BUSINESS PARTNER CONCEPTB. BRAUN COE PHARMACEUTICAL

V. Frasnetti

Crissier, June 9th, 2016

AGENDA1. Introduction

2. B. Braun presentation

3. Business Partner concept

4. Next steps

INTRODUCTION

Introduction

B. Braun presentation

CoE Pharmaceutical

Business Partner

Concept

Next Steps

Véronique Frasnetti

Position

Procurement manager Switzerland

CoE Pharma Business partner

Category manager for pharma films Europe

Working for B. Braun Medical since 12 years

Background

Various purchasing experiences

Cocoa trader

Formation

MBA in 2011 at EIPM

4B. Braun Medical AG

B. BRAUN PRESENTATION

Introduction

B. Braun presentation

CoE Pharmaceutical

Business Partner

Concept

Next Steps

CORPORATE SOCIAL

RESPONSIBILITY

PROJECTS

177

SALES

EUR MILLION

6,129.8INVESTMENTS

EUR MILLION

787

Through its subsidiaries and holdings, Braun

operates in over

64 countries.

EXISTING SINCE

1839

B. BRAUN AT A GLANCE

EMPLOYEES

55,719

We have subsidiaries in 64 countries.

7B. Braun Medical AG

Headquarters in Melsungen

Production (selection)

Administration (selection)

We have competence in 18 therapy fields.

8B. Braun Medical AG

Pain Therapy Stoma

General Open

Surgery

Incontinence

Diabetes

Interventional

Vascular Diagnostics

and TreatmentInfusion

Therapy Laparoscopy

Nutrition

Therapy

Infection

Prevention

Wound

Management

Orthopedic

Joint Replacement

Degenerative

Spine Surgery

Cardio-Thoracic

SurgeryApheresis

Hemodialysis

Neurosurgery

Acute Dialysis

B. Braun procurement organization

Global organization

Center led but geographically decentralized

60 strategic buyers

Spent of EUR 3.5 billions, currently managed by procurement 2.2 billions

Indirect 55%

Direct 45%

9B. Braun Medical AG

COE PHARMACEUTICAL BUSINESS

PARTNER CONCEPT

Introduction

B. Braun presentation

CoE Pharmaceutical

Business Partner

Concept

Next Steps

Support R&D in order to manage supply related risks, make

sure that the ‘best’ supplier is qualified as of the beginning,

reduce complexity and time to market through early

Procurement involvement and supplier relationship

management.

11B. Braun Medical AG

Why?

How is it working?

The procurement business partner is:

Reporting to the procurement, not R&D

The sole contact for any R&D raw material request

The sole commercial contact for the supplier (for the projects)

Responsible for issuing all the contracts, negotiate all the conditions

Working together with the category managers to ensure coherence

Passing on the relation to the category manager once regular production is starting and

the necessary contracts are in place

12B. Braun Medical AG

Penang

Suzhou

Hanoi

(Jakarta)

Bhiwadi

Tver

Mar Del Plata

Berlin

Sao Goncalo

RubiJaen

Roth Timisoara

Lima

Crissier

Melsungen

B.Braun HC - CoE Pharmaceuticals

18 Facilities

B. Braun Medical AG 13

The way we are integrated

B. Braun Medical AG 14

The way we are integrated

CoE Pharmaceuticals

Packaging Systems Management

Global organisation

Packaging Systems Management

LVP Rigid / Semi Rigid

Melsungen (D)

Packaging Systems Management

Materials / Components / Standards

LVP / SVP Flexibles

Crissier (CH)

Packaging Systems Management

SVP Rigid / Semi Rigid

Berlin (D)

CoE Ph. PSM

Strategy, Concepts & Innovation Management

CoE Ph. PSM

Processing Training & Compliance Management

CoE Ph. PSM

Strategic Purchasing Business Partner

CoE Ph. PSM

Migration Strategy & Studies Management

CoE Ph. PSM

Test & CharacterisationManagement

CoE Ph. PSM

Materials, Components Platform Management

CoE Ph. PSM

LCM & RiskManagement

The benefits

No more business relation

with non complying

suppliers

Most suitable supplier

qualified as of beginning

Limitation of the number of

suppliers

Supply security guaranteed

(DRP)

No pricing bad surprises

Contracts in place prior to

commercial deliveries

starting

Improved risk management

Time to market improved

What to consider when implementing the concept

Do not underestimate the impact of the change

Clearly define the responsibilities between the category managers, the business partner

and R&D

Get the right procurement profile

Get support from the top management

Be ready to face resistance

Organize sufficient meetings during the implementation phase

Make sure that the information flow is appropriate

16B. Braun Medical AG

How do people perceive it now, after 3 years?

From R&D / stakeholder side:

We need it because we do not have the commercial competencies

We would not know whom to contact, therefore having one person is a big help

Without a business partner we would definitively be loosing time

We can’t live without it

17B. Braun Medical AG

How do people perceive it now, after 3 years?

From procurement side:

We definitively need to have a kind of business partner concept

The joint work between the business partner and the category managers should be

improved however it’s often resources issue

This concept should be implemented with other R&D organizations as well

Information flow is a challenge

18B. Braun Medical AG

How do people perceive it now, after 3 years?

From business partner side:

It is clearly an asset for our company

Information flow and joint work with category managers is a challenge, mostly because

of workload

It is essential to get the people on board, especially the procurement and it’s an on-

going task

19B. Braun Medical AG

NEXT STEPS

Introduction

B. Braun presentation

CoE Pharmaceutical

Business Partner

Concept

Next Steps

What is planned for the future

B. Braun Medical AG 21

Our target is to have no R&D projects without procurement

involvement in the future, therefore in 2017, as part of our

strategy 2020, we will start a project aiming to define R&D

needs across our four divisions and the corresponding

procurement support to provide.

We will use the experience gathered with CoE pharma

during the past years and take advantage of the positive

outcome to foster collaboration with R&D across the group.

Michel Pittet

Position

B.Braun Center of Excellence (CoE) Pharmaceuticals Vice President

B.Braun CoE Pharmaceuticals, Head of Container Closures & Delivery Systems Mgt

Working for B. Braun Group since 10 years

Background

Plasticos Packaging Group, technical & Operational Managing Director

CFS (GEA) International, Group Founder & Operations & R&D Managing Director

Tetra Pak International, Head of Packaging Materials and Processes R&D

Formation

Mechanical Engineering

Polymers Materials Science

Business Administration

22B. Braun Medical AG

ANY QUESTIONS