Focus on Operation Excellence in the Context of Low Oil Price:

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1 Focus on Operation Excellence in the Context of Low Oil Price: Technology Innovations Enabling Business Transformation Hisham Gouda Sr. Director, Oil & Gas Industry

2 Legal Disclaimer The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation and SAP's strategy and possible future developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP s willful misconduct or gross negligence. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially 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 SAP SE or an SAP affiliate company. All rights reserved. Public 2

3 A matter of perspective $180 $160 $140 $120 $100 $80 $60 $40 Historical Forecast Low High $20 $0 150 Jan-85 Jan-90 Jan-95 Jan-00 Jan-05 Jan-10 Jan-15 Jan-20 Jan-25 Jan-30 Jan-35 Jan Source: Energy Information Administration 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 4

Some factors Disciplined investment/cash flow Cost control Customer focus License

6 Success = resilience re sil ience (noun) \ri-ˈzil-yən(t)s\ 1. the capability of a strained body to recover its size and shape after deformation caused especially by compressive stress 2. an ability to recover from or adjust easily to misfortune or change 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 7

7 Value of transformation Resilient Oilfield with Mash-Ups Digital Operations Integrated Operations Resilient Operations Maximize ROCE Profitability Based Production Fully Aware Production Optimizatio n Resilient Oilfield Asset Modeling Real-time Drilling Remote Operations Management Operationalized Asset Intelligence Informed Drilling Delivery Logistics Production Optimization Asset Integrity Remote Monitoring Predictive Asset Intelligence Mobility Cloud Unconventional/ Complex Drilling Big Data & Analytics Safety Aware Asset Surveillanc e Transport Optimization Digital Oilfield Shared High Frequency Drilling Data Now Time Horizon Enhanced Scheduling 5 Y 8 ROCE = return on capital employed IDC Visit us at IDC.com and follow us on 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 8

8 Resilience comes from simplicity User experience Engineering/ procurement Upstream operations Downstream operations Maintenance/ EH&S Applications Human resources Analytics Finance SAP S/4HANA 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 9

9 Our connected future Connected drilling Connected refining Connected fuels Connected oilfields Connected bulk logistics Connected cars Connected projects Connected workforce 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 10

Complexity A resilient platform and path to

Run Simple Customers Partners SAP SAP S/4HANA

10 Complexity A resilient platform and path to simplicity User experience Grow and innovate Business Path to simplicity Technology Applications Engineering/ procurement Upstream operations Downstream operations Human resources Finance Maintenance/ EH&S Analytics Run Simple Customers Partners SAP SAP S/4HANA 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 11

11 An integrated & focused business process model Engineering/ procurement Upstream operations Downstream operations Maintenance/ EH&S Human resources Finance 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 12

12 An integrated & focused business process model Capital and Effectiveness Integrated Digital Oilfield Operations Hydrocarbon Supply Chain Operational Integrity Capital Planning Portfolio and Project Management Strategic Sourcing and Supplier Management Procure to Pay and Business Network Hydrocarbon Production Management Hydrocarbon Revenue Management Field Logistics Hydrocarbon Supply and Distribution Hydrocarbon Processing Visibility Commercial Sales and Marketing Secondary Distribution and Fuels Retailing Convenience Retailing Risk Analysis and Governance Workforce Competency Asset Integrity Environment, Health, and Safety Enterprise Information Management Data Architecture and Integration Information Governance Content Management Information Archival Human Resources Core Human Resources and Payroll Talent Management Time and Attendance Management Workforce Planning and Analytics Finance Financial Planning and Analysis Accounting and Financial Close Treasury and Financial Risk Management Collaborative Finance Operations Enterprise Risk and Compliance Management Platform and Technology Enterprise Technology Analytics Technology Mobile Technology In-Memory Technology 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 13

Focusing on Production 2015 SAP SE or an

25 Improved data flows and analytics can statistically improve production rates by 5-15% depending on data availability Business case for improving data flows & analytics Improvement for gas-producing assets 1 Improvement for liquids-producing assets 1 Monthly Production Monthly Production Client Examples 15% uplift via improved data flows & analysis Actual production Arps forecast 5% uplift via improved data flows & analysis Actual production Arps forecast Month Month One operator generated more than $1.0 bn in shareholder value from improved information processing across its asset base for an investment of only $50 mn! Note 1: These results were for matured oil & gas fields in the United States and Canada and leveraged existing SCADA applications in the field; differences in results between gas and liquids-producing assets is largely explained by differences in data collection methods typically employed across North America. Source: A.T. Kearney 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 26

Focusing on Uptime Search Michael Smith STO Project: 300000033 STO Project: Refinery STO2015 80.

26 Focusing on Uptime Search Michael Smith STO Project: STO Project: Refinery STO M USD Project ID: Start: 21 May 2015 Project Manager: Kate Jacob End: 30 Jun 2015 Project Structure Next Milestone: STO Scope Status: In Preparation STO Work Orders STO Work Packages Scope Challenge 11 Milestones 342 Scope Items 4809 Work Orders 300 Work Packages Project Budget Sanctioned to Date Cumulative Totals Expenses ( M USD) Milestone Trend Project Progress 85MUS D 3.5 Actual and Target % 2015 SAP SE or an SAP affiliate company. All rights reserved. 27

Michael Smith STO Project: 300000033 Planning & Definition Execution Evaluation Preparation 95% 40% 0% 0% My Activities Activity Sort by Due Date Status Due HL Scope Sign Off Agreement on High Level

27 Michael Smith STO Project: Planning & Definition Execution Evaluation Preparation 95% 40% 0% 0% My Activities Activity Sort by Due Date Status Due HL Scope Sign Off Agreement on High Level Scope among all stakeholders Prepare Detailed Scope Prepare detailed scope in collaboration Mark Brown Mark Brown In Process Not Started Long lead materials & services Prepare list of long lead materials & services Armin Schwarz Not Started Order long lead materials & services Place orders for procurement Armin Schwarz Not Started Prepare for scope challenge Setup the scope challenge meeting and invite stakeholders and voting members Mark Brown Not Started 2015 SAP SE or an SAP affiliate company. All rights reserved. 28

28 Michael Smith Refinery STO 2015 In Scoping Phase Start Date: End Date: Project Manager: 28JUNE JUNE2015 Kate Jacob 4 Equipment 2 Functional Locations Equipment no Description STO Owner Added on Edit Remove Select Motor XYZ 08/31/ Turbine ABC 12/10/ Tanker MNS 07/31/ Super Motor JKL 09/20/ SAP SE or an SAP affiliate company. All rights reserved. 29

29 Michael Smith Equipment Details Search Equipment Plant 0001 Equipment Plant 0001 Functional Location IN-BLR-03 Equipment Plant 0002 Equipment Plant 0003 Workcenter: Person responsible Status Address: Company code Cost center: Mechanik Available Plant 2A Equipment Add to Scope Maintain Work Item Plant 1000 A 2015 SAP SE or an SAP affiliate company. All rights reserved. 30

30 Michael Smith Work Items of Equipment Status Scope Item Plant Open ACME Work Item Reset Search Work Items (4) Work Item Description Phase Offset Account 0001 Before STO Preparation 0002 During STO STO 0003 After STO POST 0004 General activities Cleaning 2015 SAP SE or an SAP affiliate company. All rights reserved. 32

31 Michael Smith Operations of Work Items 0001 of Equipment Status Scope Item Plant Open ACME Operation Reset Search Operations (4) Operation No Task list Operation description Control Key Workcenter Offset Account Isolate the equipment PM Scaffolding PM Erection PM Remove scaffolding PM SAP SE or an SAP affiliate company. All rights reserved. 33

32 Overview of SAP road map for Oil & Gas Road map highlights Recent innovations Integrated financial planning SAP Fiori apps dashboards for CFOs SAP Upstream Operations Management application enhancements SAP Joint Venture Accounting application optimized to run on the SAP HANA platform Transactional availability for remote sites Retail fuel network operations SAP solutions for customer engagement and commerce (SAP Cloud for Customer solution) SAP Master Data Governance application, enterprise asset management extension by Utopia Usability improvements in SAP Enterprise Asset Management Planned innovations Ariba Network enhancements Fieldglass/Ariba software integration SAP Production and Revenue Accounting enhancements (SAP HANA platform optimization) SAP Upstream Operations Management application enhancements (forecasting and revenue integration) Traders and schedulers workbench enhancements (SAP HANA optimizations, SAP Fiori) Natural gas transmission Further Enhancements for SAP Predictive Maintenance and Service solution Risk assessment improvements to SAP Environment, Health, and Safety Management Future direction Total workforce creation of integrated solution to manage end-to-end workforce lifecycle for both contingent and own labor Simplified project management and portfolio management in the cloud Managed cloud for upstream operations management Global revenue accounting Managed cloud for downstream Continue downstream transformation (for example, SAP HANA optimizations, simplifications) Using predictive and real-time analytics to improve safety and risk management Collaboration in the cloud for asset information 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 34

33 Overview of SAP road map for Oil & Gas Road map highlights Recent innovations Recent innovations Integrated financial planning SAP Fiori apps dashboards for CFOs Usability improvements in SAP Enterprise Asset Management Planned innovations Ariba Network enhancements Integrated financial planning Fieldglass/Ariba software integration SAP Upstream Operations Management application SAP Fiori enhancements apps dashboards for CFOs SAP Production and Revenue Accounting enhancements (SAP HANA platform SAP Joint Upstream Venture Accounting Operations Management optimization) application enhancements application optimized to run on the SAP SAP Joint Venture Accounting application HANA platform SAP Upstream optimized Operations to runmanagement on the SAP Transactional HANA platform application enhancements (forecasting availability for remote sites and revenue integration) Retail Transactional fuel network availability operations for remote sites Traders and schedulers workbench SAP Retail solutions fuel network for customer operations engagement enhancements (SAP HANA optimizations, and commerce (SAP Cloud for Customer SAP Fiori) solution) SAP solutions for customer engagement and commerce (SAP Cloud SAP for Customer Master Data solution) Governance Natural gas transmission application, SAP Master enterprise Data asset Governance application, Further Enhancements enterprise asset for SAP Predictive extension by Utopia management extension by Utopia Maintenance and Service solution Risk assessment improvements to SAP Environment, Health, and Safety Management Usability improvements in SAP Enterprise Asset Management Future direction Total workforce creation of integrated solution to manage end-to-end workforce lifecycle for both contingent and own labor Simplified project management and portfolio management in the cloud Managed cloud for upstream operations management Global revenue accounting Managed cloud for downstream Continue downstream transformation (for example, SAP HANA optimizations, simplifications) Using predictive and real-time analytics to improve safety and risk management Collaboration in the cloud for asset information 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 35

Overview of SAP road map for Oil & Gas Road map highlights Recent innovations Integrated financial planning SAP Fiori apps dashboards for CFOs SAP Upstream Operations Management application

34 Overview of SAP road map for Oil & Gas Road map highlights Recent innovations Integrated financial planning SAP Fiori apps dashboards for CFOs SAP Upstream Operations Management application enhancements SAP Joint Venture Accounting application optimized to run on the SAP HANA platform Transactional availability for remote sites Retail fuel network operations SAP solutions for customer engagement and commerce (SAP Cloud for Customer solution) SAP Master Data Governance application, enterprise asset management extension by Utopia Usability improvements in SAP Enterprise Asset Management Planned innovations Planned innovations Ariba Network enhancements Ariba Network enhancements Fieldglass/Ariba software integration SAP Production and Revenue Accounting enhancements (SAP HANA platform optimization) Fieldglass/Ariba software integration SAP Upstream Operations Management application enhancements (forecasting and revenue integration) Traders and schedulers workbench enhancements (SAP HANA optimizations, SAP Fiori) Natural gas transmission Further Enhancements for SAP Predictive Maintenance and Service solution Risk assessment improvements to SAP Environment, Health, and Safety Management Future direction Total workforce creation of integrated solution to manage end-to-end workforce lifecycle for both contingent and own labor Simplified project management and portfolio management in the cloud SAP Production and Revenue Accounting enhancements (SAP HANA platform optimization) SAP Upstream Operations Management application enhancements (forecasting and revenue integration ) Traders and schedulers workbench enhancements (SAP HANA optimizations, SAP Fiori) Natural gas transmission Managed cloud for upstream operations management Global revenue accounting Managed cloud for downstream Further Enhancements for SAP Predictive Maintenance and Service Risk assessment improvements to SAP Environment, Health, and Safety Management Continue downstream transformation (for example, SAP HANA optimizations, simplifications) Using predictive and real-time analytics to improve safety and risk management Collaboration in the cloud for asset information 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 36

35 Overview of SAP road map for Oil & Gas Road map highlights Recent innovations Integrated financial planning Ariba Network enhancements Total workforce creation of integrated SAP Fiori apps dashboards for CFOs solution to manage end-to-end workforce Total Fieldglass/Ariba workforce software creation integration of integrated solution lifecycle for to both manage contingent end-to-end and own labor SAP Upstream Operations Management workforce SAP Production lifecycle and for Revenue both contingent Accounting and own labor application enhancements Simplified project management and enhancements (SAP HANA platform SAP Joint Venture Accounting Simplified optimization) project management and portfolio management in in the the cloud cloud application optimized to run on the SAP HANA platform Managed SAP Upstream cloud Operations for upstream Management operations Managed management cloud for upstream operations management application enhancements (forecasting Transactional availability for remote sites Global and revenue revenue integration) accounting Global revenue accounting Retail fuel network operations Managed Traders and cloud schedulers for downstream workbench Managed cloud for downstream SAP solutions for customer engagement enhancements (SAP HANA optimizations, and commerce (SAP Cloud for Customer Continue Continue downstream transformation (for SAP Fiori) downstream transformation (for example, SAP HANA solution) example, SAP HANA optimizations, optimizations, simplifications) SAP Master Data Governance Natural gas transmission simplifications) application, enterprise asset Connected Further Enhancements car for SAP Predictive Using predictive and real-time analytics to management extension by Utopia Maintenance and Service solution improve safety and risk management Usability improvements in SAP Enterprise Asset Management Planned innovations Future direction Risk assessment improvements to SAP Environment, Health, and Safety Management Future direction Using predictive and real-time analytics to improve safety and risk management Collaboration in the cloud for asset information Collaboration in the cloud for asset information 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 37

Product Roadmap - SAP S/4HANA for Oil & Gas 1 Build

incl. Oil & Gas solutions SAP Simple Finance 1.

one) PRA optimizations TSW optimizations (wave one) SAP

downstream) Further core simplifications Further

RECENT PLANNED FUTURE 2015 SAP SE or an SAP affiliate

This presentation and SAP s strategy and possible future

at any time for any reason without notice.

either express or implied, including but not limited to, the

36 Product Roadmap - SAP S/4HANA for Oil & Gas 1 Build Foundation 2 Simplify 3 Innovate and Optimize Suite on HANA incl. Oil & Gas solutions SAP Simple Finance 1.0 w/o JVA SAP Simple Finance 1503 With JVA enablement (wave one) PRA optimizations TSW optimizations (wave one) SAP Simple Logistics with Oil & Gas solutions (upstream & downstream) Further core simplifications Further optimizations & simplifications for Oil & Gas solutions RECENT PLANNED FUTURE 2015 SAP SE or an SAP affiliate company. All rights reserved. This presentation and SAP s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 38

37 Customer Path to Success with S/4HANA Fieldglass Ariba SuccessFactors SAP Cloud Solutions Cloud for Customer SAP S/4HANA managed cloud SAP S/4HANA public cloud SAP HANA Cloud Platform SAP Suite on HANA SAP S/4HANA with Simple Finance SAP S/4HANA on-premises Build Foundation Simplify Innovate and Optimize 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 39

38 Time to value + Max days Business Release or Pain and suffering or Peace of mind Traditional approach - Provides for quick time to value Maintains momentum and enthusiasm 2015 SAP SE or an SAP affiliate company. All rights reserved. Public 40

39 Thank you جزيال شكرا Contact information: هشام جودة / Gouda Hisham Sr. Solution Manager for O&G Industry Business Unit Hisham.gouda@sap.com 2015 SAP SE or an SAP affiliate company. All rights reserved.

SAP S/4HANA for Product Compliance Solution Overview and Road Map

SAP S/4HANA for Product Compliance Solution Overview and Road Map Dr. Rüdiger Kreuzholz, SAP December 08, 2017 Legal disclaimer The information in this presentation is confidential and proprietary to SAP