Agenda

1 About Takeda

2 Project Background

3 Project Approach

4 Proof of Concept (PoC) – Use Cases Functionality

5 Closing / Q&A

1 ｜2016.10　|　　Central Finance – A deployment option for Simple Finance

About Takeda - An R&D driven pharmaceutical company with global presence

2 ｜ 2016.10　|　　Central Finance – A deployment option for Simple Finance

About Takeda – A success story with a strong heritage

Start-up: The
pharmacist Morten
Nyegaard started
importing drugs to Production: The start
Norway. Nyegaard & of our own production
of pharmaceutical Research:
Co. changes its name Started our own
to Nycomed in 1986 products, included the
success Globoid pharmaceutical
Sales: Nycomed
research acquired by
Nordic Capital
1874
1913
1925 Takeover:
1999
2011 Takeda
Pharmaceutical
2008 Company buys
Nycomed
1962-1997
1914
Takeda acquires
1781 Millennium
Takeda expands its Pharmaceuticals
overseas operations forming Takeda‘s
Research activities wholly owned
begin with into Asia, the U.S.
Takeda founded by oncology company
establishment of a and Europe
Chobei Takeda in
Japan research division

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About Takeda – Leading OTC in Norway

40 OTC-drugs and 80 commodities sold under the Nycomed-brand

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Project Background – SAP ERP Coverage

RU
CA SE FI
NO
EE
DK LV
LT
IE GB DE PL
CZ SK UA KZ
ATHU
FR CH SI RO
US HR KR JP
PT ES IT
TR CN

EG AE
MX IN

TH

PH
VE
CO MY

EC ID

BR
PE

ZA
AU
AR

Planned SAP

US and JP SAP

ROW SAP

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Project Background - ERP, BI, HANA evolution towards 2020

1 Several ERP 2 Consolidate 3 NextGen

systems ERP ERP

US
ROW
JP

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Project Background - Decision support layer streamlined by Central Finance

2 PDW will be replaced Group Consolidation Layer 3 As part of Central

Finance vision, we will
once global D-COGS TAK
review consolidation
information is derived and HFM/HTP as a final
Cost
from the transaction step to achieve a fully
by Function
layer. This will reduce
Broken down by: streamlined solution.
reconciliation between •  Personnel
SAP and PDW, reduce •  Non-Personnel
manual maintenance •  D&A
and better meet
internal and external PDW HFM / HTP
auditor requirement.
Decision Support Layer
Divisional
Summary Project/
Summary
CoA
1 Central Finance will by Nature
CC Product
codes
establish the decision
support layer, first. ERP/Transactional Layer
This is quick win. This
will simplify manual CoA by Individual Individual Project/
mapping and Nature CC Product codes
maintenance efforts
which currently cause
permanent
reconciliation work US JP ROW Others
and differences.

Financial Master Data Management

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Project Background - Executive Summary

Problem Statement
Finance Repor,ng Solu,on at Takeda today is fragmented with mul,ple systems and inconsistent user
experiences. There is a need to create a single source of truth for all Financial /Controlling data and
enable real-,me insights to ensure flexibility, agility, and beCer decision making capabili,es.

Improve Reporting Accelerate

Significantly Improve the overall Increase flexibility, speed of
finance repor@ng capabili@es repor@ng, and accelerate
including dashboards for strategic, financial close through real-@me
management, and opera@onal KPI’s. insights into integrated financial
and controlling data globally
OBJECTIVES:
Create a POC of Central
Finance to create a single
repository of all Financial data
RIVALRY
and enable centralized
Management, Opera@onal,
and Transac@onal Financial
repor@ng.
Simplify Improve Agility
Simplify the technology landscape Improve agility and minimize
with consistent user experiences risk by providing a solu@on for
and improved TCO quick on-boarding of future
acquisi@ons

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Project Background - Current vs Future State

Current State Central Finance

Central Finance

Highest Speed Single Source Reporting & Modern User

Granularity of Truth Analysis Experience
Manual effort •  Line item based •  Up to 1’800x faster •  One source for •  P&L by •  Availability on
and extensible than SAP BI financial and Management Units multiple devices
•  Not limited by •  Accelerated management •  Brand P&L by
totals or pre- financial close accounting Branch/SKU
configuration •  Real-time •  Real-time reporting •  Product Profitability
Manual work after the processes and without replications with P&L
simulations •  Any Currency
period end close to Views
combine data with high
reconciliation effort No manual work after the period end close to combine data. Automatic reconciliation.

Very successful Proof of Concept performed using real time Takeda data

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Project Approach - Simple Finance Deployment scenarios

ERP Migration to Simple Finance Central Finance on Premise Central Finance On Cloud

SAP and
non-SAP ERP SAP and
non-SAP ERP

Central Finance On Cloud

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Project Approach – Proof of Concept for Central Finance

Master Data
Central Finance is a deployment scenario of Governance
Simple Finance powered by SAP HANA which
allows to create a flexible common reporting
structure without disruption to our current
diverse system landscape.

R/3 4.6C+ Central Business Error

Database trig Finance mapping correcBon
SAP Fin. ger SAP Landscape accounBng and
Docs TransformaBon interface suspense
(SLT) ReplicaBon
Server
SAP Simple Finance Internal
Add-On accounBng
interface
Non-SAP
ERP
Non SAP
HANA
Fin. Docs
Central
Journal
entry

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Project Approach – Decision on Organizational restructuring

Universal Journal: Single Source of Truth What-if scenarios /

Organizational restructuring (start afresh?)

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Project Approach - Central Finance Use Cases

Takeda proof of concept

Central Journal and central repor@ng
Central financial planning Relevant to Takeda.

Central open items management

Not Relevant to Takeda.
Central payments

Central intercompany reconcilia@on

Central bank account management

Central Cash Opera@ons , treasury & risk mgmt.

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Project Approach - Takeda PoC Project Vision

Reporting and Integrated Treasury and Cash

Foundation Consolidation
Dashboards Planning Management

Time

SAP S/4HANA
Reduction in batch
embedded Integrated
close processes,
analytics suite that platform for
processes
enables business multiple planning
Technology designed for
users, business types
Platform real-time
analysts to
operations, and Regional and
perform real time Takes existing
Central journal: availability Global
operational pockets of
Single Source of of reporting on Cash Pooling
reporting on live excellence
Truth for demand enables Predictive
transactional data. and creates a
management, transition to a Analytics
Minimizes regionally
profitability and continuous
reconciliation and locally
legal reporting (soft) close
issues and manual harmonized
Business
effort to produce planning process
Performance
Management and platform
Dashboards
Reporting

Current Proof of Concept

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Project Approach - Program Structure

Executive Steering Committee & Sponsor

CIO, CFO’s

Operational Steering Committee Supporting Functions

Program managers, PMO, Compliance, SDLC
Key business and IT stakeholders

Business & IS/IT Program Manager + Integration Lead

Finance
Change, Corporate Global BUs Regional Finance System
System Data Technical
Governance Workstream Workstream Workstream Operations Integration
Quality

Change Capability Capability Capability Capability Lumira SAP Basis

Functional Owner – Functional Owner Functional Functional Data QA and Data
Mgmt. & Governance Owner BU Owner Dashboard Architect &
SME Global SME Regional SME SME Migration Test Integration
Comms KPI’s KPI’s KPI’s Consolidation Solution Consulting

sFin
Training TM1 SME Security Network
Solutions

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Project Approach - Takeda PoC Detailed Plan

PoC Initialization Design Implementation Acceptance

and Scoping and Closing

- Define Project Aims - Mapping of Business - Feed System with data - Perform Demo tests
- Define Project Team requirements - Set up business - Prepare PoC Mgmt
- Prepare Project Charter - Prepare blueprint and processes and reports closing report
- Perform Scoping technical specificaBon - Set up mapping rules - Prepare presentaBon of
AcBviBes Workshops
- DefiniBon of Proof Points
according to PoC objecBves according to data Lessons Learned
- Establish data harmonizaBon concept
for PoC
- Perform High Level efforts
harmonizaBon concept - Perform unit tests
esBmaBon for PoC - Design testcases - Perform integraBon tests
- Order and setup technical
infrastructure (systems & SLT)

- Project Mgmt Plan

- Integrated technical System - FuncBoning PoC landscape - Demo Test Scenarios
- Agreed Scope & Landscape - Data feed (creaBon/ - Project Mgmt Closing
Technical deployment - Blueprint Document replicaBon) Report
- High Level efforts Technical SpecificaBon - Unit test scenarios - Lessons Learned
Deliverables esBmated according to - DescripBon of Test cases/ - IntegraBon test scenarios
agreed scope proof Points
- Data harmonizaBon
Concept

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Project Approach - PoC - Takeda Business Benefit Examples

Accounting Global Local Analysis

•  Recalculation in any
currency •  Global structures and •  Differences to the •  Reports per MU,
mappings global statements can Countries, Regions,
•  Parallel statements be setup Entities , Functional
Areas, HFM accounts
•  Document split •  Global overview cross entities, by slice
•  Actual accounting, and dice functionality
•  Tracking of accruals product profitability
also on the balance •  Accelerated availability and planning
sheet of the connected •  KPI visualization
instances and
•  Product profitability
•  Real time data utilization of the new •  Real time data
functionalities •  Planning
•  No reconciliation effort
required

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PoC Functionality - User Experience

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PoC Functionality – Fiori Applications

Accounting Accounts Payable Accounts Receivable Cash Collection G/L

Information Accountant Accountant Manager Specialist Accountant
for Managers Controller

My Spend Manage Payment Blocks Post Incoming Payments Manage Bank Accounts Process Display G/L Account Activity Type
My Unusual Items Manage Vendor Line Process Collections Make Bank Transfers Collections Balances Controlling Document
Track Supplier Items Worklist Approve Bank Worklist
Post General Journal Cost Center
Invoices Display Vendor Balances Manage Dispute Cases Payments Manage Entries
Dispute Cost Center Group
My Projects Create Manual Payment Process Receivables Analyze Payment Manage Journal Entries
Details Cases Internal Order
Correction Request Schedule Payment Display Customer Display G/L Account Line
Proposals Balances Cash Position Details Items Profit Center
Manage Budget
Revise Payment Manage Customer Line Track Bank Transfers Display Chart of Accounts Statistical Key Figure
Margin Analysis Cost
Proposals Items Manage House Banks Display Financial Statement Cost Centers - Actuals
Net Margin Analysis Manager
Clear Outgoing Create Correspondence Bank Risk Open Posting Periods Cost Centers - Plan/Actual
Profit Analysis
Payments Clear Incoming Cost Centers - Plan/Actual YTD
Working Capital Bank Statement Monitor Manage Profit Center
Future Payables Payments My Unusual Master Data Cost Centers - Plan/Actual with Currency Translation
Analytics - DPO Cash Flow Analysis Items
Analysis Overdue Payables Collection Progress Manage Cost Center Internal Orders - Actuals
Cash Position
Cash Discount Forecast Credit Limit Utilization My Spend Master Data
Working Capital Deficit Cash Pool Internal Orders - Plan/Actual
Analytics - DSO Cash Discount Utilization Days Beyond Terms My Projects Manage Depreciation Runs
Liquidity Forecast Internal Orders - Plan/Actual YTD
Analysis Aging Analysis Days Sales Outstanding Correction G/L Account
Payment Statistics Internal Orders - Plan/Actual with Currency Translation
Request
Invoice Processing Time Dunning Level G/L Accounting Document Market Segments - Actuals
Bank Manage
Days Payable Distribution Fixed Asset
House Bank Budget Market Segments - Plan/Actual
Outstanding Analysis Future Receivables Manage G/L Account
House Bank Account Market Segments - Plan/Actual YTD
Vendor Payment Open Disputes Master Data
My Bank Account Market Segments - Plan/Actual with Currency Translation
Analysis (Manual and Overdue Receivables Manage Profit Center
Automatic Payments) Worklist P&L - Actuals
Asset Promises To Pay Groups
Accountant Vendor Payment Maintain Signatory P&L - Plan/Actual
Total Receivables Sales Manage Cost Center
Analysis (Open Initiate Review Process Manager Groups P&L - Plan/Actual YTD
Payments) Customer Accounting
Document Monitor Review Status Manage Activity Type P&L - Plan/Actual with Currency Translation
Manage Vendor Accounting
Depreciation My Sent Requests Master Data Profit Centers - Actuals
Document Track
Runs Cash Flow - Detailed Supplier Manage Activity Type Profit Centers - Plan/Actual
Fixed Asset Analysis Invoices Groups
Profit Centers - Plan/Actual YTD
Liquidity Plans Manage Internal Order Profit Centers - Plan/Actual with Currency Translation
Master Data
Develop Liquidity Plans CFO Projects - Actuals
Manage Internal Order
Revenue Projects - Plan/Actual
Groups
Net Sales Projects - Plan/Actual YTD
Journal Entry Analyzer
Gross-to-Net Projects - Plan/Actual with Currency Translation
Sales Journal Entry History

Gross Profit Trial Balance

Color Code
Margin
Transactional App Analytical App Fact Sheet FPM/WebDynpro Design Studio Net Profit
Margin

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PoC Functionality – Integrated Business Planning for Finance (IBPF) Architecture

-IBPF is deployed directly

on the embedded BW of the
S/4 HANA system.

- No data replication.

- Allows SAP BPC to be

able to access real time
master data and actuals
maintained in S/4 HANA.

- Plans developed in SAP

BPC accessible in S/4 HANA
for variance analysis.

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PoC Functionality - IBPF – Delivered Content

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Closing - Future PoC? - SAP Cash Management powered by SAP
HANA

Analyzing global bank balances and

cash posi@ons based on data from
SAP and non-SAP systems

Integrated liquidity forecas@ng including
cash flow analysis using mul@
dimensional real-@me analy@cs

Central Bank Account Management

including overdraV limit analysis, bank
risk analysis, signatory management
and workflow support

Smart Business for Cash Managers, a

cockpit to monitor cri@cal KPI’s, also
on a mobile device

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Closing - Future PoC? - Consolidation

2016.10　|　　Central Finance – A deployment option for Simple Finance

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We are inspired and motivated by our patients…

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