Core Insights - The article discusses the rapid advancement of "Physical AI," particularly through NVIDIA's ambitious strategy to create a platform-level infrastructure that integrates training, simulation, and deployment in physical systems [1][2][11] - It highlights the collaboration between NVIDIA and leading industrial giants like Siemens, BMW, and General Motors to incorporate AI into complex physical systems such as manufacturing and autonomous driving [1][11] Summary by Categories Definition and Differentiation - Physical AI, embodied intelligence, and spatial intelligence represent different pathways for AI to perceive, integrate, and alter the physical world [2][6] - Spatial intelligence focuses on AI's understanding of three-dimensional structures and relationships, while embodied intelligence emphasizes interaction with the environment through physical actions [3][4][9] - Physical AI serves as the central nervous system connecting perception and action, enabling AI to truly enter the physical realm [5][6] Technological Framework - The core of Physical AI is NVIDIA's "three computers" architecture, which includes training with real and synthetic data, creating high-fidelity virtual environments, and deploying trained models in real-world applications [14][16] - Key technologies supporting Physical AI include synthetic data generation, virtual simulation platforms, and model generalization capabilities [9][10][11] Historical Context and Comparison - The article draws parallels between NVIDIA's Physical AI strategy and GE's earlier industrial internet platform, Predix, which ultimately failed due to its closed ecosystem approach [15][19][21] - Unlike GE, NVIDIA's strategy emphasizes an open, developer-first approach, providing a comprehensive toolkit rather than a singular solution [23][24][27] Future Trends and Industry Implications - The integration of AI into physical systems is seen as a long-term evolution rather than a short-term trend, requiring patience and strategic investment in foundational capabilities [37][39] - Companies in the industry are advised to focus on building internal capabilities and understanding the underlying logic of the tools they use, rather than merely adopting them superficially [33][35][36]

尽管制造业的数字化已经进行了几年，但市场竞争格局尚未出现任何改变，未来在行业层面、市场打法层 面、产品及服务层面还有巨大的潜力，一切都是未知，一切也都有可能。 1）市场机会层面： 行业层面上， 离散制造业中的高技术产业是高潜力行业；打法层面上，垂直行业攻坚和信创/国产替代行业相对容易出现 领头企业。 2）产品层面： 大模型具有非常强的可探索性，但还处于非常早期的阶段，供需双方都在尝 试。大模型短期对市场竞争格局影响不大，但长期看，当大模型对实际应用场景具有支撑作用能力时，会加 速市场变化，故企业需把握大模型机会。 3）数据层面： 目前市场上数据交易、数据开放的声音出现比较 多，但企业无需纠结是否跟随，重要的是要基于数据（无论是自身数据还是外部数据）构建自己的行业认知 壁垒，即内化数据，完成数据-显性知识-隐性知识构建的完整链条。 需求市 场1 -具有强烈的地域特色 广东、江苏、浙江、山东等是制造业企业数TOP4省份，也是积极打造产业 集 群、 积极试行数字化转型的省份 制造业数字化转型丨 研究报告 核心摘要： 需求端的核心需求没有变，生产制造管理相关、供应链相关等是重点，也是离散制造业的核心诉求 。 只不 过 ...

Group 1: Market Performance - The U.S. stock market is showing signs of weakness, with the S&P 500 and Nasdaq 100 indices down approximately 3% and 6% respectively this year, while many foreign markets, including Germany, Poland, Spain, and Brazil, have seen increases of up to 20% [1][2] - ETFs tracking foreign markets have outperformed U.S. indices, with many showing gains exceeding 20% [1] - The MSCI Emerging Markets Index has lagged behind the S&P 500 by an average of 3.8 percentage points every 100 days since 2015, but this year, the trend is reversing as foreign markets rise [4][5] Group 2: Investment Strategies - Investors are increasingly recognizing the value of geographic diversification, moving away from the "American exceptionalism" narrative that dominated for over a decade [2][3] - The shift in focus towards overseas markets is driven by lower valuations and more aggressive stimulus measures in countries like Germany compared to the U.S. [2][3] - Financial giants like BlackRock are advising investors to look beyond U.S. tech giants and consider European value stocks and Asian AI innovators [3] Group 3: Economic Factors - The uncertainty surrounding U.S. trade policies, particularly under the Trump administration, is contributing to a decline in investor confidence in the U.S. economy, leading to a weakening dollar and a shift towards foreign assets [5][7] - The European Central Bank has been more aggressive in its monetary policy compared to the Federal Reserve, providing a more favorable economic outlook for Europe [9][10] - Increased military spending in Europe is also seen as a significant driver for the region's stock market performance, with defense stocks gaining substantial investment [10][11] Group 4: Emerging Markets - China’s stock market is outperforming the U.S. market, with the Hang Seng Index up 13.5% and the Hang Seng Tech Index up 16% this year [20][22] - The rise of Chinese tech companies, particularly in AI, is attracting global investor interest, with DeepSeek leading a new paradigm in low-cost AI training and inference [22][23] - The influx of capital from the U.S. to China is expected to continue as investors seek better valuations and growth potential in the Chinese market [24]

Group 1 - SAP SE reported Q1 revenue of €9.01 billion, reflecting a 12% year-over-year growth, slightly exceeding market expectations [1] - Cloud revenue for SAP grew by 27%, now representing a significant portion of total revenue [1] - The results support the ongoing transition to cloud services, which is a key narrative for the company's long-term strategy [1] Group 2 - The analyst has over 10 years of experience in the German small and mid-cap software market, indicating a strong background in the industry [1] - There is an intention to expand coverage to include other European and North American software companies, aiming to identify investment opportunities in the evolving SaaS and cloud landscape [1]

基于 AI 的编码技术因其能让开发者工作更快速、更轻松的承诺而迅速走红。但 AI 编码也带来了另一个后果： 代码行数激增，进而导致因漏洞引发崩溃或其他事故的可能性大幅上升。 4月28日，一家名为 Lightrun 的以色列初创公司宣布完成 7000 万美元的 B 轮融资。 该公司开发了一个可观测性平台，旨在问题出现前识别并调试、修复代码。这笔融资不仅凸显了市场对此类工 具的迫切需求，也证明了 Lightrun 在满足这一需求上的强劲势头。 新投资方 Accel 与现有投资者 Insight Partners 共同领投本轮，花旗银行、 Glilot Capital 、 GTM Capital 及 Sorenson Capital 参与跟投。至此， Lightrun 已累计融资 1.1 亿美元，包括 2021 年报道过的由 Insight 领投的 A 轮融资。这家初创公司未公开其估值。 花旗银行作为战略支持者，与一系列知名客户并列，其中包括 ADP 、 AT&T 、 ICE/NYSE 、 Inditex 、微 软、 Priceline 、 Salesforce 和 SAP 等。 其产品及其在当前市场格局中的定位时 ...

Copenhagen, Denmark, April 28, 2025 (GLOBE NEWSWIRE) -- Netcare International celebrates a journey of over two decades defined by innovation, technical excellence, and a dedication to collaborative success. Over the years, it has grown from a one-man consultancy into a global force, bringing comprehensive Systems, Applications, and Products in Data Processing (SAP) solutions across industries globally. The company, based in Hellerup, Denmark, was founded on the principle that expertise and genuine partnersh ...

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) This section provides an overview of SAP's strong Q1 2025 performance, management commentary, key financial highlights, and strategic business updates [Q1 2025 Performance Overview](index=1&type=section&id=Q1%202025%20Performance%20Overview) SAP reported strong Q1 2025 financial results, with significant growth in cloud revenue and operating profit, driven by expanding cloud backlog and a resilient business model Q1 2025 Performance Metrics | Metric | Q1 2025 (€ millions) | Q1 2024 (€ millions) | ∆ in % | ∆ in % const. curr. | | :--- | :--- | :--- | :--- | :--- | | Current cloud backlog | 18,202 | 14,179 | 28 | 29 | | Cloud revenue | 4,993 | 3,928 | 27 | 26 | | Cloud ERP Suite revenue | 4,251 | 3,167 | 34 | 33 | | Total revenue | 9,013 | 8,041 | 12 | 11 | | IFRS operating profit | 2,333 | -787 | NA | | | Non-IFRS operating profit | 2,455 | 1,533 | 60 | 58 | | Share of more predictable revenue (in %) | 86 | 84 | 2pp | | [Management Commentary](index=2&type=section&id=Management%20Commentary) CEO Christian Klein highlighted the success of SAP's strategy, evidenced by strong cloud backlog and double-digit revenue growth, emphasizing the resilience of the business model and the role of AI. CFO Dominik Asam noted a solid start to the year with strong revenue and profit expansion, attributing it to cost discipline and focused execution, while maintaining vigilance in a volatile environment - CEO Christian Klein emphasized the success of SAP's strategy, with current cloud backlog expanding **29% at constant currencies** and total revenue seeing a double-digit increase, supported by an **86% share of predictable revenue** and an AI-powered portfolio[4](index=4&type=chunk) - CFO Dominik Asam highlighted a solid start to the year with strong total revenue growth and outstanding operating profit expansion, attributing these results to cost discipline and focused execution, while remaining vigilant regarding the broader economic environment[5](index=5&type=chunk) [Financial Highlights](index=3&type=section&id=Financial%20Highlights) Q1 2025 saw robust growth across key financial metrics, including cloud revenue, Cloud ERP Suite revenue, and significant increases in both IFRS and non-IFRS operating profit and earnings per share, alongside strong cash flow generation Q1 2025 Financial Performance | Metric | Q1 2025 (€ millions) | Q1 2024 (€ millions) | ∆ in % | ∆ in % const. curr. | | :--- | :--- | :--- | :--- | :--- | | Cloud revenue | 4,993 | 3,928 | 27 | 26 | | Cloud ERP Suite revenue | 4,251 | 3,167 | 34 | 33 | | Software licenses revenue | 183 | 203 | -10 | -10 | | Total revenue | 9,013 | 8,041 | 12 | 11 | | IFRS Cloud gross profit | 3,720 | 2,837 | 31 | | | Non-IFRS Cloud gross profit | 3,745 | 2,849 | 31 | 30 | | IFRS operating profit | 2,333 | -787 | NA | | | Non-IFRS operating profit | 2,455 | 1,533 | 60 | 58 | | IFRS EPS (basic) | 1.52 | -0.71 | NA | | | Non-IFRS EPS (basic) | 1.44 | 0.81 | 79 | | | Operating cash flow | 3,780 | 2,878 | 31 | | | Free cash flow | 3,583 | 2,642 | 36 | | - IFRS operating profit growth was positively impacted by a **€2.2 billion decline in restructuring expenses** compared to Q1 2024, due to the 2024 transformation program[12](index=12&type=chunk) [Strategic Initiatives & Business Updates](index=3&type=section&id=Strategic%20Initiatives%20%26%20Business%20Updates) SAP continued its share repurchase program, concluded its 2024 transformation program, secured significant customer wins for its "RISE with SAP" and "GROW with SAP" offerings globally, and announced a new data solution and a dividend proposal [Share Repurchase Program](index=3&type=section&id=Share%20Repurchase%20Program) - As of March 31, 2025, SAP repurchased **18,985,135 shares** at an average price of **€164.79**, totaling approximately **€3.1 billion** under the €5 billion program[15](index=15&type=chunk) - The third tranche of the share repurchase program, with a purchased volume of approximately **€1.5 billion**, was completed on April 8, 2025[15](index=15&type=chunk) [2024 Transformation Program](index=3&type=section&id=2024%20Transformation%20Program) - The 2024 transformation program concluded as planned in Q1 2025, with overall associated expenses of approximately **€3.2 billion**[16](index=16&type=chunk) - Restructuring payouts amounted to **€2.5 billion for the full-year 2024** and **€0.3 billion for Q1 2025**, with approximately **€0.4 billion** expected in the remainder of 2025[16](index=16&type=chunk) [Customer Wins & Regional Performance](index=3&type=section&id=Customer%20Wins%20%26%20Regional%20Performance) - Customers like HUGO BOSS, Hyundai Motor Company, Kia Corporation, and Tyson Foods chose "RISE with SAP" for end-to-end business transformations[17](index=17&type=chunk) - Gymshark and Oki Electric Industry selected "GROW with SAP" for rapid cloud ERP adoption[18](index=18&type=chunk) - SAP's cloud revenue performance was particularly strong in APJ and EMEA, and robust in the Americas, with outstanding results in countries like Brazil, Germany, India, and South Korea[21](index=21&type=chunk) [Product & Dividend Announcements](index=4&type=section&id=Product%20%26%20Dividend%20Announcements) - SAP announced SAP Business Data Cloud on February 13, a solution designed to unify SAP and third-party data to foster reliable AI and impactful decisions[22](index=22&type=chunk) - A dividend of **€2.35 per share** for fiscal year 2024 was proposed, marking a **6.8% year-over-year increase**, subject to shareholder approval[23](index=23&type=chunk) [Outlook 2025](index=4&type=section&id=Outlook%202025) SAP's 2025 outlook projects significant growth in cloud revenue, cloud and software revenue, and non-IFRS operating profit, alongside strong free cash flow, despite a dynamic environment [Financial Outlook](index=4&type=section&id=Financial%20Outlook) Despite a dynamic and uncertain environment, SAP maintains its 2025 financial outlook, projecting significant growth in cloud revenue, cloud and software revenue, and non-IFRS operating profit at constant currencies, along with strong free cash flow - SAP expects current cloud backlog growth at constant currencies to slightly decelerate in 2025[24](index=24&type=chunk) 2025 Financial Outlook (at constant currencies) | Metric (at constant currencies) | 2025 Outlook | 2024 Actual | YoY Growth | | :--- | :--- | :--- | :--- | | Cloud revenue | €21.6 – 21.9 billion | €17.14 billion | 26% to 28% | | Cloud and software revenue | €33.1 – 33.6 billion | €29.83 billion | 11% to 13% | | Non-IFRS operating profit | €10.3 – 10.6 billion | €8.15 billion | 26% to 30% | | Free cash flow (actual currencies) | Approximately €8.0 billion | €4.22 billion | ~89% | | Effective tax rate (non-IFRS) | Approximately 32% | 32.3% | | [Currency Impact](index=4&type=section&id=Currency%20Impact) SAP anticipates currency exchange rate fluctuations to impact actual reported figures for Q2 and FY 2025, with minor negative impacts projected for cloud and cloud and software revenue growth, and a neutral impact on non-IFRS operating profit growth Currency Impact on Growth | Metric | Q2 2025 Currency Impact | FY 2025 Currency Impact | | :--- | :--- | :--- | | Cloud revenue growth | -1.0pp | -0.0pp | | Cloud and software revenue growth | -0.5pp | -0.0pp | | Operating profit growth (non-IFRS) | 0.0pp | -0.0pp | [Additional Information](index=5&type=section&id=Additional%20Information) This section provides details on SAP's upcoming corporate events, including the Annual General Meeting and a financial analyst conference, along with an overview of SAP's business and standard legal disclaimers [Corporate Events & Resources](index=5&type=section&id=Corporate%20Events%20%26%20Resources) SAP announced its Annual General Meeting of Shareholders for May 13, 2025, as a virtual event, and a financial analyst conference on May 21, in conjunction with SAP Sapphire & ASUG Annual Conference Orlando - The Annual General Meeting of Shareholders will be held virtually on May 13, 2025[30](index=30&type=chunk) - A financial analyst event is scheduled for May 21, in conjunction with SAP Sapphire & ASUG Annual Conference Orlando[31](index=31&type=chunk) [About SAP & Legal Disclaimers](index=5&type=section&id=About%20SAP%20%26%20Legal%20Disclaimers) SAP, a global leader in enterprise applications and business AI for over 50 years, provides business-critical operations solutions. The report includes standard disclaimers regarding preliminary, unaudited information and forward-looking statements - SAP is a global leader in enterprise applications and business AI, providing solutions for finance, procurement, HR, supply chain, and customer experience for over 50 years[33](index=33&type=chunk) - The press release contains preliminary and unaudited information and includes forward-looking statements subject to risks and uncertainties[29](index=29&type=chunk)[38](index=38&type=chunk) [Financial and Non-Financial Key Facts](index=7&type=section&id=Financial%20and%20Non-Financial%20Key%20Facts) This section presents a comprehensive overview of SAP's key financial and non-financial metrics for Q1 2025, including revenues, profits, backlog, cash flow, employee numbers, and environmental impact [Financial and Non-Financial Key Facts](index=7&type=section&id=Financial%20and%20Non-Financial%20Key%20Facts) This section provides a comprehensive overview of SAP's key financial and non-financial metrics for Q1 2025, with comparative data for previous quarters and full-year 2024, highlighting trends in revenues, profits, margins, backlog, cash flow, employee numbers, and environmental impact Q1 2025 Key Facts | Metric | Q1 2025 | Q1 2024 | % change yoy | % change constant currency yoy | | :--- | :--- | :--- | :--- | :--- | | Cloud Revenue | 4,993 | 3,928 | 27 | 26 | | Cloud ERP Suite Revenue | 4,251 | 3,167 | 34 | 33 | | Total Revenue | 9,013 | 8,041 | 12 | 11 | | Operating profit (IFRS) | 2,333 | -787 | NA | | | Operating profit (non-IFRS) | 2,455 | 1,533 | 60 | 58 | | Cloud gross margin (non-IFRS, in %) | 75.0 | 72.5 | 2.5pp | | | Operating margin (non-IFRS, in %) | 27.2 | 19.1 | 8.1pp | | | Current cloud backlog | 18,202 | 14,179 | 28 | 29 | | Free cash flow | 3,583 | 2,642 | 36 | | | Number of employees (quarter end) | 108,187 | 108,133 | 0.05 | | | Women in executive roles (in %, quarter end) | 23.7 | 21.7 | 2.0pp | | | Gross greenhouse gas emissions (million tons CO2 equivalents) | 1.6 | 1.8 | -11.1 | | [Primary Financial Statements of SAP Group (IFRS)](index=9&type=section&id=(A)%20Consolidated%20Income%20Statements) This section presents SAP Group's IFRS primary financial statements, including consolidated income statements, statements of financial position, and cash flow statements, for Q1 2025 [Consolidated Income Statements](index=9&type=section&id=(A.1)%20Consolidated%20Income%20Statements%20%E2%80%93%20Quarter) SAP's IFRS consolidated income statement for Q1 2025 shows a significant turnaround from a loss to a profit, driven by strong revenue growth, particularly in cloud services, and a substantial reduction in restructuring expenses compared to the prior year Consolidated Income Statements | Metric (€ millions) | Q1 2025 | Q1 2024 | ∆ in % | | :--- | :--- | :--- | :--- | | Cloud | 4,993 | 3,928 | 27 | | Software licenses | 183 | 203 | -10 | | Total revenue | 9,013 | 8,041 | 12 | | Gross profit | 6,607 | 5,762 | 15 | | Restructuring | 0 | -2,242 | NA | | Operating profit (loss) | 2,333 | -787 | NA | | Profit (loss) after tax | 1,796 | -824 | NA | | Earnings per share, basic (in €) | 1.52 | -0.71 | NA | [Consolidated Statements of Financial Position](index=10&type=section&id=(B)%20Consolidated%20Statements%20of%20Financial%20Position) As of March 31, 2025, SAP's consolidated financial position shows an increase in total assets, primarily driven by higher cash and cash equivalents and trade receivables, while total liabilities also increased, mainly due to contract liabilities Consolidated Statements of Financial Position | Metric (€ millions) | 03/31/2025 | 12/31/2024 | | :--- | :--- | :--- | | Cash and cash equivalents | 11,345 | 9,609 | | Total current assets | 23,968 | 21,401 | | Total assets | 75,629 | 74,218 | | Contract liabilities (current) | 9,211 | 5,978 | | Total current liabilities | 20,550 | 19,078 | | Total liabilities | 29,543 | 28,410 | | Total equity | 46,086 | 45,808 | [Consolidated Statements of Cash Flows](index=11&type=section&id=(C)%20Consolidated%20Statements%20of%20Cash%20Flows) SAP reported a significant increase in net cash flows from operating activities in Q1 2025, primarily due to higher profitability and a positive development in working capital, leading to a substantial rise in free cash flow Consolidated Statements of Cash Flows | Metric (€ millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Profit (loss) after tax | 1,796 | -824 | | Net cash flows from operating activities | 3,780 | 2,878 | | Net cash flows from investing activities | 43 | -986 | | Net cash flows from financing activities | -1,723 | -787 | | Net increase/decrease in cash and cash equivalents | 1,735 | 1,170 | | Cash and cash equivalents at the end of the period | 11,345 | 9,295 | [Non-IFRS Numbers](index=12&type=section&id=Non-IFRS%20Numbers) This section details SAP's non-IFRS financial measures, including their basis of presentation and comprehensive reconciliations to IFRS figures, along with adjustments by functional area [Basis of Non-IFRS Presentation](index=12&type=section&id=(D)%20Basis%20of%20Non-IFRS%20Presentation) SAP utilizes non-IFRS financial measures, such as expense and profit measures, to provide supplemental information not prepared in accordance with IFRS, offering a clearer view of underlying business performance - SAP discloses non-IFRS financial measures to provide supplemental information not prepared in accordance with IFRS[48](index=48&type=chunk) [Reconciliation from Non-IFRS Numbers to IFRS Numbers](index=12&type=section&id=(E)%20Reconciliation%20from%20Non-IFRS%20Numbers%20to%20IFRS%20Numbers) This sub-section provides detailed reconciliations between IFRS and non-IFRS figures for revenue, operating expenses, profit, and key ratios, illustrating the impact of adjustments on reported financial performance [Reconciliation of Non-IFRS Revenue – Quarter](index=12&type=section&id=(E.1)%20Reconciliation%20of%20Non-IFRS%20Revenue%20%E2%80%93%20Quarter) | Metric (€ millions) | IFRS Q1 2025 | Currency Impact | Non-IFRS Constant Currency Q1 2025 | IFRS Q1 2024 | ∆ in % IFRS | ∆ in % Non-IFRS Constant Currency | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cloud | 4,993 | -58 | 4,936 | 3,928 | 27 | 26 | | Software licenses | 183 | 0 | 183 | 203 | -10 | -10 | | Total revenue | 9,013 | -97 | 8,916 | 8,041 | 12 | 11 | [Reconciliation of Non-IFRS Operating Expenses – Quarter](index=13&type=section&id=(E.2)%20Reconciliation%20of%20Non-IFRS%20Operating%20Expenses%20%E2%80%93%20Quarter) | Metric (€ millions) | IFRS Q1 2025 | Adj. Non-IFRS | Non-IFRS Q1 2025 | IFRS Q1 2024 | Adj. Non-IFRS | Non-IFRS Q1 2024 | ∆ in % IFRS | ∆ in % Non-IFRS | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cost of cloud | -1,273 | 24 | -1,249 | -1,091 | 12 | -1,079 | 17 | 16 | | Restructuring | 0 | 0 | 0 | -2,242 | 2,242 | 0 | NA | NA | | Total operating expenses | -6,680 | 122 | -6,558 | -8,828 | 2,321 | -6,507 | -24 | 1 | [Reconciliation of Non-IFRS Profit Figures, Income Tax, and Key Ratios – Quarter](index=13&type=section&id=(E.3)%20Reconciliation%20of%20Non-IFRS%20Profit%20Figures,%20Income%20Tax,%20and%20Key%20Ratios%20%E2%80%93%20Quarter) | Metric (€ millions) | IFRS Q1 2025 | Adj. Non-IFRS | Non-IFRS Q1 2025 | IFRS Q1 2024 | Adj. Non-IFRS | Non-IFRS Q1 2024 | ∆ in % IFRS | ∆ in % Non-IFRS | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating profit (loss) | 2,333 | 122 | 2,455 | -787 | 2,321 | 1,533 | NA | 60 | | Profit (loss) after tax | 1,796 | -115 | 1,681 | -824 | 1,768 | 944 | NA | 78 | | Operating margin (in %) | 25.9 | | 27.2 | -9.8 | | 19.1 | 35.7pp | 8.2pp | | Earnings per share, basic (in €) | 1.52 | | 1.44 | -0.71 | | 0.81 | NA | 79 | [Reconciliation of Free Cash Flow](index=14&type=section&id=(E.4)%20Reconciliation%20of%20Free%20Cash%20Flow) | Metric (€ millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash flows from operating activities | 3,780 | 2,878 | | Purchase of intangible assets and property, plant, and equipment | -168 | -187 | | Proceeds from sales of intangible assets and property, plant, and equipment | 38 | 27 | | Payments of lease liabilities | -68 | -78 | | Free cash flow | 3,583 | 2,642 | [Non-IFRS Adjustments – Actuals and Estimates](index=14&type=section&id=(F)%20Non-IFRS%20Adjustments%20%E2%80%93%20Actuals%20and%20Estimates) This section outlines the specific adjustments made to IFRS profit before tax to arrive at non-IFRS figures, including acquisition-related charges, restructuring, and gains/losses from equity securities, with estimates provided for full-year 2025 Non-IFRS Adjustments | Adjustment (€ millions) | Estimated Amounts for FY 2025 | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | :--- | | Acquisition-related charges | 380-460 | 123 | 79 | | Restructuring | ~100 | 0 | 2,242 | | Gains and losses from equity securities, net | N/A | -208 | 56 | | Profit (loss) before tax (IFRS) | | 2,468 | -980 | | Profit (loss) before tax (non-IFRS) | | 2,382 | 1,396 | [Non-IFRS Operating Expense Adjustments by Functional Areas](index=14&type=section&id=(G)%20Non-IFRS%20Operating%20Expense%20Adjustments%20by%20Functional%20Areas) This section provides a detailed breakdown of non-IFRS operating expense adjustments by functional area, showing how acquisition-related charges and restructuring expenses are reclassified to present a clearer view of operational costs Non-IFRS Operating Expense Adjustments | Functional Area (€ millions) | IFRS Q1 2025 | Acquisition Related Adj. | Restructuring Adj. | Non-IFRS Q1 2025 | IFRS Q1 2024 | Acquisition Related Adj. | Restructuring Adj. | Non-IFRS Q1 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cost of cloud | -1,273 | 24 | 0 | -1,249 | -1,091 | 12 | 0 | -1,079 | | Research and development | -1,673 | 1 | 0 | -1,672 | -1,665 | 2 | 0 | -1,663 | | Sales and marketing | -2,235 | 95 | 0 | -2,140 | -2,278 | 64 | 0 | -2,214 | | Restructuring | 0 | 0 | 0 | 0 | -2,242 | 0 | 2,242 | 0 | | Total operating expenses | -6,680 | 123 | 0 | -6,558 | -8,828 | 79 | 2,242 | -6,507 | - Restructuring expenses, if not presented separately, would be allocated across various functional areas, with significant impacts on research and development, sales and marketing, and cost of services in Q1 2024[55](index=55&type=chunk) [Disaggregations](index=16&type=section&id=Disaggregations) This section disaggregates SAP's financial performance by segment and region, and provides employee distribution across functional areas, offering a detailed view of the company's operational structure [Segment Reporting](index=16&type=section&id=(H)%20Segment%20Reporting) SAP has revised its segment structure into Applications, Technology & Support (ATS) and Core Services, with both segments contributing to revenue and profit, reflecting the company's cohesive product portfolio and customer transformation support [Segment Policies and Changes](index=16&type=section&id=(H.1)%20Segment%20Policies%20and%20Changes) - SAP has revised its segment structure into two operating segments: Applications, Technology & Support (ATS) and Core Services[56](index=56&type=chunk) - The ATS segment represents SAP's cohesive product portfolio, while the Core Services segment supports the product portfolio by enabling customer business transformation and innovation adoption[59](index=59&type=chunk) [Segment Reporting – Quarter](index=16&type=section&id=(H.2)%20Segment%20Reporting%20%E2%80%93%20Quarter) Applications, Technology & Support (ATS) Segment (€ millions, non-IFRS) | Metric | Q1 2025 Actual Currency | Q1 2024 Actual Currency | | :--- | :--- | :--- | | Cloud | 4,993 | 3,928 | | Total segment revenue | 8,018 | 7,061 | | Segment gross profit | 6,434 | 5,616 | | Segment profit (loss) | 3,154 | 2,301 | Core Services Segment (€ millions, non-IFRS) | Metric | Q1 2025 Actual Currency | Q1 2024 Actual Currency | | :--- | :--- | :--- | | Services | 994 | 979 | | Total segment revenue | 994 | 979 | | Segment gross profit | 237 | 206 | | Segment profit (loss) | 87 | 41 | [Revenue by Region (IFRS and Non-IFRS)](index=17&type=section&id=(I)%20Revenue%20by%20Region%20(IFRS%20and%20Non-IFRS)) SAP's Q1 2025 revenue showed strong growth across all major regions, with APJ leading in cloud revenue growth, and EMEA and Americas also contributing significantly to total revenue [Revenue by Region (IFRS and Non-IFRS) – Quarter](index=17&type=section&id=(I.1)%20Revenue%20by%20Region%20(IFRS%20and%20Non-IFRS)%20%E2%80%93%20Quarter) Cloud Revenue by Region (€ millions) | Region | Q1 2025 Actual | Q1 2024 Actual | ∆ in % Actual | ∆ in % Constant Currency | | :--- | :--- | :--- | :--- | :--- | | EMEA | 2,032 | 1,557 | 30 | 29 | | Americas | 2,231 | 1,847 | 21 | 19 | | APJ | 731 | 524 | 39 | 39 | | Total Cloud revenue | 4,993 | 3,928 | 27 | 26 | Total Revenue by Region (€ millions) | Region | Q1 2025 Actual | Q1 2024 Actual | ∆ in % Actual | ∆ in % Constant Currency | | :--- | :--- | :--- | :--- | :--- | | Total EMEA | 4,033 | 3,596 | 12 | 11 | | Total Americas | 3,665 | 3,337 | 10 | 8 | | Total APJ | 1,315 | 1,107 | 19 | 18 | | Total revenue | 9,013 | 8,041 | 12 | 11 | [Employees by Region and Functional Areas](index=18&type=section&id=(J)%20Employees%20by%20Region%20and%20Functional%20Areas) As of March 31, 2025, SAP's total employee count remained stable year-over-year, with slight shifts in distribution across regions and functional areas, notably an increase in cloud and software employees Employees by Functional Area | Functional Area (Full-time equivalents) | 03/31/2025 Total | 03/31/2024 Total | | :--- | :--- | :--- | | Cloud and software | 13,862 | 13,122 | | Services | 18,639 | 18,763 | | Research and development | 36,902 | 36,540 | | Sales and marketing | 26,671 | 28,032 | | General and administration | 6,949 | 6,723 | | Infrastructure | 5,164 | 4,953 | | SAP Group Total | 108,187 | 108,133 | [Other Disclosures](index=19&type=section&id=Other%20Disclosures) This section provides additional disclosures, specifically detailing share-based payment expenses by functional area and the impact of the transformation program [Share-Based Payment](index=19&type=section&id=(K)%20Share-Based%20Payment) SAP's Q1 2025 share-based payment expenses totaled €420 million, a decrease from Q1 2024, with an additional €13 million in accelerated expenses due to the transformation program Share-Based Payment Expenses | Functional Area (€ millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cost of cloud | -26 | -39 | | Cost of services | -61 | -102 | | Research and development | -136 | -212 | | Sales and marketing | -151 | -258 | | Share-based payment expenses (Total) | -420 | -688 | - In Q1 2025, SAP recognized **€13 million in accelerated share-based payment expenses** due to the transformation program, classified as restructuring expenses[62](index=62&type=chunk)

Group 1 - The core viewpoint is that SAP is expected to continue delivering solid earnings growth, particularly through its successful execution of cloud strategies [1] - The investment approach emphasizes a fundamentals-based strategy, focusing on companies with long-term durability and robust balance sheets rather than merely low multiples [1] - There is a recognition that investing in successful companies carries risks, particularly regarding valuation, but vast development opportunities can lessen the immediate importance of price [1]

I’m a retired Wall Street PM specializing in TMT; since kickstarting my career, I’ve spent over two decades in the market navigating the technology landscape, focusing on risk mitigation through the dot com bubble, credit default of ‘08, and, more recently, with the AI boom. In one word, what I’d like my service to revolve around is momentum.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within th ...

①美财长贝森特：签署重大贸易协议机遇已至美国优先不是"美国独行" 仍坚持强美元政策 美国财长贝森特昨晚就金融体系状况发表讲话，他表示，美国需要实现经济再平衡，更多地依赖制造业 和出口，而非消费，如果外方愿意采取行动，从相反的方向，实现经济再平衡，两个主要经济体就有机 会就贸易问题达成"重大协议"。两大经济体达成全面贸易协议可能需两三年；特朗普不会单方面降低关 税。贝森特重申，美国仍然坚持强美元政策，他认为华尔街可以继续表现良好。他表示，2008年之后的 监管紧箍咒对受监管机构来说过于严苛，他在美国召集了一个叫做金融稳定监管委员会（FSTOC）的 机构，汇集各监管机构，相信通过与美国三大银行监管机构美联储、美国货币总稽核办公室美国联邦存 款保险公司合作，可以建立一个让受监管金融体系再次繁荣的体制。贝森特指出，"美国优先"并不意味 着美国独行，它是呼吁贸易伙伴之间进行更深入的合作和相互尊重，寻求扩大美国在IMF和世界银行等 国际机构中的领导力，通过承担更强的领导角色，恢复国际经济体系的公平性。他指出IMF存在"任务 过度延伸"的问题，呼吁其与世界银行进行"航向修正"，并表示只要两大机构坚守使命，特朗普政府就 热切 ...