Best in class Retailing with SAP for Retail

Best in class Retailing with SAP for Retail Niko Michopoulos, SAP IBD EMEA Trading Industry Sofia, 29. November 2007

Agenda 1. SAP: Corporate Profile 2. SAP’s Solution and Service Portfolio for Retail Business 3. SAP’s Market Position in Retail Business 2

Summary of SAP Today SAP AG in 2006 revenues: € 9. 4 billion More than 43, 000 companies run SAP software Providing more than 25 industry solutions 42, 772 SAP employees (September, 2007) 12 million users in 120+ countries team with us to… Integrate their business processes Extend their competitive capabilities Get a better return on investment at a lower total cost of ownership Unique partner ecosystem More than 3, 850 partners Overall more than 180, 000 SAP partner certificates © SAP 2007 / Page 3 3

SAP is Well Positioned for Growth © SAP 2007 / Page 4 4 Trusted business partner for 43, 000+ companies – the largest installed base in the enterprise software sector Deep vertical expertise with strategic solutions for more than 25 industries Great innovation power with 12, 532 developers Largest ecosystem in the industry system integrators, ISVs, OEMs, resellers, partners One of the top brands globally #34 according to Business. Week

SAP's Global R&D Organization >30% of SAP’s developers are located across the globe in 8 SAP Labs Germany Walldorf Canada Montreal USA Palo Alto è Business Innovation è Ecosystem è Engineering è Business Process Know-How Hungary Bulgaria Shanghai Sofia Israel Ra’anana è Technological Innovation © SAP 2007 / Page 5 5 China Budapest India Bangalore è Talent pool

SMALL MIDSIZE LARGE Extending the Portfolio to Address an Untapped Market © SAP 2007 / Page 6 6 SAP Business Suite including SAP ERP 6. 0 > 2, 500 employees SAP Business All-in-One < 2, 500 employees SAP Business By. Design 100 -500 employees SAP Business One < 100 employees

SAP – The Employer of Choice Great Place to Work Institute SAP Germany voted 1 st place as bet Employer in Germany Special Award for Health Great Place to Work Institute SAP Germany voted 1 st place as the best Employer in Germany Special Awards for Diversity and Fairness © SAP 2007 / Page 7 7 Recruiting and Staffing Best In Class (RASBIC) Award 2006 for SAP Labs India from Bharati Vidyapeeth’s Institute of Management Studies & Research.

Outstanding Employee Engagement* 91% of SAP employees worldwide believe in SAP’s products and services 90% of SAP employees worldwide believe strongly in the goals and objectives of SAP 86% of SAP employees worldwide are proud to work for SAP 79% of SAP employees worldwide recommend SAP as a great place to work * Results of SAP’s Employee Survey 2006 (survey is conducted every two years; participation rate over 82%) © SAP 2007 / Page 8 8

Agenda 1. SAP: Corporate Profile 2. SAP’s Solution and Service Portfolio for Retail Business 3. SAP’s Market Position in Retail Business 9

Why SAP for Retail? International Scalable system Mergers and Acquisitions Improving Information Basis Increasing Efficiency Data consistency Reducing Total Cost of Ownership Increasing Ø 10 Expansion Flexibility To Be Prepared for the Fast Moving Retail Business

Retail – Industry Drivers Economy & Regulation Economy – Interest Rates, FX Rates, House Prices, Gas Prices, Healthcare, Social Security Environment – being Green Regulation – SOX, Privacy, Security, PCI Compliance Suppliers Customers Global sourcing Private label Product development Global Data Synchronization Collaborative processes Exclusive/strategic partnerships Funding and allowances B 2 C u Socio-economic (wealth, education) Retail Business Technology Innovation (Web 2. 0, Mobile) Price/performance, TCO Outsourcing/Offshoring RFID Virtual Worlds Biometrics B 2 B u Dealer/Franchise u Tradesman/Jobber/ Contract u Corporate u Government/Non-proft Personalization Loyalty Multi-channel, 24 x 7 Competitors 11 u Ethnicity u Gender u Age Pure play e-Tailers (Amazon, e. Bay, etc. ) Advertising Platforms (Google) Manufacturers – stores, e. Commerce (Apple, Dell, HP, Sony) Wholesale distributors, VARs & Service providers (T-Mobile) Foreign players (Wal. Mart, Home Depot, Office Depot) Private Equity

One Integrated Platform for Vendors and Multi - Channel Formats Stores RFID EDI CPFR Vendors B 2 B Retailer Consumers Franchise Crossdocking Import Management Tracking & Tracing Category Management 12 Call Center Wholesale

SAP – IT-Solution for Global Players The only truly global solution with solutions for 59 countries and 30 languages SAP Solution (Key capabilities localized by SAP) SAP/Partner Solution (Key capabilities localized by SAP and partner) Partner Solution (Key capabilities localized by partners) Project Solution (Key capabilities localized in a consulting project) 13

SAP Retail – Main Solution Categories Corporate Operations Store & Multi Channel Master Data, Forecasting & Analytics Supply Chain 14 Planning & Category Mgmt Sourcing & Buying

The SAP Business Process Platform reduces TCO DIFFERENTIATION PRODUCTIVITY Partner Application SAP Application Customer Application SAP Application ENTERPRISE SERVICES Enterprise Services Repository SCM SRM PLM CRM 15 ERP REUSE PROCESS STEPS AND ENTERPRISE SERVICES IN CUSTOM PROCESSES SAP Net. Weaver

SAP Consulting Services - Overview SAP Consulting Services Plan Build Run SAP Business Strategy & IT Strategy Consulting Business and Value Assessment Strategic Consulting Services Solution Delivery Solution Strategy & Architecture Business Process & Org Design Implementation Integration & Development System & Technology Deployment Lifecycle Management Services Evolution Value Measurement Business Proc. Optimization Operations Consulting Harmonization & Conversion Quality Assurance / Risk Management Organizational Change & Knowledge Management Program- & Project Management 16 Operations Services

Best Practices for SAP for Retail Projects Best Practices Customers Surveys + Market Research Internal Consultants 17 Partners

SAP Active Global Support Operational Efficiency IE DE UK US ES F CN AT CN CH MX JP KR IN IN SGP BR ANZ LOCAL SUPPORT REGIONAL SUPPORT GLOBAL SUPPORT CENTER AMERICAS EUROPE / AFRICA ASIA / PACIFIC WORLDWIDE ACTIVE GLOBAL SUPPORT NETWORK WITH 3000 EMPLOYEES IN 40 COUNTRIES SUPPORTING 43. 000 CUSTOMERS. 18

Agenda 1. SAP: Corporate Profile 2. SAP’s Solution and Service Portfolio for Retail Business 3. SAP’s Market Position in Retail Business 19

Trade Remains Strong & Growing for SAP Merchandise Management Customers by Segment Merchandise Management Customers 20

Strong customer base worldwide Grocery Health & Beauty Convenience Postal Services/ Telco 21

Strong customer base worldwide Fashion General Merchandiser Catalogue Mail Order/ Internet Selling 22

Strong customer base worldwide Misc. Speciality 23 Misc. Speciality

Strong customer base worldwide DIY/ Home Improvement Home Furnishings 24 Wholesale/ Cash&Carry/ Franchise Business

SAP's Mission Statement SAP will… … define and establish undisputed leadership in the emerging market for business process platform applications, … accelerate business innovation powered by IT for firms and industries worldwide, … and thus contribute to economic development on a grand scale. © SAP 2007 / Page 25 25

Thank you! 26