Selectica Business Opportunity Blaine Mathieu Chief Executive - PowerPoint PPT Presentation

Contract ¡Management ¡and ¡ Configura0on ¡Solu0ons ¡ Selectica Business Opportunity Blaine Mathieu Chief Executive Officer bmathieu@selectica.com

Forward Looking Statements Certain statements in this release and elsewhere by Selectica are forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements about business outlook, assessment of market conditions, anticipated financial and operating results, strategies, future plans, contingencies and contemplated transactions of the Company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of Company operations, or the performance or achievements of the Company or industry results, to differ materially from those expressed, or implied by the forward-looking statements. In addition to any such risks, uncertainties and other factors discussed elsewhere herein, risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied for the forward- looking statements include, but are not limited to the on-going global recession; fluctuations in demand for Selectica’s products and services; government policies and regulations, including, but not limited to those affecting the Company’s industry; and risks related to the Company’s past stock granting policies and related restatement of financial statements. Selectica undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Additional risk factors concerning the Company can be found in the Company’s most recent Form 10-K, filed by the Company with the Securities and Exchange Commission.

Company Snapshot San Mateo, California HEAD OFFICE: 75 US-based employees PEOPLE: 90 off-shore contractors 120 large enterprises CLIENTS: $6.13 SHARE PRICE * : $29.2 Million MARKET CAP * : 4.8 Million SHARES OUTS. (BASIC): SHARES OUTS. (FULLY DILUTED): 7.1 Million *Market data as of 04/15/2014

Solutions 1 2 Configuration Contract Management

SOLUTIONS 1 | Contract Management Our Our Solutions Differentiators • Contract Lifecycle • Optimize & configure Management to precisely fit customer requirements • Contract Discovery and Analytics (NEW) • Adapt & integrate to any system • Best Practices Consulting • Richest functionality • Implementation Services on the market

SOLUTIONS 1 | Contract Management

SOLUTIONS 2 | Configuration Our Our Solutions Differentiators • Configuration Platform • Ultimate in configurability, extensibility • Model Builder • Constraints-based (not • Best Practices Consulting rules) engine handles • Implementation Services most complex challenges • Battle-tested – $Billions of transactions

SOLUTIONS 2 | Configuration

Historical Overview • Management overhaul • Refocus on customers • Began transition to SaaS • Raised additional capital • New product/price model • Priority on cust. acquisition • Lack of support & service ¡ ¡ • Single major client churn • Business needed refocus on service 9

Current Focus Complete Finish client operational transition improvements to full SaaS Expand Drive beyond 3-pronged CLM to full go-to-market Contract channel Management initiatives Solution

Growth Drivers 1 2 Channel Expansion Solution Expansion

GROWTH DRIVER 1 | Solution Expansion $2.3 SELL-SIDE $500 to $750 CLM Billion Million BUY-SIDE Supplier Performance Management Sources: Forrester, Gartner, and IACCM (Global Contract Mgmt. Association)

GROWTH DRIVER 1 | Contract Discovery • Automated contract discovery and analysis – Get contracts into Selectica CLM quickly and understand what they are • Launched 2/26 • Goals: – Remove perceived barriers – Improve time to value – Double ASPs for relevant deals

GROWTH DRIVER 1 | Now Working on Our Next Move Supplier Performance Management

GROWTH DRIVER 2 | Channel Expansion New Client Channel • Build sales and marketing “machine” • Future international expansion

GROWTH DRIVER 2 | Channel Expansion Existing Client New Client Growth Channel Channel • Build sales • Majority of and marketing clients lightly “machine” penetrated • Future • Penetrate new international divisions expansion • Seat expansion • Upsell new products and services

GROWTH DRIVER 2 | Blue Chip Customers Leading companies depend on Selectica

GROWTH DRIVER 2 | Channel Expansion New Client Existing Client Partner/SI Growth Channel Channel Channel • Majority of • Build sales • Untapped clients lightly and marketing partner penetrated “machine” ecosystem • Penetrate new • Future • Force-multiplier divisions international for other growth drivers expansion • Seat expansion • Upsell new value-added products and services

GROWTH DRIVER 2 | Partner Ecosystem Supplier Performance Supplier Performance Management Management

Experienced Management Team Blaine Mathieu President & CEO Jeff Grosman COO Todd Spartz CFO Patrick Stakenas Chief Strategy Officer Eric Faulkner CIO & Pro Serve Leo Sigal CTO Rose Lee SVP Customer Success Mike Mothersbaugh SVP Sales

Summary Income Statement FY 3/31/13 FY 3/31/14 Q1 Q2 Q3 Q4 FY 2013 Q1 Q2 Q3 YTD Recurring Revenue $2.6 $3.0 $3.1 $3.1 $11.8 $3.2 $3.0 $3.1 $9.3 Nonrecurring Revenue $1.5 $1.7 $1.4 $1.1 $5.8 $1.2 $0.9 $0.9 $3.0 Total Revenue $4.2 $4.7 $4.5 $4.3 $17.6 $4.4 $3.9 $3.9 $12.2 Cost of Revenue $1.6 $1.8 $2.0 $2.1 $7.4 $1.9 $2.0 $2.1 $6.0 Gross Profit $2.6 $2.9 $2.5 $2.1 $10.2 $2.5 $2.0 $1.8 $6.3 Gross Margin 62.7% 62.3% 56.1% 49.7% 57.8% 56.4% 50.4% 46.0% 51.1% Operating Expense $3.3 $3.3 $3.6 $3.8 $14.0 $4.7 $3.5 $4.0 $12.3 Operating Income/(Loss) ($0.7) ($0.4) ($1.1) ($1.8) ($3.9) ($2.3) ($1.6) ($2.2) ($6.0) Other Expense/(Loss) $0.0 $0.5 $0.0 $0.3 $0.9 $0.2 ($0.9) ($0.0) ($0.8) Net Income/(Loss) ($0.7) ($0.9) ($1.1) ($2.1) ($4.7) ($2.4) ($0.5) ($2.1) ($5.0) TAKEAWAYS: • Recurring and nonrecurring revenues are stabilizing • Longer-term path to return to historical gross margins • Revenue growth leverages across stable fixed cost base

Summary Balance Sheet Cash $9,721 Credit facility $6,234 Accounts Receivable $4,040 Accounts payable $1,002 Prepaid expenses & other current $538 Accrued liabilities $753 assets Total current assets $14,299 Deferred revenue $5,275 Total current liabilities $13,264 Long-term deferred revenue $816 Total liabilities $14,080 Common stock, 3,864 outstanding Additional paid-in-capital $4 Treasury stock 96 shares at cost $273,067 Property & equipment, net $317 Accumulated deficit ($472) Capitalized software $661 Total stockholders’ equity ($271,362) Other assets $40 Total liabilities & stockholders’ equity $1,237 Total assets $15,317 $15,317 TAKEAWAYS: • Necessary cash to execute against the business model • Warrants convert @$12.25, ~$8M cash

Milestones to Measure SLTC • Expansion in recurring revenue • Improvement in nonrecurring revenue • Recovering gross margins • Increasing billings • New solutions added to product suite • Strategic partner announcements

Market Consolidation CLM CPQ Average ¡ acquisi0on ¡ EV/Rev ¡ mul0ples ¡ ACQUIRED ¡ ACQUIRED ¡ BY ¡ 2011 ¡– ¡2013 ¡ ¡ BY ¡ORACLE ¡ SCIQUEST ¡ 7.1X ¡ ACQUIRED ¡ ACQUIRED ¡ BY ¡ WEBCOM ¡ SAP ¡ SLTC ¡EV/ PENDING ¡ ¡ ACQUIRED ¡ Rev: ¡ ¡ ACQUISITION ¡ BY ¡IBM ¡ ¡BY ¡PRO* ¡ 1.5X ¡ ¡ *PROS ¡Holdings, ¡Inc. ¡(NYSE: ¡PRO) ¡

Overhauled management team Attractive $ Business valuation realigned/ refocused Reasons to Invest Largely untapped customer base to SaaS upsell and further customers penetrate increasing Growth through solution expansion

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