EMI Music Drives Business Performance in the Digital Age with SAP

mySAP™ ERP Helps World’s Second-Largest Record Company Evolve Worldwide Financial and Sales Processes with Changing Media Marketplace

LondonSAP AG (NYSE: SAP) today announced that EMI Music, part of the EMI Group, a global media and entertainment leader whose artists include Coldplay, Norah Jones and Robbie Williams, is deploying mySAP™ ERP across its worldwide operations. The SAP rollout underpins the company’s efforts to evolve successfully with the changing customer and market demands of the digital age by better analyzing regional and global business performance and responding more quickly with new products and business models.

With the aim of harmonizing financial and sales processes, increasing

transparency and improving efficiency of global reporting, SAP’s enterprise

resource planning (ERP) solution is replacing various legacy systems for

accounting, purchasing, sales order capture and financial reporting. With

the first phase of the global rollout successfully completed in the UK and

Ireland in 2004, mySAP ERP is currently being rolled out in Japan and will

be extended globally over the next three to five years.

“The entertainment industry is changing dramatically and we aim to

evolve accordingly to take advantage of the opportunities arising from new

sales and distribution channels,” said Andrew Hickey, Chief Technology

Officer, EMI Music. “After re-evaluating our global sales and financial

processes and identifying potential areas of benefit, we found SAP’s ERP

suite to be best-suited to help us adapt with these business changes. With

SAP we will have a single, integrated solution to help track, analyze and

manage worldwide business performance and make faster, more-informed

decisions based on real-time financial and market insight.”

EMI Music is successfully transforming its business to meet the

changing needs of its customers and the growing prevalence of the digital

marketplace via Internet, cell phones and portable media players. With the

increasing complexity of a customer base served by ever more regional and

global retailers, the company required faster information analysis as well

as greater flexibility to seize opportunities with new product types and

business models.

By streamlining sales, accounting and purchasing processes, EMI will

be able to manage business performance across the globe more effectively.

Working on a single platform, EMI employees around the world will gain

enhanced visibility across regional and global sales and improved

analytical capabilities to proactively manage business performance, profit

and growth.

“The media and entertainment industry’s complexity of sales channels,

short-lived trends and changing business models are revealing the

functional limits of legacy IT systems,” said Nils Herzberg, senior vice

president, Product and Technology Group, SAP, “EMI has recognized the need

for and value of mySAP ERP, the next-generation ERP solution that enables

greater visibility into global business performance and faster,

well-informed response to customer demands.”

About EMI Music
EMI is the world’s largest independent music company, operating directly in
50 countries. Its EMI Music division represents more than 1,000 artists
spanning all musical tastes and genres. Its record labels include Angel,
Astralwerks, Blue Note, Capitol, Capitol Nashville, EMI Classics, EMI CMG,
EMI Records, EMI Televisa Music, Manhattan, Mute, Parlophone and Virgin.