Saba Confidential 1 Next Generation HCDM April 16, 2003 E-Learning Brazil Conference Magna Session Bobby Yazdani President and COO

Saba Confidential 2 The world’s best organizations are focused on the success of their people

Saba Confidential 3 New Business Strategy: HCDM Human Capital Development & Management is a new business strategy to improve organizational execution by implementing a management system to align, develop and manage people.

Saba Confidential 4 Today’s Discussion Global Challenges Organizational Execution New Definition of HCDM A Proven Solution HCDM in practice today

Saba Confidential 5 Disruptive Economic and Market Forces Create Opportunity for HCDM Solutions Globalization Technological progress Deregulation Intense competition Demographic change Internet Demanding customers and investors Fragile customer loyalties Frequency and complexity of interactions with customers, partners, and employees Volatility and rapid change

Saba Confidential 6 HCDM is the strategy to increase Organizational Execution The only sustainable competitive advantage is the ability to execute faster and better

Saba Confidential 7 What Is “Organizational Execution?” Execution is the combination of the enterprise management system and the integrated set of behaviors that organizations use to gain competitive advantage.

Saba Confidential 8 HCDM offers an integrated approach to Organizational Execution An enterprise management system that brings together: Learning Development Goals & Objectives Management Performance management Collaboration Talent management Knowledge management Ongoing analysis — and links to the strategy and operations of the organization

Saba Confidential 9 Development Planning Certification Chat/ IM Content Publishing Performance Analytics Saba HCDM Solution Map Saba Enterprise Platform Competency Assessments Goal Setting Organizational Alignment Talent Management Customer Education Compliance Sales and Channel Readiness For Profit Training Corporate University Enterprise Performance Enterprise Learning Management Collaboration and Communication Knowledge Management Enterprise Analytics Q & A Communities of Practice Web Conferencing Threaded Discussion Standards Compliance Content Management Content Integration Content Creation Learning Analytics Performance Tracking Content Repository Data Warehousing Analytics Dashboard Connectors Subscriptions

Saba Confidential 10 HCDM is all about Results Business GoalsValue Drivers Reduce Time to Market Increase Sales Productivity Increase Channel Productivity Revenue Acquire More Customers Faster Integrate M&A Faster, Better Market Share Reduce Operating Costs Reduce Compliance Costs Cost Reduction Avoid Missing Financial Goals Avoid Loss of Competitive Position Avoid Being Out of Compliance Risk Reduction

Saba Confidential 11 Increasing Sales Productivity Challenge: Increasing sales and aligning the skills of disparate employees Solution: Saba Enterprise Learning to consolidate and track learning programs for operational staff Results Improving time to competence Reducing shipping schedules Increasing sales productivity

Saba Confidential 12 Reducing Cost and Risk and Ensuring Quality Challenge –World's leading medical technology company needed to demonstrate to FDA that required training has occurred –Risked billions of dollars in fines and losses without successful audits Solution –Solve 21 CFR 11 & Section 508 problems; get Sales people back to work Result –Medtronic compliance program has been validated as required by 21 CFR Part 11, eliminating shutdown risk –Sales can now start in 6 weeks, not 12 as before, increasing sales time by 50%

Saba Confidential 13 Market Share Challenge –#1 U.S. maker of household products needed to create a global view of enterprise skill profile and consolidate learning globally Solution –Saba Learning, Enterprise Edition powers RapidLEARN initiative delivering learning to P&G’s more than 100,000 employees in 80+ countries Result –Consolidated multiple systems into one –Moved from less than 5% use of e-learning to over 25% –Expected to save $14M over the next 5 years (as of May 2001)

Saba Confidential 14 Increasing Revenue and Reducing Time to Market Challenge –World's leading storage software company needed to deliver and manage training for 9,000 customers and partners and over 5,000 employees Solution –Saba Learning, Enterprise Edition provides the ability to handle all forms of learning including ILT, WBT, and CD-ROM Result –The flexibility to distribute learning content to many audiences in a variety of different delivery methods significantly reduced training costs

Saba Confidential 15 Increasing Revenue and Market Share Challenge Support VW Mexico’s e-business initiative by transforming classroom training to e-learning Certifying personnel at 250 dealerships Solution Saba Enterprise Learning to train employees in plant and dealerships throughout Mexico and track certifications Results By ensuring channel certification, VWM can: – increase the readiness of its channel to sell new models –Improve customer service and satisfaction

Saba Confidential 16 Saba in Brazil

Saba Confidential 17 Improving Time to Market Challenge –Banco Itaú needs to be competitive at a world-class level and needs to align and improve the skills of employees located in 3,000 disparate branches and across all operating companies Solution –Saba Enterprise Learning to deliver e-learning and manage the development of 45,000 employees Goals –Accelerate time to market of new products and services –Deliver consistent, quality service that increases customer satisfaction –Improve employee competencies to increase competitive advantage

Saba Confidential 18 Increasing Competitive Advantage Challenge: –Petrobras seeks to transform corporate culture to improve shareholder value and enhance its global competitive position Solution: –Saba Enterprise Learning for an initial deployment of 15,000 employees to transform corporate culture, ensure compliance, and align employees throughout disparate operating companies Goals: –Increase employee productivity –Ensure safety compliance –Enhance competitive position

Saba Confidential 19 New Business Strategy: HCDM HCDM is a new business strategy to improve organizational execution by implementing a management system to align, develop and manage people.

Saba Confidential 20 Thank you