Leading Global Provider of Supply Chain Management ... · This presentation may include statements that may constitute “forward-looking statements,”including estimates of future

© 2020 American Software | Proprietary & ConfidentialProprietary & Confidential

Leading Global Provider of Supply Chain Management Solutions

Allan DowCEO

July 2020

Vincent KlingesCFO

NASDAQ: AMSWA

© 2020 American Software | Proprietary & Confidential

Forward Looking Statements

This presentation may include statements that may constitute “forward-looking statements,” including estimates

of future business prospects or financial results and statements containing the words “believe,” “expect,” or

similar expressions. Any forward-looking statements herein are made pursuant to the safe harbor provision of the

Private Securities Litigation Reform Act of 1995. There are many factors that could cause actual results of

American Software to differ materially from those anticipated by forward-looking statements made herein. These

factors include continuing economic uncertainty, the timing and degree of business recovery, unpredictability and

the irregular pattern of future revenues, competitive pressures, delays and other risks associated with new

product development, the unpredictability of the effectiveness and duration of third-party marketing

agreements, undetected software errors, and risks associated with market acceptance of the Company’s products

and 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-K

and in its Quarterly Reports on Form 10-Q and other reports and documents subsequently filed with the Securities

and 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, GA

30305, (800) 726-2946 or (404) 264-5477. FAX: (404) 264-5206 INTERNET: www.amsoftware.com or E-mail:

[email protected].

2


Investment Highlights

Supply Chain

Software LeaderMulti-Brand Strategy

Innovative Technology SaaS Transition

Strong Financial Position Disciplined Capital Allocation

3


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 by

Vertically Oriented Solutions and Functional Depth

Multi-Brand Strategy Addresses Needs of Global 1000,

Enterprise and SMB Companies

Proven Results and Track Record of Innovation

5


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.

6


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-average

satisfaction with the level of business

benefits achieved.”Tim Payne, Research Vice President

S&OP Magic Quadrant, May 2019

7


Digital Supply Chain Platform & Industry Verticals

SCM Customer Base

Apparel and Footwear

12%

Food and

Beverage

14%

Other

Consumer

Goods

16%

TotalConsumerProducts42%

Life Sciences

6%

Service/Aftermarket

6%

Chemical/Process

10%

Wholesale

Distribution9%

Retail

13%

Durable Goods

14%

8


Diversified Customer Base

Consumer GoodsSoftgoods/

Apparel

Durable Goods/

Service Parts Retail Life Sciences Process/Chemical

9


Forces Redefining Supply Chain and Business Planning

Global Market

Dynamics

Speed &

Agility

Cloud Computing Talent Wars

Digital Natives

Convergence of

Planning & ExecutionReal-time Insights

Digital Twin ResiliencyAnalytics Imperative

10

© 2020 American Software | Proprietary & Confidential Copyright © 2018. American Software

Automation through Artificial Intelligence

THE 10X JOURNEY

Data Management Strategy

Organize for Agility

11


Powering the Digital Supply Chain from Concept to Customer

12


Supply Chain Digital Twin for Continuous Planning


Automating Planning and Decision Support

General

InformationUse of historical data

(sales, production, etc.)

Specific

Information

Statistical Forecasting

Advisory

Guidance

Automated Alerts (Planning Systems, Production Equipment)

Opt-In

Automation

Try Multiple Forecasting Models and recommend the best fit

Automation

that can be

Over-ridden

Automatic Reorder Points for Replenishment

Non-optional

Automation

Take responsibility for this

task and don’t let me or

anyone else interfere

Source: Gartner 201714


Our TransformationFROM SOFTWARE TO SERVICE PROVIDER

15


Investing for the Future as of 1/31/20

32 + 26%Staff Growth

5 Years past / 3 Years Ahead

$80+70MGross R&D Investment5 Years past / 3 Years Ahead

$28MAcquisition

InvestmentsOver 8 Years

18Consistent

Years of

Profitability

$96MCash &

Investments

ZERO Debt1,000+

CustomersIn Over 80 Countries

$3B+Revenue to

Date

16


Our BrandPROMISE

A partner to help transform our

customers businesses with our

industry expertise and solutions to

realize value within the first 6

months and start an innovation

journey that delivers a digital

decision support platform to

MAKE OUR CUSTOMERS MORE

SUCCESSFUL YEAR AFTER YEAR.

17


Financial Summary

NASDAQ: AMSWA


Revenue Contributions

Revenue by Segment ($MMs)

19

81%

17%2%

Supply Chain Management IT Solutions ERP

21.5 22.1 21.5 21.2 22.3 23.5 25.6

23.6

5.4 5.2 4.9 4.5 4.4

4.2

4.5 5.0

0.6 0.7 0.6 0.6

0.7 0.6

0.5 0.7 27.4 28.0

27.0 26.3 27.4 28.2

30.6 29.3

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

ERP

TPM

SCM

Three Business Segments


Transition to the Cloud

20

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

Total 2.9 3.1 3.3 3.8 4.0 4.4 4.9 6.1 7.7 9.9 10.9 12.7 13.2 14.5 16.1 17.3 20.2 22.4 25.5 26.4

% of Revenue 3% 3% 3% 3% 4% 4% 5% 6% 7% 9% 9% 11% 12% 13% 15% 16% 18% 20% 21% 23%

$17.3

$26.4

0%

5%

10%

15%

20%

25%

$0

$5

$10

$15

$20

$25

$30

US$

Cloud Services Annual Contract Value (ACV) in $MMs

+53%Y-o-Y


Rising Mix of Recurring Revenue

Quarterly Revenue in $MMs

21

11.5 11.8 11.8 11.7 12.4 12.9 13.8 13.5 14.7 15.0 15.1 14.7 15.5 16.3 16.6 16.7

15.9 14.6 14.9 14.7 15.4 14.8

18.6 17.8

12.7 13.1 11.9 11.6

11.9 11.9

14.0 12.6

27.4 26.4 26.7 26.4

27.8 27.7

32.4 31.4

27.4 28.0

27.0 26.3

27.4 28.2

30.6

29.3

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

Non Recurring

Recurring


Growing Subscription Revenue Stream

Subscription & Maintenance Revenue in $MMs

22

10.6 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 10.8 10.4

0.9 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 5.8 6.3

11.5 11.8 11.8 11.7

12.4 12.9

13.8 13.5

14.7 15.0 15.1

14.7

15.5

16.3 16.6 16.7

42% 45% 45% 44% 46% 49% 46% 46%54% 53% 56% 56% 56% 58%

54% 57%


Subscription

Maintenance

% of revenue


Gross Margin Expansion

Gross Profit in $MMs Non-GAAP Subscription Gross Margin*

*Non-GAAP subscription gross profit and gross margin excludes amortization of capitalized software

23

9.3 9.4 9.4 8.9 9.2 9.0 9.0 8.7

2.1 2.1 2.3 1.8

2.3 2.9 3.8

3.5

2.3 3.2 2.3

3.5 3.1

3.3

4.7

3.8 13.8

14.7 14.0 14.3 14.6

15.2

17.4

15.9

50.2%52.3% 52.0%

54.4% 53.4% 53.8%

57.0%

54.3%

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

Maintenance Gross Profit Subscription Gross Profit

License & Services Gross Profit Gross margin

2.3 2.3

2.7

2.3

3.1

4.0

4.3 4.5

73.6%70.2%

72.5%

60.6%

69.5%

73.5% 73.9%71.6%

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

Non-GAAP Subscription Gross Profit Non-GAAP Subscription Gross Margin


Sustained Profitability Amidst Cloud Transition

Adjusted EBITDA in $MMs

24

3.4

2.7

4.8 4.7

5.3

5.0

6.1

4.5

2.8

3.9

4.6

3.5 3.5 3.5

5.3

3.9

12.5%10.5%

18.1% 18.0%19.8% 19.1%

20.3%

15.5%

10.2%

13.8%

16.9%

13.3% 12.7% 12.5%

17.2%

13.3%


Adjusted EBITDA Adjusted EBITDA Margin


Improved Visibility from Backlog Growth

Remaining Performance Obligation (RPO) in $MMs

25

40 39 42 45 45 4550

46

14 1517

1827 30

3031

54 54

59 62

72 76

80 77

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20

Short-term RPO Long-term RPO

In Q4-2020

RPO grew 24% y/y

Short-term +2% y/y

Long-term +72% y/y


Current Valuation Metrics

26

AMSWA Stock Price at 7/10/20 15.69$

Market Capitalization (Fully Diluted) 512,871$

Enterprise Value (Fully Diluted) 418,195$

Cash and Investments per share at 4/30/20: 2.90$

Current Dividend Yield: 2.80%

Price/ Sales (TTM) 4.44

Price/ Book (TTM) 4.29

Enterprise Value/Revenue 4/30/20 (ttm): 3.62

Enterprise Value/ EBITDA 4/30/20(ttm): 29.55


NASDAQ: AMSWA

www.amsoftware.com

www.logility.com

www.demandsolutions.com

www.ngcsoftware.com

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Leading Global Provider of Supply Chain Management ... · This presentation may include statements that may constitute “forward-looking statements,”including estimates of future