Miami, April, 2011 BRAZIL COUNTRY PROFILE DEMOGRAPHY: Population (comparison to the world) Brasil 190.732.694 pessoas Mundo ~ 7 bilhões de pessoas Population growth rate 2,89% GDP in total (comparison to the world) R$ 3,675 trillion GDP real growth rate 7.7% Inflation rate 5,91% (Source: IBGE) ECONOMY: (Source: IBGE and Folha de S. Paulo) GOVERNMENT AND ADMINISTRATION: Government Type Federative republic President Dilma Rousseff (first woman President) Vice-President Michel Temer Last election results In November, 2010 - Dilma Roussef (Ex-president Lula party – PT) has competed against José Serra (PSDB party, from former president Fernando Henrique Cardoso) and Marina Silva (PV party, with Environment and Social Responsibility focus), among other candidates with smaller representation. Relevant public authorities Minister of Finance: Guido Mantega Minister for Institutional Security: Nelson Jobim Minister of Communication: Helena Chagas Minister of Science and Technology: Aloizio Mercadante CULTURAL BACKGROUND DEMOGRAPHY: Religious Habits – high level of diversity with predominance to Christians (Catholics and Protestants). Brazil has the 2nd largest Jewish community worldwide, behind New York (USA). With its estimated 190 million inhabitants, Brazil has the largest population in Latin America and ranks fifth in the world. The majority of people live in the south-central area, which includes the industrial cities of São Paulo, Rio de Janeiro and Belo Horizonte. Urban growth has been rapid; by 2005, 81% of the total population was living in urban areas. This growth has aided economic development but also has created serious social, security, environmental, and political problems for major cities. Five must-knows about modern life, cultural and religious habits Six major groups make up the Brazilian population: the Portuguese, who colonized Brazil in the 16th century; Africans, brought to Brazil as slaves; various other European, Middle Eastern, and Asian immigrant groups who have settled in Brazil since the mid-19th century; and indigenous people of Tupi and Guarani language stock. Intermarriage between the Portuguese and indigenous people or slaves was common. Although the major European ethnic stock of Brazil was originally Portuguese, subsequent waves of immigration have contributed to a diverse ethnic and cultural heritage. Natural resources: Iron ore, manganese, bauxite, nickel, uranium, gemstones, oil, wood, and aluminum. Brazil has 14% of the world's renewable fresh water. Agriculture (10% of GDP): Products--coffee, soybeans, sugarcane, cocoa, rice, livestock, corn, oranges, cotton, wheat, and tobacco. Industry (39% of GDP): Types--steel, commercial aircraft, chemicals, petrochemicals, footwear, machinery, motors, vehicles, auto parts, consumer durables, cement, and lumber. Services (51% of GDP): Types--mail, telecommunications, banking, energy, commerce and computing SAP IN THE COUNTRY REGIONAL OVERVIEW: Date operations started SAP Brasil - 1996 SAP Labs Latin America - 2006 SAP sites in the country SAP Brasil - headquarters in São Paulo-SP, and offices in Rio de Janeiro-RJ and Belo Horizonte-MG SAP Labs Latin America – São Leopoldo-RS Number of Employees SAP Brasil = more than 800 employees SAP Labs Latin America = more than 350 employees President: SAP Brasil - Luís César Verdi SAP Labs Latin America - Erwin Rezelman Vice- Presidents: SAP Brasil - André Petroucic, PI+Volume+BA&T; Eduardo Strazzeri, TA+SI; Silmar El-Beck, Sustainability and New Business; SAP Labs Latin America - Dirk Wagener, Customized Solutions Development SAP Management Team in the Country Directors: SAP Brasil Guilherme Bujes - Vendas para Bancos e Seguradoras Ricardo Carlotto – Vendas para Negócios Analíticos e Tecnologia Valdemir Marques - Vendas para Setor Público Alejandro Erro - Vendas para Utilities Ricardo Medina - Vendas para Varejo Eurico Spínola - Diretor de Vendas Adjalmo Grando - Serviços de Educação Carlos Guimarães - Vendas de Soluções Analíticas Gustavo Amorim –Marketing Humberto Vieites - Soluções de Vendas&Ecossistema e Partner Group Brazil Fernando Corbi - EP&G Sérgio Camorcio - Canais Alexandra Munakata - Suporte Marcelo Moscato - Vendas de Manutenção América Latina Paula Jácomo –Recursos Humanos Alberto Oppenheimer –Pré-Vendas e Engenharia de Valor Alexandre Carvalhal - Finanças Marcelo Piquet - Consultoria e Educação Cristiana Brito –Comunicação SAP Brasil = 3rd in global ranking worldwide, in software revenue – behind USA and Germany (FY 2010). This position was expected to 2012. Software Revenue and SSRS (also any other relevant #s like LE or SME or BU increases) FY 2010 vs FY 2009, currency in euros: SW Rev. Growth = 91% SSRS Rev. Growth = 51% SME SW Rev. Growth = 82% LE SW Rev. Growth = 93% LE Comprised about x% of our Rev. = 84% SME Comprised about x% of our Rev. = 16% Business User Growth = 104% Field Services Core Rev. = 23% Q1 2011 vs Q1 2010: SW Rev. Growth = (-16%) SSRS Rev. Growth = 13% SME SW Rev. Growth = (-2%) LE SW Rev. Growth = (-18%) BA & T Rev. growth = (-40%) LE Comprised 85% of our Rev. = xx% SME Comprised about 15% of our Rev. = xx% Field Services Core Rev. = 34% Total of 60 new customers in Q1/2011 (359 new customers in FY 2010) About 2.872 customers in Brazil (until Q1 2011 end) SAP Market share and main competitors Fundação Getúlio Vargas (FGV) - its annual research on market share for tech companies was announced in mid-April. The report positions SAP as one of the three leaders of Management Software market. Together, SAP, Oracle and Totvs have 82% of market share. Totvs –they recently published that Gartner named them #1 in Market share again in Brazil with close to 49% market share (and SAP has around 30%). Gartner also said they were #1 in all of LATAM (this is contradictory to IDC reports). Oracle - in Brazil it is placed in 3rd, behind Totvs and SAP, according to FGV research in mid-April 2011. SAP Ecosystem (Partner and Channel #s) List industries where SAP has a strong presence and growth rate from previous quarter or year R&D activities (volume and sites in the country- if applicable) LOCAL MARKET KEY MESSAGES and talking points (top 5) Around 110 partners and channels Q1 2011 vs Q1 2010 Oil and Gas 16% growth Automotive 800% growth Retail 900% growth Banking 200% growth SAP Labs Latin America = new Green and LEED certified building built in June, 2009, in São Leopoldo-RS, after an investment of 14.8 million Euros. CoIL São Paulo = opened in October, 2010. 1 - Experiência global agrega valor à operação da SAP Brasil, que oferece soluções de gestão de negócios para 25 setores e atua com parceiros fortes em todo o território nacional (cerca de 110 empresas) 2 - A SAP hoje vai muito além do ERP. É uma companhia com uma atuação muito mais abrangente, que possui uma linha de soluções e serviços de gestão para as empresas que buscam crescimento e atuação global 3 - A SAP atende 60% do PIB brasileiro com suas soluções – são mais de 1,5 milhão de usuários finais 4 - Responsabilidade Social – Instituto Esperansap, em parceria com a ASUG, desenvolve e administra um programa educacional que promove o desenvolvimento do talento humano por meio da transferência de conhecimento para profissionais com baixos recursos financeiros, buscando aumentar suas possibilidades de permanência e atuação no mercado de trabalho 5 - São mais de 109 mil clientes em mais de 120 países, que abrangem empresas de todos os portes com uma linha abrangente de soluções e um forte ecossistema 6 - Strong ecosystem: around 110 companies (partners and channels); 7 - Total revenue growth – xx% (software, support, subscription, consulting and aducation) Software Revenue vs Total Revenue Growth – xx% 8 - 2010: 2.872 customers 9 - Key Q1 2011 new customers we can mention Banco Intermedium S.A. - Banking CAPEMISA Seguradora de Vida - Banking 10 - Employees FY 2010 SAP Brasil = 754 employees + 57 trainees SAP Labs = 339 employees + 19 trainees INTERNAL CONTACT SAP Diretora de Comunicação Cristiana Brito Tel: +55 (11) 5503-3138 e-mail: [email protected] Contato Agência Diretora de Comunicação Sônia Penteado Tel: +55 (11) 3677-0919 [email protected]