e Best-Run Businesses Run SAP
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`SAP.com
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`About SAP AG
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`Company information
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`Engush
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`Deutscn
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`Overview
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`2002-Present
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`1992-2001
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`1982-1991
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`1972-1981
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`2002-present: real-time data
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`where and when you need it
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`time data access — anywhere.
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`Real-time moves to the Web and beyond: Cloud computing,
`mobile, and in—memory computing open up new horizons for real-
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`2002 — 2012: Highlights
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`2002
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`More birthday cake: Thirty years after its foundation, SAP is the third—largest independent software provider in the world and a paragon of
`the German economy. The SAP brand stands for high—quality business software.
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`A rising star: SAP's portfolio is not the only thing witnessing constant growth. The company's workforce also increases to around 29,000
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`SAP Exhibit 1016
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`SAP Exhibit 1016
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`by the end of 2002. Approximately 1,300 employees move into the new star—shaped building that has opened directly adjacent to SAP's
`headquarters in Walldorf.
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`New blood at the top: The Executive Board bolsters its ranks with Shai Agassi, who assumes responsibility for new technologies, and
`Leo Apotheker, who takes over global sales.
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`2003
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`End of an era: Hasso Plattner resigns from the Executive Board and is elected chairman of the Supervisory Board. Plattner is the final
`SAP co-founder to leave the company's management team, but remains with SAP in an advisory role. Upon taking his leave, the nautical
`enthusiast receives a special gift — a sail signed by all of SAP's employees, which they hope will carry him to further success.
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`Technology of the future: What began in the "new economy" as mysap.com and evolved to mySAP technology reaches a new pinnacle
`in SAP NetWeaver. This technology enables SAP to offer fast, open, and flexible business applications that support end—to—end business
`processes — no matter whether they are based on systems from SAP or other providers.
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`Global developments: SAP Labs China marks the ninth opening ofa development location outside of Walldorf. This and the other
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`research centers in India, Japan, Israel, France, Bulgaria, Canada, and the United States help SAP convert IT expertise into business
`utility for its customers. The company now employs around 30,000 employees, approximately 17,000 of whom work outside of Germany.
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`2004
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`Major success: SAP brings the first version of SAP NetWeaver to market. The response to this new integration and application platform is
`oven/vhelming. By the end of the year, well over 1,000 customers acquire the product, with even more on the way. Meanwhile, more than
`24,000 total customers are running 84,000 SAP software installations in over 120 countries.
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`Joining forces: SAP announces its intention to acquire the remaining shares of its consulting subsidiary SAP Si and to merge the
`company into its corporate group. This move strengthens SAP's global portfolio of strategic IT consulting and integration services and
`makes SAP the go—to provider of many customers — especially those in Germany, Switzerland, and the United States.
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`A clear vision: SAP plans its future around the concept of enterprise service-oriented architecture (enterprise SOA). According to CEO
`Henning Kagermann, SAP will make all of its business applications service-based in the medium term to provide its customers with the
`most flexibility possible. In doing so, SAP sets the standard for the rest of the market.
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`Strong statistics: Under Kagermann's leadership, quarterly revenue gains and a constantly increasing market share keep SAP at the
`head of the pack in the rejuvenated IT market. Business Week names Kagermann one of the 25 best business managers in Europe,
`praising his customer—oriented corporate philosophy.
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`2005
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`Excellence recognized: A study conducted on behalf of the business magazine Capital names SAP Germany "Best employer of 2005"
`among other companies with 5,000 employees or more. ''I accept this award with pride and gratitude on behalf of the more than 32,000
`people who work at SAP. For us as a company, it will mainly serve as motivation for the future. After all, SAP's success will continue to
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`depend on the skills, drive, and dedication of our current and future employees," declares SAP Executive Board member Claus Heinrich
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`upon receiving the award from Wolfgang Clement, Germany's Federal Minister of Economics and Technology.
`Something cooking in the east: in February, SAP officially opens its new research and development facility in the Hungarian capital of
`Budapest. SAP Labs Hungary and its some 50 developers join SAP's global network of research locations, which incorporates the
`brightest minds in IT all over the world.
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`Organic growth: The year 2005 is marked by a series of acquisitions. While its competitors initiate their own major takeovers, SAP
`focuses on organic growth by acquiring smaller companies whose specific solutions augment its portfolio in sensible ways. These
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`companies include the two retail providers Triversity and Khimetrics.
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`Impressive numbers: The company's software license revenues increase by 18%, and it records particularly high rates of growth in the
`Americas. The more than 35,800 SAP employees around the world generate total revenues of €85 billion.
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`2006
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`International recognition: SAP once again garners numerous employer accolades. Along with SAP Germany, SAP Austria, SAP Chile,
`SAP Andina y del Caribe, SAP Mexico, and SAP Region Sur win the "Great Place to Work" award from the institute of the same name. In
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`addition, SAP Labs India receives the distinction "Recruiting and Staffing Best in Class" from the Indian Institute of Management Studies &
`Research for its innovative methods in workforce planning and management.
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`Harmonious partnership: SAP and Microsoft introduce Duet, the first product of the two companies‘ joint efforts in development, support,
`sales, and marketing. This software enables users to quickly and easily integrate Microsoft Office and SAP-supported business processes.
`The partners sell 200,000 licenses in just the first three months.
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`Onward to further success: At the first SAPPHIRE event of the year in Orlando, Florida, SAP announces the general release of its
`flagship application, SAP ERP. "SAP ERP constitutes the foundation of SAP's industry solutions and a springboard to enterprise SOA,"
`says SAP Executive Board member Léo Apotheker.
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`Good news from the midmarket: SAP noticeably expands its share of the midmarket with the solutions SAP All-in—One and SAP
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`Business One. In June, the company announces that the latter solution has gained its 10,000th customer. SAP also has generates around
`30% of its €3.1
`billion in total software licensing revenues from companies with fewer than 2,500 employees.
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`2007
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`Seizing new opportunity: When an acquisition makes sense in enhancing its product portfolio, SAP does not shy away from the
`investment required. The company buys Pilot Software — a private California provider of strategy management software — as well as Yusa,
`Outlooksoft, VVicom, and MaXware. SAP also announces its intention to purchase Business Objects, a company specializing in business
`intelligence applications.
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`Restructure of the Executive Board: Léo Apotheker is named SAP's deputy CEO at the end of March. SAP also forms an Executive
`Council, which comprises corporate officers who share responsibilities for market and product strategies and report to the Executive
`Board. This restructuring follows Shai Agassi's departure from the Executive Board.
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`Another year, another employer accolade: In its 35th year, SAP takes home the title of "Germany‘s Best Employer" for the third time in
`the annual "Great Place to Work" awards. The company also receives a special prize for its comprehensive health management program.
`SAP Labs India also ranks eighth among other employers in India.
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`Head start in the midmarket: As part of a special event in New York City, SAP reveals SAP Business ByDesign, a product designed
`specifically for small businesses and midsize companies. SAP CEO Henning Kagermann states that this new offering "represents SAP's
`ambitious attempt to create an all—new solution for an untapped market."
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`2008
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`In the bag: SAP successfully completes its acquisition of Business Objects. Purchasing the French provider of business intelligence
`solutions expands SAP's software portfolio and makes it the market leader in business software, enterprise performance management,
`and business intelligence.
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`The choice of skilled employees: For the fourth time, SAP is named "Germany's Best Employer" among companies with at least 5,000
`employees. The company also receives numerous awards in other countries, including China, Bulgaria, Denmark, India, Japan, and
`Mexico.
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`A global focus: The SAP Supervisory Board names Léo Apotheker co-CEO alongside Henning Kagermann. Two longstanding members,
`Peter Zencke and Claus Heinrich, resign from the Executive Board. The board then welcomes Ernie Gunst, Bill McDermott, and Jim
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`Hagemann Snabe, whose international backgrounds will enrich SAP's executive management.
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`Sustainable business: SAP proves its commitment to sustainable business practices, releasing its first Sustainability Report. As the
`leader in its market, SAP is in a unique position to provide information technology that helps companies and organizations of all sizes
`improve their track records and achieve |ong—term sustainability.
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`2009
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`Difficult times: Vlfith the effects of the global financial crisis having reached the real economy in 2008, the business world faces its own
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`plight. Susceptible to the situation at hand, SAP initiates personnel cutbacks and other cost—saving measures. As of Q3 2009, SAP still
`employs some 47,800 people. Meanwhile, the company supports its customers with special programs designed to help them emerge from
`the crisis with the strength to succeed. Thanks to these programs and its cutbacks, SAP is able to improve its operating margin despite the
`difficult circumstances.
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`Another business milestone: At a launch event at its offices in New York City, SAP unveils its SAP Business Suite 7 software, which is
`designed to help businesses optimize their performance and reduce IT costs. A condensed ramp—up phase enables the first customers to
`go live with the software in March. In early May, the next generation of the suite is released to the rest of the world.
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`Passing the torch: After 27 years at the company — including 18 years on the Executive Board — Henning Kagermann bids farewell to
`SAP. Léo Apotheker becomes the company's sole CEO. In his inaugural address to SAP's employees in June, he stakes out a clear new
`path for the company, including his plans for SAP's future, its purpose, and the associated values.
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`In it for the long haul: SAP demonstrates how important it considers social involvement by supporting PlaNet Finance, an international
`non—profit organization that aids microfinance institutions (MF|s). SAP and PlaNet Finance aim to optimize the microfinance sector with a
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`combination of financing, new technologies, and expanded value chains. In advance of the 15th United Nations Climate Change
`Conference in Copenhagen (COP15), SAP also offers its assistance to the U.N.'s Hopenhagen initiative. Last but not least, SAP
`employees continue to volunteer their time in support of social projects all over the world.
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`2010
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`Dynamic duo: In February, the Supervisory Board names Bill McDermott and Jim Hagemann Snabe co—CEOs of the company. Chief
`technology officer Vishal Sikka also joins the Executive Board. Angelika Dammann follows Sikka in July, becoming the first woman to
`serve on the Executive Board as she assumes responsibility for global human resources and labor relations.
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`Major acquisition: In May, SAP announces its plans to purchase the California company Sybase for approximately US$5.8 billion.
`Sybase is the largest business software and service provider specializing exclusively in information management and mobile data use.
`The synthesis of the two leading companies is to produce solutions for "wireless" companies.
`Real-time innovation: More than 50,000 customers and other interested people attend SAP's SAPPHIRE Now event either live or online
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`— a new record. In addition to a comprehensive overview of SAP's product strategy, they witness numerous innovations — chief among
`them is in—memory technology which ushers in a new era of real—time processing in business applications.
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`2011
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`Outstanding results: The new year gets off to a great start. Software revenue of EUR 1.5 billion in the final quarter of 2010 enables co-
`CEOs Bill McDermott and Jim Hagemann Snabe to point to the best quarter in SAP's history and pleases investors. Double-digit growth in
`the following quarters shows that more and more customers are turning to SAP's software innovations.
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`Anytime, anywhere: Customers, already excited in 2010 by SAP's vision of SAP in—memory computing, are able to take full advantage of
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`its benefits in 2011. Initial customers implement the first in-memory product, the SAP HANA platform, enabling them to analyze data in
`seconds rather than the days or even weeks they would othenivise have needed. Demand for SAP HANA can be compared to that for SAP
`R/3 software at the time of its launch. SAP's strategy for mobile business applications is also bearing fruit. Since its acquisition of Sybase,
`an SAP company, in 2010, SAP and its partners now ship mobile applications that open up the SAP world to a new type of user — those
`who are out in the field rather than in the office.
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`Growth: SAP announces its plans for growth: It is looking to expand in emerging market economies such as Brazil, India, Russia, and
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`especially China, and it intends to invest some EUR 2 billion in the mid—market sector alone. It also has growth plans for its business in the
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`booming cloud—computing market. Just before the end of the year, SAP announces its EUR 2.5 billion acquisition of SuccessFactors, the
`leading provider of cloud applications.
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