Oracle Corporation et al v. SAP AG et al

Filing 1155

Declaration of Thai Le in Support of 1154 Opposition/Response to Motion In Limine filed byOracle International Corporation. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C, # 4 Exhibit D, # 5 Exhibit E, # 6 Exhibit F, # 7 Exhibit G, # 8 Exhibit H, # 9 Exhibit I, # 10 Exhibit J, # 11 Exhibit K, # 12 Exhibit L, # 13 Exhibit M, # 14 Exhibit N, # 15 Exhibit O, # 16 Exhibit P, # 17 Exhibit Q, # 18 Exhibit R, # 19 Exhibit S, # 20 Exhibit T, # 21 Exhibit U, # 22 Exhibit V, # 23 Exhibit W, # 24 Exhibit X, # 25 Exhibit Y, # 26 Exhibit Z)(Related document(s) 1154 ) (Howard, Geoffrey) (Filed on 5/10/2012)

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EXHIBIT E SAP Priorities by Cluster Expand Addressable Market by Organic Growth ~$30bn ~$70bn Business User Duet Usability (Project Muse) Analytics Midmarket A1s without compromise Modernized simplified A1 (“New A1”) “New A1” as appliance for 2 industries CRM on Demand, deployment models Platform Service Enablement of ERP2005 (BPP) Establish SAP NetWeaver as the integration platform #1 Enterprise SOA showcases Leader in Business User Solutions #1 Midmarket #1 Business Process Platform #1 ERP Leader in Industry Solutions + #1 CRM, #1 SCM #1 SRM, #1 PLM #1 ERP 2005 2010E #1 CRM, #1 SCM, #1 SRM, #1 PLM Ecosystem Industries Improve solution for “services industries” New industry positioning Suite Stabilize CRM Accelerate ERP upgrade End-to-end supportability SCM Best-Run SAP BPR for volume business © SAP AG 2006, Global Service & Support Manager Info Session, G. Oswald / 2 2 Accelerated Progress Towards 2010 Vision… mySAP ERP 2005 generally available mySAP ERP evolves into a BPP 2006 Launch Strategic Products Duet, SAP xApps SAP Analytics, BI-Accelerator SAP CRM On-Demand First pilot customer testing of enhanced midmarket portfolio 2007 mySAP Business Suite on a BPP ESOA Roadmap Completed Enhanced Midmarket portfolio available © SAP AG 2006, Title of Presentation / Speaker Name / 3 3 …And Doubling of Addressable Market by 2010 mySAP Business Suite on a BPP Enhanced midmarket portfolio available … 2007 Enterprise Service-Oriented Architecture Established … ~20% market share, $15bn in product revenue (CAGR 2007-2010 of 15%) 2010 Addressable Market $75bn ~100,000 customers ~2/3 of installed base on Enterprise SOA ~50% of SAP‘s software revenues from new products ~40-45% of SAP‘s order entry from midmarket © SAP AG 2006, Title of Presentation / Speaker Name / 4 4 Comprehensive Competitive Environment SaaS Service Provider The White Space Consulting Custom Develop. SaaS Embedded Software Web Platform Enterprise Application Software Middleware Infrastructure © SAP AG 2006, Global Service & Support Manager Info Session, Gerhard Oswald / 5 5 Personal Productivity Information Worker / Analytics Product Data Mgmt Engineering Core Web 2.0 Oracle – Building Blocks Oracle Building Blocks Source: SSM © SAP AG 2006, Oracle Strategy Review / Nov 21, 2006 / T. Ziemen / 6 6 Oracle – Complete Stack Source: SSM © SAP AG 2006, Oracle Strategy Review / Nov 21, 2006 / T. Ziemen / 7 7 Chronology of Oracle’s Growth by Acquisition Strategy 2005 Jan Feb PeopleSoft/ JD Edwards ($ 10.3B) Mar Apr Retek Oblix ($ 0.7B) Mai Jun TripleHop Jul Aug Sep Oct ProfitLogic TimesTen i-Flex G-Log Innobase ($ 1.0B) Context Media Nov Thor Dec TempoSoft OctetString 2006 Jan Feb Mar Apr Mai Siebel HotSip Sleepycat Net4Call ($ 5.9B) Portal 360Commerce Software Jun Jul Demantra Aug Sep Context Media: Enterprise content integration software G-Log: Logistics management i-Flex: Banking Innobase: Open source database Oblix: Identity management OctetString: Identity management PeopleSoft/JD Edwards: Enterprise applications ProfitLogic: Retail Retek: Retail TempoSoft: Retail Thor: Identity management TimesTen: Real time data management software TripleHop: Enterprise search products and technology Since January 2005, Oracle has made more than 20 acquisitions, totaling approx. US$ 21B Nov Dec Sigma Dynamics Sunopsis Stellent Telephony@Work 2005 Acquisitions Oct MetaSolv SPL 2006 Acquisitions Demantra: SCP Portal Software, HotSip and Net4Call: Telecom software Siebel: CRM Sigma Dynamics: Real-time predictive analytics technology Sleepycat: Open Source DB Telephony@Work: Telecom software 360Commerce: Retail Sunopsis: Data integration MetaSolv Software: OSS service fulfillment, media & communication Stellent: Enterprise content management software SPL: Utilities & tax management software „Oracle would have to spend an est. $17B on acquisitions to generate a sustained EPS CAGR of 20% over the next three years (2007-2009) “ BernsteinResearch, Oct16, 2006 © SAP AG 2006, Oracle Strategy Review / Nov 21, 2006 / T. Ziemen / 8 8 Financial Performance – SAP vs. Oracle (1/2) Q1/FY07 YoY R4Q(Q2/06-Q1/07) in US$ millions Product Software – – Applications Database & Middleware Maintenance – – Applications Database & Middleware Services Consulting Training On Demand Total +29% +28% 12,407 5,079 +21% +22% 228 576 +80% +15% 1,404 3,675 +66% +11% 1,941 +18% 7,328 +20% 700 1,241) +16% +20% 2,738 4,590 +39% +11% 846 633 88 125 +33% +33% +19% +49% 3,049 2,272 339 438 +20% +17% +16% +40% 3,591 +30% 15,456 +21% Q3/2006 YoY R4Q(Q4/05-Q3/06) in US$ millions* Product Software Maintenance 47% (-1) 33% (+1) 3% 2% Maintenance Consulting Training On Demand 37% YoY +13% +17% +10% 7,956 3,699 4,257 +14% +16% +13% 827 712 115 +8% +8% +8% 3,308 2,847 461 +11% +10% +15% Other 21 -11% 88 -9% Total 2,842 +11% 11,352 +13% 15% Software (-1) in US$ millions* 1,994 875 1,119 Services Consulting Training Rolling 4 Quarters YoY in US$ millions 2,745 804 33% (+1) 1% 4% Software Consulting Other 25% Maintenance Training Source: SSM * SAP revenues in US$ based on quarter end exchange rates © SAP AG 2006, Oracle Strategy Review / Nov 21, 2006 / T. Ziemen / 9 9 Relative Size – Total Software Revenue (rolling 4 quarters; based on application software revenues) 70% 60% 50% 51% 51% 53% 53% 54% 55% 57% 55% 58% 60% 60.4% 61.6% 61.4% SAP1) 59.5% 50% 40% 33 PP 34 PP 37 PP ORCL acquires SEBL 30% 20% ORCL acquires PSFT & RETK PSFT acquires JDEC 26.5% 25.3% 16.4% PSFT 10% 27.4% MSFT1)2) 13.2% 13.3% 13.1% 13.1% SEBL 8.8% JDEC RETK 0% Q2 02Q1 03 Q3 02Q2 03 Q4 02Q3 03 Q1 03Q4 03 Q2 03Q1 04 Q3 03Q2 04 Q4 03Q3 04 Q1 04Q4 04 Q2 04Q1 05 Q3 04Q2 05 Q4 04Q3 05 Q1 05Q4 05 Q2 05Q1 06 Source: CMI Analysis based on Company Data and Financial Analysts Estimates as of October 12th 2006 1) Forecast by Financial Analysts (MSFT) and SAP internal estimates 2) Fiscal year is not calendar year - Comparison based on most recent quarter (e.g. SAP Q1 vs. Oracle Q3) © SAP AG 2006, Global Service & Support Manager Info Session, G. Oswald / 10 10 ORCL2) Q3 05Q2 06 Q4 05Q3 06E New Application License Revenue – SAP vs. Oracle New Application License Revenue (in US$ Mn*) Oracle*** SAP SAP as % of Oracle 3,961 559% 525% 3,365 488% 370% 376% 384% 1,658 1,396 238% 268% 1,478 199% 895 710 696 563 350 152 -36% 17% Q1/05 Q3/05 127 639 266 123% 789 641 269 228 57% 16% 9% 20% 52% 18% 28% 18% 77% 14% 83% 13% Q2/05 Q4/05 Q3/05 Q1/06 Q4/05 Q2/06 2005 Q1/06 Q3/06 Q2/06 Q4/06 * SAP revenues in US$ based on quarter end exchange rates ** Estimates based on analyst reports from CIBC, Jefferies & Company, Morgan Stanley *** Closest respective quarters (Oracle Fiscal Year ends May 31) © SAP AG 2005, Global Service & Support Info Session, G. Oswald / 11 11 875 80% 23% Q3/06 Q1/07 340 28% 19% 65% 18% Q4/06E** Q2/07 2006E** Source: SSM Oracle Q2/FY2007 Results – New Application Licenses On December 18, Oracle reported new application license revenue of US$ 340M for Q2/FY2007 which is an increase of 28% over Q2/FY2006 Oracle’s application growth is overstated since the comparison does not consider the independent results for Siebel in Q2/FY2006 (-11% adjusted growth instead of +28%) 500 US$ Mn 400 383 300 Siebel 117 Organic Growth Reported Growth Adjusted Growth ∆=-1 1% % + 28 ∆= ∆=+1% 340 Siebel 72 200 100 0 Oracle (incl. PSFT, Retek) 266 Oracle (incl. PSFT, Retek) 268 Q2/FY2006 Q2/FY2007 © SAP AG 2005, Global Service & Support Info Session, G. Oswald / 12 12 “Let’s beat the enemy” – SAP vs. Oracle “ “Let me give you a word of warning and it's a very serious word of warning. We have just won a few battles. This is the beginning of the war, not the end of the war. You have to assume my dear colleagues that we are dealing with a very shrewd, very smart, very tough and a very rich competitor. And it will not simply sit there and simply accept the fact that we are going to take every day market share away from them (…) We are just at the letter A and we have many more letters to work our way through (…) So I’m calling on everyone: the war is out there, we are dealing with a very mean, very tough competitor and on behalf of everyone who fights these people every day I'm calling upon everyone: let’s act as a united SAP so that we can beat the enemy (…)” Leo Apotheker Member of the SAP AG Executive Board SAP AG Source: SSM © SAP AG 2006, Oracle Strategy Review / Nov 21, 2006 / T. Ziemen / 13 13 Battleground: Oracle vs. SAP Maintenance (Installed Base) Oracle Weapons SAP Weapons Defensive Offensive Offensive • Applications Unlimited + • Safe Passage + • OFF SAP Program o • Lifetime Support + • TomorrowNow ++ • Systime - • MAR Program + + o SAP Weapons Defensive • Maintenance Strategy + SAP Weapons Defensive Defensive • Ecoystem (SDN) + • Industry Solutions ++ • Netweaver o Offensive • ESOA Roadmap + • Midmarket Solutions/A1S + Oracle Weapons Defensive Offensive SAP + o o + Oracle • Best of breed (on OFM) + none Oracle Weapons Defensive • Ecoystem (ODN) ++ • Oracle Accelerate o • Technology Bundles + Offensive Offensive • OnDemand (e.g. Siebel) + • Fusion MW ++ o • Fusion Apps + o Oracle Weapons SAP Weapons Defensive • 11g Grid computing ++ Offensive • Linux Support o • Technology Bundles + © SAP AG 2006, Oracle Strategy Review / Nov 21, 2006 / T. Ziemen / 14 Offensive • Push DB2 and SQL Server + • Project „No Database“ ++ Database 14 Defensive none Middleware (New) Applications • Best of suite ++ Safe Passage Update January 11, 2007 Thomas Ziemen Service Solution Management SAP AG 15 Safe Passage Offering Safe Passage is a smooth way consisting of license credit, maintenance and productized migration support for constrained Oracle customers who want to escape uncertain waters and enter the safe haven of SAP. Applications Best-in-class mySAP business software applications Integration of your IT landscape (SAP NetWeaver) Recognition of your previous investments (up to 75% license credit) in Oracle, PSFT, JDE, Siebel or Retek Migration Services A flexible roadmap to the future, founded on SAP NetWeaver* Assessment of current Oracle, PSFT, JDE, Siebel or Retek implementation Free of charge migration tools and predefined content provided by SAP and Partners Maintenance Support for PSFT, JDE or Siebel via SAP subsidiary, TomorrowNow 50% savings on current support and maintenance fees * included with your mySAP license Source: SSM © SAP AG 2006, Title of Presentation / Speaker Name / 16 16 Safe Passage Offering – Extended in the Course of Time SAP Apps 2005 PeopleSoft, JD Edwards Jan Retek TomorrowNow PeopleSoft, JD Edwards May Sep Siebel Oct 2006 Oracle EBS* Jan May Baan (EMEA C only) Siebel Dec 2007 Jan Apr * Not officially announced, but part of Safe Passage Program according to Apollo ** Not finally decided yet (depending on demand development in EMEA C) *** Not decided yet (Board approval needed) © SAP AG 2005, Global Service & Support Info Session, G. Oswald / 17 17 Baan** Oracle EBS*** What is Safe Passage? A current Oracle, PeopleSoft, JD Edwards, Retek, or Siebel customer that chooses to either replace their existing implementation in favor of SAP or defer migration to Oracle Fusion by purchasing a maintenance contract from TomorrowNow. Software Discount: The customer accepts the license discount from SAP and replaces their existing PSFT, JDE, Siebel, Retek, or Oracle E-Business implementation TomorrowNow Maintenance Only: The customer just purchases a TomorrowNow maintenance contract Competitive Replacement: The customer replaces their existing PSFT, JDE, Siebel, Retek, or Oracle E-Business implementation but the deal is not officially booked as Safe Passage © SAP AG 2005, Global Service & Support Info Session, G. Oswald / 18 18 Safe Passage/TomorrowNow – Installed Base 26 Joint Customers 266 Safe Passage Customers * 216 TomorrowNow Customers Characteristics: Larger customers Upgrades planned SAP experience (already SAP customer, Joint customers) “No Oracle”-strategy Short project cycles High support risk aversion Characteristics: Smaller customers Not SAP-minded No SAP experience / history Running on old releases (functional gaps) No upgrades considered Not decided yet (“Shoppers”) Status December 31, 2006, * Safe Passage December deals not included yet © SAP AG 2005, Global Service & Support Info Session, G. Oswald / 19 19 Review 2006: SAP / TomorrowNow Collaboration © SAP AG 2006, SBD_Update / Eric Brunelle / 20 20 Safe Passage – Customer Tracking Customer Tracking, Jan 2007 No. 266 With Messages („Active Installations“) With Prod. Systems („Live Customers“) Customer Satisfaction* (n=47) * CSS 2006, Q18: „Overall Satisfaction with SAP Service & Support“ / 10-point scale (1= very dissatisfied, 10= extremely satisfied) © SAP AG 2006, Thomas Ziemen, Service Solution Management 21 70 % 168 With Called-Off SAP Installations 100 % 187 Total Number of Safe Passage Customers % of Total 63 % 135 51 % 8.0 (SAP average: 7.4) Source: SSM Outlook 2007: Conversion Program 30% of TomorrowNow customers think TomorrowNow is a first step on the road to SAP 20% of TomorrowNow customers think SAP is too big for them as they are smaller companies 50% of TomorrowNow customers are open and know they will switch somewhere Source: Assumption from Bob Geib - TomorrowNow © SAP AG 2006, SBD_Update / Eric Brunelle / 22 22 Convert2Win: Customer Segmentation 2007 TomorrowNow Installed Base 201 customers (Status: Nov. 2006) 58 customers (Status: Nov. 2006) TNow/SAP Joint customers Step 1: check contract duration Check Contract Duration If contract duration is short, e.g. 1 year, go to Step 2 Step 2: check customer profile Check Profile Release status: is the customer running older releases, e.g. PSFT 7.x? Mindset: is the customer „SAP-minded“? To be checked w/ TNow Step 3: engage w/ customer (assumption: 5 to 10 customers) Engage w/ Customer Different options available: at customer site, infoday, invitation to Sapphire, etc. Customer segmentation to be done in January-February 2007 in collaboration w/ TomorrowNow © SAP AG 2006, Title of Presentation / Speaker Name / 23 23 Safe Passage Applications – Key Achievements 2006 200 Safe Passage – 2006 Customers Cumulative Number of Deals 200* Selected 2006 Customers 74* 150 100 50 0 27 74 126 126 Q1/06 Q2/06 Q3/06 Q4/06 126 Safe Passage deals signed in 2006 (50 Americas, 23 EMEA C, 29 EMEA N, 24 APA) 140 Safe Passage deals signed in 2005 (77 Americas, 17 EMEA C, 28 EMEA N, 18 APA) * Forecast Safe Passage – 2006 License Revenue Cumulated Yearly Net Software Value (in €M) 300* 300 250 114.5* 200 150 100 50 0 185.5 60.6 185.5 94.5 Q1/06 Q2/06 Q3/06 Q4/06 € 185.5M license volume lost for Oracle in 2006 Approx. € 170.0M license volume lost for Oracle in 2005 * Forecast © SAP AG 2006, Global Service & Support Manager Info Session, Gerhard Oswald / 24 24 Safe Passage – Customer Analysis by December 31, 2006 Deals by Industry 10% Consumer Products Deals by Product Line Retail High Tech 14% Others 9% Total 266 18% 4%5% 6% JD Edwards Manufacturing 8% 7% 7% 6% 6% Oil & Gas 33% PeopleSoft Public Sector 30% 28% Financials Pharmaceuticals Retek Telecommunications Deals by Region Oracle 1% 11% 2% Baan Professional Services Service Provider Total 266 Siebel Deals by Contract Size € 0.2M – € 1.0M EMEA N 57 Deals Americas 127 Deals 21% EMEA C 40 Deals 40% 48% < € 0.2M Total 266 2 5% 15% Total 266 3 5% 16% APA 42 Deals Avg. Deal Size € 1.5M © SAP AG 2006, Global Service & Support Manager Info Session, Gerhard Oswald / 25 25 > € 1.0M Safe Passage – Customer Analysis by December 31, 2006 Retek 1% Siebel 13% Deals by Product Line JD Edwards 33% PeopleSoft 30.000 Oracle Application Customers JDE 23% EBS 45% 30% Total 266 28% Retek PSFT 18% Deals by Region Oracle EBS 1% 11% 2% Baan Siebel Deals by Contract Size € 0.2M – € 1.0M EMEA N 57 Deals Americas 127 Deals 21% EMEA C 40 Deals 40% 48% < € 0.2M Total 266 2 5% 15% Total 266 3 5% 16% APA 42 Deals Avg. Deal Size € 1.5M © SAP AG 2006, Global Service & Support Manager Info Session, Gerhard Oswald / 26 26 > € 1.0M Baan Competitive Replacement Program Early References in Belgium and Netherlands Market Potential EMEA N 500 EMEA C 1000 N. America Total 2600 Selected Implementation Partners 1000 100 APA Target 2006: 10 deals (7 contracts already signed) Target 2007: 30 deals Milestones Maintenance & Migration Services TomorrowNow - As of January 1st, 2007 - 3 dedicated headcount out of Amsterdam - Partner Picolog as subcontractor for second level support Launch in EMEA Central in Q3 via Press Release on September 25, 2006 Marketing campaign in Q4 - Baan customer satisfaction survey via external tele company - Baan customers w/ high or medium interest currently being mailed by SAP Migration Tools & Content - Leveraging SAP ADM infrastructure - First Baan content pack available in December 2006 Customer Infodays - e.g. Itelligence, w/ 32 Baan customers in Stuttgart (currently 5 opportunities out of the event) © SAP AG 2006, Global Service & Support Manager Info Session, Gerhard Oswald / 27 27 Management Summary – TommorowNow Value Proposition SAP View Hurt Oracle by taking away maintenance revenue Serves as bridge for future SAP license business for (smaller, not SAP-minded customers) Customer View Offer lower priced 24x7 maintenance alternative to PeopleSoft, JD Edwards, and Siebel customers with 50% savings on current support and maintenance fees Provide those customers with a choice to migrate to SAP (at their own pace) TomorrowNow established as cornerstone of the Safe Passage Program Business Case Analysis Safe Passage pipeline (403 opportunities currently in process), TomorrowNow pipeline (816 open opportunities), and revenues justify the cost of the acquisition and additional operating expenses Installed base grown to 216 customers with 228 TomorrowNow customer contracts signed in 2006 (139 new contracts and 89 renewals in 2006; 121 signed in 2005 with 75 new deals and 46 renewals) In total € 41.4 million reduction of Oracle maintenance revenue since acquisition of TomorrowNow € 9.0 million TomorrowNow stand-alone revenue in 2006 (€ 3.5 million in 2005) Field: Another year needed to finalize global alignment with SAP Sales organization Lessons Learned Marketing: Oracle Disruption Campaign Q3/2006 resulted in high lead success rate for TomorrowNow, i.e. high return on marketing investments Oracle Turn up the Heat Campaign resulted in 150+ opportunities for TomorrowNow (17 contracts signed) F&A: Globalization of business in cooperation with SAP regions is a challenge and was underestimated as such Need to actively manage regional shared services for TNow TomorrowNow is a strategic investment and serves as strategic weapon against Oracle: Conclusion Take away maintenance revenue from Oracle Create pre-pipeline of future SAP customers TomorrowNow still operates at a loss in 2006 but Break-even is expected for 2008 after completion of globalization and business scoping in 2007 (in line with board assumption to become a profitable business within 2-3 years after acquisition) © SAP AG 2006, TNow Acquisition Monitoring, 28 SAP STRICTLY CONFIDENTIAL 28 KPI Framework – TomorrowNow (Status December 31, 2006) Cumulated Number of New Customers & Client Contracts in 2006 TomorrowNow Opportunities (in CoD) 24 2005: 75 new customer contracts 121 total customer contracts 9 228 Booked 816 91 27 40 54 Q1/06 Won In Process Discontinued Lost 74 228 142 97 Q2/06 Q3/06 New Customer Contracts 40,0 41,4 32,7 21,4 Q1/06 12,2 5,5 8,6 Q2/06 Q3/06 Multi-Year Contracts included 15,0 18,0 13,6 Multi-Year Contracts excluded Q1/06 Q2/06 6,1 3,8 Q3/06 © SAP AG 2006, TNow Acquisition Monitoring, 29 Q3/06 Customer Retention TR*IM Index 107 Overall Satisfaction 8.5 Acc. Mgmt: 8.7 S&S: 8.8 95% as References 97% likely Renewal rate 9,0 Q4/06 Cost Q2/06 28,0 32,3 Q4/06 Plan * Since Acquisition (doubled contract volume of newly signed TomorrowNow deals) 20,9 9,9 23,0 € 10.8M maintenance volume lost for Oracle in 2005 14,6 1,9 19,0 Q1/06 Q4/06 Cost vs. Revenue in 2006 (Cumulative in €M) 4,8 Q4/06 Total Customer Contracts Cumulated* Maintenance Volume Taken Away From Oracle in 2006 (in €M) 2006 Contract Volume (in €M) 6,4 3,1 139 Revenue SAP STRICTLY CONFIDENTIAL 29 Actual TomorrowNow Customer Satisfaction Survey 2006 Thomas Ziemen Service Solution Management, SAP AG December 2006 30 Sample Structure Out of 188 available addresses 63 interviews were conducted, a considerable total response rate of 33% Sample by Region Sample by Area of work Total Addresses AME Non-AME Total 188 166 22 125 63 Interviews 63 56 7 Response rate 33% 33% IT LoB unknown unknown unknown 31% 55 3 Sample by Industry Total Manufacturing Service Industries Trade Financial Services Public Services Addresses 188* 87 38 13 14 34 Interviews 63 29 11 6 6 11 Response rate 33% 33% 28% 46% 42% 32% * Industry information is missing for 2 out of 188 available addresses Base: 2006 TomorrowNow, Inc. Proprietary and Confidential 31 Other 5 Summary In the first customer satisfaction survey of TomorrowNow customers a very high level of customer retention was measured, with an overall TRI*M Index of 107 The customer retention level for North America (NA) is 106, for non-NA countries it is slightly higher with 110 The overall satisfaction with TomorrowNow is also on a very high level with 8.5 Overall, Performance and Maintenance Services clearly drive customer retention, whereas most Benefits (e.g. 24x7 support, 30 minute response time) do not have a high impact In terms of Performance, quality and reliability of maintenance support and particularly solution expertise are most relevant and should be further improved The primary support engineer for the customer's account meets the customers' expectations, should therefore be maintained, while other benefits such as longer support periods or lower maintenance fees are less relevant Regarding Maintenance Services, general problem-solving abilities in critical situations are well-performing An enormous high amount of 95% of TomorrowNow customers consider themselves a favorable reference for TomorrowNow Almost 100% of TomorrowNow customers would renew their maintenance contract with TomorrowNow in the future, which is another very positive feedback TomorrowNow, Inc. Proprietary and Confidential 32 TRI*M Index by Region and Area of work The overall TRI*M Index (indicating the level of customer retention) of TomorrowNow is performing very high, non-NA even higher TRI*M Index by Region 107 106 107 110 100 * Total North America (NA) SAP TomorrowNow SAP TomorrowNow 85* Adapted SAP SAP TomorrowNow 90 Non-NA * Adapted to TNow sample: NA = USA + Canada, Non-NA = UK, Singapore, Australia, New Zealand TRI*M Index is a calculated value based on satisfaction, recommendation likelihood, repurchase intention and competitive benefits Base: Total: 63 / North America (NA): 56 / Non-NA: 7 // SAP global: 5,992 / SAP adapted global: 1,274 / SAP NA: 876 / SAP Non-NA: 398 TomorrowNow, Inc. Proprietary and Confidential 33 TRI*M Customer Typology by Region The vast majority of TomorrowNow customers are highly retained, in particular outside of AME retained customers customers who compare 6% 5% 7% 5% 89% 88% Total AME customers at risk 100% Non-AME TRI*M Customer Typology is based on the TRI*M Index and allows a categorization of customers according to their retention Base: Total: 63 / AME: 56 / Non-AME: 7 TomorrowNow, Inc. Proprietary and Confidential 34 TRI*M Index by Sector Whereas Manufacturing and Public Services exceed the overall TRI*M Index, customer retention is on the lowest level in the Financial Services industry 107 115 109 108 107 97 92 90 112 112 107 103 89 89 107 89 85 Total Manufacturing Service Industries Trade Financial Services SAP Global SAP North America TomorrowNow SAP Global SAP North America TomorrowNow SAP Global SAP North America TomorrowNow SAP Global SAP North America TomorrowNow SAP Global SAP North America TomorrowNow SAP Global SAP North America TomorrowNow 62 Public Services TRI*M Index is a calculated value based on satisfaction, recommendation likelihood, repurchase intention and competitive benefits Base: Total: 63 / Manufacturing: 29 / Service Industries: 11 / Trade: 6 / Financial Services: 6 / Public Services: 11 SAP North America Total: 876 / Manufacturing: 549 / Service Industries: 127 / Trade: 60 / Financial Services: 25 / Public Services: 115 SAP Global Total: 5,992 / Manufacturing: 3,371 / Service Industries: 1,273 / Trade: 430 / Financial Services: 360 / Public Services: 558 TomorrowNow, Inc. Proprietary and Confidential 35 TRI*M Questions The very positive overall TRI*M Index derives from the high level throughout all four aspects of customer satisfaction and loyalty TomorrowNow 8.5 SAP North America Overall satisfaction 8.4 SAP Global 7.6 8.7 TomorrowNow Likelihood to recommend 8.8 SAP North America SAP Global Likelihood to renew contract (SAP: Likelihood to repurchase) 8.0 8.4 TomorrowNow 8.7 SAP North America SAP Global Benefits / competitive advantage TomorrowNow 8.0 8.2 8.4 SAP North America SAP Global 7.8 Q1: 1 is very dissatisfied and 10 is very satisfied Q2: 1 is definitely will not recommend TomorrowNow and 10 definitely will recommend TomorrowNow Q3: 1 is definitely would not renew maintenance contract and 10 definitely would renew maintenance contract Q4: 1 is the benefits or advantages of using TomorrowNow are very poor and 10 the benefits or advantages of using TomorrowNow are excellent TomorrowNow, Inc. Proprietary and Confidential 36 Satisfaction with Account Management by Region Overall satisfaction with account management among TomorrowNow customers is on a very high level in and outside of North America 8.7 8.7 8,2* 8.5 8.7 Total North America (NA) SAP TomorrowNow SAP TomorrowNow 7.4* Adapted SAP SAP TomorrowNow 7.7 Non-NA * Adapted to TNow sample: NA = USA + Canada, Non-NA = UK, Singapore, Australia, New Zealand Q7: Using a 10-point scale, where 1 is very dissatisfied and 10 is very satisfied, how satisfied are you with TomorrowNow’s account management overall? Base: Total: 63 / North America (NA): 56 / Non-NA: 7 // SAP global: 5,102 / SAP adapted global: 1,221 / SAP NA: 864 / SAP Non-NA: 357 TomorrowNow, Inc. Proprietary and Confidential 37 Satisfaction with Account Management by Sector While overall satisfaction with TomorrowNow's account management is highest in Manufacturing, respondents from Financial Services are remarkably less satisfied Total Manufacturing Financial Services SAP Global 7.6 SAP North America TomorrowNow Trade 8.6 7.4 TomorrowNow SAP Global SAP North America TomorrowNow Service Industries 7.7 SAP Global 7.7 SAP Global SAP North America 8.5 8.4 7.6 TomorrowNow SAP North America 8.8 8.2 7.7 TomorrowNow SAP Global SAP North America TomorrowNow 7.7 8.8 8.7 8.5 SAP North America 9.0 8.5 SAP Global 8.7 Public Services Q7: Using a 10-point scale, where 1 is very dissatisfied and 10 is very satisfied, how satisfied are you with TomorrowNow’s account management overall? Base: Total: 63 / Manufacturing: 29 / Service Industries: 11 / Trade: 6 / Financial Services: 6 / Public Services: 11 TomorrowNow, Inc. Proprietary and Confidential 38 Satisfaction with Maintenance & Support Services Overall customer satisfaction with TomorrowNow's maintenance & support services is remarkably high, too: Overall Satisfaction with Maintenance & Support Services by Region 8.8 7.8* Total North America SAP TomorrowNow 7.3 * TomorrowNow SAP Adapted SAP TomorrowNow 7.4 8.7 8.0 SAP 8.8 Non-NA * Adapted to TNow sample: NA = USA + Canada, Non-NA = UK, Singapore, Australia, New Zealand Q5: Using a 10-point scale, where 1 is very dissatisfied and 10 is very satisfied, how satisfied are you with the quality and reliability of TomorrowNow’s maintenance support? Base: Total: 63 / NA: 56 / Non-NA: 7 // SAP global: 4,328 / SAP adapted global: 989 / SAP North America (NA): 691 / SAP Non-NA: 298 TomorrowNow, Inc. Proprietary and Confidential 39 Details: Satisfaction with Maintenance & Support Services (1/2) 9.3 9.1 9.0 9.0 8.8 8.3 7.8 7.5 Tax Updates Legal Updates Fixes for serious issues Support in critical situations SAP Global SAP North America TomorrowNow SAP Global * SAP North America * TomorrowNow TomorrowNow * TomorrowNow TomorrowNow 7.1 Time required to come up with a solution * question not asked in SAP survey Q9: Using a 10-point scale, where 1 is very dissatisfied and 10 is very satisfied, how satisfied are you with TomorrowNow’s maintenance & support services? Base: Total: 63 TomorrowNow, Inc. Proprietary and Confidential 40 Details: Satisfaction with Maintenance & Support Services (2/2) 8.9 Information on progress Technical knowledge of support engineer * Availability of support engineer TomorrowNow * TomorrowNow TomorrowNow SAP Global SAP North America TomorrowNow Quality of problem resolution 9.0 7.3 TomorrowNow 7.6 7.4 SAP Global 7.8 9.0 8.8 SAP North America 8.9 * Personalized service * question not asked in SAP survey Q9: Using a 10-point scale, where 1 is very dissatisfied and 10 is very satisfied, how satisfied are you with TomorrowNow’s maintenance & support services? Base: Total: 63 TomorrowNow, Inc. Proprietary and Confidential 41 Reference for TomorrowNow An enormous amount of 95% of TomorrowNow customers would consider themselves a favorable reference: (SAP NA: 4%) 2% 3% (SAP NA: 13%) Yes No On certain product lines 95% (SAP North America: 83%) Q12: Would you consider yourself a favorable reference for TomorrowNow? Base: Total: 63 / Yes: 60 / No: 1 / On certain product lines: 2 TomorrowNow, Inc. Proprietary and Confidential 42 TomorrowNow Customer Retention An enormous amount of 95% of TomorrowNow customers would consider themselves a favorable reference: Retention & CS CS for AccMgmt & Services 3% 2% 3% Yes High Likelihood (5 - 10) No Low Likelihood (1 - 4) On certain product lines 97% 95% TomorrowNow, Inc. Proprietary and Confidential 43 Likelihood of Maintenance Contract Renewal Almost 100% of TomorrowNow customers feel very comfortable with renewing their maintenance contract in the future 3% High Likelihood (5 - 10) Low Likelihood (1 - 4) 97% Q3: How likely would you be to renew your maintenance contract with TomorrowNow in the future? 1 is definitely would not renew maintenance contract and 10 definitely would renew maintenance contract Base: Total: 63 / High Likelihood: 61 / Low likelihood: 2 TomorrowNow, Inc. Proprietary and Confidential 44 The Voice of the Customer “From initial contact, to reference checks, to Q&As, to contract negotiations, through onboarding, and now into full maintenance and support, the experience with TomorrowNow has been first class. I'm very impressed” “TomorrowNow support personnel have been very supportive in helping with our different problems. In some cases, they have gone above and beyond in helping us. Thank you” “Overall perception is: Seem to get an early acknowledgement of our cases. Lots of activity on some cases but don't seem to get to resolution. On other cases, not evidence of activity” “The technical help we received was outstanding” “Would like a forum to search for resolutions” “Keep annual cost low and keep delivering payroll tax patches” “[We need a] formalized and standard certification process for OS, DB, peripherals and tools that are continuing to march forward while our supported applications suite (Peoplesoft) remains at an old release level” “Cannot find anything to add to their excellent performance” TomorrowNow, Inc. Proprietary and Confidential 45 Outlook 2007 We will continue the customer satisfaction survey for TomorrowNow customers in 2007 in two survey waves, each representing ~50% of total customer base: Wave 1: April/May 2007 Wave 2: October/November 2007 Contact Alexander W. Sieferer Michael L. Ranke Program Director, SAP Service Solution Management ´ Tel. +49 (0) 6227 7-46465 f +49 (0) 6227 78-27529 m +49 (0) 171 30 85 240 alexander.sieferer@sap.com Global Account Director TNS Technology ´ Tel. +49 (0) 89 5600 - 1740 f +49 (0) 89 5600 - 1437 m +49 (0) 170 38 73 196 michael.ranke@tns-infratest.com TomorrowNow, Inc. Proprietary and Confidential 46 Appendix Sample Structure TRI*M Typology TomorrowNow, Inc. Proprietary and Confidential 47 TRI*M Customer Typology by Sector In parallel to their lower level of customer retention, customers from the Financial Services industry are much more at risk than customers from the other industries retained customers 6% 5% 89% 3% 7% customers who compare customers at risk 9% 9% 90% 33% 100% 100% 82% 67% Total Manufacturing Service Industries Trade Financial Services Public Services TRI*M Customer Typology is based on the TRI*M Index and allows a categorization of customers according to their retention Base: Total: 63 / Manufacturing: 29 / Service Industries: 11 / Trade: 6 / Financial Services: 6 / Public Services: 11 TomorrowNow, Inc. Proprietary and Confidential 48 TomorrowNow – Delivery Status by December 31, 2006 KPI Status Comment Lost Maintenance for Oracle Doubled cumulated volume of newly signed TNow maintenance contracts (50% of previous fees) # of Deals in 2006 126 booked SP deals, 139 new TNow contracts and 89 TNow renewals in 2006 Slightly below Forecast 12 due to lower charge backs expectations and aggressive Oracle Lifetime Support strategy Forced Oracle into maintenance fee battle Revenue TNow TNow Installed Base Currently 31% of TNow’s customers are in addition SAP clients (incl. accordant cross selling potential) TNow Pipeline TNow pipeline steadily increasing TNow Involvement Current TNow involvement in active Safe Passage pipeline equals 23% (59 opportunities in total) Cost TNow Slightly above Forecast 12 due to higher Marketing expenses Headcount Headcount plan adapted according to revenue numbers Cumulative Maintenance Lost for Oracle (in €M) Cumulat. # of Deals in 2006 (SP / TNow Stand-Alone) Cumulative Revenue TNow (in €M) TNow Installed Base 228 40,0 41,4 18,0 15,0 23,0 19,0 Q1/06 Q2/06 28,0 32,3 126 74 142 216 126 91 6,0 30 40 7,5 6,8 3,8 2,4 1,9 0,5 Q1/06 Q2/06 1,2 10,7 10,4 125 184 152 1,2 1,3 0,7 45 Q3/06 Forecast Q4/06 Actual TNow Pipeline (Stand-Alone) 958 1.051 Q1/06 Q2/06 Q3/06 Q4/06 Safe Passage TomorrowNow TNow Involvement in SP Pipeline (in Process) 1.151 328 319 Q3/06 Q4/06 Internal Charge Backs Forecast Actual 51 54 67 Q1/06 Q2/06 Q3/06 Q4/06 TNow Clients Cumulative Cost TNow (in €M) Joint TNow/SAP Clients Headcount (in FTE) 311 21,7 22,1 231 121 111 14,6 15,2 455 133 129 140 140 Q1/06 Q2/06 Q3/06 165 157 9,6 9,7 3,9 4,7 46 Q1/06 Q2/06 Q3/06 Q4/06 64 69 57 Q1/06 Q2/06 Q3/06 Q4/06 TNow Pipeline Safe Passage Pipeline TNow Involvement © SAP AG 2006, Service Solution Management / Thomas Ziemen / 49 Q1/06 Q2/06 Q3/06 Forecast Q4/06 Actual Forecast 49 Q4/06 Actual TomorrowNow – 2006 Selected Customers EMEA Americas APA © SAP AG 2006, Oracle Strategy Review / Sep15, 2006 / T. Ziemen / 50 50 TomorrowNow – Customer Analysis by December 31, 2006 Booked Contracts by Type Booked Contracts by Product Line Newly Signed Deals 139 Contracts PeopleSoft 129 Contracts JDE World 34 Contracts 61% 56 % Total 228 39% Renewal Rate: 90% TR*IM Index: 107 Customer Satisfaction: 8.5 26% 2% Siebel 6 Contracts Renewed Deals 89 Contracts Booked Contracts by Region Americas 192 Contracts 15% Total 228 JDE OneWorld 59 Contracts Booked Contracts by Deal Size < € 50K 130 Contracts 84% € 50K – € 100K 47 Contracts 57% Total 228 EMEA N 12 Contracts EMEA C 9 Contracts Total 228 2 1% 5% 4% 7% 22% APA 15 Contracts Avg. Deal Size: € 75K © SAP AG 2006, Service Solution Management / Thomas Ziemen / 51 51 > € 100K 51 Contracts TomorrowNow (Stand-Alone) – Analysis of New Customers in 2006 New Customer Contracts by Industry New Customer Contracts by Product Line Manufacturing Others PeopleSoft 67 Contracts High Tech 15% JDE World 23 Contracts 12% Total 139 37% 17% Consumer Products 11% 8% 47% Prof. Services 4% 6% 7% 32% Retail Insurance 4% Siebel 5 Contract Healthcare New Customer Contracts by Region Americas 107 Contracts Total 139 JDE OneWorld 44 Contracts New Customer Contracts by Deal Size < € 50K 77 Contracts 77% € 50K – € 100K 31 Contracts 56 % Total 139 EMEA N 11 Contracts EMEA C 7 Contracts Total 139 22% 8% 5% 22% 10 % APA 14 Contracts Avg. Deal Size: € 81K Status: December 31, 2006 © SAP AG 2006, Service Solution Management / Thomas Ziemen / 52 52 > € 100K 31 Contracts Oracle Disruption Campaign / SP II – Program Timing Wave 1 – Turn up the Heat (Q1D) Aug 8th – Sep 2006 Wave 2 - Advertising Sept 12th – Mid Oct 2006 Wave 3 – Targeted Marketing Oct 2006 – 2007 Launch Date: • Aug 8th Launch Date: • Sep 12th Launch Date: • Oct 2006 Tactics: • Telemarketing • AE call blitz • Landing Page • Email • Limited time offers Tactics: • Advertising: Awareness building • SAP.com: Re-launch • Online: Banners, landing page Tactics: • Direct Marketing (DM, Email, & Online) • Enhanced Offers • Events: Apollo-on-the-Road • PR/AR Messages: • Focus on offer to close • Lack of future support options with Oracle Messages: • Focus on lack of future support to Oracle customers • You have a choice • Save money, Buy time Messages: • Focus on value of SAP • The ease of migration • Match current pains to offers to show value of SAP Source: Apollo © SAP AG 2006, Oracle Strategy Review / Sep15, 2006 / T. Ziemen / 53 53 Successful Marketing Campaign around Tomorrow Now With a lead success rate of 3,3% compared to a typical rate of 1 to 1,5% the following campaign was conducted in the US, EMEA NEWS and APA in the time from August to October 2006: Objective Defer Oracle’s Q1 revenue and identify at risk business and attract to SAP Tactics Aggressive Tele-marketing and Direct Mail campaign aimed at the Oracle Customer Base with attractive license credit and TomorrowNow maintenance offers Results Organizations Called Total Leads License Offer 12.992 435 64 TOTALS Comments TNow Offer 295 Both Offers 76 1. All numbers updated based on APA numbers update 2. Total number of TNow leads on next slides (379) is higher (+8) since some customers already engaging with TNow but not approached via the campaign heard about the offering and asked for the same conditions before signing the contract 3. Calling has been resumed in EMEA NEWS mid of October as the region didn’t get any leads due to the holiday season. Results of call resumption should be available soon © SAP AG 2006, Oracle Strategy Review / Sep15, 2006 / T. Ziemen / 54 54 Oracle Disrupt Q1 Campaign: Results (as of Nov 6th, 2006) Key Findings 435 Prospects generated by Telemarketing Singapore 3 (1%) India 33 (8%) Malaysia 10 (2%) ANZ 55 (13%) Most leads generated in the US Canada 7 (2%) Campaign not executed in EMEA Central UK 12 (3%) No leads generated in Nordics, France, Italy, and Spain (calling resumed on Oct 16th in NEWS) US 315 (71%) 435 Prospects distributed by offer Most leads generated for Offer 1 (TomorrowNow) Both offers: 76 (17%) Offer 2: 64 (15%) Offer 1: 295 (68%) © SAP AG 2006, Oracle Strategy Review / Sep15, 2006 / T. Ziemen / 55 55 Oracle Q1D Campaign: TNow Leads (Status: Jan 8th 2007) 400 379 14 180 350 300 250 62 200 150 108 100 50 42 0 25 17 Total No. handed over by SAP Existing leads Deals rejected by TNow Open leads Sales Leads & Opps Signed Contracts Total number handed over by SAP: handed over by Telemarketing agencies to SAP (379) Existing leads: a company the TNow AE had already been actively in contact with (14) Deals rejected by TNow: no product fit, no interest, customer did not want a call, wants to stay with Oracle, inaccurate lead information (180) Open leads: lead not assigned to an AE; qualified by Telemarketing first (62) Sales leads and opps: includes in process leads (83 leads which have been assigned to AEs) and converted leads (25 leads that have turned into an opportunity; expected to be won) Signed contracts: 17 new TNow customers signed via Q1D campaign, representing approx. € 3.6 million maintenance volume taken away from Oracle. Based on information available, the converted leads could represent an additional €1.3 million maintenance volume taken away from Oracle © SAP AG 2006, Service Solution Management / Thomas Ziemen / 56 56 TNow Planning 2007ff 57 TomorrowNow Outlook – FY2007 2007 TNow Opportunity Pipeline by Status Q1/2007 TNow Opportunity Analysis In Process TNow Q1/2007 Opportunities: 332 9 New Customer Opportunities: 289 228 Existing Customer Opportunities: 43 Booked In Process Opportunities by Product Line: 121 PSFT, 78 JDE OneWorld, 19 JDE World, 11 Siebel, 103 not assigned Won In Process Opportunities by Region: 253 Americas, 36 APA, 23 EMEA C, 20 EMEA N In Process Discontinued Expected Sales Volume: € 22.8 million maintenance for Oracle Lost 816 Weighted Sales Volume: € 6.9 million maintenance for Oracle Annual Loss for Oracle & TNow Revenue 2007 Cumulative Annual Loss for Oracle (in €M) 15 % 41.4 20 40 10 41.4 20 0 2006 2007E 5 0 22.3 9.0 2006E 500 400 % +1 17 47.0 Client Contracts New Customers 500 +1 45 80 60 25 € 13.8 million lost Number of New Customers & Client Contracts 2007 TNow Revenue (in €M) 90.0 100 € 45.6 million lost 400 300 300 200 100 0 2007E Status: December 31, 2006 © SAP AG 2005, Global Service & Support Info Session, G. Oswald / 58 58 97 % 74 + 139 2006 10 1% + 24 450 200 280 2007E 100 0 228 2006 2007E Financial Scorecard – TomorrowNow When conducting a financial review for TomorrowNow the following two aspects have to be considered: TomorrowNow on a Stand-Alone basis, as well as Safe Passage implications which reflect a reduction of the expenses due to charge out to SAP entities * Internal Plan excluding Baan and Oracle © SAP AG 2006, TNow Acquisition Monitoring, 59 SAP STRICTLY CONFIDENTIAL 59 Service Delivery Readiness – TomorrowNow TomorrowNow Forecast 12/2006 Global Americas EMEA APA Headcount (in FTE) 157 116 21 20 Number of Offices 10 6 2 2 TomorrowNow Support Services 30-minute initial response time and corrective action on a 24x7 scale, dedicated support engineer for each account Ongoing tax and legislative updates, advanced expert on demand services (e.g. technology upgrades) Supported Products: PeopleSoft Enterprise PeopleSoft 7.x, 8.x (Commercial & Public Sector) HCM, NA Payroll, Financials, Distribution, Manufacturing J.D. Edwards World J.D. Edwards World A7.x, 8.x HCM, NA Payroll, Financials, Distribution, Manufacturing © SAP AG 2006, TNow Acquisition Monitoring, 60 J.D. Edwards OneWorld Siebel J.D. Edwards OneWorld XE 8.11 HCM, NA Payroll, Financials, Distribution, Manufacturing Siebel 5.x, 6.x, 7.0x, 7.5x, and 7.7x Call Center, Sales, Service, Marketing, Partner Management, Reporting & Analytics SAP STRICTLY CONFIDENTIAL 60 Baan Will start January 1, 2007 (Baan IV, Baan ERP) Oracle EBS Currently under Investigation (EBS 10.7, 11, 11i) Gartner on Oracle’s Application Roadmap Oracle Application Roadmap Source: SSM © SAP AG 2006, Oracle Strategy Review / Nov 21, 2006 / T. Ziemen / 61 61 Oracle Customer Base – Applications Application Product Lines Siebel 13% # of Customers E-Business Suite Retek 1% 13,500 PeopleSoft Enterprise 5,500 JD Edwards EnterpriseOne 4,000 JDE World 3,000 Siebel 4,000 Retek 200 TOTAL Oracle Applications JDE 23% 30,200 EBS 45% PSFT 18% Source: CMI Estimates 10/2006 10.7 or earlier 11.0 1% 5% 11i v10 6% Key Gartner Findings: By mid-2005, users in as much as 40% of Oracle's installed base will start planning an upgrade to v.10 of 11i to access its new functions, UI and integration capabilities (0.8 probability) Oracle EBS With no support end date driving users, less than 10% of Oracle's installed base will be live on v.10 of 11i by the end of 2005 (0.7 probability) Oracle database v.8i will be de-supported in 2005, causing application users of v.11i1 through v.11i6 to execute an upgrade to avoid running on a de-supported database version Source: Gartner Research 10/2005 © SAP AG 2006, Oracle Strategy Review / Nov 21, 2006 / T. Ziemen / 62 62 11i v9 60% 11i v1-6 3% 11i v7 7% 11i v8 18% Prioritization by region and application EMEA Central EMEA News LA Canada US TN PeopleSoft HR M H M H H H PeopleSoft CRM L H M M M H JDE 1W M H H M M H JDE World M H H L L H Siebel H M L L M H Retek L L L L L L Baan H L L L-M L-M M Oracle EBS L H H H H M (will go high in 2007) Infor H H L-M L-M L-M L H = High Priority M = Medium Priority L = Low Priority 1 Safe Passage Summit notes v1/ Samantha Hilton / 63 63 Global Organization and Governance Model TNow Board of Directors SAP Board Area GSS Andrew Nelson / Greg Tomb / Mark White Gerd Oswald / Bernd Welz TNow President & CEO SAP TNow Global Biz Owner Andrew Nelson Thomas Ziemen Total No. of Offices: 10 Total No. of Employees: 95 by end of 2005 (+170%) 157 by end of 2006 (+ 65%) 209 by end of 2007 (+ 30%) Maidenhead Pleasonton TNow Americas Entities / Offices: Amsterdam (NL) Maidenhead (UK) Amsterdam Employees: 14 by end of 2005 21 by end of 2006 Denver Atlanta Bryan Entities / Offices: Bryan (USA) Mexico City Atlanta (USA) Denver (USA) Pleasonton (USA) Mexico City (Mexico) Sao Leopoldo (BRA) - planned for 2007 Employees: 72 by end of 2005 116 by end of 2006 TNow EMEA (Sao Leopoldo) Singapore TNow APA Entities / Offices: Singapore Sydney Employees: 9 by end of 2005 20 by end of 2006 © SAP AG 2006, Oracle Strategy Review / Sep15, 2006 / T. Ziemen / 64 64 Sydney TNow KPIs/Bonusplan 2007 65 TomorrowNow – Bonus Funding Plan 2007 Bonus Funding Measures for Sales and Marketing No Performance Indicator Weight Evaluation of Target Achievement (%) 1 Strategic Planning (3-Year-Biz-Plan, Maintenance Strategy, Globalization, Operationalization) 15% By Management Judgement 2 Safe Passage Deal Support and Cross Sell Opportunities 15% Based on Number of bundled Deals and Number of generated Safe Passage leads, by Management Judgement 3 TNow closed Sales (stand-alone Contract Activity) 30% Total new + renewal Contract Activity = US$15M/quarter (US$60M/year) = 100% Achievement 4 TNow Cost Management (according to revenue numbers) 15% Stay in Budget = 100%, 10% over Budget = 0%, 5% under Budget = 150% 5 TNow Customer Satisfaction 25% Scale from 1 to 10: 7.5 = 100%, 6.5 = 0%, 8.0 = 150% Bonus Funding Measures for Service and IT No Performance Indicator Weight Evaluation of Target Achievement (%) 1 Service Quality 30% Based on positive Case Closure, No of Updates on Time 2 TNow Customer Satisfaction 25% Scale from 1 to 10: 7.5 = 100%, 6.5 = 0%, 8.0 = 150% 3 TNow closed Sales (stand-alone new + renewal Contract Activity) 30% Total new + renewal Contract Activity = US$15M/quarter (US$60M/year) = 100% Achievement 4 TNow Cost Management (according to revenue numbers) 15% Stay in Budget = 100%, 10% over Budget = 0%, 5% under Budget = 150% Proposal discussed and agreed with Mark White and Thomas Ziemen © SAP AG 2006, Title of Presentation / Speaker Name / 66 66 TomorrowNow – Bonus Funding Plan 2006 (Achievements) Bonus Funding Measures for Marketing & Sales, IT & Services KPI Funding Measures - Marketing & (non-commissioned) Sales Strategic Planning (3-Year-Biz-Plan, Maintenance Strategy, Globalization, Operationalization) SafePassage Deal Support TNow closed Sales (stand-alone new + renewal Contract Activity) TNow Cost Management (according to revenue numbers) TNow Customer Satisfaction 2006 VIP Funding Level (%) - Marketing & (non-commissioned) Sales Weighted Achievement 15% 15% 52% 15% 63% 159,250% Calculation Comments from Jan-2006 presented to Gerd Oswalt: By Management Judgement Based on Number of bundled Deals, by Management Judgement Total new + renewal Contract Activity = US$5M/quarter (US$20M/year) = 100% Achievement Stay in Budget = 100%, 10% over Budget = 0%, 5% under Budget = 150% Scale from 1 to 10: 7.0 = 100%, 6.0 = 0%, 7.5 = 150% KPI Funding Measures - IT & Services Service Quality TNow Customer Satisfaction TNow closed Sales (stand-alone new + renewal Contract Activity) TNow Cost Management (according to revenue numbers) 2006 VIP Funding Level (%) - IT & Services Weighted Achievement 30% 63% 52% 15% 159,250% Calculation Comments from Jan-2006 presented to Gerd Oswalt: Based on positive Case Closure, No of Updates on Time Scale from 1 to 10: 7.0 = 100%, 6.0 = 0%, 7.5 = 150% Total new + renewal Contract Activity = US$5M/quarter (US$20M/year) = 100% Achievement Stay in Budget = 100%, 10% over Budget = 0%, 5% under Budget = 150% NOTES: 1. 2006 contract activity calc is very conservative: (YTD closed contracts) + (December's contracts risk weighted >= 95% likelihood to close) [Albert van Wissen, Global CFO, TomorrowNow] 2. Overachievement for both (a) Contract Activity, and (b) Customer Satisfaction, were calculated on a straight line basis instead of using accelerators. I am comfortable with this for 2006 assuming the overall funding % is approved, but will seek formally agreed accelerators for equivalent KPIs in 2007 [Andrew Nelson, CEO TomorrowNow] Discussed and agreed with Mark White and Thomas Ziemen © SAP AG 2006, Title of Presentation / Speaker Name / 67 67 GSS Oracle Strategy Review THANK YOU ! © SAP AG 2006, Oracle Strategy Review / Sep15, 2006 / T. Ziemen / 68 68

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