1. Cloud solutions for growing entrepreneurial companies EXACT SOFTWARE

2. © 2015 EXACT Your presenters today from Exact Online Dave Lechleitner Product Marketing Principal 2 Kae Kronthaler-Williams General Manager

3. © 2015 EXACT About Exact

4. © 2015 EXACT Who is Exact? Three business units focusing on key value markets and propositions: Cloud Solutions, Business Solutions, Specialized Solutions Industry-specific solutions for manufacturing, wholesale/distribution, professional services automation, accounting, and accountancy/practice management Targeting business owners and accounting firms that understand the benefits of automation 5

5. © 2015 EXACT Who is Exact? 5 Global solution provider for SMBs for over 30 years 1,600 employees 250,000 customers 110 countries $210 million annual revenue 30 years 4

6. © 2015 EXACT Cloud Division 6 Integral component of future growth > 500 employees 220,000 customers 6 countries $50 million ARR 4x growth since 2013 4

7. © 2015 EXACT Proposition Small to mid-sized entrepreneurial companies with <= 50 employees with an “up market strategy” to target companies up to 100 employees Accountancy firms and their clients Solution Market Product Innovative cloud-based solutions targeted toward specific industry verticals including manufacturing, wholesale/distribution, and professional service firms Fast growing ecosystem World-class solutions integrated with QuickBooks Online or our own native accounting True multi-tenant cloud portfolio Strong focus on mobility Excellent user experience 7

8. © 2015 EXACT Business Challenges Faced by Manufacturers— A Macro View

9. © 2015 EXACT 6 Biggest Challenges Facing Manufacturing Workforce skills gap—finding qualified workers Rising cost of doing business—shrinking margins Global competition and global supply chains Managing appropriate inventory levels Keeping up with technology Regulation and compliance 9

10. © 2015 EXACT Business Challenges Faced by Manufacturers— A Practical View

11. © 2015 EXACT Business Challenges Faced by Manufacturers Effective customer engagement and management ˃Highly competitive marketspace ˃Difficult to differentiate themselves ˃Customer management tends to be haphazard ˃Often do not have a seasoned sales staff and lack defined opportunity management process ˃Effective customer engagement and management combination of technology, sound processes, knowledge and insight 11

12. © 2015 EXACT Business Challenges Faced by Manufacturers Timely and accurate quotations ˃Supplier differentiation is disappearing especially for contract manufacturers ˃Lowest price vs. quality of product ˃Time vs. quality of quotation ˃Focusing on the right opportunities ˃Don’t often understand true cost of doing business so quote based on “what market will bear” 12

13. © 2015 EXACT Business Challenges Faced by Manufacturers Understanding cost and profitability of orders in real- time ˃Understanding the cost of doing business is not their forte (labor, overhead, materials, outside processing) ˃Cost review is often done after the fact (if at all)— too late to make adjustments ˃Do not deploy real-time data acquisition on the shop floor ˃Do not have insight into cost and profitability trends over time ˃Do not understand how order profitability contributes to overall company profitability 13

14. © 2015 EXACT Business Challenges Faced by Manufacturers Ensuring adequate inventory in the right location at the right time ˃Carrying excess inventory means an additional investment of 25% - 70% for a typical manufacturer ˃Scheduling of appropriate levels of inventory challenging (inventory lead time vs. customer changes to the schedule) ˃Often carry excess inventory to hide deficiencies in other business processes ˃Do not often analyze purchasing trends for key inventory - TITLE OF PRESENTATION14

15. © 2015 EXACT Business Challenges Faced by Manufacturers Managing shop capacity and gaining visibility to order status ˃Highly volatile environment (customer change orders constant) ˃Often at/near 70% (or less) on time performance— customers demand 95% - 100% on time performance ˃Do not have clear insight into effect of changes on shop floor—(employee calls in sick, operation taking longer than planned) ˃Supplemented by lots of external systems that are not integrated (2 to 3 hours per day updating status of orders) 15

16. © 2015 EXACT Building a World Class Manufacturing Company— Managing to Key Metrics

17. © 2015 EXACT Important Metrics for a Manufacturing Company Customer experience and responsiveness ˃On time delivery performance ˃Manufacturing cycle time ˃Time to complete changeovers Quality ˃Throughput ˃Capacity utilization ˃Overall equipment effectiveness ˃% of production attainment Inventory ˃WIP turns ˃Stock inventory turns 17

18. © 2015 EXACT Important Metrics for a Manufacturing Company Maintenance ˃% of downtime ˃Planned vs. reactive/emergency maintenance Flexibility/Innovation ˃Time to market (new product) ˃Engineering change order cycle time Cost/Profitability ˃Manufacturing cost ratio (% of revenue) ˃Revenue per employee ˃Cash-to-cash cycle time 18

19. © 2015 EXACT Helping your clients achieve world class status Understand where they are at today—identify their gaps in technology, people, process Create a roadmap for improvement—focus on the 3-5 concrete, actionable items Foster a culture of continuous business improvement Leverage technology and industry partners where appropriate 19

20. © 2015 EXACT Thank you!