DRIVING CUSTOMER SUCCESS

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DRIVING CUSTOMER SUCCESS
Schroder Salomon Smith BarneyInvestor
ConferenceNew York, NY May 22, 2002 Nils
HerzbergSVP, Industry Business Sector
ManufacturingSAP AG
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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 Companys future financial results are
  discussed more fully in the Companys filings
  with the U.S. Securities and Exchange Commission
  (the SEC), including the Companys Annual
  Report on Form 20-F for 2001 filed with the SEC
  on March 28, 2002. Readers are cautioned not to
  place undue reliance on these forward-looking
  statements, which speak only as of their dates.

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Todays Customer Requirements

• All Customers Want
• Quick ROI
• Reduced Cost of Ownership
• Protection of existing IT investments
• Lower switching costs
• Many Customers Want
• Tightly integrated targeted solutions
• Complete end-to-end solutions
• Guaranteed mission readiness

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The Cost of Integration Customer Reality

• How to capitalize on existing IT investments ?
  

ERP legacy 15 systems
Challenge Cost of Integration
SAP R/3 30 systems, Versions 3.1I - 4.6B

• 15,000 interfaces
• Development cost 75,000 USD / interface
• Costs of ownership 10,000 USD / year /
  interface
• Overall
• 150 Mio. USD / year

ERP non-SAP 25 systems, different versions
E-Procurement 10 units
SAP MarketsEnterprise Buyer Professional Edition
Technical systems
e-Sales
Trading
Collaborative Engineering
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mySAP Technology Provides the Infrastructure ...
... to integrate several applications from
different vendors to form an open but consistent
e-business platform
Portal Infrastructure

• Infra-structureServices
• Security
• Global Standards
• IT Land-scape Mgmt.

SAP R/3 Enterprise
Partner System
mySAP CRM
...
mySAP SCM
Web Application Server
Legacy / Third Party
Exchange Infrastructure
mySAP Technology
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Improve Bottom Line - Adaptive Supply Chain
Network
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Manage Change - Role-Based Organizations
General MotorsIt is critical to have a portal
like this to gain efficiency in both our internal
processes as well as our processes with our
customers.

• Solution
• Review the content of SAPs Role Library (Best
  Practices for mySAP.com)
• Adapt to corporate objectives (mySAP Enterprise
  Portals)
• Build role-based organization (mySAP HR)
• Benefits
• Applies directly
• Accelerated business transformation
• Manage-by-exception
• Personal productivity (10-50)

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SAP and our Customers Building Partnerships
CEL

• Customer Segmentation
• Different offering for different needs
• Customer EngagementLifecycle
• Creating value across the entire lifecycle
• mySAP.com
• Combining openness and flexibility with
  integration
• Partner Value Net
• Unique ecosystem
• SAP Field Operations
• Solution portfolio mgmt.

Corporate Governance
Partner Value Net
Service Infrastructure
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SAP Milestones over 30 Years
Smart BusinessSolutions mySAP Technology
7,341 mill. Revenue 29,000Employees
18,000 Customersin 120 Countries
One-Step Business
6,265 mill. Revenue 25,000Employees 1
5,000 Customersin 120 Countries
Client/Server
424 mill. Revenue 3,200Employees 2,800
Customers in 35 Countries
R/2
Mainframe
5.1 mill. Revenue 60Employees 50 Customersin
2 Countries
R/1
0.3 mill. Revenue 9 Employees
1999/2000
1972
1979
. . . . .
1992
2002
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Growth Drivers 2002 and Beyond

• 2002 is expected to be another challenging year,
  software sales trends continue to be unsettled in
  a tough economic environment
• 2002 sales to be expected up by around 15
• 2002 operating margin excl. stock based
  compensation and TopTier acquisition cost to be
  expected up at least 100 basis points (2000 20)
• Operating margin excl. stock based compensation
  and TopTier acquisition cost mid-term target of
  25
• License revenue growth drivers CRM, SCM,
  Technology ERP
• Migration path to mySAP.com
• Currently 25 of global customers run mySAP.com
• 15 of R/3 customers have migrated to mySAP.com
• By 2005 80-90 migration to mySAP.com

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DRIVING CUSTOMER SUCCESS
Schroder Salomon Smith BarneyInvestor
ConferenceNew York, NY May 22, 2002 Nils
HerzbergSVP, Industry Business Sector
ManufacturingSAP AG