This session will discuss the business case for automating accounts payable and a strategy for payables performance measurement. Participants will discuss key drivers of success and identify the key performance indicators (KPIs) leading finance professionals are adopting to benchmark their processes, set targets for success, and measure results against stated objectives. Innovative AP organizations have been able to extend the value of their existing ERP investments to drive a new wave of savings from process automation; dynamic discounting; contract, PO and vendor compliance; and working capital impact.

1. The Business Casefor Payables Automation © 2011 Ariba, Inc. All rights reserved.

2. Speakers Ariba Host James Tucker Speaker Belinda Cordina, Director of Procurement, Nalco 2 © 2011 Ariba, Inc. All rights reserved.

3. “ You can’t improve what you can’t measure. “ 3 © 2011 Ariba, Inc. All rights reserved.

4. Benchmark 4 © 2011 Ariba, Inc. All rights reserved.

5. Nalco Belinda Cordina, Director of Procurement © 2011 Ariba, Inc. All rights reserved.

7. When was the product shipped?

8. Quantity shipped?

9. Is the price in the purchase order right?

10. Has the vendor received the order?

11. Can the vendor meet the requested delivery date?6 © 2011 Ariba, Inc. All rights reserved.

13. Quantity matches goods received quantity

14. Easy to see and fix PO transmission failures

15. Vendor acknowledges orders

16. Vendor confirms/changes delivery date, quantity and/or price

17. Vendor confirms product shipment - Nalco invoices customer7 © 2011 Ariba, Inc. All rights reserved.

18. Nalco Business Case BENEFITS COSTS 8 © 2011 Ariba, Inc. All rights reserved.

19. Productivity Gains 40% of Customer Service Reps redeployed who were manually tracking 3rd party orders Reduction in DSO by five days Automation of late delivery notifications Reduction of blocked invoices and credit holds Reduction in scanning center fees 9 © 2011 Ariba, Inc. All rights reserved.

20. Next Steps Continuation of supplier on-boarding in North America Ramp up supplier on-boarding in Europe Customer connectivity 10 © 2011 Ariba, Inc. All rights reserved.

21. Nalco Belinda Cordina, Director of Procurement © 2011 Ariba, Inc. All rights reserved.

22. Benchmark 70% Cost Reduction $2M in Discounts per $1B $9M+ Savings per $1B 12 © 2011 Ariba, Inc. All rights reserved.

23. SELLERS BUYERS MANAGECASH Sourcing BUY Sales/Mktg. SELL Order Mgmt. Procurement Treasury/APFinance AR/Finance IT IT Ariba Collaborative Commerce Solutions TECHNOLOGY Applications Analytics Integration COMMUNITY Collaboration Partners Network CAPABILITIES Expertise Support Enablement 3rd Party Apps Business Intelligence Banks & Financing Integration 13 © 2011 Ariba, Inc. All rights reserved.

24. Network Adapter PO & Invoice Pro Extend 3rd Party Systems to All Suppliers with the Ariba Network Global supplier visibility, connectivity and collaboration Ariba Discovery Discount & Pay Pro Supplier Portal BUYERS SUPPLIERS Catalogs & Contracts 3rd Party Systems Direct MRO Catalog Punch-Out PO Automation Services NETWORK® Invoice Automation Buyer Payment Automation Indirect Banks/ACH IT 3rd Party Apps Business Intelligence Banks & Financing Integration 14 © 2011 Ariba, Inc. All rights reserved.

25. Roadmap AP Process Cost Savings Paper Based Zero - Touch Paper Free Imaging Enabled E-Invoicing Manual P-to-P Workflow PAYSTREAM FINANCIAL AUTOMATION SURVEY PAYSTREAM FINANCIAL AUTOMATION SURVEY 15 © 2011 Ariba, Inc. All rights reserved.

26. The CFO Focus: Managing Cash % of Firms Citing Strategies as Critical and Major Priorities Source: The Hackett Group 2010 Key Issues Study 16 © 2011 Ariba, Inc. All rights reserved.

27. E-Invoicing Identified as The Primary Enabler for Working Capital 17 © 2011 Ariba, Inc. All rights reserved.

29. Drive out cost while improving efficiency

30. Maximize early payment discount savingsDiscount Rate Example discount term: 2%10 Net 30 Reduce Cycle Time Days of Invoice Approval and Payment 1% 18 © 2011 Ariba, Inc. All rights reserved.

32. Dynamic Discounting

33. New Suppliers/More Spend1x “3-for-1” 19

34. Process Efficiency Drives Contract Compliance Lost Savings per $ Billion of Indirect Spend due to Contract Non-Compliance Compliance to Indirect Preferred Supplier Contract Increasing compliance rates by 10% can drive over $9 million in valueper $ billion in spend Source: Hackett Group Contract Management Survey, 2009 20 © 2011 Ariba, Inc. All rights reserved.

35. Savings Levers to Help You Build a Better Business Case $15 Million in Working Capital Impact for Every $1 Billion in Spend © 2011 Ariba, Inc. All rights reserved. 21 “ “ 70% Cost Take Out available resources “ “ 3-for-1 “ “ 9-for-1 “ “ 3-for-1 21

36. Q&A Take Action Get copy of slides – send Email request to jtucker@ariba.com Download copy of free CFO Research white paper at http://www.ariba.com/resourcelibrary Register for free Best-Practice Learning Series at www.ariba.com/programs/invoicenow– get CPE credits from IAPP Visit the Ariba Manage Cash booth James Tucker Director, Product Marketing Ariba Network & Financial Solutions Email: jtucker@ariba.com Phone: +1.650.390.1702 22 © 2011 Ariba, Inc. All rights reserved.

37. “Safe Harbor” and Confidential Information Statement This information reflects the status of Ariba solution planning as of January 2011. All such information is the Confidential Information of Ariba (per the contract between our companies), and must not be further disclosed, as stated in the confidentiality clause of that contract. This presentation contains only intended guidance and is not binding upon Ariba to any particular course of business, product strategy, and/or development. Its content is subject to change without notice. Ariba assumes no responsibility for errors or omissions in this document. Ariba shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. 23 © 2011 Ariba, Inc. All rights reserved.

38. The Business Casefor Payables Automation © 2011 Ariba, Inc. All rights reserved.