1. Smarter Retailing Dilip Popat Managing Director, EMEA Retail Industry Unit Microsoft Corporation dilippo@microsoft.com

3. Agenda People at the core Update of Smarter Retailing Our Overall Direction In Retail Partnering for Success Q&A

4. Business Growth

5. The Role of People

6. The Role of Microsoft The Role of Software The Role of Microsoft

7. People are the critical differentiator for Retailers

8. The Vision, Strategy and Blueprint For Leveraging The Shift To The Edge Vision Strategy Blueprint We will facilitate integrated innovation at the edges of the retail enterprise and enable retail solutions that allow our customers to be agile in an ever-changing landscape Enable retailers to fundamentally change the rules of the game in the store environment through visionary technology leadership Smarter Selling Smarter Operations Smarter Shopping 8

9. Industry Focus Leveraging the power of the platform to meet industry requirements Building strong eco-system of industry partners Building industry expertise to address customer business needs Smarter Shopping Microsoft Smarter Retailing Smarter Selling Smarter Operations

10. ConsumersSupply ChainStore Devices Information People Systems

11. In-Store Promotion Services Store Labor Management Services Store Management Services Smarter Selling Infrastructure Connecting Consumer Interaction And Decision-making With Enterprise Information And Capabilities Smarter Operations Reports and Metrics Services Store Inventory Management Services Customer Interaction Services Sales Services Channel Coordination Services Store Experience Services Smarter Shopping Customer Insight ServicesData and Tech Management Services Analytic Services Real Time Services Location Services Central Office Integration Services Information Execution Legacy

12. Smarter Retailing in Action : Some High Lights 275,000 POS Terminals in EMEA WEPOS launched with Pilots Many Enterprise Wins to transform Retailing Major Customer References Strong Ecosystem of Partners built This is our biggest RTC!. First EMEA Partner Advisory Board June 2004 2 nd Customer Advisory Board meeting in Feb 2004 Industry Momentum Building

13. Building Momentum in the Industry EPS and CIO Summits – 4 to 6 October, Lisbon Manhattan Momentum – 4 to 6 October, Newport Wales CIES Conference – 7 and 8 October, Paris JDA/Microsoft events 7 and 8 October, Copenhagen 11 and 12 October, Stratford-on-Avon 14 and 15 October, Paris EMEA Retail Technology Conference – 4 and 5 November, Barcelona RAD Awards Dinner – 4 November, Barcelona NRF Conference – 16 to 19 January, New York Wincor World – 25 to 27 January, Paderborn EMEA Retail Customer Advisory Board –1/ 2 Feb Euroshop – 19 to 23 February, Düsseldorf Global Retail Technology Forum – 9 to 11 March, Barcelona Partner Advisory Board Meeting- June 2004 Analysts Day – June 2004

14. Windows CE 3.0 Small-footprint, robust, high-performance next-generation embedded platformSmall-footprint, robust, high-performance next-generation embedded platform DOS/Win32 *and other proprietary operating systems 2000 1999 circa 1980/90s 1994 2001 2005 Windows Vista (Standard) Future Windows Embedded for Point of Service  Industry-specific operating system from Microsoft  Supports POS for.NET enabling peripheral plug-n play Windows XP Embedded  Fastest adopted operating system in industries’ history ActiveStore  A2A integration > now ARTS IXRetail  Retail-hardened middleware > now Embedded PG OPOS  Now worldwide de-facto Standard for industry- specific peripherals A decade in POS 2004 Windows CE 5.0

15. Customer Success Stories Access and analyze real-time POS data Over 50% more fraud cases detected Windows XP embedded on 28000 POS Lanes Multi-channel integration using Windows XP Mediacenter Easy shopping using the remote control Music Download service on a end to end MS Platform Build and manage central data warehouse ”For the first time we’re actually on top of the business”

16. Gets Bigger and Better! RFID Item level tagging. French-based global hospitality player has rolled out an intranet site through which employees around the world can collaborate. Implemented three new store solutions utilizing the Microsoft.NET platform and the Windows XP Embedded operating system a counter weigh-scale solution, a hand-held order-picking device to facilitate home shopping, and a kiosk solution Norway’s largest grocery retailer became the first retailer globally to deploy a point-of-service solution running Microsoft’s Point of Service (WEPOS).

17. The Next Steps on the Journey

18. 6% 21% 21% 45% 52% 56% 58% 0%20%40%60%80%100% Shareholder pressures Sarbanes Oxley follow-up High staff turnover Vendor consolidation Customer intimacy Real time visibility Capital constraints Source: 15 th Annual Retail Technology Trends Survey conducted by RIS News and Gartner, March 2005 Key Retail Concerns Over The Next 3 Years Store level IT investment 18%

19. Retail Sector Hype Cycle, 2005 Technology Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity Maturity Visibility Acronym Key CRMCustomer relationship management RFIDRadio frequency identification As of July 2004 Collaborative Planning ContactlessPayments Corporate and Store Business Intelligence CRM Electronic Shelf Labels In-Store Wireless Deployment (Customer Facing) Labor Management and Scheduling Tools Markdown Optimization Merchandising Merchandising and Category Analytics and Optimization Multichannel Integration Price Optimization Retail (Supplier) Extranet Product Content and Data Management Promotion Optimization JAVA based Based POS Software RFID (Case/Pallet) RFID (Asset) Biometric Id In-Store Wireless Deployment (Store Operations) Mobile POS Global Data Synchronization Digital Signage Store task Management POS Integrated Demand and Replenishment Planning Kiosks Self-Checkout Less than two years Two to five years Five to 10 years More than 10 years Key: Time to Plateau RFID (Item) Technologies of interest to MS X Next-Generation Retail OS for POS X RFID item X In store customer deployment X Promotion opt X Mdse and Ca anal @ optim X Rfid asset X Markdown optim X Global data sync X RFID case and pallet X Price optim X Corp and store bus intel X Multi channel integ X Mobile POS X CRM Desktop publisher The below technologies are of most interest to MS. Can you increase the font size of these so they stand out better Can we do this as a build. So the chart looks like this to start. Then I’ll page down and the technologies that MS cares about stand out Next Gen retail OS for POS

20. Solutions Focus Point of Service Supply Chain Mgmt Enterprise Collaboration BI Multi-Channel Retail Deeper Relationships with Partners Microsoft In Retail Our Top 5 Priorities Remain Unchanged! #3 Industry Priority Solution Scenarios Job #1 CustomerSatisfaction! Job #2 PartnerSatisfaction #4 Retail Hardened Windows Embedded for POS BizTalk Server RFID Services #5 Driving Standards OPOS ARTS – IXRetail, UPOS GS1EPCglobal Global Focus & Dedicated Team Predictability Licensing Support

21. Smarter Retailing - focused Areas

22. Supply Chain Management Merchandise Management Supply Chain Management Planning Enterprise Business Intelligence Real-time retail Customer Value Accelerator BusinessIntelligence Content management Commerce management Payments Catalog management Distribution Multi channel integration Multi-channel Information distribution Training Inventory Control HR access Store financial reporting Store manager’s workbench EnterpriseCollaboration Point of Service Customer servicing Inventory & Order Management Point of Service Microsoft Focus area in the past Enterprise Focus

23. Achieving Success Together From Product Focus To Integrated Innovation and Interoperability From Transaction Excellence To Relationship Excellence From Technology Success To Business Success

24. Next Big Bets in Smarter Retailing Business Intelligence Point of Service Supply Chain Management Enterprise Collaboration Base Architecture Multi-channel Retail

25. Engaging with Partners Develop joint value propositions Industry Solutions focus Working with Industry mgrs Develop reusable assets Develop sales and marketing plans Deliver Lighthouse wins as key References Market visibility through events/Publications/PR Agree Target accounts Align with account team Joint account plans Evaluate and Review progress Wins Revenue

26. MS Solutions for Growth

27. EMEA Retail Team