The much-anticipated action-packed ORACLE LEGAL DISCLAIMER The following

The much-anticipated, action-packed… ORACLE LEGAL DISCLAIMER The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

THE INFORMATION COMPANY “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Oracle Advanced Planning An Overview for Nor. Cal OAUG Training Day 2006 Tom Greene Senior Solution Consultant West Commercial Apps Region

Today: Some ‘Tough Nuts to Crack’ Business trends are forcing you to consider new strategies TRENDS ADAPT YOUR BUSINESS MODEL Higher degree of uncertainty Get visibility to all demand Manage to uncertainty by postponing inventory Increased global competition Focus on core competency – Increase outsourcing Mass customization Move point of product differentiation closer to customers Focus on customer service to ensure brand loyalty Provide reliable and accurate commitments to customers Limited money to invest in IT Lower cost of ownership of apps

Traditional Approach Multi-step planning processes, high latency, limited collaboration CUSTOMERS SUPPLIERS Tier 2 Tier 1 Fax Paper Distribution Production Manufacturing plans Marketing ? Sales Manual reconciliation Mfg. Demand Planning Ÿ Response 1: Maintain Excess Inventory Ÿ Response 2: Reserve Production Capacity Ÿ Response 3: Expedite Everything! Long planning cycles Supply Planning Supply Chains built on INVENTORY “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Move to A More Competitive Model E-Business planning solution: zero latency, real-time collaboration CUSTOMERS SUPPLIERS Ÿ Enable closed loop collaborative planning processes across your value chain Tier 2 Tier 1 Portal Automated Exceptions Ÿ Make better decisions Marketing Manufacturing Sales Mfg. Ÿ Have complete supply chain visibility Demand Hub & Multidimensional analysis Consensus forecast and production plan S&OP Process Ÿ React immediately to disruptions in supply chain Single holistic plan Supply Planning Supply Chains built on INFORMATION instead of Inventory Business Intelligence “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

What Our Customers Say… Reduced inventories by 20%, increased market share from 50% to 80% “The most exciting feature of the system to a manufacturer is constraintbased planning. Oracle provides the ability to plan, including resource and material constraints, based on suppliers' inventories and capacities. ” – Mr. V. A. Raghu, Managing Director, Tube Investments Ltd. Replaced i 2 and cut planning cycles from weekly to daily “With Oracle E-Business Suite 11 i, we have moved from weekly to daily planning, which has significantly improved our response time. ” – Clair Walizer, Senior Developer and Analyst, Canon Virginia, Inc. Improved inventory turns by 37% “With help from Oracle's Advanced Supply Chain Planning (ASCP), we can now respond to customer change requests within 24 hours. The system also helps us check if our suppliers can supply us the components we need. Previously, we've had to collect this data manually using a lot of resources. ” – Tan Lai Tong , Business Management GM, TEC Ltd. “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Oracle Advanced Planning Solution “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Oracle Advanced Planning Complete e-business planning solution SCI Supply Chain Intelligence SNO Service Maintain Fulfill All Product, Customer, & Supplier Information Make Procure Plan Finance HR Order Sell Projects Market Develop From detail to summary Network Design Sales and Operations Planning DP Demand Planning Inventory Optimization IO Supply Chain & Manufacturing Planning ASCP Global Order Promising GOP Distribution Planning ASCP Production Scheduling PS SC Exception Management CP Collaborative Planning From short-term to long-term CP

Key Capabilities in Order of a ‘typical’ High-Tech Adoption Lifecycle Ÿ Sales and operations planning Ÿ Holistic planning and optimization Ÿ Zero downtime global order promising Ÿ Multi-tier collaborative planning Ÿ Inventory postponement optimization Ÿ Strategic network design Ÿ Real-time production scheduling “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Sales and Operations Planning “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Sales and Operations Planning Definition Ÿ Balancing supply and demand Ÿ Synchronization of all operational plans Ÿ Key outputs – – Consensus forecast Bookings forecast – new orders expected to be received Sales and allocations plan – expected shipments Production plan § Bookings forecast +/- changes in backlog = shipping forecast § Shipping forecast +/- changes in inventory = production plan “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Sales and Operations Planning Complete and integrated process INPUTS PLANNING Financial plan Budget plan Sales opportunities Trade promotions Ship and book history Current order backlog Inventory history Production backlog Customer forecasts PROCESS Inventory and service levels Demand Plan Capture all demand in one place Determine consensus forecast - Determine new product plan Exception management Supply Plan Balance supply, demand, and budgets: - Determine inventory targets - Determine supply plan - Determine allocations Evaluate and adjust plans Sales Plan Production Plan Bookings Forecast Management Reports OUTPUTS “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Sales and Operations Planning Key capabilities Ÿ Demand Hub – – Ÿ Drive to a consensus forecast – Ÿ Make allocation decisions while trading off service levels and cost Adapt and adjust to changing business conditions – – Ÿ Use analytics and intelligence to achieve a consensus demand Balance demand, supply, and budgets – Ÿ Capture all demand data in a central place Collaborate internally and externally Adjust demand or supply plan as conditions change Drive continuous improvement Integrated solution with built-in business intelligence “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

S&OP – Demand Hub Capture all historic and future demand in a single data store CUSTOMERS SUPPLIERS Ÿ Tier 2 Central repository for all demand information – – Tier 1 – – Portal – Internet Ÿ Configurable and extensible – ERP Transaction Flat file loads EDI Transactions – ERP Systems APIs Demand Hub Ÿ – Marketing Sales Spreadsheets, XML, EDI, portal Audit exceptions Integrated – Finance Meta data driven User-defined dimensions and hierarchies Open – Ÿ Customer and supplier forecasts POS data Sales and marketing forecasts Financial forecasts and budgets User-defined data (spreadsheets) Out-of-the-box loads for Oracle ERP Manufacturing “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

S&OP – Demand Planning Drive to accurate consensus forecast CUSTOMERS SUPPLIERS Ÿ Tier 2 Compare and consolidate disparate forecasts – Tier 1 Portal – Portal Automated exceptions Ÿ Internet Collaborative demand plan Improve forecast accuracy – – – Ÿ Demand Hub – Demand Planning Process Ÿ Marketing Sales Manufacturing Move from a regimented periodic to a continuous demand planning process Get real-time visibility to demand adjustments via internal collaboration Improve sales promotion planning – Finance Better statistical forecasts Forecast planning percentages for models and options Get visibility to customer demand changes Improve demand planning cycle time – Consensus forecast Sales, marketing, manufacturing, customers, suppliers, Point of Sale (in units or $$) Use multi-dimensional analysis to adjust, allocate, and rollup – Forecasting integrated with promotion planning Measure effectiveness

S&OP – Demand Planning Drive to accurate consensus forecast Forecast Collaboration Process CUSTOMERS Sales Forecast Ÿ Manage product life cycles more effectively, with your trading partners – – Ÿ Synchronize YOU Improve delivery performance – Sales/Order Forecast – Publish (optional) Ÿ – – Sales Forecast SUPPLIERS Include customers in forecasting process Publish sales forecast to suppliers at any tier Reduce non-value added costs and exception overload – Synchronize Introduction of new products Phase-out of obsolete products User-defined exceptions Proactive notifications Automated exception handling via workflow

“This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

S&OP – Alcoa COMPANY PROFILE Ÿ Ÿ Ÿ Ÿ BEFORE ORACLE $20. 3 billion in revenues 350 operating locations in 40 countries 127, 000 Alcoans worldwide 4 Major Rolling Mills - Davenport, Iowa; Lancaster, Pennsylvania; Texarkana, Texas; San Antonio, Texas Heat Treating and Blanking Center - Danville, Illinois Customer service and distribution centers Irvine, California; Hutchinson, Kansas Extruded Tube for Heat Exchangers - St. Louis. Missouri; Monterey, Mexico Ÿ Ÿ Spreadsheets, not integrated with legacy system, nor with execution systems Manual forecast smoothing No system supported sales and operations planning Monthly planning cycle, insufficient accuracy in order promise dates AFTER ORACLE Ÿ Ÿ Determines allocation to produce most profitable product mix within existing constraints Performs all planning at the family level Powerful Integration of supply/demand picture – Demand Planning & ASCP supply and inventory data – Drill Down and roll-up capability – Reporting tools and data analysis – Export to excel or HTML pages Supports the S&OP Process – Demand planning analysis and pre-work – Operations planning analysis and pre-work – S&OP composite picture in real time during review sessions Source: Alcoa Presentation at Appsworld 2004 Benefits • Reduced plan cycle time – Eliminated waste on spreadsheets • Process integration with other modules resulted in technology pull for new systems • Integrated sales and operations planning process resulted in one consensus forecast number “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Holistic Planning and Optimization “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Holistic Planning and Optimization Faster and better supply chain plans Long-term planning Discrete Plants Ÿ Segment the problem as needed Project Suppliers Ÿ Unified solution for supply chain and manufacturing planning Flow Customers Ÿ Optimization for planners not programmers Internet Warehouses Process DCs Semicon Short-term planning Ÿ Scalable and reliable

Holistic Planning and Optimization One solution for comprehensive supply chain and mfg planning Ÿ Supply Chain Planning – – – – Product family and item level planning Alternate components, resources, processes, suppliers, facilities, and ship methods End-item substitution Critical items and resources Aggregate resources Bills of distribution and transfer rules Customer and supplier facilities Ÿ Manufacturing Planning – – – – Simultaneous resources Batch resources Alternate resources Minimum transfer quantities Complex, network routings By-products and co-products Line rates and takt times Setup and run One supply chain model, one planning engine, one setup “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Holistic Planning and Optimization Highly adaptable; segment the problem as needed One holistic plan SCP for all Organizations Ÿ Adapts to your current business model – One DRP, multiple MRP Ÿ Evolve planning model at your own pace DRP for all Orgs – MRP Org 1 MRP Org 2 MRP Org 3 Multiple MPS, multiple MRP MPS for BU 1 MRP Org 2 MRP Org 3 Single plan or multiple plans Re-configure easily by modifying plan options instead of re-implementing or re-modeling Ÿ Multiple models can co-exist MPS for BU 2 MRP Org 4 MRP Org 5 MRP Org 6 “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Holistic Planning and Optimization Highly adaptable – Customer examples Ÿ Ÿ Interceramic – – – Suppliers 91 Distribution centers, stores, and franchises 4 Plant warehouses 7 Manufacturing plants 3000 BOMs, 100, 000 SKUs Run DRP, constrained MPS, and raw material MRP Manufacturing plants Constrained SC plan Distribution chain Customers Knowles Electronics – – – Global planning instance – 2 Locations in the US – 1 Location in Europe – 5 Locations in Asia Mixed mode manufacturing – Make to stock – Make to order – Configure to order Global order promising against 1 central plan DRP plan Collaborative demand plan Constrained MPS plan for all facilities Knowles Electronics has reduced inventory by $1 M per month after implementing Advanced Planning Inventory postponement plan “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Holistic Planning and Optimization “For planners, not programmers” Ÿ Make better decisions faster – – Ÿ Out-of-the-box optimization – Ÿ Level load Choose alternatives Make/buy decisions Late demand diagnosis Use costs or decision rules Start quickly – – Planners define the problem to solve Flexible defaulting GE AE has moved from running separate plans in 36 facilities to Ÿ Reduce planner workload running a single holistic plan across their DCs, end-assembly, contract manufacturing, and component shops, and as a result has reduced their planning organization significantly “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Holistic Planning and Optimization Scalable Ÿ Patented memory-based architecture – – Multi-threaded snapshot Optimized end-to-end run time Ÿ Database centric – – All plan information resides in the database Leverages high performance database capabilities Ÿ Flexible plan scope – – – Telescoping granularity Apply constraints selectively Subset planning High volume customers: Agilent Technologies, Sony SNC, GE AE, NCR, Panasonic, Alcoa… “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Zero Downtime Global Order Promising “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Zero Downtime Global Order Promising Ÿ Promise orders based on: – – Material availability Manufacturing capacity Transportation capacity Supplier capacity Ÿ Global statement of availability – All facilities, material, resources, and suppliers Ÿ Drive fulfillment decisions based on demand supply plans – Promise based on optimal supply decisions Ÿ Allocate available supply and capacity – – By channel, customer, or product Priority and stealing rules Ÿ Manage commitments to key customers – Re-schedule and re-sequence your backlog “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Zero Downtime Global Order Promising Guaranteed uptime and consistency via patent-pending architecture Typical Approach Promise Orders ? ? ? ? Current plan Downtime or Inaccurate orders Copy Run Promise Orders Ÿ Zero downtime – New plan – Copy No order promising downtime when underlying supply chain plan is refreshed No sales order is lost, automatically repromise sales orders against new plan Run new plan Ÿ Oracle Approach Open, reliable, and scalable – – Promise Orders Current plan New plan Copy Run – – – Engine runs inside the database No memory models to load! Multi-threaded Integrated with OM, i. Store, and Call Center Easily integrate with legacy systems Sync & Re- Swap promise Run new plan “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Zero Downtime Global Order Promising Customer examples Agilent Technologies Cisco Ÿ Ÿ Ÿ Ÿ Performing multi-level capable-to-promise Greatly reduced expedite orders with accurate order promising dates Moved from batch to online order promising Increased customer satisfaction of key strategic customers by using allocated ATP 24 x 7 worldwide order operation with ‘zero downtime’ CTP Meet customer requirement by utilizing substitute components Ÿ Every order for every router sold worldwide goes through GOP Complex order promising problem – – – Product and channel allocation rules Extensive use of ship sets in an assembly to order environment High volumes Intersil Ÿ Ÿ Using material and resource constraints (CTP) across virtual supply chain Sales people promise orders online in seconds “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Multi-Tier Collaborative Planning “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Multi-tier Collaborative Planning Full visibility and synchronization across the extended supply chain CUSTOMER Demand ‘systems’ Run plan CONTRACT MANUFACTURER YOU SUPPLIER Ÿ Plan your extended supply chain – Consensus forecast – – Supply forecast Demand ‘boards’ – Share forecasts and supply commits with customers and suppliers Get visibility to supplier capacity Reallocate key components Make alternate sourcing decisions Run plan Ÿ Reduce inventory cost and improve fulfillment Supply commit ‘boards’ Supply commit ‘memory’ Forecast ‘memory’ – – Ÿ React quickly to supply chain exceptions – – – Optional Suppliers manage your inventory Manage your customers’ inventory Waterfall analysis User-configurable exceptions Automated exception handling via workflow “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

VMI and Consigned Inventory Automate inventory replenishment with suppliers and customers CUSTOMER VMI Agreement YOU SUPPLIER VMI Agreement (with customer) VMI Agreement (with supplier) Ship items Receive items Send consumption advice Receive items Pay on receipt/use VMI Agreement Check inventory status Pay on receipt/use “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ” Ship items

Customer Example: Alcatel e. ND Ÿ Enabled 100% virtual enterprise Ÿ Plan virtual supply chain – Planning cycle time reduced by 75% Ÿ Reduced inventory by more than 65% Ÿ Reduced material liability by 80% Ÿ Established global closed-loop process controls Ÿ Improved supply chain visibility Ÿ Projected annual savings of $15 M “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Inventory Postponement Optimization “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Inventory Postponement Optimization Manage to uncertainty, reduce inventory, improve customer service Without Postponement Customers Regional Distribution Centers With Postponement Ÿ Inventory levels and policies are synchronized across the entire supply chain Ÿ Manage to uncertainty – Central Distribution Centers Final Assembly Contract Manufacturers Suppliers Demand, supply, and lead-time variability Ÿ Pull model, driven by point of postponement Ÿ Higher customer service at lower inventory cost Ÿ Time-phased safety stock buffers at all levels Ÿ Multiple target service levels

Inventory Postponement Optimization Business benefits Ÿ Reduced inventory cost Ÿ Increased flexibility to handle supply and demand uncertainty Ÿ Rapidly handle product mix changes Ÿ Reduced average fulfillment lead times Ÿ Reduced material liability Ÿ Ability to absorb yield exposure “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Inventory Postponement Optimization Key capabilities Without Oracle Ÿ Reduce inventory without sacrificing customer service – – Postponement Risk pooling Ÿ Manage supply chain variability Inventory Investment Ÿ Choose the best service level strategy based on cost and revenue With Oracle Lower Inventory Cost – Ÿ Invest in profitable channels, products, and customers Ÿ Manage seasonality and product life cycle characteristics – Higher Service Level 10 30 50 75 80 85 90 95 100 Service Level Inventory budget constraints Recommend time-phased safety stock to supply planning Ÿ Out-of-the-box optimization – For planners, not programmers “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Reduce inventory without impacting customer service “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Simulate multiple scenarios to find the optimal trade-off between cost and service level “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Inventory Postponement Optimization Customer example – GE Transportation Aircraft Engines, US Ÿ Focusing on ‘class A’ parts for service business Ÿ Determining safety stock levels across finished goods and raw materials Ÿ Realizing significant benefits – Example: reduced inventory for one part by 10% “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Strategic Network Design “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Strategic Network Design Key capabilities Ÿ Optimize your supply chain network – – Use demand scenarios as input Compare time-phased network configurations Ÿ Model all supply chain elements – – Distribution centers, processing facilities, ship methods, stores, suppliers, and customers Costs: transportation, operating, sourcing, facility ramp-up and shut-down, labor, and storage Ÿ Optimize sourcing – Output best sourcing strategy for downstream supply chain and inventory planning Ÿ Simulate changing business conditions – New businesses and new markets Outsourcing decisions – Demand scenarios – “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Strategic Network Design Proven deployment success and ROI: 300+ customers BASS BREWERS 75% Inventory reduction 5% Capacity improvement NABISCO FOODS 70% Inventory reduction 20% Capacity improvement OWENS ILLINOIS 20% Inventory reduction KIMBERLY-CLARK 50% Inventory reduction Planning cycle reduced 20% COCA COLA - FEMSA 50% Inventory reduction 25% Stock-out reduction KRAFT FOODS - EUROPE 50% Inventory reduction Planning cycle reduced 86% DOW CHEMICAL $ 350 M Inventory reduction Carrier rationalization from 200 to 12 FORT JAMES 15% Inventory reduction “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Real-Time Production Scheduling “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Real-Time Production Scheduling Key capabilities Ÿ Maximize production throughput – – – Optimize your shop floor; detect floating bottlenecks Reduce WIP inventory by rapidly synchronizing multi-stage production schedules Account for complex setup and change-over scenarios, machine breakdown, supply and resource shortages , coand by-products, alternate resources, routings, and operations Ÿ Model all elements of your shop floor – – – Work centers, resources and resource groups, shift capacity, operating costs Lead times: setup, change-over, and run Sequence dependent setups, contiguous operations, production campaigns, batching Ÿ Implement most optimal schedule – seamless integration with Oracle EBS – Output best schedule for process (OPM), discrete MFG), and semi-conductor (OSFM) manufacturing (available 2006) “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Real-Time Production Scheduling Customer examples GE Energy Toyota Racing Division Ÿ Ÿ Ÿ Ÿ Ÿ Improved schedule accuracy and confidence by reflecting real time shop floor constraints Finite machine, crew and tool resource constraints Floating resource bottlenecks due to demand mix variability Operation sequence dependent setup times Operation buffering to avoid intermittent glue gun usage Alternate resources with preferences Simulations of hot order impact on existing schedule Complex demand priorities Ÿ Ÿ Ÿ Reduced schedule creation from 3 weeks to < 2 hours Support re-planning based on constant design changes during production Respect for crew specialization Optimized use of un-manned operations during downtime Nampak Ÿ Reduction in time lost due to sequence dependent press setups for container styles and sizes “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Integrated Performance Management and Process Automation “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Integrated Performance Management Closed-loop plan-execute-measure-adapt process PLAN TO PERFORMANCE • Planned utilization ASCP • On-time delivery • Planned margin DP IO TP Execute transactions Define targets • Carrier contract utilization • Cost per unit weight • Cost per unit volume CP • Supply commit variability • Order forecast variability PROCESS Identify key performance measures and set targets Calculate KPIs and compare to plan; notify decision makers of exceptions • Forecast accuracy • Margin analysis • Promotion effectiveness • Service level analysis • Plan versus profit • Postponement savings BUSINESS INTELLIGENCE Notify on “out of tolerance” Measure performance Analyze exceptions based on facts; take immediate corrective action Perform trend analysis and adjust business plan and targets Management Reports Role-based portals OUTPUTS “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Process Automation Increase planner productivity Ÿ Automated end to end planning process – Completely integrated business process flows across all products Ÿ Automated plan execution – Auto-release orders and reschedule recommendations Ÿ Configurable exception management – – – Workflow enabled exceptions User-defined exceptions Configurable thresholds Kyocera has workflow-enabled their planning process to the extent where their planners manage all the plan exceptions by responding to email notifications “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Scalable and Open Architecture “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Scalable and Open Architecture Database-centric architecture TRADING PARTNERS INTERNAL USERS Ÿ High performance – – Portal Internet Order Promising Engine Oracle ERP Analytical Workspaces Ÿ Reliable – – – APIs KPIs Workflows Plans All plan information resides in the database Hot backup and recovery Leverages grid computing infrastructure Ÿ Open and standards based – Advanced Planning XML EDI Flat file In-memory only when needed Multi-threaded snapshot Leverages key database features like materialized views, partitions, and analytical workspaces – – Runs against all versions of Oracle EBS 11. 0, 11 i Deploy against legacy systems XML, flat file, EDI support Legacy Systems Legacy Deployments Cochlear, Embraer, FXAP, NCR, Interceramic, Perkin Elmer, GE Transportation Aircraft Engines, Xilinx, … “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Momentum “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Ongoing Momentum Ÿ 1000+ Advanced Planning customers – – Both new installs and upgrades, several legacy system deployments 50% same instance, 50% distributed architecture Broad use of modules Worldwide deployments § US, Brazil, Mexico, UK, France, Italy, Spain, Switzerland, Belgium, Turkey, Israel, South Africa, Singapore, Japan, India, Taiwan, Indonesia, Australia, New Zealand, Korea, China, Malaysia, Netherlands, Denmark, … – Large-scale, complex deployments across all industries “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

A Few Live Customers … Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Intersil - ASCP, DP, GOP Fuji Xerox Asia Pacific - ASCP, DP Perkin Elmer - ASCP, GOP NCR - ASCP, DP Namitech - ASCP, GOP Emerson – ASCP, DP BMW – SNO Xilinx - ASCP UPS Logistics - ASCP, GOP Agilent - ASCP, GOP, DP Mykrolis - ASCP Knowles Electric - ASCP, GOP Panasonic - ASCP Honeywell S&C - ASCP, DP Embraer - CP, DP Tube Investments - ASCP Toyota – PS Eaton Trucks - ASCP Kyocera – ASCP Nampac – PS, SNO Hoffman - SNO Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Cisco - ASCP, GOP Alcoa - ASCP, DP, GOP Canon Virginia – ASCP, CP GE Energy Power Systems - ASCP, GOP GE Transportation Aircraft Engines - ASCP GE Energy - PS Silgan Plastics - ASCP Qualcomm - ASCP, DP, CP Mc. Graw-Hill - ASCP, DP Alcatel e. ND - ASCP, DP, CP Intersil – ASCP, DP Cervecería Quilmes - SNO Mango - CP Rockford - ASCP, DP Quantum - ASCP, DP Graf. Tech International - SNO Boeing - ASCP Anugra Argon Medica - ASCP, DP Cochlear - ASCP, DP Inventec - ASCP, GOP, CP Dow Chemical – SNO, PS “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Adding Value and Assuring ROI Ÿ Intersil reduced inventory by 50%, reduced response time for critical products from 336 to 24 hours, 246% ROI Ÿ Xilinx achieved a 98% delivery performance to promise date Ÿ Alcatel e. ND moved to virtual supply chain model and reduced inventory by more than 65% Ÿ Anugrah Argon Medica improved on-time delivery to 98% Ÿ TEC Electronics improved inventory turns by 37% Ÿ Tube Investments reduced inventories by 20%, ramped up production by 20%, increased market share from 50% to 80% Ÿ Dow Chemical reduced inventories by $350 M, rationalized carriers from 200 to 12 Ÿ Graf. Tech reduced inventories by 40% and lead times by 20%

Inventec Multimedia & Telecom, Taiwan COMPANY PROFILE • • BEFORE ORACLE Large contract manufacturer of voice and digital imaging, and voice and data transmission products $360 M revenue PLANNING BENCHMARK • • • End-to-end planning run = 2 hrs Collaboration with 150 suppliers Full CPFR implementation • • AFTER ORACLE • 4 month implementation • • Benefits • • Uni-directional planning process (Cisco > Inventec > Suppliers) No supply-demand allocation process Excess inventory, extensive expediting Supplier bottlenecks – late delivery of critical components No support for CPFR No constrained based order promising – inaccurate order dates Spreadsheet based tools, disconnected systems Operates complete collaborative planning process using ASCP, GOP, and CP Collaborative supply-demand planning with key customers Collaborative supply planning with 150 suppliers Constrained multi-org plan, weekly; used to publish order forecast to suppliers, who provide supply commits as input Daily plans as a basis for material constrained ATP VMI with suppliers – full visibility to stock levels and in-transit Reduced order promising lead-time from 3 days to minutes Achieved real-time visibility to supply and demand Reduced planning cycle time through an integrated forecast-to-plan model Highly automated planning processes versus previous use of spreadsheets “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

NCR Corporation, US COMPANY PROFILE BEFORE ORACLE • • Retail Services Division (RSD) and Financial Services Division (FSD) Manufacturer of point of sale and high-end scanning equipment, and service provider of complete store automation, ATMs, and self-service kiosk solutions $5. 6 B revenue FY 02 WITH ORACLE AFTER ORACLE PLANNING BENCHMARK Demand Planning • 500, 000 demand planning composites • 12+ month forecasting horizon • 20 Gb memory model Supply Chain Planning • 20 orgs • 1, 000 items • 2, 5 hours end-to-end planning run • • Benefits • • Each organization ran individual MRP, 54 ERP instances Integration between orgs was based on buy-sell relationship Forecast accuracy < 50% Sales and operations planning cycle time: 21 days No system supported sales and operations planning process • • • Runs worldwide manufacturing and sales operations using ASCP, DP, and GOP Single, global plan for 20 orgs, including worldwide distribution centers and manufacturing plants Runs daily constrained enterprise plan (EDD) Complex procured configurations Using real-time material constrained, multi-org, multi-level ATO order promising process Synchronization of entire worldwide supply chain with complete global visibility Strongly reduced planning cycle time Strongly increased forecast accuracy System supported sales and operations planning process “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Toshiba TEC, Worldwide Global planning deployment – Multi Instance Distribution Sites Manufacturing Sites Ÿ MRP Europe China Forecast Orcl 11. 0 MRP Orcl 11 i Malaysia Ÿ $3. 1 B manufacturer of document processing equipment Previous process – Orcl 11. 0 – US Orcl 11 i Japan Forecast Orcl 11. 0 MRP Ÿ Current process – Toner Mfg Plant – – – Resource and material constrained Production Plan (MPS) Advanced Planning 11 i Ÿ – Orcl 10. 7 Japan – Distribution Sites Global centralized planning model ASCP is cornerstone of Global SCM project Uses ASCP to make global production allocation decisions Uses material and resource constrained planning Benefits – Forecast Multiple regional ERP instances Decentralized planning process – Moved from a monthly planning cycle to a weekly cycle Reduced manufacturing cycle times Optimized worldwide inventory levels Read their online testimonial “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Agilent, Worldwide Highly complex, large scale model SEMICONDUCTOR PRODUCTS GROUP (SPG) TEST and MEASUREMENT, and AUTOMATED TEST GROUP (ACE) • • $1. 586 B net revenue (FY 03) $2. 53 B and $0. 76 B net revenue (FY 03) BEFORE ORACLE • • • Legacy order promising using ATP Disparate planning tools across supply chain Reactive, manual, and time consuming plan analysis 1 week planning cycle Manual forecast generation No system supported S&OP process Legacy order promising using ATP Manual order promising with fixed lead-time Weekly, cascaded MRPs (4 wk propagation) No system supported S&OP process Multiple, divergent systems/process statistical forecasting, new product introductions, or promotions AFTER ORACLE • • Runs worldwide manufacturing and sales operations using ASCP, DP, and GOP Runs optimized enterprise plan, twice/week Plan includes tier-3 supplier organizations Low cost, high volume and high mix demand Using real-time CTP to promise orders 24 x 7, with use of complex allocation rules Using complex network routings PLANNING BENCHMARK • • • Runs worldwide manufacturing and sales operations using ASCP, DP, and GOP Runs weekly unconstrained enterprise plan High value, low/moderate volume demand; using 32 sub-plans, new product introductions, and promotions Using real-time ATP to promise orders Using multi-level ATO and PTO models PLANNING BENCHMARK • Planning ~1, 500, 000 forecast entries Scheduling 2 million operations 6 -8 BOM levels, ~25 components per BOM • 6 -12 BOM levels, ~1000 components per BOM >50, 000 items, 6 month planning horizon • ~400, 000 items, 12 month planning horizon < 50 ASCP and 10 DP users • 200 ASCP and 15 DP users >20 orgs • 12 factory orgs, 5 SMI orgs, 1 CM org 25 Gb memory model, end-to-end 15 hrs run “This presentation is for informational purposes only and may • be incorporatedmodel, contract or agreement. ” not 15 Gb memory into a end-to-end 12 hrs run

Graf. Tech International, Worldwide COMPANY PROFILE Ÿ Ÿ Ÿ BEFORE ORACLE HQ in Wilmington, DL, USA Manufacturer of carbon and graphite products, used in steel and other metals industries $700 M revenue 13 manufacturing facilities on 4 continents Customers in 60 countries Ÿ Ÿ Organization had tremendous challenges keeping up with fast changing and demanding graphite electrode business climate Internationalization issues No metrics to drive decisions to improve profitability No system supported network design process AFTER ORACLE Ÿ Ÿ Benefits • • Runs worldwide network design optimization using SNO Multiple simulation scenarios across 13 manufacturing facilities worldwide Improved service levels through lead time reduction Using storage, transportation, sourcing, operating, and labor costs Optimization of entire worldwide supply chain network Reduced inventory by 40% Reduced lead times by 20% Strongly improved resource utilization, globally “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Dow Chemical, Worldwide COMPANY PROFILE Ÿ Ÿ Ÿ BEFORE ORACLE HQ in Germany Manufacturer of chemicals $28 B revenue 7 manufacturing facilities Customers worldwide Ÿ Ÿ Organization had tremendous challenges keeping up with fast changing business climate Inventory levels and logistics costs were proportionally high No system supported network design process No production scheduling system AFTER ORACLE Ÿ Ÿ Ÿ Benefits • • Runs worldwide network design optimization using SNO Multiple simulation scenarios Improved service levels through lead time reduction Using storage, transportation, sourcing, operating, and labor costs Improved production throughput in all 7 plants Optimization of entire worldwide supply chain network Reduced inventory by $350 million Reduced carriers from 200 to 12 Strongly improved resource utilization, globally “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Cervecería Quilmes, Latin America Developed regional SNO model to answer critical logistics questions Ÿ Market leader in Argentina, dominates beer markets in Latin America (Uruquay, Paraguay, Bolivia, Chile) – – Quilmes supplies 60% of beer in these markets Quilmes bottles 90% of Pepsi. Co branded sales in Argentina Ÿ Annual revenues $940 M Ÿ Consolidated assets of $1. 5 B “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Quilmes Capacity Planning Developed regional SNO model to answer critical logistics questions Deployment of inventories? Sourcing of raw materials? OW? When? Increases / divestment ? Brewing Bottling Demand How much? Warehouse Malt? What? When? How much? Supplier What? How much Demand Supplier Demand DC Brewing Bottling Interplant movements? Warehouse. “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ” Where from? Seasonal changes?

Quilmes Capacity Planning Developed regional SNO model to answer critical logistics questions Ÿ Quilmes management can evaluate: – – – Impact of changes in demand mix - size (specialization and despecialization of bottling lines) Impact of changes in demand mix - brew (specialization and despecialization of plants) Acquisitions: opening and closing of production lines, plants, and DCs Responses to demand uncertainty Changes in sourcing of critical supplies for a given plant and period Integration of processes and acquisition of a supplier or suppliers “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

How To Get There ? “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Start with Unconstrained ASCP Better MRP solution at low initial cost Ÿ Improve planner productivity – ASCP – Ÿ Reduce your planning cycle time from months to hours – – Unconstrained Ÿ APS Common Infrastructure – Ÿ Ÿ Improved exception resolution Improved modeling Reduce non-value added costs – Oracle Applications (11. 0, 11 i) Holistic planning Improved scalability and performance Make better decisions faster – MRP New productivity enhancing UI Planner collaboration Workflow based exceptions Drive continuous improvement – Integrated business intelligence Foundation for future growth Common infrastructure “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Unconstrained ASCP Make better decisions leveraging a more comprehensive model Ÿ Use a single plan to plan your entire supply chain to reduce planning cycle time – – – Simultaneous material and capacity planning Plan process and discrete mixed models Perform forecast consumption inline Ÿ Plan at aggregate level, as well as detailed level in a single plan, with better accuracy – – Time granularity in plan horizon Account for yields Ÿ Leverage advanced problem solving and analysis tools – – Comprehensive exception management and automation through workflow Extensive pegging capabilities Ÿ Measure plan to target performance – Integrated performance management “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Leverage a stronger foundation for future growth “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

1. Improve The Quality Of Your Plans Use constraints and optimization to improve decision making Ÿ Improve plan quality – ASCP Optimized – Automatically recommend alternative suppliers, components, resources, facilities, and routings Generate feasible plans that respect your material and resource constraints Constrained Unconstrained MRP APS Common Infrastructure Ÿ Make better decisions faster – – Oracle Applications (11. 0, 11 i) Cost based optimization: maximize profit, inventory turns, and customer service Out-of-the-box optimization Priority based decisions Drag-and-drop rescheduling Ÿ Improve resource scheduling – – – Schedule simultaneous resources Batch resources Minimum transfer quantities “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

2. Expand Your Solution Footprint Start with your most important problem Sales and Operations Planning Demand Planning ASCP Network Design Optimized Inventory Optimization Constrained Collaborative Planning Unconstrained Production Scheduling Global Order Promising MRP APS Common Infrastructure Ÿ Sales and Operations Planning – Balance demand, supply, inventory and budgets Ÿ Network Design – Optimize your supply chain network Ÿ Demand Planning – Improve forecast accuracy Ÿ Inventory Optimization – Improve service level at lower inventory cost Ÿ Global Order Promising – Promise more reliable dates to customers Ÿ Collaborative Planning – Automate inventory replenishment and supply chain collaboration with your trading partners Ÿ Production Scheduling Oracle Applications (11. 0, 11 i) – Maximize your production throughput “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Integrated, yet Modular Leverage integration at incremental investment PLANNING PROCESS Forecast scenarios Sales and Operations Planning Network Design Demand Planning Forecast and demand variability DP Forecast Inventory Optimization Sourcing rules IO Time-phased safety stocks Firm supply schedule Planned orders Production Scheduling PS SNO Supply Chain and Manufacturing Planning ASCP Sourcing rules Constrained plans Global Order Promising GOP Supply commits Order forecast Customer forecast Supplier capacity Collaborative Planning SUPPLIERS CP CUSTOMERS Today Coming “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Summary “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Oracle Advanced Planning E-Business planning solution: zero latency, real time collaboration CUSTOMERS SUPPLIERS Tier 2 Tier 1 Portal Automated Exceptions Marketing Manufacturing Sales Mfg. Demand Hub & Multidimensional analysis Consensus forecast and production plan S&OP Process Single holistic plan Supply Planning Business Intelligence DRAFT

Why Oracle! q Integrated planning, execution, and collaboration q Holistic planning and optimization q For planners, not programmers q Integrated performance management q Lowest total cost of ownership “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Key Takeaways Low risk, high value transition to a better planning system Ÿ Proven and complete planning solution – – Many live customers on multiple products, across a wide variety of industries Large-scale, complex, worldwide deployments For Planners, Not Programmers - Out-of-the-box optimization Superior architecture - scalable, database-driven planning; common data model across all engines, shared with execution Ÿ Provides significant value – – – Large reduction in planning cycle time Significant reductions of inventory and increase in customer service levels Enables customers to implement best practices Ÿ Progress at your own pace, transition gradually – Quickly start with unconstrained planning Move up to constrained or optimized planning – Leverage out-of-the-box integration to rapidly extend planning footprint – “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

Q & A Q U E S T I O N S A N S W E R S “This presentation is for informational purposes only and may not be incorporated into a contract or agreement. ”

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