Corporate Presentation

Q2 2011

Safe Harbor Statement“Safe harbor” statement under the Private Securities Litigation Reform Act of 1995:

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and

Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are SuccessFactors’ current expectations

and beliefs.

These forward-looking statements include statements about anticipated revenue and deferred revenue and expected revenue for

the fourth fiscal quarter of 2010 and the full fiscal year 2010. Factors that could cause actual results to differ materially with

respect to our anticipated results for the fourth quarter include the fact that our fourth quarter financial statement review process is

ongoing, and accordingly, actual results are preliminary and are subject to further review as part of our quarterly financial

statement review process, and accordingly, we cannot assure you that the final amounts will not change materially as a result of

our quarterly review process. Factors that could cause actual results to differ materially from those contemplated by the other

forward-looking statements include: our ability to continue to experience high customer renewal rates; whether customers renew

their agreements for additional modules or users; levels of new customers; pricing pressures; the uncertain impact of the overall

global economic slowdown, including on our customers, prospective customers and partners, renewal rates and length of sales

cycles; the fact that our market is at an early stage of development, and it may not develop as rapidly as we anticipate; competitive

factors; outages or security breaches; our ability to develop, and market acceptance of, new services; our ability to continue to sell

our services outside the HR area; our ability to manage our growth; our ability to successfully expand our sales force and its

effectiveness; whether our resellers and other partners will be successful in marketing our products; our ability to continue to

manage expenses; the impact of unforeseen expenses; and general economic conditions worldwide. If any such risks or

uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed

or implied by the forward-looking statements we make.

Further information on these and other factors that could affect our financial results is included in the section entitled “Risk

Factors” in our Annual Report on Form 10-K for 2010 and in our recent reports on Form 10-Qs and in other filings we make with

the Securities and Exchange Commission from time to time.

These documents are or will be available in the SEC Filings section of the Investor Relations section of our website at

www.successfactors.com/investor. SuccessFactors, Inc. assumes no obligation and does not intend to update these forward-

looking statements, except as required by law.

Investment Highlights

Leader in large ($36 billion), fragmented, under-penetrated, fast growing market

BizX suite gives us unique competitive advantage

We have a product that has the capability to touch every employee in a STRATEGIC way

Strong execution and action oriented culture, posting market leading growth rates and hitting key metrics

Highly profitable, sticky recurring revenue model

Large underpenetrated user base (Over 15 million users and growing)

Platform provider to world’s largest enterprises (more than a suite)

3

Users

Customers

Countries

Industries

Languages

Largest Deployment

At IPO

2.0M+

1,400+

156+

60+

18

85K

Today

15M+

3,500+

185+

60+

34+

2M+

June 2008

3.7M+

1,950+

180+

60+

22

300K

Accelerating Leadership

4

BusinessExecution

95% of employees don’t

understand their company’s strategy

What Are We Solving?

6

50% of the average employee’s time is

spent on non-productive work

84% of large

companies say they are not using their workforce to its full potential

Source – Norton/Kaplan, Bersin & Associates, 2008

BizX Impact Across the Board

2.8%

Performance

Change

AVG

HIGH

5.4%

13.8%

Increased

Project

Completion

AVG

HIGH

67%

5.5%

Increased Time

Spent on Strategic

Priorities

AVG

HIGH

40%

Faster

Communication of

Strategy Change

1wkAVG

HIGH

8wk

Bridge the gap between Strategy and Execution

Execute top and bottom line

Source: Independent consultant research findings, June 2009. Study sampled 527 customers . 7

SF ROX – Building Decisive,

Lasting Business Outperformance

SF ROX Comprises the North American Publically listed companies who when the investment was made had been using

more then three modules for more than three quarters, with more than 50% of employees using the solution. N = 37.

20%-point gap to NASDAQ, 40%-point gap to S&P500

StrategyBusiness

Results

Social Sourcing

Succession

Recruiting

Attract

and Retain

Learn and

Develop

Formal learning

Social learning

Compliance

Career planning

Calibration

Performance

Goals

Business Alignment

and Performance

Social Collaboration

SuccessFactors Cloud Platform

Analytics and Workforce Planning

What we do:

Close the Execution Gap

Compensation

Employee Central 2.0 - Next Generation HRIS

Recognized Industry Leadership

10

3,500+ Blue-Chip Customers

Around the World

11

EMEA APAC

Top Retailer Top

Financial

Services

Company

Major US

Automak

er

Americas

Addressable Market

Business Impact

# of Users

EPM

Business Execution

Software

BusinessAnalytics

WorkforcePlanning

HR/Back-Office

Systems

Accelerating Adoption within $36B

Market

13

Social Learning

Business Alignment

$20.0Billion Market

People Performance

$15.9 Billion Market

Potential Market Opportunity

14

Source – Company estimates based on Dunn & Bradstreet, US

Census Bureau , Bersin & Associates , Forrester Research and

internal analysis, June 2009

Business Alignment

$20.0Billion Market

People Performance

$15.9 Billion Market

Web 2.0 Analytics

Projects Collaboration

Bigger Market, Bigger Impact

Business Execution

$35.9Billion Market

Potential Market Opportunity

15

Source – Company estimates based on Dunn & Bradstreet, US Census Bureau , Bersin & Associates , Forrester Research and internal analysis, June 2009

In our time, we’ve seen a lot of change

The workforce has changed

- US Census Bureau Data

By 2013, 47% of employees will be those born after 1977

Technology has changed

Sales of cloud-based

applications are growing

five times faster than those

of traditional applications

Have Workforce systems changed?

Core HR

Recruiting

Talent

Learning

Customers want an integrated platform that allows them to use the fewest

possible vendors

Talent Management Systems Customer Satisfaction 2011

Redefining Core HR and Learning

Employee Central 2.0 SuccessFactors Learning

Core HR systems not made for

today’s world

Siloed from talentPrimitive and difficult

analytics

File cabinets for

record-keeping

On-premise HRIS = stagnant,

costly, unusable2000

PeopleSoft 8.02010

PeopleSoft 9.0

HRMS Upgrades Slowing While Replacement Increasing

Employee Central 2.0 -Next Generation Core HR

The user interface is phenomenal ….thanks for making my job as a front line

manager much easier!

Radically different – Built for BizX

Talent integration

Actionable analytics

Collaboration

Built for all employees

Comprehensive Core HR

True Cloud

From forms to consumer apps

Designed for non-experts

Designed for our 8M+ users and today’s workforce... without training

Analytics that provides insights and

drives critical decisions

We can prioritize our activities, study specific workforce segments, conduct

root cause analyses, and identify high-priority issues.

- Peter Church, VP Human Resources

Correlate workforce and business data –

Support for financial data from external systems;

all data in one place

30 years of expertise, rich content,

designed for everyone

Reporting in a box: Know what to measure with

2000+ metrics; pre-configured custom reports

Identify problem areas – Compare with rich

benchmarks and uncover gaps

28

But, only $1 billion is spend on traditional

learning management

systems

$125 billion is spent annually in the United

States on learning

$124 billion

Learning Market Dynamics

Social Learning On the Rise

• If you’re like most people, you learn:• 70% on the job

• 20% from bosses and mentors

• 10% through formaleducation and training

• But informal learning is rarely captured and shared beyond immediate associates

70% of learning is informalThe Teaching Firm: Where Productive Work and Learning Converge. 1998

Social Learning for the enterprise

This is the future of corporate learning and we're ahead of the curve with

SuccessFactors Social Learning

SuccessFactors Social Learning

Built For Business Execution

Community Learning

True Cloud

Joe Campbell, Director of talent development

Formal learning goes BizX

Customer

Federal Opportunity

Potential Spending on Cloud Computing by Agency

=

“This is a merger of true leaders.

SuccessFactors and Plateau are both

thought leaders, product leaders and

service leaders. A big part of

Plateau's ascension is the satisfaction

of the Plateau client base.

“SuccessFactors’ acquisition of

Plateau brings together the market

share leader in talent management

with one of the market leaders in

learning management to create a

global powerhouse in end-to-end

talent management software.”

“SuccessFactors just acquired another big

piece of the periodic table of elements. With

Plateau, they now have the opportunity to mix

things together that haven’t been mixed

together before. More companies than ever

desire a single, unified suite that they can tie to

their overall business strategy.”

Positive analyst feedback

Financial Review

All-Time High in Quarterly Non-

GAAP Revenue

35

48% y/y Revenue Growth ($MM)

$23.5$25.7

$29.7$33.0

$35.2$36.9 $38.7

$42.2 $44.7

$49.5$53.4

$61.7

$68.3$73.2

$0

$10

$20

$30

$40

$50

$60

$70

$80

Q1’08 Q2’08 Q3’08 Q4’08 Q1’09 Q2’09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11

72% Gross Margin

Delivered 42% Y/Y Billings Growth

$35 $37$42

$47

$33$39

$50

$63

$48$53

$66

$89

$63

$75

109%

68%

52%

2%-6%

7%

18%

34%

45%

35% 32%41%

31%

42%

1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

Billings YoY Growth

36

In US$M

Continue to Accelerate Bookings

Outside of Core Performance and Goal

37

As a % of New/Upsell Billings2003 Q2 2011

North America

100%

North America

74%

International

26%

NA Enterprise

95%

Mid-Market

5%

NA Enterprise

40%

SMB, Channels,

Int’l

60%

Performance &

Goal Mgmt

20%Other Modules

80%

Other Modules

7%Performance &

Goal Mgmt

93%

New Customers

91%

Upsell

9%

New Customers

39%Upsell

61%

Geographies

Markets

Products

Upsell

Source: Internal SFSF data

Continued

Strong Operating Cash Flows

($25.0)

($12.0)

($5.3)

$2.0

$7.9

$15.4

$25.8

$31.7

$37.7

$43.4

$38.4 $42.0

3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

Trailing 12-Month CFFO

38

In US$M

2011 Growth Drivers

New Customers• EMEA• North America• APAC

New Products • Learning• Employee Central• Social• Analytics• Recruiting• Calibration

Expand Distribution• Direct• Channels

39

40

IPOQ4’07

Follow-OnQ2’08

Last reportedQ2’11

LT Target Model

Revenue 100% 100% 100% 100%

Gross Margin 53% 65% 72% 86%

R&D 27% 23% 18% 15%

S&M 108% 87% 43% 38%

G&A 29% 24% 12% 8%

Operating Margin (109)% (70)% 3% 25%

FCF % of Revenue (function of billing margin)

10% 35%

Operating Model Progress

The Future of Business Software

41

“SuccessFactors' annual revenue is only about 1/100th of

SAP's, it has only about 700 employees, and it has only one

CEO. But SuccessFactors should be SAP's worst

nightmare.”

SuccessFactors Is

The Future Of

Business SoftwareBob Evans

Global CIO: InformationWeek

“

”

Corporate Presentation

Q2 2011