Gartner, Inc. · NYSE:IT
Gartner — Investor Day (February 2012)
142 slides from Gartner's investor day presentation, Feb 16, 2012
Slide 1: Gartner
Gartner
Slide 2: Brian Shipman, GVP Investor Relations
Brian Shipman GVP Investor Relations Gartner
Slide 3: Forward Looking Statements
Forward Looking Statements Statements contained in this presentation regarding the growth and prospects of the business, the Company’s projected 2011 financial results, long-term objectives and all other statements in this presentation other than recitation of historical facts are forward looking st
Slide 4: Gartner
Gartner
Slide 5: Agenda
Agenda Business Overview Gene Hall Research Peter Sondergaard Events Alwyn Dawkins Consulting Per Anders Waern Break Sales David Godfrey Financial Overview Chris Lafond Summary / Q&A Gene Hall and Chris Lafond
Slide 6: Gartner
Gartner
Slide 7: Extraordinary Research Insight Through Three Business Segments
Extraordinary Research Insight Extraordinary Research Insight Through Three Business Segments
Slide 8: Research Business: 70% of Revenue
70% Extraordinary Research Insight Note: Percentages based on midpoint of 2012 revenue guidance. Gartner Research Business Extraordinary Research Insight Through Three Business Segments
Slide 9: Consulting Business: 20% of Revenue
20% 70% Extraordinary Research Insight Note: Percentages based on midpoint of 2012 revenue guidance. Gartner Consulting Business Gartner Research Business Extraordinary Research Insight Through Three Business Segments
Slide 10: Events Business: 10% of Revenue
20% 70% 10% Extraordinary Research Insight Note: Percentages based on midpoint of 2012 revenue guidance. Gartner Consulting Business Gartner Research Business Gartner Events Business Extraordinary Research Insight Through Three Business Segments
Slide 11: A Vast, Untapped Market Opportunity
12 18 5 4 8 A Vast, Untapped Market Opportunity Source: Gartner internal estimates. $1.1 Billion** * technology, professional services, telecommunications and investors ** 2011 ending contract value $47 Billion 2012 Other* Front-line IT Professionals Supply Chain CIOs IT Functional Leaders
Slide 12: Winning Growth Strategy
Extraordinary Research Insight Strong Sales Capability High-Value Differentiated Offerings Performance-Driven Leadership Team Continuous Improvement and Innovation World-Class Service Winning Growth Strategy
Slide 13: Extraordinary Research Insight: 2005 to Today
2005 Today Extraordinary Research Insight Focus on Critical Topics V2 V3 V4 V5 V6 V7 Expanded Coverage Areas Enterprise Architecture Supply Chain Tech Professionals Analyst Time Optimization V1 V2 V3
Slide 14: 2005 to Today
2005 Today Extraordinary Research Insight Strong Sales Capability High-Value, Differentiated Offerings World Class Service
Slide 15: Winning Growth Strategy
Extraordinary Research Insight Strong Sales Capability High-Value Differentiated Offerings Performance-Driven Leadership Team Continuous Improvement and Innovation World-Class Service Winning Growth Strategy
Slide 16: Performance Driven Leadership Team
Performance Driven Leadership Team Tenure World-Class Talent Global 6 years Avg Tenure in Role 12 years Avg Tenure at Gartner
Slide 17: Winning Growth Strategy
Extraordinary Research Insight Strong Sales Capability High-Value Differentiated Offerings Performance-Driven Leadership Team Continuous Improvement and Innovation World-Class Service Winning Growth Strategy
Slide 18: Contract Value
Contract Value 1116 2004 2005 2006 2007 2008 2009 2010 2011 $m
Slide 19: Normalized EBITDA
Normalized EBITDA Restated to exclude results of Vision Events. See attached Glossary for a discussion of normalized EBITDA. $m 315- 2004 2005 2006 2007 2008 2009 2010 2011 2012E
Slide 20: Normalized EBITDA Margin
Normalized EBITDA Margin Restated to exclude results of Vision Events. See attached Glossary for a discussion of normalized EBITDA. 19.7 – 20.3% 11.8% 10.4% 14.5% 16.3% 16.7% 16.8% 17.9% 19.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012E EBITDA %
Slide 21: EPS from Continuing Operations
EPS from Continuing Operations $0.09 -$0.05 $0.47 $0.65 $0.98 $0.85 $0.96 $1.39 $ 1.63- $1.79 2004 2005 2006 2007 2008 2009 2010 2011 2012E
Slide 22: Contract Value, EBITDA Margin and EPS
Contract Value me Normalized EBITDA Margin Bie 10% 2 70 gm 7 103% 167% 188% 75% 145% a= 2 118% | | | ~ lil ‘zon 2005 2008 "2007 2008 2009 2010 2011 2004 2005 2006 2007 20082009 2010 20112012 $163. EPS from Continuing Operations $170 216 as 29 $1.39 20 2 491 $0.98 100 9 sos $098 $0.65 0 i i i 009 | L
Slide 23: 5,100 CIOs at the World's Most Important Gathering of CIOs
5,100 CIOs The World’s Most Important Gathering of CIOs and Senior IT Executives
Slide 24: 2012 Sales Kickoff
2012 Sales Kickoff
Slide 25: Why Invest in Gartner?
Why Invest in Gartner? Long-term, Double-Digit Revenue, EPS & CF Growth Winning Strategy Exceptional Business Model Vast Market Opportunity Strong Value Proposition
Slide 26: Gartner
Gartner
Slide 27: Peter Sondergaard, SVP Research
Peter Sondergaard Senior Vice President Research
Slide 28: Gartner Research
Gartner Research Winning Strategy Strong Value Proposition Vast Market Opportunity
Slide 29: The Next Age of Computing: Nexus of Forces
INFORMATION MOBILE SOCIAL CLOUD NEXUS OF FORCES The Next Age of Computing
Slide 30: Public Cloud Growth
Public Cloud Growth Source: Gartner Estimates (2Q11 Update)
Slide 31: The Next Age of Computing: Nexus of Forces
INFORMATION MOBILE SOCIAL CLOUD NEXUS OF FORCES The Next Age of Computing
Slide 32: What's Installed
What’s Installed Source: Gartner Estimates (2Q11 Update)
Slide 33: The Big Shift
Mobile OS PC OS The Big Shift Source: Gartner Estimates (2Q11 Update)
Slide 34: The Next Age of Computing: Nexus of Forces
INFORMATION MOBILE SOCIAL CLOUD NEXUS OF FORCES The Next Age of Computing
Slide 35: 2012 Client Key Initiatives
Rank Key Initiative Rank Key Initiative 2012 Client Key Initiatives Source: Gartner.com Data, January 2012 1 Cloud Computing 2 Mobile Enterprise Strategy 3 Enterprise Architecture 4 IT Strategic Planning 5 IT Governance 6 ITIL and Process Improvement 7 Data Center Modernization 8 IT Cost Optimizatio
Slide 36: 2006 Client Key Initiatives
Rank Key Initiative Rank Key Initiative 2006 Client Key Initiatives Source: Gartner.com Data, January 2007 4 Application Development 5 ERP & Supply Chain Management 6 Mobile & Wireless 7 Customer Relationship Management 8 Application Integration and Middleware 9 Outsourcing 10 Emerging Technologies
Slide 37: Gartner Research
20% 70% Extraordinary Research Insight 10% Gartner Research Note: Percentages based on midpoint of 2012 revenue guidance. Gartner Research Business Gartner Consulting Business Gartner Events Business
Slide 38: Gartner Research Model: The Research Process
People Process Proprietary Data Packaging Gartner Research Model The Research Process
Slide 39: The People: Analysts
People Process Proprietary Data Packaging Gartner Research Model The People — Analysts Subject Matter Experts Over 810 analysts in 26 countries Over 135 based in APAC, over 190 based in Europe Minimum 12 years of experience at time of hire 60% have 20+ years of industry experience
Slide 40: The Research Process
Decision Makers in 12,400 organizations Technology & Service Providers 12,000 briefings Investors People Process Proprietary Data Packaging Gartner Research Model The Research Process Academic Institutions
Slide 41: The Research Process
People Process Proprietary Data Packaging Transparency Objectivity Collaboration Quality Gartner Research Model The Research Process
Slide 42: The Research Process
Rank Key Initiative People Process Proprietary Data Packaging 2 Mobile Enterprise Strategy 3 Enterprise Architecture 4 IT Strategic Planning 5 IT Governance 1 Cloud Computing Gartner Research Model The Research Process
Slide 43: Proprietary Data and Analytics
Proprietary Data and Analytics People Process Proprietary Data Packaging Gartner Research Model Proprietary Data and Analytics Over 2,300 contract reviews and almost 8,500 strategy reviews A terabyte of continually updated market data 5,500 IT Cost and Price benchmarks 290,000 recorded interactions
Slide 44: Packaging and Presentation
8,600 documents annually including: Magic Quadrants Hype Cycles Vendor Ratings Written Actionable Advice People Process Proprietary Data Packaging Gartner Research Model Packaging and Presentation
Slide 45: Packaging and Presentation
Scalable structure and process to handle 290,000 interactions Phone access to analysts Face-to-face interactions Interactions People Process Proprietary Data Packaging Gartner Research Model Packaging and Presentation
Slide 46: Gartner Research Business
70% People Process Proprietary Data Packaging Gartner Research Highly differentiated insight delivered primarily through digital media subscriptions Gartner Research Business Gartner Research Business Note: Percentages based on midpoint of 2012 revenue guidance.
Slide 47: Gartner for IT Executives
Gartner for IT Executives Equips CIOs with the role-specific tools and knowledge they need to deliver exceptional business results for their organizations 12 18 5 4 8 Gartner Research Vast Untapped Market Opportunity $1.1 Billion** Source: Gartner internal estimates * technology, professional servic
Slide 48: Gartner for IT Leaders
12 18 5 4 8 Gartner for IT Leaders Provides IT leaders with just-in-time, role- specific insight and advice from Gartner analysts to drive success on critical initiatives and IT purchases Gartner Research Vast Untapped Market Opportunity $1.1 Billion** Source: Gartner internal estimates * technology
Slide 49: Gartner for Technical Professionals
12 18 5 4 8 Gartner for Technical Professionals Provides IT technical professionals with in-depth advice to drive technology architecture decisions and implementation strategy Gartner Research Vast Untapped Market Opportunity $1.1 Billion** Source: Gartner internal estimates * technology, profession
Slide 50: Gartner for Supply Leaders
Gartner for Supply Leaders Provides Supply Chain leaders within different industries advice and tools to optimize and drive success on critical initiatives around their specific value chain 12 18 5 4 8 Gartner Research Vast Untapped Market Opportunity $1.1 Billion** Source: Gartner internal estimate
Slide 51: Gartner for Business Leaders
12 18 5 4 8 Gartner for Business Leaders Provides business leaders in Technology and Service providers with the tools and insight to ensure they succeed in the marketplace Gartner Research Vast Untapped Market Opportunity $1.1 Billion** Source: Gartner internal estimates * technology, professional s
Slide 52: Continuous Product Innovation
Continuous Product Innovation Content Technology Platform Usability/interface
Slide 53: Strong Value Proposition
Strong Value Proposition Right direction, right away Immediate shortlists on key initiatives Contract reviews Best-practice budget benchmark Cost avoidance Global perspective Best practice by vertical industry Strategic guidance Making the right decision Personal development Increased credibility Sa
Slide 54: Gartner Research
Gartner Research Winning Strategy Vast Market Opportunity Strong Value Proposition
Slide 55: Gartner
Gartner
Slide 56: Alwyn Dawkins, SVP Gartner Events
Alwyn Dawkins Senior Vice President Gartner Events
Slide 57: Gartner Events
Gartner Events Winning Strategy Vast Market Opportunity Strong Value Proposition
Slide 58: Gartner Events Business
Extraordinary Research Insight 10% Gartner Events Gartner Events Business Differentiated live events leveraging research content Gartner Events Business Note: Percentages based on midpoint of 2012 revenue guidance.
Slide 59: Our Mission: Make Every Conference the Must Attend Event
Make every conference we produce the MUST ATTEND event for the communities we serve Our mission:
Slide 60: World's Leading IT Conference Producer
World’s Leading IT Conference Producer Extraordinary Research Insight 10% Gartner Events Business Gartner Events 60 Events 6 Continents 42,800 Attendees 1,500 Exhibitors
Slide 61: Gartner Events: Current, Relevant, Actionable
10% People Process Proprietary Data Gartner Events Gartner Events Business Current Relevant Actionable Note: Percentages based on midpoint of 2012 revenue guidance.
Slide 62: Attendee Value Proposition
Face-to-face Analyst interaction Industry leaders Unparalleled peer networking Access to leading solution providers Actionable advice Attendee Value Proposition
Slide 63: Exhibitor Value Proposition
Face to face interaction with high level attendees Cost effective means to generate leads Exhibitor Value Proposition
Slide 64: 2011 Gartner Event Portfolio
2011 Gartner Event Portfolio 60 strategic conferences 15% increase in global attendance
Slide 65: Symposium: 5,100 CIOs and Over 18,000 Attendees
5,100 CIOs (up 18% YoY) and over 18,000 Attendees (up 16% YoY) The World’s Most Important Gathering of CIOs and Senior IT Executives
Slide 66: Global Symposium CIO Attendance
1,900 2,500 3,500 4,300 5,100 Symposium strategy driving increased CIO attendance 5,100 plus CIOs 18% YOY increase 2007 2010 2008 2009 2011 +32% +40% +23% +18% Global Symposium CIO Attendance
Slide 67: 2012 Gartner Event Portfolio
2012 Gartner Event Portfolio 63 strategic conferences
Slide 68: Gartner Events
Gartner Events Winning Strategy Vast Market Opportunity Strong Value Proposition
Slide 69: Gartner
Gartner
Slide 70: Per Anders Waern, SVP Gartner Consulting
Per Anders Waern Senior Vice President Gartner Consulting
Slide 71: Gartner Consulting Business
20% Extraordinary Research Insight Gartner Consulting Longer-term differentiated engagements leveraging Gartner research Gartner Consulting Business Note: Percentages based on midpoint of 2012 revenue guidance.
Slide 72: Gartner Consulting
Gartner Consulting Winning Strategy Vast Market Opportunity Strong Value Proposition
Slide 73: Gartner Consulting Services
20% Extraordinary Research Insight Gartner Consulting Note: Percentages based on midpoint of 2012 revenue guidance. Core Consulting Benchmarking Services Contract Optimization
Slide 74: Gartner Consulting Differentiators
20% Extraordinary Research Insight Gartner Consulting Note: Percentages based on midpoint of 2012 revenue guidance. Independent and Objective Powered by Gartner Research Proprietary Benchmark Enabled
Slide 75: Experienced Senior Practitioners
Experienced Senior Practitioners 481 billable Consultants $424K average annual revenue per head Powerful value proposition for attracting top talent
Slide 76: Managing Partner
Managing Partner Trust-based relationships Repeatable services
Slide 77: Gartner Consulting Engagements
20% Extraordinary Research Insight Gartner Consulting Note: Percentages based on midpoint of 2012 revenue guidance. Longer-term differentiated engagements leveraging Gartner research 50% cost savings Mobility roadmap Cloud strategy
Slide 78: Contract Optimization
Contract Optimization
Slide 79: Contract Optimization: Over $1.4B in Client Savings
>$1.4B in documented client savings Gartner Consulting Contract Optimization
Slide 80: Gartner Consulting
20% Extraordinary Research Insight Gartner Consulting Note: Percentages based on midpoint of 2012 revenue guidance. Longer-term differentiated engagements leveraging Gartner research
Slide 81: Consulting Continuous Productivity Improvements
Gartner Consulting – Continuous Productivity Improvements Gross Contribution Margin 37% 34% 2011 2004 Note: 2004 Gross Contribution Margin re-stated to reflect the impact of equity compensation expense – impact is 1 pt.
Slide 82: Gartner Consulting
Gartner Consulting Winning Strategy Strong Value Proposition Vast Market Opportunity
Slide 83: Gartner
Gartner
Slide 84: David Godfrey, SVP Worldwide Sales
David Godfrey Senior Vice President Worldwide Sales
Slide 85: Three Business Segments
20% 70% 10% Extraordinary Research Insight Gartner Note: Percentages based on midpoint of 2012 revenue guidance. Gartner Research Business Gartner Consulting Business Gartner Events Business
Slide 86: Gartner Sales
Gartner Sales
Slide 87: Gartner Sales
Gartner Sales 1,268 quota-bearing sales associates 186% growth since 2004 48% outside of United States Profile of a Gartner Account Executive Highly motivated Great sales DNA Passionate Goal oriented
Slide 88: Market Opportunity: Enterprise Opportunity
Market Opportunity 2008 80,000 2012 108,000 Enterprise Opportunity
Slide 89: Market Opportunity: Covered Enterprises
Market Opportunity 2008 19,000 2012 34,000 Covered Enterprises
Slide 90: Market Opportunity: Client Enterprises
Market Opportunity 2008 6,800 2012 8,100 Client Enterprises
Slide 91: Total Market Opportunity
18 5 8 7 11 3 12 4 $47 Billion 2012 Other* Front-line IT Professionals Supply Chain CIOs IT Functional Leaders Total Market Opportunity * technology, professional services, telecommunications and investors Source: Gartner internal estimates Other* CIOs IT Functional Leaders 2008 $21 Billion
Slide 92: Vast Market Opportunity For Research
74,000 108,000 34,000 12 18 5 4 8 Total Uncovered Covered # of Enterprises $47 Billion 2012 Other* Front-line IT Professionals Supply Chain CIOs IT Functional Leaders Prospects Clients 25,900 8,100 Percent of Total 100% 69% 31% 24% 7% $1.1 Billion** Vast Market Opportunity For Research * technology,
Slide 93: Research Sold as Subscriptions to Individuals
Research sold as subscriptions to individuals IT Functional Leaders IT Professionals CIO Role-based Recurring revenue
Slide 94: Case Study: Growing the Account
Case Study: Growing the Account
Slide 95: Case Study: Growing the Account
Case Study: Growing the Account
Slide 96: Gartner Sales
Gartner Sales Winning Strategy Vast Market Opportunity Strong Value Proposition
Slide 97: Sales Strategy to Capture Market Opportunity
Coverage Capacity Sales Effectiveness Sales Strategy to Capture Market Opportunity
Slide 98: Sales Strategy to Capture Market Opportunity
Coverage Capacity Sales Effectivenes s Sales Strategy to Capture Market Opportunity
Slide 99: Sales Strategy to Capture Market Opportunity
Capacity Sales Effectivenes s Coverage Sales Strategy to Capture Market Opportunity
Slide 100: Sales Strategy to Capture Market Opportunity
Capacity Coverage Sales Effectiveness Sales Strategy to Capture Market Opportunity
Slide 101: Capacity
Capacity Sales Strategy to Capture Market Opportunity 15 - 20% increased annual sales headcount objective Architected recruitment and training plan
Slide 102: Capacity: Direct Quota Bearing Headcount
Capacity Sales Strategy to Capture Market Opportunity 15 - 20% increased annual sales headcount objective Architected recruitment and training plan Direct Quota Bearing Headcount
Slide 103: Gartner
Gartner
Slide 104: Gartner Sales: A Great Place to Work
Gartner Sales: A great place to work Gartner culture Collaboration Leading tools and Best Practices Access to the C-Level Innovative products
Slide 105: Coverage
Coverage Sales Strategy to Capture Market Opportunity Focused channel approach Matched to global opportunity Emphasizing client intimacy Research Client Organizations Average Contract Value per Organization $K
Slide 106: Sales Effectiveness
Sales Effectiveness Sales Strategy to Capture Market Opportunity Great Talent World Class Training Proprietary Tools and Best Practices
Slide 107: Gartner Sales
Gartner Sales Winning Strategy Strong Value Proposition Vast Market Opportunity
Slide 108: Gartner
Gartner
Slide 109: Chris Lafond, Chief Financial Officer
Chris Lafond Gartner Chief Financial Officer
Slide 110: Consistent, Winning Growth Strategy
Extraordinary Research Insight Strong Sales Capability High-Value Differentiated Offerings Performance-Driven Leadership Team Continuous Improvement and Innovation World-Class Service Consistent, Winning Growth Strategy
Slide 111: The Financial Plan We Set in 2005
Grow the Research business Optimize the Events portfolio Improve the profitability of the Consulting business Leverage our G&A infrastructure Drive shareholder value Consistent, Winning Growth Strategy: The Financial Plan We Set in 2005
Slide 112: Grow the Research Business
Grow the Research Business Contract Value >100% 1,116 $M 2004 2011
Slide 113: Consistent Growth Strategy: Grow the Research Business
Consistent Growth Strategy: Grow the Research Business (a) Based on midpoint of 2012 revenue guidance. Events 13% 2004 Consulting 30% Research 57% Events 10% 2012 Estimate (a) Consulting 20% Research 70%
Slide 114: Optimize the Events Portfolio
Optimize the Events Portfolio # Events +7% 2004 2011 Attendees 30,999 42,808 +38% 2004 2011 1,321 +16% 1,532 2004 2011 Exhibitors
Slide 115: Improve Consulting Profitability
Revenue ($M) 2004 $259 2011 $308 Headcount 2004 2011 Gross Contribution Margin (%) 2004 34% 2011 37% Improve Consulting Profitability
Slide 116: Leverage our G&A Infrastructure
Leverage our G & A Infrastructure 2004 18% of revenue 2011 15% of revenue
Slide 117: Drive Shareholder Value
Drive Shareholder Value 44 Million shares repurchased $963.5M returned to shareholders Shares Outstanding ($000’s) 2004 126,326 2011 98,846 -21%
Slide 118: Cash Flow and Earnings Track Record
Consistent, Winning Growth Strategy: CF & Earnings Track Record Normalized EBITDA (a) $ in millions EBITDA% 2004 2011 11.8 19.0 2004 2011 Normalized EBITDA Margin (a) EPS from Continuing Operations Free Cash Flow (a) 2004 $0.09 $1.39 2011 2004 2011 $ in millions (a) See the attached Glossary for the
Slide 119: Why Invest in Gartner?
Why Invest in Gartner? Long-term, Double-Digit Revenue, EPS & CF Growth Winning Strategy Exceptional Business Model Vast Market Opportunity Strong Value Proposition
Slide 120: Value Proposition: Three Business Segments
20% 70% 10% Extraordinary Research Insight Value Proposition: We Deliver Our Extraordinary Research Insight Through Three Business Segments Note: Percentages based on midpoint of 2012 revenue guidance. Gartner Research Business Gartner Consulting Business Gartner Events Business
Slide 121: Vast Market Opportunity For Research
74,000 108,000 34,000 8 4 5 18 12 Vast Market Opportunity For Research Prospects Clients 25,900 8,100 Percent of Total 100% 69% 31% 24% 7% Total Uncovered Covered # of Enterprises $1.1 Billion** * technology, professional services, telecommunications and investors ** 2011 ending contract value Sourc
Slide 122: Attractive and Predictable Business Model
Subscription-based business model High renewal/retention rates–80% plus–attractive level of recurring revenue Negative working capital High incremental margins Strong balance sheet High level of conversion from earnings into FCF Attractive and Predictable Business Model
Slide 123: Attractive Business Model: Margin Expansion
Attractive Business Model: Margin Expansion High incremental gross contribution margin long-term targets Research — 70% Events — 50% Consulting — 40% Normalized EBITDA Margin +720 BPS 2004 2011
Slide 124: Attractive Business Model: Strong Cash Flow
Attractive Business Model: Strong Cash Flow Leverage Conversion (a) See the attached Glossary for the definition of Free Cash Flow, and cautionary statement regarding this non-GAAP financial measure. Net Income $ in millions +706% +830% Free Cash Flow (a) $ in millions
Slide 125: Long-Term Financial Objectives
Long-Term Financial Objectives Normalized EBITDA margin improvement 50 – 150 bps per year Total Revenue Growth 11 – 16% Annual Research 15 – 20% Consulting 3 – 8% Events 5 – 10%
Slide 126: Consistent Growth Strategy: Total Revenue
Consistent Growth Strategy (a) Restated to exclude results of Vision Events. (b) See the attached Glossary for the definition of Normalized EBITDA, and cautionary statement regarding this non-GAAP financial measure (c) 2012 Normalized EBITDA margin based upon mid-point of 2012 guidance (d) See Forwa
Slide 127: Consistent Growth Strategy: Normalized EBITDA
Consistent Growth Strategy (a) Restated to exclude results of Vision Events. (b) See the attached Glossary for the definition of Normalized EBITDA, and cautionary statement regarding this non-GAAP financial measure (c) 2012 Normalized EBITDA margin based upon mid-point of 2012 guidance (d) See Forwa
Slide 128: Consistent Growth Strategy: EPS
Consistent Growth Strategy (a) Restated to exclude results of Vision Events. (b) See the attached Glossary for the definition of Normalized EBITDA, and cautionary statement regarding this non-GAAP financial measure (c) 2012 Normalized EBITDA margin based upon mid-point of 2012 guidance (d) See Forwa
Slide 129: Consistent Growth Strategy: Free Cash Flow
Consistent Growth Strategy (a) Restated to exclude results of Vision Events. (b) See the attached Glossary for the definition of Normalized EBITDA, and cautionary statement regarding this non-GAAP financial measure (c) 2012 Normalized EBITDA margin based upon mid-point of 2012 guidance (d) See Forwa
Slide 130: Why Invest in Gartner?
8 Why Invest in Gartner? Long-term, Double-Digit Revenue, EPS & CF Growth Winning Strategy Exceptional Business Model Vast Market Opportunity Strong Value Proposition
Slide 131: Gartner
Gartner
Slide 132: Appendix
Appendix
Slide 133: Projected 2012 Full Year Revenue and EBITDA Outlook
Projected 2012 Full Year Revenue and EBITDA Outlook ($ in millions except per share data) Research $ 1,130 - 1,150 12% - 14% Consulting - 1% - 7% Events - 8% - 14% Total Revenue $1,600 - 1,650 9% - 12% 2012 Projection (1) Reported % change (1) Normalized EBITDA (2) $315 - 13% - 20% (1) See Forward L
Slide 134: Projected 2012 Earnings and Cash Flow Outlook
Projected 2012 Earnings and Cash Flow Outlook ($ in millions except per share data) 2012 Projection (3) Reported % change (1) Diluted Income per share $1.63 - 1.79 17% - 29% Operating Cash Flow (1) $285 - 305 12% - 19% Capital Expenditures (1) (46) - (48) Free Cash Flow (2) - 257 12% - 20% (1) Capit
Slide 135: Projected 2012 Quarterly Phasing – Revenue
Projected 2012 Quarterly Phasing – Revenue Research revenue driven by retention rates and timing of new business Balanced renewals with 26% expected in Q1 Fourth quarter historically the largest for new business Events revenue recognized when conferences delivered Symposium Series in Q4 drives phasi
Slide 136: Projected 2012 Quarterly Phasing – Revenue
Projected 2012 Quarterly Phasing – Revenue Research Consulting Events Q1 Q2 Q3 Q4 24% 26% 25% 25% 22% 26% 24% 28% 11% 25% 11% 53% Above based on midpoint of revenue guidance Note: See Forward Looking Statement disclaimer on page 1 for factors that may affect our ability to achieve these results. App
Slide 137: Projected 2012 Quarterly Phasing – Expense
Projected 2012 Quarterly Phasing – Expense Quarterly fluctuations in cost of services driven primarily by the conference schedule in our Events business Higher Research and Sales expenses in Q4 related to Symposia and year-end sales support activities G&A is less seasonal Note: See Forward Looking S
Slide 138: Projected 2012 Sales, G&A and Other Expenses
Projected 2012 Sales, G&A and Other Expenses Depreciation and amortization of $29 - 30 million Interest expense of $10 – 11 million Other income/expense of $2 – 3 million (primarily transaction FX gains/losses) Tax rate projected to be between 32 and 33% Note: See Forward Looking Statement disclaime
Slide 139: Projected 2012 Quarterly Phasing – Earnings
Projected 2012 Quarterly Phasing – Earnings Approximate income per share: Q1 Q2 Q3 Q4 19% 36% 25% 20% Above based on the midpoint of guidance Based upon business conditions the Company may accelerate or postpone expenses throughout the year which could shift earnings between quarters Note: See Forwa
Slide 140: Why Invest in Gartner?
8 Why Invest in Gartner? Long-term, Double-Digit Revenue, EPS & CF Growth Winning Strategy Exceptional Business Model Vast Market Opportunity Strong Value Proposition
Slide 141: Glossary: Non-GAAP Financial Measures
Glossary Non-GAAP Financial Measures Investors are cautioned that Normalized EBITDA and Free Cash Flow are not financial measures under generally accepted accounting principles. In addition, they should not be construed as alternatives to any other measures of performance determined in accordance wi
Slide 142: Glossary: Free Cash Flow Reconciliation
Glossary Non-GAAP Financial Measures Free Cash Flow: Represents cash provided by operating activities excluding cash charges related to the acquisitions of AMR Research and Burton Group, which primarily consist of certain nonrecurring costs such as severance and other exit costs (“Cash Acquisition a