SAP® Innovation Awards 2020 Entry Pitch Deck Providing Full Transparency Into Ingredients and Manufacturing Frosta AG Company Information

SAP® Innovation Awards 2020 Entry Pitch Deck Providing Full Transparency into Ingredients and Manufacturing FRoSTA AG Company Information

Headquarters Bremerhaven, Germany Industry Consumer products Web site www.frosta-ag.com

One of the largest manufacturers of frozen foods in Europe, FRoSTA AG is dedicated to providing consumers with the tastiest and most innovative nutritious foods using only the best ingredients. This means more than finding the freshest fish, vegetables, and meats – it also means ensuring those ingredients are manufactured and acquired in a fair and environmentally friendly way. Always an industry pioneer, FRoSTA was the first frozen-food brand in Europe to abandon the use of taste enhancers, colorings, aromas, stabilizers, emulsifiers, and other food additives. It is also among the first to appreciate the benefits of digitalization and the importance of holistic integration in achieving it. FRoSTA relies on a unified enterprise platform and a wide array of intelligent technologies to track ingredients for all its products efficiently and effectively. It then provides that detailed level of information to customers – so they too can be sure the FRoSTA foods they love reflect their own values of health and sustainability for their families, the planet, and global communities. With its suite of SAP® solutions running on SAP S/4HANA® and interlinked with SAP Cloud Platform, FRoSTA serves as a model for the responsible, sustainable, and ethical intelligent enterprise.

Challenge Customers want to know Today’s customers want healthy food products prepared in sustainable ways. FRoSTA knows that success in the everything about a product food business depends on having the transparency to demonstrate that every ingredient and manufacturing and its ingredients so they process meets those standards. This, in turn, requires incorporation of the most advanced technologies. can be sure they’re spending their money in a Solution way that aligns with their SAP S/4HANA connects operations enterprise-wide. SAP Cloud Platform and SAP Fiori® apps are then used to values. We want to give transmit data from the SAP HANA® database to internal teams and the customer-facing Web site. Internet of them that level of Things technology will eventually let customers design their own products and track them throughout production. transparency, which means gathering an Outcome enormous amount of data Process automation is greatly increasing operational efficiency. Faster data access and insight is improving and making it available in decision-making and allows customers to track product supply chains, including country of origin and carbon real time. That's what we're footprint for all ingredients, with much more to come. All of this has helped raise annual turnover to €500 million. doing with our new platform based on SAP S/4HANA and SAP Cloud Platform. Data To run product Faster throughput, Ben Windhorst, DTO&IT Director, Real- transmission 8 calculations – thanks to better- FRoSTA AG from the field – down from 30% integrated business time down from weeks minutes 8 hours planning

As a food company, FRoSTA has made protecting the environment a key factor in its business strategy. In fact, FRoSTA is already part of the food sustainability solution insofar as frozen foods last longer, which helps to reduce food waste. But FRoSTA wanted to take sustainability a step further by offering customers delicious frozen foods made with clean, responsibly sourced ingredients. And it wanted to extend that transparency to its digitally savvy, environmentally-minded consumers. The challenge was how to unify operations and centralize data to track every ingredient. The goal was to transmit that data to internal teams to help them make the best decisions for the business and to customers so they could make the best decisions for their shopping carts.

To gain the insight needed to ensure environmental and economic sustainability, FRoSTA looked to: ▪ Build an innovation platform using advanced technologies to unify data and processes across the business ▪ Automate as many processes as possible, making them more efficient and effective and enabling integration of intelligent technologies, such as IoT, AI, and blockchain ▪ Deliver an even deeper level of transparency about ingredients and manufacturing to customers ▪ Gain supplier confidence to help more of them integrate with FRoSTA and further drive transparency goals ▪ Offer new services based on data insights, creating new opportunities and business models

FRoSTA’s intelligent enterprise platform project is being developed using: ▪ SAP S/4HANA running on SAP HANA to unify operations and support foundational services ▪ Standard and custom SAP Fiori apps connected through SAP Cloud Platform to transmit agricultural and other types of data from seed to field to bag – along the entire supply chain ▪ Customer-facing Web page where consumers can review ingredient and sourcing information on every FRoSTA product ▪ Pilot using the SAP Cloud Platform Internet of Things service to transmit analytical and transactional data from machinery in the factory and support plant maintenance ▪ Proof-of-concept project using blockchain technology to help ensure stronger data security to convince more suppliers to participate in transparency initiatives, thus transferring more information from the field to the consumer ▪ Future use of IoT technology to allow consumers to order customized products and track them along every stage of production

Business or Social IT Human Empowerment ▪ 30% faster throughput with ▪ Single technology source and ▪ Online ingredient tracking integrated business planning vendor, helping ensure across the supply chain ▪ 8-minute complex product integration and system ▪ Customer confidence in calculations – down from 8 synergy FRoSTA as a healthy, hours ▪ Solution development and environmentally friendly, and ▪ Unified operations and deeper delivery in days rather than socially responsible brand insight months ▪ Employee participation in the ▪ Increased process automation ▪ Faster data modeling, greatly digital transformation process and efficiency expanding business ▪ Convenient and flexible e- ▪ Total ingredient and carbon- intelligence opportunities for learning – easing change footprint transparency controllers and analysts management, speeding ▪ New data-driven service and ▪ Sustainable change adoption, and raising business model opportunities management employee satisfaction (especially in the factory)

User

SAP® Cloud Platform Your data center

SAP S/4HANA® SAP Gateway Application technology* client

Integration iOS Suite (Connectivity) SAP Leonardo Blockchain Secure tunnel Android

Portal Custom data Cloud connector SAP Fiori ® SAP HANA® Windows launchpad database Third-party identity provider Trust Desktop Microsoft Azure

Deployment status Proof of concept

Date November 15, 2019 Number of users 100 SAP technologies used: Deployment status SAP product (live or proof of concept [POC]) Contribution to project

1 SAP S/4HANA® Live Unify processes and data

2 SAP HANA® database Live Provide central data repository

3 SAP Fiori® apps Live Streamline standard processes across business areas

4 SAP Cloud Platform Live Develop apps and transmit data between systems

5 SAP SuccessFactors® Learning Live Support training, enablement, and change management

SAP Leonardo IoT, SAP Leonardo PoC 6 Blockchain

7 SAP Cloud Platform Integration Suite Live SAP Cloud Platform Connectivity

If you have used one of the services or support offerings from SAP Digital Business Services during the implementation or deployment phase, please select with X one or more of the following offerings:

SAP MaxAttention™ SAP ActiveAttention™ SAP Advanced Deployment SAP Value Assurance SAP Model Company Others: [Enter the service] SAP Innovation Services SAP Innovative Business Solutions © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 8 Advanced Technologies

The following advanced technologies were part of the project.

Technology or use case Yes or no Contribution to project

1 3D printing No

Yes – Proof of 2 Blockchain Data security for FRoSTA AG and suppliers concept

Plant maintenance and planned use for made-to-order 3 Internet of Things (IoT) Yes – Pilot products and tracking

Yes – Pilot (not SAP® software, 4 Machine learning or AI Process automation and acceleration Azure Machine Learning)

5 Conversational AI No

6 Robotic process automation No

7 Data anonymization No