Microsoft in Mining - From the Pit to the Ship. Mining – Significant Opportunity in AU The mining and resources sector is expected to keep growing faster.

Microsoft in Mining - From the Pit to the Ship

Mining – Significant Opportunity in AU

•The mining and resources sector is expected to keep growing faster than the rest of the Australian economy for the next four years

•Analysts forecast 3.65% growth during 2007-2011, taking the industry to a value of $73.02 billion by 2011, making up 7.95% of the year's GDP* (*Australia Mining Report Q3 2007, Business Monitor)

•Microsoft aims to position the Microsoft platform and accompanying partner applications as a foundation underpinning the mining supply chain.

•Focus technologies include:•Microsoft Dynamics•Microsoft Office system•Microsoft BizTalk Server•Microsoft Exchange Server•Windows Server System•Windows Mobile

Mining in AU – Minerals Exports

Production growing at 8%

Mining in AU – Economic indicators

•Australia has the fifth largest iron ore holding in the world•Australia’s EDR of iron ore is 16.4 Gt - about 10% of world•Australia is largest exporter of coal, iron ore, lead, diamonds, rutile, zinc and zirconium•The mining industry is Australia's second largest export earner (after manufacturing)•05/06 exports increased 20% - largest were:

•Coal, not agglomerated, up $7.2b (42%) •Iron ore and concentrates, up $4.4b (54%) •Gold, non-monetary, up $1.6b (29%) •Natural gas, up $1.1b (36%) •Aluminium, up $1.1b (26%).

•Mining 4-5% of GDP: US$729.2B•Mining and energy exports account for 65% of country’s exports

**Source – ABS Yearbook Australia 2007

Mining in WA – Economic indicators

•Over 97% of iron ore production occurs in the Hamersley Basin (WA). •WA has almost all of Australia's EDR - about 92% occurring in the Pilbara district•$50B mineral & petroleum products annually•Compare: tourism is $4.3B / yr•$34B in projects underway:

•44 energy ($23.7b)•8 minerals processing ($3.3b)•10 Iron ore ($7b)

•$97B Proposed:•7 LNG ($40b)•11 Iron ore ($12.6b)•5 Alumina processing ($9.6 b)•31 black coal ($7b)•13 copper ($6.2b)•Other ($21b)

Mining Market Data – Total IT Spend

•Total IT Spend (Software, Hardware & Services)•Doesn’t include greenfields; oil and gas includes large mining entities eg BHP, Rio

•Total IT Spend (Software, Hardware & Services)

Source: Microsoft research based on IDC Data

Mining Market Data – Total IT Spend, Services

•Doesn’t include greenfields; oil and gas includes large mining entities eg BHP, Rio

•Total IT Spend (Software, Hardware & Services)

Source: Microsoft research based on IDC Data

Services OpportunityIndustry Vertical Detail CAGR% Revenues in US Dollar [ USD]      FY06-09 FY06 FY07 FY08 FY09 FY10 FY11Manufacturing Aerospace & Defense Mfg. 3.6% $ 39,548. k $ 40,573. k $ 42,219. k $ 43,992. k $ 45,534. k $ 47,090. kManufacturing Automotive & Industrial 3.2% $ 231,774. k $ 236,932. k $ 245,666. k $ 255,073. k $ 263,075. k $ 271,151. kManufacturing Biotechnology 0.9% $ 5,443. k $ 5,334. k $ 5,349. k $ 5,589. k $ 5,994. k $ 6,424. kManufacturing Chemicals 0.9% $ 66,503. k $ 65,168. k $ 65,370. k $ 68,319. k $ 73,285. k $ 78,550. kManufacturing Consumer Goods 3.7% $ 301,560. k $ 309,784. k $ 322,773. k $ 336,759. k $ 349,009. k $ 361,409. kManufacturing High Tech & Electronics 3.8% $ 244,931. k $ 251,680. k $ 262,306. k $ 273,749. k $ 283,788. k $ 293,921. kManufacturing Medical Device 4.8% $ 1,334. k $ 1,385. k $ 1,458. k $ 1,537. k $ 1,610. k $ 1,683. kManufacturing Metals & Mining 1.4% $ 19,644. k $ 19,344. k $ 19,498. k $ 20,477. k $ 22,072. k $ 23,765. kManufacturing Oil & Gas 0.9% $ 250,906. k $ 245,827. k $ 246,550. k $ 257,627. k $ 276,308. k $ 296,109. kManufacturing Pharma 1.5% $ 9,097. k $ 8,967. k $ 9,047. k $ 9,510. k $ 10,260. k $ 11,056. kManufacturing Pulp, Paper & Wood 1.4% $ 13,511. k $ 13,301. k $ 13,404. k $ 14,073. k $ 15,166. k $ 16,326. kManufacturing Tobacco -1.1% $ 12,279. k $ 12,055. k $ 11,979. k $ 11,897. k $ 11,708. k $ 11,481. k

Mining Market Data – Total IT Spend, Software

•Doesn’t include greenfields; oil and gas includes large mining entities eg BHP, Rio

•Total IT Spend (Software, Hardware & Services)

Source: Microsoft research based on IDC Data

Software OpportunityIndustry Vertical Detail CAGR% Revenues in US Dollar [ USD]      FY06-09FY06 FY07 FY08FY09 FY10FY11Manufacturing Aerospace & Defense Mfg. 6.9% $ 12,403. k $ 13,433. k $ 14,347. k $ 15,155. k $ 15,997. k $ 16,883. kManufacturing Automotive & Industrial 6.6% $ 71,155. k $ 76,828. k $ 81,828. k $ 86,193. k $ 90,717. k $ 95,477. kManufacturing Biotechnology 10.7% $ 6,561. k $ 7,378. k $ 8,157. k $ 8,892. k $ 9,676. k $ 10,506. kManufacturing Chemicals 10.7% $ 80,297. k $ 90,411. k $ 99,988. k $ 109,020. k $ 118,655. k $ 128,858. kManufacturing Consumer Goods 7.7% $ 81,554. k $ 88,997. k $ 95,767. k $ 101,909. k $ 108,257. k $ 114,901. kManufacturing High Tech & Electronics 7.0% $ 79,024. k $ 85,684. k $ 91,598. k $ 96,873. k $ 102,427. k $ 108,291. kManufacturing Medical Device 8.1% $ 418. k $ 457. k $ 494. k $ 528. k $ 564. k $ 601. kManufacturing Metals & Mining 11.2% $ 23,647. k $ 26,744. k $ 29,715. k $ 32,553. k $ 35,598. k $ 38,830. kManufacturing Oil & Gas 7.8% $ 73,349. k $ 80,376. k $ 86,430. k $ 91,805. k $ 97,388. k $ 103,143. kManufacturing Pharma 11.3% $ 10,961. k $ 12,406. k $ 13,798. k $ 15,131. k $ 16,563. k $ 18,082. kManufacturing Pulp, Paper & Wood 11.2% $ 16,242. k $ 18,378. k $ 20,414. k $ 22,358. k $ 24,444. k $ 26,656. kManufacturing Tobacco 2.7% $ 3,318. k $ 3,460. k $ 3,553. k $ 3,598. k $ 3,629. k $ 3,648. k

Mining Market Data – Software Category Report, Metals & Oil/Gas

Source: Microsoft research based on IDC Data

Microsoft Mining Objectives

Objectives•Raise customer awareness of Microsoft platform (including Axapta) as relevant and providing an end to end solution for mining•Raise partner awareness of Microsoft Axapta and platform being a viable platform for the sector•Recruit and train partners interested strategically in the sector•Generate demand and optimise opportunities for MS platform•Generate partner services revenue

Microsoft Mining Messaging

Bill of Materials (customer & partner):

•BDM brochure•TDM brochure•BDM poster•Key partner inserts (for consortia bids)•Partner ready EDM•Animations – for events, demos•Online content•PPT decks – Customer, Partner ready•Partner business development sessions•Battlecard•Event stands•Advertisements

Microsoft Mining Timeline

September, November, Feb, June 3rd party tradeshows – (eg AIMEX, Permec) - awareness raising

December - January BOM completed; Partner EDM’s sent to all interested partners

January - February 6 partner inserts developed for use in partner demand generation activities

February Mining Partner Readiness training – 4 cities – 72 partners registered

March Website completed (extensive partner presence by solution – 18 partners); Mining roundtable with the Economist (Perth) – key EPG and MM accounts targeted – business level messaging

May Partner Networking events – mining focus – 4 cities

April - May APO roundtables – mining specific in Perth and potentially Adelaide, depending on partner interest and budget

June-FY09 Drive customer references; more demand gen

Microsoft Mining – how to get involved

1. ATTEND the Partner training in February – SYD, MELB, BRIS, PERTH2. RECEIVE marketing materials as follow up from session today3. DOWNLOAD relevant marketing materials from Partner portal4. COMPLETE partner online profile to feature on Microsoft mining

website5. COMPLETE mining case study – funding available6. Work with Microsoft to develop your own messaging that aligns to

overall vision and message – in return, partner generates demand and shares pipeline

For more information on all of this:• Talk to your Partner Account Manager• Email [email protected]

Microsoft Mining Messaging

BDM brochure•Supply chain for mining•Key mining pain points•End to End•Microsoft scenario•Customer testimonials•Detail of partner solutions as well as Dynamics•Why Microsoft in mining

Microsoft Mining Messaging

TDM brochure•IO methodology•All platform workloads•Critical platform workloads mapped to key mining solutions•IO customer testimonials