SAP Capital Markets Day...including update on SAP S/4HANA Cloud by Franck Cohen, President Cloud ERP and demo by Franz Faerber, EVP Products & Innovation Big Data 02:20 ± 02:40 pm

SAP Capital Markets Day

March 6, 2018

2© 2018 SAP SE or an SAP affiliate company. All rights reserved.

Agenda01:00 – 01:05 pm Welcome

Stefan Gruber, Head of Investor Relations

01:05 – 01:35 pm Strategy and Vision: Opportunity in Time of Disruption Bill McDermott, CEO Moderated by Nick Tzitzon, EVP Marketing and Communications

01:35 – 02:20 pm Delivering the Intelligent Enterprise Bernd Leukert, Executive Board Member including update on SAP S/4HANA Cloud by Franck Cohen, President Cloud ERP and demo by Franz Faerber, EVP Products & Innovation Big Data

02:20 – 02:40 pm Break

02:40 – 03:15 pm Customer Perspective Hosted by Jennifer Morgan, Executive Board Member Mike Heim, CIO, Whirlpool Jeff Mueller, CIO, Pregis Todd Thompson, CIO, doTERRA

03:15 – 03:45 pm Highly Attractive Business Model – Growing Predictability and Profitability Luka Mucic, CFO

03:45 – 04:30 pm Q&A Bill McDermott, Christian Klein, Bernd Leukert, Jennifer Morgan, Luka Mucic

04:30 – 05:30 pm Reception with SAP Executives


Cautionary Statement Regarding Forward-Looking Statements

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 or Callidus Software Inc. (the

“Company”) are intended to identify such forward-looking statements. This release contains forward-looking statements that involve risks and uncertainties concerning the parties’ ability to close the

transaction and the expected closing date of the transaction, the anticipated benefits and synergies of the proposed transaction, anticipated future combined operations, products and services, and the

anticipated role of the Company, its key executives and its employees within SAP following the closing of the transaction. Actual events or results may differ materially from those described in this

release due to a number of risks and uncertainties. These potential risks and uncertainties include, among others, the outcome of regulatory reviews of the proposed transaction, the ability of the

parties to complete the transaction, the failure to retain key employees of the Company, customer and partner uncertainty regarding the anticipated benefits of the transaction, the failure of SAP and the

Company to achieve the anticipated synergies of the proposed transaction and other risks detailed in SAP’s and the Company’s SEC filings, including those discussed in SAP’s Annual Report on Form

20-F for the year ended December 31, 2017 and the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, each of which is on file with the SEC and available at the SEC’s

website at www.sec.gov. SAP is not obligated to update these forward-looking statements to reflect events or circumstances after the date of this document. Readers are cautioned not to place undue

reliance on these forward-looking statements, which speak only as of their dates.

Additional Information About the Merger

In connection with the proposed merger, the Company filed a definitive proxy statement with the SEC on February 22, 2018. The definitive proxy statement has been mailed to the Company’s

stockholders. THE COMPANY’S STOCKHOLDERS ARE URGED TO CAREFULLY READ THE DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS

THERETO) AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT

BEFORE MAKING ANY VOTING OR INVESTMENT DECISION WITH RESPECT TO THE PROPOSED MERGER BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE

PROPOSED MERGER AND THE PARTIES TO THE MERGER. Investors and security holders may obtain free copies of the definitive proxy statement and other related documents filed with the SEC

at the SEC’s website at www.sec.gov. In addition, investors and security holders can obtain free copies of the definitive proxy statement from the Company by contacting Investor Relations through the

investor contact page on the Company’s website at http://investor.calliduscloud.com/about-us/investor-relations/investor-faq/.

SAP, the Company and their respective directors, executive officers and other members of their management and employees, under SEC rules, may be deemed to be participants in the solicitation of

proxies of the Company’s stockholders in connection with the proposed merger. Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of

certain of SAP’s executive officers and directors in the solicitation by reading SAP’s most recent Annual Report on Form 20-F, the definitive proxy statement and other relevant materials filed with the

SEC. Information concerning the interests of the Company’s participants in the solicitation, which may, in some cases, be different than those of the Company’s stockholders generally, are set forth in

the definitive proxy statement.

Safe Harbor Statement

http://www.sec.gov/

http://www.sec.gov/

http://investor.calliduscloud.com/about-us/investor-relations/investor-faq/

Strategy and VisionOpportunity in Time of Disruption

Bill McDermott, CEO


Eight years of significant, sustainable, profitable growth

Driven by strong customer, employee and brand engagement

2009 2017

* Interbrand Ranking. All numbers are non-IFRS unless otherwise stated.

Cloudrevenue

(€)

Totalrevenue

(€)

Operatingprofit

(€)

Marketcap(€)

Cloudusers

EmployeeEngagement

Brandrank

2009 2017 2009 2017 2009 2017 2009 2017 2009 2017 2009 2017 2009 2017

<0.1bn

3.8bn

10.7bn

23.5bn

2.9bn

6.8bn

41bn

115bn

10k

~150m

69

85

#27

#21

>40x

>2.2x>2.3x >2.8x

15,000x

+16pp∆6


SAP Vision for an Intelligent Enterprise


SAP helps the world run better and improves people’s lives

11th year in a row!Most Sustainable

Software Company

Achieved goal of

25%women in

management

Delivering the Intelligent EnterpriseSAP Product Portfolio and Strategy

Bernd Leukert, Executive Board MemberProducts & Innovation

© 2018 SAP SE or an SAP affiliate company. All rights reserved. 9

Winning in the Cloud


Breakthrough Innovation

Around the Digital Core


SAP S/4HANA Recognized

Market Leadership



SAP S/4HANA Cloud Scope




Innovation Across the Business










SAP HANA Data Management Suite


Intelligent Enterprise Enablers

Intelligent Processes | Intelligent Experiences | Intelligent Analytics


Experience


SAP Vision for an Intelligent Enterprise


SAP Cloud Platform


SAP Leonardo Digital Innovation System


Focus on Higher Value Tasks


SAP Multicloud: 3 Strategies to Win

CLOUD

Customer Perspective

Jennifer Morgan, Executive Board MemberGlobal Customer Operations Americas & APJ


Customer perspective

Todd Thompson

Chief Information Officer

Mike Heim


Jeff Mueller


Jeff Mueller

Highly Attractive Business ModelGrowing Predictability and Profitability

Luka Mucic, CFO


Superior organic growth rates throughout cloud transition

Expansion of portfolio and shift to cloud increase SAP’s share of wallet

2015

2.3

2017

8.0 – 8.5

CAGR

+29%

3.8

CAGR

+30%

23.5

2017

CAGR

+7%28.0 – 29.0

CAGR

+7%

20.8

2015 2015

6.36.8

8.5 – 9.0

CAGR

+9%

CAGR

+4%

2017

Cloud Subscription Revenue(€bn)

Total Revenue(€bn)

Operating Profit(€bn)

All figures based on Non-IFRS and do not reflect contributions from the contemplated acquisition of Callidus. Historical growth rates have been

adjusted for currency effects. 20/17 CAGRS based on midpoint of the SAP 2020 Financial Ambition as published on January 30, 2018.

2020(ambition)

2020(ambition)

2020(ambition)


Cloud (€bn)

2.3

3.0

3.8

2015 2016 2020(ambition)

2017 2018(outlook)

4.8 – 5.0

8.0 – 8.5

CAGR

~+29%(w/o large

acquisitions)Software (€bn)

All figures based on Non-IFRS and do not reflect contributions from the contemplated acquisition of Callidus. The CAGR is based on the midpoint of the SAP 2020 Financial Ambition as

published on January 30, 2018. ‘Cloud’ refers to cloud subscriptions and support revenue. ‘Software’ refers to software license revenue.

Cloud transition continues at full momentum

Fast growing cloud eclipses software to dominate future business mix


Share of more predictable revenue increases

Delivering a much more resilient and sustainable business model

37%

Other 63%

More

predictable

Total Revenue

€23.5bn

70 –75%More

predictable

25 –

30%Other

Total Revenue

€28 – 29bn

2020ambition

+7 to +12pp

2017reported

All figures based on Non-IFRS. ‘More predictable revenue’ refers to the sum of cloud subscriptions and support revenue and software support revenue as a percentage of total revenue.


Overall Cloud

Business Network

Public Cloud

Private Cloud

Cloud gross margins inflect upwardsHigh gross margin network and public cloud expected ~90% of mix in 2020

2020ambition2017

reported

84%16%

Cloud

49%

43%

9%

Total Revenue

€23.5bnOther

71%Other

29%Cloud

Total Revenue

€28 – 29bn

~40%

Business

Network

~50%

Public

Cloud

~10%

Private

Cloud

Gross

Margins 2017 2020e

62%

71%

77%

>80%

57%

70%

6%

40%

All figures based on Non-IFRS. ‘Cloud’ refers to cloud subscriptions and support revenue.


Increased transparency in our segment reportingBusiness development by delivery model

Non-IFRS; in percent FY/17 FY/20e

Cloud Subscriptions & Support 62.2 71.0

Business Network

Private Cloud (IaaS)

Public Cloud (PaaS/SaaS)

76.7

5.7

57.0

>80.0

40.0

70.0

Software & Support 87.0 87.5

Cloud & Software 82.2

Services 23.5 23.5

Total Gross Margin 72.5

Gross margins

▪ Strong improvement of the cloud margin

▪ Slight improvement of the SW & support margin

▪ Services margin to remain at current levels

Cost ratios

▪ R&D to remain at current levels

▪ S&M to decline slightly

▪ G&A to decline slightly

All figures based on Non-IFRS. Cost ratios expressed as % of total revenue.


Reaping the benefits of platform investment and scale in the cloud

Expanding gross margins and operating leverage

2015 2016 2017 2018(based on midpoint

of outlook)

30.5%

(-1.5pp cc) 30.1%

(-0.8pp cc)28.9%

(-0.9pp cc)

29.8% cc

(+0.9pp cc)

All figures based on Non-IFRS. Stated percentage point deltas exclude exchange rate effects. 2018 outlook includes effects from the application of

IFRS 15 (total revenue: substantially less than +€0.1bn; operating profit: approximately +€0.2bn).

Operating

Margin

Early stage cloud transition margin

headwind > efficiency gains

▪ Upfront investments in modernizing and

harmonizing acquired cloud infrastructures

▪ Mix shift effects from cloud transition

▪ Efficiency gains in software and support

Entering margin expansion phase

▪ Scaling cloud + platform migration

▪ New high potential cloud solutions exit start-up phase, ramp margins

▪ S&M leverage: declining cost of new business acquisition [2017 total

order entry +17%, S&M +9%] + ever higher recurring & transactional

revenue base

▪ R&D leverage: single code base, away from “any DB”

2020(based on midpoint

of outlook)

30.7%

(+0.9pp)


Beyond 2018, strong operating cash flow growth and moderating CapExdrive free cash flow

Operating cash flow (€bn)

▪ Operating cash flow driven by strong overall

business growth

▪ Tracks higher profitability

▪ Supports increased dividend payout ratio,

now raised to at least 40% of profit after tax

CapEx development (€bn)

▪ Higher CapEx in 2015-18 driven by platform

migration, new data centers and expanded HQ

space

▪ Quickly moderating CapEx growth beyond 2018

▪ Partnering with hyperscale cloud providers lowers

future CapEx investment needs

(1) projected

2015 20182016 2017 2019

0.64bn

1.0bn

<1.6bn(1)

3.6

5.0

20202015 2017

1.3bn


▪ Cloud Subscription Revenue

€4.8 – 5.0bn,

up 27% to 33%

▪ Cloud and Software

Revenue €20.7 – 21.1bn,

up 6% to 8%

▪ Total Revenue

€24.6 – 25.1bn,

up 5% to 7%

▪ Operating Profit

€7.3 – 7.5bn,

up 8% to 11%


€8.0 – 8.5bn

▪ Total Revenue

€28.0 – 29.0bn


€8.5 – 9.0bn

▪ Share of more predictable

revenue 70% to 75%


€3.77bn

▪ Cloud and Software Revenue

€19.55bn

▪ Total Revenue

€23.46bn


€6.77bn

2018 outlook and long term ambitions

Fast cloud growth, robust overall topline and higher profitability

Non-IFRS; *Non-IFRS at constant currencies. Outlook 2018 and ambition 2020 do not include any contribution from Callidus.

2017 2018outlook*

2020ambition

Beyond 2020

▪ Fast growing cloud business

increasingly dominates

business mix

▪ Cloud scale, ever higher

recurring base lead to

consistent expansion of

operating margin


▪ SAP is perfectly positioned to address a massive and rapidly

growing market opportunity – enabling digital transformation for

companies to thrive in the digital age.

▪ Our leading innovation is powering organic growth which is

outpacing our key competitors.

▪ We deliver all of this through a much more predictable, resilient and

sustainable business model.

▪ We have already made the key investments and now expect to

reap the benefits with strong growth, increasing profitability and

cash-flow through 2020 and beyond.

Strong growth, increasing predictability and

profitability through 2020 and beyond

Q&A

Bill McDermott, CEOChristian Klein, Global Business OperationsBernd Leukert, Products & InnovationJennifer Morgan, Global Customer Operations Americas & APJLuka Mucic, CFO

SAP Capital Markets Day

March 6, 2018

Documents

SAP Capital Markets Day...including update on SAP S/4HANA Cloud by Franck Cohen, President Cloud ERP and demo by Franz Faerber, EVP Products & Innovation Big Data 02:20 ± 02:40 pm