SAP SE — Investor Presentation 2008

Sep 18, 2008

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

Stefan Gruber Head of Investor Relations

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.

1. SAP Overview and H1 2008 Highlights

• 1. Executing On SAP's Growth Strategy
• 1. Summary

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

SAP Gained Share For The 10th Consecutive Quarter Globally

Q2 2008:

+1.1 PP (sequentially)

Year on year 7.7 PP

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

SAP Global Market Share in \$ 38.1bn Relevant Core Enterprise Application Software and Software Related Services (SSRS) Market

^* Relevant Enterprise Application Software & Software Related Services Market

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

© SAP Investor Relations 2008 / Page 7 * at constant currency

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

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

SAP Offers the Deepest Industry Functionality

Balanced growth across established and focusIndustries

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 2008, license revenues more than doubled in last three years

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

Growth Opportunities – Large Enterprise and SME

Dividend and Share Buy-Back Policy

Share Buy-Backs (in € million)

© SAP Investor Relations 2008 / Page 10

Financial Highlights Half Year 2008

H108 H107 H108

17.9

© SAP Investor Relations 2008 / Page 11

H107

*at constant currencies (according to guidance format)

Double-digit Growth in all Regions

H1 2008:

Double-digit growth in all regions

SAP organic growth was 12%* in Q1 and 16%* in Q2

Business Objects added 12%* in Q1 and 16%* in Q2

APJ remains growth engine, followed by EMEA and Americas

BRIC countries continue to grow rapidly

Non-GAAP software and software-related service revenue in € million | in percent total | change compared to H12008

* at constant currency

• 1. SAP Overview and H1 2008 Highlights
• 2. Executing on SAP's Growth Strategy
• 1. Summary

Executing on SAP's Growth Strategy

Product Offering for Large Customers Expanded

Business User Solutions

SME

Business ProcessPlatform

Industry Solutions

SAP BusinessSuite

11,500+ ERP6.0 customers, thereof ~7,200 productive (+500 p.m.)

Three successfully shipped enhancement packages (EhP) prove SAP's unique technology of non-disruptive software delivery

Rapid growth in focus industries

SAP CRM 2008 successfully shipped

Any SAP customers intending to implement or upgrade any time in the next 12 to 18 months should look no further than [SAP] CRM 2008."

"

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

SAP Business Suite on business process

SAP Business All-in-One on business

Product portfolio transformed

Business User Solutions

SME

Business ProcessPlatform

Industry Solutions

SAP BusinessSuite

Composition

process platform

platform

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 €1.05bn
• Standalone software revenue grew* 49% to €404m

Future Growth Opportunities in the Established Business

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

Market Leader in the Fast-Growing Business User Segment

Product Portfolio for Small and Midsize Enterprises Completed

SAP is the undisputed market leader with 36% share

• 1. SAP Overview and H1 2008 Highlights
• 1. Executing on SAP's Growth Strategy
• 3. Summary

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%, expected to reach upper end*

*) Based on SAP's full-year 2008 business outlook as published on July 29th, 2008 © SAP Investor Relations 2008 / Page 21

Appendix

	S U G A A P -			N G A A P o n -
	H 1 2 0 0 8 € m i l l ion s	H 1 2 0 0 8 € m i l l ion s	%	H 1 2 0 0 8 € m i l l ion s	H 1 2 0 0 8 * € m i l l ion s	H 1 8 € m 2 0 0 i l l ion s	% No G A A P n-	No G A A P n- ta t co ns n cu rre nc y
S f t o a r e r e e n e w v u	1, 2 0 5	1, 2 8 7	1 9	1, 5 2 0	1, 6 2 6	1, 2 7 8	1 9	2 7
S S S R r e v e n u e	3 9 7 7 ,	3 2 1 9 ,	1 8	3 8 9 6 ,	4 1 2 8 ,	3 2 1 9 ,	2 1	2 8
T l t o a r e v e n u e	5 3 1 8 ,	4 5 8 3 ,	1 6	5 4 1 7 ,	5 7 3 9 ,	4 5 8 3 ,	1 8	2 5
O i i t p e r a n g n c o m e	9 5 2	1, 0 1 7	6 -	1, 2 0 0	1, 3 0 9	1, 0 4 1	1 5	2 6
O i i ( i ) t % p e r a n g m a r g n n	1 7 9	2 2 2	4 3 p p -	2 2 2	2 2 8	2 2 7	0 5 p p -	0 1 p p
N i t e n c o m e	6 5 0	7 5 9	1 4 -	8 3 4		4 7 7	8

* % currency adjusted – actual 2008 converted with the exchange rates of 2008

Enterprise Support Support Fee schedule

• Next-generation support offering "Enterprise Support" leads to graduated support fee increase 2009 – 2012 for the majority of SAP's customer base
• Extension of maintenance for R/3 4.6c and R/3 Enterprise

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

	S A P i E t n e r p r s e S t u p p o r	S A P S t d d a n a r S t u p p o r
/ / E d d i f S A P R 3 4 6 C d S A P R 3 4 7 i l d d t t ® ® i d in d d i io l im x e n e m a n e n a n c e o r a n n c u e t t t p ro g a na e o v , im le d- d lu io io t t t t p m e n e n o- e n s o n o p e ra ns
( ) C i l i h k C Q C t t ive hn ic l q l i du in im le io io t t ty t t t t o n n u o u s q u a y c e c s s a s p ro a c e c a a a s s e s s m e n s r g p m e n a n, o p e ra n, u d d a n u p g ra e s
S d i t t S ( 7x 2 4 ) d ire ic io ha l A P, ha d l in im in ir ie in u p p o r a v s o r y c e n e r t t t t t a s a c c o m m u n a n c nn e o n g p o r a n q u s c o nc e rn g l in d he du l in C Q C t t, c o ns g, s p p o r a n s c g s u u
S i l l t in io i d lo i h io i is e r v c e e v e a g r e e m e n ty tw t t t ty c ov e r g p r r o ne a n o cu s o m e r m e s s a g e s a ng o p p r r o ne su e s w ( l i ke l ive ho ) t a g o- s w s o p p e r
S S l i i d i i A P t M t t i h d d fu io l i fo d loy io d t t t ty t, t o u o n a n a g e r, e n e r p r s e e o n w ex e n e nc na r e p m e n o p e ra n, a n , in im d in io f S A P lu io t t t t c o n u ou s p ro ve m e n a n no va n o s o ns		S d d t a n a r d i i t e o n
d d i i A t t S fo A P ha ka d ka iva d d i io l t t t t t t a n c e n n o a o n s p p o r v v u r e n nc e m e n p a c g e s a n su p p o r p a c g e s o a c e a na fu f f f io l i d i d l ic i h i ic d d d i ic io t ty t t t t nc na a n av o c o n s w cu s o m e r-s p e c c o e a n m o a ns
E d d l i d d t t t t d fo f e is b l is h in le t t t t t t n o -e n q u a y m a n a g e m e n s a n a r s a n su p p o r r c u s o m e r c e n e rs o xp e r e o e s a a s g - f h d l i d d lo la d d in i fo d io l s i t t t t t t t t t ty t t ty s ou rc e o ru a n va a e cu s o m e r ev e p m e n s re e o a a e g r p e r rm a nc e, a n ra ns a c na e cu r ,
C d t i i t i t i l i ke f d hn lo d le l c ha tw t t o n n u o u s m p r o v e m e n a n n n o v a o n s o a re u p g ra e s, e c o g y u p a e s, g a ng e s, d d t a n a c c e s s o s ou rc e c o e
b l l i P t i h lo b l m in fo f p io i d 2 4x 7a he t t ty t t r o e m r e s o o n u w g a e s s a g e p ro c e s s g r c u s o m e r m e s s a g e s o r r o ne a n c e s s o S A P No ic t e s s e rv e
K l d f t f he i in he S A P S ic M ke la d i h ia l ize d t t ty t t t t t n o w e g e r a n s e r a s p a r o c o m m u n u s g e rv e a r p c e ex ra ne a n w s p e c f fe in fo S A P C C C lo io t t t t o r g s r u s o m e r o m p e e nc e e n e r c a ns
Q l i t t i h im le io ls d ho d lo he d d d i io f he S A P S lu io M a m a n a g e m e n t t t t t t t t t t u y w p m e n a n o o a n m e o g y, s a n a r e n o o n a na g e r ® S l ic io lu io d i in by he A P Ea ly W h A le ic t t t t t t t a p p a n m a na g e m e n s o n, a n m o n o r g r a c r s e rv e

Release and Maintenance Strategy SAP ERP

* Overall payment is SAP Standard Support / SAP Enterprise Support fee plus additional fee of 2% or 4% of the maintenance base per year.

** SAP ERP 6.0 is the application release formerly known as SAP ERP 2005. Potential maintenance extension for SAP ERP 6.0 pending partner negotiations.