SciQuest Master PowerPoint Presentation

Leadership in a changing environmentSciQuest as a Case StudyStephen J. WieheForward-Looking StatementsThis presentation contains forward-looking statements. These statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control and that could materially affect actual results, levels of activity, performance, or achievements. Other factors that could materially affect actual results, levels of activity, performance or achievements can be found in SciQuest's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission. If any of these risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary significantly from what we projected. Any forward-looking statement you see or hear during this presentation reflects our current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to our operations, results of operations, growth strategy, and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise.SciQuest transformation timeline

Our key leadership concepts

My leadership misconceptions

Principles we live byDiscussion points3The Story of Questie

A Little Beaker and a Lot of Money$375M of Invested Capital

$2.2B Market CapitalizationEarly 2000

$60M Market CapitalizationLate 2000

SciQuest.comA B2B Exchange for lab suppliesAmazon.com for the lab> 500 Employees$25M per Quarter cash flow burn(2 Quarters operating cash in bank)$64M Revenues2.5% Gross Margin (revenue less cogs) *$3,200 per employeeMarket Cap (00) $2.2BEnterprise Value less than $0A bank, a web site, a publishing company and a software companyA charismatic CEOA proud and headstrong culture1995: Founded1999: IPO2000: Dot com crashFeb 2001: New CEOTimelineWe are a family.We are changing the world.Its not about the numbers its about doing something different.Our culture is special its something we are very proud of.Profits dont matter they will come with time.We cant be wrong we were worth over $2B.Its only a short-term valuation problem in that the market doesnt really understand us right now.We are a new economy company.The MindsetA B2B Exchange for lab suppliesAmazon.com for the labUnderstand how value was created500 EmployeesTerminated over 425 Employees$25M per Quarter cash flow burn2 Quarters operating cash in the bank$2M per Quarter cash flow burn$50M at year end 00$64M Revenues2.5% Gross Margin*$3,200 per employeeSubscription fees80% Gross MarginMarket Cap (00) $2.5BWent private 2004/IPO 2010Enterprise Value $0Enterprise Value $25.25M$375M of Equity raised$20M of Equity raisedIts all about the visionIts all about our customers, shareholders and employeesWe are family cultureA new culture, which is our culture today.The Change Company overviewSciquest TODAYMarket leader with $500M market capSciQuest is the largest publicly held pure-play provider of cloud-based business automation solutions for spend management offering deep domain knowledge and a leading, customer-driven portfolio.500+ customers Proven ROIHighly satisfied customers500 global employeesBased in Cary, N.C.2011Acquired AECsoft2004Taken Private1999IPONew Management2001Taken Public2010Founded1995Acquired Upside20122012Acquired Spend Radar10Acquired CombineNet2013SciQuest GROWTHSciQuest is the largest publicly held pure-play provider of cloud-based spend management solutions offering deep domain knowledge and a leading, customer-driven portfolio. We are 500+ customers strongWe address a multi-billion dollar, and growing, spend management software market with differentiated cloud-based platformWe have proven ROI and customer success with highly-satisfied customer baseWe are based in Cary NC, and have 500 global employees

Brief history:SciQuest was founded in 1995 as an eCommerce business-to-business exchange for scientific products and conducted an initial public offering in 1999. In 2001, we brought in a new management team, exited the business-to-business exchange model and began selling our on-demand strategic procurement and supplier enablement solution.SciQuest was subsequently taken private in 2004. In January 2011, we acquired all of the capital stock of AECsoft, a leading provider of supplier management and sourcing technology. In July 2012, we acquired Upside Software, Inc., a worldwide leader in contract lifecycle management (CLM) solutions.In September 2012, we acquired Spend Radar LLC, a rapidly growing provider of fast, easy and flexible spend analysis software. In September 2013, we acquired CombineNet, a market-leading advanced sourcing software company.

Today, we deliver cloud-based business automation solutions that help you manage your spending, suppliers, contracts, sourcing, shopping, inventory, and accounts payable more efficiently. Our solutions enable greater visibility and compliance organization-wide to help you gain control, optimize efficiencies, and reduce spend.

I replaced the original slide with this updated slide from the Sales Pitch.

Investment highlightsMulti-billion dollar, growing addressable marketLeading provider of spend management software with differentiated cloud-based platformMultiple long-term growth driversProven ROI and customer success withhighly-satisfied customer baseRecurring revenue driven by multi-year subscription agreementsGenerating attractive long-term growth rates, profitability and cash flow conversion

NASDAQ:SQIConsistent Revenue Growth 34 Consecutive Quarters of Growth($ millions)201120122013updatedOur key leadership conceptsKey Leadership ConceptsCollaboration over consensusRespect and recognition for the individualFacts then opinionsProper use and respect of powerFocus on the right thingsEnvironmentIncentive programsShareholder value

My leadership misconceptionscultureis a tangibleresult ofleadershipLeadership

managementandare not the same thingsleadershipLeadership is a processLeadership Misconception #1Leadership is a behavior

Why?You lead others by what you do, not what you say.Transparency is a vehicle, trust is the key.It must be continual, not periodic.

Leadership Misconception #1A leader needs to be ready with an answerLeadership Misconception #2A leader needs to be ready with a question

Why?Initial questions allow for clarification of the issue or problem.Questions allow for conflict without stating such.Questions allow you to send a polite message of incomplete staff work without embarrassment.Asking for input or ideas could be viewed as weak or losing power, which is a fallacy. Leadership Misconception #2A leader needs to be a great speakerLeadership Misconception #3A leader needs to be a great speaker, but an even better listener

Why?Seek to understand then be understood.At the center of every joke is a nugget of truthYou can listen and think faster than you can talk and thinkLeadership Misconception #3Great ideas come from debate and conflictLeadership Misconception #4Great ideas come from an open, constructive and positive discussion driven by questions

Why?Facilitator style leaders are more powerful than Directive style leaders.Conflict creates situations where ideas and people become positions and positions are very hard to change.Everyone contributes and therefore buys-in to the idea. The situation will change over time and course is easier when everyone was part of the original idea.Three parts to every conversationLeadership Misconception #4A leader mandates changeLeadership Misconception #5A leader mandates change can mandate change in times of crisis; in all other times, a leader must coax change

Why?CEOs are used to being direct tell is the normal behavior; Asking by how or why are more powerful and longer lasting.Focus on positive reinforcement, not negative.Removal of stress from a situation yields better results than the addition of stress.Leadership Misconception #5A leader needs to be toughthey set the standardthey need to maintain power and an air of authorityLeadership Misconception #6A leader needs to demonstrate the correct use of:Leadership Misconception #6PowerFeedbackAngerRespectWhy?Power: Give power and authority away daily. Understand where the power is in a meeting and respect the lack of it.Feedback: Asking for it opens a dialog. If you are willing to receive it, you are teaching others how to receive it so they are more willing to take it.Anger: Its counterproductive. Stops all dialog and problem solving at the worse possible time when you need it. People will pass it on.Respect: Always give respect unconditionally then you can expect it back.Great leaders are successful peopleLeadership Misconception #7Great leaders surround themselves with successful people

Why?Growth and opportunity come from below, not above.Dont think of problems as personal. Great leaders always put needs of the company, its customers and employees first.Leadership Misconception #7Principles we live byPrinciples We Live ByHave an open kitchen (rule of Buca di Beppo)

Measure outputs, coach inputs

First the bad news

Set the table

Time of warning = time of delay

Feedback is a giftFind a mentor and ask for feedbackSay THANK YOU for feedback all feedbackSay what needs to be said, right time, right way

Lead or be ledDeal in facts seek the truthMicrodata not micromanagementYou cant communicate enough!Focus on defining the problem; it should be 95% of the effort

Its ok to call Time out

Focus on the journey not the destination

Trust & respect are key ingredients in successYou have to give them first before you can earn themThey simplify all interactionsIt should be our #1 priority

Leading is lonely

Mandates fail

Collaboration over consensus

Investment is a requirement

Some thoughts on education36Education is our #1 priorityPerception versus reality

Whats the goal?

We cant legislate growth and successWe need to get out the way and let it happen naturally

Invest in many small initiatives not a few largeSome thoughts on our Economy3738