Core Insights - The event "2025 SAP-Banglink Robot Industry Demand Matching Conference" focused on the integration of robotics and business intelligence, highlighting industry trends and challenges while showcasing SAP's solutions for empowering robotics companies [2][3] - The conference attracted over 200 participants from the entire robotics industry chain, including major multinational companies and investment institutions, emphasizing the importance of technological innovation, ecological collaboration, and demand matching [2][3] Group 1: Industry Trends and Challenges - The robotics industry is experiencing significant growth, with SAP's Business AI currently serving 34,000 global customers, indicating a strong market demand for intelligent solutions [4] - The industry is not yet at a bubble stage, and companies that remain competitive are likely to lead the next industrial revolution [5] - Challenges faced by enterprises include high-risk scenarios, labor shortages, and high costs of modifying robotic arms, which SAP aims to address through its Joule intelligent agent [9][10] Group 2: Technological Innovations - The conference highlighted advancements in embodied intelligence, which is seen as the next step following electrification and intelligence in technology [6] - SAP's strategy includes a three-layer product architecture that integrates applications, business data cloud, and business AI to drive innovation from efficiency enhancement to model innovation [4][5] - The collaboration between SAP and various robotics companies aims to explore AI co-creation possibilities in areas such as picking, inspection, and manufacturing [10][12] Group 3: Collaborative Efforts and Ecosystem Development - The event served as a platform for over 160 demand matching sessions, facilitating direct communication between upstream component manufacturers, midstream module companies, and downstream integrators [22][24] - Participants noted that the precise matching model effectively shortened cooperation negotiation cycles, enabling companies to quickly find partners and expand market opportunities [24] - The conference emphasized the creation of a supportive ecosystem characterized by demand-driven, technology-supported, and collaborative development [24]

Core Points - The event on November 6, 2025, in Wuzhen, Zhejiang Province, showcased the "Outstanding Cases" for the initiative of building a community with a shared future in cyberspace, highlighting international cooperation in this domain [1][3] - This year marks the 10th anniversary of the vision for a shared future in cyberspace, with the World Internet Conference (WIC) conducting case collections for five consecutive years, attracting global participation [3][4] - Over 300 submissions were received since March 2025, with 12 Outstanding Cases selected based on their alignment with the vision, international influence, inclusiveness, and diverse presentation forms [4][6] Selected Outstanding Cases - SAP Business AI aims to reconstruct enterprise management for predictable growth [6] - "Digital Heritage" Hackathon focuses on global youth collaboration for cultural heritage [7] - ARTES 4.0 serves as a global benchmark for international robotics collaboration [7] - CSGI Global Data Operation Center enhances Belt and Road power cooperation [7] - ASTRON Network builds global cross-border digital trust bridges [7] - Ceramics Bridging Global Cultures fosters cross-cultural exchange in ceramics [7] - RCS Messaging provides a global multi-operator cloud-based service [7] - Siemens Security Defense Framework addresses cybersecurity in the automotive manufacturing industry [7] - PubScholar promotes a new ecosystem for global open science sharing [7] - International Cyber Capacity Building Program by Kaspersky [7] - BGPWatch offers a collaborative platform for BGP routing analysis [7] - Ghana School on Internet Governance (GhanaSIG) supports internet governance education in Africa [7]

Financial Data and Key Metrics Changes - In Q3 2025, cloud revenue rose by 27%, maintaining over 25% growth for five consecutive quarters, with a solid cloud gross margin of approximately 75% [6][22] - Total revenue increased by 11% to €9.1 billion, with the share of predictable revenue rising by two percentage points to 87% [7][24] - Current cloud backlog increased by 27%, exceeding €18.8 billion [22] - Free cash flow increased by 5% to €1.3 billion, while operating profit rose by 19% to €2.6 billion [7][25] Business Line Data and Key Metrics Changes - The cloud ERP suite achieved its 15th consecutive quarter of growth exceeding 30%, representing 87% of cloud revenues and over 100% of the year-over-year increase in cloud revenues [20][22] - Software licenses revenue decreased by 42% in Q3 [23] Market Data and Key Metrics Changes - Cloud revenue performance was particularly strong in APJ and EMEA regions, with Brazil, France, Germany, India, Italy, and South Korea showing outstanding performance [24] - The U.S. public sector business is starting to pick up again, with a major framework contract awarded to SAP by the U.S. government [10][23] Company Strategy and Development Direction - The company aims to accelerate total revenue growth through 2027, leveraging AI as a key enabler of growth [5][19] - SAP's strategy focuses on providing software and cloud solutions without building infrastructure, partnering with strong cloud infrastructure partners instead [11][63] - The company is enhancing its AI capabilities, emphasizing the integration of AI with business processes and contextual data to create high-value use cases [12][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Q4 pipeline, noting that many stalled deals are now returning, particularly in the U.S. public sector and manufacturing [32][34] - The company anticipates reaching the lower end of its cloud revenue outlook for fiscal year 2025 due to delayed bookings but expects to exceed its operating profit outlook [26][25] Other Important Information - SAP closed its acquisition of SmartRecruiters, enhancing its capabilities in talent acquisition [22] - The company is seeing significant interest in its new software and cloud offerings for highly regulated customers and governments [12] Q&A Session Summary Question: Update on demand backdrop in U.S. public sector and manufacturing - Management noted positive early signs in the U.S. public sector and a strong Q4 pipeline, with many deals returning [32][34] Question: Insights on backlog and cloud revenue expectations - Management expressed confidence in achieving a good Q4 and picking up stalled pipeline deals, indicating optimism for cloud revenue growth [36][54] Question: Uptake of SAP ERP transition option - Management highlighted positive momentum in the pipeline and noted that the transition option is helping customers move to the cloud [40][41] Question: Competitive position versus Oracle - Management emphasized that SAP's strategy remains effective, focusing on value creation rather than infrastructure scaling [63][66] Question: Free cash flow guidance and conversion - Management indicated that Q4 free cash flow may be impacted by tax cash out phasing and other working capital factors [58][59]

Financial Data and Key Metrics Changes - In Q3 2025, cloud revenue rose by 27%, maintaining over 25% growth for five consecutive quarters, with a solid cloud gross margin of approximately 75% [6][22] - Total revenue increased by 11% to EUR 9.1 billion, with the share of predictable revenue rising by 2 percentage points to 87% [7][22] - Current cloud backlog increased by 27% to exceed EUR 18.8 billion [22] - Free cash flow increased by 5% to EUR 1.3 billion, while operating profit rose by 19% to EUR 2.6 billion [7][24] Business Line Data and Key Metrics Changes - The cloud ERP suite achieved its 15th consecutive quarter of growth exceeding 30%, representing 87% of cloud revenues and over 100% of the year-over-year increase in cloud revenues [20][22] - Software licenses revenue decreased by 42% in Q3 [23] Market Data and Key Metrics Changes - Cloud revenue performance was particularly strong in the APJ and EMEA regions, with Brazil, France, Germany, India, Italy, and South Korea showing outstanding performance [23] - The U.S. public sector business is starting to pick up again, with a major framework contract awarded to SAP by the U.S. Army [10][23] Company Strategy and Development Direction - The company aims to accelerate total revenue growth through 2027, leveraging AI as a key enabler for growth [5][19] - SAP's strategy focuses on providing software and cloud solutions without building infrastructure, partnering with cloud infrastructure providers instead [11][66] - The company is enhancing its AI capabilities by integrating AI into business processes and developing AI agents to automate and optimize operations [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Q4 pipeline, noting that many stalled deals are now progressing, particularly in the U.S. public sector and manufacturing [32][34] - The company anticipates reaching the lower end of its cloud revenue outlook for fiscal year 2025 due to delayed bookings but expects to exceed previous targets for free cash flow [26][25] Other Important Information - SAP closed its acquisition of SmartRecruiters, enhancing its capabilities in talent acquisition [22] - The company is focusing on high-value AI use cases, emphasizing the importance of combining large language models with business processes and contextual data [12][49] Q&A Session Summary Question: Update on demand backdrop and backlog - Management noted positive early signs in the U.S. public sector and manufacturing, with a strong Q4 pipeline [32][34] Question: Delay in backlog and cloud revenue expectations - Management expressed confidence in achieving a good Q4 and picking up stalled pipeline deals [36][54] Question: Uptake of SAP ERP transition option - Management indicated positive momentum in the pipeline, with high interest in the transition option [40][41] Question: Competitive position versus Oracle - Management emphasized the strength of SAP's software and cloud offerings, stating that their strategy is proven and effective [62][66] Question: Free cash flow guidance - Management highlighted that Q4 cash flow may be impacted by tax payments and working capital fluctuations, but remains confident in achieving the target [58][59]

Financial Data and Key Metrics Changes - In Q3, cloud revenue rose by 27%, marking five consecutive quarters of growth exceeding 25% [7][8] - Total revenue growth was 11%, with current cloud backlog increasing by 27% [8][30] - Free cash flow increased by 5%, while operating profit rose by 19% [8][34] - Total revenue reached EUR 9.1 billion, up 11%, with predictable revenue rising to 87% [33][34] Business Line Data and Key Metrics Changes - The Cloud ERP suite delivered 31% growth in Q3, representing 87% of cloud revenues [30] - Software licenses revenue decreased by 42% in Q3 [32] - Non-IFRS cloud gross margin expanded by 1.1 percentage points to 75.1% [34] Market Data and Key Metrics Changes - Cloud revenue performance was particularly strong in APJ and EMEA regions, with Brazil, France, Germany, India, Italy, and South Korea showing outstanding performance [33] - The U.S. public sector is showing early signs of improvement, with a major framework contract awarded to SAP by the U.S. Army [32][34] Company Strategy and Development Direction - The company aims to accelerate total revenue growth through 2027, leveraging AI as a key enabler [7][28] - SAP's strategy focuses on software and cloud solutions rather than building infrastructure, partnering with strong infrastructure partners instead [16][88] - The introduction of AI agents and tools is central to enhancing customer value and operational efficiency [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Q4 pipeline, indicating a strong recovery in the U.S. public sector and manufacturing [47][51] - The company anticipates reaching the lower end of its cloud revenue outlook for fiscal year 2025 due to delayed bookings [36][37] - Management remains optimistic about the potential for revenue acceleration in 2026, supported by a robust pipeline [77][78] Other Important Information - The acquisition of Smart Recruiters was completed, enhancing SAP's capabilities in talent acquisition [31] - The company is focusing on high-quality data and AI integration to drive business value [66][70] Q&A Session Summary Question: Update on demand backdrop in U.S. public sector and manufacturing - Management noted positive early signs in the U.S. public sector and a strong Q4 pipeline, indicating a recovery in these sectors [45][47] Question: Insights on backlog and cloud revenue expectations - Management expressed confidence in the Q4 pipeline and the potential for a better exit rate for CCB growth than previously expected [51][52] Question: Uptake of SAP ERP transition options - Management indicated positive momentum in the pipeline and high interest in the transition options, with expectations for initial deals in Q4 [54][58] Question: Competitive position versus Oracle - Management emphasized the strength of SAP's strategy and the value provided to customers, asserting that the current approach is effective [86][88] Question: Free cash flow guidance and conversion - Management highlighted the impact of tax cash out phasing and working capital dynamics on free cash flow expectations for Q4 [80][84]

Core Insights - DataXstream's OMS+ Intelligent Automation (IA) has been certified by SAP as built with SAP Business AI, confirming its compliance with SAP's standards for responsible and enterprise-ready AI [1][4] - The certification signifies a significant advancement in integrating AI within SAP environments, enhancing order management processes for SAP customers [2][3] Product Features - OMS+ IA enhances DataXstream's sales order management platform with intelligent automation, enabling SAP customers to streamline complex order processes and accelerate fulfillment [3] - Key capabilities of OMS+ IA include document automation, an IA chatbot for task completion, blueprint scraping for generating Bills of Materials, typeahead search for real-time predictions, and material & customer matching for live data retrieval [5] Company Background - DataXstream is an SAP Endorsed App Partner focused on developing solutions that maximize the ROI of SAP infrastructure, with products available in the SAP Store [6] - The company has also achieved Premium Certification for its OMS+ Cloud solution for SAP S/4HANA Cloud Public Edition, becoming the first partner to complete SAP's scalable delivery process for the Public Cloud [8]

Financial Data and Key Metrics Changes - In Q2, cloud revenue rose by 28%, marking an increase of two percentage points compared to Q1 [7][28] - Total revenue growth accelerated to 12% [8][34] - Current cloud backlog grew by 28% in Q2, reaching €18.1 billion [28][34] - Operating profit surged by 35%, reflecting improvements in the cost base due to the transformation program [9][33] - Non-IFRS operating profit increased to €2.6 billion [34] Business Line Data and Key Metrics Changes - The Cloud ERP suite continued to drive growth, achieving 34% growth in Q2, representing 86% of total cloud revenue [29][34] - Software licenses revenue decreased by 13% in Q2, aligning with the company's strategy to transition to cloud-based models [31][34] Market Data and Key Metrics Changes - Cloud revenue performance was particularly strong in the APJ and EMEA regions, with notable performances in Brazil, Chile, France, India, Italy, South Korea, and Spain [32][34] - The Americas showed solid performance, although specific figures were not disclosed [32] Company Strategy and Development Direction - The company is focusing on product innovation and increasing productivity through business AI [6][25] - SAP aims to strengthen its portfolio with data and AI innovations while maintaining cost discipline [26][35] - The partnership with Alibaba is expected to enhance market potential in China, targeting both existing and new customers [10][61] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing uncertainty in global markets but expressed confidence in the company's pipeline for the second half of the year [6][30] - The company is preparing for less favorable outcomes by focusing on elements within its control to protect its bottom line and free cash flow [31][35] - Management remains optimistic about sustaining momentum and closing the year strongly despite macroeconomic volatility [35] Other Important Information - The company released its first 14 AI agents in the first half of the year, with plans to increase this number to 40 by year-end [19][20] - The non-IFRS cloud gross margin expanded by 1.8 percentage points to 75.2% [33] Q&A Session Summary Question: Insights on operating margin and EBIT growth for the second half - Management highlighted that the strong performance in operating profit was partly due to a €331 million improvement in stock-based compensation, which is expected to have easier comparisons in the first half [42][44] Question: Long-term sustainability of margin improvements - Management expressed confidence in maintaining operating leverage ratios of 80-90% for the coming years, despite some continuous adjustments in workforce [54][56] Question: Details on the Alibaba partnership and its impact - The partnership aims to enhance SAP's presence in China, focusing on both large enterprises and the upper mid-market [61][62] Question: Impact of transformation credits on cash flow - Transformation credits are amortized over the term of the deal, and while they may create initial cash conversion challenges, they are neutral over the life of the transaction [68][70] Question: Demand impact on CCB and cloud revenue - Management noted that while there is a slight deceleration expected, the pipeline coverage remains strong, and customers are responding positively to business cases [80][100]

Financial Data and Key Metrics Changes - In Q2 2025, cloud revenue rose by 28%, an increase of two percentage points compared to Q1 2025 [8][27] - Total revenue growth accelerated to 12%, reaching €9 billion [9][33] - Operating profit surged by 35%, reflecting improvements in the cost base due to transformation programs [9][32] - Current cloud backlog grew by 28% to €18.1 billion [27][33] - Non-IFRS cloud gross margin expanded by 1.8 percentage points to 75.2% [32] Business Line Data and Key Metrics Changes - The Cloud ERP suite continued to drive growth, achieving 34% growth in Q2, representing 86% of total cloud revenue [27][32] - Software licenses revenue decreased by 13% in Q2, aligning with the company's strategy to transition customers to cloud solutions [30] Market Data and Key Metrics Changes - Cloud revenue performance was particularly strong in the APJ and EMEA regions, with notable performances in Brazil, Chile, France, India, Italy, South Korea, and Spain [31] - The US public sector and manufacturing sectors experienced elongated sales cycles due to geopolitical uncertainties [28][30] Company Strategy and Development Direction - The company is focusing on product innovation and increasing productivity through business AI [7][25] - SAP aims to strengthen its portfolio with data and AI innovations while maintaining cost discipline [25][34] - The partnership with Alibaba is expected to enhance market penetration in China, targeting both large enterprises and the upper mid-market [10][60] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing uncertainty in global markets but expressed confidence in the company's pipeline for the second half of the year [7][34] - The company is preparing for potential less favorable outcomes by focusing on elements within its control to protect its bottom line [30] - Management remains optimistic about sustaining momentum and closing the year strongly despite macroeconomic volatility [34] Other Important Information - The company has released over 100 pre-built SAP managed data products, with plans to double that by year-end [21] - The internal adoption of business AI is expected to further enhance productivity and operational efficiency [22][24] Q&A Session Summary Question: Insights on operating margin and EBIT growth for the second half of the year - Management highlighted that the strong performance in the first half was significantly influenced by a €331 million improvement in stock-based compensation, which is expected to normalize in the second half [41][42] Question: Long-term sustainability of margin improvements - Management expressed confidence in maintaining operating leverage ratios between 80% to 90% for the coming years, despite potential fluctuations in expenses [52][53] Question: Details on the Alibaba partnership and its impact - The partnership aims to leverage Alibaba's presence in China to enhance SAP's cloud offerings, targeting both multinational companies and local tech firms [60][63] Question: Impact of macroeconomic factors on demand - Management noted that elongated deal cycles are primarily due to stricter cost controls in certain industries, but emphasized that the pipeline remains strong [97][100] Question: Cash flow and transformation credits - Management explained that transformation credits are amortized over the term of deals and do not significantly impact cash conversion in the long term [66][67]

Core Insights - Infosys has launched the Infosys Enterprise Innovation Lab for SAP Solutions in Düsseldorf, Germany, aimed at accelerating enterprise transformation through AI, data, and cloud solutions [1][2][3] - The lab will facilitate co-creation of tailored solutions to address business challenges and enhance operational efficiency, financial performance, and decision-making through real-time data insights [2][3] Group 1: Lab Features and Offerings - The lab will provide access to Infosys Topaz and SAP Business AI, enabling organizations to discover possibilities and develop practical applications [5] - It offers a collaborative workspace for customers and experts to co-create AI solutions tailored to specific business needs [5] - The lab aims to create a foundation for designing AI and data strategies that align with business goals through clear plans and use cases [5] Group 2: Strategic Collaboration - Infosys and SAP are collaborating to revolutionize business transformation by integrating enterprise-wide data to fuel AI-based solutions [2][3] - The partnership emphasizes the importance of faster, flexible transformations with lasting value, leveraging AI-powered innovation and seamless cloud adoption [3] - Infosys has over 25 years of expertise in SAP software transformation, which will be utilized to develop cloud and AI solutions across various industries [3] Group 3: Business Outcomes - The collaboration aims to empower businesses to leverage the full potential of cloud, data, and AI, resulting in enhanced efficiency, improved decision-making, significant cost savings, and future-readiness [3] - Solutions developed in the lab will be available across Infosys' global network of over 12 Living Labs, expanding the reach and impact of these innovations [2]

Core Viewpoint - In the ongoing digital transformation, companies must either become self-disruptors or risk becoming mere spectators of the era. SAP's AI transformation has successfully aligned technology, ecosystem, and business model evolution, leading to robust growth through strategic investments and customer-centric product iterations [1][2][22]. Group 1: SAP's Transformations - SAP has undergone four significant transformations since its inception in 1972, each aligned with major technological waves: the internet, mobile computing, cloud technology, and currently, artificial intelligence [2][13]. - The first transformation (1999-2009) involved SAP's response to the internet, marked by the launch of mySAP.com, which integrated e-commerce and supply chain management [4][5][8]. - The second transformation (2010-2015) was characterized by the acquisition of Sybase for mobile capabilities and the integration of cloud solutions, including the purchase of SuccessFactors [11][12][14]. - The third transformation (2015-2020) focused on full cloud integration with the launch of S/4HANA and the SAP Cloud Platform, which significantly increased cloud subscription revenue [16][17]. - The ongoing fourth transformation (2020-present) emphasizes the integration of generative AI into SAP's offerings, including the GROW with SAP solution launched in partnership with Amazon Web Services [18][21]. Group 2: Financial Performance - SAP's cloud ERP suite revenue reached €14.166 billion in 2024, up from €10.626 billion in 2023, reflecting a strong growth trajectory [26]. - Total revenue for SAP in 2024 was €34.176 billion, compared to €31.207 billion in 2023, indicating a robust overall performance [26]. - The cloud business revenue growth rate was 25% year-over-year in Q2 2024, with a total order volume of €148 billion, showcasing the effectiveness of SAP's integration strategies [21][25]. Group 3: AI Strategy and Investments - SAP plans to invest nearly €1 billion over the next two years to develop AI use cases and enhance its business transformation toolkit through acquisitions [38]. - The company has made significant acquisitions to bolster its AI capabilities, including LeanIX and WalkMe, which support its "continuous business transformation" strategy [19][24]. - SAP's AI strategy includes the integration of AI into core business processes, with a focus on enhancing user efficiency and automating tasks across various business functions [35][37]. Group 4: Challenges and Solutions - Prior to its AI transformation, SAP faced challenges such as low adoption rates of early AI tools and difficulties in integrating AI with core business processes [27][30]. - The company has recognized the need for robust risk management frameworks to address potential issues related to algorithm biases and data quality [40][41]. - SAP's approach to AI has evolved from initial testing to full integration, emphasizing practical applications and compliance with ethical standards [31][34].