SAP Asia Pacific Japan Reports Robust Double-Digit Growth in Q2 2010

August 3, 2010 by SAP News 0

Region sees strong growth across all key markets and business units; exceeds strategic target of 100,000 customers worldwide

SINGAPORESAP Asia Pacific Japan (“APJ”) put in a strong report card for the second quarter and first half of 2010, with solid growth across all key markets and business units in the region.

Software and Software Related Services Revenues for Q2 2010 grew by 18 per cent (eight per cent including Japan) to €307 million. Total Revenues saw a corresponding 12 per cent growth (three per cent including Japan), to €366 million, reinforcing SAP APJ’s position as SAP’s global growth engine.

For the six months ended June 30, 2010, SAP APJ grew Software and Software Related Services Revenues by 16 per cent (eight per cent including Japan) and Total Revenues by 9 per cent (two per cent including Japan). All growth figures in this release are expressed in non-IFRS constant currency terms and are measured against the previous comparable period.

“We are pleased with our strong double-digit growth across the region, generated by increased momentum in all segments of the business. We experienced a significant lift in larger-sized deals, which together with strong growth in mid-sized deals (+50 per cent) and SME (+73 per cent), continued to drive improved margins. This solid performance demonstrates SAP APJ has the right strategy, supported by good execution and strong customer support,” said Steve Watts, President, SAP Asia Pacific Japan.

“Coupled with strategic moves, such as our acquisition of Sybase, Inc. and the introduction of our new version of SAP Business ByDesign in China and India, we are laying a strong foundation for the years ahead. By fully addressing customer needs, we will continue to reinforce our market leadership position across the region.”

Across the key geographic markets, Southeast Asia put in a stellar performance and China continued to be a very important strategic market. Other stand-out growth markets included Australia, Taiwan and Korea. Japan’s results were muted by the recovering economy, but the large enterprise sector performed well – as did Japan’s SME business (+42 per cent).

Globally, SAP also delivered a strong Q2 2010 with non-IFRS Software and Software Related Services Revenues growth of 16 per cent to €2.26 billion. With more than 10,600 deals won in Q2 alone, SAP exceeded its target of 100,000 customers worldwide. Support revenues also increased sequentially by more than nine per cent – testament to the strength of SAP’s Enterprise Support offering.

In Q2 2010, key APJ customer wins came from the Transportation, Utilities and Manufacturing sectors, with SAP APJ winning more than 85 per cent of all competitive deals. SAP’s market leadership was further reinforced by industry analyst reports, showing SAP leading the business intelligence (BI) tools market with a 19.5 per cent market share¹. SAP also grew faster than the market in financial performance and strategy management (FPSM) applications, and now claims a 23.7 per cent market share².

Watts said, “At the heart of our strategy is complete dedication to our customers. We remain committed to Value Delivery and to helping every customer become a Best-Run Business. All of our customers want to be real-time, mobile, sustainable and Best-Run. Our strategy of On Premise, On Demand, On Device, with Orchestration, resonates very well with our customers, and continues to position SAP as the global enterprise software industry leader.”

SAP also announced the completion of its acquisition of Sybase, Inc., to be operated separately under the leadership of current CEO John Chen, remaining focused on its core business. Sybase will continue to execute plans and product strategies around its core database and information management business. Sybase’s expertise in the mobile business will be a key driver for the Sybase and SAP vision for the unwired enterprise. For more details on SAP and Sybase, visit www.sap.com/about/investor/sybase.epx.


¹IDC, Worldwide Business Intelligence Tools 2009 Vendor Shares, Doc #223725, Jun 2010
²IDC, Worldwide Financial Performance and Strategy Management Applications 2007-2009 Vendor Shares, Doc #223923, Jun 2010

IFRS Financial Data
SAP will discontinue its U.S. GAAP reporting and will only report financial data under IFRS from fiscal 2010 onwards. The guidance provided by SAP for 2010 is based on Non-IFRS numbers that are derived from SAP’s IFRS figures by excluding acquisition-related charges and discontinued activities.

Use of Non-GAAP and Non-IFRS Financial
MeasuresThis press release contains certain financial measures such as Non-GAAP and Non-IFRS revenues, Non-GAAP and Non-IFRS operating income, Non-GAAP and Non-IFRS operating margin, free cash flow, constant currency revenue and operating income measures, as well as U.S. Dollar based Non-GAAP revenue numbers. These measures are not prepared in accordance with U.S. GAAP or IFRS and therefore are considered Non-GAAP or Non-IFRS financial measures. SAP’s Non-GAAP and Non-IFRS financial measures may not correspond to Non-GAAP and Non-IFRS financial measures that other companies report. The Non-GAAP and Non-IFRS financial measures that SAP reports should be considered in addition to, and not as a substitute for or superior to, revenue, operating margin or SAP’s other measures of financial performance prepared in accordance with U.S. GAAP and IFRS.