PWC Vantagepoint 2013

Diageo Fast Close case study

Vision

2

Global foundational data structures Profit Centres, Chart of Accounts, Diageo Reporting Hierarchy,

Customer Hierarchy, Brand Hierarchy, Legal Entity

SAP Non-SAP

Global business warehouse (BW)

BPM Reporting BFC

(Group consolidation tool)

Aligned data structures

Monthly management reporting External statutory reporting

20 days annually, 3 days monthly, no manual intervention, seamless legal/management reporting

FSR (Fin Rep)

OTP (Tax rep)

Why are we doing the work?

Earlier interim and annual results announcements will enhance the confidence of our investors and enable them to finalise their forecasts for the new reporting period

By improving the reporting process and creating efficiencies through less reliance on manual intervention, our finance teams are better able to help drive improved business performance in markets.

Single source of data across reporting processes; aligned data structures; greater level of automation and improved data quality with less opportunity to correct data and hence driving right first time behaviour.

Cost savings driven by less manual intervention, decommissioning of local reporting systems and leveraging global asset.

Profit centres give us visibility of management unit at the transaction level and end to end ownership of a complete P&L, balance sheet and cashflow and enables seamless transfer of data between systems.

3

Fast close – Initiated change

Transactions Period

end close Consol External reporting

Pre close planning

Day 56

FY 11

Sub ledger close

External reporting Day 31

FY 13

Transactions Period

end close

Consol Pre close planning

Sub ledger close

Promote a standard timeline to drive efficiency across all reporting units

Introduce automation to increase data quality “one version of the truth” and consistency, reducing low value activities

Provide a good degree of sponsorship and motivate people towards the goal

4

• Process coordination and sponsorship

• P10 Hard close and change to the audit process

• FSR implementation

•Organics

• Information requests to support external reporting brought into monthly process

•OTP and Tax process to P10

•Brought fwd Close date

• Sponsorship and management focus

• System performance

• Process improvement e.g. accruals process; journals, recharges

•Brought fwd non month end dependent tasks

• Fixed assets and payroll close earlier

• Focus on systems stability

• Communication and engagement

•End to end timetable

•Enforce adherence to all timelines- use of league tables

Transactions Period

end close Consol External reporting

Pre close planning

Day 56

FY 11

Sub ledger close

External reporting Day 31

FY 13

Transactions Period

end close

Consol Pre close planning

Sub ledger close

Fast close – Initiated change

5

BPMF introduced profit

centres (PC) into SAP

Consistent global data

structures agreed , hierarchies

defined

Global Chart of Accounts

(phase 1) and Diageo

Reporting Hierarchy (DRH)

goes live

Timing FY 10 FY 11 FY 12 FY 13 FY 14 FY15

BPM journey kicks off –

agreed business needs with

markets and FLT

Decision taken for

MicroStrategy to be global

reporting tool

WE, APAC, NAM agreed to be

first activation markets, project

teams put in place

Fast Close programme kicks

off – delivers 31 day year end

close dry run for F12 results

New GL goes live enabling

access to PC data - Validation

work kicks off with markets

Core Demand report suites launched in

initial activation markets (to enable PC) and

plan for further rollout

Start reporting by profit centre from

BFC; P&L performance management

transitions to PC

Fast Close delivers interim

results on 31 January & year

end results on 31 July

Move to full performance

management by PC globally to

include BS and Cash flow

Complete build for full

Reporting suite (BS, WC +

Supply, Corporate + new

technology) and roll out to

all remaining markets

Data/ Profit

Centres

Fast Close

BPM Reporting

Tax reporting design/ plan for

automation.

Implement tool to accelerate production of annual report ,

press release

Automated Tax reporting.

Further automation and

interfacing with BFC to

accelerate timeline, data

quality and efficiencies

Tax & Disclosure

Mgmt

Implement E2E timetable

Successful P10 Hardclose

Accelerated P12 timeline

Further changes to deliver

1day saving in GL

Enable regular stat reporting

Year End Strategy

What’s Next?

Analyse phase to increase

level of automation into BFC

from SAP ledgers

Design to auto Organics

Define Phase 1 & Phase 2 automation

to deliver 1 day saving,

Phase 1 Go Live

Automate Organics calculations

Deliver Phase 2 to enable

target of optimal automation

BFC End State

Fast close - Journey so far

6

BPMF introduced profit

centres (PC) into SAP

Consistent global data

structures agreed , hierarchies

defined

Global Chart of Accounts

(phase 1) and Diageo

Reporting Hierarchy (DRH)

goes live

Timing FY 10 FY 11 FY 12 FY 13 FY 14 FY15

BPM journey kicks off –

agreed business needs with

markets and FLT

Decision taken for

MicroStrategy to be global

reporting tool

WE, APAC, NAM agreed to be

first activation markets, project

teams put in place

Fast Close programme kicks

off – delivers 31 day year end

close dry run for F12 results

New GL goes live enabling

access to PC data - Validation

work kicks off with markets

Core Demand report suites launched in

initial activation markets (to enable PC) and

plan for further rollout

Start reporting by profit centre from

BFC; P&L performance management

transitions to PC

Fast Close delivers interim

results on 31 January & year

end results on 31 July

Move to full performance

management by PC globally to

include BS and Cash flow

Complete build for full

Reporting suite (BS, WC +

Supply, Corporate + new

technology) and roll out to

all remaining markets

Data/ Profit

Centres

Fast Close

BPM Reporting

Tax & Disclosure

Mgmt

Implement E2E timetable

Successful P10 Hardclose

Accelerated P12 timeline

Further changes to deliver

1day saving in GL

Enable regular stat reporting

Year End Strategy

What’s Next?

Deliver Phase 2 to enable

target of optimal automation

BFC End State

Tax reporting design/ plan for

automation.

Implement tool to accelerate

production of annual report ,

press release

Automated Tax reporting.

Further automation and

interfacing with BFC to

accelerate timeline, data

quality and efficiencies

Analyse phase to increase

level of automation into BFC

from SAP ledgers

Design to auto Organics

Define Phase 1 & Phase 2 automation

to deliver 1 day saving,

Phase 1 Go Live

Automate Organics calculations

A focus on BFC End State

7

BFC End State – Journey

Time

dependency

Implement profit centres in

BFC for P&L reporting

Implement profit centres for

BS and Cash reporting

Move performance management framework to profit centres

Phase 1 Automation

Implement BW /FIM automation tool, to implement Global rules & automate

loads of PC for P&L

Go Live P3 FY14

Phase 2 Automation

Maximise Automation to :

•Allow for increased PC reporting requirement

•Minimise manual input and achieve

time savings

•Focus on analysis and not

reconciliation

Align data structures in BPM and BFC

( DRH, Brand)

Data Quality

Implement legal entity structure

FCU

Time

Automate organic calculations in

BFC

Go Live P3 FY13

FY13 FY14

8

BFC End State – Achievements so far

Data & Reporting • Alignment of data structures by designing and building profit centres in BFC • Supporting alignment to BPM with Profit Centre reporting Automation • Implementation of a new automation solution (BW and FIM) • Implemented the audit ID to provide a clear audit trail of automated data • BFC Drill to source functionality • Significant reduction of the number of exceptions to the global design • Increase in global rules driving consistency • Improved and transparency in reconciliation Organics • Automation of the organics calculation • Ability to perform the organics calculation to trading profit (this is currently

performed to CAAP) • Ability to perform the organics calculation on a monthly basis

9

Fast Close focus for FY 14

10

Q&A

11