Opportunities multiply when seized the journey to Transformation

“Opportunities multiply when seized” - the journey to Transformation Fabienne van Booma-de Smit Vice President Finance South Europe

Oracle Corporation Scale ü ü ü $37. 2 B in revenue on a trailing twelve-month basis #1 in 50 product or industry categories 400, 000 customers in 145 countries 25, 000 partners 122. 728 employees 15 million developers in Oracle online communities Innovation and Investment ü ü 35, 000 developers and engineers 18, 000 customer support specialists, speaking 29 languages 20, 000 implementation consultants 870 independent Oracle user groups with 355, 000 members *GAAP revenue reported in USD as of May 31, 2013 2 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential

Oracle’s Business Transformation: Two Phases PHASE I (1998 - 2003) Objectives: ü Get Oracle’s internal operations in order ü Simplify. Standardize. Centralize. Automate. ü Implement plain-vanilla Oracle software to run our business ü Enhance decision-making and accountability ü Increase margins 3 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential PHASE II (2004 - 2011) Objectives: ü Undertake an aggressive acquisition strategy to expand our portfolio ü Add a new line of business –hardware ü Utilize proven best practices from Phase I to accelerate operational savings ü Scale business profitably

Oracle’s Transformation Simplify, Standardize, Centralize & Automation 4 Organization Data Center Network Data Processes Applications Shared Services Self Service Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential

Operational Excellence: ‘Doing things right' Business Re-Engineering at Oracle 5 1 Simplify processes 2 Standardize systems and processes 3 Centralize in shared service centers 4 Automate processes Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential

Business Engineering at Oracle 1 6 Simplify Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential From To Old way Best way

Oracle’s Transformation: The Billion Dollar Story 1998 7 2003 & Beyond • 65+ financial apps instances ü Global Single Instance (ERP) • Fragmented Data: tens of thousands of spreadsheets ü Global Data Warehouse • Inconsistent Processes ü Global Processes • Local Support ü Shared Service Centers • Local Decision Making ü Centralized Decision Making • Autonomous Countries ü Multi National Corporation • Geographic Functions ü Global Functions • Country Infrastructure ü Simplified Global Infrastructure Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential

Business Engineering at Oracle 8 1 Simplify 2 Standardize Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential From To Old way Best way Many ways One way

Standardize Systems and Processes CENTRALIZE Decision-making Where Possible Strategies ü Standardize policies and business rules ü Adopt best practices ü Identify global process and application owners ü Use open technology standards ü Minimize number of IT systems 9 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential

Standardize … ONE Best Global Process Linchpin of Standardization Program GLOBAL PROCESS OWNER In Business Evaluate Shared Service Center Process ü Use of technology ü Responsibility profiles and organizational structure ü Efficiency, effectiveness, relevance, best practices ü Global headcount requirements Act as Champion of Global Process & Articulate ü Strategic direction ü Understanding of global requirements ü Business needs and service level standards GLOBAL APPLICATION OWNER In IT Partner with the Global Process Owner ü Global process definition ü Best use of technology Support Single Instance and Shared Services Strategy ü Application support & implementation services 10 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential

Business Engineering at Oracle 11 1 Simplify 2 Standardize 3 Centralize Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential From To Old way Best way Many ways One way Many locations Few locations

Move to Shared Services ü Grow the business while controlling costs ü Increase customer satisfaction by improving service levels ü Increase levels of control ü Fast integration of Acquisitions 12 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential

EMEA Finance SSC – Initial scope in 1999 ü 42 Countries ü 15 Processes ü Dublin 13 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential

Shared Services Model Phase 1: 1: 1999 -2003 ü Move Tactical Processes to lower-cost locations ü Set up FP & A Team in Bangalore ü Evolution of GL Function in SSC to Global Controllers Organisation (GCO) ü Move remaining local processes to SSCs or GCO ü Leave Business Finance Local 14 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential

Process overview – post 2004 Bangalore, India & Bucharest, Romania 15 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential

Centralize in 5 Shares Service Centers (SSC) 197 Countries, 22 languages üControllers üRevenue Recognition ü Procurement ü Comp Admin ü Exp Reporting 113 Countries ü Controllers ü Revenue Recognition ü Customer Contracts ü Credit & Collections 16 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 50 Countries Confidential ü Customer Contracts ü Credit & Collections ü Exp Reporting ü Procurement ü Comp Admin 197 Countries ü Controllers ü Order Entry ü AR / Cash Apps ü Exp Reporting ü Purchasing ü Fixed Assets ü Project Acct ü Credit & Collections ü Customer Data ü AP ü Comp Admin

Benefits of shared Service Consolidation Quantitative Qualitative People ü HC reductions ü Lower $ per head ü Higher service ü Redeployment of skills Process ü Increased efficiency ü Improved quality through self-service ü Standardized global processes ü One change for all ü Greater agility to respond to change Technology ü Consolidated infrastructure ü Faster upgrades ü Scalable platform ü Management dashboards ü Easier support & maintenance Business ü F&A costs lower by 30% ü Payback in 28 months ü Focus on the business & control ü Integrate acquisitions faster ü Corporate governance & compliance Information ü Accurate, meaningful, consistent & timely ü Improved decision making 17 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential

Role of VP Finance – South Region 2011 2003 • Business Partnering • Contracts • Comp Admin • Employee Expense Processing • VAT • Statutory Accounting • Payroll = Approx. 150 heads 18 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential = 15 heads

Business Partnering Face of Finance ü Completely aligned to Sales Organisation - Commercial focus ü Provide Strategic Finance Leadership to the Business ü Provide timely, pro-active analysis and information to enable the Business to make the right decision at the right time ü Drive execution of P&L goals, highlight & mitigate risks, monitor progress ü Go beyond decision support: Take ownership and make things happen ü Lead Planning cycle, Business Reviews, Approval processes, Business Presentations ü Take a holistic view of the business 19 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential

Face of Finance in Country Business Partnering Face of Finance ü ‘Direct the traffic’ to the appropriate Centre for timely resolution of Finance issues (Commission/Approval /Financing/Credit Check / Rev. Rec Issues/Payroll / AP etc. ) ü First level Finance support on many issues – Revrec, Credit ü Work with each of the centers to standardize and optimize global processes. Ensures exceptions are minimized based on local statutory knowledge ü Support Workers Council discussions to ensure smooth business activities and minimize legal risks for Oracle ü Local Finance Leader keeps ‘One Finance team‘ in Countries together, regardless of functional role and reporting lines ü Represents Finance on Local Country Strategy/Leadership Teams 20 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential

Business Engineering at Oracle 21 From To Old way Best way Many ways One way 1 Simplify 2 Standardize 3 Centralize Many locations Few locations 4 Automate Manual Automated Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential

Automate Processes ü Reduce process complexity ü Organize around end-to-end processes ü Use an integrated application architecture ü Integrate systems enterprise-wide BENEFITS ü Reduce paper flow with employee self-service • Unified data model • Lower costs • Fewer errors 22 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential

Challenges üStatutory, Tax and Cultural differences üHighly refined local solutions üApplications üFunctionality üCustomizations üLocal Decision Making üPriority Conflicts & Swift Approvals üResource Bandwidth üMultiple Sources of Truth 23 Copyright © 2013, Oracle and/or its affiliates. All rights reserved. Confidential ü Languages & Character Sets ü Communication & Managing Expectations ü Aggressive Scheduling & Transitioning ü Business Process interdependencies ü Adherence to Process Change ü Resistance to Change

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