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Sap Business Package Global

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Sap Business Package Global document sample

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									The Leader in
Business Software
Solutions
SAP Senior Management Team
Global Investor Roadshow
April 23 – 25, 2003
             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 “believe,”
             “estimate,” “intend,” “may,” “will,” “expect,” and “project” and
             similar expressions as they relate to the Company are intended to
             identify such forward-looking statements. The Company 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 the
             Company’s future financial results are discussed more fully in the
             Company’s filings with the U.S. Securities and Exchange Commission
             (the “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.



 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 2
             Agenda



                                                       SAP – Leading the Way in
                                                        Business Software
                                                       Key Financial Data

                                                       SAP‘s Leading Business
                                                        Plattform
                                                       New Customer Business
                                                        Reality
                                                       2003 Opportunities


 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 3
             SAP Milestones over 30 Years


                                                                                          One Platform     Full Solution
                                                                                          Multi mySAP-     Provider for
                                                                                          Solutions:       Enterprise
                                                                          Internet        CRM, SCM, etc.   Application
                                                                          Multi-Product                    Software
                                                                          Vendor
                                                                                           €7,341 mill.
                                                                                            Revenue        Infrastructure
                                                                                                           Technologies
                                                                         €1,892 mill.
                                                                           Revenue
                                                         Client/Server
                                                                                                             ~29,000
                                                        €424 mill.                           28,400         Employees
                                                         Revenue                            Employees
                    R/2          Mainframe
                                                                          10,000
                                                                         Employees
                           €5.1 mill.
                           Revenue                        3,200
                               60                       Employees
                          Employees
R/1                                                       2,800
                                                                           7,500
                                                                         Customers
                                                                                              15,000            19,800
                                                                                                             Customers
                        50 Customers                                                        Customers
                                                        Customers           in 70
   €0.3 mill.               in 2                           in 35                              in 120           in +120
   Revenue                                                                Countries
 9 Employees              Countries                      Countries                           Countries        Countries

    1972                     1979               . . . . .1992                 1996               2001              2002

 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 4
             Improving the Top Line...: CAGR 29% last 12 Years



     € bn

         10
                          CAGR sales:                   29%
                                                                                                €7.34 €7.41
            8                                                                                          1%
                                                                                          €6.27 17%
                                                                                    €5.11 23%
            6                                                                 €4.32 18%
                                                                              43%
                                                                        €3.02
            4                                                                            mySAP Business
                                                                        59%                    Suite
                                    R/3         €1.9
                                          €1.38 38%
            2
                               €563m €936m 47%
                   €362m €425m
                                33% 66%
                    42% 18%
            0
                    1991 1992                   1993 1994 1995   1996   1997 1998 1999 2000     2001   2002



 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 5
               ...into the Operating Line*: CAGR 27% last 12 Years
   €m                                                                                                              €1,686
  1,600                                                                                                      €1,471 15%
                                                                                                              18%
                                                                                                €1,244
  1,400
                       CAGR Operating income*: 27%                                               32%

  1,200
                       CAGR Net income**: 26%                                            €942
                                                                                    €901 5%
  1,000                                                                             16%
                                                                             €775
                                                                             61%
      800
                                                                                                mySAP Business
                                                                      €482                          Suite
      600
                                                                      46%
                                                               €333
      400                                           €230       45%
                                  R/3          €116 98%
      200          €88 €76                     53%
                   66% -16%

           0
                  1991 1992                    1993     1994   1995   1996   1997   1998   1999 2000          2001   2002
 *excl. stock-based compensation and acquisition related charges: 1999 onwards
 *excl. extraordinary gains, acquisition related charges, Commerce One impact and other impairment charges
 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 6
                 SAP has continuously gained market share against
                 key competitors
                 Total license revenue - Relative Market Shares
                 (rolling 4 quarters; based on license revenues)
                    60%

                                                                                                                     54%
                                                                                                         51%
                    50%
                                                                                              47%
                                                                                    45%
                                                                         43%
                                                              41%
                    40%                                 39%
                                               37%                                                                          SAP
                                  36%
                                                                                                                            Siebel*

                    30%                                                                                                     Oracle **

                                                                                                                            Peoplesoft*

                                  19%          20%      20%    19%        19%                                               I2*
                    20%                                                              18%
                                                        17%                                    17%
                              17%              16%             16%       16%                              15%               JDE**
                                                                                    15%
                                                                                                                     14%
                              13%              12%             12%       12%        12%        15%
                                                        10%                                               14%         13%
                    10%                                        8%                               12%       12%
                               9%                                                                                     11%
                                               10%      10%               6%
                                                                                     5%         5%        5%         5%
                                  6%                                                 5%
                                               5%                                               4%
                                                        4%    4%          4%                              3%         3%
                      0%
                              Q2 2000- Q3 2000- Q4 2000- Q1 2001- Q2 2001- Q3 2001- Q4 2001- Q1 2002- Q2 2002-
                              Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003E
             Analysis based on Company Data and Financial Analysts Estimates
             * Forecast by Company Data and Financial Analysts (Siebel, Peoplesoft, I2, JDE)
             ** Fiscal year is not calendar year - Comparison based on most recent quarter (e.g. SAP Q1 vs. Oracle Q3)
 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 7
             The Global Leader in Business Software Solutions

       30 years of success

       Unparalleled global spread with
       60,000+ installations in 120+
       countries

       19,000+ companies run SAP – the
       largest installed base in the
       enterprise software sector

       Strong focus on R&D with ~8,200
       developers – a bigger investment
       than any other business software
       vendor

       Strategic vertical solutions for 23
       Industries

       The most complete business
       software suite


 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 8
             Agenda



                                                       SAP – Leading the Way in
                                                        Business Software
                                                       Key Financial Data

                                                       SAP‘s Leading Business
                                                        Plattform
                                                       New Customer Business
                                                        Reality
                                                       2003 Opportunities


 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 9
             Key Achievements in Q1 2003




      Q1 2003 total revenues are up 1% at constant currencies
      Q1 2003 net income up 186% yoy
      Q1 2003 pro forma operating margin increased 6 percentage points to 20%
      Strong performance in US and Japan
      SAP is the # 1 enterprise software provider in the US
      SAP extended global market share sequentially by another 3 percentage
       points
      Free Cash Flow increased 45% and was 50% of Q1 2003 revenues




 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 10
             Key Figures – 1st Quarter 2003

                                                            Q1 2003         Q1 2002
                                                             € millions      € millions    %

            License revenues                                     352               402    -12
                                                                                           -4**
            Total revenues                                     1,520          1,658        -8
                                                                                            1**

            Operating income                                     336
                                                                 298               186     60
              - Margin as a % of sales                            20                11      9*
            Income before income taxes                           311               127    145
               - Margin as a % of sales                           20                 8     12*
            Net income                                           186               65     186
               - Margin as a % of sales                           12                4       8*

            Earnings per share (in €)                          0.60             0.21      186

 * percentage points
 ** % currency adjusted – actuals 2003 converted with the exchange rates of 2002

 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 11
             Key Figures – 1st Quarter 2003


                                                         Q1 2003      Q1 2002
                                                         € millions   € millions   %


  EBITDA(2)                                                 348          240       45
      - Margin as a % of sales                               23           14        9*

  Pro forma Operating income excl. stock-                   304          238       28
  based comp. and acquisition-related charges(1)
       - Margin as a % of sales                              20           14        6*

  Effective tax rate                                       40%          47%        -7*


  Pro forma EPS excluding stock-based
  compensation, acquisition-related charges, and           0.64          0.35      83
  impairment-related charges(1)


* percentage points
 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 12
              License Revenue by Region – 1st Quarter 2003

                                          License Revenue Q1 2003: €352 mill.
                                                         -12%* | -4%**
                                                                                   Americas €88 m
                                                                                     -2%* | +26%**


                                                                                  of which US €71 m
 EMEA €205 m                                                                          +1%* | +24%**
 -23%* | -22%**


                                                                                        APA €59 m
                                                                                     +31%* | +49%**

                                                                              of which Japan €35 m
 of which Germany €86 m                                                            +133%* | +153%**
 -13%* | -13%**
* Y-o-y growth
** % currency adjusted – actuals 2003 converted with the exchange rates of 2002

 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 13
              Group Sales by Region – 1st Quarter 2003

                                           Total Revenue Q1 2003: €1,520 mill.
                                                         -8%* | +1%**

                                                                                   Americas €468 m
                                                                                      -20%* | +1%**

                                                                                  of which US €375 m
 EMEA €854 m                                                                            -20%* | -2%**
 -4%* | -3%**




                                                                                        APA €198 m
                                                                                       +7%* | +20%**
of which Germany €363 m
-3%* | -3%**                                                                 of which Japan €111 m
                                                                                      +25%* | +37%**
* Y-o-y growth
** % currency adjusted – actuals 2003 converted with the exchange rates of 2002

 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 14
              License Revenue Analysis – by Solution Q1 2003

                              Total License Revenue Q1 2003 : € 352 mill.



 mySAP Financials /                                                   mySAP SCM
 mySAP HR                                                               24%* (+4**)
 33%* (-10**)



                                                                      mySAP CRM
                                                                        21%* (+3**)
mySAP BI/ mySAP
Enterprise Portal/
mySAP SRM/
Marketplaces                                                          mySAP PLM
15%* (+4**)                                                              7%* (-1**)

* Of license revenue
** Y-o-Y growth in percentage points
 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 15
              License Revenue Analysis – by Industry Q1 2003



                                                         Consumer Industries
                                                                  14% (-4%*)
   Discrete Industries
   24% (3%*)


                                                           Service Industries
                                                                    25% (0%*)



   Process Industries
   24% (4%*)


   Public Services                                         Financial Services
   7% (-1%*)                                                         6% (-2%*)


 * Compared to FY 2002
 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 16
             Balance Sheet & Cash Flow Analysis


         * percentage points
                                                         in € mill.   Mar 31, 03 Dec 31, 02
         ** days
                                                                                              %

             DSO                                                         84**       87**      -3**



                                                                       Q1 2003    Q1 2002     %

             Change in Working Capital                                   535        360       49


             Operating Cash Flow                                        793          546       45
                    CapEx                                                -37          -58     -36
             Free Cash Flow                                             756          488       55
             Free Cash Flow as a % of Revenue                           50%         29%        21*




 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 17
             Agenda



                                                        SAP – Leading the Way in
                                                         Business Software
                                                        Key Financial Data

                                                        SAP‘s Leading Business
                                                         Plattform
                                                        New Customer Business
                                                         Reality
                                                        2003 Opportunities


 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 18
             SAP Product Portfolio: Best of Suite

          SAP for <Industry>                              SAP for Aerospace & Defense            ...
                                                          SAP for Automotive

             SAP Packaged                                 Service Management for <Industry>      ...
             Solutions                                    Financial Insights for <Industry>



          SAP xApps                                      mySAP Business Suite                            SAP Smart
                                                                                                         Business Solutions
           SAP xApp Resource                             mySAP ERP           mySAP Enterprise
            & Program Mgmt                                                      Portal                    mySAP         SAP
                                                          mySAP Financials
                                                                               mySAP Business             All-in-One     Business
           SAP xApp Product                              mySAP HCM
                                                                                Intelligence                              One
            Definition
                                                          mySAP CRM
           SAP xApp Mergers &                                                 mySAP Marketplace
            Acquisition                                   mySAP SCM
                                                                               SAP R/3 Enterprise*
           ...                                           mySAP SRM
                                                          mySAP PLM


            SAP NetWeaver                                                                                                SAP
                                                                                                                          Business
             SAP Enterprise Portal                       SAP Business Intelligence              ---
                                                                                                                          One
             SAP Master Data Mgmt                        SAP Exchange Infrastructure            ...                    Server




 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 19
             Value for Our Customers – Products + Services

                         PRODUCTS +
                                                                      SERVICES
                                                              SAP PARTNER &
                                                         CUSTOMER SERVICE NETWORK




                                                            Global
                                                                       Educational
                                               Prof.       Custom
                                                                       Services &    Hosting   Support
                                              Services     Develop-
                                                                        Products
                                                            ment



                                                         Business Maps & Engagement Tools


                                                                       Ramp Up


                                                                  REAL VALUE
 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 20
             SAP NetWeaver - The Business Foundation


             SAP NetWeaver                                                                                           Unifies and aligns people,
                                                    PEOPLE INTEGRATION                                               information and business
                                                        Multi channel access                                         processes
                                                                                                                       Integrates across
                COMPOSITE APPLICATION FRAMEWORK




                                                        Portal              Collaboration
                                                                                                                        technologies and




                                                                                             LIFE CYCLE MANAGEMENT
                                                    INFORMATION INTEGRATION                                             organizational boundaries
                                                        Bus. Intelligence   Knowledge Mgmt
                                                                                                                       A safe choice with full .NET
                                                                                                                        and J2EE interoperability
                                                        Master Data Management
                                                                                                                     The business foundation for
                                                    PROCESS INTEGRATION
                                                                                                                     SAP and partners
                                                        Integration         Bus. Process
                                                        Broker              Mgmt
                                                                                                                       Powers business-ready
                                                                                                                        solutions that reduce custom
                                                    APPLICATION PLATFORM                                                integration
                                                        J2EE                ABAP                                       Its Enterprise Services
                                                                                                                        Architecture increases
                                                        DB and OS Abstraction
                                                                                                                        business process flexibility


                                                  ...


 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 21
             Solutions for Small to Midsize Businesses




                                                   SAP CHANNEL PARTNERS
                Excellent industry knowledge and long-term relationship with SAP
                Creation and deployment of complete solution packages




                 Based on mySAP Business Suite               Standard software package
                 SAP Best Practices                          Covering business needs for
                                                               accounting, reporting, logistics,
                 SAP One Server Toolkit                       sales force automation, and more
                 Vertical Solution Development               Easy to configure and easy to use
                  Toolkit                                     Low investment and low cost of op.
                 3,500+ customers, 200+ partner              1,300+ customers, 100+ partner




 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 22
                               SAP xApps:
                               Orchestrate New Business Processes in a Heterogeneous Landscape




                                                            Merger & Acquisition
  Events (Context & Insight)
     Business Views,




                                               Resource &
                                              Program Mgmt
                                               Employee Relationship Management
                                                                    Sourcing                           Desk-
                                                                                                        top/
                                Legacy     HR            Finan-   PLM      E-Proc    SCM        CRM    Office
                                                          cials                                       Support

                                                          Functional Transactions (Hindsight)


                               Cross-functional, composite, collaborative, integrative applications
                                 Orchestrating heterogeneous underlying sources
                                 Decoupled from specific vendor applications
                                 Built on a unification platform for people, information and processes

 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 23
             xApp Example: Resource and Program Management


                              Resource and Program Management




                                                              Search Talent
                                              Skill Catalog




                                                                              Assignment




                                                                                                                     Projects
                                                                                             Pipeline




                                                                                                           Assess



                                                                                                                     Assess
                       Project




                                                                                             Project


                                                                                                           People
                       Initiate


                                                  & DB




                                                                                 Coll.
                     Projects                     HR           Finan-                   PLM              Time          Mail/
                     (Project                   (Skills,        cials                 (Product)         (Activity    Calendar
                      Data)                     Payroll)      (Budget)                                   Data)      (Communi-
                                                                                                                      cation)


              Initiatives                                                                  Key technologies used
                   Optimize product portfolio                                               Collaboration/Integration
                   Improve company competitiveness                                          Visualization
                   Increase employee satisfaction                                           Knowledge Management


 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 24
             Agenda



                                                        SAP – Leading the Way in
                                                         Business Software
                                                        Key Financial Data

                                                        SAP‘s Leading Business
                                                         Plattform
                                                        New Customer Business
                                                         Reality
                                                        2003 Opportunities


 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 25
             New Customer Business Reality
                                                Reduce costs
                                                   Improve efficiency by better processes & practices
                                                   Decrease TCO of IT solutions

                                                Faster ROI on IT investments
                                                   Leverage existing investments, i.e. integrate them
                                                   Solutions aimed at business pain points, not "three letters
                                                    acronyms"

                                                Adaptive Business Solutions
                                                   Service-based solutions for competitive strategies
                                                   Solutions that do not slow down the evolution of business

                                                Better visibility
                                                   Business performance management
                                                   “Real Time" (event driven) business

                                                  SAP meets customer requirements
                                                   Solutions for enterprises of all sizes
                                                   Breadth and depths of products based on technology
                                                    leadership
                                                   Next generation of applications (xApps)

 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 26
             Reduce Total Cost of Ownership

       How to capitalize on existing IT investments ?


                                                 ERP legacy                                   Challenge:
                                                 ~15 systems
                                                                                          Cost of Integration
                                                                      SAP R/3
                                                                                             15,000 interfaces
                                                                    ~30 systems,
  ERP non-SAP                                                    Versions 3.1I - 4.6B        Development cost:
   ~25 systems,
 different versions
                                                                                              ~ 75,000 USD /
                                                                      E-Procurement           interface
                                                                         10 units
                                                                                             Costs of
                Technical                                             SAP Markets             ownership:
                 systems                                            Enterprise Buyer           ~ 10,000 USD /
                                                                   Professional Edition       year / interface
                             Trading                            e-Sales                      Overall:
                                                Collaborative                                 150 Mio. USD / year
                                                Engineering


         ... through SAP integration of heterogeneous systems !

 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 27
             Value for Our Customers – Reduce TCO
Real Life Customer Example
                                 Customer                Potential Cost Savings in Shared Services (per year)
                                 Global                    SAP NetWeaver                   > € 53 million
                               Enterprise                  SAP Enterprise Portal           > € 20 million
                              Manufacturing
                                Industry
                                                           SAP Financials                  > € 48 million
                                                           SAP Human Resources             > € 3 million




                                    Division 1           Potential Cost Savings (per year)
                                                         Division 1
                               Division 2                   Procurement (MRO)             > € 7 million
                                                         Division 2
                           Division 3
                                                            Engineering (PLM)             > € 15 million
                      Division 4                         Division 3
                      Complete                              Logistics Processes (SCM)     > € 60 million
                       Industry
                       Solution                          Division 4
                                                            CRM                           > € 7 million



                                                         Total                           € 213 million




 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 28
                 Reduce TCO via SAP NetWeaver (XI)
Real Life Customer Example
                                                               Misc
                                                               13%          IT
                                                                      Infrastructure
                                                                          20%
                                                                                Licences
                                                                IT Costs           5%
                                                               €500 million
             Remaining                                   Operations    Implementation
             Operational              Interfacing                                                                Remaining
                                                           40%               22%                   Costs of       Implem.
               Costs                     Costs
                                                                                                   Integration     Costs
                  50%                     50%
                                                                                                    67%      33%
                  Operations                                                                      Implementation
                  €200 million                                                                      €110 million


     Potential Cost Savings                                                                      Potential Cost Savings
for Interfaces (35%): €35 million                                                          for Integration (25%): €18 million



                     SAP NetWeaver (XI) is able to reduce IT costs from 1.7%1) to 1.5%2) of overall
                             revenue; this means cost savings of €53 million per year
1) Customer‘s Estimate
2) Industry Benchmark
 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 29
             Deliver Better ROI


                                                         cash
                                                                                         Leverage IT
                         Reduce Initial                  flow
                                                                                         Landscape
                         Investments

                                                                      Improve
                         Accelerate Time-to-                         Efficiency
                         Benefit


                         Improve Efficiency
                                                                         Accelerate           time
                                                                       Time-to-Benefit
                         Leverage IT
                         Infrastructure
                                                          Reduce Initial
                                                           Investments




 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 30
   Divergence     The Next Move to Adaptive Business Solutions




                                                         Technology               Technology
                                                         Sea Change               Sea Change



                                                                           SCM

                                                                       CRM
                                                                      HR



                                                         ERP
                                                                                 PCAs*
   Convergence




                                                         1993                    2003
                 PCA* = Packaged Composite Application (as delivered through SAP xApps)
 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 31
             Web Services

       A Web service is a modular application functionality that can be
        published
        discovered and
        invoked over the internet using open Internet standards




        Analysts are telling our
        clients to “Demand Web                                           2                        1
                                                              Service                                  Service
        services interfaces from                             Discovery                                Publication
        packaged apps vendors”                                               Service Directory
        and to verify that “the Web
        services interfaces expose
        all the objects they need                                                    3
        access to” – Forrester,                                              Service Invocation
        December, 2001
                                                         Service Requester                        Service Provider



 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 32
             Web Services: Examples
    A Web Service is a programmable self-contained, self-describing,
    modular application functionality that can be published, discovered
    and invoked through open Internet standards.

     Intelligent product catalog                         Publish and analyze financial
     search                                              reports (XBRL based)

      Product availability check                         Finance: Derivatives trading

      Pricing inquiry                                    Oil&Gas: Joint venture
                                                         reporting
      Customer credit check
                                                         Electronic bill presentment and
      Order status check                                 payment
      Inventory check                                    Matching vacancies and job
                                                         applicants profiles
      Vendor managed inventory
           Demand forecasts, stock                      Postal service address check
            replenishment …
                                                         Automated Web searches
      Dynamic bidding                                    (Google)
 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 33
             Web Services

                    Assemble enterprise web services and web services from partners
                          to build flexible event-driven business scenarios.

         Role-based
         User Interfaces



        Composite
        Business
        Scenarios
                                                   Service request   Price   ATP   Delivery delay



         Focused
         Operational
         "Nodes"




 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 34
             Adaptive Services-Based Business Solutions


                    Services                                               Shared Services
                  “on demand“                            Corporate           Finance
                                                                             HR


                                                                                                       Scaled for
                                                             Division ..
                Channel Mgmt.                                                                       Your Subsidaires
                                                          Division 1
                                                                                                     mySAP All-in-One
                                                         Designed
                     Web                                                                                            mySAP ERP
                                                         for Your
                   Services                                                                  SAP Business One
                                                         Industry


                         VMI




                                                                                                         Ready for
                                                                                                        Your Future


                 Production                              Distribution              Service


 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 35
             Agenda



                                                        SAP – Leading the Way in
                                                         Business Software
                                                        Key Financial Data

                                                        SAP‘s Leading Business
                                                         Plattform
                                                        New Customer Business
                                                         Reality
                                                        2003 Opportunities


 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 36
             Summary




     In a challenging market environment, SAP is focused on:

           Increasing market share
                     SAP’s worldwide market share compared to the Top 5 competitors increased
                      to 54% in Q1 2003 from 51% in Q4 2002 (on a rolling four quarter basis)
                     SAP expects to continue to gain market share in 2003


           Improving profitability
                     Operating  income (excluding stock based compensation and acquisition-
                      related charges) went up by 28% in Q1 2003 despite an 8% decrease in
                      revenues
                     2003 guidance focuses on profitability


           Market readiness
                     Increased customer satisfaction (especially in the U.S.)
                     Increased partner engagement with SAP
                     Key performers come back to SAP
                     Comprehensive product set backed by strong technology offering
                      (SAP NetWeaver)

 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 37
              Outlook 2003

      While the world economy remains difficult and the geopolitical
      environment is still unpredictable, SAP has not changed its
      guidance for 2003. The Company expects to continue to gain
      market share, and based on modest revenue growth, continued
      cost containment and customer buying patterns in line with
      normal business seasonality, the Company continues to expect
      its 2003 pro forma operating margin,1 excluding stock-based
      compensation programs and acquisition-related charges, to
      increase by around 1 percentage point compared to 2002. Pro
      forma earnings per share1 for 2003, excluding stock-based
      compensation, acquisition-related charges and impairment-
      related charges are expected to be in the range of €3.45 per share
      to €3.60 per share.

      Management does not provide its guidance on operating margin and earnings per share based
      on US-GAAP measures because these measures include expenses like stock based
      compensation, impairment related charges and acquisition related charges. Management
      deems these expenses as either not being meaningful to fully assess the financial
      performance of our core operations or as highly dependent on the movement of SAP’s share
      price, or the share price of companies we acquire or in which we invest.

 SAP AG 2003 Global Roadshow, EMEA, April 2003, WB 38
The Leader in
Business Software
Solutions
SAP Senior Management Team
Global Investor Roadshow
April 23 – 25, 2003

								
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