Agenda Vision How do we get there? Progress Mission American Red Cross Vision - Ensure that people everywhere can use their Red Cross training to save lives - Expand our disaster response to reach more people and deepen our services - Provide the best lifesaving blood products and services - Help more members of the military, veterans and their families - Help eliminate disease and teach communities to prepare for disasters across the country and around the world American Red Cross How Do We Get There? - Attain financial stability - Engage our staff and volunteers - Achieve the vision of One Red Cross - Continually earn the trust of the American public - Fulfill our mission every day American Red Cross How Do We Get There? - Attain financial stability - Engage our staff and volunteers - Achieve the vision of One Red Cross - Continually earn the trust of the American public - Fulfill our mission every day American Red Cross Operating Margins (58M) FY08 FY09 FY10 FY11 - Eliminated duplicate functions in the Chapters - Moved disaster response and fundraising to field - Improved Blood quality - Revitalized the brand - Revamped IT American . Red Cross RBC Transfusions (millions) RBC Transfusions in the United States 16 15 a ?g 3 Legend i Aduals ?t I 14 lg? ARC Estimate -AAmerican Red Cross Operating Margins (33M) FY13 FY14 FY15 - Biomed reduced costs but at a slower rate than revenue declined - Continued decline in demand - Decline in price Fundraising revenue declined due to lack of huge disasters American Red Cross 'b Biomed Savings Project Estimated Savings Collections Field Operations Support Other Functional Initiatives American Red Cross Operating Margins FY15 FY16 FY17 - Continue execution of cost cutting initiatives - Lowest cost provider in Biomed - Breakeven cost structure in Humanitarian Services during ?blue skies" - Increase contribution margins in PHSS Leverage our assets Post-FY17 target highest value donors American Red Cross k7. .1 Biomed Cost Cutting Reducing costs another $300 million over 3 years - Flattening and increasing spans of control - Moving to a fully functional model - Ensuring the profitability of each drive Focus on drives Set strict standards for each drive Encourage on-Iine and blood apps appointments - Increasing use of technology American Red Cross Biomed Technology - Collections - Self-service for donor history - Streamlined input using tablets for data entry - Less equipment to bring to drives - Hospitals - Amazon- like order entry - Shipment control American 1 .. Red Cross Fundraising Initiatives Near-term Initiatives Maximize Blue Sky initiatives Home Fire - Focus on end-of?year giving - Focus on asks - Cultivate and steward donors Keys to Long-term Success - Targeting donors with greatest potential - Enhancing the digital donor experience - Deploying a mobile first strategy - Investing in training for our fundraisers American . Red Cross Employee Volunteer Engagement Labor/Management Relations - National labor agreement - Focus on Collections Staff Scheduling Employee Communications Engage! - Local action planning meetings to drive improved engagement Training - 14% of employees accessed over 3,400 courses, videos books Examples: - Biomed Manutacturing Managers - Volunteer Management - New Supervisors American . ft Red Cross is. Employee Volunteer Engagement Talent Management - LEAD 4th year of program - Talent management reviews occurring throughout the organization Diversity - Provided Diversity Sensitivity and Awareness eLearning course - Launched The Ability Network Resource Group American Red Cross at One Red Cross Leverage chapter relationships - Regional Execs now represent entire ARC mission - Red Cross Local Boards are merging - Chapters are engaged in recruiting blood drive sponsors Sharing Assets - Real Estate - Fleet/Logistics - Warehousing Pilots - Testingintegrated blood sponsor recruiting - Testing integrated volunteer recruiting Goal - Deeper Targeted Donor Engagement American Red Cross How Do We Get There? - Attain financial stability - Engage our staff and volunteers - Achieve the vision of One Red Cross - Continually earn the trust of the American public - Fulfill our mission every day American Red Cross '35 Trust in the American Red Cross 85% 75% 65% 55?3.36 00? 9? {?90 eo? 9 9? 9? 9? Yo? $6.0 9?60 ?American Red Cross American Cancer Society Salvation Army American Heart Association ??-United Way American Red Cross 473i 3509/0 5% Red Cross Recall Based on those whee hueariing about the Red Cross in the past three months{94' *9 7 Much More Favorable I Much Less Favorable American u: Red Cross 'Trust - Spread good news - Represent the Red Cross with care and integrity - Treat donors and volunteers like heroes - Treat each other with kindness and respect American Red Cross How Do We Get There? - Attain financial stability - Engage our staff and volunteers - Achieve the vision of One Red Cross - Continually earn the trust of the American public - Fulfill our mission every day American Red Cross Training Communities, families and individuais are better prepared - 20% increase in people trained by 2017 American Red Cross Progress - FY 15 Results: - 1.6 million enrollees in free community based courses (49% increase) - 4.3 million enrollees in paid courses (18% increase) - 6% increase in mobile app downloads (surpassed 7 million total downloads) - Contribution margin 33% to $25 million American I - Red Cross Disaster Response There is a decrease in preventable deaths and injuries in the US. and around the world 25% decrease in death and injury from house fires by 2020 in the US. 520 million additional children vaccinated worldwide American Red Cross Progress - Home Fire Campaign: - 148,000 alarms installed 17,000 batteries replaced 59,000 escape plans completed 333,000 kids trained through pillow case project At least 28 confirmed lives saved - Measles and Rubella Campaign: - 215 million children vaccinated in the past year - Campaign in Liberia vaccinated more than 332,000 children this past spring American 33 Red Cross Blood Services Hospitals choose the American Red Cross for their blood supply because 0 - Our value - Our innovative service - The safety and quality of our products - Our reliability 0 20% increase in favorable ratings in overall hospital satisfaction by 2017 American Red Cross Progress - Winning new volume at a rate of 1.75 to 1 - University of California; Kindred (Los Angeles Dallas); HCA Midwest Health (Kansas City); Fatima 8: Roger Williams (Rl) - Making outstanding progress on quality: - No facility inspections classified as Official Action Indicated (OAI) in over 5 years - Total problems down 35% in last five years - Hospital satisfaction favorable ratings increased 10% in FY15 American Red Cross Senices to the Armed Forces . E3 4. The members of the 9 military, veterans and their families derive comfort and hope from our services Maintain a 93% favorable rating from the military members that we serve. American Red Cross v.33" Progress - Provided 364,000 emergency services to families in FY 2015 - Emergency Communication Center centralization is on time and on budget - Overall client satisfaction above 93% (extremely favorable and favorable scores) American Red Cross