1. Driving Strategic Value through
Automation and Collaboration
Al Barbee Sean McDermott
NA Finance Director, GSK Manager, North America Accounts Payable, GSK

2. • What’s new and exciting with GSK
• Anti-doping laboratory for the 2012 Olympics in London!
• Latest news on world health care front?
• GSK’s significant commitment to work on neglected tropical
diseases in developing countries!
• Did you know…
• Advair – top selling GSK pharmaceutical product!
• Sensodyne / Aquafresh – top selling GSK oral care products!

3. Agenda
• GSK– Who We Are
• Strategic Priorities
• Case for Change
• Success to Date
• Key Learnings
• Questions

4. GlaxoSmithKline
• World leading research-based pharmaceutical
and healthcare companies
• Leading the way in Consumer Healthcare
for our OTC, oral care and nutritionals products
• 2010 total company sales £28.4bn (~$45bn)
• Emerging Markets: 24% of total GSK turnover
• One of the largest development pipelines in the industry
with approximately 30 late-stage assets*
Our Mission
To improve the quality of human life
domore
feelbetter
* As of March 2011 livelonger

5. GlaxoSmithKline – The Global Company
96,500 employees in over 100 countries

6. NA – CBS Finance Group
• Delivers services to 95% of GSK
business in North America
• Processes include:
• Procure to Pay
• Accounts Payable
• Travel & Expense
• Record to Report
• General Accounting
• Fixed Assets
• Outsourced processing to BPO (India)
• Procurement under CBS and partners with finance

7. Strategic Priorities
External Internal
Our business is focused around the delivery of three strategic priorities, which aim
to increase growth, reduce risk and improve our long term financial performance

8. GSK Structure
CBS
Finance HR Procure-
ment
Real IT
Estate
R
E
North Europe Asia
G
I
America Pacific
O
N
A
L Business Service Centers
G
L
O
B Business Process Outsourcing
A
L

9. Benchmarks Invoice Volume ~ 500k
CBS
P2P Benchmarks (BPO)
NA SFS
(15)
87% 95% 95%
E-invoicing %
Accounts Payable Manager
NA UK
(1)
17.5K 19K inv
Productivity per FTE ~ 5-7 K
GENPACT Accounts Payable
Accounts Payable Retained
to pa.
(51) (3) UK NA
% First pass yield 69% 74% 95%
E-invoicing Team (6)
NA UK
Invoice Processing (31)
PO compliance % 84 % 98%
Customer Inquiry (10) UK & NA
Banking/ Credit Recovery/ P-card
(10) Best in Class Benchmark GSK

10. The Case for Change
• Challenge
• Invoice mix consisted of half paper and half electronic. Processing cost of paper
significantly more expensive. Expansion of existing electronic solution not cost
effective. BPO solution required document conversion of paper to electronic image
• Solution
• Automate invoice processing and increase PO usage
• Why Ariba:
• 60% Match on Suppliers that made up 80% of existing paper volumes
• GSK already using Ariba Buyer module for Purchase Orders
• Integration with JDE (E1) System (one pipeline forward)
• Flexibility of submission option for suppliers (PO flip, EDI/CXML and CSV)

11. AP Processing – Moving Beyond EDI
Need solution to address paper invoice vendors
EDI – 52%
240K invoices/year Paper 48%, 220K invoices / year
Almost maximized Very long tail of paper invoice vendors
Paper Ariba To improve AP productivity
Per invoice cost to process (SFS only) $4.47 $1.72
Avg Time to receive invoices in AP ~ 21 days ~ 2 days • Need to improve efficiency &
effectiveness of paper invoice process
AP Cycle time ~ 11 days ~ 7 days
Payment within Terms (2010 average) ~ 70% ~ 94%
Big Opportunity
* Based on data of last 15 months

12. Success to Date
Paper vs. Ariba Inflows Total e-invoicing Penetration
Paper Ariba e-Invoices EDI % Total e-Invoices
20,000 100%
18,000 90%
16,000 80%
14,000 70%
12,000 60%
10,000 50%
8,000 40%
6,000 30%
4,000 20%
2,000 10%
0%
0
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Feb-11
Mar-11
Jan-11
Jun-11
Jan-12
Oct-10
Apr-11
Oct-11
Aug-10
Sep-10
May-11
Jul-11
Aug-11
Sep-11
Nov-10
Dec-10
Nov-11
Dec-11
Jul-11
1500+ suppliers enrolled in 9 months; Net Ariba inflows outstrip Paper inflows in May ’11

13. Invoice Inflow Analysis
Success to Date Paper Invoice Ariba Invoice EDI Invoice
POT Trend
100
93 93 94 93 93 93
95 91 92 92 63%
90 90 90 17%
90
85
20%
80
75
70
65 9%
60
55 21%
50
70%
Dec'09 Dec'10 Jan'11 Jun'11 Jul'11 Aug'11 Sep'11 Oct'11 Nov'11 Dec'11 Jan'12 12-Feb
Paper EDI Ariba POT Over All Target
Electronic Non-PO online PO Flip

14. Benefits Delivered
• Major contribution to 20% savings goal in GSK shared
financial services
• Vendor Portal (self service) – call/query reduction by 30%
• Improved Paid-on-Time vs. paper
• Faster new supplier implementation at lower cost
Next Steps:
• Evaluate remaining paper invoices:
• Supplier noncompliant (working with Procurement)
• Move expense to alternative solution (i.e. Pcard)
• Decision to continue image process “as is”
or look at alternative scanning solutions

15. Lessons Learned – Key Takeaways
Lessons Learned Takeaways
• Data collection needs to • Strong communications
start prior to initiative
• Internal/External
• Continue change • Dedicated team to deliver
management
communication process • Paper rejection process
after Go Live for “enabled suppliers”
• Manage of high volume • New supplier on-boarding
suppliers (EDI/CXML) takes needs to included
longer on-boarding process E-invoicing process

16. domore
feelbetter
livelonger