SAP Global Corporate Affairs (January 29, 2021)

SAP: The World’s Largest Provider of

Enterprise Application Software

Customers Strategy SAP’s End-to-End Solutions

• Approx. 80% of SAP’s customers are SME • SAP is committed to supporting every customer to Applications, Technology & Support
• SAP customers include: become a best-run business. Together, we help the • Packaged solutions for 25 industries and 12 lines-of-
o 92% of the Forbes Global 2000 companies world run better and improve people’s lives business: on premise, cloud, hybrid
o 98% of the 100 most valued brands • Best-run businesses are intelligent enterprises – • SAP S/4HANA: Market-leading Intelligent ERP, delivered
o 97% of the greenest companies (Newsweek) applying advanced technologies and best practices with intelligent capabilities and best practices for every
• Our customers distribute 78% of the world’s food and within agile, integrated business processes to become industry, available in the cloud or any-premise
82% of the world’s medical devices more resilient, successful and sustainable
• 77% of the world’s transaction revenue touches an SAP SAP S/4HANA market
system1 Market Position 18,000
performance2
11,500
16,000
~15,100
16,000 13,800
Enterprise Application Software 14,000
8,900
11,100
12,600
Financials • SAP is a market share leader in enterprise resource 12,000 6,400
8,500
10,000
14,100
10,000 15,100
planning (ERP), analytics, supply chain management, 7,500 12,000
Revenue – FY2020 (non-IFRS, growth rates @cc) 8,000
human capital management, master data management, 6,000 9,500
Cloud revenue €8.09b (+ 18%) 6,900 Licensed customers
data integration as well as in experience management 4,000
2,000
Cloud and Software revenue €23.23b (+ 3%) • Recognized database leader 0
Total revenue €27.34b (+ 1%) • Broadest portfolio of modular and suite solutions
available on premise, in the cloud and hybrid
Revenue – Q4/2020 (non-IFRS, growth rates @cc)
• SAP Digital Supply Chain solutions with embedded
Cloud revenue €2.04b (+13%) Top Cloud Vendor intelligence and enabled Industry 4.0 (IioT) scenarios
Cloud and Software revenue €6.58b (+ 1%) • Cloud user base: ~238m users help companies of every size and industry manage their
• Cloud infrastructure: choice across hyperscale cloud entire supply chains digitally, from design throughout
Total revenue €7.54b (-2%)
vendors (Alibaba, Amazon, Google, Microsoft) planning, manufacturing, delivery and operations
Revenue by region FY2020 • Largest cloud portfolio: >100 solutions for all lines-of- • Total workforce management solutions: SAP Success-
(€ m, non-IFRS / share of total rev. in %) business (LoB) as well as software suites Factors suite supports 42 languages. SAP Employee
• 164m users run on SAP SuccessFactors solutions Central localized for 101 countries, used by >4,000
Americas • 70 datacenters in 37 locations in 17 countries customers, SAP HXM Suite used by >7,000 customers
EMEA
11,109 12,069 • SAP Digital Commerce for online SAP and partner • SAP Customer Experience: Leader in digital commerce
41% 44% offerings >205,000 orders from 171 countries and digital experience platforms
o Commerce Cloud: >$524b gross merchandise volume
APJ Innovation o Customer Data Cloud: 7.6b consent records, 3.1b identities
4,165 o Marketing Cloud: >19b personalized interactions
15% • >€4.5b R&D expense in 2020. R&D expense ratio:
o Sales Cloud & Service Cloud: >2b customer records
16.3% (IFRS; R&D expense as % of total revenue)
and interactions in 2020
Outlook 2021 (non-IFRS@cc, Jan 29th, 2021) • R&D headcount (FTE): 29,580 at 12/31/2020, equaling
• With a total commerce volume of >$4.1tn p.a., SAP’s
Cloud revenue €9.1b to €9.5b 28.9% of total headcount
Business Network provides leading solutions:
• >100 Development locations worldwide
Cloud and Software revenue €23.3b to €23.8b o Goods and services: >5.4m businesses on SAP Ariba
• 20 Development centers (SAP Labs) worldwide
o SAP Fieldglass: >1million new workers added in Q4
Operating profit €7.8b to €8.2b • 17 Co-Innovation Labs worldwide • SAP Support uses AI technology, safeguarding mission-
Share of predictable revenue (total of cloud subs. approx. • 9 SAP Innovation Center Network locations critical processes. It proactively optimizes operations
& support rev. and software support rev.) 75% • >22,200 SAP partner companies in >140 countries and enables the Intelligent Enterprise
Operating Cash Flow / Free Cash Flow ~€6.0b / >€4.5b • Sapphire Ventures: Invested in >110 IT startups
Ambition 2025 (non-IFRS) >55 IPOs and M&A exits since 2011
Services / Concur / Qualtrics
o >$4b assets under management
Cloud revenue >€22b • End-to-end services including advisory and accelerators
o Operates independently from SAP
drive digital transformation, delivering training and
Total revenue >€36b o Provides SAP early access to trends & innovation
enablement as well as strategic premium engagements
Operating profit >€11.5b • >900 patents granted and validated in 2019
• Concur (travel, expense, invoice) has >71m end users
• openSAP: >1.1m unique learners, >4.9m enrollments
Share of more predictable revenue Approx. 85% • Qualtrics’ experience management software drives
• Artificial intelligence and robotic process automation:
customer loyalty, employee engagement, brand and
>300 innovations in SAP’s applications product quality. >13,000 companies use Qualtrics
Strong, sustainable Growth
(non-IFRS)
SAP Business Technology Platform (BTP)
Cloud Revenue Total Revenue Operating Profit • BTP helps customers transform into intelligent Basic and Employee Facts
€8.0b €27.3b €8.3b enterprises • Headquarters: Walldorf, Germany
• It encompasses database & data management, • Founded: April 1, 1972
analytics, application development & integration, as well • Listing: Frankfurt, New York
as intelligent technologies, such as: • 102,430 employees worldwide (Dec. 31, 2020)
€10.7b o SAP HANA: >34,000 direct customers; >54,000 o 145 nationalities worldwide
€2.9 b
direct+ indirect customers. Leading in-memory o Employee retention at 95.3%
€0.1b database, on premise & cloud o Employee Engagement Index at 86%
o Powerful data warehousing and analytics solutions o 27.5% women in management
2009 2020 2009 2020 2009 2020 such as SAP Data Warehouse Cloud, SAP HANA o >75% of SAP employees are SAP shareholders
Cloud, SAP BW/4HANA, and SAP Analytics Cloud
• #1 software company in Dow Jones Sustainability Index
o SAP Integration Suite & SAP Extension Suite: >16,500
for 14 years
customers, >12,500 integration customers.
Useful Links
o SAP Data Intelligence: combines AI and machine SAP Profile – Executives – Supervisory Board
1) Source: Oxford Economics/SAP analysis, Feb. 2018
2) Definition of SAP S/4HANA see p. 33 of SAP’s Q4/2019 statement learning for data and information management Products – Industries + Solutions – Intelligent Enterprise
Financials – Events – Photos + Films

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