Debt Investors Call Fourth-Quarter 2015

Walldorf, Germany Wednesday, February 10th 2016

Safe Harbor Statement

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forwardlooking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission ("SEC"), including SAP's most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

Income Statement Outlook -- 2016 & Midterm ambitions 2017, 2020 Balance Sheet and Cash Flow Analysis Other Topics

SAP outpaces market with record 2015 cloud and software revenue decisively beating guidance

	Outlook FY 2015	Actual performance 2015
Cloud subscription and support revenue (Non-IFRS at cc)	€1.95bn to €2.05bn	€2.00bn
Cloud and software revenue (Non-IFRS at cc)	+ 8% to 10%	+ 12%
Operating profit (Non-IFRS at cc)	€5.6bn to €5.9bn	€5.903bn

Effective tax rate (IFRS)	25% to 26%	+ 23.3%
Effective tax rate (Non-IFRS)	26.5% to 27.5%	+ 26.0%

All 2015 figures in this presentation are non-IFRS approximate due to its preliminary nature

Exceptional momentum in 2015 – SAP is unique in combining a rapidly expanding cloud business and a growing core

Cloud and software revenue

20% to €17.23bn (+12% at cc) in FY

Cloud

Cloud subscription and support: +109% to €2.30bn (€2.00bn at cc) in FY
New cloud bookings: tremendous momentum with +103% (€0.88bn) in FY; +75% (€0.34bn) in Q4
§ Cloud subscription and support backlog: +45% yoy €3.7bn at year-end
§ Combination of deferred and backlog: € 1.0bn+ €3.7bn = €4.6bn

Core

SAP S/4HANA provides companies with the digital core
Adoption surges: >2,700 customers, more than doubling the number of customers in Q4
Software license: +10% to €4.84bn (+4% at cc)
Resilient software support: +14% to €10.09bn (+7% at cc)

All revenue figures are Non-IFRS reported

Software license and cloud subscription order entry* Q4: €3.2bn or +25% yoy at cc | FY: €7.2bn or +18% yoy at cc | 1/3 from cloud subscription

Strong growth across all regions FY 2015

Americas Cloud +120% Cloud and software +31%

EMEA Cloud +83% Cloud and software +12%

APJ Cloud +99% Cloud and software +20%

All revenue figures are Non-IFRS reported

Both core and cloud gross margins expand – Mix shift weighs on blended cloud and software gross margin

Continued fast growth in the cloud cloud revenue share increases versus software and support
Bigger cloud revenue share combined with lower profitability weighs on blended cloud and software gross margin (mix shift effect)

With the strong top line and the success of our business transformation we generated the highest non-IFRS operating profit in SAP's history

Beating high end of operating profit outlook due to the success of our business transformation and improving profitability of our cloud offering
Continued focus on increasing absolute operating profit – SAP has a broader portfolio of business models compared to pure play competitors
SAP is driving both traditional and cloud business more effectively and efficiently – both are contributing to continuous profit expansion

Financial Overview FY 2015

$\epsilon$ millions, unless otherwise stated		IFRS.			Non-IFRS
Revenue Numbers	FY/15	FY/14	Δ%	FY/15	FY/14	$\Delta\%$	$\Delta\%$ at cc
Cloud subscriptions and support	2,286	1.087	110	2,296	1.101	109	82
Software licenses	4.838	4.399	10	4,839	4,399	10	4
Software support	10,094	8,829	14	10,094	8,834	14
Software licenses and support	14,931	13,228	13	14,933	13,233	13	6
Cloud and software	17,218	14,315	20	17,229	14,334	20	12
Services revenue	3,580	3,245	10	3,580	3,245	10	$\overline{2}$
Total revenue	20,797	17,560	18	20,809	17,580	18	10
Operating Expense Numbers
Total operating expenses	$-16,546$	$-13,230$	25	$-14,463$	$-11,924$	21	12
Profit Numbers
Operating profit	4,251	4,331	$-2$	6,346	5,638	13	5
Finance income, net	$-5$	$-25$	$-80$	$-5$	-25	$-80$
Profit before tax	3,990	4,355	$-8$	6,085	5,662	$\overline{7}$
Income tax expense	$-929$	$-1,075$	$-14$	$-1,580$	$-1,479$	7
Profit after tax	3,061	3,280	$-7$	4,505	4,182	8
Operating margin in %	20.4	24.7	$-4.2$ pp	30.5%	32.1%	$-1.6$ pp	$-1.5$ pp
Basic earnings per share, in $\epsilon$	2.56	2.75	$-7$	3.77	3.50	8

Income Statement Outlook – 2016 & Midterm ambitions 2017, 2020 Balance Sheet and Cash Flow Analysis Other Topics

Raising 2017 midterm ambition

SAP's fast growing cloud business changes the revenue mix Driving a higher share of more predictable revenue*

FY 2016 – Additional outlook information and non-IFRS adjustments

The company expects a full-year 2016 effective tax rate (IFRS) between 22.5% to 23.5% (2015: 23.3%) and an effective tax rate (non-IFRS) between 24.5% to 25.5% (2015: 26.0%).

IFRS Profit Measure	Actual Amounts FY/2015	Est. Amounts for FY/2016
Revenue adjustments	€11m	<€20m
Share-based payment expenses	€724m	€600m to €640m
Acquisition-related charges	€738m	€690m to €740m
Restructuring charges	€621m	€40-60m
Sum of all adjustments	€2,095m	€1,350m to €1,460m

SAP has provided its non-IFRS estimates for the full-year 2016. For a more detailed description of all of SAP's non-IFRS measures and their limitations as well as our constant currency and free cash flow figures see Non-IFRS Measures and Estimates online.

Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS number of the previous year's respective period.

For a more detailed description of all of SAP's non-IFRS adjustments and their limitations as well as our constant currency and free cash flow figures see Non-IFRS Measures and Estimates online.

Income Statement Outlook – 2016 & Midterm ambitions 2017, 2020 Balance Sheet and Cash Flow Analysis Other Topics

Balance sheet, condensed December 31, 2015, IFRS

Assets € millions	12/31/15	12/31/14	Equity and liabilities € millions	12/31/15	12/31/14
Cash, cash equivalents and other financial assets	3,770	4,006	Trade and other payables	1,111	1,032
			Provisions	299	150
Trade and other receivables	5,288	4,342	Other liabilities	4,495	5,711
Other non-financial assets and tax assets	695	650	Deferred income	1,999	1,680
Total current assets	9,751	8,999	Current liabilities	7,903	8,574
Goodwill	22,689	21,005	Financial liabilities	8,681	8,980
			Provisions	180	151
Intangible assets	4,280	4,604	Deferred income	108	78
Property, plant, and equipment	2,195	2,102	Other non-current liabilities	1,220	1,248
Other non-current assets	2,476	1,859	Non current liabilities	10,188	10,457
			Total liabilities	18,091	19,031
Total non-current assets	31,640	29,566	Total equity	23,300	19,534
Total assets	41,391	38,565	Equity and liabilities	41,391	38,565

Operating cash flow exceeded €3.6bn while free cash flow marked an 9% increase year-over-year

€ millions, unless otherwise stated	01/01/15 - 12/31/15	01/01/14 - 12/31/14	∆
Operating cash flow	3,639	3,499	+4%
- Capital expenditure	-637	-737
Free cash flow	3,001	2,762	+9%
Free cash flow as a percentage of total revenue	14%	16%	-2pp
Cash conversion rate	1.19	1.07	+11%
Days sales outstanding (DSO in days)	71	65	+6

Stable total group liquidity while significantly repaying debt and paying dividend

Income Statement Outlook -- 2016 & Midterm ambitions 2017, 2020 Balance Sheet and Cash Flow Analysis Other Topics

Financing Strategy for Group Treasury 2016

Debt Repayments 1

USPP USD 600m June 2016
Substantial repayment of Concur term loan- as cash flows permit
è Overall reduction in gross debt and improvement in group net liquidity

Acquisitions 2

No major acquisitions
Bolt-on acquisitions possible

Maintain Rating @ Stable 3

Contact Details for Investor Questions

Investor Relations

Stefan Gruber – Head of Investor Relations SAP SE

• +49 6227 7-52727

Astrid Stroemer

+49 6227 7-52167
Responsibilities for Institutional Investors and Analysts, Europe

John Duncan

+1 (212) 653-1413
Responsibilities for Institutional Investors and Analysts, US

Scott Smith

+1 (650) 461-2905
Responsibilities for Institutional Investors and Analysts, US

Global Treasury

Klaus Heizmann

+49 6227 7-44289
Responsibilities include bond investors
+353 (1) 471-7307
Responsibilities include USPP investors

For all email enquiries contact [email protected]

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