SAP ANZ Records Strong Growth in 2004

Sydney, AustraliaSAP Australia and New Zealand (ANZ) has recorded year on year product revenue growth of 26% in Australia and 27% in New Zealand, during its financial year, which ended on 31st December, 2004.

SAP’s performance in Australia and New Zealand is consistent with the positive full year results released by SAP AG on 26th January, 2005. Globally, total revenues for the full-year 2004 were €7.5 billion (2003: €7.0 billion), which was an increase of 7% compared to 2003. At constant currencies1, total revenues increased 10% for the year.

Geraldine McBride, Chief Executive Office and Managing Director, said, “In Australia and New Zealand, SAP NetWeaver has proven to be a differentiator in our sales cycles and remains a strategic and important focus for SAP. Success in 2004 was also driven by strong customer satisfaction, expansion in new markets and strong references. Today’s announcement represents the latest step towards the fulfilment of an aggressive plan for growth.”

Major deals with a number of existing and new customers in a wide range of industries contributed towards SAP’s financial growth in 2004, including national retail giant Franklins and South Australian-based communications equipment company Codan Limited – a JD Edwards replacement. Other significant deals included Southcorp and Toyota.

SAP increased its CRM revenue 105% year on year across ANZ, with customers such as the Queensland Government. The existing CRM customer, Komatsu reinvested with SAP in 2004, purchasing mySAP Business Suite, and utilities company Powercor continually refines its SAP model to reflect changing business priorities and improving technology – they are assessing portal-based access using SAP NetWeaver.

In addition, Centrelink purchased SAP’s Public Sector solution to provide accounting controls for the management of debt recovery and SAP NetWeaver for analytical reporting.

In New Zealand, SAP beat Oracle to a major licensing and services contract with The Farmers Trading Group and increased its presence in dairy co-operative, Fonterra, replacing existing Oracle applications.

“There are a number of underlying business drivers for these results, including the growth of our team, further growth in CRM, an over achievement in first year deals in the SMB sector, the development of specialist industry teams in Public Sector and Financial Services and the positive industry and customer reaction to our strategic vision for applications and the underlying infrastructure.”

Small to Midsize Business Market

Robust uptake in the small to midsize business sector (SMB) in 2004 saw revenue grow 148% over 2003 in the ANZ market. SAP ANZ closed deals with 114 new name customers for SAP Business One, including Taylors Wines, MAC1 and Unique Micro Design. SAP Business One is an easy-to-use business management solution for emerging businesses ranging in size from 10 to several hundred employees.

SAP ANZ closed deals with 18 new customers for its mySAP All-in-One solution, including Globe Australia and bioimpedance technology company, ImpediMed. The mySAP All-in-One solution provides SMBs with a pre-packaged solution tailored to unique business needs.

The company selected and recruited 35 new channel partners across ANZ to enable its SMB strategy.

SAP expects to maintain business software leadership in ERP, CRM and SCM across Australia and New Zealand.