Oracle in the Consumer Packaged Goods Industry

1. Oracle in the Consumer Packaged Goods Industry Phil Friedman Vice-president CPG & Process Industries .

2. Industry Dynamics • Manufacturers see cutting trade spending as a key opportunity to increase bottom line profitability • Retailers demand that manufacturers collaborate to plan, forecast, and manage inventory to ensure right product, right time, right place right cost. • Retailers and Manufacturers agree on the need to adapt and adopt data and process standards • Consumers demand and the FDA is enforcing food quality and safety regulations

3. Catalogue Manager Pricing / Trade Engine UCCNet The New Consumer Goods Value ChainIngredients/Material to Consumer Supply Base Raw Materials Supplier- Prepackaged / sub-contactor Materials Production Distributor / Broker Regulatory Compliance Packaging Mfg Consumer Goods Manufacturers Production VMI Retailers Retail Club’s Warehouse Package & Ship Distribution& Retail RFID Tag Consumer Loyalty Program Intelligence SBT

4. What are CPG Executives Looking For • Meet all the needs of compliance • Sarbanes-Oxley’s impact from Trade Management • Quality and safety regulations • Big-box Supply Chain • Standards • Lower Cost of Ownership • Reduces need to grow IT organizations • Reduces complexity of management • Reduces the number of skill sets required • Eliminates support for integration • Single point of accountability and vendor management • Drive to single version of the truth • Single data source for customer and item masters • Easier to implement data quality • Aligns access of information with the velocity of the business • Partner with a company willing to make investments • Support R&D drive solutions not research .

5. Compliance Out of the Box What is Oracle doing to meet the Needs and Challenges .

6. Compliance Out of the Box An integrated out of the box application and technology solution built with CPG specific business flows that enable mid-tier CPG companies meet the requirements from large retailers (I.e. Wal*Mart) encompassing: • RFID Compliance • Item Synchronization Management • Food Safety and Tracability • Single Source Customer Management • Trade Promotions and Settlement Management • Partner Collaboration • Operational and planning Analytics .

7. The Top CPG Opportunities for Driving Shareholder Value • Regulatory Compliance • Driving business effectiveness by managing through a single version of the truth • Collaboration – UCCNet a partner to achieving supply chain excellence • RFID – When and what • Promotion management – Sarbanes-Oxley

8. The Administration and Legislators Know That Their Constituents are Scared and Right to be SoWhat are are your consumers saying… • Is my product safe? • Can I trust the manufacturers? • What is my Government doing? • Congress – More rules, less effectiveness, more costsBUT !!! • FDA and others – Can they really be the enforcement agency here??? I think I’m confident but I’m not sure

9. Issues Solutions Capabilities • Full life cycle tracking and work flow--aligned with process steps • Tight alignment and integration with employee information • Work flow and reporting engine that has been verified as FDA compliant • Information driven reporting • Tracability – Do I know the original source and destination • Accountability – Can I identify the individuals who make decisions and take action • Auditability – Can I retrieve and report on process information • Responsiveness – Can I handle issues in a timely manner What the FDA and other Regulators Will Be Looking For

10. Lot Source Where Used Oracle’s Enabling SolutionAuditability, Traceability, Accountability • Improve Recall Responsiveness / Cost • Comply with FDA GxP and Safety Regulations • Trace Materials Enterprise-Wide to Analyze Vendor Quality Intermediate or Bulk Products Finished Product Ingredients& Resources Supplier Customers

11. The Top CPG Opportunities for Driving Shareholder Value • Regulatory Compliance • Driving business effectiveness by managing through a single version of the truth • Collaboration – UCCNet a partner to achieving supply chain excellence • RFID – When and what • Promotion management – Sarbanes-Oxley

12. Sales Advanced Pricing Configurator Global ATP Incentive Comp. Contracts Sales / Services Lease / Rights Property Mgmt. Marketing Trade Mgmt. Strategic Enterprise Mgmt. Balance Scorecards Activity Based Costing Activity Based Mgmt.Value Based Mgmt. Procurement Exchange Global Customers, Products, Business Intelligence & Everything Else! Projects Product Design Life Cycle Mgmt. Partners Manufacturing Advanced Planning Finance GL / AR / AP / Assets Collections / Payments HR Services Support Field Service Depot Repair Fulfillment Warehouse Transportation Architecture to Drive a Single Version of the Truth

13. The Top CPG Opportunities for Driving Shareholder Value • Regulatory Compliance • Driving business effectiveness by managing through a single version of the truth • Collaboration – Item Synchronization and underlying standards- a partner to achieving supply chain excellence • RFID – When and what • Promotion management – Sarbanes-Oxley

14. The UCCnet RoleSynchronize Supplier/Retailer Product Definitions UCCnet • Receive product information • Confirmation messages • Send product information • Confirmation messages Retailer’s System (Demand Side) Supplier’s System (Supply Side)

15. Develop Maintain Market Service Plan Transportation Global Product & Component Catalog InventoryOptimization Sell Procure Warehouse Fulfill Manufacture Automation Collaboration Intelligence Advanced Product CatalogBased on the Oracle Item Master • Enables... • Component Reuse • Secure Collaboration with Customers & Suppliers • Full Global Operation... • 30 Languages • All Currencies • All Localizations • Leverages Oracle Database... • Text & Parametric Search with Text & Partitioned Index Technology • Scalability & Performance • ...in a Single Global Instance

16. UCCnet Attributes Modeled Here ERP Operational Attributes Flex-Field Attributes User-Defined Attributes Item 1 Item 2 Item 3 Item N Specific Attribute Values Specific Attribute Values Specific Attribute Values Specific Attribute Values Specific Attribute Values Specific Attribute Values Specific Attribute Values Specific Attribute Values Specific Attribute Values Specific Attribute Values Specific Attribute Values Specific Attribute Values Base Oracle Application attributes for inventory, planning, distribution, sales, etc…. Traditional method of extending Oracle Application attributes New method of extending Oracle Application attributes Based on an Established FoundationAnatomy of Oracle Item Master Category = Canned Beverage

17. Basic Info Item Information Provider, Brand GLN, Brand Owner Name, Data Pool Name, Brand Name, Short Description, Additional Trade Item Description, Trade Item Unit, UPC Code Type, UPC Code, Public/Private Measurement Number of Item Contained By parent Item, Gross Weight, Gross Weight UOM, Height, Height UOM, Width, Width UOM, Depth, Depth UOM, Volume, Volume UOM, Number of Trade Item Contained in the package, Net Weight, Net Weight UOM Size Size Code List Agency, Size Code Value, Size Description Dates Fist Order Date, First Ship Date, First Arrival Date, Last Order Date, Last Ship Date, Last Arrival Date Dimensions Size, Size UOM, Height, Width, Length, Linear UOM, … … Item per Pallet, Layers per Pallet, No of Inner Containers… … Order Increments Order Increment, Order Increment UOM Miscellaneous Information Color, POS Description, Days to Expiration… … Purchasable, Orderable, Min Order Quantity, Max Order Quantity Oracle Advanced Product CatalogSeeded UCCnet Attribute Groups

18. The Top CPG Opportunities for Driving Shareholder Value • Regulatory Compliance • Driving business effectiveness by managing through a single version of the truth • Collaboration – UCCNet a partner to achieving supply chain excellence • RFID – When and what • Promotion management – Sarbanes-Oxley

19. High inventory accuracy Disciplined processes Good logistics systems Optimized for case/pallet Early in Supply Chain No In-store Inventory visibility Reactive processes Poor In-Store discipline Needs SKU/Shelf info for value Late in Supply Chain Manufacturer / Retailer SchismA Tale of Two Worlds Manufacturer Retailer RFID – another cost of doing business RFID - a way to increase profits • Acceptance now, but pushback will increase as costs mount • Retailers must generate value through shared information • E.g. Pull Planning, Reduced Chargebacks, Promotion Effectiveness, … • Manufacturers can differentiate by creating strategic relationships

20. Table stakes Deliver a robust, hardware agnostic RFIDplatform which elevates the application development interface to standard technologyand the processing of true business events ApplicationServer Leverage data base extensibility, scalabilityand event management capabilities to supportthe data and transaction volumes associatedwith this technology Data Baseand Tools Leverage the above technology to deliverfunctionality with realistic ROI and to createplatform for future expansion Applications RFID StrategyMaximize RFID ROI through Top-to-Bottom Integration Value point

21. Stream Data Minimized & Normalized Oracle Application Server 10gRFID Events and Edge Processing Handheld Scanner / Reader (with Driver) Naming / PMLServices OperationalData Distribution Backend Applications Filtering & Device Integration Fixed Sensors(e.g. RFID) Lightstack,Message Boards,or Notification Devices (e.g. SMS, Pager)

22. RFIDPlanned for 11i.10 Interface to readers, clean & filter data, then pass ID's to application RFID Middleware Drive load through RFID Reader in Shipping Dock Access objects associated with the ID's (e.g. LPN's on Delivery), then raise correct Business Event based on Rules Load of pallets and/or cartons with RFID Tags for each LPN RFID Event Processor Process the Business Event (e.g. LPN Ship) Picked & Staged Material for Delivery Application API's Response & Exception Handling Confirm success or failure (e.g. trigger green light or sound buzzer) Load Delivery, rescan or divert material Oracle Confidential This presentation does not reflect a commitment to deliver. Product directions can be modified without explicit notice.

23. The Top CPG Opportunities for Driving Shareholder Value • Regulatory Compliance • Driving business effectiveness by managing through a single version of the truth • Collaboration – UCCNet a partner to achieving supply chain excellence • RFID – When and what • Promotion management – Sarbanes-Oxley

24. The Impact of RegulationIt is a mistake to ignore FASB and Sarbanes-Oxley It has been a tough year… • Royal Ahold is decimated by SEC Investigations on Promotion Allowances: • $500 million had to be restated due to new FASB changes • CEO and CFO resigned, now face criminal charges • SEC found irregularities in Promotion Allowance accounting • Entire board forced to resign • Fleming forced to take $645 million charge • Now bankrupt • Stock formerly trading at $20 now at 14¢! • SEC sends notice to General Mills of “review” intentions • Forerunner to formal investigation? • SEC sends “notices” to Frito-Lay, Dean Foods and Kraft • In connection with Fleming relationships …and it promises to be just the start!

25. A Hard Priceto Pay! • Royal Ahold reports a 2002 loss of $4.8 Billion! • Rite Aid faces accounting fraud charges of nearly $1 Billion! • Bristol-Myers/Squibb’s FASB revenue reversals were nearly $1.4 Billion in 2002 Hits (to profit and ethics) Just Keep On Coming! “The FBI is opening three to five investigations a month of suspected fraud of $100 million or more by executives at publicly traded companies, a pace that indicates the scandals that have rocked corporate America for the past 18 months show no signs of abating.” [Boston Globe 5/6/03]

26. Claims Management Budget Management Single View of Customers & Products Indirect Sales Data Trade Planning Oracle Trade Management Solution Customers • Control Financial Risks • Increase Efficiency • Enable • Collaboration • Lower Cost • Increase Sales • Increase ROI Supply Chain Marketing Finance Sales Products Trade Management Promotions Claims • GL • Inventory • Order Management • Advanced Pricing • AR • AP • Marketing • PRM

27. Mission Statement: To be the global leader as the premier provider of fully integrated ebusiness technology, applications and analytic solutions to enable demand driven, business process efficiency and effectiveness for the Consumer Products industry. and… To be acknowledged as a trusted business solution partner to our clients in the industry.

28. Oracle’s Commitment to The Consumer Industry • Top down leadership commitment to CPG • Investment in people and product • 1,300 Developers focusing on key capabilities • Compliance with Retailers - UCCnet, RFID, OM, APS,WMS • Compliance with Sarbanes Oxley – TM • Compliance with FDA – Poecess Manufacturing • Deep industry domain knowledge experts • Industry thought leadership • Extensive experiencing developed while working at CPG companies • Philip Morris, Kellogg’s, Coca Cola • Focused Customer Advisory Boards • Strong partner development relationships • Focused sales and support organization

29. Oracle’s Global Consumer Customers

30. Growing CPG Family of Customers

31. Oracle’s commitment to the CPG Industry Organizations Standards Industry Leadership • GMA • Advisory Board • Consumer confidence • NRF • UCCNet • VICS Technology Council • UCCNet certified member • CPFR / VICS • RosettaNet Board (Part of UCC) • ePC • GMA Forum Leadership council • CGIT Thought Leadership • Development Customer advisory Boards • Co-development with industry leaders driven by CPG business flows CPG Targeted Business Flows GMA – Grocery Manufacturers Association UCCNet – Uniform Code Council Network NRF – National Retail Federation VICS – Voluntary Interindustry Commerce Standards

32. Consumer Goods - Food and Beverage: Business Flow Inventory Marketing & Planning Product Design & Development Supply Chain Planning Manufacturing Order Management & Logistics Channel Management • Marketing • Marketing Plan to Fund Allocation • Create and Execute Marketing Event • Create and Execute Web Campaign • Create and Execute Consumer Campaign • Create and Execute Integrated Campaign • Strategic Planning/ • Product Lifecycle • Analysis • Market Analysis to Strategic Plan • Marketing Analysis to Calendar and Budget Creation • Market Analysis to Product Concept/Line Extension • Research and • Product • Development • New Product Concept to Release • Package Design/ • Development • NewPackage Plan to Utilization • Demand • Forecasting and • Planning • Customer Collaboration to Consensus Forecast • Forecast to Plan • Supplier Collaboration to Commitment • Supplier • Relationship • Management • Supplier Negotiation to Agreement • Requisition to Receipt • Inspection to Disposition • Supplier Return to Settlement • Supplier Invoice to Pay • Process • Manufacturing • Plan to Schedule • Schedule to Produce • Lab Quality Control • Inspection to Acceptance • Lot Control/ • Genealogy • Management • Quality Issue to Resolution • Order Fulfillment • Consignment to Settlement • Customer Return to Settlement • Order Submission to Verification • Order Verification to Plan • Warehouse • Management • Pick to Ship • Plan to Customer Pickup • Inventory Transfer • Issue to Stock Reconciliation • Transportation • Management • Plan to Pick • Ship to Delivery • Delivery to Settlement • Plan to Store Delivery • Carrier Negotiation to Agreement • Carrier Invoice to Settlement • Sales Force • Automation • Settlement to Compensation • Retail Management • Key Account Negotiation to Plan • Create and Execute Trade Promotion • Deduction and Claim Resolution • Category Analysis to Plan • eCommerce (B2B • and B2C) • Click to Order (Buy) • Click to Order (Try) • Consumer Inquiry/ Issue to Response Enterprise Mgmt Business Intelligence Financials / Treasury Tax Accounting HR Projects Fixed Assets Service

33. Oracle Supply Chain Footprint • Order Management • Order Management • Receivables • Advanced Pricing • Configurator • iStore • TeleSales • Quoting & Proposals • Trade Management • Release Management • Sales Contracts (future) • Supply Chain Planning • Demand Planning • Advanced Supply Planning • Constraint Optimization • Global Order Promising • Manufacturing Scheduling • Inventory Optimization • Collaborative Planning • Transportation Plng (future) • Procurement • Purchasing • Payables • iProcurement • Sourcing • iSupplier Portal • Procurement Contracts (future) • Manufacturing • Discrete Manufacturing • Project Manufacturing • Flow Manufacturing • Project Contracts • Shop Floor Management • Process Manufacturing • Logistics • Inventory Management • Mobile Supply Chain Apps • Warehouse Management • Transportation Execution • Service • iSupport • TeleService • Service Contracts • Field Service • - Spares Management • - Advanced Scheduler • - Mobile Field Service • Depot Repair • Maintenance Mgmt. • Enterprise Asset Mgmt • Property Manager • Product Lifecycle Mgmt • Advanced Product Catalog • CADView-3D • Project Mgmt / Collab. Suite • Supply Chain Analytics • Supply Chain Intelligence

34. Oracle Finance, HR and CRM Footprint • Finance • Financials • General Ledger • Receivables • Credit Management • Payables/iPayment • Cash Management • Assets • Property Manager • Internet Expenses • iReceivables • Advanced Collections • Treasury • Lease Management • Cust Online/Data Librarian • Customer Model • Internal Controls Manager • Balanced Scorecard • Activity Based Management • Financial & Sales Analyzers • Financials Intelligence • Human Resources • Human Resources • Self-Service HR • Payroll • Advanced Benefits • Time & Labor • Training Administration • iLearning • iRecruitment • HR Intelligence • Marketing & Sales • Marketing • Trade Management • Partners Online • TeleSales • Advanced Pricing • iStore • Field Sales • Sales Offline • Quoting • Incentive Compensation • Projects • Project Management • Project Collaboration • Project Resource Mgmt • Project Costing/Billing • Internet Time • Project Contracts • Project Intelligence • Interaction Center • Advanced Inbound • Advanced Outbound • Scripting • eMail Center

35. Oracle’s Representative CPG Supply Chain Customers by Product Order Management Bimbo Bakeries Pella Corp. Alcoa Consumer John I. Haas Coca Cola Egypt Waterpik Viking Range Unilever Rocket Uni-President PepsiCo Atari Master Lock Pell Corp Royal Appliances Sunny Queen Farms Timex Herbalife Int. Schreiber Foods Supply Chain Planning Alcoa Timex John I. Haas Cannon Rudolph Foods Coca Cola Egypt PepsiCo Pakistan Kellogg’s Europe • Procurement • Bimbo Bakeries • Waterpik • Rudolph Foods • Alcoa Consumer • Pella Corp • Odwalla • Atari • Cannon • John I. Haas • PepsiCo Int. • Suntory Water • Tropicana Europe • Viking Range • Starbucks • Process Manufacturing • JM Smuckers • Weyl Beef • Smithfield Foods • West Farm Foods • Fosters • Rudolph Foods • Tropicana Belgium • Seafresh • Sammontana • Wells Dairy • Uni-President • Schreiber Foods • Alcoa • Torani • Logistics • Royal Appliances • Viking Range • Pella Corp • Thermos Corp • Igloo • Republic Windows • Service • Cannon USA • Viking Range • Pella Corp • Suntory Water • Schreiber Foods • Maintenance Mgmt • Alcoa • Product Lifecycle Mgmt • PepsiCo Pakistan • Supply Chain Analytics • John I. Haas • Rudolph Foods • Cannon

36. Oracle’s Representative CPG Finance, HR and CRM Customers by Product • Financials • PepsiCo • Alcoa consumer • JM Smuckers • Pella Corp • Bacardi • Timex • Waterpik • Sunny Queen Farms • ConAgra • Coca Cola Egypt • John I. Haas • Smithfield Foods • West Farm Foods • Blue Bell • Moosehead Breweries • Coty Cosmetics • Estee Lauder • Acco • Master Lock • Schreiber Foods • Weyl Beef • Knouse Foods • Rudolph Foods • Starbucks • Bimbo Bakeries • Fosters • Nantucket Nectars • Viking Range • Financials Intelligence • Bimbo Bakeries • Hallmark Cards • John I. Haas • Pella Corp • ConAgra • P&G • Bacardi • Starbucks • Sunny Queen • Deckers Outdoors • JM Smuckers • Warner Bros. Consumer • Alcoa Consumer • Human Resources • Human Resources • Estee Lauder • Land O Lakes • Blue Bell • Coca Cola Amatil • Bimbo Bakeries • Timex • ACCO • Payroll • Blue Bell • Coca Cola Amatil • Viking Range • Timex • Bimbo Bakeries • Marketing & Sales • Trade Management • Mattel • Schreiber Foods • Arnotts • Alcoa Consumer • Helen of Troy • Igloo • Poore Brothers • Premio Foods • Republic windows • Snack Brands Foods • Smithfield Foods • Suntory Water • Viking Range • Waterpik • Marketing & Sales • Starbucks • Unilever • Suntory Water • Sunny Queen Farms • Waterpik • Cannon Australia • Projects • Blue Bell • Deckers Outdoors • Alcoa • Atari • Bimbo Bakeries • Hallmark Interaction Center Unilever – Rocket Sunny Queen Farms Suntory Water Royal Appliance Cannon Deckers Outdoors

37. Consumer Capabilities: Deep functionality Evolution of Oracle Applications in CPG Current Differentiators… …11i.9… …Coming in 11i.10 • Process Manufacturing • Computer-Aided Formulation • Lot-Specific Costing • Environmental Testing • Reserve Mfg to Sales Orders • Stability Studies • Transportation Planning • Enhanced Co-Product Planning • Short Term Deployment Planning • Business Account Planning • Integrated Sales Contracts • Quick Ship User Interface • Customer Consigned Inventory • Retroactive Pricing in Purchasing • Global Procurement andDrop Shipments • Channel Budget Management • Enhanced Management and Resolution of Promotional Claims • Process Manufacturing • Recipe Development • Catch-Weights • Shelf-Life & Status Control • Co- / By-Products • Real Time Order Promising and Visibility • Multi-Channel Order Capture • Advanced Pricing • EDI Transactions for POs, Ship Notices, Invoicing & Warehousing • Claims & Deductions Mgmt • Lot Traceability • Funds Management • Promotional Planning • Process Manufacturing • 21 CFR Part 11 Compliance • HACCP Quality Test Points • Automatic Lot Grading • Manufacturing Scheduler • Continuous Real-Time Demand Planning • Integrated Maintenance and Production Planning • High Volume Order Processing • Enhanced Blanket Orders and Releases • Retroactive Promo Adjustments • Promotional ROI Calculations • 3rd Party POS Data Import (to Calc Promotional Accruals) • Transportation Execution • Collaborative Sourcing • Advanced Product Catalog . The following is intended to outline our general product direction and is intended for information purposes only. The development, release and timing of any features or functionality remains at the sole discretion of Oracle. This presentation is not a commitment to deliver any material, code or functionality.

38. Consumer Capabilities: Deep functionality Evolution of Oracle Applications in Non-Durables Current Differentiators… …11i.9… …Coming in 11i.10 • Mixed Mode Manufacturing • Inventory Postponement Optimization • Supplier Collab & VMI • Collaborative Planning • Supply Chain Exception Mgmt • Real Time Order Promising and Visibility • Multi-Channel Order Capture • Advanced Pricing • EDI Transactions for POs, Ship Notices, Invoicing & Warehousing • Claims & Deductions Mgmt • Lot Traceability • Funds Management • Promotional Planning • Discrete Manufacturing • Flow Sequencing • WIP Serial Tracking • Resource Centric Scheduling Workbench • Continuous Real-Time Demand Planning • Integrated Maintenance and Production Planning • Enhanced Blanket Orders and Releases • Retroactive Promo Adjustments • Promotional ROI Calculations • 3rd Party POS Data Import (to Calc Promotional Accruals) • Transportation Execution • Collaborative Sourcing • Advanced Product Catalog • High Volume Order Processing • Discrete Manufacturing • Option-Dependent Sourcing for CTO • Self-Svc Entry of Quality Data, Non-Conformances & CARs • Transportation Planning • Short Term Deployment Planning • Business Account Planning • Integrated Sales Contracts • Scarce Inventory Allocation • Quick Ship User Interface • Customer Consigned Inventory • Retroactive Pricing in Purchasing • Global Procurement andDrop Shipments • Channel Budget Management • Enhanced Management and Resolution of Promotional Claims . The following is intended to outline our general product direction and is intended for information purposes only. The development, release and timing of any features or functionality remains at the sole discretion of Oracle. This presentation is not a commitment to deliver any material, code or functionality.

39. Summary • Committed to the CPG Space • Understand the key issues facing the industry • Provide focused solutions • Building the future with key partner participation