SAP SE — Investor Presentation 2014

Jun 3, 2014

Financial Analyst Program

SAPPHIRE NOW Orlando

June 3, 2014

Agenda and Safe Harbor

Stefan Gruber, Head of Investor Relations

Agenda

• 1.30 – 1.35 pm Welcome Stefan Gruber
• 1.35 – 1.50 pm Business and Financial Model – Solid Core and Fast-Growing Cloud Luka Mucic, Head of Finance, Global Managing Board Member
• 1.50 – 2.10 pm Leading the Way to Industry Cloud Simon Paris, President Industry Cloud Followed by brief Q&A
• 2.15 – 2.30 pm Product and Innovation Strategy Bernd Leukert, Executive Board Member
• 2.30 – 3.00 pm Executive Q&A Bill McDermott, Werner Brandt, Rob Enslin, Bernd Leukert, Luka Mucic

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.

Business and Financial Model – Solid Core and Fast-Growing Cloud

Luka Mucic, Head of Finance, Global Managing Board Member

Our cloud vision – SAP Cloud powered by SAP HANA

Shift to cloud subscription model What it looks like for a typical deal

OnPremise model simulation

Typical software contract value €1m, 22% maintenance (Enterprise Support)

Cloud subscription model simulation

Contract value €1.35m (due to less discounts), three years contract duration, provisioning and revenue recognition starts 3 months later

SSRS Revenue

Deal Margin

Impact of the shift to cloud on mid-term outlook

Powerful mix shift to high growth, high margin predictable recurring revenue

Strategy for simplification

Simplified deployment model

• Move the 'core' to the cloud with SAP Cloud powered by HANA
• Acceleration in the public cloud in LoB
• ONE Cloud "Suite of best of breed" Cloud
• Simplified On Premise

Simplified products

• SAP HANA Platform for all SAP products
• HANA as a platform for partners and innovation
• Mobile-first User Experience based on SAP Fiori

Simplified engagement

• Consistent digital experience across marketing assets
• Aligned GTM coverage model across Cloud and On Premise
• ONE face to every customer
• Streamlined best-in-class support model

SAP reiterated its outlook for the full year 2014 (unchanged from outlook provided Jan 21, 2014)

	SAP's Outlook FY 2014	Basis for Comparison 2013
Cloud subscription and support revenue (Non-IFRS at cc)	€950m – €1bn	€758m
Software and Software-related Service Revenue (Non-IFRS at cc)	+ 6% – 8%	€14.03bn
Operating Profit (Non-IFRS at cc)	€5.8bn to €6bn	€5.51bn

FX Effects:

If exchange rates remain at the March 2014 level for the rest of the year, the Company expects non-IFRS software and software-related service revenue and non-IFRS operating profit growth rates at actual currency to experience a negative currency impact of approximately 6 percentage points and 8 percentage points respectively for the second quarter of 2014, and of approximately 4 percentage points and 5 percentage points respectively for the full year 2014.

Leading the Way to Industry Cloud

Simon Paris, President Industry Cloud

SAP leads the way to Industry Cloud

CONCEPTUAL

Watch a short video

Industrial companies go digital – New business models emerging based on deep cloud-based process and data integration

Industry centricity Field and development alignment

Board Members

Rob Enslin

Bernd Leukert

Simon Paris

Christoph

Industries

Strategic Industries

• FSI
• Retail
• Public Services + Healthcare
• Telco

Core Industries

• Energy & Resources
• Discrete Manufacturing
• Consumer
• Services

7 Primary Domains

Behrendt Integrated Operating Model

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 14

Unmatched industry expertise by sub industry

Industry Clusters

• 1 Services
• 2 Consumer products
• 3 Public Services & Healthcare
• 4 Manufacturing
• 5 Energy & Res.
• 6 Financial Services

Industry	Expertise
CP	Insurance
Utilities	Life Sciences
Public Sector	Telecom
High Tech	Eng. Const. & Ops
Oil & Gas	Mill Products
Retail	Healthcare
Mining	Aero. & Defense
Prof. Services	Media
Ind. Mach. & Comp.	Defense & Security
Automotive	Higher Educ. & Rsrch
Wholesale	Banking
Transportation & Logistics	Chemicals
Sports & Ent.

Strategic Demand Management		Operations and Asset Management		Multichannel Sales and Marketing		Customer Service and Interaction
Business Planning and Consolidation		Maintenance, Repair, and Overhaul		Multichannel Marketing		Traveler Lovalty Management
Fuel Management			Operational Risk Management		Multichannel Booking		Multichannel Customer Service
Network and Route Performance Management		Real Estate Lifecycle Management		Collaborative Sales Force Automation
					Smart Ticketing
Human Resources	Core Human Resources and Payroll	Talent Management	Time and Attendance Management			Workforce Planning and Analytics
Finance	Financial Planning and Analysis	Accounting and Financial Close	Treasury and Financial Risk Management			Collaborative Finance Operations	Enterprise Risk and Compliance Management
Procurement	Strategic Sourcing and Supplier Management	Procure to Pay with Business Network Collaboration	Business Network Extensions for Procure to Pay
Information Technology	Application Lifecvole Management	IT Infrastructure Management	IT Portfolio and Project Management	IT Service Management		IT Strategy and Governance
Technology and Platform	Big Data	Real-Time Enterorise	Real-Time Analytics	Enterprise Mobility		Enterprise Information Management	Application Integration	Cloud Solutions

Retail & Commercial Banking

Passenger Travel and Leisure

https://rapid.sap.com/se/

Solution Explorer & roadmaps

Solution Explorer

www.sap.com/solutionexplorer

Public source of information by Industry

Detailed Roadmap for every industry and solution area

Joint deliverable with development

In summary

SAP is the ONLY Technology Company in the World

• Field and development aligned by Industry
• Integrated, Consistent, Coherent
• Leveraged investment / agile innovation (Core to Cloud)
• Profitable, Reliable, Secure

SAP has / is the World's

• Deepest Industry expertise
• Leader in Cloud TODAY
• Most significant customer base
• Largest distribution system
• Largest ecosystem

INDUSTRY CLOUD, TODAY, TOGETHER.

In summary

TODAY, TOGETHER.

Product and Innovation Strategy

Bernd Leukert, Executive Board Member

Executive Q&A

Bill McDermott, Werner Brandt, Rob Enslin, Bernd Leukert, Luka Mucic