MC2: Managing Credit, Collections & Deductions

1. MC2:Managing Credit,Collections & Deductions -Moving money from the balance sheet to the income statement

2. History • Founded in February of 2001 to create the best of breed Credit, Collections and Deductions application for manufacturers, distributors, service & construction • Partners • SAP/ASUG • Infor Complementary Partner • Oracle / PeopleSoft • JDE Quest Partner • CashBook • Over 130 customers worldwide • Our application will manage over 60 Billion dollars in FY 2006 • Every customer is live and on the current release • Never had a failed project

4. Collectables – Clean receivables Disputes – Dirty receivables Deductions- Dirty receivables AR Database’s are Complex • Clean Receivables • Collectables : transactions that are not disputed & whose receipt can be forecast • Dirty Receivables • Disputes : transactions that disputed and not paid • Deductions : transactions that are customer debits

5. Headquarters Parent Parent Customer Customer Customer Customer Invoice Invoice Invoice Invoice Invoice Invoice Invoice Portfolio Challenges

6. What problem are we solving? • AR analysts manage up to 5 five different processes • Order hold/release • Collections • Credit • Deductions and disputes • Sales rep support • Each process requires different workflows • ERP Systems are designed to process transactions and post to the GL • What tools are being used today to manage this strategic asset?

7. Current AR Tools Outlook/Notes • Ticklers • Collaboration • Contacts AR system • Ticklers (?) • Notes • Contacts(?) • AR Inquiries • Invoice reprint • Order hold/release • Credit limit changes Word • Letters • Internal collaboration Paper • Aging reports • Statements • Notes (?) • Ticklers (?) • Deduction folders Excel • Account analysis • Internal collaboration • Deductions(?) Internet • POD’s • Banking information • Customer web sites Fax Machines • Collaboration Imaging Systems • Documentation Network Drives • Store customer information Credit • eRam, etc. Others

8. Structural Inefficiencies

9. Streamline Workflows

10. Key Features Delivered • Segregate aging to improve decision making • Streamline order hold/release processing • Optimize in-bound credit checking logic • Prioritize collections/deductions activities • Rules based collections to maximize cash flow • Automated customer touches via letter engine • Improve collector efficiency • Track, manage and control deductions • Integrate AR process with key stakeholders • Deliver new reports • New controls drive performance • Customer, collector and company • Cash flow forecasting

11. Success Stories • Napa Auto Parts • 20% DSO reduction yielding 7 figure annual benefit • Ashley Furniture • Sales grew from 860 million to $3.5 billion while AR headcount was reduced by 20% • Club Car • Collection efficiency increased 32% yielding a first year $500K benefit • Ferrero Inc. (Tic Tacs, Nutella, Rocher) • In first six months, while sales increased 25%, DDO decreased by 20%, headcount by 25% • Typical customer sees a minimum DSO reduction of 10% in first year • ROI’s measured in months

12. Success Drivers • Technical • Designed for Mapics IFM and AM Financials • Real-time integration • Extension file-based • Multi-currency and language • Localization • No risk project • No ERP system changes required • All Cforia functionality is incremental • Few IT resources required to implement and maintain • Loads in a few hours • Trained and running in under 3 days

13. Quote to Cash Business Process Sales Cycle Enter Order Ship/ Invoice Order ReceivePayment Charge-Backs Order Entry Acct MC2Credit MC2Collections MC2Deductions • Cash Based CRM • Sales Rep Management • Sales Cycle Collaboration • Order Hold and Credit Limit Mgmt. • Credit Risk Analysis • Credit Scoring • Sales Rep Portal • Customer Self Service • Rules Engine • Invoice auto-fax • Tickler system • E-mail • Letter Auto-Fax • Dispute Mgmt • Accountability • Rules Engine • Deduction tracking and aging • Credit Memo auto-fax • Tickler system • E-mail • Letter Auto-Fax • Dispute Management • Dispute Accountability • Collaboration Portal Total Control

14. Enterprise Collaboration Portals Customers • MS2:Customer Portal • All AR inquiries • Reprints • Exports • Payments (3rd party) On-Line • MR2: Sales Rep Portal • All AR inquiries • Reprints • Collaboration • MD2-Web: Portal • Deduction inquiries • Attachments/notes • Collaboration • MC2-PM: Portal • Job management • Collaboration • Automation On-Line On-Line On-Line AR Specialist Collaborator Sales • MC2/MD2 • Management • Tool • Work queues • Workflow • Notes • Disputes • Credit limits • Deductions • AR Inquires • Letters • Exports • Collaboration Project Mgrs.

15. Reporting & Dashboard

16. Cforia’s AR Breakdown for clean and dirty receivables

17. Breakdown aging in many ways

18. Drill Down Ability to analyze AR for each customer

19. Cash flow forecast exportable into Excel Excel by sales rep, collector, customer, parent or company

20. The Cforia Difference • Only vendor to provide real-time data access • We pioneered the order release functionality in the industry • Single interface for all credit, collections and deductions activities • Extremely easy to use • Very quick implementations • All development and support is on-shore • Customer intimacy and customizations

21. What our Customers are Saying “MC2 is the first tool I have ever seen that uses only our undisputed open A/R, and takes into consideration our customer's historical payment patterns to derive an overall cash receipt forecast.  The tool has improved my ability 10-fold to not only forecast our cash receipts activity, but also when to quickly identify variances from actual cash receipts.  MC2 represents a quantum leap forward for our company from both a collection and a cash management perspective.” – Steve Font, Corporate Director of Treasury, Turner Industries

22. Pamela BauerCforia Software 847-441-5404 pbauer@cforia.com