QAD Enterprise Applications 2008: The Enhanced Enterprise Financials edition

1. QAD Enterprise Applications 2008: The Enhanced Enterprise Financials edition MFG/PRO Gebruikersvereniging Optimaliseer uw financiële processen: 3 oktober 2007 René Bergkamp, QAD

2. Agenda • What is QAD 2008 • Enhanced Enterprise Financials • Quick preview • Enhancements other than Financials • Status QAD 2008 • Questions

3. Value Day QAD Enterprise Applications 2008 • Planned for December 4, 2007 • Location to be determined

4. 3 QAD Enterprise Applications 2008 • Formally known as MFG/PRO eB3 • Next step after moving to the Global Enterprise • Major Upgrade in MFG/PRO Financials: • Powerful • Efficient • Flexible • Global • Improve Internal Controls • Segregation of Duties and Access Control • Role based security • Tight integration of QAD Product Portfolio • Major Change in Internationalization Approach • Long list of new functionality in other areas

5. Usability: Focus on Human Engineering Enhanced Enterprise Financials New Customer Management Features New Capabilities in Distribution / Manufacturing Centralization / Standardization / Shared Services Single code base for Internationalization Internal Controls - Corporate Governance QAD Enterprise Applications 2008 Focus

6. QAD 2007 (eB2.1)Centralize and give power to the users Remote ERP Database Plant 4 Share Master Data Transactions (EMT/DRP) Consolidate

7. QAD 2008Global Financials and Financial Shared Services Remote ERP Database Plant 4 Share Master Data Transactions (EMT/DRP) Consolidate

8. Enhanced Enterprise Financials • Focus on efficiency and usability: • Based on Lean concepts • Corporate Management Reporting: • Multi-GAAP reporting • System wide Management Currency • Budgeting • Financial Shared Services • Allocation Module • Workflow • Document Management • New Service Oriented Architecture: • Tailor the system to your unique requirements

9. Management Information • More, faster and better: • Additional Management Currency(second “base” currency) • Report in Multiple Chart of Accounts • Multiple accounting layers allow for multi-GAAP reporting

10. QAD 2008 Multiple Base Currencies • Dual Base Currency: Transaction amounts always stored in transaction currency, base currency and company management currency For example: Customer invoices In GBP (transaction) In EUR (base) In USD (management) For example, a German company keeps its books in EUR, reports into a US mother company and receives an invoice from a UK supplier

11. Reporting

12. Layer SAF’s SAF’s SAF’s SAF’s SAF’s Intercompany key Up to 5 supplementary analysis fields on a posting line Open item key • can automatically retrieve SAF data from Operational transactions • Site • Product Line • Region (Customer) • Customer Type • Supplier Type • Item Type • Item Group GL Analytical coding segments Entity Yr/Pd Daybook Account Sub-Account Cost Center Project

13. Improved Productivity: Electronic Import of Bank Statements • Supports multiple formats

14. Workflow • Introduces Workflow for Financials

15. Document Management • Link scanned documents or any kind of file directly to any document in Financials

16. Financial Shared Services • Save costs and improve standardization using Financial Shared Services between Domains • Sharing of chart of accounts and other key master data • Workflow to move documents between roles • Link to document management, to store electronic version of paper documents such as invoices • Cross-company AR and AP Payments • Scan Daemon: • Automatic import of scanned documents • Routing of documents for data entry and approval

17. Budgeting • Better control of budgets because of extensive budgeting functionality • Supports multiple versions of budgets • Supports multi-levelbudgeting and actuals coming from multiple companies

18. Allocation Module • Distribute costs and revenues to appropriate accounts, sub-accounts, cost centers and projects • Supports recursive allocations • Reuse result of previous allocation run as input for the next • Validate results of allocation run before final posting

19. Complete Configurability of Screens • Add, Move and Delete fields • Change columns, sorting and layout for user, role or system

20. Easy Customization • Built in provisions: • Each table in Financials has 35 free user defined fields that can be added to any screen without requiring any customization • Special customization layer in the architecture • Easy connection to any in- or outside system using industry standard interfacing methods such as Web-services

21. XLS and XML Import / Export • Eg.: XLS for maintenance of COA, customers, suppliers, budgets • Eg.: XLS for transaction entry of journal entries • Eg.: XML for automated upload of exchange rates

22. Internal Controls / Compliance in QAD 2008 • New functionality to improve Internal Controls : • Segregation of Duties and Access Control • User Update Restrictions • Customer/Supplier Transaction Blocking • Credit Management Controls • Debit/Credit Separation in Subledgers • Integration of selected European Accounting functionality: • Correction Invoices • Several built-in provisions for easier compliance • Accounting periods control, closing procedures • Accounting layers • System controls • Auditing

23. Role Based User Interface/Security • Define Roles and Permissions • Segregation of Duties: • Define conflicting roles • User Interface depending on Role

24. User Conflicts • Role A • Access right • Access right • …. • Role B • Access right • Access right • …. Segregation of Duties • Objective • Limit the duties of individuals to certain areas of responsibility • Minimize the ability of any individual to misappropriate company property – without collusion between individuals • Specify roles that are conflicting from a segregation of duties perspective • Identify users that have any access rights that are part of conflicting roles

25. Internationalization Single Code Base Serve many global business Save Cost Support Shared Services

26. QAD 2008 Sneak Preview

27. Enhancements in QAD 2008 include: • Distribution • Item Replacement, Up-Sell, Cross-Sell • Memo type defaulting • Correction invoices • Customer / Supplier Transaction Blocking Item up-sell proposal during Sales Order Entry

28. Enhancements in QAD 2008 include: • Manufacturing • Product Change Control • Obsolete Inventory • Customer Services • Pending Calls • Installed Base Hierarchy • EDI Ecommerce • New document types in standard product Obsolete Inventory Analysis Report

29. Enhancements in QAD 2008 include: • Release Management (Scheduled Orders Mgt) • Required Ship Schedule Netting Logic • Calendars for Scheduling Customer Shipments • Subcontracting Visibility • Supplier Scheduling enhancements & controls • Trade Sales (PRO/PLUS) Replace product Lines wherever they are referenced

30. Enhancements in QAD 2008 include: • Miscellaneous • Product Line Realignment • User Update Restrictions • Record Viewers for customer, supplier, purchase order, sales order, RMA and work order • Support for Unicode

31. Status QAD 2008 • Early Adopter release available • GA release expected Q1/Q2 of 2008

32. Early Adopter customers

33. Early Adopter customers • Early Adopter customers in 3 regions • US (2) • EMEA (3) • APAC (1 - subsidiary) • Early Adopter customers in 3 verticals • Life Sciences (1) • Electronics (2) • Industrial (2)

34. Working on next round of implementations • Early Success program • 10 selected customers in EMEA, US and AP • One candidate in the Netherlands • Objectives: • Based on implementation experiences built up with early adopter presentations, quickly increase the number of QAD 2008 customers before announcing the product GA • Second round of training of QAD Services and partners, becoming ready for widespread implementation

35. Questions? Value Day December 4, 2007