P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Descartes – Uniting Business in Commerce

May 2013

“Helping customers deliver”

: DSGX : DSG

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Safe Harbor

Certain statements made today and in this presentation including, but not limited to, statements

addressing economic uncertainty; investment in areas of Descartes’ business with high strategic value

and growth potential; our future operating performance; software-as-a-service business model;

strategy, market opportunity and vision; Descartes’ position and opportunity to lead its industry with its

business model; solution functionality and benefits derived therefrom; network penetration; ability to

complete acquisitions and contribution of completed acquisitions to Descartes’ operations;

anticipated churn in revenues; and competition constitute forward-looking information for the

purposes of applicable securities laws (“forward-looking statements”). These forward-looking

statements are subject to risks, uncertainties and assumptions that may cause future results to differ

materially from those expected. Factors that may cause such differences include, but are not limited

to, departures of key customers; the ability to attract and retain key personnel and transition when

key personnel depart; variances in our revenues from quarter to quarter; Descartes’ ability to

integrate acquired companies and personnel; fluctuations in fuel prices or shipment volumes;

fluctuations in international currency exchange rates; exposure to greater than anticipated tax

liabilities; changes in electronic customs filing regulations; the factors discussed under the headings

“Risk Factors” or “Certain Factors That May Affect Future Results” in documents filed with applicable

securities commissions and the documents incorporated by reference into such documents. If any of

such risks actually occur, they could materially adversely affect our business, financial condition or

results of operations. In that case, the trading price of our common shares could decline, perhaps

materially. We provide forward-looking statements solely for the purpose of providing information

about management's current expectations and plans relating to the future. You are cautioned that

such information may not be appropriate for other purposes. Except as required by law, we do not

undertake or accept any obligation or undertaking to release publicly any updates or revisions to

any forward-looking statements to reflect any change in our expectations or any change in events,

conditions, assumptions or circumstances on which any such statement is based.

2

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Agenda – Uniting Business in Commerce

• Proven Record of Execution

• Defined Mission – Relevant Vision – Ingrained Culture

• A Defined Plan

• Defined Strategic Plan

• Defined Go-to-Market Strategy

• Key Metrics

3

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

FY11 FY12 FY13 FY14 FY15

Adju

ste

d E

BIT

DA p

er

Share

Second 5-Year Plan

Actual

Reset Plan

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

FY06 FY07 FY08 FY09 FY10

Adju

ste

d E

BIT

DA p

er

Share

First 5-Year Plan

Actual

Plan

Proven Record of Execution

Defined Adjusted EBITDA per Share metrics used for planning:

Target: 10-15% annual growth

Actual: 20% CAGR over 7-year period

>66%

Second 5-Year plan – reset baseline for growth planning. We’re more than one year ahead of plan at the end of FY13 - with an incremental 17% of Adjusted EBITDA/Share generated.

First 5-Year plan generated an incremental 66% of Adjusted EBITDA/Share

Re

set

Pla

n

4

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Proven Record of Execution

Thousands

5

“Adjusted EBITDA” is a non-GAAP financial measure provided as a complement to GAAP financial measures to help investors understand

operational trends in our business. However, Adjusted EBITDA should not be used in preference to or instead of any GAAP financial measure. For

a definition of Adjusted EBITDA and a reconciliation to Net Income as determined in accordance with GAAP, please see our May 30, 2013 press

release.

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Defined Mission – Unite Business in Commerce

Making the world a better place through

logistics by improving the productivity,

efficiency and security of commerce

6

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Relevant Vision – A State of Things United

A global community united in commerce

via a multi-party platform

>10,000 Customers

Over 4.5 billion messages processed each year

>146,000 Connected Parties

Thousands of logistics service providers (air, ocean, ground, rail, intermediaries)

Millions of potential users and mobile assets in customer base, with about half a

million users and mobile assets currently live

7

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Ingrained Cultural Framework

One Networked Enterprise

Listen Educate Articulate Research Network

Transparency Entrepreneurial Spirit Accountability Metrics-focused on results

ONE LEARNing TEAM

Shareholders – Customers – Employees – Partners

8

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

A Defined Plan

• Defined Strategic Plan

• Exploit Convergence

• Creating a new category - RiMMS

• Leverage Moore’s and Metcalfe’s Laws

• Buy & Build

• Defined Go-to-Market Strategy

• Customers

• Innovation

• Solution Delivery

• Partners

9

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Defined Strategic Plan – Exploit Convergence; Focus on Congruent Intersection

Time to Value

Technology Convergence

Hardware

Networks

Business Network &

Agility

Business Process Convergence

People, Technology &

Process

Delivery Model Convergence

Holistic Business Processes

Market Convergence

My

Processes Your

Processes

Third-Party

Processes

SaaS 2.0 Web 2.0

BPO

GTC SCE

MRM

Software

Congruent

Intersection

RiMMS

10

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Defined Strategic Plan – Creating a new category: RiMMS

Resources in Motion Management Systems RiMMS: the convergence of 3 markets

11

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Defined Strategic Plan – RiMMS – State of Things United

RiMMS: The Logistics Technology Platform

Network

Applications Community

12

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Defined Strategic Plan – RiMMS – Sub-Communities of Interest

RiMMS: Sub-Communities of Interest

Delivery Network

Logistics Network

Retail Network

Congruent Network

etc. Network

13

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Defined Strategic Plan: Focus on Congruent Intersections

14

- Cargo security filings

- Declaration and fiscal compliance

- Ocean regulatory services

- Government solutions

GTC Solutions

- Route planning

- Route execution

- Mobile Applications

- Telematics

- Driver compliance

MRM Solutions

- Transportation management

- Forwarder and broker back office systems

- Logistics flow control

- B2B integration-as-a-service

SCE Solutions

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Descartes – Leveraging Moore’s and Metcalfe’s Laws

15

Content Management

Federated Networking

On Premise ERP &

Renting Software SaaS 1.0

Best of Breed Point to Point Exchanges D

egre

e o

f M

ulti-

Sta

ndard

Encapsula

tion

Dept. Enterprise Extra

Enterprise

Inter

Enterprise

Moore’s Law & Federated Networks:

The regular doubling of computer

capacity allows same services to be

delivered at a lower cost over time.

Metcalfe’s Law & Federated Networks:

The value of the network increases

exponentially for each node that you add

to the network.

Descartes & Federated Networks:

Network designed to leverage both laws,

by reducing prices for same services over

time while increasing revenues per unit

by buying, bundling and building

additional customers and services.

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Defined Strategic Plan: Buy & Build; Create New Category

Descartes has a defined plan to create a new industry category and business model focused on the congruence of 3 markets - RiMMS

Descartes’ solutions are delivered through its Logistics Technology Platform

Descartes is using a Buy & Build strategy to execute and bring solutions to market faster

3 Converging Markets Descartes Focuses on

Congruent Intersections

RiMMS

16

Market Dynamics

Slow growth High profits

Negative/no growth Stable profits

High growth Profits elusive

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Defined Go-to-Market Strategy (Customers)

17

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Defined Go-to-Market Strategy – Lead with Innovation

Command of Operations

Time

Multi-modal Network

2004 2005 2006 2010 2011

Network Based Multi -Party Apps

Logistics + Customs

Real-time Routing, Mobile + Telematics

Logistics Technology Platform

Social Federation

2012

Community Cloud

18

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Defined Go-to-Market Strategy – Solution Delivery

The Fusion of:

1. The Global Logistics Network

2. The industry’s broadest array

of modular interoperable web

and wireless logistics

management solutions

3. The world’s most extensive

global multi-modal logistics

community

Descartes Logistics Technology Platform

Network

Applications Community

19

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Defined Go-to-Market Strategy - Partners

Hardware

Partners

Software

Partners

Network

Providers C.O.I.N.s

Service Partners

Technology

Partners

Academia

Channel Partners

* C.O.I.N.S = Community of Interest Networks

United by Design Ecosystem

• Partner with leading hardware providers, software providers and networks

• Descartes opens its federated network via Open SCIs (Standard Collaborative Interfaces)

20

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Uniting Business in Commerce – How are we Doing?

Financial Excellence

• 34 consecutive quarters of profitability

• 8 years of record operating results

• Adjusted EBITDA per Share CAGR - 20% (7-year period)

Scale

• 10,000+ customers

• 800+ employees globally

• World’s largest logistics messaging network

Metrics-Driven, Focused on Results

Over 146,000 connected parties

Over 4.5 billion messages processed each year

Inherent Infrastructure

Ocean

Carriers

Freight

Forwarders

Manufacturers

Distributors

Retailers

Air Carriers

Customs

Authorities

Trucking

Companies

Sea Ports Airports

3PLs

The Global Logistics Network

21

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Strong Quarterly Operating Results

(US$ millions)

$ ∆

Q/Q

%

∆ Q/Q

$ ∆

YoY

% ∆

YoY

Q1 Q4 Q1

2014 2013 2013

Revenue $34.0 $33.8 $0.2 1% $29.9 $4.1 14%

Service Revenue $30.1 $30.1 $0 0% $27.7 $2.4 9%

Service as a % of Rev. 89% 89% 93%

Gross Margin 69% 68% 65%

Net Income $2.8 $7.8 ($5.0) (64%) $2.6 $0.2 8%

Adjusted EBITDA $10.4 $10.3 $0.1 1% $8.7 $1.7 20%

Adjusted EBITDA as a % of Rev. 31% 30% 29%

Adjusted EBITDA per Share 0.16 0.16 - 0% 0.14 0.02 19%

Cash Generated from Ops $9.6 $14.1 ($4.5) (32%) $4.4 $5.2 118%

DSO 52 55 (3) 58 (6)

Summary of Unaudited Results

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Strong Annual Operating Results

(US$ millions) $ ∆

% ∆

2013

2012

Revenue $126.9 $114.0 $12.9 11%

Service Revenue $116.8 $105.7 $11.1 11%

Service as a % of Rev 92% 93%

Gross Margin 67% 66%

Net Income $16.0 $12.0 $4.0 33%

Adjusted EBITDA $38.2 $33.0 $5.2 16%

Adjusted EBITDA as a % of Revs. 30% 29%

Adjusted EBITDA per Share 0.60 0.52 0.08 15%

Cash Generated from Ops $30.3 $23.9 $6.4 27%

Summary of Audited Results

23

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

$0.00

$0.02

$0.04

$0.06

$0.08

$0.10

$0.12

$0.14

$0.16

$0.18

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

Q4FY05

Q1FY06

Q2FY06

Q3FY06

Q4FY06

Q1FY07

Q2FY07

Q3FY07

Q4FY07

Q1FY08

Q2FY08

Q3FY08

Q4FY08

Q1FY09

Q2FY09

Q3FY09

Q4FY09

Q1FY10

Q2FY10

Q3FY10

Q4FY10

Q1FY11

Q2FY11

Q3FY11

Q4FY11

Q1FY12

Q2FY12

Q3FY12

Q4FY12

Q1FY13

Q2FY13

Q3FY13

Q4FY13

Q1FY14

Ad

juste

d E

BIT

DA

per S

hare

Ad

juste

d E

BIT

DA

($

M)

Adjusted EBITDA Adjusted EBITDA per Share

Adjusted EBITDA per Share

24

7 Year CAGR

Adjusted EBITDA – 26%

Adjusted EBITDA per Share – 20%

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Strong Cash Generation

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

FY07 FY08 FY09 FY10 FY11 FY12 FY13

Adjusted EBITDA Cash Generated from Ops

25

Cash generated from operations in FY13 increased 27% over FY12 Generated $9.6 in cash from operations in Q1FY14 – up from $4.4 in Q1FY13

P r o p r i e t a r y a n d C o p y r i g h t o f T h e D e s c a r t e s S y s t e m s G r o u p I n c . A l l r i g h t s r e s e r v e d .

Baseline Calibration – as of May 2 (post KSD)

Figures per Qtr

Beginning

of Q4 FY09

Beginning

of Q4 FY10

Beginning

of Q4 FY11

Beginning of Q4 FY12

Beginning

of Q4 FY13

Beginning

of Q1 FY14

Beginning

of Q2 FY14

Baseline Revenues

$15.5 $18.0 $25.0 $27.5 $31.6 $31.8 $35.5

Baseline Operating Costs

$12.2 $13.9 $19.2 $21.0 $24.0 $24.1 $27.7

Baseline Calibration

$3.3 $4.1 $5.8 $6.5 $7.6 $7.7 $7.8

Baseline Calibration as a % of Baseline Revenues

21% 23% 23% 24% 24% 24% 22%

• Baseline revenues = visible, contracted and recurring revenues. Baseline revenues is not a revenues

projection as it excludes sales concluded in the period

• Baseline operating costs = operating costs, less stock-based compensation, restructuring and acquisition-

related costs, depreciation and amortization. Baseline operating costs are not a cost projection as they

exclude expenses associated with new sales in the period.