Achieving the next wave of sourcing performance requires an optimal balance of cost savings, risk mitigation and performance management. With rising inflation, global competition and tightening supply markets, online sourcing alone is not enough. In order to be competitive, organizations need to embrace a step change to make sourcing collaborative. Attend this session to learn from world-class organizations that have leveraged Ariba’s technology, capabilities and the Ariba Network to build a collaborative sourcing program and deliver sustainable savings with optimal risk mitigation and high performance.

1. © 2011 Ariba, Inc. All rights reserved. Collaborative Sourcing: Achieving the Next Wave of Sourcing Savings Sundar Kamakshisundaram - Ariba Olivier Veilhan - Bouygues Telecom Kevin McLoughlin - RBS Mike McGuigan - Elemica

2. Agenda Introduction – Opening Comments Panel Discussion Bouygues Telecom – Olivier Veilhan RBS – Steven Low Elemica – Mike McGuigan Q&A © 2011 Ariba, Inc. All rights reserved. 2

3. Collaborative Sourcing: Achieving the Next Wave of Sourcing Savings Olivier Veilhan - Bouygues Telecom © 2011 Ariba, Inc. All rights reserved.

4. © 2011 Ariba, Inc. All rights reserved. 4 Olivier VEILHAN – Bouygues Telecom Management of Purchasing IT tools & process for one year Previously managing the Mobile equipments purchasing portfolio for two years Previously, large experience in different managing activities in Network division (technical, project, business planning) within another telecom operator

6. Change management to support deployment

7. Initial feedback

8. Current situation

9. Nextsteps

10. Q & A5 © 2011 Ariba, Inc. All rights reserved.

12. Creation of company: October 1994

13. Commercial launch: 29May 1996

14. Acquisition of fixed network: 1 July 2008

15. Key figures

16. 11,084,000 mobile customers (end December 2010)

17. 808,000 fixed broadband customers (end December 2010)

18. 9,200 employees (end 2010)

19. 5.636 billion eurossales in 2010

20. Ownership structure 10.5% 89.5% 6 © 2011 Ariba, Inc. All rights reserved.

21. Financial Data Sales Net investments Net profit 2008 2009 2008 2009 2010 2008 2009 2010 2010 (€ million) © 2011 Ariba, Inc. All rights reserved. 7

22. Purchasing Organisation Over 2 B€ ordered in 2010 80 people in purchasing organisation 8 © 2011 Ariba, Inc. All rights reserved.

24. No on-line Sourcing tools

25. Heterogeneous process of sourcing in differentpurchasingentities

26. Our Choice: Ariba On-Demand : Sourcing, Supplier, Contract

27. Planning: 7 months to choose – 4 months to implement12/09 06/10 09/10 12/10 12/10 9 © 2011 Ariba, Inc. All rights reserved.

29. FAQ, Forum

30. Training manuals10 © 2011 Ariba, Inc. All rights reserved.

32. Creation of first sourcingevent in the platformtakes time and represents the major step to beclimbed by the buyer!

33. The 2-day initial training wasconsidered as not sufficient by the buyers to be confident enough and autonomous. Difficultywaswehad to explain the processimplemented in the tool and the toolitself

34. Management implication ismandatory to the adoption

35. Individual objectives provided by the manager

36. And Manager must betrainedtoo!

37. Be precautionneslyambitious, proceedstep by step

38. Keepit simple (supplier informations)

39. You’llneed adaptation phases of yourimplementation (NDA – one-2-one deal ...)11 © 2011 Ariba, Inc. All rights reserved.

42. Utilisation Progression to DATE Réalité aujourd’hui Objectif 2 011 Ces étapes sont indicatives et représentatives des services a disposition. en aucun cas chaque fonctionnalité est obligatoire. 13 © 2011 Ariba, Inc. All rights reserved.

44. Progressive use of advancedfeatures

45. Definition and implementation of Contracts Module

46. Analysis of implementation of other modules:

47. SpendAnalysis

48. Technical assistance, Interim14 © 2011 Ariba, Inc. All rights reserved.

49. © 2010 Ariba, Inc. All rights reserved. Collaborative Sourcing: Driving Next Level of Savings Kevin McLoughlin Global Team Leader - eSourcing Royal Bank of Scotland

50. © 2010 Ariba, Inc. All rights reserved. 16 Kevin McLoughlin Global Team Leader – eSourcing eAuction expert introduced new approaches at RBS to manage online bids for unique category areas 5 years eSourcing/Purchasing experience at RBS 8 years utilities purchasing prior to RBS Developed utilities eSourcing tool for Western European Markets

51. © 2010 Ariba, Inc. All rights reserved. 17 Royal Bank of Scotland The Royal Bank of Scotland Group, founded in 1727, with a footprint of over 40 million customers using the financial services of over 30 brands around the world. The Group has identified a clear strategic vision for delivery by 2013. This will be achieved by executing our strategic plan, progress against which can be measured quarter by quarter using our key performance indicators. RBS 2013 strategic vision To be amongst the world's most admired, valuable and stable universal banks, powered by market-leading businesses in large customer-driven markets To return >15% sustainable RoEs, from a stable AA category risk profile and balance sheet The business mix to produce an attractive blend of profitability and moderate but sustainable growth - anchored in the UK and in retail and commercial banking together with customer driven wholesale banking, and with credible growth prospects geographically and by business line Management hallmarks to include an open, investor-friendly approach, strategic discipline and proven execution effectiveness, strong risk management and a central focus on the customer

52. © 2010 Ariba, Inc. All rights reserved. 18 Top problems that drove a change: What is your ERP environment: 50+ Purchasing Systems Globally Implementing Global Suite to consolidate estate and provide consistency (3 year programme) Ariba to remain eSourcing tool of choice – integration points with Financial suite to be configured Problems faced that drove change initiative: Comprehensive Strategic Sourcing Approach in place – desire to take it to ‘next level’ Auditability of Sourcing activities is easier with online approaches/tools In pursuit of Continuous Improvement on Sourcing approaches/tools/techniques Cycle-Time for Sourcing Activities needs to be continuously shortened RBS becoming global and tools need to help ensure global reach Cost / Impact of Problems: Possibility for inconsistent approaches when conducted offline Duplication of Sourcing Activities (through lack of visibility) means paying more for less. Lack of leverage Manually intensive processes to support Sourcing. Strain on budget Maverick spend difficult to find and control Who owned solving these? Executive Sponsorship (key!) helped shape the proposition to the department Category Heads and Team Leads tasked with ensuring Adoption to new tools and processes eSourcing Deployment team built along with Ariba Implementation resource to configure and customise solution Training initially owned by Deployment Team – now with BAU owners of data On-site Ariba Events consultancy initially with move in past few years to be internal resource

53. © 2010 Ariba, Inc. All rights reserved. 19 Selecting a Solution When did you begin: Free-markets during 2001 - 2004 acquired by Ariba 2005 RBS Sourcing Platform launched end 2005. What solution did you select: All ‘upstream’ modules from Ariba (ACW, ACM, SPM and Analysis/Spend Vis). Ariba Buyer considered for P2P replacement but not chosen as legacy systems replacement in 2010 due to requirements for replacement GL, FA modules Why did you select Ariba: Best of Breed Sourcing module Ability to customise solution to fit RBS processes Strong implementation and Consultancy expertise Competitive pricing for Software. Hosted by Ariba (until 2010)

54. © 2010 Ariba, Inc. All rights reserved. 20 What have been your results eSourcing (Strategic Auction Programme) All RFIs and RFPs via Ariba (500+ per annum) 500+ Auctions since 2001 (Focus on Total Cost and Commitment to first place) £10bn contracts value eAuctioned Average Auction value £20m (Mostly strategic but transactional event growth in 2010 & 2011) 2011 run rate 150 Auctions per annum RFP to Auction Conversion rate 30% ACM (Category and Process Management) Fully automated workflow that provides ‘one stop shop’ for Buyers Links to RFI, Workflow, Benefits Tracking, Contracts and guidelines all within Project ACW (Contract Management) All global contracts stored in ACW. Customised to build Chinese walls between groups of contracts. Not using Contract Authoring at this point – still to fully see value Analysis (Spend Visibility) Spend Visibility run on quarterly basis capturing 97% of our global spend on a quarterly basis. Using Ariba Enrichment Services (since 2006) SPM (Supplier Performance Management) Run Yearly Annual Vendor Performance Assessment through SPM – 2,500 participants, 200+ Vendors Fully automated scorecards, graphs and reports to generate VPA Presentations that are used for creation of Supplier Improvement Plan

55. © Elemica Inc. All rights reserved. Global Sourcing Collaboration and AggregationUntapped Global Value Mike McGuigan Chief Executive Officer Elemica Inc.

56. © Elemica Inc. All rights reserved. 22 Mike McGuigan Bio Mike McGuigan was named President and Chief Executive Officer of Elemica in June 2005. ( www.elemica.com ) Member of the Elemica Board of Directors since September 2002 and was Chairman of the Board from January ‘04 - June ‘05. Mr. McGuigan held a number of senior positions with BP, initially in business management and strategic planning within the Chemicals business in the UK, Switzerland and Germany. This was followed by management assignments within the Downstream Retail business in the UK and USA. His position prior to joining Elemica was as Global Commercial Director for BP Chemicals. Mike McGuigan earned a Bachelor of Science degree in Mathematics with Statistics from the University of Bristol (England).

58. Greater than $60 Billion of transactions handled annually through Elemica Solutions

59. Global presence with offices in Atlanta, Amsterdam, Frankfurt, London, Seoul, Shanghai, Singapore, and Tokyo. Global Headquarters in Exton, Pennsylvania.

60. More than 3000 companies connected through the Elemica Connected Solution supporting a wide range of industries.© Elemica Inc. All rights reserved.

62. More efficient

63. More profitable© Elemica Inc. All rights reserved.

64. Sourcing - The opportunity with Elemica We deliver untapped sourcing cost savings Our clients typically focus on direct materials, larger individual spends Elemica Sourcing Works closely with our clients’ procurement employees Using best in class technology and experienced people To deliver savings on indirect services and materials For example - MRO, logistics, capital equipment Elemica’s offer is unique Average saving 10% (client reported) Over $25 billion managed spend Easy start-up, simple pricing for rapid client returns 25 © Elemica Inc. All rights reserved.

65. 26 Selecting and Implementing a solution Searching for a partner that would offer a strong e-Business solution Definition of requirements: Global, Multilingual, easily Accessible, Flexible, Secure, Reliable and Cost Effective Went through market assessment globally, identification, assessing and testing Guarantee Individual secured environment for each Elemica business partner Possibility to do big bang Global implementation Elemica Sourcing Organization Decision : Solution provider and sourcing tool needed to address all Elemica’s customer needs Had to be cost effective and provide the possibility to enable customer sourcing collaboration within their own organization at country, regional and global levels as well as with other external organizations Selection of Ariba Sourcing Professional on Demand: Provided the possibility to address the need of having individual environments for each Elemica customer with the ability to standardize the setup among all of the users Very fast implementation and transfer of information from legacy systems Flexibility on specific parameter setting at the application level as well as all other levels in the solution Features portfolio, from simple reverse and forward auctions to very complex matrix and formula based events. © Elemica Inc. All rights reserved.

67. Spend under management

68. From $600M in 2003 to over $2.7 billion in 2010

69. Savings out of sourcing activities, spend under management

70. From $25M in 2003 (4% on base line spend) to over $250M in 2010 (9.3% on base line spend)

71. Number of sourcing events executed

72. From 535 in 2003 to over 2,500 in 2010

73. Aggregation / Collaboration projects increase not only in number but also in spend levels

74. Sourcing category strategies included globally through standardization of templates and processes.

75. All regions participating, All categories (from cleaning services to aircraft)

76. In approx. 72% of the sourcing events the sourcing manager use knowledge out of the sourcing application, reducing the sourcing cycle time by 50%

77. Collaborative and Aggregations in sourcing:

78. Multi-Customer aggregations increased in size and value:

79. Total spend on collaboration & aggregation projects reached $1.3 billion

80. Average savings over 14.5%

81. Categories in scope have extend to Transportation & Logistics, Warehousing, IT & telecom equipment, Utilities, Facilities Management© Elemica Inc. All rights reserved.

82. 28 Lessons Learned Some of the learning in the process: e-business solutions and an integrated supply chain work It makes your business better - More reliable, More efficient, More Profitable Software tools are a critical part of the solution, you need to work with Global Subject Matter Experts such as Elemica to get the best productivity benefit Selecting the right business partner is critical, particularly when programs have global scope , or seek to transform the organization’s processes and operations. It is easy to get started – one event or many events can be initiated extremely easily. It does not take a major software implementation. It does not take a major change program. The savings keep on coming. Even with the successes of the last ten years, Elemica continues to find major savings opportunities for our customers. © Elemica Inc. All rights reserved.

83. Q & A © 2010 Ariba, Inc. All rights reserved. 29

84. 30

85. “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. © 2011 Ariba, Inc. All rights reserved. 31

86. © 2011 Ariba, Inc. All rights reserved. Collaborative Sourcing: Achieving the Next Wave of Sourcing Savings Sundar Kamakshisundaram - Ariba Olivier Veilhan - Bouygues Telecom Steven Low - RBS Mike McGuigan - Elemica