Strong Start to 2011 with SAP Asia Pacific Japan Recording 31% Software Revenue Growth

Q1 2011 financial results evidence continued momentum from 2010; In-Memory, on-demand and mobility gaining traction with APJ customers

SINGAPORESAP Asia Pacific Japan (APJ) started 2011 strongly with first quarter Software Revenue growth of 31 per cent (to €97 million). India, China and Japan all led the way, with each of those markets achieving exceptionally strong growth in software revenue.

“This is a great start to 2011. We are seeing the entire Asia region becoming as focused on managing domestic market growth, as it has previously been on export-led growth. This is an exciting time to be at SAP Asia Pacific Japan. SAP’s strategy of growth through innovation is paying off, as customers in this region tell us that they appreciate the choice and value which SAP is able to offer them. We will continue to bring even more innovation to the market in the coming months as we launch new In-Memory, On-Demand and Mobility solutions here,” said Steve Watts, President, SAP Asia Pacific Japan.

SAP APJ’s Software and Software Related Services Revenue for Q1 2011 grew by 18 per cent to €335 million, while Total Revenue saw a corresponding 18 per cent growth to €400 million. All APJ growth figures shown above are expressed in Non-IFRS constant currency terms and are measured against the comparable period in the previous year.

Globally, SAP also delivered a strong Q1 2011, charting its 5th consecutive quarter of double-digit growth in Non-IFRS Software and Software Related Services Revenue (+17 per cent at constant currencies, to €2.34 billion). Non-IFRS operating margin increased by 1 per cent, to 25.6 per cent year-on-year.

Watts continued “Our competitive position here has never been stronger. Our closest competitor in this region achieved only 5 per cent growth in application software revenues in its most recent quarter, while we achieved 31 per cent growth. Our indirect channel business also showed robust growth of 40 per cent this quarter. APJ customers are looking to grow their businesses and move closer to their customers through mobility and real-time computing. They are seeing SAP as the only company with the technology, solutions and partner ecosystem to help them execute on their vision. By focusing on game changing innovations, we are seeing an accelerated sales pipeline.”

Key customer wins in the region came from all lines of business, across a wide variety of industries, with SAP APJ winning all head-to-head competitive deals in the category of €2 million and above.

Globally, the strong momentum following the Sybase acquisition continued, with Sybase contributing €205 million in Total Revenue. Q1 2011 was also the best quarter ever for SAP Business ByDesign, and we are well on track to meet the target of 1,000 customers by year end. Following the launch of SAP’s new in-memory offering and BI 4.0 platform, SAP has clearly set itself as the leader in Business Analytics, with a 25 per cent market share and a Number 1 ranking by ¬Gartner in Business Intelligence platforms.

Watts said: “SAP will continue to increase the speed of innovation. Within two weeks, we will announce the introduction of the next generation Sybase Unwired platform at our SAPPHIRE NOW event in Orlando. We will also be announcing an additional 40 mobile applications by year end.”

Globally, SAP also released its quarterly sustainability update which showed a saving of approximately €170 million as a result of focused sustainability initiatives since 2008. The report also details preliminary, unaudited greenhouse gas (GHG) emissions for Q1 2011 of 111 kilotonnes (not including Sybase), an increase of 6 per cent compared with the first quarter of 2010. Sustainability is core to SAP’s vision of making the world run better and over the past four years, SAP has made significant strides to reduce emissions to deliver on its own sustainability business case.

About SAP
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better.  From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition.  SAP applications and services enable more than 170,000 customers (includes customers from the acquisition of Sybase) to operate profitably, adapt continuously, and grow sustainably.  For more information, visit www.sap.com.

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