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 Ingredients Division 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- UKFoodservice - UK – Meats IrelandFood Ingredients Ire – Dairies - IreChilled Foods - Ire – Cheese UK (JV 50/50)Foods Inc - US – SWC – US ( JV 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 Doheny Development of SAP and non-SAP Business Systems & BI Technology Services – Fergal Wall I.T. Infrastructure / Support / Security / Managed Services mgt Programme Management – Paddy Morgan Structures and methodologies for Major Initiatives Financial Services – Mike Davis Financial Systems Development, Financial Control, Operational Svcs Customer Services – Eamonn Walsh Accounts Receivable, Cash Collection, Query Management Payment Services – Michael Hogan Payroll, Accounts Payable, Travel Management US IT Business Services – Niamh Kelly Co-ordinating Delivery and Implementation of IT Systems / Services in US

IT Elements Transactional Base Transaction Support Finance, Purchasing, Stock Management, Sales & Distribution Operations Quality Management, Production Planning, Plant Maintenance EDI, Bulk Printing, Data Capture, Quest, Web EDI, Document Management Customer Relationship Supply Chain Business Intelligence IT Services Desktop, Network, Servers, Management Business Performance Platform Business Activity Monitor

Business Performance Platform (BPP) - Capabilities l 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 l Powered by SAP CRM, Mobile Visit Planning; Objective Setting; Customer Contact Management, Structured Intelligence Gathering, Remote Reports l Powered by SAP SEM Business Planning and Simulation – Sales Forecasting Consolidation l Powered by SAP BW Service Level Reporting for Sales and Complaints; Sales Planning reports Transportation Costing analytics l Powered by SAP Financial Supply Chain Under 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 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