2003 iTM1 Midwest User Group Meeting March 28, 2003

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2003 iTM1 Midwest User Group Meeting March 28,
2003

• Chris Ilacqua
• Dir Product Management

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Agenda

• Corporate Overview Strategy
• The Company
• The BI BPM Markets
• Our Products and Solutions
• Architecture
• Demonstrations
• Invitation to Boss May 2003
• Summary

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Company Overview (NASDAQAPLX)

• 2002 Revenue of 36M(70 Analytics)
• Founded in 1983
• 140 Employees
• Strong financial position
• Over 1,600 customers
• Over 200 New Customers in 2002
• Customers are passionate about TM1
• Global reach
• Worldwide partnerships

Applix Office
Applix Distributor
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Representative list of customers
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Examples of Over 200 Analytics Deals in 2002

• Air France
• Fuji Photo Film
• Fujitsu
• CBS Television City
• Visa International
• World Bank
• Peoples Bank

• Mercedes Benz Accessories
• Nautica
• Nippon Chemical Industrial
• Phillips Electronics
• U.S. Department of Defense
• Walt Disney International
• Zurich Financial Services

Generated 30 year-over-year increase in
analytics revenue
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Evolution of Business Intelligence (BI) to
Corporate Performance Management (BPM)
BI
BPM

• Reactive - Historical Orientation, What
  Happened
• Time Delayed Analysis happens after the fact
  using aggregated and detailed data.
• Back Room Small number of power users.
• Stand alone Disparate little integration with
  operational systems or among various systems or
  among various BPM systems.

• Proactive Predictive future orientation
  including planning and modeling in addition to
  reactive.
• Real Time analysis and alerts of detailed data
  while event is occurring in addition to time
  delayed.
• Analysis Everywhere analysis is extended to a
  much wider user base.
• In-line, Unified Analysis systems closely
  coupled with operational systems and each other
  so that each informs the other.

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Applix BPM definition

• Corporate Performance Management (BPM) is the
  continuous management and monitoring of
  Financial, Operational, Customer and
  Organizational performance across the enterprise

• BPM solutions have the following capabilities to
  facilitate the proactive steering of business
  direction
• Monitoring of Key Performance Indicators
• Continuous and real-time review and refinement
• Interactive decision making
• Deployment across all levels of the enterprise

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Product Portfolio

• Platforms
• TM1 - OLAP Engine
• Integra BPM Development Environment
• Applications
• Applix Interactive Planning Planning, budgeting
  forecasting
• Applix Service Analytics Analytics for CRM
  service data

Note Applix Confidential Information subject
Nondisclosure agreement
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Applix Product Strengths

• Performance
• Fastest load times
• Fastest recalcs
• Best multi-user write-back
• What-if capabilities
• Best Excel add-in
• Ease of deployment
• Sophisticated modeling
• Fully integrated, enterprise-wide workflow
  collaboration
• Multiple languages, currencies, global support

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Applix TM1 DifferentiatorsPer Independent OLAP
Survey

• Fastest rollout time 82 of sites implemented
  within 6 months
• Best performance 12x faster than Essbase, 8x
  over Oracle
• Most loyal customers 75 of our customers will
  buy more
• 1 in ease of use A reason 67 of our
  customers bought iTM1
• Quickest proof of concept A reason 50 of our
  customers bought iTM1
• Quickest data load/builds 12x faster than
  Essbase and Microstrategy
• Per The OLAP Survey, an independent survey
  authored by renowned OLAP expert Nigel Pendse,
  which documents 644 OLAP users responses
  worldwide.

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Product Releases

• Recent Releases
• Applix Integra 1.0/TM1 8.0 July, 2002
• Applix Interactive Planning October, 2002
• Applix Service Analytics December, 2002
• Applix Integra 1.2/TM1 8.1 January, 2003

Note Applix Confidential Information subject
Nondisclosure agreement
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A Short History of TM/1

• First Release 1984
• Hypersparsity - 1987
• Client / Server 1989
• Cube Rules 1992
• Stargate Optimization - 1996
• Object Orientated Interface / Multithreading -
  1998
• Turbo Integrator (ETL) / In-Spreadsheet Browser -
  2000
• Server 8.0 / Integra - 2002

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TM1 New Features in Version 8
Server Administration Dynamic Subset
Views Engine Overhaul New Dimension Editor Rules
Tracer Deferred Updates Drill Through ETL
Improvements Security Revamp 64 bit Miscellaneous
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Integra Object-based BPM Development Environment

• Structured development environment
• Built on TM1 views (ease of maintenancecan
  change view structure in iTM1 Architect without
  rebuilding web form)
• Reusable objects across across multiple
  applications and dashboards (build once use many
  times)
• Higher level objects that allow users to assemble
  business data models. (Rapid development)

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Integra Object Management
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Integra XML Support

• Object definitions saved as XML
• Can use 3rd party version control
• Can generate/process XML (wireless, voice, text
  messaging)

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Integra Personalization
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Applix Interactive Planning

• Capabilities Planning and budgeting application
  that enables any Global 2000 company company to
  plan, analyze, and adapt their strategic goals
  and objectives
• Benefits Improved predictability and
  heightened business performance management.
• Features Unifies financial targets and plans
  with real-time collaboration, business workflow
  management, enterprise-wide deployment, including
  dynamic reporting and analysis, business process
  management and data entry, and the flexibility to
  reflect a companys unique business processes
• Layered on the Applix Integra platform

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Applix Interactive Planning(based on TM1
Integra)

• A solution for enterprise-wide, continuous
  planning
• Real-time, collaborative planning
• Top-down target setting
• Allocations
• Forecasting
• Bottom-up planning
• Business workflow management
• Notification and alerts
• Process automation
• View into the process
• User-driven configuration

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Service Analytics Benefits
Goals
Return on Investment

• Call Center Operational KPIs
• Number New and Closed Calls
• Calls Per Rep
• Average Time to Call Closure
• Closed on first Call
• Call Movement
• Group to Group
• Rep to Rep
• Profitability KPIs
• Average Cost per Call
• Customer Profitability
• Service Level Agreement (SLA) performance
• Rate of Maintenance Contract Renewals

• Reduced Call Volume
• Find and fix source of calls
• Increased Efficiency
• Focus on profitable customers
• Headcount reduction
• Better call routing
• Greater Customer Satisfaction
• Customer retention
• Maintenance renewals

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Applix Service Analytics(based on TM1 Integra)

• Open Call Analysis
• Closed Call Analysis
• Call Movement Tracking
• Service Contracts Monitor
• Service Contracts Actuals
• Top 10 Active Accounts
• Rep Productivity Review
• Call Volume Trends
• Call Spot Rate

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Applix Service Analytics

• Predictive modeling adjusts call-center headcount
  based on trends and what-if analysis

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Applix Architecture
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Development ObjectivesMaximize value Avoid the
hype

• Provide low cost of entry and immediate ROI
• Provide support for ad hoc queries, reports
• Provide support for ad hoc modeling and analysis
• Support growth to enterprise scale
• Support industry standards
• Provide COTS applications

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Overall Architecture
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TM1 MOLAP Architecture

• Patented memory based technology
• Optimized for fast loading
• Optimized for ad hoc queries
• Easily handles high dimensionality and sparse
  data
• Efficient multi-user write-back
• Scales from laptop to data-center
• Supports synchronization and replication

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Integra Process Automation Engine Architecture

• Simple procedural workflow
• Tight integration to Oracle and SQL server
• Time, calendar and event based alerting
• Work group enabled
• Portal enabled
• Integration APIs
• Extensible and adaptable by IT personnel via
  Developers studio

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Demonstrations
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Summary
Pure play analytical software company Strong
financials Loyal growing customer base TM1
offers unique BI capabilities Targeting BPM
market through applications
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Boss 2003

• Applixs Annual North America User Conference
• May 13 15, 2003
• Westin Hotel, Providence, Rhode Island