SAP ANZ announces strong financial result

23 July 2004

SAP ANZ announces strong first half financial results

Auckland, 23 July 2004 — SAP Australia and New Zealand (ANZ) has announced that total revenue for the first half is up 30 per cent over this time last year, and product revenues are also up 26 per cent year-on-year. These results are consistent with the positive Q2 and six month results released by SAP AG, which showed software revenues were 497 million Euro (2003:431 million Euro), representing an increase of 15 per cent compared to 2003. Software revenues increased 17 per cent year-on-year.

Total revenues were 1.8 billion Euro (2003:1.6 billion Euro), which was an increase of 9 per cent compared to 2003. Total revenues increased 11 per cent year-on-year. “A key differentiator for SAP’s continued success in this competitive environment is our diversification within industries and our investment on multiple fronts such as CRM, SMB and SCM,” said Geraldine McBride, Chief Executive Officer and Managing Director, SAP ANZ.

“Our results demonstrate not only our commitment to these industries but also the speed at which we are identifying and responding to their business needs. “We have nailed significant wins in telecommunications, public sector, retail and manufacturing with customers quickly acknowledging the proven benefits of a robust and agile ERP solution.” SAP ANZ continued its push into the small and midsize business (SMB) sector with the largest number of new customers signed across the APA region.

This contributed significantly to 195 per cent growth in SMB software revenue compared to Q2 2003. From January to July, SAP secured 36 SAP Business One and 10 mySAP All-in-One new deals across ANZ. Not only has SAP experienced growth in its existing customer space, Australian retail chain Franklins has been secured as a new customer. SAP ANZ also experienced an aggressive uptake of ERP solutions. SAP New Zealand managing director Ian Black says the significant Q2 deals included upgrades to mySAP ERP and mySAP SCM contracts such as New Zealand’s largest department store Farmers and dairy giant Fonterra.

Australia’s largest manufacturer of plastic products Nylex also continued to invest in SAP solutions. In addition, companies that wanted to leverage the SAP NetWeaver platform included national telecommunications operator Optus and outsourcing services provider Transfield Services.

These companies took advantage of a reduction in their total cost of ownership while attaining more flexible solutions. Banking customer National Australia Bank (NAB) Group has further invested in SAP’s Bank Analyzer product during Q2 in a deal designed to help the organisation manage new global financial reporting and compliance regulations.

“SAP is unmatched in providing flexible, adaptable and fundamental solutions tailored to helping our customers achieve profitable growth,” said Ms McBride. “We continue to strengthen our lead against competitors in key sectors such as CRM, SCM, and ERP and growth has been fuelled by demand for the SAP NetWeaver platform from organisations such as Telstra and Coles Myer.”

SAP expects to maintain business software leadership in ERP and SCM across ANZ. Significant deals signed this quarter in the ERP space have seen SAP maintain domination in this sector and mean it will continue its aggressive bid to be the most significant CRM vendor in Australia.

ENDS

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