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SAP – Leading the Digital TransformationCommerzbank Sector ConferenceFrankfurt, September 1, 2016 2016 SAP SE Investor Relations. All rights reserved.Page1

AgendaFocus – SAP Digital Business ServicesAn introduction to SAPHelping customers win in the new digital economySAP’s long-term financial ambitionWhy invest in SAPAppendix 2016 SAP SE Investor Relations. All rights reserved.Page2

SAP Digital Business Services is the trusted partnerIndustrialized &preconfiguredServicesDirect feedback intoSW developmentReduceTCI & TCORealize thedigitalenterprise 2016 SAP SE Investor Relations. All rights reserved.FasterTime-to-ValueMove customersto the CloudMake S/4HANAthe digital corePage3

Next Generation ServicesNew Products to High Adoption Fast, Standard, SafeStandard DevelopmentNew Product ReleaseInnovation Adoption LabVALUEASSURANCEModel Company: Run Live Ready-to-go E2E system landscape Industry business content Rapid prototyping (in the Cloud) Team: Dev & Services, dynamic, rotational staffing Customer selection: digital lighthouse accounts asstart Coverage: global, Presales to Run supporting each MUFirst focus: IoT and Machine LearningRoll-in: direct feedback into Development & ServicesRoll-out: Spread knowledge into ecosystem Service extensions, no SW dev 2016 SAP SE Investor Relations. All rights reserved.Page4

AgendaFocus – SAP Digital Business ServicesAn introduction to SAPHelping customers win in the new digital economySAP’s long-term financial ambitionWhy invest in SAPAppendix 2016 SAP SE Investor Relations. All rights reserved.Page5

SAP is the world’s leading business software companyA compelling customer baseUnmatched vertical expertise 320,00025 CustomersIndustriesPercent Global 2000 that Run SAP 2016 SAP SE Investor Relations. All rights reserved.Page6

For over 40 years, SAP has turned technological change into customer valueBusiness software &online processingGlobalization &mainframe computingInternet & clientserver technologiesIn-memory &cloud computingSAP R/1:SAP R/2:SAP R/3 and SAP ECC:SAP S/4HANA:Enabled customers to geta complete view of theirbusiness with real-timeprocessing of data acrossintegrated modules formaterials, procurement,and accounting.Helped customerssuccessfully manage largeglobal enterprises on amainframe architecture,while retaining theintegration and real-timeprocessing capabilities ofSAP R/1.Enabled customers to takeadvantage of client-serverand internet technologies.Created a unified graphicaluser interface and newfunctional components.Helps customers thrive inthe New Digital Economy.We are now focused oneradicating complexityand running live with ourin-memory databasetechnology SAP HANAand cloud computing.1972 2016 SAP SE Investor Relations. All rights reserved.198219922015Page7

Today, SAP is running the world’s mission-critical business processes76% of the world’s transaction revenuetouches an SAP systemSAP’s brand value ranked #22 ofTop 100 worldwide1)SAP touches 16 trillion of consumerpurchases around the worldAmong the Top 100 companiesworldwide by market capitalizationSAP customers distribute more than78% of the world’s foodBroadest global footprintAPJ3.2bn 15%SAP customers produce more than82% of the world’s medical devicesRevenueAmericasEMEA9.2bn 44%8.4bn 41%20151) Source:MillwardBrown 2016 BrandZ Top 100 Global Brands 2016 SAP SE Investor Relations. All rights reserved.Page8

SAP will continue to drive business value – fueled by three powerful trendsaffecting all businesses in all industriesInnovationsSoftware-as-a-serviceCloud serviceBig data analyticsIn-memory databaseMachine learning &artificial intelligenceInternet of ThingsNetwork marketplacesHyper-connectivityOnline platformsMobile devicesSocial media 2016 SAP SE Investor Relations. All rights reserved.Business value Substantial economies of scaleEasier consumption of softwareLower barriers to entryBenefits of IT spread more widely Instant insight and decision-makingbased on “live” data Reduced operational expenses drivenby new wave of automation New business modelsImproved business processesReduced risks and costs Multiple new ways in which companiescan interact with their stakeholdersPage9

AgendaFocus – SAP Digital Business ServicesAn introduction to SAPHelping customers win in the new digital economySAP’s long-term financial ambitionWhy invest in SAPAppendix 2016 SAP SE Investor Relations. All rights reserved.Page10

Only SAP can help businesses implement their digital strategyBusinessNetworksCustomerExperienceDigital CoreWorkforceEngagementSAP HANA PlatformSecurity 2016 SAP SE Investor Relations. All rights reserved.Internet of Thingsand Big DataSAP HANA Cloud PlatformPage11

In the digital core, SAP’s next-generation business suite SAP S/4HANA helpscompanies harness “live” data for immediate action Groundbreaking new architecture: SAP S/4HANA has changedERP from a system of record to a system of innovation It provides immediate insight, intelligence beyond automation,integration between departments, and connections to the world These technological advances were made possible by themost advanced in-memory platform available: SAP HANA SAP S/4HANA provides an enhanced user experience withSAP Fiori SAP offers on-premise and cloud editions to provide customerswith real choice SAP S/4HANA is catalyzing broad customer adoption of ourentire innovation portfolio 2016 SAP SE Investor Relations. All rights reserved. 3,700SAP S/4HANA customers – fastestupgrade cycle in SAP’s history,four times the adoption rate of SAPR/3 in the 1990’s 7,000trained partners3,750startups developing on SAP HANAplatformPage12

SAP helps companies, ISVs, and partners create value in networked economiesSAP’s unique business network assets SAP is leading the charge in connecting businesses and building newecosystems across all spend categories – materials and services with SAPAriba, contingent labor with SAP Fieldglass, and travel with Concur These network solutions are highly synergistic to SAP’s other offeringsSAP is a forerunner in the Internet of Things (IoT) revolution Drawing on deep insights into companies’ business processes andleveraging a broad range of products and technologies IoT use cases include: Monitoring the status, location, and movement of physical assets Providing contextualized experiences based on information fromsensors Delivering new services based on IoT-enabled products SAP HANA Cloud Platform plays a key role in consolidating all the datagenerated by IoT – and enable advanced analytics on top of it 2016 SAP SE Investor Relations. All rights reserved. 2.2 millionconnected companies tradeover 820bn of commerce onthe SAP Ariba Network 42 millionend users process travel andexpenses effortlessly with Concur 2.6 millionflexible workers were managed inabout 130 countries over the past12 months on the SAP Fieldglassplatform 75 billionconnected devices in the Internetof Things by 2020Page13

Companies can now run real time – based on a holistic view of the organization,instant insights, and predictive analyticsTotal transparency Get a 360 view in real timeVisualize insights in contextAlign on one source of truthInstant insights Answer ad-hoc questions on-the-flyAnalyze root causesSimulate impact of decisionsSimplified boardroomprocesses Reduce preparation time and effortFor a demo, visithttps://www.youtube.com/watch?v ofq7ygnWpbw 2016 SAP SE Investor Relations. All rights reserved.Page14

AgendaFocus – SAP Digital Business ServicesAn introduction to SAPHelping customers win in the new digital economySAP’s long-term financial ambitionWhy invest in SAPAppendix 2016 SAP SE Investor Relations. All rights reserved.Page15

2016 outlook and long-term ce**Cloud subscriptions 2.30bn 2.95 – 3.05bnCloud & Software 17.23bn 6% to 8%Total revenue 3.8 – 4.0bn 7.5 – 8bn 20.81bn 23bn – 23.5bn 26bn – 28bnShare of morepredictable revenue60%63% to 65%70% to 75%Operating profit 6.35bn 6.7 – 7.0bn 8 – 9bn 6.4 – 6.7bn* All numbers non-IFRS** All numbers non-IFRS and at constant currency 2016 SAP SE Investor Relations. All rights reserved.Page16

SAP continues to grow its cloud business rapidlyWell-positioned for strong growth in the cloudCloud subscriptions &support revenue Broadest portfolio of best-in-class cloud offerings (SaaS offeringsfor LoB, CEC, and HCM solutions, business network solutions,early HEC traction) Extremely synergistic to SAP S/4HANA, providing tremendouscross and upsell opportunities Continued solid growth in New Cloud Bookings in Q2 2016 Combination of backlog and deferred revenue indicatescontinued strength in contractually committed future cloudsubscriptions and support revenueUpper endCAGR 28%(2015 – 2020) 3.8 –Upper end 4.0bnCAGR 32%High growth sustained through additional drivers Upscaling of SaaS offeringsExpanding Concur internationallyExpanding HEC and fostering a strong ecosystem (IaaS)Enhancing S/4HANA cloud editions (public & private)Refining the Digital Enterprise Platform (BusinessObjects Cloud,SAP HANA Cloud Platform, IoT Platform) (PaaS) 2016 SAP SE Investor Relations. All rights reserved. 7.5 – 8.0bn(2015 – 2017) 2.3bn201520172020Page17

Our core business remains rock solidSoftware licenses revenue SAP S/4HANA innovation cycle catalyzes growth across SAP’sinnovation portfolio and strategic industries Certain solution areas – e.g. HCM, Procurement, CEC, T&E1) –are rapidly shifting to the cloud SAP S/4HANA now available as cloud subscription option 2016 outlook implies flattish license performanceIllustrative exampleSupport business can grow even if licenses 32 Support 10 billion support revenue base – and growing Very high renewal rates ( 97%) Net support renewal rate is 96%, reflecting well-received cloudconversion options and very large customers qualifying for PSLE(Product Support for Large Enterprises) The blended support fee across the entire support customer baseis 20%1) HCMSoftwareY0Y1Y2Y3Y4Y5Example: Pool of customers buying 1.0bn in software licenses in Y0;deals signed at year-endsAssumptions: License purchases decline by 5% p.a. Net supportrenewal rate of 96% Blended support fee 20% p.a.– Human Capital Management, CEC - Customer Engagement & Commerce, T&E – Travel & Expense 2016 SAP SE Investor Relations. All rights reserved.Page18

SAP is pushing towards a larger, stickier, more predictable businessTotal revenue mix2020ambition2015 20.8 bn 11% 18pp29% 26–28 bn 71%89%Much larger cloud business in 2020 relative to corebusiness – change in revenue mix weighs on blendedoperating margin for the group in short/medium termShare of more predictable revenue2020ambition201540% 20.8 bn60% 15pp70–75%Share of more predictable revenue is expected toincrease to 70–75% by 2020Cloud subscription and support revenueSupport Cloud subs – share of revenueAll other revenueAll other revenue 2016 SAP SE Investor Relations. All rights reserved.20– 26–28 bn 25%Page19

The cloud gross margins are on track towards SAP’s long term ambition Business network gross margin** increased to75.9% in H1 2016Businessnetwork 80%long termgross margin*202071%ambition 26–28bnPubliccloudPrivatecloudAll other revenue Overall H1 2016 cloud gross margin improvedto 65.7%, up 30 basis points year-over-year Expect stable cloud gross margin in 201629% 80%*Cloud subscriptions and support revenue Private cloud gross margins still negative butexpected to break even by year-end 40%* Speeding up investments in cloud infrastructureto deliver on the massive cloud bookings andbacklog Migrating acquired cloud offerings onto HANA –massive benefits for customers – significantlong term savings* Long term cloud subscriptions and support gross margin potential in mature state (excluding cloud-related professional services)** Cloud gross margin of business network segment 2016 SAP SE Investor Relations. All rights reserved.Page20

Expanding absolute operating profit which drives operating cash flow Revenue mix shift means that managing to ablended group margin would discriminate againstour fast growth businesses Operating cash flow expected to show a positive trendin 2016 – following operating profit evolution andhelped by lower restructuring related cash outflows SAP is improving effectiveness and efficiency ineach and every business, which all contribute toabsolute operating profit growth Continued transformation of our services business –shift towards a stronger focus on customer outcomewhich drives higher adoption and renewalsOperating profit 3–5%CAGR 6–9%CAGR 6.3bn 6.7–7bn20152017 8–9bn Expected 2016 hiring similar to 2015 to fuel ourinnovation engine2020 Targeting accelerated operating profit expansion in 2018 and beyond 2016 SAP SE Investor Relations. All rights reserved.Page21

AgendaFocus – SAP Digital Business ServicesAn introduction to SAPHelping customers win in the new digital economySAP’s long-term financial ambitionWhy invest in SAPAppendix 2016 SAP SE Investor Relations. All rights reserved.Page22

Summary – Why invest in SAPSAP’s innovation leadership is helpingcustomers win in the digital economySAP is outpacing the market in topline andbottom-line growth SAP runs the world’s mission-critical businessprocesses and is perfectly positioned at the top ofthe IT stack – close to the end user where thebusiness value is generated In addition, SAP has developed the most advancedin-memory platform available today: SAP HANA Based on SAP’s groundbreaking new architecture,SAP is in the early stages of a powerful multi-yearinnovation cycle with SAP S/4HANA as the digitalcore coupled with the most comprehensive,best-in-class cloud & network portfolio Only SAP offers customers choice of deploymentmodel (cloud, on premise or hybrid