SAP
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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: Data processing SAP R/1: Enabled customers to get a complete view of their business with real-time processing of data across integrated modules for materials, procurement, and accounting. SAP R/2: Helped customers successfully manage large global enterprises on a mainframe architecture, while retaining the integration and real-time processing capabilities of SAP R/1. SAP R/3 and SAP ECC: Enabled customers to take advantage of client-server and Internet technologies. Created a unified graphical user interface and new...

Today, a new digital economy powered by real-time data is emerging, and SAP is guiding its customers through unprecedented change. in global trade through connected businesses 44 trillion gigabytes of data generated 75 billion mobile devices connected devices in the Internet of Things social media 2.55 billion social media users © 2015 SAP SE or an SAP affiliate company. All rights reserved.

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. © 2015 SAP SE or an SAP affiliate company. All rights reserved. Business Network Collaboration Employee Engagement Digital core Big Data and Internet of...

The innovation adoption model for digital transformation Transformational level Business impact Business processes Business model • Business Innovation • New customers • New markets Improved PRODUCTS • Optimize products • Offer new products/services Improved PROCESSES • Improve single processes • Replace single processes • Change end to end processes Improved DECISIONS • Transparency • Decision support • Decision automation Technical SOLUTION Business outcome © 2015 SAP SE or an SAP affiliate company. All rights reserved.

SAP HANA architecture is revolutionary Speed and agility require a modern technology platform NEW APPS SAP HANA platform is: • Real-time, In Memory Applications (examples) • Open, Developer Friendly • Embeds Mobile and Analytics • Secure Open Programming Containers (e.g., Java, XS2) Integration (e.g., HANA Cloud Integration,) • Cloud Ready Security (e.g., SSO, Identify) Data Platform Libraries Big Data (e.g., HANA DB, ASE)(e.g., graph, predictive) (e.g. Hadoop, Spark) SAP HANA customers (unique) Infrastructure Delivery SAP Data Centers HANA success: Elastic Deployment Since 2010, SAP...

SAP S/4HANA value Digitize beyond the core, embrace the digital economy Digital Economy Digital Transformation Digital Core User Empowered Instant insight I Contextual information I Personalized experience Business networks Devices Process Enriched Scalability I Real time I Prediction I Simulation Live Data Granular I Responsive I Accurate Social networks People Leading-edge processes I Integrated system SAP S/4HANA value play © 2015 SAP SE or an SAP affiliate company. All rights reserved. Traditional core value play Digital transformation of business models Customer

Run simple with the digital business foundation of the 21st century Employee Engagement • Recruit and on-board the best workforce, simplify their work, and ensure regulatory and compliance Business Network Collaboration 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 Operate on a global basis, meet data security standards and operate at industry best standards Get instant business insight on one single source of live information on any device Leverage...

Digitization of core processes is critical to scale up Example: Digital commerce – fulfillment example Minimum viable product Personalized Coupons End-to-end digitized Plan Your Trip to the Store Personalized Coupons Auto-replenishment/ Subscription Auto-replenishment/ Subscription Personalized Communication Plan Your Trip to the Store Personalized Communication Easy Ordering from app In-Store Navigation Easy Ordering from app Curated Experience Digital store front Digital shopper experience • Mobile commerce • In store navigation • Easy ordering • Personalized coupons • Curated experience...

Shift to more subscription-based revenue

While offering end-to-end digital business solutions SAP is shifting to more subscription-based revenue, On-premise revenues Cloud Deal: Subscription & Support OnPremise Deal: SW+Maintenance NPV based on revenue in m€ (8% WaCC) Cloud revenues © 2015 SAP SE or an SAP affiliate company. All rights reserved. Revenue break even 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 Business Network The world’s largest network of its kind, with Ariba, Concur, and Fieldglass Mostly 3 years contracts Steady predictable revenue stream with a very high stickiness Massively scaling while continuing to improve efficiency Primarily ‘Pay-as-you-go’ model with contractual commitments Primarily annual pre-billing which results in deferred revenue Stable revenue growth rates © 2015 SAP SE or an...

A fast growing Cloud business changes SAP’s revenue mix, Total revenue mix 2020 ambition 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 subscription and support revenue All other revenue © 2015 SAP SE or an SAP affiliate company. All rights reserved.