investor presentation q4 2014

Fourth Quarter 2014

INVESTOR PRESENTATION

2 12/4/2014 Teradata Confidential

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.


Unified Data Architecture

• Any User, Any Data, Any Analysis

Audio/Video

Images TextWeb & Social

Machine Logs

CRM SCM ERP

Engineers Business AnalystsQuantsData Scientists

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

DataWarehouse

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 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

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

OPERATIONALIZINGWHAT IShappening now?

Event-based triggering takes hold

ACTIVATINGMAKE 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?

Worklo

ad

So

ph

isti

cati

on

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)

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


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.


Copyright © 2011 by Teradata Corporation

Marketing Operations

Workflow & Rules

Plan Spend

MarketingAssets

Source Data

Product/

SKU

Inventory

Sales/

POS/

Franchise

Supplier

Promotional/

Loyalty Data

Strategic Insight andMarketing Processes

Seamless Customer Engagement

CallCenter

ATM/ Kiosk

Email

Mobile

Channels Customers

Sales

Consumer

Partner

Social Media

Web

CampaignDesign

Multi-Channel Campaign Management

LeadsCampaign

Automation

Teradata Customer

Data Warehouse

Aster Data Marketing Analytics

MiningModeling

Reporting Trending

ProfilingSegmenting

Teradata Aster

Customer-centricData 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+

Financial31%

Comms.19%

Retail14%

Manuf.13%

Healthcare8%

Gov't.6%

Travel/Trans.5%

Other2%

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

284302

320333 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

1,7621,709

1,936

2,362

2,6652,692

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% of Total

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.

Americas61% of total revenue

Gross margin 58%

International39% of total revenue

Gross margin 50%

Operating Segments


Strong Balance Sheet & Cash Flow

Balance Sheet

($ in millions)

Dec. 31

2007

Dec. 31

2008

Dec. 31

2009

Dec. 31

2010

Dec. 31

2011

Dec. 31

2012

Dec. 31

2013

Sept. 30

2014

Cash & Short-Term Investments 270 442 661 883 772 729 695 848

Working Capital 301 475 609 837 717 728 787 735

Total Assets 1,294 1,430 1,569 1,883 2,616 3,066 3,096 3,018

Debt 0 0 0 0 300 289 274 255

Total Deferred Revenue 246 285 280 290 363 405 415 402

Total Shareholders’ Equity 631 777 910 1,189 1,494 1,779 1,857 1,842

Cash Flow

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

Net Income 200 250 254 301 353 419 377

Cash from Operating Income 387 440 455 413 513 575 510

Free Cash Flow 292 369 367 403 403 427 372

investor presentation q4 2014

Business

support teradata software

refining data

teradata software supportvalue

dell teradata software

teradata confidentialnote

teradata confidentialbroadest

data staging refining

new data types sources6