NICE Systems
Investor Presentation
November 2015
Forward Looking Statements Disclaimer
This presentation contains statements, including statements about future plans and expectations, which
constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of
1995. Such forward looking statements are generally stated in terms of the Company’s plans, expectations
and intentions. These statements are based on the current beliefs, expectations and assumptions of the
Company’s management and the current economic environment. Forward looking statements are inherently
subject to significant economic, competitive and other uncertainties and contingencies, many of which are
beyond the control of management. The Company cautions that these statements are not guarantees of
future performance. There are or will be important known and unknown factors and uncertainties that could
cause actual results to differ materially from those expressed or implied in the forward looking
statements. These factors, include, but are not limited to, risks associated with the global economic
environment on the Company’s customer base (particularly financial services firms) potentially impacting our
business and financial condition; competition; changes in technology and market requirements; decline in
demand for the Company's products; inability to timely develop and introduce new technologies, products and
applications; difficulties or delays in absorbing and integrating acquired operations, products, technologies
and personnel; loss of market share; an inability to maintain certain marketing and distribution arrangements;
and the effect of newly enacted or modified laws, regulation or standards on the Company and its products;
and other factors and uncertainties discussed in our filings with the U.S. Securities and Exchange
Commission (the “SEC”). You are encouraged to carefully review the section entitled “Risk Factors” in our
latest Annual Report on Form 20-F and in our other relevant filings with the SEC for additional information
regarding these and other factors and uncertainties that could affect our future performance, and undue
reliance should not be placed upon these statements. The forward-looking statements contained in this
presentation are made as of the date hereof, and the Company undertakes no obligation to update or revise
them, except as required by law.
SUSTENANCE
EXPERIENCES
MONEY
SAFETY
COMMUNITY
SPIRITUALITY
HEALTH
BELONGING
PEOPLE’S PRIMARY NEEDS
MONEY
SAFETY
Disrupted by
technology as
we speak
EXPERIENCES
Technology is
the opportunity
Require a unique
set of capabilities
MONEY
SAFETY
WHY
EXPERIENCES
WE KNOW HOW TO
WE KNOW HOW TO
WE KNOW HOW TO
WE KNOW HOW TO
capture complex
data across
multiple sources
handle massive
amounts of data
implement tons
of analytics
transform
technology to
business use
cases
CUSTOMER
INTERACTIONS
FINANCIAL
CRIME AND
COMPLIANCE
SECURITY
EXPERIENCES
MONEY
SAFETY
Making people’s
experiences
timely and
seamless
Protecting
organizations
and their clients
in a digital world
Ensuring public
safety around
the world
>150
>80%
1986
Countries
Fortune 100
Customers
Founded
~3,300
~25,000
NASDAQ:
Employees
>35
Local Offices
Customers
~1200
R&D Professionals
CREATING
PERFECT
EXPERIENCES
INNOVATION
IN ACTION
• Expand multi channel offering
• Grow cloud solutions
• Increase presence in the mid-market
• Further increase analytics
NICE
ENGAGE &
VIDEO
EMPLOYEE
ENGAGEMENT
MANAGER
INTERACTIONS
IVR JOURNEY
OPTIMIZATION
ROBOTICS
AUTOMATION
PROTECTING
PEOPLE’S
MONEY
INNOVATION
IN ACTION
• Gain dominance in the world of
risk operations
• Serve tier 2 financial institutions
and services
• Convergence of Fraud and Cyber
• Expand into non-FS verticals
HOLISTIC
COMPLIANCE
FRAUD & CYBER
MANAGEMENT
HUB
PROTECTING
PEOPLE
AROUND THE
WORLD
INNOVATION
IN ACTION
• Expand from incident capture to holistic
investigation
• Further scale into fast growing digital
evidence market
NICE INVESTIGATE
NICE
VISION
Empowering
organizations to
work smarter by
unleashing the
power of data
EXECUTE ON
VISION
MANAGEMENT
TEAM ON
BOARD
EFFECTIVE
OPERATIONAL
AND STRATEGIC
PLAN
INCREASE
INNOVATION
ENHANCED GOTO-MARKET
STRATEGY
INTELLIGENCE
AND PHYSICAL
SECURITY
DIVESTITURES
MANAGEMENT
TEAM
ON BOARD
EFFECTIVE
OPERATIONAL
AND STRATEGIC
PLAN
CORPORATE
CFO &
Operations
INCREASE
INNOVATION
CUSTOMER INTERACTIONS
Product
Group
Sarit Sagiv
Miki Migdal
Marketing,
Corp. Dev.
Americas
Eran Liron
Tom Dziersk
Services &
Cloud
EMEA
Barry Cooper
ENHANCED GOTO-MARKET
STRATEGY
PUBLIC SAFETY
Chris
Wooten
FINANCIAL CRIME & COMPLIANCE
Benny
Einhorn
Joe Friscia
HR
APAC
Sigal Gill-More
Feferman
Raghav
Sahgal
INTELLIGENCE
AND PHYSICAL
SECURITY
DIVESTITURES
MANAGEMENT
TEAM ON
BOARD
EFFECTIVE
OPERATIONAL
AND STRATEGIC
PLAN
INCREASE
INNOVATION
ENHANCED GOTO-MARKET
STRATEGY
• Realigning internal processes from R&D to sales
• Disciplined expense management
• Establish shared services
• Align global workforce distribution
INTELLIGENCE
AND PHYSICAL
SECURITY
DIVESTITURES
MANAGEMENT
TEAM ON BOARD
EFFECTIVE
OPERATIONAL AND
STRATEGIC PLAN
INCREASE
INNOVATION
ENHANCED GOTO-MARKET
STRATEGY
INTELLIGENCE
AND PHYSICAL
SECURITY
DIVESTITURES
• Delivering products faster to market
• Increasing patent creation
• Hackathon
• Global talent center
• More efficient and effective R&D process
Robotic
Automation
Multichannel
Customer
Services
NICE
Engage
Audio
Examiner
IVR
Journey
Analytics
Employee
Engagement
Manager
Fraud
Management
Hub
MANAGEMENT
TEAM ON BOARD
EFFECTIVE
OPERATIONAL AND
STRATEGIC PLAN
INCREASE
INNOVATION
• Large portfolio deals
• Expanding footprint within customer
base
• Combining the technologies of
Customer Interactions and Financial
Crime and Compliance
• Increase market share
ENHANCED GOTO-MARKET
STRATEGY
INTELLIGENCE
AND PHYSICAL
SECURITY
DIVESTITURES
MANAGEMENT
TEAM ON BOARD
EFFECTIVE
OPERATIONAL AND
STRATEGIC PLAN
INCREASE
INNOVATION
ENHANCED GOTO-MARKET
STRATEGY
INTELLIGENCE
AND PHYSICAL
SECURITY
DIVESTITURES
• Focusing on synergetic, product driven, enterprise
software businesses
• Streamlining and simplifying the company
• Improving profitability
Q3 2015 Highlights *
Revenue Growth
7% revenue growth, 10%
growth excluding FX
impact
Gross Margin
Increased gross margin
to 69.8% compared to
67.2% last year
Product Revenue
Product revenue
grew 13%
EPS Growth
27% increase to $0.75,
above guidance
Improving Profitability
Increased operating
margin to 25.2%
compared to 18.5%
last year
Guidance
Increased full-year
2015 EPS guidance
* All numbers exclude results from the Intelligence and the Physical Security divisions
** All numbers are Non-GAAP
Strong Growth
REVENUE ($M, Non-GAAP)
GROSS MARGIN (Non-GAAP)
69.8%
$221
67.2%
$208
6.5%
OPERATING MARGIN
(Non-GAAP)
2.6 pp
EARNINGS PER SHARE
$0.75
25.2%
6.7pp
18.5%
($, Non-GAAP)
27%
$0.59
* All numbers exclude results from the Intelligence and the Physical Security divisions
Revenue Breakdown by Business Unit
(Non-GAAP) – Q3 2015 *
FINANCIAL
CRIME AND
COMPLIANCE
26%
CUSTOMER
INTERACTIONS
74%
* All numbers exclude results from the Intelligence and the Physical Security divisions
Revenue Breakdown by Geographies
(Non-GAAP) – Q3 2015 *
APAC
12%
EMEA
AMERICAS
22%
66%
* All numbers exclude results from the Intelligence and the Physical Security divisions
Analytic Applications Growth *
As % of new bookings
60%
49%
49%
Q1 14
Q2 14
53%
Q3 14
Q4 14
55%
48%
48%
Q1 15
Q2 15
Q3 15
Analytic applications are the growth driver of the business
* All numbers exclude the Physical Security division
SUMMARY
Market Leader Large addressable market
that continues to expand, and leader in each
of the markets that we operate in
Innovation A fundamental cornerstone of NICE’s
DNA with a commitment to continuously
accelerate innovation within NICE’s domains of
expertise
Financial Results Successful execution of
operational and strategic plan leads to
strong financial results
Thank you