Asia Pacific License Revenue Growth for Q4 Comes in 17% Higher than the Same Quarter Last Year (excluding Japan, on a constant currency basis)
SHANGHAI, China — SAP Asia Pacific, announced that for the fourth quarter of 2003, total external revenue for the region grew an impressive 14 percent over the same quarter in 2002 on a constant currency basis (6 percent in Euro), excluding Japan . License revenue growth for SAP Asia Pacific was 17 percent higher than the same quarter last year when currency adjusted (6 percent in Euro). Compared to 2002, SAP Asia Pacific’s preliminary external revenue for the full year of 2003 grew by 13 percent on a constant currency basis (6 percent in Euro) and preliminary total software license revenue grew 24 percent on a constant currency basis (14 percent in Euro).
Future Growth in the Region
SAP Asia Pacific believes that based on software revenues, it accomplished its 2003 goals of gaining additional market share and growing 1.5 times faster than the next competitor in the region. On a rolling four quarter basis, Asia Pacific’s share of the market1, including Japan, based on software revenues was 69 percent at the end of the fourth quarter, compared to 61 percent at the end of the fourth quarter 2002, nearly four times that of the next closest competitor.
“SAP’s accelerated regional growth reflects our strong delivery in meeting the needs of our customers,” said Hans-Peter Klaey, president and CEO, SAP Asia Pacific. “Our unwavering customer focus and passion for excellence is what make SAP stand out in the industry and enables our customers to effectively implement IT strategies for sustainable ROI, innovation and growth, despite scarce resources. With strong demand for our SAP NetWeaver™ technology platform, the launch of our latest mySAP™ CRM solution and tremendous momentum in the SMB segment with our SAP Solutions for Small and Midsize Businesses, our pipeline is strong and we are well prepared to take advantage of the expected rebound in the economy in the second half of 2004.
SAP 2003 Highlights
SAP added more than 600 new Asia Pacific customers in 2003 across all key industry sectors in the region, of which more than two-thirds are mid-market customers. SAP installations in APA for 2003 compared to 2004 grew 30.21 percent. SAP Asia Pacific also saw strong growth in the SMB market with key SMB customer wins around the region, including Varroc Engineering Ltd. (India), Emcure Pharmaceuticals Ltd (India) and Dalian Shengnou Foodstaff Co, Ltd. (China).
With its unparalleled support of industry-specific processes, ease of deployment and proven ability to deliver ROI, mySAP CRM has become the CRM solution of choice for businesses throughout Asia Pacific. Key 2003 CRM wins secured include Fonterra (New Zealand), Ilshin (Korea), Voltas (India), and Bank Islam (Malaysia). Industry leaders such as 2001 Outlet (Korea); City Developments Ltd (Singapore); Tata Telecom (India), and Fraser and Neave Holdings Bhd (Malaysia) have chosen mySAP CRM to achieve greater operational efficiency, enhance customer service and achieve fast ROI.
SAP is also gaining momentum in the financial services industry. Banks and financial institutions are adopting SAP’s industry specific portfolio of solutions to gain competitive advantage by managing their enterprises more efficiently and profitably, such as Indonesia’s Bank Niaga, Korea’s Samsung Card, Daegu Bank, and Woori Credit Card, and China’s New China Life Insurance Company and China Everbright Bank. These institutions are recognizing the business benefits that SAP® for Banking and SAP® for Insurance generate for their organizations. SAP’s new partnership agreement with Accenture is enabling both SAP and Accenture to develop and deliver information technology solutions for financial and insurance services providers in Asia Pacific.
2003 brought SAP recognition from a number of Asia’s most prestigious publications and organizations including: Asia Computer Weekly (ACW)—Trailblazers Award, Readers’ Choice for Enterprise Application Integration (EAI), SCM, ERP and CRM; PCQuest (India)—ERP Users’ Choice Award; Computerworld (Singapore & Malaysia)—Readers’ Choice for SCM and CRM; MIS China—Strategic 30 Award; IT&T ERP Award in Australia; Dataquest-IDC Annual Customer Satisfaction Audit in India and the ISO 9001 Awards for High Quality Support Services and being one of the top 30 leading vendors for global IT.
SAP customers also clinched several awards such as CIO 100 Honor Roll, MIS Asia Innovation Award, China Top CIO Award, and Intelligent20 Award. Some of these customers were Xian Janssen Pharmaceutical, China; Chung Nam Watch Co. Ltd, Hong Kong; Bajaj Auto, India; Bank Rakyat Indonesia (BRI), Indonesia; Sabah Electricity Sdn Bhd, Malaysia; and; Jebsen & Jessen SEA, Singapore.
During 2003, SAP announced a number of key investments in the region including expansive development facilities in China and India and the establishment of an APA Shared Services Centre in Singapore. SAP’s Singapore APA headquarters was also awarded Singapore’s International Headquarters designation in 2003. These developments will continue to fuel economic growth and new jobs in Asia Pacific, as well as new SAP solutions designed to meet the demands of customers in APA and the rest of the world. In fact, SAP Asia Pacific headcount, including Japan, increased 14% year-on-year to 3,720 as of the end of 2003
SAP NetWeaver—The Business Software Platform for 2004 and Beyond
The SAP NetWeaver open integration and application platform, which gives customers the flexibility to integrate business processes across heterogeneous systems and the scalability to be prepared for future growth, has received strong commitment from customers and partners across APA. 2003 was a year with strong adoption by customers across the region, and the year closed with more than 100 SAP® Enterprise Portal customers, including over 40 live on SAP Enterprise Portal. 2003 also saw the world’s largest go-live of a customer-developed Java Application on the SAP® Web Application Server for a regional utility customer for 20,000 users.
Fourth Quarter Customer Wins
Following is an overview of some of SAP’s key fourth quarter customer wins:
Linfox, Cement Australia
Dalian Shengnou Foodstaff Co., Ltd, Kunming Yao Long Electric Power
Esprit, China Resources Retail Group Co., Ltd
Emcure Pharmaceuticals Ltd, Torrent Pharmaceuticals Ltd, Gas Authority of India
Bank Niaga; PT. Telekomunikasi Indonesia
Korea Yakult Co., Ltd., Hansol Paper Co. Ltd.
Fonterra; DB Breweries Limited
Power Sector Assets and Liabilities, Bangko Sentral ng Pilipinas
CityGas, Singapore Press Holdings
Advanced-Connecte, King Car
CP 7-Eleven, Patra Ceramics, CAT Telecom PCL, Thai President Foods PCL