SAP SE — Investor Presentation 2015

Feb 3, 2015

Capital Markets Day

Feb 3, 2015 – The New York Stock Exchange

Welcome

Stefan Gruber, Head of Investor Relations

Agenda

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.

Bill McDermott, CEO

Strategy is ever consistent since 2010

Re-invented the core with SAP S/4 HANA

Simple | 4th generation of real-time built natively on SAP HANA

Fiori and Mobile First UX | Cloud or On Premise

Integrated enterprise in the Cloud

CONCUR VIDEO

Integrated enterprise in the Cloud

World's Business Network

Connecting companies, people and devices

SAP Business Network Powered by SAP HANA

Vision for the perfect enterprise

UNDERARMOUR VIDEO

Vision for the perfect enterprise

Driving Effectiveness & Efficiency of Our Business Models

Luka Mucic, CFO

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

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

Core business – steady improvement of profitability due to growing support, solid license revenue and efficiency gains

Total revenue mix

All other revenue

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

Software & Support

Example: existing customer with continued software purchases

Assumptions:

License purchases decline by 5% p.a.; Enterprise Support offering fee 22% p.a.

Software license revenue

• Driven by innovations next generation Business Suite S/4HANA, CEC* 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

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 18 * Customer Engagement & Commerce

Both businesses will contribute to operating profit expansion

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

As share of new bookings reduces over time, cloud profitability ramps

Share of new vs. anniversary and renewal bookings

Typical Cloud deal impact on gross profit* (three years contract duration)

* excl. G&A and R&D

Levers for increased effectiveness & efficiency across the different business models

1 Top line S/4 HANA CEC Strategic Industries 2 Run Simple

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 22

4

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

Innovation Product Strategy

Bernd Leukert, Member of the Executive Board

Capital Markets Day

Feb 3, 2015 – The New York Stock Exchange

PLATFORM SAP HANA Cloud Platform

APPLICATIONS SAP's Next Big Thing

APPLICATIONS SAP S/4HANA

~1/1 0 o f d a t a f o o t p r i n t | 3-7X h i g h e r t h r o u g h p u t | U p t o 1 .8 0 0X f a s t e r a n a l y t i c s R e p l i c a t i o n for t h r o u g h p u t a n d h i g h - a v a i l a b i l i t y | P r e d i c t , r e c o m m e n d , s i m u l a t e All data: social, text, geo, graph, processing | any device | Easy upgrade | Extensions through HCP BENEFITS

NETWORK Reaching beyond the company frontier

Rob Enslin, Executive Board Member

Hans Engel, CFO of BASF SE

Alan Matula, CIO, Royal Dutch Shell

The Business Network

Steve Singh, Member, SAP Global Managing Board

How the world should work

Networks for consumers

The Business Network

The SAP Business Network

Opportunity for business network technology disruption

Delivering value today

Capital Markets Day

Feb 3, 2015 – The New York Stock Exchange

Capital Markets Day

Feb 3, 2015 – The New York Stock Exchange