3rd IMPULSE Scientific Workshop

Procter & Gamble, Brussels

October 2008

Patrizio Ricci

• Italian

• 13 yrs with P&G in Brussels & Cincinnati & many extended stay across EMEA

• Engineering Associate Director WE Fabric Care & Global Process Breakthrough

– Dry Laundry ( Ariel / Daz / Bolt )– Laundry Liquids (Ariel, Bold, Dash, Dreft)– Fabric Enhancers (Lenor, Downy)– Laundry Unit Dose ( Ariel tabs ) – Bleach (Ace)– Hand Dish (Fairy, Dreft)

• 8 Fluids Plants around the world

Topics

• P&G

• Engineering

• Process Breakthrough

• A changing environment

• Sustainability

• Connect and Develop

Some more facts

• 138,000 employees

• Operating in over 80 countries worldwide

• Active in every market in Western Europe

• Our European headquarters in Geneva, Switzerland.

• Several European Technical Centers

• In Brussel Innovation Center : >800 R&D, > 100 Engineers, > 30 nationalities.

Company structureCompany structure

What is a good engineer ?

Where do we workWhere do we work

Percentage of Engineeringin P&G’s four organizations

1. Technology Innovate

2. Capital Management Provide

3. Health, Safety &

Environment Protect

4. Capability BuildingImprove

4 core competencies 4 core competencies

PROCESS BREAKTHROUGH

We want to explore uncharted territory, find breakthrough process solutions , and with our partners, develop discontinuous technologies

that meet our customers & consumers needs and provide competitive advantage for our

Company.

THE 1992 EFFECT

A Fast Moving Consumer Good Company

In a fast Moving World

Mr Proper Bathroom Production Sites 1992

Amiens

Gattatico (I)

Worms Plant

Alizol (F) - contractor

Global R&D Surface Care

Manchester

Key changes in 1992

• Elimination of intra EU Custom

• Cabotage: Full truck loads in both directions– Decrease of intra EU Road Transport cost

Mr Proper Bathroom Production Sites 2008

Gattatico (I)

Global R&D Surface Care

Advantages of central Sourcing

• Economies of scale on Capital Expenditure & Operating Cost

• Easier Product & Technology Standardization (one plant -> one technology platform -> one product for the whole of Europe)

• Concentrate R&D – Engineering – Supply Chain Management effort

• Faster Continental Roll-outs

The World is Changing Fast!How Far on $500 Worth of Diesel?

1999

2001

2004

2007 2008

What else is changing ?

• More product customization

• Faster response to local market demands

• Globalization of the market

• Higher cost pressure

• Focus on Sustainability

• …

And on top we want

• More Flexible unit – Easy to relocate

• Less capital…..

Changing world

“We need to anticipate the game, be ready with our engineers to solve the challenges that are not defined yet, using technologies that haven’t yet been invented in order to solve problems we don’t even know are problems yet.”

1998

2000

2002 2005

2006

2007

2003

Pace of Innovation

Sustainability

Sustainability on Leadership Agenda

• “We are committed to helping solve the world’s

sustainability challenges. We do this through

product innovations, reducing the environmental

footprint of our operations and through our

contributions to help children live, learn and

thrive. Companies like P&G can be a force for

good in the world. This is a responsibility and an

opportunity that we embrace.”

A. G. Lafley,Chairman of the Board andChief Executive

Current Landscape

Defining Sustainability

•“Sustainable development is a very simple idea. It is about ensuring a better quality of life for everyone,

now and for generations to come.”

Department of the Environment,

Transport and the Regions,

London, UK.

February ‘98

Built Into P&G’s Purpose and Values

• P&G Purpose:

• We provide branded products and services of

superior quality and value that improve the lives

of the world’s consumers, now and for

generations to come.

• Principles:

• We incorporate sustainability into our products,

packaging and operations.

P&G Sustainability MatrixO

pp

ort

un

ity

Resp

on

sib

ilit

y

Social

PVP

Environmental

Values andPolicies

Worldwide Business Conduct Manual

Supplier sustainability guidelines & complianceCommunity programs

Disaster Relief & Preparedness

Worker Health & Safety

Eco-efficiency – cost savings

Sustainable Forestry

Environmental Quality policy & management system

Product Safety assessment tools(Risk Assessment, LCA, PSAT, etc)

Product Safety Policy

Older population products

Child Development

Products for lower income

consumers Retailer Sustainability

Tide Cold WaterAriel Cool cleanFuture Friendly

InnovativeDistribution

P&G’s Sustainability 2012 Goals

• Develop and market at least $20 billion dollars of “sustainable innovation”

products.

• Complete a decade-long program of reducing the greenhouse gas

emissions, disposed waste, and energy and water consumption of our

own operations by at least 10% each.

• Improve the lives of hundreds of millions of children in need around the

world through our global Cause program - Live, Learn and Thrive.

So how do we face all these challenges ?

Open Innovation or C&D

P&G’s innovation business model to leverage external innovation assets.

Finding innovative products, packaging, technologies, processes and commercial connections from anywhere in the world.

• Disruptive Technologies

Plasma technology to modify interior surface of bottles to get the “last drop out”.

• Cooked Technologies

Reapplication of electro-static spray technology from car painting to makeup application.

• Ready To Go Product Ideas

Swiffer Dusters from Unicharm. We also leveraged their production lines and advertising.

• Commercial Connection

Partnership with Clorox/Glad.

Examples from the C+D Focus Areas

$5 Billion/yrNew Sales

8,000 P&G

Researchers

The C+D Concept

>Two Millions

More than 2,000,000 researchers worldwide in science areas of interest to P&G.

This is why we are here

Let us innovate together