SAP Helps Companies Address Global Instability, Rising Commodity Prices

   SAP Helps Companies Address Global Instability, Rising Commodity Prices

SAP® Commodity Management Solution Addresses Price and Supply Volatility by
Offering Improved Transparency into Commodity Risk

PR Newswire

ZURICH, Oct. 8, 2013

ZURICH, Oct. 8, 2013 /PRNewswire/ --SAP AG (NYSE: SAP) today announced the
latest version of the SAP® Commodity Management solution, an integrated
offering designed to help enterprises protect and increase profit margins as
they buy or sell commodities and manage overall commodity risk. The
announcement was made at the global launch event for SAP Commodity Management,
held October 8 in Zurich, Switzerland.

(Logo: http://photos.prnewswire.com/prnh/20110126/AQ34470LOGO)

The recent volatility in commodity prices has outpaced worldwide financial
volatility. With increasing global demand and continuing unpredictability,
industries such as consumer products, mining and metals, oil and gas,
chemicals, automotive and high tech need better ways to defend against
potential financial damage that commodity price uncertainty causes. SAP
Commodity Management is available with enhancement package 7 for the SAP® ERP
application and is powered by the SAP HANA® platform. It offers a single
platform that can help companies analyze, understand and mitigate commodity
risks, contributing to more predictable business results that can provide:

  oPowerful analytics and real-time commodity position reporting across
    multiple business units
  oSupport for complex commodity pricing rules for physical purchases and
    sales
  oMore efficient execution of hedging strategies
  oFunctionality designed to help handle integrated accounting and settlement
    processes of physical and financial commodity transactions
  oLinking detailed physical transactions with financial hedges to help
    comply with global hedge accounting standards

"Litasco has chosen SAP to establish a stable, reliable and secure information
environment to manage the company's commodity operations as an integral part
of our existing SAP system landscape," said Nikita Kochetkov, director of
Accounting, Taxes and Treasury, LITASCO SA. "We appreciate SAP's continued
investment into this market and rely on further valuable interaction with SAP
for the commodity management solution."

SAP Commodity Management Delivers Results Across Industries
Whether a company produces commodities for sale into the global market,
purchases commodities to convert them into semi-finished products or buys
commodities to manufacture consumer goods, commodity management software from
SAP will be able to help organizations across many industries improve
transparency in their risk positions.

  oMining companies can use SAP Commodity Management to better manage the
    sales process of raw materials against complex, index-based pricing rules
    and to help assess and hedge their risk positions from the physical sales
    business.
  oMetal companies will be able to use the solution to help buy in metal
    commodities and to sell metal products with complex pricing rules, often
    index- and quality-based, as well as to better assess and hedge the price
    risk that arises from the net open physical long and short positions.
  oConsumer industries can deploy the solution to help handle complex buying
    processes for physical or contained commodities in the input materials for
    their manufacturing process, thus helping to assess and hedge the price
    risk from their forecasting and purchasing positions.

"Companies are dealing with increasingly volatile market prices and stringent
regulations," said Anja Strothkamper, vice president, Line-of-Business
Solutions for Commodity Management, SAP. "Sitting back and thinking these
situations are beyond control will put companies' profitability and
competitiveness at risk. SAP Commodity Management gives companies a more
comprehensive view of risk across lines of businesses so they can react
quickly to market changes and situations. With SAP, companies are empowered to
protect and increase their profit margins as they buy or sell commodities
while managing overall risk."

For more information, visit the SAP Newsroom.

About SAP
As market leader in enterprise application software, SAP (NYSE: SAP) helps
companies of all sizes and industries run better. From back office to
boardroom, warehouse to storefront, desktop to mobile device – SAP empowers
people and organizations to work together more efficiently and use business
insight more effectively to stay ahead of the competition. SAP applications
and services enable more than 248,500 customers to operate profitably, adapt
continuously, and grow sustainably. For more information, visit www.sap.com.

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