【正文】 of value ?Develop anization strategy amp。D — Others to be identified ? Eliminate/minimize sources of risk ?Drive the shortterm value ?Exceed the market’s expectations MI Sources of Value Achieve Growth Synergy and Cost Synergy Targets as Quickly as Possible . Kearney 4/1375C/Merger Integration 1083 19 _Macros 18 The program structure supports focused value capture teams working across all SBU/Geographic teams Illustrative Integration Office Others Steering Committee Business Development Team Corporate Center Team Global Operations Team Global Sourcing Team Technology/ Ramp。 adherence facilitates a fair and robust decision making process Project Risk Prioritization Risk Identification Risk Categorization Project Prioritization — Business Criticality And Size Business Criticality — how much does it matter if the project does not meet its objective? ?A = Incremental benefit but current processes will suffice ?B = Supports strategy but manageable impact if project fails/delayed ?C = Important to the strategy with significant impact if project fails/delayed ?D = Critical impact/must keep up with petitors/cannot continue business Complexity High Low High D C B A A B C D Business Criticality Project 2 Project 3 Project 6 Project 1 Project 4 Project 5 R e f Proj e c t Are a Pre m i l est oneM i l e st onePost m i l est one1 Da t a c onve rsi on proc e ss2 Da t a vol um e s/ si z i n g3 Ope ra t i o ns c ha nge s4 Syst e m s c ha nge s5 T e st pl a ns/ t e st e xe c ut i on6 C ont i nge nc y pl a ns7 St a ffi ng a nd re sourc e s8 C ont rol s a nd st a nda rds9 M e t ri c s a nd be nc hm a rki ng10 T ra i ni ng / e duc a t i on11 C ross proj e c t c om m uni c a t i ons12 C ust om e r i m pa c t13 Probl e m re port i ng/ e sc a l a t i onMany issues are closed by making assumptions Risks Assumptions Issues Project Plans Risk Plans Issues are open questions Unstable/sensitive assumptions create risks Significant risks need to be managed Issues, Assumptions And Risks Are Inherent In The Project Plans Risk Reduction Red Amber Green Merger Risk Profile Now Future Green Amber Red Time Criticality Illustrative Challenges Decision Making Planning/ Execution Reporting Benefits of Proactive Risk Management ? Cross anizational input and dedicated facilitation ensures objective input ? Milestone risks associated with decision timing are derived from processwide initiatives ? Risk process highlights resource vulnerabilities. Sense of urgency associated with the process forces discussions and actions ? Proactive management and facilitation objectively evaluates all munication risks. Forum offers participants a chance to agree or disagree ? Concise updates focused on crossanizational risks direct attention where it is needed ? Clear assignment of risk ownership and action responsibilities eliminate confusion . Kearney 4/1375C/Merger Integration 1083 19 _Macros 24 Realizing Integration Synergies . Kearney 4/1375C/Merger Integration 1083 19 _Macros 25 To assess and achieve their synergies, all teams can leverage a number of . Kearney’s proven methodologies and tools as appropriate Streamlining the Organization Reducing Purchased Costs Objectives: Focus Areas: Methodology and Tools ?Determine management and governance structure ?Integrate offices ?Align HR policies and procedures ?Finance / Accounting ?Legal / Regulatory ?IT ?HR ?Corporate Center Rationalization ?Leverage corporate spend ?Leverage purchasing volumes ?Direct materials ?Purchased services ?Indirect materials ?Capital expenditures ?Strategic Sourcing ?ESourcing (eBreviate) ?Market exchange strategy (LSN) Supporting Methodologies and Tools Increasing Sales Force Effectiveness ?Increase revenue productivity of sales force ?Increase knowledge and valueadded selling capabilities ?Explore channel leverage (., Dealer /Reseller work) ?Sales force effectiveness ?Crossselling ?Sales Force Effectiveness Methodology ?Customer Retention Methodology Illustrative Leveraging Assets ?Maximize asset utilization ?Bottling plant consolidation ?Warehouse consolidation ?Realize work synergies ?Fixed assets ?Capital expenditures ?Inventory ?Procurement ?Supply Chain Transformation ?Operating Asset Effectiveness Streamlining Product Portfolios and Networks ?Rationalize product offering and customer base ?Evaluate and implement optimal work strategy ?Product Offering ?Customer requirements ?Network cost and capacity ?Product Portfolio and Network Rationalization Methodology ?Operating Networks Integration . Kearney 4/1375C/Merger Integration 1083 19 _Macros 26 Rapid benefit delivery is feasible through integrating the operating work Manufacturing Capabilities ? What can be produced ? Where ? How does throughput vary by location and plant capability ? What are the capacity constraints Network Configuration ? Which are the costs of transportation, handling and inventory ? Which is the most cost efficient work configuration ? Are there cost synergies with other Dannon products Manufacturing Capabilities Network Configuration Several Iterations Local Market Requirements ? What are the market requirements ? What is the current/future petitive positioning ? What distribution channels are growing fastest Market Requirements 1 . Kearney 6/Document/. SKU tree 1 SKU 2 SK