2. PeopleSoft Supplier Relationship Management Product User Group

3. The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle. Safe Harbor Statement

4. A look back to 2001… By 2005, because of a move to virtualize operations, more than 45 percent of the value produced by Fortune 500 companies will be purchased. Downward price pressures are the norm on the revenue generating side of businesses. Increased profits can only come through a reduction in supply chain costs. Competitiveness is dependent on improved supplier relationships to reduce supply chain and operational costs.

5. “About 50% of costs for most businesses are associated with purchases, what’s spent on basic materials. If you can go after your supply chain and these costs, you can possibly avoid layoffs. In many ways, it is free money and it’s fairly easy to make happen.” Managing in Uncertain Times Today’s Decisions are Critical Mark Gottfredson, Senior Partner, Bain & Co. Fortune, December 2008 Mark Gottfredson, Senior Partner, Bain & Co. Fortune, December 2008

6. Procurement’s Direct Impact on Margin Other Costs Profit Purchases 100% 45 50 45 47.5 5 7.5 -5% Increase sales by 50% Reduce overhead by up to 20% Significantly reduce headcount A 5% reduction in purchase cost can result in a 50% increase in profit margin In order to obtain an equivalent impact, a firm would have to...

7. Costly Spend Management Leaks

8. Immediate High-Impact Opportunities Return Cost Economic Value Materials SG & A Inventory Invested Capital Assets & Equipment How can we collaborate with Finance & suppliers improve both margin & working capital? How can we eliminate unnecessary expense and spending? How can we exploit commodity price volatility? Increase Margin Decrease SG&A Optimize Cash Flow

9. Create Immediate Impact on Net Income Increase Margin Cut SG & A Optimize Cash Flow

10. Sourcing ChallengeAverage Improvement Through E-Sourcing High material costs14.3% cost savings Avg sourcing cycles 3.3 - 4.2 moCut sourcing cycles in half High transaction & admin costsReduce sourcing admin costs by over 60% Long time to market cyclesShrink time-to-market cycles by 10-15% “E-sourcing technologies deliver information visibility and global infrastructure to enhance and accelerate strategic sourcing.” Biggest Opportunity for Immediate Impact

11. Drive Immediate Price Concessions With Strategic Sourcing Increase Negotiation Efficiency & Effectiveness Accelerate Time-to-Value Eliminate Technology Inhibitors Source more spend in less time Go live rapidly Build end-user expertise Ensure proper application usage Meet & exceed IT audit requirements Eliminate ongoing maintenance Avoid Infrastructure expense Source for lowest total cost Create immediate & long term savings

12. Create Immediate Impact on Net Income Increase Margin Cut SG & A Optimize Cash Flow

13. Source: Hackett Group Performance Indicator Typical Purchasing Organization World Class Purchasing Organization % of Long-Term Contracts37% 75% Number of Suppliers per $B in Spend32210 Cost of Procurement as a % of Spend.96%.24% Cost per Purchase Order$10.35$1.52 Purchase Orders in Electronic Form17%80% Cycle Time from Request to PO (hrs.)50.21.4 Cut Transaction Costs by Swapping Labor for Technology Create Visibility Into Employee Spending Patterns Goal: Eliminate All Unnecessary Costs World-Class Procurement Drives Improvements in Effectiveness and Efficiency

14. Procurement to Payment Flow Global Agreement Business Unit B Business Unit A Pricing and spend commitments Specifications Deliverables Signatures Compliance status (e.g., supplier barred) Terms & conditions Regulations and reporting requirements Payments and account status Projects and budgets Enforce Negotiated Discounts With Embedded Pricing and Terms Enforcement

15. Profile and Banking Details eRFx & Auctions VMI & Consigned Inventory Supplier Performance Mgmt Contract Negotiation & Binding Purchase Order Execution Offload Data Entry to Suppliers Secure Web-Based Supplier Self-Service Real-time access Seamless integration Simple, single point of contact for suppliers

16. Create Immediate Impact on Net Income Increase Margin Cut SG & A Optimize Cash Flow

17. Purchasing / Payables Suppliers eSettlements Validate invoices Match invoices to purchase orders View available line items Enter invoicing information Track payment status Enter non-PO invoices Drive Efficiencies to Accounts Payable With Self-Service Invoice Entry and Payment Tracking

18. PeopleSoft Applications & Investment Strategy

19. PeopleSoft 9.0 The Extended Value Release PeopleSoft 9.0 Enables… A Superior Ownership Experience Best-in-Class Business Processes Release 9.0 Themes Extended Value Through Technology

20. Supplier Relationship Management Insight-Driven Business Processes Business Insight Expanded KPIs for buyers and managers Summary metrics at business unit level Supplier performance analytics pagelet SRM Dashboard Business Processes Request for contract creation SLA compliance tracking and non- compliance alerts Contract Management New time reporting functions & flexibility Expanded service coordinator capabilities Services Procurement Amount-only requisitions Off-catalog request enhancements Requisitioning

21. Supplier Relationship Management The Right Tools to Drive Value Central Contract Repository Central Contract Repository Contract & Clause Upload / Import to Central Repository Supplier Contract Management Back-Port to R8.8 Favorites and Template Enhancements Re-Open and Adjustment of Closed Purchase Orders / Requisitions

22. The Current Release PeopleSoft 9.0 Current Upgrade “Plus” Paths Release Automated, One-Step Upgrades 8.9 8.8 8.4 9.0 MP5 Current Release Upgrade Scripts Available on Customer Connection < 8.4 Multi-Step Technical Upgrades

23. What Today’s Customers Are Saying Differing Needs for Different Constituents “I need easy to use applications and tools that allow me to do my job the way that is best for me.” “Ensure the solution is functionally complete to meet the needs of my business and my industry.” “Help me address my internal stakeholders’ needs more quickly at a lower cost.” BusinessOwners EndUsers IT ITManagers

24. Navigation Menu Only Appears When Pulled Down Includes Search

25. Type Ahead Searching

26. Tagged Objects Show Actionable Information

27. Modal Search Windows

28. Related Content: Threaded Discussions

29. Related Content: Analytics in Context

30. Deploy New Capabilities at a Low Cost PeopleTools Backwards Compatibility PeopleTools 8.46 Q1 2005 GA PeopleTools 8.47 Q4 2005 GA PeopleTools 8.48 Q3 2006 GA PeopleTools 8.49 Q2 2007 GA PeopleTools 8.50 Target GA, 2009 Applications Release 8.4 Applications Release 8.8 Applications Release 8.9 Applications Release 9.0 Applications Release 9.1 Total Ownership Experience Fusion Middleware Certification Service Oriented Architecture Platform Compliance Continuous Innovation Delivering Upgrade Flexibility and Planning Options

31. Execute End-to-End Business Processes Period-End Close and Monitor Plan Transform Record Close Analyze Focus Resources on Business Growth Initiatives Measure Business Driven Collaboration

32. Receive & Reconcile Review / Approve Source & Contract Create & Route PO Pay Supplier Achieve Sustained Cost Control SRM Enhancements Requisitioning Planned for 9.1 Improved Contract Defaulting Controls Greater Usage of XML Publisher SOA Integrations Planned for 9.1 Improved PO Management Enhancements to Return-to- Vendor Processing Planned for 9.1 Expanded Integration of Approval Workflow Supplier Side Contract Integration Complex Work Time Reporting in Services Procurement Planned for 9.1 Event Notification Integration and Enhanced Supplier Selection PO Sourcing Enhancements Contract Authoring Integration with PO Planned for 9.1 Automated and Configurable Requisition Change Processing Additional Onboarding Controls Planned for 9.1 Track Vendor Name Changes Dynamic Discounting

33. Contract Transaction Contract Document Notifications, Inquiries, & Renewal Approve Contract Purchase Order Releases Enforce Negotiated Terms and Operational Compliance Efficiently Execute Supplier Contracts Integrated Contract Lifecycle Management Purchase Orders Buyer Supplier Contract Admin Finance Legal

34. Delivery Update on PeopleSoft 9.1 Release Progression Identify and Define Requirements Create Release Plan Design Code Test Requirements From: User Groups Direct from Customers PeopleSoft Customer Advisory Boards PeopleSoft Strategy Councils Industry & Global Product Strategy Support Market Factors Deliver In Progress 2008 2009 Planned Release Timeline PeopleSoft Release 9.1 and PeopleTools 8.50 Target Rollout

35. Working with Customers to Deliver Value Customer Interactions for PeopleSoft SCM/SRM 9.1 73Customer Site Visits / Remote Meetings: 73 42Oracle Corporate Visit Center Meetings: 42 33User Group Meetings: 33 30Focus Group Meetings: 30 8Customer Advisory Board Meetings: 8

36. Future Upgrade Options Planned Upgrade Options for PeopleSoft 9.1 Release Automated, One-Step Upgrades 9.0 8.9 8.8* Upgrade Scripts Available on Customer Connection After GA < 8.8 Next Release Multi-Step Technical Upgrades 9.1 *With Extended Support

37. PeopleSoft Investment Strategy Summary Drive User Productivity with… Web 2.0 PeopleSoft User Experience Enabling Native Work Environments Collaboration Tools Deliver Complete Solutions with… Functionally Deep Applications End-to-End Business Processes Industry Tailored Solutions Enable IT to Impact the Business with… Low Cost Capability Deployment SOA Enabled, Sustainable Integrations Reduced Cost of Maintaining Applications BusinessOwners EndUsers ITManagers Enable organizational success by addressing the unique needs of different constituents

38. A Q &

39. COPYRIGHT