About SAP

SAP SE (SAP) operates as a global software and service provider. SAP delivers a full portfolio of solutions, hosts or manages elements of the company’s customers’ businesses in the cloud, processes large amounts of data, and provides mobile solutions to users. SAP has been named a market share leader in the following areas worldwide: enterprise applications software, enterprise resource management applications, supply chain management applications, procurement applications software, travel and expense management software, and enterprise resource planning software, among others. The company delivers intelligent technologies across procurement, logistics, asset management, and industry-specific offerings to enable a global business network spanning industries and value chains. Segment Information As of December 31, 2022, SAP had two reportable segments: Applications, Technology & Services; and Qualtrics. The Applications, Technology & Services segment derives its revenues primarily from the sale of software licenses, support offerings, and cloud subscriptions. The Qualtrics segment derives its revenues mainly from the sale of experience management cloud solutions that run front-office functions across experience data, and from the sale of related services. Due to their size, the following segments are non-reportable: The Business Process Intelligence segment was renamed to SAP Signavio without changing the composition of this segment. The segment derives its revenues from the sale of business process transformation offerings from SAP and Signavio, a company acquired by SAP in 2021. The Emarsys segment derives its revenues mainly from the sale of cloud-based customer experience offerings and from the sale of related services. In the first quarter of 2022, the acquisition of Taulia Inc., San Francisco, California (USA) (Taulia), a leading provider of working capital management solutions, led to a new operating segment. The company established two new operating segments, the Business Network segment and the Sustainability segment, in 2022: The Business Network segment combines SAP’s network offerings, covering procurement, logistics, asset management, and industry-specific solutions spanning end-to-end value chains. The segment generates revenues from cloud application subscriptions, transactional fees, and services. The Sustainability segment bundles a portfolio of sustainability-related solutions that enables SAP’s customers to record and report financial and non-financial metrics and act on improving their sustainability footprint across all ESG (Environmental, Social, and Governance) dimensions. Acquisitions In March 2022, SAP acquired a majority stake of Taulia, a leading provider of working capital management solutions. Taulia’s solutions are integrated into SAP’s portfolio, as well as continuing to be available as standalone solutions. Divestitures On August 17, 2022, SAP and Francisco Partners (FP) announced that FP had signed a definitive agreement with SAP America, Inc. under which FP would acquire SAP Litmos from SAP. The transaction closed on December 1, 2022, following satisfaction of applicable regulatory and other approvals. Sapphire Ventures In addition to the company’s investments in organic growth and acquisitions, SAP supports entrepreneurs that aspire to build industry-leading businesses through venture capital funds managed by Sapphire Ventures. Sapphire Ventures has invested in more than 200 companies. It pursues opportunities in which it can help fuel enterprise growth by adding expertise, relationships, geographic reach, and capital. It places a particular focus on companies in Europe, Israel, the United Kingdom, and the United States. Product Strategy SAP’s suite of applications allows enterprises to manage their resources, spend, employees, and customer relationships. The SAP Business Technology Platform (SAP BTP) is the platform for SAP, the company’s customers, and its ecosystem. The strategic pillars of SAP’s product strategy and their corresponding updates for the year are as follows: ERP Cloud SAP S/4HANA provides software capabilities mainly for finance, risk management, project management, procurement, manufacturing, supply chain management, asset management, and research and development. It also includes platform capabilities such as database (SAP HANA), data management, and lifecycle/solution management, as well as cloud ERP solutions, which the company’s customers consume as part of their transformation to SAP S/4HANA. At the company’s flagship conference SAP Sapphire in May 2022, 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. In addition, SAP and Apple have expanded their partnership and released a new suite of iOS apps designed to streamline the digital supply chain and equip workers with intuitive tools. Human Experience Management SAP SuccessFactors solutions for human resources aim to empower organizations to create an agile and future-ready workforce in a rapidly changing workplace. Customers can use new offers like skills ontology, personal growth portfolio for employees, and dynamic teams to work across traditional organizational structures. The portfolio includes core HR and payroll, talent management, employee experience management, and people and workforce analytics. Spend Management SAP’s intelligent spend management solutions aim to provide a more unified view of a customer’s spending to reduce costs, mitigate risks, improve collaboration, and make sure every spend decision is aligned with the business strategy. They cover direct and indirect spend, travel and expense, and external workforce management. SAP Ariba combines industry-leading cloud-based applications to help companies discover and collaborate with a global network of partners. Customer Experience The SAP Customer Experience portfolio aims to deliver a personalized view across customers and business partners, connecting the front- and back office with solutions spanning from point-of-sale to manufacturing, to logistics, customer experience, and returns management. SAP Business Technology Platform SAP Business Technology Platform (SAP BTP) is a unified, business-centric, and open platform that helps enable customers and partners to build, integrate, and extend applications while gaining insights from business data in a cloud-native way. SAP BTP aims to bring together capabilities across application development, automation, data and analytics (including planning), integration, and artificial intelligence (AI) into one platform. In 2022, the company launched the SAP Build portfolio, bringing together SAP Build Apps; SAP Build Process Automation; and SAP Build Work Zone into a unified development environment as part of SAP BTP. The SAP Build portfolio aims to enable business users to integrate systems; intelligently monitor, analyze, and automate processes; and build applications using SAP BTP and business application data from SAP – all without moving data to an external system. Industry Cloud SAP’s industry cloud solutions provide the opportunity for SAP and the company’s partners to extend the company’s core with modular solutions addressing industry-specific functions built on SAP BTP. Business Network The SAP Business Network solution portfolio aims to enable companies to collaborate with trading partners for greater supply chain visibility. SAP Signavio The company’s business process transformation solutions help its customers scan their operations to understand and improve their business process landscape. The company supports analysis of current processes, benchmarking against best practices, and reconfiguring current processes towards future processes. The portfolio includes SAP Signavio solutions, as well as SAP Process Automation. 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. Sustainability SAP offers sustainability solutions and services that can help customers drive sustainable practices not only inside their organization, but across the entire value chain. SAP Cloud for Sustainable Enterprises brings together a comprehensive solution portfolio for businesses that aims to enable businesses to manage sustainability holistically. Product innovations include the following solutions: SAP Sustainability Control Tower for holistic steering and reporting across ESG metrics, SAP Product Footprint Management for emissions accounting and management, and SAP Responsible Design and Production to reduce waste and accelerate circular business. SAP also plans to further complement the sustainability portfolio with solutions that support environmental, social, and governmental topics. As of December 31, 2022, SAP and PwC announced a new co-innovation strategy to make sustainability an integral part of standard business operations to help organizations achieve their ESG and net zero target. Experience Management Experience management (XM) refers to both Qualtrics technology, as well as the discipline of seeking out and closing the experience gaps across the four core areas of businesses – customer, product, employee, and brand. Partners and Ecosystem SAP’s ecosystem consists of more than 20,000 partners worldwide in more than 140 countries. Partners can choose from a variety of SAP solutions to create their own unique SAP-qualified partner-packaged solution to provide small and midsize enterprises with fixed-scope packaged solutions. Services and Support In April 2022, SAP announced that the company reimagined its cloud services and support portfolio to focus on customer adoption and consumption. This portfolio includes SAP Enterprise Support which comes with foundational tools and services, curated content, and mission-critical support. It can be enhanced with incremental success plans, such as SAP Preferred Success and SAP Cloud Application Services, and success services through business journeys and consulting services to address specific objectives, timelines, and plans. When customers pursue enterprise-wide transformational change, SAP offers SAP MaxAttention and SAP ActiveAttention plans for tailored, long-term strategic engagement. Patents As of December 31, 2022, SAP held a total of close to 13,000 validated patents worldwide. Of these, more than 800 were granted and validated in 2022. Trademarks SAP, Adaptive Server, Advantage Database Server, BusinessObjects, ExpenseIt, PartnerEdge, PowerBuilder, PowerDesigner, Qualtrics, Replication Server, SAP Ariba, SAP BusinessObjects Explorer, SAP BW/4HANA, SAP Concur, SAP EarlyWatch, SAP Fieldglass, SAP Fiori, SAP HANA, SAP Jam, SAP Lumira, SAP S/4HANA, SAP SuccessFactors, SAP Vora, SAPPHIRE, SAP SIGNAVIO, SQL Anywhere, Taulia, The Best Run SAP, TripIt, TripLink, Web Intelligence and other SAP products and services, as well as their respective logos are trademarks or registered trademarks of the company (or an SAP affiliate company) in Germany and other countries. Research and Development The company’s research and development expenses were €6,166 million in 2022. Seasonality The company’s business has historically experienced the highest revenue in the fourth quarter of each year (year ended December 2022), primarily due to year-end capital purchases by customers. Such factors have resulted in 2022 first quarter revenue being lower than revenue in the prior year’s fourth quarter. Unlike the company’s on-premise software revenues, the company’s on-premise support revenues and cloud revenues are less subject to seasonality and thus help to reduce this effect. Strategy The SAP strategy is focused on helping customers transform into intelligent, sustainable enterprises. The company develops and pursues its global data protection and privacy strategy in accordance with the company’s business strategy. The strategy consists of four pillars to help comply with applicable data protection laws and regulations. These pillars comprise the global data protection and privacy policy; mandatory global data protection and privacy training for employees; the company’s global data protection and privacy coordinator network; and the global data protection management system – and all aiming to ensure that the company complies with applicable data protection laws. History SAP SE was founded in 1972.