1. CONFIDENTIAL Blood - Performance Review 29 January 2015

2. 2 Pillar 1 Blood Donation and the Donor Experience

3. 3 Five blood donation challenges SUFFICIENCY OF SUPPLY  Cannot continue meeting demand by increasing frequency of donation only and must move towards a segmented management of the donor base MODERNISATION  Must modernise our sessions and the way we interact with donors to secure the donor base of the future ORGANISATION / WORKFORCE  Have an organisation structure fit for purpose and strengthen our front line management and planning CUSTOMER SERVICE  Exceed donors’ customer service expectations by improving our session experience and environment and addressing variation between teams EFFICIENCY  Change our collection model both in session and out of session to enable a step change in our productivity and have more flexibility to react to demand changes Further improve the quality and safety of our service to patients and donors

4. Progress / main milestones achieved in Challenges 1 and 2 Strategic initiatives  Slow down rate of decline of O neg donor base Progress/ Main milestones  Targets for O neg set and tracked monthly; Donor Plus (on-call) in place (5% signed up); Appointed “product manager” for O neg  Segmented management of donors by blood group  Interval Study  O neg donor base declining slower than overall donor base but below plan; marketing plan in place; exploring double dose red cells  Recruitment target of 50,000 achieved; results expected early 2017  Donor Portal  Modern Paperless Donor Journey  New donors awards  Launched end of Nov’13; c550,000 donors registered (150k target in first 12 months)  Donor Portal 2 to enhance and strengthen the portal is ongoing (end by Q3 2015)  Project in Discovery Phase; supplier appointed  Launched in July 2014 with limited complaints from donors Sufficiency Modernize  Connected sessions  4G ipads now distributed to blood collection teams; smartphones by July/Aug. 4

5. Progress / main milestones achieved in Challenge 3  Majority of the new organizational structure now implemented as planned with no disruption to blood supply  Pending roll-out of MAPS North Region (“go live” Feb’15) and new clinical & nursing structure  Project forecast to exceed the expected costs savings (£5,412k in OBC vs. current forecast of £5,775k)  Non recurring costs forecast to be lower than plan (£9,924k in OBC vs. £8,905 forecast)  Cultural change: action plan and leadership commitments agreed and tracked at SMT every 2 months  Scorecards for Ops&Nursing now live and being used by teams  Scorecards for Marketing being developed  Performance management has been part of BDOD training  Improvement of planning tools and skills will be linked to the new Planning and Control Systems Tools (collections will follow the demand and the manufacturing modules)  Appointment of external person to National Planning Manager BDOD – “Smarter” planning Effective performance mgment 5

6. Progress / main milestones achieved in Challenges 4 and 5 Strategic initiatives  Staff behaviours Progress/ Main milestones  Delayed due to lack of capacity  Panel Segmentation  Volunteers  c80% of teams now trained on the three phases of Customer Service Improvement; donor satisfaction above target  Contact details now gathered and stored  Initial training sessions to volunteers completed with positive feedback  Session Consolidation  Reducing non donor facing time  Collecting more in static centres  Stage 1: WEDC/Kings Norton/Leeds went live in April’14 and Oct’14; on track to deliver savings  Stage 2 Business Case expected Jan’15  “Leaner” set up/pack down process being rolled- out nationally, at the same time as the standardization of the planning assumptions  Static centres expected to collect c28k more units in 14/15 vs. 13/14 (+15% YOY)  Platelets strategy: on track to reduce to 60% CD by end of 2015/16 Customer Services Productivity 6

7. 7 Pillar 2 Manufacturing Operations

8. 8 Manufacturing operations: 4 challenges SUFFICIENCY OF SUPPLY  Increase OTIF to 99%, including specialist components  Improve ability to meet complex patient requirements  Maximise the use of every donation MODERNISATION  Increase levels of automation to Reduce errors Reduce waste Increase efficiency of the supply change ORGANISATION/WORKFORCE  Embed a culture of quality and safety (zero major)  Develop a customer focused, flexible, innovative and multi-skilled workforce EFFICIENCY  Further increase processing and testing productivity above 12,000 units/FTE/year and 28,000 units/FTE/year respectively  Optimize asset utilisation Further improve the quality and safety of our service to patients and donors

9. Progress / main milestones expected Strategic initiatives  Introduce Planning and Control Systems Progress/ Main milestones  It will be part of the business case for consolidating the number of processing sites  Introduce standard scheduling and manufacturing techniques  On track to go live with the demand module and VMI functionality in January 2015  Automation  Consolidation of processing sites  Options for automatic labelling being assessed and piloted in 2015/16  On-going as part of BAU  Target date for business case May/ July 2015 Sufficiency  Modernisation of donors records  Collective consultation completed  Recruitment in Manchester & Filton started 9  Lean  Being completed as part of the business case to consolidate the number of processing sites  Standardize grading of staff in manufacturing Modernize Workforce Efficiency  Expected in 2015/16  Number of majors YTD 0  Personal development plans: quality and safety

10. Performance on strategic targets (1/2) Blood Donation Strategic Targets13/14 actual 14/15 YTD Plan – Month 10 14/15 YTD Actual Month 10 zero days where stock is below 3 days for any blood group 000 N. of occasions where opening stock of platelets (for any blood group) is below average daily demand 0044 * Number of donors donating over the last 12 months941,458910,798901,244 Frequency of donation (overall)1.90 O neg donors donating over the last 12 months107,854107,084105,619 Frequency of donation of O neg donors1.981.931.97 Donor recruitment183,676138,406131,711 % of donors scoring >= 9/10 in overall satisfaction67.6%69.0%71.0% Complainants per million donations6,0075,2005,661 10 * Change to metric vs. last year; now tracked by blood group

11. Performance on strategic targets (2/2) Blood Donation Strategic Targets13/14 actual 14/15 YTD Plan – Month 10 14/15 YTD Actual Month 10 Zero critical and major non compliance at external inspection 600 Number of faints per 10,000 donors bled164160163 Number of rebleeds per 10,000 donors bled393033 OTIF93.4%96%94.9% Blood Collection Productivity (units/FTE/year)1,2911,3521,328 Manufacturing productivity9,4239,4989,806 Testing productivity20,82722,22422,935 % of collections in donor centres10.5%12.0%12.9% % of 9 bed sessionsn.a.47%54.2% 11

12. Blood Donation financial performance 12 Total pay and non pay (£m) -0.7%-3.5%-3.4%-5.5% YOY, % Total WTE, excluding overtime and agency (number, end of year) -3.5%-4.2%-12.5%-10.0% YOY, %  Over last 3 years, blood donation is on track to deliver: A reduction of total spend of £9.3m (-7.4%) A reduction of staff by c390 WTE (-19%)

13. Manufacturing and testing financial performance 13 Total pay and non pay (£m) -0.9%-9.5%-1.9%-4.5% YOY, % Total WTE, excluding overtime and agency (number) 0.5%-5.8%+1.3%-3.7% YOY, %  Over last 3 years, manufacturing and testing is on track to deliver: A reduction of total spend of £11.6m (-14%) A reduction of staff by c35 WTE (-4%)

14. Pillar 3 Customer Service and the Hospital Interface

15. Hospital satisfaction

16. Hospital feedback is positive but some areas need improvement What do hospitals want to improve?  68% top-box satisfaction score  ability to provide a safe, sufficient and cost-effective blood supply is well recognised  strong clinical and technical support services  educational support / PBM  electronic interfaces: OBOS, SPiCE  regional variation in satisfaction, large hospitals less satisfied due to more complex needs Blood supply  Availability of specialist components  Manufacturing changes (planning and control improvements, standardised systems, site consolidation, 24/7 working, LEAN): 2015-17 Transport  Tailored service for large hospitals  TMS 2014, VMI roll-out 2015/16, logistics review 2015 RCI  improved turnaround times  SPICE - 90% of test results online: 2014  sample logistics pilot: Q2.15  extended working day  pilots completed 2014, roll-out 2015 Digital interfaces  Improved website: Q3.14  Integrated systems for ordering and invoicing  OBOS expansion: Q3.15  Orders to Cash: Q4.16 Targeted customer service intervention What do hospitals think of NHSBT?

17. In summary 17  Overall, Blood Supply is on track to deliver the strategic initiatives approved as part of Blood Donation Strategy, and planning has commenced to deliver Blood Supply 2020 strategy  Over the last 3 years, blood supply is on track to reduce total spend by £20.9m (-11.6%) and staffing by 425 WTEs (-14.6%) which has enabled NHSBT to maintain the price of red blood cells to hospitals; this has been achieved in a context of demand for red blood cells declining by c10% and cost pressures  Increased focus and actions are being taken to continue slowing down the decline of the donor base, specially O neg, reduce donors complaints and increase OTIF performance