EMPLOYEES

HEADCOUNT INCREASE

Headcount Grows with Business Success Reflecting our success in business, we hired many highly qualified professionals over the course of 2006, thus creating a foundation for future success and continued growth. Plans for 2006 called for some 3,500 new jobs to be created, and in fact we filled 3,482 new positions during the year. At the end of 2006, we had 39,355 employees worldwide (2005: 35,873; 2004: 32,205), of whom 14,214 were located in Germany (2005: 13,916; 2004: 13,525). All headcount figures are measured in full-time equivalents.

The average age of our employees was approximately 37; the average length of service was around 5.3 years. About 30% of our employees were women.

We have altered the way we present our employee figures for internal and external reporting purposes to better reflect the way in which expenses are shown in our statements of income and to improve the transparency of our reports. The change does not affect the total number of employees reported, but it does alter their distribution among the various areas. Our internal and external reporting until December 31, 2005 grouped employees by business area or function. The new breakdown, described below, has applied since January 1, 2006. Figures for previous years are stated in terms of the new breakdown.

Product headcount, in which we include support and customer-specific development, grew 20% to 5,368 reflecting increased activity (2005: 4,460; 2004: 3,647). R&D headcount grew 16% to 11,801 (2005: 10,215; 2004: 8,744). Service counted 11,518 employees at the end of 2006 – an increase of 1% (2005: 11,430; 2004: 11,114). Sales and marketing had 7,082 employees (2005: 6,426; 2004: 5,721). This was a rise of 10%. Finance and administration headcount increased 9% to 2,472 full-time-equivalent positions (2005: 2,261; 2004: 1,937). Our infrastructure employees, who provide IT and facility management services, numbered 1,114, a rise of 3% (2005: 1,081; 2004: 1,042).

The region in which we employ most people (57%) is the EMEA region, while 23% of our employees are in the Americas region, and 20% work in the Asia Pacific Japan region. The percentage increases were 16% in the Americas region, 3% in the EMEA region, and 26% in the Asia Pacific Japan region. Acquisitions accounted for 402 of our 1,272 new positions in the Americas region in 2006. We filled 631 new positions in the EMEA region. Of the 1,579 new positions in the Asia Pacific Japan region, most were in India (1,133) and China (374).

We employ people of more than 100 different nationalities and embrace diversity, for example in respect of cultural and ethnic origin, race, gender, nationality, and age as a valuable resource. Our Global Diversity Office is charged with ensuring that our approach remains positive and that every employee’s contribution to the success of our business is properly recognized. In 2006, we trained more than 2,600 managers of multinational teams in intercultural skills. We also held several single-sex workshops at which women and men explored and learned to value gender differences. Approximately 90% of the men and women who took part commented favorably on the events afterwards.

WORKING FOR SAP