Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 1

Oracle Projects Supply Chain Paulo Back Vice President – Applications Development

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 3 Program Agenda  Overview  Best in Class Projects  Best in Class Procurement  Projects Supply Chain  Planning Your Roadmap

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 4 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.

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 5 Roadmap: Continued Releases & Innovation Ongoing Point Releases Easy to Uptake Planned Released Major Release Minor Release Nov Jan May 2009 Dec 2009 Aug 2010 RUP1…RUP2…RUP3…

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 6 Oracle Enterprise Project Portfolio Management

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 7 Oracle E-Business Suite EPPM Evolution Business Value PROJECT MANAGEMENT (PM) RESULTS Plan and Schedule Complex Projects DEPT./GROUP RESOURCES Planners Project Managers Project Controls RESULTS Programs Resource Management Risk Management Change Management Plan and Schedule Complex Projects DIVISION/LOB RESOURCES Resource Managers Program Managers Planners Project Managers Project Controls PROJECT PORTFOLIO MANAGEMENT (PPM) PROJECT PORTFOLIO MANAGEMENT (PPM) RESULTS Strategic Alignment Project Financial Management Project Analytics Performance, Governance, and Control Single Business System Procurement Resource Management Risk Management Change Management SUPPLY CHAIN WIDE RESOURCES COO/CIO/CPO/PMO Corporate Finance Business Unit Executives Suppliers Ecosytem Buyers Planners Project Managers Resource Managers Program Managers ENTERPRISE PROJECT PORTFOLIO MANAGEMENT (EPPM) ENTERPRISE PROJECT PORTFOLIO MANAGEMENT (EPPM) Strategy

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 8 Enterprise Project Performance Management Project Management and Operations Business Operations Application Foundation Capacity Planning Earned Value Management Earned Value Management Planning and Scheduling Costing and Billing Project Procurement Human Resources Time and Labor Supply Chain End-to-End Industry Processes End-to-End Industry Processes Master Data Management Master Data Management Comprehensive Security Comprehensive Security Enterprise Analytics Enterprise Analytics Project Portfolio Management Project Financial Management Project Resource Management Contract Management Change Management Budgeting & Forecasting Budgeting & Forecasting Financials Project Analytics Oracle E-Business Suite Projects

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide % of CEOs identify the ability to manage projects as critical to the future growth of the business… just 11% are very confident of their ability to manage business critical projects Source: IPMA Study Sept A Widening Chasm

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

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Procurement Business Process Process Efficiency Cost Savings 1. Spend Analysis 2. Supplier Assessment 3. Supplier Identification 4. Sourcing 7. Order Fulfillment (Services Procurement) 6. Procurement 5. Contract Lifecycle Management 8. Electronic Invoice Presentment and Payment Supplier Collaboration Supplier Management Value Driven Procurement: Supporting Complete Cycle

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Gulf Between Claimed Savings & Financial Impact  Less than 10% of Finance executives believe in procurement savings  Reported savings are discounted by >30% Source: Hackett Closing the Gap Between Claimed Savings on Indirect Spending Perception Gap “Savings claimed by procurement are falling to the bottom line and can be proved” Procurement vs. Finance

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide By Itself, Marginal Cost Reduction Has Limits LOBs resist procurement’s involvement because Lack domain expertise outside of negotiating deals Fears that procurement will focus on cost to the exclusion of other critical success factors Limited alignment with MBOs Suppliers resent procurement as an adversarial agent of margin transfer  Total Revenue  Cost of Revenue Gross Profit  R&D  SG&A  Non Recurring  Total Operating Expense Operating Income  Total Other Income/Expense Net  Earnings Before Interest & Taxes  Interest Expense  Income Before Tax  Income Tax Expense Net Income From Operations

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Traditional approach: Is There a Better Way? Disconnected plans, long planning cycles, high latency in decision making Tier 2Tier 1 Paper Delivery Acquisition Plan Mfg plans Project Plan Actuals SUPPLIERS Budget & Forecast PROJECT MGR BUYER CUSTOMERS ? Marketing Forecast Sales Forecast  Response 1: Maintain excess inventory  Response 2: Reserve production capacity  Response 3: Expedite everything! Supply Chains built on INVENTORY Unpredictable Project Delivery

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide % Pharmaceuticals 56% 56% Semiconductor 56% 39% Utilities 39% 48% Other Industries 48% 22% Financial Services 22% 55% Indust. Mfging. 55% 44% Metals & Mining 44% 43% Petroleum 43% 47% Aerospace & Defense 47% 53% Chemical 53% 46% DOE/NNE Contractors 46% 53% Eng. & Const. 53% Source: CAPS Research Procurement is a fundamental part of the Project Manage Your Supply Chain Procurement Spend as % of Revenue

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Spend -5% Profit +50% Procurement’s Disproportionate Margin Impact Small Changes. Big Difference. 5% Reduction in Spend Increases Profit by 50% In order to obtain an equivalent impact, a firm would have to... Increase Sales by 50% Cut Overhead by 20%

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Real Time Strategy, Planning and Execution Strategic Alignment, Collaborative Planning & Integrated Execution Tier 2Tier 1 Acquisition Plan Forecast & Delivery Project Plan Actuals SUPPLIERS Budget & Forecast PROJECT MGR BUYER CUSTOMERS Project Specification Customer Drivers Portal Supplier commit SOV Operations Forecast Collaboration Benefit 1: Reduced planning cycle time Benefit 2: Faster and better decision making Benefit 3: Closed-loop planning and execution Benefit 4: Enables best-in-class processes Supply Chains built on INFORMATION REDUCED LATENCY, FULL VISIBILITY

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Transforming from Cost to Value Driven Builds on Transaction & Cost Management Transaction Enablement Spend & Cost Management Value Driven Material Management PO Management Overhead Reduction Strategic Sourcing Total Cost Reduction Finance Collaboration New Categories Shared Services Customer Driven Strategy Planning Execution Integrated across and within organization Networked – based on knowledge

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

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide P RODUCTS ASSETS SUPPLY DEMAND Creating Alignment Via Key Value Drivers Extend Reach of Procurement Knowledge

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Oracle Projects Supply Chain Strategic Alignment Collaborative Planning Integrated Execution Align Plan Execute Monitor Analyze Report

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Oracle Projects Supply Chain Strategic Alignment Collaborative Planning Integrated Execution Align Plan Execute Monitor Analyze Report

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Order commodities Risk mitigation via inventory and time buffers Inventory and time buffer sizes Locate inventory buffers Risk mitigation via capacity buffer (subcontractors) Projects Supply Chain Alignment of the Supply Chain Decisions Order long lead time products Make or buy products Selection of subcontractors and suppliers Risk Allocation via Contracts Risk mitigation via capacity ( material, suppliers) Operational Decisions Tactical Decisions Project Planning/ Detailed Design ProcurementExecution Strategic Decisions Define products / technologies Execution Strategy Evaluate SC configuration Risk Management

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Customer CRM Other Sources ERP CRM EPM/BI Legacy… Financial Supplier Enterprise Data Quality Enterprise Analytics Data Governance & Compliance Product Customer Site Oracle Master Data Management Modern, Enterprise-Grade, Multi-Domain

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Poor Visibility Qualification and performance information gathered but invisible Nowhere to store stakeholder intelligence Spend analytics are incomplete and inaccurate Risk and Compliance Failures Code of conduct assurance often a 1-time event Difficult to ensure suppliers are adhering to laws, regulations & standards Paper procedures to track critical documents Fragmented Data System data duplicated, incomplete &/or inaccurate Data held within multiple systems Data archeologist required to federate accurate information Supplier Management is Expensive Haphazard qualification and on-boarding for suppliers Paper-based profile administration Repetition of manual supplier management activities Supplier Management Business Challenges Supplier Master Data Identification On Boarding TransactionAdministration

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Institute Supplier Management Improve Supplier Data, Qualification & Compliance

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Oracle Projects Supply Chain Strategic Alignment Collaborative Planning Integrated Execution Align Plan Execute Monitor Analyze Report

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide S CHEDULE P RODUCT S OURCING & P ROCUREMENT S PECIFICATIONS Project Managers Buyers Subject Matter Experts Suppliers Collaboration: A Better Approach Accelerate Inter-Enterprise Knowledge Transfer

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Plan, Design and Procure Engage all stakeholders in the planning process with integrated information and collaborative tools. Integrated Solution Create a strategic procurement plan based on current and historical information Lower risks by utilizing procurement knowledge and supplier data during sourcing Negotiate better agreements with full visibility to project objectives, budgets and priorities Flow down information from the project contract to procurement contracts Reduce inventory by aligning delivery schedules with project execution Monitor supply-chain performance through embedded analytical tools Financial Planning Workplan Management Sourcing and Procurement

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide  View by Activity, Resource, or Cost Breakdown  Standard cost coding structure across portfolio lead to better:  Estimating  Planning  Tracking  Cross-project reporting  Benchmark productivity measurements Benefits Planning by Cost Breakdown

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide  Project Manager and Buyer have a complete view of the procurement plan and current status  Buyer uses selection criteria to ensure the right supplier is chosen  Project Manager incorporates lead times and negotiated prices into project schedule and financial plans Procurement Plan Align Planning Strategies and Schedules

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Procurement Research & Development Suppliers Operations  Shorter time to market  Faster cycle times  Access to new technologies  Total cost reduction  Compliance to negotiated agreements  Shorter time to market  Faster cycle times  Access to new technologies  Total cost reduction  Compliance to negotiated agreements Improve Strategic Sourcing Outcomes Strategic Sourcing & Contracts

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Procurement for Complex Services 4 Request for Service Author Contract Advance Payment Process Payment Track Progress Source

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Project Driven Supply Chain Planning Reduce Planning Cycle Time  Plan your entire value chain  Reduce the number of plans Make Better Decisions Faster  Automate planning decision making  What if simulation and root cause analysis Execute to Plan  Integrated planning and scheduling  Enforce planning decisions when promising orders Enable Best in Class Processes  Design collaborative planning processes  Plan demand and supply simultaneously and interactively

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Oracle Projects Supply Chain Strategic Alignment Collaborative Planning Integrated Execution Align Plan Execute Monitor Analyze Report

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Project Execution Align project, subcontract and procurement schedules to ensure on-time delivery Integrated Solution Automatically update supply chain demand when task dates change Incorporate supplier lead times into project schedule Predict potential problems ahead of time Proactively monitor resource and material availability Reduce expedited shipments Quickly evaluate the impact of material shortages or price changes Perform what-if analysis to evaluate the impact of project changes Track supplier deliverables and control payments Cost, Revenue, Billing and Project Accounting Change Management Forecasting Sub Contract Management Physical Progress

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Financial Control Aggregate information across applications for a full view of project performance Integrated Solution Adjust project financial plans based on negotiated procurement agreements Monitor performance with interactive dashboards and reports that can be viewed by any dimension Earned value reporting and analysis Actual against plans Utilize on-line drilldowns to perform maintenance and adjustments Manage cash flow through integrated receivables, payables, and payroll Initiate supplier payment holds Search for available discounts Financial Management Asset and Equipment Management Performance Management

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide  Monitor resource usage and availability  Reduce inventories by aligning supply chain planning with the project delivery schedule  Track supplier delivery schedules and performance  Quickly evaluate the impact of material shortages Project Manager Dashboard Reduce Schedule Delays

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide  Project customer and supplier invoices in a single view for analyzing cash flow  View invoice totals and drill into invoice details  Manage supplier invoice holds  Link supplier invoice to customer invoices to create pay-when-paid holds  Update supplier contract deliverables  Generate supplier invoice hold reports Supplier Payment Dashboard Sub-Contractor Management

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide  Miscellaneous deductions for supplier related project charges or damages  Create back-charge deductions for reimburseable incurred expenses  Associate deductions to a change order  Route deduction requests for approvals  Automatically process deductions in Oracle Payables Supplier Deductions Sub-Contractor Management

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Rapidly Respond to and Plan for Project Changes - Record the change - Add new tasks - Control changes by change types - Manage issues & actions - Plan budget impacts - Conduct multi- thread discussions - Include in forecasts - Update budget with impacts - Retain history - Workflow-driven processes - Enable automatic notifications  Plan financial impacts by task, resource and supplier contract (PO)  View budget impacts prior to accepting / approving  Consolidate multiple change requests into a change order  Provide complete audit trail of historical changes Executives Project Managers Team Members Define Change Evaluate Impact Route & Approve Implement Change Management

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide What are Project Controls? Planning, Scheduling and Project Reporting Earned Value Analysis & Management Cost Engineering & Estimating Change Management & Controls Project Controls encompass the people, processes and tools used to plan, manage and mitigate cost and schedule issues and any risk events that may impact a project. Risk & Delay Claims

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

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Oracle E-Business Suite Modern User Experience Mobile Experience with Great Performance

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Endeca for Oracle E-Business Suite Complete Data View Key Metrics Highlights Google Like Search Search Across Organizations Search On Flexfields Advanced Visualization Guided Navigation® Range Filters with histograms Tag Clouds Charts Performance Metrics Metrics Bar Cross Tab

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

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 47

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Project Executive Dashboard Designed for project executives to provide aggregated project performance data at the organizational level, allowing users to see the cumulative impact of their projects in the cost, revenue and profitability of their organizations Public Sector Dashboard Designed for public sector and non-profit organizations where profitability and margin are not tracked. It is a demonstrative example of how existing objects can be leveraged to build a custom dashboard tailored to specific requirements industry requirements. Project Management Dashboard Designed for project managers to provide a complete view of project performance, from a comprehensive high level view of accumulated and trending information for a single or a group of projects, to detail information such as cost, revenue and budget transactions Oracle Project Analytics Rich Solution for Project Based Organizations

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

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide  Increase savings by expanding use of negotiated prices  Reduce maverick spending  Improve the productivity of requesters and buyers Solution iProcurement, Transformed

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide  Real-Time Supplier Communications  Online Negotiation of Contracts with Suppliers  Supplier NDA Process  Sourcing Cost Calculation Solution Roadmap Effective Supplier Management Supplier Network Suppliers Buying Organization Supplier Hub Supplier Lifecycle Management Supplier Data Steward A solution to enable 1000’s of suppliers …

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide  MSWord Integration/Formatting Improvements  AME Approval Management  Repository Contract Enhancements  General Usability Improvements  Embedded Best Practices Solution Roadmap Key Customer-Driven Improvements Customer Satisfaction

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide Integrated Services Procurement Supplier Cost Dashboard Subcontractor Payment Controls Project Manager Reporting Pack Reporting Performance Improvements Enhanced Change Management Prepayment Receipt Application Effective Dates Fund Consumption Contingent Worker support Support for Self Assessed Tax Project and Federal Financial Analytics Self Services Expenditure Inquiry Enhanced UI and Project List page MSP Integration Improvements Integrated Services Procurement Supplier Cost Dashboard Subcontractor Payment Controls Project Manager Reporting Pack Reporting Performance Improvements Enhanced Change Management Prepayment Receipt Application Effective Dates Fund Consumption Contingent Worker support Support for Self Assessed Tax Project and Federal Financial Analytics Self Services Expenditure Inquiry Enhanced UI and Project List page MSP Integration Improvements Enhanced Labor Planning and Costing Project Analytics for Resource Management CMRO Integration Enhancements Standard Invoicing for Adjusted Transactions Improved Performance and Usability for Workplan Management (includes Endeca) Integration to Primavera’s Configurable Framework Intercompany Billing Enhancements Revenue in Foreign Currency Improvements Next Generation Planning and Controls Planning by Cost Breakdown Mobile Applications Enhanced Labor Planning and Costing Project Analytics for Resource Management CMRO Integration Enhancements Standard Invoicing for Adjusted Transactions Improved Performance and Usability for Workplan Management (includes Endeca) Integration to Primavera’s Configurable Framework Intercompany Billing Enhancements Revenue in Foreign Currency Improvements Next Generation Planning and Controls Planning by Cost Breakdown Mobile Applications Continued Improvement in Usability and Performance (includes Endeca) Resource Management Enhancements Project Analytics for GL Reconciliation, Earned Value reporting, Cross Charges Field Service Integration Budgetary Controls in Project Management Project Driven Supply Chain Collaborative Dashboard for Project- Driven Supply Chain Planning Projects / Procurement Integration Optimized Customer Billing Federalization Schedule of Value/Construction Government Contracting Reimbursable Agreements Mobile Applications Continued Improvement in Usability and Performance (includes Endeca) Resource Management Enhancements Project Analytics for GL Reconciliation, Earned Value reporting, Cross Charges Field Service Integration Budgetary Controls in Project Management Project Driven Supply Chain Collaborative Dashboard for Project- Driven Supply Chain Planning Projects / Procurement Integration Optimized Customer Billing Federalization Schedule of Value/Construction Government Contracting Reimbursable Agreements Mobile Applications Release August 2010 What’s Next 0-12 month planning cycle What’s Next 0-12 month planning cycle Future Directions Post 12 month planning cycle EBS Projects Roadmap

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 54

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

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 56