Abbott s SAP Story The beginning of our journey.

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1 Abbtt s SAP Stry The beginning f ur jurney.

2 Our Stry Abbtt Overview Wh We Were Hw the Jurney Began Finding the Silver Lining The Prgram Staying the Curse Where d we g frm here? SAPPHIRE Abbtt SAP Cmpany Cnfidential 2013 Abbtt 2

3 Abbtt Evlving Prtfli f Grwth Business Cmpany Facts Sales Gegraphy Funded in 1888, Dr. Wallace C. Abbtt ~38% Emerging Markets Chairman & CEO Miles White $22 Billin Net Sales acrss 150 cuntries ~30% United States 70,000 emplyees ~32% Ex U.S. Develped Wrld Nutritin Diagnstics Medical Devices Established Pharmaceuticals 6.5 B Sales #1 in Adult Nutritin #1 in U.S. Pediatric 4.3 B Sales #1 in Immunassay Diagnstics #1 in Bld Screening Leading Pint f Care Platfrm 5.5 B Sales #1 in Drug eluding stent, metal stent #1 in LASIK #2 in Cataract 5.1 B in Sales 60% Emerging Markets $630M Market #1 Klacid, Cren, Duphasn * 2012 Sales SAPPHIRE Abbtt SAP Cmpany Cnfidential 2013 Abbtt 3

4 Wh We Were Business Dynamics & System Landscape Order t Invice 12,000 rders/day 50% electrnic 10 systems (inc mainframe) New Prduct Setup 37 days 15 departments Manual 5700 users/14,000 SAP rles 4TB data/ 62MB never archived N Glbal Chart f Accunts 857+ direct interfaces 156 direct/250+ indirect legacy systems Analytical Tl Excel extracts SAPPHIRE Abbtt SAP Cmpany Cnfidential 2013 Abbtt

5 Hw did ur jurney begin? Fragmented prcesses Discntinuing SAP Supprt SAP Other ERP Unstable Lack f scalability Other Legacy Inefficient deplyments ERP Landscape Drivers External Drivers (Y2K) Mergers & Acquisitins Fcus n Divisinal needs Overdue Upgrades SAPPHIRE Abbtt SAP Cmpany Cnfidential 2013 Abbtt 5

6 Finding the silver lining Opprtunity fr intrspectin and reinventin Cmmnality Respnse % f Prcess 0% 20% 40% 60% 80% 100% Lw Cmmnality Medium Cmmnality High Cmmnality Order t Cash 9% 18% 73% Supply Chain Planning & Executin 50% 50% Operatins - Manufacturing 11% 56% 33% Operatins - Quality 48% 52% Prcure t Pay 19% 81% Recrd t Reprt 23% 77% SAPPHIRE Abbtt SAP Cmpany Cnfidential 2013 Abbtt 6

7 The Prgram.fundatin t sustain existing business imperatives Largest IT investment in Abbtt Scpe ECC SRM ewm Cgns By the Numbers Vistex Vertex capps (Master Data) TIBCO ~ Prgram (Business, IT, Cnsultants) plus ffshre resurces ~ 500 Glbal subject matter experts Current end users 12 Divisins/crprate functins 17 Gegraphic lcatins Hw We Did It Clear Gvernance Strng supplier partnerships Key perating decisins/guiding principles Weekly prgram/mnthly executive leadership meetings Team C-Lcatin Dedicated change management Cmmand centers fr G-Lives Expanded cafeteria services Stay calm, be nice SAPPHIRE Abbtt SAP Cmpany Cnfidential 2013 Abbtt 7

8 Staying the curse Adjusting fr curves manufacturing deplyments SAP Clned and Separated Abbtt Separatin SAP Ready fr Cmpany Separatin 11 deplyments 3 technical releases Built glbal template with 113 integrated prcesses Cmpany Separatin annunced SAPPHIRE Abbtt SAP Cmpany Cnfidential 2013 Abbtt 8

9 Staying the curse Benefits Scale and agility driven by fundatinal design Ability t execute and accmmdate M&A Cmmnality f business peratins Supprt large scale business transfrmatin Future leverage t ptimize assets / grw tp line Retire redundant legacy landscape SAPPHIRE Abbtt SAP Cmpany Cnfidential 2013 Abbtt 9

10 Where d we g frm here G fast Ability t execute, stabilize and standardize existing business New level f business leadership t enable business transfrmatin Simplificatin and prcess adptin FUNDAMENTALS Business Decisin-Making Fcus n Business Operating Mdel Bradest scpe f SAP Methdlgy & Lgistics Risk Management Data, Data, Data Landscape Management Ec-system f SAP Integratin and BI SAPPHIRE Abbtt SAP Cmpany Cnfidential 2013 Abbtt 10

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