QAD Corporate Overview September 2013
QAD Overview The Company
Summary The Company Automotive · Life Sciences · High Tech Santa Barbara Denver Detroit Chicago Mount Laurel Mexico City Atlanta Sao Paulo Melbourne Sydney Bangkok Guangzhou Shanghai Tokyo Beijing Wroclaw Mumbai Milan Barcelona Frankfurt Amsterdam Birmingham Limerick Dublin Antwerp Singapore Paris Strasbourg Johannesburg Established: 1979 Revenue: $252 M (FY13) Employees: 1,540 worldwide Headquarters: Santa Barbara, CA Operations: 19 Countries Customers: 2,800 Companies 97 Countries 30 Languages Product: QAD Enterprise Applications Stock: NASDAQ: QADA, QADB Automotive · Life Sciences · High Tech Industrial · Consumer Products· Food and Beverage
QAD Overview Products
Products Enterprise Financials Standard Financials Customer Management Analysis Management Reporting Multi-GAAP Budgeting Governance, Risk & Compliance Consolidations Allocations Shared Services Credit Tax General Ledger Multi Currency Accounts Receivable Payable Banking / Cash Management Cost Fixed Assets Enhanced Controls Logistics Accounting Sales & Use Tax Connector Standard Financials General Ledger Multi Currency Accounts Receivable Payable Banking / Cash Management Cost Management Fixed Assets Enhanced Controls Logistics Accounting Sales & Use Tax Connector Customer Management Customer Relationship Management Sales Quotations Sales Orders Sales Analysis Pricing Configurator Customer Self Service Trade Management Manufacturing Product Data Management Manufacturing Planning Manufacturing Execution Quality Management PRO / PLUS Manufacturing Scheduling Lean Advanced Planning & Scheduling Automated Data Collection Compliance Product Lifecycle Demand & Supply Chain Planning Production Planning Demand Procurement Distribution Sales & Operations Planning Supply Chain Execution Purchasing Supplier Performance Product Line Planning Distribution Requirements Planning Enterprise Operations Consignment Inventory Warehousing Release Management Transportation Management Portal Service & Support Service & Support Management Field Service Scheduler Mobile Field Service Enterprise Asset Mgmt Project Accounting Plant & Equipment Maintenance MRO Management Analytics Operational Metrics Reporting Framework Workflow Alerts Business Intelligence Mobile Interoperability Q-Xtend Integrated Customization Toolkit EDI eCommerce Document Management Output Management Integration Suite Process & Performance Performance Monitoring Framework Business Process Management Internationalization Local Regulations Local Business Local Bank Drivers
Demand & Supply Chain Planning Divisions Demand & Supply Chain Planning Solutions Demand Planning Distribution Planning Production Planning Procurement Planning Master Planning S&OP Integration Technology Single Click Collaborative (SCC) Benefits Inventory Reduction Service Level Improvement Flexibility Visibility
Complete Quality Solution Divisions Complete Quality Solution Solutions Document Control Corrective & Preventative Action (CAPA / NCR) Advanced Product Quality Planning (APQP) Production Part Approval Process (PPAP) Inspections & SPC Audit & LPAs Training Tracking Project Management Risk Management Calibration Records Dashboard Analytics Benefits Meets Compliance Requirements ISO FDA Single integrated quality environment
QAD On Demand Full Strength & Global ERP Portability Products QAD On Demand Full Strength & Global ERP Portability Software as a Service (SaaS) Industry Strength Market Leading
Enterprise Edition - EE QAD Overview Enterprise Edition - EE
EE Positioning 2014 Last Major SE Release OE 11 Support BUM 2013 EE Positioning 2014 Last Major SE Release OE 11 Support Support to 2020 +
Minimal Risk Low risk upgrade SE EE Why Upgrade to QAD Enterprise Applications EE Minimal Risk Low risk upgrade SE EE Upgrade Q-Scans identify areas of concern to alleviate unexpected events Proven methods and tools Many customers have done it successfully
Why Upgrade to QAD Enterprise Applications EE Easy to Learn Over 85% of the manufacturing and customer management applications are the same right now Few process changes outside of financials Same UI and functionality
Powerful for the Future Why Upgrade to QAD Enterprise Applications EE Powerful for the Future Better support for financial and legal compliance Extensible New functionality New modules
Support for Industry Best Practices Why Upgrade to QAD Enterprise Applications EE Support for Industry Best Practices Industry specific functionality built in Release scheduling for automotive Compliance module for life sciences Trade promotions for consumer goods Industry specific process maps Integrated Business Process Management
Support for Global Multi-Nationals Why Upgrade to QAD Enterprise Applications EE Support for Global Multi-Nationals Built-in localization Languages Currencies Business practices Legal requirements Available bank formats IFRS and Multi-GAAP support Multi-company consolidations Financial shared services
Supports Your Transition To IFRS Why Upgrade to QAD Enterprise Applications EE Supports Your Transition To IFRS Multiple base currencies for reporting allows local reporting in local currency and in corporate currency Currency gain/loss calculations automatically calculated on transactions Daybooks for European transactions Balance sheets and income statements based on alternate charts of accounts for subsidiary reporting
Supports Mergers and Acquisitions Why Upgrade to QAD Enterprise Applications EE Supports Mergers and Acquisitions Balance sheets and income statements based on alternate charts of accounts Flexible chart of accounts structure allows tracking projects, easy consolidations and ease in bringing new companies on board Allows for shared services through domains – can include shared accounts, customers, suppliers, parts, BOMs
Supports Multi-Company Consolidations Why Upgrade to QAD Enterprise Applications EE Supports Multi-Company Consolidations Fast flexible consolidation with account maps Supports proportional consolidations Automatic tracking of intercompany transactions Consolidate by accounting layer Supports simulations
QAD’s implementation methodology Why Upgrade to QAD Enterprise Applications EE QAD Easy On Boarding QAD’s implementation methodology Industry specific solutions Built in best practices 107 predefined processes 600+ work instructions 206 compliance points 115 training courses Pre-defined project scope Reduced implementation times QAD’s Easy On Boarding implementation methodology provides an excellent opportunity for companies seeking an industry best practice solution with reduced effort and cost of ownership. Easy On Boarding originated from our desire to support our customers with quicker, lower cost, prescriptive implementation. In addition, our Easy on Boarding implementation methodology can be used for both On Demand and On Premise customers. EOB leverages QAD’s Automotive Process maps which are aligned to MMOG/LE. The automotive process maps include 107 predefined processes, over 600 work instructions, 206 MMOG/LE compliance check points and 115 training courses. This methodology provides an out-of-the box solution or template for organizations implementing our applications. EOB provides a roadmap that you are able to customize where necessary and takes the guess work out of implementing QAD applications for our customers. 19
QAD Overview Financial Summary
Subscription Revenue TTM ($m) Financial Summary Revenues Revenue ($m) Recurring Revenue High Maintenance Renewal Rates Subscription Growth Professional Services Growth in On Demand Global Rollouts New Customers Conversions Subscription Revenue TTM ($m)
Operational results Financial Summary Positive EBITDA TTM EBITDA ($m) Excludes FAS123R Stock Compensation Expense Positive EBITDA Healthy operations Deferred Revenues On Demand
Balance Sheet Financial Summary Strong Balance Sheet Predictability Good Cash Position Continued Cash Generation Quality Accounts Receivable Controlled Status Deferred Revenues ($m) Cash & Equivalents ($m) Shareholders Accounts Receivable & DSO ($m)
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