QAD in AutomotiveMichael Silletti and John Miciuda, YFAI

Terry Onica and Kathy Angel, QAD

May 8, 2018

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Safe Harbor

This presentation includes forward-looking statements about QAD and its business. These statements are subject to risks and uncertainties that may cause actual results and events to differ materially. These risks and uncertainties are detailed in QAD’s SEC filings, including the company's latest Annual Report on Form 10-K dated April 13, 2018 and in particular the section titled “Risk Factors” therein and other periodic reports the company files with the Securities and Exchange Commission thereafter.

This presentation contains certain references to financial measures that have been adjusted to exclude certain expenses and other specified items. These financial measures differ from comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) in that they exclude unusual or non-recurring charges, losses, credits or gains. This presentation identifies the specific items excluded from the comparable GAAP financial measure in the calculation of each non-GAAP financial measure. Management believes that financial presentations excluding the impact of these items provide useful supplemental information that is important to a proper understanding of the Company’s business results by investors. These presentations should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures presented by other companies.

The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD.

QAD undertakes no obligation to update forward-looking statements.

Disclaimer

QAD in Automotive

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Introduction

QAD in Automotive

Michael SillettiDirector IT

Strategy

& ProcessYanfeng

Terry OnicaAutomotive

Director

QAD

3

Kathy AngelProgram

Manager

QAD

John MiciudaGlobal ERP

Manager

Yanfeng

4

Yanfeng’s story

- ERP selection process

- Global implementation

- Challenges

- Benefits

- Lessons learned

Panel discussion

Automotive sessions at Explore

Agenda

QAD in Automotive

A NEW WAY FORWARD:Yanfeng Automotive Interiors ERP Journey Michael Silletti

Director IT Strategy & Process

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• World leader in automotive interiors

- Door Panels, Instrument Panels & Cockpits, Floor & Overhead Consoles,

Decorative Trim & Lighting

• 30+ years in business

• $8.5 billion in revenue

• 33,000+ employees

• 110 manufacturing and technical centers in 20 countries

• Joint venture between Yanfeng & Adient

YANFENGAutomotive Interiors

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Divested

in 2015

from JCI

10x Personnel

with JCI

Large Annual

Support

High

Complexity

No Best

Practice Plants

OUR BIG ERP story

$

7

“Big companies

run a big ERP”

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• Big auto complexities immense

• No best practice for our requirements

• Only Big ERP has “Enterprise” financials

• Big ERP gets auto because of their size

• We can afford Big ERP

• Big ERP is largest ERP so we will succeed

• Going with Big ERP is lowest risk

ONLY ONE assumption is true

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• 25% of prior employees and budgets

• Simplification and standardization

critical

• Not that special. Business units may do

different things but use similar processes:

OUR REALITYpost divestiture

plan receive manufacture ship 10

COMPLEX

SLOW

COSTLY

CONFLICTS

WIIFM?

Difficult to change due to complex one size fits all

(which fits no one well) approach

Slow to implement while business changes, which

grows gap between design and go-live

Long implementations cost more

Implementation partners benefit when the project is

over time and budget

Users simply want to know ‘what’s in it for me?’

REALITIES OF choosing Big ERP

RISK Long projects create risk in a cyclic market like Auto

11

Slide - 12

A NEW WAYforward

Fit: Today

& TomorrowSpeed to Benefit

Lower Cost

Ecosystem12

“We wanted a single ERP vendor with

robust financials and shared services

that could be implemented rapidly,

and we have found that with QAD.”

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• Acquired plant migrated from SAP to QAD in 4 months

• Brownfield and greenfield sites going live in < 3 months

• Consistent, standardized “best practice” processes for 3 regions

• 6,000 customizations to < 100

• Rollout out 100+ sites in 2.5 years in progress

OUR QAD Story

• “All QAD”: Global Financials & Shared Services, Manufacturing,

EDI, Quality, Bar Coding & Scanning, Trade Compliance

• MES & PLM integration through Boomi AtomSphere

• Single instance North America & Europe

• Thousands of users

• Business plan to double in 3-5 years

• Limited capital and staff

RESULTS

SOLUTION

CHALLENGES

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• Leverage QAD automotive expertise

and best practices

• Global Business Process Workshops

• All QAD – One QAD

• Three C vetting for customizations

• Strong work stream business leads

• Staff augmentation approach

• State-of-the-art integration platform

with Dell Boomi

• Have the courage to standardize

LESSONS LEARNED

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Panel Discussion

QAD in Automotive

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Michael SillettiDirector IT Strategy

& Process

Yanfengmichael.silletti@yfai.com

Terry OnicaAutomotive Director

QAD

tjo@qad.com

Kathy AngelProgram Manager

QAD

kae@qad.com

John MiciudaGlobal ERP Manager

Yanfengjohn.miciuda@yfai.com

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Highlighted Sessions

QAD in Automotive

QAD Automation Solutions at

Adient - So Much More than

Barcoding & Scanning

Ramesh Akkala, Adient

Astrid Rommens, QAD

Tuesday, May 8, 3:00 PM – 4:00 PM

Dallas Ballroom B

Case Study: Caterpillar's

Journey to the Cloud - Key Decisions

Henry Laprun, Caterpillar

Brett Baumeister, QAD

Tuesday, May 8, 4:15 PM – 5:15 PM

Dallas Ballroom C

Case Study: IAC's QAD Cloud

ERP Story - From Greenfield Implementation to Global

Rollout

Scott Bennett and Prashant Arya, IAC

Adam Kacala, QADWednesday, May 9, 11:00 AM – 12:00 PM

Dallas Ballroom B

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Highlighted Sessions

QAD in Automotive

Case Study: Applying

Machine Learning to

Planning in the Automotive

Industry

David McCarthy, Adient

Etienne Ouvry and Terry Onica, QAD

Wednesday, May 9, 1:30 PM – 2:30 PM

Dallas Ballroom C

Streamline Customer and

Supplier Interactions with QAD Enterprise Application

Michael Silletti and John Miciuda, Yanfeng

Luc Janssen and Kelly Andrews, QAD

Wednesday, May 9, 3:00 PM – 4:00 PM

Dallas Ballroom A

Increase Productivity with

Production Orders and Automation Solutions

Henry Laprun, Caterpillar

Carianne Nieuwstraten and Brent Shooltz, QADWednesday, May 9, 4:15 AM – 5:15 PM

Dallas Ballroom B

www.qad.com©QAD Inc. 2018

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QAD in Automotive