Strategy Briefing of Blue Yonder
May 10, 2023

Panasonic Connect Co., Ltd.
Yasuyuki Higuchi

Copyright © 2023 Blue Yonder Group, Inc.

Business Transition of Blue Yonder
Accelerating transformation for scalability as SaaS business
1985
EstablishedEstablished as
SCM software business• On-premise based offerings• Expanded the product line-up
and customer base throughM&A• Strong competitiveness insoftware ability and E2EcoverageSep 2021

Jul 2022

Acquired byPanasonicAppointment ofNew CEOTransition toSaaS provider••Lack of investments on a long-term
strategy
Change of management after theacquisitionToday

Build a foundation forfurther growth• Formed the strong
management team• Increase sales resources• Differentiate CX• Investment in scalability•

Increase of employee attrition- Transformation to Pure SaaS•

Difficulties due to the macro
economic environment- Enhance security• Realize synergy withPanasonic©️ Panasonic Connect Co., Ltd. 2023

2

Growth model of SaaS business
SaaS businesses require investments in scalability for increasing growth
Typical financial model ofSaaS businesses

Revenue“Bil $”[Sample]US-based company "S"*

8FCF(cumulative)

64Revenue

34221

Year

00-2

Year

FCF(cumulative)

0-1*A SaaS company for workflow management-4

Investment

Investment toreturn-2

Cash generative©️ Panasonic Connect Co., Ltd. 2023

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Investments in Blue Yonder
Invest for scalability and maximize the future business value of Blue Yonder⚫ Build scalable SaaS platforms

Main areas toinvest in-

SW architecture: Adopt Micro services for agility-

Cloud environment: Single tenant to Multi tenants-Data structure : Adopt Snowflake Data Cloud⚫ Differentiate customer experience and improve profitability-Enhancement of CX functions (optimizing NPS)-

Optimization of operations (creating “operating leverage”)-

Migration into pure-SaaS (improve Gross margin)

BY's growth will be accomplished by the experienced management team with Panasonic!
©️ Panasonic Connect Co., Ltd. 2023

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Strategy Briefing of Blue Yonder
May 10, 2023

Duncan Angove

Copyright © 2023 Blue Yonder Group, Inc.

FY23 Budget Rates

Blue Yonder – By the Numbers
Delivering Digital Fulfillment Solutions to Leading Manufacturers, Retailers and Logistics Providers
Blue Yonder is the world leader in digital supply chain transformations and omni-channel commerce fulfillment. Our end-to-end, cognitive businessplatform enables retailers, manufacturers and logistics providers to best fulfill customer demand from planning through delivery. With Blue Yonder,
you'll unify your data, supply chain and retail commerce operations to unlock new business opportunities and drive automation, control andorchestration to enable more profitable, sustainable business decisions. Blue Yonder – Fulfill your Potential™

CY22 Financial InfoCustomer Satisfaction$1.2B

1623597%

Revenue

New Customers
Per Year (2022)

Net Promoter Score(NPS, 2021)

Customer Retention(2022)$575m
SaaS ARR

Year founded1985

Customers

Our Customers:

3,000+

53 of the Top 100
Manufacturers

Digital Fulfillment
Cloud Platform

Workforce

73 of the Top 100~6,oooConsumer ProductGoods

Associates~31,500
Years of Experience Overall

Patents

3/3
A Leader inThree Gartner
Magic Quadrant Reports

AI/MLDriven
Platform

76 of the Top 100
Retailers~400

Scottsdale, AZ

110+

28 of the Top 50

Granted and Pending

Global headquarters

Data science experts working on Al/ML, analysis,modeling, optimization, and/or data engineering

Global 3PLsCopyright © 2023 Blue Yonder Group, Inc. Confidential

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Next Generation
Supply Chain Platform
Powering Cognitive Applications► Single Data Cloud► End-to-End Connectivity► Infinite Intelligence7

Our 7 Point Value Creation Plan (“VCP”)
Gross Margin
NRR

BUILD A PURE
SAAS OFFERINGDELIVERSUPERIOR CX
build referenceability,
operational resilience

OperatingExpenses
EBITDA

Luminate SaaS,
industry commerce
cloudsSIMPLIFY &OPTIMIZE THE
BUSINESS
organizational
effectiveness &efficiency

MODERNIZE,STANDARDIZE &DIFFERENTIATE
next generation
roadmap acceleration

CULTIVATEASSOCIATE
EXPERIENCEdevelop talent, buildengagement

ARR
Revenue Growth
ACCELERATE THE
GTM ENGINE
Increase coverage ofkey segments, newadjacencies, flood themarket

CONSOLIDATETHE MARKET
Drive economies ofscale and network
effects

The VCP focuses on seven pillars that will drive the Blue Yonder transformation

Copyright © 2023 Blue Yonder Group, Inc.

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CY23 VCP lays the foundation for our growth2022 Current State*

CY23 Investments

SaaS ARR

Additional $200m self-funding over next 3 years for our transformation,is required and is being directed to strategic priorities across the company to support the VCP.

$575M
SaaS Revenue Growth

20.5%

Sales

Product

CloudTotal Revenue$1.193B
Total Revenue Growth12%

CustomerExperience

Operations

Cloud Margins

52.6%
Adjusted EBITDA Margin

17.8%*CY23 Budget Rates

Copyright © 2023 Blue Yonder Group, Inc.

Increased upsell, increased cross-sell, increased net new wins
9Blue Yonder ICON 2023 – Major Announcements
Blue Yonder ICON 2023 ​is the premier conference for supply chain, commerce, and retail professionals!

Cognitive Next
Generation Supply
Chain Planning

End to End Supply
Chain Execution
Interoperability

Re-platforming theSupply Chain withSnowflake

Co-Innovation
Accenture
Partnership

And…
2023 Masters
Champion,Jon Rahm
Copyright © 2023 Blue Yonder Group, Inc.

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Solidifying Panasonic / Blue Yonder Synergies
Joint Solutions

Japan GTM••••

Panasonic Connect Japan Solutions Business
Increased Sales & Delivery Investment
IBM & Accenture GTM Partnership
Investment in Localization

Blue Yonder Supply Chain& Store Software Solutions

Blue Yonder Japan President
Daiju Watanabe(appointed on Jan 23, 2023)

Yard Visibility
Zetes : A subsidiary of Panasonic specializing in supply chain optimization and citizen identification solutions
Copyright © 2023 Blue Yonder Group, Inc.

11Revenue & SaaS KPI’s Trends(Reference) Blue Yonder’s KPI
Sales
293

Recurring/SaaS Sales Ratio
309

289310

307

309

66%

66%

66%

70%

69%

(Million US Dollar)

Recurring sales ratio
37%
108

113

125

CY21 Q4

CY22 Q1

CY22 Q2

127

CY22 Q4

36%

40%

491

32%

25%

510

538

25%
575

CY23 Q1

41%

44%

44%

CY22 Q1

CY22 Q2

CY22 Q3

CY22 Q4

CY23 Q1*Recurring/SaaS sales ratio to total sales**All figures based on FY3/24 forecast rates (US$: ¥130 / Euro:¥130) to exclude FX effect

SaaS Net Revenue Retention (NRR)
109%

110%

CY21 Q4

CY22 Q1

111%

108%

109%

CY22 Q3

CY22 Q4

19%

106%

586
100%

460
CY21Q4Q4FY2140%137

CY21 Q4
CY22 Q3

39%

SaaS sales ratio

137 SaaS

SaaS Annual Recurring Revenue (ARR)(Million US Dollar)

66%

CY22Q1FY22Q1CY22
FY22 Q2Q2CY22Q3
FY22 Q3*Annual recurring revenue: Earnings determined for the year starting with next quarter** Percentages represent Year over Year Growth***All figures based on FY3/24 forecast rates (US$: ¥130 / Euro:¥130) to exclude FX effect

Copyright © 2023 Blue Yonder Group, Inc.

CY22Q4
FY22 Q4CY23
FY23Q1Q1

CY22 Q2

FY23 Q1*Net Revenue Retention from existing customers**All figures based on FY3/24 forecast rates (US$: ¥130 / Euro:¥130) to exclude FX effect12

FY2023 Forecast of Blue Yonder

Copyright © 2023 Blue Yonder Group, Inc.

FY3/24 Forecast of Blue Yonder
AOP of standalone BY in FY3/24 will increase YoY excluding additional strategic investment
KPI to be monitored are Revenue, SaaS ARR and Recurring ratio
Break downs of adjusted operating profit(yen: billions)

FY3/23Results

FY3/24E

YoY

8.7

6.8

+1.9

(Additional strategic investment) *1 (a)(-8.4)(0.0)(-8.4)(Synergy investment) *2 (b)(-2.8)(-1.5)(-1.3)

Adjusted OP (1)

-2.5

5.3

-7.8

Amortization expenses related to acquisition (2)

-20.8

-18.2

-2.6

Temporary accounting treatment related to acquisition (3)

-0.3

-5.3

+5.0

Adjusted OP (1)+(2)+(3)

-23.6

-18.2

-5.4

Adjusted OP (stand alone) (1)-(a)-(b)StandaloneConsolidated*1 Additional strategic investment of US$200M planned for 3 years from 2023 to 2025
(Main items of FY3/24 Strategic investment: Product development, Enhancement of public cloud, security, etc.)*2 Synergy investment to create synergies within Panasonic Group(Main items of FY3/24 Synergy investment: Japan GTM promotion, solution co-development with Zetes, Clearview, R&D, and others.)©️ Panasonic Connect Co., Ltd. 2023

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