E2open, Inc.
August 2014
Peter Maloney, Chief Financial Officer
E2OPEN CONFIDENTIAL | © Copyright 2014 E2open, Inc.
1
Forward Looking Statements
The information contained in this presentation is confidential and proprietary to the Company and is being submitted to
you with the express understanding that you will not release this information, discuss the information contained herein,
make reproductions of or use the information contained herein for any purpose other than evaluating the Company. This
presentation does not constitute an offer to sell or a solicitation of an offer to buy shares of the Company.
This presentation contains “forward-looking” statements that involve risks, uncertainties and assumptions. If the risks or
uncertainties ever materialize or the assumptions prove incorrect, the Company’s results may differ materially from those
expressed or implied by such forward-looking statements. All statements other than statements of historical fact could be
deemed forward-looking, including, but not limited to, any projections of financial information; any statements about
historical results that may suggest trends for the Company’s business and results of operations; any statements concerning
the Company’s plans, strategies or objectives; any statements of expectation or belief regarding future events; and any
statements of assumptions underlying any of the foregoing. These statements are based on estimates and information
available to the Company at the time of this presentation and are not guarantees of future performance. Actual results
could differ materially from the Company’s current expectations as a result of many factors, including but not limited to:
quarterly fluctuations in the Company’s business and results of operations; the Company’s ability to address market needs
and sell its products and services successfully; the effects of competition; and market factors and general economic
conditions. The Company assumes no obligation and does not intend to update these forward-looking statements.
Nothing contained herein is, or should be relied on as, a promise or representation as to the future performance of the
Company.
Logos and trademarks herein are the property of their respective owners.
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
2
E2open Company Overview
E2open Global Footprint
• Founded in 2000 as private trading
exchange for high tech industry
• Initial Public Offering in July 2012
Customer Networks
Trading Partners
• Acquired ICON-SCM in July 2013
• Follow-on offering in January 2014
• Acquired SERUS, Inc. in June 2014
• Provides cloud-based software platform
for collaborative planning and execution
• Customer base in industries with complex
operations
— High Tech/Consumer Electronics
— Consumer Packaged Goods
— Telecom/Network
— Aerospace & Defense
— Automotive & Industrial
NASDAQ: EOPN
• Offices in US, UK,
• Foundation of
• Data Centers in
120+ enterprise- France, Germany, China, California, Illinois,
Malaysia, Scandinavia
level customers
Virginia, China
E2open Business Network Growth
Trading Partners
Users
112,903
130,569
94,708
77,311
27,364
33,390
36,238
May
2011
May
2012
May
2013
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
39,544
•
+69% Growth in
Users
•
+45% Growth in
Trading Partners
May
2014
3
Bottoms-Up Estimate of Long-Term TAM,
By Vertical
# Companies
$500mm-$1bn
(Avg. Deal $500k)
# Companies
$1bn+
(Avg. Deal $1.25mm)
TAM Total
($mm)
High Tech
632
770
$1,278
Telecom
76
199
$287
Aerospace & Defense
42
62
$99
Industrial / Automotive
984
1,515
$2,386
Oil & Gas
90
176
$264
CPG
413
621
$983
SUB-TOTAL
2,237
3,343
$5,297
Other
2,969
5,547
$8,418
TOTAL
5,206
8,890
$13,715
E2open’s
currently
served
verticals
Source: Company estimates. Compares to Gartner 2017 estimate of $13.4bn market for Supply Chain Management.
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
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Supply Chain Problem
How do you manage demand
you can’t predict with supply
you don’t control?
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
5
The Difference: The E2open Business Network
Collaborative Planning & Execution
Organizations working together to improve performance
by continuously solving problems with better information
Commit with Confidence
Shortage
Forecast/
Commit
PO/
Receipts
Inventory
ASN/
In-transit
CM/EMS
Drop Ship
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
Customer
VMI
Sell In /
Sell Out
6
E2open Supply Chain Control Tower
• Role-based predictive analytic dashboards with financial impacts
Cross-network
Analytics
• Continuous “what-if scenarios” with Rapid Resolutions
• Tight integration between decision support / execution layers
• Clear-to-build collaboration across an outsourced network
Network Planning &
Response
• Prioritize for profit: smart allocation of multi-level constraints
• Real-time, rules-based demand segmentation and prioritization
• “Single version of truth” integration to partner backend ERPs
Multi-tier Process
Management
• Multi-tier inventory orchestration across channels and tiers
• Ability to peg forecast and order data across multiple tiers
• Includes design for mfg, contract compliance and mfg visibility
• Rapid onboarding of trading partners via E2 Cloud Connectivity
Trading Partner
Connectivity
• B2B for any trading partner at any level of sophistication
• Leverage largest network of pre-existing connections
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
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Manage the Entire Execution of your Supply
Chain from One Piece of Glass
Cross-network visibility for collaborative execution and rapid resolutions
 HTML5
 Big Data / Fast Data
 Real Time
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
 Continuous Computations
8
Business Network Landscape by SC Insights
Building Business-To-Business Supply Chain Networks –
Who Are the Players? April 24, 2014
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
Lora Cecere
9
Recent News: E2open Acquired SERUS in June, 2014
• E2open and SERUS are combining to extend our market
leadership in Collaborative Planning & Execution
• The combination of SERUS’ product management and
outsourced manufacturing for technology-driven
companies, and the E2open Business Network for
continuity of supply with responsiveness to demand,
uniquely positions E2open to offer our customers end-toend process management for design, source, plan, make
and deliver
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
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About SERUS
• Founded in 2002
• 20 Customers, 65 Employees
• E2open/SERUS joint customers include Intel
• Design For Manufacturing: adds industry-leading, cloud-based
capabilities in collaboration and managing new product
introductions (NPI), and engineering change orders (ECOs)
• Manufacturing Visibility and Contract Compliance: provides
the E2open Business Network with extended visibility into
outsourced semiconductor manufacturing.
• SERUS’ capabilities have a broad range of applications in key
industries such as medical devices, aerospace and defense,
automotive, industrial equipment and telecommunications
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
11
Expanded Supply Chain Business Network
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
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Evolution of Enterprise Apps to the Cloud
SCM
(E2open)
HCM
(Workday,
SuccessFactors)
CRM
(salesforce.com)
ERP
(Oracle, SAP)
1990s
• Pulled CRM out of
ERP into the cloud to
create $18bn+ market
• Offered end to end
CRM from opportunity
to quote
2000s
• Pulled HCM out of
ERP into the cloud to
create $7bn+ market
• Offered end to end
HRM to Financials
2005s
• Offer end-to-end
visibility, planning
and analytics from
strategic to
execution activities
• Become the supply
chain operating
system (SCOS) in
the cloud
• Pull SCM out of ERP
into the cloud and
challenge the leading
ERP vendors
2010s
Note: 2012 market sizes per Gartner.
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
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Leading Supply Chain Organizations Rely on E2open
2014
2013
2012
2011
2010
2009
#1
#2
#3
#4
#5
#6
#7
#8
#9
# 10
E2open Customers Include 6 of the top 10 Gartner Supply Chain Companies
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
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Customers by Vertical
Telecom/Network
11%
Aerospace & Defense
9%
Systems Integrator
3%
Industrial/Automotive
15%
Semiconductors/ Contract
Manufacturers
15%
Medical Devices
2%
Logistics/Distribution
4%
Consumer Goods/Retail
16%
High Tech/Electronics
25%
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
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Partner Strategy
3
2
1
Focus on a comprehensive business of selling
and operating best in class Collaborative
Planning & Execution solutions
Focus on Integrated business plan, joint targeting of
accounts, on-going sales training, mentoring and
support by E2open
Focus on delivery success with tightly integrated training and support
from E2open for business and technical deployment activities
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
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Case Study: Large Oil & Gas Company RFP &
Accenture Partnership
Oil & Gas Company’s Objective
•
To select a supply chain software vendor for Event Management, AutoID and People Tracking for its
largest oil drilling platform
Selection Criteria & Process
•
•
•
16 vendors were evaluated in a rigorous 6-month RFP process, including a proof of concept pilot deployment
Parameters reviewed were feature functionality, ease of deployment, technology architecture and pricing
Accenture introduced E2open to the Oil & Gas company to participate in the RFP
Result
•
•
•
•
•
The Oil & Gas company selected E2open at the end of the RFP process for a multi-year contract
Represents E2open’s largest ever initial deal signed (1)
Accenture led deal. Validates E2open’s go-to-market strategy with key system integrator Accenture
Takes E2open into the large Oil & Gas vertical
Accenture plans to package E2open’s solution and present to additional customers
(1) Based on aggregate committed revenue at the time of contract signing.
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
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E2open Annual Revenue Trend
A visible and predictable revenue stream with continued growth supported through significant
opportunity to further penetrate existing customers while adding new customers
Revenue (Non-GAAP)
($ in millions)
Subscriptions & support
Professional services
$71.4
$73.6
22%
$59.7
39%
40%
78%
60%
FY2012
61%
$57.1
•
Improved revenue mix
•
Accelerated subs &
support revenue growth
$43.2
FY2013
Source: E2open filings.
FY2014
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
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Subscriptions and Support Revenue Trend
Strong growth in Subscriptions and Support Revenue
Subscriptions and Support Revenue (Non-GAAP)
($ in millions)
$57.1
$43.2
$35.8
$16.5
$12.4
FY2012
FY2013
FY2014
Q1 FY2014
Source: E2open filings.
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
Q1 FY2015
19
E2open Bookings and Customer Trends
Strong growth driven by significant customer wins and strong upsell to existing customers
New & Upsell Subs & Support Bookings
Customers
($ in millions)
New Customers
106
Total Enterprise
Customers
76
57
$70.8
43
32
$39.6
24
$29.6
FY 2012
FY 2013
FY 2014
13
15
FY2011
FY2012
Note: FY2014 includes 18 new customers from icon-scm acquisition
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
FY2013
FY2014
20
E2open Backlog Trend
($ in millions)
$161.9
$131.5
Backlog (Unbilled
Deferred Revenue)
$78.6
2/28/2012
2/29/2013
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
2/28/2014
21
Booked Future Revenue and Revenue Mix Trend
Improving mix of business
Non-GAAP Revenue
Booked Future Revenue (Backlog + Deferred Revenue)
($ in millions)
($ in millions)
$80
$200
Professional Services
11%
Subscription & Support
Professional Services
Subscription & Support
$70
22%
$60
14%
39%
$150
$50
21%
Q1 FY2015
Mix of
84%/16%
40%
$40
$100
89%
$30
86%
$50
$20
79%
78%
61%
60%
$10
$0
$0
2/29/2012
2/28/2013
2/28/2014
FY2012
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
FY2013
FY2014
22
E2open Gross Margin
Significantly improved gross margin and positioned to further improve with scale
Total Non-GAAP Gross Profit, Gross Margin and Growth
($ in millions)
$60
$50
66%
64%
$36.4
$38.3
FY2011
FY2012
68%
64%
$48.7
$47.3
FY2013
FY2014
$40
53%
$30
$20
$10
38%
$23.7
$14.2
$0
FY2009
FY2010
Non-GAAP Subscriptions & Support Gross Profit, Gross Margin and Growth
$50
81%
$40
81%
81%
$30
79%
69%
$20
58%
$46.4
$31.9
$35.2
$28.3
$20.7
$10
$12.2
$0
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
Source: E2open filings. Non-GAAP adjusted for non-cash items, one-time charges and non-recurring
revenue accelerated due to contract amendment.
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
23
E2open Financials
Significantly improved business model now focused on growth
FY2014 investment to build indirect deployment and sales channels
Adjusted EBITDA (1)
($ in millions)
$9.4
$10
$5
$2.5
$0.3
$0
($5)
($2.9)
($10)
($15)
($12.2)
($15.2)
($20)
($25)
FY2009
FY2010
FY2012
FY2013
FY2014
Free Cash Flow (2)
($ in millions)
FY2009
FY2011
FY2010
FY2011
FY2012
FY2013
FY2014
$0
($0.7)
($5)
($5.3)
($2.1)
($2.5)
($10)
($10.8)
($15)
($16.5)
($20)
Source: E2open filings.
(1) EBITDA adjusted for non-cash items, one-time charges and non-recurring revenue accelerated due to contract
amendment.
(2) Free Cash Flow defined as Cash Flow from Operations less Capital Expenditures and Acquisition-Related Expenses.
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
24
Non-GAAP Long Term Financial Model
A model with significant operating leverage remaining
Financial Metric
% of Revenue
Historical Performance
LT Target Model
FY2011
FY2012
FY2013
FY2014
Q1 FY2015
Revenue
100%
100%
100%
100%
100%
100%
Gross Margin
65%
64%
68%
64%
67%
77-80%
R&D as a % of Revenue
21%
22%
21%
24%
26%
12-15%
S&M as a % of Revenue
23%
31%
38%
46%
50%
30-33%
G&A as a % of Revenue
9%
10%
11%
13%
13%
8-11%
Adjusted EBITDA Margin
17%
4%
0%
-17%
-18%
25-30%
Source: E2open filings.
Note: Adjusted EBITDA excludes non-cash items, one-time charges and non-recurring revenue accelerated due to contract amendment.
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
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Investment Highlights
Early stages of transforming a $13.4 billion market opportunity(1)
The leading cloud-based Supply Chain Management platform: scalable,
secure, big data, real-time analytics
Expanding blue chip customer base and significant network effect
opportunity
Enterprise SaaS model with attractive fundamentals:

Recurring and predictable revenue

Multi-year contracts

High renewal rates

Significant upsell opportunities
Proven financial track record: strong subscriptions growth, positioned for
margin expansion and significant operating leverage
(1) Source: Gartner. Market forecast for 2017.
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
26
Appendix
E2OPEN CONFIDENTIAL | © Copyright 2014 E2open, Inc.
27
Non-GAAP Reconciliation
Financial Metric
Historical Performance
$ in thousands
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
Q1
FY2014
GAAP Revenue
$32,721
$37,734
$44,377
$55,523
$59,687
$74,938
$71,241
$15,599
$19,031
-
-
-
-
-
(3,531)
2,359
508
587
$32,721
$37,734
$44,377
$55,523
$59,687
$71,407
$73,600
$16,107
$19,618
Plus: Accelerated revenue
from contract amendment &
deferred revenue purchase
accounting adjustment
Non-GAAP revenue
Q1
FY2015
Source: E2open filings.
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
28
Non-GAAP Reconciliation (cont’d)
Financial Metric
$ in thousands
GAAP Subscriptions and
Support Revenue
Plus: Accelerated revenue
from contract amendment
& deferred revenue
purchase accounting
adjustment
Non-GAAP Subscriptions
and Support Revenue
Historical Performance
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013
FY2014
Q1 FY2014 Q1 FY2015
NA
$21,107
$29,976
$39,419
$35,816
$43,793
$56,438
$12,292
$16,306
-
-
-
-
-
(552)
657
79
158
NA
$21,107
$29,976
$39,419
$35,816
$43,241
$57,095
$12,371
$16,464
Source: E2open filings.
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
29
Non-GAAP Reconciliation (cont’d)
Financial Metric
Historical Performance
$ in thousands
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
Q1 FY2014
GAAP Gross Profit
$10,649
$14,164
$23,615
$36,218
$38,057
$51,626
$42,448
$9,014
$11,710
Add (less): Accelerated
revenue from contract
amendment
-
-
-
-
-
(3,531)
2,016
508
508
Add: Deferred revenue
purchase accounting
adjustment
-
-
-
-
-
-
343
-
79
Add: Stock-based
compensation expense
9
85
106
223
203
621
1,641
232
542
Add: Amortization of
acquired intangibles
-
-
-
-
-
-
816
-
350
$10,658
$14,249
$23,721
$36,441
$38,260
$48,716
$47,264
$9,754
$13,189
Non-GAAP Gross Profit
Source: E2open filings.
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
Q1 FY2015
30
Non-GAAP Reconciliation (cont’d)
Financial Metric
Historical Performance
$ in thousands
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
Net income (loss)
($23,044)
($19,843)
($6,518)
$6,643
($225)
($709)
($25,072)
($5,394)
($7,318)
-
-
-
-
-
(3,531)
2,359
508
587
Add: Interest and other
expenses, net
886
1,618
532
259
411
437
762
(51)
33
Add: Provision for income
taxes
190
60
349
33
78
264
(501)
39
(71)
1,598
2,660
2,323
1,859
1,526
1,616
2,029
404
571
54
342
445
577
727
2,245
8,197
845
2,638
($20,316)
($15,163)
($2,869)
$9,371
$2,517
$322
($12,226)
($3,649)
($3,560)
Add (less): Accelerated
revenue from contract
amendment and deferred
revenue purchase accounting
adjustment
Add: Depreciation and
amortization
Add: Stock-based
compensation and
amortization of acquired
intangibles and acquisitionrelated expenses
Adjusted EBITDA
Source: E2open filings.
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
Q1 FY2014 Q1 FY2015
31
Non-GAAP Reconciliation (cont’d)
Financial Metric
Historical Performance
$ in thousands
FY2008
FY2009
FY2010
FY2011
FY2012
FY2013
FY2014
Q1 FY2015
Net cash provided by (used in)
operating activities
($15,331)
($14,607)
($4,401)
$88
($826)
($957)
($11,688)
($2,310)
(2,468)
(1,846)
(924)
(785)
(1,669)
(1,138)
(218)
(71)
-
-
-
-
-
-
1,066
73
($17,799)
($16,453)
($5,325)
($697)
($2,495)
($2,095)
($10,835)
($2,308)
Capital expenditures
Acquisition-related expenses
Free cash flow
Source: E2open filings.
E2OPEN CONFIDENTIAL | © 2014 E2open, Inc.
32
Thank You
E2OPEN CONFIDENTIAL | © Copyright 2014 E2open, Inc.
33