concur technologies, inc. (competitive discussion) sales offsite april ’99 * confidential * 5/3/99...

Concur Technologies, Inc.

(competitive discussion)Sales Offsite April ’99

* Confidential *

5/3/99 Updated News: - They landed T&E for DaimlerChrysler

- posted their 1 millionth Desktop license

Concur Technologies, Inc.

Company Strategy Products Customers Competitive Landscape Why We’ll Win

History Started as Portable Software (Redmond,

WA) Changed name to Concur Technologies Acquired 7Software - mid ‘98

• 14-person startup in the red-hot procurement space

Leading T&E market since 1994 Partners with American Express, ADP

& Microsoft

Concur Today Leading provider of Web-based

employee-facing business applications Public Company - $800mil mkt cap 250 employees Global support - US, London, Sydney &

Toronto• Includes Asia & New Zealand partners

100% Customer Referenceability 175 customers with 900,000 end users

Financials: RevenueYEAR ENDED SEPTEMBER 30

-------------------------------------------------

1994 1995 1996 1997 1998

-------- ------- ------- ------- -------

CONSOLIDATED STATEMENT OF OPERATIONS DATA:

Revenues................................... $ -- $ 2,128 $ 1,959 $ 8,270 $17,159

Operating loss(2).......................... (602) (2,895) (4,958) (5,505) (17,760)

Net loss................................... (602) (2,890) (4,953) (5,524) (18,074)

Pro forma basic and diluted net loss per

share(3)................................ $ (0.23) $ (1.58)

-20000

-10000

0

10000

20000

1994 1995 1996 1997 1998

Revenue / Losses

RevenueNet Loss

1998 NumbersRevenue $ 17 mil-Cost of Rev 6-Sales/Mktg 12-R&D 6-G&A 5-Acq. 5

====($34mil deficit) $ -17 mil loss

Financials: Sources of Income

YEAR ENDED SEPTEMBER 30

---------------------------------------

1995 1996 1997 1998

------ ------ ------ ------

Revenues:

Licenses.................................... 98.9% 87.6% 76.7% 68.6%

Services.................................... 1.1 12.4 23.3 31.4

0

20

40

60

80

100

1995 1996 1997 1998

Licenses vs. Revenue

LicensesServices

Recent NewsInforte to Implement and Support Demand for

Concur Technologies' Employee DesktopAlliance Offers Scalable, Integrated Solutions Providing Fast Return on Investment

• Leading provider of enterprise-wide Internet solutions added to Global Alliance Network

• Support North American efforts in implementing the leading web-based Employee Business Portal

(...who the heck is Inforte)

Recent NewsConcur Integrates The American Express Corporate

Purchasing Card With CompanyStoreAmEx & Employee Desktop for End-To-End Procurement Solution

• Extension of long-term alliance to deliver leading T&E tools by integrating card data and travel services into XMS

• Leverage strong relationship to deliver an end-to-end purchasing solution to mutual customers

(…so did everyone else)

Recent NewsAlliedSignal Selects Employee Desktop to Drive Down

Operating Costs and Increase Process EfficienciesGlobal Deployment of CompanyStore to Simplify and Streamline Purchasing to 36,000 Employees

• “CompanyStore is the solution we need to escape the inefficiencies of disparate systems & create a lean procurement process”

• “...electronic routing, cataloging, reporting and payment tracking will enable us to reduce maverick spending and increase our leverage in negotiations with suppliers”

• Consolidate current library of 25 catalogs down to a more manageable number using pooled supplier information available in CompanyStore

Recent NewsAlliedSignal Selects Employee Desktop to Drive Down

Operating Costs and Increase Process EfficienciesGlobal Deployment of CompanyStore to Simplify and Streamline Purchasing to 36,000 Employees

• “CompanyStore is the solution we need to escape the inefficiencies of disparate systems & create a lean procurement process”

• “...electronic routing, cataloging, reporting and payment tracking will enable us to reduce maverick spending and increase our leverage in negotiations with suppliers”

• Consolidate current library of 25 catalogs down to a more manageable number using pooled supplier information available in CompanyStore

•$400,000

•36,000 users

• = $11 per user

•pre-SAP “throw away”

Recent News - April 27th, 1999

ADP Banks on Concur's XMS for Bottom-line SavingsLeading Employee-Facing Application to Cut T&E Costs,

Streamline Processes and Boost Employee Productivity

• One of the world’s largest computing services firms• Deployment to 12,000 employees• “Concur offers a proven implementation methodology and

streamlined expense reporting process for delivering rapid ROI” - Mike Capone, Senior Director of Financial Systems for ADP Employer Services

• Approval slashed from weeks to days• Increase back-office productivity by eliminating re-key

into their Oracle financial system(…we’ll get them)

The Strategy

Extend Leadership Position Expand Product Functionality Extend Product Suite

• Human Resources Self-service, Time and Attendance, Facilities Management

Leverage Employee Desktop to Sell Multiple Applications

Expand International Presence• Localize our applications and accommodate

accounting, customs, currency and tax requirements of foreign jurisdictions

Be the leading provider of Internet-based employee-facing applications that extend automation to employees throughout the enterprise and to partners, vendors and service providers in the extended enterprise

The Strategy Extend Relationships With Strategic Third Parties

• P-Card Providers, IT Outsourcing companies, Telecommunications providers

• Integrate CompanyStore with leading front-office supply vendors to provide our customers with greater access to those vendors

Offer Enterprise Service Provider Solutions• Offer solutions as an Internet-based ESP on a per-transaction

or subscription pricing basis to companies seeking to outsource their employee-facing business applications

• Middle-market customers with 100-750 licensed end users• Starting with XMS in the second half of calendar 1999• CompanyStore and Employee Desktop in fiscal 2000

The Tactics Sell EmployeeDesktop & CompanyStore into

existing XMS customers Attack Middle Market Roll out ECommerce Network Portal Sell value (kill Ariba on price)

Build Customer Base (give it away)

Push Microsoft advantage• Ariba, Commerce One, even Concur, may not be

around in a few years - Microsoft, and its technology will!

The Products Employee Desktop 5.0

• First Intranet Business Portal for Integrated Business Processes

CompanyStore• Automated Web Procurement

XMS Xpense Management Solution• We are the leader in Expense

Management

XMSWorld's leading software for automated travel and entertainment expense management

Results in ongoing cost reductions• Expense report preparation, approval to policy compliance,

reimbursement, and data analysis

• Reconciles foreign exchange rates and calculates international taxes

• Does the hard work for travelers, automatically sorting and calculating data, itemizing hotel bills, and pre-populating charge card and travel booking service

Incorporates proven best practices• Designed to incorporate your proven best practices

• Also those we recommend based on our years of experience with other companies

XMSWorld's leading software for automated travel and entertainment expense management

Integrates your existing systems - with room to grow• Expense data travels over the Intranet into your back-office

financial systems for maximum accuracy and quick reimbursement

• As a scalable solution, XMS is built to handle your current and future performance needs

Collects comprehensive data for informed decisions• Gathers a wealth of information to help you analyze trends,

influence budget decisions, and improve forecasting

• Summarized expense data also gives travel managers the edge in negotiating rates with hotels, airlines, and car rental agencies

CompanyStoreIn-house ECommerce site for ordering non-production office goods and services

Mission• Streamlines corporate procurement via the web• Easily order supplies and services while tracking

the information and order status from their desktops

• Establish levels of approval, control the products and services offered, define ordering limits and streamline workflow

• Quickly decreases procurement processing costs across the enterprise - Quickly implemented, easy to use, easy to administer and easy to configure


5.0 Release - March 29th•Ease of use (enhanced)•Ease of deployment (enhanced)•Graphical workflow•Document Attachments•Powerful Reporting

Built on Microsoft Technology•NT•SQL Server•Site Server Commerce Edition•BizTalk / CIP


Other features:•Cost-saving and productivity-enhancing

capabilities to companies with Oracle, PeopleSoft and SAP ERP environments and GEAC, Walker and other legacy systems

•Comprehensive administration tools for workflow and approval

•Rapid implementation methodology

Typical PO costs $60 - we can take it down to $10

Generate significant and immediate return on investment


Raising Web procurement to new heights• Does not end with a fully-automated

procurement process• Integration with Employee Desktop ties this

and other business processes together into one streamlined chain of efficiency and productivity

• Positive impact on employee productivity and on a company's bottom-line will be tremendous

The employee Business Portal• Single point of entry to employee

facing apps• Automate recurring activities

* Expense reports* Booking travel

reservations* Choosing benefit

plans* Ordering office

supplies* Other internal

systems

Employee Desktop 5.0The employee business portal to employee facing applications, information, and services

Easy access, uniform portal Keep your employees focused on their core

responsibilities Flags, reports, and organizes everything that

requires their personal attention Delivers your corporate information and

essential support services to desktops Unprecedented open framework for

integrating internally developed solutions, third-party applications, and extranet services



Reduces the need for IT support - administrative processes is captured in a central database

• Minimum support requirements• Instant deployment across the enterprise

Ensures policy compliance - honors special configuration needs for each application

• per diem rates for T&E reporting• authorized suppliers for online purchasing

High return on investment• With Employee Desktop on every desktop, your company gets the

highest possible return on investment in the shortest possible time

Customers Allied Signal

• Global 36,000 employees (…yeah right, we’ll get them too)

Hearst• Corporate Desktop and T&E driven

KnightRidder• Recent win• T&E only for 4,000 users

DaimlerChrylser • New - 5/3• T&E only - but pitched EmployeeDesktop

Over 150 customers...

Customers (and many references...!)

Aerospace and Defense Northrop Grumman

Banking ABN AMRO Citibank

Chemicals DuPont Company Monsanto

Computer Hardware Seagate Technology

Computer Software Comdisco Computer Sciences Corporation Scantron Visio

Consumer Durables Eastman Kodak Maytag Motorola Asia

Consumer Nondurables Avon Gillette SC Johnson Wax

Energy Exxon Company USA Phillips Petroleum Texaco

Financial Services Morgan Stanley TransAmerica

Food and Beverage Anheuser-Busch Nestle Seagrams

Health Services Tenet Healthcare

Manufacturing Case Corporation

Materials and Construction CSR America Weyerhaeuser

Media Ackerley Group CMP Media Metromedia International

Pharmaceuticals Merck, Sharpe & Dohme Pfizer USA Pharmacia-Upjohn

Retail JC Penney

Education Harvard University

Telecommunications AT&T Lucent Technologies Sprint

Transportation American Airlines

Case Studies: The Hearst Corporation

One of the world's largest communications companies

Will use Employee Desktop business portal for integration, XMS for T&E and CompanyStore for purchasing

Employees need only a simple Web browser to accomplish full automation

Not limited to Concur’s applications - Hearst will integrate and access additional corporate services and information through a single desktop portal

Case Studies: The Hearst Corporation

Allow Hearst to channel its employees towards preferred suppliers or travel services and remove maverick spending

Employee Desktop's robust reporting tools will also allow managers to gather organized data with which to negotiate better supplier rates for additional savings

Best-of-breed applications, combined with a unique open architecture, will deliver unprecedented levels of process efficiency and productivity gains that significantly enhance employees' work experiences

Competitive Landscape

© 1999 Giga Information Group, Inc. * All rights reserved. Reproduction or redistribution in any form without the prior written permission of Giga Information Group is expressly prohibited.

Flexibility

0 2 4 6 8 10

Clarus CorpOracle

AribaAmerican Tech

AGENTicsRightworks

ConcurCommerce One

ElcomIntelisys

Netscape

10 = Excellent0 = Poor


Ease of Use

10 = Excellent

Oracle

AribaRightworks

Clarus Corp.

Concur

American Tech

Commerce One

AGENTicsNetscape

Elcom

Intelisys0 2 4 6 8 10

0 = Poor


Ease of Administration

10 = Excellent

Rightworks

Clarus Corp.

ConcurElcom

Ariba

AGENTicsAmerican Tech

Commerce OneIntelisys

Netscape

Oracle

0 2 4 6 8 10

0 = Poor

Inter-Enterprise Process Automation

Intelisys

Oracle

Ariba1

2

3

Internet-Based Procurement Generation

Functionality

Approval Routing

Catalog Catalog ContentContent

Inter-Enterprise Process Automation

Commerce One



Top 4 Internet-Based Procurement Software Vendors

Vendor Product Name Pricing Server Platforms Placements

Ariba Technologies

ORMS 18

CommerceOne

BuySite, MarketSite $350K - $4M Win NT 20

Win NT, Sun Solaris, HP/UX

$740K- $4M

InteliSys IEC Enterprise $250K+ Win NT 14

Clarus Corp. CLARUS E-Procurement

$500K-$700K Win NT 12

Competitive Positioning Strengths

•Largest market share•Market leader for 4 years•Mature Product•Clear vision•Strong Partnerships•Proven ROI

How Concur Will Win (remember, I’m still Concur)

Ariba costs way too much• Very high price - $2 to $4million (“gouging customers”)

Ariba is not scalable Ariba has a proprietary architecture

• Java server, CIF, Business rules, no tools Ariba not fully deployed anywhere

• (as of end of 1998) Ariba's development strategy is costly

• Better suited to high-end customers with very sophisticated procurement needs

Now back to reality...

Real things to watch out for... T&E They lead with strong customer base & product

Travel integration, AmEx partnership Intranet Portal They integrates other apps (IT appeal) FUD Gouging, very large customers only

Say they have same features & same ROI PriceStarts at $100,000 (up to $400,000, down to $0)

Why Ariba will Win... ORM HTML UI They can’t do User Capture like us... ROI Proven Scalability vs. 75 users/server, unhappy custs (T.I.) eForms They can’t automate other processes... custom demo Proven RolloutsThey have no new products deployed yet Viability Customers, Analysts, Financials, Vision and ...

concur technologies, inc. (competitive discussion) sales offsite april ’99 * confidential * 5/3/99...

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