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August 2016 INVESTOR PRESENTATION

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Page 1: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

August 2016

INVESTOR PRESENTATION

Page 2: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

This presentation contains statements, including statements about future plans and expectations, which constitute forward-

looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking

statements are generally stated in terms of the Company’s plans, expectations and intentions. These statements are based

on the current beliefs, expectations and assumptions of the Company’s management and the current economic

environment. Forward looking statements are inherently subject to significant economic, competitive and other

uncertainties and contingencies, many of which are beyond the control of management. The Company cautions that these

statements are not guarantees of future performance. There are or will be important known and unknown factors and

uncertainties that could cause actual results to differ materially from those expressed or implied in the forward looking

statements. These factors, include, but are not limited to, risks associated with the global economic environment on the

Company’s customer base (particularly financial services firms) potentially impacting our business and financial condition;

competition; changes in technology and market requirements; decline in demand for the Company's products; inability to

timely develop and introduce new technologies, products and applications; difficulties or delays in absorbing and

integrating acquired operations, products, technologies and personnel; loss of market share; an inability to maintain certain

marketing and distribution arrangements; and the effect of newly enacted or modified laws, regulation or standards on the

Company and its products; and other factors and uncertainties discussed in our filings with the U.S. Securities and

Exchange Commission (the “SEC”). You are encouraged to carefully review the section entitled “Risk Factors” in our latest

Annual Report on Form 20-F and in our other relevant filings with the SEC for additional information regarding these and

other factors and uncertainties that could affect our future performance, and undue reliance should not be placed upon

these statements. The forward-looking statements contained in this presentation are made as of the date hereof, and the

Company undertakes no obligation to update or revise them, except as required by law.

2

Forwards Looking Statement Disclaimer

Page 3: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

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NASDAQ:

NICE

>20,000Customers

>35 ~1300 ~3,700Employees

1986Founded

>80%Fortune

100 customerscountries

>150

R&D ProfessionalsLocal Offices

Page 4: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

FINANCIAL CRIME & COMPLIANCE

PROTECTING people’s money and assets

CUSTOMERINTERACTIONS

Making people’s

EXPERIENCES timely and seamless

Page 5: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

Expand multi channel offering

Expand large and growing portfolio solutions

Further increase analytics

Grow cloud solutions

Increase presence in the mid-market

INNOVATION IN ACTION

CREATING PERFECT

EXPERIENCES

NICE ENGAGE & VIDEO INTERACTIONS

TOTAL VOICE OF THE CUSTOMER

ROBOTICS AUTOMATION

IVR JOURNEY OPTIMIZATION

Page 6: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

Gain dominance in the world of risk operations

Expand large and growing portfolio solutions

Serve tier 2 financial institutions and services

Expand into non-FS verticals

INNOVATION IN ACTION

PROTECTING PEOPLE’S

MONEY

HOLISTIC SURVEILLANCE

FRAUD & CYBER MANAGEMENT HUB

NOTIFICATIONS & ASSESTATIONS

Page 7: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

NICE 2020

LARGE PORTFOLIO

CLOUD

ENTERPRISE SOFTWARE COMPANY

ANALYTICS

7

Page 8: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

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DIVESTITUREOF SECURITY DIVISIONS

ENTERPRISE SOFTWARE COMPANY

ENTERPRISESOFTWARE

BUSINESS MODEL

ALIGNEDBUSINESSES ACROSS ALL DIMENSIONS

TECHNOLOGIES, CUSTOMERS

AND MARKETS

Page 9: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

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ACCELERATED

INNOVATIONACQUIRED

PORTFOLIOENHANCED

GO-TO-MARKET

HOLISTIC SURVEILLANCE

NICE INVESTIGATE

BACK OFFICE SUITE

REAL TIME AUTHENTICATION

MULTICHANNEL CUSTOMER SERVICES

NICE ENGAGE

TOTAL VOICE OF THE CUSTOMER

IVR JOURNEY

ANALYTICS

EMPLOYEE ENGAGEMENT

MANAGER

NICE ACTIMIZE NOTIFICATIONS &ATTESTATIONS

ROBOTIC AUTOMATION

MASTERING LARGE PORTFOLIO

Page 10: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

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INFUSING ANALYTICS

NEXIDIA: ANALYTICS WITH NO LIMITS

ANALYTICSACROSS ENTIRE PORTFOLIO

ROBUSTANALYTICSPLATFORM

Page 11: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

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ANALYTICS Deployment

AccuracyIntegration

Speed

Scalability

with no limits

Page 12: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

12

CLOUDIFYING NICE

Page 13: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

Siloed purchases, separate vendors

Compromise:

Powerful point-solution VS.

Limited suite offerings

The de facto system integrator of

the industry

Legacy purchase model:

Always buy for max capacity

Upfront investment

Long-term commitment

The Continuously Evolving Contact Center

Page 14: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

The Continuously Evolving Contact Center

It’s time to stop catching-up

and get ahead of the curve!

Page 15: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

ANALYTICS

Omni-Channel CC

WFO

A New VISION for Customer Service

From the Contact Center to the Experience Center

•The market’s most complete omni-channel CC in the cloud

•Powered by the most comprehensive WFO portfolio

•Infused by advanced analytics

•Seamlessly integrated

•Fully cloud- easy to implement, low TCO, highly scalable and ELASTIC

Page 16: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

2 by 2 by 2 Opportunity

Increases for

NICE Total

Addressable

Market

2

2

2

x

x

8

double portfolio

double market segments

double customer lifetime value

TAM increases 6x to 8x:

$15 billion opportunity

Page 17: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

$216

$235REVENUE ($M, Non-GAAP)

* All numbers exclude results from the Intelligence and the Physical Security divisions

Strong Growth – Q2 2016

22,3%

24,0%

1.7pp

OPERATING MARGIN (Non-GAAP)

$0,64

$0,79

23.4%

EARNINGS PER SHARE ($, Non-GAAP)

69,2%

70,4%

1.2 pp

GROSS MARGIN (Non-GAAP)

9.1%

Page 18: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

Business Model: Strong Base of Recurring Revenue (Q2 2016)

~27%

~22%~51%

Recurring

Revenue

Professional

Services

Revenue

Product

Revenue

Page 19: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

42%

50%

56%

48%

65%

Q2 12 Q2 13 Q2 14 Q2 15 Q2 1619

Analytics (% of New Bookings)

Page 20: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

73%

27%

FINANCIAL CRIME AND COMPLIANCE

CUSTOMER INTERACTIONS

Business Unit Breakdown(Non-GAAP) – Q2 2016

Page 21: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

69%

20%

11%

EMEA

APAC

AMERICAS

Global Presence(Non-GAAP) – Q2 2016

Page 22: INVESTOR PRESENTATION - NICE · PDF filemarketing and distribution arrangements; and the effect of newly enacted or modified laws, ... HOLISTIC SURVEILLANCE NICE INVESTIGATE BACK OFFICE

THANK

YOU