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Mannheim, Germany – May 21, 2014 Welcome to the 27 th Annual General Meeting of Shareholders

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Page 1: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

Mannheim, Germany – May 21, 2014

Welcome to the 27th Annual General Meeting of Shareholders

Page 2: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

Hasso Plattner Chairman of the Supervisory Board, SAP AG

Page 3: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

Co-CEO, SAP AG

Bill McDermott

Page 4: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

Our strategy accelerates the expansion of SAP’s addressable market

2010 2020

$110bn

$350bn

BI/Analytics

Middleware

ERP + Business Suite

Cloud

Database & Technology

Mobile

Analytics

Applications

Page 5: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

Four years of success

Growth rates non-IFRS as reported (in €bn)

Software & cloud subscription revenue

SSRS revenue Operating profit

14.0

8.2

2.9

5.5

+93%

2.7

5.3

+71% +88%

2009 2013 2009 2013 2009 2013

Page 6: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

We executed well on our strategy

2010 2020

$110bn

$350bn

BI/Analytics

Middleware

ERP + Business Suite

Cloud

Database & Technology

Mobile

Analytics

Applications

New user experience

3,200 SAP HANA customers

36m users

Continuous leadership in established and emerging markets

+1,200 SAP Business Suite powered by SAP HANA customers

Achievements

Page 7: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

Video Schaidt Innovations

Page 8: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

FY 2013: Performance vs. guidance*

SAP’s outlook FY 2013

Actual performance FY 2013

Software and software-related service revenue (non-IFRS at cc)**

at least +10%

€5.85bn to €5.95bn Operating profit (non-IFRS at cc) €5.90bn

+11%

around €750m Cloud subscription and support revenue (non-IFRS at cc)

€786m

* Excerpt, you can find full details in the Annual Report on page 92 et seq

** Revised forecast July 2013

Page 9: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

All growth rates on this slide are based on full year 2013, non-IFRS, at constant currencies, regional split by customer location

2013 regional performance Software & cloud subscription revenue

APJ

+4% EMEA

+8% Americas

+16%

Non-IFRS, at constant currencies, based on location of customer

Page 10: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

* pending approval of AGM special dividend

186 249

340

447

556 594 594 594

713

1,310

1,013

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

~1,200*

Development of total amount of distributed dividends Dividend for respective fiscal year (€ million)

2013

Page 11: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

SAP’s share price development

SAP

DAX 30

Dow Jones

01/2013 01/2014 07/2013

160

150

140

130

120

110

100

90

80

Page 12: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

Complexity

Consumer Apps Portal

CRM Search Site

Analytics

Big Data Data Center

Campaign Analytics

Data Warehouse BI Tools

Customized Applications M2M

Enterprise ERP Subsidiary ERP

Mobile

Cloud

Database & technology

Analytics

Mobile

Applications

Page 13: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

Delivering simplicity through the cloud

Power Software

Page 14: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

Shift to cloud subscription model What it looks like for a typical deal

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Cumulative revenue (in m€)

OnPremise Deal: SW+Maintenance

Cloud Deal: Subscription & Support

NPV based on revenue in m€ (8% WaCC)

Revenue break even

On-premise revenues

Cloud revenues

Year 1 Year 2 Year 3 Year 4 Year 5

Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Page 15: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

Note: non-IFRS at constant currencies

Combined total revenue ambition Non-recurring revenue in €bn Recurring revenue in €bn

Cloud revenue ambition Total Cloud revenue (€bn)

Impact of the shift to cloud on mid-term outlook Powerful mix – shift to high growth, high margin, predictable recurring revenue

2017 2013

1.0

3.0 – 3.5

35% CAGR

2013 2017

16.9

> 22

Page 16: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

SAP Cloud powered by SAP HANA simplifies everything

Innovation platform SAP HANA

New user experience Mobile

Applications Analytics SAP

Cloud

Page 17: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

Making the world run better and improving people’s lives.

Page 18: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

Video SAP and National Center of Tumor

Diseases

Page 19: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

Valuing people. Valuing diversity.

25% of management positions held by women by 2017

1% people with autism spectrum disorders employed by 2020 as percentage of global workforce

66,750 employees worldwide

120 nationalities worldwide

80 nationalities at headquarters

Page 20: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

Agenda topics (abbreviated)

2. Appropriation of retained earnings

3. Approval of acts of Executive Board

4. Approval of acts of Supervisory Board

5. Appointment of auditors for financial statements and group annual financial statements

6. Approval of two amendment agreements to existing control and profit and loss transfer agreements

7. Approval of control and profit and loss transfer agreement

8. Conversion with change of legal form to a European Company (SE) and elections to the first Supervisory Board of SAP SE

Page 21: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

We continue to focus on ambitious growth*

* Business outlook was provided on January 21, 2014, at the time of SAP’s fourth quarter and fiscal year 2013 results announcement. SAP reiterated this outlook on April 17, 2014, with the publication of SAP’s first quarter 2014 results announcement.

** Non-IFRS at cc. You can find details on our operational goals in the Annual Report on page 156 et seq

Cloud subscription & support revenue**

SSRS revenue**

Operating profit**

€950m – €1,000m

6% – 8%

€5.8m – €6m

2014

2017

at least €22bn

€3bn – €3.5bn

35%

Total revenue

Revenue from cloud business

Operating margin (non-IFRS)

Page 22: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

Video Oliver Bierhoff

Page 23: Mannheim, Germany May 21, 2014 - SAP€¦ · Mannheim, Germany – May 21, 2014 Welcome to the 27th Annual General Meeting of Shareholders . Hasso Plattner Chairman of the Supervisory

Mannheim, Germany – May 21, 2014

27th Annual General Meeting of Shareholders