Tomkins Spend Visibility Project Kick-off Meeting May 17, 2010 Keith Luers, C.P.M. SV Project Mgr

Agenda Introductions Spend Visibility Overview Project Scope Project Overview Roles Timeline Project Phases Data Acquisition Overview Enrichment Overview Designated Support Contacts Next Steps

Spend Visibility Overview Software and Solution Ariba Analysis Reporting UI Ariba Analysis Software Hosted Configurable database with reporting UI Ariba Data Enrichment Processing Engines, Supplier DB, Knowledge Base Ariba Data Enrichment Software Hosted Processing engine Supplier database Knowledge (rules/content) databases

Spend Visibility Overview Software and Solution Ariba Analysis Reporting UI Ariba Analysis Software Hosted or installed Configurable database with reporting UI Spend Visibility Fully hosted Analysis and ADE Project Management services provided to enable data collection and validation Data Enrichment services provided to classify transactions and enrich supplier information Standard data schema enables robust OOTB reports Web deployed Analysis user interface Ariba Data Enrichment Processing Engines, Supplier DB, Knowledge Base Ariba Data Enrichment Software Hosted or installed Processing engine Supplier database Knowledge (rules/content) databases

Spend Visibility Enables Best In Class Sourcing Visibility should be the launching pad for all sourcing and procurement activities Provides high level view of corporate spend for strategic planning Enables supplier evaluation for spend and parent/child leverage opportunities Fuels the drive for opportunity visibility Allows to answer key questions like - What we spend our money on and who we spend it with - across multiple source systems and company sites, etc Identify Opportunity Develop Strategy Source & Negotiate Implement Contract & Execute Monitor & Manage Invoice & Pay

Agenda Introductions Spend Visibility Overview Project Scope Project Overview Roles Timeline Project Phases Data Acquisition Overview Enrichment Overview Designated Support Contacts Next Steps

Project Scope Number of Source Systems: 17 Estimated Annual Spend: $2B Number of Users: 200 Max Initial Deployment: 12 months historical data (2 phases) Refresh Cycles: Quarterly Refresh Data: 3 months worth of data

Project Scope Service Level Agreement: Ariba certified commodity classification on a minimum of 90% of customer spend 95% accuracy of Ariba classifications when supported by data 90% accuracy of Ariba classifications when data does not support 95% accuracy Supplier enrichment for a minimum of 90% of customer spend 95% accuracy of parentage for Supplier Records with name and address information – minimum of country and city 90% accuracy of parentage for Supplier Records when no country or city information provided Implementation of customer “Custom Taxonomy” of up to six levels

Agenda Introductions Spend Visibility Overview Project Scope Project Overview Roles Timeline Project Phases Data Acquisition Overview Enrichment Overview Designated Support Contacts Next Steps

Project Overview: Roles Ariba SV Project Manager – Daily responsibility for execution of hosted Spend Visibility program ADES Manager and Team – Responsible for data enrichment process Tomkins Gates Customer SV Champion – Overall responsibility for success of Spend Visibility program Customer SV Project Manager – Daily responsibility for execution of Spend Visibility Manager (may be Champion) Business Owner(s) – Individuals who understand client business data from a user prospective, facilitates the validation spend based on extracted data (Typically one representative from each business unit) IT Owner(s) – Individual(s) within the client organization who own responsibility for data extraction and transformation if required

Project Overview: Timeline (Typical) Refinement 1 – 2 Weeks Deployment 1 Week Collect and Validate Data 4 - 8 Weeks Data Enrichment 5 – 9 Weeks Client Ariba PM ADES Extract data Approve Spend Train Client on Data Schema Initiate Analysis site deployment Receive, validate, and load data Review question sheets and provide feedback Review refinement drop in AA and provide feedback Train customer on SV Analysis Load final data, QA, publish Enrichment Assessment Set timeline Perform Enrichment Automated + Manual Apply Feedback

Project Phase: Data Collection & Validation Goal: To collect customer’s spend data in the most complete and form fitting way possible. Activities: Conduct the KickOff Meeting Train the customer on the data schema Proactively work with client on issues/questions to ensure spend data is collected in the right format Use the visibility tool to validate data which has been submitted. Extract data Approve spend Train Client on Data Schema Initiate Analysis site deployment Receive, validate, and load data Enrichment Assessment Set timeline

Project Phase: Data Enrichment Goal: To classify and enrich customer’s spend providing easy segmentation and thus visibility into spending patterns. Activities: - Coordinate enrichment and timeline with the ADE Manager Present project plan and timeline to customer Educate customer on Ariba Analysis Tool and Enrichment Process Load and Validate Enrichment results into the Ariba Analysis Tool Review question sheets and provide feedback Perform Enrichment Automated + Manual

Project Phase: Refinement ** Note will only do after 2nd cycle Goal: Educate the customer on building reports and the refinement feedback form Crete report templates Collect and apply feedback Combination of manual feedback and automatic through Analysis tool Review refinement drop in AA and provide feedback Apply Feedback

Project Phase: Deployment Goal: To publish the approved data on the customer’s instance and enable them to use their site Activities: - Load final data QA final data Push final data to Presentation Train customer on Analysis Customer satisfaction survey Train customer on SV Analysis Load final data, QA, publish

Tomkins Gates Specific Project Plan

Agenda Introductions Spend Visibility Overview Project Scope Project Overview Roles Timeline Project Phases Data Acquisition Overview Enrichment Overview Designated Support Contacts Next Steps

Data Acquisition Overview The Ariba Data Acquisition Schema A roadmap for the customer to create files in the proper format Helps the customer to define which data they want to include for upload Provides technical “do’s” and “don’ts” for the IT owner to follow in data extraction Defines the various tables and fields, and the requirements for their successful creation Is the primary and final reference for all matters relating to data extraction and file creation.

Data Acquisition Overview Where does the data come from? Spend Data refers to the accounts payable data or any other supporting data including but not limited to purchase order data, purchasing card data, and third party payable data which the client provides to Ariba for processing during the Spend Visibility project. This data may include transactional data and data identifying client suppliers from any accounts payable systems. A Source System generally refers to a standalone software installation where actual payment transaction data is available (typically AP systems). The creation of a complete data set for a given Source System may include feeds from multiple feeds a number of systems to augment the AP data.

Data Acquisition Overview Example of Related Systems Invoice (payment) information found in an AP system describes the transaction but does not contain a lot of related detail 1 invoice system = 1 SV Source System Supporting supplier detail may be found in a vendor master system 1 vendor master ≠ 1 SV Source System PO and item master detail may be found in an MRP system 1 MRP system ≠ 1 SV Source System Three separate source systems = 1 SV Source System

Data Acquisition Overview Example of Independent Source Systems Oracle = 1 SV Source System SAP = 1 SV Source System To capture all the spend, transactions from both Oracle AP and SAP AP are required = 2 SV Source Systems

Data Acquisition Overview Questions The following questions need to be answered prior to an extract being generated What constitutes an Accounts Payable (AP) Spend Event? Invoice entered for eventual payment Invoice receipt Invoice payment PO receipt Other? What types of transactions/spend should be included/excluded? Invoice supported by PO Invoice without supporting PO P-Card Expenses Check Requests Wire Transfers Intra/Inter-Company Payroll (should probably be excluded from extract) Other Transaction Types

Data Acquisition Overview Questions Which ERP date field should be used to determine transactions that are in scope/out of scope? Which timeframe should the extract include? 12 months per contract How should taxes be handled? Is it necessary to flag direct vs. indirect spend? Is it necessary to flag Internal vs. External Suppliers? Are there specific requirements for enrichment we should be aware of upfront?

Data Acquisition Overview – Next Steps A formal Data Acquisition Schema training will be right after this overview session The following team members should be present: Ariba Project Manager Customer Project Manager Business Analysts or Business Users IT Resources (person(s) performing extracts)

Agenda Introductions Spend Visibility Overview Project Scope Project Overview Roles Timeline Project Phases Data Acquisition Overview Enrichment Overview Designated Support Contacts Next Steps

Data Enrichment Overview The Ariba Data Enrichment (ADE) team will focus on two areas for enrichment: Supplier - Provide parentage and enriched supplier information. Invoice - Classify to a commodity code based on descriptive and ‘hint’ fields available in the customer-provided data. You have probably already seen this slide, it is the basic activities and tools that exist during the classification and enrichment phase.

Data Enrichment Overview The following fields will be used to assign supplier parentage during the supplier enrichment: Name Address City State Zip Code Country

Data Enrichment Overview Supplier Enrichment Example Outcome Spend with the Palmer House Hilton was $4,456, but total spend with Hilton Hotels Corporation as a parent is $577k Ariba Data Enrichment enriches and classifies your supplier spend using multiple sources of continuously updated data. In addition to our internal database of millions of global suppliers, Ariba licenses information from 3rd party supplier experts in N. America and globally. Enriched Supplier Parent Enriched Supplier Supplier Provided

Data Enrichment Overview Supplier Level Hierarchy in Analysis Level 1 (highest): Active Supplier / Low Activity Supplier Shows enriched supplier parent for top 75% of spend or line items. The remaining 25% is grouped in one value as Low Activity Suppliers Level 2: Supplier Parent (enriched) Parent of raw supplier as enriched For the active suppliers, this will be the same as Active Supplier Level 3: Supplier (enriched) Supplier name after it has been Enriched Level 4: ERP Supplier Raw supplier as imported from source system (ERP) Basis for supplier dimension

Data Enrichment Overview The following hint fields will be used to help perform classification during the invoice enrichment: Invoice & PO Descriptions Part Descriptions Suppliers ERP Commodity Descriptions GL Accounts Invoice Flex Fields (1-3)

Data Enrichment Overview Invoice Classification Example Ariba Data Enrichment enriches and classifies your supplier spend using multiple sources of continuously updated data. In addition to our internal database of millions of global suppliers, Ariba licenses information from 3rd party supplier experts in N. America and globally. Customer Provided Information Ariba Classifications This example shows how the ADE classification process looks at multiple sources of information to make a classification to UNSPSC

Data Enrichment Overview Invoice Enrichment Ariba Analysis allows users to report on invoice commodity classifications using the following fields UNSPSC – United Nations Standard Products and Services Code ACT – Ariba Classification Taxonomy

Data Enrichment Overview UNSPSC Level 1: Segment Example: 44 – Office Equipment, Accessories and Supplies Level 2: Family Example: 44 12 – Office Supplies Level 3: Class Example: 44 12 19 – Ink and Lead Refills Level 4: Commodity Example: 44 12 19 03 – Pen Refills Make sure to note that Ariba does not do additional research for this information. Information that is provided by our sources are used.

Data Enrichment Overview ACT Foundation is UNSPSC New codes are being constantly added from 3 different sources: Newer version UNSPSC table when it is available. Leverage other industry taxonomies as benchmarking (e.g. Wand, eClass, NATO etc) SV customers' specific needs (e.g. Ingredients-Fruits-Fresh Fruits-Fresh Oranges) Offers six level - allows more detailed classification results than UNSPSC Make sure to note that Ariba does not do additional research for this information. Information that is provided by our sources are used.

Data Enrichment Overview ACT Level 1, Example: Chemicals including Bio Chemicals and Gas Materials Level 2, Example: Compounds and Mixtures Level 3, Example: Inorganic Compounds Level 4, Example: Inorganic Acids Level 5, Example: Nitric Acid Level 6, Example: Pure Nitric Acid Make sure to note that Ariba does not do additional research for this information. Information that is provided by our sources are used.

Data Enrichment Overview Data Enrichment Classification Methodology Source Data Hints Supplier Name Supplier Address Expense Description GL Account Commodity Description Part Description Invoice Description other hints Supplier Engine Rationalization Business Rule 39M+ Supplier Database Matching & Parentage Enrichment: Industry (SIC and NAICS), Revenue Text Reading Learned Models Custom Mapping Custom Rules Inference Engine Weighted Triangulation Enriched Spend Data

Agenda Introductions Spend Visibility Overview Project Scope Project Overview Roles Timeline Project Phases Data Acquisition Overview Enrichment Overview Designated Support Contacts Next Steps

Designated Support Contacts Designated Support Contact (DSC)* Allows the user to submit administrative requests including: Master data updates, site customizations, legal agreement changes, and enhancement requests. Acts as liaison for end-user requested changes Interfaces with Ariba regarding end-user issue trends DSCs automatically receive the following types of notifications: Scheduled/unscheduled downtime Security information/bulletins Information on new product releases, new features and service pack availability Full access on Connect.ariba.com *Designated Support Contact access is available for up to 3 contacts per solution. If you have any questions, please contact supportservices@ariba.com.

Becoming a Designated Support Contact Register on Connect Navigate to https://connect.ariba.com Click the “New User” link Complete the brief registration form After you set up your account, you will receive an email from Connect Support when your account is activated. Please respond to the email from Connect Support and request DSC access. If you have any issues logging in or creating the account on Connect, send an email to connect_support@ariba.com.

Agenda Introductions Spend Visibility Overview Project Scope Project Overview Roles Timeline Project Phases Data Acquisition Overview Enrichment Overview Designated Support Contacts Next Steps

Next Steps Data schema training Receive/review extracted data Begin uploading and validating data Validate and approve spend Enrichment Process Automated Process Manual Process Refinement drop and feedback Deployment Survey

Instance Set-Up (Hosted Site) URL Convention http://tomkins.sourcing.ariba.com/ Currencies USD Default Up to 5 additional Unit of Measure Metric (gram, kilometer) US (pound, mile) Source Systems Quantity - 17 Names – see supplied list to fill out

Communications Plan Weekly Status Call (best days/times?) Weekly Project Status Report & Project Plan

Support and Escalation Project Manager – Keith Luers,C.P.M. Data Issues / Day to day project support Analysis support and training kluers@ariba.com 719 260 6333 Spend Visibility Support https://connect.ariba.com Analysis site via a webform 1-866-218-2155