www.ariba.com

What is ARIBA?

B2B E-Commerce A leading B2B E-procurement software

platform and software provider E-Procurement Net Marketplace

E-procurement Markets

Ariba’s E-Procurement Net Marketplace

ARIBA Product & Service

ARIBA Product & Service

Spend visibility Solution Ariba Analysis Ariba Data Enrichment Ariba Spend visibility

Sourcing Solution Ariba Sourcing Ariba Supplier Performance Management Ariba Category Management Ariba Sourcing On-Demand

ARIBA Product & Service

Contract management Ariba buyer application Ariba Category Procurement Ariba Travel and Expense Ariba Procure-To-Pay

Procurement and Expense Ariba Contract Workbench Ariba Contract Compliance Ariba Contract management

ARIBA Product & Service

Invoice and payment Ariba Invoice Presentment Payment

Supplier management Ariba Supplier Connectivity Ariba Supplier Network

Process Solution Benefit

Procurement Processes Automated and streamlined its procurement processes

Considerable time savings and a more than 60% reduction in costs of processing purchase requisitions

Supplier Consolidation Consolidated suppliers using Ariba buyer

Provided necessary information for renegotiation of volume discount agreements

SOLUTION EXAMPLE

ARIBA – Customer’s Industry

Automotive Banking Business Services

/Consulting CPG Cement Chemicals Computer Software &

Services Construction Education Energy High Tech

Construction Materials Distribution/Wholesale

Engineering, Scientific & CAD/CAM Software

Federal Government Finance/Accounting

Food, Beverage & Tobacco Health Care Services Transaction, Credit & Collections Technology Manufacturer/Developer

Leisure Manufacturing Media

Pharmaceutical Retail Telecommunication

s Consumer Products Transportation

ARIBA’s Vision

“To become the leading provider of Spend Management Solutions, which are Software and Service to help manage what they want”

Business Model

Originally Web-based Licensing and Maintenance Fee

For buyer Reduction in Procurement cost, Supply Cost, Error Faster acquisition cycle

For Supplier Reduction in selling cost Faster payment Access to purchasing power of large firm

Built Ariba Supplier Network Charge fee based on transaction value among trading

partner Cisco e-Procurement

Shift to Web-based On-Demand Software Solution

Subscription and maintenance Fee

Value Proposition

Spend Management Solution , it delivers; Speed Sustainability Coverage Flexibility

Strategic – Business Strategies Related-Business Acquisition

Alliente : A provider of business process outsourcing

FreeMarkets : One of the largest operator of independent Net Marketplace or Exchanges

Softface : Expertise in spending analysis, catalogs and contract management

Competitor Acquisition Procurri : Reach “Middle Market”

Strategic – Competition

Direct (Pure Web-based eProcurement) Emptoris Ketera Technologies Verticalnet Frictionless Commerce Commerce One

Large ERP company (Business Software Solution) SAP Oracle

Competitive advantage

Top challenges Actual & planned

users Suppliers enabled Transaction volume Spend under

management

Requisition-to-PO cycle cost

Requisition-to-PO cycle time

Provider satisfaction Software functionality

Reference © 2006 AberdeenGroup, Inc. Publish December 22, 2006

Strategic – Alliance

IBM and i2Technologies Develop solution for specific customer

EpylonTo develop an integrated platform specifically

designed to meet the needs of public sector procurement.

ClearCross To provide total landed cost calculation

services on the Ariba B2B Commerce Platform.

Strategic – Alliance

Business Process Outsourcing Partners

Reseller Partners

Strategic – Alliance

Consulting and Solution Provider Partners

Strategic – Alliance

Technology and Product Partners

Strategic – Technology

ARIBA cXML-PunchOut Allow a buyer to access a supplier's Web

site from within the buyer's own procurement application

For Example, Cisco ePurcurement to enable Cisco buyer to order Cisco products via buyer’s Ariba application

Strategic – Social and legal Challenges

Sued by Share Holder in FreeMarkets acquisition

Patent infringement ePlus inc. Vs Ariba

Ariba Buyer Ariba Marketplace Ariba Category Procurement

Sky Vs Ariba Emptoris Vs Ariba

Financial 2000-2010 stock price

Financial 2010 stock price

Financial Period Ending 30-Sep-09 30-Sep-08 30-Sep-07

Total Revenue 338,972 328,060 301,667

Cost of revenue 128,922 148,534 161,398

Gross Profit (A) 210,050 179,526 140,269

Operating Expense

R&D 43,483 52,270 51,159

Selling General & Administrative

139,501 159,753 133,684

Non Recurring 10,837 15,442 (17,758)

Other 755 739 525

Total Operating Expense (B) 194,576 228,204 167,610

Operating Income (A-B) 15,474 (48,678) (27,341)

Income from Continuing Operations

Total Other income/ Expense Net

- 8,359 14,301

Earning Before interest and Taxes

9,419 (40,319) (13,040)

Interest Expense - - -

Income before Tax 9,419 (40,319) (13,040)

Income Tax Expense 1,226 743 1,937

Net Income from continuing Ops

8193 (41,062) (14,977)

Net Income 8193 (41,062) (14,977)

Future Prospects

Expansion Consulting Service More acquisition Strong Competition from software firm

such as SAP and Oracle Acquisition target for larger technology

firm

Suggestion

Long Tail Expand in “Middle to Lower market” Software customization B2C to become personal management

Global Firm Support for all foreign currency Expand to Asia-Pacific supplier and buyer Cover all business industries