Learning from Industry Cloud Leaders

E M E R G E N C E C A P I T A L P A R T N E R S

INDUSTRY CLOUD

FORUM 2014

L E A R N I N G F R O M T H E L E A D E R S

@ e m e r g e n c e c a p

# I N D U S T R Y C L O U D

Peter Gassner, CEO, Veeva Systems

Marcus Ryu, CEO, Guidewire Software

Dan Yates, CEO, Opower

The Industry Cloud OpportunityPeter Gassner, CEO

®2014 Veeva Systems – Company Confidential veeva.com | 3

VisionBecome the Leading Cloud Solutions Provider to the

Global Life Sciences Industry

ValuesCustomer Success

Employee Success

Speed

®2014 Veeva Systems – Company Confidential veeva.com | 4

Veeva Highlights

Founded in 2007

700+ employees

200 customers, users in 80 countries

Mix of cloud and industry experts

High growth and strong profitability

Fiscal Year Ending January 31

Reconciliation of non-GAAP measures is contained in Appendix.

$29m

$61m

$130m

$210m

$5m $7m

$30m

$47m

FY’11 FY’12 FY’13 FY’14

110%

111%

62%

Revenue Non-GAAP Operating Income

Revenue and Profitability

®2014 Veeva Systems – Company Confidential veeva.com | 5

Veeva Spans an Entire Life Sciences Company

RegulatoryClinical

Trials

Quality and

ManufacturingMedical Marketing Sales

Research & Development Commercial

®2014 Veeva Systems – Company Confidential veeva.com | 6

Veeva Commercial Cloud

®2014 Veeva Systems – Company Confidential veeva.com | 7

Industry Cloud is Disruptive InnovationFrom Nowhere to 4th Most Preferred Life Sciences Software Vendor, IDC Health Insights

Source: IDC Health Insights' Leading Indicators in Life Science IT Spending Survey, 1Q14

Ranking 2014 2013 2012

Vendor Vendor Vendor

1 Oracle Oracle Oracle

2 SAP SAP Apple

3 Symantec Symantec SAP

4 Veeva SAS SAS

5 SAS IBM Microsoft

6 IBM Microsoft Symantec

7 Microsoft Apple IBM

8 Apple Veeva

®2014 Veeva Systems – Company Confidential veeva.com | 8

Industry-specific is the Largest Segment of the Software Market Total Worldwide Software Market Share, 2012

28%

8%

7%

7%6%

5%

5%

5%

5%

4%

4%

3%

3%

10%Vertical Specific Software

Operating Systems

Other Application Software

Database Management Systems

ERP

App Infrastructure / Middleware

Security

CRM

IT Operations

Office Suites

Storage Management

Business Intelligence

Other Infrastructure Software

Other

Source: Gartner 2013

$100B

®2014 Veeva Systems – Company Confidential veeva.com | 9

Cloud Opportunity is GreaterIDC Research Cloud Software Analysis for salesforce.com, September 2012

On Premise Cloud

Five Year TCO per User

48% Cloud Cost

Savings59% IT Labor / Services

21% Infrastructure

20% Software

16% IT Labor / Services

36% Software

1.8x Premium

®2014 Veeva Systems – Company Confidential veeva.com | 10

Industry Cloud Opportunity is GreaterVeeva Systems Estimates

On Premise Cloud

Five Year TCO per User

48% Cloud Cost

Savings

10% Software

36% Software

3.6x Premium

10% Customization

16% IT Labor / Services

59% IT Labor / Services

21% Infrastructure

®2014 Veeva Systems – Company Confidential

“The real advantage of an industry-specific solution is that it eliminates, or

significantly reduces, the need to customize. We can deploy and achieve

business results faster. It is about speed to value.”

CIO, Top 30 Pharma

The Industry Cloud OpportunityPeter Gassner, CEO

© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.

Guidewire Software

Marcus RyuCEO, Guidewire Software

Industry Cloud Forum

3 June 2014

14

© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.

To build software products that transform the global P&C insurance industry…

Guidewire’s Mission

…and to ensure that every customer succeeds in the journey

15© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.

A Ubiquitous $2 Trillion Industry

Personal Lines

Automotive Residential

Earthquake

MortgageTravel

Pet Watercraft Personal Injury

Recreational Vehicle

Unemployment

Commercial Lines

Property Fleet Environmental

Ocean Marine

General Liability

Workers Comp Crime Inland Marine

Professional Liability Directors and Officers Machinery Farm

Business Interruption

Surety

Excess

16© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.

Spending Enormously on IT…

1 Gartner (2011)2 Guidewire estimate

Current2

Legacy

100% = $15 billion Software and Services Spend1

17

© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.

And Dependent on Legacy System

• 30+ year-old technology

• COBOL

• Mainframes

• Paper-intensive

• Hard-coded

Legacy systems lock in legacy strategy

18

© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.

19

Guidewire Proprietary and Confidential.

GROWTH

INDEMNITY LEAKAGEPRODUCTIVITY

EXPENSE

PREMIUMLEAKAGE

OTHER

Economic Stakes of Legacy Replacement

2.5−4.5 points of operating income

OPPORTUNITY:

Source: Guidewire Value Consulting and customer business cases

20

© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.

PolicyCenter

BillingCenter ClaimCenter

Guidewire InsuranceSuite

• Modern architecture

• Full legacy replacement

• Delivered as true product

• Flexible, upgradeable

21© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.

A New Generation

22

© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.

Live

PolicyCenter

BillingCenter ClaimCenter

Mobile & Portals

Data Management

DataHub InfoCenter

InsuranceSuite

PolicyCenter

BillingCenter ClaimCenter

A Platform For Transformation

Claims

Policies

301

534

50

292

56% frequency 17% frequency

policies

claims

24

Guidewire Proprietary and Confidential.

ARIZONA

25

Guidewire Proprietary and Confidential.

MULTI-NATIONALS

Serving A Global Customer Base (partial list)

FINLAND

ITALY

NEW ZEALANDU.S.

GEICO

CANADA U.K. FRANCE

RUSSIA

AUSTRALIA

SOUTH AFRICA

POLAND

MEXICO

PERU BRAZIL

JAPAN

BELGIUM

GERMANY

26

© Guidewire Software, Inc. All rights reserved. Do not distribute without permission.

P&C insurance industry focus100%

Professionals worldwide1,200+

Customers in 19 countries; 110+ live160+

In TTM revenue, growing recurring revenue >20% annually>$300m

28

Guidewire Proprietary and Confidential. Q2 2014

29

Guidewire Proprietary and Confidential. 2

9

Cloud software platform for utilities

30

Guidewire Proprietary and Confidential.

The opportunity

$2.2 trillion utility industry in an era of rapid change

Data-rich cloud software to engage utility consumers

93 utilities worldwide, reaching 32 million of their

consumers

MARKET

PLATFORM

CUSTOMERS

BUSINESS

Note: 710M potential end-users comprised of 650M households and 60M businesses.

710 million potential end-

usersMarket size

Accelerating leadScale of data set, platform

sophistication

Expansion potential10% penetrated with EE

clients

Visibility 90%+ recurring revenue

3

0

31

Guidewire Proprietary and Confidential.

» 23 clients

live with

EE

solution

» Raised B

round of

funding

» First 3

clients live

with Energy

Efficiency

(EE)

solution

» 43 clients

live with EE

and

Custom

Engagemen

t (CE)

solutions

» Raised C

round of

funding

» 63 clients

live with

EE, CE,

and

thermostat

solutions

» Expanded

to Europe

» 87 clients live

with EE, CE,

thermostat,

and

behavioral

demand

response

(BDR)

solutions

» Expanded to

Asia

» 93 clients

live with EE,

CE,

thermostat,

and BDR

solutions

» IPO

» 96

contracted

clients

» more than

100 billion

meter reads

annually

Evolution of the business

32

Guidewire Proprietary and Confidential. 3

2

Utility-focused platform and solutions

Thermostat

ManagementThermostat

Management

Personalization

Engine

Big Data

Analytic

s

Data Integration

System

Concurrent

Outbound

Messaging

Web &

Mobile

Framework

Energy efficiency Demand responseCustomer engagement Thermostat management

33

Guidewire Proprietary and Confidential. 3

3

Data advantage

MORE INSIGHT MORE TECH

52 MILLION energy consumers

300+ BILLION meter read data set

MORE DATA

PROPRIETARYalgorithms

100+ MILLION personalized touch

points

400+ Person years of

software development

70+ Utility websites on

one code base

2010 2011 2012 2013

36B

59B

88B103B

Annual meter reads

34

Guidewire Proprietary and Confidential.

Peter Gassner, CEO, Veeva Systems

Marcus Ryu, CEO, Guidewire

Dan Yates, CEO, Opower