ORGANIZATION FOLLOWS STRATEGY

To ensure we have the best organization structure in place to accelerate our growth, in February 2005 we have realigned the responsibilities of the SAP Executive Board members along a solution value chain. The value chain begins with a new idea or breakthrough innovation, followed by product development; the production process and quality assurance; service, support, and maintenance; marketing, sales, training, and consulting; and finally implementation by the customer. The new structure will improve the speed of decision making and focus within each Board area. With the structure, SAP has all the ingredients in place for successful execution of our strategy: the right technology, the right product portfolio, and the right organization.

INVESTING IN SUCCESS

With a clear commitment to our customers, we are continuing our long history of leadership and growth in shaping the future of IT.

SAP’s long-term goal is to build on this leadership and, together with our customers, to redefine the technology landscape with our powerful vision of a service-enabled business process platform. Our investment in this platform, the culmination of our Enterprise Services Architecture strategy, enhances our competitive position and opens up new opportunities for revenue and profit growth. 2005 will be a year of investment in the success of this company. Without our tireless employees, however, we would not be where we are today. We would like to thank them for their contribution and extreme dedication.

This is truly an exciting time to be leading such a dynamic company and I am pleased to share our continued success with you.

Sincerely,



Henning Kagermann
Chairman and CEO, SAP AG