Felix Li Learning Head, Novartis China University Building Corporate University, the organization for the advancement of leadership development Felix Li Learning Head, Novartis China University

Novartis is a world-leading healthcare company Leading market position One of 35 largest companies by market capitalization Among most respected companies globally Key figures Sales by region – 2011 Canada/ Latin America 2011 USD billion Net sales: 58.5 Net income: 9.2 R&D investment: 9.2 Europe Asia/Africa/ Australasia The Novartis Group is a world leader in offering medicines and vaccines Market capitalization: FT 500 ranking (http://www.ft.com/ft500) Reputation: Fortune’s “World’s Most Admired Companies” (No 1 in pharma industry in 2011); gold class in SAM; included in the Barron’s magazine’s list of the world’s most respected companies From this slides we may see most of our sales come from US and European, but what will be happened in the future. US

Emerging Market is moving fast in pharmaceutical industry 2009 Rank 2011 Rank 2013 Rank 1 United States 2 Japan 3 France China 4 Germany 5 6 Italy 7 Spain 8 United Kingdom Brazil 9 Canada 10 11 Russia 12 Turkey India Venezuela 13 South Korea 14 Mexico 15 16 Australia 17 Greece 18 19 Netherlands Poland 20 Belgium Market capacity Tier 1 & 2 Markets Tier 3 Market

Business Challenge in China market Coping with complex economy environment. Hot competition with global and local players. Balance between high-speed growth and sustainable growth Business model innovation. .War for talents. 1.Goverment information flow, decision process, Foreign participation is constrained in many sectors, Doing business in China is also complicated by the active role of government in many of the largest sectors 2. 3. 4. MNCs often do not have the right mix of people or organizational structures on the ground in China. Inability to provide an integrated solution, Cost structure/product offering too expensive for the “value” focused China market, Products designed for a fundamentally different technology than the one dominant in China. Localize products, operations, and business models

Systematic development of Novartis globally Grow Leaders from within Novartis Fill 70% of the positions with internal associates Each associate has a development plan Each associates has minimum two Career & Development discussions per year

Global Learning Strategy Part of leadership development,

Key Leadership Development Needs Business Manager Building China Organization Capability Creating Effective Organizations Balancing performance and people development Building Transparency Developing a More Global Mindset Functional Manager How to shape and express strategy, and take the lead Need for fact based decision making, Have to be more explicit to communicate Move to process rather than personal commitment Understand how to collaborate and influence in the matrix organization positioning

Positioning of Novartis China University Turn over rate, deep dive survey Organization growth

Program design base on target audience: Program Category Target Audience Program List Accelerate Development Programs Key Talent BiMBA, ELP, LNW Leadership & Management Programs Managers M0, M1, M1XP, HPL, GLP Personal Development Programs All Associates PDP (22)

Novartis China University program structure-1: Accelerate Development Program , Leadership and Management program

Novartis China University program Structure-2: Personal Development Program

Novartis China University Provide training service base on organization needs Internal Service Model Novartis China University GCR GCPO BJ GCPO SH GCPO GZ GCPO CD OBU PO Sandoz OTC Animal Health ALCON Vaccines CNIBR SNPT NCO Corporate Learning China Business Leader with the integration of learning function, the NCU team will have direct contact with HRBP, which will enhance our understanding of the immediate business needs and challenges and we can react much faster to adapt our programs to the current business needs. To support HR team to strengthen the talent pipeline, we will broaden the target audience and will cover both high-potential and solid contributors within the organization. Talent Management Business School

Learning Management System LSO - Learning Solution

Contribution on Organization and Business Talent keep learning within Corporate University leadership development program step by step, especially as they face external opportunity 1 Talent Retention Build up strong employer brand within university and employee market 2 Talent Attraction Establish talent pipeline with different development program and prepare future leaders for Novartis China 3 Talent Pipeline Provide leadership development advice and workshop base on organization diagnosis People make different 4 Organization Effectiveness Target business issue to find solution through action learning project or assignment 5 Learning Solution

Thank you for your attention. STRUCTURE OF PRESENTATION: TELLING THE NOVARTIS STORY Introductory slide: Novartis at a glance. Patients: Strategic overview: Mission, aspirations, environmental trends, strategy, portfolio. 10 Years Novartis: Shaping Novartis, focusing on healthcare. 2. Performance: Group: Superior performance over 10 years, 2005 results. Divisions: Pharmaceuticals (2 slides), V&D, Sandoz, Consumer Health (1 slide each) 3. Innovation: Ôverview: innovation at Novartis. Development: drug approvals to date, key upcoming launches. Research: NIBR overview. FTY 720: Our new approach in practice. 4. Responsibility: Corporate Citizenship overview: The four pillars, the case for CC. CC pillars: one slide per pillar (access, people, business conduct, HSE). Reputation: business reputation, employee reputation. Summary slide: Novartis: Caring and Curing

Our focus is on patients Our purpose is to care and cure. We provide medicines to treat and prevent diseases, ease suffering and improve quality of life. Our purpose is to care and cure for patients by working together as an innovative leader and driver, a responsible corporate citizen and a performance-driven organization. 16

Novartis recognized as a great place to work

Program Design & Delivery Process NCU sums up all training program to present in Corporate Learning & HRBM NCU collaborate with vendor to improve program base on feedback NCU work with vendor on program design NCU announce yearly training plan to all participants NCU introduce program by December NCU Program Design & Delivery Training Follow-up HRBP HRBP work with NCU to introduce program to associates Associates Manager HRBP provide nomination name list to NCU in Apr Talent discuss development plan with line manager in Q1 Participants take part in training Line manager finalize nomination with HRBP support Line manager follow up with NCU and HRBP Support OTR & Nomination

Novartis China University Program Accelerate Development Program Functional Manager & Managers’ Manager readiness 1-2 to top management team Leading Novartis Way (CEIBS) Strategic Thinking / Organizational Leadership - 5 modules in 2 years Hi-potential Talent and High Performer readiness 3-5 to top management team Emerging Leaders Program (IMD) Personal Leadership Development Business Understanding International Management Skills - 9 modules in 3 years Hi-potential & Promotable Talent, RSM level managers Novartis-BiMBA (BiMBA) Expand Business Knowledge - 10 modules in 18 months our objective is to support execution of business strategies: the program design is focus on business strategies and challenges that we are facing globally and locally, we tried to help managers to translate corporate strategy into action, and to build a link between global and local. We invite corporate speakers from Basel (Roger Sawhney, Head of Strategic Planning; Stephan Mumenthela, Head of Economic Affairs and JBro) to be guest speakers to explain the 'whys' behind corporate strategies, the current thinking and concerns from corporate, etc. The interactions with corporate leaders enhance understanding of the rationale of corporate strategies; facilitate our managers to translate and interpret corporate strategies into local execution plans; and increase the exposure to senior management from different cultural backgrounds; we are also responding quickly to changes in business environment and create new programs and adapt existing programs gearing towards the discussion on current business challenges

Novartis China University Program Leadership and Management Program Divisions Head and Their Direct Report Global Leadership Program ( Harvard Business School ) Business Challenge Leadership Development GCR PEC minus 1, other divisions management team member who has not taken part in GLP Impactful Leadership Program ( Harvard Business School ) Strategy Implementation Collaboration Building Growth Leaders Experience Manager who has taken part in M1 in 18 months Leading for Result (M1XP) Talking Through Issues Leading Across Boundaries Growing Your Team New Managers who’s on boarding 6-18 months Leading at Front Line (M1) Basic Knowledge on leadership and management Candidates to be managers in 6 months Management Foundation (M0) Understand the Novartis expectation on leadership behavior Get a first overview of our processes, especially the ones relating to people management we offer tailormade programs to different levels. GLP as an example, the whole china leadership team participate this program in the past 2 years. This year, the program theme is Government and Business, and we had need assessment interviews with various business leaders and Government Affairs experts including Kim Stratton, to get the global perspectives; we will do the need assessment interviews with China leadership team in Apr, and we would like to get your input on the program design and development of content and discussion topics, and it will be great to have you attending this program. We enhance the practicality of the program and will have an 80% discussion & debate + 20% teaching format. With our experience in last year program, our leaders enjoy the action learning session, which they work with their colleagues on some pressing matters and plan for action on monday when they go back to office.

Communication Novartis China University Website update Screen scan- NCU website Appreciate they spend much time on video shooting Feedback of each program on news letter