Advanced Planning - Vision

1. Advanced Planning - Vision August 27, 2014

2. Manage Product Lifecycle

3. Advanced Planning Base Functionality • Integration with Demand Forecasting • Optimized LY (cleansed history) • Statistical forecasting at any level of Merchandise / Location hierarchy • Flexibility to Plan PacSun, d.e.m.o. & Outlet in one system • Outlet stores by class/department • Varying inventory methods e.g FWOS, Turn • Different metrics by channel • Unlimited version management • Unlimited assortments • Regular assortments • Promotional events • Exception Management • Plan alerts • Advanced Exception Management • Minimal IT / systems admin support required • Grouping, seeding, reconciliation are dynamic • Planners can create plans • Dynamic measure and worksheet views

4. 1 2 3 4 5 1-15 Total Company Product Location Time Measures Versions 6 7 8 9 10 11 12 13 14 15 4 1 9 Unparalleled Flexibility for Version Management Plan Management and Grouping Traditional Approach: The master ‘cube’ Manhattan Associates‘ Approach: Customer driven cubes Benefit: Flexibility or • All planning uses one Merchandise Hierarchy • All categories in the company use same measures • User has to check in and check out plans • Plan any 'piece' of the cube separately • Supports unique requirements of each channel • No limit to number of plans or versions • ‘Group it your way’ • Consolidation managed through flexible grouping • Group by vendor, season etc

5. Unparalleled Flexibility to Seed a Plan Seeding • Seeding enables a user to take any version of any plan and move it to another plan or another version of same plan • Applies to Products, Locations, Time, Measures and Versions • Seeding can be used any time • Menu-driven and intuitive Different plan/different version 2007 Financial Plan (OP) 2006 Financial Plan (FC) Top Down / Bottom Up 2007 Bottom Up Plan 2007 Top Down Plan Copy and Paste in same plan BTS Assortment (WI) BTS Assortment (FC)

6. Easy to Use Intuitive User Interface • User controlled • ‘On the fly’ changing of view dimensions • Corporate vs. personal views • Multiple measure views • Nested data • Ability to lock cells • Assignment of notes to cells • Fast recalculations

7. Scalability & Performance Designed for Fast Response Times • Built-in controls to guarantee optimum response times • Saving data to the server is 'orders of magnitude' faster than traditional systems • Scalability to plan down to item level • Time phased planning by location group in production • 200+ measures • Simulator tool

8. Financial Planning • Use Optimized LY data from Demand Forecasting • Plan Corporate Strategic Plan down to each channel • Plan each channel according to its unique requirements / metrics • Top down to Department / Class • Bottom up from Department / Class • By store cluster or build separate location plans and reconcile • Group channel plans and reconcile to Corporate Strategic Plan • Determine target # styles and avg sales / style in Department / Class plans to drive Assortment Planning • Include # styles and avg sales / style in Department / Class plans • Forecast # styles in Demand Forecasting at Class / store level

9. Store Clustering • Use Optimized LY data from Demand Forecasting • Generate store clusters based on multiple factors e.g. performance, space, climate • For any level of merchandise, time • Support for unlimited store attributes • Model new stores on sister stores • Incorporate scientific algorithms

10. Assortment Planning • Define targets for assortment • Input from Financial Plan • Input attribute mix targets • Analyze best selling styles from prior assortments • Sub totals and mix by attribute e.g. vendor, color, silhouette • Build master assortment • Select / add / remove styles and style colors • Assign similar styles and style colors • Unlimited number of style attributes • Assortment specific attributes e.g. fixture, position, launch date • Sub total by attribute, filter, sort • Multiple views of attributes and plan data • Assign to stores • Manual assignment to store clusters • Optimized mapping of styles to locations • Reconcile to targets • Reconcile to Financial targets • Compare attribute mix to target e.g. Good / better / best

11. Item Planning • Multi dimensional plans • Time phased to calculate receipt flow • Multiple versions and measures • Plan by store cluster • By style or style color • Reconcile to Financial / Location group plans • Key item planning • Plan by vendor / source / attribute • Group plans to view totals • Links to Replenishment • Output initial size level plan data to Replenishment • Pull in on order, demand forecast • View SKU by store level data • Incorporate vendor leadtimes, service levels, minimums, packs • Links to Supply Chain • Incorporate supply chain costs into margin calculations e.g. shipping, airfreight, labor • Enhanced Gross Margin tracking

12. Promotion Planning Exceptions Thresholds Select Promo Type and Channel Analysis Determine Promotion Type Determine Promotion Assortment Generate Promotion Forecast • System Generated • Optimized LY • Base demand • Promo Lift • Configurable • In Store • Circular • Direct Accept Promotion Review Results • Promo Planning Meeting(s) • What –if planning • Promo Execution • Generate Orders • Store & DC Distribution Iteration

13. Size Profiling • Calculate forecast optimum size profile in Demand Forecasting • By style / store • By sub class / store • By style / cluster etc • Apply size profile to style colors in Assortment Plan • Use size profile to break down style color plans to size to feed Replenishment