Business Outcome Led, Technology Enabled

Business Outcome Led, Technology Enabled

Safe-Harbor Statement Statements in this presentation and remarks and responses made in connection with this presentation include forward-looking statements that are based on current expectations and assumptions. These forward-looking statements include statements with respect to Teradata s future plans, expectations, beliefs, prospects and intentions and 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 statements. A detailed discussion of these risks and uncertainties is contained in Teradata s U.S. Securities and Exchange Commission (SEC) filings, including the company s most recent reports on Form 10-K and Form 10-Q, particularly under the heading Risk Factors. Copies of these filings are available online from the SEC or the company s investor page at: http://investor.teradata.com/financialperformance/sec-filings. Teradata undertakes no duty to update any information set forth in this presentation in light of new information or future events. Non-GAAP Financial Disclosures Certain non-gaap financial information regarding operating results is included with this presentation and may be discussed during the remarks and responses made in connection with this presentation to supplement Teradata s consolidated financial statements presented on a GAAP basis. Reconciliations of the differences between GAAP and non- GAAP financial measures are available on our investor page at http://investor.teradata.com/financialperformance/historical-non-gaap-measures. We believe that certain non-gaap financial information (such as Teradata s results excluding stock compensation expense and other special items, the exclusion of the marketing applications business which was sold during 2016, revenue on a constant currency basis, and free cash flow) is helpful in understanding our past financial performance and future results. We believe that providing these non-gaap measures in addition to the related GAAP measures provides investors with greater transparency to the information used by management in its financial and operational decision-making and allows investors to see our results as management does. This non-gaap financial information is not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with Teradata s consolidated financial statements prepared in accordance with GAAP. 2

Long-term strategic objectives Deliver business outcomes for our customers through analytics at scale focused on companies with the largest analytic opportunities powered by market-leading hybrid cloud technology enabled by world class talent passionate about customer success yielding double digit revenue growth with strong expansion of EPS & FCF 3

Business Outcome Led, Technology Enabled Strategy Business Outcome Led, Technology Enabled Analytic Solutions & Architecture Consulting Create business value for our customers, driving Teradata consumption Hybrid Cloud Solutions Deliver market-leading hybrid cloud software and solutions Go-to- Market Gain share at the companies with the greatest analytic potential Financial Perspective Long-term double digit revenue growth & strong expansion of EPS and FCF 4

Significant market opportunity - enabling double digit growth Focus: Business outcome led, technology enabled - From selling technology to delivering business value through analytics - From IT transactions to a trusted advisor to business and IT Approach: Easy to buy, easy to grow - From on-premises deployment to portable hybrid cloud solutions - From complex, a la carte options to simplified, consistent offerings - From primarily CapEx options to OpEx alternatives Business model: Shift to more predictable and recurring revenue - From perpetual licenses to subscription-based licenses Deliver business value by being the best analytical partner to the world s leading firms 5

Hybrid Cloud Solutions Teradata Everywhere TM Flexibility Teradata Database on IntelliFlex Teradata Database on Managed Cloud Teradata Database on AWS, Azure Teradata Database on VMware On-Premises Managed Cloud Public Cloud Private Cloud Analytical Ecosystem Unified Data Architecture Fully managed service offerings Performance 6

The strongest analytics offering in the world Our offering: Business outcome led, technology enabled Analytics Solutions & Architecture Consulting Analytic Business Consulting & Analytic Solutions Ecosystem Architecture Consulting Hybrid Cloud Solutions Teradata Everywhere TM Why we win Proven experience in solving the toughest analytical problems Real-world expertise in what really works World s best technology: production-scale, deployment agnostic 7

Extends Teradata into a larger, higher growth market Packaged Analytics $13B, 12% CAGR Analytic Tools & Consulting $16B, 14% CAGR Data Management $33B, 10% CAGR Teradata Historic Core Experimental / Discovery Scale of Operation Productionscale 8 Note: Revenue in 2016, CAGR 16-21 Source: IDC

Strategy focuses on companies with greatest analytic potential Increased penetration and share of wallet in top 500 analytical opportunities ~50% of addressable market is in the top 500 companies, defined by analytic potential.where Teradata is most differentiated Largest opportunity for consumption growth: Data volumes, complexity, and analytical opportunities Expanded relationships with business buyers, reinvigorated relationships with IT Restructured account teams with new focus on solving business problems Initiated company re-tooling to support new sales approach (including, compensation alignment, account-based marketing, talent investments) 9

Increasing resources for the largest customers and prospects Higher focus Global Top 500 Opportunities Larger, dedicated account teams for existing and new accounts, expanded relationships with business buyers Global Top 501-2,000 Opportunities Account team and industry consultants serve multiple clients, supported by inside sales Global Top 2,001-5,000 Opportunities Technology focused, standard offers with lower cost sales model, including public cloud marketplace Lower focus 10

Tcore consumption growth Tcore* installed base Increasing Tcore consumption - the key driver of our strategy 11 *Tcore is a consistent unit of consumption across all products based on the number of physical CPU cores in a system and the system s I/O throughput capabilities

Increasing recurring revenue creates more attractive model Recurring Non-recurring Drivers to maximize recurring revenue New Hybrid Cloud Solutions New Analytic Solutions % Recurring 43% New Tcore growth 2016 2019 2021 12 Note: Revenue excludes consulting. % Recurring revenue = recurring revenue divided by total revenue excluding consulting.

Multiple deployment options priced to create attractive, comparable options for customer Revenue Comparison Gross Profit Dollar Comparison Total revenue Total gross profit dollars On-prem Perpetual On-prem Subscription Managed Cloud Public Cloud On-prem Perpetual On-prem Subscription Managed Cloud Public Cloud 13 Note: 2/21/2017 Comparison shown for consistent unit of IntelliFlex Enterprise bundle; may vary based on configuration and deployment options

Targeted gross profit dollar expansion 2016 2019 2021 Gross profit dollars 14 2/21/2017

Expenses as a percent of revenue targets 100% 7% 24% 9-11% 24-26% 8-10% 19-21% 48% 2016 47-49% 2019 45-47% 2021 Revenue R&D SG&A Cost of Revenue 15

Targeted long-term operating profit and free cash flow growth after investment period 2016 2019 2021 Operating profit Free cash flow 16 Note: Free cash flow = net cash provided by operating activities less capital expenditures for property and equipment, and additions to capitalized software

Metrics to track our success Tcore (consumption) growth ARR Recurring revenue Recurring % of Free Cash Flow Analytical business & architecture consulting growth 17

Balance Sheet / Cash Flow Balance Sheet ($ in millions) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Cash and Cash Equivalents $270 $402 $661 $883 $772 $729 $695 $834 $839 $974 Working Capital $301 $475 $609 $837 $717 $728 $787 $577 $781 $894 Total Assets $1,294 $1,430 $1,569 $1,883 $2,616 $3,066 $3,096 $3,132 $2,632 $2,405 Debt 0 0 0 0 $301 $289 $274 $468 $780 $570 Total Deferred Revenue $246 $283 $280 $290 $363 $405 $415 $388 $382 $383 Total Shareholders Equity $631 $777 $910 $1,189 $1,494 $1,779 $1,857 $1,707 $939 $971 Cash Flow ($ in millions) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Cash from Operations $387 $440 $455 $413 $513 $575 $510 $680 $401 $446 Free Cash Flow $292 $369 $367 $330 $403 $427 $372 $551 $281 $328 18