exv99w1

Exhibit 99.1

For Immediate Release
July 29, 2008

SAP Reports Strong Growth in Software and Software-Related Service
Revenues and Refines Annual Outlook to Reach Upper-End of Range

WALLDORF – July 29, 2008 – SAP AG (NYSE: SAP) today announced its preliminary financial results for the second quarter and six months ended June 30, 2008.

HIGHLIGHTS – Second Quarter 2008


	SAP - Second Quarter 2008*
	U.S. GAAP							Non-GAAP**
															% change
					%							%			constant
€ million	Q2/2008		Q2/2007		change			Q2/2008		Q2/2007		change			currency***

Software revenues		898		716		25			898		716		25			34
Software and software-related service revenues		2,061		1,704		21			2,113		1,704		24			32
Total revenues		2,858		2,421		18			2,910		2,421		20			28
Operating income		593		581		2			711		594		20			30
Operating margin (%)		20.7		24.0	-3.3		pp		24.4		24.5	-0.1		pp	0.5		pp
Income from continuing operations		411		453		-9			497		461		8			—
Net income		408		449		-9			494		457		8			—
Basic EPS from cont. operations (€)		0.34		0.37		-8			0.42		0.38		11			—


*		All figures are preliminary and unaudited and are based on the current status of the purchase price allocation for the Business Objects acquisition which is not yet final.

**		Revenue line items are adjusted for the Business Objects support revenue that Business Objects would have recognized had it remained a standalone entity but that SAP is not permitted to recognize as revenue under U.S. GAAP as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges. See Appendix at the end of the financial section of the press release for explanations of the Non-GAAP measures used in this press release and for related reconciliations to U.S. GAAP.

***		Constant currency Non-GAAP revenue and operating income figures are calculated by translating Non-GAAP revenue and Non-GAAP 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-GAAP constant currency numbers with the Non-GAAP number of the previous year’s respective period. See Appendix at the end of the financial section of press release for details.


*SAP Reports Strong Growth in Software and Software-Related Service Revenues*		Page 2

Revenues

•		Second quarter 2008 U.S. GAAP software and software-related service revenues were €2.06 billion (2007: €1.70 billion), representing an increase of 21% compared to the second quarter of 2007. Non-GAAP software and software-related service revenues, which exclude a non-recurring deferred support revenue write-down from the acquisition of Business Objects of €52 million, for the second quarter of 2008 were €2.11 billion (2007: €1.70 billion). This represents an increase of 24% (32% at constant currencies) compared to the second quarter of 2007. If SAP’s reporting currency was the U.S. Dollar, Non-GAAP software and software-related service revenues for the second quarter would have increased 44% compared to the same period one year ago.

•		Excluding the contribution from Business Objects, SAP’s business contributed 16 percentage points to the constant currency growth of the Non-GAAP software and software-related service revenues for the second quarter of 2008.

•		U.S. GAAP total revenues for the 2008 second quarter were €2.86 billion (2007: €2.42 billion), which was a year-over-year increase of 18%. Non-GAAP total revenues, which exclude a non-recurring deferred support revenue write-down from the acquisition of Business Objects of €52 million for the second quarter of 2008, were €2.91 billion (2007: €2.42 billion), which is an increase of 20% (28% at constant currencies) compared to the second quarter of 2007.

•		Second quarter 2008 U.S. GAAP software revenues were €898 million (2007: €716 million), representing an increase of 25% (34% at constant currencies) compared to the second quarter of 2007.

Income

•		U.S. GAAP operating income for the second quarter was €593 million (2007: €581 million), which was an increase of 2% compared to the second quarter of 2007. Second quarter Non-GAAP operating income, which excludes a non-recurring deferred support revenue write-down from the acquisition of Business Objects and acquisition-related charges totaling €118 million, was €711 million (2007: €594 million), which was an increase of 20% (30% at constant currencies) compared to the second quarter of 2007.

•		The U.S. GAAP operating margin for the second quarter of 2008 was 20.7% (2007: 24.0%). The second quarter Non-GAAP operating margin was 24.4% (2007: 24.5%), or 25.0% at constant currencies. Both the U.S. GAAP and the Non-GAAP operating margins were impacted by 1) €24 million expensed in the second quarter of 2008 for the


*SAP Reports Strong Growth in Software and Software-Related Service Revenues*		Page 3

		settlement of a litigation and, 2) one-time expenses associated with the integration of Business Objects (which are not acquisition-related charges) of approximately €11 million.

•		U.S. GAAP income from continuing operations for the second quarter of 2008 was €411 million (2007: €453 million), representing a decrease of 9% compared to the second quarter of 2007. Non-GAAP income from continuing operations, which excludes a non-recurring deferred support revenue write-down from the acquisition of Business Objects and acquisition-related charges totaling €86 million, was €497 million (2007: €461 million), representing an increase of 8% compared to the second quarter of 2007. Second quarter 2007 U.S. GAAP and Non-GAAP income from continuing operations were positively impacted by an effective tax rate of 25.5% and 25.8%, respectively, partly resulting from non-recurring tax effects.

•		U.S. GAAP earnings per share from continuing operations for the second quarter of 2008 was €0.34 (2007: €0.37), which was a decrease of 8% compared to the same period in 2007. Non-GAAP earnings per share from continuing operations for the second quarter of 2008 was €0.42 (2007: €0.38), which was an increase of 11% compared to the same period in 2007.

Core Enterprise Applications Vendor Share

SAP reported its tenth consecutive quarter of share gains. Based on U.S. GAAP second quarter 2008 software and software-related service revenues on a rolling four-quarter basis, SAP’s worldwide share of Core Enterprise Applications vendors, which account for approximately $38.1 billion in software and software-related service revenues as defined by the Company based on industry analyst research, was 33.7% for the four-quarter period ended June 30, 2008. This represents an increase of 1.1 percentage points compared to the four-quarter period ended March 31, 2008 and a 7.7 percentage point increase compared to the four quarter period ended June 30, 2007, of which approximately 4.5 percentage points came from organic growth and 3.2 percentage points from the acquisition of Business Objects.

“We performed very well in the second quarter, in which our 32% growth in Non-GAAP software and software-related service revenues at constant currencies marked our 18^thconsecutive quarter of double-digit growth,” said Henning Kagermann, co-CEO of SAP. “Our organic growth, which excludes the contribution from Business Objects, was just as impressive, contributing 16 percentage points to the constant currency growth of software and software-related service revenues. We can attribute our strong performance to good overall


*SAP Reports Strong Growth in Software and Software-Related Service Revenues*		Page 4

execution and the continued strength in all three core areas of our business, the established business, the midmarket and business user solutions.”

Mr. Kagermann continued, “SAP is unique in that we provide a truly open business process platform, with a fully integrated suite of software solutions built on top, along with a very dynamic ecosystem developing solutions around it. Our unique offering puts us on a short list of strategic solutions for CEO’s whether they are seeking efficiencies, compliance or growth for their companies.”

Cash Flow

Operating cash flow from continuing operations for the first six months of 2008 was €1.37 billion (2007: €1.02 billion). Free cash flow for the first six months of 2008 was €1.20 billion (2007: €828 million), which was 23% of total revenues (2007: 18%). At June 30, 2008, the Company had total group liquidity of €1.5 billion (December 31, 2007: €2.8 billion), which includes cash and cash equivalents, restricted cash and short term investments.

Share Buyback

In the second quarter of 2008 the Company bought back 3.8 million shares at an average price of €32.58 (€124.2 million). Of the total shares purchased in the second quarter, 265,971 shares were subsequently acquired from the Company by employees who exercised stock options under SAP’s share-based compensation programs. The number of shares bought back in the second quarter of 2008 represented 0.31% of the total shares outstanding. At June 30, 2008, the Company held Treasury Stock in the amount of 57.9 million shares (approximately 4.6% of total shares outstanding) at an average price of €35.31. For the first six months of 2008, the Company invested €382.6 million buying back approximately 11.8 million shares at an average price of €32.31.


*SAP Reports Strong Growth in Software and Software-Related Service Revenues*		Page 5

HIGHLIGHTS – Six Months 2008

Business Objects is included in the results from January 21, 2008 onwards.


	SAP – Six Months 2008*
	U.S. GAAP						Non-GAAP**
														% change
					%						%			constant
€ million	H1/2008		H1/2007		change		H1/2008		H1/2007		change			currency***

Software revenues		1,520		1,278		19		1,520		1,278		19			27
Software and software-related service revenues		3,797		3,219		18		3,896		3,219		21			28
Total revenues		5,318		4,583		16		5,417		4,583		18			25
Operating income		952		1,017		-6		1,200		1,041		15			26
Operating margin (%)		17.9		22.2	-4.3pp			22.2		22.7	-0.5		pp	0.1		pp
Income from continuing operations		658		765		-14		842		780		8			—
Net income		650		759		-14		834		774		8			—
Basic EPS from cont. operations (€)		0.55		0.63		-13		0.71		0.64		11			—


*		All figures are preliminary and unaudited and are based on the current status of the purchase price allocation for the Business Objects acquisition which is not yet final.

**		Revenue line items are adjusted for the Business Objects support revenue that Business Objects would have recognized had it remained a standalone entity but that SAP is not permitted to recognize as revenue under U.S. GAAP as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges. See Appendix at the end of the financial section of the press release for explanations of the Non-GAAP measures used in this press release and for related reconciliations to U.S. GAAP.

***		Constant currency Non-GAAP revenue and operating income figures are calculated by translating Non-GAAP revenue and Non-GAAP 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-GAAP constant currency numbers with the Non-GAAP number of the previous year’s respective period. See Appendix at the end of the financial section of press release for details.

Revenues

•

Six months 2008 U.S. GAAP software and software-related service revenues were €3.80 billion (2007: €3.22 billion), representing an increase of 18% compared to the first half of 2007. Non-GAAP software and software-related service revenues, which exclude a non-recurring deferred support revenue write-down from the acquisition of Business Objects of €99 million, for the first six months of 2008 were €3.90 billion (2007: €3.22 billion). This represents an increase of 21% (28% at constant currencies) compared to the first half of 2007. If SAP’s reporting currency was the U.S. Dollar, Non-GAAP software and software-related service revenues for the first half would have increased 40% compared to the same period one year ago.


*SAP Reports Strong Growth in Software and Software-Related Service Revenues*		Page 6

•		Excluding the contribution from Business Objects, SAP’s business contributed 14 percentage points to the constant currency growth of the Non-GAAP software and software-related service revenues for the first half of 2008.

•		U.S. GAAP total revenues for the 2008 first half were €5.32 billion (2007: €4.58 billion), which was a year-over-year increase of 16%. Non-GAAP total revenues, which exclude a non-recurring deferred support revenue write-down from the acquisition of Business Objects of €99 million for the first six months of 2008, were €5.42 billion (2007: €4.58 billion), which is an increase of 18% (25% at constant currencies) compared to the first half of 2007.

•		First Half 2008 U.S. GAAP software revenues were €1.52 billion (2007: €1.28 billion), representing an increase of 19% (27% at constant currencies) compared to the first six months of 2007.

Income

•		U.S. GAAP operating income for the 2008 six-month period was €952 million (2007: €1.02 billion), which was a decrease of 6% compared to the same period for 2007. First-half Non-GAAP operating income, which excludes a non-recurring deferred support revenue write-down from the acquisition of Business Objects and acquisition-related charges totaling €248 million, was €1.20 billion (2007: €1.04 billion), which was an increase of 15% (26% at constant currencies) compared to the first half of 2007.

•		The U.S. GAAP operating margin for the 2008 six-month period was 17.9% (2007: 22.2%). The first-half Non-GAAP operating margin was 22.2% (2007: 22.7%), or 22.8% at constant currencies. Both the U.S. GAAP and the Non-GAAP operating margins were impacted by 1) €24 million expensed in the second quarter of 2008 for the settlement of a litigation and, 2) one-time expenses associated with the integration of Business Objects (which are not acquisition-related charges) of approximately €18 million.

•		U.S. GAAP income from continuing operations for the first half of 2008 was €658 million (2007: €765 million), representing a decrease of 14% compared to the same period for 2007. Non-GAAP income from continuing operations, which excludes a non-recurring deferred support revenue write-down from the acquisition of Business Objects and acquisition-related charges totaling €184 million, was €842 million (2007: €780 million), representing an increase of 8% compared to the first half of 2007. Six-month 2007 U.S. GAAP and Non-GAAP income from continuing operations were positively impacted by a


*SAP Reports Strong Growth in Software and Software-Related Service Revenues*		Page 7

2007

second quarter effective tax rate of 25.5% and 25.8%, respectively, partly resulting from non-recurring tax effects.

•

U.S. GAAP earnings per share from continuing operations for the first half of 2008 was €0.55 (2007: €0.63), which was a decrease of 13% compared to the same period in 2007. Non-GAAP earnings per share from continuing operations for the 2008 six-month period was €0.71 (2007: €0.64), which was an increase of 11% compared to the same period in 2007.

BUSINESS OUTLOOK

The Company is providing the following outlook for the full-year 2008, which has changed from the previous outlook provided on April 30, 2008. The Company has refined the outlook for Non-GAAP software and software-related service revenues at constant currencies and Non-GAAP operating margin at constant currencies.

	•		The Company reaffirmed that it expects full-year 2008 Non-GAAP software and software-related service revenue, which excludes a non-recurring deferred support revenue write-down from the acquisition of Business Objects of approximately €180 million, to increase in a range of 24% – 27% at constant currencies (2007: €7.428 billion), but the Company now expects to reach the upper end of the range. The Company reaffirmed that SAP’s business, excluding the contribution from Business Objects, is expected to contribute 12 – 14 percentage points to this growth, but the Company now expects the contribution to reach the upper end of the range.

	•		The Company reaffirmed that it expects the full-year 2008 Non-GAAP operating margin at constant currencies, which excludes a non-recurring deferred support revenue write-down from the acquisition of Business Objects and acquisition-related charges, to be in the range of 28.5% – 29.0% (2007 non-GAAP operating margin: 27.3%), but the Company now expects to reach the upper end of the range.

	•		The Company continues to project an effective tax rate of 31.0% to 31.5% (based on U.S. GAAP income from continuing operations) for 2008.



*SAP Reports Strong Growth in Software and Software-Related Service Revenues*		Page 8

KEY EVENTS – Second Quarter 2008

	•		In the second quarter of 2008, SAP closed major contracts in several key regions including Carlsberg Breweries A/S, Comet Group Plc, Fiat Services S.p.A., GDF SUEZ, Saudi Electricity Company (SEC) in EMEA; AmerisourceBergen Corporation, Brown Shoe Company, Freeman, Marisa Lojas Varejistas Ltda, The City of Edmonton in Americas; and China Petroleum & Chemical, KPIT Cummins Infosystems Ltd, Neptune Orient Lines Ltd, India Oil and Natural Gas Corporation, Shanxi Electric I/E Power Corp., SUMISHO COMPUTER SYSTEMS in the Asia Pacific Japan region.

	•		On June 17, 2008, SAP announced its intent to acquire Visiprise, Inc. With the addition of Visiprise, SAP will deliver on its “Perfect Plant” strategy to bring together core SAP solutions with the software, hardware and services offerings of ecosystem partners to drive innovation for discrete manufacturers.

	•		On May 20, 2008, SAP announced Unilever’s implementation of SAP NetWeaver Master Data Management (SAP NetWeaver MDM) component to support five countries in the Asia/AMET (Africa, Middle-East and Turkey) region. Unilever requires a unified view of master data to remain agile and quickly address changing business needs while maintaining strong local market performance.

	•		On May 19, 2008, SAP announced that it will support Daimler AG as a global IT solution provider in order to drive Daimler’s comprehensive IT harmonization strategy.

	•		On May 19, 2008, SAP announced that Bayer MaterialScience selected the latest version of the SAP Customer Relationship Management (SAP CRM) application, SAP CRM 2007, to help enable its global sales force to deliver superior value to its customers.

	•		On May 19, 2008, SAP announced new CRM functionality in the SAP Business All-in-One solution. CRM functionality in SAP Business All-in-One will considerably enhance SAP’s midsize customers’ ability to pursue new customer strategies and manage entire end-to-end business processes with preconfigured best practices.

	•		SAP’s international customer conference SAPPHIRE 2008, held in Orlando, Florida, May 4-7 and Berlin, Germany May 19 – 21 focused on “Business Beyond Boundaries.” During SAPPHIRE 2008, customers from throughout the world showed how they utilize and benefit from SAP solutions to build “business beyond boundaries.”

	•		On May 5, 2008, SAP and Satyam Computer Services Ltd. announced a new partnership to help businesses accelerate co-innovation and improve their return on investment. Under a new agreement, Satyam has become an SAP global services partner to help companies worldwide to reliably and rapidly implement SAP solutions and transform business processes.

	•		On May 5, 2008, SAP announced that it would further extend its partnership with IBM for SAP Business All-in-One solutions.



*SAP Reports Strong Growth in Software and Software-Related Service Revenues*		Page 9

	•		On May 5, 2008, SAP announced that Infosys signed up to the SAP Global Service Partner Program. This announcement marked an important milestone in the relationship between the two organizations, which have been working together for more than five years to help companies realize information technology (IT) and business results from their investments in SAP applications.

	•		On May 2, 2008, SAP and Research In Motion (RIM) announced a co-innovation partnership to usher in a new era in enterprise mobility. Both companies have joined forces to change the way people work, by enabling anytime, anywhere mobile access to SAP enterprise applications through the widely adopted BlackBerry® platform.

	•		On April 2, 2008, SAP announced the appointment of SAP Deputy CEO Léo Apotheker as the company’s co-CEO alongside SAP CEO Henning Kagermann. The supervisory board also appointed to the SAP Executive Board three new members, effective July 1, 2008: Corporate Officers Erwin Gunst, Bill McDermott and Jim Hagemann Snabe.

Use of Non-GAAP Financial Measures

This press release contains certain financial measures such as Non-GAAP revenues, Non-GAAP operating income, Non-GAAP operating margin, free cash flow, constant currency revenue and operating income measures, as well as U.S. Dollar based Non-GAAP revenue numbers. These measures are not prepared in accordance with U.S. GAAP and therefore are considered non-GAAP financial measures. Our non-GAAP financial measures may not correspond to non-GAAP financial measures that other companies report. The non-GAAP financial measures that we report should be considered as additional to, and not as a substitute for or superior to revenue, operating margin or our other measures of financial performance prepared in accordance with U.S. GAAP. See the Appendix at the end of the financial section of this press release for additional information regarding the Non-GAAP measures included in this press release and for the reconciliations to the corresponding U.S. GAAP measures.

Core Enterprise Applications Vendor Share

The Company provides share data based on the vendors of Core Enterprise Applications solutions, which account for approximately $38.1 billion in software and software-related service revenues as defined by the Company based on industry analyst research. For 2008, industry analysts project approximately 7% year-on-year growth for Core Enterprise Applications vendors. For its quarterly share calculation, SAP assumes that this approximate 7% growth will not be linear throughout the year. Instead, quarterly adjustments are made based on the financial performance of a sub set of (approximately 25) Core Enterprise Application vendors.



*SAP Reports Strong Growth in Software and Software-Related Service Revenues*		Page 10

Webcast/Supplementary Financial Information

SAP senior management will host a conference call today at 3:00 pm (CEDT) / 2:00 pm (GMT) / 9:00 am (EDT) / 6:00 am (PDT). The conference call will be Webcast live on the Company’s Web site at <http://www.sap.com/investor> and will be available for replay purposes as well. Supplementary financial information pertaining to the quarterly results can be found at http://www.sap.com/investor.

About SAP

SAP is the world’s leading provider of business software, offering applications and services that enable companies of all sizes and in more than 25 industries to become best-run businesses. With around 75,000 customers in over 120 countries, SAP is listed on several exchanges, including the Frankfurt stock exchange and NYSE, under the symbol “SAP.” (For more information, visit www.sap.com)

(*) SAP defines business software as comprising enterprise resource planning and related applications.

# # #

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,” “outlook,” “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.

SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver 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 in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serve informational purposes only. National product specifications may vary.

For more information, press only:

Herbert Heitmann, +49 (6227) 7-61137, herbert.heitmann@sap.com, CET
Christoph Liedtke, +49 6227 7-50383, christoph.liedtke@sap.com, CET
Andy Kendzie +1 (202) 312-3919, andy.kendzie@sap.com, EST

For more information, financial community only:

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

Appendix — Financial Information to Follow

CONSOLIDATED INCOME STATEMENT
(U.S. GAAP, Non-GAAP* and Non-GAAP at Constant Currency**)
Preliminary and unaudited


	Three months ended June 30,
	2008													2007								% change
											Non-GAAP																	Non-GAAP
									Currency		constant																	constant
€ millions, unless otherwise stated	U.S. GAAP			Adj.*		Non-GAAP*			impact**		currency**			U.S. GAAP			Adj.*		Non-GAAP*			U.S. GAAP			Non-GAAP*			currency**

Software revenue		898			0		898			63		961			716			0		716			25			25			34
Support revenue		1,099			52		1,151			69		1,220			944			0		944			16			22			29
Subscription and other software-related service revenue		64			0		64			2		66			44			0		44			45			45			50
Software and software-related service revenue		2,061			52		2,113			134		2,247			1,704			0		1,704			21			24			32
Consulting revenue		628			0		628			39		667			556			0		556			13			13			20
Training revenue		114			0		114			7		121			104			0		104			10			10			16
Other service revenue		26			0		26			2		28			28			0		28			-7			-7			0
Professional services and other service revenue		768			0		768			48		816			688			0		688			12			12			19
Other revenue		29			0		29			2		31			29			0		29			0			0			7

Total revenue		2,858			52		2,910			184		3,094			2,421			0		2,421			18			20			28


Cost of software and software-related services		-418			45		-373								-305			11		-294			37			27
Cost of professional services and other services		-581			0		-581								-524			0		-524			11			11
Research and development		-421			1		-420								-353			1		-352			19			19
Sales and marketing		-681			20		-661								-535			1		-534			27			24
General and administration		-169			0		-169								-127			0		-127			33			33
Other operating income/expense, net		5			0		5								4			0		4			25			25

Total operating expenses		-2,265			66		-2,199			-121		-2,320			-1,840			13		-1,827			23			20			27



Operating income		593			118		711			63		774			581			13		594			2			20			30


Other non-operating income/expense, net		19			0		19								-4			0		-4			-575			-575
Financial income/expense, net		-13			0		-13								34			0		34			-138			-138

Income from continuing operations before income taxes		599			118		717								611			13		624			-2			15


Income taxes		-188			-32		-220								-156			-5		-161			21			37
Minority interests		0			0		0								-2			0		-2			N/A			N/A

Income from continuing operations		411			86		497								453			8		461			-9			8

Loss from discontinued operations, net of tax		-3			0		-3								-4			0		-4			-25			-25


Net income		408			86		494								449			8		457			-9			8


Earnings per Share (EPS)
EPS from continuing operations – basic in €		0.34					0.42								0.37					0.38			-8			11
EPS from continuing operations – diluted in €		0.34					0.42								0.37					0.38			-8			11
EPS from net income – basic in €		0.34					0.41								0.37					0.38			-8			8
EPS from net income – diluted in €		0.34					0.41								0.37					0.38			-8			8

Weighted average number of shares***		1,191					1,191								1,208					1,208


Key Ratios
Operating margin		20.7	%				24.4	%				25.0	%		24.0	%				24.5	%	-3.3		pp	-0.1		pp	-0.5		pp
Effective tax rate from continuing operations		31.4	%				30.7	%							25.5	%				25.8	%


*		adjustments in the revenue line items are for the Business Objects support revenue that Business Objects would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under U.S. GAAP as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges. See Appendix for details

**		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-GAAP constant currency numbers with the Non-GAAP number of the previous year’s respective period. See Appendix for details

***		in millions, treasury stock excluded

CONSOLIDATED INCOME STATEMENT
(U.S. GAAP, Non-GAAP* and Non-GAAP at Constant Currency**)
Preliminary and unaudited


	Six months ended June 30,
	2008													2007								% change
											Non-GAAP																	Non-GAAP
									Currency		constant																	currency**
€ millions, unless otherwise stated	U.S. GAAP			Adj.*		Non-GAAP*			impact**		currency**			U.S. GAAP			Adj.*		Non-GAAP*			U.S. GAAP			Non-GAAP*			constant

Software revenue		1,520			0		1,520			106		1,626			1,278			0		1,278			19			19			27
Support revenue		2,157			99		2,256			123		2,379			1,858			0		1,858			16			21			28
Subscription and other software-related service revenue		120			0		120			3		123			83			0		83			45			45			48
Software and software-related service revenue		3,797			99		3,896			232		4,128			3,219			0		3,219			18			21			28
Consulting revenue		1,215			0		1,215			71		1,286			1,074			0		1,074			13			13			20
Training revenue		218			0		218			13		231			198			0		198			10			10			17
Other service revenue		51			0		51			4		55			56			0		56			-9			-9			-2
Professional services and other service revenue		1,484			0		1,484			88		1,572			1,328			0		1,328			12			12			18
Other revenue		37			0		37			2		39			36			0		36			3			3			8

Total revenue		5,318			99		5,417			322		5,739			4,583			0		4,583			16			18			25


Cost of software and software-related services		-785			93		-692								-592			21		-571			33			21
Cost of professional services and other services		-1,148			0		-1,148								-1,029			0		-1,029			12			12
Research and development		-838			15		-823								-692			1		-691			21			19
Sales and marketing		-1,278			41		-1,237								-1,013			2		-1,011			26			22
General and administration		-321			0		-321								-246			0		-246			30			30
Other operating income/expense, net		4			0		4								6			0		6			-33			-33

Total operating expenses		-4,366			149		-4,217			-213		-4,430			-3,566			24		-3,542			22			19			25



Operating income		952			248		1,200			109		1,309			1,017			24		1,041			-6			15			26


Other non-operating income/expense, net		18			0		18								-7			0		-7			-357			-357
Financial income/expense, net		-15			0		-15								70			0		70			-121			-121

Income from continuing operations before income taxes		955			248		1,203								1,080			24		1,104			-12			9


Income taxes		-297			-64		-361								-313			-9		-322			-5			12
Minority interests		0			0		0								-2			0		-2			N/A			N/A

Income from continuing operations		658			184		842								765			15		780			-14			8

Loss from discontinued operations, net of tax		-8			0		-8								-6			0		-6			33			33


Net income		650			184		834								759			15		774			-14			8


Earnings per Share (EPS)
EPS from continuing operations – basic in €		0.55					0.71								0.63					0.64			-13			11
EPS from continuing operations – diluted in €		0.55					0.71								0.63					0.64			-13			11
EPS from net income – basic in €		0.54					0.70								0.63					0.64			-14			9
EPS from net income – diluted in €		0.54					0.70								0.63					0.64			-14			9

Weighted average number of shares***		1,194					1,194								1,211					1,211


Key Ratios
Operating margin		17.9	%				22.2	%				22.8	%		22.2	%				22.7	%	-4.3		pp	-0.5		pp	-0.1		pp
Effective tax rate from continuing operations		31.1	%				30.0	%							29.0	%				29.2	%


*		adjustments in the revenue line items are for the Business Objects support revenue that Business Objects would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under U.S. GAAP as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges. See Appendix for details

**		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-GAAP constant currency numbers with the Non-GAAP number of the previous year’s respective period. See Appendix for details

***		in millions, treasury stock excluded

Revenue in U.S. Dollar
Preliminary and unaudited


	Three months ended June 30,
	Software							Software and
	Revenue							Software-Related Service Revenue
	2008		2007		% change			2008		2007		% change

U.S. GAAP Revenue in Euro	€	898	€	716		25	%	€	2,061	€	1,704		21	%
Respective Measure in U.S. Dollar	$	1,397	$	961		45	%	$	3,214	$	2,293		40	%
Adjustment*		0		0		—		$	81		0		—
U.S. Dollar Non-GAAP Revenue	$	1,397	$	961		45	%	$	3,295	$	2,293		44	%


*		adjustments in the revenue line items are for the Business Objects support revenue that Business Objects would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under U.S. GAAP as a result of business combination rules.


	Six months ended June 30,
	Software							Software and
	Revenue							Software-Related Service Revenue
	2008		2007		% change			2008		2007		% change

U.S. GAAP Revenue in Euro	€	1,520	€	1,278		19	%	€	3,797	€	3,219		18	%
Respective Measure in U.S. Dollar	$	2,355	$	1,704		38	%	$	5,844	$	4,286		36	%
Adjustment*		0		0		—		$	154		0		—
U.S. Dollar Non-GAAP Revenue	$	2,355	$	1,704		38	%	$	5,998	$	4,286		40	%


*		adjustments in the revenue line items are for the Business Objects support revenue that Business Objects would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under U.S. GAAP as a result of business combination rules.

CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. GAAP)
Preliminary and unaudited


€ millions	June 30, 2008		December 31, 2007

Assets

Cash and cash equivalents		1,411		1,608
Restricted cash		3		550
Short-term investments		99		598
Accounts receivable, net		2,874		2,895
Other assets		513		541
Deferred income taxes		148		125
Prepaid expenses/deferred charges		143		76
Assets classified as held for disposal		15		15
Current assets		5,206		6,408

Goodwill		4,911		1,423
Intangible assets, net		1,200		403
Property, plant, and equipment, net		1,359		1,316
Investments		101		89
Accounts receivable, net		2		3
Other assets		646		555
Deferred income taxes		160		146
Prepaid expenses/deferred charges		26		23
Noncurrent assets		8,405		3,958


Total assets		13,611		10,366


€ millions	June 30, 2008		December 31, 2007

Liabilities, Minority interests and Shareholders’ equity

Accounts payable		654		715
Income tax obligations		377		341
Other liabilities		1,287		1,456
Provisions		203		154
Deferred income taxes		53		47
Deferred income		1,396		477
Liabilities associated with assets classified as held for disposal		11		9
Current liabilities		3,981		3,199
Accounts payable		5		10
Income tax obligations		98		90
Other liabilities		2,691		79
Provisions		429		369
Deferred income taxes		176		73
Deferred income		37		42
Noncurrent liabilities		3,436		663
Total liabilities		7,417		3,862

Minority interests		2		1

Common stock, no par value		1,246		1,246
Treasury stock		-2,044		-1,734
Additional paid-in capital		342		347
Retained earnings		7,214		7,159
Accumulated other comprehensive loss		-566		-515
Shareholders’ equity		6,192		6,503


Total liabilities, Minority interests and Shareholders’ equity		13,611		10,366


Days Sales Outstanding		68		66

CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. GAAP)
Preliminary and unaudited


	Six months ended June 30,
€ millions	2008		2007

Net income		650		759
Net loss from discontinued operations		8		6
Minority interests		0		2
Income from continuing operations before minority interests		658		767

Adjustments to reconcile income from continuing operations before minority interests to net cash provided by operating activities:
Depreciation and amortization		271		120
Losses from equity investees		1		1
Losses on disposal of intangible assets and property, plant, and equipment		1		0
Gains on disposal of investments		-9		-2
Writeups/downs of financial assets		0		0
Allowances for doubtful accounts		35		0
Impacts of hedging for cash-settled share-based payment plans		12		13
Stock-based compensation including income tax benefits		14		10
Excess tax benefit from share-based compensation		-8		0
Deferred income taxes		-44		1
Change in accounts receivable		225		153
Change in other assets		-65		-309
Change in accrued and other liabilities		-626		-484
Change in deferred income		906		754

Net cash provided by operating activities from continuing operations		1,371		1,024


Acquisition of minority interests in subsidiaries		0		-48
Business combinations, net of cash and cash equivalents acquired		-3,689		-345
Repayment of acquirees’ debt in business combinations		-450		0
Purchase of intangible assets and property, plant, and equipment		-171		-196
Proceeds from disposal of intangible assets and property, plant, and equipment		20		12
Cash transferred to restricted cash		-451		0
Reduction of restricted cash		1,000		0
Purchase of investments		-14		-512
Sales of investments		504		538
Purchase of other financial assets		-7		-7
Sales of other financial assets		7		7

Net cash used in investing activities from continuing operations		-3,251		-551


Dividends paid		-594		-556
Purchase of treasury stock		-383		-506
Proceeds from reissuance of treasury stock		45		42
Proceeds from issuance of common stock (share-based compensation)		8		13
Excess tax benefit from share-based compensation		8		0
Proceeds from short-term and long-term debt		3,859		18
Repayments of short-term and long-term debt		-1,260		-13
Proceeds from the exercise of equity-based derivative instruments (STAR hedge)		66		75
Purchase of equity-based derivative instruments (hedge for cash-settled share-based payment plans)		-55		0

Net cash used in financing activities from continuing operations		1,694		-927



Effect of foreign exchange rates on cash and cash equivalents		-3		-7


Net cash used in operating activities from discontinued operations		-8		-8
Net cash used in investing activities from discontinued operations		0		0
Net cash used in financing activities from discontinued operations		0		0

Net cash used in discontinued operations		-8		-8


Net change in cash and cash equivalents		-197		-469

Cash and cash equivalents at the beginning of the period		1,608		2,399

Cash and cash equivalents at the end of the period		1,411		1,930

REVENUE BY REGION
(U.S. GAAP, Non-GAAP* and Non-GAAP at Constant Currency**)
Preliminary and unaudited


	Three months ended June 30,
	2008										2007						% change
									Non-GAAP												Non-GAAP
							Currency		constant												constant
€ millions	U.S. GAAP		Adj.*		Non-GAAP*		impact**		currency**		U.S. GAAP		Adj.*		Non-GAAP*		U.S. GAAP		Non-GAAP*		currency**

Software revenue by region***
EMEA		444		0		444		14		458		350		0		350		27		27		31
Americas		306		0		306		38		344		259		0		259		18		18		33
Asia Pacific Japan		148		0		148		11		159		107		0		107		38		38		49

Total		898		0		898		63		961		716		0		716		25		25		34


Software and software-related service revenue by region***
Germany		353		2		355		0		355		319		0		319		11		11		11
Rest of EMEA		758		20		778		29		807		597		0		597		27		30		35
Total EMEA		1,111		22		1,133		29		1,162		916		0		916		21		24		27
United States		472		24		496		79		575		415		0		415		14		20		39
Rest of Americas		190		2		192		8		200		152		0		152		25		26		32
Total Americas		662		26		688		87		775		567		0		567		17		21		37
Japan		89		1		90		0		90		82		0		82		9		10		10
Rest of Asia Pacific Japan		199		3		202		18		220		139		0		139		43		45		58
Total Asia Pacific Japan		288		4		292		18		310		221		0		221		30		32		40

Total		2,061		52		2,113		134		2,247		1,704		0		1,704		21		24		32


Total revenue by region***
Germany		524		2		526		0		526		454		0		454		15		16		16
Rest of EMEA		1,009		20		1,029		36		1,065		812		0		812		24		27		31
Total EMEA		1,533		22		1,555		36		1,591		1,266		0		1,266		21		23		26
United States		703		24		727		116		843		643		0		643		9		13		31
Rest of Americas		249		2		251		10		261		208		0		208		20		21		25
Total Americas		952		26		978		126		1,104		851		0		851		12		15		30
Japan		115		1		116		0		116		111		0		111		4		5		5
Rest of Asia Pacific Japan		258		3		261		22		283		193		0		193		34		35		47
Total Asia Pacific Japan		373		4		377		22		399		304		0		304		23		24		31

Total		2,858		52		2,910		184		3,094		2,421		0		2,421		18		20		28


*		adjustments in the revenue line items are for the Business Objects support revenue that Business Objects would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under U.S. GAAP as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges. See Appendix for details

**		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-GAAP constant currency numbers with the Non-GAAP number of the previous year’s respective period

***		based on customer location

REVENUE BY REGION
(U.S. GAAP, Non-GAAP* and Non-GAAP at Constant Currency**)
Preliminary and unaudited


	Six months ended June 30,
	2008										2007						% change
									Non-GAAP												Non-GAAP
							Currency		constant												constant
€ millions	U.S. GAAP		Adj.*		Non-GAAP*		impact**		currency**		U.S. GAAP		Adj.*		Non-GAAP*		U.S. GAAP		Non-GAAP*		currency**

Software revenue by region***
EMEA		736		0		736		24		760		587		0		587		25		25		29
Americas		523		0		523		65		588		507		0		507		3		3		16
Asia Pacific Japan		261		0		261		17		278		184		0		184		42		42		51

Total		1,520		0		1,520		106		1,626		1,278		0		1,278		19		19		27


Software and software-related service revenue by region***
Germany		655		3		658		0		658		590		0		590		11		12		12
Rest of EMEA		1,374		37		1,411		50		1,461		1,077		0		1,077		28		31		36
Total EMEA		2,029		40		2,069		50		2,119		1,667		0		1,667		22		24		27
United States		885		48		933		144		1,077		834		0		834		6		12		29
Rest of Americas		340		4		344		10		354		300		0		300		13		15		18
Total Americas		1,225		52		1,277		154		1,431		1,134		0		1,134		8		13		26
Japan		175		2		177		1		178		144		0		144		22		23		24
Rest of Asia Pacific Japan		368		5		373		27		400		274		0		274		34		36		46
Total Asia Pacific Japan		543		7		550		28		578		418		0		418		30		32		38

Total		3,797		99		3,896		232		4,128		3,219		0		3,219		18		21		28


Total revenue by region***
Germany		977		3		980		0		980		862		0		862		13		14		14
Rest of EMEA		1,846		37		1,883		63		1,946		1,485		0		1,485		24		27		31
Total EMEA		2,823		40		2,863		63		2,926		2,347		0		2,347		20		22		25
United States		1,338		48		1,386		213		1,599		1,262		0		1,262		6		10		27
Rest of Americas		451		4		455		12		467		404		0		404		12		13		16
Total Americas		1,789		52		1,841		225		2,066		1,666		0		1,666		7		11		24
Japan		227		2		229		1		230		199		0		199		14		15		16
Rest of Asia Pacific Japan		479		5		484		33		517		371		0		371		29		30		39
Total Asia Pacific Japan		706		7		713		34		747		570		0		570		24		25		31

Total		5,318		99		5,417		322		5,739		4,583		0		4,583		16		18		25


*		adjustments in the revenue line items are for the Business Objects support revenue that Business Objects would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under U.S. GAAP as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges. See Appendix for details

**		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-GAAP constant currency numbers with the Non-GAAP number of the previous year’s respective period

***		based on customer location

SHARE-BASED COMPENSATION
(U.S. GAAP and Non-GAAP)
Preliminary and unaudited


	Six months ended June 30,
€ millions	2008		2007		% change

Share-based compensation per expense line item (both U.S. GAAP and Non-GAAP):
Cost of software and software-related services		4		4		0	%
Cost of professional services and other services		10		11		-9	%
Research and development		15		15		0	%
Sales and marketing		15		9		67	%
General and administration		8		10		-20	%
Other operating income/expense, net		0		0		0	%

Total Share-Based Compensation		52		49		6	%

FREE CASH FLOW
Preliminary and unaudited


	Six months ended June 30,
€ millions	2008		2007		% change

Net cash provided by operating activities from continuing operations		1,371		1,024		34	%
Purchase of long-lived assets excluding additions from business combinations		-171		-196		-13	%

Free Cash Flow		1,200		828		45	%

HEADCOUNT
Preliminary and unaudited


in Full-Time-Equivalents - from continuing operations	June 30, 2008		December 31, 2007		June 30, 2007

*Headcount by Region*
Germany		15,303		14,749		14,395
Rest of EMEA		11,235		8,905		8,641
Total EMEA		26,538		23,654		23,036
United States		9,293		7,832		7,594
Rest of Americas		4,491		2,797		2,547
Total Americas		13,784		10,629		10,141
Japan		1,477		1,344		1,267
Rest of Asia Pacific Japan		9,648		8,234		7,292
Total Asia Pacific Japan		11,125		9,578		8,559

Total		51,447		43,861		41,736


*Headcount by Functional Area*
Software and software related services		6,517		5,831		5,494
Professional services and other services		14,057		12,785		12,268
Research and development		15,148		12,951		12,330
Sales and marketing		10,794		8,282		7,865
General and administration		3,367		2,797		2,635
Infrastructure		1,564		1,215		1,144

Total		51,447		43,861		41,736

MULTI QUARTER SUMMARY
(U.S. GAAP and Non-GAAP)
Preliminary and unaudited

€ millions, unless stated otherwise

Q2/2008

Q1/2008

Q4/2007

Q3/2007

Q2/2007

Q1/2007

Software revenue (U.S. GAAP)

898

622

1,415

714

716

562

Revenue adjustment*

Software revenue (Non-GAAP)

898

622

1,415

714

716

562

Support revenue (U.S. GAAP)

1,099

1,058

1,005

975

944

914

Revenue adjustment*

Support revenue (Non-GAAP)

1,151

1,105

1,005

975

944

914

Subscription and other software-related service revenue (U.S. GAAP)

Revenue adjustment*

Subscription and other software-related service revenue (Non-GAAP)

Software and software-related service revenue (U.S. GAAP)

2,061

1,736

2,473

1,735

1,704

1,515

Revenue adjustment*

Software and software-related service revenue (Non-GAAP)

2,113

1,783

2,473

1,735

1,704

1,515

Total revenue (U.S. GAAP)

2,858

2,460

3,240

2,419

2,421

2,162

Revenue adjustment*

Total revenue (Non-GAAP)

2,910

2,507

3,240

2,419

2,421

2,162

Operating income (U.S. GAAP)

593

359

1,109

606

581

436

Revenue adjustment*

Expense adjustment*

Operating income (Non-GAAP)

711

489

1,128

624

594

447

Operating margin (U.S. GAAP)

20.7

14.6

34.2

25.1

24.0

20.2

Operating margin (Non-GAAP)

24.4

19.5

34.8

25.8

24.5

20.7

Effective tax rate from continuing operations (Non-GAAP)

30.7

29.0

33.8

35.1

25.8

33.5

EPS from continuing operations — basic in €(U.S. GAAP)

0.34

0.21

0.63

0.34

0.37

0.26

EPS from continuing operations — diluted in €(U.S. GAAP)

0.34

0.21

0.63

0.34

0.37

0.26

EPS from continuing operations — basic in €(Non-GAAP)

0.42

0.29

0.64

0.35

0.38

0.26

EPS from continuing operations — diluted in €(Non-GAAP)

0.42

0.29

0.64

0.35

0.38

0.26

Headcount**

51,447

51,274

43,861

42,601

41,736

40,318


*		adjustments in the revenue line items are for the Business Objects support revenue that Business Objects would have recognized had it remained a stand-alone entity but that SAP is not permitted to recognize as revenue under U.S. GAAP as a result of business combination accounting rules. Adjustments in the operating expense line items are for acquisition-related charges. See Appendix for details

**		in Full-Time-Equivalents — from continuing operations

APPENDIX
Explanation of Non-GAAP Measures

This document discloses certain financial measures, such as Non-GAAP revenues, Non-GAAP operating income, Non-GAAP operating margin, free cash flow, a constant currency revenue and operating income measures as well as U.S. Dollar based revenue numbers, that are not prepared in accordance with U.S. GAAP and are therefore considered non-GAAP financial measures. Our non-GAAP financial measures may not correspond to non-GAAP financial measures that other companies report. The non-GAAP financial measures that we report should be considered as additional to, and not as substitutes for or superior to, revenue, operating income, cash flows, or other measures of financial performance prepared in accordance with U.S. GAAP. Our non-GAAP financial measures included in this press release are reconciled to the nearest U.S. GAAP measure in the tables on the pages F1 to F9 above.

Non-GAAP Revenues, Non-GAAP Operating Income and Non-GAAP Operating Margin

We believe that it is of interest to investors to receive certain supplemental historical and prospective financial information used by our management in running our business – in addition to financial data prepared in accordance with U.S. GAAP. Beginning in 2008 we use both Non-GAAP revenues and Non-GAAP operating income / Non-GAAP operating margin as defined below consistently in our planning, forecasting, reporting, compensation and external communication.

Non-GAAP revenue: Revenues in this document identified as “Non-GAAP revenue” have been adjusted from the respective U.S. GAAP numbers by including the full amount of Business Objects support revenues that would have been reflected by Business Objects had it remained a stand-alone entity but are not permitted to be reflected as revenues under U.S. GAAP as a result of fair value accounting for Business Objects support contracts in effect at the time of the Business Objects acquisition.

Under U.S. GAAP we record at fair value the Business Objects support contracts in effect at the time of the acquisition of Business Objects. Consequently, our U.S. GAAP support revenues, our U.S. GAAP software and software-related service revenues and our U.S. GAAP total revenues for periods subsequent to the Business Objects acquisition do not reflect the full amount of support revenue that Business Objects would have recorded for these support contracts absent the acquisition by SAP. Adjusting revenue numbers for this one-time revenue impact provides additional insight into our ongoing performance because the support contracts are typically one-year contracts and renewals of these contracts are expected to result in revenues that are not impacted by the business combination-related fair value accounting.

We believe that our Non-GAAP revenue numbers have limitations, particularly as the eliminated amounts may be material to us. We therefore do not evaluate our growth and performance without considering both Non-GAAP revenues and U.S. GAAP revenues. We caution the readers of this document to follow a similar approach by considering our Non-GAAP revenues only in addition to, and not as a substitute for or superior to, revenues or other measures of our financial performance prepared in accordance with U.S. GAAP.

Non-GAAP operating income / Non-GAAP operating margin: Operating income and operating margin in this document identified as “Non-GAAP operating income” or “Non-GAAP operating margin” have been adjusted from the respective operating income and operating margin numbers as recorded under U.S. GAAP by including the full amount of Business Objects support revenues to be included in Non-GAAP revenue, and by excluding acquisition-related charges. Acquisition related charges in this context comprise:

.		Amortization expense of intangibles acquired in business combination and standalone acquisitions of intellectual property

.		Expense from purchased in-process research and development

.		Restructuring expenses as far as incurred in connection with a business combinations and accounted for under SFAS 146 in SAP’s U.S. GAAP financial statements

Although acquisition-related charges include recurring items from past acquisitions, such as amortization of acquired intangible assets, they also include an unknown component, relating to current-year acquisitions. We cannot accurately assess or plan for that unknown component until we have finalized our purchase price allocation. Furthermore acquisition-related charges may include one-time charges that are not reflective of our ongoing operating performance.

F10

We believe that our Non-GAAP financial measures described above have limitations, particularly as the eliminated amounts may be material to us. We therefore do not evaluate our growth and performance without considering both Non-GAAP operating income / Non-GAAP operating margin numbers and U.S. GAAP operating income and margin numbers. We caution the readers of this document to follow a similar approach by considering our Non-GAAP operating income / Non-GAAP operating margin numbers only in addition to, and not as a substitute for or superior to, revenues or other measures of our financial performance prepared in accordance with U.S. GAAP.

Free Cash Flow

We believe that free cash flow is a widely accepted supplemental measure of liquidity. Free cash flow measures a company’s cash flow remaining after all expenditures required to maintain or expand the business have been paid off. We calculate free cash flow as operating cash flow from continuing operations minus additions to long-lived assets excluding additions from acquisitions. Free cash flow should be considered in addition to, and not as a substitute for or superior to, cash flow or other measures of liquidity and financial performance prepared in accordance with U.S. GAAP.

Constant Currency Period-over-Period Changes

We believe it is important for investors to have information that provides insight into our sales. Revenue measures determined under U.S. GAAP provide information that is useful in this regard. However, both sales volume and currency effects impact period-over-period changes in sales revenue. We do not sell standardized units of products and services, so we cannot provide relevant information on sales volume by providing data on the changes in product and service units sold. To provide additional information that may be useful to investors in breaking down and evaluating changes in sales volume, we present information about our revenue and various values and components relating to operating income that are adjusted for foreign currency effects. We calculate constant currency year-over-year changes in revenue and operating income by translating foreign currencies using the average exchange rates from the previous (comparator) year instead of the report year.

We believe that data on constant currency period-over-period changes have limitations, particularly as the currency effects that are eliminated constitute a significant element of our revenues and expenses and may severely impact our performance. We therefore limit our use of constant currency period-over-period changes to the analysis of changes in volume as one element of the full change in a financial measure. We do not evaluate our results and performance without considering both constant currency period-over-period changes on the one hand and changes in revenues, expenses, income, or other measures of financial performance prepared in accordance with U.S. GAAP on the other. We caution the readers of this document to follow a similar approach by considering data on constant currency period-over-period changes only in addition to, and not as a substitute for or superior to, changes in revenues, expenses, income, or other measures of financial performance prepared in accordance with U.S. GAAP.

U.S. Dollar-based Non-GAAP Revenue Measures

Substantially all of our major competitors report their financial performance in U.S. Dollars. Thus changes in exchange rates, particularly in the U.S. Dollar to Euro rates, affect the financial statements of our competitors differently than our Euro-based financial statements. We therefore believe that U.S. Dollar-based revenue numbers for SAP provide investors with useful additional information that enables them to better compare SAP’s revenue growth with SAP’s competitors’ revenue growth irrespective of movements in exchange rates.

Our U.S. Dollar Non-GAAP Revenue numbers are determined as if SAP’s reporting currency was the U.S. Dollar. In fact, the reporting currency of our U.S. GAAP and IFRS consolidated financial statements as filed in Germany and in the U.S. with the U.S. Securities and Exchange Commission (SEC) is the Euro. Additionally, our U.S. Dollar Non-GAAP Revenue numbers have been adjusted from the respective U.S. GAAP revenue numbers by the same support revenue fair value adjustment than our Non GAAP Revenue numbers explained above.

SAP’s management uses our U.S. Dollar Non-GAAP Revenue numbers to gain a better understanding of SAP’s operating results compared to SAP’s major competitors.

We believe that our U.S. Dollar Non-GAAP Revenue numbers have limitations, particularly because the impact of currency exchange rate fluctuations and the eliminated amounts may be material to us. We therefore do not evaluate our growth and performance without considering both Non-GAAP revenues and Euro-based U.S. GAAP revenues. We caution the readers of this document to follow a similar approach by considering our U.S. Dollar Non-GAAP Revenue numbers only in addition to, and not as a substitute for or superior to, revenues or other measures of our financial performance prepared in accordance with U.S. GAAP and reported in Euro.

F11


	page
Financial Statements
Statements of Income	F1 and F2
Revenue in U.S. Dollar		F3
Balance Sheets		F4
Statements of Cash Flow		F5

Supplementary Financial Information
Revenue by Region	F6 and F7
Share-based Compensation		F8
Free Cash Flow		F8
Headcount		F8
Multi Quarter Overview		F9

Appendix
Explanation of Non-GAAP Measures		F10