1. Hosted by SAP 2003: Your Technology and Business Roadmap Jim Shepherd Senior Vice President AMR Research

2. Hosted by Agenda SAP’s Business Strategy SAP’s Product Strategy SAP’s Technology Direction What Should You Worry About ? Maximizing The Value of Your SAP Investment

3. Hosted by SAP Snapshot 7.4B € in FY02 Revenues 56% from Maintenance and Services FY03 Expectation: Flat Revenue, Improved Profits 19,300 Customers 50,000+ Installations – 120+ Countries 23 Industry Solutions

4. Hosted by SAP’s Business Strategy Account Control- “The Reliable Business Partner” Growth – “Influence Greater Share of IT Spending” Customer Lifecycle Management - “ROI -SAP Delivers Value Services, Maintenance, & Add-ons New Markets and Channels “We don’t want to be just the safe haven– Consider us your trusted innovator” Henning Kagermann – Sapphire 2003

5. Hosted by CIO Issue 10% 40% OPERATION CONSOLIDATION INNOVATION 30% 60% Today3 years from now 20-25% 35-40% Source: SAP AG

6. Hosted by SAP Business Strategy: Infrastructure Consulting Infrastructure Consulting Infrastr. Software Infrastr. Software Technical Support Technical Support Infrastructure Support Infrastructure Support Business Software Business Software Business Consulting Business Consulting System Support System Support Out- sourcing System Integration System Integration System Integration System Integration System Integration* System Integration* Discover & Evaluate -> Implement -> Operate Hardware OS, DB,... Hardware OS, DB,... Strategic Consulting Application Layer Middleware Layer IT Layer Source: SAP AG Become Your “Trusted Partner”

7. Hosted by SAP Business Strategy: New Maintenance Offerings Architecture Planning Custom Development Consulting System Integration Operations Planning & Optimization Hosting / Outsourcing “Extended Range of Services”

8. Hosted by SAP Business Strategy: Source: SAP AG SAP Direct Sales Vertical Resellers Business One Centers Sales/Service Partners New Markets and Channels

9. Hosted by SAP Product Strategy: SAP NetWeaver SAP for SAP Enterprise Portal SAP Master Data Mgmt. SAP Business Intelligence SAP Exchange Infrastructure mySAP Business Suite mySAP ERP mySAP CRM mySAP SCM... SAP xApps SAP xApp Resource & Program Management SAP xApp Mergers & Acquisitions... SAP Smart Business Solutions mySAPAll-in-One SAPBusinessOne SAP Packaged Solutions Service Management for Financial Insights for... SAP Mobile Business SAP Web AS SAP for Aerospace & Defense SAP for Oil & Gas... Source: SAP AG All Things For All Buyers

10. Hosted by SAP Customers Within Fortune 500 source: Fortune 500 2002; SAP Analysis Source: SAP AG SAP Vertical Market Penetration:

11. Hosted by Current Application Strategy The Ever Expanding mySAP Business Suite R/3 Enterprise or MySAP ERP ? Scalability : All-in-One and Business One The xApps (Cross-Applications) Framework

12. Hosted by The Ever Expanding mySap Business Suite Business PartnersWorld Internet Extranet Enterprise Group ENTERPRISE COLLABORATION Advanced Supply Chain Planning Customer Relationship Mgmt Business Warehousing Intranet R/3 Logistics R/3 Accounting R/3 HR R/3 Fulfillment... B2B Procurement Strategic Enterprise Management Knowledge Warehouse Comprehensive e-Business Solutions Industry-Add-ons Portals Marketplaces Supply Chain Hubs Collaborative Engineering E-Recruiting Electronic Bill Presentment & Payment Collaborative Forecasting Source: SAP AG

13. Hosted by SAP Product Strategy: mySAP.com Headquarters Factory Distributor SAP R/3 Enterprise SAP Business One Sales Subsidiary SAP All-in-One Exchange Infrastructure Source: SAP AG Scalability

14. Hosted by SAP Product Strategy: xApps are Packaged Composite Applications. They deliver new end-to-end business processes, that snap-on to an existing IT environment. Start out as separate next practices but migrate to suite-based best practices New, snap on cross-functional business process Existing applications and data sources xApp Source: SAP AG xApps

15. Hosted by Source: SAP AG Functional Transactions (Hindsight) Business Views, Events (Context & Insight) SCM CRM PLM HRHR HRHR Finan- cials Finan- cials Legacy Desk- top/ Office Support Desk- top/ Office Support SRM SAP xApp Employee Productivity SAP xApp Resource and Program Mgmt SAP xApp Product Definition SAP xApp Mergers and Acquisitions Announced xApps

16. Hosted by R/3 Enterprise SAP Web Application Server 6.20 Replaces Basis Server Provides J2EE and ABAP Support Common Foundation for all mySAP.com Components SAP R/3 Enterprise Extension For SCM SAP R/3 Enterprise Extension For FIN SAP R/3 Enterprise Extension For HR SAP R/3 Enterprise Extension For Travel SAP R/3 Enterprise Extension For PLM SAP R/3 Enterprise Core 4.7 All Existing R/3 Functionality Future Changes limited to: Legal Changes Defect Fixes Performance Enhancements

17. Hosted by R/3 Enterprise Rollout New “Ramp-up” Release Process ~200 Customers in Controlled Release Phase 1000’s of Copies Shipped Since January Reports From Customers Are Very Positive Internal Customer Release Restricted Shipments Unrestricted Shipments 7/0212/02

18. Hosted by mySAP SCM mySAP PLM mySAP SRM mySAP CRM mySAP ERP Financials Human Resources Corporate Services Operations Maintenance & Quality Inventory & Production Sales Order & Delivery Management Purchase Order Management SAP NETWEAVER mySAP Business Suite Source: SAP AG

19. Hosted by SAP NetWeaver Corporate Services Operations Management Human Resources Financials Employee Relationship Management Employee Lifecycle Management Employee Transaction Management Purchase Order Management Maintenance & Quality Production Management Inventory Management Corporate Real Estate Management Incentive & Commissions Management Travel Management Application PlatformProcess IntegrationInformation IntegrationPeople Integration mySAP ERP Analytics Financial AnalyticsWorkforce AnalyticsOperations Analytics Strategic Enterprise Management Delivery Management Sales Order Management Financial Accounting Financial Supply Chain Management Management Accounting Source: SAP AG

20. Hosted by mySAP SCM mySAP CRM + + mySAP Business Suite Customer can buy and deploy mySAP Business Suite + mySAP SCM mySAP CRM + R/3 Enter- prise SAP NetWeaver Quickstep Packages + mySAP ERP Customer can buy and deploy mySAP ERP Combining mySAP ERP & Solutions Customer can combine mySAP ERP with mySAP Solutions Combining R/3E & Parts Customer can combine existing R/3 Installations with Solutions, SAP NetWeaver (also parts of it like e.g. Portal or BI) and with Quickstep packages SAP NetWeaver mySAP Business Suite SAP NetWeaver mySAP ERP SAP NetWeaver mySAP ERP + + + Quickstep Packages + + 1 2 3 4 SAP Migration Strategy

21. Hosted by Source: SAP AG New technology foundation of MySAP products Centralized collection of SAP technologies Application Servers UI Management Integration Framework Security Business Process Mgmnt Data Warehousing Portal Framework Etc. Neutral positioning toward IBM WebSphere and Microsoft.NET.NET Web- Sphere … DB and OS Abstraction People Integration Composite Application Framework Process Integration Integration Broker Business Process Management Information Integration Business Intelligence Knowledge Management Life Cycle Management PortalCollaboration J2EEABAP Application Platform Multi-Channel Access SAP NetWeaver™ DB and OS Abstraction Master Data Management SAP NetWeaver

22. Hosted by What Should You Be Worrying About ? Instance Consolidation New mySAP.com Functionality PLM, APO, Portals, CRM, etc. Release Strategy & Expectations R/3 Enterprise, MySAP ERP, MySAP Business Suite ? Extended Deployment Internally Externally

23. Hosted by Maximizing Your SAP Investment Competency Center -- Business Process Improvement Not A Help Desk! Continuous Training & Education Enterprise Performance Management (EPM) Network Theory -- A system becomes more valuable as it touches more users Any ERP System Needs Better Public Relations