A NEW COMPANY… A RICH HERITAGE Challenges and Opportunities for a New Biopharmaceutical Supply Chain

Our name was launched in 2013 but our story begins in 1888 125 years of patient care Addressing complex and serious diseases Making a remarkable impact on patients’ lives SCM World Live 2014 | February 2014 | Confidential © 2014 AbbVie 2

It takes a global biopharmaceutical company to deliver patient-centered solutions everywhere TRADITIONAL PHARMA Stability, scale, and resources BIOTECH Focus, creativity, culture, and agility TRADITIONAL PHARMA BIOTECH SCM World Live 2014 | February 2014 | Confidential © 2014 AbbVie 3

170+ Countries | 13 Manufacturing Sites | 6 R&D Sites Our reach is global 170+ Countries | 13 Manufacturing Sites | 6 R&D Sites Manufacturing: North Chicago, Illinois Lake County, Illinois ABC, Worcester, Massachusetts Wyandotte, Michigan APL, Barceloneta, Puerto Rico ABL, Barceloneta, Puerto Rico Jayuya, Puerto Rico Cork, Ireland Sligo, Ireland Ballytivnan, Ireland Ludwigshafen, Germany Campoverde, Italy  Primary R&D Sites: Lake County, IL Worcester, MA Redwood City, CA Ludwigshafen, Germany Shanghai, China Singapore SCM World Live 2014 | February 2014 | Confidential © 2014 AbbVie 4

43 Distribution Centers & 1 Specialty Pharmacy AbbVie Supply Network 130+ Affiliates 13 AbbVie Plants 35+ Third Parties >1,000,000 Shipments 2 Planning Centers 98.6% Customer Service 43 Distribution Centers & 1 Specialty Pharmacy SAP Impact Affiliates have be converted to SAP and implemented Back Office efficiencies Planning Centers have integrated with affiliates EDNA has reduced EU warehouse footprint from 22 to 17 and configure a “Best for AbbVie” approach All Plants are using SAP, SCM World Live 2014 | February 2014 | Confidential © 2014 AbbVie 5

AbbVie Operations Footprint = Biologics = Small Molecule = Non-Manufacturing Zwolle = Distribution Center Ballytivnan Sligo Cork Ludwigshafen Campoverde North Chicago Abbott Park Worcester Redwood City (Facet) Wyandotte Paris Barceloneta Jayuya Chicago Singapore SCM World Live 2014 | February 2014 | Confidential © 2014 AbbVie 6

“Future supply chain” trends are influencing AbbVie’s reinvention in multiple ways The information needed to manage performance and risk in the Supply Chain increasingly comes from external sources Our operational performance and effectiveness is increasingly influenced by players and partners that we don’t directly control TPM’s, TPCM’s, TSP’s, 3PL’s, Customs Brokers Our ultimate effectiveness and success is measured in different ways Facilitating our customers’ delivery of medicines and treatments Pharmacies, Healthcare Systems, Clinics Improved patient outcomes and experience SCM World Live 2014 | February 2014 | Confidential © 2014 AbbVie 7

As we sharpen our focus and keep an eye toward future supply chain trends, four streams of work become central SAP Implementation of a single global instance of SAP to enable AbbVie to achieve a standard target operating model at every site/location Centers of Excellence Our ongoing business model, process, and organizational development Supply Chain Visibility Deepening and expanding our visibility of the end to end supply chain Risk Management/Monitoring Supporting the company’s overall ability to identify and manage risk SCM World Live 2014 | February 2014 | Confidential © 2014 AbbVie 8

FOUNDATION SAP Implementation Schedule SCM World Live 2014 | February 2014 | Confidential © 2014 AbbVie 9

Distribution and Logistics COE Commercial Distribution Team Centers of Excellence will formalize new roles, responsibilities, and rules of engagement Customer Commercial Affiliate Agree on service levels and translate into “final mile” requirements Choose distribution model (AX, DX or DD) Requirements Distribution and Logistics COE Based on Requirements from Affiliates and other operational considerations Select 3PLs (warehousing) Select carriers / forwarders Architect solutions to meet “final mile” requirements Define policies / processes for 3PLs /carriers / forwarders Commercial Distribution Team Decision Rights and Distribution of Responsibilities Underpinning COE Design SCM World Live 2014 | February 2014 | Confidential © 2014 AbbVie 10

New solutions we are piloting use a blend of proprietary and public data to help AbbVie better manage global supply chain risk … and more targeted impact analysis can be done by filtering on product As world events occur, we are now able to assess the nature of them, the impacts, and engage with locations as appropriate … AbbVie is now able to visualize and monitor commercial, operational, and critical supplier and partner locations globally … SCM World Live 2014 | February 2014 | Confidential © 2014 AbbVie 11

Other new capabilities will allow AbbVie to extend supply chain visibility across global logistics networks and into market channels AbbVie/TPM Distributor Pharmacy Patient In Stock In Transit In Market Consumed Dispensed Suppliers 80% of the data a company needs resides beyond its four walls, in partner systems Visibility to all orders In-transit inventory In-transit status Cold Chain Status Security Issues Open purchase orders Order lead-times Actual lead times Fulfillment cost Landed cost SCM World Live 2014 | February 2014 | Confidential © 2014 AbbVie 12

AbbVie Lessons Learned – Year 1 Balancing the focus, investment, and resource commitment across multiple important initiatives Target Operating Model, Enabling Technologies, and Innovation Initiatives Continuing to develop our culture and leverage our talent effectively Rationalizing and justifying role / responsibility changes Innovating, while keeping our eyes on the ball - Gross Margin Improvement and performance are still important measurements Challenges in getting third parties connected and integrated. IT Strategy is paramount to success. Nature of data (volumes and types) required to innovate and manage the extended supply chain effectively SCM World Live 2014 | February 2014 | Confidential © 2014 AbbVie 13

Thank you

We work to understand what surrounds the patient Disease Manufacture Experience System Delivery Support Understanding the entire patient experience Understanding disease at every stage Understanding the development, manufacture, and delivery of medicine to provide convenient, reliable therapeutics Understanding the healthcare system Support programs for patients SCM World Live 2014 | February 2014 | Confidential © 2014 AbbVie 15