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 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: 235 Selecticans PEOPLE: 240+ large enterprises CLIENTS: ~$6 SHARE PRICE: 7.7 Million SHARES OUTSTANDING:

Solutions (pre-Iasta) 1 2 Configuration Contract Management

1 | SOLUTIONS 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

1 | SOLUTIONS Contract Management

2 | SOLUTIONS 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

2 | SOLUTIONS Configuration

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

Solution 3 | 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

Gartner Magic Quadrant Leader

Selectica fills gaps

Growth Drivers 1 2 Channel Expansion Solution Expansion

1 | GROWTH DRIVER Solution Expansion $2.3 SELL-SIDE $500 to $750 CLM Million Billion BUY-SIDE Legal & Regulatory Information Governance Legal Governance, Risk and Legal Enterprise Compliance (GRC) Document Legal Management Management Chargeback Supplier & Rebate Information Management Management Strategic Sales / File/Contract C-Discovery Sourcing/ Marketing Analysis Procurement Contract Recurring Sales Content Sourcing Compliance Revenue Management Optimization Source Management Management to Settle Contract Solutions Deal Lifecycle Configure Management Management Spend Price Quote Analysis The Contract Supplier Proposal Performance Sales Contract Generation E-Signatures Management Management Sources: Forrester, Gartner, and IACCM (Global Contract Mgmt. Association)

1 | GROWTH DRIVER With Iasta $5 Billion TAM Legal & Regulatory Information Governance Legal Governance, Risk and Legal Enterprise Compliance (GRC) Document Legal Management Management Chargeback Supplier & Rebate Information Management Management Strategic Sales / File/Contract C-Discovery Sourcing/ Marketing Analysis Procurement Contract Recurring Sales Content Sourcing Compliance Revenue Management Optimization Source Management Management to Settle Contract Solutions Deal Lifecycle Configure Management Management Spend Price Quote Analysis The Contract Supplier Proposal Performance Generation Sales Contract E-Signatures Management Management Sources: Forrester, Gartner, and IACCM (Global Contract Mgmt. Association)

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

Global Team Now Including UK HQ London ¡ Sales ¡Office ¡ Odessa ¡ Carmel, ¡IN ¡ Development ¡ San ¡Mateo ¡ Corp. ¡Iasta ¡ Corp. ¡Selec1ca ¡ Pune ¡ Costa ¡Rica ¡ Development ¡ Call ¡Center ¡

2 | GROWTH DRIVER Channel Expansion Existing Client New Client Growth Channel Channel • Build sales • Majority of and marketing clients lightly “machine” penetrated • International • Penetrate new expansion divisions • Seat expansion • Up/cross-sell new products and services

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

2 | GROWTH DRIVER Blue Chip Customers Leading companies also depend on Iasta

2 | GROWTH DRIVER 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 • International • Force-multiplier divisions expansion for other growth drivers • Seat expansion • Up/cross-sell new value-added products and services

2 | GROWTH DRIVER Partner Ecosystem HCL Infosys Genpact Integreon Capgemini Legal Accenture Mindcrest Process Legal UnitedLex Outsourcers Legal & (LPOs) Wipro Business Process Regulatory Information Systems Outsourcers Integrators Governance (BPOs) (Sis) Accenture Accenture ADP Capgemini Capgemini Legal Governance, Risk and Capita Group Legal Enterprise Compliance (GRC) Document Legal Deloitte Cognizant Management Management Fizerv Chargeback Fujitsu & Rebate HP Strategic Management Supplier Hitachi File/Contract Contract IBM Sales / C-Discovery Sourcing/ Information Analysis Compliance IBM Marketing Infosys Management Procurement Management Recurring Sales Content Tata Revenue Management Lockheed Consultancy E-Signatures Management Martin Procurement P2P Teleperformance Deal Contract Sourcing NEC West Configure Management Management Price Quote Northrop Wipro Grumman Optimization The ¡Contract ¡ WNS Supplier Proposal SAIC Sales Contract Xerox Global Generation Performance Analytics Services 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 (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) Cash $12,218 Credit facility $5,613 Accounts Receivable 2,494 Accounts payable 1,496 Prepaid expenses & other current 1,009 Accrued liabilities 1,009 assets 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 TAKEAWAYS: • Necessary cash to execute against the business model • Warrants convert @$12.25, ~$8M cash

Summary Pro Forma Income Statement (including Iasta) TAKEAWAYS: • Significantly greater revenue scale • Greater gross margin contribution