The CREATE OBJECT statement creates an object (instance) of the class C_COUNTER. The reference in the reference variable CREF_1 points to this object.

This instance of the class C_COUNTER is called C_COUNTER<1>, because this is how the contents of the object variable REF_COUNTER_1 are displayed in the debugger after the CREATE OBJECT statement has been executed. This name is only used for internal program administration - it does not occur in the ABAP program itself.