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NetSuite and the NetSuite Logo are registered service marks of NetSuite Inc. (Updated as of November 6, 2013) NetSuite Corporate Overview

NetSuite Corporate Overvie · NetSuite Corporate Overview. ... NetSuite Sage Microsoft Epicor Oracle Totvs SAP-1% -2%-3% 4% 4% 9% 49% Top 15 WW FMS Vendors: 2012 Revenue Growth %

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NetSuite and the NetSuite Logo are registered service marks of NetSuite Inc.

(Updated as of November 6, 2013)

NetSuiteCorporate Overview

Cautionary Note – Forward Looking Statements

│ 2

This presentation contains “forward-looking” statements that involve risks, uncertainties and assumptions relating to expectations, plans, and prospects including expectations relating to NetSuite’s future growth and the future growth of the cloud computing market. These statements are based on information available to NetSuite management at the time of this presentation.

Actual results could differ materially from our current expectations as a result of many factors, including, but not limited to: the market for on-demand services may develop more slowly than expected or than it has in the past; and adverse or unpredictable macro-economic conditions or reduced investments in on-demand applications and information technology spending. These and other risks and uncertainties associated with our business are described in our annual report on Form 10-K for the period ending December 31, 2012 and any subsequently filed periodic reports on Form 10-K or 10-Q.

We assume no obligation to, and do not intend to, update any forward looking statements.

Customers who purchase our services should make sure that their decisions are based on features that are currently available. Please be advised that any unreleased services or features from NetSuite referenced in this presentation or other public statements are not currently available and may not be delivered on time or at all.

• Cloud computing: The future of software• 12+ year head-start, not even a close #2• ERP: The “system of record”

– ERP has largest TAM* of any business app category– Suite approach expands TAM to multiple categories

• Execution: Next-phase initiatives succeeding– Verticalization of the suite– Moving up market and going global with OneWorld– Expand your commerce business to an omnichannel

business with NetSuite SuiteCommerce– NetSuite platform enabling partner ecosystem

Why NetSuite: For Investors

│ 3*Total Addressable Market

Powers Enterprises Powers DisruptiveInnovators

• World’s most deployed cloud ERP• Used by 16,000+ organizations• Fastest growing Financial

Management Software globally*• Used across 110+ countries

• Founded in 1998• Publicly traded on NYSE: “N”• Offices in 11 countries• 2,200+ employees• 2012 revenue: $308.8M

NetSuite: Quick TakePerformanceBackground

*Source: Gartner, March 2013

Mission StatementNetSuite Provides Companies

Around the Globe, Cloud-based,Unified Systems that Deliver

Unprecedented Capabilities toDrive their Business

NetSuite Solution

Today’s Businesses Struggle with an Application Hairball

│ 7

Warehousing

AccountingSupport

SFA

Web

One System for Running a Business

│ 8

CEO CFO

Sales Rep/Manager

Support Manager

ShippingManager

Customers

Vendors Partners

ECOMMERCE

ERP

PSA

CRMSINGLEDATA

SOURCE

EcommerceManager

Solution Overview

│ 9

• NetSuite: Modular cloud business suite– ERP, CRM, PSA, Ecommerce

• For mid-sized companies to large enterprises

• NetSuite OneWorld: Global management

• NetSuite SuiteCommerce

• NetSuite OpenAir: Enterprise PSA

• SuiteCloud Platform

│ 10

│ 11

Computer

POS

Tablet

Facebook/Social

Phone

Today’s Multi-Touchpoint World

Centralization is Required to Meet Customer/Business Needs

│ 12

│ 13

Transforms NetSuite Operational System Into a Commerce Platform That Provides Complete Flexibility to:

Support Any Touchpoint

Support Any Business Model

Innovate Rapidly to Embrace anEver-changing Landscape

Integrate the Back-office Commerce Operation

SuiteCommerce Powers The Global Expansion of Omnichannel Commerce

│ 14

Global Business Management

Global Challenges Even Greater

Warehousing

Accounting Support

SFA

Web

16│

Australia

REG

ION

GLO

BA

L

AMERICAS EMEA APAC

Worldwide HQ

Canada USA Brazil France Germany Japan ChinaUK

CO

UN

TRY

Global Challenges Even Greater

CO

UN

TRY

REG

ION

GLO

BA

LMulti-Sub, Multi-National,

Multi-Company Management

AMERICAS APACEMEA

Worldwide HQ

Global Business Management

ECOMMERCE

ERP

PSA

CRM+SINGLEDATA SOURCE

│ 19

│ 20

Currency

Quota

Forecast

Orders

Taxation

Partners

Language

Website

LOCAL

Consolidation

Sales

Revenue

Dashboards

CurrencyManagement

Compliance

Control

Multiple Websites

GLOBAL

19+ Languages, 190+ Currencies

Why Businesses Choose NetSuite:

• Last ever ERP upgrade – No “version-lock”

• Eliminates application hairball

• Deploys in months, not years

• Modern, flexible and evolving

• Dramatically lowers IT cost

│ 21

World’s #1 Global Cloud Suite

ECOMMERCE

ERP

PSA

CRMSINGLE DATASOURCE

SINGLE DATASOURCE

SINGLE DATASOURCE

Qualcomm's operations span about 140 locations worldwide with various local software systems. NetSuite OneWorld presents us with an opportunity to begin centralizing some parts of our Ecommerce systems and further streamlining the management process.

│ 22

#1 Cloud ERP for the Enterprise

NetSuite is increasingly considered a safe choice for evaluation by many of the world's largest enterprises as they look to consolidate and revise their mid-tier applications.

Source: Gartner, June 2011│ 23

• Billions of customer requests per month

• Millions ofunique loginsper quarter

• Automated upgrades

• Redundantdatacenters

Infrastructure

Application

Developer Tools

Unlimited Customization ofEnterprise Infrastructure

│ 24

Speed, Cost Efficiency and PowerGlobal Reach

150%+and 6 month

payback*Nucleus Research* Based on Nucleus Customer Case Study

• NetSuite for ERP, CRM & Ecommerce

• 100 subs in 135 locations including USA, Mexico, Brazil, Canada and Australia

• Supports M&A strategy across 140 counties

• Replaced 14 disparate business applications

10% Implementation effort vs. typical ERP50-65% IT staff efficiency savings20-50% Faster financial close time50%+ Quote-to-cash acceleration

ROI

Nucleus Research 2008 and 2010

Slashes IT Costs

Proven Results

Best Known Brands Run NetSuiteSelects NetSuite OneWorld for business management in subsidiaries and emerging markets

Expanded to international markets with NetSuite OneWorld in under four months

RMDM unit using NetSuite OneWorld and SuiteCommerce across its 13,000+ partners

Selects NetSuite SuiteCommerce to drive online revenue

Using NetSuite across 2,700+ users in 15+ countries -and across 3,000+ client projects and 1,500+ products and skills

│ 26

Cloud Suite of Choice for Leading BusinessesSoftware/Internet WD Manufacturing Services Etail/Retail Nonprofit Enterprises

The Undisputed Cloud ERP Leader

│ 28

NetSuite is the most successful ERP suite SaaSprovider operating in terms of active customers, international presence and functionality offered across the product.

Source: Gartner, June 2011

Market Opportunity

Cloud is a Priority

│ 30

Technology affecting IT

#

Of companies plan to increase cloud spend over next 12 months

50+%Faster growth than worldwide IT market

4XWorldwide and Regional Public IT Cloud Services 2011-2015 Forecast, IDC, June 2011

Reimagining IT: The Gartner 2011 CIO Survey, Gartner, January 2011The ROI Of Cloud Apps, Forrester, June 2011

$32B Addressable MarketCloud Growth Outstripping On-premise

CRM$11BERP

$21B

Forecast: Software as a Service, Worldwide, 2010-2015, 1H11 UpdateForecast: Enterprise Software Markets, Worldwide, 2008-2010, 2Q11 Update

Market Share: All Software Markets, Worldwide, 2010

Cloud ERP growth versus market

Total ERP Cloud ERP

16

14

12

10

8

6

4

2

0

7.9%

14.3%

% C

AG

R T

hro

ug

h 2

015

Cloud CRM growth versus market

Total CRM Cloud CRM

16

14

12

10

8

6

4

2

0

9.5%

12.5%

% C

AG

R T

hro

ug

h 2

015

31│

Source: Gartner

NetSuite 2012’s Fastest Growing Worldwide Financial Management System Vendor

│ 32

SAPTotvsOracleEpicorMicrosoftSageNetSuite

-3%-2%-1%4%4%

9%

49%

Top 15 WW FMS Vendors: 2012 Revenue Growth %

• NetSuite is the only pure cloud vendor in Top 15• NetSuite is #12 overall by market share • All NetSuite growth is organic

Market Share: All Software Markets, Worldwide, 2012, Published March 2013Chart created by NetSuite based on Gartner Market Share Note

NetSuite SuiteCommerce Addresses Accelerating Move to Online Retail

33

Forecast: US Online Retail Forecast, 2010 To 2015

2009 2010

% change

% of total retail

% of total retail(excluding grocery)

February 2011 “US Online Retail Forecast, 2010 To 2015”

2011 2012 2013 2014 2015

11% 13% 12% 10% 10% 8% 8%

8% 8% 9% 10% 10% 11% 11%

11% 11% 12% 13% 14% 15% 15%

$259$279

$240$218

$197$176

$157

(in billions)

Source: Forrester Research Online Retail Forecast, 2010 To 2015 (US)

Enterprise Opportunity

The Two-Tier Opportunity:

35│

The Rise of Two-Tier

2009 2011

60

50

40

30

20

10

0

enterprises now opting for two-tier

48%

│ 36

1: Source: How to Evaluate a Vendor's Commitment to the Cloud and SaaS2: Source: Develop a Strategic Road Map for Postmodern ERP in 2013 and Beyond

3: Source: Understand the Deployment Options for a TwoTier ERP Suite Strategy, May 2013

What is two-tier ERP?

The concept of a single ERP suite that meets all of an enterprise's needs, particularly in large, complex and diverse organizations, is no longer tenable.1

A tiered ERP suite strategy is the use of ERP suites from different vendors in two or more levels of the organization — for example, corporate headquarters and local subsidiary operations.2

Adopting a two-tier ERP strategy can dramatically reduce regional business unit implementation times, provide greater agility and improve operational costs. CIOs understanding its definition, the rationale for selection and the diverse deployment options is key to a successful implementation.3

China Vietnam

WorldwideOperations

NetSuite’s Two-Tier Solution

CORPORATERunning Oracle/SAP

E-Business Suite Financials

US Operations

NetSuite CloudRunning

NetSuite OneWorldSuiteCloud

Connect

NetSuite CloudRunning

NetSuite OneWorld

Two-Tier: Driving Business Velocity

│ 38

Mergers and Acquisitions:Cost effective ERP within subsidiaries

Divestitures:Shed legacy ERP with lean, customizable cloud ERP

Emerging Markets & Products:Rapidly deploy ERP with minimal CapEx and IT

If we used a traditional enterprise ERP platform worldwide, it would require significant capital investment and a lot of resources in each country. NetSuite provides everything we need for our subsidiaries.

— Ysmael Baysa, CFO

$50b+ Revenue Jollibee Leverages NetSuite for Two-Tier ERP

39│

Enterprise Partnerships to Drive Success

│ 40

Accenture’s unmatched industry expertise and NetSuite’s sophisticated cloud leadership pave the way forward for global enterprises.

Paul DaughertyChief Technology Architect

Financial Highlights

Sustained Revenue Growth

42│

$ millions$320.0

$300.0

$280.0

$260.0

$240.0

$220.0

$200.0

$180.0

$160.0

$140.0

$120.0

$100.0

$80.0

$60.0

$40.0

$20.0

$0.02002 2003 2004 2005 2006 2007 2008 2009 2010

$3.1 $8.3$17.7

$36.4

$67.2

$108.5

$152.5

$166.5

$193.1

2011

$308.8

$236.3

2012

2012 Financial Highlights

• Revenue increased 31% year-over-year to $308.8 million

• Operating cash flow up 50% year-over-year to $54.3 million

• Non-GAAP Net Income increased 77% to $19.1 million

│ 43

Q3 2013 Financial Highlights

• Revenue of $106.9 million, a 34% year-over-year increase

• Operating cash flow of $14.6M

│ 44

2012 Financial TrendsNon‐GAAP Net Income

($ Thousands)Non‐GAAP Gross Margin

74%

73%

72%

71%

70%

69%

68%

67%

Short‐Term Deferred Revenue($ Thousands)

Cash Flow from Operations($ Thousands)

20,00018,00016,00014,00012,00010,000

8,0006,0004,0002,000

-(2,000)(4,000)(6,000)(8,000)

2007 2008 2009 2010 20112007 2008 2009 2010 2011 2012 2012

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

-2007 2008 2009 2010 2011 2012

55,000 50,000 45,000 40,00035,00030,00025,00020,00015,00010,000

5,0000

(5,000)(10,000)

2007 2008 2009 2010 2011 2012

Q4 2013 and FY 2013 Outlook

│ 46

Q4 2013 FY 2013

Revenue $110.5M to $111.5M $410M to $411M

Non-GAAP EPS $0.07 $0.25

Operating Cash Flow $13M to $14M $57M to $58M

Recent Press Highlights• Australian Retailers and Distributors Fuel Business Growth with NetSuite Cloud

• NetSuite SuiteCommerce Recognized as a Strong Performer in B2B Commerce Suites Report by Leading Analyst Firm

• SOI Group Plots New Course for Business with NetSuite Cloud

• NetSuite Guides Lonely Planet to the Cloud

• NetSuite Transports Toll's Asian Operations to the Cloud

• Microsoft, SAP, Sage Partners Join NetSuite Solution Provider Program as Demand for Cloud Solutions Continues to Grow

• NetSuite Announces SAP Business ByDesign Sunset Migration Program

• NetSuite to Acquire TribeHR, Creating The First Integrated Cloud ERP and HCMSuite for Small And Mid-Sized Businesses

• Children's Product Industry Grows Up on NetSuite Cloud

• World's Largest Carpet Manufacturer Rolls Out NetSuite OneWorld to Power Global Growth in a Two-Tier ERP Model

• The Philippines' Largest Sugar Producer Drives Efficiency, Sweetens Bottom Line with NetSuite OneWorld

│ 47

Why NetSuite

• Cloud computing: The future of software• 12+ year head-start, not even a close #2• ERP: The “system of record”

– ERP has largest TAM* of any business app category– Suite approach expands TAM to multiple categories

• Execution: Next-phase initiatives succeeding– Verticalization of the suite– Moving up market and going global with OneWorld– Expand your commerce business to an omnichannel

business with NetSuite SuiteCommerce– NetSuite platform enabling partner ecosystem

│ 48*Total Addressable Market