Open Text Corporation · TSX:OTEX

Open Text — Investor Day (September 2012)

13 slides from Open Text's investor day presentation, Sep 6, 2012

  1. Slide 1: Investor Briefing

    Investor Briefing New York City, Palace Hotel Paul McFeeters OpenText CFO and CAO September 6th, 2012 Copyright © OpenText Corporation. All rights reserved.

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement 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 othe

  3. Slide 3: FY13 External Target Model

    FY13 External Target Model* Fiscal 2012 Target Fiscal 2013 Target Revenue Type Fiscal 2012 Actual Model Model As a % of revenue Product License 24.3% 25-30% 20 - 25% Cloud Services 0.6% 0% 11 - 14% Product Maintenance 53.8% 52-57% 44 - 48% Professional Services 21.3% 18-23% 17 - 22% Non-GAAP Gross M

  4. Slide 4: License Revenue Seasonality

    License Revenue Seasonality (guideline – not guidance) Q4 to Q1 – down 10-20% Q1 to Q2 – up 20-30% Q2 to Q3 – down 5-10% Q3 to Q4 – up 20-30% 4

  5. Slide 5: Support Revenue – historical metrics

    Support Revenue – historical metrics Renewal rate 91 – 93% inclusive of Price increase First year maintenance mandatory 20% Deferred customer support revenue June 30, 2012 $287m, $274m recognizable in fiscal 2013 5

  6. Slide 6: Sample Support Revenue Calculation

    Sample Support Revenue Calculation – using FY ‘11 as a base for FY ‘12 - example Calculation Revenue Q4 F11 support revenue $ 151 Annualized revenue (4 x Q4) (a) 604 Current deferred revenue (b) $ 255 6/30/11 Support to be renewed (a) - (b) = (c) 349 Renewal rate (d) 92% Renewed support (c) x (d) =

  7. Slide 7: Tax rate – Cash taxes

    Tax rate – Cash taxes 2011 Effective Rate on Adjusted Earnings – 14% Cash Taxes on Operations – 5%-7% 2012 Effective Rate on Adjusted Earnings – 14% Cash Taxes on Operations – 5%-7% 2013 Effective Rate on Adjusted Earnings – 14% Cash Taxes on Operations – 5%-7% 7

  8. Slide 8: Taxes on Business Reorganization and Acquisition Transfers of IP

    Taxes on Business Reorganization and Acquisition Transfers of IP Open Text also expects to pay cash taxes based on continuing to align ownership and management of our Intellectual Property in Luxembourg. The amount depends on the fair value and tax attributes (cost basis)of the acquired assets and t

  9. Slide 9: Debt Capacity

    Debt Capacity Loan Leverage Ratio Covenant Pro-forma EBITDA $115.7 F12 F11 F10 $361 $301 $248 $87.5 $88.6 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 $83.0 $74.1 $72.3 $74.6 $73.6 $66.5 1.8 1.8 1.7 1.2 1.2 1.1 1.0 1.0 1.1 TTM Pro-Forma EBITDA Loan Leverage Ratio Headroom Loan Interest Coverage EBITDA Headro

  10. Slide 10: Debt Capacity

    Debt Capacity F12 EBITDA $361m Loan Covenants - 3 X Debt/EBITDA & 3 X Interest June 2012 cash balance $560m, EasyLink cash cost $315m Debt capacity: TTM EBITDA $ 361 Loan covenant 3.0 1,083 Current debt 608 Additional capacity $ 475 10

  11. Slide 11: History of Growing Non-GAAP EPS and Adjusted Operating Cash Flow

    History of Growing Non-GAAP EPS and Adjusted Operating Cash Flow** Non-GAAP EPS $5.00 $4.00 6 Year CAGR 28.7%* $3.00 $2.00 $1.00 $- FY07 FY08 FY09 FY10 FY11 FY12 $69M $108M $134M $179M $238M $270M $1.46 $2.03 $2.51 $3.12 $4.07 $4.60 Operating Cash Flow ** 350 $6.00 300 250 6 Year CAGR 29.5% * $4.00

  12. Slide 12: OpenText – Key Financial Metrics

    OpenText – Key Financial Metrics Predictability of Results Strong Earnings & Cash Flow Acquisition capacity 12

  13. Slide 13: Unleashing the Power of Information

    Unleashing the Power of Information

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