Welcome to the 24th Annual General Meeting of Shareholders
Mannheim, Germany – May 25, 2011
Hasso Plattner
Chairman of the Supervisory Board, SAP AG
Bill McDermott
Co-CEO, SAP AG
A Clear Vision "Make the World Run Better"
Major Trends are Converging
Advantage for Our Customers
Sybase Another Successful SAP Acquisition
- Positive effect in the year of the acquisition
- Sybase contribution in just 5 months of 2010:
€329 million
to SSRS revenue*
€434 million
to total revenue*
€150 million to operating income*
* Non-IFRS SSRS revenue = Software and software-related service revenue
Customer Video Bosch (BSH)
Our Brand Value at an All-Time High A Consistent SAP Experience
Performance 2010
Year of Strong Growth
|
SAP's
Outlook*
FY 2010 |
Actual
Performance
FY 2010 |
|
SSRS Revenue w Sybase
SSRS Revenue w/o Sybase
(Non-IFRS at cc) |
+ 9% –
11%
+6% –
8% |
+ 13%
+10% |
|
Operating Margin
(Non-IFRS at cc) |
30% –
31% |
30.5% |
|
Effective Tax Rate
(IFRS) |
27.5% –
28.5% |
22.5%** |
|
* Status as of Q3 2010
** Impacted by ~4.7pp due to increased provisions for TomorrowNow Litigation
SAP Share Price
Increased by More Than 30% Since January 2010
TomorrowNow (TN) Litigation
Influence on IFRS Results 2010, in € Million
| Total revenues |
12,464 |
|
| Total operating expenses |
-9,873 |
|
-
thereof finance costs TN litigation |
|
-981 |
| Operating profit |
2,591 |
|
| Other non-operating expense, net |
-186 |
|
Finance
income, net |
-67 |
|
-
thereof income tax expense
TN
litigation |
|
-12 |
| Profit before tax |
2,338 |
|
| Income tax expense |
-525 |
|
-
thereof income tax expense TN litigation |
|
377 |
| Profit after tax |
1,813 |
|
Net influence: €616 million
Run Better
Jim Hagemann Snabe
Co-CEO, SAP AG
Innovations for Our Customers
Successful Execution of Our Strategy
Innovations On Premise
Growing Our Core Business
- On-Premise solutions:
- SAP Business One
- SAP Business All-in-One
- SAP Business Suite
- SAP Business Analytics
- In 2010 we delivered innovations in all product areas
- In 2010 40,000 customers selected SAP solutions
- whereof 15,000 new customers
Customer Video WMF
Innovations On Premise
Growing Our Core Business
- On-Premise solutions:
- SAP Business One
- SAP Business All-in-One
- SAP Business Suite
- SAP Business Analytics
- In 2010 we delivered innovations in all product areas
- In 2010 40,000 customers selected SAP solutions
- whereof 15,000 new customers
Innovations On Demand
New Deployment Models, New Opportunities for SAP Partners
- SAP Business ByDesign = a comprehensive on-demand suite
- Innovation platform for partner solutions
- Already 500 customers in 9 countries
- Number of customers increases rapidly: twice as fast as it did with SAP R/3
- Innovation platform for SAP: e.g. Sales OnDemand
Customer Video SAP Business ByDesign (Heliotron)
Innovations On Demand
New Deployment Models, New Opportunities for SAP Partners
- SAP Business ByDesign = a comprehensive on-demand suite
- Innovation platform for partner solutions
- Already 500 customers in 9 countries
- Number of customers increases rapidly: twice as fast as it did with SAP R/3
- Innovation platform for SAP: e.g. Sales OnDemand
Innovations On Device
New Applications on Devices of Any Kind
- Mobile deployment options for SAP solutions
- Reach: 4.5 billion mobile devices
- Sybase Unwired Platform 2.0 as an innovation driver
- Already 11 industry-specific mobile solutions
- Open for partner solutions
Innovations for the Entire Portfolio
Technology
- SAP NetWeaver 7.3 delivered
- In-Memory = real-time processing of gigantic volumes of data, directly in main memory
- SAP HANA: only 9 months from concept to delivery
- In-Memory technology will be leveraged across entire SAP portfolio
Innovations Easily Orchestrated
Highest Consistency, Highest Value
n
o |
On Device |
|
|
ti
a
r
t
s
e
h
c |
On Demand |
|
|
r
O |
On Premise |
|
|
| Technology |
|
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Innovations Faster to the Customer
Shorter innovation cycles
Processes accelerated in all product areas
Increased customer focus
Customers involved in all innovation processes
More efficient development
Smaller teams, more transparency and accountability
People at SAP
A Strategic Approach
A new employee strategy
The goal: always the right people with the right skills in the right locations
Promote diversity
Increase the ratio of women in management positions to 25% by 2017
Sustainability: Contributing to a Better World
- New customers in 2010: Coca-Cola, Dow Chemical, Barmer GEK, Continental, etc.
- Reduction of carbon emissions enabled by SAP solutions: estimated 2.5 million tons per year
SAP is becoming a more sustainable enterprise
- Reduction of greenhouse emissions since 2007: -25%
- Ratio of renewable energies already at 48%
- Savings of €170 million over the course of 3 years
SAP promotes education and creates new economic opportunities
- Social responsibility, particularly in Germany
- Foundation of Software Campus: further education of IT managers
Versata Litigation
- Litigation since 2007 concerning technology of the mid-1990ies
- Jury verdict of May 13, 2011: US\$345 million in damages
- All legal options are being considered
First Quarter 2011 5th Consecutive Quarter of Double-Digit Growth
* at constant currencies
Agenda Topics (abbreviated)
-
- Appropriation of the retained earnings
-
- Formal approval of the actions of the Executive Board
-
- Formal approval of the actions of the Supervisory Board
-
- Appointment of the auditors of the financial statements and group financial statements
-
- Amendment to Section 4 of the Articles of Incorporation to reflect changes in the capital structure since the Articles of Incorporation were last amended
-
- Authorization to issue convertible and/or warrant-linked bonds, the cancellation of Contingent Capital IV and Contingent Capital IVa, the creation of new Contingent Capital IV and the corresponding amendment to Section 4 of the Articles of Incorporation
-
- Approval of a Control and Profit Transfer Agreement between SAP AG and a subsidiary
SAP Stock: In 2011 Again Outperformed the Market Value Increased by Almost 15% Since Beginning of the Year
2011 Outlook
Profitable Double-Digit Growth
|
2010 |
SAP's Outlook 2011 |
| SSRS Revenue (Non-IFRS at cc) |
€9.87bn |
+ 10% to 14% |
| Operating Profit (Non-IFRS at cc) |
€4.01bn |
€4.45bn to €4.65bn |
| Operating Margin (Non-IFRS at cc) |
32.0% |
+0.5pp to +1.0pp |
| Effective Tax Rate (IFRS) |
22.5%* |
27.0% to 28.0% |
| Effective Tax Rate (Non-IFRS) |
27.3% |
27.5% to 28.5% |
* Impacted by 4.7pp due to increased provisions for TomorrowNow Litigation
24th Annual General Meeting of Shareholders
Mannheim, Germany – May 25, 2011