1. Arcor’s Business Transformation Through Technology Enablement in the Cloud

2.  Company Profile  Background/ Challenges  Antares Program  Oracle Cloud Services  Benefits Agenda

3.  Video ARCOR. Company Profile

5. Company Profile. Sales / Investments

6. Company Profile. Distribution System

7. Background. Business Challenges Business Best Practices and Continual Improvement Increase IT value. Service, costs, benefits and efficiency Growth. Digital Economy.

8. Transformation Program Antares Business Proceses Applications Cloud Strategy

9. In-house developments. JDE 8.12-Xe Others JDE WS JDE 9.1 and integrated applications Products Administration Costs Human Resources Operations & Manufacturing Logistics & Distribution Sales and Invoicing Forecasting y DRP Data Warehousing JDE Purchasing & Supply Chain Management Administration and finances Previous to Antares (2009) From each Country with a different Model From a Group of Systems to an Integrated System To a Single Model for Arcor Group Proveedores Products Administration Costs Human Resources Forecasting y DRP Data Warehousing JDE Purchasing & Supply Chain Management Sales and Invoicing Administration and finances Final Situation (2015) Logistics & Distribution Operations & Manufacturing Background. Antares IT Objetives

10. Transformation program : Antares Redefine, update, simplify and integrate all major business processes of Arcor, based in the standardized operation of the latest version of JD Edwards. Modify the current method of "customization“ of the standard systems. Improve the pace to make upgrades to new versions on a regular basis. Minimize the OPPORTUNITY COST of having operational and technical gaps. Order to CashProcure to Pay Demand Planning Manufacturing Inventory Management Product Lifecycle Management Corporate Performance HCM Taxes General Accounting Equipment Maintenance Finance Master Data Management Business Proceses Scope

11. Antares. Processes Transformation Order to Cash Pricing policy. Discounts and actions. Order entry. Global trade. Credit managment. Logistics. Order optimization. Order preparation. Shipping operations. Legal documents. Returns and rejections. Collection managements. Checking accounts. Securitys. Freigth handling. Procure to pay Vendor Selection. Contracts. Request managemente. Quotatiosn. Price catalog administration. Purchse order management. Reorder point. Recieving process. Voucher entry. Matching.Intercompany.Payment. Pettit Cash. Travel and expenses. Monthly closure. Landed costs. Agribusiness contracts administration. Manufacturing Delivery Plan. Order preparation. Materiral. Returnos. Work in Process handling. Labor. Grower management. Discrete manufacturing. Process manufacturing. Operations manufacturing. Shop floor transaccions. Production. Finished goods. 3er party operations. Inventory management Inventory transaccions. Intercompany sales. No charge sales. Scrap, POP materials. Samples. Container manegement. Advanced warehouse management. Inventory cpunts.

12. Antares. Processes Transformation Product Life Cycle management. Product design. BOM. Packaging. Scrap. Testing process. Quality Control. Producto Launching. Claims. Post-sles services. Market withdrawals. Corporate Performance Manufacturing KPI. Logistics KPI. Sales. Procurement. Foreign Trade. Investment Budgets. Expensaes follow-aup. Corporate management reporting. Taxes. Local and global regulations. Goverment : operational data collection. General Accounting. And Corporate Finance Posting. Payrroll. Sales. Foreign trade. Banks reconciliation.Intercompany operations. Accounting closure. Cost accounting. Indirect cost allocations. Labor analysis. IFRS. Fixed assets. Banks debts entry. International payments. Foreign Bank administration. Equipment maintenance Assets management. Maintenance planning. Work order management. Time entry. Material management. Master Data Manegement Address book. Item. Customer. Suppliers. Business Units. Accounts. UDC.

13. Arcor. Mission Critical Processes Transformation Order Entry (volumen) Warehouse Management Mobile warehouse mangement Freight management 7x24 availabity 2 data centers Product support Language: spanish & English Change management

14. Antares. Why Oracle Cloud Services ? Improve infrastructure management, performance, incidents, problems, change and release Increase the reliability of the applications to transfer that confidence to the business Convert fixed costs into variable depending on fluctuations in activity levels Lower TCO Strategic Business Partner to support and provide flexibility on our current and future expansion plan Flexibility for growth and / or decrease following the Group´s activity. Achieve a Platform to facilitate the process of implementation of new technology projects in the medium and long term

15. Services in Oracle Cloud Managed +9000 users pluged to Oracle Private Cloud Private Cloud @Oracle Datacenter (Texas) Weblogic 10.3.6 64 bit OSB 11.1.1.6; SOA/BPEL 11.1.1.6 HIGH AVAILABILITY Active/Active 7000 Users 1200 Users 800 Users 700 Users 150 User Exadata JDE+ Demantra+Siebel+SOA Exalogic JDE+Siebel+SOA Sun Servers 7000 Users 3rd Party Applications (DC Link/LDAP)

16. Antares. Where OCMS Help Us? Availability Management Configuration Management Change Management Problem Management Infrastructure Services Release management Performance Management Incident Management

17. Payroll BI Collaboration (e-mail, chat) Manufacturing niche Apps BtoB App Taxes Foreign Trade Internet Sites – Intranet Sites Integration with Legacy Systems Buenos Aires Data Center

18. Oracle cloud- Architecture Key Benefits Designed to meet higher SLA Standardized platform for mission critical business applications Designed for scalability(vertical and horizontal) and high fault tolerance Efficient periodic maintenance cycles Secured using OMCS best practices Designed using Best Practices from Oracle Product Development Reviewed and recommended by Oracle Product Development Supported by OMCS Engineered Systems Experts Deployed to meet Arcor’s Business Challenges

19. Oracle Managed Cloud Services. Facts  SLAs 99,7% at Application Level  100% Uptime  59 Monitored Business Transactions/Business Proceses

20. Oracle Managed Cloud Services 2014  2014: JD Edwards Upgrade to 9.1  2014: Replatform Project to Engineered Systems  2014: Migration of New Business to the Cloud (Brazil)  2015-2017 Demantra Upgrade, OTM, Oracle content mangement, Hyperion

21. Conclusions of the Cloud Journey Business partners to continuous enhance services provided by IT focused on Core Business  Operational and transaccional updated platform  Improved service : up time, amount of incidents, etc.  Significant reduction of software TCO  Increased capacity to grow to new Business units.

22. Antares Program. Facts ARCOR WS and E1 8.12 migration to E9.1 3 years project & 3 years roll outs More than 100 key users and about 100 IT people involved Minimun customizations. Use of JDE programming standards. SOA middelware (~ 2000 Interfaces) 100% production plants & distribution centers involved. +9.000 final users impacted. New Services :Oracle Cloud New Tools: Demantra, Siebel, BPM, Hyperion

23. Antares Program. Business Benefits Business results : –Forecas accuracy –Sales Volume –Promotion management –Procure to pay Data and process Integration Single standardized Business Model Accurate and trusted information Regional shared corporate functions Optimized and Best-Practice process.

24. What´s Next Digital Economy for CPG companies. ⁻ On-line sales ? ⁻ Open Innovation ⁻ Business process orchestration ⁻ Logistics optimization The business value of It is expressed via improvements in business performance. This is a true of investments in informational, transactional and strategic applications. tner