Nadeem Aziz has over 24 years of experience in FP&A roles. He discussed Actavis' organizational lifecycle and the impact of planning during different stages. In the growth stage, planning defined IT needs, established reporting, and introduced strategic planning. In the transition stage after an LBO, planning developed integrated systems and driver-based reporting. In the adaptive stage, planning focused on cash flow forecasting, business factors, and contingency planning. Lessons included developing performance understanding, robust forecasting and reporting, leveraging tools, and focusing on commercial initiatives.

1. Case Study:
Nadeem Aziz

2. Nadeem Aziz -
Formerly Head of Group Planning for 5 Years at
• Over 24 years experience in FP&A roles
• Worked across many industries
Director Director Global
European FP&A Business Analysis
Head Group
Currently Director Internal Audit Financial Planning
MBA, DipM, DMS, ACMA, FCMI, CGMA
2

3. Agenda
1 Introduction
2 Business Planning challenges
3 Understanding Organisational life cycle
4 Who are Actavis – How can it’s experience help planning
5 Impact of Planning on the Life Cycle of Actavis
1) Growth Stage
2) Transition & Consolidation Stage
3) Adapt or Die Stage
6 Lessons for Planning
3 March, 2013

4. Business Planning Challenges
Objective Does the business know where they are going?
Systems Are the systems and tools appropriate to do job?
Process How can management deliver on its objectives?
Output How is business progress tracked and adjusted?
Control Do we trust the management will deliver outcomes?
4

5. Organisational Life cycle
sales
Growth
Time
5

6. Organisational Life cycle
sales
Transition &
Growth Consolidation
Time
6

7. Organisational Life cycle
sales
Transition & Adapt
Growth Consolidation or Die
Time
7

8. Organisational Life cycle
sales
Transition & Adapt
Growth Consolidation or Die
Mgt by
Mgt By Activity Mgt by Objective
Bureaucracy
Time
Guided by Norms & Controlled by
Guided by Instinct
Past Events Systems & process
Emphasis on Emphasis on Emphasis on
Learning Building Maintenance
Entrepreneurial Play to Win Play not to Loose
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9. Who are Actavis?
Role of Planning through the
Actavis organizational life cycle

10. Actavis roots –
Manufactures, distributes, markets & sells generic drugs
Actavis 1956 - 1999
Bangalore, India
• 146 employees
API Development
• Present in 1 country
• EUR 57 million in sales
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11. Actavis strong growth
Driven through Acquisition
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12. Actavis
Current Position Today
Actavis in 2011
Bangalore, India
• A top-5 generic player
API Development
• EUR 1.840 billion estimated sales in 2011
• Present in over 40 countries
• 1100 molecules on the market
• 315 projects in the pipeline
• 719 launches planned for 2011
• 20 billion tablets/capsules manufactured 2011
• Over 10,000 employees
12

13. Actavis
Critical Life Cycle Phases
1 Growth – Managing through Rapid growth
•
2 Transition – Managing through a Leverage Buyout
•
3 Adapt - Managing in Uncertain times
•
3 March, 2013 13

14. Actavis – Background in 2006
Objective System Process Output Control
14

15. Actavis – Background in 2006
Objective System Process Output Control
• No Strategic Plan
in place
• Short term focus
• Little Group
Coordination
• Just get the job
done
15

16. Actavis – Background in 2006
Objective System Process Output Control
• No Strategic Plan • Low systems
in place capabilities
• Short term focus • Knowledge base of
the team low
• Little Group
Coordination • Different system
across the business
• Just get the job
done
16

17. Actavis – Background in 2006
Objective System Process Output Control
• No Strategic Plan • Low systems • Fragmented
in place capabilities
• Little integration
• Short term focus • Knowledge base of between
the team low businesses
• Little Group
Coordination • Different system • All hands to the
across the business pumps
• Just get the job
done
17

18. Actavis – Background in 2006
Objective System Process Output Control
• No Strategic Plan • Low systems • Fragmented • Non Standardised
in place capabilities Reporting
• Little integration
• Short term focus • Knowledge base of between • Backward looking
the team low businesses focus
• Little Group
Coordination • Different system • All hands to the • Policies
across the business pumps Inconsistent
• Just get the job across the Group
done
18

19. Actavis – Background in 2006
Objective System Process Output Control
• No Strategic Plan • Low systems • Fragmented • Non Standardised • Data Quality
in place capabilities Reporting unreliable
• Little integration
• Short term focus • Knowledge base of between • Backward looking • No confidence on
the team low businesses focus trend analysis
• Little Group
Coordination • Different system • All hands to the • Policies
• Do it and figure
across the business pumps Inconsistent
it out later
• Just get the job across the Group
done
19

20. Actavis – Impact of Planning
During the Growth Stage – Time of Rapid Change
• Planning defined the IT functionality needed to service growth and
1 managed the requirements needed to service future enhancements
20

21. Actavis – Impact of Planning
During the Growth Stage – Time of Rapid Change
• Planning defined the IT functionality needed to service growth and
1 managed the requirements needed to service future enhancements
• By establishing comprehensive reporting calendar enabling key processes
2 to be coordinated with management across the company
21

22. Actavis – Impact of Planning
During the Growth Stage – Time of Rapid Change
• Planning defined the IT functionality needed to service growth and
1 managed the requirements needed to service future enhancements
• By establishing comprehensive reporting calendar enabling key processes
2 to be coordinated with management across the company
• Establish a common language and developed policies and definitions so
3 that comparatives would be more meaningful
22

23. Actavis – Impact of Planning
During the Growth Stage – Time of Rapid Change
• Planning defined the IT functionality needed to service growth and
1 managed the requirements needed to service future enhancements
• By establishing comprehensive reporting calendar enabling key processes
2 to be coordinated with management across the company
• Establish a common language and developed policies and definitions so
3 that comparatives would be more meaningful
1) Quality and reliability of reporting enhanced establish monthly
4 management reporting and quarterly forecasting
23

24. Actavis – Impact of Planning
During the Growth Stage – Time of Rapid Change
• Planning defined the IT functionality needed to service growth and
1 managed the requirements needed to service future enhancements
• By establishing comprehensive reporting calendar enabling key processes
2 to be coordinated with management across the company
• Establish a common language and developed policies and definitions so
3 that comparatives would be more meaningful
1) Quality and reliability of reporting enhanced establish monthly
4 management reporting and quarterly forecasting
1) Strategic planning disciplines introduced to
5 support investment prioritisation decisions.
24

25. Actavis – Impact of Planning
During the Growth Stage – Time of Rapid Change
• Planning defined the IT functionality needed to service growth and
1 managed the requirements needed to service future enhancements
• By establishing comprehensive reporting calendar enabling key processes
2 to be coordinated with management across the company
• Establish a common language and developed policies and definitions so
3 that comparatives would be more meaningful
1) Quality and reliability of reporting enhanced establish monthly
4 management reporting and quarterly forecasting
1) Strategic planning disciplines introduced to
5 support investment prioritisation decisions.
1) Built capability of the Financial planning team
6 establish feedback loop to enhance future processes
25

26. Actavis – Impact of Planning
Transition Stage: Following Leverage Buyout
• Developed integration financial systems across the group
1 leveraging Local ERPs and Data Warehouse functionality
26

27. Actavis – Impact of Planning
Transition Stage: Following Leverage Buyout
• Developed integration financial systems across the group
1 leveraging Local ERPs and Data Warehouse functionality
• Supporting quarterly business reviews with dynamic reporting
2 through standard system generated reports in Cognos
27

28. Actavis – Impact of Planning
Transition Stage: Following Leverage Buyout
• Developed integration financial systems across the group
1 leveraging Local ERPs and Data Warehouse functionality
• Supporting quarterly business reviews with dynamic reporting
2 through standard system generated reports in Cognos
• More forward looking trend base analysis developed, more
3 robust forecasting 3YP and Budget process integrated
28

29. Actavis – Impact of Planning
Transition Stage: Following Leverage Buyout
• Developed integration financial systems across the group
1 leveraging Local ERPs and Data Warehouse functionality
• Supporting quarterly business reviews with dynamic reporting
2 through standard system generated reports in Cognos
• More forward looking trend base analysis developed, more
3 robust forecasting 3YP and Budget process integrated
1) Driver based consolidation of business commentaries
4 giving greater visibility to business variances
29

30. Actavis – Impact of Planning
Transition Stage: Following Leverage Buyout
• Developed integration financial systems across the group
1 leveraging Local ERPs and Data Warehouse functionality
• Supporting quarterly business reviews with dynamic reporting
2 through standard system generated reports in Cognos
• More forward looking trend base analysis developed, more
3 robust forecasting 3YP and Budget process integrated
1) Drive based consolidation of business commentaries
4 giving greater visibility business variances
1) Greater focus on risk and opportunity planning and
5 reporting to external investors
30

31. Actavis – Impact of Planning
Transition Stage: Following Leverage Buyout
• Developed integration financial systems across the group
1 leveraging Local ERPs and Data Warehouse functionality
• Supporting quarterly business reviews with dynamic reporting
2 through standard system generated reports in Cognos
• More forward looking Trend base analysis developed, more
3 robust forecasting 3YP and Budget process integrated
1) Drive based consolidation of business commentaries
4 giving greater visibility business variances
1) Greater focus on risk and opportunity planning and
5 reporting to external investors
1) Building business partner relationship by engaging
6 strategic projects and business modelling.
31

32. Actavis – Impact of Planning
Adaptive Stage: Managing in Uncertain Times
• Greater focus on Cashflow forecasting and
1 alignment with Treasury
32

33. Actavis – Impact of Planning
Adaptive Stage: Managing in Uncertain Times
• Greater focus on Cashflow forecasting and
1 alignment with Treasury
1) Drive focus on critical business success factors
2 developing greater business alignment -
Price Erosion, Material & expense savings and driving new products.
33

34. Actavis – Impact of Planning
Adaptive Stage: Managing in Uncertain Times
• Greater focus on Cashflow forecasting and
1 alignment with Treasury
1) Drive focus on critical business success factors
2 developing greater business alignment -
Price Erosion, Material & expense savings and driving new products.
3
• Actively manage external
investor relationships and Debt
Restructuring
34

35. Actavis – Impact of Planning
Adaptive Stage: Managing in Uncertain Times
• Greater focus on Cashflow forecasting and
1 alignment with Treasury
1) Drive focus on critical business success factors
2 developing greater business alignment -
Price Erosion, Material & expense savings and driving new products.
3
• Actively manage external
investor relationships and Debt
Restructuring
• Contingency Planning greater
4 focus on Investment tracking
35

36. Lessons for Planning
Strategic Analyse
Alignment Performance
Deliver
Commercial
Value
36

37. Lessons for Planning
Develop a deeper understanding of
performance
Strategic Analyse
Alignment Performance
Deliver
Commercial
Value
37

38. Lessons for Planning
Develop a deeper understanding of
performance
Strategic Analyse
Alignment Performance
Robust Forecasting, Budgeting & Reporting
to ensure effective decision support
Deliver
Commercial
Value
38

39. Lessons for Planning
Develop a deeper understanding of
performance
Strategic Analyse
Alignment Performance
Robust Forecasting, Budgeting & Reporting
to ensure effective decision support
Deliver
Commercial Leverage tools & resources to drive greater
Value & more efficient analytical insight
39

40. Lessons for Planning
Develop a deeper understanding of
performance
Strategic Analyse
Alignment Performance
Robust Forecasting, Budgeting & Reporting
to ensure effective decision support
Deliver
Commercial Leverage tools & resources to drive greater
Value & more efficient analytical insight
Work on critical commercial initiatives to
ensure delivery of target performance
40

41. Rebirth & Grow…..Actavis 2013
Here we go again ……!!!!!
41

42. Thank you!