Employees Profit From Success
As in previous years, our employees and managers profited from our business success. For more information about our stock award programs, see the Notes to Consolidated Financial Statements.
Improved Communication With Investors
We always set ourselves the highest objectives for transparency and openness in our continuous dialogue with our shareholders. In more than 600 one-on-one meetings held at SAP, during investor road shows worldwide, and at investor events, we answered institutional investors’ and analysts’ inquiries about our business. We also held telephone conferences and analyst meetings when we published quarterly results. Investor presentations at the SAPPHIRE conferences in Atlanta and Vienna, as well as an SAP Investor Day in St. Leon-Rot, Germany, were other elements of our communication with the financial markets. Our focus topics in 2007 were enterprise SOA, SAP’s growth strategy, solutions for small businesses and midsize companies – especially the SAP Business ByDesign on demand solution, but also business intelligence in relation to our acquisition of Business Objects – and our governance, risk, and compliance solutions.
Improved Service for Individual Investors
We believe all of our investors are entitled to the same information, so all key events at which members of our Executive Board speak to financial analysts and institutions are broadcast live on the Internet, and we post the presentation materials on our site. We are also continuously adding to the wealth of information on our site about SAP and SAP stock. The quarterly SAP Investor magazine is one of the cornerstones of our service for individual investors. Others are the monthly e-mail newsletter, the shareholder hotline, and the e-mail contact at investor@sap.com. Our investor relations team presented information at stock exchanges and shareholder conventions in Germany and, most frequently, the United States. In the United States, we showcased SAP stock to individual investors at several investor conventions run by Better-Investing (National Association of Investors Corporation) and also the American Association of Individual Investors (AAII), as well as at Money Show events. We also spoke with more brokers and financial advisors of financial institutions of all sizes and held quarterly “squawk box” telephone conferences for individual investors.
International Acclaim for Investor Relations Work
As in previous years, our investor relations earned praise in 2007. In the Thomson Extel survey, our team was judged top investor relations team among all European companies in the software and IT field.
As an active member of the German association for investor relations officers and consultants, DIRK, SAP worked for the development and recognition of the profession in Germany.
Cash Earnings According to DVFA/SG
| € millions | 2007 | 2006 |
| Net income | 1,934 | 1,880 |
| Minority interest | 2 | 2 |
| Net income plus minority interest | 1,936 | 1,882 |
| Depreciation and amortization | 271 | 218 |
| Depreciation and amortization reversals | – 2 | – 4 |
| Change in reserves and accrued liabilities | 30 | 54 |
| Change in deferred taxes | 8 | – 2 |
| Other material no-cash expenses and income | – 1 | – 45 |
| Cash earnings according to DVFA/SG | 2,242 | 2,103 |
| Cash earnings per share according to DVFA/SG in € | 1.77 | 1.66 |
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