HANOVER, Germany German business software group SAP (SAPG.DE) is ahead of plan in getting to its 2015 sales target as it continues to win market share, its co-chief said on Tuesday.
"Compared to our competitors our business is doing better. We target to have sales of more than 20 billion euros ($26 billion) by 2015. At the moment we are ahead of our plan to get to that target," co-Chief Executive Jim Hagemann Snabe told Reuters in an interview.
SAP's original target was to reach 20 billion euros in sales by 2015, but the firm increased the outlook at the end of last year to 'at least' 20 billion euros.
Hagemann Snabe said he expected to win market share this year. "We have the strongest pipeline ever," he said.
SAP, based in Walldorf, southern Germany, is betting on faster growing, web-based software products that are less vulnerable to the economic downturn as there are no upfront costs for program licenses, hardware or installation.
With these so called 'cloud services' SAP expects to help companies to enter the Chinese market. SAP also hopes to get a listing in China but is not in a hurry.
"We have expressed our interest to the Chinese authorities but it is also important for us to work on the basis of international accounting principles (IFRS)," Snabe said.
China has been talking about the launch of an international segment on the Shanghai Stock Exchange. It was about to kick off the new board in the second half of 2011 but the move was delayed by the euro zone debt crisis.
"We just have to wait what happens next in China," Snabe said.
SAP expects operating profit this year to be 5.85-5.95 billion euros at constant currencies, up 12-14 percent from 5.21 billion in 2012. ($1 = 0.7687 euros)
(Reporting by Peter Maushagen; Writing by Harro ten Wolde; Editing by Peter Dinkloh)