2022
Decrease in combined revenue in Russia by 50.8% to 19.382 billion rubles
At the end of 2022, the combined revenue German of the developer ON SAP Russia in decreased by 50.8% - to 19.382 billion rubles. The indicator includes the proceeds of LLC "" and SAP CIS LLC "SAP Labs" from the financial statements for 2021-2022. without. In VAT the ranking " TAdviser100: The largest IT companies in Russia 2023," such an indicator allowed the company to take 26th place.
SAP lost 120 million euros in the quarter due to withdrawal from Russia and Belarus
SAP lost 120 million euros in 2022 due to the curtailment of the activities of Russia and Belarus. The German enterprise software manufacturer announced this on July 21, 2022.
The indicated amount, as the Reuters agency clarifies, includes the cost of payments of benefits for the dismissal of employees, as well as impairment of assets.
 | The departure [from Russia and Belarus - approx. TAdviser] continues, - said CEO Christian Klein on July 21, 2022 at a conference on the publication of financial statements. - We have already notified our employees, they will leave the company during 2022. Some employees will be able to work from other places, but by the end of 2022 we will complete the departure. |  |
According to Klyan, due to the Russian special operation in Ukraine, SAP at the end of 2022 may miss about 350 million euros of adjusted profit (excluding currency fluctuations). This amount includes lost profits due to the closure of business in Russia and Belarus, as well as expenses on restructuring and payment of debts.
| | SAP management made it clear that 200 million euros out of 350 million euros of expenses related to Russia will fall on the second quarter of 2022, but the market has yet to realize this, "said Dan Ridsdale, Managing Director of Edison Group. | |
The reaction of investors to SAP's actions will depend on how willing the company is to withstand the difficulties, as well as their belief in SAP's long-term plans and ambitions, he said.
Due to the expected consequences of leaving Russia and Belarus, SAP worsened its forecast for operating profit for the current year to 7.6-7.9 billion euros from the previously planned 7.8-8.25 billion euros. The company confirmed the forecast for revenue from cloud services at the level of 11.55-11.85 billion euros, and from cloud services and the sale of software licenses this year it expects revenues of 25-25.5 billion euros.[1]
2021: SAP revenue in Russia rose to 38.5 billion rubles. Projects in major corporations helped
As TAdviser found out, the revenue of Russian legal entities SAP - SAP CIS and SAP Labs - in 2021 increased by 2.1%, exceeding 38.5 billion rubles. At the same time, net profit increased by 34.9%, from 1.6 billion to 2.1 billion rubles. Such data are contained in the service "Kontur. Focus." In the ranking TAdviser100: The largest IT companies in Russia 2022, SAP took 16th place. The total revenue of SAP CIS LLC and SAP Labs LLC from the financial statements for 2020-2021 was taken into account. excluding VAT.
Moreover, if the revenue of SAP Labs decreased by 3%, from 2.8 billion to 2.7 billion rubles, then the revenue of the main legal entity SAP CIS increased by 2.5%, from 35.8 billion to 36.7 billion rubles.
The profit of SAP CIS in 2021 increased by almost 59%, from 1.3 billion to 2.1 billion rubles. At the end of the year, SAP Labs showed a net loss of more than 45 million rubles, in 2020 the company was profitable - 207 million rubles.
The Russian office of SAP refrained from commenting.
Despite the import substitution policy, SAP remains one of the largest suppliers of ERP for both private companies and the public sector. So, in 2021, according to the portal of public procurement, in 2021 there were more than 200 tenders for the purchase and maintenance of SAP licenses. The largest was the direct purchase by the subsidiary of Rosatom of licenses and services for their maintenance of SAP in the amount of more than 660 million rubles.
Also, Alrosa acquired SAP technical support services for 230 million in 2021. RusHydro cost more than 390 million rubles to support the SAP-based system, Aeroflot paid more than 250 million rubles for technical support services for SAP-based systems. In the spring of 2021, he invested more than 300 million rubles in the development of systems based on SAP Sberbank. For the support of software modules created on the basis of SAP, more than 250 million paid MUECS, about 280 million - FGC UES.
One of the largest projects in recent years was the introduction of SAP in the Magnit retail network. 8 billion rubles were allocated for the implementation of the project for 3 years. It is being implemented by three large integrators at once - Novardis, T1 Consulting and Witte Consulting. According to the TAdviser source, in March 2022, SAP implementation work was at least partially suspended.
In April 2022, SAP CIS withdrew from the shareholders of the joint venture Inter RAO-Platform (IRP), created jointly with the Russian energy company in June 2017. SAP did not conduct any activities within the framework of the joint venture. According to the Kontur. Focus service, there was only 1 employee in the IRP throughout its existence.
2020
SAP CIS ended the year with "flat" revenue, but came out of the loss
The revenue of SAP CIS LLC, the Russian office of SAP SE, in 2020 amounted to about 35.8 billion rubles, follows from the financial statements of the company published in the database of legal entities "Kontur. Focus." In the ranking TAdviser100: The largest IT companies in Russia 2021 , SAP CIS took 14th place. The company's turnover remained almost at the same level as a year earlier, but unlike 2019, which SAP CIS completed with a loss, in 2020 it registered a net profit of 1.3 billion rubles.
And the revenue of the Russian division of SAP Labs increased in 2020 by 10%, to 2.8 billion rubles. Net profit amounted to 207 million rubles.
It is worth making a remark that the turnover of the local office of a foreign vendor does not always reflect the entire volume of his business in the country, since part of the contracts may be concluded directly with his foreign legal entities. SAP CIS previously said that, for example, contracts that are concluded by the Russian representative office with OEM-model partners are not taken into account in local circulation, since they are legally concluded directly with any of the European SAP representative offices.
At the same time, as practice shows, the more important the regional market is for the vendor, the more contracts he concludes through the local office. SAP previously emphasized the importance of the Russian market for the company, and in the latest global annual reports it included the Russian office in the list of key subsidiaries for which it discloses turnover in euros. However, in 2020, SAP CIS was not included in this list.
The Russian office of the German vendor previously explained to TAdviser the drop out of the list of its main divisions by the fact that SAP has revised its approach to reporting. At the same time, the company added that they were satisfied with their results last year. The company did not comment on the financial results in rubles.
The annual report of SAP, however, states that the indicators for SAP legal entities are not disclosed if they are insignificant for an objective representation of the profitability, liquidity, capital and financial position of SAP. Probably, a significant fall in the ruble in 2020 spoiled the financial results of SAP CIS in euros, which could affect the change in its status in the vendor's global annual report.
In 2019, SAP also classified SAP CIS as a key EMEA revenue generator in its annual report. In the 2nd quarter of 2020, this region, according to the report, suffered from an unprecedented contraction of the economy amid the pandemic, but in the 3rd quarter, the revival of economic activity there was stronger than expected.
During a conference call between top SAP managers and analysts in the 3rd quarter of 2020, SAP CFO Luka Mucic noted a revival in Europe and serious results in Russia and Switzerland, in particular.
And during a similar conference call following the results of the 4th quarter, Luka Mučić said that the whole year came out for the company with a stable result in all regions.
Among the largest SAP projects in Russia last year digital transformation of Magnit retail chain is on the basis of ON a German vendor, which started in 2020. The executive director of Magnit Florian Jansen said that within five years the retailer expects to spend ERP SAP about 8 billion on the company's transformation program. rubles
In 2020, Pulkovo Airport also reported on the digital transformation based on SAP, which completed the implementation of the SAP S/4HANA enterprise management platform.
SAP's share in the domestic market for business automation software - 42.4%
2019
SAP CIS paid record income taxes and came out at a loss of 1.5 billion rubles
The revenue of SAP CIS LLC, the Russian office of SAP SE, in 2019 amounted to about 35.6 billion rubles, follows from the company's reports published in June in the Kontur. Focus database. It remained at almost the same level as in 2018, an increase of about 1%. At the same time, the legal entity ended the year with a net loss of 1.48 billion rubles, while in 2018 SAP CIS made a profit of about 540.7 million rubles.
The company's profit before tax amounted to 606 million rubles. It follows from the financial statements that in 2019 SAP CIS had a major jump in corporate income tax payments: the company paid about 1.2 billion rubles. For comparison, in 2018, its payments under this article amounted to about 249 million rubles, in 2017 - 468 million rubles, and in 2016 - about 20 million rubles.
The volume of payments on corporate income tax in 2019 became the largest for the company since 2005 - from the moment its financial statements began to be published in the public domain. In addition, in 2019, payments under the item "other payments" increased by more than one and a half times in relation to 2018, to about 1 billion rubles.
SAP CIS did not comment on its local financial results on TAdviser at the time of publication.
Renaissance Capital analyst Alexander Vengranovich believes that a similar situation with corporate income tax payments is a fairly typical accounting story. There are additional charges caused by various reasons. Also, for example, companies sometimes have deferred tax liabilities, he says.
"Other payments" according to accounting standards include those that are not related to operating activities. This can include, for example, litigation costs, payments on derivative financial instruments, and more.
SAP Labs, the Russian division of SAP Labs, SAP's global R&D center, reported a slightly higher revenue growth of 5% in 2019. Its turnover amounted to 2.5 billion rubles. The company came out of a loss, which in 2018 amounted to about 50 million rubles, and made a profit of 56 million rubles.
The total revenue of legal entities "SAP CIS," "SAP Labs" in 2019 (38,098,050 thousand rubles) allowed SAP CIS to occupy the top 50 Russian representative offices of foreign IT companies with the largest turnover in the ranking "TAdviser" 8th place. In 2018, this figure was recorded at 37,583,191 thousand rubles. The growth of the 2019 indicator compared to the 2018 indicator is 1.4%.
In March 2020, SAP's global report published the total financial results of SAP CIS in euros, taking into account its full business volumes in the region. Turnover was €482.5 million with a rise of about 2%, but the company ended the year with a loss of €21.17 million after tax.
It is necessary to make a reservation that local legal entities of foreign vendors may not conclude all their contracts with customers directly, as well as contracts with local partners: some part of them may be concluded with foreign legal entities of the vendor. But earlier, market players with whom TAdviser spoke noted that the more priority the country has for the vendor, the more revenue from local business passes through his local office.
SAP has repeatedly emphasized the priority of the Russian market for itself. This was indicated, among other things, by the opening of the aforementioned SAP Labs in Russia in 2012 with its subsequent development, and the high degree of localization of products, the development of joint products in partners and even the inclusion of some of them in the SAP global price list.
At some point, SAP CIS also began to conclude more and more direct contracts with state customers in Russia. For example, in 2013, according to the Kontur. Focus database, the company entered into 4 such agreements directly, and in 2015 there were already 31. However, in 2019 there were already only 2 of them, and in the first half of 2020 - not a single one yet.
In 2019, Sheremetyevo Airport and ASE Engineering Company became SAP CIS clients under direct government contracts. With the first, an agreement was concluded for services for the development of a target architecture of SAP systems in the amount of about 11 million rubles, and with the second - for the provision of unlimited licenses for SAP software and services for its technical support in the amount of about 110 million rubles.
Alexander Vengranovich from Renaissance Capital suggests that one of the reasons for the reduction in direct contracts with state customers may be that SAP CIS, as a "daughter" of a foreign vendor, has become more difficult to work at tenders against the backdrop of an import substitution policy in Russia, so it places more emphasis on partners.
SAP CIS also did not comment on the dynamics of various areas of its business in 2019 in Russia. Andrei Filatov, who was appointed general director of SAP CIS in April 2019, agreed in May that both integration and consulting were to develop in 2019, which is related to the implementation of the Digital Economy program and the digitalization of[2] business[3]In his opinion, this is a very powerful combination that, with successful implementation, can transform entire industries: telecom, retail, banks.
Filatov also highlighted the clouds, saying that for several years we have been recording three-digit growth in this direction. Another notable trend, in his opinion, in the market was the formation of a new type of ecosystems: marketplaces, more resilient business interactions are created on the basis of new technologies. SAP just has all the tools to implement such ecosystems, said Andrei Filatov.
SAP CIS showed a loss in euros and reduced staff
CIS revenue SAP in 2019 amounted to 482.5 million euros, follows from the company's annual report published in March. Turnover growth was about 2%, but after two profitable years, the company ended the year with a loss of 21.17 million euros after taxes.
The staff of the Russian division of SAP decreased slightly in 2019: from 837 to 822 employees.
The Russian division of SAP is classified as key subsidiaries. Among all these in 2019, SAP CIS took 23rd place out of 28 in terms of revenue. In terms of loss in 2019, a number of regional SAP companies are ahead of their Russian subsidiary. Thus, its largest legal entity in the United States - SAP America - ended the year with a loss of 781.5 million euros on revenue of about 6 billion euros.
The reasons for the losses in SAP CIS did not comment on TAdviser at the time of publication of the material. In the annual report, the company classifies protectionist trade policies in countries such as Russia and China, as well as sanctions as economic, political, social and regulatory risks for itself.
It also notes that in the 3rd quarter of 2019, in particular, the Russian economy showed better results than expected.
As of mid-March 2020, the financial results of SAP CIS in rubles for the previous reporting period have not yet been published.
According to the Kontur. Focus database, in 2019 the company entered into significantly fewer direct government contracts with customers: only two against thirteen in 2018. Sheremetyevo Airport and ASE Engineering Company became its clients under direct government contracts. With the first, an agreement was concluded for services for the development of a target architecture of SAP systems in the amount of about 11 million rubles, and with the second - for the provision of unlimited licenses for SAP software and services for its technical support in the amount of about 110 million rubles.
2018: SAP CIS revenue rises to 472.5 million euros
The revenue of the SAP CIS division in the fiscal year 2018, which ended in December, amounted to 472.5 million euros, follows from the annual report of SAP, published in February 2019. Over the year, the turnover grew slightly: in 2017, it amounted to 468.4 million euros. At the same time, the profit of SAP CIS made a significant breakthrough: it grew more than 2.5 times, to 23.1 million euros.
The number of employees of the company increased slightly - from 826 to 837 people.
The Russian division of SAP is classified as key subsidiaries. Among all these in 2018, SAP CIS ranked 22nd out of 28 in terms of revenue and 17th in terms of profit.
There is no distribution of SAP CIS revenue by product segment in the report. Earlier, during a conference call between top SAP managers and analysts in the 3rd quarter of 2018, SAP CFO Luka Mucic noted a high growth in sales of cloud services and support services in the EMEA region, pointing to special successes in Russia and Germany in these segments.
At the same time, Muchich said that in Russia in the 3rd quarter there was a steady increase in revenue from software sales.
Among the largest state contracts of SAP CIS for 2018 are an agreement with Aeroflot for technical support services in the amount of 789 million rubles and an agreement with Sberbank for the supply of software in the amount of 120 million rubles, according to the Contour-Focus service.
In the annual report, SAP mentions Russia in the risk section, talking about trade sanctions and deteriorating relations between Russia and the United States. At the same time, the company sees prospects for economic recovery in the country in 2019 and improving demand, but emphasizes the dependence of the situation on oil prices.
2017
SAP CIS came out of loss and increased revenue in rubles
SAP CIS revenue in 2017 increased by 26% to 32 billion rubles, follows from the company's financial statements published in July 2018. Profit from the company's sales for the year increased to 2 billion rubles from 65 million rubles, and the net profit of SAP CIS for the past year amounted to 382 million rubles against a loss a year earlier.
The general director of SAP CIS Natalya Parmenova previously explained the growth in sales in Russia in euros by the fact that the country is now in great demand for new technologies, clouds, predictive analytics, solutions on the Internet of Things.
| | The introduction of these technologies changes the business processes of companies, which makes the new generation of SAP ERP systems more in demand, - said Parmenova. | |
She said that from a product point of view, the main contribution to the growth of sales of SAP CIS was made by cloud services, SAP Leonardo platforms and SAP S/4HANA. Business growth was also facilitated by the development of the SAP CIS ecosystem in Russia, the launch of projects to jointly create innovations with partners, said Natalya Parmenova.
The overall paradigm shift - digital transformation in companies - also contributed to business growth. Russian companies are preparing scenarios, projects for the use of modern digital technologies that they want to implement.
In 2017, SAP CIS maintained a tendency to conclude direct contracts with large customers. Of the state contracts, the largest are transactions with Russian Railways (volume - 720 million rubles), Aeroflot (566 million rubles), Rostelecom (435 million rubles, a framework agreement for the resale of services), Sberbank of the Russian Federation (about 395 million rubles), MUEC (233 million rubles).
Among the key customers of 2017, SAP CIS itself also named Norilsk Nickel, NLMK, Evraz, Megafon, Severstal, Kamaz, Uralchem, etc.
Revenue growth by a third to €468.4 million and return to profit
In 2017, SAP CIS revenue increased by about a third, amounting to 468.4 million euros. The Russian division of the German company returned to profit, recording it at 8.71 million euros after taxes. In 2016, losses of 5.5 million euros were received.
By the end of 2017, SAP CIS employed 826 people against 793 a year earlier.
As TAdviser was told in SAP, Russia became the most active market in terms of growth in revenue from cloud subscriptions and support, which the whole company jumped 51% under IFRS. In addition, the Russian market has registered double-digit growth in sales of SAP local software installed on client computers.
In 2017, SAP became the 25th year of operation in the Russian market. During that year, SAP CIS launched together with customers eight innovation laboratories, in which joint work on new industry solutions was established. In addition, the company announced plans to launch the Center for Digital Leadership in Moscow in order to develop the ecosystem and open the first educational centers where students can develop their own projects with the support of company specialists.
2017 will also be remembered by SAP for the fact that the company has transferred to the Russian data center the cloud platform for developing SAP Cloud Platform (SCP) applications and SAP Hybris cloud solutions for e-commerce, marketing and customer relationship management. In addition to them, SAP Integrated Business Planning, SAP Learning applications, SAP SuccessFactors and SAP Hana Enterprise Cloud are located in the Russian cloud. From 2014 to 2017, SAP doubled its investment in the development of a data center in Moscow. The volume of SAP investments in the opening of the Russian data center amounted to 20 million euros.[4]
Double-digit growth in software sales in Russia
Sales revenue software SAP Russia in fiscal 2017 saw double-digit growth. This was announced by the CFO of SAP (Luka Mučić Luka Mucic) during a conference call with top managers of the company and analysts at the end of January 2018.
According to Muchich, in the EMEA region, the Netherlands also showed double-digit growth rates of software revenue in addition to Russia.
The SAP financial director also cited data that along with Germany and Spain, Russia was among the countries in the EMEA region, where sales of cloud services showed the highest growth. Total revenue growth from cloud services sales in EMEA for 2017 was 48%, and from sales of cloud services and software combined - 7%.
The Russian office of SAP told TAdviser that in the 4th quarter of 2017 they moved the SAP Cloud Platform development platform and the SAP Hybris portfolio of solutions to their Russian data center. Thanks to this event, according to company representatives, at the end of the year, sales of these services increased several times. In addition, customer demand for the SAP Hana Enterprise Cloud cloud service has significantly increased, SAP CIS added.
| | It is worth noting that the transfer of the solution is always an incentive for sales growth, since the most relevant products for this market are transferred to local data centers. For example, thanks to SAP Hybris solutions, our Russian customers will be able to move to a new level of digital marketing through personalized interaction with the client, building active sales systems and analyzing consumer behavior on social networks. And on the cloud platform SAP Cloud Platform, solutions will be created using the latest technologies in the field of the Internet of Things, blockchain, machine learning, big data analytics, information security, etc., - said TAdviser in SAP CIS. | |
Among the largest direct contracts of SAP CIS in 2017 - a deal with Russian Railways to provide software licenses in the amount of 720 million rubles, with Rostelecom in the amount of 435 million rubles for the provision of cloud services for subsequent provision to end users on a subscription basis and with Sberbank in the amount of about 395 million rubles for the provision of a subscription to the SAP Ariba cloud service.
Triple-digit growth in software sales in Russia in the 2 quarter
Revenue from sales software SAP Russia in the 2nd fiscal quarter of 2017 showed three-digit growth rates. This was announced by the CFO of SAP (Luka Mučić Luka Mucic) during a conference call with top managers of the company and analysts on quarterly results. Comparing financial results in your SAP reports typically results in a year-to-year percentage.
According to Muchich, along with Germany, Russia was ahead of all in the EMEA region in terms of the growth rate of revenue from cloud subscriptions and support. In the region as a whole, this segment of SAP business grew by 48%, the CFO reported.
Globally, SAP revenue from cloud subscriptions and support grew 29% year-on-year in Q2 2017 and from software sales by 5%.
SAP CIS confirmed to TAdviser that in the 2nd quarter there was such a growth rate that the company's CFO speaks about, but decided not to answer clarifying questions.
The high growth rate of sales of cloud services in SAP CIS was reported both in 2015 and in 2016. Among the cloud applications for which there was the greatest demand in Russia, in 2016 the company called, for example, the solution for managing personnel resources SuccessFactors (it was called a "sales hit" in Russia by the company).
2016
Revenue growth in rubles - 11%
The revenue of the Russian representative office of SAP (SAP CIS) in rubles in 2016 increased by 11%, said the general director of the company Pavel Gontarev at a press conference in April 2016.
In the product context, one of the key drivers of SAP CIS business growth was cloud services - their sales, according to Gontarev, increased by 153%. SAP CIS is developing sales of cloud services from its local data center in Moscow, based at Rostelecom. From it, customers have access to SuccessFactors, Ariba, Hana Enterprise Cloud, SAP IBP (Integrated Business Planning) solutions.
For 2017, the company also plans to deploy a line of Customer Engagement & Commerce solutions in the data center, which includes products for omnichannel interaction with customers and managing their work, automation of loyalty programs and service management, automation of retail outlets, etc. Also, the SAP Cloud Platform development platform should become available from the cloud.
The CEO of SAP CIS told TAdviser that from a product point of view, in addition to clouds, the general growth in the company's turnover was facilitated, for example, by the demand for solutions based on the SAP Hana platform and products for e-commerce and omnichannel.
Over the year, the company has 74 new clients, a significant part of them are organizations of the medium and small business segment. Vertically, more than 70% of the industries in which SAP CIS operates showed growth, Gontarev cited the data.
Earlier, in March, TAdviser, citing SAP's annual report, wrote that SAP CIS revenues in euros in 2016 remained almost the same as in 2015, while the company suffered losses in euros (see the story below). At an April press conference, representatives of SAP CIS responded laconically about this. Pavel Gontarev noted that the data on their company in the SAP global report are based on local accounting reports, and that the Russian office is quite pleased with the result achieved in Russia.
TAdviser also previously wrote that in 2016 the number of SAP CIS staff increased significantly - from 659 to 793 people. Pavel Gontarev explained to TAdviser that the expansion of the staff was primarily due to an increase in the number of employees of the industry expertise service: it includes experts on the use of SAP technologies in various industries. The company also hired people who promote and sell clouds.
Pavel Gontarev chose not to give a forecast for the dynamics of SAP CIS turnover in terms of figures for 2017. At the same time, he told TAdviser that in 2017 the company "has a good market feel."
| | The market, in our opinion, should grow this year, and we again expect an increase in ruble revenue. The cloud direction will continue to grow, this is undoubtedly. Sales of SAP S/4Hana will also grow. They will also show the growth of Internet of things technology and machine learning, but in this case, this is growth from a low base, since these areas are new for us on the Russian market, "Gontarev said in a conversation with Tadviser. | |
Regarding the latter, the CEO of SAP CIS had in mind new portfolios of solutions that the company launches on the Russian market in 2017: SAP Leonardo - for the Internet of Things and SAP CLEA - a package of solutions for machine learning technologies. Pavel Gontarev also announced this at a press conference.
In addition, SAP CIS said that in 2015-2016. SAP invested more than 18 million euros in localization, adaptation to Russian legislation and joint innovations with customers. SAP is working on localization together with the largest clients, partners and government agencies, including the Federal Tax Service and the FSS.
In addition to the results of its activities in 2016, SAP CIS announced a paradigm shift in which the company operates and the related strategic goal until 2020: to transform from a provider of business applications into an "innovation partner" for its entire ecosystem. To do this, SAP develops a partnership format such as developing joint solutions.
Among the steps towards this goal are the development of joint solutions together with Rostec and NCI, the creation of a laboratory of joint innovations with NLMK, the development of security solutions for the Internet of Things with Kaspersky Lab, the integration of the Yandex.Maps API into the SAP Transportation Management solution.
Losses in euros 5.5 million euros
The revenue of the SAP CIS division (SAP CIS) in 2016 amounted to 355.7 million euros, follows from the annual report of SAP, published in March. At the weighted average euro exchange rate for 2016, this is about 26.5 billion rubles.
The company's turnover remained almost at the same level as a year earlier: in 2015 it amounted to about 356.5 million euros.
As a year earlier, SAP CIS was at a loss - after tax, it amounted to about 5.5 million euros. The loss turned out to be significantly less than in 2015: then the company went into minus by 18.6 million euros.
In 2016, the number of SAP CIS staff increased significantly - from 659 to 793 people.
In 2016, SAP CIS continued to work directly with customers. Among the largest direct transactions is a contract for services with Sberbank in the amount of more than 1.5 billion rubles. SAP CIS also performed work for Sberbank on migration to the SAP ERP on HANA platform under an agreement worth over 80 million rubles.
Other large direct contracts include services for the support and development of Aeroflot's management system in the amount of 453 million rubles, the provision of software maintenance services in MUEC in the amount of more than 233 million rubles, access to cloud data processing services for Alros in the amount of about 126 million rubles, etc.
Major partnership projects for the implementation and support of SAP solutions include the creation of a capital construction project management system based on SAP solutions in Atomenergoproekt in the amount of 860 million rubles, services for maintaining SAP information systems in Rosneft in the amount of over 750 million rubles. In 2016, Gazprom signed a contract for the supply of SAP software licenses for 2.2 billion rubles with its subsidiary Gazprom Transgaz Yugorsk, for which they are intended.
At the time of publication, SAP CIS could not comment on the results of its activities for 2016 indicated in the global report.
| | It seems to me that after the devaluation of the ruble, the Russian market is "relatively stable." From this point of view, everything is right. The reduction in loss is also understandable by the struggle for efficiency. So the result is not bad, but also not too good, - Sergey Matsotsky, Chairman of the Board of IBS, assessed the financial results of SAP CIS in a conversation with TAdviser. - The economic situation for SAP is relatively favorable, but if real import substitution occurs, it may deteriorate. | |
In 2016, Russia showed signs of economic recovery, but overall the nature of development remained slightly negative, SAP said in its annual report. Sanctions against the country are mentioned in it as one of the factors negatively affecting the market.
In the global turnover of SAP, SAP CIS accounts for about 1.6%. In addition to Russia, SAP CIS oversees 10 more countries: Kazakhstan Azerbaijan, Belarus Ukraine, Uzbekistan Turkmenistan, Kyrgyzstan, Georgia, Armenia and Tajikistan. At the same time, Kazakhstan and Ukraine have individual legal entities that appear in global reporting, but in 2015 and 2016. SAP did not indicate revenue on them. Revenue from CIS countries, where the company has no offices, is not included in the reporting of the Russian office.
Russia is one of the main turnover generators for SAP in. In EMEA this region, about 30% of annual revenue in 2016 was accounted for. Germany The remaining revenue was mainly brought by,,, the France Italy Netherlands, Russia, and, Switzerland Great Britain according to the SAP report.
Of the 24 divisions that SAP identifies in the annual report as the main ones, the Russian revenue office is in 21st place and in 18th place in terms of the number of employees. Of the regional divisions, the largest turnover in 2016, as before, was at the SAP office in the United States - about 4.9 billion euros. He also had the largest loss - 328 million euros, which, however, decreased over the year. In addition to the United States, regional branches with the largest turnover, over 1 billion euros, include SAP Deutschland, SAP France and SAP UK.
Share in the market of ERP systems in Russia
In 2016, among the leading suppliers of enterprise management information systems (ERP, etc.) in the Russian market, SAP ranks first with a share of 49%. In second place remains "1C" remains SAP with a share of 32.9%. Microsoft has 8.8%, Oracle has 4%, Galaxy has 2.2%. The rest of the players account for 3.2%.
Share of suppliers in the Russian ERP/ISUP market by sales in US dollars in 2003-2016,%
2015
Drop in revenue to 356.5 million euros, loss 18.6 million euros
In 2015, the revenue of the Russian division of SAP (SAP CIS) decreased by 4% - from 371.6 million euros to 356.5 million euros, follows from the company's annual report published in March. At the same time, the company came out in the negative: its loss, taken into account after taxes, amounted to 18.6 million euros. The number of employees of SAP CIS by the end of the year was 659 people, reducing by 86 employees.
The total turnover of SAP at the end of the year amounted to 20.793 billion euros. Thus, the share of SAP CIS in the total revenue of the company amounted to about 1.71%.
| | At the same time, in May 2016, it became known that at the end of 2015, the total sales of SAP partners increased by a record 84% compared to 2014, and the total number of companies that signed a partnership agreement with SAP CIS increased by 35%. The number of S4HANA partners increased - by 75%, for Cloud solutions - by 225%. The training program for consultants "20-15" in six years made it possible to double the ecosystem, thus, 20 thousand SAP consultants in Russia and the CIS were trained at the training center. | |
The annual report, citing world analysts, notes that low oil prices, weakening positions ruble and economic sanctions had a negative impact on the Russian IT market: its fall is estimated at about 15%. It also cites analysts' expectations that IT spending in Russia could improve in 2016 and grow by about 6% as a result of short-term stimulus measures from outside. states
Of the 23 SAP branches that the company identifies as the main ones in the annual report, Russia is in 22nd place in terms of revenue and in 19th place in terms of number of employees. The most revenue in 2015 was brought by the SAP America division in the United States - more than 4.5 billion euros. However, it turned out to be the most unprofitable, going into minus by 402.3 million euros. Other branches with the largest sales volumes are SAP Deutschland, SAP France. The company has the largest staff - 6.11 thousand employees - in the American division. The largest number of the state is in the American division. About 7.2 thousand people work there.
The financial results of SAP divisions in other CIS countries are not presented in the report for 2015, unlike the previous report.
SAP CIS told TAdviser that they are generally satisfied with the financial results in Russia and the CIS countries. The company explained the "accounting" loss on the legal entity of SAP CIS LLC, reflected in the global reporting, to TAdviser, on the one hand, the peculiarities of accounting and accounting policy of SAP CIS, and on the other hand, the impact of ongoing investments in Russia and the CIS countries. Of the investment-intensive projects of last year, SAP CIS notes the costs of opening data centers, developing the ecosystem and human resources potential and localizing products.
The company recalled that globally SAP is also pleased with the results of the Russian division: "We believe that SAP has shown strong results in Russia, and we are glad that we will continue to operate in this market," said Rob Enslin, SAP President of Customer Service worldwide, member of the Board of Directors of SAP SE.
Earlier in March , Rolf Schumann, SAP CTO in EMEA&MEE, noted in a conversation with TAdviser that he estimates the result of 2015 in Russia compared to the previous year as quite stable: "The economic and political situation in Russia remains difficult, but against this background our business in Russia can be called stable. Of course, SAP could have performed better had it not been for external difficult circumstances. "
Schumann also noted that against the background of the crisis in the country, customers have significantly reduced the number of innovative projects, of which there were many in different industries just two years ago: "Now it is difficult to expect that, for example, oil and gas companies will be additionally equipped with sensors and implement the latest scenarios" Internet of things. " Companies talk about interest in innovation, but budgets for these purposes have been postponed until better times. " At the same time, customers continue to invest in projects aimed at supporting key business processes, he added.
According to Rolf Schumann, SAP does not have a special strategy during the crisis in Russia, but the company began to show more flexibility and adaptability here, making them part of its main processes. So, for example, in supplies that may be difficult due to sanctions, the company looks at each case what options for solving the problem may be. He also told TAdviser that SAP and a number of Russian partners are discussing how to combine their software with their products so that as part of partner solutions it can enter the register of Russian software.
The chairman of the company's board IBS Sergey Matsotsky , in a conversation with TAdviser, said that the drop in revenue by only a few percent in euros against the background of the current situation in Russia can be considered an excellent result. In his opinion, it is difficult to find a large company in Russia that would end the result with a similar dynamics in euros. According to Matsotsky, a loss in companies such as SAP is a very subjective issue, especially if judged by a separate country.
Increase in ERP market share to 48.9% with sales of $312 million
According to the data, IDC the volume of the market for software enterprise management information systems (, ERP ON ISUP) Russia in 2015 in dollar terms decreased by 30.6%, in ruble terms - increased by 10.5%. In dollar terms, the market volume amounted to $639.5 million.
There were no changes in the top five suppliers of ERP systems, but the shares were redistributed somewhat. Market leaders - SAP and 1C - have improved their positions.
SAP increased its share from 48.4% in 2014 to 48.9% in 2015,
"1C" - from 30.9% to 32.7%.
Shares of Oracle and Microsoft decreased, Oracle - from 4.9% to 4.4%, Microsoft - from 9.4% to 8.7%.
The share of "Galaxy" remained at 2.1%. The share of other vendors decreased from 4.3% to 3.3%.
Revenue from direct government contracts SAP in Russia increased 17 times
In 2015, the number and volume of government contracts that SAP CIS (SAP CIS LLC) concluded with state-owned companies and institutions directly increased significantly. According to the Kontur. Focus database, which accumulates open data on public procurement, the total volume of government contracts concluded with SAP CIS for this period amounted to more than 3.5 billion rubles. In 2014, SAP CIS entered into government contracts in the amount of about 190 million rubles plus a contract for 172 thousand euros (about 11.56 million rubles at the weighted average euro exchange rate). Thus, the volume of directly concluded state contracts for SAP CIS increased by about 17 times.
Most of the contracts were concluded with customers working in the oil and gas, energy, and financial sectors. The largest direct transactions for SAP CIS in 2015 were contracts with Rosneft for 704 million rubles (SAP Product Support for Large Enterprises Supplementary Maintenance Agreement)Sberbank for RUB 456 million (audit and system optimization services in preparation of production systems for industrial operation under the strategic program "ERP Implementation") and Rostelecom for 435 million rubles ( providing cloud services to provide end customers on a subscription basis).
In 2016, SAP CIS continued to enter into direct transactions of this kind. For example, the company signed an agreement with Aeroflot for services for the support and development of an information management system based on SAP software in the amount of 453 million rubles. A contract in the amount of 71 million rubles for the supply and maintenance of SAP software was concluded with the Krasnoyarsk Non-Ferrous Metals Plant named after V.N. Gulidov, in the amount of 49 million rubles for the provision of services for the implementation of SAP ERP in terms of production management - with RT-Inform.
In 2014, the largest direct transactions in this segment for SAP CIS, according to Kontur. Focus, were contracts with Sberbank for 105 million rubles (works on the AS "Corporate Credit Limits Management System" ("Credit Limits"), "Greenatom" for 25 million rubles (consulting services for training SAP users ) Tyumenenergo for 23.9 million rubles (software supply and support).
SAP CIS itself refused to comment on the dynamics of direct government contracts. Representatives of the largest SAP solution support outsourcers interviewed by TAdviser confirm the noted trend.
Natalya Tatarnikova, head of the integrated information systems and information security division of Atriniti (part of the Asteros group), notes that if we talk about the supply of software licenses, SAP CIS has previously acted as a general contractor and contractor, involving integrators in projects already under subcontract. In the context of shrinking markets, this trend has only intensified, besides, large customers seek to build their work with vendors directly, she says.
This makes it possible to get the maximum discount from the developer and combine the best world practices and successful experience in introducing systems, create new approaches to managing business processes, including on the basis of new products, the expertise on which Russian companies may have limited, the representative of Atriniti argues.
Another factor in the growth of demand from the public sector, in her opinion, could be the introduction of restrictions on the purchase of foreign software, which partly created additional demand for accelerated implementation of solutions.
| | This is confirmed by data from IDC analysts, who claim that SAP's total revenue in the Russian market grew by almost 12% to 19.2 billion rubles. The potential for further growth is also high: SAP is one of the few vendors that is ready to invest in the full localization of its products and the development of specific industry solutions for large state corporations in the format of a joint venture (Gazprom, Russian Railways). In the future, 3-5 years, this will certainly provide, if not strong financial growth, then stability in terms of revenue and customer base, "Tatarnikova said. | |
She added that some vendors gravitate towards straightening supplies without the participation of integrators. This became especially noticeable last year, when the unstable economic situation forced the entire IT market to tighten its belts. In the context of austerity of IT budgets, customers have become more demanding on the choice of a service provider, the competencies of consultants, the results of projects, the expert argues. At the same time, direct contracting does not always imply the work of only the vendor's own consultants.
| | The expertise of integrators within the framework of some projects may be unique, and therefore is also actively involved. This is a classic approach that provides the developer with margin control and project management, and the customer with a result guarantee and high-quality technical support, - said the representative of Atriniti. | |
A representative of another major SAP partner, who chose to remain anonymous, believes that legislative import substitution initiatives spurred demand for SAP solutions in 2015. Initially, they covered the public sector, but we are talking about extending the initiatives to state-owned companies. Until import substitution is fully operational, customers from these categories, interested in the development of their SAP-based systems, are striving to take advantage of the opportunity to purchase the necessary software, the interlocutor of TAdviser believes.
At the same time, when purchasing software and services in very large volumes, such customers, as a rule, want to get special price conditions. According to the same source, for such cases, the German vendor has such a concept as "exception" (exclusion from the price list). In each case, "exception" must be coordinated with the German SAP office. It is easier and faster to agree on exceptional conditions and get them if you conclude a direct contract with the vendor, without the participation of third parties, the source notes.
According to the interlocutor of TAdviser, the trend towards an increase in direct SAP transactions can also be explained by the desire of the Russian division to improve its financial performance against the background of a difficult economic situation. Large contracts improve the picture, and it is more profitable for the vendor to conclude them directly without paying a commission to partners, says a representative of an SAP partner.
2014: Drop in revenue from €445m to €371.6m
According to the SAP report published in March 2015, in 2014 the revenue of the Russian division of the company (SAP CIS) decreased by about 16.5%, from 445 million euros to 371.6 million euros. Its post-tax profit rose from €14.2m to €19.2m. The company's staff decreased by almost 90 people over the year - to 745 employees.
A significant increase in turnover in 2014 in Russia was demonstrated by the SAP Labs development division - from 9.65 million euros in 2013 to 23.2 million euros, but at the same time it showed itself unprofitable, going into minus by 1.15 million euros. The direction of the SAP e-commerce business turned out to be unprofitable: the Russian division of Hybris reached a minus of 79 thousand euros, while in 2013 it showed a small profit. At the same time, Hybris revenue for the year increased from 290 thousand euros to 1.9 million euros.
SAP Ukraine, reporting to SAP CIS, showed negative profit indicators in 2013, and in 2014 the situation only worsened: the company's revenue in this market decreased from 35.4 million euros to 27.7 million euros, and the loss increased from 1 million euros to 3.9 million euros. The company also worsened financial performance in Kazakhstan, the loss of SAP Kazakhstan, also subordinate to Russian, increased from 1.1 million euros to 1.3 million euros, and revenue fell to 18.8 million euros from 20.2 million euros.
The SAP report refers to the unfavorable economic situation in Russia by 2014 and its impact on the Russian IT market as a whole: "The growing conflict in Ukraine, international sanctions and falling oil prices have collectively slowed down the growth of the Russian economy, especially in the second half of the year." With reference to IDC analytics, the document notes that the Ukrainian crisis had a noticeable impact on the entire IT market in Central and Eastern Europe, where it was on the verge of stagnation. In Russia, the total growth of the IT market amounted to only 0.1%, the data are given in the report.
The chairman of the company believes IBS Sergey Matsotsky that the fall in SAP revenue is not surprising, taking into account the economic situation in the country. Moreover, taking into account it, the indicators achieved by SAP look even good, he said in a conversation with TAdviser. Sergei Matsotsky does not exclude that by the end of 2015 the fall in the company's turnover in Russia may be even higher.
President of KORUS Consulting Group Alexander Semenov, in a conversation with TAdviser, noted that in 2014 in Russia, revenue fell from many IT vendors calculating their turnover in euros and dollars. This is quite natural and expected, given the current economic situation and currency fluctuations last year. If you recalculate SAP revenue in rubles, perhaps the indicators will be much better, he suggested.
"The growth of SAP profits against the backdrop of an unfavorable economy suggests that the company is able to effectively manage costs in a crisis. In my opinion, SAP CIS managed to assemble an excellent team both in terms of management and in terms of sales. As for the latter, I would call it one of the strongest and most effective sellers on the market, "said Alexander Semenov.
Asteros is also not inclined to dramatize the decline in SAP revenue in Russia. Due to the difficult economic situation in the country, which entailed a reduction in consumer activity, a suspension of financing or a complete freeze of budgets, the volume of the IT market in Russia decreased. The imposed sanctions on a number of companies forced the business to revise its strategy, but Asteros does not consider this a signal to reduce interest in SAP products, a company representative said in a conversation with TAdviser.
"Thereis currently no fully functional replacement for SAP on the Russian market," Asteros believes. "In an effort to maintain its position, SAP is doing absolutely the right thing to bring new cases to the market in the Russian Federation, taking into account the current geopolitical situation. Business, in turn, is looking for opportunities to ensure sustainable work for the period of trade restrictions. These are steps towards, arising from a sober assessment of the current situation and forecasting possible scenarios for the development of events. "
Timur Borodulin, Director of the Corporate Management Systems Directorate of ITSC, expressed to TAdviser the opinion that the SAP solutions market is characterized by a high degree of customer maturity, and a stage has already been passed when SAP solutions were implemented to maximize process coverage. On the one hand, there is a shortage of funds, on the other hand, customers understand their needs, projects for the implementation of individual products, often innovative, have begun to prevail, but which have the maximum effect for the business, he believes.
Later, in April 2015, the Russian representative office of SAP commented on TAdviser local financial indicators reflected in the global report for the past year. SAP CIS stated, in particular, that these figures are accounting and, according to the company, they are not entirely correct to operate.
Vyacheslav Orekhov, General Director of the Russian representative office of SAP, said that in 2014 SAP in Russia significantly increased the number of new projects, and while a reduction in revenue was reported in global financial statements, in fact, its small but growth took place in rubles.
Orekhov clarified that several factors influenced this. One of them, for example, is that contracts that are concluded by the Russian representative office with OEM-model partners are not taken into account in local circulation, since they are legally concluded directly with any of the European representative offices of the company.
In addition, for example, SAP has set a fixed euro rate of 53.5 rubles, according to which Russian customers pay for software support services. In rubles, this direction showed an increase, while in terms of euros at the average annual rate there was a decrease in turnover. Support services account for a significant part of the company's turnover in Russia, so they also influenced the overall result reflected in the global financial statements, added to SAP CIS.
2013: Revenue €445.1 million (+ 10 %)
In 2013, the revenue of the German manufacturer of ERP systems in the CIS (excluding Kazakhstan and Ukraine) amounted to 445.1 million euros, follows from the company's documents. In 2012, this figure reached 402.8 million euros. Thus, over the year, sales growth was at the level of 10%. Total sales in the Moscow office, in Kazakhstan and Ukraine exceeded 500 million euros. Profit after Tax in 2013 was slightly lower than in 2012 - 14.2 million against 16.6 million euros.
At the end of 2013, SAP CIS had 834 employees. Over the year, their number increased by 85 people.
Among other things, the dynamics were affected by the fact that the Russian ruble in 2013 fell significantly against the euro.
In Russia, there is also a division of SAP Labs CIS (engaged in software development). Its revenue in 2013 amounted to 9.6 million euros (393 thousand in 2012), profit - 38 thousand euros (12 thousand), the number of employees - 114 people (5).
In addition, SAP is now consolidating in its reporting the performance of the developer of e-commerce solutions Hybris Software, bought in the summer of 2013. In Russia, sales of this company for 2013 amounted to 290 thousand euros, profit - 11 thousand euros.
Separately, SAP considers performance indicators in Kazakhstan and Ukraine. These divisions have been unprofitable for several years, in 2013 the company lost 1 million euros in each of them (over the year, losses approximately tripled).
At the same time, the Ukrainian division increased sales from 28.3 million euros in 2012 to 35.4 million euros in 2013, and SAP Kazakhstan's revenue in 2013 decreased from 27.7 million euros in 2012 to 20.2 million euros in 2013[5].
In the total income of SAP CIS, the first place is occupied by the sector of enterprises of the oil and gas industry, the second place - the electric power industry, the third - the mining and metallurgical complex. According to growth rates, the public sector in 2013 grew by 228%, transport - by 162% (investments in projects for enterprises in this sector were made in 2012); electric power industry - by 50%.
SAP traditionally operates in many vertical markets. In 2013, another vertical was added to the rather extensive list - support for the sport. Now SAP HANA technology is used by McLaren Group (sports racing), NBA National Basketball Association (North America), Race Across Russia is the organizer of a two-week bike ride in Russia.
The SAP partner ecosystem continues to strengthen in Russia and the CIS. It includes more than 12 thousand consultants. Compared to 2012, sales of partners increased by 40%. The share of the partner business in the total sales of SAP CIS is about 35%. Sales of OEM model partners tripled. The number of partners in classic SAP solutions increased by 16%, and the number of partners in innovative solutions of the company increased by 73%.
SAP CIS plans to develop cloud technologies - this is the basis of the company's technology strategy. It is planned to create and launch a "cloud" model CRM and HR on the market. HANA will exist as a "cloud" service. The company's specialists intend to assist their customers in migrating their ERP systems to the platform. HANA
2012: Revenue growth of 14%
In mid-February 2013, SAP CIS (SAP CIS) summed up the results of work in the region for the previous fiscal year. The company reported a total income growth of 14.2%, the fastest growing areas among others were software sales (plus 14.8% in annual comparison) and customer support services (17.2%).
In 2013, the company intends to step up outside the Russian borders and systematically increase its presence in Kazakhstan, Ukraine and Belarus, as well as expand the ecosystem, said SAP CIS CEO Vitaly Postolatiy.
[[Image:Erpshares.jpg|840px|center|frame|Доли крупнейших игроков российского рынка ERP-systems, 2003-2012[6]
In 2012, SAP's industrial business lines in the CIS developed significantly. Thus, it was possible to increase sales of software solutions in the oil and gas sector by almost 30%, by 15.8% in the chemical industry, and in the discrete and transport industries by 207.9% and 123%, respectively.
In 2012, the demand for SAP solutions increased from fast-growing companies, and from year to year the share of these companies in the structure of SAP's client base is constantly growing. Sales of SAP solutions in this segment increased by about 40% compared to the results of 2011. The segment of fast-growing companies includes about half of the deals made in 2012 (157 out of 312).
An important initiative in 2012 for SAP CIS was the opening of its own SAP Labs development center, where, for example, together with customers from the oil and gas industry, the concept of "electronic field" is being developed, which will allow them to improve the operational efficiency of oil and gas companies. Work is underway on other tasks, for example, on the management of transport.
As for the development of the partner network, the company's business through partners increased by 49.5%, including a threefold increase in their indicators in Ukraine and Belarus and a 30% jump in Kazakhstan. In 2012, 20 partner companies at least doubled their business. By the end of 2012, the partner ecosystem consisted of approximately 10 thousand consultants. In 2013, it is planned to additionally prepare almost 2.5 thousand, and by the end of 2015, bring the number of consultants in the partner ecosystem to a record 20 thousand.
2011
Revenue growth in Q3 by 60%
Russian revenue SAP grew in the third quarter of 2011 compared to the same period in 2010 by 60%, including revenues from sales - software by 100%, SAP told Vedomosti[7] deputy general director[7] SAP representative office Russia in Russia and the CIS set[7]. The Vyacheslav Orekhov sale of software accounts for 65-68% of revenues, he specified, but did not name the absolute indicators. SAP's revenue worldwide grew in Q3 2011 by 14% to €3.4 billion.
In 2010, the entire Russian market for integrated enterprise management systems (ERP) was, according to IDC, $649.4 million (+ 31.9% compared to 2009), and SAP ranked first (50.5%). In total - taking into account revenues from services, training, etc. - SAP earned about $400 million in Russia in 2010, a source close to it said.
Orekhov explains the rapid growth in the third quarter by the start of sales in Russia of innovative products (mobile applications that allow you to monitor business remotely, cloud services), as well as the introduction of technology that significantly speeds up data processing. SAP also entered into a number of large contracts - in particular, on the supply of software to Sberbank. Of all transactions with Russian banks, this is a record for SAP, Orekhov said.
The amount of the transaction is about $36 million, says a source close to one of its parties. Perhaps it was thanks to Sberbank that the Russian SAP showed such an increase in the third quarter, a representative of one of its competitors suggests.
Sales of SAP products through the Technoserv group of IT companies increased in the third quarter of 2011 by 30%, says its representative Ekaterina Andreeva; the main sales fell on the financial sector and mining industries. For IBS, sales of SAP implementation services will grow by 30-35% this year, and in 2012 growth may reach up to 40%, IBS CEO Sergei Matsotsky predicts. But IBS does not sell the software licenses themselves, he draws attention, and the IT consultant's business develops more evenly.
SAP's main Russian competitor is 1C: IDC estimated its share in the Russian ERP market in 2010 at 26%. Its 1C:Enterprise 8 system is focused on the mass market, so its sales do not depend so much on individual large contracts and are more evenly distributed across periods, says 1C spokesman Alexei Kharitonov. In the first nine months of 2011, revenue from sales of this system in dollars exceeded the level of the same period in 2010 by 78.7%, he said.
Revenue structure by CIS countries
Revenue of SAP CIS subsidiaries under IFRS (EUR million)
| 2008 | 2009 | 2010 | 2011* | |
| SAP CIS, Moscow | 232,3 | 197,6 | 278,5 | 343,3 |
| SAP Ukraine | 19 | 8,9 | 13,3 | 20,3 |
| SAP Kazakhstan | 8,6 | 7,2 | 12,3 | 39 |
| Total | 259,9 | 213,7 | 304,1 | 402,6 |
Source: SAP AG Reporting, (*) - Calculated Values
2010: Contract with Gazprom, 53% increase in turnover, 84% increase in software sales
2010 was a record year for SAP in Russia. The turnover of its Russian division increased by 53%, including from the sale of software - by 84%. One of the reasons is a large contract with Gazprom, according to[8] market participants[9].
According to IDC estimates, according to the results of 2010, SAP is the leader in the Russian business solutions market with a share of 50.5%.
In 2009, the CEO of SAP CIS Vladislav Martynov promised that the company's turnover in Russia (the value of all signed contracts) would add 30% over the year. In fact, the growth in turnover (in euros, taking into account sales through partners) amounted to 53%, and in the software sales segment - 84%. Big investments in IT made Gazprom"," Rosatom"," Sberbank"," Aeroflot"," Rosneft"," "," "," "Severstal TK" Tatneft Megapolis. " New customers also appeared - for example, in the public sector (where SAP turnover grew by 250% over the year) and among (+ banks 370%). Their contribution to the turnover of SAP CIS amounted to 17% in 2010.
Martynov did not name the absolute indicators, but noted: at the end of 2010, the Russian division was recognized as the most successful in SAP, and in terms of its contribution to the corporation's total revenue, it took 5th place in the world (after the USA, Germany, Great Britain and Brazil) and 3rd in Europe. The Russian division of SAP reached its highest position in the third quarter of 2006 - No. 3 in the world.
Perhaps SAP overtook the market thanks to a contract with Gazprom for a period of five years, suspects an employee of one of SAP's competitors. According to managers of two IT companies, the volume of this contract is close to 100 million euros. SAP growth factors could be one-time projects with very large customers, as well as sales growth of CRM and business analytics, adds IDC analyst Petr Gorodetsky. Even without taking into account the contract with Gazprom, the growth in software sales is impressive - 35%, Martynov answers.
49% was the share of ERP systems in SAP turnover from the sale of software in Russia in 2010. Until now, it has always exceeded 50% - in particular, in 2009 it was 64%. Last year, 51% of the turnover fell on other solutions - CRM, human resources management systems, business analytics, regulatory risk control systems, etc.
One of the goals set by SAP for the Russian office in the fall of 2009 (when Martynov headed it) was the transformation of the SAP CIS business and growth in the crisis market by expanding its presence in the financial and public sectors and among small and medium-sized enterprises. In 2010, SAP sales in the segment of small and medium-sized companies increased by 69.8%, says Martynov, in 2010 they provided 11% of turnover in Russia. He explains this by the more active connection of partners - system integrators, whose share in SAP software sales increased over the year from 20 to 30%. In addition, SAP itself launched a number of marketing initiatives: it introduced a more flexible licensing model, fixed prices for products and their implementation, began to offer potential customers free of charge to calculate the cost-effectiveness of implementing their software, and actively promote business analytics. "Now we are comparable in sales in the segment of Russian small and medium-sized businesses to Microsoft," Martynov said. At the end of 2010, Microsoft radically - by 73% - reduced the recommended retail price for the Microsoft Dynamics NAV ERP system for small and medium businesses.
In 2009, the ratios of direct and partner sales amounted to 80% and 20%, in 2010 direct sales accounted for 70%, and the share of partner sales increased to 30% of the total level. The growth in the share of revenue from sales of solutions for medium and small businesses in 2010 was 69%. The number of 2010 transactions concluded through partners increased by 68%. SAP considers it important to work to ensure that the partner ecosystem develops in a balanced way, both in terms of regional coverage and partner competencies. In 2010, the total number of SAP CIS partners specializing in the implementation of classic ERP solutions increased by 52% and reached 97. The number of partners in business intelligence solutions grew by 104% to 67 companies. In 2010, SAP CIS had 49 new partners, half of which operate in the regions of Russia. 80% of SAP implementation projects in Russia and the CIS are carried out by the resources of the company's partners.
In 2010, the fastest growing sector for SAP in Russia (as in EMEA) was the energy sector (the vendor unites energy generating, sales, etc. companies into the Utilities group), SAP EMEA Vice President Maher Chebbo told CNews. The company has developed two Utilities architectures - for regulated (as until recently in Russia) and liberalized (as now) electricity markets. Interestingly, for customers in this industry, power management software grew twice as fast as classic SAP systems. This refers to Enterprise Management (ERP), Company Assets (EAM), and Customer Relations (CRM). According to Chebbo, now software of the EDM (Energy Data Management) and AMI (Advanced Metering Infrastructure) class is already forming about a quarter of the revenue from the total sales to Russian customers. The same number falls on the long-standing and already listed ERP, EAM and CRM. EDM and AMI sales dynamics will continue in the coming years, Chebbo said. So far, such solutions at different stages are being introduced only by power engineers of the Belgorod and Samara regions, he says. "I see interest in Russia in energy networks that allow you to take into account and save electricity. Power engineers start projects with classic software for us, and then reach EDM and AMI. We are already working on this topic in Belgorod, where licenses were bought, as well as with Samaraenergo, where 'smart meters' and software for working with them are planned for the future after the introduction of the main traditional modules'.
See also
Notes
- ↑ SAP’s quarterly revenue beats estimates, trims 2022 profit outlook
- ↑ [https://www.kommersant.ru/doc/3967474 the SAP Strength in Complexity
- ↑ . ]
- ↑ SAP Annual Report 2017 on Form 20-F
- ↑ SAP CIS increased revenue, but reduced profit. In Kazakhstan and Ukraine - losses
- ↑ 1C offensive on corporate market stopped?]]
- ↑ 7,0 7,1 7,2 that the
- ↑ [http://www.vedomosti.ru/newspaper/article/255112/sap_pribavila_gazu SAP
- ↑ , added gas]
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