1. Copyright © 2008, Oracle and / or its affiliates. All rights reserved.1

2. Oracle Integrated Operational Planning Align Operational Plans with Financial Goals Hari Sankar Oracle EPM Products

3. Copyright © 2008, Oracle and / or its affiliates. All rights reserved.3 Agenda Business planning challenges Oracle Integrated Operational Planning Solution Overview Hyperion Planning & IOP Oracle IOP demo Customer success

4. Copyright © 2008, Oracle and / or its affiliates. All rights reserved.4 The Business Planning Problem The Finance-Operations Disconnect Finance divorced from operational reality Simplistic operational models and drivers One way communication with operations No way to calculate operational feasibility of the plan leading to… missing the forecast Operations misaligned with financial goals Detailed models to drive execution, not to dialogue with finance Simplistic financial linkages No way to evaluate financial impact of operational plan leading to… adverse financial results

5. Copyright © 2008, Oracle and / or its affiliates. All rights reserved.5 Today’s Integrated Planning Process Blood, Sweat and Excel ERP System Functional Operational Planning Demand Management Customer Management Human Resources Planning Supply Planning Product Performance Management Logistics Planning Financial Planning Long-Term Financial Planning Treasury Management Financial Planning & Budgeting Working Capital Planning Profitability Management Performance Scorecards

6. Copyright © 2008, Oracle and / or its affiliates. All rights reserved.6 Integrated Business Planning Bridging the Finance-Operations Disconnect ERP System Functional Operational Planning Demand Management Customer Management Human Resources Planning Supply Planning Product Performance Management Logistics Planning Financial Planning Long-Term Financial Planning Treasury Management Financial Planning & Budgeting Working Capital Planning Profitability Management Performance Scorecards Integrated Impact Analysis Financial Performance Modeling Strategic Operational Modeling

7. Copyright © 2008, Oracle and / or its affiliates. All rights reserved.7 What is Integrated Operational Planning Business planning layer complementing functional planning systems Rough-cut modeling appropriate for business decision making Replaces patchwork of spreadsheet models Integrated cross-functional planning models Captures financial targets and operational constraints in a single framework Integrated business impact analysis Interactive what-if scenario analysis Transparent planning models with business user control Enables iterative planning and decision making 1 2 3 1 2 3

8. Copyright © 2008, Oracle and / or its affiliates. All rights reserved.8 Change-Based Data Modeling Core Technology Behind IOP 1.Modeling of operational constructs Rich expressiveness in modeling & calculation logic Complex dependencies, relationships, transformations Declarative calculations, not scripted 1 2 3 1 2 3 2.Rapid analysis of cross-functional impact “Change anywhere, analyze everywhere” Evaluate financial desirability & operational feasibility Interactive response times 3.Robust analytic transaction framework Scenario management & change isolation Reconciliation of concurrent plan changes System of record for plan changes: audit trails

9. Copyright © 2008, Oracle and / or its affiliates. All rights reserved.9 Solution Architecture Purpose-Built for Integrated Planning ERP / Functional Planning Applications Change-Based Data Modeling Engine Impact AnalyzerScenario ManagerFederated Modeling Application and Process Layer Planning, Analysis and Reporting Data Feeds Plan Updates

10. Copyright © 2008, Oracle and / or its affiliates. All rights reserved.10 Analyze Financial and Operational Impact Plan Revisions Supported by Fact-based Decisions Model plan revisions in familiar Excel environment Review financial metrics and operational constraints Assess impact of plan revisions interactively

11. Copyright © 2008, Oracle and / or its affiliates. All rights reserved.11 Manage Business Scenarios and Collaboration Create, submit and approve business scenario’s Include planning participants across business functions Manage planning workflow

12. Copyright © 2008, Oracle and / or its affiliates. All rights reserved.12 Planning and Managing Financial Performance Income Statement Balance Sheet Cash Flow Statement Revenue Product Mix & Prices Growth & Region Mix Cost of Sales Direct Costs Shared Costs Payroll Expenses Headcount Salary Increases Capital Expenses New Projects Purchase Prices Accounts Receivable A/R Aging Collection Rates Business Entities Business Data Relationships Rules Chart of Accounts, GL Entity, Products, Customers, Regions, Projects, Employees, Assets Financial data, Operational Data, Market Data Entity Hierarchies, Product Bills of Material, Distribution Networks Budget Allocation Rules, Aggregation Rules, Variance Thresholds Constraints Capital Budget, Operating Budget, Capacity, Materials, Resources Key Drivers (Examples) Planning Solution Needs Financial Measures IOP Focus Workforce Plg.

13. Copyright © 2008, Oracle and / or its affiliates. All rights reserved.13 Oracle IOP Business Scenario: Integrated Margin Planning Revenue Cost of Goods Sold Gross Margin Hyperion Planning – Raw Material Costs – Labor Costs – Transportation Costs – Capacity Utilization – Product Mix – Granular Pricing Oracle IOP High-level assumptions Standard costs No operational detail Annual adjustments Detailed cost drivers Bill-of-Materials modeling Time-phased calculations Multiple adjustments per month

14. Copyright © 2008, Oracle and / or its affiliates. All rights reserved.14 Oracle IOP Business Scenario: Revenue Alignment Revenue Cost of Goods Sold Gross Margin Hyperion Planning – Bottom-up product hierarchy models – Regional, channel & customer mix – Rough-cut capacity – Granular Pricing Oracle IOP High-level assumptions Lack of product & customer level detail Quarterly adjustments Driver-based revenue impact analysis Align dollar targets with unit plans Identify and reconcile operational constraints Multiple adjustments per month

15. IOP Solution Demo

16. Copyright © 2008, Oracle and / or its affiliates. All rights reserved.16 Demo Overview Business Context: Electronics Manufacturer Missed our Q1 Revenue Target In Hyperion Planning adjusted Financial Plan upwards for 2HFY Looking to close revenue shortfall by pulling in a New Plasma TV Product Launch Sent the new plan to IOP for detailed analysis Review both operational constraints and financial metrics

17. IOP Customers

18. Copyright © 2008, Oracle and / or its affiliates. All rights reserved.18 High Tech and Electronics Discrete and Industrial Manufacturing Consumer Goods Proven Value in Key Industries

19. Copyright © 2008, Oracle and / or its affiliates. All rights reserved.19 Move From Function-Centric Planning to Aligned Performance Across the Business Before  Manual processes using hundreds of spreadsheets  Disconnected decision making within functional silos  Lack of alignment across sales, marketing and operations plans  Long planning cycle times due to batch oriented planning modules Global manufacturer and marketer of high-quality, brand- name products for consumers throughout the world After  Integrated planning models across sales, marketing and operations  Operational decisions based on financial impact assessment  Improved alignment across demand plan, sales promotion plan, capacity plan and financial plan  Reduced planning cycle times in line with business needs

20. Copyright © 2008, Oracle and / or its affiliates. All rights reserved.20 Align Product Allocation Decisions with Business Priorities Before  Hundreds of Excel templates with little consistency across planners  Lack of visibility and coordination in demand-supply alignment  Lack of business and financial impact analysis  Limited scalability to handle growing business volume & complexity Seagate is the worldwide leader in the design, manufacture and marketing of hard disk drives After  Consistent data and planning models shared across all planners  Proactive management of supply hot- spots in response to demand variability  Responsive decisions based on operational and financial impact analysis  40% gain in planner productivity leading to staffing efficiencies

21. Copyright © 2008, Oracle and / or its affiliates. All rights reserved.21 Key Takeaways Align financial goals with operational plans Enable responsive business decisions Attain financial targets with greater confidence Unlock the value of existing planning systems

22. Copyright © 2008, Oracle and / or its affiliates. All rights reserved.22