SAP SE — Investor Presentation 2015

Sep 22, 2015

SAP – The World's Leading Business Software Company

Munich, September 22nd, 2015 Luka Mucic, CFO and COO, SAP SE

SAP's strategy is to help customers win in the digital economy 1

Only SAP can help businesses fulfil their own digital agenda

SAP offers the only end-to-end digital business solution – SAP HANA enables digitization across 5 business pillars Through organic innovations and strategic acquisitions, SAP has the best solution portfolio and expertise required to enable a digital strategy. SAP is the preferred choice to turn a digital vision into reality.

Our customers' success will help us deliver on our strategy and vision

Re-Imagine Business Models

Re-Imagine

Business Processes & Work

Help The World Run Better

& Improve People's Lives

SAP's strategy – financial impact

A fast growing Cloud business changes SAP's revenue mix – shifting to more subscription based revenue and increasing share of more predictable revenue

43% 57% €17.5 bn 2014 Support + Cloud subs – share of revenue All other revenue 70-75% 20 -25% €26-28 bn 2020 ambition +18pp

Share of more predictable revenue

Share of more predictable revenue is expected to increase to 70-75% by 2020

the group in short/medium term

6

Driving solid core license revenue and growing support business – Ramping cloud profitability through increased scale

Software license revenue

• Driven by innovations next generation Business Suite S/4HANA, Customer Engagement Commerce and strategic industries
• Dependent on macroeconomic environment, in particular in emerging markets
• SAP outlook implies moderate decline in software revenue due to secular shift to cloud and assumption of unchanged market conditions

Support revenue

• High renewal rates of ~97-98%
• Enterprise support is today our de facto standard with an acceptance rate of net new customers of 99% in Q4/14

Cloud revenue

• Cloud profitability ramps as share of new bookings reduces over time

SAP has a broad Cloud offering with three different business models

Public Cloud

• Classical subscription SaaS model for cloud applications
• Most comparable cloud offering to pure cloud vendors
• Mostly 3 years contracts
• Massively scaling while continuing to improve efficiency

• Primarily annual pre-billing which results in deferred revenue

• The world's largest network of its kind, with Ariba, Concur, and Fieldglass

• Steady predictable revenue stream with a very high stickiness
• Primarily 'Pay-as-you-go' model with contractual commitments

• Stable revenue growth rates

• Start-up business supporting large customers' transition to HANA and Cloud (significant cross selling potential)

• Mission critical processes
• High set-up costs and significant ramp up weighs on margins short term – while scaling & leveraging partnerships in future
• Pre-billing with short (monthly) billing terms, consequently lower deferred revenues

~40%

*long term gross margin

~80% *long term gross margin

~80% *long term gross margin

* Long term cloud subscription and support gross margin potential in mature state (excluding cloud-related professional services)

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 8 © 2015 SAP SE or an SAP affiliate company. All rights reserved.

Core and Cloud business will both contribute to operating profit expansion

Non-IFRS

Run Simple

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 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 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.