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JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
JDA Software SCM Market 2012
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JDA Software SCM Market 2012

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  • 1. JDA Software Group IncJDA Software Group, Inc.Investor and Financial Analyst MeetingSeptember 18, 2012
  • 2. Forward-Looking StatementsDisclaimerDisclaimerThis presentation contains forward-looking statements" as defined in the PrivateS iti Liti ti R f A t f 1995 Th d “ ti i t ” “b li ” “ ti t ”Securities Litigation Reform Act of 1995. The words “anticipate,” “believe,” “estimate,”“expect,” “intend,” “will,” “should” and similar expressions, as they relate to us, areintended to identify forward-looking statements. These statements reflect management’scurrent beliefs, assumptions and expectations and are subject to a number of factors thatt l lt t diff t i ll Th f t i l d b t t li it d tmay cause actual results to differ materially. These factors include but are not limited to:the unprecedented volatility in the global economy; the risk that unexpected costs will beincurred; the outcome of litigation, and regulatory proceedings to which we may be aparty; actions of competitors; changes and developments affecting our industry; quarterlyli l i ti i fi i l lt d l t f d t d ior cyclical variations in financial results; development of new products and services;interest rates and cost of borrowing; our ability to protect our intellectual property rights;our ability to maintain and improve cost efficiency of operations, including savings fromrestructuring actions; changes in foreign currency exchange rates; changes in economicditi liti l diti t d t ti li i i t d tconditions, political conditions, trade protection measures, licensing requirements and taxmatters in the foreign countries in which we do business; reliance on third parties forproducts and services; and other factors that are set forth in the “Risk Factors” sectionand other sections of our 2011 Annual Report on Form 10-K and our subsequentQ t l R t F 10 Q fil d ith th S iti d E h C i iCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALQuarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.JDA does not assume any obligation to update any forward-looking statements as aresult of new information or future events or developments, except as required by law.
  • 3. Agenda8:30 – 9:00 a.m. Welcome, Corporate Strategy for GrowthHamish Brewer, President and Chief Executive Officerg9:00 – 10:00 a.m. The Industry Dynamics and OpportunitiesDavid Johnston, Senior Vice President, Supply ChainScott Welty, Vice President, Retail Industry Strategy10 00 10 30 a m Gro th Initiati es and Ho We Go to Market10:00 – 10:30 a.m. Growth Initiatives and How We Go to MarketTom Dziersk, Executive Vice President, Sales and Marketing10:30 – 10:50 a.m. Question and Answer Session10:50 – 11:00 a m Break10:50 11:00 a.m. Break11:00 – 11:30 a.m. Integrated Services StrategyDavid Gai, Executive Vice President, Services11:30 a.m. –12:00 p.m. JDA Cloud Strategy OverviewJoseph King, Senior Vice President, Cloud Services12:00 – 12:30 p.m. JDA Financial OverviewPeter Hathaway, Executive Vice President and Chief Financial Officer12 30 1 00 Q ti d A S iCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL12:30 – 1:00 p.m. Question and Answer Session1:00 – 2:00 p.m. Lunch
  • 4. Opportunities and Plans for GrowthJDA SoftwareHamish BrewerPresident and Chief Executive OfficerCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 5. Supply Chain isStrategically CriticalStrategically CriticalEnergy Costs RisingCottonCotton• Consumer supply chainchannels are being disrupted• Supply chains continue tobecome more global andby technology• Commodity price volatilitycomplex• Accelerating pace of productobsolescence and productCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALcustomization
  • 6. Supply Chain is Significanty g$494 billionRetail$609 billion$609 billionManufacturingU.S. supply chaininventories were$470 billionWholesale$1.5 trillionin October 2011Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 7. Supply Chain ProficiencyTranslates Into Real ResultsTranslates Into Real ResultsDeliver 20% more hold a third. . . lower supply chainDeliver 20% moreperfect orders . . .90%. . . hold a thirdless inventorycosts equal to 5%of revenue68%54days72daysdays21%26%Leaders Laggards Leaders Laggards Leaders LaggardsCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALSource: Gartner
  • 8. JDA Customers – Real Results• 10% improvement inforecast accuracy• 60% reduction in forecastdevelopment cycle time• 30% reduction in freightcosts• 37% availabilityimprovement• $116M reduction in inventory• 2% reduction in waste• Turns increased by 5%development cycle time• 80% reduction in monthlyproduction cyclesimprovement• 33% reduction in order todelivery time• 98%+ service levels• 23% increase in customer• 30% increase in return on• 40% reduction in inventory %satisfaction• 94% improvement in in-stock levels• 96 basis point margin%investment% y• 80% reduction in out-of-stocks• 65% reduction in forecasterrorCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL96 basis point marginincreaseerror
  • 9. How Do We Achieve TheseResults?• Aligning demand with supplyResults?• Executive decision making to plan• Optimizing product assortmentsand product merchandising• Helping manufacturers, distributorsand allocating resources andcapacity• Optimizing sourcing, supply networksd t t tip gand retailers to align their inventoryand order plans• Optimizing pricingand transportation• Optimizing the allocation ofmaterials, capacity and resourcesto service demand most efficientlyCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 10. Market Growth DriversCommentaryCatalysts for Growth Replacement offirst-generationsystems• First-generation systems nearing end-of-life• Pre-Y2K supply chain management investments becomingoutdated1 Upgrade of homegrownimplementations50% of existing supply chain systems are discontinuedand/or limited in function• Excel-based manual processes• Internally developed2 Shift toward “best of suite”strategyInternally developed• Out-of-business vendors• Early 2000s strategy of broad ERP deployments now seenas flawed – Business leaders now driving decisions over IT3gy g• Companies seek a short list of strategic vendors• JDA is the clear leader in this context Shift toward Cloud solutions • Increasing focus on ease of deployment, upgrades and4Copyright 2012 JDA Software Group, Inc. - CONFIDENTIALSource: Benchmark initiating coverage report Shift toward Cloud solutions Increasing focus on ease of deployment, upgrades andmaximizing return on IT investments
  • 11. Ability to Win vs Horizontal and Niche PlayersCompetitive LandscapeJDA AdvantagesAbility to Win vs. Horizontal and Niche Players• The broadest, deepest SCM offering• Proven ROI• Premium offering that solves complex problemsg p p• Supply chain expertise across a wide range of industries• Delivery model alternatives/Horizontal Software Vendor Challenges Niche Player Challenges Enterprise offering ERP-focused Generic functionality Cost of ownership Partial solution Lack suite value Lack install base/////Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL Cost of ownership /
  • 12. JDA is Well Positioned in the MarketCompetitive LandscapeJDA is Well-Positioned in the MarketPositioning2011MarketShShare////Copyright 2012 JDA Software Group, Inc. - CONFIDENTIALSource: Gartner. Represents software and license revenue only. Includes acquisition of i2. Acquired companiesRevenue Growth (2009-2011 CAGR)
  • 13. JDA is a Market LeaderEnabling winners19 f th G t S l Ch i T 25 JDA S l ti 1• 19 of the Gartner Supply Chain Top 25 use JDA Solutions1• 82 of the top 100 consumer goods manufacturers use JDA2• 73 of the top 100 retailers use JDA3Commitment to success• More than 2,690 maintenance-paying customers have chosen JDA to solve their uniquesupply chain challenges97% c stomer satisfaction• 97% customer satisfactionJDA expertise• 3,100+ employees globally• Largest community of industry experts• 9.75 years average tenure• 261 U.S. patents, 87 pendingCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL1 According to JDA’s independent analysis of Gartner’s 2012 list2 Top 100: The Consumer Goods Registry, 20113 Top 100 Retailers, STORES, 2011
  • 14. Large, Loyal and DiverseCustomer BaseJDA serves more than 2,690 customers in 83 countriesMajority of Fortune 500 companies in the industries we serve rely on JDACustomer BaseManufacturersManufacturers RetailersRetailersWholesaler-distributorsWholesaler-distributorsServicesServicesTransportation& LogisticsTransportation& Logisticsj y p yCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL* Percentage of total revenue43%* 6%*42%* 1%*6%*
  • 15. Significant Growth Opportunities WithinLarge Existing Customer BaseLarge Existing Customer BaseSolution Area (SA) Penetration in Existing Base# Maintenance customers:Americas EMEA APAC1,96370% of existing customers deploy• JDA is a deeplyembedded strategicpartner for many of theonly 1 solution area (of 19)Significant opportunity tomine existing baseworld’s largest retailersand manufacturers• Customers with 10 orgmore solution areasspent approximately $5million on average withJDA last year1 2 3 4 5 6 7 8 9 10+290139 10471 4543 19 8 11JDA last yearCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL# of SAs installedAmericas:1,044 179 88 65 48 29 33 15 8 8EMEA: 726 74 32 21 11 8 4 1 – 2APAC: 193 37 19 18 12 8 6 3 – 1
  • 16. Financial Highlights Revenue growth from strong industry dynamics, JDA StrategicPriorities and solid market positioningGrowth 26%+ adjusted EBITDA margin with expansion opportunitiesthrough revenue growth and Cloud offering expansionHighlyProfitablePriorities and solid market positioningProfitable Stable, recurring revenues and free cash flow throughmaintenance, high services attach and certainb i ti b d li fStrong,StableC h Fl Deferred revenue, ~96% maintenance retention rates andgrowing Cloud revenue give visibility into future revenuesVisible andPredictablesubscription-based license feesCash Flow Deep supply chain expertise, broadest suite capabilities allprotected by a broad portfolio of patents create strong defensiblemarket leadershipDefensibleMarketPositionCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALmarket leadershipPosition
  • 17. Strong Financial PerformanceHighly Recurring Revenue Base2Highly Recurring Revenue Base2$267 $283$315Strong Cash Flow GenerationStrong Cash Flow Generation$140Operating Cash FlowLT CAGR: 13%$183$267 $2832009A 2010A 2011A 2012E$93$62$1102009A 2010A 2011A 2012E$1302009A 2010A 2011A 2012EOCF margin 24% 10% 16% 20%Retention rate 92% 96% 96%% total revenue 47% 45% 42% 45%2009A 2010A 2011A 2012E2 Recurring revenue represents maintenance, subscription, and long-term Cloud revenue1 Assumed midpoint of OCF and revenue ranges1Long-Term Revenue GrowthLong-Term Revenue GrowthNotes :1. Chart shows quarterly total revenues2 Q3/4 2012 i id i t f id f18% Growth Since Q2,20102. Q3/4, 2012 is midpoint of guidance for2H123. Average Q for 2013, 2014 and 2015represents midpoint of long-termorganic revenue growth projection(6-9% revenue growth)Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL(6 9% revenue growth)
  • 18. Focus on Growth
  • 19. Multiple Opportunities for GrowthJDA is Poised to Benefit From MultipleE i O t itiCapitalize oninstalled baseEvolve withthe marketGeographicexpansionInnovativetechnologyExpansion Opportunitiesinstalled base the market expansion technology• Long customertenure and highretention rate• Growingcomplexity ofglobal supply• Address existingcustomers’international• Poised to capitalizeon new technologypurchase cycle• Upsell/cross-sell existingcustomer basewith CloudServiceschain and drivingneed for newsoftwarepurchases• Omni channelexpansion efforts• Increaseemphasis in AsiaPacific, LatinAmerica and• Solutions addressmobile, social andCloud dynamics• Deliver innovativel ti JDAServices• Increased suitesales• Omni-channelretailing requiringintegratedsolutions acrossbrick and mortar,America andRussiasolutions: JDACustomerEngagement Cloud,Integrated Platform(v8.0), JDA CloudCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALWeb and mobileplatforms( )Optimize
  • 20. Key Organic Growth Driversy gGrowth StrategiesCloud Strategy• Drive significant recurring revenues• Improve customer satisfactionSupply Chain in Retail• Among the largest deals in past 3 years– Key wins include: Lowe’s, M&S, CVS,• Expect to be accretive to EBIT marginsCustomer Engagement Cloud• Retail industry is going through fundamentalWoolworths SA• Unique value proposition (scalability, proven)• Significant ROI (20-30% reduction is typical)change• Most retailers do not possess technology tosupport their ambitionsRussian ExpansionJDA 8.0 Suite• Integrating Manugistics, i2 and heritage JDA on oneplatform• First major release in 1Q13Russian Expansion• Net-new market for JDA (7 new deals in 1H12)• Growth market in retail and manufacturingFirst major release in 1Q13• Strengthen suite sales – largest dealsGlobal Strategic Accounts Program• Global sales and services teams focused on largestCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALGlobal sales and services teams focused on largestcustomers• Primary goal to sell large consulting deals ($25MM+)
  • 21. JDA Cloud TransformationStrategyStatement of DirectionStrategyStatement of DirectionWe believe that enterprise planning and optimization solutionswill be predominantly purchased on the Cloud in the near future• Reduced risk • Lower cost of implementation andsupportJDA customers will benefit from:• Increased agility• Sustainable ROI• Faster time to valuesupport• Higher quality service• Superior resultsJDA will benefit from:• Recurring revenue growth• Accretive growth• Industry leadership• Increased rate of new sales• Increased customer engagementCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALy p
  • 22. Cloud TransformationProject ScopeProject Scope• Simplify installs, patches and upgrades• Develop solutions only available on the JDA Cloud• Cloud offering enhancements (i.e., Disaster Recovery)InnovationC• Lead with the Cloud• Pre-sales for the Cloud• Integrated value propositionSelling• Marketing• Compensation• Support• Process improvements• Consulting and support value propositions• Education servicesDelivery• Customer touchpoints• Internal touchpointsSeamlessCustomerCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL• Improved customer experienceExperience
  • 23. World-Class LeadershipJim ArmstrongChairman, FounderJock PattonCompensationCommitteeArthur YoungNominatingCommitteeMike GullardAudit CommitteeDick HaddrillLeadIndependentCommitteeCommittee IndependentPete HathawayCFO (2009)Brian BoylanCHRO(2005)Hamish BrewerCEO(1994)Copyright 2012 JDA Software Group, Inc. - CONFIDENTIALDavid KennedyCLO(2012)Tom DzierskEVP Sales & Marketing(2006)David King, PhDEVP R&D(2004)David GaiEVP Services(2011)
  • 24. World-Class LeadershipWayne UsieSVP Retail (2001)Salil JoshiSVP CoE (2006)David JohnstonSVP Manufacturing (2001)Ken WilliamsSVP Support (2010)Razat GauravSales EMEA (2010)Derek SampsonSales Asia-Pacific(2011)John KellyManufacturing SalesNorth America (2006)Thad ZylkaStrategic Accounts(2011)Tim MahoneyRetail SalesNorth America (2006)Duane Kotsen Andrew WardBob Fuhrman Aditya SrivastavaJoe KingCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALDuane KotsenServices Americas(2009)Andrew WardServices Asia-Pacific(2012)Bob FuhrmanServices EMEA(2010)Aditya SrivastavaCTO (2010)Joe KingCloud Services(2009)
  • 25. Industry Growth Drivers in Retail and ManufacturingDavid JohnstonSenior Vice President, Supply ChainScott WeltyVice President, Retail Industry StrategyCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 26. The Changing Face of Retailg gRetailers are experiencingd ti k t hift b kSUPdramatic market shifts backto intimate personalizedservice standards of the pastPPLYCHAIN1-1 MassNCOMPLEEXITYCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL1800S TODAY
  • 27. Overcoming Challenges to Sustain Profitable GrowthRetailers’ ObjectivesOvercoming Challenges to Sustain Profitable Growth• New shopper behavior and expectations• Forcing unprecedented change• Placing increased pressure on retailers to sustain profitable growthChanges RequiredEnhanced Customer Experience• 360°view of the customer across all channels and real-time inventory visibility across they ynetwork• Seamless omni-channel, profitable execution (sell anywhere, shipanywhere…PROFITABLY)Localized and Personalized Merchandise Offers• Segmented assortments localized to consumer preferences• Optimized promotions and markdowns to drive higher margins and profit contributionsAgile and Responsive Supply Chain• Flexible and agile supply chain to meet dynamic needs of volatile consumer demandCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALFlexible and agile supply chain to meet dynamic needs of volatile consumer demand• Optimized inventory levels across the supply chain to meet demand at the lowest cost
  • 28. The Changing Face ofManufacturingManufacturingFROM TODemand visibilitylimited to outboundshipmentsFull visibility to end-customer andconsumer demandIndependentdepartmentalplans thatleverage regionalnetworks onlyIntegrated plansoptimized acrossa global networknetworks onlyA “one size fitsall” supply chainmodelMultiple supplychain models toprofitably servicediverse businessBADmodelStandardization-driven technologysegmentsBusiness ROI-driventechnology strategies -CCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALdriven technologystrategieswith emphasis onspeed to value
  • 29. The Supply ChainDistributionManufacturingSuppliersyChannelsStoreStoreWebsiteWebsitePlantsPlantsCatalogueCatalogueClick n’ CollectClick n’ CollectOutsourced OriginalOutsourced OriginalDesign ManufacturersDesign Manufacturers ggMobileMobileggCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALDigital MarketingDigital MarketingContractContractManufacturersManufacturers
  • 30. The Supply ChainDistributionManufacturingSuppliers ChannelsyStoreStoreSupplier Collaboration Customer CollaborationSupply ChainPlantsPlantsWebsiteWebsiteCli k ’C ll tCli k ’C ll tSupplier Collaboration Customer CollaborationS&OPSpace & Category ManagementOutsourced OriginalOutsourced OriginalDesign ManufacturersDesign Manufacturers CatalogueCatalogueClick n’CollectClick n’CollectMerchandise Planning & Assortment MgmtCustomer EngagementStoreOMobileMobileMerchandise OperationsPrice & Promotion ManagementperationsCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALContractContractManufacturersManufacturers Digital MarketingDigital MarketingTransportation & Logistics Management
  • 31. Supply Chainy• Selling diverse product sets across multiple channelsSelling diverse product sets across multiple channels• Managing complex global operations• Keeping up with the increased pace of product innovation for the “always on” consumerBusiness Challenges• JDA provides the unparalleled scale, automation and optimization needed to manage largeand complex supply chain networks• Unique ability to manage all types of products: fashion, grocery, consumer durables,personal care, high tech, automotive, chemicals and more…JDA Opportunity• 30% reduction in inventory• 10% improvement in forecast accuracy• 40% increase in profit marginValue Delivered• 80% reduction in cycle time• 12% increase in asset utilization• 100% ROI in less than 1 yearValue DeliveredJDA CustomersCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 32. Success StoryyBUSINESS CHALLENGESA hi b tt i i ht i t t l d d t th h di l l l• Achieve better insight into actual demand at the merchandise-class level• Configure flexible global supply networks that scale to meet demand• Create multi-tier replenishment systems that are directly tied to real-time demand• Increase vendor collaboration to give suppliers a longer-range view of requirementsRESULTSSOLUTIONS• Reduced inventory by $27 million• Increased service levels for imported products• Decreased space required for redistribution• JDA® Advanced Warehouse Replenishment• JDA® Demand• JDA® Fulfillment“Licensing software is all about forming a strategic partnership, because you’re going to be in“Licensing software is all about forming a strategic partnership, because you’re going to be inbusiness with that partner for at least the next 10 years. We selected JDA because it’s a bestbusiness with that partner for at least the next 10 years. We selected JDA because it’s a best--ofof--breed provider that continuously invests in its business through the acquisition of other leadingbreed provider that continuously invests in its business through the acquisition of other leadingCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALsoftware vendorssoftware vendors such as E3, Manugistics and i2.”such as E3, Manugistics and i2.”~ Greg Lenard, Director of Supply Chain, Ace Hardware
  • 33. Success StoryyBUSINESS CHALLENGESR id i t d ti f d t d k i• Rapid introduction of new products and packaging• Complex distribution network and logistics• Pressure on margins and growthRESULTSSOLUTIONS• 300% volume increase of new product offerings• 50% reduction in inventory levels• 15% percent increase in customer service levels• JDA® Demand• JDA® Fulfillment• JDA® Reporting“JDA’s products provided clear financial and operating results while improving our capability and“JDA’s products provided clear financial and operating results while improving our capability andcapacity. A lot of people talk about collaboration but we’re actually doing it and we certainly wouldcapacity. A lot of people talk about collaboration but we’re actually doing it and we certainly wouldnot be as successful without the help of JDA Software.”not be as successful without the help of JDA Software.”Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL~ Brett Frankenberg , Vice President of Supply Chain, CCBC
  • 34. Customer Collaboration• Poor on-shelf availability of productPoor on shelf availability of product• Limited visibility into consumer demand and channel inventories• Increase in assortment variations and promotionsBusiness Challenges• JDA is uniquely positioned to connect the largest retailers with their top CPG manufacturersto drive significant cost out of the extended supply chain• We have the scale to provide full visibility to optimally plan from the shelf (physical or virtual)back through the supply chain to raw material procurementJDA Opportunity• 40% forecast accuracy improvement• 70% channel inventory reduction• 2x turn improvement10% i t i f tValue Delivered• 40% increase in profit margin• 18% increase in on-shelf availability• 100% ROI within 1 year• 10% improvement in forecast accuracyValue DeliveredJDA CustomersCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 35. Success StoryyBUSINESS CHALLENGESP fit bl d t i t d ti t j t il lik H D t d• Profitably manage new product introductions at major retailers like Home Depot andLowe’s• Minimize manufacturing overtime, expedited shipments and excess inventory• Maximize accuracy by using POS-level forecasts and actual sales at the store levelRESULTSSOLUTIONS• Achieved 10.4% improvement in forecast accuracy• Reduced forecast development time by 60%• Slashed monthly production cycles by 80%• Created more variable product mix by store• JDA® Demand• JDA® Fulfillment• JDA® Reporting• Created more variable product mix by store“With JDA Demand, we can compare forecasts, shipment history, as well as POS and order history“With JDA Demand, we can compare forecasts, shipment history, as well as POS and order historyfor any of our SKUs at any given time. The forecast development cycle time used to take five daysfor any of our SKUs at any given time. The forecast development cycle time used to take five daysand now it takes only two days, allowing our planners to focus on other variations.”and now it takes only two days, allowing our planners to focus on other variations.”Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL~ Scott Strickland, Vice President, IT, Stanley Black & Decker Hardware and HomeImprovement
  • 36. Space & Category Managementg y g• Analyzing shopper behavior and the omni-channel “path to purchase”Analyzing shopper behavior and the omni channel path to purchase• Intensified product proliferation leading to the “paradox of choice”• Rationalization of space constraints and collaboration with suppliersBusiness Challenges• Produce optimized market specific assortments that drive top line growth and increased share• Produce optimized, market-specific assortments that drive top-line growth and increased shareof market• Scale to produce thousands of store-specific shelf plans within hours that are driven fromconsumer buying preferences• JDA has the largest category management customer community in the industryJDA Opportunity• 19% increase in sales• 29% reduction in inventory• 42% increase in inventory turnsValue Delivered• 99% in-stock positions• 10% increase in forecast accuracy• 95% process improvementValue DeliveredJDA CustomersCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 37. Success StoryyBUSINESS CHALLENGESO ti i t ifi t t t t l l d• Optimize store-specific assortments to meet local consumer needs• Provide vendors with more accurate, timely forecasts to reduce lead times• Analyze product success based on sales, margin, movement and other measures• Replace manual processes with automation and exception-based managementRESULTSSOLUTIONS• Increased average in-stock percentage from 92% to96%• Optimized cluster- and store-specific category andassortment plans• JDA® Floor Planning• JDA® Intactix Knowledge Base• JDA® Space Automation• JDA® Space Planning• Improved sales, inventory turns and margins• Increased planner/buyer productivity• Improved ability to monitor key performance indicators• Enhanced management of planograms• JDA Space Planning• JDA® Advanced Store Replenishment• JDA® Advanced Warehouse Replenishment• JDA® AllocationCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALEnhanced management of planograms• JDA® Seasonal Profiling
  • 38. Success StoryyBUSINESS CHALLENGESP f t il t d l t ifi h lf l• Pressure from retailers to develop store-specific shelf plans• Labor-intensive process taking months to complete• Shrinking retailer shelf-spaceRESULTSSOLUTIONS• 3% sales growth• 9% decrease in inventory levels• 4% improvement in on-shelf availability• Planograms now account for beverage seasonality and• JDA® Floor Planning• JDA® Space Planning• JDA® Intactix Knowledge Base• JDA® Planogram Generator • Planograms now account for beverage seasonality andremain optimized throughout the year• JDA Planogram Generator• JDA® Planogram ConverterCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 39. S&OP• Inventories and production not aligned with market opportunities and strategic plansInventories and production not aligned with market opportunities and strategic plans• Inability to make long-term plans aligned across sales, marketing, product development,supply chain and financeBusiness Challenges• JDA’s solution uniquely scales to manage the synchronization of regional S&OP processes and• JDA s solution uniquely scales to manage the synchronization of regional S&OP processes anda global S&OP process – needed for large tier I global companies• Our solution has been Class A certified by the industry-leading S&OP firm of Oliver Wight• Our scenario planning functionality gives executives the control they need to make informedstrategic decisions that translate directly into effective execution strategiesJDA Opportunity• Provides an 18 month rolling forecast• 40% reduction in global inventoryValue Delivered• 94% improvement in order promisingaccuracy• 9% improvement in service levelsValue DeliveredJDA CustomersCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 40. Success StoryyBUSINESS CHALLENGESI bilit t k d d l b d 4 k• Inability to make demand plans beyond 4 weeks• Misaligned inventories contributing to poor cash flows and increased risk• High obsolesce costRESULTSSOLUTIONS• 58% reduction in raw material inventories• 40% reduction in global inventories• Finished goods fulfillment increased from 90% to 98%• Increased on-time delivery rates• JDA® Sales & Operations Planning• JDA® Supply Chain Planner• Increased on-time delivery rates• Improved forecast accuracyCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 41. Customer Engagementg g• Empowered consumers driving personalized choices and customer serviceEmpowered consumers driving personalized choices and customer service• Profitably meeting consumer’s cross-channel expectations in real time• Empower associates with tools to deliver an enhanced shopping experienceBusiness Challenges• Real-time profitable promising of customer orders (patent pending)• Empower store associate to execute flexible price-matching to curtail “showrooming”• Leverages patented available and capable-to-promise technologyJDA Opportunity• Generally available fall 2012• Positioned to revolutionize cross-channel retailing standards of execution• Effectively positioning retailers to optimize in in all channels profitablyValue DeliveredValue DeliveredCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 42. Merchandise Planning &Assortment ManagementAssortment Management• Offering localized consumer-centric assortments aligned with financial KPIsOffering localized consumer centric assortments aligned with financial KPIs• Aligning demand-driven inventory flow plans that support assortments• Effectively managing cross-channel product lifecycle planningBusiness Challenges• Localized consumer-centric assortments tied to specific customer segmentation• Only vendor that integrates financial, assortment and supply chain planning• Largest install base in the retail community for merchandise and assortment planningJDA Opportunity• 15% inventory reduction• 20% gross margin increase• 10% increase in revenueValue Delivered• 50% reduction in planning cycle time• 25% increase in key item performance• 11% increase in operating earningsValue DeliveredJDA CustomersCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 43. Success StoryyBUSINESS CHALLENGESN t f b b d• New customer preferences by brand• Complex distribution network and logistics• Pressure on margins and growthRESULTSSOLUTIONS• 12% improvement in sales• 8% improvement in gross margin• 20% reduction of inventory• JDA® Enterprise Planning• JDA® Assortment Planning• JDA® Size Scaling• JDA® Channel Clustering• JDA Channel Clustering“With JDA, we can better invest our inventory dollars by honing in on certain attributes and finding“With JDA, we can better invest our inventory dollars by honing in on certain attributes and findingmore localized assortments that meet consumer demand. These new capabilities have attributed tomore localized assortments that meet consumer demand. These new capabilities have attributed tothe company’s strong financial gains and improved customer focus over the last few quarters.”the company’s strong financial gains and improved customer focus over the last few quarters.”Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL~ Mike McAbee, Vice President of Merchandise Planning and Replenishment, Hibbett
  • 44. Transportation & LogisticsManagementManagement• Increasing freight cost due to fuel prices, shrinking asset pools and driver shortagesIncreasing freight cost due to fuel prices, shrinking asset pools and driver shortages• Inefficient utilization from sub-optimized load building and order consolidation• Complexity in managing continuous moves and round-tripsBusiness Challenges• No other solution provider can handle the diverse requirements of the most complex globalNo other solution provider can handle the diverse requirements of the most complex globaltransportation networks across mature and emerging markets• JDA offers unique opportunities for customers to integrate transportation into supply chainplanning to synchronize planning with execution• JDA has one of the largest customer communities in the tier 1 marketJDA Opportunity• 8% annual reduction in transportation cost• 10% improvement in load consolidationValue Delivered• 67% improvement in planner productivity• 100% ROI within 1 yearValue DeliveredJDA CustomersCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 45. Success StoryyBUSINESS CHALLENGESD li b tt li l b d i f i ht d• Deliver more bottom-line value by reducing freight spend• Develop fully optimized daily loads for more than 2,500 shipments from more than 40locations• Increase productivity across the company’s centralized transportation planning teamRESULTSSOLUTIONS• $14M reoccurring annual savings• 67% improvement in planner productivity• Increased efficiency in warehouse and carrieroperations• JDA® Transportation Modeler• JDA® Transportation Manager / Planner• JDA® Platform“JDA’s solutions are best in class. We knew that JDA’s optimization capabilities could drive the type“JDA’s solutions are best in class. We knew that JDA’s optimization capabilities could drive the typeof freight savings we needed in the transportation organization at Kimberlyof freight savings we needed in the transportation organization at Kimberly--Clark.”Clark.”~ Tony Poole Corporate Transportation Kimberly-ClarkCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALTony Poole, Corporate Transportation, Kimberly Clark
  • 46. Sales and Marketing OverviewTom DzierskExecutive Vice President, Sales and MarketingCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 47. Sales and Marketing OverviewgJDA FocusConnect JDA Focus NRF Annual ConventionMarketingLeadGenerationBusiness Development Customer RelationshipManagementesprocessDirectSales ForceDirectSales ForceGenerationStrategic Account Reps Major Account RepsmmanagessaleworldwideSales ForceSales ForceSalesSenior Account Reps Inside Sales RepsAlliance PartnersAlliance PartnersSalesforce.comCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 48. Primary Customer Segmentsy gRetailers Manufacturers & Distributors• $250MM+ revenue with 3,348 retailersworldwide1• 73 of the top 100 retail companies use JDA2• $500MM+ revenue with 9,071 M&Dsworldwide1 (5,027 are greater than $1B)• i2 and Manugistics acquisitions cementedJDA’s leadership in SCMRetailers seek retail specific solutions • Diverse set of supply chain challengesTargetbusiness size• Retailers seek retail-specific solutions• Sub-industry specifics drive requirements andsolution needs• Diverse set of supply chain challenges• Process- and discrete-specific needs• Point solutions with increasing shift toward • Holistic integrated end-to-end solutionsBuyercharacteristicsgmulti-modules and suitesgWhat they buyJDA deli ers ertical e perts ith 10+ ears of e perience to ser e each segment’s niq e needsCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL1 Source: D&B2 Top 100 Retailers, STORES, 2011• JDA delivers vertical experts with 10+ years of experience to serve each segment’s unique needs• Highly trained and experienced sales specialists provide significant value proposition and ROI to customers
  • 49. JDA’s Market Leadership inPlanning and OptimizationPlanning and OptimizationJDANicheERP• Integrated solution platform serving multiple industry verticals• Competitors facing integration challenges and lack focus oncore SCM solutions• Commitment to innovation; outpacing competitorsCl d i C E l fEnd-to-endsolutionInnovation &OLUTIONS– Cloud services, Customer Engagement platform• Solutions developed to scale across enterprises of all sizes• Experienced, dedicated sales force aligned to end markets‒ 10+ years experienceP f i l i lti d tiInnovation &scalabilityIndustrySOVICES• Professional services, consulting, education– JDA University, Center of ExcellenceexpertiseSERVJDA Delivers Real ResultsSupply Chain• Reduce logistics costs15-20%• Decrease productioncosts 20-30% throughimproved resourceExecution• Enhance servicelevels with decreasedproduct and programlifecycle costsRapid deplo ment andAnalytics• Improve forecastaccuracy by 10%+with some customersmaintaining as high as98% average forecastMerchandising• Increase full-pricedsell-through by 10-30%• Increase categoryl t 100% dPricing• Increase customertraffic with moretargeted ads andpromotionsUse cons mer centricCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALimproved resourcedecisions• Rapid deployment andfaster time to value98% average forecastaccuracy• Reduce supplierresponse time to orderchanges by 40-50%sales up to 100% anddecrease inventorycosts by as much as40%• Use consumer-centricmerchandisingprocesses to buildbrand loyalty
  • 50. Alliance Partners and Value Added Resellers (VAR )Strong Global PartnershipsAlliance Partners and Value Added Resellers (VARs)Joint engagement model enhances global reach and scaleAmericasSelect VARs Select Alliance PartnersEuropeAsia PacificCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALApproximately 8% of sales are executedby VARsApproximately 40% of sales are influencedby alliance partners
  • 51. License Revenue – SourcesLicense Revenue Sources ($MM)24%16%23% 25%76%84%77% 75%ExistingNew2010 2011 1H 20122009Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL2010 20112009
  • 52. Deal Statistics (> $1 Million)# f d l $1MM2 ASP( )Deal Statistics (> $1 Million)$1,00020# of deals > $1MM2 ASP110910 10 11 $600$80010356 735987$200$400101$00Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL1 ASPs displayed in 1000s
  • 53. Recent License andSubscription PerformanceSubscription PerformanceSoftware License and Subscription (Pre-Restatement) ($MM)$38$42$36$37 $38 $35$140$160$40$45Total software TTM Total Software$29$22$31$28$60$80$100$120$15$20$25$30$35$0$20$40$0$5$10$15Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12• Recent slowdown in North America retail software revenues (4Q11 & 1Q12)• Trend has reversed in 2Q12 and projection indicates strong performance in 2H12EMEA 2011 organic growth 88%Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL• EMEA 2011 organic growth 88%• Asia-Pacific year-over-year growth 72% in 2Q12
  • 54. Base Growth StrategiesgPenetrate EmergingMarketsLand & Expand• Apply proven, process-driven, large-accounth d l i• Leverage worldwide salesand support infrastructureto penetrate emergingmarkets• Partner with channelDrive ASPs• ASP expansion – AmericasASPs grew from $310K inmethodology to winmarquee accounts• Up-sell, cross-sell• Partner with channelproviders to deliver accessto JDA solutions andsupportg2006 to $700-$800K today• Replicate ASP expansionmodel worldwide• JDA delivers proven valueproposition to businessesproposition to businessesdemanding higher ROICopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 55. Organic Growth DriversgGrowth StrategiesCustomer Engagement Cloud• Retail industry is going through fundamentalchangeManufacturing User Experience• Stronger integration• Strengthen suite sales – largest deals• Most retailers do not possess technology tosupport their ambitionsRussian ExpansionNet new market for JDA (7 new deals inStrengthen suite sales largest deals• Differentiation against point-solution providersGlobal Strategic Accounts Program• Global sales team focused on largest customers• Net-new market for JDA (7 new deals in1H12)• Growth market in retail and manufacturingSupply Chain in Retailg• i2 large account methodology deployed acrossJDA• Scalable model addressing complex globalcustomers• Among the largest deals in past 3 years(Lowe’s, M&S, CVS)• Unique value proposition (scalability, proven)Significant ROI (Meijer $116M working capitalcustomersCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL• Significant ROI (Meijer $116M working capitalreduction)
  • 56. Services OverviewDavid GaiExecutive Vice President, ServicesCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 57. Services OverviewGlobal Strategic Accounts (GSA)vices• Develops globalstrategies,processes andmethodologies• Industry-leadingCloudCloud ConsultingConsulting EducationEducationSupportSupportGlobal Strategic Accounts (GSA)Servy gglobal CoEcapability• Develops newinitiatives andstandard servicesCenter of Excellence (CoE)• Integrated go-to-market approachRegionsAmericasEMEAmarket approach• Executesstrategies,processes andmethodologies• Regional leadersCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALAsia Pacific• Regional leadersresponsible forall global services
  • 58. Sales Coverage Model forServicesServicesA complete sales coverage model to drive revenue growth for JDA Global ServicesNewNew Accounts• License Sales AssociatesAccountsSt t i• Services Sales AssociatesStrategic AccountsStrategicAccounts• Global Services Directors• CRMsExisting AccountsExisting Accountsg• Services Sales Associates• CRMs• Support LiaisonsCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 59. Consulting Services• ~$235MM revenue (~35% of total)160 70% tt h t• 1,000 professionals worldwide38 ffi i 20 t i• 60-70% attach rates• Approximately 350 projects in 2011• 10+ years of SCM experienceKeyStatistics• 38 offices in 20 countries• Every 12 hours a customer goes live with aJDA solution• 160-200 projects active at any time• Industry thought leadership and experience• Domain expertise in optimizing JDA IPCompetitiveDiff ti tiThird-PartyProvidersCompetitorsJDA• Global service platform dedicated to SCM• Enables customers to achieve higher ROI• Best-of-breed solutions and servicesDifferentiation• 31 professionals acrossU.S. and India• Deploys industry-leadingConsultingSegmentStrategic ServicesStrategic Services• 60 professionals withcollective industryexperience >1,000 yearsTechnical Services• Positions customer forbusiness improvementthrough implementationImplementation ServicesCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALp y y gpractices, optimizing SCMperformance1 Excludes revenues from Cloud• Tactical implementation,tuning, upgrades, setup• Expands value of initialimplementation
  • 60. Consulting Services – GrowthStrategyConsulting Services Growth StrategyStrategy• Earn “strategic advisor” status with customers and prospects; pull-through JDA software to drive overall company growth• Build out an industry-leading and validated portfolio; services focused ony g p ;customer outcomes and needs by sector• Create a differentiated approach in portfolio and delivery:‒ Large, complex engagements (global strategic accounts)P k d t bl i ith ti i d d li d l‒ Packaged, repeatable services with optimized delivery model• Mine significant install base and expand to untapped geographies• Leverage “Center of Excellence” (CoE) to enhance serviceinfrastructure and customer engagementsinfrastructure and customer engagements• Attach to Cloud Services• Develop Alliance Partner expertise around JDA IP• Near shore consulting in Poland to support Russian expansionCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL• Near-shore consulting in Poland to support Russian expansion
  • 61. Global Strategic AccountsEngagement ModelsEngagement ModelsA defined, structured and differentiated approach for globally managing accounts(customers and prospects) strategic to JDA’s mission as The Supply Chain Company®Corporate/Strategic Accounts• Global Services DirectorCorporateAccounts• Strategic Sales AccountManagerEnterpriseAccountsEnterprise Accounts• Region SL Account Managers +Services Sales AssociatesChannel AssistCommercial AccountsCommercial Accounts• Region SL Account Managers+ Services Sales AssociatesCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL• Global BusinessDevelopment – PSP ProcessChannel Assist
  • 62. Global Strategic Accounts KeyElementsElementsAligning with customers in a structured solution-selling approach to make supplychain management a strategic competitive asset• Experienced global services director and strategic sales account manager• Coordinated resources across JDA• Customer lifecycle best practices and JDA Enterprise Methodology (JEM)AccountManagement1• Customer business strategy aligned with JDA strategies• Customer-JDA face-off matrix with rapid escalation• Quarterly executive meetings and scorecard monitoringStrategy andExecutiveAlignment2• Executive-level reviews internally and with the customer• Consistent delivery of global best practices (JEM)• Executive sponsor programGovernance34 • Best-practice workshops and roadmap updates• Day-to-day advice on SCM best practices• End-to-end solution workflowsCustomer strategic direction aligned with roadmapsTrusted Adviceand ThoughtLeadership45Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL• Customer strategic direction aligned with roadmaps• Direct access to JDA Product Management Group• Participation in lead customer groups to drive new solution directionR&D Integration5
  • 63. Global Strategic AccountsRollout PlanRollout PlanDrivingT f ti3• Integrated salesapproach• Consistent globalThoughtLeadershipTransformation2• Cloud led• Unleash tocustomers andmarket• Leveragedi d tConsistent globalteam approach• Long-termpartnership• Transformationalvalue deliveryExecutionGlobalLeverage10• Integrated team• Common• Cloud led• Programmaticglobal bestpractices• Segmentedcustomerindustryexpertise• E2E solutionexpertise• Programmaticli k dvalue deliveryExecutionExcellenceCommonmethodology• Project focus• Businesspredictabilitycustomerprogramslink to productinnovationCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL2009–2012 2012–2014
  • 64. Support ServicesSupport• Focused on retention and customer satisfaction• 95%+ retention rates• 80% adjusted EBITDA margins95% t ti f ti tProfile• 95%+ customer satisfaction rates• Attached to nearly all license deals at rate of 19%• Expand to premium offerings such as 24x7 supportto drive renewal rates• Improve systems and processes to enhance scale synergiesGrowth • One face to the customer to better serve the customer• Global follow-the-sun service• Focus on realized price increases• Increased focus on mining customer insightsGrowthStrategiesCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALg g
  • 65. Maintenance ProfileSales andMarketingExecutiveSummaryIndustryOverviewStrategicPrioritiesServicesProductDevelopmentOrg OverviewFinancialOverviewCustomers2009–2012E Maintenance Revenue$179$246 $266 $270$136$196 $212 $2162009–2012E Adjusted Maintenance EBITDA2009A 2010A 2011A 2012E 2009A 2010A 2011A 2012EGrowth (1 9%) 37% 8% 2%Adj. EBITDA76% 80% 80% 80%11%Growth (1.9%) 37% 8% 2% Margin76% 80% 80% 80%2011 Revenue by Type2011 Maintenance Revenue by Geography66%23%11%AmericasEMEAAPAC38%62%MaintenanceOther revenueCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 66. Education ServicesEducation• Customer and partner training and certification• ~$10MM business with expansion opportunities‒ 8,000 transactions per year‒ More than 2 690 maintenance-paying customersProfileMore than 2,690 maintenance paying customers• High customer satisfaction ratingsIncreasing training attach rate to new license and services• Increasing training attach rate to new license and servicesfrom 3% 1H 2012‒ Opt-out program is a key driver• Increase back-sell engine‒ Pre-sales roles globallyGrowth Pre sales roles globally‒ Support renewal opportunities• Localization of key training content‒ Language and units of measure• New certification programGrowthStrategiesCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALp g‒ Space planning and demand
  • 67. Center of Excellence (CoE)( )Center of Excellence (CoE)Offices located in Hyderabad and Bangalore, India ― 72% of global PD resourcesOffices located in Hyderabad and Bangalore, India 72% of global PD resources• 375+ professionals, 39% of global resources• 36% of global consulting hours delivered from CoEConsulting• Integrated global project deployment methodology• 125 professionals 32% of global resources125 professionals, 32% of global resources• Frontline call handling• Co-located with product development – rapid response• Integrated with global follow-the-sun processesSupport• 165+ professionals, 70% of global resources• Advanced, scalable pod structureCo located with JDA Product Development and SupportCloudCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL• Co-located with JDA Product Development and Support• Industry domain expertise – JDA Cloud Optimize
  • 68. Cloud Services OverviewJoseph Kingp gSenior Vice President, Cloud ServicesCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 69. Our Cloud StrategyJDA Cloud Services is driving a paradigm shift in enterprise softwaredevelopment deployment and support that provides our customersgydevelopment, deployment and support that provides our customerswith:• Improved business agilityRi k iti ti• Risk mitigation• Investment protection• Increased customer valueJDA believes it can seize a first-mover advantage• The first major planning and optimizationsolutions platform offering a true CloudcapabilityCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 70. Our Cloud StrategygyJDA is transforming into a Cloud- Our definition of Cloud EnabledJDA is transforming into a Cloudbased solutions provider in the next3-5 years. We are well on our way:• ~$45M of revenue from <100Our definition of Cloud Enabled• Rapid deployment: Customerenvironment provisioned in hours,rapid implementation templatescustomers in 2012• Three complementary Cloud serviceofferings• Superior quality: High performance,always on, anywhere• No more upgrades: Seamlessconsumption of new capabilities and• Integrated service delivery:Consulting, education, Cloud servicesand support• Re-engineered direct field salesconsumption of new capabilities andtechnology• Capital licensing – flexible model• Superior results maximizing theRe engineered direct field salesexecution model• Proven world-class global enterpriseCloud infrastructure• Superior results, maximizing thepotential from JDA solutions• We do not plan to provide multi-tenant– no business benefit to customers orCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALJDA
  • 71. Why Cloud?yAddresses challenges with:E • Getting to go-live quickly• Risk ownershipEnsureSuccess andMitigate RiskAddresses challenges with:• Staffing mismatching (business and IT)BusinessA ilit • Expanding or contracting to accommodate spikes in business• Absorbing changeAgilityAdd h ll ithAddresses challenges with:• Knowledge loss in business and IT• Complacency, especially with upgradesI t l IT it d killAchievable andSustainableROICopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL• Internal IT capacity and skills
  • 72. JDA Cloud ServicesSupply chain expertise and complete solution lifecycle management delivered through the CloudPerformPerformLaunchLaunch OptimizeOptimize EvolveEvolve• Rapid deploymentthrough iLab• Speed, agility andaccelerated ROI• System tuningand health checks,capacity on demand• Availability, security,and problem and• Solution/businesssynchronization• Knowledgeenhancement andcontin o s• Build on experience,leveraging JDApartnership• Expand supplychain impro ementsand problem andchange management• 98% of productsnow Cloud enabledcontinuousimprovementchain improvementsto other businessareasCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 73. Enablement PhasesJDA Architectural Evolution to Full Cloud EnablementPhase 1 Phase 2 Phase 3JDA Architectural Evolution to Full Cloud Enablement• Level 0 CloudEnablement• Patch release process• Level 1 CloudEnablement• Deployment of patch• Level 2 CloudEnablement• Deployment of “Nopdesign• “No Upgrade” designp y prelease process• “No Upgrade” design/implementationprocessp yUpgrade” process• Continuous releaseand deploymentpCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL2012 2014–20152013
  • 74. Key Growth Driver With Significant MomentumCloud ServicesSelect Cloud CustomersKey Growth Driver With Significant MomentumKey Cloud Metrics• More than 1 million SKUsoptimized per week• Nearly 3 million forecastingplans per yearManufacturing Cloud• Replenishment and demandplans generated for morethan 2 million SKUs• Optimize replenishment forRetail Cloud• More than $3 billion totalfreight spend managed peryear• Nearly 2.5 million total loadsTransportation Cloud• More than 1.8 millionconsumers connecting to theJDA Cloud Services e-commerce solution frome-Commerce Cloudp p y• More than 1 million supply /replenishment / inventoryplans generated per yearp p100+ distribution centers and10,000+ stores• 100+ analytics reports perweek• 100,000+ SKUs across 150+retail plans generated peryprocessed per year• More than 5 million totalshipments processed peryear• Nearly 16 million EDImessages processed peracross the globe• JDA delivers more than12,000 store pages/websitepages• More than 3 million pricingpossibilities through the JDACopyright 2012 JDA Software Group, Inc. - CONFIDENTIALe a p a s ge e a ed peyearessages p ocessed peyear• 1,000+ carriers usingEDI/interfaces to process theloads for all customersCustomer Engagementplatform e-commercesolution• More than 14,027 websitessupported
  • 75. JDA Cloud ServicesJDA Cloud is…• Supply chain expertise and complete solution lifecycle managementto let customers focus on results, not softwareBy delivering capacity and capability– By delivering capacity and capability• JDA Cloud ensures success and mitigates risk• JDA Cloud provides a model for efficiency, performance andbusiness agility• JDA Cloud is a protector of our customers’ investments with anachievable and sustainable ROICopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 76. Competitive AdvantageJDA CloudCompetitive AdvantageCapacityp y• Providing customers’ IT organizations with the ability to delivervalue versus run and maintain softwarePerformance availability security and problem and change– Performance, availability, security, and problem and changemanagement– Incremental solution: Separate from license, implementation andmaintenance (SaaS available upon request) 3-year contract; SLAmaintenance (SaaS available upon request) 3 year contract; SLAprovided and DR options available @JDA, @Customer, @PartnerToday – Competing with Oracle Cloud, SAP Cloud,E2Open LogilityE2Open, Logility• They all claim they deliver Capacity– Run, maintain, reportingCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL– None deliver Capability
  • 77. Competitive AdvantageJDA CloudCompetitive AdvantageCapabilityp y• Delivering SCM expertise to SCM professionals• Delivering the ability to improve business results– Packaged solutions: Reporting, analytics, recommendations, businesssupport• Demand forecasting, category management, replenishment planning• CPFR, shelf-connected supply chain, inventory optimization• Transportation modeling, size scaling, channel clusteringCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 78. Success StoryyBUSINESS CHALLENGESL db t ti i t ithi th th f i i ft• Leverage a sandbox testing environment within three months of acquiring softwareand services• Leverage an environment to accelerate system configuration for JDA Demand, JDAFulfillment, and JDA advanced replenishment (E3) solutionsRESULTSSERVICES• Speed to value• JDA Cloud-based solution and required functionalitydelivered within days of initial order• Full production-level support delivered• JDA Cloud LaunchSOLUTIONS• JDA® Demandon Day 1• JDA® Demand• JDA® Fulfillment• JDA® Advanced Replenishment (E3)solutionsCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 79. Success StoryyBUSINESS CHALLENGEM l b l i i ti t t th ld’ d l t• Manage global e-commerce spanning six continents at the world’s second largestPC companyRESULTSSERVICES• Lenovo has grown profits by more than 225% andincreased revenues by more than 100%• Achieved $200 million in infrastructure cost savings onan annual basis• JDA Cloud ServicesSOLUTIONS• JDA® Web Commerce• JDA® Web Commerce• JDA® Agile Business ProcessCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 80. JDA Cloud – Technologygy• Americas (Dallas and Kansas City) Layered Tech• EMEA and APAC data centers(Layered Tech + Thales)• High availability and various DR Options• 1,000+ application instances supported• 764 TB SAN supporting all customerenvironments• Storage (SAN) EMC VMAX• High availability and various DR Options• More than 99.99% uptime(719.9 hours vs. 720 hours/30days)• More than 1,210 systems managed• Storage (SAN) – EMC VMAX• Hardware platform: Dell rack servers;AIX Platform: Blade serversCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL(85% virtualized)
  • 81. Accelerated Sales GrowthMarketingg• Cloud thought leadership• Cloud – standard platformSSales• New license attached• JDA installed baseJDA installed base• Grow and maintain• JDA Cloud installed baseCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 82. Accelerated Sales GrowthNew License Attached• License sales organization trained and incented to sell new license applications asCloud deployed and enabled• Cloud value proposition and Cloud as competitive advantage specific for license salescreatedcreated• Sales account managers and sales leaders carry Cloud Services new bookings quota• License pre-sales associates Cloud trained and compensated• Incremental compensation plans in place• Incremental compensation plans in placeTraining• Initial and ongoing Cloud trainingSupport• Value positioning and supporting materials created• Dedicated Cloud pre-sales embedded on all license sales teamCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL• Cloud experts available 7/24 to help provide Cloud sales and technical expertise tolicense sales cycles
  • 83. Accelerated Sales GrowthInstalled Base Conversion• Target 2,690+ installed base customers• Dedicated installed base Cloud sales account managers• Consolidated Services Sales teams (within regions)Consolidated Services Sales teams (within regions)• Education, Support, Consulting, Cloud account managers• Each Services sales associate is specialist but carries Cloud quota as well• Global Support associates trained to drive pipelinepp p p• Utilize real-time support requests to drive Cloud pipeline• Compensation for Cloud in place for services teams• Training – initial and ongoingg g g• Cloud pre-sales experts• Focus on:• Transition from current behind-firewall to CloudCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALTransition from current behind firewall to Cloud• Upgrade opportunities (JDA software and technology)
  • 84. Financial overviewPeter HathawayyExecutive Vice President and Chief FinancialOfficerCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 85. Financial Highlightsg gRevenue growth from strong industry dynamics JDA Strategic26%+ adjusted EBITDA margin with expansion opportunities throughHighlyRevenue growth from strong industry dynamics, JDA StrategicPriorities and solid market positioningGrowth26%+ adjusted EBITDA margin with expansion opportunities throughrevenue growth and Cloud offering expansionHighlyProfitableStable, recurring revenues and free cash flow through maintenance,Strong, StableDeferred revenue, ~96% maintenance retention rates and growingVisible andStable, recurring revenues and free cash flow through maintenance,high services attach and certain subscription-based license feesStrong, StableCash FlowDeferred revenue, 96% maintenance retention rates and growingCloud revenue give visibility into future revenuesVisible andPredictableCapable of delivering strong cash flows through low capital intensitySignificantO tiCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALCapab e o de e g s o g cas o s oug o cap a e s y(~3% of revenue) and working capital (billing model)OperatingLeverage
  • 86. Financial Snapshot($ in MM)2009–2012E Restated Revenue1 2009–2012E Restated Adjusted EBITDA1$391$594$691 $683$102$136$200$1802009A 2010A 2011A 2012E 2009A 2010A 2011A 2012E2009–2012E Pre-restated Revenue1 2009–2012E Pre-restated Adjusted EBITDA1$617 $672 $683$161$180 $180$386$6172009A 2010A 2011A 2012E$97$161$180 $ 802009A 2010A 2011A 2012ECopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL1 2012E based on midpoint of guidance2009A 2010A 2011A 2012E 2009A 2010A 2011A 2012E
  • 87. Revenue Detail by Geographyy g y2011 Total Revenue by Geography 2011 Software Revenue by Geography64%20%16%AmericasEMEA 64%27%9%AmericasEMEAAPAC APAC24%11%2011 Consulting Revenue by Geography2011 Maintenance Revenue by Geography64%12%24%AmericasEMEAAPAC66%23% AmericasEMEAAPACCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 88. Revenue Detail by Typey y2011 Total Revenue by Customer Vertical43%42%6%6%3%ManufacturingRetailWholesale DistributionS iServicesOther2011 Total Revenue by Type and Customer ConcentrationServices% TOTALREVENUE% TOTALREVENUEServices(7% Recurring)License(11% Recurring)Maintenance(100% Recurring)39%38%23%75%25%Non Top 10CustomersTop 10 CustomersCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALType Concentration(100% Recurring) 25%Top 10 Customers
  • 89. 2012 Guidance$MM, except per share data; shares in MM 2012 OutlookSoftware revenue $140 – $150Maintenance revenue $270Consulting revenue $265 – $270Total revenue $675 – $690Adjusted EBITDA1 $175 – $185Adjusted non-GAAP diluted EPS1 $2.05 – $2.20Adj t d h fl f ti 1 $130 $140Adjusted cash flow from operations1 $130 – $140Capital expenditures $20Adjusted free cash flow1 $110 – $120Other miscellaneous:Other miscellaneous:Cash taxes $10Cash interest $25Weighted average shares 43Adjusted free cash flow / share 1,2 $2 67Copyright 2012 JDA Software Group, Inc. - CONFIDENTIALAdjusted free cash flow / share $2.671 Excludes costs associated with the revenue recognition investigation and restatement, which are expected to be approximately $17 million2 Calculated using the midpoint of the adjusted free cash flow range
  • 90. Long-term Financial Outlookg2012 revenue($ in MM)’10 – ’121 LT target( )$683 Revenue growth 7% 6 – 9%Adjusted EBITDA margin 26% ~30%$145 Software revenue growth 13%3 5 – 10%Total$145 Software revenue growth 13%3 5 – 10%Adjusted EBITDA margin2 ~30% 30 – 35%$270 Maintenance revenue growth 5% 3 – 5%SoftwareMaintenanceOperatingleverageAdjusted EBITDA margin ~80% 80 – 82%$268 Services revenue growth 7% 10 – 13%Adjusted EBITDA margin 24% ~30%MaintenanceServicesdriven throughgross marginAdjusted EBITDA margin 24% 30%Product development 11% ~11%Sales & marketing 14% ~14%OperatingExpenses(% of Revenue)Copyright 2012 JDA Software Group, Inc. - CONFIDENTIALGeneral & administrative 10% ~9%Note: 2012 revenue represents midpoint of guidance. Segment adjusted EBITDA margins represent contribution margins.1 Adjusted EBITDA margins are averages from 2010 to 20122 Software adjusted EBITDA represents Sales & Marketing EBITDA only3 Software license growth is 5% on a pre-restated basis( )
  • 91. Long-term Growthand Margin DriversLong-Term Growth Driversand Margin DriversLong-Term Margin Drivers• Cloud strategy• Customer Engagement Cloud• Russian expansion• License-based revenue growth• Cloud growth• Value driven rate increases in• Russian expansion• Supply chain in retail• JDA 8.0 suiteGlobal Strategic Acco nts• Value-driven rate increases inServices through GlobalStrategic Accounts and Cloudattach rates• Global Strategic Accountsprogram• Operating expense leveragefrom enhanced processes andsystemsCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 92. Strong Cash Flow ProfilegStrong Cash Flow Generation Highly Recurring Revenue Base2$183$267 $283 $315$93$62$110$140Operating Cash Flow LT CAGR: 13%$1302009A 2010A 2011A 2012E2009A 2010A 2011A 2012E2 Recurring revenue represents maintenance subscription and1 Assumed midpoint of OCF and revenue ranges1OCF Margin 24% 10% 16% 20%1 Retention Rate 92% 96% 96%% TotalRevenue 47% 45% 42% 45%Capital Expenditures3• Infrastructureand ERPNet Operating Losses• Deferred tax asset of $285MM on balance$19 $203Base Cloud2 Recurring revenue represents maintenance, subscription, andlong-term Cloud revenue1 Assumed midpoint of OCF and revenue rangesand ERPinvestments• Investmentin Cloud tosupportDeferred tax asset of $285MM on balancesheet, which is expected to be fully utilized4• Minimal cash taxes through 2016• Tax benefits expire between 2017 and 2029$7$17$19 $203$7$10$5$14Copyright 2012 JDA Software Group, Inc. - CONFIDENTIALppgrowth 2009A 2010A 2011A 2012E4 As of 06/30/123 No breakout available for 2012E
  • 93. Enterprise Objectives for ITInvestments• Improve the customer experienceInvestmentsProgram Total($ in MM)• Support:– Achieved scale for JDAAcquisition growth and readiness( )Global process design $1Opportunity to cash automation 3– Acquisition growth and readiness• Update technical architecture• Create scalable processes andCRM upgrade1 11Financial ERP upgrade 4efficiencies• Evolve business analytics to driveperformanceHRIS upgrade and integration1 4Education services and other 2T t l $25Total $252 .5 to 3 year transformation timeline,incl ded in cape e pense and long term financial o tlookCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALincluded in capex, expense and long-term financial outlook1 Estimate of capital costs and operating expenses including 3 years of subscription fees for Cloud solutions
  • 94. Cloud Services Business ModelSignificant Cloud Opportunity Cloud Revenue and Margin~$40MM?$2$29 $38Install base drivesopportunityToday(100 cloudcustomers)2,690+ existingcustomers$2FY09 FY10 FY11 Long TermGrowth Nm 31% ~30%Adj. EBITDAMargin (68%) 2% 21% 30+%Cloud investment Cumulative Cloud EBITDACloud Model Observations• Transformation of GTM strategy drives opportunityIllustrative Cloud Payback$22 $14$28$42Cloud investment Cumulative Cloud EBITDA gy pp y• First-mover advantage to seamless upgrades• Cloud offering does not change the IP revenue model‒ Licenses still sold as ILF• Revenue included in Consulting ServicesSolid return oninvestment: ~1.5 yearsCopyright 2012 JDA Software Group, Inc. - CONFIDENTIALCapex Year 1 Year 2 Year 3 • Margin expansion from leverage in people and PODstructure• Achievable and sustainable ROI
  • 95. Capital Allocation• JDA has a strong capital positionDebt Financing Options• Objective to maintain flexibility to fund value opportunities, debt repayment, sharerepurchasesValue Opportunities• Strong cash position provides ample liquidity• Actively monitoring debt market conditions• Evaluate financing options opportunistically• Ability to call senior notes (8%) at 104 on 12/15/12• History of successful acquisitions created theleader in supply chain management• Debt repayment alternative leading to EPSincreases vs.O t i ti h f h l iAbility to call senior notes (8%) at 104 on 12/15/12and at par after 12/15/13CashRevolving credit facility¹Senior notes due 2014$100Liquidity:$469• Opportunistic repurchase of shares leavingcapacity to pursue other value-enhancing options$100$369$275Dec-14Copyright 2012 JDA Software Group, Inc. - CONFIDENTIALQ2 FY12 FY13 FY141 Currently undrawn as of 06/30/12
  • 96. Restatement SummaryResultsyRevenue Accounting Area• No findings of fraud or intentional wrongdoing• Did not impact actual cash received or reported• Does not call into question the existence of totalreported revenue but changes the time periods112233• Linkage: Software license revenue was recognizedprior to execution of linked services contract• Revenue was deferred from originally recorded quarterand recorded in the immediate subsequent quarter1122p g pduring which revenue was recognized• Most significant impacts are in 2010 (revenuedecreased by $23.5 million) and 2011 (revenueincreased by $19.5 million)• No material future impact expected445• VSOE: VSOE did not exist for certain types ofconsulting services including Cloud Services• Up-front revenue was deferred and recorded over theshorter of a 3-year period or when VSOE isestablished3344No material future impact expected55• Certain aggregated adjustments previously consideredimmaterial were also recorded55Staffing: Upgraded/added personnel with extensive software industry experience to accounting and revenueRemediation1• Staffing: Upgraded/added personnel with extensive software industry experience to accounting and revenuerecognition teams (hired new CAO, VP Revenue Recognition, VP Internal Assurance)• Processes: Expanded revenue recognition policies and procedures, improved and automated sales and contractingprocesses• Training: Expanded mandatory revenue recognition training to sales and services organizations112233Copyright 2012 JDA Software Group, Inc. - CONFIDENTIAL• Governance: Appointed new Board member, Lead Independent Director and Chief Legal Officer; all with significantsoftware and technology experience44
  • 97. Investment Highlightsg gLeading provider of supply chain Attractive financial profile• Leading provider of supply chainsolutions• Favorable industry dynamics• Large, loyal and diverse customer baseFinancialHighlights• Attractive financial profile• Significant opportunitiesfor growth• Cloud transformation strategy• Customer Engagement Cloud• Supply chain in retail• JDA 8.0 suiteStrategic Customer Engagement Cloud• Russian expansionJDA 8.0 suite• Global Strategic AccountsprogramgPriorities• No significant litigation• Restatement complete• Governance changes• Management changesPositiveDevelopmentsCopyright 2012 JDA Software Group, Inc. - CONFIDENTIAL
  • 98. Thank You

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