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    Page 1 - October 10, 2014 PROPRIETARY AND CONFIDENTIAL

    November 15, 2006

    Solution Overview Presented to:

    Office of the President, UC

    teaching, research and public service

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    Agenda

    8:30 8:35 AM

    8:35 8:50 AM

    8:5010:00 AM10:0010:15 AM

    10:1512:00 PM

    Introductions

    SumTotal Background and Overview

    Functional SessionBreak

    Technical Session

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    Solution Demonstration - Introductions

    Dave Crussell, Chief Operating Officer

    Representing Executive Officer

    Bill Docherty, Senior Director, Product Management

    University of CA Technical Program Manager

    Katie Khera, Practice Director, Professional Services

    University of CA Program Manager

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    SumTotal BackgroundLeader in emerging mission critical space

    The largest provider of learning and business performance technologies and

    services700+ employees

    Financial leader

    Expected $100+ million in annual revenue

    Largest market share by revenue

    45% greater than next nearest competitor

    Largest customer base

    1500+ enterprise customers

    17 million users worldwide

    International Presence

    Offices across the globe

    Product localized in 14 languages

    Large Enterprise Experience (over 100,000 learners)

    Citigroup, Allstate, Lowes, Motorola,Glaxo Smith-Klein,HSBC, JP Morgan Chase,

    AT&T, Starwood, Vodaphone, Cendant, many othersService metric leader

    Double industry average of on-time, on-budget

    0%

    20%

    40%

    60%

    80%

    100%

    On Time On Budget

    SumTotal

    Industry Avg.

    Commitment to Customer Success

    Market Leader 2006

    Saba

    14%

    Plateau

    7%

    Oracle

    6%

    SAP

    5%GeoLearning

    6%

    Others

    42%

    SumTotal

    20%

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    Clear Industry Leader by Revenue and Customer Count

    Source: Bersin & Associates, Learning Management Systems 2004

    SumTotal Systems2006

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    MindSolve Acquisition Positions SumTotal as Leader in Talent Management

    SumTotal Acquired MindSolveNov 14th

    SumTotal only vendor to provide Best-in-Breed in learning and performanceMindSolves rich, patented technology and deep domain experience cannot be

    easily replicated

    Multiple deployment options allow SumTotal to provide best solution tocustomers

    Performance Management is the strategic enabler:

    Determining if all other TM processes are working

    Reporting learning effectiveness

    Identifying the right skills to hire

    Proving baseline for pay for performance

    Builds base on skills & competency management

    Learning management has the highest switching costs: highest usage andmanages compliance

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    SumTotal Strategy Moving Forward

    SumTotal Strategy After MindSolve

    Integration and Data Platform

    Competency Management Platform

    RecruitmentManagement

    ($660M)

    PerformanceManagement

    ($180M)

    LearningManagement

    ($545M)

    Compensation

    Management($290M)20%

    12%

    17%

    25%

    Web Services / Portal / Reporting and Analytics

    Cont

    ent

    Management

    KnowledgeM

    anagement

    Sources: Yankee Group, Gartner Group 2005 Market Size and 3 Year CAGR

    Best-of-Breed Solution Offered

    Key Functionality Offered

    Solution provided through partners and openintegration

    Learning management is the strategic backbone:

    Highest usage in Talent Management

    Compliance management

    Supports knowledge transfer

    Performance Management is the strategicenabler:

    Determining if all other TM processes are

    working

    Reporting learning effectiveness

    Identifying the right skills to hire

    Proving baseline for pay for performance

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    Regulatory Compliance at UC

    Objectives of the University of California

    Priority is to Track Compliance Training

    Provide Central Management of Compliance-Related Training

    Activities

    Adhere to Internal Compliance and External Compliance (e.g.Ethics, Sexual Harassment, etc.)

    Must Have Accurate Information for Audit Requirements

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    Regulatory ComplianceHolland America Case Study

    Challenges

    Floating City with Internal and External Compliance Requirements MunicipalHealthcare, Security, Firefighting, Waste Treatment

    Other ServicesHousekeeping, Food Prep, etc.

    Over 100 Government Bodies Regulate Its Compliance

    Potential Severe Penalties

    Grounded Ships and Fines, High Liabilities

    SumTotal Solution

    Transformed Its Compliance Training Program

    LMS Has Eliminated Lost Certificates

    No More Onerous Data Entry

    Cost Savings Lowering Phone, Fax, and Mailing Charges

    Accurate Reporting

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    Effective Consolidation and Automation at UC

    Objectives of the University of California

    Combination of Separate Learning Communities

    Moving towards a Robust, Scalable, and Consistent LMS

    Migration of Legacy Data

    Connected Infrastructure for Global Tracking and ReportingEfficient and Cost-EffectiveLess Paper Process and Manual Input of Data

    and Reporting Procedures

    Integration of Campus Instruction-Related Systems

    Accomplished with Long-Term Vendor Relationship

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    Consolidation and AutomationNational College for School Leadership

    Challenges

    Large and Diverse Target Audience130,000 Users

    Inconsistency in Program Delivery and Administration

    Shortage in Current and Projected Skills for Administrative Staff

    SumTotal Solution

    Fully Integrated SolutionBlended and Personalized Learning

    Created a Paperless System for NCSL

    Learning Content Developed Centrally and Delivered to DifferentLocations

    Provided a Quicker Path to Certification

    High User SatisfactionKey to Support for Future Initiatives

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    SumTotal Solution Set

    SumTotal Systems Incorporated provides an application platform & associated services thathelp organizations manage and deploy mission-critical information, skills, and knowledge across

    all business processes

    The SumTotal Enterprise Suite is an integrated suite of eight business performancemanagement applications delivering end-to-end capabilities that improve employee proficiency,

    extended enterprise productivity and bottom-line results for the organization

    TotalLMScomplete learning management

    TotalLCMScontent management and creation

    TotalVCSlive training

    TotalDashboardpredictive analytics application

    TotalPerformanceperformance management application

    TotalAccessoffline/mobile learning application

    TotalInformationinfo management application

    TotalCollaborationcollaboration portal