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

2. Leading global excellence in procurement and supply 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 1990’s 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 AstraZeneca 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 Who is Paula Gildert?

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

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

5. Leading global excellence in procurement and supply An Example 7% 10% 9% Target 9%

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

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

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

9. Development Productivity 2009-2012 $1bn in Productivity gains & $900m in Reinvestments Productivity delivery In USD$Mio @ Budget 2012 rates Total Reinvestment $900m Actual 2009 Actual 2010 Actual 2011 Actual 2012 9| 2012 Update | Neil Johnston | Jan 2013 | Confidential

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

11. Leading global excellence in procurement and supply

12. 12 Thought

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

14. Leading global excellence in procurement and supply Strategic Themes FY14 + Public Good Leading the Global Standard Membership Transformation Knowledge Leadership Global Reach Sustainable growth in Corporate Customers

15. Leading global excellence in procurement and supply 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 and organisations all over the world CIPS – the vital statistics

16. Leading global excellence in procurement and supply CIPS Foundation

17. Leading global excellence in procurement and supply CIPS Qualifications Programme

18. Leading global excellence in procurement and supply The strategic importance of the Branches

19. Leading global excellence in procurement and supply Thank you