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SAP Announces Q4 2022 Results: Asia Pacific and Japan View

World events continue to impact organisations and industries undergoing transformation, demanding agility, data insights, and partnership based on adaptation and collaboration. SAP announced its fourth quarter of cloud revenue growth and a host of leading new Asia Pacific and Japan (APJ) customers, embodying those qualities to deliver strong cloud momentum in its core ERP and RISE with SAP business, and demonstrating the business systems leader is more relevant than ever.

  • Cloud revenue globally was up 33% to €12.5 billion, up 24% at constant currencies
  • New RISE with SAP customers in APJ included Fujitsu LimitedPETRONAS, and Daiwa House, while Mahindra & Mahindra went live with RISE with SAP
  • Leading global names reported go-lives supported by SAP Cloud Success Services, including ZespriMacquarie Banking & Financial Services, and Korea Chamber of Commerce
  • APJ also reported momentum with new SAP SuccessFactors customers like IndiGo Airlines, while organisations including QantasFreedom FurnitureEndeavour Group, and Wipro selected or expanded their investments in Qualtrics.

In APJ, SAP grew cloud revenue to 417M Euros in Q4 2022, an increase of 28% over same period 2021, with Japan and India showing particular momentum. Total APJ Q4 2022 revenue grew to 1.171B Euros. Those results culminated in a full year APJ cloud revenue of 1.575B Euros (29% growth against FY21) and total revenue of 4.495B, up 5% year-on-year, with Japan and Korea showing particular strength.

World-renowned brands like Fujitsu and PETRONAS chose RISE with SAP, becoming the latest companies to benefit from comprehensive, flexible, and innovative cloud-based transformation.

One year from the launch of SAP Cloud Success Services, the APJ services organisation is providing a simpler way to realise business outcomes through reliable, value-driven collaboration. The Cloud Success Services team brings local expertise to complex transformation projects and cloud go-lives, with new customer implementations including the world’s largest kiwifruit marketer Zespri; one of Australia’s biggest financial companies, Macquarie Banking and Financial Services; and India’s global Mahindra & Mahindra group.

President of SAP APJ, Paul Marriott, said “Digital transformation, supply chain innovation, and sustainable business models continue to be critical for long-term strategic success. Leading companies across Asia are realising it is not about lifting and shifting IT, but driving true financial and sustainable business outcomes through the adoption of technology. This is why it is so critical to focus on process improvement through industry best practices, a clean core architecture and business networks that drive global scale. Achieving success with large or small organisations requires strong collaboration between our customers, the partner ecosystem, and SAP.”

New APJ customers

Global ICT company Fujitsu Limited has selected RISE with SAP to promote its company-wide digital transformation project, FUJITRA. In order to promote the transformation, the company will work on a project to evolve management towards a data-driven, future-predictive approach by standardising and integrating global and group-wide management, business processes, data and IT based on SAP S/4HANA Cloud. In addition, through the adoption of SAP Signavio, the company will continuously improve operational efficiency and productivity.

The Mahindra Group is one of the largest multinational federations of companies with an inspiring history that goes back over seven decades. The company operates in 100 countries and employs more than 250,000 employees. SAP has been Mahindra’s partner over the last two decades, supporting the company on its growth ambition and digital transformation. In November 2022, with support from SAP Cloud Success Services, the company went live with SAP S/4 HANA Cloud Edition, successfully migrating from its SAP S/4HANA on-premise instance. This will empower the company in the next stage of its transformation, helping to drive innovation across its business using the SAP Business Technology Platform. SAP Max Attention Services and SAP Customer Success Partners played a critical role in providing support and resources to Mahindra & Mahindra resulting in platform technical readiness and enabling valuable resources to focus on innovative work.

Zespri, the world’s biggest marketer of kiwifruit, has gone live with SAP S/4HANA Cloud, private edition, implemented in conjunction with a consortium of implementation partners, including Deloitte in collaboration with Accenture, and Sysdoc. The move will support Zespri’s ability to deliver the highest quality fruit to market and sustain strong returns to growers. The go-live is the first phase in Zespri’s ambitious, multi-year Horizon transformation programme, which aims  to standardise and automate Zespri’s processes, increase its operational efficiency, and provide a platform for growth and innovation. Zespri is also benefiting from SAP Integrated Business Planning, SAP Business Technology Platform capabilities, and SAP-endorsed partner solutions from OpenText, Tricentis, and Celonis. SAP’s Cloud Success Services collaborated with Deloitte and Accenture to mitigate the technology risk for the programme, as well as supporting with initial design, technology safeguarding and go-live support.

Macquarie Banking and Financial Services (BFS) is Macquarie Group’s retail banking business, serving more than 1.7 million customers in the Australian market through its leading digital banking offering. BFS is the first Australian bank of size to offer lending and retail deposits on one core banking system. The SAP Banking Platform is a key technology platform for Macquarie’s BFS group, which has seen significant growth in recent years. The platform’s reliability, scalability and performance has supported the digital promise BFS makes to its customers. For more than seven years, the SAP Cloud Success Services team has worked with BFS to deliver effective and efficient services on the SAP Banking Platform. In 2021 this culminated in the SAP Banking Platform being successfully migrated to AWS cloud which has delivered performance improvements as well as cost and operational efficiencies.

InterGlobe Aviation Ltd. (IndiGo) is India‘s largest airline, managing a fleet of 294 aircraft and delivering annual revenues of $2B. IndiGo is in the midst of a transformation, not only to improve its customer experience but to optimise the experiences its 31,500 employees have working for the company every day. By implementing a new HR management system in the cloud, IndiGo hopes to boost talent acquisition, improve productivity, and reward and recognise its crew, pilots, and other airport and support teams. IndiGo chose SAP to collaborate on its HR transformation, understanding its key people, processes, challenges, and business outcomes – and has chosen SAP SuccessFactors, SAP HXM, and SAP Qualtrics to take its employee experience to the cloud.

Australia’s largest airline Qantas expanded the company’s multi-year, multi-product partnership with Qualtrics in Q4 to support the company in its ongoing commitment to help 22,000 employees to be and do their best in a safe and inclusive culture. Within the company’s existing EX program, Qantas will use a tailored 360-degree feedback tool designed by Qualtrics’ EX experts to help develop its leadership programs focused on equipping senior managers with the skills and knowledge to lead inclusive and high-performing teams.

Australia’s largest retail drinks network and portfolio of licensed hotels, Endeavour Group, added new functionalities to its EmployeeXM platform to help the company build manager effectiveness, improve the onboarding experience for new team members, and provide a positive, safe, and inclusive workplace for its 30,000 employees. Adding to the company’s engagement program, Endeavour will capture regular feedback throughout the employee lifecycle to understand what moments are having the biggest impact on employee experience, and what meaningful actions can be taken to improve the experiences for employees and customers.

Freedom Furniture, one of Australia’s leading lifestyle retailers, increased its investment in Qualtrics CustomerXM in Q4 to help the company achieve its goals of increasing profitability and product range, and creating more integrated digital customer experiences in the competitive homeware category. Having seen value in initial investments in Qualtrics, the retailer is now scaling its programs to better understand what customers want. The new insights will guide product inventories and marketing strategies.