Supplier Central TM Executive Overview September 17, 2009 Jon Bovit, VP of Marketing & Strategy

2008 and Beyond Supplier Management Becomes Boardroom Issue / / THE WALL STREET JOURNAL China Plant Produced Key Ingredient for Baxter’s Heparin GM Sues Bankrupt Supplier for Access to Parts MasterCard, Visa Notifying Consumers of Possible Security Breach Supplier Bankruptcy Forces Chrysler Plant Closures By Corey Willims, Associated Press Writer Satyam: A Timely Warning for Outsourcing Customers Protect Your Company Against Outsourcing Supplier Instability By Michael Murphy, Joshua B. Konvisser, Vipul N. Nishawala and Jonathan D. Butler Lenovo to Recall 526,000 Notebook Batteries The battery problem keeps exploding Recalls of Chinese Auto Parts are a Mounting Concern Lead Paint Prompts Mattel to Recall 96,7000 Toys Published: August 2, 2007 © 2009 CVM Solutions Confidential Pfizer Blighted by Viracept Scare

Mattel Case Study An Important Lesson about Supplier Risks / / Lead Paint Prompts Mattel to Recall 967,000 Toys Published: August 2, 2007 2006 Oct 2007 Apr Jul Oct 2008 Apr Jul Oct 12 14 16 18 20 22 24 26 28 Dec 10, 2008: MAT 14.96 @ 2008 Yahoo! Inc. © 2009 CVM Solutions Confidential Mattel to pay $12 million settlement for lead toys Posted: 9:23 PM Dec 15, 2008 $12M Settlement Continued Recalls First News of Lead Paint on Toys

What is Supplier Management? Post-contract Supplier Processes Accounts Payable Enablement Qualification & Compliance Management Scorecards Tier 2+ Analysis Supplier Diversity Risk Management / / Pre-contract Supplier Processes Strategy Requirements Gathering Sourcing Process Contract Management Process Spend Analysis Request Management Supplier Management Processes © 2009 CVM Solutions Confidential 1 2 3 All supplier information centrally available to all people, processes, and systems that “touch” suppliers Manage compliance and risk Goal is to reach 100% “suppliers under management”

Post-contract Supplier

Processes

Accounts Payable Enablement

Qualification & Compliance Management

Scorecards

Tier 2+ Analysis

Supplier Diversity

Risk Management

Pre-contract Supplier

Processes

Strategy

Requirements Gathering

Sourcing Process

Contract Management Process

Spend Analysis

Request Management

Where is the Problem? Over Time, Supplier Management Needs Grow Supplier DBs 1 to 5 Applications 10 Excel Spreadsheets 20%+ “out of date” Marginal Cost per Supplier 100s of Suppliers / / Supplier DBs 5 to 20 Applications 100 Excel Spreadsheets 40%+ “out of date” 3X+ Cost per Supplier 1000s of Suppliers Supplier DBs 20 to100 Applications 1000 Excel Spreadsheets 60%+ “out of date” 20X+ Cost per Supplier 100Ks of Suppliers Costs Rise Over Time Data Quality Degrades Risk and Uncertainty Increase Supply Chain Complexity Increases Problem Gets Worse Over Time © 2009 CVM Solutions Confidential 1 2 3 4

Supplier DBs

1 to 5 Applications

10 Excel Spreadsheets

20%+ “out of date”

Marginal Cost per Supplier

100s of Suppliers

Supplier DBs

5 to 20 Applications

100 Excel Spreadsheets

40%+ “out of date”

3X+ Cost per Supplier

1000s of Suppliers

Supplier DBs

20 to100 Applications

1000 Excel Spreadsheets

60%+ “out of date”

20X+ Cost per Supplier

100Ks of Suppliers

What are the Current Issues? Different Groups have Different Needs How much am I spending with each supplier and by category? How much contract leakage do I have? How do I find new potential suppliers? How do I handle all the requests? / / How do I measure and compare supplier performance? How do I track supplier qualifications and compliance? How do I audit suppliers? How do I assess and monitor supplier risk? How do I manage my programs? How do I ensure participation? How do I ensure accuracy? How do we currently add/change suppliers? How do I engage all suppliers to provide all required information? How do I process changes? How do I ensure accuracy and results? Diversity AP Risk Mgt Procurement Sourcing Sustainability Supply Chain Finance © 2009 CVM Solutions Confidential

How much am I spending with each supplier and by category?

How much contract leakage do I have?

How do I find new potential suppliers?

How do I handle all the requests?

How do I measure and compare supplier performance?

How do I track supplier qualifications and compliance?

How do I audit suppliers?

How do I assess and monitor supplier risk?

How do I manage my programs?

How do I ensure participation?

How do I ensure accuracy?

How do we currently add/change suppliers?

How do I engage all suppliers to provide all required information?

How do I process changes?

How do I ensure accuracy and results?

Get All Your Suppliers Under Management… “Total Suppliers Under Management” Governance, Risk, and Compliance Highest Potential Impact High Collaboration / / Strategic Tactical Transactional Strong Business Impact Manage Compliance Manage Risk Self-service Data Quality Process Controls Spend Controls Central Supplier Repository Strategy & Planning 100% of Suppliers Under Management Source & Contract Evaluate & Assess Manage & Maintain © 2009 CVM Solutions Confidential

Governance, Risk, and Compliance

Highest Potential Impact

High Collaboration

Strong Business Impact

Manage Compliance

Manage Risk

Self-service

Data Quality

Process Controls

Spend Controls

Supplier Management Process Where are the Supplier Risk & Performance Impacts? / / Manage and Maintain Evaluate and Assess Strategy and Planning Source and Contract Capable Suppliers Available Suppliers Market Conditions Risk Planning Customer Demand Financial Due Diligence Security Due Diligence Define Overall Risk Profile Contract Terms Risk Define Assessment Team Performance Scorecard Quarterly Risk Assessments Corrective Action Planning Risk Mitigation Execution Supplier Audits EPA and Regulatory Compliance Risk Mitigation Planning On-boarding and Data Gathering Financial Assessment Including Liens, Judgments Insurance Verification OFAC and Debarment Review OSHA Violation History © 2009 CVM Solutions Confidential

Supplier Risk It’s Not Just about Credit Rating Anymore Are your suppliers under financial stress? Can they perform? / / 1 3 4 5 2 6 7 Do your suppliers carry sufficient insurance? Is my confidential information secure? Continuity for disasters? Are suppliers meeting your expectation on delivery, cost, quality, scale? Do your suppliers have the necessary certifications? SOX? US Patriot Act? Do your suppliers meet your safety standards? Does a suppliers’ failure pose risk to your production? © 2009 CVM Solutions Confidential

Are your suppliers under financial stress? Can they perform?

How Many People do I need to Manage Suppliers & Risk? © 2009 CVM Solutions Confidential / / 1 Too many specialties required! How can we manage it alone? 2

Supplier Risks Increase Across Supplier Tiers Supplier risks become magnified Supplier risks can be hidden How can overall supplier risk be measured? © 2009 CVM Solutions Confidential / / Your Organization Business Unit2 Business Unit1 Tier1 Supplier Tier1 Supplier Tier1 Supplier Tier1 Supplier Tier2 Supplier Tier2 Supplier Tier2 Supplier Tier2 Supplier Tier2 Supplier Tier2 Supplier Tier2 Supplier Tier2 Supplier Tier2 Supplier Tier2 Supplier Tier2 Supplier

Supplier risks become magnified

Supplier risks can be hidden

How can overall supplier risk be measured?

What does it Cost to Manage a Supplier? / / Total Supplier Management Costs Risk Direct Costs Data Mgt Costs Systems Costs Communication Costs Brand Risk Supply Disruption Fines, Legal Process Costs Source & Procure Process Costs AP Process Costs Other Groups Costs *Calculation based on CAPS Research Benchmarks Spend Related Savings Non-Contract Addressable Spend Spend Leakage e.g. $500+ per Supplier per year* $300 per Supplier per year $1M+ per Incident** $200 per Supplier per year $1M+ per year **A. T. Kearney estimates $10M to $34M per bankruptcy © 2009 CVM Solutions Confidential

Business Challenges Addressed by Supplier Data Services © 2009 CVM Solutions Confidential Business Problem Problem Description Example Data Accuracy & Quality Supplier data becomes out of date over time causing processing errors Purchasing system had one supplier location address and AP system had another. Caused delayed invoice processing and rework. Data Redundancy Duplicate suppliers and misclassified locations causing rework, wasted time, and resources Cost one CVM customer $20 to audit each supplier. Our data enrichment helped remove around 10K duplicate records – saving them around $200K is savings. Spend Misclassification Correctly collating, grouping, and categorizing suppliers is required for accurate spend analysis Currently have separate independent contracts with IBM, Tivoli, and Lotus without realizing they are all IBM. Allows renegotiating for better contract terms and discounts. Risk Identification Risk of fraud and supply chain disruption can occur without required and accurate supplier data One CVM customer identified potential supplier safety issues and missing insurance certificates. Lowered risks.

Supplier Data Enrichment The First Step in Enterprise Supplier Management Journey Cannot manage suppliers without clean, quality, and up-to-date data © 2009 CVM Solutions /Confidential / / Best practice says start with data enrichment before deploying supplier portals and other projects Halt the perpetuation of bad data across the enterprise

Cannot manage suppliers without clean, quality, and up-to-date data

Best practice says start with data enrichment before deploying supplier portals and other projects

Halt the perpetuation of bad data across the enterprise

Supplier Management Critical Requirements What do you Need to be Successful? / / Supplier Support Services Easy Engagement Model (Self-service) Supplier Self-service Portal Accurate, Validate, and Enriched Enterprise Supplier Data Supplier Management Process Automation Framework Supplier Risk and Compliance Management Supplier Diversity and CSR Management Scorecards, Performance, and Contract Management Accurate, Validate, and Enriched Supplier Diversity Data Supplier Risk Data Tier 2 Supplier Data Supplier On-boarding Services Supplier Diversity Program Management SPM Program Management Supplier Risk Assessment Service Technology Requirements Integration, Security, Workflow, etc. Data Requirements Services Requirements © 2009 CVM Solutions Confidential

Supplier Support

Services

Easy Engagement Model (Self-service)

/ / © 2009 CVM Solutions Confidential

CVM Corporate Overview / / © 2009 CVM Solutions Confidential Year Founded 2002 Employees 100+ Customers 350+ Number of New Clients 2008 80+ Total Suppliers Under Management 4.3M+ and growing Largest Provider of Supplier Management Solutions Since 2007 Company Growth 2008 growth of 30% with 180% growth over the last three years

CVM Leadership in Supplier Management 49% of the 2008 Fortune 100 use CVM 51% of the 2009 DiversityInc Top 100 use CVM #1 in supplier management portals deployments #1 in supplier diversity / / © 2009 CVM Solutions Confidential

49% of the 2008 Fortune 100 use CVM

51% of the 2009 DiversityInc Top 100 use CVM

#1 in supplier management portals deployments

#1 in supplier diversity

CVM Solution Overview CVM Supplier Central TM 6.0 redefines the next generation supplier management platform combining technology, data, and managed services into a one-stop shop for customer supplier management needs. With the release of 6.0, CVM has focused on 4 main areas: Lowering Costs Mitigating Supplier Risk Industry Focus Next Generation CVM Master Supplier Database / / TM © 2009 CVM Solutions Confidential

CVM Supplier Central TM 6.0 redefines the next generation supplier management platform combining technology, data, and managed services into a one-stop shop for customer supplier management needs.

With the release of 6.0, CVM has focused on 4 main areas:

Lowering Costs

Mitigating Supplier Risk

Industry Focus

Next Generation CVM Master Supplier Database

CVM Targeted Solutions Overview Vendor Master Management Supplier Risk Management Supplier Performance Management Supplier Diversity Management © 2009 CVM Solutions Confidential 1 2 3 4 CVM Supplier Central TM Enterprise Supplier Management

Supplier Risk Solution Lifecycle © 2009 CVM Solutions Confidential / /

CVM Risk Solutions in the News © 2009 CVM Solutions Confidential / /

CVM Master Database – Data Elements Summary © 2009 CVM Solutions /Confidential / / Firmographic Information Name, address, telephone Contact information Revenues Employees Commodity Information SIC codes NAICS codes Corporate Linkage Parent/child Location/headquarters Joint ventures Diversity Information Certificates Expiration dates Ethnicity

Name, address, telephone

Contact information

Revenues

Employees

SIC codes

NAICS codes

Parent/child

Location/headquarters

Joint ventures

Certificates

Expiration dates

Ethnicity

Before CVM Data Enrichment and After © 2009 CVM Solutions Confidential / / Before After

Why Use CVM for Supplier Data Services? © 2009 CVM Solutions Confidential / / Unique Data Unique Approach Supplier Focus

CVM Unique Data CVM knows which suppliers are the most important to the F1000 and large organizations CVM combines the best data sources to create the most accurate supplier database in the industry All supplier data adds/updates go through a strict process before being added to the CVM Master Database © 2009 CVM Solutions Confidential / / Analyze & Verify Quality Assurance Match Release to Production Collect Add or Update

CVM knows which suppliers are the most important to the F1000 and large organizations

CVM combines the best data sources to create the most accurate supplier database in the industry

All supplier data adds/updates go through a strict process before being added to the CVM Master Database

CVM Unique Approach and Process High target service levels: Strategic Suppliers: 95%+ Tactical Suppliers: 90%+ Transactional Suppliers: 80%+ CVM’s QA process performs both a match and data accuracy verification on records we evaluate Value-added Executive Summary Reports Ensure data is delivered in proper format and is usable (i.e. loads, etc.) by the customer Identify potential new diversity suppliers to maximize diversity spend capture © 2009 CVM Solutions Confidential / / Initiation and Acquisition Quality Assurance Auto Match Cleanse Report and Delivery

High target service levels:

Strategic Suppliers: 95%+

Tactical Suppliers: 90%+

Transactional Suppliers: 80%+

CVM’s QA process performs both a match and data accuracy verification on records we evaluate

Value-added Executive Summary Reports

Ensure data is delivered in proper format and is usable (i.e. loads, etc.) by the customer

Identify potential new diversity suppliers to maximize diversity spend capture

CVM Focused on Supplier Management It’s All We Do Focusing only on supplier data allows CVM to gain deep understanding and expertise with gathering, analyzing, and supporting supplier data projects CVM understands the priorities and needs of procurement, sourcing, compliance, risk, diversity, and supply management organizations © 2009 CVM Solutions Confidential / /

Focusing only on supplier data allows CVM to gain deep understanding and expertise with gathering, analyzing, and supporting supplier data projects

CVM understands the priorities and needs of procurement, sourcing, compliance, risk, diversity, and supply management organizations

Why CVM Solutions for Supplier Management? Proven delivery of Tier 2 programs / / Suppliers Beyond Tier 1 Easy Supplier Engagement Model Accurate and Validated Supplier Data Supplier Data Enrichment Services Supplier Management Process Automation Fast, Easy and Cost Effective Deployment Technology, data, and managed services for Tier 2 Supplier self-service portal Supplier focused wizards and up-front data validation Existing large supplier database Proven data quality and cleaning processes Risk assessment and supplier diversity services Supplier data enrichment with corporate linkage Sourcing request management Workflow and business process management Implementation measured in days and not months Proven delivery of managed services Proactive supplier follow-up and hand-holding Regular data refreshes and re-validation Business rules © 2009 CVM Solutions Confidential

Proven delivery of Tier 2 programs

Technology, data, and managed services for Tier 2

Supplier self-service portal

Supplier focused wizards and up-front data validation

Existing large supplier database

Proven data quality and cleaning processes

Risk assessment and supplier diversity services

Supplier data enrichment with corporate linkage

Sourcing request management

Workflow and business process management

Implementation measured in days and not months

Proven delivery of managed services

Proactive supplier follow-up and hand-holding

Regular data refreshes and re-validation

Business rules