Dairy Farm Selects SAP for Strategic Business Transformation

Leading Pan-Asian Retailer of Well-Known Brands Chooses SAP® for Retail Solutions to Support Growth and Better Serve Customer Demands

KUALA LUMPUR — Dec. 18, 2008 — Providing industry solutions on a single platform for optimized customer business processes, SAP AG (NYSE: SAP) today announced that Dairy Farm, a leading pan-Asian retailer, has selected SAP® for Retail solutions. With more than 4,300 outlets that include supermarkets, hypermarkets, health and beauty stores, convenience stores, home furnishing stores and restaurants in the Pacific Region and in China, the retailer selected SAP to support its growth plans and harmonize business processes across the region, in order to leverage existing innovations and efficiencies. Joining a growing number of global retailers who have chosen SAP over Oracle to drive competitive advantage, Dairy Farm will replace multiple in-house and third-party applications with SAP to provide a single information platform that will enable the company to focus its resources strategically and enhance service levels to consumers.

Dairy Farm is one of Asia’s most dynamic and reputable retailers, operating well-known brands such as Wellcome, Cold Storage and Hero supermarkets; Giant hypermarkets; Mannings and Guardian health and beauty stores and 7-Eleven convenience stores. As Dairy Farm continues to expand its customer-centric business model in Asia, the common information platform for merchandising will also provide the tools for tracking and managing future growth.

“Technology plays a significant role in the growth and success of our business,” said Jeff Shaw, regional director for South Asia, Dairy Farm. “We believe that SAP is a valuable software provider who will bring industry best practices and greater flexibility, as well as scalability, to our growing business based on thirty years of experience in helping global retail companies.”

Supporting Growth Through Strategic Business Transformation
The dynamics of the retail industry, including an increased need for convenience, breadth of product options and a vast array of shopping formats, are changing the buying habits of shoppers and placing an increased emphasis on producing a consistent and high-quality customer service experience. In parallel, with tighter margins, retailers must not only address process efficiency, shorten product cycles and improve in-stock performance, but fundamentally alter the shopping experience to drive customer loyalty. To support retailers’ drive for customer centricity combined with efficient business processes across the entire enterprise – from headquarters down to the store level – SAP offers an integrated solution portfolio, SAP for Retail, to enable strategic business transformation.

Supported by the flexible SAP NetWeaver® technology platform, SAP for Retail will help Dairy Farm anticipate, rapidly adapt and cope with fast evolving business needs and customer demands. In addition, SAP for Retail can enable operational excellence for Dairy Farm by supporting customer loyalty and providing real-time business visibility. It also reduces the total cost of ownership (TCO) through a platform that supports multiple channels simultaneously and incorporates best practices across functions.

Implementation for Dairy Farm has already started across three key markets in Asia, beginning sequentially with Malaysia, Indonesia and Singapore.

“Retailers around the world look to SAP to help them consolidate their operations to take their business operations to the next level,” said Geraldine McBride, president and CEO, SAP Asia Pacific Japan. “We are proud to be able to help Dairy Farm achieve its leadership and growth goals. By adding Dairy Farm to our ever-growing list of best-run retail businesses, we are increasing our depth of experience in the exciting APJ retailing segment.”