SAP Innovation Awards 2020 Entry Pitch Deck Connecting

SAP® Innovation Awards 2020 Entry Pitch Deck Connecting Businesses and Customers Quickly and Securely Grupo Telefónica

Company Information Headquarters Spain Industry Telecommunications Web site www. telefonica. es/grandesempresas (Spanish) § § Multinational telecommunications company operating in 24 countries One of the largest telephone operators and mobile network providers in the world Provides fixed and mobile telephony, broadband, and subscription television for retail customers Provides fixed, mobile, and data telecommunications; digital platforms; and information and communications technology services for the business-to-business sector © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

Connecting Businesses and Customers Quickly and Securely Grupo Telefónica Challenge APIs for SAP SMS 365 support our clients in their digital evolution and help them compete in the digital era. SAP Digital Interconnect consistently provides us with excellent service quality. We receive guaranteed throughput, no grey routes, and top-tier support from sales and tech teams. Angel Pacheco, Senior Consultant, Marketing and Business Development – Messaging and Emergency Services, Customer Experience Area, Grupo Telefónica’s mission is to help enterprise clients communicate with customers in an intelligent, highly mobile, and always-connected way. To enhance clients’ competitive edge, Telefónica wanted to provide SMS communication services that would ensure communications with customers were delivered quickly and securely. Solution Telefónica and the SAP Digital Interconnect group developed a robust set of communication services for global businesses. Using configurable APIs to integrate SAP® SMS 365, enterprise service, into client platforms, Telefónica provides a scalable infrastructure for creating innovative, interactive e-mail and SMS engagements. Outcome Telefónica enterprise clients can now take advantage of application-to-person messaging to interact with their customers. To provide speed, security, and reliability, SAP SMS 365 connects Telefónica to more than 1, 000 mobile operators in more than 220 countries and territories through its cloud-based messaging network. 10% © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Cost savings for Telefónica by eliminating downtime and incidents 10% Reduction in the time required to provision new customers and connect operators 10% Increase in overall revenue 3

Business Challenges and Objectives § Allow enterprise customers to send critical e-mails and one-way and two-way SMS messages to customers over secure and reliable routes § Deliver international SMS messages at cost-effective rates § Maintain an excellent global messaging service without downtime or incidents § Make application creation and deployment faster and more convenient § Provide developers with high-quality interactive documentation and tools § Keep messages secure and help ensure they are delivered to recipients quickly and without fail © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 4

Project or Use Case Details Grupo Telefónica uses SAP SMS 365 to provide SMS messages to its customers. Bidirectional services and application-to-person services from the SAP Digital Interconnect group enable secure and reliable SMS alerts and notifications. The overall solution provides Telefónica customers with: § Ability to create simple, innovative, interactive customer engagements using e-mail and one-way and two-way SMS messages § International termination of mobile-terminated SMS messages § Bidirectional Spanish SMS services using regulated 21 xxxx numbering § Ability to provide one-time passwords for online transfers and credit approval (banking customers) § Capability to design sophisticated SMS-based marketing campaigns with time-sensitive offers that reach millions of consumers § Capacity to send arrival and departure information and other real-time travel updates (travel and transportation customers) © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 5

Benefits and Outcomes Business or Social IT Human Empowerment § Consistent increases in annual message volume – reaching 26 million in 2017 § Access to a secure and scalable global digital messaging infrastructure § Competitive advantage of faster, safer message delivery over premium white routes (versus slower and unreliable grey routes) § Consumable, configurable APIs and programmable digital interfaces, enabling rapid deployment and faster time to market § Monthly average of 2. 2 million application-to-person notifications sent to customers around the globe § Cost savings of 10% by eliminating downtime and incidents § Messaging throughput and delivery assurances for critical and noncritical use cases § Higher customer satisfaction § 10% reduction in time required to provision new customers and connect to new operators § 10% increase in revenue © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC § High message open and conversion rates for recipients – enhancing clients’ campaign effectiveness § Fast, cost-efficient, safe, and user-friendly global messaging channel and communications 6

Architecture Enterprise messaging Banks Government Retail Flexible and scalable platform developed by SAP Digital Interconnect Supports all protocols, including SMPP, SS 7, UCP, HTTP, and SMTP Global coverage to mobile networks and subscribers Messaging APIs for SAP SMS 365 – SMPP, HTTP, MM 7 Media and entertainment Travel Healthcare Resellers Add-ons and applications Powered with internal and external reporting, configuration, and tracing tools from SAP Digital Interconnect Supports thousands of mobile network operator connections and customer accounts © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 7

Deployment status Live Date 2008 SAP technologies used: 1 SAP product SAP SMS 365, enterprise service Deployment status (live or proof of concept) Number of users Supports thousands of mobile network operator connections and customer accounts Contribution to project Global, digital messaging infrastructure that connects Telefónica to more than 1, 000 mobile operators in more than 220 countries and territories through its cloud-based messaging network Live If you have used an SAP service or support offering from SAP Digital Business Services during the implementation or deployment phase, please select with one or more of the following offerings: X SAP Max. Attention™ SAP Active. Attention™ SAP Value Assurance SAP Model Company SAP Innovation Services SAP Innovative Business Solutions © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC SAP Advanced Deployment X Others: Services from SAP Digital Interconnect 8

Advanced Technologies The following advanced technologies were part of the project. Technology or use case Yes or No 1 3 D printing No 2 Blockchain No 3 Internet of Things No 4 Machine learning or AI No 5 Conversational AI No 6 Robotic process automation No 7 Data anonymization No 8 Augmented analytics No © 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Contribution to project 9