Slide 1: Investor Presentation
Investor Presentation October 2010 Slide 1 Copyright © 2010 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: Who is Open Text?
Who is Open Text? •World's largest independent provider of Enterprise Content Management (ECM) software •Key partnerships with SAP, MSFT and ORCL •Focused on profitability Slide 3 Copyright © 2010 Open Text Corporation. All rights reserved.
Slide 4: What is Enterprise Content Management?
What is Enterprise Content Management? ECM describes a collection of software applications that help organizations to manage electronic content Slide 4 Copyright © 2010 Open Text Corporation. All rights reserved.
Slide 5: What is ECM and Why is it Needed?
What is ECM and Why is it Needed? ECM manages the entire lifecycle of unstructured data (e.g. Invoices, email, documents, spreadsheets, CAD, multimedia etc.) ECM solutions help corporations organize, control and access this vital business content ECM Market is driven by customers’ needs for regulato
Slide 6: ECM Components
ECM Components CONTENTS Document Management Email Management Records Management eDiscovery Digital Asset Management Contract Management Social Media Web Content Management Business Process Management Archiving Enterprise Portals etc… . Slide 6 Copyright © 2010 Open Text Corporation. All rights reser
Slide 7: Enterprise Content
Enterprise Content Human Resources Accounting Marketing Legal Call Center Personnel Accounts Corporate Contract Case Management Payable Web Site Management Management Slide 7 Copyright © 2010 Open Text Corporation. All rights reserved.
Slide 8: The Open Text ECM Suite
The Open Text ECM Suite Slide 8 Copyright © 2010 Open Text Corporation. All rights reserved.
Slide 9: Open Text Product Portfolio
Open Text Product Portfolio Content Non-ECM Open Text ECM Suite Management Products ECM Suite ECM Suite ECM Suite for for for eDOCS Connectivity Web Site Horizontal Applications Vertical Applications Management Fax HW Contracts and Case Management, Energy, Life Sciences, Accounts Payable, eDiscovery
Slide 10: Global ECM Market Share
Global ECM Market Share +5.5%↑ -3.9%↓ -0.3%↓ Market Share: Content Management Software, Worldwide, 2009, Tom Eid and Bianca Granetto 13 April 2010 Gartner Inc. 10 Copyright © 2010 Open Text Corporation. All rights reserved.
Slide 11: Mobility and Social Media for the Enterprise
Mobility and Social Media for the Enterprise Social Media Mobility Open Text ECM Suite Email GroupWare Filers Web Sites ERP ERP Basic ECM Other ECM Copyright © 2010 Open Text Corporation. All rights reserved.
Slide 12: G20 Powered by Open Text
G20 Powered by Open Text Secure, Hosted, and Mobile Collaboration Site for Multilateral Governmental Collaboration 12 Copyright © 2010 Open Text Corporation. All rights reserved.
Slide 13: Ecosystem Strategy
Ecosystem Strategy 13 Copyright © 2010 Open Text Corporation. All rights reserved.
Slide 14: Diverse Customer Base
Diverse Customer Base Government Energy Pharmaceutical Financial Telecoms Manufacturing Legal AEC/Engineering Automotive Insurance Slide 14 Copyright © 2010 Open Text Corporation. All rights reserved.
Slide 15: FY2011 Q1 Results
FY2011 Q1 Results Total revenue $217.4 million, up 3% (1Q11 vs.1Q10) License revenue $42.6 million, down 10% (1Q11 vs.1Q10) Adjusted EPS $0.86, up 48% (1Q11 vs.1Q10)* Pre-tax adjusted operating margin 28.6%, up from 22.7% (1Q11 vs.1Q10)** Operating cash flow $48.9 million Cash and cash equivalents:
Slide 16: FY2010 Global Revenue Mix
FY2010 Global Revenue Mix 41% 52% 7% North America – 52% Europe – 41% Asia Pac/Other – 7% Slide 16 Copyright © 2010 Open Text Corporation. All rights reserved.
Slide 17: Revenue Mix & Margin Target Model
Revenue Mix & Margin Target Model Revenue Type Product License 25-30% Product Maintenance 52-57% Professional Services 18-23% Overall Gross Margin 73-75% Development ________ 14-16% Sales & Marketing 21-23% General & Admin 8-10% Depreciation 2% Pre-tax Adj. Ops Margin 25-30% *before interest expense
Slide 18: Thank You
Thank You Slide 18 Copyright © Open Text Corporation. All rights reserved.
Slide 19: Reconciliation of Adjusted Operating Margin to GAAP Net Income
Reconciliation of Adjusted Operating Margin to GAAP Net Income* (in millions USD) 1Q10 1Q11 Non GAAP adjusted operating margin (22.7% and 28.6% $ 48.0 $ 62.1 respectively) Less: Amortization 23.1 24.2 Share-based compensation expense 1.5** 2.6 Special charges 18.6 3.2 Other income, net (3.4) (2.5) I
Slide 20: Reconciliation of GAAP based EPS to Non GAAP based EPS
Reconciliation of GAAP based EPS to Non GAAP based EPS (on a diluted basis)* 1Q10 1Q11 Non GAAP-based adjusted EPS $ 0.58 $ 0.86 Less: Amortization 0.41 0.42 Share-based compensation expense 0.03 0.04 Special charges 0.33 0.06 Other income, net (0.06) (0.04) GAAP based provision for income 0.06 0.15