1. January 13, 2006F I N I S A R C O R P O R A T I O N DP / ATP -> APS -> Supplier Collaboration Global Excellence Duane Hardacre Finisar Corp. Dir. Supply Chain & Systems Strategy

2. F INISAR C ONFIDENTIAL 2 Finisar Founded in 1988 Headquartered in Sunnyvale, CA ~3400 employees world-wide Estimated F07 Revenue: $350 Million Cisco, Brocade, Emulex, HP, Dell 20 th to 4 th to 2 nd to 1 st in Sonet Markets Technology leader Industry: Overcapacity and intense competition Digital Fiber optics for Computer and Access Networks 1-2.5Gig SFPCWDM Mux/Demux SANs/LANs/Metro Metro SANs/LANs/Metro 10-Gig XFPCWDM/DWDM GBIC

3. F INISAR C ONFIDENTIAL 3 Global, Vertically Integrated Supply Chain Finisar HQ, Sales & R&D Module / OSA Mfg Wafer & OSA Mfg Passives Mfg Build-to-Order, Buy-to-Forecast Standard “4” Commit Process Singapore

4. F INISAR C ONFIDENTIAL 4 Current R&D / NPI Landscape (SBR & NBR) IPH NPI SNY R&D Fremont OSA/ Wafer R&D HANA Singapore R&D Fabrinet OSA/ Wafer SBR OSA/ TO Can /Mod SBR PCBA SBR OSA/ TO Can SBR MOD. SBR / NBR OSA/ TO Can SBR MOD/OSA SBR / NBR PCBA SBR AOC OSA./ Header Boms are 14 levels deep 1000 parts on the BOM but less than 100 from a make/buy concern

5. F INISAR C ONFIDENTIAL 5 2004 – Supplier Collaboration iSupplier & Collaborative Planning Asia Europe USA Asia/USA Suppliers Finisar

6. F INISAR C ONFIDENTIAL 6 2005 Quoting(Pricing) Channel / Dist. ManagementASCPSalesForecasting Web-Based GOP(ATP) Finisar Supply Chain Oracle 5.10 Daily Business Intelligence Purchasing & Commodity Mgt Purchasing & Commodity Mgt Supply Chain & Operations Supply Chain & Operations Sales & Marketing Sales & Marketing TMPRM

7. F INISAR C ONFIDENTIAL 7 Timeline Mar - 05 Demand Planner Group I JulOct Sept-16 Demand Planner Group 2 Oct-17 ASCP Sept-26 World-Wide GOP (ATP) Sept-26 Pilot Customers GOP Oct-30 All DBI (Purchasing & Commodity Spend) LIVE!! Sept-9

8. F INISAR C ONFIDENTIAL 8 Demand Planner

9. F INISAR C ONFIDENTIAL 9 Sales Forecasting – Current State Topline Hosted Solution Oracle ERP Evaluated Azerity “Pro-Channel”, SalesForce.com Integration + Support = $$$

10. F INISAR C ONFIDENTIAL 10 Demand Planner- Main Forecasting Worksheet ABC Company

11. F INISAR C ONFIDENTIAL 11 Demand Planner – Actuals by RSM ABC Company John Smith

12. F INISAR C ONFIDENTIAL 12 Who are you designing the tool for? Get sales involved early & own the project Establish Corp. product grouping (families) Identify key worksheet layouts & reports Can be very helpful for S&OP Hierarchy design Performance trade-offs Demand Planner – Lessons Learned

13. F INISAR C ONFIDENTIAL 13 ASCP & GOP (ATP)

14. F INISAR C ONFIDENTIAL 14 ASCP & ATP - Today’s Process RSM Inside Sales 3 rd party Rep. Planning Purchasing Inventory Production “The Answer” Email Email Phone Phone When? How much? Customers EmailEmail Phone Phone Email Email Phone Phone Email Email Phone Phone

15. F INISAR C ONFIDENTIAL 15 The Virtual Way RSM Inside Sales 3 rd party Rep. When? How much? Customers ATP Engine Generates the Commit Real Time!!! Key Component Availability Key Component Availability Work Order Completion Date Work Order Completion Date Available Inventory Available Inventory Planned Order Completion Date Planned Order Completion Date Lead-times Lead-times Let the world look into the factory!!! Planning Purchasing Inventory Production

16. F INISAR C ONFIDENTIAL 16 Multi-Org MPS Today’s Architecture Sales Forecast Ipoh Production Plan (Oracle Forecast) SNY Production Plan (Oracle Forecast) SNY MDS Ipoh MDS Ipoh SNY Multi-Org MRP Ipoh SNY Sourcing Graphical Pegging From Supply to Demand Sales Orders Consume Forecast WIP Purchasin g Planned Orders Planned Orders AOC Production Plan (Oracle Forecast) AOC MDS AOC Sourcing AOC Sourcing Close-Loop Forecasting Tool

17. F INISAR C ONFIDENTIAL 17 ASCP Plan Overall Demand Planner & ASCP Model Ipoh SNY Sourcing Advanced Graphical Pegging From Supply to Demand WIP Purchasing Planned PlannedOrders AOC Sourcing Demand Planner Sales Forecasting Cycle Loads Material Family Forecast Planned PlannedOrders Supplier Collaboration Order Mgt ATP

18. F INISAR C ONFIDENTIAL 18 Nice ASCP & GOP Features Horizontal Plan  Product Family / Members  Preferences  Drill Through  Multiple Time Buckets  View Multiple items / Copy Forecast Consumptions Product Family Consumption Plan / View Substitutes “Related Exceptions” Pegging Layout, Speed Latest Acceptable Date

19. F INISAR C ONFIDENTIAL 19 Cautions ATP inquiry – not for sales ATP reschedules (“pull-ins”) & date checks ATP forward & backward scheduling  Substitutes & partials Execute substitute recommendations (WIP) WIP loops – latest patches provides a profile option to resolve this

20. F INISAR C ONFIDENTIAL 20 DATA, DATA, DATA Understanding  Profile Options  ODS & PDS (ATP)  Override – (ATP)  Plan Options ECC vs EDD (Material Constrained Plan - sorry no capacity) Pegging (Demand Priority & FIFO) Plan Buckets – (Impact on LT & Reschedules) Plan Items (Demand & Supply Items, Demand/WIP Components..etc Summary Lessons Learned

21. F INISAR C ONFIDENTIAL 21 Configure 80% POC design Validate, assess business impact, adjust Documentation Choose the right consultants Start of simple What’s missing Summary Lessons Learned

22. F INISAR C ONFIDENTIAL 22 Planning & Purchasing Reporting/Analysis Bom Structure & Supply Chain Analysis Example:

23. F INISAR C ONFIDENTIAL 23