SAP Capital Markets Day 2019 Presentation

Welcome to SAP Capital Markets Day 2019

Luka Mucic Bill McDermott Chief Financial Officer Chief Executive Officer Executive Board Member

Rob Enslin Christian Klein President, Cloud Business Group Chief Operating Officer Executive Board Member Executive Board Member

Jennifer Morgan President, Global Customer Operations Juergen Mueller Americas & Asia Pacific Japan Chief Technology Officer Executive Board Member Executive Board Member

Alex Atzberger President, SAP Customer Experience

09:30 – 09:35 am Welcome Stefan Gruber, Head of Investor Relations 09:35 – 10:05 am Strategy and Vision: Opportunity in Time of Disruption Bill McDermott, CEO 10:05 – 10:30 am Delivering the Intelligent Enterprise Christian Klein and Juergen Mueller, Executive Board Members 10:30 – 10:45 am Break 10:45 – 11:15 am SAP C/4HANA Shaking up CRM Alex Atzberger, President SAP Customer Experience 11:15 – 11:45 am Customer Perspective Hosted by Jennifer Morgan, Executive Board Member 11:45 am – 12:10 pm Charting the Course for 2023 Luka Mucic, CFO and Executive Board Member 12:10 – 12:55 pm Q&A 12:55 – 2:00 pm Buffet Lunch Reception 02:15 – 03:45 pm Breakout Sessions 03:45 – 04:30 pm Coffee and Networking

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 SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

Bill McDermott, CEO

Doubled Addressable Be the most innovative cloud company powered by SAP HANA Intelligent Enterprise Market

Public Cloud SAP Business Suite powered by SAP HANA

SAP Analytics Cloud • Integrated Intelligent Suite SAP HANA Enterprise Cloud • Revolutionizing Customer Launched Experience with C/4HANA €5.0bn • Leading the Experience €3.8bn Management category Sybase €3.0bn Cloud €2.3bn Revenue • Innovation with Intelligent €1.1bn €0.3bn Systems (Leonardo) € 0.0bn €0.0bn €0.8bn

UNTIL 2010 2011 2012 2013 2014 2015 2016 2017 2018

Cloud Peer Group Large Scale Peer Group 40% 15% Cloud Fastest Growing Cloud Growing faster than large scale Top line Top line peer group Growth Growth Highly profitable (~30% Op. Margin)

10% 0% $1 B $15 B 10% 50% Cloud Revenue Operating Margin

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Sources: Company filings, Factset, Morgan Stanley, Deutsche Bank, Credit Suisse estimates 5 Driving sustainable operating profit growth

Hyperscaler leverage Higher margin Services Hiring discipline

Ecosystem

Increased Cloud Gross Margin Keeping the “Meet or Exceed” Promise

Xexperience DATA 1.8B CX EX PX BX experience touchpoints run Customer Employee Product Brand on Qualtrics Experience Experience Experience Experience

DATA MANAGEMENT Cloud Platform | Data Management | AI

Customer Supply Chain ERP HCM Spend 77% Experience Management Management Of the world‘s EXPERIENCE MANAGEMENT EXPERIENCE transactions across 25 industries touch Ooperational SAP systems DATA

Winning Strategy 2023 Growth Ambition

1. X+O: Experience Management (X) 6. #1 in Experience Management Meets Intelligent Enterprise (O) 7. Fastest Growing in Customer 2. Next Gen CRM: C/4+S/4 End-to-End Experience

3. Industry 4.0: Next-Gen Manufacturing 8. #1 in Cloud ERP and Supply Chain 9. #1 in Cloud Workforce Management 4. Automation and Augmented Humanity: SAP Leonardo Everywhere 10. Global Standard in Business Networks: Trillions in Commerce 5. New Skills, Flexible Workforce: SAP SuccessFactors + SAP Fieldglass

Christian Klein (COO) and Juergen Mueller (CTO) Executive Board Members

SEAMLESS CUSTOMER EXPERIENCE

Marketing Sales Services Design Plan Manufacture Deliver Operate

Employee Finance Network & Engagement Spend Management

SEAMLESS CUSTOMER EXPERIENCE

Customer Manufacturing Marketing ExperienceSales Services Design Plan Manufacture Deliver Operate & Supply Chain

Employee Engagement DigitalFinance Core Network & Spend Management

Customer Manufacturing & Experience Supply Chain

Employee Digital Core Network & Spend Engagement Management

Machine Internet Big Data Blockchain Learning of Things SAP Leonardo

% % % % % % % % %

Real time steering across the value chain Reporting | Predictive Analytics | Integrated Planning

Customer Manufacturing & Experience Supply Chain

Employee Digital Core Network & Spend Engagement Management

SAP Cloud Platform powered by HANA

Digital Core

Employee Network & Spend Engagement Management

Intelligent Suite

Customer Intelligent Technologies Manufacturing & Experience Supply Chain

SAP Leonardo

Digital Platform

Data Management Cloud Platform

SAP S/4HANA Adoption 10,500+ # of licensed customers Licensed customers

10,500+ Ahead of R/3 Adoption

40% Net new customer share

132 Accelerated Cloud Growth in Finance and Professional Services 2015 2016 2017 2018 2019

Digital Core

Manufacturing & Employee Supply Chain Engagement

Intelligent Suite

Network & Spend Customer Management Experience Intelligent Technologies

SAP Leonardo

Digital Platform

Data Management Cloud Platform

Alex Atzberger, President SAP Customer Experience @aatzberger

#BeBold

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 17 We live in a Experience Economy 80% $2.5T $100B of customers have chosen Impact of yearly loss of trust due Estimated market size for customer to switch brands due to a to abuse of data privacy and experience solutions, platform and poor customer experience1 brand loyalty2 integration to operational systems3

Legacy CRM CX Suites

Transactional data Operational + Experience data

Siloed view and processes with Seamless end-to-end journeys designed focus on sales force automation around customer across all channels

Customer privacy not in scope Privacy built-in

Monolithic platforms Microservices-driven agile platform

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 19 SAP Marketing Service Cloud C/4HANA Cloud 2.8 Billion 5 Clouds and 7 Suite Attributes 61 million personalizations Service Tickets Commerce Sales Cloud Cloud

5-year Gartner MQ Leader 5+ million Sales Professionals

Customer Data Cloud 1 Billion+ consent profiles

Harmonized End-to-End Business and Master Suite Intelligence Platform Extensibility Open Ecosystem User Experience Processes Data Services and Analytics Services and Integration

Gartner Front Runners for Forrester Wave for B2C Forrester Wave for B2B Forrester Wave for Gartner Magic Quadrant for Field Services Commerce Suites Commerce Suites Customer Identity Mgmt Multichannel Marketing

IDC MarketScape AI in Gartner Magic Quadrant for Forrester Wave for IDC MarketScape Leader Gartner Magic Quadrant for Enterprise Marketing Clouds Configure, Price, Quote Configure, Price, Quote Subscription Relationship Sales Performance Management Management © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 21 Best-of-Suite: Most complete portfolio

Sales Service Marketing Commerce Customer Collaboration Cloud Integration Industries Open Data X Data & Data Platform Initiative O Data

Digital Commerce1 #1 #3 #4

CRM1 #2 #1 #3

Experience Management2 #1 n/a n/a

Source: (1) Gartner Enterprise Application Market Share Q12018, May 2018 (2) Qualtrics S1 filing

▪ Cloud Growth 170% YoY Q4 ▪ 10,000+ customers use either one or multiple C/4HANA solutions

Q3 ▪ 10M+ users from sales, service to marketing professions

▪ Close to 4,000 SAP CRM Q2 customers remain On-premise today

▪ Largest addressable enterprise app Q1 market, least penetrated market by

SAP C/4HANA + Qualtrics SAP C/4HANA provides a SAP C/4HANA + S/4HANA allow customers to put the single view of the customer are an integrated suite customer at the center of based on consent-driven resulting in lower integration their business and engage customer data costs and smarter end-to- across all channels with the end processes that connect customer demand chain to the company’s operational core

Hosted by Jennifer Morgan President, Global Customer Operations Americas and Asia Pacific Japan Executive Board Member

Luka Mucic, CFO and Executive Board Member

Doubled Addressable Be the most innovative cloud company powered by SAP HANA Intelligent Enterprise Market

Public Cloud SAP Business Suite powered by SAP HANA

SAP Analytics Cloud • Integrated Intelligent Suite

SAP HANA Enterprise Cloud • Revolutionizing Customer Launched Experience with SAP €5.0bn C/4HANA • Leading the Experience €3.8bn Management category Sybase €3.0bn Cloud €2.3bn Revenue • Innovation with Intelligent €1.1bn €0.3bn Systems (SAP Leonardo) € 0.0bn €0.0bn €0.8bn

UNTIL 2010 2011 2012 2013 2014 2015 2016 2017 2018

Software & Service Service Cloud Approaching Service 2007 Support 2018 80% 2023 €10bn Software €25bn More >€35bn 37% Predictable Software More 65% Predictable Support More Predictable © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC All figures based on non-IFRS. Amounts in doughnut charts represent total revenue. 30 2023 figures based on SAP’s 2023 ambition Staying our Course, Keeping our Promises

2015 2016 2017 2018

€1.95 – 2.05bn €2.95 – 3.05bn €3.8 – 4.0bn €4.95 – 5.15bn Outlook (€bn) Cloud Revenue €2.0bn €3.0bn €3.8bn €5.2bn Actual (€bn)

Cloud & Software +8% – 10% +6% – 8% +6% – 8% +6.5% – 8.5% Revenue (growth) +12% +8% +8% +10%

€23.2 – 23.6bn €24.8 – 25.3bn Total Revenue €23.8bn €26.0bn

Operating Profit €5.6 – 5.9bn €6.4 – 6.7bn €6.8 – 7.0bn €7.35 – 7.50bn €5.9bn €6.6bn €6.9bn €7.5bn

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC All figures based on non-IFRS, at constant currencies. Outlooks as provided in January of corresponding year, except 2018 (outlook as of April to reflect Callidus acquisition) 31 Increasing Our Ambition

2020 Ambition 2020 Ambition as of January 2015 as of January 2019

▪ Cloud Revenue ▪ Cloud Revenue in a range of €7.5 – 8.0bn + €1.1bn in a range of €8.6 – 9.1bn

▪ Total Revenue ▪ Total Revenue in a range of €26.0 – 28.0bn + €1.9bn in a range of €28.6 – 29.2bn

▪ Operating Profit ▪ Operating Profit in a range of €8.0 – 9.0bn + €0.3bn in a range of €8.5 – 9.0bn

Restructuring DSO upside potential €5.0bn Operating Cash Flow €4.6bn €4.3bn SBC payouts (Qualtrics) Restructuring SBC payouts Tax Key incremental Tax Interest (Qualtrics) effects on cash flow: Insurance Payments DSO upside potential Currency IFRS 16 (re-classification)

2016 2017 2018 2019e 2020e

Includes: Stock-based €1.0bn compensation €0.8bn payouts €0.6bn

2019 Adoption of IFRS 16 (Leases) Capital Expenditure and Free Cash Flow

€5.0bn Balance Sheet Expansion €4.6bn €1.7 – 1.9bn Operating €4.3bn Cash Flow

Operating Profit Increase 2016 2017 2018 2019e Significantly Below €0.1bn €1.5bn €1.5bn €1.3bn Capital €1.0bn Operating Cash Flow Increase Expenditure €0.3 – 0.4bn 2016 2017 2018 2019e

€3.6bn €3.8bn Free Cash Flow Unaffected Free €2.8bn previous definition Adjusted SAP Definition Cash Flow adjusted definition

2016 2017 2018 2019e

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC IFRS 16 balance sheet impact based on 2019 opening balance sheet. IFRS16 operating profit impact assumes 2019 leasing volumes comparable to 2018. 34 Capital expenditure defined as cash flow from purchases of intangibles and property, plant and equipment. Charting the Course for 2019 and 2020

Cloud Revenue Total Revenue Operating Profit (€bn) (€bn) (€bn)

+8 to +9% CAGR €28.6 – 29.2bn

€24.7bn +29% +11.5%

+33 to +7.5 to +11.5% €8.5 – 9.0bn +39% €8.6 – 9.1bn

€6.7 – 7.0bn €7.7 – 8.0bn

€7.2bn €5.0bn

2018 2019 2020 2018 2019 2020 2018 2019 2020

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC All figures based on Non-IFRS. 2019/2018 growth rates at constant currencies. 2020/2019 growth rates based on midpoints of 2019 outlook and 2020 ambition. 35 2023 Building the Cloud Suite – Achieving Scale >3x vs. 2018

2019 €6.9bn 2018 €5.0bn

2015 €2.3bn Cloud 2011 Revenue ~€20m

Ramping Approaching Scale Fully Scaled

▪ SAP Analytics Cloud ▪ Manufacturing & ▪ SAP C/4HANA ▪ SAP SuccessFactors Supply Chain ▪ SAP Cloud Platform ▪ Qualtrics ▪ SAP Concur ▪ SAP S/4HANA Cloud ▪ SAP Fieldglass ▪ HANA Enterprise Cloud ▪ SAP Ariba

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 36 All figures based on Non-IFRS. 2019 based on midpoint of cloud revenue outlook. 2023 based on SAP’s 2023 ambition. Expanding Gross Margins for Every Cloud Model

30-35% IaaS HANA Enterprise Cloud Gross Margin 13% (+6pp) IaaS 2020 €8.9bn 2018 Gross Margin 71% €5.0bn 60% (+3pp) 70% 63% SaaS/PaaS SaaS/PaaS SAP SuccessFactors Gross Margin Qualtrics SAP C/4HANA % (+1pp) % 78 >80 SAP S/4HANA Cloud Business Networks Business Networks SAP Cloud Platform SAP Concur Dig. Supply Chain SAP Ariba SAP Analytics Cloud SAP Fieldglass …

© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC All figures based on non-IFRS. Amounts in doughnut charts represent cloud revenue, percentages represent overall cloud gross margins. 37 Percentage points reflect year-over-year expansion. 2020 figures based on SAP’s 2020 ambition Expanding Gross Margins, Decreasing Expense Ratios

Gross Margins Expense Ratios

Non-IFRS; in percent 2017 2018 2020e Non-IFRS; expenses as a percentage of total revenue 2018 2020e

Business Network 76.7 77.8 >80 Research and Development 13.8 Private Cloud (IaaS) 7.2 13.0 30-35 Sales and Marketing 25.0 Public Cloud (PaaS/SaaS) 56.7 59.9 70

Cloud 62.2 63.1 71 General and Administration 4.0

Software & Support 87.0 87.4

Cloud & Software 82.2 81.5

Services 23.5 22.9

Total Gross Margin 72.5 71.8

Cloud Revenue Total Revenue > 3x > €35bn vs. 2018

More Predictable Revenue Operating Profit

approaching 80% 7.5 – 10% 5-year CAGR

What we think What you think

▪ The integrated, intelligent suite always wins ▪ “SAP grew cloud subscription at a rate faster than their main competitors in FY’18” ▪ Only SAP enables companies to build a reliable, future-proof IT platform for their mission-critical ▪ “SAP offers a good combination of defensive growth, operations given its exposure to digital transformation and its high share of recurring revenue” ▪ SAP is end-to-end – on premise, hybrid and cloud ▪ “SAP S/4HANA is SAP’s most significant innovation ▪ Together with Qualtrics, SAP will become the in the core for 20 years” undisputed leader in the Experience Management category ▪ “With their broad innovative and competitive portfolio SAP delivers rapid growth quarter by quarter“ ▪ SAP has a resilient, predictable and sustainable business model ▪ “SAP Leonardo, which helps companies to orchestrate disruptive capabilities, could be the start ▪ SAP has a strong focus on sustainability of another powerful product cycle”