1. E-Business Suite Manufacturing Applications Strategy, Update, and Roadmap Ramchand Raman Vice President, Applications Development

2. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 2 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.

3. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 3 Agenda  Manufacturing Business - Current Challenges  Next Generation Manufacturing - Key Drivers  Highlights of EBS Manufacturing - Release 12 and 12.1  Future Directions  Q&A

4. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 4 Today’s Manufacturing Environment Increased Business Pressures with Globalization Rapid Product Innovation & Supply Constantly innovate and rapidly deliver highly customized, quality products at competitive prices for a broader customer base Global Customer Base Management Manage varied expectations and service demanding customers spread across the globe Regulatory Compliance Management Comply to standards like S-OX, 21 CFR Part 11, RoHS, WEEE, ISO 9000 and other local, country specific regulatory norms Complex Supply Chain Network Management Manage complex, dynamic global supply chain networks of partners and suppliers to operate in harmony Global Demand and Supply Coordination Manage demand variability and coordinate supplies internally and externally from different geographical locations Supply Chain Cost Containment Reduce supply chain costs to stay competitive in an ever expanding global marketplace

5. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 5 Typical Information Technology Landscape Operational Challenges with Disparate Systems Multiple Plants w/ Different Systems Factory Automation Homegrown / 3 rd Party MES Quality / SPC Maintenance / Service Multiple Contract Manufacturers Corporate Customer Relationship Mgmt Supply Chain Management Business Intelligence Enterprise Resource Planning Disconnected

6. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 6 The Need for Change From Fragmented Shop Floor to Integrated Value Chain 11223344 Limited Collaboration Selective Improvements Standardization, Foundational Multi-Enterprise Orchestration Performance Manual Processes AutomatedManagement LeanExecution Demand Driven Lean Manufacturing

7. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 7 Roadmap: Continued Releases & Innovation Ongoing Point Releases Easy to Uptake 12.012.1 12.1.212.1.3 Planned Released Major Release Minor Release 11.5.10 12.2 12.2.2 12.2.3 12.2.x … EBS for Endeca … Nov 2004 Jan 2007 May 2009 Dec 2009 Aug 2010 Nov 2012

8. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 8 Oracle E-Business Suite Support Timelines Updated Support Policies for 11.5.10 and 12.1 11.5.10 12.0 12.1 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Premier Sustaining Premier Sustaining Nov ’13 Jan ‘12 Jan ‘15 May ‘14 May ‘17 GA Nov ‘10 Extended 12.2 GA will start new support timeline Jan ‘07 May ‘09 Extended Extended Premier Waive all uplift fees for 12.1 Extended Support Today Dec ‘14ExceptionException Offer Exception to Sustaining Support for first 13 months Risk Mitigation for Customer if Upgrade Runs Long Extend 12.1 Extended Support thru Dec 2018 Dec ‘18 Longer Support Timeline on Upgraded R12.1 System For More Info on Announcement, see MOS Doc ID 1495337.1Doc ID 1495337.1

9. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 9 E-Business Suite Manufacturing

10. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 10 EBS Manufacturing at a Glance Integrated Planning, Manufacturing, and Supply Chain Execution Integrated Intelligence Cost Analysis Productivity Planning Planned Orders Schedule Changes Component Substitutes Resources Substitutes Product Lifecycle Mgmt Warehousing / Transportation Service Asset Maintenance Demand Schedules Configured Order Quality Specifications Lot / Serial Genealogy Tracking Quality Management Repetitive, Project Flow/Lean Discrete, Process Lot-Based Mixed Mode Mfg Execution Production Status Material Availability Mfg Capacity Schedules / Changes Ship Notices Invoices / Payments Enterprise Shop Floor Contract Mfgrs Real-Time WIP Visibility Contract Mfgrs Model Shop Floor Suppliers MES APIs, Direct Access Analyze Adjust Sample ETO ATO / CTO MTS Integrate Planning and Execution Collaboration with Suppliers, Contractors Integrate with Distribution, Transportation Integrated Intelligence Mixed Mode Manufacturing For Flexibility Customer

11. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 11 Enabling the Information Driven Value Chain Delivering on Core Principles – Fulfillment Excellence Demand Driven Planning, Scheduling and Execution Top to bottom Supply Chain and Financial Integration Align Value Chain Enterprise Quality and CAPA Management Genealogy, Electronic Records and Signatures Real-time Shop Floor Controls and Analytics DriveCompliance Integrated Shop Floor and Logistics Execution Mixed Mode Manufacturing Operations Optimized In House and Contract Manufacturing ImproveProductivity E-Business Suite Manufacturing

12. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 12 E-Business Suite Manufacturing Key Highlights Release 12/12.1

13. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 13 EBS Manufacturing Release 12 and 12.1 – Key Highlights Operator and Supervisor functions Exceptions Management Electronic Records and Signatures Operator Skill Validation Serialized Mfg Enhancements Time Entry Enhancements Extensibility Discrete Manufacturing/MES Outsourced Manufacturing Chargeable/Shikyu Subcontracting Buy/Sell Subcontracting Non-Chargeable Subcontracting Manufacturing Quality MES Integration Shop floor device integration Performance/Usability Improvements Electronic Records and Signatures Enhanced Receiving Inspection & CAPA Discrete Manufacturing Process Manufacturing Inventory Management Cost Management Endeca Extensions In-Memory Cost Management (phase 1) Engineered Systems Landed Cost Management Least Cost Formulation Ingredient Substitutions Electronic Batch Records Touch Screen User Interfaces Dispensing/Pre-Mix Process Manufacturing/MES Common Item Master Dual Unit of Measure Control Material Status and Advanced Lot Control Enhanced Inventory Allocation Rules Deferred ERES & Global Lot Attributes Converged Inventory Manufacturing Analytics MES, Quality, Costing, Planning & Inventory UI and Open Interface Enhancements Production Scheduling Support Lot Based Manufacturing (OSFM)

14. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 14 Manufacturing Execution System (MES)

15. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 15 Optimize Manufacturing Operations Manufacturing Execution Systems for Discrete and Process Industries Converged Inventory System Automation & Control Deliver Real-Time Shop Floor Visibility to Multiple Layers of Management Reduced TCO / Complexity via Integrated Mfg Mgmt & Production Execution MES ERP Corp Mgmt Shop Floor Control Production Mgmt Process Engineer Manage recipes & advanced process instructions Production Supervisor Create & manage batch status Log non-conformances Dispensing / Production Operator Touch Screen User Interface Pre-weigh designated ingredients Process batch operations Operator Certification Operator Work from dispatch list Record transactions, quality info, work completion, and time View work instructions and component info Report production exceptions Skills certification Supervisor Review & resolve exceptions Monitor shop floor progress MES for Discrete Mfg MES for Process Mfg

16. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 16 MES Usability Improvements Converged Inventory Discrete MES –Reduced Screens, Mouse Clicks –Express Transact Components –Assembly Serial# centric Work Order Detail Page –New Extension Hooks – Mass Move Process MES –More capabilities for Touch Screen UI –Additional Transactions Support

17. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 17 Common Inventory for Discrete and Process Mfg Order Management ProcurementASCP OPM Recipe / Quality OPM Costing OPM Production BOM / Quality CostingWIP OPM Inventory Discrete Inventory Order Management ProcurementASCP OPM Recipe / Quality OPM Costing OPM Production Oracle Inventory BOM / Quality CostingWIP Single Inventory Model Process features include: –Dual Units of Measure –Grade –Expiration/ Maturation Dates –Material Status –Enhanced inventory allocation rules –Indivisible lots –Support for “child lots” (replace “sublots” in OPM )

18. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 18 Outsourced Manufacturing

19. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 19 EBS Outsourced Manufacturing  What is it?  A new product in E-Business Suite 12.1.3 that provides original equipment manufacturers (OEM) the ability to model key set of industry standard outsourced manufacturing business processes to track and manage all aspects of the outsourcing business with one or many contract manufacturers.  Who is it for?  The solution is for original equipment manufacturers in all discrete industries such as Industrial Manufacturing, Hi-tech, Medical Devices, Automotive, Aerospace and Defense etc who have outsourced part or all of their manufacturing activities to contract manufacturers and need the visibility into those activities.  What are the key capabilities?  Endeca visualization layer provides accurate and real-time visibility into the overall health of the outsourced manufacturing business related to inventory balances, financial positions, and production bottlenecks such as quality issues, delays, and material shortages that could help mitigate risks to key customer commitments.

20. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 20 Subcontract Order Status Main Point Inventory Balances Quality Financial Positions 1 2 4 3 EBS Outsourced Manufacturing Four categories of visibility into outsourcing business

21. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 21 Key Performance Indicators Visibility into Outsourced Manufacturing Typical Business Questions… How many subcontracting orders are delayed and which customers are impacted ? What’s the value of our material at manufacturing partner locations ? What’s the value of goods in transit to manufacturing partner locations? What’s the value of defective finished goods received from manufacturing partners ? What’s the value of uninvoiced subcontracting orders ?

22. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 22 Outsourced Manufacturing Business Practices OEM MP B C A Process Inhouse Process Outside Process Inhouse Manufacture Assembly Ship Partial Product Receive Finished Product 10 20 30 20 OEM RMS B C MP Buy Components Virtual Sale of Components B C Virtual Purchase of Assembly A B C A Drop Ship Components OEM RMS B C MP Buy Components Ship Components B C Receive Assembly A B C A Drop Ship Components * Applicable only for Japan, Korea, Taiwan OEM RMS B C MP Buy Components Sell Components (with Markup) B C Buy Assembly A B C A Drop Ship Components

23. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 23 Endeca based Visualization

24. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 24  View status of subcontract orders (delayed, on-time) and component allocations across manufacturing partners Subcontract Order Status

25. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 25  View quantity and value of components in-transit or at manufacturing partner locations Inventory Balances

26. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 26  View reasons for poor quality of outsourced products and their value across manufacturing partners. Quality

27. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 27  View financial positions of subcontract and replenishment orders for a manufacturing partner Financial Positions

28. Copyright © 2012, Oracle and/or its affiliates. All rights reserved. 28 E-Business Suite Outsourced Manufacturing Business Benefits  Gain full visibility into the overall health of outsourced manufacturing  Quickly view and analyze financial transactions related to subcontract orders  Track quality issues related to supplied components and finished products  Monitor sales and procurement activities to meet on-time customer delivery  Collaborate effectively with approved suppliers and contract manufacturers  Analyze and negotiate service level agreements and pricing to optimize costs  Mitigate risks related to inventory bottlenecks across manufacturing partners

29. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 29 Endeca Information Discovery

30. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 30 Oracle Endeca Fully Integrated Within EBS Unstructured Data Structured and Semi-Structured Data FilesSocial E-Business Suite Database E-Business Suite Applications Extensions

31. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 31 E-Business Suite Extensions for Endeca Enterprise Asset Mgmt Field Service Projects Supply Chain Management Asset Performance Work Orders Materials Installed Base Management Spares Planning Incidents Depot Repair Projects Management Channel Revenue Management Order Management Claims Order Returns Procurement HCM iProcurementCandidate Job Search Learning Management Order Delays Discrete Manufacturing Inventory Management Process Manufacturing Warehouse Management Cost Management Available Now!

32. Copyright © 2012, Oracle and/or its affiliates. All rights reserved. 32 Demo Order Management Integration with Manufacturing and Inventory Management Demo

33. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 33 Youtube Channel Subscribe Now http://www.youtube.com/OracleEBSdemos

34. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 34 Manufacturing Analytics

35. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 35 Manufacturing Analytics Manufacturing Quality Converged Inventory Pre-packaged KPIs and Dashboards Sample Reports Plan to Produce Production Attainment Past Due Work Orders Planned Production Production Costing Cost Metrics KPI Manufacturing Cost Summary Manufacturing Cost Variance Summary Cost Trend Manufacturing Quality Quality Summary Quality Results Non Conformance Process Manufacturing Formulation Yields Adjusted Formulation Variance Scaled Formulation Variance Plan to Produce Manufacturing Execution Process Manufacturing Manufacturing Quality Production Costing Inventory Manufacturing Execution Work Order Detail Open Work Orders WIP Operation Analysis Scrap Summary Rework and First Pass Yield Inventory Inventory Expirations Excess and Obsolete Inventory Inventory Aging

36. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 36 Mobility

37. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 37 EBS Mobile Applications Strategy iPad access to EBS Self-Service: OA Framework being certified on Safari Application Examples: Expenses HR Self-Service Projects time entry iProcurement Order Information Portal Specialty Mobile Applications for EBS: ADF Mobile-Based Native Mobile UIs Mobile device services Disconnected access Application Examples: Mobile Field Service Mobile Maintenance Mobile Shop Floor Manager Mobile Warehouse Manager Endeca for EBS enhances user experience: Endeca Applications: Order Management Asset Maintenance Projects Discrete Manufacturing Field Service Channel Management Oracle Business Intelligence Mobile: Business Intelligence content on iPhone & iPad

38. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 38 In-Memory Cost Management

39. 39 | © 2012 Oracle Corporation Confidential and Proprietary – Oracle Internal Use Only Cost Impact Simulator Impact on product costs from BOM, Routing, Resource, Overheads Cost Comparison Tools Detailed cost elemental comparison and derivations across entities Gross Profit Analyzer What-If simulation capability for cost impact on the product gross margin Inventory Period Health Check Real-time monitoring and mitigation for Period Close bottlenecks View and search Receiving/Inventory/WIP transactions and accounting distributions Solution Summary In-Memory Cost Management Built and optimized for Oracle Engineered Systems

40. 40 | © 2012 Oracle Corporation Confidential and Proprietary – Oracle Internal Use Only Cost Planning & Optimization Ability to quickly set up and derive resource and overhead rates Cost Forecasting Predict item costs and inventory valuation using statistical techniques and external factors Cost Variance Analyzer and Reconciliation Cost variance analysis from Manufacturing, Procurement, Landed Costs Streamlined reconciliation for accrual and inventory value across transactional distributions, sub ledger accounting and GL Solution Summary In-Memory Cost Management Built and optimized for Oracle Engineered Systems

41. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 41 Roadmap

42. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 42 EBS Manufacturing Roadmap Manufacturing Quality Converged Inventory Electronic Kanban Support for contingent workers Oracle Time and Labor integration Usability Improvements Serialized Manufacturing -- Automatic dekit -- Express transact improvements Manufacturing Execution System Outsourced Manufacturing ATO/CTO support iSupplier Portal Integration Serial and Lot Genealogy Support for Process Manufacturing Manufacturing Quality Discrete Manufacturing -- Operator centric dashboards Process Manufacturing -- Operator centric dashboards Cost Management -- Variance Analyzer -- Reconciliation Manufacturing Defect Analysis Project Manufacturing Lot Based Manufacturing (OSFM) Master Data Management -- Product, Supplier, Site Endeca Information Discovery Engineered Systems In-Memory Cost Management (phase 2) Process Execution/Financials Open interfaces for batches and transactions Improved OPM Financials -- Performance Improvements -- Functional Enhancements

43. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 43

44. Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 44