SAP – The World's Leading Business Software Company
Dr. Werner Brandt CFO and Member of the Executive Board, SAP AG Deutsche Bank European TMT Conference London, September 7th, 2011
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Agenda
1. SAP at a Glance
-
Products and Strategy for Continued Growth
-
Summary
SAP is the World's Leading Business Software Company
SAP is…
- y #1 in enterprise applications
- y #1 in SME applications
- y #1 in business analytics
- y #1 in enterprise mobility
SAP is a truly global company…
- y 172,000+ customers
- y 120+ countries
- y 53,000+ employees
- y €12.5B 2010 revenue
- y 30+ global technology partners
- y 2,900+ certified partners
SAP's Business Model
Defensive Characteristics and Significant Growth Potential
© 2011 SAP AG. All rights reserved. 5
Financial Highlights 2010
SAP is Coming very Strong out of the Crisis
- €12.5bn total revenue
- 32% operating margin
- DSO decreased to 65 days (2009: 79 days)
- €3.5bn in cash (approximately €3bn from operations)
- Increased dividend by 20%
Solid Diversification of Revenue Streams:
Across Geographies and Industries
Agenda
- SAP at a Glance
2. Products and Strategy for Continued Growth
- Summary
SAP Sees a Structural Shift in IT Spending
Towards the Value Drivers in Applications Software
Transformation of the IT stack: There is a structural shift in IT spending away from the technology enablers (e.g. hardware, services) as they are commoditized and a move towards the value drivers in application software
SAP's Product Strategy
The Strategy Incorporates the Structural Shift in IT Spending
Extend from the Core to the People
* Service Oriented Architecture
SAP's Growth Strategy
SAP Accelerates the Expansion of its Addressable Market
Expansion of SAP's addressable market due to:
- market growth within established solution categories
- addition of new solution categories 2
- HANA, Sybase ASE, IQ
- Sybase Unwired Platform, Afaria, Mobile Apps
- SAP Business ByDesign, LoB On Demand
- SAP BI 4.0, Analytic Apps
- SAP NetWeaver
- SAP ERP, SAP Business Suite for 24+ Industries, Line-of-business specific solutions Rapid Deployment Solutions
© 2011 SAP AG. All rights reserved. 11
Very Strong Core Business
The Foundation of SAP's Growth Strategy
SAP is the undisputed leader in on-premise business solutions
Healthy core business is growing
y Customers choose SAP for our ability to innovate around a stable core
Clear leader in business analytics
- y Full and comprehensive analytics suite
- y Area of double-digit growth
Strong new growth areas
- y Fast growing industries: Banking, Retail, Healthcare
- y Emerging markets opportunity
- y Fast growing LoB solutions outside the suite: Transportation Management, Energy Management
Megatrend: Convergence of Mobility, Big Data and Cloud
These megatrends are a focal point in SAP's growth strategy
Mobility
- Smartphones outsell PCs
- By 2013, mobile devices will be the primary method of internet access worldwide
Big Data
Data volume for enterprise applications is doubling every 18 months
Cloud
80% of new software offerings this year will be available as cloud services
Expanding SAP's Addressable Market
Mobile Solutions – SAP's On Device Strategy
- Make SAP solutions available on a broad number of devices
- Access SAP anytime and anywhere
- Based on Sybase's leading mobile solutions portfolio
- ~60% of world's population on Mobile already, more than 1 billion mobile workers globally as of today
- Corporate applications accessed from mobile devices growing at >40% p.a.
- SAP will deliver 50 Apps for mobile devices in 2011
SAP's Answer to Big Data "Real" Real-Time Computing with SAP HANA
The SAP in-memory computing engine is an integrated database and calculation layer that allows the processing of massive quantities of real-time data to provide immediate results:
- y 100x 1,000x faster than traditional data processing
- y Data is stored in-memory rather than on hard disk
Market Validation
- y 5 hardware partners: Cisco, Dell, Fujitsu, HP and IBM
- y 25+ global customers live or in trials
- y Triple-digit millions pipeline
- y 20+ customer video testimonials
- y Strategic Workforce Planning First HANA enabled application
Expanding SAP's Addressable Market Cloud Computing – The On Demand Opportunity
SAP delivers superior business value to SME and LE customers by offering a portfolio of solutions for the cloud. Cloud solutions provide both compelling value and seamless integration with on-premise SAP solutions.
SAP Business ByDesign
- y Software solution that enables customers to run their entire business with a single, cloud-based application
- y For SME and LE subsidiaries
On-Demand solutions for Lines of Businesses
- y Designed around the way people work
- y Sales OnDemand
- y Sourcing OnDemand
- y SAP Carbon Impact OnDemand
- y Career OnDemand (coming soon)
- y Travel OnDemand (coming soon)
On-demand solutions for personal productivity
- y SAP BusinessObjects BI OnDemand
- y SAP StreamWork
All solutions run on the same cloud-platform
Agenda
- SAP at a Glance
2. Products and Strategy for Continued Growth
3. Summary
Summary
- y SAP is the clear market leader in the enterprise business applications industry
- y Strong growth opportunities supported by a sustainable, robust, long term business model
- y Diversified revenue streams across geographies, industries and customer segments
- y SAP's aspiration for further margin expansion
- y Highly skilled workforce
- y Excellent reputation and brand recognition
SAP – The World's Leading Business Software Company
Dr. Werner Brandt CFO and Member of the Executive Board, SAP AG Deutsche Bank European TMT Conference London, September 7th, 2011