6-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

July 28, 2011

Commission file number:

1-14251

SAP AG

(Exact name of registrant as specified in its charter)

SAP CORPORATION
(Translation of registrant’s name into English)

Dietmar-Hopp-Allee 16
69190 Walldorf
Federal Republic of Germany
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ Form 40-F o

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-          .

TABLE OF CONTENTS

Exhibit 99.1

Exhibit 99.2

Exhibit 99.3

SAP AG

FORM 6-K

On July 26, 2011, SAP AG, a stock corporation organized under the laws of the Federal Republic of Germany (“SAP”), issued a press release (the “Press Release”) announcing that SAP refines its outlook for non-IFRS software and software-related service revenue at constant currencies and non-IFRS operating profit at constant currencies. The Press Release is attached as Exhibit 99.1 hereto and incorporated by reference herein.

On July 26, 2011, SAP issued another press release (the ”Press Release”) announcing its financial results for the second quarter ended June 30, 2011. The Press Release is attached as Exhibit 99.2 hereto and incorporated by reference herein.

On July 27, 2011, SAP filed a quarterly report with Deutsche Boerse AG for the second quarter ended June 30, 2011 (the “Quarterly Report”). The Quarterly Report is attached as Exhibit 99.3 hereto and incorporated by reference herein.

The Press Releases and the Quarterly Report disclose certain non-IFRS measures. These measures are not prepared in accordance with IFRS and are therefore considered non-IFRS financial measures. The non-IFRS financial measures that we report should be considered in addition to, and not as substitutes for or superior to, revenue, operating income, cash flows, or other measures of financial performance prepared in accordance with IFRS.

Please refer to Explanations of Non-IFRS Measures online (www.sap.com/about/investor/index.epx) for further information regarding the non-IFRS measures.

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 (the “SEC”), including SAP’s most recent Annual Report on Form 20-F for 2010 filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

2

EXHIBITS

Exhibit No.	Exhibit
99.1	Press Release dated July 26, 2011
99.2	Press Release dated July 26, 2011
99.3	Quarterly Report dated July 27, 2011

3

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SAP AG (Registrant)
By:	/s/ Werner Brandt
	Name:	Dr. Werner Brandt
	Title:	CFO
By:	/s/ Christoph Huetten
	Name:	Dr. Christoph Huetten
	Title:	Chief Accounting Officer

Date: July 28, 2011

4

EXHIBIT INDEX

Exhibit No.	Exhibit
99.1	Press Release dated July 26, 2011
99.2	Press Release dated July 26, 2011
99.3	Quarterly Report dated July 27, 2011

5

EX-99.1

Exhibit 99.1

For Immediate Release
July 26, 2011

SAP Refines Outlook for Non-IFRS Software and Software-Related Service Revenue at Constant Currencies and Non-IFRS Operating Profit at Constant Currencies

WALLDORF, Germany — July 26, 2011 — Today, SAP AG (NYSE: SAP) has changed its outlook for the full-year 2011. The Company has refined the outlook for Non-IFRS software and software-related service revenue at constant currencies and non-IFRS operating profit at constant currencies.

• The Company reaffirmed that it expects full-year 2011 non-IFRS software and software-related service revenue to increase in a range of 10% — 14% at constant currencies (2010: €9.87 billion), but the Company now expects to reach the high end of the range.

• The Company reaffirmed that it expects full-year 2011 non-IFRS operating profit to be in a range of €4.45 billion — €4.65 billion at constant currencies (2010: €4.01 billion), but the Company now expects to reach the high end of the range, resulting in 2011 non-IFRS operating margin increasing in a range of 0.5 — 1.0 percentage points at constant currencies (2010: 32.0%).

• The Company reaffirmed for the full-year 2011 that it projects an IFRS effective tax rate of 27.0% — 28.0% (2010: 22.5%) and a non-IFRS effective tax rate of 27.5% — 28.5% (2010: 27.3%).

The outlook change is based on SAP’s improved visibility into the second half of the year. The outlook change takes into account the strong performance in the second quarter with 35% growth in software revenue at constant currencies, 20% growth in Non-IFRS software and software related service revenue at constant currencies, 26% growth in Non-IFRS operating income resulting in a 1.5 percentage point increase in Non-IFRS operating margin at constant currencies for the second quarter of 2011.

Page 2

The Company will announce full results for the second quarter and six month ended June 30^th, 2011 later on today.

EXPLANATIONS:

For a more detailed description of these adjustments and their limitations as well as our constant currency and free cash flow figures see Explanations of Non-IFRS Measures online (www.sap.com/about/investor/index.epx).

Conference Call

SAP senior management will host a conference call with investors and financial analysts on Wednesday, July 27^th, 2011 at 2:00 PM (CET) / 1:00 PM (GMT) / 8:00 AM (Eastern) / 5:00 AM (Pacific). The conference call will be web cast live on the Company’s website at www.sap.com/investor and will be available for replay.

# # #

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.

^© 2011 SAP AG. All rights reserved.

SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.

Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company.Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company.

All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

For more information, financial community only:

Stefan Gruber	+49 (6227) 7-44872	investor@sap.com, CET
Marty Cohen	+1 (212) 653-9619	investor@sap.com, ET

EX-99.2

Exhibit 99.2

For Immediate Release
July 26, 2011

SAP Reports 35% Growth in Software Revenue at Constant Currencies and 20% Growth in Non-IFRS Software and Software-Related Service Revenue at Constant Currencies for the Second Quarter

• 6th Consecutive Quarter of Double-Digit Growth in Non-IFRS Software and Software Related Service Revenue

• Second Quarter Non-IFRS Operating Profit Increased 26% at Constant Currencies Resulting in a 1.5 Percentage Point Increase in Non-IFRS Operating Margin at Constant Currencies

• Second Quarter Non-IFRS Earnings Per Share Increased 26%

WALLDORF, Germany — July 26, 2011 — SAP AG (NYSE: SAP) today announced its financial results for the second quarter ended June 30, 2011.

“We are pleased to report another strong quarter,” said Werner Brandt, CFO of SAP AG. “The strong customer demand for our industry leading innovations positions us well to achieve our goal of at least €20 billion in total annual revenue and a 35% operating margin by the middle of the decade, as well as for the long term.”

“The team delivered another outstanding quarter as customers in all regions and across every industry embrace the power of SAP’s strategy,” said Bill McDermott, co-CEO of SAP AG. “Our innovations such as SAP HANA along with our mobility and business analytics solutions are fueling our pipeline as customers want to grow their business and solve their most pressing industry-specific challenges. Our consistent results and ever-expanding ecosystem demonstrate that SAP is the better choice for customers of all sizes.”

“We are witnessing a structural change in the IT market — customers are shifting more of their investments toward software as it continues to become a larger and more important component of the overall technology stack. As a result, we are seeing strong demand from customers,” said Jim Hagemann Snabe, Co-CEO of SAP. “We focused our strategy on innovation at the right time and are now reshaping the industry with our mobility, in-memory and cloud solutions. Innovation is driving growth again at SAP.”

SAP Reports Second Quarter 2011 Results Page 2

FINANCIAL HIGHLIGHTS — Second Quarter 2011

	Second Quarter 20111)
	IFRS							Non-IFRS2)
															% change
€ million, unless					%							%			const.
otherwise stated	Q2 2011		Q2 2010		change			Q2 2011		Q2 2010		change			curr.3)
Software revenue		802		637		26	%		802		637		26	%		35	%
Support revenue		1,681		1,526		10	%		1,689		1,526		11	%		15	%
Software and software-related service revenue		2,579		2,258		14	%		2,587		2,258		15	%		20	%
Total revenue		3,300		2,894		14	%		3,308		2,894		14	%		20	%
Total operating expenses		-2,443		-2,120		15	%		-2,289		-2,040		12	%		17	%
Operating profit		857		774		11	%		1,019		854		19	%		26	%
Operating margin (%)		26.0		26.7	-0.7pp				30.8		29.5	1.3pp				1.5pp
Profit after tax		588		491		20	%		703		562		25	%
Basic earnings per share (€)		0.49		0.41		20	%		0.59		0.47		26	%
Number of employees (FTE)		54,043		48,021		13	%		na		na		na			na

1)	All figures are unaudited.
2)	Adjustments in the revenue line items are for the support revenue that would have been recognized had the acquired entities remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges, share-based compensation expenses, restructuring and discontinued activities.
3)	Constant currency revenue and operating profit figures are calculated by translating revenue and operating income of the current period using the average exchange rates from the previous year’s respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s respective period.

Revenue — Second Quarter 2011

• IFRS software revenue was €802 million (2010: €637 million), an increase of 26% (35% at constant currencies).

• IFRS software and software-related service revenue was €2.58 billion (2010: €2.26 billion), an increase of 14%. Non-IFRS software and software-related service revenue was €2.59 billion (2010: €2.26 billion), an increase of 15% (20% at constant currencies).

• IFRS total revenue was €3.30 billion (2010: €2.89 billion), an increase of 14%. Non-IFRS total revenue was €3.31 billion (2010: €2.89 billion), an increase of 14% (20% at constant currencies).

Second quarter 2011 non-IFRS software and software-related service revenue and total revenue exclude a deferred support revenue write-down from acquisitions of €8 million.

Profit — Second Quarter 2011

• IFRS operating profit was €857 million (2010: €774 million), an increase of 11%. Non-IFRS operating profit was €1.02 billion (2010: €854 million), an increase of 19% (26% at constant currencies).

SAP Reports Second Quarter 2011 Results Page 3

• IFRS operating margin was 26.0% (2010: 26.7%), a decrease of 0.7 percentage points. Non-IFRS operating margin was 30.8% (2010: 29.5%), or 31.0% at constant currencies, an increase of 1.3 percentage points (1.5 percentage points at constant currencies).

• IFRS profit after tax was €588 million (2010: €491 million), an increase of 20%. Non-IFRS profit after tax was €703 million (2010: €562 million), an increase of 25%. IFRS basic earnings per share was €0.49 (2010: €0.41), an increase of 20%. Non-IFRS basic earnings per share was €0.59 (2010: €0.47), an increase of 26%. The IFRS effective tax rate in the second quarter of 2011 was 26.9% (2010: 27.4%). The non-IFRS effective tax rate in the second quarter of 2011 was 27.2% (2010: 26.7%).

Second quarter 2011 non-IFRS operating profit excludes a deferred support revenue write-down from acquisitions of €8 million, acquisition-related charges of €111 million, expenses from discontinued activities of €10 million, share-based compensation expenses of €32 million and restructuring expenses of €1 million (2010: €0 million, €65 million, €2 million, €12 million and €1 million). Second quarter 2011 non-IFRS profit after tax and non-IFRS basic earnings per share exclude a deferred support revenue write-down from acquisitions of €5 million, acquisition-related charges of €75 million, expenses from discontinued activities of €10 million, share-based compensation expenses of €24 million and restructuring expenses of €1 million (2010: €0 million, €49 million, €12 million, €9 million and €1 million ) net of tax.

FINANCIAL HIGHLIGHTS — Six Months 2011

	First Half 20111)
	IFRS							Non-IFRS2)
															% change
€ million, unless					%							%			const.
otherwise stated	1H 2011		1H 2010		change			1H 2011		1H 2010		change			curr.3)
Software revenue		1,385		1,101		26	%		1,385		1,101		26	%		31	%
Support revenue		3,336		2,920		14	%		3,361		2,920		15	%		16	%
Software and software-related service revenue		4,906		4,205		17	%		4,931		4,205		17	%		19	%
Total revenue		6,324		5,403		17	%		6,349		5,403		18	%		19	%
Total operating expenses		-4,870		-4,072		20	%		-4,551		-3,933		16	%		17	%
Operating profit		1,454		1,331		9	%		1,798		1,470		22	%		24	%
Operating margin (%)		23.0		24.6	-1.6pp				28.3		27.2	1.1pp				1.2pp
Profit after tax		991		878		13	%		1,231		1,000		23	%
Basic earnings per share (€)		0.83		0.74		12	%		1.04		0.84		24	%
Number of employees (FTE)		54,043		48,021		13	%		na		na		na			na

1)	All figures are unaudited.
2)	Adjustments in the revenue line items are for the support revenue that would have been recognized had the acquired entities remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges, share-based compensation expenses, restructuring and discontinued activities.
3)	Constant currency revenue and operating profit figures are calculated by translating revenue and operating income of the current period using the average exchange rates from the previous year’s respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s respective period.

SAP Reports Second Quarter 2011 Results Page 4

Revenue — Six Months 2011

• IFRS software revenue was €1.39 billion (2010: €1.10 billion), an increase of 26% (31% at constant currencies).

• IFRS software and software-related service revenue was €4.91 billion (2010: €4.21 billion), an increase of 17%. Non-IFRS software and software-related service revenue was €4.93 billion (2010: €4.21 billion), an increase of 17% (19% at constant currencies).

• IFRS total revenue was €6.32 billion (2010: €5.40 billion), an increase of 17%. Non-IFRS total revenue was €6.35 billion (2010: €5.40 billion), an increase of 18% (19% at constant currencies).

First- half 2011 Non-IFRS software and software-related service revenue as well as total revenue exclude a deferred support revenue write-down from acquisitions of €25 million (2010: €0 million).

Profit — Six Months 2011

• IFRS operating profit was €1.45 billion (2010: €1.33 billion), an increase of 9%. Non-IFRS operating profit was €1.80 billion (2010: €1.47 billion), an increase of 22% (24% at constant currencies).

• IFRS operating margin was 23.0% (2010: 24.6%), a decrease of 1.6 percentage points. Non-IFRS operating margin was 28.3% (2010: 27.2%), or 28.4% at constant currencies, an increase of 1.1 percentage points (1.2 percentage points at constant currencies).

• IFRS profit after tax was €991 million (2010: €878 million), an increase of 13%. Non-IFRS profit after tax was €1.23 billion (2010: €1.00 billion), an increase of 23%. IFRS basic earnings per share was €0.83 (2010: €0.74), an increase of 12%. Non-IFRS basic earnings per share was €1.04 (2010: €0.84), an increase of 24%.

First-half 2011 non-IFRS operating profit excludes a deferred support revenue write-down from acquisitions of €25 million, acquisition-related charges of €222 million, expenses from discontinued activities of €12 million, share-based compensation expenses of €84 million and restructuring expenses of €1 million (2010: €0 million, €119 million, €2 million, €17 million and €1 million). First-half 2011 non-IFRS profit after tax and non-IFRS basic earnings per share exclude a deferred support revenue write-down from acquisitions of €16 million, acquisition-related charges of €150 million, expenses from discontinued activities of €12 million, share-based compensation expenses of €61 million and restructuring expenses of €1 million (2010: €0 million, €90 million, €18 million, €13 million and €1 million) net of tax.

Cash Flow — Six Months 2011

Operating cash flow was €2.27 billion (2010: €1.28 billion), an increase of 77%. Free cash flow was €2.02 billion (2010: €1.16 billion), an increase of 75%. Free cash flow was 32% of total revenue (2010: 21%). At June 30, 2011, SAP had a total group liquidity of €4.40 billion

SAP Reports Second Quarter 2011 Results Page 5

(December 31, 2010: €3.53 billion), which includes cash and cash equivalents and short term investments. Net liquidity at June 30, 2011 was €531 million compared to — €850 at December 31, 2010. This is mainly due the positive development of the operating cash flow in the first six months of 2011.

Business Outlook

The Company is providing the following outlook for the full-year 2011, which has changed from the previous outlook provided on April 28, 2011. The Company has refined the outlook for Non-IFRS software and software-related service revenue at constant currencies and non-IFRS operating profit at constant currencies.

• The Company reaffirmed that it expects full-year 2011 non-IFRS software and software-related service revenue to increase in a range of 10% — 14% at constant currencies (2010: €9.87 billion), but the Company now expects to reach the high end of the range.

• The Company reaffirmed that it expects full-year 2011 non-IFRS operating profit to be in a range of €4.45 billion — €4.65 billion at constant currencies (2010: €4.01 billion), but the Company now expects to reach the high end of the range, resulting in 2011 non-IFRS operating margin increasing in a range of 0.5 — 1.0 percentage points at constant currencies (2010: 32.0%).

• The Company reaffirmed for the full-year 2011 that it projects an IFRS effective tax rate of 27.0% — 28.0% (2010: 22.5%) and a non-IFRS effective tax rate of 27.5% — 28.5% (2010: 27.3%).

Major Customer Wins

In the second quarter of 2011, SAP closed the following major contracts.

EMEA

Nycomed Danmark ApS, GK ALMI, Fressnapf Tiernahrungs GmbH, Boehringer Ingelheim Pharma GmbH & Co. KG, ZF Friedrichshafen AG, Rieter Machine Works Ltd.

Americas

Servicios Liverpool, S.A. de C.V., Hydro One Networks Inc., Medtronic, Inc., Molex Incorporated, Johns Hopkins, Southwest Airlines Company.

Asia Pacific/Japan

Fortescue Metals Group Ltd, China National Biotec Group, Krishak Bharati Cooperative Limited, Centre For Railway Information Systems (CRIS), Hyundai Logiem Co., Ltd , Central Pattana Public Co., Ltd.

SAP Reports Second Quarter 2011 Results Page 6

SAP Business ByDesign

Treveri Basketball AG, Ströhmann Steinkult GmbH, Bruno Söhnle GmbH, Agilita, College of Management and Technology, JBM Shelters, Aerospace Engineers, Channel Tech, RTC Industries.

Q2 2011 Interim Report

SAP’s Q2 2011 Interim Report was published today and is available at www.sap.com/investor for download. The interim report includes an update on SAP’s sustainability performance.

Webcast

SAP senior management will host a conference call Wednesday, July 27th at 2:00 PM (CET) / 1:00 PM (GMT) / 8:00 AM (Eastern) / 5:00 AM (Pacific). The conference call will be web cast live on the Company’s website at www.sap.com/investor and will be available for replay.

About SAP

As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device — SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 172,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

# # #

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.

^© 2011 SAP AG. All rights reserved.

SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.

Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company.Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company.

All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

Note to editors:

To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels. To view video stories on diverse topics, visit www.sap-tv.com. From this site, you can embed videos into your own Web pages, share video via e-mail links and subscribe to RSS feeds from SAP TV.

SAP Reports Second Quarter 2011 Results Page 8

For customers interested in learning more about SAP products:
Global Customer Center: +49 180 534-34-24
United States Only: 1 (800) 872-1SAP (1-800-872-1727)

For more information, press only:
Christoph Liedtke +49 (6227) 7-50383 christoph.liedtke@sap.com, CET
Guenter Gaugler +49 (6227) 7-65416 guenter.gaugler@sap.com, CET
Jim Dever +1 (610) 661-2161 james.dever@sap.com, ET
Lynn Ong +65 6768 6439 lynn.ong@sap.com, SGT (GMT +8)

For more information, financial community only:
Stefan Gruber +49 (6227) 7-44872 investor@sap.com, CET
Marty Cohen +1 (212) 653-9619 mailto:investor@sap.com, ET

Follow SAP Investor Relations on Twitter at @sapinvestor.

Appendix — Financial Information to Follow

FINANCIAL INFORMATION
FOR THE SECOND QUARTER 2011
(Condensed and Unaudited)

	Page
Financial Statements (IFRS)
Income Statements — Quarter		F1
Income Statements — Six Months		F2
Statements of Financial Position		F3
Statements of Cash Flows		F4
Supplementary Financial Information
Reconciliations from Non-IFRS Numbers to IFRS Numbers	F5 to F6
Revenue by Region	F7 to F8

Financial Statements (IFRS)

CONSOLIDATED INCOME STATEMENTS
for the three months ended June 30

€ millions, unless otherwise stated	2011		2010		Change in %
Software revenue		802		637		26
Support revenue		1,681		1,526		10
Subscription and other software-related service revenue		96		95		1
Software and software-related service revenue		2,579		2,258		14
Consulting revenue		579		528		10
Other service revenue		142		108		31
Professional services and other service revenue		721		636		13
Total revenue		3,300		2,894		14
Cost of software and software-related services		-495		-413		20
Cost of professional services and other services		-558		-497		12
Research and development		-468		-397		18
Sales and marketing		-743		-658		13
General and administration		-170		-156		9
Restructuring		-1		-1		0
TomorrowNow litigation		-10		-2		> 100
Other operating income/expense, net		2		4		-50
Total operating expenses		-2,443		-2,120		15
Operating profit		857		774		11
Other non-operating income/expense, net		-35		-86		- 59
Finance income		20		12		67
Finance costs		-38		-24		58
Financial income, net		-18		-12		50
Profit before tax		804		676		19
Income tax expense		-216		-185		17
Profit after tax		588		491		20
— Profit attributable to non-controlling interests		1		0		N/A
— Profit attributable to owners of parent		587		491		20
Earnings per share, basic in €*		0.49		0.41		20
Earnings per share, diluted in €*		0.49		0.41		20

* For the three months ended June 30, 2011 and 2010 the weighted average number of shares were 1,189 million (Diluted: 1,189 million) and 1,188 million (Diluted: 1,189 million), respectively (treasury stock excluded).

F1

CONSOLIDATED INCOME STATEMENTS
for the six months ended June 30

€ millions, unless otherwise stated	2011		2010		Change in %
Software revenue		1,385		1,101		26
Support revenue		3,336		2,920		14
Subscription and other software-related service revenue		185		184		1
Software and software-related service revenue		4,906		4,205		17
Consulting revenue		1,148		1,007		14
Other service revenue		270		191		41
Professional services and other service revenue		1,418		1,198		18
Total revenue		6,324		5,403		17
Cost of software and software-related services		-990		-812		22
Cost of professional services and other services		-1,134		-948		20
Research and development		-966		-790		22
Sales and marketing		-1,420		-1,215		17
General and administration		-347		-304		14
Restructuring		-1		-1		0
TomorrowNow litigation		-12		-2		> 100
Other operating income/expense, net		0		0		0
Total operating expenses		-4,870		-4,072		20
Operating profit		1,454		1,331		9
Other non-operating income/expense, net		-34		- 122		-72
Finance income		49		27		81
Finance costs		-81		- 39		> 100
Financial income, net		-32		-12		> 100
Profit before tax		1,388		1,197		16
Income tax expense		-397		-319		24
Profit after tax		991		878		13
— Profit attributable to non-controlling interests		1		1		0
— Profit attributable to owners of parent		990		877		13
Earnings per share, basic in €*		0.83		0.74		12
Earnings per share, diluted in €*		0.83		0.74		12

* For the six months ended June 30, 2011 and 2010 the weighted average number of shares were 1,188 million (Diluted: 1,189 million) and 1,188 million (Diluted: 1,189 million), respectively (treasury stock excluded).

F2

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
as at June 30, 2011 and December 31, 2010

€ millions	2011		2010
Cash and cash equivalents		3,842		3,518
Other financial assets		721		158
Trade and other receivables		2,738		3,099
Other non-financial assets		250		181
Tax assets		129		187
Total current assets		7,680		7,143
Goodwill		8,213		8,428
Intangible assets		2,107		2,376
Property, plant, and equipment		1,463		1,449
Other financial assets		480		475
Trade and other receivables		78		78
Other non-financial assets		36		31
Tax assets		125		122
Deferred tax assets		714		737
Total non-current assets		13,216		13,696
Total assets		20,896		20,839

€ millions	2011		2010
Trade and other payables		783		923
Tax liabilities		108		164
Financial liabilities		136		142
Other non-financial liabilities		1,113		1,726
Provision TomorrowNow litigation		929		997
Other provisions		358		290
Provisions		1,287		1,287
Deferred income		2,161		911
Total current liabilities		5,588		5,153
Trade and other payables		37		30
Tax liabilities		418		369
Financial liabilities		3,945		4,449
Other non-financial liabilities		90		85
Provisions		244		292
Deferred tax liabilities		513		574
Deferred income		64		63
Total non-current liabilities		5,311		5,862
Total liabilities		10,899		11,015
Issued capital		1,228		1,227
Share premium		394		337
Retained earnings		10,033		9,767
Other components of equity		-294		-142
Treasury shares		-1,374		-1,382
Equity attributable to owners of parent		9,987		9,807
Non-controlling interests		10		17
Total equity		9,997		9,824
Equity and liabilities		20,896		20,839

F3

CONSOLIDATED STATEMENTS OF CASH FLOWS
for the six months ended June 30

€ millions	2011		2010
Profit after tax		991		878
Adjustments to reconcile profit after taxes to net cash provided by operating
Depreciation and amortization		357		225
Income tax expense		396		319
Finance income and finance costs, net		32		12
Gains/losses on disposals of non-current assets		2		1
Decrease/increase in sales and bad debt allowances on trade receivables		8		6
Other adjustments for non-cash items		8		18
Decrease/increase in trade receivables		241		31
Decrease/increase in other assets		-73		-197
Decrease/increase in trade payables, provisions and other liabilities		-646		-675
Decrease/increase in deferred income		1,353		1,108
Cashflows due to TomorrowNow litigation		-3		3
Interest paid		-77		-28
Interest received		37		19
Income taxes paid, net of refunds		-356		-438
Net cash flows from operating activities		2,270		1,282
Purchase of intangible assets and property, plant, equipment and business combinations		-248		-125
Proceeds from sales of intangible assets or property, plant, and equipment		18		17
Purchase of equity or debt instruments of other entities		-730		-651
Proceeds from sales of equity or debt instruments of other entities		186		689
Net cash flows from investing activities		-774		-70
Purchase of non-controlling interests		-21		0
Dividends paid		-713		-594
Purchase of treasury shares		-158		-120
Proceeds from reissuance of treasury shares		157		85
Proceeds from issuing shares (share-based compensation)		34		21
Proceeds from borrowings		519		1,063
Repayments of borrowings		-1,005		-6
Purchase of equity-based derivative instruments		-1		-14
Proceeds from exercise of equity-based derivative financial instruments		0		4
Net cash flows from financing activities		-1,188		439
Effect of foreign exchange rates on cash and cash equivalents		16		70
Net decrease/increase in cash and cash equivalents		324		1,721
Cash and cash equivalents at the beginning of the period		3,518		1,884
Cash and cash equivalents at the end of the period		3,842		3,605

F4

Supplementary Financial Information

RECONCILIATIONS FROM NON-IFRS NUMBERS TO IFRS NUMBERS
(Unaudited)

The following table presents a reconciliation from our non-IFRS numbers (including our non-IFRS at constant currency numbers) to the respective most comparable IFRS numbers. Note: Our non-IFRS numbers are not prepared under a comprehensive set of accounting rules or principles.

	Three months ended June 30
	2011										2010						Change in %
									Non-IFRS												Non-IFRS
							Currency		constant												constant
€ millions, unless otherwise stated	IFRS		Adj.*		Non-IFRS*		impact**		currency**		IFRS		Adj.*		Non-IFRS*		IFRS		Non-IFRS*		currency**
Non-IFRS Revenue Numbers
Software revenue		802		0		802		58		860		637		0		637		26		26		35
Support revenue		1,681		8		1,689		64		1,753		1,526		0		1,526		10		11		15
Subscription and other software-related service revenue		96		0		96		2		98		95		0		95		1		1		3
Software and software-related service revenue		2,579		8		2,587		124		2,711		2,258		0		2,258		14		15		20
Consulting revenue		579		0		579		28		607		528		0		528		10		10		15
Other service revenue		142		0		142		6		148		108		0		108		31		31		37
Professional services and other service revenue		721		0		721		35		756		636		0		636		13		13		19
Total revenue		3,300		8		3,308		158		3,466		2,894		0		2,894		14		14		20
Non-IFRS Operating Expense Numbers
Cost of software and software-related services		-495		69		-426						-413		38		-375		20		14
Cost of professional services and other services		-558		11		-547						-497		2		-495		12		11
Research and development		-468		18		-450						-397		8		-389		18		16
Sales and marketing		-743		39		-704						-658		18		-640		13		10
General and administration		-170		6		-164						-156		10		-146		9		12
Restructuring		-1		1		0						-1		1		0		0		0
TomorrowNow litigation		-10		10		0						-2		2		0		>100		0
Other operating income/expense, net		2		0		2						4		0		4		-50		-50
Total operating expenses		-2,443		154		-2,289		-102		-2,391		-2,120		80		-2,040		15		12		17
Non-IFRS Profit Numbers
Operating profit		857		162		1,019		56		1,075		774		80		854		11		19		26
Other non-operating income/expense, net		-35		0		-35						-86		11		-75		-59		-53
Finance income		20		0		20						12		0		12		67		67
Finance costs		-38		0		-38						-24		0		-24		58		58
Finance income, net		-18		0		-18						-12		0		-12		50		50
Profit before tax		804		162		966						676		91		767		19		26
Income tax expense		-216		-47		-263						-185		-20		-205		17		28
Profit after tax		588		115		703						491		71		562		20		25
Profit attributable to non-controlling interests		1		0		1						0		0		0		N/A		N/A
Profit attributable to owners of parent		587		115		702						491		71		562		20		25
Non-IFRS Key Ratios
Operating margin in %		26.0				30.8				31.0		26.7				29.5		-0.7 pp		1.3 pp		1.5 pp
Effective tax rate in %		26.9				27.2						27.4				26.7	-0.5 pp		0.5 pp
Earnings per share, basic in €		0.49				0.59						0.41				0.47		20		26

F5

	Six months ended June 30
	2011										2010						Change in %
									Non-IFRS												Non-IFRS
							Currency		constant												constant
€ millions, unless otherwise stated	IFRS		Adj.*		Non-IFRS*		impact**		currency**		IFRS		Adj.*		Non-IFRS*		IFRS		Non-IFRS*		currency**
Non-IFRS Revenue Numbers
Software revenue		1,385		0		1,385		52		1,437		1,101		0		1,101		26		26		31
Support revenue		3,336		25		3,361		14		3,375		2,920		0		2,920		14		15		16
Subscription and other software-related service revenue		185		0		185		-1		184		184		0		184		1		1		0
Software and software-related service revenue		4,906		25		4,931		66		4,997		4,205		0		4,205		17		17		19
Consulting revenue		1,148		0		1,148		15		1,163		1,007		0		1,007		14		14		15
Other service revenue		270		0		270		2		272		191		0		191		41		41		42
Professional services and other service revenue		1,418		0		1,418		18		1,436		1,198		0		1,198		18		18		20
Total revenue		6,324		25		6,349		84		6,433		5,403		0		5,403		17		18		19
Non-IFRS Operating Expense Numbers
Cost of software and software-related services		-990		146		-844						-812		79		-733		22		15
Cost of professional services and other services		-1,134		24		-1,110						-948		3		-945		20		17
Research and development		-966		41		-925						-790		11		-779		22		19
Sales and marketing		-1,420		77		-1,343						-1,215		31		-1,184		17		13
General and administration		-347		18		-329						-304		13		-291		14		13
Restructuring		-1		1		0						-1		1		0		0		0
TomorrowNow litigation		-12		12		0						-2		2		0		> 100		0
Other operating income/expense, net		0		0		0						0		0		0		0		0
Total operating expenses		-4,870		319		-4,551		-56		-4,607		-4,072		139		-3,933		20		16		17
Non-IFRS Profit Numbers
Operating profit		1,454		344		1,798		28		1,826		1,331		139		1,470		9		22		24
Other non-operating income/expense, net		-34		0		-34						-122		17		-105		-72		-68
Finance income		49		0		49						27		0		27		81		81
Finance costs		-81		0		-81						-39		0		-39		> 100		> 100
Finance income, net		-32		0		-32						-12		0		-12		> 100		> 100
Profit before tax		1,388		344		1,732						1,197		157		1,354		16		28
Income tax expense		-397		-104		-501						-319		-35		-354		24		42
Profit after tax		991		240		1,231						878		122		1,000		13		23
Profit attributable to non-controlling interests		1		0		1						1		0		1		0		0
Profit attributable to owners of parent		990		240		1,230						877		122		999		13		23
Non-IFRS Key Ratios
Operating margin in %		23.0				28.3				28.4		24.6				27.2	-1.6 pp		1.1 pp		1.2 pp
Effective tax rate in %		28.6				28.9						26.6				26.1	2.0 pp		2.8 pp
Earnings per share, basic in €		0.83				1.04						0.74				0.84		12		24

*

Adjustments in the revenue line items are for support revenue that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges, share-based compensation expenses, restructuring expenses and discontinued activities.

**

Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year’s respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s respective period.

Differences may exist due to rounding.

F6

REVENUE BY REGION
(Unaudited)

The following table presents our IFRS and non-IFRS revenue by region based on customer location. The table also presents a reconciliation from our non-IFRS revenue (including our non-IFRS revenue at constant currency) to the respective most comparable IFRS revenue. Note: Our non-IFRS revenues are not prepared under a comprehensive set of accounting rules or principles.

	Three months ended June 30
	2011										2010						Change in %
									Non-IFRS												Non-IFRS
							Currency		constant												constant
€ millions	IFRS		Adj.*		Non-IFRS*		impact**		currency**		IFRS		Adj.*		Non-IFRS*		IFRS		Non-IFRS*		currency**
Software revenue by region
EMEA		322		0		322		5		327		241		0		241		34		34		36
Americas		318		0		318		45		363		269		0		269		18		18		35
Asia Pacific Japan		163		0		163		8		171		127		0		127		28		28		35
Software revenue		802		0		802		58		860		637		0		637		26		26		35
Software and software-related service revenue by region
Germany		397		0		397		0		397		360		0		360		10		10		10
Rest of EMEA		852		2		854		3		857		718		0		718		19		19		19
Total EMEA		1,249		2		1,251		3		1,254		1,078		0		1,078		16		16		16
United States		675		4		679		96		775		616		0		616		10		10		26
Rest of Americas		230		1		231		12		243		207		0		207		11		12		17
Total Americas		904		5		909		109		1,018		822		0		822		10		11		24
Japan		137		0		137		2		139		111		0		111		23		23		25
Rest of Asia Pacific Japan		289		0		289		11		300		247		0		247		17		17		21
Total Asia Pacific Japan		426		1		427		12		439		358		0		358		19		19		23
Software and software-related service revenue		2,579		8		2,587		124		2,711		2,258		0		2,258		14		15		20
Total revenue by region
Germany		554		0		554		0		554		506		0		506		9		9		9
Rest of EMEA		1,060		2		1,062		4		1,066		884		0		884		20		20		21
Total EMEA		1,614		2		1,616		4		1,620		1,390		0		1,390		16		16		17
United States		884		4		888		124		1,012		802		0		802		10		11		26
Rest of Americas		304		1		305		16		321		275		0		275		11		11		17
Total Americas		1,187		5		1,192		141		1,333		1,077		0		1,077		10		11		24
Japan		153		0		153		2		155		125		0		125		22		22		24
Rest of Asia Pacific Japan		345		0		345		13		358		302		0		302		14		14		19
Total Asia Pacific Japan		498		1		499		14		513		427		0		427		17		17		20
Total revenue		3,300		8		3,308		158		3,466		2,894		0		2,894		14		14		20

F7

	Six months ended June 30
	2011										2010						Change in %
									Non-IFRS												Non-IFRS
							Currency		constant												constant
€ millions	IFRS		Adj.*		Non-IFRS*		impact**		currency**		IFRS		Adj.*		Non-IFRS*		IFRS		Non-IFRS*		currency**
Software revenue by region
EMEA		573		0		573		2		575		459		0		459		25		25		25
Americas		548		0		548		46		594		440		0		440		25		25		35
Asia Pacific Japan		264		0		264		4		268		201		0		201		31		31		33
Software revenue		1,385		0		1,385		52		1,437		1,101		0		1,101		26		26		31
Software and software-related service revenue by region
Germany		728		0		728		0		728		671		0		671		8		8		8
Rest of EMEA		1,647		7		1,654		-16		1,638		1,409		0		1,409		17		17		16
Total EMEA		2,375		7		2,382		-16		2,366		2,079		0		2,079		14		15		14
United States		1,295		14		1,309		93		1,402		1,087		0		1,087		19		20		29
Rest of Americas		451		2		453		2		455		399		0		399		13		14		14
Total Americas		1,746		16		1,762		96		1,858		1,485		0		1,485		18		19		25
Japan		261		1		262		-11		251		208		0		208		25		26		21
Rest of Asia Pacific Japan		525		1		526		-4		522		432		0		432		22		22		21
Total Asia Pacific Japan		785		2		787		-14		773		641		0		641		22		23		21
Software and software-related service revenue		4,906		25		4,931		66		4,997		4,205		0		4,205		17		17		19
Total revenue by region
Germany		1,040		0		1,040		0		1,040		949		0		949		10		10		10
Rest of EMEA		2,057		7		2,064		-21		2,043		1,743		0		1,743		18		18		17
Total EMEA		3,097		7		3,104		-21		3,083		2,692		0		2,692		15		15		15
United States		1,703		14		1,717		120		1,837		1,422		0		1,422		20		21		29
Rest of Americas		596		2		598		2		600		522		0		522		14		15		15
Total Americas		2,299		16		2,315		122		2,437		1,944		0		1,944		18		19		25
Japan		292		1		293		-11		282		235		0		235		24		25		20
Rest of Asia Pacific Japan		636		1		637		-6		631		531		0		531		20		20		19
Total Asia Pacific Japan		929		2		931		-18		913		767		0		767		21		21		19
Total revenue		6,324		25		6,349		84		6,433		5,403		0		5,403		17		18		19

*	Adjustments in the revenue line items are for support revenue that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. See Explanations of Non-IFRS Measures for details.
**	Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year’s respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s respective period.

Differences may exist due to rounding.

For a more detailed description of these adjustments and their limitations as well as our constant currency and free cash flow figures see Explanations of Non-IFRS Measures online (www.sap.com/about/investor/index.epx).

F8

EX-99.3

Exhibit 99.3

INTERIM REPORT JANUARY — JUNE 2011

Table of Contents

Introductory Notes	3
Half Year Financial Statements (Condensed and Unaudited)
Interim Management Report	4
Consolidated Interim Financial Statements — IFRS	20
Responsibility Statement	42
Additional Financial Information (Unaudited)
IFRS and Non-IFRS-Financial Data	43
Multi-Quarter Summary	47
Additional Information
Financial Calendar, Investor Services, Addresses, and Imprint	48

3

Introductory Notes

This interim group report meets the requirements of German Accounting Standard No. 16 “Zwischenberichterstattung” (DRS 16). We prepared the financial data in the “Half Year Financial Statements (Condensed and Unaudited)” section for SAP AG and its subsidiaries in accordance with International Financial Reporting Standards (IFRSs) of the International Accounting Standards Board (IASB) and the respective interpretations by the International Financial Reporting Interpretations Committee (IFRIC) endorsed by the European Union (EU) up to June 30, 2011. For additional IFRS and non-IFRS information, see the ”Additional Financial Information (Unaudited)” section.

This interim group report complies with the legal requirements in accordance with the German Securities Trading Act (Wertpapierhandelsgesetz, WpHG) for a half year financial report, and comprises the interim review of SAP group operations, condensed interim consolidated financial statements, and the responsibility statement in accordance with the German Securities Trading Act, section 37w (2).

All of the information in this interim group report is unaudited. This means the information has been subject neither to any audit nor to any review by an independent auditor.

4     INTERIM REPORT JANUARY–JUNE 2011

INTERIM MANAGEMENT REPORT

FORWARD-LOOKING STATEMENTS

This half year financial report contains forward-looking statements and information based on the beliefs of, and assumptions made by, our management using information currently available to them. Any statements contained in this half year financial report that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current expectations, assumptions, and projections about future conditions and events. As a result, our forward-looking statements and information are subject to uncertainties and risks, many of which are beyond our control. If one or more of these uncertainties or risks materializes, or if management‘s underlying assumptions prove incorrect, our actual results could differ materially from those described in or inferred from our forward-looking statements and information.

We describe these risks and uncertainties in the “Risk and Opportunity Management” section, respectively in the there mentioned sources.

The words “aim,” “anticipate,” “assume,” “believe,” “continue,” “could,” “counting on,” “is confident,” “estimate,” “expect,” “forecast,” “guidance,” “intend,” “may,” “outlook,” “plan,” “project,” “predict,” “seek,” “should,” “strategy,” “want,” “will,” “would,” and similar expressions as they relate to us are intended to identify such forward-looking statements. Such statements include, for example, those made in the “Operating Results” section, the “Risk and Opportunity Management” section, our “Forecast for SAP”, and other forward-looking information appearing in other parts of this half year financial report. To fully consider the factors that could affect our future financial results both our Annual Report for December 31, 2010 and Annual Report on Form 20-F for December 31, 2010 should be considered, as well as all of our other filings with the Securities and Exchange Commission (SEC).

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date specified or the date of this report. Except where legally required, we undertake no obligation to publicly update or revise any forward-looking statements as a result of new information that we receive about conditions that existed upon issuance of this report, future events, or otherwise unless we are required to do so by law.

All of the information in this report relates to the situation on June 30, 2011, or the half year ended on that date unless otherwise stated.

NON-IFRS FINANCIAL INFORMATION

We present and discuss the reconciliation of non-IFRS measures to IFRS measures in the “Additional Financial Information (Unaudited)” section. For more information about non-IFRS measures, see www.sap.com/corporate-en/investors/reports.

INTERIM MANAGEMENT REPORT     5

ECONOMIC CONDITIONS

Global Economic Trends

The global economy grew strongly in the first half of 2011, according to the latest reports from the European Central Bank (ECB), the International Monetary Fund (IMF), and the Organisation for Economic Co-operation and Development (OECD). The upturn is now selfsustaining, with less restricted finance and growing household demand. However, progress was less lively in the second quarter than it had been in the first.

Despite the progress made, the pace remains uneven across the regions, and especially between the advanced and the emerging economies. In the advanced economies, production is below capacity, unemployment — although easing — remains stubbornly high, and growth is relatively sluggish. By contrast, growth in the emerging economies is accelerating strongly.

The upturn was slow to take off in the Europe, Middle East, and Africa (EMEA) region in the first half of 2011. It was initially driven by manufacturing, with services contributing strongly later, according to the institutions cited above. The countries at the geographic core of the European Union did better than those at the margins. Some of the latter, most notably Greece, were struggling against challenging economic headwinds. Germany in particular recorded significant growth. However, the emerging economies in the region, especially in Sub-Saharan Africa, recorded the strongest growth.

In the Americas region, the economy of the United States moved ahead very slowly, and unemployment remained high. In Latin America, economic output had returned to precrisis levels by the end of the half, helped by high commodity prices.

The institutions’ reports for the Asia Pacific Japan (APJ) region focus on Japan, where the March 11 earthquake led to a sharp contraction of the economy in the second quarter. Other economies in Asia grew strongly in the first half of 2011, encouraged by strong domestic and export demand.

Development of the IT Market

In the first half of 2011, the global market for IT grew slightly less quickly than in the year before, according to International Data Corporation (IDC), a market research firm based in the United States. Percentage growth had been in double digits in 2010 but was in the upper single digits in the period January through June, 2011.

IDC reports that the main factor was a retreat from the exceptional growth in hardware sales recorded in 2010. In the software and services segments, on the other hand,

global growth was relatively stable, with percentages in the low-to-mid single digits.

The earthquake in Japan on March 11 and its effects and the political instability in Egypt and elsewhere in North Africa and the Middle East had negative consequences for the global IT market.

First-half EMEA region IT market growth was less strong than the global average. Within the region, one bright spot was the Western Europe software market, with growth in the middle single-digit range. The services market was especially upbeat in Germany. IDC reports IT market growth for Central and Eastern Europe at rates above the average for the EMEA region. In the Middle East and North Africa, political unrest was a brake on IT investment.

The IT market was firm in the Americas in the first half of 2011. IDC says the United States saw stronger IT investment growth, especially in the hardware segment, than it had predicted during the first quarter. IT market growth in Latin America decelerated in the second quarter from the previous year’s rates but remained stronger than in the Americas as a whole, IDC says.

IDC reports buoyant IT markets in the APJ region again in the first half of 2011. Here as well, the strongest segment was hardware, but the region’s services segment also outpaced the global average. Only in Japan did the IT market shrink significantly — a result, says IDC, of the March 11 earthquake.

MISSION AND STRATEGY

In the first six months of 2011, we had no changes in our mission or our strategy. For a detailed description of our mission and strategy, see page 68 and the subsequent pages in our 2010 Annual Report and item 4 in our 2010 Annual Report on Form 20-F.

PORTFOLIO OF SOFTWARE AND SERVICES

On Premise

In June, we announced the general availability of SAP HANA, heralding a new generation of analytics, business applications and IT simplification with SAP in-memory computing technology. SAP HANA was first conceived in spring 2010.

At SAPPHIRE NOW in May, we announced general availability of “Innovations 2010” enhancement packages across all core SAP Business Suite 7 applications, which enable customers to switch on new software features for unique industry and line-of-business processes, without disrupting operations to undergo system upgrades. We also announced the 10.0 release of enterprise performance management (EPM) solutions — software that helps

6     INTERIM REPORT JANUARY–JUNE 2011

companies ensure decisions and actions are aligned with business aims.

In the first quarter, on the SAP Run Better Tour, a 16-city North American event series, we announced a new generation of applications based on SAP’s in-memory technology. Also at the SAP Run Better Tour, we presented the 4.0 versions of Business Intelligence (BI) and Enterprise Information Management (EIM) from the SAP BusinessObjects portfolio. They are designed to provide companies with very good tools for analyzing large volumes of data from within and outside of their businesses to come to informed decisions.

In the first quarter, we launched our newest release of our governance, risk, and compliance (GRC) software. It can be used by companies to manage, monitor, and analyze their risks in a single, unified environment. The latest release integrates GRC capabilities into everyday business processes, making risk management, regulatory compliance, and safe, productive operations a standard and a consistent practice.

Also in the first quarter, we announced the SAP Social Services Management for Public Sector package, a new solution to help improve disbursement processes for monetary social benefits. The software is designed for government agencies at the federal, state, and local level that are tasked with administering and approving monetary benefits as they relate to social services.

In January, we launched the SAP Billing for Telecommunications package, an integrated solution designed to cover the widespread demands and service portfolios of communications service providers (CSPs) globally. Building on the acquisitions of software companies Highdeal and Sybase, the solution marks a new step in enabling CSPs to launch and monetize next-generation service offerings.

On Demand

In June, we announced the general availability of the SAP Sales OnDemand solution in Austria, Canada, Germany, Ireland, Switzerland, the United Kingdom and the United States. The solution is designed in direct collaboration input of customers’ sales professionals in order to specifically support the way they work and help them sell more effectively.

In April, SAP marked a milestone in its product road map for on-demand applications that quickly and easily add on to customers’ on-premise software installations. A cloud-based e-commerce solution from SAP partners for companies running SAP Business All-in-One sets up SMEs with an e-commerce site that is hosted in the cloud. Web orders are processed alongside traditional sales channels in the SAP back end.

At CeBIT in the first quarter, we announced a new class of on-demand software solutions that include packaged integration into SAP Business Suite. They apply mobile and social networking technologies to give better support for the way people work today anytime, anywhere. As the linchpin of SAP’s cloud strategy, the SAP Business ByDesign solution is the platform on which this new line of applications is built.

We announced feature pack 2.6 for SAP Business ByDesign in the first quarter. It is a major update in our portfolio of on-demand solutions. The new release serves as an open platform on which a broad ecosystem of partners can further customize the software, and on which SAP will develop new on-demand offerings for various lines of business.

On Device

In May at SAPPHIRE NOW in Orlando, SAP and Sybase announced the release of the next-generation Sybase Unwired Platform 2.0 and the unveiling of an enhanced version of their software development kit (SDK). The latest releases help businesses of all sizes better respond to real-time business dynamics through cost-efficient, simplified deployment, development and management of native and Web-based mobile applications on a wide array of device types.

At SAPPHIRE NOW, SAP and Sybase also announced a series of new mobile apps built on Sybase Unwired Platform aimed at mobilizing business processes and business information across key industries including manufacturing, consumer products, utilities, high tech, oil and gas, and retail.

In the first quarter, we announced the launch of the SAP Collaborative E-Care Management application, which connects patients, their families and care providers through medical monitoring software and mobile devices. The aim is to improve the management of health with individualized treatment plans and educational content. With the SAP technology, patients will be able to use mobile devices to track their health status, interact with care providers, and monitor how they are progressing on an individualized care plan developed with their care provider.

Orchestration

In June, SAP announced the general availability of the 7.3 release of SAP NetWeaver. The latest release helps customers adapt business processes more quickly and easily without increasing costs.

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At SAPPHIRE NOW in Orlando, we announced the launch of SAP NetWeaver Gateway, an open, standards-based framework for extending the reach of our business software to an exponentially larger number of users, developers and environments.

In May, we announced the first major update to SAP Solution Manager in more than four years. The 7.1 release of the application management solution will make the tool a one-stop shop for total application life-cycle management by offering control mechanisms for both SAP and non-SAP environments.

Solutions Delivered Jointly With Partners

In May at SAPPHIRE NOW in Orlando, SAP and Amazon Web Services announced that a variety of SAP solutions are available on demand via Amazon Web Services. Also at SAPPHIRE NOW, SAP and Dell announced the availability of SAP applications for deployment via Dell’s VIS Next Generation Datacenter Platform, opening up new ways for customers to increase IT responsiveness and business efficiency. Dell’s PowerEdge R910 is among the hardware platforms certified by SAP for running SAP in-memory computing technology.

In the first quarter, SAP and Verizon announced that we would jointly deliver the SAP Customer Relationship Management (SAP CRM) rapid-deployment solution to enterprise workers through Verizon’s flagship cloud offering, Computing as a Service. Workers will be able to access SAP CRM from their desktops or their mobile devices.

In February, HSBC, SAP, and SWIFT announced that we have teamed together to create the next generation of HSBC Connect to SAP, HSBC’s corporate-to-bank integration and treasury solution catering to HSBC’s corporate customers that use enterprise resource planning (ERP) software from SAP.

At the Duet Enterprise Virtual Launch Summit in February, SAP and Microsoft released and announced general availability of Duet Enterprise software, our joint product that connects Microsoft SharePoint 2010 and SAP solutions, providing users easier access to business processes and data. In addition, the companies launched the new Unite Partner Connection program, which will help partners of both companies increase their business opportunities more effectively through a better understanding of Microsoft and SAP joint solutions and product road maps.

Analyst Endorsements

In June, IDC named SAP leader in the worldwide BI tools market based on software license and maintenance revenue. IDC also reported that SAP has grown faster than the worldwide market for financial performance and

strategy management applications for the fifth consecutive year.

SAP was the overall leader in BI worldwide, serving nearly one-fourth of the market, according to an April 2011 report issued by Gartner Inc. SAP ranked first with 23% share of the worldwide BI segment based on 2010 revenue, reflecting our 16.8% revenue growth since 2009.

In May we announced that we had been named a leading vendor by two independent analyst firms serving the financial services sector, Ovum and Forrester Research, Inc. SAP Transactional Banking received the top ranking of “shortlist” from Ovum and is the highest ranked vendor for functionality, while SAP software received a “strong” rating in a Forrester report that examined CRM offerings from 24 vendors with respect to their ability to meet the specific requirements for financial services firms.

In the first quarter, SAP achieved a position in the leaders’ quadrant of the Magic Quadrant for Corporate Performance Management (CPM) Suites report. SAP was recognized by Gartner as a market leader for both its “ability to execute” and its “completeness of vision.”

In January, Ventana Research, a leading benchmark research and advisory services firm, ranked SAP as a top software vendor in its 2011 Value Index for Product Information Management and its 2010 Value Index for Financial Performance Management. SAP earned high marks for its solutions that help organizations establish a single source of product information across the enterprise supply chain.

In January, Gartner positioned SAP in the leaders’ quadrant of the Magic Quadrant for ERP for Product-Centric Midmarket Companies report. SAP was recognized as a market leader for both its “ability to execute” and its “completeness of vision.”

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CUSTOMERS

In the second quarter of 2011, SAP closed major contracts in key regions.

EMEA

Nycomed Danmark ApS, GK ALMI, Fressnapf Tiernahrungs GmbH, Boehringer Ingelheim Pharma GmbH & Co. KG, ZF Friedrichshafen AG, Rieter Machine Works Ltd.

Americas

Servicios Liverpool, S.A. de C.V., Hydro One Networks Inc., Medtronic, Inc., Molex Incorporated, Johns Hopkins, Southwest Airlines Company.

Asia Pacific/Japan

Fortescue Metals Group Ltd, China National Biotec Group, Krishak Bharati Cooperative Limited, Centre For Railway Information Systems (CRIS), Hyundai Logiem Co., Ltd , Central Pattana Public Co., Ltd.

SAP Business ByDesign

Treveri Basketball AG, Ströhmann Steinkult GmbH, Bruno Söhnle GmbH, Agilita, College of Management and Technology, JBM Shelters, Aerospace Engineers, Channel Tech, RTC Industries.

RESEARCH AND DEVELOPMENT

Our total research and development expense rose by 22% to €966 million in the first six months of 2011 compared to €790 million in the corresponding period in 2010.

The amounts for 2011 include R&D expense for Sybase, but the comparative amounts for 2010 do not, as we did not acquire Sybase until the end of July 2010.

Based on IFRS, the percentage of total revenue we spent on R&D in the first six months of 2011 was 15.3% (first half of 2010: 14.6%), 0.7 percentage points higher than for the first half of 2010. This rise is mainly due to an increase in expenses relating to the acquisition of Sybase in 2010 and to expenses from share-based payment plans. On a non-IFRS basis, R&D expense as a percentage of total revenue increased by 0.2 percentage points to 14.6% (first six months of 2010: 14.4%).

We had 15,898 full-time equivalent (FTE) employees working in research and development teams on June 30, 2011, an increase of 11% compared with the corresponding period in 2010 (June 30, 2010: 14,346; December 31, 2010: 15,884). This increase results mainly from acquisitions.

In February, we announced that we would build an innovation center in Potsdam, Germany, where we will develop new software solutions in cooperation with customers. The building at the new location will have space

for 150 staff. The center will eventually have over 100 permanent employees, and be used by up to 200 students and doctorate students. With the innovation center, SAP will continue to drive momentum for innovative and customer-oriented solutions. SAP plans to invest €15.8 million in the new location.

ACQUISITIONS

In February 2011, SAP acquired security, identity and access management software, as well as assets including development and consulting resources from SECUDE, a leading vendor of application security solutions in Switzerland. SAP will include Secure Login and Enterprise Single Sign-On in its product portfolio to provide its customers with secure client-server communications for their SAP systems.

EMPLOYEES

At the end of the second quarter of 2011, our employee headcount in full-time equivalents was 54,043 (June 30, 2010: 48,021; December 31, 2010: 53,513). Thereof 15,740 were based in Germany (June 30, 2010: 14,872; December 31, 2010: 15,633) and 10,241 in the United States (June 30, 2010: 8,252; December 31, 2010: 10,194). Of the overall headcount increase in 2010, 3,817 resulted from the acquisition of Sybase in July 2010.

ORGANIZATION AND CHANGES IN MANAGEMENT

There were no important changes in our organization and management in the second quarter and the first half of 2011.

After the end of the quarter, Angelika Dammann, a member of the Executive Board, left SAP for personal reasons.

INTERIM MANAGEMENT REPORT     9

OPERATING RESULTS, FINANCES, AND ASSETS

In the sections that follow, our operating results, finances and assets are discussed in detail. It must be borne in mind that the 2011 amounts include expenses and software revenue for Sybase, but the comparative amounts for the second quarter and the first half of 2010 do not, as we did not acquire Sybase until July 2010.

Performance against our Outlook for 2011 (Non-IFRS)

In this section, all discussions of the first six months’ contribution to target achievement is based exclusively on non-IFRS measures. However, in the following section the discussion of results refers to IFRS figures only, so those figures are therefore not expressly identified as IFRS figures.

We present, discuss, and explain the reconciliation from IFRS measures to non-IFRS measures in the “Additional Financial Information (Unaudited)” section and online at www.sap.com/corporate-en/investors/reports.

Our outlook for operating profit and operating margin in 2011 and their 2010 comparative amounts are based on amended non-IFRS definitions that exclude expenses for share-based payments and restructuring compared to 2010. Our prior year figures have been adjusted accordingly.

Operational Targets for 2011 (Non-IFRS)

For our outlook based on non-IFRS numbers, we refer to the passage “Forecast for SAP” in this interim management report.

Key Figures — SAP Group 4/1/-6/30/2011 (Non-IFRS)

Non-IFRS

							Change in %
	4/1/-6/30/		4/1/-6/30/				(constant
€ millions, unless otherwise stated	2011		2010		Change in %		currency)
Software revenue		802		637		26		35
Support revenue		1,689		1,526		11		15
Software and software-related service revenue		2,587		2,258		15		20
Total revenue		3,308		2,894		14		20
Operating expense		-2,289		-2,040		12		17
Operating profit		1,019		854		19		26
Operating margin in %		30.8		29.5	1.3pp		1.5pp
Profit after tax		703		562		25	na
Effective tax rate in %		27.2		26.7	0.5pp		na
Earnings per share — basic in €		0.59		0.47		26	na

Actual Performance in the Second Quarter of 2011 (Non-IFRS)

In the second quarter of 2011, software and software-related service revenue (non-IFRS) increased by 15% over the same period in the previous year to €2,587 million (Q2 2010: €2,258 million). On a constant currency basis, the increase was 20%.

Non-IFRS total revenue in the same period was €3,308 million (Q2 2010: €2,894 million), an increase of 14%. On a constant currency basis, the increase was 20%.

Non-IFRS operating profit was €1,019 million (Q2 2010: €854 million), an increase of 19% (26% at constant currencies).

The operating margin (non-IFRS) widened in the second quarter of 2011 by 1.3 percentage point to 30.8% compared to the prior year’s second quarter (Q2 2010: 29.5%). At constant currencies, the operating margin (non-IFRS) increased by 1.5 percentage points to 31.0%.

In the second quarter of 2011 non-IFRS profit after tax was €703 million (Q2 2010: €562 million), an increase of 25%. Non-IFRS basic earnings per share was €0.59 (Q2 2010: €0.47), an increase of 26%. The non-IFRS effective tax rate in the second quarter of 2011 was 27.2% (Q2 2010: 26.7%).

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Key Figures — SAP Group 1/1/-6/30/2011 (Non-IFRS)

Non-IFRS

							Change in %
	1/1/-6/30/		1/1/-6/30/				(constant
€ millions, unless otherwise stated	2011		2010		Change in %		currency)
Software revenue		1,385		1,101		26		31
Support revenue		3,361		2,920		15		16
Software and software-related service revenue		4,931		4,205		17		19
Total revenue		6,349		5,403		18		19
Operating expense		-4,551		-3,933		16		17
Operating profit		1,798		1,470		22		24
Operating margin in %		28.3		27.2	1.1pp			1.2pp
Profit after tax		1,231		1,000		23	na
Effective tax rate in %		28.9		26.1	2.8pp		na
Earnings per share — basic in €		1.04		0.84		24	na

Actual Performance in the First Half of 2011 (Non-IFRS)

In the first half of 2011, software and software-related service revenue (non-IFRS) increased by 17% over the same period in the previous year to €4,931 million (first half of 2010: €4,205 million). On a constant currency basis, the increase was 19%.

Non-IFRS total revenue in the same period was €6,349 million (first half of 2010: €5,403 million), an increase of 18%. On a constant currency basis, the increase was 19%.

Non-IFRS operating profit was €1,798 million (first half of 2010: €1,470 million), an increase of 22% (24% at constant currencies).

The operating margin (non-IFRS) widened in the first half of 2011 by 1.1 percentage point to 28.3% compared to the prior year’s first half (first half of 2010: 27.2%). At constant currencies, the operating margin (non-IFRS) increased by 1.2 percentage points to 28.4%.

In the first half of 2011 non-IFRS profit after tax was €1,231 million (first half of 2010: €1,000 million), an increase of 23%. Non-IFRS basic earnings per share was €1.04 (first half of 2010: €0.84), an increase of 24%. The non-IFRS effective tax rate in the first half of 2011 was 28.9% (first half of 2010: 26.1%). The year over year increase of the effective tax rate mainly results from taxes for prior years.

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KEY FIGURES SAP GROUP IN THE SECOND QUARTER OF 2011

€ millions,	4/1/-6/30/		4/1/-6/30/
unless otherwise stated	2011		2010		Change		Change in %
Software revenue		802		637		165		26
Support revenue		1,681		1,526		155		10
Software and software-related service revenue		2,579		2,258		321		14
Total revenue		3,300		2,894		406		14
Operating expense		-2,443		-2,120		-323		15
Operating profit		857		774		83		11
Operating margin in %		26.0		26.7	-0.7pp		na
Profit after tax		588		491		97		20
Effective tax rate in %		26.9		27.4	-0.5pp		na
Headcount in full-time equivalents (June 30)		54,043		48,021		6,022		13
Days sales outstanding in days (June 30)		63		65		-2		-3
Earnings per share — basic in €		0.49		0.41		0.08		20

OPERATING RESULTS (IFRS)

Orders

The total number of new software deals we closed grew 34% in the second quarter of 2011 to 14,190 (Q2 2010: 10,609). The value of software orders we received showed a substantial increase of 22% compared with the previous year.

Revenue

In the second quarter of 2011, software revenue was €802 million (Q2 2010: €637 million), an increase of 26% compared to the same period in 2010.

Our software and software-related service revenue was €2,579 million (Q2 2010: €2,258 million), an increase of 14% compared to the same period in 2010.

Total revenue was €3,300 million (Q2 2010: €2,894 million), an increase of 14% compared to the same period in 2010.

Operating Expenses

In the second quarter of 2011, our operating expenses increased by 15% to €2,443 million (Q2 2010: €2,120 million). The increase in operating expenses is mainly due to expenses in connection with the acquisition of Sybase, which the comparative period of the prior year did not contain, an increase in personnel costs, acquisition-related charges, share-based payment expenses, and an increase in expenses relating directly to the increase in total revenue for the quarter, such as sales expense.

The main reason for the rise in personnel costs was the increase in headcount, principally because of our acquisition of Sybase in 2010.

Operating Profit and Margin

In the second quarter of 2011, operating profit increased by 11% over the same period in the previous year to €857 million (Q2 2010: €774 million).

Our operating margin decreased by 0.7 percentage points to 26.0% (Q2 2010: 26.7%). In the second quarter of 2011, acquisition-related expenses reduced our operating margin by 3.3 percentage points and share-based payment expenses reduced it by 1.0 percentage points. In the comparator period of the prior year, acquisition-related expenses and expenses for share-based payment had much smaller effects on the operating margin, reducing it by 2.2 percentage points and by 0.5 percentage points respectively.

Profit after Tax and Earnings per Share

In the second quarter of 2011 profit after tax was €588 million (Q2 2010: €491 million), an increase of 20%. Basic earnings per share was €0.49 (Q2 2010: €0.41), an increase of 20%.

The effective tax rate in the second quarter of 2011 was 26.9% (Q2 2010: 27.4%).

12     INTERIM REPORT JANUARY–JUNE 2011

KEY FIGURES SAP GROUP IN THE FIRST HALF OF 2011

	1/1/-6/30/		1/1/-6/30/
€ millions, unless otherwise stated	2011		2010		Change		Change in %
Software revenue		1,385		1,101		284		26
Support revenue		3,336		2,920		416		14
Software and software-related service revenue		4,906		4,205		701		17
Total revenue		6,324		5,403		921		17
Operating expense		-4,870		-4,072		-798		20
Operating profit		1,454		1,331		123		9
Operating margin in %		23.0		24.6	-1.6pp		na
Profit after tax		991		878		113		13
Effective tax rate in %		28.6		26.6	2.0pp		na
Earnings per share — basic in €		0.83		0.74		0.09		12

OPERATING RESULTS (IFRS)

Orders

The total number of new software deals we closed grew 34% in the first half of 2011 to 26,896 (first half of 2010: 20,057). The value of software orders we received showed an increase of 12% compared with the previous year.

Revenue

In the first half of 2011, software revenue was €1,385 million (first half of 2010: €1,101 million), an increase of 26% compared to the same period in 2010.

Our software and software-related service revenue was €4,906 million (first half of 2010: €4,205 million), an increase of 17% compared to the same period in 2010.

Total revenue was €6,324 million (first half of 2010: €5,403 million), an increase of 17% compared to the same period in 2010.

Operating Expenses

In the first six months of 2011, our operating expenses increased by 20% to €4,870 million (first half of 2010: €4,072 million). The increase in operating expenses is mainly due to expenses in connection with the acquisition of Sybase, which the comparative period of the prior year did not contain, an increase in personnel costs, acquisition-related charges, share-based payment expenses and an increase in expenses relating directly to the increase in total revenue for the half year, such as sales expense.

The main reason for the rise in personnel costs was the increase in headcount, principally because of our acquisition of Sybase in 2010.

Operating Profit and Margin

In the first six months of 2011, operating profit increased by 9% over the same period in the previous year to €1,454 million (first half of 2010: €1,331 million).

Our operating margin decreased by 1.6 percentage points to 23.0% (first half of 2010: 24.6%). In the first six months of 2011, acquisition-related expenses reduced our operating margin by 3.5 percentage points and share-based payment expenses reduced it by 1.3 percentage points. In the comparator period of the prior year, acquisition-related expenses and expenses for share-based payments had much smaller effects on the operating margin, reducing it by 2.2 percentage points and by 0.3 percentage points respectively.

Profit after Tax and Earnings per Share

In the first six months of 2011 profit after tax was €991 million (first half of 2010: €878 million), an increase of 13%. Basic earnings per share was €0,83 (first half of 2010: €0.74), an increase of 12%.

The effective tax rate in the first half of 2011 was 28.6% (first half of 2010: 26.6%). The year over year increase of the effective tax rate mainly results from taxes for prior years.

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FINANCES (IFRS)

Cash Flow and Liquidity

Operating cash flow for the first six months of 2011 was €2.270 million (June 30, 2011: €1.282 million), our highest first half figure ever. The increase in operating cash flow was due mainly to strong growth in revenue in the fourth quarter of 2010 and the first quarter of 2011. Improvements in our working capital management also reduced our average collection period.

Our cash flow increased substantially in comparison with the corresponding period last year because, among other things, last year we invoiced support fees later. Having introduced a two-tier support model, we decided in early 2010 not to invoice customers until they had told us which of the options they were choosing. In consequence, first six months operating cash flow was lower than usual in 2010.

Group liquidity stood at €4,395 million on June 30, 2011 (December 31, 2010: €3,528 million). Group liquidity comprised cash and cash equivalents totaling €3,842 million (December 31, 2010: €3,518 million) and short-term investments totaling €553 million (December 31, 2010: €10 million). The significant increase in short-term investments was mainly due to investments in fixed-term deposits.

Group Liquidity of SAP Group

	June 30,		December
€ millions	2011		31, 2010		Change
Cash and cash equivalents		3,842		3,518		324
Short-term investments		553		10		543
Group Liquidity — gross		4,395		3,528		867
Current bank loans		0		1		-1
Net liquidity 1		4,395		3,527		868
Non-current bank loans		102		1,106		-1,004
Private placement transactions		1,562		1,071		491
Bond		2,200		2,200		0
Net liquidity 2		531		-850		1,381

Net liquidity 1 is total group liquidity minus current bank loans. Current bank loans comprise overdrafts only, and were completely repaid in the first six months of 2011.

Net liquidity 2, defined as group liquidity minus bank loans, private placement transactions, and bonds, was €531 million (December 31, 2010: -€850 million). Our strong operating cash flow in the first half of 2011 was the main reason for the improvement in net liquidity 2 since December 31, 2010. The increase in private placement liabilities in the six months of 2011 compared with December 31, 2010, results from a US$750 million private placement transaction concluded in the United States on June 1, 2011. The transaction enhances the Group’s financial flexibility by broadening its investor base and extending its maturity profile. Proceeds of the issue were used to repay existing Group financial debt incurred to finance the Sybase acquisition. A group of 16 institutional investors participated in the two tranches: a US$600 million tranche with a five-year term, and a US$150 million tranche with a seven-year term. The coupon was less than 3.5% on both tranches.

Free Cash Flow and Days Sales Outstanding

Our free cash flow and our days sales outstanding (DSO) on June 30, 2011 were as follows:

Free Cash Flow

	June 30,		June 30,		Change
	2011		2010		in %
Free cash flow		2,022		1,157		75

We calculate free cash flow as net cash from operating activities minus purchases of intangible assets and property, plant, and equipment.

Days Sales Outstanding

	June 30,		December		Change
	2011		31, 2011		in days
Days sales outstanding (DSO) in days		63		65		-2

DSO measures the length of time it takes to collect receivables. SAP calculates DSO by dividing the average invoiced accounts receivables balance of the last 12 months by the average monthly sales of the last 12 months.

ASSETS (IFRS)

Analysis of Consolidated Statements of Financial Position

The total assets of the Group were € 20.896 million on June 30, 2011 and were thus practically constant compared with €20,839 million on December 31, 2010.

14     INTERIM REPORT JANUARY–JUNE 2011

The equity ratio was 48% on June 30, 2011 and remained relatively flat compared to December 31, 2010, with 47%.

Investments

Our capital expenditures for property, plant, and equipment increased to €248 million for the first half of 2011 (December 31, 2010: €287 million). This increase can mainly be traced back to an increase in spending on IT hardware and software.

Off-Balance Sheet Financial Instruments

There are no off-balance sheet financial instruments, such as sale-and-lease-back transactions, asset-backed securities, and liabilities related to special-purpose entities, that are not disclosed in our interim consolidated financial statements. Any factoring contracts are not material in volume.

Competitive Intangibles

The assets that are the basis for our current and future success do not appear on the Consolidated Statements of Financial Position. This is apparent from a comparison of the market capitalization of SAP AG which was €51.25 billion, with the equity of the SAP Group on the Consolidated Statements of Financial Position, which was €10.0 billion at the end of the second quarter 2011 (December 31, 2010: €9.8 billion). This means that the market capitalization of our equity is 413% higher than the book value.

Customer capital, our employees and their knowledge and skills, our ecosystem of partners, the SAP brand, and our past investments in research and development are some of the most important competitive intangibles that influence our market value.

SUSTAINABILITY

As part of its ongoing commitment to sustainable business operations, we released our unaudited quarterly sustainability update for the second quarter of 2011 in July.

Our greenhouse gas (GHG) emissions for the quarter ended June 30, 2011, totaled 115 kilotonnes (not including Sybase) — a year-over-year increase of 8% compared to the second quarter of 2010. With an increase in our employee base of 5%, our emissions per employee (in full-time equivalents) increased by 3%.

While there was an 18% increase in air travel, SAP managed to reduce electricity consumption in the offices by 9%. Also the number of corporate cars increased by 10%; however the adverse impact was diminished by initiatives including fuel efficiency training and policy changes. These actions restricted the increase of the emissions caused by corporate cars to 6%.

From the start of 2008 to today SAP has realized approximately €185 million in cost avoidance, in comparison with a “business as usual” extrapolation.

We are still on track to meet our year-end emissions target of 460 kilotons — in line with our long-term target to reduce GHG emissions to year-2000 levels by 2020.

Also for the first time SAP is reporting against their goal of attaining 25% women in management by 2017. For the second quarter of 2011, the company employed 18.2% women in management, up from 17.8% at the end of 2010.

SAP STOCK

SAP AG common stock is listed on the Frankfurt Stock Exchange as well as a number of other German exchanges. On the New York Stock Exchange (NYSE), SAP American depositary receipts (ADRs), each representing one common share, trade under the symbol SAP. SAP is a component of the DAX, the index of 30 German blue chip companies, the Dow Jones EURO STOXX 50, the S&P North American Technology Software Index, and the TechPGI.

From a starting point of €43.20 (Xetra closing price) on March 31, SAP stock climbed to €45.90, its peak so far this year, on April 26, before retreating to €43.09 on April 28, the day we published our first-quarter numbers. On the subsequent trading days, the stock made good most of that loss and, on a market buoyed by the Federal Reserve’s expansive monetary policy, touched €44.62 on May 11. A few days earlier, on May 2, the DAX reached its high point for the year so far.

INTERIM MANAGEMENT REPORT     15

SAP stock then broadly tracked the market. On May 26, the day after the Annual General Meeting of Shareholders, the price was €42.27 ex dividend. Toward the end of the quarter, market sentiment suffered as a result of pessimism surrounding the U.S. economy and uncertainty relating to the upcoming vote on cost saving measures in the Parliament of Greece. On June 28, SAP stock declined

to €41.07, its lowest point in the second quarter. It recovered to €41.74 on the last day of the month. SAP stock lost 3.4% in the second quarter. In the same period, the EURO STOXX declined 2.1%, the DAX gained 4.7%, and the S&P North American Technology Software Index gained 2.3%.

With an Xetra closing price of €41.75 on June 30, 2011, our market capitalization was €51.25 billion, based on 1,227 million outstanding shares. Deutsche Börse uses the free-float factor to weight companies in the DAX. Our free-float factor was 73.17% on June 30, 2011, and the free-float market capitalization on the same data was approximately €37.5 billion. This makes SAP the fifth largest company in the DAX in terms of free-float market capitalization. When measured by our total market capitalization of €51.25 billion, we are the fourth-largest DAX company.

The SAP AG Annual General Meeting of Shareholders took place on May 25, 2011, at the SAP Arena in Mannheim, Germany. At their Meeting, the shareholders accepted all of the board recommendations and formally approved the acts of the Executive Board and of the Supervisory Board in 2010 by overwhelming majorities. They resolved that a dividend of €0.60 (2009: €0.50) per share be paid for 2010.

The total dividend distributed out of 2010 earnings was about €713 million (2009: €594 million). This corresponds to a payout ratio of 39% of profit after tax. Based on profit after tax without the 2010 expenses for the TomorrowNow litigation, we achieved a payout ratio of 29% which is aligned with our dividend policy of

distributing approximately 30% of profit after tax to our shareholders.

The dividend was paid on or after May 26, 2011. The full agenda and the results of ballots on the agenda items are online at www.sap.com/agm.

Additional information about SAP common stock is available on Bloomberg under the symbol SAP GR, on Reuters under SAPG.F, on Quotron under SAGR.EU, and on the SAP Web site at www.sap.com/investor.

16     INTERIM REPORT JANUARY–JUNE 2011

RISK AND OPPORTUNITY MANAGEMENT

We have comprehensive risk management structures in place, which are intended to enable us to recognize and analyze risks early and to take the appropriate action.

The civil and political unrest in the Middle East and North Africa has so far had only a minor negative impact on our business. However, it is very difficult to judge how the situation in that region will develop and we cannot yet make any reliable judgments at this stage about the possible effects of events there on our business. We cannot exclude the possibility that they may negatively impact our financial position, cash flows, operating profit, or stock price.

We now believe risks in relation to the earthquake and subsequent tsunami in Japan on March 11, 2011, are reduced. The economic consequences of such events cannot be foreseen with complete accuracy.

For changes in our legal liability risks since our last annual report, see note (13) in the Notes to the Interim Financial Statements. The other risk factors remain largely unchanged since 2010, and are discussed more fully in our 2010 Annual Report and our Annual Report on Form 20-F for 2010. We do not believe the risks we have identified jeopardize our ability to continue as a going concern.

EVENTS AFTER THE REPORTING PERIOD

In July 2011, Angelika Dammann, a member of the Executive Board, left SAP for personal reasons. She was our chief human relations officer and labor relations director. SAP CFO Werner Brandt assumed Dammann’s global HR leadership and labor relations role on an interim basis.

OUTLOOK

Future Trends in the Global Economy

The global economy will continue to recover under its own steam during the rest of 2011, according to the latest reports from the European Central Bank (ECB), the International Monetary Fund (IMF), and the Organisation for Economic Co-operation and Development (OECD). They expect the economic effect of the political unrest in the Middle East and North Africa and of the disaster in Japan to fade during the second half of the year.

They foresee divergent rates of growth between the advanced and the developing economies, as in the first half of the year. The after effects of the financial crisis will continue to cast a shadow over the advanced economies, whereas the developing countries will be producing at near capacity levels and may overheat, the ECB says.

Within the Europe, Middle East, and Africa (EMEA) region, the institutions expect economic activity in the euro area to continue to expand in the second half of this year, albeit at a slower pace. One factor may be the difficult financial situation in certain euro area countries such as, for example, Greece and Portugal. Over the full year, the institutions expect the German economy to grow by a percentage in the lower single digit range, but slightly more quickly than the average for the rest of the euro area. Within the EMEA region, they expect economic growth to be most vigorous in Sub-Saharan Africa.

The institutions also expect the upturn to continue for the rest of the year in the Americas. That includes the United States, although in that country progress may be less rapid than earlier in the recovery. The institutions expect growth in the lower single-digit percentage range.

INTERIM MANAGEMENT REPORT     17

In the Asia Pacific Japan (APJ) region, the focus is on Japan and the aftermath of the earthquake. The institutions expect reconstruction work to generate increased demand and they anticipate gradual normalization on the supply side. Nonetheless, they expect the Japanese economy to contract over the full year.

How accurate these predictions eventually turn out to be and whether the institutions have to revisit them depends how various factors develop, including government stimulus measures, consumer demand, the price of oil, the political unrest in the Middle East and North Africa, and the aftermath of the earthquake in Japan. The measures to stabilize the euro finance system may also prove to be such a factor. It remains to be seen what effect the difficult situation with regard to the debt of certain countries that use the euro will have on the economy of the euro area as a whole.

Development of the IT Market

International Data Corporation (IDC) expects the global IT market to expand by a percentage in the higher single-digit range in 2011. It predicts that companies will invest less in hardware in the second half of 2011 than they did in the equivalent period in 2010. This is because investment peaked immediately after the economy came out of the crisis. However, it believes spending on software and services will continue to accelerate until the end of the year, with a growth percentage in the middle of the single-digit range. That already allows for the known impacts on the IT market of the March 11 earthquake in Japan and the political disturbances in the Middle East and North Africa.

In the second half of 2011, EMEA region IT market growth is expected to underperform against the global average. In Western Europe, including Germany, IDC expects growth to be slower in the hardware segment but quicker in the software and services segments. In Central and Eastern Europe, the IT market should continue to grow sturdily, while in the Middle East and Africa progress will depend on political developments, according to IDC.

IDC says that in the Americas region, growth during the rest of this year may be less strong than in the past six months. Nonetheless, percentage growth in the United States should be in the higher single digits. IDC believes growth in Latin America will be in double digits, and above average in both the hardware and services segments.

In the Asia Pacific Japan (APJ) region, IDC expects IT market expansion to be well into double digits in the second half of 2011 in some countries. However, Japan continues to bear the impact of the March 11 earthquake, which has significantly reduced spending in all segments of the IT market there. In IDC’s view, reconstruction efforts, whether public or private, can help reverse the damage only to a limited extent.

What happens to the global IT business depends largely on what happens in the economy as a whole. Other major factors will include further developments on the financial front in various euro area countries, and the political situation in the Middle East and North Africa.

FORECAST FOR SAP

Operational Targets for 2011 (Non-IFRS)

Business Outlook

The Company is providing the following outlook for the full-year 2011, which has changed from the previous outlook provided on April 28, 2011. The Company has refined the outlook for Non-IFRS software and software-related service revenue at constant currencies and non-IFRS operating profit at constant currencies.

The Company reaffirmed that it expects full-year 2011 non-IFRS software and software-related service revenue to increase in a range of 10% — 14% at constant currencies (2010: €9.87 billion), but the Company now expects to reach the high end of the range.

The Company reaffirmed that it expects full-year 2011 non-IFRS operating profit to be in a range of €4.45 billion — €4.65 billion at constant currencies (2010: €4.01 billion), but the Company now expects to reach the high end of the range, resulting in 2011 non-IFRS operating margin increasing in a range of 0.5 — 1.0 percentage points at constant currencies (2010: 32.0%).

The Company reaffirmed for the full-year 2011 that it projects an IFRS effective tax rate of 27.0% — 28.0% (2010: 22.5%) and a non-IFRS effective tax rate of 27.5% — 28.5% (2010: 27.3%).

18     INTERIM REPORT JANUARY–JUNE 2011

Differences Between IFRS and Non-IFRS Measures

As noted above, our guidance is based on Non-IFRS measures at constant currencies. The following provides additional insight into the impact of the constant currency notion and the items by which our IFRS measures and non-IFRS measures differ:

The following table shows the differences between IFRS and Non-IFRS Measures in our operating profit:

	Actual		Estimated
Non-IFRS Measures (in €	Amounts		amounts for
million)	from 2010		20111)
Deferred support revenue write-down		74	between 20 and 30
Discontinued activities2)		983	less than 20
Stock-based compensation expenses3),4)		58	between 140 and 160
Acquisition-related charges5)		300	between 430 and 460
Restructuring		3	less than 10

¹⁾ All adjusting items are partly incurred in currencies other than the Euro. Consequently, the amounts are subject to currency volatility. All estimates for 2011 provided in the table are at actual currency and are calculated based on certain assumptions regarding the developments of the different currency exchange rates. Depending on the future development of these exchange rates the total amounts for 2011 may differ significantly from the estimates provided in the table above. Please remember that SAP’s financial market outlook is based on constant currency.

²⁾ We will consider all new information that emerge from further developments of the TomorrowNow lawsuit to determine if the provision should be adjusted in the future, which could result in a change to the estimate provided in the table above.

³⁾ Our share based payment expenses are subject, among other factors, to share price volatility, volatility in SAP’s performance against the Tech PGI index and fluctuations in SAP’s workforce. The estimates in the table above are based on certain assumptions regarding these factors. Depending on the future development of these factors the total expense for 2011 may differ significantly from these estimates.

⁴⁾ The estimates provided above for share-based payment expenses are based on the share-based payment plans in place on the day of this document and grants under these plans in 2011 as currently planned by management. New share-based payment plans or changes to the existing plans may make the total amounts for 2011 differ significantly from these estimates.

⁵⁾ The estimates provided above for acquisition-related charges are based on the acquisitions performed by SAP until the day of this document. Further acquisitions may make the total amounts for 2011 differ significantly from these estimates.

Historically, every 1% impact on total revenue resulting from foreign currency movements has resulted in a 10-15 basis point movement in the operating margin.

If exchange rates remained unchanged at the June 2011 level for the remainder of the year, our 2011 total year Non-IFRS SSRS revenues at actual currencies as well as our Non-IFRS total revenues at actual currencies would both be approximately 2% lower than the respective constant currency numbers and our Non-IFRS operating margin at actual currencies would be 20bpts lower than the respective constant currency margin.

Goals for Liquidity, Finance, Investments and Dividends

Our goals for liquidity, finance, investments and dividends as discussed in our Annual Report 2010 are unchanged:

We have been in positive net liquidity since the end of the first quarter of 2011 and, because we seek to remain in that position at the end of the year, we do not expect to repurchase any stock for treasury in 2011 except as needed for our share-based payment plans. Rather, we will prioritize reducing debt. We will consider issuing new debt, such as bonds or U.S. private placements, only if market conditions are advantageous.

Excepting acquisitions, our planned capital expenditures for 2011 will be covered in full by operating cash flow.

We have not changed our objective of returning about 30% of our net income to our shareholders through dividend payments.

Premises on Which our Outlook is Based

In preparing our outlook guidance, we have taken into account all events known to us at the time we prepared these interim financial statements that could influence SAP’s business going forward.

Among the premises on which this outlook is based are those presented concerning economic development and our expectation there will not be any effects in 2011 from a major acquisition.

INTERIM MANAGEMENT REPORT     19

Medium-Term Prospects

Our medium-term prospects as discussed in our 2010 Annual Report and our 2010 annual report on Form 20 F did not change in the first half of 2011. We still aim to increase our annual total revenue to at least €20 billion by the middle of the present decade. Over the same period, we aim to widen our non-IFRS operating margin to 35% by average annual increments of up to 100 basis points. To achieve these objectives, we are planning to realign our organizational structure to further drive growth, innovation, and simplicity.

20     INTERIM REPORT JANUARY–JUNE 2011

CONSOLIDATED INTERIM FINANCIAL STATEMENTS — IFRS (Unaudited)
Consolidated Income Statements of SAP Group — Quarter	21
Consolidated Statements of Comprehensive Income of SAP Group — Quarter	22
Consolidated Income Statements of SAP Group — Half Year	23
Consolidated Statements of Comprehensive Income of SAP Group — Half Year	24
Consolidated Statements of Financial Position of Sap Group	25
Consolidated Statements of Changes in Equity of SAP Group	27
Consolidated Statements of Cash Flows of SAP Group	28
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(1) General Information about Consolidated Financial Statements	29
(2) Scope of Consolidation	29
(3) Summary of Significant Accounting Policies	29
(4) Business Combinations	30
(5) Employee Benefits Expense and Headcount	31
(6) Income Tax	32
(7) Earnings per Share	33
(8) Other Financial Assets	33
(9) Trade and Other Receivables	34
(10) Financial Liabilities	34
(11) Total Equity	34
(12) Contingent Liabilities	35
(13) Litigation and Claims	35
(14) Share-Based Payment Plans	37
(15) Other Financial Instruments	38
(16) Segment and Geographic Information	38
(17) Related Party Transactions	41
(18) Subsequent Events	41

CONSOLIDATED INTERIM FINANCIAL STATEMENTS – IFRS     21

CONSOLIDATED INCOME STATEMENTS
For the three months ended June 30

€ millions, unless otherwise stated	Note			2011		2010		Change in %
Software revenue					802		637		26
Support revenue					1,681		1,526		10
Subscription and other software-related service revenue					96		95		1
Software and software-related service revenue					2,579		2,258		14
Consulting revenue					579		528		10
Other service revenue					142		108		31
Professional services and other service revenue					721		636		13
Total revenue					3,300		2,894		14
Cost of software and software-related services					-495		-413		20
Cost of professional services and other services					-558		-497		12
Research and development					-468		-397		18
Sales and marketing					-743		-658		13
General and administration					-170		-156		9
Restructuring		(6	)		-1		-1		0
TomorrowNow litigation					-10		-2		>100
Other operating income/ expense, net					2		4		-50
Total operating expenses					-2,443		-2,120		15
Operating profit					857		774		11
Other non-operating income/ expense, net					-35		-86		-59
Finance income					20		12		67
Finance costs					-38		-24		58
Financial income, net					-18		-12		50
Profit before tax					804		676		19
Income tax expense		(6	)		-216		-185		17
Profit after tax					588		491		20
— Profit attributable to non-controlling interests					1		0		N/A
— Profit attributable to owners of parent					587		491		20
Earnings per share, basic in € *		(7	)		0.49		0.41		20
Earnings per share, diluted in € *		(7	)		0.49		0.41		20

* For the three months ended June 30, 2011 and 2010 the weighted average number of shares were 1,189 million (Diluted: 1,189 million) and 1,188 million (Diluted: 1,189 million), respectively (treasury stock excluded).

22     INTERIM REPORT JANUARY–JUNE 2011

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
for the three months ended June 30

€ millions	2011		2010
Profit after tax		588		491
Gains (losses) on exchange differences on translation, before tax		-12		142
Reclassification adjustments on exchange differences on translation, before tax		0		-11
Exchange differences on translation		-12		131
Gains (losses) on remeasuring available-for-sale financial assets, before tax		17		-7
Reclassification adjustments on available-for-sale financial assets, before tax		0		0
Available-for-sale financial assets		17		-7
Gains (losses) on cash flow hedges, before tax		-11		-40
Reclassification adjustments on cash flow hedges, before tax		0		11
Cash flow hedges		-11		-29
Actuarial gains (losses) on defined benefit plans, before tax		2		-5
Other comprehensive income before tax		-4		90
Income tax relating to components of other comprehensive income		-1		10
Other comprehensive income after tax		-5		100
Total comprehensive income		583		591
— attributable to non-controlling interests		1		1
— attributable to owners of parent		582		590

CONSOLIDATED INTERIM FINANCIAL STATEMENTS – IFRS     23

CONSOLIDATED INCOME STATEMENTS
For the six months ended June 30

€ millions, unless otherwise stated	Note			2011		2010		Change in %
Software revenue					1,385		1,101		26
Support revenue					3,336		2,920		14
Subscription and other software-related service revenue					185		184		1
Software and software-related service revenue					4,906		4,205		17
Consulting revenue					1,148		1,007		14
Other service revenue					270		191		41
Professional services and other service revenue					1,418		1,198		18
Total revenue					6,324		5,403		17
Cost of software and software-related services					-990		-812		22
Cost of professional services and other services					-1,134		-948		20
Research and development					-966		-790		22
Sales and marketing					-1,420		-1,215		17
General and administration					-347		-304		14
Restructuring		(6	)		-1		-1		0
TomorrowNow litigation					-12		-2		>100
Other operating income/ expense, net					0		0		0
Total operating expenses					-4,870		-4,072		20
Operating profit					1,454		1,331		9
Other non-operating income/ expense, net					-34		-122		-72
Finance income					49		27		81
Finance costs					-81		-39		>100
Financial income, net					-32		-12		>100
Profit before tax					1,388		1,197		16
Income tax expense		(6	)		-397		-319		24
Profit after tax					991		878		13
— Profit attributable to non-controlling interests					1		1		0
— Profit attributable to owners of parent					990		877		13
Earnings per share, basic in € *		(7	)		0.83		0.74		12
Earnings per share, diluted in € *		(7	)		0.83		0.74		12

* For the six months ended June 30, 2011 and 2010 the weighted average number of shares were 1,188 million (Diluted: 1,189 million) and 1,188 million (Diluted: 1,189 million), respectively (treasury stock excluded).

24     INTERIM REPORT JANUARY–JUNE 2011

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
for the six months ended June 30

€ millions	2011		2010
Profit after tax		991		878
Gains (losses) on exchange differences on translation, before tax		-168		272
Reclassification adjustments on exchange differences on translation, before tax		0		-17
Exchange differences on translation		-168		255
Gains (losses) on remeasuring available-for-sale financial assets, before tax		11		-1
Reclassification adjustments on available-for-sale financial assets, before tax		0		0
Available-for-sale financial assets		11		-1
Gains (losses) on cash flow hedges, before tax		19		-72
Reclassification adjustments on cash flow hedges, before tax		9		16
Cash flow hedges		28		-56
Actuarial gains (losses) on defined benefit plans, before tax		7		-10
Other comprehensive income before tax		-122		188
Income tax relating to components of other comprehensive income		-26		22
Other comprehensive income after tax		-148		210
Total comprehensive income		843		1,088
— attributable to non-controlling interests		1		1
— attributable to owners of parent		842		1,087

CONSOLIDATED INTERIM FINANCIAL STATEMENTS – IFRS     25

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
as at June 30 , 2011 and December 31, 2010

€ millions	Notes			2011		2010
Cash and cash equivalents					3,842		3,518
Other financial assets		(8	)		721		158
Trade and other receivables		(9	)		2,738		3,099
Other non-financial assets					250		181
Tax assets					129		187
Total current assets					7,680		7,143
Goodwill					8,213		8,428
Intangible assets					2,107		2,376
Property, plant, and equipment					1,463		1,449
Other financial assets		(8	)		480		475
Trade and other receivables		(9	)		78		78
Other non-financial assets					36		31
Tax assets					125		122
Deferred tax assets					714		737
Total non-current assets					13,216		13,696
Total assets					20,896		20,839

26     INTERIM REPORT JANUARY–JUNE 2011

€ millions	Notes			2011		2010
Trade and other payables					783		923
Tax liabilities					108		164
Financial liabilities		(10	)		136		142
Other non-financial liabilities					1,113		1,726
Provision TomorrowNow litigation					929		997
Other provisions					358		290
Provisions					1,287		1,287
Deferred income					2,161		911
Total current liabilities					5,588		5,153
Trade and other payables					37		30
Tax liabilities					418		369
Financial liabilities		(10	)		3,945		4,449
Other non-financial liabilities					90		85
Provisions					244		292
Deferred tax liabilities					513		574
Deferred income					64		63
Total non-current liabilities					5,311		5,862
Total liabilities					10,899		11,015
Issued capital					1,228		1,227
Share premium					394		337
Retained earnings					10,033		9,767
Other components of equity					-294		-142
Treasury shares					-1,374		-1,382
Equity attributable to owners of parent					9,987		9,807
Non-controlling interests					10		17
Total equity		(11	)		9,997		9,824
Equity and liabilities					20,896		20,839

CONSOLIDATED INTERIM FINANCIAL STATEMENT – IFRS     27

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
for the six months ended June 30

							Other Components of Equity
									Available-						Equity
									for-Sale						Attributable		Non-
	Issued		Share		Retained		Exchange		Financial		Cash Flow		Treasury		to Owners of		Controlling		Total
€ millions	Capital		Premium		Earnings		Differences		Assets		Hedges		Shares		Parent		Interests		Equity
January 1, 2010		1,226		317		8,571		-319		13		-11		-1,320		8,477		14		8,491
Profit after tax						877										877		1		878
Other comprehensive income						-3		255		-1		-41				210				210
Share-based compensation				-1												-1				-1
Dividends						-594										-594				-594
Issuance of shares under share-based payments programs		1		20												21				21
Purchase of treasury shares														-120		-120				-120
Reissuance of treasury shares under share-based payments programs				-5										91		86				86
June 30, 2010		1,227		331		8,851		-64		12		-52		-1,349		8,956		15		8,971
January 1, 2011		1,227		337		9,767		-131		16		-27		-1,382		9,807		17		9,824
Profit after tax						990										990		1		991
Other comprehensive income						4		-184		11		21				-148				-148
Share-based compensation				-11												-11				-11
Dividends						-713										-713				-713
Issuance of shares under share-based payments programs		1		30												31				31
Purchase of treasury shares														-158		-158				-158
Reissuance of treasury shares under share-based payments programs				38										166		204				204
Other						-15										-15		-8		-23
June 30, 2011		1,228		394		10,033		-315		27		-6		-1,374		9,987		10		9,997

28     INTERIM REPORT JANUARY–JUNE 2011

CONSOLIDATED STATEMENTS OF CASH FLOWS
for the six months ended June 30

€ millions	2011		2010
Profit after tax		991		878
Adjustments to reconcile profit after taxes to net cash provided by operating
Depreciation and amortization		357		225
Income tax expense		396		319
Finance income and finance costs, net		32		12
Gains/ losses on disposals of non-current assets		2		1
Decrease/ increase in sales and bad debt allowances on trade receivables		8		6
Other adjustments for non-cash items		8		18
Decrease/ increase in trade receivables		241		31
Decrease/ increase in other assets		-73		-197
Decrease/ increase in trade payables, provisions and other liabilities		-646		-675
Decrease/ increase in deferred income		1,353		1,108
Cashflows due to TomorrowNow litigation		-3		3
Interest paid		-77		-28
Interest received		37		19
Income taxes paid, net of refunds		-356		-438
Net cash flows from operating activities		2,270		1,282
Purchase of intangible assets and property, plant, equipment and business combinations		-248		-125
Proceeds from sales of intangible assets or property, plant, and equipment		18		17
Purchase of equity or debt instruments of other entities		-730		-651
Proceeds from sales of equity or debt instruments of other entities		186		689
Net cash flows from investing activities		-774		-70
Purchase of non-controlling interests		-21		0
Dividends paid		-713		-594
Purchase of treasury shares		-158		-120
Proceeds from reissuance of treasury shares		157		85
Proceeds from issuing shares (share-based compensation)		34		21
Proceeds from borrowings		519		1,063
Repayments of borrowings		-1,005		-6
Purchase of equity-based derivative instruments		-1		-14
Proceeds from exercise of equity-based derivative financial instruments		0		4
Net cash flows from financing activities		-1,188		439
Effect of foreign exchange rates on cash and cash equivalents		16		70
Net decrease/ increase in cash and cash equivalents		324		1,721
Cash and cash equivalents at the beginning of the period		3,518		1,884
Cash and cash equivalents at the end of the period		3,842		3,605

CONSOLIDATED INTERIM FINANCIAL STATEMENTS – IFRS     29

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

(1) General Information About Consolidated Interim Financial Statements

The accompanying consolidated interim financial statements of SAP AG and its subsidiaries (collectively, “we,” “us,” “our,” “SAP,” “Group,” and “Company”) have been prepared in accordance with the International Financial Reporting Standards (IFRSs). The designation IFRS includes all standards issued by the International Accounting Standards Board (IASB) and related interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC). The variances between the applicable IFRS standards as issued by the IASB and the standards as used by the European Union are not relevant to these financial statements. The consolidated interim financial statements for the period ended June 30, 2011 are in compliance with International Accounting Standard (IAS) 34.

Certain information and disclosures normally included in notes to annual financial statements prepared in accordance with IFRS have been condensed or omitted. We believe that the disclosures made are adequate and that the information is not misleading.

Our business activities are influenced by certain seasonal effects. Historically, our overall revenue tends to be highest in the fourth quarter. Interim results are therefore not necessarily indicative of results for a full year.

The Consolidated Financial Statements for 2010 are included in our 2010 Annual Report and our Annual Report 2010 on Form 20-F. Amounts reported in previous years have been reclassified as appropriate to conform to the current presentation. The adjustment of the allocation of the acquisition price also results in non-material changes to some of the amounts reported in previous years.

These unaudited condensed consolidated interim financial statements should be read in conjunction with SAP’s audited consolidated IFRS financial statements and notes thereto as of December 31, 2010.

Due to rounding, numbers presented throughout this document may not add up precisely to the totals we provide and percentages may not precisely reflect the absolute figures.

(2) Scope of Consolidation

The following table summarizes the change in the number of legal entities included in the consolidated financial statements:

Number of Legal Entities Consolidated in the Financial Statements

	German		Foreign		Total
January 1, 2010		19		144		163
Additions		4		58		62
Disposals		-2		-20		-22
December 31, 2010		21		182		203
Additions		1		2		3
Disposals		0		-5		-5
June 30 , 2011		22		179		201

The additions in the first half of 2011 relate to legal entities added in connection with foundations. The disposals are due to mergers and to liquidations of non-operating acquired legal entities.

The changes in the scope of companies in 2010 had an impact on the comparability with prior years and prior quarters. This is due to our acquisition of Sybase Inc. in the third quarter of 2010, which is significant to some items in the consolidated financial statements.

For additional information on our business combinations and the effect on our Consolidated Financial Statements, see note (4) or our Consolidated Financial Statements for 2010.

(3) Summary of Significant Accounting Policies

The interim financial statements were prepared based on the same accounting policies as those applied and described in the consolidated financial statements as at December 31, 2010. Our significant accounting policies are summarized in the notes to the consolidated financial statements. For further information, see note (3) in our Consolidated Financial Statements for 2010.

Newly Adopted Accounting Standards

The new accounting standards adopted in the first six months of 2011 did not have a material impact on our consolidated financial statements.

30     INTERIM REPORT JANUARY–JUNE 2011

New Accounting Standards Not Yet Adopted

In May 2011, the IASB issued IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities. IFRS 10 provides a single consolidation model that identifies control as the basis for consolidation for all types of entities and replaces IAS 27 Consolidated and Separate Financial Statements and SIC-12 Consolidation — Special Purpose Entities. IFRS 11 establishes principles for the financial reporting by parties to a joint arrangement and supersedes IAS 31 Interests in Joint Ventures and SIC-13 Jointly Controlled Entities — Non-monetary Contributions by Venturers. IFRS 12 combines, enhances and replaces the disclosure requirements for subsidiaries, joint arrangements, associates and unconsolidated structured entities. The new requirements are effective for annual periods beginning on or after January 1, 2013, with earlier application permitted. The European Union has not yet endorsed these new standards. We are currently determining the impact the new standards will have on our Consolidated Financial Statements.

In May 2011, the IASB issued IFRS 13 Fair Value Measurement. IFRS 13 defines fair value, sets out in a single IFRS a framework for measuring fair value and requires disclosures about fair value measurements. IFRS 13 applies when other IFRSs require or permit fair value measurements but does not introduce any new requirements to measure an asset or a liability at fair value, change what is measured at fair value in IFRSs or address how to present changes in fair value. The new requirements are effective for annual periods beginning on or after January 1, 2013, with earlier application permitted. The European Union has not yet endorsed the new standard. We are currently determining the impact the new standard will have on our Consolidated Financial Statements.

In June 2011, the IASB issued amendments to IAS 1 Presentation of Financial Statements (effective for annual periods beginning on or after July 1, 2012) and IAS 19 Employee Benefits (effective for annual periods beginning on or after January 1, 2013, with earlier application permitted). The amendments to IAS 1 aim to improve and align the presentation of items of other

comprehensive income in financial statements prepared in accordance with IFRS and US GAAP. The amendments to IAS 19 aim to improve the understanding of how defined benefit plans affect an entity’s financial position, financial performance and cash flows. The European Union has not yet endorsed the amended standards. We are currently determining the impact the amended standards will have on our Consolidated Financial Statements.

For additional information about new accounting standards not yet adopted, see note (3) in our Annual Report for 2010.

(4) Business Combinations

We acquired the following business in the first half of 2011:

Acquired Businesses

			Acquired
Business		Acquisition	Voting	Acquisition
Acquired	Sector	Type	Interest	Date
SECUDE AG, Emmetten, Switzerland	SECUDE is a privately held entity engaged in IT security software products and solutions.	Asset Purchase	n/a	February 1, 2011

We acquire businesses in specific areas of strategic interest to us. The acquisition in the first half of 2011 was not material to SAP.

Acquisitions of the prior year are described in the consolidated financial statements for 2010 in our 2010 Annual Report.

CONSOLIDATED INTERIM FINANCIAL STATEMENTS – IFRS     31

(5) Employee Benefits Expense and Headcount

Employee benefits expense comprises the following:

Employee Benefits Expense

			1/1-				1/1-
€ millions	Q2 2011		6/30/2011		Q2 2010		6/30/2010
Salaries		1,180		2,349		1,044		2,011
Social security expense		150		328		143		305
Pension expense		43		97		39		87
Share-based payment expense		32		83		13		18
Termination benefits		12		25		10		35
Employee-related restructuring expenses		0		0		1		1
Employee Benefits Expense		1,417		2,882		1,250		2,457

On June 30, 2011, the breakdown of our full-time equivalent employee numbers by function in SAP and by region was as follows:

Number of Employees (in Full-Time Equivalents)

	June 30, 2011								June 30, 2010
					Asia								Asia
					Pacific								Pacific
Full-time equivalents	EMEA		Americas		Japan		Total		EMEA		Americas		Japan		Total
Software and software-related services		3,905		2,010		2,603		8,518		3,479		1,422		2,100		7,001
Professional services and other services		6,823		3,884		2,392		13,099		6,407		3,544		2,243		12,194
Research and development		8,719		3,157		4,022		15,898		8,288		2,458		3,600		14,346
Sales and marketing		4,581		4,195		2,140		10,916		4,216		3,704		1,811		9,731
General and administration		2,032		1,049		516		3,597		1,891		717		418		3,026
Infrastructure		1,143		623		249		2,015		1,044		471		208		1,723
SAP Group (June 30)		27,203		14,918		11,922		54,043		25,325		12,316		10,380		48,021
SAP Group (average first six months)		27,163		14,853		11,828		53,844		25,271		12,097		10,291		47,659

32     INTERIM REPORT JANUARY–JUNE 2011

The allocations of expenses for share-based payments to the various expense items are as follows:

Share-Based payments

			1/ 1-				1/ 1-
			6/ 30/				6/ 30/
€ millions	Q2 2011		2011		Q2 2010		2010
Cost of software and software- related services		-3		-7		1		0
Cost of professional services and other services		-6		-14		-1		-1
Research and development		-9		-26		-7		-8
Sales and marketing		-8		-20		-3		-4
General and administration		-6		-17		-2		-4
Total share-based payments		-32		-84		-12		-17

In the second quarter of 2011 we issued a new tranche of the Share-Matching-Plan (SMP), as described in note (14). As part of this issuance, €22.5 million was recognized in expense immediately. In 2010, we only issued a tranche and recognized the corresponding expense in the third quarter.

(6) Income Tax

In the second quarter and the first half of 2011, income taxes and the effective tax rate, each compared with the second quarter and the first half of 2010, developed as follows:

Income Taxes

€ millions, unless stated otherwise	Q2 2011		H1 2011		Q2 2010		H1 2010
Profit before income tax		804		1,388		676		1,197
Income tax expense		-216		-397		-185		-319
Effective tax rate in %		26.9		28.6		27.4		26.6

CONSOLIDATED INTERIM FINANCIAL STATEMENTS – IFRS     33

(7) Earnings per Share

Starting in the third quarter of 2010, diluted EPS includes the dilutive effect of bonus shares granted under Share Matching Plan.

Earnings per Share

			1/ 1-				1/ 1-
€ millions, unless otherwise stated	Q2 2011		6/ 30/ 2011		Q2 2010		6/ 30/ 2010
Profit attributable to owners of parent		587		990		491		878
Issued ordinary shares		1,228		1,227		1,226		1,226
Effect of treasury shares		-39		-39		-38		-38
Weighted average number of shares in millions — basic		1,189		1,188		1,188		1,188
Dilutive effect of convertible bonds in millions		0		1		0		0
Dilutive effect of stock options in millions		0		0		1		1
Weighted average number of shares in millions — diluted		1,189		1,189		1,189		1,189
Basic earnings per share, in €		0.49		0.83		0.41		0.74
Diluted earnings per share, in €		0.49		0.83		0.41		0.74

(8) Other Financial Assets

Other financial assets comprise:

Other Financial Assets

	June 30, 2011
			Non-
€ millions	Current		Current		Total
Loans and other financial receivables		489		291		780
Debt investments		100		0		100
Equity investments		0		155		155
Available-for-sale financial assets		100		155		255
Derivatives		132		0		132
Investments in associates		0		34		34
Total		721		480		1,201

	December 31, 2010
			Non-
€ millions	Current		Current		Total
Loans and other financial receivables		42		328		370
Debt investments		0		0		0
Equity investments		0		107		107
Available-for-sale financial assets		0		107		107
Derivatives		116		0		116
Investments in associates		0		40		40
Total		158		475		633

34     INTERIM REPORT JANUARY–JUNE 2011

(9) Trade and Other Receivables

Trade and other receivables comprise:

Trade and Other Receivables

	June 30, 2011
			Non-
€ millions	Current		current		Total
Trade receivables, net		2,708		0		2,708
Other receivables		30		78		108
Total trade and other receivables		2,738		78		2,816

	December 31, 2010
			Non-
€ millions	Current		current		Total
Trade receivables, net		3,031		0		3,031
Other receivables		68		78		146
Total trade and other receivables		3,099		78		3,177

The carrying amounts of our trade receivables and related allowances were as follows:

Carrying Amounts of Trade Receivables

	June 30,		December
€ millions	2011		31, 2010
Gross carrying amount		2,864		3,187
Sales allowances charged to revenue		-111		-112
Allowance for doubtful accounts charged to expense		-45		-44
Carrying amount trade receivables, net		2,708		3,031

In our Consolidated Income Statement, bad debt allowances for a portfolio of trade receivables are recorded as other operating expense, whereas bad debt allowances for specific customer balances are recorded in cost of software and software-related services or cost of professional services and other services, depending on the transaction from which the trade receivable results. Sales allowances are recorded as an offset to the respective revenue item.

(10) Financial Liabilities

Financial liabilities comprise:

Financial Liabilities

	June 30, 2011
			Non-
€ millions	Current		current		Total
Bank loans		0		102		102
Private placement transactions		0		1,558		1,558
Bonds		0		2,193		2,193
Other financial liabilities		136		92		228
Financial liabilities		136		3,945		4,081

	December 31, 2010
			Non-
€ millions	Current		current		Total
Bank loans		1		1,098		1,099
Private placement transactions		0		1,069		1,069
Bonds		0		2,191		2,191
Other financial liabilities		141		91		232
Financial liabilities		142		4,449		4,591

(11) Total Equity

Issued Shares

As at June 30, 2011, SAP AG had 1,227,648,765 no-par issued shares (December 31, 2010: 1,226,822,697) issued with a calculated nominal value of €1 per share.

In the first six months of 2011, the number of issued shares increased by 826,068 shares, thereof 55,568 shares in the second quarter of 2011 (first half of 2010: 624,524; Q2 2010: 3,912), resulting from the exercise of awards granted under certain share-based payment programs.

Treasury Shares

On June 30, 2011, we held 38 million treasury shares, representing €38 million or 3.1% of capital stock.

In the first half of 2011, we acquired 3.6 million shares (Q2 2011: 0 million) for treasury at an average price of approximately €43.84 per share and disposed of 4.7 million shares (Q2 2011: 0.9 million) with a purchase price of

CONSOLIDATED INTERIM FINANCIAL STATEMENTS – IFRS     35

approximately €35.56 (Q2 2011: 36.05€) per share. Stock purchases and stock sales were mainly in connection with our share-based payment plans, which are described in Note (28) in our Annual Report for 2010.

In the first half of 2010, we acquired 3.5 million shares (Q2 2010: 0 million) at an average price of approximately €33.99 per share and we disposed of 2.6 million shares (Q2 2010: 0.1 million) with a purchase price of approximately €35.42 (Q2 2010: 35.29) per share. Stock purchases and stock sales were mainly in connection with our share-based payment plans, which are described in Note (28) in our Annual Report for 2010.

We do not have any dividend or voting rights associated with our treasury stock. In the first halfs of 2011 and 2010 we did not purchase any SAP American Depositary Receipts (ADRs). We did not hold any SAP ADRs on June 30, 2011, or on June 30, 2010.

(12) Contingent Liabilities

For a detailed description of our contingent liabilities, see our Annual Report 2010, Notes to the Consolidated Financial Statements section, Note (23). There have been no significant changes in contingent liabilities since December 31, 2010.

For information about contingent liabilities related to litigation, see Note (13).

(13) Litigation and Claims

We are subject to a variety of claims and lawsuits that arise from time to time in the ordinary course of our business, including proceedings and claims that relate to companies which we have acquired, and claims that relate to customers demanding indemnification for proceedings initiated against them based on their use of SAP software. We will continue to vigorously defend against all claims and lawsuits against us. We record a provision for such matters when it is probable that we have a present obligation that results from a past event, is reliably estimable and the settlement of which is probable to require an outflow of resources embodying economic benefits. For the TomorrowNow litigation, we have recorded a provision of €997 million. We currently believe that resolving all other claims and lawsuits against us, individually or in the aggregate, did not and will not have a material adverse effect on our business, financial position, profit, or cash flows. Consequently, the provisions currently recorded for these other claims and lawsuits are neither individually nor in aggregate material to SAP.

However, all claims and lawsuits involve risk and could lead to significant financial and reputational damage

to the parties involved. Because of significant inherent uncertainties related to these matters, there can be no assurance that our business, financial position, profit or cash flows will not be materially adversely affected nor can we reliably estimate the maximum possible loss in case of an unfavorable outcome.

For a description of the development of the provisions recorded for litigation, see Note (19b) in our Annual Report 2010.

Among the claims and lawsuits are the following:

Intellectual Property Litigation

In January 2007, German-based CSB-Systems AG (CSB) instituted legal proceedings in Germany against SAP. CSB alleges that SAP’s products infringe one or more of the claims of a German patent and a German utility model held by CSB. In its complaint, CSB has set the amount in dispute at €1 million and is seeking permanent injunctive relief. Within these proceedings CSB is not precluded from requesting damages in excess of the amount in dispute. In July 2007, SAP filed its response in the legal proceedings including a nullity action and cancellation proceeding against the patent and utility model, respectively. The nullity hearing on the German patent was held in January 2009 and the German court determined that the patent is invalid. On appeal in June 2011, the Federal Supreme Court also concluded the patent was invalid. The cancellation hearing for the utility model was held in May 2009 and the court determined that the utility model was invalid. CSB is appealing the invalidity determination of the utility model, however, the infringement hearing has been stayed pending the appeals.

In May 2010, CSB-Systems International, Inc. (CSB) instituted legal proceedings in the United States against SAP. CSB alleges that SAP’s products infringe one or more of the claims in one patent held by CSB. In its complaint, CSB seeks unspecified monetary damages and permanent injunctive relief. The Markman hearing was held in June 2011. The trial is scheduled for March 2012.

In March 2007, United States-based Oracle Corporation and certain of its subsidiaries (Oracle) instituted legal proceedings in the United States against TomorrowNow, Inc., its parent company SAP America, Inc. and SAP America’s parent company SAP AG (SAP). Oracle filed several amended complaints between 2007 and 2009. As amended, the lawsuit alleges copyright infringement, violations of the Federal Computer Fraud and Abuse Act and the California Computer Data Access and Fraud Act, unfair competition, intentional and negligent interference with prospective economic advantage, and civil

36     INTERIM REPORT JANUARY–JUNE 2011

conspiracy. The lawsuit alleges that SAP unlawfully copied and misappropriated proprietary, copyrighted software products and other confidential materials developed by Oracle to service its own customers. The lawsuit seeks injunctive relief and monetary damages, including punitive damages, alleged by Oracle to be in the billions of U.S. dollars. The trial was held in November 2010. Prior to trial, SAP AG, SAP America and TomorrowNow stipulated to liability for certain claims, and SAP agreed to pay Oracle US$120 million for attorneys’ fees. After the trial, the jury returned a damages verdict of US$1.3 billion. The judgment which was issued on February 3, 2011, additionally provides for prejudgment interest of US$15 million. The judgment amount is also subject to post-judgment interest which accrues from the time judgment is entered.

SAP has secured a bond for an appropriate amount for purposes of the post-trial process and appeal phase of this litigation.

The jury based its verdict on the theory of a hypothetical license, that is, the value of what TomorrowNow would have paid if it had negotiated with Oracle a license for the copyrights infringed by TomorrowNow. Before and during the course of the trial, various damages amounts had been presented by the parties to the litigation. They included the following:

a) Before the trial, Oracle had requested damages in excess of US$3.5 billion based on alleged “saved acquisition costs”; the court dismissed that damage claim based on a pretrial motion, but Oracle has the right to appeal that dismissal.

b) During the trial, Oracle’s damages experts presented an amount of US$408 million based on lost profits and disgorgement of infringer’s profit.

c) During the trial, members of Oracle management presented, as part of their testimonies, amounts of up to US$5 billion. Oracle’s damages expert presented a damages estimate of “at least” US$1.655 billion under a hypothetical license theory. Oracle’s counsel asked the jury to award “somewhere between US$1.65 and US$3 billion.”

d) During the trial, the damages expert for TomorrowNow and SAP presented an amount of US$28 million based on lost profits and infringer’s profits or, alternatively, US$40.6 million based on a hypothetical license theory. Counsel for SAP and TomorrowNow asked the jury to award US$28 million.

We believed both before and during the trial and continue to believe that the hypothetical license

theory is not an appropriate basis for calculating the damages. Instead, we believe that damages should be based on lost profits and infringer’s profits. As of the date of this report, SAP has filed post-trial motions that ask the judge to overturn the judgment. The hearing on the post-trial motions was held in July 2011. Based on the outcome of the post-trial motions, SAP will decide whether to appeal.

Additionally, in June 2007, SAP became aware that the United States Department of Justice (U.S. DOJ) had opened an investigation concerning related issues and had issued subpoenas to SAP and TomorrowNow. SAP and TomorrowNow are cooperating with the investigation and are responding to the original subpoenas and additional subpoenas issued by the Department of Justice.

In April 2007, United States-based Versata Software, Inc. (formerly Trilogy Software, Inc.) (Versata) instituted legal proceedings in the United States against SAP. Versata alleges that SAP’s products infringe one or more of the claims in each of five patents held by Versata. In its complaint, Versata seeks unspecified monetary damages and permanent injunctive relief. The trial was held in August 2009. The jury returned a verdict in favor of Versata and awarded Versata US$138.6 million for past damages. In January 2011, the court vacated the jury’s damages award and ordered a new trial on damages in May 2011. The re-trial was held in May 2011. The jury returned a verdict in favor of Versata and awarded Versata US$345 million for past damages. Versata is seeking an injunction and an injunction hearing was held in June 2011. SAP has filed post-trial motions in July 2011.

In August 2007, United States-based elcommerce.com, Inc. (elcommerce) instituted legal proceedings in the United States against SAP. elcommerce alleges that SAP’s products infringe one or more of the claims in one patent held by elcommerce. In its complaint, elcommerce seeks unspecified monetary damages and permanent injunctive relief. The court in East Texas granted SAP’s request to transfer the litigation from East Texas to Pennsylvania. Subsequent to the Markman ruling by the court, the parties agreed to the entry of final judgment regarding non-infringement by SAP. elcommerce has appealed the court’s Markman ruling.

In February 2010, United States-based TecSec, Inc. (TecSec) instituted legal proceedings in the United States against SAP, Sybase, IBM and many other defendants. TecSec alleges that SAP’s products infringe one or more of the claims in five patents held by TecSec. In its complaint, TecSec seeks unspecified monetary damages and permanent injunctive relief. The trial has not yet been scheduled. The legal

CONSOLIDATED INTERIM FINANCIAL STATEMENTS – IFRS     37

proceedings have been stayed against all defendants pending the outcome of an appeal by TecSec regarding the court’s determination that IBM does not infringe the patents.

In April 2010, SAP instituted legal proceedings (a Declaratory Judgment action) in the United States against Wellogix, Inc. and Wellogix Technology Licensing, LLC (Wellogix). The lawsuit seeks a declaratory judgment that five patents owned by Wellogix are invalid and/or not infringed by SAP. The trial has not yet been scheduled. The legal proceedings have been stayed pending the outcome of re-examinations filed with the U.S. Patent and Trademark Office.

Other Litigation

In April 2008, South African-based Systems Applications Consultants (PTY) Limited (Securinfo) instituted legal proceedings in South Africa against SAP. Securinfo alleges that SAP has caused one of its subsidiaries to breach a software distribution agreement with Securinfo. In its complaint, Securinfo seeks damages of approximately €610 million plus interest. In September 2009, SAP filed a motion to dismiss. A trial date which was scheduled for June 2011 has been postponed. No new trial date has been scheduled yet.

(14) Share-Based Payment Plans

For a detailed description of our share-based payment plans, see the SAP Annual Report 2010, Notes to the Consolidated Financial Statements section, Note (28), or our Annual Report 2010 on Form 20-F.

In June 2011, we issued the following share-based payment plans to our employees and the members of the Executive Board:

Under the Share Matching Plan 2011 (SMP 2011), SAP offered its employees the opportunity to purchase SAP AG shares at a discount of 40%. The number of SAP shares an eligible employee was able to purchase was limited to a percentage of the employee’s annual base salary. After a holding period of three years, the employees receive one SAP share free of charge for every three shares held. The terms for the members of the senior leadership team (SLT) are different. Instead of receiving a discount, they are granted two bonus shares for every three shares acquired and held during the three-year vesting period. The participants purchased 1.3 million SAP shares in aggregate at a discounted share price of €26.44. The discount of €22.5 million was expensed immediately. The fair value of the right to a bonus share was estimated at grant date at €39.69 per share using a risk-free interest rate of 1.95%, a dividend yield of 1.70% and an expected life of three years.

Under the Stock Option Plan 2011 (SOP 2011), we granted 5.2 million cash-based virtual stock options to members of the SLT, to SAP’s top rewards (top talents and top performers) and to members of the Executive Board.

The vesting period for the SLT and top rewards is three years and the contractual term of the program is six years. The exercise price is €46.23 and the fair value at grant date was €8.22.

The holding period for the members of the Executive Board is four years with a contractual term of seven years. The exercise price is €48.33 and the fair value at grant date was €8.45.

The outstanding equity-settled options, convertible bonds, and SMPs entitle their holders to the following numbers of shares:

38   INTERIM REPORT JANUARY–JUNE 2011

Outstanding Options, Convertible Bonds and Restricted Stocks

number in thousands

	June 30,		December
	2011		31, 2010
Stock Option Plan 2002		0		5,342
Long Term Incentive 2000 Plan (convertible bonds)		3,303		15,889
Long Term Incentive 2000 Plan (stock options)		867		1,680
Share Matching Plan 2010 (Bonus shares)		545		564
Share Matching Plan 2011 (Bonus shares)		481		0

(15) Other Financial Instruments

A detailed overview of our other financial instruments, financial risk factors and the management of financial risks are presented in notes (25) to (27) to our consolidated financial statements for 2010, which are included in our Annual Report 2010 and our Annual Report 2010 on Form 20-F.

(16) Segment and Geographic Information

For information about the basis of SAP’s segment reporting and for information on SAP’s operating segments, see the SAP Annual Report 2010, Notes to the Consolidated Financial Statements section, Note (29).

The following tables present external revenue and profit from our reportable segments, a reconciliation of total external revenue from reportable segments to total consolidated revenue as reported in the IFRS consolidated income statements, and a reconciliation of total segment profit to profit before taxes as reported in the consolidated income statements.

We acquired Sybase on July 26, 2010. Therefore, there are no Sybase numbers disclosed in the first half of 2010 for external revenue and profit.

External Revenue and Results from Reportable Segments

Q2 2011

€ millions	Product		Consulting		Training		Sybase		Total
External revenue from reportable segments		2,298		711		92		202		3,303
Segment profit from reportable segments		1,275		201		36		40		1,552
Depreciation and amortization		-2		-3		0		-4		-9

Q2 2010

€ millions	Product		Consulting		Training		Sybase		Total
External revenue from reportable segments		2,126		658		92		0		2,876
Segment profit from reportable segments		1,201		165		36		0		1,402
Depreciation and amortization		-4		-2		0		0		-6

CONSOLIDATED INTERIM FINANCIAL STATEMENTS – IFRS   39

1/ 1/ -6/ 30 / 2011

€ millions	Product		Consulting		Training		Sybase		Total
External revenue from reportable segments		4,357		1,405		169		406		6,337
Segment profit from reportable segments		2,430		376		59		87		2,952
Depreciation and amortization		-7		-5		0		-8		-20

1/ 1/ -6/ 30 / 2010

€ millions	Product		Consulting		Training		Sybase		Total
External revenue from reportable segments		3,968		1,246		165		0		5,379
Segment profit from reportable segments		2,255		313		58		0		2,626
Depreciation and amortization		-8		-3		-1		0		-12

40   INTERIM REPORT JANUARY–JUNE 2011

Reconciliation of Revenues and Segment Results

	Q2		1/ 1/-		Q2		1/ 1/-
€ millions	2011		6/ 30/ 2011		2010		6/ 30/ 2010
External revenue from reportable segments		3,303		6,337		2,876		5,379
External revenue from services provided outside of the reportable segments		5		12		18		24
Adjustment support revenue		-8		-25		0		0
Total revenue		3,300		6,324		2,894		5,403
Segment profit from reportable segments		1,552		2,952		1,402		2,626
External revenue from services provided outside of the reportable segments		5		12		18		24
Development expense, not included in the segment result - management view		-356		-785		-446		-883
Administration and other corporate expenses, not included in the segment result — management view		-183		-381		-120		-296
Restructuring		-1		-1		-1		-1
Share-based payment expense		-32		-83		-13		-18
Adjustment support revenue		-8		-25		0		0
TomorrowNow litigation		-10		-13		0		0
Acquisition-related charges		-110		-222		-64		-118
Loss from discontinued operations		0		0		-2		-3
Operating profit		857		1,454		774		1,331
Other non-operating income/ expense, net		-35		-34		-86		-122
Finance income, net		-18		-32		-12		-12
Profit before tax		804		1,388		676		1,197

Geographic Information

The amounts for sales by destination in the following tables are based on the location of customers.

Software Revenue by Region

			1/ 1/-				1/ 1/-
	Q2		6/ 30/		Q2		6/ 30/
€ millions	2011		2011		2010		2010
EMEA1)		322		573		241		459
Americas		318		548		269		440
APJ2)		163		264		127		201
SAP Group		802		1,385		637		1,101

1)	Europe, Middle East, and Africa
2)	Asia Pacific Japan

Software and Software Related Service Revenue by Sales Destination

			1/ 1/-				1/ 1/-
	Q2		6/ 30/		Q2		6/ 30/
€ millions	2011		2011		2010		2010
Germany		397		728		360		671
Rest of EMEA		852		1,647		718		1,409
Total EMEA		1,249		2,375		1,078		2,079
United States		675		1,295		616		1,087
Rest of Americas		230		451		207		399
Total Americas		904		1,746		822		1,485
Japan		137		261		111		208
Rest of APJ		289		525		247		432
Total APJ		426		785		358		641
SAP Group		2,579		4,906		2,258		4,205

CONSOLIDATED INTERIM FINANCIAL STATEMENTS — IFRS   41

Revenue by Sales Destination

			1/ 1/-				1/ 1/-
	Q2		6/ 30/		Q2		6/ 30/
€ millions	2011		2011		2010		2010
Germany		554		1,040		506		949
Rest of EMEA		1,060		2,057		884		1,743
EMEA		1,614		3,097		1,390		2,692
United States		884		1,703		802		1,422
Rest of Americas		304		596		275		522
Americas		1,187		2,299		1,077		1,944
Japan		153		292		125		235
Rest of APJ		345		636		302		531
APJ		498		929		427		767
SAP Group		3,300		6,324		2,894		5,403

(17) Related Party Transactions

Certain Executive Board and Supervisory Board members of SAP AG currently hold (or have held within the last year) positions of significant responsibility with other entities (see the SAP Annual Report 2010, Notes to the Consolidated Financial Statements section, Note (30)). We have relationships with certain of these entities in the ordinary course of business whereby we buy and sell a wide variety of services and products at prices believed to be consistent with those negotiated at arm’s length between unrelated parties.

During the reporting period we had no related party transactions that had a material effect on our business, financial position, or results in the reporting period.

For further information on related party transactions, see the SAP Annual Report 2010, Notes to the Consolidated Financial Statements section, Note (31).

(18) Subsequent Events

In July 2011, Angelika Dammann, a member of the Executive Board, left SAP for personal reasons. She was our chief human relations officer and labor relations director. SAP CFO Werner Brandt assumed Dammann’s global HR leadership and labor relations role on an interim basis.

Release of the Interim Financial Statements

The Executive Board of SAP AG approved these Consolidated Interim Financial Statements for the period ending June 30, 2010 for issuance on July 26, 2011.

42   INTERIM REPORT JANUARY–JUNE 2011

RESPONSIBILITY STATEMENT

To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the consolidated interim financial statements give a true and fair view of the assets, finances and operating results of the Group, and the interim Management Report of the Group includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year.

Walldorf, July 26, 2011

SAP AG

Walldorf, Baden

The Executive Board

Bill McDermott	Jim Hagemann Snabe
Werner Brandt	Gerhard Oswald
Vishal Sikka

ADDITIONAL FINANCIAL INFORMATION     43

ADDITIONAL FINANCIAL INFORMATION
(UNAUDITED)
IFRS AND NON-IFRS FINANCIAL DATA

RECONCILIATION FROM NON-IFRS NUMBERS TO IFRS NUMBERS

The following tables present a reconciliation from our non-IFRS numbers (including our non-IFRS at constant currency numbers) to the respective most comparable IFRS numbers. Note: Our non-IFRS numbers are not prepared under a comprehensive set of accounting rules or principles.

	Three months ended June 30
	2011										2010						Change in %
									Non-IFRS												Non-IFRS
							Currency		constant												constant
€ millions, unless otherwise stated	IFRS		Adj.*		Non-IFRS*		impact**		currency**		IFRS		Adj.*		Non-IFRS*		IFRS		Non-IFRS*		currency**
Non-IFRS Revenue Numbers
Software revenue		802		0		802		58		860		637		0		637		26		26		35
Support revenue		1,681		8		1,689		64		1,753		1,526		0		1,526		10		11		15
Subscription and other software-related service revenue		96		0		96		2		98		95		0		95		1		1		3
Software and software-related service revenue		2,579		8		2,587		124		2,711		2,258		0		2,258		14		15		20
Consulting revenue		579		0		579		28		607		528		0		528		10		10		15
Other service revenue		142		0		142		6		148		108		0		108		31		31		37
Professional services and other service revenue		721		0		721		35		756		636		0		636		13		13		19
Total revenue		3,300		8		3,308		158		3,466		2,894		0		2,894		14		14		20
Non-IFRS Operating Expense Numbers
Cost of software and software-related services		-495		69		-426						-413		38		-375		20		14
Cost of professional services and other services		-558		11		-547						-497		2		-495		12		11
Research and development		-468		18		-450						-397		8		-389		18		16
Sales and marketing		-743		39		-704						-658		18		-640		13		10
General and administration		-170		6		-164						-156		10		-146		9		12
Restructuring		-1		1		0						-1		1		0		0		0
TomorrowNow litigation		-10		10		0						-2		2		0		>100		0
Other operating income/ expense, net		2		0		2						4		0		4		-50		-50
Total operating expenses		-2,443		154		-2,289		-102		-2,391		-2,120		80		-2,040		15		12		17
Non-IFRS Profit Numbers
Operating profit		857		162		1,019		56		1,075		774		80		854		11		19		26
Other non-operating income/ expense, net		-35		0		-35						-86		11		-75		-59		-53
Finance income		20		0		20						12		0		12		67		67
Finance costs		-38		0		-38						-24		0		-24		58		58
Finance income, net		-18		0		-18						-12		0		-12		50		50
Profit before tax		804		162		966						676		91		767		19		26
Income tax expense		-216		-47		-263						-185		-20		-205		17		28
Profit after tax		588		115		703						491		71		562		20		25
Profit attributable to non-controlling interests		1		0		1						0		0		0		N/ A		N/ A
Profit attributable to owners of parent		587		115		702						491		71		562		20		25
Non-IFRS Key Ratios
Operating margin in %		26.0				30.8				31.0		26.7				29.5	-0.7 pp		1.3 pp		1.5 pp
Effective tax rate in %		26.9				27.2						27.4				26.7	-0.5 pp		0.5 pp
Earnings per share, basic in €		0.49				0.59						0.41				0.47		20		26

*

Adjustments in the revenue line items are for support revenue that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges, share-based compensation expenses, restructuring expenses and discontinued activities.

**

Constant currency revenue and operating income figures are calculated by translating revenue and operating income of the current period using the average exchange rates from the previous year’s respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s respective period.

44   INTERIM REPORT JANUARY–JUNE 2011

	Six months ended June 30
	2011										2010						Change in %
									Non-IFRS												Non-IFRS
							Currency		constant												constant
€ millions, unless otherwise stated	IFRS		Adj.*		Non-IFRS*		impact**		currency**		IFRS		Adj.*		Non-IFRS*		IFRS		Non-IFRS*		currency**
Non-IFRS Revenue Numbers
Software revenue		1,385		0		1,385		52		1,437		1,101		0		1,101		26		26		31
Support revenue		3,336		25		3,361		14		3,375		2,920		0		2,920		14		15		16
Subscription and other software-related service revenue		185		0		185		-1		184		184		0		184		1		1		0
Software and software-related service revenue		4,906		25		4,931		66		4,997		4,205		0		4,205		17		17		19
Consulting revenue		1,148		0		1,148		15		1,163		1,007		0		1,007		14		14		15
Other service revenue		270		0		270		2		272		191		0		191		41		41		42
Professional services and other service revenue		1,418		0		1,418		18		1,436		1,198		0		1,198		18		18		20
Total revenue		6,324		25		6,349		84		6,433		5,403		0		5,403		17		18		19
Non-IFRS Operating Expense Numbers
Cost of software and software-related services		-990		146		-844						-812		79		-733		22		15
Cost of professional services and other services		-1,134		24		-1,110						-948		3		-945		20		17
Research and development		-966		41		-925						-790		11		-779		22		19
Sales and marketing		-1,420		77		-1,343						-1,215		31		-1,184		17		13
General and administration		-347		18		-329						-304		13		-291		14		13
Restructuring		-1		1		0						-1		1		0		0		0
TomorrowNow litigation		-12		12		0						-2		2		0		>100		0
Other operating income/ expense, net		0		0		0						0		0		0		0		0
Total operating expenses		-4,870		319		-4,551		-56		-4,607		-4,072		139		-3,933		20		16		17
Non-IFRS Profit Numbers
Operating profit		1,454		344		1,798		28		1,826		1,331		139		1,470		9		22		24
Other non-operating income/ expense, net		-34		0		-34						-122		17		-105		-72		-68
Finance income		49		0		49						27		0		27		81		81
Finance costs		-81		0		-81						-39		0		-39		>100		>100
Finance income, net		-32		0		-32						-12		0		12		>100		>100
Profit before tax		1,388		344		1,732						1,197		157		1,354		16		28
Income tax expense		-397		-104		-501						-319		-35		-354		24		42
Profit after tax		991		240		1,231						878		122		1,000		13		23
Profit attributable to non-controlling interests		1		0		1						1		0		1		0		0
Profit attributable to owners of parent		990		240		1,230						877		122		999		13		23
Non-IFRS Key Ratios
Operating margin in %		23.0				28.3				28.4		24.6				27.2	-1.6 pp		1.1 pp		1.2 pp
Effective tax rate in %		28.6				28.9						26.6				26.1	2.0 pp		2.8 pp
Earnings per share, basic in €		0.83				1.04						0.74				0.84		12		24

*

Adjustments in the revenue line items are for support revenue that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges, share-based compensation expenses, restructuring expenses and discontinued activities.

**

Constant currency revenue and operating income figures are calculated by translating revenue and operating income of the current period using the average exchange rates from the previous year’s respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s respective period.

ADDITIONAL FINANCIAL INFORMATION      45

REVENUE BY REGION

The following tables present our IFRS and non-IFRS revenue by region based on customer location. The table also presents a reconciliation from our non-IFRS revenue (including our non-IFRS revenue at constant currency) to the respective most comparable IFRS revenue. Note: Our non-IFRS revenues are not prepared under a comprehensive set of accounting rules or principles.

	Three months ended June 30
	2011										2010						Change in %
									Non-IFRS												Non-IFRS
							Currency		constant												constant
€ millions	IFRS		Adj.*		Non-IFRS*		impact* *		currency* *		IFRS		Adj.*		Non-IFRS*		IFRS		Non-IFRS*		currency* *
Software revenue by region
EMEA		322		0		322		5		327		241		0		241		34		34		36
Americas		318		0		318		45		363		269		0		269		18		18		35
Asia Pacific Japan		163		0		163		8		171		127		0		127		28		28		35
Software revenue		802		0		802		58		860		637		0		637		26		26		35
Software and software-related service revenue by region
Germany		397		0		397		0		397		360		0		360		10		10		10
Rest of EMEA		852		2		854		3		857		718		0		718		19		19		19
Total EMEA		1,249		2		1,251		3		1,254		1,078		0		1,078		16		16		16
United States		675		4		679		96		775		616		0		616		10		10		26
Rest of Americas		230		1		231		12		243		207		0		207		11		12		17
Total Americas		904		5		909		109		1,018		822		0		822		10		11		24
Japan		137		0		137		2		139		111		0		111		23		23		25
Rest of Asia Pacific Japan		289		0		289		11		300		247		0		247		17		17		21
Total Asia Pacific Japan		426		1		427		12		439		358		0		358		19		19		23
Software and software-related service revenue		2,579		8		2,587		124		2,711		2,258		0		2,258		14		15		20
Total revenue by region
Germany		554		0		554		0		554		506		0		506		9		9		9
Rest of EMEA		1,060		2		1,062		4		1,066		884		0		884		20		20		21
Total EMEA		1,614		2		1,616		4		1,620		1,390		0		1,390		16		16		17
United States		884		4		888		124		1,012		802		0		802		10		11		26
Rest of Americas		304		1		305		16		321		275		0		275		11		11		17
Total Americas		1,187		5		1,192		141		1,333		1,077		0		1,077		10		11		24
Japan		153		0		153		2		155		125		0		125		22		22		24
Rest of Asia Pacific Japan		345		0		345		13		358		302		0		302		14		14		19
Total Asia Pacific Japan		498		1		499		14		513		427		0		427		17		17		20
Total revenue		3,300		8		3,308		158		3,466		2,894		0		2,894		14		14		20

*	Adjustments in the revenue line items are for support revenue that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules.
**	Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year’s respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s respective period.

46      INTERIM REPORT JANUARY–JUNE 2011

	Six months ended June 30
	2011										2010						Change in %
									Non-IFRS												Non-IFRS
							Currency		constant												constant
€ millions	IFRS		Adj.*		Non-IFRS*		impact* *		currency* *		IFRS		Adj.*		Non-IFRS*		IFRS		Non-IFRS*		currency* *
Software revenue by region
EMEA		573		0		573		2		575		459		0		459		25		25		25
Americas		548		0		548		46		594		440		0		440		25		25		35
Asia Pacific Japan		264		0		264		4		268		201		0		201		31		31		33
Software revenue		1,385		0		1,385		52		1,437		1,101		0		1,101		26		26		31
Software and software-related service revenue by region
Germany		728		0		728		0		728		671		0		671		8		8		8
Rest of EMEA		1,647		7		1,654		-16		1,638		1,409		0		1,409		17		17		16
Total EMEA		2,375		7		2,382		-16		2,366		2,079		0		2,079		14		15		14
United States		1,295		14		1,309		93		1,402		1,087		0		1,087		19		20		29
Rest of Americas		451		2		453		2		455		399		0		399		13		14		14
Total Americas		1,746		16		1,762		96		1,858		1,485		0		1,485		18		19		25
Japan		261		1		262		-11		251		208		0		208		25		26		21
Rest of Asia Pacific Japan		525		1		526		-4		522		432		0		432		22		22		21
Total Asia Pacific Japan		785		2		787		-14		773		641		0		641		22		23		21
Software and software-related service revenue		4,906		25		4,931		66		4,997		4,205		0		4,205		17		17		19
Total revenue by region
Germany		1,040		0		1,040		0		1,040		949		0		949		10		10		10
Rest of EMEA		2,057		7		2,064		-21		2,043		1,743		0		1,743		18		18		17
Total EMEA		3,097		7		3,104		-21		3,083		2,692		0		2,692		15		15		15
United States		1,703		14		1,717		120		1,837		1,422		0		1,422		20		21		29
Rest of Americas		596		2		598		2		600		522		0		522		14		15		15
Total Americas		2,299		16		2,315		122		2,437		1,944		0		1,944		18		19		25
Japan		292		1		293		-11		282		235		0		235		24		25		20
Rest of Asia Pacific Japan		636		1		637		-6		631		531		0		531		20		20		19
Total Asia Pacific Japan		929		2		931		-18		913		767		0		767		21		21		19
Total revenue		6,324		25		6,349		84		6,433		5,403		0		5,403		17		18		19

*	Adjustments in the revenue line items are for support revenue that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules.
**	Constant currency revenue figures are calculated by translating revenue of the current period using the average exchange rates from the previous year’s respective period instead of the current period. Constant currency period-over-period changes are calculated by comparing the current year’s non-IFRS constant currency numbers with the non-IFRS number of the previous year’s respective period.

For a more detailed description of these adjustments and their limitations as well as our constant currency and free cash flow figures see Explanations of Non-IFRS Measures online (www.sap.com/corporate-en/investors/reports).

ADDITIONAL FINANCIAL INFORMATION     47

MULTI-QUARTER SUMMARY

(IFRS and Non-IFRS)

MULTI-QUARTER SUMMARY

(IFRS and non-IFRS; preliminary and unaudited)

	Q1		Q2		Q3		Q4		TY		Q1		Q2
€ millions, unless otherwise stated	2010		2010		2010		2010		2010		2011		2011
Software revenue (IFRS)		464		637		656		1,507		3,265		583		802
Revenue adjustment*		0		0		0		0		0		0		0
Software revenue (non-IFRS)		464		637		656		1,507		3,265		583		802
Support revenue (IFRS)		1,394		1,526		1,559		1,654		6,133		1,655		1,681
Revenue adjustment*		0		0		36		38		74		17		8
Support revenue (non-IFRS)		1,394		1,526		1,595		1,692		6,207		1,672		1,689
Subscription and other Software-related service revenue (IFRS)		89		95		101		112		396		89		96
Revenue adjustment*		0		0		0		0		0		0		0
Subscription and other Software-related service revenue (non-IFRS)		89		95		101		112		396		89		96
Software and Software-related service revenue (IFRS)		1,947		2,258		2,316		3,273		9,794		2,327		2,579
Revenue adjustment*		0		0		36		38		74		17		8
Software and Software-related service revenue (non-IFRS)		1,947		2,258		2,352		3,311		9,868		2,344		2,587
Total revenue (IFRS)		2,509		2,894		3,003		4,058		12,464		3,024		3,300
Revenue adjustment*		0		0		36		38		74		17		8
Total revenue (non-IFRS)		2,509		2,894		3,039		4,096		12,538		3,041		3,308
Operating profit (IFRS)		557		774		716		544		2,591		597		857
Revenue adjustment*		0		0		36		38		74		17		8
Expense adjustment*		59		80		163		1,041		1,342		165		154
Operating profit (non-IFRS)		617		854		915		1,622		4,007		779		1,019
Operating margin (IFRS) in %		22.2		26.7		23.8		13.4		20.8		19.7		26.0
Operating margin (non-IFRS) in %		24.6		29.5		30.1		39.6		32.0		25.6		30.8
Effective tax rate (IFRS) in %		25.7		27.4		27.3		4.0		22.5		30.9		26.9
Effective tax rate (non-IFRS) in %		25.2		26.7		28.9		27.3		27.3		31.0		27.2
Earnings per share, basic in € (IFRS)		0.33		0.41		0.42		0.37		1.52		0.34		0.49
Earnings per share, basic in € (non-IFRS)		0.37		0.47		0.53		0.94		2.30		0.44		0.59
Net cash flows from Operating activities		772		510		780		870		2,932		1,592		678
Purchases of intangible assets and property, plant and equipment		-57		-68		-75		-134		-334		-141		-107
Free cash flow		715		442		705		736		2,598		1,451		571
Days sales outstanding (DSO) in days**		74		73		70		65		65		66		63
Headcount ***		47,598		48,021		52,921		53,513		53,513		53,872		54,043
Total revenue per employee in thousands of € (IFRS)		53		60		57		76		233		56		61
Operating profit per employee in thousands of € (IFRS)		12		16		14		10		48		11		16

*	Adjustments in the revenue line items are for support revenue that entities acquired by SAP would have recognized had they remained stand-alone entities but that SAP is not permitted to recognize as revenue under IFRS as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges, share-based compensation expenses, restructuring expenses and discontinued activities.
**	Days’ Sales Outstanding measures the length of time it takes to collect receivables. SAP calculates DSO by dividing the average invoiced accounts receivables balance of the last 12 months by the average monthly sales of the last 12 months.
***	In full-time equivalents at quarter end

48     INTERIM REPORT JANUARY–JUNE 2011

Additional Information

FINANCIAL CALENDAR

October 26, 2011

Third-quarter 2011 earnings release, telephone conference

January 25, 2012

Fourth-quarter and preliminary full year 2011 earnings release, analyst conference

April 25, 2012

First-quarter 2012 earnings release, telephone conference

May 23, 2012

Annual General Meeting of Shareholders, Mannheim, Germany

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From our investor relations Web site you can also access the Annual Report for 2010 and the Annual Report for 2010 on Form 20-F online or you can download the PDF version.

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OVERALL RESPONSIBILITY:

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Corporate Financial Reporting
Published on July 27, 2011

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