Novartis Indonesia Commit to increase accessibility of innovative

Novartis Indonesia Commit to increase accessibility of innovative medicine to more Indonesian Dr Luthfi Mardiansyah CPO Head & Country President Novartis Group Indonesia Bandung, 9 December 2012

Novartis Group : Basel - Switzerland Win through Science-based innovation, in high growth segments of health care Environment Patient needs Novartis Pharmaceuticals Innovative medicines Eye care (Alcon) Prevention Affordable options Full range of healthcare options Generics (Sandoz) Consumer Health (OTC, Animal Health) Self-care Vaccines and Diagnostics 2

We have a broad healthcare portfolio Focus to meets the varied and often complex needs of patients 2010 net sales by segment Pharmaceuticals Innovative patent-protected medicines Alcon Global leader in eye care with surgical, ophthalmology and vision care V&D Consumer Health Sandoz Alcon, Inc. 1 Pharmaceuticals Strong, trustworthy brands for knowledgeable Consumer Health consumers: OTC (Over-the. Counter), Animal Health Vaccines and Diagnostics 1 Since August 25, 2010 consolidation 3 | Novartis Indonesia - ITB Affordable, high-quality generic medicines and biosimilars Vaccines and diagnostic tools to protect against lifethreatening diseases

Our focus is on patients Our purpose is to care and cure. We provide medicines to treat and prevent diseases, ease suffering and improve quality of life. 4 | Novartis Indonesia - ITB

Fortune – World’s Most Admired Companies 2012 Novartis in top three positions over 8 years The 10 most admired pharmaceutical companies 2004 2005 2006 2007 2008 2009 2010 2011 2012 #1 J&J J&J Novartis J&J Abbott Novartis #2 Pfizer Novartis J&J Merck Abbott #3 Eli Lilly Abbott Roche Merck Abbott Novartis J&J Bristol-MS #4 Merck Abbott Amgen Eli Lilly Abbott Merck Roche Abbott Merck #5 Novartis Pfizer GSK Eli Lilly GSK Amgen J&J #6 GSK Eli Lilly Amgen GSK Amgen Astra. Z GSK Roche #7 Abbott Amgen Roche Abbott Roche Astra. Z Amgen Roche GSK #8 Astra. Z Roche Astra. Z Wyeth Amgen Eli Lilly Merck Pfizer Amgen #9 Roche Astra. Z Wyeth Sanofi. A Wyeth Bayer Astra. Z Pfizer Wyeth Pfizer Astra. Z Boe. Ing Bristol-M S Eli Lilly Boe. Ing #10 Aventis

Pharmaceutical Sales and Market Share Worldwide Novartis AG is projected to lead the global market in 2016 -2018

2011 R&D Spending of Top 20 Companies Novartis No. 2 accross the industries and No. 1 in Pharma Rank R&D spending 2011, USD billion Change from 2010 As a % of sales Headquarters Location 2011 2010 1 6 Toyota 9. 9 16. 5% 4. 2% Japan 2 3 Novartis 9. 6 5. 5% 16. 4% Europe Healthcare 3 1 Roche Holding 9. 4 -2. 1% 19. 6% Europe Healthcare 4 2 Pfizer 9. 1 -3. 2% 13. 5% North America Healthcare 5 4 Microsoft 9. 0 3. 4% 12. 9% North America Software and Internet 6 7 Samsung 9. 0 13. 9% 7 5 Merck 8. 5 -1, 2% 17. 6% North America Healthcare 8 11 Intel 8. 4 27. 3% 15. 5% North America Computing and Electronics 9 9 General Motors 8. 1 15. 7% 5. 4% North America 10 8 Nokia 7. 8 0% 14. 5% Europe 11 14 Volkswagen 7. 7 26. 2% 3. 5% Europe 12 10 Johnson & Johnson 7. 5 10. 3% 11. 6% North America Healthcare 13 16 Sanofi 6. 7 15. 5% 14. 4% Europe Healthcare 14 12 Panasonic 6. 6 6. 5% 6. 6% Japan Computing and Electronics 15 17 Honda 6. 6 15. 8% 6. 5% Japan Auto 16 13 Glaxo. Smith. Kline 6. 3 3. 3% 14. 3% Europe 17 15 IBM 6. 3 5. 0% 5. 9% North America Computing and Electronics 18 19 Cisco Systems 5. 8 9. 4% 13. 5% North America Computing and Electronics 19 26 Daimler 5. 8 26. 1% 3. 9% Europe 20 18 Astra. Zeneca 5. 5 3. 8% 16. 4% Europe 153. 6 Avg. 9. 9% Company TOPdata, 20 TOTAL Source: Bloomberg Booz & Company Source: 2012 Booz & Company Inc. 6. 0% Asia Avg. 8. 3% Industry Auto Computing and Electronics Auto Healthcare

Our Commitment to R&D Novartis has continuously moved up in R&D investment ranking Ranking by R&D spend Novartis Headquarters: Industry: Switzerland Health R&D Spend: Revenue: 2011 USD 9. 6 bn USD 58. 6 bn 1 Microsoft Ford Toyota Roche Toyota 2 Pfizer General Motors Nokia Microsoft Pfizer Novartis 3 Ford Toyota Ford Pfizer Roche Nokia Novartis Roche 4 Daimler J&J Nokia Microsoft Toyota Microsoft Pfizer 5 Toyota General Motors Daimler J&J General Motors Pfizer Merck Microsoft 6 General Motors Siemens General Motors Ford Pfizer Novartis Toyota Samsung 7 Siemens J&J Microsoft J&J Samsung Merck 8 Matsushita Microsoft Glaxo. Smith. Kline Roche Ford Sanofi-Aventis Nokia Intel 9 IBM Siemens Samsung Novartis 10 J&J Glaxo. Smith. Kline IBM Glaxo. Smith. Kline Sanofi-Aventis 11 Glaxo. Smith. Kline Samsung Novartis 12 Intel Sanofi-Aventis Samsung 13 Volkswagen Sanofi-Aventis IBM 14 Sony Sanofi-Aventis Novartis 15 Nokia Matsushita 16 Honda 17 Glaxo. Smith. Kline General Motors J&J Nokia Intel Volkswagen IBM Panasonic J&J IBM Intel Glaxo. Smith. Kline Sanofi-Aventis Intel Merck Volkswagen Panasonic Volkswagen Astra. Zeneca Siemens Volkswagen IBM Honda Novartis Roche Honda Siemens Sanofi-Aventis Glaxo. Smith. Kline Samsung Nokia Matsushita Merck Volkswagen Cisco Honda IBM 18 Novartis Sony Nokia Matsushita Astra. Zeneca Panasonic Astra. Zeneca Cisco 19 Roche Merck Volkswagen Cisco Honda Cisco Daimler 20 Merck Honda Sony Panasonic Ford Siemens Astra. Zeneca 2004 2005 2006 2007 2008 2009 2010 2011 Source: 2012 Booz & Company Inc. Samsung General Motors Glaxo. Smith. Kline General Motors

The Research and Development Process Take an averages of 10 -15 years in developing a new medicines

More than 3, 000 Medicines were in Development in 2011

Pharmaceutical Market in Indonesia

Pharmaceutical Market Overview Pharmaceutical business is a dynamic industry – huge potential Double Digit Growth • • • Indonesia’s pharmaceutical market was valued at around USD 5, 1 bn in 2012 with double digit growth. Increased by 12% from 2011 USD 20/Capita The increase was driven by Ethical business with 59% market share. This increase driven by generic entry after patent expiry of some molecules By 2019, prescription medicines are forecasted to reach almost USD 6. 12 bn Universal Coverage 2014 • • • After delaying about 2 years, the draft Law on Social Security Administering Bodies (BPJS) agreed in 2011 PT. ASKES will be prepared to transform into BPJS by 2014. BPJS is a non-profit public institution who is directly reporting to President Government is pushing the implementation of SJSN (63% coverage in 2014, 100% in 2019) JAMKESMAS will start to manage under ASKES in 2013 Premium for poor people and informal sector Rp 22, 201 while formal sector will be 5% person 12 | Novartis Indonesia - ITB

Pharmaceutical Market Overview Opportunities vs Challenges • UHC implementation large potential market Opportunities • Positive GDP growth • Double digit growth and outlook remain positive • Increase disease knowledge among Indonesian • Better healthcare infrastructure across the nation • Healthcare spending is low (<5% of GDP) Challenges • Over regulated industry • Regulation from different ministries are noncomplementary each other • Limited capabilities in drug production • R&D is not fully developed lack of incentives • Drug perceives as the most expensive health expenditure 13 | Company Presentation | Corporate Communications | February 2009 | Business Use Only

Overcoming challenges in the market How Pharmaceutical Industry contribute in shaping the environment 14 | Company Presentation | Corporate Communications | February 2009 | Business Use Only

NOVARTIS INDONESIA - Highest Growth MNC Rank #3 in 2011 – YTD Oct 2012 Pharmaceutical-Rx Market 2011 (IDR Bio) Growth 12. 6% -9. 7% 26. 1% 10. 6% 15. 1% 6. 8% 12. 2% 4. 7% - 5. 4% Source: IPMG

How Novartis Helps Patients’ Access to Innovative Drugs?

WHO Framework on The Access to Medication

Novartis focus on Accessibility and Affordability Accessibility § Patients access program for CML patients through GIPAP & NOA program § Treatment accessibility for patients with LEPRA – cooperation with WHO in some centers such as SINTANALA hospital § Education and compliance program with cost sharing for DEMENTIA patients Affordability § Novartis product is available in government insurance, ASKES and JAMKESMAS 18 | Novartis Indonesia - ITB Disclaimer: All the information presented is for healthcare practitioner purposes only.

NITD-Hasanuddin Clinical Research Initiatives Helping to Fight the Tropical Disease Novartis Institute for Tropical Diseases inaugurates new clinical research initiatives in Indonesia called the NITD – Hasanuddin University Clinical Research Initiates (NHCRI) • The institute to study dengue fever, tuberculosis and malaria • Partnership with Hassanudin University will expand NITD’s research capabilities and expertise • Alliance will drive clinical research to explore novel approaches for the treatment of dengue fever, tuberculosis and malaria • New laboratories in Makassar will conduct patients studies in epidemiology, diagnostics, biomarker technologies and novel drug candidates 19 | Novartis Indonesia - ITB

SEHATi Bersama, Sehatkan Indonesia! Enlarge its organization, increase its contribution to Indonesia SEHATi BERSAMA actualizes in 3 sub program: SEHATi Berbakti: SEHATi Bersinergi SEHATi Berkinerja: § Our commitment which § Actualizes in a form of § Actualize by delivering realized through its dedication for more than 30 years in providing innovative treatment for Indonesian § In 2011, Novartis launches new innovative treatment for Diabetes, Osteoporosis, Malaria, COPD and wet AMD 20 | Novartis Indonesia - ITB spirit to synergize with all stakeholders through several initiative: • Clinical trial phase 3 & 4 in Indonesia to discover new treatment. This initiative provides opportunity for knowledge transfer • Partnerships with related stakeholders to improve access and affordability to the innovative treatments excellent performance to achieve positive growth in Indonesia (No. 1 by 2016) § Provide more career opportunities for talented Indonesian § Provides human resource development in pharmaceuticals and biotechnology industries

Thank you

Background dr. Luthfi Mardiansyah • • Chairman – International Pharmaceutical Manufacturers Group (2009 -present) Vice Chairman – Euro. Cham (2011 -present) Professional experiences: • President Director PT Novartis Indonesia, 2011 - current • President Director PT Pfizer Indonesia, 2008 -2010 • Sales Director PT Pfizer Indonesia, 2007 -2008 • General Manager Capsugel China, 2002 -2007 • General Manager Capsugel Indonesia, 1997 -2001 • GM In’t Division Indofood, 1994 -1997 Educational background: • Medical Dept. Trisakti University, Jakarta, 1987 • LPPM Jakarta – 1989 • Michigan Business School – 2001 • Macquarie Graduate School of Management - 2003 22 | Company Presentation | Corporate Communications | Dec 2012 | Business Use Only