SAP Announces Q2 and Half-Year 2022 Results – Asia Pacific and Japan View

On July 21, SAP announced its Q2 2022 earnings.

  • SAP is executing on its cloud-led strategy, which is driving accelerating cloud growth through both new business and cloud adoption by existing customers.
  • Cloud revenue is up 34% and up 24% at constant currencies to become the largest revenue stream
  • New RISE with SAP customers in APJ included Malaysia Airlines, Mitsubishi Materials Corporation, Bridgestone Australia, Sumitomo Rubber Industries Ltd., Mapletree Investments Pte Ltd, and ST Logistics Pte Ltd.

Christian Klein, CEO of SAP, said “As our Q2 results demonstrate, SAP’s portfolio is more relevant than ever. Our transition to the cloud is ahead of schedule and we have exceeded topline expectations, with cloud revenue becoming SAP’s largest revenue stream. Our pipeline is strong, and we are winning market share underpinned by the very strong 100% growth of S/4HANA current cloud backlog.”

Through Q2, more leading Asian companies adopted SAP cloud, with continued demand for RISE with SAP across customers of all sizes and all industries. RISE with SAP is a Business Transformation as a Service (BTaaS) subscription offering that combines a set of products and services, the main component of which is S/4 HANA Cloud edition, enabling customers’ cloud infrastructures to run in a SAP data centre, or with their hyperscaler of choice.

SAP Asia Pacific and Japan (APJ) grew cloud revenue to 389M Euros in Q2 2022, an increase of 31% over same period 2021. Japan and India in particular showed strong cloud revenue momentum. Total APJ Q2 2022 revenue grew to 1.112B Euros, up 8% over same period 2021.

President of SAP APJ, Paul Marriott, said the company is seeing ongoing demand for RISE with SAP solution from a wide range of industry sectors, and noted there was a distinct trend this quarter from travel and manufacturing companies looking to future-proof their organisations, and deliver business impact through real-time insights and operational efficiencies.

“The momentum shows no signs of slowing. We are seeing new and existing customers innovating, expanding, and setting themselves up for future success – whatever the future looks like. In an uncertain world, one thing we can be sure of is that being future-ready means putting technology at the heart of your business and focusing on digital transformation; bringing transparency across the supply chain; strengthening business networks; and incorporating sustainability throughout your operation, because there is either sustainable business – or there is no business.”

During Q2 2022, new RISE with SAP customers in APJ included Malaysia Airlines, Mitsubishi Materials Corporation, Bridgestone Australia, Sumitomo Rubber Industries Ltd., Mapletree Investments Pte Ltd, and ST Logistics Pte Ltd. Additionally, HCL Technologies, a leading global technology company and SAP global strategic service partner (GSSP), went live with RISE with SAP in the same quarter.

Malaysia Airlines, the country’s national airline, has connectivity to as many as 1,000 destinations across 170 territories worldwide. As demand for travel increased following a challenging period for the industry, the airline wanted to improve visibility of flight performance and profitability through a connected, central process. The team also wanted to transform the operational support it provides, by incorporating real-time insights for better decision-making. To deliver on that vision, the airline sought the SAP Cloud Success Services team’s deep airline industry domain expertise, and expanded its SAP portfolio to include RISE with SAP, SAP S/4HANA Private Cloud, SAP Analytics Cloud, SAP BW/4HANA, and SAP Ariba. Malaysia Airlines also subscribed to SAP SuccessFactors to automate and simplify payroll management.

Sumitomo Rubber Industries, Ltd. is a Japanese-headquartered tyre and rubber products company, known globally for its brands such as DUNLOP and FALKEN. The company uses advanced proprietary rubber technologies to drive growth and development through tyres, sports, and industrial products. It selected RISE with SAP to accelerate transformation that enhances both the company’s economic value, and its value to society. By reinforcing its organisational framework, Sumitomo Rubber is focusing efforts on developing and promoting sales of high-performance products, creating new value, and promoting ESG management to contribute to the realisation of a sustainable society.

Headquartered in Singapore, Mapletree is a global real estate development and investment management company with assets located in 13 markets across Asia Pacific, the UK, and the US. The company embarked on a digital transformation journey to refresh its processes and technology landscape to meet aggressive growth objectives. Mapletree chose RISE with SAP, SAP SuccessFactors, SAP BW/4HANA, and SAP Business Planning and Consolidation to improve compliance across all locations and add new efficiencies across its finance, real-estate contracting and leasing management, and payroll and onboarding functions

An SAP customer for 25 years, Bridgestone Australia is Australia’s most trusted tyre brand and part of the Bridgestone Corporation, a global leader in sustainable mobility and advanced solutions. When a review of license requirements was needed to support the company’s business, and some of the on-premises infrastructure was approaching its end of life, it presented the perfect time to modernise and transform Bridgestone Australia’s IT infrastructure through RISE with SAP. The implementation created a licensing model that could scale for future growth, while embracing the efficiency, agility, and accessibility benefits of moving to the cloud. Bridgestone chose SAP ERP, Process Orchestration, Extended Warehouse Management and BW on HANA data warehousing solution to modernise its landscape, simplify processes, and secure its business for the future.

ST Logistics is a Singapore-based company with more than 45 years of experience in providing integrated and cost-effective supply chain solutions to the Defence, Government, and Healthcare sectors. It endeavours to be a leader in the supply chain industry, with excellence in delivering sustainable and innovative solutions. ST Logistics selected RISE with SAP as the core infrastructure to power its 3-year digital transformation and support the company’s growth trajectory. It is incorporating SAP Business Technology Platform (SAP BTP) to improve integration across its business operations and supply chain, streamlining processes to drive operational excellence. ST Logistics has also adopted SAP Analytics Cloud to provide end-to-end data analytics that support real-time planning and provide insights across customer touchpoints to improve customer and employee experience,  advancing its goals of increasing customer mindshare, and driving continuous innovation and more effective workforce development to future-proof its business.

Qualtrics Experience Management Solutions segment revenue was up globally 57% to €330 million year over year, up 39% at constant currencies, driven by robust renewal rates and expansions. New APJ Qualtrics customer wins in Q2 included Tata Digital; Venues NSW, a state government agency that manages a portfolio of sporting venues including Stadium Australia and the Sydney Cricket Ground; and Korean-headquartered LINE Plus Corporation.