SAP SE

Investor Presentation • Sep 28, 2009

SAP The World's Leading Provider of Business Application Software

Dr. Werner Brandt CFO and Member of the Executive Board, SAP AG

UniCredit German Investment Conference 2009 Munich – September 23rd, 2009

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 "believe," "estimate," "intend," "may," "will," "expect," and "project" and similar expressions as they relate to the Company are intended to identify such forward-looking statements. The Company 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 the Company's future financial results are discussed more fully in the Company's filings with the U.S. Securities and Exchange Commission (the "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.

SAP – An Overview

The World's Leading Provider of Business Application Software

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The world's leading provider of business application software

• ~89,000 customers in 120 countries
• Broad global reach provides regional balance and a greater addressable market
• Undisputed market leader
• Recognized global brand (31st most valuable brand on a global basis)
• Among top 100 most valuable companies in the world (Rank 99 by market capitalization)

Strongest product portfolio based on an open technology platform

• Leading product and technology innovation with ~15,000 developers
• First to market with next generation enterprise SOA architecture
• Deepest industry functionality with 25 industry solutions

SAP's Solutions Deliver Economic Impact on a Global Scale

SAP's purpose: SAP helps the world run better in order to create enduring prosperity for people everywhere

SAP's solutions run …

Production of 40 million

barrels of oil per day

with one bank Production of 32,000

car engines per day

50 million Bank accounts

Retail outlets transactions totaling \$330 million per day

75% of worldwide annual beer production (1.5 billion hectoliter)

Defense forces across 107 countries

54 million

Annual health-care patient visits (US Only)

Processing of 2.5 billion utility bills per day

65% of worldwide annual chocolate production (2.2 million tons)

Production of 4 million tons of chemicals per day

SAP's Vision – The Clear Enterprise

A clear enterprise has complete visibility across its business and business network

• To survive in today's business environment, companies must see clearly, think clearly, and act clearly – within their own organization as well as across their business network
• Only those companies with the visibility to act effectively and decisively will thrive in the long term and emerge stronger than the competition in the short term

SAP software helps to close the gap between business strategy and execution

• SAP provides a single, integrated technology platform that supports industry-specific business processes
• SAP software also leverages a service-oriented architecture (SOA) which speeds and simplifies the integration of SAP and non-SAP solutions
• In the end, customers will have better insight into their business conditions, higher efficiency and flexibility

SAP's Business Model – Increasing Streams of Recurring, Stable and Profitable Revenue

© SAP Investor Relations 2009 / Page 7

* Non-GAAP, in € billion, unless stated otherwise

Complete Solutions Portfolio Covering Every Employee in Every Industry in Every Company

Product Innovation – Launching SAP Business Suite 7

• SAP's next-generation software suite
• Delivery of 30 industry-rich value scenarios spanning organizational boundaries and application silos
• Reduced total cost of ownership:
• Enhancement Package technology eases upgrades ("pick and choose")
• Harmonized user interface increases productivity and reduces training efforts
• SAP Enterprise Support and SAP Solution Manager reduce cost of operations
• Incorporated analytical capabilities from the SAP Business Objects portfolio support decision making
• Launch partners include IBM, Capgemini, Atos Origin and Wipro

SAP Business Objects Explorer – Revolutionizing Business Intelligence

Bring BI to All Business Users

• Simplicity and speed of search
• Intuitive data exploration and visualization
• Fast response across mountains of data

Help IT to be Successful

• Easy and efficient to manage and scale
• More reactive to business with faster delivery
• Based on proven reliable infrastructure

SAP Business ByDesign Continues to Expand and Grow

• FP 2.0 just went GA in July 2009, a significant milestone that delivers increased business functionality
• The next release will increase extensibility and flexibility while reducing operating costs
• SAP will continue with it's controlled Go-to-Market approach in six countries in 2009

SAP's Solutions Offerings By Customer Segment

Go-to-market		Customer segment	Primary solution offering
Large Accounts	Direct	Large Enterprises (> 2,500 employees) ~\$30 billion market	SAP Business Suite
	Hybrid	Upper Midsize (500 to 2,500 empl.) ~\$15 billion market	SAP Business All-in-One
SME	TCE	Lower Midsize (100 to 500 empl.) ~\$15 billion market	SAP Business ByDesign
	Solely indirect	Small Businesses (5 to 100 employees) ~\$15 billion market	SAP Business One

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

New Products Drive the Expansion of SAP's Addressable Market

* Addressable market, based on software and software-related service revenue. Source: SAP, IDC

SAP Has Compelling Advantages Versus Every Category of Competitors

Other 'suite' vendors Other 'suite' vendors	' 'Best of breed' vendors	Inhouse development and custom development
Consistent technology " and semantics Non-overlapping " solution portfolio Investment protection " Reputation " Largest customer " base Unmatched industry " expertise Strongest 'ecosystem' " of partners	Integration " 'One throat to choke' " Stability and reliability " of vendor Customer access " Global standards " Development effort	Cost " Long-term support " and continuous improvement Best practices "

The Current Situation

The Economic Downturn Had a Significant Impact on SAP's Software Revenue

• Following the acceleration of the financial crisis in mid-September the economic environment deteriorated significantly
• Customer buying patterns changed
• High share of order entry from existing customers
• Reduced average contract sizes
• H1 2009: Software revenue down 38%*; SSRS down 7%*; Support revenue up 13%*

H1 2009 is Testimony to the Strength of SAP's Business Model

Growing stream of stable, recurring revenues

• Support revenue increased 15% yoy*
• Subscription revenue increased 20% yoy*
• • Flexible cost base
• Cost containment measures in place
• Reductions of positions on track
• Cost base** reduced by ~-8% yoy (or -12% less restructuring charges)
• = High Level of Earnings protection

But:

• Visibility remains very limited for 2009 and beyond closure rates are hard to predict
• SAP will continue to very carefully manage its cost base

Non-GAAP

Summary

Summary

• SAP is the clear market leader in the business applications industry with an addressable market of ~\$70bn
• SAP's business model represents a rare combination of defensive characteristics and significant growth potential
• Using product innovation and targeted acquisitions, SAP expands into adjacent markets where it can leverage its competitive advantages
• SAP has advantages versus every category of competitors and can emerge from the downturn in an even stronger competitive position
• In the current environment SAP carefully manages its cost base, putting a strong focus on earnings protection

Key Figures First Half 2009

Operating Margin (%)

* at constant currencies

1) includes negative effect of 3.3pp from H1 2009 restructuring charges of €165 million 2) includes negative effect of 0.10 € from H1 2009 restructuring charges of €165 million

Revenue Analysis First Half 2009 (U.S. GAAP and Non-GAAP)

	U.S. GAAP Non-GAAP
	6M	6M		6M	6M		¨%
€ millions, unless otherwise stated	2009	2008	¨%	2009	2008	¨%	constant currencies
Software revenue	962	1,520	-37	962	1,520	-37	-38
Support revenue	2,589	2,157	20	2,600	2,256	15	13
Subscription & other softw.-rel. serv. rev.	144	120	20	144	120	20	14
SSRS revenue	3,695	3,797	-3	3,706	3,896	-5	-7
Consulting revenue	1,071	1,215	-12	1,071	1,215	-12	-14
Training revenue	142	218	-35	142	218	-35	-36
Other service revenue	47	51	-8	47	51	-8	-10
Professional & other services revenue	1,260	1,484	-15	1,260	1,484	-15	-17
Other revenue	19	37	-49	19	37	-49	-51
Total revenue	4,974	5,318	-6	4,985	5,417	-8	-10

U.S. GAAP Revenue Breakdown by Region First Half 2009

€ millions | yoy percent change Software and software-related service revenue by region*

Total revenue by region*

Non-GAAP Revenue Breakdown by Region First Half 2009

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

Software and software-related service revenue by region**

Margin Analysis First Half 2009 (U.S. GAAP and Non-GAAP)

	U.S. GAAP		Non-GAAP
	H1	H1		H1	H1
€ millions, unless otherwise stated	2009	2008	¨%	2009	2008	¨%
SSRS revenue	3,695	3,797	-3	3,706	3,896	-5
SSRS cost	-780	-785	-1	-687	-692	-1
SSRS margin in %	78.9	79.3	-0.4pp	81.5	82.2	-0.7pp
PSOS revenue	1,260	1,484	-15	1,260	1,484	-15
PSOS cost	-988	-1,148	-14	-986	-1,148	-14
PSOS margin in %	21.6	22.6	-1.0pp	21.8	22.6	-0.8pp
Gross margin in %	64.3	63.4	0.9pp	66.3	65.8	0.5pp
Research and development	-737	-838	-12	-735	-823	-11
- as a percentage of total revenue	14.8	15.8	-1.0pp	14.7	15.2	-0.5pp
Sales and marketing	-1,074	-1,278	-16	-1,037	-1,237	-16
- as a percentage of total revenue	21.6	24.0	-2.4pp	20.8	22.8	-2.0pp
General and administration	-257	-321	-20	-256	-321	-20
- as a percentage of total revenue	5.2	6.0	-0.8pp	5.1	5.9	-0.8pp
Restructuring charges	-165	0	N/A	-165	0	N/A
- as a percentage of total revenue	3.3	0.0	3.3pp	3.3	0.0	3.3pp
Operating margin in %	19.7	17.9	1.8pp	22.6	22.2	0.4pp

SSRS: Software and Software-Related Service PSOS: Professional Service and Other Service

Balance Sheet (U.S. GAAP) June 30, 2009

Assets

€ millions	06/30/09	12/31/08
Cash and cash equivalents, short-term investments*	3,443	1,662
Accounts receivable, net	2,442	3,128
Other current assets	1,013	992
Current assets	6,898	5,782
Goodwill	5,026	5,009
Intangible assets, net	1,004	1,127
Property, plant and equipment, net	1,384	1,405
Other noncurrent assets	969	874
Noncurrent assets	8,383	8,415
Total assets	15,281	14,197

Shareholders' Equity & Liabilities

€ millions	06/30/09	12/31/08
Financial liabilities	2,445	2,574
Deferred income	1,609	611
Other current liabilities	2,074	2,649
Current liabilities	6,128	5,834
Financial liabilities	719	36
Provisions	505	497
Other noncurrent liabilities	588	595
Noncurrent liabilities	1,812	1,128
Total liabilities	7,940	6,962
Shareholders' equity	7,341	7,235
Total shareholders'
equity & liabilities	15,281	14,197

* incl. restricted cash

Balance Sheet, Cash Flow, Liquidity Analysis June 30, 2009

	06/30/09	12/31/08	¨
1) Net liquidity (€ millions)	436	-659	N/A
Days sales outstanding (DSO)	77 days	71 days	6 days
Equity ratio	48%	51%	-3pp

€ millions, unless otherwise stated	6M 2009	6M 2008	¨%
Operating cash flow from continuing operations	1,833	1,371	34%
- Capital expenditure	-106	-171	-38%
Free cash flow	1,727	1,200	44%
Free cash flow as a percentage of total revenue	35%	23%	12pp
2) Cash conversion rate	286%	208%	78pp

Total Group Liquidity3) Development

1) Defined as total group liquidity less bank loans and overdrafts

2) Defined as operating cash flow from cont. ops. as a % of income from cont. ops.

3) Defined as cash and cash equivalents + restricted cash + short-term investments

Headcount June 30, 2009 – Continuing Operations Only

in full-time equivalents | ෙ6M | %6M

Headcount by Region Headcount by Functional Area

SAP Institutional IR Contacts

Stefan Gruber Head of Investor Relations +49 (6227) 7-44872 stefan.gruber@sap.com

New York, USA

Martin Cohen North America +1 (212) 653-9619 martin.cohen@sap.com

Stephan Foerster North America +1 (212) 653-9682 stephan.foerster@sap.com

Walldorf, Germany

Umer Mir Asia & Europe +49 (6227) 7-61135 umer.mir@sap.com

Ulrich Wolf Europe +49 (6227) 7-60212 ulrich.wolf@sap.com

www.sap.com/investor