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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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