DEAR SHAREHOLDERS,
The global economic and political situation was the
main influencing factor for SAP in 2003. Companies
were clearly still reluctant to invest, with further pressure
coming from the wave of consolidation in the
software industry. Furthermore, all the major currencies,
especially the U.S. dollar, fell against the euro.
This had a significant effect on SAP’s revenue and, to a lesser
extent, on expenses. Nominally, total revenue therefore
declined 5% from the previous year. Excluding the currency
effects however, SAP was able to increase its revenues 3% from
the previous year, gaining market share in all its key market
segments. SAP increased efficiency levels in 2003 and made the
cost savings it had planned. Overall, SAP achieved positive
results: Earnings per share rose significantly even after adjustment
for unusual effects.
Open, trusting cooperation between the
Supervisory and Executive Boards is vital for SAP to overcome
current and future challenges. Throughout 2003, the Supervisory
and Executive Boards cooperated not just at the monitoring
and supervision levels, as required by law and SAP’s
Articles of Incorporation: The Executive Board also directly
involved the Supervisory Board in regular, detailed discussions
about all key matters related to SAP’s orientation and strategy.
Between Supervisory Board meetings, the Executive Board also
kept the chairperson of the Supervisory Board informed of all
significant decisions and developments and of the current state
of operations.
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