January 2020 Product Information Management Overview DISCLAIMER: ComCap LLC make no representation or warranty, express or implied, in relation to the fairness, accuracy, correctness, completeness, or reliability of the information, opinions, or conclusions contained herein. ComCap LLC accepts no liability for any use of these materials. The materials are not intended to be relied upon as advice outside of a paid, approved use and they should not be considered a guarantee of any specific result. Each recipient should consult his or her own accounting, tax, financial, and other professional advisors when considering the scenarios and information provided. CONFIDENTIAL An introduction to ComCap § ComCap is a premier boutique investment bank focused on the intersection of commerce and capital, with key focus on B2B SaaS, B2C e-commerce, payments, mobile commerce, marketplaces and B2B services for retail technologies (IT and marketing services, in-store, fulfillment, logistics, call center, analytics, personalization, location intelligence) § Headquartered in San Francisco with European coverage from London & Moscow, and LATAM coverage from Sao Paulo. Our firm works with mid-cap public companies on buyside initiatives and public and private growth companies on financing and strategic M&A § In addition to being the only boutique focused on disruptive commerce models, we differentiate by: ‒ Bringing bulge bracket techniques to emerging models; ‒ A strong and uncommon buyside/strategy practice; ‒ Deep understanding of industry drivers and synergy analyses; ‒ Deep relationships across the sector; and ‒ Worldwide coverage with closed transactions in the United States, Japan, China, the ASEAN region, Western and Eastern Europe and Latin America § Your senior global ComCap team: Aron Bohlig Steve Terry Fermin Caro Carlos Gonzalez Managing Partner Managing Director Director Director M: +1 415-235-8270 M: +1 415-971-3794 M: +1 650-743-7825 M: +7 985-062-9894 E: [email protected] E: [email protected] E: [email protected] E: [email protected] 2 CONFIDENTIAL ComCap holds a unique position at the global intersection of retail and technology leaders ComCap and European tech PE firm True Global hold event at Shoptalk 2019 for retail VPs of strategy to meet selected tech leaders Event description Key participants Name Title Company § ComCap and True Global facilitated a VP, Mergers & networking event for major retailers, David Colletti retail tech leaders, and investors at Acquisitions Shoptalk 2019, widely regarded as the most important retail conference of the SVP & Chief year Greg Fancher Information Officer − The networking event allowed retailers to connect with trending technology companies in verticals SVP, Product & such as AI/Analytics, fashion Erik Morton technology, in-store IoT, visual Strategy merchandising, and digital native vertical brands Head of Corporate § Over 50 major retail strategy Neil Tenzer Strategy executives and CEOs of innovative digital retail companies were in attendance across the United States, SVP, Chief Financial Europe, and Asia Randy Greben Officer − Strategy officers from key retailers represented at the event include Macy’s, 7-11, Li & Fung, Express, VP Digital, Marketing, and Abercrombie & Fitch Jason Gowans and Enterprise Data 3 CONFIDENTIAL ComCap – Active in 14 countries, including 9 of the top 10 global ecommerce markets $740.0 $561.0 Retail Ecommerce Sales Worldwide – 2019 ($US bn)1 $93.0 $87.0 $77.0 $69.0 $55.0 $44.0 $22.0 $16.0 China US UK Japan Germany South Korea France Canada Australia Brazil 1Source: Shopify Plus Ecommerce Playbook 4 CONFIDENTIAL ComCap’s thematic landscape Tech Companies Retailers/Brands Major Players Major Welcome AG i.G. >$200m $100m $75m $50m Amount Raised $25m 0 AI/Analytics B2C Ecommerce Fintech Logistics Marketing Mobile Personalization Retail SaaS In-store technology Source: Capital IQ, Pitchbook 5 CONFIDENTIAL Product Information Management (PIM): attractive investment and M&A opportunities for financial and strategic investors § PIM is growing in importance as more eCommerce professionals are looking for ways to aggregate and manage product content across all channels in order to solve their business challenges − To compete in the age of omnichannel commerce, eCommerce experts need a common infrastructure to centralize their product information and create channel- specific product experiences that are optimized for each channel's unique requirements and audience § Investment in PIM solutions by enterprises is expected to increase considerably in the medium term as PIM awareness increases, businesses move away from legacy systems, and integration with other eCommerce systems improves § Industry dynamics suggest that smaller, niche firms are finding favor over large software companies − Industry analysts have concluded that specialized solution providers currently enjoy leadership positions in terms of both, strategy as well as, the ability to execute § Strategic partners such as top vendors and SIs are rapidly gaining capabilities to service the full eCommerce suite ecosystem, presenting opportunities for investment and M&A opportunities 6 CONFIDENTIAL PIM solutions are central to ecommerce platform implementations Physical Touchpoints Enterprise systems and technologies Stores/ POS Kiosks Commerce Platform ERP/Supply Chain Branded Digital Touchpoints Marketing/ Experience Order Management CRM/ Loyalty Management Web Commerce Suite Business Intelligence Mobile Product Information Tablet Management Merchandising Contact Center Warehouse Management Social § PIM solutions are central and mission critical components to an ecommerce platform implementation § PIM solutions, like enterprise content management, order management systems and warehouse management systems, need to integrate with the major ecommerce platforms and benefit from independence Diagram adapted from Forrester B2C Commerce Suites report 7 CONFIDENTIAL What is a Product Information Management (PIM) solution? Software with a set of processes and tools to help centralize and manage a business’ product information to ensure a single, accurate view of product data internally, and across the entire external value chain and various stakeholders Product manager Copywriter Photography Category manager Marketing & SEO Content Drive rich customer collaboration engine Validate experience Supplier & Website & vendor portal mobile apps Ingest Enrich ERP Social media Syndication & Data quality integration PLM Trading partners Governance & Planning & Stewardship Merchandising Catalogs & Sales Spreadsheets Workflow sheets Legacy Marketing applications solutions Data tools Test & Learn Syndicate Data Pools CPQ and sales SCM systems portal Data Stewards Engineering Approvers Manufacturers Suppliers Distributors Partners Retailers Restaurants B2B B2C PIM content value chain Source: businesswire.com, plytix.com 8 CONFIDENTIAL Key features retailers look for in PIMs To compete in the age of omnichannel commerce, marketers need to exploit new channels Scope of PIM Essential product data: SKUs, UPCs, names, Channel-specific requirements: Google titles, descriptions categories, Amazon titles, mobile descriptions Sales Information: Prices, testimonials, Digital assets: Images, videos, documents customer reviews Taxonomy and relationships: Categories, Localized information: Multi-lingual copy, labels, variations translations Style sheets, designer notes, assembly, Marketing data: Keywords, personas, SEO instructions elements Technical specifications: Measurements, Supplier and manufacturer data materials, ingredients, warranties Hottest trends to dominate PIM MDM vs PIM vs DAM Social commerce MDM IT Tool, Multi domain, Common Features AI driven Governance oriented, Augmented internal system focus Workflow, Rules, Data realty integration, Data quality, PIM Roles and permissions, API Trends PIM Business application, Block-chain Only product data, Data Video & authentication enrichment, commerce Common Features Audio focus Asset management, Asset manipulation Integration with multiple DAM programs Source: Akeneo.com, transformsolution.com, plytix.com 9 CONFIDENTIAL PIM for omnichannel retailers PIM solutions and benefits for omnichannel retailers Enterprise Resources Planning End-to-end tracking of stock Supply, Finance Warehouse Better warehouse space optimization, Logistics Management System robotized supply chain Forecasting Better sales prediction (ex: seasonality, Supply & Tool product substitutions...) Logistics Assortment Category Better assortment PIM Optimization Tool Managers Pricing Optimization Tool Better pricing Pricing E-commerce New sales channels, better shopper E-commerce Back-end experience Digital Asset High quality content to create Marketing & Trade Management differentiating experiences marketing 10 CONFIDENTIAL Factors driving the fast adoption of PIM solutions in the industry PIM helps businesses standardize incoming, outgoing, and cross-departmental product information Reasons for adoption of PIM Enables faster Data growth Standardization Traditional tools are not capable Sellers require PIM for of facing new challenges synchronized information Managing product Boost brand Brings ops Benefits information consistency Improved CX efficiencies of PIM Controlling Full-stack e-commerce systems product data are not designed for continuous Omnichannel is improvement becoming more Increases speed to demanding Reduces costs market Features of a good PIM solution PIM use cases in e-commerce Channel-specific