Gartner, Inc. · NYSE:IT
Gartner — Investor Day (February 2016)
182 slides from Gartner's investor day presentation, Feb 11, 2016
Slide 1: Sherief Bakr, Group Vice President, Investor Relations
0 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole us e o f the intended Gartner audience or other authorized recipients. This pre
Slide 2: Forward-looking statements
1 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Statements contained in this presentation regarding the growth and prospects of the business, the Company’s projected 2016 financial results, long - term objectives and all other statements in this pres
Slide 3: Agenda
2 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. 2 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Introduction Sherief Bakr Business Overview Gene Hall Research Peter Sondergaard Events Claire Herkes Co
Slide 4: Gene Hall, CEO
3 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole us e o f the intended Gartner audience or other authorized recipients. This pre
Slide 5: We're in the digital economy
4 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. DIGITAL ECONOMY We’re in the
Slide 6: Disruption, security, business transformation
5 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. DISRUPTION SECURITY BUSINESS TRANSFORMATION
Slide 7: Disruption
6 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. DISRUPTION
Slide 8: Security threats
7 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. SECURITY THREATS
Slide 9: Bimodal business
8 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. BIMODAL BUSINESS
Slide 10: Jeff Immelt
9 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Jeff Immelt
Slide 11: Merging the digital and physical worlds
10 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. MERGING THE DIGITAL AND PHYSICAL WORLDS
Slide 12: AND PROPRIETARY I ®
11 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. ®
Slide 13: Why Gartner
12 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Strong Value Proposition Vast Market Opportunity Winning Strategy Extraordinary Business Model Exceptional Execution
Slide 14: Strong Value Proposition
13 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Strong Value Proposition • Unique and competitively differentiated insight on clients ’ Mission Critical Priorities • Providing high client value • At very low cost
Slide 15: AND PROPRIETARY I
14 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved.
Slide 16: Extraordinary Research Insight
15 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Note: Percentages based on midpoint of 2016 revenue guidance. Extraordinary Research Insight 12% Gartner Events Business 14% Gartner Consulting Business 74% Gartner Research Business
Slide 17: Impressive, Sustained Track Record of Performance
16 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Impressive, Sustained Track Record of Performance NOTE: 2013 - 2015 Normalized for Acquisition and Integration Charges Contract Value ($M) 2006 2007 2009 2011 2010 2015 2013 2012 2014 2008 Normalized E
Slide 18: Vast Market Opportunity
17 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Vast Market Opportunity • Vast, untapped and growing • Driven by pervasive criticality and rapid rate of change in technology • Additional markets including Supply Chain and Marketing
Slide 19: A Vast, Untapped Market Opportunity
18 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. A Vast, Untapped Market Opportunity 8 Other Business Leaders 8 Marketing Function IT Function Technical Professionals CIOs IT Leaders 14 19 5 Supply Chain Function 4 Gartner CV 1.7 (in $ billions) 38 $
Slide 20: Winning Strategy
19 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Winning Strategy • Market - leading insights delivered through innovative, differentiated offerings • Operating at scale • G rowing organizational capability to capture our massive market opportunity •
Slide 21: AND PROPRIETARY I Text
20 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Text
Slide 22: Extraordinary Business Model
21 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Extraordinary Business Model • Recurring revenue with strong retention • Clients diversified across geography, industry and client size • High incremental margins • Free cash flow substantially in exce
Slide 23: Geographic, Industry and Size Diversity
22 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. United Kingdom United States Brazil Germany Japan China UAE Other countries India Strong Fundamentals: Geographic, Industry and Size Diversity
Slide 24: Geographic, Industry and Size Diversity
23 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. United Kingdom United States Brazil Germany Japan China UAE Other countries India Healthcare Manufacturing Retail Public Sector Finance & Insurance Technology Energy & Utilities Services Other industri
Slide 25: Geographic, Industry and Size Diversity
24 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Healthcare Manufacturing Retail Public Sector Finance & Insurance Technology Energy & Utilities Services Other industries Strong Fundamentals: Geographic, Industry and Size Diversity United Kingdom Uni
Slide 26: Exceptional Execution
25 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Exceptional Execution • Performance - driven leadership team • Exceptional operational execution to grow at double - digit rates • Strong cash flow and balance sheet management to drive shareholder val
Slide 27: Performance Driven Leadership Team
26 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Performance Driven Leadership Team Tenure World - Class Talent Global 7 years Avg Tenure in Role 14 years Avg Tenure at Gartner Nationality Source of Leadership [CAT EGO RY … [CAT EGO RY NA … External
Slide 28: AND PROPRIETARY I 2007 2009 2013 2014 2015
27 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. 2007 2009 2013 2014 2015
Slide 29: Impressive, Sustained Track Record of Performance
28 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Impressive, Sustained Track Record of Performance NOTE: 2013 - 2015 Normalized for Acquisition and Integration Charges Contract Value ($M) 2006 2007 2009 2011 2010 2015 2013 2012 2014 2008 Normalized E
Slide 30: Why Gartner
29 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Unique and competitively differentiated insight on clients’ Mission Critical Priorities Providing high client value At very low cost Vast, untapped and growing Driven by pervasive criticali
Slide 31: Peter Sondergaard, SVP Research
30 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole us e o f the intended Gartner audience or other authorized recipients. This pr
Slide 32: Why Gartner
31 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Strong Value Proposition Vast Market Opportunity Winning Strategy Extraordinary Business Model Exceptional Execution
Slide 33: Today's Roadmap
32 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Today’s Roadmap Changing Business & Technology Gartner Research Capabilities Innovative Gartner Products
Slide 34: Every Company is a Technology Company
33 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. 33 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Every Company is a Technology C ompany
Slide 35: Every Budget is a Technology Budget
34 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. 34 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Every Budget is a Technology Budget
Slide 36: Cost Structure Transformation, Technology Changes, Business Model Changes
35 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Cost Structure Transformation Technology Changes Business Model Changes
Slide 37: Accelerating Change and Impact of Technologies
36 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Cloud Mobile Data Digital Workplace Robotics IoT Technology Changes Accelerating Change and Impact of Technologies
Slide 38: Growth of Cloud Drives Business Transformation
37 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Cloud enables: • Use of technology for a business go
Slide 39: Gartner is Leading the IT Industry Conversation
38 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. AI Client/Server PBS CPM MES SOA Web 2.0 Virtualization Windows BI Internet Middleware ASIC PC Mobile PLM APS TCO 1980s 1990s 2000s 2010s Mobile Social Media/ Computing Cloud Computing Green IT BAM Sus
Slide 40: Gartner Assists in Cost Optimization of IT Budgets
39 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. 3.6% 3.5% 3.3% 3.2% 3.4% 3.4% 3.0% 3.1% 3.2% 3.3% 3.4% 3.5% 3.6% 3.7% 2011 2012 2013 2014 2015 2016 Cost Structure Transformation Gartner Assists in Cost Optimization of IT Budgets Source: Gartner IT K
Slide 41: Growth in Business Unit Spending on IT
40 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Cost Structure Transformation Growth in Business Unit Spending on IT Source: Gartner 2015 CIO Survey, n=2267 CIOs Non - IT IT IT Budget Business Unit Budget Energy & Utilities 84% 12% Healthcare 86% 14
Slide 42: Digital Business Carries Significant Growth in Technology Spending
41 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Metric Traditional Bank example* Digital Bank example** IT spending % revenue 6.5% 15 to 20% IT spending % of opex 8.5% 20 to 25% IT spending per employee $25k $40 to $50k Opex: Capex 2:1 9:1 Cost Stru
Slide 43: CEOs Expect Significant Transformation of Their Industry
42 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Business Model Changes CEOs Expect Significant Transformation of Their Industry Industry transformation by 2020 Substantial industry transformation Moderate industry transformation 43% 41% We will oper
Slide 44: CEOs Expect Disruption is Driven by Technology
43 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. CEO Expectations – Industry transformation by 2020 34% 43% 23% 15% 64% 18% 3% Not tech related Digital & IT related Other science & tech None at this time 2016 n=297 CEOs and Sr. Business Executives 20
Slide 45: Today's Roadmap
44 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Changing Business & Technology Gartner Research Capabilities Innovative Gartner Products Today’s Roadmap
Slide 46: Scalable, Global and Experienced Analyst Base
45 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. 196 Teams Our teams: • Minimum 15 years of experience at time of hire • 60% have 20+ years of industry experience • Become globally recognized experts • Single digit attrition rates Gartner Research Ex
Slide 47: Global Coverage
46 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research Expertise Global Coverage Over 1,125 analysts 105 a nalysts added in 2015 35 countries 647 304 174
Slide 48: Gartner Research Expertise: Inputs
47 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research Expertise Decision Makers in 10,000 Enterprises 17,000 Senior Technology Executives Primary Research Gartner Research Circle Interactions with Technology and S ervice P roviders Other
Slide 49: Written Research
48 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research Deliverables Highly Leverageable , High Margin Content Written Research 1 Access to Experts Coaching and Peer Interactions 5,000 New Documents in 2015 110,000 Archived Documents in 201
Slide 50: Access to Experts
49 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research Deliverables Agile, Scalable Access to Individual Advice • 230,000 One - on - one Interactions • Over 100,000 via Video • 4.5 out of 5 Quality Rating (5 is best) Written Research Acces
Slide 51: Coaching and Peer Interactions
50 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research Deliverables Leveraging the Growing Number of Gartner Clients 49,000 clients registered in Peer Connect 242,000 Peer Conversation View in 2015 Over 10,000 unique monthly visitors Writt
Slide 52: Today's Roadmap
51 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Changing Business & Technology Gartner Research Capabilities Innovative Gartner Products Today’s Roadmap
Slide 53: Strong Value Proposition
52 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Strong Value Proposition Save Time Save Money Gain Resources Gain Confidence
Slide 54: Market Opportunity: IT Function
53 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research – Market Opportunity IT Function 5 19 14 $38B CIOs Products Gartner for IT Executives Gartner for IT Leaders Gartner for Technical Professionals Technical Professionals IT Leaders
Slide 55: Market Opportunity: Supply Chain Function
54 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research – Market Opportunity Supply Chain Function 4 Chief Supply Chain Officers Gartner for Chief Supply Chain Officers Gartner for Supply Chain Leaders 5 19 14 Supply Chain Leaders Products
Slide 56: Market Opportunity: Marketing Function
55 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research – Market Opportunity Marketing Function 8 Chief Marketing Officer Gartner for Chief Marketing Officers Gartner for Marketing Leaders Marketing Leaders 5 19 14 Products
Slide 57: Market Opportunity: Other Business Leaders
56 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Subject matter experts Gartner Research – Market Opportunity Other Gartner for Business Leaders CEO Business leaders 8 5 19 14 Products 8 Gartner for Business Leaders Gartner for Business Leaders
Slide 58: Market Opportunity: Small Businesses, $61B Total
57 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Research – Market Opportunity Small Businesses 3 $61B Total
Slide 59: A Vast, Untapped Market Opportunity
58 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. A Vast, Untapped Market Opportunity 8 Other Business Leaders 8 Marketing Function IT Function Technical Professionals CIOs IT Leaders 14 19 5 Supply Chain Function 4 Gartner CV 1.7 (in $ billions) 38 $
Slide 60: Why Gartner
59 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Strong Value Proposition Vast Market Opportunity Winning Strategy Extraordinary Business Model Exceptional Execution
Slide 61: Claire Herkes, Group VP, Events
60 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole us e o f the intended Gartner audience or other authorized recipients. This pr
Slide 62: Why Gartner
61 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Strong Value Proposition Vast Market Opportunity Winning Strategy Extraordinary Business Model Exceptional Execution
Slide 63: Gartner Events Segment Revenue
62 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Events Segment Revenue: 2011 – 2015 Note: All figures are as reported in USD in millions reported exchange rates 148 174 199 228 252 2015 2014 2013 2011 2012
Slide 64: Gartner Events Business
63 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Events Business Differentiated live events leveraging research content
Slide 65: World's Leading Technology Conference Producer
64 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Events Business World’s Leading Technology Conference Producer 65 Events 52,000 + Attendees 6 Continents 2,350 Exhibitors
Slide 66: Our mission: the must attend event
65 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. 65 © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Our mission: Make every conference we produce the MUST ATTEND event for the communities we serve
Slide 67: Current, Relevant, Actionable
66 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Events Business Current Relevant Actionable
Slide 68: Attendee Value Proposition
67 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Attendee Value Proposition Face - to - face analyst interaction Industry leaders Unparalleled peer networking Access to leading solution providers Actionable advice
Slide 69: Attendee Value Proposition
68 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Attendee Value Proposition Industry leaders Unparalleled peer networking Access to leading solution providers Actionable advice Face - to - face analyst interaction
Slide 70: Attendee Value Proposition
69 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Attendee Value Proposition Industry leaders Unparalleled peer networking Access to leading solution providers Actionable advice Face - to - face analyst interaction
Slide 71: Attendee Value Proposition
70 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Attendee Value Proposition Industry leaders Unparalleled peer networking Access to leading solution providers Actionable advice Face - to - face analyst interaction
Slide 72: Attendee Value Proposition
71 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Attendee Value Proposition Industry leaders Unparalleled peer networking Access to leading solution providers Actionable advice Face - to - face analyst interaction
Slide 73: Exhibitor Value Proposition
72 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Exhibitor Value Proposition Face - to - face interaction with senior level attendees Cost effective lead generation
Slide 74: 2015 Gartner Events Portfolio
73 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. 2015 Gartner Events Portfolio 65 strategic conferences covering all major geographies, attracting more than 52,000 technology and business professionals
Slide 75: Symposium/ITxpo Global Events
74 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. UNITED STATES October 4 – 8 SPAIN November 8 – 12 JAPAN October 28 – 30 AUSTRALIA October 26 – 29 BRAZIL October 19 – 22 INDIA November 2 – 5 SOUTH AFRICA September 28 – 30 UNITED ARAB EMIRATES May 19
Slide 76: Symposium media coverage: IoT
75 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. IoT has the potential to be the infrastructure of digital, platform - based businesses, but deployment is in the early stages, experts say. “A platform is a business that exploits network effects. IoT
Slide 77: Symposium media coverage: tech market
76 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Peter Sondergaard , senior vice president of research at Gartner, says that the global tech market will regain strength in 2016, thanks to the launch of Windows 10 and Data Center Systems market growth
Slide 78: Symposium media coverage: Volvo CIO
77 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Interviewed at Gartner Symposium/ ITxpo , Klas Bendrik , senior vice - president and CIO of Volvo Car Group, said “The IT department is moving way beyond being an internal service provider for the busi
Slide 79: #GartnerSYM Reached 27M people
78 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. # GartnerSYM Reached 27M people
Slide 80: 2015 CIO Event Portfolio
79 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. 2015 CIO Event Portfolio 6,600 CIO's
Slide 81: Why Gartner
80 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Strong Value Proposition Vast Market Opportunity Winning Strategy Extraordinary Business Model Exceptional Execution
Slide 82: Per Anders Waern, SVP Consulting
81 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole us e o f the intended Gartner audience or other authorized recipients. This pr
Slide 83: Gartner Consulting Business
82 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Consulting Longer - term differentiated engagements leveraging Gartner research Gartner Consulting Business
Slide 84: Why Gartner
83 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Strong Value Proposition Vast Market Opportunity Winning Strategy Extraordinary Business Model Exceptional Execution
Slide 85: Independent and Objective, Research Powered, Benchmark Enabled
84 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Consulting Independent and Objective Powered by Gartner Research Proprietary Benchmark Enabled Gartner Consulting Business
Slide 86: Highest-ever backlog
85 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Consulting Highest - ever backlog Backlog +19% 119 2014 2015 99
Slide 87: Managing Partners
86 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Managing Partners 18%
Slide 88: Managing Partners
87 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Managing Partners
Slide 89: Managing Partners: Long term, trust based relationships
88 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Managing Partners Long term, trust based relationships Repeat business
Slide 90: Solution Innovation
89 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Consulting Solution Innovation Gartner Consulting Business
Slide 91: Best practices, Contract Optimization, Benchmarks
90 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Consulting Best practices for key technology initiatives Contract Optimization Benchmarks Gartner Consulting Business
Slide 92: Best Practices For Key Technology Initiatives
91 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Best Practices For Key Technology Initiatives Research driven Benchmark informed From good to great
Slide 93: Right Products, Right Terms, Right Pricing
92 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Right Products, Right Terms, Right Pricing Digital economy drives new contract models Increased client uncertainty
Slide 94: Right Products, Right Terms, Right Pricing
93 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Right Products, Right Terms, Right Pricing Needs assessment Negotiation of money saving terms and conditions Focus on bottom line impact $360M
Slide 95: Benchmark Analytics
94 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Benchmark Analytics >5K IT environments annually Roadmap of priorities Become digital ready
Slide 96: Independent and Objective, Research Powered, Benchmark Enabled
95 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Consulting Independent and Objective Powered by Gartner Research Proprietary Benchmark Enabled Gartner Consulting Business
Slide 97: Experienced Senior Practitioners
96 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Experienced Senior Practitioners $ 391K average annual revenue per head 606 billable Consultants
Slide 98: Experienced Senior Practitioners and Growing Access
97 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Experienced Senior Practitioners and Growing Access to Leading Organizations Unique Gartner Insights Professional Development
Slide 99: Why Gartner
98 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Strong Value Proposition Vast Market Opportunity Winning Strategy Extraordinary Business Model Exceptional Execution
Slide 100: David Godfrey, SVP Worldwide Sales
99 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole us e o f the intended Gartner audience or other authorized recipients. This pr
Slide 101: Why Gartner
100 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Strong Value Proposition Vast Market Opportunity Winning Strategy Extraordinary Business Model Exceptional Execution
Slide 102: Gartner Sales
101 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Sales
Slide 103: Gartner Sales
102 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Sales 2,171 quota - bearing sales associates • 295% growth since 2005 • Roughly split between NA and ROW Profile of a Ga r tner Account Executive • Highly motivated • Great sales DNA • Passion
Slide 104: Geographic, Industry and Size Diversity
103 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Healthcare Manufacturing Retail Public Sector Finance & Insurance Technology Energy & Utilities Services Etc. Strong Fundamentals: Geographic, Industry and Size Diversity United Kingdom United States
Slide 105: Gartner Sales
104 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Sales 2,171 quota - bearing sales associates • 295% growth since 2005 • Roughly split between NA and ROW Profile of a Ga r tner Account Executive • Highly motivated • Great sales DNA • Passion
Slide 106: A Vast, Untapped Market Opportunity
105 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. A Vast, Untapped Market Opportunity 8 Other Business Leaders 8 Marketing Function IT Function Technical Professionals CIOs IT Leaders 14 19 5 Supply Chain Function 4 Gartner CV 1.7 (in $ billions) 38
Slide 107: 110,000 Enterprises in our Database
106 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. 110,000 Enterprises in our Database
Slide 108: Clients/year
107 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Clients/ year 30
Slide 109: Current Enterprise Penetration
108 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. 10% 10,796 Current Enterprise Penetration
Slide 110: Client Enterprise and Contract Value Growth
109 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Client Enterprise and Contract Value Growth # Of Client Enterprises +838 +14% FX Neutral Research Contract Value
Slide 111: Research Sold as Subscriptions to Individuals
110 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. … … … … … Research Sold as Subscriptions to Individuals • Role - based • Recurring revenue IT Leaders CIO Technical Professionals
Slide 112: Research Sold as Subscriptions to Individuals
111 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. … … … … … Research Sold as Subscriptions to Individuals • Role - based • Recurring revenue IT Leaders CIO Technical Professionals
Slide 113: Research Sold as Subscriptions to Individuals
112 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. … … … … … Research Sold as Subscriptions to Individuals IT Leaders CIO Technical Professionals
Slide 114: Research Sold as Subscriptions to Individuals
113 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. … … … … … Research Sold as Subscriptions to Individuals IT Leaders CIO Technical Professionals $1M
Slide 115: Why Gartner
114 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Strong Value Proposition Vast Market Opportunity Winning Strategy Extraordinary Business Model Exceptional Execution
Slide 116: Sales Strategy to Capture Market Opportunity
115 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Sales Strategy to Capture Market Opportunity Coverage Capacity Effectiveness
Slide 117: Sales Strategy: Capacity
116 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Capacity Sales Strategy to Capture Market Opportunity Coverage Effectiveness
Slide 118: Sales Strategy: Coverage
117 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Coverage Sales Strategy to Capture Market Opportunity Capacity Effectiveness
Slide 119: Sales Strategy: Effectiveness
118 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Effectiveness Sales Strategy to Capture Market Opportunity Coverage Capacity
Slide 120: Sales Strategy: Capacity
119 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Capacity Sales Strategy to Capture Market Opportunity Grow sales headcount 15 – 20% annually Architected recruitment and training plan
Slide 121: Direct Quota Bearing Headcount
120 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Capacity 663 806 928 942 1,049 1,268 1,417 1,643 1,881 2,171 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Direct Quota Bearing Headcount Sales Strategy to Capture Market Opportunity Grow sales he
Slide 122: Sales Strategy: Coverage
121 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Coverage Sales Strategy to Capture Market Opportunity Matched to global opportunity Emphasizing client intimacy Agile territory planning capability
Slide 123: Research Client Enterprises and Contract Value
122 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. 101 111 130 120 127 138 146 157 161 163 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Average Contract Value per Enterprise ($K) 6,318 6,798 6,400 6,544 7,680 8,070 8,630 9,071 9,958 10,796 2006 2
Slide 124: Sales Strategy to Capture Market Opportunity
123 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Sales Strategy to Capture Market Opportunity Coverage Capacity Effectiveness
Slide 125: Sales Strategy: Effectiveness
124 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Sales Strategy to Capture Market Opportunity Recruiting Great Talent World Class Training Proprietary Tools and Best Practices Effectiveness
Slide 126: Gartner Sales: A Great Place to Work
125 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Sales: A Great Place to Work Gartner reputation Best Place To Work, Employees’ Choice Winner 2013, 2014, 2015 and 2016 One of Forbes "Most Innovative Growth Companies" 2015 Top 25 Most Sociall
Slide 127: Gartner Sales: A Great Place to Work
126 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner Sales: A Great Place to Work • Strategic relationships • Collaboration • Leading tools and best practices • Innovative products Gartner culture
Slide 128: Why Gartner
127 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Strong Value Proposition Vast Market Opportunity Winning Strategy Extraordinary Business Model Exceptional Execution
Slide 129: Craig Safian, Chief Financial Officer
128 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole us e o f the intended Gartner audience or other authorized recipients. This p
Slide 130: Why Gartner
129 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Strong Value Proposition Vast Market Opportunity Winning Strategy Extraordinary Business Model Exceptional Execution
Slide 131: Today's Roadmap
130 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Today’s Roadmap Long – Term Growth Sales Productivity Cash Flow Generation Capital Deployment Strong Fundamentals
Slide 132: Strong Fundamentals
131 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Strong Fundamentals Vast, growing and untapped market opportunity Predictable, attractive, cash generative business model T rack record of success Diverse client - base – regional, industry, size
Slide 133: A Vast, Untapped Market Opportunity
132 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. A Vast, Untapped Market Opportunity 8 Other Business Leaders 8 Marketing Function IT Function Technical Professionals CIOs IT Leaders 14 19 5 Supply Chain Function 4 Gartner CV 1.7 (in $ billions) 38
Slide 134: Strong Fundamentals: Research Largest Portion of Revenue
133 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Strong Fundamentals: Research Largest Portion of Revenue 56% 69% 70% 71% 72% 73% 29% 21% 19% 18% 17% 15% 14% 10% 11% 11% 11% 12% 2011 $1,469M 2006 $1,037M 2015 Research Consulting Events $2,163M 2014
Slide 135: Research Business Model: Growth
134 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Strong Fundamentals: Research Business Model 15% 12% Events Research Consulting $2,163M 73% Growth 2015 100%
Slide 136: Research Business Model: Recurring revenue
135 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Strong Fundamentals: Research Business Model 15% 12% Events Research Consulting $2,163M 73% Recurring revenue business 2015 100%
Slide 137: Research Business Model: High renewal rates
136 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Strong Fundamentals: Research Business Model 15% 12% Events Research Consulting $2,163M 73% High renewal rates Client Retention 84% Wallet Retention 105% 2015 100%
Slide 138: Research Business Model: High incremental margins
137 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Strong Fundamentals: Research Business Model 15% 12% Events Research Consulting $2,163M 73% High incremental margins Research 70% 2015 100%
Slide 139: Research Business Model: Upfront invoicing, negative working capital
138 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Strong Fundamentals: Research Business Model 15% 12% Events Research Consulting 2015 $2,163M 73% Upfront invoicing and collection/ negative working capital 421 464 491 552 581 (766) 2012 (228) (692) 2
Slide 140: Research Business Model: Strong Cash Flow Generation
139 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Strong Fundamentals: Research Business Model • Growth • Recurring revenue business • High renewal rates • High incremental margins • Upfront invoicing and collection Strong Cash Flow Generation
Slide 141: Strong Fundamentals: Track Record of Success
140 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Strong Fundamentals: Track Record of Success $0.73 $3.72 2009 2014 2010 2011 2013 2012 2015 2007 2006 2008 Normalized EBITDA ($M) Free Cash Flow per share ($) Earnings p er Share ($) Total Revenue ($M
Slide 142: Strong Fundamentals: Track Record of Success
141 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. 640 1,761 Strong Fundamentals: Track Record of Success Quota Bearing Headcount Contract Value per Client Enterprise ($K) # Of Client Enterprises Contract Value ($M) 2006 2007 2009 2011 2010 2015 2013
Slide 143: Strong Fundamentals: 2016 Outlook
142 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Strong Fundamentals: 2016 Outlook 279 315 345 386 408 455 +12% 2016 Mid - point 2015 2014 2013 2012 2011 2.16 2.46 2.95 3.44 3.72 4.33 +16% 2016 Mid - point 2015 2014 2013 2012 2011 1.39 1.73 1.97 2.2
Slide 144: Geographic, Industry and Size Diversity
143 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. United Kingdom United States Brazil Germany Japan China UAE Other countries India Strong Fundamentals: Geographic, Industry and Size Diversity
Slide 145: Geographic, Industry and Size Diversity
144 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. United Kingdom United States Brazil Germany Japan China UAE Other countries India Healthcare Manufacturing Retail Public Sector Finance & Insurance Technology Energy & Utilities Services Other industr
Slide 146: Geographic, Industry and Size Diversity
145 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Healthcare Manufacturing Retail Public Sector Finance & Insurance Technology Energy & Utilities Services Other industries Strong Fundamentals: Geographic, Industry and Size Diversity United Kingdom Un
Slide 147: Today's Roadmap
146 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Today’s Roadmap Long – Term Growth Sales Productivity Cash Flow Generation Capital Deployment Strong Fundamentals
Slide 148: Total Contract Value
147 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Total Contract Value • Research Contract Value – current method • Total Contract Value – new method Better measure of cash flow capability and of true productivity Completely aligned with how we measu
Slide 149: Total Contract Value – Illustrative Example
148 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Total Contract Value – Illustrative Example CIO Service/$100,000 Access to CIO Research Event Access Tools Access to IT Research
Slide 150: Total Contract Value – Illustrative Example
149 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Total Contract Value – Illustrative Example CIO Service/$100,000 $100K Total Contract Value Access to CIO Research Event Access Tools Access to IT Research $97K Research Contract Value Access to CIO R
Slide 151: Total Contract Value
150 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Total Contract Value 1,549 Q4 2014 1,492 Q1 2015 1,514 Q2 2015 Q4 2015 1,697 Q3 2015 1,604 Q3 2014 Q2 2014 Q1 2014 1,345 1,317 1,395 13% 13% 13% 15% 15% 15% 15% 14% Growth Rate Note: Total Contract Va
Slide 152: Sales Productivity – Growth in Sales Headcount
151 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Sales Productivity – Growth in Sales Headcount 663 806 928 942 1,049 1,268 1,417 1,643 1,881 2,171 2006 2008 2010 2007 2009 2014 2015 2012 2013 2011 Direct Quota Bearing Headcount Single largest inves
Slide 153: Sales Productivity – Measuring Progress
152 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Sales Productivity – Measuring Progress Net contract value increase ( NCVI or growth) per Account Executive (AE) • Focus on growth per AE as much of our business is renewable Measure on a rolling four
Slide 154: Sales Productivity – Measuring Progress
153 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Sales Productivity – Measuring Progress Note: For illustrative purposes Closing CV per AE Opening CV per AE New Business $1,150k $1,000k $150k $300k Calculating NCVI per sales person (AE) Illustrative
Slide 155: Sales Productivity – Measuring Progress
154 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Sales Productivity – Measuring Progress Rolling Four Quarter FX Neutral CV Growth Opening period sales headcount Average Productivity (NCVI) per AE How to calculate sales productivity:
Slide 156: Sales Productivity – 2015 Calculation
155 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Sales Productivity – 2015 Calculation $205M 2015 Opening CV 2015 NCVI $1,697M 2015 Closing CV $1,492M 2015 FX Neutral NCVI $205M Opening 2015 direct quota bearing headcount 1,881 Average Productivity
Slide 157: Sales Productivity
156 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Sales Productivity Note: Total Contract Value method; presented at 2016 FX rates $104k $100k $106k $115k $116k $114k $115k $109k Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q3 2015 Q2 2015 Q4 2015
Slide 158: Today's Roadmap
157 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Long – Term Growth Sales Productivity Cash Flow Generation Capital Deployment Strong Fundamentals
Slide 159: Small Improvements Can Have a Large Impact
158 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. $5k improvement per year (FX Neutral) 15% 15% 16% 16% 17% $10k improvement per year (FX Neutral) 15% 16% 18% 18% 19% Sales Productivity – Small I mprovements Can Have a Large Impact Notes: 1 ) Sales f
Slide 160: Illustrative Model: Productivity Scenarios
159 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. $3.3B $1.7B $3.5B Year 4 Year 3 Year 2 Year 0 Year 1 Year 5 $10k improve/year Flat Productivity $5k improve/year $3.8B Illustrative Model: Productivity Scenarios
Slide 161: Today's Roadmap
160 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Today’s Roadmap Long – Term Growth Sales Productivity Cash Flow Generation Capital Deployment Strong Fundamentals
Slide 162: Cash Flow Conversion: Definition of Free Cash Flow
161 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Cash Flow Conversion: Definition of Free Cash Flow Cash provided by operating activities $ 346M 2015 Less: Capital expenditures (46)M Add: Cash acquisition and integration payments 17M Free Cash Flow
Slide 163: Cash Flow Conversion
162 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Cash Flow Conversion Dec. Dec. Mar. Jun. Sep. • Contracts invoiced and collected well in advance of revenue recognition and delivery. Client buys $100K contract $100K invoice sent Client pays $100K
Slide 164: Cash Flow Generation
163 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Cash Flow Generation Note: See Company filings for definitions of Net Income excluding acquisitions and integration costs and Free Cash Flow Free Cash Flow Net Income Note: 2013 – 2015 Net Income Norm
Slide 165: Cash Flow Conversion: FCF as % of Net Income
164 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Cash Flow Conversion Note: 2013 – 2015 Net Income Normalized for Acquisition and Integration Costs Note: See Company filings for definitions of Net Income excluding acquisitions and integration costs
Slide 166: Cash Flow Conversion: FCF as % of EBITDA
165 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Cash Flow Conversion 78% 81% 2014 2013 81% 2012 75% 2011 76% 2015 79% FCF as % of Normalized EBITDA 2016 Mid - point Note: See Company filings for definitions of Normalized EBITDA and Free Cash Flow
Slide 167: Cash Flow Generation: FCF/Share
166 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Cash Flow Generation: FCF/Share $2.16 $2.46 $2.95 $3.44 $3.72 $4.33 2013 2011 2012 +15% 2014 2015 2016 Mid - point Note: Used full year fully diluted weighted average shares outstanding Note: See Comp
Slide 168: Today's Roadmap
167 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Today’s Roadmap Long – Term Growth Sales Productivity Cash Flow Generation Capital Deployment Strong Fundamentals
Slide 169: Capital Deployment
168 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Capital Deployment Strategic Acquisitions Share Repurchases
Slide 170: Capital Deployment: Strategic Acquisitions
169 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. ( $63M ) Capital Deployment: Strategic Acquisitions Strategic Acquisitions ~$673M on eight deals 2005 ( $160M ) 2009 2012 ($ 18M) 2014 ( $135M ) ($ 56M) ( $6M) 2015 ($234M total) Note: Acquisition val
Slide 171: Capital Deployment: Strategic Acquisitions
170 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Capital Deployment: Strategic Acquisitions Augment/Accelerate Core IT Business New Markets Techquisitions
Slide 172: Capital Deployment: Share Repurchases
171 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Capital Deployment: Share Repurchases Annual share repurchase a ctivity ( $ millions) 212 111 197 432 509 2013 2015 2014 2011 2012 Note: Company has $1.123B remaining on its share repurchase authoriza
Slide 173: Capital Deployment: Share Repurchases
172 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Capital Deployment: Share Repurchases - 17% 2015 EOY 100 M 2010 EOY 84 M Note: Q4 Fully Diluted S hares O utstanding Significantly reduced shares outstanding Note: Weighted Average Price / Share Repur
Slide 174: Cumulative Sources and Uses of Cash
173 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Cash & Capital Deployment: Cumulative Sources and Uses Note: See Company filings for a definition of Free Cash Flow $1.8B Free Cash Flow Strategic Uses Acquisitions Share Re - purchase Cumulative Sour
Slide 175: Capital Deployment: Capital Structure
174 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Capital Deployment: Capital Structure 200 205 205 405 825 2015 2014 2013 2012 2011 57 - 95 - 219 40 452 2015 2014 2013 2012 2011 Gross Debt ($M) Net Debt ($M)
Slide 176: Capital Deployment: Capital Structure
175 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Capital Deployment: Capital Structure 0.2x - 0.3x - 0.6x 0.1x 1.1x 2014 2015 2013 2012 2011 Net Debt / EBITDA Ratio
Slide 177: Today's Roadmap
176 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Today’s Roadmap Long – Term Growth Sales Productivity Cash Flow Generation Capital Deployment Strong Fundamentals
Slide 178: Why Gartner
177 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Strong Value Proposition Vast Market Opportunity Winning Strategy Extraordinary Business Model Exceptional Execution
Slide 179: Future Growth: Long-term Growth Objectives
178 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Future Growth: Long - term Growth Objectives Annual Total Revenue Growth 12 – 17% Research 15 – 20% Consulting Events 5 10% – 3 8% –
Slide 180: Why Gartner
179 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Unique and competitively differentiated insight on clients’ Mission Critical Priorities Providing high client value At very low cost Vast, untapped and growing Driven by pervasive critical
Slide 181: Select Sales Productivity Data at 2016 Rates
180 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Select Sales Productivity Data at 2016 Rates Note: Total Contract Value method; presented at 2016 FX rates 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Rolling 12 - Month NCVI $151M $154M $170M $189M $197M $204M
Slide 182: Why Gartner
181 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Why Gartner Strong Value Proposition Vast Market Opportunity Winning Strategy Extraordinary Business Model Exceptional Execution