An Commerzbank AUG 2009

8/8/2019 An Commerzbank AUG 2009

1/21

Andreas NauninHead of SME, SAP Germ any andMem ber of t he Managem ent Board, SAP Germ any

Commerzbank9t h Germ an Tec hno logy &Telec om s Conferenc e

Frank fur t , August 25, 2009


2/21

SAP

K ey FiguresSecond

Quar ter 2009

SAP Investor Relations / Page 2

Operating Margin (%)U.S. GAAP Non-GAAP

Q209Q208 Q209 Q208

+4.4pp

+3.3pp

(+3.5pp*)

27.71)

27.71)

20.7

20.7 24.4

24.425.11)

25.11)

Basic EPS from U.S. GAAP

Q208 Q209

+6%

0.34

0.34

0.36

0.36

SW & SW-Related Serv. Revenue ( bn)U.S. GAAP Non-GAAP

Q209Q208 Q209 Q208

-8%

(-10%*)

Software RevU.S. GAAP

Q208 Q209

-40%

-5%

1.95

1.95 2.11

2.112.06

2.06 1.95

1.95

* at constant currencies

1) includes negative effect of 0.2pp from Q2 2009 restructuring charges of 5 million

898

898

543

543


3/21

Who is SAP?

SAPThe Worlds

LeadingProviderof Business

App l ica t ionSof tware

The w or ld s lead

bus iness appl i ca ~89,000 custom

Broad global rea

balance and a g

Undisputed mar Recognized glob

valuable brand o

St rongest produon an open t ec h

Leading product

with ~15,000 de

First to market w

enterprise SOA

Deepest industry

24 industry solut



4/21

SAPs Eco Syst em

Customer-Focused

Ec o Syst emAlwaysConnected,

A lw ays On


TechnologyPartners

So f twarePartners

ChannelPartners

ServicesPartners

BusinessProcess Expert

Communi ty

SAP DeveloperNe two rk

Trusted and Relevant Par t ner Solut ions and Serv ic es

Comm uni t ies

SA PNetWeaver Fund

C H A N N E L

P A R T N E R


5/21

What are k eycharac te r i s t i csof the business

model?

SAPsbus inessm odel s tead i lyincreas ing

s t reams o f recur r ing ,s t ab le andpro f i tab lerevenue

* Non

T ime

Sof twareSof tware

Consul t ingConsul t ing

Other Other

SupportSupport

Tra in ingTra in ing

Subscr ip t ionSubscr ip t ion

Tota l Revenue*

4.34.3 11.711.7

1998 2008

+11% CAGR

Software

andsoftware-

related

service

revenue

(SSRS)

Profess.

services

and

other

revenue

Operat ing Marg in*

20.9%20.9% 28.2%28.2%

1998 2008

+7.3pp

Net Incom e*

0.50.5 2.22.2

1998 2008

+16% CAGR

SAP Investor Relations 2009


6/21

Industry-Specific Apps

Which m arket doesSAP operate in andhow w i l l it g r ow ?

New

produc tsdr ive t heex pans ion o f

SAPsaddressablemarke t


Storage /

Security / IT

Management

Storage /

Security / IT

Management

OperatingSystem

OperatingSystem

DatabaseDatabase

MiddlewareMiddleware

ApplicationsApplications

Business

Intelligence

Business

Intelligence

User

Productivity /

Desktop

User

Productivity /

Desktop

The enterprise

software stack

* Addressable market, based on software and software

~$32bn

CRM, SCM, ERP, (LE & SME)

2005*


7/21

~30%**~75%*

LARGEENTERPRISES

10-1

small

enter-

prises

medium

enter-

prises

stable

SMAL L ANDENTERP

Product por t fo l io

SAPsSolut ionsOffer ings

By Cust om er Segment


* Market penetration in Germany

** Average share of wallet per customer in Germany

Source: Based on IDCs Mega model, SAP Germany


8/21

Market share

Constant lyIncreasedThe Num ber

o f Acc oun tsWi t h in t heFort une 500

Companies


86%

89%

56%

94%

83%

76%

52%

100%

81%

90%

96% 92%

83%100%

100%

Note: Public Services accounts are not considered in the Global 500 analysis, Source: FortuneMagazine, Global 500 2007; SAP internal analysis

Discrete Industries FinancialServices

Process Industries ConsumerProducts/

Life

Sciences

SerIndu

# companies

A&D

Auto

EC&O

High

Tech

IM&C

Banking

Ins.

Chem.

Mill

Oil&Gas

PM&M.

Cons.

Prod.

LifeSc.

Travel

Utilities

20

40

60

80


9/21

Whom does SAPc ompete agains t?H o w ?

SAP has

compe t i t i veadvantagesversus everyc a t egory o f compe t i t o r s


In-house developm ent &cus tom development

In-house developm ent &cus t om deve lopment

Best o f breed vendors

Best o f breed vendors

Cost

Long-term support and

continuous improvement

Best practices

Integration

One throat to choke

Stability and reliability of

vendor

Customer access

Global standards

Stand-

alone

utility

Development

effort

C

a

Ns

In

R

L

U

e

Sp


10/21

The c urren t s i t uat ion


11/21

How has the economicenv ironment impact edSAP?

2008A year w i t h tw o

faces

SSRS r

H1

+28%+28%

Sof t w are revenue*

+0%

+27%+27%

H1 H2

* year-on-year, Non-GAAP, constant currency; SSRS = Software- and software-related service

SAP started with a very strong H1 2008, with strong org

excellent contribution from SAP Business Objects

Following the acceleration of the financial crisis in mid-S

economic environment deteriorated significantly

SAP's H2 2008 was severely impacted with an H2 SSR

below the H1 level

Customer buying patterns changed

High share of order entry from existing customers in

Reduced average transaction volumes



12/21

How does SAP react tot h is envi ronment ? Whatare the expec ta t ions?

The ec onom icdown tu rn

show s t hes t reng t h of SAPs Bus ine ssModel Again

OECD Com posi t e Jan 1999

NAFTA OECD

Grow ing s t ream o f s t ab le ,rec urr ing revenues in H1 2009

Support revenue increased 20% yoySubscription revenue increased 20% yoy

+ Flex ib le c ost base

Cost containment measures in place

Workforce reduction well on track

= Earn ings prot ec t ion

Bu t :

Operating environment will remain

difficult, but SAP is beginning to have

better visibility into H2 2009

Closure rates still hard to predict

SAP will continue to very carefully manage

its cost base

Customers consider upgrades stronger

Smaller projects with concrete ROI are

preferred

SAP Investor Relations August 2009

Sourc


13/21

Out look


14/21

What are t he topthree t rends in theindust ry?

SAP is a

dr iver o f indust ryt rends


CONSOLIDATION

SAP has been the most active consolidator in an organic fash

M&A activity has increased in recent years and can be expecte

SERVICE-ORIENTED ARCHI TECTURES

Breaking down monolithic code into smaller, standardized, re-

blocks Enterprise Services

Over the last years, SAP has transformed its solution portfolio t

architecture

SAP Business Suite already contains more than 2,200 Enterpris

SOFTWARE ON-DEMAND / SOFTWARE AS A SERVICE (

Solution delivery: Companies do not run the application on premhosted application remotely, sharing elements of the stack with

Licensing: Customers rent the software license rather than bu

licenses

SAP expects a co-existence of both models and is in a unique

hybrid yet integrated landscapes going forward


15/21

Consol idat ion

Innovat ionis a cores t rengt h o f

SAPand SAP w i l lc ont i nue toinvest


SAP NetWeaverINTEGRATION

SAP NetWeaverCOMPOSITION

SRM PLSCMCRM

SAP Business

EcosystemS

olutions

CustomS

olutions

SAP BusinessObjectsANALYTICS

Close in tegrat ion acrossERP, CRM, SCM, SRM, PLM

New upgrade conceptwith enhancement packs

Service-based for crosscompany processes

Indust ry add-onsfor 24 industries

A common and integrated

ana ly t ics p la t fo rm

Business Object s Ex plorerbuilt on In-memory DB


16/21

Services

Innovat ionis a cores t rengt h o f

SAPand SAP w i l lc ont i nue toinvest


SUGEN K PI for SAPFour KPI categories have

on:

Total Cost of OperationBusiness Continuity

Business Process Impr

Protection of Investme

Standard SupportStandard Support


17/21

On-DemandOn-PremiseSof twareOn-Demand

SAP isc o m m i t t e dt o the on-

demandso f twa r espace

SAP Investor Relations 2009

Large Ent erpr ises

On-premise and on

co-exist in custome

On-demand solutioused as integrated

premise core

SAP has the ability

integrated solution competitive differen

SAP offers a growin

solutions for large e

Sm al l and Midsize

SAP Business ByD

demand solution fo

Perpetual license

or subscription

At customer site

Individual

software stack

Flexibility and

differentiation

Security

Subscription

Hosted by vendor

or 3rd party

Shared

software stack

Cost of ownership

Speed of

deployment

Keycharacteristics

Keyadvantages

Service-oriented architecture


18/21

Clear Enterpr is e

SAPs c learent erpr ise -m ore t han

jus t amarke t ingcampa ign



19/21

Clear Enterpr is e

A bes t -runbusinessrequ ires t o

be a c lear enterpr ise


Transparent and Acc ountab le

Cust om er-Cent r ic and Col laborat ive

Lean and Agi le

Eff ic ient Proc esses

CLEARENTERPRISE


20/21

SAPA sum m ary

Market leader in the businessapplications industry

Rare combination of defensivecharacteristics and significantgrowth potential

Using product innovation andtargeted acquisitions to leverage

competitive advantages Advantages against every category

of competitors

Strong focus on earningsprotection

SAP continuously invests ininnovations

SAP Investor Relations August 2009


21/21

Q& A

Documents

An Commerzbank AUG 2009