Marvel Enterprises Oracle Marvels History 1961 1960 70

Marvel Enterprises & Oracle

Marvel’s History • 1961 • 1960 -70 • 1991 • 1996 • 1998 • 2002 -present Marvel Comics born with debut of Fantastic Four X-Men, Spider-Man, Hulk and others born Marvel goes public as MRV Marvel files for bankruptcy Marvel reborn as MVL Turnaround story complete with huge theatrical hits Spider-Man and X-Men

Marvel Stats • Library of over 5000 characters • Sales in 2004 of $513 million * • Market value of $2. 4 billion * • Approximately 230 employees * as of 4 Q 2004

Marvel’s Structure Publishing Toys Studio Licensing • Approximately 60 -70 titles published per month • Net sales in 2004 of $86 million • 13% of publishing revenue from mass-market sales

Marvel’s Structure Publishing Toys Studio • Outsourced toy manufacturing • Net sales in 2004 of $213 million • New In-Licensing Agreements Licensing

Marvel’s Structure Publishing Toys Studio Licensing • Existing Licensing Agreements with Major Studios • Direct to Video Animated Films • Recently Announced In-House Production of Movies

Marvel’s Structure Publishing Toys Studio Licensing • Over 500 Active Licensees • Net sales in 2004 of $215 million • Best in Class partners in every major category

Marvel Enterprises Global Licensing System Rights & Royalties Management

The Challenge • Non-linear approvals • Complex rights structure • Guarantee Tracking • Variable rates and payments • Management requires reports

The Issues • Manual workflows • Unstructured Rights Tracking • Non-integrated Financials • Inefficient Royalty Processing • Difficult to aggregate data

The Solution • Quoting Approval Workflow • Detailed Rights Configuration • Service Contracts Integration • Custom Royalty Engine • Discoverer Reporting

Research Customer Research Deal Creation / Negotiation Initial Licensee / Agent Discussions Deal Approval/Legal Review Check Rights Availability Deal Memo Creation Executive Approval • Access Repository Deal Memo Creation • Consumer Products Group • Collision Checking • Proactive Targeting of Financial Review Rights or Licensees Using Rights repository Deal Approval/Legal Review…Cont. Legal Review • Legal T’s & C’s Royalty Submission Royalty Processing and Management Execution of Contract Royalty Management • Marvel Signature • Billing Schedule • Upfront Payments Product Approval Product Review / Brand Integrity • IP Assets to Licensee • Product / Sample Submission Process Flow Players Accounting & Compliance Licensee Manage Royalty Reports Manage Royalties & Open Invoices Assure Compliance Licensing Sales Department Executive Legal • Validate Rights • Confirm Royalties Calculations • Finance • Legal • Finance Brand Assurance Final Product Approval • Legal • Brand Assurance

Marvel Enterprises Oracle Initiatives Publishing Toys Human Resources Possibly ECM

Publishing • Vendor Management & Scheduling • Order Management & Shipment • Invoicing & Revenue Recognition • Talent Work Tracking • Payment Processing • Workflow & Alerts

Toys • Demand Planning • Procurement • Multi-Currency Revenue • Expense Tracking • Logistics Management • Warehouse Management

Human Resources • Central HR Data Repository • ADP Integration • Incentive Compensation • Workflow & Alerts • Future Self-Service Access

Enterprise Content Management • Potential Oracle Solution • Integration with Licensing System • Brand Assurance & Production Workflows • Archiving Process and SAN • Portal for Digital Asset Access and Product Submissions • Reporting

“With great power comes great responsibility”