Mission Statement, Vision, & Core Values (2024) of SAP SE (SAP)

An Overview of SAP SE (SAP)

General Summary of SAP SE

SAP SE, founded in 1972, is a global leader in enterprise application software. The company's primary focus is on developing solutions that enable businesses to operate more efficiently. SAP's product portfolio includes cloud solutions, software licenses, and support services, with a strong emphasis on integrated business processes through its flagship product, SAP S/4HANA.

As of 2024, SAP reported total revenue of €24.798 billion for the first nine months, reflecting a 9% increase compared to the same period in 2023. The cloud revenue segment, a key growth driver, reached €12.433 billion, marking a 25% year-over-year increase. SAP continues to evolve its offerings, positioning itself as a leader in cloud computing and enterprise resource planning (ERP) solutions.

Company's Financial Performance in the Latest Financial Reports

In the third quarter of 2024, SAP's strong financial performance continued, with total revenue reaching €8.470 billion, up 9% year-over-year. The cloud revenue for the quarter was €4.351 billion, representing a 25% increase compared to Q3 2023. The Cloud ERP Suite, a significant contributor to revenue, saw a 34% increase, totaling €3.636 billion for the quarter.

Operating profit for Q3 2024 increased by 29% to €2.214 billion. Non-IFRS operating profit was reported at €2.244 billion, also reflecting a significant year-over-year increase. Free cash flow for the same period was €1.955 billion, up from €604 million in Q3 2023, indicating improved cash generation capabilities.

Introduction to SAP as a Leader in the Industry

SAP SE stands out as a leader in the enterprise software industry, particularly in the realms of cloud computing and ERP solutions. The company’s commitment to innovation and transformation is evident in its ongoing investments in business AI and strategic acquisitions, such as WalkMe, which enhance its product offerings and market competitiveness. SAP's ability to adapt to changing market dynamics and its strong financial performance underscore its leadership position.

For those interested in understanding the underlying factors contributing to SAP's success, further exploration of its strategic initiatives and market strategies is encouraged.

Mission Statement of SAP SE (SAP)

Mission Statement of SAP SE (SAP)

SAP SE's mission statement emphasizes its commitment to helping the world run better and improving people's lives. This foundational tenet guides the company in achieving its long-term goals, focusing on delivering innovative solutions that enhance business processes and drive growth for customers across various industries.

Core Component 1: Innovation

The first core component of SAP's mission is innovation. SAP strives to lead in the development of advanced technologies that enable businesses to transform their operations. In 2024, SAP's cloud revenue reached €4.35 billion, representing a 25% increase year-over-year, demonstrating the effectiveness of its innovative cloud solutions.

For example, the introduction of SAP S/4HANA Cloud, a next-generation enterprise resource planning (ERP) suite, has been pivotal in driving digital transformation for businesses globally. The revenue from the Cloud ERP suite alone was €3.64 billion in Q3 2024, up 34% from the previous year.

Core Component 2: Customer Success

Another vital aspect of SAP's mission is customer success. SAP is dedicated to ensuring that its clients achieve their business objectives through the use of its products and services. The company's Customer Net Promoter Score is projected to be between 9 and 13 in 2024, reflecting its strong focus on customer satisfaction.

In Q3 2024, SAP reported a current cloud backlog of €15.38 billion, indicating robust demand for its solutions and a commitment to supporting customer needs. Additionally, SAP's share of predictable revenue increased to 84%, showcasing the effectiveness of its long-term customer relationships.

Core Component 3: Sustainability

SAP's mission also encompasses a strong commitment to sustainability. The company aims to reduce carbon emissions across its value chain, with a target of achieving net-zero carbon emissions by 2030. In 2024, SAP continues to focus on decreasing its greenhouse gas emissions, reporting a total of 6.9 million tons of CO2 equivalents.

Moreover, SAP is actively working to increase the representation of women in executive roles, targeting 25% by the end of 2027. This commitment not only supports diversity but also aligns with global sustainability goals, reflecting SAP's broader mission to improve lives and empower communities through its business practices.

Vision Statement of SAP SE (SAP)

Vision Statement Overview

The vision statement of SAP SE (SAP) emphasizes the company's commitment to innovation and sustainability in the enterprise software industry. As of 2024, SAP aims to empower businesses through intelligent technologies while driving positive economic, environmental, and social impact.

Commitment to Innovation

In 2024, SAP's vision reflects a strong emphasis on technological advancement. The company aims to integrate artificial intelligence and machine learning into its solutions, enhancing operational efficiencies and decision-making processes for its customers. SAP reported a 25% year-over-year growth in cloud revenue, reaching €4.35 billion in Q3 2024, which underscores its commitment to cloud-based innovations.

Focus on Sustainability

SAP's vision includes a robust commitment to sustainability. The company is on track to achieve Net Zero carbon emissions by 2030. In 2024, SAP aims to steadily decrease carbon emissions across its value chain, with a target to reduce gross greenhouse gas emissions to 6.9 million tons CO2 equivalents. This aligns with its vision of creating a sustainable future through responsible business practices.

Empowering Businesses

SAP's vision also centers on empowering businesses of all sizes. The company aims to provide tools that facilitate digital transformation, allowing organizations to adapt to changing market conditions. The Employee Engagement Index is projected to be between 70% and 74%, indicating SAP's focus on fostering a motivated workforce to drive this empowerment.

Global Reach and Local Impact

With a presence in over 180 countries, SAP's vision encompasses a global reach with a local impact. The company reported a current cloud backlog of €15.38 billion, reflecting its ability to serve diverse markets while focusing on localized solutions. This approach ensures that SAP remains relevant and responsive to the unique needs of various regions.

Conclusion

In summary, SAP's vision statement for 2024 encapsulates its commitment to innovation, sustainability, and empowering businesses globally. The financial metrics reflect the company's growth trajectory and its strategic focus on delivering value to customers while addressing pressing global challenges.

Core Values of SAP SE (SAP)

Customer Success

Customer success is a core value at SAP SE, emphasizing the importance of delivering exceptional service and solutions that ensure customers achieve their desired outcomes. In 2024, SAP has demonstrated its commitment to this value by achieving a Customer Net Promoter Score of 9 to 13, indicating high customer satisfaction and loyalty.

To further enhance customer success, SAP has invested significantly in its cloud offerings, which generated €12.43 billion in cloud revenue for Q1-Q3 2024, reflecting a 25% year-over-year increase. This growth is driven by the strong demand for SAP's Cloud ERP Suite, which alone saw a 34% increase in revenue.

Innovation

Innovation is central to SAP's mission to help businesses run better. The company has prioritized investment in research and development, allocating €4.84 billion in the first nine months of 2024, a 4% increase from the previous year. This commitment to innovation is evident in SAP's focus on business AI, which is a key strategic growth area.

Moreover, SAP's acquisition of WalkMe is expected to enhance its digital adoption platform, further driving innovation in customer engagement and operational efficiency.

Diversity and Inclusion

Diversity and inclusion are fundamental to SAP's workplace culture. As of Q3 2024, women held 30% of executive roles, indicating progress towards SAP's target of 25% by the end of 2027. SAP has also implemented various initiatives aimed at increasing gender diversity across all levels of the organization.

Furthermore, SAP's employee retention rate remains high at 93.8%, reflecting a supportive and inclusive work environment.

Sustainability

Sustainability is a core value that SAP integrates into its business practices. The company aims to achieve net-zero carbon emissions by 2030 and has reported a steady decrease in greenhouse gas emissions across its value chain. In 2024, SAP's gross greenhouse gas emissions totaled 6.9 million tons CO2 equivalents.

To demonstrate its commitment, SAP has implemented initiatives to reduce carbon emissions and increase the use of renewable energy sources in its operations.

Integrity

Integrity is at the heart of SAP's operations, guiding its interactions with customers, employees, and stakeholders. The company adheres to strict ethical standards and compliance regulations, reflected in its effective tax rate of 33.0% for Q3 2024.

Furthermore, SAP has established a comprehensive framework for regulatory compliance, ensuring transparency and accountability in its business practices.

Article updated on 8 Nov 2024

Resources:

• SAP SE (SAP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SAP SE (SAP)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View SAP SE (SAP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.