SAP Proposes Increased Dividend of €1.85 per Share

Rhea-AI Summary

SAP SE (NYSE: SAP) announced a recommended dividend of €1.85 per share for fiscal year 2020, marking a 17% increase from the previous year. If approved, this would distribute approximately €2.18 billion to shareholders, with a payout ratio of 41%. The dividend is set for payment on or after May 18, 2021. CFO Luka Mucic emphasized strong financial performance despite 2020's challenges. The upcoming Annual General Meeting is scheduled for May 12, 2021, where two shareholder representatives will be elected.

Positive

• Proposed dividend increased by €0.27 or 17% year-over-year.
• Total dividend distribution estimated at €2.18 billion.

Negative

• Payout ratio decreased to 41% from 55% in 2019.

WALLDORF, Germany, Feb. 25, 2021 /PRNewswire/ -- The Supervisory Board of SAP SE (NYSE: SAP) has decided, in alignment with the Executive Board, to recommend that shareholders approve a dividend of €1.85 per share for fiscal year 2020. This represents a year-over-year increase of €0.27 or 17%. If the shareholders approve this recommendation and if treasury shares remain at the 2020 closing level, the total amount of dividends to be distributed will be approximately €2.18 billion (2019: €1.86 billion), representing a pay-out ratio of 41% (2019: 55%). The 2020 fiscal year dividend is scheduled to be paid on or after May 18, 2021.

"Despite being faced with unique challenges in 2020, we delivered strong IFRS profit and a record year for cash flow. We believe our shareholders should participate in this success. Therefore, we recommend a 17% increase in dividend," said Luka Mucic, Chief Financial Officer, SAP SE.

Two by-elections of shareholder representatives in the SAP Supervisory Board will be held at the 2021 Annual General Meeting of Shareholders (AGM). Diane Greene resigned from the Supervisory Board in December 2020. Dr. h.c. mult. Pekka Ala-Pietilä announced he will retire from the Supervisory Board with effect from the close of the Annual General Meeting in May 2021. Following the proposal of the Nomination Committee, the Supervisory Board nominated two candidates to stand for election as shareholders' representatives:

• Dr. Qi Lu (59), Beijing, China, Founder & Chief Executive Officer, MiraclePlus Ltd., Beijing, China. Dr. Lu has extensive experience in the US and Chinese software industry, including senior executive roles at Microsoft and Baidu. Dr. Lu was named to the SAP Supervisory Board by Local Court of Mannheim effective December 21, 2020. If elected, his term would expire in 2023. Dr. Lu is a citizen of the United States of America.
  
  
• Dr. Rouven Westphal (48), Potsdam, Germany, Member of the Executive Board of the Hasso Plattner Foundation, Potsdam, Germany, and Managing Director of the General Partner of HPC Germany GmbH & Co. KG, Potsdam, Germany. Dr. Westphal has experience in business consultancy and the venture capital industry, and was co-founder and managing director of EXASOL AG (formerly exasol GmbH). If elected, his term would expire in 2022. Dr. Westphal is a citizen of Germany.

The AGM will be held on May 12, 2021, as a virtual event. More information will be made available in advance of the AGM at www.sap.com/agm.

Additionally, the Supervisory Board has extended the contract of Juergen Mueller, Chief Technology Officer and member of the SAP Executive Board, for three years through the end of 2024.

Note to holders of SAP ADRs (American Depositary Receipts):
One SAP ADR represents one SAP SE share. The final dividend amount per ADR is dependent upon the euro/US dollar exchange rate. Since SAP SE pays cash dividends on the ordinary shares in euro, the exchange rate fluctuations will affect the US dollar amounts received by holders of ADRs. The final dividend payment by SAP SE to the depositary bank is scheduled for May 18, 2021 The depositary bank will then convert the dividend payment from euro into US dollars as promptly as practicable.

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: 77% of the world's transaction revenue touches an SAP® system. 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.

For customers interested in learning more about SAP products:
Global Customer Center:	+49 180 534-34-24
United States Only:	+1 (800) 872-1SAP (+1-800-872-1727)

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 as supplemented by SAP's Half Year Report furnished with the SEC on Form 6-K. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

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SOURCE SAP SE

FAQ

What is the proposed dividend amount for SAP in 2021?

The proposed dividend amount for SAP in 2021 is €1.85 per share.

When will SAP's dividend be paid?

SAP's dividend is scheduled to be paid on or after May 18, 2021.

What is the payout ratio for SAP's 2020 dividend?

The payout ratio for SAP's 2020 dividend is 41%.

How much will SAP shareholders receive in total dividends?

Shareholders are expected to receive approximately €2.18 billion in total dividends if the proposal is approved.