SAP SE — Investor Presentation 2008

Sep 24, 2008

UniCredit German Investment Conference 2008

Werner Brandt CFO, Member of the Executive Board SAP AG

Munich, September 24, 2008

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 forwardlooking statements, which speak only as of their dates.

Agenda

1. SAP Overview

• 1. Q2 and H1 2008 Performance
• 1. Executing On SAP's Growth Strategy
• 1. Enterprise Support
• 1. 2008 2010 Midterm Strategy

SAP – The World's Leading Provider of Business Application Software

The world's leading provider of business application software

• ~75,000 customers in 120 countries
• Broad global reach provides regional balance and a greater addressable market
• Sustained double digit organic growth along with continued peer group share gains

Robust growth with most diversified product portfolio enabled by a fully integrated technology platform

• Leading product and technology innovation with ~15,000 developers
• First to market with next generation enterprise SOA architecture – multi year lead over peers
• Deepest industry functionality with more than 25 industry solutions

Full-Year 2007 Revenue Breakdown SAP Has a Strong Recurring Revenue Base

Broad Global Reach Provides Regional Balance

FY 2007:

Double-digit growth in all regions

EMEA: Outstanding performances in Russia, France, Germany and the Nordics

Americas: Brazil and Mexico were drivers – high double-digit growth*

APJ: Remains a growth engine for SAP, including robust Japan

APJ

in € million | in percent of Software and software related service revenue | change compared to FY2006

EMEA

SAP Offers the Deepest Industry Functionality

Balanced growth across established and focus Industries

Oil & Gas, Consumer Products, Utilities, Banking and Retail top performers

Banking

Selected customer wins: Bank of America, Nationwide, Lloyds TSB, ATB Financial

Public Services

U.S. Postal goes live with landmark HR system - provides HR services to nearly 700,000 employees. Other customers include State of Hessen, City of Paris, MIT, NASA.

Retail

Strong double-digit growth in 2007, license revenues more than doubled in last three years

in € million | in percent of SSRS revenue | change compared to FY2006

SAP Constantly Increased The Number of Accounts Within the Fortune 500 Companies

Note: Public Services accounts are not considered in the Global 500 analysis, Source: Fortune Magazine, Global 500 2007; SAP internal analysis

Growth Opportunities – Large Enterprise and SME

SAP Helps Companies of all Sizes to Run their Business Networks

Agenda

1. SAP Overview

2. Q2 and H1 2008 Performance

• 1. Executing On SAP's Growth Strategy
• 1. Enterprise Support
• 1. 2008 2010 Midterm Strategy

Growth Highlights Second Quarter 2008

• 18th Consecutive Quarter of Double-Digit Growth
• +32%* Non-GAAP software and software related service revenues growth
• +34%* Non-GAAP software revenues growth
• +16%* SAP stand-alone Non-GAAP software and software related service revenues growth
• Solid execution in almost all areas of the business
• Established business continued to show strength
• Volume business in the midmarket continued to grow
• Business Objects was a key contributor to the overall growth for the quarter
• Non-GAAP operating margin increased 50bp* (+120bp* excluding one-time effects)
• Another quarter of strong share gains against competitors
• Company refined guidance to reach upper end of range

Maintained competitive strength in all geographies and market environments

80%+ win rate against next largest competitor

Core industries continued to perform well

Discrete +32% I Process +31% I Service +32%

*at constant currency

Financial Highlights Second Quarter 2008

*at constant currencies (according to guidance format)

© SAP Investor Relations, Page 13

Business Objects Integration and Performance Second Quarter 2008

Revenue synergies: Cross-selling is working as expected

• Strong Business Objects performance across geographies and customer segments
• Business Objects contributed half of SAP's 32%* SSRS revenue growth
• Detailed product roadmap provides investment protection for customers
• First SAP customers have started to standardize their BI solution landscapes on Business Objects
• SAP to leverage Business Objects' strong presence in battleground industries and its midmarket sales channel

Cost Synergies: Organizational integration on track

• Alignment of go-to-market model
• Alignment of infrastructure
• Full alignment and integration of product portfolios started

Non-GAAP Revenue Breakdown by Region** First Half Year 2008

€ millions | yoy percent change | yoy percent constant currency change

* % currency adjusted – actuals 2008 converted with the exchange rates of 2007 / ** location of customers

Continued Strong Share Gains Through Acquisition and Organically

SAP gained share for the 10th Consecutive Quarter Globally

+1.1 PP (sequentially in Q2 2008)

Year on year 7.7 PP

• +4.5 PP (organically)
• +3.2 PP (acquisition)

^* Relevant Enterprise Application Software & Software Related Services Market

Agenda

• 1. SAP Overview
• 1. Q2 and H1 2008 Performance

3. Executing On SAP's Growth Strategy

• 1. Enterprise Support
• 1. 2008 2010 Midterm Strategy

Executing on SAP's Growth Strategy

~50% of SAP's Order Entry from New Products in 2010

~\$75bn

Product Offering for Large Customers Expanded

11,500+ ERP6.0 customers,

Three successfully shipped

prove SAP's unique technology of

non-disruptive software delivery

enhancement packages (EhP)

thereof ~7,200 productive

(+500 p.m.)

industries

Business User Solutions

SME

Business Process Platform

Industry Solutions

SAP CRM 2007 successfully shipped

Rapid growth in focus

SAP Business Suite

Any SAP customers intending to implement or upgrade any time in the next 12 to 18 months should look no further than [SAP] CRM 2007."

"

Future Growth Opportunities in the Established Business

Platform Adoption Creates Up-Sell Opportunities in SAP's Large Customer Base

Enterprise SOA Delivered, Mass Adoption of Business Process Platform is Under Way

Business User Solutions

SME

Business Process Platform

Industry Solutions

SAP Business Suite

Product portfolio transformed

• SAP Business Suite on business process platform
• SAP Business All-in-One on business process platform
• Composition
• SAP NetWeaver Composition Environment available
• Enterprise SOA
• Road map completed
• 170+ reference accounts
• 2,000+ enterprise services available
• Momentum in SAP NetWeaver
• 42,800+ productive systems (+1,000 p.m.)
• 20% increase* in total software revenue to €1.1bn
• Standalone software revenue grew* 49% to €404m

Product Portfolio for Small and Midsize Enterprises Completed

SAP is the undisputed market leader in SME with 36% share

Business Objects Strengthens the Entire SAP Product Portfolio

Business User Solutions
SME	Business User Solutions	Expand #1 position, continue to sell to non-SAP accounts " Bring closed-loop to SAP business performance optimization " customers
Business Process Platform	SME	Embed in SAP's mid-market product portfolio analytic capabilities " Leverage Business Objects' mid-market channel "
Industry Solutions	Business Process Platform	Complement SAP's business process platform with a data " source-agnostic business intelligence platform
	Industry Solutions	Leverage strong Business Objects presence in battleground " (e.g. financial services, retail) industries
SAP Business Suite	SAP Business Suite	Further increase attractiveness of SAP Business Suite with " embedded, operational analytics

Agenda

• 1. SAP Overview
• 1. Q2 and H1 2008 Performance
• 1. Executing On SAP's Growth Strategy
• 4. Enterprise Support
• 1. 2008 2010 Midterm Strategy

The Need For an Expanded Support Concept

• Every customer has mission-critical applications along with integration needs
• SAP landscapes become more sophisticated the more comprehensive & integrated they are
• SAP provides advanced support options to manage innovation and integration, risk and TCO

Managing high speed of innovation and integration, risk and total cost of operations is at the heart of SAP Enterprise Support

SAP Enterprise Support Services Compared to the Retired SAP Standard Support Option

© SAP Investor Relations, Page 26

	SAP Enterprise Support	SAP Standard Support
Extended maintenance for SAP® R/3® 4.6C and SAP R/3 4.7 included, providing additional time to implement end-to-end solution operations
Continuous quality checks (CQCs) as proactive technical quality assessments during implementation, operation, and upgrades
Support advisory center (7x24) as a direct communication channel to SAP, handling important inquiries concerning consulting, support, and scheduling CQCs
Service level agreement covering priority one and two customer messages along with top priority one issues (like a go-live showstopper)
SAP Solution Manager, enterprise edition, with extended functionality for deployment, operation, and continuous improvement and innovation of SAP solutions		Standard edition
Advanced innovation support for SAP enhancement packages and support packages to activate additional functionality and avoid conflicts with customer-specific code and modifications
End-to-end quality management standards and support for customer centers of expertise to establish a single source of truth and validate customer developments related to data integrity, performance, and transactional security
Continuous improvement and innovation like software upgrades, technology updates, legal changes, and access to source code
Problem resolution with global message processing for customer messages of priority one and 24x7acess to the SAP Notes service
Knowledge transfer as part of the community using the SAP Service Marketplace extranet and with specialized offerings for SAP Customer Competence Center locations
Quality management with implementation tools and methodology, the standard edition of the SAP Solution Manager application management solution, and monitoring by the SAP EarlyWatch® Alert service

Bringing SAP Enterprise Support to the Entire Customer Base

	Support Service	Approach
New Customers	Enterprise Support	22% mandatory from February 1, 2008
Additional Licenses	Enterprise Support	22% mandatory from July 5, 2008
Migration Contract	Enterprise Support	22% mandatory from July 5, 2008 (for full contract value)
Installed Base	Enterprise Support	Price adjusted by 8% p.a. (or lower contractual commitment) to 22% over time from January 1, 2009
2008 Deals (1st HY, existing customers)	Enterprise Support	Price adjusted by 8% p.a. (or lower contractual commitment) to 22% over time from January 1, 2010
Large Customers	Product Support for Large Enterprises (pricing at 17%)	Applicable for very large customers who typically have MaxAttention contracts (approx. 120 customers worldwide)

Agenda

• 1. SAP Overview
• 1. Q2 and H1 2008 Performance
• 1. Executing On SAP's Growth Strategy
• 1. Enterprise Support
• 5. 2008 2010 Midterm Strategy

SAP's Growth Strategy Mid-Term Goals

The foundation of SAP's business – highly profitable, organic growth	Organic entry into untapped market,	New business around Business Objects, an SAP company Organizational 2008: " integration and product road map Grow 2008-2010: " significantly faster
Further double-digit software and software " related service revenue growth at constant	innovative volume business model
currencies, continuously outperform market Further operating margin expansion "	Alternative deployment " options ~€100 million 2008: " accelerated investments No more 2009: " accelerated investments revenue Mid-term " potential of ~US\$1bn
Leverage new business investments for the		than established business
established business	margins to levels achieved in the established business	Aiming to rapidly move new business operating

SAP Is Well Positioned For Further Profitable Growth

• Established business expected to continue to deliver double-digit growth (software and software related services revenues at constant currencies)
• Strong customer base migration to SAP ERP 6.0 provides a foundation for further up-selling opportunities
• Rapid SAP NetWeaver adoption delivers revenues today and provides a base for accelerated ecosystem related revenue contribution in the future
• Additional growth opportunities from new businesses
• Acquisition of Business Objects expands SAP's product portfolio, creates access to new buying centers and improves competitiveness in battleground industries
• Top-line growth accompanied by expansion of Non-GAAP operating margin
• Expected Non-GAAP operating margin growth in 2008: 120 170 basis points (at constant currencies), target range 28.5% - 29.0%, Company expects to reach the upper end of the range*
• New maintenance offering "SAP Enterprise Support" to deliver additional, profitable support revenue stream

*) Based on SAP's full-year 2008 business outlook as published on July 29th, 2008

Non-GAAP Revenue Breakdown by Region** Second Quarter 2008

€ millions | yoy percent change | yoy percent constant currency change

* % currency adjusted – actuals 2008 converted with the exchange rates of 2007 / ** location of customers

A Truly Global Company Growing Across all Regions…

EMEA

Non-GAAP software and software related service revenues Q2 2008: +27%*

• Market environment remained sound
• Solid quarter on top of strong performance one year ago
• Business Objects helping to drive pipeline and deal closings
• Germany: Non-GAAP software and software related service revenues for Q2: +11%
• In non-Germany EMEA: Outstanding performances in U.K., Nordics and Italy

Select Customer Wins

Î Carlsberg Breweries A/S, Comet Group Plc, Fiat Services S.p.A., GDF SUEZ, Saudi Electricity Company (SEC), Brenntag Holding GmbH, Liquigas S.p.A. and Dansk Supermarked A/S

A Truly Global Company Growing Across all Regions…

Asia Pacific Japan

Non-GAAP software and software related service revenues Q2 2008: +40%*

• Another outstanding quarter APJ remains a growth engine for SAP
• Market environment is strong
• Japan: weaker than expected due to execution issues that are being addressed - Non-GAAP software and software related service revenue +10%*
• China and India high double-digit growth rates
• Non-Japan APJ Non-GAAP software and software related service revenue +58%*

Select Customer Wins

Î China Petroleum & Chemical, Neptune Orient Lines Ltd, India Oil and Natural Gas Corporation, China Central Television, MOCHIDA PHARMACEUTICAL CO., LTD. and Essel Group.

A Truly Global Company Growing Across all Regions…

Americas

Non-GAAP software and software related service revenues Q2 2008: +37%*

• Good demand for SAP solutions
• U.S.: Non-GAAP software and software related service revenues for Q2: +39%*
• ¾ Execution in U.S. was good especially against competitors as customers continue to consolidate on SAP
• ¾ Business Objects had tremendous traction in the market
• ¾ The midmarket remained a solid growth area with good overall transaction volume
• Continued strength in Latin America and Canada; Brazil again a standout in the LA in the second quarter

*at constant currency

Select Customer Wins

Î Brown Shoe Company, Freeman, Marisa Lojas Varejistas Ltda, The City of Edmonton, H.J. Heinz Company, Hallmark Cards, Inc. and Smurfit-Stone Container Corporation.