Investor PresentationFirst Quarter 2016

2

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.

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

4

Teradata Analytical Ecosystem

1000 series

2000 series

600 series

6000 series

2000 series

6000 series

5

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

6

Broadest, Most Flexible Hadoop Offerings in Market

Aster Big Analytics

ApplianceAppliance for Hadoop

Commodity 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

7

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

8

Hybrid Cloud: Same Software, Many Options

Performance

Flexibility

Teradata Workload-Specific Platform Family

Teradata Cloud

Teradata Database on …

On-Premises Managed Cloud Public Cloud

9

36% 37%41% 43%

47%

2011 2012 2013 2014 2015

Revenue Mix

Approximate percentages of product and consulting services revenue by industry

Industry Vertical 2007 2008 2009 2010 2011 2012 2013 2014 2015

Financial Services 24% 29% 28% 28% 28% 30% 31% 31% 30%

Communications 28% 28% 23% 24% 24% 21% 19% 19% 19%

Retail 19% 16% 17% 16% 16% 16% 14% 14% 14%

Manufacturing 9% 11% 10% 13% 12% 12% 13% 13% 14%

Healthcare 5% 4% 8% 6% 7% 7% 8% 6% 10%

Travel &

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

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

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

Revenue by Type($ in millions)

2015%

of Total

Products (SW / HW) $1,057 42%

Consulting Services 780 31%

Maintenance Services 693 27%

Total Revenue $2,530

Recurring Revenue (as a % of total revenue)

10

Balance Sheet / Cash Flow / Share Repurchase Activity

Balance Sheet($ in millions)

2007 2008 2009 2010 2011 2012 2013 2014 2015

Cash and Cash

Equivalents $270 $402 $661 $883 $772 $729 $695 $834 $839

Working Capital $301 $475 $609 $837 $717 $728 $787 $577 $887

Total Assets $1,294 $1,430 $1,569 $1,883 $2,616 $3,066 $3,096 $3,132 $2,632

Debt 0 0 0 0 $301 $289 $274 $468 $780

Total Deferred Revenue $246 $283 $280 $290 $363 $405 $415 $388 $382

Total Shareholders’ Equity $631 $777 $910 $1,189 $1,494 $1,779 $1,857 $1,707 $939

Cash Flow*($ in millions)

2007 2008 2009 2010 2011 2012 2013 2014 2015

Net Income $232 $269 $271 $317 $399 $489 $459 $452 $292

Cash from Operations $387 $440 $455 $413 $513 $575 $510 $680 $401

Free Cash Flow $292 $369 $367 $330 $403 $427 $372 $551 $281

Share Repurchases($ in millions)

2007 2008 2009 2010 2011 2012 2013 2014 2015

- $176 $175 $87 $127 $281 $378 $560 $647

*Non-GAAP