SAP Investor Symposium London, October 21st, 2003

1
SAP InvestorSymposiumLondon, October 21st, 2003
2
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 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.

3
Agenda
100 pm 2.30 pm Welcome Stefan Gruber, Head
of Investor Relations, SAP AG Financial Review
2003 Q3 and Nine Months Results Werner Brandt,
CFO and Member of the Executive Board, SAP
AG Global Field Operations Léo
Apotheker President Global Field Operations
Member of the Executive Board, SAP AG Strategy
Update Henning Kagermann CEO and Chairman, SAP
AG Executive Q A Henning Kagermann, Léo
Apotheker, andWerner Brandt
4
Agenda
300 430 pm SAPs Vertical Strategy Peter
Kirschbauer Head of Business Solutions Group
Services, Member Extended Management Board, SAP
AG SAP for Banking Thomas Balgheim, SVP
Financial Services Sector, SAP AG Customer
Presentation Ludger Doerr Director Strategic
Projects, Deutsche Postbank AG Q A Peter
Kirschbauer, Thomas Balgheim, and Ludger Doerr
5
Werner Brandt
6
Highlights First Nine Months 2003

• 9M 2003 total revenues were up 2 at constant
  currencies
• 9M 2003 license revenues were down 1 at constant
  currencies
• 9M 2003 operating income increased 25 to 1.1bn
• 9M 2003 pro-forma operating income increased 27
  to 1.1bn representing a pro-forma operating
  margin of 23
• 9M 2003 EPS increased from 0.11 to 2.11
• 9M 2003 pro-forma EPS increased 51 to 2.29
• DSO improved 9 days to 78 in 2003
• Free cash flow increased 8 to 899 mill.
• Cash position of 1.8bn

7
Agenda

• 3rd Quarter 2003 Financials

First Nine Month 2003 Financials
Outlook 2003
8
Key Figures 3rd Quarter 2003
Q3 2002 millions
Q3 2003 millions

435
0
433
License revenues
7
Total revenues
1,702
-3
1,652
3
Operating income
336
336
23
413
- Margin as a of sales
25
20
5
Income before income taxes
425
298
43
- Margin as a of sales
26
18
8
Net income
252
202
25
- Margin as a of sales
15
12
3
Earnings per share (in )
0.81
0.65
25
percentage points
currency adjusted actuals 2003 converted
with the exchange rates of 2002
9
Key Figures 3rd Quarter 2003
Q3 2002 millions
Q3 2003 millions

EBITDA(2)
390
19
464
- Margin as a of sales
5
23
28
Pro forma Operating income excl. stock-based
comp. and acquisition-related charges(1)
319
33
423
- Margin as a of sales
7
19
26
40
34
6
Effective tax rate
Pro forma EPS excluding stock-based
compensation, acquisition-related charges, and
impairment-related charges(1)
26
0.84
0.66
percentage points
10
Group Sales by Revenue Type 3rd Quarter 2003
Q3 2003 millions
Q3 2002 millions
Q3 2002 of revenue
Q3 2003 of revenue

currencyadjusted

Product
1,038
61
5
1,088
66
12
License
435
26
0
433
26
7
Maintenance
603
35
9
655
40
15
642
38
-14
550
33
Service
-9
545
32
-12
479
29
-7
Consulting
97
6
4
Training
71
-27
-22
Other revenue
14
22
-36
1
1
-30
Total
1,652
1,702
-3
3
currency adjusted actuals 2003 converted
with the exchange rates of 2002
11
Gross Margin Analysis 3rd Quarter 2003
Q3 2002 millions
Q3 2003 millions

1,038
5
1,088
Product revenue Cost of product Product gross
margin in
-195
1
-197
81
82
1
Service revenue Cost of service Service gross
margin in
642
-14
550
-476
-14
-411
25
-1
26
1,680
-2
1,638
Product / Service revenue Product / Service
cost Gross margin in
-671
-9
-608
63
3
60
in percentage points
excl. stock-based compensation acquisition
related charges
12
Pro-forma Operating Expense Analysis
2002 millions
2003 millions
03/02 in
Currency
Volume
Q1 operating expense
-109
1,216
-95
1,420
-14
Q2 operating expense
-112
1,250
-92
1,454
-14
-91
Q3 operating expense
-63
1,229
1,383
-11
3rd Party replacements of
3rd party services
Marketing continued careful
spending
Royalty Payments depending on license mix
royalty payment
Other Restructuring
charge Q3 2002
Personnel continued hiring
excl. stock-based compensation acquisition
related charges
13
Cost Analysis 3rd Quarter 2003
Q3 2003 millions
Q3 2002 millions
yoy
-201
8
Research Developm. as of sales
-218
12
1
13
-327
-386
-15
Sales Marketing as of sales
20
-3
23
-6
-83
-89
General Admin. as of sales
5
0
5
na
-38
Other income/expenses as of sales
7
na
2
na
Total costs
-1,229
-1,383
-11
Total costs incl. SBC AC
-1,239
-1,366
-9
Total revenues
1,652
1,702
-3
In percentage points
excl. stock-based compensation acquisition
related charges
14
Worldwide Headcount as of Sep 30, 2003
09/2003
12/2002
09/2002
06/2002
in FTE
seq. Q3/03
yoy Q3/03
Group
1
29,165
28,797
1
28,909
28,961
EMEA
1
19,505
19,235
1
19,306
19,379
Americas
-1
6,042
6,311
-5
6,390
6,097
4
3,618
3,251
13
3,213
3,485
APA
RD
2
8,583
7,966
8
7,954
8,391
Service Support
0
12,442
12,753
-3
12,824
12,473
Sales Marketing
0
5,127
5,067
0
5,103
5,108
GA
1
3,013
3,011
0
3,028
2,989
Q2 2003
Q1 2003
Q3 2003
net new hires
307
-143
204
15
Agenda
3rd Quarter 2003 Financials

• First Nine Month 2003 Financials

Outlook 2003
16
Key Figures First Nine Month 2003
9M 2002 millions
9M 2003 millions

License revenues
1,333
-9
1,216
-1
Total revenues
5,138
-6
4,810
2
Operating income
336
842
25
1,051
- Margin as a of sales
22
16
6
Income before income taxes
1,083
318
241
- Margin as a of sales
23
6
17
Net income
657
35
1777
- Margin as a of sales
14
1
13
2.11
0.11
1777
Earnings per share (in )
percentage points
currency adjusted actuals 2003 converted
with the exchange rates of 2002
17
Key Figures First Nine Month 2003
9M 2002 millions
9M 2003 millions

EBITDA(2)
1,007
20
1,204
- Margin as a of sales
5
20
25
Pro forma operating income excl. stock-based
comp. and acquisition-related charges(1)
881
27
1,115
- Margin as a of sales
6
17
23
39
90
na
Effective tax rate
Pro forma EPS excluding stock-based
compensation, acquisition-related charges, and
impairment-related charges(1)
51
2.29
1.50
percentage points
18
Consolidated Balance Sheet as of Sep 30, 2003
Shareholders Equity Liabilities
Assets
Dec 31, 02
Dec 31, 02
Sep 30, 03
Sep 30, 03
Other liabilities
Other assets
397
561
490
758
Reserves, accrued liabilities
Liquid assets
1,815
1,239
1,269
1,562
56
Minority interest
56
Inventories/ Accounts receivable
548
362
Deferred income
2,242
1,874
Shareholders equity
2,872
3,248
Fixed assets
1,596
1,639
TOTAL
TOTAL
5,682
5,682
5,610
5,610
in millions
19
Deferred Income Analysis as of Sep, 30 2003
Sep 30, 02
Sep 30, 03
Dec 31, 02
in mill.
09/03 vs. 09/02 in
-10
548
609
Deferred income
362
Year-over-year change
Periodic maintenance currency adjusted
Non-standard maintenance
Future functionality
Other
20
Balance Sheet Cash Flow Analysis
percentage points days
Dec 31, 02 9M 2002
Sep 30, 03 9M 2003
in mill.

-9
78
87
DSO

1,032
1
1,041
Operating Cash Flow CapEx Free Cash
Flow Free Cash Flow as a of Revenue
-203
-30
-142
829
8
899
16
3
19
21
Agenda
3rd Quarter 2003 Financials
First Nine Month 2003 Financials

• Outlook 2003

22
Outlook 2003

• The Company has increased its target for pro
  forma operating margin, excluding stock-based
  compensation and acquisition-related charges.
  Previously, the Company expected its 2003 pro
  forma operating margin to be between 1 and 1.5
  percentage points higher than the level achieved
  in 2002. The Company now expects its 2003 pro
  forma operating margin to increase by
  approximately 2 percentage points compared to
  2002. As a result of the expected improvement in
  the pro forma operating margin, SAP expects pro
  forma earnings per share for 2003, excluding
  stock-based compensation, acquisition-related
  charges and impairment-related charges, to be in
  the higher end of the range of its previously
  issued outlook of 3.45 per share to 3.60 per
  share.

23
Investing Now for the Future

• Continued hiring in RD
• Investments in revenue generating areas
• Customer related 3rd party services

24
Léo Apotheker
25
Key Achievements First Nine Months 2003

• 9M 2003 total revenues up 2 at constant
  currencies
• Strong performance in America and APA
• U.S. and Japan 9M 2003 license revenues at
  constant currencies up29 and 16, respectively
• SAP is the 1 enterprise software provider in
  the U.S., gaining significant market share
  quarter over quarter
• SAP extended its global market share to 57 as of
  September 2003
• SAP matched its largest CRM competitor in market
  share for the first time
• Success in emerging markets (China, Russia,
  India)
• Maintained strong position in Germany despite
  weak economic environment
• Continued growth in SMB partner channel

26
SAP is still gaining market share
Total License Revenue - Relative Market Shares
(rolling 4 quarters based on License Revenues)
60
57
55
54
51
50
48
46
44
43
41
40
40
39
30
22
22
21
20
20
20
19
18
18
18
18
17
17
17
17
17
16
16
16
15
17
14
16
16
16
16
14
15
15
15
14
14
12
12
10
5
4
4
4
3
3
2
2
2
2
2
0
Q1 2002- Q4 2002
Q2 2002- Q1 2003
Q3 2002- Q2 2003E
Q4 2002- Q3 2003E
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
SAP AG
Siebel
Oracle
I2
PSFTJDEC
Source CMI Analysis based on Company Data and
Financial Analysts Estimates Forecast by
Company Data, Financial Analysts (I2,
PSFTJDEC,SEBL) Fiscal year is not calendar
year - Comparison based on most recent quarter
(e.g. SAP Q1 vs. Oracle Q3)
27
US Relative Market Shares
(rolling 4 quarters based on license revenues)
40
35
31
30
30
28
27
27
27
27
29
29
29
26
26
26
26
26
26
25
26
24
26
24
23
23
25
23
24
24
24
21
23
20
22
21
21
20
21
19
18
17
19
18
18
17
17
10
4
4
4
4
4
4
4
4
4
3
3
0
Q4 2002- Q3 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 2003E
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
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)
28
License Revenue by Region 3rd Quarter 2003
License Revenue Q3 2003 433 Mio. 0 7
Americas 176 m25 42
of which US 140 m35 54
EMEA 201 m-17 -16
APA 56 m 6 15
of which Germany 93 m0 0
of which Japan 28 m-22 -17
y-o-y growth currency adjusted
actuals 2003 converted with the exchange rates of
2002
29
Group Sales by Region 3rd Quarter 2003
Total Revenue Q3 2003 1,652 mill. -3 3
Americas 572 m -2 11
of which US 449 m-3 11
EMEA 877 m-4 -3
APA 203 m 0 9
of which Germany 396 m-4 -4
of which Japan 106 m-14 -4
y-o-y growth currency adjusted
actuals 2003 converted with the exchange rates of
2002
30
License Revenue by Region First Nine Months 2003
License Revenue 9M 2003 1,216 mill. -9 -1
Americas 376 m5 26
of which US 297 m8 29
EMEA 667 m-19 -18
APA 173 m 11 25
of which Germany 276 m-6 -6
of which Japan 88 m4 16
y-o-y growth currency adjusted
actuals 2003 converted with the exchange rates of
2002
31
Group Sales by Region First Nine Months 2003
Total Revenue 9M 2003 4,810 mill. -6 2
Americas 1,546 m -12 6
of which US 1,221 m-13 5
EMEA 2,673 m-4 -2
APA 591 m -1 11
of which Germany 1,151 m-3 -3
of which Japan 308 m-7 5
y-o-y growth currency adjusted
actuals 2003 converted with the exchange rates of
2002
32
Market Environment

• The market environment is still difficult and
  uncertain
• Persistent, extraordinary pricing approaches from
  our peers
• Customers continue to buy in increments and
  continue to focus on ROI and lower TCO
• Customers look for a reliable strategic software
  partner
• Average deal sizes continue to decline each
  quarter, year-over-year
• In Q3 2003 the number of deals increased 16
  year-over-year, with licenses up only 7 at
  constant currencies
• More global leaders turn to SAP for strategic
  partnerships (e.g. Accenture in Banking, SMB
  channel partners, SAP NetWeaver, xApps)

33
Customer Wins in Q3 2003

• AMERICAS
• Brookshire Grocery
• IDEXX Laboratories
• Medtronic
• Tesoro Petroleum
• The Washington Post

• EMEA
• Arla Foods Amba
• Czech Ministry of Agriculture
• Gühring
• Linde Gas
• Portugal Telecom

• ASIA / PACIFIC
• Daiichi Pharmaceutical
• Japan Tobacco
• Hyundai Motor Company
• Olympus Korea
• Shanghai Secco Petrochemicals

34
Strategic Wins Q3 2003

• Overall deal metrics are not expected to change
  significantly, but there were some more strategic
  deals and an increase in the number of
  replacement deals
• Strategic deals
• Tyson Foods
• Coca Cola Enterprises
• Competitive replacements
• Medtronic

35
Highlights Q3 2003

• Increasing momentum with SAP NetWeaver
• More than 7,000 developers attended SAP TechEd in
  Las Vegas and Baselin September
• Powered by SAP NetWeaver Initiative launched
• More than 200 partners are already participating
  in the NetWeaver partner program
• SAP Master Data Management (MDM) was launched
• SAP and Accenture signed strategic agreement
• Both companies will jointly develop and deliver
  IT solutions for banks and insurance companies
  worldwide
• Accenture and SAP will also work together to
  integrate their respective software solutions
  leveraging SAP NetWeaver

36
SCM CRM Relative Market Shares
License Revenue breakdown by solution (rolling 4
quarters based on License Revenues)
400
354
319
310
300
252
226
203
200
171
152
102
96
100
86
67
54
48
41
37
0
Q1 2002- Q4 2002
Q2 2002- Q1 2003
Q3 2002- Q2 2003
Q4 2002- Q3 2003E
Q1 2001- Q4 2001
Q2 2001- Q1 2002
Q3 2001- Q2 2002
Q4 2001- Q3 2002
mySAP SCM as of I2 and Manugistics
mySAP CRM as of Siebel
Source SAP Analysis based on Company Data and
Financial Analysts Estimates Forecast by
Company Data and Financial Analysts (I2,SEBL) and
SAP internal estimates Fiscal year is not
calendar year - Comparison based on most recent
quarter (e.g. SAP Q1 vs. MANU Q4)
37
Henning Kagermann
38
Excellent Range of Products
Market Shares by Product in 2002
Total26.5 bn
4.3
5.4
5.9
2.4
1.6
1.5
0.8
2.3
11
32
Ø SAP 17.5
24
12
13
10
10
FI 1
HR 1
SCM 1
CRM 2
PLM 1
SRM 1
BI 2
Portals 1
EAI

Based on product revenues (license
maintenance)/preliminarySources SAP Analysis
2003, IDC 2002 2003, Company Filings
39
Next Wave of Information Technology
Business Requirements
Adaptable business
Service OrientedArchitecture
Leverage
?
Integrated processes
Client/Server Architecture
Replace
X
CentralizedComputing
FunctionalAutomation
Technology Advances
40
Service-Oriented Architectures Enhance Enterprise
Agility
NEW People-Centric Solutions
NEW Composite Business Scenarios
ATP
Price
Delivery delay
Service request
STABLE Operational Enterprise System
41
and Eliminate TCO Drivers

• Use a pre-integrated open integration platform
• Use best business practices preconfigured in a
  solid business application suite

SAPNetWeaver PortalBI, KM, Mobile,
mySAP Business Suite
Other

• Websphere
• .net

CustomBuilt

Lega- cy
42
SAP NetWeaver - The Open Business Platform

• Open integration of eco-system

Flexible Enterprise Service Architecture
Combined application integration platform
...
43
SAP NetWeaver - Momentum
EP 180 live
BI 1500 live
Market Out-performer Rapidly Gaining Share !

• Gartner 1 in growth (163), 4 in share
  (10.6)
• Forrester 1 in Tech rankings
• Installations 6410

XI15 live
WebAS 150 live
44
SAP NetWeaver Impact on Business Applications

• mySAP ERP is SAPs next generation ERP solution
  powered by SAP NetWeaver
• mySAP ERP includes a large number of new
  functions in comparison to SAP R/3 Enterprise

• SAP R/3
• Client-Server
• Standardized business process reengineering
• Distributed Processing

• mySAP ERP
• Enterprise Services
• Adaptive Business
• optimizing business process and user experience
• Distributed Business in a Networked Enterprise

2000
. . .
1992
2003
45
SAPs Product Strategy

• Business solution offering23 industries
• Best business practices Next business
  practices
• SAP NetWeaver
• Adaptive Computing Infrastructure

46
Driving Customer Value
People-centric solutions
2
Customer-centric solutions
1
The NetworkedEnterprise
BUSINESS SCENARIO OPPORTUNITY TO CASH
CUSTOMER PROCESS
ProductLeadership
CustomerIntimacy
3
Sense Respond
47
and Competitiveness Through Technological
Innovations

• Ambient Intelligence A New Dimension of Real
  Time Integration. Get the business process
  closer to the real world

Real Time Business
Availability
Service request
Goods receipt
Trigger Assembly
Operational Backbone
Intelligent Stuff
48
Market Shares by Industry in 2002
Market Shares by Industry in 2002
Ø SAP 17.5
Discrete
Process
Consumer
Services
Financial Serv.
Public Serv.
Total26.5 bn

Based on product revenues (license
maintenance)/preliminarySources SAP Analysis
2003, IDC 2002 2003, Company Filings
49
Forecast Total IT Spending 2006 by Industry
UTILITIES4
WHOLESALE TRADE 4
AGRIC., MINING CONSTRUCTION 2
TRANSPORTATION 5
PUBLIC SERVICES 21
RETAIL TRADE 6
SERVICES 8
FINANCIAL SERVICES 20
PROCESS MANUFACT. 9
DISCRETE MANUFACT. 11
COMMUNCATIONS 10
Source Gartner Group Vertical Market Trends
2001-2006 (March 19, 2003)
50
We Have the Unique Opportunity

• to faster expand our footprint in our installed
  base
• SAP NetWeaver the open, low TCO integration and
  application platform
• the most comprehensive product portfolio
• high customer loyalty and an attractive upgrade
  program
• to attract new customers and expand into emerging
  markets
• 30 software sales from new customer
• proven track record in aggressively capturing
  market share (CRM, )
• over 30 years of customer engagement in 23
  verticals
• to accelerate competitive replacements
• SAP remains the safest bet for the customer
• Best-of-breed strategies have failed too often
• SAP offers a unique combination of proven best
  business practices and innovate next business
  practices

51
Customer-Centric Solutions
DISTRIBUTED ORDER FULFILLMENT
MULTI-CHANNEL ORDER ACQUISITION
SAP NetWeaver
Suppliers
Business Division A
Mobile
Connectivity and integration services
Business Division B
Customer
Phone
Fulfillment Coordi-nation
DynamicSourcing
Extended Order Mgmt
Conver-gentBilling
Portal
Merge Centers
52
People-Centric Solutions

• Empowerment
• Roles
• Self-services
• Intuitive Navigation
• Portal
• Pattern
• Structured Cooperations
• Guided procedures
• C-rooms

53

• Executive Q A Henning Kagermann, Léo
  Apotheker, and Werner Brandt

54
Peter J. Kirschbauer
55
SAPs Industry Strategy

• Capitalize on SAPs industry expertise to fuel
  future growth and sustain competitive advantage
• Deliver end-to-end industry solutions build from
  solution portfolios for 23 industries
• Fully unlock the potential for open, flexible
  adaptable business solutions through adoption of
  SAPs comprehensive and powerful integration
  platform SAP NetWeaver
• Continue to move into verticals to capture
  existing and create new markets by capitalizing
  on the need for standard software.

56
License Revenue Analysis by Industry
rolling last 4 quarters as a of license
revenues
27
26
26
26
25
25
24
24
24
23
22
22
22
21
21
21
21
20
20
22
19
19
19
20
19
19
19
19
19
15
17
15
9
9
8
8
8
8
7
7
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
Q3 2001- Q2 2002
Q4 2001- Q3 2002
57
SAP Customers Within Fortune 500
n.b. the Public Sector is not covered by
Fortune Source Fortune 500 2002 internal CRM
58
Leveraging The Strengths of Solutions in 23
Industries
SAP for Aerospace Defense
SAP for Automotive
SAP for Banking
SAP for Chemicals
SAP for Consumer Products
mySAP Business Suite
SAP for EC O
SAP for Financial Service Prov.
SAP for Healthcare
SAP for Higher Education Res.
SAP for High Tech
SAP for Insurance
mySAP PLM
mySAP SCM
mySAP BI
mySAP SRM
mySAP Financials
mySAP HR
mySAP ERP
Industry-Specific Applications
SAP Packaged Solutions
Partner solutions applications
mySAP CRM
xApps
SAP for IM C
SAP for Media
SAP for Mill Products
SAP for Mining
SAP for Oil Gas
SAP for Pharmaceuticals
SAP for Professional Services
SAP for Public Sector
SAP for Retail
SAP for Service Providers
SAP for Telecommunications
SAP for Utilities
SAP NetWeaver
59
Example of how an Industry Portfolio is Assembled
SAP for Insurance Portfolio
Supportingindustry-specificprocesses
SAPNetWeaver
60
SAP NetWeaver SAP for Healthcare Examples
SAP NetWeaver
Collaboration within Healthcare Community, EPR,
Clinical Supply Chain
Information and Services at Point of Care
PEOPLE INTEGRATION
Multichannel access
Clinical Pathway, Quality Guidelines, Catalogs
Tailored Access for Physicians, Nurses,
Pharmacists, CEOs
Portal
Collaboration
INFORMATION INTEGRATION
Bus. Intelligence
Knowledge Mgmt
Data Integrity Organization Wide
Clinical Decision Support
Master Data Management
LIFE CYCLE MANAGEMENT
COMPOSITE APPLICATION FRAMEWORK
PROCESS INTEGRATION
Electronic Claims Processing / Exchange with
Medical Devices
Process Visualization and Optimization
Integration Broker
Bus. ProcessMgmt
APPLICATION PLATFORM
SAP Web ApplicationServer
Integrated Development Environment
J2EE
ABAP
DB and OS Abstraction
Web Services andBAPIs
...
Patient Management
Mobile Healthcare, E-Procurement
61
Packaged SolutionProject Management Project
Resource Planning
Business View
Technical View

• Packaged Solution
• Tailored low risk service offering
• Introduced Q4/2004
• Currently 26 packages available

• MARKET
• Companies less willing to take risks
• More demand for proven business value
• Lower availability of capital

• PRODUCT
• Addresses specific business-
  critical issues
• Industry centric modular solutions

• BENEFITS
• Accelerated Pay-back through
  tailored implementation services
• Reduced initial investment

62
Utilities - A Long-Term Industry Strategy That
Pays Off

• Key Learnings
• Industry dominance takes patience and time
• We sold many deals over many years to get we are
  today
• You cannot buy yourself into industry leadership
• We work with customers to continue the
  development of our solutions
• The customers are seeing benefits
• Success breeds success

SAP for Utilities
Marketshare
First Int. Utilities Conference
Others60
SAP40
Going vertical for a customer service billing
system
Industry Solution Utilities /CCS
IS-U/CCS FCS IS-U/CCS GCS
Market Entry RIVA
Establish dedicated IBU

• 830 customers in 56 countries (IS-U gt400 in
  45 countries)
• 190 million consumer contracts
• - 85 market share in Germany

Launch IS-U/CCS Development Project
First RIVA customers live
Start RIVA project
63
Creating Sustainable Value for Our Customers
Next value wave
TCO
mySAP Service Management for AD
Adaptiveness
SCM
CRM
Employee efficiency
PLM
mySAP AD for Aerospace Maintenance
SRM
Next practices
MRO
Cat/Ford
ME
mySAP AD
1997
1998
1999
2000 - 2002
2004 gt
64
Selling Into Existing Clients Case Study of an
International Industrial Group
Financials in one division Logistics in one site
R/2
1989-1992
400 users
Financials in one subsidiary Logistics one site
(supplier plant)
R/3
1994
1,000 users
R/3 project at holding company level Logistics in
two more plants
1996
2,000 users
Additional R/3 licenses for several sites,
subsidiaries and divisions HR implemented
1998
3,000 users
R/3 Value contract with the entire group (FI,
CO, MM, PM, Vertical Solution, )
2001
40,000 users
License Extension on Value contract for
mySAPCRM, mySAP PLM, mySAP BI, mySAP Mobile
Early 2002
43,000 users
Migration of R/3 value contract to
mySAP.comcontract incl. extension of users
mySAP Business Suite
End of 2002
51,500 users
65
SAP Creates Value!

• At Anzes (Air New Zealand Engineering Services) a
  competitive advantage has been built around the
  company's people and IT system SAP. Isn't it
  dull? Not when it allows 20 growth
• Craig Sinclair SVP of Operations Technical
• Air New Zealand
• Sunday Star Times, June 1st 2003

66
MD Industries Sector Selected Highlights 2003

• Machinery, Engineering Construction
• Successful launch of Industrial Machinery
  Components solution portfolio
• New wins with Sauer Danfoss, Cooper Ind.
• New Asset Services Portal to support after sales
• Successfully launched of Risk Management solution
  
• Mining
• Growing momentum for SAP for Mining
• Successful introduction of innovative supply
  chain solutions, BHP Billiton first live customer
• Mill Products
• Several success stories in SCM like Hülsta
• Expansion of SAP for Mill product in Asia-pacific
• Oil Gas
• New contract with Linde Gas
• Many successful go lives such as CVX, Total,
  PetroSA, ONGC
• Excellent responses from partner at Oil Gas
  Consulting Conference 2003.
• Launched initiative for Natural Gas Market
• Shell Oil using SAP All-In-One
• Pharmaceuticals
• Growing footprint in Pharma for RD and LIMS

• Aerospace Defense
• New contract with Bombardier Aerospace
• Frankfurt Airport goes live with mobile asset
  management
• Successful implementations at Air France and
  Lufthansa Cityline de facto standard for MRO
• Automotive
• New contract with Hyundai Motor Company
• OEMs Nissan went live with mySAP CRM
• 9 of 10 global top suppliers run SAP
• Audi went live with CRM 4.0 Customer Care
• Chemicals
• Growing momentum for SAP for Chemicals
• Successful 1st Chemical Executive Council
• Consumer Products
• New contract with Fraser Neave, Interbrew
• Adidas and Becks choose SAP for CRM
• Dial Corporation using SAP All-In-One
• Launch of SAP Trade Promotion Management Recipe
  Management Product Def.
• High Tech
• Major CRM successes, incl. Waters Corp., Siemens
  mobile, Samsung Elect. , Intermec, Adobe

67
SAPs Industry Strategy Program Strengths

• Powerful Organization in place
• Dedicated field organization
• Dedicated development and go-to-market
  organization (IBUs)
• Dedicated marketing organization
• Deep Industry Expertise and best practices
• Provision of first industry solutions already in
  early 90ties (Oil Gas, Utilities)
• Broad industry approach since introduction of
  IBUs in 97
• Broad range of industry content and sales tools
  available (gt30 Solution Maps, industry
  pre-configured systems, demos, ...)
• Strong Customer and Partner Assets
• Large and loyal customer base
• Large partner eco-system
• Joint development projects with leading edge
  organizations

68

• Thomas Balgheim

69
The Market for Packaged Solutions in Banking

• US 13,127
• Europe 8,889
• RoW 4,445

Forecast 16 annual growth, driven by growing
acceptance of packaged solutions
SAP AG Over 1000 installations, with more than
375 customers Over 200 new installations and more
than 30 new customers in the last 12 months
mio. RoW assumed to be 50 of European value.
All figures derived from IDC
70
SAPs Market Coverage
71
SAPs Product Coverage
Partial/ Planned/ Partner offer
No SAP offering
Current SAP offering
72
SAPs Positioning
Today Integrated Solutions
Future Integrative Platform
Front
Business Integration Layer
Operations
Operations
Analytics
73
SAPs Commitments, Delivered

• Strategic Investments of SAP in Banking
• 1998 board decision for strategic invest-ments, a
  result of experience in the sector and customer
  demand
• Integrated modules developed to provide a
  comprehensive solution suite
• SAP now provides solutions for all banking-
  specific operational and analytical processes

74

• Customer Presentation

75

• Q A
• Peter Kirschbauer, Thomas Balgheim, and Ludger
  Doerr

76
SAP InvestorSymposiumLondon, October 21st, 2003