UCB Purchasing Center of Excellence from Expertise to Excellence

19 October 2016 – UCB HQ

Beroe COE Club

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UCB: reinventing itself, leveraging a solid heritage

1928: Emmanuel

Janssen establishes

UCB in Brussels

1972: A new state-

of-the-art R&D

center in Braine-

l’Alleud, Belgium

1980s: UCB

registers its novel

antihistamine

Zyrtec®

1990s: approval of

Keppra®,

a novel

anti-epileptic

2004: UCB

acquires British

biotech company

Celltech

2006: UCB

acquires German

pharma company

Schwarz Pharma

Today

Combine leadership

in antibody research

& chemistry expertise

to better treat severe

diseases

1928 1952 1972 1980s 1990s 2004 2006 2008-2010 Today

Chemical Group Primary Care Pharma Specialty Bio-pharma

Launch of Cimzia®,

Vimpat® & Neupro®

(CVN)

1952: UCB

discovers Atarax®

U.S. license

awarded to Pfizer

1936: UCB enters

the United States

1936

3 core medicines for patients with severe diseases

Rheumatoid arthritis

Psoriatic arthritis (PSA)

Ankylosing spondylitis (AS)

Axial spondyloarthritis (AxSpA)

Crohn’s disease

Epilepsy adjunctive therapy

Parkinson’s disease

Restless legs syndrome

Our purpose

Creating value

for patients

Everything we do starts with one

simple question: “how will this create

value for people living with severe

diseases ?"

Strong, accelerating trends requiring a shift to patient value 5

UCB Response

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Purchasing Trends 2016 9

The world around us: a reality we cannot ignore 10

Our Purchasing Value Model

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Doubling Our Impact By 2020

Our People

Capabilities, Tools, and Processes

What

How

Enablers

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16

VP Global

Purchasing

Travel & Fleet

Marketing &

Commercial

Professional

Services

Technical &

Investments

Purchasing

Enablement

Purchasing Development

Direct Material

Americas

APAC

South / East

Europe

Northern

Europe

Cate

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ry M

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ag

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cal P

urc

hasi

ng

Op

era

tio

nal Ex

cell

en

ce

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8

3

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Global Purchasing at UCB

50 Professionals in 11 Countries

Capabilities, Process and Tools

Purchasing Center of Excellence

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Matteo Stefani

Anne Bernier

Nina Ricci Fedotova

Natalya

Tkachenko

Stéphane Baton

Barbara Weiss

Laura Formigo

AD Purchasing

Development

Purchasing

Development Manager

Purchasing

Development Analyst

Head of

Purchasing

Enablement

Head of

Purchasing

Development

Purchasing

Enablement Manager

Content Management

Analyst

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Operational

Competence

Continuous

Improvement Value

Creation

Service

Delivery

from Expertise to Excellence

Capabilities, Process and Tool Building Blocks

Drive innovation throughout

the Purchasing team

Innovation Enablement

Develop Purchasing Capabilities and foster new way

of working

Capability Enablement

Optimize Suppliers and Stakeholder Engagement

Stakeholders and Suppliers Relationship Management

Improve efficiency of existing processes and activities.

Enable processes efficacy

Process Improvement

Proactively Monitor and Manage Purchasing

Performance

Performance Management

Maintain and Develop Purchasing tools

combining user inputs with best in class

solutions

Tools Development

Prioritize Key Projects and allocate

time and resources

Project Management Office

Provide tools and resources to enable Market and Competitive

Intelligence across the purchasing organization

Market Intelligence

Capabilities Process Tools

Develop and Deploy a Purchasing Analytics

strategy

Excellence in Analytics

CoE Expertise Building Blocks: What are we doing 1/3 21

Drive innovation throughout

the Purchasing team

Innovation Enablement

Develop Purchasing Capabilities and foster new way

of working

Capability Enablement

Optimize Suppliers and Stakeholder Engagement

Stakeholders and Suppliers Relationship Management

Capabilities Process Tools

■ NPS for internal and external stakeholders

■ Integrate and simplify SSRM framework

■ Supplier 360. Combine different sources to prepare suppliers ID Cards

(Intelligence, Analytics, Historical Expenditure, Invoices)

■ Multichannel communication strategy: Purchasing TV, Intranet, Extranet, Collaboration site,

Yammer

■ Build and manage a capability roadmap

■ Structured approach towards competencies development (current and emerging competencies)

■ BEST PLACE TO WORK : Stimulate, coordinate and accelerate Purchasing Team Engagement

■ DRIVEN: a methodology to source innovation

■ Mindset change through communication & workshops

■ Teams trained on IDEATION techniques

■ Measure the value using a dedicated framework

CoE Expertise Building Blocks: What are we doing 2/3 22

■ Focus on People Capabilities, Process Automation & Tools Enhancement

■ Separate Data Science from Business Analytics.

■ Spend Analysis & Negotiation support delivered as a service from Genpact

■ Purchasing will be Part of SAP Hana Artificial Intelligence.

■ Market Exploration & Continuous Improvement

Provide tools and resources to enable Market and Competitive

Intelligence across the purchasing organization

Market Intelligence

Capabilities Process Tools

Prioritize Key Projects and allocate

time and resources

Project Management Office

Showcase what can data tell us? How can we develop an data

agility?

Excellence in Analytics

■ Unlimited Intelligence Licenses with Beroe

■ Procurement Leaders and IBIS world subscriptions

■ Proactively share intelligence and report with the teams

■ Market Intelligence Portal in 2017 to share intelligence within the team and with Stakeholders

■ Share knowledge with stakeholders (cyclops)

■ COE portfolio management and reporting

■ Structured feedback loop

■ Drive Project Management Excellence in Purchasing

CoE Expertise Building Blocks: What are we doing 3/3 23

Capabilities Process Tools

Improve efficiency of existing processes and activities.

Enable processes efficacy

Process Improvement

Proactively Monitor and Manage Purchasing

Performance

Performance Management

Maintain and Develop Purchasing tools

combining user inputs with best in class

solutions

Tools Development ■ Develop a Purchasing tool strategy beyond Ariba: simplicity and mobility.

■ What will we really need?

■ E-Sourcing as a service from Genpact

■ Contract Encoding Automation

■ Assess tool Automation

■ Review S2P & Purchasing Policy (2017)

■ Challenge Existing PR-PO Process (and need to create POs)

■ Assess PR-PO & Vendor Automation Opportunities (2017)

■ Expand Tactical Buying and Introduce Spot Buy solutions

■ Identify new metrics to dialogue with Stakeholders

■ Move from performance measurement to management through Tactical Buying and Analytics

■ Start reporting on Innovation

Questions?

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