RISE with SAP for Utilities

Accelerating Digitalization

January 2022

 
EXTERNAL
Global megatrends and disruptions are reshaping the utilities industry
Accelerating the need for sustainable business model innovation

Global megatrends Global utilities trends

Circular livable Sustainable Mobility

economy cities energy

Changing market Emerging Shift to Security and

dynamics prosumer decarbonization digitalization

The COVID crisis

Reliable asset operational excellence and customer experience at scale

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Utilities pursue 4 strategic priorities
Strategic view Utilities transformations

Head of sales and

CEO CSO CTO CIO Head of asset operations Head of metering customer service Head of field service Head of revenue management
• Revenue growth • Asset availability and uptime • Operational efficiency for • Time to market • Operational efficiency • Revenue leakage
• Profitability • Maintenance costs entire meter-lifecycle mgmt • Fulfillment excellence • Cost and time to serve • Service delivery cost
• Asset efficiency • Safety incidents • High quality and availability of • Total cost to sell and serve • Service experience • Cost of noncompliance
metering data

Enterprise asset
Strategic priorities Metering and markets Customer experience Field service Bill to cash
management

Drive operational
excellence
Core End to End Processes
Achieve regulatory
compliance and security Design to Operate Lead to Cash

Explore new revenue

streams Meter to Cash Contract to
Serve

Build customer intimacy

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SAP point of view: Intelligent utilities companies will lead the way
Strategic view Utilities transformations

Head of sales and

CEO CSO CTO CIO Head of asset operations Head of metering customer service Head of field service Head of revenue management
• Revenue growth • Asset availability and uptime • Operational efficiency for • Time to market • Operational efficiency • Revenue leakage
• Profitability • Maintenance costs entire meter-lifecycle mgmt • Fulfillment excellence • Cost and time to serve • Service delivery cost
• Asset efficiency • Safety incidents • High quality and availability of • Total cost to sell and serve • Service experience • Cost of noncompliance
metering data

Enterprise asset
Strategic priorities Metering and markets Customer experience Field service Bill to cash
management

Drive operational
excellence
The Intelligent Enterprise
Achieve regulatory
compliance and security

Explore new revenue

streams Real world Intelligent Flexible Environmental
awareness decision making Collaboration awareness
Networks
Build customer intimacy

Best practices Next practices Vertical edge

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Example: Driving operational excellence

BEST PRACTICE: Time-based maintenance

Improved electric
Maintenances processes
are based on time-based 34% reliability on intelligent
grid circuits when using
maintenance plans, and
the processes are predictive maintenance
Predefined Manual On-site Second visit Maintenance work
partially automated.
maintenance scheduling asset health required to finalize confirmation at the
plan triggers of work order determination maintenance work next day
work order

NEXT PRACTICE: Asset-health-based maintenance

1.9x More projects delivered
within or below budget

A new enterprise asset-

centric transformation
is supported by an
Increase in the
Asset health prediction
triggers work order
Insight into asset condition
enabling automatic allocation of
Detailed on-site information
and real-time confirmation of
intelligent asset
management system. 20%–50% productivity of
interventions on simple
right resources and spare parts maintenance work projects by optimizing the
allocation of resources
(skills, geography, and so
VERTICAL EDGE: Utility-specific asset management functionality on)

Dissolved Gas Analysis (DGA) Monitoring of Corrosion under Vegetation Management for distribution
of transformer oil Insulation (CUI) and transmission networks

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Optimize and transform: SAP’s Intelligent Enterprise architecture
Optimize with Best Practices Transform with Next Practices
A stable and reliable business An agile and flexible platform for
foundation to run end-to-end innovating quickly in the areas
processes as effectively where differentiation
and efficiently as possible. drives competitive advantage.

BUSINESS NETWORK E-mobility charge

SAP S/4HANA point operations
Utilities

Customer Experience
Complementary non-
(CX) for Utilities
commodity services
ACROSS ALL FUNCTIONS: Design to Operate | Lead to Cash
and products

AIN
BUSINESS PROCESS INTELLIGENCE

EXPERIENCE MANAGEMENT Energy data hubs

Spatial Asset
Management INTELLIGENT SUITE INDUSTRY CLOUD

Field Service
Management
Transform
SUSTAINABILITY MANAGEMENT

BUSINESS TECHNOLOGY PLATFORM

Collaborative asset
insights and operations

SAP DATA CENTER OR HYPERSCALER

SAP Intelligent Suite Applications SAP and Partner Apps

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 However, our customers are faced with multifaceted challenges that are prohibiting
their ability to realize the full potential value the Intelligent Enterprise unlocks

Too many hands to shake &

parties to hold accountable

Transformation path is Multiple and varying SLAs for

not clear application stack components

Aging workforce Customer acting as the

and skilled experts orchestrator, putting solution
hard to secure stack layers together

Often challenging to Diminishing support over time to

create the value help realize anticipated value
case for change

Transformation path
not clear, requiring Long time-to-value
high up-front costs
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 Driving business innovation together

Every enterprise needs to develop new business models to avoid being disrupted, gain efficiencies to fund innovation, and transform
mission-critical systems without business risk. RISE with SAP is the solution.

RISE with SAP is a comprehensive solution with:

 Cloud ERP for every business need
 Industry next practices and extensibility
 Analytics and business process intelligence
 Outcome-driven services from SAP and partners

RISE with SAP is built to fit your needs

RISE with SAP is designed to support your business needs – for your industry, in your geography, for your regulatory requirements
– with SAP responsible for the holistic service-level agreement, cloud operations, and technical support. It includes:

Business process Business platform and Outcome-driven

Cloud ERP Business networks
intelligence analytics services and tools
SAP S/4HANA Cloud Business process SAP Business SAP Business From partners
intelligence starter Technology Platform Network Starter Pack
pack (CPEA credits)

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 Expand business innovation in the utilities industry

Drive More Business Value

A
Rise to every new business opportunity
Leverage industry best and next practices that
On top of the RISE with SAP offering, you can always create new revenue streams and maximize existing
extend business innovation with industry-specific ones, improve assets efficiency, enhance
solutions productivity, and allow for running sustainably
as new business opportunities and requirements appear.

Cloud ERP
SAP S/4HANA
Cloud
Business process
intelligence
Business process
intelligence starter
pack
Business platform
and analytics
SAP Business
Technology
Platform (CPEA
credits)
Business networks

SAP Business
Network Starter
Pack
Outcome-driven
services and tools
From partners +
Mitigate Risk, Reduce IT Cost, and Accelerate
B Time to Value with Cloud Delivery Capabilities

+
Cloud solutions for Gain capabilities that maximize transformation
utilities companies readiness, simplify consumption through
from SAP and partners “as-a-service experience,” help ensure operational
resilience, and reduce overall TCO – from SAP and
partners

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Delivers differentiation with industry best and next practices
and innovations at the vertical edge
Enterprise asset
management
Asset performance and health
Drive operational mgmt.; Vegetation mgmt.
excellence Portfolio management;
Maintenance execution
Health and safety management
Achieve regulatory and compliance
compliance and security
Equipment and tools rental and
lifecycle management
Explore new revenue
streams
Asset collaboration
Build customer intimacy
SAP Asset Strategy and
Performance Management
SAP Predictive Asset Insights
SAP Enterprise Product
Development
Industry SAP Asset Manager
Cloud TeamViewer Frontline Augmented
Reality
Solutions Satellite-Based Infrastructure
Monitoring by LiveEO
Enterprise Health, Safety and
Environment Mgmt. by Sodales
ETM.next
by BearingPoint Business Service
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Metering and markets
Discrete meter reading processing
handling of time series data
Metering analytics
Energy settlement
Sending and receiving of master
and transactional data
SAP Cloud for Energy
SAP Subscription Billing
SAP Market Communication for
Utilities
The Intelligent Suite – SAP S/4HANA Cloud
Business Technology Platform
Customer experience
Intelligent ticket routing
Sales order processing;
sales monitoring and analytics
Preference management
Electromobility
Sales quotation management
Omnichannel customer
experience
Customer engagement
SAP E-Mobility
SAP Self-Service Accelerator
for Utilities by SEW
SAP Subscription Billing
Service Ticket Intelligence, SAP
Service Ticketing
Field service
Performance-based/ use-based
service delivery
AI based scheduling Machine learning in meter reading
integrated service and asset mgmt
Health and
safety management
Multidomain service capabilities
Pay per use services
Subscription and service contract
management
Customer experience Billing mediation and convergent
management
SAP Predictive Maintenance
and Service
SAP Asset Manager
SAP Predictive Asset Insights
A B
Bill to cash
Service and sales contract
management
and billing exceptions
Bill presentment
and payment
Dynamic billing and convergent
invoicing
Subscription contracts;
solution billing
charging
Customer financial insights
SAP E-Mobility
SAP Subscription Billing
SAP Self-Service Accelerator for
Utilities by SEW
10
 Example: How best practices and next practices deliver differentiating value

Utilities – Intelligent Enterprise Asset Management

Predictive Asset
Asset Intelligence Network Resource Scheduling (RSH)
Insights (PAI)

1 2 3 Differentiating
Capabilities Demo

Maintenance Manager
Monitor Network Assets
Service Provider
Support Asset Inspection
Service Scheduler​
Schedule and Level Capacity ​
 Digitally Connect to
Physical Assets
 Asset Health Based
Maintenance
Project Logistics & Asset Maintenance Execution Field Service Management  Utility-Specific Asset
Health Control + Asset Manager (FSM)
Management
Functionality
6 5 4

Head of Operations Field Worker Crew Manager​

Leverage Asset Health Dashboard Perform Inspection Dispatch Resources ​

Capability enabled by Intelligent Suite Industry Cloud  Business Network

1-5% Reduced un-planned downtime or outages* 0.5-3% Reduced asset maintenance cost* 15-40% Improved customer satisfaction*
© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC *Benefits are based on results from early adopters of SAP S/4HANA or conservative outside-in estimates of benefits moving from a traditional ERP system to SAP S/4HANA. 11
 SAP S/4HANA value proposition

Utilities can unlock tremendous value potential by adopting intelligent technologies. SAP can help utilities improve their performance on key value drivers along the four core
transformations. The model approximates the benefits for a utility company with revenue greater than €2 billion and with about 2,000 employees:

Customer engagement & Bill to Cash Metering and market process management

Increase revenue from new 1,5%–4% 1,3 million– Reduce metering cost (smart metering)* 5%–7% 1,4 million–
products/services* 3 million 2 million
Increase revenue from cross-sell or up- 7%–35% 1,3 million– Reduce days sales outstanding* 1%–1.5% 3,6 million–
sell* 6,5 million 5,6 million
Reduce sales cost* 3%–5% 1,5 million– Application Development and 3%–5% 1,4 million–
2,6 million Integration* 2,3 million

Service excellence Intelligent enterprise asset management

Increase service revenue* 10%–12% 0,8 million– Reduce asset maintenance cost* 1,5%–3% 1,1 million–
1 million 3,7 million
Reduce customer churn* 3%–8% 0,8 million– Reduce unplanned downtime or outages* 10%–12% 1 million–
1,8 million 1,4 million
Reduce service and support cost* 4%–10% 0,8 million– Reduce logistics cost* 2%–3% 2,6 million–
2,1 million 4 million

Benefits are based on early adopters of SAP or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA and line-of-business and cloud capabilities. As each enterprise is at a different level of
maturity, our recommendation is to work with you to determine the value proposition for your enterprise. The currency used in all numbers are €.
Source: *SAP benchmarking tool
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 SAP S/4HANA innovations delivering
for each utilities transformation area

Drive shareholder The Top Line The Bottom Line The Green Line Strategic & Transformational
value

Focus on key Sales volume, new business models Cost of energy and services sold, selling general Assets (property, plant, and equipment), Agility, experience, risk, insights, sustainability,
outcomes and administrative (SG&A) expenses receivables, inventory; processes; People CO2 reduction

Value driver* 10%–12% improvement in new product and 5%–30% Increase % of projects on time, budget 5%–15% improvement in overall equipment 1%–3% optimization of capital expenditure
service revenue and scope efficiency 15%–40% higher customer satisfaction
5%–8% lower time to market for new products 5%–30% reduction of EH&S penalties and fines 1,5%–3% reduction in asset maintenance cost
and services

• N/A • Enterprise portfolio and project management • Technical object breakdown analysis • Workload analysis and resource scheduling
Intelligent • Real spend – anomaly detection of expenses • Technical object damage analysis • Maintenance planning overview
enterprise asset • Report and repair malfunction • Manage compliance checks: automatic hit processi
management • Geo-enablement of assets and related operational ac ng and predictive model.
tivities

Metering and • Individual energy and water product offering • Pre-defined kpis • SAP Fiori app for utilities meter reading • Meter to cash for large utilities systems
Key Innovations in SAP S/4HANA

• Real-time execution of energy settlement processe available for the execution of analytic utilities • Resolving exceptions in utilities meter readings • Better monitoring, handling, and validation of
market process s meter-reading data
• Optimized archiving of load profiles • Machine learning for implausible meter reading
management
• Enhanced monitoring of data-exchange tasks

Customer • Improve responsiveness with flexible customer a • Customer behavior insight • Enable automation of rule mining in master data q • Build customer self-services powered by machi
engagement nd partner contract account creation • Billing and invoicing of commodity and non commo uality management ne learning with service ticket intelligence
• New energy products with product simplification dity into a single invoice (ex address verification)
• Immediate billing • Classification of unstructured documents using ma
chine learning
Service • Integration of maintenance plans with service • Revenue recognition for service contracts • Enhanced sales contract management processes f • Increased aggregation capabilities for billing and inv
excellence contracts or utilities oicing of large resellers
• Retroactive creation of a returns purchase order fro • Control key provider contract activities
m an order confirmation

• Dynamic billing (for the pricing of individual
product offering)
Bill to cash • Invoice utilities billing documents with non-utilitie
s billing documents in SAP convergent invoicing
• Pre-defined kpis
available for the execution of analytic utilities
• Creation of a single invoice together with other serv
ices
• Settlement of intercompany invoicing
• SAP Fiori app for utilities billing
• Resolving exceptions in utilities billing and invoicing
• Automation of steps required for setup of billing ma
ster data
• Manage clarification cases resulting from excepti
ons
• Bill to cash for large utilities systems
• Machine learning in billing
• Convergent invoicing for utilities bill-to-cash proces
ses

*Benefits are based on results from early adopters of SAP S/4HANA or are conservative outside-in estimates of the benefits of moving from a traditional ERP system to enhanced SAP S/4HANA with line-of-business and cloud capabilities. As each enterprise is at a different level of
maturity, our recommendation is that you work with SAP to determine the value proposition for your enterprise.
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 A B

offers cloud delivery capabilities that enable the journey to the Intelligent
Enterprise – mitigating risk, reducing cost, and accelerating time to value

Transformation “As-a-service” Operational Predictable,

readiness experience resilience lower TCO

Achieve process Access simpler Leverage SAP Gain from future-fit,

excellence* support model reference architecture flexible pricing

Leverage transformation Leverage Improve infrastructure Achieve

tools and services* periodic updates resilience hyperscaler economics

Integrate and extend digital Simplify contract Achieve Automate

core to accelerate innovation and commercials application-level technical operations
security
* Not exclusive to cloud
Note: See Appendix for details
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 showcases how our customers are ‘realizing’ the value
Impact Areas The Top Line
Key Increased upsell and cross-sell opportunities,
Outcomes increased portfolio of energy services, predictable
and new revenue streams
Realized
What are others ENGIE
“SAP S/4HANA is a key component in our
accomplishing? integration journey and digital transformation
road map for the Latin American region.”
Saul Kempner, Chief Information Officer, Engie
LATAM
MERCURY NEW ZEALAND
“We went through a step change of improving
the processes and making it better for our
people, which ultimately makes it better for our
customers. If you give people the environment
to be their best selves, people will be happier in
their jobs, and that will result in improved
customer satisfaction.”
Daniel Green, Manager of Service Design and
Delivery, Mercury New Zealand Limited
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The Bottom Line
Enabled intelligent and autonomous process,
reduced costs, optimized R&D spend, high cash
conversion cycle efficiency
TRANSMISSORA ALIANCA DE
ENERGIA ELETRICA SA (TAESA)
“Following our growth plan and
operational efficiency, we digitalized our
operations by implementing SAP
S/4HANA. We now have a single source
of truth and a platform ready to support
innovation with new technologies.”
Alessandro Fernandes, CIO, Transmissora
Aliança de Energia Elétrica SA (TAESA)
RETIPIU
“In choosing an intelligent, predictive
maintenance solution, integration with our
core ERP systems was key. With SAP
S/4HANA and SAP Intelligent Asset
Management solutions, we have one
unified system that provides everyone
with the visibility they need to work
efficiently and effectively.”
Massimo De Filippi, Director of Technical and
Information Services and Design, RetiPiù S.r.l.
The Green Line
Optimized environment impact, more resilient
and circular value chain, increased uptime and
asset utilization, reduced waste, increased
compliance
K-WATER
“With SAP S/4HANA, we can create new
value with the water data we collect from our
operations like purification plants, pipe
networks, and dams. We are planning to use
AI and digital twins to create virtual models
that will help us significantly improve water
quality, distribution, and sustainability.”
Sung Mok Lee, Senior Manager, Information
System Management Team, Korea Water
Resources Corporation
Strategic & Transformational
Improved customer satisfaction, improved agility,
reduced business and technology risk, improved
decision-making
FARYS
“With SAP Business Technology Platform,
everything is integrated. Our data is in one
place. It unlocks intelligence, simplifies
innovation, and lowers our total cost of
ownership compared to our peers.”
Inge Opreel, CIO, FARYS
NEDERLANDSE GASUNIE N.V.
“We have completed the transition to
SAP HANA Enterprise Cloud in less than
half a year, from initial idea to
completion. We're taking that experience
with us on our SAP S/4HANA journey.”
Jan Marten Spanjersberg, CIO, N.V.
Nederlandse Gasunie
15
 Vision-to-value engagement model

1 2 3 4

Initialize the Align on vision and Build the value Plan the path Deliver business
transformation desired outcomes case forward value
Provide our POV on the case Align on business and IT Build the case for change and Create transformation Deliver quick adoption and time to
for change in the context of strategy and get buy-in across identify key initiatives with roadmap and define value, and drive continuous
industry and customer needs the organization expected outcomes deployment plan optimization and innovation

• Provide high-level • Articulate business strategy • Conduct discovery workshops • Agree on target end-state • Transition to delivery and
value cases for and required business to uncover business process enterprise architecture, and customer success team
change based on outcomes to underline digital improvement opportunities transformation roadmap • Address enablement, on-
industry ambition • Explore the art of the possible • Define target operating model, boarding, and change
requirements and • Share Intelligent Enterprise and technical migration and management requirements
with technology innovations to
customer needs deployment strategy
cloud vision, and how it enables achieve desired business • Utilize best practices for
• Socialize the the customer transformation outcomes • Validate outcomes, priorities, deployment and project
Vision-to-Value • Set engagement direction and • Baseline current technology and case for change with governance
approach executive sponsors
expected results landscape - capability and TCO • Support customer success,
• Align on scope, resources and assessment on-going value realization
timeline • Develop the case for change and optimization

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Thank You
Appendix 1: SAP S/4HANA Value
Primary Value Drivers improved In Utilities Industry by SAP solutions
The Top Line
Impact Areas
Increased upsell and cross-sell opportunities,
increased portfolio of energy services,
Key Outcomes Realized predictable and new revenue streams
• 10-20% Increase in service
revenue from new business
Primary models
Value Drivers • 1-8% Reduction in time to market
for new products/services
• 5-35% Increase in revenue from
cross-sell/up-sell
• 20-40% Increase in service
contract renewals
• 1-20% Reduction in customer
churn
• 1-5% Reduction in un-planned
downtime or outages
 Increase service revenue
 Reduce time to market for new
Other Key products/services
Value Drivers  Reduce revenue loss due to stock-
outs
 Improve Product Traceability
 Increase revenue growth with better
product personalization
The Bottom Line
Enabled intelligent and autonomous process,
reduced costs, optimized R&D spend, high cash
conversion cycle efficiency
• 1-10% Reduction in service and
support cost
• 0.5-3% Reduction in asset
maintenance cost
• 10-20% Reduction in days sales
outstanding
• 5-50% Reduction in customer
billing, credit and collections cost
• 5-50% Reduction in accounts
receivables management cost
 Improve procurement FTE
productivity
 Reduce Warehousing Cost
 Reduce sales cost
 Reduce inventory carrying cost
• Reduce days in inventory
• Improve days payable outstanding
** based on (a) Contribution to the Impact Areas (b) Solution Business Capabilities provided by S4HANA (with a priority on Incremental
Capabilities as compared to ECC (c) SAP’s view on the Primary Value Drivers that drives Strategic Priorities of this industry
The Green Line Strategic & Transformational
Optimized environment impact, more resilient and Improved customer satisfaction, improved agility,
circular value chain, increased uptime and asset reduced business and technology risk, improved
utilization, reduced waste, increased compliance decision-making
• 3-10% Reduction in carbon  5-30% Increase in % of projects
footprint (lower emissions) on time, budget and scope
• 5-30% Reduction in EH&S  5-25% Improvement in overall
penalties and fines equipment effectiveness
• 5-30% Reduction in lost time  15-40% Improvement in
accident frequency customer satisfaction
 10-20% Increase in employee
engagement
 Improve overall equipment
effectiveness
 Reduce days to close annual books
 Increase financial forecast accuracy
 Increase sales forecast accuracy
 Improve demand forecast accuracy
 enables differentiated business outcomes for Utilities Industry: “Value Lever View”
Value
Areas
The Top Line The Bottom Line The Green Line Strategic & Transformational
Business Increased upsell and cross-sell opportunities, Enabled intelligent and autonomous process, reduced Optimized environment impact, more resilient and Improved customer satisfaction, improved agility,
Outcomes increased portfolio of energy services, predictable and costs, optimized R&D spend, high cash conversion circular value chain, increased uptime and asset reduced business and technology risk, improved
new revenue streams cycle efficiency utilization, reduced waste, increased compliance decision-making
Value Drivers • 10-20% Increase in service revenue from new • 1-10% Reduction in service and support cost • 3-10% Reduction in carbon footprint (lower  5-30% Increase in % of projects on time, budget
business models • 0.5-3% Reduction in asset maintenance cost emissions) and scope
• 1-8% Reduction in time to market for new • 10-20% Reduction in days sales outstanding • 5-30% Reduction in EH&S penalties and fines  5-25% Improvement in overall equipment
products/services • 5-50% Reduction in customer billing, credit and • 5-30% Reduction in lost time accident effectiveness
• 5-35% Increase in revenue from cross-sell/up-sell collections cost frequency  15-40% Improvement in customer satisfaction
• 20-40% Increase in service contract renewals • 5-50% Reduction in accounts receivables  10-20% Increase in employee engagement
• 1-20% Reduction in customer churn management cost
• 1-5% Reduction in un-planned downtime or outages

Project Management Project Management

Drive
Project Logistics Control Project Logistics Control
operational
Project Financials Control
excellence
Management of Change
Intelligent Meter Reading Processing
Strategic Priorities and Key Capabilities

Commercial Project Management Commercial Project Management

Asset Intelligence Network and Collaboration (Equipment Collaboration) with
© 2020 SAP SE or an SAP affiliate company. All rights reserved.

Maintenance Planning & Execution (incl. Geospatial Enablement)

Portfolio Management

Regulatory Meter Inspection and Certification

compliance
Meter Operations: installation, removal, replacement
& security
Maintenance Safety and Permit to Work
Health and Safety Management

Explore new Service Contract Management

Revenue streams Energy Data Management (for time of use pricing)
Convergent Invoicing (for partner settlement) Convergent Invoicing (for partner settlement)
Solution Order Management (incl. Subscription Order)
Sales and Quotation Management for Energy and water

Bill to Cash for Energy 'Prosumers' Bill to Cash for Energy 'Prosumers'

Build customer Solution Billing

intimacy Convergent Invoicing Convergent Invoicing

*Benefits are based on results from early adopters of SAP S/4HANA or are conservative outside-in estimates of the benefits of moving from a traditional ERP system to enhanced SAP S/4HANA with line-of-business and cloud capabilities. As each enterprise is at a different level of maturity, our
recommendation is that you work with SAP to determine the value proposition for your enterprise.
 Industry context for scenario for Utilities
Scenario: Intelligent enterprise asset management
BUSINESS AT A GLANCE

Customer Reference
Distribution Grid CenterPoint Energy Asset
Health Management of the
Distribution Grid

Transmission Station Monitor, Control

& Service Station End Customer

KEY PRODUCTS & CUSTOMERS

Residential

Transmission Vehicles & Tools & Safety, Line & Business

& Distribution Accessories Supplies Construction

KEY PAIN POINTS

Supports Critical Thousands of assets

Expensive Maintenance | High SLA Downtime | High Volume | Worker Safety Priority Business in the field
 Example: Challenges with current practices

Predictive Asset
Asset Intelligence Network Resource Scheduling (RSH)
Insights (PAI)

1 2 3 Key Challenges
• Lack of real-time
Maintenance Manager Service Provider Service Scheduler​ visibility and insights
Delayed alerts and reactive Physical/In-person inspection with heavy No visibility into capacity of work
monitoring leading to asset incidents documentation to provide follow-up leading to poor capacity utilization to take actions
instructions
• Increase in un-planned
downtime or outages
Project Logistics & Asset Maintenance Execution
Field Service Management • Increase in asset
Health Control (FSM)
+ Asset Manager maintenance cost

6 5 4
• Reduction in Customer
Satisfaction
Head of Operations Field Worker Crew Manager​
Labor-intensive process of collecting 2nd on-site visit to perform final maintenance Unable to react to schedule changes and limited 3 rd
metrics across thousands of assets work & provide paper based feedback party crowdsourcing leading to missed SLAs

Capability enabled by Intelligent Suite Industry Cloud  Business Network

Appendix 2: Value Framework
 Offers cloud delivery capabilities that enable the journey to the Intelligent
Enterprise - mitigating risk, reducing cost and accelerating time to value

Transformation “As-a-Service” Operational Predictable,

Readiness Experience Resilience Lower TCO

Achieve Process Access Simpler Leverage SAP Gain from Future-Fit,

Excellence* Support Model Reference Architecture Flexible Pricing

Leverage Transformation Leverage Improve Infrastructure Achieve

Tools & Services* Periodic Updates Resilience Hyperscaler Economics

Integrate and Extend Digital Simplify Contract Achieve Application Automate

Core to Accelerate Innovation & Commercials Level Security Technical Operations

* Not exclusive to cloud

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 “As-a-Service” Operational Predictable,
Transformation Readiness Resilience
Experience Lower TCO

Improve transformation readiness and accelerate innovation

10 – 15% 2 Improved process efficiency

Achieve Process With BPI, identify process bottlenecks,
Excellence design to-be processes, simulate and
achieve significant business improvements 50 – 80% 3 Less cost to manage customizations

Reduce time-to-value for B2B network benefits

10 – 15% 4 Sourcing savings (Ariba Network)

Leverage transformation Reduce complexity of customizations and
tools & services maximize use of standard functionality using Up-to 3% 4 Lower asset maintenance cost (AIN)
SAP tools and services
Up-to 5% 4 Lower logistics cost (LBN)

Up-to 15% 4 Lower days In inventory (LBN)

Integrate and Extend Optimize and extend processes that
Digital Core to accelerate cloud innovations with Business Faster time to market for innovations
Accelerate Innovation1 Technology Platform and Business Networks
within and beyond enterprise boundaries Improved employee engagement with task automation
1
Other LOB bundlers to be introduced across 2021, starting with HXM
2
IDC survey showed 10-15% drop in operating costs
3
SAP customer case studies and experience
4
Improvement range based on SAP’s benchmarking with a model company of $2B in Revenue & 15% margin. Only applies to assets / spend / logistics which flow through the respective SAP systems  
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 Transformation “As-a-Service” Operational Predictable,
“As-a-Service” Resilience
Readiness Experience Lower TCO
Experience

Simplify software consumption and realize a better SaaS experience

Access Simpler One SLA for the full application stack,

Support Model simpler governance and faster issue
20 – 30% 1 Reduced governance costs
resolution

Up-to 98% 2
Reduced downtime

Leverage Periodic SAP managed support packages and

Updates patches. One technical upgrade p.a. for Up-to 3% 3 Operational cost
private cloud and quarterly for public cloud
Up-to 5% 3 Administrative cost

Up-to 1.9x 3 # of processes with visibility

Simplify Contracts One commercial offer and contract for RISE
& Commercials with SAP. SAP and services partner work in
Up-to 7% 3 Complete + On-time shipments
tandem leveraging each partner’s unique
strengths
1
SAP customer case studies and experience
2
Study by IDC on SAP S/4HANA Cloud, private edition
3
The Value of Upgrading ERP: Maintaining Modern Technology (by Aberdeen Group)
© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 26
 Transformation “As-a-Service” Operational
Operational Predictable,
Readiness Experience Resilience
Resilience Lower TCO

Improve operational resilience running on hyperscale infrastructure

Leverage SAP Proprietary SAP reference architecture to Reduced infrastructure

30 - 60% 1
Reference ensure optimal performance and platform overprovisioning
Architecture independence across multi-cloud ecosystem

Up-to 98% 2 Reduced Downtime

Improve Choice of hyperscaler to ensure highly
Infrastructure resilient, global, secure and scalable Cloud
Resilience infrastructure 2.8%
Reduced cybersecurity value-at-risk
of Revenue 3

Reduced SAP application delivery time

Achieve Reduce cybersecurity risk and high overhead
Application-Level costs to address cybersecurity, privacy and
Reduced risk of penalties (e.g. due to GDPR violations)
Security ensure business continuity

1
Bain & Co. - Optimize when migrating to the Cloud
2
IDC TCO study on SAP S/4HANA Cloud
3
Accenture – The cost of cybercrime
© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 27
 Transformation “As-a-Service” Operational Predictable,
Predictable,
Readiness Experience Resilience Lower TCO
Lower TCO

Achieve predictable, lower TCO with pricing & infrastructure operations optimization

Gain from Future- Flexible subscription pricing, better aligned

Reduced TCO
Fit, with future requirements based on simpler
Flexible Pricing metrics (e.g. Full Usage Equivalent)  Reduce IT governance costs
 Reduce infrastructure costs
20% 1
 Reduce IT operational costs
Achieve Reduce infrastructure costs, while  Reduce shelf-ware
Hyperscale leapfrogging complexity and learning curve  Improve IT user productivity
Economics of using a public IaaS / PaaS platform

Reduced 3rd party software & support fees

Automate Better service availability and cost efficient

Technical Operations operations leveraging SAP best practice Faster time-to-market for new capabilities & applications
cloud operations

1
Study by IDC on SAP S/4HANA Cloud, private edition
© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 28
Appendix 3: RISE Framework - Partners
 Business transformation as a service requires our ecosystem
Preconfigured applications and solutions by
partners as repeatable accelerators

Industry cloud
solution from SAP

SAP S/4HANA
Partner Cloud Recurring
innovations and (public or private) application
integrations management
built on SAP services by
BTP partners
Industry solution
SAP Business Partner app 1 from SAP
Technology Flexibility
Platform to choose

+
infrastructure
(SAP BTP) Premier value provider
RISE with
SAP for
Guided industry
SAP journey
Business Business Partner-built
Network Simplified process industry
Starter engagement intelligence Partner app 2 integrations,
Pack (BPI) accelerators,
content, and
SAP Business Business data
Network advisory services
activation by partners
services by that leverage
partners BPI from SAP
Custom code analyzer, Partner-defined industry reference
SAP Readiness Check, SAP Cloud ALM, architecture – solutioning beyond
SAP Learning Hub SAP

Rapid migration and implementation

services by partners
= Ecosystem value add

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀǀ PUBLIC 30

Appendix 4: RISE with SAP for HXM
 lifts, transforms and shifts, unlocking two sources of differentiating value
SAP S/4HANA Cloud
(public or private)

Flexibility to
SAP
choose Enabling Business Value Creation with
infrastructure
Business
Technology
provider A Differentiating Business Capabilities
Platform Premier Value
Guided Journey Industry best and next practices that improve employee
engagement and productivity, create new revenue
Simplified
SAP Engagement streams and maximize existing ones, improve assets
Business
Business
Network
process effeciency, enhance productivity and allow for running
intelligence
Starter sustainably – from SAP and partners
Pack

Custom code analyzer, SAP Readiness Check, App

Lifecycle management, SAP Learning Hub

SAP SuccessFactors
+
solutions

Mitigating Risk, Reducing IT Cost and Accelerating

Structure for
Success
B Time to Value with Cloud Delivery Capabilities
SAP Work Qualtrics
Zone for HR Reskill to Innovate EmployeeXM for IT
Capabilities that maximize transformation readiness,
HXM Operationally simplifies consumption through “as a service
Transform
experience”, ensures operational resilience and reduces
overall TCO – from SAP and partners
Cloud solutions for utilities’ companies
from SAP and partners
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 32
 A B

delivers differentiation with industry best practices while ensuring that your
people are aligned, engaged and properly skilled

Human Experience Management

Enterprise asset
Metering and markets Customer experience Field service Bill to cash
management

Discrete meter reading AI based scheduling

Drive operational Portfolio management;
processing handling of
Sales order processing;
integrated service and asset
Machine learning in meter
excellence Maintenance execution sales monitoring and analytics reading and billing exceptions
time series data management

Achieve regulatory Health and

Energy settlement
Health and
compliance and security safety management safety management

Explore new revenue Subscription and service Subscription contracts;

Asset collaboration Sales quotation management
streams contract management solution billing

Customer experience
Build customer intimacy Customer engagement
management
Customer financial insights

SAP S/4HANA

SAP Business Networks

SAP SuccessFactors

© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 33

 Example: How best practices and next practices deliver differentiating value and
improved employee experience and productivity with SAP HXM
Utilities – Intelligent Enterprise Asset Management
I use mobile workflows to I use self services to My user feedback makes for a I access all my tasks on my
SAP HXM
manage my agile team adapt my holiday plans great IT Solution experience personal workspace

Predictive Asset
Asset Intelligence Network Resource Scheduling (RSH)
Insights (PAI)

1 2 3
Differentiating
Capabilities
Maintenance Manager Service Provider Service Scheduler​
Monitor Network Assets Support Asset Inspection Schedule and level capacity ​  Digitally Connect to
Physical Assets
 Asset Health Based
Maintenance

Project Logistics & Asset Maintenance Execution

Field Service Management  Utility-Specific Asset
(FSM)
Health Control + Asset Manager Management
Functionality

6 5
4

Crew Manager​
+ Aligned, Skilled and
Engaged People

Head of Operations Field Worker Dispatch Resources ​

Leverage Asset Health Dashboard Perform Inspection

My finance data ensures I flexibly record my I keep up to date I compile my crews based
accurate payroll dynamic working time with mobile learning on competencies

Capability enabled by Intelligent Suite Industry Cloud  Business Network SAP HXM Solutions

1-5% Reduced Un-Planned Downtime or Outages* 0.5-3% Reduced Asset Maintenance Cost* 15-40% Improved Customer Satisfaction*
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 34
Access the RISE with SAP for HXM – L1 Presentation *Benefits are based on results from early adopters of SAP S/4HANA or conservative outside-in estimates of benefits moving from a traditional ERP system to SAP S/4HANA.
 enables differentiated business outcomes that maximize shareholder value
through SAP’s industry best and next practices
The Top Line
Increased upsell and cross-sell opportunities,
increased portfolio of energy services,
predictable and new revenue streams
• 10%-25% improvement in time to full
productivity of new hires
• 3%-5% improvement in learner effectiveness
• Up to 60% improvement in faster time to
market
• 3%-5% improvement in Learner Effectiveness
• 3%-40% reduction in employee manual
transaction effort
© 2021 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
A B
The Bottom Line The Green Line Strategic & Transformational
Enabled intelligent and autonomous process, Optimized environment impact, more Improved customer satisfaction, improved agility,
reduced costs, optimized R&D spend, high cash resilient and circular value chain, increased reduced business and technology risk, improved
conversion cycle efficiency uptime and asset utilization, reduced waste, decision-making
increased compliance
• 10%-45% reduction in manual transaction and • 70%-80% reduction in HXM localization cost • 12%-58% improvement in employee engagement
HR administration effort • Drive sustainability with paperless digital • Average 15% increase in IT project execution
• 3%-20% reduction in manager time on learning • 10%-50% increase in employee experience
employee administration • 50% reduction in ongoing localization cost management program efficiency
• 10%-25% reduction in HR FTE time on • Drive sustainability with digital paystubs • 5%-20% increase in employee technology
functional and ad-hoc reporting & analysis effectiveness
• 2%-13% reduction in employee turnover • Reduce IT costs related to building and maintaining
• 1%-10% reduction in employee support cost integrations
• 10%-40% reduction in cost of training delivery
• 20%-50% improvement in training capacity and
upskill faster
• 10%-30% reduction in content development and
maintenance effort
• 10%-25% improvement in payroll management
function efficiency
• 50%-70% improvement in time tracking and
schedule management function efficiency
• 25%-50% reduction in paid time-off errors
• 15%-53% reduction in leave liability balance
• 30%-71% reduction in manager time on time-
keeping and scheduling activities
• 0.5%-3% reduction in payroll time inflation
• 5%-20% reduction in controllable overtime
expense / payments
• 0.5%-2% improvement in payroll accuracy
Note: Benefits are conservative outside-in estimates of the benefits of moving from a traditional ERP system to enhanced SAP S/4HANA with line-of-business and cloud capabilities. As each enterprise is at a different level of maturity, our 35
recommendation is that you work with SAP to determine the value case for your enterprise
Appendix 5: Additional industry specific
slides
 The utilities market is changing fundamentally
Market dynamics are changing.
New rules are altering the traditional utilities
market while breaking down entry barriers
for new players.
BUILD
CUSTOMER
INTIMACY
• With prosumers becoming more aware and
involved in energy issues, utilities must capitalise
on the broadened scope of customer interaction.
• Engage with customers through an omni-channel
digital connection, while generating insights to
make informed decisions.
• Leverage data insights to enable anticipation and
rapid response to customers’ changing wants and
needs.
• Transform from commodity vendor to an energy
advisor
• Collaborate with consumers and home owners and
businesses on sustainability investments and
programs  products and services
© 2022 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC
Prosumers are emerging.
Generating energy locally, prosumers are
decentralising the industry. As such, power
supply increases in volatility and affordability.
In order to remain competitive and innovative in this dynamic digital industry,
Utilities will have to excel in these four aspects.
EXPLORE
+ SUSTAINABLE
REVENUE STREAMS
• Reliance on large-scale generation is reduced
with new generation sources, affordable energy,
and the reduced marginal cost of renewables.
• Gain a greater share of the customer’s spend by
personalising marketing plans to target the
exponential consumption growth and consumer
demand.
• Empower new, refreshed value propositions and
service offerings.
• Create energy related products and installation
services (e.g., smart thermostats, EV chargers,
solar panels) marketplaces.
• Offer sustainable, low carbon and transparent
Focus is shifting to decarbonization.
Rapidly growing demand for energy calls for
a burgeoning need to adopt renewable,
sustainable energy sources.
REGULATORY
+ COMPLIANCE &
SECURITY
Regulatory Compliance
• Ensure full auditability of processes, holistic
end to end business reporting and KPIs
available for local regulators.
• Streamline regulator communication and
processes
• Develop solid rock regulatory cases
• Lead a smart and engaged workforce to
accelerate growth and innovation aligned with
the local regulatory priorities
Data Security
• Data Privacy Support GDPR, CCPA and other
privacy regulations.
Digitalization is threatening security.
Rising connectivity through digitalization, and
proliferation of decentralized energy resources
requires holistic and complex Energy
Networks.
DRIVE
+ OPERATIONAL
EXCELLENCE
Efficiency
• Synchronise demand-side management to the
smart operation of assets to minimize waste
and expensive practices.
• Use analytics to drive the translating strategic
and excellent operations into cost savings
through the supply chain.
• Increase self-service capabilities and the use of
AI to decrease service costs
Reliability
• Introduce flexibility and resilience alongside a
commitment to minimize cyber insecurity.
37
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