SAP Asia Pacific Japan Reports Record Growth in Q4 2010

Q4 2010 marks the best quarter in the history of SAP; APJ Region continues its strong double-digit growth as SAP’s global growth engine

SINGAPOREThe fourth quarter of 2010 marked the best quarter in the history of SAP – with a record growth of 35 per cent (25 per cent at constant currencies), to €1.5 billion in Software Revenue for SAP worldwide. Full-year 2010 non-IFRS Software and Software Related Services Revenue exceeded company guidance, with an increase of 20 per cent (13 per cent at constant currencies).

SAP Asia Pacific Japan (“APJ”) turned in an equally solid result for the quarter, with strong double-digit growth across key markets and business units. Software and Software Related Services Revenue for Q4 2010 grew by 18 per cent (26 per cent excluding Japan) to €424 million. Total Revenue saw a corresponding 17 per cent growth (23 per cent excluding Japan), to €492 million.

For the 12 months ended December 31, 2010, SAP APJ grew Software and Software Related Services Revenues by 13 per cent (21 per cent excluding Japan) and Total Revenues by nine per cent (16 per cent excluding Japan). All APJ growth figures shown above are expressed in non-IFRS constant currency terms and are measured against the previous comparable period.

“The fourth quarter of 2010 was the biggest software sales quarter in the history of SAP –an accomplishment that all of us at SAP can take pride in. With a strong finish to the year, we are confident that we are delivering to our customer needs: thought leadership, innovation, value delivery and choice – from a company they trust. Our strategy of focusing on our customers by delivering value and innovation is working.” said Steve Watts, President, SAP Asia Pacific Japan.

“SAP APJ also put in a very solid performance in Q4 2010 – reinforcing our role as a key growth engine for SAP globally. We saw strong double-digit growth in our key markets and across all lines of business. In particular, the Business Analytics solution set performed exceptionally well, with the launch of several exciting new offerings including the in-memory based High-Performance Analytic Appliance (SAP HANA). Q4 2010 was also our best ByDesign quarter ever; we are seeing exponential customer growth and a strong and growing pipeline.”

In Q4 2010, China remains an important market and a major focus of SAP’s growth strategy. With the acquisition of Sybase, the leader in mobile and database business in China, SAP is seeing a tremendous growth opportunity in China, which currently boasts 750 million mobile users. Other key markets in the region, including Australia, India, Korea, Hong Kong, Taiwan and Southeast Asia, also performed well.

In Japan, SAP’s performance continued to be impacted by local economic conditions, but despite the challenging environment SAP Japan outperformed the competition in Q4 2010 with strengthening momentum. Key customer wins in the region came from the Utilities, Process (Oil and Gas) and Public Sector, with SAP APJ winning most competitive deals in Q4 2010.

SAP also provided a global outlook for the year ahead, with full-year 2011 Non-IFRS Software and Software Related Services Revenue expected to increase in the range of 10 to 14 per cent at constant currencies. This increased outlook arises from expectations that customers are starting to invest strategically in IT again.

Watts said: “Customers are looking to grow again. They are coming to us to gain better insights, make better decisions, operate more efficiently and become more agile. Our innovation pipeline is creating additional confidence that SAP is in the best position to help them ‘Run Better’.

We plan to deliver the leading platform for business mobility and will continue to invest in our market leading on-demand software. At the same time, we will continue to enhance our leadership in on-premise software, helping our customers strengthen their core business, using key innovations like in-memory technology, mobile solutions and advanced business intelligence.”

Globally, SAP also released its preliminary report on greenhouse gas (GHG) emissions for 2010. The company’s worldwide GHG emissions for 2010 totaled 430 kilotons, a four per cent decrease from the 450 kiloton level in 2009. In its third year of consecutive reductions, SAP has cut GHG emissions by 24 per cent from its peak levels in 2007, putting the company well on track to achieving its target of reducing emissions to 2000 levels by 2020.