Licensing Overview SAP S/4HANA Cloud And On-premise

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Licensing OverviewSAP S/4HANA Cloud and on-premiseMarch, 13 2019Dirk Kästner, SAP S/4HANA Solution Management & GTM StrategyPUBLIC

Disclaimer The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permissionof SAP. Except for your obligation to protect confidential information, this presentation is not subject to your licenseagreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course ofbusiness outlined in this presentation or any related document, or to develop or release any functionality mentioned therein. This presentation, or any related document and SAP's strategy and possible future developments, products and orplatforms directions and functionality are all subject to change and may be changed by SAP at any time for any reasonwithout notice. The information in this presentation is not a commitment, promise or legal obligation to deliver any material,code or functionality. This presentation is provided without a warranty of any kind, either express or implied, including butnot limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. Thispresentation is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility forerrors or omissions in this presentation, except if such damages were caused by SAP’s intentional or gross negligence. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differmaterially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,which speak only as of their dates, and they should not be relied upon in making purchasing decisions. 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC2

Use of ERP and types of accessOne definition of use and three types of access3rd PartyCRMNon-SAPCustomFrontendSAP ERPDigitalCore3rd PartyApplication3rd PartyPlatformSAP Customer Experience 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC3

Topics: SAP S/4HANA LicensingSAP S/4HANA On-premise Licensing Licensing model for new customers Licensing model for existing customers Core versus extended scope – Licensing of Industry & LoB solutions Compatibility PacksSAP S/4HANA Cloud Licensing Direct User Access Industry & LoB Solutions Infrastructure ServicesSafeguarding our customers’ investments S/4HANA Product and S/4HANA Contract Conversion Cloud extension policyIndirect Use / Digital Access 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC4

SAP S/4HANA On-premise Licensing Model Licensing model for existing customers Core versus extended scope – Licensing of Industry & LoB solutions Licensing model for new customers Compatibility Packs

The 4 Dimensions of S/4HANA On-Premise Licensing (perpetual)Direct User Access to Digital CoreDigital Access (aka Indirect Use, via APIs)Enterprise Management forProfessional UseMonetizedacross all APIsEnterprise Management forFunctional UseEnterprise Management forProductivity UseS/4HANAMonetize partner appsvia revenue shareS/4HANA developer accessS/4HANA* Product subscription gives customer access to S/4HANA Cloud API Enablement Package** SAP to SAP integration included as part of core pricing(on-premise)LOB and Industry SolutionsHANA90 Addon Solutions (EWM, EHS, Treasury & Risk, Cash Mgt, etc),S4PPDSS4 CashMgmtEnterprise Management 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICEtc.HANA EnterpriseEdition (Full Use)HANA REAB(run-time)Based on GB ofMemoryBased on 15% HSAV(HANA SAP ApplicationValue)6

SAP S/4HANA OnPrem Licensing – For New CustomersDirect User Access to Digital Core and LoB & Industry SolutionsCommercially NeutralExtended Solution ScopeGlobal TradeS4 CashMgmt.RevenueStandalone solutionssold using the classicproduct numbers andmetricsMIIS4 CentralFinanceS4 AdvVariant ConfigUsersRevenueS/4HANA Enterprise ManagementCore Solution ScopeDatabase 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICSAP S/4HANA Enterprise Management for Professional use [7018652]SAP S/4HANA Enterprise Management for Productivity use [7018653]SAP S/4HANA Enterprise Management for Functional use [7018654]S4 DigitalAccessMetricS/4HANA LoB &Industry Add-ons arepriced based on asingle, value alignedmetric.S/4HANAEnterpriseManagementpriced with a UsermetricHANARun-time or Enterprise Edition7

SAP S/4HANA Licensing – For New CustomersDetails on Direct User Access to Digital Core7018652 SAP S/4HANA Enterprise Management for Professional use7018654 SAP S/4HANA Enterprise Management for Functional use Inventory AnalyticsReturnable Packaging LogisticsTransportation ManagementExternal ProcessingSubcontractingJust-in-time Inbound ProcessingKanbanRepetitive ManufacturingQuality EngineeringQuality ImprovementQuality InspectionManufacturing AnalyticsMaintenance Planning & Sched.Master Data MaintenanceProject Financial ControlProject Logistics Control 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Production BOM ManagementRecipe/Routing ManagementVariant ConfigurationInspection PlanningProduct Development FoundationWarranty ManagementService Request ManagementService Order ManagementService FulfilmentService Billing & SettlementMulti-Channel CustomerEngagementSales Order Management andProcessingOpportunity ManagementSales Lead ManagementActivity Management7018653 SAP S/4HANA EnterpriseManagement for Productivity Use Goods MovementWarehouse ManagementShippingAvailable to PromiseMaterial Requirements PlanningProduction ControlProduction ExecutionMaintenance ExecutionSelf-Service RequisitioningOrganizational ManagementTime Sheet7018682 SAP S/4HANA, developer accessThis license allows performing all role required operations, including management and system administration tasks.8

SAP S/4HANA OnPrem Licensing – For Existing ERP CustomersDirect User Access to Digital Core and LoB & Industry SolutionsGlobal TradeCommercially NeutralS4 CashMgmt.Extended Solution ScopeRevenueMIIS4 CentralFinanceS4 AdvVariant ConfigRevenueUsersS4 DigitalAccessMetricNO SAP NamedUsers required forS/4HANA enginesS/4HANA LoB &Industry Add-ons arepriced based on asingle, value alignedmetric.SAP ERPNamed UsersS4H Flat-fee: SAPNamed Users arerequired whenaccessing S/4HEnterpriseManagementS/4HANA Enterprise Managementfor ERP customers [7018538] - flat feeCore Solution ScopeERP packageFlat fee (includes 5 Prof. named users)Already have thisDatabase 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICHANAAlready have thisRun-time or Enterprise Edition9

SAP S/4HANA 1809 - Digital Core and LoB SolutionsOverview Business Areas, Solution Capabilities beyond Digital CoreSales & Marketing SAP digital payments add-on SAP CRMSuite LoBSolutions**S/4HANALoB Solutions*Enterprise Management Governance, risk, and complianceFinancial services networkSAP digital payments add-onSAP Cash ApplicationFinancial planning & analysis Sales performance management Subscription billing and revenuemanagement Advanced accounting & financial closeAdvanced financial operationsTreasury managementEnterprise risk and complianceCommodity management Order and contract management Sales force support Accounting and financial close Financial operations Cost management & profitability analysisSAP C/4HANA SAP Sales Cloud SAP Commerce Cloud SAP Marketing Cloud Service master data and agreementmanagement Service operations and processes Service parts managementS/4HANALoB Solutions* SAP CRMSuite LoBSolutions**ManufacturingFinance Responsive manufacturing (ME, MII, QIM, VE) Production operations (MII, QIM) Digital operations for manufacturingSupply Chain Integrated business planningGlobal batch traceabilityExtended warehouse managementTransportation management Extended production planning andscheduling Complex manufacturing Advanced warehousing Advanced transportation Advanced order promising Production planningProduction operationsQuality managementManufacturing insights Maintenance management Project control Product engineering Asset operations and maintenance Environment, health, and safety Enterprise portfolio and projectmanagement Product lifecycle management Product compliance Central procurement Asset performance and intelligence Digital operations for R&D Requirement management (IPD) Asset ManagementR&D / EngineeringSAP C/4HANAInventoryWarehousingShipping and transportationOrder promising Core HR and time recordingOperational procurementSourcing and contract managementSupplier managementProcurement analyticsInvoice managementSupplier collaborationBusiness networkGuided end-user buyingExternal workforce management Core human resources and payrollTalent managementTime and attendance managementHuman capital analytics SAP Service CloudService 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICSourcing & ProcurementHuman Resources10

SAP S/4HANA 1809 – Direct User Access to the Digital CoreFeature Scope DescriptionPublicly available on help.sap.com 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICChapter 2: scope of S/4HANAEnterprise ManagementChapter 3, 4: scope of S/4HANALoB- and Industry Solutions11

Guiding Principle: No surcharge on like for like functionalityEnh.CreditMgmntEWMGTSEnh.Credit edit MgtWMIntrastatERP CoreERP Licensing 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICSAP S/4HANAEnterpriseManagementLicenseS/4HANA LoB &Industry solutionsS/4HANAEnterpriseManagementLicenseERPERP LoB &Industry solutionsLicenseEven if ERP capabilities are realized in a solution that comes with its own license, we do not charge in case solely thefunctional scope is used, that is described as part of the S/4HANA Enterprise ManagementEngine LicensePrinciple of ONE drives us to deliver only ONE solution for ONE business problemEngine S/4HANA Licensing12

Compatibility Packs in SAP S/4HANAMotivationWhy allow the use of Compatibility Packs on SAP S/4HANA?– Make transition easier for customers usingSAP ERP/Business Suite– Allow sufficient time for redesign of business processes under S/4HANAOnly SAP S/4HANA solutions are allowed to run on an SAPS/4HANA installation– SAP S/4HANA is a new product, not the legal successor of SAPERP/SAP Business Suite products– Separation of the commercial worlds is essential [via Software UseRights (SUR)] ERP LoB &IndustrysolutionsS/4HANA LoB &IndustrysolutionsERP CoreSAP S/4HANAEnterpriseManagementERP LicensingS/4HANA LicensingERP LoB &IndustrysolutionsXSAP S/4HANAEnterpriseManagementXERP CorefunctionalitySAP S/4HANAEnterpriseManagementS/4HANA Licensingunless explicitly permittedvia „Compatibility Packs“ 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC13

Compatibility Packs in SAP S/4HANAOverviewSAP grants a timely restricted(1) use right for specific classic SAP solution functionality(2)to S/4HANA customers, at no extra cost(3)(1) restricted until the end of 2025(2) whitelist: compatibility packs as documented in note 2269324 and in the Software Use Rights (SUR)(3) condition: customer has licensed SAP S/4HANA and the classic solutionCompatibility Packs are only required for solutions which are installed on the SAP S/4HANAinstance – not for side-by-side installations.SAP aims to replace these classic solutions by the end of 2025with a genuine S/4HANA solution. 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC14

Compatibility Packs in SAP S/4HANAOverviewSAP grants a timely restricted(1) use right for specific classic SAP solution functionality(2)to S/4HANA customers, at no extra cost(3)(1) restricted until the end of 2025(2) whitelist: compatibility packs as documented in note 2269324 and in the Software Use Rights (SUR)(3) condition: customer has licensed SAP S/4HANA and the classic solutionCompatibility Packs are only required for solutions which are installed on the SAP S/4HANAinstance – not for side-by-side installations.SAP aims to replace these classic solutions by the end of 2025with a genuine S/4HANA solution. 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC15

Compatibility Packs in SAP S/4HANAA Bridge Into the New World – Side-by-side versus On-stack InstallationRunning a classic SAP ERP solution side-by-side with SAP S/4HANA does not requirea Compatibility Pack.LoB & IndustrySolutionsERP CoreSystem 1 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICS/4HANALoB & IndustrySolutionsHCMSAP S/4HANAEnterpriseManagementSystem 2conversion HCMSystem 2System 1/S416

Compatibility Packs in SAP S/4HANAA Bridge Into the New World – Side-by-side versus On-stack InstallationExample: HCM as on-stack installationHCMHCMS/4HANALoB & IndustrySolutionsLoB & Industry SolutionsLoB &IndustrySolutionsUsage allowed viaCP onlyconversionERP CoreSAP S/4HANA EnterpriseManagementSystem 1System 1/S4 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC17

Compatibility Packs in SAP S/4HANAOverviewSAP grants a timely restricted(1) use right for specific classic SAP solution functionality(2)to S/4HANA customers, at no extra cost(3)(1) restricted until the end of 2025(2) whitelist: compatibility packs as documented in note 2269324 and in the Software Use Rights (SUR)(3) condition: customer has licensed SAP S/4HANA and the classic solutionCompatibility Packs are only required for solutions which are installed on the SAP S/4HANAinstance – not for side-by-side installations.SAP aims to replace these classic solutions by the end of 2025with a genuine S/4HANA solution. 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC18

SAP S/4HANA Cloud Licensing Direct User Access Industry & LoB Solutions Infrastructure Services

The 4 Dimensions of S/4HANA Cloud Licensing (subscription)Direct User Access to the Digital CoreSelf-Serve UseCore UseAdvanced UseFeaturesFeaturesFeaturesDigital Access (aka Indirect Use, via APIs)Monetizedacross all APIsMonetize partner appsvia revenue shareS/4HANACloudSolution Add-Ons Premium capabilities Specialized process* Product subscription gives customer access to S/4HANA Cloud API Enablement Package** SAP to SAP integration included as part of core pricingInfrastructure ServicesIncludedOptional100 GB2 tenantsRealSpendCashMgmtProductionTenant 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICQualityTenant Incremental memory extension Disaster Recovery Differentiated tenants Preferred CareSpecializedTenant20

One SAP S/4HANA: the right solution for each customer cloud journey*according to Gartner Cloud (SaaS) DefinitionCloud ERP*SAP S/4HANA CloudSAP S/4HANA Cloud,single tenant editionERP in the CloudSAP S/4HANAERP OPSAP S/4HANA(Private cloud managed by SAP) (On-premise managed by cloudproviders or customers)Highly standardized,multi-tenant cloudservices coveringselected LoB- andindustry scenarios and acomprehensive ERPscopeStandardization, TCOand scalability of thecloud combined with thefull functional scope,extensibility and reach ofthe S/4HANA solutionIndividually sizedinfrastructure andapplication managementservices moving yoursystem to the nextgenerationStandardized nextgeneration ERPsolution that can berun and extendedaccording to customerpreferencesRapid innovation at thelowest TCOCloud standardizationat attractive TCOYour SAP guidedelevation to the publiccloudNext generation ERPsystem for onpremise use 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC21

One SAP S/4HANA: the right solution for each customer cloud journeyCloud ERP*SAP S/4HANA CloudERP in the CloudSAP S/4HANA Cloud,single tenant editionSAP S/4HANA(Private cloud managed by SAP)ImplementationGreenfield with data migrationGreenfield with data andconfiguration migrationGreenfield or conversion of existingimplementationsFunctional ScopeBusiness configuration of standardized core ERP andselect LOB processesFull functional S/4HANA scope of core ERP andextended LOB and industry processesFull functional S/4HANA scope of core ERP andextended LOB and industry processesIndustries SupportedIn-depth support for professional services andcomponent manufacturing;more industries on road mapAll industries supportedAll industries supportedExtensibilityS/4HANA Extensibility Framework and extensions viaSCP, using whitelisted APIsS/4HANA Extensibility Framework and extensionsvia SCP, with full extensibility optionCustomization, modification, and extensibilitypossibleInnovation CycleQuarterlyUp to 2 upgrades a yearAnnual;speed of adoption on customers’ scheduleDeployment BenefitsMulti-tenant environment,Lowest TCO and fastest time to valueSingle-tenant environmentLow TCO and fast time to valueCustomer controlled deployment andimplementation effortsLicensingSubscription licensingSubscription licensingBYOL infrastructure subscriptionInfrastructureShared public cloudDedicated system landscape on cloudinfrastructureCustomer specific system landscapeRuns on SAP HANA Enterprise Cloud 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC*according to Gartner Cloud (SaaS) Definition22

SAP S/4HANA Cloud Licensing – Multi Tenant EditionDetails on Direct User Access to Digital CoreSAP S/4HANA Cloud for advanced useThis license allows performing all role required operations including self-service configuration tasks.SAP S/4HANA Cloud for core use External ProcessingInspection PlanningInventory Analytics and ControlJust-in-time Inbound ProcessingKanbanMaintenance Planning & SchedulingProduct Development FoundationProduction ControlProduction ExecutionProject Financial ControlQuality EngineeringQuality ImprovementQuality InspectionSales Order Management and ProcessingService Order ManagementSubcontracting capabilities of S/4HANA Cloud for self-service use 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICSAP S/4HANA Cloud for self-serviceuse Available to PromiseDelivery ManagementGoods MovementMaintenance ExecutionMaterial Requirements PlanningProduction ControlProduction ExecutionSelf-Service RequisitioningTime SheetTransportation ManagementWarehouse Management23

SAP S/4HANA Cloud 1902 – User Capabilities for Multi Tenant EditionFeature Scope DescriptionPublicly available on help.sap.com 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICChapter 4: scope of S/4HANA Cloudfor Enterprise ManagementChapter 5: scope of S/4HANA CloudLoB- and Industry Solutions24

SAP S/4HANA Cloud Licensing – Single Tenant EditionDetails on Direct User Access to Digital CoreSAP S/4HANA Cloud for advanced useThis license allows performing all role required operations, including management and system administration tasks.SAP S/4HANA Cloud for core use External ProcessingInspection PlanningInventory Analytics and ControlJust-in-time Inbound ProcessingKanbanMaintenance Planning & SchedulingMulti-Channel Customer EngagementOpportunity ManagementProduct Development FoundationProduction BOM ManagementProduction ControlProject Financial ControlProject Logistics ControlQuality EngineeringQuality ImprovementQuality InspectionRecipe/Routing ManagementRepetitive Manufacturing Returnable Packaging LogisticsSales Lead ManagementSales Order Management andProcessingService Billing & SettlementService FulfilmentService Request ManagementService Order ManagementSubcontractingVariant ConfigurationWarranty ManagementSAP S/4HANA Cloud forself-serve use Available to PromiseDelivery ManagementGoods MovementMaintenance ExecutionMaterial Requirements PlanningOrganizational ManagementProduction Co

HANA Enterprise Edition (Full Use) Based on GB of Memory HANA REAB (run-time) Based on 15% HSAV . Time and attendance management Human capital analytics Supplier collaboration . compatibility packs as documented in note 2269324 and in the Software Use Rights (SUR) (3) conditi