Contributing to a better quality of life

1. Contributing to a better quality of life And more variations in the written language

2. Pioneers in healthcare • Nurse Elise Sørensen recognises a need • Primitive ostomy bags are the standard • World’s 1st disposable bag in 1954 = independence • Coloplast sets new standard

3. Defining Coloplast Coloplast products and services help patients achieve greater independence from medical challenges in 5 areas:Ostomy care, Continence care, Wound care, Skin Health and Breast care.

4. Coloplast spans the world • 6000+ employees • Subsidiaries in 25 countries • Distributors worldwide • Manufacturing facilities in China, Costa Rica, Denmark, Germany, Hungary and the U.S.

5. Coloplast’s values As individuals and as an organisation we: • Are customer driven • Are quality conscious in all we do • Have a fair and respectful management style • Learn and share • Have a passion for our business ... and we strongly believe that the road to outstanding results is shorter when you have fun on the way

6. More than 6000 committed employees Our employees are: • Independent thinkers • Willing to take on responsibility • Committed to development • The key drivers of their own job performance • Given the resources they need to succeed

7. Revenue mDKK 10.000 9.000 8.000 7.000 6.000 5.000 4.000 3.000 2.000 1.000 0 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 08 goal 04 90 91 92 93 94 95 96 97 98 99 00 01 02 03 Development in turnover (1989-2004) Without exception, Coloplast has increased turnover every year since 1957. In 2003, the goal for 2008 was set at DKK 9 billion.

8. Revenue by geographical regions Rest of the World 6% Europe 81% The Americas 13% Revenue per region • 81% of total turnover is generated from sales in the European Market • The Americas account for 13% • Rest of the World. This region only accounts for 6% of total sales. It is, however, the fastest growing segment.

9. A new performance appraisal Focus and transparency in business performance & behaviour

10. Introducing Leadership/Employee Competences • We need to continuously improve everything we do to meet our business objectives • This includes improving HOW we achieve our results • We are introducing Leadership/Employee Competences to improve our business behaviour • We will expect this behaviour from our managers and employees • We will evaluate our employees against these behaviours • we will develop our employees towards these behaviours • We will use the implementaton of the Leadership/Employee Competences to structure and refocus the Performance Appraisal in Coloplast

11. Restructuring the Performance Appraisal • The focus of the new performance appraisal is 3-fold for ALL employees and managers: • Increased focus and evaluation on business performance • Increased focus and evaluation on business behaviour • Increased focus on development of all employees for continuous improvement

12. The Leadership Competences- for managers with personnel responsibility • Visioning and Directing • Holistic Business Understanding • Strategic Thinking • Mobilising People • Growing People • Team Leadership • Developing organisational capabilities and teamwork • High Performance Execution • Personal ownership • Results orientation • Accountability

13. The Employee Competences- for managers and employees without personnel responsibility • Commitment • Cooperation • Change Willingness • Independence • Initiative • Customer Orientation • Knowledge Sharing

14. Leadership/Employee Competency Assessment Business Performance Assessment The Performance Appraisal in a process view Objectives for the coming year Summary of Assessment Job Assessment Follow up Personal Development Plan IT support system

15. Assessing leadership/employee behaviour 180/360 Degree evaluation Other way that is perceived fair and respectful Leadership/Employee Competency Assessment Conclusions from Assessment Personal Development Plan Follow - up Top-Down Assessment Dialogue based Assessment It is recommended that you start by using thisapproach in order to share the same assumptions.Then you can decide your own assessment method. Corporate HR is developing a 360 degree appraisal tool.

16. Training and Development • From a Corporate perspective the Leadership Competences are supported by the following programmes • Coloplast Business Programme - CBP • Coloplast Management Programme - CMP • Executive Leadership Programme - ELP (New programme) • Remaining training and development activities will be supported by local HR

17. Presentation Performance Appraisal database - 3 steps • Preparation • Manager • Employee Individual preparation tobe made in the database Performance Appraisal Dialogue between manager and employee • Conclusions and minutes • Manager writes minutes and approves • Employee comments and approves • Managers superior comments and approves Conclusions and minutes in database

19. Leadership Competency Assessment      Fails to meet expectations Needs improvement Meets expectations Exceeds expectations Outstanding VISIONING and DIRECTING Summary of evidence Holistic Business Understanding Assesses the implications of decisions and actions relative to relevant stakeholders  Demonstrates a strong commitment toward service, quality and customer satisfaction and loyalty  Takes calculated risks  Balances breakthrough thinking with the ongoing needs of the business  Is able to communicate a vision for the future  StrategicThinking Demonstrates understanding of how business strategies and tactics work in the market place  Explores new possibilities and approaches issues differently  Anticipates and reacts to future trends and directional shifts in the market place  MOBILISING PEOPLE Summary of evidence Growing People Involves others in the formulation of plans and decisions affecting their work  Delegates the necessary authority to employees  Creates a challenging workplace  Developsemployees  Team Leadership Appreciates the contribution from everyone in the group/team  Promotes co-operation within the team  Developing organisational capabilities and teamwork Promotes co-operation between groups  Promotes working across functions, departments and countries  HIGH PERFORMANCE EXECUTION Summary of evidence Personal ownership Takes and accepts responsibility  Seeks feedback to improve performance  Shows confidence  Takes initiative  Result orientation Admits and allows mistakes  Is able to prioritise and focus on value creation (EP, ESLM, CSLM, Waste, etc)  Recognises and reacts to achieved results (both over- and underperformance)  Sets high demands for own job performance and meets these  Gives constructive feedback  Sets clear and ambitious targets and follows up on these  Accountability Delivers on promise (walks the talk)  Ensures that feedback is given down and communicated up 

20. What are SMART objectives? SMART objectives is a way of setting objectives based on criteria, that ensures the objectives are: Specific - specify the objective as precisely as possible Measureable - how do you measure that the objective has been reached? Accepted/Ambitious - is the objective accepted, agreed and ambitious? Realistic - is objective realistic when considering time and ressources available? Time Based - Set specific deadlines for objective fulfilment

21. Hvorfor indgår SMART mål i MUS? • SMART mål udstikker en klar retning og prioritering af nøgleopgaver, så leder og medarbejder ved, hvad de skal ”løbes” efter. • SMART mål er lette at følge op • SMART mål er jobmål og ikke en aktivitets- eller projektplan • SMART mål afspejler klare, gensidige forventninger, hvilket gør det lettere for os både at være medarbejder og leder

22. Hvordan fastsætter man 1-årige SMART mål? Hvilke 3-5 områder er kritiske i jobbet i det kommende år? Definition af et SMART mål for hvert område Prioriter målene ved procentvis vægtning ! Eksempel

23. Other initiatives • Transparent career paths • Identification of C-players • Identification of talents • Linkage between performance/competences and pay • Organisational based competence development programme • Gap analysis -globally

24. Why has this process been initiated? • We say we support 3 career paths (line, project and specialist), but what does that mean in practice? • We need a clearer and more transparent structure for managers and employees to work with • We want to be able to communicate the ”who, what and how” of career progression and possibilities in Coloplast, both internally and externally • We want to clarify what it takes to progress career wise in Coloplast • We want linkages between competences, qualifications required (generic) in any given job and actual position level in the organisation • We want to create linkages between career levels and potential compensation & benefit possibilities • We want to link behaviour to career levels and subsequently assess and evaluate this for present and future career positions

25. Project Management Line Management Specialist Executive Vice President Senior Vice President Vice President.. Chief .. Manager Project Director Director.. Senior.. Manager Head of .. Senior Project Manager Encompasses process owners or responsibles in departments etc. ..Manager Team Manager Project Manager All other employees 3 career paths in Coloplast with Titles Position Level A B C D E F G

26. Key responsibilities LINE MANAGEMENT • To set targets, develop strategies and activities • To create results through and with employees whom you are responsible for • To develop organisation, employees, competences and structure • To support projects/processes by allocating competent resources PROJECT MANAGEMENT • To set targets and ensure target achievement with the employees allocated to the project • To manage, drive, develop and coordinate project/process with cross functional complexity • To make competency and resource needs visible SPECIALIST • To set targets for competences and ensure target achievement • To act as expert and drive development and utilisation of relevant professional expertise for Coloplast • To support projects/processes by utilising and sharing knowledge