Agenda & Briefing November 30th, 2012 2:00 - 3:15 PM EST 1:1 with Forbes Magazine (Mexico Edition) Format: In person Interview (30 minutes interview + 15 minutes photo shoot) SAP Office @ 95 Morton St. 2nd Floor. Room: TBD Host: Jim Dever / Sybelle D’Marco, Global Communications Details Topics for Discussion Current financial situation of SAP Global and Mexico The importance of SAP Mexico and Central America to SAP SAP’s 2013 business strategy SAP’s new business proposition to the large enterprise and the SME markets in Mexico (technology, innovation, mobile, cloud computing) Innovation as part of theSAP strategy Importance of the SAP Forum event for the Mexican market Possible Questions Your most current results are Q3. Can you comment on them highlighting Mexico and Central America? What are the company’s growth drivers? Does SAP consider Mexico an emerging market or a mature economy? What would Mexico need in order to join the BRIC countries? It appears that the global economic crisis has not had a major impact in Mexico. How has SAP Mexico taken advantage of this situation? How do you expect SAP to close the year 2012? What do you foresee for SAP in 2013? How does SAP expect to grow in terms of market share and sales within the next five years? What is the new strategy that will drive your business forward? On February 6th and 7th you are attending the SAP Forum in Mexico. What willyour main message be for the 10,000+ people that are expected to attend? Media profile Jornalist Profile Luis Francisco Rodriguez is the Editor of Forbes Magazine Mexico, which was recently launched. . Previously, Mungia was Editor in Chief of the Diario de Mexico USA, a publication that offers local news for Hispanic communities within the Unites States. Mungia has also held positions in Digital Marketing, Branding and as Communications Consultant for Danilo Black in Monterrey, Mexico. He is a graduate from one of the most prestigious journalist universities in Mexico, and holds a Masters from the Monterrey Technological Institute, ITSEM. Luis is fluent in Englishand is very familiar with the IT industry. Note: This interview has a potential to be a cover story for the February edition; just in time for the SAP Forum Mexico (Feb. 7-8) 2 | Briefing Document, October 2012 About Forbes Mexico The most renowned international publication in the world of business, now comes to Mexico in November of 2012. The publication will be focused on providing more timely analysis of investments, business, technology, and lifestyle. Profiles of directors and the most profitable companies in Mexico, known as the renowned Forbes list, will also be included. Key Messages In Q3 SAP Mexico and Central America grew 51%. This is a historic high, following eight consecutive quarters of revenue growth that surpassed goals. SAP Mexico and Central America now rank tenth in the top ten subsidiaries of SAP AG. Central America has become a key region for this subsidiary, with new offices opening this year in Costa Rica, Guatemala and Panama. The SME segment is a significant opportunity for Mexico, and is 90% of its customer base. SAP SME growth in Q3 reached 33%. Indirect sales grew 103% during Q3, partly as a result of the specialization programs that commenced at the beginning of the year. B1, a huge component of SME sales, grew 38% during Q3. One of its most representative success cases is Reprico, a pharmaceutical company from Panama that implemented the first HANA for B1 solution in Latin America. Mexico is a pioneer market in the adoption of innovative technology. 71% of SAP Mexico sales YTD come from Innovation. The SAP Innovation Portfolio continues to mature in Mexico and Central America. Mobility grew 170%, Analytics 37%, and Database & Technology 64%. Customer success stories include ICA, a leading construction company in Mexico and Latin America. SAP understood ICA’s business strategy and sold them a complete innovative package with ERP, Mobility, LOB, BA, Database & Technology, HANA and SuccessFactors; integrated on a single platform. Customer CEMEX also implemented HANA, in order to obtain real time information. Mexico was responsible for the largest HANA sale in Latin America during 2011. Cloud Computing has begun to consolidate in terms of adoption in Mexico. The subsidiary was one of the first to close a SuccessFactors deal with Estafeta, one of the most important shipping companies in the country. The Banking sector is also an important Industry for SAP, since it has experienced sustained triple digit growth, and achieved 121% growth in Q3. Customers include Banco Compartamos, the largest microfinance bank in Latin America, which implemented CRM for Banking solutions to improve its relationship with customers, and BICSA, the International Bank of Costa Rica, which implemented a Business All in One solution, to improve its operations. Financial institutions like Banco Industrial de Guatemala, Banco de Desarrollo Rural and BAC Credomatic, all implemented e-Banking and mWallet solutions, to offer better customer service based on a mobile services platform. The SAP Forum in Mexico is one of the most important business events in Latin America promoting discussion among businesses, professionals, business partners and the entire SAP ecosystem of Mexico. The 2012 edition welcomed close to 8,000 participants, over 50 customers, 64 sponsors and business partners. For the 2013 edition 10,000+ participants are expected. About SAP Mexico and Central America 18 years of operations in the Mexican market 2 Offices: Mexico City and Monterrey + 3 in CA: Costa Rica, Guatemala and Panama 1 Innovation Center in Mexico City inaugurated in February 2012 4,200 Customers 2|P a g e 3 | Briefing Document, October 2012 488 Employees (121 2012 Hires) +300 Services, implementation and channels partners + 22,000 SAP consultants in the region (certified and not certified) 35 SAP Business One channel partners SAP Mexico and Central America – Q3 2012 Performance Industries growth Q3 2012 Engineering y Construction 494%% Consumer Product: 258% Mill products: 319% Oil & Gas: 379% Manufacture: 40% Banking: 100% Mexico Scenario Opportunities 4,000 million dollar investment on the Mining sector in 2012 Automotive industries are expected to be key for Mexico’s growth SMEs are experiencing their most important moment in the history of Mexico Spanish banks are responsible for more than 40% of total consumer credit in Mexico Economic and Social Mexico stands 75th in the ranking of 183 economies on the ease of starting a business. Mexico City is the second largest city in the world Opening up the oil sector may boost gross domestic product by as much as 0.8 percent a year, according to research firm Capital Economics. Combined with the discovery of significant amounts of shale gas in northern Mexico, tapping into deep-water oil could create an era of low energy costs for the country Mexico has a free market economy in the trillion dollar class. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports 3|P a g e 4 | Briefing Document, October 2012 Politics July 1st was one of most important election days in the history of Mexico: PAN (the National Action Party) lost the presidential election to PRI (Institutional Revolutionary Party) after 12 years in power. Previously, PRI had been in power for 71 years, until PAN won the elections in 2000. Enrique Peña Nieto will become the new President of Mexico on December 5th, 2012. 4|P a g e