CIPS President Mission 2013 CIPS Branch Meeting Southampton

CIPS President – Mission 2013 CIPS Branch Meeting Southampton 14 th March 2013 Leading global excellence in procurement and supply

Who is Paula Gildert? 1990’s 1980’s Getting Qualified • Physics Degree • ICI – Chartered Engineer • Open Windows in Engineering • Young Engineer for Britain • Met Steve at Manchester University ‘ 82 married ‘ 87 Getting Going • ICI / Zeneca • Production Manager • BPR Leader • Supply Chain Manager • Fellow RSA • Starbucks Cool Coaching Project Leader • Chair PTA / Chair School Governors • Natalie 90, Naomi 94 2000’s Keeping Going • Astra. Zeneca • Director Outsourcing • Head UK Purchasing • Global Procurement Transformation Programme Leader • Head R&D Procurement • CIPS Member / Fellow • Natalie to University ‘ 09 2010’s What next? • Novartis • Head Development Strategic Sourcing • Chair / President CIPS • CIPS Modernisation Project Sponsor • Numi to University ‘ 12 Leading global excellence in procurement and supply

What do I want to achieve as President? • Raise Awareness & Profile of Procurement & Supply Chain as a Profession • Build responsibility for Leadership & Legacy in our Community of Practice Leading global excellence in procurement and supply

What do I want to achieve as President? • Promote & Develop our Value proposition – a new winning strategy that goes beyond savings Leading global excellence in procurement and supply

An Example Novartis Pharma - Development Gen Meds Cost Reduction Performance Savings $m 7% 144 96 2010 2011 10% 1209% 2012 Target 127 9% 2013 Leading global excellence in procurement and supply

What does Value Beyond Savings look like? Cost Corporate responsibility Innovation & Insight Continuous Improvement Assurance of supply & risk mitigation Quality & Service Leading global excellence in procurement and supply

DSS – 2012 Executive Summary Dashboard Ahead of run rate/target 70 -90% of run rate/target 90 -100% rate/target 2012 Sourcing Productivity Savings Productivity Measure YTD Target <70% of run rate/target Development Gen. Med Dec 2012 YTD: USD 120 m Status Savings Spend* Savings %* LO 2012 *based on succeed actuals e. Auction Spend (w/Projections), $M e. ROI Measure YTD / Target / LO Status Cost savings Other Development Cost savings Other Novartis Div Cost Avoidance TPC reduction 7 | Development Strategic Sourcing| Pharma Dev| Dec 2012 | Sourcing Productivity | Business Use Only

DSS - BSC 2012 Executive Summary Ahead of run rate/target 90 -100% rate/target 70 -90% of run rate/target People Measure Actual <70% of run rate/target Internal Processes Target Status Measure Status *portfolio / portfolio enabling: Oct 2012 data * May 2012 DSS pulse check survey results Customer Actual Satisfaction* * July 2012 DSS customer survey. 8 Target Focus on Core Activities* Satisfaction* Measure Actual Targ et Suppliers Status Baseline Measure YTD Target Status Satisfaction* Baseline Quality – actions complete Baseline Study Performance Baseline | Development Strategic Sourcing| Pharma Dev| Dec 2012 | Sourcing Productivity | Business Use Only

Development Productivity 2009 -2012 $1 bn in Productivity gains & $900 m in Reinvestments In USD$Mio @ Budget 2012 rates Total Reinvestment $900 m Productivity delivery Key Drivers of Success: ØEmbedding productivity in objectives & intro of KPIs ØClinical savings through Design Excellence & use of preferred providers & partners ØTRD transformation of clinical supply chain and capacity utilization and process optimization initiatives ØBetter Development and Productivity Mindset Actual 2009 Actual 2010 Actual 2011 9 | 2012 Update | Neil Johnston | Jan 2013 | Confidential Actual 2012 Ø Reinvestments to address increased volume needs: Ø Reinvestments into projects above what was expected in budget ØReinvestments into new innovations ØOther reinvestments ØFinancial risk management

Development Productivity 2012 Enabling reinvestment in the pipeline, building capabilities and improving Pharma bottom line Example 1 Dev Proj 1 Project 2 Example 2 10 | 2012 Update | Neil Johnston | Jan 2013 | Confidential Dev Project 2 etc. . Project 3

Leading global excellence in procurement and supply

Thought 12

How does CIPS make this a real possibility? • Building the Brand on a Global stage • Building Global Standard • Building a Global Network Leading global excellence in procurement and supply

Strategic Themes FY 14 + Public Good Leading the Global Standard Membership Transformation Knowledge Leadership Global Reach Sustainable growth in Corporate Customers Leading global excellence in procurement and supply

CIPS – the vital statistics • Global Community of over 88, 000 in 150 countries • Offices in South Africa, Australia, the Middle East, the UK, and setting up in China • Over 130, 000 education assessments conducted in 2011 • 8. 7 million page views of the CIPS website each year • Our PR coverage exceeds £ 20 million Advertising Value Equivalent each year • Over 6, 000 members a year attend our events including our annual conferences attracting thousands of guests • Purchasing Managers’ Indices, key economic indicators used by the Bank of England organisations all over the world Leading global excellence in procurement and supply