Executing 2017 targets

What is GIO ambition by 2020?
Reduction of the opex by 20%
Reduction of the cost of good sold by 20%
Increase of the volume by 20%
Reduction of the cost per dose sold by 20%
What is included in the recoveries?
Production employment costs
R&D costs
Scale up costs (Indus)
Write-offs
Raw Material
What costs are NOT included in the Opex?
Employment costs
Scale up costs (Indus)
Energy costs
Raw material costs
What do Conversion costs represent?
All Opex
Capex
Used capacity costs
Raw material
Which activities lead to idle costs?
Remediation, eg ‘stop & fix’
Site Ramp-up
Significant decline in volume
What is the financial impact of having idle costs?
It increases the value of inventory
It is charged to the P&L of this year
It is charged to the P&L of next year
What is 2017 target in terms of write-offs (% of production value)?
10%
14%
17%
20%
What is the purchase price variance?
The difference between standard price and average price
The difference between standard price and actual price
The difference between actual price and last year price
What is the financial impact of deferring variances to next year?
It impacts the P&L but not the inventory value
It impacts both P&L and inventory value
What is the difference between SPC and COGS?
The COGS is always higher than the SPC
COGS includes a market adjustment and 5% write-offs
SPC includes Write-offs
Where are we NOT going to see the impact of the new SPC calculation in 2018?
In Recoveries
In Total Opex
In Process Order Variance
In write-offs
In Purchase Price Variance
In deferrals
In SPC vs COGS
What are the “others” costs made of?
Royalties
Asset impairment
DT benefit to non core
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