2012_Gartner Investor Day (1)

8/2/2019 2012_Gartner Investor Day (1)

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This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or otherauthorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,

distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. 2012 Gartner, Inc. and/or its affiliates. All rights reserved.

Brian Shipman

GVP Investor


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Agenda

Business Overview Gene Hall

Research Peter Sondergaard

Events Alwyn Dawkins

Consulting Per Anders Waern

Break

Sales David Godfrey

Financial Overview Chris Lafond

Summary / Q&A Gene Hall and Chris Lafond


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Extraordinary Research Insight ThroughThree Business Segments

Extraordinary

ResearchInsight


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Note: Percentages based on midpoint of 2012 revenue guidance.

GartneResear

Busine70%

Extraordinary

ResearchInsight



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GartnerConsultingBusiness

20% GartneResear

Busine70%

ExtraordinaryResearch

Insight


Extraordinary

ResearchInsight


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20% GartneResear

Busine70%

Gartner EventsBusiness

10%


Insight


Extraordinary

ResearchInsight


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A Vast, Untapped Market Opportunity

Source: Gartner internal estimates.

$1.1 Billion**

* technology, professional services, telecommunications and investors** 2011 ending contract value

$47 Billion

2012

12

18

5

48

Other*

Front-line ITProfessionals

Supply Chain

CIOs

IT FunctionalLeaders


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Winning Growth Strategy


Insight

Strong SalesCapability

High-ValueDifferentiated

Offerings

Performance-Driven Leadership Team

Continuous Improvement and Innovation

WoS


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Extraordinary Research Insight

2005 Tod

Focus onCritical Topics

V2 V3 V4 V5 V6 V7

ExpandedCoverage Areas

Enterprise Architecture

Supply Chain

Tech Professionals

Analyst TimeOptimization

V1 V2 V3


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2005 Tod

Extraordinary

Research Insight


High-Value,

DifferentiatedOfferings

World ClassService


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Insight



Offerings



WoS


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Performance Driven Leadership Team

Tenure WorldGlobal

6 years

Avg Tenure in Role

Promotion46%

Sour

USNon-US

Nationality

12 years

Avg Tenure at Gartner


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Insight



Offerings



WoS


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Contract Value

509593

640

753834

784

978

1116

2004 2005 2006 2007 2008 2009 2010 2011

$m


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Normalized EBITDA

103 100

150

190214

191

230

279

315-

335

2004 2005 2006 2007 2008 2009 2010 2011 2012E

Restated to exclude results of Vision Events. See attached Glossary for a discussion of normalized EBITDA.

$m


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Normalized EBITDA Margin

11.8%10.4%

14.5%16.3% 16.7% 16.8%

17.9%19.0%

2004 2005 2006 2007 2008 2009 2010 2011 201

EBITDA%

Restated to exclude results of Vision Events. See attached Glossary for a discussion of normalized EBITDA.

19.20


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EPS from Continuing Operations

$0.09-$0.05

$0.47

$0.65

$0.98$0.85

$0.96

$1.39

$1.63-$1.79

2004 2005 2006 2007 2008 2009 2010 2011 2012E


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$m

$0.09-$0.05

$0.47

$0.65

$0.98$0

2004 2005 2006 2007 2008 20

Contract Value Normalized EBITDA Margin

Normalized EBITDA EPS from Continuing Operat


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5,100 CIOs

The World's Most Important Gathering of CIOs and Sen


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2012 Sales Kickoff


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Why Invest in Gartner?

Long-term,Double-Digit

Revenue, EPS &CF Growth

Winnin

Exceptional Vast Market Opportunity

Strong Value Proposition


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This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or otherauthorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.

2012 Gartner, Inc. and/or its affiliates. All rights reserved.

Senior Vice

Peter Sondergaard


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Gartner Research

Winning Strategy

Vast Market OpportuStrong Value Proposition


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The Next Age of Computing

INFORMATION

MOBILESOCIAL

CLOUD

NEXUS OF FORCES


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Public Cloud Growth

0

50

100

150

200

2011 2012 2013 2014 2015

$ Billions

Business Process Services Applications

Systems Infrastructure Application Infrastructure

Source: Gartner Estimates (2Q11 Update)


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INFORMATION

MOBILESOCIAL

CLOUD

NEXUS OF FORCES


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Whats Installed

0

1

2

3

4

5

6

2011 2012 2013 2014

Billions

Deskbased PC Mobile PC Smart Phones Media Tablets



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The Big Shift

0%

20%

40%

60%

80%

100%

2011 2012 2013 2014

Unit Share


Mobile OS

PC OS


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INFORMATION

MOBILESOCIAL

CLOUD

NEXUS OF FORCES


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2012 Client Key Initiatives

Source: Gartner.com Data, January 2012

2 Mobile Enterprise Strategy

3 Enterprise Architecture

4 IT Strategic Planning

5 IT Governance

7 Data Center Modern

8 IT Cost Optimizatio

9 Business Intelligen

10 Application Develop

Rank Key Initiative Rank Key Initiative

1 Cloud Computing 6 ITIL and Process Im


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2006 Client Key Initiatives

Source: Gartner.com Data, January 2007

4 Application Development

5 ERP & Supply ChainManagement

6 Mobile & Wireless

7 Customer RelationsManagement

8 Application IntegratMiddleware

9 Outsourcing

10 Emerging Technolo


2 Security & Privacy

3 Business Intelligence

Rank Key Initiative Rank Key Initiative


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Gartner Research


GartneResear

Busines



20%

70%


Insight

10%

Gartner Research Model


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Gartner Research ModelThe Research ProcessPeople Process Proprietary Data Pack



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Gartner Research ModelThe People Analysts

Subject Matter Experts

Over 810 analysts in 26 countries

Over 135 based in APAC, over 190

based in Europe

Minimum 12 years of experience attime of hire

60% have 20+ years of industry

experience

190

485

People Process Proprietary Data Pack



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Gartner Research ModelThe Research Process

Decision Makers

in 12,400 organizations

AcademicInstitutions

Technology &Service Prov

12,000 briefings

Investors




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Transpare

Objectivit

Collabora

Quality



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2 Mobile Enterprise Strategy

3 Enterprise Architecture


5 IT Governance

Rank Key Initiative

1 Cloud Computing




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Gartner Research ModelProprietary Data and Analytics

42

Proprietary Data and Analytics

Over 2,300contract reviews

and almost

8,500 strategyreviews

A terabyte ofcontinually

updated marketdata

5,500 IT Costand Price

benchmarks

290,000recorded

interactions

5.5 milliondocument page

views

4.5 millionend-user

searches peryear



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Scalable structure and phandle 290,000 interactio

Phone access to analyst

Face-to-face interactions

Interactions

Packaging and PresentationPeople Process Proprietary Data Pack

G t R h


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Gartner Research

Highly differentiateddelivered primarily tdigital media subsc

Gartner Researc

GartnerResearchBusiness


70%

PeopleProcess

Proprietary DataPackaging

Gartner Research


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Gartner for IT Executives

Equips CIOs with the role-specificknowledge they need to deliver exbusiness results for their organiza

Vast Untapped Market Opportunity

$1.1 Billion**

Source: Gartner internal estimates

* technology, professional services, telecommunicationsand investors

** 2011 ending contract value

$47 Billion

2012

Other*


Supply ChainCIOs


12

18

54

8


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Gartner Research


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$1.1 Billion**




$47 Billion

2012

Other*


Supply ChainCIOs


12

18

54

8

Gartner for Technical Professio

Provides IT technical professionaladvice to drive technology architeand implementation strategy

Gartner Research


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Gartner for Supply LeadersProvides Supply Chain leaders wiindustries advice and tools to optisuccess on critical initiatives arounvalue chain


$1.1 Billion**




$47 Billion

2012

Other*


Supply ChainCIOs


12

18

54

8

Gartner Research


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$1.1 Billion**




$47 Billion

2012

Other*


Supply ChainCIOs


12

18

54

8Gartner for Business Leaders

Provides business leaders in TechService providers with the tools anensure they succeed in the marke

Continuous Product Innovation


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Continuous Product Innovation

Content Technology Platform Usability



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Right direction,right away

Immediateshortlists on keyinitiatives

Contract reviews

Best-practicebudget benchmark

Cost avoidance

Global perspective

Best practice byvertical industry

Strategic guidance

Makindecis

Persodevel

Increa

Save Time Save MoneyGain

Resources C

Gartner Research


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Gartner Research

Winning Strategy



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This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or otherauthorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. 2012 Gartner, Inc. and/or its affiliates. All rights reserved.

Senior Vice

Gartn

Alwyn Dawkins

Gartner Events


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Gartner Events

Winning Strategy


Gartner Events


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Gartner Events

GartnerEventsBusiness

Differentiatedevents leveraresearch con




Insight

10%


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Make every conference we produce the MATTEND

event for the communities we s

Our mission:

Gartner Events


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Gartner Events

60 Events

6 Continents

42,800 Attend

1,500 Exhibito

World's Leading IT Conference Producer


Insight

10%

Gartner Events


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10%

PeopleProcess

ProprietaryData

Gartner EventsGartner EventsBusiness

Current

Relevant

Actionable


Attendee Value Proposition


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Attendee Value Proposition

Face-to-face Analyst interaction

Industry leaders

Unparalleled peer networking

Access to leading solutionproviders

Actionable advice

Exhibitor Value Proposition


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p

Face to face interawith high level atte

Cost effective meagenerate leads

2011 Gartner Event Portfolio


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60 strategic conferences15% increase in global attendance


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Symposium strategy drivingincreased CIO attendance


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5,100 plus

18% YOY

2007 20102008 2009 2011

+32%

+40%

+23%

+18%

1,900

2,500

3,500

4,300

5,100

Global Symposium CIO Attendance

2012 Gartner Event Portfolio


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63 strategic conferences

Gartner Events


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Winning Strategy



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Senior Vice

Gartner C

Per Anders Waern

Gartner Consulting


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Longer-term differeengagements leverGartner research



20%


Insight


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Gartner Consulting


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Core Consulting

Benchmarking S

Contract Optimiz

20%


Insight

Gartner Consulting


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Independent and

Powered by GartResearch

Proprietary BencEnabled

20%


Insight

Experienced Senior Practitioners


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481 billable Co

$424K averagerevenue per he

Powerful valuefor attracting to


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Gartner Consulting


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Longer-term diffeengagements leveGartner research

50% cost saving

Mobility roadmap

Cloud strategy

20%


Insight


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>$1.4Bin documented client savings

Gartner Consulting Contract Optimiz

Gartner Consulting


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Longer-term diffeengagements leveGartner research

20%


Insight


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Gartner Consulting


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Winning Strategy



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Senior Vice

Worldw

David Godfrey

GartnerG t E t


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GartneResearBusines



20%

70%

10%


Insight

Gartner Sales


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Gartner Sales1 268 quota bearing 186% gro


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1,268 quota-bearingsales associates

186% gro2004

48% outsStates

Profile of aGartner Account

Executive

Highly m

Great sa

Passiona Goal orie

Market Opportunity


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2008

80,000

2012

108,000

Enterprise Opportunity

Market Opportunity


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2008

19,000

2012

34,000

Covered Enterprises


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$47 Billion

Total Market Opportunity


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18

5

8

2012

Other*


Supply Chain

CIOs


* technology, professional services, telecommunications and investors


Other*

CIOs


2008

$21 Billion

7

11

3

12

4

# of Enterprises$47 Billion

Vast Market Opportunity For Research


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74,000

Total

108,000

Uncovered Covered

34,000

12

18

5

4

8

2012

Other*


Supply Chain

CIOs


Pros

25

Percent of Total 100% 69% 31% 2

$1.1 Billion**





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Gartner Sales


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Winning Strategy


Sales Strategy to Capture Market Opportu


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Coverage

Capacity

SalesEffectiveness


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Capacity

SalesEffectiveness

Coverage


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15 20% i d l l hCapacit


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15 - 20% increased annual sales hobjective

Architected recruitment and trainin

Capacity

443 550

663806

928 9421049

1268

2004 2005 2006 2007 2008 2009 2010 2011

Direct Quota Bearing Headcount


15 20% increased ann al sales hCapacity


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15 - 20% increased annual sales hobjective

Architected recruitment and trainin

Capacity

443 550

663806

928 9421049

1268

2004 2005 2006 2007 2008 2009 2010 2011

Direct Quota Bearing Headcount


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Gartner Sales: A great place to work

Gartner culture


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Gartner culture

Collaboration

Leading tools andBest Practices

Access to the C-Level

Innovative products


Foc sed channel approachCoverage


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Focused channel approach

Matched to global opportunity

Emphasizing client intimacy

Coverage

8,720

9,315 9,470

10,18910,579 10,492

11,601

12,427

2004 2005 2006 2007 2008 2009 2010 2011

Research Client Organizations

5864

68

7479

2004 2005 2006 2007 2008 2

Average Contract per Organizati

$K


G t T l tSales


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Great Talent

World Class Training

Proprietary Tools and Best Practic

Effectiveness

Gartner Sales


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Winning Strategy



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Gartner Chief Financ

Chris Lafond

Consistent, Winning Growth Strategy


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Insight



Offerings



WoS

Consistent, Winning Growth Strategy:The Financial Plan We Set in 2005

Grow the Research business


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Optimize the Events portfolio

Improve the profitability of the Consulting busines

Leverage our G&A infrastructure

Drive shareholder value

Grow the Research Business

Contract Value


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509

1,116

2004 2011

$M

>100%

Consistent Growth Strategy:Grow the Research Business

2004 2012 E ti


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(a) Based on midpoint of 2012 revenue guidance.

Events 13%

2004

Consulting30%

Research 57%

Events 10%

2012 Estima

Consulting20%

Optimize the Events Portfolio

# Events Attendees Exhib


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# Events

+7%

2004

60

2011

56

Attendees

30,999

42,808

+38%

2004 2011

1,321

+1

2004

Exhib

Revenue ($M) Headcount Gross Con

Improve Consulting Profitability


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($ )

2004

$259

2011

$308

eadcou t

2004

493

2011

481

Margi

2004

34%

Leverage our G & A Infrastructure


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2004

18% ofrevenue

2011

15% ofrevenue

Drive Shareholder Value

Shares Outstanding ($000s)


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44 Million sharerepurchased

$963.5M returneto shareholders

g ( )

2004

126,326

2011

98,846

-21%

Consistent, Winning Growth Strategy:CF & Earnings Track Record

279

Normalized EBITDA (a)

$ in millions

Normalized EBITDA M


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103

2004 2011

11.8

2004

EBITDA%

$0.09

$1.39

2004 2011

EPS from Continuing Operations

23

2004

Free Cash Flow$ in millions

(a) See the attached Glossary for the definition of Free Cash Flow, and cautionary statement regarding this non-GAAPfinancial measure.



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Long-term,Double-Digit

Revenue, EPS &CF Growth

Winnin



Value Proposition: We Deliver Our ExtraordiResearch Insight Through Three Business S



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GartneResearBusines


20%

70%

10%


Insight


Insight

Vast Market Opportunity For Research

74,000108,000

# of Enterprises$47 Billion

Other* 8


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Pros

25

Percent of Total 100% 69% 31% 2

Total Uncovered Covered

34,000

$1.1 Billion**




2012


Supply Chain

CIOs


4

5

18

12

Attractive and Predictable Business Mode

Subscription-based business model


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High renewal/retention rates80% plusattractiv

level of recurring revenue

Negative working capital

High incremental margins

Strong balance sheet

High level of conversion from earnings into FCF

Attractive Business Model: Margin Expan

High incremental gross contribution marginlong term targets


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long-term targets

Research

70% Events50%

Consulting40%

11.8%

19.0%Normalized EBITDA Margin

+720BPS

2004 2011

Attractive Business Model: Strong Cash FLeverage Conversion

Net Income Free Cash Flow (a)$ in millions

Free Cash Flow


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(a) See the attached Glossary for the definition of Free Cash Flow, and cautionary statement regarding this non-GAAP financialmeasure.

$ in millions

17

137

2004 2011

+706%

$ in millions

23.0

2

2004 2

+830%

$ in millions

Long-Term Financial Objectives

Total Revenue Growth 11 16%

Annual


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Normalized EBITDA

margin improvement

50 150 bps per ye

Total Revenue Growth 11 16%Research 15 20%Consulting 3 8%Events 5 10%

Consistent Growth Strategy

Total Revenue (a, d)


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(a) Restated to exclude results of Vision Events.(b) See the attached Glossary for the definition of Normalized EBITDA, and cautionary statement regarding this non-GAAP financial measure(c) 2012 Normalized EBITDA margin based upon mid-point of 2012 guidance(d) See Forward Looking Statement disclaimer on page 1 for factors that may affect our ability to achieve these results.(e) See the attached Glossary for the definition of Free Cash Flow, and cautionary statement regarding this non-GAAP financial measure

$ in millions

869964 1,037

1,1681,279

1,1401,288

1,469

2004 2005 2006 2007 2008 2009 2010 2011 2012E

1,600-1,650


Normalized EBITDA (a, b, c, d)315-335


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103 100

150

190214

191

230

279

2004 2005 2006 2007 2008 2009 2010 2011 2012E


EPS from Continuing Operations (d) $1.63-$1.79


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$0.09

-$0.05

$0.47$0.65

$0.98$0.85

$0.96

$1.39

2004 2005 2006 2007 2008 2009 2010 2011 2012E


214Free Cash Flow (a, d, e)

$ in millions

239-257


129/142


235

85

124

160147

192

214

2004 2005 2006 2007 2008 2009 2010 2011 2012E

$ in millions



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Long-term,Double-DigitRevenue, EPS &

CF Growth

Winnin


8



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Appendix

Projected 2012Full Year Revenue and EBITDA Outlook

($ in millions except per share data) 2012 Projection (1)Reporte

% change


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Research $ 1,130 - 1,150 12% - 14

Consulting 310 - 330 1% - 7Events 160 - 170 8% - 14

Total Revenue $1,600 - 1,650 9% - 12

Normalized EBITDA (2) $315 - 335 13% - 20

(1) See Forward Looking Statement disclaimer on page 1 for factors that may affect our ability toachieve these results.

(2) See the attached Glossary for a discussion of Normalized EBITDA

Projected 2012Earnings and Cash Flow Outlook

($ in millions except per share data) 2012 Projection (3)Reported

% change (


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Diluted Income per share $1.63 - 1.79 17% - 29%

Operating Cash Flow (1) $285 - 305 12% - 19%Capital Expenditures (1) (46) - (48)

Free Cash Flow (2) 239 - 257 12% - 20%

(1) Capital expenditures includes $16.0 million of estimated payments we will make for the renovation of our Stamford headquarters facility, which are contractually reimbursafrom the landlord. The accounting impact of these renovation payments increases both cash flow from operations and capital expenditures (investing activities) by the sameamount and as a result has no net impact on Free Cash Flow.

(2) See the attached Glossary for a discussion of Free Cash Flow.

(3) See Forward Looking Statement disclaimer on page 1 for factors that may affect our ability to achieve these results.

Projected 2012 Quarterly Phasing Reve Research revenue driven by retention rates and timin

business- Balanced renewals with 26% expected in Q1


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- Balanced renewals with 26% expected in Q1

- Fourth quarter historically the largest for new business Events revenue recognized when conferences deliver

- Symposium Series in Q4 drives phasing

- 12 events in Q1, 23 events in Q2, 13 events in Q3, and15 events in Q4

Consulting revenue is seasonal- Q2 and Q4 slightly higher volume quarters

- Q1 expected to be 23% of full year revenue

Note: See Forward Looking Statement disclaimer on page 1 for factors that may affect ourability to achieve these results.

Projected 2012 Quarterly Phasing Reve

Approximate estimated revenue phasing in 2012


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ResearchConsulting

Events

Q1 Q2 Q3 24% 25% 25%

22% 26% 24% 11% 25% 11%

Above based on midpoint of revenue guidance

Note: See Forward Looking Statement disclaimer on page 1 for factors that may affect ourability to achieve these results.


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Projected 2012 Sales, G&A and Other Exp

Depreciation and amortization of $29 - 30 million

Interest expense of $10 11 million


138/142

p $

Other income/expense of $2

3 million (primarily trangains/losses)

Tax rate projected to be between 32 and 33%

Note: See Forward Looking Statement disclaimer on page 1 for factorsthat may affect our ability to achieve these results.

Projected 2012 Quarterly Phasing Earni

Approximate income per share:


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Q1 Q2 Q3 Q419% 36%25% 20%

Above based on the midpoint of guidance

Based upon business conditions the Company may accelerpostpone expenses throughout the year which could shift ebetween quarters

Note: See Forward Looking Statement disclaimer on page 1 for factorsthat may affect our ability to achieve these results.



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139139

Long-term,Double-DigitRevenue, EPS &

CF Growth

Winnin


8


GlossaryNon-GAAP Financial MeasuresInvestors are cautioned that Normalized EBITDA and Free Cash Flow are not financial measures under generally accepted accounting prnot be construed as alternatives to any other measures of performance determined in accordance with generally accepted accounting prinfinancial measures are provided to enhance the user's overall understanding of the Company's current financial performance and the Com

Normalized EBITDARepresents operating income excluding depreciation, accretion on obligations related to excess facilities, amortization, stock-based compAdjustments and Other charges. We believe Normalized EBITDA is an important measure of our recurring operations as it excludes itemsour core operating results


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140

our core operating results.

Reconciliation of Normalized EBITDA to GAAP($ in millions) 2004 2005 2006 2007 2008

Net income (loss) $17 ($2) $58 $74 $104

Interest expense, net 1 11 17 22 19

Other (income) expense, net 7 9 1 (3) 1

Discontinued operations (1) (5) (4) (4) (3) (7)

Tax provision 16 7 26 40 48

Operating income (1) $36 $20 $98 $129 $164

Normalizing adjustments:

Depreciation, accretion and amortization 31 36 34 28 28

META integration charges

15 1

Other charges 36 29 9

SFAS No. 123(R) stock compensation expense 17 24 21

Pre-acquisition deferred revenue fair value adjustments

Acquisition and Integration Charges (2)

Normalized EBITDA (1) $103 $100 $150 $190 $213

GlossaryNon-GAAP Financial Measures

Free Cash Flow: Represents cash provided by operating activities excluding cash charges related to the acquisitions of AMRGroup, which primarily consist of certain nonrecurring costs such as severance and other exit costs (Cash Acquisition and Inadditions to property, equipment and leasehold improvements (Capital Expenditures). We believe that Free Cash Flow is athe recurring cash generated by the Companys core operations that is available to be used to repurchase stock, repay debt o


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141

future growth through new business development activities or acquisitions.

Reconciliation of Free Cash Flow to GAAP

($ in millions) 2004 2005 2006 2007 2008 20

Cash provided by operating activities $48 $27 $106 $148 $184 $1

Cash Acquisition and Integration Charges

Capital Expenditures (25) (22) (21) (24) (24) (

Free Cash Flow $23 $5 $85 124 $160 $1

Documents

2012_Gartner Investor Day (1)