Slide 1: FY12-Q2 Investor Presentation
FY12-Q2 INVESTOR PRESENTATION February 1, 2012 Copyright © Open Text Corporation. All rights reserved.
Slide 2: Disclaimer
Disclaimer Certain statements in this presentation constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws (“forward-looking statements”). Such forward-looking statements involve known and unknown risks, uncertainties and other factors th
Slide 3: Company facts: The World's Leading Independent Provider of Content Management
NASDAQ: OTEX; TSX: OTC Employees: approximately 4,600 Countries: 31 FY11 Revenues: $1,033.3 million HQ: Waterloo, Ontario, Canada The World’s Leading Independent Provider of Content Management
Slide 4: Why OpenText
Why OpenText Largest independent provider of Enterprise Content Management (ECM) Investing in new markets: Business Process Management (BPM) Strategic growth opportunities: geographies, verticals and partners Market share gains over IBM and EMC Global scale: products, people and process Demonstrated
Slide 5: Why Customers Buy. Paths to Growth.
Why Customers Buy. Paths to Growth. Why Customers Buy Paths To Growth Compliance and Core ECM Share Gains Regulations Business Process Unstructured Data Management Information Security SAP and Microsoft Mobility New Verticals Cloud Public Sector Standardization and Emerging Markets Best Practices Co
Slide 6: Key Markets
Key Markets Enterprise Content Management (ECM) ECM is a collection of software applications that help organizations to manage the volume of enterprise content and allow organizations to unite structured and unstructured Information WEM allowing customers to manage content inside and outside the fir
Slide 7: Years of Proven Innovation
of Proven Innovation First Internet Search Engine 1991 Web-based Document 1994 Management 2007- 2007- 2001 present Integrated DM & RM Mobile ECM Apps 2004 ‘Safe’ Social Media BPM ECM Solutions SAP xAPPS, DAM, SPS Copyright © 2012 Open Text Corporation. All rights reserved. 7
Slide 8: Global ECM Market Share
Global ECM Market Share* 25% 24% 22% 20% 20% 18% 17% 18% 15% 16% 15% % Share 15% 13% 13% 12% 10% 6% 6% 6% 6% 5% 4% 4% 5% 5% 4% 2% 3% 0% 0% 2007 2008 2009 2010 IBM Open Text Year EMC Microsoft *Gartner - Market Share Analysis: ECM Software, Autonomy Oracle Worldwide, 2010, Tom Eid, Bianca Francesca G
Slide 9: Diverse Global Customer Base
Diverse Global Customer Base Slide 9 Copyright © 2012 Open Text Corporation. All rights reserved. 9
Slide 10: OpenText Partner Ecosystem
OpenText Partner Ecosystem Applications SI / FSI Transformation Copyright © 2012 Open Text Corporation. All rights reserved. 10
Slide 11: FY12 - Q2 Business Highlights
FY12 - Q2 Business Highlights Mark J. Barrenechea appointed President and CEO of OpenText effective January 2, 2012; John Shackleton retires Americas contributed 53% of total revenue, while EMEA contributed 40% and Asia Pacific 7% License was approximately 27.9% of revenue, customer support contribu
Slide 12: Summary of Results
Summary of Results % Change % Change Q2 FY12 Q1 FY12 Q2 FY11 (Q/Q) (Y/Y) Revenue (million) $321.5 $288.0 $267.5 11.6% 20.2% GAAP gross margin 67.1% 64.8% 68.4% 230 bps (130) bps GAAP operating 17.2% 9.4% 19.7% 780 bps (250) bps income margin GAAP EPS $0.81 $0.60 $0.64 35.0% 26.6% Non-GAAP gross 73.8
Slide 13: Summary of Revenue Results
Summary of Revenue Results % Change % Change In millions Q2 FY12 Q1 FY12 Q2 FY11 (Q/Q) (Y/Y) License $89.7 $65.0 $79.2 38.0% 13.3% Customer 165.4 162.0 136.7 2.1% 21.0% support Service and 66.4 61.0 51.6 8.9% 28.7% other Total $321.5 $288.0 $267.5 11.6% 20.2% Slide 13 Copyright © 2012 Open Text Corp
Slide 14: FY12 - Q2 Financial Highlights
FY12 - Q2 Financial Highlights Total revenue for the period was $321.5 million, up 20.2% Y/Y License revenue was $89.7 million, up 13.3% Y/Y GAAP–based EPS was $0.81 compared to $0.64 Y/Y Non-GAAP-based EPS was $1.39 compared to $1.22 Y/Y* GAAP-based operating margin was 17.2% Non-GAAP-based operati
Slide 15: FY12 - Q2 Financial Stats
FY12 - Q2 Financial Stats Average deal size: $268,000 Deals over $1 million: 7 (+1 Y/Y) Deals over $500K: 22 (+9 Y/Y) License revenue from new accounts: 50% SAP contributed over 10% of license sales Total employees: approximately 4600 Quota carrying sales reps: approximately 436 Maintenance renewal
Slide 16: FY12 - Q2 Revenue Breakdown
FY12 - Q2 Revenue Breakdown Global Revenue by Geography Global Revenue Mix 7% 21% 28% 40% 53% 51% Americas EMEA Asia Pac License Customer Support Service * License Revenue by Industry *Includes just under 1% of hardware revenue 4%4%1% Services 19% Financial 10% Technology Basic Materials 11% Public
Slide 17: Why OpenText Will Lead the Market
Why OpenText Will Lead the Market 1. ECM is far from mature 2. OpenText is best positioned to continue to gain market share over competitors and to expand its relationship with Microsoft/SharePoint 3. Surrounding core ECM with processes - namely BPM – driven by two strategic acquisitions in this spa
Slide 18: Previously Announced Revenue Mix & Margin Internal Target Model
Previously Announced Revenue Mix & Margin Internal Target Model* Revenue Type Fiscal 2012 Target Three months Six months ended Model ended Dec 31, 2011 Dec 31, 2011 (Actual) (Actual) Product License 25-30% 27.9% 25.4% Product Maintenance 52-57% 51.5% 53.7% Professional Services 18-23% 20.6% 20.9% No
Slide 19: Thank You
Thank You Copyright © 2012 Open Text Corporation. All rights reserved. 19
Slide 20: Reconciliation of Selected Non-GAAP Measures – Q2 FY12
Reconciliation of Selected Non-GAAP Measures – Q2 FY12 (in ‘000s USD) Three months ended December 31, 2011 GAAP Adjustment FN Non- GAAP s Cost of Revenues: Customer support $ 28,468 $ (34) 1 $ 28,434 Service and other 50,604 (106) 1 50,498 Amortization of acquired technology-based intangibles 21,253
Slide 21: Reconciliation of Selected Non-GAAP Measures – Q2 FY12 Footnotes
Reconciliation of Selected Non-GAAP Measures – Q2 FY12 Footnotes 1 Adjustment relates to the exclusion of share based compensation expense from our non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results 2 Adjustment relates to the exclusion of a
Slide 22: Reconciliation of Selected Non-GAAP Measures – Q2 FY11
Reconciliation of Selected Non-GAAP Measures – Q2 FY11 (in ‘000s USD) Three months ended December 31, 2010 GAAP Adjustment FN Non- GAAP s Cost of Revenues: Customer support $ 21,542 $ (9) 1 $ 21,533 Service and other 41,158 (172) 1 40,986 Amortization of acquired technology-based intangibles 16,420
Slide 23: Reconciliation of Selected Non-GAAP Measures – Q2 FY11 Footnotes
Reconciliation of Selected Non-GAAP Measures – Q2 FY11 Footnotes 1 Adjustment relates to the exclusion of share based compensation expense from our non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results 2 Adjustment relates to the exclusion of a