“ Opportunities multiply when seized” - the journey to Transformation - Fabienne van Booma-de Smit Vice President Finance South Europe

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 2 Oracle Corporation Scale $37.2B in revenue on a trailing twelve-month basis #1 in 50 product or industry categories 400,000 customers in 145 countries 25,000 partners employees 15 million developers in Oracle online communities Innovation and Investment 35,000 developers and engineers 18,000 customer support specialists, speaking 29 languages 20,000 implementation consultants 870 independent Oracle user groups with 355,000 members *GAAP revenue reported in USD as of May 31, 2013 Scale $37.2B in revenue on a trailing twelve-month basis #1 in 50 product or industry categories 400,000 customers in 145 countries 25,000 partners employees 15 million developers in Oracle online communities Innovation and Investment 35,000 developers and engineers 18,000 customer support specialists, speaking 29 languages 20,000 implementation consultants 870 independent Oracle user groups with 355,000 members *GAAP revenue reported in USD as of May 31, 2013

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 3 Oracle’s Business Transformation: Two Phases Get Oracle’s internal operations in order Simplify. Standardize. Centralize. Automate. Implement plain-vanilla Oracle software to run our business Enhance decision-making and accountability Increase margins Get Oracle’s internal operations in order Simplify. Standardize. Centralize. Automate. Implement plain-vanilla Oracle software to run our business Enhance decision-making and accountability Increase margins PHASE I ( ) Objectives: Undertake an aggressive acquisition strategy to expand our portfolio Add a new line of business –hardware Utilize proven best practices from Phase I to accelerate operational savings Scale business profitably Undertake an aggressive acquisition strategy to expand our portfolio Add a new line of business –hardware Utilize proven best practices from Phase I to accelerate operational savings Scale business profitably PHASE II ( ) Objectives:

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 4 Oracle’s Transformation Simplify, Standardize, Centralize & Automation Shared Services Self Service ProcessesApplications Organization Data Center NetworkData

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 5 Operational Excellence: ‘Doing things right' Business Re-Engineering at Oracle Simplify processes Standardize systems and processes Centralize in shared service centers Automate processes

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 6 Business Engineering at Oracle FromTo SimplifyOld wayBest way 1 1

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 7 Oracle’s Transformation: The Billion Dollar Story & Beyond 65+ financial apps instances Global Single Instance (ERP) Fragmented Data: tens of thousands of spreadsheets Global Data Warehouse Inconsistent Processes Global Processes Local Support Shared Service Centers Local Decision Making Centralized Decision Making Autonomous Countries Multi National Corporation Geographic Functions Global Functions Country Infrastructure Simplified Global Infrastructure

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 8 Business Engineering at Oracle FromTo SimplifyOld wayBest way StandardizeMany waysOne way

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 9 Standardize Systems and Processes Strategies Standardize policies and business rules Adopt best practices Identify global process and application owners Use open technology standards Minimize number of IT systems Strategies Standardize policies and business rules Adopt best practices Identify global process and application owners Use open technology standards Minimize number of IT systems CENTRALIZE Decision-making Where Possible

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 10 Partner with the Global Process Owner Global process definition Best use of technology Support Single Instance and Shared Services Strategy Application support & implementation services Partner with the Global Process Owner Global process definition Best use of technology Support Single Instance and Shared Services Strategy Application support & implementation services Evaluate Shared Service Center Process Use of technology Responsibility profiles and organizational structure Efficiency, effectiveness, relevance, best practices Global headcount requirements Act as Champion of Global Process & Articulate Strategic direction Understanding of global requirements Business needs and service level standards Evaluate Shared Service Center Process Use of technology Responsibility profiles and organizational structure Efficiency, effectiveness, relevance, best practices Global headcount requirements Act as Champion of Global Process & Articulate Strategic direction Understanding of global requirements Business needs and service level standards Standardize … ONE Best Global Process Linchpin of Standardization Program GLOBAL APPLICATION OWNER  In IT GLOBAL PROCESS OWNER  In Business

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 11 Business Engineering at Oracle FromTo SimplifyOld wayBest way StandardizeMany waysOne way CentralizeMany locationsFew locations

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 12 Move to Shared Services Grow the business while controlling costs Increase customer satisfaction by improving service levels Increase levels of control Fast integration of Acquisitions Grow the business while controlling costs Increase customer satisfaction by improving service levels Increase levels of control Fast integration of Acquisitions

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 13 EMEA Finance SSC – Initial scope in Countries 15 Processes Dublin 42 Countries 15 Processes Dublin

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 14 Shared Services Model Phase 1: 1: Move Tactical Processes to lower-cost locations Set up FP & A Team in Bangalore Evolution of GL Function in SSC to Global Controllers Organisation (GCO) Move remaining local processes to SSCs or GCO Leave Business Finance Local Move Tactical Processes to lower-cost locations Set up FP & A Team in Bangalore Evolution of GL Function in SSC to Global Controllers Organisation (GCO) Move remaining local processes to SSCs or GCO Leave Business Finance Local

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 15 Bangalore, India & Bucharest, Romania Bangalore, India & Bucharest, Romania Process overview – post 2004

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 16 Centralize in 5 Shares Service Centers (SSC) 197 Countries, 22 languages Controllers Order Entry AR / Cash Apps Exp Reporting Purchasing Fixed Assets Project Acct Credit & Collections Customer Data AP Comp Admin Controllers Order Entry AR / Cash Apps Exp Reporting Purchasing Fixed Assets Project Acct Credit & Collections Customer Data AP Comp Admin 197 Countries Controllers Revenue Recognition Controllers Revenue Recognition 113 Countries Controllers Revenue Recognition Procurement Comp Admin Exp Reporting Controllers Revenue Recognition Procurement Comp Admin Exp Reporting Customer Contracts Credit & Collections Customer Contracts Credit & Collections 11 Countries Customer Contracts Credit & Collections Exp Reporting Procurement Comp Admin Customer Contracts Credit & Collections Exp Reporting Procurement Comp Admin 50 Countries 113 Countries

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 17 Benefits of shared Service Consolidation QuantitativeQualitative People HC reductions Lower $ per head Higher service Redeployment of skills Process Increased efficiency Improved quality through self-service Standardized global processes One change for all Greater agility to respond to change Technology Consolidated infrastructure Faster upgrades Scalable platform Management dashboards Easier support & maintenance Business F&A costs lower by 30% Payback in 28 months Focus on the business & control Integrate acquisitions faster Corporate governance & compliance Information Accurate, meaningful, consistent & timely Improved decision making

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 18 Role of VP Finance – South Region2003 Business Partnering Contracts Comp Admin Employee Expense Processing VAT Statutory Accounting Payroll = Approx. 150 heads 2011 Business Partnering = 15 heads

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 19 Business Partnering Business Partnering Completely aligned to Sales Organisation - Commercial focus Provide Strategic Finance Leadership to the Business Provide timely, pro-active analysis and information to enable the Business to make the right decision at the right time Drive execution of P&L goals, highlight & mitigate risks, monitor progress Go beyond decision support: Take ownership and make things happen Lead Planning cycle, Business Reviews, Approval processes, Business Presentations Take a holistic view of the business Face of Finance

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 20 Business Partnering Face of Finance in Country ‘Direct the traffic’ to the appropriate Centre for timely resolution of Finance issues (Commission/Approval /Financing/Credit Check / RevRec Issues/Payroll / AP etc.) First level Finance support on many issues – Revrec,Credit Work with each of the centers to standardize and optimize global processes. Ensures exceptions are minimized based on local statutory knowledge Support Workers Council discussions to ensure smooth business activities and minimize legal risks for Oracle Local Finance Leader keeps ‘One Finance team‘ in Countries together, regardless of functional role and reporting lines Represents Finance on Local Country Strategy/Leadership Teams Face of Finance

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 21 Business Engineering at Oracle FromTo SimplifyOld wayBest way StandardizeMany waysOne way CentralizeMany locationsFew locations AutomateManualAutomated

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 22 Automate Processes B E N E F I T S Unified data model Lower costs Fewer errors Reduce process complexity Organize around end-to-end processes Use an integrated application architecture Integrate systems enterprise-wide Reduce paper flow with employee self-service Reduce process complexity Organize around end-to-end processes Use an integrated application architecture Integrate systems enterprise-wide Reduce paper flow with employee self-service

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential 23 Challenges Statutory, Tax and Cultural differences Highly refined local solutions Applications Functionality Customizations Local Decision Making Priority Conflicts & Swift Approvals Resource Bandwidth Multiple Sources of Truth Languages & Character Sets Communication & Managing Expectations Aggressive Scheduling & Transitioning Business Process interdependencies Adherence to Process Change Resistance to Change

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