The Leader in Business Software Solutions

1
The Leader in Business SoftwareSolutions

• SAP Senior Management TeamGlobal Investor
  RoadshowApril 23 25, 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

SAP Leading the Way in Business Software
Key Financial Data
SAPs Platform to Meet Customer Requirements
Outlook 2003 and Summary
4
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
• Strategic vertical solutions for 23 Industries
• The most complete business software suite
• Strong focus on RD with 8,200 developers a
  bigger investment than any other business
  software vendor

5
SAP Milestones over 30 Years

• mySAP
• Business Suite
• SAP NetWeaver
• ESA
• 7.4 bill. Revenue
• 28,654Employees
• 19,600 Customersin 120 Countries

• mySAP.com
• One-Step-
• Business
• 6,265 bill. Revenue
• 25,000Employees
• 15,000 Customersin 120 Countries

• R/3
• Client/Server
• 424 mill. Revenue
• 3,200 Employees
• 2,800 Customers in 35 Countries

• R/2
• Mainframe
• 5.1 mill. Revenue
• 60 Employees
• 50 Customersin 2 Countries

• R/1
• 0.3 mill. Revenue
• 9 Employees

1999/2000
1972
1979
1992
2002/2003
6
Improving the Top Line... CAGR 29 last 12 Years
bn
10
CAGR sales 29
7.41 1
7.34 17
8
6.27 23
5.11 18
6
4.32 43
3.02 59
mySAP Business Suite
4
1.9 38
R/3
1.38 47
2
936m 66
563m 33
425m 18
362m 42
0
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
7
...into the Operating Line CAGR 27 last 12
Years
1,686 15
m
1,471 18
1,600
1,244 32
1,400
CAGR Operating income 27
1,200
CAGR Net income 26
942 5
901 16
1,000
775 61
800
mySAP Business Suite
482 46
600
333 45
400
230 98
R/3
116 53
76 -16
200
88 66
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
8
SAP has continuously gained market share against
key competitors
Total license revenue - Relative Market Shares
(rolling 4 quarters based on license revenues)
54
51
47
45
43
41
39
37
36
20
20
19
19
19
18
17
17
16
16
17
15
16
15
14
12
12
12
15
12
13
14
10
13
12
12
8
11
9
10
10
6
5
5
5
5
6
5
5
4
4
4
4
3
3
Q1 2002- Q4 2002
Q2 2002- Q1 2003E
Q2 2000- Q1 2001
Q3 2000- Q2 2001
Q4 2000- Q3 2001
Q1 2001- Q4 2001
Q2 2001- Q1 2002
Q3 2001- Q2 2002
Q4 2001- Q3 2002
Analysis based on Company data and financial
analysts estimates Forecast based on 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)
9
Agenda
SAP Leading the Way in Business Software

Key Financial Data
SAPs Platform to Meet Customer Requirements
Outlook 2003 and Summary
10
Key Achievements in Q1 2003

• Q1 2003 total revenues were up 1 at constant
  currencies
• Q1 2003 operating income increased by 60 to 298
  million
• Strong performance in the U.S. and Japan
• SAP increased global market share sequentially by
  another 3 percentage points to 54 (on a rolling
  4 quarter basis)
• Free Cash Flow increased 45 to 756 million (50
  of Q1 2003 revenues)

11
Key Figures 1st Quarter 2003
Q1 2002 millions
Q1 2003 millions
constant currency

License revenues
-4
402
-12
352
1
1,658
-8
Total revenues
1,520
Operating income
336
186
60
298
- Margin as a of sales
20
11
Income before income taxes
311
127
145
- Margin as a of sales
20
8
Effective tax rate
40
47
-7
Net income
186
65
186
- Margin as a of sales
12
4
0.60
0.21
Earnings per share (in )
186
percentage points
actuals 2003 converted with the exchange rates
of 2002
12
Key Figures 1st Quarter 2003
Q1 2002 millions
Q1 2003 millions

EBITDA(2)
240
45
348
- Margin as a of sales
9
14
23
Pro forma Operating income excl. stock-based
comp. and acquisition-related charges(1)
238
28
304
- Margin as a of sales
6
14
20
Pro forma EPS excluding stock-based
compensation, acquisition-related charges, and
impairment-related charges(1)
83
0.64
0.35
percentage points
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-20 -2
EMEA 854 m-4 -3
APA 198 m 7 20
of which Germany 363 m-3 -3
of which Japan 111 m25 37
Y-o-y growth currency adjusted
actuals 2003 converted with the exchange rates of
2002
14
License Revenue by Region 1st Quarter 2003
License Revenue Q1 2003 352 mill. -12 -4
Americas 88 m-2 26
of which US 71 m1 24
EMEA 205 m-23 -22
APA 59 m 31 49
of which Japan 35 m133 153
of which Germany 86 m-13 -13
Y-o-y growth currency adjusted
actuals 2003 converted with the exchange rates of
2002
15
License Revenue Analysis by Industry Q1 2003
Consumer Industries 14 (-4)
Discrete Industries 24 (3)
Service Industries 25 (0)
Process Industries 24 (4)
Financial Services 6 (-2)
Public Services 7 (-1)
Compared to FY 2002
16
License Revenue Analysis by Solution Q1 2003
Total License Revenue Q1 2003 352 mill.
mySAP SCM 24 (4)
mySAP Financials /mySAP HR 33 (-10)
mySAP CRM 21 (3)
mySAP BI/ mySAP Enterprise Portal/mySAP SRM/
Marketplaces 15 (4)
mySAP PLM 7 (-1)
Of license revenue Y-o-Y growth in
percentage points
17
Balance Sheet Cash Flow Analysis
Dec 31, 02 Q1 2002
Mar 31, 03 Q1 2003
in mill.

-3
84
87
DSO

49
535
360
Change in Working Capital
Operating Cash Flow CapEx Free Cash
Flow Free Cash Flow as a of Revenue
546
45
793
-58
-36
-37
488
55
756
29
21
50
percentage points days
18
Agenda
SAP Leading the Way in Business Software
Key Financial Data

SAPs Platform to Meet Customer Requirements
Outlook 2003 and Summary
19
New Reality Business Requirements

• Reduce costs
• Improve efficiency by better processes
  practices
• Decrease TCO of IT solutions
• Faster ROI on IT investments
• Solutions aimed at business pain points
• Leverage existing investments, i.e. integrate
  them
• Solutions that adapt to changes
• Solutions that support competitive strategies
• Solutions that do not slow down the evolution of
  business
• Better visibility
• Business performance management
• Real Time" (event driven) business

20
The Next Move to Adaptive Business
Business Requirements
Enterprise Service Architectures
Adaptable business
Leverage
?
3-Tier Client/Server
Integrated processes
Replace
X
Standard software
Mainframe
Technology Advances
21
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
ATP
Price
Delivery delay
Service request
Focused Operational "Nodes"
22
SAP Product Portfolio Best of Suite
SAP for ltIndustrygt

• SAP for Aerospace Defense
• SAP for Automotive

• ...

SAP Packaged Solutions

• Service Management for ltIndustrygt
• Financial Insights for ltIndustrygt

• ...

• SAP xApps
• SAP xApp Resource Program Mgmt
• SAP xApp Product Definition
• SAP xApp Mergers Acquisition
• ...

• mySAP Business Suite
• mySAP ERP
• mySAP Financials
• mySAP HCM
• mySAP CRM
• mySAP SCM
• mySAP SRM
• mySAP PLM

SAP SmartBusiness Solutions

• mySAP All-in-One

• mySAP EnterprisePortal
• mySAP Business Intelligence
• mySAP Marketplace
• SAP R/3 Enterprise

• SAP Business One

• SAP Business One Server

SAP NetWeaver

• SAP Enterprise Portal
• SAP Master Data Mgmt

• SAP Business Intelligence
• SAP Exchange Infrastructure

• ---
• ...

23
SAP NetWeaver - The Business Foundation

We look forward to building on our long-standing
relationship with SAP to deliver real business
value to our customers. With full-fledged
access to the NetWeaver Enterprise Services
Architecture, customers can harness the
productivity and power of Microsoft .NET to
connect, customize, and enhance solutions.
SAP NetWeaver
PEOPLE INTEGRATION
Multi channel access
Portal
Collaboration
INFORMATION INTEGRATION
Bus. Intelligence
Knowledge Mgmt
Master Data Management
COMPOSITE APPLICATION FRAMEWORK
LIFE CYCLE MANAGEMENT
PROCESS INTEGRATION
Integration Broker
Bus. ProcessMgmt
APPLICATION PLATFORM
J2EE
ABAP
DB and OS Abstraction
...
24
Adaptive Services-Based Business Solutions
Corporate

• Shared Services
• Finance
• HR

Services on demand
Scaled for Your Subsidaires
Division ..
Channel Mgmt.
Division 1 Designedfor YourIndustry
mySAP All-in-One
WebServices
mySAP ERP
SAP Business One
VMI
Ready for Your Future
Production
Distribution
Service
25
SAP xApps Orchestrate New Business Processes in
a Heterogeneous Landscape
Corporate

• Shared Services
• Finance
• HR

Services on demand
Scaled for Your Business
Channel Mgmt.
Division 1 Designedfor YourIndustry
WebServices
Composite Applications
VMI
VMI
Ready for Your Future
Service
Production
Distribution
26
Solutions for Small to Midsize Businesses

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

SAP CHANNEL PARTNERS

• Based on mySAP Business Suite
• SAP Best Practices
• SAP One Server Toolkit
• Vertical Solution Development Toolkit
• 3,500 customers, 200 partner

• Standard software package
• Covering business needs for accounting,
  reporting, logistics, sales force automation, and
  more
• Easy to configure and easy to use
• Low investment and low cost of op.
• 1,300 customers, 100 partner

27
Value for Our Customers
PRODUCTS
SERVICES
SAP PARTNER CUSTOMER SERVICE NETWORK
Global Custom Develop-ment
Educational Services Products
Prof. Services
Hosting
Support
Business Maps Engagement Tools
Ramp Up
REAL VALUE
28
Value for Our Customers
Customer Example

• Potential Cost Savings in Shared Services (per
  year)
• SAP NetWeaver gt 53 million
• SAP Enterprise Portal gt 20 million
• SAP Financials gt 48 million
• SAP Human Resources gt 3 million

CustomerGlobal EnterpriseManufacturing Industry

• Potential Cost Savings (per year)
• Division 1
• Procurement (MRO) gt 7 million
• Division 2
• Engineering (PLM) gt 15 million
• Division 3
• Logistics Processes (SCM) gt 60 million
• Division 4
• CRM gt 7 million

Division 1
Division 2
Division 3
Division 4 Complete Industry Solution
Total 213 million
29
Value Proposition Through SAP NetWeaver (XI)
Customer Example
IT Costs 500 million
SAP NetWeaver (XI) is able to reduce IT costs
from 1.71) to 1.52) of overall revenue this
means cost savings of 53 million per year
1) Customers Estimate 2) Industry Benchmark
30
Agenda
SAP Leading the Way in Business Software
Key Financial Data
SAPs Platform to Meet Customer Requirements

Outlook 2003 and Summary
31
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.
1Management 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 SAPs
share price, or the share price of companies we
acquire or in which we invest.
32
Summary

• In a challenging market environment, SAP is
  focused on
• Increasing market share
• SAPs 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)

33
The Leader in Business SoftwareSolutions

• SAP Senior Management TeamGlobal Investor
  RoadshowApril 23 25, 2003

34
Appendix
APPENDIX
35
Pro forma information
(1) SAP has provided information in 2002 and 2001
using pro forma measures on a consolidated basis
and released guidance based on these measures for
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.
36
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.