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1、 SAP Integrated Report 2022 SAP Integrated Report 2022 2/335 Contents About This Report.4 To Our Stakeholders 6 Letter from the CEO.7 SAP Executive Board.10 Investor Relations.12 Report by the Supervisory Board.17 Responsibility Statement.30 Independent Auditors Report.31 Independent Assurance Pract
2、itioners Report.41 Assurance Report of the Independent Auditor regarding Sustainability Information.44 Combined Group Management Report 48 General Information About This Management Report.49 Strategy and Business Model.51 Performance Management System.60 Financial Performance:Review and Analysis.69
3、Non-Financial Statement Including Information on Sustainable Activities.94 Security,Data Protection,and Privacy.102 Employees.106 Energy and Emissions.113 Corporate Governance Fundamentals.119 Business Conduct.122 Human Rights.126 Risk Management and Risks.129 Expected Developments and Opportunities
4、.146 Consolidated Financial Statements IFRS 156 Notes .163 Section A Customers.168 Section B Employees.177 Section C Financial Results.190 Section D Invested Capital.200 Section E Capital Structure,Financing,and Liquidity.218 Section F Management of Financial Risk Factors.226 SAP Integrated Report 2
5、022 3/335 Section G Other Disclosures.246 Managements Annual Report on Internal Control over Financial Reporting in the Consolidated Financial Statements.270 Further Information about Sustainability 271 About This Further Information on Economic,Environmental,and Social Performance.272 Sustainabilit
6、y Management.273 Stakeholder Engagement.275 Materiality.277 Why Holistic Steering and Reporting Matters.279 Social Investments.282 Sustainable Procurement.285 Waste and Water.288 Public Policy.291 Memberships,Partnerships,and Commitments.292 Non-Financial Notes:Environmental Performance.294 Our Cont
7、ribution to the UN Sustainable Development Goals.304 GRI Content Index.309 Stakeholder Capitalism Metrics.322 SASB Index.324 Task Force on Climate-Related Financial Disclosure(TCFD).325 Additional Information 326 Five-Year Summary.327 Financial Calendar and Addresses.331 Financial and Sustainability
8、 Publications.332 Publication Details.334 SAP Integrated Report 2022 4/335 About This Report Content The SAP Integrated Report 2022 presents our annual financial,social,and environmental performance in one integrated report(“SAP Integrated Report”)available at .We report on our contribution to the U
9、N Sustainable Development Goals(SDGs)and embedded the recommended disclosures of the Task Force on Climate-Related Financial Disclosures(TCFD),of the SASB standards,and of the World Economic Forum(WEF)stakeholder capitalism metrics.Basis of Presentation Our combined management report is prepared in
10、accordance with the German Commercial Code and the relevant German Accounting Standards.The combined management report is also a management commentary complying with the International Financial Reporting Standards(IFRS)Practice Statement Management Commentary.The report encompasses SAP SE and all su
11、bsidiaries which we control and,hence,include in our consolidated financial statement according to IFRS.Joint arrangements and associates are not included in the sustainability reporting.Any further deviations for the sustainability reporting are specifically mentioned in the respective chapters.Our
12、 executive management has confirmed the effectiveness of our internal controls over financial reporting.The social and environmental data and information included in the SAP Integrated Report is prepared in accordance with the GRI Standards.This indicates that a report contains a comprehensive pictu
13、re of its material topics and related impacts,and how these are managed.We apply the GRI principles(sustainability context,stakeholder inclusiveness,materiality,and completeness)for defining report content.We also report on SDGs identified as material to our strategy.Greenhouse gas data is prepared
14、based on the Greenhouse Gas Protocol.Data All financial and non-financial data and information for the reporting period is reported utilizing SAP software solutions and sourced from the responsible business units.The reporting period is fiscal year 2022.The report encompasses SAP SE and all subsidia
15、ries of the SAP Group.To make this report as current as possible,we have included relevant information available up to the auditors opinion dated February 22,2023.The report is available in English and German.Independent Audit and Assurance KPMG AG Wirtschaftsprfungsgesellschaft has audited our cons
16、olidated financial statements and our combined management report.Information relating to the non-financial statement included in SAPs management report has been audited with limited assurance by KPMG.Additionally,KPMG has provided assurance on selected sustainability information in accordance with t
17、he International Standard on Assurance Engagements(ISAE)3000,a pertinent standard for the assurance of sustainability reporting.The Independent Auditors Report and the Assurance Reports of KPMG for the non-financial statement and selected sustainability information are available in the Independent A
18、uditors Report section,the Independent Assurance Practitioners Report and the Assurance Report of the Independent Auditor regarding Sustainability Information section.SAP Integrated Report 2022 5/335 Concept and Realization This report was designed by SAP and created with SAP S/4HANA software and th
19、e SAP Disclosure Management application.SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 6/335 To Our Stakeholders Letter from the CEO 7 SAP Executive Board 10 Investor
20、Relations 12 Report by the Supervisory Board 17 Responsibility Statement 30 Independent Auditors Report 31 Independent Assurance Practitioners Report 41 Assurance Report of the Independent Auditor regarding Sustainability Information 44 SAP Integrated Report 2022 To Our Stakeholders Combined Group M
21、anagement Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 7/335 Letter from the CEO Dear Fellow Shareholders,Its hard to summarize the year 2022 in a few words as the pandemic continued,the world also faced new and unexpected challenges,such
22、 as the terrible war in Ukraine,that hugely impacted all of our lives.We have faced conflicts and geopolitical tensions,climate change,the energy crisis,inflation,and volatile markets.Yet,once again,we have seen solidarity in times of crisis people coming together to provide support to those in need
23、 when it mattered most.Despite the ongoing uncertainties in the world,SAP has remained in a strong position.2022 marked the 50th anniversary of SAP,which we celebrated together with our customers,partners,and colleagues across the world.Five decades ago,our founders set out to redefine business soft
24、ware and in doing so,forever changed the way the world runs.Their innovative thinking,pioneering spirit,and drive laid the foundation for the rise of SAP and they are still the basis for our success today,as we are carrying their legacy forward to drive positive change for our planet and its people
25、something that has never been more relevant or important than today.Our hearts remain with the people impacted by the war in Ukraine.As announced,SAP has stopped all sales in Russia and Belarus,and we are in the process of a total withdrawal from these markets.For 2023,while business wind-down conti
26、nues,our focus is on further reducing the remaining SAP footprint in Russia.We hope for the swift restoration of peace and will continue to help those affected by this war.SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further I
27、nformation on Sustainability Additional Information 8/335 The last year was a stark reminder that no one business,government,or society can tackle the greatest challenges of our time alone.For that,a change is needed,and technology plays a key role in finding solutions to our global challenges.Over
28、two years ago,we embarked on our transformation journey to move SAP towards a cloud company.This,together with our vision to enable every organization and every industry to become a network of intelligent,sustainable enterprises,is perfectly aligned with the challenges our customers face.From increa
29、sing speed and agility,building transparent and resilient supply chains,and recording,reporting,and acting on sustainability,our solutions provide the value our customers need:With RISE with SAP,we enable organizations to become agile,intelligent enterprises.With the SAP Business Network,we connect
30、millions of companies,allowing organizations to benefit from connected networks.With our SAP sustainability solutions,we enable organizations to truly operate sustainably.Looking at our financial numbers,we met all of our outlook metrics in 2022.Our strong full-year 2022 results at a glance:Cloud re
31、venue continued to be our main growth driver,increasing by 24%1.Current cloud backlog increased by 24%1.Total revenue grew 5%1.IFRS Operating profit was flat,while non-IFRS operating profit decreased by 7%1.Free cash flow was 4.35 billion.2022 was a volatile year on the market,with technology stocks
32、 particularly hard hit.Our shares were not immune from this overall trend.Our share price decreased 22.8%in 2022,below the DAX,which lost 12.4%,but better than the NASDAQ 100,which decreased 33%over the course of the year.We want our shareholders to participate in our success.Therefore,we have propo
33、sed an annual dividend of 2.05 per share2,an increase of approximately 5%over the prior years regular dividend.Customer Net Promoter Score(NPS)decreased 7 points year over year to 3 in 2022,hitting the lower end of the revised outlook range.SAPs Employee Engagement Index decreased 3 percentage point
34、s to 80%,a continued high level of engagement at the low end of the revised outlook range.The software as a service-industry scores overall have declined over the past few years of the pandemic.SAP continues to get feedback about needed improvements around pricing increases,licensing structure,produ
35、ct-related topics,support,service and stability of account team relationships.This type of transparent feedback and accountability helps provide us with the information to better focus investments and further improve our customer relationships.SAPs retention rate was 92.3%(2021:92.8%).Further,the pr
36、oportion of women in management increased to 29.4%(2021:28.3%)and we also reached 35%of women in the workforce.Net carbon emissions continued to decrease,at 85 kilotons in 2022,down 25 kt year over year.In addition to driving our ESG goals internally,we also take our wider social and environmental r
37、esponsibility very seriously:In total,SAP donatedmore than 4.2 millionto support Ukraine in cooperation with organizations such as UNICEF,UNHCR,and the German Red Cross.This includes our employee donation campaign which became SAPs largest employee donation campaign to date.SAP extended its partners
38、hip with UNICEF through Generation Unlimited(GenU),focusing on employability.The partnership also supports SAP Educate to Employ,a new program educating 1 At constant currencies 2 Pending approval of Annual General Meeting of Shareholders SAP Integrated Report 2022 To Our Stakeholders Combined Group
39、 Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 9/335 youth in need on soft skills,foundational knowledge,and SAP skills to enable a pathway to a successful career in the SAP ecosystem.Together with partners,we launched the TRANS
40、FORM Support Hub offering virtual pro bono consulting opportunities worldwide,connecting SAP employees to social enterprises.Net-net:We believe that together with our customers,colleagues,and partners around the world,we can turn the worlds greatest challenges into opportunities for a prosperous and
41、 greener future.2022 was one of the most important years in our history.As we head into 2023,we are committed to further optimizing and improving our business.We are deepening our focus on delivering lifetime value to current and new customers in the cloud and on high-growth opportunities where SAP
42、can lead.Across SAP,we are laying the foundation for SAPs ongoing success,expanding our position as the#1 Enterprise Application company on the planet,powered by our leading platform.Finally,I want to express my deepest thanks for your continuous trust in SAP.I certainly look back on 2022 with pride
43、 and gratitude for the many ways SAPs teams around the world are making a difference.Im very much looking forward to 2023,and the great achievements our over 100,000 colleagues will continue to deliver as we pursue our vision to enable every organization and every industry to become a network of int
44、elligent,sustainable enterprises.Sincerely,Christian Klein CEO,SAP SESAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 10/335 SAP Executive Board Christian Klein Chief Ex
45、ecutive Officer(CEO)Joined SAP:1999 Appointed to the Executive Board:2018 Current Executive Board term expires:2025 Nationality:German Year of Birth:1980 Other board memberships:Supervisory Board,adidas AG,Herzogenaurach,Germany Sabine Bendiek Chief People&Operating Officer,Labor Relations Director
46、Joined SAP:2021 Appointed to the Executive Board:2021 Current Executive Board term expires:2023 Nationality:German Year of Birth:1966 Other board memberships:Executive Board,Bitkom e.V.,Berlin,Germany;Supervisory Board,Schaeffler AG,Herzogenaurach,Germany Luka Mucic Chief Financial Officer Joined SA
47、P:1996 Appointed to the Executive Board:2014 Current Executive Board term expires:2023 Nationality:German Year of Birth:1971 Other board memberships:Supervisory Board,HeidelbergCement AG,Heidelberg,Germany SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated F
48、inancial Statements IFRS Further Information on Sustainability Additional Information 11/335 Dr.-Ing.Juergen Mueller Chief Technology Officer Joined SAP:2013 Appointed to the Executive Board:2019 Current Executive Board term expires:2024 Nationality:German Year of Birth:1982 Scott Russell Customer S
49、uccess Joined SAP:2010 Appointed to the Executive Board:2021 Current Executive Board term expires:2024 Nationality:Australian Year of Birth:1973 Thomas Saueressig SAP Product Engineering Joined SAP:2004 Appointed to the Executive Board:2019 Current Executive Board term expires:2025 Nationality:Germa
50、n Year of Birth:1985 Other board memberships:Board of Directors,Nokia Corporation,Espoo,Finland Julia White Chief Marketing&Solutions Officer Joined SAP:2021 Appointed to the Executive Board:2021 Current Executive Board term expires:2024 Nationality:U.S.citizen Year of Birth:1973 SAP Integrated Repo
51、rt 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 12/335 Investor Relations Multiple Crises Dampen Markets After more than one and a half decades,the era of cheap money came to a faster and
52、 more drastic end in 2022 than originally planned.This was mainly attributable to Russias war in Ukraine with all its consequences for the world economy,notably in the form of sharply rising energy and commodity prices and unusually high inflation.Companies,national economies,and stock markets alike
53、 found themselves facing difficult adjustments and uncertainty.This was exacerbated by aggressive interest rate hikes by the worlds central banks that repeatedly triggered fears of recession and generally curbed appetite for risky investments such as equities.While this was particularly evident in p
54、reviously highly valued technology stocks,many other stock indices also suffered significant losses amid high volatility.In the end,however,SAP stock development diverged from the general negative trend for technology stocks thanks to the Companys strong performance.The SAP stock,with an annual decl
55、ine of 22.8%,finished the year higher than the NASDAQ 100(33.0%),which had its worst performance since the 2008 financial crisis.The DAX declined 12.4%for the year and stated its weakest performance since 2018.With a market capitalization of 118.5 billion at year end,SAP was once again the second mo
56、st valuable company on the DAX.SAP Stock Affected by Market Sentiment Having started the year at 124.90(1,see graphic below),the Xetra closing price on December 30,2021,SAP stock largely followed the global downward trend in the technology sector,marking its high for the year early on at 124.82(2).P
57、ublication of our annual results(3),could not reverse this trend,despite exceeding the forecast which had been raised several times,bringing instead a daily loss of 6%.The market had hoped for a better free cash flow projection for the year.Our subsequent announcement of a renewed dividend increase(
58、4)was lost on the weak overall market as well due to the outbreak of war in Ukraine.In March(5),investors reacted negatively to the news of SAP CFO Luka Mucics departure from the Company in 2023.Our first-quarter figures for 2022(6)later reaffirmed strong growth in our cloud business,yet SAP stock d
59、eclined 2.0%in response to investors criticizing the low profit margins related to our investment activity.Though it quickly recovered the ex-dividend markdown of 2.45 in May(7),SAP stock then suffered another setback at the end of June,losing 3.6%on the heels of a negative analyst report that saw p
60、otential demand risks in the software sector due to the manifold crises.Our half-year results published in July(8)showed strong growth in cloud key figures,once again underpinned our growth strategy.SAP stock nevertheless slipped 2.8%in a heterogenous market environment before eventually rebounding
61、the following day with an increase of 4.4%.Over the remainder of the quarter,SAP stock more or less mirrored the movement of the DAX.At the end of August,the appointment of Airbus CFO Dominik Asam(9)as future SAP CFO and successor to Luka Mucic lifted the share price slightly in a weak overall marke
62、t.This was followed by further dips and a yearly low(10)of 81.06 in September,but SAP stock rallied back to eventually close the gap to the benchmark indices.Among other things,it benefited from improved sentiment for the technology sector overall as well as for SAP shares.Continuing to display this
63、 relative strength through October,SAP shares gained further momentum at the end of the month following a positive analyst report and solid results for the third quarter(11),which set SAP stock further apart from the overall market.Surprisingly good U.S.inflation data stimulated the bull market in t
64、echnology stocks in November,pushing SAP stock past the 100 mark SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 13/335 for the first time since April.It reached an int
65、erim high of 107.68 before then realigning itself to the overall markets,albeit weighed down by a negative analyst report suggesting SAPs strict cost control could jeopardize the achievement of its medium-term targets.Then,in the middle of December,the central banks dashed nascent market hopes about
66、 interest rates,putting renewed pressure primarily on technology stocks again.SAP stock was not immune and lost all the ground it had gained vis-vis the DAX.The stock ultimately closed the year at 96.39(12),down 22.8%for 2022 overall.SAP Stock Versus Major Indices(December 31,2021 to December 30,202
67、2)1.December 30,2021 Closing price 124.90 7.May 19,2022 Ex dividend,2.45 per share 2.January 5,2022 Annual high 8.July 21,2022 Financial results Q2 2022 3.January 27,2022 Final results Q4/Full year 2021 9.August 31,2022 Dominik Asam named new CFO 4.February 24,2022 Dividend announcement 10.September
68、 23,2022 Annual low 2022 5.March 18,2022 CFO announcement 11.October 25,2022 Financial results Q3 2022 6.April 22,2022 Financial results Q1 2022 12.December 30,2022 Closing price 96.39 Continuous Engagement with the Investment Community SAP continued its engagement with the investment community in 2
69、022.Throughout the year,members of the Executive Board of SAP SE and the Investor Relations(IR)team discussed our latest strategy,its execution and business development,and how SAP was helping customers meet the many challenges faced by companies today,with institutional investors,analysts,and priva
70、te investors worldwide.The IR team,together with senior management,held more than 230 meetings in 2022 to maintain the dialogue with investors and analysts,including one-on-one phone calls,video conferences,and road shows.Members of the Executive Board and the IR team significantly increased its pre
71、sence at conferences,attending more than 25 conferences across an expanded geographical mix.In May,we hosted the Financial Analyst Conference as a part of our Sapphire event in Orlando,Florida,USA.Once again,SAP held the 2022 Annual General Meeting of Shareholders(AGM)virtually without physical pres
72、ence.SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 14/335 We continued our dialogue with investors focusing on environmental,social and governance(ESG)topics,providin
73、g them with insights into our sustainability policies and products.SAPs leadership in this area has been recognized by leading sustainability rating organizations.SAP representatives engaged with retail shareholders at virtual events.The IR team and the Treasury team also maintained regular communic
74、ation with the debt investor community.We provide a wide range of information online about SAP and its shares.Our communications channels include our Twitter feed sapinvestor and the quarterly SAP INVESTOR magazine.Shareholders can reach the IR team directly by telephone hotline and by e-mail at .We
75、 also publish an overview of the latest analyst consensus on the Investor Relations Web site.In addition,we provide a Webcast for all key investor events at which members of our Executive Board speak,and we post all relevant presentations on the Investor Relations Web site.Key Facts About SAP Stock/
76、SAP ADRs Listings Germany Berlin,Frankfurt,Stuttgart United States(ADRs)New York Stock Exchange IDs and symbols WKN/ISIN 716460/DE0007164600 NYSE(ADRs)803054204(CUSIP)Reuters SAPG.F or.DE Bloomberg SAP GR Weight(%)in indexes as at 12/31/20221 DAX 40 8.47 Prime All Share 6.95 CDAX 8.28 HDAX 7.38 TecD
77、ax 9.81 Dow Jones STOXX 50 2.17 Dow Jones EURO STOXX 50 3.48 1 Source:Socit Gnrale Return on SAP Common Stock WKN 716460/ISIN DE007164600 Percent,unless otherwise stated Initial investment 10,000 Date of investment 12/31/2012 12/31/2017 12/31/2021 Period of investment 10 years 5 years 1 year Value a
78、s at 12/31/20221(in)15,882 10,315 7,717 Average annual return 4.7 0.6 22.8 Performance comparators DAX 40 Performance total return index 6.2 1.5 12.3 NASDAQ100 index 15.2 11.3 33.0 REX General Bond total return index 0.7 1.5 12.8 S&P 500 Composite total return index 12.7 10.0 14.4 S&P North American
79、 Technology Software Index 17.8 13.4 31.8 1Source:Bloomberg SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 15/335 Return on SAP ADRs 803054204(CUSIP)Percent,unless oth
80、erwise stated Initial investment US$10,000 Date of investment 12/31/2012 12/31/2017 12/31/2021 Period of investment 10 years 5 years 1 year Value at 12/31/20221(in US$)12,838 9,184 7,365 Average annual return 2.5 1.7 26.4 Performance comparators S&P 500 Composite total return index 10.4 7.5 19.4 NAS
81、DAQ100 index 15.2 11.3 33.0 1 Source:Bloomberg Dividend of 2.05 Proposed It is our policy to pay a dividend totaling 40%or more of IFRS profit after tax.At the Annual General Meeting of Shareholders,the Executive Board and the Supervisory Board of SAP SE will recommend a total dividend for fiscal ye
82、ar 2022 of 2.05(2021:2.45).Note the prior year dividend included a special dividend of 0.50 to celebrate SAPs 50th anniversary.Excluding the special dividend,the dividend increase is 5%.The payout ratio would be 140%(2021:53%,excluding special dividend 43%).Capital Stock Unchanged SAPs capital stock
83、 as at December 31,2022,was 1,228,504,232(2020:1,228,504,232).It is issued as 1,228,504,232 no-par shares,each with an attribute value of 1 in relation to capital stock.0,701,950,400,500,150,200,280,360,460,50 0,50 0,500,601,100,851,001,101,151,251,401,501,581,852,452,052002 2003 2004 2005 2006 2007
84、 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 16/335 Shareholder Structure Applying the def
85、inition accepted on the Frankfurt Stock Exchange,which excludes treasury stock from the free float,as at December 31,2022,the free float stood at 83.3%(December 31,2021:85%).The decrease in free float is due to an increase in treasury shares as a result of the recent share buyback programs.*43%of in
86、stitutional investors are classified as ESG investors.SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 17/335 Report by the Supervisory Board Dear Shareholders,In the fo
87、llowing,we would like to inform you about the work of the Supervisory Board in the fiscal year 2022.Collaboration Between the Supervisory Board and the Executive Board In the past fiscal year,the Supervisory Board of SAP SE discharged the duties imposed on it by the law and by the Companys Articles
88、of Incorporation.It advised the Executive Board on an ongoing basis with regard to the running of the Company and it scrutinized and monitored the work of management.The Supervisory Board received regular,full,and timely reports from the Executive Board,both from members in person and in written doc
89、uments.The Supervisory Board was also in regular exchange with senior internal officers through its various committees.This ensured that we were always up to date,even between meetings,on the Companys strategy,planning,business performance,risks,risk management,compliance(in other words,adherence to
90、 laws,to the Companys Articles of Incorporation,and to internal policies),and on transactions of special significance for SAP.In its reports,the Executive Board also informed us in particular where business deviated from plan or target,and why.We questioned and probed the Executive Boards reports to
91、 satisfy ourselves that the information it gave us was plausible.The Executive Board fully met our requirements when it came to providing information.In addition,the Supervisory Board chairperson and the CEO were in continuous contact,which meant the Supervisory Board chairperson was always apprised
92、 without delay of all important events that were significant for assessing SAPs situation and progress or for the management and governance of the Company.Moreover,the chairperson of the Supervisory Board and the CEO regularly discussed matters related to SAPs strategy,business performance,risk posi
93、tion,risk management,and compliance.All management transactions requiring approval by the Supervisory Board whether by law,the Articles of Incorporation,or the Supervisory Boards list of transactions requiring its consent were presented to us in the proper manner and we carefully examined and discus
94、sed same with the Executive Board prior to approval.Supervisory Board Meetings and Resolutions In the past fiscal year,the Supervisory Board of SAP SE held four ordinary meetings and three extraordinary meetings at which we deliberated and resolved on all matters of relevance to the Company.Due to t
95、he ongoing contact restrictions and other safety measures imposed on us as a result of the COVID-19 pandemic,we continued to partly conduct our plenary meetings and Committee meetings,which are normally held as physical meetings,in 2022 as video conferences or as hybrid sessions,where some members a
96、ttended physically and the remainder online.We also adopted nine resolutions by correspondence vote.The following table provides an overview of the individual members attendance at the Supervisory Boards plenary sessions and committee meetings in the year under review.This report also contains a tab
97、le that shows which meetings of the Supervisory Board and its committees were held as a physical meeting,as a video or telephone conference,or as a hybrid session.SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Informatio
98、n on Sustainability Additional Information 18/335 Meeting Participation of SAP SE Supervisory Board Members During Fiscal Year 2022 Plenum Committees All Meetings Supervisory Board Members Meetings Participation Meetings Participation Meetings Participation Participation in%Prof.Dr.h.c.Hasso Plattne
99、r(Chairperson)7 7 14 12 21 19 90%Lars Lamad(Deputy Chairperson)7 7 14 14 21 21 100%Manuela Asche-Holstein 7 6 11 11 18 17 94%Aicha Evans 7 6 14 13 21 19 90%Prof.Dr.Gesche Joost 7 7 10 10 17 17 100%Margret Klein-Magar 7 6 20 20 27 26 96%Monika Kovachka-Dimitrova 7 7 14 14 21 21 100%Peter Lengler 7 7
100、18 18 25 25 100%Jennifer Xin-Zhe Li(from 5/18/2022)2 2 11 11 13 13 100%Bernard Liautaud(until 5/18/2022)5 3 6 4 11 7 64%Dr.Qi Lu 7 6 10 10 17 16 94%Gerhard Oswald 7 7 14 14 21 21 100%Christine Regitz 7 7 21 21 28 28 100%Dr.Friederike Rotsch 7 7 18 18 25 25 100%Heike Steck 7 7 21 21 28 28 100%Helmut
101、Stengele1 7 7 n/a n/a 7 7 100%Dr.Rouven Westphal 7 7 23 23 30 30 100%Gunnar Wiedenfels 7 6 21 19 28 25 89%James Wright 7 7 25 25 32 32 100%1 Currently not a member of any Supervisory Board committee The Supervisory Board and its committees also regularly convened wholly or partly without the Executi
102、ve Board as necessary to deliberate on matters that pertained to the Executive Board,required internal discussion among Supervisory Board members alone or did not require the Executive Boards presence,or to facilitate discussion between the Supervisory Board or its respective committee and the audit
103、or without the Executive Board present.This was the case in two of the plenary sessions and in six committee meetings in 2022.In addition,the shareholder representatives and the employee representatives independently discussed individual agenda items as required prior to the adoption of resolutions
104、in plenary sessions.The Supervisory Board addressed the following key topics during the year:Russias War Against Ukraine Like the rest of the world,SAPs Supervisory Board members were shocked,shaken,and dismayed by the events that unfolded in Ukraine in 2022.The Executive Board and Supervisory Board
105、 have liaised closely from the outset to discuss the impact of the war on SAP employees in Ukraine and on business activities there,as well as the implementation of sanctions.At the beginning of the war,the Supervisory Board was updated weekly on the latest developments.Though SAP implemented all sa
106、nctions levied against Russia,and additionally stopped all sales in Russia and Belarus effective March 2,2022,it was still criticized publicly by the Ukrainian government.The Supervisory Board therefore held an extraordinary meeting on March 25,2022,at which the CEO updated us on his talks with Germ
107、an and other European government representatives and the Deputy Prime Minister of Ukraine concerning this matter.In addition,the Executive Board explained to us the measures SAP had taken toward an exit of operations in Russia and the options available for the way ahead.SAP Integrated Report 2022 To
108、 Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 19/335 Numerous Supervisory Board committees focused on this topic as well:at the People and Culture Committees meeting at the end of March 2022,the
109、Executive Board member responsible for HR matters reported on the status of SAPs exit from Russia and how the Company was supporting affected employees and their families in Ukraine.The Audit and Compliance Committee discussed the risks that Russias war against Ukraine posed for SAP.The exit process
110、 initiated by the Executive Board had to be continually adapted to the ever-stricter sanctions and Russias corresponding countermeasures.In each of our ordinary meetings in April,July,and October,we had the opportunity to review the implementation of the Executive Boards chosen strategy for an order
111、ly exit and to support the Executive Board in its efforts.The Go-To-Market and Operations Committee likewise examined the exit approach in its April meeting and thereafter reported on its deliberations to the full Supervisory Board.When implementing the exit measures,SAP had to observe complex legal
112、 requirements,particularly when it came to the termination of customer and employee contracts.In the October meeting,we were informed that SAPs exit from Russia would be largely but not fully completed by the end of the year.Corporate Governance The Supervisory Board and its Personnel and Governance
113、 Committee dealt in-depth with corporate governance topics in the reporting year.The Supervisory Board chairperson held discussions with investors as early as the beginning of March 2022 on the topics of strategy and corporate governance.The Supervisory Boards focus was on efforts to take account of
114、 the views of our institutional investors concerning the independence of the Supervisory Board chairperson,and to comply with the new recommendations of the updated German Corporate Governance Code(“GCGC”),which came into effect on April 28,2022.When the Personnel and Governance Committee met on Feb
115、ruary 9,2022,in preparation for the Annual General Meeting of Shareholders on May 18,2022,and the proposed reelection there of the Supervisory Board chairperson for his last term in office,it deliberated on the creation of a Lead Independent Director(“LID”)role on the Supervisory Board.The Superviso
116、ry Board subsequently approved the creation of this role in its meeting on February 23,2022,and Friederike Rotsch was appointed SAPs LID effective May 18,2022.While the role of LID is still rather uncommon in Germany,the Supervisory Boards introduction of same further strengthens the independence of
117、 the SAP Supervisory Board.For more information about the role and powers of an LID,see the Corporate Governance section of SAPs Web site and the Corporate Governance Statement for 2023.One of the first activities of our new LID was a Corporate Governance Roadshow in September 2022 at which Friederi
118、ke Rotsch met with 17 SAP investors and members of a shareholder association to talk about governance and supervisory board-related topics and share ideas for reworking executive board compensation systems.She reported on the results of this Roadshow to the Supervisory Board in October.As a further
119、measure to strengthen its independence the Supervisory Board chair having previously also stepped down as chairperson of the Personnel and Governance Committee in 2021 a shareholder representative newly elected to the Nomination Committee was appointed chair of that Committee pursuant to a Superviso
120、ry Board resolution of February 23,2022.In its meeting on July 27,2022,the Personal and Governance Committee focused on the new GCGC recommendations and resolved to propose that the Supervisory Board introduce a“qualification matrix”for the Supervisory Board and amend the profile of skills and exper
121、tise by including expertise on sustainability.The Supervisory Board adopted this proposal by way of a circular correspondence vote in August 2022 in preparation for its October 27,2022,meeting,at which the Supervisory Board examined the new GCGC recommendations and SAPs implementation of them.Follow
122、ing this analysis,the Supervisory Board then adopted,in agreement with the Executive Board,the annual declaration of implementation of the GCGC.The Supervisory Board also dealt with the topic of independence at our October meeting under the agenda item Corporate Governance.Based on the findings from
123、 our own examination,we determined that all shareholder representatives were independent in the meaning of the GCGC and were therefore to be named as such in the Corporate Governance Statement.We also resolved on what we believe to be the appropriate number of independent shareholder representative
124、members,and determined that the Supervisory Board has an SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 20/335 appropriate number of independent members in the meaning
125、 of the GCGC,also when the shareholder structure is taken into account.In its ordinary meetings in April and July 2022,the Personnel and Governance Committee updated the list of transaction categories for which the Executive Board must obtain the Supervisory Boards prior consent.The Supervisory Boar
126、d then enacted the prepared changes by way of correspondence vote in August.The Supervisory Board at this time also decided to set itself the goal of always having at least two women on the Executive Board on a voluntary basis,over and above the statutory quota.In this connection,the diversity conce
127、pt for the Executive Board was adjusted accordingly.Sustainability Sustainability is becoming an increasingly important topic in many areas of business,including corporate governance.The current version of the GCGC published on April 28,2022,includes a recommendation that company management consider
128、 sustainability-related factors in their corporate planning.Sustainability is already deeply anchored in SAPs corporate strategy,and from the Supervisory Boards point of view,this is proving to be a great advantage for the Company.SAP achieves its sustainability objectives in two different ways:by e
129、nabling companies to pursue their own sustainability strategies by way of SAP products,and by leading by example and striving for sustainability in all of its own business operations.In 2022,the Supervisory Board devoted considerable time discussing SAPs sustainability objectives and the increased d
130、emands placed on sustainability-related tasks.In addition,ESG(Environmental,Social and Governance)issues were addressed by various committees from different perspectives:By the Audit and Compliance Committee notably in connection with sustainability reporting,the audit of sustainability metrics,and
131、the monitoring of cybersecurity matters;by the Personnel and Governance Committee in the context of sustainability targets relevant to Executive Board compensation;by the Technology and Strategy Committee with respect to sustainability-related products and software as well as IT security;and by the
132、People and Culture Committee in addressing sustainability as it relates to social issues.Given this range of sustainable corporate management at SAP,which provides for coverage of all areas by several committees,the Supervisory Board has waived the need to set up a committee dedicated purely to ESG
133、or sustainability matters.The Supervisory Board likewise dealt with SAPs sustainability strategy and consulted the Executive Board on their goals,targets,and implementation.To this end,in our meeting on October 27,an external expert expounded the growing significance of sustainability in the corpora
134、te world and outlined the tasks of a supervisory board in this regard.Following this report,SAPs Chief Sustainability Officer explained the two elements of SAPs sustainability strategy to us,namely:to lead by good example and strive to avoid waste and emissions as much as possible while at the same
135、time enable other companies to pursue their own sustainability strategies with the help of SAP technologies.We were also updated on SAPs current lineup of sustainability products at this meeting.In December 2022,the members of the Supervisory Board had the opportunity to further deepen their sustain
136、ability know-how in the course described later in this report(see the“Training and Professional Development”section below).Executive Board Compensation In the course of our regular deliberations on Executive Board compensation and our continuous review of the current compensation system,we came to t
137、he conclusion that there is a need to further develop the compensation system.In fiscal 2022,we therefore worked intensively on revising the Executive Board compensation system,which is to be submitted to the Annual General Meeting in May 2023 for approval and take effect at the beginning of fiscal
138、2024.We did so in close collaboration with an independent consultant on compensation,taking special account of external feedback from investors in our deliberations.The groundwork for this new system was carried out by the Personnel and Governance Committee,which dealt extensively with this topic in
139、 all of its four ordinary meetings and developed the principles of the new compensation system together with the independent consultant on compensation and further experts both internal and external.The Committee reported regularly to the plenum on the status of the project and consulted with the fu
140、ll Supervisory Board on fundamental issues.In addition,the Committee chair,in her capacity as LID,gathered feedback on SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 2
141、1/335 specific structural considerations for the new system from the investors she met at the Corporate Governance Roadshow in September.The Supervisory Board and its Personnel and Governance Committee then took this feedback into account in their decision-making and development of the new compensat
142、ion system.At its meeting in October,the Supervisory Board discussed at length the new compensation concept as presented to us,comparing its parameters with those customary in executive board compensation in Germany and elsewhere.Concluding the discussion,we approved the proposed concept,based on wh
143、ich a detailed compensation system was then drafted.The plenum subsequently approved the detailed draft by correspondence vote in December 2022 on the recommendation of the Personnel and Governance Committee.At our ordinary Supervisory Board meeting on February 20,2022,we adopted the resolutions req
144、uired under the current Executive Board compensation package for fiscal 2021 and 2022.We first determined performance against the defined target for the short-term incentive(STI)2021,and then set the performance targets for the STI 2022.In addition,we resolved the individual allocation amount for th
145、e 2022 tranche of the long-term incentive 2020(LTI 2020).Finally,we evaluated the appropriateness of the Executive Board members compensation for 2022,and in each case found it to be appropriate in terms of amount,structure,objective criteria,and reasonable and appropriate in relation to the Company
146、s circumstances,including its profit and outlook.We referred in this regard to a certificate obtained beforehand from an independent compensation consultant.For more information about the STI 2021 and 2022,the LTI 2020,and the other elements of the Executive Board compensation,see the Compensation R
147、eport.Other key topics addressed at our meetings in 2022 notably included the following:Extraordinary Meeting in February At our extraordinary meeting on February 5,2022,we dealt with SAPs communication with the financial markets.We were concerned about the negative market reactions to our quarterly
148、 results of late and therefore discussed the reasons for such reaction as well as future changes to SAPs financial market communication.Meeting in February(Meeting to Discuss the Financial Statements)In the plenary session on February 23,2022,we received an Executive Board report on business in 2021
149、 and adopted the budget for 2022 after discussing same extensively with the Executive Board.In addition,we turned our attention to the SAP SE financial statements and the consolidated financial statements for 2021 The Supervisory Board approved the audit and gave its consent to the financial stateme
150、nts and the consolidated financial statements for 2021 as well as the compensation system as presented to us.We endorsed the Executive Boards proposal concerning the appropriation of retained earnings for 2021,in accordance with the Audit and Compliance Committees recommendation to us,and subsequent
151、ly passed the proposed resolutions for the SAP SE Annual General Meeting of Shareholders on May 18,2022.In particular,this included approving the proposal to the Annual General Meeting concerning the election of an auditor for 2022 and 2023 taking the upcoming change in auditor into account,and the
152、adjustment of Supervisory Board compensation.The decision on the recommendation regarding the election of the auditors was preceded by a review by the Audit and Compliance Committee of the proposed auditors independence,qualifications,and quality of work.In addition,the Executive Board gave us an ov
153、erview of the Companys equity investments in 2021 and SAPs donation activities.Extraordinary Meeting in March On March 18,2022,we agreed with Luka Mucic to end his Executive Board appointment contract prematurely with effect from March 31,2023.Meeting in April The focus of our meeting on April 14,20
154、22,was SAPs profitability in its various areas of operation,the forecast operating margin,and planned investments.SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 22/335
155、 Meeting in July When we met on July 29,2022,the Executive Board reported on the significant developments in the second quarter and gave an account of the current difficult macroeconomic situation.We also consulted with the Executive Board on the status of important projects with respect to specific
156、 products and improving SAPs performance.An ongoing cross-Company portfolio check had revealed that SAPs Litmos business,an established learning and education platform,partially overlapped some of SAPs other offerings.We therefore approved,on recommendation of the Finance and Investment Committee,th
157、e proposed sale of the Litmos business to Francisco Partners,a tech-sector investor based in the United States.The Executive Board then outlined its strategy for collaborating with the venture capital firm Sapphire Ventures in relation to the SAP-financed Sapphire Ventures funds,and explained the si
158、gnificance of these investment funds for the Companys development.On recommendation for the Finance and Investment Committee,which had looked in-depth at SAPs venture capital investment activities,we consented to the establishment of a new Sapphire Ventures Fund VII of US$1.25 billion and approved a
159、 fund-of-funds investment of US$100 million for the Sapphire Ventures Fund IV.In addition,we increased the size of the Audit and Compliance Committee from six to eight members effective August 1,2022,and to that end elected two further Committee members.Meeting in October At our meeting on October 2
160、7,2022,the Executive Board first reported on business performance in the third quarter.It also submitted the analysis requested by us of the performance of SAP S/4HANA Cloud,public edition,and explained its plans for expanding the Companys marketing strategy and sales activities for this area.Resolu
161、tions by Correspondence Vote We adopted,besides the above resolutions,a number of resolutions by correspondence which the relevant Committees had deliberated on in advance and recommended to us,as follows:January:Approval of the appointment of regional presidents for the EMEA South(Europe,Middle Eas
162、t,and Africa)and MEE(Middle and Eastern Europe)regions.Also in January,we consented to the acquisition of SAPs long-time partner Taulia,headquartered in San Francisco,USA.February:Approval of the Corporate Governance Statement for 2022.April:Resolution on managements response to a countermotion rega
163、rding an item on the agenda of the Annual General Meeting on May 18,2022.May:Resolution on the appropriation of retained earnings as amended,and resolution to change the composition of the Supervisory Board committees at the conclusion of the 2022 Annual General Meeting of Shareholders.July:Approval
164、 of SAPs planned share buy-back program of up to 500 million.August:Resolution on the appointment of Dominik Asam as new Chief Financial Officer(CFO)effective March 7,2023.December:Resolution on adjustments to the Executive Board members portfolios effective January 1,2023,necessitated by the depart
165、ure of SAPs current CFO,Luka Mucic at the end of March 2023 and the assumption of his portfolio by his successor,Dominik Asam.SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Inform
166、ation 23/335 Format of Meetings in Fiscal 2022 Plenary Committees Personnel and Governance Audit and Compliance Technology and Strategy Nomination People and Culture Finance and Investment Go-To-Market and Operations Total number of meetings 7 4 11 6 4 5 11 4 Thereof physical meeting 0 0 21 11 0 0 0
167、 0 Thereof hybrid session 4 3 92 53 2 0 102,3 4 Thereof telephone/video conference 3 1 0 0 2 5 1 0 1 Thereof one joint meeting between the Technology and Strategy Committee and the Audit and Compliance Committee 2 Thereof two joint meetings between the Finance and Investment Committee and the Audit
168、and Compliance Committee 3 Thereof one joint meeting between the Finance and Investment Committee and the Technology and Strategy Committee The Work of the Supervisory Board Committees The committees made a key contribution to the work of the Supervisory Board in 2022,notably by preparing relevant a
169、genda items and resolutions for Supervisory Board meetings and by regularly reporting on their deliberations in general and on their decisions taken.The following committees were in place in the year under review:Personnel and Governance Committee,Audit and Compliance Committee,Finance and Investmen
170、t Committee,Technology and Strategy Committee,People and Culture Committee,Nomination Committee,Go-To-Market and Operations Committee Each of the aforementioned committees was active in 2022.For more information about the Supervisory Board committees,particularly their respective composition,tasks,a
171、nd responsibilities,see the Corporate Governance Statement and the Corporate Governance section of SAPs Web site.Besides the matters described above,the committees focused primarily on the following topics in 2022:The Personnel and Governance Committee held four regular meetings in the reporting yea
172、r.In particular,the Committee,in fulfillment of the tasks assigned to it,extensively prepared and discussed in advance the deliberations of the Supervisory Board and its resolutions on the new Executive Board compensation system.It also approved two loans for officers of SAP who hold procura powers.
173、At its meeting in February,it did preparatory work on the Supervisory Boards proposal to the 2022 Annual General Meeting of Shareholders with respect to the adjustment of Supervisory Board compensation.It also deliberated on the draft Supervisory Board report for the financial year 2021,SAPs competi
174、tive position,and the Executive Boards customer relationship management(CRM)strategy.When the Committee met in April 2022,it reviewed the composition of the Supervisory Board committees that was envisaged after the Annual General Meeting of Shareholders on May 18,2022.On July 27,2022,the Committee c
175、onducted its regular review of pension payments made to former Executive Board members and deliberated on the creation of a formalized process for the feedback of the Supervisory Board vis-vis Executive Board members.In addition,it updated the target number of women on the Executive Board and the di
176、versity concept.It was resolved that SAP should voluntarily keep to its target of having two women on the Executive Board.The Committee additionally dealt,at both its April and July meetings,with the search for a successor to SAPs CFO Luka Mucic,who would be leaving the Company in March 2023.Even be
177、tween meetings,the Committee members were in continual contact with the SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 24/335 personnel consulting firm that had been e
178、nlisted for this purpose,and conducted interviews of potential candidates.The Committee chairperson reported on the status of the candidate search in the meetings of the full Supervisory Board.Finally,in August,the Committee initiated the proposed resolution by the full Supervisory Board on the appo
179、intment of the new CFO.The focus of the October 2022 meeting was once again the aforementioned feedback process and its implementation.In addition,the Committee deliberated on the process for cultivating and shortlisting internal talents who were considered potential successors to Executive Board po
180、sitions.The Audit and Compliance Committee held 11 regular meetings in 2022 two of which jointly with the Finance and Investment Committee and one jointly with the Technology and Strategy Committee.Said schedule included one short telephone conference per quarter to vote on the quarterly reporting,a
181、nd one session per quarter to address regular and topical agenda items.In its meetings,the Committee also had the opportunity to engage with the auditor without the Executive Board present,which was an integral part of the meeting agenda.The Committee comprehensively prepared the resolutions of the
182、Supervisory Board for all topics assigned to it,as described above.Regular agenda items included the course of business in the respective quarter,the accounting processes,the preparation of end-of-quarter closings,and the quarterly reports due for publication.In addition,the(new)Committee chairperso
183、n was in regular contact with the auditor.Other recurring meeting topics included the monitoring of SAPs risk management system,internal control system,and compliance system(including specific compliance issues,the status of corresponding SAP-internal investigations,and case-related collaboration wi
184、th authorities),and cybersecurity.In its February 2022 meeting,the Committee prepared the Supervisory Boards resolutions on the financial statements of SAP SE and the Group for 2021 in the run-up to the Annual General Meeting of Shareholders,which were adopted at the audit meeting.Other material top
185、ics dealt with by the Committee beyond the regular meeting topics in its ordinary meetings and those described in the“Sustainability”section of this report included quarter-specific matters and the compensation system for SAPs Sales organization.Further,the Committee monitored the progress of select
186、ed lawsuits involving SAP.The Audit and Compliance Committee also received regular updates on activities relating to the change in auditor for SAPs financial statements and consolidated financial statements,particularly progress reports on the onboarding of the new auditor.In addition,the Committee
187、continually monitored the quality of the current and future auditor and the management report.To this end in addition to evaluating satisfaction surveys for the previous years audit by the current auditor the Committee obtained and referred to regular reports from the auditor on its internal quality
188、 assurance standards and to any material findings from internal quality audits,external quality controls,and peer reviews,and from any investigations conducted by the government or regulators into the auditors audits.The Committee discussed the audit focus for 2022 with the auditor at its meeting in
189、 July.As reported in more detail below,the Committee also held two joint meetings with the Finance and Investment Committee in February and December 2022 to discuss the Group annual plan for 2022 and the preliminary Group annual plan for 2023.The joint meeting with the Technology and Strategy Commit
190、tee in July focused on the results of the assessment by NIST(National Institute of Standards and Technology,a department of the U.S.Department of Commerce)and the progress of certain internal audits.The auditor attended all Audit and Compliance Committee meetings except for the joint meetings with t
191、he Finance and Investment Committee and the Technology and Strategy Committee,and reported in depth on its audit work and on its quarterly reviews of selected software and cloud agreements.The Finance and Investment Committee held six regular meetings and five extraordinary meetings in 2022,and outs
192、ide these meetings it passed two resolutions by correspondence.It held a joint meeting with the Audit and Compliance Committee in February and again in December 2022,and a joint meeting with the Technology and Strategy Committee in December 2022 as described in more detail below.In an extraordinary
193、meeting in January 2022,the Committee approved the acquisition of a minority interest in Icertis,a contract lifecycle management specialist based in the United States.It also discussed the planned acquisition of Taulia,an American working capital management firm,at length and ultimately resolved to
194、recommend the acquisition to the Supervisory Board.In the joint meeting with the Audit and Compliance Committee in SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 25/33
195、5 February 2022,the members of both Committees discussed the annual budget for 2022 and voted in favor of recommending its approval to the Supervisory Board.At the Finance and Investment Committee meeting on the same day,the new head of the Investor Relations team introduced himself,provided an over
196、view of the core topics in his remit,and presented his strategic concept.When it met in April,the Committee and the Executive Board discussed selected investor relations and capital market topics,strategic business plans for various product areas,plans for future collaboration with SAP partners,and
197、potential divestments.The Executive Board also reported on the major investments planned and on its analysis of employee efficiency.During the Committees first meeting in July,it deliberated on the sale of the Litmos business as described above.At its second meeting in July,the Committee dealt with
198、Investor Relations matters and engaged in a detailed discussion about the efficiency of SAPs development organization.The Executive Board also presented its new strategy for investing in the venture capital sector in collaboration with the Sapphire Ventures team.After extensive consultation,the Comm
199、ittee resolved to recommend that the Supervisory Board approve the set-up of a new fund for direct investments totaling US$1.25 billion and a further venture capital fund for fund-of-funds investments totaling US$100 million.The Committee also resolved,by way of correspondence,to recommend the Super
200、visory Boards consent to a share buy-back program worth 500 million and approved the extension of existing bilateral bank loans.In the October meeting,the Executive Board updated the Committee on investor relations and treasury topics,explained its plans to streamline the portfolio,and presented its
201、 regular report on the success of the Companys recent acquisitions.Beyond this,the Committee and the Executive Board discussed management efficiency and competency,and examined process optimizations in the cloud.In addition,the Committee reviewed its own activities and the format of its meetings,wit
202、h a view to good corporate governance.At its two extraordinary meetings held on December 12 and 13,2022,the Committee was apprised of planned improvements to selected business areas and drafted a resolution to recommit funds previously dedicated in July 2022 for Sapphire Ventures fund-of funds activ
203、ities.In December 2022,the Committee held a second joint meeting with the Audit and Compliance Committee,at which the Executive Board presented the preliminary Group annual plan for 2023.This meeting was held in preparation for the Supervisory Board meeting in February 2023,at which the full Supervi
204、sory Board resolved to approve the Group annual plan for 2023.The Technology and Strategy Committee held six meetings in 2022,which included one joint meeting with the Audit and Compliance Committee and one joint meeting with the Finance and Investment Committee.The Committee discussed the outlook f
205、or key technology trends in the software industry in the years to come and SAPs corporate and product strategies.The Executive Board explained SAPs midmarket and customer experience strategies to the Committee members at its February meeting,where the two bodies also discussed the specific requireme
206、nts resulting from the rapid growth and expansion of medium-sized customers.In April,the Committee turned its attention to artificial intelligence and“data to value”the act of deriving business value from data placing particular focus on the integration of data sources in compliance with legal and r
207、egulatory requirements.In July 2022,the Executive Board updated the Committee on the strategic plans for process intelligence and automation and explained how SAP Signavio solutions would be used to expand SAPs opportunities in the business process optimization space.At the joint meeting with the Au
208、dit and Compliance Committee,also in July,the Committee was updated on progress in the areas of enterprise vulnerability management and asset management.When it met in October 2022,the Committee examined SAPs innovation strategy as regards business transformation,business network,and sustainability.
209、At their joint meeting in December,the Technology and Strategy Committee and the Finance and Investment Committee deliberated on the efficiency of SAPs development organization and were given an overview of SAPs current development processes and tools by the Executive Board.The People and Culture Co
210、mmittee met five times in the reporting year.The focus of its February meeting was on strategic personnel planning as relate to the“the future of work”concept and the evolution of skills.The Committee was presented in this regard with a detailed overview of the past and expected demographic developm
211、ent of the SAP SE workforce,and discussed the skills and SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 26/335 expertise the Company would require of employees in the
212、future.In addition,the global head of Diversity and Inclusion introduced herself to the Committee,following which the Committee looked at the career development of employees in expert functions and discussed the refining of SAPs leadership culture introduced the year before.Performance management wa
213、s a key topic of the July meeting,where an initiative to promote appreciation and respect at the Company was presented.The Committee then reviewed the progress made in this initiative and the feedback received from employees in this connection at its October meeting,where it also looked at investmen
214、ts in headcount and the compensation budgets for 2023.The Committee held an extraordinary meeting in November where it and the Executive Board looked in-depth at the talent development process the Company was pursuing in the SAP S/4HANA area.The two bodies addressed three specific aspects in this re
215、gard:improving the quality of the recruitment process,training and upskilling staff,and promoting the performance culture at SAP.The Nomination Committee met four times in 2022.In February 2022,it deliberated on proposed successors for the departing Supervisory Board member Bernard Liautaud.Followin
216、g corresponding interviews and careful evaluation of the competencies of all persons under consideration,it resolved the nomination of Jennifer Li as further candidate for election to the Supervisory Board by the Annual General Meeting on May 18,2022.The Committee came to the conclusion that Jennife
217、r Li had the best qualifications to succeed Bernard Liautaud and that her other mandates outside SAP would not prevent her from performing her duties as a member of the Supervisory Board and making valuable contributions to the work of the SAP Supervisory Board.The Committee also met on July 27,2022
218、,where it discussed succession planning on the Supervisory Board,particularly for the position of chairperson,and agreed that the search for suitable candidates should continue to be conducted both within SAP and outside the Company.As in the past,the Committee enlisted the help of a renowned person
219、nel consulting firm for this purpose.In its meeting on October 27,2022,the Committee members discussed the status of the candidate search and the initial results submitted to it by the consulting firm.At the Committees meeting in December,the personnel consultant presented a short list of candidates
220、,which the Committee discussed in depth before deliberating on the next steps in the search.The Go-To-Market and Operations Committee likewise met four times in the reporting year.At the February meeting,the Committee was informed of the cloud revenues generated in 2022 versus the year before,appris
221、ed of the current cloud backlog growth,and presented with the Executive Boards current strategy to accelerate growth in the cloud.In April,the Executive Board presented a new strategy for technology and sales that addressed how SAP would position its technologies in the market going forward and the
222、role SAP Business Technology Platform would play in this.In July,the Committee was updated on SAPs competitive situation and,based on this information,discussed with the Executive Board what strategic decisions would result from this.The two bodies then deliberated on how SAP cloud solutions could b
223、e run more efficiently in key strategic business areas.The October meeting focused on the transformation of the Cloud Success Services(CSS)area,which had been triggered at the beginning of 2021.The core of this transformation was the merger of various user departments into one CSS unit that supporte
224、d SAPs cloud portfolio.The Executive Board first explained how this measure was intended to ensure end-to-end customer relationships that focused on customer success and customer lifetime value.It then presented the Committee with the CSS targets and the Companys plans for expanding the organization
225、 further.The Committee also examined how SAPs partner ecosystem evolved with the shift to the cloud.The business update included a discussion about how SAP would react in the event of interruptions to its energy supply.The Executive Board explained to the Committee how SAP was currently protecting i
226、ts data centers and for which scenarios the Company was preparing itself,including in the case of hyperscalers and their server systems,which would likewise be affected by energy bottlenecks.The work of the committees and their regular reports to the full Supervisory Board ensured that we were kept
227、fully informed of all matters covered by the committees and were able to discuss them thoroughly.SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 27/335 Conflicts of Int
228、erest Members of the Supervisory Board and of the Executive Board had no conflicts of interest that recommendations E.1 and E.2 of the GCGC require to be disclosed to the Supervisory Board.Insofar as Supervisory Board members hold executive positions in companies or have material equity in companies
229、 that currently have business dealings with SAP,we do not see any impairment of their independence.The scope of these transactions is relatively small and,moreover,takes place at arms length.Training and Professional Development The members of the Supervisory Board were once again offered various tr
230、aining and professional development opportunities throughout the year,with appropriate support from the Company.On-boarding sessions and leaflets are available for new Supervisory Board members to familiarize themselves with their tasks and responsibilities when they assume office.Where it made sens
231、e,presentations and training offerings were recorded and placed on a specially configured training platform to enable the remaining Supervisory Board members to take part in them as well.The members of the Audit and Compliance Committee were invited to short seminars in April 2022 on“New EU reportin
232、g requirements for sustainability”(Corporate Sustainability Reporting Directive),and on the“OECD/G20 New World Tax Order for Digital Business”(a basic approach adopted by OECD/G20 to reform international business taxation).An external expert attending the Supervisory Boards meeting in October provid
233、ed a general overview of the importance of sustainability for companies and the expectation of investors where this was concerned.In December 2022,external experts held an information session for members of the Supervisory Board on the future legal framework in the area of ESG and its relevance for
234、the work of the Supervisory Board.SAP SE and Consolidated Financial Reports for 2022 KPMG AG Wirtschaftsprfungsgesellschaft,Berlin(KPMG)audited the SAP SE and consolidated financial reports for 2022.The Annual General Meeting of Shareholders elected KPMG as the SAP SE and SAP Group auditor on May 18
235、,2022.The Supervisory Board proposed the appointment of KPMG on the recommendation of the Audit and Compliance Committee.Prior to the proposed resolution being put to the Annual General Meeting of Shareholders,KPMG had confirmed to the chairperson of the Supervisory Board and the Audit and Complianc
236、e Committee that circumstances did not exist that might prejudice or raise any doubt concerning its independence as the Companys auditor.In that connection,KPMG informed us of the volume of the services that were not part of the audit which it had either provided to the Group in the past year or was
237、 engaged to provide in the year to come.The Supervisory Board has agreed with KPMG that the auditor should report to the Supervisory Board and record in the auditors report any fact found during the audit that is inconsistent with the declaration given by the Executive Board and the Supervisory Boar
238、d concerning implementation of the German Corporate Governance Code.KPMG examined the SAP SE financial statements prepared in accordance with the German Commercial Code,the consolidated financial statements prepared in accordance with International Financial Reporting Standards(IFRSs)as required by
239、the German Commercial Code,section 315e,and the combined SAP Group and SAP SE management report prepared in accordance with the German Commercial Code,and certified them without qualification.The auditor thus confirmed that,in its opinion and based on its audit in accordance with the applicable acco
240、unting principles,the SAP SE and consolidated financial statements give a true and fair view of the net assets,financial position,and results of operations of SAP SE and the SAP Group.The auditor also confirmed that the combined SAP SE and SAP Group management report is consistent with the correspon
241、ding financial statements and as a whole gives a suitable view of the position of SAP SE and the SAP Group and of foreseeable opportunities and risks.In accordance with section 317(3a)of the German Commercial Code,the auditor also examined and confirmed that the renderings of the financial statement
242、s,the management report,the consolidated financial statements,and the combined management report contained in the files submitted on an electronic data carrier,which can be accessed by the issuer on the secure client portal,and prepared for the purposes of SAP Integrated Report 2022 To Our Stakehold
243、ers Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 28/335 disclosure comply in all material respects with the requirements of section 328(1)of the German Commercial Code regarding the electronic reporting format(“E
244、SEF format”).KPMG had completed its audit of SAPs internal control over financial reporting and certified without qualification that it complies with the applicable U.S.standards.The auditor stated in its opinion that it considers SAPs internal controls with respect to the consolidated financial sta
245、tements to be effective in all material respects.Additionally,it provided assurance on the non-financial declaration and the disclosures contained therein on the topics identified as material namely,the environment,employees,human rights,corruption and bribery,customer loyalty,and data privacy and d
246、ata security in the combined management report,and on the separate review of the compensation report and selected qualitative and quantitative sustainability disclosures outside of the financial statements and management report.All Audit and Compliance Committee members and Supervisory Board members
247、 received initially in the form of drafts that were identical to the final documents the documents concerning the financial statements mentioned above,the audit reports prepared by KPMG,and the Executive Boards proposal concerning the appropriation of retained earnings in good time.On February 22,20
248、23,the Executive Board prepared the financial accounts of SAP SE and the Group for 2022,comprising the SAP SE financial statements,the consolidated financial statements,and the combined management report,and submitted them without delay to the Supervisory Board.The Executive Board explained the fina
249、ncial statements of SAP SE and the SAP Group and its proposal concerning the appropriation of retained earnings at the meeting of the Audit and Compliance Committee on February 22,2023(based on the drafts identical to the final documents)and at the meeting of the Supervisory Board on February 22,202
250、3.Members of the Executive Board answered questions from the Committee and the Supervisory Board.At the Audit and Compliance Committee meeting,they also explained the compensation report and the Annual Report on Form 20-F prepared in accordance with the applicable U.S.standards.After the Executive B
251、oard had explained them,the Audit and Compliance Committee and the Supervisory Board reviewed the financial statement documents(based on drafts identical to the final documents),taking KPMGs audit reports(or the drafts identical to the final documents)into account.The Audit and Compliance Committee
252、then passed the compensation report on to the Supervisory Board for release.The representative of the auditor who attended presented full reports on the audit and the results of the audit to the Audit and Compliance Committee and Supervisory Board meetings and explained its audit reports(or final dr
253、afts thereof).The auditor also reported that it had not identified any material weaknesses in SAPs internal control and risk-management systems for financial reporting.Both the Audit and Compliance Committee and the Supervisory Board asked detailed questions about the form,scope,and results of the a
254、udit.The Audit and Compliance Committee reported to the Supervisory Board on its own review of the financial statements of SAP SE and the SAP Group,its discussions with the Executive Board and with the auditor,and its supervision of the financial reporting process.It confirmed that,as part of its su
255、pervisory work,it had addressed the SAP Groups internal control,risk management,and internal auditing systems,and found the systems to be effective.The Committee also reported that KPMG had told it that no circumstances had arisen that might give cause for concern about KPMGs impartiality,and inform
256、ed us about the services KPMG had provided that were not part of the audit.The Committee reported that it had examined the auditors independence,taking the non-audit services it had rendered into consideration,and stated that,in the Committees opinion,the auditor possessed the required degree of ind
257、ependence and professional qualification.The Audit and Compliance Committee and the Supervisory Board satisfied themselves that KPMG had conducted the audit properly.In particular,they concluded that both the audit reports and the audit itself fulfilled the legal requirements.On the basis of the rep
258、ort and the Audit and Compliance Committees recommendation,the Supervisory Board approved the results of the audit and,since there were no findings from our own examination,we gave our consent to the SAP SE financial statements,the consolidated financial statements,the combined Group management repo
259、rt,and adopted the compensation report pursuant to the German Stock Corporation Act,section 162.The SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 29/335 financial sta
260、tements and combined management report were thus formally adopted upon approval by the Supervisory Board.The Supervisory Boards opinion of the Company and the Group coincided with that of the Executive Board as set out in the combined management report.The Supervisory Board considered the proposal p
261、resented by the Executive Board concerning the appropriation of retained earnings.We had regard to the requirements of dividends policy,the effects on the liquidity of SAP SE and the SAP Group,and the interests of the shareholders.We also discussed these matters with the auditor.We then endorsed the
262、 Executive Boards proposal concerning the appropriation of retained earnings,in accordance with the Audit and Compliance Committees recommendation.The corporate governance statement pursuant to the German Commercial Code,sections 315d and 289f was approved for publication by the Supervisory Board by
263、 way of correspondence vote prior to the meeting to discuss the financial statements.Finally,we adopted this present Report.Changes on the Executive Board and Supervisory Board in 2022 There were no changes on our Executive Board in 2022.The appointment of the new CFO as described above will only co
264、me into effect in 2023.The Supervisory Board bade farewell in 2022 to Bernard Liautaud who,after 14 years as a member,resigned from his position with effect from the closing of the Annual General Meeting of Shareholders on May 18,2022.The Supervisory Board thanks Bernard Liautaud for his commitment
265、to SAP.On May 18,2022,the Annual General Meeting of Shareholders elected Jennifer Li to the Supervisory Board as his successor.In addition to the ongoing COVID-19 pandemic,we now face major challenges from the war in Ukraine and its humanitarian,geopolitical,and economic implications.The Supervisory
266、 Board thanks the members of the Executive Board and all SAP employees for their tireless commitment to SAP under these extraordinary circumstances.For the Supervisory Board Professor Hasso Plattner(Chairperson)SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolida
267、ted Financial Statements IFRS Further Information on Sustainability Additional Information 30/335 Responsibility Statement To the best of our knowledge,and in accordance with the applicable reporting principles,the Consolidated Financial Statements give a true and fair view of the assets,finances,an
268、d operating results of the SAP Group,and the management report of the Group and SAP SE includes a fair review of the development and performance of the business and the position of the Group and SAP SE,together with a description of the principal opportunities and risks associated with the expected
269、development of the Group and SAP SE.Walldorf,February 22,2023 SAP SE Walldorf,Germany Executive Board of SAP SE Christian Klein Sabine Bendiek Luka Mucic Dr.Jrgen Mller Scott Russell Thomas Saueressig Julia WhiteSAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolid
270、ated Financial Statements IFRS Further Information on Sustainability Additional Information 31/335 Independent Auditors Report To SAP SE,Walldorf Report on the Audit of the Consolidated Financial Statements and of the Group Management Report Opinions We have audited the consolidated financial statem
271、ents of SAP SE,Walldorf,and its subsidiaries(the Group),which comprise the consolidated statements of financial position as at December 31,2022,consolidated income statements,consolidated statements of comprehensive income,consolidated statements of changes in equity and consolidated statements of c
272、ash flows for the financial year from January 1 to December 31,2022 and notes to the consolidated financial statements,including a summary of significant accounting policies.In addition,we have audited the combined Group Management Report by the SAP Group and the Management Report of SAP SE,Walldorf
273、(“Group Management Report”)for the financial year from January 1 to December 31,2022.In accordance with German legal requirements,we have not audited the content of those components of the Group Management Report specified in the Other Information section of our auditors report.In our opinion,on the
274、 basis of the knowledge obtained in the audit,the accompanying consolidated financial statements comply,in all material respects,with the IFRSs as adopted by the EU and the additional requirements of German commercial law pursuant to Section 315e(1)HGB Handelsgesetzbuch:German Commercial Code,as wel
275、l as the IFRSs as adopted by the International Accounting Standards Board and,in compliance with these requirements,give a true and fair view of the assets,liabilities and financial position of the Group as at December 31,2022,and of its financial performance for the financial year from January 1 to
276、 December 31,2022 and the accompanying Group Management Report as a whole provides an appropriate view of the Groups position.In all material respects,this Group Management Report is consistent with the consolidated financial statements,complies with German legal requirements and appropriately prese
277、nts the opportunities and risks of future development.Our opinion on the Group Management Report does not cover the content of those components of the Group Management Report specified in the Other Information section of the auditors report.Pursuant to Section 322(3)sentence 1 HGB,we declare that ou
278、r audit has not led to any reservations relating to the legal compliance of the consolidated financial statements and of the Group Management Report.Basis for the Opinions We conducted our audit of the consolidated financial statements and of the Group Management Report in accordance with Section 31
279、7 HGB and the EU Audit Regulation No.537/2014(referred to subsequently as“EU Audit Regulation”)and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprfer Institute of Public Auditors in Germany(IDW)as well as in suppleme
280、ntary compliance with the International Standards on Auditing(ISAs)and guidelines of the Public Company Accounting Oversight Board(United States).SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainabili
281、ty Additional Information 32/335 Our responsibilities under those requirements,principles and standards are further described in the“Auditors Responsibilities for the Audit of the Consolidated Financial Statements and of the Group Management Report”section of our auditors report.We are independent o
282、f the group entities in accordance with the requirements of European law and German commercial and professional law,and we have fulfilled our other German professional responsibilities in accordance with these requirements.In addition,in accordance with Article 10(2)point(f)of the EU Audit Regulatio
283、n,we declare that we have not provided non-audit services prohibited under Article 5(1)of the EU Audit Regulation.We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinions on the consolidated financial statements and on the Group Management Repor
284、t.Key Audit Matters in the Audit of Consolidated Financial Statements Key audit matters are those matters that,in our professional judgment,were of most significance in our audit of the consolidated financial statements for the financial year from January 1 to December 31,2022.These matters were add
285、ressed in the context of our audit of the consolidated financial statements as a whole,and in forming our opinion thereon,we do not provide a separate opinion on these matters.Software license revenue recognition Refer to note(A.1)Revenue and Group Management Report,section Risk Management and Risks
286、.THE FINANCIAL STATEMENT RISK In the financial year 2022 SAP generated revenue of EUR 30,871 million,of which EUR 13,965 million relate to revenues from sales of software licenses and support.The evaluation of software licenses revenue recognition bears an inherent risk of errors as SAPs software cu
287、stomer contracts are complex.SAP defined detailed policies,procedures and processes to manage the accounting for its customer contracts,which are also described in the notes.Applying them often requires significant judgments,in particular in the assessment of the following:1.whether various contract
288、s are economically interrelated,2.whether products and services qualify as separate performance obligations,and 3.the allocation of the transaction price of a customer contract to the performance obligations in the contract based on standalone-selling prices.There is the financial statement risk tha
289、t the recognition cut-off of software license revenue as at the balance sheet date is incorrect and that revenues are allocated incorrectly.OUR AUDIT APPROACH On software revenue recognition,we evaluated the compliance of SAPs accounting policies with the IFRS Framework and IFRS 15.We evaluated the
290、design and tested the operating effectiveness of certain internal controls related to the revenue process including controls related to the identification of economically interrelated contracts,separate performance obligations and allocation of the transaction price to the performance obligations in
291、 the contract.For a sample of customer contracts,which were selected using a statistical approach,we:inspected the underlying contractual agreements and other related documents as well as inquired with SAPs accounting and/or sales representatives to evaluate SAPs assessment of whether contracts were
292、 economically interrelated as well as to evaluate the identified performance obligations and allocation of transaction price,SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Informa
293、tion 33/335 obtained and inspected external confirmations of the key terms and conditions from the respective customers to test whether contracts were economically interrelated,as well as to evaluate the identified performance obligations,evaluated the allocation of the transaction price for each of
294、 the deliverables that qualified as a separate performance obligation by assessing the methodology applied and testing mathematical accuracy of the underlying calculations.For the majority of software support revenue,we compared the actual support revenue with the support revenue that is expected ba
295、sed on last years support revenue,the loss rate of last years support contracts and the current year software sales that trigger additional support revenue.OUR OBSERVATIONS SAP has developed an adequate framework for determining the accounting treatment for its revenue.For the vast majority of the s
296、oftware arrangements entered into during 2022,it was clear which of SAPs revenue recognition policies should be applied.Where there was room for interpretation,SAPs judgment was balanced and appropriate.Assessment of the Groups uncertain tax treatments Refer to note(C.5)Income Taxes,and Group Manage
297、ment Report section Risk Management and Risks.THE FINANCIAL STATEMENT RISK SAP operates in multiple tax jurisdictions with complexities and uncertainties due to different interpretations of tax laws,such as those involving transfer pricing and intercompany transactions between SAP Group entities.The
298、 determination of provisions for tax uncertainties requires SAP to make judgments on tax issues and develop estimates regarding SAPs exposure to tax risks.SAP regularly engages external experts to provide tax opinions to support their own risk assessment.The risk for the consolidated financial state
299、ments relates to the completeness,measurement and disclosure of the provision for uncertain tax treatments.As of December 31,2022 SAP disclosed contingent liabilities relating to tax uncertainties of EUR 1,571 million.OUR AUDIT APPROACH We evaluated the design and tested the operating effectiveness
300、of certain internal controls over the tax process including controls over the Groups assessment of tax law and the process to estimate the related exposures.We assessed the competency,skills and objectivity of the external experts and evaluated the related expert opinions.We inquired of the Groups t
301、ax department and inspected correspondence with the relevant tax authorities.We involved tax professionals with specialized skills and knowledge,who assisted in evaluating SAPs conclusions over the estimate of tax uncertainties based on their knowledge and experience regarding the application of rel
302、evant legislation by tax authorities and courts.Finally,we assessed whether the disclosures in the notes with respect to uncertain tax treatments are complete and appropriate.OUR OBSERVATIONS SAPs judgments as to the amounts recognized as tax provisions for tax uncertainties as of December 31,2022 a
303、re appropriate.The disclosures in the notes to the consolidated financial statements are complete and appropriate.Valuation of unlisted equity securities Refer to note(D.6)Equity Investments and note(F.2)Fair Value Disclosures on Financial Instruments SAP Integrated Report 2022 To Our Stakeholders C
304、ombined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 34/335 THE FINANCIAL STATEMENT RISK As of December 31,2022,the Company holds unlisted equity securities with a carrying amount of EUR 4,879 million.These financial inst
305、ruments are classified as equity securities at fair value through profit and loss and their valuations are based on significant unobservable inputs(Level 3 of the fair value hierarchy).The measurement of fair value of such investments is complex and,with regard to the assumptions made,highly depende
306、nt on managements estimates and judgments.This applies particularly to selection of the appropriate valuation method and the determination of the significant unobservable inputs.There is the risk for the consolidated financial statements that the valuations are not appropriate.There is also the risk
307、 that the related disclosures in the notes are not appropriate.OUR AUDIT APPROACH We evaluated the design and implementation and tested the operating effectiveness of certain internal controls over the Companys investments process.This included controls related to selection of the valuation model an
308、d the relevance and reliability of the significant unobservable inputs.We also involved financial instrument valuation professionals with specialized skills and knowledge,who assisted in testing managements ability to produce a fair value estimate compliant with IFRS 13 Fair Value Measurements for a
309、 selection of investments by(1)testing the appropriateness of the valuation method selected by comparing it to our expectation based on industry experience and knowledge of the investment,and(2)assessing the reliability and relevance of the significant unobservable inputs by comparing them to histor
310、ical and market information.Finally,we assessed whether the related disclosures in the notes regarding the determination of fair value are appropriate.OUR OBSERVATIONS The valuation method used for the valuation of unlisted equity securities is appropriate and in line with the accounting policies.Th
311、e Companys underlying assumptions and data are appropriate.The related disclosures in the notes are appropriate.Other Information The Executive Board and the Supervisory Board,respectively,of SAP SE is responsible for the other information.The other information comprises the following components of
312、the Management Report,whose content was not audited:the combined non-financial statement,included in section“Non-Financial Statement Including Information on Sustainable Activities”of the Group Management Report,the corporate governance statement,referred to in section“Corporate Governance Fundament
313、als”of the Group Management Report,and information extraneous to the Group Management Report and marked as unaudited.The other information also includes the annual report on Form 20-F and remaining parts of the annual report.The other information does not include the consolidated financial statement
314、s,group management report information and our auditors report thereon.Our opinions on the consolidated financial statements and on the Group Management Report do not cover the other information and consequently we do not express an opinion or any other form of assurance conclusion thereon.In connect
315、ion with our audit,our responsibility is to read the other information and,in so doing,to consider whether the other information SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Inf
316、ormation 35/335 is materially inconsistent with the consolidated financial statements,with the Group Management Report information audited for content or our knowledge obtained in the audit,or otherwise appears to be materially misstated.If,based on the work we have performed,we conclude that there
317、is a material misstatement of this other information,we are required to report that fact.We have nothing to report in this regard.In addition,we were engaged to perform an independent assurance engagement on selected qualitative and quantitative sustainability disclosures of the integrated report 20
318、22.In regard to the nature,extent and conclusions of this independent assurance engagement we refer to our Independence Assurance Report dated on February 22,2023.Responsibilities of the Executive Board and the Supervisory Board for the Consolidated Financial Statements and the Group Management Repo
319、rt The Executive Board of SAP SE is responsible for the preparation of the consolidated financial statements that comply,in all material respects,with IFRSs as adopted by the EU and the additional requirements of German commercial law pursuant to Section 315e(1)HGB as well as IFRSs as adopted by the
320、 International Accounting Standards Board and that the consolidated financial statements,in compliance with these requirements,give a true and fair view of the assets,liabilities,financial position,and financial performance of the Group.In addition,the Executive Board is responsible for such interna
321、l control as the Executive Board has determined necessary to enable the preparation of consolidated financial statements that are free from material misstatement,whether due to fraud(i.e.,fraudulent financial reporting and misappropriation of assets)or error.In preparing the consolidated financial s
322、tatements,the Executive Board is responsible for assessing the Groups ability to continue as a going concern.The Executive Board also has the responsibility for disclosing,as applicable,matters related to going concern.In addition,the Executive Board is responsible for financial reporting based on t
323、he going concern basis of accounting unless there is an intention to liquidate the Group or to cease operations,or there is no realistic alternative but to do so.Furthermore,the Executive Board is responsible for the preparation of the Group Management Report that,as a whole,provides an appropriate
324、view of the Groups position and is,in all material respects,consistent with the consolidated financial statements,complies with the German legal requirements and appropriately presents the opportunities and risks of future development.In addition,the Executive Board is responsible for such arrangeme
325、nts and measures(systems)as the Executive Board has considered necessary to enable the preparation of the Group Management Report that is in accordance with the applicable German legal requirements,the German Accounting Standards number 17 and 20(GAS 17,GAS 20)and the IFRS Practice Statement Managem
326、ent Commentary and to be able to provide sufficient appropriate evidence for the assertions in the Group Management Report.The Supervisory Board is responsible for overseeing the Groups financial reporting process for the preparation of the consolidated financial statements and of the Group Manageme
327、nt Report.SAP Integrated Report 2022 To Our Stakeholders Combined Group Management Report Consolidated Financial Statements IFRS Further Information on Sustainability Additional Information 36/335 Auditors Responsibilities for the Audit of the Consolidated Financial Statements and of the Group Manag
328、ement Report Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement,whether due to fraud or error,and whether the Group Management Report as a whole provides an appropriate view of the Groups position and,i
329、n all material respects,is consistent with the consolidated financial statements and the knowledge obtained in the audit,complies with the German legal requirements and appropriately presents the opportunities and risks of future development,as well as to issue an auditors report that includes our o
330、pinions on the consolidated financial statements and on the Group Management Report.Reasonable assurance is a high level of assurance,but is not a guarantee that an audit conducted in accordance with Section 317 HGB and the EU Audit Regulation and in compliance with German Generally Accepted Standar
331、ds for Financial Statement Audits promulgated by the Institut der Wirtschaftsprfer(IDW)as well as in supplementary compliance with ISAs and guidelines of the Public Company Accounting Oversight Board(United States)will always detect a material misstatement.Misstatements can arise from fraud or error
332、 and are considered material if,individually or in the aggregate,they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements and this Group Management Report.We exercise professional judgment and maintain professional s
333、cepticism throughout the audit.We also:Identify and assess the risks of material misstatement of the consolidated financial statements and of the Group Management Report,whether due to fraud or error,design and perform audit procedures responsive to those risks,and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinions.The risk of not detecting a material miss