1. A NEW COMPANY… A RICH HERITAGE
Challenges and Opportunities for a New Biopharmaceutical Supply Chain

2. Our name was launched in 2013 but our story begins in 1888
125 years of patient care
Addressing complex and serious diseases
Making a remarkable impact on patients’ lives
SCM World Live 2014 | February 2014 | Confidential © AbbVie 2

3. It takes a global biopharmaceutical company to deliver patient-centered solutions everywhere
TRADITIONAL
PHARMA
Stability, scale, and resources
BIOTECH
Focus, creativity, culture, and agility
TRADITIONAL PHARMA
BIOTECH
SCM World Live 2014 | February 2014 | Confidential © AbbVie 3

4. 170+ Countries | 13 Manufacturing Sites | 6 R&D Sites
Our reach is global
170+ Countries | Manufacturing Sites | R&D Sites
Manufacturing:
North Chicago, Illinois
Lake County, Illinois
ABC, Worcester, Massachusetts
Wyandotte, Michigan
APL, Barceloneta, Puerto Rico
ABL, Barceloneta, Puerto Rico
Jayuya, Puerto Rico
Cork, Ireland
Sligo, Ireland
Ballytivnan, Ireland
Ludwigshafen, Germany
Campoverde, Italy
 Primary R&D Sites:
Lake County, IL
Worcester, MA
Redwood City, CA
Ludwigshafen, Germany
Shanghai, China
Singapore
SCM World Live 2014 | February 2014 | Confidential © AbbVie 4

5. 43 Distribution Centers & 1 Specialty Pharmacy
AbbVie Supply Network
130+
Affiliates
13 AbbVie Plants
35+ Third Parties
>1,000,000 Shipments
2 Planning Centers
98.6%
Customer Service
43 Distribution Centers & 1 Specialty Pharmacy
SAP Impact
Affiliates have be converted to SAP and implemented Back Office efficiencies
Planning Centers have integrated with affiliates
EDNA has reduced EU warehouse footprint from 22 to 17 and configure a “Best for AbbVie” approach
All Plants are using SAP,
SCM World Live 2014 | February 2014 | Confidential © AbbVie 5

6. AbbVie Operations Footprint
= Biologics = Small Molecule = Non-Manufacturing
Zwolle
= Distribution Center
Ballytivnan
Sligo Cork
Ludwigshafen
Campoverde
North Chicago
Abbott Park
Worcester
Redwood City (Facet)
Wyandotte
Paris
Barceloneta
Jayuya
Chicago
Singapore
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7. “Future supply chain” trends are influencing AbbVie’s reinvention in multiple ways
The information needed to manage performance and risk in the Supply Chain increasingly comes from external sources
Our operational performance and effectiveness is increasingly influenced by players and partners that we don’t directly control
TPM’s, TPCM’s, TSP’s, 3PL’s, Customs Brokers
Our ultimate effectiveness and success is measured in different ways
Facilitating our customers’ delivery of medicines and treatments
Pharmacies, Healthcare Systems, Clinics
Improved patient outcomes and experience
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8. As we sharpen our focus and keep an eye toward future supply chain trends, four streams of work become central
SAP
Implementation of a single global instance of SAP to enable AbbVie to achieve a standard target operating model at every site/location
Centers of Excellence
Our ongoing business model, process, and organizational development
Supply Chain Visibility
Deepening and expanding our visibility of the end to end supply chain
Risk Management/Monitoring
Supporting the company’s overall ability to identify and manage risk
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9. FOUNDATION SAP Implementation Schedule
SCM World Live 2014 | February 2014 | Confidential © AbbVie 9

10. Distribution and Logistics COE Commercial Distribution Team
Centers of Excellence will formalize new roles, responsibilities, and rules of engagement
Customer
Commercial Affiliate
Agree on service levels and translate into “final mile” requirements
Choose distribution model (AX, DX or DD)
Requirements
Distribution and Logistics COE
Based on Requirements from Affiliates and other operational considerations
Select 3PLs (warehousing)
Select carriers / forwarders
Architect solutions to meet
“final mile” requirements
Define policies / processes for 3PLs /carriers / forwarders
Commercial Distribution Team
Decision Rights and Distribution of Responsibilities Underpinning COE Design
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11. New solutions we are piloting use a blend of proprietary and public data to help AbbVie better manage global supply chain risk
… and more targeted impact analysis can be done by filtering on product
As world events occur, we are now able to assess the nature of them, the impacts, and engage with locations as appropriate …
AbbVie is now able to visualize and monitor commercial, operational, and critical supplier and partner locations globally …
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12. Other new capabilities will allow AbbVie to extend supply chain visibility across global logistics networks and into market channels
AbbVie/TPM
Distributor
Pharmacy
Patient
In Stock
In Transit
In Market
Consumed
Dispensed
Suppliers
80% of the data a company needs resides beyond its four walls, in partner systems
Visibility to all orders
In-transit inventory
In-transit status
Cold Chain Status
Security Issues
Open purchase orders
Order lead-times
Actual lead times
Fulfillment cost
Landed cost
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13. AbbVie Lessons Learned – Year 1
Balancing the focus, investment, and resource commitment across multiple important initiatives
Target Operating Model, Enabling Technologies, and Innovation Initiatives
Continuing to develop our culture and leverage our talent effectively
Rationalizing and justifying role / responsibility changes
Innovating, while keeping our eyes on the ball - Gross Margin Improvement and performance are still important measurements
Challenges in getting third parties connected and integrated. IT Strategy is paramount to success.
Nature of data (volumes and types) required to innovate and manage the extended supply chain effectively
SCM World Live 2014 | February 2014 | Confidential © AbbVie 13

14. Thank you

15. We work to understand what surrounds the patient
Disease
Manufacture
Experience
System
Delivery
Support
Understanding the entire patient experience Understanding disease at every stage Understanding the development, manufacture, and delivery of medicine to provide convenient, reliable therapeutics Understanding the healthcare system Support programs for patients
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