Electronic invoicing has emerged as a strategic initiative for organizations to drive process efficiency and realize significant hard dollar savings through improved collaboration with cross-border trading partners. Learn from companies who have successfully deployed a global e-Invoicing program that complies with local tax authorities for digital signature authentication, VAT compliance, and archival for both buyers and sellers.

1. Global e-Invoicing Compliant Cross-Border Trade © 2011 Ariba, Inc. All rights reserved.

2. Speakers Ariba Host James Tucker Speaker Christiaan van der Valk, President, TrustWeaver © 2011 Ariba, Inc. All rights reserved. 2

3. Contribution to Public Revenue Approximately 30% of all taxes, which represent over 30% of GDP in OECD countries 3 © 2011 Ariba, Inc. All rights reserved.

4. Why the invoice? 4 © 2011 Ariba, Inc. All rights reserved.

5. Is electronic different? Viewed as both a threat and opportunity by tax administrations Threat because electronic information is more malleable, open networks exposed and massive automation errors can be catastrophic Opportunity to ease audit (click a button), lower costs through smaller audit surface Data mining “e-audit” opportunities Hard to escape different treatment due to massively different treatment in other laws and business practice (IT security market alone is worth >25 billion USD) For businesses: technology choices require more investment and thus predictability 5 © 2011 Ariba, Inc. All rights reserved.

6. Objectives of Most Businesses Cost-effective LEGAL CERTAINTY: know 100% for sure in advance that you are compliant MINIMUM AUDIT SURFACE: ensure quick, painless audits A UNIFIED APPROACH: use a single approach across all jurisdictions involved in your data flows INTEROPERABILITY with major market players, supply chains, etc. FREEDOM to change processes, people, systems, legal structures and operators without risk or audit costs 6 © 2011 Ariba, Inc. All rights reserved.

7. Legally permitted? All OECD member states except Japan 16 out of G20 members Very few other countries explicitly regulate conditions Huge difference in approaches 7 © 2011 Ariba, Inc. All rights reserved.

8. No Simple Regulatory Formula Prescriptive requirements Brazil 70% Mexico 60% EU <10% Strong mandate Fully optional New Zealand 50% Non-prescriptive requirements 8 © 2011 Ariba, Inc. All rights reserved.

9. Tax Audit Options Latin America, Russia EU, Other countries Australia, Netherlands 9 © 2011 Ariba, Inc. All rights reserved.

10. Automation Is Key, but Major Savings Can Be Achieved Without 10 © 2011 Ariba, Inc. All rights reserved.

11. Average Risk 11 © 2011 Ariba, Inc. All rights reserved.

12. Total Life Cycle Risk Mitigation 12 © 2011 Ariba, Inc. All rights reserved.

13. Takeaways Compliance has many facets that must be managed Change management is key Countries have different approaches Challenges can be overcome by focusing on common denominators and mature good practice definitions Risk-free global e-invoicing is not an abstract thing of the future Extremely cost-effective future-proof solutions exist Used successfully by thousands of companies already Tax administrations love it No company can afford to ignore the extraordinary benefits of e-invoicing 13 © 2011 Ariba, Inc. All rights reserved.

14. Ariba e-Invoicing James Tucker © 2011 Ariba, Inc. All rights reserved. 14

16. From 80% to 96% touchless

18. Increased on-time payment by 20%

20. 90% of global invoicing with Ariba

22. Collaboration Challenges: Supplier’s Perspective © 2011 Ariba, Inc. All rights reserved. 17 Buyer 1 Buyer 2 Buyer n Sourcing Sales why successful SE is critical Procurement Billing Supplier 1 AP/Finance Receivables Sourcing Sales Procurement Billing Supplier 2 AP/Finance Receivables Sourcing Sales Procurement Billing Supplier n AP/Finance Receivables Managing customers and documents Limited tools and expertise Multiple customer requests Managing customer master data

23. The Solution: The Networked EnterpriseTrading Partner Discovery, Connectivity and Collaboration © 2011 Ariba, Inc. All rights reserved. 18 Buyer 1 Buyer 2 Buyer n Sourcing Sales The Networked Enterprise Procurement Billing Supplier 1 AP/Finance Receivables Sourcing Sales Procurement Billing Supplier 2 AP/Finance Receivables Sourcing Sales Procurement Billing Supplier n Supplier n AP/Finance AP/Finance Receivables Receivables 50% More Likely to: Source: “The Rise of the Networked Enterprise”, December 2010, McKinsey; Jacques Bughin and Michael Chui  Gain Market Share  Achieve Higher Margins  Increase Sales

24. © 2011 Ariba, Inc. All rights reserved. 19 Buyer 1 Buyer 2 Buyer n The Solution: Ariba Collaborative Business CommerceSupplier Connectivity and Transaction Automation Sourcing Sales Collaborative Business Commerce Procurement Billing Supplier 1 AP/Finance Receivables Sourcing Sales Procurement Billing Supplier 2 AP/Finance Receivables Sourcing Sales Procurement Billing Supplier n Supplier n AP/Finance AP/Finance Receivables Receivables Ariba Commerce Cloud  Leading Technology  Largest Community  Global Capabilities

25. © 2011 Ariba, Inc. All rights reserved. 20 SELLERS BUYERS MANAGECASH Sourcing BUY Sales/Mktg. SELL Order Mgmt. Procurement Treasury/APFinance AR/Finance IT IT Ariba Collaborative Commerce Solutions TECHNOLOGY Applications Analytics Integration COMMUNITY Collaboration Partners Network CAPABILITIES Expertise Support Enablement 3rd Party Apps Business Intelligence Banks & Financing Integration

26. Network Adapter PO & Invoice Pro Extend 3rd Party Systems to All Suppliers with the Ariba Network Global supplier visibility, connectivity and collaboration Ariba Discovery Discount & Pay Pro Supplier Portal BUYERS SUPPLIERS Catalogs & Contracts 3rd Party Systems Direct MRO Catalog Punch-Out PO Automation Services NETWORK® Invoice Automation Buyer Payment Automation Indirect Banks/ACH IT 3rd Party Apps Business Intelligence Banks & Financing Integration 21 © 2011 Ariba, Inc. All rights reserved.

27. © 2011 Ariba, Inc. All rights reserved. 22 Ariba Global Compliance Austria Belgium Cyprus Czech Republic Denmark Estonia Finland France Germany Great Britain Hungary Ireland Italy Latvia Luxembourg Netherlands Norway Poland Portugal Romania Slovakia South Africa Spain Sweden Switzerland Australia Hong Kong Malaysia New Zealand Singapore Canada USA Puerto Rico

28. Ariba European Compliance © 2011 Ariba, Inc. All rights reserved. 23 Found compliant and signed off by KPMG Invoicing for domestic trade must be In local language Bulgaria Lithuania Slovenia Austria Belgium Cyprus Czech Republic Denmark Estonia France Finland Germany Great Britain Hungary Ireland Italy Latvia Luxembourg Netherlands Norway Poland Portugal Romania Slovakia Sweden Iceland Finland Russia Norway Estonia Latvia Denmark Lithuania Belarus Ireland Poland Netherlands UK Germany Ukraine Belgium Czech Republic Luxembourg Slovakia Moldova Austria Hungary Romania Switzerland Slovenia France Croatia Bosnia H-govina Serbia Bulgaria Montenegro Italy Macedonia Portugal Albania Turkey Spain Greece Cyprus

29. Roadmap AP Process Cost Savings Paper Based Zero - Touch Paper Free Imaging Enabled E-Invoicing Manual P-to-P Workflow PAYSTREAM FINANCIAL AUTOMATION SURVEY PAYSTREAM FINANCIAL AUTOMATION SURVEY 24

30. E-Invoicing Identified as The Primary Enabler for Working Capital 25 © 2011 Ariba, Inc. All rights reserved.

31. Savings Levers to Help You Build a Better Business Case $15 Million in Working Capital Impact for Every $1 Billion in Spend © 2011 Ariba, Inc. All rights reserved. 26 “ “ 70% Cost Take Out available resources “ “ 3-for-1 “ “ 9-for-1 “ “ 3-for-1 26

32. Q&A Take Action Get copy of slides – send Email request to jtucker@ariba.com Download copy of free CFO Research white paper at http://www.ariba.com/resourcelibrary Register for free Best-Practice Learning Series at www.ariba.com/programs/invoicenow– get CPE credits from IAPP Visit the Ariba e-Invoicing booth 27 James Tucker Director, Product Marketing Ariba Network & Financial Solutions Email: jtucker@ariba.com Phone: +1.650.390.1702 © 2011 Ariba, Inc. All rights reserved.

33. Questions © 2011 Ariba, Inc. All rights reserved. 28

34. “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. 29

35. Global e-Invoicing Compliant Cross-Border Trade © 2011 Ariba, Inc. All rights reserved.