W O R K P L A C E

F U T U R E STHE CRYSTAL

February 12th, 2012

With thanks to our sponsors

2 – 2 –

GOOD CHEMISTRYSodexo and AstraZeneca – strategic partnership in action

INTRODUCTION – NICK CATON

Head of EMEA FM Procurement &

Global Category Lead Energy, AstraZeneca

‘Big Four’ consultancy background, followed by move into industry

Joined AstraZeneca in 2010 to support major change programme in IS Procurement.

2012 focus as part of the EMEA FM business as they moved through a period of significant change through outsourcing and to drive the implementation of supplier ecosystem and service management thinking to support these changes.

2013 focus is to leverage a collaborative supplier environment and realise the benefits from outsourced service delivery model.

PHO

TO

REQ

UIR

ED

ASTRAZENECA STRATEGY AND CHALLENGES TO PHARMA INDUSTRY

EMEA FM PRIORITIES – A BALANCED SCORECARD APPROACH

Continuous Improvement

Achieve our financial targetsEnsure eFM is a great place to work

Connect with our customers

Focus to improve the Business Performance

Optimise services for our three value delivering customers

Scientist, Operator and Salesforce

• To be recognised internally & externally for Customer Service Excellence

• Improved Customer Service year on year

• All our services meet industry benchmark for service performance

• To ensure we have the right engagement and capability across total FM to deliver the broader business goals

• eFM costs to be at same ratio to AZ sales as 2012 and demonstrate improved eFM Service delivery vs external benchmarks

THE eFM SUPPLIER ECOSYSTEM

A collaborative partnership between 16 strategic partners

Leaders across the ecosystem have signed up to role-model the right behaviours to make this work

Regular Supplier Engagement & Networking Sessions (three per year) to drive partnering, collaboration and innovation

AstraZeneca supporting strong behaviours in sales pitches, formal recognition and commercial benefits

Facilitation and Intelligent Client role

THE PARTNERSHIP – SODEXO’S ROLE

Hyg

ien

e fa

cto

rs

Valu

e factors

Cleaning

Catering

Service desk

Innovation

Collaboration

Relationship development

Strategic im

portanceGrounds

maintenance

Reception/meeting room services

Mail and logistics

Technical services – Building fabric, M&E

INTRODUCTION – NEIL MURRAY

Managing Director, Sodexo Corporate Services IFM

Managing Director of the Corporate Services IFM segment within Sodexo UK&I

Responsible for the largest segment in Sodexo’s UK business with over 7,000 employees

Involved in a Group strategic project to move Sodexo to a Quality of Life service provider

THE STRATEGY

We focus on the Quality of Life of the consumers of our services

Best

Cheapest Closest

Product leadership

Consumer intimacy

Operational excellence

INNOVATING AND ADDING VALUE FOR ASTRAZENECA

Relationship model

Client - Sodexo

WhatDesign of the service, result specifications

HowProcess and methods,

organization for the execution of the service

How MuchPrice of the service,

cost to use

Specified by the client = the request

Has to be shared with the client, when « What  » is not specified – to be the base for commercial proposal design

Heart of Sodexo proposal

Sodexo proposal – as a consequence of previous

OutsourceClient buys capabilities

Improve

Change

Client buys expertise

Client buys results

WhyStrategic issues for the client : why our services

are important to them

PARTNERSHIP SUCCESS – THE SPECIFICS

Successfully collaborated with ecosystem to deliver financial imperatives through intelligent solutions

Enabled AstraZeneca to focus on core business and key drivers (e.g. R+D) by delivering the right environment to:

Attract and retain the best people

Focus them on high value activities such as research

Support the engagement of people e.g. Wellness

Supported innovation through on-site teams working in collaboration with the Client and ‘competitors’

Understood Client drivers and expectations through our ‘Clients for Life’ Key Account Management framework

Regularly measured consumer experience and engagement with improvement of contract KPIs and delivered a consistently high consumer experience in UK, Sweden and China

THE PARTNERSHIP – OUR LEARNINGS

12 –

Partnering doesn’t mean complacency or ‘on a plate’ growthLaboratory Instruments

Requires open and honest relationships, built on trust and mutual respect

A need for a mature approach to collaboration

IN SUMMARY

We mustn't allow the industry to become commoditised

FM holds key levers for business performance

The FM industry must now truly understand the core business landscape of its clients

The industry must adopt a B2C approach – not just B2B

13 –

Q&A

14 –