Oracle GTM Usage in Europe Asli Yimenicioglu Principal Product Strategy Manager April 2013

Agenda Oracle Global Trade Management Some of Our Customers Overview Current Features Roadmap Some of Our Customers

Oracle Global Trade Management (GTM)

What is Global Trade Management? Processes involved to move Goods, Information, and Money across Geographical & Fiscal borders and between Parties Typically starts with Purchase Order or Sales Order Functional Groups: Purchasing, Sales, Compliance, Operations, Finance, and Logistics External Parties: Vendors, Customers, Banks, Logistics Service Providers (LSPs), Freight Forwarders, Customs Brokers, Government Agencies 600+ Laws and Regulations 25 entities and 35 documents in a TYPICAL transaction

Typical Global Trade Transactions 3) Export from US to EU Product Classification Embargo Check/ DRPL Screening Export License Management Printing of Export Documents Electronic Communication (AES) 1) Import to US from China Product Classification Embargo Check DRPL Screening Import License Management Printing of Import Documents 4 5) Export from EU to Other Countries Product Classification Embargo Check DRPL Screening Export License Mgmt Printing of Export Docs Electronic Communication (NCTS, ATLAS, etc.) Trade Preference Processing Restitution Handling 5 1 3 2 4) Import to EU from US Product Classification Embargo Check DRPL Screening Import License Management Free Circulation Transit Procedures Duty & VAT Calculations Printing of Import Documents Electronic Communication (NCTS, ATLAS, etc.) 2) Import to US from Mexico Product Classification Embargo Check DRPL Screening Import License Management NAFTA

Global Trade: Business Drivers Why invest in a global trade management system Supply Chain Security Comply with existing and future security programs Mitigate risk Trade Finance Control flow of funds Link in financial activities Reduce settlement times Global Sourcing Lower unit costs Increase profitability Compete effectively Transport Procurement Financial Settlement Compliance Customer Demands Quickly access new markets Customer satisfaction Visibility Regulatory Compliance Increased variability and risk Quickly access new markets

Global Trade Remains Manual Process In many key areas, most companies have no automated capability “Forty percent of respondents utilized manual/spreadsheet-based processes to manage their import operations and compliance…” Import Operations and Compliance Benchmark Study (2011), American Shipper

Global Compliance Risk Lower Profit Margin Long & Inconsistent Customs Clearance Times High Safety Stocks High Inventory Holding Costs Unmet Demand Low Revenue Expired Product at the Customs High Product Costs Inaccurate Documentation & Information Fines Inaccurate Classification & Valuation High Duty & VAT High Global Trade Costs

Global Compliance Risk “Complex, cross-border global transactions account for more than $10 trillion in 2007 and, according to a recent McKinsey report, are expected to grow to more than 70 trillion by 2025.” Risky Business (2008), Risk & Insurance Lower Profit Margin Long & Inconsistent Customs Clearance Times High Safety Stocks High Inventory Holding Costs Unmet Demand Low Revenue Expired Product at the Customs High Product Costs Inaccurate Documentation & Information Fines Inaccurate Classification & Valuation High Duty & VAT High Global Trade Costs

Oracle GTM Differentiators Native Trade & Transportation Platform Oracle GTM is built on the same platform as Oracle Transportation Management (OTM) providing customers with a holistic global logistics platform to manage their trade and transportation requirements. Adapt Quickly No hard-coded regulations – Company-specific, configured trade rules Changes to regulations made by business user vs. custom coding Adapt quickly to new markets, products, mergers, regulations, etc. Global Design Automate and manage the trade compliance and import/export challenges encountered in global cross-border transactions. Single source of truth for global trade 11

Oracle Global Trade Management Unique global trade management platform Control Globally… Classify, screen, monitor, & file for all orders / shipments All divisions All product flows (inbound, outbound, internal) All modes of transportation Visibility across the global network Accommodate line of business, geographic region, and supply chain flow-specific business practices Workflows, business logic, reports, etc. Using multiple languages and currencies User interface configuration by region / country, user groups Execute Locally… Manage Centrally… All operational information in one location Centralized visibility Centralized reporting Single set of integration points for customers, brokers, & other partners Single information technology infrastructure to support

Enterprise-Wide Global Trade Management Multi-domain architecture Top Level Full Visibility Parent Company … Business 1 Business 2 Business n Domains Partitioned Visibility & Functionality Configure Software for Specific Divisions / Lines of Business Business Logic: User interface, workflow, reports, integrations Security: Segmented data and functional security “Customization” via configuration Expand without having to buy another system

ERP Integration ERP agnostic SAP, Oracle, etc Multiple sources integrated to single GTM instance Multiple order types Sales order Purchase order Service order Shipments Global Trade Management Transactions Received Master Data XML / Web Services Transactional Data Manual Engine Calls

Oracle Global Trade Management 6.3 Product Features by Module Oracle Global Trade Management Global Trade Content Upload & Maintenance Master Trade Data Items, Parties, & Registrations Item Templates Product Classification Duty & Tax Visibility OGA, ADD, CVD Visibility Restricted Party Screening Sanction Screening Document Management System Infrastructure Transaction Processing, Workflow, Messaging, Business Monitor, Security, User Management, Advanced Layout, Work Queues… Oracle Trade Compliance Trade Control Management License Determination License Exceptions OGA, ADD, CVD Screening Document/Template Determination Corporate Policy Enforcement Other Trade Controls License Management License Repository License Assignment License Lifecycle Oracle Customs Management Customs Determination Electronic Filings & Documents Configurable Global Solution Customs Preparation Virtual Shipment Consolidation Unit of Measure Conversion Currency Conversion Basic Valuation Calculations Customs Connectivity Electronic Filings and Documents Freight Forwarder & Broker Collaboration Platform AES Filing Support Direct Connection to AES Red = New in GTM 6.3

OTM & GTM 6.3 Release Notes Available Under My Oracle Support: Direct link: https://support.oracle.com/epmos/main/downloadattachmentprocessor? attachid=1533374.1:631&clickstream=no

Oracle Global Trade Management Existing Functionality through GTM 6.3 GTM 6.1 Initial Trade & Transportation Platform Master Trade Data Management Trade Item Master Trade Party Master Product Classification Global classification repository Trade Compliance Restricted Party Screening Anti-boycott & Sanction Screening Control Determination: Licenses, Exceptions, & Other Controls Document Management Document Determination Generation & Distribution GTM 6.2 EBS Integration, Early Adopter Support Integrations E-Business Suite 12.1.3 Sales Order Management Item Synchronization Party Synchronization Classification Determination & Assignment: Rollup Support Enhanced Transaction Management Support for Assemble- and Configure-to-Order Items Usability Enhancements Sanction Screening GTM 6.3 End-to-End Export, Basic Imports License Management License Lifecycle License Eligibility Determination Assignment & Balances Customs Management Tariff Visibility & Sourcing Support Customs Filing AES Support (US Exports) Broker Collaboration Customs Documents Document Lifecycle Item Template for Classification Restricted Party Screening Workbench

Oracle Global Trade Management Product Roadmap Overview Phase 4 Import Process Support & Usability Global Trade Analytics Trade Content Expansion Import/Export Regulations Import Process & Usability Product Classification Workbench Single-level Bill of Materials Enhanced Classification Research Customs Management Partial PO Consolidation Expanded Filing Partnerships (US/EU) Import Entry Workbench Document Management Canned Document templates Document consolidation/grouping Global Trade Intelligence* Phase 5 Special Duty Programs & Trade Finance Trade Preference Programs Bonded Warehouse Special Economic Zones Duty Drawback Management Trade Finance* Letters of Credit/Open Accounts Wire Transfer process Invoice Matching/Reconcilation Landed Cost Planning Sourcing workbench ALC vs. ELC reconciliation Integration to UCM (Recordkeeping) Future Product Direction Free Trade Agreements, Fusion Free Trade Agreements* Supplier Solicitation FTA Qualification & Rules of Origin Fusion Integrations Tax, LCM, Sourcing Supply Chain Security AEO (EU) C-TPAT (US) GTI: Carrier/Broker Scorecards * Proposed New Price List Item

Oracle GTM Customers

Industrial Manufacturing A Few of Our Customers High Technology Industrial Manufacturing Aerospace & Defense Life Sciences Retail Oil & Gas

Oracle Project Overview Worldwide Product Classification Export License Determination (Automated & Manual) Export Screening (Automated & Manual) Results Fast and accurate product classification, export screening and export license determination Increased visibility Shorter order release times

GLOBALFOUNDRIES Company Overview GlobalFoundries Inc. is the world's third largest independent semiconductor foundry. Project Overview USA, Germany, Singapore Restricted Party List Screening, Sanctioned Country Screening Classification (ECCN) License Determination & License Management with balance depreciation Results Fully automated export compliance control replaced spreadsheet records of licenses and end user statements Item classification is more efficient and accurate. Flexible classification code management and look up Visibility and control of export licenses: usage, expiration, available quantity/value and renewal are recorded in GTM

February 2013 Global Trade @ Seagate © 2010 Seagate Technology LLC

Seagate Products, Customers and Markets Internal Storage Branded Products Services Computing Personal Storage Cloud Wireless Storage Consumer Electronics Home Media Sharing SMB Storage Video Capture © 2010 Seagate Technology LLC

Seagate Global Presence Springtown, N. Ireland Dublin, Ireland Amsterdam, Netherlands Shakopee, MN Bloomington, MN Munchen, Germany Paris, France Beijing, China Suwon, South Korea Maidenhead, UK Shrewsbury, MA Tokyo, Japan Fremont, CA Wuxi, China Longmont, CO Scotts Valley, CA Cupertino, CA Oklahoma City, OK Delhi, India Suzhou, China Shanghai, China Teparuk & Korat, Thailand Taiwan Johor & Penang, Malaysia Science Park, Singapore Ang Mo Kio, Singapore Woodlands, Singapore Sydney, Australia HQs, Admin and/or Sales Design Customer Support Drive & Component Mfg © 2010 Seagate Technology LLC

Seagate’s GTM Implementation

Background Seagate joined Oracle Global Trade Management Strategy Council in 2007 Purchased GTM in 2010 Implemented GTM in 2011 Implementation partners Oracle Consulting and Wipro Go-live January 2012

Item Classification Maintain multi-country classifications ECCN, HTS, License Flag Allows for country-specific rule development Assignment at item record – Preferred Assigned classifications are used for current and future orders. Time saving from just assigning classifications once for multiple transactions

Item Classification (continued) Assignment at transaction line Miscellaneous part numbers to handle unexpected items “Parent” classification Classifications are copied from related items to minimize time spend classifying same items Bulk Loader Custom process to upload spreadsheet of classified items. Allows for mass classifications for time saving.

Contact Screening Screened when contact is created or updated, and when used on a transaction Sanction Country Red Flag List Restricted Party List – Contact Name Restricted Party List – Contact Address Seagate’s own Restricted List for black listed customers Stand Alone Restricted Party Screening Provides adhoc screening outside of GTM Bulk Loader Custom process to upload spreadsheet of blacklist names and addresses

Export Compliance Rule Screening Automated assignment of license or license exception (NLR & ENC) Based on ECCN, Regions (based on “reasons for control”), Other conditions Implemented for United States (used globally) Implemented for Singapore as Jan 2013 (SG export only) Working on Malaysia, European Union, Korea, Hong Kong, Thailand

Import Compliance Rule Screening Automated holds for import review Based on HTS, ECCN, Item Description, Remark (“Used”) Implemented for China, Malaysia, Singapore, Thailand, United States Allows Seagate to move from manual holds via email to a process managed by GTM Reduction in process breakdown and cost from fines/delay

Business Monitor and Reports Process Improvement Allows world wide team to work off of a single dashboard with instant visibility to management Business Monitor Contacts that require review Escalation review Transactions on hold Item updated Expired item classification Reports 13 custom reports for auditing, review, reference vs manual SQL queries from previous system

Q&A

The preceding is intended to outline our general product direction The preceding 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. As noted here, this presentation is intended to outline our general product direction. The timing of features can vary, but this is meant to help you understand our current priorities in tackling new capabilities.