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SAP S/4HANA Value Starter EngagementResult Document – Example CustomerQ1, 2021PUBLIC

DisclaimerThis presentation outlines our general product direction and should not be relied on inmaking a purchase decision. This presentation is not subject to your license agreementor any other agreement with SAP. SAP has no obligation to pursue any course ofbusiness outlined in this presentation or to develop or release any functionalitymentioned in this presentation. This presentation and SAP's strategy and possible futuredevelopments are subject to change and may be changed by SAP at any time for anyreason without notice. This document is provided without a warranty of any kind, eitherexpress or implied, including but not limited to, the implied warranties of merchantability,fitness for a particular purpose, or non-infringement. SAP assumes no responsibility forerrors or omissions in this document, except if such damages were caused by SAPintentionally or grossly negligent. 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC2

Intro to this report

SAP S/4HANA Value StarterWhat is this document?This document is asummary of yourcustomer specific ValueStarter results 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICThe output in thisdocument is basedon the discussionpoints during theinteractive sessionsDetails anddocumentation canbe found in yourcustomer specificSharePoint4

What happened during the SAPS/4HANA Value Starter EngagementPre-populated outside-inValue AssessmentPre-populated customerspecific Product MapSAP S/4HANASimulationSAP S/4HANA Value Starter1st half dayPlan theChangeSAP Business ScenarioRecommendationsCustomer-specificPoint of View Document2nd half day3rd half daySession 1: WHY?Session 2: WHY?Session 4: WHAT?Experience the valueof SAP S/4HANA withSAP S/4HANA SimulationDiscussing customerspecific Point of ViewDocument created by SAPSketch the future based ona pre-populated customerspecific product mappowered by:SAP Transformation NavigatorSession 5: WHY?Session 3: WHY?Identify SAP S/4HANAinnovation & improvementpotential based onSAP Business ScenarioRecommendationsIdentify incremental financialbenefit through pre-populatedoutside-in value assessmentpowered by:SAP Value Lifecycle ManagerSession 6: HOW?Plan the Changepowered by:SAP S/4HANA Simulationby Baton Simulations 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICpowered by:SAP Business Scenario Recommendations5

Management Summary

Management Summary – Define your StrategySAP s Outside-In view01Continue to grow company’s mainbusiness and in emerging markets02Focus on Process Excellence03Ensure to meet sustainability commitmentsCritical AreasSG&A expense8,4% of revenue(top: 5,4% - last 15,0%)Operating Margin0,6% of revenue(top: 6,8% - last: 0,6%)Focus Value Drivers04Expand internationally05React on trends andnew mandatory regulationsLOB Finance /Value Driver ReduceFinance CostLOB Manufacturing /Value Driver Reduce TotalManufacturing Cost 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC7

Management Summary – Incremental BenefitsLoB - Manufacturing / Value Driver Reduce Total Manufacturing CostLoB - Finance / Value Driver Reduce Finance CostIncremental Capabilities for selected LoBIncremental Capabilities for selected LoB enhancing the functional scope on 11 currently usedcapabilities providing 13 additional new capabilities to be considered forfuture use (e.g. Financial Reporting, Cash Management,Collections Management) enhancing the functional scope on 13 currently usedcapabilities providing 5 additional new capabilities to be considered forfuture use (e.g. Manufacturing Analytics, RepetitiveManufacturing)Incremental Capabilities for selected value driverIncremental Capabilities for selected value driver 8 related SAP S/4HANA capabilities supporting the value driver(e.g. A/R with Automated Line Item Matching, Cash & LiquidityManagement, Entity Close) The improvement coming mainly trough automatization ofrepetitive tasks or improved productivity through time savings forgeneral tasks 3 related SAP S/4HANA capabilities supporting the value driver(External Processing, Production Execution, Subcontracting) The improvement coming mainly by streamlining productionprocesses or better management of outsourced tasksPotential Cumulative Value for selected LoBPotential Cumulative Value for selected LoB xxx.xxx of recurring benefits every year xxx.xxx of one-time benefit 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC xxx.xxx of recurring benefits every year xxx.xxx of one-time benefit8

Management Summary – Plan the change and move forwardEvaluation of transition scenario Example Customer is currently not decided about their transformation strategy, but is showing a slighttendency for conversion type transitionNext steps together with SAP Discuss the cloud opportunities using RISE with SAPFamiliarize with the changes of existing capabilities via Feature Scope DescriptionCreate your own STN Product Map based on your usage dataPrepare for SAP S/4HANA with the Readiness CheckReview SAP Fiori Scenarios presented in the Fiori Apps Library for ManufacturingReview recommended additional capabilities and decide further usage WM EWMCash and Liquidity ManagementExplore SAP S/4HANA via Trial version 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC9

Business starting pointStrategic prioritiesIdentify ImprovementsSketch the FutureBuild the CasePlan the change

Define your priorities for the Intelligent EnterpriseYour selected focus Lines of BusinessLines of BusinessSelected focusLines of BusinessAsset uringSourcing and ProcurementSupply chain 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC11

Define your priorities for the Intelligent EnterpriseBusiness starting point0Lines of BusinessNeed fordifferentiation5Happiness with theexisting solution10Radicality of futurechangeFinance170Manufacturing966 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC12

Define your priorities for the Intelligent EnterpriseIT strategy0Lines of BusinessCustomization5Innovation10Cloud preferenceFinance179Manufacturing966 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC13

Define your priorities for the Intelligent EnterpriseBeneficial aspects0Embedded realtime insight andanalytics1 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICIntuitive role-basedUser Experience6510Best Practice processes,reduced customizationsand native integration toSAP solutions914

Business starting pointStrategic prioritiesIdentify ImprovementsSketch the FutureBuild the CasePlan the change

Strategic Priorities for Example CustomerExample Customer’s STRATEGY IS FOCUSED ON continuing to growbusiness continuing to focus on Process ExcellenceUse of the most modern IT & equipmentStandardized processes ensure to meetsustainability commitments(reduction of 30% greenhouse gasemissions by 2025) reacting on trends andnew mandatory regulations(European regulation on chemicalbuilding products ECBP) 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICWhile doing so, ExampleCustomer needs to focuson accelerated revenue growth( 5% increase in main business,and 20% in emerging markets) cost control & marginimprovement (Decrease costsfor raw materials and logisticswith improved Sourcing) improve operational efficiency expanding internationally intomarkets in Africa and South America(new offices in Nigeria and Colombia)Sources: Company Website, Annual reports17

Benchmarking indicates significant Value PotentialKEY PERFORMANCEINDICATORSBOTTOM QUARTILERevenue growth (in %)Peer company 1Operating margin (in %)Example customerCost of goods/servicessold (% revenue)Peer company 4Example CustomerTOP QUARTILE5.8Peer company 2Impact Areas for ExampleCustomer0.66.8Peer company 3Accelerate revenue growth84.167.1Example customer-9.9-9.7Cost control & margin improvement8.4SG&A expense (% ofrevenue)Peer company 215.0Days in inventoryPeer company 468.351.65.4Peer company 348.1Peer company 1Manage credit & receivablesFinancial numbers of Example customer are based on Group/Parent level informationDirectional overview based on Peer set: Peer company 1, Peer company 2, Peer company 3, Peer company 4Source: S&P Global Market Intelligence. Data is normalized by S&P for comparative purposes and might not exactly match the financial filings of the companies. 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC21

Your selected Value DriversFinanceAcceleraterevenue growthReduce G/L Effort andFinancial Closing Time:by enabling automated, highlyefficient closing taskssupported by single source oftruthSourcing & ProcurementReduce revenue loss due tostock-outs: by searchinginventory using rich, descriptiveitem descriptions, multipleimages, videos, and stocklevels by locationSalesSupply ChainImprove customersatisfaction: by generatingclear, easy-to-understandinvoices for all services on asingle billManufacturingAsset ManagementReduce manufacturing cycletime by seamlessly integratingquality monitoring and trackingin the manufacturing cycleReduce unplanneddowntimes or outages:Leverage preventive orcondition based maintenancestrategies to keep assets in ahigh performance statusReduce total manufacturingcost: by embedding qualityengineering in the productdesign processReduce fixed asset serviceand maintenance costs:Enable streamlined work orderplanning and execution, whileincluding effective safetymeasuresIncrease revenue from crosssell/up-sell: by recommendingcontextual offers that are morelikely to be accepted bycustomersCost control &marginimprovementReduce finance cost byproviding a holistic view of thedrivers of cost and the causesof underperformanceReduce inventory carryingcost: by optimizing inventoryusing prediction aboutpurchase order item deliverydateReduce service and supportcost: by automaticallyrecording costs incurred as aresult of providing services,which are then rolled up toprofitability analysisReduce Sales Cost: bypromoting trusted customerand partner relationshipsManage credit &receivablesReduce days salesoutstanding: by taking astrategy-based approach toprioritizing customers forcollections activities 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICImprove days payableoutstanding: by enablingeffective liquidity planning byupdating cash managementrecords with invoice dataReduce accounts receivablesmanagement cost: byconsolidating invoices andbilling items from multiple linesof billingImprove demand forecastaccuracy: by leveragingsophisticated forecastingalgorithms that take intoaccount seasonality, trend, andall known demand-influencingfactorsImprove supply chain FTEproductivity: by establishingeffective collaboration withinternal and external partnersReduce days in inventory: byanalyzing inventory coverageand ensuring inventory isaligned with demand throughtotal visibility22

Business starting pointStrategic prioritiesIdentify ImprovementsSketch the FutureBuild the CasePlan the change