New SAP Innovation Strategy Pays Dividends

Snabe Mc Dermott SAP
Photo: SAP

Some 3,700 shareholders and guests attended the 26th SAP Annual General Meeting of Shareholders at the SAP Arena in Mannheim, Germany. The dividend was increased to 85 euro cents per share for 2012. SAP stock traded at €58.42.

In his address, co-CEO Bill McDermott reported that SAP was well positioned and ready to capture the future. The new strategy the company devised in 2010, in which it set out to make the world run better and improve people’s lives, was moving full speed ahead. Today, SAP customers represented 80 percent of the most valued brands in the world.

SAP strategy: mobile, in-memory and cloud computing

SAP’s innovation-led strategy focuses on mobile, in-memory computing, and the cloud. “With these innovations, we are doubling our addressable market to 230 billion dollars by 2015,” McDermott said. McDermott also highlighted the acquisition of Sybase and SuccessFactors, and the outstanding role of SAP HANA. “SAP HANA is now the fastest-selling business software product in history,” he said. “It took over 18 years for SAP to reach 400 million euros in revenue. It took HANA only 18 months to get there.”

Next page: Success through speed and innovation

Co-CEO Jim Hagemann Snabe described SAP’s successful performance over recent years. Total revenue had increased by 53 percent between 2009 and 2012, and operating profit by over 70 percent. The price of SAP stock had risen by around 90 percent up to the close of this year’s first quarter, and the number of customers has doubled in the last three years. “The two reasons for our success were speed and innovation,” Jim said.

Today, SAP is bringing innovations to the market much faster: “Since 2010, we have radically changed the way we build software,” Hagemann Snabe explained. “That has made us almost twice as fast compared to 2010.”

The benefits of wise investment

SAP had invested in the right trends, which had also benefited its core business. “SAP HANA makes our core business faster,” Hagemann Snabe said. “The cloud makes it simpler. And our mobile solutions make it more attractive.” This meant that SAP had the most advanced portfolio in its industry for companies of all sizes.

On behalf of the SAP Executive and Supervisory Boards, Jim Hagemann Snabe proposed a dividend to the shareholders of 85 euro cents per share for 2012, which, leaving the special anniversary dividend aside, was an increase of 10 euro cents or 13 percent.