SAP SE — Investor Presentation 2008

Jun 4, 2008

Werner Brandt CFO, Member of the Executive Board SAP AG

Frankfurt –June 4th, 2008

Safe HarborStatement

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 Q1 2008 Highlights

• 2.Executing On SAP's Growth Strategy
• 1. 2008 –2010 Midterm Strategy

SAP –The World's Leading Provider

of Business Application Software

The world's leading provider of business application software

• 70,000+ 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 BreakdownSAP Has a Strong Recurring Revenue Base

Regional Balance

Broad Global Reach Provides

FY 2007:

Double-digit growth in all regions

EMEA: Outstanding performances in Russia, France, Ger many 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 S oftware and software related service revenue | change compared to F Y2006

*

SAP Offers the Deepest Industry Functionality

Balanced growt h acrossestablished and focusIndustries

Oil & Gas, Consumer Products, Utilities, Banking and Retail top perfor mers

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 year s

in €million | in percent of SSRS re venue | change compared t o FY2006

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

Note: Public Servicesaccounts 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

17th Consecutive Quarter of Double-Digit Growth

• +24%* Non-GAAP software and software related service revenue growth
• +12%* SAP stand-alone Non-GAAP software and software related service revenue growth
• High win rate: +80% against next largest competitor
• Strong market momentum continues in SME, with +1,500 customers added, up 28%

First Quarter 2008 – Strong Growth in Software and Software Related Service Revenues

		U S G A A P		N G A A P o n -
i € n m	Q / 2 0 0 8 1	Q / 2 0 0 1 7	% U	Q / 2 0 0 8 1	Q / 2 0 0 1 7	% U	Q / 1 2 0 0 8 ( t c t. a on s ) cu rr	% U ( t c t. a on s ) cu rr
S f t o w a r e r e v e n u e s	6 2 2	5 6 2	1 1	6 2 2	5 6 2	1 1	6 6 5	1 8
S f d f t t o a r e a n s o a r e w w l d i t r e a e s e r v c e r e v e n u e s	1 7 3 6 ,	1 5 1 5 ,	1 5	1 7 8 3 ,	1 5 1 5 ,	1 8	1 8 8 1	2 4
T l t o a r e v e n u e s	2 4 6 0 ,	2 1 6 2 ,	1 4	2 5 0 7 ,	2 1 6 2 ,	1 6	2 6 4 5	2 2
O i i t p e r a n g n c o m e	3 5 9	4 3 6	1 8 -	4 8 9	4 4 7	9	3 5 5	2 0
( ) O i i % t p e r a n g m a r g n	1 4 6	2 0 2	6 5 p p -	1 9 5	2 0 7	1 2 p p -	_	/ 2 0 2 %
I f n c o m e r o m i i i t t c o n n u n g o p e r a o n s	2 4 7	3 1 2	2 1 -	3 4 5	3 1 9	8	_	0 5 p p - _
N i t e n c o m e	2 4 2	3 1 0	2 2 -	3 4 0	3 1 7	7	_	_
S B i E P f t. a s c r o m c o n i ( € ) t o p e r a o n s	0 2 1	0 2 6	1 9 -	0 2 9	0 2 6	1 2	_	_

Operating Income and Margin – OverviewFirst Quarter 2008

Non GAAP operating margin in Q1 2007: 20.7%

Continued Strong Share Gains Organically and Through Acquisition

• Q1 2008: Gained share across all regions
• +0.9 PP (organically)
• +3.3 PP (Business Objects acquisition)

Year on year 7.6 PP

1 RelevantEnterprise Application Software & Software Related Services Market

• 1.SAP Overview and Q1 2008 Highlights
• 2.Executing on SAP's Growth Strategy
• 1. 2008 –2010 Midterm Strategy

Executing on SAP's Growth Strategy

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

Strong Migration to SAP ERP

Business User Solutions

SME

BusinessProcessPlatform

Industry Solutions

SAPBusinessSuite

~10,000 SAP ERP 6.0 customers (thereof 6,000 productive)

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

Rapid growth in focus industries

SAP CRM 2007 successfully shipped

Future Growth Opportunities in the Established Business

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

Enhancement Packages - Optionally installed and activated

• Î More end-to-end industry processes
• ÎHarmonized user interface
• ÎEmbedded analytics
• ÎEmbedded search
• ÎContinued SOA enablement

" The implementation [of the Enhancement Package] was even simpler than a support package."

Business Process Platform –SAP's Enterprise Service Oriented Architecture Delivered

Business User Solutions

SME

BusinessProcessPlatform

Industry Solutions

SAPBusinessSuite

Product por tfolio transformed

• SAP Business Suite on business process platfor m
• SAP Business All-in-One on business process platfor m

Composition

SAP NetWeaver Composition Environment available

Enterprise SOA

• Road map completed
• 170+ reference accounts
• 2,800+ enterprise services available

Momentum in SAP NetWeaver

• 38,700+ productive systems
• 26% increase* in software revenue to \$1bn
• Standalone software revenue grew* 67%

*rolling four quarter basis year over year

Broad Product Portfolio for Small and Midsize Enterprises

Market Leader in the Fast-Growing Business User Segment

Business Objects Strengthens the Entire SAP Product Portfolio

B i B i u s n e s s u s n e s s U U s e r s e r S l i t S l i o t o n s u o o n s u	E d i i i l l S # 1 t A P t t t t " x p a n p o s o n c o n n u e o s e o n o n a c c o u n s - , S B i l d l b i f i i i A P t t t r n g c o s e o o p s n e s s p e r o r m a n c e o p m a o n o " u z - t c s o m e r s u
S M E S M E	S E b d l i b i l i i i A P 's i d k d f l i t t t t t m e a n a c c a p a e s n m m a r e p r o c p o r o o " y u O L B i b j 's i d k h l t t e e r a g e s n e s s e c m m a r e c a n n e " v u
B i B i u s n e s s s n e s s u P P r o c e s s r o c e s s P l f t P l f a t o r m a o r m	C S 's f d l A P b i l i h t t t t " o m p e m e n u s n e s s p r o c e s s p a o r m w a a a i b i i l l i l f t t t s o u r c e -a g n o s c u s n e s s n e g e n c e p a o r m
I d t I d n u s t r y n s r u y S l i t S l i o u t o n s o u o n s	O L B i b j i b l d t t t t e v e r a g e s r o n g u s n e s s e c s p r e s e n c e n a e g r o u n " i d i ( f i i l i i l ) t t n u s r e s e g n a n c a s e r v c e s r e a ,
S A P S A P B i B i u s n e s s s n e s s u S i t S i u t e u e	f S S F h i i A P B i i i h t t t t t t u r e r n c r e a s e a r a c v e n e s s o u s n e s s u e w " b d d d i l l i t t e m e e o p e r a o n a a n a y c s ,

Getting insight

• ÎDeliver and manage all types of information
• Î Easy access within the preferred user experience
• ÎPredictive analysis, explorative search

Manage relationships

• Î Empower and connect people across org. boundaries
• Î Collaboration in teams across org. boundaries

Turning insight into decisions

• Î Link between strategic goals and operational targets
• ÎEnable situational processes ad-hoc

With Enterprise SOA Delivered: What's Next? Closed Loop Business Performance Optimization

EFFICIENCY

• 1.SAP Overview and Q1 2008 Highlights
• 2.Executing on SAP's Growth Strategy
• 3. 2008 –2010 Midterm Strategy

SAP's Growth Strategy Mid-Term Goals

T h f d i f S A P b i t 's e o u n a o n o u s n e s s – h i h l f i b l i h t t g y p r o a e o r g a n c g r o w ,	O i i t t r g a n c e n r y n o d k t t, n a p p e m a r e u i i l t n n o a e o m e v v v u	b i N e w u s n e s s d B i a r o n s n e s s u u O b j t e c s a n , S A P c o m p a n y O i i l 2 0 0 8 t t " r g a n z a o n a : i i d t t n e g r a o n a n d d t p r o c r o a m a p u G 2 0 0 8 2 0 0 1 r o " w : - i i f i l f t t s g n c a n a s e r y h b l i h d t t a n e s a s e
F h d b l d i i f d f t t t t r e r o e g s o a r e a n s o a r e " u u w w - l d i h t t t t t r e a e s e r v c e r e v e n u e g r o w a c o n s a n f i i l k t t t c r r e n c e s c o n n o s o p e r o r m m a r e u u u y u , F h i i i t t " r e r o p e r a n g m a r g n e p a n s o n u x	b i d l u s n e s s m o e A l i d l t t " e r n a e e p o m e n v y i t o p o n s 2 0 0 8 € 1 0 0 i l l i m o n " : ~ i l d t t t a c c e e r a e n v e s m e n s 2 0 0 9 N o m o r e " : l d i t t t a c c e e r a e n e s m e n s v
b i L e e r a g e n e s n e s s v w u i f h t t t n e s m e n s o r e v b l i h d b i t e s a s e u s n e s s	M i d R t e r m e v e n u e " - \$ i l f U S 1 b t t p o e n a o n ~ A i i i d l t m n g o r a p y m o v e i l l h i t m a r g n s o e v e s a c e b i s n e s s u	b i s n e s s u b i i t n e w u s n e s s o p e r a n g d i h b l i h d t t v e n e e s a s e

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 c ustomer 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 r elated 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-GA AP operating margin
• Expected Non-GAAP operating margin growth in 2008: 120 – 170 basis points ( at constant currencies), target range 28.5% - 29.0%*

*) Based on SAP's full-year 2008 business outlook as published on April 30th, 2008 ©SAP Investor Relations 2008 / Page 28