Asia Shared Services Discussion Deloitte Consulting LLP March 12, 2013

Asia Shared Services Discussion Deloitte Consulting LLP March 12, 2013

Content Introductions Our Understanding Methodology & Approach Case Study Change Management Considerations Team Structure Commercial Terms Appendix - Team Bios - Deloitte Capabilities -2-

Introductions Introductions Don Piotter Luis Ojeda Principal Engagement Principal Senior Manager Project Lead & Senior Advisor 1.415.218.9476 [email protected] 1.925.548.5769 [email protected] Don has 21 years of consulting experience, with 16 years of focus on Shared Services and Business Process Outsourcing. He leads Deloitte’s US West Region Shared Services and Outsourcing Advisory practice, and in the role has led Deloitte’s support for several Silicon Valley based companies. Don’s has conducted over 80 projects across the entire service delivery life cycle, including strategy, design, implementation, and post implementation optimization, across a broad range of functions, including Finance, Procurement, HR, IT, Call Center, and Facilities Management Over 60 of Don’s projects have had Finance in scope, across the full range of finance processes, including processes specific to technology companies such as fixed asset management for computer operations, lease accounting, revenue accounting, and complex intercompany transaction The majority of Don’s projects have been global, and several have had significant focus on development of Asia based shared service centers Clients include Facebook, Apple, Cisco, Agilent, eBay, JDS Uniphase, NIKE, Coca-Cola, Warner Bros, Exxon Mobil, Chevron, Allergan, Kaiser Permanente, Invitrogen / Life Tech., Cameron, and Interface Inc., Senior Advisor within Deloitte’s Shared Services and Business Process Outsourcing (BPO) practices More than 10 years of consulting experience and 7 within service delivery, managing complex global assessments and transitions Specializes in service delivery model optimization, outsourcing and shared service strategic assessments, business cases, implementation, contract negotiation, and transitions Clients include: Agilent, HP, Electronic Arts, Sprint-Nextel, Lucent Technologies, Yahoo!, Ingram Micro, NIKE, Barclays Global Investors, Cameron, CoreLogic Select Project Experience: Conducting a feasibility assessment and design for the migration of select finance processes from 8 APAC countries to a Singapore SSC Conducting an enterprise-wide assessment across 7 functions and more than 3500 FTEs in over 20 countries, resulting in the development of a integrated operating and hybrid shared service/outsourced model Assisting a client divest to a Tier 1 global outsourcing provider its existing SSC operation with 4000 FTEs and establishing a 10year outsourcing BPO and ITO long term partnership -3-

Our Understanding Our Understanding Equinix Finance can drive value from shared services – increasing the effectiveness and efficiency of Finance – Providing a platform for growth Equinix is currently planning / executing other initiatives – Global Campaign to Cash (global order to cash transformation effort) – Global Oracle EBS implementation An immediate opportunity exists to plan and implement shared services in Asia because: – There are finance operations in countries that could be more effectively and efficiently delivered from a central location – Centralization now will enable smoother and more effective rollout of other initiatives in Asia The first step for Asia is to develop a clear plan for implementation that: – Clearly defines the scope and sequencing of implementation, and aligns it with other initiatives – Establishes the business case, and a baseline for ongoing measurement of results relative to plan – Identifies likely change management issues and possible mitigations – Enables launch of implementation -4-

Approach & Methodology Our suggested approach for Equinix Asia shared services is based on our comprehensive and robust shared service methodology Assess Feasibility Define the scope and performances Key Objectives Plan the work Design Develop a detailed design for the business that fulfills the vision Plan software integration and development activities Develop business and technology goals, resource needs, and business case Design the approach for preparing end users Gather business and technology requirements Set the change imperative and conduct a change readiness assessment Build & Test Implement & Roll-in Configure business applications Deliver a functional solution to the enterprise Monitor and improve the system Complete interfaces, enhancements, and modifications Deliver the business benefits Conduct postimplementation reviews to ensure that the project objectives and business benefits were achieved Perform integrated technical and business testing Employ workforce strategy to recruit and staff Shared Services operations Develop training for end users Plan for implementation Implement technology infrastructure changes Outcomes Confirmed scope to maintain focus of project Detailed documentation for to-be processes Understanding of the current organizations’ operations, sites, and sizing Alignment on the vision and goals for the Shared Services organization Established baseline to measure process improvements and benefits realization Organization structure reflecting new job profiles System/functional and business requirements Training strategies/approaches created to support the organization in developing required skills Optimize Resolution of defects and Established governance documentation of user structure to provide errors guidance and enterprise decision-making Infrastructure and/or tools to support and measure Input and feedback from performance of Shared piloted locations to further Services operations improve processes and deliver benefits End user instructional materials and training Communications and schedule training delivered to prepare SSC staff for Refined implementation deployment roadmap -5- Develop a continuous improvement plan to realize benefits from the current project and to identify new opportunities for improvement Forward looking focus on tracking and assessing ongoing performance Determination of success based upon target metrics Identification of additional opportunities for future projects

Approach & Methodology We have tailored our methodology to develop Equinix’s strategy and plan for a Singapore SSC Assess Feasibility Build & Test Design Implement & Roll-in Optimize Customized Approach for Equinix 1 Gather Baseline & Assess Current State Weeks 0 – 2 2 Define Future State & Finalize Business Case 3 Develop Plan Week 3 - 4 Week 4 -5 Project Planning & Launch Review and Validate Data Collected Develop Baseline Assess Current State Define Future State Finalize Business Case SME Interviews Cost and Performance Baseline Current State Assessment Validate Roadmap Regional Future State Workshop Develop Implementation Plan Validated Future State Validation Meetings Business Case Roadmap and Implementation Plan Key meeting / workshop Key deliverable -6-

Approach & Methodology The first phases will build the baseline and assess current state 1 Gather Baseline & Assess Current State Define Future State 2 & Finalize Business Case 3 Develop Plan Weeks 0 – 2 Key Activities & Deliverables Roles & Lessons Learned Key Activities Complete project planning and pre-launch activities Equinix Roles Distribute data requests and compile data Confirm project team members and roles Identify key finance stakeholders and schedule interviews Facilitate introductions to process SMEs Serve as escalation for issues and lack of responsiveness Confirm objectives and scope of assessment Clarify governance structure, decision makers, and decision making process Confirm decision criteria Validate preliminary findings Deloitte Roles Develop project plan and project launch materials Develop, customize, and distribute Deloitte SSC data collection tools (data collection templates, process complexity surveys) Kick-off and launch project Work with Equinix to identify interview and workshop participants and associated scheduling Develop and distribute data collection template Gather and review baseline data Analyze current process environment across: Build baseline Conduct current state process, operations, and performance analysis Process complexity Systems and technology availability Organization Controls Lessons Learned Data collection requires lead time; schedule well in advance Overall migration readiness Current state analysis helps validate or negate perceived pain points Regulatory or record retention constraints can often be managed Key Deliverables Document governance process Financial processes baseline (costs, volumes, and performance) Current state migration readiness assessment -7-

Approach & Methodology Tools and deliverables for the first phase 1 Gather Baseline & Assess Current State Define Future State 2 & Finalize Business Case 3 Develop Plan Weeks 0 – 2 Tools & Deliverables Data Collection Tools Quantitative data request that captures volume, performance, headcount, and cost baseline Stability survey that measures level of automation, process stability and maturity, technology footprint and availability, and language dependency Process complexity survey that measures number of steps within the process, extent of “back and forths”, level of subjectivity, resource consumption and variability of inputs/outputs Location dependency survey that measures the type of interactions required and extent of face-to-face vs virtual Current State Summary Current state summary of in-scope processes, FTEs, and locations Migration readiness by in-scope processes Migration readiness summary by country Volume baseline that measures current state performance -8-

Approach & Methodology The second phase will define the future state and finalize the business case Gather Baseline & 1 Assess Current State 2 Define Future State & Finalize Business Case 3 Develop Plan Weeks 3 -4 Key Activities & Deliverables Roles & Lessons Learned Key Activities Equinix Roles Ensure availability of key resources for regional workshop Prepare and conduct future state workshop with regional SMEs and stakeholders to validate: Support workshop logistics as required (calendar invites, room reservations, rescheduling other meetings) Review workshop pre-reads and participate in planning / alignment meetings Validate current state – Baseline and current state – High level requirements for future state design and operating model – Future state vision Validate future state Validate business case Refine baseline and develop business case, inclusive of future state vision Initiate roadmap development and detailed planning Deloitte Roles Develop workshop materials (preread, facilitation aides, and summary outputs) Develop preliminary future state; validate and finalize business case Key Deliverables Future state vision and design Business Case Develop, validate, and finalize business case Lessons Learned Future state should be an achievable target within the planning horizon Regional SME input is critical, but final designing and decision making should not be dependent on consensus -9-

Approach & Methodology Tools and deliverables for the second phase Gather Baseline & 1 Assess Current State 2 Define Future State & Finalize Business Case 3 Develop Plan Weeks 3 - 4 Tools & Deliverables Future State Vision Recommended regional delivery model and integration into existing global operations Process taxonomy defining what processes/activities remain local and which are migrated to the Singapore SSC Directional view of local vs. shared finance operations Business Case Financial model that measures base case and captures one-time and recurring costs relative to expected benefits Model considers – Equinix’ s current cost structure and planned growth – Anticipated attrition – Market wage rates to ensure appropriate talent model Business case outputs include NPV, payback period, Capex , and cash flow summary - 10 -

Approach & Methodology The third phase will develop roadmap and detailed plan Gather Baseline & 1 Assess Current State Define Future State 2 & Finalize Business Case 3 Develop Plan Weeks 4 - 5 Key Activities & Deliverables Roles & Lessons Learned Key Activities Identify and recommend migration sequencing Equinix Roles Validate roadmap Conduct working session(s) or meetings to validate migration sequencing and roadmap Develop validated roadmap Assist in change management issue identification Validate implementation plan Preparing launch activities for quick wins or immediate next steps Document expected change management issues and list possible mitigations Define detailed implementation plan with considerations for the following relevant workstreams Value Deloitte Roles Develop preliminary roadmap and secure validation/sign-off Develop preliminary integration plan and secure validation/sign-off Develop funding strategy packet Process Information technology Lessons Learned Linking roadmap to inflight initiatives and other relevant programs reduces confusion and perceived overlaps Funding may be difficult to secure without linkage to broader purpose than simple cost reduction Change management effort is relatively light during this phase, because the substance of changes is not known until the assessment is completed; change management effort is substantial in subsequent phases Identifying quick wins and launching immediately increases the likelihood that the strategy will be executed Tax Security & controls Change management Organization Facilites Determine required buy-in and socialization of Singapore SSC plan and develop associated funding strategy Key Deliverables Roadmap Detailed implementation plan Funding strategy - 11 -

Approach & Methodology Deliverables for the third phase Gather Baseline & 1 Assess Current State Define Future State 2 & Finalize Business Case 3 Develop Plan Weeks 4 Tools & Deliverables Roadmap High-level roadmap that provides executive level guidance on key activities and timing Serves as a valuable buy-in and socialization tool Identifies in-flight initiatives and critical organizational dependencies Highlights sequencing of country migrations by sending locations, to address top-of-mind questions Design Phase Project Plan Project plan by program threads that aligns to the roadmap Identifies specific steps within each thread, duration, and owner Provides next-level of detail and serves as the charter for program threads - 12 -

Case Study Singapore SSC Case Study Background The client was in an environment of global expansion, but suffering from the effects of uncertain economic environment. In response, the company launched an initiative to drive efficiency across its global operations. Subsequently, the company expanded its focus to efficiency and productivity from corporate functions, including finance and human resources. Challenge In addition to its effort to increase corporate efficiency, the company was exploring finance shared services to: – Enable business growth – Create a “plug and play” operating platform so that operating units could move quickly into new markets – Create a proof of concept – Implement and transition a successful shared services operation in the APME region that can serve as a model for other SSC regional operations – Standardize finance and HR processes across APME; scope included 29 FTEs across Singapore, Malaysia, Australia, China, UAE, Indonesia, India, and Brunei; Approach To develop the plan for standardizing, improving, and consolidating select finance processes, our team helped the client: – Design a standard process for Accounts Payable (AP) and Fixed Assets (FA) across the APME region – Develop a business case for the investment required to regionally standardize and optimize their operations – Create a transition approach that could be leveraged for other processes or regions – Develop an implementation plan to move work from various locations in the region into Singapore In addition, our team identified shared service best practices for HR processes already consolidated into a shared services model in the APME region Value Delivered/Results A detailed design for standard processes for AP, T&E, and FA across the APME region A robust business case that outlined the required investment in this small scale proof of concept while demonstrating the potential for payback within five years An executable transition plan to move forward with the consolidation of finance processes in an APME service center A high-level assessment of the company’ shared HR platform against best practices Client replicated our approach and the process to 1) expand scope into the Singapore SSC and 2) implement a European SSC in Romania - 13 -

Team Structure Recommended Team Structure Project Leadership Equinix Deloitte Don Piotter David Wilson Engagement Partner Subject Matter Advisors Todd Kovacevich Equinix Advisor Hugo Walkinshaw APAC SSC Advisor Project Management Luis Ojeda Wee Gee Ong Extended Team Project Lead Core Team* TBD TBD TBD Australia China Project Manager Larry Eden or Manish Jain Project Manager TBD TBD Japan Indonesia Tay Lee Yeh or Rishabh Gupta Delivery Model TBD Singapore Nikhil Dhar Business Case * Core Team individuals are candidates - 14 -

Commercial Terms Professional Fees & Assumptions We are prepared to commence work on this project as soon as Equinix is ready. We estimate this project will take approximately 4-5 weeks of effort, but that could vary based on: – Scope / scale of Equinix Asia Finance operations – Feedback from this discussion on approach and deliverable scope – Availability of Equinix resources Deloitte will deploy an experienced team, with appropriate staff level support Based on our current understanding, and Deloitte Strategy and Operations rates for similar work at Equinix, we estimate total project fees to be , We will bill out actual travel and subsistence expenses for the duration of the project. Expenses on projects like this typically range from 10 to 15% of fees, however, every effort will be made to staff the project with regional resources, thus reducing expenses. International travel, at the request of Equinix, will be billed at actuals. Key project assumptions include: Scope of this engagement is for Finance processes in Australia, China, Japan, Indonesia, and Singapore Equinix will assign a dedicated project management resource to this project Work is expected to be completed from Singapore and Redwood Shores, CA, and to enable efficiency and manage costs, some of the work can be performed remotely Conference / work space will be provided by Equinix - 15 -

Appendix

Team Bios Core Team – Project Manager Larry Eden Manish Jain Manager Project Manager – Candidate 1 Manager Project Manager – Candidate 2 Kuala Lumpur, Malaysia [email protected] Delhi, India [email protected] Larry has over 6 years experience in finance and management consulting. He has extensive experience with finance shared services operations having worked in one for 2 years and provided consultancy services in designing and implementation of finance and treasury shared services. Clients include: San Miguel Pure Foods, PETRONAS, Ministry of Finance, Malaysia, Universiti Teknologi Malaysia, East Coast Economic Region Development Council Manish is a Manager with Deloitte’s S&O practice and has over 10 years of Shared Services / Outsourcing Advisory experience. He has expertise in finance, IT & corporate functions processes. Select Project Experience: Led APAC Work stream for global Claims Transformation initiative for top 2 US insurance company Implemented Finance and Accounting Service Delivery Strategy for a US transportation company and improved Order to Cash and Procurement to Pay processes bottom-line by 10million p.a. Re-engineered financial close, IT delivery, and procurement processes for a US Mutual insurance company Defined outsourcing strategy for a US consumer, financial and property information / analytics provider Set ‘Reporting & Analytics’ Shared Service Centre for a Fortune 500 US Insurance Company Designed “To-Be” process for a ‘financial vendor data management (for data vendors like S&P, MSCI etc.)’ for a US asset wealth management company Manish is trained on Six Sigma and Lean Six Sigma methodologies. He obtained his MBA from IIM, Calcutta and his B.Tech from IIT Select Project Experience: Lead for the AR, GL, FA and CO functional areas of the Wave 1 Implementation of San Miguel’s finance shared services center, identifying the FTE’s that are required for the shared services center, identifying and developing the chargeback mechanism to be used, training the client’s core team in the functional areas of AR, GL, FA and CO, execution of go-live and post go-live Project Team Lead for the Wave 2 Implementation of San Miguel’s finance shared services which included conducting training to the client’s core team, planning work shadowing activities, identifying scanner requirements and solution, identifying and executing golive activities and post go-live support activities. - 17 -

Team Bios Core Team – Delivery Model Tay Lee Yen Rishabh Gupta Senior Consultant Delivery Model – Candidate 1 Senior Consultant Delivery Model – Candidate 2 Kuala Lumpur, Malaysia [email protected] Delhi, India [email protected] Lee Yen has 8 years of experience in business consulting and operations optimization for finance, customer service and human resource processes. Her areas of expertise include process design and standardization, shared services feasibility, design and implementation, and performance management. She has project experience in Singapore, Indonesia, Philippines, China, Hong Kong, Australia, New Zealand and India. Clients include: Astari Niagara Internasional, DHL, Pfizer, San Miguel, SME Corp. Malaysia, Wal-Mart, Wilhelmsen Rishabh is a Senior Consultant in Deloitte’s Strategy and Operations group and brings with experience in the areas business transformation, process improvement, cost reduction, business case development, shared services strategy, outsourcing advisory services (F&A, Procurement, ITO) and Program management. Clients include: Goldman Sachs, Marriott Worldwide, and Sysco, HSBC, Deutsche Bank, Lehman Brothers, Pearson, Select Projects Experience: Conducted service delivery strategic assessment and design of future state service delivery model for F&A, Procurement, Sales & Marketing, HR, Customer Service processes for a market leader in food distribution and hospitality business. Worked with a global hospitality player to conduct a high-level assessment and provide recommendations on the strategic alternatives for transition of P2P functions (AP, T&E, P-Card) Managed services contract assessment, identifying cost saving opportunities, business case development and recommending negotiation strategy for a global publishing client Development of Day 1 plan, TOM and separation strategy for shared services (Finance, HR, Legal, Risk) associated with the sale of a global asset management business Select Project Experience: Finance Shared Services feasibility, for a shipping management company – Assessed finance service delivery model and potential for SSC and SAP, for 10 entities worldwide Finance Shared Services in KL, Malaysia for a global courier company – Supported several centralization and process improvement exercises in APAC Finance Shared Services in Chengdu, China for a global courier company – Supported accounts receivable centralization for 18 locations in China Finance Transformation in Indonesia for a manufacturing company – Identified finance process improvements; developed and implemented finance policies and operating procedures - 18 -

Team Bios Core Team – Business Case; APAC SSC Advisor Nikhil Dhar Hugo Walkinshaw Consultant Business Case Partner APAC SSC Advisor Delhi, India [email protected] Singapore [email protected] Nikhil Dhar is a Consultant with Deloitte Strategy and Operations and has 3 years of work experience in consulting. His major focus areas include Telecom and Technology Strategy, Shared Services, Outsourcing Advisory and Vendor Management. Clients include: Delta Airlines, Cricket Communications, T-Mobile, Sysco, Huawei, CIBC, Avon and Avaya Hugo has over fourteen years of management consulting experience and has provided assistance to clients in Japan, China, Hong Kong, Taiwan, the Philippines, Indonesia, Malaysia, Thailand and Singapore, as well as in the US and Europe. Hugo has spent the last ten years living and working in the Asia region, and is currently based in Singapore. Select Projects Experience: Hugo is the South East Asia leader for Deloitte’s Human Capital practice, and has worked with a number of multi-national and large local clients over the last seven years on organizational change management, HR technology and HR strategy initiatives. Developed a financial model and identified opportunities to quantify the net savings for a 100 M service delivery and outsourcing assessment across multiple functions of F&A, Indirect Procurement and HR for a food distribution company Clients include: Johnson & Johnson, Merck, Matsushita, Philips International, Seagate, Nalco, Praxair, Agilent, Natsteel, MACG Helped the world largest airline to identify the scale for an IT captive (shared service center), recognize specific opportunity areas, and establish a supporting detailed financial model to quantify the savings Helped in contract negotiations for Hosted Outsourcing deal for an US Telecom Carrier Data center Setup and operationalize the Vendor Management organization for a F&A deal an US Telecom carrier - 19 -

Deloitte Capabilities Deloitte’s Service Delivery Transformation Practice Highlights Global Firm Coverage: 165,000 people in 150 countries Service Delivery Transformation Deloitte Touche Tohmatsu Uniquely integrated shared services, outsourcing, customer service, and location strategy advisory 165,000 professionals in approximately 150 countries Strategy through implementation Over 1,000 projects and 3,000 focused Shared Services and Outsourcing professionals around the globe Proven methodologies, tools and templates Noted by Kennedy Consulting as a proven leader in Global Shared Services advisory Strongest location strategy practice in the world, with extensive experience in all global theatres Americas Over 550 Shared Services and Outsourcing Projects Over 1500 Consultants Europe Over 350 Shared Services and Outsourcing Projects Over 900 Consultants Asia Pacific Over 100 Shared Services and Outsourcing Projects Over 600 Consultants Among the large and most highly rated ERP and Finance Transformation practices APAC Shared Services Advisory Serving global multinational companies operating in the region Focus in service delivery excellence, resource and knowledge coordination, best practices, region-focused market intelligence and research, talent development, and enhancing mobility Deeply knowledgeable and expert with APAC countries, markets, and issues, particularly the Singaporean labor and economic environment Integrated across shared services, outsourcing, finance transformation, human capital, technology, tax, and ERS practices and services Over 100 shared service projects delivered in APAC - 20 -

Deloitte Capabilities Our Shared Service Clients “Deloitte is a leader for global shared services combining process, technical knowledge, change management capabilities, understanding of technology, and insight on labor and tax issues.” - Kennedy Information, Finance Management Consulting Marketplace 2009-2012: Key Trends, Profiles, and Forecasts - 21 -

Deloitte Capabilities Deloitte’s Shared Services Insights & Eminence Unparalleled Commitment to Enhancing the Base of Shared Services Knowledge We have a deep commitment to shared services research, advancing the body of shared services knowledge, and knowledge sharing Our activities include research, studies, points of view, and articles across the continuum of service delivery transformation – strategy, location, design, implementation, organization, governance, and operations Our biennial Global Shared Services and Outsourcing surveys and POV’s are industry standards We host Deloitte conferences, seminars, webinars, and trainings and actively participate in and contribute to the Conference Board and IQPC/SSON events and knowledge sharing Our compendium of service delivery transformation publications is available through Deloitte.com and upon request (see samples below) Recent Thought Leadership Examples 2013 Global Shared Services Survey. Deloitte’s biannual global survey on shared service trends. Insights from Deloitte’s 2011 global shared services survey Shared services: From “if” to “how” Addressing General and Administrative (G&A) Complexity: The next frontier in cost cutting - 22 - Enhancing Value from Your Service Delivery Organization: Leap ahead or lag behind? 10 ways to get more from your Service Delivery Organization

Deloitte Capabilities Deloitte is recognized by industry analysts as the leader in Business Operations & Finance Transformation Financial Management Consulting Practices (Globally) Operations Management Consulting Practices (Globally) Source: Kennedy Consulting Research & Advisory Source: Kennedy Consulting Research & Advisory “Deloitte has comprehensive multi-service offerings around M&A, supply chain management, and cost reduction that differentiate the firm’s service in the marketplace.” “Deloitte sits in a strong position among FM consulting providers, with positive market momentum stemming from comprehensive offerings across its Finance Transformation practice and continued heavy expansion of the breadth and depth of its capabilities globally.” - 23 -

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