Software Revenue Increases Around 34% (Around 24% at Constant Currencies) To Approximately €1.5 billion

Full-Year 2010 Non-IFRS Software and Software Related Service Revenue Increases Around 20% (Around 13% at Constant Currencies) and Exceeds Company Guidance

Full-Year 2010 Non-IFRS Operating Margin of Around 31.5% (Around 30.5% at Constant Currencies)

WALLDORF - January 13, 2011 - After a preliminary review of its 2010 fourth quarter performance, SAP AG (NYSE: SAP) today announced the following preliminary financial results for the fourth quarter and full year ended December 31, 2010.

Fourth Quarter 2010

• IFRS software revenue: approximately €1.50 billion (2009: €1.12 billion), an increase of around 34% (around 24% at constant currencies).
• IFRS software and software-related service revenue: approximately €3.26 billion (2009: €2.57 billion), an increase of around 27%. Non-IFRS software and software-related service revenue: approximately €3.30 billion (2009: €2.57 billion), an increase of around 28% (around 20% at constant currencies).
• IFRS total revenue: approximately €4.04 billion (2009: €3.19 billion), an increase of around 27%. Non-IFRS total revenue: approximately €4.08 billion (2009: €3.19 billion), an increase of around 28% (around 19% at constant currencies).
• Non-IFRS operating margin: approximately 39% (2009: 35.5%), or approximately 38% at constant currencies, an increase of around 4 percentage points (around 3 percentage points at constant currencies). In contrast to the respective quarter in 2009, the fourth quarter of 2010 was not materially impacted by restructuring expenses which had, in the fourth quarter of 2009, negatively impacted the Non-IFRS operating margin by 0.3 percentage points.

“We are pleased to announce the best software sales quarter in the history of SAP. We achieved outstanding growth in all regions and customer segments,” said Bill McDermott, Co-CEO of SAP. “This result is clear proof that focusing on innovation and customer value is the right strategy,” said Jim Hagemann Snabe, Co-CEO of SAP.

Full Year 2010

• IFRS software revenue: approximately €3.26 billion (2009: €2.61 billion), an increase of around 25% (around 16% at constant currencies).
• IFRS software and software-related service revenue: approximately €9.78 billion (2009: €8.20 billion), an increase of around 19%. Non-IFRS software and software-related service revenue: approximately €9.85 billion (2009: €8.21 billion), an increase of around 20% (around 13% at constant currencies).
• The Company’s full-year 2010 Non-IFRS software and software-related service revenue growth rate of around 13% at constant currencies exceeds its previously published outlook range of 9% - 11%.
• IFRS total revenue: approximately €12.45 billion (2009: €10.67 billion), an increase of around 17%. Non-IFRS total revenue: approximately €12.52 billion (2009: €10.68 billion), an increase of around 17% (around 11% at constant currencies).
• Non-IFRS operating income: above €3.9 billion. Non-IFRS operating margin: approximately 31.5% (2009: 27.4%), or approximately 30.5% at constant currencies, an increase of around 4 percentage points (around 3 percentage points at constant currencies). The Company’s full-year 2010 Non-IFRS operating margin at constant currencies at around 30.5% is in line with the Company’s previously published outlook range of 30 – 31%. The full year 2010 Non-IFRS operating margin was not materially impacted by restructuring expenses which had negatively impacted the Non-IFRS operating margin by 1.8 percentage points in 2009.

The company has not yet completed its preliminary review of the appropriate re-measurement of the provision recorded for the TomorrowNow litigation following the jury verdict of USD 1.3 billion released in November 2010. The expense resulting from this re-measurement impacts SAP’s IFRS operating margin but does not have an effect on SAP’s Non-IFRS operating margin. Therefore, the company does not yet have available and cannot yet disclose preliminary fourth quarter and full year 2010 IFRS profit and IFRS operating margin numbers or reconciliations from the disclosed Non-IFRS operating margin to the IFRS operating margin.

The company expects that the re-measurement of the provision recorded for the TomorrowNow litigation will have significant negative impact on SAP’s preliminary fourth quarter and full year 2010 IFRS operating profit and IFRS operating margin. The company also expects, as a consequence, that the fourth quarter and full year 2010 IFRS tax rate will be lower than the Company’s previous expectations of 27.5 – 28.5%.

The deferred support revenue write-down from acquisitions and the acquisition-related charges which are eliminated for the purpose of SAP’s Non-IFRS revenue and operating margin numbers are expected to amount, in the fourth quarter 2010, to €36 million and €98 million respectively (full year 2010: €72 million and €301 million respectively).

SAP will provide further details of its 2010 preliminary results and outlook for the full-year 2011 on January 26th.