1. MRD & SCM JRAP Meeting Greater China Keith Ip GC SCM Product Solutions

2. Agenda Summary of Product Solution Challenges for Discussions Challenges for SCM and MRD in GC Market Our Solutions Strategic Enhancement Innovation for SCM Product Solutions Catch Up Industry Based Solution

3. CHALLENGES FOR GC SCM & MRD

4. Now and Future 17% CAGR 20% CAGR 15% CAGR 20% CAGR Assuming Oracle expects 30+% growth…… Gen more demand, win more over SAP, in areas where they suck

5. What SAP did when entering China? Enter China in 1991, SAP China established in 1995, Key wins of Lenovo and Haier in 1998 Lighthouse Accounts – Invest in working with leading companies by industries (Investing in Sinopec for 3-4 years without any rev before signing a 10M deal) Heavily invest in partners – Granting 30% margin to partners Create Strong Eco-system in key industries – Oil & Gas, Chemical, Tobacco, Traditional Mfg, Metal, Auto, etc… Strong Partner Eco-system Build up the Brand of Industry Solutions

6. SAP Today A large pool of install base of upsell add-on license Enough funding for other smaller companies as well as dropping price when competing against us Leverage their brand to sell more ERP With our brand legacy, it takes time for learning curve in order to penetrate into SAP install base SAP is building their specialization teams (PLM, SRM, EPM) SAP is pushing their +1  Minimize Oracle’s Differntiators Time Window is closing

7. ERP Landscape in China – Winning ERP with EDGE/Industry Solutions Time Adoption MNC Hi Tech Telco Large Banks Emerging Industries Government SASAC Mid Market ERP + EDGE / Industry Solutions ERP Replacement EDGE / Industry Solutions SAP IB

8. So What’s Next for Oracle? ERP is commodatized but still a foundation for companies to adopt – win ERP with EDGE and strategy Holistic x-LOB Investment Plan for Strategic Development in Multi-Dimensions Industries Segment Cities Accounts Product Solutions Growth Think out of the box True collaboration

9. Initiatives Key China Programs Industries – Shipbuilding, Power Grid, Auto Logistics, Prof Services Accounts – MOR, Foxconn, Air China, Acer Government – MOP, MOF Product Solutions – Demantra, OTM, Siebel, Hyperion, GRC, Agile PLM, MDM Segment – SASAC Cities – Growth Cities SC Investment to build/support commercial & partner ecosystem Deepen industry alignment & broaden solution scope Leveraging x-Region Industry/Product Solutions Knowledge – Shipbuilding in KR, Gov in ANZ, Banking in HK, MDM in KR and AU Growth City

10. Product Solutions Initiatives Key Product Solutions Initiatives EDGE Applications by industries Key x-Product Solutions Initiatives Service Part Management (APS + Siebel/EBS Service) Enterprise PLM (Agile + PIM) Total Customer Centric Logistics Management (Quote-to-Cash – Siebel OM, OTM, Oracle FIN) Integrated Financial Planning (Hyperion Planning + Demantra S&OP)

11. Challenges of Oracle Products Integration among Products Time to Market of various AIA More concrete content and material Apps Integration with other GBU or Tech products like Retek, Stellent, AutoVue, SPL Time-To-Market for Local Language Support Chinese for Demantra and PS More Clear Roadmap on SCM Analytics and Integrations with Apps More Clear Roadmap on How to Leverage Interlace Pricing Agile list price is higher than pre-acquisition OTM FUM is high enough to set the barrier for some customers. For example, some ocean line companies may just want Supply Chain Visibility but the FUM will prevent from this type of customers. It also hurts when customer looks at 5- year investment plan especially when FUM grows rapidly.

12. Strategic Enhancements Innovation for SCM Product Solutions & Catch up

13. Innovations Direct Material Sourcing with SRM Spend Analysis and Supplier Score Card Start from Concept in PLM to Supplier Performance Evaluation before inviting them for the tendering in Agile NPI in PLM with Demantra Simulation for the New Product’s Demand based on Attributes from History Integrated Design & Manufacturing via Project for Process Routing Design Support with Mfg Cost Estimation in PLM (like Costimator)

14. Catch Up User Friendliness of EBS (ajax?!, Web2.0 In R12x) Attributes Based Planning in ASCP Street Level Routing & Scheduling Business Flow Modeler for OTM (Viewlocity) SRM and Spend Management: Spend Planning Integrated Procurement Transaction (Supplier Score Card linked with Survey, Spend Analysis & Supplier Performance linked with Tendering Package Preparation) Transportation Capacity Planning in OTM WMS for 3PL (Acquisition?) Bonded Warehouse

15. Industry Based Solutions (Need more feedback from GM) EMS Solutions in Various Domains APS for Foxconn whom we can learn from PLM for Foxconn Rail Solutions