Open Text Corporation · TSX:OTEX

Open Text — Investor Day (November 2008)

19 slides from Open Text's investor day presentation, November 2008

  1. Slide 1: CFO Update

    CFO Update Paul McFeeters, Chief Financial Officer November 2008 Copyright © 2008 Open Text Inc. All rights reserved.

  2. 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

  3. Slide 3: OTC Analyst Models – FY09 (Average of Published Models)

    OTC-Analyst Models – FY09 (Average of 10 Published Models) (In millions of U.S. dollars) FY09 Average Revenues: License $ 257 Customer support $ 427 Service $ 161 Cost of Sales $ 220 Operating Expenses: Research & development $ 129 Sales & marketing $ 214 G&A $ 84 Depreciation $ 13 Adjusted EPS $ 2.

  4. Slide 4: OTC Major Currencies as Reported in Q1 FY09 Press Release

    OTC Major Currencies as Reported in Q1 FY09 Press Release Currencies % of Revenue % of Expenses EURO 29% 25% GBP 11% 12% CHF 7% 4% CAD 8% 27% USD 38% 27% Others 7% 5% Total 100% 100% Copyright © 2008 Open Text Inc. All rights reserved. Slide 4

  5. Slide 5: FX Rates - Post Q1 FY09

    FX Rates - Post Q1 FY09 Major Currencies FX Rates (Vs USD) 12-Nov 30-Sep Changes EURO 1.252 1.430 -13% GBP 1.496 1.810 -17% CHF 0.843 0.907 -7% CAD 0.809 0.956 -15% Copyright © 2008 Open Text Inc. All rights reserved. Slide 5

  6. Slide 6: FX impact on License Revenue - Example

    FX impact on License Revenue - Example (In millions of U.S. dollars) % of Analyst Model Post Q1 Post Q1 Currencies License Revenue License Revenue FX Changes FX impact EURO 29% $ 75 -13% $ (8) GBP 11% 28 -17% (4) CHF 7% 18 -7% (1) CAD 8% 21 -15% (3) USD 38% 98 - Others 7% 17 -15% (2) Total 100% $ 25

  7. Slide 7: FX impact on Customer Support Revenue - Example

    FX impact on Customer Support Revenue - Example (In millions of U.S. dollars) % of Analyst Model Post Q1 Post Q1 Currencies CS Revenue CS Revenue FX Changes FX impact EURO 29% $ 124 -13% $ (12) GBP 11% 47 -17% (6) CHF 7% 30 -7% (2) CAD 8% 34 -15% (4) USD 38% 162 - Others 7% 30 -15% (3) Total 100% $

  8. Slide 8: FX impact on Service Revenue - Example

    FX impact on Service Revenue - Example (In millions of U.S. dollars) % of Analyst Model Post Q1 Post Q1 Currencies Service Revenue Service Revenue FX Changes FX impact EURO 29% $ 47 -13% $ (5) GBP 11% 18 -17% (2) CHF 7% 11 -7% (1) CAD 8% 13 -15% (2) USD 38% 61 - Others 7% 11 -15% (1) Total 100% $ 16

  9. Slide 9: FX impact on Total Expenses - Example

    FX impact on Total Expenses - Example (In millions of U.S. dollars) % of Analyst Model Post Q1 Post Q1 Currencies Total Expenses Total Expenses FX Changes FX impact EURO 25% $ 165 -13% $ (16) GBP 12% 79 -17% (11) CHF 4% 26 -7% (1) CAD 27% 178 -15% (22) USD 27% 178 - Others 5% 34 -15% (4) Total 100%

  10. Slide 10: Captaris Purchase Price Accounting – US GAAP

    Captaris Purchase Price Accounting – US GAAP Determine fair value the net assets acquired Value IP and Customer intangibles Excess of PP over Net Assets and Intangibles = Goodwill Accounting rules do contemplate and permit a one year allocation period to determine the fair values for items for which

  11. Slide 11: Captaris - Deferred Revenues

    Captaris - Deferred Revenues Deferred revenue acquired represents a legal obligation to perform (i.e. to provide future services). Software companies take a “haircut” and reduce acquired deferred revenue OR values it as cost to perform services plus a reasonable profit. So (for instance) Captaris’s

  12. Slide 12: Captaris - Intangible Assets and Goodwill

    Captaris - Intangible Assets and Goodwill Typically, we have recognized (in the context of our acquisitions) customer-related intangibles and technology based intangibles and these are then amortized over the estimated useful life. Goodwill not amortized but tested annually for impairment Copyright

  13. Slide 13: Captaris Exit Costs

    Captaris Exit Costs As indicated in our September 30, 2008 10Q (see Note 19 – Subsequent Events) we expect to make reductions to Capa’s legacy headcount and facilities i.e. implement a Capa restructuring plan. These plans are covered under US GAAP by guidance known as “EITF 95-3” which deals with th

  14. Slide 14: Captaris Exit costs (continued)

    Captaris Exit costs (continued) We expect the approximate costs of the Capa restructuring plan estimated from $15-$18 million (consisting of $8-$9 million of employee costs; $7-$9 million of facility abandonment costs; and $1 million of miscellaneous contract termination costs). Does not increase th

  15. Slide 15: Note 19 - Subsequent Events: Acquisition of Captaris

    Note 19-Subsequent Events (extracted from September 30, 2008, 10Q) NOTE 19—SUBSEQUENT EVENTS Acquisition of Captaris On October 31, 2008 we announced the acquisition of Captaris, Inc. (Captaris) a provider of software products that automate “document-centric” processes. As a result of this acquisiti

  16. Slide 16: Note 19 - Subsequent Events: Restructuring Plans

    Note 19-Subsequent Events (extracted from September 30, 2008, 10Q) NOTE 19—SUBSEQUENT EVENTS Acquisition of Captaris The Fiscal 2009 Restructuring Plan and the Captaris Restructuring Plan On November 3, 2008 we announced the implementation of a plan to restructure our operations and consolidate our

  17. Slide 17: Note 19 - Subsequent Events continued

    Note 19-Subsequent Events (extracted from September 30, 2008, 10Q) NOTE 19—SUBSEQUENT EVENTS continued: These are preliminary estimates and may change upon the finalization of the complete details of the Fiscal 2009 restructuring plan; we expect to finalize these details during November 2008. In acc

  18. Slide 18: Note 19 - Subsequent Events: Captaris restructuring plan

    Note 19-Subsequent Events (extracted from September 30, 2008, 10Q) NOTE 19—SUBSEQUENT EVENTS Acquisition of Captaris In addition, we also expect to make certain reductions in the legacy employee head count and office facilities of Captaris (Captaris restructuring plan) and are, at the moment, in the

  19. Slide 19: Questions?

    Questions? Copyright © 2008 Open Text Inc. All rights reserved. Slide 19

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