Ingvar Kristinsson, Managing Director LS Retail team LS Retail Roadmap Ingvar Kristinsson, Managing Director LS Retail team

Background Development Plan

Landsteinar Strengur One of the principal companies providing and developing retail and hospitality solutions based on Microsoft Dynamics Working with retail since 1988 Certified world-wide by Navision in 1997 85 Employees solely working on basis of Microsoft Dynamics development Member of Microsoft® President Club Microsoft Business Solutions Global ISV of the Year 2005 Microsoft Dynamics Regional ISV Partner of the Year 2007 (EMEA) LS Retail NAV - CfMD Our Partner Network 75 certified partners Representation in 51 countries

Further more Beta tester on NAV 5.1 Technical Advisory Partner (TAP) AX 5.0 ISV Partner Advisory Council (ISV PAC) Among first 6 ISV solution to become Certified for Microsoft Dynamics (CfMD) Tested solution Service program More than 10 references Updated on latest release LS Aims to have LS Retail AX certified before end of year 2008

Product focus LS Retail NAV LS Retail AX LS POS .NET End to End rich of functionality LS Easy Retail LS Hospitality LS Retail AX Upper midsized market BO/HO only – integrated to LS POS .NET LS POS .NET POS for AX and NAV from 5.1 4 years ago we started with AX, future vision is the same as for NAV. Integrated with LS POS.NET Today me and Matthias will show you a demo on NAV but the standard of AX will be the same in the near future. LS POS.NET wil be our future POS.

LS Retail installation Total 2006 YTD 2007 To date Companies 133 104 960 Stores 3.700 2.270 15.400 Point of sale clients 10.330 3.640 35.300

LS Retail 2006 Revenue by territory

LS Retail market per vertical industry We started in Food but we have not been very present there although our solution fits extremely well for the Food sektor. Our Hospitality solution is getting more and more attend tion and it is very fast growing. In a request of Tender we score about 75 % with our food solution but 85-90% with our Hospitality solution.

Some of the companies and institutions that have chosen solutions from Landsteinar Strengur are: Adidas, NAAFI (the Navy, Army and Air Force Institutes), IKEA, Pizza Hut, Debenhams (Department store), Booths Supermarkets,  National Gallery (London), Danish Telecom, Moss Pharmacies and Levi’s. 9

Represented and localized countries America USA, Canada and Mexico Scandinavia Denmark, Norway, Sweden, Finland, Faeroe Islands, Iceland North and Central Europe UK, Austria, Belgium, France, Luxembourg, Germany, Switzerland, Netherlands Eastern Europe Hungary, Romania, Poland, Bulgaria, the Ukraine, Baltic, Russia, Slovenia, Serbia, Croatia South Europe Spain, Portugal, Italy, Turkey, Greece, Cyprus Middle East Dubai, Lebanon, Saudi Arabia, Qatar Asia Hong Kong, Singapore, Thailand, Philippines, Malaysia, Indonesia India, Pakistan, Bangladesh, Japan 10

Partner strategy Focus on Retail and Microsoft platform Not new unless it fit some gap/territory Close relationship Evaluation based on performance and activity Revenue (Pipeline update and progress) Certification LS Retail Group for International projects/customers One owners One contact point for the customer www.lsretail.com Vcs Retail in Detail for technical issues

Development Our vision is to offer a dominant END To END Retail solution for various types of retailers based on the Microsoft Dynamics product line with the LS Retail product architecture and concept as the backbone. We are stationed in Iceland and very focused on our development on our products. We are working on the stricht rules and frame of a Quality System and have been ISO certified.

LS Retail architecture NAV/AX Transaction Service Data Director Instant transaction posting Centralized transaction suspension Customer validation Staff validation Floating staff Etc.. All standard dataflow Product master POS settings Staff information Transactions Etc.. POS Data Director Smart POS, offline with online advantage through transaction services. DB on BQ and POS. In a downtime preferbaly around Christmas this will happen.... Update Service

LS Retail Advantage One platform retail operation Simple operation – low cost of ownership Supports your business Food, Fashion, DIY, Hospitality, Specialty Information at your fingertips Traceability from General Ledger to POS transactions Integrated with Microsoft SharePoint, Outlook, Word and Excel Simple integration with other Microsoft products We developed the base for Service module and Navison bought it from us 2002 and many of our customers today are using this module (electronics ..)

LS Retail Solution Overview BackOffice Item management, labeling, price control, barcoding, promotions Customer and Vendor management Concession - item, customer, vendors Comprehensive analysis, reporting and accounting InStore Management Store inventory processes Handheld support using batch or on-line Point of Sale & Services POS operations, cash management and CRM integration Replication & Process Scheduling Automation of data synchronisation between HQ, branch offices and stores Concession like for Magasin du Nord is a very fast growing demand. In Magasin we have a connection from LS Retail AX to 3rd party POS but they have a plan to change ther current POS system to LS POS.NET in the near future. This will be done step by step.

Point of Sale LS – Point of Sale Multiple Interface Layouts Touch Screen OPOS support Keyboard Support Multiple Interface Layouts Samples included User definable Any Screen size Multiple Languages On buttons By Staff Multiple Hardware Samples in Default Graphics support On Buttons On Items Multiple payments In Currency By Cards

Product focus Business Intelligence General Merchandising Inventory Management Promotions Management Replenishment CRM integration Labor Management Using Microsoft CRM to extend it, Loyalty ...Labor Management is on the list, work shifts and so on In store Tasks and .. Business Intelligence

Add-on solution Peocon Handpoint AGR StoreVision Pebblestone People counting Handpoint Handheld terminals AGR Inventory Optimiser StoreVision CCTV integration with LS POS Pebblestone Integration with Pebblestone Fashion To cover the whole area we have been fronting these companies and using there strength and expertise as our focus is and will remain on Retail.

LS Retail current releases NAV LS Retail NAV 4.2 (on Dynamics NAV 4.0) LS Retail NAV 5.0 (on Dynamics NAV 5.0) AX LS Retail AX 3.5 (on Dynamics AX 3.0) LS Retail AX 4.1 (on Dynamics AX 4.0) .NET LS POS .NET 5.2 (integrated with LS Retail AX 4.1)

LS Retail NAV 5.0 - highlights In Store Management Stock Count Requests Dashboards Store and HO Cash Management Support more advanced processes Product Management Item Import Price Points and Rounding Purchase Management Buyer Groups, Profit goals, Contracts Vendor Performance Hospitality Delivery, recipe

LS Retail AX main features Retail item Hierarchy, variants, item life cycle Item import Validation, calculation of price, price points etc. Offer management Discount offer, Multi buy, Mix & match Budgeting Sales and Purchase Replenishment Group, rules Concession

LS POS .NET A .NET POS fully integrated with LS Retail AX Creating a powerful end-to-end retail solution Adopting to the latest Microsoft platform Visual Studio 2005 Programmed in C# (.NET) SQL Express WEPOS (Windows Embedded for Point of Service)

LS POS .NET Architect Price Discounts EFT connections Tax Currency UI Components UI Process Components Application Settings Security Logging Business Entities Business Workflows Price Discounts EFT connections Tax Currency Queries Gift cards E-Top Up CCTV Etc.. Data Access Logic Service Agents Data Source Services

The use of service modules Services The default price module supplied by Landsteinar Strengur The use of service modules during a transaction IPrice System Core The default discount module supplied by Landsteinar Strengur An extended discount module implemented by a Partner IDiscount Example: The European tax rules module supplied by Landsteinar Strengur ITax A Sample EFT Module Supplied by Landsteinar Strengur A localised EFT module implemented by a parter IEFT

Recommended resources Processor 1 GHz or faster RAM 512 MB Operating system WEPOS Windows XP SP2 Windows 2000 SP4

LS Retail next releases NAV NAV 5.1 (May 2008) Service packs as needed AX LS Retail AX 4.2, 15th. Dec 07 Release on AX 5.0 when that will be ready 2008 .NET LS POS .NET 5.3, 15th Dec 07 LS POS .NET 5.5, (May 2008) Integrated with LS Retail NAV 5.1

www.LSRetail.com Thank you