Slide 1: Enabling the Global 2000 in e-business
Enabling the Global 2000 in e- e-business September 2000 Quarter Tom Jenkins, CEO Alan Hoverd, CFO Bill Forquer, VP ASP October 2000
Slide 2: Disclaimer
Disclaimer “This presentation may contain forward-looking statements relating to the future performance of b2bScene.com, the deployment of Livelink and myLivelink by customers, and future performance of Open Text Corporation. Forward-looking statements are subject to certain risks and uncertainties,
Slide 3: Overview
Overview " Corporate Overview " Market Opportunity " Customer Examples " Strategy " Key Partnerships " Financial Performance
Slide 4: Corporate Overview
Corporate Overview " Chicago is HQ $US MM Revenue 160 140 " IPO in 1995 120 100 " 35-40% growth 80 60 " $150-155 M 40 20 0 " $0.75-0.80 eps 96 97 98 99 00 01* 1996 1997 1998 1999 2000 200 Fiscal Year *First Call " 1,000 people worldwide " momentum building in ASP program
Slide 5: Strong User Growth
Strong User Growth 1 million new users per year Millions of users 4 3 2 1 0 19 96 1997 1998 1 999 20 00 96 97 98 99 2000 Fiscal Year
Slide 6: Overview
Overview " Corporate Overview " Market Opportunity " Customer Examples " Strategy " Key Partnerships " Financial Performance
Slide 7: e-Commerce vs C-Commerce
e-Commerce ‘vs’ C-Commerce Gartner Group Government predicts that this is Contract RFP the next major collaborate Time to Transaction wave of the internet c-commerce Buy a CD online: catalog e-commerce Value of Transaction
Slide 8: e-Commerce vs C-Commerce
e-Commerce ‘vs’ C-Commerce - Meetings - Proposals Time to Transaction - Plans - Specifications - Discussions Contract is awarded Value of Transaction
Slide 9: A shrinking world
A shrinking world Aerospace Hull Company Manufacturer Maintenance Engine Airlines Manufacturer Component Documentation Supplier Regulators
Slide 10: Email collaboration
email collaboration W word attachment W returned document
Slide 11: Multiple users: email doesn't work in large groups
multiple users Email doesn’t work in large groups
Slide 12: Only a library of documents works in large groups
multiple users Only a library of documents works in large groups
Slide 13: The Bow-Tie Collaboration
The Bow-Tie Collaboration TM Doing the wedge more efficiently provides huge ROI c-commerce is about saving money on transactions Research Documents 10 K filings Transaction Pre-Investment Post-Investment Interactions Buy! Interactions Transaction References & Discussions Q conference calls
Slide 14: Overview
Overview " Corporate Overview " Market Opportunity " Customer Examples " Strategy " Key Partnerships " Financial Performance
Slide 15: Some Livelink Users
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Slide 16: Recent Enterprise Wins
Recent Enterprise Wins 120,000 seats at Nortel 100,000+ seats US Armed Forces 30,000 seats at Saudi Aramco 40,000 seats at Scotland Yard Worldwide standards bodies IDC study 684% ROI
Slide 17: Air Force Business Solutions Exchange
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Slide 18: USAF
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Slide 19: USAF
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Slide 20: USAF
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Slide 21: Overview
Overview " Corporate Overview " Market Opportunity " Customer Examples " Strategy " Key Partnerships " Financial Performance
Slide 22: Evolution of our Strategy
Evolution of our Strategy Trade Applications COLLABORATIVE COMMERCE Collaboration COLLABORATIVE KNOWLEDGE DOCUMENT MANAGEMENT Publish MANAGEMENT Closed Open Department Enterprise Community Community Reach
Slide 23: Strategy
Strategy 2. More $ per users 1. More users
Slide 24: Overview
Overview " Corporate Overview " Market Opportunity " Customer Examples " Strategy " Key Partnerships " Financial Performance
Slide 25: Collaborative-Commerce
Collaborative-Commerce e-commerce Customers Suppliers CRM ERP Corporation SCM C- COMMERCE
Slide 26: The Bow-Tie Collaboration
The Bow-Tie Collaboration TM Research Documents 10 K filings Transaction Pre-Investment Post-Investment Interactions Buy! Interactions Transaction References & Discussions Q conference calls
Slide 27: Collaborative Commerce
Collaborative Commerce SCM CRM Transaction Pre-Transaction Post-Transaction Interactions Buy Interactions Transaction ERP e-Procurement
Slide 28: Recent Partner Examples
Recent Partner Examples " Oracle Portal " Oracle applications " ERP,SCM,CRM link to Livelink for collaboration " Collaboration engine for mysap.com " ERP,SCM " SAP R/3 integration " Bluebird acquisition " ERP,SCM " Version 8 integration
Slide 29: Direct Sales to G2000
Direct Sales to G2000 Market Penetration: 10 million 40% Open Text users 40% Lotus Notes 20% Others (Documentum) 50 million 2000 companies Market Potential users @25,000 users
Slide 30: ASP - New Channel
ASP - New Channel Critical Path eRoom 50 million G2000 Business users Application Service 300 million Providers users Small & Medium (SME) Business
Slide 31: ASP Strategy
ASP Strategy " $5 million in booked business in first quarter of operation " e-marketplace collaboration tools " ROI from efficient supply chain management " same with customer relationships " Transaction meter drives revenue " Leverages shipping product at no cost
Slide 32: Initial ASP Wins
Initial ASP Wins E-Procurement ASP consortium uses Livelink Collaboration Supply Chain Collaboration Aerospace Marketplace Energy Marketplace Customer Relationships Worldwide Standards
Slide 33: Construction Supply Chain: Primavera's PrimeContract.com
Construction Supply Chain Primavera’s PrimeContract.com Integration with i2 Collaborative Commerce
Slide 34: e-STEEL exchange demo
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Slide 35: Large Telco User Base
Large Telco User Base 20 enterprise deploys with more than 1 million users dominant position in Telecommunications
Slide 36: Major Telco ASPs
Major Telco ASPs " Method for telcos to expand services that will push bandwidth " multi-million dollar commits " $50 per month to client " $15 to Open Text as license rental " Install base is millions of small users " KPNQwest " British Telecom
Slide 37: Personalized Access
Private Label Personalized Access Brand Application and Content Integration Personalization ala myYahoo!
Slide 38: Wireless Access
Wireless Access Personalized Wireless Interface - Task List - Alert notification - Approve a document - Authorize a new project participant Access email
Slide 39: ASP Partner Options
ASP Partner Options " Buy a Home: Reseller that Hosts " Rent a Hotel: Horizontal ASP’s Resell Access to Livelink " Rent an Apartment: Vertical ASP’s Embed Livelink for Collaboration " Real Estate Agent: Broadband Provider as a Marketing Partner
Slide 40: Pricing Impact of ASPs
Pricing Impact of ASPs Assumes: “Home” Sale: $100 Sale and 20% Maintenance $US Revenue per Seat “Rent” ASP: $50 per quarter ($17/seat/month) 400 350 300 250 200 150 100 50 0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 First Two Years Breakeven after 3 quarters
Slide 41: Overview
Overview " Corporate Overview " Market Opportunity " Customer Examples " Strategy " Key Partnerships " Financial Performance
Slide 42: 1st Quarter Highlights
1st Quarter Highlights " September 30, 2000 " 14 cents eps (75% growth) " $30.1 m revenue " $4.7 m cash flow " DSO at 70 days " $109 m cash
Slide 43: Global Sales & Support
Global Sales & Support United States 59% 600 people Europe: 36% 300 people Asia : 5% 50 people
Slide 44: Revenue by Type
Revenue by Type Product Related: 75% Services: 25% Services 25% Licence 50% Maintenance 25%
Slide 45: Strong Follow On Revenue
Strong Follow On Revenue New Users 49% Install Base 51%
Slide 46: Revenue & Margin Model
Revenue & Margin Model " Revenue Type • Product License: 50% • Product Maintenance 25% • Professional Services 25% " Overall Gross Margin: 75 % • Development 15% • Sales & Marketing 35% • General & Admin 10% " Operating Income 15% " Other Income 5% " Net Income 20%
Slide 47: Financial Strengths
Financial Strengths " US$109 million in cash ($5.4/share) " No debt " $100 million Working Capital " millions in tax loss carry forwards " private investments in pre-IPOs •communities.com •deja.com •b2bscene.com
Slide 48: Summary
Summary " Core business model strong: •35-40 % growth & 15 % profitability •4 million Livelink users " Additional models for growth: •ASP represents an additional channel for distribution •Acquisition program to augment internal growth
Slide 49: Thank You
OPEN TEXT Thank You OPEN TEXT c OR PO R ATtO N We are the C in C-commerce