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Investor Presentation First Quarter 2015

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Page 1: Q1 2015 Investor PresentationQ1 2015 Investor Presentation

Investor Presentation First Quarter 2015

Page 2: Q1 2015 Investor PresentationQ1 2015 Investor Presentation

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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.

Page 3: Q1 2015 Investor PresentationQ1 2015 Investor Presentation

INTEGRATED DISCOVERY PLATFORM

INTEGRATED DATA WAREHOUSE

DATA

PLATFORM

UNIFIED DATA ARCHITECTURE

Marketing

Executives

Operational

Systems

Frontline

Workers

Customers

Partners

Engineers

Data

Scientists

Business

Analysts Math

and Stats

Data

Mining

Business

Intelligence

Applications

Languages

Marketing

USERS

ANALYTIC TOOLS &

APPS

Search TERADATA ASTER DATABASE

TERADATA DATABASE

INTEGRATED

BIG DATA PLATFORM

TERADATA

PORTFOLIO FOR

HADOOP

REAL TIME PROCESSING ERP

SCM

CRM

Images

Audio

and Video

Machine

Logs

Text

Web and

Social

SOURCES

Marketing

Executives

Operational

Systems

Knowledge

Workers

Customers

Partners

Engineers

Data

Scientists

Business

Analysts

USERS

Page 4: Q1 2015 Investor PresentationQ1 2015 Investor Presentation

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Teradata Analytical Ecosystem

1000 series

2000 series

500 series

6000 series

2000 series

6000 series

Page 5: Q1 2015 Investor PresentationQ1 2015 Investor Presentation

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Teradata Workload-Specific Platforms

Data Mart

Appliance

Extreme Data

Appliance

Data

Warehouse

Appliance

Active

Enterprise

Data

Warehouse

Appliance

for Hadoop

Aster Big

Analytics

Appliance

600 Series 1000 Series 2000 Series 6000 Series

Scale Up to 8TB Up to 186PB Up to 1.6PB Up to 61PB Up to 10PB Up to 5PB

Workloads

Test / Development

or Smaller Data Marts

Analytical Archive,

Deep Dive Analytics

Strategic Intelligence,

Decision Support System,

Fast Scan

Strategic & Operational Intelligence,

Real Time Update, Active

workloads

Appliance for Storing, Capturing and Refining Data. Hortonworks HDP

1.1

Discovery Platform for Big Data

Analytics with embedded SQL MapReduce for

new data types & sources

Page 6: Q1 2015 Investor PresentationQ1 2015 Investor Presentation

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Broadest, Most Flexible Hadoop Offerings in Market

Aster Big Analytics Appliance

Appliance for Hadoop Commodity Offering

with Dell Software Only

Overview Premier Premier Commodity Commodity

Value Proposition

Big data analytics in an integrated package

Enterprise-ready Hadoop with single vendor support

Pre-designed, cost-effective commodity hardware with Teradata software support

Flexible hardware options with Teradata software support

Value Add

Single best analytics & discovery platform

SQL-MapReduce & 70+ analytics

Integrated hardware/software

Software to simplify operation of Hadoop

Integrated hardware/software that is engineered, staged, & delivered complete.

Data staging & refining Software to simplify

operation of Hadoop

Hardware staged, delivered by Dell

Teradata software install & support

Teradata software install & support

Segment Business Value Based IT

“Buy it”

Value Based IT

“Buy it”

Cost-Based IT

“Buy it, Build it”

Engineering IT

“Build it”

100% Open Source, Community-Driven Enterprise Apache Hadoop

Page 7: Q1 2015 Investor PresentationQ1 2015 Investor Presentation

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Continuous update and time-sensitive queries become important

OPERATIONALIZING WHAT IS happening now?

Event-based triggering takes hold

ACTIVATING MAKE it happen!

Primarily batch and some ad hoc reports

Increase in ad hoc analysis

ANALYZING WHY did it happen?

REPORTING WHAT happened?

Analytical modeling grows

PREDICTING WHAT WILL happen?

Wo

rklo

ad

So

ph

istic

atio

n

Scalability

Stage 1

Stage 2

Stage 3

Stage 4

Stage 5

Teradata’s Data Warehouse Evolution/Vision

Page 8: Q1 2015 Investor PresentationQ1 2015 Investor Presentation

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Teradata’s Industry-Leading Technology

Technology Demands

• Extreme scalability

• Extreme performance

• Extreme availability

• Extreme data load and

access

Scalability Across Multiple Dimensions

Data Volume (Raw, User Data)

Schema Sophistication

Query Freedom

Query Complexity

Query Concurrency

Mixed Workload

Query Data Volume

Data Freshness

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

Page 9: Q1 2015 Investor PresentationQ1 2015 Investor Presentation

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Teradata – The Data Warehouse Leader

The Magic Quadrant is copyrighted March 2014 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 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.

Gartner Magic Quadrant for Data Warehouse Database

Management Systems

Magic Quadrant for Data Warehouse Database Management Systems

Mark Beyer, Roxanne Edjlali 3/7/14

Page 10: Q1 2015 Investor PresentationQ1 2015 Investor Presentation

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The Forrester Wave TM Enterprise Data Warehouse Q4 2013

The Forrester Wave ™ is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave ™ are trademarks of 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 any vendor, product, or service

depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change.

Page 11: Q1 2015 Investor PresentationQ1 2015 Investor Presentation

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Teradata Integrated Marketing Cloud – Solutions

TERADATA INTEGRATED MARKETING CLOUD

MARKETING PLANS

SPEND MANAGEMENT

WORKFLOW & COLLABORATION

ASSET MANAGEMENT

OFFER MANAGEMENT

MARKETING RESOURCE MANAGEMENT

INBOUND & OUTBOUND COMMUNICATIONS

REAL-TIME DECISIONING

DIGITAL DELIVERY

OPTIMIZATION

ACTIONABLE ANALYTICS

OMNI-CHANNEL MARKETING

EMAIL MARKETING

MOBILE MARKETING

SOCIAL MARKETING

WEB MARKETING

DIGITAL ANALYTICS

DIGITAL MARKETING

MARKETING

ANALYTICS BUSINESS INTELLIGENCE BIG DATA ANALYTICS PREDICTIVE ANALYTICS

Teradata Integrated Marketing Cloud - Solutions

Page 12: Q1 2015 Investor PresentationQ1 2015 Investor Presentation

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Teradata Positioned as Leader

This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon

request from Teradata. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with

the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties,

expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose

Gartner 2015 MRM Magic Quadrant

Magic Quadrant for MRM MQ,

Kim Collins, 2/2/15

Page 13: Q1 2015 Investor PresentationQ1 2015 Investor Presentation

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95%

68%

60%

56% 52%

48%

27%

11%

40%

28%

23%

32% 33%

24%

15%

7%

Telecom Trav/Trans Media/Ent. Retail Healthcare Fin/Ins Manuf Energy &

UtilitiesGlobal 500 Teradata Global 3000

Revenue by Industry

Approximate percentages of product and consulting services revenue by industry

Industry Vertical 2007 2008 2009 2010 2011 2012 2013 2014

Financial Services 24% 29% 28% 28% 28% 30% 31% 31%

Communications 28% 28% 23% 24% 24% 21% 19% 19%

Retail 19% 16% 17% 16% 16% 16% 14% 14%

Manufacturing 9% 11% 10% 13% 12% 12% 13% 13%

Healthcare 5% 4% 8% 6% 7% 7% 8% 6%

Travel & Transportation 6% 6% 6% 6% 5% 6% 6% 7%

Government 7% 5% 7% 7% 6% 6% 6% 7%

Other 2% 1% <1% <1% 2% 2% 3% 3%

Global 3000 Global Fortune 500

Industry Penetration+

+ Percentage of companies within each industry vertical that have begun investing in Teradata.

Page 14: Q1 2015 Investor PresentationQ1 2015 Investor Presentation

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Revenue Mix & Operating Segments

Revenue Mix 2014 % of

Total

Products (SW/HW) $1,227M

45%

Consulting Services 817M 30%

Maintenance Services 688M 25%

Total Revenue $2,732M

Approximately 40% + of Teradata’s revenue is

from recurring revenue sources.

Americas 59% of total revenue

Gross margin 58.2%

International 41% of total revenue

Gross margin 48.2%

Operating Segments

Page 15: Q1 2015 Investor PresentationQ1 2015 Investor Presentation

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Strong Balance Sheet & Cash Flow

Balance Sheet

($ in millions)

2007 2008 2009 2010 2011 2012 2013 2014

Cash and Cash Equivalents $270 $402 $661 $883 $772 $729 $695 $834

Working Capital $301 $475 $609 $837 $717 $728 $787 $577

Total Assets $1,294 $1,430 $1,569 $1,883 $2,616 $3,066 $3,096 $3,132

Debt 0 0 0 0 $290 $274 $274 $468

Total Deferred Revenue $246 $283 $280 $290 $363 $405 $415 $388

Total Shareholders’ Equity $631 $777 $910 $1,189 $1,494 $1,779 $1,857 $1,707

Cash Flow

($ in millions) 2007 2008 2009 2010 2011 2012 2013 2014

Net Income $200 $250 $254 $301 $353 $419 $377 $367

Cash from Operations $387 $440 $455 $413 $513 $575 $510 $680

Free Cash Flow $292 $369 $367 $330 $403 $427 $372 $551