Active SAP License Management @ hannover re

Dr. Uwe Vehlies ([email protected]) Senior IT Coordinator

ITAM 2017 Copenhagen, 22 June 2017 Agenda

01 – 05 | Key facts about hannover re 06 – 08 | hannover re's SAP CCOE 09 – 10 | SAP licenses at hannover re 11 – 13 | SAP license management at hannover re 14 | Conclusion from procedure at hannover re Key facts about hannover re Key facts about about hannover hannover re re hannover re's SAP CCOE SAP licenses at hannover re SAP lic.mgmt. @ HR Conclusion Key facts about hannover re

Today Majority shareholder: 50.2% held by AG* 18 Feb 2004 Second Public Offering More than 100 subsidiaries, branches and representative offices worldwide

30 Nov 1994 Total staff of roughly 2,500 employees Initial Public Offering

More than 5,000 clients in about 1990 150 countries Life & Health as a strategic growth segment

1966  Foundation by HDI as a subsidiary  Property & Casualty reinsurance

* Majority shareholder HDI V.a.G.

1 Key facts about about hannover hannover re re hannover re's SAP CCOE SAP licenses at hannover re SAP lic.mgmt. @ HR Conclusion From in-house reinsurer to global player >100 subsidiaries, branches/representative offices in ~20 countries

2009: Opening of an office in Shanghai China

2007: Branches and representative offices in Brazil, Colombia, Korea and Shanghai

2006: Hannover Re Takaful B.S.C., Bahrain

2001: Hannover Re (Bermuda) Ltd., Bermuda

2000: Clarendon Insurance Group, USA

1997: Selected portfolios of Skandia International Insurance Company (locations in France, Great Britain, Mexico, Sweden, Spain)

1996: E+S Rückversicherung AG,

1996: Hannover Rück SE Malaysian Branch, Malaysia

1992: Hannover Reinsurance (Ireland) Ltd., Ireland

1990: Hamburger Internationale Rückversicherungs-AG

1990: Reassurance Company of Hannover, USA (today: Hannover Life Reassurance Company of America)

1981: Hollandia-Group; South Africa (today: Hannover Reinsurance Group Africa)

1980: Hannover Rück SE Canadian Branch, Canada

1979: International Insurance Company of Hannover, Great Britain

2 Key facts about about hannover hannover re re hannover re's SAP CCOE SAP licenses at hannover re SAP lic.mgmt. @ HR Conclusion We are among the top reinsurers in the world

Premium ranking 2014 in m. USD Rank Group Country GWP NPW 1 DE 39,035 37,7611) 2 CH 33,276 31,640 3 Hannover Re DE 17,457 15,1001) 4 Inc. US 14,919 14,919 5 SCOR FR 13,756 12,324 6 Lloyd's2) UK 13,199 10,416 7 RGA US 9,118 n.a. 8 CN 8,373 7,857 9 PartnerRe BM 5,932 5,720 10 Everest Re BM 5,749 5,257 11 Korean Re KR 5,461 3,582 12 Great West Lifeco CA 3,916 3,809 13 Transatlantic Holdings US 3,600 3,410 14 General Insurance Corporation of India IN 2,428 2,216 15 RE ES 2,255 2,011 For further information please see A.M. Best “Best’s Review” (September 2015) 1) Net premium earned 2) Reinsurance only n.a. = not available at time of publication

3 Key facts about about hannover hannover re re hannover re's SAP CCOE SAP licenses at hannover re SAP lic.mgmt. @ HR Conclusion A superior and highly profitable reinsurer ... Hannover Re's business case

Top rating (S&P: AA-) ensures attractive new business

Strong market positioning – one of the leading reinsurers worldwide

Generates noticeably higher profitability on 5-year average in comparison with our peer competitors

Lean structures which lead to the lowest administrative expense ratio compared to our peer group

De-risking and diversification measures taken to lower earnings volatility aiming to consistently produce attractive dividends

Effective cycle management, selective and disciplined underwriting in Property & Casualty reinsurance

Increasing profitability of our countercyclical Life & Health business

... with a somewhat different approach

4 Key facts about about hannover hannover re re hannover re's SAP CCOE SAP licenses at hannover re SAP lic.mgmt. @ HR Conclusion Present on all continents

Europe Spain Ireland United Kingdom France Germany Italy Sweden The Americas Madrid Dublin London Paris Hannover Milan Stockholm Asia Canada Bahrain Toronto Manama

South Korea USA Seoul Charlotte Chicago Japan Denver Tokyo New York Orlando Taiwan Taipei Bermuda Hamilton China Hong Kong Mexico Shanghai Mexico City India Colombia Mumbai Bogotá Africa Australia Malaysia Kuala Lumpur Brazil South Africa Australia Rio de Janeiro Johannesburg Sydney

Property & Casualty reinsurance Life & Health reinsurance Property & Casualty and Life & Health reinsurance

5 hannover re's SAP CCOE Key facts about hannover re hannoverhannover re's SAPSAP CCOECCOE SAP licenses at hannover re SAP lic.mgmt. @ HR Conclusion The SAP CCOE organization at hannover re

 Responsibilities shared over collaborating teams in the IT organization • Aligned to international acting Hannover Re Group the CCOE is the channelling and structuring contact to SAP • Adjusted to the IT requirements of a reinsurance company the CCOE acts centrally from Hannover in close cooperation with the international IT Supply Units

 Several topic oriented „direct“ contact channels to SAP and other organizations for example DSAG and RISAG(2) • SAP Basis runs SAP Solution Manager and connects via SAP Support Portal • Business Solutions department with deep knowledge in SAP modules influences (specific) further development via RISAG • Support Advisor as overarching contact at SAP due to PSLE-contract

 Primary Certification since 2004, Best CCOE of the Year Bronze Winner in 2015 (1) • See also „CCOE Best Practice“ in SAP Support Portal (CCOE page) (1)

(1) S-User required, German version 6 (2) ReInSurance ArbeitsGruppe (SAP User Group Reinsurance) Key facts about hannover re hannoverhannover re's SAPSAP CCOECCOE SAP licenses at hannover re SAP lic.mgmt. @ HR Conclusion The SAP CCOE organization at hannover re Core competence SAP license management

 Core task in the CCOE among other is license management for SAP • About 2000 SAP User in contract (up to 800 parallel active user in core system) • Different types of user licenses for SAP ERP, BO, B1, and Subscriptions • PSLE-contract together with talanx, but independently performed licence measurement

 Contact to SAP through different channels • SAP Account Manager (first contact) • SAP Consulting Services (mainly for CCOE recertification) • SAP Support Advisor (provided due to PSLE as central support contact)

 DSAG, other independent customer groups • DSAG work groups and contacts in respect to licenses and price list (for DSAG member) • Contact to Third-Parties (support tools in the area of license measurement) • Networking at conferences etc.

7 Key facts about hannover re hannoverhannover re's SAPSAP CCOECCOE SAP licenses at hannover re SAP lic.mgmt. @ HR Conclusion The SAP CCOE organization at hannover re System measurement, license auditing, contract management

 License management • Yearly SAP license auditing procedure in September • Regular license measurement established for own purpose as “permanent license status” • See also „CCOE Best Practice“ in SAP Support Portal (CCOE page) (1) • Since 2015 license measurement in ERP-systems supported by tool (samQ) for user classification and grouping of user between systems • Know-how in SAP license structure is important for interpretation of measurement results and for keeping control over license cost (maintenance)

 Contract management • Merge of different contracts (over the years) − SAP ERP, SAP BO (Consolidation of SAP BO contracts), SAP B1, Success-Factors, SAP HEC, … • Participation in DSAG Work Group (DSAG AK CCC / Service & Support) • Adjusted (later) purchases aligned to realistic need of licenses

8 SAP licenses at hannover re Key facts about hannover re hannover re's SAP CCOE SAPSAP licenses licenses at hannover re re SAP lic.mgmt. @ HR Conclusion SAP license life cycle of (later) purchase Interrelation of single contracts in respect to licenses

Contract 2004 Contract 2008 Contr. 2009 Contract 2011 Contract 2012 2014/15 Contract 2015 Contract 2016 Developer x Developer Professional User Professional User Professional User Automated x Professional User x Professional User xx Limited Professional Limited Professional Limited Professional ERP User user classifi- Employee User Employee User Employee User cation with x Employee User x Employee User Hierachy samQ xxx ESS xxx ESS xxx NetWeaver Found- dation for 3rd-Party x Platform User

Biz Expert Upgr.User Other x Biz Expert Upgr.User

Payroll Processing Payroll Processing Contract 2012 Engines etc. Payroll Processing Contracts BA&T SAP BO 2016 Engines (industry spec.) Edge Plan.&Cons. - RI Insurance Basissystem Contract 2013 TDMS - RI Insurance RM non life f. MS ILM (partly) - Collection and Disbursement BA&T SAP Disclosure Mgt.

SAP App. Biz Analytics Prof. 2017/18 Add 2017/18 and Reconfigure SAP (BO) Fin.Cons. BO User Combination Contract 2013 SAP App. Biz Analytics Prof. BA&T SAP BO BI Suite (user) BA&T SAP BO BI Suite Old BO contracts [Transfer from SBOP to SAP] (User)

• New projects and additional user Contract 2012 B1 Professional User B1 to be taken into account for license B1 Limited CRM User conform planning of later purchases B1 Software Development Kit before performing license auditing procedure Future Contracts

• Each contract with updated “General Terms and Conditions” Subscriptions / (“quarterly updated price list”) Hana / HEC) ???

9 Key facts about hannover re hannover re's SAP CCOE SAPSAP licenses licenses at hannover re re SAP lic.mgmt. @ HR Conclusion Controlling of SAP license cost by adaptation to usage and support by tool

Higher priced Compliant user licences based Inaccurate # of users growing on real usage estimation lead to of required Higher priced levelled ratio user count user … by projects … Basis for Lower priced planning For being Tool support (samQ) user of (later) license compliant for user classification Lower priced purchases higher priced users user during measurement preferred and also based on usage more than needed provides more accuracy

Up-Front license cost too high, later purchase on levelled ratio at lower cost (yearly maintenance cost follows…, at lower level)

10 SAP license management at hannover re Key facts about hannover re hannover re's SAP CCOE SAP licenses at hannover re SAPSAP lic.mgmt.lic.mgmt. @@ HRHR Conclusion License measurement for SAP Permanent status with yearly reporting date

Preparation of license audit with Per reference date (e.g. quarterly) manually automated Classification before LAW consolidation of licence status (2)

# Developer # Professional User Consolidated P03 P03 LAW ERP User ERP User # Limited Professional measurement Hierarchy PH1 Hierarchy PH1 Result # Employee User result for transfer IHP IHP # ESS-User to SAP Contract (partly per LAW) Other and License # Biz Expert Upgr. User Know How

P03 # Payroll Processing Since 2014/15 Engines USMM- PH1 # BA&T SAP BO Edge P&C automated User etc. Reports IHP # BA&T SAP Disclosure Mgt.

Classification Classification

Consolidation and and Consolidation

Validation in Excel Excel inValidation Manually performed Manually

USMM Download USMM (daily current) on basis of DM # SAP App. Biz Analytics Prof. used Download in manual effort BO User FC # SAP App. Biz Analytics Prof.

transactions Combination Excel list # SAP BO BI Suite (User) ontract

of person days IH c Validation Validation for each (samQ) measurement # B1 Professional U overall regarding B1 B1 Download # B1 Limited CRM User (Transaction # B1 Software Dev.Kit USMM)

Know How about Consolidation is basis for next Planning of Automation structure of licenses, later purchase contracts, measurement planning phase

(2) Consolidation over systems supported by unique User-Id (naming conventions to be considered) 11 Key facts about hannover re hannover re's SAP CCOE SAP licenses at hannover re SAPSAP lic.mgmt.lic.mgmt. @@ HRHR Conclusion License measurement for SAP Consolidated license status based on measurement

# Developer  ERP User # Professional User Consolidated license status is basis for Hierarchy # Limited Professional # Employee User internal Cost Allocation and Transfer Pricing # ESS-User # Biz Expert Upgr. User (cost model) Upgrades # Payroll Processing # BA&T SAP BO Edge P&C # BA&T SAP Disclosure Mgt. # SAP App. Biz Analytics Prof. Engines # SAP BO BI Suite (User) etc. # B1 Professional U  Basis for planning of later purchases # B1 Limited CRM User # B1 Software Dev.Kit # … • Consolidated overview (on basis of unique User-IDs)

and Engines … BO User • Inquired needs of new licenses from projects Combination Basis is „Named User“ with information for • Extrapolation of growth of departments/company system, company, etc. B1

 Compliant optimization of SAP Licenses based on actual usage • Automated classification of users (for ERP) with subsequent manual consolidation • Measurement results and planning of later purchases lead to additional licenses

12 Key facts about hannover re hannover re's SAP CCOE SAP licenses at hannover re SAPSAP lic.mgmt.lic.mgmt. @@ HRHR Conclusion License measurement for SAP Important aspects from hannover re's perspective

 Valid price list and reference to purchased license contracts  License terms and structure  Named User + Engine • Hierarchy (Dev./Prof./Limited/BIUser/Employee/ESS etc.) • Limited Professional User − Defining agreement for existing customers (German: “Bestandskunde”) − Ratio of “Limited Professional User” to “Professional User” • Upgrade User (combining user types over modules) • “Indirect” usage • Engines

 USMM and SLAW/LAW2 for SAP licence audit, and preceding user classification  Use supp. tools at an early stage, constantly, and where possible automated  Right of reconfiguration if possible and do proactive planning of later purchase  Consideration of 3rd-party systems (e.g. DOXIS), S4/Hana, Subscriptions etc.

13 Conclusion from procedure at hannover re Key facts about hannover re hannover re's SAP CCOE SAP licenses at hannover re SAP lic.mgmt. @ HR ConclusionConclusion Conclusions from procedure at hannover re Key take away

 The SAP CCOE must show dedicated commitment to the license topic • Know-How in respect to SAP licenses must exist in customer organization • Channelling of license/contract topics (e.g. from projects and measurement activities) from hannover re’s process perspective is assigned to a dedicated supplier manager  Ongoing tracking of the license status • Established procedure for ongoing license auditing/measurement for own purpose  User classification in ERP systems automated with tool support (based on usage, compliant, automated with samQ (reduced effort))  Prepare planning of later purchases on a regular basis and at an early stage (controlling of the yearly maintenance fee)

Optimization of SAP licenses at hannover re

14 Key facts about hannover re hannover re's SAP CCOE SAP licenses at hannover re SAP lic.mgmt. @ HR ConclusionConclusion Disclaimer

This presentation does not address the investment objectives or financial situation of any particular person or legal entity. Investors should seek independent professional advice and perform their own analysis regarding the appropriateness of investing in any of our securities.

While Hannover Re has endeavoured to include in this presentation information it believes to be reliable, complete and up-to-date, the company does not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such information.

Some of the statements in this presentation may be forward-looking statements or statements of future expectations based on currently available information. Such statements naturally are subject to risks and uncertainties. Factors such as the development of general economic conditions, future market conditions, unusual catastrophic loss events, changes in the capital markets and other circumstances may cause the actual events or results to be materially different from those anticipated by such statements.

This presentation serves information purposes only and does not constitute or form part of an offer or solicitation to acquire, subscribe to or dispose of, any of the securities of Hannover Re.

© Hannover Rück SE. All rights reserved. Hannover Re is the registered service mark of Hannover Rück SE.

15 SAP LICENSE OPTIMIZATION WITH SAMQ

Martin Kögel, VOQUZ

22.06.2017 SAP SYSTEM MEASUREMENT WITH SAMQ Active and continuous

Periodical license optimization across all connected SAP systems

Analysis of indirect access Find and by homegrown deactivate and third-party inactive users software

View license Automated details and license histories in the allocation samQ according to Dashboard activity in SAP

Ongoing tracking of engine consumption

24 SAP SYSTEM MEASUREMENT WITH SAMQ

Price list

▪ Professional Most common ▪ Limited Professional standard licenses ▪ Employee ▪ …

▪ Worker Additional ▪ Logistics standard licenses

chargeable ▪ Project Self Service ▪ …. User classification

Contractual agreements ▪ Individual license A ▪ Individual license B ▪ …

USMM Result Additional license allocation ▪ Multi-client system LAW ▪ Test ▪ Basis administration

25 SAP SYSTEM MEASUREMENT WITH SAMQ

Price list

▪ Professional Most common ▪ Limited Professional standard licenses ▪ Employee ▪ … Automated ▪ Worker user Additional ▪ Logistics standard licenses chargeable ▪ Project Self Service classification ▪ …. with samQ

Contractual agreements ▪ Individual license A ▪ Individual license B ▪ …

USMM Result Additional license allocation ▪ Multi-client system LAW ▪ Test ▪ Basis administration

26 LICENSE OPTIMIZATION WITH SAMQ samQ optimization report

▪ Including all individual license types (named users) ▪ Define and run additional reports on license usage and user behavior ▪ Capabilities for identification of developers and free development resources

27 ACTIVE SAP LICENSE MANAGEMENT All information at your finger tips

28 SCENARIO ANALYSIS Find your best licensing strategy

▪ Run analyzes and develop license scenarios based on any desired customizing settings ▪ samQ offers templates for standard license types (e.g., worker, logistics and project user)

29 INDIRECT ACCESS Tool-supported analysis

Discover non-dialogue users in connected SAP systems

30 INDIRECT ACCESS Tool-supported analysis

8 interfaces, which must be analyzed for indirect access

48 interfaces are uncritical ▪ Only technical activities ▪ The customer can prove that it is not a case of indirect use

31 VOQUZ THANK YOU FOR YOUR ATTENTION

VOQUZ Labs GmbH Reichenbachstr. 2 85737 Ismaning, Germany

Martin Kögel Director Business Development

P. +49 89 925191417 E. [email protected]

www.voquz.com

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