SAP Global Corporate Affairs (July 18, 2019)

SAP: The World’s Largest Provider of

Enterprise Application Software

Customers Strategy SAP’s End-to-End Solutions

• SAP serves >437,000 customers in >180 countries • SAP is committed to supporting every customer to User interface designed with a cloud experience mindset
• SAP customers include: become a best-run business. We help the world run
o 92% of the Forbes Global 2000 companies better and improve people’s lives 1 – Applications
o 98% of the 100 most valued brands • Best-run businesses are intelligent enterprises – • Packaged solutions for 25 industries and 7 lines-of-
o 97% of the greenest companies (Newsweek) breaking down silos and adopting intelligent, dynamic, business: on premise, cloud, hybrid
• Our customers distribute: cross-functional business processes to deliver optimal • SAP S/4HANA: market-leading intelligent ERP
o 78% of the world’s food experiences. Our strategy is to be “the Experience o Digital core that drives business agility to meet ever-
o 82% of the world’s medical devices Company powered by the Intelligent Enterprise” rising customer expectations, deliver new products
• 77% of the world’s transaction revenue touches an and services, and manage resources efficiently
o The only SaaS ERP solution that can be adopted in
SAP system1
Market Position hybrid scenarios such as customer situations that
Enterprise Application Software require deployment on hyperscaler infrastructure or
Financials • SAP is a leader in: within customer-owned data centers
Revenue – FY2018 (non-IFRS, growth rates @cc) o Enterprise application software
SAP S/4HANA market
o Analytics and Intelligent Technologies
Cloud revenue €5.03b (+ 38%) performance 10,900
10,500
o Experience management and customer experience 9,500
14,000
Cloud and Software revenue €20.66b (+ 10%) • Recognized database leader Licensed customers 11,500
12,000
Total revenue €24.74b (+ 11%) • Broadest portfolio of modular and suite solutions 10,000 8,900
8,300
6,900 7,900
Revenue – Q2/2019 (non-IFRS, growth rates @cc) available on premise, in the cloud and hybrid: 8,000 6,300
5,800
5,400
customers have full choice of consumption model 6,000 1,300
2,700 3,700
Cloud subscription and support €1.7b (+ 35%) 4,000
900 4,100
Cloud and Software €5.5b (+ 8%) 2,000 370
Top Cloud Vendor 3,200
0
Total revenue €6.7b (+ 8%) • Cloud user base: ~200m users Q2/15 Q2/16 Q2/17 Q2/18 Q2/19
• SAP Cloud Platform: choice across hyperscale cloud
• SAP C/4HANA: #1 in commerce and #2 in sales
Revenue by region FY2018 vendors (Alibaba, Amazon, Google, Microsoft)
(€ m, non-IFRS / share of total rev. in %) according to industry analysts
• Largest cloud portfolio: >100 solutions for all lines-of-
o Commerce Cloud: 32m orders in Q2/2019
business (LoB) as well as business suites
Americas o Customer Data Cloud: >2.1b consent records and
EMEA • HCM market leader: >125m users on SuccessFactors
9,713 1.7b identities
11,104 • 72 datacenters in 37 locations in 17 countries
39% o Litmos: 15m learners & 1b courses
45%
• SAP Digital for online SAP and partner offerings. o Marketing Cloud: >5.2b personalized interactions p.a.
>152,000 orders from >137 countries o Sales Cloud: used by 7m sales people
APJ
3,891 o Service Cloud: 25m app starts by service technicians
16%
Innovation • SAP Digital Supply Chain: manages entire supply
chains digitally: From design, planning, manufacturing,
Outlook 2019 (non-IFRS@cc, upped on April 24, 2019) • >€3.6b R&D expense in 2018. R&D expense ratio: delivery and operations. Enables visibility across the
Cloud revenue €6.7b to €7.0b 14.7% (IFRS; R&D expense as % of total revenue) network and business innovation
Cloud and Software €22.4b to €22.7b • R&D headcount (FTE): 26,668 at 6/30/2019, equaling • SAP Leonardo: a comprehensive portfolio of intelligent
27% of total headcount technologies including Machine Learning, IoT,
Operating profit €7.85b to €8.05b
• >100 Development locations worldwide Blockchain, Analytics and Big Data
Ambition 2020 (non-IFRS) • 20 Development centers (SAP Labs) worldwide • SAP HANA Cloud Services: the gateway for any data of
Cloud revenue €8.6b to €9.1b • 17 Co-Innovation Labs worldwide any size, on-premises and cloud
Total revenue €28.6b to €29.2b • 5 SAP Innovation Center Network locations • Total workforce management solutions: Success-
• Partner network with >19,800 SAP partner companies Factors suite supports 42 languages. Employee Central
Operating profit €8.8b to €9.1b
• Sapphire Ventures: Invested in >90 IT startups. localized for 97 countries, used by >3,300 customers
Share of predictable revenue (total of cloud 70% −
53 IPOs and M&A exits since 2011 • Qualtrics’ experience management software: drives
subs. & support rev. and software support rev.) 75%
o $2.5b capital under management customer loyalty, employee engagement, brand and
Ambition 2023 (non-IFRS)
o Operates independently from SAP product quality. > 10,500 companies use Qualtrics
Cloud revenue More than triple 2018 figure (€5.03b) o Provides SAP early access to trends & innovation
Total revenue >€35b • 700 patents granted and validated in 2018 2 – Business Networks
Operating margin Expand by approx. 500 bp (1 pp /yr) • openSAP: >3.5m enrollments on online learning platform • With a total commerce volume of >$3.3tn p.a., SAP’s
Cloud gross margin 75% Business Network provides leading solutions:
o Goods and services: > 4.2m businesses on SAP Ariba
Share of more predictable revenue to approach 80% Basic Facts o Travel & expense: Concur used by ~60m travelers
• Headquarters: Walldorf, Germany o SAP Fieldglass customers manage 5.9m contingent
• Founded: April 1, 1972 workers in >180 countries
Significant, sustainable Growth
• Listing: Frankfurt, New York
Cloud Revenue Total Revenue Operating Profit
• 98,332 employees worldwide (6/30/2019) 3 – Platforms
€5.0b €24.7b €7.2b
o >147 nationalities worldwide • SAP HANA, with >30,000 customers: market-leading
o High employee satisfaction: Employee Engagement platform for real-time computing:
Index at 84% in 2018 o Open platform, transactional and analytical
€10.7b o >70% of SAP employees are SAP shareholders o Rapid development environment on premise & cloud
€2.9 b
• SAP Cloud Platform with >14,500 customers is:
€0.1b o SAP’s integration and extension platform
Useful Links o Center of SAP’s intelligent suite
2009 2018 2009 2018 2009 2018 SAP Profile – Executives – Supervisory Board • SAP HANA Enterprise Cloud: access to the full
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Source: Oxford Economics/SAP analysis, Feb. 2018 Products – Industries +Solutions – Intelligent Enterprise potential of SAP HANA via private managed cloud
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 SAP Global Corporate Affairs - Dietmar-Hopp-Allee 16, 69190 Walldorf, Germany