SAP SE - SAP STOCK NEWS

SAP announced strong Q3 2024 results, with cloud revenue up 25% to €4.35 billion and total revenue up 9% to €8.47 billion. Key highlights include:

- Current cloud backlog grew 25% to €15.38 billion
- Cloud ERP Suite revenue up 34% to €3.64 billion
- IFRS operating profit up 29% to €2.21 billion
- Non-IFRS operating profit up 27% to €2.24 billion
- Free cash flow increased 44% to €1.25 billion

SAP raised its 2024 outlook, now expecting:

- €29.5 – 29.8 billion cloud and software revenue
- €7.8 – 8.0 billion non-IFRS operating profit
- €3.5 – 4.0 billion free cash flow

The company continues to execute its 2024 transformation program, focusing on AI and operational efficiencies. SAP completed the acquisition of WalkMe and saw strong customer adoption of 'RISE with SAP' and 'GROW with SAP' offerings.

SAP SE unveiled groundbreaking AI innovations at its annual SAP TechEd conference, positioning its generative AI copilot Joule at the forefront of business transformation. Key announcements include:

1. Collaborative AI agents with custom skills for complex cross-disciplinary tasks

2. SAP Knowledge Graph, a solution to help developers unlock the full value of SAP data by connecting it with rich business context

3. Expanded Joule capabilities to support 80% of SAP's most-used business tasks

4. New generative AI developer features in SAP Build, including code explanation and documentation search

5. Extensibility Wizard for easier access to SAP Build from SAP S/4HANA Cloud Public Edition

These innovations aim to drive real business outcomes, harnessing the power of AI, data, and new development solutions to catalyze growth.

SAP SE and Ambipar have announced a partnership to launch Net Zero as a Service, combining SAP's cloud solutions with Ambipar's carbon credit expertise. This service aims to help customers manage and offset carbon emissions effectively. Key features include:

1. End-to-end carbon management using SAP's ERP-centric and AI-enabled solutions
2. Access to certified carbon credits through Ambipar's AMBIFY platform on SAP Store
3. Establishment of a common data foundation for emissions measurement and decision-making

Ambipar is piloting the service in its own operations before wider availability to SAP customers. The partnership is expected to support both companies' growth objectives while helping businesses achieve their sustainability goals.

SAP is expanding its net-zero strategy in 2024 by increasing its commitment to nature conservation and making financial contributions to climate projects. The company will support carbon removal and carbon reduction projects, including reforestation and energy efficiency initiatives. SAP aims to plant and protect 25 million trees by 2030, up from its previous goal of 21 million by 2025. The company will also fund the conservation of coastal and inland wetlands.

SAP's financial contribution is determined by its own emissions and will be disclosed in terms of carbon emissions. The company believes that financing climate projects beyond its value chain should be part of every corporate sustainability agenda. SAP continues to pursue its goal of achieving net-zero emissions by 2030, 20 years earlier than initially planned.

SAP's Chief Sustainability and Commercial Officer, Sophia Mendelsohn, discusses the potential of AI in accelerating sustainability efforts, while cautioning against viewing it as a silver bullet. The press release highlights:

• 2023 recorded the hottest temperatures to date, nearing the critical 1.5°C threshold above pre-industrial levels
• Businesses must drive change in the face of intensifying climate crisis
• AI presents a unique opportunity to accelerate climate action
• AI's energy demands could undermine its benefits if not managed carefully

The article emphasizes the need for understanding AI's true potential and limitations in addressing climate change. It suggests that while AI can help scale and expedite sustainability efforts, its implementation must be carefully managed to ensure a positive return on investment and avoid potential drawbacks.

SAP has introduced a suite of cloud-based solutions to help companies implement a robust sustainability management system. This system is important for future-proofing businesses and complying with increasing regulations like the Corporate Sustainability Reporting Directive (CSRD). SAP's approach focuses on five key principles:

1. Using reliable ERP data as a foundation
2. Providing a complete view for regulatory reporting
3. Enabling in-depth calculations where needed
4. Facilitating data exchange with suppliers and customers
5. Driving transformation in operational processes and transitioning to carbon accounting

SAP's solutions include SAP Sustainability Control Tower, SAP Sustainability Footprint Management, SAP Sustainability Data Exchange, and integration with SAP Green Ledger. These tools allow companies to calculate carbon footprints, generate ESG reports, and make data-driven decisions to improve sustainability performance.

The Economist Impact report sponsored by SAP highlights the growing role of procurement in risk management and sustainability. The report, titled 'Across the procurement-verse: Changing trends in the procurement function', reveals a significant boost in executive confidence in procurement's ability to handle internal risks, rising from 64% to 83%. However, confidence in managing external risks has declined from 62% to 41% due to ongoing global challenges.

Key strategies for mitigating these risks include supply chain diversification, technological investments, and reshoring. Procurement is increasingly pivotal in ESG initiatives, with its importance rising from fifth to second place in the past year. The report also underscores the necessity of compliance with new regulations like ESRS and CSRD, with 68% of executives now confident in procurement's ESG capabilities, up from 49%.

SAP's technologies, such as the SAP Business Network, have facilitated vast B2B transactions and are critical for enhancing procurement processes and achieving strategic priorities.

SAP is partnering with organizations like UNICEF to support young innovators in addressing climate change and air pollution. The company recognizes that over 1 billion children globally are at extremely high risk due to climate impacts. SAP's enterprise software expertise is being leveraged to help large companies drive sustainability across their value chains.

The PR highlights the story of Enkhuun Byambadorj, a young innovator from Mongolia who co-founded Breathe Mongolia at age 17. This organization uses technology to provide centralized air quality data for Mongolian communities, addressing the severe air pollution problem in the country.

As Climate Week approaches, SAP is collaborating with GenU, a UNICEF initiative, to represent the value of working with young innovators. The company is committed to supporting youth inclusion in innovation strategies and sustainability programs throughout the year.

SAP SE (NYSE: SAP) has announced the participation of its executives in an upcoming investor event. Dominik Asam, CFO and member of the SAP Executive Board, will hold a Fireside Chat at the Goldman Sachs Communacopia & Technology Conference in San Francisco, California, US. The event is scheduled for Tuesday, September 10, 2024, from 5:50 pm to 6:25 pm CEST (11:50 am to 12:25 pm EDT).

The event will be webcast, and a replay will be available on the SAP Investor Relations website. For questions about the event, investors can contact SAP Investor Relations via email at investor@sap.com or by phone at +49 6227 767336 during CET office hours.