THE LEADER IN OPEN

1
THE LEADER IN OPEN INTEGRATED SOFTWARE SOLUTIONS

Roadshow AsiaMarch, 4-6 2002 Les Hayman CEO
President SAP APA Region andMember of the
Extended Management Board, SAP AG
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 the Companys Annual
  Report on Form 20-F for 2000 filed with the SEC
  on March 28, 2001. 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

2001 Strong Performance
mySAP.com The Growth Strategy
Leader in Open, Integrated Software Solutions
4
What Makes the Difference

• Leading in Products and Technology
• Most complete E-Business Suite
• Unparalleled Global Spread
• 44,500 Installations in 120 countries
• The Largest Installed Base
• 17,500 Companies run SAP
• Matchless Business Experience
• Providing 21 Industry Solutions
• 30 years of blending industry expertise
• Unique Distribution Power
• Multi-channel and Advanced Account Mgmt. Program
  supported by Superb Brand

5
Improving the Top Line... CAGR 35 10 Years
bn
10
CAGR sales 35
7.34 17
Target 2002 15
8
6.27 23
5.11 18
6
4.32 43
3.02 59
mySAP.com
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
6
...into the Operating Line CAGR 35 10 Years
mill.
1,471 18
1,600
1,244 32
1,400
CAGR Operating income 35
1,200
2002 Target gt21 of revenue
942 5
901 16
1,000
CAGR Net income 31
775 61
800
mySAP.com
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
excl. stock-based compensation and TopTier
acquisition cost 1999 onwards
7
Agenda
SAP Leading the Way in Business Software

• 2001 Strong Performance

mySAP.com The Growth Strategy
Leader in Open, Integrated Software Solutions
8
2001 Highlights

• In a challenging period customers chose a strong
  business software vendor with a unique and
  comprehensive offering
• SAP gained market share
• SAP increased its brand value
• SAP improved its customer satisfaction

9
Financial Performance in FY 2001

• Revenues up 17 year on year driven by strong
  performance in CRM and SCM as well as selling
  integrated backbone solutions
• License revenue up 5 year on year driven by a
  broad solution portfolio meeting customer demands
  even in a tough environment
• Operating margin excl. SBCP and TopTier
  acquisition related charges stable at 20 in a
  challenging environment

10
Expanding Leadership in Business Software
Market Share FY2001
Market Share FY2000
PSFT 12
PSFT9
SAP43
ORCL17
ORCL19
SAP39
SEBL 20
SEBL20
ITWO 8
ITWO13
Based on License Revenues
11
Opportunity for Further Market Share Growth
Market Share FY2001
Market Share FY2000
SAP
15
SAP
ORCL
6
14
ORCL
PSFT
5
7
Other67
ITWO
2
PSFT
4
5
Other67
ITWO
3
SEBL
5
SEBL
43,600 (M)
40,000 (M)
Source IDC/ Gartner, Company Reports
12
Brand Awareness Never Better
17,500 Customers in 120 Countries A Truly Global
Leader
13
Group Sales by Region FY 2001
Total Revenue FY 2001 7,341 mill.
Americas 2,698 mill.12
EMEA 3,802 mill.23
(of which US 2,056 mill.13)
APA 841 mill. 9
(thereof Germany 1,566 mill.21)
(of which Japan 431 mill.25)
y-o-y growth
14
License Revenue Analysis by solution FY 2001
Total License Revenue FY 2001 2,581 mill.
mySAP SCM23
mySAP Financials /mySAP HR36
mySAP CRM17
mySAP BI/Portals mySAP E-Proc
/ Marketplaces16
mySAP PLM8
of license revenue
15
Selected Wins in 2001
Global Recognition of SAPs Leading Technology

• Siemens
• Deutsche Telekom
• Nokia
• Centrica
• Philips
• Agfa

• Graybar
• Compaq
• Nike
• CreoScitex
• Kellogg
• NASA
• Dep. Of Defense

• Samsung
• Japan Airlines
• Sony
• Sanyo
• Korea Electric Power
• CLP Power Hong Kong

• Unibanco
• Petrobras
• OSDE
• Metrogas
• Agip

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What Customers Want Now!
Continual CommitmentTo Customer Needs
SAP
?

• Application integration
• E-business strength
• ERP software
• Proven solutions
• Industry know-how

?
?
?
?
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2002 SAP Priorities What We Will Deliver

• Expanding leadership in open, integrated software
  solutions
• Fortifying leadership position in SCM, Technology
  and ERP increase 2 in CRM
• Expanding the global footprint in all
  mission-critical solution and technology areas
• Leveraging partnership opportunities across all
  markets including SME
• Ongoing adjustment of business model according to
  market needswith focus on improved profitability

18
Agenda
SAP Leading the Way in Business Software
2001 Strong Performance

• mySAP.com The Growth Strategy

Leader in Open, Integrated Software Solutions
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Todays Landscape Inside a Company

• How to capitalize on existing IT investments ?
  
• ... through SAP integration of heterogeneous
  systems !

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

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

Distributor
EDI
INTERNET
E-Mail
ContractManufacturer
Subcontractor
MSExcel
Parts Provider
Raw Material
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mySAP Technology Available With mySAP.com

• Portal infrastructure
• mySAP Enterprise Portals
• Delivered now through enterprise portal solutions
• Integral part of mySAP.com e-business platform
• Web Application Server
• SAP Web Application Server 6.10
• Delivered now as underlying infrastructure of
  mySAP.com components
• New capabilities starting Q2/2002
• Integral part of mySAP.com
• Exchange infrastructure
• Shared business semantics and message-based
  integration runtime
• Delivered now as part of private exchange
  solution
• New capabilities starting Q2/2002
• Integral part of mySAP.com e-business platform

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Leading in Products and Technology
PortalInfra-structure
Enterprise Portals mySAP Enterprise Portals
SRM mySAPSRM
HR mySAPHR
SCM mySAPSCM
CRM mySAPCRM
PLM mySAPPLM
FIN mySAPFinan-cials
BI mySAPBI
3rd Party, ...
SAP Web Application Server
ExchangeInfra-structure
Exchange mySAP Exchanges
AVAILABLE FOR 21 INDUSTRY SOLUTIONS
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Extend e-Business Leadership Through Focus
Customer Relationship Management
Supply ChainManagement
ProductLifecycle Management
EnterprisePortals / BI
MarketPlaces
6,700 customers gt6 Mio. users
2,150 customers
1,400 customers
5,200customers
3,200customers
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Agenda
SAP Leading the Way in Business Software
2001 Strong Performance
mySAP.com The Growth Strategy

• Leader in Open, Integrated Software Solutions

25
mySAP SCM and mySAP CRM Momentum 2001
mySAP SCM as of i2
300
280
200
132
121
113
100
41
0
Q1 2001
Q2 2001
Q3 2001
FY 2001
Q4 2001
mySAP CRM as of Siebel
80
69
60
37
37
31
40
18
20
0
Q1 2001
Q2 2001
Q3 2001
Q4 2001
FY 2001
26
License Revenue Analysis by Industry FY 2001
Consumer Industries
Discrete Industries
Service Industries
Process Industries
Financial Services
Public Sector
percentage points
27
Top Quality for Mission-Critical Business
Solutions

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

Segmentation
Corporate Governance
Partner Value Net
Service Infrastructure
28
New Business Opportunities
mySAP.com

• Communication services
• 10,000 employees
• Annual sales 2 billion USD

65
R/3
22
R/2
5
3
1985
1995
2000
29
Growth Drivers 2002 and beyond

• 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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What Makes the Difference

• Leading in Products and Technology
• Most complete E-Business Suite
• Unparalleled Global Spread
• 44,500 Installations in 120 countries
• The Largest Installed Base
• 17,500 Companies run SAP
• Matchless Business Experience
• Providing 21 Industry Solutions
• 30 years of blending industry expertise
• Unique Distribution Power
• Multi-channel and Advanced Account Mgmt. Program
  supported by Superb Brand

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APPENDIX
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ERP Room to Grow

• ERP Today
• ERP provides core functionality for mySAP.com
  solutions
• SAP R/3, the ERP offering of SAP, provides
  efficiency gains and comprehensive functionality
  that integrates all core business processes
• ERP functionality continually developed by SAP
  (SAP R/3 Enterprise launch in Q3 2002)
• ERP make first step to e-business easy.Today out
  of 17,500 customers, 15 of global R/3
  customers have started the migration to
  mySAP.com25 have successfully transitioned to
  mySAP.com

Our efficiency gains continue to exceed our
expectations as the next generation of SAP
applications and other productivity programs are
implemented around the globe. Colgate-Palmolive
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CRM Assuming a Leadership Role

• mySAP CRM
• Closed LoopEnabling the entire customer
  interaction cycle for customer visibility and
  responsiveness
• Connected Seamless integration across front and
  back office, transforming business processes into
  customer processes
• People Centric Empowering people to drive
  customer value across all interaction channels
• Collaborative Aligning the entire value network
  across enterprise boundaries to better serve
  customers
• Industry Specific Understanding the specifics
  and leveraging the synergies.

SAP is a platform to help us move toward
becoming a high-service, low-cost provider in a
highly competitive environment. By focusing on
costs and driving operating efficiencies, were
perfectly positioned to expand our customer
service leadership and market opportunities. OSR
AM SYLVANIA
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SCM Maintaining the Leadership Position

• mySAP SCM
• Gives companies integrated supply chain planning
  and execution
• Cross-company supply chain coordination through
  adaptive supply chain networks
• To react quickly to customer requests, changing
  markets, and replenishment bottlenecks
• Through state-of-the-art optimization and
  control technology
• For use in companies and private/public exchanges

We are pleased with the effect mySAP SCM is
having on Sharp as a company. It is easy to get
accurate information in each processes, and
manage information altogether. Sharp
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PLM Stable and Growing

• mySAP PLM
• Enables enterprises to develop the right products
  at the right time at lowest costs
• Integrates customers, suppliers and development
  partner
• Enables a faster time to market and ramp-up
  through tight integration with SCM
• Offers a complete solution for engineering,
  project management, quality management and asset
  management
• For use in companies and private/public Exchanges

We provide our customers with high-demand and
innovative mobile solutions, and utilizing mySAP
PLM helps us get these products to the market for
rapid profitability and customer satisfaction.
Siemens Mobile also benefits from the
collaborative capabilities in mySAP PLM, and this
improves our relationships with internal and
external design and development
partners. Siemens Mobile
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THE LEADER IN OPEN INTEGRATED SOFTWARE SOLUTIONS

Roadshow AsiaMarch, 4-6 2002 Les Hayman CEO
President SAP APA Region andMember of the
Extended Management Board, SAP AG