Financials Folia Grace Director Applications Marketing Oracle Corporation

Financials

Folia Grace Director Applications Marketing Oracle Corporation

Financials Overview and Update

Pressure Stays on the Back Office Pressure for corporate transparency (SOA, IFRS) External Pressure Internal Demands Operational analysis is in the forefront Employee empowerment Strategic trading Planning cycles partnerships out of control Understanding the Facts Today's economy requires the precise execution of strategy and tactics Data volumes are exploding – better metrics are needed to provide guidance Source: Gartner: "HR and Finance: New Requirements, New Technology, " Gartner Symposium 2004 Presentation by Lee Geishecker and Jim Holincheck , October 22, 2004

A Balancing Act • Growth S trategy • Decision Support • Managem ent Report ing • Customer Satisfactio n • Opportun ity • Complian ce • Fiduciary Co • Regulator ntrol y Reportin g • Cost Con tainment • Risk Mana gement Finance Technology Investments Help Balance the Scale

Gartner’s Financial Value Chain Transactions Supply chain Accounting HR/payroll Procurement Inventory Processes Credit and collections Expense management Time reporting Compliance Approval and workflow Trade promotion Measurement Forecasting Strategy Planning Budgeting Consolidation Treasury Moving from a transactional focus to a holistic approach of administrative view of information Responding to pressures and demands of regulatory compliance Shifting from gatekeeper to enabler Source: Gartner: "HR and Finance: New Requirements, New Technology, " Gartner Symposium 2004 Presentation by Lee Geishecker and Jim Holincheck , October 22, 2004

The Finance Imperative VISIBILITY Deliver Better Business Information CONTROL Attain Sustainable Compliance EFFICIENCY Improve Business Processes at the Lowest Cost

Oracle Delivers Visibility Daily Business Intelligence Flexible, Pre-Built Flexible Selection Shared Hierarchies Daily Results Performance Measures Drill-Across Reporting Profit and loss Marketing leads Sales forecast Service requests Contracts renewals Headcount Etc

The Finance Imperative VISIBILITY Deliver Better Business Information CONTROL Attain Sustainable Compliance EFFICIENCY Improve Business Processes at the Lowest Cost

Oracle Compliance Architecture Delivering Sustainable Compliance Strategy, Tone Setting, Measurement Balanced Scorecard Business Intelligence Enterprise Planning and Budgeting Risk Management Communication & Training Internal Controls Manager i. Learning BAM BPM Business Processes and Workflow Content and Records Management E-Business Suite Collaboration Suite Security and Identity Management Application Server 10 g ü COBIT ü International Service Oriented Architecture BPEL ü SOX Database 10 g Laws

The Finance Imperative VISIBILITY Deliver Better Business Information CONTROL Attain Sustainable Compliance EFFICIENCY Improve Business Processes at the Lowest Cost

Oracle Delivers Efficiency Revenue Restatements 40% Days Sales Outstanding 20% AP/AR Employee Costs 50% Invoice Issue Time 33% Transaction Cost/Expense Report 60% Expense Reimbursement Time 85% Closing Time 80% Closing Costs 10% Sources: CNLR, Blue Nile, Hudson’s Bay, CGE&Y, Dr. Min Wu – NYU Stern School of Business

Oracle Financials 11 i 10

Oracle Financial Value Chain Orders Projects Contracts Service Leases Trade Payables Receivables Payroll Corporate Performance Management Self-Service Procure to Pay Credit to Cash Plan-to-Measure Travel & Expense Management Financial Control & Reporting Cash & Treasury Management Governance & Compliance Business Process Models Asset Lifecycle Mgmt Service Oriented Architecture Single Data Model POs Leases Projects Contracts Inventory Trade HR Projects Contracts Inflation Adjust. Maintenance Payments

Oracle Financial Value Chain Visibility, Control, Efficiency Corporate Performance Management Collaboration Procure-to-Pay Credit-to-Cash Plan-to-Measure Travel & Expense Management Financial Control & Reporting Cash & Treasury Management Governance & Compliance Asset Lifecycle Mgmt Lease Mgmt Real Estate Mgmt Business Process Models Service Oriented Architecture Single Data Model

Oracle Plan-to-Measure Understand the Past, Control the Present, Position for the Future Collaboration Planning, Budgeting & & Forecasting Strategy Formulation & Goal Achievement Corporate Performance Management Business Activity Business Monitoring & & Monitoring Operational Reporting Financial Consolidation Business Process Models Service Oriented Architecture Single Data Model

Oracle Enterprise Planning and Budgeting Analyze, Plan, Budget & Report • Integrate with General Ledger • Open interface for any data source • Configurable schema Financial • Business process driven • Budget collection • Workflow notifications Stay Informed Operational Develop Plans Statistical External • Data scoping by user • Responsibility hierarchies • Data processing maps Tune Plans • Reporting and analysis • Exception alerts • Text annotations

Model the Future Consistently Business Unit 1 Plan 5 Year Plan Fiscal Year Plan Quarterly Plan for Rolling 18 Months Corporate Strategy Business Unit 2 Plan Business Unit 3 Plan Collaborate and maintain consistency by sharing business drivers, models, rules, metrics, and methodologies across the organization

Control The Planning Process • Clearly Define the Planning Process - Rules - Schedules - Tasks - Owners • Automate Tasks - Set calendars Distribute worksheets Solicit & validate submissions Communicate assumption changes Route for approval • Track Actions and Status

Monitor Results Oracle Daily Business Intelligence Flexible, Pre-Built Flexible Selection Shared Hierarchies Daily Results Performance Measures Drill-Across Reporting Profit and loss Expenses Payables Marketing leads Sales forecast Service requests Contracts renewals Headcount

Easy, Intuitive Drilldowns Enable easy drilldown into details via links

11 i. 10 Daily Business Intelligence Significant new content 11 i. 9 11 i. 10 Growth # Measures 160 235 47% # Reports 318 581 83% # Dashboards 31 DBI is now configurable 36 16%

Oracle Financial Value Chain Visibility, Control, Efficiency Corporate Performance Management Collaboration Procure-to-Pay Credit-to-Cash Plan-to-Measure Travel & Expense Management Financial Control & Reporting Cash & Treasury Management Governance & Compliance Asset Lifecycle Mgmt Lease Mgmt Real Estate Mgmt Business Process Models Service Oriented Architecture Single Data Model

Oracle Internal Controls Manager Streamline Internal Control and Risk Management Program Office Business Intelligence Collaboration Track Compliance Status, Document Findings, Recommend Changes Document Processes Assess Internal Controls Scope Audit Test Controls Create Library & Org Structure Certify and Report Results Business Process Models Service Oriented Architecture Single Data Model Auditors

More Efficient Internal Controls Testing Automated Process Documentation Process > Sub process > Procedure > Instruction > Online Help

Higher Certainty in your Risk Assessment Financial Statement Certification Business Process Certification Audit/Management Testing Results

Lower External Audit Verification Costs Audit Project Management Scope Audit procedures Testing plans Findings Remediation plans Issues

Oracle Financial Value Chain Visibility, Control, Efficiency Corporate Performance Management Collaboration Procure-to-Pay Credit-to-Cash Travel & Expense Management Plan-to-Measure Financial Control & Reporting Cash & Treasury Management Governance & Compliance Asset Lifecycle Mgmt Lease Mgmt Real Estate Mgmt Business Process Models Service Oriented Architecture Single Data Model

Oracle Financial Control & Reporting Turn Financial Data into Information Business Intelligence Plan and Budget Allocate & Consoli date Transac t& Record Business Process Models Collaboration Report Service Oriented Architecture Single Data Model

Financial Control & Reporting Accelerate the Close Process Rapidly Consolidate Financial Information Across Different Entities and for Multiple Currencies, Charts of Accounts, Periods Streamline Inter-Company Accounting and Reconciliation Automate Labor Intensive Processes Achieve Performance Scalability Accelerated Close Process

Oracle General Ledger Enhancements Gain Efficiencies w/ Highly Automated Financials Processing – e. Xtensible Business Reporting Language (“XBRL”) standard – XML publisher – Interface data transformer – Currency rates manager – Improved UI for transaction entry and management – Establish and Maintain Superior Internal Controls Increase Enterprise Visibility – Profit & Loss Portal Ÿ Daily cumulative revenue trends Ÿ Pipeline to revenue report

XML Publisher Professional Quality Financial Reports Report Template XML Publisher FSG Report as XML Output Published FSG Report!

From This…

…to this

Consolidation Challenges… Manual processes Country-specific consolidation requirements Lack of audit trail Inadequate reporting tools Management and regulatory reporting

Oracle Financial Consolidation Hub Legacy Spreadsheet • Efficient Consolidation § Support for global consolidation requirements § Automated processing with one-touch workflow § User-defined best practices for intercompany, minority interest, and investment eliminations • Financial Consolidation Hub • Well-controlled Consolidation Process § Monitoring, drill-down, and audit trail § Dynamic ownership structures § Impact analysis and exception handling One View of Financial Performance § Consolidation of financial information from any source People. Soft SAP § Statutory and management reports § Integrated with planning and budgeting

Financial Consolidation Hub vs. GCS (General Ledger) Financial Consolidation Hub Statutory and Management Reporting Separate set of books Legal and management consolidation Sub-consolidation Separate set of books Automatic in consolidation hierarchy What-if Consolidation Separate set of books Automatic simulation for duplicate hierarchy Acquisitions and Disposals New set of books and or Balancing Segment Values Consolidation hierarchy modified to reflect ownership change Partial Ownership Recurring journals or Mass. Allocations Single minority interest rule for entire hierarchy Intercompany Separate elimination for each trading partner Single intercompany rule for entire hierarchy Consolidation Processing Forms-based, one tier at a time Workflow-driven, multi-tier Non-Oracle Sources Load balances into separate GL book XML, Web. ADI Validation rules

Oracle Financial Value Chain Visibility, Control, Efficiency Corporate Performance Management Collaboration Procure-to-Pay Credit-to-Cash Plan-to-Measure Travel & Expense Management Financial Control & Reporting Cash & Treasury Management Governance & Compliance Asset Lifecycle Mgmt Lease Mgmt Real Estate Mgmt Business Process Models Service Oriented Architecture Single Data Model

Oracle Credit-to-Cash Solution Accelerate Cash Cycle, Manage Revenue w/ Fiscal Discipline Business Intelligence Customers Collaboration Banks Manage Customer Credit Transact Invoice / Bill Manage Receivables Receive Pmt Write-off Bad Debt Manage Revenue Manage Customer Data Quality Business Process Models Service Oriented Architecture Single Data Model Payment Processors Data Providers

Oracle Receivables Enhancements Issue Invoices, Receive Cash, Manage Revenue Increase Efficiencies and Improve Cash Flow – Improved UI for transaction entry and management – Automatic claims creation with Oracle Trade Management – Receipt to receipt application – New prepayment types (ACH, direct debit and check) – Web services Instill Corporate & Fiscal Discipline – Credit memo approval management workflow – Automated receipt handling for credits

Oracle Credit Management Reduce Credit Decision Cycle Times and Costs Automatically Generate Credit Review Requests Upon Business Event New in 11 i 10 – Greater Visibility to customer claims – Minimize Valueless Tasks Create a Central Repository for Viewing and Analyzing Time Critical Data Case Folder

Present Understandable Bills / Invoices Offer Control and Flexibility A c c o u n ti n g Account for Receivable & Payment Recognize Revenue Upon Event C u s to m e r T r a n s a c ti o n P r e s e n tm e n t Provide Summarized Roll-Ups Offer Detailed Drill-Downs Facilitate Customer PO Recon

Bill Presentment Architecture Provide Understandable Bills / Invoices With Drill Down • Faster View Payment

Oracle Advanced Collections Enhancements Collect More Money Faster with Less Effort Increase Collections Success – Statement reprinting – Reassignment capabilities let you manage collector work Streamline the Collections Process – Mass promises - single screen to process promises for multiple invoices Get a More Accurate View of Customer Information – Customer view aligns with Oracle Receivables (to ‘bill-to’ site level) – Integration with Oracle Trade Management provides a view of outstanding customer claims

Oracle Trade Management Manage and Resolve Customer Claims Reduce Claims Settlement Time – Automatic claims creation via integration with Oracle Receivables Understand Customer Claims – View of customer claims in the context of collections and credit management processes Gain Tighter Control of the Claims Handling Process

Centralize Customer Data Oracle Customer Data Hub Centralize Customer Data without Disrupting Existing Systems Customer Data Hub Improve Data Quality at a Lower Cost Synchronize Consistent Customer Data & Processes Across the Enterprise Leverage 360 -degree View of the Customer for Real-time Business Decisions Industry Partners Vendor Packages Legacy, Custom

Oracle Financial Value Chain Visibility, Control, Efficiency Corporate Performance Management Collaboration Procure-to-Pay Credit-to-Cash Plan-to-Measure Travel & Expense Management Financial Control & Reporting Cash & Treasury Management Governance & Compliance Asset Lifecycle Mgmt Lease Mgmt Real Estate Mgmt Business Process Models Service Oriented Architecture Single Data Model

Oracle Procure-to-Pay Bridge Finance & Procurement for Lower Costs & Stronger Compliance Demand Creation Business Intelligence Indirect & MRO Collaboration Settlement Strategic Sourcing/Contract Mgmt Banks Direct Materials Requisi tion Designed Materials Purchas e Goods /Service s Receive Goods/ Service s Invoice Issue Paymen ts Payment Processors Supplier Collaboration Services SWIFTNet Business Process Models Service Oriented Architecture Single Data Model

Online Negotiation & Collaboration Drive More and Better Sourcing • Online bid analysis & scoring • Award allocation rules • Template-based contract authoring

Embedded Terms Enforcement Enforce Contracted Pricing and Terms Sourcing Contracts • Negotiate pricing • Author and terms purchasing contracts • Enforce contract deliverables i. Procurement • Direct self- service orders to preferred suppliers at contracted pricing Purchasing • Create purchasing transactions at contracted pricing Automatically implement negotiated pricing and terms in every transaction

Oracle Supplier Network Message Automation Made Easy Problem: Distributed Complexity Solution: Oracle Supplier Network ü ü ü Network Model for Message Exchange Real-Time Transformation & Routing Robust Exception Management Pre-Certified Community of Suppliers Early Adopters Wanted

Total Procurement Visibility Globally Monitor Compliance in Real-Time Results Flexible Time Periods • Actionable information on savings Flexible Comparisons Performance Measures • At-a-glance: – – Links Graphs Reports Contract leakage Non-contract purchases (sourcing opportunities) Purchasing trends Payables leakage

Paperless Invoice Processing Lower Costs, Improve Control Invoice Review & Approval EDI/XML Self Billing (ERS/Consigned Inventory Usage) i. Supplier Portal Services Invoices Payments Invoice Validation, Control & Exception Handling

Oracle Procurement Enhancements Improve Supply Management Performance Oracle Purchasing • Centralized procurement • Formula based pricing Oracle i. Procurement • Services procurement support • Requisition smart forms • Requisition lifecycle tracking Oracle i. Supplier Portal • Enhanced data collection – – Update bank account information Lot, serial and license plate number

Oracle Payables Enhancements Balance Supplier Terms and Enterprise Concerns Lower Costs – Improved UI for transaction entry and management – Supplier open interface import Instill Corporate and Fiscal Discipline – Accounting entries report enhancements – Invoice approval workflow resubmission enhancement – Supplier bank account security enhancement Improve Business Relationships – Enhanced invoice entry in Oracle i. Supplier Portal – Supplier site attachments

Oracle Financial Value Chain Visibility, Control, Efficiency Corporate Performance Management Collaboration Procure-to-Pay Credit-to-Cash Plan-to-Measure Travel & Expense Management Financial Control & Reporting Cash & Treasury Management Governance & Compliance Asset Lifecycle Mgmt Lease Mgmt Real Estate Mgmt Business Process Models Service Oriented Architecture Single Data Model

Oracle Travel & Expense Management Lower the Total Cost of Travel and Expense Business Intelligence Collaboration Credit Card Providers Travel/ Spend Employees Approv e Expens es Create Expens e Reports Business Process Models Audit Expens e Reports Pay/ Reimbu rse Service Oriented Architecture Single Data Model Employees

Oracle Internet Expenses Enhancements Lower the Total Cost of Travel & Expense Lower Costs – Enhanced credit card business flow management Improve Business Relationships – Home Page offers highlighted links alerting employees to credit card issues requiring action Instill Corporate and Fiscal Discipline – New audit management tools (audit notes, approval communications) – Enhanced approval rules using Oracle Approvals Management – Enhanced approver entry Master. Card Visa Diners Club American Express

Oracle Financial Value Chain Visibility, Control, Efficiency Corporate Performance Management Collaboration Procure-to-Pay Credit-to-Cash Plan-to-Measure Travel & Expense Management Financial Control & Reporting Cash & Treasury Management Governance & Compliance Asset Lifecycle Mgmt Lease Mgmt Real Estate Mgmt Business Process Models Service Oriented Architecture Single Data Model

Oracle Cash & Treasury Management Increase ROI, Decrease Cost of Financing Business Intelligence Collaboration Deal Management Cash Forecasting Cash Positioning Settlement Cash Treasury Risk Accounting Reporting Business Process Models Service Oriented Architecture Single Data Model

Oracle Cash Management Enhancements Optimize Liquidity & Control Cash Minimize Idle Cash with Daily Cash Positions – New cash position worksheet streamlines the process – Options to generate and view cash positions by currency or by bank account – Drilldown to details of cash position source transactions Make Better Decisions with Global Forecasting – Options to view forecasts by GL cash position, bank account, or transaction source – Drilldown to details of forecast source transactions – Direct access to Oracle Discover for complex analysis Protect Your Cash with Automated Reconciliation – Reconciliation of Oracle Payroll EFT and check payments

Increase Cash Visibility Manage Liquidity with Cash Forecasting Option to view forecast results by bank account Exclude rows from summary calculations Drill Down to transaction details

Increase Cash Visibility Control Cash with Cash Positioning View by currency or by bank account Online refresh capabilities Drill down to details Access Inter-Account Transfer form

Oracle Financials Visibility, Control, Efficiency Corporate Performance Management Collaboration Procure-to-Pay Credit-to-Cash Plan-to-Measure Travel & Expense Management Financial Control & Reporting Cash & Treasury Management Governance & Compliance Business Process Models Asset Lifecycle Management Service Oriented Architecture Single Data Model

Oracle Asset Lifecycle Management Maximizing Return on Assets Business Intelligence Long Range Capital Plan Annual Capital Budget Collaboration Procure Construct Install Asset Lifecycle Retire Dispose Salvage Capitalize Maintain Commission Repair Operate & Startup Depreciate Revalue Business Process Models Service Oriented Architecture Single Data Model • Assets • i. Assets • Maintenance Management • Real Estate Management

Oracle Assets Enhancements Simplify Asset Management Complexities Get a Global View – Enhanced ‘what-If’ analysis in MRC – Enhanced asset inquiry Decrease Total Cost of Asset Ownership – Group depreciation pools assets with similar depreciation requirements – Mass property allows group of similar assets to be treated as one – Mass external transfers automates the import process – Retirement notification streamlines high vol. asset retirements – Improved UI for transaction entry and management

Oracle i. Assets – New Product Manage Assets with Self-Service Make Better Decisions with Real-Time Information – Asset inquiry and detail view Maintain Control of Enterprise Assets and Data – Restricted data access – Approval workflow for on-line asset transfers • Cost center-based approval • Management hierarchy-based approval • Delegated authority Use Self-Service to Improve Process Efficiencies – New on-line transfer functionality • Multi-way request generation

Oracle Real Estate Management Optimize Your Entire Portfolio Business Intelligence Collaboration Property Management Transaction Management Corporate Commercial Retail Construction Management Facilities Management Business Process Models Service Oriented Architecture Single Data Model

Oracle Real Estate Management Enhancements Optimize Your Entire Portfolio Oracle Property Manager – Increase tenant occupancy rates – Optimize tenant services and facilities management Ÿ Public views for CAD – Streamline Financial Management and Reporting Ÿ Recovery module – Reduce Leasing and Administrative Costs Ÿ Variable rent gateway Oracle Enterprise Asset Manager – Integrate with Oracle Property Manager Ÿ Property assets can be cleansed and viewed

Oracle Financials Visibility, Control, Efficiency Corporate Performance Mgmt Self-Service Procure to Pay Credit to Cash Plan-to-Measure Travel & Expense Management Financial Control & Reporting Cash & Treasury Management Governance & Compliance Asset Mgmt Lease Mgmt Real Estate Mgmt Business Process Models Service Oriented Architecture Single Data Model

Oracle Financials 11 i. 10 Grow Globally Americas – Argentinean Tax Reporting EMEA – Polish Globalization Enhancements – Polish Tax Depreciation Common Country – ECE VAT Reporting – Enhanced foreign currency transaction handling

Support for Industry Specific Processes Manufacturing • High Technology • Industrial Manufacturing • Life Sciences • Chemicals • Aerospace & Defense • Automotive • Consumer Goods Asset Intensive • • Communications T&T: Airlines Utilities Oil & Gas Service • Financial Services • Professional Services • Eng & Construction • Retail & Real Estate Mgmt Public Services • Public Sector • Healthcare: Provider • Education & Research: Hi-Ed

Financial Services: Banking Attract and Retain Profitable Customers Oracle General Ledger – Easily manage complex currency exchange requirements Ÿ Currency rates manager Ÿ Multiple reporting currencies revaluation against primary currency – Support line of business reporting Ÿ Secondary tracking segment Oracle Regulatory Capital Manager – Fully integrated financial and risk analysis – Flexible solution to meet diverse regulatory requirements – Complete compliance solution at the lowest cost

Oracle Public Sector Financials Efficiently Manage Public Funds Meet Complex Reporting Requirements – Additional validations for multi-fund AR accounting – Multi-fund AR integration with Oracle Cash Management – Cash basis drilldown from GL to AR Manage Budgets and Control Spending – Funds available inquiry drilldown – Funds available detail report – Commitment budgetary control Simplify Fund Accounting

New Product 11 i. 10 Time Frame Oracle Public Sector Loans Manage the Complete Lending Cycle with One System Use Flexible Origination Tools To Tailor-Fit Loans – On-line applications for borrowers, co-borrowers and guarantors – Amortization and repayment schedules Streamline Loan Servicing to Improve Customer Satisfaction – Servicing center with quick links to common tasks – On-line statements and payment history Know and Manage Your Loan Portfolio – Dashboard – status of loan and portfolio – Borrower snapshot and related loan views Manage Public Sector Lending Requirements – Support for multi-fund accounts receivables (MFAR) – Offset with AR/AP netting

Oracle U. S. Federal Financials Serve and Support Your Governing Agencies Comply w/ Regulatory Accounting & Reporting Requirements – 1219/1220 reporting by agency location code – Secure payment system (SPS) payment formats – Bulk data formats – 1099 -INT and 1099 -G Consolidate and Communicate Business Information – User configurable trial balances & transaction registers – Comparative financial statements Efficiently Manage Uses and Sources of Funds – Third party payments – Multi fund receivables

Evolution of Oracle Financial Value Chain Base Differentiators… New in 11 i. 9… New in 11 i. 10… • Daily business intelligence • Enterprise risk management • Credit management • Delinquency scoring and • Enterprise planning & budgeting • Audit operations, compliance for financials • Global single instance and shared service center support • Global language, currency and regulatory support • Unified data model • Industry leading performance and scalability • Unified customer model with data quality management tools • Self-service access to 360 degree view of customers • Integrated collections management • Online receipt & dispute mgmt • Online supplier procurement and payment management • Property and real estate management collections strategy management • Event-based revenue mgmt • Expense report policy compliance and auditing • XML transaction processing for core financials • Global group depreciation • Real estate space planning • Global lease management & automated month-to-month & holdover lease creation • Enhanced GL allocations & certification management* • Segregation of duties capabilities* • New & improved user interface for professional forms • Web services for financials • XBRL financial reporting • Enhanced bill presentment: user definable formats & online drill down capabilities* • Enhanced credit, collections, & trade mgmt integration flow • Self-service asset management • Common area maintenance allocation, billing & collection* • Investor agreements for leased assets & self-service lease mgmt • Enhanced credit card business flow management • Cash positioning and forecasting • Supplier open interface *Currently available as patch for 11 i. 9 in part or whole

Oracle Financials VISIBILITY Deliver Better Business Information CONTROL Attain Sustainable Compliance EFFICIENCY Improve Business Processes at the Lowest Cost

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