A：AI contributed to SAP's second quarter performance by being embedded as a key pillar in more than 90% of the 50 largest deals, leading to strong confidence for the remainder of the year. This indicates that AI played a crucial role in driving revenue and advancing the company's strategic focus on technology transformation.

A：The launch of the autonomous enterprise is significant because it addresses the challenges enterprises face with regards to understanding business data, processes, and governance. The solution combines the autonomous suite and the business AI platform to help solve these challenges and improve outcomes.

A：The key components of the new business AI platform include the 'Build' pillar for developers to create and extend agents, the 'Context and Reason' pillar which provides agents with business process context and knowledge, and the 'Data Foundation' comprising of SAP Business Data Cloud for broad data access and integration of mission-critical SAP and non-SAP data.

A：The purpose of the AI Agent Hub is to act as a command center to discover, manage, and govern both SAP and non-SAP agents, across various solutions. It provides customers with transparency across a universe of agents for every line of business (LoB) and industry, facilitating the management of the autonomous enterprise.

A：Customers have achieved tangible outcomes with the autonomous suite, such as the reconciliation of unstructured payment data, significant agility in solution build times, and touchless processing with high accuracy for purchasing orders. Additionally, companies have seen faster time to value, reduced migration costs, and improved operational efficiencies.

A：SAP is transforming internally by moving towards an engineering and technology focus, with a particular emphasis on AI at scale. The company is investing in ontology development, doubling down on expert knowledge for every industry and line of business, and targeting complete agent delivery in under three weeks. Furthermore, the company is evolving its operating model to drive AI adoption and is focusing on hiring and upskilling AI talent.

A：Q2 achievements include strong momentum in the business, successful completion of the transformation to the cloud, ongoing AI-based process optimization, and the outlined vision for the autonomous enterprise with AI expanding across the portfolio.

A：SAP faced a complex and uncertain operating environment with the Middle East conflict continuing to affect customer sentiment and decision-making. However, they managed to deliver strong results through focused execution of strategy, progress across strategic priorities, and maintained their commitment to an operating leverage framework.

A：The main financial highlights of Q2 include a current cloud backlog reaching nearly 23 billion euros, up 26%, and sustained improvement in free cash flow generation. Cloud revenue growth slowed year-over-year but is expected to slightly accelerate by the end of the year. Total revenue in Q2 was 9.9 billion euros, up 11%.

A：The year-over-year cloud revenue growth rate declined to 24% in Q2, affected by several quarter-specific effects, notably benefiting the 2026 year-on-year comparison. The strong performance is attributed to the continuing success of software as a service (SaaS) and platform as a service (PaaS) combined.

A：SAP's cloud revenue performance was particularly strong in APJ and EMEA and solid in the Americas region, with several countries like Brazil, France, Germany, Italy, India, South Korea, and Spain having outstanding performance.

A：SAP is investing in AI solutions for both internal adoption and targeted hires in critical roles, as well as accelerating their own AI transformation. The company is applying disciplined governance to manage the cost base and improve spending while sustaining a focus on growth.

A：SAP is maintaining its financial outlook for all top-line parameters and free cash flow. The operating profit outlook has been adjusted by €0.1 billion to reflect the dilutive impact of recent acquisitions, with a projected range of 11.8 to €11.2 billion. The company plans to fully offset the dilutive effect of the recent acquisition on non-IFRS operating income.

A：SAP is focused on driving the AI transformation forcefully while protecting the top line and maintaining discipline on growth. The company is ramping up capacities in development and is applying AI to optimize business processes and ensure sustainable growth trajectories.

A：The strategies implemented to optimize bank for buck and improve efficiency include the introduction of model routing technologies to optimize the bang for the buck and the improvement of the efficiency in bank operations.

A：The impact of the M&A acquisitions is expected to be in excess of 100 million, and there was a debate on whether to upgrade the underlying organic guidance or maintain wiggle room for aggressive growth. The decision was made to absorb the acquisitions within the existing guidance.

A：The strategy for managing costs involves the ability to switch models to always choose the best model for an ideal price outcome, and to avoid using expensive frontier models whenever possible, which helps maintain a healthy cost margin.

A：The company is very busy shifting the backlog from SaaS features and UI enhancements to AI development, utilizing the domain knowledge in data and business processes. Hires of great data scientists to build the ontology layer are expected to further enhance AI development.

A：The company is reshufflings parts of its consulting to focus on driving massive agent extensions and adoption with customers in the hybrid landscapes, emphasizing a hands-on approach.

A：Reskilling the workforce to work with AI is anticipated to lead to a 30% increase in productivity across various areas, and there is potential to reach even higher productivity levels in the future.

A：The plans involve seeing the adoption and monetization of AI solutions, with the potential for effects towards the end of the year or into the next year and beyond. Many customers are looking to modernize their landscapes to enable the implementation and adoption of AI.

A：The recent acquisitions are not expected to significantly impact current guidance, with the latest acquisition having no impact on cloud revenue. The focus is on enhancing the data and ontology layer, and being more confident in hitting the previously outlined guidance despite market volatility.

A：The thought process behind acquiring Prior Labs was to benefit from technologists around tabular models and to utilize their IP to enhance the company's AI capabilities. The strategy involves using the technology to improve and monetize across the customer base, leveraging the learning曲线 from the past two years in developing accurate and reliable AI.

A：The primary uses of mission-critical data acquired through TO are for replenishment, financial forecasting, and workforce planning. This data is essential for these operations and comes from various sources including non-SAP systems like Salesforce and social media.

A：There is a need for a master data governance solution for non-SSA data because the company wants to build a semantic data layer. This solution is being developed by shifting developers to focus on creating data products that include integrating data across multiple systems, such as the ERP and Salesforce, to build semantic modules.

A：'Why labs' plays a role in monetizing the company's agents by providing a more accurate prediction capability through the use of Tableau AI modules. These modules allow the agents to source data from SAP and non-SAP systems without the need to curate data or manage a data pipeline, driving predictions up to 99% accuracy.

A：The company has experienced a 3% year-on-year increase in headcount and a 14% increase in costs for the RD staff. A compensation structure change has been implemented, resulting in a targeted or significant increase in rates for the RD staff. Additionally, there has been a targeted increase in token costs, which are allocated to the functions using the tokens. The company has also hired a few top-caliber people with higher personal expenses. Going forward, the company does not expect further headcount increases and aims to drive productivity in line with token consumption.

A：The company is managing the development backlog from SaaS features to AI development and is transitioning the backlog accordingly. The aim is not to incrementally add to the development backlog but to change it fundamentally to support genetic AI development. This transition period is ongoing, and the customers are increasingly interested in shifting their feature requirements into agent requirements.

A：The recent European ruling on maintenance, which provides more flexibility for customers regarding maintenance options, is not expected to change customer behavior significantly as it pertains to the high value that customers place on being current with cyber patches and compliance. The company has historically offered flexibility and opportunities to adjust software spend based on customers' needs, and this has been formalized in the agreement with the EU. The company can manage any potential impact and remains confident in its ability to phase out support for ECC as customers transition to Cloud and Rise.

A：The impact of recent acquisitions on the company's revenue and contribution to cloud business (CCB) is negligible. The incremental contribution level is less than one percentage point and is not significantly different from the company's cloud revenue growth.

A：The company views the changes in maintenance offerings positively, as they cater to customers who prioritize lower spend over the advantages of maintenance and support. The company has seen a good return from third-party maintenance and is confident that customers who initially try it will tend to stay, despite occasional nervousness over incidents.

A：The company can now reset price levels thanks to AI, moving away from traditional system of records pricing. This presents a unique opportunity to offer outcome value-based pricing and to change the sales strategy by not adhering to historical price levels or the SaaS model. This is expected to accelerate AI cloud revenue and affect cost margins going forward.

A：EBIT growth slowed to 9% in Q2 due to a strong comparison base from Q1 and the effects of a share price drop, which led to higher stock-based compensation. To address this, the company is now optimizing its spending by closely controlling token usage and aligning costs with revenue generation, as evidenced by the reduction in stock-based compensation in Q2 and the measures taken for cost containment.

A：The deceleration in non-operating profit growth was primarily due to lower stock-based compensation in Q2 compared to a strong positive from Q1, as well as a slower cloud revenue growth. This was influenced by prior year comparables, where there was a two percentage point increase in cloud revenue growth from Q1 to Q2, making Q2's comparables less favorable. Other factors include reduced growth in cloud revenue and the negative impact of a new customer acquisition in the prior year.

A：The company expects a mid-teens increase in non-operating profit for the two quarters combined, with measures being taken in the second half of the year to achieve a similar increase. These measures include continued focus on cost control and optimization of headcount, with adjustments to hiring plans to ensure productivity increases and maintain the cost-revenue ratio commitments.