THE SAP GROUP OF COMPANIES

Founded in 1972, SAP is one of the leading international providers of business software and, based on market capitalization, we are the world’s third-largest independent software manufacturer. We have more than 82,000 customers in over 120 countries and employ more than 51,500 people at locations in more than 50 countries in the Europe, Middle East, and Africa (EMEA), Americas, and Asia Pacific Japan (APJ) regions. SAP is headquartered in Walldorf, Germany.

Our core business is selling licenses for software solutions and related support services. Our solutions, which cover standard business applications and technologies as well as custom solutions, are designed to help companies make their business processes more efficient and agile and create sustainable new value. In 2008, the SAP product portfolio featured the following key software applications:

• The SAP Business Suite applications, for large organizations and international corporations. The applications support core business operations ranging from supplier relationships to production to warehouse management, sales, and all administrative functions, through to customer relationships. There are specific solutions for 25 industries, for instance banking, insurance, chemicals, healthcare, retail, consumer products, and the public sector.
• SAP Business All-in-One solutions, the SAP Business ByDesign solution, and the SAP Business One application, which address the needs of small businesses and midsize companies.
• The SAP NetWeaver technology platform, which integrates information and business processes across diverse technologies and organizational structures.
• The SAP BusinessObjects portfolio with solutions for business users, who need software for analyses, reports, and support in rapidly making strategic decisions – and to relieve them of administrative tasks.
• Solutions to help customers realize their sustainability goals.

In addition, we offer consulting, maintenance, and training services for our software solutions. We develop and market our products in close cooperation with independent business partners.

Our management reporting breaks our activities down into three segments: Product, Consulting, and Training. For more information about the segments, see Note 28 in the Notes to the Consolidated Financial Statements section.

All of the information in this Review of Group Operations relates to the situation on December 31, 2008, unless otherwise stated.

The SAP Portfolio

We offer a portfolio of business software, technology, and related services and support to meet the long-term requirements and mission-critical needs of our customers. The main challenges facing our customers are the current global economic recession, hypercompetition, rapidly shifting consumer demand, the impact of international economic integration, the accelerating pace of innovation, and the quest for sustainability. To be equal to these challenges, companies and public administrations must link their strategic planning to their business operations, closing the gap between strategy and execution. This is where information technology solutions can help. They can link decision-making systems to integrated, end-to-end processes that can be easily extended to business partners.