©  2012 SAP AG. All rights reserved. 1

Managing & Evolving A Large Software Workforce A SAP Case Study

Dr. VISHAL SIKKA MEMBER OF THE EXECUTIVE BOARD | SAP AG

October 26, 2012

©  2012 SAP AG. All rights reserved. 2

SAP - A Global Leader in Providing Software Solutions to Businesses

World’s 4th Largest in Software #2 in Germany (Mkt Cap ahead of Siemens, BMW, D-Telekom)

200,000 Customers in 120 Countries 21% Large Enterprises, 79% SMEs

SAP Share of Forbes 2000 Companies by Sector

85% Consumer Products & Life Science 88% Discrete Manufacturing 77% Energy & Nature Resources 73% Financial Services 78% Process Manufacturing 73% Public Services 73% Financial Services 78% Services

14.2B EUR Revenue, 11.3 B EUR SSRS Revenue in 2011

84.7B USD Mkt Cap 60,900 Employees, €262K Revenue/FTE

©  2012 SAP AG. All rights reserved. 3

SAP is more than an application company today

Database & Hana

Mobile

Applications

Analytics

Cloud

Since 1972 2008 2010 2012

©  2012 SAP AG. All rights reserved. 4

SAP’s growth in revenue and margin

23%27% 28% 28% 29%

50% 45 40 35 30 25 20 15 10

8.5

04

14

12

10

8

6

4

2

0

+5%

+12%

12 1)

15.2

32%

11

14.3

33%

10

12.5

32%

09

10.7

27%

08

11.7

28%

07

5

27%

06

9.4

05 0

10.2

16

7.5

03

7.0

2002

7.4

1) Rolling four quarters from Q3 2011 – Q2 2012 Source: Company annual and quarterly reports

SAP Revenue and Operating Margin 2002-06 US GAAP, 2007-12 non-IFRS in M€ and %

Year

CAGR of Revenue SA

P R

evenue (B€)

SA

P O

perating Margin

©  2012 SAP AG. All rights reserved. 5

SAP’s growth in revenue and margin

1) Rolling four quarters from Q3 2011 – Q2 2012 Source: Company annual and quarterly reports

10

16

13

11

0

12

18

20

20152

20

17

20121

15

2011

14 15

14

19

2010

13

2009

11

2008

12

2007

10

1) Rolling four quarters from Q3 2011 – Q2 2012 Source: Company annual and quarterly reports 2) High-level guidance

Economic crisis

Growth driven by: - HANA - Mobile - Cloud - New Applications

Growth contributors by: - HANA - HANA-based applications - Mobile

Evolution of Revenue Growth

SA

P R

evenue (B€)

©  2012 SAP AG. All rights reserved. 6

SAP’s growth in revenue and margin Evolution of revenue, margin and share price

1) 2002-06 US GAAP, 2007-12 non-IFRS in M€ and % 2) Based on guidance for 2012 3) Price as of October 23rd, 2012 Source: SAP annual and quarterly reports, http://www.sap.com/corporate-en/investors/stock/stock.epx

0

20

40

60

123)

53 41

10

38 33

08

25 36

06

40 38

04

33 33

2002

19

SAP Share Price (XETRA in €)

SAP Revenue Growth (in %)

1014

1715

91013

71

-10

0

10

20

04 03

-5

02 05 09 12 06 07 08

-9

11 10

10

32

09

27

08

28

07

27

06

35

05

28

04

28

03

27

02

23

30

25 0

12

32

11

33 29

SAP Op. Margin (in %)

©  2012 SAP AG. All rights reserved. 7

SAP’s growth in revenue and margin Distribution of growth

0%

Applications

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

Tech. & Middleware

Analytics

Other DB

Cloud

Mobile2)

HANA

20121) 10 08 2006

Software Revenue Mix (in %)

Disproportionate Growth (End Q2 2012 in M€, %3))

Cloud 110, 934.4%

HANA 230, 770.2%

Mobile 160, 128.4%

Apps 2,200, 18.0%

Other DB 330, 5-10%

Tech. 500, 5-10%

Analytics 670, 5-10%

1) Rolling four quarters (R4Q) from Q3 2011 – Q2 2012 2) Without Sybase365 messaging 3) R4Q vs. 12 months before Source: SAP

©  2012 SAP AG. All rights reserved. 8

SAP’s growth in revenue and margin People distribution by key categories

Headcount Allocation (in %)

Revenue and People Growth Rates (since 2009 – in %)

1) 2012 Forecast 2) including HANA Source: SAP

2009

Cloud

10 2012 11

Applications

Analytics Mobile Tech. & Middleware Database

10%

0%

30%

20%

100%

90%

80%

70%

60%

50%

40%

11

2

17

78

226

4

-3

166

2

217

55

6,876

Revenue People

©  2012 SAP AG. All rights reserved. 9

TIP – Technology, Innovation & Platform

Applications TIP responsible for technology for all applications across SAP and new applications

Mobile TIP owns full product responsibility

Analytics

TIP owns full product responsibility

Cloud

TIP owns technology for all cloud apps across SAP

TIP owns Cloud Platform

Database & Tech. TIP owns full product responsibility

In 2012, TIP products are forecasted €2.2B software revenue that is ~50% of

total SAP total software revenue

SAP HANA – TIP’s full responsibility

TIP (Technology, Innovation, and Platforms) Overview

TIP also has the responsibilities across SAP:

Technology and Architecture for all SAP Products

Innovation

Design and User Experience

Research & Incubation

SAP Ventures

©  2012 SAP AG. All rights reserved. 10

TIP Overview

Challenges ■  Ensure the right level of investment across the portfolio/ put the money where the growth is and

shift priorities without increasing the overall costs ■  Ongoing renewal of skills, ■  Shift of resources/ teams from old technology (ABAP) to new technology Hana - people have to

accept the change and start from scratch again ■  Location strategy, we need to grow engineering expertise in emerging countries in the new

technology world. Be close to the customers ■  Manage an acquired portfolio across 5 market segments: Mobile, Database/Hana, Technology/

Middleware, Analytics and Applications, Cloud ■  Educating the sales force and services to deliver the innovation to customers and at the same time

determine new, low-cost, routes to market

Total 8,000 employees ■  Database: 1588, 19%

■  Mobile: 1349, 17%

■  Analytics: 817, 10%

■  Tech & Middleware: 1960, 24%

Distribution by Region: ■  Americans: 2202, 27%

■  EMEA: 3840, 48%

■  APJ: 1964, 25%

©  2012 SAP AG. All rights reserved. 11

SAP’s growth in revenue and margin To enable this growth, the TIP Board area also massively shifts resources from low- to high-growth areas each year

Technology & Innovation Platform Board Area Staff in FTE

Acquisitions 2948

Cross-BA transfers 1028

Lift (freed up) -1965

Shift within TIP 1692

Organic Growth 212

Total 3914

©  2012 SAP AG. All rights reserved. 12

SAP’s growth in revenue and margin HANA – BIG and SMALL

BIG - 100TB DRAM for 1 PB DATA 100 Nodes, 100 TB in DRAM | 10 Years of SD Data 1.2T Rows (330 Million transactions / day) Ad-hoc Simple Queries (e.g. Month Report) Return in 430ms – 647ms, Drill-down in 142ms Complex Queries (e.g. YoY report) Return in 1.2s – 3.1s SMALL - HANA ONE at AWS 60G Memory Amazon Instance 30G Memory for HANA 0.99 cents/hour Less than 10 minutes to get it up running Community Support

©  2012 SAP AG. All rights reserved. 13

AppHaus – rethinking our workspace

©  2012 SAP AG. All rights reserved. 14

SAP - A strategic enabler to the global economy for over 40 years Outlook

Our Three Imperatives

Empowering end-users with a singular focus on design and UX

Renewing our products and customer landscapes non-disruptively

Building a next-generation real-time platform for developers

Economics is at the heart of building products that are Desirable, Feasible, & Viable

©  2012 SAP AG. All rights reserved. 15

Managing & Evolving A Large Software Workforce A SAP Case Study

Dr. VISHAL SIKKA MEMBER OF THE EXECUTIVE BOARD | SAP AG

October 26, 2012