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Investor Presentation Fourth Quarter 2015

Q4 2015 investor presentation web copy 11 5 2015 435pm

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Page 1: Q4 2015 investor presentation web copy 11 5 2015 435pm

Investor PresentationFourth Quarter 2015

Page 2: Q4 2015 investor presentation web copy 11 5 2015 435pm

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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.

Page 3: Q4 2015 investor presentation web copy 11 5 2015 435pm

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Gartner & Forrester – Teradata Leads In Analytics

The Forrester Wave™: Enterprise Data

Warehousing Platforms, Q4 2013

Gartner Magic Quadrant for Data Warehouse and

Data Management Solutions for Analytics

February 2015

Page 4: Q4 2015 investor presentation web copy 11 5 2015 435pm

INTEGRATED DISCOVERY PLATFORM

INTEGRATED DATA WAREHOUSE

DATA

PLATFORM

UNIFIED DATA ARCHITECTURE

Marketing

Executives

Operational

Systems

Frontline

Workers

Customers

Partners

Engineers

Data

Scientists

Business

AnalystsMath

and Stats

Data

Mining

Business

Intelligence

Applications

Languages

Marketing

USERS

ANALYTIC TOOLS &

APPS

Search TERADATA ASTER DATABASE

TERADATA DATABASE

INTEGRATED

BIG DATA PLATFORM

TERADATA

PORTFOLIO FOR

HADOOP

REAL TIME PROCESSINGERP

SCM

CRM

Images

Audio

and Video

Machine

Logs

Text

Web and

Social

SOURCES

Marketing

Executives

Operational

Systems

Knowledge

Workers

Customers

Partners

Engineers

Data

Scientists

Business

Analysts

USERS

Page 5: Q4 2015 investor presentation web copy 11 5 2015 435pm

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Teradata Analytical Ecosystem

1000 series

2000 series

600 series

6000 series

2000 series

6000 series

Page 6: Q4 2015 investor presentation web copy 11 5 2015 435pm

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Teradata Workload-Specific Platforms

Data Mart

Appliance

Extreme Data

Appliance

Data

Warehouse

Appliance

Active

Enterprise

Data

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 Data 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 Data. Hortonworks HDP

1.1

Discovery Platform for Big Data

Analytics with embedded SQL MapReduce for

new data types & sources

Page 7: Q4 2015 investor presentation web copy 11 5 2015 435pm

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Broadest, Most Flexible Hadoop Offerings in Market

Aster Big Analytics Appliance

Appliance for HadoopCommodity Offering

with DellSoftware Only

Overview Premier Premier Commodity Commodity

Value Proposition

Big data analytics in an integrated package

Enterprise-ready Hadoop with single vendor support

Pre-designed, cost-effective 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.

Data staging & refining Software to simplify

operation of Hadoop

Hardware staged, delivered by Dell

Teradata software install & support

Teradata software install & support

SegmentBusiness 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

Page 8: Q4 2015 investor presentation web copy 11 5 2015 435pm

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Continuous update and time-sensitive queries become important

OPERATIONALIZINGWHAT IShappening now?

Event-based triggering takes hold

ACTIVATINGMAKE it happen!

Primarily batch and some ad hoc reports

Increase in ad hoc analysis

ANALYZINGWHY did it happen?

REPORTINGWHAT happened?

Analytical modeling grows

PREDICTINGWHAT WILL happen?

Wo

rklo

ad

So

ph

istic

atio

n

Scalability

Stage 1

Stage 2

Stage 3

Stage 4

Stage 5

Teradata’s Data Warehouse Evolution/Vision

Page 9: Q4 2015 investor presentation web copy 11 5 2015 435pm

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Teradata’s Industry-Leading Technology

Technology Demands

• Extreme scalability

• Extreme performance

• Extreme availability

• Extreme data load and

access

Scalability Across Multiple Dimensions

Data Volume(Raw, User Data)

SchemaSophistication

QueryFreedom

QueryComplexity

QueryConcurrency

MixedWorkload

Query Data Volume

DataFreshness

Teradata can scale

simultaneously across

multiple dimensions.

Driven by business!

Competition scales one

dimension at the expense of

others.

Limited by technology!

Mission critical 7x24

Page 10: Q4 2015 investor presentation web copy 11 5 2015 435pm

10 © 2014 Teradata

Teradata Cloud

As a Service…..

EasyScale-up

Secure&

Reliable

High Performance

WorkloadManagement

Data Warehouse Discovery

Data Management

INTEGRATED DATA WAREHOUSE

DATAPLATFORM

DISCOVERY PLATFORM

Page 11: Q4 2015 investor presentation web copy 11 5 2015 435pm

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Revenue Mix

Approximate percentages of product and consulting services revenue by industry

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 &

Transportation6% 6% 6% 6% 5% 6% 6% 7%

Government 7% 5% 7% 7% 6% 6% 6% 7%

Other 2% 1% <1% <1% 2% 2% 3% 3%

Operating Segments

Marketing

Applications8% of total

revenue

45%+ of Teradata’s revenue is from recurring revenue sources.

Data & Analytics

92% of total revenue

Products (SW / HW) $1,227 45%

Consulting Services 817 30%

Maintenance Services 688 25%

Total Revenue $2,732

Revenue by Type

($ in millions) 2014 % of Total

Industry Vertical 2007 2008 2009 2010 2011 2012 2013 2014

Page 12: Q4 2015 investor presentation web copy 11 5 2015 435pm

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Strong Balance Sheet & Cash Flow

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

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

Balance Sheet 2007 2008 2009 2010 2011 2012 2013 2014 9/30/2015 ($ in millions)

Cash Flow 2007 2008 2009 2010 2011 2012 2013 2014 ($ in millions)