Selectica Business Opportunity Blaine Mathieu Chief Executive - - PowerPoint PPT Presentation

Contract ¡Management ¡ Strategic ¡Sourcing ¡ Configura1on ¡

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

• therwise. 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.

HEAD OFFICE:

San Mateo, California

PEOPLE:

235 Selecticans

CLIENTS:

240+ large enterprises

Company Snapshot

SHARE PRICE:

~$6

SHARES OUTSTANDING:

7.7 Million

Solutions (pre-Iasta)

Configuration Contract Management

1 2

Contract Management

• Contract Lifecycle

Management

• Contract Discovery

and Analytics (NEW)

• Best Practices Consulting
• Implementation Services
• Optimize & configure

to precisely fit customer requirements

• Adapt & integrate to

any system

• Richest functionality
• n the market

SOLUTIONS

1 |

Our Solutions Our Differentiators

1 |

Contract Management

SOLUTIONS

Configuration

• Configuration Platform
• Model Builder
• Best Practices Consulting
• Implementation Services
• Ultimate in configurability,

extensibility

• Constraints-based (not

rules) engine handles most complex challenges

• Battle-tested – $Billions
• f transactions

Our Solutions Our Differentiators

SOLUTIONS

2|

2|

Configuration

SOLUTIONS

Selectica Historical Overview

9

¡ ¡

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

Iasta ¡

Recognized SaaS provider § 15 years of delivering technology to global companies and suppliers § Leader in the Strategic Sourcing - Gartner Magic Quadrant 2013 A Global Company § Sales & Delivery Offices ü Global HQ: Indianapolis, USA ü Europe HQ: London, UK § Experienced / global partner channel Leading with proven products & services § Spend Analysis / Procurement Intelligence § Strategic Sourcing (eRFx, Auctions, Optimization) § Contract Management / Contract Authoring § Supplier Information & Performance Management § Iasta Advisory Services / Training

Solution 3 | Iasta

Gartner Magic Quadrant Leader

Selectica fills gaps

Growth Drivers

Channel Expansion Solution Expansion

1 2

Solution Expansion

Sources: Forrester, Gartner, and IACCM (Global Contract Mgmt. Association)

$500 to $750 Million

SELL-SIDE BUY-SIDE

CLM

$2.3

Billion

1 |

GROWTH DRIVER

Contract Compliance Management C-Discovery File/Contract Analysis Chargeback & Rebate Management Contract Lifecycle Management Proposal Generation Sales Contract Management E-Signatures Legal Document Management Enterprise Legal Management Recurring Revenue Management Configure Price Quote Spend Analysis Sourcing Optimization Legal Governance, Risk and Compliance (GRC)

Strategic Sourcing/ Procurement Legal & Regulatory Information Governance

Sales Content Management Deal Management Source to Settle Solutions

The Contract

Sales / Marketing

Supplier Information Management Supplier Performance Management

With Iasta

GROWTH DRIVER

1 |

Contract Compliance Management C-Discovery File/Contract Analysis Chargeback & Rebate Management Contract Lifecycle Management Proposal Generation Sales Contract Management E-Signatures Legal Document Management Enterprise Legal Management Recurring Revenue Management Configure Price Quote Spend Analysis Sourcing Optimization Legal Governance, Risk and Compliance (GRC)

Strategic Sourcing/ Procurement Legal & Regulatory Information Governance

Sales Content Management Deal Management Source to Settle Solutions

The Contract

Sales / Marketing

Supplier Information Management Supplier Performance Management

Sources: Forrester, Gartner, and IACCM (Global Contract Mgmt. Association)

$5 Billion TAM

2|

Channel Expansion

New Client Channel

• Build sales

and marketing “machine”

• International

expansion

GROWTH DRIVER

Global Team Now Including UK HQ

Pune ¡

Development ¡

San ¡Mateo ¡

• Corp. ¡Selec1ca ¡

London ¡

Sales ¡Office ¡

Odessa ¡

Development ¡

Carmel, ¡IN ¡

• Corp. ¡Iasta ¡

Costa ¡Rica ¡

Call ¡Center ¡

2|

Channel Expansion

Existing Client Growth Channel New Client Channel

• Build sales

and marketing “machine”

• International

expansion

• Majority of

clients lightly penetrated

• Penetrate new

divisions

• Seat expansion
• Up/cross-sell

new products and services

GROWTH DRIVER

Blue Chip Customers

Leading companies depend on Selectica

GROWTH DRIVER

2|

Leading companies also depend on Iasta

Blue Chip Customers

GROWTH DRIVER

2|

Partner/SI Channel

• Untapped

partner ecosystem

• Force-multiplier

for other growth drivers

Channel Expansion

New Client Channel

• Build sales

and marketing “machine”

• International

expansion

• Majority of

clients lightly penetrated

• Penetrate new

divisions

• Seat expansion
• Up/cross-sell

new value-added products and services Existing Client Growth Channel

GROWTH DRIVER

2|

SAIC Northrop Grumman NEC Lockheed Martin IBM Xerox Global Services WNS Tata Consultancy West Wipro Teleperformance Infosys IBM HP Fizerv Hitachi Fujitsu Deloitte Legal Process Outsourcers (LPOs) Cognizant Capita Group Capgemini Accenture Systems Integrators (Sis) Capgemini ADP Accenture Wipro UnitedLex Mindcrest Integreon Business Process Outsourcers (BPOs) Infosys HCL Genpact Capgemini Accenture Legal

Contract Compliance Management C-Discovery File/Contract Analysis Chargeback & Rebate Management Proposal Generation Sales Contract Management Legal Document Management Enterprise Legal Management Recurring Revenue Management Configure Price Quote Legal Governance, Risk and Compliance (GRC)

Strategic Sourcing/ Procurement Legal & Regulatory Information Governance

Sales Content Management Deal Management

Sales / Marketing

Procurement Contract Management Supplier Information Management Analytics Sourcing P2P Supplier Performance Management Optimization

E-Signatures

The ¡Contract ¡

Partner Ecosystem

GROWTH DRIVER

2|

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

(Final quarter not including Iasta)

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

(Final quarter not including Iasta)

TAKEAWAYS:

• Necessary cash to execute against the business model
• Warrants convert @$12.25, ~$8M cash

Cash $12,218 Credit facility $5,613 Accounts Receivable 2,494 Accounts payable 1,496 Prepaid expenses & other current assets 1,009 Accrued liabilities 1,009 Total current assets $15,721 Deferred revenue 4,556 Total current liabilities 12,674 Long-term deferred revenue 433 Other long-term liabilities 26 Total liabilities 13,133 Property & equipment, net 284 Capitalized software 1,280 Other assets 36 Total stockholders’ equity 4,188 Total assets $17,321 Total liabilities & stockholders’ equity $17,321

Summary Pro Forma Income Statement (including Iasta)

TAKEAWAYS:

• Significantly greater revenue scale
• Greater gross margin contribution

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

Reasons to Invest

Overhauled management team Business realigned/ refocused Growth through solution expansion Attractive valuation Largely untapped customer base to upsell and further penetrate Transition to SaaS almost complete

$

THANK YOU