SAP Delivering the Intelligent EnterpriseThe Intelligent Enterprise features three key components 1....

SAP – Delivering the

Intelligent Enterprise

Baader Investment ConferenceSeptember 25th, 2018

Luka Mucic, CFO

2© 2018 SAP SE or an SAP affiliate company. All rights reserved.

Safe Harbor Statement

Any statements contained in this document that are not historical facts are forward-

looking 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 SAP’s future

financial results are discussed more fully in SAP’s filings with the U.S. Securities and

Exchange Commission (“SEC”), including SAP’s 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.


Agenda

SAP at a glance

Delivering the Intelligent Enterprise

Financial performance and long-term ambitions

Why invest in SAP


>400,000 companies turning to SAP to accelerate transformation –

Unmatched global reach and expertise across 25 industries


SAP is a key pillar of the global economy

The world’s leading business software company

… our customers brew

more than 77% of the

world’s beer production

… our customers distribute

more than 76% of healthcare

products worldwide

… our customers

produce 79% of the

chocolate on this planet


SAP’s strong position in the market

Achieved goal of

25%women in

management

12th year in a row!Most Sustainable

Software Company

#1market cap in the DAX

#17most valuable brand

worldwide

#59market cap

largest companies worldwide


Agenda

SAP at a glance



Why invest in SAP


Intelligent Enterprises elevate employees to focus on higher-value tasks

Industrial

Automation

Business Process

Automation

Digital

Transformation

Intelligent

Enterprises

Productivity

High Value Tasks

Repetitive Tasks

Automation

Time1960s – 1980s 1990s - 2000s 2010s - 2020s2000s - 2010s


The Intelligent Enterprise

features three key components

1. Intelligent Suite

2. Digital Platform

3. Intelligent Technologies

SAP is uniquely positioned to deliver the Intelligent Enterprise

Fusing intelligence across the deepest and broadest suite of business

applications seamlessly integrated on the most data rich architecture

SAP Leonardo: Artificial Intelligence | Machine

Learning | Internet of Things | Analytics


C/4HANA manages the entire front office seamlessly in real-time

Connects demand to the fulfillment engine in one end-to-end value chain

Single, complete view of customer

Unified Intelligent User Experience

Conversational, Contextual and Intelligent UX

SAP Customer Data CloudBuild Customer Trust and Loyalty

SAP Marketing Cloud

Market with Intelligence in the

Moment

SAP Sales Cloud

Build Relationships and guide

Customers throughout their journey

SAP Commerce Cloud

Personalized Shopping Experience

across Touchpoints

SAP Service Cloud

Make Customers happy

Built-in

Intelligence


SAP Leonardo orchestrates disruptive technologies – AI, ML, IoT, Blockchain –

and creates completely new ways of working

SAP delivers Leonardo in three ways:

Internet

of Things

Big Data

Data

Intelligence

Blockchain

Analytics

Machine

Learning

Industry Innovation KitsProven Methodology + Innovative

Technologies

Solution

Ideation

& Vision

Rapid

PrototypingIntegration

Blueprint

Business

Case

Development

Open Innovation ServicesCo-created with Customer/Partner

SAP ApplicationsLeonardo embedded

SAP Cloud PlatformSingle platform for all Leonardo innovations


Digital Platform unlocks data-driven intelligence and innovation

Provides the data foundation layer for intelligent applications and extends

business processes of the intelligent enterprise suite

Data

Management

Cloud

Platform

Digital

Platform

SAP Data Services

Smart Data Access

Smart Data Integration

Streaming Analytics

SAP CP Big Data Services

3rd Party Spark/Hadoop

Object Store (S3, Swift…)

Data Lifecycle Management

Integration Services

Meta Data & Lifecycle Management

Orchestration & Governance

SAP HANA Engines

SAP Vora Distr. Engines

SAP HANA

SAP Data Hub SAP Cloud Platform

SAP API Business Hub

MarketplacePortal

API Management

Mobile Services

Big Data Services

Security Services

Integration Services

UX Services

Collaboration Services

Analytics Services

Leonardo ML Services

Leonardo IoT Services

Best-in-class digital platform for new app

development, extensions, and integration

Unified data management to capture real-

time value from different types of data


Agenda

SAP at a glance



Why invest in SAP

14© 2018 SAP SE or an SAP affiliate company. All rights reserved. 14

Strong financial performance – rapid cloud growth, resilient core and

accelerating operating profit

FY 2017

Cloud Subscription

Revenue

€3.8bn+28%

Cloud and Software

Revenue

€19.6bn+8%

Operating Profit

€6.8bn+4%

Share of Predictable

Revenue

63%+2p.p.

Cloud users / SAP S/4

HANA Customers

~150m/>7,900

Total Revenue

€23.5bn+8%

H1 2018

Cloud Subscription

Revenue

€2.3bn +36%

Cloud and Software

Revenue

€9.3bn +10%

Operating Profit

€2.9bn +13%

Share of Predictable

Revenue

68% +2p.p.

Total Revenue

€11.3bn +10%

Cloud users / SAP S/4

HANA Customers

>160m/>8,900All figures based on Non-IFRS and include contributions from the 2018 Callidus Software, Inc. acquisition. Growth rates are at constant currencies.


Fast growing cloud organic solutions drive cloud subscription revenue

SAP cloud solutions at scale

in 2017 and 2020e

2017 2020e

+33%CAGR

Concur

€3.8bn

HCM

Ariba

€8.2 – 8.7bn

Cloud Platform

S/4HANA Cloud

Digital Supply Chain

HANA Enterprise Cloud Concur

HCM

Ariba

Fieldglass

HANA Enterprise Cloud

Acquired

Mostly in-

house

developed

C/4HANA

Analytics Cloud

C/4HANA

All figures based on Non-IFRS. Projected 2020 cloud subscriptions and support revenue includes a contribution from the Callidus Software, Inc. acquisition.

2017 – 2020 CAGR at constant currencies and based on the midpoint of the SAP 2020 Financial Ambition as published on July 19, 2018 and are repeated here for

informational purposes only. This is in no way an update to or reiteration of the outlook and long-term ambitions.

Overall Cloud

Business Network

Public Cloud

Private Cloud

Gross

Margins 2017 2020e

62%

71%

77%

>80%

57%

70%

6%

40%


Share of more predictable revenue increases

Delivering a much more resilient and sustainable business model

37%

Other 63%

Morepredictable

Total Revenue

€23.5bn

70 –75%More

predictable

25 –

30%Other

Total Revenue

€28 – 29bn

2020ambition

+7 to +12pp

2017reported

All figures based on Non-IFRS. ‘More predictable revenue’ refers to the sum of cloud subscriptions and support revenue and software support revenue as a percentage of total revenue.


Reaping the benefits of platform investment and scale in the cloud

Expanding gross margins and operating leverage

2015 2016 2017 2018(based on midpoint

of outlook)

30.5%

(-1.5pp cc) 30.1%

(-0.8pp cc)28.9%

(-0.9pp cc)

29.6% cc

(+0.8pp cc)

All figures based on Non-IFRS. percentage point deltas labeled ‘cc’ (at constant currencies) exclude exchange rate effects. 2018 outlook includes effects from the application of

IFRS 15 (total revenue: substantially less than +€0.1bn; operating profit: approximately +€0.2bn). The implied 2018 and 2020 margin outlook as published on July 19, 2018, is repeated here

for informational purposes only. This is in no way an update to or reiteration of the outlook.

Operating

Margin

Early stage cloud transition margin

headwind > efficiency gains

▪ Upfront investments in modernizing and

harmonizing acquired cloud infrastructures

▪ Mix shift effects from cloud transition

▪ Efficiency gains in software and support

Entering margin expansion phase

▪ Scaling cloud + platform migration

▪ New high potential cloud solutions exit start-up phase, ramp margins

▪ S&M leverage: declining cost of new business acquisition [2018 H1

total order entry +12%, S&M +7%@cc] + ever higher recurring &

transactional revenue base

▪ R&D leverage: single code base, away from “any DB”

2020(based on midpoint

of outlook)

30.7%

(+1.1pp)


Superior organic growth rates throughout cloud transition

Outpacing competition

20202015 2018

2.3

5.1

8.2 – 8.7CAGR

+32%

CAGR

+31%

2015 2018 2020

20.8

25.1

28.0 – 29.0CAGR

+7%

CAGR

+8%

202020182015

6.3

7.5

8.5 – 9.0CAGR

+6%

CAGR

+10%

Cloud Subscription Revenue(€bn)

Total Revenue(€bn)

Operating Profit(€bn)

All figures based on Non-IFRS. All CAGRs at constant currencies. CAGRS include contributions from the 2018 Callidus Software, Inc. acquisition and are based on the midpoints of the SAP

2018 Outlook and the SAP 2020 Financial Ambition as published on July 19, 2018 and are repeated here for informational purposes only. This is in no way an update to or reiteration of the

outlook and long-term ambitions.

(ambition) (ambition)(ambition)


Agenda

SAP at a glance



Why invest in SAP


SAP’s innovation leadership is helping customers

win in the digital economy

▪ SAP delivers the Intelligent Enterprise – an integrated suite of

applications with embedded intelligence built on the most advanced

in-memory platform available today: SAP HANA

▪ With SAP’s next generation ERP S/4HANA, customers massively

simplify their IT landscape, turn real-time data into actions and

reinvent their business models for the digital economy

▪ SAP C/4HANA manages customers’ entire front office seamlessly in

real-time

▪ SAP Leonardo orchestrates disruptive capabilities: AI/Machine

Learning, IoT, Big Data Analytics, Blockchain)

▪ SAP Data Hub provides data orchestration and meta data

management across heterogeneous data sources

SAP is a leader in sustainability

▪ Ranked #1 in Dow Jones Sustainability Index for 12th year in a

row; Ranked #1 in software industry by oekom

▪ Leading the way in innovative reporting: SAP Integrated Report

connects both financial and non-financial KPIs since 2012

SAP is outpacing the market

▪ SAP’s deep industry expertise and broad global footprint provides

resilience in an uncertain world

▪ SAP offers choice of deployment model (cloud, on premise or

hybrid) and seamless integration

▪ Growing operating profit and profitability even as we continue to

hire in fast growth areas

SAP is pushing relentlessly towards a much more

predictable business in the long term

Summary

Why invest in SAP

SAP – Delivering the

Intelligent Enterprise

Baader Investment ConferenceSeptember 25th, 2018

Luka Mucic, CFO

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