Active SAP License Management @ hannover re

Dr. Uwe Vehlies (uwe.vehlies@hannover-re.com)

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
Key factsabout
abouthannover
hannoverrere 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 Talanx 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 insurance clients in about

1990 150 countries
Life & Health reinsurance as
a strategic growth segment

1966
Foundation by HDI as a subsidiary
Property & Casualty reinsurance

* Majority shareholder HDI V.a.G.

1
Key facts
Key factsabout
abouthannover
hannoverrere 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 Rckversicherung AG, Germany

1996: Hannover Rck SE Malaysian Branch, Malaysia

1992: Hannover Reinsurance (Ireland) Ltd., Ireland

1990: Hamburger Internationale Rckversicherungs-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 Rck SE Canadian Branch, Canada

1979: International Insurance Company of Hannover, Great Britain

2
Key facts
Key factsabout
abouthannover
hannoverrere 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 Munich Re DE 39,035 37,7611)
2 Swiss Re CH 33,276 31,640
3 Hannover Re DE 17,457 15,1001)
4 Berkshire Hathaway Inc. US 14,919 14,919
5 SCOR FR 13,756 12,324
6 Lloyd's 2) UK 13,199 10,416
7 RGA US 9,118 n.a.
8 China Re 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 MAPFRE RE ES 2,255 2,011
For further information please see A.M. Best Bests Review (September 2015)
1) Net premium earned
2) Reinsurance only
n.a. = not available at time of publication

3
Key facts
Key factsabout
abouthannover
hannoverrere 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
Key factsabout
abouthannover
hannoverrere 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
Bogot
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 hannover
hannover re's
re's SAP
SAP CCOE
CCOE 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 hannover
hannover re's
re's SAP
SAP CCOE
CCOE 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 hannover
hannover re's
re's SAP
SAP CCOE
CCOE 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 SAP
SAPlicenses
licenses at hannover
hannoverre
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
Limited Professional Limited Professional user classifi- xx Limited Professional
ERP User x Employee User
Employee User Employee User Employee User cation with x Employee User
Hierachy samQ xxx ESS xxx ESS
xxx NetWeaver Found-

2017/18 Add and Reconfigure

dation for 3rd-Party
x Platform User

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

Payroll Processing Payroll Processing Contract 2012 Payroll Processing

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

SAP App. Biz Analytics Prof.

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
to be taken into account for license B1 Limited CRM User
B1
B1 Software Development Kit
conform planning of later purchases
before performing license auditing procedure Future Contracts

Each contract with updated General Terms and Conditions Subscriptions /

Hana / HEC) ???
(quarterly updated price list)

9
Key facts about hannover re hannover re's SAP CCOE SAP
SAPlicenses
licenses at hannover
hannoverre
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 Lower priced for user classification
purchases
higher priced users user during measurement
preferred and also based on usage
provides more
more than needed
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 SAP
SAP lic.mgmt.
lic.mgmt. @
@ HR
HR 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
P03 P03 # Professional User Consolidated
ERP User ERP User LAW # Limited Professional
PH1 PH1 measurement
Hierarchy Hierarchy Result # Employee User
IHP IHP # ESS-User
result for transfer
to SAP
Contract (partly per LAW)
Other # Biz Expert Upgr. User
and License
Manually performed
Validation in Excel
Consolidation and

Know How
Classification
USMM Download

Since 2014/15 P03 # Payroll Processing

Engines USMM-
automated User PH1 # BA&T SAP BO Edge P&C
etc. Reports # BA&T SAP Disclosure Mgt.
Classification IHP
(daily current)

regarding overall
on basis of

Validation

contract
used DM # SAP App. Biz Analytics Prof.
BO User Download in # SAP App. Biz Analytics Prof.
manual effort transactions FC
Combination Excel list # SAP BO BI Suite (User)
of person days IH
for each (samQ)
measurement # B1 Professional U
B1 # B1 Limited CRM User
B1 Download
(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 SAP
SAP lic.mgmt.
lic.mgmt. @
@ HR
HR Conclusion

License measurement for SAP

Consolidated license status based on measurement

ERP User
# Developer
# Professional User
Consolidated license status is basis for
Hierarchy # Limited Professional
# Employee User internal Cost Allocation and Transfer Pricing
# ESS-User

Upgrades
# Biz Expert Upgr. User
# Payroll Processing
(cost model)
# BA&T SAP BO Edge P&C
# BA&T SAP Disclosure Mgt.
# SAP App. Biz Analytics Prof.
# SAP BO BI Suite (User)
Engines
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)
BO User
and Engines
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 SAP
SAP lic.mgmt.
lic.mgmt. @
@ HR
HR 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 Conclusion
Conclusion

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 res 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 Conclusion
Conclusion

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 Rck SE. All rights reserved.

Hannover Re is the registered service mark of Hannover Rck SE.

15
SAP LICENSE OPTIMIZATION
WITH SAMQ

Martin Kgel, 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

chargeable

Worker
Additional Logistics
standard licenses 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
chargeable

Additional


Worker
Logistics
user
standard licenses 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 Kgel
Director Business Development

P. +49 89 925191417
E. martin.koegel@voquz.com

www.voquz.com

32