Oracle Global Trade Management

2. Oracle Global Trade Management Rosalie Cmelak & Erin Johansson GTM Product Strategy

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.

4. Program Agenda <Insert Picture Here> • What is Global Trade Management? • GTM Drivers • Oracle GTM Solutions & Benefits • Landed Cost Management Demonstration • Summary & Questions

5. Speaker Introductions • Rosalie Cmelak—GTM Product Strategy, Oracle • Erin Johansson—LCM Product Strategy, Oracle • Chandra Yeleshwarapu—EBS Development, Oracle

6. What is Global Trade Management? • Processes involved to move Goods, Information, and Money across borders and parties • Starts with Purchase Order, Sales Order (or other) • Functional Groups: Purchasing, Sales, Compliance, Operations, Finance, and Logistics • External Parties: Vendors, Customers, Banks, Logistics Service Providers (LSPs), Freight Forwarders, Customs Brokers, Government Agencies • 600+ Laws and Regulations • 25 entities and 35 documents in a TYPICAL transaction

7. Financial Settlement Procurement Compliance Transport Key Trends Driving Global Trade • Trade Finance • Manage Letters of Credit • Open Accounts • Optimize flow of funds • Supply Chain Security • Comply with existing and future security programs • Mitigate risk • Global Sourcing • Lower unit costs • Increase profitability • Compete effectively • Customer Demands • Quickly access new markets • Customer satisfaction • Visibility • Regulatory Compliance • Increased variability and risk • Quickly access new markets

8. Today’s Global Trade Requirements • Global Approach • Manage global compliance programs • Global product classification database • Multi-country support for controls, licenses, exceptions • Sourcing & Supply Chain Design • Assist in sourcing decisions (FTA, etc.) • Landed cost • Trade related item management • Multi-party collaboration • Centralized item information accessible by internal and external trading partners • Process & system integration • Integration with government systems • Compliance • Import/Export Auditing functions • Security programs • Flexibility • Quickly respond to new business models • Immediate integration with new acquisitions • Real-time update to regulatory changes

9. Why Companies Deploy GTM SolutionsEstablish Best Practices & Drive Continuous Improvement • Accelerate the supply chain • Enhance customer satisfaction • Improve import/export regulation compliance • Increase profit and decrease cost of goods • Reduce inventory – better shipment visibility for company and supply chain partners • Respond quickly to change – innovation

10. <Insert Picture Here> Oracle GTM Product Strategy

11. Oracle’s Investment in GTM • GTM Market opportunity • Customer demand • GTM is Supply Chain component of Governance, Risk and Compliance initiative for Oracle • Technology advantages Oracle in unique position to deliver differentiated business value to customers

12. GTM: Innovation in Oracle Applications • Part of Supply Chain applications division • Orchestration of all cross-border trade business processes across Oracle and non-Oracle applications • GTM focus is on key Oracle industries: • High Tech • Industrial Manufacturing • Logistics Service Providers • Retail

13. GTM v1 Product Strategy • Compete & Differentiate • Integrated Landed Cost Management • Global Trade Content • Native integration with Transportation Management • Deliver comprehensive Trade Compliance solution • Solicit early customer support • GTM Strategy Council • Strategic Implementation Partners

14. Global Trade Management At-a-Glance • Party Screening Lists • Harmonized System Codes • Country Tariff & Duties • Trade Agreements Trade Content TradeFinance Trade Compliance Trade Compliance • Denied Party Screening • Global Exports • Global Imports • Customs • Letters of Credit • Financial Integrations • Document Sharing • Charge Mgmt and Allocations • Estimated & Actual Calculations • Trade Documents • ERP Mappings for Trade Docs Landed Cost

15. CustomersSuppliers FreightForwarders Customs Brokers Carriers Banks Oracle Global Trade Management Operations/Logistics Corp IT Engineering Tax/Legal Compliance SERVICES FOUNDATION Trade Party Master Trade Item Master Jurisdiction Management Trade Policy Management Product Classification Compliance Screening Control Determination Landed Cost Management Oracle Global Trade Management Integration Layer Trading Partners Trade Content Applications ClassificationCodes, Rulings & Explanatory Notes Restricted Party & SDLLists Rules of Origin DutyRates ERP & Master Data Management SCM/TMS Legacy CRM

16. Global Export Process Party Creation Ship Goods Sales Order Creation Export Declaration Typical GTM Services: Product Classification License Management Compliance Screening Export Documents Export Declaration Global Export Process Flow Party Screening Tender to Carrier Export Controls Screening Create Export Documents LicenseDetermination Pick/Pack

17. Global Import Process ClassifyProducts Calculate ALC CreatePO ReceiveGoods Typical GTM Services: Product Classification License Management Compliance Screening Landed Cost Management Customs Filing Data & Document Collaboration Party Screening CustomsEntry Filing& Clearance Global Export Process Flow Control Determination Create Import Documents Calculate ELC Buyer & BrokerReceive ASN SellerGets PO Ship Goods

18. E-BUSINESS SUITE Oracle GTM Development Roadmap Version1 (CY09) Version2 (CY10) Future • Trade Finance Framework • Extend Foundation • Promotional Schemes • Strategic Sourcing (Landed Cost Simulator) • Extend Foundation • Drawback/Re-Export • Bonded Warehouse • Free Trade Zones (Manufacturing) • Standalone LCM • Outbound Landed Cost • GTM Foundation • Trade Compliance Management • Landed Cost Management (12.1) • Global Trade Content Native Trade & Transportation Platform Build GTM Foundation Recruit Early Adopters Partnerships Extend Foundation Grow Customer Base Theme Extend Integrations Trade Finance Strategic Sourcing Verticals High TechIndustrial Mfg Retail & DistributionLogistics Service Providers

19. High Tech Arrow Electronics Brocade Dell Huawei LG Electronics Sanmina Seagate Industrial Manufacturing Beckman Coulter Cummins Eaton Emerson NCR Logistics Service Providers Agility Logistics DHL/Exel Italsempione Schneider National Toll Group UTi Retail & Distribution Amway (Alticor) Lowes Office Depot Starbucks Tesco GTM Strategy Council Roster

20. <Insert Picture Here> Oracle Landed Cost Management

21. <Insert Picture Here> John Fontanella AMR Research “Landed costs, and how they affect the per unit price of goods, can often make or break the profitability of an entire shipment.” -”The Quiet Revolution”, American Shipper—Oct. 2007

22. What is Landed Cost Management?Business Context • International Trade Promises: • New revenue opportunities • Reduced production costs • International Trade Realities: • Profitability.Is my product truly profitable? Are my expenses attributed to the product that incurred them? Are my products priced appropriately? Have I budgeted correctly for a particular product group? • Financial Visibility.What is my outstanding exposure including all of the extended supply chain costs? Are my financial reports accurate? • Competitiveness.Is the company sourcing strategically? Do I understand all the costs associated with sourcing from a particular country? Can I negotiate better contracts with suppliers and/or customers? • Compliance.How am I meeting strict regulations pertaining to item cost in countries such as Brazil and India?

23. What is Landed Cost Management?Inbound Shipment China Factory Shipment to HK HK Port Vessel Carrier US Port Kansas City Customer $100 $2 $4 $20 $5 $2 $2 =$133

24. Market & Sell Plan & Budget • Better contract negotiations • Additional revenue opportunities • Optimized fulfillment networks • Better pricing models • More accurate product profitability reporting • Benefits of Oracle LCM: • Maximize Profits • Increase Competitiveness • ImproveFinancial Visibility into Supply Chain • Enhance Financial Reporting Confidence and Compliance Sourcing Payment Acquisition • More accurate total cost comparisons • Better contract negotiations • Linked invoices with supply chain event • Authenticated cost declarations • More accurate record of outstanding liabilities • Regulation compliance Oracle Landed Cost ManagementKey Benefits within the Operational Lifecycle

25. Oracle LCM Roadmap E-BUSINESS SUITE Phase2 Phase1 – R12.1 Future • Charge Management • Landed Cost Engine • Adjustment Management • Integration with EBS Receiving, Costing, and Payables • Extend Integration • PO Estimation • Cost Methods • OPM Costing • Enhanced OTM Integration • Analytics • Outbound Shipments • Strategic Sourcing • Analytics LCM for EBS LCM standalone Theme • Inbound Calculation & Automation • Based on Brazil Localization • Core Product - EBS • First Global Trade Management Application Planned

26. Receive Goods Create PO Ship Goods Receipts - Estimated Landed Cost Supplier /Carrier ReceivingClerk Buyer User Actions Load Estimated charges LCM Calculate Estimated Landed Cost Automated Actions Accrue Receipts Costing LC Adjustment Transactions

27. Invoice - Actual Landed Cost Supplier /Carrier Payables Clerk Carrier Invoice Initiate Adjustment Process Make Payment Enter Invoices $ User Actions Item Invoice Calculate Actual Landed Cost LCM Est. / Actual Landed Cost Automated Actions Variance Cost/ Accrual Adjustment Costing Create Freight and/or Item Invoice Payables

28. Purchasing Payables PO Information Invoices OTM Freight Information Landed Cost Management Charge Mgt. Actual Variances EB Tax VAT Calculation Duty Estimated Landed Cost ASN LC Calculator Product Cost Dashboard Advanced Pricing Charges Receiving Costing Estimated Landed Cost Product Map & Information FlowEBusiness Suite

29. <Insert Picture Here> DemoOracle Landed Cost Management

30. Q & A