SAP Q2 2011 Presentation E

Second Quarter 2011 Results Release
Walldorf, Germany Wednesday, July 27, 2011
Safe Harbor Statement
Any statements contained in this document that are not historical facts are forwardlooking 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 SAPs future financial results are discussed more fully in SAPs filings with the U.S. Securities and Exchange Commission (SEC), including SAPs 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.
2011 SAP AG. All rights reserved.
Agenda
Income Statement Balance Sheet and Cash Flow Analysis Outlook Appendix
6th Consecutive Quarter of Double-Digit Non-IFRS SSRS Revenue Growth

Software Revenue ( bn) IFRS 26% Non-IFRS 26% (35%*)
0.64 0.80 2.26 2.58
SW & SW-Related Service Revenue ( bn) IFRS 14%

2.59
Non-IFRS 15% (20%*)

2.26
0.64
0.80
Q2/10 Q2/11
Q2/10 Q2/11
Q2/10 Q2/11
Q2/10 Q2/11
Operating Margin (%) IFRS -0.7pp

29.5 30.8
Basic Earnings Per Share () Non-IFRS 1.3pp (1.5pp*)

0.41 0.49
IFRS 20%
Non-IFRS 26%
0.47 0.59
26.7
26.0
Q2/10 Q2/11
* at constant currencies
Q2/10 Q2/11
Q2/10 Q2/11
Q2/10 Q2/11
Strong Top-Line Performance in First Half 2011 Shows That SAP is on Track to Achieve Fiscal Year Targets
Software Revenue ( bn) IFRS 26% Non-IFRS 26% (31%*)
1.10 1.39 4.21 4.91
SW & SW-Related Service Revenue ( bn) IFRS 17%

4.93
Non-IFRS 17% (19%*)

4.21
1.10
1.39
H1/10 H1/11
H1/10 H1/11
H1/10 H1/11
H1/10 H1/11
Operating Margin (%) IFRS -1.6pp

27.2 28.3
Basic Earnings Per Share () Non-IFRS 1.1pp (1.2pp*)

0.74 0.83
IFRS 12%
Non-IFRS 24%
0.84 1.04
24.6
23.0
H1/10 H1/11
H1/10 H1/11
H1/10 H1/11
H1/10 H1/11
Successful Quarter with Double-Digit Top-Line Growth and Strong Non-IFRS Margin Expansion
IFRS
millions, unless otherwise stated Software revenue Support revenue Subscription & other SW-rel. serv. rev. SSRS revenue Consulting revenue Other service revenue Professional services & other serv. rev. Total revenue Total operating expenses Operating profit Finance income, net Profit before tax Income tax expense Profit after tax Basic earnings per share, in
Non-IFRS
Q2/10
637 1,526 95 2,258 528 108 636 2,894 -2,120 774 -12 676 -185 491 0.41
Q2/11
802 1,681 96 2,579 579 142 721 3,300 -2,443 857 -18 804 -216 588 0.49
%
26 10 1 14 10 31 13 14 15 11 50 19 17 20 20
Q2/11
802 1,689 96 2,587 579 142 721 3,308 -2,289 1,019 -18 966 -263 703 0.59
Q2/10
637 1,526 95 2,258 528 108 636 2,894 -2,040 854 -12 767 -205 562 0.47
%
26 11 1 15 10 31 13 14 12 19 50 26 28 25 26
%
at cc
35 15 3 20 15 37 19 20 17 26
Top-Line Growth in First Half 2011 Combined with Operational Excellence Results in Strong Profitability
IFRS
millions, unless otherwise stated Software revenue Support revenue Subscription & other SW-rel. serv. rev. SSRS revenue Consulting revenue Other service revenue Professional services & other serv. rev. Total revenue Total operating expenses Operating profit Finance income, net Profit before tax Income tax expense Profit after tax Basic earnings per share, in
Non-IFRS
H1/10
1,101 2,920 184 4,205 1,007 191 1,198 5,403 -4,072 1,331 -12 1,197 -319 878 0.74
H1/11
1,385 3,336 185 4,906 1,148 270 1,418 6,324 -4,870 1,454 -32 1,388 -397 991 0.83
%
26 14 1 17 14 41 18 17 20 9 >100 16 24 13 12
H1/11
1,385 3,361 185 4,931 1,148 270 1,418 6,349 -4,551 1,798 -32 1,732 -501 1,231 1.04
H1/10
1,101 2,920 184 4,205 1,007 191 1,198 5,403 -3,933 1,470 -12 1,354 -354 1,000 0.84
%
26 15 1 17 14 41 18 18 16 22 >100 28 42 23 24
%
at cc
31 16 0 19 15 42 20 19 17 24
SSRS Revenue Breakdown by Region** Second Quarter 2011

millions | yoy percent change
IFRS
EMEA 1,249 | +16%
thereof Germany 397| +10% thereof rest of EMEA 852| +19%
Non-IFRS
EMEA 1,251 | +16% | +16%*
thereof Germany 397 | +10% | +10%* thereof rest of EMEA 854 | +19% | +19%*
Americas Total 2,579 | +14% 904| +10%

thereof United States: 675 | +10% thereof rest of Americas 230 | +11%
Americas Total
2,587 | +15% | +20%*
909 | +11% | +24%*

thereof United States: 679 | +10% | +26%* thereof rest of Americas 231 | +12% | +17*
Asia Pacific Japan 426| +19%

thereof Japan 137 | +23% thereof rest of APJ 289 | +17%
* At constant currencies ** Based on customer location
Asia Pacific Japan 427 | +19% | +23%*

thereof Japan 137 | +23% | +25%* thereof rest of APJ 289 | +17% | +21%*
SSRS Revenue Breakdown by Region** First Half 2011

millions | yoy percent change
IFRS
EMEA 2,375 | +14%
thereof Germany 728 | +8% thereof rest of EMEA 1,647 | +17%
Non-IFRS
EMEA 2,382| +15% | +14%*
thereof Germany 728 |+ 8% | +8%* thereof rest of EMEA 1,654 | +17% | +16%*
Americas Total 4,906 | +17% 1,746 | +18%

thereof United States: 1,295 | +19% thereof rest of Americas 451 | +13%
Americas Total
4,931 | +17% | +19%*
1,762 | +19% | +25%*

thereof United States: 1,309 | +20% | +29%* thereof rest of Americas 453 | +14% | +14%*
Asia Pacific Japan 785 | +22%

thereof Japan 261 | +25% thereof rest of APJ 525 | +22%
* At constant currencies ** Based on customer location
Asia Pacific Japan 787 | +23% | +21%*

thereof Japan 262 | +26% | +21%* thereof rest of APJ 526 | +22% | +21%*
Non-IFRS Operating Margin Expanded 130 Basis Points in the Second Quarter 2011 Despite Currency Headwind
29.5%
30.8% | 31.0%* +1.3pp | +1.5pp*

Total Revenue
3.3bn
Total Revenue
Strong top-line growth paired with continued focus on operational excellence resulted in further margin expansion.
Total Operating Expenses
2.9bn
2.3bn
2.0bn
In Q2 2011, non-IFRS operating margin increased 1.3 percentage points to 30.8% yoy, which exceeded expectations. Currency affected operating margin negatively by 0.2 pp.
Q2/10
Q2/11
10
Non-IFRS Operating Margin Expanded 110 Basis Points in the First Half 2011
27.2%
28.3% | 28.4%* +1.1pp | +1.2pp*

Total Revenue
6.3bn
Total Revenue
Strong top-line growth paired with continued focus on operational excellence resulted in further margin expansion.
5.4bn
4.6bn
In H1 2011, non-IFRS operating margin increased 1.1 percentage points to 28.3% yoy. Currency affected operating margin negatively by 0.1 pp.
3.9bn
H1/10
H1/11
11
Gross Margin Increased by 70 Basis Points

Non-IFRS, Second Quarter 2011
Gross Margin 70.6% | +0.7pp

Total Revenue
SSRS Margin 83.5% | +0.1pp
Professional Services* Margin 24.1% | +1.9pp
3.3bn
Total Revenue SSRS Revenue
2.9bn
SSRS Revenue
2.6bn
2.3bn
SSRS + Services* Expenses
1.0bn
SSRS Expenses SSRS Expenses
0.9bn
Services* Services* Revenue Services* Revenue Services* Expenses Expenses 0.7bn
0.4bn
0.4bn
0.6bn 0.5bn
0.5bn
Q2/10
Q2/11
Q2/10
Q2/11
Q2/10
Q2/11
* Professional services and other services

2011 SAP AG. All rights reserved. 12
Gross Margin Expansion Supported by All Line Items

Non-IFRS, First Half 2011
Gross Margin 69.2% | +0.3pp

Total Revenue
SSRS Margin 82.9% | +0.3pp
Professional Services* Margin 21.7% | +0.6pp
6.3bn
Total Revenue SSRS Revenue
5.4bn
SSRS Revenue
4.9bn
4.2bn
2.0bn
SSRS Expenses SSRS Expenses
1.7bn
Services* Services* Revenue Services* Revenue Services* Expenses Expenses 1.4bn
0.7bn
0.8bn
1.2bn 0.9bn
1.1bn
H1/10
H1/11
H1/10
H1/11
H1/10
H1/11
* Professional services and other services

Cost Ratios
Non-IFRS, Second Quarter 2011
R&D as a % of Total Revenue 13.4% 13.6% +0.2pp

Total Revenue Total Revenue
S&M as a % of Total Revenue 22.1% 21.3% -0.8pp

G&A as a % of Total Revenue 5.0% 5.0% +/-0.0pp

3.3bn
3.3bn
3.3bn
2.9bn
2.9bn
2.9bn
R&D Expenses
R&D Expenses
S&M Expenses
S&M Expenses
0.4bn
0.5bn
0.6bn
0.7bn
G&A Expenses
G&A Expenses
0.1bn
0.2bn
Q2/10
Q2/11
Q2/10
Q2/11
Q2/10
Q2/11
14
Cost Ratios
Non-IFRS, First Half 2011
R&D as a % of Total Revenue 14.4% 14.6% +0.2pp

S&M as a % of Total Revenue 21.9% 21.2% -0.7pp

G&A as a % of Total Revenue 5.4% 5.2% -0.2pp

6.3bn
6.3bn
6.3bn
5.4bn
5.4bn
5.4bn
R&D Expenses
R&D Expenses
S&M Expenses
S&M Expenses
0.8bn
0.9bn
1.2bn
1.3bn
G&A Expenses
G&A Expenses
0.3bn
0.3bn
H1/10
H1/11
H1/10
H1/11
H1/10
H1/11
15
Agenda
16
Balance Sheet June 30, 2011, IFRS

Assets
millions Cash, cash equivalents and other financial assets Trade and other receivables Other non-financial assets and tax assets Total current assets Goodwill Intangible assets Property, plant, and equipment Other non-current assets Total non-current assets Total assets 06/30/11 4,563 2,738 379 7,680 8,213 2,107 1,463 1,433 13,216 20,896 12/31/10 3,676 3,099 368 Other liabilities 7,143 8,428 2,376 1,449 1,443 Total liabilities 13,696 20,839 Total equity Equity and liabilities 10,899 9,997 20,896 11,015 9,824 20,839 Current liabilities Financial liabilities Provisions Other non-current liabilities Non current liabilities 2,004 5,588 3,945 244 1,122 5,311 2,813 5,153 4,449 292 1,121 5,862
Equity and liabilities

millions Financial liabilities Deferred income Provisions
06/30/11 136 2,161 1,287
12/31/10 142 911 1,287
17
Highest Operating Cash Flow for a First Half Year in SAPs History
millions, unless otherwise stated
06/30/11 2,270 -248 2,022 32% 2.29 63
06/30/10 1,282 -125 1,157 21% 1.46 73 77% 98% 75% 11pp 57% -10days
Operating cash flow - Capital expenditure Free cash flow Free cash flow as a percentage of total revenue Cash conversion rate Days sales outstanding (DSO)
1) cash and cash equivalents + current investments (bank loans, private placement transactions, and bonds)
1) Defined as cash and cash equivalents + short-term investments less bank loans, private placements and bonds 2) Defined as cash and cash equivalents + short-term investments
18
Net Group Liquidity Increased by 1.4bn Driven by Strong Revenues and Good Working Capital Management
millions
Operating cash flow
Capital Net expenditure repayments -248 of borrowings
+2,270
Total Group Liquidity1) 12/31/10
-486
Dividend
Other +44
Total Group Liquidity1) 06/30/11
Financial Debt
-713
4,395
-3,864
3,528
Total Net Liquidity2) Total Net 06/30/11 Liquidity2) 12/31/10 531
-850
1) Cash and cash equivalents + current investments 2) Total Group Liquidity minus bank loans, private placement transactions, and bonds
* Defined as cash and cash equivalents + restricted cash + short-term investments
19
Successful Second US Private Placement Well-balanced financial debt maturity profile

EUR million (in % of total financial debt) 1,250
1,000 1.023 750 26% 500 600 250 16% 100 3% 0 20% 774 208 11% 5% 415
% Fixed interest rate % Variable interest rate
638 17%
104
3%
2012
2013
2014
2015
2016
2017
2018
On June 1, 2011, we successfully completed a private placement with a volume of US$750 million This enhances Group's financial flexibility by broadening its investor base and extending its maturity profile Proceeds of issue were used to repay existing Group financial debt incurred to finance Sybase acquisition A group of 16 institutional investors participated in the two tranches
US$600 million tranche with a five-year term US$150 million tranche with a seven-year term. coupon was less than 3.5% on both tranches
* Defined as cash and cash equivalents + restricted cash + short-term investments
20
Agenda
21
SAP Refines Outlook for Non-IFRS SSRS Revenue at CC and Non-IFRS Operating Profit at CC
SAPs Outlook FY 2011 SSRS Revenue (Non-IFRS at cc) Operating Profit (Non-IFRS at cc) + 10% to 14%
Company now expects to reach the high end of the range. Company now expects to reach the high end of the range.
Basis for comparison FY 2010 9.87bn
4.45bn to 4.65bn
4.01bn
Operating Margin (Non-IFRS at cc) Effective Tax Rate (IFRS) Effective Tax Rate (Non-IFRS)
+0.5pp to +1.0pp 27.0% to 28.0% 27.5% to 28.5%
32.0% 22.5%* 27.3%
* Impacted by 4.7pp due to increased provisions for TomorrowNow Litigation

Agenda
23
Non-IFRS Definition
IFRS Profit Measure
Actual Amounts from 2010 983m 74m 300m
Actual Amounts H1 2011 12m 25m 222m
Estimated amounts for 2011 < 20m 20m to 30m 430m to 460m
+/+ + = + + =
Discontinued activities Deferred maintenance write-down Acquisition related charges Previous Non-IFRS profit measure Share-based compensation expenses Restructuring charges New Non-IFRS profit measure
58m 3m
84m 1m
140m to 160m < 10m
24
Explanations of Non-IFRS Measures
Adjustments in the revenue line items are for support revenue that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges, sharebased compensation expenses, restructuring expenses and discontinued activities. Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year's respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year's non-IFRS constant currency numbers with the non-IFRS number of the previous year's respective period. For a more detailed description of these adjustments and their limitations as well as our constant currency and free cash flow figures see Explanations of Non-IFRS Measures online (www.sap.com/corporate-en/investors/reports and web message non-IFRS an web message currency effects).
25
Explanations of Currency Impact
Overview on the major currencies for Q2 2010
Currency USD per GBP per JPY per CHF per CAD per AUD per
2010 Q2* 1.27 0.85 117.38 1.41 1.31 1.44
SAPs guidance format SAP provides a yearly outlook, which is based on non-IFRS at constant currencies because these numbers are used as a basis for SAPs internal management reporting since we cannot influence currency movements, and it helps prevent frequent changes in guidance due to fluctuations in currency The elimination of currency effects is achieved by translating foreign currencies using the average exchange rates from the previous years period (i.e. quarter) instead of the current year Currency impact on past performance Historically, every 1% impact on total revenue resulting from foreign currency movements has resulted in a 10-15 basis point movement in margin.
* These exchange rates are rates SAP used in its financial statements ** Currency impacts on past performance are not a prediction of future performance resulting from currency impacts. For a more detailed description of these adjustments and their limitations as well as our constant currency and free cash flow figures see Explanation of non-IFRS Measures which is available at http://www.sap.com/investor
1) Defined as cash and cash equivalents + short-term investments less bank loans, private placements and bonds 2) Defined as cash and cash equivalents + short-term investments
26

SAP Q2 2011 Presentation E

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Second Quarter 2011 Results Release

Walldorf, Germany Wednesday, July 27, 2011

Safe Harbor Statement

2011 SAP AG. All rights reserved.

2011 SAP AG. All rights reserved.

6th Consecutive Quarter of Double-Digit Non-IFRS SSRS Revenue Growth

SW & SW-Related Service Revenue ( bn) IFRS 14%

Non-IFRS 15% (20%*)

Operating Margin (%) IFRS -0.7pp

Basic Earnings Per Share () Non-IFRS 1.3pp (1.5pp*)

SW & SW-Related Service Revenue ( bn) IFRS 17%

Non-IFRS 17% (19%*)

Operating Margin (%) IFRS -1.6pp

Basic Earnings Per Share () Non-IFRS 1.1pp (1.2pp*)

SSRS Revenue Breakdown by Region** Second Quarter 2011

Americas Total 2,579 | +14% 904| +10%

909 | +11% | +24%*

Asia Pacific Japan 426| +19%

Asia Pacific Japan 427 | +19% | +23%*

SSRS Revenue Breakdown by Region** First Half 2011

Americas Total 4,906 | +17% 1,746 | +18%

1,762 | +19% | +25%*

Asia Pacific Japan 785 | +22%

Asia Pacific Japan 787 | +23% | +21%*

30.8% | 31.0%* +1.3pp | +1.5pp*

2011 SAP AG. All rights reserved.

28.3% | 28.4%* +1.1pp | +1.2pp*

2011 SAP AG. All rights reserved.

Gross Margin Increased by 70 Basis Points

Gross Margin 70.6% | +0.7pp

SSRS Margin 83.5% | +0.1pp

Professional Services* Margin 24.1% | +1.9pp

SSRS + Services* Expenses

Services* Services* Revenue Services* Revenue Services* Expenses Expenses 0.7bn

* Professional services and other services

Gross Margin Expansion Supported by All Line Items

Gross Margin 69.2% | +0.3pp

SSRS Margin 82.9% | +0.3pp

Professional Services* Margin 21.7% | +0.6pp

SSRS + Services* Expenses

Services* Services* Revenue Services* Revenue Services* Expenses Expenses 1.4bn

* Professional services and other services

R&D as a % of Total Revenue 13.4% 13.6% +0.2pp

S&M as a % of Total Revenue 22.1% 21.3% -0.8pp

G&A as a % of Total Revenue 5.0% 5.0% +/-0.0pp

2011 SAP AG. All rights reserved.

R&D as a % of Total Revenue 14.4% 14.6% +0.2pp

S&M as a % of Total Revenue 21.9% 21.2% -0.7pp

G&A as a % of Total Revenue 5.4% 5.2% -0.2pp

2011 SAP AG. All rights reserved.

2011 SAP AG. All rights reserved.

Balance Sheet June 30, 2011, IFRS

Equity and liabilities

06/30/11 136 2,161 1,287

12/31/10 142 911 1,287

2011 SAP AG. All rights reserved.

millions, unless otherwise stated

06/30/11 2,270 -248 2,022 32% 2.29 63

Operating cash flow

Capital Net expenditure repayments -248 of borrowings

Total Group Liquidity1) 06/30/11

Total Net Liquidity2) Total Net 06/30/11 Liquidity2) 12/31/10 531

* Defined as cash and cash equivalents + restricted cash + short-term investments