AST&L and APICS Merger May 2015

2 © APICS Confidential and Proprietary We have some … EXCITING NEWS to share with you…

3 © APICS Confidential and Proprietary American Society of Transportation and Logistics to Merge with APICS Combination Extends Expertise of Global Leader in Supply Chain Research, Education and Certification Programs

4 © APICS Confidential and Proprietary Meet AST&L AST&L is professional organization for transportation and logistics professionals.  Founded in 1946  800 members  300 student members  Research journal  Designations – Certified in Transportation and Logistics (CTL) began in 1948 – Global Logistics Associate (GLA) – Professional Designation in Logistics and Supply Chain Management (PLS). APICS has managed the back office operations of AST&L since 2013.

5 © APICS Confidential and Proprietary Why are we Better Together? The merger unites two industry leaders with complementary offerings to expand, extend and deepen the APICS end-to-end supply chain and logistics body of knowledge that fuels global supply chain research, education and certification programs. APICS and AST&L realize that all aspects of supply chain are increasingly integrated. Education, training and credential programs that offer an end-to-end supply chain perspective are critical to help professionals advance and organizations thrive. Together we have more capabilities to address two of the most important topics in the global economy today ─ developing supply chain talent and elevating supply chain performance.

6 © APICS Confidential and Proprietary Strategic Rationale of the Combination 1. Creates the most complete supply chain body of knowledge 2. Ensures investment, improvement and continued relevancy of transportation and logistics content 3. Strengthens APICS competitive position and platform for growth This combination is poised to benefit members, customers, partners, and the supply chain community in several ways. Specifically, the merger:

7 © APICS Confidential and Proprietary Additional Considerations  As the recognized standard in operations and supply chain industry certifications, APICS is well positioned to offer a transportation and logistics credential.  AST&L and APICS certification programs have always been closely aligned. APICS designees are able to waive up to two Certified in Transportation and Logistics (CTL) exam modules.  APICS has managed the “back office” operations of AST&L since 2013.

8 © APICS Confidential and Proprietary Timeline of Activities Timeline  May 2: APICS Board approval  June 1: AST&L member voting begins  June 15: SCC member voting ends  Mid-July: Legal filings will be completed  December Integration complete Q: What’s Next? A: The merger needs to be ratified by the AST&L members. The voting window opens on June 1 and closes on June 15. Following an affirmative AST&L member vote, legal documents will be filed. A unification committee made recommendations to the APICS board and APICS staff will begin to work on these recommendations.

Q & A

10 © APICS Confidential and Proprietary Question: Answer: This transaction can be described as a merger or combination that allows our organizations to come together. APICS intends to integrate AST&L activities into existing operations. Is this a merger or an acquisition?

11 © APICS Confidential and Proprietary Question: Answer: We’ve done significant financial and legal due diligence. We are very familiar with AST&L’s operations because we have managed most aspects of their operations including finance, customer service and marketing for over a year. Have the risks been carefully considered?

12 © APICS Confidential and Proprietary Question: Answer: We have a strong commitment from the Boards of both organizations, we have a dedicated unification committee with representatives from both APICS and AST&L and the APICS executive team has integration experience. We have an integration strategy and the necessary resources to ensure success. What steps are being taken to ensure the success of the merger?

13 © APICS Confidential and Proprietary Question: Answer: Abe Eshkenazi will remain the CEO of APICS. Laurie Denham, president of AST&L, will join APICS as a senior director. Will there be any leadership changes?

14 © APICS Confidential and Proprietary Question: Answer: The point of this merger isn’t to create cost-savings—nonprofit mergers are often different from mergers of publicly traded companies in this respect. We anticipate some natural efficiencies as activities are combined. How will “operational efficiencies” be captured?

15 © APICS Confidential and Proprietary Question: Answer: No. The AST&L products will go to market under the APICS brand. The AST&L has a rich history and their legacy will become part of the APICS story. Will there be a new division or subsidiary, brand or logo?

16 © APICS Confidential and Proprietary Question: Answer: There will be no impact on APICS members except the benefit of having an expanded member network. We anticipate that AST&L members in good standing will receive a complimentary one-year APICS e-membership when the merger closes. The membership team is working out the details. How will members be impacted?

17 © APICS Confidential and Proprietary Question: Answer: AST&L and APICS share approximately 300 student members through our existing joint student membership program. Their benefits will not change and we hope to streamline the program and make it easier for students to navigate. The student membership team will be working out the details as part of the integration process. How will student members be impacted?

18 © APICS Confidential and Proprietary Question: Answer: We anticipate minimal impact to APICS North American chapters. They may gain some new members, which could mean more opportunities to sell and deliver APICS products and services. AST&L has a handful of chapters in North America. We will work out the details of how they will merge into the existing chapter network. Volunteers are very important to both organizations! We anticipate that AST&L volunteers will choose to serve on APICS chapter leadership teams and APICS committees. How will chapters and volunteers be impacted?

19 © APICS Confidential and Proprietary Question: Answer: We anticipate minimal impact to our international channel partners. AST&L and APICS share a few partners, and our products have coexisted for a long time. We don’t foresee anything changing in the near future that would impact our instructors. AST&L’s designations are now mostly earned via university or self-study programs. How will APICS international channel partners, AST&L partners and instructors be impacted?

20 © APICS Confidential and Proprietary Question: Answer: Designees will continue to hold their certifications. Candidates are encouraged to continue their studies. Will designees be impacted?

21 © APICS Confidential and Proprietary Question: Answer: In the short term there will be no changes to the certification programs. We will be reviewing the content and programs as part of the integration. We believe that the merger will provide a platform upon which to build our capabilities in transportation and logistics. We’re also optimistic that this merger will create some exciting opportunities. Will AST&L’s certification programs be maintained?

Thank you!