First Quarter 2014
INVESTOR PRESENTATION
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.
Operational Systems
Help Run the Business Analytic Systems Drive Business Decisions
Oracle, SAP
Servers, Storage... Servers, Storage...
IBM, BEA, TIBCO, Oracle, SAP
Information Technology Landscape
Business Intelligence/
Analytical Applications
Oracle, SAP, SAS, Business Objects, Cognos, Microsoft, Teradata
Data Warehouse Databases
Oracle, Microsoft, IBM, Netezza
Operational/
Transactional Systems
Transactional Databases
Enterprise Application Integration
Data Acquisition
& Integration Informatica,
IBM, Oracle Oracle, IBM, Microsoft, PostgreSQL
Teradata
The Problem … The Solution
OPERATIONAL
SYSTEMS DECISION
MAKERS OPERATIONAL
SYSTEMS DECISION
MAKERS
Proliferation of data marts has resulted in fragmented data, higher
costs, poor decisions
Integrated data provides data
consistency, lower costs, better decisions
Integrated Data Warehouse
(IDW)
Unified Data Architecture
• Any User, Any Data, Any Analysis
Audio/
Video Images Text Web &
Social Machine
Logs CRM SCM ERP
Engineers Data Scientists Quants Business Analysts
Java, C/C++, Pig, Python, R, SAS, SQL, Excel, BI, Visualization, etc.
Discovery Platform Integrated Data Warehouse
Aster MapReduce Portfolio Teradata Analytics Portfolio
Capture, Store, Refine
SQL-H
Teradata Analytical Ecosystem
1000 series
2000 series 500 series
6000 series
2000 series
6000 series
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
Broadest, Most Flexible Hadoop Offerings in Market
Aster Big Analytics
Appliance Appliance for Hadoop Commodity Offering with Dell Software 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
Segment
Business 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
Continuous update and time-sensitive queries become important
OPERATIONALIZING WHAT IS
happening now?
Event-based triggering takes hold ACTIVATING MAKE it happen!
Primarily batch and some ad hoc reports
Increase in ad hoc analysis
ANALYZING WHY
did it happen?
REPORTING WHAT
happened? Analytical
modeling grows PREDICTING WHAT WILL happen?
Workload Sophistication
Scalability
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
Teradata’s Data Warehouse Evolution/Vision
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)
Schema
Sophistication Query
Freedom
Query Complexity Query
Concurrency Mixed
Workload
Query Data Volume Data
Freshness
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
Teradata – The Data Warehouse Leader
The Magic Quadrant is copyrighted March 2014 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Gartner Magic Quadrant for Data Warehouse Database Management Systems
Magic Quadrant for Data Warehouse Database Management Systems Mark Beyer, Roxanne Edjlali 3/7/14
The Forrester Wave TM
Enterprise Data Warehouse Q4 2013
The Forrester Wave ™ is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave ™ are trademarks of Forrester Research, Inc. The Forrester Wave ™ is a graphical representation of Forrester’s call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.
13 3/18/2014 Teradata Confidential
Marketing Operations
Workflow
& Rules Plan
Spend Marketing Assets
Source Data
Product/
SKU Inventory
Sales/
POS/
Franchise Supplier
Promotional/
Loyalty Data
Strategic Insight and
Marketing Processes Seamless Customer Engagement
Call Center
ATM/
Kiosk Email
Mobile
Channels Customers
Sales
Consumer Partner
Social Media Web Campaign
Design
Multi-Channel Campaign Management
Leads Campaign
Automation Teradata
Customer Data Warehouse
Aster Data Marketing Analytics
Mining
Modeling Reporting
Trending Profiling Segmenting Teradata
Aster
Customer-centric Data Management
Assets
Big Data
Teradata Applications: An Integrated
Marketing Management Solution
Teradata positioned as Leader
Gartner 2014 MRM Magic Quadrant
Magic Quadrant for MRM MQ, Kim Collins, 2/4/14
This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from Teradata. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose
95%
71%
57% 52% 50%
46%
24%
8%
39%
15% 16%
26% 23%
16%
7% 4%
Telecom Trav/Trans Media/Ent. Healthcare Retail Fin/Ins Manuf Energy &
Utilities
Revenue by Industry
Industry Penetration+
Financial 31%
Comms.
19%
Retail 14%
Manuf.
13%
Healthcare 8%
Gov't.
6%
Travel/Trans.
5%
Other 2%
Energy & Util.
1%
2013*
* Approximate percentages of product and consulting services revenue by industry.
Global Fortune 500 Global 3000
2007 2008 2009 2010 2011 2012 2013 Financial
Services 24% 29% 28% 28% 28% 30% 31%
Communications 28% 28% 23% 24% 24% 21% 19%
Retail 19% 16% 17% 16% 16% 16% 14%
Manufacturing 9% 11% 10% 13% 12% 12% 13%
Healthcare 5% 4% 8% 6% 7% 7% 8%
Travel &
Transportation 6% 6% 6% 6% 5% 6% 6%
Government 7% 5% 7% 7% 6% 6% 6%
Other 2% 1% <1% <1% 2% 2% 3%
+ Percentage of companies within each industry vertical that have begun
investing in Teradata.
96 124
199
284 302 320 333 338 415
456 580
532
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Operating Performance
1,217 1,203 1,349
1,467 1,547
1,702 1,762 1,709
1,936 2,362
2,665 2,692
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
$ in millions
(1)% 12% 9% 5% 10% 4% (3)% 13% 22% 13% 1%
Revenue
Operating Income
Operating Income
$ in millions
Revenue Mix & Operating Segments
Revenue Mix 2013 Total % of
Products (SW/HW) $1,230M 46%
Consulting Services 818M 30%
Maintenance Services 644M 24%
Total Revenue $2,692M
Approximately 40% of Teradata’s revenue is from recurring
revenue sources.
Americas
61% of total revenue Gross margin 58%
International 39% of total revenue
Gross margin 50%
Operating Segments
Strong Balance Sheet & Cash Flow
Balance Sheet
($ in millions)
Dec. 30
2007 Dec. 30
2008 Dec. 30
2009 Dec. 31
2010 Dec. 31
2011 Dec. 31
2012 Dec. 31 2013 Cash & Short-Term
Investments 270 729 661 883 772 729 695
Working Capital 301 728 609 837 717 728 787
Total Assets 1,294 3,066 1,569 1,883 2,616 3,066 3,096
Debt 0 289 0 0 300 289 278
Total Deferred Revenue 246 405 256 263 363 405 415
Total Shareholders’ Equity 631 1,779 910 1,189 1,494 1,779 1,857
Cash Flow
($ in millions) 2007 2008 2009 2010 2011 2012 2013
Net Income 200 250 254 353 353 419 377
Cash from Operating Income 387 440 455 513 513 575 510
Free Cash Flow 292 369 367 403 403 427 372
