,<br> unless otherwise stated<br><br> <br>(non-IFRS)	Q1–Q2 2022		Q1–Q2<br> 2021
	Actual<br><br> <br>Currency	Constant<br><br> <br>Currency	Actual<br><br> <br>Currency
Cloud	548	500	333
Cloud<br> and software	548	500	333
Services	102	92	80
Total<br> segment revenue	650	592	413
Cost<br> of cloud	–60	–55	–26
Cost<br> of cloud and software	–60	–55	–26
Cost<br> of services	–82	–76	–57
Total<br> cost of revenue	–142	–130	–83
Segment<br> gross profit	508	461	330
Other<br> segment expenses	–481	–431	–304
Segment<br> profit (loss)	26	30	26

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SegmentRevenue by Region

€<br> millions	EMEA			Americas			APJ			Total Segment Revenue
	Q1–Q2 2022		Q1–Q2<br> 2021	Q1–Q2 2022		Q1–Q2<br> 2021	Q1–Q2 2022		Q1–Q2<br> 2021	Q1–Q2 2022		Q1–Q2<br> 2021
	Actual<br> Currency	Constant<br> Currency	Actual<br> Currency	Actual<br> Currency	Constant<br> Currency	Actual<br> Currency	Actual<br> Currency	Constant<br> Currency	Actual<br> Currency	Actual<br> Currency	Constant<br> Currency	Actual<br> Currency
Applications,<br> Technology & Services	6,057	5,948	5,741	5,653	5,132	4,814	2,094	2,032	1,964	13,804	13,113	12,519
Qualtrics	100	92	65	496	450	313	54	49	35	650	592	413
Total<br> reportable segments	6,157	6,040	5,805	6,149	5,582	5,127	2,148	2,081	1,999	14,454	13,704	12,931

For a breakdown of revenue by region for the SAP Group, see Note (A.1).

(C.2)Reconciliation of Segment Measures to Income Statement

€<br> millions	Q1–Q2 2022		Q1–Q2<br> 2021
	Actual<br><br> <br>Currency	Constant<br><br> <br>Currency	Actual<br><br> <br>Currency
Applications,<br> Technology & Services	13,804	13,113	12,519
Qualtrics	650	592	413
Total<br> segment revenue for reportable segments	14,454	13,704	12,931
Other<br> revenue	140	135	85
Adjustment<br> for currency impact	0	755	0
<br> Total revenue	14,594	14,594	13,017
Applications,<br> Technology & Services	4,149	3,986	4,523
Qualtrics	26	30	26
Total<br> segment profit for reportable segments	4,176	4,017	4,549
Other<br> revenue	140	135	85
Other<br> expenses	–958	–921	–974
Adjustment<br> for currency impact	0	127	0
Adjustment<br> for
Acquisition-related<br> charges	–328	–328	–296
Share-based<br> payment expenses	–1,184	–1,184	–1,256
**** Restructuring	–119	–119	–164
<br> Operating profit	1,726	1,726	1,944
**** Other non-operating income/expense, net	–69	–69	29
**** Financial income, net	–174	–174	1,168
<br> Profit before tax	1,483	1,483	3,141

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(C.3)Financial Income, Net

In the first half of 2022, finance income mainly consisted of gains from disposals and fair value adjustments of equity securities totaling €463 million (first half of 2021: €1,515 million) of Sapphire Ventures investments.

In the first half of 2022, finance costs were primarily impacted by losses from disposals and fair value adjustments of equity securities amounting to €543 million (first half of 2021: €228 million) and were mainly due to Sapphire Ventures investments.

For more information about our financial income, net, see the Notes to the Consolidated Financial Statements for 2021, 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 in respect of certain secured capital investments, while the few foreign disputes are 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 have 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 €1,562 million (2021: €1,283 million) in total (including related interest expenses and penalties of €844 million (2021: €677 million)). The contingent liabilities increased in 2022 mainly due to foreign currency exchange rate fluctuations.

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Section D – Invested Capital

This section highlights the non-current assets including investments that form the basis of our operating activities. Additions in invested capital include separate asset acquisitions or business combinations. For more information, see our Consolidated Financial Statements for 2021, Section D – Invested Capital.

(D.1)Business Combinations and Divestitures

Taulia Acquisition

The acquisition is expected to further expand SAP’s business network capabilities and strengthen SAP’s solutions for the CFO office.

Consideration transferred amounted to €0.7 billion.

TauliaAcquisition: Recognized Assets and Liabilities

billions
Intangible<br> assets
Supply<br> chain financing related receivables
Other<br> identifiable assets
Total<br> identifiable assets
Supply<br> chain financing related liabilities
Other<br> identifiable liabilities
Total<br> identifiable liabilities
Total<br> identifiable net assets
Goodwill
Total<br> consideration transferred

All values are in Euros.

The initial accounting for the Taulia business combination is incomplete because we are still obtaining the information necessary to identify and measure items such as tax-related assets and liabilities, as well as intangible assets of Taulia. Accordingly, the amounts recognized in our financial statements for these items are regarded provisional as at June 30, 2022. We are also still finalizing our accounting assessment of the supply chain financing transactions offered by Taulia. The supply chain financing related assets and liabilities are included in SAP’s consolidated “Trade and other receivables” as well as current “Financial liabilities” (June 30, 2022: approximately €2.9 billion each). In general, the funds received by Taulia from the banks participating in the financing transactions as investors are classified as “financing cash flow,” and the cash routed through Taulia upon settlement of the receivables subject to supply chain financing on the maturity date are classified as “investing cash flow.”

In general, the goodwill arising from our acquisitions consists largely of the synergies and the know-how and skills of the acquired businesses’ workforces.

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Taulia goodwill was attributed to expected synergies from the acquisition, particularly in the following areas:

–	Cross-selling<br> to existing SAP customers across all regions, using SAP’s sales organization
–	Further<br> expanding SAP’s business network capabilities and strengthening SAP’s solutions<br> for the CFO office
---	---
–	Creating<br> new offerings by combining Taulia products and SAP products
---	---
–	Improving<br> profitability in Taulia sales and operations
---	---

The allocation of the goodwill resulting from the Taulia acquisition to our operating segments depends on how our operating segments actually benefit from the synergies of the Taulia business combination. For more information, see Note (D.2).

Impact of the Business Combination on Our Financial Statements

The amounts of revenue and profit or loss of the Taulia business acquired in 2022 since the acquisition date were included in our Consolidated Income Statement for the first half of 2022 as follows:

Taulia Acquisition: Impact on SAP’s Financials

€<br> millions	Q1–Q2<br> 2022<br><br> <br>as<br> Reported	Contribution<br> of Taulia
<br> Revenue	14,594	22
<br> Profit after tax	835	-16

Had Taulia been consolidated as at January 1, 2022, our revenue and profit after tax for the first half of 2022 would not have been materially different.

(D.2)Goodwill

For goodwill, we have – through a qualitative and quantitative analysis – been continuously monitoring the existence of triggering events that would require an impairment test in the first half of 2022. The review of internal and external factors led us to conclude that no triggering events occurred since our annual goodwill impairment test in 2021. No impairment tests were performed in the first half of 2022.

In addition, we considered the potential impact of the war in Ukraine on our expected future performance. Based on our analysis, we do not expect major impacts on the future performance of the goodwill-carrying cash-generating units. The negative revenue impact and additional expenses due to the exit of operations in Russia and Belarus mainly affects our Application, Technology & Services segment. We believe that no reasonably possible effect of the exit of operations in Russia and Belarus on revenue and expenses would cause the carrying amount of our Application, Technology & Services segment to exceed the recoverable amount. For more information about the impact of the war in Ukraine, see Note (IN.2).

Due to the integration of the Services segment into the former Applications, Technology & Support segment at the beginning of 2022 (renamed to Applications, Technology & Services segment), the goodwill in the Services segment was moved to this segment. Given the close proximity to the 2021 annual goodwill impairment test, no formal impairment test was performed on the reallocation date of the Services segment. For more information, see Note (C.1).

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The allocation of the goodwill resulting from the Clarabridge acquisition that closed in the fourth quarter of 2021 and the Taulia acquisition that closed in March 2022 to our operating segments depends on how our operating segments actually benefit from the synergies of the Clarabridge and Taulia business combinations. We have not yet completed the identification of those benefits.

(D.3)Property, Plant, and Equipment

Property, Plant, and Equipment (Summary)

€<br> millions	6/30/2022	12/31/2021
Property,<br> plant, and equipment excluding leases	3,205	3,136
Right-of-use<br> assets	1,791	1,841
<br> Total	4,996	4,977
Additions	1/1/2022<br> to 6/30/2022	1/1/2021<br> to 12/31/2021
Property,<br> plant, and equipment excluding leases	359	731
Right-of-use<br> assets	143	336
Total	502	1,067

For more information about the impairment of assets in Russia, see Note (B.4).

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Section E – Capital Structure, Financing and Liquidity

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 2021, Section E – Capital Structure, Financing, and Liquidity.

(E.1)Total Equity

Numberof Shares

millions	Issued<br> Capital	Treasury<br> Shares
12/31/2020	1,228.5	–48.9
6/30/2021	1,228.5	–48.9
12/31/2021	1,228.5	–48.9
Purchase	0	–10.0
6/30/2022	1,228.5	–58.9

We bought back 10,004,763 shares at an average price of €99.95 between February 1, 2022, and April 29, 2022, to support the transition of SAP’s share-based compensation programs to equity settlement. The 2022 share buyback program has thus been completed.

OtherComponents of Equity

€<br> millions	Exchange<br> Differences	Cash<br> Flow Hedges	Total
12/31/2020	–1,015	4	–1,011
Other<br> comprehensive income	1,091	–4	1,087
6/30/2021	76	0	76
12/31/2021	1,779	–22	1,756
Other<br> comprehensive income	3,249	26	3,275
6/30/2022	5,028	4	5,031

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(E.2) Liquidity

€<br> millions	6/30/2022
	Nominal<br> Volume		Carrying<br> Amount
	Current	Non-Current	Current	Non-<br><br>Current	Total
Bonds	1,600	7,389	1,599	6,788	8,387
Private<br> placement transactions	428	407	429	420	849
Commercial<br> Paper	930	0	930	0	930
Bank<br> loans	1,528	0	1,528	0	1,528
Financial<br> debt	4,485	7,796	4,486	7,208	11,694
Lease<br> liabilities	NA	NA	388	1,750	2,138
Other<br> financial liabilities	NA	NA	3,276	557	3,833
Financial<br>liabilities			8,150	9,515	17,665
Financial<br> debt as % of financial liabilities			55	76	66

The significant increase in other financial liabilities is due to the Taulia acquisition and the consolidation of its supply chain financing related liabilities. For more information about the Taulia acquisition and the accounting, see Note (D.1).

€<br> millions	12/31/2021
	Nominal<br> Volume		Carrying<br> Amount
	Current	Non-Current	Current	Non-Current	Total
Bonds	900	8,965	900	8,851	9,751
Private<br> placement transactions	393	373	396	393	790
Commercial<br> Paper	930	0	931	0	931
Bank<br> loans	1,533	0	1,533	0	1,533
Financial<br> debt	3,756	9,338	3,760	9,245	13,005
Lease<br> liabilities	NA	NA	407	1,736	2,143
Other<br> financial liabilities	NA	NA	361	61	422
<br> Financial liabilities			4,528	11,042	15,570
Financial<br> debt as % of financial liabilities			83	84	84

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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 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 2021, Section F – Risk Management and Fair Value Disclosures.

(F.1)Financial Risk Factors, Financial 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 value hierarchy of IFRS 13 are presented in Notes (F.1) and (F.2) in the Consolidated Financial Statements for 2021.

We do not disclose the fair value of our financial instruments as at June 30, 2022, for the following reasons:

–	For<br> a large number of our financial instruments, their carrying amounts are a reasonable approximation<br> of their fair values, and
–	For<br> those financial instruments where the carrying amount differs from fair value, there was<br> no material change in the relation between carrying amount and fair value since December 31, 2021.
---	---

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Section G – Other Disclosures

This section provides additional disclosures on miscellaneous topics, including information pertaining to other litigation, claims, and legal contingencies, and related party transactions. For more information, see our Consolidated Financial Statements for 2021, SectionG – Other Disclosures.

(G.1)Other Litigation, Claims, and Legal Contingencies

We are subject to a variety of claims 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 pending as at June 30, 2022, will neither individually nor in the aggregate have a material adverse effect on our business, financial position, profit, or cash flows. Consequently, the provisions recorded for these claims and lawsuits as at June 30, 2022, are neither individually nor in the aggregate material to SAP.

Among the claims and lawsuits are the following classes (for more information about these classes, see the Notes to the Consolidated Financial Statements for 2021, Note (G.3)):

Intellectual Property-Related Litigation and Claims

For individual cases of intellectual property-related litigation and claims disclosed in our Integrated Report 2021, there were no significant developments in the first half of 2022.

The provisions recorded for intellectual property-related litigation and claims continue to be not material. There are also no material contingent liabilities from intellectual property-related litigation and claims for which no provision has been recognized.

Tax-Related Litigation

There have been no 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 2021, Note (G.3).

For more information about income tax-related litigation, see Note (C.4).

Anti-Bribery Matters

SAP received communications alleging conduct that may violate anti-bribery laws in the United States (including the U.S. Foreign Corrupt Practices Act (FCPA)) and other countries. Most of the investigations are ongoing and neither the outcome of the investigations nor the date when substantiated findings will be available is predictable at this point in time. Although there could be an unfavorable outcome in one or more of the ongoing investigations, it is currently impossible to make an informed judgment about any possible financial impact.

As a consequence, as at June 30, 2022, no provisions have been recognized for potential anti-bribery law violations in our Consolidated Half-Year Financial Statements. It is currently also not practicable to estimate the financial effect of any contingent liabilities that may result from these potential violations.

For more information, see the Notes to the Consolidated Financial Statements for 2021, Note (G.3).

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(G.2)Related Party Transactions

Certain Executive Board and Supervisory Board members 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 2021, Note (G.4)). We have relationships with certain of these entities in the ordinary course of business.

On May 18, 2022, the Annual General Meeting of Shareholders elected Jennifer Xin-Zhe Li to the Supervisory Board, as a successor to Bernard Liautaud who resigned with effect from that date. She has thus become a related party.

During the reporting period, we had no related party transactions that had a material effect on our business, financial position, or results in the reporting period.

For more information about related party transactions, see the Notes to the Consolidated Financial Statements for 2021, Note (G.6).

(G.3)Events After the Reporting Period

In line with its cloud-led strategy, SAP extended an existing contract in early July 2022 and secured additional cloud infrastructure capabilities (worth approximately €1.5 billion) until 2028.

In addition, on July 21, SAP announced another share buyback program of approximately €500 million. Repurchased shares will primarily be used to service awards granted under share-based compensation plans for employees.

Other than that, no events that have occurred since June 30, 2022, have a material impact on the Company’s Consolidated Half-Year Financial Statements.

(G.4)Scope of Consolidation

	Total
12/31/2021	290
Additions	17
Disposals	–10
6/30/2022	297

The additions in the first half of 2022 relate to legal entities added in connection with acquisitions and foundations. The disposals are mainly due to liquidations and mergers of legal entities.

For more information about our business combinations and the effect on our Consolidated Financial Statements, see *Note (D.1)*and our Integrated Report 2021.

Releaseof the Consolidated Half-Year Financial Statements

The Executive Board of SAP SE approved these consolidated half-year financial statements on July 20, 2022, for submission to the Audit and Compliance Committee of the Supervisory Board and for subsequent issuance.

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ResponsibilityStatement

To the best of our knowledge, and in accordance with the applicable reporting principles for half-year financial 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 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 20, 2022

SAP SE

Walldorf, Baden

The Executive Board

Christian Klein	Sabine Bendiek
Luka Mucic	Juergen Mueller
---	---
Scott Russell	Thomas Saueressig
---	---

Julia White

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SupplementaryFinancial Information

CloudPerformance – Six Months ended June 30, 2022

	IFRS		Non-IFRS^1^
€<br> millions, unless otherwise stated	Q1-Q2<br> 2022	∆<br> in %	Q1-Q2<br> 2022	∆<br> in %	∆<br> in %<br><br> <br>constant<br><br><br> currency
Current<br> Cloud Backlog
Total^2^	NA	NA	10,403	34	25
Thereof<br> SAP S/4HANA^2^	NA	NA	2,258	100	87
Cloud<br> Revenue
SaaS^3^	4,644	33	4,644	33	25
PaaS^4^	739	50	739	50	43
IaaS^5^	492	12	492	12	6
Total	5,876	33	5,876	33	25
Thereof<br> SAP S/4HANA	876	81	876	81	71
Thereof<br> Qualtrics	548	65	548	65	50
Cloud<br> Gross Profit
SaaS^3^	3,343	38	3,453	36	27
PaaS^4^	583	46	583	46	41
IaaS^5^	129	–13	134	–12	–9
Total	4,054	36	4,170	35	27
Thereof<br> Qualtrics	418	60	489	59	45
Cloud<br> Gross Margin (in %)
SaaS^3^ (in<br> %)	72.0	2.3<br> pp	74.4	1.8<br> pp	1.6<br> pp
PaaS^4^ (in<br> %)	78.8	–1.9<br> pp	78.8	–2.0<br> pp	–0.9<br> pp
IaaS^5^ (in<br> %)	26.2	–7.6<br> pp	27.3	–7.7<br> pp	–5.0<br> pp
Total	69.0	1.7<br> pp	71.0	1.2<br> pp	1.4<br> pp
Thereof<br> Qualtrics	76.3	–2.1pp	89.1	–3.2<br> pp	–3.3<br> pp

^1^ For a breakdown of the individual adjustments, see table „Non-IFRS Adjustments by Functional Areas” in this Quarterly Statement.

^2^ As this is an order entry metric, there is no matching IFRS equivalent.

^3^ Software as a service

^4^ Platform as a service

^5^ Infrastructure as a service

Due to rounding, numbers may not add up precisely

Financialand Non-Financial Key Facts (IFRS and Non-IFRS)

€<br> millions, unless otherwise stated	Q1<br><br> <br>2021	Q2<br><br> <br>2021	Q3<br><br> <br>2021	Q4<br><br> <br>2021	TY<br><br> <br>2021	Q1<br><br> <br>2022	Q2<br><br> <br>2022
Revenues
Cloud	2,145	2,276	2,386	2,611	9,418	2,820	3,056
%<br> change – yoy	7	11	20	28	17	31	34
%<br> change constant currency – yoy	13	17	20	24	19	25	24
SAP<br> S/4HANA Cloud	227	257	276	329	1,090	404	472
%<br> change – yoy	36	33	46	65	46	78	84
%<br> change constant currency – yoy	43	39	46	61	47	71	72
Software<br> licenses	483	650	657	1,458	3,248	317	426
%<br> change – yoy	7	–16	–8	–14	–11	–34	–34
%<br> change constant currency – yoy	11	–13	–8	–17	–11	–36	–38
Software<br> support	2,801	2,823	2,867	2,920	11,412	2,923	2,977
%<br> change – yoy	–5	–2	1	3	–1	4	5
%<br> change constant currency – yoy	0	1	1	1	1	1	0
Software<br> licenses and support	3,283	3,474	3,524	4,379	14,660	3,240	3,403
%<br> change – yoy	–3	–5	–1	–4	–3	–1	–2
%<br> change constant currency – yoy	1	–2	–1	–6	–2	–4	–7
Cloud<br> and software	5,428	5,750	5,910	6,990	24,078	6,060	6,459
%<br> change – yoy	1	1	7	6	4	12	12
%<br> change constant currency – yoy	6	5	6	3	5	7	5
Total<br> revenue	6,348	6,669	6,845	7,981	27,842	7,077	7,517
%<br> change – yoy	–3	–1	5	6	2	11	13
%<br> change constant currency – yoy	2	3	5	3	3	7	5
Share<br> of more predictable revenue (in %)	78	76	77	69	75	81	80
Profits
Operating<br> profit (loss) (IFRS)	960	984	1,249	1,463	4,656	1,053	673
Operating<br> profit (loss) (non-IFRS)	1,738	1,922	2,102	2,468	8,230	1,677	1,680
%<br> change	17	–2	2	–11	–1	–4	–13
%<br> change constant currency	24	3	2	–12	1	–7	–16
Profit<br> (loss) after tax (IFRS)	1,070	1,449	1,418	1,440	5,376	632	203
Profit<br> (loss) after tax (non-IFRS)	1,720	2,214	2,129	2,274	8,337	1,166	1,093
%<br> change	70	59	1	12	28	–32	–51
Margins
Cloud<br> gross margin (IFRS, in %)	67.2	67.5	67.0	66.6	67.0	68.2	69.8
Cloud<br> gross margin (non-IFRS, in %)	69.5	70.0	69.4	69.0	69.5	70.0	71.9
Software<br> license and support gross margin (IFRS, in %)	85.7	86.5	87.1	87.9	86.9	87.0	87.7
Software<br> license and support gross margin (non-IFRS, in %)	86.3	87.3	87.8	88.5	87.6	87.5	88.5
Cloud<br> and software gross margin (IFRS, in %)	78.4	79.0	79.0	79.9	79.1	78.2	79.2
Cloud<br> and software gross margin (non-IFRS, in %)	79.7	80.5	80.4	81.2	80.5	79.4	80.6
Gross<br> margin (IFRS, in %)	70.3	70.8	71.4	73.0	71.5	70.3	70.7
Gross<br> margin (non-IFRS, in %)	72.3	73.4	73.6	75.1	73.7	72.0	73.1
Operating<br> margin (IFRS, in %)	15.1	14.8	18.2	18.3	16.7	14.9	8.9
Operating<br> margin (non-IFRS, in %)	27.4	28.8	30.7	30.9	29.6	23.7	22.4
ATS<br> segment – Cloud gross margin (in %)	67.7	68.2	67.6	66.8	67.6	67.8	69.5
ATS<br> segment – Segment gross margin (in %)	72.8	73.9	74.4	74.8	74.0	71.8	72.9
ATS<br> segment – Segment margin in %	35.4	36.8	38.2	36.9	36.8	30.7	29.5
Qualtrics<br> segment – Cloud gross margin (in %)	92.2	92.4	91.6	90.2	91.5	89.6	88.6
Qualtrics<br> segment – Segment gross margin (in %)	79.5	80.3	80.7	78.1	79.6	78.9	77.5
Qualtrics<br> segment – Segment margin (in %)	6.3	6.3	6.0	1.6	4.8	3.1	5.1

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€<br> millions, unless otherwise stated	Q1<br><br> <br>2021	Q2<br><br> <br>2021	Q3<br><br> <br>2021	Q4<br><br> <br>2021	TY<br><br> <br>2021	Q1<br><br> <br>2022	Q2<br><br> <br>2022
Key<br> Profit Ratios
Effective<br> tax rate (IFRS, in %)	20.0	19.7	18.9	26.4	21.5	33.1	62.2
Effective<br> tax rate (non-IFRS, in %)	18.7	19.2	18.2	23.2	20.0	25.7	29.3
Earnings<br> per share, basic (IFRS, in €)	0.88	1.15	1.19	1.23	4.46	0.63	0.29
Earnings<br> per share, basic (non-IFRS, in €)	1.40	1.75	1.74	1.85	6.73	1.00	0.96
Order<br> Entry and current cloud backlog
Current<br> cloud backlog	7,628	7,766	8,171	9,447	9,447	9,731	10,403
%<br> change – yoy	15	17	24	32	32	28	34
%<br> change constant currency – yoy	19	20	22	26	26	23	25
SAP<br> S/4HANA Current cloud backlog	1,036	1,130	1,283	1,707	1,707	1,925	2,258
%<br> change – yoy	39	45	60	84	84	86	100
%<br> change constant currency – yoy	43	48	58	76	76	79	87
Share<br> of cloud orders greater than €5 million based on total cloud order entry volume (in %)^3^	25	29	38	45	41	41	48
Share<br> of cloud orders smaller than €1 million based on total cloud order entry volume (in %)^3^	45	38	35	27	28	31	28
Share<br> of orders greater than €5 million based on total software order entry volume (in %)	23	22	31	24	25	40	33
Share<br> of orders smaller than €1 million based on total software order entry volume (in %)	42	43	41	36	39	33	40
Liquidity<br> and Cash Flow
Net<br> cash flows from operating activities	3,085	686	1,183	1,269	6,223	2,482	268
Capital<br> expenditure	–153	–191	–202	–255	–800	–221	–235
Payments<br> of lease liabilities	–84	–92	–99	–98	–374	–95	–120
Free<br> cash flow	2,848	403	881	916	5,049	2,165	–86
%<br> of total revenue	45	6	13	11	18	31	–1
%<br> of profit after tax (IFRS)	266	28	62	64	94	343	–42
Group<br> liquidity	11,573	8,548	9,375	11,530	11,530	11,283	8,256
Financial<br> debt (–)	–14,230	–13,116	–12,994	–13,094	–13,094	–12,171	–12,282
Net<br> debt (–)	–2,658	–4,568	–3,619	–1,563	–1,563	–888	–4,026
Financial<br> Position
Cash<br> and cash equivalents	10,332	7,764	7,943	8,898	8,898	8,942	7,492
Goodwill	29,328	29,020	29,600	31,090	31,090	32,172	33,913
Total<br> assets	66,477	63,075	65,029	71,169	71,169	76,387	75,575
Contract<br> liabilities (current)	6,568	5,958	4,627	4,431	4,431	7,630	6,883
Equity<br> ratio (total equity in % of total assets)	52	54	57	58	58	56	57
Non-Financials
Number<br> of employees (quarter end)^1^	103,142	103,876	105,015	107,415	107,415	109,798	110,409
Employee<br> retention (in %, rolling 12 months)	95.4	94.8	93.7	92.8	92.8	92.1	91.6
Women<br> in management (in %, quarter end)	27.6	27.9	28.2	28.3	28.3	28.6	28.8
Net<br> carbon emissions^2^(in kilotons)	30	20	25	35	110	20	25

^1^ In full-time equivalents.

^2^ In CO2 equivalents

^3^. To conform to refined calculation logic prior quarters have been adjusted

Due to rounding, numbers may not add up precisely.

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Reconciliationfrom Non-IFRS Numbers to IFRS Numbers – Half Year

€<br> millions, unless otherwise stated	Q1–Q2 2022					Q1–Q2<br> 2021			∆<br> in %
	IFRS	Adj.	Non-<br><br>IFRS	Currency<br><br> <br>Impact	Non-IFRS<br><br> <br>Constant<br><br> <br>Currency	IFRS	Adj.	Non-<br><br>IFRS	IFRS	Non-<br><br>IFRS	Non-IFRS<br><br> <br>Constant<br><br> <br>Currency^1^
Revenue<br> Numbers
Cloud	5,876		5,876	–361	5,515	4,421		4,421	33	33	25
Software<br> licenses	743		743	–35	708	1,133		1,133	–34	–34	–38
Software<br> support	5,900		5,900	–251	5,649	5,624		5,624	5	5	0
Software<br> licenses and support	6,643		6,643	–287	6,357	6,757		6,757	–2	–2	–6
Cloud<br> and software	12,519		12,519	–647	11,872	11,178		11,178	12	12	6
Services	2,075		2,075	–108	1,967	1,839		1,839	13	13	7
Total<br> revenue	14,594		14,594	–755	13,839	13,017		13,017	12	12	6
Operating<br> Expense Numbers
Cost<br> of cloud	–1,822	116	–1,706			–1,444	108	–1,336	26	28
Cost<br> of software licenses and support	–841	45	–796			–939	50	–889	–10	–10
Cost<br> of cloud and software	–2,663	161	–2,502			–2,383	158	–2,225	12	12
Cost<br> of services	–1,635	133	–1,502			–1,447	139	–1,308	13	15
Total<br> cost of revenue	–4,298	294	–4,003			–3,830	297	–3,533	12	13
Gross<br> profit	10,296	294	10,591			9,187	297	9,484	12	12
Research<br> and development	–2,970	284	–2,686			–2,478	251	–2,227	20	21
Sales<br> and marketing	–4,330	520	–3,810			–3,491	482	–3,009	24	27
General<br> and administration	–1,034	415	–619			–1,098	522	–576	–6	7
Restructuring	–119	119	0			–164	164	0	–27	NA
Other<br> operating income/expense, net	–118	0	–118			–12	0	–12	>100	>100
Total<br> operating expenses	–12,868	1,632	–11,236	628	–10,608	–11,073	1,715	–9,357	16	20	13
Profit<br> Numbers
Operating<br> profit (loss)	1,726	1,632	3,358	–127	3,231	1,944	1,715	3,660	–11	–8	–12
Other<br> non-operating income/expense, net	–69	0	–69			29	0	29	<-100	<-100
Finance<br> income	521	0	521			1,549	0	1,549	–66	–66
Finance<br> costs	–695	0	–695			–381	0	–381	82	82
Financial<br> income, net	–174	0	–174			1,168	0	1,168	<-100	<-100
Profit<br> (loss) before tax	1,483	1,632	3,115			3,141	1,715	4,856	–53	–36
Income<br> tax expense	–648	–208	–856			–622	–300	–922	4	–7
Profit<br> (loss) after tax	835	1,424	2,259			2,519	1,415	3,934	–67	–43
Attributable<br> to owners of parent	1,074	1,232	2,306			2,396	1,310	3,706	–55	–38
Attributable<br> to non-controlling interests	–239	192	–47			123	105	228	<-100	<-100
Key<br> Ratios
Operating<br> margin (in %)	11.8		23.0		23.3	14.9		28.1	–3.1pp	–5.1pp	–4.8pp
Effective<br> tax rate (in %)^2^	43.7		27.5			19.8		19.0	23.9pp	8.5pp
Earnings<br> per share, basic (in €)	0.92		1.96			2.03		3.14	–55	–37

^1^ Constant-currency period-over-period changes are calculated by comparing the current year's non-IFRS constant-currency numbers with the non-IFRS number of the previous year's respective period.

^2^ The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in the first half of 2022 and 2021 mainly resulted from tax effects of share-based payment expenses, acquisition-related charges and restructuring expenses.

Due to rounding, numbers may not add up precisely.

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Non-IFRSAdjustments Actuals and Estimates – Half Year

€<br> millions	Estimated<br> Amounts for<br><br> <br>Full<br> Year 2022	Q1–Q2<br><br> <br>2022	Q1–Q2<br><br> <br>2021
Operating<br> profit (loss) (IFRS)		1,726	1,944
Adjustment<br> for acquisition-related charges	620–720	328	296
Adjustment<br> for share-based payment expenses	2,500–2,700	1,184	1,256
Adjustment<br> for restructuring	130–150	119	164
Operating<br> expense adjustments		1,632	1,715
Operating<br> profit (loss) (non-IFRS)		3,358	3,660

Non-IFRS-Adjustmentsby Functional Areas – Half Year

€<br> millions	Q1–Q2 2022					Q1–Q2<br> 2021
	IFRS	Acquisition-<br><br> <br>Related	SBP^1^	Restruc-turing	Non-IFRS	IFRS	Acquisition-<br><br> <br>Related	SBP^1^	Restruc-turing	Non-IFRS
Cost<br> of cloud	–1,822	85	31	0	–1,706	–1,444	80	28	0	–1,336
Cost<br> of software licenses and support	–841	15	30	0	–796	–939	16	34	0	–889
Cost<br> of services	–1,635	11	122	0	–1,502	–1,447	10	129	0	–1,308
Research<br> and development	–2,970	5	279	0	–2,686	–2,478	3	248	0	–2,227
Sales<br> and marketing	–4,330	205	315	0	–3,810	–3,491	181	301	0	–3,009
General<br> and administration	–1,034	7	408	0	–619	–1,098	6	516	0	–576
Restructuring	–119	0	0	119	0	–164	0	0	164	0
Other<br> operating income/expense, net	–118	0	0	0	–118	–12	0	0	0	–12
Total<br> operating expenses	–12,868	328	1,184	119	–11,236	–11,073	296	1,256	164	–9,357

^1^ Share-based payments

Due to rounding, numbers may not add up precisely.

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Revenueby Region (IFRS and Non-IFRS) – Half Year

€<br> millions	Q1–Q2 2022				Q1–Q2<br> 2021		∆<br> in %
	IFRS	Non-IFRS	Currency<br><br> <br>Impact	Non-IFRS<br><br> <br>Constant<br><br> <br>Currency	IFRS	Non-IFRS	IFRS	Non-IFRS	Non-IFRS<br><br> <br>Constant<br><br> <br>Currency^1^
Cloud Revenue by Region
EMEA	2,036	2,036	–57	1,979	1,547	1,547	32	32	28
Americas	3,094	3,094	–282	2,812	2,291	2,291	35	35	23
APJ	746	746	–22	724	582	582	28	28	24
Cloud<br> revenue	5,876	5,876	–361	5,515	4,421	4,421	33	33	25
Cloud<br> and Software Revenue by Region
EMEA	5,355	5,355	–100	5,255	5,050	5,050	6	6	4
Americas	5,265	5,265	–488	4,777	4,336	4,336	21	21	10
APJ	1,899	1,899	–60	1,839	1,792	1,792	6	6	3
Cloud<br> and software revenue	12,519	12,519	–647	11,872	11,178	11,178	12	12	6
Total<br> Revenue by Region
Germany	2,129	2,129	–3	2,126	1,957	1,957	9	9	9
Rest<br> of EMEA	4,110	4,110	–114	3,997	3,898	3,898	5	5	3
Total<br> EMEA	6,239	6,239	–117	6,123	5,855	5,855	7	7	5
United<br> States	5,028	5,028	–456	4,571	4,166	4,166	21	21	10
Rest<br> of Americas	1,161	1,161	–115	1,046	974	974	19	19	7
Total<br> Americas	6,189	6,189	–571	5,617	5,140	5,140	20	20	9
Japan	613	613	19	632	628	628	–2	–2	1
Rest<br> of APJ	1,553	1,553	–86	1,467	1,394	1,394	11	11	5
Total<br> APJ	2,166	2,166	–67	2,099	2,022	2,022	7	7	4
Total<br> revenue	14,594	14,594	–755	13,839	13,017	13,017	12	12	6

^1^ Constant-currency period-over-period changes are calculated by comparing the current year's non-IFRS constant-currency numbers with the non-IFRS number of the previous year's respective period.

Due to rounding, numbers may not add up precisely.

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GeneralInformation

Forward-LookingStatements

This half-year report contains forward-looking statements and information based on the beliefs of, and assumptions made by, our management using information currently available to them. Any statements contained in this report that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current expectations, assumptions, and projections about future conditions and events. As a result, our forward-looking statements and information are subject to uncertainties and risks, many of which are beyond our control. If one or more of these uncertainties or risks materializes, or if management’s underlying assumptions prove incorrect, our actual results could differ materially from those described in or inferred from our forward-looking statements and information. We describe these risks and uncertainties in the Risk Management and Risks section, respectively in the there-mentioned sources.

The words “aim,” “anticipate,” “assume,” “believe,” “continue,” “could,” “counting on,” “is confident,” “development,” “estimate,” “expect,” “forecast,” ”future trends,” “guidance,” “intend,” “may,” ”might,” “outlook,” “plan,” “project,” “predict,” “seek,” “should,” “strategy,” “want,” “will,” “would,” and similar expressions as they relate to us are intended to identify such forward-looking statements. Such statements include, for example, those made in the Performance Against Our Outlook for 2022 section, the Risk Management and Risks section (including but not limited to statements in this section pertaining to the Russia/Ukraine crisis or cyber incidents), the Expected Developments andOpportunities section, and other forward-looking information appearing in other parts of this half-year financial report. To fully consider the factors that could affect our future financial results, both our Integrated Report 2021 and our Annual Report on Form 20-F for 2021, should be considered, as well as all of our other filings with the Securities and Exchange Commission (SEC). In addition, any delays in our structured exit from Russia and Belarus, or further adverse developments in Russia’s war against Ukraine, or cyber incidents impacting SAP could cause our actual results and performance to differ materially from any projections expressed in or implied by our forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as at the date specified or the date of this report. We undertake no obligation to publicly update or revise any forward-looking statements as a result of new information that we receive about conditions that existed upon issuance of this report, future events, or otherwise unless we are required to do so by law.

This report includes statistical data about the IT industry and global economic trends that comes from information published by sources including IDC, the ECB, and the IMF. This type of data represents only the estimates of IDC, ECB, IMF, and other sources of industry data. SAP does not adopt or endorse any of the statistical information provided by sources such as IDC, ECB, IMF, or other similar sources that is contained in this report. The data from these sources is subject to risks and uncertainties, and subject to change based on various factors, including those described above, in the Risk Management and Risks section, and elsewhere in this report. These and other factors could cause our results to differ materially from those expressed in the estimates made by third parties and SAP. We caution readers not to place undue reliance on this data.

All of the information in this report relates to the situation as at June 30, 2022, or the half year ended on that date unless otherwise stated.

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Non-IFRSFinancial Information

This half-year report contains non-IFRS measures as well as financial data prepared in accordance with IFRS. We present and discuss the reconciliation of these non-IFRS measures to the respective IFRS measures in the Supplementary Financial Informationsection. For more information about non-IFRS measures, see our Web site www.sap.com/investors/sap-non-ifrs-measures.

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AdditionalInformation

FinancialCalendar

October 25, 2022

Third-quarter 2022 earnings release, conference call for financial analysts and investors

January 26, 2023

Fourth-quarter and full-year 2022 preliminary earnings release, conference call for financial analysts and investors

May 11, 2023

Annual General Meeting of Shareholders, Mannheim, Germany

InvestorServices

Additional information about this half-year report is available online at www.sap.com/investors, including the official quarterly statement, a presentation about the quarterly results, and a recording of the conference call for financial analysts.

The “Financial Reports” tab contains the following publications:

–	SAP<br> Integrated Report (IFRS, PDF, www.sapintegratedreport.com)
–	SAP<br> Annual Report on Form 20-F (IFRS, PDF)
---	---
–	SAP SE<br> Statutory Financial Statements and Review of Operations (HGB, German only, PDF)
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–	Half-Year<br> Report (IFRS, PDF)
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–	Quarterly<br> Statements (IFRS, PDF)
---	---

www.sap.com/investorsis also the place to look for in-depth information about stock, debt, and corporate governance; financial and event news; and various services designed to help investors find the information they need fast (see "Investor Services”). These include SAP INVESTOR, our free magazine for shareholders, an e-mail and text message news service, and a Twitter feed.

For sustainability reasons and faster distribution, SAP decided to refrain from printing reports.

You can reach us by phone at +49 6227 7-67336, send a fax to +49 6227 7-40805, or e-mail us at [email protected].

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Addresses

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Corporate Financial Reporting

Published on July 21, 2022.

The German version of this Half-Year Report can be found under https://www.sap.com/corporate/de/investors.html.

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