Cloud Computing Plug Work IT Applications Redefining

Cloud Computing “Plug & Work” IT Applications Redefining the HR Outsourcing Model Reduce Cost, Engage Employees, and Scale Infrastructure Fidel Baca, Principal / CMO Exponent. HR • 214. 987. 4567 • www. exponenttechnologies. com 3/18/2018 © 2011 Exponent Technologies, Inc. 1

Our History 1978 1980 1982 1984 Larry Lacerte develops first GL Software 1986 1988 1990 First common Tax Prep Library First Tax Software First IRS Electronic Filing Beta First hosted Pay-as-you-go system (REP) 1992 1994 First Complete Tax Software library and documentation with REP capabilities via CD First laser Tax Forms for HP First CD-ROM technology for Tax Prep 3/18/2018 © 2011 Exponent Technologies, Inc. First DOS/WIN cross-compatible platform 1996 1998 2001 Sold Lacerte Tax Software to Intuit for 400+ million. . Today 1 in 4 returns still prepared using Lacerte Larry Lacerte starts Exponent. HR 2

Exponent. HR -- Organization Privately held and funded by Larry Lacerte § Founded in 1978 by Larry Lacerte § o o o As Lacerte Software Corporation (GL and Tax) Sold Lacerte Tax Software to Intuit in 1998 Started Exponent. HR in 2001 • § Founding team for Exponent. HR o o o 3/18/2018 Changed name to Exponent Technologies, Inc. Larry Lacerte, President / CEO Randy Zeller, EVP / CFO Fidel Baca, Principal / CMO © 2011 Exponent Technologies, Inc. 3

What we were solving for… § § Inability to view or correlate critical data sets § Inefficient transactional processes with no audit trail § Inability to engage with distributed workforce § Inability to scale current infrastructure § HR unable to focus on valued business contribution § 3/18/2018 Lack of granular/stratified cost management data Desire to outsource the HR function… © 2011 Exponent Technologies, Inc. 4

Challenging Myths and Mindsets § § ‘We need to keep our systems in-house to secure our data and integrate with other systems…. ’ § 3/18/2018 ‘HR is a cost center, not a critical part of the operation, and we don’t spend on HR technology for our business…’ ‘Employees are dumb, untrustworthy, or won’t self service. . . ’ © 2011 Exponent Technologies, Inc. 5

Evolving Environments Finance Employee Manager HR Service Center HR Manager Employee Finance Manager Employee HR HR Manager Employee Data Rules Workflow HR Finance Manager 3/18/2018 Employee In-house applications © 2011 Exponent Technologies, Inc. 6

Where is HR Focus and Value 3/18/2018 © 2011 Exponent Technologies, Inc. 7

Process vs Data Storage Approval Email Request Discuss Generat e Reports Data to Payroll Balance Validation Paper Request Enter in Payroll Audit Transaction s Process Payroll Reports to Manage rs Reports to HR Reports to Finance Update Balance Sheet Manager Employee Request Data Rules/Audit Workflow Notification s Reporting Finance Accountin g Human Resource s 3/18/2018 © 2011 Exponent Technologies, Inc. 8

Anywhere, Anytime, Secure Access Rules Workflow Data Single Application Multi-tenant 3/18/2018 © 2011 Exponent Technologies, Inc. 9

Business Model Benefits § Benefit of fixed cost combined with recurring revenue § § Pricing § 3/18/2018 Development Extensibility © 2011 Exponent Technologies, Inc. 10

Benefit to Clients § Enhancements expand platform and value § Standardized servicing § Prices come down over time § Variable configurations § Opportunity to enhance processes Service Cost Service Capabilities 3/18/2018 © 2011 Exponent Technologies, Inc. 11

Saa. S Platform Benefits § Multi-tenant platform o o Highly configurable o Highly scalable o § Lower cost delivery Extensible features Cloud-based o o Any browser device o 3/18/2018 Anywhere, anytime access Provides logistical and process opportunities © 2011 Exponent Technologies, Inc. 12

Scope of Offering § § Time / PTO / Payroll § Job Costing § Expense § Communication § Reporting § 3/18/2018 HR & Benefits ? ? ? ? © 2011 Exponent Technologies, Inc. 13

Timeline Growth (400) 2001 2002 2003 2004 Attrition (15) 2005 2006 2007 2008 2009 2010 2011 2012 Market Research Direct Marketing in the 200 – 2, 000 Space Business Plan and Platform Design Proof of Concept Platform and Beta Clients Development of Sales Model and Implementation Methodology 3/18/2018 Expanded Regional Presence and adjusted price to market Direct Marketing Combined with VAR Distribution Model Enhanced Engine Direct Marketing in the 50 – 5, 000 Space © 2011 Exponent Technologies, Inc. BI Expansion Web Services Expanded VARs Pricing Adjustment Began building client side configuration tools for market expansion Continue with Product Plan Adjust staffing model and operating cost for economic conditions 14

Success Stories § 3/18/2018 Nearly 400 organizations, representing over 80, 000 worksite employees in nearly every industry… © 2011 Exponent Technologies, Inc. 15