Gearóid Doheny, Chairman, Ireland Special Interest Group Introduction and Welcome.

Gearóid Doheny,

Chairman, Ireland Special Interest Group

Introduction and Welcome

Introduction to Glanbia

Glanbia and SAP

Ireland Special Interest Group

Introduction and Welcome

• International Consumer Foods, Food Ingredients and Nutritionals Group.

• Headquartered: Kilkenny, Ireland.

• Operations: Ireland, UK, Germany, USA and Nigeria; 4,000 employees.

• Three Operating Divisions: Agribusiness, Consumer Foods and Food Ingredients.

Introduction

• 2004 Group turnover €1.8 billion; operating profit €83.5 million (1).

• Listed Irish and London Stock Exchanges

• Market capitalisation c. €900 million.

(1) Continuing operations

Agribusiness

The key linkage between Glanbia and its Irish raw materials supply base

MARKET POSITIONS

Feed milling/marketing

70 retail branches

Fertilizers

Grain trading

Farm inputs

Consumer Foods

Includes Irish Consumer Foods, Fresh Pork and UK Mozzarella Cheese JV

MARKET POSITIONS

No. 1 cheese manufacturer

No. 1 pigmeat processor

Market leader in liquid milk/cream/yogurt

No. 1 European Pizza cheese supplier

Food IngredientsDivision includes US and Irish ingredients operations and developing Nutritionals business

MARKET POSITIONS

No. 1 producer of US barrel cheese

No. 1 whey protein isolate producer

No. 3 lactose producer

No. 4 American cheddar cheese producer

--------------------------------------------------------------------No. 1 supplier of customised nutrient pre mixes

No. 1 dairy processor

and SAP

Introduction / Background

• Commenced with SAP in 1998 – established Glanbia Core Model

• Program of SAP Roll-outs since then:

– The Cheese Co- UK Foodservice - UK

– Meats Ireland Food Ingredients Ire

– Dairies - Ire Chilled Foods - Ire

– Cheese UK (JV 50/50) Foods Inc - US

– SWC – US ( JV 50-25-25 Oct 2005) Nutritionals – Europe/US

– Agri - Ire ( 2006)

• Established– Shared Services (Finance AR, AP, Travel Mgt, Payroll (non SAP) )

– Group Purchasing

Introduction / Background

• 24 x 7 operation• 1,200 SAP users• SLA with our business units – 99.97% in 2005• Managed Services HP, BT• Group IT staff of 65 people – business focus• Work through key relationships with business personnel• Operate a certified SAP Customer Competency Centre• Operations in Ireland, UK and US

• Group IT merged with SSC in 2005 to form ‘Glanbia Business Services’Group IT merged with SSC in 2005 to form ‘Glanbia Business Services’

Structure

Glanbia Business Services – Tony Minogue

Business Solutions – Gearóid DohenyDevelopment of SAP and non-SAP Business Systems & BI

Technology Services – Fergal WallI.T. Infrastructure / Support / Security / Managed Services mgt

Programme Management – Paddy MorganStructures and methodologies for Major Initiatives

Financial Services – Mike DavisFinancial Systems Development, Financial Control, Operational Svcs

Customer Services – Eamonn WalshAccounts Receivable, Cash Collection, Query Management

Payment Services – Michael HoganPayroll, Accounts Payable, Travel Management

US IT Business Services – Niamh KellyCo-ordinating Delivery and Implementation of IT Systems / Services in US

IT Elements

Transactional Base

Transaction Support

Finance, Purchasing, Stock Management, Sales & Distribution

OperationsQuality Management, Production Planning, Plant Maintenance

EDI, Bulk Printing, Data Capture, Quest, Web EDI, Document Management

Cus

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Rel

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Supply

Chain

Business Intelligence

IT ServicesDesktop, Network, Servers, Management

Business Performance Platform

Business A

ctivity Monitor

Business Performance Platform (BPP) - Capabilities Powered by SAP CRM

Advanced Up-selling / Cross-selling; Complaints Handling with SLA and escalation;Call Centre Management: Call Lists, Auto-escalation, Productivity reporting etc

Powered by SAP CRM, MobileVisit Planning; Objective Setting;Customer Contact Management, Structured Intelligence Gathering, Remote Reports

Powered by SAP SEM Business Planning and Simulation – Sales ForecastingConsolidation - 2006

Powered by SAP BWService Level Reporting for Sales and Complaints; Sales Planning reportsTransportation Costing analytics

Powered by SAP Financial Supply ChainUnder assessment currently: Collections Management; Dispute Management; Collaborative Billing

Platforms

• ERP – SAP Enterprise 4.7• Upgrade from 4.0B in 2004

• BI – SAP BW 3.5• Upgrade from 3.0b5 in 2005.

• CRM – SAP CRM 4.0• Partnership with SAP in developing Ver. 4.0 Order Capture for Consumer Foods sector.

• SEM – SAP SEM 3.1b• Upgrade to 4.0 planned, 2006.

Challenges

• Standardisation of Transactional Base processes generally achieved• Beginning to progress Operational processes• Exploitation of Opportunities around CRM & SCM• Gap on performance management systems ( CPM vision)

• Business Intelligence, Planning Forecasting• Manufacturing Execution Systems

• Agile response to J.V’s and Acquisitions• E-enablement and process automation• Increasingly complex architecture / landscape / skill sets• Provide Low Cost Services / Add Value in a High Cost economy !Provide Low Cost Services / Add Value in a High Cost economy !

Ireland Special Interest Group

Opportunities

• Collaboration• Sharing Knowledge• Access to SAP Experts & SAP Strategy• Lobbying SAP

– Including Link to SAP Development requests

• Networking / Establishment of Technical Forums– BASIS - Technical BW– BW Users - Finance automation– ABAP / Developer Forum - Others…..

• Other possibilities:– Potential for sharing e.g. development resources ?– Collaboration on end-user training mechanisms ?

Challenges

• Needs to be more than just “4 meetings a year”• Need active support and personal involvement from each organisation• Diversity of Industries / Sectors

– Identify and focus on areas of commonality– Potential for smaller ‘sub-communities’ through networking

• Pressures of the ‘Real Job’– “Important Vs. Urgent”

• Keep the momentum going !

Today

• Introductions• Craig Dale – An Introduction to the User Group• Open Forum Discussion

– Fuelled by Questionnaires– How to get the most out of this opportunity– Build picture of Purpose and focus of Ireland User Group– Topics for future meetings– Other initiatives

• Richard Brown – ‘Roadmap from BW to BI’• AOB, Feedback and close

Thank You