SAP Capital Markets Day 2019 Presentation
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Welcome to SAP Capital Markets Day 2019 Luka Mucic Bill McDermott Chief Financial Officer Chief Executive Officer Executive Board Member Rob Enslin Christian Klein President, Cloud Business Group Chief Operating Officer Executive Board Member Executive Board Member Jennifer Morgan President, Global Customer Operations Juergen Mueller Americas & Asia Pacific Japan Chief Technology Officer Executive Board Member Executive Board Member Alex Atzberger President, SAP Customer Experience © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 1 Agenda 09:30 – 09:35 am Welcome Stefan Gruber, Head of Investor Relations 09:35 – 10:05 am Strategy and Vision: Opportunity in Time of Disruption Bill McDermott, CEO 10:05 – 10:30 am Delivering the Intelligent Enterprise Christian Klein and Juergen Mueller, Executive Board Members 10:30 – 10:45 am Break 10:45 – 11:15 am SAP C/4HANA Shaking up CRM Alex Atzberger, President SAP Customer Experience 11:15 – 11:45 am Customer Perspective Hosted by Jennifer Morgan, Executive Board Member 11:45 am – 12:10 pm Charting the Course for 2023 Luka Mucic, CFO and Executive Board Member 12:10 – 12:55 pm Q&A 12:55 – 2:00 pm Buffet Lunch Reception 02:15 – 03:45 pm Breakout Sessions 03:45 – 04:30 pm Coffee and Networking © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3 Safe Harbour Statement 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 (“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. © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2 Opportunity in Time of Disruption Bill McDermott, CEO © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3 SAP: “Structural Incline” Doubled Addressable Be the most innovative cloud company powered by SAP HANA Intelligent Enterprise Market Public Cloud SAP Business Suite powered by SAP HANA SAP Analytics Cloud • Integrated Intelligent Suite SAP HANA Enterprise Cloud • Revolutionizing Customer Launched Experience with C/4HANA €5.0bn • Leading the Experience €3.8bn Management category Sybase €3.0bn Cloud €2.3bn Revenue • Innovation with Intelligent €1.1bn €0.3bn Systems (Leonardo) € 0.0bn €0.0bn €0.8bn UNTIL 2010 2011 2012 2013 2014 2015 2016 2017 2018 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC All figures based on non-IFRS. 4 The fastest growing cloud at scale in business software Cloud Peer Group Large Scale Peer Group 40% 15% Cloud Fastest Growing Cloud Growing faster than large scale Top line Top line peer group Growth Growth Highly profitable (~30% Op. Margin) 10% 0% $1 B $15 B 10% 50% Cloud Revenue Operating Margin © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Sources: Company filings, Factset, Morgan Stanley, Deutsche Bank, Credit Suisse estimates 5 Driving sustainable operating profit growth Hyperscaler leverage Higher margin Services Hiring discipline Ecosystem Increased Cloud Gross Margin Keeping the “Meet or Exceed” Promise © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 6 Winning the experience economy Xexperience DATA 1.8B CX EX PX BX experience touchpoints run Customer Employee Product Brand on Qualtrics Experience Experience Experience Experience DATA MANAGEMENT Cloud Platform | Data Management | AI Customer Supply Chain ERP HCM Spend 77% Experience Management Management Of the world‘s EXPERIENCE MANAGEMENT EXPERIENCE transactions across 25 industries touch Ooperational SAP systems DATA © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7 The SAP “Top Ten” Winning Strategy 2023 Growth Ambition 1. X+O: Experience Management (X) 6. #1 in Experience Management Meets Intelligent Enterprise (O) 7. Fastest Growing in Customer 2. Next Gen CRM: C/4+S/4 End-to-End Experience 3. Industry 4.0: Next-Gen Manufacturing 8. #1 in Cloud ERP and Supply Chain 9. #1 in Cloud Workforce Management 4. Automation and Augmented Humanity: SAP Leonardo Everywhere 10. Global Standard in Business Networks: Trillions in Commerce 5. New Skills, Flexible Workforce: SAP SuccessFactors + SAP Fieldglass © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Based on financial analyst commentary following disclosure of SAP’s Q4 2018 results 8 DELIVER the Intelligent Enterprise Christian Klein (COO) and Juergen Mueller (CTO) Executive Board Members © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 9 The Intelligent Enterprise by SAP – ONE Seamless Customer Experience SEAMLESS CUSTOMER EXPERIENCE Marketing Sales Services Design Plan Manufacture Deliver Operate Employee Finance Network & Engagement Spend Management © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 10 The Intelligent Enterprise by SAP – ONE Seamless Customer Experience SEAMLESS CUSTOMER EXPERIENCE Customer Manufacturing Marketing ExperienceSales Services Design Plan Manufacture Deliver Operate & Supply Chain Employee Engagement DigitalFinance Core Network & Spend Management © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 11 Intelligent Business Processes With SAP Leonardo Customer Manufacturing & Experience Supply Chain Employee Digital Core Network & Spend Engagement Management Machine Internet Big Data Blockchain Learning of Things SAP Leonardo © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 12 We Empower Decision Makers with End-to-End Real Time Steering % % % % % % % % % Real time steering across the value chain Reporting | Predictive Analytics | Integrated Planning Customer Manufacturing & Experience Supply Chain Employee Digital Core Network & Spend Engagement Management SAP Cloud Platform powered by HANA © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 13 The Intelligent Enterprise Digital Core Employee Network & Spend Engagement Management Intelligent Suite Customer Intelligent Technologies Manufacturing & Experience Supply Chain SAP Leonardo Digital Platform Data Management Cloud Platform © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 14 Adoption of SAP S/4HANA is kicking in by offering unique potential across all Lines of Business. SAP S/4HANA Adoption 10,500+ # of licensed customers Licensed customers 10,500+ Ahead of R/3 Adoption 40% Net new customer share 132 Accelerated Cloud Growth in Finance and Professional Services 2015 2016 2017 2018 2019 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 15 The Intelligent Enterprise Digital Core Manufacturing & Employee Supply Chain Engagement Intelligent Suite Network & Spend Customer Management Experience Intelligent Technologies SAP Leonardo Digital Platform Data Management Cloud Platform © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 16 SAP C/4HANA Shaking up CRM Alex Atzberger, President SAP Customer Experience @aatzberger #BeBold © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 17 We live in a Experience Economy 80% $2.5T $100B of customers have chosen Impact of yearly loss of trust due Estimated market size for customer to switch brands due to a to abuse of data privacy and experience solutions, platform and poor customer experience1 brand loyalty2 integration to operational systems3 © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 1 Bain 2 Adweek 3 SAP CMI Model 18 CRM has evolved into Customer Experience management platforms Legacy CRM CX Suites Transactional data Operational + Experience data Siloed view and processes with Seamless end-to-end journeys designed focus on sales force automation around customer across all channels Customer privacy not in scope Privacy built-in Monolithic platforms Microservices-driven agile platform © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 19 SAP Marketing Service Cloud C/4HANA Cloud 2.8 Billion 5 Clouds and 7 Suite Attributes 61 million personalizations Service Tickets Commerce Sales Cloud Cloud 5-year Gartner MQ Leader 5+ million Sales Professionals Customer Data Cloud 1 Billion+ consent profiles Harmonized End-to-End Business and Master Suite Intelligence Platform Extensibility Open Ecosystem User Experience Processes Data Services and Analytics Services and Integration © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 20 Best-of-Breed: Recognized product leadership Gartner Front Runners for Forrester Wave for B2C Forrester Wave for B2B Forrester Wave for Gartner Magic Quadrant for Field Services Commerce Suites Commerce Suites Customer Identity Mgmt Multichannel Marketing IDC MarketScape AI in Gartner Magic Quadrant for Forrester