Being connected to our Business

1. Being connected to our Business Presented by: Francine Barbe March 1st, 2007

2. Agenda • Company Background • Management Structure & Key Elements • Challenges in Our Environment • Pureshare’s Engagement • Initial Rollout of Dashboards • Benefits Achieved • Going forward plans • Summary

3. MKC Background • MKC is a global leader in dispatch technologies for Taxis and Para-transit • MKC offers advanced GPS, wireless and mobile data communications technology for computerized dispatch systems • Historically a public company, Mobile Knowledge’s roots stretch back 3 decades, underwent receivership and emerged as a privately held company

4. Management Levels • Two branches of mgmt used for oversight: • Mgmt Committees provide operational control • Executive Level governs strategic direction Different levels of Mgmt = Different requirements of information or views

5. Key Elements to Monitor • Fiscal health became the main focus affecting all processes of the company • Key measures to monitor: • Cash dictates every business decision made • Revenue provides an indicator of cash flow • Expenses matching level to Revenue • Margin Contribution also provides an indication of available cash

6. Challenges • Informed business decisions need timely accurate financial measures: • Time required to close Financial Cycles • Difficult to consolidate information from different areas of the business • Manual effort required to generate forecast with limited resources • Substantial errors (human errors & systems) without appropriate data controls • Significant amount of guess work involved Discounted Sales Forecast (always wrong) + Delayed Reporting of Financials = Unpredictable Cash Flows

7. PureShare Engagement • MKC engaged PureShare to address our needs for monitoring and understanding crucial elements within our business • Our main goals were to: • Provide views to various levels of management • Improve timeliness and accuracy of information • Eliminate manual effort required for reporting • Automate consolidation of data • Gain forward visibility and monitor progress as it happens

8. MKC Success Story • MKC achieved profitability within its first 3 years of operation post-receivership • Success was achieved through: • Acknowledging the importance of fiscal controls – focused on monitoring key elements • Introduction of new management processes and monitoring tools (i.e. PureShare ActiveMetrics) • More informed business decisions based on better access to forecasts and results Tighter Controls + Better Forecasts = Improved Results

9. The Initial Rollout • First objectives: Get accurate numbers, monitor progress against targets, and then give visibility throughout the organization • Sales Pipeline • More accurate predictions were needed and data quality issues had to be addressed • Revenue Forecast • Merge sales with orders, backlog and invoicing for a complete picture of revenue cycle • Actuals vs. Budget • Track expenses against budgetary targets

10. Sales Pipeline • Data Quality monitor used to correct errors • “Overall Pipeline reduced by one third!” • Constant tracking of Sales Performance • Ability to validate sales opportunities improved confidence in the numbers

11. MKC Revenue Forecast • Needed to merge data for many different sources: Pipeline, Orders, Backlog, Invoicing, andGeneral Ledger • Summary of results compared against Board-approved revenue targets

12. MKC Revenue Forecast • Provides executive view at a glance • Bring business into focus – provides early warning signs and mgmt level drill-downs • Automates the forecasting process • Removing guess work = Improved accuracy

13. Actuals vs. Budget • Merged actuals from GL with Budget • Gave visibility of expenses to management team in a timely manner • Pushed spending accountability to managers

14. Benefits of Increased Visibility • Forced MKC to review all processes • Changed behavior • Increased accuracy & predictability • Automation removed manual effort and reduced risks • Improved confidence of the Board in our Management team’s performance • Most importantly, freed the CFO to focus on managing the strategic side of the business

15. Other Metrics Areas • Sales Order Summary • Track progress on bookings • Provide an indicator on future cash inflow • Supply & Demand • Respond to client demand and manage expectations • Reduces dead inventory by preventing unnecessary buying while avoiding shortages

16. Going Forward • Revenue Segment Split • Provides an understanding of our markets and revenue movements • Serves as an indicator on how best to invest in our marketing activities • Future Development • Maintenance contracts forecasting • Profitability tracking • Margins distribution by product line • Cashflow management view • Pipeline churn • Financial ratios

17. Mobile Dashboard as a “Product” • MKC became a PureShare OEM and offer dashboards to our clients • Allows them to monitortheir fleet operationsand daily income

18. Summary • MKC is a prime example that corporate success is achievable with: • the right focus on what matters in decision making • the proper management structure and confidence from Board of Directors • the necessary tools to evaluate & monitor performance Visibility provides warning signs to actually make changes before it’s too late Best of all, the management team can spend more time on actually managing the business!