SAP Cloud for Customer goes CPQ @ Mondi18 October 2018

Alexandra Dianics (Mondi) & Rainer Förster (Aicomp)

Introduction to Mondi & Aicomp

Our cooperation history

Mondi CrP’sway to CPQ

CrP’s CPQ Process and Requirements

Where we are with our PoC…

… and where we go from now

PowerPoint Guideline 118 October 2018

Introduction to Mondi & Aicomp

2PowerPoint Guideline 18 October 2018

● Follow Mondi Group on ● Learn more about the industry, latest trends and stories from all across Mondi on our online newsroom mondigroup.com/newsroom.

Introduction to Mondi Group

18 October 2018Mondi Group presentation 3

Mondi is a global leader in packaging and paper

More than 100,000 solutions for our customers

Group offices in Johannesburg, London and Vienna

FTSE4Good Index Series JSE’s Socially Responsible Investment Index

18 October 2018 4

26,000 employees

Over 100 operations across more than 30 countries

2.4M hectares of forest managed

Primary listing on the JSE Limited for Mondi Limited

Premium listing on the London Stock Exchange for Mondi plc

Paper

Containerboard

Sack kraft paper

Speciality kraft paper

10 operating sites

10 countries

Converting

Corrugated packaging

Industrial bags

Extrusion coatings

61 operating sites

25 countries

Consumer Packaging

Consumer goods packaging

Personal care components

Release liner

Technical films

30 operating sites

12 countries

Strong portfolio of packaging and paper solutionsWe produce pulp, paper and plastic films and develop and manufacture effective industrial and consumer packaging solutions.

18 October 2018

Uncoated Fine Paper

Office paper

Professional printing paper

6 operating sites

4 countries

5

Fibre Packaging

Key

Consumer Packaging

Uncoated Fine Paper

Fibre Packaging / Paper

Fibre Packaging / Converting

Group offices

Johannesburg

London

Vienna

Our global footprintWe operate locally with more than 100 operations in over 30 countries.

18 October 2018 6Visit mondigroup.com/locations for more information about where we operate.

Productionsites

Austria

Belgium

Bulgaria

China

Côte d’Ivoire

CzechRepublic

France

GermanyHungary

Iraq

Italy

Jordan

Lebanon

Malaysia

Mexico

Morocco

Netherlands

Oman

Poland

Russia

Serbia

Slovakia

SouthAfrica

Spain

Sweden

Thailand

Turkey

Ukraine

UK

US

Egypt

Finland

SouthKorea

Mondi Corrugated’s 16 operations are located in

AT (1), DE (3), CZ (1), PL (6), TR (4) and

RU (1).

Introduction to aicomp | groupCompany History

18 October 2018 7

SAP’s LO-VC is used by this German startup AICOMP Consulting GmbH for the complete estimating process of a corrugated box plant.

Expansion of AICOMP’s operations started with offices in Switzerland (2002), USA (2003, 2008), Austria (2012), Bosnia (2017) and UK (2018).

The first VCPowerPack release hits the Paper Packaging and Media markets, providing a stable, maintainable SAP software AddOn.

With the acquisition of ABAYOO the aicomp | group continues expanding into the cloud sector, becoming #1 SAP Reseller for ByD in GER.

2000 2002

2007 2016

aicomp | group 2018

Our business idea

Stable and reliable software platform

VCPP ISSAP Core

What if you could use Standard out-of-the-box business software for your industry specific processes WITHOUT bending and modifying it so standard maintenance becomes impossible? That was the main idea behind aicomp | software. VCPowerPack enhances, not modifies SAP’s stable core processes with your industry specifications, tailored to your individual business processes.

Business idea

SAP AddOn, config platform

Industry solutionsDeliverybest-in-class solution advisors and developers

step one step two step three step four

8

aicomp | group 2018

Our portfolio

Since our humble beginnings in 2000 aicomp | group constantly added products and services to its portfolio. Constant adaption is the foundation of our corporate culture and history; starting as variant configuration consultants and being today a system solution provider.

SAP S/4 HANA

Industry Focus

CONFIGURATION

applications

SAP CLOUD PARTNER

VCPP Software Suite

GLOBAL SUPPORT

Educate our clients

CLOUD INTEGRATOR

We’re an SAP shop. Period.

Paper, Plastic, Packaging.

Constant investment in new config technologies.

Always looking for the smartest frontend.

Reselling and Implementation.

aicomp | software secures your estimating precision.

Through Centers in EU, USA and partner network.

2 Training Centers (USA/EU) keep your staff up-to-date.

Pairing onPrem and Cloud.

Our portfolio list

10

Our cooperation history

11PowerPoint Guideline 18 October 2018

● 2007-2011: “Old VC” – rollouts in AT, DE, UKStandard SAP LO-VC with char/dependency orientation; issues: low performance due to 2.400-2.600 chars, UI not manageable for users

● 2008-2011: first usage of VC Powerpack as “Q2”Issue: Lead time for entering quotes/offer too long – quick entry with 95% cost accuracy requested; enhancements of our SAP LO-VC in parallel

● 2012: acquisition of Duropack plant (Mondi Bupak) which led to a Kernel and tool review. Decision for VCPP as Kernel solution which went live in 02/2014 (“COCA Light”)

Cooperation since 2007

1218 October 2018

● Since 2014,

o we did several upgrades of VCPP together as well as

o 9 COCA Light rollouts in PL and TR (around 450-500 additional SAP users in total).

o We implemented many improvements and enhancements to the new Kernel and handle issues and CR’s for both Kernel versions, but …

o We also failed on providing a CPQ solution which is seenas success, as competitive advantage, as workable solution for field sales and customer service by business - until now.

o In July 2018, we started a PoC of a different kind to finally reach this track record.

Successes and Lessons learned

1318 October 2018

Mondi CrP’sway to CPQ

1418 October 2018

From Stone Age to 2018 within 2-3 years

15

Stone Age Way of WorkingNo easy overview of customer (visit

preparation, “1 database”)Not 1 platform for sales person to do

her/his job and to cooperateNo speedy, performant way of getting

projects done and get out quotes/offers quickly (SAP ERP not

usable for Field Sales)<> competitive advantage low

“Tom’s Story”In 2014/2015, CrP developed a vision on how a day in life of a sales rep should look like and

how a CRM tool should support him/her. Tom’s story formed the

basis for a “Usage Concept” (~100 pages). This UC included

also the CPQ process.

Review of Scope and SplitIn 2016, we asked a business

consulting company to evaluate the scope and to define the split into

phases (priorization). In June, CrP’sOPCO confirmed scope and split

and IM department evaluated implementation partners.

1 2 3 4

18 October 2018

Implementation & Rollout of C4C/Insight Phase 1

The implementation project started in 11/2016 and the first plant went

live in 09/2017.Since then, further 12 plants went

live. The rollouts shall further continue.

13

The Project Targets of C4C/Insight Phase 1

18 October 2018Mondi Group presentation 16

Improve and professionalise CrP’s sales

force (even more) and its work by providing easy,

fast, structured access to customer-related data in

1 platform.

The Scope Split

18 October 2018Mondi Group presentation 17

Insight/C4C Phase 1is about the classic CRM functions like

opportunity, activity and visit management, but also the integration to SAP ERP and other tools

to gain a 360° view in the customer.

Insight/C4C Phase 2 is about the Quote-Offer Process (CPQ),

Releasing the product into production, Workflows between different departments and integrating with

Product Innovation tools.

● In total, 13 (out of 16) plants are rolled outo 1 pilot and 12 rollouts in 5 waves

(1 – 2 – 5 – 2 – 1)

o 500 users have been created so far

● The project has won a SAP Quality Award in April 2018

● Currently, we see a rather diverse usage of the system (“what is most useful for me”)

● Considerations of defining new KPI’s based on C4C data as well as harmonising usage

● Since 03/2018, we are in detail alignments for CPQ process andpreparing Phase 2.

What we reached so far in 2017 and 2018

18 October 2018Mondi Group presentation 18

Mondi CrP’sCPQ Process and Requirements

1918 October 2018

CrP’s Requirements to CPQ and CPQ Process

18 October 2018 20

Insight / C4C Phase 2

Handle Projects fromcustomer Request to Sent

OfferProject Creation

Sales can trigger necessarytasks or can directly create

quote and specify/price productStatus workflows enable easy tracking of tasks and Projects as well as lead time reporting

(total, per department etc)Copy Functions between tasks

and also to quotation (avoiddouble, manual entries)

Cost and Price a newly configured productwithin seconds

For all product typesSimulate changes of price parameters

Define new price

Use Quote in Offers andfurther

Bundling of quotes to offersApproval workflow based on

rules(Mobile) Approval by Sales

LeadsEnable Hitrate reporting andQuote/Offer Margin AnalysisTrigger existing automatisms

based on WONSome specifics

Cover special process „tender“ across alreadyinvolved system landscape

Integrate existing Product Innovation ToolsEnable Product Release Process between

Sales and PDD

1

2

3

4

Our technical concept idea needed to be verified

18 October 2018 21

StepSt

ep

Req. ForQuick Quote

StepSt

ep

Req. ForDesign

StepSt

ep

Req. ForLaboratory

Our hypothesis that we wantedto verify

We can bring in our VCPP-basedspecification into C4C to be ableto configure our different product

types incl dependencies

All our costing and pricing logicscan remain in ERP (to avoid

double maintenance)

At the same time, calling costingand pricing is speedy enough

(returned within few seconds toC4C)

● Our PoC does not only exist on paper/slides – why?o Strategic importance for the business segmento Verification if our technical concept is technically feasible

(for key topics/requirements)o Verification of speed/performance of pricing request into

backend (as accordingly important for business)o We failed to generate a track record in the pasto Involvement of many people from several hierarchical

levels in Usage Concept and Alignment Phase > expectations are accordingly high

● Why with Aicomp, not with other CPQ tool?o Quoting/Offering to customer requires to specify in detail,

not only defining 5-10 parameters

● Scopeo Project creation as bracket for all activities necessary to

quote/offer a product to customero Data collection screen (fill in fields of all objects initially

triggered on 1 screen)o 3 cases: create project with

- Only Sample Request- Only Quotation (incl Pricing Request to ERP backend)- Sample & Quotation (incl Pricing request to ERP backend)- For 2 product types (out of 7), test data based on productive

system

o Few copy functions object to objecto Task Worklist, 2 Tiles on Home Screen

Scope & Target of PoC

18 October 2018 22

Where are we with our PoC…

2318 October 2018

… and where are we going from now

2418 October 2018

Roadmap withC4C/Insight Phase 2

18 October 2018 25

● 10/2018:o Get final Approval from Business Mgmt

o Finish Alignments with Business(= scope clear to estimate efforts)

● 11/2018: o Effort estimate, Budget, Timeline

o Incl all internal and external suppliers

● Start implementation Project still 2018

● 2 Go-Lives planned for 2019

● In parallel, enable C4C Phase 2 in certain plants (rollouts to COCALight) Excerpt

Thank youLet’s stay in touch:

Alexandra Dianics, Mondi Group

Rainer Förster, aicomp | group

Forward-looking statements disclaimer

This document includes forward-looking statements. All statements other than statements of historical facts included herein, including, without limitation, those regarding Mondi’s financial position, business strategy, market growth and developments, expectations of growth and profitability and plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as ‘believe’, ‘expects’, ‘may’, ‘will’, ‘could’, ‘should’, ‘shall’, ‘risk’, ‘intends’, ‘estimates’, ‘aims’, ‘plans’, ‘predicts’, ‘continues’, ‘assumes’, ‘positioned’ or ‘anticipates’ or the negative thereof, other variations thereon or comparable terminology. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Mondi, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements and other statements contained in this document regarding matters that are not historical facts involve predictions and are based on numerous assumptions regarding Mondi’s present and future business strategies and the environment in which Mondi will operate in the future. These forward-looking statements speak only as of the date on which they are made.

No assurance can be given that such future results will be achieved; various factors could cause actual future results, performance or events to differ materially from those described in these statements. Such factors include in particular but without any limitation: (1) operating factors, such as continued success of manufacturing activities and the achievement of efficiencies therein, continued success of product development plans and targets, changes in the degree of protection created by Mondi’s patents and other intellectual property rights and the availability of capital on acceptable terms; (2) industry conditions, such as strength of product demand, intensity of competition, prevailing and future global market prices for Mondi’s products and raw materials and the pricing pressures thereto, financial condition of the customers, suppliers and the competitors of Mondi and potential introduction of competing products and technologies by competitors; and (3) general economic conditions, such as rates of economic growth in Mondi’s principal geographical markets or fluctuations of exchange rates and interest rates.

Mondi expressly disclaims

a) any warranty or liability as to accuracy or completeness of the information provided herein; and

b) any obligation or undertaking to review or confirm analysts’ expectations or estimates or to update any forward-looking statements to reflect any change in Mondi’s expectations or any events that occur or circumstances that arise after the date of making any forward-looking statements,

unless required to do so by applicable law or any regulatory body applicable to Mondi, including the JSE Limited and the LSE.

18 October 2018 27