Investor & Financial Analyst Conference SAPPHIRENOW 2011
May 17, 2011 I Orlando, FL
SAPPHIRENOW Investor & Analyst Conference
- 12:45 12:50 ET Welcome & Introduction Stefan Gruber, Head of Investor Relations
- 12:50 1:20 ET SAP's Product & Technology Strategy Peter Lorenz, EVP, On-Demand Solutions Raj Nathan, EVP & CMO, Sybase
- 1:20 1:30 ET Orchestrated Product Demo On-Premise, On-Demand, On-Device
SAPPHIRENOW Investor & Analyst Conference
- 1:30 2:05 ET Global Customer Operations Strategy Rob Enslin, President of Global Sales Sanjay Poonen, President of Solutions Go-To-Market Eric Duffaut, President of Ecosystem and Channels
- 2:05 2:15 ET In-Memory Computing Vishal Sikka, CTO
- 2:15 2:45 ET Executive Q&A Session Bill McDermott, Co-CEO Jim Hagemann Snabe, Co-CEO Werner Brandt, CFO Vishal Sikka, CTO
Safe Harbor Statement
Any statements contained in this document that are not historical facts are forward-looking 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 forwardlooking 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 forward-looking statements, which speak only as of their dates.
Investor & Financial Analyst Conference SAPPHIRENOW 2011
May 17, 2011 I Orlando, FL
Introduction to SAP's Cloud Strategy
Peter Lorenz, EVP OnDemand Solutions Corporate Officer, SAP AG
Customer Needs are Driving Market Trends On Premise, On Demand and Cloud Co-Existence
- Hybrid business solutions and networks are becoming the norm
- Companies will choose services
- for different purposes
- from both public and private clouds
- integrated with on-premise solutions
- Openness and ecosystem strength will be key success factors for providers
- Orchestration of hybrid solution landscapes will become key
- Collaboration is central aspect of cloud applications
- Significant TCO reduction through migration of existing ERP installations to the cloud
Our Strategy for Success
Four Key Areas of Innovation and Investment
- Best service at Lowest Cost
- Global 7x24
New Ways to
SAP Store at the core of an e-channel for SAP
© 2011 SAP AG. All rights reserved. 8 © 2011 SAP AG. All rights reserved. 8
Comprehensive Solution Portfolio
Seamlessly Integrated for a Hybrid World
On Device Strategy
Raj Nathan Executive Vice President and Chief Marketing Officer, Sybase, Inc.
Key Technology Integration Initiatives On Track
On Device Product Strategy
Mobile services
Mobile applications
Mobility platform
One Platform to Reduce Complexity
Mobile services
Mobile applications
Mobility platform
Mobile Services to Reduce Complexity Mobility platform
Mobile services
Mobile applications
Partner Ecosystem Central to Mobility Strategy
Discussion Panel
SAP's Product & Technology Strategy
Peter Lorenz, EVP, On-Demand Solutions Raj Nathan, EVP & CMO, Sybase
Investor & Financial Analyst Conference
Product Demo
Investor & Financial Analyst Conference SAPPHIRENOW 2011
May 17, 2011 I Orlando, FL
Rob Enslin
President Global Sales
SSRS Revenue Breakdown by Region First Quarter 2011, Non-IFRS
€ millions | yoy percent change
SAP Solutions Portfolio & Strategy
Sanjay Poonen President Global Solutions
SAP's Solutions – Portfolio and Strategy
- Extreme ease-of-use
- Any data, clean data
- Strategic & Predictive
- Big Data, Real-time
- Unrivaled performance
- Industry-relevant
- Strong in 24 industries
- User Exp. innovation
SAP's Solutions – Portfolio and Strategy
ERP HCM SCM PLM PROC CRM Systems of Record / PROCESS Mobility Business ByDesign • World-class OnDemand Platform • People-centric targeted LoB Applications • Built-in Analytics, Mobility capabilities • Integration to OnPremise SAP Apps Sales OnDemand Talent Mgmt Travel & Expense Sourcing …
Summary
- Core (ERP) will continue to grow, especially in emerging regions
- Faster growth in Business Analytics, Line-of-Business Apps
- Innovation Vectors In-memory, Mobility, Cloud Computing
Ecosystem & Channels Strategic Enabler of SAP's Goals
Eric Duffaut President Ecosystem & Channels
Ecosystem & Channels – Providing Choice & Delivering Value to Customers of All Sizes
Ecosystem & Channels – Strategic Imperatives
Discussion Panel
Global Customer Operations Strategy
Rob Enslin, President of Global Sales Sanjay Poonen, President of Solutions Go-To-Market Eric Duffaut, President of Ecosystem and Channels
Investor & Financial Analyst Conference SAPPHIRENOW 2011
May 17, 2011 I Orlando, FL
Vishal Sikka CTO,SAP AG
Werner Brandt CFO,SAP AG
Reconciliation from IFRS to Non-IFRS
IFRS Revenue Measure
- Deferred support revenue write-down
- Non-IFRS Revenue Measure
- Discontinued activities +/-
- Stock-based compensation expenses +/-
- Acquisition-related charges +/-
- Restructuring +/-
- Non-IFRS Profit Measure
Non-IFRS Adjustments at SAP
Deferred support revenue write-down:
- y Support revenue that the acquired entity would have recorded absent the acquisition by SAP.
- y The effects presented in 2010 and so far in 2011 result from the Sybase acquisition.
Discontinued activities:
- y Operations that are disposed of, but do not meet the threshold of a major line of business or geographical area.
- y Discontinued activities currently relate to the activities of the TomorrowNow entities.
Stock-based compensation expenses:
- y Variable employee compensation resulting from share-based compensation plans.
- y These expenses increase and decrease mainly based on changes in our share price and our performance against the TechPGI index.
Acquisition-related charges:
- y Relates mainly to amortization expenses as a result of acquired intangible assets.
- y The majority of the acquisition-related charges are from Sybase and Business Objects.
Restructuring:
- y Costs incurred in connection with a company-wide restructuring plan implemented and controlled by management.
- y Severance charges, for example, would only qualify under this expense category if incurred as part of a company-wide restructuring plan.
Non-IFRS Adjustment Estimates for 2011
The following amounts represent the differences between IFRS and non-IFRS on operating profit:
| Non-IFRS Measures |
Actual Amounts from |
Estimated amounts for |
| (in $\epsilon$ million) |
2010 |
$2011^{1}$ |
| Deferred support revenue write-down |
€74 |
Between €20 and €30 |
| Discontinued activities 2) |
€983 |
Less than €20 |
| Stock-based compensation expenses 3). 4) |
€58 |
Between €140 and €160 |
| Acquisition-related charges 5) |
€300 |
Between €430 and €460 |
| Restructuring |
€3 |
Less than €10 |
-
- All adjusting items are partly incurred in currencies other than the Euro. Consequently, the amounts are subject to currency volatility. All estimates for 2011 provided in the table are at actual currency and are calculated based on certain assumptions regarding the developments of the different currency exchange rates. Depending on the future development of these exchange rates the total amounts for 2011 may differ significantly from the estimates provided in the table above. Please remember that SAP's financial market outlook is based on constant currency.
-
- We will consider all new information that emerge from further developments of the TomorrowNow lawsuit to determine if the provision should be adjusted in the future, which could result in a change to the estimate provided in the table above.
-
- Our stock-based compensation expenses are subject, among other factors, to share price volatility, volatility in SAP's performance against the Tech PGI index and fluctuations in SAP's workforce. The estimates in the table above are based on certain assumptions regarding these factors. Depending on the future development of these factors the total expense for 2011 may differ significantly from these estimates.
-
- The estimates provided above for stock-based compensation expenses are based on the share-based compensation plans in place on the day of this document and grants under these plans in 2011 as currently planned by management. New share-based compensation plans or changes to the existing plans may make the total amounts for 2011 differ significantly from these estimates.
-
- The estimates provided above for acquisition-related charges are based on the acquisitions performed by SAP through the day of this document. Further acquisitions may make the total amounts for 2011 differ significantly from these estimates.
Bill McDermott, Co-CEO Jim Hagemann Snabe, Co-CEO Werner Brandt, CFO Vishal Sikka, CTO
Investor & Financial Analyst Conference SAPPHIRENOW 2011
May 17, 2011 I Orlando, FL