<Insert Picture Here>

Oracle Industry Solutions For Mining

Judy Hamlin

Industry Principal

SAFE HARBOR STATEMENT

The following is intended to outline our general

product direction. It is intended for information

purposes only, and may not be incorporated into any

contract. It is not a commitment to deliver any

material, code, or functionality, and should not be

relied upon in making purchasing decisions.

The development, release, and timing of any

features or functionality described for Oracle’s

products remains at the sole discretion of Oracle.

3

<Insert Picture Here>

Agenda

• Oracle’s Industry Position

• Industry Business Drivers

• Oracle’s Solutions

4

<Insert Picture Here>

Oracle’s Industry Position

5

Natural Resources

Use Oracle Applications to Run Their Business

Use Oracle Applications to Run Their Business

Use Oracle Applications to Run Their Business

Use Oracle Applications to Run Their Business

4 of the Top 10 Coal Mining Companies

4 of the Top 10 Coal Mining Companies

4 of the Top 7 Steel

Companies

4 of the Top 7 Steel

Companies

4 of the top 8 Metals

Mining Companies

4 of the top 8 Metals

Mining CompaniesUse Oracle Applications to Run Their Business

Use Oracle Applications to Run Their Business

4 of the top 10 Gold &

Silver Mining

Companies

4 of the top 10 Gold &

Silver Mining

Companies

Use Oracle Applications to Run Their Business

Use Oracle Applications to Run Their Business

6

Key Natural Resource Customers

� 4 of the Top 8 Metal Mining Companies

� 4 of the Top 7 Steel Companies

7

Oracle Market Position – Mining

4 of the top 10 Coal Mining

Companies run Oracle Applications

4 of the top 10 Gold and Silver

Chemical Companies run Oracle

Applications

4 of the top 10 Metal Mining

Companies run Oracle Applications

“The new Oracle tools give Solid Energy the functionality we need to make better

decisions about overhaul and replacement of assets, preventive maintenance

routines, and rationalization of spare parts and rotables. By ensuring we have

accurate records of maintenance and expenditure on assets, we can determine the

condition of assets at any given time and identify a poorly designed plant so it can

be redesigned.”

-- Warren Maslin, Chief Financial Officer, Solid Energy

Strong Mining application footprintEAM, Process Mfg., Distribution,

Fuels, Supply Chain, Projects,

etc.

Oracle has the lowest Total Cost of Ownership…

Software

Hardware

Professional Services

…Fastest speed to implementation……And Provides the shortest time to benefit realization

…And Oracle Has A Strong Value Proposition For Them

Oracle Is Committed To Mining Companies…

8

Oracle Customers – Mining

“The new Oracle tools give Solid Energy the

functionality we need to make better decisions

about overhaul and replacement of assets, preventive maintenance routines, and rationalization of spare parts and rotables. By ensuring we have accurate records of maintenance and expenditure on assets,

we can determine the condition of assets at any given time and identify a poorly designed plant so it can be redesigned.”

-- Warren Maslin, Chief Financial Officer

“JD Edwards (now Oracle) significantlylowered our operating costs, improved

our efficiency, Helped us face the challenges posed by technologies and also facilitated

smooth execution of our exports. The net effect has been An improvement of quality and the reduction of costs.”

-- Nayan Pansare, Chief Financial Controller

9

� $23B world’s leading producer of aluminum

• Includes manufacturing, mining and utility operations

• 39 countries, 350 manufacturing plants, 127K employees

� Live on 11i at 57 sites

• Discrete & Process Manufacturing, Order Mgmt, Configurator,

iProcurement, Supply Chain Planning, Financials, HR, Enterprise Asset

Mgmt, Project Costing

• Design partner for Enterprise Asset Management

• 10K users performing 55K concurrent requests per day

� Realized Business Benefits• Implemented requisition-to-pay solution 20% below projected cost• Reduced accounts payable transaction processing costs by 89%• Increased use of online procurement tool by 295%• Drastically reduced req-to-pay cycle times• Converted more than 10,000 monthly paper check payments to electronic• Enabled acquired company to be integrated in 120 days

� Expected Business Benefits

• 25% inventory reduction• 15% productivity increase• 5% material cost savings• 15% cycle time reduction

• 20% improvement in customer service

Customer Success Story

10

Oracle Proven Results Sample in Natural Resources

Implemented new global business processes and standardized

Multiple28 MonthsGlobal Single Instance

E-business suite

Posco

47 Sites

Multiple mine sites rolling out to HQ

North America (Coal Line & Power Plant )

Global single instance

Global

Implementing order-to-cash (25 sites live), Enterprise Asset Management (7 sites live) and Human Resource

43 legacy Procurement & Finance systems

7 months*E-business suite; Strategic Network Optimization

Alcoa

Mine site implemented as phase 1, head office to follow

Legacy system, standalone procurement & maintenance systems, some new

24 monthsE-business suite

Barrick

On time and under budget

Legacy22 weeksE-business suite

Deseret Power

Deployed Oracle Balanced Scorecard for management information

Upgrade Oracle & legacy, standalone procurement & maintenanceSystems

6 monthsE-business suite

Solid Energy

NotesSystems ReplacedTimelineScope

11

<Insert Picture Here>

Industry Business Drivers

12

Key Natural Resource Drivers

Industry Consolidation

• Merger and acquisition activity increasing along with joint venture activity

• Disparate systems result in high maintenance costs and poor access to corporate-wide information

• Need to be able to assimilate new acquisitions quickly

Globalization

• Customers, supply chain, and competition have all become global

• Additional functional and business process requirements

• New governmental and compliance issues

Escalating Cost Pressures

• Energy, labor and raw material prices impacting return on capital

• Need to improve operational effectiveness for supply chain planning, transportation, procurement and capital projects.

Fluctuating Market Demand

• Up and down cycles challenge product mix and expansion/consolidation planning

• Current up cycle provides cash to improve infrastructure

13

Current trends

� Fluctuating commodity prices

� Market consolidation

� Goal of creating efficiencies and acquiring market share and reserves

� CEO’s desires to become largest

� Search for new uses for output

� Desire to negotiate long term contracts

� Environmental issues

� Substantial investment in R&D for process improvement

14

Mining Industry Characteristics & Value Drivers

� Heavy utilization of capital assets, 24x7 operations

� Primary control is cost containment and process enhancement

� Quality (assay content) of product drives operations and production planning

� Optimize Asset Performance is key driver

� Maximize availability, reliability AND utilization

� Reduce operating costs; maintenance is key variable

� Minimize spare parts inventory & carrying costs

� Monitor production cost statistics & adjust processes

� Financial & Operation Visibility

� Report/inquire on consolidated information from all sites

� Reduce/Delay Capital Expenditures

� Rationalize each sites’ contribution to entire operation

15

Value Awareness – Issues

Asset Management� Maximize ROA� Maximize equipment utilization and reliability / minimize down-time� Minimize equipment maintenance cost � Maintenance prioritization by criticality� Spares inventory reduction

Workforce Management� Efficient processing of trade labor payroll, and reporting� Reduced labor administration costs in the back office

Site Optimization� Optimize mine site production through performance measurement � Facilitate deployment of resources to maximum benefit.

Revenue / Capital

� maximize the return on invested capital, i.e, maximize the

productivity of plant and heavy equipment.

16

Value Awareness – Issues

� Gross Margin/Cash Cost of Production

� minimization of direct site operations costs with improved efficiency,

minimization of mine site operating costs, and ultimately cash cost

of production.

� Revenue Growth

� driven by increased productivity of fixed assets and product quality

� SG&A/Revenue

� minimize overhead that burdens operations.

� Systems Flexibility

� Ease of reporting / performance measurement / consolidation of

remote sites

� Ease of systems implementation on remote site / portability of

systems

� Improved back-office staff productivity

17

<Insert Picture Here>

Oracle’s Solutions

18

Oracle’s Value Proposition for Mining

Oracle is committed to the Mining Industry

Deep mining application footprint

Global access to metrics and flexibility to respond to changes in the business environment

Lowest cost of ownership & fastest time to benefit

1

2

3

4

19

Mining Solution Map

CONFIDENTIAL DRAFT

Suppliers CustomersCapital

Project

Mgmt

ExtractionAssetMgmt

Processing Logistics

Sales&

Marketing

Enterprise Management/Collaboration

Technology

Business Planning

Mining Operations

Mining Asset Lifecycle Management

Supply Chain Management

20

Mining Solution Map

CONFIDENTIAL DRAFT

Suppliers CustomersCapital

Project

Mgmt

ExtractionAssetMgmt

Processing Logistics

Sales&

Marketing

Enterprise Management/Collaboration

Technology

Business Planning

Mining Operations

Mining Asset Lifecycle Management

Supply Chain Management

Geological Modeling*

Enterprise Mine Planning Supply Chain Planning Enterprise Budgeting

* 3rd Party Solution

21

Mining Solution Map

CONFIDENTIAL DRAFT

Suppliers CustomersCapital

Project

Mgmt

ExtractionAssetMgmt

Processing Logistics

Sales&

Marketing

Enterprise Management/Collaboration

Technology

Business Planning

Mining Operations

Mining Asset Lifecycle Management

Supply Chain Management

Project Portfolio Management

Project Management

Project Costing

Asset Maintenance

Asset Decommissioning

MRO & Service Procurement

22

Mining Solution Map

CONFIDENTIAL DRAFT

Suppliers CustomersCapital

Project

Mgmt

ExtractionAssetMgmt

Processing Logistics

Sales&

Marketing

Enterprise Management/Collaboration

Technology

Business Planning

Mining Operations

Mining Asset Lifecycle Management

Supply Chain Management

Mine Planning*

Mine Dispatch & Operations*

Production ReportingPreparation Plant ManagementStockpile ManagementBlend ManagementEnvironmental *

Health & Safety

* 3rd Party Solution

23

Mining Solution Map

CONFIDENTIAL DRAFT

Suppliers CustomersCapital

Project

Mgmt

ExtractionAssetMgmt

Processing Logistics

Sales&

Marketing

Enterprise Management/Collaboration

Technology

Business Planning

Mining Operations

Mining Asset Lifecycle Management

Supply Chain Management

Supply Chain PlanningAssay ManagementContract ManagementSales ManagementPrice ManagementTransportation PlanningTransportation Execution

24

Mining Solution Map

CONFIDENTIAL DRAFT

Suppliers CustomersCapital

Project

Mgmt

ExtractionAssetMgmt

Processing Logistics

Sales&

Marketing

Enterprise Management/Collaboration

Technology

Business Planning

Mining Operations

Mining Asset Lifecycle Management

Supply Chain Management

General LedgerPayablesReceivablesCash ManagementFixed Assets

Business IntelligenceScorecardReporting

Human ResourcesPayroll TrainingBenefitsTime & LaborRecruitment

25

Mining Solution Map

CONFIDENTIAL DRAFT

Suppliers CustomersCapital

Project

Mgmt

ExtractionAssetMgmt

Processing Logistics

Sales&

Marketing

Enterprise Management/Collaboration

Technology

Business Planning

Mining Operations

Mining Asset Lifecycle Management

Supply Chain Management

Service Oriented ArchitectureSystems ManagementIdentity ManagementEnterprise Application ServerGrid ComputingSecurityBPEL

26

Assets

Install

Design/Specify

BusinessModeling

CapitalPlan

Operate

Maintain

Construct/Procure

Manage

Budget

Dispose

Decommission

Projects

Configurator

Purchasing

Fixed Assets

Inventory

General Ledger

OSN

iProc

Service

iSupplier

Property Production

AP

AR

Balanced Score Card

Planning &Budgeting

Time &Labor

Complete Asset Lifecycle ManagementIntegration Out of The Box

27

� Know More

• Visibility to Key Performance Metrics

� Do More

• Enable New Business and Growth Strategies

� Spend Less

• Total Cost of Ownership, Time to Value, Risk