29 march 2003 - 1 -oracle corporation confidential vtech holdings ltd. rex ma oracle systems hong...

29 March 2003 - 1 -Oracle Corporation Confidential

VTech Holdings Ltd.

Rex Ma

Oracle Systems Hong Kong Ltd.

- 2 -Oracle Corporation Confidential

Company background

Company Revenue & Net Profit after tax 2001 – 1,334.9 mil USD, 2002 – 959.8 mil USD, 2003 – 866.5 mil USD2001 – 1,334.9 mil USD, 2002 – 959.8 mil USD, 2003 – 866.5 mil USD 2001 – (215) mil USD, 2002 – 13.9 mil USD, 2003 – 40.8 mil USD 2001 – (215) mil USD, 2002 – 13.9 mil USD, 2003 – 40.8 mil USD

Company Background & No. of Staff With headquarters in the Hong Kong Special Administrative Region With headquarters in the Hong Kong Special Administrative Region

and state-of-the-art manufacturing facilities in mainland China, and state-of-the-art manufacturing facilities in mainland China, VTech currently has presence in 10 countries and approximately VTech currently has presence in 10 countries and approximately

17,500 employees, including over 740 R&D professionals in R&D 17,500 employees, including over 740 R&D professionals in R&D centers in the United States, Canada, Hong Kong SAR and mainland centers in the United States, Canada, Hong Kong SAR and mainland China. China.

Shares of VTech Holdings Limited are listed on both the Hong Kong Shares of VTech Holdings Limited are listed on both the Hong Kong SAR and London stock exchanges (SEHK: 303; London SE: VTH). SAR and London stock exchanges (SEHK: 303; London SE: VTH). Ordinary shares are also available in the form of American Depository Ordinary shares are also available in the form of American Depository Receipts (ADRs) through the Bank of New York (ADR: VTKHY).Receipts (ADRs) through the Bank of New York (ADR: VTKHY).


Company background Main Customers

During 2002 The Group’s largest customer accounted for During 2002 The Group’s largest customer accounted for approximately 12.1% of the Group’s turnover and the Group’s five approximately 12.1% of the Group’s turnover and the Group’s five largest customers in aggregate accounted for approximately 35.8% of largest customers in aggregate accounted for approximately 35.8% of the Group’s turnover during the year. Major customers such as AT&T, the Group’s turnover during the year. Major customers such as AT&T, SWISSVOICE AG, SWISSVOICE AG, DEUTSCHE TELEKOM AG, RADIOSHACK INTL. DEUTSCHE TELEKOM AG, RADIOSHACK INTL. PROCUREMENT, MOTOROLA, INC,. B.M.NAGANO (HK) LTD.,BRITISH PROCUREMENT, MOTOROLA, INC,. B.M.NAGANO (HK) LTD.,BRITISH TELECOMTELECOM

Vision of the company


Organization Chart

V T TV T e ch C o m m .

V T EV T e ch E le c.

C M SC o n trac t M fg /E M S

V T e ch C o rp .


VTech – Influence Map

James(US)CEO - VTT

C/S H 0

Patty LawCEO/Group CFO

F/S H 0 L GB

Alan WongChairman

S H 0 L

Ken Wong(HK)COO -VTT

C H + L RH

Edwin YingCEO - VTE

C/S H 0 LGBRH

Alan TsoCOO/CFO - VTE

F/C M/L + MGBRH

K W LeungOps/COO - VTE

Andy LeungCEO -CMS

H 0 L

Paul KanCIO -Group

T/C + H

GBRH

CK CheungOps -CMS

Ken CheungOps -CMS

H + M GBRH

Derek YiuCFO -CMS

U

L/M RHHL

VTT US


Global Recession & Controversial Corporate Investment


Market expectation – Better margin in 2003 & Upturn


Company Vision

Company Key Business Requirements

Challenges/Pain from internal & external affectingKey Business Requirements(Prospect’s Desired Results)

Re-live the Pain – A few sentences summarizing the tactical and consequential pains preventing the achievement of the KBRs.

Improve Profitability - Too many Disparate Systems without close integration lead to high cost of maintenance - Lack of Real Time visibility resulting in Long Delivery cycle, Weak ability to choose appropriate vendor and High stock management inventory cost

Customer Retention - Too many Sales Returns lead to Poor Customer Service currently. Rework order management are not completed so that extra effort are added. - Without on-line sales tracking and demand information, VTech had difficulty to understand the real need of the customers.

Expand Market Share - Without reliable forecast and on-line demand information, VTech had difficulty to grow their business globally- The current infrastructure cannot fully enable speedy Time-to-Market (e.g. manual process for handling R&D documents, product development cycle longer than expected)


Company Vision

Company Strategy Start thinking of total solution to improve & reengineer business process Start thinking of total solution to improve & reengineer business process Better cost control, Better cost control,

Reduce Disparate system

Strengthen Vendor performance evaluation Market Expansion Market Expansion

Accurate Demand Planning

Supply meet Demand improve R&D capability, improve R&D capability,

Manual process for R&D process

Product life cycle can be reduced Customer Retention Customer Retention

Reduce Sales Return

Understand the real customer need


Company Vision Company Strategy


Solution Deployed

Oracle Solutions Board Presentation – Retain Current or Move Forward (08/2002)Board Presentation – Retain Current or Move Forward (08/2002)

Target : Sponsor helps to propose to board of directors Feasibility Study - (09 – 10/2002)Feasibility Study - (09 – 10/2002)

Target : 3 product divisions (from top to operational) Vision Presentation – (11/2002 – 01/2003) Vision Presentation – (11/2002 – 01/2003)

Target : COO and product division’s managers Project estimation and US CRM presentation – (02/2003) Project estimation and US CRM presentation – (02/2003)

Target : IT & Corporate financial Solution Demo – (03/2003 – 04/2003) Solution Demo – (03/2003 – 04/2003)

Target : All product division’s managers & staff Negotiation – (05/2003) SAP product mapping, control approval…… Negotiation – (05/2003) SAP product mapping, control approval……

Key Extensions required by this company Centralized Information Management Centralized Information Management CRM BPI CRM BPI Production Lifecycle Management Production Lifecycle Management

VTech ERP Study with Gap Analysis

1

VTech PhonesERP Vision Study

1

Worldwide SCM Trends

1

• Joint venture producing compressors for air conditioners– Produce 3.5M sets per year, more than any other Chinese company

• Live on 11i– Discrete Manufacturing, Asset Management, Projects, Order

Management, iProcurement, Financials, Human Resources, CRM– Met goal of Euro compliance by January, 2001– Single interface for all customer-facing departments

Reduced inventory 75% and procurement costs by 70%Reduced inventory 75% and procurement costs by 70%

Increased mfg. productivity by 35% and labor efficiency by 70%Increased mfg. productivity by 35% and labor efficiency by 70%

“We have totally eliminated the complexity of integration from the process of expanding our

IT infrastructure – thanks to the built-in integration of Oracle’s E-Business Suite.”

-- Chen Jun, IT Director, Shanghai Hitachi

ShanghaiHitachi

VTech ERP Demo

20th March, 2003

1

T o w a rd s E x c e lle n c e G lo b a lly

P r e s e n t a t io n f o r V t e c h

• S i n g l e S o u r c e o f T r u t h

• W o r k f l o w O p t i m i z a t i o n

• E n t e r p r i s e I n t e l l i g e n c e

• T o t a l - i n t e g r a t e d S o l u t i o n

Phases Country BUProject Code Project Project Components

Es tim ate d

M andays Pr o je ct

M anage m e nt

as s is tance

Es tim ate d

M andays

Functional

Cons ultant

& DBA

Es tim ate d

M andays

Te chn ical

Cons ultant Total

1 1 HK VCO 1.2 Bill Management System 0 37 23 602 1 HK VCO 1.3 Financial - PRC 15 81 17 1133 Total for VCO 15 118 40 1734

5 1 HK VTT 2.1 ERP Core Distribution (Procurement, Order fulfillment, Shipping) 120 183 100 403

6 1 HK VTT 2.1 ERP Core Manufacturing (PMC and DE/CE) 0 206 42 2487 1 HK VTT 2.2 Sourcing, Supplier Portal 0 77 5 828 Total for VTT - Phase I 120 466 147 7339

10 2 HK VTT 2.1 ERP Core Advanced Supply Chain Planning 60 95 53 20811 2 HK VTT 2.1 ERP Core Warehouse Management and MSCA 0 103 34 137

12 2 HK VTT 2.1 ERP Core CRM 0 210 0 21013 2 HK VTT 2.1 ERP Core OPLM n/a n/a n/a n/a14 2 HK VTT 2.1 ERP Core Business Intelligence 0 65 0 6515 Total for VTT - Phase II 60 473 87 6201617 Total for VTT 180 939 234 135318

19 1 HK CMS 3.1 ERP Core Distribution (Procurement, Order fulfillment, Shipping) 120 214 15 349

20 1 HK CMS 3.1 ERP Core Manufacturing (PMC and DE/CE) 0 178.5 42 220.521 1 HK CMS 3.1 ERP Core Advanced Supply Chain Planning 0 123 21 14422 1 HK CMS 3.1 ERP Core Warehouse Management and MSCA 0 112 18 13023 1 HK CMS 3.2 Sourcing, Supplier Portal 0 52 5 5724 Total for CMS - Phase I 120 679.5 101 900.525

26 2 HK CMS 3.1 ERP Core CRM 0 135 0 13527 2 HK CMS 3.1 ERP Core OPLM n/a n/a n/a n/a28 2 HK CMS 3.1 ERP Core Business Intelligence 0 21 0 2129 Total for CMS - Phase II 0 156 0 1563031 Total for CMS 120 835.5 101 1056.532

33 1 HK VTE 4.1 ERP Core Distribution (Procurement, Order fulfillment, Shipping) 60 174 15 249

34 1 HK VTE 4.1 ERP Core Manufacturing (PMC and DE/CE) 0 191 42 23335 1 HK VTE 4.2 Sourcing, Supplier Portal 0 46 5 5136 Total for VTE - Phase I 60 411 62 5333738 2 HK VTE 4.1 ERP Core Advanced Supply Chain Planning 80 95 40 21539 2 HK VTE 4.1 ERP Core Warehouse Management and MSCA 0 87 16 103

40 2 HK VTE 4.1 ERP Core CRM 0 125 0 12541 2 HK VTE 4.1 ERP Core OPLM n/a n/a n/a n/a42 2 HK VTE 4.1 ERP Core Business Intelligence 0 21 0 2143 Total for VTE - Phase II 80 328 56 4644445 Total for VTE 140 739 118 99746

E n t e r p r i s e R e s o u r c e s P l a n n i n g ( E R P ) F i n a n c i a l

– O r a c l e P a y a b l e – O r a c l e R e c e i v a b l e – O r a c l e F i x e d A s s e t s – O r a c l e G e n e r a l L e d g e r – O r a c l e C a s h M a n a g e m e n t

D i s t r i b u t i o n – O r a c l e P u r c h a s i n g – O r a c l e S o u r c i n g – O r a c l e S u p p l i e r S c h e d u l i n g– O r a c l e I - S u p p l i e r P o r t a l – O r a c l e O r d e r M a n a g e m e n t– O r a c l e C o n fi g u r a t o r– O r a c l e A d v a n c e d P r i c i n g

M a n u f a c t u r i n g / P l a n n i n g – O r a c l e D i s c r e t e M a n u f a c t u r i n g – - O r a c l e B i l l s o f M a t e r i a l s – - O r a c l e C a p a c i t y – - O r a c l e C o s t i n g – - O r a c l e E n g i n e e r i n g – - O r a c l e I n v e n t o r y – - O r a c l e Q u a l i t y – - O r a c l e W o r k I n P r o g r e s s– - O r a c l e P r o j e c t M a n u f a c t u r i n g – O r a c l e M a n u f a c t u r i n g S c h e d u l i n g – O r a c l e D e m a n d P l a n n i n g – O r a c l e A d v a n c e d S u p p l y C h a i n

P l a n n i n g – - C o n s t r a i n t e d B a s e d P l a n n i n g – - G l o b a l O r d e r P r o m i s i n g – - O r a c l e I n v e n t o r y O p t i m i z a t i o n – O r a c l e W a r e h o u s e M a n a g e m e n t

S y s t e m s – O r a c l e M o b i l e S u p p l y C h a i n

A p p l i c a t i o n

C u s t o m e r R e l a t i o n s h i p M a n a g e m e n t ( C R M ) S a l e s

– O r a c l e S a l e s O n l i n e– O r a c l e I n c e n t i v e C o m p e n s a t i o n– O r a c l e i S t o r e– O r a c l e T e l e S a l e s– O r a c l e I P a y m e n t

S e r v i c e– O r a c l e F i e l d S e r v i c e– O r a c l e i S u p p o r t– O r a c l e T e l e S e r v i c e– O r a c l e D e p o t R e p a i r– O r a c l e I - e x p e n s e – O r a c l e I n t e r n e t T i m e

C a l l C e n t e r– O r a c l e A d v a n c e d I n b o u n d– O r a c l e A d v a n c e d O u t b o u n d– O r a c l e S c r i p t i n g– O r a c l e e M a i l C e n t e r

P r o j e c t – O r a c l e P r o j e c t R e s o u r c e M a n a g e m e n t – O r a c l e P r o j e c t a c c o u n t i n g

B u s i n e s s I n t e l l i g e n c e – O r a c l e F i n a n c i a l I n t e l l i g e n c e – O r a c l e P u r c h a s e I n t e l l i g e n c e – O r a c l e S u p p l y C h a i n I n t e l l i g e n c e– O r a c l e C u s t o m e r I n t e l l i g e n c e – O r a c l e S e r v i c e I n t e l l i g e n c e – O r a c l e S a l e s I n t e l l i g e n c e – O r a c l e I n t e r a c t i o n C e n t r e I n t e l l i g e n c e


Experience Learned

Named valuable experience gained from this account in sales or implementation.

Understanding the entire situation and regularly update – Understanding the entire situation and regularly update –

Finding Sponsors, Engagement, Rapid response, understanding, proof of concept, Vision brainstorm

TEAMWORK and Top Management Involvement TEAMWORK and Top Management Involvement

Cross countries, Cross LOB and Partner strategy. Customer Satisfaction in the presales cycle – Customer Satisfaction in the presales cycle –

More closer and Fast response

Understanding their individual and group expectation

Engage Finance, MIS, Operation department head frequently

More sponsors, more convincing

VTT CEO, HK and PRC staff feel Oracle is really have global presence

Configurable demo delivery

29 march 2003 - 1 -oracle corporation confidential vtech holdings ltd. rex ma oracle systems hong...

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