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SAP Digital ManufacturingSupporting the Intelligent EnterpriseJohn HarrisonOctober, 2018PUBLIC#NP# JZBva8IwEIe/SsirjdmZatM/vquN Wqcd3b QiEhhZb V2YJCWJuiF 9 yUOjoP L8/y4I1 dY13B0 haqd7 EI gjZcg3eeha 5N9onz DQPPh5GSYRjh9GT0x5 pH/bgnrs8s2LGtFGyB1bseGZ GqsbST wcKXiup ZWtAK S NKiU XxiXnxK XSaFoF i3j3XgRRWL3it 5ys16ja zqzSdtY gI0pL1 ehGGGa 4FJpS wn7BgN LxSXPRa A3mQs jzHVL6I r8EyJlS XEvhg VVaAsIP 3LAjKJ g4taw2 J8XFAa zTj0zK7 83wuev Mj93W /V80zJ com1U DtMu3V RBtZiuchdtduF xYx9yV JMPjy WQae8iP Ey Ix8 RLsBuTI E3xNPQHE/uDt z8 #N P#

Agenda2 Key industry trends Shaping the industrial / manufacturing landscapeSAP Digital ManufacturingSAP Digital Manufacturing in S/4HANAConvergence of on-premise and cloud Introduction of the SAP Digital Manufacturing Cloud 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC#NP# JZBva8IwEIe/SsirjdmZatM/vquN Wqcd3b QiEhhZb V2YJCWJuiF 9 yUOjoP L8/y4I1 dY13B0 haqd7 EI gjZcg3eeha 5N9onz DQPPh5GSYRjh9GT0x5 pH/bgnrs8s2LGtFGyB1bseGZ GqsbST wcKXiup ZWtAK S NKiU XxiXnxK XSaFoF i3j3XgRRWL3it 5ys16ja zqzSdtY gI0pL1 ehGGGa 4FJpS wn7BgN LxSXPRa A3mQs jzHVL6I r8EyJlS XEvhg VVaAsIP 3LAjKJ g4taw2 J8XFAa zTj0zK7 83wuev Mj93W /V80zJ com1U DtMu3V RBtZiuchdtduF xYx9yV JMPjy WQae8iP Ey Ix8 RLsBuTI E3xNPQHE/uDt z8 #N P#2

2 Key industry trends#NP# JZBva8IwEIe/SsirjdmZatM/vquN Wqcd3b QiEhhZb V2YJCWJuiF 9 yUOjoP L8/y4I1 dY13B0 haqd7 EI gjZcg3eeha 5N9onz DQPPh5GSYRjh9GT0x5 pH/bgnrs8s2LGtFGyB1bseGZ GqsbST wcKXiup ZWtAK S NKiU XxiXnxK XSaFoF i3j3XgRRWL3it 5ys16ja zqzSdtY gI0pL1 ehGGGa 4FJpS wn7BgN LxSXPRa A3mQs jzHVL6I r8EyJlS XEvhg VVaAsIP 3LAjKJ g4taw2 J8XFAa zTj0zK7 83wuev Mj93W /V80zJ com1U DtMu3V RBtZiuchdtduF xYx9yV JMPjy WQae8iP Ey Ix8 RLsBuTI E3xNPQHE/uDt z8 #N P#

Complex Analytics Require a Strong FoundationConceptual Data Model for AnalyticsPreviously UndetectedCorrelations andPatternsRoot Cause AnalysisPattern detectionPrescriptive SuggestionsStandardization ofPredictive ModelsIn standardizing the foundationof data complex generic andindustry specific models areeasy to support and expandKPI StandardizationPre-delivered industry standardKPIs with flexibility toextend/create new KPIsContextualized DataThe accuracy of a model is onlyas good as the data feeding it 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC#NP# JZBva8IwEIe/SsirjdmZatM/vquN Wqcd3b QiEhhZb V2YJCWJuiF 9 yUOjoP L8/y4I1 dY13B0 haqd7 EI gjZcg3eeha 5N9onz DQPPh5GSYRjh9GT0x5 pH/bgnrs8s2LGtFGyB1bseGZ GqsbST wcKXiup ZWtAK S NKiU XxiXnxK XSaFoF i3j3XgRRWL3it 5ys16ja zqzSdtY gI0pL1 ehGGGa 4FJpS wn7BgN LxSXPRa A3mQs jzHVL6I r8EyJlS XEvhg VVaAsIP 3LAjKJ g4taw2 J8XFAa zTj0zK7 83wuev Mj93W /V80zJ com1U DtMu3V RBtZiuchdtduF xYx9yV JMPjy WQae8iP Ey Ix8 RLsBuTI E3xNPQHE/uDt z8 #N P#3210UnstructuredMachine LearningPredictive ModelsStandard & Custom KPIs andMetric CalculationsIndustrial Event, Meter, and Analog s4

A Shifting Landscape: IT/OT Convergence Becomes IoT/OT ConvergenceStep #1 – IT Provisions DeviceKey PointsStep #2 – Model Device in the context ofa process where multiple new and existingsystems are present IoT ServicesHandover Detailsto ApplicationsSAP Digital Mfg. Cloud(S95 & S88)1.1.Device Registration2.Firmware Mgmt.3.Device is now ActiveIoT EdgeGatewayOPC-UAIT Provisioned Devices 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC#NP# JZBva8IwEIe/SsirjdmZatM/vquN Wqcd3b QiEhhZb V2YJCWJuiF 9 yUOjoP L8/y4I1 dY13B0 haqd7 EI gjZcg3eeha 5N9onz DQPPh5GSYRjh9GT0x5 pH/bgnrs8s2LGtFGyB1bseGZ GqsbST wcKXiup ZWtAK S NKiU XxiXnxK XSaFoF i3j3XgRRWL3it 5ys16ja zqzSdtY gI0pL1 ehGGGa 4FJpS wn7BgN LxSXPRa A3mQs jzHVL6I r8EyJlS XEvhg VVaAsIP 3LAjKJ g4taw2 J8XFAa zTj0zK7 83wuev Mj93W /V80zJ com1U DtMu3V RBtZiuchdtduF xYx9yV JMPjy WQae8iP Ey Ix8 RLsBuTI E3xNPQHE/uDt z8 #N P#2.Manage Connectivityand application contextincluding meter, event &streaming dataM2M processes &controlSAP PlantConnectivitySCADAHistorian IT professionals are no longer bringing softwareonly, they have hardware (IoT) now They still require support from local teams Local teams still need IT to support themand their needs at the ‘Fog’ layerIIoT is not new in the industrial/manufacturingindustries, but the processes to manage it inthe context of the business applications is.SAP DigitalMfg. ergence-dead5

A Shifting Landscape: The Inverse HistorianKey PointsML nDetails & Mgmt.IoT Service 4.0 IT Policy, Security& Management{ERP DataAsset HierarchyEvent & Historical DataApplication DataSAP Manufacturing(Event & Streaming)SuiteApplication Management ofSAP Industrial EdgeSAP PlantConnectivity(PCo)SAP Edge Services(Includes DEP) Local management of large data persistence isno longer required Central & local teams provide jointadministration Central & local teams share usage of thesame common data catalogCentralized compute power and extensibilityensure that the infrastructure is managed andflexible to meet the changing business needs Including cloud software updatesSAP Edge GatewaySAP Industrial EdgeIT Provisioned Devices 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC#NP# JZBva8IwEIe/SsirjdmZatM/vquN Wqcd3b QiEhhZb V2YJCWJuiF 9 yUOjoP L8/y4I1 dY13B0 haqd7 EI gjZcg3eeha 5N9onz DQPPh5GSYRjh9GT0x5 pH/bgnrs8s2LGtFGyB1bseGZ GqsbST wcKXiup ZWtAK S NKiU XxiXnxK XSaFoF i3j3XgRRWL3it 5ys16ja zqzSdtY gI0pL1 ehGGGa 4FJpS wn7BgN LxSXPRa A3mQs jzHVL6I r8EyJlS XEvhg VVaAsIP 3LAjKJ g4taw2 J8XFAa zTj0zK7 83wuev Mj93W /V80zJ com1U DtMu3V RBtZiuchdtduF xYx9yV JMPjy WQae8iP Ey Ix8 RLsBuTI E3xNPQHE/uDt z8 #N P#SCADA, DCS verse-historian-historian-16

SAP Digital Manufacturing#NP# JZBva8IwEIe/SsirjdmZatM/vquN Wqcd3b QiEhhZb V2YJCWJuiF 9 yUOjoP L8/y4I1 dY13B0 haqd7 EI gjZcg3eeha 5N9onz DQPPh5GSYRjh9GT0x5 pH/bgnrs8s2LGtFGyB1bseGZ GqsbST wcKXiup ZWtAK S NKiU XxiXnxK XSaFoF i3j3XgRRWL3it 5ys16ja zqzSdtY gI0pL1 ehGGGa 4FJpS wn7BgN LxSXPRa A3mQs jzHVL6I r8EyJlS XEvhg VVaAsIP 3LAjKJ g4taw2 J8XFAa zTj0zK7 83wuev Mj93W /V80zJ com1U DtMu3V RBtZiuchdtduF xYx9yV JMPjy WQae8iP Ey Ix8 RLsBuTI E3xNPQHE/uDt z8 #N P#

SAP Digital ManufacturingDigital Manufacturing wires theDESIGNSOURCEMAKEDELIVERSERVICEworld of machines with businessprocesses Shop Floor to Top Floor (vertical)Machine to Machine (horizontal)End to End IntegrationBusiness PartnersEasy ConnectivityBuild on an open IoT ready platformsupporting Industry 4.0 manufacturing ibutedManufacturingDigital Manufacturing InsightsManufacturing nect Top Floor and Shop nectivityMachineOrchestrationFollowing the OPC UA StandardsEnabling a manufacturing networkConnecting partners along the supply chainWith flexible Deployment Options 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC#NP# JZBva8IwEIe/SsirjdmZatM/vquN Wqcd3b QiEhhZb V2YJCWJuiF 9 yUOjoP L8/y4I1 dY13B0 haqd7 EI gjZcg3eeha 5N9onz DQPPh5GSYRjh9GT0x5 pH/bgnrs8s2LGtFGyB1bseGZ GqsbST wcKXiup ZWtAK S NKiU XxiXnxK XSaFoF i3j3XgRRWL3it 5ys16ja zqzSdtY gI0pL1 ehGGGa 4FJpS wn7BgN LxSXPRa A3mQs jzHVL6I r8EyJlS XEvhg VVaAsIP 3LAjKJ g4taw2 J8XFAa zTj0zK7 83wuev Mj93W /V80zJ com1U DtMu3V RBtZiuchdtduF xYx9yV JMPjy WQae8iP Ey Ix8 RLsBuTI E3xNPQHE/uDt z8 #N P#8

SAP Manufacturing Execution SuiteHighlightsIntegration Excellence ERP integration “out of thebox” Easy integration with shopfloor automation layer Lot size 1 and masscustomization 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC#NP# JZBva8IwEIe/SsirjdmZatM/vquN Wqcd3b QiEhhZb V2YJCWJuiF 9 yUOjoP L8/y4I1 dY13B0 haqd7 EI gjZcg3eeha 5N9onz DQPPh5GSYRjh9GT0x5 pH/bgnrs8s2LGtFGyB1bseGZ GqsbST wcKXiup ZWtAK S NKiU XxiXnxK XSaFoF i3j3XgRRWL3it 5ys16ja zqzSdtY gI0pL1 ehGGGa 4FJpS wn7BgN LxSXPRa A3mQs jzHVL6I r8EyJlS XEvhg VVaAsIP 3LAjKJ g4taw2 J8XFAa zTj0zK7 83wuev Mj93W /V80zJ com1U DtMu3V RBtZiuchdtduF xYx9yV JMPjy WQae8iP Ey Ix8 RLsBuTI E3xNPQHE/uDt z8 #N P#Process Excellence Unit-level tracking & tracing Comprehensivenonconformancemanagement Process interlocking High performance with SAPHANAFlexibility & Agility ExcellenceUsability Excellence High flexibility and extensibility Pure browser-based UI Pure SOA-based architecture Role-specific access andpersonalized dashboardsfor operators Flexible production process modelingwithout additional programming9

SAP Manufacturing Execution Suite(ME/MII/PCo)Industry 4.0 enhanced scenarios to: Connect, monitor, and tightly control yourmanufacturing operations Control the production of every single unit to reducethe cost of quality 3D non-conformance management, from in-linesampling to visual testing and repairIntegration excellence to: Leverage seamless, out-of-the-box SAP ERP andS/4 HANA integration Extended integration Extended WarehouseManagement (EWM), Digital Manufacturing Insights(DMI) or Integration with Asset Intelligence Network(AIN)Performance: High performance manufacturing platform Flexibility and extensibility for operators and machineprocess control 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC#NP# JZBva8IwEIe/SsirjdmZatM/vquN Wqcd3b QiEhhZb V2YJCWJuiF 9 yUOjoP L8/y4I1 dY13B0 haqd7 EI gjZcg3eeha 5N9onz DQPPh5GSYRjh9GT0x5 pH/bgnrs8s2LGtFGyB1bseGZ GqsbST wcKXiup ZWtAK S NKiU XxiXnxK XSaFoF i3j3XgRRWL3it 5ys16ja zqzSdtY gI0pL1 ehGGGa 4FJpS wn7BgN LxSXPRa A3mQs jzHVL6I r8EyJlS XEvhg VVaAsIP 3LAjKJ g4taw2 J8XFAa zTj0zK7 83wuev Mj93W /V80zJ com1U DtMu3V RBtZiuchdtduF xYx9yV JMPjy WQae8iP Ey Ix8 RLsBuTI E3xNPQHE/uDt z8 #N P#10

SAP Digital Manufacturing in S/4HANA#NP# JZBva8IwEIe/SsirjdmZatM/vquN Wqcd3b QiEhhZb V2YJCWJuiF 9 yUOjoP L8/y4I1 dY13B0 haqd7 EI gjZcg3eeha 5N9onz DQPPh5GSYRjh9GT0x5 pH/bgnrs8s2LGtFGyB1bseGZ GqsbST wcKXiup ZWtAK S NKiU XxiXnxK XSaFoF i3j3XgRRWL3it 5ys16ja zqzSdtY gI0pL1 ehGGGa 4FJpS wn7BgN LxSXPRa A3mQs jzHVL6I r8EyJlS XEvhg VVaAsIP 3LAjKJ g4taw2 J8XFAa zTj0zK7 83wuev Mj93W /V80zJ com1U DtMu3V RBtZiuchdtduF xYx9yV JMPjy WQae8iP Ey Ix8 RLsBuTI E3xNPQHE/uDt z8 #N P#

Digital Manufacturing in S/4HANASAP S/4HANA Manufacturing for planning and schedulingManufacturing planning cockpitComprising a comprehensive planning environmentMaterial requirements planningProduction planningCapacity planning Advanced planning capabilitiesHeuristics and optimizers for finite planning & schedulingIndustry specific planning logic(e.g. block planning, model mix planning)Decision supportSimulation and ‘what-if’ analysis Comprehensive multi-level planning runs Covering all kinds of materials and planningmethods in one run Leveraging new planning approachese.g. Demand-driven replenishment: stock-level management 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC#NP# JZBva8IwEIe/SsirjdmZatM/vquN Wqcd3b QiEhhZb V2YJCWJuiF 9 yUOjoP L8/y4I1 dY13B0 haqd7 EI gjZcg3eeha 5N9onz DQPPh5GSYRjh9GT0x5 pH/bgnrs8s2LGtFGyB1bseGZ GqsbST wcKXiup ZWtAK S NKiU XxiXnxK XSaFoF i3j3XgRRWL3it 5ys16ja zqzSdtY gI0pL1 ehGGGa 4FJpS wn7BgN LxSXPRa A3mQs jzHVL6I r8EyJlS XEvhg VVaAsIP 3LAjKJ g4taw2 J8XFAa zTj0zK7 83wuev Mj93W /V80zJ com1U DtMu3V RBtZiuchdtduF xYx9yV JMPjy WQae8iP Ey Ix8 RLsBuTI E3xNPQHE/uDt z8 #N P#12