Transform Your Finance Operation to Thrive in Uncertain Times

© Copyright NetSuite Inc., All Rights Reserved.

Your Host:
Stuart Rauch
Director, Product Marketing NetSuite Inc.

Panelists:
James Jones
Director, Financial Planning & Analysis KANA Software

Rob Hull
CFO and Founder Adaptive Planning

© Copyright NetSuite Inc., All Rights Reserved.

Agenda
Welcome and Introduction to NetSuite and SaaS Adaptive Planning: Budgeting, Forecasting & Reporting in Uncertain Times Adaptive Planning Demo KANA Software Success Story NetSuite and Adaptive Planning Demo by KANA Q&A
© Copyright NetSuite Inc., All Rights Reserved.

NetSuite Background
Founded 1998 Publicly traded on NYSE: “N” Strategy:

Deliver integrated business applications as online services

Results:
– Largest integrated, on-demand customer base (6000+ customers) – Offices in 8 countries (US, Canada, UK, Japan, Hong Kong, Singapore, Philippines, Australia)
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The Largest Provider of Fully-Integrated SaaS Suites
Annual Revenue

$160M $140M $120M $100M $80M $60M $40M
$17.7 $36.4 $67.2 $108.5

$152.5

2008 Revenue: $152.5M (40.5% increase YOY) Q4 08 Revenue: $41.4M (30.5% increase YOY) $123.6 Million in Cash Over 1.3 Million Unique Log-Ins
Q4 2008 Financial Results press release dated 2/10/09 contains GAAP to non-GAAP reconciliation and is available on NetSuite website.
© Copyright NetSuite Inc., All Rights Reserved.

$20M
$1.1

$3.1

$8.3

$0M 2001 2002 2003 2004 2005 2006 2007 2008

5

Three Big Ideas

Suite

SaaS

Verticals

NetSuite: The Enterprise-Class Application for the Mid-market
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6

The Typical On-Premise Way
PSA/PPM Web

SFA

Accounting

Excel
Support
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The NetSuite Way: One System
Customers

CEO

CFO
Accounting/ Financials Shipping Inventory Purchasing
SINGLE DATA REPOSITORY

Project Mgr

Payroll Sales Force Automation Marketing Campaigns

Sales Rep /Manager

Web Store

E-commerce Manager

Web Site Customer Portal Vendor Portal

Order Management Partner Relationships Customer Support

Support Manager

Vendors

Partners
© Copyright NetSuite Inc., All Rights Reserved.

8

Software-As-A-Service
On-Premise Style: Manage It Yourself
HARDWARE DESKTOP OS SERVER OS DATABASE APPLICATION HARDWARE DESKTOP OS SERVER OS DATABASE APPLICATION License HARDWARE License DESKTOP OS License SERVER OS License DATABASE License APPLICATION License License License License License Maintain Maintain Maintain Maintain Back-up License License License License License Maintain Maintain Maintain Maintain Back-up Patch Patch Patch Tune Upgrade Maintain Maintain Maintain Maintain Back-up Patch Patch Patch Tune Upgrade Replace Replace Replace Upgrade Migrate Patch Patch Patch Tune Upgrade Replace Replace Replace Upgrade Migrate Replace Replace Replace Upgrade Migrate

ERP

One System

SaaS Style

HARDWARE

Ecommerce

CRM

DESKTOP OS

SERVER OS

DATABASE

APPLICATION Subscribe

© Copyright NetSuite Inc., All Rights Reserved.

McKinsey Says 40% Better TCO
Total Cost of Ownership, $ thousand

Software on Premises Implementation, deployment Customization, integration Basic Infrastructure testing, deployment Application infrastructure testing, deployment Ongoing operations Training Mainagement, customization of business process change Data center facilities rental, operations, security, compliance, monitoring of incident resolution Software User licenses, subscriptions, maintenance Other Unscheduled downtime Unused licenses Total Costs (including those not shown here) 308 92 480 101 94 750 108 54 30

Software as a Service 72 0 0

34 0 0

1,500

0 0

2,298

1,640
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Sample deployment of CRM software (200-seat license) The McKinsey Quarterly, Delivering Software as a Service 6/2007

The Benefits of Real-Time Data
Customizable Dashboards
– All data comes from one place – Real-time insight into the most important metrics and data

Visibility into cash flow
– Review cash flow projections – Make adjustments based on expectations of sales, collections, expenses

Managers can track performance against metrics – in real time

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LOCAL
Currency Forecast Orders Taxation Partners Language Website Project Management
REGION GLOBAL

GLOBAL
Consolidation Sales Revenue Dashboards Currency Management Compliance
COUNTRY

Quota

Control Many Websites

12 Languages, 170 Currencies

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Worldwide SaaS Market Growth 2007-2012
28.00% 26.00% 24.00% 22.00%

26.8%

18.5%
20.00%

CAGR

18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00%

11.9%

7.6%

On-Premise ERP

SaaS ERP

On-Premise CRM

SaaS CRM
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Source: IDC and Gartner

The Fortune 5,000,000
NetSuite has over 6,600 active customers in a wide variety of industries

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14

Budgeting, Forecasting & Reporting in Uncertain Times

Rob Hull Founder & CFO Adaptive Planning

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Adaptive Planning Overview
Background
Founded By a CFO in 2003 Founded By a CFO in 2003 Alternative to Both Excel and Alternative to Both Excel and Complex Enterprise Software Complex Enterprise Software First True SaaS Offering First True SaaS Offering

Category Leader
The leading SaaS Vendor The leading SaaS Vendor Free Software & Training Free Software & Training First Online Community First Online Community Only Open Source Offering Only Open Source Offering

Industry Awards
Cool Vendor in Performance Management 2009 Core Vendor 2009 Hot Company 2008 Best Newcomer

Rapid Customer Adoption
425 188

Growth

750

Best for Upgrading Your Spreadsheets

Best BI or KM Solution

Best Business Software Solution

2008 Emerging Vendor

64
2006 2007 2008 2009E

~10,000 users
16 Not For Distribution – Private and Confidential to Adaptive Planning and Client

> 85 Countries

Planning is Essential in a Recession
The CFO’s Role in Navigating the Downturn
CFOs need to replace traditional budgeting and planning with a more aggressive crisisplanning mode focused on cash. They should prepare scenarios based on different economic assumptions and risks, such as the sudden unavailability of funding or bankruptcies of major customers or suppliers. And they must develop contingency plans in case the scenarios come to pass. Survival is not a certainty.
“The CFO’s Role in Navigating the Downturn,” The McKinsey Quarterly, December 2008

Current Uncertainty Current Uncertainty
How would you characterize the current level of economic uncertainty facing your business?
Low Medium High Very High 23% 5% 33% 39% Don’t Know No Yes

Impact on Planning Impact on Planning
Will the uncertain economic environment cause you to re-plan, re-forecast, and perform what-if analyses more frequently in the next quarter?
14% 15% 71%

Source: BPM Forum / Adaptive Planning poll of finance professionals, February 2009
17 Not For Distribution – Private and Confidential to Adaptive Planning and Client

Current Solutions Miss the Mark

Low End Tools Spreadsheets Manual Error-Prone Can’t Scale

Optimized for Mid-Market Optimized for Mid-Market Simple, Affordable Simple, Affordable and Fast and Fast Free Test Drive Programs Free Test Drive Programs

Enterprise Solutions Expensive Slow to Implement Complex Risky

18

Not For Distribution – Private and Confidential to Adaptive Planning and Client

Innovative Solution
Budgeting & Forecasting Budgeting & Forecasting
Collaborative Modeling Spreadsheet-Like Interface Organizational Roll-Up P&L, Balance Sheet, Cash Flow Unlimited Versions

Reporting & Analysis Reporting & Analysis
Drag & Drop Report Builder Actual, Budget, Forecast Multi-Dimensional Reporting “What-If?” Analyses Customizable Dashboards

Collaboration & Community Collaboration & Community
Discussion Groups, Online Docs, Attachments, Project Mgmt. Alignment, Agility, Accountability Best Practices & Peer Connections
19 Not For Distribution – Private and Confidential to Adaptive Planning and Client

The Unfair Advantage of SaaS
Transforming the Industry
“The rise of the cloud is more than just another platform shift that gets geeks excited. It will profoundly change the way people work and companies operate.” - The Economist “… in the midst of a profound shift from client-server to cloud computing. The economics are truly compelling, with cost advantages of 3-5X for business apps.” - Merrill Lynch SaaS is now commonplace and having a very real impact on IT. Users should not wait but should explore cloud and SaaS opportunities from new vendors. - Gartner

Adaptive Planning Benefits
Cost Cost As Little As $600 / Year Eliminate IT Costs Ease Of Use Ease Of Use 30 Min. Training for Users 4 Hours for Administrators
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Deployment Speed Deployment Speed 12 Days on Average Easy to Self-Implement Accountability Accountability Renewal-Based Model 99.9% Uptime

Transparency Transparency Pricing, Uptime, Training & Support All Online Innovation Innovation 3 Product Releases per Year “Live & Breathe Innovation”

Not For Distribution – Private and Confidential to Adaptive Planning and Client

Excellent Fit for Companies of All Sizes
Software / Software / Services Services Manufacturing Manufacturing Healthcare Healthcare Non-Profit Non-Profit

Retail Retail

Other Other

Financial Financial Services Services

Communications Communications

21

Not For Distribution – Private and Confidential to Adaptive Planning and Client

NetSuite & Adaptive Planning

Historical Perspective

+ =

Future Forecasting & Scenarios

Complete Business Insight Complete Business Insight

What have we achieved historically? What are we planning to achieve in the future? How well are we executing against our plans? What if …?
22 Not For Distribution – Private and Confidential to Adaptive Planning and Client

Demonstration

Financial forecasting is crucial, and even more so when times are tough You need visibility and the ability to evaluate scenarios quickly Adaptive Planning gives you the tools you need:
– – – – – Scenario analysis: What if sales are 20% lower? What if I cut 5% of staff? Comparative reporting: budget vs. forecast, scenario comparisons Rolling actuals, forecasts: 9 months actuals from Netsuite, 3 months forecast Complete, integrated financial statements: quickly assess future cash impact Driver-based analysis: build calculations based on key business drivers

Let’s look at this within the application…

23

Not For Distribution – Private and Confidential to Adaptive Planning and Client

Case Study
James Jones
Director, Financial Planning & Analysis KANA Software, Inc.

Service Done Right. Customers for Life™ Service Done Right. Customers for Life™

NetSuite & Adaptive Planning Journey

Background Selection Process Implementation Impact

25

KANA Software
Who we are
• Recognized leader and top-10 global provider of customer service applications • World HQ in Silicon Valley • 229 employees

Whom we serve

• 250 customers; 800+ deployments • Global 1000 co’s with millions of customers, billions of interactions • Companies with a relentless focus on customer retention & loyalty

What we provide

• Today: eService & Knowledge Management solutions • Tomorrow: End-to-End Service Experience Management solutions

Strategic Partner

Why NetSuite and Adaptive Planning
Application Architecture
NetSuite Workday
HRIS SFA/CRM ERP Professional Services

Objectives
Replace various legacy systems (i.e., SFA, ERP/Financials, CRM, Expense Reporting, PSA) with a single, integrated system Eliminate manual processing and offline spreadsheets Improve data quality Implement SOX compliant controls Improve business processes

Adaptive Planning
BPM

Marketing

Employee DB Customer DB Product DB

27

Selection Process
Challenges

“According to both PricewaterhouseCoopers and KPMG, more than 90 per cent of corporate spreadsheets have material errors in them.“ “Errors, to be dangerous, must have a great deal of truth mingled with them. It is only from this alliance that they can ever obtain an extensive circulation. “
28

Selection Process
Selection Committees

Jay Jones, KANA CAO

Michael Fields, KANA CEO Mike Shannahan, KANA CFO

29

Selection Process
Value Drivers
Subscription pricing Low total cost of ownership Ease of configuration, use and maintenance Features and functionality versus price and complexity

30

Implementation
Implementation Critical Success Factors
• Followed standard software development lifecycle procedures Sept 2007 NetSuite USA • Used in-house configuration and project management expertise • Worked with NetSuite Services for training and coaching

• Implemented NetSuite One World NetSuite International • Increased focus on interactive design, prototyping and testing • Increased reliance on in-house resources and experts

• Completed complex merging of processes and object model NetSuite Subsidiary • Worked with Navigant Consulting and Demand Solutions Group • Increased focus on change management

• Used Quick Start consulting services Adaptive Planning • Used in-house resources for design, configuration, and deployment • Worked to document while configuring and modifying

31

Implementation
Implementation Critical Success Factors
• Followed standard software development lifecycle procedures Sept 2007 NetSuite USA • Used in-house configuration and project management expertise • Worked with NetSuite Services for training and coaching

• Implemented NetSuite OneWorld Jan 2008 NetSuite International • Increased focus on iterative design, prototyping and testing • Increased reliance on in-house resources and experts

• Completed complex merging of processes and object model NetSuite Subsidiary • Worked with Navigant Consulting and Demand Solutions Group • Increased focus on change management

• Used Quick Start consulting services Adaptive Planning Sept 2008 • Used in-house resources for design, configuration, and deployment • Worked to document while configuring and modifying

32

Implementation
Implementation Critical Success Factors
• Followed standard software development lifecycle procedures Sept 2007 NetSuite USA • Used in-house configuration and project management expertise • Worked with NetSuite Services for training and coaching

• Implemented NetSuite OneWorld Jan 2008 NetSuite International • Increased focus on iterative design, prototyping and testing • Increased reliance on in-house resources and experts

• Completed complex merging of processes and object model July 2008 NetSuite Subsidiary • Partnered with Navigant Consulting and Demand Solutions Group • Increased focus on change management

• Used Quick Start consulting services Adaptive Planning Sept 2008 • Used in-house resources for design, configuration, and deployment • Worked to document while configuring and modifying

33

Implementation
Implementation Critical Success Factors
• Followed standard software development lifecycle procedures Sept 2007 NetSuite USA • Used in-house configuration and project management expertise • Worked with NetSuite Services for training and coaching

• Implemented NetSuite OneWorld Jan 2008 NetSuite International • Increased focus on iterative design, prototyping and testing • Increased reliance on in-house resources and experts

• Completed complex merging of processes and object model July 2008 NetSuite Subsidiary • Partnered with Navigant Consulting and Demand Solutions Group • Increased focus on change management

• Used Quick Start consulting services Sept 2008 Adaptive Planning • Used in-house resources for design, configuration, and deployment • Business responsible for ongoing maintenance and support

34

Impact

Increased business agility Advanced analytics Continuous improvement

Rapid and frequent planning Detailed modeling Increased collaboration

Integration
Strategy, planning, and execution linkage Scenario analysis and transaction level validation Ability to continuously monitor performance

Managing the Business in a Downturn
Uploading the budget from Adaptive Planning to NetSuite enables: – Scenario planning by senior executives – More accurate and detailed cash flow forecasting – Dramatic increase in the focus on and accuracy of variance analysis – Monthly rather than quarterly review of departmental variances – Improved reporting to key management stakeholders and board of directors Based on access to key financial data and analysis, processes can be adjusted to meet business realities

Questions & Answers
© Copyright NetSuite Inc., All Rights Reserved.

Contact Information

Stuart Rauch
Director, Product Marketing NetSuite Inc. srauch@netsuite.com

James Jones
Director, Financial Planning & Analysis KANA Software jamesjones@kana.com

Rob Hull
CFO and Founder Adaptive Planning RHull@adaptiveplanning.com

© Copyright NetSuite Inc., All Rights Reserved.

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