SAP provides preview on 2024 reporting updates SAP CFO Dominik Asam hosted a webinar updating some financial disclosures, effective 2024. We detail the five key changes within. Overall we see the changes as broadly neutral, but with two key positives hidden in the detail (discussed below). Mr Asam inherited both 2023 guidance and 2025 mid-term targets on his arrival in Q1''23: having already updated and taken full ownership of the 2025 targets in May he now takes full ownership of the SAP financial communication, stamping his authority on the framework. Two positives hidden in the detail: FCF and divestitures We interpreted two positives hidden in the detail; 1) FCF: comments that some of the sale of receivables could be unwound this financial year ''if SAP has room within the guidance'' in our view hinted Co. is comfortable in its 2023 FCF guidance of EUR4.9bn, with potentially some headroom. Should SAP deliver on 2023 FCF guidance net of part of the factoring unwind we would view this positively, and 2) Divestitures: adjusting the reporting of gains / losses on divestitures (moving below the operating line) indicates SAP could be open to further streamlining of the portfolio in our view. Assuming the rational decision is to divest relative underperforming assets this could help lift Group revenue growth and profitability, while potentially freeing up capital for shareholder returns. SAP to report FY23 24-Jan. Remains European Software top pick. SAP remains our top pick in European Software, having upgraded the stock in March 2023 (Dear Mr Asam). While the stock has re-rated we continue to see upside on the current 2025 horizon, with SAP also well positioned as GenAI winner beyond. EUR150 / USD158 ADR TP unch.