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Bacardi Limited

Financial Planning and Budgeting Project


Steering Committee Kickoff & Planning
Confidential to The Steering Committee
May 10, 2007

Steering Committee Agenda

Welcome and meeting introduction


Ground rules for our meeting
Participant introductions
Steering committee expectations of the project
Project overview
Project guiding principles facilitated discussion

Corporate requirements
Project scope
Project schedule
Communication plan

Confidential to Bacardi Limited

Introductions
Steering Committee

Terry Brady
Gaston Tano
Jeri Dunn
Mike Brennan
Ken Sutter
Nicolas Imeneuraet
Salvador Campaa
Doug Romain, Capgemini

Project Leadership
Terry Brady / Roger Cash
Chris Miller, Capgemini
Claudia Babich (as needed)

Capgemini Team Members

Debbie Roberts Change Management and Communication


Hannah Coker Lead, Process Design
Prashant Goel Process Design / Vendor Selection Support
Vasu Yedavalli Business Performance Management SME
Hemanth Potluri Lead Software Requirements Evaluation

Confidential to Bacardi Limited

Steering Committee Expectations of the Project


Open Discussion of Expectations and Group Orientation

What you expect from this project


What are the goals for your part of the
organization?
What are the most important unmet needs of
the current processes?
How will you measure the success of this
project?
What do you think our greatest challenges will
be?
What types and frequency of communications
do you prefer?

What the project expects from you your role


Provide project oversight and governance
Provide organizational insight and guidance for
our work at all levels
Ask questions question the project process,
our approach and findings
Make sure that the right people are available
and involved in the project at the right time
Provide leadership and guidance to ensure the
success of the project
Demonstrate leadership through support of the
project approach and outcomes
Take a leadership role for processes in which
you are the Bacardi expert
Ensure that decisions move quickly by making
them a priority
Encourage information gathering and open
discussion throughout the organization

Confidential to Bacardi Limited

Steering Committee Expectations of the Project


The steering committee discussed expectations of the project

Steering Committee Expectations


A simpler, more streamlined process that can be conducted more frequently than is currently possible
Quantitative scenario analysis should be possible in real-time whenever the business needs it
Focus on understanding the right level of detail that everyone should be working with, the organization is
overwhelmed with a level of detail that isnt necessary from a forecasting and budgeting perspective
One standard way of looking at the business one set of numbers
The annual budget process starts so early in the year that the underlying assumptions are not timely by the
time the budget is approved and the fiscal year begins. The process absorbs massive amounts of time and
effort throughout the organization and the outcome is of limited accuracy because of the time that it takes
This project must be process focused and not technology focused. The process for this year should be
improved and should be viewed as an integrated set of processes: top-down and bottom-up
The process and selected supporting technology must be flexible enough that it meets global, regional and
different market needs
Our process should integrated all of the relevant functional areas: sales, operations, supply chain, HR, etc.
Selling change to the markets will not be difficult, they are pushing for the change because of the struggles
that they go through today to prepare budgets and latest estimates. The size of their expectations may be
too large
The biggest challenge will be competing projects and activities for resources

Confidential to Bacardi Limited

The project addresses existing business challenges to deliver


measurable improvements
Business Position and Existing
Challenges

Project Objectives

How Bacardi Will Benefit

Leading practice processes are required


to support upcoming business objectives
including
Global ERP implementation
Change in ownership structure
(going public) and related reporting
requirements
Inconsistent planning, budgeting and
forecasting processes and supporting
tools are in place throughout the
organization
Variety of financial outputs and formats
creates challenges during consolidation
into global view
Lack of rolling forecast renders opaque
view beyond 4th quarter of each fiscal
year
Cash flow forecasting is not integrated in
the P&L forecasting processes and is
done separately from financial
submission process
Accountability is increasing to deliver
growth year-over-year on a
monthly/quarterly basis
What-if analysis capability is
underdeveloped
Foreign exchange impacts make it
difficult for the markets to understand
actual US$ performance vs. local
reporting
Budgeting and reporting are done at the
same level of detail. There are ~620 G/L
accounts, ~320 for the P&L

Document the as-is processes for


financial planning and budgeting at
global, market and regional levels
Assess management reporting
requirements that could be impacted by
the planning and budgeting project,
including defining the link between this
initiative and management reporting
initiative (KPIs)
Share industry leading practices
throughout the global organization
Identify unmet needs in current
processes
Evaluate and develop a roadmap for
process implementation plan
Project will not pre-assume the
implementation of a new software tool

Streamlined processes will allow region


and market personnel to spend time
analyzing business drivers and financial
results instead of spending their time on
administrative manual data
manipulations
Design budget and planning processes
that can focus on the meaning of the
numbers instead of focusing on the
accuracy or validity of the numbers
Improved budget and forecast cycle
time
Increased accuracy and rolling plan
capability
More effective planning at the
appropriate level of detail to manage
change
Improved insight into actual business
performance at the right time
Leading practice processes coupled with
the right supporting tools provides
functionality and enables processes that
are not possible today
Budget submission, review and approval
authority by user hierarchies built from
company organizational structures
Multiple scenario and what-if analyses
are shared with designated individuals
Top-down or bottom-up assumption and
driver modeling across the enterprise or
the region
Integration with any ERP system

Confidential to Bacardi Limited

Project Approach
I. Document
As-Is Process

II. Identify
Business
Requirements

III. Create Roadmap

Overview

Meet with identified regions and


global functional areas to
understand and document current
processes employed for budgeting
and forecasting

Define future business processes


and map requirements to software
capabilities

Create a Roadmap for the


financial planning and analysis
function utilizing all data collected
in the first two phases of the
project

Activities

Conduct workshops with identified


subject matter experts in each
location to:
Communicate project goals
Identify current process steps
Identify process and/or data
needs and improvement
opportunities
Expose SMEs to Leading
Practice concepts

Build and document future


business process vision and
validate with all key stakeholders

Develop process
recommendations with a
proposed implementation
timeline

Deliverables Process definition documentation


for as-is regional, market and
global budgeting, planning and
other in-scope processes
Summary of findings and steering
committee report

Conduct Gap Analysis between


current processes, future
processes and software
capabilities
Develop detailed business
requirements of enabling
technologies
Process Gap Analysis
Technology Gap Analysis

Develop technology
recommendations
Meet with key stakeholders to
obtain additional clarification and
buy in

Roadmap containing
recommended process changes,
including implementation phases
and timelines
Sign off of all key stakeholders

Confidential to Bacardi Limited

Sample Project Deliverables


Process Overview

Detailed Process Maps


Latest Estimate Process
Management Reporting Process
Closing Process

DRAFT
Framework

Leading Practices

Gap Analysis

Best Practices in Financial Planning and


Budgeting
Best Practices
in Financial Planning and
Best Practice
Definition and Characteristics
Budgeting
Determine
Determine the
the use
use of
of the
the budget
budget -- evaluation,
evaluation, planning,
planning, motivation
motivation and/or
and/or strategic
strategic

Implementation Roadmap
Financial Planning Roadmap

Preliminary

______

Well Defined Budget


Purpose

alignment
alignment and
and coordination
coordination

Timing

______

Tasks

Attain
cultural
and
implications
AttainPractice
cultural acceptance
acceptance of
of budget
budget utilization
utilization
and resulting
resultingand
implications
Definition
Characteristics
Best
Strong senior leadership support

Task 4

Duda has used both a bottoms up and top down budgeting in the past. SAP will allow a
combination approach as a best practice which will impact everyone associated with the
budgeting process.
Current reporting is primarily an individual, spreadsheet based system with data from a Task 5
number of sources. SAP reporting will be centrally defined coming from a common data
source and as such will be a significant change to everyone involved in reporting.

Task 6

Page 1

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Activity 3
Activity 4

Activity 5
Activity 62
Activity 7

Activity 8
Activity 93
Activity 10

Phase 2

pieces
of
information
Identify
Identify key
key
pieces
ofcompiler
information for
for the
the executive
executive level
level stakeholders
stakeholders and
and decompose
decompose
Finance
aa leader
and facilitator
instead
of
Finance is
isLevel
leader
instead
of aa
compiler
Appropriate
of and facilitator
into
level
detail
into operational
operational
level
detailinformation
Finance
does not
make decisions,
but
provides
Finance
but only
only
provides
information to
to decision
decision makers
makers
Budget does
Detailnot makedecisions,
detail
(line
Budget
Budget
detail
(line items)
items)
maps to
to operating
operating plans
plans and
and performance
performance metrics
metrics
Finance
budget,
operations
does
Finance does
does not
not own
own the
the
budget,
operations
doesmaps
Finance as a Facilitator
Define
communicate
aa uniformly
agreed
Define
and
communicate
uniformly
agreed upon
upon data
data hierarchy
hierarchy
Finance
of
large
footprint
organization
Finance drives
drives collaboration
collaboration
of aaand
large
footprint of
of the
the
organization
Finance
Finance communicates
communicates the
the financial
financial impacts
impacts and
and dependencies
dependencies resulting
resulting from
from business
business
Enables
Enables real-time
real-time views
views and
and analysis
analysis of
of data
data
decisions
decisions
Allows
Allows finance
finance to
to focus
focus more
more on
on analysis
analysis instead
instead of
of gathering
gathering and
and compiling
compiling of
of data
data
Process Automation
Enables
information
to
be
efficiently
transferred
amongst
Enables information to be efficiently transferred amongst stakeholders
stakeholders
Page 0

Task 1
Gap Description
People
Individual accounting and reporting groups are managed independently and have their own
3
processes and procedures. Moving to a centrally managed, template driven system will Task 2
result in the development and application of accounting process and procedure standards
across the organization which will ultimately impact all the accounting and reporting
processes within Duda.
Task 3
The current organization works in functional specific areas without need of extensive
4
knowledge on how the other functional areas work. This will change in an integrated SAP
environment and will ultimately impact all levels of the organization working with SAP.

Phase 1

Strong senior leadership support


Gap
The
The budgeting
budgeting process
process and
and resulting
resulting budget
budget should
should be
be integrated
integrated across
across the
the business
business
Un-integrated, decentralized
Strategy
units
units by
by targets
Strategy is
is expressed
expressed in
in operational
operational
targets which
which result
result in
in the
the financial
financial targets
targets
accounting and reporting vs.
Integration
Consistent
data
elements
Operational
plan
directly
budget
Consistent
datato
elements
Strategy Drives
Operational
plan line
line items
items are
are
directly linked
linked
to
budget line
line items
items in
in order
order to
to create
create aa
integrated, centralized accounting and
Common
applications
budget
operations
Common
applications
Operating Plan which
budget that
that is
is useful
useful in
in managing
managing
operations
reporting
Complimentary
workflows
targets
Complimentary
workflows into
Drives Financial Budget Shifts
Shifts in
in strategy
strategy and
and operational
operational
targets are
are incorporated
incorporated
into the
the budgeting
budgeting process,
process,
Standard
which
Standard presentation
presentation formats
formats and
and content
content
which allows
allows for
for scenario
scenario development
development
Silo based accounting knowledge and
Allows
plans
Allows
budgets to
to incorporate
incorporate changing
changing strategic
strategic and
and operational
operationalwork
plansvs. cross-functional accounting
Accountability
is
through
Rolling
Forecasting
and
Accountability
is ensured
ensured
throughbudgets
Drives
Drives aa more
more realistic
realistic forecast
forecast
knowledge and work (also applies to
Compliance
Planning
Compliance with
with process
process

Allows
for
greater
acceptance
of
accountability
due
to
better
information
and

Allows
for
greater
acceptance
of
accountability
due
to
better
information
and control
controlwork).
non-accounting
Degree
of
realism
and
accuracy
of
forecasting
and
planning
Degree of realism and accuracy of forecasting and planning
Budgeting;
bottom up or top down vs.
Process and
Timing
Timing and
and sequencing
sequencing
Forms
across
Forms and
and guidelines
guidelines should
should be
be standardized
standardized and
and communicated
communicatedcombination
across business
business
andand
and
integrated spend
Performance
Issue
Issue resolution
resolution
Standardized
operating
operating units
units
controls
Accountability
Use
Use of
of budget
budget
Budgeting Methods
andmanagement
Organization
speaks
of
Organization
speaks the
the same
same language
language through
through aa documented
documented glossary
glossary
of budgeting
budgeting
Reporting;
individual, spreadsheet
Align
needs
Align with
with
management
needs
Materials
and
terms
and operating
operating
terms
centric vs. standardized database
Align
metrics
Align with
with performance
performance
metrics
Common
calculations
Common
calculations performed
performed in
in the
the same
same manner
manner and
and assumptions
assumptions
based upon
upon
Align
reports
drivenbased
Align with
with actuals
actuals
reports
same
data
source
same
data or
orscorecard
source section
Linked
balanced
Linked to
to financial
financial
balanced
scorecard
section

Key Activities
Impact Activity 1
Process
ActivityTech
2

Activity 11
3
Activity 12
Activity 13
Activity 14
Activity 15
Activity 16

Confidential to Bacardi Limited


5

Confidential to Bacardi Limited

Integrated Process Management


Strategic Planning

Corporate Strategy

Operational Planning
Rolling Business Plans

Reporting
Internal Reporting

Define Long-Range
Corporate Goals

Review
Key Performance
Indicators

Create Budget
Assumptions and
Templates

Develop
Sales & Operational
Plans

Actual vs Budget
Reporting with
Variance Expl

Develop New
Rolling
Forecast

Conduct
Strategic Planning
Session(s)

Review Corporate
Values,
Vision, Mission

Develop
Sales Plans

Develop
Market Plans

Actual vs PY
Reporting with
Variance Expl

Actual vs LE
Reporting with
Variance Expl

Identify External
Business Impacts

Define Corporate
Strategies

Develop
Personnel Plans

Develop
Regional Plans

Industry and
Competitor
Analysis

Analyze Brand
Portfolio and
Performance

Brand/Region Strategies
Create Strategic
Plans by Region
and Market

Legal Entity Tax


Impact Analysis

Region-Brand
Market Share
Goals & Analys.

Secure Key
Stakeholder Buy-in

Strategic Plan
Option Quant.
and Selection

Consolidate
Strategic Plans

Prioritize and
Validate Plans

Communicate
Strategies to All
Business Units

Capital Plans

External Guidance
Develop
Bottoms-up
Variance Reporting

Senior Management
Review &
Accountability

Develop Capital
Plan
Requirements

Analyze Projects
and Determine
Impact of Each

Develop Rolling
Forecasting
Process

Periodic
Meetings
with Analysts

Prepare
Assumptions
and Templates

Consolidate &
Prioritize Projects

Understand
Current and Expected
Performance

Maintain Consistent
and Accurate
Projections

Compile List of
Requested Projects

Communicate
Approved
Projects

Know and Manage


Business
Drivers

Depr. Expense Plan


Feeds Operating Plan

Portfolio Review & Approval


Consolidate
Business Plans

Identify Areas
for Improvement

Summarize
Expected
Financial Results

Gain CEO and


Board Approval

Confidential to Bacardi Limited

Integrated Process Management


Our project approach will organize our process definitions according to an
integrated view of financial process management
Capital Plans
Corporate
Strategy

Develop Capital
Plan
Requirements

Consolidate &
Prioritize Projects

Compile list of
requested projects

Communicate
Approved
Projects

Portfolio Review & Approval


Brand /
Region /
Market
Strategies
Top
Down

Financial
Statement
Forecasting
Balance Sheet
Income Statement
Cash Flow
Consolidate
Business Plans

Identify Areas
for Improvement

Summarize
Expected
Financial Results

Gain CEO and


Board Approval

Bottom
Up

Rolling Business Plans


Regional Rollup

Reporting
Financial
Reporting
(Act. vs PY, B, LE)

Key Performance
Indicators

18-mo Rolling
Latest Estimates

External Guidance

Market Rollup
Create Budget
Assumptions and
Templates

Develop
Sales & Operational
Plans

Develop
Sales Plans

Develop
Personnel Plans

Confidential to Bacardi Limited

Corporate Requirements
One steering committee role is to ensure that the team focuses on the right project
objectives corporate requirements drive market and regional minimum standards

Document and understand market, regional and global requirements


Forecast accuracy vs. required detail
Process cycle time goals and streamlining
Rolling 18 month forecasts
What-if analysis to model corporate strategy scenarios (top-down adjustments)
Common language, view and KPIs for the business

Confidential to Bacardi Limited

Accuracy vs. Detail


Our goal is to continuously improve accuracy of budgets and forecasts, while
determining the appropriate level of detail for each group

Q1
Variance

Q2
Revision

LE1
Release

Q2
Variance

Level of Detail
~4,000 Product Standard Costs
Sales Forecasts at ~same level of detail
A&P by brand

Q3
Variance

Q3
Revision

Q4
Revision

LE2
Release

LE3
Release

Avg. =
17.9

We need to determine the right level of


detail for forecasting, which is not
necessarily the same level as actuals

Confidential to Bacardi Limited

Process Cycle Times


Business
Planning

Strategic
Planning
Goal: Enable real-time,
on-demand what-if
analysis that is
independent to each
business group and
planning participant

Goal: Reduce cycle


time from 6 months to
best practice: 60 days

Analysis

Project Objectives:
Reduce overall cycle time and increase
the capability for multiple cycles
Speed individual process response
capability and move planning activities
closer to the actual events
Automate planning processes by
reducing time-consuming manual data
manipulation

Performance
Measurement

Budgeting

Forecasting
Reporting
(financial &
operational)

Goal: Enable eventdriven LEs; reduce


forecast cycle time
from several weeks to
best practice: <1 week

Confidential to Bacardi Limited

Rolling 12 to 18-Month Forecasts


The current processes and tools that are in place at the market, regional and global level do not allow for
accurate or efficient generation of 18-month forecasts. The team will explore the concept of a 12 month plan
and a statistical forecast for an additional 6 months beyond the plan horizon
This forecast maintains forward-looking visibility into how the company is expecting to perform beyond the
current fiscal year
An understanding of business drivers and actual performance from the current fiscal year are necessary to
update forecast projections, make corrections, and give updated, accurate guidance to Wall Street
Leading practices include re-defining the difference between budgeting and forecasting
CY 2007
FY2008

CY 2008

CY 2009
FY2010

FY2009

AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP
FY2009 Budget
+ 3 Year LRP
Budget Review
Final Budget
Approval
FY10 Forecast
#1 (18 Month)
FY09 Qtr FC #2
FY09 Qtr FC #3

FC:Apr08-Sep09
Time lapse between
creating budget
and start of FY
requires first forecast
at start of FY

FC:Jul08-Dec09
FC:Oct08-Mar10
FC:Jan09-Jun10

FY09 Qtr FC #4
FY2010 Budget
+ 3 Year LRP

Apr09 - Mar10

Budget Review
Final Budget
Approval
FY10 Forecast
#1 (18 Month)

18-month FC

Confidential to Bacardi Limited

What-if Scenarios
What-if Scenario analytical capability
is necessary to forecast the impact to
the organization of various
influencing factors such as:

What-If Analysis Framework

Acquisition of a new company


Market share increasing/decreasing
Brand prices in a market
strengthening/weakening
Adjustments in strategic direction

Analytical modeling capability should


be tied to the financial statement
models, so adjustments to any single
set of assumptions would carry
through to a full set of top-line
financial statements
Source: Hyperion

The steering committee agreed that, while this was the right end-goal for the company, their expectations should be
set that achieving this type of functionality across all levels of the organization (markets, regions, global) would be an
evolutionary, continuous improvement process that would not be executed over the immediate time horizon

Confidential to Bacardi Limited

Key Performance Indicators (KPIs) provide the bridge to


ensuring business strategy aligns with performance
Key Performance Indicators (KPI) are financial and non-financial
metrics used to quantify objectives to reflect strategic performance
of an organization. They assist in aligning business performance
with top level scorecards. Among the areas top management
analyzes are:
Customer driven statistics (retention, etc.)
Organization development
Market driven responsibility and measurement
- Financial performance
- Business drivers
- Sales and operations planning

ur
em
e
Me
as

KPI

ce
an
rm
rfo
Pe

nt

KPIs need to be: Specific, Measurable, Achievable, Realistic


and Timely and aligned with employee performance and
incentives

Accountability

Scorecards provide metrics mapped to corporate objectives for evaluating performance


Confidential to Bacardi Limited

Project Scope
In-Scope

U.S.
Northern Europe
Southern Europe
P&L planning, forecasting, budgeting

We need project scope guidance from the steering committee for several geographies, business
processes and business units
Region and market inclusion
Working capital, capital expenditure planning and forecasting
Global operations (Tradall) (standard costing, Blossom)
KPI project considerations / management reporting
BGB
Are there any additional scope issues that should be considered and discussed?

Confidential to Bacardi Limited

Region and Market Inclusion


We need guidance from the steering committee about the inclusion of various markets
and regions
Region / Market
Mexico
Net Revenues: $236M

Description
Should Mexico be included in the project as a separate region for
process discovery and documentation?
Where should it fall in the priorities for the project?
Are the processes similar enough to other regions or markets that
addressing other regions or markets will be sufficient for building our
implementation road map deliverable?

Decisions
Mexico should be included
The process is different enough from
U.S. and Canada that the team should
understand it to include it in the roadmap

Asia-Pacific
Net Revenues: $60M

Asia-Pacific is a limited-consolidated region


Review of Asia-Pacific processes and
requirements is not needed to create the
The region will be blueprinting and implementing SAP over the next
roadmap
~18 months
Including individual markets may not be material to the project at this Johnny Lai should be kept informed and
involved in the communications for the
time while inclusion of the overall region may be significant to
project so that he understands our
planning and forecasting overall BL performance
approach and the outcomes
What is the current process for tracking and accounting for Asia
The team should understand the SAPPacific operations?
SEM Blossom project in Geneva and any
What are our requirements of this process to support the planning
ties to this project and the financial
and forecasting functions?
budgeting and planning processes

Canada
Net Revenues: $130M

Can Canada be considered for process discovery and documentation Canada does not need to be documented
at the same time as the U.S.?
and understood separately for the
purposes of developing the road map

Latin America
Net Revenues: $130M

Should Latin America be included in the project scope as a separate


regional element?
Are the processes similar enough to other regions or markets that
addressing other regions or markets will be sufficient for building our
implementation road map deliverable?

Review of Latin America processes and


requirements is not needed to create the
roadmap
Lack of market-specific critical mass and
different processes

Other Small / Medium Markets

Are there any small or large markets that we should pay particular
attention to in the project scope?

No others to be considered beyond what


has been stated as in-scope for the
project

Confidential to Bacardi Limited

Working Capital Planning and Forecasting


Including working capital planning and forecasting in the scope of the project requires
direction and definition from the steering committee
Process
Description
Decisions
Inventory, receivables and other current How should the project approach the planning requirements for these We will include this subject in the scope
assets planning
working capital items?
for the project part I as-is analysis.
After understanding the as-is processes
Days outstanding receivables, days of inventory on hand, etc. are
and requirements for the future
typically used as key elements of driver-based forecasting
processes we will assess the impact on
approaches
the project for inclusion in the roadmap
There are significant working capital adjustment and forecasting
development and the steering committee
considerations that result from inter-company profit elimination
will make further decisions at that point
processes

The committee recognized that inventory


Inventory valuation
valuation could be a complex matter
Cash flow forecasting for inter-company invoicing and payment
Capital budgeting

Working capital forecasts inherently include an understanding of cash Capital budgeting activities will be
payment expectations for capital projects
included in the same scope as the overall
working capital forecasting approach
Should the project include documentation and design of a capital
While our focus isnt on redefining the
budgeting cash flow process? At what level of detail?
capex process, we will understand its
What should the global finance function requirements be for capital
outputs to assess their impact on this
budgeting planning as a part of this project?
project

Confidential to Bacardi Limited

Global operations (Tradall) (standard costing, Asia-Pacific)


The global operations group and Tradall are key to the Bacardi enterprise and a
number of elements pertaining to planning and forecasting are being considered
Process
Standard costing

Description
We need to understand the approach and level of detail that is
conducted by Tradall when developing standard costs
Our goal is not to define the future process for creating and managing
standard costs (SAP blueprint project)
What information does Tradall need to develop standard costs?
What are our requirements for the level of detail needed to conduct
the appropriate planning and forecasting processes in a timely
fashion?

Decisions
We do need to understand the costing
approach at a high level
We are not looking to redesign the
standard cost approach
Most important is to understand the
required lowest level of standard cost
budgeting detail for each level of the
organization: global, regional and market
Team will evaluate and document the
extent that estimates of standard costs
and the variance are a driver of
differences in the forecasted and actual
financial metrics
Display best practices and allow the
steering committee to make a
consolidated decision about how to
include standard costs in the financial
budgeting process

Asia-Pacific & small EU markets

What is the current process for tracking and accounting for AsiaPacific operations?
What are our requirements of this process to support the planning
and forecasting functions?

The team should understand the SAPSEM Blossom project in Geneva and any
ties to this project and the financial
budgeting and planning processes

Confidential to Bacardi Limited

Key Performance Indicators Project, BGB


We need to understand the goals of the KPIs project / initiative and the tie between the
requirements of that project and this project
Process
KPI development
KPI measurement and reporting

Description
What is the process for developing
What will the process be for measuring and reporting on KPIs?
How can this project help to enable KPIs?
What are the reporting mechanisms that will be required?

Decisions
There are 2 elements to the KPIs project
Financial KPIs
Broader operational, marketing KPIs

Boarder marketing and business


operations KPIs should not be included in
the current project scope
However, in scope to the project will be
the KPIs specific to the planning and
budgeting activities - like the amount of
time required to prepare an LE

BGB budget and forecast is material and we need to understand the steering
committee objectives around these processes
Process
Advertising forecast

Description
Should we understand and document the annual BGB advertising
portfolio review and decision making process for inclusion in the
project?

Market A&P

What are the impacts on the markets of BGB activities from an A&P
budgeting perspective?

Decisions
The process for coordinating the forecast
of global and local A&P should be
evaluated by the team and understood
for the roadmap

Confidential to Bacardi Limited

Process Design Areas / Project Activities


1.
2.
3.
4.
5.
6.
7.
8.

Steering Committee kickoff


Global processes for consolidating/processing budgets and reporting actual to
budget
Leading practice workshop
N America market / region business process analysis
European market / region business process analysis
BGB
Working capital planning process analysis
Global operations / Tradall coordination

Confidential to Bacardi Limited

Project Schedule Preliminary (to be confirmed)


Activities

Involvement

1. Steering Committee Kick Off


Gather key steering committee members for face-to-face meeting
Define global/corporate requirements for planning and budgeting processes

Location

Timing

NYC

May 10, 2007

Confirm project scope: reporting, working capital forecasting, capital budgeting, etc.
2. Global processes for consolidating/processing budgets and reporting actual to
budget
Budget Processing/ Actual-to-Budget Reporting

Gaston Tano
Paul Waring

Miami

Week of May 14

3. Leading practices workshop


Share leading practices for the integrated management processes
Include a focus on public company requirements, practices and key differences to private
organizations

Steering Committee
Project Leadership

New York

June 5/6

4. N America region business process design


Process Documentation

Ken Sutter CFO


Miami
Scott Gwaltney IT
Chad Zimmerman
analytics (sales support)
Claudette Halluk
finance
Chio Zubiria ops

5.

European market and region process design


Regional Director Meetings
UK is different from the other markets
France
Belgium & Netherlands together in Paris
Spain
Russia in UK
Italy

Xavier Serra
Luis Bach
Salvador Campana
Nicolas Imeneuraet
Country Finance
Directors

Week of May 14

Barcelona
UK
Paris

Week of June 11
Week of May 21
Week of June 11

6. BGB
Process definition, requirements identification

TBD (Terry to confirm)

London

Week of May 21

7. Working Capital Planning Process Design (TBD)

Rod Thoms (work cap)


Abili Sanz (small
markets / Blossom)

Geneva

Week of May 21

8. Global Operations / Tradall Coordination

Paulo Tucci (standard


costing)

Geneva

Week of May 21

Confidential to Bacardi Limited

Project Schedule
This schedule is preliminary as exact dates, times, locations and participants are being
confirmed

May
14
21

28

Week Beginning
June
4
11
18
25

Jul
2

16

23

Project Kickoff
Steering Committee Meetings
Financial Closing
Communications:
Steering Committee Conference Call Update
Project Status - Weekly
Regional/Market Mgrs and Finance Directors Update
Bacardi Executive Committee Updates
Business Process Design:
Miami - U.S.
Miami - Budget consolidation process (Paul Waring)
London - BGB, U.K., Russia 5/21, 5/22, 5/23
Geneva - standard cost, global ops / Capex, working capital, blossom 24/25
Open / Miami - Mexico possibly, Terry to confirm with Mexico
New York - Best practices with Steering Committee 6/5, 6/6
Barcelona - Regional Directors, Spain 6/11
Paris - France, Belgium, Netherlands 6/12, 6/13

Confidential to Bacardi Limited

Global Project Scope and Impact


This project has a broad global reach and a significant number of individuals will be
involved in the projected and impacted by the outcomes
Bacardi Executive Committee
Andreas Gembler Eduardo
Sanchez

Graham Hetherington Luis Bach

Xavier Serra

Timothy Sullivan Stella David

John Esposito

Andy Fernandez

Atul Vora

Harold Dyrvik

Manuel Rubiralta

Jeri Dunn

Jon Grey

Global
Gaston Tano

Paul Waring

Mike Brennan

Terry Brady

Roger Cash

Regional
Roberto del Rosal Ken Sutter
Johnny Lai

Nicolas Imeneuraet

David Guerrero

Salvador Campana

Market
Claudette Halluk

Jose Rodriguez

Lisa Smith

Arran Nicol

Sylvie Henon

Mark DeWitte

Michael Volke

Francis
Debeuckelaere

Kjeld Thomsen

Jayant Kapur

John Beard

Christiane Jay

Frans Sebel

Joerg Hansch

Michel Verreth

Folmer Pedersen

Ravi Ahluwalia

Brian Hibbert

Christian Petersen Angelo Angelis

Jose Manuel Barcelo Robert FurnissRoe

Emmanuel Pouey Stefano Leonangeli

George Koliastassis Lorenzo Guerra

Helena Ladeira

Roberto di Natale

Oscar Rodriguez

Roberto Olave

Gianfranco
Ferralis

Pedro Rosario

Juan Carlos
Sanchez

Braz Pucci

Jorge Munoz

Manuel Perez Tejada

Jorge Castiglioni

Sebastian Deiros

Angel Torres

Paul Beggan

Victor Sancho

Paulina Dyuznova

Our initial evaluation has identified ~60 individuals that must be included in
our project communication activities

Confidential to Bacardi Limited

Communication Plan Objectives


as a result, our communication plan segments groups and individuals to ensure
timely communication of relevant information with a goal of motivating action
Ive heard of this
project

I know what the


project team is
doing

Awareness

Understanding

I think this
change is a good
idea

Commitment

I want to be
involved

Action

Awareness:

Stakeholders have heard of the change activities

Understanding:

Stakeholders know what the objectives are and understand the need for the change

Commitment:

Stakeholders believe in the change and the need for it to succeed

Action:

Stakeholders want to be actively involved in the change

Confidential to Bacardi Limited

Appendix

Confidential to Bacardi Limited

Communication Plan Detail

# Key
SC

Steering Committee

EC

Executive Committee

Market / Regional Managers and Finance Directors

Audit Committee

Audience

General Message

Format

Timing

Responsible

SC1

Steering Committee

Letter from Terry outlining project overview

Letter - email

May 11

Terry Brady
Debbie Roberts

SC2

Steering Committee

Follow-up to Terrys letter with further information


about project with summary of steering committee
meeting, action items, project schedule

Letter - email

May 14

Terry Brady
Debbie Roberts

EC1

Executive Team

Communications packet with brief summary of


steering committee, project status, schedule and
deliverables

Letter with
attachments email

May 14

Terry Brady
Debbie Roberts

O1

Market / Regional
Managers and Finance
Directors

Summary of Steering Committee meeting


Overview of project
Project Schedule, deliverables
Action items
Contacts
FAQs

Letter

May 15

Terry Brady
Debbie Roberts

O2

Market / Regional
Managers and Finance
Directors

Letter from Andreas to convey his sponsorship of


project and expectations for its success

Letter - email

May 16

Terry Brady
Debbie Roberts

SC3

Steering Committee

Review of project status, issues resolution

Meeting

Monthly
beginning
May 10

Terry Brady
Chris Miller

EC2

Steering Committee

Weekly project update

Letter email

Weekly
beginning
May 17

Terry Brady
Chris Miller

Status
Drafted

Confidential to Bacardi Limited

Communication Plan Detail (cont.)

General Message

# Key
SC

Steering Committee

EC

Executive Committee

Market / Regional Managers and Finance Directors

Audit Committee

Audience

Format

Timing

Responsible

SC4

Steering Committee

Weekly call to address issues, status-to-date, etc. to


follow the weekly written communication

Conf. Call

Weekly
beginning
May 18

Terry Brady
Chris Miller

O3

Market / Regional
Managers and Finance
Directors

Status report to provide status, identify revisions,


changes, information and/or action needed

Letter - email

Weekly

Terry Brady
Debbie Roberts

O4

Market / Regional
Managers and Finance
Directors

In-person visits to determine market processes, etc.

Meetings

May 14 - ??

Terry Brady
Project Team

EC3

Executive Team

Findings from market visits

Meeting

??

Terry Brady
Project Team

EC4

Executive Team

Findings from market visits

Letter - email

??

Terry Brady
Debbie Roberts

O5

Directors, Country
Managers, Finance
Directors

Findings from market visits

Letter- email

??

Terry Brady
Debbie Roberts

EC5
SC5
O6

Executive Team
Steering Committee
Directors, Country
Managers, Finance
Directors

Project summary with findings, recommendations,


benefits of change

Letter email

??

Terry Brady
Debbie Roberts

AC1

Audit Committee

Provide overview of findings, recommendations and


impact of change on global, regional and market
basis

Letter email

??

Terry Brady
Debbie Roberts

Status

Confidential to Bacardi Limited