Integrated Innovation – From Shop Floor to Top Floor

2 Microsoft in Verticals  Priorities – supported by global teams  Retail & Hospitality  Manufacturing  Healthcare and Life Sciences  Financial Services  Professional Services  Communications

3 Microsoft in Manufacturing  Individual Manufacturing Teams  Oil & Gas  Consumer Packaged Goods  Chemicals  High Tech  Automotive & Industrial Equipment

4 1) increasing top line revenue 2) reducing operating costs 3) improving employee productivity 4) increasing customer satisfaction To establish Microsoft and its partners as trusted advisors in manufacturing by delivering solutions that drive customer value by: Microsoft Manufacturing Industry Mission

5 FY03/04 FY05/06 FY07/08 Credible Solution partner in Manufacturing Seller of Productivity Software Trusted Advisor and Thought leader in Manufacturing Shape the industry Player Shape the industry Have a seat at the table Partner Have a seat at the table Sell what you have Provider Sell what you have The Transformation Of Microsoft’s Role In Manufacturing

6 Microsoft – From Visibility to Vision Building a digital manufacturing enterprise  Visibility  Optimization  Automation  Collaboration  Anticipation  Execution  Vision

7  Integrated platform  Spans and connects the entire solution cycle  Software architecture  The only way to reduce complexity and cost  Partner ecosystem and economics  Unrivaled breadth, specialization, and value ConnectedDependableProductiveBest Economics Microsoft Strategic Pillars In Manufacturing

8 “Our standard of living depends on the wealth- generating capacity of manufacturers across Canada – on their ability to innovate, continuously improve productivity, and deliver customer value.” “A strong manufacturing sector has been and must continue to be a critical element of Canada’s economic success.” “Our standard of living depends on the wealth- generating capacity of manufacturers across Canada – on their ability to innovate, continuously improve productivity, and deliver customer value.” “A strong manufacturing sector has been and must continue to be a critical element of Canada’s economic success.” Canadian manufacturers produced and shipped $560 billion worth of goods in 2004 The value of manufactured shipments has increased by 83% since 1990 Manufacturing has grown 16% faster than the Canadian economy as a whole over the past thirteen years There are approximately 54,000 manufacturing facilities operating across Canada today, about 20,000 more than existed only a decade ago. Manufacturing accounts for 77% of Canada’s merchandise exports and for two-thirds of our total exports of goods and services. Canadian manufacturers produced and shipped $560 billion worth of goods in 2004 The value of manufactured shipments has increased by 83% since 1990 Manufacturing has grown 16% faster than the Canadian economy as a whole over the past thirteen years There are approximately 54,000 manufacturing facilities operating across Canada today, about 20,000 more than existed only a decade ago. Manufacturing accounts for 77% of Canada’s merchandise exports and for two-thirds of our total exports of goods and services. The Importance of Manufacturing in Canada Source: CME 20/20 Report – The Future of Manufacturing in Canada – Feb. 2005

9  Supply Chain Fragmentation  Internal Collaboration and Business Intelligence  Commodity Price Increases  Developing SCM Talent  Power Shift from supplier to customer  Regulatory Compliance  Protecting Intellectual Property  IT Integration Common Issues – Areas of Risk Source: Microsoft Research Report – Feb. 2005

10  Rising Canadian dollar  Overcapacity  Availability of skilled personnel  High tax & regulatory costs  Changing patterns of customer demand  Competition from China  Accelerating pace of technological change  Need to develop new markets  U.S. border bottlenecks (post 9/11 world) Canadian Specific Issues Source: CME 20/20 Report – The Future of Manufacturing in Canada – Feb. 2005

11  Supply Chain Fragmentation  Internal Collaboration and Business Intelligence  Developing SCM Talent  Regulatory Compliance  IT Integration  ERP solutions supporting XML  BizTalk, Sharepoint Portal Server, SQL Reporting Services  HR performance management sol’ns  OSA for SOX; BI & reporting tools  BizTalk; XML Challenges mean Opportunities

12 Partner Demonstrations  Matrikon  Profile  Fullscope  Profile  AlphaMosaik  Profile  Acrodex  Profile  Wellpoint  Profile

13 Thank you  Matrikon  Fullscope  AlphaMosaik

14 Thank you  Matrikon  Wellpoint  Acrodex

15 Recap: Microsoft in Verticals  Priorities – supported by global teams  Retail & Hospitality  Manufacturing  Healthcare and Life Sciences  Financial Services  Professional Services  Communications

16  Start building a stronger value proposition; incorporate ISV solutions & the value of the platform  Pick a vertical & declare yourselves; develop competencies & business plans; forge partnerships  If you want Orlando Ayala to hear your views on manufacturing (May 20 th in Toronto).. send an to  For manufacturing, tell us what you need in FY06.. send an to Calls to Action

17 Thank you for attending! Q&A