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Judy Sim:

Hello, everyone. And thank you for joining today’s webcast. We are here today to talk about the proposed Oracle and Taleo transaction that we announced on February 9^th. We will provide more details on what this combination will mean for customers and for partners. Joining me today are Mark Hurd, President of Oracle, Mike Gregoire, Chairman and CEO of Taleo, and Thomas Kurian, Executive Vice President of Oracle Development. We will start with an introduction from Mark. Mark?

Mark Hurd:

Hey, thanks, Judy. Welcome to everybody. First we’re really excited about this combination. Taleo is very strategic to Oracle. It’s highly complementary to our strategy. We built Fusion Human Capital Management as the most modern, state-of-the-art application in the industry. Taleo brings leadership in recruiting, completely additive as we weren’t building this ourselves.

Now adding recruiting and Taleo’s other talent management applications gives us the most comprehensive and modern cloud human capital management and talent management suite in the industry. No one else can deliver this. No one else can offer you best-in-class capabilities for every module.

It also adds scale to our cloud business, 5,000 customers servicing the biggest companies in the world — Starbucks, Best Buy, Hyatt, Blue Cross, American Airlines, many others.

Taleo’s cloud manages 15 percent of all U.S. hires. 240 million candidates are on the Taleo Talent Exchange. Up to 75 million transactions a day. Taleo has tremendous presence, so does Oracle. We believe Oracle now has the most comprehensive set of enterprise cloud offerings in the world.

For Taleo customers, we will invest more in R&D than Taleo could do alone. You’ll see value-add immediately with access to other HR-related, integrated functionality and quite frankly other capabilities in service, sales and marketing. You’ll see a continued focus on all of the customer segments, including both the Enterprise Edition and the Business Edition. You’ll be able to continue to leverage the expertise the Taleo employees bring, and an additional 18,000 support experts will be backing you as well as tens of thousands of other technology experts.

For Oracle customers, we continue to execute on our strategy, to be best-in-class at every layer and every module of the Oracle stack, continue to vertically integrate best-of-breed components into solutions that bring extreme total cost of ownership benefits to our customers, continue to deliver industry-specific IP and continue to make our IP available to you in any way you want to consume it. Your choice.

So no change to our strategy or to our Fusion roadmap and release schedule. Taleo is incremental to Fusion. It clips straight into our Fusion HR cloud, already our fastest-growing cloud application in the company.

We have an aggressive investment to deliver even more value to customers and their employees.

With that, let me introduce Mike. Mike is the Chairman and CEO of Taleo. I spent some time already with his management team and have spoken to the 1,400 employees at Taleo, a top-notch group, extremely talented, and they’re led by Mike who’s just created something really special at Taleo.

So, Mike, tell us more about Taleo and what you’re hearing from customers.

Great. Thank you very much, Mark. It’s a real pleasure to be here. At Taleo we’re really excited about this proposed combination and joining Oracle. For us, it makes a lot of sense to join forces with Oracle, a leader in HCM and a company committed to the cloud. Taleo is the leading provider of cloud-based talent management solutions. For over a decade, Taleo has helped companies attract, hire, manage, develop and reward employees to ensure they have the right people in the right places to drive business.

We have 1,400 experts in this area working for us. We service 5,000 customers, and Taleo manages 15 percent of all U.S. hires. Taleo has one of the world’s largest cloud deployments managing over 16 billion transactions a year.

So why is this important to customers? Our customers have been asking us to expand our offering to be more end to end.

This acquisition delivers that value faster and more effectively since Oracle has most of those components already. This includes not only HR-related cloud functionality, but it also has capabilities in other areas like customer service and sales, marketing. And, over the last week I’ve been able to speak to many Taleo customers, and I’ve received overwhelming positive feedback about the news.

They’re excited about the additional modules that Oracle has that complement what we already bring to market. They know they’ll have the option to deploy a complete suite of HCM operations and talent management in the cloud from one vendor. But they also can pick and choose the cloud functionality as they need it based on their individual circumstances. That flexibility is attractive to them.

An integrated set of HR functionality in the cloud allows for a single business process flow leading to increased efficiencies and talent intelligence and ultimately more effective organizational performance.

You know, the state of the HR SaaS market has changed. There’s an increasing need for an integrated HCM and talent management suite. One of the most powerful ideas in business is the idea that talent drives performance.

Recently in PWC’s 14^th Annual CEO Survey, leading CEOs have identified talent management as a major challenge and a key driver of business performance. As much as 70 percent of an organization’s expenses are invested in employees, yet most organizations know more about their laptops than their people and talent strategies needed to take into account the availability and cost of skills in different regions of the world.

Companies need to rebalance their skills and talent — in a response to talent and global competitive pressures. In a volatile economy, talent intelligence can make the difference. Companies have become lean. Senior management expects HR to be able to deliver and replace a worker almost immediately. This has added a significant burden to HR to make sure that they are consistently working on a pipeline of candidates to fill vacancies quicker than ever before.

HR must also manage another large group of employees that includes an ecosystem of partners, consultants and contingent workers.

Huge shifts in the way traditional talent management activities are impacted in the social arena — for example, the recruiting. In 2005, the employee referral rate for external hires was about 30 percent. Today, that number has jumped to over 70 percent amongst leading companies. Taleo’s Talent Management Suite helps customers manage recruiting, performance, compensation, learning and succession planning. We give customers talent intelligence to capture meaningful information on people, help managers gain insight and act on it to drive better business performance.

So a quick recap — we’re really excited about joining Oracle. We believe this acquisition delivers what customers need and what they’ve been asking for. Our two companies are highly complementary both from a functionality standpoint, but also from a cultural standpoint. We’ve been impressed with the Oracle personnel, strategy and execution. There’s no doubt this acquisition will deliver value to our customers. They’ll have the backing of a $4 billion dollar-plus R&D budget and the additional backing of a sales team of 23,000 and 18,000 support personnel.

The talent and domain expertise that Taleo will bring to Oracle will complement the Oracle team very well. So overall, a great strategic fit for both companies.

So now I’ll throw it back to Judy.

Mike, fantastic. Thank you very much. Taleo has certainly built a very impressive talent management portfolio. And I’ve had a chance to meet some of the top management team with you. And we’re looking forward to working with them more closely as this transaction closes.

What I’d like to do now is introduce Thomas Kurian. Thomas is our Executive Vice President in charge of product development at Oracle. And Thomas is going to cover Oracle’s product strategy with Fusion and the addition of Taleo into that portfolio.

Now every organization today recruits and onboards new employees, sends them to learning and development programs, then measures the performance with performance management tools, engages them and offers them compensation and benefits to retain them. Then goes through a formal talent review process to measure how these employees do vis-à-vis other parts of their organization and frankly candidates they’re looking for outside the business.

What Oracle wants to do is to offer you a complete solution, complete talent management to find and develop the best people, complete human capital management to align, promote and reward them, with embedded business intelligence, social and mobile capabilities to enable people to make the right decisions quickly and effectively.

With this solution, we feel that we will allow employees to find the best — organizations to find the best people, develop them, have lower turnover and better results.

Taleo brings the market-leading recruiting and onboarding solution, learning and development solution, and goals, succession management and performance management capability.

Oracle adds engagement and retention with core human resources, compensation and rewards, with compensation benefits and payroll, talent review and Oracle’s own Fusion performance management products. We intend to unify the performance management capabilities from both Oracle and Taleo into a single offering that will allow — that has all the features and provides a seamless upgrade for all customers.

But by and large, Taleo and Oracle offer the best, most complete and most complementary suite of products in the marketplace.

Now we have an aggressive product plan to deliver against this vision. And I’m going to take each area and give you three examples of what we want to do.

First, recruiting and onboarding. We want to allow you to plan, predict and optimally source your workforce, to provide flexible and configurable recruiting and employee onboarding processes and to engage candidates the day that they consider joining a company and to develop them.

Here’s just a couple examples: to plan, predict and optimally source your workforce, we want to integrate predictive analytics with recruiting so you can understand your workforce structure, your recruiting needs and talent gaps, and secondly — to make sure that you have the right — you’re going after the best talent by integrating recruiting, performance management and talent reviews. We allow managers to define the critical roles they have and source the top talent they have for positions internally so you don’t even need to go outside the organization to find the best people.

Superior learning and development. We want you to engage and help your employees develop — to develop targeted training for job-related skills and competencies — and to monitor and encourage compliance with certification requirements. So, we want to enable you to give employees a well-defined learning curriculum as part of learning and goals management during the performance management process to define goals and help them build a learning curriculum to fulfill and meet these goals. Secondly, to bring employees into a mentoring and collaborative learning relationship using Oracle’s social networking tools with Taleo’s learning and our performance management products.

So it’s not just about engaging and helping employees develop, but also about delivering them the training that they need in order to grow in the organization.

Third, performance management. It’s really about recruiting — finding, recruiting and retaining the best people, continually developing them and helping your HR professionals offer more effective development programs to help these people grow.

So just let me give you a couple examples. To find, recruit and retain the best people, imagine if you had the capabilities as a manager, to look at your organization chart and browse the organization chart using a talent browser. So, you can look at the organization chart, but find the people within the organization chart using a talent browser. You can quickly and effectively find the best talent for a position or need that you have.

Secondly, we also want to create a talent directory. The talent directory is basically a portable talent profile that’s attached to every employee or candidate that’s then integrated with recruiting and sourcing. So, you can look outside of the company and look at all the pipeline of candidates that are out there and where you’re considering sourcing from, to get a view of what the talent outside the organization is. And so, this allows you to find, recruit and retain the best people.

Now after you’ve recruited and retained them and put them through a performance management process, you want to engage these employees and retain them. How do you do so? It’s very simple. You need to have a view of which employees are at risk and identifying new opportunities for talented employees who are at risk. Second, you want to empower employees to develop their own careers so that employees don’t feel that the only person responsible for their career is their manager or the HR professional, but to empower employees to develop their own careers. And third is to tailor human resources practices and to optimize them based on the population of employees, their skills profile and cultural practices.

So let’s give you two examples. We want you to identify — be able to quickly as a manager identify any employee at risk using predictive analytics from Fusion Human Capital Management integrated with Human Resources and Performance Management. So you can profile your entire employee base from human resources, subset people with specific talent profiles from performance management, and then use predictive analytics to get a sense of which employees are at risk and might cause turnover.

We also want you to enable your top talent to find alternate positions within your organization. So a top talent has a talent profile. In fact, every employee should have a talent profile. And they can then go onto the internal sourcing site and find positions within the organization that might be a best match for the talent and become an opportunity for them to get a promotion and find an alternate and perhaps a more fulfilling position.

Paying for performance. So being able to offer superior compensation and benefits. To us it’s about three important things: making effective compensation decisions with better information, providing employees with visibility to their total compensation, and making sure that you have flexible processes for rewarding people while maintaining budgets and centralized control as a management team. So making effective compensation decisions. We want you to be able to compare existing employees with people — within other peers within your organization using your talent profile to make sure that you’re paying your top talent differentially for performance, integrating performance management and compensation.

Secondly, to compare your top talent within the organization with candidates being hired from outside using Compensation Management and Recruiting, and then aligning employees’ bonus and incentive payment to corporate objectives using Hyperion integrated with Goal and Compensation Management.

Finally, talent reviews. Enabling employees to get better talent decisions because managers and HR professionals have more complete data, making that process of talent reviews transparent to the employee, and providing the HR professional and the manager a complete view of the workforce for talent reviews. So let’s give you two examples.

The first one is making sure that you have a better, complete view of talent within and outside the enterprise. We want to integrate recruiting, the portable talent profile, and the talent review process. So you can use the talent review to look at the people within your organization. You can use the talent profile and recruiting to look at candidates outside the enterprise so that you can then bring the two together when you’re considering promotions, hiring decisions and succession planning.

Secondly, enabling employees who are top talent to have visibility in the process. Any employee should have the ability to go on your recruiting and sourcing site, go through learning program, goal management and sourcing. So they go through a review process, they get goals to develop, they go to goal management and learning, and develop against those goals and objectives. They browse the internal talent using the talent

browser. They browse the organization to find mentors who can help them grow. And if they’re unhappy with their current position, they can use the internal sourcing solution to then find the best jobs that might exist and the best openings for them to develop as a career path.

So a lot of different capabilities delivered as an integrated solution, also made available as Software as a Service. So every aspect, there are three important points I want to make sure you understand. Oracle and Taleo’s products are complementary, and between Fusion Human Capital Management and Taleo Talent Management, we offer a full suite of capabilities delivered in Software as a Service.

Second, this solution can be purchased and used as individual modules. And it’s our intent to allow people to continue to use as individual modules. You can also use most of the suite or all of the suite. And the more pieces of the suite you use, obviously you can manage more capabilities that I talked about.

Finally, it works with any human resource management system, Oracle or non-Oracle, on-premise or in the cloud. No other vendor and no other combination in the market offers the same breadth of capabilities delivered 100 percent through Software as a Service as we do.

Customers are excited about this transaction because it enables them to fulfill the vision that we described.

Let’s give you a few examples: Hyatt Hotels, the leading global hospitality company, uses Taleo recruiting to identify candidates, make job offers and to do so while cutting cost, reducing turnover, reducing advertising expense for job placement, and improving productivity.

Qantas uses both Taleo recruiting and sourcing to reduce the recruitment approval time, make decisions faster in hiring, and hiring as many as 20,000 candidates in under two months.

Rogers Communications. They use the entire Taleo Talent Management Suite: recruiting, onboarding, performance, succession. They find benefits reducing the time to hire new employees and driving down attrition while drastically improving productivity.

On the Oracle side, our Fusion Human Capital Management Solution is used by Barry-Wehmiller, for example, a diversified, global manufacturing and technology services company, uses Fusion Human Capital Management delivered as Software as a Service, both human resources and benefits. And they find that they get better analytics, better decision-making, highly flexible HR processes, 100 percent delivered through Software as a Service in the cloud.

Red Robin, a restaurant chain, uses both Human Fusion — Fusion Human Capital Management and Talent Review delivered in a Software as a Service model. They find they can recruit employees faster with quicker onboarding and simplified training. They love the user experience. They find that embedded analytics helps them make decisions more quickly.

Living Social, a social networking company, is using Fusion Human Capital Management Software as a Service, human resources, benefits, compensation, analytics. And they chose it because it positions their business, which is very fast growing, for further expansion and on a global basis.

Finally, two other companies — the National Oilwell, or Varco. They use the entire Fusion Software as a Service Suite Talent Review, Performance Management, Goal Management, Compensation, a number of different modules, and they are able to use it for talent review processes, to find key gaps in skills and knowledge, and to retain the right employees by integrating Performance Management, Goal Management and Compensation.

And then D.R. Horton, the largest home builder in the United States, uses Fusion Human Resources, Payroll and Benefits to automate their human capital management processes and to get better and more simplified payroll processing and benefits administration.

So both Fusion Human Capital Management and Taleo offer world-class and highly differentiated capabilities. Bringing the two solutions together on a Software as a Service basis delivered to the cloud is really exciting for a lot of our customers, both Taleo customers and Oracle’s customers. And we’ve had very positive reaction to our joint announcement.

Why do customers see the value of the pending combination? Well, it’s for the following reasons. Taleo brings cloud services and domain expertise to Oracle. We’re going to increase the R&D investment in both Oracle Fusion Human Capital Management and Taleo Talent Management Products. We’re going to offer a comprehensive solution combining HR, Payroll and Talent Management. Taleo’s management employees will accelerate how quickly we bring these to market. And we’re committed to all Taleo and Fusion SaaS products.

We will continue to focus a highly specialized sales team and delivery organization just to this segment. A dedicated partner management and engagement model. And we will focus on maintaining and building upon all existing customer relationships.

So the key takeaways we want you to understand about our product plan. Oracle and Taleo together are expected to offer the best and most complete human capital and talent management offering in the cloud. Oracle will continue to offer talent management that works with Oracle and non-Oracle Human Resource Management and Human Capital Management Systems, whether those systems are on-premise or in the cloud. Oracle intends to integrate Taleo with the Oracle Public Cloud because it allows us to extend Taleo’s capabilities with social networking, identity management, business analytics and a number of other capabilities that are part of Oracle’s Public Cloud.

And Oracle is committed to investing in the existing Taleo products, including Taleo Business Edition, giving them greater investment and focus while maintaining the flexibility and choice of deployment models that we offer customers today.

So, we are very excited about the combination. We have a very clear idea of how we want to bring the products together, and the combination offers a very unique set of capabilities that no other competitor offers in the market.

Thank you again. Judy, back to you.

Judy Sim:

Thank you, Thomas. That concludes our presentation for today. And I want to thank everyone for joining us. There’s more information about the proposed combination of Oracle and Taleo. It can be found at oracle.com/taleo and also at taleo.com/oracle. We will continue to keep updating these two Web sites with more information as it becomes available.

Thank you so much.

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