The Internet of Things and I4.0 is an Evolution. New Markets (e.g. maintenance hub operator) Data Driven. Services. (e.g. predictive.

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1 Industrie 4.0 and Internet of Things July 9, 2015

2 The Internet of Things and I4.0 is an Evolution Business Impact 40-50% CAGR for M2M market until 2020* IoT Space Data Driven Services (e.g. predictive maintenance) Services (e.g. equi. maintenance) Products New Markets (e.g. maintenance hub operator) Digital Product Enhancements (e.g. equi s w/ sensors) Traditional Business Digital Business New Business Models (e.g. pay per use; uptime) New Business Business Evolution 2015 SAP SE or an SAP affiliate company. All rights reserved. *Source: Gartner Top 10 Tech Trends Internal for

3 SAP s Strategy for Industrie 4.0 and IoT -- IT/OT Convergence Partners IoT/I4.0 Solutions SAP Application enablement platform Data and device mgmt. platform Adaptive Logistics Digital Object Memory Moving Assets Smart Factory Augmented Reality Smart Data Energy Management Remote Service Management Predictive Quality Predictive Maintenance Output based monetization R&D Logistics Manufacturing Sales Service Vertical Integration Connectivity SAP HCP IoT Services, SAP Plant Connectivity, SAP MobiLink and others Intelligent Assets DCS PLC MES Plant DB Plant Data Collection Plant Historian Wireless Integration LIMS SCADA / HMI Environmental Building Management Sensors 2015 SAP SE or an SAP affiliate company. All rights reserved.

4 SAP HANA Cloud Platform Foundation for IoT/Industrie 4.0 IoT/Industrie 4.0 Cloud End Customer (On site) Device Connector (SAP / Partner) Machine Integration HANA Cloud IoT Services IoT Applications (SAP, Partner and Custom apps) HANA Cloud Integration Process Integration Business owner (SAP Customer) Business Suite Systems (ERP, CRM, etc.) HANA Cloud Platform Services ( like Analytics, Text Mining, Spatial, Data Quality, Mobile) In-Memory Engines Data Processing Extended Storage Storage Hadoop Streaming HANA Big Data Platform 2015 SAP SE or an SAP affiliate company. All rights reserved. Internal 4

5 SAP Solutions for IoT/I4.0 (Examples) Predictive Maintenance & Service Vehicle Analytics Connected Logistics Asset Information Network CNC Machine Analytics Connected Manufacturing Augmented Reality 2015 SAP SAP SE SE or or an an SAP SAP affiliate company. All All rights reserved. 5

6 Example: KAESER Company Process Innovation Kaeser Compressors is one of the largest providers of compressed air systems and compressed air consulting services. IT / OT Connectivity Condition Monitoring Remote Service Fault Pattern Recognition Machine Health Prediction Situation: changed the business model from selling compressors to selling compressed air through the Sigma Air Utility service. Create Service Order Schedule Order Execute Order on mobile device Visual Support Solution Compressors equipped with sensors SAP Predictive Maintenance & Service with Machine Health Fact Sheet SAP HANA SAP CRM Service on HANA Benefits IoT as an enabler for the new business model Improved availability of compressor stations Move from unplanned to planned maintenance 2015 SAP SAP SE SE or or an an SAP SAP affiliate company. All All rights reserved. Internal 6

7 IoT/I4.0 is a Reality Examples of SAP Customers SAP SAP SE SE or or an an SAP SAP affiliate company. All All rights reserved. Internal 7

8 Additional Information SAP Internet of Things SAP Internet of Things Oliver Edinger Vice President Head of IoT/I4.0 Germany SAP Deutschland SE & Co. KG Hasso-Plattner-Ring Walldorf M T E oliver.edinger@sap.com SAP SE or an SAP affiliate company. All rights reserved. Internal 8

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