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Teradata The Leader in Enterprise Data Warehousing March 2009

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Page 1: Teradata - IIS Windows Serverlibrary.corporate-ir.net/library/21/215/215054/items/326918/6D3577... · 9> Teradata’s Industry-Leading Technology Technology Demands • Extreme scalability

TeradataThe Leader in Enterprise Data Warehousing

March 2009

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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.

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Operational Systems Help Run the Business

Analytic Systems Drive Business Decisions

Operational/Transactional Systems

Transactional Databases

Oracle, SAP

Oracle, IBM, Microsoft

Servers, Storage...

Operational/Transactional Systems

Transactional Databases

Oracle, SAP

Oracle, IBM, Microsoft

Servers, Storage...

Business Intelligence/Analytical Applications

Oracle, SAP, SAS, Business Objects, Cognos, Microsoft, TeradataTeradata

Servers, Storage...

Data Warehouse DatabasesOracle, IBM, Microsoft TeradataTeradata

Business Intelligence/Analytical Applications

Oracle, SAP, SAS, Business Objects, Cognos, Microsoft, TeradataTeradata

Servers, Storage...

Data Warehouse DatabasesOracle, IBM, Microsoft TeradataTeradata

Enterprise Application Integration

Informatica, IBM, Oracle

IBM, BEA, TIBCO, Oracle, SAP

Data Acquisition & Integration

Enterprise Application Integration

Informatica, IBM, Oracle

IBM, BEA, TIBCO, Oracle, SAP

Data Acquisition & Integration

Information Technology Landscape

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The Problem

Accts. Payable

Accts. Receivable

Invoicing

Sales/Orders

Finance G/L

Customer Support

HR

Payroll

Purchasing

Order Fulfillment

Manufacturing

Inventory …

Marketing

Supply Chain

Finance

Risk Management

Maintenance

Sales

Operations

Inventory

Call Center …

Proliferation of Data Marts has resulted in fragmented data, higher costs, poor decisions

OPERATIONAL SYSTEMS DECISION MAKERS

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The Teradata Solution

Accts. Payable

Accts. Receivable

Invoicing

Sales/Orders

Finance G/L

Customer Support

HR

Payroll

Purchasing

Order Fulfillment

Manufacturing

Inventory …

Enterprise Enterprise Data Data

WarehouseWarehouse(EDW)(EDW)

OPERATIONAL SYSTEMS DECISION MAKERS

Integrated data provides data consistency, lower costs, better decisions

Marketing

Supply Chain

Finance

Risk Management

Maintenance

Sales

Operations

Inventory

Call Center …

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The Value of EDW

Data Mart Consolidation

Product Data

Transaction Data

Customer Data

Financial Data

Supplier Data Business

Value

EDW Investment

Sales + Market Basket + Customer + Profitability + InventoryAnalysis Analysis Analysis Analysis

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InventoryOrders

The Value of Integrated Data

• Fragmented data offers limited business insight, providing answers to subject-specific questions, only.

• With each new data mart, IT repeats its development efforts – and duplicates data

• Combining subject areas drives greater business insight –providing sophisticated answers to cross-functional questions

• Requires only incremental work for each new subject area

2515

Duplicated Data Shared Data

15 25 42

96

156

InventoryOrders Demand

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40%

28% 26%22%

15% 14% 13%

Revenue by Industry

Teradata Industry PenetrationGlobal 3000

Financial

29%

Comms.

28%

Retail

16%Manuf.

11%Travel & Trans.

6%

Gov't.

5%

Healthcare

4%

Other

1%

2008*

* Approximate percentages of product and professional services revenue by industry.

1%

4%

5%

6%

11%

16%

28%

29%

2008

2%Other

5%Healthcare

7%Government

6%Travel & Transportation

9%Manufacturing

19%Retail

28%Communications

24%Financial Services

2007

Comms. Retail Financial Travel & Healthcare Manufacturing GovernmentTransportation

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Teradata’s Industry-Leading Technology

Technology Demands

• Extreme scalability

• Extreme performance

• Extreme availability

• Extreme data load and access

Teradata’s Multi-dimensional Scalability

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

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Gartner MQ for Data Warehouse DBMS, 2008

The Magic Quadrant is copyrighted 23 December 2008 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphicalrepresentation 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.

Magic Quadrant for Data Warehouse DBMS, 2008

Donald Feinberg, Mark A. Beyer (23 December 2008)

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Forrester Rates Teradata #1

“Teradata provides the most scalable, mature, and flexible EDW solution on the market, and, through its recently released 2550 and 1550 platforms, offers an increasingly cost-effective solution portfolio for diverse customer requirements.”- James Kobielus, Forrester Research, Inc. 02/06/2009

The Forrester Wave™: Enterprise Data Warehousing Platforms, Q1 2009

The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of the 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 and vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions represent judgment at the time and are subject to change.

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Teradata’s Purpose-Built Platform Family

SoftwareSoftwareOnly Only

EditionEdition

Data Mart Data Mart ApplianceAppliance

551551

Extreme Data Extreme Data ApplianceAppliance

15501550

Data Data WarehouseWarehouseApplianceAppliance

25502550

Active Enterprise Active Enterprise Data WarehouseData Warehouse

55505550

PurposePurpose

Teradata on anyIntel

Platform

Test & Development

or Smaller Data Marts

Analytics on Extreme Data Volumes from

New Data Types

Entry Level Data Warehouse or Departmental

Data Marts

Enterprise Scalefor both

Strategic and Operational IntelligenceEDW/ADW

ScalabilityScalability Up to 6 TB Up to 6 TB Up to 50 PB Up to 140 TB Up to 10 PB

PricePriceStarting at $40K

Starting at $67K / TB

Starting at$16.5K / TB

Starting at $99K / TB

Starting at$200K / TB

All Powered by TeradataCovering All Sizes and Analytical Requirements

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Active (Access/Loads)

Multi-generational coexistence

Workload Mgmt. (Mixed)

Availability

Cross Functional (Complexity)

Query Concurrency

Data Scalability

Database Functionality

Active Enterprise Data Warehouse (5550)

Data Warehouse Appliance (2550)

Extreme Data Appliance (1550)

Data Mart Appliance (551)

Data Warehouse Platform Requirements

The degree of operational/active on the vertical axis and the scope/scalability on the horizontal axis determines a company’s location on the chart and its corresponding needs of the platform (shown in colored outline), based on the data warehouse criteria. The number of Xs in each grid denotes the weight of importance for that criterion, increasing as the needs move up and to the right.

XXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXX

XXXXXXXXXXXXXX

XXXXXXXXXXXXXXX

XXXXXXXXXXXX

XXXXXXXXXXXXX

XXXXXXXXX

Scope/Scalability

Op

era

tion

al/

Activ

e

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1,120 1,131

1,217 1,203

1,349

1,467

1,547

1,702

1,762

2000 2001 2002 2003 2004 2005 2006 2007 2008

Revenue Growth ... Improving Profitability$ in millions

26% 1% 8% (1)% 12% 9% 5% 10% 4%

Revenue Growth Rate

Revenue

(3)% (3)% 8% 10% 15% 19% 20% 19% 19%

Operating Margin

Operating Income

(35) (36)

96

124

199

284302

320333

2000 2001 2002 2003 2004 2005 2006 2007 2008

2000 2001

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Revenue Mix & Operating Segments

$1,762Total Revenue

24%427Maintenance Services

28%485Professional Services & Installation Services(80% - 90% PS)

48%$ 849Products (SW/HW)(more than 50% SW)

% of Total2008Revenue Mix

Maintenance and subscription revenues contribute more than 30% of Teradata’s total revenue.

Americas

Revenuemix

56%

GrossMargin

57%

EMEA

Revenuemix

26%

GrossMargin

52%

Operating Segments

APJ

Revenuemix

18%

GrossMargin

48%

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Strong/Improving Balance Sheet & Cash Flow

Balance Sheet

148%146%FCF % of Net Income

77369292Free Cash Flow

53440387Cash from Operating Income

50250200Net Income

Change20082007($ in millions)

Cash Flow

782631540Total Shareholders Equity

255246236Deferred Revenue

000Debt

1,4451,2941,075Total Assets

464301222Working Capital

4422700Cash & Short-Term Investments

Dec. 31 2008

Dec. 31 2007

Sep. 30 2007($ in millions)

STRONG LIQUIDITY$442M of Cash & Short-Term Investments ▫ $300M Credit Facility

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Looking Forward

SG&AFlat to down vs. 2008

R&DHigher than 2008, lower than 2007

26% - 27%Tax Rate26% - 27%

7% - 9% Revenue4 pts. of FX headwind*

Long-Term Objective2009 Guidance

* Based on currency rates as of February 9, 2009.

• Long-Term Revenue Growth: 7% - 9%• Operating Margin:

> Short-term:– Absorb …

– Expense of adding new sales territories: $13M in 2009– Higher R&D expense (2009 vs. 2008)

– Improve Efficiency …– Sales and PS resources, G&A expenses

– Reduce …– Discretionary costs, travel and no salary increases

> Longer-term:– Expand operating margin percentage 2010 - 2011, while continuing to

invest in …– R&D, sales territories, solutions, partnerships & consulting

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