SAP ANZ announces Q2 and First Half results

For Immediate Release

SAP ANZ announces Q2 and First Half results for 2009

Double digit revenue increases over the year and the quarter

SAP Australia New Zealand today announced its financial result for the second quarter and first half of FY09, which ended on 30 June 2009. In challenging trading conditions, SAP increased overall revenue by 16 percent in Q209, compared to the same period last year. Overall revenue was up by 14 percent for the first half overall, when compared with the same period in 2008.

The key revenue indicator of the business, software and software related services (that is, revenue excluding Consulting, Training and other Services revenue) showed 17 percent growth for the First Half YOY and 10 percent growth Q209 over Q208.

“We’re very pleased with our performance in the first half,” says Tim Ebbeck, President and CEO, SAP Australia New Zealand. “Amidst some of the most volatile trading and market conditions in years we have signed major deals with new customers, strengthened and built on relationships with existing customers and taken to market a really compelling set of solutions with SAP BusinessObjects.

“In this environment, any incremental revenue growth is significant, given we had our largest year ever in 2008. We are pleased but not complacent. It’s still a challenging market but also one with significant opportunities,” adds Ebbeck.

Key competitive wins with companies include ERM Power, the largest privately owned energy company in Australia, and Mondial Assistance Australia, both via Extend Technologies, as well as Metcash. Other significant wins in the indirect business including Muir Electrical (trading as The Good Guys), sportswear manufacturer ASICS and Australia’s largest pharmaceutical company, Ego Pharmaceuticals. Optus, KiwiRail and Telecom New Zealand also extended their investments in SAP in the quarter.

The quarter also contained revenue instalments on large transformational projects underway at Queensland Rail, Australia Post and Commonwealth Bank. Retailer Super Cheap Auto Group committed to a significant expansion of its SAP landscape, including the first purchase of SAP BusinessObjects Explorer, in the ANZ region.

“The antidote to uncertainty is clarity. SAP drives clarity in businesses and this is a message which has never been more relevant in the wake of the Global Financial Crisis and a slowing economy.

“We’ve won an unfair share of a smaller number of major transformation projects. This type of deal was the major theme in 2008 and the prime contributor to our financial result last year. In 2009, we’ve seen organisations focus on smaller strategic IT projects that are designed to deliver a very specific outcome or competitive advantage without disrupting ongoing operations,” Ebbeck says.

“We anticipated these changes in purchase cycles and customer behaviour with the launch of the SAP Value Engineering initiative. SAP Value Engineering helps customers accurately quantify ROI in advance, while the Value Realisation process enables customers to realise on the ROI. Our value-based methodology has already made a critical difference to our success.”

SAP recently launched the SAP Value Academies. These are quarterly workshops for customers to give them the tools and methodologies they need to identify, deliver and measure the value of IT projects.

SAP also announced its vision for the CLEAR enterprise during the first half and launched a business unit dedicated to delivering a broad portfolio of Sustainability solutions, including Environmental Compliance, Energy and Compliance, Environmental Health and Safety and Sustainable Supply Chain.

“The call for a more sustainable approach to business and greater transparency to business operations is growing. Organisations are subject to tougher regulation, greater cost pressures, more complex global networks and demanding and empowered stakeholders,” continues Ebbeck. “A clear enterprise is capable of making informed strategic decisions based on a strong understanding of the changing environment.”

Significant go-lives during the quarter included Queensland Motorways, Energy Australia, Caltex, Commonwealth Bank, DET, Fonterra and Queensland Rail.

ends

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