The document discusses the finance transformation at SAP and what constitutes the "new normal" for finance departments. It outlines increased pressures from economic challenges, regulation, disruptive technology, and globalization that require finance to improve strategy and performance management, risk compliance, and efficiency. SAP's objectives are to increase customer success, foster employee motivation, deliver on a growth objective of 20 billion euros in revenue by 2015, and achieve a 35% non-IFRS operating margin. It describes initiatives across customer centricity, operational excellence, and people to help SAP achieve these goals.

1. Frederic Arrouays
CFO EMEA Emerging Markets
SAP
The Finance Transformation at SAP

2. Regulators
Rise to
XBRL
What Constitutes the “New Normal”?

3. What Constitutes the “New Normal”?
Increased Market Volatility

4. What Constitutes the “New Normal”?
Increased Focused on Risk

5. What Constitutes the “New Normal”?
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Increased Economic Pressures

6. What Constitutes the “New Normal”?
Increased Regulation

7. What Constitutes the “New Normal”?
Increased Globalization

8. What Constitutes the “New Normal”?
Increase in Disruptive Technology

9. New Normal Translates into New Pressures on Finance
Strategy & Performance Risk & Compliance Efficiency in Finance
■ Stakeholder expectations for ■ Complex finance and ■ Need for more efficient planning,
more effective strategy operational regulations budgeting and forecasting and
execution financial close processes
■ Increased stakeholder demand
■ CFO Chief Performance Officer for effective risk management ■ Inefficiency in invoicing,
processes and tools collections, credit management
■ Better understanding of drivers
of costs and profit across the ■ Importance of visibility of cash ■ Increase service quality to LoBs
business position and need to hedge risk at lower cost
■ Scalability – eg local vs. SSCs

10. SAP’s Objectives for 2015
Increase Customer Success Foster Employee Motivation Deliver on our Deliver 35%
by bringing our people closer to our by empowering people and Growth Objective. non-IFRS Operating Margin
customers. executing our people strategy. Aim At least 20B Euro by 2015. Simplify SAP and capture
Goal is to reach1 Billion people for 82% employee engagement revenue by 2015 efficiency gains
using our software in 2015 index
Customer Success Employee Motivation Growth Margin
Results 2010: 68% Results 2010: €12,5bn Results 2010: 31.5%

12. How SAP is going to reach €20bn
revenues by 2015
Innovating beyond the classical
ERP

13. How SAP is going to reach 35%
margin by 2015
Growing costs at a lower rate than
revenue

14. The dual role of Finance at SAP

15. Status Quo Result in Our Goals Our Approach
• Lack of one face to the • Customers find it hard Customer Centricity • Simplify our business end-
internal customer to do business with SAP to-end and bring Finance
• Lack of alignment in Global Finance and its customers closer
business processes • No clear priorities together
• High level of non-value • Higher costs compared • Improve our processes
adding activities to world-class Operational Excellence through standardization,
• Silo mentality within Global benchmark automation, simplification,
Finance and across LOB increase of shared services
and extensive use of our
• Internal complexity
own software
• Lack of E2E transparency & People Agenda
• Invest in our people and
accountability
advise on and support
organizational change
We evolved into the current state not by design Leverage our own technology according to our
but by adapting to change philosophy of standardization
Strengthen Stewardship Role

16. Portofolio of Initiatives – 11 Workstreams
Customer Centricity Operational Excellence People Agenda
Proactive Risk Management Improved DSO GFA Academy
Deal Support Order-to-Invoice Communication and
Procure-to-Pay Change Management
New Business Models
Record-to-Report Organizational Model and
Analytics
Design
Planning Shared Delivery

17. FRBT – Selected Activities

18. Deal Support Status

19. Deal Support Status

20. Proactive Risk Management
From Strategy to Execution

23. Mobilizing the Field – Apple Simple, Google Fast

24. SAP runs SAP – Achievements

25. Shared Delivery – Evolution of Shared Services Centres

26. SSC Landscape
As of Today

27. Further
Evolution

28. GFA Academy – House of Learning / End State Vision 2015

29. GFA Academy – The Roadmap

31. My
Key
Learnings

32. Thank You!
Your Questions?