1. UC Ariba Working Capital Management Becoming a Discount Pro! © 2011 Ariba, Inc. All rights reserved.

2. Agenda Overview of WCM Suite of Solutions Demo – What’s new since last year What’s coming – Roadmap themes How is it helping other users?  Customer Stories  Best Practices  Benchmarks Working Capital Karaoke 2 © 2011 Ariba, Inc. All rights reserved.

3. Manage Cash Collaborative Finance Management 3 Collaborative Finance Management improves the money flow between buyers and suppliers through automated invoice, payment and working capital management for: This is Collaborative Finance Management Improved efficiency and effectiveness Greater visibility Better liquidity Increased savings Reduced supply chain risk © 2011 Ariba, Inc. All rights reserved.

4. Corporations have been depositing 42% of their short- term cash in bank accounts this year, compared with 25% in 2008 Challenges for Finance 80% of invoices are paper 23 days to approve an invoice 70% of discount opportunities are missed 30% of invoices have exceptions costing $600K for every 100K invoices Low interest and tight credit  supply chain risk 4 Where's Corporate Cash? In the Bank, CFO Magazine August 3, 2010 http://www.cfo.com/article.cfm/14514893/c_2984367 http://www.cfo.com/article.cfm/14514893/c_2984367 4 © 2011 Ariba, Inc. All rights reserved.

5. Beyond Efficiency to Effectiveness Outcome Enablers Business Goals Balance Sheet Impact P&L Impact WC Strategy Process Redesign Supply Chain Finance Term Strategy Process Redesign Discount Pro Procure-to-Pay Invoice Automation Working Capital Improvement Discount Savings Transaction Efficiency Improve Visibility and Control Mitigate Supply Chain Risk Must- Haves 5 © 2011 Ariba, Inc. All rights reserved.

6. Working Capital Challenges Competing Objectives between Buyers and Sellers 6 6 working capital challenges want to hold onto cash want to get paid fast Working Capital Tension BuyersSuppliers Need to unlock working capital Maintain or increase DPO Need better return on cash Need to minimize liquidity risk in supply chain Need to unlock working capital Maintain or decrease DSO Need better access to cash Face significant liquidity risk due to credit crunch © 2011 Ariba, Inc. All rights reserved.

7. 7 Challenges with Traditional Approaches to Liquidity working capital challenges Not sustainable Introduces Liquidity Risk 50% + Discounts Missed Avg. < 10% spend Fed Funds = 0.00 - 0.25% Historically Low Return Fed Funds/Libor Indices Contract Negotiations 2-Part ERP Terms Phone Calls to Suppliers Extend DPO Push Terms Out Pay Suppliers Late Money Market Funds Commercial Paper Problems Maximize Return on Capital Maximize Discount Potential Optimize Working Capital 7 © 2011 Ariba, Inc. All rights reserved.

8. Ariba’s Working Capital Solutions Flexible suite to help you manage cash better 8 Payment visibility and low-cost third-party financing permits on-demand payment acceleration 8 Suppliers sell receivables in online marketplace to highest bidder and get paid faster Offer buyers payment extension and rebates while suppliers get paid faster Expand supplier participation and leverage dynamic discounting with timing and cash use control Supply Chain Finance P-cards Receivables Finance Early Payment Discount working capital challenges © 2011 Ariba, Inc. All rights reserved.

9. Broad Spend Segmentation Analysis Typical Example 9 Low $ Volume/High # Suppliers (10,000’s) Non-strategic, easily replaceable, high Buyer leverage WCM Focus: Receivables Financing, Discount, Pcard Moderate-High $ Volume/1,000’s of Suppliers Moderately strategic Mix of Med-Small WCM Focus: Discount & Receivables Financing High $ Volume/Low # suppliers (~50-300) Strategic Suppliers, critical to supply chain Larger Suppliers WCM Focus: SCF $ Spend # Suppliers High Low ~2501,000’s 10,000’s Buyer Value P-Card Rebates & WC Benefit Buyer Value: DPO Increase, Early Payment Discounts Buyer Value: DPO Increase, Reduction in WC © 2011 Ariba, Inc. All rights reserved.

10. 10 Discount Pro – Buyer Perspective ARIBA working capital management solutions Visibility and Control Actionable information to identify and act upon discount opportunities Dashboard and Analytics Early Payment Discount Improve management reporting of bottom line savings and organizational impact Cash Flow Control Control the amount of cash, rate of return, and timing of cash used for discount program © 2011 Ariba, Inc. All rights reserved.

11. Visibility and Control Actionable information to identify and act upon discount opportunities Collection Cost and Timing Reduce the cost and effort required for collections. Lower DSO through process optimization and receivables acceleration Improve Cash Flow Control the invoices you want accelerated in exchange for an agreed upon discount rate 11 Discount Pro – Supplier Perspective ARIBA working capital management solutions Early Payment Discount © 2011 Ariba, Inc. All rights reserved.

12. What’s New in Past Year Calendars  Holiday Calendars  Payment Processing Schedule Enhanced Notifications Enforced Standing Terms Reporting Enhancements 12 © 2011 Ariba, Inc. All rights reserved.

13. Discount Pro Demo 13 © 2011 Ariba, Inc. All rights reserved.

14. WCM Roadmap Themes Enhanced Discount Discovery and Collaboration  PO Flip and eForm Early Pay Requests  Notification Push Buy-Side Cash Flow Analysis Tools  Real-time Discount Performance Tracker  Forecasting Tools  Cash Flow Dashboard Discount-Only Easy Integration to ERP 14 © 2011 Ariba, Inc. All rights reserved.

15. Customer Stories Best Practices Benchmarks 15 © 2011 Ariba, Inc. All rights reserved.

16. Increasing discount capture to >90% 16 Company Sports equipment manufacturer Profile One of the world’s largest sports equipment manufacturers with global direct and channel retail outlets Ariba Commerce Cloud Features  Ariba invoice Automation  Ariba Discount Pro ChallengesSolutionsResults $600 million spend across 260 suppliers Complex services spending (marketing, retail stores …) Broad inability to take advantage of early payment discounts ̶ Few negotiated agreements ̶ Low capture rate (35%) ̶ No opportunity for discount after initial discount day (i.e. day 15 for a 2%/15 net 45 term) Unable to capture ad-hoc discounts Ariba technology to automate manual processes and capture discount opportunities Ariba services to speed implementation, optimize processes, and improve ability to act on discount capture Automated discount-related supplier interactions ̶ “Always Accelerate” and ad-hoc features ̶ Accelerate terms to every supplier ̶ Pro-rated term sliding scale to maximize capture Increased early payment discount capture from 35% to > 90% Increased supplier discount participation by 20%, Increased average discount to 1.5% (24% APR) Capturing dynamic discounts on 4% of targeted spend Over $1 million in projected annual savings © 2011 Ariba, Inc. All rights reserved.

17. 17 Enabling thousands of suppliers for PO automation, e-invoicing, remittance delivery and dynamic discounting Company Global entertainment leader Profile Leading diversified international family entertainment and media enterprise Ariba Commerce Cloud Features  Ariba Buyer  Ariba invoice automation  Ariba discount Pro ChallengesSolutionsResults Manual invoice processing led to excessive costs, large number of supplier inquiries Limited invoice-payment- cash flow visibility Difficulty managing vendor master data Low discount capture rates Automate PO creation, approval and delivery Ariba Network for supplier profile management and transmission to SAP master vendor file Working capital management solutions, including Ariba Discount Pro, for enabling dynamic discounting with suppliers Ariba Adapter for SAP integration Reduced AP headcount by nearly 30% Thousands of suppliers enabled for PO delivery and PO status, invoice management and remittance delivery Leveraging Ariba dynamic discounting feature for all suppliers. Ariba Network for supplier profile management and transmission to SAP master vendor file 17

18. Supplier Results from Ariba Network: Big-Giant Challenge with Paper  No visibility  Invoices processed in weeks or months  Delayed payments Results with Ariba Network  Real-time status visibility  Invoices paid as quickly as four days  Improved cash flow forecasting 18 “I love the Ariba service. When we submit paper invoices, it can take a long time to get our invoices approved. With Ariba electronic invoicing, we get our invoices paid as quickly as four days, and the visibility into payment status is like gold.” Joy Stoelting, Studio Manager, Big-Giant © 2011 Ariba, Inc. All rights reserved.

19. Supplier Results from Ariba Network: Photo Craft Challenge with Paper  Too many exceptions  Poor on-time payment performance  Inability to reliably forecast cash flow Results with Ariba Network  Virtually eliminates invoice exceptions  Accelerate collections from improved process, early payment discounts  “Really helps our DSO” 19 "By processing invoices over the Ariba Network, we have improved our cash flow forecasting and seen a dramatic increase in prompt payments. The substantial DSO improvement from the Ariba Network has strengthened our finances, and that’s a huge advantage in this difficult economy." Trish Jackson, Accounts Receivable, Photo Craft © 2011 Ariba, Inc. All rights reserved.

20. Best Practices Readiness  Set clear goals (# suppliers, discount income, etc.)  Align the organization – Early Payment Program Champion – Involve Treasury, Procurement, Finance/AP  Define a terms strategy Program  Closely align early payment program with supplier enablement  High-value campaign  Define early payment offer strategy – Pro-Rated Terms – Supplier Selection – Simple Segmentation Measurement  Choose a few KPIs to align with goals/objectives – # Discount Suppliers – $ Discounts Earned – Avg. % APR earned  Learn from experience…and adjust approach 20 © 2011 Ariba, Inc. All rights reserved.

21. Appendix 21 © 2011 Ariba, Inc. All rights reserved.

22. Invoice Approval Efficiency Foundational to Working Capital Value 22 1% Discount Rate Days 2% 20 10 30 Paper Invoice Approvals 60 3% e-Invoice Approvals Reduce your invoice approval cycle and  Unlock working capital opportunities  Capture discount savings  Maintain strong vendor relations Reduce Cycle Time Ariba Prorated Terms © 2011 Ariba, Inc. All rights reserved.

23. Questions 23 © 2011 Ariba, Inc. All rights reserved.

24. 24 “Safe Harbor” and Confidential Information Statement This information reflects the status of Ariba solution planning as of January 2011. All such information is the Confidential Information of Ariba (per the contract between our companies), and must not be further disclosed, as stated in the confidentiality clause of that contract. This presentation contains only intended guidance and is not binding upon Ariba to any particular course of business, product strategy, and/or development. Its content is subject to change without notice. Ariba assumes no responsibility for errors or omissions in this document. Ariba shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. © 2011 Ariba, Inc. All rights reserved.

25. UC Ariba Working Capital Management Becoming a Discount Pro! © 2011 Ariba, Inc. All rights reserved.