Oracle Corporation · NYSE:ORCL

Oracle — Shareholder Meeting (November 2014)

25 slides from Oracle's shareholder meeting presentation, Nov 5, 2014

  1. Slide 1: Annual Stockholder Meeting

    Annual Stockholder Meeting Jeff Henley Oracle Vice Chairman November 5, 2014 Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement "Safe Harbor" Statement: Statements in this presentation relating to Oracle's future plans, expectations, beliefs, intentions and prospects are "forward-looking statements" and are subject to material risks and uncertainties. Many factors could affect our current expectations a

  3. Slide 3: Oracle Strategy

    Oracle Strategy Industry Applications Cloud Applications Vertical Integration Best of Breed Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 3

  4. Slide 4: Leader in Key Segments

    Leader in Key Segments Technology Applications • Application Server • Business Analytics • Database • Enterprise Performance Management • Database on Linux • Lead Management • Database on Unix • Marketing Automation • Data Warehouse • Supply Chain Execution • Embedded Database • Supply Chain Plannin

  5. Slide 5: Company Profile

    Company Profile Scale • $38B revenue in FY14 • #1 in 50 product or industry categories • 400,000 customers in 145+ countries • More than 25,000 partners • 123,000 employees • 15 million developers in Oracle on-line communities Innovation and Investment • 36,000 developers and engineers • 18,000 cust

  6. Slide 6: Fiscal Year 2014 Financial Performance

    Fiscal Year 2014 Financial Performance Year over Year Growth FY14 Software Revenue +5% Hardware Revenue +2% Total Revenue +4% Operating Income +4% Operating Margin 47% Net Income +3% Earnings per Share +8% Free Cash Flow $14B Unless stated otherwise, year-over-year growth rates are non-GAAP and pres

  7. Slide 7: Revenue: FY2014 Geographic Distribution

    Revenue FY2014 Geographic Distribution Asia Pacific 16% of Revenue Americas 53% of Revenue EMEA 31% of Revenue Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 7

  8. Slide 8: Revenue: FY2014 Line of Business Distribution

    Revenue FY2014 Line of Business Distribution Services 10% of Revenue Hardware 14% of Revenue Software 76% of Revenue Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 8

  9. Slide 9: Revenue: FY2014 Line of Business Distribution

    Revenue FY2014 Line of Business Distribution Services 10% of Revenue Hardware 14% of Revenue Cloud 4% of Revenue On-Premise Software 72% of Revenue Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 9

  10. Slide 10: Total Revenue is Growing

    Total Revenue is Growing 4 Year 9% Four-Year Compounded Growth CAGR 40 35 30 25 $ Billion 20 +9% 15 10 5 0 FY10 FY11 FY12 FY13 FY14 Total Revenue Source: Non-GAAP results. GAAP to Non-GAAP reconciliations are available at www.oracle.com/investor. Copyright © 2014, Oracle and/or its affiliates. All r

  11. Slide 11: Software Revenue is Growing

    Software Revenue is Growing 4 Year 9% Four-Year Compounded Growth CAGR 30 25 20 $ Billion 15 +9% 10 5 0 FY10 FY11 FY12 FY13 FY14 Software & Cloud Source: Internal Analysis Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 11

  12. Slide 12: Software Revenue is Growing

    Software Revenue is Growing 4 Year 9% Four-Year Compounded Growth CAGR 30 + 43% 25 20 $ Billion 15 + 8% 10 5 0 FY10 FY11 FY12 FY13 FY14 On-Premise Software Cloud Source: Internal Analysis Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 12

  13. Slide 13: Cloud Revenue is Growing Rapidly

    Cloud Revenue is Growing Rapidly 4 Year 43% Four-Year Compounded Growth CAGR +88% +12% FY10 FY11 FY12 FY13 FY14 IaaS SaaS/PaaS Source: Internal Analysis Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 13

  14. Slide 14: Our Business Model Drives Recurring Revenue

    Our Business Model Drives Recurring Revenue $29.2B $28.0B $26.6B $24.5B $21.0B 68% 65% FY10 FY11 FY12 FY13 FY14 New Software License First Year Support Continuing Support Cloud Source: Non-GAAP results. GAAP to Non-GAAP reconciliations are available at www.oracle.com/investor. “First Year Support” i

  15. Slide 15: Free Cash Flow

    Free Cash Flow 4 Year 14% Four-Year Compounded Growth CAGR 16 14 12 10 $ Billion 8 +14% 6 4 2 0 FY10 FY11 FY12 FY13 FY14 Free Cash Flow Source: GAAP Results Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 15

  16. Slide 16: Capital Allocation

    Capital Allocation ~ 90% of FY13/FY14 Free Cash Flow Returned to Shareholders 14 12 10 $ Billion 8 6 4 2 0 FY10 FY11 FY12 FY13 FY14 Buybacks Dividends Source: GAAP results. Internal Analysis. Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 16

  17. Slide 17: A Very Healthy Balance Sheet

    A Very Healthy Balance Sheet • Return on Equity (TTM) 24% • Return on Assets (TTM) 12% • Cash & Investment (MRQ) $52B • Debt to Equity (MRQ) 1.08x • Net Cash (MRQ) $19B Above figures are based on GAAP results for the four most recent quarters including Q1 FY2015. TTM – Trailing Twelve Months; MRQ –

  18. Slide 18: Comparative Performance

    Comparative Performance Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 18

  19. Slide 19: How Does Oracle Compare to Tech Peers?

    How Does Oracle Compare to Tech Peers? We selected 11 Tech Peers and normalized each to Oracle’s fiscal year and aggregated GAAP results to compare Oracle’s financial performance against the group of our “Tech Peers.” Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 19

  20. Slide 20: How Does Oracle Compare to The Dow?

    How Does Oracle Compare to The Dow? We included all Dow Jones 30 companies except financial services companies of American Express, Goldman Sachs, JP Morgan, Traveler’s Insurance and Visa. GAAP financial results for each company were normalized to Oracle’s fiscal year and aggregated to compare Oracl

  21. Slide 21: Revenue

    Revenue 400 300 200 100 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Oracle Tech Peers Dow Source: FactSet. FCF results were indexed to 100 for FY04 (or closest 4 quarter period); subsequent periods were indexed to FY04 to show trend on a common basis. Copyright © 2014, Oracle and/or its

  22. Slide 22: Operating Income

    Operating Income 400 300 200 100 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Oracle Tech Peers Dow Source: FactSet. FCF results were indexed to 100 for FY04 (or closest 4 quarter period); subsequent periods were indexed to FY04 to show trend on a common basis Copyright © 2014, Oracle an

  23. Slide 23: Free Cash Flow

    Free Cash Flow 500 400 300 200 100 0 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 Oracle Tech Peers Dow Source: FactSet. FCF results were indexed to 100 for FY04 (or closest 4 quarter period); subsequent periods were indexed to FY04 to show trend on a common basis. Excludes one-time specia

  24. Slide 24: Oracle Stock Has Performed Well Compared to Broader Indices – 10 Year

    Oracle Stock Has Performed Well Compared to Broader Indices – 10 Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Oracle S&P 500 Nasdaq Dow Jones Source: FactSet Research. Prices for the last 10 years were indexed (October 2004 – September 2014) Copyright © 2014, Oracle and/or its affiliates.

  25. Slide 25: Copyright © 2014, Oracle and/or its affiliates. All rights reserved.

    Copyright © 2014, Oracle and/or its affiliates. All rights reserved. 25

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