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© 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].
© 2019 American Software | Proprietary & Confidential
Investment Highlights
Supply Chain Software Leader
Multi-Brand Strategy
Innovative Technology SaaS Transition
Strong Financial Position Disciplined Capital Allocation
© 2019 American Software | Proprietary & ConfidentialProprietary & Confidential
Company Overview
NASDAQ: AMSWA
© 2019 American Software | Proprietary & Confidential
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
© 2019 American Software | Proprietary & Confidential
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.
© 2019 American Software | Proprietary & Confidential
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
© 2019 American Software | Proprietary & Confidential
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%
© 2019 American Software | Proprietary & Confidential
Diversified Customer Base
Consumer Goods Softgoods/ Apparel
Durable Goods/ Service Parts Retail Life Sciences Process/Chemical
© 2019 American Software | Proprietary & Confidential
Digital Transformation: Connecting the Dots from Product Concept to Customer Delight
© 2019 American Software | Proprietary & Confidential
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
© 2019 American Software | Proprietary & Confidential
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
© 2019 American Software | Proprietary & Confidential
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
© 2019 American Software | Proprietary & ConfidentialProprietary & Confidential© 2017 Logility, Inc.
© 2019 Logility | Proprietary & Confidential
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
© 2019 American Software | Proprietary & Confidential
Supply Chain Digital Twin for Continuous Planning
© 2019 American Software | Proprietary & Confidential
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
© 2019 American Software | Proprietary & ConfidentialProprietary & Confidential© 2017 Logility, Inc.
© 2019 Logility | Proprietary & Confidential
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
© 2019 American Software | Proprietary & ConfidentialProprietary & Confidential
Financial Summary
NASDAQ: AMSWA
© 2019 American Software | Proprietary & Confidential
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
© 2019 American Software | Proprietary & Confidential
Transition to Cloud Revenue
© 2019 American Software | Proprietary & Confidential
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
© 2019 American Software | Proprietary & Confidential
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
© 2019 American Software | Proprietary & Confidential
Revenue and Earnings: Last 5 Years
© 2019 American Software | Proprietary & Confidential
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 $28
Revenue by Type
Maintenance Services & Other Subscription Fees License Fees
© 2019 American Software | Proprietary & Confidential
Current Valuation Metrics
AMSWA Stock Price at 11/22/19: 15.93$ 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
© 2019 American Software | Proprietary & ConfidentialProprietary & Confidential
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