SAP SE — Investor Presentation 2015

Mar 16, 2015

Financial Analyst and Investor Program

March 16, 2015 – CeBIT Trade Show, Hannover, Germany

Welcome

Astrid Strömer, Director Investor Relations

Agenda

$11:00$ am	Welcome Astrid Strömer, Director Investor Relations	Convention Center Room 108-110
$11:10 - 11:50$ pm	Innovation Strategy Bernd Leukert, Product & Innovation, Member of the Executive Board	Convention Center Room 108-110
$12:00 - 01:00$ pm	Internet of Things and Industry 4.0 Christoph Behrendt, Senior Vice President Industry & Application Innovation	Convention Center Room 108-110
$01:00 - 01:30$ pm	Lunch Break
$01:30 - 02:30$ pm	Business Network Steve Singh, Member of the SAP Global Managing Board	Convention Center Room 108-110
$02:30 - 03:30$ pm	Driving Effectiveness & Efficiency of Our Business Models $-Q & A$ Luka Mucic, CFO, Member of the Executive Board	Convention Center Room 108-110
04:15 pm	Guided Tour We will offer a guided tour to experience our exhibition and see a product demonstration by the experts. The tour will take a good hour.	SAP Stand, Hall 4
$06:30 - 10:00$ pm	SAP Influencer & Executive Reception A dinner reception for media and analysts will take place at the Funky Kitchen at the fair. Bus Transportation: Outward: 6:15 p.m. Meeting point: Right in front of hall 4 Please look out for our hostesses holding an SAP sign.	Funky Kitchen, Peppermint Pavillon, Boulevard der EU 8. 30539 Hannover

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 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.

Innovation Strategy

Bernd Leukert, Products & Innovation, Member of the Executive Board

PLATFORM SAP HANA Cloud Platform

APPLICATIONS SAP's Next Big Thing

APPLICATIONS SAP S/4HANA

Simplified Data Model Completely Fiori Guided Configuration

Cloud and On-Premise

BENEFITS	~1/10 of data footprint			3-7x higher throughput		Up to 1,800x faster analytics
	Predict, recommend, simulate			Replication for throughput and high-availability
	All data: social, text, geo, graph, processing		Any device	Easy upgrade	Extensions through HCP

The perfect integrated enterprise

APPLICATIONS S/4HANA Roadmap 2015

DISCLAIMER: This map represents SAP's current plan, but subject to change without any prior notification. Certain planning constraints such as regulatory and licensing issues are outside of our control and may impact the timelines

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 12 © 2015 SAP SE or an SAP affiliate company. All rights reserved. 12

NETWORK

Reaching Beyond the Company Frontier

Internet of Things and Industry 4.0

Christoph Behrendt, Senior Vice President Industry & Application Innovation

Harnessing the Internet of Things Connect | Transform | Re-Imagine

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 16

An era of unprecedented change fueled by hyper-connectivity

75 billion Connected devices by 2020

"The Internet of Things"

\$65 trillion Global business trade by 2020

Enabling the 4th Industrial Revolution

End of 18th century

Use of water and steam power to run mechanical production facilities

Beginning of 20th century

Use of electrical power to enable work-sharing mass production

Early 1970s

1 2 3 4

Use of electronics and IT to automate production

Use of cyber-physical systems to connect, transform and reimagine business

Today

Connect with billions of internet-enabled things to gain new insights

..by combining business data with intelligent analysis of new signals from devices, networks & more

Transform the way you make decisions and take action

..by executing operational processes through predictive and automated response all the way to the edge of the network

Re-Imagine your customer's experience

..by empowering innovative new business models, value-added services and customer responsive products

Internet of Things for Business – from Vision to live Solutions

Complete Service Process – New offerings to our customers and Eco System – Collaboration across boundaries – Differentiating offering

Predictive Maintenance and Augmented Reality – Live at CeBIT

Geographic screen to monitor Robots performance; Alert triggered for the Robot in Hannover.

The Millennials developed an algorithm that translate the vibration alert to a maintenance forecast.

Through Business Network, we can source an available, qualified technical to fix the Robot error.

Assign technician to fix the issue of the Robot.

Technician received an Message from the Pad

Repair the Robot through Work instruction guided by Smart Glass and Pad

© 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 25

IoT will touch almost every aspect of life & business

Predictive maintenance

Connected logistics

Connected buildings

Connected car

Connected family

Connected home Connected cities

Connected policing

Connected retail

SAP HANA Cloud Platform – the Internet of Things enabled in-memory platform-as-a-service

Connecting the Internet of Things with SAP solutions

SAP Predictive Maintenance and Service

SAP Connected Manufacturing

SAP Connected Retail

SAP Connected Driving

SAP Connected Logistics

Harley Davidson – enabling responsive manufacturing with SAP Connected Plant

Reduced lead time to produce customized motorbikes from 21-day cycle to 6 hours!

Building synchronized retail

Hamburg Port Authority – steering course for the connected port of the future

"Our aim is to gradually interconnect all modes of transport – from waterways and roads all the way to the railway"

CONNECTED Logistics in Supply Chain Execution

Comprehensive Automation / Device Communication – a foundation for the connected world

Connect | Transform | Re-Imagine

SAP Internet of Things for Business!

Business Network

Steve Singh, Member of the SAP Global Managing Board

Vision for the perfect enterprise

We think about the way the world should work

Networks for consumers

INSIGHT ACTIONABLE CONTEXT PERSONALIZED VISIBILITY TRANSPARENT

SAP BUSINESS NETWORK GROUP

Evolution from applications…

Integrated Travel & Expense Management

The Ariba Network connects people, systems and processes between companies to simplify business commerce

Fieldglass Vendor Management System

Customer Value

Easily acquire & manage services globally

Visibility: Gain 360 insight into all service providers and external workers.

Savings: Drive cost control across the enterprise by automatically enforcing contracts.

Compliance: Enforce laws & regulations related to contingent workers and 3rd party providers.

Efficiency: Enable business users to quickly find the right resource from a global pool.

Quality: Identify top vendors & workers by tracking performance

A large and expanding opportunity

Financial Analyst and Investor Program

March 16, 2015 – CeBIT Trade Show, Hannover, Germany

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 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.

Driving Effectiveness & Efficiency of Our Business Models

Luka Mucic, CFO, Member of the Executive Board

Strategy is ever consistent since 2010

Tripled addressable market from \$110B to over \$350bn

The perfect integrated enterprise

Vision for the perfect enterprise

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 56 © 2015 SAP SE or an SAP affiliate company. All rights reserved. 56

2015 outlook and path to 2020

Fast cloud growth, growing highly predictable revenue and operating profit

• 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
• In 2018 cloud subscriptions & support overtakes software license – SAP will reach a scale in its cloud business which clears the way for operating profit expansion
• Continued positive contribution to operating profit from software license and cloud business models

2020 ambition

€7.5 to €8bn Cloud subs

€26 to €28bn Total revenue

70% to 75% Support + Cloud subs – share of revenue

€8 to €9bn Operating profit

ONE Service and income statement amendment Impact on FY 2014 numbers, Non-IFRS

SAP will amend the structure of its income statement, starting with Q1 2015

	€-539 €-116
	€+539
	€+116

All amounts in € million. Due to rounding, numbers may not add up precisely.

Fast growing Cloud business changes revenue mix

Total revenue mix

Cloud subscription and support revenue

All other revenue

Fast growing Cloud business

Solid core business with resilient support revenue stream

Cloud subscriptions & support expected to overtake software licenses in 2018

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

Cloud and core business will contribute to operating profit expansion

Non-IFRS

SAP has a more diversified Cloud portfolio with different economics

Public Cloud

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

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

Business Networks

• Market leading with Ariba, Fieldglass and Concur
• Steady predictable revenue stream with a very high stickiness
• Primarily 'Pay-as-you-go' model with contractual commitments
• Stable revenue growth rates

Primarily annual pre-billing which results in deferred revenue

Pre-billing with short (monthly) billing terms, consequently lower deferred revenues

~80% long term gross margin

~40% long term gross margin Frequent, transaction-based billing leads to lower deferred revenue

~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. Internal 61

Levers for increased effectiveness & efficiency across the different business models

1 Top line S/4 HANA CEC Strategic Industries

3

(from solutions design through R&D to delivery) Run Simple

2

4

ONE Service one service portfolio, out of one global organization and under one contract

Financial Analyst and Investor Program

March 16, 2015 – CeBIT Trade Show, Hannover, Germany