Intelligent Supply Chain with SAP_Value.pptx

Driving business value with
SAP Digital Business Planning
powered by S/4HANA, IBP, SAC and Ariba
Intelligent Supply Chain with SAP solutions

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© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Legal Disclaimer
The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of
SAP. This presentation is not subject to your license agreement or any other service or subscription agreement with SAP. SAP
has no obligations to pursue any course of business outlined in this document or any related presentation, or do develop or
release any functionality mentioned therein. This document, or any related presentation and SAP´s strategy and future
developments, products and or platforms directions and functionality are all subject to change and may be changed by SAP at
anytime for any reason without notice. The information in this document is not a commitment, promise or legal obligation to
deliver any material, code or functionality. This document is provided without a warranty of any kind, either express or implied,
including but not limited to, the implied warranties of merchantability, fitness for particular purpose, or non-ínfringement.This
document is for informational purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or
omissions in this document, except if such damages were caused by SAP´s willful misconduct or negligence.
All forward-looking statements are subject to various risks and uncertainties that could actual result to differ materially form
expectations. Readers are cautioned no to place undue reliance on these forward-looking statements, which speak only as of
their dates, and they should not be relied upon in making purchasing decisions.

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Combining S/4, IBP, SAC and Ariba
Global community of practice
Differentiated Capabilities
Common User Experience
Common Platform
Process Interoperability
Unified Data Model
This is the current state of planning and may be changed by SAP at any time.
S/4
IBP
Ariba
SAC

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What does that mean for planners with SAP Solutions for Digital Business Planning?
Value Enabler How is it achieved? What is the Business Value?
Common User
Experience
• Both IBP and S4 leverage Fiori as the common user experience for
managing processes and analytics across MRP/ATP/PPDS/IBP
• Consistent system behavior and UX principles
• Single navigation structure – appearing and behaving as a single
platform instead of switching to a different platform and method of
navigation in a separate system
• Shorter learning curve for users, faster time to productivity, fewer mistakes
and seamless navigation between planning and execution tasks.
• Significantly improves efficiencies in day to day tasks and reduces “swivel
chair” interaction and data handling
• Reduction of frustration, errors and non-value tasks
Business
Process Inter-
Operability
• Direct linkage between planning and operational systems. Contextual
navigation and embedded process management between IBP and ECC
or S4
• Synchronized planning harmonizes IBP and S/4 PPDS and MRP. Link
IBP Allocations to S4/aATP. Execute supply orders from IBP in ECC/S4.
Link IBP planning and PPDS scheduling (roadmap).
• Multi-Enterprise Planning leveraging the Ariba Business Network that is
natively and directly integrated with IBP and ECC or S4
• Integration between IBP and SAP Analytics Cloud (SAC) and BPC for
financial planning.
• Critical for users that operate across planning and execution domains
• Enable a single user that works on network planning and needs to make
decisions that impact or gets impacted by factory scheduling.
• Reduce planning cycle time by including trading partners in a collaborative
way
• Single access point for suppliers to collaborate on planning, ordering, quality
management, sourcing events
• Allowing for sharing scenarios between planning and finance, e.g. revenue,
operating plan and cost assumptions
Unified Data
Model
• Common data model between planning and execution systems
• Moving towards real time integration is simplified
• Simplifies ongoing integration and reduces the potential for data, integration
and mapping induced processing and planning errors.
• Eliminating ETL efforts and ongoing support, monitoring and latency
Common
Platform and
Technology
• IBP & S4 are based on the same technology stack. This simplifies
security, administration, configuration on the customer side and allows
for extensibility across planning and execution on a single platform.
• Faster time to value and faster capability delivery. This results in a much
lower TCO for the supply chain and IT organizations while providing the
business with a more seamless and cohesive experience.
Differentiated
capabilities
• S4 provides differentiated capabilities that take advantage of proximity to
execution data (see slide X)
• IBP was innovated from scratch, purpose built for the cloud
• Planning embedded in ERP based on real-time transactions
• IBP as system of differentiation with tight interoperability to ERP
Global
community of
practice
• Broad partner ecosystem
• Global customer and industry community
• Lower TCO for implementation and adoption
• Leverage Industry Best Practices and knowledge sharing

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Make Life Easier for Planners:
Single Planning View Combines S4 / IBP / Ariba Data and Processes
Transactional
Exceptions in S4
Planning and Simulation across IBP
and S4 PPDS
Execute best option in S4 Collaborate
 Shorter learning curve for
users, faster time to
productivity
 Fewer mistakes and
seamless navigation
between planning and
execution tasks
 Significantly improves
efficiencies in day to day
tasks and reduces “swivel
chair” interaction and
data handling
 Reduction of frustration,
errors and non-value
tasks
Single Entry point and context
Prototype

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Planner drill down capability:
Ease of contextual navigation between IBP and S4/ECC
IBP
S4

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Value Chain Network Planning
 Flexible model
 Real-Time Scenarios and Analytics
Common User Experience, Common Data Model, Common Platform, Process Interoperability
SAP Digital Business Planning Platform – Functional Perspective
SAP Integrated Business Planning (IBP)
SAP S/4HANA
Leveraging key strengths of 3 components to enable next generation supply chain planning
Supply Chain Execution
 Transactional Planning
 Leverage proximity to core
Digital Business Planning
SAP Ariba Business Network
Supply Chain Collaboration
 High scalability
 Leverage large business network

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Enable better ‘customer and product experience’ by staying continuously aligned across departmental silos
with a unified view of real-time ‘demand and supply’ of the extended Supply Chain, all powered by SAP HANA
SAP Digital Business Planning Platform – Product Perspective
SAP Integrated Business Planning (IBP)
SAP S/4HANA
Digital Business Planning
SAP Ariba Business Network
Connect strategic and operational planning with real-time visibility and execution
 Supply Chain Control Tower
 Sales & Operation Planning
 Demand Management
 Inventory Optimization
 Demand Driven Replenishment
 Response and Supply
 Production Planning / Detailed Scheduling
 Available to Promise
 (Demand driven) MRP
 Extended Service Part Planning
Supply Chain Collaboration (SCC)
 Planning Collaboration
 Multi-tier Order Collaboration
 Quality Collaboration

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SAP Recommendation to insert customer specific content on this slide
1. Introduce SAP IBP on top of
ECC+APO for quick time to value
a. Focus on differentiated
capabilities for an improved
S&OP, porting MEIO (Smart Ops)
b. Leverage existing ECC master
data to drive quick deployment
1. Faster and more robust planning
process with increased accuracy
2. Increased Customer Service levels
(reduced customer penalties)
3. Simplification of landscape
2021+
2020
SAS for Forecasting
MDS for Demand
Sensing
Tableau for Reporting
+
?*
* Keep for now and revisit in 2021

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Value Enablers – Supporting Material
Common User Experience
Business Process Inter-Operability
Unified Data Model
Common Platform and Technology
Differentiated capabilities
Global community of practice

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Harmonized User Experience with SAP Fiori - Example
S4
IBP
C4
Product
direction

Business Process Inter-Operability

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Single Planning View
Combines S/4 / IBP / Ariba Data and Processes
Prototype

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Continuous Planning with real time visibility and execution
Real time
Information
Digital Business
Planning
Asset Management
Maintenance Plans and Orders
Reliability information
Spare parts demand and supply
Manufacturing
Production Plans and Detailed Scheduling
Deployment Plans
Capacity information, Manufacturing Orders
Sales Execution
Sales Plans
Available-to-Promise Checks
Sales Orders and PoS Data
Risks and Opportunities
Logistics & Supply
Transportation Plans
Freight orders
Inventory information
Supply Chain execution data
Simulations Synchronized
Planning
IBP
Local CT
Local CT
Local CT
Local CT
Product
direction

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• Network and Plant Centric planning by coupling SAP IBP and
SAP S/4HANA
• Multiple Application Dimensions:
• Network Planning & Deployment Optimization using IBP
Response & Supply
• Production Planning & Detailed Scheduling using S/4HANA
ePP/DS
• Load Building using S/4HANA Transportation Management
• Supply Chain Visibility leveraging the Control Tower
• Supply Flow Analyst as the central planner across network and
plant-centric planning
• Flexibility and agility through mixed horizon handling
• Adjusting plans based on unexpected change of demand
• Enable detailed scheduling of plans for far out sales orders
Network Planning & Deplyoment Optimization
SAP IBP
Response & Supply
Embedded PP/DS
Plant Centric/Detailed Planning Load Building
Transportation
Management
SAP Supply Chain Control Tower
Synchronized Planning
Product
direction

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SAP Analytics Cloud and SAP Integrated Business Planning integrate
to provide the Financial Planning and Digital Boardroom visibility to
complete the Collaborative Enterprise Planning process.
• Digital Boardroom – Integrate Supply Chain data from IBP with real time
data from S/4 and other LOBs in SAC for full 360 view of the business.
• Integrated Financial Planning to align Corporate Financial Plan including
P&L from SAC with Demand and Supply plans in IBP
Collaborative Enterprise Planning Scenarios
SAP’s vision for Collaborative Enterprise Planning is to bring together all siloed
planning processes across the enterprise.
Partly
available

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Collaborative Enterprise Planning
Finance
Consolidate budgets and plans from across the organization
and drive collaborative enterprise planning to ensure alignment
between operational plans and financial goals
Supply Chain
Profitability fulfill demand with real-time supply chain planning. Combine
capabilities for sales and operations planning (S&OP), supply and demand
planning, and inventory.
Commercial
Create more effective sales and marketing plans and align them to business objectives. Predict the impact of
campaigns on sales revenue, optimize performance, and tightly track results.
Partly
available

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Planning Systems
Financial Planning and Analysis (FP&A) –
Account Based
Supply Chain Planning – Network Model
Financial Statements
Budget Planning
Cost Center Planning
Headcount and Asset Planning
Supply Chain Constraints
Directional Finance
Financial Targets
Constrained
Plans
• BPC
• S/4 HANA
Financials
• SAC
• External
• IBP
Partly
available

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Configurable data model for S&OP
IBP started with a highly configurable data model for
• Master data and
• Time series data
to enable strategic and tactical planning with IBP for S&OP, extended
by IBP for Demand and Inventory.
Static Data Model for OBP
Then IBP addressed operational planning with IBP for Order-based
planning. The data model of OBP is static and comprises
• Master data and
• Order data
Benefits
• Static model enabled built-in integration with SAP ECC and
S/4HANA from the very beginning
• On-the-fly aggregation of order quantities into bucket values of
time series key figures
Starting Position
Static Data Model
Application Layer
Configured Data Model
Order-Based
Planning
Time Series
Based Planning
Time Series Orders
Master Data
for Time Series
Master Data
for Orders
Integration
for Time Series
Based Planning
Integration
for Order-Based
Planning
ECC / S4/HANA

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Static Data Model
One Model for IBP - Today and Planned Future
Product
direction
Application Layer
Data Layer
Semantic
Model
Order-Based
Planning
Time Series
Based
Planning
Master Data
Time Series Orders
Semantic Layer
Application Layer
Configured Data Model
Order-Based
Planning
Time Series
Based Planning
Time Series Orders
Master Data
for Time Series
Master Data
for Orders
Integration
for Configured Data Model
ETL NRT
Integration
for Time Series
Based Planning
Integration
for Order-Based
Planning

Common Platform and Technology

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SAP
Customer
Cloud
On Premise
Firewalls
SAP IBP Architecture Overview
System Landscape
IBP Applications
HANA Database
Web User Interface
IBP Fiori
MS Excel
IBP Add-In
REST APIs
Frontend
Backend
Data Model
Calculations and
Algorithms
SAP Cloud Platform
SAP
CP-IAS Customer Cloud
Systems
SAP
Ariba
SAP JAM
S/4 Hana
or ECC
Other
(BW, …)
SAP SDI
DP Agent
SAP CPI-DS
Agent
SAP
CoPilot
SAP
CPI-DS
Cloud NW
OData Service
Data Integration
for SDI
Job Scheduling
IAM
Data Integration
for CPI-DS
Applications
SC Control Tower
S&OP
Demand
Inventory
Response
& Supply
Collaboration
Configuration
IBP Integration
AddOn
SAC
SAP Analytics
Cloud
Demand Driven
Replenishment
ECC only:
Demand Driven
Replenishment
SAP IPS SAP IAG

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Upload .csv files
• Manual data upload for master and key figure data via Data
Integration app on WebUI
SAP Cloud Platform Integration (CPI-DS) for
Time-Series Data
• Periodic data transfer from SAP / non-SAP system to IBP and
periodic transfer of planning results from IBP to SAP / non-
SAP systems
• Key Figures and linked Master Data
SAP Smart Data Integration (SDI) for
Order-based Data
• Built-in, bi-directional, periodic Integration between
S/4HANA (on-premise)/ ERP and IBP
• Order elements and linked Master Data
Data Integration
Flexibility, Scalability, and Fast Implementation
Mid term Forecast, Capacities,
Aggregated POS Data (Key Figures)
Sales Orders, Stocks, Deliveries,
Purchase Orders, Production Orders,…
(Order elements)
Short term Forecast,
Product Allocations,
Purchase Reqs,
Planned Orders

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ERP (ECC/S4) adapter for IBP integration
• Predefined bi-directional integration content and
model between ECC/S4 and IBP
• Open integration to also integrate non-SAP systems
• Mix of batch and real-time updates possible
• Many to many mapping between multiple ERP
instances and IBP planning areas
• ERP adapter to exchange data with IBP
• Move towards real-time leveraging change pointers
Native Integration lowering TCO

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Differentiating Capabilities in SAP S/4HANA
Intelligent enterprises across all industries are focused on business outcomes and innovation by leveraging an intelligent suite of applications, intelligent
technologies, and digital platforms. Discover how SAP S/4HANA and other supply chain solutions from SAP can help your business turn digital innovation
into a competitive advantage.
Reduced TCO by landscape simplification through native
Transportation Management with SAP S/4HANA; a single platform for
transportation management with basic and advanced shipping
functionality and real-time embedded analytics
Single platform for transportation management
Reduced TCO by landscape simplification through native warehouse
management with SAP S/4HANA; a single warehousing platform for all
warehousing operations, including optimization, automation, and labor
management
Single platform for warehouse management
Improved material planning with faster, more frequent material
requirements planning (MRP) runs – multiple times a day, with
planning and rapid replanning in minutes instead of hours to minimize
inventory. One single harmonized MRP process for all materials, both
unconstrained and those requiring advanced constraint-based
planning
Live MRP
What-if and scenario planning to react to market demand through the
best service at lowest cost. SAP S/4HANA in conjunction with the SAP
Integrated Business Planning application for sales and operations enables
integrated, continuous, and iterative supply chain planning
What-if and scenario planning*
Live inventory management that enables unlimited simultaneous
material movements and true transparency on inventory and
material flows. Decreased stock buffers due to better transparency
and insights
Real-time inventory
Ability for warehouse managers to predict the arrival date of a
shipment and manage delivery delays. Prebuilt set of KPIs supports
robust analytics for the business scenarios. Early and efficient
visibility for stock transport orders that leads to reliable processes
for planning and scheduling of goods in transit
Prediction of stock-in-transit arrival
Intelligent, real-time product availability check for sales, planned,
and production orders. Includes scalable available-to-promise (ATP)
for managing large transaction volumes and flexible allocation
management capabilities. Provides back-order processing with
intuitive priority classification and interactive exception handling
Advanced ATP
Dynamic planning of replenishments with demand-driven MRP
(DDMRP) that is fully integrated into existing MRP concept.
Replenishment only for real demand and introduction of buffers at
strategically important points
Demand-Driven MRP (DDMRP)
* Capability in italics is supported by an additional product

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Differentiating Capabilities in SAP Integrated Business Planning
Real-time experience data as well as real-time operational data have become digitally available to predict, plan, and drive goods through the supply chain more
sustainably, profitably and just-in-time. Traditional boundaries around planning horizons, cadences and layers of propagation have been replaced with a truly
integrated approach for strategically viable and optimized but still highly resilient and responsive supply chains.
Create a feasible and optimized supply plan respecting capacity and
material constraints / characteristics to respond to changes. Leverage
purpose built solvers using optimization, constrained heuristics and
pegging to understand the relationship of supply plans relative to
financial and service level goals.
Response & Supply Planning
Reduced TCO by landscape simplification through native warehouse
management with SAP S/4HANA; a single warehousing platform for all
warehousing operations, including optimization, automation, and labor
management
Inventory Optimization
Improved material planning with faster, more frequent material
requirements planning (MRP) runs – multiple times a day, with
planning and rapid replanning in minutes instead of hours to minimize
inventory. One single harmonized MRP process for all materials, both
unconstrained and those requiring advanced constraint-based
planning
Planning Automation and embedded ML
What-if and scenario planning to react to market demand through the
best service at lowest cost. SAP S/4HANA in conjunction with the SAP
Integrated Business Planning application for sales and operations
enables integrated, continuous, and iterative supply chain planning
What-if and scenario planning
Better predict customer needs and market dynamics by leveraging
statistical and machine learning algorithms. Using best practice
best-fit statistical models, outlier correction and time-series analysis
to provide for more automated, touchless demand planning across
different hierarchies.
Demand Planning & Forecasting
Detect, Analyze and Act with intelligent exception management
across the extended supply chain incl. manufacturers and suppliers
to predict and mitigate bottlenecks. Apply Machine Learning to
manage exceptions and analytics to navigate from alerts to
contextual planning views.
Control Tower & Intelligent SC Visibility
Effectively balance demand and supply and attain financial targets
and enable cross-functional process orchestration and collaboration.
Leverage process management to align different stakeholders in the
organization that have a different perspective or view on the plan
but act as one cohesive, aligned organization.
Sales & Operations Planning
Dynamic planning of replenishments with demand-driven MRP
(DDMRP) that is fully integrated into existing MRP concept.
Replenishment only for real demand and introduction of buffers at
strategically important points
Demand-Driven MRP (DDMRP)

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Partner Ecosystem – Digital Business Planning
APJ / Greater China
Global
Accenture
EY
Deloitte
Bristlecone
Westernacher
Latin America
MEE
EY
Deloitte
Westernacher
MHP
Camelot
Implement
Dowap
Accenture
BearingPoint
Bristlecone
Barkawi
Valantic
Krypt
Scheer
All for One Steeb
itelligence
Atos
DXC
Dvigex
Teamidea
Terralink
North America
North America
Accenture
Deloitte
EY
Bristlecone
Infosys
Beelogix
IBM
SCMO2
Bizbrain Technologies
SCM Connections
WCS
My Supply Chain Group
GitaCloud
TCS
China
EY
Deloitte
Westernacher
SPRO
Atos
NTT DATA
ITL
Neusoft
C&ST
EMEA North
EY
Deloitte
Westernacher
Camelot
IBM
Implement
itelligence
Accenture
Capgemini
Delaware
Flexso
Olivehorse
Rocket
Syncronic
Quinso
Krypt
Silveo
PWC
Dowap
Pivot
Innomate
Invenio
EMEA South
GOSCM
Accenture
Sintec
Apllos
MQA
Cast
Sineti
Everis
EY
Deloitte
MGS
Exed
Bizbrain
R2SAP
MSP
Solec
SCM Design
APJ
Bristlecone
TCS
EY
Deloitte
B-en-g
Abeam
GitaCloud
DXC
IBM
Accenture
Camelot
Bizbrain Technologies
Infosys
ICS
PwC
Westernacher
Accenture
Deloitte
EY
PwC
IBM
Bristlecone
Syscons
Seidor
Itelligence
GoSCM
SAPTools
Improva
Solida
Britehouse
DXC
Capgemini
OliveHorse
GitaCloud

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SAP Integrated Business Planning has a strong ecosystem
Consulting partners that help sell, demo, and implement
> 80 Partners globally
with SAP IBP focused
consulting practices:
• Sales support
• Demos
• Solution POVs
• Packaged service
offerings
• Business
transformation
workshops
• Implementation
accelerators

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IBP Pricing revised to focus, simplify and scale
Operational Excellence
 Data center expansion
 System Availability 99.89% (yearly running average)
 Upgrade Maintenance Period reduced from 53 hours to 24 hours (May
1, 2019); target is 12 hours. Average upgrade runtime 269 minutes (-
23.1%), with 91.9% < 6 hours. Reschedule requests down 54.5%.
 Attestations: SOC, IS27001 & ISO23001 completed; ISO27017 (Cloud
security) & ISO27018 (Data privacy) in process
 Disaster Recovery service in Europe, U.S.
IBP deployed on Hyper-Scalers
 Planned for Alibaba Cloud, Google Cloud Platform and Microsoft Azure
FedRAMP and ITAR/EAR
 SAP National Security Services (NS2) IBP solution meets FedRAMP
High requirements and adheres to ITAR/EAR requirement for U.S.
Persons on U.S. soil
 SAP NS2 offers SAP IBP as a secure dedicated tenant for each
customer hosted on AWS GovCloud
SAP Integrated Business Planning – Global Scale and Worldwide Coverage
New data centers:
• Dubai (UAE)
• Frankfurt (Germany)
• Riyadh (KSA)
• Tokyo (Japan)
• Colorado Springs (USA)

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SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its
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These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or
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The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional
warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or
any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation,
and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and
functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason
without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or
functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they
should not be relied upon in making purchasing decisions.
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