Contract  Management  Strategic  Sourcing  Configura1on  

Selectica Business Opportunity

Blaine Mathieu Chief Executive Officer

bmathieu@selectica.com

Forward Looking Statements

Certain statements in this release and elsewhere by Selectica are forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements about business outlook, assessment of market conditions, anticipated financial and operating results, strategies, future plans, contingencies and contemplated transactions of the Company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of Company operations, or the performance or achievements of the Company or industry results, to differ materially from those expressed, or implied by the forward-looking statements. In addition to any such risks, uncertainties and other factors discussed elsewhere herein, risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied for the forward-looking statements include, but are not limited to the on-going global recession; fluctuations in demand for Selectica’s products and services; government policies and regulations, including, but not limited to those affecting the Company’s industry; and risks related to the Company’s past stock granting policies and related restatement of financial statements. Selectica undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Additional risk factors concerning the Company can be found in the Company’s most recent Form 10-K, filed by the Company with the Securities and Exchange Commission.

HEAD OFFICE: San Mateo, California

PEOPLE: 235 Selecticans

CLIENTS: 240+ large enterprises

Company Snapshot

SHARE PRICE: ~$6

SHARES OUTSTANDING: 7.7 Million

Solutions (pre-Iasta)

Configuration Contract Management 1 2

Contract Management

•  Contract Lifecycle Management

•  Contract Discovery and Analytics (NEW)

•  Best Practices Consulting •  Implementation Services

•  Optimize & configure to precisely fit customer requirements

•  Adapt & integrate to any system

•  Richest functionality on the market

SO

LUTI

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Our Solutions

Our Differentiators

1 | Contract Management

SO

LUTI

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S

Configuration

•  Configuration Platform •  Model Builder •  Best Practices Consulting •  Implementation Services

•  Ultimate in configurability, extensibility

•  Constraints-based (not rules) engine handles most complex challenges

•  Battle-tested – $Billions of transactions

Our Solutions

Our Differentiators

SO

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2| Configuration

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Selectica Historical Overview

9

   •  Lack of support & service •  Single major client churn •  Business needed refocus

on service

•  Began transition to SaaS •  New product/price model •  Priority on cust. acquisition

•  Management overhaul •  Refocus on customers •  Raised additional capital

Iasta  

Recognized SaaS provider §  15 years of delivering technology to global companies and suppliers §  Leader in the Strategic Sourcing - Gartner Magic Quadrant 2013

A Global Company

§  Sales & Delivery Offices ü  Global HQ: Indianapolis, USA ü  Europe HQ: London, UK

§  Experienced / global partner channel

Leading with proven products & services §  Spend Analysis / Procurement Intelligence §  Strategic Sourcing (eRFx, Auctions, Optimization) §  Contract Management / Contract Authoring §  Supplier Information & Performance Management §  Iasta Advisory Services / Training

Solution 3 | Iasta

Gartner Magic Quadrant Leader

Selectica fills gaps

Growth Drivers

Channel Expansion Solution Expansion 1 2

Solution Expansion

Sources: Forrester, Gartner, and IACCM (Global Contract Mgmt. Association)

$500 to $750 Million

SELL-SIDE

BUY-SIDE

CLM $2.3 Billion

1 | G

RO

WTH

DR

IVE

R

Contract Compliance

Management

C-Discovery File/Contract Analysis

Chargeback & Rebate

Management

Contract Lifecycle

Management

Proposal Generation Sales Contract

Management E-Signatures

Legal Document

Management

Enterprise Legal

Management

Recurring Revenue

Management

Configure Price Quote Spend

Analysis

Sourcing Optimization

Legal Governance, Risk and

Compliance (GRC)

Strategic Sourcing/ Procurement

Legal & Regulatory Information

Governance

Sales Content Management

Deal Management

Source to Settle Solutions

The Contract

Sales / Marketing

Supplier Information

Management

Supplier Performance Management

With Iasta

GR

OW

TH D

RIV

ER

1 |

Contract Compliance

Management

C-Discovery File/Contract Analysis

Chargeback & Rebate

Management

Contract Lifecycle

Management

Proposal Generation Sales Contract

Management E-Signatures

Legal Document

Management

Enterprise Legal

Management

Recurring Revenue

Management

Configure Price Quote Spend

Analysis

Sourcing Optimization

Legal Governance, Risk and

Compliance (GRC)

Strategic Sourcing/ Procurement

Legal & Regulatory Information

Governance

Sales Content Management

Deal Management

Source to Settle Solutions

The Contract

Sales / Marketing

Supplier Information

Management

Supplier Performance Management

Sources: Forrester, Gartner, and IACCM (Global Contract Mgmt. Association)

$5 Billion TAM

2| Channel Expansion

New Client Channel

•  Build sales and marketing “machine”

•  International expansion

GR

OW

TH D

RIV

ER

Global Team Now Including UK HQ

Pune  Development  

San  Mateo  Corp.  Selec1ca  

London  Sales  Office  

Odessa  Development  Carmel,  IN  

Corp.  Iasta  

Costa  Rica  Call  Center  

2| Channel Expansion

Existing Client Growth Channel

New Client Channel

•  Build sales and marketing “machine”

•  International expansion

•  Majority of clients lightly penetrated

•  Penetrate new divisions

•  Seat expansion

•  Up/cross-sell new products and services

GR

OW

TH D

RIV

ER

Blue Chip Customers

Leading companies depend on Selectica

GR

OW

TH D

RIV

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2|

Leading companies also depend on Iasta

Blue Chip Customers

GR

OW

TH D

RIV

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2|

Partner/SI Channel

•  Untapped partner ecosystem

•  Force-multiplier for other growth drivers

Channel Expansion

New Client Channel

•  Build sales and marketing “machine”

•  International expansion

•  Majority of clients lightly penetrated

•  Penetrate new divisions

•  Seat expansion

•  Up/cross-sell new value-added products and services

Existing Client Growth Channel

GR

OW

TH D

RIV

ER

2|

SAIC

Northrop Grumman

NEC

Lockheed Martin

IBM

Xerox Global Services

WNS

Tata Consultancy

West

Wipro

Teleperformance

Infosys

IBM

HP

Fizerv

Hitachi

Fujitsu

Deloitte

Legal Process

Outsourcers (LPOs)

Cognizant

Capita Group Capgemini

Accenture

Systems Integrators (Sis)

Capgemini ADP

Accenture

Wipro

UnitedLex Mindcrest

Integreon

Business Process

Outsourcers (BPOs)

Infosys HCL Genpact Capgemini

Accenture Legal

Contract Compliance

Management

C-Discovery File/Contract Analysis

Chargeback & Rebate

Management

Proposal Generation Sales Contract

Management

Legal Document

Management

Enterprise Legal

Management

Recurring Revenue

Management

Configure Price Quote

Legal Governance, Risk and

Compliance (GRC)

Strategic Sourcing/ Procurement

Legal & Regulatory Information

Governance

Sales Content Management

Deal Management

Sales / Marketing

Procurement Contract

Management

Supplier Information

Management

Analytics

Sourcing P2P

Supplier Performance Management

Optimization

E-Signatures

The  Contract  

Partner Ecosystem

GR

OW

TH D

RIV

ER

2|

Experienced Management Team

Blaine Mathieu President & CEO

Jeff Grosman COO

Todd Spartz CFO

Patrick Stakenas Chief Strategy Officer

Eric Faulkner CIO & Pro Serve

Leo Sigal CTO

Rose Lee SVP Customer Success

Mike Mothersbaugh SVP Sales

Summary Income Statement (Final quarter not including Iasta)

TAKEAWAYS:

•  Recurring and nonrecurring revenues are stabilizing •  Longer-term path to return to historical gross margins •  Revenue growth leverages across stable fixed cost base

Summary Balance Sheet (Final quarter not including Iasta)

TAKEAWAYS: •  Necessary cash to execute against the business model •  Warrants convert @$12.25, ~$8M cash

Cash $12,218 Credit facility $5,613 Accounts Receivable 2,494 Accounts payable 1,496 Prepaid expenses & other current assets

1,009 Accrued liabilities 1,009

Total current assets $15,721 Deferred revenue 4,556 Total current liabilities 12,674

Long-term deferred revenue 433 Other long-term liabilities 26 Total liabilities 13,133

Property & equipment, net 284

Capitalized software 1,280

Other assets 36 Total stockholders’ equity 4,188 Total assets $17,321 Total liabilities & stockholders’ equity $17,321

Summary Pro Forma Income Statement (including Iasta)

TAKEAWAYS:

•  Significantly greater revenue scale •  Greater gross margin contribution

Milestones to Measure SLTC

•  Expansion in recurring revenue

•  Improvement in nonrecurring revenue

•  Recovering gross margins

•  Increasing billings

•  New solutions added to product suite

•  Strategic partner announcements

Reasons to Invest

Overhauled management

team Business realigned/ refocused

Growth through solution

expansion

Attractive valuation

Largely untapped customer base to upsell and further

penetrate

Transition to SaaS almost

complete

$

THANK YOU