3rd IMPULSE Scientific Workshop

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3rd IMPULSE Scientific Workshop

• Procter Gamble, Brussels
• October 2008

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Patrizio Ricci

• Italian
• 13 yrs with PG in Brussels Cincinnati many
  extended stay across EMEA
• Engineering Associate Director WE Fabric Care
  Global Process Breakthrough
• Dry Laundry ( Ariel / Daz / Bolt )
• Laundry Liquids (Ariel, Bold, Dash, Dreft)
• Fabric Enhancers (Lenor, Downy)
• Laundry Unit Dose ( Ariel tabs )
• Bleach (Ace)
• Hand Dish (Fairy, Dreft)
• 8 Fluids Plants around the world

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Topics

• PG
• Engineering
• Process Breakthrough
• A changing environment
• Sustainability
• Connect and Develop

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Some more facts

• 138,000 employees
• Operating in over 80 countries worldwide
• Active in every market in Western Europe
• Our European headquarters in Geneva, Switzerland.
  
• Several European Technical Centers
• In Brussel Innovation Center gt800 RD, gt
  100 Engineers, gt 30 nationalities.

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Company structure
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What is a good engineer ?
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Where do we work
Percentage of Engineering in PGs four
organizations
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4 core competencies
1. Technology Innovate 2. Capital
Management Provide 3.
Health, Safety Environment
Protect 4. Capability Building Improve
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Process Breakthrough

We go where no one has gone before....
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PROCESS BREAKTHROUGH

We want to explore uncharted territory, find
breakthrough process solutions , and with our
partners, develop discontinuous technologies that
meet our customers consumers needs and provide
competitive advantage for our Company.
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THE 1992 EFFECT
A Fast Moving Consumer Good CompanyIn a fast
Moving World
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Mr Proper Bathroom Production Sites 1992
Global RD Surface Care
Manchester
Worms Plant
Amiens
Alizol (F) - contractor
Gattatico (I)
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Key changes in 1992

• Elimination of intra EU Custom
• Cabotage Full truck loads in both directions
• Decrease of intra EU Road Transport cost

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Mr Proper Bathroom Production Sites 2008
Global RD Surface Care
Gattatico (I)
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Advantages of central Sourcing

• Economies of scale on Capital Expenditure
  Operating Cost
• Easier Product Technology Standardization (one
  plant -gt one technology platform -gt one product
  for the whole of Europe)
• Concentrate RD Engineering Supply Chain
  Management effort
• Faster Continental Roll-outs

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The World is Changing Fast!How Far on 500 Worth
of Diesel?
1999
2001
2004
2008
2007
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What else is changing ?

• More product customization
• Faster response to local market demands
• Globalization of the market
• Higher cost pressure
• Focus on Sustainability

• And on top we want
• More Flexible unit Easy to relocate
• Less capital..

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Changing world

• We need to anticipate the game, be ready with
  our engineers to solve the challenges that are
  not defined yet, using technologies that havent
  yet been invented in order to solve problems we
  dont even know are problems yet.

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Pace of Innovation
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Sustainability
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Sustainability on Leadership Agenda

• We are committed to helping solve the worlds
  sustainability challenges. We do this through
  product innovations, reducing the environmental
  footprint of our operations and through our
  contributions to help children live, learn and
  thrive. Companies like PG can be a force for
  good in the world. This is a responsibility and
  an opportunity that we embrace.

A. G. Lafley, Chairman of the Board and Chief
Executive
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Current Landscape
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Defining Sustainability

• Sustainable development is a very simple idea.
  It is about ensuring a better quality of life for
  everyone, now and for generations to come.
• Department of the Environment,
• Transport and the Regions,
• London, UK.
• February 98

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Sustainability
The synergy between Economic Development, Environm
ental Protection and Social Responsibility.
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History of Sustainability at PG

• PG pioneered environmental reporting (1970s)
• Environmental Quality Policy EQ Reporting (1992)
• One of the first companies to form a corporate
  sustainability department and publish a
  sustainability report (1999)
• Introduced global corporate cause Live, Learn
  and Thrive (2005)
• External recognition for our work on
  sustainability
• PG ranked as sector leader in the DJSI 7 out of
  9 years
• Listed on the FTSE4Good ever since the index was
  devised
• 1 among household and personal product companies
  by Fortune (02/06)
• Americas Second Harvest Donor of the Year (2006
  AND 2007)

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Built Into PGs Purpose and Values

• PG Purpose
• We provide branded products and services of
  superior quality and value that improve the lives
  of the worlds consumers, now and for generations
  to come.
• Principles
• We incorporate sustainability into our products,
  packaging and operations.

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PG Sustainability Matrix
Environmental
Social
Innovative Distribution
Opportunity
Retailer Sustainability
Tide Cold Water Ariel Cool clean Future Friendly
Child Development
Older population products
Eco-efficiency cost savings
Environmental Quality policy management system
Worker Health Safety
Product Safety Policy
Values and Policies Worldwide Business Conduct
Manual
Responsibility
Product Safety assessment tools (Risk Assessment,
LCA, PSAT, etc)
Supplier sustainability guidelines compliance
Sustainable Forestry
Community programs Disaster Relief Preparedness
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PGs Sustainability 2012 Goals

• Develop and market at least 20 billion dollars
  of sustainable innovation products.
• Complete a decade-long program of reducing the
  greenhouse gas emissions, disposed waste, and
  energy and water consumption of our own
  operations by at least 10 each.
• Improve the lives of hundreds of millions of
  children in need around the world through our
  global Cause program - Live, Learn and Thrive.

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So how do we face all these challenges ?
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Open Innovation or CD
PGs innovation business model to leverage
external innovation assets.
Finding innovative products, packaging,
technologies, processes and commercial
connections from anywhere in the world.
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Examples from the CD Focus Areas

• Disruptive Technologies
• Plasma technology to modify interior surface of
  bottles to get the last drop out.

• Cooked Technologies
• Reapplication of electro-static spray technology
  from car painting to makeup application.

• Ready To Go Product Ideas
• Swiffer Dusters from Unicharm. We also leveraged
  their production lines and advertising.

• Commercial Connection
• Partnership with Clorox/Glad.

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The CD Concept
gtTwo Millions
8,000 PG Researchers
5 Billion/yr New Sales
More than 2,000,000 researchers worldwide in
science areas of interest to PG.
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This is why we are here ? Let us innovate
together
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