SAP SE — Investor Presentation 2014

Sep 24, 2014

SAP – The World's Leading Business Software Company

Luka Mucic, Member of the Executive Board of SAP SE, CFO and COO, SAP SE Munich, September 24, 2014

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.

Transformational technologies offer significant potential to drive business innovation in the enterprise software space

Mobile

• Preferred access point for business applications in the future

• 15 billion web-enabled devices in 2013

• Connected business and social networks

• 1 billion people on Facebook
• Social media is the new game plan

Big Data

• Data doubling every 18 months Real-time analytics for behavioral and predictive insights
• Explosion of unstructured data

• Internet of Things

• Lower Total Cost of Ownership

• Quick and easy implementation
• Constant access to innovation

More than 60% of CEOs expect 15-50% of their earnings growth in the next 5 years to come from technology-enabled business innovations. "

McKinsey study, 2013

The world is changing

• Rising middle class (2.5x by 2030) resulting in resource constraints
• Emerging markets as growth drivers (China, Russia, Middle East, Africa) " • Innovative software solutions

Customer needs are changing

• Instant use, instant value
• Superior user experience
• New business models emerging (real-time connectivity)
• Choice of consumption options

Customers seek outcomes not products Rethinking business models

© 2014 SAP SE or an SAP affiliate company. All rights reserved. 4

Foundation of a winning strategy

SAP's addressable market		SAP position*	Innovation and M&A drive the expansion of our addressable market
	\$350bn
	Cloud	#2 €1.2bn #1 in cloud rev. run rate in no. users* fastest growing cloud vendor at scale	SFSF Ariba hybris C4C 2012 2012 2013	Fieldglass Concur 2014/15e 2014
	Database & Technology	fastest growing database	Sybase SAP HANA 2010
\$110bn	Mobile	#1 in mobile	Sybase Syclo 2010 2012
BI/Analytics	Analytics	#1 in analytics	BusinessObjects 2008	SAP Lumira
Middleware Core ERP + Suite	Applications	#1 in applications	SAP Business Suite powered by SAP HANA Geographic expansion SAP Business Suite for 25 Industries (e.g. core Banking, transportation management) Line-of-business specific solutions Rapid Deployment Solutions
2010	2020

SAP is expanding the world's largest Business Network to innovate the future of business within and between companies – and people

SAP Business Network differentiates the Cloud –

Driving value by leveraging business networks to reduce costs and increase collaboration

Concur – a perfect fit with our key strategic initiatives: Run Simple, Cloud and Network

Concur's solutions and network platform help the individual traveler 'Run simple' by transforming complex processes in travel and expenses

Business metrics:

• Global corporate T&E spend \$1.2 trillion annually
• Concur spend >\$50bn
• After completion combined SAP's Business Network spend >\$600bn annually

• 2 independent SaaS company with 23,000 customers and 4,200 outstanding professionals

• 25 million active users
• Once deal closes SAP's total combined cloud users > 50 MILLION

SAP will be the undisputed business network company – with the most cloud users of any cloud company in the world

Revenue:

• Non-GAAP Revenue run-rate* >\$700M
• 84% of revenues is in U.S., the global scale of SAP is a major game changer
• Only ~30% of Concur's customers run SAP

Growth:

• High-growth business with +28% yoy**

Profitability:

• Non-GAAP operating margin was 9.9%**

Terms of intended acquisition:

• Transaction anticipated to be closed in Q4/14 or Q1/15, pending shareholder and regulatory approvals
• Per-share purchase price: \$129, represents
• a premium of 20% to September 17 closing price and 21% to 1 month volumeweighted average price
• a premium of 28% to the closing price on September 2, 2014, the day before the Bloomberg article indicating that Concur was exploring a sale
• Funded from a credit facility agreement of up to €7bn to cover purchase price, target debt refinancing and acquisition-related costs
• SAP has undergone an external credit rating process with two agencies (investment grade: stable outlook, Moody's 'A2'/ S&P 'A')

* trailing 12 month annual revenue, ** in latest reported quarter, end June 2014

Industry Portfolio (including SAP Business Suite)

LoB Portfolio (HR, Finance, Procurement, Sales, Service & Marketing)

Analytics (BW, BI, EPM, GRC, Big Data)

3 rd Party Apps (on HANA Marketplace)

SAP HANA Cloud Platform

SAP HANA offers a unique selling proposition A differentiating platform and a great simplifier

Differentiators

• Real-time
• Massive simplification and scale
• Open
• More than a database
• Big data ready and proven

3,600 SAP HANA Customers 1,500

Start-up companies building apps on HANA >1,200 SAP Business Suite on HANA Customers

>5,700 Trained SAP HANA partners

© 2014 SAP SE. All rights reserved. 9

SAP offers broad choice to the customer Unique end-to-end deployment options

Solutions

Packaged Custom

Deployment

On Premise Cloud

• Private
• Public
• Managed

Licensing Perpetual Subscription

Consumption

Desktop Mobile

Flexible deployment options

Run all SAP solutions On Premise

on SAP HANA

Hybrid

Ariba SuccessFactors

Cloud

Leverage SAP Cloud Build, run, deploy all applications in the Cloud

Complete, integrated functionality – delivered the way customers want

© 2014 SAP SE. All rights reserved. 10

'Run simple.' strategy is resonating with cloud and SAP HANA at its core – simplify business experience & consumption for our customers

© 2014 SAP SE. All rights reserved. 11

Strong cloud momentum and solid core business while transitioning to the cloud profitably is a top priority for SAP

H1/14

With +8% SSRS revenue we delivered solid growth at the high end of FY outlook range and continue to improve our operating profit up 7% resulting in a margin expansion.*

All Numbers are non-IFRS; * non-IFRS at constant currencies

Summary

Market leader in applications, analytics, and mobile, part of the largest and fastest growing IT market segment

2 3 Sticky business model with high proportion of predictable, visible and highly profitable revenues

Track record of strong organic growth and valueenhancing innovation strategy

Strong and stable operating results and free cash flow generation 5 6

Solid balance sheet with conservative approach to leverage

© 2014 SAP SE. All rights reserved. 13

Experienced and highly skilled management team