SAP SE — Investor Presentation 2009

Jul 20, 2009

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

Deutsche Bank German & Austrian Corporate Conference Frankfurt – June 23, 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

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

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The world's leading provider of business application software

• ~86,000 customers in 120 countries
• Broad global reach provides regional balance and a greater addressable market
• Undisputed market leader
• Recognized global brand "Ranked 31st" of the "Best Global Brand List 2008" (2007: Rank 34)*
• 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 ~15,500 developers
• First to market with next generation enterprise SOA** architecture
• Deepest industry functionality with > 25 industry solutions

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

SAP's Solutions Offerings By Customer Segment

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

© SAP AG 2009. All rights reserved. / Page 8

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

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

© SAP AG 2009. All rights reserved. / Page 9

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

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

Product Innovation – Revolutionizing Business Intelligence with SAP Business Objects Explorer

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 Has Compelling Advantages Versus Every Category of Competitors

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 " Stand alone utility Development effort	Cost " Long-term support " and continuous improvement Best practices "

The Current Situation

The Economic Downturn Had an Immediate, Significant Impact on SAP's Software Revenue

• SAP started with a very strong H1 2008, with strong organic growth and excellent contribution from SAP Business Objects
• Following the acceleration of the financial crisis in mid-September the economic environment deteriorated significantly
• SAP's H2 2008 was severely impacted with an H2 SSRS growth rate 50% below the H1 level
• Customer buying patterns changed
• High share of order entry from existing customers in H2
• Reduced average transaction volumes

SAP Quickly Responded with Thorough Cost Management

Q1 2009 is Testimony to the Strength of SAP's Business Model

Growing stream of stable, recurring revenues

• Software revenue decreased 33% yoy
• Support revenue increased 14% yoy
• Subscription revenue increased 29% yoy
• • Flexible cost base
• Cost containment measures in place
• Workforce reduction on track
• Cost base* reduced by ~9% yoy

= Earnings protection

Non-GAAP Operating Expenses

But:

• Visibility remains very limited for 2009 and beyond closure rates are hard to predict
• Tough comparison to the strong results reported in both Q1 and Q2 2008
• SAP will continue to very carefully manage its cost base

Summary

A Summary

• SAP is the clear market leader in the business applications industry with an addressable market of ~\$70b
• 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

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

Deutsche Bank German & Austrian Corporate Conference Frankfurt – June 23, 2009

Income Statement Overview Full-Year 2008 (U.S. GAAP and Non-GAAP)

FY 2008 FY 2007 % change FY 2008 FY 2007 % change % change constant currency* Software revenues 3,606 3,407 6 3,606 3,407 6 10 Software and software-related service revenues 8,457 7,427 14 8,623 7,427 16 20 Total revenues 11,567 10,242 13 11,733 10,242 15 19 Operating income 2,842 2,732 4 3,305 2,793 18 24 Operating margin (%) 24.6 26.7 -2.1pp 28.2 27.3 0.9pp 1.1pp Income from continuing operations 1,925 1,934 ⁰ 2,266 1,975 ¹⁵ _ Net income 1,888 1,919 -2 2,229 1,960 14 _ Basic EPS from cont. operations (€) 1.62 1.60 ¹ 1.90 1.64 ¹⁶ _ U.S. GAAP Non-GAAP € millions

Non-GAAP Revenue Numbers Full-Year 2008

	FY 2008 € millions	FY 2008* € millions	FY 2007 € millions	%	% constant currency*
Software revenue Support revenue Subscriptions & other software-rel. serv. revenue SW & SW-related service revenue	3,606 4,759 258 8,623	3,745 4,914 260 8,919	3,407 3,838 182 7,427	6 24 42 16	10 28 43 20
Consulting revenue Training revenue Other services revenue Professional services revenue	2,500 434 106 3,040	2,592 452 111 3,155	2,221 410 113 2,744	13 6 -6 11	17 10 -2 15
Other revenue	70	72	71	-1	1
Total revenue	11,733	12,146	10,242	15	19

Non-GAAP Revenue Breakdown by Region** Full-Year 2008

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

Non-GAAP Net Income, EPS and Key Ratios Full-Year 2008

	FY 2008 € millions	FY 2007 € millions	%	% constant currency*
Operating income	3,305	2,793	18	24
Other non-operating income/expense, net Financial income/expense, net Income from continuing operations before income taxes	-25 -63 3,217	1 124 2,918	N/A N/A 10
Income taxes Income from continuing operations	-950 2,266	-941 1,975	1 15
Net income	2,229	1,960	14

	FY 2008	FY 2007	%	% constant currency*
EPS from continuing operations – basic in €	1.90	1.64	16
EPS from net income – basic in €	1.87	1.62	15
Operating margin	28.2%	27.3%	0.9pp	1.1pp
Effective tax rate from continuing operations	29.5%	32.2%	-2.7pp

Balance Sheet & Cash Flow Analysis Full-Year 2008 (U.S. GAAP)

	12/31/08	12/31/07
Net liquidity (€ millions)	-659	2,729	-3,388
Gross liquidity (€ millions)	1,662	2,756	-1,094
Days sales outstanding (DSO)	71 days	66 days	+5 days
Equity ratio	52%	63%	-11pp
	FY 2008 € millions	FY 2007 € millions	%
Operating cash flow – Cash conversion rate *	2,183 116%	1,950 102%	+12 +14pp
	FY 2008 € millions	FY 2007 € millions	%
Operating cash flow – Capital expenditure	2,183 -339	1,950 -401	+12 -15
Free cash flow	1,844	1,549	+19
Free cash flow as a % of total revenue	16	15	+1pp