Agenda Introduction History of Oracle Treasury The Best Practices Journey Cash Pooling Intercompany Netting P-card Processing Global Treasury/ Banking Integration Best Practices in Treasury Getting Started … HCL Technologies -- 15 offices in India Operates 34 offices in 16 countries Headquarters in Sunnyvale, California

Paul Kirch: Director, Oracle Applications Consulting, Answerthink Currently, a Director in Answerthink’s Oracle Consulting Practice, with responsibility for consulting implementation on the West Coast More than 20 years experience in the implementation of ERP systems, principally in Finance, Global Supply Chain, and Distribution MBA in International Finance, CPA (licensed in the State of Maryland) CFA (Certified Financial Analyst) candidate, Level I, June, 2007 Worked for Oracle Corporation in the period 1995-2000, first as a Sales Consultant in Latin America and later as a Practice Manager in the Oracle One international consulting group Have worked on treasury systems design, including many of the problems related to integration, at KLA-Tencor, FEI Company, Cisco, and Qualcomm HCL Technologies -- 15 offices in India Operates 34 offices in 16 countries Headquarters in Sunnyvale, California

The Best Practices Journey Finance Functions to be Centralized Financial Shared Service Center Collections Payments AR/AP Admin Centralized Treasury Cash balances management Money market operations Currency Pools Intercompany funding FX and interest rate management Intercompany netting Partially Centralized Treasury Decentralized Treasury Long term funding Degree of Centralization

Best Practice: Cash Pooling Automated Balance Transfer for Intercompany Sweeps Best Practice: Cash Pooling R Europe Entity [TBD] USD Account, Current (OD) [ABN AMRO Amsterdam] OFF-SHORE USD ACCOUNTS in Hong Kong R FEI HK Company ASIA Net USD Position Master USD Account Current (OD) 1 AUTOMATED USD NOTIONAL POOL 2 NR Japan USD Current (OD) R Hong Kong USD Current (OD) HKD Savings (No OD) Current FX NR Singapore USD Current (OD) FX R Singapore SGD Savings (No OD) Current R Taiwan TWD DDA/Savings (No OD) Current (OD) NR Taiwan USD Current FX Operational Expenses R China CNY Current (No OD “ST-Loan”) FX R Malaysia MYR Current (OD) No Savgs allowed FX R Thailand THB Savings (No OD) Current (OD) FX ON-SHORE LOCAL CURRENCY ACCOUNTS Payables Receivables R: Resident entity NR: Non-Resident entity FX FX (Spot/Fwd/Option) available on/offshore, per regulation FX FX (Spot/Fwd/Option) available onshore only, per regulation

Best Practice: Intercompany Netting (1 of 3) “A process by which the inter-group payables of each participating group member are settled, on predetermined dates, by effecting one transfer, in the functional currency of each participant, to or from a corporate netting centre (“CNC”) Settlement of intercompany obligations (3rd parties can be included) Pre-determined calendar Payable or receivable One amount One currency

Trade Flows before Netting (2 of 3) PARENT COMPANY 230K 200K 200K 100K Eindoven 400K 200K 400K 200K 150K 120K 220K 50K 100K 500K 100K France 100K 200K 600K 100K Czech Republic United States

Trade Flows After Netting (3 of 3) Simple Example 75% Reduction of Transactions 31% Reduction in Volume PARENT COMPANY Eindoven 470K 230K France 430K NETTING CENTRE 970K 700K Czech Republic United States

Best Practice: P-card Processing Goods delivered Request (PR) ERP System Bank Statement Monthly Statement Charges submitted to bank and approved. Bank Statement Statement Lines Reconciliation

Best Practice: Integration between ERP and Global Banking Platform Global Payments Platform GlobalGateway Hub LATAM Hub NA Hub ASPAC Hub LOCAL CLEARING EMEA hub Branch Partner Bank A ERP System User Global Treasury Customer Regional Local ERP Treasury User Partner Bank Z

Best Practices in Treasury Consolidation to 1 or 2 banks – globally; reduction in the number and location of bank accounts; centralization of Treasury function Better use of cash through use of sweep accounts, cash pooling, and netting of intercompany transactions Greater transactional efficiencies including the use of electronic links to external banking partners and markets and increased use of EDI/EFT for cash receipts and cash disbursements Increased use of P-cards and Ghost Cards for low dollar transaction processing Tighter integration between banking web based portals/ global payments platforms and ERP-based Treasury management systems Straight-through-Processing (STP) of Treasury Transactions (automated confirmation e-mail, accounting, and payment scheduling) Improved information management and reporting including foreign currency exposure, daily cash position, and cash flow forecasting

Getting Started … Recognize that Oracle treasury setup heavily dependent upon company banking relationships and that Oracle Treasury configuration MUST reflect current company banking relationships Begin best practices journey by: adopting global, web based cash management solution seek to more fully integrate Oracle to back-end bank processing platform net intercompany transactions and replace intercompany cash movements with weekly/monthly/quarterly USD movements increase use of bank services, such as P-card transaction processing adopt centralized treasury/centralized disbursements processing (AP shared services) with 70% or more of dollars disbursed electronically

Copyright © 2006 Answerthink, Inc.. All rights reserved. Contact Information Paul Kirch Director, Oracle Applications Consulting Hackett Certified Advisor Answerthink, Inc. Telephone: (408) 316-5899 e-mail: pkirch@answerthink.com Statement of Confidentiality This document contains confidential material proprietary to Answerthink, Inc.. The materials, ideas and concepts contained herein are to be used exclusively to evaluate the capabilities of Answerthink to provide value-added assistance to The Williams Company. This information and the ideas herein may not be disclosed, copied or distributed to anyone outside of The Williams Company Industries or be used for purposes other than the evaluation of Answerthink’s capabilities on this particular engagement Copyright © 2006 Answerthink, Inc.. All rights reserved.