Sybase Mobility Analyst Day

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The Unwired Enterprise Pieter Van der Vorst,
Senior Vice President and CFO Lehman Brothers
2006 Global Technology Conference December 6, 2006
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FORWARD-LOOKING STATEMENTS
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INVESTMENT HIGHLIGHTS

• Differentiated technology for managing and
  delivering information anywhere, anytime to any
  type of device
• Well positioned in growing marketsmobility and
  analytics
• RD investments building product cycle momentum
• Strong cash flow from operations
• Financial strength to fund growth
• Consistent execution

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THE UNWIRED ENTERPRISE
Sybase is exclusively focused on managing and
mobilizing information from the data center to
the point of action
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CONVERGING MARKET DYNAMICS
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TECHNOLOGY INVESTMENTS
Unstructured Data Management
Wireless Portal Development
Data Integration - ETL
Data Integration EII
Mobile Device Management/Security
Mobile Data Synchronization
Mobile Development/ Content Management
Voice Recognition
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TECHNOLOGY ROADMAP
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GO-TO-MARKET STRATEGY
Strategy / Vision
UNWIRED ENTERPRISE
IntegratedDevelopment
InformationAnywhere
IntelligentEnterprise
Trusted Infrastructure
Integrated Development
Markets

• Customer Need Lower Cost/Improve Performance
• Size DB Market Options (DR, HA, etc.) Large
• Competition Few, Large Players

• Customer Need Realize Value from Data
• Size DW Market Integration Large
• Competition Fragmented, Many Players

• Customer Need Extend Data to Edge
• Size Mobility Market Emerging
• Competition Fragmented, Many Players

• Customer Need Speed Development Time
• Size Tools Market Medium
• Competition Fragmented, Many Players

Characteristics
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CUSTOMER MOMENTUM
Information Management Customers
Information Mobility Customers
Mobile POS system
Real-time access to audience data
US NAVY
Mobile delivery solution
Data archiving and real-time retrieval
Mobilizes information to the sales force

• Centralized ERP
• application

Unwired Enterprise Customers
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UNWIRED ENTERPRISE SUCCESS STORY
PEPSI BOTTLING GROUP

• CHALLENGE
• Extend vital intelligence to sales force

SOLUTION SQL Anywhere and ASE

• RESULTS
• Increases sales productivity
• Increases speed-to-shelf
• Reduces out-of-stock situations
• Reduces printing and distribution costs for
  sales materials

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MOBILE 365 A GAME-CHANGING ACQUISITION

• Differentiation Sybase becomes the first
  infrastructure software vendor to offer an
  end-to-end platform that both manages enterprise
  data and provides the last-mile connection to the
  customer.
• Opportunity A global messaging infrastructure
  positioned to enable next-generation
  cross-operator and -network mobile applications.

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OVERVIEW OF SYBASE 365

• Acquisition closed November 8, 2006 for 417
  million in cash (397 million, net of cash)
• A leader in inter-operator mobile messaging and
  content delivery
• Adds 2 new enterprise channels to SYs
  distribution network wireless carriers and
  global content providers
• Generated 90M in revenue for FY ended 3/31/06
• Generates recurring, transaction-based revenue in
  a hosted, service-based delivery model
• Based in Chantilly, VA, with 300 employees and
  major offices in Paris, London, Singapore, and
  multiple data centers and sales offices worldwide
• AvantGo (early 2007) and mFolio (immediately)
  will transfer to the Sybase 365 business unit
  under Marty Beard
• Acquisition expected to be accretive by Q407

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SYBASE 365 BUSINESS MODELS
CUSTOMER EXAMPLES
BUSINESS/REVENUE MODEL
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• Mobile subscriber on carrier A sends text
  message or digital photo to mobile subscriber on
  carrier B
• Verizon, T-Mobile, Vodafone, LEAP, China Mobile,
  NTT DoCoMo, Cingular

Applications Personal SMS and MMS inter-operator
messaging Revenue model transaction-based paid
by mobile operator to Mobile 365

• Mobile content/entertainment package for
  promotional and brand awareness purposes marketed
  to mobile operators for resale to mobile
  subscribers.
• Sony Entertainment, Twenthieth Century Fox

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Applications Mobile content or application
distribution Revenue model revenue share
between Mobile 365, mobile operator and
content/application provider

• The London 2012 Olympic Committee deployed an
  interactive voting campaign through mobile text
  messaging in support of its bid for the 2012
  Summer games.
• Microsoft MSN Hotmail SMS service allows users
  to check email from mobile phones using two-way
  SMS.

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Applications Interactive voting,
desktop-to-device messaging, marketing
campaigns Revenue model revenue share or
transaction-based paid by brand owner to Mobile
365
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SYBASE 365 FINANCIAL IMPACT

• Q406 (as provided on 10/19/06)
• Revenue 10-12 million
• Pro forma diluted EPS immaterial impact
• Approximately 4M of expense related to
  amortization of intangibles
• CY07 (as provided on 11/8/06)
• Revenue 120-125M (18-20 y/y growth)
• Gross margin 45-50
• Pro forma operating margin 6-8
• Pro forma diluted EPS - 0.07 dilution in the
  first three quarters due to loss of interest
  income and slightly accretive by Q407
• Approximately 23M of expense related to
  amortization of intangibles and approximately 9M
  of incremental tax expense
• CY08 (as provided on 11/8/06)
• Revenue 18-20 y/y growth
• Pro forma operating margin 10-12

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LEADERSHIP IN CORE MARKETS
Unwired Enterprise
InformationAnywhere
IntelligentEnterprise
Trusted Infrastructure
Mobile Messaging

• 1 in mobile device management software market
• 1 in small footprint database market
• Information Anywhere Suite

• Touches 70 of SMS domestic traffic
• Originates 50 of MMS domestic traffic
• Sybase 365

• Sybase IQ positioned as a challenger in 2006 DW
  Magic Quadrant
• Sybase IQ
• Sybase Data Integration Suite

• Best-of-breed database technology leader
• ASE 15.0
• Mirror Activator

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SYBASE IS GROWING

• 9 consecutive quarters of total revenue growth
  through Q306

Total revenue 4 2006 YTD
License revenue 13 2006 YTD
Service revenue Flat Y/Y 2006 YTD
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AND INCREASINGLY PROFITABLE

• 4 consecutive years of annual pro forma
  operating margin expansion through 2005

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OVERALL GUIDANCE

• Q406 (as provided on 10/19/06)
• Revenue 245-250 million (including 10-12M
  from Sybase 365)
• Pro forma diluted EPS 0.46
• GAAP diluted EPS 0.34 (including impact of FAS
  123R and approximately 4M for amortization of
  intangibles related to Sybase 365)
• CY06 (as provided on 10/19/06)
• Revenue growth 6
• Pro forma diluted EPS 1.46 (up 16 year over
  year)
• GAAP diluted EPS 1.09 (up 18 year over year)
• Cash flow from operations target 185-190
  million
• CY07 (as provided on 11/8/06)
• Revenue of approximately 1.02 billion (including
  120-125M from Sybase 365)
• Pro forma diluted EPS 1.50-1.52
• Cash flow from operations target 185-190
  million

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SUMMARY
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