Strong SAP Asia Pacific Japan Q1’08 results demonstrate increased APJ customer desire to evolve and grow in the face of global competitive pressure

April 30, 2008 by SAP News 0

SAP Asia Pacific Japan strengthens its positioning as SAP’s global growth engine in first Quarter of 2008

SingaporeFollowing the momentum of a highly successful 2007, SAP Asia Pacific Japan1 continued to show even stronger strong growth in the first quarter of 2008, announcing 55 per cent Non-GAAP software revenue growth (in constant currency) year-on-year, to €119 million.

Growing Non-GAAP total revenues for Q1 (in constant currency) by 31 per cent year-on-year to €348 million and Non-GAAP software and software related service revenues for Q1 by 36 per cent (in constant currency) to €268 million, SAP Asia Pacific Japan’s role as SAP’s global growth engine has again been clearly reinforced.

“We have had a strong start to the year. Q1 2008 saw considerable growth in the number of major customer investments across all markets.” said Geraldine McBride, President and CEO, SAP Asia Pacific Japan.

“Deals worth €1 million or more accounted for 50% of total software revenues during the quarter. We also experienced tremendous sales growth in NetWeaver, Platform Integration and Governance, Risk and Control solutions during the quarter, with all performing well above expectations.”

“SAP’s SME solution portfolio continues to power market success for SAP in all markets with the BRIC countries of China and India demonstrating even greater market opportunity in 2008. As proof of this opportunity, SAP APJ signed more than 13 customer orders per day. SAP China’s indirect channel partner business growth of 272 per cent in Q1 2008 was a particular highlight.”

“Our excellent results underscore not just the continued vibrancy of the Asian market but also the stronger APJ customer awareness around the need to continually evolve and grow in the face of global competitive pressure” McBride added.

SAP Invests in Asia Pacific Japan Customer Growth

SAP believes the APJ market will continue to embrace its vision of making every Customer a Best Run Business and remains a net hirer of global talent across the Region.

Continued investment in management talent and research & development remains a key focus of SAP’s leadership strategy. The company increased its APJ headcount by more than +1300 Full Time Equivalents (+13.6%) in Q1 ’08. Globally, SAP increased its R&D headcount by more than 2000 people (+15.7%) in Q1’08.

SAP Grows Global Market Share

SAP continued to gain share in the first quarter of 2008, marking the 9th consecutive quarter of market share gains. Based on software and software related service revenues on a rolling four quarter basis, SAP’s worldwide share of Core Enterprise Applications vendors, which account for approximately $37.4 billion in software and software related service revenues as defined by the Company based on industry analyst research, increased to 32.6 per cent for the four quarter period ended March 31, 2008 compared to 31.9 per cent for the four quarter period ended December 31, 2007, and 28.2 per cent for the four quarter period ended March 31, 2007, representing a year-over-year share gain of 7.6 percentage points, of which approximately 4 percentage points came from organic growth. All prior period share numbers have been adjusted to reflect the acquisition of Business Objects.

Selection of Key Customer Wins for SAP Asia Pacific in Q1 008:

ANZ
Corporate Express Australia (Australia)

India
Greaves Cotton Ltd
Bharat Earth Movers Ltd

Japan
Astellas Pharma Inc.
Komatsu Ltd.

North Asia
ChangChun YongXin DiRui Pharmaceutical (China)
Fujian Electric Power Co., Ltd. (China)
Shenzhen Neptunus Medical Electronic (China)
Yantai Wanhua Polyurethane Co., Ltd. (China)
Shenzhen Development Bank (China)
Tianjin Golden Bridge Welding Materials (China)
LG Fashion (Korea)
National Health Insurance Corporation (Korea)
Pegatron Corporation (Taiwan)

South East Asia
Leighton SEA Sdn Bhd (Malaysia)

About SAP
SAP is the world’s leading provider of business software, offering applications and services that enable companies
of all sizes and in more than 25 industries to become best-run businesses. With more than 47,800 customers (excludes customers from the acquisition of Business Objects) in over 120 countries, SAP is listed on several exchanges, including the Frankfurt stock exchange and NYSE, under the symbol “SAP.” (For more information, visit www.sap.com)

(*) SAP defines business software as comprising enterprise resource planning and related applications.

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “outlook,” “intend,” “may,” “plan,” “project,” “predict,” “should” and “will” and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP’s future financial results are discussed more fully in SAP’s filings with the U.S. Securities and Exchange Commission (“SEC”), including SAP’s most recent Annual
Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

Copyright © 2008 SAP AG. All rights reserved.
SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serve informational purposes only. National product specifications may vary.

Footnotes
“SAP Asia Pacific Japan” refers to the company’s operations in Asia, including Japan, Australia and New Zealand.

Use of Non-GAAP Measures
This press release contains certain financial measures such as Non-GAAP revenues, Non-GAAP operating income, Non-GAAP operating margin, free cash flow and constant currency periodover- period changes in revenue and operating income. These measures are not prepared in accordance with U.S. GAAP and therefore are considered non-GAAP financial measures. Our non-GAAP financial measures may not correspond to non-GAAP financial measures that other companies report. The non-GAAP financial measures that we report should be considered as
additional to, and not as a substitute for or superior to revenue, operating margin or our other measures of financial performance prepared in accordance with U.S. GAAP. See the Appendix at the end of the financial section of this press release for additional information regarding the Non-GAAP measures included in this press release and for the reconciliations to the corresponding U.S. GAAP measures.

Core Enterprise Applications Vendor Share
The Company provides share data based on the vendors of Core Enterprise Applications solutions, which account for approximately $37.4 billion in software and software related service revenues as defined by the Company based on industry analyst research. For 2008, industry analysts project approximately 7% year-on-year growth for core Enterprise Applications vendors. For its quarterly share calculation, SAP assumes that this approximate 7% growth will not be linear throughout the year. Instead, quarterly adjustments are made based on the financial performance of a sub set of (approximately 25) Core Enterprise Application vendors.

Financial Information