TO
THE AUDIT AND COMPLIANCE COMMITTEE OF NOVARTIS AG, BASEL
We have performed evidence-gathering procedures on the following aspects of Corporate
Citizenship (CC) and Health, Safety and Environment (HSE) reporting of Novartis
AG, Basel and its consolidated subsidiaries (the Group), all for the year ended
December 31, 2005 (hereafter jointly referred to as the subject matter): | • | The
management and reporting processes for CC and HSE; | | • |
The HSE key figures “Novartis HSE Data 2005” on page 71 of the Novartis Annual
Report (the Report); | | • |
The CC key performance indicators in our assurance scope (see below). These indicators
are on page 49 of the Report. |
We have
evaluated the subject matter against the following criteria: the CC Policy including
the CC Guidelines and the Code of Conduct prepared by the Group, the CC and the
compliance reporting guidance and the principles summarized in the section “HSE
Reporting Principles” on page 70 which define the scope of the reporting, the
inherent lim-itations of accuracy and com-pleteness for the HSE information, and
the fact that the CC management process is in its fourth year of operation.
The Board of Directors of Novartis AG, Basel is responsible for both the subject
matter and the evaluation criteria. Our responsibility
is to report on the internal reporting processes, data and key figures for CC
and HSE based on our evidence- gathering procedures in accordance with the International
Framework for Assurance Engagements, approved Decem- | 
