SAP SE — Investor Presentation 2015

Sep 9, 2015

SAP – The World's Leading Business Software Company

July 2015, Investor Presentation

Vision & Strategy

For 43 years, SAP has helped businesses at every major inflection point:

Globalization Internet Data processing SAP R/2: Helped customers SAP R/3 and SAP ECC: SAP R/1: Enabled customers successfully manage large Enabled customers to take to get a complete view of their global enterprises on a advantage of client-server business with real-time mainframe architecture, and Internet technologies. processing of data across while retaining the Created a unified graphical integrated modules for integration and real-time user interface and new materials, procurement, and processing capabilities of functional components. accounting. SAP R/1.	Digital SAP S/4HANA: Helps customers get ahead of the next inflection point – the Digital Economy. We are now focused on eradicating complexity with SAP S/4HANA.
	2015
1982 1992

Today, a new digital economy powered by real-time data is emerging, and SAP is guiding its customers through unprecedented change.

Reimagine business in the digital economy

• The entire value chain is digitized including the digital core which serves as the foundation for business innovation and optimization.
• The digital enterprise interconnects all aspects of the value chain to drive and anticipate business outcomes in realtime.
• Enterprises across industries can lead the digital transformation by completely reimagining business models, business processes and work.

The innovation adoption model for digital transformation

Transformational level	Business impact	Business processes	Business model	Business outcome
NEW BUSINESS MODELS	• Business Innovation • New customers • New markets	NEW	NEW
Improved PRODUCTS	• Optimize products • Offer new products/services	NEW	OLD
Improved PROCESSES	• Improve single processes Replace single processes • • Change end to end processes	NEW	OLD
Improved DECISIONS	• Transparency • Decision support • Decision automation	OLD	OLD
Technical SOLUTION	• Velocity

SAP HANA architecture is revolutionary

Speed and agility require a modern technology platform

	NEW APPS		EXTENSION	INTEGRATION
Applications (examples)				ISV & Partner APPS
		Open Programming Containers (e.g., Java, XS2)
Platform	UX (e.g., Mobile/ Fiori)	Analytics (e.g.,, Lumira)	Integration (e.g., HANA Cloud Integration,)	Security (e.g., SSO, Identify)
	HANA Data Platform Libraries Big Data IoT (e.g., HANA DB, ASE) (e.g., graph, predictive) (e.g. Hadoop, Spark)
Infrastructure	Infrastructure Delivery Elastic
as a Service	SAP Data Centers	Partner DCs	Customer DCs	Deployment

1,900 Since 2010, SAP tripled its addressable market: \$350bn Startups developing on HANA platform

SAP HANA platform is:

• Real-time, In Memory
• Open, Developer Friendly
• Embeds Mobile and Analytics
• Secure
• Cloud Ready

HANA success:

7,200 SAP HANA customers (unique)

900 S/4HANA customers (released Q2/15)

8,600 trained partners

SAP S/4HANA value

Digitize beyond the core, embrace the digital economy

Run simple with the digital business foundation of the 21st century

• Recruit and on-board the best workforce, simplify their work, and ensure regulatory and compliance
• Manage the total workforce lifecycle from recruiting, on-boarding, performance, compensation and learning

• Enable the workforce to easily access the right information across any device

• Drive new business insight by capturing and analyzing real-time information on big data

• Embed device data across the value chain to create new business models
• Leverage an open innovation platform to quickly integrate, extend and build innovative apps (onpremise, in the cloud)

SAP HANA Cloud Platform

• Drive digitized mission-critical business processes across all operations
• Get instant business insight on one single source of live information on any device

• Predict and simulate to anticipate future business outcomes

• Business Network Collaboration

• Leverage the broadest business network for travel and entertainment, direct and indirect material, labor and services
• Leverage services from partners to vastly extend the value of core offerings
• Operate on a global basis, meet data security standards and operate at industry best standards

Customer Engagement and Commerce

• Orchestrate business processes across marketing, commerce, sales and service
• Deliver personalized experiences in context for each interaction
• Build a golden customer profile, with an enriched view of the customer from multiple data sources

Digitization of core processes is critical to scale up Example: Digital commerce – fulfillment example

Minimum viable product End-to-end digitized

Digital store front Batch fulfillment

Digital shopper experience

• Mobile commerce
• In store navigation
• Easy ordering
• Personalized coupons
• Curated experience

Limited number of variants

Weekly or daily planning, fulfillment and delivery tact

Low flexibility for order changes and responses to unplanned down time, supply problems, etc.

Digital store is a typical MVP for fast market entry

Digital store front

Marketing in real time to the Segment of ONE based on individual customer activities on all channels

Individualized advertisements, discounts, product configurations, product recommendations, etc.

Lot size one

Mass customization

supported by real time

• fulfillment monitoring
• processing of customer change requests
• responses to unplanned downtimes
• responses to changed parts availability • etc.

Digitized core is needed for consistent customer experience

Shift to more subscription-based revenue

While offering end-to-end digital business solutions SAP is shifting to more subscription-based revenue,

Year of Service

with 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

Business Network 1 2 3

• 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

Private Cloud

• 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

A fast growing Cloud business changes SAP's revenue mix,

SAP will have a much larger cloud business in 2020 relative to the core business – change in revenue mix weighs on blended operating margin for the group in short/medium term

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 14

together with solid license revenue and growing support revenue.

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 plans for fast cloud growth, as well as growing predictable revenue and operating profit.

2015 guidance

€1.95bn to €2.05bn @cc Cloud subscription

8% to 10% @cc Cloud & software growth

€5.6 to €5.9bn @cc Operating profit

ambition

€3.5 to €3.6bn Cloud subscription

€21 to €22bn Total revenue

65% to 70% Support + Cloud subscription (share of revenue)

€6.3 to €7bn Operating profit

€7.5 to €8bn Cloud subscription

2020

€26 to €28bn Total revenue

70% to 75% Support + Cloud subscription (share of revenue)

€8 to €9bn Operating profit

Mid-term Ambition

• ambition Fast growing Cloud business
• Growing cloud business 7X (2014–2020), reflecting organic growth rates unmatched for a company of our scale
• Adding close to €10bn total revenue by 2020
• Cloud subscription and support expected to overtake software licenses in 2018. At that time SAP expects to reach a scale in its cloud business that will clear the way for accelerated operating profit expansion.
• Solid core business with resilient support revenue stream

Financial Performance & Outlook

Key performance metrics Q2/15 – Strong start in 2015

Cloud and Software Revenue (€ bn) IFRS Non-IFRS +21% 4.06 +21% (+9%*) 3.36 Q2/14 Q2/15 4.06 3.36 Q2/14 Q2/15

Software Licenses and Support Revenue (€ bn) IFRS Non-IFRS 3.51 3.12 Q2/14 Q2/15 3.51 3.12 Q2/14 Q2/15 +13% +13% (+3%*)

* At constant currencies

Transitioning to the cloud

• Non-IFRS cloud subscriptions and support revenue: +129% yoy to 555m (+92% at cc)1)
• New cloud bookings key measure for SAP's sales success in the cloud: +162% to €203m2)
• Cloud subscriptions and support backlog3): €2.3bn as of Dec 31, 2014, +94% yoy
• Cloud applications total subscribers: ~82 million
• SAP Business Network:
• the world's largest network of its kind
• brings together Ariba, Concur and Fieldglass into one operating unit which is reported as a separate business segment
• total segment revenue was €400m (€333m at cc) in Q2, yoy +194% (+145% at cc)

• ~1.9m connected companies trade >\$800bn of commerce4) on this network.

• 3) Cloud subscription and support backlog represents expected future cloud subscriptions&support revenue that is contracted but not yet invoiced and thus not recorded in deferred revenue.

• 4) Network spend volume is the total value of purchase orders transacted on the Ariba, Concur and Fieldglass Networks in the trailing 12 months.

¹⁾ For Q2/15, Fieldglass contributed €21 million and Concur contributed €137 million to SAP's Non-IFRS cloud subscriptions and support revenue at constant currencies. Fieldglass closed on May 2, 2014.

²⁾ New cloud bookings consist of all order entry of a given period that is expected to be classified as cloud subscription and support revenue and results from purchases by new customers and from incremental purchases by existing customers. The order amount must be contractually committed (i.e. variable amounts from pay-per-use and similar arrangements are not included). Consequently, due to their uncommitted pay-per-use nature Ariba and Fieldglass network transaction fees are not reflected in the new cloud bookings metric. Amounts included in the measure are annualized. Concur contributed €46 million to SAP's new cloud bookings in the second quarter.

SAP is able to drive the combination of fast cloud topline growth and expanding profit at the same time

€ millions, unless otherwise stated	IFRS Non-IFRS
Revenue Numbers	Q2/15	Q2/14	∆ %	Q2/15	Q2/14	∆ %	∆% at cc
Cloud subscriptions and support	552	241	129	555	242	129	92
Software licenses	979	957	2	979	957	2	- 7
Software support	2,531	2,158	1 7	2,531	2,160	1 7	7
Software licenses and support	3,510	3,116	1 3	3,510	3,117	1 3	3
Cloud and software	4,062	3,357	2 1	4,065	3,359	2 1	9
Services revenue	908	794	1 4	908	794	1 4	3
Total revenue	4,970	4,151	2 0	4,972	4,153	2 0	8
Operating Expense Numbers
Total operating expenses	-4,269	-3,453	2 4	-3,578	-2,917	2 3	1 1
Profit Numbers
Operating profit	701	698	1	1,394	1,236	1 3	1
Finance income, net	-11	1 7	<-100	-11	1 7	<-100
Profit before tax	637	719	-11	1,330	1,257	6
Income tax expense	-168	-163	3	-369	-319	1 6
Profit after tax	469	556	-16	960	938	2
Operating margin in %	14.1	16.8	-2,7pp	28.0	29.8	-1,7pp	-2,0pp
		0.47	-16	0.8		2

Regional Performance1) Q2/15

• EMEA: solid growth with a 10% increase in non-IFRS cloud and software revenue
• Non-IFRS cloud subscriptions and support revenue grew by 94% with triple-digit growth in new cloud bookings.
• Some highlights in the region were very strong across cloud and software in the Middle East and solid growth in Germany, France and the UK.
• Americas: +36% cloud and software revenue yoy
• Cloud subscriptions and support revenue +141% with new cloud bookings nearly tripling, driven by a very strong performance in North America.
• USA was a highlight with a strong performance across cloud and software.
• Regional macro-economic issues impacted results across Latin America
• APJ: cloud subscriptions and support revenue +138%, driving cloud and software revenue up 19%
• New cloud bookings grew triple-digits
• Japan continued its recovery with another strong quarter across cloud and software

1) Revenues calculated based on customer location; All numbers are non-IFRS; Growth rates as reported.

Gross margin declined by 130 bps Q2/15

Non-IFRS

* Cloud & Software revenues / expenses

Cost ratios Q2/15

Non-IFRS

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 23

Operating cash flow increased by 8% to €2.8bn

€ millions, unless otherwise stated	01/01/15 - 06/30/15	01/01/14 - 06/30/14	∆
Operating cash flow	2,775	2,575	+8%
- Capital expenditure	-276	-304	-9%
Free cash flow	2,500	2,271	+10%
Free cash flow as a percentage of total revenue	26%	29%	-3pp
Cash conversion rate	3.15	2.36	+33%
Days sales outstanding (DSO in days)	68	64	+4

Total group liquidity improved by more than €750m while reducing group debt by more than €650m

Outlook for the full-year 2015

	Actual Performance H1/15	SAP's Outlook FY 2015	Basis for Comparison 2014
Cloud subscription and support revenue (Non-IFRS at cc)	€896m (+93%)	€1.95bn to €2.05bn (upper end +86%* )	€1.10bn
Cloud and Software Revenue (Non-IFRS at cc)	+ 10%	+ 8% to 10%	€14.33bn
Operating Profit (Non-IFRS at cc)	€2.15bn	€5.6bn to €5.9bn	€5.64bn

If exchange rates stay at the June 2015 average level for the rest of the year, the Company would expect approximately a positive 5 to 8pp currency benefit on cloud and software growth and a positive 5 to 8pp currency benefit on operating profit growth for the third quarter of 2015 and a positive 6 to 9pp and a 7 to 10pp respectively for the full-year 2015.

The above mentioned indication for the expected currency exchange rate impact on actual currency reported figures replaces the earlier indication disclosed in SAP's Earnings announcement on April 21, 2015.

* The upper end of this range represents a growth rate of 86% at constant currencies. Concur and Fieldglass are expected to contribute approximately 50 percentage points to this growth.

Additional outlook information and non-IFRS adjustments

The company continues to expect a full-year 2015 effective tax rate (IFRS) between 25.0% to 26.0% (2014: 24.7%) and an effective tax rate (non-IFRS) between 26.5% to 27.5% (2014: 26.1%).

IFRS Profit Measure	Actual Amounts H1/2014	Actual Amounts H1/2015	Est. Amounts for FY/2015
Revenue adjustments	€5m	€8m	<€20m
TomorrowNow and Versata Litigation	€290m	€0m	€0m
Share-based payment expenses	€124m	€314m	€610m to €650m
Acquisition-related charges	€261m	€371m	€730m to €780m
Restructuring charges	€54m	€418m	€470m to €530m
Sum of all adjustments	€735m	€1,112m	€1,830m to €1,980m

Appendix

Balance sheet, condensed June 30, 2015, IFRS

Assets € millions	06/30/15	12/31/14
Cash, cash equivalents and other financial assets	4,304	4,006
Trade and other receivables	4,521	4,342
Other non-financial assets and tax assets	886	650
Total current assets	9,710	8,999
Goodwill	22,157	20,866
Intangible assets	4,557	4,604
Property, plant, and equipment	2,145	2,102
Other non-current assets	2,374	1,747
Total non-current assets	31,233	29,319
Total assets	40,944	38,318

Equity and liabilities € millions	06/30/15	12/31/14
Trade and other payables	989	1,035
Deferred income	4,196	1,680
Provisions	494	150
Other liabilities	4,091	5,710
Current liabilities	9,769	8,575
Financial liabilities	9,097	8,980
Provisions	154	151
Deferred income	63	78
Other non-current liabilities	1,058	1,001
Non current liabilities	10,373	10,210
Total liabilities	20,142	18,785
Total equity	20,802	19,533
Equity and liabilities	40,944	38,318

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 29

How to look at Cloud subscription deals

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 30

Safe Harbor Statement and contacts

Stefan Gruber Head of Investor Relations Phone: +49 6227 7-44872

Johannes Buerkle Retail Investors, Europe Phone: +49 6227 7-70157

John Duncan

Institutional Investors and Analysts Phone: +1 212 653 1413

James Dymond Socially Responsible Investing (SRI) Phone: +49 6227 7-61823

Scott Smith Institutional Investors and Analysts Phone: +1 650 461 2905

Astrid Stroemer Institutional Investors and Analysts Phone: +49 6227 7-52167

SAP SE Investor Relations Dietmar-Hopp-Allee 16 69190 Walldorf Germany

Investor Hotline: +49 6227 7-67336 Telefax: +49 6227 7-40805 E-Mail: investor@sap.com Internet: www.sap.com/investor Twitter: @SAPinvestor

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.

Run Simple

The Best-Run Businesses Run SAP® © 2015 SAP SE Investor Relations. All rights reserved.