Are you prepared for ASC 606? A recent study shows over 50% of large public enterprises have yet to elect their adoption method. The countdown to compliance is on. Watch this presentation to learn how to automate your end-to-end compliance process, automating the contracts process, ask experts any questions you might have, and give yourself some peace of mind.

1. Countdown to Compliance
ASC 606 / IFRS 15

2. Submit your questions in the Q&A panel we will answer them at the end of the presentation
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On Today’s Webinar

3. The material presented in this webinar has been prepared for informational purposes only, and is
not intended to provide, and should not be relied on for, tax, legal or accounting advice. You
should consult your own tax, legal and accounting advisors before engaging in any transaction or
relying on information shared during this presentation.”
This webinar may include forward-looking statements that are subject to uncertainties and risks
that could cause actual results to vary materially from what is suggested or discussed here.
On Today’s Webinar
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4. Elevate Your ASC 606 / IFRS 15 Compliance Journey
and Start Automating Today
The December 15th, 2017 deadline for ASC 606 / IFRS 15
compliance is two months away. Manual efforts,
spreadsheets, and consultants might get you through your
first few months, but that approach is not sustainable.
“Countdown to Compliance”
Automation the end-to-end ASC 606 / IFRS 15 compliance process
4
Javier Reynaldos
CPA, FORMER CFO,
APTTUS SME
ON ACCOUNTING AND FINANCE
Mike Carrell
PRODUCT MARKETING
DIRECTOR, REVENUE
MANAGEMENT
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5. About ASC 606 / IFRS 15
5
ASC 606 / IFRS 15:
Revenue from Contracts with Customers
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6. About ASC 606 / IFRS 15 Affects All Companies
6 © Apttus, Corp
Public and Private
Companies
Global StandardsEffective
ASC 606: Dec 15, 2017
IFRS 15: Jan 1, 2018

7. What are ASC 606 / IFRS 15 and Why they’re Needed
7
Fix inconsistencies between US
and global accounting standards
Standardize revenue recognition
practice across industries to
improve comparability and
reduce complexity
Provide more useful information
to investors
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8. Anonymously speaking, how ready do you feel your company is to file under the
new ASC 606 / IFRS 15 accounting standards and how will you handle it?
[Please select one]
• We are ready and automated
• We are ready, and will use spreadsheets, manual efforts
• We are still planning for how we will handle this
• We have not started planning
• I’d rather not say
Polling Question #1
8

9. ASC 606 / IFRS 15 Creates a Five-Step Rev Rec Process
9
Evidence of Arrangement
Reasonably Collectible
Price Fixed and Determinable
Delivery Occurred
1
2
3
4
Identify Elements5
Allocate Revenue6
Identify the Contract(s) with a
customer1
Identify the performance
obligations in the contract2
Determine the transaction
price
3
Allocate the transaction price
to the performance obligation
4
Recognize revenue when the
entity satisfies a performance
obligation
5
4 Criteria to Recognize
SOP 97-2, SAB 104, ASC 605
2 Additional Steps
EITF 00-21, EITF 08-1
5 Steps to Recognize
ASU 2014-09 (ASC 606)
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10. Apttus Intelligent Cloud Solves ASC 606 /IFRS 15 Compliance
10
5 Steps to Recognize
ASU 2014-09 (ASC 606)
Identify the Contract(s) with a customer
Identify the performance obligations in the contract
Determine the transaction price
Allocate the transaction price to the performance
obligation
Recognize revenue when the entity satisfies a
performance obligation
ASC 606 Solved with
Apttus Intelligent Cloud
Apttus Contract Mgt. activated agreement(s) and
Apttus CPQ accepted proposal(s) define the contract
Products and services sold define performance
obligations
Contract terms, discounts, rebates, and promotions all
affect the expected consideration
Revenue allocation rules proportion transaction prices
by Standalone Selling Price
Revenue recognition rules applied to the products &
services are the source for journal entries into your
ERP of choice
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11. ASC 606 / IFRS 15 Affects Business Processes
11
• Managing an opportunity
through until revenue is
recognized, touches all
Quote-to-Cash business
processes
• Automating lifecycle changes
across a single database, when
Contracts/Assets owned
inevitably change
• Estimating the revenue stream
effects of promotions and
rebates
• Booking the compensation &
partner incentive costs of sales
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12. Performance Obligations Identified in Apttus
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All performance obligations identified in
Apttus Contracts & Assets Owned identified
Apttus CPQ. Seamless integration with
Apttus Revenue Recognition.
Products & Services
Subscription Term
Products & Services
Subscription Term

13. Apttus Orchestrates All Transaction Price Information
Explicit and implicit terms which affect
pricing and allocation are
all contained in Apttus.
Discount Approval
SLA Approval
Products & Services
Subscription Term
Total Price
Limits on Liability

14. Apttus Recognizes Revenue When Obligations Are Met
Apttus Revenue Recognition
automatically handles usage-based,
royalty-based, deferred recognition,
immediate recognition, ratable
recognition with deferred revenue,
and milestone-based recognition,
giving visibility into the revenue
recognition schedule, and passing
the pertinent data to the ERP system
of record.
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15. Align Incentives with New Revenue Recognition Policies
ASC 606 Impact: Commission expenses associated
with contracts must now be capitalized and
amortized in alignment with the timing of revenue
as earned
• Leverage incentives as a means to
encourage sales behaviors that accelerate
revenue recognition
• Easily change compensation plans based
on changes to billing or collection
amounts in an automatic, auditable, and
transparent system
• Properly calculate commissions at the
sales rep, customer or order level

16. Apttus Works Within Your Ecosystem
16
• Service Provisioning
• Usage
• Invoices
• AR Master
• Payments and Collections
• Revenue Recognition
• Financial System of Record
• Tax tables
• Tax calculations
• Tax line items
• eSignature
CRM
System Customer
Systems
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17. What are the challenges you foresee in ASC 606 / IFRS 15 Compliance?
[Check all that apply]
• Difficult to identify the contracts with customers
• Challenge to determine the standalone selling price
• Difficult to handle mid-cycle changes to contracts/assets purchased
• Other
Polling Question #2
17

18. Demonstration
18
CPA, former CFO,
and Apttus SME on Accounting and Finance
Getting to Cash
Billing and Revenue Recognition
“Everything is what it is, and not another thing.” –
Joseph Butler, Philosopher
JReynaldos
Javier Reynaldos
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19. Business and Technology Trends Require a Blend of Models
19
Merchandizing
Coupons
Discounts
Gifting
Multicurrency
Taxes
Bundles
Upsell
Downsell
Cancellation/
Activation
Fees
Overage
Family Plans
Pricing Tiers
Grace Periods
Freemium/Trial
One-Time Transactions
In-App Purchases
Micro-Transactions
One-Time Add-Ons
Monthly
Quarterly
Annual
Custom Time Frame
Minimum Use
Quarterly
Annual
Customer Time Frame
Thresholds
Rollover
Overage
Surcharge
Rated/Mediated
Subscriptions Usage/Consumption
Milestone
Physical Wallet
MRI Scanner paid for via Usage-based billing
Internet of Things (IoT)
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20. Omni-channel Selling Requires Real Time Integration with
Quoting and Revenue Management Systems
20
First-time and Repeat Purchases
Simple, Complex, or Bulk Products
Long or Short Sales Cycles
Physical, Digital, Subscription, Services
“Most purchasing scenarios require an
equal mix of self-service and
human-assisted service. ”
Forrester Research, B2B Omnichannel Commerce In A
Machine-Driven World, Dec 2017
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21. Apttus Defines a 10 Step Quote-to-Cash Process1
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1 - Configure
• ID correct combinations
• Choose bundles
• Make grouping recommendations
2 - Price
• Price specific combination
• Apply promotions, discounts, incentives
3 - Quote
• Commercial proposal generated
• Template for contract
4 – Contract Creation
• Formal agreement with T&Cs, pricing, etc. drawn up
• Internal approval routing
5 - Contract Negotiation
• Redlining and version controls
• Further approval routing
• Providing visibility
6 – Contract Execution
• Final agreement
• Signature
• Information availability
7 – Order Fulfillment
• Product delivery
• Management of SLAs
• Management of changes (e.g. adds, renewals)
8 - Billing
• Invoicing, adjustments
• Collections
• Forecasting
9 – Revenue Recognition
• Financial management of pricing, payment
terms, delivery
• Reconciliation to invoices
10 - Renewals
• Management of expiration timelines
• Add-ons, cross-sells, up-sells
• Leverage account history
1 Source: Chapter 3 from Intelligent Quote-to-Cash – The Outcome-Based Approach to Transforming Your Business, Kirk Krappe

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AFTER DEMONSTRATION
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23. Apttus the World Leader in Quote-to-Cash
23
AFTER DEMONSTRATION
Category Defining Enterprise SaaS Company
1300 Employees
500+ Customers, 1 Million + Users
100% Revenue Growth Rate
$41 Billion Global Market Opportunity
Proven, Experienced Management Team
$186M Investment from , KIA, ICONIQ, K1 & Salesforce
Recognized Leader Across Quote-to-Cash Categories
Defined the Category of Quote-to-Cash (QTC)
Deepest Team of QTC Experts Ever Assembled
Tier 1 Customers: Many of the Fortune 500
Community of 1M+ Users Globally
Financially Strong, Public-Market Ready
Largest Investment Across QTC Technology for Innovation
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24. CPQ Leader CLM Leader
B2B Order Mgt. Leader Digital Commerce Visionary
Independent Research Firms Confirm Our Leadership.
Billing Strong Performer
B2B Commerce Strong PerformerCPQ Leader
The World Leader in Quote-to-Cash
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25. 25
QUESTIONS
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