Measuring the Value of Workday for M&A

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Workday enables faster M&A integration and other key M&A priorities, as evidenced by the following customer examples. Through core capabilities and embedded AI / machine learnings tools, Workday customers typically conduct M&A activities on average 10 – 40% faster than they did previously. In addition to acquisition frequency and complexity, key inputs (like estimated productivity loss during organizational change and number of employees affected per acquisition) impact Workday benefits estimates on M&A activity.

Culture of the Resulting Company5

4 Retention of Critical Employees

3 Minimize Disruption to Business Operations

2 Attainment of Synergies

1 Speed (Pre & Post Close) • Built-in mass upload capabilities for finance & HR data accelerates day 1 and future-state operational set up.

• A unified data model giving managers & executives analytics on the company’s financial & human capital health.

• Flexible and configurable business processes that capture fully controlled and auditable transactions.

• Planning unified w/ core financial & HR systems for accurate future-state workforce modeling & faster deal impact analyses.

• Embedded AI and machine learning enabled talent tools that enhance an acquired employee’s sense of belonging.

Key M&A Priorities Workday Capabilities

Successfully integrated processes resulting in significant reduction in errors and streamlined workflow to support hyper-growth (tripled in size with Workday)

“It’s a great testament to Workday that we were able to maintain our transaction volume during COVID- 19. Even better, we didn’t skip a beat in our P2P process and stood up over 15 new centers during the COVID outbreak in 2020.”

- Director of Financial Operations

Reduced acquisition integration from up to 180 days to 30 days (83% reduction)

“Like a lot of companies, we’re very acquisitive. When you’re bringing in a brand new culture and brand new organization, the first things new employees have to encounter are your HR and benefits policies…Workday just makes it really seamless when we bring these organizations into the Cardinal family.”

- Chief Information Officer

Hospital System 40,000+ employees

Supported efficient organizational growth through acquisition (from ~20K+ to ~40K+)

“Without Workday, it would have taken twice as long to integrate the additional organizations at likely twice the cost, requiring a larger HRIS team and outside consultants.” - Senior Director, HR Technology & Transformation

With strategic acquisitions key to growth strategy, reduced time to integrate an acquisition by 83% (6 months to 1) and time to execute org changes by 80% (5 weeks to 1)

“We wanted it [acquisition process] to be seamless for them [employees] so they could on day one, be welcomed to O’Reilly and complete their onboarding, taxes, direct deposit, policy procedures, all those things.”

- HCM System Administrator

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Measuring the Value of Workday for M&A

Resulting Outcomes

• Quicker time to integrate, quicker time to implementing acquisition strategy, and a quicker time to realizing expected synergies.

• Comprehensive analysis and quicker realization of headcount synergies and actionable organization charts.

• Faster time to total rewards integration results in a quicker time to close and a quicker implementation of retention strategies for top talent.

• A quick and engaging onboarding experience helps to create a sense of belonging from newly acquired employees, reducing immediate turnover.

Workday’s Key Capabilities

• Agile business process framework supports unifying processes across the organization as well as keeping up with the demand of the business as it evolves post acquisition.

• Up-to date, granular workforce reporting and robust reorganization modeling.

• Easily configured job, compensation, and benefit plans to support new organizations from Day 1.

• Unique onboarding processes and a manager insights hub (understanding of career aspirations, prior experience) can welcome newly acquired workers into the company, with a personalized touch.

The key capabilities of each Workday SKU listed below ensure outcomes aligned with the five key priorities of successful M&A. More detail on key capabilities and resulting outcomes for a select number of Workday SKUs are listed below. Together these outcomes result in real benefits for customers, most of whom can conduct M&A activities on average 10 – 40% faster with Workday (depending on acquisition size and complexity).

Resulting Outcomes

• Reduced time spent in interim consolidation processes where reporting is cobbled together. Combined entity financial and management reporting with drill down to the EE level enables visibility into the combined entity (globally) as soon as Day 1.

• Complete operational and reporting readiness quicker for post-close synergy capture program (lines of business, geographies).

• Stand up OTC process quicker for deeper visibility into cash planning / forecasting in the wake of spending on the deal.

• Full auditability to complete trend analysis, speed & reduce risk on post-close audits.

Workday’s Key Capabilities

• Global GL – automated consolidation, elimination, and translation. Unified with Workday HCM.

• Configurable company / entity hierarchies. • Drag and drop analytic charts. Delivered

financial scorecards and multi-dimensional reporting.

• Bank account management / reconciliation with single, unified settlement engine and cash positioning visibility

• Unified revenue management, AP, and billing / invoicing. Configurable billing models, including subscription.

• Best-in-class internal/SOX controls at the SOX 1 and 2 levels

Core HCM

Core Financials

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Measuring the Value of Workday for M&A

Resulting Outcomes

• Avoid restricting or slowing down post-close projects and innovation because of delays with procuring new vendors.

• Maintain control of spend and approval processes in the post-close period when policies are not yet fully settled.

• Build vendor consolidation roadmap faster by quickly identifying opportunities for synergies. Avoid missing opportunities to put contracts to bid.

• Give real-time visibility into achievement of procurement synergies, often one of the largest and most important buckets in a synergy model.

Workday’s Key Capabilities

• Automation throughout the P2P process (e.g., new supplier contract set up).

• Configurable business processes that can be unique for the target company while procurement policies have not yet been harmonized.

• Ad-hoc reporting to analyze contracts and renewal dates.

• Configurable dashboards reflecting purchasing synergies.

The key capabilities of each Workday SKU listed below ensure outcomes aligned with the five key priorities of successful M&A. More detail on key capabilities and resulting outcomes for a select number of Workday SKUs are listed below. Together these outcomes result in real benefits for customers, most of whom can conduct M&A activities 10 – 40% faster with Workday (depending on acquisition size and complexity).

Resulting Outcomes

• Avoid manual or paper-based fulfillment processes because of delays with loading new items, locations and vendors.

• Maintain control of inventory fulfillment workflows and approvals by easily configuring flexible business processes.

• Rationalize item master and supplier master to identify consolidation opportunities that reduce inventory waste and enable greater purchasing power with vendors and group purchasing organizations (GPO).

• Give real-time visibility into inventory fulfillment patterns and inventory and par replenishment processes to optimize inventory distribution network.

Workday’s Key Capabilities

• Automation throughout the inventory fulfillment process from requisition to receipt (e.g., inventory locations set up, new purchase item set up).

• Configurable business processes and inventory fulfillment preferences that can be configured based on newly acquired inventory locations.

• Mass upload capabilities for inventory locations (sites, bins and par locations), purchase items and suppliers from target organization.

• Configurable dashboards to manage inventory operations and easily highlight transactions that require attention.

Inventory

Procurement

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