Slide 1 – MOVARIS CONFIDENTIAL

1. ‘Last Mile’ of Finance: Integrating the Close April 19, 2006 Eric Keller, President and CEO Slide 1 – MOVARIS CONFIDENTIAL Transforming the ‘last mile’ of finance

2. Agenda • Financial close pains • Regulatory guidance • The ‘last mile’ of finance • Checklist to ‘last mile’ success

3. The Financial Close Series of interdependent tasks that a finance organization must perform on a quarterly and annual basis to produce the data and disclosures for SEC financial reports External reporting Management reporting Compliance management Analysis, Review, Adjustments Audit management

4. Financial Close Process – Pain Points • Difficult to manage • Fraught with risk • Time pressures increasing • Expensive

5. Restatements: every CFO’s nightmare Increased regulatory oversight and more complex accounting rules Source: Restatements – Traversing Shaky Ground, Glass Lewis & Co., May 31, 2005 and January 2006

6. Growing Material Weakness Disclosures (MWDs) Operational Finance Weaknesses • 1/3 of companies with MWDs had weaknesses in operational finance • 46% of operational finance MWDs related to the close and consolidation process Source: Movaris analysis of publicly-filed MWDs for 2004

7. ‘Last Mile’ Issues – Often Material Weaknesses 2005 SEC filings with material weakness disclosures Misstated accruals and estimates made during close “The company concluded that controls over the financial statement close process related to the determination of accrued liabilities and prepaid expenses were not operating effectively….resulting in numerous adjustments.” “[W]e discovered an error in a spreadsheet application, which was designed to eliminate intercompany balances. As a result of the error, amounts accumulated in the property account for one subsidiary were … inadvertently not eliminated in consolidation.” Errors in intercompany eliminations

8. ‘Last Mile’ Issues – Often Material Weaknesses 2005 SEC filings with material weakness disclosures Reliance on manual processes “[T]he company did not maintain effective controls over the communication among operating, functional and accounting departments of financial and other business information that is important to the period-end financial reporting process, including the specifics of non-routine and non-systematic transactions. Contributing factors included the large number of manual processes utilized during the period-end financial reporting process and an insufficient number of accounting and finance personnel…” Inadequate controls over non routine transactions “[A material weakness in the] design and implementation of adequate controls over the financial reporting and close process, including controls over non-routine transactions.”

9. PCAOB Comments on Period End Process “Given the high degree of risk that misstatements could occur during the period-end financial reporting process, significant attention to this process is necessary in virtually all audits." PCAOB Release 2005-023, November 30, 2005 (emphasis added)

10. CFO’s Operational Goals • Increase process efficiencies, devoting more time to analysis and less time to close and compliance efforts • Decrease both direct and indirect costs • Increasing financial statement accuracy while reducing risks of restatements and material weakness disclosures

11. Board book FORM 10-K Audit opinion Consol-idation ERP* CRM SCM BI / DW Excel Period End = ‘Last Mile’ of Finance Financial Close • Critical processes that bridge from transaction systems to financial statements • Typically informal, occurring outside any formal system of record • Last opportunity to identify and resolve issues before statements

12. ‘Last Mile’ of Finance – Disconnected Processes §302Certification FORM 10-Q10-K Internal Controls Evaluate& TestControls RemediateControls Aggregate& AnalyzeResults Report &DiscloseInformation Financial Transactions Excel email Word Enter & Process Transactions Financial Close ERP Report & Disclose Information AggregateFinancialAmounts Review Preliminary Results PerformFinalAdjustments Board book Audit Opinion Consoli-dation Excel email Word

13. Financialsystems Consolidation Reporting Entity Close Enter & Process Transactions Transaction Systems I/C eliminations, minority interest eliminations EnterAdjustingJournals Aggregatefinancialdata Consolidation Finalize Financial Statements Report Production FORM 10-Q, 10-K 302 Cert. Provide evidencefor audit Board book Entertop-level adjustmentsto reconcile FORM 10-K Audit Opinion Mgt reports Re-consolidateto reconcile ‘Last Mile’ Tasks – Many Not Automated

14. Financialsystems Consolidation Reporting Entity Close Enter & Process Transactions Transaction Systems I/C eliminations, minority interest eliminations EnterAdjustingJournals Aggregatefinancialdata Consolidation Performcompliance activities • “Close the books” • Reconciliations- Valuations • etc. Review &approve adjusting journals Review & approveconsolidated results. Detect & resolve exceptions Loadconsolidatedfinancials Assessinternalcontrols with fin accounts Review preliminaryresults in readiness dashboard Manualsteps Finalize Financial Statements Report Production FORM 10-Q, 10-K 302 Cert. Provide evidencefor audit Board book Entertop-level adjustmentsto reconcile FORM 10-K Audit Opinion Mgt reports Re-consolidateto reconcile Provide evidencefor audit Determinefinal, top-leveladjustments Review & approve reconcilingadjustments Develop disclosures Create & file financialstatements Financial Analytics ‘Last Mile’ Tasks – Many Not Automated

15. Challenges in ‘Last Mile’ Tasks x x x x Reporting Entity Close Consolidation Finalize Financial Statements Report Production • Do we have supporting documentation for all footnote disclosures? • Did we make all the required disclosures? • Can we sign off on internal controls over financial reporting? • Does the management reporting package agree with the financial statements? • Is there consistency across all critical internal & external reporting? • Have we booked all adjustments? • What’s the impact to my financial statements? • Do we have documentation and approval for all top-level adjustments? • Are all top-level adjustments posted to the system of record? • Are all my close tasks complete? • Did we miss any steps? • What are my open issues related to the close? • Did we have any control failures? • Were all control remediation’s completed? • Do we have supporting documentation for all elimination and consolidation entries? • Is there review and approval documentation for each trial balance? • Did each consolidation step occur? • What are my open issues related to consolidation?

16. SEC, PCAOB Call for Integration “An integrated audit combines an audit of internal control over financial reporting with the audit of the financial statements such that the objectives of the two audits are achieved simultaneously through a single coordinated process.” PCAOB, Integrated Audit, May 2005 (emphasis added) “We expect the internal control audit to be better integrated with the audit of a company's financial statements….” SEC , May 2005 (emphasis added)

17. From Disconnected Processes §302Certification FORM 10-Q10-K ‘Last mile’ of finance Internal Controls Evaluate& TestControls RemediateControls Aggregate& AnalyzeResults Report &DiscloseInformation Financial Transactions Excel email Word Enter & Process Transactions Financial Close ERP Report & Disclose Information AggregateFinancialAmounts Review Preliminary Results PerformFinalAdjustments Board book Audit Opinion Consoli-dation Excel email Word

18. To Integrated Close Solution FORM 10-K Board book Audit opinion §302 Cert Integrate internal controls, close tasks and financial reporting in the ‘last mile’ Integrated close Enter & Process Transactions Report & Disclose Information EvaluateControls AggregateFinancial & Control Results Review Preliminary Results PerformFinalAdjustments ERP Consoli-dation

19. Slide 19 – MOVARIS CONFIDENTIAL Slide 19

20. What issues are holding up revenue close tasks? Slide 20 – MOVARIS CONFIDENTIAL Slide 20 – MOVARIS CONFIDENTIAL Slide 20

21. What is the magnitude of the issue? Slide 21

22. Estimated dollar impact is $385M. Slide 22

23. What’s the problem with R&D expense controls? Slide 23

24. Slide 24

25. Slide 25

26. What are the tax footnote issues? Slide 26

27. Slide 27

28. Generate 10K 28

29. Slide 29

30. Income Statement Balance Sheet Cash Flow Tax Footnote Slide 30

31. Transforming the ‘last mile’ of finance Movaris Checklist for a well-run close • Integrate close, compliance task list • Automate routine business processes • Track, manage, secure, store critical documentation • Distribute tasks to the right individuals across company • Unify controls, close tasks, financial statement accounts • Apply analytics for continuous improvement • Automate creation of financial documents • Create system of record for ‘last mile’ activities

32. Benefits of a Well Run Close • Decrease Costs • Reduce Time • Increase Confidence

33. Benefits of an Integrated Close A tight and robust financial close is the reflection of well honed finance processes.

34. ‘Last Mile’ of Finance: Integrating the Close April 19, 2006 Q&A Slide 34 – MOVARIS CONFIDENTIAL Transforming the ‘last mile’ of finance