CAS Supplier Summit Presentation 2009

Agenda What is CAS? CAS Process Overview Benefits of CAS Plan Service Contract Cycle Benefits of CAS Plan Training Plan Data Conversion Plan Transition Plan Implementation Plan CAS Support Comments & Questions Supplier Breakout Session

What is CAS? CAS (Contract Administration System) is the new global online system for contract requests and administration of contracts Users can track the status of contract requests, contract budget, service orders, service receipts, and service invoices Suppliers will be paid correctly and timely (if instructions are followed)

Service Contract Cycle Initiation Management Payment Emphasize Authorization of Service Commitments Actualization & Efficient Management of Service Commitments Correct & Timely Service Payments Contract Request Contract Service Order Service Receipt Proforma Invoice Contractor Invoice Contractor Invoice Contractor Invoice match PI number and amount. Contractor to contact the person listed as “contact”

Service Contract Cycle Initiation Management Payment Emphasize Authorization of Service Commitments Actualization & Efficient Management of Service Commitments Correct & Timely Service Payments Contract Request Contract Service Order Service Receipt Proforma Invoice Contractor Invoice Business Process: Contract Request 1. FCX identifies need for a service and end user enters Contract Request Contract 2. FCX issues Contract to the Supplier

Service Contract Cycle Initiation Management Payment Emphasize Authorization of Service Commitments Actualization & Efficient Management of Service Commitments Correct & Timely Service Payments Contract Request Contract Service Order Service Receipt Proforma Invoice Contractor Invoice Business Process: Service Order (SO) 1. FCX generates SO against the Contract and notifies Supplier to commence work 2. Supplier completes work Receipt of Services 3. FCX confirms work has been completed and updates work completed in CAS Contractor Invoice Contractor Invoice match PI number and amount. Contractor to contact the person listed as “contact”

Service Contract Cycle Initiation Management Payment Emphasize Authorization of Service Commitments Actualization & Efficient Management of Service Commitments Correct & Timely Service Payments Contract Request Contract Service Order Service Receipt Proforma Invoice Contractor Invoice Business Process: Proforma Invoice (PI) 1. CAS generates a PI based upon Receipt of Services 2. PI is emailed to Supplier Contractor Invoice 3. Supplier receives and reviews PI prior to invoicing FCX 4. If PI matches Contractor Invoice: • Contractor sends invoice to FCX (Invoice must reference FCX’s PI No. and match amount) • FCX receives invoice & pays Supplier 5. If PI does not match Invoice: • Reconciliation required prior to invoicing Contractor Invoice Contractor Invoice match PI number and amount. Contractor to contact the person listed as “contact”

Service Contract Cycle Initiation Management Payment Emphasize Authorization of Service Commitments Actualization & Efficient Management of Service Commitments Correct & Timely Service Payments Contract Request Contract Service Order Service Receipt Proforma Invoice Contractor Invoice Business Process: Contract Request 1. FCX identifies need for a service and end user enters Contract Request Contract 2. FCX issues Contract to the Supplier Business Process: Service Order (SO) 1. FCX generates SO against the Contract and notifies Supplier to commence work 2. Supplier completes work Receipt of Services 3. FCX confirms work has been completed and updates work completed in CAS Business Process: Proforma Invoice (PI) 1. CAS generates a PI based upon Receipt of Services 2. PI is emailed to Supplier Contractor Invoice 3. Supplier receives and reviews PI prior to invoicing FCX 4. If PI matches Contractor invoice: • Contractor sends invoice to FCX (Invoice must reference FCX’s PI No.) • FCX receives invoice & pays Supplier 5. If PI does not match invoice: • Reconciliation required prior to invoicing Contractor Invoice 3. Contractor Invoice match PI number and amount. Contractor to contact the person listed as “contact”

Benefits of CAS Supplier Benefits Less reconciliation effort due to proforma validation prior to invoicing Match between Contractor Invoice and Proforma Invoice prompts automatic load of invoice with timely and accurate payment to supplier Improved communication with FCX on contract milestones such as upcoming expiration dates Direct communication with FCX End User for contract transactions and services rendered

Data Conversion Plan Active Contracts, Service Orders, and Invoices will be converted into the new system No action is required by supplier for conversion To ensure FCX has correct email addresses for existing Service Orders, Suppliers should fill out form before leaving summit today All invoices that are approved for payment in Ellipse prior to the go-live date will be loaded into CAS Existing invoices converted All invoices that are not approved in the Ellipse system by the go-live date will be backed out of Ellipse and loaded into CAS after they are validated by the approver Therefore, it is imperative for the end users to clear their invoice approval queues before the go-live date.

Transition Plan Suppliers should work with FCX users to get open invoices approved prior to Go-Live Date Services performed prior to Go-Live Date can still be invoiced with Service Order Number Services performed after Go-Live Date must include Proforma Invoice Number Invoices without a PI number will be returned to Supplier (to email listed on Contractor invoice) Invoices with mismatch will be sent to Supplier and Contract Responsible for resolution All invoices that are approved for payment in Ellipse prior to the go-live date will be loaded into CAS Existing invoices converted All invoices that are not approved in the Ellipse system by the go-live date will be backed out of Ellipse and loaded into CAS after they are validated by the approver Therefore, it is imperative for the end users to clear their invoice approval queues before the go-live date.

Training Plan Step 1 Step 2 Step 3 Supplier Summit Meetings Quick Reference Guide Service Contract Hierarchy Sample Service Order Sample Proforma Invoice Invoice Submission Invoice Inquiry Discrepancy Resolution Step 3 Contact Local Contract Administration Team

Implementation Plan Supplier Summits: July 13th – 28th FCX User Training:  July 7th – August 15th North America Go-Live: August 17th

CAS Support General questions about the CAS project can be emailed to the GSCCASIntegrationHelp@fmi.com CAS training material (Electronic version of Supplier Quick Reference Guide) Will be posted shortly at www.fcx.com If needed earlier contact Veronica Rosell at veronica_rosell@fmi.com

Comments & Questions

Supplier Breakout Session

Service Contract Hierarchy End User Contract Administrator End User Contract Responsible CAS Supplier Contract Request(s) Service Agreement Service Order Service Receipt Proforma Invoice Contractor Invoice Service Receipt Service Order Service Order End user will create contract request Contract Admin will determine which see if an existing service MSA exists and create a supplement agreement to that MSA or CA will create a new MSA AND a supplement agreement or CA will create a stand alone service agreement. End user will then create one or multiple Service Order against the contract Once work is completed, Contract responsible will enter service receipt in CAS. Multiple service receipts can be entered against a contract, as long as the SO amount is not exceeded. CAS will auto generate one PI per Service Receipt which will be emailed to supplier. Supplier must invoice 1 invoice for every PI. Multiple invoices to 1 PI is not allowed. Service Orders can have multiple Service Receipts Each Service Order will have a Contract Responsible person who is designated as the person that will approve Service Receipts for that Service Order and resolve invoice discrepancies. Contract Responsible and End User will often be the same person Multiple End Users can create multiple Service Orders against a contract Once Service Receipt is created CAS will automatically generate one Proforma Invoice, and Supplier will only be allowed to submit one invoice for each Proforma Invoice. Supplier will not be able to combine several invoices into one. Supplier invoice must match Proforma Invoice amount. However, if Supplier believes Proforma Invoice is incorrect. Supplier should contact person listed on the Proforma Invoice to resolve discrepancy.

Sample Service Order (Work Authorization) FCX contact to resolve discrepancies

Sample Proforma Invoice Contractor Invoice must include PI number & match amount Proforma Invoice will be sent to email listed

Invoice Submission Contractor Invoices Must include Proforma Invoice Number (Invoices without a PI number will be rejected) Should include Supplier’s email address Must match amounts from Proforma Invoice Does not need to have Service Order listed Should be submitted to fmi@metasource.com

Invoice Inquiry Approved Invoices Unapproved Invoices Status can be viewed in VIP portal at http://vip.fmi.com Unapproved Invoices Status will not be visible through VIP Portal Questions regarding unapproved Invoices can be directed to: Phone: 602-366-8200 Email: PHX-FSS_AP@FMI.COM Fax: 602-453-1639

Discrepancy Resolution Discrepancy resolution should take place before Supplier submits invoice If Supplier submits an invoice with a PI number, but it does not match PI, the following steps will be taken: Invoice will be loaded but not paid Contract Responsible person will be notified of discrepancy Contract Responsible can choose to: Reject Invoice - Supplier will be notified and will need to send corrected invoice Modify Service Receipt in the system and approve invoice Create a new Service Receipt/Proforma Invoice and tie the invoice to the new PI If Contract Responsible modifies or creates a new service receipt, then Contract Responsible has the option to send the revised Proforma Invoice to the supplier. A modified PI will still contain the same PI number but different version number A new Proforma Invoice will contain a new Proforma invoice number Talking points Return to Training Plan