Current State Assessment

Design of Finance Regional Model
for North America
Analysisof Current State and InitialConsiderations
for theTarget OperatingModel

Process Analysis
Kick Off
W1 W2 W3 W4 W5 W6 W7 W8 W9 W10W0
Mobiliz
e
Target Operating Model Design
Base-lining
Project Management
Implementation Plan
Design
W11 W12
Steering Committee Meeting
September October November
Sep 9 Sep 16 Sep 23 Sep 30 Oct 7 Oct 14 Oct 21 Oct 28 Nov 4 Nov 11 Nov 18 Nov 25 Dec 2
Presentation to XXX Top Management
Validate and
Approve
Implementation
Plan
Unity Process Flows
2010 N.A. Regional Finance
Workshops
• Maple Leaf
• Closing Design/KPIs
Dec
Project Timeline
The project is on schedule and the team has completed planned activities
4
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North America Finance Overview
Source: Finance Process Owners and HR
` BDI ACIST EZEM Total
Revenue (000s) $468,553 $105,237 $102,727 $676,517
FTEs – Legal Entity View
Employees 22.00 8.40 11.00 41.40
Contractors/Consultants 2.20 1.00 1.00 4.20
Outsourcers (UPS) 19.00 - - 19.00
Total 43.20 9.40 12.00 64.60
Adjustments for BDI support of ACIST
Employees (2.14) 2.14 - -
Contractors/Consultants (0.15) 0.15 - -
Outsourcers (UPS) (2.10) 2.10 - -
FTEs – Adjusted View 38.81 13.79 12.00 64.60
North America finance supports $676 million of revenue and performs activities with
64.6 FTEs, which includes19 FTEs from UPS
7Note: The shared CFO for BDI and EZEM is included in the BDI headcount

Adjusted FTEs by Activity Type
Most finance resources in North America are focused on transactional activities, which
reduces the time available for business partnering and decision support
11%
17%
11%
58%
56%
78%
15%
6%
16%
21%
9%
EZEM
ACIST
BDI
Adjusted
FTEs
38.81
13.79
12.0
10Source: Process Allocation Matrix, Team Analysis
2%
FP&A Transactional SpecializedProduct Costing
44% of BDI FTEs (16.9) represent UPS support of transactional work
32% of ACIST FTEs (4.4) represent support by BDI and UPS, primarily for transactional work

Organization Analysis – Legal Entity View
Finance organizations structures in North America have 4 – 5 layers and an average span
of control ranging from 3.0 – 3.7
Number of FTE 43.2 12.0 9.4
# of employees 22.0 11.0 8.4
# of contractors/consultants 2.2 1.0 1.0
# outsourced 19.0 - -
Average Span of Control 3.1 3.0 3.7
Level 1 (CFO) 5.0 4.0
Level 2 2.3 2.0 4.0
Level 3 1.5 3.0 3.0
Level 4 3.5 2.0 -
Level 5 - - N/A
Organization Layers 5 5 4
13Source: Company Organization Charts; The Span of control calculation excludes, contractors, consultants and outsourcing
BDI EZEM ACIST

Next Project Phase
During the next project phase the team will design the North America target operating model
• Proposed operating model for how North America finance activities should be performed
• Recommended organization structure and resource impacts
• Expected impacts and change requirements for the current organization
Deliverables for Target Operating Model Phase
16

Shared FTEs/Activities by Process
Based on an external perspective of additional activities which may be shared, the team will
focus on those areas of highest potential for further consolidation
19Source: Process Allocation Matrix, Team Analysis
Process FTEs Degree of Sharing
1.0 Finance Function Management 2.3
2.1 General Accounting & Reporting 10.2
2.2 Fixed Asset Accounting 0.9
2.3 Accounts Payable 6.2
2.4 Travel & Expense Reimbursements 2.0
2.5. A Order to Cash - AR 16.7
2.5. B Order to Cash - Chargebacks 6.1
2.6 Product Costing and Inventory Acct 3.3
2.7 Payroll 0.9
2.8 Finance Systems and Data Structures 0.4
3.0 FP&A 6.9
4.1 Internal Controls 0.5
4.2 Transfer Pricing 0.3
4.3 Treasury & Cash Management 1.1
4.4 Tax 1.4
4.5 Impairment Test 0.5
4.6 Ad-hoc Projects 2.9
4.7 Support of Other Entities 0.6
5.0 Enterprise Risk Management 0.2
6.0 Other 1.2
Total – All Companies 64.6
Shared between BDI and ACIST Shared between BDI and EZEM External perspective on % of activities which may
be shared (does not always imply co-location)

Case Study – Life Sciences Company
• Performance Reporting
• P&LK Analysis /
Analytics
• Statistics and Modeling
• Planning, Budgeting,
and Forecasting
• Ad hoc Analysis /
Reporting
General Accounting
• Controllership
• Record to Report
• Close /
Consolidation
• SEC / Regulatory
Reporting
Transaction
Processing
• Purchase to Pay
• Order to Cash
• Reconciliations
• Other Rule Based
Processes TBD
• Planning,
Budgeting and
Forecasting
• Performance
Reporting
• P&L Analysis /
Analytics
• Treasury/Cash
Management
• Internal Audit
• Controls
• Tax
• M&A
• Investor
Relations
Vision
Design
Principles
BU / Segment Finance Corporate / Centrally Managed Finance
Decision Support Controller / Shared Services Corporate FP & A Specialized Services
• Partners to the business
• Lean, highly-skilled
decision support focus
• Continue to own the numbers
• Demand management
philosophy
• Partners to BU / Segment Finance and providers of
operational services
• High volume, low cost work in global / regional hubs
where possible
• Economies of scale and low cost locations for routine
processes
• Simplification through global standards in transaction
processing and service delivery
• Portfolio perspective
• Enterprise-wide
analytical review
• Provide framework for
planning and
performance
management
• Highly specialized, lean
organization
• Focus on process
discipline for all of
Finance
Current
FTEs
Target
FTEs
Segments 65%
Segments 30%
Center 35%
Center 70%
A life sciences company developed a global operating model to centralize 70% of finance FTEs
22

1. Executive Summary
2. Analysis of Current State
3. Initial Considerations for the Target Operating Model
4. Next Steps
5. Appendix
Agenda
25

Preliminary Analysis – General Accounting
28
Observations:
• ACIST has a high percentage of manual journal entries, but the entries appear to have a small number of lines per journal entry
• Almost all accruals for each legal entity are manual
Source: Process Owners (KPI Data Request)
Note: Schedule includes some minor differences due to rounding
BDI1
ACIST EZEM2
Total
Revenue (in 000s)3,4
$468,553 $105,237 $102,727 $676,517
% of Total Revenue 69% 16% 15% 100%
GL FTEs by Legal Entity 5.7 1.5 2.8 10.1
Adjustment for Support of Other Entities -0.6 0.6 0.0 0.0
GL FTEs – Adjusted View 5.1 2.1 2.8 10.1
% of Adjusted GL FTEs 51% 21% 28% 100%
Adjusted Headcount per Billion $ of Revenue 10.9 20.0 27.6 14.9
Annual Journal Entries Posted 69,847 47,036 169,828 286,711
Annual Journal Entries Manually Posted 10,736 14,538 26,209 51,483
% of Manual Journal Entries Posted 15% 31% 15% 18%
Annual Journal Entry Lines 327,244 527,181 682,211 1,536,636
Annual Manual Journal Entry Lines 95,212 94,303 84,824 274,339
% of Manual Journal Entry Lines 29% 18% 12% 18%
Annual Accruals 5,843 6,186 11,367 23,396
Annual Manual Accruals 5,352 6,159 11,283 22,794
% of Manual Accruals 91.6% 99.6% 99.3% 97.4%
1 BDI figures include all data for BDI, BRU, BUSA, and EZEM Inc,
2 All EZEM figures (excluding revenue) are annualized for 10/1/2012 to 8/31/2013 based on timing of SAP go-live
3 BDI and ACIST revenues are from 8/1/2012 to 7/31/2013, while EZEM revenues are for the 2012 calendar year
4 EZEM revenue was converted to USD using an average 2012 exchange rate of 1.04 CAD/USD (Source: irs.gov)

Technology by Process
FDQMFDQM
CONCUR
The BridgeThe Bridge
2.1 General Accounting
and Reporting
2.2 Fixed Asset Accounting
2.3 Purchase-to-Pay
2.4 Travel & Expense
Reimbursements
2.5 Order to Cash
SAP, BW, HFM
SAP
SAP
SAP
SAP
SAGE
SAGE
IBIS (PMM)
2.6 Product Costing &
Inventory Accounting
SAP
CONCUR
IBIS (PMM)
BO - JDEBO - JDE
Hyperion Planning
EasyLabourEasyLabour
GISCO
IContracts, BO,CarsnetIContracts, BO,Carsnet
Saleforce.comSaleforce.com
31
Process BDI EZEM ACIST

1
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Current State Assessment