1. Microsoft EMEA Retail Partners Opportunity Name Title

2. Agenda Industry Dynamics Smarter Retailing strategy Microsoft strategy execution

3. Retail Industry Top-of-Mind Today Business Environment Improving supply chain efficiencies Employee recruitment and retention Industry consolidation Global expansion Achieving sales and market growth Developing a multi-channel strategy Maximizing inventory productivity Assortment planning (product mix) Shrinkage and loss prevention Improving customer service It Environment Retail and Hospitality IT spends 2% of sales versus industry average of 8% Home grown applications are more common than packaged solutions Legacy systems hinder adoption of new technology Aging store systems with proprietary technologies Centralized IT with distributed operations and limited store bandwidth Need highly integrated environments for real time responsiveness Fast ROI and strong TCO critical to justify investment Speed of Change is Imperative… …but the IT Infrastructure is a Business Impediment

4. Location-Based Services The Wireless Store RFID and Sensing Infrastructure Web Services Biometrics “Disruptive Technologies” Will Fundamentally Change The Way Retail Stores Operate Wireless creates asset and labor agility inside of the store. It will enable more efficient store layout and new models of checkout and in-store communication Major Disruptive Technologies Emerging Innovative Solutions RFID will dramatically improve store efficiency in product receiving, inventory placement, out of stock management, shrink management, and labor optimization Web Services will enable unprecedented application integration within the store and fundamental breakthroughs in information sharing among trading partners LBS unlocks the ability to interact with consumers based on their physical location context as well as provide management with location-specific analytics on product sell-through performance Increased security levels for payment transactions at the Point of Sale

5. The IT Challenge Today’s IT Desired IT

6. Store ePOS ePOS Self Checkout Self Checkout Unattended Checkout Unattended Checkout Electronic Signage Electronic Signage Digital Assistants Digital Assistants Smart Shelves Smart Shelves Cross-Channel integration Cross-Channel integration RFID RFID New Innovations Will Occur At The Edge Of The Retail Enterprise… Core Operations ERP ERP Merchandising Systems Merchandising Systems Inventory Management Inventory Management Promotions Management Promotions Management Traditional Replenishment Systems Traditional Replenishment Systems Human Resource Systems Human Resource Systems Labor Management Labor Management Enterprise Data Warehousing Enterprise Data Warehousing Consumers Multi-Channel Shopping (shop online/buy offline) Multi-Channel Shopping (shop online/buy offline) Assisted Shopping Assisted Shopping Personal Digital Assistants Personal Digital Assistants Mobile/Wireless- Enabled Mobile/Wireless- Enabled Merchandise Supply Chain Closed Loop Systems for Synchronizing Supply and Demand Closed Loop Systems for Synchronizing Supply and Demand Information Transparency Across Trading Partners Information Transparency Across Trading Partners RFID RFID 6

7. Success At The Edge Will Be Driven By Smarter Retailers The Perfect Experience The Perfect Experience Give them what they want, when they want it Give them what they want, when they want it In-Store Information In-Store Information SmarterShopping Sharper Salespeople Sharper Salespeople Customers as Individuals Customers as Individuals Real-Time Retailing Real-Time Retailing Multiple Checkout Options Multiple Checkout Options SmarterSelling Enterprise Agility Enterprise Agility Execution Excellence Execution Excellence Capital Efficiency Capital Efficiency Stores without Wires Stores without Wires SmarterOperations 7

8. Microsoft Smarter Retailing Initiative 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. ConsumersEnterpriseStore Microsoft’s core differentiator is in allowing retailers to integrate and collaborate with consumers through their mobile technology solutions. Microsoft will continually enhance this differentiation by injecting disruptive technologies into the platform that further enhances the consumer/retailer relationship. Microsoft is the only company that provides consumer-centric, store- centric, and enterprise-centric retail solutions using a common integrated platform.

10. SRI Benefits to the Retailer Consumer loyalty Revenue uplift Store manager productivity Employee productivity Employee satisfaction Inventory turnover, out-of-stock and gross margin improvement Store IT capital and support cost takeout

11. Microsoft strategy So…. How do we execute this

12. LOB Focus Store Automation Core Retail BISCM Deeper Relationships with Partners Microsoft In Retail And Hospitality Our Top 5 Priorities #3 Solutions Framework Job #1 CustomerSatisfaction! Job #2 PartnerSatisfaction #4 Retail Hardened Windows XP Embedded BizTalk Server SQL Server #5 Driving Standards OPOS ARTS – IXRetail UCCnetRFID Global Focus & Dedicated Team Predictability Licensing Support

13. Product To Solution Paradigm shift in strategy Product CompanySolutions Company

14. EMEA Customer Advisory Board Members

15. Benefits for Retailers Focused Microsoft resources Coordinated focus on industry leaders and industry standards bodies Sales, Technical, Solutions, Services, Support Executives Industry expertise Deep understanding of customer’s business Focus on integrated business solutions (Partner Solution Offerings, Microsoft Solution Offerings) Direct link into Redmond Customer feedback is a major focus (e.g. XP Embedded) Customer and Partner Advisory Council model More relevant products/solutions

16. Executing On The Smarter Retailing Initiative Integrated Innovation Retail Enterprise Consumers Corporate Stores System Integrators ISV’s and OEM’s

17. Retail Line Of Business Areas Store Systems Store Systems Inventory control Kiosk Labor scheduling Loss Prevention Pharmacy Point of Sale, Fuel, Self-checkout Shelf tags Store signage Wireless Marketing Call Center – VRU Call Center – VRU Coupon handling Coupon handling CRM solutions CRM solutions Customer Loyalty Customer Loyalty EAI EAI Multi-Channel Retailing Multi-Channel Retailing Sales data warehouse Sales data warehouse E-Commerce B2C B2C Content Management Content Management Enterprise portal Enterprise portal E-Learning E-Learning Store Portal Store Portal Merchandising Allocation and Forecasting Allocation and Forecasting B2B (Supply Chain Collaboration) B2B (Supply Chain Collaboration) EDI EDI Merchandise management Merchandise management Pricing optimization Pricing optimization Replenishment Replenishment Retail Exchanges Retail Exchanges Space and Floor Planning Space and Floor Planning Business services Business Scorecards Business Scorecards Finance Finance Human resources Human resources Legal Legal Recruiting Recruiting Sarbanes Oxley Sarbanes Oxley Six Sigma Six Sigma Central IT Application Development, e-mail, Enterprise Application Integration, Enterprise Project Management, IT Infrastructure, Office Productivity, Data Warehouse, Telephony, Unix-to-Windows Migration Logistics Distribution Distribution Fleet Management Fleet Management RFID RFID Traffic Traffic Warehouse Management Warehouse Management

18. Achieving Excellence in Execution Partner Management Alignment of Account/Territory and Partner Business Plans Demand generation & Prospecting Partner Engagement Pipeline Management GTM & Industry Solution Planning Five Major Activities One Team Three Processes

19. Retail Big Bets for FY05 Smarter Selling POS Connected POS devices Smarter Shopping MobilityKiosks Store as a Media Smarter Operations Supply chain ( JDA/Manhattan/Eqos) BI/Dash-boardsGDS/RFID Design wins

20. How we deliver the Big Bets Evangelize SRI across the Industry SRI EMEA EBC’s SRI pilots and References Broad reach marketing Clear SI propositions Partner Led Selling with ISV’s.

21. © 2004 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.