SAP Asia Pacific Announces Robust Q2 Performance and Six Months Results

Product Revenue Growth for Q2 in the Region (excluding Japan) is 23% Higher Compared to the Same Quarter Last Year

SingaporeSAP Asia Pacific, announced that for the second quarter of 2004, total external revenue for the region (excluding Japan) grew an impressive 20 percent over the same quarter in 2003 on a constant currency. Compared to the second quarter of 2003, product revenue growth was 23 percent higher while service revenue grew 14 percent in constant currency. Further, for the first six months of 2004, SAP’s total external revenue increased by 15% on a constant currency basis, while product revenue surged by 17% (constant currency) and service revenue by 9 percent.

As the business and economic environment in the region improved in 2004, most SAP markets in the region including Australia, New Zealand, China, India, and Thailand registered significant growth during the first six months of 2004. The growth in the Asia Pacific markets has largely been driven by SAP’s success in the midmarket segment underscoring the success of its Volume Business model.

The first half year saw continued growth with over 280 new names added to the growing list of Asia Pacific customers. Growth in the SMB space came especially from Australia, China and India. Our two-tier approach with mySAP All-in-One and SAP Business One was critical in the success of the SMB strategy both in delivering the right industry solution at the right price and short implementation timeframes to customers and key in our micro-vertical channel partner strategy approach.

“As business sentiment in the region improved this year, SAP Asia Pacific has emerged with a stellar performance. The engine of growth specifically over the past six months, has been driven by our midmarket and volume business model. 2004 is the year we execute on our strategy and broaden our footprint in this high potential, high volume market. Supporting this is our strategically selected network of channel partners by industry, all of whom share our commitment to support small and midmarket companies across Asia Pacific,” said Hans-Peter Klaey, President and CEO, SAP Asia Pacific.

Winning the Midmarket with Best Practices
A growing number of midmarket companies in Asia Pacific including Rakon (Australia); Sparkice (China); Chien Luen Industries (China); Coship Electronics (China); Orchid Pharmaceuticals (India); PT AJBS (Indonesia); and PT Belfoods (Indonesia); are already enjoying tangible benefits from SAP Best Practices. SAP Best Practices help ensure a consistent implementation approach from software evaluation and project planning to deployment and training. Companies applying the SAP Best Practices, reduce implementation costs and expedite returns on investment. SAP Best Practices is a powerful platform for SAP and its partners to package competitively priced industry-specific solutions for both new and existing midmarket customers.

Mr. Klaey said, “The midmarket segment is a very significant market for SAP. SAP Best Practices is targeted at the mid-sized company that wants a customer-centric industry solution deployed as quickly as possible. As companies across Asia Pacific leverage emerging business opportunities, they recognize that it is critical to partner with solution providers that can deliver a quick return on investment and bring industry best practices to meet their needs now and for the future. To this end, SAP and its partners have proven that it has the solutions and services that help our customers grow and innovate.”

A recent study of 192 companies worldwide by the Ludwigshafen University of Applied Sciences found that SAP Best Practices reduced overall project risk by 71 percent, project costs by 20 percent, and total cost of ownership by 11 percent. SAP Best Practices comprise proven implementation tools, configurations and methodologies—a knowledge base of documented business and technical scenarios from more than 30 years of successful deployments of SAP software solutions for organizations of all sizes and industries.

Q2 Customer Wins across All Industries

SAP added over 280 new customers from large to small and midsize enterprises
in the second quarter across all industry sectors in the region. New wins include

  • Airlines – Jet Airways (India)
  • Automotive – Cixi Zong Seng Motorcycle (China); GM Daewoo
    (Korea); Silverstone Berhad (Malaysia)
  • Consumer Packaged Goods – Hayco Manufacturing (Hong Kong);
    Lakson Tobacco (Malaysia); Nexen Corporation (Korea); Hwee Seng Electronics
    (Singapore); Matinfor Esthetics International Co. (Taiwan); Chumporn Palm
    Oil Industry Public (Thailand)
  • Financial Services – National Australian Bank (Australia);
    Bank Mandiri (Indonesia)
  • Hi-Tech & Electronics – Willas-Array Electronics (Hong
    Kong); DongbuAnam Semiconductor (Korea); Mitsuiwa (Singapore)
  • Healthcare – Govan Industries (Australia); St. Luke Medical
    Center (Philippines)
  • Pharmaceuticals – Wing Keung Medicine (Hong Kong); Zandu
    Pharmaceuticals (India)
  • Retail – Pt Sari Husada (Indonesia); DKSH Corporate Shared
    Services (Malaysia); Abico Ability Enterprise (Taiwan); Kriang Thai Wattana
    Co. Ltd (Thailand)
  • Utilities – Shanghai Municipal Electric Power (China) and
    Chongqing Electric Power Corp (China)