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Investor Presentation Second Quarter 2015

Q2 2015 investor presentation

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Page 1: Q2 2015 investor presentation

Investor PresentationSecond Quarter 2015

Page 2: Q2 2015 investor presentation

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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: Q2 2015 investor presentation

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Two Streamlined DivisionsThree Large Markets

Teradata TodayAligned for Accelerating Growth

Data Warehouse

Big Data Analytics

Marketing Applications

Data & Analytics Division

Marketing Applicatio

ns Division

Shared Services:Corp. Marketing, IT, Operations

Best-in-Class Consulting & Support Services Everything Available On-Premises and/or Cloud

Page 4: Q2 2015 investor presentation

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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 AnalyticsFebruary 2015

Page 5: Q2 2015 investor presentation

INTEGRATED DISCOVERY PLATFORM

INTEGRATED DATA WAREHOUSE

DATA PLATFORM

UNIFIED DATA ARCHITECTURE

MarketingExecutives

OperationalSystems

FrontlineWorkers

CustomersPartners

Engineers

DataScientists

BusinessAnalysts

Math and Stats

DataMining

BusinessIntelligence

Applications

Languages

Marketing

USERSANALYTIC TOOLS &

APPS

Search TERADATA ASTER DATABASE

TERADATA DATABASE

INTEGRATEDBIG DATA PLATFORM

TERADATA PORTFOLIO FOR

HADOOP

REAL TIME PROCESSINGERP

SCM

CRM

Images

Audio and Video

Machine Logs

Text

Web and Social

SOURCES

MarketingExecutives

OperationalSystems

KnowledgeWorkers

CustomersPartners

Engineers

DataScientists

BusinessAnalysts

USERS

Page 6: Q2 2015 investor presentation

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Teradata Analytical Ecosystem

1000 series

2000 series500 series

6000 series

2000 series

6000 series

Page 7: Q2 2015 investor presentation

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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 8TB 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 8: Q2 2015 investor presentation

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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 9: Q2 2015 investor presentation

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Continuous update and time-sensitive queries become important

OPERATIONALIZINGWHAT IS happening now?

Event-based triggering takes hold

ACTIVATING MAKE 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?

Work

load

Sop

his

ticati

on

Scalability

Stage 1

Stage 2

Stage 3

Stage 4

Stage 5

Teradata’s Data Warehouse Evolution/Vision

Page 10: Q2 2015 investor presentation

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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 11: Q2 2015 investor presentation

11© 2014 Teradata

Teradata Cloud

As a Service…..

EasyScale-up

Secure&

Reliable

High Performance

WorkloadManagement

Data Warehouse Discovery

Data Management

INTEGRATED DATA

WAREHOUSEDATA

PLATFORM DISCOVERY PLATFORM

Page 12: Q2 2015 investor presentation

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Teradata Integrated Marketing Cloud – Solutions

MARKETING PLANS

SPEND MANAGEMENT

WORKFLOW & COLLABORATION

ASSET MANAGEMENT

OFFER MANAGEMENT

MARKETING RESOURCE MANAGEMENT

INBOUND & OUTBOUND COMMUNICATIONS

REAL-TIME DECISIONING

DIGITAL DELIVERY

OPTIMIZATION

ACTIONABLE ANALYTICS

OMNI-CHANNEL MARKETING

EMAIL MARKETING

MOBILE MARKETING

SOCIAL MARKETING

WEB MARKETING

DIGITAL ANALYTICS

DIGITALMARKETING

MARKETING ANALYTICS

BUSINESS INTELLIGENCE BIG DATA ANALYTICS PREDICTIVE ANALYTICS

Teradata Marketing Applications

Page 13: Q2 2015 investor presentation

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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 & Transportation

6% 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

40% + of Teradata’s revenue is from recurring revenue sources.

Data & Analytics

92% of total revenue

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

Consulting Services 817M 30%

Maintenance Services 688M 25%

Total Revenue $2,732M  

Revenue by Type 2014 % of Total

Industry Vertical 2007 2008 2009 2010 2011 2012 2013 2014

Page 14: Q2 2015 investor presentation

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Strong Balance Sheet & Cash Flow

Cash and Cash Equivalents $270 $402 $661 $883 $772 $729 $695 $834 $881

Working Capital $301 $475 $609 $837 $717 $728 $787 $577 $741

Total Assets $1,294 $1,430 $1,569 $1,883 $2,616 $3,066 $3,096 $3,132 $3,103

Debt 0 0 0 0 $301 $289 $274 $468 $600

Total Deferred Revenue $246 $283 $280 $290 $363 $405 $415 $388 $508

Total Shareholders’ Equity $631 $777 $910 $1,189 $1,494 $1,779 $1,857 $1,707 $1,444

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 3/31/2015 ($ in millions)

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