SAP for Retail Technology Innovation Executive Panel October 24, 2007

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1. Introductions2. Questions/Answers From Panel3. Questions from the Audience

Agenda

Don Beaver Senior Vice President and Chief Information Officer

Donald Beaver joined PetSmart in May 2005 as Senior Vice president and Chief Information Officer. Don came to PetSmart from H-E-B Grocery Company where he held the position of senior vice president and CIO since 1999. Prior to that, he served 14 years at Allied Signal Aerospace, Inc. Beaver started his career at Eastman Kodak. He is a pet parent to two cats, Carly and Chloe.

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Ted Jackson Vice President of IT and Chief Information Officer

Ted Jackson is the Vice President of Information Technology and Chief Information Officer for Sport Chalet. Ted joined the Company in 1999 and has over 34 years of retail experience. In that time has held various positions in operations, merchandising, and IT and worked for multiple retailers including Sport Chalet, Safeway Stores, Junior's Tools, and Fred Meyer Stores. In addition, Mr. Jackson was a consultant in the retail practice at KPMG Peat Marwick LLP.

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Dan Moen Senior Vice President and Chief Information Officer

David Edwards DVP Business and Technical Alignment

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Neil McCarthy Vice President of IT and Chief Information Officer

Neil McCarthy is the Vice President and Chief Information Officer for Wawa, Inc., a chain of specialized convenience stores with more than 15,000 employees and 560 stores in five states. He has over twenty years of experience in the retail industry, twenty of which has been in IT and five in Store Operations. Prior to being the CIO, he was the Director of Business Solutions, served with Wawa as a project manager in the Store Automation technology group, Client Support Programming Manager and as a Software Engineer. Before joining the IT organization, Neil worked in Store Operations as a store manager.

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Rob Kreft Vice President SAP Retail

Rob Kreft is Vice President of U.S. retail consulting practice. He has been involved with SAP Retail for about 13 years. Prior to joining SAP, Rob worked for Deloitte Consulting and IBM in their retail practices. Prior to consulting, Rob had various positions at Wal-Mart for 7 years. He started in store operations for SuperCenters, ultimately moving into IT as a Director of Supply Chain.

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Question

qSome time ago you went through an exercise of evaluating the pros/cons of best of breed vs. ERP approach.

qWhat was your decision process?

qCan you talk to application lifecycle, integration, and application management?

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Question

q In your recent implementation you selected some forms of Ramp-up software, can you talk to your experience?

qWhat has your experience been with SAP and enhancements or custom software?

qHow much custom code do you have and do you believe you will retire it over time?

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Question

qCurrently you are at approximately 420 stores in your rollout out of 570. There are many options and advantages/disadvantages for each.

qCan you talk about your roll-out process?

qLessons Learned?

qWhat would you do differently today?

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Question

qYou went through an initial implementation in 1999 and were one of our first customers. You are now going through an upgrade.

qCan you talk about your decision process for the upgrade, as well as how you structured your project?

qWhat elements are key to success?

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Question

qYou are in the last stages of your implementation, scheduled to go-live in January-February.

qCan you talk about the resourcing effort required, including skillsets for your size implementation?

q If you had to do it again, what would you have changed?

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Question

qHaving just finished most of your rollout, supporting and managing new initiatives can be a challenge.

qCan you talk about your support model for SAP and talk about building and managing the skillsets required?

q Can you talk to new initiatives and what the plan is to support.

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Q&A Thank You