SAP AG

SAP AG is the world's leading provider of business software, SAP delivers products and services that help accelerate business innovation for company customers. Founded in 1972, Walldorf, Germany, SAP has a rich history of innovation and growth that has made us a true industry leader. SAP has approximately 46,100 customers in over 120 countries and employs more than 43,800 employees in more than 50 countries in the Europe, Middle East, and Africa (EMEA), Americas, and Asia Pacific Japan regions. SAP is listed on several exchanges, including the Frankfurt Stock Exchange (FWB) and NYSE under the symbol SAP. (ISIN: DE0007164600).

Over the course of three decades, SAP has evolved from a small, regional enterprise into a world-class international company:

- The 1970s: A Real-Time Vision

In 1972, five former IBM employees – Dietmar Hopp, Hans-Werner Hector, Hasso Plattner, Klaus Tschira, and Claus Wellenreuther – launch a company called Systems Applications and Products in Data Processing in Mannheim, Germany. Their vision: to develop standard application software for real-time business processing.
One year later, the first financial accounting software is complete, forming the basis for the continuous development of other software components in what later came to be known as the "R/1 system." "R" stands for real-time data processing.

- The 1980s: Rapid Growth

SAP moves into the company's first building on Max-Planck-Strasse in an industrial park in Walldorf, near Heidelberg. Our software development area and its 50 terminals are all now under one roof. Fifty of the 100 largest German industrial firms are already SAP customers. By the middle of the decade, SAP founds its first sales organization outside Germany, in Austria. The company makes its first appearance at the CeBIT computer fair in Hanover, Germany. Revenues reach DM 100 million (around $52 million), earlier than expected. In August 1988, SAP GmbH becomes SAP AG. Starting on November 4, 1.2 million shares are listed on the Frankfurt and Stuttgart stock exchanges. With the founding of subsidiaries in Denmark, Sweden, Italy, and the United States, SAP's international expansion takes a leap forward.

- The 1990s: A New Approach to Software and Solutions

A growing number of subsidiaries are managed out of Walldorf. The new Sales and Development Center in Walldorf officially opens it doors. It symbolizes the global success of the company. In our twentieth year, our business outside Germany exceeds 50 percent of total sales for the first time. Henning Kagermann becomes Co-Chairman and CEO of SAP AG with Hasso Plattner. On August 3, 1998, the letters S-A-P appear for the first time on the Big Board at the New York Stock Exchange (NYSE), the largest stock exchange in the world.

The 2000s: Innovation for the New Millennium

With the Internet, the user becomes the focus of software applications. SAP develops SAP Workplace and paves the way for the idea of an enterprise portal and role-specific access to information. Currently, more than 12 million users work each day with SAP solutions. There are now 121,000 installations worldwide, more than 1,500 SAP partners, over 25 industry-specific business solutions, and more than 46,100 customers in 120 countries. SAP is the world's third-largest independent software vendor.

Today, with enterprise services-oriented architecture and the underlying integration and application platform, SAP NetWeaver, SAP is providing our customers with solutions for end-to-end business processes. With SAP NetWeaver, your company can integrate people, information, and processes within the company and beyond.

SAP Subsidiaries

Business Objects – Provides business intelligence software and consulting services to organizations of all sizes, so they can gain the insights necessary to improve decision making and enterprise performance.

SAP Hosting – Manages the operation of SAP Business Suite solutions, identifies areas of optimization, and helps customers realize the full potential of their investments. SAP Hosting will tailor outsourcing services specifically for a business – and provide complete support, 24 hours a day, seven days a week.

SAP Manage – Provides SAP Business One, a business management solution for small and midsize customers. SAP Manage functions as the global development unit and knowledge center for SAP Business One. SAP Manage is also responsible for marketing and supporting the product within the Israeli market.

SAP SI – Provides enterprises and public institutions with end-to-end IT services. This international consulting company implements and operates IT systems in an SAP environment and integrates heterogeneous system landscapes – even across company boundaries.

Steeb – Provides software products, consulting services, education, hardware, and networks for the midsize market. Steeb's large network of business partners helps us provide qualified service – wherever our customers need it.

Markets

SAP operate it business in three principal geographic regions – EMEA, which represents Europe, Middle East and Africa; the Americas, which represents both North America and Latin America; and Asia Pacific (APA), which represents Japan, Australia and parts of Asia. In 2005, the EMEA region accounted for 53% of total revenues, Americas for 35%, and APA for 12%.

Every industry operates according to distinct processes and practices. SAP has identified six industry sectors in order to focus company product development efforts on the key industries that represent our existing and potential customers – and to provide best business practices and specific integrated business solutions to those industries. early two-thirds of SAP customers are classified as small and midsize enterprises (SMEs). SAP provides a broad range of business solutions for SMEs, which we define as companies with fewer than 2,500 employees or translated revenue of less than U.S.$1 billion.

- Process industries 1,765,909 - 21%
- Discrete industries 1,986,113 - 23%
- Consumer industries 1,457,006 - 17%
- Service industries 1,946,026 - 23%
- Financial services 543,360 - 6%
- Public services 814,015 - 10%

Meeting of Shareholders

June 3 – Annual General Meeting of Shareholders.

SAP Growth Strategy

Key growth areas include:

- Small and midsize enterprises - IT spending among small and midsize enterprises (SMEs) with up to 2,500 employees currently outpaces that of larger companies – a trend that is expected to accelerate in the years ahead. SAP already leads the world with IT solutions for this market. In 2005, some 30% of order entry was achieved with SMEs. The company's aim is to grow that share to a range of 40% - 45% by 2010.

- Key industries - SAP is the leading provider of enterprise software solutions in virtually every major industry. Going forward, we will continue to refine and expand our solutions for more than 25 industries. Through new solutions, strategic partnerships, and small acquisitions to enhance our solution portfolio, we will expand our capabilities in key industries that represent exceptional opportunities for growth, namely retail, financial services, public sector, and healthcare.

- Emerging economies - SAP continues to achieve outstanding gains in virtually all of the geographic areas in which we operate. In addition, we are making a special effort to increase our presence in several of the world's emerging economies, including Brazil , Russia , India , and China , which are experiencing economic growth at rates well above global averages. In 2005, SAP's revenue in those countries grew by 30%.

- Safe Passage - Safe Passage programs are comprehensive offerings that address the concerns of customers facing the uncertainties arising out of market consolidation activities and resulting end-of-life of competitive solutions.

- Extended business-user market - By delivering Duet, SAP xApp Analytics, and the new SAP CRM on-demand solution, SAP is reaching a broader array of business professionals with tools that suit their particular requirements – in effect, expanding our potential market to include virtually 100% of all business users.

- Platform market - Where SAP is traditionally known for its application software, we are now adding a reputation for leadership in the platform space.

Corporate Governance

The Executive Board is the governing body of SAP

Henning Kagermann - Chief Executive Office. Joined SAP: 1982. Special responsibilities: Overall responsibility for SAP's strategy and business development; product development for large enterprises; global communications; internal audit; and top talent management.
Léo Apotheker - Deputy Chief Executive Officer. Joined SAP: 1988. Special responsibilities: Sales, consulting, education, marketing, partner management.
Werner Brandt - Chief Financial Officer. Joined SAP: 2001. Special responsibilities: Finance and administration; shared services; SAP Ventures; global intellectual property; mergers & acquisitions
Claus E. Heinrich - Labor Relations Director. Joined SAP: 1987. Special responsibilities: Global human resources; internal SAP IT; SAP Labs network; internal business processes
Gerhard Oswald - Joined SAP: 1981. Special responsibilities: Global service and support; SAP Business ByDesign.
John Schwarz - Chief Executive Officer of Business Objects. Joined SAP: 2008. Special responsibilities: Business Objects business unit, including product development, go-to-market, and services and support.
Peter Zencke - Joined SAP: 1984. Special responsibilities: Application platform; research; SAP Business ByDesign

Supervisory Board

The Supervisory Board advises and supervises the Executive Board. The number of members in – and the composition of – a Supervisory Board depend upon the size of a German company. SAP's Supervisory Board currently comprises eight members elected by the shareholders at their General Meeting and eight members elected by the employees.

Prof. Dr. h.c. mult. Hasso Plattner - Chairman of the Supervisory Board, Lars Lamadé - Deputy Chairman, Pekka Ala-Pietilä, Thomas Bamberger - Head of Operations Global Services & Support, Chief Controlling Officer Research & Breakthrough Innovation, Chief Controlling Officer Global Service & Support; Panagiotis Bissiritsas - Support Expert, Willi Burbach - Developer, and others.

Contact points for Investors