JRAP GC Meeting Daniel Chong, GM for FSI Mar 3, 2008

© 2007 ORACLE CORPORATION 2 China Banking Landscape Tier 1 - Strategic 4 State-owned Banks (BOC,ICBC,ABC,CCB) Tier 2 - Named Share-holding Banks & Policy Banks (BOCOM,CMB,HXB,CMBC,CITIC,CEB,CIB, CPB,PBoC,ADBC,EIBOC,CDB etc…) Tier 3-Mid Market Regional Banks 118 CCB, 12+ RCB, 30,000+ Rural Credit Cooperatives (Being Consolidated) Subsidiaries China Banks Global Banks Source: CCID Consulting, Feb 06

© 2007 ORACLE CORPORATION 3 Tier 1 & Tier 2 Banks Overview

© 2007 ORACLE CORPORATION 4 Tier 3 Banks in China Regional Banks – 100+Regional Banks – In the process to revamp core-banking, back office systems Consolidation activities going onConsolidation activities going on Candidates for foreign investmentCandidates for foreign investment Listing RequirementsListing Requirements Regional Banking Program (EBS & OFSA) -Pre-configured templates -Shortened time to go live -Marketing events with selected partners -Co-sell model (vs pure resell model) -Reference selling (lighthouse accounts such as Ningbo, Nanjing, Chongqing CCBs)

© 2007 ORACLE CORPORATION 5 HK Major Banks Overview

© 2007 ORACLE CORPORATION 6 Taiwan Major Banks Overview

© 2007 ORACLE CORPORATION 7 Go to Market Initiatives in China Become a Customer Centric BankBecome a Customer Centric Bank -Customer data management, marketing, sales, service & support, and analytics Improve Operational Effectiveness of Corporate AssetsImprove Operational Effectiveness of Corporate Assets -Financials, HCM, procurement, project management Effectively Manage Compliance, Risk and PerformanceEffectively Manage Compliance, Risk and Performance -Profitability manager, risk management, internal controls manager, EPM Mid-Market (Regional Banking Program)Mid-Market (Regional Banking Program) -Simplified packaged deliverables HCM / iLearning in InsuranceHCM / iLearning in Insurance -HCM, Learning Management, I-expense Transforming to Flexible Core Banking ProcessTransforming to Flexible Core Banking Process -Core banking platform & solutions, consumer lending, lease management

© 2007 ORACLE CORPORATION 8 Best PracticeMarginalStable Operating Performance High Low Medium Priority Transformational “Longer Term” “Targets” “Secondary Targets” CRM – Loyalty & Marketing FMS Key Opportunity Areas Solution Priority Map Corebanking Lease ManagementWealth Management HCM GRC Basel II CRM – Sales Call Center Anywhere

© 2007 ORACLE CORPORATION 9AdvantageAdvantage  FSI Apps License annual compound growth = 58% for last 3 years  Oracle presence in China market: - 9 out of top 14 Banks use Oracle Applications - 2 out of top 4 Insurance companies use Oracle Apps - Top Tiered City Commercial Banks : Nanjing, Ningbo, Shanghai  A Accounts: BOC, China Construction Bank, Bank of Communications, PingAn Insurance, CPIC, Huaxia Bank, Shenzhen Development Bank, GDB  Maintains >80% win rate against SAP

© 2007 ORACLE CORPORATION 10 Challenges - External  Growth of implementation resources is lagging behind the high Oracle license growth rate in China FSI market – both in OCS and partner community  SAP aggressive push to win back FSI market share  In-house development culture of big state owned banks – ICBC, ABC  iFlex’s lack of presence and commitment in China market

© 2007 ORACLE CORPORATION 11 Challenges – Internal  Product Roadmap for EPM / OFSA  Pricing Strategy for emerging market  small but high growth enterprises  large enterprises with low HR cost, and low usage users (e.g. sales agents)  Localization – PeopleSoft HR  Sales Compensation on PA, EPB & Reveleus  Oracle / I-Flex engagement  Resources – CCA, Leasing

© 2007 ORACLE CORPORATION 12ConsiderationsConsiderations  Separate and larger China investment fund for Apps partner enablement – directed by Industry LOBs  Certification of multi-levels of consultants  At least 200 additional certified consultants in FSI within FY09  OCS investment to triple China resources in two years  Sales Plans on EPM, PA & Reveleus  Pricing strategy for emerging markets  Industry Thought Leadership Program  Overseas customer / speakers on best practice  Win / Go Live Stories  Sponsorship of Industry Trade Publications