2003 iTM1 Midwest User Group Meeting March 28, 2003

2003 iTM1 Midwest User Group Meeting March 28, 2003

Chris IlacquaDir Product Management

Agenda

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

Summary

Company Overview – (NASDAQ:APLX)

• 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

Representative list of customers

Examples of Over 200 Analytics Deals in 2002

•Air France•Fuji Photo Film•Fujitsu•CBS Television City•Visa International•World Bank•People’s Bank

Generated 30% year-over-year increase in analytics revenue

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

Evolution of Business Intelligence (BI) to Corporate Performance Management (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.

BIBI BPMBPM

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

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

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

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.

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

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

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

Integra: Object-based BPM Development Environment

• Structured development environment

• Built on TM1 views (ease of maintenance…can 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)

Integra Object Management

Integra XML Support

Object definitions saved as XML

Can use 3rd party version control

Can generate/process XML (wireless, voice, text messaging)

Integra Personalization

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 company’s unique business processes

Layered on the Applix Integra platform

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

Service Analytics Benefits

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

GoalsGoals Return on InvestmentReturn on Investment

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

Applix Service Analytics

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

Applix Architecture

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

Overall Architecture

3rd PartyRDBMS

TM1MOLAP Engine

IntegraBusiness Process Automation Engine

WebClients

Network EnabledNative Windows Clients

COTSApplications

PartnerApplications

CustomApplications

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

TM1Memory Based Computation Engine

Turbo IntegratorProgrammatic Model Loading

ArchitectMeta Data Editor

ExcelClient

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 API’s

Extensible and adaptable by IT personnel via Developers studio

DevelopersStudio

ReportingEngine

FormEngine

WorkflowEngine

AlertingEngine

Web PortalIntegration Engine

Application ProgrammingInterfaces

TomCatServeLet

ExecBEA

WebLogicIIS

…J2EE

Demonstrations

Summary

Pure play analytical software company

Strong financials

Loyal & growing customer base

TM1 offers unique BI capabilities

Targeting BPM market through applications

Boss 2003

• Applix’s Annual North America User Conference

• May 13 – 15, 2003

• Westin Hotel, Providence, Rhode Island