LEAP: Three Pathways to build growth, create best-in-class commercial

capabilities and improve organisational fitness and productivity

LeapGrowth LeapAbility LeapFit

Invest to Win We Sell. Or Else. Do the Right Things Right.

Build Growth Platforms through a Create best-in-class Commercial Improve Organisational Fitness and
Goal

combination of internal focus and
external bolt-ons
Energize the Core
1 5
We aim to achieve category leadership with our
top 6 brands because it provides us with scale
and consumer loyalty.
2 Access “Middle of Pyramid”
We will move from “skimming the top” to “go
Initiatives
Capabilities by rebalancing sales and
marketing mix
Drive Sales Force Optimisation and Effectiveness
(SFO & SFE)
We will put sales at the center by optimising the
size and deployment and increasing the productivity
of our sales forces.
Productivity by concentrating resources
on opportunities
8⇨ Push for 20
We will work smarter, spend responsibly, and
invest only in business-generating opportunities to
generate a Return on Sales of >20%
Manufacturing, Supply and Quality Excellence
9

deep” by exploiting consumer and shopper
insights to win with lower income consumers in
emerging markets.
3 Focused Expansion of Portfolio
We actively manage our business and brand
portfolio though innovation, switches & transfers,
acquisitions & licensing arrangements and
divestitures.
Leverage New Channels
4 performing organization.
We will capitalize on the emergence and
growing importance of new customer avenues.
Sharpen Key Account and Category Management We continuously drive excess costs and
6 unproductive assets out of our business and
thereby reduce our cost of goods while not
compromising on quality and on supply chain
flexibility.
Leading Edge Marketing
7 10 Best People
We will build a team of passionate, success-
driven, and proud contributors to our business,
thereby making Novartis a fulfilling, fun, and high-

1
 4
Leverage New Channels
Strategy KPIs

We will aggressively expand into new channels with priority on SFO markets of ANZ,
Indonesia, Pakistan, Japan and Korea. Identified SFO
upsides in T’11

Tactics Owner Key Actions/Milestones Timeline

ANZ
 Expand into XX Independent Grocery outlets  A .Phillips  Outlets and coverage identified in SFO business case  Q3 2010
in AU and XX Grocery outlets in NZ  Go live  Q4 2010

 Scope alternative channel opportunities –  A .Phillips  Business Case  Q4 2010

Petrol and Convenience and Foodservice  Implement as 2011 PAT  Q1 2011

Indonesia
 Expand into modern trade channel  J.Atman  Launch into Carrefour, Indomaret, Giant  Q2 2010

Pakistan
Grocery/GSL  Farhan
 Diversify into grocery channel by launching  Launch of CaC Women in July 2010  Q3 2010
Benefiber and CaC Woman
 Extend distribution & develop brand activation  Business case/Contract  August ’10
programs at top 10 outlets of CSD Chain
stores  Go live  Q4, 2010
Rx Brands  Farhan
 Establish Rx brands availablity in pharmacies  On going
at Makro, Metro, Carrefour and run disease
awareness programs to build Rx.
 Extend availability to newly opened  Q1, 2011
pharmacies at airports