Value Chain Planning Overview Take Away: This presentation is intended to highlight those solutions within the broad Oracle SCM product portfolio (including supply chain planning, fulfillment, PLM, procurement, manufacturing and asset Management applications) which address the highest priority business objectives in today’s uncertain times. Customers traditionally deploy Oracle SCM solutions to address business challenges related to 3 core value propositions – (1) to enable Operational Excellence, (2) to accelerate innovation & growth and (3) to manage supply chain & operations risk & compliance. In today’s uncertain times, we are finding that customers priorities clearly tend to focus on value chain initiatives related to Cost, Efficiency & Risk. Value Chain Planning Overview Enables leading edge and transformational business processes Larry Du Sales, Value Chain Planning, China August 2010

Safe Harbor Statement 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 decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. Before we start ...

Realities of the New Business Environment Change in Inventories 2004-2009 Continued focus on cost containment and productivity Lean supply chains with lower inventories Increasing levels of supply chain and enterprise risk Heavy scrutiny on corporate performance and compliance Controlled capital expenditures Sustainability emerges as a key strategic priority Continued focus on emerging markets and globalization Industrial Production Index 2004-2009

Manage for Recovery Strategies that you should focus on today! Challenges Strategies Demand uncertainty and volatility Sense demand in real-time and shape for revenue growth Misalignment of financial and operational plans in continuously changing business conditions Profitably align demand and supply to corporate goals Lack of responsiveness and inflexibility in supply network Improve agility and react quickly to supply chain events Lack of proactive insight into the impact of your decisions Continuously monitor enterprise and supply chain performance

How Delivers So let’s now talk on how Oracle delivers a better solution …

Oracle Value Chain Planning Solution Complete ● Open ● Integrated ● Modular Service Parts Planning Demand Signal Repository Global Order Promising Demand Management and Advanced Forecasting Strategic Network Optimization Production Scheduling Adv. Planning Command Center RT Sales and Operations Planning Trade Promotion Planning and Optimization Collaborative Planning Deductions and Settlement Management Rapid Planning Advanced Supply Chain Planning Single source of truth Integrated with ERP

Integrated with other Key Solution Assets AIA AIA AIA AIA AIA AIA Oracle Value Chain Planning is integrated with other best-in-class assets that Oracle acquired and is interoperable with your ERP system. We are going to release the Hyperion integration with Demantra 7.3 and have already integrated the solution with Siebel and GLOG. Our platform is OPEN enough to build other integrations ahead of our Development doing so if that is what is key for your business. Legacy Systems

Oracle Value Chain Planning Solution Complete ● Open ● Integrated ● Modular Continuously monitor enterprise and supply chain performance Sense demand in real-time and shape for revenue growth Sense demand closer to the point of consumption with real-time visibility to demand events Improve forecast accuracy through advanced analytics and improved consensus forecasting Shape demand via integrated promotions planning Manage new product introductions and marketing to shape demand and maximize revenue Profitably align supply and demand to corporate goals Maximize sales and improve execution by balancing supply and demand in a continuous S&OP process Connect financial and operational planning via integrated business planning Quickly simulate alternate business scenarios Involve all key decision makers into an integrated iterative process Oracle Value Chain Planning enables you to focus on 3 key areas of importance: PREDICT: (talk through bullets) SHAPE: (talk through bullets) ALIGN: (talk through bullets) Improve agility and react quickly to supply chain events Design your supply chain for agility Plan your extended value chain with holistic supply planning and scheduling Quickly respond to supply chain events with event-driven planning

Achieve benefits incrementally Crawl, walk, run approach – Focus on the most important problem first ! PRODUCT BUSINESS AREA FULL SOLUTION Demand Management Value Chain Planning Supply Planning Sales and Operations Planning Start with a base and plug-in new components incrementally Reconfigure without reimplementation

Many customers across all industries Look at the below logo, Subaru Discrete Manufacturing Process Manufacturing Consumer Goods / Distribution High Tech

Value Chain Planning – Analyst Feedback S&OP – Gartner 2008 Supply Planning – Gartner 2009 IDC - Inventory Optimization 2009 “Oracle offers a robust S&OP application with Advanced Supply Chain Management and Demantra Demand Management” - AMR, 2008 “Oracle’s breakthrough with Demand Signal Repository could change the way consumer goods manufacturers leverage a wide variety of available data sources.” - AMR, 2008

Oracle Value Chain Planning Reduce planning cycle time and make faster decisions continuously Sense demand in real-time and shape for revenue growth Profitably align supply and demand to corporate goals Improve agility and quickly react to supply chain events Continuously monitor enterprise and supply chain performance So let’s look at all these areas in more detail, starting with rapid what-if planning …

Sense demand in real-time Leverage demand insights to improve consensus demand Leverage demand insights to drive growth Sense demand closer to the point of consumption with real-time visibility to demand events Analyze the effectiveness of promotions at retailers and distributors Reduce time and effort to collect external market data Improve forecast accuracy through advanced analytics and consensus forecasting Move from a regimented periodic to a continuous demand planning process that involves all key constituents Leverage advanced analytics to more accurately predict demand Use any combination of quantitative or qualitative data to establish your base line forecast Generate granular forecasts based on attributes and characteristics Use multi-dimensional analysis to adjust, allocate, and rollup From an isolated process to a full Demantra solution within six weeks of going live our ‘A-items’ improved 45% in accuracy. – Sagi Srinivas, Director, Supply Chain Systems, BiosenseWebster

Shape with integrated promotion planning Understand the financial and operational impacts of sales incentives Shape demand via promotions planning Understand the true impact of promotions and marketing instruments Simulate volume and profitability of future promotions and optimize promotional events Perform what-if analysis to understand the impact of varying promotional tactics Implement profitable sales and marketing strategies that are feasible to execute Manage new product introductions to maximize revenue Evaluate cannibalization of existing products on revenue and inventory goals Determine optimal timing of product launches and align them to financial goals Determine price breaks and promotions that can be leveraged for sell-off or ramp-up

Oracle Value Chain Planning Reduce planning cycle time and make faster decisions continuously Sense demand in real-time and shape for revenue growth Profitably align supply and demand to corporate goals Improve agility and react quickly to supply chain events Continuously monitor enterprise and supply chain performance So let’s look at all these areas in more detail, starting with rapid what-if planning …

Profitably align supply and demand Maximize sales and improve operations via a continuous S&OP process Traditional S&OP process Move from a periodic reactive to a real time, iterative, and proactive process Reduce decision-making time by aligning financial and operational plans Engage management with executive dashboards that drill to root cause Drive tactical decisions into operational planning and execution, and monitor performance Start quickly with best practice templates and easily adapt to your business – evolve at your own pace Finance Supply Product Demand Interactive, extended S&OP process Sales Operations Marketing Demand sensing and shaping Trade Management Supply planning Continuous S&OP Finance Financial Planning Product Planning Risk Management Strategy Engineering * Planned for future

Cummis Power Generation Expected Business Benefits: Improve S&OP planning cycle time Reduction of inventory Improve forecast accuracy and customer service levels Adoption of a low cost producer strategy Become a truly global business COMPANY OVERVIEW Cummins Power Generation's strength comes from being a division of Cummins Inc. - the world's largest manufacturer of diesel engines over 200 hp, with annual sales of $6.3 billion. Cummins Power Generation has unique expertise in that all aspects of generating set design, manufacture and service have been brought together in one company. All the major components - the engine, alternator and control systems -- are manufactured by divisions of Cummins. The implementation of a global demand solution will: Provide global visibility to demand - one demand source model for the business Improve and provide measurements for global forecast accuracy Enable management by exception Provide a global collaborative forecast environment Become an enabler for more accurate and rapid planning cycles Develop and provide accurate component level demand forecasts to our internal and external suppliers Be able to synchronize operational, tactical, and executional planning CHALLENGES/OPPORTUNITIES Lack of global demand visibility Current S&OP was very manual with multi versions of excel spreadsheets and access databases.  No closed loop process Data never in sync SOLUTIONS (a win in Q4, FY10) DP (Demand Planning) ASCP (Advance Supply Chain Planning)

Emerson COMPANY OVERVIEW Diversified global manufacturing and technology company serving industrial, commercial, and consumer markets around the world. Industry: Diversified Employees: 140,000 Revenue: US$ 24.8 Billion CHALLENGES/OPPORTUNITIES Global Planning and Visibility Multi-tiered collaborative planning (inter-company planning) S&OP Processes Visualization of Key Performance Indicators Demand Planning Top-Down / Bottom-up Mix Analysis Automated Mix planning and Forecasting Manage planning process by exception Roll out to 10,000 user community SOLUTIONS Oracle Demantra Demand Management Oracle Demantra Real Time Sales and Operation Planning Oracle Advanced Supply Chain Planning Global Order Promising Oracle Collaborative Planning Hyperion Planning Oracle Configurator CUSTOMER PERSPECTIVE “Demantra is one of the most solid products I have seen. I give (Demantra) an A+ for the stability of the application for our business” - Deb Bene – Business Solutions Manager RESULTS Reduced global Inventory using ASCP Configure to order forecasting of more than 16 billion combinations Improved return on assets Improved customer loyalty Achieved global demand management Deployed effective sales and operations planning Integrated S&OP and Financial Planning Deb Bene will uptake

Emerson

Connect Finance and Operations Challenge: misalignment between financial and operational plans Financial Planning Financial plans do not reflect operational realities Revenue forecast is unreliable as it not adjusted to reflect operating forecast Strategic financial plans lack bottom up validation Financial planning uses discrete periods and looks backwards Sales and Operations Planning Operating plan not directly aligned to financial targets Impact of demand and supply changes not visible to finance Operating plan has little top-down validation and decisions made without considering financial impact Operating plan is continuous and forward looking

Connect Finance and Operations Solution: Integrated business planning via Hyperion integration Sales and Operations Planning Performance Management Financials Targets Sales Forecast Strategic Network Optimization Demand Management Inventory Optimization Supply Chain Planning Replace manual, intermittent, and disconnected process with a continuous, interactive, holistic Integrated Business Planning process Inject operational reality into Financial Plans and ensure financial viewpoint is embedded in the Operational planning process; top-down $’s to bottom-up units synchronization What-if simulation to examine alternative scenarios and evaluate financial impact of decisions Out-of-the-box AIA-based integration

Simulate alternative business scenarios Advanced Planning Command Center Compare alternative business scenarios Planners execute scenarios Automatically translate detailed planning information to corporate metrics Track assumptions and attach supporting documents Approve and drive into execution Choose your baseline plan Drive tactical and execution decisions Monitor Continuously monitor performance and get real-time visibility to deviations Suggested alternatives for evaluation Demantra DM ASCP / SNO IO Planners execute assigned activities And from the high level, you can drill down to the next level and show the details without having to jump into the power user interfaces but with the ability to do so when working with the planners. Advanced Planning Command Center provides robust Scenario Management which enables you to define business planning scenarios for which you can assign tasks (activities) to planners for execution. You can also attach key documents as backup to the scenarios that need to be implemented, such as results of a financial analysis or external market data and industry reports. Business scenarios Assigned activities

Oracle Value Chain Planning Reduce planning cycle time and make faster decisions continuously Sense demand in real-time and shape for revenue growth Profitably align supply and demand to corporate goals Improve agility and react quickly to supply chain events Continuously monitor enterprise and supply chain performance So let’s look at all these areas in more detail, starting with rapid what-if planning …

Improve agility and responsiveness Enable successive and continuous refinement Network design and inventory strategy Tactical supply planning Supply network Sourcing and Postponement strategy Plan your extended value chain with holistic supply and distribution planning Improve demand fulfillment through constrained order promising Improve production throughput with plant level scheduling and monitoring Improve supply chain visibility through collaboration with trading partners Respond to changing markets and product mix changes Adjust supply network while preserving future growth Develop supply chain risk mitigation strategies Business Scenario Simulation (strategic, tactical, operational) Supply network Sourcing and Postponement strategy Tactical Supply Plan React quickly to supply chain events Empower planners with rapid what-if scenario simulation Leverage embedded analytics in UI for insightful analysis while making rapid decisions Translate decisions in actions Event-driven simulation

Customers Live on SNO, IO, ASCP Project to rationalize distribution centers during merger of Pet Foods and Pillsbury Foods Reduced warehouses from 23 to 9 Held service levels constant despite reduction in facilities Significantly reduced transportation costs Determines allocation to produce most profitable product mix within existing constraints Performs all planning at the family level S&OP composite picture in real time during review sessions Reduced planning cycle time – Eliminated spreadsheets Integrated sales and operations planning process resulting in one consensus forecast number Deployed for one product family (700 products, 5000 items) since May 2006 Multi-echelon supply chain network (14 levels deep) Improved forward visibility and understanding of impact of inventory on service level Part of S&OP process: quantitative understanding of inventory investment to achieve sales upside 20-30% improvement in service level for the same inventory investment Daily holistic plan across projects and across businesses: 8 manufacturing plants, 6 distribution and 10 consignment warehouses Connected businesses processes and automated exceptions Constrained order promising Reduced inventory levels by $20M per year Reduced delivery cycle by 10% for new equipment orders Improved fulfillment rate for service parts Reduced planning cycle time to daily Here are some sample customers that have gained benefits from implementing tools like SNO and IO to anticipate and control supply chain variability and risk.

Large Automobile Manufacturer, Germany Live on Strategic Network Optimization Company Leading automotive manufacturer with annual revenues over $52 Billion Manufacturer of automobile and motorcycle products Planning problem solved Assess risk of currency fluctuations on manufacturing allocation Unique aspects of implementation Time varying currency forecasts for USD and Euro Complex coordination between engine and auto platform manufacturing Product launch sourcing decisions based on capacities, costs, currency, regional demand and regional priority And here is an example of an Oracle Strategic Network Optimization customer solving a similar problem. Increased new product profitability due to optimal manufacturing sourcing Improved risk management by considering multi-currency impacts

Oracle Value Chain Planning Reduce planning cycle time and make faster decisions continuously Sense demand in real-time and shape for revenue growth Profitably align supply and demand to corporate goals Improve agility and react quickly to supply chain events Continuously monitor enterprise and supply chain performance So let’s look at all these areas in more detail, starting with rapid what-if planning …

Monitor profitability and performance Advanced Planning Command Center – 360 degree visibility Compare alternate scenarios Analyze key Planning metrics Drill down to relevant details To make supply chain decisions effectively, you need to be able to have a complete 360 degree view of supply, demand, finance, capacity data and their related exceptions. Oracle Advanced Planning Command Center enables you to see that at different levels of aggregation across the key dimensions that your business operates on and be able to drill down to details as required. APCC comes with out-of-the-box rich content dashboards for S&OP and Supply Plan analysis to provide a quick starting point. Analyze constrained forecast Analyze profit and loss

Enable closed-loop processes Plan->Execute->Measure->Improve Increase in late shipments Sudden demand spike For example: a Supply Chain Executive sees a large increase in late shipments in the latest supply plan They drill down to see the cause and it is due to spike in demand from an important customer There isn’t enough supply to fulfill the demand This is caused by a critical resource being overloaded Resource overloaded Supply shortage 29

Roadmap To summarize …

Value Chain Planning – Roadmap FY2010 VCP 12.1.3 Rapid Planning 1,1 Advanced Planning Command Center 2.0 (Risk, SPP, Web 2.0, S&OP, SCA, PTP) Service Parts Planning replenishment enhancements Demand Signal Repository 2.0 Production Scheduling support for CMRO FY2009 Rapid Planning 1.0 PSFT-Demantra Integration PIP JDE-VCP integration PIP VCP 12.1.2 PS and SNO enhancements APCC standalone Service Parts Planning enhancements ASCP enhancements IO intermittent demand support VCP 12.1.1 Adv Planning Command Center 11i.10 integration DSR enhancements Demantra 7.3 Integrated Business Planning through Demantra S&OP – Hyperion integration Internationalization support for Demantra Demand Management capabilities for CTO, NPI forecasting, and attribute forecasting Performance and usability improvements Demantra 7.3.1 S&OP Rapid Planning integration S&OP modeling enhancements Comprehensive Trade Management enhancements Exception management enhancements Performance improvements 31

Summary Let’s talk next about the architecture behind all this

Key Takeaways Complete - Best-in-class solution to solve all your key planning problems Sense demand in real-time and shape for revenue growth Profitably align supply and demand to corporate goals Improve agility and quickly react to supply chain events Continuously monitor enterprise and supply chain performance Open - Architecture that blends in with your existing systems Integrated - Provides lower cost of ownership and quick deployment Pre-built integration with Oracle EBS, JDE EnterpriseOne, Peoplesoft* Modular - Enables gradual deployment Focus on most important problem first – Common platform foundation Expand gradually to full solution without redoing setup and configuration I’d like to wrap up with the following key takeaways … * Future

Our View Of Best Practice Integrated Supply Chain Framework Suppliers Strategic Planning (Yearly / Quarterly) Customers Procurement Strategy Production Strategy Inventory Strategy Product Strategy Market Strategy Financial Plans Tactical Planning (Monthly / Weekly) Sales & Ops Planning Supply Planning Collaborate Purchase Planning Inventory Planning Capacity Planning Collaborate Demand Planning Operational (Daily / Transaction) Collaborate Collaborate Order, Purchase, Production, Inventory, Financials Customer Relationships Management Transport Planning & Execution Warehouse Management Production Execution