SAP Asia Pacific Announces Strong Q2 Financial Results

July 18, 2003 by SAP News 0

Licence Revenue Growth for Q2 in the Region (excluding Japan) comes in 33% Higher than the Same Quarter Last Year

SingaporeSAP Asia Pacific, announced that for the second quarter of 2003, total external revenue for the region (excluding Japan) grew 9 percent. License revenue growth was 33 percent higher than the same quarter last year.

Despite SARS, key SAP markets, including Singapore, China and Taiwan saw license revenue growth in Q2 over the same period last year. These markets experienced growth in the second quarter over the same period last year. SAP Australia and New Zealand (ANZ), Korea and Indonesia also saw license revenue growth.

“In a tough market environment, SAP’s accelerated regional growth reflects our strong delivery and unwavering customer focus. We’ve seen an upward trend for increased Asia Pacific customer retention and acquisition,” said Hans-Peter Klaey, President and CEO, SAP Asia Pacific. “Our customer strategy focuses on execution excellence with a major contribution to business fundamentals. SAP is helping businesses in the region develop and implement IT strategies for sustainable ROI and growth through innovation despite scarce resources,” added Mr. Klaey.

SAP’s Regional Business and Customer Momentum
SAP added 85 new customers in the second quarter across all key industry sectors in the region. In the second quarter there were significant customer wins across industries from steel (China Iron and Steel Group, China), to banking (China Minsheng Banking Corporation, China), to retail (PT Mitra Adiperkasa, Indonesia), and to the public sector (Australian Taxation Office, Australia; National Healthcare Group, Singapore).

Mr. Klaey further elaborated on SAP’s business momentum in the region, “This is an acknowledgement of SAP’s deep domain expertise and specialized industry solutions. Our growth in the region was also driven by the strong execution of SAP’s SMB strategy over the first half. This strategy, focused on local solution development to meet specific SMB needs in vertical sectors, is already paying off with 30 percent of total second quarter customer wins in the SMB space.”

SAP’s key SMB customer wins in the region include Hualong Electronics (High Tech, China), Firestone (Jewellery/Precious Metals, India) and Bureau of the Crown (Property, Thailand).

Future Growth in the Region
SAP is on track to reach its goal in 2003 to grow 1.5 times faster than the next competitor in the region and improve profit margins in Asia Pacific. Over the next three years, SAP sees Greater China driving IT spending, contributing up to 43 percent of Asia Pacific total revenues, excluding Japan. Korea and India will contribute the same share as ASEAN.

Second Quarter Customer Wins

Following is an overview of SAP’s key second quarter customer wins.

Australia

Comalco, Australian Wheat Board, Australian Taxation Office, Department
of Defence
New Zealand Turners & Growers, The Timber Management Company
Korea Samsung Engineering, Lotte Shopping
China Capital Iron and Steel Group, China Minsheng Banking Corporation, China
Eastern Airlines, Shanghai Pudong Bank
Hong Kong ASAT Holdings Limited
Taiwan Fuh Hwa Holdings, Presidents Chain Stores, ATLM Inc.
Singapore National Healthcare Group
India Managalore Chem, Bharat Heavy Electricals, ABB India, Sundaram Fastners,
Hero Cycles
Thailand Communication Authority of Thailand, Bank of Thailand, Bureau of the Crown
Property
Indonesia Mitra Adiperkasa