SAP SE — Investor Presentation 2013

Aug 28, 2013

Commerzbank Sector Conference Week

Rainer Zinow, Senior Vice President Cloud Unit, SAP AG Frankfurt am Main, August 28, 2013

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 "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 forwardlooking 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 forward-looking statements, which speak only as of their dates.

Performing in a fast moving market With SAP's innovation strategy leading the transition Appendix

Market trends and customer requirements

Cloud

Business opportunities through cloud offerings

Consumerization

Business users driving corporate IT decisions

Big Data

Data volume for enterprise applications is doubling every 18 months

Mobility

Smart-phones outsell PCs By 2013, mobile devices will be the primary method of internet access worldwide

Social

Technology allows people to be more connected than ever

New Business Models

Big Data and mobility open opportunities for new business models that customer need to adopt

Cost efficiency

Customer have to manage TCO tightly

Simplification

Companies want simpler infrastructure Users expect intuitive software

Investment Security

Customers require investment security according to their planning horizons

Cycles of IT adoption favor suites

Doubling addressable market through innovation

Source: IDC, CMI, strategy reviews with consulting firms, team analysis

Our market position is stronger than ever

SAP is either number one or the fastest growing company

*Market share growth from 2011 to 2012

Track record of 3 years of double-digit non-IFRS SSRS revenue growth

Non-IFRS SSRS revenue : +10% at cc

Year on year growth rates in % @cc

Non-IFRS Software and cloud subscription revenue reached €1.2 bn and grew 7% at cc

• SAP HANA software revenue achieved €102m (+21 % yoy)

Cloud is gaining momentum

Non-IFRS Software & cloud subscription revenue reached €1.2bn and grew 7% at cc

Solid top and bottom line growth in H1/13 – Improved efficiency in core business with cloud business being on its way to profitability

Total revenue	€7.73 bn +6% / +9%@cc
Software	€1.64 bn -3% / +/-0%@cc		Strong growth momentum from key innovations in H1/13
SSRS	€6.28 bn +9% / +12%@cc	 	HANA €188 m – FY/13 target €650-700m Cloud momentum continued  Cloud subscriptions and support:
Operating Margin	27.4 % -0.2pp / +0.4pp@cc		€350 m (+238%)
Additional FTE's	515 thereof 269 from acquisitions

All numbers non-IFRS

Software & cloud subscription revenue increased 7% at constant currencies yoy in Q2 2013 (3% at actual currencies to €1.17 billion)

Americas – Software & cloud +18%*

• Cloud in North America already contributes more than 25% of overall software & cloud subscription revenues
• Driven by excellent growth in software and cloud in Latin America

EMEA – Software & cloud +3%*

• Even in light of continued market uncertainty in Europe, we saw a solid performance in EMEA
• High single-digit software growth in Germany and growing strong double-digits in Africa and the Middle East

APJ – Software & cloud -7%*

• Below expectations, mainly due to continued macroeconomic challenges
• Trend consistent with what our competitors and partners experienced

* Non-IFRS software and cloud subscription revenue on this page is calculated as the combination of software revenue based on location of negotiation and cloud subscription and support revenue based on customer location; growth rates at constant currencies.

Performing in a fast moving market With SAP's innovation strategy leading the transition Appendix

SAP is leading the Cloud transition in the industry and Positioning SAP's Cloud strategy – Choice of public, private & hybrid cloud

SOCIAL PEOPLE TO PEOPLE COLLABORATION

BUSINESS NETWORK BUSINESS TO BUSINESS COLLABORATION

SAP HANA CLOUD PLATFORM Application Development | Integration | Database and Analytics | Foundation

SAP HANA Enterprise Cloud (Managed Cloud Services) HANA Cloud Platform is the foundation of our entire approach

• Power of real time combined with the simplicity of the cloud
• Choice with fast time to value
• Mission critical operations with cloud elasticity

Ensemble of all categories

>238,000 customers & >180 countries

40 years of supporting mission critical enterprise systems

Expanding SAP's 2015 medium-term ambition

Exceed €20 billion of total revenue Reach 35%non-IFRS operating margin

Reach 1 billion people

Build a €2 billioncloud business

Become the fastest growing database company

Performing in a fast moving market With SAP's innovation strategy leading the transition Appendix

SAP driving the transition to the cloud and gaining market share – Annual cloud revenue run rate3) exceeded €930 million

• Total cloud revenue (Cloud division), Q2 2013: €233 million
• Non-IFRS cloud subscription and support revenue, Q2 2013: €183 million, +166% yoy (+171% @cc)
• Deferred cloud subscription and support revenue1) (non-IFRS as of June 30): €361 million +68% yoy
• Cloud subscription and support backlog2): €800 million as of December 31, 2012
• Run rate: Annual Cloud revenue run rate3) exceeded €930 million
• Number total cloud users: > 30 million
• Ariba segment:
• trailing 12 month network spend volume4): \$465 billion (+27% yoy)

• 1.1 million companies connected through the Ariba network, the world's largest web-based trading community

¹⁾ Beginning in Q1 2013, SAP discloses non-IFRS deferred cloud subscription and support revenue, which is a subset of the total non-IFRS deferred revenue number reported on the balance sheet.

²⁾ Cloud subscription and support backlog represents expected future cloud subscription and support revenue that is contracted but not yet invoiced and thus not recorded in deferred revenue

³⁾ The annual revenue run rate is the second quarter 2013 cloud division revenue of €233 million multiplied by 4.

⁴⁾ Network spend volume is the total value of purchase orders transacted on the Ariba Network in the trailing 12 months

SAP's five strategic categories

Cloud – Achieve velocity in your lines of business…

Improve the way you buy, sell, and manage cash by connecting, collaborating, and transacting with all your global trading partners

Large enterprise offering

HANA Cloud Integration (Data & Process Integration)

Planned acquisition of hybris

• Founded in 1997, hybris is a rapidly growing and widely recognized leader in e-commerce technology
• Today, shoppers expect much more than an online presence. They demand a consistent brand experience and a seamless shopping experience across all channels – in person, online, mobile and more
• Hybris helps businesses on every continent sell more goods, services and digital content through an ever-growing number of delivery channels, devices and touch points
• The acquisition positions SAP to deliver the next-generation e-commerce platform, with the choice of on-premise or cloud deployment, as enterprises around the world seek to optimize the customer experience for businesses and consumers
• The combination of hybris' commerce platform with the flagship in-memory platform SAP HANA, analytical and cloud applications, and the SAP JAM social software platform will give SAP a significant edge in delivering new levels of customer insight and engagement – and define the next generation customer experience

Segment reporting Q2 2013

€ millions		On Premise Division			Cloud Division
				On
	On	On	On	Premise			Cloud	Cloud
	Premise	Premise	Premise	Division			Division	Division
	Product	Services	Division	Total	Cloud		Total	Total	Total	Total
Q2 2013			Total 2013	2012	Applications	Ariba	2013	2012	2013	2012
Software	982	0	982	1.058	0	0	0	0	982	1.059
Cloud subscriptions & support	0	0	0	0	97	86	183	69	183	69
Software & cloud subscription	982	0	982	1.058	97	86	183	69	1.165	1.127
Support	2.172	0	2.172	2.012	3	8	11	3	2.182	2.014
SSRS	3.153	0	3.153	3.070	100	94	194	72	3.347	3.142
PSOS	0	705	705	754	18	21	39	20	744	774
Total revenue	3.153	705	3.858	3.824	118	115	233	92	4.091	3.916
Cost of revenue	-471	-549	-1.020	-1.052	-46	-42	-88	-49	-1.108	-1.101
Gross profit	2.683	156	2.838	2.772	72	73	145	43	2.984	2.815
Cost of sales & marketing	-894	0	-894	-854	-82	-39	-122	-62	-1.015	-916
Reportable Segment Profit/Loss	1.789	156	1.945	1.918	-11	34	23	-19	1.968	1.900

Segment reporting H1 2013

€ millions			On Premise Division		Cloud Division
				On
	On	On	On	Premise			Cloud	Cloud
	Premise	Premise	Premise	Division			Division	Division
	Product	Services	Division	Total	Cloud		Total	Total	Total	Total
H1 2013			Total 2013	2012	Applications	Ariba	2013	2012	2013	2012
Software	1.638	0	1.638	1.695	0	0	0	1	1.638	1.696
Cloud subscriptions & support	0	0	0	0	184	167	350	104	350	104
Software & cloud subscription	1.638	0	1.638	1.695	184	167	351	105	1.989	1.799
Support	4.271	0	4.271	3.964	9	15	24	4	4.295	3.968
SSRS	5.909	0	5.909	5.659	193	182	375	109	6.284	5.768
PSOS	0	1.360	1.360	1.474	40	42	82	31	1.443	1.505
Total revenue	5.909	1.360	7.270	7.133	233	224	457	140	7.727	7.273
Cost of revenue	-928	-1.088	-2.016	-2.076	-88	-88	-176	-85	-2.192	-2.162
Gross profit	4.982	273	5.254	5.057	144	136	281	55	5.535	5.111
Cost of sales & marketing	-1.709	0	-1.709	-1.594	-154	-76	-230	-98	-1.939	-1.692
Reportable Segment Profit/Loss	3.273	273	3.545	3.463	-9	60	51	-44	3.596	3.419

Q2 2013: SAP maintained operating discipline and increased its operating profit despite strong currency headwinds

€ millions, unless otherwise stated		IFRS			Non-IFRS
Revenue Numbers	Q2/13	Q2/12	∆%	Q2/13	Q2/12	∆%	∆% at cc
Software	982	1.059	-7	982	1.059	-7	-3
Cloud subscriptions and support	159	52	206	183	69	166	171
Software & Cloud subscriptions	1.141	1.110	3	1.165	1.127	3	7
Support	2.177	2.013	8	2.182	2.014	8	11
SSRS revenue	3.318	3.124	6	3.347	3.142	7	10
PSOS revenue	744	774	-4	744	774	-4	-1
Total revenue	4.062	3.898	4	4.091	3.916	4	8
Operating Expense Numbers
Total operating expenses	-3.074	-2.977	3	-2.873	-2.743	5	7
Profit Numbers
Operating profit	988	921	7	1.219	1.173	4	10
Finance income, net	-23	-11	<-100	-23	-11	<-100
Profit before tax	963	865	11	1.194	1.117	7
Income tax expense	-239	-204	17	-320	-286	12
Profit after tax	724	661	10	874	831	5
Operating margin in %	24,3	23,6	+0,7pp	29,8	30,0	-0,2pp	+0,6pp
Basic earnings per share, in €	0,61	0,55	11	0,73	0,7	4

H1 2013: Solid top and bottom line growth

€ millions, unless otherwise stated		IFRS			Non-IFRS
Revenue Numbers	H1/13	H1/12	∆%	H1/13	H1/12	∆%	∆% at cc
Software	1.638	1.696	-3	1.638	1.696	-3	0
Cloud subscriptions and support	296	81	266	350	104	238	243
Software & Cloud subscriptions	1.935	1.777	9	1.989	1.799	11	14
Support	4.286	3.966	8	4.295	3.968	8	11
SSRS revenue	6.220	5.743	8	6.284	5.768	9	12
PSOS revenue	1.443	1.505	-4	1.443	1.505	-4	-2
Total revenue	7.663	7.248	6	7.727	7.273	6	9
Operating Expense Numbers
Total operating expenses	-6.029	-5.696	6	-5.607	-5.266	6	8
Profit Numbers
Operating profit	1.634	1.551	5	2.120	2.007	6	11
Finance income, net	-37	-26	41	-37	-25	48
Profit before tax	1.584	1.472	8	2.070	1.929	7
Income tax expense	-340	-368	-8	-507	-515	-2
Profit after tax	1.244	1.104	13	1.563	1.414	11
Operating margin in %	21,3	21,4	-0,1pp	27,4	27,6	-0,2pp	+0,4pp
Basic earnings per share, in €	1,04	0,93	12	1,31	1,19	10

Non-IFRS operating margin increased by 0.6pp at constant currency in the second quarter

Non-IFRS operating profit:

• +4% to €1.22bn
• +10% to €1.29bn at cc

Non-IFRS operating margin:

• -0.2pp to 29.8% (Q2/12: 30.0%)
• Solid increase of 60 basis points to 30.6% in non-IFRS operating margin at cc despite the impact from Ariba of approx. 40 basis points
• Demonstrating that efficiency in our core business has further improved and cloud business is on its way to being profitable

* At constant currencies

Non-IFRS operating margin increased by 0.4pp at constant currency in the first half

Non-IFRS, H1/13

Non-IFRS operating profit:

• +6% to €2.12bn
• +11% to €2.22bn at cc

Non-IFRS operating margin:

• -0.2pp (+0.4pp at cc) to 27.4% (H1/12: 27.6%)
• Non-IFRS operating profit and operating margin were affected by the acquisitions of SuccessFactors and Ariba to the same extend. The operating margin was impacted in total by approximately 60 basis points.

* At constant currencies

IFRS operating profit increased by 7% in Q2 2013

* At constant currencies

IFRS operating profit increased by 5% in H1 2013

IFRS operating profit:

+5% to €1.63bn (Q2/12: €1.55bn)

IFRS operating margin:

Operating margin decreased slightly by 0.1 percentage points to 21.3% (H1 2012: 21.4%)

© 2013 SAP AG. All rights reserved. 29

Gross margin improved by 100 bps Q2 2013

* Professional services and other services

Gross margin improved by 130 bps H1 2013

Gross Margin 71.6% | +1.3pp SSRS Margin 83.6% | +0.2pp Professional Services* Margin 19.3% | -0.7pp Services* revenue €1.5bn Services* revenue €1.4bn Service* expenses €1.2bn Service* expenses €1.2bn Non-IFRS, H1/13 SSRS + services* expenses €2.2bn SSRS revenue €5.8bn SSRS expenses €1.0bn SSRS expenses €1.0bn Total revenue €7.3bn Total revenue €7.7bn SSRS + services* expenses €2.2bn SSRS revenue €6.3bn H1/12 H1/13 H1/12 H1/13 H1/12 H1/13

* Professional services and other services

S&M to total revenue ratio increased 140 bps but down sequentially by 60bps showing results of efforts taking advantage of investments

Non-IFRS, Q2/13

		R&D S&M as a % of Total Revenue as a % of Total Revenue 13.5% 0.1pp 24.8% +1.4pp					as a % of Total Revenue	G&A 5.1% -0.2pp
Total revenue €3.9bn		Total revenue €4.1bn		Total revenue €3.9bn	S&M	Total revenue €4.1bn	S&M	Total revenue €3.9bn		Total revenue €4.1bn
	R&D expenses €0.5bn		R&D expenses €0.6bn		expenses €0.9bn		expenses €1.0bn		G&A expenses €0.2bn		G&A expenses €0.2bn
Q2/12			Q2/13		Q2/12		Q2/13		Q2/12	Q2/13

S&M to total revenue ratio increased mainly due to additional sales headcount in H1 to capture growth opportunities

Non-IFRS, H1/13

Balance sheet, condensed June 30, 2013, IFRS

Assets € millions	06/30/13	12/31/12
Cash, cash equivalents and other financial assets	3,681	2,631
Trade and other receivables	3,379	3,917
Other non-financial assets and tax assets	716	450
Total current assets	7,776	6,998
Goodwill	13,333	13,227
Intangible assets	2,996	3,234
Property, plant, and equipment	1,751	1,708
Other non-current assets	1,637	1,543
Total non-current assets	19,717	19,711
Total assets	27,494	26,710

Equity and liabilities € millions	06/30/13	12/31/12
Financial liabilities	883	870
Deferred income	3,125	1,386
Provisions	624	843
Other liabilities	3,164	3,449
Current liabilities	7,797	6,547
Financial liabilities	3,859	4,446
Provisions	330	361
Deferred income	62	62
Other non-current liabilities	1,068	1,123
Non current liabilities	5,319	5,991
Total liabilities	13,116	12,538
Total equity	14,378	14,171
Equity and liabilities	27,494	26,710

Operating cash flow in H1 2013 exceeded €2.4 billion – Highest number ever achieved in a first half

€ millions, unless otherwise stated	01/01/13 - 06/30/13	01/01/12 - 06/30/12	∆
Operating cash flow	2,482	2,400	+3%
- Capital expenditure	-265	-275	-4%
Free cash flow	2,217	2,125	+4%
Free cash flow as a percentage of total revenue	29%	29%	+/-0pp
Cash conversion rate	2.00	2.17	-8%
Days sales outstanding (DSO)	62	61	+1 day

Total group liquidity increased up to €3.5 billion due to high operating cash flow and despite of dividend payment

1) Cash and cash equivalents + restricted cash + current investments

• 2) Business combinations, net of cash and cash equivalents acquired amounted to -€99m
• 3) Total Group Liquidity less financial liabilities (=bank loans, private placement transactions and bonds); corresponds with net liquidity 2 for more details see second quarter and half year Interim Report

SAP updated its outlook for the full year 2013

• SAP reaffirms its full year 2013 non-IFRS operating profit outlook to be in a range of €5.85 billion €5.95 billion at constant currencies (2012: €5.21 billion).
• Although the difficult macroeconomic environment in particular in Asia Pacific Japan and the rapid transition to the cloud have resulted in lower software revenue expectations, SAP remains committed to be a double-digit growth company with at least 10% growth in non-IFRS software and software-related service revenue at constant currencies in full year 2013 (2012: €13.25 billion). This replaces the previous growth outlook for non-IFRS software and software-related service revenue of 11% – 13% at constant currencies and the underlying guidance for software and cloud subscription revenue.
• In addition, SAP reaffirms its outlook for the fast-growing innovation categories cloud and in-memory.
• SAP continues to expect full year 2013 non-IFRS cloud subscription and support revenue of around €750 million at constant currencies (2012: €343 million) and
• full year 2013 SAP HANA software revenue in a range of €650 €700 million (2012: €392 million).
• SAP now projects a full-year 2013 IFRS effective tax rate of 24.0% 25.0% (previously 25.5% 26.5%) (2012: 26.2%) and a non-IFRS effective tax rate of 25.5% – 26.5% (previously 27.0% – 28.0%) (2012: 27.5%).

Non-IFRS adjustments

IFRS Profit Measure	Actual Amounts H1/2013	Actual Amounts H1/2012	Estimated Amounts for FY/2013
Deferred revenue write-down	€64m	€25m	€65m to €75m
Discontinued activities	€0m	€-5m	< €10m
Share-based compensation expenses	€109m	€181m	€350m to €390m
Acquisition-related charges	€283m	€250m	€560m to €600m
Restructuring charges	€31m	€4m	€50m to €70m

Explanation of non-IFRS measures

SAP has provided its non-IFRS estimates for the full-year 2013. For a more detailed description of all of SAP's non-IFRS measures and their limitations as well as our constant currency and free cash flow figures see Non-IFRS Measures and Estimates online.

Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS number of the previous year's respective period.

For a more detailed description of all of SAP's non-IFRS adjustments and their limitations as well as our constant currency and free cash flow figures see Non-IFRS Measures and Estimates online.