April 18, 2012 Evan Welsh, Director, Global Media Relations,

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Measure Your Media Relations Initiatives to Generate

Director, Global Media Relations, SAP evan.welsh@sap.

SAP Today 55,700+ SAP employees worldwide 120 countries 25 industries 37 languages 75

3 40 Years of Industry Expertise TRADING INDUSTRIES CONSUMER INDUSTRIES FINANCIAL SERVICES PROCESS MANUFACTURING DISCRETE MANUFACTURING SERVICES PUBLIC SERVICES 2011 SAP AG. All rights reserved. / Page 3

6 SAP Helps the World Run Better. 800 mn Product safety solutions from SAP help 800 million consumers live safer and healthier. 30 mn Smart grid solutions from SAP help to enable 30 million households use energy more responsibly. >50 mn HCM solutions from SAP help over 50 million employees work in an attractive and encouraging environment SAP AG. All rights reserved. / Page 6

8 What Are We Measuring? 1. Media a) Volume b) Share of Voice c) Favorability d) Message Penetration e) Quote Penetration f) (+ SAP TV) 2. Social Media a) Share of Voice b) Favorability c) Net Impact Score 3. Industry Analysts a) Share of Voice b) Tonality c) Net Market Impact 4. Employee Communications a) SAP News Readership b) Dialog c) Subscriptions d) Innovations 5. Government Relations & CSR a) Sales Support b) CSR Impact 6. Operations 6. Innovations 7. Reporting 2011 SAP AG. All rights reserved. / Page 8

9 Media How Metrics are Calculated 1. Based on media list = Corporate, IT Trade & Vertical 2. Volume: simple count of number of articles coded 3. Share of Voice: volume divided by total volume of all peers and expressed as % 4. Favorability: impact on readers based on a scale 0 to 100; where 50 is neutral. Takes into account placement, content and bias of article 5. Message penetration: number of articles containing at least one key message divided by total volume, expressed as a percentage 6. Quote penetration: number of articles containing at least one quote from an SAP spokesperson divided by total volume, expressed as a percentage 2011 SAP AG. All rights reserved. / Page 9

10 Global Message Penetration Messaging SAP Peer 1 Peer 2 Total volume of articles Global message penetration* all media (% and volume of articles with at least one target message) 20% (789)** 12% (518) 17% (933) Global messages all competitors 905** Company has right strategy for sustained growth Company is a leading innovator Company is customer-centric Company delivers benefits and value to customers * Global messages ** One article can carry more than one key message. Therefore, the total volume of messages differs from the total volume of articles carrying these messages SAP AG. All rights reserved. / Page 10 Results from our media tracking company CARMA

12 Aligning MR Goals to Business Objectives Achieve customer net promoter score of X.X Achieve employee engagement index of X% Drive +X-X% SSRS growth Expand operating margin by X.X pts Drive external communications to position SAP as the innovator that helps the world run better (brand) Excellence in corporate Media Relations Drive internal communications to build understanding of strategy, goals, progress (inform) - focus on clarity and brevity Drive external communications to position the customer value of SAP solutions (sales support) Excellence in P&S and geography Media Relations Further increase efficiency & effectiveness of communications processes & content creation - incl. synergies w/ other departments 2011 SAP AG. All rights reserved. / Page 12

13 Aligning MR Goals to Business Objectives What are the top business objectives? Customer Success Employee Engagement Growth Margin Expansion Setting MR goals aligned to business objectives Media monitoring: improve results versus 2011 despite budget cuts Successfully execute key SAP media events Measuring Results 1.Achieve X% Share of Voice in business media (2011:X%) 2.Achieve global Message Penetration of X% in business media (2011:X%) 3.Achieve spokesperson Quote Penetration of X% in all media (2011: X%) 4.Secure X# TV interviews (X% increase) on top TV (2011:X#) 5.Reach business media Favorability of X# (2011:X#) How valuable is information that we keep out of the media? Can this be measured? 2011 SAP AG. All rights reserved. / Page 13

14 Reporting Achievements / Results to C-Suite Global media favorability up from 55 (2010) to 60 (2011) Global message penetration 17% (Peer 1 10%) Spokesperson penetration 33% (Peer 1 34%, Peer 2 21%) Share of voice held at 29%. SAPPHIRE-specific news in May generated 378 articles and a 71 rating two points higher than in 2010 Success Factors acquisition generated more than 700 articles, 69% positive, with favorability rating of 61 CEO visibility: Bill McDermott favorability 67 (2010: 58); Jim Hagemann Snabe favorability 69 (2010: 60) Social media: share of voice up from 31% in 2010 to 48% in 2011 and favorability from 55 to 60. Favorability tied with Peer1 and ahead of all other peers SAP TV: total of 132 interviews (TV and radio) broadcast record high 2011 SAP AG. All rights reserved. / Page 14

15 Creating, Leveraging and Measuring Reputation Capital Reputation is emerging as a driving force and differentiator in the success or failure of individuals and companies. Mark Yolton Senior Vice President SAP Community Network 2011 SAP AG. All rights reserved. / Page 15

17 IN A BETTER RUN WORLD, IT DRIVES ECONOMIC OPPORTUNITY FOR ALL PEOPLE SAP s CSR Program helps meet basic human needs, drives education & creates economic opportunity through IT 2011 SAP AG. All rights reserved. / Page 17

Social Investment Vision SAP VISION Help the world run better by improving people s lives CSR FOCUS Enhance education for underserved youth and propel emerging entrepreneurs to foster economic growth

18 Social Investment Vision SAP VISION Help the world run better by improving people s lives CSR FOCUS Enhance education for underserved youth and propel emerging entrepreneurs to foster economic growth GUIDING CSR PRINCIPLES Create social impact. Make strategic social investments that have a lasting benefit on society Leverage our core expertise. Utilize our technology and talent to help find solutions to social issues Generate lasting impact on SAP. Align approach to support our market and people strategy Engage multiple stakeholders. Drive innovation through a multi-faceted dialogue with internal and external stakeholders 2011 SAP AG. All rights reserved. / Page 18

19 Impact Through Social Investment TALENT Activate 100,000 hours with 10% skilled volunteering TECHNOLOGY Enable 1,000 nonprofits with 80% aligned to focus CAPITAL Impact 1,000,000 lives with 80% aligned to focus 2011 SAP AG. All rights reserved. / Page 19

20 Corporate Social Responsibility Outcomes 1. Technology: Enable 1,000 non-profits with 80% aligned to areas of focus 2. Talent: Activate 100,000 employee volunteer hours with 10% skilled volunteering focus 3. Capital: Positively impact 1,000,000 lives with 80% aligned to areas of focus 4. Media (joint KPI): increase volume of CSR-related media coverage by 50% (as our Share of Voice has decreased versus Peer1 in 2011) 2011 SAP AG. All rights reserved. / Page 20

21 In Summary Clearly define what you re measuring How are metrics calculated Moving beyond counting clips message and quote penetration Align MR goals to business objectives Align MR goals to sales/marketing Report agreed upon metrics/results to senior leadership You can measure reputation 2011 SAP AG. All rights reserved. / Page 21