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    Adam Wood • Morgan Stanley

    Adam Wood's questions to SAP SE (SAP) leadership

    Adam Wood's questions to SAP SE (SAP) leadership • Q2 2025

    Question

    Adam Wood of Morgan Stanley asked about the expected slowdown in operating margin improvement in the second half of 2025, questioning the balance between macroeconomic caution and planned investments for growth.

    Answer

    CFO Dominik Asam explained that H1 2025 operating profit was significantly boosted by a €331 million improvement in stock-based compensation, an effect that will not repeat in H2. He also noted ongoing workforce adjustments will incur costs. CEO Christian Klein added that SAP is focused on long-term margin expansion by decoupling expense and revenue growth through internal AI adoption and operational efficiencies.

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    Adam Wood's questions to SAP SE (SAP) leadership • Q1 2025

    Question

    Adam Wood of Morgan Stanley inquired about the company's flexibility to protect profitability and cash flow if revenue weakens, and asked about the potential deal size uplift from adding Business Data Cloud to a RISE contract.

    Answer

    CFO Dominik Asam confirmed they have flexibility through hiring controls and discretionary spending but must balance this with long-term investments. CEO Christian Klein added that deal sizes for Business Data Cloud vary, with significant potential for customers migrating from BW systems, and that premium margins will come from the semantic data products.

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    Adam Wood's questions to SAP SE (SAP) leadership • Q3 2024

    Question

    Adam Wood from Morgan Stanley inquired about how SAP is managing the risks of its sales force reorganization and workforce changes to avoid disruption in the critical fourth quarter, and asked for a breakdown of the strong free cash flow between structural improvements and one-off benefits.

    Answer

    CEO Christian Klein stated that the bookings plan is built on continued RISE adoption, net-new customer growth via GROW, and significant cross-sell potential. He emphasized his personal involvement and the new leadership's focus on streamlining the go-to-market model and empowering partners, expressing confidence in the Q4 execution. CFO Dominik Asam later clarified that the strong free cash flow was more of a phasing topic but solidified the company's confidence in its 2025 ambition.

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    Adam Wood's questions to SAP SE (SAP) leadership • Q2 2024

    Question

    Adam Wood inquired whether the strong adoption of Business AI is driven by a general customer desire for the technology, an acceleration of S/4HANA migrations, or if specific use cases are resonating most.

    Answer

    CEO Christian Klein confirmed that specific use cases are driving adoption. He highlighted Joule for efficiency gains in HR, finance, and supply chain, and noted significant traction in document management, citing 150,000 weekly users of GenAI features in Concur for automated expense processing. He also mentioned strong interest in AI for managing supplier and customer contracts.

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