Leading Global Provider of Supply Chain Management ...€¦ · Leading Global Provider of Supply Chain Management Solutions Allan Dow President November 2019. ... and Retail Optimization

© 2019 American Software | Proprietary & ConfidentialProprietary & Confidential

Leading Global Provider of Supply Chain Management Solutions

Allan DowPresident

November 2019

Vincent KlingesChief Financial Officer

NASDAQ: AMSWA

© 2019 American Software | Proprietary & Confidential

Forward Looking Statements

This presentation may include statements that may constitute “forward-looking statements,” including estimatesof future business prospects or financial results and statements containing the words “believe,” “expect,” orsimilar expressions. Any forward-looking statements herein are made pursuant to the safe harbor provision of thePrivate Securities Litigation Reform Act of 1995. There are many factors that could cause actual results ofAmerican Software to differ materially from those anticipated by forward-looking statements made herein. Thesefactors include continuing economic uncertainty, the timing and degree of business recovery, unpredictability andthe irregular pattern of future revenues, competitive pressures, delays and other risks associated with newproduct development, the unpredictability of the effectiveness and duration of third-party marketingagreements, undetected software errors, and risks associated with market acceptance of the Company’s productsand services as well as a number of other risk factors that could affect the future performance of the Company.Please refer to a discussion of these factors and others in the Company's most recent Annual Report on Form 10-Kand in its Quarterly Reports on Form 10-Q and other reports and documents subsequently filed with the Securitiesand Exchange Commission. For more information about risks the Company could face as well as other information,contact Vincent C. Klinges, Chief Financial Officer, American Software, Inc., 470 East Paces Ferry Rd., Atlanta, GA30305, (800) 726-2946 or (404) 264-5477. FAX: (404) 264-5206 INTERNET: www.amsoftware.com or E-mail:[email protected].


Investment Highlights

Supply Chain Software Leader

Multi-Brand Strategy

Innovative Technology SaaS Transition

Strong Financial Position Disciplined Capital Allocation


Company Overview

NASDAQ: AMSWA


Supply Chain Software Overview

48+ Years as a Best-of-Breed Provider of Supply Chain and Retail Optimization Solutions

1,000+ Customers in over 80 Countries Attracted byVertically Oriented Solutions and Functional Depth

Multi-Brand Strategy Addresses Needs of Global 1000, Enterprise and SMB Companies

Proven Results and Track Record of Innovation


Supply Chain Management Growth

Market Forecast 2016 to 2022

The Supply Chain Management (SCM) market will exceed $15 billion in total software revenue by 2019 and reach nearly $20 billion by 2022.

This represents a CAGR of 9.7% through 2022.


Logility: 2019 Gartner S&OP Magic Quadrant

“Logility has a good understanding of the direction of the S&OP market. Its vision for a digital supply chain twin, the use of continuous planning and advanced analytics/AI is above average.”

“[Logility’s] reference customers reported above-average overall satisfaction levels with a strong likelihood to select Logility again. They also reported above-averagesatisfaction with the level of business benefits achieved.”

Tim Payne, Research Vice PresidentS&OP Magic Quadrant, May 2019


Digital Supply Chain Platform & Industry Verticals

SCM Customer Base

Apparel and Footwear

12%

Food andBeverage

14%

OtherConsumerGoods

16%

TotalConsumerProducts42%

Life Sciences6%

Service/Aftermarket

6%

Chemical/Process10%

WholesaleDistribution 9%

Retail

13%

Durable Goods

14%


Diversified Customer Base

Consumer Goods Softgoods/ Apparel

Durable Goods/ Service Parts Retail Life Sciences Process/Chemical


Digital Transformation: Connecting the Dots from Product Concept to Customer Delight


Forces Redefining Supply Chain and Business Planning

Cloud, Data Streams and

Analytics

Social Media Global MarketDynamics

Talent Speed & Agility

© 2019 American Software | Proprietary & Confidential Copyright © 2018. American Software

Automation through Artificial Intelligence

THE 10X JOURNEY

Data Management Strategy

Organize for Agility


A Platform For Network Orchestration

Supply Chain VisibilityCollaboration, Workflow, Exception Alerts & Notification

Product Life Cycle Sourcing & Compliance

Supply Chain Planning Retail Planning Supply Chain

Execution• Line Plans• Tech Packs and Data

Management• Product Design• Costing• Sample Management

• Spending Analysis• Strategic Sourcing• Supply Base

Management• Supply Profiles and

Score Cards• Vendor Onboarding• CSR and GMP Audits• Compliance Packets

• Demand Planning• Inventory Optimization• Production and

Distribution Planning• Sales and Operations

Planning and Integrated Business Planning

• Service Parts Planning• Supply Chain Digital

Twin• Advanced Analytics/

Performance Mgmt

• Merchandise Planning• Channel Projections• Assortment Planning• Size & Pack

Optimization• Allocation

Replenishment

• Distributed Order Management

• Warehouse Management System

• Transportation Management System

• Global Trade Management

• Quality Management & Audits

• Regulatory Document Management


Powering the Digital Supply Chain from Concept to Customer

© 2019 American Software | Proprietary & ConfidentialProprietary & Confidential© 2017 Logility, Inc.

© 2019 Logility | Proprietary & Confidential

ARTIFICIALINTELLIGENCEAutomate the RoutineFocus Human Talents on Strategic Initiatives

AUTOMATION THROUGH ARTIFICIAL INTELLIGENCE



The Autonomous Supply Chain of the Future

“Within 5-10 years, the supply chain function may be obsolete, replaced by a smoothly

running, self-regulating utility that optimally manages end-to-end work flows and requires

very little human intervention.”Harvard Business Review

Allan Lyall, Pierre Mercier, & Stefan GstettnerJune 15, 2018

AUTOMATION THROUGH ARTIFICIAL INTELLIGENCE


Supply Chain Digital Twin for Continuous Planning


Automating Planning and Decision Support

GeneralInformation

Use of historical data (sales, production, etc.)

SpecificInformation

Statistical Forecasting

AdvisoryGuidance

Automated Alerts (Planning Systems, Production Equipment)

Opt-InAutomation

Try Multiple Forecasting Models and recommend the best fit

Automation that can be Over-ridden

Automatic Reorder Points for Replenishment

Non-optionalAutomation

Take responsibility for this task and don’t let me or anyone else interfere

Source: Gartner 2017



Digital Supply Chain

Humans Excel at:Common SenseGeneralizationCreativityDilemmasSubjective ActionAbstraction

Cognitive SystemsExcel at:

Locating KnowledgeMachine Learning

Algorithmic PlanningEliminating Bias

Understands:Structured and

Unstructured Data and Confidence levels

Reasons:Collaborative,

Directed Activity and Natural Language

Learns:Learning Through Applied Science and Feedback

ORGANIZE FOR AGILITY


Financial Summary

NASDAQ: AMSWA


Revenue Contributions ($000’s)

81%

17%

2%

Three Business Segments

Supply Chain Management IT Solutions ERP

Trailing 12 months 10/31/19 (Q2’FY20):

Logility SCM $88,559

IT Solutions $17,964

ERP $ 2,344

Total $108,867


Transition to Cloud Revenue


Recurring Revenue

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20

$10.7 $10.7 $10.5 $10.8 $10.8 $11.2 $10.9 $11.5 $11.6 $11.4 $10.8 $11.0 $10.8

$1.1 $1.1 $1.2 $1.6 $2.0$2.6 $2.6

$3.2 $3.3 $3.7 $3.8 $4.5 $5.5$11.8 $11.8 $11.7 $12.4 $12.9$13.8 $13.5 $14.7 $15.0 $15.1 $14.7 $15.5 $16.345%

45%

44%

46% 49%46% 46%

54% 53%56% 56% 56%

58%

Maintenance Subscription Fees % of Total Revenue


Adjusted EBITDA and Margin

$2.7

$4.8 $4.9$5.3

$5.0

$6.1

$4.5

$2.8

$3.9

$4.6

$3.5 $3.5 $3.5

10%

18% 19%20% 19%

20%

15%

10%

14%

17%

13% 13% 13%

0%

5%

10%

15%

20%

25%

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

$7.0

2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20


Revenue and Earnings: Last 5 Years


Revenue and Earnings: Last 5 Quarters

$0

$5

$10

$15

$20

$25

$30

$35

2Q19 3Q19 4Q19 1Q20 2Q20

22 21 21 22 23

5 5 4 4 4

1 1 1 1 1

$28 $27 $26 $27 $28

SCM TPM ERP

Revenue by Business

$0.0

$4.0

$8.0

$12.0

$16.0

2Q19 3Q19 4Q19 1Q20 2Q20

$15 $14 $14 $15 $15

52% 52%54% 53%

54%

Gross Profit & Margin

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

2Q19 3Q19 4Q19 1Q20 2Q20

$1.5$2.1

$1.0$0.8 $0.8

5%

8%

4%

3% 3%

Operating Profit and Margin

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

2Q19 3Q19 4Q19 1Q20 2Q20

12 11 11 11 111110 10 10

11

3 4 4 45

2 2 2 21

$28 $27 $26 $27 $28

Revenue by Type

Maintenance Services & Other Subscription Fees License Fees


Current Valuation Metrics

AMSWA Stock Price at 11/22/19: 15.93$ Market Capitalization (Fully Diluted) 514,702$ Enterprise Value (Fully Diluted) 420,031$ Cash and Investments per share at 10/31/19: 2.93$ Current Dividend Yield: 2.76%Trailing P/E Ratio 71.16Price/ Sales (TTM) 4.73Price/ Book (TTM) 4.37Enterprise Value/Revenue 10/31/19 (ttm): 3.86Enterprise Value/ EBITDA 10/31/19(ttm): 31.77


NASDAQ: AMSWA

www.amsoftware.comwww.logility.com

www.demandsolutions.comwww.ngcsoftware.com

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Leading Global Provider of Supply Chain Management ...€¦ · Leading Global Provider of Supply Chain Management Solutions Allan Dow President November 2019. ... and Retail Optimization