RISE with SAP for Automotive - L1 Presentation.pptx

SAP for Automotive industry

1. January 2023 RISE with SAP for Automotive Accelerating Digitalization

2. Global megatrends and disruptions are reshaping the automotive industry Accelerating on the road to a new world of mobility Disrupt the industry with new mobility capabilities Smart cities Autonomous cars Run a profitable traditional automotive business Global megatrends Electrification Data “emissions” Striking the balance Delivering innovations for mobility – profitably, and at scale COVID crisis

3. Automotive companies pursue 5 strategic priorities Core end-to-end processes Lead to cash Design to operate Strategic view Enterprise transformation Growth and market share Shareholders and market capitalization Sustainability and strategic longevity CIO CDO CTO CEO Customer centricity Mobility services Connected cars Digital supply chain and smart manufacturing Engaging the changing workforce New-product introduction Product lifecycle cost Head of R&D Value chain view R&D Manufacturing and supply networks Sales and marketing Aftermarket service Mobility and transformation On-time delivery Customer journey and experience Customer satisfaction Head of manufacturing Head of sales and marketing Total manufacturing cost On-schedule delivery Overall equip. effectiveness Total logistics cost Head of aftermarket Revenue leakage Service delivery cost Cost of warranty Head of mobility New business models Customer experience and engagement Growth and scale Source to pay Hire to retire

4. Best practices SAP point of view: Intelligent automotive enterprises will lead the way Next practices Core End to End Processes Lead to Cash Design to Operate Source to Pay Hire to Retire The Intelligent Enterprise Real-world awareness Environmental awareness Intelligent decision-making Flexible value chains Strategic view Enterprise transformation Customer centricity Mobility services Connected cars Digital supply chain and smart manufacturing Engaging the changing workforce Growth and m arket share Shareholders and market capitalization Sustainability and strategic longevity CIO CDO CTO CEO Head of R&D Value chain view R&D Manufacturing and supply networks Sales and marketing Aftermarket service Mobility and transformation Head of manufacturing Head of sales and marketing Head of aftermarket Head of mobility New-product introduction Product lifecycle cost On-time delivery Customer journey and experience Customer satisfaction Total manufacturing cost On-schedule delivery Overall equip. effectiveness Total logistics cost Revenue leakage Service delivery cost Cost of warranty New business models Customer experience and engagement Growth and scale Vertical edge

5. Example: Digital supply chain and smart manufacturing Reach a new level of productivity and enable individualization at scale by applying Industry 4.0 principles to enable modular manufacturing and resilient supply chain processes BEST PRACTICE: Highly optimized line manufacturing (make to order and make to stock) and supply chain NEXT PRACTICE: Highly flexible modular manufacturing and a networked supply chain Highly optimized, in-line manufacturing (make to order and make to stock) with a just in time, synchronized supply chain Highly flexible modular manufacturing and a networked supply chain – applying Industry 4.0 principles of automation and self-optimized, adaptive manufacturing Increased manufacturing flexibility Flexible automation in fabrication and assembly operations Improved through-put and mitigation of bottlenecks Modular work cells – nonlinear flow Dedicated line – linear flow

6. Optimize and transform : SAP’s Intelligent Enterprise architecture An agile and flexible platform for innovating quickly in the areas where differentiation drives competitive advantage. Partner apps Transform with Next Practices SAP apps Transform SUSTAINABILITY MANAGEMENT EXPERIENCE MANAGEMENT INTELLIGENT SUITE INDUSTRY CLOUD SAP DATA CENTER OR HYPERSCALER BUSINESS TECHNOLOGY PLATFORM BUSINESS PROCESS INTELLIGENCE BUSINESS NETWORK ACROSS ALL FUNCTIONS: Design to Operate | Lead to Cash A stable and reliable business foundation to run end-to-end processes as effectively and efficiently as possible. Optimize with Best Practices SAP Intelligent Suite Applications

7. Creating the value case for change is often challenging Transformations require high upfront costs Skilled experts are hard to secure Transformation path is not clear Too many hands to shake & parties to hold accountable Customer acting as the orchestrator, putting solution stack layers together Multiple and varying SLAs for application stack components Long time-to-value Diminishing support over time to help realize anticipated value However, our customers are faced with multifaceted challenges that are prohibiting their ability to realize the full potential value the Intelligent Enterprise unlocks

8. Driving business innovation together RISE with SAP is designed to support your business needs – for your industry, in your geography, for your regulatory requirements – with SAP responsible for the holistic service-level agreement, cloud operations, and technical support. It includes: RISE with SAP is a comprehensive solution with: Cloud ERP for every business need Industry next practices and extensibility Analytics and business process intelligence Outcome-driven services from SAP and partners Every enterprise needs to develop new business models to avoid being disrupted, gain efficiencies to fund innovation, and transform mission-critical systems without business risk. RISE with SAP is the solution. Cloud ERP SAP S/4HANA Cloud Business process intelligence Business process intelligence starter pack Business platform and analytics SAP Business Technology Platform (CPEA credits) Business networks SAP Business Network Starter Pack Outcome-driven services and tools From partners RISE with SAP is built to fit your needs

9. Expand business innovation in the automotive industry On top of the RISE with SAP offering, you can always extend business innovation with industry-specific solutions as new business opportunities and requirements appear. + Cloud solutions for automotive companies from SAP and partners Rise to every new business opportunity + Mitigate Risk, Reduce IT Cost, and Accelerate Time to Value with Cloud Delivery Capabilities Gain capabilities that maximize transformation readiness, simplify consumption through “as-a-service experience,” help ensure operational resilience, and reduce overall TCO – from SAP and partners B Drive More Business Value Leverage industry best and next practices that create new revenue streams and maximize existing ones, improve assets efficiency , enhance productivity, and allow for running sustainably A Cloud ERP SAP S/4HANA Cloud Business process intelligence Business process intelligence starter pack Business platform and analytics SAP Business Technology Platform (CPEA credits) Business networks SAP Business Network Starter Pack Outcome-driven services and tools From partners

10. delivers differentiation with industry best practices A B R&D Manufacturing and supply networks Sales and marketing Aftermarket service Mobility and transformation SAP S/4HANA, SAP S/4HANA Cloud Advanced variant configuration; i ntegrated product development Product compliance, integrated product development, portfolio management, project management Advanced variant configuration Advanced available to promise; inventory analytics and control Manufacturing engineering Advanced variant configuration; i nventory analytics and control Extended service parts planning; w arranty and complaint management Embedded e xtended warehouse management Integrated, end-to-end HR processes driven by SAP S/4HANA, SAP S/4HANA Cloud HR capabilities (e.g. workforce planning & analytics, payroll, travel management etc.) along with integration to Successfactors Business solution portfolio; sales quotation management Service contract management (field maintenance) Demand-driven replenishment Required business capabilities Advanced transportation management ( fleet management) Customer centricity Mobility services Connected cars Digital supply chain and smart manufacturing Engaging the changing workforce Model mix planning, JIT and JIS, Kanban; c onstraint -based production planning; extended production operations Vehicle management SAP Business Networks Subscription contracts , solution billing

11. SAP Digital manufacturing cloud SAP Variant configuration and pricing SAP Predictive asset insights SAP Digital vehicle hub SAP Enterprise product development SAP Returnable packaging management Intelligent assistant for Automotive by Capgemini Service ticket intelligence, service ticketing SAP E-Mobility SAP Product lifecycle costing SAP Supplier problem solving Vehicle sales and service (VSS) by Proaxia SAP Asset strategy and performance management SAP Industry process framework SAP Digital vehicle hub SAP Complaint handling Digital sales workplace by OneDealer MobileFirst for iOS parts expert by IBM SAP Digital vehicle operations Cloud CAD integration for PDM by Cideon Virtual assistant for manufacturing by Arkite Optimized dynamic pricing by Price f(x) Visual Operations Intelligence by Cogniac Telematics and fleet mgmt. for SAP solutions by Geotab The Intelligent Suite – SAP S/4HANA Cloud Business Technology Platform Industry cloud solutions deliver differentiation with industry next practices and innovations at the vertical edge A B Industry Cloud Solutions Customer collaboration and co-innovation Data platforms for providing digital services Digital channels for vehicle and driver feedback 3D visualization of engineering and manufacturing data Digital twin Real-time visibility of orders and deli veries Product use influences production planning Vehicle software installed and managed Responsive material requirements planning Scenarios simulated and recommendations in real time Individualized sales and marketing Subscription-based services and billing Contextualized customer engagement S ales and supply chain planning alignment Unified view of customer engagement across channels Predictive maintenance and replacement Digital value-added services V ehicle specific services portfolio 3D printed service parts AI-supported service knowledge base Customer feedback driving mobility offerings Remote monitoring of condition and performance Vehicle data as a basis for value-added services Vehicle and parts lifecycle visibility 3D and geospatial visualization Required business capabilities R&D Manufacturing and supply networks Sales and marketing Aftermarket service Mobility and transformation Customer centricity Mobility services Connected cars Digital supply chain and smart manufacturing Engaging the changing workforce

12. 15-40% Improved Customer Satisfaction* 1-15% Reduced Inventory carrying costs* 1-5% Reduced Logistics cost* Requirements Processing Asset Intelligent Network Product Lifecycle Management Purchase Contract Management Demand-Driven Replenishment Capacity Planning Production Scheduling 1 Design Engineer Design Products at Costs 2 3 Materials Planner Balance Supply and Demand 4 Production Planner Manage Production Floor 6 7 8 Purchase Order Collaboration Inventory Analytics and Control Shopfloor Worker, Quality Manager Execute Production Warehouse Clerk, Shipping Specialist Execute Picking and Delivery Accounts Receivable Process Payments Executive Monitor Company Profitability Invoice Collaboration Cash Application Manufacturing Execution Extended Warehouse Management Transportation Management Production Operations Quality Management 5 *Benefits are based on results from early adopters of SAP S/4HANA, SAP S/4HANA Cloud or conservative outside-in estimates of benefits moving from a traditional ERP system to SAP S/4HANA, SAP S/4HANA Cloud. Sequence the working orders to capacity Materials Planner Automotive suppliers – high value components for the next generation Profitability Analysis Sales representative Bid for RFQs 1 Example: how best practices and next practices deliver differentiating value Differentiating Capabilities End to End Supply Chain Visibility Native Robotic Process Automation Real time Shop Floor Connection Digitally Connect to Physical Assets 9 Capability enabled by SAP Industry Cloud  SAP S/4HANA, SAP S/4HANA Cloud Additional SAP Solutions Demo

13. Note: Benefits are conservative outside-in estimates of the benefits of moving from a traditional ERP system to enhanced SAP S/4HANA, SAP S/4HANA Cloud with line-of-business and cloud capabilities. As each enterprise is at a different level of maturity, our recommendation is that you work with SAP to determine the value case for your enterprise enables differentiated business outcomes that maximize shareholder value through SAP’s industry best and next practices A B Increased portfolio of products/services, predictable and new revenue streams Reduced costs, optimized R&D spend, reduced inventory levels, high cash conversion cycle efficiency Optimized environment impact, more resilient and circular value chain, increased uptime and asset utilization, reduced waste, increased compliance 2-15% Reduction in manufacturing cycle time 1-30% Reduction in revenue loss due to stock-outs 10-20% Increase in service revenue from new business models 1-8% Reduction in time to market for new products 1-20% Reduction in customer churn 20-40% Increase in service contract renewals Reduction in revenue loss due to fulfillment issues 0.1-0.5% Reduction in total manufacturing cost 0.5-3% Reduction in asset maintenance cost 2-10% Reduction in days sales outstanding 2-15% Reduction in days in inventory 1-5% Reduction in un-planned downtime or outages 1-10% Reduction in inventory carrying cost 0.5-5% Optimization of R&D expense 1-5% Reduction in total logistics cost 10-25% Improvement in supplier/partner compliance 3-10% Reduction in energy usage 3-10% Reduction in carbon footprint 5-30% Reduction in lost time accident frequency 5-30% Reduction in EH&S penalties and fines 10-20% Reduction in product compliance cost 5-10% Improvement in user compliance 5-30% Improvement in environmental safety and compliance 15-40% Improvement in customer satisfaction 5-30% Improvement in on-time delivery performance 3-35% Improvement in sales forecast accuracy The Top Line The Bottom Line The Green Line Strategic & Transformational Improved customer satisfaction, reduced TCO, improved agility, reduced business and technology risk, improved decision making, increased safety

14. * Not exclusive to cloud Note: See Appendix for details Achieve process excellence* Leverage transformation tools and services* Leverage SAP reference architecture Improve infrastructure resilience Achieve application-level security Leverage periodic updates Access simpler support model Simplify contract and commercials Gain from future-fit, flexible pricing Achieve hyperscaler economics Predictable, lower TCO Operational resilience “As-a-service” experience Transformation readiness Integrate and extend digital core to accelerate innovation Automate technical operations offers cloud delivery capabilities that enable the journey to the Intelligent Enterprise – mitigating risk, reducing cost, and accelerating time to value A B

15. Porsche AG “I spoke with a managing director in Madrid. When he has a meeting with his boss, he had to prepare for three days in advance to download all the data, aggregate it, and visualize it. Now, he has all the information he needs in real time in a dashboard. ” Markus Hartmann, Project Manager for Customer Relations, Porsche AG What are others accomplishing? Impact Areas Key Outcomes Realized Increased portfolio of products/services, predictable and new revenue streams Reduced costs, optimized R&D spend, reduced inventory levels, high cash conversion cycle efficiency Optimized environment impact, more resilient and circular value chain, increased uptime and asset utilization, reduced waste, increased compliance The Top Line The Bottom Line The Green Line Strategic Improved customer satisfaction, reduced TCO, improved agility, reduced business and technology risk, improved decision making, increased safety showcases how our customers are ‘realizing’ the value Faurecia SA “ At each stage of our Industry 4.0 journey, SAP solutions have enabled us to deliver business value that is clearly recognized across the organization .” Eric Godard, Group Deputy CIO, Faurecia S.A Volkswagen AG “ Electric mobility has to be affordable . With SAP S/4HANA, we have created a new technology platform that helps us to set new standards at Volkswagen.” Ronald Goellnitz, Head of Accounting, Volkswagen Sachsen GmbH Toyota Canada Inc. “With SAP, we're truly in the driver's seat and can make changes to our incentive compensation programs at any time, in response to an evolving business landscape.” Christiano Santiago, Manager of Business Applications, Toyota Canada Inc. ZF Friedrichshafen AG “SAP applications help us prepare for the future with flexibility. They provide the insights we need to make the right decisions about demand in the moment .” Stefan König, Head of Central Inventory Management, ZF Aftermarket Grupo Segura “SAP S/4HANA Cloud and SAP are the best partners for our transformation and digitalization journey .” Alberto España, Chief Digital Officer, Grupo Segura

16. Comercializadora de Motocicletas de Calidad ( Italika ) Toluca, Mexico www.italika.mx (Spanish) Industry Automotive Industry Employees Revenue MXN ~15M (USD ~$635,400) 2019 Products and Services Motorcycle manufacturing, distribution, sales and services Featured Solutions SAP S/4HANA SAP Manufacturing Execution SAP Manufacturing Integration and Intelligence Enhanced Productivity – with greater visibility, transparency and automation of shop floor operations 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC ǀ Studio SAP | 74861enUS (21/03) Integrating core business systems with intelligent technologies to transform manufacturing Using SAP S/4HANA and digital manufacturing solutions, Italika gained: Increased transparency on the shop floor, with detailed insights from a single integrated system Greater visibility into its manufacturing processes, enabling it to take appropriate action and resolve issues quickly using comprehensive information generated from root-cause analysis reporting The ability to track each stage and user along the entire assembly process, as well as automate functions for backflushing and goods issue Statistical control of the production process, with systematized production planning, quality inspections, and adjustment processes – all available on mobile devices Big Data analytics during the production process, helping it make more informed decisions Comprehensive reporting functionality throughout the assembly process, with the ability to generate multiple reports on defects, consumption, and operational matters Contingency planning capabilities to keep production running in the event of a remote power failure “Thanks to digital manufacturing applications from SAP, Italika embraced Industry 4.0 technologies optimizing manufacturing operations with real-time information – enhancing product traceability and production output .” Mario Fraga, CIO, Comercializadora de Motocicletas de Calidad ( Italika )

17. Vision-to-value engagement model Articulate business strategy and required business outcomes to underline digital ambition Share Intelligent Enterprise and cloud vision, and how it enables the customer transformation Set engagement direction and expected results Align on scope, resources and timeline Conduct discovery workshops to uncover business process improvement opportunities Explore the art of the possible with technology innovations to achieve desired business outcomes Baseline current technology landscape - capability and TCO assessment Develop the case for change Agree on target end-state enterprise architecture, and transformation roadmap Define target operating model, technical migration and deployment strategy Validate outcomes, priorities, and case for change with executive sponsors Transition to delivery and customer success team Address enablement, on-boarding, and change management requirements Utilize best practices for deployment and project governance Support customer success, on-going value realization and optimization Align on vision and desired outcomes Build the value case Plan the path forward Deliver business value Align on business and IT strategy and get buy-in across the organization Build the case for change and identify key initiatives with expected outcomes Create transformation roadmap and define deployment plan Deliver quick adoption and time to value, and drive continuous optimization and innovation 1 2 3 4 Initialize the transformation Provide our POV on the case for change in the context of industry and customer needs Provide high-level value cases for change based on industry requirements and customer needs Socialize the Vision-to-Value approach

18. Thank You

19. Appendix 1: SAP S/4HANA, SAP S/4 HANA Cloud Value

20. enables differentiated business outcomes for Automotive Industry: “Value Lever View” 2020 SAP SE or an SAP affiliate company. All rights reserved. *Benefits are based on results from early adopters of SAP S/4HANA, SAP S/4HANA Cloud or are conservative outside-in estimates of the benefits of moving from a traditional ERP system to enhanced SAP S/4HANA, SAP S/4HANA Cloud with line-of-business and cloud capabilities. As each enterprise is at a different level of maturity, our recommendation is that you work with SAP to determine the value proposition for your enterprise. Strategic Priorities and Key Capabilities Be customer centric Engage with A changing workforce Deliver mobility services Implement the digital supply chain and smart manufacturing Design connected cars Extended Warehouse Management Business Solution Portfolio Extended Production Operations Portfolio Management Extended Service Parts Planning Travel Management Workforce Planning & Analytics 0.1-0.5% Reduction in total manufacturing cost 0.5-3% Reduction in asset maintenance cost 2-10% Reduction in days sales outstanding 2-15% Reduction in days in inventory 1-5% Reduction in un-planned downtime or outages 1-10% Reduction in inventory carrying cost 0.5-5% Optimization of R&D expense 1-5% Reduction in total logistics cost 10-25% Improvement in supplier/partner compliance Value Areas Business Outcomes Value Drivers Increased portfolio of products/services, predictable and new revenue streams Reduced costs, optimized R&D spend, reduced inventory levels, high cash conversion cycle efficiency Optimized environment impact, more resilient & circular value chain, increased uptime and asset utilization, reduced waste, increased compliance, Enhanced Brand Image 2-15% Reduction in manufacturing cycle time 1-30% Reduction in revenue loss due to stock-outs 10-20% Increase in service revenue from new business models 1-8% Reduction in time to market for new products 1-20% Reduction in customer churn 20-40% Increase in service contract renewals Reduction in revenue loss due to fulfillment issues 3-10% Reduction in energy usage 3-10% Reduction in carbon footprint 5-30% Reduction in lost time accident frequency 5-30% Reduction in EH&S penalties and fines 10-20% Reduction in product compliance cost 5-10% Improvement in user compliance 5-30% Improvement in environmental safety and compliance 15-40% Improvement in customer satisfaction 5-30% Improvement in on-time delivery performance 3-35% Improvement in sales forecast accuracy Improved customer satisfaction, Improved agility, reduced business & technology risk, improved decision making, increased safety The Top Line The Bottom Line The Green Line Strategic & Transformational Advanced Available to Promise Advanced Available to Promise Just-In-Time Processing Inventory Analytics and Control Inventory Analytics and Control Extended Service Parts Planning Billing and Revenue Innovation Management (incl. Subscription Order Management, Convergent Invoicing) Billing and Revenue Innovation Management Product Marketability and Compliance Production Engineering Logistics Business Network (Freight Collaboration) with Transportation Management Demand-Driven Replenishment Demand-Driven Replenishment Workforce Planning & Analytics Constraint-Based Production Planning Constraint-Based Production Planning Advanced Variant Configuration Advanced Variant Configuration Model Mix Planning and Sequencing Predictive and Live MRP Ariba Network with Purchase Order and Invoice Collaboration Predictive and Live MRP Asset Intelligence Network and Collaboration (Equipment Collaboration) with Maintenance Planning & Execution

21. Primary value drivers improved in Automotive by SAP S/4HANA, SAP S/4HANA Cloud Primary Value Drivers Other Key Value Drivers 1-30% Reduction in revenue loss due to stock-outs 1-20% Reduction of customer churn 20-40% Increase in service contract renewals 10-20% Increase service revenue from new business models 1-8% Reduce time to market for new products 0.1-0.5% Reduction in total manufacturing cost 0.5-3% Reduction in asset maintenance cost 2-10% Reduction in days sales outstanding 2-15% Reduction in days in inventory 1-5% Reduction in un-planned downtime or outages 1-10% Reduction in inventory carrying cost 0.5-5% Optimization of R&D expense 1-5% Reduction in total logistics cost 10-25% Improvement in supplier/partner compliance 5-30% Improvement in environmental safety and compliance 5-30% Reduce EH&S penalties and fines 10-20% Reduce product compliance cost 1-5% Reduction in un-planned downtime or outages 5-10% Improve user compliance 3-35% Increase in sales forecast accuracy 15-40% Improvement in customer satisfaction 5-30% Improvement of on-time delivery performance 5-30% Improvement in environmental safety and compliance Increase service revenue Increase revenue from new products/services Increase revenue from cross-sell/up-sell Increase revenue growth with better product personalization Improve sourcing savings on direct spend Improve supplier/external partner compliance Reduce service and support cost Reduce sales cost Reduce employee manual transaction effort Reduce audit cost Reduce days sales outstanding Improve days payable outstanding Improve overall equipment effectiveness Increase first time resolution rate by field service technicians Increase financial forecast accuracy Reduce days to close annual books ** based on (a) Contribution to the Impact Areas (b) Solution Business Capabilities provided by SAP S/4HANA, SAP S/4HANA Cloud (with a priority on Incremental Capabilities as compared to ECC (c) SAP’s view on the Primary Value Drivers that drive Strategic Priorities of this industry Impact Areas Key Outcomes Realized Increased portfolio of Products/Services, Predictable and new Revenue Streams Reduced Costs, Optimized R&D Spend, Reduced inventory levels, High cash conversion cycle efficiency Optimized Environment Impact, More Resilient & circular value chain, Increased uptime and asset utilization, Reduced Waste, Increased Compliance Improved Customer satisfaction, Reduced TCO , Improved Agility, Reduced Business & Technology Risk, Improved Decision Making, Increased Safety The Top Line The Bottom Line The Green Line Strategic & Transformational

22. Industry context for scenario for automotive suppliers KEY PAIN POINTS KEY PRODUCTS & CUSTOMERS BUSINESS AT A GLANCE Assembly Stations & Warehouse Manufacturing Plant OEMs Transportation Braking Systems Wiring Sensors Infotainment Battery OEMs Service Centers Fewer Parts/ Components | Changing Technology | Reducing Profit Margin Intelligent Technology Lean Operations

23. Example: Challenges with current practices Requirements Processing Asset Intelligent Network Product Lifecycle Management Purchase Contract Management Demand-Driven Replenishment Capacity Planning Production Scheduling 1 Sales representative Design Engineer 2 3 Materials Planner 4 Production Planner 6 7 8 9 Purchase Order Collaboration Inventory Analytics and Control Materials Planner Shopfloor Worker, Quality Manager Warehouse Clerk, Shipping Specialist Accounts Receivable Executive Profitability Analysis Invoice Collaboration Cash Application Manufacturing Execution Extended Warehouse Management Transportation Management Production Operations Quality Management 5 Key Challenges Higher inventory and logistics costs Lack of real-time visibility and insights to take actions Cumbersome time-taking manual processes Loss of opportunity to increase margins & customer satisfaction Cumbersome time taking lengthy RFQ process with delay Delay in creating digital simulation labs from shared data Limited demand analysis against pre-defined contracts Manual track machine capacity & sequence work orders Loss of opportunity to widen margin Labor-intensive receivables matching & invoice collaboration Inability to optimize storage, delivery loads and routes No embedded analytics to monitor KPIs real-time Discrepancy in forecast generation

24. Appendix 2 : Value Framework

25. Offers cloud delivery capabilities that enable the journey to the Intelligent Enterprise - mitigating risk, reducing cost and accelerating time to value * Not exclusive to cloud Achieve Process Excellence* Leverage Transformation Tools & Services* Leverage SAP Reference Architecture Improve Infrastructure Resilience Achieve Application Level Security Leverage Periodic Updates Access Simpler Support Model Simplify Contract & Commercials Gain from Future-Fit, Flexible Pricing Achieve Hyperscaler Economics Predictable, Lower TCO Operational Resilience “As-a-Service” Experience Transformation Readiness Integrate and Extend Digital Core to Accelerate Innovation Automate Technical Operations

26. Improve transformation readiness and accelerate innovation 1 Other LOB bundlers to be introduced across 2021, starting with HXM 2 IDC survey showed 10-15% drop in operating costs 3 SAP customer case studies and experience 4 Improvement range based on SAP’s benchmarking with a model company of $2B in Revenue & 15% margin. Only applies to assets / spend / logistics which flow through the respective SAP systems  Achieve Process Excellence Leverage transformation tools & services Integrate and Extend Digital Core to Accelerate Innovation 1 With BPI, identify process bottlenecks, design to-be processes, simulate and achieve significant business improvements Reduce complexity of customizations and maximize use of standard functionality using SAP tools and services Optimize and extend processes that accelerate cloud innovations with Business Technology Platform and Business Networks within and beyond enterprise boundaries 10 – 15% 2 Improved process efficiency 50 – 80% 3 Less cost to manage customizations Reduce time-to-value for B2B network benefits 10 – 15% 4 Sourcing savings (Ariba Network) Up-to 3% 4 Lower asset maintenance cost (AIN) Up-to 5% 4 Lower logistics cost (LBN) Up-to 15% 4 Lower days In inventory (LBN) Faster time to market for innovations Improved employee engagement with task automation Predictable, Lower TCO Operational Resilience “As-a-Service” Experience Transformation Readiness

27. 1 SAP customer case studies and experience 2 Study by IDC on SAP S/4HANA Cloud, private edition 3 The Value of Upgrading ERP: Maintaining Modern Technology (by Aberdeen Group) Access Simpler Support Model Leverage Periodic Updates One SLA for the full application stack, simpler governance and faster issue resolution SAP managed support packages and patches. One technical upgrade p.a. for private cloud and quarterly for public cloud 20 – 30% 1 Reduced governance costs Up-to 98% 2 Reduced downtime Up-to 3% 3 Operational cost Up-to 5% 3 Administrative cost Up-to 1.9x 3 # of processes with visibility Up-to 7% 3 Complete + On-time shipments Simplify software consumption and realize a better SaaS experience Predictable, Lower TCO Operational Resilience “As-a-Service” Experience Transformation Readiness “As-a-Service” Experience Simplify Contracts & Commercials One commercial offer and contract for RISE with SAP. SAP and services partner work in tandem leveraging each partner’s unique strengths

28. Leverage SAP Reference Architecture Improve Infrastructure Resilience Achieve Application-Level Security Proprietary SAP reference architecture to ensure optimal performance and platform independence across multi-cloud ecosystem Choice of hyperscaler to ensure highly resilient, global, secure and scalable Cloud infrastructure Reduce cybersecurity risk and high overhead costs to address cybersecurity, privacy and ensure business continuity 30 - 60% 1 Reduced infrastructure overprovisioning Up-to 98% 2 Reduced Downtime 2.8% of Revenue 3 Reduced cybersecurity value-at-risk Reduced SAP application delivery time Reduced risk of penalties (e.g. due to GDPR violations) 1 Bain & Co. - Optimize when migrating to the Cloud 2 IDC TCO study on SAP S/4HANA Cloud 3 Accenture – The cost of cybercrime Improve operational resilience running on hyperscale infrastructure Predictable, Lower TCO Operational Resilience “As-a-Service” Experience Transformation Readiness Operational Resilience

29. Gain from Future-Fit, Flexible Pricing Achieve Hyperscale Economics Automate Technical Operations Flexible subscription pricing, better aligned with future requirements based on simpler metrics (e.g. Full Usage Equivalent) Reduce infrastructure costs, while leapfrogging complexity and learning curve of using a public IaaS / PaaS platform Better service availability and cost efficient operations leveraging SAP best practice cloud operations 20% 1 Reduced TCO Reduce IT governance costs Reduce infrastructure costs Reduce IT operational costs Reduce shelf-ware Improve IT user productivity Reduced 3 rd party software & support fees Faster time-to-market for new capabilities & applications 1 Study by IDC on SAP S/4HANA Cloud, private edition Achieve predictable, lower TCO with pricing & infrastructure operations optimization Predictable, Lower TCO Operational Resilience “As-a-Service” Experience Transformation Readiness Predictable, Lower TCO

30. Appendix 3: RISE Framework - Partners

31. Business transformation as a service requires our ecosystem + = Ecosystem value add Business process intelligence (BPI) Custom code analyzer, SAP Readiness Check, SAP Cloud ALM, SAP Learning Hub SAP Business Network Starter Pack SAP Business Technology Platform (SAP BTP) Flexibility to choose infrastructure provider Business advisory services by partners that leverage BPI from SAP SAP Business Network activation services by partners Preconfigured applications and solutions by partners as repeatable accelerators Partner innovations and integrations built on SAP BTP Partner-built industry integrations, accelerators, content, and data Partner-defined industry reference architecture – solutioning beyond SAP Partner app 2 Industry cloud solution from SAP Partner app 1 Industry solution from SAP RISE with SAP for industry Guided journey Simplified engagement Premier value SAP S/4HANA Cloud, public edition SAP S/4HANA Cloud, private edition 31 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ Rapid migration and implementation services by partners Recurring application management services by partners PUBLIC

32. Appendix 4: RISE with SAP for HXM

33. lifts, transforms and shifts, unlocking two sources of differentiating value Cloud solutions for automotive companies from SAP and partners Business process intelligence SAP Business Technology Platform SAP Business Network Starter Pack SAP S/4HANA Cloud, public edition SAP S/4HANA Cloud, private edition Flexibility to choose infrastructure provider Premier Value Simplified Engagement Guided Journey Custom code analyzer, SAP Readiness Check, App Lifecycle management, SAP Learning Hub Mitigating Risk, Reducing IT Cost and Accelerating Time to Value with Cloud Delivery Capabilities Capabilities that maximize transformation readiness, simplifies consumption through “as a service experience”, ensures operational resilience and reduces overall TCO – from SAP and partners B + Enabling Business Value Creation with Differentiating Business Capabilities Industry best and next practices that improve employee engagement and productivity, create new revenue streams and maximize existing ones, improve assets effeciency, enhance productivity and allow for running sustainably – from SAP and partners A Structure for Success Qualtrics EmployeeXM for IT SAP Work Zone for HR SAP SuccessFactors solutions Operationally Transform Reskill to Innovate HXM

34. SAP S/4HANA, SAP S/4HANA Cloud delivers differentiation with industry best practices while ensuring that your people are aligned, engaged and properly skilled A B SAP Business Networks Human Experience Management SAP SuccessFactors R&D Manufacturing and supply networks Sales and marketing Aftermarket service Mobility and transformation Advanced variant configuration; i ntegrated product development Product compliance, integrated product development, portfolio management, project management Advanced variant configuration Advanced available to promise; inventory analytics and control Manufacturing engineering Advanced variant configuration; i nventory analytics and control Extended service parts planning; w arranty and complaint management Embedded e xtended warehouse management Integrated, end-to-end HR processes driven by SAP S/4HANA, SAP S/4HANA Cloud HR capabilities (e.g. workforce planning & analytics, payroll, travel management, etc.) along with integration to Successfactors Business solution portfolio; sales quotation management Service contract management (field maintenance) Demand-driven replenishment Required business capabilities Advanced transportation management ( fleet management) Customer centricity Mobility services Connected cars Digital supply chain and smart manufacturing Engaging the changing workforce Model mix planning, JIT and JIS, Kanban; c onstraint -based production planning; extended production operations Vehicle management Subscription contracts , solution billing

35. SAP HXM 15-40% Improved Customer Satisfaction* 1-15% Reduced Inventory Carrying Costs* 1-5% Reduced Logistics Costs* Requirements Processing Asset Intelligent Network Product Lifecycle Management Purchase Contract Management Demand-Driven Replenishment Capacity Planning Production Scheduling 1 Design Engineer Design Products at Costs 2 3 Materials Planner Balance Supply and Demand 4 Production Planner Manage Production Floor 7 8 Purchase Order Collaboration Inventory Analytics and Control Shopfloor Worker, Quality Manager Execute Production Accounts Receivable Process Payments Executive Monitor Company Profitability Invoice Collaboration Cash Application Manufacturing Execution Extended Warehouse Management Transportation Management Production Operations Quality Management 5 Materials Planner Automotive Suppliers – High Value Components for the Next Generation Profitability Analysis Sales representative Bid for RFQs 1 Differentiating Capabilities End to End Supply Chain Visibility Native Robotic Process Automation Real time Shop Floor Connection Digitally Connect to Physical Assets 9 Capability enabled by SAP Industry Cloud  SAP S/4HANA, SAP S/4HANA Cloud Additional SAP Solutions SAP HXM Solutions Sequence the working orders to capacity Example: How best practices and next practices deliver differentiating value and improved employee experience and productivity with SAP HXM My feedback makes for a great IT solution experience I was selected based on my competency data I use mobile workflows to manage my agile team I access all my tasks on my personal workspace *Benefits are based on results from early adopters of SAP S/4HANA, SAP S/4HANA Cloud or conservative outside-in estimates of benefits moving from a traditional ERP system to SAP S/4HANA, SAP S/4HANA Cloud Access the RISE with SAP for HXM – L1 Presentation I use self services to adapt my holiday plans I keep up to date with mobile learning I flexibly record my dynamic working time I combine financial and workforce data for my analyses My finance data ensures accurate payroll + Aligned, Skilled and Engaged People 6 Warehouse Clerk, Shipping Specialist Execute Picking and Delivery

36. enables differentiated business outcomes that maximize shareholder value through SAP’s industry best and next practices Increased upsell and cross-sell opportunities , new revenue streams, increase in service revenue, improve employee productivity Reduced costs, optimized R&D spend, high cash conversion cycle efficiency, improve IT and HR FTE efficiency, improve payroll efficiency 10%-25% improvement in time to full productivity of new hires 3%-5% improvement in learner effectiveness Up to 60% improvement in faster time to market 3%-5% improvement in Learner Effectiveness 3%-40% reduction in employee manual transaction effort 10%-45% reduction in manual transaction and HR administration effort 3%-20% reduction in manager time on employee administration 10%-25% reduction in HR FTE time on functional and ad-hoc reporting & analysis 2%-13% reduction in employee turnover 1%-10% reduction in employee support cost 10%-40% reduction in cost of training delivery 20%-50% improvement in training capacity and upskill faster 10%-30% reduction in content development and maintenance effort 10%-25% improvement in payroll management function efficiency 50%-70% improvement in time tracking and schedule management function efficiency 25%-50% reduction in paid time-off errors 15%-53% reduction in leave liability balance 30%-71% reduction in manager time on time-keeping and scheduling activities 0.5%-3% reduction in payroll time inflation 5%-20% reduction in controllable overtime expense / payments 0.5%-2% improvement in payroll accuracy Optimized environment impact, more resilient & circular value chain, reduced waste, increased compliance, reduced risk 70%-80% reduction in HXM localization cost Drive sustainability with paperless digital learning 50% reduction in ongoing localization cost Drive sustainability with digital paystubs The Top Line The Bottom Line The Green Line Strategic & Transformational 12%-58% improvement in employee engagement Average 15% increase in IT project execution 10%-50% increase in employee experience management program efficiency 5%-20% increase in employee technology effectiveness Reduce IT costs related to building and maintaining integrations Improved customer satisfaction, improved employee experience, improved agility, reduced business & technology risk, improved decision making Note: Benefits are conservative outside-in estimates of the benefits of moving from a traditional ERP system to enhanced SAP S/4HANA, SAP S/4HANA Cloud with line-of-business and cloud capabilities. As each enterprise is at a different level of maturity, our recommendation is that you work with SAP to determine the value case for your enterprise A B