Diageo plc · LSE:DGE
Diageo — Investor Presentation (December 2006)
17 slides from Diageo's investor presentation, Dec 7, 2006
Slide 1: Diageo Financial Shared Services Investor Presentation
Diageo Financial Shared Services Investor Presentation 7 December 2006
Slide 2: To participate in the question and answer session
To participate in the question and answer session FRANCE Toll Number: +33-1-70-75-00-04 GERMANY Toll Number: +49-69-2222-52104 IRELAND Toll Number: +353-1-246-0036 ITALY Toll Number: +39-02-3600-0326 NETHERLANDS Toll Number: +31-20-710-9321 SWITZERLAND Toll Number: +41-44-580-7718 UNITED KINGDOM Tol
Slide 3: Strong rationale to invest in financial systems
Strong rationale to invest in financial systems Inherited systems & processes One system platform More challenging control environment Single location Demand for better information within Global processes the business
Slide 4: The benefits of a shared services solution
The benefits of a shared services solution > Standardises processes and information – Standard report card for performance management – All markets operate to the highest benchmark – Changes made once > Enables tight controls/governance > Frees the business to drive growth > Reduces costs
Slide 5: Strong platform created for a shared service operation
Strong platform created for a shared service operation > SAP implemented across the business > Core processes simplified and standardised > Budapest established as the centre for Shared Services
Slide 6: Budapest offers an attractive environment in which to locate
Budapest offers an attractive environment in which to locate > Large and available talent pool > Good quality and cost effective infrastructure > Positive general business environment > Low cost environment
Slide 7: Diageo Business Services Centre - Budapest
Diageo Business Services Centre - Budapest
Slide 8: Budapest covers 70% of Diageo's operating profit
Budapest covers 70% of Diageo’s operating profit. . . Markets covered by Budapest 20 In Market Companies 80% of Supply Corporate Centre
Slide 9: Covering purchase to pay
. . .covering purchase to pay. . . Number of suppliers 44,000 Invoices processed 500k p.a. Cash payments £5bn p.a. Payments processed automatically 96%
Slide 10: Order to cash
. . .order to cash. . . Number of customers 26,000 Invoices raised 300k p.a. Cash collected £6bn p.a. Cashflow benefit £77m
Slide 11: Record to report
. . .and record to report Management accounts reported 98 Statutory accounts reported 251 Reduction in reporting time 6 Days
Slide 12: Higher value activities now migrated to Budapest
Higher value activities now migrated to Budapest Financial Planning Transactional Processes & Reporting Treasury Purchase to pay Target setting Hedging Order to cash Regional performance Forecasting Record to repeat analysis Reporting & control Forecasting Governance & control Common systems Financi
Slide 13: Clear accountabilities in place between Budapest and the markets
Clear accountabilities in place between Budapest and the markets Financial Planning Transactional Processes & Reporting Purchase to pay Regional Target setting Shared services Order to cash Regional performance information Record to repeat analysis Forecasting Standard reports to business Business D
Slide 14: Where next?
Where next? > Further opportunities to drive efficiencies and value for existing markets > Exploring alternative options for International markets
Slide 15: Summary
Summary > Shared services operation now executing for a substantial proportion of Diageo business > Established a platform which has – Improved controls – Improved capital utilisation – Reduced cost – Freed valuable in-market resources > Further opportunities for International business
Slide 16: Questions
DIAGEO BUSINESS SERVICES CENTRE
Slide 17: Cautionary statement concerning forward-looking statements
Cautionary statement concerning forward-looking statements This document contains statements with respect to the financial condition, results of operations and business of Diageo and certain of the plans and objectives of Diageo with respect to these items. These forward-looking statements are made