SAP Asia Pacific Japan Records Best Ever 2nd Quarter Performance With 35% Software Revenue Growth

Outstanding Q2 2011 performance across regions and markets driven by healthy core business; fast growing pipeline for key innovations in in-memory, mobility and on-demand

SAP Asia Pacific Japan (APJ) ended the second quarter of 2011 strongly, with the best ever performance in the company’s history. Q2 2011 Software Revenue grew 35 per cent to €171 million. Japan in particular put in a record Q2 performance, with a growing number of early adoptors choosing SAP’s HANA solution. Other particularly strong key markets were China and India.

“SAP APJ has recorded its best ever 2nd quarter performance underpinned by strong business momentum across the entire region.

“We are very optimistic about the outlook for the rest of 2011 and continue to invest in our future success by aggressively hiring top quality industry talent across the region. Our core business is growing substantially. At the same time, we are growing very strongly in areas such as In-Memory(HANA), Mobility and On-Demand solutions.

“SAP APJ customers are implementing increasingly innovative software solutions, resulting in rapidly growing pipelines for SAP’s newer innovations. While our In-Memory offering became generally available less than a month ago, the global pipeline already exceeds €400 million,” said Steve Watts, President, SAP Asia Pacific Japan.

In Q2 2011, SAP APJ’s Software and Software Related Services Revenue grew 23 per cent to €439 million, while Total Revenue saw a corresponding 20 per cent growth to €513 million. For the six months ended June 30, 2011, SAP APJ grew Software Revenue by 33 per cent, Software and Software Related Services Revenue by 21 per cent, and Total Revenue by 19 per cent. All growth figures shown above are expressed in Non-IFRS constant currency terms and are measured against the previous comparable period.

Globally, SAP also delivered a robust Q2 2011 performance, charting its 6th consecutive quarter of double-digit growth in Non-IFRS Software and Software Related Services Revenue (+20 per cent at constant currencies, to €2.711 billion). Software Revenue saw a corresponding increase of 35 per cent, to €860 million.

SAP’s strong global performance in the first half of the year has led the company to refine its full-year 2011 guidance. Whilst FY2011 Non-IFRS Software and Software Related Services Revenue is still expected to increase in a range of 10 to 14 per cent at constant currencies, SAP now expects to reach the higher end of that range. Similarly, SAP has reaffirmed Non-IFRS operating profit to be in a range of €4.45 to €4.65 billion, in constant currency terms, but expects to reach the higher end of that range.

Watts continued: “Our innovation strategy is clearly winning – we are driving fundamental change in the IT industry. As traditional hardware moves into the cloud and in-memory based servers redefine high-speed computing, we are seeing a corresponding shift in investment by our customers to innovative software solutions. SAP is driving this change. As a result, we saw our best ever second quarter, with rapidly growing pipelines for the rest of the year.

“Our competitive position has never been stronger. In Q2 2011, SAP APJ won all head-to-head competitive large deals (of €2 million and above). We are the clear market leader in Business Intelligence – at 1.5 times larger than our next competitor. We have the enterprise software industry’s most advanced Business Suite, with more than 25 industry-specific solutions. We are also expanding our leadership in analytics, with a 22 per cent market share, well ahead of our competition. Our key innovations, Mobility and In-Memory are gaining traction with customers and are already contributing to top line revenue growth. Our strategy of accelerating growth through the SAP ecosystem is also paying off – our indirect business is seeing high double-digit growth, with our partner business increasing more than 60 per cent year-on-year.”

Globally, synergies with Sybase continued - Sybase mobility products grew in the high double-digits year-on-year. The new Sybase Unwired Platform, first unveiled at SAPPHIRE NOW Orlando in May 2011 is gaining traction, with more than 50 new mobile business applications targeted by year-end. SAP is also seeing strong customer momentum with more than 3,000 new Sybase customers since the acquisition, of which 40 per cent are using Sybase mobility solutions. SAP’s ByDesign momentum also continued in Q2, with 550 SAP Business ByDesign customers at the end of the second quarter and SAP well on track to meet its target of 1,000 customers by the end of 2011.

Watts said: “Our robust growth in the first half of 2011 is based on a healthy and stable core, supplemented by innovative solution offerings. Our customers tell us that SAP is becoming more strategic to them than ever before; they can now innovate their business around a stable and consistent core and take advantage of new technologies such as In-Memory computing, mobility and cloud computing, without disruption.”

Globally, SAP also released its quarterly sustainability update showing that it has achieved a cost reduction of approximately €185 million since early 2008, as a direct result of focused sustainability initiatives. SAP remains on target to meet the year-end emissions objective of 460 kilotonnes — in line with its long-term target of reducing emissions to year-2000 levels, by 2020.

About SAP
As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable more than 172,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

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