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NetSuite and the NetSuite Logo are registered service marks of NetSuite Inc.
(Updated as of November 6, 2013)
NetSuiteCorporate Overview
Cautionary Note – Forward Looking Statements
│ 2
This presentation contains “forward-looking” statements that involve risks, uncertainties and assumptions relating to expectations, plans, and prospects including expectations relating to NetSuite’s future growth and the future growth of the cloud computing market. These statements are based on information available to NetSuite management at the time of this presentation.
Actual results could differ materially from our current expectations as a result of many factors, including, but not limited to: the market for on-demand services may develop more slowly than expected or than it has in the past; and adverse or unpredictable macro-economic conditions or reduced investments in on-demand applications and information technology spending. These and other risks and uncertainties associated with our business are described in our annual report on Form 10-K for the period ending December 31, 2012 and any subsequently filed periodic reports on Form 10-K or 10-Q.
We assume no obligation to, and do not intend to, update any forward looking statements.
Customers who purchase our services should make sure that their decisions are based on features that are currently available. Please be advised that any unreleased services or features from NetSuite referenced in this presentation or other public statements are not currently available and may not be delivered on time or at all.
• Cloud computing: The future of software• 12+ year head-start, not even a close #2• ERP: The “system of record”
– ERP has largest TAM* of any business app category– Suite approach expands TAM to multiple categories
• Execution: Next-phase initiatives succeeding– Verticalization of the suite– Moving up market and going global with OneWorld– Expand your commerce business to an omnichannel
business with NetSuite SuiteCommerce– NetSuite platform enabling partner ecosystem
Why NetSuite: For Investors
│ 3*Total Addressable Market
Powers Enterprises Powers DisruptiveInnovators
• World’s most deployed cloud ERP• Used by 16,000+ organizations• Fastest growing Financial
Management Software globally*• Used across 110+ countries
• Founded in 1998• Publicly traded on NYSE: “N”• Offices in 11 countries• 2,200+ employees• 2012 revenue: $308.8M
NetSuite: Quick TakePerformanceBackground
*Source: Gartner, March 2013
Mission StatementNetSuite Provides Companies
Around the Globe, Cloud-based,Unified Systems that Deliver
Unprecedented Capabilities toDrive their Business
NetSuite Solution
Today’s Businesses Struggle with an Application Hairball
│ 7
Warehousing
AccountingSupport
SFA
Web
One System for Running a Business
│ 8
CEO CFO
Sales Rep/Manager
Support Manager
ShippingManager
Customers
Vendors Partners
ECOMMERCE
ERP
PSA
CRMSINGLEDATA
SOURCE
EcommerceManager
Solution Overview
│ 9
• NetSuite: Modular cloud business suite– ERP, CRM, PSA, Ecommerce
• For mid-sized companies to large enterprises
• NetSuite OneWorld: Global management
• NetSuite SuiteCommerce
• NetSuite OpenAir: Enterprise PSA
• SuiteCloud Platform
│ 10
│ 11
Computer
POS
Tablet
Facebook/Social
Phone
Today’s Multi-Touchpoint World
Centralization is Required to Meet Customer/Business Needs
│ 12
│ 13
Transforms NetSuite Operational System Into a Commerce Platform That Provides Complete Flexibility to:
Support Any Touchpoint
Support Any Business Model
Innovate Rapidly to Embrace anEver-changing Landscape
Integrate the Back-office Commerce Operation
SuiteCommerce Powers The Global Expansion of Omnichannel Commerce
│ 14
Global Business Management
Global Challenges Even Greater
Warehousing
Accounting Support
SFA
Web
16│
Australia
REG
ION
GLO
BA
L
AMERICAS EMEA APAC
Worldwide HQ
Canada USA Brazil France Germany Japan ChinaUK
CO
UN
TRY
Global Challenges Even Greater
CO
UN
TRY
REG
ION
GLO
BA
LMulti-Sub, Multi-National,
Multi-Company Management
AMERICAS APACEMEA
Worldwide HQ
Global Business Management
ECOMMERCE
ERP
PSA
CRM+SINGLEDATA SOURCE
│ 19
│ 20
Currency
Quota
Forecast
Orders
Taxation
Partners
Language
Website
LOCAL
Consolidation
Sales
Revenue
Dashboards
CurrencyManagement
Compliance
Control
Multiple Websites
GLOBAL
19+ Languages, 190+ Currencies
Why Businesses Choose NetSuite:
• Last ever ERP upgrade – No “version-lock”
• Eliminates application hairball
• Deploys in months, not years
• Modern, flexible and evolving
• Dramatically lowers IT cost
│ 21
World’s #1 Global Cloud Suite
ECOMMERCE
ERP
PSA
CRMSINGLE DATASOURCE
SINGLE DATASOURCE
SINGLE DATASOURCE
Qualcomm's operations span about 140 locations worldwide with various local software systems. NetSuite OneWorld presents us with an opportunity to begin centralizing some parts of our Ecommerce systems and further streamlining the management process.
│ 22
#1 Cloud ERP for the Enterprise
NetSuite is increasingly considered a safe choice for evaluation by many of the world's largest enterprises as they look to consolidate and revise their mid-tier applications.
Source: Gartner, June 2011│ 23
• Billions of customer requests per month
• Millions ofunique loginsper quarter
• Automated upgrades
• Redundantdatacenters
Infrastructure
Application
Developer Tools
Unlimited Customization ofEnterprise Infrastructure
│ 24
Speed, Cost Efficiency and PowerGlobal Reach
150%+and 6 month
payback*Nucleus Research* Based on Nucleus Customer Case Study
• NetSuite for ERP, CRM & Ecommerce
• 100 subs in 135 locations including USA, Mexico, Brazil, Canada and Australia
• Supports M&A strategy across 140 counties
• Replaced 14 disparate business applications
10% Implementation effort vs. typical ERP50-65% IT staff efficiency savings20-50% Faster financial close time50%+ Quote-to-cash acceleration
ROI
Nucleus Research 2008 and 2010
Slashes IT Costs
Proven Results
Best Known Brands Run NetSuiteSelects NetSuite OneWorld for business management in subsidiaries and emerging markets
Expanded to international markets with NetSuite OneWorld in under four months
RMDM unit using NetSuite OneWorld and SuiteCommerce across its 13,000+ partners
Selects NetSuite SuiteCommerce to drive online revenue
Using NetSuite across 2,700+ users in 15+ countries -and across 3,000+ client projects and 1,500+ products and skills
│ 26
Cloud Suite of Choice for Leading BusinessesSoftware/Internet WD Manufacturing Services Etail/Retail Nonprofit Enterprises
The Undisputed Cloud ERP Leader
│ 28
NetSuite is the most successful ERP suite SaaSprovider operating in terms of active customers, international presence and functionality offered across the product.
Source: Gartner, June 2011
Market Opportunity
Cloud is a Priority
│ 30
Technology affecting IT
#
Of companies plan to increase cloud spend over next 12 months
50+%Faster growth than worldwide IT market
4XWorldwide and Regional Public IT Cloud Services 2011-2015 Forecast, IDC, June 2011
Reimagining IT: The Gartner 2011 CIO Survey, Gartner, January 2011The ROI Of Cloud Apps, Forrester, June 2011
$32B Addressable MarketCloud Growth Outstripping On-premise
CRM$11BERP
$21B
Forecast: Software as a Service, Worldwide, 2010-2015, 1H11 UpdateForecast: Enterprise Software Markets, Worldwide, 2008-2010, 2Q11 Update
Market Share: All Software Markets, Worldwide, 2010
Cloud ERP growth versus market
Total ERP Cloud ERP
16
14
12
10
8
6
4
2
0
7.9%
14.3%
% C
AG
R T
hro
ug
h 2
015
Cloud CRM growth versus market
Total CRM Cloud CRM
16
14
12
10
8
6
4
2
0
9.5%
12.5%
% C
AG
R T
hro
ug
h 2
015
31│
Source: Gartner
NetSuite 2012’s Fastest Growing Worldwide Financial Management System Vendor
│ 32
SAPTotvsOracleEpicorMicrosoftSageNetSuite
-3%-2%-1%4%4%
9%
49%
Top 15 WW FMS Vendors: 2012 Revenue Growth %
• NetSuite is the only pure cloud vendor in Top 15• NetSuite is #12 overall by market share • All NetSuite growth is organic
Market Share: All Software Markets, Worldwide, 2012, Published March 2013Chart created by NetSuite based on Gartner Market Share Note
NetSuite SuiteCommerce Addresses Accelerating Move to Online Retail
33
Forecast: US Online Retail Forecast, 2010 To 2015
2009 2010
% change
% of total retail
% of total retail(excluding grocery)
February 2011 “US Online Retail Forecast, 2010 To 2015”
2011 2012 2013 2014 2015
11% 13% 12% 10% 10% 8% 8%
8% 8% 9% 10% 10% 11% 11%
11% 11% 12% 13% 14% 15% 15%
$259$279
$240$218
$197$176
$157
(in billions)
│
Source: Forrester Research Online Retail Forecast, 2010 To 2015 (US)
Enterprise Opportunity
The Two-Tier Opportunity:
35│
The Rise of Two-Tier
2009 2011
60
50
40
30
20
10
0
enterprises now opting for two-tier
48%
│ 36
1: Source: How to Evaluate a Vendor's Commitment to the Cloud and SaaS2: Source: Develop a Strategic Road Map for Postmodern ERP in 2013 and Beyond
3: Source: Understand the Deployment Options for a TwoTier ERP Suite Strategy, May 2013
What is two-tier ERP?
The concept of a single ERP suite that meets all of an enterprise's needs, particularly in large, complex and diverse organizations, is no longer tenable.1
A tiered ERP suite strategy is the use of ERP suites from different vendors in two or more levels of the organization — for example, corporate headquarters and local subsidiary operations.2
Adopting a two-tier ERP strategy can dramatically reduce regional business unit implementation times, provide greater agility and improve operational costs. CIOs understanding its definition, the rationale for selection and the diverse deployment options is key to a successful implementation.3
China Vietnam
WorldwideOperations
NetSuite’s Two-Tier Solution
CORPORATERunning Oracle/SAP
E-Business Suite Financials
US Operations
NetSuite CloudRunning
NetSuite OneWorldSuiteCloud
Connect
NetSuite CloudRunning
NetSuite OneWorld
Two-Tier: Driving Business Velocity
│ 38
Mergers and Acquisitions:Cost effective ERP within subsidiaries
Divestitures:Shed legacy ERP with lean, customizable cloud ERP
Emerging Markets & Products:Rapidly deploy ERP with minimal CapEx and IT
If we used a traditional enterprise ERP platform worldwide, it would require significant capital investment and a lot of resources in each country. NetSuite provides everything we need for our subsidiaries.
— Ysmael Baysa, CFO
$50b+ Revenue Jollibee Leverages NetSuite for Two-Tier ERP
39│
Enterprise Partnerships to Drive Success
│ 40
Accenture’s unmatched industry expertise and NetSuite’s sophisticated cloud leadership pave the way forward for global enterprises.
Paul DaughertyChief Technology Architect
Financial Highlights
Sustained Revenue Growth
42│
$ millions$320.0
$300.0
$280.0
$260.0
$240.0
$220.0
$200.0
$180.0
$160.0
$140.0
$120.0
$100.0
$80.0
$60.0
$40.0
$20.0
$0.02002 2003 2004 2005 2006 2007 2008 2009 2010
$3.1 $8.3$17.7
$36.4
$67.2
$108.5
$152.5
$166.5
$193.1
2011
$308.8
$236.3
2012
2012 Financial Highlights
• Revenue increased 31% year-over-year to $308.8 million
• Operating cash flow up 50% year-over-year to $54.3 million
• Non-GAAP Net Income increased 77% to $19.1 million
│ 43
Q3 2013 Financial Highlights
• Revenue of $106.9 million, a 34% year-over-year increase
• Operating cash flow of $14.6M
│ 44
2012 Financial TrendsNon‐GAAP Net Income
($ Thousands)Non‐GAAP Gross Margin
74%
73%
72%
71%
70%
69%
68%
67%
Short‐Term Deferred Revenue($ Thousands)
Cash Flow from Operations($ Thousands)
20,00018,00016,00014,00012,00010,000
8,0006,0004,0002,000
-(2,000)(4,000)(6,000)(8,000)
2007 2008 2009 2010 20112007 2008 2009 2010 2011 2012 2012
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
-2007 2008 2009 2010 2011 2012
55,000 50,000 45,000 40,00035,00030,00025,00020,00015,00010,000
5,0000
(5,000)(10,000)
2007 2008 2009 2010 2011 2012
Q4 2013 and FY 2013 Outlook
│ 46
Q4 2013 FY 2013
Revenue $110.5M to $111.5M $410M to $411M
Non-GAAP EPS $0.07 $0.25
Operating Cash Flow $13M to $14M $57M to $58M
Recent Press Highlights• Australian Retailers and Distributors Fuel Business Growth with NetSuite Cloud
• NetSuite SuiteCommerce Recognized as a Strong Performer in B2B Commerce Suites Report by Leading Analyst Firm
• SOI Group Plots New Course for Business with NetSuite Cloud
• NetSuite Guides Lonely Planet to the Cloud
• NetSuite Transports Toll's Asian Operations to the Cloud
• Microsoft, SAP, Sage Partners Join NetSuite Solution Provider Program as Demand for Cloud Solutions Continues to Grow
• NetSuite Announces SAP Business ByDesign Sunset Migration Program
• NetSuite to Acquire TribeHR, Creating The First Integrated Cloud ERP and HCMSuite for Small And Mid-Sized Businesses
• Children's Product Industry Grows Up on NetSuite Cloud
• World's Largest Carpet Manufacturer Rolls Out NetSuite OneWorld to Power Global Growth in a Two-Tier ERP Model
• The Philippines' Largest Sugar Producer Drives Efficiency, Sweetens Bottom Line with NetSuite OneWorld
│ 47
Why NetSuite
• Cloud computing: The future of software• 12+ year head-start, not even a close #2• ERP: The “system of record”
– ERP has largest TAM* of any business app category– Suite approach expands TAM to multiple categories
• Execution: Next-phase initiatives succeeding– Verticalization of the suite– Moving up market and going global with OneWorld– Expand your commerce business to an omnichannel
business with NetSuite SuiteCommerce– NetSuite platform enabling partner ecosystem
│ 48*Total Addressable Market