Copernicus

PROJECT UPDATE AND RECOMMENDATION FOR NEXT STEPS

ExCom, 23 January 2013

Agenda

Project Copernicus

Industry Peers

Identified Opportunities

Going Forward

Appendix

2
Executive Summary 200m DKK opportunity in
expanding scope of Shared Service Centre in Poznan

Expanding scope of Service Centre (ASC) in Poznan a key lever to streamline

operations in WE and drive EBIT run rate of ~200m DKK in annual savings

Good momentum with Finance in ASC, however large part of the organization not
Rationale yet in scope; Excoms guidance in October 2012 to explore opportunities to on-board
more functions

Critical to move now; competition already getting ahead

Worked with all functions in HQ and the region to identify and size opportunities to
migrate activities to Poznan

Identified tactical opportunities that can be captured now and structural

Approach opportunities that require realignment on the operating model (processes, roles,
structures)

Further assessment required by function to confirm opportunities and road map

Kick off effort among WE region, functions and ASC to realign operating model
Decisions by function (processes, role split, structures); integrate with Model Organization
required initiative by WE and follow the Finance Operating Model methodology

Commitment by functions and region to provide resources for April delivery

3
Agenda

Project Copernicus

Industry Peers

Identified Opportunities

Going Forward

Appendix

4
 Competition moving from Accounting Service
Centers to multifunctional Business Services

Evolution of Shared Services Models

ion
Aspirat

Business Services
Performance

ISS Lead
SSCs on Regional or Global level Business Analytics
Fin IT HR Other X-Functional Processes
Business Units / Markets (CRM, S&OP, PLM)
Service Management
X-Functional Back Office
Comms / Training (Procure-to-Pay, Order-to-Cash )
Function
Shared Services
IT & Facilities Support Fin IT HR Other
Function Function
NA EMEA APAC

Discrete Shared Functional Integrated Shared Business Services

Services Shared Services Services
Individual Individual functions 2+ functions Integrated and value-add
functions managed in regional combined in one services and / or products
managed in and / or global shared services delivered
discrete centres centres solution
One service management
Each shared Service Consistent service framework across
centre reporting management management functions
directly to a organised by framework; service
functional lead function / region managed by function
*Currently in transition phase 5
Carlsberg is at risk of falling behind competition

Characteristic
SSCs on regional level, Global BS strategy, Global BS competence,
GBS Strategy SSCs on regional level Global BS execution
ambition to expand being implemented regional execution

Global in progress
Shared service setup Two regionals 2-3 regionals (@ full speed) Global Three regionals

Local SAP, roll-out Local SAP, roll-out Local SAP, roll-out

ERP support Global SAP Regional SAP
ongoing ongoing ongoing
Americas, Europe, Asia,
Regions covered Europe, Asia Africa, Europe, Americas Europe Americas, Europe, Asia
Africa

Locations China South Africa Poland China, Philippines, India China, India
Poland Czech Netherlands Kenya Ukraine, Czech, Hungary
Switzerland 250+ FTEs, Poland center live Hungary, Romania, Argentina, Brazil (2)
since Feb 2012. Developing SSC Slovakia, Czech, UK USA, Canada (2)
is a top strategic priority (200 Columbia, USA
m investment planned to
develop the GBS Organization
GBS FTEs, excl IT CGP + ASC (280) + Asia +EE 200+ until 2014). Implementation is ~ 1.200 + 2.000
at full speed.
Carlsberg ambition
Processes covered
Record To Report X X X X X X
Purchase To Pay X X X X X X
Order To Cash* X X X X
Travel & Expense X X X
Data X X X X X
HR X X X X
Transport X X X
6
* Including Credit Management
Agenda

Project Copernicus

Industry Peers

Identified Opportunities

Going Forward

Appendix

7
Across all functions and Scale markets, 360 - 400
FTEs identified for potential migration

Number of FTEs vs. Ease of implementation

Ongoing
FOM scope
Finance2
>60 FTE Sales support

Requires field Sales field force

force bottom up
assessment
HR
# of FTEs

<60 FTE Logistics

Planning
Marketing
Tax
Communication
<15 FTE
Procurement
BP&I
Legal
- +
Ease of implementation1

Note: Production TBD

1 Ease of implementation = combination of: Current process maturity and harmonization, system requirements & business criticality
2 Ongoing FOM scope agreed prior to Copernicus 28 FTE identified for potential acceleration (CH, DE & HQ)

8
 FTE potential for scale markets
Proposed percentage split based on functional input
Function FTE Baseline Distribution Initial proposal Best Practice
Local ASC
Scale + HQ for transition
As-is 100% 0 FTE
HR 158 Proposed 69% 31% 50 FTE 50 55
Best 65% 35% 55 FTE
As-is 100% 0 FTE
Sales 2660 145 TBD
Proposed 94,6% 5,4% 145 FTE
As-is 100% 0 FTE
Marketing 329 Proposed 95% 5% 16 FTE 16 33
Best 90% 10% 33 FTE
As-is 100% 0 FTE
Planning 264 18 TBD
Proposed 93% 7% 18 FTE
As-is 100% 0 FTE
Logistics 3195 Proposed 99,2% 0,8% 25FTE 25 85
Best 97,4% 2,6% 85FTE

Production 2871 TBD TBD TBD

As-is 94% 6% 6 FTE

Procurement1 102 6 TBD
Proposed 88,5% 11,5% 12 FTE
As-is 97,4% 2,6% 2 FTE
Tax & Legal 78 Proposed 18 TBD
75% 25% 20 FTE
As-is 64% 36% 178 FTE
Finance 498 Proposed 48% 52% 261 FTE 832 91
Best 46% 54% 269 FTE
As-is 100% 0 FTE
Communications 67 Proposed 80% 20% 14 FTE 14 14
Best 80% 20% 14 FTE
BP&I 27 Proposed 75%
85% 25%
15% 4 FTE 4 TBD

Sum: 10.248 186 FTE 360 - 400 TBD

Incl. Challenger
13.964 218 FTE 560 - 600 TBD
Markets

1.Procurement finance included in Finance function (ASC) Annual saving across all WE: 180-220m. DDK3 9
2.Full initial scope of FOM; verification in progress 3.Incl. finance and excl. Production
The value from Business Services stems from labor
arbitrage, efficiency gains and value added service
Sources of Value

Short term Long term

LABOUR ARBITRAGE EFFICIENCY INCREASE

69%

39%
Introducing LEAN ways of working can potentially increase
efficiency by 15 20% within 3 years

Increased transparency
Best practice sharing
Added value services
BSP de-risking

10
Sales field force opportunity difficult to capture
unless the bottom up assessment is done
UK Sample of field force
support done by SSC

Off-Trade On-Trade

Brewers &
National Sales Free Trade
Wholesalers

SSC UK Customer and Sales activities 9 FTE

3 FTE 3,5 FTE 2,5 FTE

Customer Master Data Sales Master Data Sales Queries

Main activities:
Calculating sales reports i.e. volumes sold
Generating pricing reports, off-invoice discount schemes
Calculating and reporting on retrospective discounts
Calculating backdated discounts, clarifying discrepancies

11
Agenda

Project Copernicus

Industry Peers

Identified Opportunities

Going Forward

Appendix

12
The focus going forward will be on the Operating
Model Design

What is next?
1 2

Progress with the Tactical Realign operating model by

Opportunities function

Position FTE Follow the approach from the

Controlling CH, DE, HQ
Regional Controller for EE
IT Controllers + back-office
BI Analyst
Category Expert
Transport Control Tower
Master Planning and SKU Count
Total
12 Finance Operating Model to
1 define
Processes
5
Roles and activity splits
1
between markets, HQ and
6 ASC
3 Org structures
2-4
Coordinate effort within Model
Organization initiative
30 32
13
The Operating Model design is a prerequisite
in order to move forward with Copernicus

Or
g
The Operating Model design
Process St aniz
Mapping ru a
ct tio
should include:
ur n
e
Clear Process mapping and allocation of
activities among markets, HQ and
Poznan in order to understand who will
ired do what
Requ s
Role
Process KPIs to track performance and
enforce continuous improvement

KPI
Roles definition and required
s
competencies
s
o ol Organizational Structures and FTE sizing
T

Systems and tools

Sys
tem
s

14
Service Delivery Model

We know how to do it Finance Operating Model

example

From diversity The high level Initiatives :

a different setup for each market

Define Finance ambition and

strategy
Define Operating model
1. Define delivery model Who is delivering
PL
what
France UK
Markets, Center of excellence, Shared
services, Group/region
Illustrative
2. Define processes
Process design, mapping and
documentation

To standardised 3. Develop organization charts

a common setup for all markets Market and ASC

Business case calculation and road

map planning
Development of the ASC set-up

Illustrative
15
The standardisation can only be taken to certain level,
Operating Model design needs to be completed
by April

3 months

April 18th
Pre-requisites Feb 1st

1. Decision on ASC
recruiting functional
leads Phase
Phase 2
2
2. The Copernicus team
to be involved in Operating
Operating Model
Model Design
Design
Operating Model
design

Phase 2 Outcome

Start migration of tactical opportunities

To-Be Operating Model design
Business Case & Implementation Roadmap
Functional ASC leads in place

16
Copernicus depends on multiple initiatives aiming to
define functional operating models across WE

Sales and
Define support Finance Planning Logistics Production Procurement
Functional functions
Operating Model

?
Finance
Name of the (proposal Organizational
Operating OrgEx OrgEx OrgEx
initiative Model Effectiveness
Model
Organization)

Identify SSC
COPERNICUS
Opportunities

Roll-out process Partially in

BSP in scope processes
standardization BSP scope

17
 Organizing the operating model exercise requires
committing both regional and functional resources
Jrn
Jrn P.
P. Jensen
Jensen Pr
o
R e jec t
Jrn
Jrn Tolstrup
Tolstrup Rohde
Rohde
Functional
Functional Heads
Heads depending
depending on
on topic:
topic: co C
Claudia Schlossberger
Claudia Schlossberger mm ope
Anne-Marie
Anne-Marie Skov
Skov en rnic
Bengt
Bengt Erlandsson
Erlandsson da u
Peter
Peter Ernsting
Ernsting tio s
Khalil
Khalil Younes
Younes STEERCO
STEERCO
n

MARKET-
MARKET- TAX
TAX // PROCURE-
PROCURE- LOGISTICS PRODUCT-
PRODUCT-
Workstream SALES
SALES COMMS
COMMS HR
HR FINANCE
FINANCE PLANNING
PLANNING LOGISTICS
ING
ING LEGAL
LEGAL MENT
MENT ION
ION

PMO
PMO and
and Change
Change Management
Management
Sren
Sren Brinck,
Brinck, Ian
Ian Ormesher,
Ormesher, Lars
Lars Boye
Boye Rasmussen,
Rasmussen, Ted
Ted Akiskalos
Akiskalos

Functional Aleksandar Vivek Ben Morton Nicolay Jan Thieme U. Andersen, Pierre Mille Jan Zeljko Michael
representatives Radosavljevic Sharma Raymund Rasmussen C. Melgaard Breinholt Urosevic Jakob
Jensen

FF

FF

FF
F
ING

GO
GO

GO

GO
Regional Sren Holm Mikkel ? Ian Cecilia N/A N/A N/A N/A N/A
GO

KIN
KIN

KIN

KIN
representatives Jensen Pilemand Ormesher Lundgren
ON

KIC

KIC

KIC

KIC
ASC Functional TBD TBD TBD TBD Marta Kulis TBD TBD TBD TBD TBD
Lead

REQUIREMENTS FOR WORKSTREAM REPRESENTATIVES

Up to 50 60% FTE commitment,
depending on function
Joint market visits
Single point of contact for the function
18
In order to move forward with plan, there are
a few decisions to be made

Decisions needed

1 Agreement to define
Operating Models by
function as part of Model
Organization initiative in
Western Europe

2 Commitment by functions
and region to provide
resources for April delivery

19
Agenda

Project Copernicus

Industry Peers

Identified Opportunities

Going Forward

Appendix
Functional two-pagers
Business Case

20
Opportunities identified in Scale markets together
with functional representatives
FTE Initial
Function Baseline proposal for Key Opportunities identified
Total transition
1. Order to Cash activities within Sales: Manual order entry (fax, email), monitor EDI, create
rebates and trade support credit / debit notes, create credit memos for loans settlement, manage
POD differences, create / maintain invoice lists, create / maintain pricing and quantity complaints,
2. Sales Support / reporting: Data extraction, import to excel & formatting, basic calculations (e.g.
Sell-in reports per customer / category, SKU rankings, wholesalers sell-in / sell- out reports,
Sales Activities
Listings, ), Track and report sales performance reports,
done by Sales 80
3. Other admin activities: Budget report generation (e.g. last estimate), formatting, tracking
Office Personnel
support,
4. Contract and POSM management: Register customer agreements, track POSM material,
5. Value Management: New activity to be performed conducting sales intelligence analysis (e.g.
promotion effectiveness, price elasticity, ), gather and analyze 360 customer data, provide
specific information to field/sales force based on findings,

Sales Field 2660

1. Field force time spent on managing admin tasks: handling customer complaints regarding
Force
65 order delays, wrong quantity, wrong pricing / promotion not applied. Handling additional customer
Administrative
admin requests (e.g. urgent order, provide copy of invoice, summary of rebates applied, )
tasks

1. Standard analytics and reporting; including ROMI and VM once implemented fully
2. Marketing support activities; budget prep and follow up; brand tracking and corrections
Marketing 329 16
3. Support on digital Marketing; domain consolidation within COM Project, to be done 2014/2015
4. Technical support for GSMI portal; user maintenance, access registration, for GSMI portal

1. HQ Intranet support; SharePoint technical support, intranet updates

Communication 67 14 2. HQ graphical support and CVI support; Power Point for CEO presentations and investor relations
3. Local intranet and graphical support; technical support and Power Point excellence center

1. Setting up Transport Control Tower in Poznan to be focused on inbound transportation (e.g.

capturing Can-Pack opportunity cross-border and ExLiD volumes, and primary distribution (from
2014 onwards). Recruitment for 3FTE initiated
Logistics 3195 25
2. Warehouse admin and Route settlement; tracking inventories & movements, stock count
admin.
3. Potential opportunities coming from OrgEx

1. Statistical forecasting; generating and updating parameters / settings, cleaning baselines

Planning 264 18 2. Production Planning back-office and SKU Management; e.g. Abacus project
3. Potential opportunities coming from OrgEx

1. Engineering department; planned to be created for Asia and Poland (2FTE)

2. Plant Maintenance, Maintenance spare parts coordination, admin activities
Production 2871 ? 3. Quality Management;
4. Continuous Improvement back-office; governance, audits, Project Management back-office
5. Potential opportunities coming from OrgEx
21
totaling up to 360 - 380 proposed FTEs
for migration.
FTE Initial
Function Baseline proposal for Key Opportunities identified
Total transition
1. Deploying and testing Category Expert position i.e. supportive function towards Global Category
Procurement 102 6 Managers, also serving as Regional Buyers. Preliminarily to be deployed in Operations and Raw
2. Transactional and administrative opportunities; SAP contract maintenance, contract mgmt.

The Finance work-stream follows the Finance Operating Model estimates. Copernicus has identified
additional FTE for accelerated roll-out pace;
1. Financial Controlling: Capex budgets and estimates; Product costing calculations; IC prices
Finance 498 83 calculations; ABC costing calculations; Period End Controlling and analysis of P&L
2. Accounting (where not migrated yet): Accounts receivable processes; Accounts payable
processes; Closing of the month and reporting; Fixed Assets; Cash Management
The Countries/Functions considered for acceleration: Germany, Switzerland, HQ/CIT

Tax:
1. Centre of Excellence for VAT and Excise Duty, potential for savings from tax optimization
2. Corporate Income Tax ; centralization
Tax & Legal 78 18 Legal
3. Database management and administrative tasks
4. Intellectual Property data management; registrations
5. Ad hoc Projects; Insiders lists management, E-learning maintenance

1. HR MD and Reporting: Maintain employee database, maintain Organizational Charts, FTEs,

Standard HR reports support data standardization before migrating
2. Recruiting Support for white collars: Create job posting, Screen candidates, rejection letters,
maintain candidate database, etc. Valid for mass recruitments and early recruitment stages
3. Personnel Admin: Answer basic HR requests e.g. Policy driven enquiries such as leave of
HR 158 50 absence, policies, Performance Management process, Career development, etc. start with Mobility
4. Learning Admin: Maintain training course catalog, Facilitate training registration, course delivery
and training evaluation etc.
5. Survey Admin: Admin C15, MyVoice, etc. Reporting
6. Payroll Admin Support: Support of payroll questions and reporting e.g. Travel expenses, payslip
details, benefits actual payroll processing to remain as is. Highly specific local knowledge required

4 FTE refers to BP&I positions to be transferred once project phase is concluded:

1. Service Management; reporting related to Business Process Management
2. Business Analyst; within Business Intelligence, reporting to BI Lead
BP&I 27 4
3. Roles and Authorizations; administrating accesses to digital tools etc.
4. Integration tests and requirement management; filtering change requests, registering etc.
+ Functional Master Data; evening up the current ASC scope for Production MD, Sales MD etc.

Sum: 10.248 360 - 380

22
Opportunities exist to maximize current scope of
activities in SSC

Not in
ASC current scope started
scope

% of FTEs of IT
% of FTEs of
countries in FIN
WE HQ incl.
scope DK SWE NOR UK CH PL DE BALTICS CGP FR SEE
CIT

FINANCE est.avg. est.avg.

MtC - Accounts
receivable
49,0% 35,3%
MtC - Credit
Management
0,6% 0,4%
ATD - Assets
Management
64,0% 47,2%
RtR - Cash
Management
46,0% 33,0%
RtR - Period End
Closing
42,0% 30,0% () ()
RtR - Period End
Controlling
10,0% 0,7%
RtR/FTD-Other
Controlling
no data no data
StP - Accounts Payable 87,0% 67,0% ()
RtR - Taxes (VAT) no data no data (*)

Source: ASC, Team analysis 23

Notes: Brackets indicate that % of FTEs covered is below 10%. * Latvia and Estonia partly
Some non-finance activities already handled in
SSC but potential to do more
Not in
ASC current scope started
scope

% of FTEs of IT
% of FTEs of
countries in FIN
WE
scope DK SWE NOR UK CH PL DE BALTICS HQ incl. CGP FR SEE
CIT

NON-FINANCE est.avg. est.avg.

E-Procurement 100,0% no data ()

% of tasks % of tasks
MD - Master Data
in process in process

MD - Cross Functional
34,0% no data
Master Data *

Vendor Master Data 50,0% no data () ()

Customer Master Data 37,0% no data ***
Material Master Data 9,0% no data () () () ()
MD -Functional Master
15,0% no data
Data **

Workflow Master Data 55,0% no data ()

Procurement Master
Data
6,0% no data
Sales Master Data 10,0% no data () () () ()

Source: ASC, Team analysis

Notes: Brackets indicate that % of FTEs covered is below 10%. * Customer, Vendor and Material Master Data. ** Workflow, Procurement, Sales, GL, Controlling, 24
Logistics, Production, X-Functional, HR Master Data, *** only Lithuania
 Opportunities identified in HR

IDENTIFIED OPPORTUNITIES FTE IMPACT ESTIMATE

8/22/17 8/22/17
1. HR Master Data & reporting
2. Recruitment support 8/22/17 8/22/17
3. Personnel Administration (policies &
basic queries)
4. Learning & Development Admin Local 8/22/17
5. Survey Administration (MyVoice, C15,
etc.) 8/22/17 8/22/17
6. Payroll administration support (admin
and support of external providers)

8/22/17 8/22/17 8/22/17 8/22/17

AFFECTED PROCESS STEPS
8/22 8/22/17 8/22/17
Part of process in scope /17
Not in scope
Baseline 158 FTE 158 FTE 158 FTE
Expenses Mgt.

Termina- tion

Expatria- tion

Organisa-tion
Perfor-mance
Recruitment

sation Mgt.

ASC 0 FTE 50 FTE 55 FTE

Time Mgt.

Personnel
Compen-
Develop-
Payroll

Admin
Travel
ment
Mgt.

Mgt.

Local 137 FTE 87 FTE 79 FTE

Central 21 FTE 21 FTE 24 FTE

Total baseline WE 227 FTE 227 FTE 227 FTE

Assumptions and source of information

Only TANGO II data and countries included (DK, Fi, F, N, Pl, S, CH, UK) + HQ
Straight average on % split on hire-to-retire process used for calculations 25
Functional opportunities - HR
Opportunity Benefit FTE Transfor Pre- Feasibility Comment
type impact mation requisites (H, M, L)
type
HR Master data & Reporting FTE transfer 5-10 Lift and N/A M Common HR MD needed
- Maintain employee database + process FTE shift ASC can support the
- Maintain Organizational efficiency standardization in the
Charts, FTEs gain current Excel setup before
- Standard HR reports migrating
Recruiting Support FTE transfer 3 FTE Lift and Electronic L White Collars in scope -
- Create job posting + Value shift recruiting Blue collars typically locally
- Initial screen of candidates Added system but seasonal staffing can
for mass recruitments service be moved to outside
- Admin talent pools provider e.g. Randstad
Personnel administration FTE transfer 21 FTE Transform HR Service L Local language
- Answer basic HR inquiries + process ational Management requirements if Blue Collars
and requests, efficiency setup, are in scope; requires
- Maintain case management gain Standardized standardization of
tool contracts contracts; immediate
potential in mobility area
Learning Administration FTE transfer 3-5 FTE Transform MyCarlsberg M Further benefits in closing
- Maintain training course + process ational used as local training admin
catalog and calendar efficiency standard systems
- Facilitate training gain learning Further benefits within BSP
registration, course delivery platform and Group functions
and training evaluation training coordination
Survey Administration FTE transfer 1-2 FTE Lift and Defining HR H MyVoice, C15, etc. Setup
- Admin C15, MyVoice, etc. shift approach to and Reporting in Shared
- Reporting surveys Service
Payroll Administration support FTE transfer 13 FTE Transform Standardizing L External payroll providers
- Consolidation of Payroll ational and seen as GBS sourcing
providers automating option ASC could provide
- Basic policy driven queries the process single point of contact for
- Reporting necessary admin and questions
Initially look at low 26
complexity countries
 Sales: Opportunities identified

IDENTIFIED OPPORTUNITIES FTE IMPACT ESTIMATE

1. Sales support / reporting

2. Contract and POSP management Best practice
8/22/17 8/22/17 dependent on
3. Other admin (e.g. budget follow-up) 8/22/17 8/22/17 value added
4. Value management analysis services and
process in
5. Order to Cash activities within Sales scope
6. Field force time spent on admin tasks
100 % 98 % 92 %
8/22/17 8/22/17 8/22/17
AFFECTED PROCESS STEPS*
Part of process in scope
Not in scope

8/22/17
8/22/17 8/22/17
Sales
AR
Master

Sales force
AR and
Master data

Invoice

Customer
allocation

collection
customer
Invoice to

technical
Customer
allocation

collection
customer

Dispute

technical
services
service
Dispute
Orders

services

Order to
service
Credit

Orders
Mgmt.

Mgmt.
Credit

Mgmt
Mgmt.

Mgmt.

Stock

Mgmt
Stock

and cash

cash 8/22 8/22/17

force //
data

cash

/17
to

Baseline 2660 2660

Target setting
Define sales

Wholesaler

Customer
measuring

Field sales

Invoice to
customer
strategy

mgmt.

mgmt.

mgmt.
Price
KAM.

relation-
and

ASC 0 FTE 145 FTE2

ship
Local 2587 FTE 2442 FTE

Central 73 FTE 73 FTE

Total Baseline WE 4012 4012

Assumptions and source of information

Only TANGO II data for some countries i.e. DK, FI, FR, NO, SE, UK, CH, PL. Org. charts for HQ
1
145 FTEs = Sales Support & Reporting (22 FTEs) + Contract Management (10 FTEs) + Other Admin (8 FTEs) + Field Force spent on admin tasks (65 FTEs) + Order To Cash 27
administrative tasks by Sales Offices personnel (40 FTEs)
* High-level process description not part of BSP mapping
Functional opportunities
Sales Support & Sales Field Force
Opportunity Benefit FTE Transfor- Pre-requisites Ease of Comments
type impact mation implementa-
type tion
(H, M, L)
Sales Support

Sales support / reporting FTE transfer 22 FTE Lift and shift Language M Evaluation for further
requirements standardization (in terms
of reports and tools)

Contract management and FTE transfer 10 FTE Lift and shift Language M Evaluation of whether
POSM + value requirements tool implementation (like
management added Common way of on track) makes more
activity handling POSP sense

Other Admin (e.g. budget FTE transfer 8 FTE Lift and shift Language H
follow up) + value requirements
added

Value management Value added TBD New function Toolbox training M Most markets dont have
analysis activity / FTE dedicated VM resources
transfer today. Would be an
added service.

Order To Cash Activities FTE transfer 40 FTE Transforma- Customer Service M Further benefits to be
within Sales + value tional Operating Model enhanced e.g. efficiency
- Order Mgmt. added Language Savings, Service Level
- Claims Mgmt. requirements improvement, overdue
- Sales Support Admin reduction
work
- Other OTC admin

Sales Field force

Field Force spent on Admin FTE transfer 32-65 FTE Transforma- Same as Order To M Need to align with Field
Tasks + value tional Cash Force Operating Model
- Customer Claims added initiative
(pricing, quantity,
quality)
- Customer Requests

28
 Opportunities identified in Marketing

IDENTIFIED OPPORTUNITIES FTE IMPACT ESTIMATE

1. Standard analytics and reporting

8/22/178/22/17 8/22/17
2. Marketing support activities 10-20%
3. Technical support on digital Marketing 10-20%
4. GSMI portal support maintenance, 22%
22% 15-25%
access registration etc. 8/22/17 8/22/17 8/22/17
5. Printed materials 60-80%

8/22/17 8/22/17 8/22/17 15-25%

AFFECTED PROCESS STEPS*
8/22 8/22/17 8/22/17
Part of process in scope
/17
Not in scope
Baseline 329 329 329

ASC 0 FTE 16 FTE 33 FTE

research and

strategy &
marketing

marketing
Consumer
mktg and

develop-

planning
promos

Market
Brand
Mgmt.

Digital

Trade
ment

Price

Local 256 FTE 240 FTE 214 FTE

Central 73 FTE 73 FTE 82 FTE

Total Baseline WE 462 462 462

Assumptions and source of information

Only TANGO II data for some countries i.e. DK, FI, FR, NO, SE, UK, CH, PL. Org. charts for HQ
Only TANGO II data for some countries i.e. DK, FI, FR, NO, SE, UK, CH, PL. Org. charts for HQ (excl. sales and R&D)
Standard analytics estimated to 2-3 FTEs per market with 40% impact
Marketing support estimated to 2-3 FTEs per market with 50% impact
29
Functional opportunities - Marketing

Opportunity Benefit FTE Transformation Pre-requisites Feasibility Comments

type impact type (H, M, L)
Standard Cost 7 FTE Lift and shift Assessment needed L Potentially more
analytics and reduction - of how much of the FTEs once ROMI and
reporting (incl. currently work is qualitative VM structure have
ROMI and VM) outsourced and how much is been defined. 40%
quantitative of 17 FTEs

Marketing FTE 9 FTE Lift and shift Assessment needed M e.g. Admin SAP,
support activities transfer of how much of the brand tracking and
(e.g. budget prep work is qualitative corrective measures.
and follow-up) and how much is PL and CH estimated
quantitative to 4 FTEs. 50% of
17 FTEs

Support on digital Value TBD (no FTEs Transformational .COM project being TBD depending Potential lies in
Marketing: added locally) up and running on current defining operating
- Content activity (2014 / 2015) maturity level model for digital
Management and short term across the group
- Search Engine ambition for and completing the
Optimization these digital marketing
(SEO) capabilities initiatives

Maintenance, FTE 0,5 FTE Lift and shift H Combine with other
access transfer / (student technical support
registration, etc. Cost assistant) resources from
for GSMI portal reduction Communications

Strategic decision
Cost Transformational on centralizing
Printed materials TBD L
reduction printed material
production

30
Planning: big potential in tackling local structures,
incremental opportunities in central organization

IDENTIFIED OPPORTUNITIES FTE IMPACT

1. Master Planning Tactical Supply Chain Detailed best-

practice process
Planning, Production Planning split identified
2. Statistical forecasting (generating, updating however no %
8/22/178/22/17
8/22/17 calculated as
parameters and settings, reviewing baseline) FTEs have not
3. Forecast analytics and reporting been
categorized
4. Stock policies and replenishment accordingly.
5. Inventory reporting and analytics
6. Potential opportunities coming from OrgEx 8/22/17 8/22/17
8/22/17

8/22/17 8/22/17 8/22/17

Notes:
Project Copernicus perceived as an enabler to 8/22 8/22/17
standardize and revolutionize Planning processes locally /17
Central Planning team fairly small (25 FTE), but
potential of moving junior positions is high (when Baseline 264 FTE 264 FTE
vacancies appear or organization will be preparing itself
for CSC) ASC 0 FTE 18
Higher potential within local organization Local 239 FTE 221 FTE
Big potential in looking into currently running OrgEx
Project alignment to involve ASC Central 25 FTE 25 FTE

Total Baseline WE 352 FTE 352 FTE

31
Logistics: very concrete opportunities within
Transportation, more to be identified during OrgEx

IDENTIFIED OPPORTUNITIES FTE IMPACT

Logistics is a highly local
1. Transport Control Tower: function and only very small %
fraction can be centralized
Inbound Transportation
8/22/17 8/22/17 8/22/17 8/22/17
Cross-border volumes
ExLiD volumes
Primary Distribution *
2. Potential opportunities coming from OrgEx

8/22/17 8/22/17 8/22/17 8/22/17

* Currently no possibility to tackle in 2013

Notes: 8/22/17
8/22/17 8/22/17 8/22/17
Logistics is divided into: Transportation, Warehouse,
Distribution and Support. Opportunities are mainly in 8/22 8/22/17 8/22/17
Transportation where 50% of resources can be sourced /17
from shared services (total current number of FTE in all
WE is 52) Baseline 3195 3195 3195
Concrete chance in Inbound Transportation, related to
Can-Pack contract operational handling (switching to ASC 0 FTE 25 FTE 85 FTE
incoterms EXW saves 800k)
Local 3182 FTE 3154 FTE 3094 FTE
More opportunities to be revealed during OrgEx. Moving
resources as side effect, main focus on increasing Central 13 FTE 16 FTE 16 FTE
efficiency and reducing headcount (not quantified yet)
Total Baseline WE 3787 3787 3787
Alignment with OrgEx Project Manager (Daniel Philipson)
on ASC involvement in defining future Logistics
operating model. Pilot countries: FI, UK, CH
32
Functional opportunities Logistics

Opportunity Benefit FTE impact Transformat Pre- Ease of Comment

type ion type requisites implement
ation
(H, M, L)
Inbound FTE 20-30 Trans- Completion of H Part of Transport
Transportation transfer formational Can-Pack Control Tower
(Can-Pack) contract,
capability within
ASC

Cross-border and FTE Lift and shift Capability M Part of Transport

ExLiD volumes transfer 20-30 Control Tower

Primary FTE Lift and shift Capability M Part of Transport

Distribution transfer 20-30 Control Tower

OrgEx possibilities FTE TBD Lift and shift Capability M Workshops on pilot
transfer + Trans- countries (FI first)
formational will start Jan 2013

33
Production: some potential in Maintenance and
Support, OrgEx to confirm and identify more

IDENTIFIED OPPORTUNITIES FTE IMPACT

1. Engineering department in Asia and Europe

2. Maintenance spare part coordination
3. Quality Management (ASC)
4. Plant Maintenance
5. Continuous Improvement (government,
A TA E
audits) D ABL
6. Potential opportunities coming from OrgEx
8/22/17
NO A I L
AV

(Central)

8/22 2013 impact 8/22/17 8/22/17*

Notes: /17
Production is a highly local function, with most
FTE consuming activities performed on-site: B&P, * Insufficient information on best practice split for Functional Head to confirm
Packaging (>2000 FTE) Utility
Small part of Production creates opportunity to Baseline 4702 4702 4702 4702
use shared services e.g. Maintenance, Production
Support ASC 0 FTE tbd tbd tbd

More opportunities to be revealed during OrgEx. Local 4666 FTE 4666 FTE 4666 FTE 4666 FTE
Moving resources as side effect, main focus on
increasing efficiency and reducing headcount (not Central 36 FTE 36 FTE 36 FTE 36 FTE
quantified yet)

34
Procurement: limited potential, testing Category
Expert position being the only meaningful initiative
IDENTIFIED OPPORTUNITIES FTE IMPACT
1. Testing Category Expert position Full scope
2. Transactional and administrative dependent on
Category
activities locally i.e. CGP contract Expert
creation, local procurement contracts* testing
8/22/178/22/17 results and
3. Incremental positions enabling 8/22/17
post-BSP
addressing more spend and increasing Procurement
efficiency (e.g. Artwork Management, organization
Claim Handling) 8/22/17 8/22/17 8/22/17
* Relevant for Golden Solution. Small potential
at the moment, already researched by
Organizational Efficiency Project

Notes: 8/22/17 8/22/17 8/22/17

Reaching 100% spend control and addressing remaining 500
million are main objectives 2013 / 2014
Actual move of resources on bigger scale can only take place in
2015, once certain level of standardization has been secured by 8/22 8/22/17
BSP, function has reached Golden State solution in building /17
operating model and shared service setup has been tested
successfully
Baseline 102 101*
Low cost locations have already been recognized - Category
Experts are being deployed both in SEE and ASC (4FTE each). ASC 6 FTE 12 FTE
POS sourcing in Asia (10FTE) and already existing e-Procurement
team in ASC (6FTE) come on top Local 52 FTE 43 FTE
Category Expert role as an outcome of Organizational Central (CH) 34 FTE 32 FTE
Effectiveness Project. The end game is deploying 12.5 FTE taken
out of local organizations to take over regional buyer tasks and Central (low cost) 10 FTE 14 FTE
work on cross-country basis Total Baseline WE 130 130
Possible incremental positions (e.g. Artwork Management, Claim
Handling, Contract Management) enabling increased efficiency LOW COST HUBS
and accessing spend that has not been addressed so far 35
Functional opportunities Procurement

Ease of
FTE Transformati Pre- implemen
Opportunity Benefit type Comment
impact on type requisites tation
(H, M, L)
Successful test of CE
Testing Procurement position as a
6 FTE Trans-
Category FTE transfer knowledge and H prerequisite to use
formational shared services more
Experts capabilities
extensively

Transactional FTE transfer + Small potential gain

already researched
and process Lift and shift
3 FTE No M by OE Project
administrative efficiency gain (fraction of FTEs
activities across countries)

Creating Claim
Handling front desk
Trans-
Claim Handling Value added N/A Capability M to handle simple
formational claims and divert
more complicated

Centralized AM would
Trans- increase efficiency
Artwork
Value added N/A formational Capability and transparency +
Management M relieve Category
Managers

Assuring contract
compliance with tax
Trans- requirements,
Contract Value added
N/A formational No M checking contract
Support completion,
uploading into ARIBA
etc.

36
Tax and Legal: Opportunities identified

IDENTIFIED OPPORTUNITIES FTE IMPACT

1. Legal: Database management and

administrative tasks.
2. Legal: IP management 8/22/17 8/22/17

3. Legal: E-learning, Ad hoc projects, managing 38% 8/22/17

insiders lists. 8/22/17 8/22/17 19%
4. Tax: Centre of Excellence for VAT and Excise
8/22/17
Duty, potential for savings from tax
optimization
5. Tax: Corporate Income Tax (CIT)
centralization
8/22/17 8/22/17 8/22/17

8/22 8/22/17
/17
Baseline 78 78
ASC 2 FTE 5 FTE
CoE/ASC 0 FTE 15 FTE
Local 30 FTE 15 FTE
Central 46 FTE 43 FTE
Total Baseline WE 102 102

37
Tax and Legal Opportunities
Opportunity Benefit FTE Transformation Pre-requisites Ease of Comment
type impact type implemen-
tation
(H, M, L)
Legal

Database FTE transfer 1,5 FTE Lift and shift + N/A H Subject to further
management + agency transformational assessment; may provide
and admin. tasks costs efficiency gains in the
reduction HQ functions, e.g. service
part of 260 K DKK spent
on license and service of
CS Stars

IP management FTE transfer 1,5 FTE Lift and shift Decision to H Subject to further
centralize the local assessment; may provide
Countries IP efficiency gains in the
management HQ functions

Ad hoc Projects, FTE transfer <1 FTE Lift and shift N/A M Subject to further
Insiders lists TBD assessment; may bring
management, E- about both efficiencies in
learning the HQ and FTE savings
maintenance

Tax

Centre of Tax 10-12 FTE Transformational + Very high M Up to 1-2 m EUR of

Excellence for optimization Lift and shift international tax benefit from tax
VAT and Excise + FTE transfer skills; Tax optimization expected;
Duty, potential for optimizing software ASC may be a candidate
savings from tax an enabler for the CoE location.
optimization

Corporate Income FTE transfer 1-3 FTE Lift and shift Very high M FTEs to be assessed
Tax international tax further
centralization/ skills; successful
CoE VAT centralization

38
Opportunity to accelerate FOM

IDENTIFIED OPPORTUNITIES FTE IMPACT ESTIMATE

1. Accelerate DK/CH/DE full FOM roll-out

2. Accelerate HQ-Group Finance FOM roll-out 8/22/17 36%
FOM FTE impact
deemed too 52% 8/22/17
aggressive by
Carlsberg
stakeholders;
verification in
progress
Local 55%
40% 8/22/17

Central 10% 7% 8/22/17

Notes:
8/22 8/22/17 8/22/17
Total FOM vs Best practice split; /17
Accounts Payable: 100/100% Baseline 498 498 498
Accounts Receivable: 73/80%
ASC 178 FTE 261 FTE* 269 FTE
General Ledger: 87/70%
Credit management: 0/60% Local 272 FTE 201 FTE 209 FTE
Financial Controlling: 83/60% Central 48 FTE 36 FTE 20 FTE
Financial Reporting: 91/70% Total
715 715 715
Finance MD maintenance: 100/100% Baseline

* Notes: ASC potential include full FOM scope 39

Finance (FOM) opportunities
Opportunity Benefit FTE Transfor Pre- Feasibility Comment
type impact mation requisites (H, M, L)
type
Accelerate Finance CH, DE FTE 9,9 FTE; Lift and Skilled work- M Not recommended
maximum FOM scope: transfer 6,3 FTE shift force able to by FOM Steering
- AR, AP (4,7) provide support Committee; risk of
- GA (4,2) with BSP later jeopardising BSP
- Financial Controlling & increased
reporting (6,8)
- Finance MD (0,5)

Accelerate Finance HQ: FTE 12 FTE Lift and Skilled work- M (5 FTE); M- (7 Not recommended
- Financial Accounting (6) transfer shift force able to FTE) by FOM Steering
- Group Financial provide support Committee
Controlling/ Consolidation with BSP later
(1)
- Group Controlling (3)
- Regional Controlling (2)

40
 Communications: Opportunities identified

IDENTIFIED OPPORTUNITIES FTE IMPACT ESTIMATE

8/22/17 8/22/17
1. HQ: Intranet technical support and
8/22/17
updates
2. HQ: Graphical / CVI resource (external)
3. Local: Intranet technical support 8/22/17 8/22/17
4. Local: Graphical support 8/22/17
5. Press cuttings/ translations

8/22/17 8/22/17 8/22/17

8/22 8/22/17
/17
Baseline 67 67

ASC 0 FTE 14 FTE

Local 44 FTE 31 FTE

Central 23 FTE 22 FTE

Total Baseline WE 91 91

Assumptions and source of information

Only TANGO II data for some countries i.e. DK, FI, FR, NO, SE, UK; Org. charts for CH, PL and HQ; Technical support estimated ca. 30% of internal comms.;
graphical support estimated ca. 15% of internal comms.
41
Functional opportunities - Communications

Opportunity Benefit FTE impact Transformation Pre-requisites Ease of Comments

type type implementat
ion
(H, M, L)
HQ: Intranet FTE 0,5 FTE Lift and shift H 0,6 FTE + students
technical support transfer
and updates

CVI resource Cost 0,5 FTE Lift and shift Align CVI governance M Not on FTE budget
(external) reduction and engagement but equivalent to 1
model FTE

HQ: Graphical 0,5 FTE M

HQ CSR 0,3 FTE M

Reporting

Local: Intranet FTE transfer 4,9 FTE Lift and shift M 30% of internal
technical support communications
FTEs

Local: Graphical FTE transfer 2,4 FTE Lift and shift M 15% of internal
support communications
FTEs

Locally FTE transfer 4,9 FTE Lift and shift M 30% of internal
developed news communications
FTEs

Translations Cost N/A TBD

reduction

Press cuttings Cost N/A TBD

reduction

42
 BP&I: some opportunities identified

IDENTIFIED OPPORTUNITIES FTE IMPACT ESTIMATE

1. Business Process Management Service Management &

Reporting
8/22/17
2. Business Intelligence Direct recruiting of Business
No reliable data on local 8/22/17
Analyst in ASC
involvement in
3. Integration Mgmt. Maintenance of Process Model Functional Master Data
4. Integration Mgmt. Admin. Of Roles & Authorizations
5. Integration Mgmt. Test & Requirement management
6. Functional Master Data - MD objects in Procurement, 8/22/17
Production, Finance & Sales (not part of 27 BP&I FTE)
8/22/17
8/22/17
8/22/17
8/22/17
8/22/17
AFFECTED PROCESS STEPS
8/22 8/22/17
Part of process in scope /17
Not in scope Baseline 27 27

ASC 0 FTE 4 FTE

Process Deploy-

Monitoring
Evaluation

Execution
Request
Change

Process

Process
ment

Local N/A N/A

BP&I (Central) 0 FTE 23 FTE

ASC Master Data 35 FTE TBC

Assumptions and source of information Total Baseline WE 27 FTE 27 FTE

Currently BP&I exists within the BSP/P1 Programme with all FTEs allocated there
Resources in BP&I will typically come from BSP/P1 project and transfer from project into BP&I
Original savings within the original BP&I Business Case are not included in Copernicus
Baseline for BP&I is 27 FTE numbers based on prior Business Case Discussion will be updated during 2013 discussions 43
 Functional opportunities BP&I
Opportunity Benefit type FTE impact Transformation Pre-requisites Feasibility Comment
type (H, M, L)

Business Process FTE transfer + 1 FTE Lift and shift Service M Combination of BP&I and ASC
Management Process Management will ensure Market FTE
- Service Efficiency Gain framework & reductions and Efficiency
Management process across QA function also in Carlsberg
CIT and BP&I IT

Business FTE Transfer 1 FTE Lift and Shift N/A H Recruit vacant BI Analyst
Intelligence position directly into ASC
- Business
Analyst FTE

Integration Value Added 1 FTE Lift and shift M Currently within the scope of
Management service BSP/P1 programme
- Maintenance of Right competencies required
Process Model

Integration Value Added 1 FTE Transformational Identity H Currently not fully supported
Management service Management + in Carlsberg some parts lies
- Admin. of Roles HR Master Data within CIT
& Authorization tools Monitoring Activities
Right competencies required

Integration Value Added N/A Transformational Requirement H Capability build up in BSP/P1

Management service and Test tools programme the investment
- Integration from BSP/P1 should be harvested and
Test & consolidated in ASC
Requirement
management

Master Data FTE transfer + H Lift and shift Follow BSP/P1 M Local Procurement Contracts,
- Functional MD Process Transformational roadmap Supplier Info Records,
objects in Efficiency Gain Production Master Data (BOM,
Procurement, Master Recipe, Production
Production, Version),CLM in Finance,
Finance & Sales Standardized Pricing and
Rebate activities in Sales
44
BP&I Organization - Centrally coordinated New
Proposal (Short Term ~ 1-5 Years)

BP&I
BP&I
Lead

Backoffice

Integra
Group BPMs MDM
MDM BI
BI tion
tion
Lead Lead
Lead
BPM
BPM BPM
Planning E2E
E2E
Sales
Process
Integrators
Integrators
Data Model MDM Gov. Business
Business
BPM Owners & Maint. Analyst
BPM
BPM
Procure
Finance
ment
ment
Roles
Roles &
& Business
Process
Process
BOA experts Authorizati Process
Process
Modeling
moving to ASC ons Architect
BPM BPM
BPM after full BSP
Produc Logistic
tion implementation
tion

Functional BPMs
Business Experts
supporting each BPM
Moving toward end to
end process BPMs

45
Agenda

Project Copernicus

Industry Peers

Identified Opportunities

Going Forward

Appendix
Functional two-pagers
Business Case

46
 Cost bucket FTE cost per function in 000 DDK

Tax & Communi

Function Production Sales Logistics Marketing Finance Planning HR Procurement BP&I
Legal -cation

Scale + HQ

# FTE 2.871 2.660 3.195 329 319 264 158 97 76 67 27

Labor cost 1.240.272 1.090.232 1.043.760 258.259 160.627 145.094 118.136 57.045 52.085 52.975 18.961

Challenger

# FTE 1.188 1.352 592 133 186 88 69 27 24 24 0

Labor cost 258.984 246.118 87.616 51.088 53.708 18.304 18.489 6.218 8.720 5.400 0

Collective:

# FTE 4.059 4.012 3.787 462 505 352 227 124 100 91 27

Labor cost 1.499.256 1.336.350 1.131.376 309.347 214.334 163.398 136.625 63.263 60.805 58.375 18.961

Mil. DDK 1.499 1.336 1.131 309 214 163 137 63 61 58 19

Sum: 4.992 M DDK

*Based on 13.746 FTEs in scope for Copernicus. 47

 FTE potential for all WE markets
Percentage split extracted from functional workshops
Function FTE Baseline Distribution Initial proposal Best Practice
Total Local ASC for transition
As-is 100% 0 FTE
HR 227 Proposed 69% 31% 70 FTE 70 80
Best 65% 35% 80 FTE
As-is 100% 0 FTE
Sales 4012 92% 8% 218 TBD
Proposed 94,6% 5,4% 218 FTE
As-is 100% 0 FTE
Marketing 462 Proposed 95% 5% 23 FTE 23 46
Best 90% 10% 46 FTE
As-is 100% 0 FTE
Planning 352 25 TBD
Proposed 93% 7% 25 FTE
As-is 100% 0 FTE
Logistics 3787 Proposed 99,2% 0,8% 30FTE 30 98
Best 97,4% 2,6% 98FTE

Production 4059 TBD TBD TBD

As-is 93% 5% 6 FTE

Procurement1 130 9 TBD
Proposed 88,5% 11,5% 15 FTE
As-is 97,4% 2,6% 2 FTE
Tax & Legal 102 28 TBD
Proposed 75% 29% 30 FTE
As-is 64% 29% 210 FTE
Finance 715 Proposed 48% 50% 361 FTE 1512 176
Best 46% 54% 386 FTE
As-is 100% 0 FTE
Communications 91 Proposed 80% 20% 18 FTE 18 18
Best 80% 20% 18 FTE
BP&I 27 Proposed 75%
85% 25%
15% 4 FTE 4 TBD

Sum: 13.964 218 560 600 TBD

1.Procurement finance incl. in finance function (ASC). 2.Full initial scope of FOM 48
verification in progress 3.Incl. Functions out of scope.
The end-state yearly savings across all functions is
200m DDK, including consolidation and efficiency

Baseline Proposed Weighted Weighted Labor Yearly end-

scope average cost average cost arbitrage per state Savings
per FTE per FTE FTE
Poznan
Scale + HQ
379 FTE 499 DKK 147k DKK 352k DKK 133.6m DKK
Challenger
197 FTE 246k DKK 150k DKK 96k DKK 18.9m DKK
Sum:
13.964 FTE 576 FTE 413k DKK 148k DKK 265k DDK 152.6m DKK
Consolidation effect 5%:
+ 7.7m DDK 160.2m DDK
Efficiency 20%:
+ 32m DDK 192.2m DDK
Production assumption:
30 FTE + 7.9m DDK 200.2m DKK
26.8m Euro

Not including: loaded costs (facilities etc.) and transition & severance costs
49
Average cost per functional FTE

Function Average cost Average cost Comment

per FTE Scale per FTE
Challenger
Sales 403k DKK / 54k 182k DKK / 24k Corresponds well with external benchmarks

Marketing 707k DKK / 95k 384k DKK / 51k Looks high

Finance 478k DKK / 64k 289k DKK / 39k Scale corresponds well with external
benchmarks. Challenger deemed high
Tax & Legal 583k DKK / 78k 363k DKK / 49k Validation ongoing

HR 649k DKK / 87k 268k DKK / 36k The cost is deemed high for scale.

Communication 663k DKK / 89k 225k DKK / 30k

BP&I 702k DKK / 94k N/A

Procurement 532k DKK / 7qk 230k DKK / 31k The cost is deemed to low for challenger

Logistics 328k DKK / 44k 148k DKK / 20k

Planning 534k DKK / 72k 208k DKK / 28k Planning looks ok, however a more detailed
exercise needs to be done in order to verify.
Production 432k DKK / 58k 218k DKK / 29k The cost is deemed very high.

Weighted ave. 485k DKK / 65k 246k DKK / 33k Weighted average based on the in-scope FTEs

50
Methodology
Baseline Proposed Weighted Weighted avg. Labor Yearly end-
scope avg. cost per cost per FTE arbitrage per state Savings
FTE Poznan FTE
Tango (2010): for all HQ + Scale
functions except for
Production, Logistics, FTEs or % HFM HR reports Mercer Weighted FTEs in scope
Procurement, Scale split per country, benchmarks 2012 average for the Scale
markets; Challengers identified adjusted at % for Polish market cost/FTE in the markets and
extrapolated. through based on for positions region less HQ multiplied
workshops; analysis of: proposed to be Weighted by the labour
FOM (2011): for FOM split for transferred from average cost arbitrage per
Finance, all markets. Finance. Types of the Scale markets per FTE Poznan FTE for those
positions and HQ weighted for the region markets
HFM (budget 2013): proposed to be by the number of (Scale markets
for adjusting totals and transferred the positions per +HQ)
for Production, (junior/senior) function
Logistics,
Challenger management
Procurement data;
corrections based on Extrapolation positions Mercer Weighted FTEs in scope
workshops with of % split reported in benchmarks 2012 average for the
Functions. assumed for functional parts, for Polish market cost/FTE in the Challenger
Scale for positions region less markets
BSP data collection markets; Typical span of proposed to be Weighted multiplied by
sheets (2007) helped -FOM split for salaries transferred from average cost the labour
with mapping the data Finance between junior the Challenger per FTE Poznan arbitrage per
from different sources and senior markets weighted for the region FTE for those
to the model of end-to- positions in a by the number of (Challenger markets
end processes per country the positions per markets)
country and function. function

Sum:
13.964 FTE 576 FTE 413FTE 148 FTE 265 FTE 148 FTE

51