Jeffrey Keene [email protected] July 29, 2011

Jeffrey [email protected]

July 29, 2011

Concur (CNQR) – Leading provider of on-demand corporate expense management software – uniting

online corporate travel booking with automated expense reporting.

Stock Chart

Concur’s stock has had a great run over the last five years due to its strong competitive position, solid management team, and steady execution.

However, the stock has stalled over the past year – which provides an attractive entry point for a firm that is positioned to grow revenue at least 20%-plus for the next three to five years.

Versus PeersOne-year price chart

Blue=Concur down 5%, Red=salesforce up 50%,Orange=SuccessFactors up 30%, Green=NetSuite

up 140%

Strong Fundamental Picture

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Concur’s solution unites travel bookings and expense reporting – the only one in the market.

The company’s solution remains best in class and faces little to no competition.

Roughly $100 billion annually is spent on corporate travel and entertainment – the 2nd largest controllable cost for organizations.

In my view, the firm is one of the most forward-looking software companies.

Total Available Market

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Management estimates that the company’s core market is only 10% penetrated (1 million serviceable firms with more than 75 employees) and pegs the company’s total available market at $12 billion.

With a current revenue run rate of only $360 million, Concur has significant room to grow.

New Growth Areas

6

Moving down market Management believes that the majority of revenue

long-term could come from SMBs.

Concur Breeze was released last year.

Overseas expansion Management wants to move from 13% of sales to 25%

- 30%.

Overseas revenue could someday approach 50% or more, as many mature software companies receive at least half of their revenue from international locations.

The firm recently released editions in Japan and India – two potential very large markets. These offerings should begin to materially add to revenue by 2013.

New Growth Areas

7

TripIt functionality

Improves Concur’s mobile functionality.

Fills a gap in the company’s product offering.

Should materially impact ‘13 results if not sooner.

Recent partnerships

American Express

Amadeus

Corporate Travel Spending Impact

8

Corporate travel spending has grown for six consecutive quarters - however, we are still not at the dollar spending level witnessed in 2008.

The company was materially impacted by the recession and reduced travel volumes – Concur had been growing its top-line north of 30%.

As corporate travel continues to bounce back, Concur should begin to see customers increase their transaction volumes, leading to additional revenue.

Risks

9

Has the company penetrated its core U.S. enterprise market?

Will Concur be successful in the SMB space?

Will the firm be able to expand significantly overseas?

Recent Quarterly Performance

10.

Actual Guidance Actual GuidanceQ3 2011 19% 18% Beat $0.29 $0.29 In lineQ2 2011 16% 15.5% Beat $0.25 $0.24 BeatQ1 2011 19% 17% Beat $0.30 $0.28 BeatQ4 2010 20% 18% plus Beat $0.30 $0.29 BeatQ3 2010 21% 18% Beat $0.31 $0.28 Beat

Revenue growth Pre-tax non-GAAP EPS

Financial Overview – Annual

(in millions) FY07A

FY08A

FY09A

FY10A

FY11E

FY12E

FY13E

Total Revenue $129 M

$216 M

$248 M

$293 M

$348 M

$430 M

$538 M

Growth 33% 67% 15% 18% 19% 24% 25%

Gross Profit Margin 66% 68% 70% 71% 72% 72% 72%

Non-GAAP Operating Margin

17% 19% 23% 23% 22% 24% 25%

Pre-tax Non-GAAP EPS $0.54 $0.86 $1.14 $1.21 $1.25 $1.70 $2.21 After-tax Non-GAAP EPS

$0.33 $0.52 $0.72 $0.76 $0.84 $1.14 $1.48

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Assumptions: On the top-line, I am forecasting 24% growth next year (including 1 percentage point from acquisitions) based on better than expected revenue from overseas and from TripIt (where I believe management was conservative) as well a better corporate travel environment, leading to increased transactions and additional revenue for the company. For 2013, my expectation is for 25% growth as the six growth areas all begin to materially push up the revenue figure. On the operating margin line, I am projecting a 2 percentage point improve in fiscal 2012 and a 1 percentage point gain in fiscal 2013 as fewer growth initiatives are spent on and the SMB solution begins to help the margin.

Valuation – 2011

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Calendar 2011Market

CapEV

EV/Sales

EV/FCF

Sales Growth EPS Growth

Concur (CNQR) $2,629 M $2,295 M 6.6x 40.4x 20% 22%

salesforce.com $21,845 M $21,560 M

9.9x 50.7x 23% 25%

NetSuite $2,596 M $2,484 M 10.8x 122.0x 19% 30% SuccessFactors $2,434 M $2,067 M 7.3x 39.8x 19% 26% Ultimate Software $1,551 M $1,499 M 5.5x 61.3x 20% 28%

SaaS Fast-Growth Median

$1,551 M $1,499 M 6.6x 41.2x 22% 26%

Valuation – 2012

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Calendar 2012Market

CapEV

EV/Sales

EV/FCF

Sales Growth EPS Growth

Concur (CNQR) $2,629 M $2,295 M 5.4x 29.8x 22% 27%

salesforce.com $21,845 M $21,560 M

8.1x 39.1x 23% 25%

NetSuite $2,596 M $2,484 M 9.1x 70.1x 19% 30% SuccessFactors $2,434 M $2,067 M 6.1x 28.7x 19% 26% Ultimate Software $1,551 M $1,499 M 4.6x 38.6x 20% 28%

SaaS Fast-Growth Median

$1,551 M $1,499 M 5.4x 35.1x 22% 26%