SAP AG Q4 and FY 2003 Preliminary Results Release Frankfurt, January 22, 2004

1
SAP AG Q4 and FY 2003 Preliminary Results
ReleaseFrankfurt, January 22, 2004
2
Werner BrandtCFO, Member of the Executive
BoardSAP AG
3
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
  SAPs future financial results are discussed more
  fully in SAPs filings with the U.S. Securities
  and Exchange Commission (SEC), including SAPs
  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.

4
Agenda

• Full Year 2003 Financials

Fourth Quarter 2003 Financials
Balance Sheet Cash Flow
Headcount Increase
Outlook 2004
5
Agenda

• Currency Impacts on FY 2003 Financial Performance

6
Currency Impacts FY 2003
Exchange Rates weakened in 2003 (yoy)
2003 vs. 2002
-17
US
-9
Yen
-9
GBP
-6
CAD
Average change of currency for FY 2003 based on
monthly average exchange rates weighted on the
actual monthly total revenues
7
Currency Impacts FY 2003 on Growth Rates
Q1 2003
Q4 2003
Q3 2003
Q2 2003
FY 2003
License growth in Euro
-12
-3
0
-13
-6
-7
License growth at const. currency
-4
-5
7
3.5
1
Total Revenue growth in Euro
-8
-8
-3
-3
-5
-8
Total Revenue growth at const. currency
1
2
3
4
3
8
Currency Impacts FY 2003 on Volume
Actual2002
ChangeVolume
CurrencyEffect
Actual2003
189
7,413
-577
7,025
Total Revenue
3
-8
-5
-5,724
-226
-359
-5,139
Pro formaOperating Expensesexcl. SBCP/AC
-4
-6
-10
415
Pro forma Operating Income excl. SBCP/AC
-218
1,886
1,689
25
-13
12
9
Agenda

• Key Figures FY 2003

10
Key Figures Full Year 2003
FY 2002 millions
FY 2003 millions

License revenues
2,291
-6
2,147
1
Total revenues
7,413
-5
7,025
3
Operating income
336
1,626
6
1,730
- Margin as a of sales
25
22
3
Income before income taxes
1,783
1,108
61
- Margin as a of sales
25
15
10
Net income
1,080
509
112
- Margin as a of sales
15
7
8
3.48
1.63
112
Earnings per share (in )
percentage points
currency adjusted actuals 2003 converted
with the exchange rates of 2002
11
Key Figures Full Year 2003
FY 2002 millions
FY 2003 millions

EBITDA(2)
1,847
5
1,946
- Margin as a of sales
3
25
28
Pro forma operating income excl. stock-based
comp. and acquisition-related charges(1)
1,689
12
1,886
- Margin as a of sales
4
23
27
39
54
-15
Effective tax rate
Pro forma EPS excluding stock-based
compensation, acquisition-related charges, and
impairment-related charges(1)
24
3.84
3.08
percentage points
12
Agenda
Full Year 2003 Financials

• Fourth Quarter 2003 Financials

Balance Sheet Cash Flow
Headcount Increase
Outlook 2004
13
Group Sales by Revenue Type 4th Quarter 2003
Q4 2003 millions
Q4 2002 millions
Q4 2002 of revenue
Q4 2003 of revenue

currencyadjusted

Product
1,586
70
1
1,604
72
8
License
958
42
-3
931
42
3.5
Maintenance
628
28
7
673
30
14
667
29
-11
596
27
Service
-5
575
25
-10
520
24
-3
Consulting
92
4
3
Training
76
-17
-11
Other revenue
15
22
-32
1
1
-34
Total
2,215
2,275
-3
4
currency adjusted actuals 2003 converted
with the exchange rates of 2002
14
Key Figures 4th Quarter 2003
Q4 2002 millions
Q4 2003 millions

Total revenues
2,275
-3
2,215
4
Operating expense
-1,491
3
-1,536
24
na
92
thereof SBCE AC
Operating income
336
784
-13
679
- Margin as a of sales
31
34
-3
percentage points
currency adjusted actuals 2003 converted
with the exchange rates of 2002
15
Key Figures 4th Quarter 2003
Q4 2002 millions
Q4 2003 millions

958
-3
931
License revenues
3.5
Total revenues
2,275
-3
2,215
4
679
Operating income
784
-13
- Margin as a of sales
31
34
-3
Income before income taxes
700
790
-11
- Margin as a of sales
32
35
-3
Net income
423
474
-11
- Margin as a of sales
19
21
-2
Earnings per share (in )
1.36
1.52
-11
percentage points
currency adjusted actuals 2003 converted
with the exchange rates of 2002
16
Key Figures 4th Quarter 2003
Q4 2002 millions
Q4 2003 millions

EBITDA(2)
840
-12
742
- Margin as a of sales
-4
37
33
Pro forma operating income excl. stock-based
comp. and acquisition-related charges(1)
808
-5
771
- Margin as a of sales
-1
36
35
39
40
-1
Effective tax rate
Pro forma EPS excluding stock-based
compensation, acquisition-related charges, and
impairment-related charges(1)
-2
1.55
1.58
percentage points
17
Agenda

• Gross Margin Cost Analysis

18
Pro-forma Gross Margin Analysis 4th Quarter 2003
Q4 2002 millions
Q4 2003 millions

1,586
1
1,604
Product revenue Pro forma cost of product (excl.
SBC AC) Pro forma product gross margin in
-229
10
-252
86
84
-2
Service revenue Pro forma cost of service (excl.
SBC AC) Pro forma service gross margin in
667
-11
596
-492
-16
-415
30
4
26
Product / Service revenue Pro forma product /
service cost (excl. SBC AC) Pro forma gross
margin in
2,253
-2
2,200
-721
-7
-667
70
2
68
percentage points
19
Pro-forma Cost Analysis 4th Quarter 2003
Q4 2003 millions
Q4 2002 millions
In percentage points
yoy
-256
11
Pro forma Research Developm. as of sales
-283
11
2
13
-397
-406
-2
Pro forma Sales Marketing as of sales
18
0
18
-1
-94
-95
Pro forma General Admin. as of sales
4
0
4
na
13
Pro forma Other income/expenses as of sales
-4
na
na
na
Pro forma Total costs
-1,444
-1,465
-1
Total revenues
2,215
2,275
-3
All pro forma cost excluding stock-based
compensation and acquisition-related charges
20
Pro Forma Operating Cost Analysis
2002 millions
2003 millions
Currency
Volume
Q1 operating expense
-109
1,216
-95
1,420
Q2 operating expense
-112
1,250
-92
1,454
-91
Q3 operating expense
-63
1,229
1,383
54
Q4 operating expense
-77
1,444
1,467
Personnel continued hiring
(813 FTEs net in 2003)
Marketing investing for 2004
Travel increased
business activity
excl. stock-based compensation acquisition
related charges
21
Agenda
Full Year 2003 Financials
Fourth Quarter 2003 Financials

• Balance Sheet Cash Flow

Headcount Increase
Outlook 2004
22
Consolidated Balance Sheet as of Dec 31, 2003
Shareholders Equity Liabilities
Assets
Dec 31, 02
Dec 31, 02
Dec 31, 03
Dec 31, 03
Other liabilities
Other assets
318
692
490
758
Reserves, accrued liabilities
Liquid assets
2,103
1,239
1,549
1,562
Minority interest
59
56
305
Inventories/ Accounts receivable
Deferred income
362
2,242
2,277
Shareholders equity
2,872
3,712
Fixed assets
1,619
1,639
TOTAL
TOTAL
6,317
6,317
5,610
5,610
in millions
23
Balance Sheet Cash Flow Analysis
percentage points days
Dec 31, 02 FY 2002
Dec 31, 03 FY 2003
in mill.

-11
76
87
DSO
7
59
52
Equity ratio

1,687
-10
1,514
Operating cash flow CapEx Free cash
flow Free cash flow as a of revenue
-285
-24
-218
1,402
-8
1,296
19
-1
18
24
Agenda
Full Year 2003 Financials
Fourth Quarter 2003 Financials
Balance Sheet Cash Flow

• Headcount Increase

Outlook 2004
25
Worldwide Headcount as of Dec 31, 2003
12/2003
12/2002
09/2002
in FTE
seq. Q4/03
yoy Q4/03
Group
2
29,610
28,797
3
29,165
EMEA
2
19,834
19,235
3
19,505
Americas
0
6,056
6,311
-4
6,042
3
3,720
3,251
14
3,618
APA
RD
3
8,854
7,966
11
8,583
Service Support
1
12,533
12,753
-2
12,442
Sales Marketing
1
5,170
5,067
2
5,127
GA
1
3,053
3,011
0
3,013
Q2 2003
Q1 2003
Q3 2003
FY 2003
Q4 2003
net new hires
307
-143
204
813
445
26
Agenda
Full Year 2003 Financials
Fourth Quarter 2003 Financials
Balance Sheet Cash Flow
Headcount Increase

• Outlook 2004

27
Outlook 2004

• Focus in 2004 is on license revenue growth
• License revenues expected to increase around 10
• Pro forma operating margin expected to increase
  around 1 PP
• Pro forma EPS expected to be in a range of 4.20
  to 4.30
• Assumptions for 2004
• Average / exchange rate of 1.25
• Increased investments especially in Sales
  Marketing and RD
• Normalized tax rate around 37
• Expected economic rebound in the second half of
  2004
• Exchange rate impact on outlook
• At constant currency, license revenues to
  increase around 15
• At constant currency, pro forma margin to
  increase around 1.5 PP
• At constant currency, pro forma EPS to increase
  around 4.30 to 4.40

28
Léo ApothekerPresident Global Field Operations,
Member of the Executive BoardSAP AG
29
License Revenue by Region Full Year 2003

• in millions percent change percent constant
  currency change

Americas 627 0 19
of which Germany 500 3 3
of which U.S. 491 3 23
Total 2,147 million -6 1
APA 275 0 11
EMEA 1,245 -10 -9
of which Japan 139 -11 -2
currency adjusted actuals 2003 converted
with the exchange rates of 2002
30
Highlights 2003

• SAP full-year software licenses up 1 vs. peer
  group performance expected to be down around 19
• Strong second half finish in license revenues and
  deal volume growth
• First half -5 license revenues, 4 deal
  volume
• Second half 4 license revenues, 20 deal
  volume
• U.S.
• Impressive year-over-year improvement with full
  year software revenues 23 (USD growth), growth
  in profitability, higher customer satisfaction
  and stronger management team
• EMEA stabilized
• Germany after tough Q1, Germany delivered with
  full year software revenues 3
• Turnaround in UK

constant currencies
31
Highlights 2003

• High potential geographies showed outstanding
  growth
• China, India, Brazil
• SAP is now the market leader in Customer
  Relationship Management (CRM)
• Launched in March, 2003, mySAP ERP has been a
  fast selling solution among new and existing
  customers

32
Customer Wins - 4th Quarter 2003

• AMERICAS
• Ashland
• Graphic Packaging
• Raytheon
• Schwan Food
• Suncor
• Valero Energy

• EMEA
• Airbus
• Danisco
• Deutsche Bahn
• Deutsche Post
• Interbrew
• Rexam

• ASIA / PACIFIC
• Asian Airlines
• Fukujin
• Mitsui
• New China Life Insurance
• Sankyo
• Yamaha

33
2003 was a Year of Successful Adaptation

• SAP successfully adapted to the changing customer
  buying behaviour
• SAP successful in mitigating impact of aggressive
  discounting in market
• Value of maintenance well recognized by customers

• Smaller Deals
• Growth in mid-market results in smaller average
  deal size
• Average deal size down 23 year-over-year
• Customers reduce upfront commitments (e.g. shift
  to phased contracts)
• Deals gt 5 million represented 22 of order entry
  (2002 28)

• Higher Deal Volume Success
• Number of deals increased by
• 13 in 2003
• 21 in Q4 2003
• Number of deals in mid-market increased by
• 21 in 2003
• 30 in Q4 2003

34
Exploring New Markets Mid-Market Strategy

• Two channels are serving the mid-market
• Direct and indirect channels
• Partners such as American Express, HP, IBM, Dell,
  Accenture
• Our definition of Midmarket depends on regional
  conditions
• Understanding and addressing the needs of
  mid-market customers
• Cost-efficiency, short implementation time, low
  TCO, business agility
• We continue to build the Indirect Channel

• 2,500 customers
• 420 partners
• Solutions available in 25 countries

• 4,600 customers
• 300 partners
• 310 qualified solutions available

35
Strong Growth in the Mid-Market
Rolling 4 quarters of deals
Number of deals (base 100 Q4 2002)
125
120
115
110
105
100
95
90
85
80
Q4 02
Q1 03
Q2 03
Q3 03
Q4 03
36
Penetrating the Market with New Customers

• Increase in business with new customers based on
  order entry
• 26 in 2003, up 3 percentage points
  year-over-year
• 21 in Q4, up 5 percentage points year-over-year
• Increase in business with new customers in
  mid-market based on order entry
• 43 in 2003, up 3 percentage points
  year-over-year
• 38 in Q4, up 1 percentage point year-over-year
• SAP generates more business with new customers
  alone than any of its peer group competitors
  generates with both new and existing customers
  combined

Using quarterly closing exchange rates for
/Euro conversion and 26 of SAP order entry in
2003 was related to new customer business
37
mySAP CRM Momentum 2003
(rolling 4 quarters based on license revenues)
119
mySAP CRM as of Siebel
110
102
100
100
91
71
80
56
60
49
41
40
20
0
Q1 03
Q2 03
Q3 03
Q4 03
Q1 02
Q2 02
Q3 02
Q4 02

• SAP has become the market leader in CRM
• Winning in head-to-head deals
• Increasing win-backs and competitive replacements
• Success in large scale implementations
• Success with small to midsize customers

38
Henning KagermannChairman and CEO, SAP AG
39
2003 was a Challenging, but Successful Year

• Difficult environment throughout 2003
• For the 2nd year in a row IT markets declined
• First signs of a recovery only towards the end of
  the year
• SAP significantly exceeded its targets for 2003
• Pro forma EPS came in significantly above target
• Pro forma operating margin improved 4 PP vs. 1 PP
  target despite large investments in RD ( of
  RD employees up 888 FTEs in 2003and RD
  expenses increased 9 year-over-year)
• 27 pro forma operating margin highest level
  since 1997
• SAP gained momentum throughout 2003
• Software license growth year-over-year (currency
  adjusted)Q1 03 (-4), Q2 03 (-5), Q3 03 (7),
  Q4 03 (3)

40
Significant Market Share Gains

• SAPs share increased significantly
• Total market
• Peer group
• Region
• Product

41
SAP Outperformed the Market

• SAP (in US) versus Market - YoY Growth 02/03E

License Revenue
Total Revenue
Source SAP analysis, market analysis and
financial analyst estimates Currency Conversion
based on quarterly Euro-Fixings (Frankfurt am
Main)Rest of Market defined as a subset of
approximately 30 software vendors
42
Strongest Global Peer Group Share Gains in SAPs
History

• (rolling 4 quarters based on license revenues)

70
Total License Revenue - Relative Shares
59
58
60
SAP AG
56
54
51
50
48
46
44
43
41
40
40
40
30
22
21
21
20
20
20
18
18
18
17
17
17
17
17
17
19
15
15
18
Oracle
16
15
14
14
14
16
16
16
16
16
15
15
13
PSFTJDEC
14
10
13
12
12
Siebel
11
5
4
4
4
3
3
2
2
2
2
2
2
I2
0
Q1 2003- Q4 2003E
Q1 2002- Q4 2002
Q2 2002- Q1 2003
Q3 2002- Q2 2003
Q4 2002- Q3 2003
Q2 2000- Q1 2001
Q3 2000- Q2 2001
Q4 2000- Q3 2001
Q1 2001- Q4 2001
Q2 2001- Q1 2002
Q4 2001- Q3 2002
Q3 2001- Q2 2002
Source SAP Analysis based on Company Data and
Financial Analysts Estimates Forecast by
Company Data and Financial Analysts (I2,PSFT
JDEC,SEBL) and SAP internal estimates Fiscal
year is not calendar year - Comparison based on
most recent quarter (e.g. SAP Q1 vs. Oracle Q3)
43
SAP Outperformed the Peer Group
Q12003
Q22003
Q32003
Q42003
License sales (in )
SAP in
1,176
505
384
493
Oracle apps
137
107
140
246
PeopleSoft
125
152
160
N/A
Siebel
112
110
110
150
growth rates (y/y)
SAP in
9
0
17
18
Oracle apps
- 5
0
27
- 4
PeopleSoft
- 33
- 19
N/A
- 18
Siebel
- 54
- 35
- 5
- 13
SAP license revenues in based on quarter end
exchange rates closest respective quarter and
new license applications only including JD
Edwards
44
U.S. Relative Peer Group Share
(rolling 4 quarters based on license revenues)
40
40
36
30
32
30
29
28
27
27
27
26
26
26
26
26
29
26
26
28
26
24
24
24
26
20
23
23
23
25
23
25
24
24
23
20
22
19
21
21
18
18
21
21
19
19
19
18
17
17
15
10
4
4
4
4
4
4
4
3
3
3
3
3
0
Q4 2002- Q3 2003
Q1 2003- Q4 2003E
Q3 2000- Q2 2001
Q4 2000- Q3 2001
Q1 2001- Q4 2001
Q4 2001- Q3 2002
Q1 2002- Q4 2002
Q2 2002- Q1 2003
Q3 2002- Q2 2003
Q2 2000- Q1 2001
Q2 2001- Q1 2002
Q3 2001- Q2 2002
SAP AG
Siebel
Oracle
I2
PSFTJDEC
Source SAP Analysis based on Company Data and
Financial Analysts Estimates Forecast by
Financial Analysts (I2,PSFTJDEC,SEBL,SAP)
Fiscal year is not calendar year - Comparison
based on most recent quarter (e.g. SAP Q1 vs.
Oracle Q3)
45
APA Relative Peer Group Share
(rolling 4 quarters based on license revenues)
70
69
60
66
64
64
61
50
58
57
57
57
56
56
55
40
30
20
20
19
19
18
18
18
18
18
18
17
16
16
13
13
13
12
12
11
11
10
9
9
13
8
8
8
8
7
10
10
9
9
9
7
8
7
6
2
2
1
1
1
5
5
5
4
4
2
3
0
Q1 2003- Q4 2003E
Q4 2001- Q3 2002
Q1 2002- Q4 2002
Q2 2002- Q1 2003
Q3 2002- Q2 2003
Q4 2002- Q3 2003
Q3 2000- Q2 2001
Q4 2000- Q3 2001
Q1 2001- Q4 2001
Q2 2001- Q1 2002
Q3 2001- Q2 2002
Q2 2000- Q1 2001
SAP AG
Siebel
Oracle
I2
PSFTJDEC
Source SAP Analysis based on Company Data and
Financial Analysts Estimates Forecast by
Company Data and Financial Analysts (I2,PSFT
JDEC,SEBL) and SAP internal estimates Fiscal
year is not calendar year - Comparison based on
most recent quarter (e.g. SAP Q1 vs. Oracle Q3)
46
EMEA Relative Peer Group Share
(rolling 4 quarters based on license revenues)
80
75
74
74
73
72
69
68
70
66
63
62
60
60
60
50
40
30
20
17
17
16
16
14
13
12
12
11
11
11
11
11
11
10
10
11
10
10
10
10
10
7
7
7
7
7
7
7
8
7
9
6
6
8
5
2
2
5
1
1
1
1
1
5
5
4
1
3
0
Q1 2003- Q4 2003E
Q4 2001- Q3 2002
Q1 2002- Q4 2002
Q2 2002- Q1 2003
Q3 2002- Q2 2003
Q4 2002- Q3 2003
Q3 2000- Q2 2001
Q4 2000- Q3 2001
Q1 2001- Q4 2001
Q2 2001- Q1 2002
Q3 2001- Q2 2002
Q2 2000- Q1 2001
SAP AG
Siebel
Oracle
I2
PSFTJDEC
Source SAP Analysis based on Company Data and
Financial Analysts Estimates Forecast by
Company Data and Financial Analysts (I2,PSFT
JDEC,SEBL) and SAP internal estimates Fiscal
year is not calendar year - Comparison based on
most recent quarter (e.g. SAP Q1 vs. Oracle Q3)
47
2003 Preparing SAP for Growth

• Customer satisfaction increased again in 2003
• Innovations extend the addressable market
• Wall Street Journal European Innovation Award for
  RFID technology
• Gartner SAP is the strongest visionary in
  Enterprise Services Architecture
• Successful launch of SAP NetWeaver and Enterprise
  Services Architecture Roadmap
• New releases of mySAP CRM, mySAP SCM and mySAP
  SRM using the concept of Enterprise Services
  Architecture
• First customers using SAP NetWeaver achieving
  significant reductions in TCO

48
NetWeaver Successfully Launched in 2003

• 281 ROI 43 TCO Reduction

586 ROI
308 ROI 25 TCO Reduction
453 ROI
362 ROI
Source IDC Case Studies ROI in 5 yrs.
December 2003.
49
2004 Looking Ahead

• Customer spending environment has improved
• U.S. economy is already improving EMEA will
  follow U.S. later in 2004
• Customers are ready to invest stronger sales
  pipeline
• SAPs priority in 2004 is software license growth
• Software license revenues expected to increase by
  around 10 in 2004
• SAP continues to focus on increasing the number
  and frequency of deals
• Further efficiency improvements in 2004 at the
  same time SAP will accelerate investments
• Sales force (higher deal volume, industry focus,
  customer segmentation)
• Marketing (lead generation, mid-market)
• Research Development SAP NetWeaver, Enterprise
  Services Architecture, mySAP ERP

50
2004 Go-to-Market

• Leverage four key differentiators
• SAP NetWeaver
• mySAP ERP
• mySAP CRM
• Industry business scenarios
• Value focused customer approach
• Innovative customer relationships
• Focus on mid-market
• Increased focus on lead generation
• Investment in sales force

51
2004 Investing in Future Growth

• SAP completed its largest realignment project in
  Research Development
• New Business Solution Groups to strengthen the
  interaction between SAPs development teams and
  its global field organization
• New development organization APA (Application
  Platform and Architecture Group) to implement the
  concept of the Enterprise Services Architecture
  (ESA) throughout the organization and solution
  portfolio
• Future focus
• SAP NetWeaver in a Box
• Project Vienna as front-runner for ESA and
  platform strategy (approximately 600 FTEs)
• Deliver reusable parts for all mySAP Business
  Suite solutions
• Deliver architectural guidelines for ESA adoption
• Enable SAP to deliver new solutions faster

52
SAP is Well Prepared for 2004

• More closely aligned development and field
  organization
• 2nd half 2003 clear signs companies were ready
  to invest in software
• This trend should materialize in 2004
• Our sales, marketing and RD efforts will be
  focused on thegrowth opportunities we see for
  2004

53
SAPs Unmatched Product Portfolio
Flexible solutions
Industry-ready solutions backed by the best
network of partners
Business-ready platform based on open standards
for lower TCO
54
SAP AG Q4 and FY 2003 Preliminary Results
ReleaseFrankfurt, January 22, 2004
55
Appendix
APPENDIX
56
Currency Impacts FY 2003 on Volume
FY 2003 millions
Curr. Impact in
Curr. Impact millions

Constant currency
yoy
License revenue
2,147
-7
1
-6
-165
7,025
-5
3
-8
-577
Total revenue
Pro forma Operating Expense excl. SBC AC
-5,139
-10
-4
6
359
Pro forma Operating Income excl. SBC AC
1,886
12
25
-13
-218
percentage points
57
Pro-forma Cost Analysis3 4th Quarter 2003
Q4 2003 millions
Q4 2002 millions
yoy incl SBC/AC
yoy excl. SBC/AC
incl SBC/AC
incl SBC/AC
excl. SBC/AC
excl. SBC/AC
-235
13
10
-229
Cost of Product
-265
-252
-437
-415
-495
-12
-16
-492
Cost of Service
-262
19
11
-256
Research Developm.
-313
-283
-418
-397
-409
2
-2
-406
Sales Marketing
-4
-99
-103
-1
-95
-94
General Admin.
-131
-131
13
Other Income/Expenses
13
-4
-4
Total Costs
-1,536
-1,444
-1,491
-1,465
3
-1
In percentage points
58
SAP Outperformed the Peer Group
Q1 2003 millions
Q4 2003 millions
Q3 2003 millions
Q2 2003 millions
License revenue (Euro)
352
931
433
431
License Revenue (USD)
384
1,176
505
493
Month-end exchange rate (/)
1.0895
1.2630
1.1652
1.1427
59
License Revenue by Region 4th Quarter 2003

• in millions percent change percent constant
  currency change

APA 102 -14 -8
of which Japan 51 -28 -23
of which Germany 224 17 17
Americas 251 -7 9
Total 931 million -3 3
EMEA 578 2 3
of which U.S. 194 -3 16
currency adjusted actuals 2003 converted
with the exchange rates of 2002
60
Group Sales by Region 4th Quarter 2003

• in millions percent change percent constant
  currency change

APA 246 -7 -1
of which Japan 130 -16 -11
of which Germany 550 4 4
Americas 652 -10 6
Total 2,215 million -3 4
EMEA 1,317 2 4
of which U.S. 500 -10 7
currency adjusted actuals 2003 converted
with the exchange rates of 2002
61
Group Sales by Region Full Year 2003

• in millions percent change percent constant
  currency change

APA 837 -3 7
of which Japan 438 -10 0
Americas 2,198 -12 6
of which Germany 1,701 -1 -1
Total 7,025 million -5 3
EMEA 3,990 -2 0
of which U.S. 1,721 -12 5
currency adjusted actuals 2003 converted
with the exchange rates of 2002
62
License Revenue Analysis by Solution Q4 2003

• percent of license revenues change since
  previous year

mySAP Financials / mySAP HR 38 -2
mySAP SCM 22 2
Total 931 million
mySAP CRM 21 0
mySAP BI / mySAP Enterprise Portal / mySAP SCM /
Marketplaces 11 -1
mySAP PLM 8 1
in percentage points
63
License Revenue Analysis by Solution FY 2003
Q4 2003 millions
Q1 2003 millions
Q2 2003 millions
Q3 2003 millions
Q4 2003
YoY in
mySAP CRM
192
74
-6
85
89
mySAP SCM
206
83
11
86
102
mySAP PLM
71
25
4
33
27
mySAP BI / mySAP Enterprise Portal / mySAP SRM /
Marketplaces
108
52
-2
49
64
mySAP Financials / mySAP HR
354
118
-9
178
151
64
License Revenue Analysis by Industry FY 2003

• percent of license revenues change compared to
  FY 2002

Service Industries 24 -1
Discrete Industries 23 2
Total 2,147 million
Process Industries 19 -1
Consumer Industries 17 -1
Financial Services 8 0
Public Services 9 1
in percentage points
65
License Revenue Analysis by Solution
rolling last 4 quarters as a of license
revenues
40
39
39
39
38
38
38
37
36
23
22
22
22
21
21
21
21
21
20
19
18
17
21
21
21
20
20
16
15
14
13
13
13
12
12
11
8
7
7
7
7
7
7
7
7
Q1 2002- Q4 2002
Q2 2002- Q1 2003
Q3 2002- Q2 2003
Q4 2002- Q3 2003
Q1 2002- Q4 2003
Q1 2001- Q4 2001
Q2 2001- Q1 2002
Q3 2001- Q2 2002
Q4 2001- Q3 2002
66
License Revenue Analysis by Industry
rolling last 4 quarters as a of license
revenues
27
26
26
26
25
25
25
24
24
24
24
23
22
22
22
21
21
21
21
20
20
22
19
19
19
19
20
19
19
19
19
19
19
17
15
15
9
9
9
8
8
8
8
7
7
8
8
8
7
7
7
7
7
7
Q1 2001- Q4 2001
Q2 2001- Q1 2002
Q1 2002- Q4 2002
Q2 2002- Q1 2003
Q3 2002- Q2 2003
Q4 2002- Q3 2003
Q1 2003- Q4 2003
Q3 2001- Q2 2002
Q4 2001- Q3 2002
67
Key Figures 4th Quarter 2003 Analysis Part I
Q4 2002 millions
Q4 2003 millions

Operating income as reported under US GAAP
784
-13
679
Depreciation amortization
56
13
63
EBITDA(2)
840
-12
742
Operating income as reported under US GAAP
784
-13
679
LTI 2000/STAR
16
419
83
Settlement of stock-based compensation prog.
2
-50
1
Stock-based compensation
18
367
84
Acquisition-related charges
6
33
8
Pro forma operating income excl. stock-based
compensation and acquisition-related charges(1)
808
-5
771
0
Finance income
-3
-3
-100
-5
thereof impairment-related charges
0
68
Key Figures 4th Quarter 2003 Analysis Part II
Q4 2002 millons
Q4 2003 millions

-11
474
Net income as reported under US GAAP
423
350
12
Stock-based compensation, net of tax
54
0
4
Acquisition-related charges, net of tax
4
-100
3
Impairment-related charges, net of tax
0
Pro forma net income excluding stock-based
compensation, acquisition-related charges,
andimpairment-related charges(1)
493
-2
481
-10
1.52
Earnings per share (in )as reported under US GAAP
1.36
350
0.04
Stock-based compensation
0.18
0
0.01
Acquisition-related charges
0.01
-100
0.01
Impairment-related charges
0.00
Pro forma EPS excluding stock-based
compensation, acquisition-related charges,
andimpairment-related charges(1)
1.58
-2
1.55
69
Pro Forma Information
(1) SAP has provided information in 2003, 2002
and 2001 using pro forma measures on a
consolidated basis and released guidance based on
these measures for 2004 and 2003. Management
believes that those pro forma measures provide
supplemental meaningful information to the
investor to fully assess our financial
performance of the core operations. Management
excludes stock-based compensation expenses
because we have no direct influence over the
actual expense of these awards once we enter into
stock-based compensation plans. Eliminated
expenses in the pro forma measures are defined as
follows - Acquisition-related charges include
amortization of intangible assets acquired in
acquisitions  - Impairment-related charges
include other than temporary impairment
charges on minority equity investments.  -
Stock-based compensation includes expenses for
stock-based compensation as defined under US
GAAP (STAR and LTI 2000) as well as expenses
related to the settlement of stock-based
compensation plans in the context of mergers
and acquisitions. However these measures should
be considered in addition to, and not as a
substitute for, or superior to, operating income,
cash flows, or other measures of financial
performance prepared in accordance with generally
accepted accounting principles. The pro forma
measures used by us may be different from pro
forma measures used by other companies.
70
Pro Forma Information
(2) Management believes that EBITDA and free
cash flow are widely accepted supplemental
measures of evaluating operating performance and
liquidity among companies. However these measures
should be considered in addition to, and not as a
substitute for, or superior to, operating income,
cash flows, or other measures of financial
performance prepared in accordance with generally
accepted accounting principles.
71
Pro Forma Information
(3) SAP has provided information in 2003 for pro
forma measures on a consolidated basis especially
focusing on operational expenses. Management
believes that those pro forma measures provide
supplemental meaningful information to the
investor to fully assess our financial
performance of the core operations. Management
excludes stock-based compensation expenses
because we have no direct influence over the
actual expense of these awards once we enter into
stock-based compensation plans. Eliminated
expenses in the pro forma measures are defined as
follows - Acquisition-related charges include
amortization of intangible assets acquired in
acquisitions  - Stock-based compensation includes
expenses for stock-based compensation as
defined under US GAAP (STAR and LTI 2000) as well
as expenses related to the settlement of
stock-based compensation plans in the context of
mergers and acquisitions. However these
measures should be considered in addition to, and
not as a substitute for, or superior to,
operating income, cash flows, or other measures
of financial performance prepared in accordance
with generally accepted accounting principles.
The pro forma measures used by us may be
different from pro forma measures used by other
companies.