A R I B A® C O N F I D E N T I A L Ariba Spend Management Procurement Overview May 2006 Eric Washer – Solution Strategist

A R I B A® C O N F I D E N T I A L Agenda  Ariba Procurement Overview  Ariba Procurement and P-Cards  Value and Benefits  Strategies and Processes Supported  Ariba Procurement Demonstration  P-Card Program Compliance  Supplier Communication and Support

A R I B A® C O N F I D E N T I A L Ariba has worked with… 10 of the Top 14 Automotive 4 of the Top 4 Chemicals 5 of the Top 6 Computer Hardware 3 of the Top 3 Computer Software 3 of the Top 3 Energy & Utilities 2 of the Top 4 Industrial Manufacturing 2 of the Top 4 Insurance 4 of the Top 4 Pharmaceuticals 2 of the Top 4 Retail 4 of the Top 4 Telecom Services In the typical day at Ariba … Sourcing Projects Completed245 Volume Sourced$143M Volume Purchased$667M PO’s Processed66,000 Suppliers Transacting135,000 Ariba is focused on Spend Management Speed, Sustainability, Coverage Ariba serves 500+ global customers… Over half of the Fortune 100 Over 100 of the Global 500 Over 250 sourcing customers

A R I B A® C O N F I D E N T I A L What is Procure-to-Pay? Requisition to PO Automation: Streamlined, electronic requisition to PO processing Electronic Invoicing and Reconciliation: E-Invoice processing and management Contract Compliance: Real time compliance to contracts thru PO and Invoice Mgmt 4 Supplier Connectivity: Electronic inclusion of suppliers in PO and Invoice processing

A R I B A® C O N F I D E N T I A L Why is Procure-to-Pay Critical? Savings Potential … Sourced Savings & Negotiated Contracts Realized savings without procurement Savings with Procure- to-Pay (12-18%) 5-7% Lost Contract Compliance Inefficient purchasing Process 3-5% Invoice processing & supplier management 4-6% Value of Procure to Pay Forrester, April 2004 “Procurement Needs Executive Sponsorship To Achieve Potential” “ Drive-by sourcing events are one thing but procure to pay is where rubber really hits the road ” Pierre Mitchell, Hackett Group from CPO Agenda Winter 2005 Savings % Strategy RealityResult

A R I B A® C O N F I D E N T I A L Why is Procure-to-Pay Critical? Savings Potential … Aberdeen Group, May 2006 “e-Procurement Beyond the Hype: Companies Increase Spend Under Management, Reduce Costs with e- Procurement Systems” Reduced by 64% Reduced by 66% Increased by 20% Savings with Procure- to-Pay (5-20%) Value of Procure to Pay Off-Contract “Maverick” Spending Requisition to Order Cycle Time Total Spend Under Management

A R I B A® C O N F I D E N T I A L Challenges in Procure-to-Pay Cycle User I need to find things quickly, get approval, order fast and track status I spend too much time on routine PO/Invoice processing How do I enforce purchasing policy compliance across my distributed organization What are my real savings? How is purchasing impacting the bottom-line? End-User CPO / CFO Purchasing Manager Buyer / AP Clerk Stakeholder Challenges

A R I B A® C O N F I D E N T I A L Ariba Procure-to-Pay Ariba Procure-to-Pay User I need to find things quickly, get approval, order fast and track status I spend too much time on routine PO/Invoice processing How do I enforce purchasing policy compliance across my distributed organization What are my real savings? How is purchasing impacting the bottom-line? End-User CPO / CFO Purchasing Manager Buyer / AP Clerk  Automated approvals  Electronic POs and Invoices  Supplier Connectivity  Desktop requisitioning  Electronic catalogs  Fast approvals  Manage Supplier Process  Alerts & Notifications  Exception Mgmt  Measurable savings  Enforce best practices  Peer Benchmarks  Total Cost of Ownership

A R I B A® C O N F I D E N T I A L Procurement & P-Card Compliance Overview Procurement ‘Pain’ PointsApplication Business Impact Lack of end user compliance to procurement programs (i.e. P-Cards) Inability to drive pre- authorization approvals Lack of control or visibility over maverick spending Inability to confirm that transactions executed using negotiated pricing & terms No visibility of achievement of pre-determined spend thresholds Ability to drive user behavior and assurances to procurement programs Eliminate maverick buying and track supplier compliance to contract pricing and terms Streamline processes, decrease cycle times and eliminate paper Access to historical data and trends to include in sourcing strategy development

A R I B A® C O N F I D E N T I A L Ariba Procurement Traction  250+ licensed and live customers across all industries  Over $42B a quarter in spend under management  Some customers transacting over 45K POs & $1B quarterly  Over 135,000 suppliers connected via the Ariba Supplier Network  2005 P-Card Spend thru Network was $2.5+ bln  Over 150 Customers leveraging P-Cards w/ Ariba Procurement P-Card2005 Volume Visa1.0+ mln (5.9%) MasterCard1.2+ mln (7%) AMEX1.3+ mln (7.6%)

A R I B A® C O N F I D E N T I A L Ariba Procurement Solution Areas 3 step requisition wizard for all categories of spend Category specific requisition templates Auto accounting and classification for clean data input Intelligent electronic workflow prior to order commit PO & P-Card Order Creation and Compliance Req & PO Automation Contract Compliance Electronic Invoice Supplier Network Drives compliance to pricing terms at time of transaction Tightly integrated with Req to PO and Invoicing Enables strategic contract monitoring and usage Enforces proper payment methods (i.e. P-Cards) Enables electronic 4 way match (PO, Contract, Receipt) Category specific exception handling rules Intelligent workflow, exception & P-Card reconciliation Early pay and dynamic discounts capabilities Single Commerce Hub – supporting over 135K+ Suppliers Includes Suppliers in PO, Inv. & Content Mgmt processes Supports a wide range of technical standards for all suppliers

A R I B A® C O N F I D E N T I A L Agenda  Ariba Procurement Overview  Ariba Procurement and P-Cards  Value and Benefits  Strategies and Processes Supported  Ariba Procurement Demonstration  P-Card Program Compliance  Supplier Communication and Support

A R I B A® C O N F I D E N T I A L This is Spend Management

A R I B A® C O N F I D E N T I A L Supplier Preferred Format (CSV, EDI, HTML, cXML, Fax) Supplier Procurement Components TAMS 2 cXML Ariba Supplier Network Invoices Hosted Single Network 99.5% Uptime No Infrastructure or IT Costs Single inbound hub for supplier communication Integration to P-Card Vendors for Charge Statements and Reconciliation Hosted Single Network 99.5% Uptime No Infrastructure or IT Costs Single inbound hub for supplier communication Integration to P-Card Vendors for Charge Statements and Reconciliation Fax Scan OCR POs & Core Data Single Channel for all Supplier Communications Purchase Order Submission Purchase Order Confirmation Shipping Notices Change Order Updates P-Card Payment Methods/Communication Invoice Submission Invoice Status Updates Credits and Remittance Advice Content Updates & Validation Single Channel for all Supplier Communications Purchase Order Submission Purchase Order Confirmation Shipping Notices Change Order Updates P-Card Payment Methods/Communication Invoice Submission Invoice Status Updates Credits and Remittance Advice Content Updates & Validation Over 250 buyers and 135K suppliers 16 million annual PO’s, $75 billion spend Over 20% of POs on PCards 4 million annual Invoices, $7 billion spend 80+ million catalog items Suppliers in 115 countries Close to 20% of Toshiba Suppliers on ASN Over 250 buyers and 135K suppliers 16 million annual PO’s, $75 billion spend Over 20% of POs on PCards 4 million annual Invoices, $7 billion spend 80+ million catalog items Suppliers in 115 countries Close to 20% of Toshiba Suppliers on ASN Toshiba User TAMS 1 TAMS N Other Customers Ariba Procurement Toshiba Ariba Procurement

A R I B A® C O N F I D E N T I A L PCards with Ariba Procurement ASN Reconcile? PCard Exception Routing Y Ariba Platform (xml) (EDI) (ASN Entry) PCard Order Management Supplier EDI HTML cXML PCard Transaction Statement Matching Rules Requester Request PO / PCard Reconciler TAMS 2 Fax PCard Provider Receipt Other Approval ? N Approver TAMS N TAMS 1