Taking into account the positive financial development and a very solid balance sheet structure, SAP's Supervisory Board approved an increased capital distribution in 2020 as proposed by the Executive Board.
As part of this new program, the company is authorized to carry out share buybacks and/or distribute a special dividend with a total volume of EUR 1.5 billion until 31 December 2020.
The increased capital distribution complements SAP's existing policy of distributing at least 40 percent of profit after tax (IFRS) in the form of the regular dividend.
SAP's Supervisory Board and Executive Board firmly believe that the strategy of investing in innovation and profitable growth, combined with a policy of consistent capital distributions, will maximize shareholder value in the long term.
SAP board spokespeople Jennifer Morgan and Christian Klein said:
"SAP's business process optimization program is resulting in a further increase in our financial performance. We are pleased that SAP can now share this success with its shareholders.
Next year's increased capital distribution underscores the great importance SAP places on providing an appropriate return to our shareholders and a disciplined use of our financial resources."
The Chief Financial Officer of SAP, Luka Mucic, added:
"In addition to an attractive regular dividend, share buy-backs and special dividends are important instruments for increasing the value of the company and sharing the success of our shareholders."
Decisions regarding the timing and instrument of the respective distribution are made by the company, taking into account the market environment, the company's performance and other factors. The distribution of a special dividend requires the approval of the shareholders.
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