SAP ANZ Reports Full Year Results for 2005

SAP Records Positive Results With SAP Safe Passage, SAP NetWeaver™ and SMB Strategies

Sydney, AustraliaSAP Australia and New Zealand (ANZ) today announced full year financial results for its 2005 fiscal year, which ended on 31st December, 2005. The company recorded a year on year product revenue growth rate of 20 per cent (in Euro), closing the year with significant wins over Oracle Corporation and its acquired subsidiaries. SAP ANZ secured new wins in the fourth quarter with Telikom PNG Ltd., Rio Tinto, ETSA Utilities, Hanson Australia (Holdings) Pty Ltd., Collex Pty Ltd. and Douglas Pharmaceuticals (New Zealand).

The ANZ results are in line with the positive full year results released by SAP AG on January 25th, 2006. Globally, total revenues for 2005 were €8.51 billion (2004: €7.5 billion), which was an increase of 13 per cent compared to 2004. At constant currencies1, total revenues increased 12 per cent.

“2005 represented another year of major achievements for SAP Australia and New Zealand,” said Geraldine McBride, CEO and managing director, SAP Australia and New Zealand. “We saw considerable interest in the SAP Safe Passage program and closed deals with new customers that will see them transition away from Oracle to SAP. We extended our commitment to small and mid-size enterprises, innovating within our distribution network and working with ISVs to develop next generation business solutions to specific industry segments”.

“Significantly, existing customers continued to invest in the mySAP Business Suite and SAP NetWeaver to drive new efficiencies and transformation within their organisation. This reflects the attractiveness of SAP’s strategic roadmap and our ongoing commitment to customers. From an internal perspective, we made strides in our efforts to become an employer of choice and to create a high performance working environment”.

Increasing SAP’s Relevance to Small and Midsize Enterprises
SAP and partner BDO Kendall overcame stiff competition to win Consolidated Rutile Limited (CRL) as a new customer for the mySAP™ All-in-One solution. CRL employs more than 220 people and has annual operating revenue of more than $75 million. Supply Chain Consulting continued its mySAP All-in-One sales momentum during the fourth quarter, closing major deals with Meat and Livestock Australia and Techtronic Industries Australia incorporating Ryobi Australia. In Melbourne, the TIC Group selected mySAP All-in-One and Extend Technologies following an in-depth evaluation process, which included SAP’s major competitors in the mid-enterprise space. Extend Technologies customers, GrainCorp Limited and Queensland Cotton, signed agreements that will see them upgrade to mySAP All-in-One technology.

SAP closed deals with more than 160 new customers for the SAP Business One solution. Fourth quarter deals included Grinders Coffee House (implemented by SAP partner, Vialogic), Tasmanian Alkaloids (Inecom), Huon Aquaculture (Axsys), Peter’s of Kensington (Accumen), Beston Parks Management (Advanced Business Consulting), Parasol Emt., (Attkey Computer Solutions), Stauff Corporation (Evolution Software Services), Rail Infrastructure Corporation (Forsythes IT), Christian Outreach (GroupTech) and Unistraw (Skytec). SAP increased its SME customer base by 45 per cent in Australia and New Zealand based on a year on year comparison. The SME division is the fastest area of revenue growth for SAP ANZ.

SAP Safe Passage – Migrating Away from Uncertainty

SAP Australia and New Zealand closed two SAP Safe Passage deals during the financial year, including an SAP for Retail win with Foodstuffs South Island Limited (FSSI) in New Zealand. FSSI will transition away from legacy J.D. Edwards applications for financial management to mySAP ERP.

SAP Safe Passage was launched in January 2005; it is available to PeopleSoft, J.D. Edwards and Siebel customers in Australia and New Zealand that face uncertainty arising from the acquisition of their software provider by Oracle. Under the terms of the program, SAP provides support and maintenance for existing investments allowing customers to migrate to SAP at their own pace.

Transformation and Innovation with SAP NetWeaver™
During 2005, SAP ANZ successfully executed on its SAP NetWeaver strategy, gaining significant uptake for the technical platform. SAP NetWeaver is the application and integration platform underpinning SAP solutions, providing proven technical capabilities for integration between non-SAP applications whilst delivering a world class environment for custom development. SAP NetWeaver enables an Enterprise Services Architecture, SAP’s blueprint for service-oriented business solutions.

In Australia and New Zealand, customers are reversing decisions to go with best of breed technical solutions, reflecting the customer trend away from best of breed application purchases, which has occurred in recent years. In Australia and New Zealand, SCA Hygiene (previously part of Carter Holt Harvey) is implementing the process integration component of SAP NetWeaver to improve visibility and integration between its logistics and inventory systems across its supply network. The efficiencies enabled by SAP technology are expected to result in savings of more than over $200,000 per annum.

A growing number of independent software vendors (ISVs) are developing modular software solutions and innovative SAP xApp composite applications on the SAP NetWeaver platform. The ISV agreement between SAP and Fujitsu Australia and New Zealand has resulted in new business with six existing Fujitsu local government customers, since the announcement of the new solution in October.

In 2005, more than 270,000 SAP NetWeaver users were added to the existing SAP NetWeaver user base across ANZ. SAP NetWeaver provides the infrastructure layer to some of the Federal Government’s largest public service intranet portals. The South Australian energy distributor, ETSA Utilities, will deploy SAP NetWeaver Java and Adobe components for a customer facing website to cater for new supply requests, changes, quotes, appointment booking and job enquiry/status tracking.

Success with customers, partners and ISVs has added to the ecosystem of SAP NetWeaver. Consequently there has been growth in registrations on the SAP Developer Network, a community for developers and integrators working with SAP NetWeaver and SAP xApps, which today has more than 4,500 registered users, representing approximately 50 per cent of Australia’s total population of Java developers.