Metals SIG Presentation

1. Metals SIG Presentation March 8, 2011 Doug Souza

2. Safe Harbor Statement 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 decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

3. Today’s Challenges… • Consolidation • Maximize revenue • Reduce costs • Improve customer service • Improve on-time delivery / Delivery performance to customers • Reduce delivery lead times • Increase productivity • Reduce inventory costs • Increased efficiency in supplier relationships • Optimized product mix • As the metal consuming sectors continue to reel under recessionary pressure, metal companies have been cutting costs by destocking, reducing capital expenditure, renegotiating long-term contracts and negotiating price concessions from raw material suppliers and vendors • Global Outlook for Metals - KPMG

4. Agenda <Insert Picture Here> • Oracle Fusion and SCM Strategy • Fusion SCM Applications • Distributed Order Orchestration • Global Order Promising • Inventory, Shipping, and Receiving • Costing, Receipt Accounting • Product Master Data Management • Customer Involvement • Fusion SCM Adoption and Coexistence

5. Current Releases Fusion ApplicationsStrategic Approach Fusion Edition Apps Applications Built on Standard Middleware Oracle Fusion Middleware Complete and Integrated Middleware Suite to Enable SOA Oracle Confidential – covered under NDA

6. The Making of Fusion Applications Started with a Modern Platform Industry-leading, standards-based, configurable, adaptive and secure Fusion Middleware Built Best Practice Business Processes Based On Hundreds of Years of Learning E-Business Suite, PeopleSoft, JD Edwards, Siebel Reinvented the User Experience Role-based user interface, embedded decision support, pervasive collaboration Made Ready for the Cloud Private or public cloud All in Collaboration with Oracle’s Customers and Partners

7. Oracle Fusion Applications v1.0 Family Overviews Oracle Fusion Human Capital Management Oracle FusionFinancial Management Oracle FusionSupply Chain Management Product Master Data Management Distributed Order Orchestration General Ledger Accounts Payable Global Order Promising Asset Management Global Human Resources Workforce Management Benefits Inventory Management Payments & Collections Cost Management Shipping & Receiving Accounts Receivable Cash & Expense Management Compensation Management Talent Review Performance& Goal Mgmt Common Modules KPIs, Dashboards,& Extensibility FW KPIs, Dashboards,& Extensibility FW GlobalPayroll Network @ Work KPIs,Dashboards, &Extensibility FW Oracle FusionProject Portfolio Management Oracle FusionSales & Marketing Oracle FusionProcurement Project Costing ProjectBilling Project Performance Reporting Customer Master Sales Marketing Sourcing Purchasing Self-service Procurement Project Contracts IncentiveCompensation Mobile & Outlook Integration Territory & Quota Mgmt Project Control Project Integration Gateway Procurement Contracts Supplier Portal Spend & Performance Analysis KPIs, Dashboards,& Extensibility FW KPIs, Dashboards,& Extensibility FW KPIs, Dashboards,& Extensibility FW Oracle FusionGRC Issue & Risk Manager Financial Compliance Access Controls Transaction Controls Configuration Controls KPIs,Dashboards, &Extensibility FW

8. Oracle Supply Chain ManagementBest-in-Class Integrated Applications Information-Driven Value Chain Fusion Middleware Supply Demand Real-Time Information Product AIA • Predict Market Requirements • Adapt To Dynamic Environment • Innovate Products & Processes • Align Across Value Chain • SustainablePractices

9. Agile Customer Needs Mgmt v1.x • Systems engineering enhancement • Integration to CRM for idea capture Oracle SCM Roadmap…and some content highlights • Oracle Transportation Management 6.x • BI for fleet management and sourcing • Sustainability based mode & carrier selection • Transportation capacity forecasting • Value Chain Planning 12.1.3 • Risk and service mgmt .dashboards • Demand Signal Repository 2.0 • Production Scheduling for cMRO • Oracle Manufacturing Operations Center • Sustainability Sensor Data Management • Oracle Transportation Management 6.2 • Expanded small parcel & Rail support • Geographic Map user interface • LTL support in Transportation Sourcing • Oracle Global Trade Management 6.x • International Traffic in Arms Regulations (ITAR) • Electronic document generation and filing • Global import processes • Oracle Product and Serialization Manager • Issue, track and manage serialized products in the pharma industries • Oracle Global Trade Management 6.2 • E-Business Suite Integration • Classification roll-up for ATO items • Restricted party match resolution • Warehouse Management R12.1.3 • Logistics Service Provider Support • Warehouse Services Billing • Agile PLM for Process 6.x • Enhanced Product Quality & Scheduling • Trade spec and supplier collaboration • AIA Integration to OPM and PIM (AIA 3.1) • VCP – Rapid Planning 12.1.3.1 • Demand pull-in processing • Routing & supplier capacity simulation • ALM 12.1.3 • Safety and Permit Management • ESRI Map Integration • Encumbrance Accounting for Direct PO’s • Agile PLM 9.3.x, Agile BI 3.x • PLM for Pharma enhancements • General PLM and PLM BI enhancements • VCP – Service Parts Planning 12.1.3.2 • Fair share allocation • Integration with Oracle Contracts • Field Replaceable Unit (repair) BOMs • Agile PLM 9.3.1 • Next Generation CAD connectors • Complex document publishing • Customized attribute views & productivity • Advanced Scheduling & Resource mgmt • Value Chain Planning 12.x • Cost modeling and scenarios modeling for S&OP • Agile BI 3.3 • NPD analytics for Food & Beverage • Enhancements to PLM BI • Manufacturing 12.x • E-Kanban • OPM Support for Contract Mfg • Agile PLM for Pharma (released with 9.3.1) • Material & Equipment Mgmt; Recipe Mgmt • Clinical supply management • Drug development record & QbD • AutoVue 20.1.0 • Hotspots for 2D CAD • Electronics & High Tech ER’s • WMS 12.x • Dispatched & Interleaved Putaway Tasks Oracle Fusion 1.0

10. Oracle Fusion Supply Chain ManagementProduct Strategy Vision • Support business transformation and optimization within the context of a global, multi-enterprise and information-driven value chain • For Fusion SCM V1: • Create initial SCM foundation to support other Fusion V1 Applications: • Broad set of foundational objects and services • Next generation solutions for Orders, Items, Inventory, Costing, Shipping & Receiving • Create complementary next generation SCM applications targeted at transformational challenges: • Support multi-enterprise and heterogeneous systems (Fusion, Oracle, Legacy) • Maintain a modular deployment capability • Subsequent investments: • Expand into further releases of Fusion Applications: • Integration and cross-leverage between existing SCM products and Fusion • Additional new complementary Fusion SCM applications • New releases of existing SCM products, developed as Fusion modules • Continuously maintain a focus on: • Continuity, protection of investment and coexistence • Transformational SCM challenges • Multi-enterprise, heterogeneous and modular deployment

11. Oracle Fusion Supply Chain ManagementFusion V1 Product Overview Complementary to a broad range of existing and new customers Supporting Financial & Procurement Processes Product Master Data Management Global Order Promising Distributed Order Orchestration Inventory Management Cost Management Core SCM Model and Framework • Data Model & Services • Business Processes • Analytics and Calculations • Integration Services • Functional Setup & Admin • Data Model Extensibility

12. Fusion Distributed Order Orchestration and Global Order Promising

13. Changing Order Fulfillment Business NeedsNeed for a New Approach More Complexity, Faster Changes, Failing Systems • 49% of customers use multiple ordering channels • 61% companies sell through indirect channels • 32% of companies sell/plan to sell partner products or services • Average of 5.1 order capture and 4.3 fulfillment applications per company • 60% have limited or no integration • 50% have limited or no data standardization • 40% of companies outsource a large part of fulfillment • 43% of companies make an acquisition each year Resulting Challenges • Order accuracy is below 85% • Delays in new product introductions • Falling customer satisfaction • Order cycle time up from 1 to 3 days • Increasing customer service complexity • Inventories have increased 15% • Fulfillment now accounts for 50% of supply chain Requires a new architecture that natively supports multi-system, rules-based fulfillment orchestration

14. New Architecture for New Fulfillment ParadigmCapture, Manage, Orchestrate, Fulfill E-Business OM & iStore Siebel Order Capture Legacy/SAP Order Capture Electronic Data Interchange Partner Portal Capture Web Services GOP Distributed Order Orchestration Orchestrate Manage Availability Decompose Order Orchestrate Fulfillment Transform Transactions Manage Visibility Manage Exceptions Web Services ERP or Legacy Fulfillment LSP or 3rd Party WMS Fusion Fulfillment Asset Mgt / Field Service Network Provisioning Fulfill

15. DISCLAIMER THE FOLLOWING IS NOT REAL ANY RESEMBLANCE TO REAL COMPANIES OR REAL SITUATIONS ARE PURELY COINCIDENTAL

16. Demo FlowVision Operations Buys APEX Products Select Products & Check Availability Submit Order Status Tracking Order Orchestration Work Area Global Product Availability Orchestrate Order Decompose Order View Exceptions and Fix with Workbench Action View Exceptions and Fix with Available Options Send to Fulfillment & Track Status Complete Fulfillment Process Create Pick Wave Ship Confirm Data Collection / Cost Accounting Gross Margin Analysis Create New Item Data Quality Check

17. Distributed Order Processing andGlobal Order Promising • Meta-data driven order orchestration • Business user friendly process definition UI • Template based BPEL process generation • Jeopardy planning enabled against orchestration process • Change order logic enabled with rules to define compensation and rollback points • Centralized monitoring and exception handling • Integration layer to decouple process definition from specific target fulfillment systems • Memory based order promising engine • Supports global supply chain visibility • Order promising simulation

18. Fusion Inventory, Shipping, and Receiving

19. Logistics in Fusion V1.0 • Work Areas that aggregate transactions • Total view on inbound/outbound shipments to give a complete view • On-hand and Inventory movements oriented by location or product • Inventory accuracy tasks/data • SOA-based architecture • Detached financial transaction from material movements • No longer need source documents (order, PO) tied to receipts, shipments, etc. Can execute warehouse transactions on behalf of another party • Action-oriented UIs that present related context: • Open tasks presented to agents • Full functionality with embedded analytics • Inventory Control • Receiving • Shipping

20. Fusion Cost Management

21. Fusion Costing V1.0 • Costs • User defined granularity: Sub-Inv, Locator, Lot, Serial and Grade level cost • Track costs and internal profits through the supply chain • Costs in primary and secondary UOM • Shared item cost across Inventory Organizations • Multiple representation • To support multiple reporting standards like GAAP, IAS etc • Cost simulations • Better Reference data management • Set ID to share cost setups across Cost Organizations • Defaulting rules to ease costing setup • Process management • Configurable period close management • Business rules (OBR) based automatic accruals clearing • Dashboards to manage errors and exceptions

22. Fusion Product Master Data Management

23. Foundation for Rapid InnovationConsolidate,Cleanse,Enrich,Govern,Harmonize Product Model Govern Data Pools EBS Print Catalogs Siebel Partners Share PLM/PDM Web Services Consolidate Web Services Custom Apps Legacy Supplier Catalogs BI Cleanse

24. Product Data Management • Single extensible product model • Capture front-end and back-office product definitions • Pervasive, real-time and batch data quality functions built for data stewards • Integrated import workbench • Configurable governance processes • Streamlined product orchestration and approval • Granular version management and incremental release capabilities • Spreadsheet user interfaces • Integrated dashboard and work area for product managers / data stewards • Common search and compare services

25. Fusion Customer Involvement

26. Thorough Customer Feedback Process Specific design partners in each product family and module Global Advisory Board, with periodic validation and feedback events Designed to not interfere with current applications sales cycles Functional Validation Program 350 validation events, involving 360+ companies, 20 industries High-Technology: 112; Financial Services: 66; Communications: 43 Healthcare & Pharmaceuticals: 39; Retailing: 28; Others: 64 86 specifically validating SCM features Global Functional Validation Program Over 70 customers were multinational North America: 172; Europe: 37; Asia-Pacific: 10; Latin America: 5 Coordinated with User Groups and Against Competitors Significant user experience event at Collaborate (400+ Users) Specific competitive assessments vs. salesforce.com, Workday, others Fusion Applications Customer Feedback and Validation Process

27. Oracle Fusion Supply Chain Management Sample Design Partners

28. Customer Validation Feedback Distributed Order Orchestration • DOO will assist our customers in making some of the complexity regarding integration and orchestration much simpler • Oracle Manufacturing Customer • The whole DOO process … shows a real open minded approach to all of the requests for flexibility • Oracle Manufacturing Customer • (DOO is a) one -shop for the status of an order and the options available to address any issues • Senior Manger, Consulting Co. Product Data Hub • The search capability is very solid … UI is clear and concise and provides the necessary functionality. • Product Manager, Supply Chain Customer • Search capability on structures really adds value … Ability to view item changes provides a way to look at all changes in one screen • PIM Architect, Manufacturing Customer • The regional keyword search is really easy to use … the templates functionality at the item class is a great improvement. • Product Manager, Consumer Products Customer Inventory • Overall the UI / work center was excellent. • Oracle Manufacturing Customer • It is much easier and intuitive • Oracle Manufacturing Customer • The process is intuitive and easy to manage. • Oracle Manufacturing Customer Costing • Negative material overhead rates can also be defined - very good! • Oracle Manufacturing Customer • We very much like the Search Results page that shows the run status, error types and record counts • Corporate Accounting Director – Oracle Customer

29. Other Customers and Partners Quotes Overheard During Testing … “Oracle did it right this time!” • “The quality we are seeing this early in the development process is impressive. Should we expect to see our support costs reduced or eliminated?” • “Who knew Oracle could be so user-centric?" “I was pleased to see that Oracle has implemented many of our ideas and recommendations. Do we get a rebate?!”

30. FusionProduct Adoption

31. Now that Fusion Applications are in the mix, what should be my next step ? On Premise? Cloud Computing? Extended Support? Upgrade? Early Adopter? Fusion 1.0?

32. Recommended ActionsUpgrade, Adopt, Extend Upgrade to Latest Release Adopt Standards-Based Technology Extend Business Value with Fusion Applications Oracle SOA Suite and AIA Fusion Apps Suite E-Business Suite 12.1 CRM On Demand 18 Oracle OBIEE JD Edwards E1 9.0 VCP 12.1 Demantra 7.3 Oracle ADF, WebCenter Oracle Identity Mgmt Fusion Family Oracle Content Management Oracle Enterprise Mgr JD Edwards World A9.2 OTM 6.1 WMS 12.1 Fusion Module PeopleSoft Enterprise 9.1 Agile PLM 9.3 Siebel CRM 8.2 Agile PLM for Process 6

33. Financial Management Complete ChoiceCoexistence Strategy Protects Your Investment Procurement E-Business Suite PeopleSoft JD Edwards Fusion Apps Hyperion Governance, Risk & Compliance Fusion Accounting Hub Project Portfolio Management Human Capital Management Fusion Shared-Service Procurement Spend Analytics Supply Chain Management Primavera CRM Fusion Talent Management Fusion Incentive Compensation Fusion Distributed Order Orch. Product Lifecycle Management Transportation & Warehouse Management Value Chain Planning Fusion Product Hub Fusion Customer Hub Siebel CRM CRM On Demand Fusion Sales Planning Fusion Incentive Comp Fusion Talent Mgmt

34. Questions & Answers