Slide 1: Collaboration Software: Productivity Tools for the Global 2000
Collaboration Software Productivity Tools for the Global 2000 Tom Jenkins, CEO Alan Hoverd, CFO 4th Quarter and FY 2002 Aug 1, 2002
Slide 2: Disclaimer
Disclaimer “This presentation may contain forward-looking statements relating to the future performance of Open Text, 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, an
Slide 3: Corporate Presentation
Corporate Presentation 4 The Company 4 The Problem 4 The Solution 4 The Strategy 4 The Results 4 The Summary
Slide 4: The Company
Corporate Presentation 4 The Company 4 The Problem 4 The Solution 4 The Strategy 4 The Results 4 The Summary
Slide 5: Corporate Overview
Corporate Overview 4 Collaboration 160 $US MM Revenue Software 140 120 4 OTEX 100 80 4 IPO in 1996 60 40 4 $152M 20 0 1996 1997 1998 1999 2000 2001 2002 4 $1.02 EPS 1996 97 98 99 00 01 02 Year 4 1,000 people worldwide 4 Growth despite soft economy
Slide 6: Strong Internet History
Strong Internet History 4 Put Oxford Dictionary online in 91 4 1st Internet search engine in 94 4 1st Yahoo search engine in 95 http://www.opentext.com/investor/ 4 Founded About.com in 96 4 1st KM web product in 97 4 1st Netscape KM engine in 97 4 1st Integrated CKM engine in 01
Slide 7: Global 2000 Customers
Global 2000 Customers United States 60% 650 people Europe: 35% 300 people Asia: 5% 50 people World Operations HQ in Chicago 1,000 staff worldwide
Slide 8: The Problem
Corporate Presentation 4 The Company 4 The Problem 4 The Solution 4 The Strategy 4 The Results 4 The Summary
Slide 9: Collaboration and Knowledge Management
The Marketplace Collaboration and Knowledge Management …… To drive Productivity solutions for Global 2000
Slide 10: Impact of Collaboration
Impact of Collaboration Make better decisions faster! A Group Collaboration Quality ROI Savings One Person A group Time
Slide 11: 3 Major Trends affecting KM
3 Major Trends affecting KM 4 1. Largest lay off of knowledge workers in history in past year • Big wake up call for corporate memory 4 2. Boomers are coming up on retirement • Big loss of corporate memory 4 3. Knowledge workers are more dispersed • Technology has diffused corporate memory locations
Slide 12: The problem with KM
The problem with KM Input is Knowledge Repository is not useful a barrier: without information being fed organically most is lost Knowledge Information Repository
Slide 13: The Solution
Corporate Presentation 4 The Company 4 The Problem 4 The Solution 4 The Strategy 4 The Results 4 The Summary
Slide 14: Collaboration & KM
Collaboration & KM Knowledge Repository is fed as a by-product of collaborative work Collaborative Work MeetingZone Knowledge Environment Repository Knowledge Repository is mined to make collaborative working more effective
Slide 15: Easy to get into meeting
Easy to get into meeting E-mail Invitation – make it easy to use All invitees receive e-mail notification. In addition to the information that participants and guests receive, hosts also receive the Host ID. Invitees can simply click this link to go to the meeting on the server.
Slide 16: Meeting Whiteboard
Meeting Whiteboard Draw and Capture Chat at the same time
Slide 17: Eye brows online
Eye brows online Attendees can exchange private instant messages. No one other than the two attendees can see their conversation.
Slide 18: Archive Meeting Sessions
Archive Meeting Sessions Archive meeting sessions in a project
Slide 19: Vertical Solutions
Vertical Solutions ROI drives the purchase decision! Pharmaceutical Computer, Electronics, & Information Telecommunications Heavy Equipment Food & Beverage Chemicals Energy & Utilities Media Aerospace Construction Financial Services & Insurance
Slide 20: The Strategy
Corporate Presentation 4 The Company 4 The Problem 4 The Solution 4 The Strategy 4 The Results 4 The Summary
Slide 21: Strategy
Strategy 4 Operate the company efficiently 4 Be ready to integrate smaller players 4 Don’t build bad habits 4 Don’t spend $3 in marketing to generate $1 of revenue! 4 Wait to spend $.40 to generate $1 of revenue 4 The growth will fall to the bottom line 4 In the meantime, keep growing profits with m
Slide 22: Investing in the future
Investing in the future 4 Profit Focus but actively investing 4 Not tactical investing (eg. Adverts) 4 Strategic investing (eg. Research) 4 We are doing strategic investing 4 Investing 16% of sales on research 4 $40 million in past two years 4 Developing users & solutions at LLUP
Slide 23: Innovation in the last 12 months
Innovation in the last 12 months 4 Livelink KM – knowledge management 4 MeetingZone – web meeting 4 Livelink RM – records management 4 Virtual Teams – meeting methods 4 Livelink Unite – enterprise integration 4 Livelink Atlas – extended search 4 Livelink SAP – extended ERP 4 Livelink eSign –approval
Slide 24: Open Text is Market Leader
Open Text is Mkt Leader Open Text has larger global market share than closest rivals combined* IBM 14% Others 39% Open Text 47% *Source: IDC June 2001 report
Slide 25: Market Leadership Recognition
Mkt Leadership Recognition 4 May 2002 Gartner Report on Collaboration •top right quadrant for best technical vision and ability to execute 4 Jun 2002 Giga Report on Collaboration •Open Text the only vendor out of 10 profiles to have all features required
Slide 26: Applications & Solutions
Applications & Solutions 4 Financial Services 4 Pharmaceutical 4 Government 4 Construction 4 Program Management 4 Oil & Gas 4 Media
Slide 27: Livelink in Pharmaceuticals
Livelink in Pharmaceuticals XML BASED ELECTRONIC SUBMISSIONS MANAGING CLINICAL FORMS & DATA ACCESS DATA IN LEGACY SYSTEMS COMPLIANCE to FDA 21 CFR Part 11
Slide 28: Livelink in AEC
Livelink in AEC MULTIPLE WORKSPACES DRAWING VIEWING AND REDLINING FORM DRIVEN TASKS & WORKFLOW PROJECT CALENDARS & DIARIES
Slide 29: Livelink for Program Management
Livelink for Program Management 4 Stage/Gate Process Support 4 Project Team Collaboration 4 Decision Support 4 Process Oriented GUI
Slide 30: The Results
Corporate Presentation 4 The Company 4 The Problem 4 The Solution 4 The Strategy 4 The Results 4 The Summary
Slide 31: Q4 Jun 2002 Quarter
Q4 Jun 2002 Quarter 4 Record revenue and profits 4 $41.2 M revenue and $7.3 M profits 4 28% license revenue growth Q/Q 4 6 deals over $1 million 4 25% profit growth Q/Q 4 EPS 0.35 (xGW) 4 Beat street estimate by 4 cents or 13% 4 9 th quarter of profit in a row
Slide 32: Q4 Jun 2002 Quarter
Q4 Jun 2002 Quarter 4 Strong operations cash flow of $8.5M 4 12th quarter of operations cash flow 4 Low DSOs of 72 days 4 Guidance of $1.18 eps unchanged for FY03 4 Continuous improvement in efficiency 4 30% additional capacity available
Slide 33: New Name Accounts
New Name Accounts 4 Fastest growth as a % of revenues in more than one year. 4 EnCana 4 European Investment Bank 4 50% of all License revenue this Q
Slide 34: Number of Seats
Growth driven by Enterprise Enterprise 6 million seats Follow On Department Number of Seats 1 million per year 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1996 1997 1998 1999 2000 2001 2002 96 97 98 99 00 01 Fiscal Years
Slide 35: Revenue & Margin Model
Revenue & Margin Model 4 Revenue Type • Product License: 50% • Product Maintenance 25% • Professional Services 25% 4 Overall Gross Margin: 75 % • Development 15% • Sales & Marketing 35% • General & Admin 10% 4 Operating Income 15%
Slide 36: Balance Sheet
Balance Sheet 4 Clean Balance sheet: 4 Cash $110 million 4 Working Capital $104 million 4 Def Revenue $ 24 million 4 Debt None 4 DSO 72 days 4 Pre-paid minimal 4 Cash Flow (last 2 Qtrs) $19 million
Slide 37: The Summary
Corporate Presentation 4 The Company 4 The Problem 4 The Solution 4 The Strategy 4 The Results 4 The Summary
Slide 38: Summary
Summary 4 Profits & cash flow with growth 4 MeetingZone will drive revenues 4 ROI story more relevant now 4 Continue to invest & invent 4 Acquisition of smaller players
Slide 39: Thank You
Thank You Great Minds Working Together TM