SAP SE — Earnings Release 2014

Jan 20, 2015

Bill McDermott CEO

Safe Harbor Statement

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2014: A year of fast expansion in cloud & profitable growth

Top Line Performance

• Cloud revenue +45%
• Run rate now exceeds €1.7B
• Cloud deferred and backlog €3.0B, €1.4B added in 2014
• SSRS revenue up 7% @cc despite less upfront and more ratable new business

Operating Income

• Non-IFRS operating profit increased to €5.64B

• Operating profit increase despite less upfront and more ratable revenue and increased cloud investment

• Rapid transition to cloud and growing core

• Fastest growing cloud company at scale with most cloud users

• 1,850 Suite on HANA customers up >100% from 1 year a year ago

• World's largest business network 1.7M companies transacting >\$700B

Revenue + deferred + backlog growth Market share gains vs. key competitors

All revenue figures are Non-IFRS reported unless otherwise stated, @cc = constant currencies 3

SAP is leading the Cloud transition in the industry

BUSINESS NETWORK BUSINESS TO BUSINESS COLLABORATION

SAP HANA CLOUD PLATFORM Integration | Development | Customers | Partners

SAP HANA broad adoption across industries and use cases

HANA is the great Simplifier

Differentiators

• Real-time
• Massive simplification and scale
• Open

Customers

• More than a database
• Big data ready and proven

>5,800 SAP HANA

>1,850

SAP Business Suite on HANA Customers

World's largest Business Network to innovate the future of business within and between companies – and people

Massive cost savings AND the world's largest and most efficient sales channel

1.7 million companies transacting >\$700 billion

Strong growth across all regions FY 2014 - Cloud Subscription Revenue & SSRS

All revenue figures are Non-IFRS reported unless otherwise stated, @cc = constant currencies

SAP is helping the world's leading companies to Run Simple

2015 outlook and path to 2020

Fast cloud growth, growing highly predictable revenue and operating profit

• Growing cloud business 7X (2014–2020), reflecting organic growth rates unmatched for a company of our scale
• Adding close to €10bn total revenue by 2020
• In 2018 cloud overtakes license SAP will reach a scale in its cloud business which clears the way for operating profit expansion

ambition

2020

€7.5 to €8bn Cloud subs

€26 to €28bn Total revenue

70% to 75% Support + Cloud subs – share of revenue

€8 to €9bn Operating profit

FY 2014 – Exceptional growth in Cloud

	SAP's Outlook at the beginning of FY 2014	SAP's Outlook after Q3 for FY 2014	Actual Performance 2014
Cloud subscription and support revenue (Non-IFRS @cc)	€950m to €1bn Upper end was +32%	€1,040m to €1,070m Upper end of this range represents a growth rate of +41%	€1,098m*
Software and Software-related Service Revenue (Non-IFRS @cc)	+6% to +8%	+6% to +8%	+7%
Operating Profit (Non-IFRS @cc)	€5.8bn to €6.0bn	€5.6bn to €5.8bn	€5.63bn
Effective Tax Rate (IFRS)	26.0% to 27.0%	26.0% to 27.0%	24.8%
Effective Tax Rate (Non-IFRS)	27.5% to 28.5%	27.5% to 28.5%	26.2%

© 2015 SAP SE. All rights reserved. 11 * Includes Concur contribution of €45m (@cc)

Unique combination of fast growing Cloud & solid core business

• Cloud revenue: +45% yoy (+45% @cc)
• Annual run rate: >€1.7bn / \$2.0bn
• Deferred revenue: €699m, +56% yoy (+40% @cc)
• Calculated billings: +104% yoy (+78% @cc)
• Backlog: +94% yoy >€2.3bn for FY

• Order entry for new business in cloud was ~1/3 of software revenue for FY

• Stable core business with software & support revenue: +4% (+5%@cc)

• SW revenue: -3% (-3%@cc)
• Resilient support revenue: +7% (+8%@cc)

SSRS +7% @cc achieving FY guidance

Broad Cloud offering with three different business models

Public Cloud

• Cloud applications with mainly SuccessFactors, CEC*, Suite solutions

• Classical subscription SaaS model is the most comparable cloud offering to pure cloud vendors

• Market leading with Ariba, Fieldglass and Concur

• Steady predictable revenue stream with a very high stickiness
• Stable revenue growth rates

Private Cloud

• Supporting mission critical processes
• High set-up costs
• Longer time to revenue
• Order entry will flow into future revenue

Powerful mix shift to high growth Cloud business leading to higher share of predictable revenue

Cloud subscriptions and support revenue

Non-IFRS, in € million

Combined total revenue

Non-IFRS, in € billion Share of Cloud subscriptions & support and support revenue

Gross margin development 2014

Operating profit grew 3% to €5.63bn* while significantly expanding our Cloud delivery capabilities Non-IFRS, FY/14

© 2015 SAP SE. All rights reserved. 16 * At constant currencies

Net liquidity declined sequentially by €6.7bn to €-7.7bn mainly due to the debt financed acquisition of Concur

ONE Service and income statement amendment Impact on FY 2014 numbers, Non-IFRS

SAP will amend the structure of its income statement, starting with Q1 2015

Cloud subscriptions and support	€ 1,101	Cloud subscriptions and support	€ 1,101
Software	€ 4,399	Software licenses	€ 4,399
Support	€ 9,373	Software support €-539	€ 8,834
Software and support	€ 13,773	Software licenses and support	€ 13,233
Software and software-related service revenue	€ 14,874	Cloud & Software	€ 14,334
Prof. services and other service revenue	€ 2,706	€+539 Services	€ 3,245
Total revenue	€ 17,580	Total revenue	€ 17,580

All amounts in € million. Due to rounding, numbers may not add up precisely.

Outlook for the full year 2015

	SAP's Outlook FY 2015	Basis for Comparison 2014
Cloud subscription and support revenue (Non-IFRS at cc)	€1.95bn to €2.05bn (upper end +86*)	€1.10bn
Cloud & Software Revenue** (Non-IFRS at cc)	+ 8% to 10%	€14.33bn
Operating Profit (Non-IFRS at cc)	€5.6bn to €5.9bn	€5.64bn
Effective Tax Rate (IFRS)	25.0% to 26.0%	24.8%
Effective Tax Rate (Non-IFRS)	26.5% to 27.5%	26.2%

© 2015 SAP SE. All rights reserved. 19 ** Formerly known as Software and Software-related Service Revenue

2015 outlook and path to 2020

Growing a more predictable revenue business while steadily increasing operating profit