18Q4 L1 customer presentation September 2018 The New SAP Model Company Accelerate Your Transformation to the Intelligent Enterprise 18Q4 L1 customer presentation September 2018

Time to value is key in assuring a successful digital transformation ! Customer Challenge Unique Solution Customer Outcome Accelerated innovation adoption and simplification of the digital transformation Long, risky and costly implementation times Line-of-business (LoB) and industry-specific know how recognized as a need, not just nice to have Fast-changing business challenges requiring a flexible solution SAP Model Company service to deliver reference solutions from SAP Accelerated innovation adoption and simplification of the digital transformation Standardization Innovation Simplification Acceleration SAP Model Company Digital Business Framework Transform to SAP S/4HANA Accelerate implementation for faster time to value Adopt early and quickly – and free up resources for innovation

SAP Model Company | ready-to-run reference system Reference service State-of-the-art software service developed from successful transformation projects Industry and LoB specific 14 (+3) industries – examples Core retail Oil and gas Utilities Automotive suppliers Chemicals 9 (+3) lines of business – examples Connected manufacturing Supply chain planning Finance Human resources Logistics execution Applications combined with processes for industries and LoBs Ready-to-run service for fast time to value Basis for fit-gap analysis Accelerator for all project phases Fast and agile SAP Model Company is a ready-to-run preconfigured service containing accelerators to implement SAP solutions faster and gain speed, especially at the beginning of the implementation. Available for 23 industries or lines of businesses (6 planned), the SAP Model Company service portfolio is constantly being extended. Ready-to-run, preconfigured service Preconfigured end-to-end service Role-specific process diagrams Test scripts Demo scripts Implementation tools Sample data (for example, organizational model) Train-the-trainer workshops Enablement workshops

” SAP Model Company is the baseline for the entire SAP product portfolio, for on-premise single tenant & multi-tenant cloud or hybrid platforms, led by Industries and based on the LoB platform, fully interoperable – end- to-end.” SAP Model Company is the base for the SAP Product Portfolio and the starting point to consid.er when implementing SAP products

Use cases along SAP ACTIVATE phases SAP Model Company Use Cases and Offerings Tailored offerings for the customer lifecycle Use cases along SAP ACTIVATE phases Discovery “Help me understand the state of the art possibilities with SAP” Our offering: SAP Model Company Discovery Gain hands-on experience using any of the available SAP Model Companies for industry or LoB Get business user access to the selected SAP Model Company in the cloud (one at a time) Use process models and e.g. demo scripts to accelerate discovery and preparation *) Exclusive to SAP Premium Engagement customers Preparation “I want to prove my ideas and prepare myself with some hands-on experience” Exploration “How can I focus my solution design activities on innovation and differentiation” Our offering: SAP Model Company for [Industry/LoB] Accelerate your implementation with your own, dedicated SAP Model Company Get the full set of business content, process models, accelerators and enablement workshops Deploy your SAP Model Company appliance in the cloud (e.g. on AWS, HEC) or on Premise Use the Model Company with SAP Value Assurance or an individual consulting project* * available if the project is SAP-led; If the project is not led by SAP, the “Plan & Safeguard” Value Assurance package is required in combination with the Model Company service. Depending whether you have decided already for a SAP Model Company or you want to see it, you may opt for Discovery of the SAP Model Company solution first . In every phase you may benefit from the approach. Realization “I need to accelerate my implementation and eliminate risks of failure”

What is the Best Fit for Me ? | Transition Scenarios Greenfield ‘I am new to SAP, but I am not sure the SAP solution is for me, cloud or on-premise ?’ Check availability (Release Plan) Get a Demo or Discover the service Start your project in the Cloud, if necessary deploy on-premise Brownfield ‘I need to become agile, fast and innovative and need to re- think my SAP | heterogenous landscape ?’ Check availability (Release Plan) Discover the service Migrate or re-implement (back-to- standard to upgrade easier Rollout to subsidiary | acquisition ‘I want to replace the homegrown system in a Sales Office?’ Start your project in the Cloud Whether you start with a greenfield approach from scratch or a you decide to migrate your existing systems into SAP Solutions starting with SAP Model Company, there are options to accelerate your decision making process. SAP-led | Partner-led | Co-led Partner-led with SAP Value Assurance to safeguard the business value SAP-led | Partner-led

Service Engagement Models for SAP S/4HANA transformations Featuring SAP Model Company Partner Led with SAP Value Assurance SAP Co-led Deployment with Co-Design Service SAP Advanced Deployment SAP prime SAP engages customers and partners through Value Assurance services Tight collaboration between SAP and partner help bring cost efficiency SAP expertise promotes optimal risk management SAP partners with customer and System Integrators SAP services focus and complement partner services regarding strategic business capabilities, innovations, and leading edge functions Position Value Assurance as the transformation foundation SAP leads the customer’s strategic transformation program or project Benefit from end to end SAP services to ideate, innovate and realize value Position Value Assurance as the transformation foundation for large primes, optional for small primes SAP Model Company as the foundation for acceleration, standardization and innovation

Faster Time-to-Value Predictable Results Faster Adoption How do your customers benefit from SAP Model Company Services? Customer Value Proposition and Benefits Foster an early, fast, and successful adoption of SAP S/4HANA and the digital transformation for your customers. Fully working system with industry specific configuration at the start of the project. Faster Time-to-Value Predictable Results Avoid unnecessary modifications by evaluation and testing standard functionality. Faster Adoption Accelerate and simplify implementations with proven methodology and tools. Full Investigation Focus on innovation instead of commodities.

The New SAP Model Company | Evolution and Features Interoperability Concept Guided Scoping for a more flexible offering Shorter lifecycles Extend U.S. baseline with others for better localization Platform concept combining Industry- and Line-of-business content Local Ambassadors for demo and enablement Partner Framework for more diverse portfolio and flexible engagement SAP Value Assurance Available for distinct Cloud Solutions SAP Model Company 25+ SAP Model Company services Enhanced industry coverage Partner collaboration model SAP Value Assurance Enhanced integration into the road maps Enhanced integration into engagement sizing SAP Value Assurance for BW/4HANA SAP Model Company 20 offerings for industry and LoB Preconfigured, ready-to-run Leading end-to-end practices On premise, SAP HANA Enterprise Cloud, AWS, Azure SAP Value Assurance for S/4HANA Methodology per transition scenario Flexible scope tailoring & extensions Powerful accelerators and tools Vendor exclusive skills and guidance What is meant by “Model Company” A model company is a ready to use pre-configured software solution that is tailored for an industry or line of business. It comes with proven best practices and encapsulates the experience we gained out of successfully delivered implementation projects. SAP Model Company service, is a fixed-price, fixed-scope offering that includes engineered services include ready- to-use content and service components with a clearly defined scope, delivery model, timeline, and effort. Increasing Time to value and reducing risk, minimising scope. Why is SAP doing model companies? With a model company, we want to support the different transformation process of our customers. Our customers expect us to be the trusted advisors and hence come to the table with solutions, not empty handed as such. History Just to summarise the history, we started with value assurance, for safeguarding, then introduced model company in 2017. Now we are taking MC to Market and proactively working in collaboration of partners to roll the solutions out. Model Company services can now be combined from scratch and ordered and assembled on a process-level. This was possible before only with a classical project approach. The NEW SAP Model Company Starting with 2019 the SAP Model Company services can be combined and are interoperable. What needed a traditional project approach, fit-gap analysis and workshops is not already assembled to order before project start. SAP teams up with a list of selected, qualified partners for content and implementations. No longer are you bound to SAP as an implementation partner. 2019 2016 2017 2018

NEW Portfolio and Development Strategy Roll-out with 1809 The New SAP Model Company | Interoperability Vision and Concept Way forward for easier combination and extended use-cases Until 2018: SAP Model Companies are build as one ready to run appliance, including all applications and pre-configuration* build on top of standard best practices and one localization (US)* Plus: Rapid and “low touch” delivery Minus: Combination of multiple model company services require project specific effort Side by side approach consumes higher system resources Activation of multiple localizations requires project specific effort *: Exception: Enterprise Foundation is assembled to order based on required localizations (Country Version) and scenarios; MC’s for cloud are delivered via tenant copy NEW Portfolio and Development Strategy Roll-out with 1809 Consolidate and develop Model Company content along a consolidated, pre-integrated and modular platform strategy Establish a common Model Company foundation based on Best Practices content as a standard baseline (Includes country versions as delivered by BP) Offer a standardized and centralized assemble to order approach, combining industry and LoB content In parallel offer out-of-the box reference systems (use case: reference / sand box system) SAP is reorganizing the portfolio of SAP Model Company services to give customers a tailored offering that combines capabilities for their industry and line of business on one platform. Planned to be fully operational in early 2019, guided scoping with an assemble-to-order approach will be used to match and mix services to deliver a solution that fits the customer requirements to a much higher degree. We are targeting to host all services in the SAP Cloud to ease the co-building of content and leading practices with SAP partners. Combining several SAP Model Company services is currently possible with a project approach.

SAP Model Company Qualified Partner Program 2 qualification levels and knowledge foundation – open to selected partners Solution level Committed to use SAP Model Company as foundation for solutions Committed to innovate on top of SAP Model Company GTM strategy for SAP Model Company and SAP Value Assurance Access to SAP Model Company “development” environment Qualification Levels GTM strategy for SAP Model Company and SAP Value Assurance Access to education and enablement on SAP Model Company and SAP Value Assurance Access to SAP Model Company content Content level We are building a qualification and certification partner program. Similar to the RDS program, we will aim to identify partners in 3 different buckets. Those without a model company solution but have an awareness, those with a project management solutions and are happy to have SAP model company to extend their own solutions. They have no interest in developing model company solutions. Those with existing best practice solutions, where we look to collaborate proactively with these partners, and co develop model company offerings for LOB or Industry solutions. Access to mode company development would be an option here. Please note this is work in progress so far. Access to “SAP Model Company Partner Enablement” site on SAP Jam Knowledge foundation

SAP Model Company and SAP Value Assurance a foundation for innovation SAP Model Company Implementation Project with the Intention to go-live Integration into existing customer landscape Different deployment options (SAP HANA Enterprise Cloud / on-premise / etc.) Project feedback to continuously improve SAP Model Company SAP Model Company Prototype and Design Dedicated SAP Model Company proof-of-concept / sandbox landscape Different deployment options (SAP Cloud / Amazon Web Services / on premise) Landscape can be customized SAP Model Company Discovery Introduction of SAP Model Company solution Guided tours and meet-the-expert sessions Read-only / generic demo SAP-managed platform Fast and easy access (e.g. less then 24 hours) Innovate 4 Accelerate Functional Realization 3 3 B Involvement of SAP Accelerate Technical Implementation 2 A Plan and Safeguard (Option: Plan and Prototype) 1 Engagement Scope

SAP Model Company Services Release Plan, Edition 2018-07 Available SAP Model Company Services Planned1,3 Industry SAP Model Company for … Airline Back Offices Automotive Suppliers Chemicals2 Core Retail Fashion and Vertical Business Insurance Integrated Digital Banking Life Sciences Mining Production Execution Oil & Gas Omnichannel Retail2 Trade Management for Consumer Products Utilities Cross Industry Enterprise Foundation2 Line of Business Central Finance Connected Manufacturing Finance Human Resources Logistics Execution2 R&D / Engineering and Sustainability2 SAP Extended Warehouse Management for Industries2 SAP Hybris Marketing Cloud Subscription Billing Supply Chain Planning2 Industry Agribusiness Consumer Products (former Food and Beverage) Industrial Machinery & Components Mill Products Line of Business Heavy Equipment Management Solution Businesses See internal version for change log. 1 This is the current state of planning and may be changed by SAP at any time. 2 Model Company service for previous application versions available on request. 3 Available on request

The New SAP Model Company Baseline in the SAP product portfolio end-to-end Evolution within the New SAP Model Company Interoperability enables combination of SAP Model Company offerings More than U.S. Best Practice Baseline for better market fit Shorter lifecycles for faster SAP S/4HANA adoption The benefits of the New SAP Model Company Speed up the transformation to the intelligent enterprise Scaling through partner framework Faster realization of business value Why the New SAP Model Company is better than before Tailored offering, combining Industry and LoB content Built at customer request to really fit the need Discovery Service is equal to the final SAP Model Company service Deployment Option Amazon Web Service enables deployment to private cloud at a fingertip

“We help our business areas to make IT projects faster, smarter, and more precise. That’s how we thrive instead of just survive. We need a unified method and culture of project and portfolio management to win. The right IT system is a huge success factor.” Martin Baldinger, IT Product Manager PPM, Festo AG & Co. KG >80 years Of supporting innovation in manufacturing 61 Countries of operation with more than 250 branch offices ~33,000 Products in several hundred thousand variants Leader In Industry 4.0 technology A global leader in control and drive technology for factory and process automation, Festo is dedicated to helping manufacturers win with innovative automation. In order to support its own innovation and future growth, the company deployed the SAP® Portfolio and Project Management application for IT. The implementation was fast, with minimal customization required, thanks to the SAP Model Company service for R&D/Engineering and Sustainability. Now, Festo has the unified IT PPM it needs to support world-class management of its impressive IT portfolio.

Thank you. http://www.sap.com/modelcompany The New SAP Model Company Thank you. Contact information: F name L name Title Address Phone number http://www.sap.com/modelcompany