Project XTCS Presented by Helen Milani Michael Raj

Project XTCS Presented by: Helen Milani, Michael Raj, Lynette Sequeira 01/24/06 Xilinx Confidential

Today’s Topics • • • • 2 Introduction to Xilinx Supply Chain Drivers and Supply Chain focus areas Project back ground What is Trade Compliance? Key requirements New application overview Oracle XTCS Interfaces Project Implementation Benefits Lessons Learned Xilinx XTCS Demo Management Dynamics overview Xilinx Confidential

Introducing Xilinx • Leader in fastest growing semiconductor segment – Invented programmable chip in 1984 – 7, 500+ customers, 50, 000 design starts/year • Leader in semiconductor process technologies – First to 180 nm, 150 nm, 130 nm and 90 nm • Pioneer of fabless semiconductor model – Focus on design, marketing, support – Partner for everything else • A well-managed company and great place to work 3 Xilinx Confidential

Xilinx Worldwide Presence Headquarters R&D Sales, Marketing, Support Manufacturing (Fab, Assy, Test) Rocket. Labs 4 Xilinx Confidential

Xilinx Revenue 1600 $ Millions 1400 1200 1000 800 600 400 200 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Fiscal Years 5 Xilinx Confidential

Xilinx Supply Chain Wafer Fab Assy & Test 60 -90 Days 14 Days Distribution & Mfg Network End Market Wafer Fab Assy & Test Distributor Wafer Fab Assy & Test Wafer Fab 6 Xilinx Confidential EMS End Customer

Fundamental Supply Chain Drivers • • • Xilinx products are “generic” until the customer programs them Total Manufacturing Time is 75+ Days Fabrication, Assembly at vendor site Test and back end processing – In-house – Vendor Warehousing model includes In-house and 3 pl(3 rd party logistics WH • Use Oracle ERP system with Management Dynamic’s Trade collaborator application to manage global trade compliance at Xilinx. – Compliance screening and generating export docs and government docs for all orders done in XTCS (Xilinx Trade Compliance System) 7 Xilinx Confidential Today Topi

Global Trade Compliance Background 8 • What is Trade Compliance? – Export and Import of goods need government clearance – Governments create rules and regulations – Globalization made Trade Compliance a must have feature for companies, who trade across borders • Cross-border trade involves movement of goods, services & technology through multiple countries to end-user locations • Multinationals such as Xilinx must comply with increasingly stringent import and export requirements (severe penalties for non-compliance) • Correct documentation needed to prevent cross-border supply chain delays • Physical product shipments must be reconciled with revenue recognition, to meet legal financial reporting requirement Xilinx Confidential

U. S. Export Controls 1. What are Export Controls • Laws enforced by government to regulate distribution of certain exports to foreign nationals and foreign countries 2. Why have Export Controls • Restrict exports of goods and technologies that could contribute to military potential of other countries, etc. 3. Increased Focus Post 9/11 • Seen as anti-terrorism tool with increased focus on enforcement 4. U. S. Government Agencies • Commerce: Export Administration Regulations ( EAR ) for “Dual Use” technologies • State: International Traffic in Arms Regulations ( ITAR ) for inherently military technologies • Treasury: Office of Foreign Assets Control ( OFAC ) prohibits transactions with countries subject to embargo, boycott or trade sanctions 5. Penalties • Severe civil, criminal and administrative penalties under EAR, ITAR & OFAC for export violations 6. Export Compliance Program • Required by government to show due diligence by Xilinx ( government audits increasing ) 9 Xilinx Confidential

U. S. Import Controls 1. What are Import Controls • Import prohibitions, restrictions, specific product requirements & country of origin marking requirements 2. Entry Process • Importer required to use "reasonable care" when making entry of imported merchandise • Incorrect procedures may subject importer to civil, criminal penalties & possible seizure of imported product 3. Classification • Assignment to imported product a harmonized code number for duty determination purposes ( U. S. Harmonized Tariff Schedule or HTS ) 4. Customs Valuation • Assignment to an imported product a U. S. dollar value for duty determination purposes 5. U. S. Government Agency & C-TPAT Program • U. S. Customs & Border Protection ( Homeland Security ) • C-TPAT = joint government-trade initiative to strengthen security in company's supply chain • Benefits of joining include reduced border clearance times, reduced inspections, & expedited duties/fees processing 6. Import Compliance Program 10 • Integrating internal controls throughout clearance Xilinx Confidential process,

Key Requirements for the New System • US, Ireland, Singapore and other countries • • • 11 government rules and regulations New US Government DOS, ITAR regulations Re-export screening Auto Export license tracking and decrementing Electronic filing and email capability of Export Documents Order and shipment screening Audit Trail Xilinx Confidential

Overview of Management Dynamics/Trade collaborator application Trade Collaborator, enterprise global trade software platform, provides a single -stop solution for companies that want to grow and expand globally. Trade Collaborator Trade Export • Automates • Simplifies • Accelerates • Manages the entire export process Trade Import Trade Agreement Manages the entire import process -- pre-Customs to post-Customs. Automates the management, utilization and qualification processes necessary for businesses to participate in preferential trade agreements. Tools that support Trade Collaborator are: • Trade Documents • Scheduler • Appligent Tools • Application Connector • Business Object 12 Xilinx Confidential

Overview (Cont. II) Characteristics of Trade Collaborator: Ø Fully browser-native Ø n-Tier Capability v Database Server v Application (Business Layer) Server v Browser (Thin) Client Ø Accessibility v Intranet (LAN or WAN) v Internet (HTTP or HTTPS) 13 Xilinx Confidential

Interface With Order Management 14 Xilinx Confidential

XTCS Interfaces Data Inflow OM Sales Order 4 Message OM Shipment 5 Message CXDB OM Marketing Part 5 Message Part Xref 2 Message Transport Network Message TIB Interface Trade Compliance System (TCS) 15 Xilinx Confidential XTCS Content Updates (DPL, HTS, Export Rules etc. )

Orde rs (SO 4 ) Orde rs (Ship ment Part Classification 5) XTCS Process Flow Consolidati on Export screening Shipme nt Export screening Licensing Print/ Fax/E mail Future Requirement 16 Licensin g Govt Agency Xilinx Confidential

XTCS Interface Data Outflow Trade Compliance System (TCS) TIB interface Customs Proforma (screening result) Message B 2 B 17 Part Classification Message B 2 B Xilinx Confidential Order License Hold/Release Message OM

Project implementation Scope • Purpose: – To replace the old Trade Compliance System with new compliance system • Scope: – WW implementation of the new system included XSJ, XCO and XIR Import/Export and Compliance functions – XAP will use the system to release XAP order from hold in XTCS and/or misc. shipments 18 Xilinx Confidential

Functionality and Benefits • XTCS Functions: – Screen All Orders/Shipments (Domestic & International) in XTCS: – – – – – 19 Order screen process will place orders on hold in OM not the shipment screening process in XTCS. System Tracking & Decrementing of Valid Export Licenses Electronic Routing of Export Documentation to Freight Forwarders, Customs Brokers & Customers Provides ITAR (DOS) regulations for screening: Export requirements for state department control regulations ( we used to only screen against department of commerce) Trade Wizard – Look-up Tool to help with making decision on where we can or can not ship to, Individual screening and will give all required docs Re export screening Auto order screening Shipment consolidation Generate Export docs Auto email of docs to forwarders Auto part classification for countries other than U. S. Xilinx Confidential

Project Tasks • • • 20 Project kick off: 4/29 Design and Documentation: June Development: Completed : July Unit testing: 9/15 to 9/30 Super user training: 8/15 CRP 1: 09/19/05 -10/10/05 CRP 2: 10/10 to 10/28 UAT: 11/07 to 11/18 Go no Go: 11/23 Production cutover: 12/02 to 12/05 Go live: 12/05 Xilinx Confidential

Project Time line Finalize Vendor Contract Steering Committee Presentation Dec-05 Major Release Secure Resources Select a Vendor Budget Approval 12/15/04 21 12/23/04 Create Project Plan 01/11/05 05/1/05 Xilinx Confidential Design and Development Hardware Installation and testing 05/31/05 06/1/05 07/15/05 08/1/05 12/05/05

Lessons learned • Install and test the application based on user • • requirements before finalizing functional design Get all users involved early in the project Review before and after process flows and gaps Go over the technical check list with technical team in detail Allow enough time for: – Data mapping – Development and unit testing – Bug fixes and rework 22 Xilinx Confidential

XTCS Xilinx Demo Presented by: Michael Raj 01/24/06 Xilinx Confidential