Region reinforces its role as SAP’s global growth engine
SINGAPORE — SAP Asia Pacific Japan (“APJ”) reported strong earnings growth in Q1 2010, across most markets in the region.
Stabilising local economies and strong customer support lifted Software and Software Related Services revenues for the quarter by 13% (eight percent including Japan) to €265million. New customer acquisition continues to drive SAP APJ’s leadership position in the region widely regarded as SAP’s global growth engine. All growth figures in this release are expressed in non-IFRS constant currency terms and are measured against the previous comparable period.
“We are seeing double-digit growth in most markets across the region, as customers are once again investing for growth. We were very pleased to see average deal sizes increasing, as well asincreased revenue from larger transactions – these two key factors further reinforced our leadership position in the region,” said Steve Watts, President, SAP Asia Pacific Japan.
Watts was appointed President, SAP Asia Pacific Japan in January 2010 and has a 20-year track record of successfully leading global software business operations. He has been with SAP for more than eight years, having previously held the position of Chief Operating Officer, SAP APJ.
SAP Global also delivered a great Q1 2010 and laid a strong foundation for the full year, with non-IFRS Software and Software Related Services Revenue growth of 10% at €1.923 billion, across all key regions. Reported Profit after Tax for the quarter almost doubled to €435 million in non-IFRS constant currencies.
In Q1 2010 key APJ customer wins came from Transportation, Banking and Utilities sectors.
Watts added, “Our priority remains Value Delivery for our Customers. We deeply understand customer needs and they value our long-term relationship with them. We are committed to Helping the World Run Better by making every customer become a Best-Run business.”
“SAP’s global product strategy of “OnPremise”, “OnDemand” and “OnDevice” will continue to help differentiate SAP as the global software industry continues its paradigm shift towards a preference for solutions with shorter time to value, ease of adoption and lower total cost of ownership”
IFRS Financial Data
SAP will discontinue its U.S. GAAP reporting and will only report financial data under IFRS from fiscal 2010 onwards. The guidance provided by SAP for 2010 is based on Non-IFRS numbers that are derived from SAP’s IFRS figures by excluding acquisition-related charges and discontinued activities.
Use of Non-GAAP and Non-IFRS Financial Measures
This press release contains certain financial measures such as Non-GAAP and Non-IFRS revenues, Non-GAAP and Non-IFRS operating income, Non-GAAP and Non-IFRS operating margin, free cash flow, constant currency revenue and operating income measures, as well as U.S. Dollar based Non-GAAP revenue numbers. These measures are not prepared in accordance with U.S. GAAP or IFRS and therefore are considered Non-GAAP or Non-IFRS financial measures. SAP’s Non-GAAP and Non-IFRS financial measures may not correspond to Non-GAAP and Non-IFRS financial measures that other companies report. The Non-GAAP and Non-IFRS financial measures that SAP reports should be considered in addition to, and not as a substitute for or superior to, revenue, operating margin or SAP’s other measures of financial performance prepared in accordance with U.S. GAAP and IFRS.