HELPING CUSTOMERS ADAPT TO A WORLD OF CHANGE OUR ROAD MAP TO THE FUTURE Innovation is no longer the exclusive realm of the research and SAP ANNUAL REPORT 2007 REPORT ANNUAL SAP development lab. Today, it’s the responsibility of every person in every organization – every business day. SAP fosters innovation at the speed of today’s fast-moving business environment. From technology platforms that allow applications to be cus- tomized “on the fly,” to comprehensive support services, to the world’s most complete family of solutions for businesses of all sizes, we provide INNOVATION AT THE SPEED OF YOUR BUSINESS THE SPEED OF YOUR AT INNOVATION the tools that enable customers to stay one step ahead of relentless Group Headquarters SAP ANNUAL REPORT 2007 change while helping individual users work more productively. What’s more, SAP AG INNOVATION AT THE SPEED OF YOUR BUSINESS Dietmar-Hopp-Allee 16 50088012 we deliver these tools with the added value of unparalleled expertise 69190 Walldorf Germany in more than 25 distinct industries, and the support of the world’s largest www.sap.com partner ecosystem. This unique combination has helped SAP become the world’s enterprise software leader, with 43,800 employees in more than 50 countries, and over 46,100 customers worldwide. SAP continues to accelerate the pace of change, through new technology platforms, new applications, and new best practices, to serve an ever- expanding universe of customers, industry categories, and business roles. Because innovation and responsiveness are what our business is all about. Financial Summary HELPING CUSTOMERS ADAPT TO A WORLD OF CHANGE OUR ROAD MAP TO THE FUTURE Innovation is no longer the exclusive realm of the research and SAP ANNUAL REPORT 2007 REPORT ANNUAL SAP development lab. Today, it’s the responsibility of every person in every organization – every business day. SAP fosters innovation at the speed of today’s fast-moving business environment. From technology platforms that allow applications to be cus- tomized “on the fly,” to comprehensive support services, to the world’s most complete family of solutions for businesses of all sizes, we provide INNOVATION AT THE SPEED OF YOUR BUSINESS THE SPEED OF YOUR AT INNOVATION the tools that enable customers to stay one step ahead of relentless Group Headquarters SAP ANNUAL REPORT 2007 change while helping individual users work more productively. What’s more, SAP AG INNOVATION AT THE SPEED OF YOUR BUSINESS Dietmar-Hopp-Allee 16 50088012 we deliver these tools with the added value of unparalleled expertise 69190 Walldorf Germany in more than 25 distinct industries, and the support of the world’s largest www.sap.com partner ecosystem. This unique combination has helped SAP become the world’s enterprise software leader, with 43,800 employees in more than 50 countries, and over 46,100 customers worldwide. SAP continues to accelerate the pace of change, through new technology platforms, new applications, and new best practices, to serve an ever- expanding universe of customers, industry categories, and business roles. Because innovation and responsiveness are what our business is all about. Financial Summary FINANCIAL SUMMARY FACTS AND FIGURES (U.S. GAAP) SAP Share in Comparison with the DAX®, the Dow Jones EURO STOXX 50®, and the GSTI® Software Index Total Revenue Software and Software-Related Service Revenue Publication Details December 29, 2006 to February 29, 2008 | percent € millions | change since previous year € millions | change since previous year 125 SAP Share (Xetra®) 7,025 7,514 8,509 9,393 10,242 4,716 5,184 5,955 6,596 7,427 Publisher DAX 30 Performance Index (Xetra) –5% +7% +13% +10% +9% 0% +10% +15% +11% +13% SAP AG 120 Dow Jones EURO STOXX 50® – Price Index Global Communications Goldman Sachs GSTI Software Index – Price Index 10,000 6,000 115 7,500 4,500 Design and Production 5,000 3,000 Kuhn, Kammann & Kuhn AG, Cologne, Germany 110 2,500 1,500 0 0 Photography 105 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Ralf Berndt, Cologne, Germany (pages 4, 5) 100 Photography Reference Customers BASF (pages 14, 15) 95 CFE (pages 28, 29) Operating Income Operating Margin COMPASS (page 24) 90 € millions | change since previous year Percent | change since previous year in percentage points LOACKER (page 22) NIKE (pages 70, 71) 85 1,724 2,018 2,337 2,578 2,732 24.5 26.9 27.5 27.4 26.7 OLYMPUS (pages 38, 39) +6% +17% +16% +10% +6% +2.6% +2.4% +0.6% –0.1% –0.7% 80 Printing 2,400 24 ColorDruck GmbH, Leimen, Germany 75 1,800 18 1,200 12 Copyright 70 600 6 ©2008 SAP AG 0 0 Dietmar-Hopp-Allee 16 01 02 03 04 05 06 07 08 09 10 11 12 01 02 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 69190 Walldorf Germany Trademarks and Service Marks Revenue Breakdown by Type of Activity SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, Core Enterprise Applications Vendor Share¹⁾ € millions | percent | change since previous year | Revenue Breakdown by Sales Destination Net Income PartnerEdge, ByDesign, SAP Business ByDesign, and Percent | change since previous year in percentage points constant-currency change since previous year € millions | percent | change since previous year € millions | change since previous year other SAP products and services and the associated logos are trade or service or registered trade or service Rest of market 51.9 SAP 28.4 Training 410 Software 3,407 USA 2,706 Germany 2,004 1,077 1,311 1,496 1,871 1,919 marks of SAP AG in Germany and many other countries ț ț ț ț ț ț –5.7% +4% 4% | +7% | +11% 33% | +13% | +18% 26% | +4% 20% | +5% +112% +22% +14% +25% +3% in the world. All other mentioned product and service Consulting 2,221 names are marks or registered marks of their respective ț 22% | –1% | +2% 1,600 companies. Rest of Rest of EMEA 3,386 1,200 Other service 113 ț ț Subscription Americas 871 ț 33% | +13% 800 This English translation of the SAP Annual Report is Oracle 16.5 1% | +18% | +23% and other software- ț 9% | +12% 400 provided for convenience only; the German original is +1.4% Other 71 related service 182 ț Rest of 0 2% | +41% | +46% definitive. 1% | +3% | +7% Asia Pacific Japan 828 Microsoft 3.3 ț Japan 447 2003 2004 2005 2006 2007 ț Support 3,838 ț ț 8% | +22% +0.4% 4% | +4% 37% | +11% | +15% ¹⁾ Based on worldwide software and software-related services revenues on a rolling four-quarter basis, for Microsoft and Oracle business solutions only. SAP Annual Report 2007 209 FINANCIAL SUMMARY FACTS AND FIGURES (U.S. GAAP) SAP Share in Comparison with the DAX®, the Dow Jones EURO STOXX 50®, and the GSTI® Software Index Total Revenue Software and Software-Related Service Revenue Publication Details December 29, 2006 to February 29, 2008 | percent € millions | change since previous year € millions | change since previous year 125 SAP Share (Xetra®) 7,025 7,514 8,509 9,393 10,242 4,716 5,184 5,955 6,596 7,427 Publisher DAX 30 Performance Index (Xetra) –5% +7% +13% +10% +9% 0% +10% +15% +11% +13% SAP AG 120 Dow Jones EURO STOXX 50® – Price Index Global Communications Goldman Sachs GSTI Software Index – Price Index 10,000 6,000 115 7,500 4,500 Design and Production 5,000 3,000 Kuhn, Kammann & Kuhn AG, Cologne, Germany 110 2,500 1,500 0 0 Photography 105 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Ralf Berndt, Cologne, Germany (pages 4, 5) 100 Photography Reference Customers BASF (pages 14, 15) 95 CFE (pages 28, 29) Operating Income Operating Margin COMPASS (page 24) 90 € millions | change since previous year Percent | change since previous year in percentage points LOACKER (page 22) NIKE (pages 70, 71) 85 1,724 2,018 2,337 2,578 2,732 24.5 26.9 27.5 27.4 26.7 OLYMPUS (pages 38, 39) +6% +17% +16% +10% +6% +2.6% +2.4% +0.6% –0.1% –0.7% 80 Printing 2,400 24 ColorDruck GmbH, Leimen, Germany 75 1,800 18 1,200 12 Copyright 70 600 6 ©2008 SAP AG 0 0 Dietmar-Hopp-Allee 16 01 02 03 04 05 06 07 08 09 10 11 12 01 02 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 69190 Walldorf Germany Trademarks and Service Marks Revenue Breakdown by Type of Activity SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, Core Enterprise Applications Vendor Share¹⁾ € millions | percent | change since previous year | Revenue Breakdown by Sales Destination Net Income PartnerEdge, ByDesign, SAP Business ByDesign, and Percent | change since previous year in percentage points constant-currency change since previous year € millions | percent | change since previous year € millions | change since previous year other SAP products and services and the associated logos are trade or service or registered trade or service Rest of market 51.9 SAP 28.4 Training 410 Software 3,407 USA 2,706 Germany 2,004 1,077 1,311 1,496 1,871 1,919 marks of SAP AG in Germany and many other countries ț ț ț ț ț ț –5.7% +4% 4% | +7% | +11% 33% | +13% | +18% 26% | +4% 20% | +5% +112% +22% +14% +25% +3% in the world. All other mentioned product and service Consulting 2,221 names are marks or registered marks of their respective ț 22% | –1% | +2% 1,600 companies. Rest of Rest of EMEA 3,386 1,200 Other service 113 ț ț Subscription Americas 871 ț 33% | +13% 800 This English translation of the SAP Annual Report is Oracle 16.5 1% | +18% | +23% and other software- ț 9% | +12% 400 provided for convenience only; the German original is +1.4% Other 71 related service 182 ț Rest of 0 2% | +41% | +46% definitive.