October 2007

1. Enabling Spend Reductions and a More Strategic Procurement Function at Burger King October 2007

2. Approach Used for Building Business Case September – October 2007 Understanding of Industry Landscape Understanding of BKC Issues in Procurement Value Hypotheses Creation Opportunities and Business Case Validation Recommendations & Next Steps • Leveraged experience to develop initial hypotheses • SAP expertise within Supplier Relationship Management • Researched BKC current situation • Analyst reports • Interviews with Business & IT • CEO & other executive presentations • Industry research • Developed initial hypotheses • Interview BKC employees • Identify typical areas of opportunity • Analysis of pain points • Customer success stories • Validated hypotheses • Industry best practices • BKC performance analysis • Business process analysis • Developed high-level business case • Potential Value • High-level deployment plan • Risk mitigation plan Burger King Team SAP Team

3. Executive Summary Opportunity Analysis and Benefits Mapping Customer Success Stories

4. BKC’s Key Procurement Business Challenges Implications • Higher-than-necessary Spend & Lower Profitability • Lower Employee Productivity

5. Key Opportunities to Support BKC Key Opportunities Key Benefit Enablers • Ability to electronically capture, model and enforce procurement business processes • Automated purchasing approval and tracking process with full auditing capabilities • Automatic, consistent, 3-way matching process, only requiring humans to get involved when there are exceptions • Automatic spend auditing • Purchasing and accounts payable fully integrated with the rest of the financial processes • Electronic, online catalogs from strategic suppliers • Fully enforced SOD requirements • Evaluate suppliers with a 360-degree scorecard • One single, complete and accurate source of information 1. Contract Management / Strategic Sourcing 2. Requisitioning 3. Accounts Payable

6. BKC Potential Annual Benefits – Procurement • The BKC/ SAP team identified several areas of significant opportunity to enable business transformation and growth at BKC 1 These savings estimates assume that Procurement will only “touch” $23M in total spend. However, most likely this procurement initiative will touch a larger piece of the estimated $220+M in annual spend at BKC, driving significantly larger annual savings. $220+M arrived at by adding $105M in non-compensation related G&A spend (30% of $350M), and between $120M and $150M in Capital spend. Strategic Benefits • Better ability to increase % of spend “touched” by Procurement organization and realize all the spend reduction potential across BKC • Increased ability to analyze procurement spend and make more strategic decisions

7. Strategic Benefits – Enabling Strategic Procurement at BKC • Procurement resources at BKC will be able to spend more time and effort on Expertise-based and Strategy-related activities • Results from the ASUG/SAP SRM benchmarking survey1 showed that first quartile companies allocate 62% of their procurement FTE’s to Expertise-based activities, while average companies only allocate 28% to the same activities • The same ASUG/SAP SRM benchmarking survey showed that organizations with a single enterprise-wide procurement system have 54% fewer FTEs per billion in spend than those with a fragmented system landscape 1 In the first quarter of 2006, Americas’ SAP Users’ Group (ASUG) and SAP conducted a benchmarking initiative in supplier relationship management and procurement. Taking part in the first phase of the survey were 63 companies in the chemical, consumer products, utilities, high tech, insurance, telecommunications, and other industries. For more details on the survey, please go to www.asug.com

8. Leading Procurement Organizations are already reaping the Benefits from SAP SRM • 1st quartile Procurement organizations surveyed are sourcing over 50% of their spend through electronic tools such as e-auctions and e-RFXs • Average savings for 1st quartile Procurement organizations from using electronic tools to manage their spend processes (i.e. e-auctions and e-RFXs) are 19% for direct spend, 20% for indirect, and 34% for services spend.

9. Project Costs ($MM)

10. Projected Return On Investment Over 5-Year Period – Low Estimate Cost Scenario Projected NPV of incremental [benefits / costs] ($ million) A 5 year $3.8 M cumulative operating income benefit can be achieved at an estimated cost of $1.6M. This assumes that all recommendations are implemented in a timely fashion. • Benefit Assumptions: • Pre-tax, 5-year cash flow projections • Benefits begin a quarter following go-live and are ramped up gradually over time • Modified IRR calculation assumed a 7% reinvestment rate Assumptions: 1. Benefits based on data from Burger King interviews 2. Benefits are be realized gradually due to factors such as user acceptance, training, and business process change 1 These savings estimates assume that Procurement will only “touch” $23M in total spend. However, most likely this procurement initiative will touch a larger piece of the estimated $220+M in annual spend at BKC, driving significantly larger annual savings. $220+M arrived at by adding $105M in non-compensation related G&A spend (30% of $350M), and between $120M and $150M in Capital spend.

11. Projected Return On Investment Over 5-Year Period – High Estimate Cost Scenario Projected NPV of incremental [benefits / costs] ($ million) A 5 year $3.8 M cumulative operating income benefit can be achieved at an estimated cost of $2.5M. This assumes that all recommendations are implemented in a timely fashion. • Benefit Assumptions: • Pre-tax, 5-year cash flow projections • Benefits begin a quarter following go-live and are ramped up gradually over time • Modified IRR calculation assumed a 7% reinvestment rate Assumptions: 1. Benefits based on data from Burger King interviews 2. Benefits are be realized gradually due to factors such as user acceptance, training, and business process change 1 These savings estimates assume that Procurement will only “touch” $23M in total spend. However, most likely this procurement initiative will touch a larger piece of the estimated $220+M in annual spend at BKC, driving significantly larger annual savings. $220+M arrived at by adding $105M in non-compensation related G&A spend (30% of $350M), and between $120M and $150M in Capital spend.

12. Solution Components – Procurement • Contract Management • Strategic Sourcing • Requisitioning • Accounts Payable

13. Executive Summary Opportunity Analysis and Benefits Mapping Customer Success Stories

14. Procurement > Contract Management – Strategic Sourcing Pain Points SAP Solution Enablers Contract Management - Category Management • Provide detailed global spend analytics – single repository of all spend • Provide consolidated spend reporting that allocates historical purchasing volume to vendors, which can then be analyzed by region, product, etc. • Enable a purchasing system that is integrated with Finance, Controlling, and Supply Chain Management systems • Define a standardized sourcing process for category managers, including role-based dashboards that bring together data to facilitate decision making. • Implement supplier profitability and spend analysis solution to gain real-time visibility to supplier profitability

15. Procurement > Requisitioning Pain Points SAP Solution Enablers Requisitioning • Integrate procurement processes to other core applications – budgeting, asset management, project management, etc. • Enable automatic workflow through procurement processes to reduce errors and increase efficiencies • Provide easy to use, pre-defined procurement transactions for different categories of spend, i.e., services • Allow integrated catalog management • Provide configurable business rules to manage by exceptions on procurement workflows • Combine services and materials to better define the total cost of the service

16. Procurement > Accounts Payable Pain Points SAP Solution Enablers Financial Settlement • Automate invoice reconciliation to reduce manual effort, increase data accuracy and allow more time to focus on solving exceptions • Evaluate suppliers with a 360-degree scorecard • Single, complete and accurate repository of information for all financials, including Accounts Payable and Purchasing • Electronic invoice receiving capabilities and automatic matching and payment process, with automatic notification to appropriate parties of exceptions and inconsistencies Material Receipt • Enable automated central and desktop receiving • Automate returns process. Capture return reasons for analysis • Allow vendor-initiated confirmation documents, service entry and approval

17. Procurement > Accounts Payable Pain Points SAP Solution Enablers

18. Procurement  Potential Benefits Assumptions: 1 From BKC interviews 2 Estimated savings provided by BKC team and validated by Ana Diaz 5 From Salary.com, average salary for a P.O. Coordinator in Miami is $55K. Confirmed by BKC Strategic Benefits • Reduced supplier base, improving performance and negotiation leverage and reducing associated overhead • Increased ability to identify the areas with most potential for procurement savings • Increased percent of suppliers on contract and percent spend compliance • Higher percent of self service transactions and reduced procurement cycle time Benefits Documented by SAP customers • Xerox reduced indirect supplier spend in 25% over a 3-year period through contract compliance and a rigorous electronic purchasing approval process • Leveraging SAP SRM Seattle Public Schools reduced maverick spend by 60-70% 1 These savings estimates assume that Procurement will only “touch” $23M in total spend. However, most likely this procurement initiative will touch a larger piece of the estimated $220+M in annual spend at BKC, driving significantly larger annual savings. $220+M arrived at by adding $105M in non-compensation related G&A spend (30% of $350M), and between $120M and $150M in Capital spend. Source: SAP analysis

19. Executive Summary Opportunity Analysis and Benefits Mapping Customer Success Stories

20. Gen-Probe Prepares for Growth with mySAP™ Business Suite “Our SAP applications are incredibly powerful and give us unlimited growth potential.” Dave YenterManager, Cost AccountingGen-Probe Incorporated • Challenges and Opportunities • Prepare for aggressive growth and increasing business complexity • Drive operational excellence • Meet regulatory requirements (FDA, GMP) • Eliminate unsupported legacy systems and simplify software landscape • Objectives • Consolidate systems into a single ERP application • Facilitate a “single version of the truth” • Streamline and improve key processes in supply chain, customer service, order management, finance and IT • Create a platform to support unlimited growth Implementation Highlights • On-time, on-budget implementation in 11 months • Minimal customization • Why SAP • Understanding of industry best practices • Support for regulatory compliance (FDA, GMP) • Long-term, scalable platform • Clear and consistent vision for the future of the application • Good cultural fit • Benefits • Total projected benefits of US$13.5 million over 5 years • Project ROI of 63% • Reduced inventory levels by 14% • Improved shipping throughput by 51% • Improved productivity in finance, quality management and purchasing (5% to 10%) • Improved ability to accommodate growth and complexity • Improved performance measurement, to facilitate continuous improvement • Reduced risk through better auditability

21. Greenheck Boosts Productivity with SAP “The openness of the SAP NetWeaver technology platform ensures that our systems will support our international expansion well into the future.” Don Brekke Vice President of Information Technology Greenheck • Challenges and Opportunities • Legacy system unable to support growth • Inflexible and inefficient IT infrastructure • Limited ability to manage complex product configuration information • Proliferation of informal workarounds • Objective • Position the company for growth • Implementation Highlights • Strong focus on organizational change management and training • Composed a solid team of implementation partner and in-house business experts • Used business intelligence tools to import reports • Why SAP • Integrated, industry-focused solution • Support for complex manufacturing • Robust software for configuring product variants • Flexibility to meet future needs • Benefits • Improved visibility into the business with better and more timely access to information • Streamlined production processes • Better coordination of work across multiple plants • 10% improvement in factory scheduling • 15% improvement in on-time shipping • 36% improvement in purchasing productivity

22. ROHM AND HAAS Simplifies Global Complexity with SAP