Teradata The Leader in Enterprise Data Warehousing September 2008
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 www.teradata.com/investor. 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 >
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 Databases Oracle, IBM, Microsoft Enterprise Application Integration IBM, BEA, TIBCO, Oracle, SAP Data Acquisition & Integration Data Warehouse Databases Oracle, IBM, Microsoft Teradata Informatica, IBM, Oracle Servers, Storage... Servers, Storage... 3 >
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 Data Marts has resulted in fragmented data, higher costs, poor decisions 4 >
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 Data Warehouse (EDW) Marketing Supply Chain Finance Risk Management Maintenance Sales Operations Inventory Call Center Integrated data provides data consistency, lower costs, better decisions 5 >
The Value of EDW Sales + Market Basket +Customer + Profitability + Inventory Analysis Analysis Analysis Analysis Customer Data Financial Data Supplier Data Business Value Product Data Transaction Data EDW Investment Data Mart Consolidation 6 >
Go to Market by Industry Global 400 Penetration 51% 55% 51% Revenue by Industry (approximate breakdown) 33% 25% Communications 28% Financial 24% Retail Comm FIH* Travel & Trans Manuf Global 3000 Penetration 26% 31% 24% 24% Other 2% Healt hcare 5% Retail 19% 12% Travel & Trans 6% Gov't 7% Manuf acturing 9% Retail Comm FIH* Travel & Trans Manuf 2007 *FIH (Financial, Insurance, Healthcare) 7 >
Teradata Growth Opportunity Data Warehouse Infrastructure Market for the Global 3000 ($19B, 6.3% CAGR from 2007-2010) 9% Teradata (EDW) Oracle IBM Microsoft Others 91% Source: Teradata analysis of IDC and Gartner data. 8 >
Next Generation EDW Active Data Warehousing Hundreds of Strategic Decisions Strategic Intelligence Active Data Warehousing Extends strategic intelligence (EDW) to front-line workers, suppliers, customers for operational decisions Drives more users, decisions, data, and mission-critical environments Operational Intelligence Provides customers with realtime competitive advantage Hundreds of Thousands of Operational Decisions 9 >
Teradata s Industry-Leading Technology Technology Demands Extreme scalability Extreme performance Extreme availability Extreme data load and access Teradata s Multi-dimensional Scalability Data Freshness Mixed Workload Query Freedom Data Volume (Raw, User Data) Query Concurrency Query Complexity Schema Sophistication Mission critical 7x24 Teradata can scale simultaneously across multiple dimensions. Driven by business! Query Data Volume Competition scales one dimension at the expense of others. Limited by technology! 10 >
Gartner MQ for Data Warehouse DBMS, 2007 challengers leaders Magic Quadrant for Data Warehouse DBMS, 2007 Donald Feinberg, Mark A. Beyer (10 October 2007) ability to execute MySQL Teradata Oracle IBM Microsoft Sybase Netezza Greenplum DATAllegro Kognitio Sand Technology niche players visionaries 11 > completeness of vision As of September 2007 The Magic Quadrant is copyrighted 10/10/2007 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.
Teradata Platform Family 550 2500 5500/5550 Purpose Departmental applications and test and development Entry-Level Data Warehousing Active Enterprise Data Warehousing Scalability Up to 6TB Up to 140TB Up to 4 Petabytes Availability High High Enterpriseclass, mission critical Price per Terabyte $67K $119K $200K All Powered By Teradata 12! 12 >
Revenue Growth... Improving Profitability $ in millions Revenue 1,702 Operating Margin 337* 1,547 284 302 1,467 1,349 199 1,217 1,203 96 124 1,123 1,139 2000 2001 2000 2001 2002 2003 2004 2005 2006 2007 2% 1% 7% (1)% 12% 9% 5% 10% Revenue Growth Rate 2000 2001 2002 2003 2004 2005 2006 2007 (35) (36) (3)% (3)% 8% 10% 15% 19% 20% 20% Operating Margin * Non-GAAP: Adjusted for non-recurring expenses related to Teradata s spin-off from NCR. 13 >
Revenue Reporting & Operating Segments Operating Segments Revenue Breakdown 2007 % Total Americas EMEA APJ Products (SW/HW) (slightly more than 50% SW) $ 884 52% Revenue Revenue Revenue Professional and Installation Services 451 26% mix 57% mix 25% mix 18% Maintenance Services 367 22% Gross Gross Gross Total Revenue $1,702 Margin Margin Margin 58% 49% 51% 14 >
Strong and Improving Balance Sheet ($ in millions) As of Sep. 30 2007 As of Dec. 31 2007 As of Jun. 30 2008 Cash and Short-Term Investments 0 270 367 Working Capital 222 301 347 Total Assets 1,075 1,294 1,352 Debt 0 0 0 Deferred Revenue 236 246 283 Total Shareholders Equity 540 631 691 STRONG LIQUIDITY $367M Cash and Short-Term Investments $300M Credit Facility 15 >
Target Operating Model Revenue Growth Objective: Grow 30% faster than the market Margin Expansion Objectives: Short-term Absorb $30M of incremental new company costs in 08 Expense of adding new sales territories: $5M - $6M in 08 Longer-term Expect to expand margins, while continuing to invest in Research and development Sales territories Solutions Partnerships Consulting FY 2008 Guidance 5% - 8% 26% - 27% $1.35 - $1.45 Revenue Growth Tax Rate EPS Assumption Long-Term Objective 7% - 9% 26% - 27% 14% -18% CAGR 16 >
Going Forward: Drive Value Teradata is investing to help customers drive value from EDW and to drive Teradata s future growth Extend Technology Leadership > Enterprise and Active Data Warehousing > Purpose-Built Platform Family Expand Solutions and Offers > Teradata and Partner Solutions Increase Market Coverage > Sales, Consulting, and Partners > Adding 90 new sales territories over next three years Long-Term Target Revenue 7% - 9% Growth EPS 14% - 18% CAGR 17 >
Teradata The Leader in Enterprise Data Warehousing NYSE: TDC