Open Text Corporation · TSX:OTEX
Open Text — Nasdaq Investor Conference 2019
24 slides from Open Text's conference presentation, Dec 4, 2019
Slide 1: Nasdaq Investor Conference Presentation
Nasdaq Investor Conference Presentation NASDAQ: OTEX | TSX: OTEX December 4, 2019
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation, including statements about the focus of Open Text Corporation (“OpenText” or “the Company”) in our fiscal year ending June 30, 2020 (Fiscal 2020) on growth, anticipated benefits of our partnerships and next generation product lines, the
Slide 3: Madhu Ranganathan, OpenText EVP, CFO
Madhu Ranganathan OpenText EVP, CFO OpenText Confidential. ©2019 All Rights Reserved. 3
Slide 4: About OpenText and Our Value Creation Play Book
About OpenText and Our Value Creation Play Book The Enterprise Information Management Leader About OpenText Value Creation Play Book • Leader in Enterprise Information Management Recurring Revenue INNOVATION • Marquee eco-system(1): 74,000 customers, 60 million identities, 40 million end-points, 2 m
Slide 5: Our Strategy
Our Strategy Be The Continue to Help Deliver the best Relentless Leading hire, develop companies Hybrid Cloud focus on Platform for and retain the unlock their and operational Enterprise best, most Information Customer excellence & Information diverse & Advantage Experiences efficiency Management in
Slide 6: OpenText Runs at the Center of the Enterprise
OpenText Runs at the Center of the Enterprise Supply Chain Trading Partners ERP Customers Business Eco HR Systems Systems Suppliers CRM Productivity Vendors 20 of 25 top supply chains EIM is “enterprise class,” meaning it can scale big or small. Its scope is “information,” meaning all forms of data,
Slide 7: OpenText: Leader in Content Services
OpenText: Leader in Content Services #1 in Content Services (Platforms) All content is stored, machine readable, tagged and up-to-date CHALLENGERS LEADERS LEADERS OpenText OpenText Newgen Software Microsoft Hyland Oracle IBM Microsoft IBM SER Hyland Group Alfresco Alfresco M-Files Nuxeo Software Las
Slide 8: OpenText: Leader in Business Networks
OpenText: Leader in Business Networks #1 in Business Networks Platform for Global Commerce and Business to Business Integration Customers OpenText LEADERS Infor GT Nexus SPS Commerce E2open Bamboo Rose TrueCommerce Vecco One Network Trading Suppliers MAJOR PLAYERS Partners CONTENDERS PARTICIPANTS De
Slide 9: The Mission Critical Nature of OpenText EIM
The Mission Critical Nature of OpenText EIM e-Invoicing Digital Supply Chain Content & Collaboration Predictive Maintenance Government of Canada Communications & Compliance Digital Citizen Analytics / ML Connected Cars OpenText Confidential. ©2019 All Rights Reserved. 9
Slide 10: Pursuing a Large and Growing Addressable Market
Pursuing a Large and Growing Addressable Market EIM $100B Total Addressable Market(1): Our Playbook within the G10K Market Area OpenText Key Product Market Size Customer Value Approach 5 Key Vectors Families Content Suite, Documentum, ECM, Business Collaboration, File $30B Supporting new ways to wor
Slide 11: A Durable Business Driven by the OpenText Business System
A Durable Business Driven by the OpenText Business System Annual Recurring A-EBITDA & Margin(1),(2) Operating Cash Flows(2) Revenue (ARR) (US$ M) (US$ M) (US$ M) $2,156 $1,100 $876 100% 104% 110% $1,080 $538 $417 38.4% 33.1% FY'14 FY'19 FY'14 FY'19 FY'14 FY'19 Renewal Rates: A-EBITDA Margin(1) Stron
Slide 12: The G10K: The Strategic Theater for Enterprise Software and Clouds
The G10K: The Strategic Theater for Enterprise Software and Clouds • World’s largest enterprises Central Europe, and governments(1)(2) North Russia, ME 505 accts America Europe (5%) • Large and global firms 3,413 accts 2,322 accts China Japan benefiting from digital (34%) (23%) 948 1,206 transformat
Slide 13: Total Growth Strategy: Grow The OpenText Cloud
Total Growth Strategy: Grow The OpenText Cloud OpenText Cloud: The Opportunity: • Cloud First approach • < 20% of install base penetrated • Platform for innovation • Applications for new and existing • Business Collaboration & eSign customers • Business Network and App-to-App • Migrate and modernize
Slide 14: Total Growth Strategy: FY'20
Total Growth Strategy: FY’20 Total Revenue Growth FY’20 Business Profile (US$ M) License Constant $ year-over-year $2,869 12% Cloud High-single digit growth CAGR Customer Support Constant to low-single digit growth $1,625 Constant $ year-over-year Professional Services Optimized for margins M&A Addi
Slide 15: The OpenText Business System Starts with Total Growth
The OpenText Business System Starts with Total Growth • High Annual Recurring Revenues (ARR), 75% of total revenues Retain • Increased customer intimacy and value creation • 90%+ renewal rates(1) • Accelerated innovation with $2B in R&D over Enterprise the next 5 years Grow • Scale our leadership po
Slide 16: Building on OpenText's History of Innovation
Building on OpenText’s History of Innovation $4.8bn capital deployed since FY’14 Content Management 18.7% ROIC in FY ’19(2) Enterprise Content Division 1991 HP CEM & CCM Software(1) Founded out of 1996 University Joined OpenText IPO on of Waterloo TSX60 NASDAQ 2012 2014 2015 2016 2017 2018 2019 Busi
Slide 17: Carbonite Transaction Overview
Carbonite Transaction Overview • On November 11, 2019, OpenText signed a definitive agreement to acquire all of the outstanding shares of Carbonite for $23.00 per share Announcement • Carbonite has over 300,000 SMB customers, 14,000 MSPs, 7 million prosumers, and 1,500+ employees • Purchase price of
Slide 18: Carbonite at a Glance: A Leader in Cyber Resiliency
Carbonite at a Glance: A Leader in Cyber Resiliency A vision to protect 1 million small and medium businesses by 2023 by providing the first fully integrated cyber resiliency solution via a worldwide network of MSPs and channel partners. $405m 90% 29% petabytes 1,500 300k TTM Revenue(1) Recurring re
Slide 19: Continued Execution of OpenText's Strategic Vision
Continued Execution of OpenText’s Strategic Vision ✓ Carbonite is a continuation of our Total Growth Strategy, both through acquisitions and organic growth ✓ We are leading the market as a Cloud Consolidator – Carbonite represents OpenText’s 9th cloud acquisition (EasyLink, GXS, ANX, Covisint, Recom
Slide 20: FY'22 Long-Term Aspirations & Roadmap
FY’22 Long-Term Aspirations & Roadmap 38% to 40% Adj. EBITDA However, we will remain disciplined while we A-EBITDA margin aspiration of 38% invest:We will remain disciplined, while we invest to 40% is an ideal zone for OpenText We are ranked in the upper quartile performance among peers(1) A-EBITDA
Slide 21: FY'22 Long-Term Aspirations & Roadmap
FY’22 Long-Term Aspirations & Roadmap OCF Target of $1B to $1.1B in FY’22 However, we will remain disciplined while we invest: • Driven by higher profitability, productivity enhancements • Use of AI in collections, higher leverage in procurement and vendor management Operating Cash Flows (US$ M) OCF
Slide 22: Appendix
Appendix OpenText Confidential. ©2019 All Rights Reserved. 22
Slide 23: The OpenText Business System
The OpenText Business System Our Competitive Advantage: It is who we are and how we work Total Growth Integration Total Customer-Driven Innovation Growth Return on Invested Capital Systems, Tools, Methods (ROIC) Strategic Acquisitions Operational Excellence Diligence Best Teams Win Dividend, Capital
Slide 24: Thank you
Thank you www.opentext.com OpenText Confidential. ©2019 All Rights Reserved. 24