Slide 1: Teradata Corporation
Teradata Corporation September 2007 Exhibit 99.1
Slide 2: Note to Investors
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/updates . • Remarks and responses associated
Slide 3: Information Technology Landscape
Enterprise Application Integration Data Acquisition & Integration Operational/ Transactional Systems Business Intelligence/ Analytical Applications Transactional Databases Information Technology Landscape Informatica, IBM, Oracle Oracle, SAP Oracle, SAP, SAS, Business Objects, Cognos, Microsoft, Ter
Slide 4: The Problem
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 Proliferation of Data M
Slide 5: The Teradata Solution: Enterprise Data Warehouse (EDW)
Enterprise Data Warehouse (EDW) The Teradata Solution Accts. Payable Accts. Receivable Invoicing Sales/Orders Finance G/L Customer Support HR Payroll Purchasing Order Fulfillment Manufacturing Inventory … Enterprise Data Warehouse (EDW) Integrated data provides consistency of data, Integrated data p
Slide 6: The Value of EDW
The Value of EDW Product Data Transaction Data Customer Data Business Value EDW Investment Sales + Market Basket + Customer + Profitability + Inventory Analysis Analysis Analysis Analysis Financial Data Supplier Data Data Mart Consolidation
Slide 7: Investment Highlights
Investment Highlights • Leader in enterprise data warehousing…market moving our way • Significant Enterprise Data Warehouse Market opportunity with compelling growth opportunities > $19B market, 6.3% CAGR • Strong and diversified customer base > 850+ customers worldwide; installed base drives 85%+ o
Slide 8: Teradata Market Position
Teradata Market Position Global 400 Penetration Global 3000 Penetration FIH – Financial, Insurance, Healthcare 51% 55% 33% 51% 25% Retail Comm FIH Tr/Trans Manuf 26% 31% 24% 24% 12% Retail Comm FIH Tr/Trans Manuf
Slide 9: Teradata Growth Opportunity
91% Oracle IBM Microsoft Others Teradata Growth Opportunity Data Warehouse Infrastructure Market for the Global 3000 ($19B, 6.3% CAGR from 2007-2010) Teradata ( EDW) 9% 9% Source: IDC, Gartner, Teradata Analysis
Slide 10: Market Moving To EDW
Market Moving To EDW 15% 65% Today Future “Active” EDW Need Is Growing Sources: Q2-2006 Teradata EDW/ADW Survey, Source: The 2006 Teradata Report on Enterprise Decision-Making EDW Adoption is Growing Agree 85% Disagree 3% Neither 12% “Do you have a centralized EDW today? Will you have one in the fut
Slide 11: Operational Intelligence
Operational Intelligence Next Generation EDW – Active Data Warehousing Active Data Warehousing • Extends strategic intelligence (EDW) to front-line workers, suppliers, customers, … for operational decisions • Drives more users, decisions, data, and mission-critical environments • Provides customers
Slide 12: Teradata – Industry-Leading Technology
Teradata – Industry-Leading Technology Technology Demands • Extreme scalability • Extreme performance • Extreme availability • Extreme data load and access Mission critical 7 x 24 Teradata ’ s Multi-dimensional Scalability Data Volume (Raw, User Data) Schema Sophistication Query Freedom Query Comple
Slide 13: Gartner Data Warehouse Magic Quadrants
Gartner Data Warehouse Magic Quadrants The Magic Quadrant is copyrighted 9/12/06 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against c
Slide 14: The Teradata Advantage
5,500+ associates Consulting Services Sales Support Services Research & Development Marketing Strategy & Planning Implementation Services Architecture Consulting Services Business Consulting Services Storage Server Analytic Applications Support Services Database Software (inc. Tools and Utilities) L
Slide 15: Experienced Management Team
Experienced Management Team Saundra Davis VP, Human Resources 22 years with NCR/Teradata Michael Koehler President & Chief Executive Officer 32 years with NCR/Teradata Bruce Langos Chief Operations Officer 31 years with NCR/Teradata Stephen Scheppmann EVP and Chief Financial Officer 19 years CFO exp
Slide 16: Growing Revenue and Operating Income
7% (1)% 12% 9% 6% 7-9% Revenue Growth Rate 8% 10% 15% 19% 20% 20-21% Operating Margin Growing Revenue and Operating Income Revenue $ in millions Operating Income 1,217 1,203 1,349 1,467 1,560 2007G 2007G
Slide 17: Revenue Reporting & Operating Segments
Revenue Reporting & Operating Segments Operating Segments Revenue Breakdown Products (SW/HW revenues) $ 820 Professional & Install Services Support Services Revenue Total Teradata Revenue $1,560
Slide 18: Pro forma Financial Performance
Pro forma Financial Performance 1) Revenue and Operating Income adjusted downward from previously reported results for business activity unrelated to Teradata going forward. 2) Assumes a 30% tax rate in all years. As part of NCR, Teradata’s earnings were taxed at lower tax rates. 181.1M diluted shar
Slide 19: Target Operating Model
EPS Assumption Tax Rate Operating Margin Revenue Growth Long-Term Objective FY 2007 Guidance Target Operating Model 14-18% CAGR $1.12-$1.17 (3) ~30% 39% (2) 22-23% 20-21% (1) 7-9% 7-9% Revenue Growth Objective: Grow 30% faster than the market Margin Expansion Objectives: • Short Term - Absorb $25-30
Slide 20: Strong Cash Flow
137 151 68 55 58 123 Strong Cash Flow Shown in $ Millions Free Cash Flow is defined as “Cash from Operations” less “Capital Expenditures” for Property, Plant and Equipment and additions to Capitalized Software Cash from Operations Less: Capital Expenditures Free Cash Flow Capital Expenditures expect
Slide 21: Solid Capital Structure
Solid Capital Structure Pro Forma Historical ($ in millions) As of June 30, 2007 Strong Balance Sheet Strong liquidity $200M cash (opening balance on Sept 30,2007) Negotiating $300M credit facility Total Shareholders Equity Total long-term debt Deferred Revenue Total Assets Working Capital
Slide 22: Going Forward: Drive Value
Target Revenue 7-9% growth EPS 14-18% CAGR Going Forward: Drive Value Teradata is investing to help Customers drive value from EDW… and drive Teradata ’ s future growth • Increase Market Coverage > Sales, Consulting, and Partners • Expand Solutions and Offers > Teradata and Partner Solutions • Exten
Slide 23: Teradata The Leader in Enterprise Data Warehousing
Teradata The Leader in Enterprise Data Warehousing NYSE: TDC NYSE: TDC