1. Shelf Connected Supply Chain Danny Halim

2. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL Agenda Shelf Connected Supply Chain Target Market Solution Competitive Reviews 2

3. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL Why Shelf-Connected Supply Chain? The Business Needs... 3 I wanted to be able to tell them (retailers) that if you carry X inventory and take Y actions, we can have a Z desired level of profitability. There was no immediate insight into store level issues, overstocks, stock-outs, fulfillment performance. Retailers are getting better with their supply chain. In the DSD world, if retailers are taking back ownership of managing the shelf and placing the order, then companies like Coca-Cola will just become a distributor / delivery man

4. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL “The traditional approach to forecasting, primarily based on an analysis of past sales, is no longer adequate. Even products with a linear, non seasonal, and long-running history, such as milk and tomato soup, are showing unprecedented spikes of demand variability.” In our view, a software provider such as JDA, which is able to integrate manufacturers and retailer spaces, can act as a "dealer“ between these two worlds. Source: IDC Manufacturing Insights, T h e I n t e g r a t i o n o f O p p o s i t e s : R e a l - T i m e D e m a n d V i s i b i l i t y F r o m J D A C o n n e c t 2 0 1 0

5. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL Strategic Positioning The Shelf Connected Supply Chain is a significant differentiator for JDA Shelf Connected Supply Chain reinforces and supports our positioning as “The Supply Chain Company” The Shelf Connected Supply Chain offering will open doors to customers who have traditionally not leveraged JDA for Supply Chain Planning

6. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL Retail Trends Impacting Brand Owners Traditional PracticesEmerging PracticesImpact to Brand Owners Operating within a traditional retail merchandising & selling model Operating like a vertically integrated company (retailer, distributor, and private label manufacturer) “Co-opetition” environment Pressure on VMI and DSD Shared benefits and cost savings – more points of negotiation Regional or cluster level category management Local / store-level category management from assortment to planogram execution New “price of entry” for category captainship Sales driven collaboration Collaborative planning includes order, inventory, promotion and category management Shared benefits / win-win 6

7. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL Manufacturers’ Organizational & Data Challenges Supply chain planners still rely on shipment/order history as primary input Category managers are not utilizing all the information available POS is shared but is insufficient in isolation

8. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL SupplierFactoryManufacturer DCRetail DC Shipments Production Orders Procurement Orders Assortments POS Sales DC Withdrawals Customer Orders Supply Chain & Logistics Management Account Management Store S&OP Production Planning & Scheduling Raw Material Planning Demand Planning Replenishment Planning Assortment Optimization VMI / Store Forecasting & Replenishment Shelf Analytics Promotion Management Only JDA can provide end-to-end, shelf connected supply chain Space Management Network, Sourcing and Inventory Optimization Order Promising, Inventory Deployment & Logistics Collaborative Planning

9. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL Shelf Connected Supply Chain Some work in progress... 9

10. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL 10 Develop Category Market Specific Clusters Develop Assortments & Planogram Templates Generate Store Specific Planograms POS Data Review Category Plans Review Category Plans Store Forecasting Store Forecasting Store Replenishment & Order Planning DC Demand Forecasting DC Demand Forecasting DC Replenishment & Order Planning DC Direct Shipments DC Orders to Vendors DC Store Shelf DC Shipments to Retailer Ship Store Orders Re-Stock Shelves Reset Shelves Shelf Management Publish Assortments & Planograms Store Replenishment Store Orders Receive Store Orders Warehouse Replenishment An Example of a Shelf Connected Supply Chain Processes Planning Execution Planning Data Product Attributes Store Demographics DC Replenishment Model

11. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL SupplierFactoryManufacturer DCRetail DC Shipments Production Orders Procurement Orders Assortments POS Sales DC Withdrawals Customer Orders Supply Chain & Logistics Management Account Management Store S&OP Production Planning & Scheduling Raw Material Planning Demand Planning Replenishment Planning Assortment Optimization VMI / Store Forecasting & Replenishment Shelf Analytics Promotion Management It’s a Journey … JDA Can Help You Start! Space Management Network, Sourcing and Inventory Optimization Order Promising, Inventory Deployment & Logistics Collaborative Planning

12. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL SupplierFactoryManufacturer DCRetail DC Shipments Production Orders Procurement Orders Assortments POS Sales DC Withdrawals Customer Orders Supply Chain & Logistics Management Account Management Store S&OP Production Planning & Scheduling Raw Material Planning Demand Planning Replenishment Planning Assortment Optimization VMI / Store Forecasting & Replenishment Shelf Analytics Promotion Management It’s a Journey … JDA Can Help You Start! Space Management Network, Sourcing and Inventory Optimization Order Promising, Inventory Deployment & Logistics Collaborative Planning

13. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL Improved Top Line Performance by Leveraging Shoppers’ Insights Business Challenges Need to improve the efficiency of managing the growing number of store-specific planograms Deliver market-specific category management plans for its retail partners and generate Web- based, on-demand reports to the field Quantifiable Benefits 2 percent increase in unit sales 2 percent positive impact on dollar sales Quantifiable Benefits 2 percent increase in unit sales 2 percent positive impact on dollar sales “JDA solutions help CCE to deliver market- specific category management plans for its retail partners … streamline the execution of top-level category plans, achieve store-specific assortment management, maximize profit and extend customer loyalty” - Luisa Eichman, director of space planning services, Coca-Cola Enterprises, Inc. “JDA solutions help CCE to deliver market- specific category management plans for its retail partners … streamline the execution of top-level category plans, achieve store-specific assortment management, maximize profit and extend customer loyalty” - Luisa Eichman, director of space planning services, Coca-Cola Enterprises, Inc.

14. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL Increased Sales Volume Right at the Shelf Consumer-Centric Category Management  Must respond to the faster changing consumer buying behavior at the store-level  Increased expectation from retailers to provide store-level category plan to reduce out of stocks and improve sales  Currently develop and refresh 15,000+ store-specific assortments and shelf-plans for major accounts A $12 Billion Snack Food Business of PepsiCo 64 Percent Market Share of US Salty Snacks Macro-Level Category Plan Store-Level Category Plan Realized Benefits  Increased Sales Volume by 2-4 Percents  Maximized Shelf Productivity  Multiple Shelf Refreshes throughout the Year  Trusted Category Leader by Major Retailers

15. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL SupplierFactoryManufacturer DCRetail DC Shipments Production Orders Procurement Orders Assortments POS Sales DC Withdrawals Customer Orders Supply Chain & Logistics Management Account Management Store S&OP Production Planning & Scheduling Raw Material Planning Demand Planning Replenishment Planning Assortment Optimization VMI / Store Forecasting & Replenishment Shelf Analytics Promotion Management It’s a Journey … JDA Can Help You Start! Space Management Network, Sourcing and Inventory Optimization Order Promising, Inventory Deployment & Logistics Collaborative Planning

16. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL Challenges Half of sales occur between April and June Dramatic regional climate shifts Wide portfolio of products Inventory to protect uncertainty too high Poor forecast accuracy High cost public storage for overflow inventory Store-level Forecasting & Replenishment Dramatic Value Delivery Increase in free Cash Flow of $158mm from operations Reduced inventory by $99MM in first year Increased service level by more than 7% “Wal-Mart Supplier of The Year” & “Home Depot Partner of The Year”

17. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL Integrated Planning and Execution from Stores to Overseas Factories Forecast and track sales performance at store-level POS data Frequent product line reviews for each retail market Vendor-managed inventory with key retailers POS and shipment forecasts in one single demand management Integrated manufacturing and distribution planning from overseas to local operations Benefits Realized Improved Forecast Accuracy by more than 10% Reduced Component and WIP Inventory by more than 15% Reduced Planning Cycle Time from Days to Hours Network-Level Inventory Balancing

18. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL Agenda Shelf Connected Supply Chain Target Market Solution Competitive Reviews 18

19. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL Targeting Dimensions Target Industries Customer SizeProcesses Improved Solution Pre-Requisites Managed Services Capable CPG Focused (Int. Retailers) Food Beverage Consumer Electronics Video & Entertainment Consumer Durables Personal & Household Goods Apparel & Accessories Large -Thought Leading + 2 Billion End to End Shelf Analytics Category Mgmt Demand Planning Promo Planning Supply Planning Customer Replenishment S&OP Trans/Logistics JDA Enterprise Architecture Built on JDA Enterprise Architecture Foundation: JDA Demand & JDA Fulfillment will store & produce analytics Yes Will also be deployed behind firewall JDA can host proposal exchange

20. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL Agenda Shelf Connected Supply Chain Target Market Solution Competitive Reviews 20

21. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL SupplierFactoryManufacturer DCRetail DC Shipments Production Orders Procurement Orders Assortments POS Sales DC Withdrawals Customer Orders Supply Chain & Logistics Management Account Management Store S&OP Production Planning & Scheduling Raw Material Planning Demand Planning Replenishment Planning Assortment Optimization VMI / Store Forecasting & Replenishment Shelf Analytics Promotion Management Only JDA can provide end-to-end, shelf connected supply chain Space Management Network, Sourcing and Inventory Optimization Order Promising, Inventory Deployment & Logistics Collaborative Planning

22. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL Customer Implementation Roadmap LEVEL 1 Retail Data Sharing LEVEL 2 DC VMI/CMI LEVEL 3 Shelf-Driven Order Plans LEVEL 4 Cross Enterprise Strategies & Business Plans Traditional Emerging Agility/ Flexibility/ Value Joint Ordering Joint Supply Chain Planning Joint Strategies & Ownership Visibility Current Models Emerging Models

23. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL Agenda Shelf Connected Supply Chain Target Market Solution Competitive Reviews 23

24. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL Competitive Comparison

25. Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL Why JDA for Shelf Connected Supply Chain Provide a comprehensive and integrated set of solutions to connect your supply chain to the shelf Provide the scalability to plan and optimize to the shelf level Enable your Shelf Connected Supply Chain without re-implementing your existing ERP or SCM platform Offer the proven solutions and best practices used by the world’s leading manufacturers and retailers Help you develop and implement a roadmap to benefit from a Shelf Connected Supply Chain 25 Only JDA can …

26. Shelf Connected Supply Chain Danny Halim