SAP Announces Q3 2023 Results: Asia Pacific and Japan View

SINGAPORE, October 20 – Asia Pacific and Japan’s (APJ) leading businesses are choosing SAP to transform in the cloud.

SAP announced its global Q3 results on October 19, showing continued growth in cloud revenue and backlog. In APJ, SAP announced a range of high-profile customer wins and go-lives across countries and industries, underlining the demand for intelligent solutions to drive cloud transformations, as well as SAP’s breadth of innovative products and services. Highlights include:

• Cloud revenue in APJ was up 14% to €442 million, up 27% at constant currencies.
• World-famous brands including LG Electronics, LG Energy Solutions, Hitachi Zosen, Ricoh Co. and Hyundai Kia all chose SAP to power their cloud journeys.
• Companies across APJ are choosing SAP to solve critical business challenges, including Toll Group’s go-live of SAP Sovereign Cloud Capabilities and Clean Max Enviro Energy Solutions signing on SAP Sustainability Control Tower.
• Small and medium-sized businesses like Tait International are realising the benefits of cloud transformation through GROW with SAP.
• Additional wins and go-lives in APJ include Asahi Kasei, Celltrion Healthcare, Gulf Marine, Itochu Corporation, Jollibee Foods Corporation, Mahindra &. Mahindra, PETROS, Petrosea, PT Angkasa Pura, and UPL Limited.

In APJ, SAP grew cloud revenue to 442m Euros in Q3 2023, an increase of 14% over the same period in 2022 and 27% at constant currency, while total revenue was 973m Euros. Globally, SAP’s cloud revenue was up 16%, with S/4HANA Cloud revenue up 67%.

That growth was driven by some of the world’s most recognisable brands choosing SAP. In Korea, LG Electronics and LG Energy Solutions chose RISE with SAP Private Cloud to support their business transformation, while Hyundai Kia also chose SAP private cloud solutions. SAP also saw significant wins with Ricoh Co. Ltd and Hitachi Zosen’s choice of RISE with SAP and SAP S/4HANA Cloud.

SAP is working with customers to solve their most pressing business challenges. In partnership with IBM Consulting, Australian company Toll Group went live with SAP Sovereign Cloud Capabilities, SAP S/4HANA Cloud, and SAP Business Technology Platform to securely support its business operations in transportation, warehousing and logistics across road, rail, sea, and air. Meanwhile, Clean Max Enviro Energy Solutions has purchased SAP Sustainability Control Tower, alongside SAP S/4HANA Cloud, SAP Ariba, and SAP Analytics Cloud to support the company’s sustainable vision and need to scale with its significant growth ambitions.

President of SAP APJ, Paul Marriott, said “Organisations of all sizes and across all industries are realising the value of SAP cloud solutions to boost flexibility, innovation, and ultimately business outcomes. But it’s not just RISE with SAP and GROW with SAP that are creating tangible results, SAP is also driving transformative innovation for APJ customers in the areas of sovereign cloud, sustainability, and AI. Our cloud strategy and best-in-suite portfolio are helping customers across APJ address their critical challenges.”

SAP’s cloud strategy continues to resonate with customers across the region. World-renowned brands like Celltrion Healthcare, Gulf Marine, Hitachi Zosen, PETROS, Petrosea, PT Angkasa Pura, Tait International, and UPL Limited are benefiting from SAP’s comprehensive cloud transformation through solutions including RISE with SAP, GROW with SAP, and SAP S/4HANA.

New APJ customer wins and go-lives in Q3, 2023

Korea — Global healthcare leader Celltrion continues innovate to promote better and happier lives for humanity. By venturing into the $833 billion global pharmaceutical market, Celltrion provides affordable healthcare to patients around the world. As part of its digital transformation strategy, the company aims to establish logistics and accounting expertise, improve efficiency, and drive innovation. With the help of SAP Cloud Success Services as its implementation partner, Celltrion has adopted SAP S/4HANA Cloud, Public Edition – a ready-to-run cloud ERP that delivers industry best practices, drives efficiencies, and continuous innovation. As a result, the monthly closing period has been shortened from 25 days to 12 days, manual work is significantly reduced by linking with the pharmaceutical-specific logistics system and systemising the approval process and pharmaceutical/bio-specific settlement process. The company has seen early value realisation through an increase in work efficiency, the establishment of a real-time reporting system, and setting themselves ready for future expansion of its overseas corporations.

India — CleanMax is Asia’s leading commercial and industrial renewable energy company, working with more than 350 businesses around the world on renewable energy requirements including rooftop solar projects, solar farms, wind farms, and hybrid solar wind farms. To support CleanMax’s sustainable vision and need to scale with its significant growth ambitions, the business looked to the cloud to support financial management, sustainability reporting, and implementing real-time analytics to improve decision-making. That’s why CleanMax chose SAP S/4HANA Cloud, SAP Ariba, SAP Sustainability Control Tower, and SAP Analytics Cloud, to support an increase in revenue of up to 10% and a reduction of up to 30% in human resource effort around reporting. CleanMax will grow alongside SAP to a more efficient, more sustainable, and more profitable future.

Singapore — For more than 15 years Gulf Marine, a subsidiary of Gulf Oil International, has operated as a trusted partner to the world shipping industry, offering high quality marine lubricants and technical services to more than 1,000 ports in 80 countries. Gulf Marine needed an ERP system to empower the next stage of its growth, streamlining processes, scaling to meet needs, and capitalising on innovation. Gulf Marine chose SAP S/4HANA public cloud to modernise its operations, mitigate costs, and boost performance in finance, sales, and supply chains. Working with CBS Consulting, Gulf Marine will benefit from SAP Preferred Success to drive its public cloud journey.

Korea — One of the world’s best-known brands, LG has chosen SAP to support its business transformation across multiple businesses. LG Electronics needed a flexible, scalable, and dynamic ERP system to support its ambitious growth plans to transform its business model to encompass B2C, B2B, and direct-to-consumer approaches. That’s why LG Electronics moved from its legacy solution to RISE with SAP Private Cloud to realise the benefits of cloud innovation and efficiency. Meanwhile, LG Energy Solution has chosen SAP to support its global manufacturing expansion to meet the growing demand for electric vehicle batteries. By choosing RISE with SAP, LG Energy Solution is able to boost the speed associated with deploying new locations, handle specific local requirements, and scale to handle greater amounts of data.

India — Mahindra & Mahindra (M&M) is an Indian multinational corporation operating in various sectors, with a primary focus on automotive, farm, and services businesses. Founded in 1945, the company has its headquarters in Mumbai, India. With the assistance of SAP Cloud Success Services, M&M achieved a significant milestone in its digital transformation by successfully going live with SAP Ariba Supplier Life Cycle, Sourcing, Contract, Buying, and Commerce Automation in Q3. These modules are designed to help streamline procurement operations, drive cost savings, increase efficiency, reduce risks, enhance compliance, and drive greater value from supplier relationships. The SAP Cloud Success Services team played a crucial role in ensuring a seamless deployment and risk mitigation through their continuous support in executing this digital transformation.

Malaysia — Incorporated in 2017 by the State Government of Sarawak, PETROS (Petroleum Sarawak Berhad) is one of Malaysia’s fastest growing integrated oil and gas companies. To realise its rapid growth ambitions, PETROS required a cloud solution that could scale alongside it without impacting its daily operations. That’s why PETROS chose to move to RISE with SAP in the cloud, simplifying its engagement model and removing the headaches of managing software, hardware, and managed services. PETROS can now free up more resources to add value to its daily operations to manage infrastructure and drive strategic business growth.

Indonesia — Petrosea is a service company specialising in mining, engineering, procurement, construction, and oil and gas services. Recently, Petrosea embarked on a new digitalisation journey, successfully going live with SAP S/4HANA with the support of SAP Cloud Success Services. After divesting from its parent company, Petrosea selected SAP Cloud Success Services as its trusted implementation partner and successfully implemented RISE with SAP. Additionally, Petrosea deployed SAP Signavio Process Insights and Process Manager solutions, BW/4HANA migration, and a successful Master Data Governance upgrade. By integrating 17 satellite systems with SAP S/4HANA, Petrosea created a unified system, generating value and benefits in business development, operations and asset management, supply chain and sustainability, and finance. The collaboration between Petrosea and SAP teams was characterised by unwavering commitment, trust, and a high level of professionalism, ensuring the successful execution of the project.

New Zealand — For more than 50 years, Tait Communications has been designing, delivering and supporting critical communications networks for public safety, transportation and utility customers around the world. Based in New Zealand, Tait supports customers around the world from regional that cover the Americas, Asia Pacific, Europe, Middle East, and Africa. A long-time SAP customer, Tait understood that the move to the cloud would support its ambitious global growth targets, bring together previously siloed systems to boost efficiency, and modernize its infrastructure. To realise this vision, Tait chose GROW with SAP, creating a fully integrated solution which will allow Tait to streamline its process from manufacturing, warehousing and inventory, sales and distribution, and procurement all the way up to financials and reporting. Tait will benefit from SAP’s cloud infrastructure to help boost its business and standardize its processes to deploy to other key lines of businesses, countries, and subsidiaries quickly. Tait’s purpose is to go beyond for a safer world and GROW with SAP will help the company simplify its customer experience and reduce complexity for critical communications customers. It will also provide better planning, forecasting, and ordering information to succeed at a fast and changing pace.

Australia — Toll Group is a subsidiary of Japan Post Holdings with worldwide operations in transportation, warehousing and logistics in road, rail, sea and air. Toll Government and Defence division have chosen to migrate from their legacy system to SAP Sovereign Cloud and successfully went live on SAP S/4HANA Cloud, private edition on Aug 1, 2023 with the support of SAP Cloud Success Services. Toll Group worked with IBM as its implementation partner and SAP Cloud Success Services to ensure smooth roll out of the system. In this extensive brownfield migration to SAP S/4HANA Cloud, Toll Group adopted SAP S/4HANA Cloud, SAP ADS, SAP Web Dispatcher, SAP Cloud Connector, SAP Business Technology Platform and SAP Integration Suite.

India — UPL Limited’s Global CIO, Pushkar Rege, noted: “We selected RISE WITH SAP to build Pure-Play Platforms that are dedicated to specific functions and objectives within our industry. UPL went live with RISE with SAP and chose SAP Cloud Success Services as its trusted implementation partner. With SAP S/4HANA Private Cloud Edition we are set to enable faster innovation and iteration while providing better scalability, user experience, and control over IT infrastructure.”