The Role of Automated Collections in a Changing Industry Panel Discussion 2010 ADRP Conference May 20, 2010 ~ Seattle, WA

2 Agenda Welcome & Introductions Data –Historical Review –Changes in Demand Strategies for Improvement Questions from the Audience

3 Panelists FACILITATOR John Hagins ADRP President CEO, Greater Alleghanies Region, American Red Cross Mitzi Robbins Director, Business Design North American Blood Bank Haemonetics Corporation Jacque Graham, MT (ASCP) Director, NA Sales and Commercialization Automated Collections CaridianBCT Ron Sheehan Senior Business Design Analyst Haemonetics Corporation Tom Johnson Senior National Account Manager CaridianBCT Michael Reale Director of Software Development – Blood Center Products Haemonetics Corporation Michael Gendreau Senior Manager, Worldwide Geographic Marketing, Automated Collections CaridianBCT

The Data: Historical Review Changing Demand

5 Statistics Summary – Hemasphere Data 42 Blood Centers 172 Mobile Collection Operations 621 Total Collection Operations 276,233 Completed Blood Drives 6,435,221 Units Collected Collected Data Since 2006

6 Overall Drive Statistics – WB & 2RBCs Total number of drives by year Total number of 2RBC drives by year Mobiles 138, , , ,999 Fixed 89,335 97, , ,234 Totals 228, , , ,233 % of Mobile Drives61% 60%58% Mob 2RBC 66,992 79,015 92,184 95,122 FS 2RBC 43,340 49,012 56,916 61,356 Totals 110, , , ,478 % of Mobiles61%62% 61%

7 Overall Drive Statistics – Platelets & Plasma Mob Plat/Plas FS Plat/Plas 10,111 10,485 12,387 14,010 Totals 10,533 10,582 12,657 14,448 % of Mobiles4%1%2%3% Total number of Plat/Plas drives by year Mob Plasma 2,550 3,407 3,997 4,782 FS Plasma 13,066 14,608 19,409 21,459 Totals 15,616 18,015 23,406 26,241 % of Mobiles16%19%17%18% Mob Platelets1,8441,505 2,9022,599 FS Platelets 45,47853,42964,92171,593 Totals 47,322 54,934 67,823 74,192 % of Mobiles4%3%4% Total number of Platelet drives by year Total number of Plasma drives by year

8 Apheresis Drive Distribution

9 Completed Drives with 2RBC Data ( Mobiles )

10 Completed Drives with Platelet Data

11 Completed Drives with Plasma Data

12 2RBCs – Projected vs. Performed (Mobiles)

13 2RBCs – Projected vs. Performed ( Fixed Sites )

The Following Issues Were Ranked Highest (Scale of 1 [low] to 10 [high]) in Impact of What’s Not Working Well

With regard to your blood center operations, is it your experience/opinion that overall red cell utilization in your service area has declined in 2009? 13 participants out of 24 responded “yes” 11 participants out of 24 responded “no”

My blood center has major concerns about the growing surplus of red cells. In this ASC online survey, 87% of participants agreed with this statement. At the GSABC members meeting in March 2009, only 52% had concerns about the growing numbers of red cell surplus.

Has your blood center had to cut back on collections in 2009?

Quarterly RBC Demand Forecast Data courtesy of BCA

RBC Demand Change – Same quarter, prior year

Data courtesy of BCA Quarterly Platelet Equivalent Demand

Data courtesy of BCA Quarterly SDP Platelet Demand

CaridianBCT Approach

Session Objectives Summarize “what we’re hearing from you” - Michael Automation strategies with changes in the market – Jacque CaridianBCT solutions - All 23

What we are hearing from you Hospitals –Fewer elective surgeries (most profitable segment) –Large number hospitals losing money Budget cuts and capital spending delays Pressure on blood pricing –Transfusion thresholds being challenged

What we are hearing from you Blood Banks –“Glut” of some blood products aided by: Elective surgery deferrals Increased split rates for platelets Hospital blood utilization programs –Selling of products outside of traditional territories Driving prices down –Historical operating margins of 2 – 4% being threatened Cost cutting Mechanisms for increased efficiency Diversification of revenue streams

What we are hearing from you Blood Market –Platelets - demand is slightly up –Expected to continue in this direction –RBCs - demand is down –Slightly up in some regions –Expected to be flat »Dependent on blood usage trends –Plasma – FFP is flat. Fractioned plasma is currently flat. –Fractioned plasma expected to increase –Automation usage is tending to increase - slightly Flexibility and efficiency

Blood Center Strategy FROM –Maximize efficiency of less frequent donors –Maximize availability of products –Collect as many type O red cells as possible TO –Right product, right time, right place, right donor

Going forward…. Use automation to: –Maximize efficiency –Getting more from less or the same number of donors Focus on specific blood types/components Eliminate inefficient cost 28

And what about recruitment? Recruit more automation/not less –Efficiency of automation Recruitment will be more complex –Right product – most efficient –Right time - based on fluctuating demand –Right place – mobile vs. fixed –Right donor - type specific More education Pedigree programs 29

CaridianBCT Solutions

Donor Base Analysis DonorMax Vista 31

Donor Base Analysis Tool (DBA) The “Donor Base Analysis Tool” provides donor recruitment/conversion goals based on: –Donor base data –Blood center collection goals –Blood type and gender Outputs –Daily automation/conversion goals by: Product type Blood type

Donor Base Analysis 33 Platelet Donors from WBDRBC Donors from WBcRBC from Plt DonorscPlasma from Plt Donors Conversion Rate Default Estimate Center Estimate Default Estimate Center Estimate Default EstimateCenter Estimate Default Estimate Center Estimate 10%2.3%10%2.5%30%12.0%30%31.5% Blood Type MalesFemales Estimate d Male Platelet Donors Estimate d Female Platelet Donors MalesFemales Estimate d Male dRBC Donors Estimate d Female dRBC Donors MalesFemales Estimated Male cRBC Donors Estimate d Female cRBC Donors MalesFemales Estimate d Male cPlasma Donors Estimate d Female cPlasma Donors O Positive 00yy868775yy O Negative 00yy179173yy A Positiveyy1, A Negativeyy B Positiveyy327287yy B Negativeyy5750yy AB Positiveyy yy AB Negativeyy yy3227 Total3,3602,

Donor Base Analysis 34 Step 2: Annual Goals/Collections Summary PlateletsRBCsPlasma Current Year Projected Collections47,56533,2953,567 Next Year Collection Goals52,26936,5883,920 Annual Collection Variance(4,704)(3,293)(353) Weekly Collection Variance(90)(63)(7) Daily Collection Variance(13)(9)(1) Step 4: Donor Conversions Needed per Day Work Days per Week7.0 WB Donor Conversions to SDPs9.3 Annual Holidays6 WB Donor Conversions to dRBCs3.2 Annual Work Days358 Additional RBCs from Plt Donors4.6 Default Annual WDs280 Additional Plasma from Plt Donors1.0 Step 5: Additional Component Revenue Platelets$ $ $1,680,075 Total Revenue $2,432,741 dRBCs$ $ $357,329 cRBCs$ $ $367,114 cPlasma$80.00 $28,224

DonorMAX DonorMAX includes: –Analysis Tools Donor base analysis and others –Staff Educational Tools –Marketing Tools –“MAX” Educate and motivate donors on automated collections Interactive donor kiosk Tele-recruitment tool 35 A blood center program designed to maximize the efficiency of your existing donor base:

Vista Information System The Vista Information System automates donor eligibility processes and optimizes donations. The Vista system: Identifies the optimal collection for each donor Tracks and manages blood component loss Automates the creation of procedure records Facilitates instant procedure priority updates on multiple Trima Accel devices Improves and standardizes processes

37 Produce an Ample, Safe Blood Supply Increase Donor Frequency Channel Donors to Preferred Donation Methods Collect More Products per Donation Summary

Haemonetics Approach & Solutions

Our Blood Management Definition Preventing a blood transfusion to the patient who doesn’t need one Providing the right blood product, at the right time, in the right dose, to the right patient who does 39

A world-class blood management program is built on three pillars Information Management Services Devices Optimal Blood Management

Point of Care Pre Intra Post Hospital BB Inventory Transfusion Preparation Hospital Recruitment & Interview Blood Collection Processing & Testing Inventory & Distribution Sponsor Management Blood Center Our portfolio creates a total embodiment of blood management solutions for our customers Devices Services IMPACT TM Online Information Management Lean Process Improvement & Six Sigma Programs Collection Program Optimization Donor Recruitment & Conversion Training Transfusion Management Programs PAD Management Production & Cost Optimization Mobile Setup Modeling Hemostasis Management Anemia Management 41

Historical Journey 42

Automation From the 50,000’ Level Differentiation difficult Difficult to craft automation strategies Difficult to determine application of standardized practices Difficult to determine best strategy for decreasing CPUC Difficult to develop annual budget Difficult to quickly adapt to changing market drivers 43

Evolution of Automation Timely access to information at the granular level is increasingly important due to changing market drivers 44

Program provides an analysis of opportunities across departments, areas, regions, & teams METRICS Incremental Units Turns/ machine per month M/C Utilization Fleet Utilization MISSED OPPORTUNITIES BY Drive Team Lead Recruiter Region Fixed Site PROGRAM DIAGNOSTICS Potential by drive type % of R2 RTM goal collected Training Opportunities Turns by drive, recruiter, team lead, region % of Drives w/Automation DONATION TRENDS ABO Gender Drive Fixed site Frequency DONOR PRESENTING PATTERNS ABO Gender Frequency Draw Hour Mobile Fixed Site DRIVE OPERATIONS Machines/ drive Max RTM collections Staffing Needs CPUC Drive patterns by distance, size, etc. BLOOD CENTER Data from all sources Hemasphere, etc. EXPANSION SCENARIOS  Determine Collection Ramp Goals  Set Timeline  Determine intervals between sites  Apply Constraints  Set Run Rate Targets/Machine  Choose Options 45

Process Improvement Programs Consultative support available to implement process improvement solutions Experts available in: –Project and Program Management –Lean Manufacturing –Six Sigma –Recruitment –Collections 46

Questions?