SAP SE

Earnings Release • Oct 26, 2011

Third Quarter 2011 Results Release

Walldorf, Germany Wednesday, October 26, 2011

Safe Harbor Statement

Any statements contained in this document that are not historical facts are forwardlooking 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 forward-looking 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.

Agenda

Income Statement

Balance Sheet and Cash Flow Analysis

Outlook

Appendix

7th Consecutive Quarter of Double-Digit Non-IFRS SSRS Revenue Growth

* At constant currencies

Strong Revenue and Profit Growth Despite of Challenging Macroeconomic Situation in 9M/11

* At constant currencies

Software Revenues Increased By 32 % at Constant Currencies in Q3

	IFRS			Non-IFRS
€ millions, unless otherwise stated	Q3/11	Q3/10	¨%	Q3/11	Q3/10	¨%	¨% at cc
Software revenue	841	656	28	841	656	28	32
Support revenue	1,757	1,559	13	1,758	1,595	10	13
Subscription & other SW-rel. serv. rev.	93	101	-8	93	101	-8	-7
SSRS revenue	2,691	2,316	16	2,692	2,352	14	18
Consulting revenue	578	565	2	578	565	2	6
Other service revenue	140	122	15	140	122	15	18
Professional services & other serv. rev.	718	687	5	718	687	5	8
Total revenue	3,409	3,003	14	3,410	3,039	12	15
Total operating expenses	-1,650	-2,287	-28	-2,279	-2,124	7	10
Operating profit	1,759	716	146	1,131	915	24	27
Finance income, net	-2	-14	-86	-9	-14	-36	-86
Profit before tax	1,757	689	155	1,122	880	28
Income tax expense	-505	-188	169	-261	-251	4
Profit after tax	1,251	501	150	860	629	37
Basic earnings per share, in €	1.05	0.42	150	0.72	0.53	36

Top-Line Growth in 9M/11 Combined with Strong Increase in Operating Profit Results in Significant Margin Expansion

	IFRS			Non-IFRS
€ millions, unless otherwise stated	9M/11	9M/10	¨%	9M/11	9M/10	¨%	¨% at cc
Software revenue	2,226	1,757	27	2,226	1,757	27	31
Support revenue	5,093	4,479	14	5,119	4,515	13	15
Subscription & other SW-rel. serv. rev.	278	285	-2	278	285	-2	-2
SSRS revenue	7,597	6,521	17	7,623	6,557	16	18
Consulting revenue	1,726	1,572	10	1,726	1,572	10	12
Other service revenue	410	313	31	410	313	31	33
Professional services & other serv. rev.	2,136	1,885	13	2,136	1,885	13	15
Total revenue	9,733	8,406	16	9,759	8,442	16	18
Total operating expenses	-6,520	-6,359	3	-6,830	-6,057	13	15
Operating profit	3,213	2,047	57	2,929	2,386	23	25
Finance income, net	-34	-25	36	-41	-25	64
Profit before tax	3,145	1,886	67	2,854	2,234	28
Income tax expense	-902	-507	78	-762	-605	26
Profit after tax	2,242	1,379	63	2,091	1,629	28
Basic earnings per share, in €	1.88	1.16	62	1.76	1.37	28

SSRS Revenue Breakdown by Region** Third Quarter 2011

€ millions | yoy percent change

© 2011 SAP AG. All rights reserved. 8

SSRS Revenue Breakdown by Region** First Nine Months 2011

€ millions | yoy percent change

** Based on customer location

Non-IFRS Operating Margin Expanded 310 Basis Points in the Third Quarter 2011

Strong top-line growth paired with continued focus on operational excellence resulted in further margin expansion

• In Q3 2011, non-IFRS operating profit increased by 24% to €1.1bn yoy
• In Q3 2011, non-IFRS operating margin increased 3.1pp to 33.2% yoy
• Currency affected non-IFRS operating margin negatively only by -0.1pp resulting in 33.1% at cc
• Outperformance in revenues dropped down to strong increase of non-IFRS operating profit

* At constant currencies

Non-IFRS Operating Margin Expanded 170 Basis Points in the First Nine Months 2011

Strong top-line growth paired with continued focus on operational excellence resulted in further margin expansion.

• In 9M 2011, non-IFRS operating profit increased by 23% to €2.9bn yoy
• In 9M 2011, non-IFRS operating margin increased 1.7pp to 30.0% yoy
• Non-IFRS operating margin was not affected by currency

Significant Increase of Operating Margin (IFRS) in Q3/11 due to Reduction of TomorrowNow Provision

* At constant currencies

Gross Margin Increased by 190 Basis Points in Q3/11

Non-IFRS, Third Quarter 2011

* Professional services and other services

© 2011 SAP AG. All rights reserved. 13

Gross Margin Expansion Supported by All Line Items in the First Nine Months 2011

Non-IFRS, 9M/11

* Professional services and other services

© 2011 SAP AG. All rights reserved. 14

R&D to Total Revenue Ratio Decreased Significantly in Q3 Due to Ongoing Focus to Improve Operational Efficiency

Non-IFRS, Third Quarter 2011

Increased Profitability Supported by Operational Excellence in All Areas in the First Nine Months

Non-IFRS, 9M/11

Agenda

Income Statement

Balance Sheet and Cash Flow Analysis

Outlook

Appendix

Balance Sheet, condensed September 30, 2011, IFRS

Assets € millions	09/30/11	12/31/10
Cash, cash equivalents and other financial assets	5,061	3,676
Trade and other receivables	2,530	3,099
Other current assets	409	368
Total current assets	8,000	7,143
Goodwill	8,441	8,428
Intangible assets	2,081	2,376
Property, plant, and equipment	1,497	1,449
Other non-current assets	1,220	1,443
Total non-current assets	13,239	13,696
Total assets	21,239	20,839

Equity and liabilities € millions	09/30/11	12/31/10
Financial liabilities	177	142
Deferred income	1,536	911
Provisions	542	1,287
Other liabilities	2,272	2,813
Current liabilities	4,527	5,153
Financial liabilities	4,007	4,449
Provisions	239	292
Other non-current liabilities	1,127	1,121
Non current liabilities	5,373	5,862
Total liabilities	9,900	11,015
Total equity	11,339	9,824
Equity and liabilities	21,239	20,839

Highest Operating Cash Flow for First Nine Months Ever in SAP's History

€ millions, unless otherwise stated	09/30/11	09/30/10	¨
Operating cash flow	2,966	2,052	45%
- Capital expenditure	-329	-200	65%
Free cash flow	2,637	1,852	42%
Free cash flow as a percentage of total revenue	27%	22%	5pp
Cash conversion rate	1.32	1.49	-11%
Days sales outstanding (DSO)	62	70	-8 days

Net Group Liquidity Increased by €1.9bn Driven by Strong Revenues and Good Working Capital Management

€ millions

• y Total net liquidity as of 12/31/10 was €-850m
• 1) Cash and cash equivalents + current investments
• 2) Total Group Liquidity minus bank loans, private placement transactions, and bonds

Agenda

Income Statement

Balance Sheet and Cash Flow Analysis

Outlook

Appendix

Macroeconomic Environment Remains Uncertain – Outlook for FY/11 Unchanged Except Effective IFRS Tax Rate

	SAP's Outlook** FY 2011		Basis for comparison FY 2010
SSRS Revenue (Non-IFRS at cc)	+ 10% to 14%	Company expects to reach the high end of the range.	€ 9.87bn
Operating Profit (Non-IFRS at cc)	€4.45bn to €4.65bn	Company expects to reach the high end of the range.	€ 4.01bn
Operating Margin (Non-IFRS at cc)	+0.5pp to +1.0pp		32.0%
Effective Tax Rate (IFRS)	28.5% to 29.5%		22.5%*
Effective Tax Rate (Non-IFRS)	27.5% to 28.5%		27.3%

* Impacted by 4.7pp due to increased provisions for TomorrowNow Litigation

** Business outlook was provided on July 27th, 2011 at the time of SAP's second quarter 2011 results announcement and is reiterated today - except the guidance for the IFRS tax rate - announcing SAP's third quarter 2011 results

Agenda

Income Statement

Balance Sheet and Cash Flow Analysis

Outlook

Appendix

Non-IFRS Definition

	IFRS Profit Measure	Actual Amounts from 2010	Actual Amounts 9M 2011	Estimated amounts for 2011
+/-	Discontinued activities	€983m	€-711m	€-700m
+	Deferred maintenance write-down	€74m	€26m	€20m to €30m
+	Acquisition related charges	€300m	€333m	€430m to €460m
=	Non-IFRS profit measure until 2010
+	Share-based compensation expenses	€58m	€66m	€80m to €120m
+	Restructuring charges	€3m	€2m	< €10m

Non-IFRS profit measure since 2011

Explanations of Non-IFRS Measures

Adjustments in the revenue line items are for support revenue that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges, sharebased compensation expenses, restructuring expenses and discontinued activities.

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 these adjustments and their limitations as well as our constant currency and free cash flow figures see Explanations of Non-IFRS Measures online (www.sap.com/corporate-en/investors/reports and web message non-IFRS an web message currency effects).