1 Superior Publishing Software for the future John Lawson, Klopotek UK

Parsippany, New Jersey London Amsterdam Paris Berlin Munich Delivering software solutions for 20+ years 2 Klopotek software supports more publishers and information providers, with more users in more locations, developing and distributing more products around the world than any other software company. Klopotek is a leading supplier of international standardized software and consulting services for publishers of digital products, books and journals. Corporate Headquarters Berlin, Germany Regional Sales and Consulting Offices Amsterdam, London, Munich, Paris, Parsippany 175+ employees (publishing software professionals)

Customers trust our software

 4,200,000 titles / products  Fully international and scalable to multi-company corporation  Products and Assets  Metadata  Editorial and Production Workflow Product Planning and Management 4

 500,000 authors managed on 250+ Klopotek CR&R systems  1.2m author contracts  £3bn sales revenue processed for royalties (plus 27%)  3m royalty postings, £500m royalty payments  750k royalty statements per year Sophisticated Contracts, Rights, Royalties Software 5

 £5.5bn subscription revenue  4 million subscriptions Order and Subscription Processing 6 Source images: ©  2014 Roll out of Klopotek O2C system for all online products

7 Klopotek Solution. Fully integrated. Modular. End to end. Products / titles one offs, subscriptions and bundles Product components Planning, budgeting, calculation Author relations Contracts incl. addenda and multi title Rights offers, negotiations, sales, invoicing Rights acquisition Royalty calculation Royalty statements Royalty accounts Write offs Authors Online Planning Scheduling and project management Calculation Suppliers Purchasing Product catalog Data feeds and supply to web ONIX Promotion material automation Address management Address marketing Complimentary copies Customers Unified ordering for all content and media types Bundles of Subscriptions and One-off products Webshop integration Web delivery platform integration Invoicing Warehouse Inventory Shipping Returns Stock valuation Consignement Multi-product / formats Multi-location, multi-currency, multi-language, multi-company Order to CashProduct Planning and Management

8 Traditional Publishing IdeationEditorialProduction Sales The idea for the BOOK was born The BOOK content was created The BOOKS were sold The BOOKS were produced

9 Not so much has changed !! IdeationEditorialProduction Sales The idea is born The content is created The channels to market have increased The e-version Is also produced

Products and their content Content is being decomposed into digital strands or chunks Content is being reused Content is being viewed Content is being downloaded Content is being clicked Content is being bundled Content is being streamed Content is being repurposed 10

More reading than ever

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So what does this mean for software? 13

14 Proliferation of Products & Sales Models Production Sales one-off sets subscriptions standing orders pay-per-view bundles on-line access bundle in bundle packages add-on choose 3 out of 10 usage tracking patron driven acquisition open access (article creation) token accounts chapter sales pod Consumption Time-based

Product Agnostic 15 video online contentcd mp3 tracks games appsbooks magazines electronic chapters stationary broadcasting services dvd merchandising

16 Accommodate new sales models The need to handle: Electronic sales items Internet based delivery Flexible combinations New sales models by trial Shorter time to market Specific “reading” tools The flexibility to meet change

New Sales Models - eBook, Print & eBook, POD 17

New Sales Models - buying sections 18

New Sales Models - PDA Patron Driven Acquisition PDA is now practical largely due to the spread of the eBook - Enormous savings for libraries - Increased revenues for publishers o Walter De Gruyter by 20% o Ithaka/Jstor forecast 15% growth Library makes automatic buying decision based on usage! Aims and Scope 40% percent of books purchased in traditional ways never circulate And 40% circulate fewer than three times. By contrast, PDA allows a library to borrow or buy books only when a patron needs them. The library imports bibliographic records into its catalogue at no cost. When a patron finds a patron-driven record in the course of research, a short-term loan can allow him to borrow the book The transaction charge to the library will be a small percentage of the list price. Typically, a library will automatically buy a book on a third or fourth use. 19

And technology wise... Become more scaleable, flexible, customizable 20 Future proof technology stack Run on web and all mobile devices

21 User interaction across all devices Klopotek STREAM is a platform for user interaction across computers and portables. Focused on supporting key business processes in a smart and simple way, Klopotek STREAM provides a new user experience (UX) for Klopotek software. It is web-based and available in addition to your Klopotek rich client solution.  Supporting key business processes in a smart and simple way  Status-driven workflow engines which can easily be adapted to your specific requirements  Business process-oriented support for key tasks: simple and easy to use

 Intuitive user experience  Interaction across computers, internet, portable devices  Focused on supporting key business processes in a smart workflow  Seamless integration Visit us at B8 to arrange a demo Klopotek STREAM 22

Title Management degree view on Author and Contact data

Contract Management 24 The Contract Manager provides a web interface with workflow focused support for Contract Management Key contract data searchable anytime, anywhere Direct link to contract & statement archive. Contract documents can directly be produced in the required language. UI and processes adapted to specific needs.

The Rights Licenses and Permissions Manager provides extended capabilities for rights management. Key features and benefits:  Acquisition: mapping and integration of APIs of vendors.  Accessibility: availability of relevant portals and smartphone/tablet apps makes permissions license details, rights availability and rights management information more accessible.  Permissions specifications, metadata creation and assets management: workflow and budgeting support, payment scheduling, reuse of assets. Rights, Licenses and Permissions Manager 25

The Subscription Managers provides a Web client focusing on the activities in Customer contact Centers. Key features and benefits:  Enhanced 360º View of the Customer  Fast order entry  Real-time order calculations and adjustments  Intuitive standard subscription processes such as renewal, cancelation, modify and upgrade  Pick-and-choose product bundles for on-the-fly subscription customization Subscription Manager 26

Content is now consumed differently, and the traditional publishing business models have changed. This will only accelerate with the new generation of digital products Organisations who fail to implement new business models, processes and the infrastructure needed to support this transition will struggle to survive. For more information visit us at B8 Conclusion. 22