Sync Bacardi Network Study RFP

Revised
Confidential
Bacardi Network & Supply Chain Reinvention

Path to ‘breakthrough’ performance
Revised Proposal
December 2014
Confidential — all rights reserved

© Ernst & Young LLP 2014
We provide selected client references and invite you to discuss our
New
track record with them
Heinz
► Supply Chain Transformation aligned with the Commercial organisation to drive step change in market and cost performance –
includes commercial engagement, innovation/R&D, organisational change, distribution and manufacturing network re-design
► $65m pa savings from initial phase of transformation
► Contact: John Hans, VP Transformation – details available on request
Kellogg
► Africa commercial strategy including new market entry and growth strategy and corresponding manufacturing performance
improvement and network strategy (ongoing)
► European manufacturing strategy identified $60m pa business case
► Contact: Gerald Mahinda, MD Africa – details available on request
British American Tobacco (BAT)

► Supply chain transformation including supply chain performance improvement, network design, planning operating model
transformation and manufacturing performance improvement
► £40m pa from European network design alone
► Contact: Luis Barros, EMEA Regional Operations Manager – details available on request
Mondelez
► Supply chain reinvention programme including operating model and multi $B manufacturing investment
► EY running manufacturing programme transformation office, construction management leadership for Mexico green field site,
North America network design, Global IBP/S&OP rollout design
► Contact: Todd Shy, director of Customer Supply Chain/CS&L – details available on request
Page 2 Confidential – Draft for discussion purposes only

Contents
► Executive Summary
► Part A: Insight informing the path to ‘breakthrough’ performance

► Part B: Experience of delivering value in your industry
► Part C: Capability to secure value for Bacardi
► Part D: Methodology that brings Bacardi along the journey
► Part E: Teaming & Fees that show how we will work together
► Part F: Appendices
► Team CVs
► Key relationships and engagements with Bacardi
Page 3
Revised
Executive Summary – Context and EY value proposition
Our understanding of your EY’s proposition - helping you unlock ‘breakthrough’ performance
requirements We recognise that this project is the most significant change Bacardi has undertaken in decades. We have
developed our proposition within this context and combine our best people, thinking and capabilities across
Commercial, Supply Chain and Tax to maximise value, accelerate and de-risk the project.
► Over the last few years you have been
on a transformation journey to reduce 1 Top-to-Top commitment from EY executive leadership
1.
your cost base whilst laying the We propose Gregg Clark as a senior US EY leader that can act as a peer to your global executive leadership and
foundations for sustainable growth represent EY in the Supervisory Board. This commitment will also ensure that you consistently get the best of our
► Substantial cost savings have been global EY firm in support of this very important programme.
achieved alongside improved
innovation, service, quality, and 2 Strategic alignment starting with the market
2.
sustainability through a two phase
‘Breakthrough’ performance can only be achieved through engaging Commercial teams upfront in an effective
transformation
way. Our commercial engagement will be led by EY partner Elaine Parr, a seasoned practitioner in driving
► You are now embarking on the next Commercial Transformation with a wealth of experience in the spirits industry. Elaine will be driving our
phase and seeking a consulting partner engagement with your Commercial leaders, drawing on our global Subject Matter Resources (SMR) including
to support you those from Parthenon Commercial Strategy Consulting
Build foundation
1 Build a global Supply Chain
organisation
3 Supply Chain of the future optimising Glass sourcing, Trade, & Tax
3.
Our cross functional team will support you in designing a future network that will trade off not just the traditional
variables but also available glass sourcing, Trade and Tax efficiencies. EY Supply Chain has recently been ranked
Drive efficiency Best in Class by IDC MarketScape – regarded as one of the most capable firms at helping clients expand into new
geographies, reduce Supply Chain costs, and improve Supply Chain efficiency
2 Implementing opportunities in
Supply Chain
4 Deep experience of delivering value in Spirits
4.
We bring a track record of delivering breakthrough performance in the spirits industry with our team having
Supply Chain Reinvention
worked with all of the top global spirits players in the last 10 years. Further to this, EY works with 98% of the top
3 Breakthrough to world class,
> 10% savings 500 global CP companies and, specifically, 19 out of the 20 beverage companies in the S&P Global 1200. We
have extensive experience working with Bacardi in the past ten years, having touched the leadership of almost
every country in which you do business.
► The purpose of this study is to identify
the optimal Supply Chain footprint for 5 Effort & Fees that reflect our commitment
5.
the Bacardi of the future (5-10 years) –
this would enable the right level of We have created an experienced multi-national team that blends our global experience of transformation in the
customer service at the lowest total areas of Commercial, Supply Chain & Network, Procurement as well as Tax and Trade.
landed cost Removed

Revised
Executive Summary – Phase 1 approach
This project has set out to answer some big questions for Bacardi, including how to take
out more than 10% of costs and how to set up the supply chain so that it is an enabler for Phase 1 Approach, engaging the markets
growth in the markets
To do this requires a clear view of future market growth potential aligned with the
commercial organisation, robust challenge to current approaches to market supply and
materials sourcing including examining tax and trade flow options as well as challenging
heritage assumptions
We have therefore propose a structured approach that balances economic value,

collaborative challenge and building confidence with the brand and commercial
leadership
Phase 1 approach encompasses 4 key steps
• Step 1: Mobilisation & analysis – Mapping out stakeholders, dependencies and
analysing available data including tax and trade flows and innovation processes
• Step 2: Generate Engagement – Engage with the Commercial, Supply Chain and
Finance leadership through targeted interviews to develop a combined view of growth
and market potential. Gather Bacardi and external hypotheses
• Step 3: Ideation & Challenge – Using a ‘Hothouse’ approach we will bring together
cross functional stakeholders to work through future demand, complexity and network
hypotheses. EY team will bring external thinking and challenge into the room. In
between these sessions we will develop network, sourcing and tax/trade flow Workstream 1
scenarios and conduct further interviews and data collection as required
• Step 4: Validate & Commit – Steering committee meetings will be used to confirm Workstream 2
priorities, with a further ‘Hothouse’ event used to gain commitment from the
Commercial and Supply Chain teams before preparation and submission of board Workstream 3
papers
Workstream 4
Phase 1 work streams
• Work stream 1 & 2 will engage with the commercial organisation to test and confirm
the strategic demand scenarios and innovation portfolio requirements and
streamlining opportunities
• Work stream 2& 3 will assess current performance, strategic tax and trade flows,
glass sourcing / colocation options and create the current network model that will
enable future scenarios to be tested in phase 2. Additionally the future supply chain
operating model requirements and tax implications will be tested here
Revised
Executive Summary – proposal highlights
1 Top-to-Top commitment from EY executive leadership
We recognise that this project is the most significant change Bacardi has
undertaken in decades.
We are excited at this opportunity to bring our vast industry capability,

innovations and insights to infuse into our relationship. Value creation is in
the DNA of our business
2 Strategic alignment starting with the market 3 SC of the future optimising Glass sourcing, Trade, & Tax
A proven approach & team that EY Supply Chain ranked Best in

challenges constraints, considers all value Class by IDC MarketScape EY Supply
drivers and builds belief.. Chain
• Regarded as one of the most
• Radical & connected thinking,
capable firms at helping clients
ranked #1
considering the full equation
• Leverage EY/ Parthenon Commercial expand into new geographies,
Strategy Consulting
“EY takes its investments in research,
innovation, and though leadership very
reduce Supply Chain costs, and
seriously”– Kennedy Consulting Research, improve Supply Chain efficiency
Global Consulting Marketplace
4 Deep experience of delivering value in Spirits 5 Effort & Fees that reflect our commitment
Our FTSE 100
Global coverage at your doorstep
EY are at the forefront of Spirits
industry thinking
5/5 coverage
With EY, you will have access to our
Of major Spirits Centre of Excellence for CP, and will be
Companies 93% connected to a global service and
• Connect our clients and bring the
industry network with the ability to
latest industry insight to you “You combine the kind of intellectual
horse power of the strategy consultants mobilise the best teams
• We work with 98% of the leading with some of the executional excellence
Phase 1 - “EY responds quickly to get people from
global CP companies in the top 500 that those guys miss” – Leading CP anywhere in the world to help” – EY CP
company Phase 2 -
of S&P Global 1200* stakeholder survey 2011
Phase 3 -

Part A: Insight informing the path to
‘breakthrough’ performance
Bacardi aim to drive break-through performance (>10% cost out)
through Reinvention of Supply Chain
Your achievements to date… The next step in your journey…
1 Build foundation: global organisation

through consolidating local operations,
capability build, global SAP and other projects
3 Network & Supply Chain reinvention:
accelerate breakthrough to world class
operations, incremental savings from FY17
► Significant decrease of average total landed

Drive efficiency: implementing
2
cost optimising network design under evolving
opportunities in Lean, Indirect Spending
footprint constraints > 10% cost reduction
Program, One Logistics, Value Engineering &
Innovation ► Revenue growth acceleration given significant
alignment increase between Supply Chain and
brand & sales plans
► Good balance between quick wins and medium

$220m of cost saving term payback
delivered to date
► Leverage Bacardi uniqueness to create Bacardi
$119m of additional Supply chain as strategic differentiator
roadmap to 2017

Using our experience and knowledge of Bacardi we have identified
the key hypotheses outlining where the savings will come from
Logistics &
Baseline Materials Manufacturing Duties
Fulfilment
$1.6B*
$881m $265m $224m $129m
► Supplier footprint/ ► Manufacturing network ► Distribution network ► Distil vs. bottling

co-location design design location strategy
Design ► Strategic sourcing ► Technology strategy ► 3/4PL sourcing & ► Total delivered cost
the Network ► Outsourcing strategy Control Tower design trade-offs
1-2%** 5-10% 5-10% 4-8%
End-to-end flow synchronisation 5-30% reduction in DIO 2-12 days
Complexity management 1-2% of COGS reduction $15-30m
► Purchasing execution ► OEE improvement ► WH & transport ► Account

optimisation management
► Collaboration/ ► Line stability and
Operate the ► Contract leakage/risk flexibility ► Cost per case ► Sales execution
reduction
Network reduction
1-2% 5-15% 3-5% 1-2%
$17-35m $27-66m $18-33m $6-13m

Potential
Cost Saving
$90-190m*** Cash $8-50m
*Includes $96m OH **Only incremental e.g. glass colocation *** Includes 5-10% reduction in OH

Revised
A holistic approach is needed to unlock these savings as trade off
decisions will need to be made to optimise the Supply Chain
In order for these benefits to be realised we believe Bacardi will need to focus on
four key value drivers:
The Network Cost Trade-off Curve*
1. Challenge complexity, heritage constraints
► Processes to manage good vs bad complexity through product lifecycle
e.g. Innovation Management
► Distilling and bottling constraints related to provenance and heritage
including the potential future scenarios e.g. single malt must be made,
aged and bottled in Scotland, whilst there are options for blended whisky
(see credential on page 15)
2. Optimise strategic supply & distribution network

► Clarity on strategic demand scenarios incorporating external challenge
► End state scenarios with clarity of trigger points, unlocking constraints e.g.
cost to close
► Road map that outlines integrated journey to near term benefits and
strategic breakthroughs
3. Streamline global trade flows and tax optimisation

► Employ EY proprietary Global Trade Effectiveness (GTE) tools as well as
country specific local tax experts
► Consider distilling and bottling locations, Free Trade Zones and valuation
optimisations both today as well as in the strategic timeframe
4. Reinvent Supply Chain operations to lock in & maximise value

Finding the ‘sweet spot’ needs to
► Lean network requires operational excellence in planning and execution
consider both traditional Manufacturing
e.g. target OEE > 75%
and Distribution costs as well as more
► Cost To Serve (CTS) maturity will enable full Logistics benefits to be
realised
specialised areas such as Tax and
Procurement…
► Pragmatic Innovation Management controls chaos and complexity
*For clarity, impact of taxes and duties due to global trade flows not included in this chart
Breakthrough performance can only be achieved if you are able to
challenge the marketing ‘paradigms’ of today
Our experience suggest significant value from We will bring a senior Commercial team and
breaking constraints outside of SC control… strategic approach, challenging your Marketeers
We will leverage our EY/ Parthenon Commercial

Provenance Strategy Consulting capability – our acquisition of The
e.g. Scottish Parthenon Group reinforces our commitment to provide
Single Malts Strategic Commercial advice to our global client base
Potential savings from SC Reinvention
Heritage/
Consumer Most
Positioning significant
e.g. Grey The best of both
area of
Goose worlds…Marketing specialism &
opportunity
Strategy consulting
Unconstrained
e.g. Ready To
Drink
Outside Within Within control We will leverage this capability to lead key
control of control of of Supply interviews and workshops with Bacardi marketing
Bacardi Marketing Chain organisation

Our approach to engaging your Marketeers and Commercial
Leadership is founded on 4 key elements
Marketing & Marketing &

Commercial Commercial o Interviews, sharing
o Common vision
and objective leadership leadership external insight and
o Get ready for commitment engagement collectively
challenging generating
conversations breakthrough
hypotheses
“Hothouse” Reference
Events Group
o Marketing &
o Influential cross-
Commercial Leadership functional team test and
o Brand Agency
expand our thinking
o EY challenge

Revised
Our experience from working with leading beverage companies
drives our Point of View (PoV) on what matters in your industry
Our key PoVs will contribute to address the key challenges faced by Bacardi
1
► Market real differences that consumers value Commercial
and growth
2
► Innovation and complexity analysis – good complexity vs bad focus
3
► Supply chain transformation to drive growth
4
► Segmentation and the Differentiated Supply Chain
5
► The North America distributor challenge
6
► Supply Chain organisation impact
7
► Duty as a critical component of trade flow optimisation
8
► Network change to underpin growth and efficiency
9
► Glass industry perspective – colocation for volume or innovation Supply chain
cost and
efficiency focus
10
► New line technology vs. old

1 Market real differences that consumers value
Busting heritage paradigms to drive value…
► Postponed product differentiation and bulk shipment of high value liquid can unlock significant benefits including
duty savings and eliminating unnecessary inventory, mark downs and write-offs
► The Alcoholic Beverage Industry is commonly limited by true heritage and provenance constraints e.g. Scotch
single malts but the majority of constraints in terms of value potential are controlled by marketing organisations
► Industry players are continually challenging these constraints across the full value chain and some new paradigms
are emerging as a consequence…
Retail/
Logistics
Ingredients Distilling Ageing Blending Bulk Bottling consumer
packaging
packaging
Heritage location In country
Recent examples of bottling Scotch Whisky outside Scotland

Good innovation is about bringing a focused portfolio of ideas to
New
2
market faster whilst spotting and culling the bad ideas earlier
Leading CP companies are delivering Our approach will consider the nature of
significant value from successful Innovation… Innovation within Bacardi
Phase 1 approach will consider Innovation and Product

Lifecycle Management (PLM) along three lenses:
• Lense 1: Portfolio complexity – Mapping out a high

level view of the complexity of the current portfolio
but also the anticipated future direction e.g.
Time to market responses to drive growth
• Lense 2: Product complexity – Assessing at a high

level the nature of product complexity in today’s
portfolio and specifically how this represents itself in
Time to profit
the Supply Chain e.g. manufacturing change-overs,
lack of procurement leverage etc.
• Lense 3: Complexity controls – Assessing the current

► As organisations are squeezed for both margin as well Bacardi Innovation and Product Lifecycle
as growth, Innovation has increasingly come under the Management processes and related controls.
spotlight
► Significant value can be delivered through successful
Innovation Management
► Whereas poorly executed Innovation will destroy value This will provide the following two considerations for
e.g. disruption to manufacturing lines Phase 2:
Industry insight: Leading global CP company delivered 1. Nature of future complexity that the network will
> 500% increase in NPV/ initiative within 3 years by driving need to cope with
Innovation transformation through the business 2. Opportunities to improve balance of ‘Good’ vs
‘Bad’ complexity

Understanding key consumer attributes helps drive out complexity
2 that is not valued vs. complexity that creates value and enables
growth
Bad Complexity… …replaced by Good Complexity
SMALL
247ml 275ml 315ml 300g 280ml 275ml

MEDIUM
* format will apply to

all brands, with
degree of
customization
455ml 455ml 450m 400ml 455ml

540ml
MEDIUM+
700ml
 From 15 bottle types to 3 %15 Saving 750ml
 From 8 caps to 1 (in different colors) Complexity benefits on top

 From PP to PET  Better performing bottles
 Leverage among brands (varieties)
Innovation and Complexity Analysis is used to understand good vs
2 bad complexity
Portfolio/Innovation and Complexity Analysis: Initial stage focuses on reviewing the current portfolio and
impacts on Supply Chain to understand where problems occur
Bad Complexity – drives cost and limits growth

Rest of Europe
FRANCE UK Switzerland non EU
► Initiatives portfolio review

► Pipeline development for prototype launch
► Identify
► Harmonise – standardise
► Release line change over capacity
…to do more…
Good Complexity – drives growth and cuts cost
► Promotional product variants with measured ROI
► Product innovation which measures ROI
► Examples:
► Leading Spirits Company re-engineered its wine bottles to reduce
container weight and substantially increase transport efficiency
► ABI: New Becks 275 ml bottle, Coors: Grolsch (-20% glass)
► Beatson Clark lightweight bottle (-30% ) showcased at 2012 Food &
Drink Expo

Successful Supply Chain transformations have a clearly
3 communicated vision and enable profitable growth
SC leaders restructure Supply Chain

Case example: Global Food Company “Vision” Wheel
continuously to align to needs of the market…
[CASE EXAMPLE]
WHY ARE WE CHANGING?
► Competitive advantage enabled by
breakthrough SC cost and service
performance balanced with Supply Chain Implement new
geographic reach business model Standardization
Harmonization
Leaders in Consumer Products differentiate

Synchronization
►
their markets, brands and customers Growth
between growth vs performance focus

Agenda
Funding
Execute
Drives
Top Line
our new ways
► Leaders recognise there is a difference in Growth of working
needs and “distribute” SC efficiencies in line

with overall business objectives Reinvest in
innovations and
marketing Free up funds and
resources
Industry insight: Smaller growth markets

often have reduced margin targets rather
than reduced cost of goods/ transfer prices
to incentivise growth whilst still enabling Growth Perform
comparative performance monitoring Top-line focus Bottom line focus
Invest in innovation & Enabling margin
marketing + enabling and cash
competitive pricing performance

Example Roadmap through to delivery: Global Food Manufacturer
3 Supply Chain reinvention to drive breakthrough COGS performance
An integrated
An integrated and
and more
more professional
professional Supply
Supply Chain Key learnings and choices:
► Scope of change…
Chain operating model…
operating model…
* SC leadership Supply Planning
From country led to integrated

Procurement Continuous improvement
►
Finance/HR
centre led Supply Chain
Technology
► From country ownership of inventory

*
*
* to regional balance sheet
* ► Manufacturing & distribution
footprint rationalisation – move to
*
focused factories
► New Innovation Management
From From a regional
a regional Toan
… to anintegrated
integrated process & technology
organisation…
organization… organisation…
organization
► New Integrated Business Planning
(IBP) process
EU SCM EU SCM
Buy UK&I HCE HSE Buy Make Plan ► Upgraded core Supply Chain
capabilities e.g. Demand Planning,
SCM SCM Cat. Cat. CAPEX management
SCM Cat. Cat.

Global Food Manufacturer (continued) – Change network mobilised
3 behind common vision to sustain change and growth
a Mobilise leadership via vision b Change impact & people analysis
WHAT ARE WE CHANGING?
Centre led Professional Standard Integrated Demand

skills processes Systems driven
Execution Excellence
Source Plan Make Deliver

Category Pan European Operational Integrated
expertise Category Excellence
Planning Network
Leveraging Process and
Scale Synchronized Transparency on
and harmonized productivity
improvement cost-to-serve
Drive
Innovation Key interface
and VE SC-BU
European Customer
Lean Optimised category
optimization Centric
backoffice service and DII
c Plan required change interventions d Set-up change leaders & delivery network

4 Segmentation and the Differentiated Supply Chain
Segmentation and the associated differentiated Supply The EY methodology draws on the different economics at
Chain is an emerging theme in Consumer Products Supply play to segment the Supply Chain. These economics are
Chain, and it was cited in the Gartner “Hype Cycle for 2010”. assessed through tailored segmentation criteria which are
used to analyse and develop preferred strategies within
each of the elements of the Supply Chain.
Over time the industry has sought to build scale by
consolidation of the supply assets; regional and multi national An iterative process is then completed around the Supply
brands and products were specified; manufacturing plants were Chain de-coupling point to ensure end-to-end
reduced and focused on process technologies and products. consideration of the flows. End-to-end integration is
imperative to ensure the capture of all the available benefits
The next step in the evolution of Supply Chain is the creation of and to avoid conflicting strategies.
Differentiated or Segmented Supply Chains within the
homogeneous environment of the single function –
segmentation means that one size does not fit all.

4 We use segmentation to create the Differentiated Supply Chain
What this could look like in a Global Drinks Company
Building on our deep understanding of the drinks industry we have designed the following table to illustrate how the concepts of
differentiation can be applied specifically to Bacardi.
• Lean/Efficient has a ruthless drive for lean, elimination of waste, reengineering to drive the highest volume through here
• Premium tends to be used to accommodate complexity within the manufacturing sites and product portfolio
• Super premium, Innovation, Luxury Craft build Supply Chain makes the third Supply Chain
Our projects typically undertake the analysis to establish which products are driven by which parameters and where in the Supply
Chain.

4 Case Study Example – Global Consumer Products Company (i)
A global consumer healthcare The product segmentation shows mainly two There was no factory or line segmentation based
company was significantly falling product patterns: high value, low product mix on product characteristics with a high mix of
behind its peers in terms of revenue and low value, high product mix. There were different product types in all factories. This
and EBIT growth. In order to also redundant SKU’s, formulations and resulted in higher manufacturing costs
generate growth the business was packaging
starting to drive innovation much
more aggressively. The
consequence of this was that the
Supply Chain needed to both
reduce cost, whilst at the same time
handle lower volumes and a higher
product complexity mix.
We undertook a strategic Supply
Chain review to determine the right
Supply Chain configuration for the
future. A segmented Supply Chain
approach was fundamental to deliver
the service and cost transformation
needed,
From the initial diagnostic it was clear
that there were no differentiated
services linked to customer/ group or
price. There was no segmentation of
Supply Chain based on product
complexity, volume and value. There
was no segmentation within the
factories and lines based on product /
volume characteristics. There was
significant opportunity to reduce
packaging and formulation
complexity.

4 Case Study Example – Global Consumer Products Company (ii)
The implemented Supply Chain

segmentation strategy started with
a differentiated set of customer
classes and service levels. Three
product / economic related Supply
Chains were defined and
manufacturing strategy, footprint
and lines were re-orientated around
these 3 Supply Chains. An
additional innovation Supply Chain
was created within existing
facilities. Distribution approach was
re-orientated along the 3 different
Supply Chains.
Results from the project were

significant – Supply Chain costs were
reduced by 8% and in addition there
was significant CAPEX avoidance.

Drinks and Spirits industry starting to copy Pharma approach to
5 breaking through the North American route to market challenge
The three-tier challenge Pharma case example
► Three tier systems resulting in visibility and
coordination issues around stock levels but also
allocation of promotional spend – this is due to
manufacturers having to sell through a distributor to retail
and being unable to sell direct (some exceptions)
► Ineffective point to point relationships with one major

distributor (Southern is the biggest), a number of smaller
ones and individually with all of the 17 ‘control’ state
monopolies that operate a supply to forecast model
where the manufacturer will still own the stock, but the
government operates the distributor and sometimes retail
tiers
► Builds in complexity and coordination issues - our

experience is that the level of collaboration is low with the
manufacturer holding high level of stocks as a buffer to ► In most mature markets, Pharmaceutical drug distribution is controlled by a
cover customers that may order more than expected - wholesaler / distributor layer with state mandated margins
particularly the case for state control customers that have
severe penalties for stock outs. The big distributors are ► Wholesalers / distributors control the channels with barriers to entry
still not sophisticated and wield a lot of power - including order management, high service levels and consolidated
collaboration is at elementary stage there invoicing. Manufacturers were dissatisfied due to margin loss, lack of
customer / patient insight, grey market leakage and counterfeiting
► There are already a few cracks in the three-tier system ► In 2007, Pfizer changed their UK model to Direct to Pharmacy through:
– Washington is now allowing direct shipments to ► Creating a credible threat
customers, with Costco leading the charge to scale this – ► Moving the wholesaler relationship from customer to service provider
many alcohol manufacturers remain reluctant for fear of ► Taking title of inventory residing in the wholesaler
getting distributors offside ► Still using the wholesaler capabilities to take orders and collect cash
One spirits company has implemented VMR / SMR in the US to reduce uncertainty in replenishment levels, and as a consequence
been able to use the more certain demand signal to improve production stability and smooth supplier requirements.

Revised
Supply Chain reinvention contains opportunity to challenge the
6 Supply Chain organisation design
We have experience of Switzerland based companies with <20 FTEs in the centre*
We will consider Supply Chain Global Confectionary Company

Organisational impacts in Phase 1
Brand legal owner Regional Head Quarters (Principal) SBS
• Legal ownership of brand
• Our team has deep experience

(e.g. Halls, Trident) • Regional business strategy • 3 way matching of purchase
• Target setting & performance management orders, GRNs & invoices
• Purchase invoice processing
Supply chain management Commercial management Financial management for Principal
BI • Own overall SC strategy • European management of • Supply chain and
of organisational transformation
• Process Principal marketing
• Validate & approve Demand global brands & commercial finance support costs recharges
• Receive innovation for Gum & Halls Plan management of regional • Financial accounting and • Process outside 1Europe sales
• Send forecasts for Gum • Strategic sourcing & ABM brands: reporting for 1Europe & purchases for FG, semi-
allocations decisions - • Brand strategy, • 1Europe cash flow planning
and design in the context also

finished goods & raw
Supply chain will build on the

balancing demand & supply positioning & POA and management materials
Global Commercial • Validate & approve PO’s on global & regional • Hedging and foreign • Royalty charge processing
(directs) ABM brands exchange management • Process variance & SLA
• Supplier, 3PL & Toller • Innovation (POC) for all • Management forum support adjustments
of Switzerland based tax

• Global brand portfolio strategy &
success of the Supply Chain

contract & performance projects requiring S&T • VAT and CIT compliance • Intra group settlements &
brand positioning for Gum, Candy
management resources (mgmt thro’ • SLA, variance & reconciliations
& Chocolate
• Coordinate regional IPM IPM gate review) reconciliation activity • Process management charges
• Innovation for Chocolate
• QEHS strategy & control • Governance of regional IO • Deferred tax accounting on • Maintain master data for
effective structures hubs and create a Supply

and local brands IP principal
Other group companies
Manufacturing & Innovation & brand Financial & management Transaction processing
Chain team at the Regional HQ

• Corporate services • SBS sourcing decisions management accounting
• HR
• We will have three key

• PBS
• S&T • IT
to drive forward:
objectives when considering the
Manufacturing unit  Commercial unit
SC Planning Hub 
(Toller) (LRD)
• Regionally led S&OP to

Manufacturing: Manufacturing finance Planning: Order: Commercial: Commercial finance:
future organisational impacts:

• Convert raw materials • Process raw materials & • Perform Supply • Manage • Execution of all POB • Demand planning updates
into finished goods: packaging GRNs Planning order to cash activities for global, • Local foreign exchange
align and improve decision

• Production scheduling • Finished goods accounting • Run MRP and process regional & local management
• Quality control (for principal) populate • Support LRD brands • Group and local financial
• Plant maintenance • Variance calculation purchase orders in Demand • Management of reporting
1. Protect the ETR and tax

• Direct material call-off accounting • Manage co- Plan regional IO and local • Tax reporting & compliance
making across the region

• Local sourcing • Indirect purchase processing packers and co- brands • FG SKU master data
(indirects) • Toll fee processing manufacturers Customer operations: management
• Local fx management • Manage local IPM • Local market • Debt & Cash management
effectiveness of the Bacardi

• Group & local financial & master data intelligence • Sales Order processing
reporting • Manage • Channel management • Customer invoicing
• Regionally led Innovation

• Tax reporting & compliance warehousing and • Local sales and order • Local purchases invoice
• Vendor & BOM master data primary & taking processing
business model
management (partly for secondary • Sales & marketing • Customer master data
Management to improve
principal) transportation forecast management
Convert raw materials to finished goods Coordinate planning & order management Local marketing, POB activity & sales
2. Drive towards a more effective the way Supply Chain works

organisation in support of the with the category teams,
Supply Chain of the future our planning and
responsiveness
3. Identify opportunities for
• Regionalised supplier
delivering FTE cost savings
sourcing and contracting
• Regionally led
manufacturing strategy and
performance management
* These scenarios include a light touch Procurement organisation

Customs duties are a critical component of optimising network and
7 trade flows
Value drivers
EY’s Global Trade Excellence (GTE) Tool
Bacardi markets have significant duty trade offs
that can be optimised through various value drivers
► Where to bottle
► Differential in import duty rate
► Immediate duty saving
► Additional savings such as postponement
benefits
► Free Trade Agreement access

► Reduce or eliminate import duties
► Sourcing and production locations
► Strategic planning for mid and long term
network and Supply Chain initiatives
► China, India and ASEAN
► Mercusor and South America
Market Duty Rates
Product
► Customs valuation Brazil Argentina Uruguay China India
up to
► Strategic consideration Whisky bottled up to 35% 20% 10% 150%
20%
► Consideration required to ensure that the
Whisky bulk 12% 6% free 10% 150%
model is commercially and technically
sustainable Rum bottled 20% 20% 20% 10% 150%
► Enables management of landed cost for Rum bulk 20% 20% 20% 10% 150%
future price increase
Our experience optimising product trade flows has helped other
7 companies in your industry identify potential savings of c. £20m
Business Challenge Current Duty Value
Assessment
The client is a Global Spirits Company seeking to identify product trade flow opportunities and Selected Johnnie Walker Red, Vat69, White Horse and Black & White Flows
High level review Not reviewed
redesign the distribution landscape to enhance global savings

EY was engaged to do a product trade assessment for the client’s strategic brands to identify
opportunities for distribution within the network to future proof the business
Total customs duties

EY’s role: of over £10m
Total customs duties:
of over £1.5m
 Worked closely with the client to gather required data for the total delivered cost analysis –
this included gathering distribution and customs relevant data Total customs duties
of over £12.5m
 Performed local bottling vs bulk analysis to identify optimal trade routes as well as customs
Bulk Shipment and Local
savings due to reduced customs value of products imported as bulk for blended brands
Bottling Analysis
 Examined whether it is possible to carry out any processing activities on key brands at
different locations in order to constitute ‘origin’ status to reduce or eliminate import duties
(Free Trade Agreement)
 Developed customs valuation across key brands to identify optimisation opportunities where
commercially sustainable and consistent with the company’s transfer pricing policy
Value to the client

LATAM
 Potential duty benefit of £5.2m (~£4m net of local bottling) on £12.5m spend due to
Free Trade Zone (FTZ)
differential duty rates of Bulk vs Bottled product
Opportunity Analysis
 ~£500k of FTA opportunities if key product was distilled and shipped within FTA – although
low value currently, this may increase as volumes grow
Asia
 Potential duty benefit of £3.3m (~£1.8m net of local bottling) on £10m spend from effect of
reduced value of product shipped in bulk
 If all trade flows for key product into Asia were from Free Trade countries, projected saving
would be £ 10m (would require filtering, dilution and bottling in an Asian location)

Existing Bacardi network splits between emerging market growth
8 strategies and mature market cost challenges
Europe – Legacy bottling lines

and slow growth leading to over Asia Pac - ASEAN trade
capacity and excess cost block evolution and increasing
North America - Market rules number of FTA with China
on distribution make improving Complex assessment to build create possibility of China as a
logistics complex, but Pharma business case for change future supply hub for the
breakthroughs in VMI offer a region to underpin growth
possible way forward
India - New Prime Minister

may finally mean promised
LATAM - Complex trade rules and GST harmonisation will
high duties make finished goods happen creating network
import expensive, there is potential opportunities
for local bottling which could
improved shipping density, reduce
costs and give late postponement Africa - Rapid growth in middle
but must be balanced with class creating huge new market
Marketing and Commercial needs potential for growth but with
complexity of developing trade
blocks making it key to have
clear strategy for supplying the Glass Supplier
regional blocks
Bottling & Production Production
Co-packing Bottling

The glass industry has particular characteristics such as constrained
9 capacity that shape how premium glass users need to engage
Industry Challenges
 Many glass manufacturers are capacity constrained; demand in high
The map below shows key locations for two main
growth countries restricts availability of imported glass
global glass suppliers vs. Bacardi bottling locations
 Consolidation of glass manufacturers has left few main suppliers e.g. 3 in
North America– Owens Illinois, Saint-Gobain, and Anchor
 Cost reduction over the last years has led glass manufacturers to limit
expansion
 Although gaining consumer acceptance, alternate container material
usage is limited due to branding needs
What our clients are experiencing

 More premium spirits require use of “perfume grade” glass
 Increasing interest in substitutes (PET, glass breakage remains a
concern)
 Some large spirits and brewing companies have explored equity
relationships with regional glass suppliers
 Supplier relationships have been managed regionally and locally, driving
high prices and inconsistency
What are we helping our clients do

Glass Cost Breakdown*
 Exploring dedicated furnace capacity with key supplier in close Glass sourcing trades off
proximity to bottling plants (freight cost can be up to 6%) proximity (transport), low
 Optimizing regional supply base and providing central oversight to cost country sourcing
glass procurement. Benchmarking across regional and brand contracts (labour arbitrage) and
to drive consistent pricing agreements and saving energy price arbitrage
 Finding and evaluating second and third tier glass manufacturers eg. For European sites
 Developing structures to evaluate and potentially enter into equity - Europe: proximity
- India/ China: labour
relationships with second and third tier glass producers arbitrage
 Structuring global category management to increase global visibility - US: Energy arbitrage
and leverage with glass suppliers (future possibility?)
 Using supplier collaboration to drive innovation and balancing
economic order quantities against cost of carrying inventory
 SKU reduction through commonality at the mold level for bottles
*EY research (actuals vary by region and glass type / % cullet content)
10 New line technology vs. old requires careful evaluation
► Modern line technology offers higher efficiency,

automation, speed and flexibility, for example:
► Faster Fill rates with less wastage
► Higher line efficiency eg using efficient
permanent magnetic motors rather than
asynchronous motors
► Flexible labelling systems that allow machines to
be pre loaded with major label variants
including decorative wraps or foils
► Automated packaging with almost seamless
changeovers eg between 4/6/8 packs
► Palletising technology reducing labour
requirements
► Challenge is to determine if the return on
investment and payback from efficiency, New line Tech Old line rejuvenation
flexibility and labour advantages justify the Diageo invests $120M in three new Pernod Ricard invests £40m
high CAPEX required bottling lines investment operations
Diageo expands its Illinois bottling facility Pernod Ricard investment is in hand-
► Business case will vary depending on product with 3 new high-speed lines. This packing operations for super-premium
segment, existing footprint, volume includes a 300-bpm glass bottle line and products where hand-crafted,
consolidation, growth plans and existing site a 260-bpm filling line for PET product bespoke speciality skills are needed
exit costs with examples of companies ranging
from full green field through to legacy line Mondelez invests $350M in Green field
Global CP company plant
rejuvenation plant in Mexico
investment
Global CP Co is planning multi-million
Mondelez is closing multiple plants and
investment in plant line upgrades to
distribution centres around the globe,
improve capacity, productivity,
while opening eight new "flagship" plants,
reliability and throughput on existing
including $350m site in Mexico
lines
Source: EY research

Part B: Experience of delivering value in your
industry
Page 32
Our deep industry experience enables us to bring you real insight
We know Consumer Products 98% of the

We provide you with deep sector and capability leading global CP
knowledge, drawing upon our globally integrated companies in the
organisation in order to bring you the right multi- top 500 of S&P
disciplinary teams to serve your needs
Global 1200
19 of 20
We know Spirits and Alcoholic Beverages beverage
companies in the
As one of the largest Supply Chain advisory practices S&P Global 1200
globally, we offer specific insight of the beverage
industry, from strategic to operational 5 of 5
top global spirits
companies
We know you… 10 years

Our teams have supported you on a broad range working with
of projects, including those relating to Bacardi's Bacardi
Internal Audit, Regulatory Compliance, Supply
Chain, Holding Structure and Acquisitions

Alcoholic beverage companies face three overarching drivers of
change, Supply Chains need to transform…
Drivers of change Imperatives
► Increasing volatility, uncertainty, complexity and ► Reframe strategic choices + optimize portfolio
ambiguity
Shifting ► Continued volume declines and overcapacity despite
► Realign the value chain to maximize consumer
immediacy
center of fragile recovery in mature markets ► Build agility and flexibility into the Supply Chain
gravity ► Diverse emerging markets now have a significant
impact on both top and bottom lines
► Be granular in choosing where to compete
► Reevaluate approach to risk
► Impact of negative volumes on fixed costs in mature ► Drive operational efficiency with an integrated
markets approach to margin management that puts margin at
Paradigm ► Escalating & volatile input and energy costs the core of the operating model
shift in cost ► Volatile currencies ► Analytical capabilities to understand margin drivers
structure ► Increasing cost of compliance and regulation ► Simplify organisation, process, suppliers and SKU’s
► Rising cost of talent ► Tackle infrastructure and sacred cows
► Consumer power (enabled by digital) is shifting CP ► Adopt consumer centric omni-channel strategy and
from B2C to C2B deliver consistent experience at every touch point
Shift in the ► Hard for companies to keep up with rapid pace of ► Build step change in ‘big data’ capabilities
balance of change ► Develop a new innovation playbook and ecosystem
power ► Difficulty in measuring the cost and effectiveness of
consumer engagement
of entrepreneurial partners
► Demonstrate positive impact on society
How are others addressing these challenges?

Diageo: Cost optimisation plan to deliver £200m in annual savings by 2017. Pernod Ricard: Expects "marginal" gross margin
“In emerging markets the more discretionary nature of spirit consumption has hit improvement; Allegro efficiency program to generate
Diageo's growth far more severely than the rest of staples. This has put pressure "tangible savings" in 2014. Organic EBIT growth guidance
on margin evolution as operating leverage weakens” of 1-3% reiterated
— Credit Suisse, 28 April 2014

Growth in the Spirits industry will be predominately driven by
emerging markets in Asia-Pac
2014 2018 Questions?
► Asia-pacific specifically China ► China will continue to grow in

and India and Eastern Europe spirit volume from 5.6bn litres to
► What proportion of Bacardi’s
have the highest volume in 7.1bn litres and India growing
spirit volume will account for
litres for 2014 and show the consumption by 369m (16%
China’s market share?
highest growth in volume over volume share) in 2018 It is
the next five years predicted China’s market share
Spirits will grow from 25% to 29%
► Global spirit volume is due to
increase by 11% over the next 5
► China and Europe currently years, how can Bacardi capture
have the largest global market ► Other growing markets include
their share and beyond?
share at 20% followed by the Eastern Europe, Russia, US,
US at 13% Middle East and Africa
► How can Bacardi be more present
in growing markets?
► USA, Japan have one of the ► USA, Japan, Middle East &
highest volumes of RTD’s for Africa Latam (Mexico), have the ► Japan, Middle East and Africa,
2014 which is approximately highest predicted volume Latam are growing, what products
800-840m litres growth for 2018 are needed to drive share?
Globally RTD volume will increase

RTD ► USA (20%), Japan (16%), ► Eastern and Western Europe ►
by 8% over the next 5 years , How
Western Europe (20%), hold and Latin America are
some of highest share of predicted to increase their are Bacardi going to grow in this
RTD’s as of 2014 RTD volume within the next 5 space?
years
► Other markets for market ► How can Bacardi be more present
share include Australia (14%) ► USA (21%), Western Europe in emerging markets?
and Eastern Europe (5%), (20%), Japan (17%), Australia
Latam (7%) (16%) have the highest
predicted market share for
2018

Our senior Commercial team have brought challenge to a number of
strategic contexts within leading Consumer Products companies
Strategic Reviews (multi-product and Strategic Operating Reviews (Group

country) Commercial Due Diligence
and Multi–Country)
Global Spirits Manufacturer Global Food Global Drinks Manufacturer

 Carried out multi-market consumer and market  Manufacturer
Developed overall group strategy (product  Evaluated market, consumer and competitor
trend analysis, indicating areas for investment portfolio, market focus, NPD priorities) and trends, including through a consumer survey
through A&P and M&A defined financial algorithm and targets  Analysed price trends by category and
 Created and launched new products (brand  Integrated work with European Marketing units customer
extensions, new categories) based on to create standard operating review process  Completed diagnostic on gross margin,
consumer insight and benchmarking processes indicating room for GM improvement in
 Worked through situation analysis, market
 Ran strategic and competitive planning particular categories
opportunities and competitive threats
processes across European markets  Evaluated consumer potential for innovative
 Implemented revenue realisation and new products; international benchmarking and
 Developed pricing and trade terms strategy to promotional optimisation projects to drive analysis of current categories (tonic, ginger beer
increase gross margin immediate performance etc.)
Revenue and Mix Management Global Brand Strategy 3-Year Operating Plan Development
Global Snacks Manufacturer Global Food Global Snacks Manufacturer

 Developed “9 Box” framework for SKU by SKU  Manufacturer
Reviewed scope for leading ethnic food brand  Operating review and opportunity evaluation to
optimisation to secure its position in rapidly maturing market identify scope for optimisation and game
changers
 Developed initial hypotheses and facilitated  Quantified potential developments of different
multifunction workshops to develop plans to market sub-segments/premiumisation  Detailed POS/consumer analysis to identify
drive 2pp of gross margin improvement scope for distribution, pricing and range /ROS
 Evaluated brand potential to stretch into new
impacts “wring the sponge dry”
 Evaluated, quantified and prioritised work plan segments and recommended roadmap for
to deliver improvements (linking into budget evolution  4 strategic initiatives identified to transform
requirements to find gross profit for re- share (trade story/economics; route to market;
 Quantified volume and profit scenarios for
investment) occasion target and private label push back)
different price and quality positioning
 Accelerated share growth, including reducing
private label shares

We have significant experience in delivering Supply Chain services in
Spirits and Alcoholic Beverages
A selection of our Spirits & Alcoholic Beverages relevant projects in the last 5yrs…
Value Operating S&OP / Operations Segmented

Client Project
Identified Model Inventory Excellence Supply Chain
$1bn (Cost & Global Procurement
Cash) Transformation   
Global Supply Chain
£45m
Operating Model   
Differentiated Supply
Global Spirits
Company
£171m Chain & Complexity
Reduction
 
Global S&OP Design &
£100m
Implementation   
10% in scope
spend
Cost to Serve   
Global Beer
Company €7.8m Manufacturing Excellence    
European Spirits
12% DIO Inventory Optimisation  
Company 2-4% Logistics
Spend
European Cost to Serve  
Global Drinks 6-8% Logistics Pan European flow
Company Spend optimisation   
Our Supply Chain team have delivered real value though designing
and implementing global trade and supply chain transformation
Case Studies Outputs
Baseline distribution network flows Preferred future scenario

We identified over
€40m annual
savings for a leading
CP company through
a European plant
strategy and network
design that also
underpinned Eastern
European growth
plans
Identified £15-30m Alternative sourcing Network map

savings for global
tobacco client that
faced complex supply
chain challenges in its
African market and
wanted a clear
strategy for growth
that navigated the
evolving Africa trade
blocks

Part C: Capability to secure value for Bacardi
The Bacardi Network & Supply Chain Reinvention project requires a
New
unique blend of Commercial, Supply Chain and Tax to deliver results

► We are proposing a multi disciplinary team spanning our Commercial, Supply Chain and
Tax practices to work jointly with Bacardi on this key project
Commercial
► Lead Market / industry analysis
► Lead business and market engagement and
commercial interviews
► Develop overall aligned business strategic
► Jointly lead portfolio / growth plan
innovation and complexity
analysis
Commercial
► Joint working on market
access issues and impact of
duties on market entry
Supply chain Tax

(direct and indirect)
Supply Chain
Tax
► Lead end to end supply chain and
performance benchmarking ► Determine available duty rates and
available reliefs and tariffs
► Develop future bottling strategy and
potential consolidation ► Coordinate global network of local EY
► Jointly lead trade flow tax specialists to check for local
► Sourcing strategy assessment and co- and duties analysis variations
location potential
► Test operating model design and
► Develop future operating model strategic network change protects or
options improves existing tax structures

Our EY Consumer Products Capability Framework embeds our
extensive experience of working in Drinks and broader CP industry
Through our extensive work in CP and more specifically the Drinks industry, we understand the market challenges you are facing, and the
business imperatives that these drive – our capability framework provides you access to our latest innovation:
Industry challenges EY CP Aligned Capability Framework

Changing relationship ► Consumers looking for engagement with companies
with the consumer and brands
Consumer
Behaviour
► Declining effectiveness of traditional media
Tougher regulation and restrictions Commercial Digital
1
►
Strategic Strategy & Disruption

Limited volume growth ► Changing consumer preferences and tastes
Transformation Excellence
in established markets ► Increasing duties
► Ability to drive revenue through higher prices
► Underutilised manufacturing capacity
Business Driven
Struggle
Optimisation
Growth
Strong volume ► Volatile markets
opportunities in ► Undeveloped categories/formats Technology
emerging markets ► Intense competition to gain a foothold
► Underdeveloped infrastructures Integrated
2 Operational Supply Chain Reinvention
Increasingly complex Consumers utilising multiple channels with limited
Cost challenge
►
routes to market loyalty Excellence

► Direct to consumer and retailers Business Driven
Increasing illicit trade
Execution
►
Technology
Rising and volatile cost Rising input and energy costs
– Next Gen ERP
►
pressures ► Volatile commodities and currencies
► Scarcity of supplies like leaf and tow
Increasing cost of compliance and regulation Enterprise Cost &
►
Risk Management
Stakeholder
3 Business Cash Effectiveness

pressure
Increasing pressure to ► Growing regulations /tax burdens on ‘harmful’ products

Resilience
demonstrate value ► Tax transparency and BEPS - risk present throughout
contribution to tax life cycle
stakeholders ► Sustainability is becoming a prerequisite Strategic Tax Planning & Compliance

Commercial Strategy & Excellence: our Customer Practice consists of
New
about 2,500 professionals globally

Our 2,500 Customer practitioners worldwide are split 30% Americas, 50% EMEIA and 20% Asia and we are growing
rapidly through targeted acquisitions (e.g. Parthenon)
2,500 Customer
professionals globally
Americas EMEA Asia-Pacific

2014 Advisory 2014 Advisory 2014 Advisory
Customer 750 Customer 1250 Customer 500
Professionals Professionals Professionals
EY Customer practice named a CRM

Watchlist Winner 2013

Commercial Strategy & Excellence: our global Customer practice is
New
grounded on six guiding principles
Deep customer experience across the entire customer

1 Functional excellence spectrum
2
Working in partnership with all EY service lines to
Holistic solutions support client issues
3 Deep sector insight Bringing deep sector experience and innovation to solve
strategic customer issues
4
Fully leveraging customer innovation, knowledge and
Global footprint talent across borders
5
Our services are underpinned by robust analytics and
Analytics-driven innovative technology enablement tools
Our approach is linked to measurable, sustainable

Outcome-oriented
6 and objective
financial results while remaining independent and
objective

Commercial Strategy & Excellence: our core capabilities provide a
holistic approach to consumer-centric transformation
Enabling Shareholder Value through Integrated Strategy and Implementation

EY’s Commercial Transformation Capability Framework
Consumer & Category
1 Commercial Commerce Pricing Strategy Sales & Customer &

Shopper Growth, Brand &
Transformation Marketing Brand
Portfolio
Strategy Strategy
Strategy
Effectiveness Management
Executional Merchandising Shopper marketing Trade terms

2 Effectiveness performance
improvement
performance
improvement
Sales force
effectiveness
evaluation and
improvement
Marketing and sales reporting and associated data management
Portfolio, Shopper
Commercial
3
Brand portfolio MROI and media mix
assortment, space segmentation and
Analytics valuation and optimization
and placement store clustering
rationalization
SaaS platform / tool for Marketing and Sales investment planning and
optimization
Trade Processing Trade reconciliation

Trade promo accruals,
4 Managed accounting, and and dispute resolution
Trade settlement and
payment
Services reporting

New
EY Research and thought leadership: Digital, social, and channel

We have deep experience in commercial improvement programmes
New
across modern and traditional trade in mature and developing

markets
Commercial Turnaround Promotional Strategy Trade Strategy
UK SOFT DRINKS UK ALCOHOLIC RUSSIAN ALCOHOLIC

COMPANY BEVERAGES COMPANY BEVERAGES COMPANY
International Growth Strategy
US ALCOHOLIC BEVERAGES Margin Improvement

COMPANY
INTERNATIONAL FOOD
COMPANY
Market Assessment & Diligence
US SPECIALTY COFFEE
Promotions Improvements
COMPANY
INDIAN FMCG COMPANY
Consumer Pricing Studies
US ALCOHOLIC
BEVERAGES COMPANY
Consumer segmentation Promotion Management Capability

Trade Strategy
CHILEAN ALCOHOLIC INDIAN FOOD FMCG
BRAZILIAN ALCOHOLIC COMPANY
BEVERAGES COMPANY BEVERAGES COMPANY
Pricing & Promotions Review Commercial Due Diligence Worldwide Pricing Initiative
GLOBAL ALCOHOLIC GLOBAL COFFEE GLOBAL TOBACCO

BEVERAGES COMPANY CATEGORY LEADER COMPANY

EY is ranked best in class for Supply Chain Management
IDC MarketScape Worldwide Supply Chain Management Business Consulting Services Vendor Assessment
Assessment Key Findings
1► Among most capable delivering value-

creating innovation
2► Most capable at helping clients expand their

Supply Chain into new geographies, reduce
Supply Chain costs, and improve Supply Chain
efficiency
3► Among the best when it comes to
maximising the value of the project, and
supporting business change across the
organisation
4► Clients consider us to be better than many of
our peers at helping them manage Supply
Chain risk, transform Supply Chain
processes, and comply with Supply Chain
regulations
5► Better than many of our peers in the areas of
challenging corporate culture, leveraging
Supply Chain talent, directly improving
overall commercial performance, and
meeting project timelines
Source: IDC MarketScape Vendor Assessment 2014

Our Supply Chain & Operations Practice consists of more than 2,400
professionals globally
We have a proven track record of successfully designing and implementing Supply Chain operating models, working with
70% of the Top 30 Global Consumer Product companies. We invested heavily in our intellectual assets around Supply
Chain Operating Models and tailor these to each specific client’s needs to achieve real business benefits.
Selected EY Locations
More than 2,400 Supply

Chain & Operations
professionals globally, of
which more than 1000 in
EMEA
Americas EMEA Asia-Pacific1,2

2014 Advisory SC&O 2014 Advisory SC&O 2014 Advisory SC&O
850 1,060 565
Professionals Professionals Professionals
1 Includes India
FY2020 Directional FY2020 Directional FY2020 Directional 2 Excludes 6,700 Global
2,100 2,100 1,550
Target Target Target Talent Hub resources
Driving improved Global Supply Sustainable Procurement Supply & International Supply Chain Supply Chains in Making your
Supply chain Chain Logistics and Insights Demand Chain Trade Segmentation Distress supply
results Warehousing Executive chain perform

EY’s Supply Chain Reinvention Capability Framework
Digital, Analytics and IT Enablement
Strategic Integrated Supply Chain Supply Chain Network and

Architecture Operating Model Flow Optimization
Performance Management
Supply Chain Segmentation & Synchronization
Financial Supply Chain

Integrated
Operational
Excellence Route-to-
IR & Complexity Commercial Run-to-Target
Market
Optimization Excellence Manufacturing
Optimization
Supply Chain Supply Chain Risk, Sustainability and Resilience

Resilience
Talent Development and Change Management

Each capability is underpinned by robust method and proven track
record for example in our alliance with P&G
Run to target manufacturing… IR and complexity optimisation
“Integrated Reliability” :
Developed jointly by
OEE Benchmark
Top Per f or mer -
Top Performers
FMCG 85%
Top Quartile
Top Quar t ile -
Foods
77%
Canning line 1
Heinz Eur ope (3
56%
mt hs)
Bottling Line 8
Sauces (3 mt hs) 52%
Bottling
QSM (3 Line
mt6hs) 56% P&G >500% increase in NPV/initiative whilst halving
Canning Line 4
Infant Feeding (3
61%
Time to First Profitable Case
mt hs)

The EY CP Capability Framework contains a number of tools which
will be key to delivering a successful project outcome for Bacardi
EY Capability Why is this a value add for Bacardi?
Growing Beyond Borders ► External view of strategic market and customer landscape
► inform and challenge Bacardi view of the 5-10year strategic
plan
EY Global Trade Excellence ► Rapidly quantify indirect tax implications of changes to

tool Bacardi manufacturing/bottling footprint to inform strategic
network scenarios and bottling location decisions
Network strategy and ► Capability includes: (Excel, CAST, SC Guru, EY proprietary)

design ► Assess network modeling requirements and ensure
appropriate tool for Bacardi scope and complexity
Change Management ► Following our change management approach we will begin

Framework the stakeholder journey from project day 1, driving
alignment and engagement across the business
Social Media Listening ► Insight into conversation drivers for selected Bacardi Brands
Analytics on social media
► Enriches engagement during stakeholder interviews

Example tools: Growing beyond borders and customer analytics
tools support market growth planning
Both Tools fully included in our offer
EY Growing Beyond Borders™ is an EY-owned tool that Social Media Listening

aggregates and displays macroeconomic and other data We have teams dedicated to in-depth customer analytics
(nearly 1,000 data items) from a variety of sources to focusing on deep dive analysis into the conversation
enable clients to understand the global landscape drivers for the selected client products; which we then
This is used in hot house sessions to challenge, accelerate benchmark against the respective competitors.
thinking and gain consensus
Analyzing positive and negative consumer sentiment can
provide rich additional insight on growth opportunities
Example tool Screenshots:
and brand perceptions
Example Outputs

Example tools: Global Trade Effectiveness Tool combines Supply
Chain and indirect tax to provide a rigorous approach to trade flow
analysis
Unique capability enables mapping current global flows and quantify the duties impacts of changes in
footprint and/or bottling strategy (local vs. central) - key to evaluating strategic network scenarios enabling
quantification of impact of heritage constraints
Global Trade Effectiveness Tool

Ability to filter
by material type
Source country
options
Calculated
Total Landed
Cost – for
Visualization of
alternate flows
flow options
(Logistics,
Material, Duties)
% Duty Rate
Payable under
alternative duty
regimes
Tool fully included in our offer

We have helped more than 50% of major global CP Cos redefine their
New
Operating Models
Consumer product operating models have evolved towards centralization and above market
hubs, delivering significant benefits along the way
High
• 88% of top 30 CP Co’s have
adopted centralized (and tax
Global and regional
effective) hubs to manage hubs
supply chain
“Think Local; Act
• Traditionally regional hubs, but Global”
Planning hubs • Creation of
there is a move towards multi- region and
regional consolidation and • Creation of global hubs,
increased role of global Manufacturing and cross market managing end
logistics planning hubs, to end flows of
Benefit
• Driving transformation by rationalization managing end supply chains

to end flows of from suppliers
leveraging scale, Procurement • Continual
to customers
review of supply chains
simplification, replication of centralization
manufacturing from suppliers • Manufacturing
best practices and • Procurement footprint to to customers procurement,
transparency to achieve: strategy and close factories • Could be logistics,
sourcing / warehouses virtual or co- category
• GP improvement e.g. 10- Country model decisions and outsource located strategy
consolidated logistics definition and
20% COGS • Country above markets Consolidation planning
• Agility and manager is for key
•
• Creation of
“king”, owns of
responsiveness: e.g. 20- local
commodities management supply chain
30% inventory reduction and • Creation of above markets companies in
manufacturing,
trading around tax effective
customer service up to logistics,
companies in locations
procurement, product
99.8% etc.
tax effective technologies
locations
• Support innovation at scale
Low
Time

Part D: Methodology that brings Bacardi
along the journey
We apply key principles to underpin our approach
Principles Implications for our proposed approach
• Bringing key stakeholders on the change journey starts from day one
Joint Change Journey • One team
• Multiple points of engagement across the business
• Take a business-centric versus a Supply Chain-centric view

Seek Business Led
• Connect with senior brand and commercial leaders in a considered way
Change
• Build capability so Supply Chain is an enabler of market value and growth
• Design driven by the requirements from the market / customer as well as

Build a Customer Centric balance between on / off trade and traditional vs online
Segmented Supply Chain • Take an end-to-end view, not just material views – define segmented
capability to optimise cost, service, flexibility and quality
• Constructively challenge “Heritage” assumptions through facts and value

Seek Breakthrough
• Develop and evaluate ideas including partnering & collaboration
Thinking
• Challenge assumptions on localisation, customer service, etc
• Define where complexity adds value versus where it destroys value

Focus on Value Adding • Focus on simplifying the portfolio management process in order to be
Complexity both efficient and effective e.g. more value add promotions / less value
destructive bill of material complexity
• Structural redesign cannot be considered in isolation, operational changes

Build Structural and
will have major impacts on the footprint requirements (e.g. supplier
Operational Excellence
proximity, production efficiency and logistics capacity)

We ask the big questions in an approach designed to drive
breakthrough thinking
We will ask big questions: Why? Why? Why not? Is it real? How about…?
Growth Drivers Cost Drivers
How do we enable faster Footprint complexity: Europe

innovation and time to market? and India
How can Supply Chain help Heritage vs non-heritage?

Bacardi get closer to customer
and consumer? Distil vs. fill?
How do we improve initiative In house vs co-packers?

success rates and NPV?
Regional mega sites vs localised
White space growth opportunity: customer proximity?
Africa and China?
Glass co-location/ productivity?
Value added complexity vs bad
complexity? …?
Our approach is underpinned with a proven and pragmatic approach
to change management
Change starts from Day 1
1. Engaging Bacardi senior

stakeholders
2. Understanding the impacts
on the current state
3. Informing the plan for
managing change

Design Reference Groups (DRG) are used to expand and test our
thinking and at the same time drive wider business engagement
Principles Team Structure
DRG available to the core team as an ► Functional specialists across Plan, Make, Move,
advisory group Finance, Change, People & Org, IT, Tax, Legal,
Procurement, Commercial, etc. Provide input into
functional change management including EY SMRs
DRG responsible for providing input and
guidance to the core team
DRG members identified from across the

markets as well as from corporate
functions (e.g. legal)
DRG does not have accountability for sign

off but some stakeholders may be
members of the DRG too
Core team draft material and issued to ► Regional, Cluster and Group leadership
DRG for off-line review ► Visible sponsors/advocates of the change
► Provide change management direction, set
strategic communications and provide
Face-to-face workshops used to walk input to design principle.
through designs and gain buy-in

Revised
Our approach follows four phases of work during which we will use
our principles to drive the solution for Bacardi
22 weeks 8 weeks 9 weeks
0. Brand and Market Engagement
1. Future Network Requirements & 2. Future State Network 4. Detailed

3. Implementation Planning
Baseline Model Design execution
Design the future state
Understand requirements for Develop implementation Implementatio
Objective
Operations model:
the future state Bacardi plans for the journey to the n of the Future
Footprint and supporting
network and develop the future state Operations Operations
organisation, capability,
baseline model model Model
process and systems
0.1 Brand & Market Engagement (ongoing change and comms)
Out of
Market /
1.1 Scope for
Industry Analysis
Network Footprint this RFP
Key Activities
E2E Supply Chain & 2.1 Detailed Design &

1.2 Sourcing Strategy
Performance Benchmarking
Implementation
3.1
Trade Flows & Duties Planning
1.3
Analysis
Supply Chain
2.2
Management Impact
1.4 Portfolio / Innovation
Complexity Analysis
Outputs
► Strategic 5-10 year demand ► Network footprint design ► Strategic implementation

► Baseline model and strategic ► SCM design (organisation, road map
network scenarios (including process and systems) ► Detailed implementation
glass sourcing) Finalised benefit case &
►
plan for Phase 1
► Initial view of benefits case phasing ► Implementation readiness

New
Phase 1 - Future Network Requirements & Baseline Model
SteerCo Mobilisation & Generate Ideation &
Validate & Commit
Analysis Engagement Challenge
Supervisory
Feb Mar Apr May Jun
Milestone
Kick-off SteerCo
‘Hothouse’ 1 Idea Generation ‘Hothouse’ 2 Aligned Breakthrough
Programme
Mobilise core team Develop & maintain business case
Governance &
Change Management Initiate governance ‘Selected’ 1-to-1 Broader 1–to-1 Hypothesis validation
interviews interviews & commitment
Agree & activate (Mktng/SC/Finance) (Mktng/SC/Finance) (As required)
change management
1.1 Collect available

Capture & challenge
Bacardi data Understand Bacardi
context & vision global/regional/local Validate & refine
Market / Industry constraints strategic demand
External context –
Analysis trends & change scenarios Refine & finalise
Generate strategic Refine strategic
drivers analysis Phase 1 output in
demand hypotheses demand hypotheses
preparation for mid-
1.4 Collect & analyse Understand Bacardi Capture & challenge July Board meeting
available Bacardi data context & vision constraints Validate & gain
Portfolio Complexity Assess Bacardi Innovation/PLM capabilities gaps/ commitment to
External context – complexity &
Analysis trends & change
inefficiencies
heritage hypotheses
drivers analysis Generate and refine complexity & heritage
hypotheses
1.2 Collect & analyse Understand Bacardi SC Capture & challenge Validate & agree
available Bacardi data context & vision conflicts strategic scenarios
E2E Supply Chain Generate strategic Refine strategic (including glass
& Benchmarking External benchmarking network scenarios network scenarios sourcing)
& trends analysis Validate & sign-off
Build baseline network model model
1.3 Collect available Workshops on advanced
Understand Bacardi Validate & agree
Bacardi and global network options (FTA,
Global Trade scenarios strategic global trade
Trade Flows & Duties duty data Customs processing)
scenarios + agree
Analysis Create Baseline GTE
Create GTE model and Overlay GTE model and
model on current logistics overlay
analyse scenarios trade offs
flows & tariffs

0.1 Phase 0 – Brand and Market Engagement*
Key Activities Example Outputs
► Develop overall project engagement and buy-in to project
Integration workshops and newsletters
approach, emerging findings and final outputs
► Build Project governance:
► Project kick-off & team mobilisation
► SteerCo meetings and progress updates
► Reference group kick-off and ongoing engagement
► Develop engagement plan:

► Stakeholder mapping
► Agree appropriate form of communication per
stakeholder (e.g. worskhops, interviews, calls, hothouse
activities etc.) Stakeholder analysis, map and
► Agree frequency of communication per stakeholder communications plan
► Identify appropriate core team ‘face-off’ per stakeholder
(both EY & Bacardi)
► Finalise and Initiate engagement plan
► Carryout initial ‘Hothouse’ workshop to develop and test

hypotheses coming out of Phase 1 market interviews –
creating action plan to finalise ‘Hothouse’ strategic vision
workshops
► Carryout 2nd ‘Hothouse’ workshop to finalise scenarios
Outputs
► Regular and structured communications with stakeholders

► Stakeholder alignment and transparency on objectives
► Finalised hypotheses which have been reviewed and
signed-of by key stakeholders
► Clear project governance and progress transparency
*Detail of proposed Bacardi commercial interviews and stakeholder alignment shown on page 80
1.1 Phase 1 – Market and industry trend analysis
► Conduct interviews with 20-30 Business leaders across
functions to develop a 360 degree view of Bacardi 5-10year Future Sales Growth Plans by Heatmap (e.g. GDP, Bacardi
strategy plan* Market and Category presence vs. peers)
► Agree interviewee list (including: CEO, CFO, Commercial leadership,
CEOs of regional hubs, and operational leadership, Brand and
marketing agencies)
► Agree appropriate team member(s) to conduct interviews (to ensure
appropriate seniority) and carry out interviews xxxxxxxx
► Challenge and test strategic vision to align Steer Co on growth,

market mix and strategic targets to be used in project analysis
► Challenge and test constraints (including heritage constraints)
► Ensure understanding of customer/consumer requirements from
Brand/marketing teams & agencies
► Leverage internal and external (EY) industry knowledge to Consumption and Commodity Trends
understand a 5-10year view of:
► Customer & consumer trends & channel requirements
► Industry trends impacting Supply Chain (sourcing shifts, in-direct tax,
organisational changes, etc.)
► Industry trends in bottling locations impacting Supply Chain
requirements (e.g. heritage barriers)
► Specific Alcobev market challenges (India, China, Brazil, US, etc.)
► Carry out social media analysis to understand what current
positive and negative customer sentiment (buzz) is on key Listening to Social Media Analysis
social media platforms
Outputs
► Documented and agreed strategic 5-10yr plan

► Mapping of 5-10 year strategy on network requirements
► List of hypotheses for testing through network scenarios to
inform initial ‘Hothouse’ workshop
*Detail of proposed Bacardi commercial interviews and stakeholder alignment shown on page 80
New
The 6Cs are how we will drive the Commercial interview process
Example of questions and challenge EY will bring to the commercial interview process
► What are historic and future trends in consumption – will white spirits continue to grow
ahead of brown spirits in developed markets due to consumer focus on mixability?
Consumer ► How will premiumisation continue? Will the focus be on aged malts and/or super premium
vodka? How big will local spirits be in emerging markets?
► What is the likely evolution and consolidation in the retail and on trade environment over the next
ten years and how will this affect how Bacardi needs to sell and deliver its products?
Customer ► Will global/regional off trade customers move to central purchasing platforms?
► What likely changes will there be in trading terms and how will this affect Bacardi?
► What are the likely changes in duty and how will this affect major potential channels e.g. when and how will the
Indian domestic spirits channel open to international spirits?
Channel ► What is the opportunity for direct to consumer e-commerce, particularly in premium/ super premium spirits?
► How might 3 tier route to market change in the US over next ten years and what impact on consumption?
► Which countries are in which stage of development of spirits? Will European markets evolve along the lines of US
trends?
Country
& City ► How will emerging markets grow? Will brown spirits be replaced by white spirits over time?
► Which cities will be the key consumption hubs and will this influence second tier cities? If so, how?
► To what extent will actions of Diageo, Pernod Ricard, Brown Forman, Campari etc. drive change in the industry and
what impact will this have on Bacardi’s consumers and customers?
Competition ► How will Suntory’s recent buying spree affect future shape of the market? Will there be further consolidation?
► What is the potential for beer/spirits tie-ups amongst competitors and how will this impact Bacardi’s influence?
► What are the key provenance constraints and how important are they really? E.g. to what extent is Grey Goose’s
French heritage critical to consumers and how would they react if production were moved?
Constraints ► What are good case studies of change that consumers have reacted positively/neutrally to? (e.g. Johnnie Walker de-
aging premium whisky range)

The approach starts with EY led “Hothouse” events bringing
together markets, commercial leadership, branding agencies,
finance and SC
Objective - Engage with senior Brand and Country Commercial leadership to align on breakthrough opportunities and
position the Supply Chain as a key growth enabler
1 Generate
engagement 2 Ideation and challenge ‘Hothouse’ 3 Validate and
commit
Through interviews, This is a focused event which will be run in collaboration with Buy-in and active
data gathering + EY Senior Bacardi Leadership from Brand, Country Commercial, ownership by markets
insights Finance, external Agency* and Supply Chain. The idea is to bring and commercial
big complex visions to the table, to research and test them in an
accelerated safe environment.
1. 5-10 year growth 1. Alignment to business
trends This will be facilitated by a Senior Commercial Leader (proposed objectives
to be Elaine Parr) from EY. 2. Agreed hypotheses
2. Brand & marketing
plans and action plans
3. Voice of the 3. Agreed key messages
customer and for the Board and
consumer from Shareholders
Bacardi agencies
4. Social listening
insight
Day 1 Introduction & tradeshows
5. Supply Chain & Idea brainstorming
Global Trade Day 2 Facilitated break out sessions
opportunities Challenges / issues / big ideas generation
6. Portfolio insight Day 3 Feasibility Assessment

Presentation to Senior Leadership
*External Agency: Not included in EY scope of fees

Revised
1.2 Phase 1 – End-to-end Supply Chain and Performance Benchmarking
Benchmarking Advanced OEE Performance Current vs Optimal Inventory

 Internal and external benchmarking of Manufacturing and Logistics Analytics Assessment
to understand future capacity needs and potential consolidation: (#
lines/bottling sites/distilleries, Utilisation & Efficiency vs. peers and
leading practice (including, OEE, cost per case, cost % revenue)
Glass Sourcing
 Review global sourcing strategy with a focus on glass to identify
potential collaboration & co-location opportunities
Operating Model
 Review org structure vs. peers for both market and central Geneva
Operating model design & process Maturity Assessment
Supply Chain functions (local and central overheads)
 Review planning and forecasting processes (segmentation,
production strategy, parameters, forecasting methodology, etc.) and
their potential impact on network capacity requirements
 Identify organisational change requirements to support scenarios
Supply Chain Design
► Review inventory policy, levels and locations to define optimal future
state and map impacts on footprint requirements
► Create and validate baseline network model
Impact assessment & Opportunity Matrix
► Quantify scenarios based on output from ‘Hothouse’ workshops
Outputs 2. Executive summary

$18.4m of must do items, $5.1m ‘easy wins’ – many achievable over short term; Glass sourcing
improving customer payment timeliness represents major challenge over medium term
Maximum value
Indicative benefits case for 2-3 key scenarios as agreed by key

Total
of opportunity # Opportunity Type Time Ease ($m)
Must do
►
14 Accelerate recover of deferred tax assets Process MT Medium 7.5
25 Reduce safety stocks and EOQ set in SAP Housekeeping ST/MT Medium 3.0
17 Extend supplier terms to 30 days Terms ST Easy 2.8
$19.5m $18.4m 32 More frequent shipping and dispatch Process ST Medium 2.2
4 7 Encourage wire payment method Terms MT Medium 1.5
stakeholders (though ‘Hothouse’ activities)

Challenges Must dos 20 Disable ‘pull forward’ on supplier payments Process ST Easy 1.4
14 18.4
Challenges
4 Improve customer payment timeliness Process ST Medium 9.2
HIGH 17 17 Extend supplier terms to 60 days Terms MT Hard 3.6
25 27 Reduce slow moving inventory Housekeeping LT Hard 2.8
27 16 5 Increase debt currency (overdues) to 90% Housekeeping MT Medium 2.0
6 Increase debt currency (overdues) to 95% Housekeeping LT Hard 1.0
5 32 28 Continued roll out of LEAN and Dft Process MT Medium 0.9
19.5
Initial view (per scenario) of organisation, capability, process and

7 20 Easy wins
28 Extend supplier consignment inventory Process ST/MT Medium 0.9
6 24
9 Renegotiate insurance prepayments Process ST Easy 0.9
►
21 Reduce payment run frequency Process ST Easy 0.8
9 24 13 Accelerate enterprise zone tax recovery Process MT Easy 0.8
21 22 Introduce P cards for small vendor payments Process ST Easy 0.7
18 Set due date from invoice receipt date Process ST Easy 0.6
13
8
systems requirements to support future state operations covering

22 Move small customer payment to credit card Terms MT Easy 0.2
18 10 Bi weekly payroll payments for exempt staff Terms ST Easy 0.1
19 Supplier consignment invoicing frequency Process ST Easy 0.1
23 15
LOW 29 11 SERP advances Process ST Easy 0.03
26 5.1
31 30 8 Lower priority
10
1 19 15 Extend use tax exemptions Process MT Medium [0.5]
$1.9m 23 Move selected production in house Process MT Hard 0.4
both in-market and central Geneva Supply Chain organisation

$5.1m 11 2 29 Extend % of customer scheduled orders Process MT Medium 0.4
26 Centralised warehousing Process MT Medium 0.3
Lower priority Easy wins 31 Reduce finished goods safety stocks Housekeeping ST Medium 0.2
1 Frequency of customer consignment invoicing Process ST Medium 0.1
1.9
DIFFICULT EASY Ease of 44.9
implementation Non-cash opportunities
3 Claw back erroneously taken discounts Housekeeping ST Medium 6.0 EBIT
2 Ensure system terms match those in contracts Housekeeping ST Easy 0.02 EBIT
12 Production asset reclassification Housekeeping ST Easy 2.6
Time
ST: <6 months, MT: 6-12 months, LT: 12months+

We have a holistic approach to unlock these savings as trade off
decisions will need to be made to optimise the Supply Chain
Cost Levers & Cost Curve
Manufacturing
►Line efficiency (OEE)
►Capacity utilisation
►Fixed cost vs. variable
cost balance
Outbound Transport
►Route to market
(direct vs. indirect)
►Truck fill
►LSP freight rates
►Customer ordering
patterns (MOQs,
Logistics incentives)
Materials costs
►Strategic sourcing
►Supplier co-location
►Supplier inbound
freight efficiency
(truck fill, MOQs and
incentives)
► Understanding and balancing these cost trade-offs is critical
to designing the optimal future state network
Trade & Taxes
►Customs & excise
► In addition to this the network solution will also be defined
and constrained by the service offering strategy and cash
►Free Trade Zones
targets which will inform the network design
►Tax incentives

1.3 Phase 1 – Trade flows & duties analysis
► Mapping of current cross border flows, customs duties and Assessment of current tariffs vs. optimal
trade barriers for raw materials and finished goods
► Gap analysis of trade flows and duty rates vs. optimal utilising
the Global Trade Excellence (GTE) tool including trade tariff
data and logistics costs
► Local vs. global sourcing/bottling decision trade-off analysis
(macro landed cost mapping and opportunity analysis)
► Recommendations for:
► Changes in which tariffs to use to optimise current
flows on raw materials and finished goods
► Bottling changes (central, in market, etc.) to optimise
tariff/logistics cost trade-offs
► Strategic sourcing changes based on tariff/logistics
Material flows and total delivered cost impacts
cost trade-offs – key commodities only
► Hot house session(s) on key trade flow opportunities to
challenge, test appetite and build consensus on scenarios to
test further
Outputs
► Identification of duty costs and rates for existing and
potential trade flows which is a key input to future scenario
modelling
► Quantification of short term duty and trade flow
improvement opportunities
► Identification of potential future scenarios to alter sourcing
location choice, trade routes and bottling location choice as
input to strategic scenarios

Revised
1.4 Phase 1 – Portfolio/innovation complexity analysis
► Phase 1 approach will consider Innovation and Product

Lifecycle Management (PLM) along three lenses:
► Lens 1: Portfolio complexity – Mapping out a high level

Hypothesis led Portfolio Analysis
view of the complexity of the current portfolio but also the
anticipated future direction e.g. responses to drive growth
Product
► Lens 2: Product complexity – Assessing at a high level the Portfolio
specification
Identify changes to
nature of product complexity in today’s portfolio and complexity
complexity
embed into BAU
specifically how this represents itself in the Supply Chain
e.g. manufacturing change-overs, lack of procurement
leverage etc.
► Lens 3: Complexity controls – Assessing the current
Bacardi Innovation and Product Lifecycle Management
processes and related controls Portfolio Segmentation Procurement Complexity
► Develop and agree principle for improvement to manage

value add complexity and remove non-value add complexity
► Map impact of proposed portfolio opportunities on
manufacturing capacity/footprint requirements
Outputs
► Nature of future complexity that the network will need to
cope with
► Opportunities to improve balance of ‘Good’ vs ‘Bad’
complexity as foundation to the future
► Benefit estimation based on defined future state

2.1 Phase 2 – Network Footprint Detailed Design & Sourcing Strategy
► Sign-off Scenarios from Phase 1

► Perform scenario sensitivity analysis and risk/mitigation Future State Network Model
analysis
► Overlay flow improvement opportunities to scenarios based
on output from performance improvement assessment (e.g.
customer direct flows, RTM opportunities, etc.)
► Validate scenarios and benefits cases with stakeholders
► Review/alignment sessions to review model outputs with
stakeholder group and agree preferred option for final
benefits case and phasing analysis Scenario Assessment
High cost 1,000
► Create and run detailed, phased scenario model based on
preferred scenario including: 900
Total netw ork cost

Option 5
As-Is
► Time phasing 800
Option 4
► Inventory locations/quantities 700
Blue Sky Option 3
► Glass sourcing strategies/location changes 600
Option 1 Option 2
► Size warehouse needs Low cost 500
► Develop ‘Make vs. Buy’ assessment Service

50 60 70 80 90 100
► Finalise benefits case including estimated cost impacts and Low service
% of volume within target lead time
High service
implementation phasing
► Benefits case sign-off by SteerCo Flow recommendations
Outputs
China
Singapore Rest of Asia

China regional hub
► Finalised benefits case based on agreed preferred scenario India

Middle East & Africa
including phasing of benefits release Western Europe
► Indicative case for co-location of glass sourcing (eg for Europe European
DCs Eastern Europe
premium glass vs volume lines) or alternative options Americas

Americas

Revised
Our proven network design approach combines future market
2.1 growth plans with key inputs including customs and indirect tax
Customs, indirect tax and

5-10 year growth plans by As-Is & To-Be Supply Chain Business case & final
glass sourcing
product and market network design models network recommendations
opportunities
Recommended
Demand heat maps Customs & Duties cost As-Is Network structure & scenario
options strategies
Headings:
3005 90 3926 90 8419 20 9018 19 9018 39 9033 00 China
Wadding, gauze, Medical, surgical Other Electro- Syringes, Parts of
bandages etc. - Parts of plastics or laboratory diagnostic needles - machinery of
other nesoi sterilisers devices other 9018
Developed:
Singapore Rest of Asia
EU 0% 6.50% 0% 0% 0% 3.70% China regional hub
USA 0% 0% - 6.5% 0% 0% 0% 4.4%
Japan 0% 0% - 3.9% 0% 0% 0% 0
Australia 5% 5% 5% 0% 0% 0%
Singapore 0% 0% 0% 0% 0% 0%
Middle East & Africa
India
Range: 0-5% 0-6.5% 0-5% 0% 0% 0-4.4%
Developing:
Brazil 2% - 12% 14% 0% - 14% 0% - 16% 16% Western Europe
China 5% 10% 4% 4% 4% 6%
India 10% 10% 7.50% 5% 5% 7.50% Europe European
Indonesia 5% 5% - 15% 5% 5% 5% 5%
Mexico 15% - 20% 0% - 15% 0% 0% 0% - 15% 0% DCs Eastern Europe
Russia 10% 0% - 20% 0% 0% - 5% 0% 0%
South Africa 0% - 20% 0% - 20% 0% 0% 0% 0%
South Korea 0% 6.50% 0% 8% 8% 8% Americas
Turkey 0% 6.50% 0% 0% 0% 3.70% Americas
Range: 0-20% 0-20% 0-14% 0-14% 0-16% 0-16%
Duty rate using available trade agreements Low to High
Sales growth plans Network Costing

9 Hours Balloon vs Express 3
Sales revenue in €m DKK 9 Hours 3 Balloon Locations 9 Hours Express Only Locations
Future options
2.000 Transport Cost 16,298,107 15,329,814 15,206,439
Balloon Warehouse Cost 2,368,624 189,259 295,062
1.569 Balloon Setup Cost 2,232,000 744,000 2,232,000
1.500 17% Total Cost 20,898,731 16,263,073 17,733,501
1.227
14% 14% Incremental Cost vs Base Case 9,959,253 5,323,595 6,794,022
1.000 749 12%
20%
Total KGS 2,033,220 2,033,220 2,033,220
Base Case Cost*/KG 5.38 5.38 5.38
25%
526 13%
14% New Cost/KG 10.28 8.00 8.72
500 383 10%
12% % Fast Volume via Balloon 100.00% 7.77% 12.32%
231 14%
48% 46% % Fast Volume via Express 92.23% 87.68%
16%75% 15%73% 63%
76% Avg Fast Dropsize via Balloon 142 23 34
0 Avg Fast Dropsize via Express 208 208
2010 2011 2012 2013 2014 2015
Increase on Base Case Cost 2.32% 1.24% 1.58%
Costs in DKK
* for affected ship-tos
Glass opportunities ‘Make-or-buy’

decision support tool
• Plant locations
• DC locations
• Glass sourcing

We are proposing to use Supply Chain Guru due to complexity of
2.1 the Bacardi modelling requirement
Bacardi modelling requirement is advanced… Supply Chain Guru is our modelling tool proposal…
It is important to pick the right network modelling tool ► We have capabilities to carry out
for the job and not fit the job to the tool. network modeling using a number
of tools (Excel, CAST, SC Guru, EY
The right choice depends on the specific model
proprietary tools)
requirements and complexity, for Bacardi:
► Optimal Manufacturing footprint ► Our proposal is to use SC Guru to
► Strategic sourcing/ Supplier co-location options model the future state Bacardi
► Bottling locally vs. at source trade-offs network as we believe it has
superior capability in 4 key areas:
► Impact of efficiency improvements and changes in
manufacturing footprint on distribution network ► Modeling complex multi- Illustrative tool assessment
► Inventory strategy echelon networks (e.g.
Europe)
► Ability to include duty regime
options from EY GTE tool
► Time phasing of transition to
future state network
► Inventory modeling within a
complex network
► However, we will carry out a rapid
tool assessment at the beginning
of Phase 1 to check this is the right
tool for the job
► Future capacity requirements will
Traditional Scope also be key to informing the
Scope for Bacardi Network Design model – we will use our inventory
analytics tools to model optimal
inventory levels
2.2 Phase 2 – Operational design
► Finalise people and organisational change requirements to Level 2 process design/RACI

support the preferred future state network scenario:
► Aligned to preferred network design solution
► Agree both above market and in-market requirements (i.e.

local and central overheads impact)
► Organisational/capability recommendations and level 2
processes design for improvements including: portfolio/
innovation management, planning & forecasting,
manufacturing and Logistics
► Define governance/KPI requirements
Organisational change design
► Carry out gap analysis of systems requirements vs current

capability
► Confirm and agree potential quick wins vs. longer term
implementation opportunities
► Prioritise opportunity areas (effort reward assessment)
► Estimate benefit/cost impacts of operational change

requirements
► Create benefits case for change including phasing and
prioritisation Benefits Case
Outputs
► Finalised benefits case based on agreed preferred scenario

including phasing of benefits release

3.1 Phase 3 – Implementation planning
► Integrate footprint and flow changes with organisational, Project Charter

process and systems requirements/opportunities
► Develop strategic implementation roadmap including:
► Activity plan, timelines and resource requirements
► Inter-dependencies, risks and mitigating actions

Roadmap
► Key milestones and decision points (including go/no-
go decision points)
► Enablers (people, systems and processes)
► Change management requirements and key Detailed Activity plan

activities/communication points
► Create project charters (for both longer term initiatives and
quick wins)
► Create detailed activity plan for implementation Phase 1 – Change Management Framework
including project management, KPIs, governance and change
management requirements
► Finalise phased benefits case and benefits release timing
► Agree initiative owners and prepare for implementation
Phase 1 (including reediness assessment, RACI for
Weekly Deployment Checklists
implementation, change management requirements and
readiness assessment)
Outputs
► Integrated transformation roadmap covering footprint and

operational initiatives
► Engaged and aligned stakeholders with clear ownership
► Detailed activity plan for implementation Phase 1
Revised
High level plan and key milestones
SteerCo
Phase 2: Future State Phase 3: Implementation
Supervisory Phase 1: Future Network Requirements & Baseline Model
Network Design Planning
Milestone Phase 0: Brand and Market Engagement
Board Meeting Feb Mar Apr May June Jul Aug Sept Oct Nov
Board Shareholder
Governance & PMO Supervisory Meeting Meeting
SteerCos
Stakeholder mapping and change plan complete

‘Hothouse’ 1 / ‘Hothouse 2 / Ref Reference group design Reference group
Overall business Kick-off implementation review
Ref. group mtg 1 group mtg 2 review
engagement
0.1 Comms Strategy Implementation
Data
collection
1.1 Market / Industry Analysis
5-10 year Strategy
Plan agreed
1.2 E2E Supply Chain Benchmarking
Baseline Validated
1.3 Trade Flows & Duties Analysis

Agree
Recommendations
1.4 Portfolio Complexity Analysis Initial benefit case
Workstreams completed
Sign-off initial scenarios and
opportunities benefit case
Agree preferred
Scenario
2.1 Network Footprint
Design & Sourcing
Strategy
2.2
Supply Chain
Management Impact
Sign-off detailed Sign-off
design implementation plan
3.1 Implementation
Planning

Part E: Teaming & Fees that show how we
will work together
Considering what is required to be successful, we have defined the
nature of our team and support using four key aspects...
Aspects of our
How will we do this?
approach
► By providing on-the-ground support to work with the Bacardi project leadership team we can accelerate
Use a coaching-led the speed and commitment that your people have to define and execute the plan
approach ► We will use the tools, methodologies and skills that have been successful on other similar projects
► EY’s functional leaders, part of the SMR Collaboration Hub, are already familiar with Bacardi, its priorities
and business issues, and are available in each of the project’s work streams to be called off as required
► We will engage with key Bacardi Subject Matter resources (e.g. from Logistics, Procurement,
Provide access to deep
Manufacturing) throughout the project to align outcomes and recommendations
functional leaders
► We will also utilise EY Subject Matter Resources during the project. These resources will bring their wider
experience enhanced by a deep understanding of cost to serve analytics and it’s use within the Supply
Chain to drive efficiencies
► EY has capability in the relevant functional areas (Network Optimisation, Supply Chain, Tax, Procurement
Use local geographic and Manufacturing in Americas, Asia Pacific and EMEA. In addition our experts across the globe also bring
insight deep alcoholic beverage industry experience
► We will use local experts for local issues in tax, commercial and real estate so that insight and advice is
pertinent to the local area
► We will hold regular Steering Committee meetings in order to drive project progress in line with
Get the plan and
expectations and raise any areas which need guidance from the Bacardi project leadership
programme right from
► We will work collaboratively with Bacardi to successfully deliver the project activities. Aligning EY
the start
Methodologies to Bacardi specific challenges and business requirements

Our core and extended team bring a wealth of spirits, beverages and
New
consumer goods experience from around the world

Core team Extended team
Name Nationality Spirits Beverages Consumer Name Nationality Spirits Beverages Consumer
Goods Goods
Gregg Clark    Brett Cowell   
Andrew Caveney    Nikhil Raghu   
Jolyon Austin    Glen Scott   
Gustav Mauer    William Methenitis   
Elaine Parr    Philippe Peters   
Francesca Gualano   Alla Babiy   
Jocelyn Hallum    Dimitry Yakovlev   
Arjen Odems    Ashish Nanda   
Marius Cosnita    Kimjin Gan   
Jonathan Crowther    Martin Conneally   
Geoff Wass   Jonathan Wright   
Marc Bourde    Michael Lalor   
Extended team Wayne Wiffler  
Name Nationality Spirits Beverages Consumer Hennie Human  

Goods
Folkert Gaarlandt   
Matthew Burton   
Antonio Uras   
Victor Bartels   
Paola Assael
Ben Hampson    Montaldo   
Oliver Hubin    Marcio Silva   
Paul Bakstad    Frank De Meijer   
Craig Mitchell   
Bob Habbijam   
Tanguy Caillet  
Page 78 Confidential Discussion Document

The project starts with market engagement and we propose senior
New
partners to conduct the commercial interviews
Role Location* Name** EY Interviewers

CEO NY / Bermuda Michael J. Dolan Gregg Clark, Jolyon Austin
CFO NY / Bermuda Kevin F. McNamara Gregg Clark, Jolyon Austin
Chief Administrative Officer New York Jacques Tortoroli Gregg Clark, Jolyon Austin
North America Regional President Miami Pete Carr Gregg Clark, Jolyon Austin
Europe Regional President Geneva Stefan Bomhard Elaine Parr, Ben Hampson, Jolyon Austin
Latin America Regional President Panama Paolo Perego Antonio Uras, Marco Silva, Elaine Parr
Asia Pacific Regional President Hong Kong Jon Grey Kimjin Gan, Jonathan Wright, Elaine Parr
Middle East & Africa Regional President Dubai Mahesh Madhavan Gerald Gallagher, Ross Maclean, Elaine Parr
Chief Marketing Officer London Andy Gibson Elaine Parr, Ben Hampson, Jolyon Austin
Global Customer Director London Melissa Frank Elaine Parr, Ben Hampson, Jolyon Austin
Global Innovation Director London Emmanuel Pouey Elaine Parr, Ben Hampson, Jolyon Austin
Rum Global Category Director London Dimitri Ivanov Elaine Parr, Ben Hampson, Jolyon Austin
Vermouth Global Category Director London Arnaud Meysselle Elaine Parr, Ben Hampson, Jolyon Austin
Vodka Global Category Director London Lyle Tick Elaine Parr, Ben Hampson, Jolyon Austin
Malts Global Category Director London Stephen Marshall Elaine Parr, Ben Hampson, Jolyon Austin
Director Customer Marketing Northern Europe Brussels Johan Van Vaerenbergh Olivier Hubin, Elaine Parr, Jolyon Austin
Director Customer Marketing Southern Europe Paris Caroline Doche Olivier Hubin, Elaine Parr, Jolyon Austin
Director Customer Marketing Eastern Europe, CIS, Ivan Butyagin, Philippe Peters, Elaine Parr, Alla
Moscow Anton Shatrov
Russia, Turkey Babiy
Commercial interviews detailed in this chart, additional supply chain interviews across sourcing, manufacturing, planning & logistics will be conducted
* Interviews can be face to face or by telepresence or a mixture
** To be confirmed with Bacardi
New
Overall project governance is critical to aligning the business and we
have aligned our team with Bacardi
Based on our experiences with Bacardi
and with your peers, a well-defined project Forum Bacardi EY Responsibility Authority
governance model will provide: M Dolan Gregg Clark • Unblock major • Final decision on major
K McNamara Andrew obstacles strategic decisions
► Clear direction J Tortoroli Caveney •
Supervisory Provide strategic
Authoritative, definitive decision making Commercial direction
► Board
leadership
► Quick issue resolution (Monthly) Head of HR
JM Lambert
► Timely programme delivery G Ferrero
► Improved quality deliverables that are JM Lambert Jolyon Austin • Set objectives • Scope
more closely aligned to your Steering E Vallado Gustav Mauer • Promote business • Quality
requirements Committee G Ferrero Jocelyn commitment • Timeline
Michael Hinrichs Hallum • Approve scope • Resource/cost
(Monthly)
► Greater stakeholder engagement, buy- Commercial Andrew changes
representation Caveney • Provide
in and commitment
resource/funding
G Ferrero + core Jolyon Austin • Escalate with • Allocate resource/ protect

team leadership Gustav Mauer Reference Group/ critical path
Ways of working with you Elaine Parr •
PMO Steering Committee Manage cross-work
Jocelyn • Progress reports stream interdependencies
► We will have an open and honest (Weekly)
Hallum • Manage milestones • Resolves conflicts,
working relationship where we W/S leads • Oversee between work streams
communicate effectively and solve deliverables sign-off
problems together
Work stream Work stream • Manage day-to-day • Prioritise non critical path
► We will agree and achieve clear Project leadership leadership project delivery activities / without cross-
Work • Execute against work stream dependencies
understanding on our roles and
project plan • Manage resource
responsibilities streams
• Produce • Manage risks and issues
(Daily) deliverables
► We will work together to gain robust
stakeholder commitment and complete Commercial Jolyon Austin • Cross functional • Quality recommendations
deliverables in a timely manner Reference Finance Gustav Mauer scope for Steering Committee
Group Supply Chain Elaine Parr • Ensure expansive ratification
► We will agree deliverables with you Legal Others as thinking
Tax required • Review and approve
during mobilisation, assigning resources (Ad hoc recommendations
on your team for review and sign-off for driven by
specific deliverable components milestone)

Revised
Phase 1: Combined Bacardi and EY Project Team
EY extended team Bacardi Stakeholders/SMRs
 Gregg Clark (Commercial)  Sales and Marketing
 Matthew Burton (EMEIA SC&O)  Finance
 Victor Bartels (EMEIA Tax)  Change
 Andrew Caveney (Global SC&O)  Supply Chain & Manufacturing
 Bob Hampson (Customer)  Procurement
 Olivier Hubin (Commercial  Human Resources
Engagement) Engagement Leadership
 Real Estate
 Paul Bakstad (Procurement)  Bacardi Sponsor  Tax
 Bob Habbijam (Glass sourcing)  Bacardi Engagement Leader
 IT
 Jolyon Austin (EY Eng Partner) EY QA Partner
 Brett Cowell (US Drinks SC&O)  Legal
 Gustav Mauer (EY Eng Marc Bourde
 Nikhil Raghu (US SC&O) Director)  R&D Product Development
 Philippe Peters (CIS, Commercial)  Elaine Parr (Commercial  Brand & Marketing Agencies
 Dimitry Yakovlev (CIS, Strategy) Engagement Lead)
 Ashish Nanda (India SC&O) Bacardi IT
 Kimjin Gan (APAC SC&O) Analyst
 Frank De Meijer (Latam Int.Trade) Project Manager
 Bacardi Project Manager Bacardi
Transactional/
 Jocelyn Hallum (EY)
flow analyst
1.1 1.2 1.3 1.4

Market & Industry Performance Portfolio &
Trade Flows & Duties
Analysis Benchmarking Innovation Analysis
 Bacardi Lead  Bacardi Lead  Bacardi Lead  Bacardi Lead
Bacardi Resource
 Francesca Gualano  Geoff Wass (EY Lead)  Arjen Odems (EY  Marie Schwob (EY Combined Project
(EY Lead) Specialist) Lead) Teams
 Marius Cosnita (EY (Bacardi/EY)
Lead)
EY Resource
Supply Chain business
case Analyst
Market analyst Global Trade analyst Portfolio analyst
Network Modeller
Social Listening analyst

Revised
EY extended team
Bacardi Stakeholders/SMRs
 Gregg Clark (Commercial)
 Sales and Marketing
 Matthew Burton (EMEIA SC&O)
 Finance
 Victor Bartels (EMEIA Tax)
Engagement Leadership  Change
 Andrew Caveney (Global SC&O)
 Supply Chain &
 Bob Hampson (Customer)  Bacardi Sponsor
Manufacturing
 Bacardi Engagement Leader
 Olivier Hubin (Commercial EY QA Partner  Procurement
 Jolyon Austin (EY Eng Partner)
Engagement) Marc Bourde
 Gustav Mauer (EY Eng  Human Resources
 Paul Bakstad (Procurement) Director)  Real Estate
 Bob Habbijam (Glass sourcing)  Elaine Parr (Commercial
Engagement Lead)  Tax
 Brett Cowell (US Drinks SC&O)
 IT
 Nikhil Raghu (US SC&O)
 Legal
 Philippe Peters (CIS, Commercial)
Bacardi IT  R&D Product Development
 Dimitry Yakovlev (CIS, Strategy)
Project Manager Analyst  Brand & Marketing Agencies
 Ashish Nanda (India SC&O)
 Bacardi Project Manager
 Kimjin Gan (APAC SC&O)
 Frank De Meijer (Latam Int.Trade)
 Jocelyn Hallum (EY) Bacardi
Transactional/
flow analyst
2.1 Network Footprint 2.2
Supply Chain Management
Detailed Design &
Impact
Sourcing Strategy
 Bacardi Lead  Bacardi Lead
 Geoffrey Wass (EY Lead)  Jonathan Crowther (EY Lead)
Portfolio & Innovation Lead

Network Modeller, Operations analyst
Network analyst (Manufacturing, Logistics,
Planning)

Revised
EY extended team
Bacardi Stakeholders/SMRs
 Gregg Clark (Commercial)
 Sales and Marketing
 Matthew Burton (EMEIA SC&O)
 Finance
Engagement Leadership  Change
 Andrew Caveney (Global SC&O)
 Supply Chain &
 Bob Hampson (Customer)  Bacardi Sponsor
Manufacturing
 Bacardi Engagement Leader
 Olivier Hubin (Commercial EY QA Partner  Procurement
 Jolyon Austin (EY Eng Partner)
Engagement) Marc Bourde
 Gustav Mauer (EY Eng  Human Resources
 Paul Bakstad (Procurement) Director)  Real Estate
 Bob Habbijam (Glass sourcing)  Elaine Parr (Commercial
Engagement Lead)  Tax
 Brett Cowell (US Drinks SC&O)
 IT
 Nikhil Raghu (US SC&O)
 Legal
 Philippe Peters (CIS, Commercial)
Bacardi IT  R&D Product Development
 Dimitry Yakovlev (CIS, Strategy)
Project Manager Analyst  Brand & Marketing Agencies
 Ashish Nanda (India SC&O)
 Bacardi Project Manager
 Kimjin Gan (APAC SC&O)
 Frank De Meijer (Latam Int.Trade)
 Jocelyn Hallum (EY) Bacardi
Transactional/
flow analyst
3.1 Network Footprint 3.1
Supply Chain Management
Detailed Design &
Impact
Sourcing Strategy
 Bacardi Lead  Bacardi Lead
 Geoffrey Wass (EY Lead)  Jonathan Crowther (EY Lead)
Network Modeller

Revised
Estimated Bacardi Resource Requirements – Phase 1
CORE TEAM SUPERVISORY BOARD
Estimated
Role Profile Activities Who CEO, CFO, CAO, Commercial Lead
Effort
• Overall Sponsor
Jean Marc
Project Sponsor • Steer-Co Meetings 10%
Lambert 2 meetings in Phase 1
• Key decision points Commitment
Approx. 2 hours per meeting
• Direction setting & leadership
Giorgio
Project Leader • Steer-Co Meetings 50%
Ferrero
• Key decision points
Senior Supply
• Day-to-Day Leadership STEERING COMMITTEE
• Participation in working sessions to
Project Manager Chain/ Market 100%
provide oversight and direction
Leader JM Lambert, E Vallado, G Ferrero, M Hinrichs,
• Steer-Co Meetings Who
Commercial Representation
Market & Industry • Insight and direction on Commercial
Analysis and strategy
Senior
Portfolio & • Participation in working sessions as Monthly in Phase 1
Commercial 100% Commitment
Innovation SMR Approx. 2 hours per meeting
Leader*
Analysis • Input and validation of analysis and
Co-Lead recommendations
• Ownership of business case

Business case and
Supply Chain
Finance
• Validation of baseline costs
100% REFERENCE GROUP / EXTENDED TEAM
Finance Co-Lead • Participation in working sessions as
Manager
SMR A selection of Market GMs, Finance, Brand Managers,
Plant Manager, Global Planning Lead, Packaging
• Insight and direction on
Performance Development Lead, Commercial Lead, HR Lead,
manufacturing
Benchmarking Finance Lead
Manufacturing • Participation in working sessions as
and Trade Flows & 100% Representatives from Commercial, Finance,
Manager SMR Who
Duties Innovation, Supply Chain planning, Direct
• Input and validation of analysis and
Co-Lead Procurement, HR, In-direct Tax, Direct Tax, Plant
recommendations
Operations, Logistics Operations, Real-estate, IT,
• Own provision of data as per data Legal
Transactional data Procurement request
100%
and flows analyst Manager • Co-ordination of Bacardi validation
Reference Group kick-off, Reference Group
of data
workshops x 4, Adhoc validation activities
Approx. 2-4 hours per meeting + review time
• Access to IT systems to run queries Commitment
IT analyst IT Resource 50% Max 3 x 4 hour workshops
and reports (to facilitate analysis)
Adhoc validation activities (max 1-3 days total input)
* It is understood that this resource has not yet been allocated by Bacardi
Page 85
►
►
Case Studies
Team CVs
Key relationships and
engagements with Bacardi
APPENDICES
F
New
Case studies
Cases Page
► Global spirits ‘company A’ commercial transformation* 91
► Global spirits ‘company A’ operating model design and planning transformation* 92
► Global spirits ‘company A’ strategic trade flow and supply network design* 93
► Global spirits ‘company A’ ecommerce strategy and B2C contract and tax set up* 94
► Global consumer goods company operating model transformation 95
► Global spirits ‘company B’ US Marketing spend optimisation and channel effectiveness # 96
► Global spirits ‘company B’ supply chain visibility, inventory reduction and network design # 97
*company A engaged EY for multiple major parts of their ongoing transformation programme
#company B have engaged EY for specific projects within their ongoing business transformation (additional examples for
omni-channel strategy and Americas inventory reduction not shown)

New
Global alcoholic beverages ‘company A’ –
Commercial Transformation
Situation:
Programme Vision & Missions
► The client is a leading global alc bev company
with an annual turnover of >£10bn. It was suffering
from increasing gross margin pressure and not Deliver the
delivering against planned growth. VisionMore for More
breakthrough
Global Sales Top 3 CPG
► The Pricing and Efficient Trade Investment (PETI)
Strategy No. 1 on trade
programme was designed to deliver £2bn in
£Xbillion incremental GP by F15
incremental gross profit by 2015. F15 +£50m F11
Mission +£180m in F12
EY Role: Efficient & Greater
Imperatives Price Reduced Effective Shopper
The EY team were brought in to support the client on the for Growth
Growth Arbitrage Trade Investment
Spend
consumer, customer and promotions effectiveness
missions. The team were responsible for: Commercial
Growth :
Policies
ConsumerCustomer• FTZ
► Consumer pricing and promotional optimisation Missions Pricing Pricing • Duty Free Promotion Trade Terms
• Global Min
for the major brands in key markets -US, Spain, Pricing
Australia, Brazil, Russia, South Africa; using EY Enabling The Pricing Organisation
proprietary methodology – generating c.2-5% of Net Missions Data and Market Intelligence
Revenue as Gross Profits
► Trade investment redesign in key markets – UK,
Australia, Brazil, Russia, Thailand, Taiwan to highlight
opportunities to improve Gross Margin, generating c.
1-3% of Net Revenue as Gross Profits
Value delivered
► Global commercial policy implementation for net
price corridors and maintenance of global price ► The global programme ,supported by EY, delivered
minimums ~£250m incremental Gross Profit
► Commercial capability build at market, regional and ► Built up the client’s pricing , promotions and trade terms
global level to enable sustainable realisation of capability with global , regional and local market
benefits resources to embed improvements in business as usual

New
Global spirits ‘company A’ –
Supply Chain Transformation
Situation: Market based Supply Chain model with Global

► The client is a leading global spirits company with an annual direction and standard setting
turnover of >£10bn
► Inconsistent and fragmented supply chain operating model as
a result of strong Regional growth and multiple brand
acquisitions
► Recently adopted a 21 Market global operating model aimed
at empowering GMs with great commercial agility in the
market
► Supply chain operating model grown inconsistently across
Regions leading to cost overheads
► Exec felt that the global supply chain operating model
needed to be reviewed to better align with the global market
operating model, whilst still delivering significant cost savings
EY Role:
► EY selected to run the global SC operating model review
► Review defined supply vision and strategy, designed a
centralised, integrated supply chain organisation including
Value delivered:
processes, organisation, metrics and governance
► EY built a detailed headcount model across all supply chain ► Significantly streamlined operating model
functions and using our organisational benchmarks, identified enabling faster decision making whilst retaining
significant headcount reduction areas. local insight and relevance
► The new integrated supply chain operating model is now in ► Helping company drive additional value to the
the process of being rolled out globally bottom line
► In parallel we are implementing a new centralised end to end
planning structure and capability, to unlock the value of the
integrated supply chain organisation.

New
Global strategic network tax and trade flow assessment
Situation Current Duty Value
Assessment
The client is a Global Spirits Company seeking to identify product trade flow opportunities and Selected Johnnie Walker Red, Vat69, White Horse and Black & White Flows
High level review Not reviewed
redesign the distribution landscape to enhance global savings

EY was engaged to do a product trade assessment for the client’s strategic brands to identify
opportunities for distribution within the network to future proof the business
Total customs duties

EY role: of over £10m
Total customs duties:
of over £1.5m
 Worked closely with the client to gather required data for the total delivered cost analysis –
this included gathering distribution and customs relevant data Total customs duties
of over £12.5m
 Performed local bottling vs bulk analysis to identify optimal trade routes as well as customs
Bulk Shipment and Local
savings due to reduced customs value of products imported as bulk for blended brands
Bottling Analysis
 Examined whether it is possible to carry out any processing activities on key brands at
different locations in order to constitute ‘origin’ status to reduce or eliminate import duties
(Free Trade Agreement)
 Developed customs valuation across key brands to identify optimisation opportunities where
commercially sustainable and consistent with the company’s transfer pricing policy
Value to the client

LATAM
 Potential duty benefit of £5.2m (~£4m net of local bottling) on £12.5m spend due to
Free Trade Zone (FTZ)
differential duty rates of Bulk vs Bottled product
Opportunity Analysis
 ~£500k of FTA opportunities if key product was distilled and shipped within FTA – although
low value currently, this may increase as volumes grow
Asia
 Potential duty benefit of £3.3m (~£1.8m net of local bottling) on £10m spend from effect of
reduced value of product shipped in bulk
 If all trade flows for key product into Asia were from Free Trade countries, projected saving
would be £ 10m (would require filtering, dilution and bottling in an Asian location)

New
Omni channel strategy and B2C contracts and tax set up

Situation:
► The client is a leading global spirits company with an annual turnover of
>£10bn and wanted to launch a new e-commerce B2C channel and at the
same time a new brand premium line of product
► The new business was set-up to operate on the following principles:
• Separate business from brand marketing through fulfilment
• Contracted with global Supply Chain to secure volumes of product
which they held in central regional warehousing
• Used own 3rd party for warehousing and customisation e.g. engraving,
gift boxes etc.
• Used own 3rd party for e-commerce engine and fulfilment
EY Role
► EY was the key advisor for the set-up of the e-commerce model to:
► Ensure compliance with all indirect tax requirements
► Setting up 3rd party contracts
► Establishing multiple providers covered joint testing of the end to
end design of the e-commerce setup
► EY advised on the global trade aspects of the cross border movements to
enable the new trading model to function
Benefits:
► Full B2C e-commerce set up and go-live allowing direct to customer sales
► Direct to customer sales channel giving improved consumer insight
► Enabled quality and compliant delivery of product eg without ending up
being double charged excise duties and avoiding compliance penalties of
up to 100%

New
Case Example – Global Confectionary Company
Redefining future business model for marketing & sales, supply chain and finance
delivering NPV in excess of £150M
• $15bn Global Confectionary company Regional model example

• The client needed to grow their margin to mid teens • Legal ownership of brand
(e.g. Halls, Trident) • Regional business strategy
• Target setting & performance management
• 3 way matching of purchase
orders, GRNs & invoices
level in line with their peer group by 2010

BI • Own overall SC strategy • European management of • Supply chain and • Process Principal marketing
allocations decisions - • Brand strategy, • 1Europe cash flow planning finished goods & raw
• They historically operated with a high degree of

complexity and duplication due to their acquisition

& Chocolate
history and wanted to move to more integrated,

centrally led organisation aligned by product category

• PBS • HR
• S&T • IT

(Toller) (LRD)
• Operated a country supply chain model reporting into a •

Manufacturing:
Convert raw materials •
Manufacturing finance
Process raw materials & •
Planning:
Perform Supply
Order:
• Manage
Commercial:
• Execution of all POB
Commercial finance:
• Demand planning updates
local country manager

• Head of Supply Chain operated a virtual team with

responsibility for driving performance improvement

without direct management control Convert raw materials to finished goods Coordinate planning & order management Local marketing, POB activity & sales
• End to end SC cost visibility difficult with costs

inconsistently allocated across multiple P&Ls
• Limited standardisation of supply chain processes and

metrics. Lack of investment in cross regional operational
excellence programmes.
• The challenge was to understand how best to
restructure and implement the new integrated operating
model to realise the anticipated operational, strategic
and tax benefits

Global Spirits Company B - Marketing Spend Effectiveness and Channel
New
Optimization for US market
U.S. Operating Company of Global Spirits Company (Client)

The Client’s marketing teams lacked ROI and effectiveness
measures on its marketing investments to support
demand. It lacked effective marketing mix modeling
necessary to plan marketing investments and to estimate
their impact on demand. Overview
The Client lacked predictive modeling techniques and had Marketing mix
Data mining and
little insight into projected brand to brand volume Marketing ROI models becomes optimized
analysis on
cannibalization, true or true sales lift. The Client desired marketing activity
produce forecasts to by channel,
to drive more positive impact from each marketing dollar assess financial returns segment, and/or
and to create an approach that would allow them to geography
coordinate channel support spending, direct to consumer TV
spending, and national advertising to maximize Optimized Budget
effectiveness of each marketing dollar spent. Radio
Value Delivered Print Original Budget
EY assisted Client in comparing Client’s advertising and Internet
ROI
promotions practices to leading practices and in
developing A&P ROI measurement, tracking, and On Premise
TIME
management methodology that included performance
Others
metrics tracking and the use of Marketing Mix Modeling
techniques. The EY team assisted in the development of
a A&P measurement scorecard / dashboard and to
define a new spend policy that included decision rules
and governance structures that aligned various spending
approaches. In addition, the EY team helped identify
how to create visibility into customer and brand
profitability as an input into the process to align
budgeting, allocation, and adjustments across all brands
and functions.

Global Spirits ‘Company B’ –
New
Multiple supply chain projects in inventory, cost and network

Inventory reduction
Business Challenge
The client is a Global Spirits Company who are heavily decentralised resulting in limited
visibility of overall supply chain costs, process standardisation and control of inventory.
Business wanted to step change cost visibility and control, followed by developing consistent
processes and approach to tackle inventory, cost to serve and in specific markets review
network design
EY’s role:
 Worked closely with the client engage with end markets and to gather required data to build
a pragmatic cost visibility framework allowing comparison of costs between markets Cost to serve
 Developed overall KPI framework and definitions – resulting visibility identified areas for
PRISMA reporting is fine for consolidation purpose but prevents to build a
standard COST TO SERVE reporting chain …
CURRENT LOGISTICS PRISMA APPROACH Elements currently out of Prisma scope
improvement in demand planning, inventory, cost to serve and network design Brand Company
From Production line
Handling
Handling / Distribution
Market Company Distribution Customer

outcome to FG (1st paying customer)
Full scope
 Developed quick win benefit roadmaps and improved processes through a series of targeted
warehouse shipment
Handling / Distribution
• FG WH Costs Transfer price / COGS
Global BC Costs Global MC Costs
projects : • Inter sites costs hidden cost
Non logistics costs
 Demand planning and inventory reduction diagnostic and tool kit

… while target logistics cost capture will enable to build standard COST TO SERVE
reporting chain …
 Cost to serve pilot and roadmap FUTURE APPROACH added to Finance PRISMA reporting, to remain unchanged
Outbound
 In country network design

Brand Company Inbound Market Company Outbound Customer
From Production line outcome to FG
warehouse shipment
Full scope (1st paying customer)
Outbound
Capture of BC+MC actual costs split into transportation / warehousing / other costs
for a pure logistics « end-to-end » perspective from MC, activity based
In country network design

Value to the client
► Logistics cost visibility provided across all company entities enabling standardisation and
comparison of cost ratios and metrics
► Demand planning and inventory management tool kit developed
► Identified and developed inventory reduction road map to deliver up to 50% inventory
reduction
► Developed cost to serve approach and insights allowing improved alignment between trade
terms and actual behaviours
► In country network design to deliver €mm benefits with 2-3 year payback

New
Case Example – Global Confectionary Company
Redefining future business model for marketing & sales, supply chain and finance
delivering NPV in excess of £150M
• $15bn Global Confectionary company Regional model example

• The client needed to grow their margin to mid teens • Legal ownership of brand
(e.g. Halls, Trident) • Regional business strategy
• Target setting & performance management
• 3 way matching of purchase
orders, GRNs & invoices
level in line with their peer group by 2010

BI • Own overall SC strategy • European management of • Supply chain and • Process Principal marketing
allocations decisions - • Brand strategy, • 1Europe cash flow planning finished goods & raw
• They historically operated with a high degree of

complexity and duplication due to their acquisition

& Chocolate
history and wanted to move to more integrated,

centrally led organisation aligned by product category

• PBS • HR
• S&T • IT

(Toller) (LRD)
• Operated a country supply chain model reporting into a •

Manufacturing:
Convert raw materials •
Manufacturing finance
Process raw materials & •
Planning:
Perform Supply
Order:
• Manage
Commercial:
• Execution of all POB
Commercial finance:
• Demand planning updates
local country manager

• Head of Supply Chain operated a virtual team with

responsibility for driving performance improvement

without direct management control Convert raw materials to finished goods Coordinate planning & order management Local marketing, POB activity & sales
• End to end SC cost visibility difficult with costs

inconsistently allocated across multiple P&Ls
• Limited standardisation of supply chain processes and

metrics. Lack of investment in cross regional operational
excellence programmes.
• The challenge was to understand how best to
restructure and implement the new integrated operating
model to realise the anticipated operational, strategic
and tax benefits

We have assembled an international team including subject matter
New
leads in local markets who will work with Bacardi locally as needed
North America
Europe
 Greg Clark (Commercial) Russia & CIS
 Matthew Burton (EMEIA SC)
 Brett Cowell (SC)  Philippe Peters (Commercial)
 Nikhil Raghu (SC)  Alla Babiy (SC)
 Ben Hampson (Commercial)
 Glen Scott (Glass sourcing)  Yuriy Volkov (Global Trade)
 Oliver Hubin (Commercial)
 William Methenitis (Global Trade)
 Bob Habbijam (Glass sourcing)
 Paul Bakstad (Procurement)
 Craig Mitchell (Procurement)
 Tanguy Caillet (SC)
India and Asia Pac

South America  Jonathan Wright (APAC
Commercial)
 Antonio Uras (Commercial)
 Ashish Nanda (India SC)
 Paola Assael Montaldo (Commercial)
 Kimjin Gan (APAC SC)
 Marcio Silva (SC)
 Martin Conneally (AUS SC)
 Frank De Meijer (Global Trade)
 Sachin Agarwal (Global Trade)
Core team
 Greg Clark (Commercial)
 Andrew Caveney (SC) Africa
 Jolyon Austin (SC)  Michael Lalor (Commercial)
 Gustav Mauer (SC)  Wayne Wiffler (SC)
 Elaine Parr (Commercial)  Hennie Human (SC)
 Francesca Gualano (Commercial)  Folkert Gaarlandt (Global Trade)
 Jocelyn Hallum (SC)
 Arjen Odems (Global Trade)
 Mark Bourde (QC)

New
Core team profiles
Gregg Clark
North America Consumer Products Leader
Supervisory Board and Senior Interviews
Background Professional experience

► Gregg is the Global Advisory Consumer • Gregg Clark is a Principal in the Advisory Services practice of Ernst & Young LLP.
Products Lead Partner
• Gregg is an expert in the strategic, operational and technology issues that CPG and Retail firms
► Gregg joined EY from Accenture and is face. Throughout his consulting career, he has served as client relationship manager, engagement
based in the New York office leader and strategic thought developer for many marquee firms in the Consumer Goods and
► Gregg has a MSc in Electrical Engineering Retail space.
& Management, Purdue University
• He specializes in a number of industry sectors but has spent the majority of his career consulting
for international alcoholic beverage companies and their distributors. He brings deep functional
Skills experience in Strategy, Mergers and Acquisitions, Sales & Marketing, e-Business and Business
Transformation issues unique to the beverage industry. He has worked extensively in helping
► Strategy companies leverage shared services strategies to reduce cost and improve business performance.
► Mergers and Acquisitions
► Sales & Marketing
• Prior to joining Ernst & Young, Mr. Clark was a Partner with Accenture in the Consumer Goods
► e-Business and Business Transformation and Retail practices. Gregg also previously worked for Ernst & Young, Cap Gemini Ernst & Young,
issues unique to the beverage industry
and Weston Group, a leading boutique CPG and Retail Strategy Consulting Firm.
• Prior to his consulting career, Gregg was the director of strategic planning and analysis for Collins
& Aikman, a multi-billion dollar consumer goods, retail, automotive and textile company.
• Gregg is a frequent contributor in the press on the strategic issues facing Consumer Products and
Retail companies. You can follow his thought leadership on Twitter @GreggClarkEY.

Core team profiles
Andrew Caveney
Global Supply Chain & Operations Leader
Supervisory Board and Steering Committee

► Andrew is the Global Advisory SC&O Lead Partner Global Drinks Co. Global Consumer Products Co.
► Andrew joined EY in 2007 and is based in the ► Cost to serve capability pilot and implementation ► Americas’ Supply Chain (SC) operating model
London office transformation. Operational benefits €220m/annum
Global Beer Co.
► Andrew has a MSc in Supply Chain Management Global Confectionery Co
from Cranfield University ► Global logistics cost to serve capability build and roll out
► European operating model transformation including SC.
Global Drinks Co. Operational benefits €30m/annum
► European SC strategy and segmented supply chains
Global Consumer Products Co.
design
► European SC operating model transformation.
Global Drinks Co.
Skills Operational benefits €600m/annum
► Supply Chain strategy ► European logistics cost to serve capability build and roll Global Consumer Products Co.
out
► Supply Chain cost reduction ► APAC full business operating model transformation
Global Beverage Co. including SC. Operational benefits €270m/annum
► Supply chain network optimisation
► UK cost to serve capability implementation Global Tobacco Co.
► Supply Chain global and regional operating model
transformation Global Beer Co. ► Supply performance improvement programme in Africa,
► Global S&OP and inventory management ► Global SC operating model review Middle East Region. Operational benefits £100m/annum
► Manufacturing performance improvement Global Spirits Co. Global Consumer Products Co.
► Procurement transformation and Cost Reduction Global supply chain strategy and operating model review ► Global SC planning transformation. Operational benefits
€400m/annum
► Operational performance Improvement Global Drinks Co.
Global Foods Co.
► Global process, organisation and technology ► Africa supply chain operating model transformation
programme management ► Cost to serve capability implementation
Global Beer Co.
► Tax Effective SC operating models Global Health Care Products Co.
► European S&OP programme
► Global trade optimisation ► Established the European SC organisation including
► Logistics transformation including cost to serve Global Beer Co. network optimisation. Operational benefits £30m/annum
► Multi sector experience Global procurement transformation

Core team profiles
Jolyon Austin
Engagement Partner

► Over 25 years, Jolyon has gained extensive Procter & Gamble For a global spirits, beer and wine company
experience of supply chain design and
► Production manager in a high complexity portfolio ► Identified $150m of savings on $1bn of warehousing,
transformation in the retail, consumer goods and
business; managed 200 employees producing 1,500 SKUs ocean, road, rail and value added services spend
pharma sectors across the end-to-end supply chain
from bulk making through intermediate stage to final annually. Designed and implemented a strategic
► Prior to joining EY, Jolyon was an operations and assembly across 17 process centres. Implemented early sourcing function to deliver these savings
supply chain category planning manager with stage IWS; took process reliability from sub 45% to
Procter & Gamble supply chain and Supply Chain dependably >85% For a UK based global manufacturer –
Lead for a global consultancy ► Led team that designed a new global demand planning
Procter & Gamble
► Jolyon has an MSc in Physics and is a Chartered process and S&OP
► European Initiatives Planner leading cross disciplinary
Fellow of the Institute of Logistics & Transport For a Global Sports Apparel Manufacturer
teams (R&D, tech pack, marketing, sales, finance) to
deliver major product launches through to minor pack ► Programme managed the 2 year design and build of a
changes 40k sq m central distribution centre in Belgium serving
Skills For a Global Manufacturing Company Europe, Middle East and Africa going live on time and
below budget
► Supply Chain Strategy
► Over 3 years led the design and implementation of a
► Network Strategy / Distribution Operations European supply chain transformation; consolidated 22 For the German business of a Global Consumer
► Distribution Centre Design and Build sites into 4; implemented a regional planning capability; Products Company
selected a third party operator; in parallel with regional ► Led assessment and design of cross-business unit
► Manufacturing Operations packing strategy enabled sku reduction by 30%; transport control tower
► Demand and Supply Planning / Inventory delivered 16% cost savings, reduced inventory, improved
Management service levels For a Swiss based pharmaceutical company
► Operational Excellence For a top 4 brewer’s European business ► Led a global distribution strategy assessment and
► Supply Chain Organisation Design business case
► Led a 6 month design phase to create the business
blueprint across sales, planning, logistics, manufacturing, Pharmaceutical / Consumer Health / Animal Health
procurement and finance covering processes to level 5, Company
organisation design, KPIs and reporting
► Facilitated the market assessment and creation of the
For a Leading UK Grocer local distribution strategy in Ireland, leading to the
rationalisation of suppliers and creation of a cross
► Led a distribution operations performance improvement
business unit distribution capability
programme and automated distribution centre design
review across 4 multi-temperature facilities

Core team profiles
Gustav Mauer
Engagement Director

► Fifteen years experience designing and Project Manager, Global Drinks Company Global Cereals & Snacks Company – Redesign of
implementing tax-aligned business models in
► The aim of the project was to implement a new ‘demand
European S&OP
Europe, Asia-Pacific and the Americas
driven’ supply chain vision for the client’s low proof ► Led the support of the redesign of the S&OP process
► Gustav leads teams working across the Consumer business. The first phase of the programme involved the after the purchase of a large new business that required
Products industry, with a focus on Operating model introduction of best practice processes, a Supply Chain full integration with the legacy company
transformation Planning system (based on SAP) and a new Supply Chain
organisation to support Sales & Operations Planning, Global Confectionary Company – European
► Specific focus on tax effective operating model Business Transformation
Demand and Supply Planning. The implementation
feasibility, design
involved the low alcohol content Supply Chain (e.g.
and implementation, focusing on the business ► Gustav started by supporting the client in establishing a
Breezer) through 4 internal manufacturing sites, various
workstreams and as a cross-work stream business case for moving to a centralised tax effective
co-packers and their European markets
integrator/interface between senior tax and Supply Chain model for their European business. He
business stakeholders Global Food Company – European Supply Chain worked closely with senior supply chain leadership to
define this new operating model and to ensure the
► Gustav has lead the implementation of a number of Synchronisation
engagement of the business throughout. The key
major multi-national transformations over recent Led the delivery of the Pilot of a new planning approach
► challenge was also to ensure that an ongoing global SAP
years to optimise the link between demand and production - implementation was able to support the new model
its roots in lean methodology. Project extended to end
to end synchronisation of the supply chain delivering Project Manager, Global Pharmaceutical Company
Skills 30% reduction in inventory and improvements in ► Implemented a Global Supply Chain Planning solution
responsiveness and OEE performance involving Strategic Products and Markets. SAP-APO
► Consumer Products
Global Food Company – European Supply Chain Demand and Supply Planning were the core systems
► Business Transformation components supporting the new planning processes. Led
Transformation & Performance Improvement
► Project & Programme Management the implementation through 3 manufacturing and 8
► Supported the client in establishing a business case for strategic and 50 non-strategic markets
► Change Management
moving to a centralised tax effective Supply Chain model
► Process Improvement for their European business. He worked closely with Project Manager, Global Home Entertainment
senior supply chain leadership to define this new Distribution Company
► Broad Supply Chain Experience
operating model and to ensure the engagement of the ► Having led the supply chain pursuit that secured a £3
► Deep Experience in Supply Chain business throughout. The key challenge was also to million sale, managed the design and delivery of the
► Planning & Execution and Operating Models ensure that an ongoing global SAP implementation was global Integrated Supply Chain Management solution for
able to support the new model the client supported by SAP planning and ERP software.
The project was focused on the non-US Marketing, Sales
and Distribution of Home Entertainment products where
operating companies cover all major consumer markets

Core team profiles
Elaine Parr
Commercial Engagement Lead

► Elaine is the Co-ordinating Partner for EY’s work with A Global Household, Health and Beauty Company - The World’s Largest Total Alcoholic Beverages
Kellogg across EMEIA and the Strategy Leader for Engagement Director Company - Commercial Transformation Lead
the Consumer Products Sector for EY’s Advisory in
► Elaine is the Engagement Director for a programme to ► Elaine led Commercial Transformation projects (incl.
EMEIA
transform the GIA operation to Commercial Change design /implementation of new Trade Terms, ‘Value
► She focuses on building leading client relationships agents. Leakage’ and Pricing studies) across a number of markets.
and bringing our best capabilities to our clients. This led to a multi-year global programme ‘Pricing and
A Global Tobacco Company - Marketing Finance Effective Trade Investment’; she is the Engagement
► Elaine has recently worked with clients in the Engagement Director Director
beverage, health and beauty, tobacco and apparel
sub-segments on a wide range of issues from Risk ► Elaine’s work includes Marketing Effectiveness and A Global Beer Company – Engagement Manager
and Assurance to Customer Terms and Consumer Pricing work
Pricing. ► Elaine led a Sales Strategy project to transform the sales
A Global Food Company - EY Sales Leader operations including initiatives to deliver best return from
► Elaine was previously an Executive Director in Ernst trade investment and build a superior sales community.
& Young’s Business Advisory Services Practice where ► Elaine was the Sales and Trade Funds Subject Matter
she specialised in, & is passionate about, sales & Expert supporting a high profile acquisition. A Global Consumer Products Company –
marketing transformation in Consumer Products The World’s Largest Consumer Products Company Engagement Manager
companies. - Trade Spend Engagement Director ► Elaine led an initiative to improve commercial insight and
► Elaine has a client side & consultancy background. ► Elaine was the Engagement Director for Total Trade
drive better decision-making for Global Brands, Global
She is experienced in building strong client Spend work in market. Sales and the local commercial functions.
relationships; delivering projects from strategy to
implementation; fostering & managing teams; A Global Food Company - Subject Matter Expert The World’s Largest Food Company - Engagement
thought-leadership; & running-the-business. Lead for Global Strategic Generating Demand Unit
► Elaine supported the Commercial Integration of Trading
Terms in the UK ► Elaine delivered a Consumer Relationship Marketing
Skills project to define the vision & approach to identify &
► Consumer Products Sales & Marketing Leadership
A Global Confectionery Company - Customer build relationships with High Value Consumers; and
Investment Lead extended her support to include the Sales & Marketing
► Commercial Strategy Development Unit in general (including Total Trade Spend, Consumer
► Elaine led a Customer Investment project addressing total
► Trade Marketing, Trade Terms & Pricing Strategy Insight and Service).
spend across 22 European countries
► Consumer Pricing A Global Food Company – Business Case Leader
► Business Transformation & Change Leadership ► Elaine shaped each phase of the CRM project and lead
► Sales Operations & Key Account Management the business case construction with the steering group
► Customer Marketing & Category Management

Core team profiles
Jocelyn Hallum
Engagement Manager

► Jocelyn Hallum is a Senior Manager in Supply Chain Global Consumer Products company (Personal Global Cereal Company (Cereal bar factory)
& Operations in Ernst & Young’s Advisory Practice, Care)
► Led the organisation and communication streams of a
specialising in strategy and operations within retail Led a diagnostic exercise for this client analysing
► Lean manufacturing design and implementation for the
and CP companies procurement, logistics spend, portfolio complexity, S&OP same client
► She joined EY in 2011 and is based in the London and inventory optimisation:
► Focus of Org structure, role profiles and meeting
office ► Identifying opportunities for benefits of 10-13% COGs behaviours
► Prior to joining EY, Jocelyn has 7 years consulting reduction, 50% DIO reduction, 8-10% logistics cost
savings and $30m+ working capital reduction ► Worked closely with both management and operators to
experience, specialising in end-to-end supply chain
improve performance measures. Delivering over 90 days
operational performance improvement, cost to Global Consumer Products company (food) additional production capacity
serve analysis and Lean tools & techniques ► Led a project for this CP company covering 3 streams:
► Jocelyn has a BSc (Hons) in Mathematics and EMEIA Soft Drinks Company
► Logistics
spend diagnostic to identify cost savings
Statistics from The University of Kent worth $20m on a base spend of $190m ► Led the Logistics content stream for this client focusing
on redesigning logistics operations and organisation
Skills ► Supply Chain synchronisation – designing and running
a pilot on their largest production line, identifying ► Designing a regional organisational structure to support
► Operational performance improvement (analysis, opportunities for 35% inventory reduction in FG a network with increased cross border flows
diagnostic & implementation) inventory through production stabilisation and S&OP
process/settings review ► Identified cost savings of >10% through operational
► Cost to serve modeling
efficiency and improved capacity utilisation
► Operating model design to support delivery of the
► Strategic network design
identified savings Global Spirits Company
► Supply Chain Synchronisation
Global drinks supplier ► Led delivery of a cost to serve solution, focusing on
► Inventory Optimisation
► Led a cost to serve program to deliver a cost to serve optimising network flows and enabling increased
► Lean manufacturing, warehousing & logistics customer collaboration through transparency of cost
analysis tool to this client
(diagnostic & implementation)
► Working across European OpCos to ensure delivery of ► Benefits identified of 10% Logistics budget
► TESCM
a tool which would be relevant to multiple markets Global Tobacco Company
(from both a network and business need perspective)
► Content lead for logistics in a project focusing on
►I also supported and coached the client in identifying footprint optimisation and operational efficiency
opportunities and to carry out analysis to enable following the merging of 2 regional operations
proactive cost saving discussions with customers
► Identified 27% Logistics Spend savings
► This methodology is now embedded in 8 European
markets with plans to roll-out Globally in 2015 ► Changes are now being implemented
delivering benefits of up to 15% cost saving per market

Core team profiles
Francesca Gualano
Market & Industry Analysis Lead

► Francesca is Senior Manager within the Performance
Luxury Goods International Company: omni- Consumer Goods Company: international
Improvement Service Line (Advisory Services) –
Customer sub service line channel operating model and strategic Expansion Department Operating Model and
roadmap design Strategy Review
► Over 10 years of management consulting experience
in private sector branded companies, spanning from ► Program Manager for Digital and e-Business operating ► Project Responsible for International Expansion
Consumer & Luxury Goods model and strategic roadmap definition support Department Operating Model and Strategy Review,
involving major brands market profiling / attractiveness analysis, market
► Relevant advisory experience on customer and prioritization, business case development, operating
market strategy, corporate strategy, business Global Consumer brand - European Network model design
planning, retail performance improvement, Strategy Development
ebusiness Consumer Goods Company: Digital and Multi-
► European megatrends and strategic market analysis, channel strategy analysis and challenge
► Education/Background: 5 yrs degree in Engineering, dealer network strategy and 5-yrs plan definition support
specialized in Management & Finance, from ► Digital and Multi-channel strategy analysis and challenge,
Politecnico di Milano Global Consumer brand – Retail Performance organizational model guidelines development, operating
Improvement model strategic options analysis and evolutionary
► Languages: Italian (Native), English (fluent)
► Global Coordinator for Retail Performance Improvement roadmap definition
Program across Europe, Asia, South America and
Skills Australia
Industrial company – Corporate Strategy
► Consumer and Market Strategy ► Project Responsible for Corporate Strategy and growth
Commercial Due Diligence Luxury sector plan definition
► Omni-channel Consumer Experience
► Project Responsible for Commercial Due Diligence for Consumer Goods Company – Consumer, Sales &
► Channel Strategy – Commerce Transformation Luxury sector company acquisition – strategic market Marketing Analytics program
► Business Planning / Modeling analysis, value drivers, strategic options for growth
analysis ► Consumer, Sales & Marketing analytics design and
► Operating Model Design and Review implementation support
► Digital Transformation Global Consumer brand– Multi-Country CRM
Model Development: Luxury Goods International Company– Multi-
► Program Management Country Sales Target process & Retail
► CRM global template definition, process design support
Budgeting Model review
and Program Management activities for multi-country
CRM Program roll-out (Europe and South America) ► Multi-Country Sales Target process & Retail Budgeting
Model Review, business needs analysis, Retail “To-Be”
budgeting model pilot

Core team profiles
Geoffrey Wass
E2E SC Performance Benchmarking Lead

► Geoffrey joined the Performance Improvement Global FMCG Company – Inventory Consumer Electronics - Logistics Contracting
Advisory Practise at EY in 2010
► Led the development of a global inventory reduction ► Supported the detailed re-design of a European returns
► Prior to joining EY, Geoffrey worked in the aerospace approach, targeting working capital savings of £100m network for a Global Electronic Entertainment company,
research sector as an engineer including the consolidation of logistics third party
► Defined a market engagement approach and created a
providers
► He holds an MEng in Aeronautical Engineering from set of tailored safety stock calculations and analysis,
Imperial College London supported by a global BI system ► Supported the RFP process for the European reverse
logistics contract and performed cost analysis of vendor
Global FMCG Company – Network Design
Skills solutions
► Used CAST modelling software to redesign the Created the Statement of Work for the contract including
► Logistics ►
continental Europe supply chain for both Primary and in- rates, performance reporting requirements and
► Procurement market distribution governance
► Inventory ► Performed data collection, analysis and benchmarking of Media and Entertainment – Operational Efficiency
► Cost to Serve analysis warehousing and distribution operations across over 50
markets ► Identified potential savings of over £500m for a leading
► Supply chain network modeling UK media and entertainment company
► Identified savings of 25% through network changes and
► Supply chain operating model
logistics efficiency initiatives ► Savings identified across several key departments,
► Supply chain performance analysis including: Supply Chain, Field Force, Customer Services
International FMCG Company – Operating Model and Procurement
► Highly proficient using all Microsoft Office tools
including Microsoft Project ► Conducted a feasibility study to assess the benefit of ► Performed deep dives into several Procurement
moving to a co-located global procurement hub categories and identified opportunities to reduce value
► Designed a future state operating model including leakage through improved demand management and
changes to process, organisation structure and compliance
governance, plus a detailed location assessment
Global Telco – Procurement Strategy
► Identified operational and tax benefits of c$300m pa
► Developed a Procurement Strategy for a global Telco
International Medical Company – Network Design with over £8bn of spend
► Used CAST modelling software to redesign a global ► Created a category strategy model to drive changes to
supply chain network to meet growth targets the Procurement ways of working across global, regional
and local organisations
► Shared network design and CAST knowledge with
the client through training sessions

Core team profiles
Arjen Odems
Gobal Trade Excellence Director

► Arjen is the UK practice leader for the Global Trade ► Arjen advises clients on a wide range of customs, excise ► Provide customs, excise and indirect tax advise
team and has over 15 years of experience on and international trade topics covering import, export, supporting operational modal re-design and market
customs, international trade and excise topics customs and excise procedures. His experience includes strategy and market entry strategy for a Global spirits
traditional topics such as customs valuation, customs & company. This included looking at the customs, excise
► Arjen has a Master degree in tax law with
excise tariff classification and origin as well as processes and indirect tax consequences of changes in the existing
specialization in direct tax as well as indirect tax,
reviews and optimization. operational model throughout South America, Asia ,
customs and excise.
► Working closely together with other teams (e.g. supply Europe and Africa as well as identifying market potential
chain, transfer pricing , international tax ,etc.), Arjen has resulting from trade agreements changes in the trade
assisted various companies to assess their supply chain agreements across the world and in particular for Asia
and trade model with the aim to be customs, excise and and Africa.
international trade compliant and to facilitate the most ► Advising a global spirits company to understand the
beneficial customs, excise and international trade European excise and excise compliance position and
position. implement a compliant and efficient structure. The main
► Arjen’s business sector experience focusses on consumer challenges focussed on differences in interpretation of
goods, in particular alcohol and tobacco companies but harmonised excise provisions between the various
countries as well as managing freight forwarders to
Skills also covers a variety of industries, including semi-
conductor, high tech, energy and utilities, ensure compliance and provide transparency on excise
► Customs duties compliance an liability.
pharmaceuticals, automotive and telecommunications.
► Excise duties Provide generic and bespoke customs and excise training
► Within the Global Strategic International Trade Team , ►
► Customs and excise duties supply chain Arjen has a specific focus on global projects and to various alcohol beverages and spirits companies
optimization assisting companies with cross border queries, emerging involved in production, storage and distribution of
► Data analytics for customs and excise duties markets projects and international trade model design. spirits.
optimization

Core team profiles
Marius Cosnita
Trade Flows & Duties Lead
Background Professional experience Skills

► Marius is based in the UK and is a Manager with the ► Assessment of the customs and excise duty function ► Customs duties
Global Trade Team with over 5 years of experience efficiency ► Excise duties
in the field of customs and international trade and Implementation of customs and excise duty optimization
excise duties. He has a Degree in Economics from
► ► Supply chain customs and duties optimization
solutions as part of supply chain reorganization projects
Bucharest Academy of Economics and is a certified ► Data analytics for customs and excise duties
tax advisor with the Romanian Chamber of Fiscal ► Implementation of economic customs regime, such as optimization
Consultants. Processing under customs control, Inward processing, etc.
► Marius is specialised in customs and excise duties. ► Participate at DG TAXUD studies on different customs
He has been working constantly for clients in a wide topics (e.g. customs risk analysis or undervaluation of the
array of industries, out of which the most goods entered into the EU).
representative ones are Alcohol and Tobacco ► Assist clients from different industries during customs
products, Automotive, Oil & Gas, Pharmaceuticals, and excise duty audits performed by tax authorities
Industrial Products, Telecommunications & IT, Retail
and Consumer. ► Implementation of Authorised Economic Operator (AEO)
status. For instance, assess companies readiness for
► Marius advises clients on a wide range of customs applying and obtain the AEO status
and international trade topics covering import
operations, economic customs regimes and ► Obtain Binding Tariff Information (BTI) for different
compliance. products (e.g. smart phones or set top boxes)
► His experience includes topics such as customs ► Assist clients from different industries for obtaining excise
valuation, tariff classification and origin as well as duties authorizations, such as tax warehouse, authorised
customs process reviews and optimization, including consignor and authorised consignee
international trade procedures and processes. ► Advice clients regarding customs and excise duties
► Marius’ experience also covers customs issues such compliance requirements
as audits, assistance during customs inspections and
tax challenges.

Core team profiles
Marie Schwob
Portfolio and Innovation Analysis Lead

► Marie is a manager in EY’s Customer Advisory Global High Tech Manufacturer – Margin ► Designed an approach to promotion evaluation and a
practice, specialising in commercial strategy and Improvement standard promotion evaluation toolset (ROI based
operational performance improvement, for global assessment, promotional market libraries) with sufficient
Consumer Products and High Tech clients ► Led the creation of a new methodology for setting flexibility to support local requirements (specifically
consumer prices strategies for new products, across emerging markets) to support sales planning
► Marie joined EY in 2008 and is based in the London retail, distributor and operator led markets, aligned with
office a new pricing structure ► Embedded the new ways of working worldwide (over 15
face to face training sessions with Sales & Marketing
► Marie holds a Master in Management (Strategy & ► Led joint client & EY teams to implement the new functions) to support the development of a global
Marketing - 2008) from HEC Paris and a Bachelor of methodology worldwide, alongside enhanced promotion capability and central promotional insights
Commerce in Management and Information Systems governance and processes, new toolset and new global
(2005) from McGill University. She speaks French insight platform to support decision making UK&I Oil and Gas – Consumer Pricing Review
(mother tongue), English (fluent) and Spanish (basic
► Worked directly with client senior management to review ► Led the review of a UK&I Oil and Gas organisation to
knowledge)
project findings and obtain sign off for implementation develop new pricing policies, process and discount
Skills UK Beverage Company – Pricing & Commercial
structure for their residential domestic kerosene market .
The proposed pricing structure was viewed as defensible,
► Commercial Strategy Improvement fair and transparent for their consumers while at the
► Margin Optimisation same time ensuring that profit margins were maximized
► Managed Customer and Product value leakage analysis
► Consumer Pricing Optimization with the creation of a fully allocated profitability Major UK Utility Company – Field Sales
waterfall. Worked directly with client leadership to create Effectiveness
► Promotion Effectiveness
the case for change to a more ‘value-based‘ organisation
► Marketing Analytics ► Optimised sales force territory design and reviewed the
► Led the identification, and implementation, of pricing field sales force performances to improve the
► Trade Terms and commercial improvements, including; system geographical match of field resources to market
► Salesforce Effectiveness profit/margin, SKU and tail customer rationalisation/ opportunity, and identify territories to allocate to a third
optimisation, Joint Business Planning, price floor and party. Helped identify £10.8m Opex saving
► Channel Management corridors setting, promotion optimisation, P&L
► Analytics and Financial Modelling restructuration, and brand divestment Global Consumer Electronics Manufacturer –
► Enterprise Cost Reduction Pricing & Commercial Improvement
Global Consumer Goods Company – Promotion
Effectiveness ► Optimised sales force territory design and reviewed the
field sales force performances to improve the
► Led the review of major promotional activities across geographical
multiple channels in Europe, Africa, Asia and GTME to
enable £27m of promotion investment improvement

Core team profiles
Jonathan Crowther
Supply Chain Management Impact Lead

► Jonathan is a Manager in the UK& I Advisory Global FMCG Company – Integrated Supply Chain Global Power and Utility – Logistics Transformation
practice, focusing on Supply Chain Transformation Operating Model Strategy and Design
► Solution design and implementation workstream lead
► Jonathan joined Ernst & Young in 2011 and is based ► Logistics Workstream lead in complex Strategy phase ► Project managed the go-live of the new contract,
in the London office reviewing the As-Is and designing the To-Be, identifying including the management of client and 3rd party teams
► Jonathan has a BSc in Economics from Southampton 10-15% cost-savings opportunities
► Supported the design of the retained organisation and
University ► Logistics Workstream lead in Detailed design phase future operating model
► Jonathan has 6 years Logistics industry experience ► Led workstream to design future integrated Logistics ► Supported solution development and commercial
working within the Retail and Consumer products operating model and organisation to deliver identified evaluation of the RFP submissions
companies for a leading Logistics Provider benefits identified in the strategy
► Developed the Transition plan and Mobilisation
► Designed Roles, Processes, RACIs and the supporting Demobilisation approach for the 3PL
Governance structures to support the integration of 26
individual Market approaches Developed internal stakeholder material to ensure
Skills
►
alignment and buy in from the wider business
Government– Inventory Management
► Excellent presentation and communication skills Global FMCG Company – Logistics Strategic Review
Transformation
► Seasoned Logistics strategy and planning skills
► Workstream lead in the Inventory Management Team ► Workstream lead in the pan-European Logistics spend
► Logistics Operating model design and focused on Land activity review
implementation experience
► Developed data-led, standardised approach to manage ► Led detailed analytics of Logistics carrier spend
► Project management, and new start-up experience
the disposal of excess/obsolete inventory ► Identified future savings opportunities across the
► Strong leadership skills European network through collaboration and
► Delivered inventory reduction of £20m through
► Logistics strategy and management significant and complex process design and stakeholder rationalisation
► Project and Change Management engagement ► Developed Stakeholder engagement approaches with the
► Container Logistics Management Global Pharmaceutical– Logistics Contract Review senior client team to design a roadmap for delivery
► Continuous Improvement ► Completed a review of the global logistics freight ► Provided SME input to operating model strategy and
forwarding contracts and identified revenue leakages design
► Supply Chain Management
related to their application
► Paris and AS400 competency, alongside PARAGON
experience ► In addition, the team designed process controls and tools
to provide robust end to end controls across their global
logistics and freight forwarding

Core team profiles
Marc Bourde
QA Partner

► Marc is a Partner in the EMEIA Business Utilities: Front-office Transformation Pharmaceuticals: Supply Chain Strategy
Transformation Leadership team and the UK IT
► Marc shaped and led the Business readiness and & ► Marc helped this client redesign it’s supply chain
Advisory Lead for Products & Services. Marc has
engagement workstream of this large business strategic planning process (2-5 years horizon) to reduce
extensive experience in Business Transformation and
transformation costs.
Global Complex Programme (SAP, Digital & other
business applications/technologies). Rail: Omni-channel Digital Transformation Industrial Products : Supply Chain Transformation
► Marc has over 20 years consulting and has served in ► Marc supported the digital transformation of this Rail & New Operating Model
a variety of roles during numerous SAP / Digital operator with focus on e-Commerce, M-Commerce and ► Marc designed the new operating model and led the
programs in industries such as Media, Technology, the call centre supply chain & operations business transformation. He
Life Sciences, Consumer Products & Services, developed a business case and a roadmap for the private
Industrial Product & Services, Oil & Gas and Utilities. Oil & Gas: IT & Business Blueprint for 2 Greenfield equity owner and prepared the employee consultation
These roles include: sites
Consumer Products: Business Transformation
 Advisor to Chairman, Board or Executive ► Marc led the Operating Model, Process and IT-
Committee enablement strategy and Blueprint phases for new ► Marc helped this client redesign the supply chain
production sites in Russia and China processes and IT, and adopt global Sales & Operations
 Independent advisor
Planning. This resulted in less 3rd-party manufacturing.
 Client-side advisor
Paper & Carton : European Business ROI was 18 months
Transformation
 Program & Integration lead Consumer Products: ERP strategy & ERP/SI
► Marc helped this client standardise European operations, selection
 Engagement partner creating Finance & Procurement shared services,
 Quality assurance partner adopting common organisation, processes and SAP. ROI ► Marc led the ERP strategy for a global fast-growing
was 29 months. cosmetics company to support operations, retail, sales,
 Marc has also 4 years operational supply chain and finance. This was combined with a
experience in supply chain and in the office Pharmaceuticals: Global Business Transformation Corporate Tax and Operations Performance review.
of the CIO.
Skills ► Marc helped this client redesign it’s supply chain
organisation, processes and IT solution following a
Pharmaceutical: Global Business Transformation
► Business (Operating Model) & Enterprise Architecture merger. Operating Model shifted from a country-based ► Marc led the Global Procurement strategy, the SAP
► Large-scale global process, organization and to a product-category and SAP APO was implemented. strategy and Pilot implementation. ROI was 16 months
technology program management and Change Inventory was reduced by 40%, operating costs by 17%
Management
Paper & Corrugated: IT strategy & ERP/SI selection
Consumer Products – Global business
► IT/SAP/Digital-enabled Business Transformation ► Marc led the IT strategy for a pan-European Paper &
Transformation
Corrugated company (all business, all functions)
► Supply Chain Finance Strategy & Transformation
► Marc provided client side advise to this global £1.2b SAP
► Business Value Realisation and Cost Reduction and Target Operating Model programme

Extended team profiles
Matthew Burton
EMEIA Network and Trade

► Matthew is a Partner in Ernst & Young’s EMEIA Global Consumer Products company Private equity backed engineering company
supply chain transformation practice. Matthew has ► Led EMEA wide strategic manufacturing and logistics ► Led rapid inventory optimisation diagnostic and
over 20 years supply chain experience in industry network design developing a business case for plant and improvement project. Covered sales and operations
and consulting primarily across retail and consumer DC rationalisation including complex line moves and planning, inventory policies, safety stock calculation and
goods. Matthew specialises in delivering major difficult historic site closures. Project identified over batch size / inventory trade offs to realise 15% inventory
transformation programmes and leads the EMEIA SC £40m per annum savings reduction
network modelling team
Global Consumer Products Company UK International Electrical Retailer
► Matthew has a MA in Natural Sciences from ► Developed 10 yr Africa market supply strategy to take ► Led the design of a £15m supply chain change
Cambridge University and is a member of the advantage of the evolving trade blocks and developing programme. This included new end to end planning and
Institute of Chartered Accountants in England and consumer spend. Identified over £15-30m savings forecasting, promotional planning and inventory
Wales opportunities optimisation processes. Benefits included over £50m
Leading Russian retailer inventory reduction
Developed 5 year logistics network strategy and road ► Negotiating £10m from suppliers in benefit sharing as a
Skills ►
map to enable this business to rollout omni-channel result of logistics network transformation and move from
fulfilment and maintain its 20% pa compound annual 17 stocked local DCs to centralised and cross dock model
► Supply chain transformation
growth rate
► Global Trade Optimization and network design
Global Medical Devices Company
► S&OP and CPFR
► Lead the redesign this companies EMEA and Latin
► Lean supply chain America supply network to underpin their 2020 growth
► Inventory reduction and optimization ambitions to double business volume cost effectively
► Demand & Supply Planning Global Pharma Company
► Tax effective business operating models ► Developed logistics transformation road map for the
global pharma major including assessing value leakage in
► Large scale programme and change management current logistics contracts
► Performance Improvement Iberian International food and non-food multi-
► Organisational design and development format retailer
► Led strategic design of international distribution network
to identify sustainable logistics and customs duty cost
savings of over €30m

Viktor Bartels
EMEIA Tax
Background Professional experience Skills

► Victor is a Dutch international tax partner in the For a US Industrial Products Company ► International Tax
Ernst & Young Amsterdam office. ► Transfer Pricing
► Victor lead a pan-European project through phases from
► He has been one of the founders of E&Y’s global Tax initial concept through to transition to a new European ► Large Scale Programme Management
Effective Supply Chain (TESCM) practice and is the operating model. The project included development of a
► Organizational design
leader of E&Y’s TESCM Network in Europe delivering central operating model/ transactional model,
integrated TESCM services to clients on a pan development of a new transfer pricing system, design of ► Supply Chain
European basis. detailed conversion strategies, redesign of the companies ► Multi sector experience
SAP platform and development of detailed legal
► Victor has over 10 years experience in supporting
agreements and other relevant documentation. Benefits
clients in designing and implementing TESCM
included significant simplification & optimization of the
models in Europe across a variety of industries.
business and large improvement of EPS
► Victor spent 4 years with E&Y in the US, which has
► Victor acted as the European TESCM work stream lead for
contributed him with a unique experience in serving
a project for a large US chemical company to align its
US multinationals with their European tax planning
transactional model and related transfer pricing system
to the company’s operating model which over the years
had already moved from a local to a centrally driven
organization. E&Y’s support included detailed conversion
analysis, obtaining the necessary tax rulings in certain
key risk countries, process & transactional design,
development of a new TP model, detailed VAT flow
mapping and detailed implementation support.
For a large consumer electronics company
► Victor lead the design of a new tax-legal model to be
aligned with a revised European operating model. The re-
design triggered an unprecedented business growth and
revival and resulted in significant cost savings by
creating one way of working and financial savings by
reducing transactional complexity

New
Core team profiles
Ben Hampson
Strategy and Commercial
Background Professional spirits experience

Ben has recently joined Parthenon in London, having Commercial strategy projects (3 years)
spent the last seven years at a leading Global Spirits
company and three years as a consultant with Deloitte. ► Designed commercial strategy for $1bn Global spirits company Asian business, working directly with
Ben has extensive commercial and strategic experience International and Asian Presidents and delivering output to Global Exec
of consumer goods, having worked across Europe, Asia ► Led strategic analysis which led to acquisition of United Spirits Limited in India
and Africa in both the food and drinks sectors. Most
recently he was General Manager at a Global Spirits ► Led acquisition screening for vodka brands in Russia
Company subsidiary in the Indian Ocean, prior to which ► Facilitated strategic and competitive planning in all markets across Western and Eastern Europe
he had roles in their strategy and M&A teams. At
Deloitte, he led and took part in around twenty ► Designed European Global spirits company vodka strategy
commercial due diligence projects. ► Changed route to market for spirits in Russia
Ben graduated from Oxford University with an MA in ► Designed local vodka strategy in Russia
French and Russian.
► Designed and implemented change in spirits route to market in Ethiopia
► Acquisition screening of African spirits producers
►
Skills Commercial/operational experience (4 years)
► Consumer and Market Strategy ► Managed relationships with East African distributors (2 years)
► Omni-channel Consumer Experience ► Managed €20m revenue Global spirits company subsidiary, with sales/commercial team of 25 people (2
► Channel Strategy – Commerce Transformation years)
► Pricing and Trade strategy
► Operations

Olivier Hubin
Commercial Engagement

► Olivier comes with 22 years experience as Senior Organization Re-design of P&G Global Internal Acquisitions Integration ($ 400MM)
Finance Leader at P&G. He has successfully Audit (150 people)
► Led successful integration of Gillette France into P&G,
completed assignments as Regional and Country
► Identified the need and led P&G Internal Audit re- including organization design, employee selection, sales
CFO, Corporate Finance Executive and Audit
invention program resulting in a higher quality force optimization, integrated operating system
Committee member.
streamlined assurance program, an integrated approach development, compensation and benefits alignment and
► He has a strong track record of delivering superior to corporate risk management and the creation of system harmonization. Opened a new head office,
value creation through identifying winning Internal Consulting aimed at providing optimal process, successfully retained top talents and delivered a +21%
opportunities, designing and implementing controls, risk management and governance solutions. sales productivity improvement Also led integration of
balanced growth and productivity strategies, This program delivered a -20% net reduction in Wella and various acquired brands
optimizing processes and leading change. headcount coupled with significant effort reduction in the
Sustainable Business Turn-around of P&G West
► Beyond Financial Management his areas of expertise business
Europe Home Care ($1.2Bn)
include Pricing, Risk, Cost of Controls Optimization, Process Transformation and Productivity ($31Bn.
e-Commerce, Marketing ROI, and Acquisition ► As CFO led design and implementation of breakthrough
spend pool)
Integrations. strategic plans delivering record Value Creation (sales
► Acted as lead Consultant on global E2E re-design +50%, profit +230%, operating cash flow +250% in 4yr),
Skills program for P&G marketing and trade funds including fixing the fundamentals
management, aimed at step-changing sales, productivity (stewardship/reporting/planning), step-changing Pricing
► Finance Management Strategy, driving winning Portfolio Choices, designing
and governance via stronger decision making / planning
► Commercial Strategy Formulation & Execution processes, improved organization design, and sustainable Innovation Models, and implementing holistic
streamlined budgets Productivity programs
► Governance, Assurance & Controls, including Cost of
Controls Optimization Restructuring of P&G France ($1.7Bn) Organization Capability Creation
► Risk Management ► As CFO, partnered with General Manager and other ► Led various functional capability programs including skill
► Business and Cultural Transformation functions to return P&G France to sustainable growth renewal for P&G Finance and turning around Benelux
after 10 years of stability (sales +2%, profit +6% on (140 heads) and France (60 heads) Finance organizations.
► Acquisition Integration
average in declining markets) through major E2E Led development and implementation of capabilities
► Organization and Talent Management redesign, later re-applied globally, of the organizational required to run a centralized EMEA Laundry business,
► Trade Marketing, Trade Terms & Pricing Strategy structure, process, enabling tools and culture, and those included strategic planning, forecasting, target
reinvention of the go-to-market strategy, which setting, business monitoring, portfolio management and
► Consumer Pricing succeeded in moving retail customer base from sourcing capabilities.
transactional relationships to collaborative joint value
creation

New
Bob Habbijam
Glass sourcing and Product Innovation

► Over 25 years supply chain experience with FTSE 100 Global Spirits Compay For a UK based soft drinks manufacture
FMCG companies, working in operations
► Supply Chain Design Director, Responsibilities included ► Audited a supply chain network in the UK, recommended
management and project delivery
Global Supply Chain Design which included Raw material to the board changes, gained approval to proceed,
► Prior to becoming a consultant, Bob was Supply supply through to retailer. Supply Chain Design tendered new solution to 8 international 3PL transport
Chain Design Director for a leading Global Spirits supported the procurement of Raw Materials including providers, reviewed bid documents, drafted contracts and
Company and has worked for Owens-Illinois as a glass by providing heuristic strategic supply chain appointed new contractor. Savings have exceed £450 K
project manager based in the UK technical centre. modelling support per annum
► Bob has a BA in Applied Technology EMI Music For a UK based high Street Retailer
► Distribution Development Director, responsibilities ► Audited and redesigned UK footprint to enable the next
included the development of country distribution 5 years expected growth to be accommodated
solutions from the initial assessment of requirements to For a UK based global manufacturer
implementation throughout Europe, South East Asia and
Skills the Americas. Provided corporate guidance to country ► Used Transportation Guru to develop a final mile delivery
based managers, and managed the logistics corporate model in South Korea. Results showed a potential saving
► Supply Chain Network Design
planning cycle. of 25% of vehicles and associated costs p.a. Continuing
► Procurement to support the development of a 3rd party solution with
Owens-Illinois (United Glass) the local project team. Results will be implemented 2014-
► Transport Optimisation
► Project Manager, responsible for the design, tender and 15.
► Project Management
implementation of the raw material handling equipment For a global records retention company
► Distribution Centre Design and processes for a group of UK based manufacturing
► Inventory Optimisation plants. ► Enabled the UK team to identify and deliver 10%
transport savings on a £4.5m budget
For a Global Spirits Company
For a UK based global FMCG company
► Re-designed an Australian delivery model, My
responsibilities included; the preparation of tender ► Constructed three global models reflecting the raw
documentation, drafting of contracts, analysing the bids, materials inbound logistics . Calculated savings in excess
appointing the new contractor and delivering the of 25% of total costs through purchasing and transport
solution. savings
For a UK based global FMCG company

► Used Transportation Guru to develop a final mile delivery
model in South Korea. Results showed a potential saving
of 25% of vehicles and associated costs p.a. Continuing
to support the development of a 3rd party solution with
the local project team.
Paul Bakstad
Sourcing & Procurement

► Paul is a Partner in Advisory and leads the UK Global Beverage Company Sourcing /Outsourcing
Commercial & Procurement Team
► Paul held overall responsibility working with this client to ► Paul was the solution architect for a number Procurement
► Paul specialises in structuring and leading large, delivery a global procurement transformation and Finance outsourced projects and bids. He was
complex procurement and outsourcing projects incorporating strategic and operational procurement and responsible for defining the operating model and service
a buy/sell model across 5 continents delivery approach, technology solutions, costing/price
► Paul’s experience also includes sell-side experience
and commercial negotiations including:
architecting, selling and delivering outsourcing and Global Brewing Company
managed service solutions across multiple industries ► Global Investment & Retail Banking Group – 4 continents,
► Paul was responsible for the definition of a procurement
Strategic Procurement, Transactional Procurement and
► Paul has a degree in Law from Liverpool University operating model, and organisation design for this brewer Accounts Payable
Global Security Provider ► European Automotive Manufacturer - European solution
for €1.4bn of indirect and MRO spend. Services including
► Paul was the overall lead in a global review of the
covering Category Management, Transaction
procurement arrangements to identify demand
Skills standardisation and sourcing benefits and deliver
Procurement and Accounts Payable
► Outsourcing & Sourcing Advisory this through procurement transformation ► Global Software & IT Company – Global solution for
Transaction Procurement and Full Service Finance Back
► Procurement operating models UK Central Government department Office
► Strategic sourcing and large scale complex
► Paul was the lead commercial advisor in the UK Utility
procurement
renegotiation of one of the UK’s largest (~£600m p.a.) IT
► Contract negotiation and complex renegotiations Application and Infrastructure contracts. Paul managed ► External SME to this organisation’s Smart Metering
the commercial strategy, financial analysis, business project including the best practice procurement of
► Programme Management Meters, IT Systems and Field Force arrangements
modelling, commercial negotiations, technical
► Procurement Transformation opportunity definition and contractual drafting. The Global Soft FM Provider
resulting agreement reduced annual costs by £110m.pa.
► Paul was the overall lead to this client for this
Global Financial Services Company programme transforming their product ingredients list
► Paul was the overall lead in a global review of and revising their product sourcing arrangements to
procurement to identify benefits and the most effective deliver 10% overall savings
delivery model (internal, outsource, hybrid) and then Global Services Company
deliver the subsequent transformation
► Paul was the overall engagement lead to this client for
this programme transforming their ingredients range and
revising their product sourcing arrangements to deliver
10% overall savings.

Brett Cowell
US Drinks, Supply Chain & Operations

► Brett is a Senior Manager in Ernst & Young’s Bacardi Global Global Consumer Products Company
Advisory Practice, specialising in Commercial and
► Performed a follow-up review of Shared Services (BBS) ► Performed a review of North American go-to-market
Operations Strategy with Global Products clients
performance and improvement actions structure and operations from a cost reduction and future
► He has 16 years consulting experience working investment perspective including zero based budgeting,
► Performed a review of Global Procurement in Geneva, UK
across: Spirits & Brewing, other Beverages, Tobacco, segmentation and operating model design
and US, covering end-to-end accountabilities, structure,
Food, Household & Personal Care, Retail and
technology, sourcing process and initiatives and category Global Consumer Products Company
Technology clients in Mature (US, Europe, Australia)
management. Developed recommendations in IA
and Emerging Markets (Africa, Eastern Europe / CIS, ► Performed a strategic review of route to market for direct
Advisory report
Asia) retail / c-store channels to identify opportunities in cost
► Brett works with global clients to drive value Global Beverage Company (Americas) to serve and inventory management
through Regional and Global Operations ► Performed an capability assessment and inventory Global Consumer Products Organization
Transformation optimization review for USA, Brazil, Chile, Canada,
Mexico, Columbia, Argentina, Peru, Uruguay, Dominican ► Managed regional commercial and supply chain
► Brett joined Ernst & Young in 2007 and is based in transformation and efficiency programme across 50+
the Dallas office, having worked with EY previously Republic and Duty Free business. Covered process,
structure, KPI’s, strategy, technology & data – across countries
in London (UK) and Sydney (Australia)
inventory, demand planning, route to market, ► Implementation of new operating model across
► Brett has an MBA (Exec) from the Australian promotions and innovation Marketing, Supply Chain and Finance using SAP APO and
Graduate School of Management R/3. Drove service and inventory improvements
Global Beverage Company (Europe)
Skills ► Supported a strategic review of Western and Central
Global Consumer Products Company (Food and
European operations with a view to driving operational Household)
► Business Transformation in Beverages and Consumer
Products and cost efficiencies ► Led Asia-Pacific, procurement operating model and
► Operating Model design and implementation Global Beverage Company (Africa) sourcing review and design of new regional Target
Operating Model (TOM)
► Rapid cost / working capital reduction ► Performed a strategic review of supply chain structure
and performance across Africa Operations. ► Reviewed regional marketing sourcing structure inc A&P /
► Route to market optimisation, end-to-end supply POS spend to identify improvement opportunities
chain, cost-to-serve, and commercial to operations Recommended new operating model and roadmap of
interface improvement initiatives Global Metals and Manufacturing x 2
► Emerging markets strategy execution ► Mobilized route to market and vendor managed ► End-to-end operational review and value stream analysis
inventory project in East Africa covering Sales & Marketing, Pricing, Service & Inventory
► New Product Introduction and Innovation processes
Global Beverage Company (Europe) management, Promotions and Operations (Asia Pacific)
► International Project Management
► Designed new European S&OP process ► Commercial & Supply chain target operating model
design (Central Europe/CIS)

Nikhil Raghu
US Supply Chain & Operations

► Nikhil Raghu is a Manager in the Advisory Services ► Supported the deployment of operational excellence blitz ► Established and maintained an effective PMO function as
practice of EY, with over 7 years of industry and in leading CPG manufacturing facility in the US; driving the PMO Lead for a $85m (150+ FTE at peak) supply
consulting experience in engineering, supply chain data analytics to identify prioritized losses / waste, and chain transformation program through Mobilization and
and manufacturing related fields. implementation and coaching of Operational Excellence Design phases; responsible for defining the charter and
methodologies and tools. Engagement delivered a 9 pt program execution plan, establishing management
► Nikhil has a Master in Engineering (Mechanical) from decrease in unplanned downtime and 88% improvement systems and performance monitoring across the
the University of Auckland, New Zealand in MTBF. program, and working with the management team to
► .Nikhil also brings strong modelling capability and resolve issues; program implemented successfully and
► Supported the development of a major ($2.7bn revenue)
experience from three years as an aerospace over-delivered on business case
Asia-Pacific FMCG player’s E2E operating model
engineer, and a Master’s degree in Mechanical (including process design utilizing lean principles, org ► Developed forecasting models and evaluated the supply
Engineering. design and transformation planning) across network chain related to $30bn+ post-earthquake rebuild in New
design, planning, manufacturing, distribution, Zealand; forecasted significant supply chain bottlenecks
engineering, reliability and procurement to improve and developed mitigation strategies for risks to delivery
effectiveness and efficiency. objectives
Skills
► Operating model development included ► Led the analytics for the optimization of over $3.4bn in
► Nikhil specializes in deploying hands-on
organization, processes and technology down finished goods inventory for a global food company;
improvement projects in manufacturing plants
to plant level for rationalized future state supported identification of c.$300m in working capital
with leading practice operational excellence
network. Developed a “modular site” org reduction globally
methodologies and tools.
design that could be adapted and scaled
► Has broad, end-to-end exposure and across footprint of ~30-40 sites.
understanding of global value chains, and has
► Led operational reviews of plant operations for global
supported significant end-to-end supply chain
beverage company for their plants and co-packers in
transformation programs.
Puerto Rico and China
► Brought on as manufacturing / supply chain
subject matter resource.
► Nikhil recently led the plant operations review for
Bacardi internal audit engagements in Puerto
Rico and in China (BSL). He worked on site with
local management teams to identify risks and
issues across procurements, planning, production,
inventory and logistics

New
Philippe Peters
Russia Strategy
Russia Interviews

► Philippe is a Partner in EY Advisory, leader of the Post-Merger Integration (PMI) and Carve-Out’s ► Payment systems (growth strategy)
Strategy & Transformation practice for CIS, based in ► Global pharma (Russia & CIS) ► Steel & Mining (growth strategy, CIS)
Moscow. Global agro (Russia)
► ► Oil & Gas (people strategy, Russia)
► He has 25 years experience in general management ► Global foods & beverages (Russia)
► Global auto tyres (channel and online strategy, Russia)
and senior advisory roles in Russia & CIS, Western
► Global office products (Europe) ► Railways (international rail and mining strategy, CIS)
Europe, US, China & Asia
► Global branded tableware ► Real Estate & Hospitality (growth strategy, Russia)
► Prior consulting experience with BCG and Bain in
Paris, London, Moscow ► Leading French telco (Europe) ► Telco’s, Banks (growth strategies, Europe, CIS)
► Philippe holds a MSc. degree in electrical ► Listed Mining company (CIS) ► Multiple Strategic Due Diligences for Private Equity
engineering and MBA from Essec, Paris ► Global Oilfield and IT services funds, across industries
► Global payment systems (Japan)

Prior to consulting, Philippe has 10 years industry
experience:
Skills ► Global bank (Russia)
► General Manager Asia-Pac Business Unit for technical
► Global bank (Italy)
► Philippe is an experienced practitioner in Strategy textiles (Hong Kong, Shanghai)
and Business Transformation Business Transformation
► Country Manager South Korea for producer of industrial
► Strategy: Corporate Strategy, Growth Strategy, Sales ► Global agro (sales & marketing, Russia) ink-jet printers (Seoul, Tokyo, S’pore)
& Marketing Strategy, Innovation Strategy ► Global pharma (lean organization, Europe) ► Sales & Strategy internship roles in IT, Defense, Media
► Transformation: Post-Merger Integration, Carve- ► Telco (Operations Excellence, CIS)
Out’s, Organizational Transformation, enterprise-
► Mining (organization, operations, CIS)
wide Transformation
► Steel and Mining (CIS)
► Philippe has experience across industry sectors:
► Several banks (global and Russia)
► Mining & Metals, Oil & Gas, Transportation,
Automotive
Strategy
► Light industry (country & business strategy, Russia)
► Telco, Financial Services, Consumer Products, Retail,
Life Sciences ► Global Pharma (portfolio strategy, Russia)

New
Dmitry Yakovlev
Russia Strategy

► Dmitry specializes in strategy and operational Post-Merger Integration (PMI) and Carve-Out’s ► Development of go-to-market strategy in Russia for an
improvement projects in healthcare area ► Post-Merger Integration of business unit into leading international medical equipment manufacturer
► Previous relevant functions: New product global pharma company ► Analysis of Russian diabetes drugs market and
development and commercialization in leading development of portfolio diversification strategy through
international medical devices company, partnership for leading European original drugs
Business Transformation
International business development in leading manufacturer
► Strategy development and PMO organization for
Russian medtech company ► Strategic due diligence of major Russian private
upstream division of leading Russian oil and gas
► MBA, INSEAD, France / Singapore healthcare provider for APAX Partners
producer, including assessment of business model
► Doctor of Medicine, Russian State Medical options for JVs with international oil services companies
University, Russia for challenged reserves development
Strategy
► Innovation strategy development and implementation
Skills for leading multinational drinks company in Russia and
► Dmitry has extensive Strategy and Business Eastern Europe
Transformation experience ► Business model review for portfolio company of leading
► Strategy: Business Model redesign, Business unit Russian media holding
strategy, growth strategy, commercial due diligence, ► Evaluation of JV opportunity for leading multinational
localization strategy medical devices manufacturer in Russia
► Transformation: Project Management Office, Post- ► Business model innovation project for global pharma
Merger Integration company
► Development and implementation planning of Go-To-
► Dmitry has experience across industry sectors: Market strategy for global packaged goods producer in
Russia
► Consumer Products, Retail, Life Sciences, Telecom
and Media, Oil & Gas

Ashish Nanda
India Supply Chain Design

► Focusing on Industrial and consumer products ► Business Transformation for a leading consumer ► Assisted a leading MNC brewer in fine-tuning its India
sector products company in India – across Growth strategy, strategy
M&A advisory, S&D and Supply Chain
► Joined Ernst & Young in 2007and is based in the
Mumbai office ► Helped a leading FMCG manufacturer in Post Merger
► Sales & Distribution and Supply Chain Transformation at Integration with a OTC-focused FMCG player
► Ashish has close to 18 years of management
a INR 10 billion FMCG player
consulting experience across industries with a
primary focus on Consumer Products. ► Diversification strategy for a global food major in India
► Sales & Distribution & Supply Chain Transformation at a
► Prior to joining Ernst & Young, he worked with a
INR 6 billion foods player
large Consulting firm on a number of assignments ► Diversification strategy for a large semi durables major
including strategy development, supply chain
transformation, cost reduction, operational efficiency ► Supply Chain Transformation for a large tyre
► Supply Chain capability assessment for a global foods
etc. across India, China, Middle East, South manufacturer
major in India
► Post merger integration work for INR 10 billion FMCG

► Business Strategy for a leading consumer products
player.
company in china
Skills
► Business Transformation ► Business strategy for INR 50 billion Industry
► Supply Chain Transformation
► Customer Management ► Enterprise wide cost reduction project in an INR 50
► Performance Improvement billion semi durables major in India.
► Strategic cost management

► Business Strategy ► Supply chain and S&D transformation at a leading
Indian FMCG player
► Merger Integration
► Market Analysis

New
Jonathan Wright
APAC Advisory Centre Lead
Hong Kong Interviews

► He spent the first 15years of his career based in ► Advisor to WEF on Asia Logistics, Supply Chain ands
Europe and is now focused on clients in Asia Pacific. Sustainability strategies
He has been based in Singapore since March 2009. ► APAC wide performance improvement and cost
► Jonathan is recognized globally for his work in the reduction program for a global Spirits business
area of Supply Chain and has been supporting the ► Global multi year business transformation covering
World Economic Forum for several years in Supply Ordering management, Inventory, Fulfilment and
Chain related topics and sits on their Global Agenda Procurement.
Council for Trade and Investment. ► China: Global Supply Chain strategy and operating
► Jonathan joined EY in 2014 after 17 years with model review. Including capability gap analysis and
Accenture and 5 years with Exxon Mobil. transformation roadmap.
► Whilst in Asia, he has worked with clients such as ► Korean - Supply Chain IT Master Plan and deployment of
Diageo , DFS, DHL, Unilever, Samsung, LG, Huawei, Channel strategy and visibility capability across ASEAN
NBN Co Australia, Philips Healthcare and a number ► Multiple Retailers: Wine & Spirit retailer and major
of the large regional Telcos. Supermarket chain - Supply Chain transformation

Kimjin Gan
APAC Supply Chain & Operations
Hong Kong Interviews

► Kimjin is a Partner based in the Singapore office of Goodman Fielder Fonterra
Ernst & Young’s Advisory Services and is the Asia
► Drove the implementation of a growth initiative to ► Defined and scoped workstreams, deliverables and
Pacific Advisory Leader for OME (Operating Model
capture share in the hot bread shop segment of the project governance structure
Effectiveness)
Australian bakery market
► Assessed industry leading practices for multi channel
► He has 20 years international experience in
► Built new BAKERS OVEN retail concept, implemented a (phone, face to face and online) order fulfilment
leadership roles across Management Consulting and
new retail and supply chain business model and launched
Industry ► Assessed opportunities to establish an online customer
a new portfolio of products in 12 months
interaction channel
► Prior to Ernst & Young, Kimjin led Accenture’s
► Secured Metcash as a foundation partner and
Marketing and Customer Strategy domain for the ► Designed SAP enabled to-be processes across contract
collaborated with IGA retailers to roll out BAKERS OVEN
Products Client Group. He also held industry roles as setup, order capture, process shipment, process delivery,
concept stores
Head of Strategy and General Manager Frozen customer service, and managing complaints
Bakery at Goodman Fielder – Australasia’s largest ► Led cross functional team across marketing, sales,
food company logistics, manufacturing, finance, legal and external Sony
research and design agencies Assessed alternative direct sales channels including
Skills ►
online, B2B, Loyalty Partners
► Implemented SAP to enable supplier management,
► He has an exceptional track record partnering with order/demand management, warehousing and financials ► Assessed opportunities to improve performance of
Executive Management to deliver growth and existing traditional bricks and mortar retail partner
operational productivity improvements in Kellogg
channel
challenging environments and industry segments ► Asia Pacific Program Management Office for Project K – a
► Assessed category channel trends to determine ability to
► He also has commercial industry experience global transformation program comprising changes to
deliver growth ambitions
building, launching and running a business supply chain network, and reduction of management
► He is an expert in strategy development and overheads. ► Assessed Selling and General Administration cost
implementation, process design and technology ► Established project management governance structure, structure to redeploy savings and funds from demand
enablement for customer and consumer sales & charters, workplans, benefits tracking, status reporting, fulfilment to demand creation
marketing and supply chain distribution. He is an risks and issues management for Asia Pacific Leadership
► Developed recommendations across building consumer
expert in Consumer Products industry segment team
awareness, channel strategy and operating cost structure
► Managed change program for project team spread across
► Industry expertise: Consumer Products, Industrial Australia, India, Thailand, South Africa, Malaysia and
Products, Retail, Consumer Electronics, Automotive, Singapore
Insurance, Telecommunications ► Functional deep dives into R&D and procurement ways of
working, manufacturing processes and reducing
management overheads

Frank de Meijer
LATAM International Trade

► Frank has been working as a Global Trade and International Brewery - Brazilian Logistic Footprint Portuguese Olive Oil Company – Importation and
Indirect Tax specialist for 16 years in the Latin
► Worked together with EY’s Advisory Supply Chain
Distribution Footprint project
American Region, and is located in São Paulo.
colleagues to optimise the inbound material and ► Performed a study on improving the existing importation
► He was responsible for the creation of the Global outbound sales flows and performed production capacity and distribution network.
Trade Group in Brazil and the South American analysis for Brazil and the Region.
Subarea. ► Combination of Supply Chain and Tax study resulted in
► The projected resulted in need for setting up a new change of port of importation and opening of two new
► Worked for various clients in the beverage industry Brazilian production entity (Brewery) in the Central distribution centres.
including: Inbev, Heineken, SabMiller, Global Spirits Region of Brazil, the expansion of an existing Brewery in
Leader, Grandmarnier and Pernod Ricard as well the South of Brazil and the set up of a few new China Tire Company – Location Study Project
various other consumer product clients distribution centres. ► Performed a Location Study for the future production of
tires in the Brazilian Market. In this project we compared
Skills ► Currently supporting this company with the cost/tax
efficient planning on the machinery and equipment to be different states and municipalities with variables as
► Global Trade, focussed on Europe and Latam market acquired. Labour Costs, Inbound and Outbound Logistic Costs,
Land Costs and Tax Incentives availability.
► Indirect Taxes (VAT and Excises) in Latam Association of Beer Breweries CervBrasil - Inbound
► Brazilian Tax Incentives and outbound tax studies ► The result of the project demonstrated the possible set
up of a plan in the South-East region of Brazil.
► Location Studies for start ups and companies with ► Worked on a projects with respect to the possible
growing business increase of local Excise taxes. US Pharmaceutical Company – Production Capacity
► Supply Chain Studies
Study based on Free Trade Agreements
► Worked on a project for the possible decrease of the
► Footprint studies, both Regional as pure local import duties for raw materials, to be used in the ► Performed a Production Capacity Study whether the
Brazilian production process. client asked to compare the possible future concentration
of the production in one single plant, either located in
French Spirit Company – Market Entry Study Mexico or Brazil. In that study we had to consider the use
► Performed study on the possible future local production of Free Trade Agreements in the production destination
versus the current import operations. countries.
► The result of the project demonstrated the preference for
► Compare the tax costs of local acquisitions and
keeping the Brazilian plant open and transfer the
production versus current import transactions.
production from Mexico to Brazil.

New
Armando F. Beteta
Mexico & LATAM Global Trade Leader

► Armando F. Beteta is an Executive Director of ► Armando F. Beteta is an Executive Director of Ernst & Spirits
Ernst & Young LLP’s Global Trade practice. He also Young LLP’s Global Trade practice. He also leads the ► Provided overall review and coordination for a global
leads the customs and international trade practice in customs and international trade practice in the Latin spirits company related to indirect tax considerations
the Latin American Business Center. Based in Dallas, American Business Center. Based in Dallas, he advises and implications in several Latin American countries.
he advises multinational corporations with business multinational corporations with business interests in
interests in Mexico and Latin America. Mexico and Latin America.
► Provided customs valuation guidance to Global spirits
company, which included research of legislation and
► Prior to joining Ernst & Young LLP, Armando was ► Prior to joining Ernst & Young LLP, Armando was legal precedents regarding the application of customs
Mexico’s former representative at the North Mexico’s former representative at the North American valuation methodologies and post entry adjustments to
American Free Trade Agreement (NAFTA) Center, a Free Trade Agreement (NAFTA) Center, a tri-national customs value in Latin America.
tri-national office in charge of providing exporters, office in charge of providing exporters, importers and
importers and producers from North America with producers from North America with technical
information regarding customs procedures under NAFTA. ► Assisted a global spirits company with the analysis of
technical information regarding customs procedures
He was appointed to the NAFTA Center by the Ministry transshipment rules under several Mexican Free Trade
under NAFTA. He was appointed to the NAFTA
of Finance and Public Credit of Mexico (Tax Agreements. Such analysis included the preparation of
Center by the Ministry of Finance and Public Credit
Administration Service) in March 1995. advance rulings to consider transshipment through
of Mexico (Tax Administration Service) in March
Panama for subsequent importation into Mexico.
1995.
► During his 10-year career in the public sector, he served
► During his 10-year career in the public sector, he as the Chief of Staff for the Federal Fiscal Attorney of
served as the Chief of Staff for the Federal Fiscal Mexico, Deputy Director of Legislative Affairs on Indirect
Attorney of Mexico, Deputy Director of Legislative Taxes. He has also served as Legal Advisor to the
Affairs on Indirect Taxes. He has also served as Legal Technical Secretariat of the Economic Cabinet in the
Advisor to the Technical Secretariat of the Economic Presidency of Mexico.
Cabinet in the Presidency of Mexico.

New
Tanguy Caillet
Supply Chain & Operations

► Tanguy holds an executive MBA (HEC Paris) and ► Support a Big 5 retailer in its definition of Integrated ► Responsible at a Ciba Specialty Chemical, a global
Industrial Engineering Master degree. Planning processes, systems and governance model company, of a Forecast accuracy improvement program
Responsible at a global FMCG company to review the achieving +40% forecast accuracy improvement after
► Certified APICS CPIM and Lean Six Sigma Green Belt ►
S&OP and planning processes for all countries and Demand planning processes and system support (APO
► Within EY, Tanguy is part the Performance
categories and propose a new way of working both on DP) was reengineered. Implemented a new Safety stock
Improvement advisory team focusing on Supply
S&OP and Operational planning processes creating the policy and revision process leading to 25% inventory
Chain Management and the S&OP/IBP global expert
future SC Roadmap reduction at Regional DC level.
team
► Responsible at a global FMCG company to implement a ► Responsible at Danone Austria of the improvement of
► Fluent in French, English and German
new IBP process across all European countries, supported their Demand Forecasting and VMI Planning processes
by new SAP S&OP tool. with key retailers. After an audit of their processes and IT
systems, improvements were recommended leading to
► Responsible at a global Tire company of the creation of a
5% forecast accuracy improvements and 10% wastage
new SCM & IT Roadmap on the basis of a complete SC
reduction
Audit covering all SC processes and IT systems. Identified
all Supply Chain drivers supporting the company vision. ► Responsible of a redesign of the Supply Chain of Robert
Detailed all key projects to improve the SC over a 5-year Wiseman Dairies, from Strategy, Organization, Processes
Skills roadmap (S&OP and Operational Planning) and IT systems. Lean
Principles where introduced in an innovative Lean SC
► Supply Chain optimization along the entire value ► Responsible at Global Semi-conductor company of a
concept. Expected benefits £10Mio.
chain from strategy to design and implementation major Supply Chain Transformation program over 3
of global transformation programs years to redesign their entire Supply Chain strategy, ► At a global Chemical reseller, major provider of Carbon
organization, processes and improvement of SAP APO by Black, Tanguy lead a major inventory reduction program
► Design and implementation of leading S&OP, IBP
adding a new decoupling point in the supply chain, an that provided a 10Mio€ working capital improvement,
and integrated planning concepts in a Regional and
S&OP decision process and Production Execution with more than doubling inventory turns (4 to 9) in a
Global context
Lean Principles (CONWIP). sustainable way. Named 2nd best SCM project in
► Project and program management for different Germany at “Best of Consulting 2010” by
international clients ► Responsible at Tyco Electronics Automotive division of
WirschaftsWoche
the redesign of their EMEIA S&OP process alongside
► Solution architect in SAP SCM & JDA
their Demand and Supply planning processes and
► Internal content leader for Lean SCM systems.

New
Craig Mitchell
Procurement

► Craig is a Partner in our EMEIA Operating Model ► Program leader (EY): Leading a global procurement ► Chief Financial Officer, Procurement (SABMiller): Led the
Effectiveness practice with responsibility for Africa operating model transformation for a multi-billion dollar feasibility study and jointly led the detailed design and
and a strong focus on procurement operating consumer products company operating in more than 100 implementation of the global procurement operating
model transformation. countries across six continents, including Africa, model, including the global organization structure,
engaging with senior management on a day-to-day basis procurement processes, risk management framework,
► He is a member of the South African Institute of
Strategic advisor (EY): Providing strategic advice, input, financial accounting and control, governance model,
Chartered Accountants. He has 19 years’ experience ►
direction and guidance to the senior management at a commodity and currency risk management, benefit
in major transformation program leadership,
$10 billion high-technology group in the process of tracking and performance management approaches,
operating model transformation, and capability
going through a global procurement operating model reporting to the Management Board
building, gained whilst working in South Africa, the
United Kingdom, and Switzerland. transformation
► He has delivered successful transformational ► Program leader (EY): Jointly led the detailed design phase
program and capability building results across for a major supply chain operating model transformation
procurement, supply chain, finance and taxation program at a $25billion industrial products group with
functions, primarily whilst working in senior operations in Europe, Asia and North America, and
leadership roles in the consumer products, supporting the Management Board in a steering capacity
marketing and media industries. ► Value Realization Director (SABMiller): Designed and
implemented the value realization methodology and
Skills governance model for the multi-project business
capability program, implemented across five continents
► Major procurement and supply chain transformation
including Africa, that delivered $496m operating cost
program leadership, integration and
benefits per annum, reporting to the Management Board
implementation
► Operating model design, including governance
models, organization design, and KPIs
► Financial management, performance management,
and value realization
► Supply chain and procurement
► Stakeholder and change management

New
Antonio Uras
Supply Chain & Operations, LATAM

► B. Sc. in Mechanical-Aeronautical Engineering from ► Delivered several projects (organization, process and
ITA – Aeronautical Institute of Technology; budget redesign, market entry/acquisition, among
others) for the largest Latin American Brewery in Brazil,
► MBA from INSEAD (Institut Européen
Argentina and Uruguay
d'Administration des Affaires or European Institute
of Business Administration) ► Conducted an extensive benchmarking study, covering
Marketing, Sales, Distribution, as well as Back-office
functions for 10+ of the largest CP (especially Food and
Beverages) companies operating in Brazil
► Led a commercial and marketing synergy study for 3,
previously disintegrated, divisions of a Multinational CP
company
► Built pricing strategies for two different companies
operating in the Animal Nutrition business, as well as for
one Biotechnology company. Two of those projects
involved both segmentation and go-to-market
► Managed several projects (ranging from Strategic
Planning to Shared Services Center implementation) for
one of the World Largest Food companies
► Supported several local and foreign companies to
understand, in Brazil and in the rest of South America,
customers/clients, channels, competitors etc and to
develop specific strategies to enter or to grow
► Prior to EY, was CFO of Teleperfomance, Senior Manager
at Gradus, Associate at Lehman Brothers and Consultant
at McKinsey

New
Kamal Sundar
Sourcing & Supply Chain

► Kamal Sundar is a senior manager in Ernst & ► Over 15 years of supply chain experience. Works with ► Led a production line center-lining effort that directly
Young’s Advisory Services practice with over 15 clients on various aspects of supply chain like strategy, contributed to improving the Overall Equipment
years of supply chain experience procurement, planning and IT enablers. Effectiveness (OEE) of the production plant
► He assists organizations develop operations
► Led a manufacturing strategy and manufacturing ► Advised senior leaders on creating an operating model
strategy, identifying supply chain pain points,
implementing improvement initiatives that focus on transformation roadmap effort that identified over for an integrated repair enterprise for manufacture,
process re-engineering, organizational alignment $300MM is savings and developed a multi-year initiative repair and overhaul (MRO) that facilitates efficient use of
and technology enablement. roadmap to strengthen supply chain competitiveness capacities and increases inventory visibility
► Kamal holds a bachelors degree in Mechanical ► Led an operating model design project to restructure an ► Led an operations transformation program and enabled
engg., masters in Industrial engg. from Texas A&M
European business unit into a tax effective supply chain 19 production facilities improve inventory management
Univ. and executive education in supply chain from
MIT model providing operational and tax benefits and production scheduling
► Led a strategy assessment effort focused on direct ► Led a process reengineering effort around raw material
materials that provided actionable recommendations on and finished goods inventory flow through production,
Skills current state, future state definition, and a roadmap of warehouse and the distribution centers. The process
improvement initiatives redesign and the supporting analyses led to cycle time
Led a manufacturing strategy development project to reductions, inventory re-posturing and operational cost
► Supply Chain strategy ►
effectively enable make/buy decisions by building a savings

► Supply Chain cost reduction
supply chain cost model to assess differentiated supply ► Led a supply chain transformation initiative that
► Global S&OP and inventory management
chain cost paths streamlined the master planning process across global
► Manufacturing performance improvement plant locations leading to better capacity utilization and
► Led a supplier collaboration initiative focused on
► Procurement transformation and Cost Reduction reducing raw material inventory levels by developing and reduced inventory levels
► Operational performance Improvement deploying a supplier managed inventory framework ► Led multiple Overall Equipment Effectiveness (OEE), cycle
► Tax Effective SC operating models ► Led a procurement transformation program aimed at time reduction, and inventory management improvement
globalizing 3 high spend categories – Technology, Travel programs that led to approx. 10% OEE improvements
► Logistics transformation including cost to serve
and Real Estate – to increase operational efficiency and and about 30% cycle time reduction
► Multi sector experience
reduce costs ► Led a supplier enablement strategy designed to facilitate
forecast and inventory collaboration. The successful
launch of the portal facilitated collaboration between the
top 5 electronics industry suppliers and their clients
New
Glenn Scott
Sourcing & Supply Chain

► Over a 20-year career, Glenn has gained extensive ► 12 years of experience assisting business leaders in ► Advised manufacturing teams (management and
experience in Operations Management, Initiative business process improvement for multiple sites at the technicians) on Manufacturing Operational Excellence
Management, Material Supply Management, and world’s largest consumer goods company strategy and methods, including autonomous
Supply Network Design, Qualification, and ► 8 years of experience advising managers and functional maintenance, focused improvement, total quality
Implementation leaders on competencies and behaviors necessary for management (TQM), and health, safety, and environment
business success. (HS&E). Assisted in establishment and support of
► Prior to joining EY, Glenn was a Manufacturing and
Leadership Systems. This included aligning both key site
Supply Chain manager at P&G and DuPont ► Advised internal and external customers on best
leaders and key influences.
► Glenn’s focus across multiple CPG sectors has been solutions to customer experience issues and marketplace
concerns through leadership of education and training ► As part of change management, assisted in development
upon sustained capability in technical, operational,
programs for 400-person customer service operations of Training needs analysis and assessment and People
and organizational skills using P&G’s IWS
center responsible for $25 billion in orders annually Transition plan.
methodologies (EY is a P&G-licensed partner)
Assisted 400-person site in key metrics of Customer ► Assisted in all aspects of Leadership Capability
► Glenn holds a Master’s in Business Administration ►
Service Improvement to prevent outsourcing and gain development, including assessment of business needs,
and a Bachelors in Chemical Engineering
status as best-value site establishing core competencies or adding to existing
Skills ► Assisted in Program Planning for manufacturing
competency matrix, and aligning on a glidepath for role-
► Upstream Initiative material and supplier based learning systems. Advised leaders at all levels as a
initiatives for leading national coffee brand
sourcing Coach.
► Advised category leadership on Supply Chain Risk
► Supplier Quality Assurance and Management ► Assisted in training for high-performing work systems
Management and Controls for personal care brands,
and advised leaders on how to create this environment.
► Global Supply Design and Qualification including risk assessment for major vendors for business
continuity planning ► Advised business leaders on succession planning for
► Material Supply Management
both key roles and continuity roles.
► Business Continuity Planning ► Assisted in Supplier Collaboration and Measurement for
large paper goods company, including contracts terms, ► Assisted HR systems teams on best value for learning
► Operational Excellence
scorecards, and service level agreements management systems and strategy for performance
► Leadership and Organizational Development management systems.
► Assisted in Customer Collaboration efforts for new
► Initiative management for a Seamless Technical Assisted key training as master facilitator for global Train
business development, including supply chain capability ►
Community (R&D, Engineering, Manufacturing) the Trainer sessions and Training Strategy and Plan
and alternate supply routes for global subsidiaries
► Change Management Development.

New
Marcio Silva
Supply Chain & Operations LATAM

► Executive Director of Advisory Services practice of ► Strong experience in implementing management models
Ernst & Young in Sao Paulo for Performance to the area of operations, through Deployment Strategy
Improvement - Value Chain - Brazil, with over 16 (operations), tactical planning (S&OP) planning and
years of professional experience, with the last 14 implementation, management models for indicators,
years in consulting, focused on transformation segmentation, data quality, inventory policy, with focus
projects in Value Chain Management (Business & on translation between business and technology solution
Technology), as a consultant, technical coordinator associated;
and project manager acting strongly in the
"translation" between Information Technology and ► Participated and led transformation projects in Value
Business Chain Management in Brazil and other countries (Italy
► Mechanical Engineer and Master of Industrial and Slovak) supported by the platform (SAP ECC and
Engineering from EESC-USP; SCM);
► MBA in Business Management from FIA-USP ► He has experience in several industry sectors:
► APICS Certified CPIM ► Metals, mining, aerospace and defense, consumer goods,
automotive, high-tech and beverage,
Skills ► Examples: (Demand Planning and Operations Planning

► Large experience in conduction Value Chain (S&OP) projects):
Management Transformation Programs; ► Bayer Animal Health, Perdigão (BR-Foods), Brasil-Kirin,
► SAP-SCM conduction projects; Embraer, Positivo Informática and CTEEP;
► Software selection projects;

► Business modeling;
► Transformation Programme Management;
► Planning (Medium Term (S&OP), Short Term
(fulfillment management) – 10+ projects;
► Inventory Management - 10+projects;

More than 10 year relationship touching every country leadership
team where Bacardi does business
Which has led to multiple
We have been working with you in four main areas…
specialist interventions
Function Description Relevance
EY and Bacardi have been During the internal audit process we

internal audit partners for the last meet the country GM, FD and ► Customer Promotion
decade. The locations we visit are functional area leaders and we are
determined through an annual risk currently reviewing plants in the
& Advertising
assessment which includes senior network ► Procurement
management interviews In the last three years our teams
1.Internal Audit
have spent time in: ► Supply Chain
• Australia,
• Bermuda, ► Climate Change and
• Central America,
• South America Sustainability
• Many others
► Construction and Real
Bacardi is a significant tax We have established global team
account for EY managed centrally you can rely in all geographies and Estate
2. Tax & DP out of Switzerland over the last 12 deep insight to the nature of the
years Bacardi business
► Fraud Investigation
and Disputes
Over the years EY have That relationship can be leveraged
supported Hector Ortiz and his to the extent that acquisitions is
► IT Risk Advisory
3. Corporate
predecessor with building and determined to be a source of
Development
running models to evaluate network expansion
acquisition targets
A significant number of the We can leverage both our existing
proposed team have prior knowledge of Bacardi Supply Chain
4. Supply Chain
experience of working on Supply combined with fresh insights from
Chain projects with Bacardi other leading spirits companies

Relationships, covering both global as well as market leadership
Global Management
In our role as Internal Audit, Tax & Transfer Pricing and Corporate Development we built strong relationships
with your Global Leadership team, these include:
Role Name Nature of relationship
Chief Commercial Officer Ron Anderson Long standing relationship
Global Head of Tax Mark Gyorog Main contact for global tax matters
Director Global Tax Operations Afke Van Mansum Contact for tax operational matters
International Key Account Manager - Global Renato Azumbujo Various

Accounts
Chief Compliance Officer Eduardo Sanchez Contact for global compliance matters
Head of Internal Audit Kathy Liu Point of contact for Internal Audit
Regional Management
Over the years, we have build strong relationships with your Regional Teams, these include:
Role Name Nature of relationship
EMEIA Tax Director Christophe Maria Contact for EMEIA tax matters
APAC Tax Director James Fournier Contact for APAC tax matters
Americas Tax Director Julie Hendrix Contact for Americas tax matters
Solution Delivery Director & CTO (LATAM) Chad Couch Various
Supply Chain Director Middle East & Africa Erik Sulev Various
Finance Director Bacardi North Europe at George Kester Various

Bacardi Martini B.V

Key Engagements
Internal Audit
Project Name Description Bacardi Owner EY
Procure Pay follow up & Top Fraud Risk Evaluation (China). Evaluation
Procure to Pay Kathy Liu Nikhil Raghu
of fixed cost in a manufacturing site
Nikhil Raghu, Mohinder Singh
Internal Controls Internal Controls Compliance Review Marsha Sealy
and Di Sinclair
BUSA A&P BUSA A&P project - advertising and promotion spend Rob del Rosal Margie Moscoe – Trade Spend
A&P Review A&P Review focused on Russia -Tradall 3rd Party Kathy Liu David Smith-FIDS
Corporate Social Responsibility and Charitable Donations Marcela Duron Manager –

CSR programme Rick Wilson
CCaSS
HRIS Review HRIS Pre-Implementation Review Ann Marie Philips Shiva Goundar – ITRA
Fraud Analysis Fraud & Data Analytics Utilizing SAP (tool to highlight fraud potential) Matt Piscaia Doug Manhart FIDS
Shared Service
Shared Services Controls Assessment Jorge Rodriguez Brett Cowell
Assessment
SAP Master Data SAP Master Data Access Controls – data governance CIO Shiva Goundar
Procurement Indirect Procurement Evaluation (3rd Party

Michael Hinrichs Brett Cowell
Evaluation
Tax & Transfer Pricing

Project Name Description Bacardi Owner EY
Operational model for Grey Goose Vodka (ROW) – planning and
Philip Robinson, Daniel
Project Plumber implementation Mark Gyorog
Gentsch
TP Documentation TP Documentation – EY is the primary service provider globally Mark Gyorog Nicholas Ronan
Deductibility of A&P expenses of Bacardi entity and route-to-market

OME India Mark Gyorog Daniel Gentsch, Raghav Hari
structures

EY | Assurance | Tax | Transactions | Advisory
Ernst & Young LLP

© Ernst & Young LLP. Published in the UK.
All Rights Reserved.
The UK firm Ernst & Young LLP is a limited liability partnership registered in England and Wales
with registered number OC300001 and is a member firm of Ernst & Young Global Limited.
Ernst & Young LLP, 1 More London Place, London, SE1 2AF.
ey.com
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Revised

Bacardi Network & Supply Chain Reinvention

Confidential — all rights reserved

track record with them

British American Tobacco (BAT)

Page 2 Confidential – Draft for discussion purposes only

► Part A: Insight informing the path to ‘breakthrough’ performance

► Key relationships and engagements with Bacardi

Page 4 Confidential – Draft for discussion purposes only

We have therefore propose a structured approach that balances economic value,

1 Top-to-Top commitment from EY executive leadership

We are excited at this opportunity to bring our vast industry capability,

A proven approach & team that EY Supply Chain ranked Best in

Page 6 Confidential – Draft for discussion purposes only

Your achievements to date… The next step in your journey…

1 Build foundation: global organisation

► Significant decrease of average total landed

► Good balance between quick wins and medium

Page 8 Confidential – Draft for discussion purposes only

► Supplier footprint/ ► Manufacturing network ► Distribution network ► Distil vs. bottling

1-2%** 5-10% 5-10% 4-8%

End-to-end flow synchronisation 5-30% reduction in DIO 2-12 days

Complexity management 1-2% of COGS reduction $15-30m

► Purchasing execution ► OEE improvement ► WH & transport ► Account

1-2% 5-15% 3-5% 1-2%

$17-35m $27-66m $18-33m $6-13m

Page 9 Confidential – Draft for discussion purposes only

2. Optimise strategic supply & distribution network

3. Streamline global trade flows and tax optimisation

4. Reinvent Supply Chain operations to lock in & maximise value

We will leverage our EY/ Parthenon Commercial

Page 11 Confidential – Draft for discussion purposes only

Marketing & Marketing &

Page 12 Confidential – Draft for discussion purposes only

Page 13 Confidential – Draft for discussion purposes only

Heritage location In country

Recent examples of bottling Scotch Whisky outside Scotland

Page 14 Confidential – Draft for discussion purposes only

Phase 1 approach will consider Innovation and Product

• Lense 1: Portfolio complexity – Mapping out a high

• Lense 2: Product complexity – Assessing at a high

• Lense 3: Complexity controls – Assessing the current

Page 15 Confidential – Draft for discussion purposes only

247ml 275ml 315ml 300g 280ml 275ml

* format will apply to

455ml 455ml 450m 400ml 455ml

 From 8 caps to 1 (in different colors) Complexity benefits on top

Bad Complexity – drives cost and limits growth

► Initiatives portfolio review

Page 17 Confidential – Draft for discussion purposes only

SC leaders restructure Supply Chain

Leaders in Consumer Products differentiate

between growth vs performance focus

needs and “distribute” SC efficiencies in line

Industry insight: Smaller growth markets

Page 18 Confidential – Draft for discussion purposes only

From country led to integrated

► From country ownership of inventory

Page 19 Confidential – Draft for discussion purposes only

WHAT ARE WE CHANGING?

Centre led Professional Standard Integrated Demand

Source Plan Make Deliver

Page 20 Confidential – Draft for discussion purposes only