1 Agile Product Lifecycle Management (PLM) Overview February 22, 2008 Sarvesh Jagannivas – VP, PLM Marketing

2 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. Safe Harbor Statement

3 $B Source: AMR Research, 2005; CAGR ( ) % Total4.7 SRM9.0 SCM5.0 HCM7.0 PLM13.3 CRM6.0 Core ERP3.0 Total Enterprise applications forecast (in order of size by 2009) PLM is 3 rd largest segment in enterprise applications by 2009 with double digit growth (13%) PLM is the key enabler for product innovation, at the heart of growth strategies for product-centric companies PLM is influencing enterprise application suite deals PLM = Enterprise Software Imperative

4 PLM = Innovation “You can only win the ‘war’ with ideas, not with spending cuts.” -- Klaus Kleinfeld, President & CEO, Siemens AG “To turn really interesting ideas and fledgling technologies into a company that can continue to innovate for years, it requires a lot of disciplines.” -- Steve Jobs, CEO of Apple Computer, Inc. “The world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow.” -- Rupert Murdoch, Chairman& CEO, News Corporation “Innovate forever, in other words, is neither a slogan nor an aspiration; it is a requirement.” -- Geoffrey Moore, Author; Managing Director, TCG Advisors; Venture Partner, MDV

5 Why PLM? Innovation is a top business imperative Renewed growth focus fueled by product innovation New products, new markets, new technologies are top drivers Executive focus on product development Profitable Growth & Right-To-Market is the only option Key challenges driving PLM adoption Global product development Outsourcing & acquisition integration Increasing product variance & complexity Accelerating product launches and time to volume Increasing regulatory compliance & product quality requirements IP management and security Innovation with Growing Globalization & Regulations

6 Why PLM? PLM Mission is to Maximize Profitability at each Lifecycle Phase

7 Challenge PLM Impact Drivers Reduce costs and increase efficiencies thru global engineering and outsourced design & mfging collaboration Enable Globalization & Outsourcing Low Cost Design Centers, Outsourced Design & Mfg, Acquisitions Reduce cycle time % Improve productivity % Accelerating Time To Market Faster innovation cycles, NPI explosion Reducing Costs & Increasing Profits Intense pressure to reduce costs and supply risk, improve profit margins Reduce material costs % Reduce new part adds % Reduce Waste / Rework by 30-40% Managing Risk & Ensuring Compliance Increased Quality and Regulations Managing risk across financial, regulatory and international complexity Why PLM? The PLM Value Proposition – Quantifiable ROI

8 What is PLM? PLM enables companies to accelerate product innovation and maximize product profitability… …through the management of the information, processes and decisions about their products… …throughout the product lifecycle and across the global product network

9 What is PLM? Product Information is Fragmented, in Disparate Global Systems

10 What is PLM? PLM enables the Enterprise Product Record

11 What is PLM? PLM enables Streamlined Processes, Better Product Decisions

12 What is PLM? PLM enables the Global Product Network

13 What is PLM? PLM completes the Enterprise Application footprint Source: AMR

14 What is PLM? PLM completes the Enterprise Application footprint Product Innovation New Product Introduction Order to Fulfillment

15 Agile PLM Industry Leadership & Focus PLM leadership in key strategic, growth markets High Tech Dominant market leader Life Sciences Market share leader Consumer Packaged Goods Early PLM leader Industrial, Automotive, Aerospace Strong & loyal customer base Emerging leader in electronics segments

16 1,300+ Enterprise PLM Customers Cisco Apple GSK Philip Morris International Tyson Foods Coca Cola

17 Open Enterprise PLM Leader Sample Agile/Oracle Apps CustomersSample Agile/SAP Apps Customers Cisco Apple Philip Morris International Tyson Foods Coca Cola

18 Example Customer PLM Imperatives Corporate foundation for engineering & supply chain Secure IP management & product portfolio management Comprehensive compliant dataset for regulated products Global product quality and compliance Global PLM standard to streamline worldwide operations Collaboration & visibility across global product network Nutritional content from recipe to label and NPDI PLM standard, recent quality add-on Wire line infrastructure enablement to leading customers Global pack management

19 Value Proposition for Key Stakeholders VP Operations/COO – Better manage product launch and the complex global supply chain VP R&D/Engineering – Better manage the global design chain and improve DFX VP Quality/Compliance – Better manage quality incidents and complex global regulatory issues in EHT (RoHS) and Life Sciences (FDA) CIO – Reduce the number of disparate, non-integrated solutions managing product data

20 Harris “The combination of Agile PLM solutions with Oracle’s enterprise applications, middleware, and technology solutions offers a best-in-class, enterprise solution for product lifecycle management. We foresee this combination as a major force in helping companies lower costs and at the same time increasing the profitability of new product development. This is good news for customers.” - Leon Shivamber, VP Supply Chain Management & Operations, Harris Corporation

21 Example Customer ROI Faster Time-To-Market — reduced by 25% Increased Efficiency — improved by 30% Reduced ECO Cycle Time — from 5 days down to 2 70% decrease in customer quote 87% reduction in document control costs Lower costs due to 45% increase in supplier participation on bids Increased productivity, exceeding expectations by 25%. Reduced change package cycle time by 30+ days. Increased Visibility & Access to controlled docs by 30%+ Managed to double gross margins Went to a fully outsourced model in 18 months Increased visibility & leverage of $1B in spend & 280 suppliers Reduced new product introductions process from 45 to 7 days Reduced Costs: Lowered development costs Increased Efficiency: Streamlined product development processes

22 Agile Enterprise PLM Solutions Agile PLM - Industry leading, best-in-class, flagship enterprise PLM solution for High Tech & Electronics, Life Sciences, Industrial, Automotive, A&D, and CPG (Discrete) Agile PLM for Process - CPG and Retail solution for product recipes and specification management, Food & Beverage is sweet spot

23 Agile Product Collaboration Engineering, Operations & Supply Chain Enterprise product record visibility, management & collaboration Agile Enterprise Visualization Native document collaborative visualization across the global enterprise Cross-Enterprise Agile Engineering Collaboration Engineering desktop integration & collaboration Development & Engineering Agile Product Cost Management Product sourcing and lifecycle cost & risk management Procurement Professionals Agile Product Portfolio Management Integrated product, program, resource & portfolio management Executives & Program Office Agile Product Governance & Compliance Product & program compliance against standards & regulatory requirements Compliance Office Closed-loop product quality management across the extended enterprise QualityProfessionals Agile Quality Management Agile PLM

24 Agile PLM for Process Prototype, evaluate and optimize formulations and BOMs Manage packaging and labeling development process and data Manage supply chain entities and sourcing relationships, and collaborate with suppliers Ensure quality, safety and compliance Synchronize product data with internal systems and external data pools Create, manage and approve product data, from raw materials and components to finished products Manage cross-functional innovation portfolios, projects and activities

25 Enterprise PLM Leadership Strategy Continuity of Business Support current roadmaps and customer implementations Maintain openness to support customer ecosystems – multiple CAD environments, multiple ERPs (Oracle, JDE, SAP) Create Best-in-class, integrated, Enterprise PLM Flexible and extensible integration framework using open product definition leveraging Oracle’s standards-based Application Integration Architecture (AIA) – improve touch points Leverage Oracle assets to broader Enterprise PLM scope – PIM, SCM, CRM Increase pace of innovation – next generation PLM capabilities Demand driven product planning Collaborative Product and Process collaboration Capturing voice of customer – Requirements, Ideation, Feedback Composite Apps support across enterprises IP Protection Accelerate the adoption of Enterprise PLM, and position Oracle as the market leader

26 Why Oracle Agile for PLM? 4 Customer Success Best track record for customer success & referenceability in PLM Fastest TTV, Lowest TCO, Lowest Risk 5 CAD & ERP Agnostic; 100% (Enterprise) PLM Focused MCAD, ECAD, SW Integration Breadth; CAD & ERP agnostic approach 2 Broadest Enterprise PLM Solution Footprint Broadest footprint, strongest adoption outside mechanical engineering Supply chain, electronics, cost, quality, compliance, portfolio, decision support 3 Industry Domain Expertise & Best Practices PLM market leader with focus & presence across key EHT segments (computers, communications, consumer electronics, semiconductor, EMS/ODM) Deep domain expertise & best practices developed working with 800+ EHT customers 1 Business Ready Applications Out-of-the-Box, Configurable Applications Fastest Time-To-Implement & Lowest Overall TCO 6 Product Network Built & Proven Built for collaboration across enterprise & product network since inception Mature, out-of-the-box network capabilities; 100s of live ‘product network’ customers