Kraft Foods SAP Support and Operations Jane von Kirchbach Global SAP Support and Operations Lead

Agenda Agenda About Kraft Foods SAP at Kraft Foods Global SAP Support and Operations Overview From Project to Support Application Change Management SLAs, KPIs, and Metrics Customer Satisfaction Best of Global… best of Local Summary and Key Takeaways

About Kraft Foods

Fast Facts 2008 $41.9 billion in revenue Sales in approximately 150 countries Operations in more than 70 countries Approximately 98,000 employees Nearly $100 million in charitable contributions With revenues of $41.9 billion, Kraft Foods is one of the world’s largest food and beverage companies. For more than 100 years, we’ve offered consumers delicious foods they can feel good about. We are truly a global company with Sales in 150 countries Operations in 70 more 100K employees And we show our culture of giving back both at the corporate and individual levers with matching programs and volunteer support- Employees $1.4 Million & 60,000 hours of volunteering In 2007 4

Fast Facts Worldwide headquarters: Northfield, Illinois, US Eleven research and development centers 168 Manufacturing and processing facilities located in 47 countries More Quick facts our HQ is Northfield IL 11 R&D centers throughout the world driving our innovation 168 MFG and processing locations in a staggering 47 countries 5

An Amazing Brand Portfolio 9 Brands with more than $1 billion in revenue 50+ Brands with more than $100 million in revenue 40+ Brands over 100 years old Kraft Foods markets many of the world’s leading food brands. Our products are present in more than 99% of US households and enjoyed everyday in over 150 countries. Our billion dollar brands include: Kraft, LU our newest brand, Maxwell House, Milka, Nabisco and its Oreo brand, Oscar Mayer and Philadelphia - My person favorite for its quality and name Jacobs, - no relations 2009 is a milestone year for some big names: Ritz crackers celebrates 75 years in the US The iconic "Happy Little Vegemites" jingle debuted in Australia in 1954, 55 years ago.     Tang powdered beverage has been delighting consumers in China for 25 years. And a few 50th anniversaries: Jet-Puffed marshmallows, US The famous "perking pot" advertising campaign for Maxwell House coffee in the US O’boy chocolate drink mix, Sweden 6

Our Geographic Presence Kraft Foods Europe North America Asia Pacific Region Latin America Region Central & Eastern Europe, Middle East & Africa Region

SAP at Kraft Foods Project

Introduction to Catalyst Catalyst is the name of our multi-year program to streamline and standardize how we work throughout the company and do business with customers, suppliers and other external partners Catalyst will provide Kraft Foods with access to better information that we can use to respond more effectively to opportunities in the marketplace while helping us to better support business growth and address business challenges Catalyst builds on original SAP system in EU and leverages newer technology of ECC 6 Original European SAP System (i.e. STAR or Catalyst Europe) has been live for 6? Years Catalyst North America implementation in progress Catalyst Asia Pacific implementation going live in October 2009

Catalyst significantly expands Kraft Foods SAP footprint

Catalyst North America Catalyst NA went live in October 2007 with releases planned through 2011. Today End state Plants (% of COGS) 28 63% 54 2008 2009 2010 Ext MFG (% of Spend Value) 52 69% 150 2008 2009 2010 $20B 82% Revenue $24B DJ Catalyst has made very real progress Note Plants as % of COGS Ext as percent of Spend Value 2008 2009 2010 Trade Spend (% of AKV) <1% 100% 2008 2009 2010 Users 30% 9,000 30,000 2008 2009 2010 2011 Status: 1 Aug st 2009 *(Revenue numbers based on 2007 figures) 11

Global SAP Support and Operations Overview

Overview SAP Support and Operations is a global organization supporting NA, EU, and soon AP Catalyst systems Our teams support all live Catalyst SAP systems, including: Enterprise Resource Planning (ECC) Business Intelligence (BI) Warehouse Management (WM) Supplier Relationship Management (SRM) Advanced Planning Optimization(APO) Master Data Management (MDM) Customer Relatioship Management (CRM) SAP SAP Portals (Internal and External) XI and other Misc. SAP Systems Our team consists of internal employees and strategic partner staff, with on-site and off-shore (India) presence Our responsibilities include: Incident (ticket) management Change Management Small Enhancement Work On-going operational activities End user communications and alerts

Organization Structure SAP Competency Centers - Global SAP Support and Operations Functional Support Teams MTI Support Team OTC Support Team STP Support Team RTR Support Team STC Support Team Technical and Assisting Support Teams ABAP Support Team Master Data Support Team BI Support Team Security Support Team NA SUPPORT AND OPERATIONS ORGANIZATION EU Support and Operations Organization AP Support and Operations Organization XI Support Team Basis Support Team Portal Support Team Support Process Management Support Teams Customer Satisfaction Manager Operations Manager Process and Change Manager Applications and Tools Manager Functional and Project Teams, Legacy Teams and other internal/external partner Teams

If Critical or High issue, Helpdesk calls SAP On-Call Support SAP Ticket Process END USER KEY USER HELP DESK SAP SUPPORT 1) End user experiences a problem 2) End user refers to training manuals or documentation If unable to resolve… 3) End user contacts key user for assistance. 4) Key User reviews issue & advises end user of solution. If unable to resolve… 5) key user / end user open call Kraft Help Desk to open a ticket 5) Helpdesk gathers necessary info from key/end user and routes ticket to appropriate queue If Critical or High issue, Helpdesk calls SAP On-Call Support 6) Makes contact with user to acknowledge ticket and/or get additional information 7) Continues to work with the user until issue is resolved Support Team Leads, On-Duty SAP Support Manager (ODSM), Customer Satisfaction Manager, and Support and Operations Lead monitor and manage critical situations and escalations

Tickets Related Definitions We classify our tickets, or Service Requests as: RIR=Request for Incident Resolution = Issue, Defect or Bug RFI =Request for Information = “How-to” RFC =Request for Change = Enhancements, Small Changes Routine RFCs – very small changes needed to keep business running (no design change) Non-Routine RFC – small enhancements to improve design or functionality Traditional Critical/High/Medium/Low priorities are used when to classify Service Requests Ticket based SLAs are used to set targets and measure team’s performance per service request time and priority. Time to Respond Time to Propose a Solution Time to Provide a Solution Time to Close Additional standards set around ticket management, including: Standard E-mail Communication Templates Status update frequency objectives

From Project to Support

Overview Hypercare Steady State Support Hypercare begins immediately after a project’s go-live / deployment and lasts 4-8 weeks During Hypercare period, Project team is responsible for support and defect resolution. Informal issue reporting process is used, and issues are logged in project’s Testing Defects (Mercury QC) tool. Steady State Support Following Hypercare period, functionality and/or location is transitioned to Steady State Support. Help Desk ticket process and associated steady state support tools are used to log and manage issues Hypercare to Steady State Support Transition A standard process is used to facilitate transition from Hypercare to Steady State A set of criteria is used to assess readiness for move to Steady State Support

Transition Process The following standard plan* is used for transitioning from Hypercare to Support: * Above timeline is for Deployments, Releases have slightly longer Hypercare

Transition Criteria We use a set of criteria to assess readiness for transition to Support, in the areas of: Defect Management Performance of System Design Knowledge Transfer Support of On-Going Transactions Business Continuity Plan Communication Tools and Procedures Examples of specific criteria include: No Critical defects remain open, minimal High defects and minimal OSS Messages remaining open All in-scope business transactions have been executed at least once, successfully in Production (e.g. Month End Closing) All Cutover security access been removed Solution Manager documentation moved from Implementation to Global Template project Knowledge transfer from the project team to support organization is complete

Application Change Management

SAP Transport Process Transports to Production Environment Scheduled Move to Production occurs 2 times per week Move to Production Freezes are in place during Regression Testing, Go-Live and Quarter and Year-End Periods (emergency transport process available). All transports follow approval workflow, with final approval from the SAP Change Control Board (CCB), pending quality validation Transports to Non-Production Environments Occur automatically per defined workflow – 6-12 times per day depending on target environment RevTrac Tool (by Revelation Software) recently implemented to support Transport Process Significantly reduced manual transport related activities Automatic more to target environment per defined workflow Custom workflow per object type/project/support

SLAs, KPIs and Metrics

SLAs, KPIs and Metrics A set of end-to-end SLAs, KPIs and Metrics have been established to monitor performance and overall health of SAP Support and Operations: Ticket Resolution Service Level Agreements (SLAs), including: Time to Respond Time to Propose a Solution Time to Provide a Solution Time to Close Key Performance Indicators (KPIs), including: Open vs. Closed Support Requests % Tickets Managed by Partner Staff Support Requests Aging Average Time To Resolve Incident Key Ticket and non-Ticket Metrics, including: Weekly and monthly ticket Summary by team, process, severity, location Processes Health Metrics System performance and usage summaries Volume of Transports to Production OSS Notes Average End-to-End Process Time Tickets Requiring Rework Time to complete Root Cause Analysis End User Satisfaction

Sample Reports Tickets by Severity - Sample Open vs. Closed Change Requests- Sample Ticket Aging by Team - Sample Open vs. Closed Incidents - Sample Transports to Production - Sample YTD Tickets by Team - Sample YTD Ticket Aging by Team - Sample

Customer Satisfaction

Background and Approach As Support Organization, Customer / End User Satisfaction is our top priority! We measure Customer Satisfaction via: Bi-Annual General Customer Satisfaction Survey Monthly ticket specific Pulse Survey Improvement Action Plans to improve executed following each survey Survey questions focus on assessing Support Team’s: Communication Skills Business process understanding Ticket resolution timeliness and quality Help Desk experience Overall satisfaction and feedback A full time position of Customer Satisfaction Manager established, with focus on Customer Satisfaction Improvement initiatives Visits to supported sites and locations Relationship building with the end users Follow-up with dissatisfied users Escalation point for users related to customer service Informal feedback and discussion sessions with the end users

Best of Global Best of Local

Best of Global… best of Local What is GLOBAL in SAP Support and Operations? Support model, processes and tools are consistent globally Global Support and Operations Lead to ensure global consistency and synergies Most SAP business processes and associated configurations (One Language Multiple Dialects) What is LOCAL in SAP Support and Operations? Unique differences due to varies level of maturity Adaptation to local requirements (One Language Multiple Dialects) Local Support and Operations Lead for each region Select unique local customizations (i.e. tax/legal requirements, interfaces, etc.) One Language Multiple Dialects A governance model providing processes and tools to enable global and regional governance of the strategic SAP systems at Kraft Foods ‘One Language’ implies, having at the core : harmonised business processes, SAP elements and systems architecture where beneficial ‘Multiple dialects’ would imply non-core components and processes that need to be different, in order to accommodate local requirements

Summary and Key Takeaways

Summary and Key Takeaways Kraft Foods’ SAP footprint continues to expand with project Catalyst SAP systems are maintained by Global SAP Operations and Support Organization Kraft Foods and Strategic Partner teams work together to ensure SAP systems are operating properly Transition from Hypercare to Support processes facilitate smooth transition from Project to Support SLAs, KPIs and Metrics are used to monitor and manage health of Support and Operations Organization, and SAP systems overall. Transport tools and processes ensure facilitate solid application change management processes Strong focus on Customer Satisfaction is key for success Maintaining global consistency and efficiencies while providing strong local support is key to success

Thank you!