IWK e-PROCUREMENT & SAP SUS OVERVIEW 2017 IWK vendors © IWK Sdn Bhd / 2017 Confidential

SAP ERP Where we are now and our achievement to-date eP SUS PERSONAS Manage purchasing document and master data PERSONAS Improve user productivity by personalizing their SAP screen and layout Save time and less manpower for data entry e-Procurement Increase transparency Expedite quo/tender process Less manpower Paperless process Generate savings Extensive reporting Vendor master Material & Service master Auction data FIORI Online approval screen Expedite approval process Mobile friendly application – help managers to approve request SRM Manage Operational Contract Online approval Shopping Cart Expedite contract preparation process SUS CLM Manage master agreement Online approval Expedite contract document preparation process SUS Online PO Online approval Online service verification Online invoice Expedite payment process and verification ROS Online registration Manage vendor master data Paperless Expedite vendor registration process Online approval BW/SPM/BOBI/LUMIRA Simplify data analysis and reporting Help users to perform spend analysis Help managers to monitor budget and spending © IWK Sdn Bhd / 2017 Confidential

E-Procurement and SAP Modules Implemented by IWK 2007 - 2009 2014 2015 Privasia E-Procurement Contract Management Operational Procurement Invoice Management Spend Analytics SAP Spend Performance Management SAP SRM, SAP ERP & SAP Cart Approval SAP Invoice Mgmt Supplier Connectivity via SUS e-Procurement Platform integrated with SAP SAP Contract Lifecycle Mgmt © IWK Sdn Bhd / 2017 Confidential

Features Full paperless processes from sourcing/bidding, PO/contracts, invoicing and payment Open and transparent for all users and Business partners Fast and responsive processes On-line approvals Better controls Better spend analysis and reporting Long and difficult journey to implement the full system © IWK Sdn Bhd / 2017 Confidential

Part 1: eProcurement Overview Part 2: SAP SUS for SUS Vendor © IWK Sdn Bhd / 2017 Confidential

PART 1 E-PROCUREMENT (e-Sourcing/e-Bidding) © IWK Sdn Bhd / 2017 Confidential

Process Flow – e-Procurement Auction Setup Bidding Auction Close Purchase Request Approval & PO © IWK Sdn Bhd / 2017 Confidential

e-Procurement Background The Putrajaya Committee on GLC High Performance (PCG) formed in 2006. Main intent to increase overall performance of GLCs, corporate governance, shareholder value and stakeholder management. Led by Khazanah and MoF Transformation Manuals launched on: Enhance Board Effectiveness, Review & Revamp Procurement (Red Book), Improve Capital Management, Develop Human Capital and Others © IWK Sdn Bhd / 2017 Confidential

Review and Revamp Procurement – Procurement Red Book Procurement Red Book issued in April 2006 by PCG. Procurement Best Practices included are: Minimise total cost of ownership Ensure efficient procurement cycle time Enhance transparency and eradicate corruption Enhance organisation capabilities and governance Develop a stable and competitive supplier base E-Procurement is the key factor to achieve the above. © IWK Sdn Bhd / 2017 Confidential

Benefits to Suppliers There will be more opportunities due to open participation; Easy access into the Company for new suppliers and contractors; Easy to use system; More time to do business with less paperwork and travel for manual bid submissions; Free service without additional charges; and Lower cost in conducting business. © IWK Sdn Bhd / 2017 Confidential

eProcurement Volume – in RM Million Drop in 2014,15 & 16 due to Term Contracting. Renewals of contracts. Overall volume at RM300M. Mostly sourcing via e-Procurement 197 124 123 108 © IWK Sdn Bhd / 2017 Confidential

eProcurement Volume – No of Auctions Drop in 2014, 15 & 16 due to Term Contracting. Renewals of contracts. Overall volume at RM300M. Mostly sourcing via e-Procurement 4,573 4,531 4,142 3,979 3,510 3,181 2,426 2,370 937 4 © IWK Sdn Bhd / 2017 Confidential

Term Contract Volume 2016 Significant increase from 2015 actual of 62% Higher % = Responsive process and competitive © IWK Sdn Bhd / 2017 Confidential

E-PROCUREMENT PORTAL INTRODUCTION LIVE DEMO- https://ep.iwk.com.my © IWK Sdn Bhd / 2017 Confidential

VIDEO URL Link: SUPPLIER INTERFACE https://ep.iwk.com.my/ep/portal/Vendor%20Briefing%202017%20Central/eP%20Vendor.mp4 © IWK Sdn Bhd / 2017 Confidential

General Statistics No. of auctions by Central Region Unit Offices from Jan – Dec 2016 Status Head Office KL Shah Alam Subang Jaya Klang Langat Gombak No of Auction 113 201 73 146 192 188 143 Participation <3 41 89 15 33 28 32 30 Participation >3 72 112 58 164 156 Average participation 4.2 2.9 4.8 4.4 5.3 4.7 4.5 Unit Office with poor participation (<3): KL Unit Office. Unit office to improve the number of participation per auction to improve competitiveness. If not invited, vendors can participate via Self-Invite. © IWK Sdn Bhd / 2017 Confidential

PART 2 SAP SUS FOR SUS VENDOR (e-PO and e-Payment) © IWK Sdn Bhd / 2017 Confidential

General Statistics No. of SUS POs since January 2016 to-date : 19,153 No. of completed works (PO – Invoice) : 15,444 Site: Head Office, KL UO, Shah Alam UO, Subang Jaya UO, Klang UO, Langat UO & Gombak UO PO Status No. of PO No PO Acknowledgement 1,182 No SES 2,158 No Invoice 369 Total outstanding PO in SUS 3,709 © IWK Sdn Bhd / 2017 Confidential

Issues & Action By Contractor/Supplier Problem to login eProcurement or SAP SUS. Request to reset Password. Contact Procurement/IT head office Email to ep@iwk.com.my Not invited to participate in auction. Can participate via Self-Invite. System will check Reg Cat match with Auc Cat, Site Visit date & vendor performance Problem with service/product delivery to unit offices. Issues with online document submission in SUS portal. Discuss with Requisitioner/Proc Exec/BSM or Unit Manager at Unit Offices Forgot how to use the system (Staff resigned & others). Contact Procurement Head Office for refresher class Payment status or issue related to payment. Contact BSM at Unit office or Finance Head Office © IWK Sdn Bhd / 2017 Confidential

THANK YOU Procurement Department IWK © IWK Sdn Bhd / 2017 Confidential