SAP SE — Investor Presentation 2017

Sep 19, 2017

SAP – Leading the Digital Transformation

Luka Mucic, CFO

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.

An introduction to SAP

Helping customers win in the new digital economy SAP's long-term financial ambition Why invest in SAP

The world's leading business software company

An introduction to SAP Helping customers win in the new digital economy SAP's long-term financial ambition Why invest in SAP

In the age of digital disruption, companies need to transform to thrive

SAP Cloud Platform is THE Digital Business Platform

SAP Digital Boardroom provides integrated real-time data One source of truth

Total Transparency

Across entire business operations and all SAP apps from Digital core to LoB apps

Instant Data-Driven Insights

Ability to drive ad hoc analyses and simulation in real-time leveraging SAP BusinessObjects Cloud

Rapid Time to Value

Leveraging predefined best practices and prebuilt integrations for fast deployment

SAP Leonardo enables companies to re-imagine new business models

Turns systems of record into systems of intelligence -- gives customers the ability to sense, analyze, and respond

Solution Ideation & Vision

Global Leonardo Design Thinking and Innovation to ideate on new business models

Rapid Prototyping

Bring ideas to life, leveraging SAP Innovations (e.g. Machine Learning, IoT) on the SAP Cloud Platform

Digital Blueprint

Create a Technology Roadmap, Identify Dependencies & Remediate Risks

Solution Accelerators

Leverage industry expertise and SAP Business Content to accelerate implementation of prototypes

An introduction to SAP Helping customers win in the new digital economy SAP's long-term financial ambition Why invest in SAP

Pushing towards a larger more predictable business

Continued strong momentum reflected in raised 2017 outlook and 2020 ambition

Cloud subscriptions	€2.99bn	€3.8 - €4.0bn	€8.0 - €8.5bn
Cloud & software	€18.43bn	+6.5% to +8.5%
Total revenue	€22.07bn	€23.3bn - €23.7bn	€28bn - €29bn
Share of more predictable revenue	61%		70% to 75%
Operating profit	€6.63bn	€6.8 - €7.0bn	€8.5 - €9bn
Employee Engagement	85%	84% - 86%	84% - 86%
Women in management	24.5%	25%
Greenhouse gas	380kt		336kt

Driving increased profitability

Highly profitable cloud business in the long term

• Mix shift effects
• Cloud investments
• Services margin dampened by strategic coinnovation

2017

• Mix shift effects
• Cloud investments
• Services margin improving

2016 2018 – 2020

• Cloud investments paying off. Highly standardized "converged platform" drives:
• Gross margin improvement
• R&D leverage (away from "any DB")
• Cloud overtakes software
• Efficiency in each business improving and cost ratios start to improve
• Cloud at scale contributes to profit acceleration through increased share of renewal base

An introduction to SAP Helping customers win in the new digital economy SAP's long-term financial ambition Why invest in SAP

Summary Why invest in SAP

SAP's innovation leadership is helping customers win in the digital economy

• SAP runs the world's mission-critical business processes and is perfectly positioned at the top of the IT stack – close to the end user where the business value is generated
• In addition, SAP has developed the most advanced in-memory platform available today: SAP HANA
• SAP is in the early stages of a powerful multi-year innovation cycle with SAP S/4HANA as the digital core coupled with the most comprehensive, best-in-class cloud & network portfolio
• SAP offers choice of deployment model (cloud, on premise or hybrid) and seamless integration
• SAP Leonardo's combination of tools powered by HANA helps customers to become intelligent enterprises

SAP is outpacing the market

• SAP's broad global footprint provides resilience in an uncertain world
• Powerful combination of a rapidly expanding cloud business and a growing core
• Successful business transformation improve efficiency and effectiveness in each and every business
• Growing overall operating profit even as we continue to hire in fast growth areas such as S/4HANA, HCM, CEC, SAP Cloud Platform (PaaS), Networks, SAP Leonardo (IoT, AI/Machine Learning, Blockchain, Big Data etc)

SAP is pushing relentlessly towards a much more predictable business in the long term