SAP S/4HANA, on-premise edition 1511 Functional Overview (Level 2 details)

, on-premise edition 1511 Functional Overview (Level 2 details) Version 20151116 Customer

Disclaimers DISCLAIMER This presentation outlines our general product direction and should not be relied upon in making a purchase decision. This presentation is not subject to your license agreement or any other agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or to develop or release any functionality mentioned in this presentation. This presentation and SAP s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including, but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP intentionally or grossly negligent. SAFE HARBOR STATEMENT This document is intended to outline future product direction, and is not a commitment by SAP to deliver any given code or functionality. Any statements contained in this document that are not historical facts are forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The timing or release of any product described in this document remains at the sole discretion of SAP. This document is for informational purposes and may not be incorporated into a contract. Readers are cautioned not to place undue reliance on these forward-looking statements, and they should not be relied upon in making purchasing decisions. 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 2

Agenda Introduction in the new digital and networked world What is?, on-premise edition 1511 Product Map, on-premise edition 1511 Business Scope for Finance, on-premise edition 1511 Business Scope for Materials Management and Operations Innovation Highlights Platform for all industries Built-in Analytics The Road to Discovery Workshop SAP Activate Further Information 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 3

Introduction in the new digital and networked world

Digitize beyond the core, embrace the digital economy Digital economy Digital core Digital transformation Internet of Things Big Data Business networks User empowered Instant insight I Contextual information I Personalized experience Process enriched Scalability I Real time I Prediction I Simulation Segment of 1 Lot size of 1 At scale Devices Live data Granular I Responsive I Accurate No latency Social networks People Traditional core value play Leading-edge processes I Integrated system value play Digital transformation of business models 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 5

Run Simple with the digital business foundation of the 21st century Workforce Engagement Supplier Collaboration Business Networks Recruit and onboard the best workforce, simplify their work, and ensure regulatory and compliance Manage the total workforce lifecycle from recruiting, onboarding, performance, compensation, and learning Enable the workforce to easily access the right information across any device Big Data & Internet of Things The Digital Core Drive digitized mission-critical business processes across all operations Get instant business insight on one single source of live information on any device Predict and simulate to anticipate future business outcomes Leverage the broadest business network for travel and entertainment, direct and indirect material, labor, and services Leverage services from partners to vastly extend the value of core offerings Operate on a global basis, meet data security standards, and operate at industry best standards Customer Experience Omnichannel Drive new business insight by capturing and analyzing real-time information on Big Data Embed device data across the value chain to create new business models Leverage an open innovation platform to quickly integrate, extend, and build innovative apps (on premise, in the cloud) Orchestrate business processes across marketing, commerce, sales and service Deliver personalized experiences in context for each interaction Create a single, harmonized experience for your customer, while reducing the burden on employees SAP HANA Cloud Platform 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 6

The digital value network interconnects all aspects of the value chain in real time to drive business outcomes Workforce engagement Supplier collaboration business networks Smarter and engaged workforce across all employees Supplier collaboration to accelerate growth Harness Assets & Internet of Things to drive real-time insights and new business model Outcome-based consumer experience Assets & Internet of Things Consumer experience omni-channel SAP HANA PLATFORM Re-platform core business processes, and bring together business process and analytics in real time to be smarter, faster, and simpler 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 7

reimagines businesses for the digital economy The entire value chain is digitized including the digital core which serves as the foundation for business innovation and optimization. Workforce Engagement Supplier Collaboration and Business Networks The digital enterprise interconnects all aspects of the value chain to drive and anticipate business outcomes in real time. The Digital Core Enterprises across industries can lead the digital transformation by completely reimagining business models, business processes, and work. Big Data and Internet of Things Customer Experience Omnichannel 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 8

SAP Fiori User Experience Responsive Design Key capabilities of a SAP FIORI Designed Screen Example: Consolidation of activities, Intelligent navigation patterns, Intuitive usability Contact data Credit data: UKM_BP Personalized postit notes Trends & analytics at a glance Simulation Full customer contact history Decision Support Personalize layout variants Context-dependent actions Example: MRP Cockpit - Material Shortage 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 9

Simplified for Human Desirability SAP Fiori Offering an beautiful, role based, integrated user experience with modern usability based on mobile first principle. Example : Clear incoming payments User Activity SAP GUI SAP Fiori % Reduction Duration 2.25 min. 1.07 min 53% Clicks 49 22 55% Screen changes 26 1 96% Fields filled 9 3 60% 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 10

Key Benefits of Technology Real Time Eliminate batch processing, data reconciliation Responsive Improve user satisfaction by reducing wait time Predictions Discover and respond to future opportunities and challenges Drilldowns Analyze at any level without exporting data Simulation Explore the impact of business decisions on outcomes Recommendations Built-in data driven decision support systems 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 11

What is?

Our Next-Generation Business Suite Enterprise Management build the next-generation business suite» Innovative in-memory Database» New architecture and data models» Renewed applications» New UI technology» Cloud & on-premise deployment models» Natively integrated is a new product line (it is not a legal successor of any SAP Business Suite product) The classical SAP Business Suite & SAP ERP is a separate product line and will still be available. 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 13

: The Customer Has The Choice On-Premise Edition Cloud enterprise edition Traditional licensing with customer control of deployment and maintenance. Subscription licensing with deployment in the private cloud, maintained by SAP on-premise is already available with the combination of Suite on HANA with an exchange innovation add-on for Simple Finance. As of Q4/2015 we are introducing SAP S/4HANA Enterprise Management solution. The scope of this solution is close to a full ERP scope (Business All in One scope) however focusing on supporting standard scenarios. Cloud marketing edition Cloud project services edition Subscription licensing with deployment in the private cloud, maintained by SAP Providing simplified key scenarios with a clear focus and priority on the cloud qualities, which are guaranteed across all UIs and all processes to ensure that a true SaaS solution is offered. 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 14

The Digital Core Suite Introducing the next generation core and lines of business solutions for the digital economy FINANCE HUMAN RESOURCES MANUFACTURING SUPPLY CHAIN ASSET MANAGEMENT Enterprise Management The Digital Core SALES SERVICE MARKETING SOURCING & PROCUREMENT RESEARCH & DEVELOPMENT FORMERLY KNOWN AS SIMPLE LOGISTICS 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 15

, on-premise edition 1511 Product Map

Enterprise Management Product Scope Streamlined Procure to Pay Accelerated Plan to Product Optimized Order to Cash Enhanced Request to Service Core Human Resources Core Finance Supplier Information and Master Data Production Engineering and Planning Order and Contract Management Service Master Data Management Cross Application Time Management Accounting and Financial Close Sourcing and Contract Management Operational Procurement Inventory and Basic Warehouse Management Production Operations and Execution Inventory and Basic Warehouse Management Product Development and Project Control Inventory and Basic Warehouse Management Receivables Processing Service Management Service Parts Management Service Agreement Management Cost Management and Profitability Analysis Invoice and Payables Management Maintenance Management Quality Management Cross Topics Integration Enterprise Technology Analytics v.39 / Product Map 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 17

Service Research and Development End-to-end Business Processes Service Master Data Management Technical Assets, Structures, History Service Task List and Catalogs Service / Maintenance Plan and Event Scheduling Service Management Service Initiation Service Planning and Scheduling Service Execution and Delivery Service Control Service Billing and Settlement Claims, Returns, and Refund Management Service Parts Management Service Parts Warehousing Service Parts Fulfillment Product Development and Project Control Project Financials Control Project Logistics Control Product Development for Discrete Product Design for Process Industries Monitor your Project KPIs Maintain status or milestones Service Agreement Management Contract Management Warranty Management Key Innovations & Highlights Reduce project cost through better transparency and better financial traction The services data model relies on the proven data model of the SAP ERP. Most of the user interactions have a web front end (e.g. WebGui, WebDynpro) New data base capabilities such as operational analytics enabling the replacement of traditional service reporting requirements Confirm Project activities Resolve issues in seconds 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 18

Human Resources End-to-end Business Processes Cross Application Time Management Time Sheet Key Innovations & Highlights Integrate time capturing processes in your digital core system, to save effort and time and reduce error rate Simplified timesheet: FIORI user experience for easy assignment of the workforce to workpackages and to record times Ensure legal compliance by assigning correct working time for billing and invoicing processes (single source of truth) Minimized errors with new SAP Fiori HTML interfaces natively on any device SAP HCM Integration / SuccessFactors Integration: Access a comprehensive suite of solutions across all talent processes: recruiting, onboarding, learning, performance and goals, compensation, succession, and development n the cloud Leverage workforce analytics to gain actionable insights for strategic workforce decisions. A new abstraction layer via CDS HANA views to access employee for have joint dashboard / reports and processes irrespective. 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 19

, on-premise edition 1511 Business Scope for Finance

The Digital Core Finance Introducing the next generation core and lines of business solutions for the digital economy FINANCE HUMAN RESOURCES MANUFACTURING SUPPLY CHAIN ASSET MANAGEMENT Enterprise Management The Digital Core SALES SERVICE MARKETING SOURCING & PROCUREMENT RESEARCH & DEVELOPMENT FORMERLY KNOWN AS SIMPLE LOGISTICS 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 21

Finance Accounting Operations End-to-end Business Processes Accounting and Entity Close Accounting Entity Close Financial Reporting Accounting General Ledger Asset Accounting Inventory Accounting Accounts Payable Accounts Receivable Contract Accounting Revenue and Cost Accounting Cost Management & Profitability Analysis Cost Management Product Cost Management Profitability & Cost Analysis Access all AR or AP info via Cockpit Manage items from the list Key Innovations & Highlights Optimize working capital by providing insight into business partner interaction with new Accounts Payables and Receivables Cockpits 2 34 77 Embedded templates & forms to streamline customer interaction Real-time insight on the fly with pre-built analytical views for KPI & Dashboard reporting Access all documents & forms 4 and save >60% time Analytical & KPI dashboards provide access to transactions for immediate action Minimized errors with new SAP Fiori interfaces Quick access to all related documents and forms, cross LoB 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 22

Finance Unified Ledger & Fast Close End-to-end Business Processes Accounting and Entity Close Accounting Entity Close Financial Reporting Accounting General Ledger Asset Accounting Inventory Accounting Accounts Payable Accounts Receivable Contract Accounting Revenue and Cost Accounting Cost Management & Profitability Analysis Cost Management Product Cost Management Profitability & Cost Analysis Accelerated Soft & Hard Close Simplified Journal Entries Key Innovations & Highlights Ultimate single source of truth for instant insight and easy customer extensions ONE line item table with full detail for all applications Secondary cost elements as G/L accounts, earlier derivation of market segment Flexible Journal entry analyzer 4 Multiple related documents accessible Data stored only once: no reconciliation needed by design Simplified posting of journal entries Improved soft close and hard close Significant speed-up of asset depreciation run 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 23

A comprehensive Portfolio for the CFO Covering All Business Areas Across All Roles Finance - delivers functional completeness across all financial roles Chief Financial Officer VP of Finance Head of Corporate Reporting Corporate Treasurer Head of Finance Operations Chief Compliance Officer Financial Planning & Analysis Accounting & Financial Close Treasury & Financial Risk Management Finance Operations Enterprise Risk & Compliance Management Strategy Development and Translation Accounting Payments and Bank Communications Receivables Management Enterprise Risk Management Planning, Budgeting and Forecasting Entity Close Cash and Liquidity Management Invoice Management Controls and Compliance Management Profitability and Cost Management Corporate Close Debt and Investment Management Travel Management International Trade Management Monitoring and Reporting Reporting and Disclosure Financial Risk Management Real Estate Management Fraud Management Financial Close Governance Commodity Risk Management Financial Shared Services Audit Management 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 24

SAP Business Planning and Consolidation Cost Simulation Maintain primary costs of cost centers Cost Simulation Example Scenario Maintain the input / output relations in a network of cost centers based on fixed amounts or quantities Simulate the final distribution of costs as part of the planning cycle High speed of simulation via planning function SAP HANA 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 25

Local Systems Central Finance Deployment Option Centralization of A/R reporting and central A/R process orchestration Real-time operational reporting with Fiori user experience with cross-system view of customer account Central dispute management Cross-system root cause analysis Drill-down takes you back to local system logistics object Central collections prioritization and team management SLT: Open Items & Clearing Status ALE / Web scenarios View linked logistics document Post credit memo Process receivables (local open items) A/R reporting: Customer Analysis Finance deployed as Central Finance Credit Management Dispute Lists Real-time operational reporting Collections Worklists Promises-to-pay documented locally Correspondence pulled from local system Central credit evaluation and management Check central credit limit Update credit exposures SAP HANA Local systems report customer credit exposures via existing ALE scenarios Central system calculates/manages credit limits Central credit reporting 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 26

, on-premise edition 1511 Business Scope for Materials Management and Operations

The Digital Core Materials Management and Operations FINANCE HUMAN RESOURCES MANUFACTURING SUPPLY CHAIN ASSET MANAGEMENT Enterprise Management The Digital Core SALES SERVICE MARKETING SOURCING & PROCUREMENT RESEARCH & DEVELOPMENT FORMERLY KNOWN AS SIMPLE LOGISTICS 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 28

Manufacturing Asset Management End-to-end Business Processes Manufacturing Operations Production Processing Basic Subcontracting Basic External Processing Quality Management and Compliance Corporate Quality Quality Planning and Control Quality Operations Maintenance Maintenance Planning and Scheduling Maintenance Execution Monitor Production Orders Manage Component issues & shortages Key Innovations & Highlights Leverage non-disruptively ERP Manufacturing capabilities via WebGUI Monitor production order regarding flow and critical issues Reduce cycle time by optimizing material flow for internal requirements (MRP) Enterprise-wide visibility across with new stock overview Manage the subcontracting process from planning to execution and monitoring Create, track & request maintenance needs by any employee or operator with new UI Quality management with simplified inspection planning, defect recording, flexible and harmonized action management, supporting a standardized complaint processes New search for related documents Simplified selected stock postings 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 29

Supply Chain Production Planning End-to-end Business Processes Production Planning Basic Order Promising Material Requirements Planning Production Planning Production Scheduling Core Distribution Requirements Planning Key Innovations & Highlights Reduce cycle time by optimizing material flow for Internal requirements (MRP) Manage External & Internal Shortages Simulate supply alternatives Trigger system-generated solution proposals Gather Real-time stock & material flow insight with pre-built analytical views Material Planner can easily simulate supply alternatives Manage and track change requests for orders Trigger immediate action 4 Manage & track change requests Easy to consume data model supporting flexible analytics Available to promise: New ATP algorithm based on HANA embedded in mass component check in production 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 30

Supply Chain Inventory End-to-end Business Processes Inventory and Basic Warehouse Management Goods Issue Goods Receipt Basic Warehouse Management Basic Shipping Key Innovations & Highlights Leverage simplified data model of inventory management for realtime, high-volume processing Track overall material flow Optimize individual flow Easy to consume data model supporting flexible analytics Real-time alerts based on current stock requirements situation Decrease stock buffers due to better transparency & insights Improve percentage on-time delivery Elimination of locking, increased throughput for standard price utilizing material ledger valuation, streamlining multi currency usage, and multiple valuation methods. Simplified Material views 4 Post material documents in a simple way Post of finest granularity like handling unit, lot size 1, sensor data Benefit from 40 digit material number extension Leverage just-in-time scenarios for outbound 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 31

Sales End-to-end Business Processes Order and Contract Management Sales Master Data Management Sales Contract Management Sales Order Management and Processing Billing and Invoicing Claims, Returns, and Refund Management Sales Planning and Monitoring Analytics 2 56 Key Innovations & Highlights Identify bottlenecks and issues with resolution proposals in the Sales Order Fulfillment Cockpit Gather Real-time insight on the fly with pre-built analytical views for sales process performance analysis, 30 SAP Smart Business KPI apps Reduce customer service & support cost by automating and streamlining return processes Leverage simplified data model for order and contract management SD Rebates replaced by Settlement Management Leverage quick access to all related documents and forms to streamline customer interaction and flow Leverage an optimize delivery via exception driven working model, no touch order Frictionless Order-to-Cash process performance monitoring - and take action if required Sales representative Roles (NWBC) replaced with Fiori roles Internal Sales Representative, Billing Clerk 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 32

Sourcing & Procurement Contracts & Self Service Requisitioning End-to-end Business Processes Invoice and Payables Management Invoice Processing Accounts Payable Invoice Collaboration Operational Procurement Requirements Processing Purchase Order Processing Service Purchasing Procurement Analytics Self-Service Requisitioning Purchase Order Collaboration Sourcing and Contract Management Source Assignment Operational Contract Management Supplier Information & Master Data Classification and Segmentation Supplier Evaluation Manage your Contracts in 1- step Use Self Service Requisitioning Key Innovations & Highlights Use self service requisitioning process to search and request goods in a crosscatalog search with consumer-grade user experience. Shopping Cart + Purchase Requisition simplified in one business object Manage your contracts E2E in one single cockpit Purchasing category as new business entity for Classification & Segmentation Use the possibility to load internal and external catalog content into HANA Integration to Ariba Business Network for sending purchaser orders, confirmations and advanced shipping notification as well as invoice and the status update of invoices Evaluate your 4 suppliers KPIs and integrate your Business Network 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 33

Sourcing and Procurement Operational Procurement End-to-end Business Processes Operational Procurement Requirements Processing Purchase Order Processing Service Purchasing Procurement Analytics Self-Service Requisitioning Purchase Order Collaboration Key Innovations & Highlights Reduce PO error rate by providing seamless access to related documents Turn purchase requisitions into purchase orders Use purchasing approval apps with all info in one single cockpit Leverage Real-time calculation of Procurement KPIs to analyze managed and non-managed spend, contracts, and suppliers Use standard integration to the Ariba Business Network for sending purchaser orders, confirmations and advanced shipping notification as well as invoice and the status update of invoices Approve PO s on any device Turn requisitions into orders Track the purchase 4 order flow and leverage your Business Network 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 34

Enterprise Management Key Innovations Inventory Management Material Requirements Planning Material Valuation Available To Promise & Backorder processing Capacity Planning Simplified data model resulting in increased through-put, flexible analytics at the most granular level. Fast MRP run, and new working model for MRP controllers based on decision support. Principle of One, scalable material valuation capabilities, utilizing Material Ledger, that way customers can use multicurrencies, valuation methods per different accounting laws like GAAP. Enhance ERP by advanced ATP capabilities in APO, new coding to make it better, innovation benefit as functionality will be refreshed. New deployment option for bringing PP/DS on ERP, reducing integration efforts, allowing seamless master data & UI harmonization. Order Management & Billing Enable monitoring of end-to-end order-to-cash process & take actions for any exceptions, information on the exceptions to resolve the issues, lower TCO due to data model simplification, support for the most recent versions of business features such as FSCM Credit Management, GTS Foreign Trade, SFIN Revenue Accounting, new analytical capabilities. Procurement Increased efficiency in the Procure-to-Pay processes, new Analytical Apps & Spend KPI s, Ariba Network Integration for PO Order and IV. This is the current state of planning and may be changed by SAP at any time. 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 35

Business Suite S/4HANA Simplification Example Sales and Distribution Inventory Mgmt. (Quantities) Inventory Mgmt. (Valuation via MBEW) Material Ledger (multi GAAP, multi currency) Accounting Export/import tables EIKP EIPO Primary Document tables VBAK LIKP VBRK LIPS VBAP VBRP VBFA Index tables VBUK VBUP Rebate index VBOX LIS tables S066 S067 Output mgmt NAST Status tables VAPMA VAKPA VLPMA VLKPA VRPMA VRKPA MSTQH MARD MSTEH MSTBH MSSQH MARC MSLBH MSKUH MSSAH MSKAH MKOLH MSTQ MCHBH MSPRH MARDH MARCH History tables Totals tables MSPR MSLB MSTE MSTB MSSQ MSSA MSKU MSKA MKOL MCHB MKPF Document MSEG MBEW OBEW Totals MBEWH OBEWH QBEW OBEW QBEWH OBEWH Totals CKMLPP CKMLCR CKMI1 Index Document MLHD MLIT MLPP MLCR MLPPF MLCRF COSP COSS COFIT COBK BKPF BSEG COEP GLPCT ZZFISLT GLPCA FAGLFLEXT ZZFISLA ANEK GLFUNCT FAGLFLEXA ANEP Totals BSIS BSIT BSIK BSID BSIM Indices BSAS BSAT BSAK BSAD GLFUNCA Documents COFIS Sales and Distribution Master Data Inventory Mgmt (Quantities) Material Ledger (multi GAAP, multi currency) Accounting VBAK LIKB VBRK VBAP LIPS VBRP VBFA Material MATDOC Material Prices BKPF ACDOCA SIMPLE DATA MODEL» Only main tables remaining, no redundancies» Clear separation of master data from transactional data» Reduction of memory footprint PRINCIPLE OF ONE» Only one valuation method (Material Ledger) instead of 2 (IM + ML)» Flexible rebate management instead of cumbersome and expensive redundancies THROUGHPUT INCREASE» INSERT only on database level (MM-IM), no locks for standard price valuation 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 36

Innovation: Real Time Inventory Management Business Challenges Business Benefits Capabilities» Low throughput prevents real-time inventory» Missing embedded and real-time analytics» Missing comprehensive data model» Process & data redundancies increase effort» Improve on-time delivery» Increase inventory turnover» Reduce cost of inventory (e.g. stock level, cost, place)» Single source of truth of inventory in one system» Attract end user by real-time accuracy» Real-time processing of inventory postings and visibility of inventory values» Posting of finest granularity like handling unit, lot size 1, sensor data» Decreased stock levels (e.g. reduce buffers) due to increased transparency» Easy to consume data model supporting flexible analytics» Manage the changing demand for smaller lot sizes passing through the logistic operations 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 37

Real Time Inventory Management Key benefits» Comprehensive stock overview per material on the time scale» Display of the most important inventory key figures 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 38

Innovation: Material Requirement Planning Business Challenges Business Benefits Capabilities» Increasing customer service» Low inventory accuracy» Revenue losses due to stock-outs» Poor on-time delivery performance» Missing parts in production» High safety stocks» Not sufficient exception handling concerning MRP planning results: Shortage / Over coverage situations, disruptions in the replenishment» Clear visibility across the material flow increases user acceptance and efficiency» Proactive decision making in response to changing demand» Flexible tailoring of available capacities and receipts to meet required quantities» Real time inventory monitoring and automating the creation of procurement proposals» Prioritized view on material flow issues» Real-time alerting based on current stock requirements situation» System-generated solution proposals» MRP can run as frequently as required (up to 10x faster)» Demand information is propagated faster through the supply chain 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 39

Fiori Launchpad Home screen of the MRP user Key benefits» Collection of transactional and analytical FIORI apps necessary for the daily work - 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 40

On the fly simulation and decision support Simulation Decision Support» Real time data from all areas of material management including procurement lead times, inventory stock availability, lot sizes, manufacturing scheduling and sales orders across multiple sites» Suggestion of potential solutions for the shortage through Solution Cards with all information needed to resolve the material shortage (e.g. Reschedule Purchase Order, Increase Purchase Order, stock transfers).» Real Time Simulation computes the future inventory situation in detail. The optimization algorithms make use of the simulation to find the ideal replenishment strategies» Daily work tasks focused on exceptions and on the most urgent problems with the highest financial implication 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 41

Decision Support & Solution Proposals Key benefits» Direct automatic decision support with various solution proposals how to solve the shortage situation» Direct further navigation possible to initiate an appropriate solution measure 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 42

Demand & Supply Planning for Manufacturing MRP Cockpit Monitor KPIs Receive Alerts on material shortages, late purchase orders etc. Material Planning View Identify most urgent and important issues, considering time to action and order values, priorities, and the like. Solution Proposals Choose from a set of preevaluated solution proposals. 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 43

Innovation Highlights

simplifies many Line of Businesses Finance Supply Chain R&D and Engineering Sales Manufacturing Sourcing & Procurement Asset Management Service Sustainability Marketing & Commerce Human Resources Information Technology 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 45

Key Business Innovations Re-architecting for in-memory platform Universal Journal Material Requirements Planning Inventory Management Material Valuation Accelerated Financial Close > 20 3 < 1 Laggards Best-in-class Target Sales Representative Order Management & Billing Procurement Clerk Material Planner Responsive user experience design Central Finance Available To Promise & Backorder processing Capacity Planning Industry solutions to core Unifying functionality in core This is the current state of planning and may be changed by SAP at any time. 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 46

to achieve the Perfect Enterprise Instant insight-to-action based on real-time information Re-architecting for inmemory platform No latency Unrestricted granularity Built-in harmonization Real-time and predictive Processes Continuous processing Real-time analytics Predictive forecasting Embedded simulation Simplification of entire solution Unique User Experience Preserving valuable functionality Build new solutions Discontinue not needed scope 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 47

Value Scenarios of Finance Real-time analytics enabling real-time processes Analyze Plan Transact Centralize Finance Real-time financial and operational reporting Harmonized internal and external reporting Group reporting in multi-erp and M&A situations Flexible reporting in matrix organizations Centralized process execution Close Books in a Day Plan Dynamically $ Optimize Working Capital Ensure Compliance Task acceleration and automation Intra-period reconciliation Soft close and simulation (planned) Integrated business planning Predictive forecasting Budget management (planned) Group cash management Working capital analytics Continuous cash collections Invoice and discount optimization Fraud detection and prevention Audit management 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 48

Accounting and Financial Close > 20 3 < 1 Laggards Best-in-class Target Universal Journal» Ultimate single source of truth for instant insight and easy customer extensions» ONE line item table with full detail for all applications» This replaces the logical document of release 1.0.» Secondary cost elements are now G/L accounts.» Data stored only once: no reconciliation needed by design» Reduction of memory footprint through elimination of redundancy. Accelerated Financial Close» Improved soft close and hard close» Real-time profitability by earlier derivation of market segment» Correct asset acquisition values at any time - now also for valuation areas with special items» Elimination of multiple reconciliation tasks due to the universal journal» Significant speed-up of asset depreciation run. Central Finance» Real-time replication of secondary CO postings from several source systems into a central system» Document drill back to the original FI document in the source system» Replication of cost objects (production orders, product cost collectors, and internal orders)» Mapping functionality for harmonization of master data (optionally via MDG solution)» Centralized error handling with the error correction and suspense tool. 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 49

SAP runs SAP in Finance & Controlling Benefits und KPI s Financial Close On SAP HANA 86% faster Real-time analytics Realtime 91 % faster Automatic Maintenance Revenue Accruals 17% faster Software and Maintenance Billing 67,000+ Users 420 Hours less processing time at quarter end close Revenue & Profit and Loss Reporting, Intercompany reconciliation 74 % faster Asset Depreciation 42% faster Automatic Cost Accrual Postings 173+ Operative entities and branches 1,300+ Colleagues involved in closing activities Search Type Ahead Search / Fuzzy Search 8 ½ day Closing, including group consolidation 100+ Closing activities every month/entity (in average) 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 50

Platform for all industries

Innovations: as a platform for all industries Business Challenges Business Benefits Capabilities» Adoption of industry specifics requires Add-on» Delay of availability of industry Add-on» High TCO» Missing harmonized supply chain capabilities cross industries» Speed of innovation» Reduced TCO» Simple integration into harmonized supply chain networks» Comprehensive solution offering to customers» Provide One broad platform for multiple industries» Provide harmonized shipment cycle to all customer of new releases» Platform for all industries, benefit for cross-industry 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 52

Discrete Manufacturing Industrial Machinery & Components Automotive Engineering Constructions & Operations Minimize resource usage, waste and industrial casualties Ensure accident free driving with zero emission operated vehicles Drive smart buildings and digitalization High Tech Aerospace & Defense Technology becomes affordable for everyone; responsibly Ensure security and mobility for everyone 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 53

Engineering & Construction, Aerospace & Defense & Mill Bill of Service Equipment Tools Management Grouping, Pegging & Distribution MRO Maintenance, Repair & Overhaul Mill Products Digital Core 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 54

All Automotive E2E Processes are in 1511 Core natively Integrated Product and Process Engineering Packaging Logistics Executing Inbound Deliveries Just in Time Just in Sequence Kanban: Enhancements for Automotive Parts Interchangeabilities / Supersession Production Backflush for Discrete Industries Self-Billing (Inbound) Evaluated Receipt Settlement Scheduling Agreement Processing Vehicle Management System Digital Core 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 55

Natively extended Material Number in In the material number will be natively extended to 40 characters DIMP customers do not need to use LAMA anymore Customers are flexible to use their own systematic Harmonized master data model across whole SAP portfolio 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 56

Built-in Analytics

real-time analytics architecture Foundation for new class of applications applications Operational Reporting Applications (incl. insight-toaction) Query Tools Zero latency! SAP HANA PLATFORM ABAP Layer SAP HANA Views Core Data Services (CDS) Hana Database Layer Physical Tables Atomic instantaneous Pre-defined 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 58

The Road to

: The Customer Has The Choice On-Premise Edition Cloud enterprise edition Traditional licensing with customer control of deployment and maintenance. Subscription licensing with deployment in the private cloud, maintained by SAP on-premise is already available with the combination of Suite on HANA with an exchange innovation add-on for Simple Finance. As of Q4/2015 we are introducing SAP S/4HANA Enterprise Management solution. The scope of this solution is close to a full ERP scope (Business All in One scope) however focusing on supporting standard scenarios. Cloud marketing edition Cloud project services edition Subscription licensing with deployment in the private cloud, maintained by SAP Providing simplified key scenarios with a clear focus and priority on the cloud qualities, which are guaranteed across all UIs and all processes to ensure that a true SaaS solution is offered. 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 60

Transition to The 3 Transitions Scenarios New Implementation Landscape Transformation Non SAP S/4HANA Migration of selected applications System Consolidation System Conversion S/4HANA Co-deployment of dedicated capabilities in one central system FI MM CO SD FI CO SAP S/4 HANA HANA SAP S4 HANA HANA Consolidation of current regional Business Suite landscape into one global system 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 61

Deployment Options High Level Stack Architecture S/4HANA Cloud & On-Premise Architecture differs from the classical Business Suite architecture compatibility is build in» Data structures (Compatibility provided through Core Data Services)» Application engines Fiori Shell S/4HANA ABAP Fiori Apps, ALV (UI5) Gateway Design Studio Analysis App Search R R R OData lna lna» UI layer (Launchpad / Fiori) (WinGUI still available for compatibility reasons) R R Transactional Logic Analytic Engine (Enterprise-)Search R R R HANA CDS View Suite Tables 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 62

Your way to Scenario 1 New Implementation Scenario Description New installation of e.g. for customers migrating a legacy system. Benefits for the customer Reengineering and process simplification based on ready-to-run business processes and reference solution delivered with the product New implementation of industry-leading Business Suite Pre-defined migration objects & Best Practices available in a guided process Legacy Any customers legacy system 1 What Install S/4HANA Option: Initial data load from Legacy or SAP System with DMIS / MWB How On-premise Edition SAP Fiori Core SAP HANA Cloud Edition SWPM (Software Provisioning Manager) Target group SAP Business Suite customers or net new customers 2 Initial data load from source system Data Migration Server / Migration Work Bench SAP source: system connection Legacy system: file upload; SAP Data Services additionally supported with predefined migration content 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 63

Your way to Scenario 2 System Conversion Scenario Description Customers who want to change their current system into a system. Database, NetWeaver and Application transition in one step. Benefits SAP GUI SAP ERP Core SAP Update Manager (SUM) with Database Migration Option (DMO) * On-premise Edition (SAP GUI) / SAP Fiori Core Migration without reimplementation AnyDB / SAP HANA SAP HANA No disruption for existing business processes Re-evaluation of customization and existing process flows Target group SAP Business Suite customers with SAP ERP or SAP Business Suite on SAP HANA as starting point * What Installation and migration How Rapid Database Migration of SAP Business Suite to SAP S/4HANA (all one step migration, including Finance Logistics and conversion) using SUM with DMO 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 64

Your way to Scenario 3 Landscape Transformation Scenario Description Customers who want to consolidate their landscape or carve out selected entities or processes into an existing system. Customer-specific migration project re-using standard migration content. Benefits Stay with current business processes and move gradually to innovations Harmonized business processes and shared master data through consolidation Carve out of single entities of the company to and leverage process simplification Target group SAP Business Suite customers with multiple SAP ERP or SAP Business Suite on SAP HANA systems, or hybrid cases 1 2 SAP GUI SAP ERP Core AnyDB or SAP HANA What Install (and configure) Carve Out SAP GUI SAP ERP Core AnyDB or SAP HANA How Selective Data Migration service (SLO) with SLT 2 On-premise Edition SWPM (Software Provisioning Manager) Selective Data Migration service (SLO) with SLT Individual harmonization project required 1 (SAP GUI) / SAP Fiori Core SAP HANA Cloud Edition 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 65

Your way to - Summary Scenario 1: New Implementation DESCRIPTION BENEFITS TARGET GROUP New installation of SAP S/4HANA e.g. for customers migrating a legacy system. New implementation of industry-leading Business Suite Reengineering and process simplification based on ready-to-run business processes and reference solution delivered with the product SAP Business Suite customers or net new customers Scenario 2: System Conversion DESCRIPTION BENEFITS TARGET GROUP Customers who want to change their current system into a system. Conversion without reimplementation No disruption for existing business processes Re-evaluation of customization and existing process flows Transformation over time SAP Business Suite customers with SAP ERP or SAP Business Suite on SAP HANA as starting point Scenario 3: Landscape Transformation DESCRIPTION BENEFITS TARGET GROUP Customers who want to consolidate their landscape or carve out selected entities or processes into a SAP S/4HANA system. Stay with current business processes and move gradually to innovations Harmonized business processes and shared master data through consolidation Carve out of single entities of the company to and leverage process simplification. SAP Business Suite customers with multiple SAP ERP or SAP Business Suite on SAP HANA systems, or hybrid cases 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 66

Simplification List Application-area-wise sorting of items Simplification List Master Data CRM Sales and Distribution Area Simplification Item Simplification Item Streamlined Procure to Pay Accelerated Plan to Product Optimized Order to Cash Enhanced Request to Service Procurement MM / SRM Logistics Simplification Item 5 Solutions + 3 Solutions + 3 Solutions + 4 Solutions + Finance HCM Area Simplification Item Simplification Item Core Human Resources Core Finance Basic Topics Cross Topics Area Simplification Item 2 Solutions + 2 Solutions + Simplification Item Basic Information Impact Related Services Description Edition / Release Category Description Recommendation Custom Code Customer Effort Service Offering 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 67

Integration & Conversion Strategy Services from SAP SAP Services will meet you wherever you are on your journey STEP 3A (New Customer) START STEP 1 STEP 2 Value Identification Workshop Planning Workshop 1 day 2-4 weeks Option A Option B Baseline Package Data Migration STEP 3B (Existing) Custom Code Migration Database Migration STEP 4 Innovation RUN SIMPLE 1 2 3 4 Technical SAP Fiori UX Finance/ Logistics Analytics 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 68

Discovery Workshop

Getting Started: Value Identification Workshop Plan your success» 1 to 1.5 day innovation focused workshop Learn the value of real-time business PLAN Identify key business scenarios VALUE IDENTIFICATION WORKSHOP» Best practices from SAP experts based on customer insight Accelerate adoption of your S/4HANA investment» Introduce innovation areas for your organization Match challenges to benefits of S/4HANA» Use a defined framework to discover business scenarios Move quickly from vision to realization 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 70

Project Plan and Timelines Inputs Innovation Kit sales deck Inputs Inputs Inputs Innovation Kit sales deck (business scenarios) POV Light document Workshop facilitation guide (agenda, check list, questionnaires Outputs from workshop Outstanding topics & questions SAP involvement SAP involvement SAP and Customer involvement SAP involvement Introduction Preparation Customer Workshop Follow Up Opportunity to discuss business scenario with a customer Opportunity to first shift the conversation from one of product to one of innovation Discuss approach, introduce innovation model, begin to vision Learn more about the customer s current situation Start to drill into standard business scenarios while identifying possible new ones Introduce the concept of a workshop Prepare and conduct the actual workshop with the customer Goal is to better define the customer s vision, appraise where they are and plan how they will achieve their vision Resolve with customer any outstanding topics left after workshop deep dive Develop final documents Propose to customer Outputs Outputs Outputs Outputs Possible follow up meeting PoV Light document Scheduled workshop POV Final document Planning document Final planning document Proposal for execution ~ 0.5 day 0.5 to 1 day 1 to 1.5 days ~ 0.5 day 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 71

Integration to existing Cloud Solution

Commitment to be Cloud Vendor #1 Organic development and acquisitions to drive customer success 2010 2015 Rise of the Middle Class Millennial Generation Internet of Things Cloud Mobile HCM Procurement Business Network Contingent Labor Management Digital Commerce Travel & Expense Management Digitized Commerce Business Suite HANA Business Warehouse powered by SAP HANA Business Suite powered by SAP HANA Simple Finance powered by SAP HANA Simplified data model New user experience Advanced processing Choice of deployment 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 73

On-Premise Cloud Integration & Migration Strategy integration strategy HCI SAP S/4HANA Cloud Edition HCI Non-SAP Cloud HCI, PI, SLT Business Suite HCI, PI, SLT and Others SAP S/4HANA On-Premise HCI, PI, SLT and Others Non-SAP Applications HCI = HANA Cloud Integration PI =Process Integration SLT= System Landscape Transformation 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 74

SAP Activate

A framework for Innovation Adoption Objectives Fast and less service intensive initial implementation of and continuous adoption of new innovations Standard functionality, control of updates/upgrades, extensibility Customer-specific extensions Simplify onboarding harmonization for cloud and on-premise deployments Cloud-like experience for the customer Fast scale-out of adoption into SAP and Partner ecosystem Establish long-term customer relationships for success - end-to-end engagement with Premium Engagement offerings 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 76

The Road to SAPACTIVATE is the combination of SAP Best Practices, tools for an assisted implementation and agile methodology to simplify the adoption of delivers ready-to-run business processes optimized for with a reference solution provides best practices for migration, integration and configuration for supports different starting points for customers to adopt - new implementation, system conversion and landscape transformation accelerates the initial implementation of SAP S/4HANA and is designed for continuous innovation 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 78

Summary

Summary Key Take Aways Text Mining Analytics & Prediction Simulation Decision Support Finance Materials Management and Operations NEW DEVELOPMENTS NATIVE HANA CAPABILITIES USER EXPERIENCE On-Premise Edition SAP S/4HANA Cloud Edition CHOICE OF DEPLOYMENT TECHNICAL INNOVATION 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 83

Further Information

Official road map content available on Service Marketplace Product Road Maps > Cross Product > S4HANA https://websmp102.sap-ag.de/~sapidb/012002523100006634812015e.pdf 2015 SAP SE or an SAP affiliate company. All rights reserved.

Where to go for more information sap.com/s4hana sap.com/s4hana-trial On-Premise edition trial Public Cloud Trial scn.sap.com/community/s4hana/ SAP Learning Hub https://go.sap.corp/s4hana_faq SCN Placeholder https://training.sap.com/g/en/ 2015 SAP SE or an SAP affiliate company. All rights reserved. Customer 87

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