Sybase: Technology for the Unwired Enterprise Jeff Ross Senior Vice President and Chief Financial Officer March 2010
Forward Looking Statements Certain statements in this presentation concerning Sybase, Inc. and its prospects and future growth are forward looking and involve a number of uncertainties and risks. Factors that could cause actual events or results to differ materially from those suggested by these forward looking statements include, but are not limited to, the performance of the global economy and growth in software industry sales; market acceptance of the company s products and services; customer and industry analyst perception of the company and its technology vision and future prospects; the success of certain business combinations engaged in by the company or by competitors; political unrest or acts of war; possible disruptive effects of organizational or personnel changes; and other factors described in Sybase, Inc. s reports filed with the U.S. Securities and Exchange Commission, including its annual report on Form 10 K for the year ended December 31, 2009. Sybase, the Sybase logo, AvantGo, Adaptive Server Enterprise (ASE), Adaptive Server Anywhere, ianywhere, ianywhere Solutions, Mirror Activator, Avaki EII, PowerDesigner, Replication Server, Afaria, SQL Anywhere, OneBridge, RFID Anywhere, Information Anywhere, and Answers Anywhere are trademarks or service marks of Sybase, Inc. or its subsidiaries. indicates trademark registration in the U.S. All other company and product names mentioned may be trademarks of the respective companies with which they are associated. 2
The Unwired Enterprise INFORMATION MANAGEMENT INFORMATION MOBILITY Any Application Any Device DECISION READY INFORMATION Any Server Platform Any Person INTEGRATION COLLABORATION Any Data Source MANAGE ANALYZE Always Available MOBILIZE 3
3 Key Trends Devices Expand 7x More Mobile bl Internet Connections Than Broadband Worldwide Today 1 Data Expands Volume of Data Doubles Every 18 Months 2 1 Yankee Group, 2008 2 Yankee Group enterprise storage study 2008 3 J. Gold Associates, November 2008 4 Action Points Expand Growth in Corporate Apps Accessed from Smart Phones +43% CAGR from 2008 to 2011 3
The Unwired Enterprise: Manage INFORMATION MANAGEMENT Information Management Solutions Any Application Enterprise ASE: Data management platform optimized for mission critical high performance transaction processing environments Mobile & Embedded SQL Anywhere: Enterprise class data management for mission critical frontline applications and remote/ embedded computing Any Server Platform Any Data Source Movement MobiLink: Two way wireless synchronization Replication Server: Realtime heterogeneous replication Tooling PowerDesigner: Modeling, design and data management tools for business processes and applications 5 MANAGE ANALYZE MOBILIZE
The Unwired Enterprise: Analyze Analytics l isolutions l i Analytics Products Solutions Analytics Server Column based, special purpose analytics server that redefines usability, scalability and performance. Risk ikanalytics Unified market analytics platform to support better portfolio decisions across the trade lifecycle. DECISION READY INFORMATION Analytics Server Sybase IQ Risk Analytics RAP The Trading Edition Real time Market Analytics Highly optimized streaming data analytics to support realtime business activity. INTEGRATION COLLABORATION Real time Market Analytics CEP 6 MANAGE ANALYZE MOBILIZE
The Unwired Enterprise: Mobilize Enterprise Mobility Mobility Solutions Sybase Unwired Platform, Afaria, Mobile Office, Enterprise Messaging: Comprehensive sets of solutions to assist in securely mobilizing and managing data and business processes. mcommerce mbanking, mpayments, Remittance: End to end solution for mcommerce in both developed and emerging markets. Operator Services SMS, MMS, and GRX Interoperability, IPX, Mobile Marketing: Mobile messaging interoperability, mobile content delivery and IP based services for operators INFORMATION MOBILITY Any Device Always Available Any Person 7 MANAGE ANALYZE MOBILIZE
Current Market Traction Taking Share from Database Competitors 22% CY200 09 Revenue Growth 25% 20% 15% 10% 5% 0% 5% 10% 8% 1% 0% 9% Sybase Oracle Microsoft IBM Teradata Source: Public SEC filings. Sybase: ASE and IQ license revenue. Oracle: Database and Middleware license revenue. Microsoft: Server and Tools revenue. IBM: Information Management software revenue. Teradata: product revenue. 8
Current Market Traction Recognized Leadership inmobilityand Analytics Sybase positioned in Gartner Magic Quadrants (1) The Leaders Quadrant in Mobile Enterprise Application Platforms (2) The Leaders Quadrant in Enterprise Wireless E mail Software (3) Sybase recognized by IDC The number one Mobile Device Management (4) software vendor for the eighth consecutive year A top Mobile Middleware (5) market leader for the seventh consecutive year A revenue growth leader in the Analytics and Data Warehouse (6) market Note: See endnotes at the end of presentation. 9
Future: Powering the Mobile Economy Analyze Customer Needs Drive Customer Awareness Complete Customer Fulfillment Managed Services Enable Customer Purchase 10
Three Consecutive Record Years and Consistent Execution Full Year Full Year Full Year 2007 2008 2009 Total Revenue $1.03 billion $1.13 billion $1.17 billion GAAP Operating Income Operating Margin EPS $169 million 16% $1.49 $210 million 19% $1.46 $290 million 25% $1.86 Non GAAP (1) Operating Income Operating Margin $221 million $266 million 22% 24% EPS $1.70 $2.16 $2.48 Cash Flow from Operations $349 million 30% $254 million $296 million $384 million (1) For a reconciliation of non GAAP operating income, operating margin and earnings per share for the years ended December 31, 2007, 2008 and 2009, see Sybase's Current Reports on Form 8 K filed with the SEC on January 29, 2009 and February 2, 2010. 11
Multiple Levers for Driving Shareholder Value Organic Revenue Growth Focus on technologyleadershipandleadership and platform synergies in data management, analytics, and mobility Operating Margin Expansion 1200bp plus plus of operatingmarginexpansionfrom expansion 2004 to2009 Profitability Consistently strong cash flow generation and 11 consecutive years of profitability (1) Share Repurchase $83.3M in remaining repurchase authorization as of December 31, 2009 Total repurchases of nearly $1.3 billion from 1998 through 2009 Investments Continued investment in R&D and strategic acquisitions 12 (1) 11 years of profitability as calculated on a Non GAAP basis. Multiple Levers for Driving Ongoing Shareholder Value and Double digit Returns
Shareholder Returns ConsistentlyExceed Its Peer Group and Market Indices Data as of January 29, 2010 SYBASE NASDAQ RUSSELL 2000 S&P 400 GOLDMAN SACHS SOFTWARE INDEX SYBASE PEER GROUP MEDIAN* 10 YEAR CAGR 5 YEAR CAGR 3 YEAR CAGR 10% (5.9) 2.0 5.0 NA (10.0) 0.8 (0.7) 1.7 2.0 3.4 (4.5) (9.1) (5.5) (0.8) (0.3) 10% 5.5 20% 30% 40% 50% 15.9 16.2 1 YEAR 35.7 RETURN 40.9 38.2 45.4 46.0 48.9 13 * Sybase Performance Peer Group consists of ACTU, BMC, CA, CPWR, INFA, INSP, MSFT, MSTR, NOVL, ORCL, PRGS, QSFT, SONE, SVR, TIBX
Keys to Continued Success 12% of revenue spent on technology innovation IP Financials Industry Recognition Consistent Profitability, Cash flow and Shareholder returns People Business Fundamentals Customers 9 Gartner Magic Quadrants 3 Forrester Waves Stable management team ISS corporate governance above: 93% of S&P400 and 98% of industry peers 9 Best Places to Work awards 97% customer satisfaction Strong new customer growth 14
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(1) The Gartner Magic Quadrants for Mobile Enterprise Application Platforms and Enterprise Wireless E Mail Software Market are copyrighted 18 December 2008 and 29 May 2008, respectively, by Gartner, Inc., and are reused with permission. The Magic Quadrant tis a graphical representation ti 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. (2) Gartner, Inc. "Magic Quadrant for Mobile Enterprise Application Platforms by William Clark and Michael J. King, 18 December 2008. (3) Gartner, Inc. "Magic Quadrant for Enterprise Wireless E Mail Software Market" by Monica Basso, 29 May 2008. Disclaimer: The Gartner Report(s) described herein, (the "Gartner Report(s)") represent data, research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and are not representations of fact. Each Gartner Report speaks as of its original publication date (and not as of the date of this Offering Memorandum) and the opinions expressed in the Gartner Report(s) are subject to change without notice. (4) IDC, Worldwide Mobile Device Management Enterprise 2009 2013 Forecast and 2008 Vendor Shares, Doc #218680, June 2009. (5) IDC, Worldwide Mobile Middleware 2009 2013 Forecast and 2008 Vendor Shares, Doc # 219186, July 2009. (6) IDC, Worldwide Business Analytics Software 2008 2012 2012 Forecast and 2007 Vendor Shares, Doc # Number 214904, November 2008. 16