1. From Planning to Compliance René Bergkamp – Director, Research and Development, QAD QAD Enterprise Financials

2. 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 QAD Enterprise Financials – From Planning to Compliance

3. 3 CFO challenges -IFRS -XBRL -Global Roll-out while meeting local requirements QAD Enterprise Financials Agenda QAD Enterprise Financials – From Planning to Compliance

4. 4 CFO Challenges QAD Enterprise Financials – From Planning to Compliance

5. 5 Duke's Fuqua School of Business / CFO Magazine Business Outlook March 2011 (472 US Firms) -34% of CFOs say that convergence to IFRS accounting is one of their biggest accounting concerns -83% of firms have not started to convert to IFRS or are far from ready to convert IFRS U.S. QAD Enterprise Financials – CFO Challenges

6. 6 2011 important year -Completion IFRS/US GAAP convergence program -SEC plan to make a decision whether U.S. companies are required to use IFRS rather than U.S. GAAP -Canada and Mexico requiring use of IFRS Earliest US implementation 2015/2016 IFRS U.S. QAD Enterprise Financials – CFO Challenges

7. 7 Both Standard and Enterprise Edition fully support implementation of IFRS Enterprise Edition is designed for Multi-GAAP and embeds IFRS compliance in the core accounting processes -Accounting layers, allocation module, …. Start preparation early -www.qad.com/IFRSwww.qad.com/IFRS -QAD IFRS Q-Scan ! IFRS U.S. QAD Enterprise Financials – CFO Challenges

8. 8 XBRL: What is it? -eXtensible Business Reporting Language -Language for electronic communication of business and financial data -Common language: XBRL provides identifying electronic readable tags for each individual item of data Reporting in XBRL format QAD Enterprise Financials – CFO Challenges

9. 9 Tag -Machine readable label that gives a standard definition for topic in a document. Taxonomy -A dictionary of tags for Specific accounting standards(US GAAP, IFRS) Industry segments Company specific tags Instance Document -Collection of tags that is the building block to viewing and analyzing data XBRL – Key terms to know QAD Enterprise Financials – CFO Challenges 1000

10. 10 XBRL - Sample QAD Enterprise Financials – CFO Challenges Source: http://xbrl.squarespace.com

11. 11 Regulatory reasons -SEC requires public companies to use XBRL (US) -Mandatory for filing company accounts (UK) -Format within its e-Tax filing system (Japan) Business reasons -Facilitates paper-less financial reporting -Conforms to industry-accepted methods -Cuts time required for accounting tasks -Easily compare company information XBRL – Why? QAD Enterprise Financials – CFO Challenges

12. 12 XBRL – Why? QAD Enterprise Financials – CFO Challenges Business Operations Internal Financial Reporting External Financial Reporting Investment Lending Regulation Economic Policymaking Processes XBRL Participants Companies Financial Publishers & Data Aggregators InvestorsCentral Banks Regulators Trading Partners Management Accountants Auditors Software Vendors

13. 13 SEC requires public companies to submit financial statements in XBRL -Large filers, all remaining public companies for their first quarter ending after June 15, 2011 Phase 1 detailed tagging of financials, block tagging of notes and schedules June 30, 2012 detailed tagging of notes and schedules Options -Outsourcing to an EDGAR filing agency -Perform tagging process in-house using XBRL tagging tool -Embedding XBRL tags in consolidation tool -Embedding XBRL tags in financial reporting process in ERP software XBRL U.S. QAD Enterprise Financials – CFO Challenges

14. 14 XBRL Enterprise Financials QAD Enterprise Financials – CFO Challenges

15. 15 Discuss practical implementation of XBRL Learn from other companies Help define QAD’s roadmap for XBRL Join by contacting QAD: xbrl@qad.com XBRL Customer Work Group QAD Enterprise Financials – CFO Challenges

16. 16 How to centralize and still meet local requirements? How to keep up to date with new legislation and new business practices across the world? How to run a shared services center supporting multiple countries? Global Roll-out, Local Requirements QAD Enterprise Financials – CFO Challenges

17. 17 QAD Internationalization offers generic solutions for country specific requirements -Enterprise Edition solution replacing prior localizations Advantages -Single code base to support the world -Supports shared services -Global benefit from specific capabilities -Keep up to date with downloadable content Global Roll-out, Local requirements QAD Enterprise Financials – CFO Challenges

18. 18 Cost method for inventory valuation that calculates periodic item unit costs based on inventory and shop floor transactions. Supports Weighted Average, FIFO and LIFO Required for -Legal requirements (IFRS, Brazil, Turkey, Italy) -Business practices in certain corporations Periodic Costing Recently Released QAD Internationalization Functionality

19. 19 Some countries require inventory movements to be accompanied with a legally required shipping document Legal Documents Recently Released QAD Internationalization Functionality Brazil : Nota Fiscal Argentina: Remito Chile: Guia de Despacho Turkey: Irsaliye Poland: Dokumenty magazynowe Thailand: “Stock Card” 19 ArgentinaBrazilChile

20. 20 Suspended Tax on Customers Invoices (Mexico, France, Thailand) Delayed Tax on Supplier Invoices (Mexico, France) Withholding Tax on Accounts Payable (US, Columbia, Venezuela, Italy, Thailand) Tax calculation extended to non-sales inventory transactions (Brazil) Golden Tax On Customer Invoices (China) Gross Income Accounting (Brazil) Taxation Recently Released QAD Internationalization Functionality

21. 21 QAD Enterprise Financials

22. New Financial solution introduced with QAD Enterprise Edition -Multi-Layer, Multi-GAAP, Multi-Currency -Additional accounting dimensions -Allocation module -Great for financial shared services -From single site to very large global manufacturing company -State of the art technology -Extensive support for Excel Refresher QAD Enterprise Financials – Refresher 22

23. 23 QAD Enterprise Financials – Refresher Continued Roll-Out

24. 24 Backwards Compatibility Customer requested enhancements Internationalization Group Reporting Automation of Consolidation Planned Developments QAD Enterprise Financials – Planned Developments

25. 25 Ability to implement newer versions of Enterprise Financials without having to upgrade the complete QAD application suite -For example implement QAD 2011.1 Enterprise Financials while running QAD 2009.1 Enterprise Edition Available for customers QAD 2009.1 EE and upwards Backwards Compatibility QAD Enterprise Financials – Planned Developments

26. 26 Advantages -Allows companies to benefit from new Enterprise Financials capabilities without doing a full upgrade -Delivery mechanism for Internationalization updates that require new business logic -Benefit from experiences and support fixes of other implementations -Remain current and on a supported version Starting roll-out middle of this year Backwards Compatibility QAD Enterprise Financials – Planned Developments

27. 27 Selection of enhancement requests Example of enhancements added in QAD 2011 -Add description field to Open Item Adjustment -Usability enhancements Customer/Supplier Payment Mass Change -Creation of end-users for existing addresses or inactive customers in Invoice Post/Print -Implement validation for duplicates earlier in Supplier Invoice Create activity -In Supplier Invoice Create add Supplier Name and PO cost to the lookup on PO Number -Print aging report by sales person or payment group Customer Requested Enhancements QAD Enterprise Financials – Planned Developments

28. 28 Invoice Certification (Portugal) -Decree 363/2010: Software certification for invoice program -QAD is certifying QAD Enterprise Financials 2011.1 Electronic Invoice (Brazil) Invoice Print converted to Report Framework Advanced Banking System (Brazil) Delayed Taxes Exchange Rate (Mexico) -Government issued exchange rates Internationalization QAD Enterprise Financials – Planned Developments

29. 29 Domain and Group level financial statements XBRL support Source for BI Financial data Group Reporting Objectives QAD Enterprise Financials – Planned Developments

30. Report Cube Common Report Chart -GL -Sub-Account -Cost Center -Project -SAF 30 Group Reporting Overview QAD Enterprise Financials – Planned Developments Cube Generate Source Domains Account Sub-Account Cost Center Project SAF Intercompany Base Currency GL Calendar COA Cross Reference Chart translation Report Chart Entities GL Sub-Account Cost Center Project Presentation Currency Report Calendar Report Cube Definition Currency Calendar Entities

31. Report Chart Maintenance: Cross Reference QAD Enterprise Financials – Planned Developments 31

32. Report Cube Definition QAD Enterprise Financials – Planned Developments 32

33. Report Hierarchy 33 Group Reporting - Financial Report Writer QAD Enterprise Financials – Planned Developments Report Cube Common Report Chart -GL -Sub-Account -Cost Center -Project -SAF Presentation Currency Report Calendar Rows Columns Tree Report Analysis Codes Europe Sales Automotive Americas Asia Sales Packaging Report Analysis codes are the building blocks of the Report Hierarchy Tree

34. 34 Drill down to the source entity QAD Enterprise Financials – Planned Developments

35. 35 Tree structure -Represent the hierarchy of the report -Nodes build with Report Analysis Codes -Tree structures are reusable in multiple layouts Build recursively from smaller trees Report Tree QAD Enterprise Financials – Planned Developments

36. 36

37. 37 Ability to process multiple consolidation levels in a single run Automatic eliminations Multi-database consolidations Consolidation dashboard Automation of Consolidation QAD Enterprise Financials – Planned developments

38. 38 CFO challenges -IFRS -XBRL -Global Roll-out while meeting local requirements QAD Enterprise Financials -Backwards Compatibility -Customer requested enhancements -Internationalization -Group Reporting -Automation of Consolidation Summary QAD Enterprise Financials – From Planning to Compliance

39. 39 Metrics Affected QAD Enterprise Financials – From Planning to Compliance ProcessBenefitValue Period/Year end reporting Faster closure and reporting to market By automating translations to other COA/GAAP fewer errors and more reliable results Improved compliance to corporate governance standards such as Sarbanes- Oxley Improved compliance at lower costs Meeting local legal and business requirements Single solution for global compliance Keep up to date by downloading Internationalization updates Improved compliance at lower costs

40. 40 Attend Architecting and Managing a Global Enterprise Solution -Thursday at 11:00 am -Speakers: Trevor Steel, Solutions Consultant, QAD Cliff Markell, Director of IT, Watts Water Technologies Stop by the EXPO and learn what Enterprise Financials can do for your organization Next Steps QAD Enterprise Financials – From Planning to Compliance

41. 41 René Bergkamp: rbe@qad.comrbe@qad.com Questions & Answers QAD Enterprise Financials – From Planning to Compliance

42. www.qad.com © QAD Inc 42