WIXLIB

SAP Tax ComplianceSmart Automation on Compliance Issue ProcessingWith every new decision the company‘s Tax KnowledgeBase grows andSAP Tax Compliance allows your Tax Managers to Transparently apply HANA’s AutomatedClassification Benefit from the company‘s memory of its taxBusiness Benefits Automatically learn from new decisions Increase efficiency by smart compliance issueprocessing automation Seamless integration of ML algorithms into theSAP Tax Compliancemanagers past decisions Automate compliance issue processing and limithuman interaction to exceptional cases Choose level of automation on compliance checkbasisUser Interaction 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC21

SAP Quantity Contract ConsumptionAnticipate contract renegotiations in timeBuyers need to re-negotiate contracts that are soon to be expired. TheMachine Learning algorithms identify the contracts that are at the end ofthe term and provide the probability if a contract is going to beconsumed sooner than expectedSAP Quantity Contract Consumption advise procurement leaders toBusiness Benefits Enhanced usability for the businesses visualizing with predictionsEarly & efficient supplier renegotiationBetter prices for goods from suppliersEnhanced purchasing complianceProviding predictive analytics for the business scenarios Anticipate contract renegotiations in time Negotiate with supplier early and efficiently Define the predictive models, train and run the scenarios Pre-built set of KPIs allow for robust analytics on S/4HANA clouddata with drill down functionality 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC22

SAP Cash ApplicationIntelligent receivables automation powered by SAP Leonardo Machine LearningHistoryPaymentsInvoicesPayment advicesSAP LeonardoMachine LearningMatching proposals andautomated paymentclearingSAP Cash Application software intelligently learns matching criteria from your history,reads and processes payment advice documents,and automatically clears payments with minimal intervention.Improves days salesoutstanding 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMERPUBLICIntegrates smoothlywith SAP S/4HANAAllows shared services toscale as the business growsDrastically reduces manualeffort to focus on strategictasks and service quality23

2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC ǀ 59655enUS (18/09)Using cloud analytics with SAP S/4HANA lets HOERBIGERdiscover, visualize, and share insights in one future-fit system.Operational dashboards in the SAP Analytics Cloud solution present data from SAP S/4HANA in realtime so that HOERBIGER can: Establish a reporting system for plants with globally defined KPIs to improve plant performance Shorten audit times and reduce the support efforts in IT to free staff for more strategic tasks Control access to data and analytics based on global governance policies Ensure consistency and trust across the enterprise with a single version of truth sourced directly from ERP Provide role-based access to real-time data over virtual private networks or mobile devices Empower users to create data models and visualizations“In this smooth integration of data from SAP S/4HANA with the analytics features of SAPAnalytics Cloud, HOERBIGER has found a long-sought information management solution,becoming a truly intelligent enterprise that thrives through analytics-driven insights.”Teja Ullrich, Senior Vice President – Corporate IT, HOERBIGER Wien GmbHHOERBIGERHolding AGZug, SwitzerlandIndustryIndustrialmachinery andcomponents 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICEmployees7,300Revenue 1.2 billionFeatured Solutions and ServicesSAP S/4HANA and SAP Analytics Cloud24

Ways of communicating SAP S/4HANA impact to your shareholdersSAP S/4HANA impact on stock priceKey Shareholder Value LeversRevenue / GrowthVarious S/4HANA customersInorganic:M&A, divestituresSales VolumeProfitabilityPriceFlexibilityNew business model, new segments, betterpricing, subscriptions, improved customervisibility & 360Better demandplanning14% newrevenueLower stock-outs10-30% lowerrevenue leakageProduct performancereal-time analytics5% higherquality (reduced remakes)Higherbrand reputation15% higheron-time delivery20 FTE leanercustomer service staff0.5% lowersampling costs 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICCost of Goods Sold(COGS)Selling, General &Administrative(SG&A)Faster cycle, lower risk areas (prone to errorand fraud), automation of manual tasks,standardizing & scaling40% reducedTime for Projectcreation20%40% fasterProcessing time for contractcreationprocurementMoved from CAPEX to3% lowersavingsOPEX and in processraw materialsremoved the need forspendHardware Refresh Cycle20-30%25% lower5% lowerlowerobsolescence R&D84%annual spend on6% lowerexpense selected suppliers processStandardifreight rateszationAsset EfficiencyFixed assets such asProperty, Plant &Equipment (PP&E)Liquid assets such asreceivables andinventoryMore efficient use of assets; tear & wear,preemptive actions on maintenance andrepairs, lower inventory, optimized cashSeamlessIntegration withTime Sheet Systemfor InvoicingSimplifiedProcessStructure(alignment withStandard SAP)Refresh cycle time reducedby 50% by using AWS10%, one timeLambdainventoryreduction5-10% higherUp to 40% lowerasset uptimeDSOStrategicSpeed, comprehensiveness,reliability, agilityE.g., reduce business andoperations reporting costswhile improving the analyticsresults67% fasterEnhanced userFinancial closingExperience(15 days to 5using FIORIdays)39 FTEs repurposedacross Finance and ITFaster Go to market timewith scalable and highlyAvailable EnvironmentSimpler and2.5-5% more accuratefasterscrap and varianceprocess reportingreporting25

Thank youGraciasContact information:Kevin McConnellIntelligent Technologies Solution う谢谢Danke

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Appendix

SAP Predict Arrival of Stock in TransitPredict and manage delivery delaysFor companies issuing and receiving good from and to their plants, it isimportant to track the status of the materials in transit in order to takeaction in case of problems. The "Materials Overdue – Stock in Transit”app gives an overview of the open shipments allowing the business userto take action. With PAI we are enhancing the app with ‘PredictedShipment Dates’ for each Goods Movement to allow Users to take actionto manage delivery delays.Business Benefits Optimize and automate the business process of tracking Stocks InTransit Overall more reliable planning / scheduling of goods in transitprocesses Providing predictive analytics for the business scenarios Enhanced usability for the businesses visualizing with predictionsSAP Predict Arrival of Stock in Transit allows warehouse managers to Predict the arrival date of a shipment and classify the status intodifferent classes Defining the predictive models, training and running the scenarios Pre-built set of KPIs allow for robust analytics on S/4HANA cloud datawith drill down functionality. Early & efficient visibility for stock transport orders New integration capabilities with SAP S/4HANA Cloud to gain realtime insights in produce scenario’s with predictive analytics 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC29

Payment Block - Cash Discount at RiskAvoid loss of cash discountsThe invoicing process is already a highly digitalized and automated process.Algorithms are checking the invoices against the existing Purchase Orders andthe procurement rules. In spite of a highly automated invoice matching processthere are always exceptions which need manual interaction from purchasers oraccounts payable experts, e.g. because of unplanned additional costs in theinvoice or quantity / price deviations. These exceptions are time consuming andexpensive. Supplier invoices automatically get blocked if a blocking reasonoccurs, and the responsible purchaser has to solve the underlying issues.Business Benefits Reduce effects for exception handling and recurring tasksProcess automation to enable faster decision makingAvoid loss of cash discountsEnable employees focus on important tasksThe process can be further automated by getting recommendations to track,analyze, and solve the situation. The faster processing time will also avoid loss ofcash discountsSAP Payment Block - Cash Discount at Risk allows accountants andpurchasers to: Proactively display issues requiring attention, all relevant information, andactions in one place Analyze the underlying issues with detailed data context Receive recommendations based on former user behavior Avoid loss of cash discounts 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC30

SAP Smart Alerts for Profit & Loss AnalysisGet informed of hidden unusual costs and revenue opportunitiesSmart Alerts aims to autonomously detect unusual business situationsin revenue and cost accounts. Smart Alerts will pro-actively inform thegroup controller of potential issues and propose explanations for unusualbusiness situations by analyzing the revenue and cost data.Business Benefits Decrease time for investigation Earlier detection of unusual business situations Better collaboration through annotationsSAP Smart Alerts for Profit & Loss Analysis allows your controller to Automatically explore the multi-dimensional space of available filtercombinations Detect unusual increases and decreases in single key figuresNotify about changes in trending behaviorWarn about correlation changes between multiple key figuresAllow users to collaboratively expand on those automatic findings byplacing annotations 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC31

Project Cost ForecastingPredicting project costs ahead of timeProjects often do not meet their budget and timeline. Typical reasons are basedon inadequate data and imperfect forecasting techniques, as well as political andpsychological factors. So users often tend to be overly optimistic or, on thecontrary reserve safety buffers resulting into poor project planning andforecasting. In addition project cost planning and forecasting can be quite effortintensive.Using machine learning in combination with reference class forecasting, i.e. bylearning from past projects, the system can derive project forecasts based onfacts, rather than on subjective criteria. The first focus is on cost forecast forprojects and Work Breakdown Structure (WBS) elements in SAP S/4HANA(cloud). The use case can be extended at a later point in time to cover forexample investment portfolios as well as other project key figures apart fromcosts such as revenues, durations and schedules, or resource demands.Business Benefits Cost savings: Less budget overruns and better project investmentdecisions based on more realistic estimations Efficiency: Reduced effort for project cost planning and forecastingwhile improving the accuracy Customer satisfaction: Improved customer satisfaction due to abilityto deliver projects on timeMonitor and control projectSo the accuracy of project cost forecasts can be increased and hence the risks ofbudget overruns reduced. In addition manual efforts can be drastically reduced.Project Cost Forecasting allows the Project Manager to Forecast the project cost with increased accuracy Reduce the risks of budget overruns Reduce Manual Efforts 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICSet up ProjectStructuresPlanprojectsExecute projectsProjectperiod-end closing &project closure32

SAP Business Integrity ScreeningDetect and rank information that positively correlates with anomaliesInvestigators may add supervised machine learning capabilities toscreening strategies leveraging their company’s investigative history –without expert knowledge in data science and algorithm tuningSAP Business Integrity Screening allows your Business Analysts andInvestigators toBusiness Benefits Detection of new suspicious patterns Reduction of false positives Seamless integration of ML algorithms into the proven SAPBusiness Integrity Screening framework Automatically detect and rank attributes within classified data thatpositively correlate with anomalous cases Incorporate them with existing detection methods into new BusinessIntegrity Screening strategies Seamlessly integrate algorithms of HANA’s Automated PredictiveLibrary (APL) Leverage robust, state-of-the-art machine learning algorithms 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC33

SAP Tax ComplianceSmart Automation on Compliance Issue ProcessingWith every new decision the company‘s Tax Knowledge Base grows andSAP Tax Compliance leverage this by continually classifyingcompliance issues and trigger automated correction measures or closethem as false positives. In rare cases human interaction is requested todo the decision.Business Benefits Automatically learn from new decisions Increase efficiency by smart compliance issue processingautomation Seamless integration of ML algorithms into the SAP TaxComplianceSAP Tax Compliance allows your Tax Managers to Transparently apply HANA’s Automated Classification Benefit from the company‘s memory of its tax managers pastdecisions Automate compliance issue processing and limit human interactionto exceptional cases Choose level of automation on compliance check basisAutomated ProcessingIllustrationUser InteractionAutomated Completion 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC34

SAP Leonardo embedded in S/4HANAMachine Learning and Predictive AnalyticsSAP S/4HANAMaterial ManagementSAP S/4HANASalesSAP S/4HANASalesSAP S/4HANASourcing andProcurement SAP Leonardo SAP Leonardo SAP Leonardo SAP Leonardo 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICSAP Predictive AnalyticsSAP Predictive AnalyticsSAP Predictive AnalyticsSAP Predictive Analytics 1808-1811Dynamic buffer level adjustmentOptimizes inventory buffers based on replenishment leads timeSales Forecast PredictionForecast sales based on predictive analyticsDelivery PerformanceForecast sales based on predictive analyticsSupplier Delivery DelayForecast sales based on predictive analytics35

Demand-Driven ManufacturingDynamic Buffer Level AdjustmentIn the planning method of “Demand-Driven Replenishment”, one key element isthe dynamic adjustments of buffer levelsOne key input for the buffer levels recalculation is the buffer replenishment leadtime. The buffer levels depend proportionally on this lead time.The more accurate the lead time can be determined, the better the buffer can besized: big enough to ensure customer service levels, small enough to reducebound capitalBased on historic lead times and their business context suggest buffer leveladjustments to serve best the ever-changing realityBusiness Benefits Ensure best possible customer service levels at lowest possible costs(i.e. bound capital through buffered stock)Demand-Driven Replenishment allows the Inventory Manager to Evaluate historic lead times of stock transfer orders Consider context information of orders to identify patterns and dependencies 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC36

Supplier Delivery PredictionAvoid delayed raw material availability or production reschedulingMaterials required for production are supplied by multiple suppliers. Thedelay in delivery would impact on-time production at plant andrescheduling assembly lines which is very costly. Indirect material delayalso cause delay in supporting employees with required product/service.The Machine Learning algorithms identify the supplier delays based onthe multiple situation and predicts the chances of delay. During creationof PO / PR, the lead time from material mater sometimes don’t take theprocessing and approval time into consideration.Business Benefits More reliable planning / delivering of materialsAvoid production delay and re-schedulingDecrease manual effort to monitor & resolve issues earlierUp to date lead time update for goods/services at master levelfor direct and indirect procurementSupplier Delivery Prediction allows purchasers to Predict more reliable delivery lead time when creating PR / PO Predict the arrival date of a shipment and classify the status intodifferent classes The recommendations are enriched with insights gathered by themachine learning algorithm The results based upon transaction data predictions can later bereused at triggering sources such as Material RequirementPlanning(MRP) or Source of Supply(SoS) to update delivery lead timeor related parameters to avoid delays, thereby achieve deliveryperformance optimization. 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC37

SAP Leonardo SAP Predictive Analytics Live! SAP Leonardo SAP Predictive Analytics SAP S/4HANA Sales Analytics Sales Quotation Conversion Improve Sales Forecasts SAP Leonardo SAP Predictive Analytics Payment Block -Cash Discount at Risk Avoid loss of cash discounts SAP S/4HANA Procure-to-Pay SAP S/4HANA Finance SAP Leonardo SAP .