Financial Overview and Next Steps René Bergkamp Vice-President of R&D, Financials, QAD QAD Explore 2012

2 The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD. Safe Harbor Statement Financial overview and next steps

3 The Effective Enterprise QAD Enterprise Financials New in QAD Enterprise Financials 2012 Financial Report Writer What is next Questions Agenda Financial overview and next steps

4 “An Effective Enterprise is one where every business process is working at peak efficiency and perfectly aligned to the company’s strategic goals. ” Effective Enterprise Financial overview and next steps

5 1990’s: Implementation of ERP/Finance systems reduces average cost of operating a finance department relative to a company’s revenue Since then limited improvements in efficiency -Increased compliance costs -Change in drive towards improving companies performance Change of focus to effectiveness -Efficiency and effectiveness can clash Effectiveness of Finance Financial overview and next steps: Effective Enterprise

6 Reducing complexities and risks involved in global roll-outs Simplifying budgeting, reporting and closing Enabling global regulatory compliance Delivering best practice business processes Enabling & promoting greater efficiencies Effectiveness of Enterprise Financials Financial overview and next steps: Effective Enterprise

7 QAD Enterprise Financials Financial overview and next steps

8 Enterprise Financials Financial overview and next steps Enterprise Financials Fixed Assets Logistics Accounting Vertex Sales and Use Tax Interface Enhanced Controls Governance, Risk & Compliance Allocations BudgetingMulti-GAAP Tax Management General Ledger Accounts Payable Accounts Receivable Multi Currency Banking/Cash Management Cost Management Financial Shared Services Management Reporting Financial Analytics Consolidations Credit Management Internationalization

9 Key capabilities -Multi GAAP/COA/Currency reporting -Shared services support -International regulatory compliance -Internal controls Examples of effective enterprise metrics affected: -Closing time -Days sales outstanding -Days payables outstanding -Operating cash flow / sales ratio -Segregation of duties violations Enterprise Financials Financial overview and next steps: Enterprise Financials

10 Financial overview and next steps: Enterprise Financials Over 120 Companies Live

11 Enterprise Financials: Live Implementations Financial overview and next steps: Enterprise Financials

12 Enterprise Financials: Planned for 2012 Financial overview and next steps: Enterprise Financials

13 Multiple options -Technical migration (1:1 conversion) -Reload master data in new database -Re-implementation -Mix-mode Session “Migrating from SE to EE” Upgrading to Enterprise Edition Financial overview and next steps: Enterprise Financials

14 What Is New In Enterprise Financials 2012? Financial overview and next steps

Financial Report Writer Customer requested enhancements -Cost center analysis limitation Efficiency Improvements Financial overview and next steps: New in QAD 2012 EF 15

Portugal -Decree 363/2010 France -Customer mass payments enhancements Mexico -Exchange rate for taxes as payments Columbia -Supplier Invoice & tax excluded USA -Vertex 4.0 Supporting the Globe Financial overview and next steps: New in QAD 2012 EF 16

Brazil -Tax substitution in business relation -PO shipper/fiscal receiving un-confirm Argentina, Brazil -Supplier withholding tax -Withholding tax support in banking entry and open item adjustment Supporting the Globe Financial overview and next steps: New in QAD 2012 EF 17

18 Financial Report Writer Financial overview and next steps

Objectives -Single solution for effective GL reporting -Real time -Multi-domain -Consolidated -Chart Translation -Currency Translation -Multi-GAAP Financial Report Writer Financial overview and next steps: Financial Report Writer 19

20 Balance Sheet Financial overview and next steps: Financial Report Writer

21 IFRS Balance Sheet Financial overview and next steps: Financial Report Writer

22 Build and run flexible reports -Flexible report hierarchies -Flexible row & column definitions with in-line calculations -Reusable analysis codes Based on harmonized data in a reporting cube -Across multiple COA, currencies, GAAP -Optimized for reporting inquiries Main Features Financial overview and next steps: Financial Report Writer

23 Financial Report Writer Financial overview and next steps: Financial Report Writer

Build and Run Flexible Reports Financial overview and next steps: Financial Report Writer 24 ReportCubeReportCube Reporting Data ReportReport Report Analysis Codes Report Analysis Codes ReportTreeReportTree ColumnGroupColumnGroup Report Master 24

25 Based on Harmonized Data in a Reporting Cube Financial overview and next steps: Financial Report Writer ReportCubeReportCube Reporting COA Report Calendar Presentation Currency Source domains Report Chart Maintenance Maintenance COA Cross-Reference Cube Definition Maintenance Maintenance

Report Tree for a Sales Report Financial overview and next steps: Financial Report Writer 26 Europe France01 …. Americas USA01 … Asia China01 Japan01 … Global Sales Sales Auto Sales Pack Sales Auto Sales Pack Sales Auto Sales Pack 26

27 Report Tree Financial overview and next steps: Financial Report Writer

28 Report Tree Excel Integration Financial overview and next steps: Financial Report Writer

29 Report Run Financial overview and next steps: Financial Report Writer

30 Report Run Financial overview and next steps: Financial Report Writer

31 Browsing the Report Cube Financial overview and next steps: Financial Report Writer

32 Drill Down to the Source Transactions Financial overview and next steps: Financial Report Writer

33 What Is Next? Financial overview and next steps

34 Handling of customer short payments Allows creation of deductions that can be separately approved/rejected and further processed Two kinds of deductions -Trade promotion related -Standard deductions Deductions Financial overview and next steps: What is next

35 Deduction Categories Financial overview and next steps: What is next

36 Processing a Deduction at Payment Financial overview and next steps: What is next

37 Deduction Review Financial overview and next steps: What is next

38 Deduction Processing Flow Financial overview and next steps: What is next Deduction Category Deduction Creation at payment processing Deductions TPM Processing Deduction Review Deductions Normal Customer Invoices Deduction write off on expense account Open Item Adjustment Deductions balanced with other open items Add/Delete/Modify Details Reject Approved Write-Off Approved for Credit Promotion Standard

39 Business Intelligence -Cubes with consolidated report writer data become available for QAD Business Intelligence Budgets -Budget comparisons in report writer Enhanced tree builder -On the fly maintenance and inquiry of analysis codes Financial Report Writer Enhancements Financial overview and next steps: What is next

40 Web Based On Demand Alternative to Vertex Tax Interface to Avatax Financial overview and next steps: What is next

41 Germany -Auditor certification IDW AuS 880 Europe -SEPA changes Japan/Thailand -Consolidated invoice Internationalization Financial overview and next steps: What is next

42 Ongoing tracking of new requirements Planning subject to change Internationalization Financial overview and next steps: What is next

The Effective Enterprise QAD Enterprise Financials New in QAD Enterprise Financials 2012 Financial Report Writer What is next Summary Financial overview and next steps 43

44 Attend these related sessions: -Training QAD Enterprise Financials at Explore (Thursday afternoon and Friday morning) -Business Intelligence: A Closer Look -Migrating from SE to EE -Business Intelligence Workshop (Thursday morning) Stop by the Solutions Expo Next Steps Financial overview and next steps

45 René Bergkamp Vice-President of R&D, Financials, QAD Questions & Answers Financial overview and next steps

46 © QAD Inc 2012