SAP ANZ Announces 2005 Third Quarter Financial Results

SAP Experiences One of its Strongest Third Quarters Due to Growth from all Sectors

Sydney, AustraliaSAP Australia and New Zealand (ANZ) today announced financial results for the third quarter, which ended on September 30th, 2005. In accordance with company strategy, SAP ANZ closed deals with new customers across all market segments, achieving a total product revenue growth rate of 25% in Q3, compared to the same period last year.

SAP’s performance in Australia and New Zealand is consistent with the positive full year results, released by SAP AG on October 20th 2005. Globally, total revenues for the third quarter were €2.01 billion, which was an increase of 13% compared to the same period last year. At constant currencies, global software revenues increased 20% compared to the same period last year.

“The third quarter marked another strong performance for SAP as we gained market share against our peer group across all regions,” said Geraldine McBride, CEO and managing director, SAP Australia and New Zealand.

The Royal Automobile Club Victoria selected mySAP™ Customer Relationship Management (mySAP CRM) as its membership and road service product management application.

In the public sector, CSIRO selected the mySAP Business Suite family of business solutions. Queensland State Government selected SAP for an upgrade of its existing SAP environment and the implementation of a whole-of-government HR and Payroll system, which will support more than 180,000 Government employees.

“What sets SAP apart is a clear and defined roadmap for our customers and their future software investment strategies,” continued McBride. “As a company, we are investing wisely – spending on more efficient organic growth, research and development and innovative and collaborative partnerships.”

SAP and Fujitsu formed a strategic ISV reseller partnership for Australia and New Zealand, during the quarter, which will deliver a fully integrated software solution to the local government sector. The solution, which will replace Fujitsu’s current legacy offering, is designed to enable greater financial accountability and improved reporting capabilities.

A new services alliance with the Australian based mining consultancy, COSOL, was announced during the quarter. The partnership is designed to deliver integrated supply chain management solutions to the region’s mining sector. SAP and COSOL will partner to help mining organisations attain productivity improvements through innovation and best practice solutions, which support full supply chain management.

Further partner activity has resulted in SAP securing more than twenty new customers for its SAP Business One solution. Among small and mid-size enterprises, defined as companies with annual revenues ranging from $50million to $1.8billion per annum, SAP closed deals with La Farge Plasterboards, FMP Group (formerly Bendix Mintex), Asics and Rusty Australia (in association with Fujitsu) for mySAP All-in-One, a pre-packaged business solution that is tailored to specific industry requirements.

“The SAP value proposition for small and mid-size enterprises continues to gain momentum, while the largest and most successful enterprises in Australia extend their commitment to SAP’s innovative business solutions,” said Geraldine McBride. “SAP will continue to transform the way that it services key markets with a focus on the needs of customers and an unwavering drive for market leadership and continued growth.”

During the third quarter, many customers finalised preliminary project stages including the Australian division of Diageo, the world’s leading premium drinks business, which went live with mySAP ERP. The project is the first phase of a global roll out of new financial and customer relationship management systems for the company.

Deals with new customers for SAP NetWeaver during Q3, included Turners and Growers in New Zealand and Energy Australia. More than 500 senior IT professionals attended SAP NetWeaver™ Education Days in Sydney, Auckland and Melbourne, reflecting the expanding ecosystem of SAP NetWeaver developers and consultants in Australia and the future role that the technology is set to play in heterogeneous and service oriented IT infrastructures. Globally, SAP NetWeaver revenues grew by 258%, the strongest product related growth area for the company, during the quarter.