exv99w1
Exhibit 99.1
Invitation to the
Twenty-fourth Annual General Meeting of Shareholders
of SAP AG
of Walldorf, Germany
Securities Identification Number (Wertpapierkennnummer): 716 460
ISIN: DE 000 7 164 600
The shareholders in our Company are hereby invited to attend the twenty-fourth annual General
Meeting of Shareholders at SAP Arena, Xaver-Fuhr-Str. 150, 68163 Mannheim, Germany, on Wednesday,
May 25, 2011, at 10.00 hrs (Central European Summer Time CEST).
Overview of Contents
1. |
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Presentation of the adopted annual financial statements and the approved group financial
statements, the combined management report and group management report of SAP AG, including
the Executive Boards explanatory notes relating to the information provided pursuant to
Sections 289 (4) and (5) and 315 (4) of the German Commercial Code (Handelsgesetzbuch; HGB),
and the Supervisory Boards report, each for fiscal year 2010 |
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2. |
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Resolution on the appropriation of the retained earnings of fiscal year 2010 |
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3. |
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Resolution on the formal approval of the acts of the Executive Board in fiscal year 2010 |
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4. |
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Resolution on the formal approval of the acts of the Supervisory Board in fiscal year 2010 |
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5. |
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Appointment of the auditors of the financial statements and group financial statements for
fiscal year 2011 |
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6. |
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Resolution on the amendment to Section 4 of the Articles of Incorporation to reflect changes
in the capital structure since the Articles of Incorporation were last amended as well as on
the cancellation of Contingent Capital VI and the corresponding amendment to Section 4 of the
Articles of Incorporation |
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7. |
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Resolution on the authorization of the Executive Board to issue convertible and/or
warrant-linked bonds, the option to exclude shareholders subscription rights, the
cancellation of Contingent Capital IV and Contingent Capital IVa, the creation of new
Contingent Capital IV and the corresponding amendment to Section 4 of the Articles of
Incorporation |
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8. |
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Resolution on the approval of a Control and Profit Transfer Agreement between SAP AG and a
subsidiary |
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II. |
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Report of the Executive Board concerning agenda item 7 |
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III. |
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Further information and details concerning the General Meeting of Shareholders |
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I. |
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AGENDA |
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1. |
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Presentation of the adopted annual financial statements and the approved group financial
statements, the combined management report and group management report of SAP AG, including
the Executive Boards explanatory notes relating to the information provided pursuant to
Sections 289 (4) and (5) and 315 (4) of the Commercial Code (HGB), and the Supervisory Boards
report, each for fiscal year 2010 |
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These documents and the Executive Board proposal for the appropriation of retained earnings
can be viewed on the Internet at http://www.sap.com/agm and will be available for inspection
at the General Meeting of Shareholders. |
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On March 18, 2011, the Supervisory Board approved the annual financial statements prepared
by the Executive Board on March 3, 2011 in accordance with Section 172 sentence 1 of the
German Stock Corporation Act (Aktiengesetz; AktG). The annual financial statements have
thus been adopted. At the same time, the Supervisory Board also approved the group
financial statements. In accordance with Section 173 (1) AktG, it is therefore not
necessary for the General Meeting of Shareholders to adopt the annual financial statements
and to approve the group financial statements. The other aforementioned documents, too,
must merely be made available to the General Meeting of Shareholders, without a resolution
(except in respect of the appropriation of retained earnings) being required. |
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2. |
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Resolution on the appropriation of the retained earnings of fiscal year 2010 |
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The Executive Board and the Supervisory Board propose that the following resolution be
adopted: |
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The retained earnings for fiscal year 2010, reported in the annual financial statements, in
the amount of 5,212,850,165.71, are to be appropriated as follows: |
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Payment of a dividend in the amount of 0.60 per
no-par value share carrying dividend rights |
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= 713,054,439.00 |
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Transfer to other reserves |
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1,000,000,000.00 |
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and carry-forward of the remainder to new account |
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= 3,499,795,726.71 |
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The dividend amount and the remainder to be carried forward to new account set out in
the above resolution proposal are based on a capital stock carrying dividend rights of
1,188,424,065.00, divided into 1,188,424,065 no-par value shares, as at the date of
preparation of the annual financial statements (March 3, 2011). |
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The number of shares carrying dividend rights may have changed by the time the resolution on
the appropriation of retained earnings is passed. If this is the case, the Executive Board
and the Supervisory Board will submit an amended resolution proposal on the appropriation of
retained earnings to the General Meeting of Shareholders, which will also provide for a
distribution of 0.60 per no-par value share carrying dividend rights. Such amendment will
be made as follows: If the number of shares carrying dividend rights, and thus the total
dividend amount, decreases, the amount to be carried forward to new account will be
increased accordingly. If the number of shares carrying dividend rights, and thus the total |
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dividend amount, increases, the amount to be carried forward to new account will be reduced
accordingly. |
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Payment of the dividend will be effected promptly after the General Meeting of Shareholders
and is expected to take place on or after May 26, 2011. |
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3. |
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Resolution on the formal approval of the acts of the Executive Board in fiscal year 2010 |
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The Supervisory Board and the Executive Board propose that the acts of the members of the
Executive Board holding office in fiscal year 2010 be formally approved for that period. |
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4. |
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Resolution on the formal approval of the acts of the Supervisory Board in fiscal year 2010 |
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The Executive Board and the Supervisory Board propose that the acts of the members of the
Supervisory Board holding office in fiscal year 2010 be formally approved for that period. |
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5. |
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Appointment of the auditors of the financial statements and group financial statements for
fiscal year 2011 |
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Following a corresponding recommendation by the audit committee, the Supervisory Board
proposes that KPMG AG Wirtschaftsprüfungsgesellschaft, Berlin, Germany, be appointed
auditors of the financial statements and group financial statements for fiscal year 2011. |
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6. |
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Resolution on the amendment to Section 4 of the Articles of Incorporation to reflect changes
in the capital structure since the Articles of Incorporation were last amended as well as on
the cancellation of Contingent Capital VI and the corresponding amendment to Section 4 of the
Articles of Incorporation |
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Owing to the issue of new shares following the exercise of subscription rights granted under
the SAP AG 2000 Long Term Incentive Plan, the capital stock has increased, and Contingent
Capital IIIa has been reduced accordingly. The amounts and figures stated in Section 4 (1)
and (6) of the Articles of Incorporation are to be amended to reflect the changes which
occurred up to December 31, 2010. Moreover, Contingent Capital VI, which was to be used in
order to serve stock options granted under the SAP Stock Option Plan 2002, is to be
cancelled because all stock options issued under this plan have either been exercised or
have expired and no further stock options may be issued under this plan. Section 4 (10) of
the Articles of Incorporation is therefore to be deleted. |
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The Executive Board and the Supervisory Board propose that the following resolution be
adopted: |
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a) |
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Article 4 (1) of the Articles of Incorporation is restated as follows: |
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The Companys capital stock amounts to 1,226,822,697 and is divided into
1,226,822,697 no-par value ordinary shares. |
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b) |
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Article 4 (6) sentence 1 of the Articles of Incorporation is restated as follows: |
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The capital stock is subject to a further contingent increase by 35,391,628 by
issuing up to 35,391,628 no-par value ordinary voting bearer shares (Contingent
Capital IIIa). |
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c) |
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The remaining portion of Contingent Capital VI, which was created by resolution
of the General Meeting of Shareholders of May 3, 2002 under agenda item 11, is
cancelled. |
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Article 4 (10) of the Articles of Incorporation is deleted. The former Article 4
(11) will now be Article 4 (10). |
7. |
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Resolution on the authorization of the Executive Board to issue convertible and/or
warrant-linked bonds, the option to exclude shareholders subscription rights, the
cancellation of Contingent Capital IV and Contingent Capital IVa, the creation of new
Contingent Capital IV and the corresponding amendment to Section 4 of the Articles of
Incorporation |
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By two resolutions adopted by the General Meeting of Shareholders of May 9, 2006, the
Executive Board was authorized to issue convertible and/or warrant-linked bonds on or before
May 8, 2011 in an aggregate principal amount of up to 5 billion in each case and carrying
conversion or option rights in respect of shares in the Company representing a pro rata
share in the capital stock of up to 100 million. In view of the fact that the
authorizations that were granted in this context have expired without having been exercised,
it is proposed to the General Meeting of Shareholders that a new authorization be granted
for the issue of convertible and/or warrant-linked bonds in order to ensure that the Company
will have this instrument at its disposal, should the need arise, also in the coming years.
The authorization permits the issue of bonds carrying conversion or option rights in respect
of SAP AG shares representing a pro rata amount of capital stock of up to 100 million. |
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The Executive Board and the Supervisory Board propose that the following resolution
be adopted: |
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a) |
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Authorization to issue convertible and/or warrant-linked bonds and on the
exclusion of shareholders subscription rights |
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(aa) |
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Authorization period, principal amount, term, number of shares |
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The Executive Board is authorized, subject to the consent of the Supervisory
Board, to issue bearer and/or registered convertible and/or warrant-linked
bonds (hereinafter also referred to as the Bonds) on one or more occasions
on or before May 24, 2016 in an aggregate principal amount of up to 7.5
billion with a maximum term of thirty years and to grant to the holders or
creditors of Bonds conversion or option rights in respect of SAP AG shares
representing a pro rata amount of capital stock of up to 100 million in
accordance with the more detailed terms and conditions of the Bonds
(hereinafter also referred to as the Bond Terms). |
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(bb) |
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Currency, issue by majority holdings |
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To the extent legally permissible and limited to the relevant euro
equivalent, the Bonds may be issued not only in euro but also in the legal
currency of an |
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OECD country. They may also be issued by any direct or
indirect majority holdings of SAP AG (companies in which SAP AG directly or
indirectly holds a majority of votes and capital), in which case the
Executive Board is authorized, subject to the consent of the Supervisory
Board, to provide the guarantee for the Bonds on behalf of SAP AG and to
grant or guarantee to the holders or creditors of such Bonds convertible or
option rights in respect of SAP AG shares. |
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(cc) |
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Conversion right |
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If convertible bearer bonds or registered convertible bonds are issued, the
holders, or respectively the creditors, of the convertible bonds will have
the right to convert their convertible bonds into shares in the Company in
accordance with the Bond Terms. The conversion ratio is determined by
dividing the principal amount of each definitive Bond (hereinafter also
referred to as a Definitive Bond) by the fixed conversion price for one SAP
AG share. The conversion ratio may also be determined by dividing the issue
price of a Definitive Bond, if lower than the principal amount, by the fixed
conversion price for one SAP AG share. Provision may be made for the
conversion ratio to be variable and/or the conversion price to be fixed,
within a range to be determined, by reference to the development of the
price of the SAP AG share during the term of the convertible bond or to be
changed as a result of anti-dilution provisions pursuant to lit. (ff). The
conversion ratio may in any event be rounded up or down to an integral
number; moreover, a provision may be made for an additional cash payment to
be effected by the holder or creditor of the Definitive Bond. Where
conversion rights to fractional shares arise, provision may be made to
permit for these fractional shares to be consolidated in accordance with the
Bond Terms such that conversion rights are created that entitle their
holders to subscribe for whole shares where applicable, against an
additional cash payment and/or for these fractional shares to be
compensated in cash. The pro rata amount of capital stock represented by
the shares to be issued upon conversion of each Definitive Bond must not
exceed the principal amount of the Definitive Bond or the issue price of the
Definitive Bond, if lower than the principal amount. |
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(dd) |
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Option right |
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If warrant-linked bonds are issued, one or more warrants will be attached to
each Definitive Bond entitling the holder or creditor to subscribe for SAP
AG shares in accordance with the warrant terms and conditions. Provision
may be made for the option price to be fixed, within a range to be
determined, by reference to the development of the price of the SAP AG share
during the term of the warrant-linked bond or to be changed as a result of
anti-dilution provisions pursuant to lit. (ff). The warrant terms and
conditions may provide that the option price may also be paid by
transferring Definitive Bonds and, if necessary, by effecting an additional
cash payment. The relevant conversion ratio will be equal to the principal
amount of a Definitive Bond divided by the option price for one SAP AG
share. Where subscription rights to fractional shares arise, provision may
be made to permit for these
fractional shares to be consolidated in accordance with the Bond Terms such
that subscription rights are created that entitle their holders to subscribe
for whole shares where applicable, against an additional cash payment
and/or for these fractional shares to be compensated in cash. The pro rata
amount of capital stock |
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represented by the shares to be subscribed for each
Definitive Bond must not exceed the principal amount of the Definitive Bond
or the issue price of the Definitive Bond, if lower than the principal
amount. The maximum term of the option rights is thirty years. |
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(ee) |
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Cash payment, granting of existing shares |
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The Bond Terms may provide that the Company, in the event of a conversion or
the exercise of an option, will not grant shares in the Company but will pay
the equivalent value in cash which, in accordance with the more detailed
Bond Terms, corresponds to the average price of the SAP AG share in the
XETRA trading system on the Frankfurt Stock Exchange (or any electronic
trading system replacing the XETRA trading system) during the ten trading
days preceding or following the date on which conversion is declared or the
option is exercised. This average price will be the arithmetic mean of the
closing auction prices. If no closing auction is effected in the relevant
electronic trading system, the closing auction price will be replaced by the
price determined in the last auction that takes place on a trading day or,
in the absence of any such auction, the last price determined on that
trading day. The Bond Terms may also provide that, in the event of a
conversion or the exercise of an option, the Company may elect to grant
existing shares in the Company rather than new shares. |
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(ff) |
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Conversion/option price, anti-dilution provisions |
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Even in the event of a variable conversion ratio or a variable conversion or
option price, the conversion or option price to be determined for each share
must be equivalent either in the event that shareholders subscription
rights are excluded to at least 80% of the average price of the SAP AG
share in the XETRA trading system on the Frankfurt Stock Exchange (or any
electronic trading system replacing the XETRA trading system) during the ten
trading days preceding the day on which the Executive Board adopts the
resolution on the issue of the convertible or warrant-linked bond (day of
the final decision by the Executive Board to submit an offer regarding the
subscription of Bonds or regarding the declaration of acceptance by the
Company following a request to submit subscription offers, as applicable) or
alternatively in the event that shareholders subscription rights are
granted to at least 80% of the average price of the SAP AG share in the
XETRA trading system on the Frankfurt Stock Exchange (or any electronic
trading system replacing the XETRA trading system) in the period from the
start of the subscription period to the day immediately preceding the
publication of the final terms pursuant to Section 186 (2) sentence 2 AktG.
This average price will be the arithmetic mean of the closing auction
prices. If no closing auction is effected in the relevant electronic
trading system, the closing auction price will be replaced by the price
determined in the last auction that takes place on a trading day or, in the
absence of any such auction, the last price determined on that trading day.
Section 9 (1) AktG remains unaffected. Should any dilution of the economic
value of the existing conversion or option rights occur during the term of
the Bonds or warrants granting a
conversion or option right and should no subscription rights be granted by
way of compensation, the conversion or option rights may, without prejudice
to Section 9 (1) AktG, be adjusted in a manner preserving their value, save
to the extent that such adjustment is already governed by mandatory law. In
any event, the pro rata amount of capital stock represented by the shares to
be |
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subscribed for each Definitive Bond must not exceed the lower of the
principal amount or issue price per Definitive Bond. |
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(gg) |
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Granting of shareholders subscription rights, exclusion of
shareholders subscription rights |
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The shareholders are generally entitled to subscription rights in respect of
the Bonds. The Bonds may also be underwritten by one or more credit
institutions or a syndicate of credit institutions, or enterprises which
have an equivalent status under Section 186 (5) sentence 1 AktG, with the
obligation to offer them to the shareholders for subscription (indirect
subscription right). If the Bonds are issued by a direct or indirect
majority holding of SAP AG, SAP AG must ensure that its shareholders are
granted subscription rights in accordance with the foregoing sentences. The
Executive Board is authorized, however, subject to the consent of the
Supervisory Board, to exclude shareholders subscription rights in respect
of the Bonds in the following cases: |
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in respect of fractional shares arising as a result of the
subscription ratio; |
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to the extent necessary to grant to the holders or creditors of
previously issued conversion or option rights subscription rights in
the scope to which they would have been entitled as shareholders
following the exercise of the conversion or option rights; |
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if the issue price of the Bonds is not substantially below their
market value determined in accordance with generally accepted methods
in particular of finance mathematics. This authorization to exclude
shareholders subscription rights only applies, however, to Bonds
carrying conversion or option rights in respect of shares representing
a pro rata amount of capital stock of SAP AG of no more than 10% in
aggregate. For the purpose of calculating the 10% threshold, the lower
of the amounts of capital stock existing at the time the resolution on
this authorization is adopted by the General Meeting of Shareholders or
at the time this authorization is exercised will be relevant. The
authorized volume will be reduced by the pro rata amount of capital
stock represented by any new or repurchased shares which were issued or
sold during the term of this authorization subject to the simplified
exclusion of shareholders subscription rights pursuant to or in
accordance with Section 186 (3) sentence 4 AktG as well as by the pro
rata amount of capital stock attributable to any option and/or
conversion rights under any bonds that were issued on or after May 25,
2011 applying Section 186 (3) sentence 4 AktG mutatis mutandis; |
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(hh) |
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Authorization to determine the further details |
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The Executive Board is authorized to fix, or determine in agreement with the
corporate bodies of the majority holdings of SAP AG issuing the convertible
or warrant-linked bonds, the further details of the issue and the terms of
the Bonds, in particular the interest rate, the issue price, the term and
denomination, the conversion or option period, other conditions in line with
market standards and, subject to the aforementioned provisions, the
conversion or option price and any anti-dilution provisions. |
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(ii) |
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Option to have the Supervisory Boards approval given by a committee |
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Insofar as the approval of the Supervisory Board is required in accordance
with the foregoing, a committee formed by the Supervisory Board may grant
this approval in the place of the Supervisory Board. |
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b) |
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Cancellation of Contingent Capital IV and Contingent Capital IVa, each resolved
by the General Meeting of Shareholders of May 9, 2006 |
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Contingent Capital IV and Contingent Capital IVa, each resolved by the General
Meeting of Shareholders of May 9, 2006 under agenda item 11, are cancelled. |
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c) |
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Contingent capital increase |
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The capital stock is subject to a further contingent increase of up to 100 million
by issuing up to 100 million no-par value ordinary voting bearer shares. The
contingent capital increase serves to grant shares upon the exercise of conversion
or option rights under convertible or warrant-linked bonds issued or guaranteed by
the Company or any of its direct or indirect majority holdings by virtue of the
above authorization on or before May 24, 2016 to the holders or creditors of
convertible bonds or warrants in accordance with the Bond Terms. The new shares
will be issued at the respective conversion or option price to be determined in
accordance with lit. a) (ff) above. The contingent capital increase will be
implemented only to the extent that the holders or creditors of convertible bonds or
warrants under warrant-linked bonds issued or guaranteed by SAP AG or any of its
direct or indirect majority holdings on or before May 24, 2016 by virtue of the
authorization resolved by the General Meeting of Shareholders of May 25, 2011
exercise their conversion or option rights and to the extent that no other methods
of servicing these rights are used. The new shares issued as a result of the
exercise of the conversion or option right will participate in the profits as from
the beginning of the fiscal year in which they are created. The Executive Board is
authorized to determine the further details of the implementation of the contingent
capital increase. |
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d) |
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Amendment of the Articles of Incorporation |
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Section 4 (8) of the Articles of Incorporation is amended to read as follows: |
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The capital stock shall be subject to a further contingent increase by up to 100
million by issuing up to 100 million no-par value ordinary voting bearer shares
(Contingent Capital IV). The contingent capital increase shall be implemented only
to the extent that the holders or creditors of convertible bonds or warrants under
warrant-linked bonds issued or guaranteed by SAP AG or any of its direct or indirect
majority holdings on or before May 24, 2016 by virtue of the authorization resolved
by the General Meeting of Shareholders of May 25, 2011 exercise their conversion or
option rights and no other methods for servicing these rights are
used. The new shares shall in each case be issued at the conversion or option price to be
determined in accordance with the above authorization resolution. The new shares
shall
participate in the profits as from the beginning of the fiscal year in which they
are created as a result of the exercise of conversion or option rights. The
Executive Board shall be authorized to determine the further details of the
implementation of the contingent capital increase. |
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Section 4 (8a) of the Articles of Incorporation is deleted. |
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8. |
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Resolution on the approval of a Control and Profit Transfer Agreement between SAP AG and a
subsidiary |
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On March 23, 2011, SAP AG and SAP Sechste Beteiligungs- und Vermögensverwaltungs GmbH, a
wholly-owned subsidiary of SAP AG having its registered office in Walldorf, entered into a
Control and Profit Transfer Agreement (hereinafter also the Agreement). |
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The key terms of the Control and Profit Transfer Agreement between SAP AG and SAP Sechste
Beteiligungs- und Vermögensverwaltungs GmbH (hereinafter also the Subsidiary) dated March
23, 2011 are as follows: |
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The Subsidiary places the management of its company under the control of SAP AG.
SAP AG is thus authorized to issue directions to the Subsidiarys management with
respect to managing the companys business. The Subsidiarys management is obligated
to comply with these directions. SAP AG may not issue directions to the Subsidiarys
management concerning the amendment, maintenance or termination of the Control and
Profit Transfer Agreement. |
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The Subsidiary undertakes to transfer all of its profits to SAP AG during the term
of the Agreement. In accordance with Section 301 AktG as currently in force, the
amount to be transferred, subject to the establishment and dissolution of reserves in
compliance with the limitations set out below, will be the annual net profit arising
without the transfer of profits in accordance with the relevant provisions of German
commercial law, less any loss carried forward from the preceding year, any amount to be
transferred to the statutory reserve pursuant to Section 300 AktG and the amount not
available for distribution pursuant to Section 268 (8) HGB. Should Section 301 AktG be
amended in future, it will apply mutatis mutandis as amended from time to time. The
obligation to transfer profits will for the first time apply for the full fiscal year
of the Subsidiary in which the Agreement takes effect. The claim for transfer of
profits will arise and fall due at the end of each fiscal year, and interest will be
payable thereon as from such date in accordance with Sections 352 (1), 353 HGB. |
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The Subsidiary may allocate amounts from the annual net profit to the revenue
reserves pursuant to Section 272 (3) HGB with the consent of SAP AG, only to the extent
this is permissible under applicable commercial law and justified in economic terms on
the basis of reasonable commercial assessment. Any other revenue reserves pursuant to
Section 272 (3) HGB established during the term of the Agreement must, upon SAP AGs
request, be dissolved and used to compensate any annual net loss or transferred as
profits. Any other reserves and any profit carried forward from the period prior to
the date of the Agreement must neither be transferred as profits nor used to compensate
any annual net loss. |
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In accordance with Section 302 (1) AktG, SAP AG will be obligated to compensate any
annual net loss of the Subsidiary which would otherwise arise during the term of the
Agreement in accordance with the relevant provisions of applicable commercial law,
unless such annual net loss is compensated by withdrawal of any amounts in accordance
with the provisions of the Agreement as described above from the other revenue reserves
pursuant to Section 272 (3) HGB which were allocated to such reserves during the term of
the Agreement. Should Section 302 (1) AktG be amended in future, it will apply as
amended from time to time. The other paragraphs of Section 302 AktG will also apply
mutatis mutandis as amended from time to time. (The current version of the relevant
paragraphs (3) and (4) of Section 302 AktG reads as follows: (3) The company may only
waive or compromise any claim for compensation after the expiration of three years from |
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the date on which the registration of termination of the agreement in the commercial
register has been published pursuant to Section 10 of the Commercial Code. The
foregoing will not apply if the party obligated to compensate is insolvent and enters
into a settlement with its creditors to avoid insolvency proceedings or if provisions
governing the compensation obligation are included in an insolvency plan. Such waiver
or settlement will only become effective if the outside shareholders consent to such
waiver or settlement by separate resolution and no minority whose holding in aggregate
equals or exceeds one-tenth of the share capital represented at the passing of the
resolution has recorded an objection in the minutes. (4) Any claims under the
foregoing provisions will become time-barred after ten years starting from the date on
which the registration of termination of the agreement in the commercial register has
been published pursuant to Section 10 of the Commercial Code.) The obligation to
assume losses will for the first time apply for the full fiscal year of the Subsidiary
in which the Agreement takes effect. The claim for assumption of losses will arise and
fall due at the end of each fiscal year, and interest will be payable thereon as from
such date in accordance with Sections 352 (1), 353 HGB. |
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The Agreement requires the approval of the General Meeting of Shareholders of SAP AG
and the shareholders meeting (Gesellschafterversammlung) of the Subsidiary in order to
be effective. The Agreement will become effective upon registration in the commercial
register at the place where the Subsidiary has its registered office. |
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The Agreement is concluded for a term of five full years (which do not have to
coincide with the calendar year) as from the beginning of the Subsidiarys fiscal year
in which the Agreement becomes effective upon registration in the commercial register
of the Subsidiary, but no earlier than from the beginning of the fiscal year to which
Section 14 (1) sentence 1 of the German Corporate Income Tax Act
(Körperschaftsteuergesetz) applies for the first time (the Minimum Term). The
Agreement may not be terminated during the initial five-year term. After the Minimum
Term, the Agreement will be automatically renewed for an additional period of one year,
unless terminated in writing by either party upon three months notice to the end of
the calendar year. In order to determine whether or not the notice period has been
observed, the time of receipt of the notice of termination by the respective other
party shall be decisive. In the event that a fiscal year of the Subsidiary during the
term of this Agreement comprises less than twelve calendar months or a fiscal unity for
corporation tax purposes (körperschaftsteuerliche Organschaft) is not recognized by the
tax authorities for the first year of validity of this Agreement, the Minimum Term of
the Agreement is extended by additional complete (short) fiscal years up to the
expiration of at least five full years (which do not have to coincide with the calendar
year). |
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The right of either party to terminate the Agreement for cause without observing any
notice period will remain unaffected. SAP AG will in particular be entitled to
terminate the Agreement for cause in the event that SAP AG ceases to hold the majority
of the voting rights in the Subsidiary or for any other reason within the meaning of R
60 (6) of the German Income Tax Rules of 2004 (Körperschaftsteuer-Richtlinien 2004) or
any other provision replacing such provision. |
|
|
- |
|
By entering into this Agreement, the parties among other things intend to
effectively establish a fiscal unity for income tax purposes (ertragsteuerliche
Organschaft). Should any provision of the Agreement be or become invalid or
impracticable in whole or in part, or should a gap be identified in the Agreement, this
will not affect the validity of the Agreement as a whole. The invalid or impracticable
provision will be replaced by a valid provision that corresponds to the economic intent
of the Agreement. In the event of any |
11
|
|
|
gap, such provision is to be agreed as would
have been agreed in line with the intent and purpose of the Agreement had the parties
been aware of the gap. |
|
|
SAP AG is the sole shareholder of the Subsidiary and will still be its sole shareholder on
the date of the General Meeting of Shareholders. For this reason, SAP AG is not required to
make any compensation or consideration payments pursuant to Sections 304 and 305 AktG to
outside shareholders of the Subsidiary. For the same reason, the Agreement need not be
reviewed by a contract auditor (Vertragsprüfer). |
|
|
|
The Control and Profit Transfer Agreement will take effect only upon both the approval of
the General Meeting of Shareholders of SAP AG and the shareholders meeting of the
Subsidiary. |
|
|
|
The Executive Board and the Supervisory Board propose that the Control and Profit Transfer
Agreement concluded on March 23, 2011 between SAP AG and SAP Sechste Beteiligungs- und
Vermögensverwaltungs GmbH with its registered office in Walldorf be approved. |
|
|
|
The following documents can be viewed on the Internet at http://www.sap.com/agm and will be
available for inspection at the General Meeting of Shareholders: |
|
- |
|
the Control and Profit Transfer Agreement dated March 23, 2011 between SAP AG and
the Subsidiary; |
|
|
- |
|
the adopted annual financial statements and the approved group financial statements
as well as the management reports for SAP AG and the group for fiscal years 2008, 2009
and 2010; |
|
|
- |
|
the opening balance sheet of the Subsidiary; |
|
|
- |
|
the joint report by the Executive Board of SAP AG and the management of the
Subsidiary delivered in accordance with Section 293a AktG. |
***
12
II. |
|
REPORT OF THE EXECUTIVE BOARD CONCERNING AGENDA ITEM 7 |
Report of the Executive Board pursuant to Section 221 (4) sentence 2 in conjunction with Section
186 (4) sentence 2 AktG
By two resolutions adopted by the General Meeting of Shareholders of May 9, 2006, the Executive
Board was authorized to issue bearer and/or registered convertible and/or warrant-linked bonds on
one or more occasions on or before May 8, 2011 in an aggregate principal amount of up to 5 billion
in each case. In view of the fact that these existing authorizations have expired without having
been exercised, it is proposed to the General Meeting of Shareholders of May 25, 2011 that a new
authorization be granted for the issue of convertible and/or warrant-linked bonds (hereinafter also
referred to as the Bonds). The authorization proposed under item 7 on the agenda of the General
Meeting of Shareholders of May 25, 2011 permits the issue of Bonds carrying conversion or option
rights in respect of SAP AG shares representing a pro rata amount of capital stock of up to 100
million.
Adequate capital resources are an important requirement for the Companys development. The issue
of convertible and/or warrant-linked bonds offers the Company attractive financing opportunities at
relatively low interest, and the proposed authorization is designed to again open up these
opportunities to the Company. The authorization gives the Company the flexibility required to
raise capital, depending on the situation prevailing on the market, in the German capital market or
even in the international capital market, in particular through direct or indirect majority
holdings of SAP AG.
The authorization provides that the convertible and/or warrant-linked bonds are generally to be
offered to the shareholders for subscription (Section 221 (4) AktG in conjunction with Section 186
(1) AktG). In order to facilitate implementation, use may in this regard be made of the option to
offer the convertible and/or warrant-linked bonds to one or more credit institutions or a syndicate
of credit institutions, or enterprises which have an equivalent status under Section 186 (5)
sentence 1 AktG, with the obligation to offer the Bonds to the shareholders for subscription in
accordance with their subscription rights (indirect shareholders subscription right within the
meaning of Section 186 (5) sentence 1 AktG). If the Bonds are issued by a direct or indirect
majority holding of SAP AG, SAP AG must ensure that the subscription rights of SAP AG shareholders
are granted in accordance with the foregoing sentences.
The resolution proposal, however, provides for the option to exclude the shareholders subscription
rights in respect of the Bonds in the following cases:
It is proposed that the Executive Board be authorized, subject to the consent of the Supervisory
Board, to exclude fractional shares from the shareholders subscription rights. Such fractional
shares may result from the amount of the issue volume and the determination of a practicable
subscription ratio. An exclusion of the shareholders subscription rights in these cases
facilitates the implementation of the capital-related measure, in particular of the shareholders
subscription rights.
It is further proposed that the Executive Board be granted the option, subject to the consent of
the Supervisory Board, to exclude the shareholders subscription rights in order to grant to the
holders or creditors of previously issued conversion and option rights subscription rights in the
scope to which they would have been entitled as shareholders following the exercise of the
conversion or option rights. This will permit to grant to the holders or creditors of conversion
or option rights already existing at this point in time subscription rights in lieu of a reduction
of the conversion or option price as anti-dilution protection. Equipping bonds with anti-dilution
protection is in line with standard market practice.
It is further proposed that the Executive Board be authorized, applying Section 186 (3) sentence 4
AktG mutatis mutandis, to exclude, subject to the consent of the Supervisory Board, the
shareholders
13
subscription rights if the Bonds are issued at a price that is not substantially
below their market value determined in accordance with generally accepted methods in particular of
finance mathematics. This can be expedient in order to promptly respond to favorable conditions on
the stock exchange and to quickly and flexibly place a Bond in the market on attractive conditions.
The equity markets have become clearly more volatile. The ability to promptly react to market
developments will therefore be vital for the result of the issue to be as favorable as possible.
Favorable conditions that are as near market as possible can generally be established only if the
Company is not bound by those conditions for an excessively long offer period. The issue of
subscription rights generally requires a significant safety margin to be deducted in order to
ensure the attractiveness of the conditions and thus the issues chances of success over the entire
offer period. It is true that Section 186 (2) AktG allows the subscription price (and thus the
terms and conditions of the Bonds in the case of convertible and/or warrant-linked bonds) to be
published three days prior to the expiration of the subscription period at the latest. In light of
the volatility in the stock markets, however, this still involves a market risk, in particular a
price change risk, for several days, which may lead to the deduction of safety margins in
connection with the determination of the terms and conditions of the bonds and thus to conditions
that are not optimal. In addition, even where shareholders subscription rights are granted, a
full placement will not automatically be ensured and an alternative placement with third parties
will in any event involve additional expenses given the uncertainty of the exercise of such rights
(subscription behavior). Finally, if the Company were to grant subscription rights, it would not
be in a position to promptly react to a change in market conditions due to the length of the
subscription period but would be exposed to declining share prices during the subscription period,
which could lead to less favorable opportunities for the Company to procure capital.
In this case of exclusion of shareholders subscription rights in connection with the issue of
convertible and warrant-linked bonds, the provision set forth in Section 186 (3) sentence 4 AktG
regarding the simplified exclusion of shareholders subscription rights applies mutatis mutandis
pursuant to Section 221 (4) sentence 2 AktG. In order to comply with the threshold of 10% of
capital stock that is applicable to the simplified exclusion of shareholders subscription rights
provided for in Section 186 (3) sentence 4 AktG, the authorization concerning the simplified
exclusion of shareholders subscription rights is limited to the issue of Bonds carrying conversion
or option rights in respect of shares representing a pro rata amount of no more than 10% of the
Companys capital stock in aggregate. The resolution proposal under agenda item 7 provides that,
for the purpose of calculating the 10% threshold, the lower of the amounts of capital stock
existing at the time the resolution concerning this authorization is adopted by the General Meeting
of Shareholders of May 25, 2011 or at the time the authorization is exercised is to be relevant.
Moreover, the resolution proposal provides for a deduction clause pursuant to which the 10%
threshold will be reduced to the extent that other authorizations concerning the simplified
exclusion of shareholders subscription rights are exercised after adoption of the resolution by
the General Meeting of Shareholders of May 25, 2011.
The interests of the shareholders are safeguarded by the fact that the Bonds must not be issued
substantially below their market value. This will prevent a significant economic dilution of the
value of the shares. Whether or not the Bonds are issued substantially below their market value
will be determined by calculating the market value of the convertible or warrant-linked bonds in
accordance with generally accepted methods in particular of finance mathematics and comparing it
with the offer price. The Executive Board will in its price determination, taking into account the
situation then prevailing on the capital market, ensure that the deduction from the market value
will be as low as possible. If the Executive Board considers it appropriate in any given situation
to seek professional advice, it may rely on the support of third parties. For instance, a bank (or
underwriting bank) involved in the issue may confirm in an appropriate form that the issue price
will not be substantially below the market value of the shares. This may also be confirmed by a
bank not involved in the issue
or an auditing firm or any other expert. Such an effect would reduce the calculated value of a
subscription right to virtually zero, so that no appreciable economic disadvantage will be suffered
by the shareholders due to the exclusion of their subscription rights.
14
Irrespective of such an examination by the Executive Board, the establishment of conditions that
are in line with market standards and the associated avoidance of any appreciable dilution of the
share value may also be achieved by a bookbuilding process. In such a process, the convertible or
warrant-linked bonds are not offered at a fixed issue price but the issue price and/or individual
conditions of the convertible and/or warrant-linked bonds (e.g. interest rate and conversion or
option price) will be established on the basis of the purchase orders submitted by investors. As a
result, the total value of the Bonds will be determined near market.
All of these measures will ensure that the value of the Companys shares is not significantly
diluted as a result of the exclusion of shareholders subscription rights. Moreover, the
shareholders intending to maintain their share in the Companys capital stock have the option to
acquire shares on the stock exchange on almost identical conditions.
The purpose of Contingent Capital IV that is to be newly created is to service the conversion or
option rights linked to the convertible and/or warrant-linked bonds to the extent that no other
methods of servicing these rights are used. The issue price of the new shares will be determined
in accordance with lit. a) (ff) of the resolution proposed. In this provision, the bases for the
determination of the minimum issue amount are stipulated in accordance with Section 193 (2) no. 3
AktG, as a result of which the Company will have extensive flexibility in fixing the terms and
conditions of the Bonds.
According to the resolution proposal, the conversion or option price to be determined for each
share must, even in the event of a variable conversion ratio or a variable conversion or option
price, be equivalent either in the event that shareholders subscription rights are excluded
to at least 80% of the average price of the SAP AG share in the XETRA trading system on the
Frankfurt Stock Exchange (or any electronic trading system replacing the XETRA trading system)
during the ten trading days preceding the day on which the Executive Board adopts the resolution on
the issue of the convertible or warrant-linked bond or in the event that shareholders
subscription rights are granted to at least 80% of the average price of the SAP AG share in the
XETRA trading system on the Frankfurt Stock Exchange (or any electronic trading system replacing
the XETRA trading system) in the period from the start of the subscription period to the day
immediately preceding the publication of the final terms pursuant to Section 186 (2) sentence 2
AktG. This average price will be the arithmetic mean of the closing auction prices. If no closing
auction is effected in the relevant electronic trading system, the closing auction price will be
replaced by the price determined in the last auction that takes place in the relevant electronic
trading system on a trading day or, in the absence of any such auction, the last price determined
in the relevant electronic trading system on that trading day. Section 9 (1) AktG is to remain
unaffected, which means that shares must in no event be issued at a price below the pro rata amount
of capital stock represented by them. Should any dilution of the economic value of the existing
conversion or option rights occur during the term of the Bonds or warrants granting a conversion or
option right and should no subscription rights be granted by way of compensation, it is intended
that it should be possible for the conversion or option rights to be adjusted, without prejudice to
Section 9 (1) AktG, in a manner preserving their value save to the extent that such adjustment is
already governed by mandatory law. This will give the Executive Board the opportunity to include
such dilution protection provisions as are customarily required in the Bond Terms. In any event,
the pro rata amount of capital stock represented by the shares to be subscribed for each Definitive
Bond must not exceed the lower of the principal amount or issue price per Definitive Bond.
However, it is intended that it should also be possible to provide in the Bond Terms that the
Company, in the event of a conversion or the exercise of an option, will not grant shares in the
Company but will pay the equivalent value in cash or that the Company may elect to grant existing
shares in the Company rather than new shares.
15
The Executive Board will report to the General Meeting of Shareholders on each exercise of the
authorization to issue convertible and/or warrant-linked bonds.
16
III. |
|
FURTHER INFORMATION AND DETAILS CONCERNING THE GENERAL MEETING OF SHAREHOLDERS |
|
1. |
|
Conditions for attending the General Meeting of Shareholders and exercising voting rights |
|
a) |
|
Application to attend and proof |
Shareholders are entitled to attend the General Meeting of Shareholders and to exercise their
voting rights only if they have submitted an application prior to the General Meeting of
Shareholders and furnished proof of their shareholding to the Company. Application must be made in
German or English and must be received by the Company in text form (Section 126b of the German
Civil Code (Bürgerliches Gesetzbuch; BGB)). Proof of shareholding must be furnished by way of a
confirmation issued by a depositary institution in text form (Section 126b BGB) in German or
English. The confirmation issued by the depositary institution must relate to the beginning (i.e.
0.00 hrs Central European Summer Time (CEST)) of May 4, 2011 (the Record Date). The application as
well as the proof of shareholding must be received by the Company by no later than the end (i.e.
24.00 hrs (CEST)) of May 18, 2011 at the address below:
SAP AG
c/o Deutsche WertpapierService Bank AG (dwpbank)
WASHV
Wildunger Straße 14
D-60487 Frankfurt am Main
or by fax: +49(0)69 5099 1110
or by e-mail: hv-eintrittskarten@dwpbank.de
b) |
|
Relevance of the Record Date |
In relations with the Company, a person will be deemed to be a shareholder for the purpose of
attending the General Meeting of Shareholders or exercising voting rights only if proof of their
shareholding, as described above, has been furnished. Any changes in shareholdings occurring after
the Record Date are of no relevance in this regard. Shareholders who have purchased their shares
only after the Record Date are therefore not entitled, in relations with the Company, to attend the
General Meeting of Shareholders or exercise voting rights as shareholders. Shareholders who have
duly applied for attendance and provided proof of their shareholdings are entitled, in relations
with the Company, to attend the General Meeting of Shareholders and to exercise their voting rights
even if they sold their shares after the Record Date. The Record Date will not affect the
calculation of the shareholders dividend entitlement.
c) |
|
Ordering admission tickets |
Following receipt of the application to attend and proof of their shareholdings by the Company at
the above mailing address, fax number or e-mail address, the shareholders will be issued with
admission tickets serving as identification for attendance and for the exercise of their voting
rights. Most depositary institutions will ensure timely receipt of the admission tickets, provided
that shareholders complete the forms for ordering admission tickets sent to them by their
depositary institutions and return them to the relevant depositary institution in sufficient time
for such institution to arrange for the application and proof of shareholding to be submitted on
behalf of the shareholders before the application period ends.
17
Within the scope specified below, shareholders also have the option to vote by post, i.e. without
having to attend the General Meeting of Shareholders. This, too, requires orderly submission of
the application and of proof of their shareholding, as set out in section 1 above (Conditions for
attending the General Meeting of Shareholders and exercising voting rights). Voting by post must
be performed in writing, using the (postal voting) form which is printed on the admission ticket
and which is also available on the Internet at http://www.sap.com/agm. The form used for postal
voting must be received by the Company, fully completed and in particular marked with the admission
ticket number, by May 24, 2011 (day of receipt of post) by the Company at the following address:
SAP AG
c/o Computershare HV-Services AG
Prannerstraße 8
D-80333 Munich
The fully completed form may also be sent by fax and must in this case be received by 12.00 hrs
(CEST) on May 24, 2011, on fax number +49 (0)89 30903 74675.
Postal voting will be limited to voting on resolution proposals of the Executive Board and/or
Supervisory Board that were published in the invitation to the General Meeting of Shareholders
(including a potential adjustment of the resolution on the appropriation of retained earnings to
reflect the number of shares carrying dividend rights existing at the time the resolution is
adopted) as well as on shareholders resolution proposals published together with any addition to
the agenda pursuant to Section 122 (2) AktG.
Votes cast by post may be revoked or amended by written notice directed at the address specified
above (in this section 2) by May 24, 2011 (day of receipt of post) or by transmitting the written
notice by fax to the number specified above (+49 (0)89 30903 74675) by 12.00 hrs (CEST) (time of
receipt of fax). The right to attend the General Meeting of Shareholders remains unaffected. If
shareholders wish to attend the General Meeting of Shareholders either themselves or through a
proxy and to represent the relevant shares, i.e. to exercise the shareholder rights arising from
such shares, despite having previously cast their votes by post, this will be possible but will be
deemed a revocation of the votes cast by post. This also applies in the event that shareholders,
either themselves or through a proxy, participate in the General Meeting of Shareholders by way of
online participation (see section 3 below).
3. |
|
Online participation in the General Meeting of Shareholders |
Within the scope specified below, shareholders also have the option to participate in the General
Meeting of Shareholders directly via the Internet, i.e. without having to be physically present at
the place where it is held (online participation). This, too, requires orderly submission of the
application and of proof of their shareholding, as set out in section 1 above (Conditions for
attending the General Meeting of Shareholders and exercising voting rights). From 8.00 hrs (CEST)
on May 25, 2011, shareholders can log in to the online participation system on
http://www.sap.com/agm by entering the required access data and will then be able to participate
online in the General Meeting of Shareholders from its beginning. In addition to the admission
ticket number, the required access data comprise a validation code, the family name, first name and
place of residence of the person in whose name the admission ticket is made out, and the relevant
number of shares, each as printed on the admission ticket. Once shareholders have entered these
access data for the first time, they will receive an access code, which, together with the
admission ticket number and the validation code, allows them to again access the online
participation system, if required, as well as the Internet dialogue for granting proxy
authorization and issuing instructions to Company proxies (see section 4
lit. c) below for more detail).
18
Online participation is not possible if the relevant shares are
represented by a participant (the shareholder or his/her proxy) who is present at the place where
the General Meeting of Shareholders is held.
Persons participating online will be able to follow the entire General Meeting of Shareholders
audio-visually via the Internet, to cast their votes in realtime in the voting procedure and to
inspect the list of participants of the General Meeting of Shareholders electronically. Any
further options of exercising shareholder rights by way of online participation will not be
available for technical and organizational reasons. If participants wish to discontinue their
online participation before the voting procedure begins, they may (among other options) authorize
the Company proxies to exercise the participants voting rights in accordance with their
instructions.
4. |
|
Voting by proxy |
|
a) |
|
Option to vote by proxy |
Shareholders may elect to have their voting rights exercised by a proxy, e.g. by a bank, a
shareholders association, by proxies designated by the Company or another person of their choice.
In this case, too, orderly submission of the application to attend and of proof of shareholding is
required as set out in section 1 above (Conditions for attending the General Meeting of
Shareholders and exercising voting rights). It is possible to appoint a proxy both prior to and
during the General Meeting of Shareholders, and proxies may be appointed by way of the shareholder
making a declaration to the relevant proxy or to the Company.
The proxy attending the General Meeting of Shareholders may exercise the voting right in the same
way as the shareholder could, insofar as neither the law nor the relevant shareholder or the proxy
provides for any restrictions or other qualifications. Subject to such restrictions, a proxy may,
even if the admission ticket is not made out in his or her name, exercise voting rights by way of
postal voting or online participation, provided the requirements set out in section 2 (Voting by
post) and/or section 2 (Online participation in the General Meeting of Shareholders) are fulfilled.
For processing reasons, online participation by the proxy is only possible once the Company has
received the relevant declaration of authorization or other proof of proxy authorization, in each
case in due form, and the proxy has been registered in the system on this basis as a person who has
been granted access. Timely registration of the proxy in the system will in any event be ensured
if and as soon as the relevant proxy authorization or the relevant proof has been transmitted to
the e-mail address specified in lit. d) of this section 4 in one of the formats indicated.
b) |
|
Form of proxy authorization |
Pursuant to Section 134 (3) sentence 3 AktG, the proxy authorization must be granted or revoked,
and proof of the proxy authorization to be provided to the Company must be provided, in text form
(Section 126b BGB). The special provisions set out below (see lit. c)) additionally apply where
authorization is granted to proxies designated by the Company. In the event that proxy
authorization is granted to banks, shareholders associations or persons or institutions which have
an equivalent status under Section 135 (8) and (10) AktG, the text form, in derogation from the
above, is neither required pursuant to Section 134 (3) sentence 3 AktG, nor do the Articles of
Incorporation contain a specific provision governing such case. Banks, shareholders associations
and persons which have an equivalent status under Section 135 (8) and (10) AktG may therefore use
forms for the granting of proxy authorization which need only comply with the statutory provisions
governing such case, in particular those contained in Section 135 AktG. Reference is made to the
special procedure pursuant to Section 135 (1) sentence 5 AktG.
19
c) |
|
Proxies designated by the Company, special provisions regarding their authorization |
Within the scope specified below, we offer our shareholders the option to be represented at the
General Meeting of Shareholders by employees designated as proxies by the Company (Company proxies)
who are bound by the shareholders instructions. The Company proxies will exercise their powers
only to the extent that shareholders have previously instructed them to exercise their voting
rights. The proxies designated by the Company are obligated to vote in accordance with the
instructions given to them. The authorization of Company proxies may be granted and revoked, and
instructions to them may be given and amended, by declaration to the Company in text form and also
via the Internet dialogue provided by the Company for this purpose at http://www.sap.com/agm. In
addition to the admission ticket number, the required access data comprise a validation code, the
family name, first name and place of residence of the person in whose name the admission ticket is
made out, and the relevant number of shares, each as printed on the admission ticket. Once
shareholders have entered these access data for the first time, they will receive an access code,
which, together with the admission ticket number and the validation code, allows them to again
access the Internet dialogue for granting proxy authorization and issuing instructions to Company
proxies at a later time, as well as to access the online participation system (see section 3 above
for more detail). Authorizations and instructions to the Company proxies may still be given and/or
modified online during the General Meeting of Shareholders until the commencement of the voting
procedure. Shareholders wishing to authorize the Company proxies and to provide them with the
necessary instructions may of course also use the form on the admission ticket for the General
Meeting of Shareholders to do so. Giving authorizations and instructions to the Company proxies is
still possible at the General Meeting of Shareholders, namely until the commencement of the voting
procedure.
If, besides the authorization for and instructions to the Company proxies, the Company has received
postal votes (see section 2 above), these postal votes will always take precedence; in this case,
the Company proxies will not exercise the authorization granted to them and will not represent the
relevant shares. Equally, the Company proxies will not exercise any authorization granted to them
and will not represent the relevant shares if the relevant shares are represented by another
participant (a shareholder or his/her proxy) who is physically present at the place of the General
Meeting of Shareholders or by way of online participation.
d) |
|
Proof of proxy authorization |
If proxy authorization is granted by way of a declaration made to the Company, no separate proof of
proxy authorization to the Company is required. If, however, proxy authorization is granted by way
of a declaration made to the proxy appointed, the Company may demand to see proof of such
authorization, unless otherwise provided for in Section 135 AktG, i.e. in particular where a bank
or shareholders association is appointed proxy. The granting of proxy authorization may be
proven, for example, by the proxy presenting the document confirming his or her authorization in
due form at the entry controls on the day of the General Meeting of Shareholders, or by (the
shareholder or proxy) sending proof of authorization to the Company in advance. Such proof may be
directed to the postal address or fax number of the Company stated in section 1 for the application
to attend. In accordance with Section 134 (3) sentence 4 AktG, we offer the following means of
electronic communication: the proof of appointment of a proxy may be sent to the Company by e-mail
to: sap-hv2011@computershare.de. It will be ensured that Word, .pdf, .jpg, .txt and .tif documents
sent as e-mail attachments will be taken into account (with the possibility of existing e-mails
being forwarded). The Company is only able to easily and clearly draw the link between proof of
proxy authorization that is sent by e-mail and a specific application to attend if such
authorization or the corresponding e-mail states the family name, first name and address of the
relevant shareholder and, if already known, the admission ticket number. The means of
communication specified above will also be available for granting or revoking proxy authorization
by means of a declaration to the Company, in which case no separate proof is required.
20
If a shareholder appoints more than one proxy, the Company is entitled under Section 134 (3)
sentence 2 AktG to refuse one or more of them.
Shareholders will receive forms which may be used for granting proxy authorization as well as for
granting proxy authorization and issuing instructions to the Company proxies together with their
admission tickets following submission of the application and proof of shareholding in due time and
form. A screen form can also be accessed via the Internet dialogue provided by the Company for
granting proxy authorizations and issuing instructions to Company proxies. A printable form for
granting proxy authorization and, as appropriate, issuing instructions is also available on the
Internet at http://www.sap.com/agm. To facilitate processing, we ask that these forms be used for
granting proxy authorization if proxies are appointed by way of a declaration made to the Company,
including where proxy authorization is granted and instructions are issued to the Company proxies.
Forms for granting proxy authorization and, as appropriate, issuing instructions during the General
Meeting of Shareholders are contained in the voting card pads which are distributed at the entrance
to the General Meeting of Shareholders.
5. |
|
Live transmission of the General Meeting of Shareholders on the Internet |
All shareholders of SAP AG and the interested general public may follow the entire General Meeting
of Shareholders on May 25, 2011 from 10.00 hrs (CEST) live on the Internet. Unrestricted online
access to the live transmission will be possible via the Internet at http://www.sap.com/agm. The
opening by the chairman as well as the speeches by the Co-CEOs will also be recorded and will be
available on the Internet at the address specified above after the General Meeting of Shareholders.
6. |
|
Shareholder rights |
|
a) |
|
Requests for additional agenda items pursuant to Section 122 (2) AktG |
Shareholders collectively holding at least one twentieth of the capital stock or at least 500,000
in total (the latter corresponding to 500,000 shares) may request that additional items be added to
the agenda and made public. Each new item must be accompanied by the corresponding grounds or a
resolution proposal. Such requests must be made in writing to the Companys Executive Board and
must have been received by the Company by 24.00 hrs (CEST) on April 24, 2011. The request may be
sent to the following address: SAP AG, Vorstand, Dietmar-Hopp-Allee 16, D-69190 Walldorf.
Section 142 (2) sentence 2 AktG, which provides that shareholders requesting additional agenda
items must submit proof that they have been holding the shares for at least three months prior to
the date of the General Meeting of Shareholders and that they will continue to hold the shares up
to the date on which a decision on their request is taken, applies mutatis mutandis in accordance
with Section 122 (2) sentence 1 AktG. In this respect, the Company will accept proof that
shareholders requesting additional agenda items have been holding the shares required for the
quorum to be achieved (see above) at least since the beginning (i.e. 0.00 hrs (CEST)) of February
25, 2011 up to the beginning of the day on which the request for additional agenda items is
dispatched. Shareholding periods of third parties will be taken into account in accordance with
Section 70 AktG.
Any additions to the agenda which require publication and were not published in the calling notice
will be published in the electronic version of the German Federal Gazette as soon as they have been
received by the Company and will be forwarded for publication to media which can be expected to
21
publish the information across the entire European Union. Any requests for additional items to be
added to the agenda within the meaning of Section 122 (2) AktG which are received by the Company
once the General Meeting of Shareholders has been called will also be made available on the
Internet at http://www.sap.com/agm and will be communicated to the shareholders as soon as they
have been received by the Company.
b) |
|
Shareholder motions and nominations pursuant to Section 126 (1) and Section 127 AktG |
At the General Meeting of Shareholders, shareholders or their proxies may make applications and
nominations relating to particular agenda items and the rules of procedure without any notice,
publication or other special action being required prior to the General Meeting of Shareholders.
Counter-motions within the meaning of Section 126 AktG regarding the proposals of the Executive
Board and the Supervisory Board on any specific item on the agenda as well as nominations within
the meaning of Section 127 AktG will be made available via the Internet at http://www.sap.com/agm,
including the name of the shareholder concerned, the relevant reasons (which, however, are not
required for nominations) and, if appropriate, a statement by the management if received by the end
(i.e. 24.00 hrs (CEST)) of May 10, 2011 at
SAP AG
Investor Relations
Dietmar-Hopp-Allee 16
D-69190 Walldorf
Fax: +49 (0)6227/7-40805
E-mail: investor@sap.com
and if the remaining requirements with regard to the Companys duty to disclose pursuant to Section
126 and Section 127 AktG are complied with.
c) |
|
Shareholders right to information pursuant to Section 131 (1) AktG |
Under Section 131 (1) AktG, any shareholder (or his/her proxy) must upon request be given
information by the Executive Board at the General Meeting of Shareholders relating to the Companys
affairs, including its legal and business relations to affiliates, the financial position of the
group and the companies included in the group financial statements, provided such information is
necessary in order to make an informed judgment in respect of an agenda item and the Executive
Board does not have the right to refuse to disclose such information. Moreover, in respect of
agenda item 8, the Executive Board, pursuant to Section 293g (3) AktG, must provide to each
shareholder (or his/her proxy) who makes a corresponding oral request at the General Meeting of
Shareholders information relating to the affairs of the Subsidiary referred to in this item to the
extent that they are material in connection with the conclusion of the Agreement.
Further information on the shareholders rights pursuant to Section 122 (2), Section 126 (1),
Section 127 and Section 131 (1) AktG, in particular information relating to additional requirements
above and beyond compliance with the relevant deadlines, is available on the Internet at
http://www.sap.com/agm.
7. |
|
Website offering information and publication of the invitation |
This calling notice for the General Meeting of Shareholders and the information and documents to be
made available pursuant to Section 124a AktG, any requests for additional agenda items within the
22
meaning of Section 122 (2) AktG and other information are available on the Internet at
http://www.sap.com/agm. The invitation, together with the full agenda and the resolution proposals
of the Executive Board and the Supervisory Board, was published in the electronic German Federal
Gazette dated April 15, 2011 and was moreover forwarded for publication to media which can be
expected to publish the information across the entire European Union.
8. |
|
Total number of shares and voting rights |
On the date on which the General Meeting of Shareholders is called, the Company has a capital stock
of 1,227,593,197.00, which is divided into 1,227,593,197 no-par value shares each representing one
vote (information in accordance with Section 30b (1) no. 1 of the German Securities Trading Act
(Wertpapierhandelsgesetz); this total includes the treasury shares held on the date on which the
General Meeting of Shareholders is called, which do not, however, attribute any rights to the
Company in accordance with Section 71b AktG).
Walldorf, April 2011
SAP AG
The Executive Board
23