Product as a service, powered by Microsoft Dynamics 365 (ISV) 11/15/2018 4:16 PM Product as a service, powered by Microsoft Dynamics 365 (ISV) Helge Roth COO, Sycor Americas © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Business model evolution 11/15/2018 4:16 PM Business model evolution Traditional Sale Product as a Service Customer Ownership Upkeep Inflexible Pay per use No upkeep Flexible Recurring revenue Value = Product + Services Ongoing customer relationship Customer One time revenue Value = Product Customer relationship ends Supplier © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Shapes of product as a service 11/15/2018 4:16 PM Shapes of product as a service Pay per use Renting/Sharing Leasing Pooling © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Customer evidence: Doka Microsoft 2016 11/15/2018 4:16 PM Customer evidence: Doka Manufacturer of formwork construction equipment 6,000 employees / >60 countries Sell, rent, lease products Using Dynamics AX since 2004 ISV solution Sycor.Rental Future plans: Upgrade to Dynamics 365 & IoT integration “Thanks to the high level of scalability and performance offered by the solution, we can also map the continued expansion of our sales network in order to optimize customer support.” – Jürgen Obiegli  © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Customer evidence: Alpha Trains Microsoft 2016 11/15/2018 4:16 PM Customer evidence: Alpha Trains Largest train leasing company in Europe 13 countries New Dynamics 365 customer >800 trains under long & short-term customer contracts Future plans: IoT integration & Cortana Intelligence for predictive maintenance “We were convinced by the powerful rental functions of Sycor.Rental and the trend-setting basis of Microsoft Dynamics 365.” – Ingo Wurzer © 2016 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Product as a service example scenarios 11/15/2018 4:16 PM Product as a service example scenarios Coffee as a service Mobility as a service © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Challenges: Transitioning to product as a service From value in on hand inventory to fixed assets

11/15/2018 4:16 PM Demo Helge Roth © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Challenges: Transitioning to product as a service From value in on hand inventory to fixed assets Contract duration and pricing models

11/15/2018 4:16 PM Demo Helge Roth © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Challenges: Transitioning to product as a service From value in on hand inventory to fixed assets Contract duration and pricing models Location of equipment under contract

11/15/2018 4:16 PM Demo Helge Roth © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Challenges: Transitioning to product as a service From value in on hand inventory to fixed assets Contract duration and pricing models Location of equipment under contract Planning and execution of service & repairs

11/15/2018 4:16 PM Demo Helge Roth © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Challenges: Transitioning to product as a service From value in on hand inventory to fixed assets Contract duration and pricing models Location of equipment under contract Planning and execution of service & repairs Collecting data

11/15/2018 4:16 PM Demo Helge Roth © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Microsoft Dynamics 365 lifecycle management 11/15/2018 4:16 PM Microsoft Dynamics 365 lifecycle management Microsoft Dynamics 365 + = Product as a service Procurement Purchasing Leasing Production Fleet management Contracts Service & maintenance Damages & repairs End of lifecycle Selling Scrapping Overhaul Fixed assets Creation Depreciation Duration Equipment file Costs Recurring revenue Service & maintenance Damages & repairs © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

11/15/2018 4:16 PM © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.