1. Imagine the result Bookings and Backlog Imagine the result

2. Key Financial Metrics  Gross Revenue  Net Revenue  Net Revenue Multiplier  Financial Billability  Operating Income (Income after Corporate Overhead)  Return on Net Revenue (Income percent of net revenue) þ Bookings þ Backlog  DRO (Days Revenue Outstanding)

3. Imagine the result Why Do Bookings and Backlog Matter?  Backlog defines contracted workload by division and business unit  Helps to project hiring needs and balance workload  Allows management to measure sales versus burn rate and workload projections  Measures success of client development efforts at division, business unit and client levels

4. Imagine the result Bookings and Backlog

5. Imagine the result Bookings “The Basics” Definition:The amount of Net Revenue that will be earned on a project Basic Calculation: Total Compensation minus (Subcontractor Cost Budget + ODCs Cost Budget) In other words: Labor Revenue + Subcontractor Markups Who gets credit?Client (Primary Client) Market Sector or Market Area (assigned to Client) Business Unit (Project location) Division (Project location) When is it calculated? Calculating nightly to appear in Roll Based Reporting

6. Imagine the result Terminology Bookings MetricContract ValueNet Booking Subcontractor Compensation $15,000 cost + $1,500 markup = $16,500 $1,500 ODCs Compensation$500 cost + no markup $0 Labor Compensation$3,000 TotalContract = $20,000 Booking = $4,500 Project Success = Company Success

7. Imagine the result Backlog “The Basics” Definition:The amount of Net Revenue that is “left” to earn on a project Basic Calculation:Total Compensation minus the greater of (Subcontractor Cost Budget + ODCs Cost Budget) OR (JTD Subs and ODCs) minus JTD Net Revenue If Revenue Group: Adds all phases together Who gets credit?Client (Primary Client) Market Sector or Market Area (assigned to Client) Business Unit (Task location) Division (Task location) When is it calculated?Calculating nightly to appear in Roll Based Reporting Impact of Project Status:If entire project is made Dormant, all backlog is dropped

8. Imagine the result Terminology Backlog Project AB009999.00001 Contract ValueNet Backlog Task 00001 Location TFS30 Environment, SER3, Tampa Labor Comp $5,000 Subs $500 + 10% markup ($50) $5,050 Task 00002 Location TOSI0 Infrastructure, Strategic Services, Toledo Labor Comp $5,000 Expenses $450 no markup $5,000 Task 00003 Location TOWN0 Water, Water North, Toledo Labor Comp $5,000$5,000 TotalContract = $16,000Backlog = $15,050 Project Success = Company Success

9. Imagine the result Bookings & Backlog Relationship “Key Equation” Beginning Backlog Balance + Plus: Bookings Added Less: Net Revenue Burned = Equals: Ending Backlog Balance

10. Imagine the result Debookings “The Dark Side”  Data entry correction – we entered a project forecast through Plan without an accurate cost budget and “over booked” and then “debooked” the next month  ARCADIS subcontracts work (labor) that we originally planned to do increasing the EAC expenses and reducing the EAC DL.  Prevention – plan contingencies as subcontractors rather than labor so we don’t over-book at the start  If project JTD subs + ODCs are higher than the total sub/ODC cost budget in VISION, the actual JTD expenses are used in the calculation

11. Imagine the result Bookings/Backlog “Month 2 and beyond - “Now it gets tricky” Backlog calculation doesn’t change – all project changes will flow through to new backlog Total Compensation minus (Subcontractor Budget + ODCs Budget) minus JTD Net Revenue What impacts the backlog calculations? Project had an increase or decrease in compensation Project made dormant, backlog will now be zero Cost budget was entered or changed If project JTD subs+ ODCs is higher than the total sub/ODC cost budget in VISION, the actual JTD ODCs are used in the calculation Backlog can be negative at the task level as long as the project in total has positive backlog Bookings calculation is really the same but we now need to consider what might have changed so…. Bookings = Current Backlog minus Previous Backlog plus Current Net Revenue

12. Imagine the result Bookings/Backlog Forecast History in the Project Review Dashboard

13. Imagine the result Bookings/Backlog Increase in Compensation

14. Imagine the result Bookings/Backlog Negative Bookings (Convert work to Sub)

15. Imagine the result Bookings/Backlog Positive Bookings (Convert to Self Perform)

16. Imagine the result Bookings & Backlog Reporting  Roll Based Reporting –Bookings and Backlog Detail –Client Profile

17. Imagine the result Bookings/Backlog Roll Based Reporting

18. Imagine the result Bookings/ Backlog Client Profile

19. Imagine the result