The Emerging QAD CLOUD Is it right for

The Emerging QAD CLOUD. . Is it right for You? Charlie Eggerding MWUG 03 -23 -2015

What do I like about Spring? • March Madness • Baseball • Spring MWUG 2

QAD Cloud Adoption 1/5 THE CLOUD SOFTWARE MODEL WILL ACCOUNT FOR $1 OF EVERY $5 SPENT ON SOFTWARE BY 2016 109% SPENDING ON CLOUD ERP WILL INCREASE BY (109%) FROM 2012 TO 2017 50% 23% TO 50% INCREASING WILLINGNESS TO CONSIDER CLOUD ERP 3

It’s all about the CLOUD 4

“if the rate of change on the outside exceeds the rate of change on the inside, then the end is near” Jack Welch “ When is this Cloud idiocy going to stop” Larry Ellison “ Oracle has 100 apps in the Cloud, SAP has nothing…” Larry Ellison “ If this doesn’t work we are Dead, Flat Out Dead” Hasso Plattner “the only constant is change” Marc Benihoff 5

Millions QAD Cloud Growth QAD Cloud ERP $35 M $30 M $25 M $20 M $15 M $10 M $5 M $0 M FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 6

QAD Stock price as of 3 -23 -15 7

Cloud Operations by the Numbers • Over 1, 000 Environments • 3. 5 Million transactions per minute • 99. 94 average uptime (Q 4) • 140 Global team members dedicated to Cloud Operations 8

What about YOU? 9

Keeping Pace with the business strategy 10

Compliance 11

User Expectation 12

The Internet of Things 13

Operations to Transformation Infrastructure Applications Strategy Compliance Value 14

The Emerging QAD CLOUD Collaboration Transportation Management Application Customer Self Service ERP BPM Communication Supplier Portal Platform JOHN DOE Analytics Security Runtime Packages Database Infrastructure EDI & Integration Content Monitoring Compute Storage Network Management

headline Cloud Operations Update 2015 Amsterdam Salt Lake City, UT Washington DC Paris Denver Suzhou Hong Kong Cloud ERP Data Centers z Singapore Production DC DR and Non-Prod DC Sydney May 2015

Industry Standards and Compliance • SSAE 16 Certification - Data Centers and QAD • FDA Qualified Environments • ISO 9001 - Complaint 2014 • ISO 20000 - Certified - January 2015 17

QAD Cloud Services • Industry leading SLA • Global 24 x 7 Operations • Support across entire application suite Service Management Infrastructure Management Systems Management Customization Management Network Management 18

Partners • • Partner door is OPEN Simplicity rules Software Development Kit based on need We want to Lift & Shift your environment 19

Where? 20

Paths to the QAD Cloud Net New Site New Customer QAD Cloud Setup Conversion/Upgrade On Premise QAD Setup QAD Cloud Conversion Lift & Shift On Premise QAD Setup Copy Cloud Upgrade QAD Cloud 21

Is the QAD CLOUD right for you? 22

QAD Upgrade – expected Value Type Value Source QAD Capability Strategic § ERP Harmonization to support planned business growth § Single version of truth to drive informed business decisions § Standardization and Simplicity of solution to allow for increased control and flexibility § Multi-Domain Architecture § Reporting and Analytics § Automotive focused Functionality § Full support for MMOG/LE Guidelines Hard Business Benefits § Material Spending reduction: ($4. 2 – 10. 1 M /y) § Freight reduction: (3 - 10% /y) § Premium Freight reduction: 5% ($468, 750 /y) § Reduce financial resources due to shared services: 10 ($323, 000 /y) § Improve. Net Productivity: ($499, 000 /y) § Reduce Buyers due to increased productivity: 12 ($389, 000 /y) § Supplier Volume Projections § Sales Forecast Supplier Proj. § EE Financials § Supply Chain Portal § DRP, EDI (Orders / ASNs…) § Reporting and Workbenches §. Netui Soft Business Benefits § Key Users to concentrate on Value Added Activities (ex: contract negotiations) § Increased Productivity and Transaction Efficiency § Improved System Usability § Management by exceptions § ERP integrated Barcode Solution § Browses and Collections § Automotive Process Maps 23

Analysis Results – Investments vs Benefits • Return On Investment of 270% over 5 Years • Cost of Delay = $732 K per Month 24

QAD CLOUD impact on P&L • Capital is depreciated over 5 years* 25

What’s on the Horizon? 26