SAP AG (SAP) | Analysis of Investments

Investment Accounting Policy

Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are not assigned to either of the two other categories and mainly include equity investments and debt investments. If readily determinable from market data, available-for-sale financial assets are measured at fair value, with changes in fair value being reported net of tax in other comprehensive income. Fair value changes are not recognized in profit or loss until the assets are sold or impaired.

Available-for-sale financial assets for which no market price is available and whose fair value cannot be reliably estimated in the absence of an active market are carried at cost less impairment losses.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss comprise only those financial assets that are held for trading, as SAP does not designate financial assets at fair value through profit or loss on initial recognition. This category solely contains embedded and freestanding derivatives with positive fair values, except where hedge accounting is applied. All changes in the fair value of financial assets in this category are immediately recognized in profit or loss.

Source: SAP AG, Annual Report

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

SAP AG, adjustment to Profit Attributable To Owners Of Parent

	12 months ended	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	Profit attributable to owners of parent (as reported)
	Add: Available-for-sale financial assets
	Profit attributable to owners of parent (adjusted)

Adjusted Ratios: Mark to Market Available-for-sale Securities (Summary)

SAP AG, adjusted ratios

		Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	Net Profit Margin
	Reported net profit margin	%	%	%	%	%
	Adjusted net profit margin	%	%	%	%	%
	Return on Equity (ROE)
	Reported ROE	%	%	%	%	%
	Adjusted ROE	%	%	%	%	%
	Return on Assets (ROA)
	Reported ROA	%	%	%	%	%
	Adjusted ROA	%	%	%	%	%

Adjusted Net Profit Margin

		Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	As Reported
	Profit attributable to owners of parent (USD $ in millions, translated from EUR €)
	Revenue (USD $ in millions, translated from EUR €)
	Net profit margin1	%	%	%	%	%
	Adjusted: Mark to Market Available-for-sale Securities
	Adjusted profit attributable to owners of parent (USD $ in millions, translated from EUR €)
	Revenue (USD $ in millions, translated from EUR €)
	Adjusted net profit margin2	%	%	%	%	%

2011 Calculations

Adjusted Return On Equity (ROE)

		Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	As Reported
	Profit attributable to owners of parent (USD $ in millions, translated from EUR €)
	Equity attributable to owners of parent (USD $ in millions, translated from EUR €)
	ROE1	%	%	%	%	%
	Adjusted: Mark to Market Available-for-sale Securities
	Adjusted profit attributable to owners of parent (USD $ in millions, translated from EUR €)
	Equity attributable to owners of parent (USD $ in millions, translated from EUR €)
	Adjusted ROE2	%	%	%	%	%

2011 Calculations

Adjusted Return On Assets (ROA)

		Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	As Reported
	Profit attributable to owners of parent (USD $ in millions, translated from EUR €)
	Total assets (USD $ in millions, translated from EUR €)
	ROA1	%	%	%	%	%
	Adjusted: Mark to Market Available-for-sale Securities
	Adjusted profit attributable to owners of parent (USD $ in millions, translated from EUR €)
	Total assets (USD $ in millions, translated from EUR €)
	Adjusted ROA2	%	%	%	%	%

2011 Calculations