your supply chain -enabling excellence · 2011-11-14 · your supply chain -enabling excellence...

Your Supply Chain - Enabling Excellence

Stephen McNultyPresident, Asia Pacific

9th Nov 20119 Nov 2011

Welcome attendees

JDA/i2 Update

Delivering Innovation

Good morning

早上好

おはようございます

Copyright 2011 JDA Software Group, Inc. - CONFIDENTIAL 2

E2E Supply Chain Vision

Purpose of Today’s Workshop

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안녕하십니까

Agenda

Welcome attendees

JDA/i2 Update





Forward Looking Statements

Forward-Looking Statements

Except for historical information, this presentation contains forward-looking statements which include words such as “believe”, “anticipate” and “expect.” These forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from those expressed or implied by these statements. Factors that may affect our results are summarized in our annual report on Form 10-K filed on March 1, 2011 as well as our subsequent quarterly reports on Form 10-Q. JDA assumes no obligation and does not intend


subsequent quarterly reports on Form 10-Q. JDA assumes no obligation and does not intend to update forward-looking statements made in this presentation.

Non-GAAP Information

A non-GAAP reconciliation of information and definitions of terms such as “Adjusted EBITDA”, “Adjusted Non-GAAP EPS”, and other non-GAAP financial measures contained in this presentation can be found in the appendix of this presentation.

JDA at a Glance – Executive Summary

Global Presence• 6,000+ customers in 80 countries

• 2,900+ associates in 38 offices

• Serving customers for 25+ years

EMEA

18%EMEA

18%

Americas

65%Americas

65%

Asia Pacific

17%Asia Pacific

17%


Financially Strong• NASDAQ: JDAS

• Annual Revenue: $617 million

• Recurring Revenue: $267 million

• 24 straight quarters of profitability

• 2010 – Record revenues during a sluggish economy

Total Revenue

$ 277 $ 374 $ 390

$ 386

$ 617

$ in millions

Mission

Enabling supply chain, merchandising and pricing excellence through


excellence through superior solutions and domain expertise that empower our customers to make optimal decisions that achieve real results

Enabling Winners• 86 of the top 100 consumer goods

manufacturers use JDA*

• 78 of the top 100 retailers use JDA**

• 36 of the top 50 Manufacturers use JDA***

“With its acquisition of i2, JDA is now

the leading solutions provider

focused on delivering world-class

software and services across the

19 of the Supply Chain 19 of the Supply Chain Top 25 use JDA SolutionsTop 25 use JDA Solutions

Commitment to Success

JDA is a Market Leader


software and services across the

global supply chain. JDA plus i2 is a

powerful combination.”

Bill Bryan, director of supply chain

and supply chain economics

The Timken Company

Every 12 hours a customer

goes live with a JDA solution****

4

* Top 100: The Consumer Goods Registry, 2010

** Top 100 Retailers, STORES, 2010

*** IndustryWeek 50 Best Manufacturing Companies 2010

**** JDA has an estimated 600 go lives each year

Commitment to Success• More than 6,000 customers have chosen

JDA to solve their unique supply chain challenges

• 97% customer satisfaction

JDA Expertise• Largest community of industry experts

• 3,000+ associates

• 9.75 years average tenure

• 216 patents, 165 pending

Today’s Supply Chain Challenges

LogisticsLogisticsMarketMarket DemandDemand SupplySupply


� Volatile rates

� Weak Infrastructures

� Service-level demands

� Regulatory requirements

� Capacity uncertainty

LogisticsLogistics� Consolidation

� Globalization

� Compressed cycles

� Product proliferation

� Sustainability and green

MarketMarket DemandDemand� Changing consumer behavior

� Achieving consumer insight

� Multiple views of demand

� Increased promotions

SupplySupply� Dynamic sourcing

� Complex networks

� Outsourcing

Break Through the Challenges with Supply Chain Innovation

�� One synchronized view of demandOne synchronized view of demand

�� ConsumerConsumer--driven assortments driven assortments

�� Pricing & promotion managementPricing & promotion management

�� EndEnd--toto--end supply chain planend supply chain planDemandDemandMarketMarket


�� EndEnd--toto--end supply chain planend supply chain plan

�� Transportation & logistics managementTransportation & logistics management

�� Integrated business management Integrated business management (S&OP)(S&OP)

�� Global visibility & collaborationGlobal visibility & collaboration

LogisticsLogisticsSupplySupply

Deliver the most complete, integrated suite of supply chain

planning and optimization solutions

JDA’s End-to-End Solution


ProductionMaterials Distribution Retail ConsumerShipping

“…JDA, with its domain expertise, its comprehensive and integrated portfolio of applications and continuous innovation, is helping them [manufacturers, wholesalers and retailers] increase sales, reduce inventory and improve asset utilization.”IDC, May 20, 2009

Agenda

Welcome attendees

JDA/i2 Update





Core Elements of the JDAStrategy

1. Innovation


2. Agility / Speed

3. Trusted Partnership

Demand Sensing

Promotion Optimization

Order Promising / ATP

JDA – A Company You Can Grow With The Supply Chain Roadmap

CPFRVMI

Category Management

Supplier Relationship Management

NetworkOptimization


Integrated Fleet Management

Shelf-Connected Supply Chain

Operational Strategic

S&OP

Advanced Analytics

Production Scheduling

Transportation Planning

Demand Planning

SupplyPlanning

PerformanceManagementLegacy System

Spreadsheets

InventoryOptimization

Trade FundsManagement

Flow Path Optimization

ManagementNetwork

Optimization

Our customers believe in our vision Financial snapshot as at Q3 2011

$60

$80

$100

$120

$140

$160

Q3 Q4 Q1 Q2 Q3

TTM1 Total Software Revenue2

($ in millions)

25 25

23

26

34

Large Deals3 (TTM1)


$(90)$(66) $(12)

$20 $54

Q3'10 Q4'10 Q1'11 Q2'11 Q3'11

Net Cash3

($ in millions)

2010 2011

Q3'10 Q4'10 Q1'11 Q2'11 Q3'11

Share Price

Q3 2011 Highlights

• Record quarterly revenue of $171.6 million– Software and subscription revenue increased 67% versus prior year

– Maintenance revenue increased 6% versus prior year with a 95.7% retention rate

– Solid performance in consulting services revenue

• Record earnings and margins


– Record Adjusted EBITDA of $51.1 million

– Record Adjusted EBITDA margin of 30%

– Record Adjusted non-GAAP EPS of $0.64

• Strong cash flow– Cash flow from operations of $38.5 million

– Free cash flow of $35.7 million

– $326.8 million cash balance; $53.7 million, net of debt

Agenda

Welcome attendees

JDA/i2 Update





Manufacturing

Supply Chain

Account Management & Planning

(Retail Supply Chain)

S&OP

Raw DemandReplenishment

Network, Sourcing and Inventory Optimization

The Shelf-Connected Supply Chain Integrates

the Retail & Manufacturing Supply Chains

From Shelf to Raw Materials

CollaborativeProductionPlanning &

Shelf AssortmentStore

Optimized Local Assortments

PlanogramPricing &

Promotional

Shelf-DrivenSupply Chain


Supplier Factory Manufacturer DC Retail DC Store

Raw MaterialPlanning

DemandPlanning

ReplenishmentPlanning

Order Promising, Inventory Deployment & Transportation

ShipmentsProduction Orders

ProcurementOrders Assortments POS

SalesDC

WithdrawalsCustomer

Orders

CollaborativePlanningPlanning &

Scheduling

Shelf Analytics

AssortmentManagement

StoreForecasting

PlanogramManagement

PromotionalPlanning

Supply Chain Plans &VMI

Orders

Connecting to the Shelf Means More Than

Leveraging POS for Analytics

Distribution Planning

ProductionPlanning

?


POS Analytics Do Not Provide Forward Visibility to:

• Assortments / Resets

• Promotions

• Replenishment Strategies

• Projected out-of-stocks

• Supply Chain Strategies

Resulting in the Bullwhip Effect

StoreRetail DCManufacturer DC

Industry Leaders Adopting the Shelf Connected Supply Chain

Largest Global Retailer Metric Before After

Instock ~90% ~99%

WOS 11 8

% lost sales 8% 2%


•>3-5% Customer Service Improvement•11-13% YOY inventory reduction•5-10% YOY improvement in forecast accuracy•Reduced lead times from 28 days to 7 days•Over 60% reduction in Past Due Back Orders•Over 60% reduction in planning cycle times•Over 80% reduction in financial estimate planning times

Agenda

Welcome attendees

JDA/i2 Update





What we have heard from our customers?

• “Supply Chains are no longer viewed as cost centers. The companies leading the industries view Supply Chain as Strategic areas of the organization”


organization”

• “Operational excellence is the paramount objective”

• “Cross-functional and cross-company processes are the most important.”

Purpose of the Workshop

• Learn, and Share

– Supply Chain Trends in Asia Pacific Markets

– Best Practices and Emerging Trends

• Network with Peers


• Network with Peers

Thank You

your supply chain -enabling excellence · 2011-11-14 · your supply chain -enabling excellence...

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