EXACT SOFTWARE Cloud solutions for growing entrepreneurial companies

EXACT SOFTWARE Cloud solutions for growing entrepreneurial companies

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

About Exact © 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 © 2015 EXACT

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

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

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 • 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 Quick. Books Online or our own native accounting • True multi-tenant cloud portfolio • Strong focus on mobility • Excellent user experience Market Solution Product 7 © 2015 EXACT

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

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

Business Challenges Faced by Manufacturers • Understanding cost and profitability of orders in realtime ˃ 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 © 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 14 © 2015 EXACT - TITLE OF PRESENTATION

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 © 2015 EXACT

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

Thank you! © 2015 EXACT