Teradata The Leader in Enterprise Data Warehousing

Transcription

1 Teradata The Leader in Enterprise Warehousing March 2009

2 Note to Investors Certain non-gaap financial information regarding operating results may be discussed during this presentation. Reconciliations of the differences between GAAP and non-gaap measures are available on the Investor page at Remarks and responses associated with this presentation include forward-looking statements that are based on current expectations and assumptions. These forward-looking statements are subject to a number of risks and uncertainties that could affect our future results and could cause actual results to differ materially from those expressed in such forward-looking statements. These risks and uncertainties are detailed in Teradata s Registration Statement on Form 10 and in our SEC reports, including, but not limited to, our periodic and current reports on Forms 10-K, 10-Q, and 8K, as well as the company s annual report to shareholders. 2 >

3 Information Technology Landscape Operational Systems Help Run the Business Operational/ Transactional Systems Oracle, SAP Analytic Systems Drive Business Decisions Business Intelligence/ Analytical Applications Oracle, SAP, SAS, Business Objects, Cognos, Microsoft, Teradata Transactional bases Oracle, IBM, Microsoft Enterprise Application Integration IBM, BEA, TIBCO, Oracle, SAP Acquisition & Integration Warehouse bases Oracle, IBM, Microsoft Teradata Informatica, IBM, Oracle Servers, Storage... Servers, Storage... 3 >

4 The Problem OPERATIONAL SYSTEMS Accts. Payable Accts. Receivable Invoicing Sales/Orders Finance G/L Customer Support HR Payroll Purchasing Order Fulfillment Manufacturing Inventory DECISION MAKERS Marketing Supply Chain Finance Risk Management Maintenance Sales Operations Inventory Call Center Proliferation of Marts has resulted in fragmented data, higher costs, poor decisions 4 >

5 The Teradata Solution OPERATIONAL SYSTEMS DECISION MAKERS Accts. Payable Accts. Receivable Invoicing Sales/Orders Finance G/L Customer Support HR Payroll Purchasing Order Fulfillment Manufacturing Inventory Enterprise Warehouse (EDW) Marketing Supply Chain Finance Risk Management Maintenance Sales Operations Inventory Call Center Integrated data provides data consistency, lower costs, better decisions 5 >

6 The Value of EDW Sales + Market Basket +Customer + Profitability + Inventory Analysis Analysis Analysis Analysis Customer Financial Supplier Business Value Product Transaction EDW Investment Mart Consolidation 6 >

7 The Value of Integrated Fragmented data offers limited business insight, providing answers to subject-specific questions, only. With each new data mart, IT repeats its development efforts and duplicates data Combining subject areas drives greater business insight providing sophisticated answers to cross-functional questions Requires only incremental work for each new subject area Orders Inventory Orders Demand Inventory 7 > Duplicated Shared

8 Revenue by Industry Financial 29% 2008 * Comms. Financial Services 24% 29% 28% Communications 28% 28% Retail 19% 16% Other 1% Healt hcare 4% Gov't. 5% Travel & Trans. 6% Manuf. 11% Retail 16% Manufacturing 9% 11% Travel & Transportation 6% 6% Government 7% 5% Healthcare 5% 4% Other 2% 1% * Approximate percentages of product and professional services revenue by industry. 40% Teradata Industry Penetration Global % 26% 22% 15% 14% 13% 8 > Comms. Retail Financial Travel & Healthcare Manufacturing Government Transportation

9 Teradata s Industry-Leading Technology Technology Demands Extreme scalability Extreme performance Extreme availability Extreme data load and access Teradata s Multi-dimensional Scalability Freshness Mixed Workload Query Freedom Volume (Raw, User ) Query Concurrency Query Complexity Schema Sophistication Mission critical 7x24 Teradata can scale simultaneously across multiple dimensions. Driven by business! Query Volume Competition scales one dimension at the expense of others. Limited by technology! 9 >

10 Gartner MQ for Warehouse DBMS, 2008 Magic Quadrant for Warehouse DBMS, 2008 Donald Feinberg, Mark A. Beyer (23 December 2008) The Magic Quadrant is copyrighted 23 December 2008 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. 10 >

11 Forrester Rates Teradata #1 The Forrester Wave : Enterprise Warehousing Platforms, Q Teradata provides the most scalable, mature, and flexible EDW solution on the market, and, through its recently released 2550 and 1550 platforms, offers an increasingly costeffective solution portfolio for diverse customer requirements. - James Kobielus, Forrester Research, Inc. 02/06/2009 The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of the Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester s call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse and vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions represent judgment at the time and are subject to change. 11 >

12 Teradata s Purpose-Built Platform Family Software Only Edition Mart Appliance 551 Extreme Appliance 1550 Warehouse Appliance 2550 Active Enterprise Warehouse 5550 Purpose Teradata on any Intel Platform Test & Development or Smaller Marts Analytics on Extreme Volumes from New Types Entry Level Warehouse or Departmental Marts Enterprise Scale for both Strategic and Operational Intelligence EDW/ADW Scalability Up to 6 TB Up to 6 TB Up to 50 PB Up to 140 TB Up to 10 PB Price Starting at $40K Starting at $67K / TB Starting at $16.5K / TB Starting at $99K / TB Starting at $200K / TB All Powered by Teradata Covering All Sizes and Analytical Requirements 12 >

13 Warehouse Platform Requirements Active (Access/Loads) Multi-generational coexistence XXX XXXX XXXX XXXXX XXXXXX Active Enterprise Warehouse (5550) Workload Mgmt. (Mixed) Availability Cross Functional (Complexity) Query Concurrency Scalability base Functionality Operational/Active X X X XX XX XXX XXX XX XXX XXXX XXXX XXXX XXXX XXXXX XXXXX XXXX XXXX XXXXX XXXXX XXXXX XXXXXX XXXX XXXXXX XXXXX XXXXX Warehouse Appliance (2550) Extreme Appliance (1550) Mart Appliance (551) Scope/Scalability The degree of operational/active on the vertical axis and the scope/scalability on the horizontal axis determines a company s location on the chart and its corresponding needs of the platform (shown in colored outline), based on the data warehouse criteria. The number of Xs in each grid denotes the weight of importance for that criterion, increasing as the needs move up and to the right. 13 >

14 Revenue Growth... Improving Profitability $ in millions Revenue 1,547 1,702 1,762 Operating Income , , ,217 1, ,120 1, (35) (36) 26% 1% 8% (1)% 12% 9% 5% 10% 4% Revenue Growth Rate (3)% (3)% 8% 10% 15% 19% 20% 19% 19% Operating Margin 14 >

15 Revenue Mix & Operating Segments Revenue Mix 2008 % of Total Operating Segments Products (SW/HW) (more than 50% SW) $ % Americas EMEA APJ Professional Services & Installation Services (80% - 90% PS) Maintenance Services % 24% Revenue mix 56% Revenue mix 26% Revenue mix 18% Total Revenue $1,762 Maintenance and subscription revenues contribute more than 30% of Teradata s total revenue. Gross Margin 57% Gross Margin 52% Gross Margin 48% 15 >

16 Strong/Improving Balance Sheet & Cash Flow Balance Sheet ($ in millions) Sep Dec Dec Cash & Short-Term Investments Working Capital Total Assets 1,075 1,294 1,445 Debt Deferred Revenue Total Shareholders Equity Cash Flow ($ in millions) Change Net Income Cash from Operating Income Free Cash Flow FCF % of Net Income 146% 148% 16 > STRONG LIQUIDITY $442M of Cash & Short-Term Investments $300M Credit Facility

17 Looking Forward Long-Term Revenue Growth: 7% - 9% Operating Margin: > Short-term: Absorb Expense of adding new sales territories: $13M in 2009 Higher R&D expense (2009 vs. 2008) Improve Efficiency Sales and PS resources, G&A expenses Reduce Discretionary costs, travel and no salary increases > Longer-term: Expand operating margin percentage , while continuing to invest in R&D, sales territories, solutions, partnerships & consulting 2009 Guidance Long-Term Objective 4 pts. of FX headwind * Revenue 7% - 9% Flat to down vs Higher than 2008, lower than % - 27% * Based on currency rates as of February 9, SG&A R&D Tax Rate 26% - 27% 17 >

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