Investor Presentation Fourth Quarter 2015
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
Gartner & Forrester Teradata Leads In Analytics Gartner Magic Quadrant for Warehouse and Management Solutions for Analytics February 2015 The Forrester Wave : Enterprise Warehousing Platforms, Q4 2013 3
UNIFIED DATA ARCHITECTURE ERP REAL TIME PROCESSING Marketing Marketing Executives SCM CRM INTEGRATED DATA WAREHOUSE Applications Operational Systems Images DATA PLATFORM Business Intelligence Customers Partners Web and Social TERADATA DATABASE Mining Knowledge Frontline Workers Machine Logs Text INTEGRATED BIG DATA PLATFORM TERADATA PORTFOLIO FOR HADOOP INTEGRATED DISCOVERY PLATFORM Math and Stats Languages Business Analysts Scientists Audio and Video SOURCES TERADATA ASTER DATABASE Search ANALYTIC TOOLS & APPS Engineers USERS
Teradata Analytical Ecosystem 2000 series 1000 series 6000 series 600 series 2000 series 6000 series 5
Teradata Workload-Specific Platforms Mart Appliance Extreme Appliance Warehouse Appliance Active Enterprise Warehouse Appliance for Hadoop Aster Big Analytics Appliance 600 Series 1000 Series 2000 Series 6000 Series Scale Up to 20TB Up to 186PB Up to 1.6PB Up to 61PB Up to 10PB Up to 5PB Workloads Test / Development or Smaller Marts Analytical Archive, Deep Dive Analytics Strategic Intelligence, Decision Support System, Fast Scan Strategic & Operational Intelligence, Real Time Update, Active workloads Appliance for Storing, Capturing and Refining. Hortonworks HDP 1.1 Discovery Platform for Big Analytics with embedded SQL MapReduce for new data types & sources 6
Broadest, Most Flexible Hadoop Offerings in Market Aster Big Analytics Appliance Appliance for Hadoop Commodity Offering with Dell Software Only Overview Premier Premier Commodity Commodity Value Proposition Big data analytics in an integrated package Enterprise-ready Hadoop with single vendor support Pre-designed, costeffective commodity hardware with Teradata software support Flexible hardware options with Teradata software support Value Add Single best analytics & discovery platform SQL-MapReduce & 70+ analytics Integrated hardware/software Software to simplify operation of Hadoop Integrated hardware/software that is engineered, staged, & delivered complete. staging & refining Software to simplify operation of Hadoop Hardware staged, delivered by Dell Teradata software install & support Teradata software install & support Segment Business Value Based IT Buy it Value Based IT Buy it Cost-Based IT Buy it, Build it Engineering IT Build it 100% Open Source, Community-Driven Enterprise Apache Hadoop 7
Workload Sophistication Teradata s Warehouse Evolution/Vision ACTIVATING MAKE it happen! Stage 5 Stage 4 Stage 3 Stage 2 REPORTING WHAT happened? ANALYZING WHY did it happen? PREDICTING WHAT WILL happen? Analytical modeling grows OPERATIONALIZING WHAT IS happening now? Continuous update and time-sensitive queries become important Event-based triggering takes hold Stage 1 Primarily batch and some ad hoc reports Increase in ad hoc analysis Scalability 8
Teradata s Industry-Leading Technology Scalability Across Multiple Dimensions Technology Demands Volume (Raw, User ) Extreme scalability Extreme performance Extreme availability Extreme data load and access Freshness Mixed Workload Query Freedom 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
Teradata Cloud Management DATA PLATFORM As a Service.. Warehouse INTEGRATED DATA WAREHOUSE Discovery DISCOVERY PLATFORM Easy Scale-up Secure & Reliable High Performance Workload Management 10 2014 Teradata
Revenue Mix Industry Vertical 2007 2008 2009 2010 2011 2012 2013 2014 Financial Services 24% 29% 28% 28% 28% 30% 31% 31% Communications 28% 28% 23% 24% 24% 21% 19% 19% Retail 19% 16% 17% 16% 16% 16% 14% 14% Manufacturing 9% 11% 10% 13% 12% 12% 13% 13% Healthcare 5% 4% 8% 6% 7% 7% 8% 6% Travel & Transportation 6% 6% 6% 6% 5% 6% 6% 7% Government 7% 5% 7% 7% 6% 6% 6% 7% Approximate percentages of product and consulting services revenue by industry Other 2% 1% <1% <1% 2% 2% 3% 3% Revenue by Type ($ in millions) 2014 % of Total Operating Segments Products (SW / HW) $1,227 45% Consulting Services 817 30% Maintenance Services 688 25% Total Revenue $2,732 45%+ of Teradata s revenue is from recurring revenue sources. Marketing Applications 8% of total revenue & Analytics 92% of total revenue 11
Strong Balance Sheet & Cash Flow Balance Sheet 2007 2008 2009 2010 2011 2012 2013 2014 9/30/2015 ($ in millions) Cash and Cash Equivalents $270 $402 $661 $883 $772 $729 $695 $834 $874 Working Capital $301 $475 $609 $837 $717 $728 $787 $577 $676 Total Assets $1,294 $1,430 $1,569 $1,883 $2,616 $3,066 $3,096 $3,132 $2,609 Debt 0 0 0 0 $301 $289 $274 $468 $710 Total Deferred Revenue $246 $283 $280 $290 $363 $405 $415 $388 $401 Total Shareholders Equity $631 $777 $910 $1,189 $1,494 $1,779 $1,857 $1,707 $996 Cash Flow 2007 2008 2009 2010 2011 2012 2013 2014 ($ in millions) Net Income $200 $250 $254 $301 $353 $419 $377 $367 Cash from Operations $387 $440 $455 $413 $513 $575 $510 $680 Free Cash Flow $292 $369 $367 $330 $403 $427 $372 $551 12