Taking the first step to a

Perfect Enterprise with

S/4HANA SAP Simple Finance

SAP’s Next Big Thing

R/2

1979

R/3

1992

ERP

2004 2015

SAP Simple

Finance powered

by SAP HANA

SAP Business

Suite powered

by SAP HANA

SAP HANA

SAP Business

Warehouse

powered

by SAP HANA

2011 2013 2012 2014

real-time analysis

real-time reporting

real-time business

olap & oltp together

SAP HANA Enterprise

Cloud for Suite on

HANA

2015 >

in-memory

platform

instant financial

insight

no aggregates

single source of truth

simplified data model

new user experience

advanced processing

choice of deployment

multi-tenancy

SAP HANA, the great simplifier of enterprise software

Boardroom of the Future

SAP S/4HANA – new suite designed for the ultimate

sophistication: simplicity

Simple Data Model Without aggregates

• All enterprises

• All industries

• All roles

• All data

• All regions

• All deployments

• All extensions

Without redundancy

Simple User Experience Role-based

All devices

Simple Business Solutions Digitally connected

Real time

Logistics (Quantities)

Logistics (Valuation via „MBEW“)

Material Ledger (multi GAAP, multi currency)

Accounting

PROCESS SIMPLIFICATION

• Eliminate process & data redundancies drop tables for Material Valuation

• Eliminate lock for standard price postings enable parallel postings

• Outlook: concept for moving average price

KEY BENEFITS

• Only one valuation solution

• Increase throughput (no locks for standard price valuation)

• Reduction in memory footprint and runtime

• Supporting market trends: More insights into actual costs

Bu

sin

ess S

uite

Logistics (Quantities)

Material Ledger (multi GAAP, multi currency)

Accounting

MDOC ACDOCA

Material

Prices

Material

Master Data

s-i

nn

ova

tio

ns

MARD

MARC

MBEW

OBEW

QBEW

OBEW

MSTQH

MSTEH

MSTBH

MSSQH

MSSAH

MSPRH

MSLBH

MSKUH

MSKAH

MKOLH

MCHBH

MARDH

MARCH

MSTQ

MSTE

MSTB

MSSQ

MSSA

MSPR

MSLB

MSKU

MSKA

MKOL

MCHB

MKPF

MSEG

MBEWH

OBEWH

QBEWH

OBEWH

MLHD

MLPP

MLIT

MLCR

Document

MLPPF

MLCRF

CKMLPP

CKMLCR

Totals

CKMI1

Index

GLPCA

ZZFISLA

FAGLFLEXA

GLFUNCA

COFIS

BKPF

BSEG

COBK

COEP

ANEK

ANEP

GLPCT

ZZFISLT

FAGLFLEXT

GLFUNCT

COSP

COSS

COFIT

BSIM

BSID

BSAD

BSIK

BSAK

BSIT

BSAT

BSIS

BSAS

Document

Totals Totals

Totals

Indices

Documents

BKPF

Technical Benefits of SAP S/4HANA – ex. Simplified Logistics

Full Flexibility Reduced Data Footprint Higher Throughput

FI Postings Customers Products Profit Centers Suppliers

FI Postings Customers Products Profit Centers Suppliers

ON-THE-FLY AGGREGATION

ERP on anyDB

ERP on HANA

7.1 TB 1.8 TB 0.8 TB 0.5 TB ACTUALS

S4HANA

(estimate)

No Indices

No Aggregates

No Redundancy

ERP on anyDB

S4HANA

(estimate)

3 1

Enterprise Software for Big Data and Agility

SAP S/4HANA – Technical & business values

SAP S/4HANA – unique value for business

Reimagined

Business Models

Simplicity to connect to people,

devices, business networks

Reimagined

Business Decisions

Simplicity to get any insight on

any data from anywhere

Reimagined

Business Processes

Simplicity to focus on the essential tasks

and change business processes

No more batch – all processes in real time

No more complex collaboration –

all business connected

No more manual consolidation – all decisions

on the fly and at the highest level of granularity

S/4

HANA

Q1 2015 Q2 2015 Q3 2015 Q4 2015

SAP S/4HANA

Private Managed Cloud

SAP S/4HANA

Public Cloud

SAP S/4HANA

Public Cloud

SAP S/4HANA

Private Managed Cloud

SAP S/4HANA

on-Premise

DISCLAIMER: This map represents SAP’s current plan, but subject to change without any prior notification. Certain planning constraints such as regulatory and licensing issues are outside

of our control and may impact the timelines

Continuous

innovations without

disruption in 2016

and beyond

Yearly innovation cycle

SAP S/4HANA

On-Premise

Quarterly innovation cycle

Roadmap 2015

Cornerstone of

S/4HANA SAP Simple Finance

User Experience

& Productivity

Simplified &

Accelerated

Processes

Flexible & Real-time

Reporting

Flexible & Real-time

Reporting

Simplified Data Model

BSIS BSIS BSIK BSET LFC1 GLT0 GLT0

Number of inserts / updates

BKPF BSEG BSEG BSEG

SAP Finance with aggregates and indices

BSIS BSIS BSIK BSET COBK COEP LFC1 GLT0 GLT0 GLT0 COSP

SAP Simple Finance

Optimized for SAP HANA

Simplified Data Model

SAP

Simple

Finance

Obsolete – Reconciliation of multiple ledgers – because redundancy has been eliminated

Obsolete – Reconciliation Ledger – due to real-time integration from CO to FI

Obsolete – Reconciliation of totals vs. line items – because totals are dropped

Obsolete – Reconciliation of ERP and warehouse – due to real-time analytics on OLTP

Reconciled by Design – FI versus CO – due to 1:1 link on line item level

Reconciled by Design – FI versus CO-PA – due to link to CO-PA characteristics table

Faster financial close and lower costs

Significantly Reduced Reconciliation Effort

Agile Reporting

Out-of-the-box Self-Service

DSO by Region

DSO

User-defined reporting

Users can explore data on the fly by restricting

financial statements to self-defined data sub-

segments

SAP will continue to provide standard reports

but with focus on frequently used reports

Available information

All record dimensions can be used for

segmentation

Unrestricted selection of multiple dimensions for

segmentation

Customer-specific dimensions can be easily

added and are available for segmentation

Self-Service Reporting with SAP Business Intelligence

Financial Planning

and Analysis

Collaborative

Finance Operations

Accounting and

Financial Close

Treasury and Financial

Risk Management Manage Enterprise Risk

and Compliance

DSO by Region

DSO

• Merge operational and

financial data

• Visualize where your cash,

profits, costs and margins

are

• Tell the story to optimize

your outcome

• Share and collaborate with

other teams

DEMO

Data Visualized with SAP Lumira

Simplified &

Accelerated

Processes

Process status

analytics

Transaction

monitoring

Control and

risk analytics Real time process oversight

Personalized

analytics

Elimination of

batch execution

Real time

reporting

Intra-period

simulations

Continuous intra-

period execution

Acceleration of

bottleneck steps

Instant

insight to

action

Real time

process

execution

Continuous

Process

Towards Real Time Finance Processes: Real Time Close

Line Items Instead of Totals

No need to update multiple tables

Increased data throughput by overcoming lock issues on totals tables

Code Push Down into SAP HANA

WIP calculation for production orders

Variance calculation for production orders / cost centers

Results Analysis (POC method and revenue method)

Other Measures

Order Settlement (optimized object selection)

In addition to speed-up delivered with HANA accelerators and SAP Business Suite powered by

SAP HANA which improve other key Finance transaction by factors by up to 100+.

~ 30x faster

~ 2x throughput *

~ 1.5x faster

* versus Suite on HANA

Significant Process Acceleration

Simplification of Processes, an example

1. GR/IR Clearing Account

2. G/L Account Line Item Display

3. Vendor Master Record Display

4. Purchase Order Display

5. FI Document Display

6. Material Display

7. Invoice Document Display

8. Manual table extraction to Excel

9. Manual Excel Pivot set-up

10.Reconciliation

Demo

FBICR3

Reconcile Documents

FBICS3

Select Documents

FBICA3

Assign Documents Automatically

New user experience Improved data drill down

Reduced time to close

books

• Improved and accelerated

automated matching

• No more batch jobs, real time

analysis supports continuous

intra-period process execution

• Better process oversight

through new management

dashboard

• Improved user experience and

enhanced data drill down

reduce manual reconciliation

effort

Another example: Intercompany Reconciliation on the Fly

Execute Entity Close

Management

Monitor

Plan

Analyze

Process Harmonization, based on Global Close Plan

Real Time Cash and Liquidity Management

Real Time Receivables Management

Real Time Working Capital Analytics

How much cash do I

have and how much

will I need to fund the

business?

What is the status of

my key drivers of

working capital like

DSO or DPO?

How can I accelerate

cash collection to

improve DSO?

Real Time Working Capital Management

” “ From administrative process to customer intimacy

Continuous Cash Collections

Challenges Resource intense

Manual preparation

High error rate

Multiple process flows

No situation context for resolution

Low resolution rate

Benefit Drivers Executive management cockpit

Field alerts & payment status

in real-time

Integrated field & AR team

collaboration

Proactive field resolution

Automated payment matching

Expected Benefits

25% Lower DSO

10% Lower Overdue A/R

22% Lower A/R Write-offs

35% Reduction in FTE's for A/R

SAP Receivables Manager

supporting the Receivables Manager in

Finance to monitor a continuous process

SAP Customer Financial Fact Sheet

enabling sales representatives to resolve

open issues directly with the customer

Real time

Real Time Receivables Management

Bank Statement

Monitor whether bank

statements have all

been imported

successfully.

Cash Position

Review yesterday’s

bank-confirmed

position, and forecast

today’s closing

balance.

Bank Transfer

Make bank transfer in

case of deficit or

surplus.

Payment Approval

Approve big-amount

payment or bank

transfer.

Daily Cash Operations

User Experience &

Productivity

Business Cockpits and Transactional Apps for all Finance Roles

Accounts Payables

Financial Closing General Ledger

Controlling

Customer Cases SAP Simple Finance

” “ Already more than 100 SAP Simple Finance customers

>65% Faster financial close processes*

>50% Faster foreign currency revaluation*

1,000x Faster reporting (from 15 minutes to 1 second)*

>400 hours Cut from close processes

86% faster Real-time analytics

91% faster Automatic maintenance revenue accruals

* Results from proof of concept

SAP Simple Finance Early Adopter Success

“Zurich wanted to be one of the first

customers to evaluate the financials

innovation delivered with SAP

HANA. Deployed as a simple add-on

for SAP Business Suite powered by

SAP HANA, we are really impressed

by the results in terms of the

performance, simplification, and

agility it could bring to our finance

community”.

Wilco Boosman, Director SAP

Convergence, Zurich Insurance

Group

“Deloitte has been collaborating with

SAP on the next generation Finance

solutions and we have significant

experience with SAP HANA, as we

use it within our own financial

systems. The role of the CFO and the

CFO’s team continues to evolve, and

this new wave of innovation will allow

finance professionals to access

information in new ways enabled by

the speed and power of SAP

HANA. This will help to drive

ongoing finance transformation as

we see it at Deloitte.”

Jan Waals, principal and global SAP

practice leader, Deloitte Consulting

LLP

“Our first experience with SAP Simple

Finance powered by SAP HANA has

proven to be the right solution to drive

our key financial processes and

reporting in real-time. Our finance

users were really impressed by the

ability to perform reporting and

analytics on item levels.

Reconciliations of costs and financial

accounting can now be done at any

time. I’m fully confident this is the way

forward to run finance at DSB.”

Ken Kastrup Nielsen, IT Finance

Specialist, DSB (Danish State

Railways)

SAP Simple Finance Early Adopter Success

“As a leader in high security technology,

innovation is critical for us, which includes

implementing our internal processes, such

as finance, on the latest technology

platform. SAP, with its SAP HANA

technology, is definitely ahead of the

competition with its database

technology and speed. We have run

SAP ERP since 2002, and will now change

our platform to SAP HANA, to enable us to

take advantage of SAP’s continuing

innovations such as SAP Simple Finance,

to meet our goal of being a technology

leader both in our own business, as well

as in our internal support processes.”

Christian Helfrich, CFO,

Bundesdruckerei (Germany)

“The financials add-on for SAP Business

Suite powered by SAP HANA was

deployed in less than two months without

any disruption to our business. We now

have one common platform for both

regulatory and managerial accounting

as well as on-the-fly financial processes.

This innovation will help us deliver stronger

financial leadership through better advice

on strategic and operational plans that

impact the business performance and

effectiveness of SAP.”

Luka Mucic, Chief Financial Officer, SAP

SE

“To a great extent, our ability to achieve our

‘Future-Ready’ goals is underpinned by

technology. It permeates nearly every facet

of what we do and how we do it, both at

work and at home. Our students live in a

technological era and we must provide a

consistent environment so that their learning

life and their social life can seamlessly

blend. Our teaching staff and researchers

must have administrative overhead lifted

from them so they can concentrate on their

core activities. As an example, with SAP

Simple Finance, our finance organization

will be able to focus on the most

essential tasks and get the job done in

real time. We must create nimbleness in

our organization through the application of

lean principles and insight into information.

SAP has helped deliver in all these

dimensions so far and we are very much

looking forward to our continued strong

partnership.”

John Dewar, President and Vice

Chancellor, La Trobe University.

SAP Simple Finance Early Adopter Success

SAP Simple Finance at Major values realized

Simple receivables management

through integration of finance

and sales functions

10%

Account Receivables

Receivables Management

Shifted focus from data

preparation to analysis and

interpretation

Books Closing

Fast Close Enablement

Improvement on

processing time

Reduction in G/L

posting corrections

Intercompany reconciliation

moved to a real-time process

Intercompany reconciliation

Real-Time capabilities

SAP HANA platform

No aggregates

Increased performance

Reduction in

time to process

reconciliation

issues

Days sales

outstanding

reduction

28%

40% 70%

SAP Simple Finance @ Zurich Insurance Group Closing Runtime Comparison

SAP Simple Finance @ Zurich Insurance Group General Accounting Runtime Comparison

Appendix

Business Suite on HANA

SAP HANA Platform

Aligned Single source of truth

Agile Real time processes

Predictive Dynamic planning and analysis

SAP Cash Management powered by SAP HANA

New product for

group cash management

SAP Accounting powered by SAP HANA

Alternative in-memory

functionality for ERP customers

Integrated

Business Planning

New capabilities and enhanced

integration for ERP and BPC.

SAP Simple Finance

In-Memory Database

Predictive

Engine

Business

Function

Library

Planning

Engine

Unstruc-

tured Text

Engine

SAP HANA Platform

SAP

BPC

SAP

BI

SAP HANA Live (Virtual Data Model)

Legacy

ERP

Legacy

ERP

Legacy

ERP

productivity optimizations

Central transaction execution

for select processes

shared OLTP / OLAP data

consolidated entity /

management reporting

SAP

ERP Central

Finance

Central Finance as Platform for Non-disruptive Adoption Single Platform for finance transactions, planning, consolidation, and

reporting

Integrated Business Planning

SAP HANA Platform

SAP

BPC

SAP

ERP

Real Time Planning on

ERP data

Built-in ability to use

prediction, simulation,

and analysis

Integrated Planning

Models