Oracle Corporation et al v. SAP AG et al

Filing 1200

Declaration of Kevin M. Papay in Support of 1199 Brief Offer Of Proof Regarding Oracle's Hypothetical License Damages filed byOracle International Corporation. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C, # 4 Exhibit D, # 5 Exhibit E, # 6 Exhibit F, # 7 Exhibit G, # 8 Exhibit H, # 9 Exhibit I, # 10 Exhibit J, # 11 Exhibit K, # 12 Exhibit L, # 13 Exhibit M, # 14 Exhibit N, # 15 Exhibit O, # 16 Exhibit P, # 17 Exhibit Q, # 18 Exhibit R, # 19 Exhibit S, # 20 Exhibit T, # 21 Exhibit U, # 22 Exhibit V, # 23 Exhibit W, # 24 Exhibit X, # 25 Exhibit Y, # 26 Exhibit Z, # 27 Exhibit AA, # 28 Exhibit BB, # 29 Exhibit CC, # 30 Exhibit DD, # 31 Exhibit EE, # 32 Exhibit FF, # 33 Exhibit GG, # 34 Exhibit HH, # 35 Exhibit II, # 36 Exhibit JJ, # 37 Exhibit KK, # 38 Exhibit LL, # 39 Exhibit MM, # 40 Exhibit NN, # 41 Exhibit OO, # 42 Exhibit PP, # 43 Exhibit QQ, # 44 Exhibit RR, # 45 Exhibit SS, # 46 Exhibit TT, # 47 Exhibit UU, # 48 Exhibit VV, # 49 Exhibit WW, # 50 Exhibit XX, # 51 Exhibit YY, # 52 Exhibit ZZ, # 53 Exhibit AAA, # 54 Exhibit BBB, # 55 Exhibit CCC, # 56 Exhibit DDD, # 57 Exhibit EEE, # 58 Exhibit FFF, # 59 Exhibit GGG, # 60 Exhibit HHH, # 61 Exhibit III, # 62 Exhibit JJJ, # 63 Exhibit KKK, # 64 Exhibit LLL)(Related document(s) 1199 ) (Howard, Geoffrey) (Filed on 8/2/2012)

EXHIBIT SS

SAP Priorities by Cluster
Expand Addressable
Market by Organic Growth
~$30bn

~$70bn

Business User

Duet
Usability (Project Muse)
Analytics

Midmarket

A1s without compromise
Modernized simplified A1 (“New A1”)
“New A1” as appliance for 2 industries
CRM on Demand, deployment models

Leader in
Business User
Solutions
#1 Midmarket

Platform

#1 Business
Process
Platform

#1 ERP

Leader in
Industry
Solutions
+
#1 CRM, #1 SCM
#1 SRM, #1 PLM
#1 ERP

2005

2010E

#1 CRM, #1 SCM,
#1 SRM, #1 PLM

Service Enablement of ERP2005 (BPP)
Establish SAP NetWeaver as the
integration platform #1
Enterprise SOA showcases
Ecosystem

Industries

Improve solution for “services
industries”
New industry positioning

Suite

Stabilize CRM
Accelerate ERP upgrade
End-to-end supportability
SCM

Best-Run SAP

BPR for volume business

© SAP AG 2006, Global Service & Support Manager Info Session, G. Oswald / 2

2

Accelerated Progress Towards 2010 Vision…

mySAP ERP 2005 generally available
mySAP ERP evolves into a BPP

2006

Launch
Strategic
Products

Duet, SAP xApps
SAP Analytics, BI-Accelerator
SAP CRM On-Demand
First pilot customer testing of
enhanced midmarket portfolio

2007

mySAP Business Suite on a BPP

ESOA Roadmap
Completed

Enhanced Midmarket portfolio available

© SAP AG 2006, Title of Presentation / Speaker Name / 3

3

…And Doubling of Addressable Market by 2010

mySAP Business Suite on a BPP
Enhanced midmarket portfolio available

…

2007

Enterprise
Service-Oriented
Architecture
Established

…

~20% market share, $15bn in product
revenue (CAGR 2007-2010 of 15%)

2010

Addressable
Market $75bn

~100,000 customers
~2/3 of installed base on Enterprise SOA
~50% of SAP‘s software revenues
from new products
~40-45% of SAP‘s order entry from
midmarket

© SAP AG 2006, Title of Presentation / Speaker Name / 4

4

Comprehensive Competitive Environment
SaaS

Service
Provider

The White Space
Consulting
Custom Develop.

SaaS

Embedded
Software

Web
Platform

Enterprise
Application Software

Middleware
Infrastructure

© SAP AG 2006, Global Service & Support Manager Info Session, Gerhard Oswald / 5

5

Personal
Productivity

Information
Worker /
Analytics

Product
Data Mgmt

Engineering

Core

Web 2.0

Oracle – Building Blocks
Oracle Building Blocks

Source: SSM
© SAP AG 2006, Oracle Strategy Review / Nov 21, 2006 / T. Ziemen / 6

6

Oracle – Complete Stack

Source: SSM
© SAP AG 2006, Oracle Strategy Review / Nov 21, 2006 / T. Ziemen / 7

7

Chronology of Oracle’s Growth by Acquisition Strategy
2005
Jan

Feb

PeopleSoft/
JD Edwards
($ 10.3B)

Mar

Apr

Retek Oblix
($ 0.7B)

Mai

Jun

TripleHop

Jul

Aug

Sep

Oct

ProfitLogic

TimesTen

i-Flex G-Log Innobase
($ 1.0B)
Context Media

Nov

Thor

Dec

TempoSoft

OctetString

2006
Jan

Feb

Mar

Apr

Mai

Siebel HotSip Sleepycat Net4Call
($ 5.9B)
Portal
360Commerce
Software

Jun

Jul

Oct

Nov

Sigma Dynamics Sunopsis

Demantra

Aug

Sep

Stellent

Telephony@Work

2005 Acquisitions

Context Media: Enterprise content integration software
G-Log: Logistics management
i-Flex: Banking
Innobase: Open source database
Oblix: Identity management
OctetString: Identity management
PeopleSoft/JD Edwards: Enterprise applications
ProfitLogic: Retail
Retek: Retail
TempoSoft: Retail
Thor: Identity management
TimesTen: Real time data management software
TripleHop: Enterprise search products and technology

Since January 2005, Oracle has made more than
20 acquisitions, totaling approx. US$ 21B

MetaSolv

Dec

SPL

2006 Acquisitions
Demantra: SCP
Portal Software, HotSip and Net4Call: Telecom software
Siebel: CRM
Sigma Dynamics: Real-time predictive analytics technology
Sleepycat: Open Source DB
Telephony@Work: Telecom software
360Commerce: Retail
Sunopsis: Data integration
MetaSolv Software: OSS service fulfillment, media & communication
Stellent: Enterprise content management software
SPL: Utilities & tax management software

„Oracle would have to spend an est. $17B on acquisitions to
generate a sustained EPS CAGR of 20% over the next three
years (2007-2009) “ BernsteinResearch, Oct16, 2006

© SAP AG 2006, Oracle Strategy Review / Nov 21, 2006 / T. Ziemen / 8

8

Financial Performance – SAP vs. Oracle (1/2)
Q1/FY07

YoY R4Q(Q2/06-Q1/07)

in US$ millions

Applications
Database & Middleware

Maintenance
–
–

Applications
Database & Middleware

Services
Consulting
Training
On Demand
Total

Product
Software
Maintenance

+29%
+28%

12,407
5,079

+21%
+22%

228
576

+80%
+15%

1,404
3,675

+66%
+11%

1,941

+18%

7,328

+20%

700
1,241)

+16%
+20%

2,738
4,590

+39%
+11%

846
633
88
125

+33%
+33%
+19%
+49%

3,049
2,272
339
438

+20%
+17%
+16%
+40%

3,591

+30%

15,456

+21%

Q3/2006

–
–

YoY R4Q(Q4/05-Q3/06)

YoY

in US$ millions*

1,994
875
1,119

+13%
+17%
+10%

7,956
3,699
4,257

+14%
+16%
+13%

827
712
115

+8%
+8%
+8%

3,308
2,847
461

+11%
+10%
+15%

Other

21

-11%

88

-9%

Total

2,842

+11%

11,352

+13%

Services
Consulting
Training

Rolling 4 Quarters

YoY

in US$ millions

2,745
804

in US$ millions*

Product
Software

47%
(-1)

33%
(+1)

3% 2%

15%

Software

Maintenance

Consulting

Training

On Demand

37%
(-1)

33%
(+1)

1% 4%
Software
Consulting
Other

25%
Maintenance
Training

Source: SSM

* SAP revenues in US$ based on quarter end exchange rates
© SAP AG 2006, Oracle Strategy Review / Nov 21, 2006 / T. Ziemen / 9

9

Relative Size – Total Software Revenue
(rolling 4 quarters; based on application software revenues)
70%
60%
50%

51%

51%

53%

53%

54%

55%

57%

55%

58%

60%

60.4%

61.6% 61.4%

SAP1)
59.5%

50%

40%

33
PP

34
PP

37
PP

ORCL acquires
SEBL

30%

20%

ORCL acquires
PSFT &
RETK

PSFT acquires
JDEC

26.5%

25.3%
16.4%

PSFT

10%

27.4%

MSFT1)2)

13.2% 13.3% 13.1% 13.1%
SEBL
8.8%

JDEC
RETK

0%
Q2 02Q1 03

Q3 02Q2 03

Q4 02Q3 03

Q1 03Q4 03

Q2 03Q1 04

Q3 03Q2 04

Q4 03Q3 04

Q1 04Q4 04

Q2 04Q1 05

Q3 04Q2 05

Q4 04Q3 05

Q1 05Q4 05

12th

Q2 05Q1 06

Source: CMI Analysis based on Company Data and Financial Analysts Estimates as of October
2006
1) Forecast by Financial Analysts (MSFT) and SAP internal estimates
2) Fiscal year is not calendar year - Comparison based on most recent quarter (e.g. SAP Q1 vs. Oracle Q3)
© SAP AG 2006, Global Service & Support Manager Info Session, G. Oswald / 10

10

ORCL2)

Q3 05Q2 06

Q4 05Q3 06E

New Application License Revenue – SAP vs. Oracle
New Application License Revenue (in US$ Mn*)
Oracle***

SAP

SAP as % of Oracle

3,961
559%
525%

3,365
488%

370%
376%

384%
1,658

1,396

238%

268%
1,478

199%
895
710

696

563
350
152
-36% 17%

Q1/05
Q3/05

127

639
266

123%
789

269

228

57% 16%

9% 20%

52% 18%

28% 18%

77% 14%

83% 13%

Q2/05
Q4/05

Q3/05
Q1/06

Q4/05
Q2/06

2005

Q1/06
Q3/06

Q2/06
Q4/06

* SAP revenues in US$ based on quarter end exchange rates
** Estimates based on analyst reports from CIBC, Jefferies & Company, Morgan Stanley
*** Closest respective quarters (Oracle Fiscal Year ends May 31)
© SAP AG 2005, Global Service & Support Info Session, G. Oswald / 11

11

875

641

80% 23%

Q3/06
Q1/07

340
28% 19%

65% 18%

Q4/06E**
Q2/07

2006E**

Source: SSM

Oracle Q2/FY2007 Results – New Application Licenses
On December 18, Oracle reported new application license revenue of US$ 340M for
Q2/FY2007 which is an increase of 28% over Q2/FY2006
Oracle’s application growth is overstated since the comparison does not consider the
independent results for Siebel in Q2/FY2006 (-11% adjusted growth instead of +28%)
500

US$ Mn

400

383

300

Siebel
117

Organic Growth
Reported Growth
Adjusted Growth

∆=-1

1%
28 %

+
∆=
∆=+1%

340
Siebel
72

200

100

0

Oracle
(incl. PSFT, Retek)
266

Oracle
(incl. PSFT, Retek)
268

Q2/FY2006

Q2/FY2007

© SAP AG 2005, Global Service & Support Info Session, G. Oswald / 12

12

“Let’s beat the enemy” – SAP vs. Oracle

“

“Let me give you a word of warning and it's a very serious
word of warning. We have just won a few battles. This is
the beginning of the war, not the end of the war. You
have to assume my dear colleagues that we are dealing
with a very shrewd, very smart, very tough and a very
rich competitor. And it will not simply sit there and simply
accept the fact that we are going to take every day market
share away from them (…) We are just at the letter A and
we have many more letters to work our way through (…) So
I’m calling on everyone: the war is out there, we are dealing
with a very mean, very tough competitor and on behalf of
everyone who fights these people every day I'm calling
upon everyone: let’s act as a united SAP so that we can
beat the enemy (…)”
Leo Apotheker
Member of the SAP AG Executive Board
SAP AG

Source: SSM
© SAP AG 2006, Oracle Strategy Review / Nov 21, 2006 / T. Ziemen / 13

13

Battleground: Oracle vs. SAP
Maintenance (Installed Base)
Oracle Weapons

SAP Weapons

Defensive

Offensive

Offensive

• Applications Unlimited +

• Safe Passage +

• OFF SAP Program o

• Lifetime Support +

• TomorrowNow ++

• Systime -

• MAR Program +

+

o

SAP Weapons

Defensive
• Maintenance Strategy +

SAP Weapons

Defensive

Defensive
• Ecoystem (SDN) +

• Industry Solutions ++

• Netweaver o

Offensive
• ESOA Roadmap +
• Midmarket Solutions/A1S +

Oracle Weapons
Defensive

Offensive

SAP

+
o

o

+

Oracle

• Best of breed (on OFM) +

none

Oracle Weapons
Defensive
• Ecoystem (ODN) ++

• Oracle Accelerate o

• Technology Bundles +

Offensive

Offensive

• OnDemand (e.g. Siebel) +

• Fusion MW ++

o

• Fusion Apps +

o

Oracle Weapons

SAP Weapons

Defensive
• 11g Grid computing ++

Offensive
• Linux Support o

• Technology Bundles +
© SAP AG 2006, Oracle Strategy Review / Nov 21, 2006 / T. Ziemen / 14

Offensive
• Push DB2 and SQL Server +
• Project „No Database“ ++

Database

14

Defensive
none

Middleware

(New) Applications

• Best of suite ++

Safe Passage Update
January 11, 2007

Thomas Ziemen
Service Solution Management
SAP AG

15

Safe Passage Offering
Safe Passage is a smooth way consisting of license
credit, maintenance and productized migration support
for constrained Oracle customers who want to escape
uncertain waters and enter the safe haven of SAP.
Applications
Best-in-class mySAP business software applications
Integration of your IT landscape (SAP NetWeaver)
Recognition of your previous investments (up to 75% license credit) in
Oracle, PSFT, JDE, Siebel or Retek
Migration Services
A flexible roadmap to the future, founded on SAP NetWeaver*
Assessment of current Oracle, PSFT, JDE, Siebel or Retek implementation
Free of charge migration tools and predefined content provided by SAP
and Partners
Maintenance
Support for PSFT, JDE or Siebel via SAP subsidiary, TomorrowNow
50% savings on current support and maintenance fees
* included with your mySAP license
Source: SSM
© SAP AG 2006, Title of Presentation / Speaker Name / 16

16

Safe Passage Offering – Extended in the Course of Time
SAP Apps

2005

PeopleSoft,
JD Edwards

Jan

Retek

TomorrowNow
PeopleSoft,
JD Edwards

May

Sep

Siebel

Oct

2006
Oracle EBS*

Jan

May

Baan
(EMEA C only)

Siebel

Dec

2007
Jan

Apr
* Not officially announced, but part of Safe Passage Program according to Apollo
** Not finally decided yet (depending on demand development in EMEA C)
*** Not decided yet (Board approval needed)
© SAP AG 2005, Global Service & Support Info Session, G. Oswald / 17

17

Baan**
Oracle EBS***

What is Safe Passage?
A current Oracle, PeopleSoft, JD Edwards, Retek, or Siebel
customer that chooses to either replace their existing
implementation in favor of SAP or defer migration to Oracle
Fusion by purchasing a maintenance contract from
TomorrowNow.

Software Discount:
The customer accepts the license discount from SAP and replaces their
existing PSFT, JDE, Siebel, Retek, or Oracle E-Business implementation

TomorrowNow Maintenance Only:
The customer just purchases a TomorrowNow maintenance contract

Competitive Replacement:
The customer replaces their existing PSFT, JDE, Siebel, Retek, or Oracle
E-Business implementation but the deal is not officially booked as Safe
Passage

© SAP AG 2005, Global Service & Support Info Session, G. Oswald / 18

18

Safe Passage/TomorrowNow – Installed Base
26 Joint Customers

266 Safe Passage
Customers *

216 TomorrowNow
Customers

Characteristics:
Larger customers
Upgrades planned
SAP experience (already
SAP customer, Joint
customers)
“No Oracle”-strategy
Short project cycles
High support risk aversion

Characteristics:
Smaller customers
Not SAP-minded
No SAP experience / history
Running on old releases
(functional gaps)
No upgrades considered
Not decided yet (“Shoppers”)

Status December 31, 2006,
* Safe Passage December deals not included yet
© SAP AG 2005, Global Service & Support Info Session, G. Oswald / 19

19

Review 2006: SAP / TomorrowNow Collaboration

© SAP AG 2006, SBD_Update / Eric Brunelle / 20

20

Safe Passage – Customer Tracking
Customer Tracking, Jan 2007
No.

266

With Messages („Active Installations“)
With Prod. Systems („Live Customers“)
Customer Satisfaction* (n=47)

* CSS 2006, Q18: „Overall Satisfaction with SAP Service & Support“ /
10-point scale (1= very dissatisfied, 10= extremely satisfied)
© SAP AG 2006, Thomas Ziemen, Service Solution Management

21

70 %

168

With Called-Off SAP Installations

100 %

187

Total Number of Safe Passage Customers

% of Total

63 %

135

51 %

8.0 (SAP average: 7.4)

Source: SSM

Outlook 2007: Conversion Program

30% of TomorrowNow customers think
TomorrowNow is a first step on the road to SAP

20% of TomorrowNow customers think SAP is
too big for them as they are smaller companies

50% of TomorrowNow customers are open and
know they will switch somewhere

Source: Assumption from Bob Geib - TomorrowNow
© SAP AG 2006, SBD_Update / Eric Brunelle / 22

22

Convert2Win: Customer Segmentation 2007

TomorrowNow
Installed Base

201 customers (Status: Nov. 2006)

58 customers (Status: Nov. 2006)
TNow/SAP
Joint customers
Step 1: check contract duration
Check Contract
Duration

If contract duration is short, e.g. 1 year, go to Step 2

Step 2: check customer profile
Check
Profile

Release status: is the customer running older releases, e.g. PSFT 7.x?
Mindset: is the customer „SAP-minded“? To be checked w/ TNow

Step 3: engage w/ customer (assumption: 5 to 10 customers)
Engage w/
Customer

Different options available: at customer site, infoday, invitation to Sapphire,
etc.

Customer segmentation to be done in January-February 2007
in collaboration w/ TomorrowNow

© SAP AG 2006, Title of Presentation / Speaker Name / 23

23

Safe Passage Applications – Key Achievements 2006

200

Safe Passage – 2006 Customers
Cumulative Number of Deals 200*

Selected 2006 Customers

74*

150
100
50
0

27

74

126

126

Q1/06
Q2/06
Q3/06
Q4/06
126 Safe Passage deals signed in 2006
(50 Americas, 23 EMEA C, 29 EMEA N, 24 APA)
140 Safe Passage deals signed in 2005
(77 Americas, 17 EMEA C, 28 EMEA N, 18 APA)

* Forecast
Safe Passage – 2006 License Revenue
Cumulated Yearly Net Software Value (in €M)
300*

300

250

114.5*

200
150
100
50
0

185.5
60.6

185.5

94.5

Q1/06
Q2/06
Q3/06
Q4/06
€ 185.5M license volume lost for Oracle in 2006
Approx. € 170.0M license volume lost for Oracle in 2005
* Forecast

© SAP AG 2006, Global Service & Support Manager Info Session, Gerhard Oswald / 24

24

Safe Passage – Customer Analysis by December 31, 2006
Deals by Industry
High Tech

10%
Consumer
Products

Deals by Product Line
Retail

14%

Others

9%

Total
266

18%
4%5% 6%

Professional Services

JD Edwards

Manufacturing

8%
7%
7%
6%
6%

Service Provider

Oil & Gas

33%
PeopleSoft

Public Sector

30%

Total
266
28%

Financials
Pharmaceuticals

Retek

Telecommunications

Deals by Region

Oracle

1% 11%
2%

Baan

Siebel

Deals by Contract Size
€ 0.2M – € 1.0M

EMEA N
57 Deals

Americas
127 Deals

21%
EMEA C
40 Deals

40%

48%

< € 0.2M

Total
266

2 5%

15%

Total
266
3 5%

16%

APA
42 Deals

Avg. Deal Size € 1.5M

© SAP AG 2006, Global Service & Support Manager Info Session, Gerhard Oswald / 25

25

> € 1.0M

Safe Passage – Customer Analysis by December 31, 2006
Retek
1%

Siebel
13%

Deals by Product Line
JD Edwards

33%
PeopleSoft

30.000 Oracle
Application
Customers

JDE
23%

EBS
45%

30%

Total
266
28%

Retek

PSFT
18%

Deals by Region

Oracle EBS

1% 11%
2%

Baan

Siebel

Deals by Contract Size
€ 0.2M – € 1.0M

EMEA N
57 Deals

Americas
127 Deals

21%
EMEA C
40 Deals

40%

48%

< € 0.2M

Total
266

2 5%

15%

Total
266
3 5%

16%

APA
42 Deals

Avg. Deal Size € 1.5M

© SAP AG 2006, Global Service & Support Manager Info Session, Gerhard Oswald / 26

26

> € 1.0M

Baan Competitive Replacement Program
Early References in Belgium and Netherlands

Market Potential
EMEA N
500

EMEA C

1000

N. America

Total
2600

Selected Implementation Partners
1000

100

APA

Target 2006: 10 deals (7 contracts already signed)
Target 2007: 30 deals
Milestones

Maintenance & Migration Services
TomorrowNow
- As of January 1st, 2007
- 3 dedicated headcount out of Amsterdam
- Partner Picolog as subcontractor for second
level support

Launch in EMEA Central in Q3 via Press Release
on September 25, 2006
Marketing campaign in Q4
- Baan customer satisfaction survey via external
tele company
- Baan customers w/ high or medium interest
currently being mailed by SAP

Migration Tools & Content
- Leveraging SAP ADM infrastructure
- First Baan content pack available in December 2006

Customer Infodays
- e.g. Itelligence, w/ 32 Baan customers in Stuttgart
(currently 5 opportunities out of the event)

© SAP AG 2006, Global Service & Support Manager Info Session, Gerhard Oswald / 27

27

Management Summary – TommorowNow
Value
Proposition

SAP View
Hurt Oracle by taking away maintenance revenue
Serves as bridge for future SAP license business for (smaller, not SAP-minded customers)
Customer View
Offer lower priced 24x7 maintenance alternative to PeopleSoft, JD Edwards,
and Siebel customers with 50% savings on current support and maintenance fees
Provide those customers with a choice to migrate to SAP (at their own pace)

TomorrowNow established as cornerstone of the Safe Passage Program

Business
Case
Analysis

Safe Passage pipeline (403 opportunities currently in process), TomorrowNow pipeline (816 open
opportunities), and revenues justify the cost of the acquisition and additional operating expenses
Installed base grown to 216 customers with 228 TomorrowNow customer contracts signed in 2006 (139
new contracts and 89 renewals in 2006; 121 signed in 2005 with 75 new deals and 46 renewals)
In total € 41.4 million reduction of Oracle maintenance revenue since acquisition of TomorrowNow
€ 9.0 million TomorrowNow stand-alone revenue in 2006 (€ 3.5 million in 2005)

Field: Another year needed to finalize global alignment with SAP Sales organization

Lessons
Learned

Marketing: Oracle Disruption Campaign Q3/2006 resulted in high lead success rate for
TomorrowNow, i.e. high return on marketing investments
Oracle Turn up the Heat Campaign resulted in 150+ opportunities for TomorrowNow (17 contracts signed)

F&A: Globalization of business in cooperation with SAP regions is a challenge and was
underestimated as such
Need to actively manage regional shared services for TNow
TomorrowNow is a strategic investment and serves as strategic weapon against Oracle:

Conclusion

Take away maintenance revenue from Oracle
Create pre-pipeline of future SAP customers

TomorrowNow still operates at a loss in 2006 but Break-even is expected for 2008
after completion of globalization and business scoping in 2007 (in line with board
assumption to become a profitable business within 2-3 years after acquisition)

© SAP AG 2006, TNow Acquisition Monitoring, 28

SAP STRICTLY CONFIDENTIAL

28

KPI Framework – TomorrowNow (Status December 31, 2006)
Cumulated Number of New Customers & Client
Contracts in 2006

TomorrowNow Opportunities (in CoD)
24

2005: 75 new customer contracts
121 total customer contracts

9
228
Booked

54

Q1/06

Lost

816

91

27 40

Won
In Process
Discontinued

74

228
142
97

Q2/06

Q3/06

New Customer Contracts

40,0 41,4

32,7
21,4

Q1/06

12,2
5,5

8,6

Q2/06

Q3/06

Multi-Year Contracts included

15,0 18,0

13,6

Q1/06

Q2/06

6,1

Q3/06

TR*IM Index 107
Overall Satisfaction 8.5
Acc. Mgmt: 8.7
S&S: 8.8
95% as References
97% likely Renewal rate

9,0

Q4/06
Cost

© SAP AG 2006, TNow Acquisition Monitoring, 29

Q3/06

Customer Retention

20,9

3,8

Q2/06

28,0 32,3

Q4/06
Plan

* Since Acquisition (doubled contract volume of newly signed TomorrowNow deals)

14,6
1,9

23,0

€ 10.8M maintenance volume lost for Oracle in 2005

Multi-Year Contracts excluded

9,9

19,0

Q1/06

Q4/06

Cost vs. Revenue in 2006 (Cumulative in €M)

4,8

Q4/06

Total Customer Contracts

Cumulated* Maintenance Volume
Taken Away From Oracle in 2006 (in €M)

2006 Contract Volume (in €M)

6,4 3,1

139

Revenue

SAP STRICTLY CONFIDENTIAL

29

Actual