Q What’s New, What Coming – Quadrem Solutions Chris Haydon, VP Solutions Management Procurement and Network © 2011 Ariba, Inc. All rights reserved.

2 The Market Wants Solutions to Improve Collaboration with Business Partners Now! $650B Impact of ineffective business collaboration: 2 © 2011 Ariba, Inc. All rights reserved.

Ariba Provides the Technology, Community and Capabilities to Connect and Simplify Commerce Processes… Technology platform for automating and optimizing commerce processes shared among all trading partners Community of enabled trading partners to quickly discover, connect and collaborate Capabilities (always-on expertise, business intelligence, commerce services, etc.) to drive rapid adoption and sustained success 3 3 © 2011 Ariba, Inc. All rights reserved.

4 …while “consumer-izing” the experience © 2011 Ariba, Inc. All rights reserved. 4 Make business commerce… as easy as personal commerce.

5 Quadrem Acquisition Accelerates the Vision Adds to Ariba’s long-term strategy to be the world’s business commerce network 100% on-demand with >70,000 sellers in 65 countries and 65 large buyers $30B in spend and invoice value Combined, Ariba and Quadrem assets include >400,000 collective buyers and sellers and >$160 billion worth of spend and invoices Broader coverage in Northern and Southern Hemispheres © 2011 Ariba, Inc. All rights reserved. 5

Quadrem Acquisition Accelerates the Vision (cont’d) Supports objectives of enabling more buyers and more sellers to collaborate more efficiently around more commerce in more regions around the globe Benefits to buyers Access to broader group of qualified, e-commerce ready suppliers for more efficient and cost-effective source-to-pay collaboration. Benefits to sellers Access to more business opportunities and more efficient and cost-effective market-to-cash process execution with a broader group of global buying organizations – all through a single interface. © 2011 Ariba, Inc. All rights reserved. 6

Quadrem 2010 Update Quadrem continued to extend its penetration and expertise in enabling collaborative procurement processes Spend Volume $31 billion Purchase to pay ratio 1 : 3.74 For every order, the number of other documents transacted 3.5 million purchase orders >70,000 Portal or XML connected sellers © 2011 Ariba, Inc. All rights reserved. 7

Quadrem 2010 Update Quadrem continued to extend is penetration and expertise in enabling collaborative procurement processes © 2011 Ariba, Inc. All rights reserved. 8

So, how are the Ariba and Quadrem solutions going to co-exist? Quadrem solutions organization to be integrated within the Ariba Solutions Management organization beginning April 1 Quadrem solutions have many functionality and processes that have been designed to support specific geographies and verticals While Ariba’s solutions have similar capabilities, the “devil is in the detail” The pathway to bring these competencies into a single solution set will take an extended period of time It is critical that customers from both platforms have no disruptions For the foreseeable future, the development of Quadrem’s core solutions will continue © 2011 Ariba, Inc. All rights reserved. 9

Quadrem’s Future Release Cadence For the foreseeable future, the present 10-week release cycle process will remain for Quadrem core solutions Orchestration Platform Supply Centre Source Centre Content Portal Supply Network Managers Customers on other third-party applications will be converted to Ariba’s solutions Quest  Ariba Sourcing SRM  Ariba P2O or P2P The conversion process will be planned in conjunction with customers 10 © 2011 Ariba, Inc. All rights reserved.

Quadrem Solution Roadmap Statement of Direction 11 © 2011 Ariba, Inc. All rights reserved.

Today: Current Features Benefits Quadrem ─ Tactical / Spot Sourcing © 2011 Ariba, Inc. All rights reserved. 12 Direct integration from ERP for simple RFQ Send only winning bid or all for ERP analysis RFQ upload / download via Excel for suppliers Portal for simple bid and award including multi- round bidding, templates and weightings All Quadrem Supply Centre suppliers enabled Reduce Cycle time ─ Vastly reduce the requisition to Order for ad hoc tactical items Expanded Supplier Participation ─ Templates to automatically include all suppliers for a category Automated awards ─ Through predefined templates and rules Improve effectiveness of professional sourcing resources by reducing tactical activities Supplier RFQ user interface improvements Improved templates and supplier bid field library Automated Spot RFQ award based on Buyer-determined rules RFQ Integration to Supply Network Manager Services RFQ Module Statement of Direction

20+ Business Process Collaboration scenarios  Order Management  Expediting / Order Status  Logistics + 3PL Integration  Invoice / Invoice Response  Services Any to Any Integration capabilities Alerts and Business rule compliance Automated two-way and contract compliance matching Document, Event and Process Orchestration Outsource Complexity of managing collaborative business processes Consistent and Unified supplier interactions and management Significant cost savings due to simplified and automated document processing Leverage existing ERP investments Unlock Spend Categories where deep buyer supplier collaboration is critical Today: Current Features Benefits Statement of Direction General Customer Enhancements Continue 10-week release cycle User Interface Improvements Service Manager – Buyers can “stare and compare” service entry / field tickets sheets against rules before direction to ERP Supplier Self Service for faster Integration testing Expand standardized business rules Quadrem Network ─ Collaborative Procurement © 2011 Ariba, Inc. All rights reserved. 13

Collaborative Procurement Challenge Prior to the Quadrem implementation, there were no standard methods of transmission for inbound and outbound documents with suppliers, and all electronic integrations were done in-house, which was high in cost and long in duration. Additionally, the lack of tools to enable suppliers to comply with Alcoa’s business processes created difficulties and a dearth of automated B2B processes drove inefficiency resulting in increased costs, resources and rework. Results Overview Suppliers enabled on the Quadrem solution had a 99.99% first time match rate of PO to Invoices A 56% reduction in paper invoice volume in North America and a 50% reduction in Australia due to invoices being transmitted through B2B. Internal buyers were freed to pursue cash generation activities that allowed the procurement organization to remove $2B USD in costs for Alcoa employs approximately 59,000 people and operates in more than 200 locations in 31 countries. Alcoa Global Procurement transacts with over 75,000 suppliers worldwide, producing over 5M purchase order and/or invoice lines annually. Solution Highlights Closed loop processing for Orders, Logistics and Invoice documents Automated expediting for Order Response follow up Supplier on boarding campaigns executed simultaneously on two continents Single integrated connection to Alcoa’s backend Oracle system Orchestrated multiple business process scenarios, managing complexity for both Alcoa and suppliers transparently © 2011 Ariba, Inc. All rights reserved. 14

VAT / Legal eInvoice Compliance  EU ─ England, Germany, France, Spain, Switzerland and Netherlands  South Africa, Chile, Australia Support both Advanced and Qualified signature models EU-based Archiving solution  Ready for suppliers and buyers Ad hoc Invoice creation & Upload Excel file Build Invoice from Contract / Catalogue for services Reduction in supplier calls to AP Reduction in errors and exception handling Significant cost savings due to simplified and automated invoice processing Productivity gains in processing non-PO and PO invoice payments Cost savings from automated matching of pricing terms to contracts Today: Current Features Benefits Statement of Direction VAT / Legal eInvoice Compliance  Expand South America ─ Brazil, Colombia and Mexico Invoice Exception Manager  Buyers can “stare and compare” invoices against rules before direction to ERP Payment visibility portal  Any supplier can login and view status of invoice and payments Suppliers can query on payments by date via remittance advice Quadrem Network ─ Financial Solutions © 2011 Ariba, Inc. All rights reserved. 15

Closed Loop Order & Invoice Management Challenge With >200 branch outlets and huge volumes of purchase orders and invoices, MMEM and its Buyer partners were seeking cost-effective and more efficient way to reduce transactional inefficiencies, errors and duplication associated with high-volume and low-value MRO supply. MMEM required a totally integrated solution to achieve a 100% migration from paper based to a fully electronic solution. Results Overview By covering the full spectrum of the Procure to Pay process via the Quadrem, MMEM was able to Increase order accuracy by 50% Eliminated time waste from administrative errors Shortened transaction and delivery cycle timelines Eliminated work duplication and data inconsistencies Minimized resource and technology development costs Gained one view data integration across departments and accuracy on reporting MM Electrical Merchandising became a foundation Quadrem supplier in 2001 and now annually exchanges more than 35,000 Procure to Pay documents electronically from Purchase Orders to Invoices Solution Highlights By using Quadrem’s Integration capabilities, MMEM has leveraged their automation capabilities for significant transactional volume relationships and is also able to manage smaller Buyer relationships by minimizing the resource and technology development costs of multiple integrations. © 2011 Ariba, Inc. All rights reserved. 16

Today: Current Features Benefits Statement of Direction Collaborative and automated corrective action planning and execution Mitigated risk by proactively monitoring supplier certifications and performance Integrate directly with ERP Efficient supplier assessment and qualification through community access Scorecard supplier performance on quantitative and qualitative measures Supplier On Boarding  Configurable and customizable supplier on boarding portals  Buyer self service supplier invite Supplier Data Management  Suppliers can upload data, attachments with validation, customizable by buyer  Approval Workflows Supplier Performance Management  Configurable surveys for suppliers and internal staff  Review, score and analyze results Integration – Use the portal or integrate to your ERP Advanced surveys including weighting factors Supplier communications / messaging Improved workflows for supplier data management More reporting options Single Sign on capability Custom analytics Quadrem ─ Supply Network Manager © 2011 Ariba, Inc. All rights reserved. 17

Extend leadership in spend management Increase the usability and adoption of Ariba Solutions Provide easier ways to manage cash and faster access to liquidity Expand participation of inter-enterprise collaboration Increase the number of business opportunities Simplify Supplier’s ability to do business across companies Reduce the number of methods which you use to connect to the cloud to cut cost and improve efficiency Stimulate organic growth without Ariba involvement Converge integrated, network-centric offerings Centralize the way you do business across companies Increase the number of reasons for Suppliers to participate in the Cloud Provide centralized supplier information for distribution and collection Ariba/Quadrem Solutions Innovation Focus © 2011 Ariba, Inc. All rights reserved. 18

Other Quadrem Platform Initiatives © 2011 Ariba, Inc. All rights reserved. 19 Invest in scalability and availability Continue Business Continuity / DRP investments Upgrade database technology Maintain Hardware replacement program Monitoring Improved business activity monitoring Refinement of technical and operational support escalation processes

Get involved on ariba.exchange.com Great source of market and solution knowledge We have created a Quadrem User Group to facilitate learning and knowledge transfer Volunteer to provide feedback to the Solution Manager for your product How to Get Involved and Influence Direction © 2011 Ariba, Inc. All rights reserved. 20

Questions © 2011 Ariba, Inc. All rights reserved. 21

© 2011 Ariba, Inc. All rights reserved. 22 “Safe Harbor” and Confidential Information Statement This information reflects the status of Ariba solution planning as of January All such information is the Confidential Information of Ariba (per the contract between our companies), and must not be further disclosed, as stated in the confidentiality clause of that contract. This presentation contains only intended guidance and is not binding upon Ariba to any particular course of business, product strategy, and/or development. Its content is subject to change without notice. Ariba assumes no responsibility for errors or omissions in this document. Ariba shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials.

Q What’s New, What’s Coming – Quadrem Solutions Chris Haydon, VP Solutions Management Procurement and Network © 2011 Ariba, Inc. All rights reserved.