› Originally founded in 1978 as an IBM software provider in
Canada
› Sold in 1985, became JDA Software, developing inventory management software
› Grown organically and through acquisitions to become a leading provider of supply chain management software
(SCM)
› More than 6,000 customer companies worldwide
› Based out of Scottsdale, AZ

› Software: On-premise, Managed Service, Hosted (SaaS)
› Services: Supplemental to Software

› Provides supply chain management software to primarily enterprise businesses:
– Planning & Optimization Solutions (planning)
› Demand management, transportation planning, allocation & replenishment
– Transaction Systems (management)
› Merchandise operations systems (pricing/inventory management), store systems, transportation management

› Offer services in order to maximize usability of software
› Maintenance Services
– Customer support (phone, email, error diagnosis)
› Consulting Services
– Implementation and integration
› Education Services
– Training programs for software
› Cloud Services
– Integration, error diagnosis, everything cloud (transition)

› Supply Chain Management Software (SCM). Industry categories:
– Supply chain planning
› Modeling
– Supply chain execution
› Management (real time) of planned execution
– Supply chain sourcing
› Optimal suppliers; Procurement
– Service parts planning
› Multi-Echelon supply chains; dynamic manufacturing (i2)

Market Shares 2011: $7.7 Billion SCM Market
19.9%
51.7%
16.9%
SAP
Oracle
JDA Software
Ariba
Manhattan Associates
Others
1.8%
4.7%
5.0%
2010-2011: 12.3% Growth
2012-2015: 9% CAGR
Project 2015 Market Size: $10.9B

› Globalization
– Complex coordination of multiple product parts in multiple continents, countries, languages, currencies, etc.
› Multi-Channel Retail
– Pressure to offer seamless cross-channel retail experience
– “Showrooming”
› 2016: 44% of all retail buy decision will be effected by internet access

› Oracle
› SAP
› Manhattan Associates
› RedPrairie Software

Total Revenues
Growth
Software Sale Revenues
Growth
Net Income
Growth
EBITDA
Growth
Free Cash Flow (CFO-Capex)
Growth
2009
390,968
2.5%
95,662
27,575
-
7243.8%
82,732
-
85,595
-
2010
593,742
51.9%
112,633
17.7%
2,141
-92.2%
79,605
-3.8%
44,880
-47.6%
2011
691,243
16.4%
156,980
39.4%
82,688
3762.1%
183,166
130.1%
90,387
101.4%

› JDA Software has hit recent road bumps (financials), but is operating under a clear plan:
– I2 Technologies acquisition
– Revenue Model Transformation
– 3 year systems investment plan

› Acquired in January 2010 for $600M, $275M from issuing
8% senior notes
› 400 new customers
› Advanced global logistics: multi-leg shipments
– Discrete manufacturing

› Beginning 2012
› Company wide initiative to change current customer’s strategies; sell SaaS to new customers
› Compensation incentives
› IDC on SaaS: $40.5B by 2014; CAGR of 25.3%

› Sales process review and optimization
› Implement a new CRM systems
› Implement a new HR system: support leadership training
– (leadership replacements)
› Upgrading financial and contract management system
› TC= $20M

› November 1 st , Definitive merger agreement
› $45 per share, $1.9B: a 16% premium to JDA’s all time high and 33% premium to JDA’s October 26 th close
› Tender offer commenced November 15 th
– Expiration: December 14 th , 11:59 pm ECT, unless extended or terminated
– Minimum condition: 79% of shares outstanding
– “Top-Up” option to ensure majority vote (90%)

› Transition from on-premise to subscription
› Maintenance services and consulting services remain strong
Revenue Model
($ in thousands)
Software Licenses
% Growth Sequential
% Growth Y/Y
% of Total Revenue
Subscriptions & Recurring Revenues
% Growth Sequential
% Growth Y/Y
% of Total Revenue
Maintenance Services
% Growth Sequential
% Growth Y/Y
% of Total Revenue
Total Product Revenues
% Growth Sequential
% Growth Y/Y
% of Total Revenue
Consulting Services
% Growth Sequential
% Growth Y/Y
% of Total Revenue
Reimbursed Expenses
% Growth Sequential
% Growth Y/Y
% of Total Revenue
Total Service Revenues
% Growth Sequential
% Growth Y/Y
% of Total Revenue
Total Revenue
% Growth Sequential
% Growth Y/Y
2009A
91,789
23.5%
3,873
1.0%
179,256
2010A
91,490
-0.3%
15.4%
21,143
445.9%
3.6%
245,777
37.1%
45.8% 41.4%
274,918 358,410
70.3%
105,990
27.1%
10,060
30.4%
60.4%
215,470
103.3%
36.3%
19,862
2.6%
97.4%
3.3%
116,050 235,332
102.8%
29.7% 39.6%
390,968 593,742
2.5%
2.5%
51.9%
51.9%
2011A
140,217
53.3%
20.3%
16,763
-20.7%
2.4%
265,785
8.1%
38.5%
422,765
18.0%
61.2%
245,046
13.7%
35.5%
23,432
18.0%
3.4%
268,478
14.1%
38.8%
691,243
16.4%
16.4%
Q1 Q2 Q3 Q4
03/31/2012A 06/30/2012A 09/30/2012A 12/31/2012E
25,393
-35.9%
-28.8%
15.7%
32,040
26.2%
6.0%
19.0%
27,544
-14.0%
-20.7%
16.7%
39,912
44.9%
0.7%
21.6%
4,032
-3.6%
-19.3%
2.5%
66,713
-0.8%
3.0%
41.1%
96,138
-13.4%
3,754
-6.9%
-2.5%
2.2%
66,815
0.2%
1.0%
39.6%
102,609
6.7%
3,909
4.1%
4.6%
2.4%
68,784
2.9%
1.7%
41.8%
100,237
-2.3%
2012E
124,889
-10.9%
18.4%
16,218 4,523
15.7%
8.2%
2.5%
69,241
-3.3%
2.4%
271,553
0.7%
3.0% 2.2%
37.5% 39.9%
113,676 412,660
13.4%
-8.8%
59.3%
60,489
-10.9%
5.4%
37.3%
5,559
-9.9%
17.8%
3.4%
66,048
-10.8%
6.4%
40.7%
162,186
161.2%
-3.2%
2.4%
60.8%
60,273
-0.4%
2.5%
35.7%
5,875
5.7%
-9.8%
3.5%
66,148
0.2%
1.3%
39.2%
168,757
4.1%
2.0%
-5.5%
60.9%
59,090
-2.0%
-3.1%
35.9%
5,193
-11.6%
-13.9%
3.2%
64,283
-2.8%
-4.1%
39.1%
164,520
-2.5%
-5.0%
2.4%
61.6%
64,902
9.8%
-4.4%
35.2%
5,912
13.8%
-4.1%
3.2%
70,814 267,293
10.2%
-4.4% -0.4%
38.4%
-2.4%
60.7%
244,754
-0.1%
36.0%
22,539
-3.8%
3.3%
39.3%
184,490 679,953
12.1%
-0.3% -1.6%
Q1 Q2 Q3 Q4
03/31/2013E 06/30/2013E 09/30/2013E 12/31/2013E
28,415
-28.8%
11.9%
16.7%
34,686
22.1%
8.3%
19.2%
36,425
5.0%
32.2%
19.7%
44,211
21.4%
10.8%
21.9%
4,851
7.3%
20.3%
2.8%
69,212
0.0%
3.7%
40.6%
102,478
-9.9%
5,092
5.0%
35.6%
2.8%
70,111
1.3%
4.9%
38.9%
109,889
7.2%
5,303
4.1%
35.7%
2.9%
70,541
0.6%
2.6%
38.2%
112,269
2.2%
2013E
143,737
2014E
155,412
2015E
166,289
2016E
177,364
15.1%
19.5%
20,885
8.1%
19.6%
27,378
7.0%
19.4%
38,645
6.7%
19.0%
54,327 5,639
6.3%
24.7%
2.8%
73,313
28.8%
2.8%
283,177
31.1%
3.5%
293,962
41.2%
4.5%
305,525
40.6%
5.8%
318,645
3.9%
5.9% 4.3% 3.8% 3.9% 4.3%
36.2% 38.4% 37.1% 35.7% 34.2%
123,163 447,799 476,752 510,459 550,336
9.7%
6.6%
60.1%
61,988
-4.5%
2.5%
36.4%
5,930
0.3%
6.7%
3.5%
67,918
-4.1%
2.8%
39.9%
170,396
-7.6%
5.1%
7.1%
60.9%
64,569
4.2%
7.1%
35.8%
5,922
-0.1%
0.8%
3.3%
70,491
3.8%
6.6%
39.1%
180,380
5.9%
6.9%
12.0%
60.8%
66,289
2.7%
12.2%
35.9%
5,946
0.4%
14.5%
3.2%
72,235
2.5%
12.4%
39.2%
184,504
2.3%
12.1%
8.3%
60.9%
73,201
10.4%
12.8%
36.2%
5,952
0.1%
0.7%
2.9%
8.5%
60.7%
266,047
8.7%
36.1%
23,750
6.5%
60.2%
291,681
9.6%
36.8%
24,056
7.1%
59.7%
320,629
9.9%
37.5%
24,312
7.8%
59.1%
355,854
11.0%
38.2%
24,981
2017E
190,641
7.5%
18.8%
75,643
39.2%
7.5%
331,605
4.1%
32.7%
597,889
8.6%
59.0%
389,512
9.5%
38.4%
25,684
2.8%
2.5%
79,153 289,797 315,737 344,941 380,835
9.6%
11.8% 8.4% 9.0% 9.2% 10.4%
415,196
9.0%
39.1% 39.3% 39.8% 40.3% 40.9% 41.0%
202,316 737,596 792,489 855,400 931,171 1,013,085
9.7%
9.7%
5.4%
3.2%
8.5%
1.3%
3.0%
7.4%
1.1%
2.8%
7.9%
2.8%
2.7%
8.9% 8.8%

› Most projections done as % of revenue
› Accounts receivable and accounts payable projected based off historical efficiency ratios
– Days payable outstanding, days sales outstanding
Working Capital Model
($ in thousands)
Total Revenue
Current Assets
Cash and cash equivalents
% of Revenue
Restricted Cash - current portion
% of Revenue
Accounts Receivable
Days Sales Outstanding A/R recievables turnover
% of Revenue
Deferred tax assets - current portion
% of Revenue
Prepaid expenses and other current assets
% of Revenue
Total Current Assets
% of Revenue
Long Term Assets
Net PP&E Beginning
Capital Expenditures
Depreciation and Amortization
Net PP&E Ending
Total Current Assets & Net PP&E
% of Revenue
Current Liabilities
Accounts Payable
Days Payable Outstanding
% of Revenue
Accrued Expenses and Other Liabilities
% of Revenue
Deferred Revenue - Current Portion
% of Revenue
Total Current Liabilities
% of Revenue
2010A
593,742
171,618
28.9%
34,126
5.7%
111,042
61
5.35
18.7%
50,816
8.6%
25,615
4.3%
393,217
66.2%
43,381
16,866
(12,800)
47,447
440,664
74.2%
21,092
30
3.6%
88,028
14.8%
115,904
19.5%
225,024
37.9%
2011A
691,243
Q1 Q2 Q3 Q4
03/31/2012A 06/30/2012A 09/30/2012A 12/31/2012E
162,186 168,757 164,520 184,490
2012E
679,953
Q1 Q2 Q3 Q4
03/31/2013E 06/30/2013E 09/30/2013E 12/31/2013E
170,396 180,380 184,504 202,316
2013E
737,596
337,382
208.0%
3,315
2.0%
131,953
73
1.23
81.4%
33,412
20.6%
27,117
16.7%
533,179
328.7%
52,541
3,000
(3,383)
52,158
585,337
360.9%
8,378
11
5.2%
76,226
47.0%
142,636
87.9%
227,240
140.1%
285,512
41.3%
8,733
1.3%
114,778
56
6.02
16.6%
32,063
4.6%
24,584
3.6%
465,670
67.4%
47,447
19,444
(14,350)
52,541
518,211
75.0%
7,740
10
1.1%
73,111
10.6%
108,217
15.7%
189,068
27.4%
408,284
248.2%
3,004
1.8%
96,814
53
1.70
58.8%
36,660
22.3%
26,723
16.2%
571,485
347.4%
52,831
8,875
(9,051)
52,655
624,140
379.4%
8,342
11
5.1%
80,760
49.1%
116,372
70.7%
205,474
124.9%
362,430
214.8%
3,314
2.0%
126,368
67
1.34
74.9%
36,540
21.7%
24,240
14.4%
552,892
327.6%
52,158
4,836
(4,163)
52,831
605,723
358.9%
10,375
14
6.1%
71,381
42.3%
140,284
83.1%
222,040
131.6%
382,621
56.3%
3,251
0.5%
121,351
64
5.60
17.8%
35,640
5.2%
29,504
4.3%
572,367
84.2%
52,541
22,392
(28,226)
46,707
619,074
91.0%
8,745
12
1.3%
82,545
12.1%
110,512
16.3%
201,802
29.7%
382,621
207.4%
3,251
1.8%
121,351
64
1.52
65.8%
35,640
19.3%
29,504
16.0%
572,367
310.2%
52,655
5,681
(11,629)
46,707
619,074
335.6%
8,745
12
4.7%
82,545
44.7%
110,512
59.9%
201,802
109.4%
407,894
226.1%
3,641
2.0%
143,557
63
1.26
79.6%
29,045
16.1%
30,564
16.9%
614,701
340.8%
45,952
6,280
(9,977)
42,255
656,956
364.2%
9,545
11
5.3%
74,608
41.4%
142,771
79.2%
226,924
125.8%
402,603
236.3%
3,561
2.1%
133,570
65
1.28
78.4%
32,604
19.1%
34,208
20.1%
606,546
356.0%
46,707
7,514
(8,269)
45,952
652,498
382.9%
9,121
16
5.4%
72,465
42.5%
145,883
85.6%
227,469
133.5%
432,501
213.8%
4,019
2.0%
140,521
65
1.44
69.5%
22,064
10.9%
30,251
15.0%
629,356
311.1%
39,784
8,154
(8,554)
39,384
668,740
330.5%
9,367
14
4.6%
88,545
43.8%
134,979
66.7%
232,891
115.1%
416,821
225.9%
3,687
2.0%
135,340
62
1.36
73.4%
26,405
14.3%
31,717
17.2%
613,970
332.8%
42,255
7,050
(9,521)
39,784
653,754
354.3%
10,635
12
5.8%
77,965
42.3%
134,564
72.9%
223,164
121.0%
2014E
792,489
461,502
58.2%
20,614
2.6%
132,605
62
5.98
16.7%
15,809
2.0%
36,949
4.7%
667,479
84.2%
39,384
35,617
(32,614)
42,387
709,866
89.6%
15,480
15
2.0%
96,777
12.2%
155,744
19.7%
268,001
33.8%
432,501
58.6%
4,019
0.5%
140,521
64
5.25
19.1%
22,064
3.0%
30,251
4.1%
629,356
85.3%
46,707
28,998
(36,321)
39,384
668,740
90.7%
9,367
13
1.3%
88,545
12.0%
134,979
18.3%
232,891
31.6%
2015E
855,400
2016E
931,171
462,228
49.6%
21,589
2.3%
140,244
64
6.64
15.1%
5,707
0.6%
36,666
3.9%
666,434
71.6%
45,108
33,505
(30,629)
47,984
714,418
76.7%
20,948
14
2.2%
95,606
10.3%
164,471
17.7%
281,025
30.2%
462,353
54.1%
21,807
2.5%
132,230
60
6.47
15.5%
10,647
1.2%
36,580
4.3%
663,617
77.6%
42,387
33,202
(30,481)
45,108
708,725
82.9%
17,930
13
2.1%
95,646
11.2%
159,505
18.6%
273,081
31.9%
2017E
1,013,085
490,559
48.4%
21,521
2.1%
145,131
65
6.98
14.3%
0
0.0%
37,954
3.7%
695,165
68.6%
47,984
28,645
(32,917)
43,712
738,877
72.9%
20,847
13
2.1%
103,255
10.2%
181,874
18.0%
305,976
30.2%

› COGS: % of revenue
› R&D: Historically 11-12% of revenue, projected the top of this range for 2013 due to final i2 integration
› S&M: Historically 14-16% of revenue, projected this going forward but slightly more aggressively in 2013 (top 250 marketing plan)
› G&A: Historically between 10-12% of revenue (except
2012- SEC investigation), projected to decrease due to
SaaS transition, more efficiently handling costs

› Amortization of intangibles: projected % of revenues going forward, slight decreases (no huge acquisitions)
› Restructuring charges: Projected slightly high (relative to historicals) due to 3 year investment plan through 2015
› Acquisition: Left room for a small acquisition
› Litigation settlement: Competitive advantage for JDA
Software, projected normalized, small amounts of income from litigation settlements

› 3 year optimal time frame: balance of long/short term
› Hamada: chosen to encompass industry behavior/risk while acknowledging JDA’s capital structure
5 Year Daily
5 Year Weekly
3 Year Daily
3 Year Weekly
1 Year Daily
3 Year Daily Hamada
JDA Software Beta
Beta
0.99
1.04
1.23
1.12
1.02
1.05
1.09
SD
0.04
Weighting
10%
0.09
0.07
0.15
0.15
-
0.08
10%
20%
20%
15%
25%

› 4% intermediate growth rate chosen to smooth cash flow growth; reflect more accurate FCF growth and growth decline
› 3% terminal growth to reflect projected economic growth into perpetuity

Tax Rate
Risk Free Rate
Beta
Market Risk Premium
% Equity
% Debt
Cost of Debt
CAPM
WACC
Discounted Free Cash Flow Assumptions
32.75% Terminal Growth Rate
1.75% Terminal Value
1.09 PV of Terminal Value
7.00% Sum of PV Free Cash Flows
84.23% Firm Value
15.77% Total Debt
8.00% Cash & Cash Equivalents (0% incl.)
9.37% Market Capitalization
8.74% Fully Diluted Shares
Implied Price
3.00%
3,196,707
1,354,517
874,548
2,229,065
273,484
362,430
1,955,581
43,095
$ 45.38
Pre-Acquisition Price
Undervalued
$ 33.92
33.78%
Considerations

› Comparability lies in product offering, industry risk, projected growth
› SAP (20%), Oracle (15%), Manhattan Associates (35%), Retalix (30%)

› Comparability lies in growth rates, sizes, capital structures, and geographical revenue spreads
› CA Technologies (25%), ValueClick (25%), SS&C Technology (25%),
Acuity Brands (25%)

› For both groups of comparables, I chose the following weights:
Metric
EV/Revenue
EV/Gross Profit
EV/EBIT
EV/EBITDA
EV/(EBITDA-Capex)
EV/Unlevered FCF
P/E
Weight
10%
10%
0%
10%
20%
50%
0%
› FCF proxies: cash generation representative of competitive offering
› Remaining 30% on metrics that represent ability to generate revenues and sustain healthy margins

Final Relative Valuation
Multiple
EV/Revenue
Weight
Final Multiple
EV/Gross Profit
Weight
Final Multiple
EV/EBIT
Weight
Final Multiple
EV/EBITDA
Weight
Final Multiple
EV/(EBITDA-Capex)
Weight
Final Multiple
EV/Levered FCF
Weight
Final Multiple
P/E
Weight
Final Multiple
Price Target
Pre-Acquisition Price
Undervalued
$39.80
65.0%
$38.89
65.0%
$47.98
65.0%
$27.73
65.0%
Industry
$42.47
65.0%
$43.69
65.0%
$30.86
65.0%
Fundamentals
$39.70
35.0%
$43.28
35.0%
$26.55
35.0%
$31.68
35.0%
$33.20
35.0%
$38.77
35.0%
$21.49
35.0%
Final Implied Price Final Weight
$41.50
$43.55
$29.35
$36.96
$36.90
$44.76
10.00%
10.00%
0.00%
10.00%
20.00%
50.00%
$25.55
$41.96
33.92
23.70%
0.00%

Final Price Target
Discounted Free Cash Flow
Comparable Analysis
Current Price
Final Price Target
Implied Price
$45.38
$41.96
Weight
50%
50%
$33.92
$43.67
Given JDA’s current acquisition situation, how relevant is this information?
What else can we look at to gain insights into JDA’s acquisition valuation?

› Four enterprise software acquisitions: look at relevant metrics that may give insights into fair valuation for the JDA acquisition…
› Weights
Product: SCM Software CRM Software HCM Software HCM Software
Acquired By: SAP Oracle IBM SAP
Price: $4.3B $1.5B $1.3B $3.4B

› Acquisition Price Premium
› Merger Arbitrage Spread
Comparable Acquisitions Analysis
(All Numbers in T housands)
Weight
Pricing
Pre-Acquisition Price
Acquisition Price
Buyout Spread
Post Buyout Minimum
Post Buyout Maximum
Midpoint
EV Calculations
Total Debt
Less Cash & Cash Equivalents
Net Debt
Diluted Shares Outstanding
Market Cap Pre Buyout
Market Cap Post Buyout
EV Pre Buyout
EV Post Buyout
Comparable Metrics
Acquisition Price Premium
Risk (Merger Arbitrage Spread)
Min Max Median Weighted Average
$ 26.25
$ 40.00
$ 37.64
$ 46.00
$ 34.18
$ 44.00
$ 33.98
$ 43.80
JDA Software (11/1/12)
$33.92
$45.00
Ariba (5/21/12)
40%
RightNow
Technologies (10/24/11)
20%
Kenexa (8/27/12)
20%
SuccessFactors (12/3/11)
20%
$37.64
$45.00
$35.96
$43.00
$32.39
$46.00
$26.25
$40.00
39.64
39.97
39.81
0
(362,430)
(248,331)
27,415.17
273,484
(82,758)
(55,247)
99,510.00
13,756
(221,431)
(148,119)
58,630.62
887,977
1,261,098
832,730
1,205,851
19.6%
0.251%
45.79
45.98
45.89
3,745,556
4,477,950
3,551,026
4,283,420
52.4%
0.490%
43.51
44.11
43.81
1,699,579
2,394,821
1,524,560
2,219,802
30.8%
0.433%
43.36
43.88
43.62
40,502
(199,371)
(158,869)
68,739.28
2,355,649
3,001,328
2,196,780
2,842,459
30.6%
0.413%
44.72
44.85
44.79
273,484
(362,430)
(88,946)
42,811
1,452,153
1,926,500
1,363,207
1,837,554
32.7%
0.480%
44.37
45.22
44.80
0
(194,530)
(194,530)
99,510
3,745,556
4,477,950
3,551,026
4,283,420
19.6%
0.458%
42.65
43.00
42.83
175,000
(276,707)
(101,707)
33,064
1,188,974
1,421,744
1,087,267
1,320,037
19.6%
0.409%
45.79
45.98
45.89
27,511
(82,758)
(55,247)
27,415
887,977
1,261,098
832,730
1,205,851
42.0%
0.251%
39.64
39.97
39.81
0
(248,331)
(248,331)
84,197
2,210,183
3,367,898
1,961,852
3,119,567
52.4%
0.490%

› Final valuation PT: $43.67, a 3% discount to acquisition price
› JDA’s comparable acquisition metrics are in line with comps
› Bloomberg: 60+ enterprise software acquisitions since 2002median multiple of 16x EV/EBITDA
– JDA Acquisition: 11x EV/EBITDA
– Growth Rates
› In conclusion, I believe the JDA acquisition is fairly valued at $45 per share, $1.9B

› Due to JDA Software’s RedPrairie acquisition, I am happy to be forced to recommend a sell
– Svigals return: 50.2%, should we sell in the tender offer
– Tall Firs return: 48.8% (sold for $44.72 on Friday Nov. 9 th )