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SuccessFactors and The Cloud Lars Dalgaard CEO, President and Founder

SuccessFactors and The Cloud Lars Dalgaard CEO, President and Founder. 1. 1. 1. 1. Safe Harbor Statement. “Safe harbor” statement under the Private Securities Litigation Reform Act of 1995:

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SuccessFactors and The Cloud Lars Dalgaard CEO, President and Founder

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  1. SuccessFactors and The Cloud Lars Dalgaard CEO, President and Founder 1 1 1 1

  2. Safe Harbor Statement “Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are SuccessFactors’ current expectations and beliefs. These forward-looking statements include statements about anticipated revenue, deferred revenue and cash flow from operations for the third quarter and expected revenue for the fourth fiscal quarter of 2009 and the full fiscal year 2009. Factors that could cause actual results to differ materially with respect to our anticipated results for the third quarter include the fact that our third quarter financial statement review process is ongoing, and accordingly, actual results are preliminary and are subject to further review as part of our quarterly financial statement review process, and accordingly, we cannot assure you that the final amounts will not change materially as a result of our quarterly review process. Factors that could cause actual results to differ materially from those contemplated by the other forward-looking statements include: our ability to continue to experience high customer renewal rates; whether customers renew their agreements for additional modules or users; levels of new customers; pricing pressures; the uncertain impact of the overall global economic slowdown, including on our customers, prospective customers and partners, renewal rates and length of sales cycles; the fact that our market is at an early stage of development, and it may not develop as rapidly as we anticipate; competitive factors; outages or security breaches; our ability to develop, and market acceptance of, new services; our ability to continue to sell our services outside the HR area; our ability to manage our growth; our ability to successfully expand our sales force and its effectiveness; whether our resellers and other partners will be successful in marketing our products; our ability to continue to manage expenses; the impact of unforeseen expenses; and general economic conditions worldwide. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. Further information on these and other factors that could affect our financial results is included in the section entitled “Risk Factors” in our Annual Report on Form 10-K for 2008 and in our most recent report on Form 10-Q and in other filings we make with the Securities and Exchange Commission from time to time. These documents are or will be available in the SEC Filings section of the Investor Relations section of our website at www.successfactors.com/investor. SuccessFactors, Inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law. 2 2 2 2

  3. 89% Greenfield Opportunity

  4. Successful teams execute. SuccessFactors Proprietary & Confidential

  5. no matter what. SuccessFactors Proprietary & Confidential

  6. And in times of crisis, SuccessFactors Proprietary & Confidential

  7. execution is the difference, SuccessFactors Proprietary & Confidential

  8. between success and game-over. SuccessFactors Proprietary & Confidential

  9. the seminal question is SuccessFactors Proprietary & Confidential

  10. how do you get your whole company to execute the right actions, at the right time, to produce the right results? SuccessFactors Proprietary & Confidential

  11. every day. SuccessFactors Proprietary & Confidential

  12. Welcome to the new era of Business Execution SuccessFactors Proprietary & Confidential

  13. Business Execution Software Business Execution Software is a new category of applications that align, arm, and incite teams to take actions that drive superior business results. SuccessFactors Proprietary & Confidential 14 14

  14. a very quick history

  15. SFSF Pioneered Employee Performance Mgmt OLD NEW 2001

  16. SuccessFactorsPioneeredEPM $15.9B 11% 89% Greenfield Opportunity

  17. SuccessFactorsPioneeredEPM 30% Rest of Market

  18. Natural Extension of our Solution Suite It’s Working How We Do It 25% of our customers already use us to manage execution Strategic Selling Innovation Increasing engagement with the C-Suite “Militaristic”, McKinsey-esque Training Transaction sizes growing HR + CXO Business Execution Transformation People Performance Automation HR Business Alignment People Performance 18 18 18 18

  19. BizX Doubles Our TAM Business Alignment $20.0Billion Market Enterprise $45 130M * $35 = $4.6bn (employees) ($/seat/year) $40 $35.9 SMB 150M * $75 = $11.3bn $35 (employees) ($/seat/year) $30 2.3x Size $20.0 $25 $bn People Performance $15.9Billion Market $20 $15 Enterprise 130M * $45 = $5.8bn $10 (employees) ($/seat/year) $15.9 $15.9 SMB $5 150M * $95 = $14.2bn Only 11% Penetration (employees) ($/seat/year) $0 People Performance TAM Business Alignment TAM Note: Potential market size for Business Alignment is based solely on company analyses. Assumes a substantial majority of the currently estimated worldwide work force as users. Assumed price per seat per year is significantly higher than current average per user rates for many customers.

  20. Able to make $ on innovation $ from Old $ from New Traditional 95% 5% SuccessFactors 46% 54%

  21. BizX Impact Across the Board Bridge the gap between Strategy and Execution Execute top and bottom line Increased Time Spent on Strategic Priorities Performance Change Increased Project Completion Faster Communication of Strategy Change AVG AVG AVG AVG 5.5% 2.8% 13.8% 1wk HIGH HIGH HIGH HIGH 40% 5.4% 67% 8wk 21 Source: Independent consultant research findings. Study sampled 527 customers .

  22. Benchmarking the SaaS Category Leaders Q209/Q208 Revenue Growth 44% Omniture Salesforce.com Concur NetSuite Business Execution Web Analytics Sales Force Automation Expense Management ERP

  23. Year to Date SFSF Performance

  24. Since Nov2007 IPO SFSF Performance

  25. Cash Profile • Cash flow positive first 3 years • 100% organic growth • 100% renewals • Accelerating CF Cash Flow Q4’08Actual May ‘01 ‘03 Q3’09Goal Investment 25 25 25 25 25

  26. Consistently Delivering in the Toughest Markets ‘09 Accelerating Growth 29% 30% 20% 17% 10% 0% Q2 vs. Q1 Q3 vs. Q2 Bookings = Rev + Change in Deferred Don’t let a good recession pass you by • Continuing to achieve milestones • ~$50M in bookings in Q3 – biggest quarter ever • Big deals are back for SuccessFactors, globally • Q2 09: 49 deals $200K +, 4 deals $500K+ • Q3 09: 62 deals $200K+, 11 deals $500K+, 4 >$1M+ deals • Continued strong renewals • Dollar renewals above 100% and unit retention above 90% • BizX Launch • Launched 572 company CEO and customer impact study • Resulting in BizX positioning, proving ROI in $ Millions • Doubled our TAM to $36B • Released 3 impactful new products • Launched Employee Central, BizX Recruiting and Goals Metrics Navigator 2.0 • Expanded world-class management team • Ex HP VP Software Europe: ~$300M business • Ex Gap VP HR Operations: ~100,000 people, CPA, MBA 26 26 26 Note: Q3 2009 figures reflect mid-point of range disclosed in prospectus supplement

  27. Growth and Execution 8 Out of 8 Quarters Since IPO We Have Exceeded Consensus Street Revenue and EPS Expectations 8 Out of 8 Quarters Since IPO Gross Margin Revenue 25% Incre-mental Uplift 78% $38.5 99% Total Change 53% $19.2 We Have Exceeded Consensus Street Revenue and EPS Expectations @IPO Q4'07 Q3'09 @IPO Q4'07 Q3'09 Non-GAAP Operating Margin Operating Cash Flow 0% $3.4 109% Incre-mental Uplift $15.7mm Uplift (109%) ($12.3) @IPO Q4'07 Q3'09 @IPO Q4'07 Q3'09 Note: Based on non-GAAP metrics. Q3 2009 figures reflect mid-point of range disclosed in prospectus supplement

  28. Acceleration Across All Fronts Market Mid-market5% SMB, Channels, Intl.54% NA Enterprise 46% NA Enterprise 95% Other Modules7% Product Performance & GoalManagement46% OtherModules54% Performance & GoalManagement 93% Upsell 9% Upsell Upsell 41% New Customers 59% New Customers 91% As a % of New Subscription Bookings 2003 Q3 2009 Geographies EMEA, APAC, LATAM26% North America 100% North America 100% North America 74% Note: Q3 2009 figures reflect preliminary estimates

  29. A SaaS Success Story At IPO June 2008 Today 5.4M+ 2.0M+ 3.7M+ Users 2,850+ 1,400+ 1,950+ Customers 420K 85K 300K Largest Deployment 60+ 60+ 60+ Industries 185+ 156+ 180+ Countries 31 Languages 18 22

  30. Americas EMEA APAC Revenue Growth Rate 1H08-1H09: 42% Revenue Growth Rate: 1H08-1H09: 99% Revenue Growth Rate 1H08-1H09: 63% North America Customer Growth Rate: [ ]% EMEA Customer Growth Rate: [ ]% Asia Customer Growth Rate: [ ]% Latin America Customer Growth Rate: [ ]% Major US Automaker Top Retailer Top Financial Services Company (Grupo Folha) (Grupo Folha) Continued Global Traction in Q309 Adding to Blue-Chip Customers Aroundthe World Adding Important Global Customers New locations, past 12 months Copenhagen New York, NY 8,500 Users London San Francisco Seoul San Mateo Beijing London, United Kingdom 5,000 Users Wuxi, China 250 Users Dublin Tokyo New York, NY 10,000 Users Arkansas Espoo, Finland 6,200 Users Bentonville AR 300,000 Users 300,000 Users Chuo-ku, Japan 17,500 Users Atlanta, GA 75,000 Users Hong Kong Boston BENTONVILLE Munich, Germany 420,000 Users Arizona ATLANTA Florida Chuo-ku, Japan 17,500 Users Shanghai Munich 75,000 Users Wuxi, China 250 Users San Francisco, CA20,000 Users London, United Kingdom 5,000 Users Espoo, Finland 6,200 Users New York, NY 8,500 Users Munich, Germany 420,000 Users Bangalore Manila Paris Puerto Rico Zurich Gurgaon, India 38,000 Users Mexico City Sao Paulo, Brazil 2,300 Users San Francisco, CA20,000 Users Rio de Janeiro San Salvador Rio de Janeiro, Brazil 60,000 Users Gurgaon, India 38,000 Users Singapore Lima Rio de Janeiro, Brazil 60,000 Users Jakarta Sao Paulo Santiago Sydney, Australia 250 Users Melbourne Buenos Aires Sydney Sydney, Australia 250 Users Sao Paulo, Brazil 2,300 Users

  31. Scaling Within Customers Frictionless Adoption Expanding Suite Growing Upsell Rising Deal Size Shorter Sales Cycles Able to make $ on innovation $ from Old $ from New Traditional 95% 5% SuccessFactors 46% 54% 31 31

  32. Organizations of All Sizes Need to Execute 2,850+ 115+ 35+ Empresa Folha de Manha S.A. 2 Major US Automaker Leading retailer One of the world’s largest PPD Development LP retailers * > 300,000 users * > 25,000 to 50,000 users > 10,000 to 25,000 users > 3 to10,000 users Cumulative Customers 12 Top 2 Bottling Co. * * Leading * financial services company > 50,000 to 300,000 users Note: * Placement represents total employee base.

  33. Strategy • Execution • Results PeoplePerformance BusinessAlignment MetricsNavigator What’s the top performer retention rate for my entire team? Is Carla managing out low performers? Traditional data output isuseful but difficult to navigate Org Charts are intuitive, but provide limited operational data and insight 33 33

  34. SuccessCloud

  35. Delivering the Next Generation of SaaS Partner Applications BizAnalytics DataConnect SuccessFactors Core Apps AppConnect Tenant A Tenant B Tenant C SuccessCloud Innovative Dynamic Approach TENANT B TENANT A TENANT C Multi-Tenant Inefficient scaling Most Scalable Most Secure Most Efficient 1,000 servers 1.5 million users Shared infrastructure Best in Class 150 servers 5.4 million users Single Tenant 35 35

  36. Close the feedback loop on execution People Performance Employees’ Daily Work SuccessFactors External Apps Right Results Business Alignment Results Take action, drive necessary changes Track progress on execution SuccessFactors helps you cultivate an aligned high performing organization, and then employees use other tools to efficiently do their job SuccessCloud closes the feedback loop; this ensures execution is tracked and managers can make informed decision Realign and refocus the organization of executing strategy. Continuous refinement and improvement results in business execution excellence

  37. Move to 360° insights into your business SuccessFactors Core Apps Integration Partners SuccessCloud • Ensure organization is aligned to corporate objectives • These are leading indicators of success • Across all aspect of your business. • Focus on a specific business function • Increase efficiency • Track progress and results Combining leading and lagging indicators to provide 360 Business Insights Relevant insights available at every level in organization drive informed decisions

  38. HRIS & ERP Security Integration (SSO) Web Services SuccessCloud Execution through integration Social Applications Learning Systems Web Services Web Services SuccessFactors Core Apps Application Provisioning Sales & Support Employee Information Systems Partnership Positioning Integrations with industry leading application providers across all dimensions of your business - HRIS, ERP, Sales, Support, Security and Learning Management

  39. Cloud API

  40. Cloud API to SuccessFactors Data Mapping Mapping done in Cast Iron One Time

  41. Migrated data in SuccessFactors

  42. How BizX Works • Strategy • Execution • Results PeoplePerformance BusinessAlignment GoalManagement file://\\Ibsfs003\supermanfo2\Roadshow Presentation\George Alternative\Rider\How BizX Works diagram.vsd[FOR BOTTOM DIAGRAM – PAGE 2] 42 42 42 42 42

  43. Business Execution Software SuccessFactors Proprietary & Confidential 14 14

  44. BizX $ Impact for an Actual Customer Business Alignment People Performance Measurable $ ROI 44 44

  45. thank you!

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