Slide 1: Investor Presentation
Investor Presentation March 2011
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 © 2011 Open Text Corporation. All rights reserved. Copyright © 2010 Open Text Corporation. All rights reserved. 3
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 Copyright © 2011 Open Text Corporation. All rights reserved. Copyright © 2010 Open Text Corporation. All rights reserved. 4
Slide 5: Global ECM Market Share
Global ECM Market Share +5.5%↑ -3.9%↓ -0.3%↓ *Includes Microsoft SharePoint at 2.7% Market Share: Content Management Software, Worldwide, 2009, Tom Eid and Bianca Granetto 13 April 2010 Gartner Inc. Copyright © 2011 Open Text Corporation. All rights reserved. Copyright © 2010 Open Text Corporation.
Slide 6: Gartner ECM Magic Quadrant
Gartner ECM Magic Quadrant Figure 1. Magic Quadrant for Enterprise Content Management challengers leaders | (~ e@ Microsoft 2 ; IBM® @ Oracle § — eMce? Open Text a — ep ae — 8 Laserfiche® je ator 2 e@ Xerox a abason’ Poti @ Adobe ng re eA SaPeron pNewge ftware Technologies once SpringCM = thos Softw
Slide 7: 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 8: Ecosystem Strategy
Ecosystem Strategy Copyright © 2011 Open Text Corporation. All rights reserved. 8
Slide 9: Trusted Repository for Enterprise Content
Trusted Repository for Enterprise Content Copyright © 2011 Open Text Corporation. All rights reserved. 9
Slide 10: Enterprise Content
Enterprise Content Human Accounting Marketing Legal Call Center Resources Personnel Accounts Corporate Contract Case Management Payable Web Site Management Management Copyright © 2011 Open Text Corporation. All rights reserved. Copyright © 2010 Open Text Corporation. All rights reserved. 10
Slide 11: Open Text Product Portfolio
Open Text Product Portfolio Open Text ECM Suite Content Non-ECM 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 12: OpenText Media Management
OpenText Media Management Copyright © 2011 Open Text Corporation. All rights reserved. 12
Slide 13: OpenText Everywhere
OpenText Everywhere Copyright © 2011 Open Text Corporation. All rights reserved. 13
Slide 14: G20 Powered by Open Text
G20 Powered by Open Text Secure, Hosted, and Mobile Collaboration Site for Multilateral Governmental Collaboration Copyright © 2011 Open Text Corporation. All rights reserved. Copyright © 2010 Open Text Corporation. All rights reserved. 14
Slide 15: Diverse Customer Base
Diverse Customer Base Government Energy Pharmaceutical Financial Telecoms Manufacturing Legal AEC/Engineering Automotive Insurance Slide 15 Copyright © 2011 Open Text Corporation. All rights reserved. 15
Slide 16: FY2011 Q2 Results
FY2011 Q2 Results Total revenue $267.5 million, up 7.9% (2Q11 vs.2Q10) License revenue $79.2 million, up 8.9% (2Q11 vs.2Q10) Adjusted EPS $1.21, up 41% (2Q11 vs.2Q10)* Pre-tax adjusted operating margin 31.6%, up from 28.8% (2Q11 vs.2Q10)** Operating cash flow $40.0 million Cash and cash equivalents
Slide 17: Metastorm Acquisition
Metastorm Acquisition • Leading Business Process Management (BPM) software company based in Baltimore, Maryland • According to Gartner, the BPM market was $1.9 billion in 2009, growing 15 percent that year • Key addition to OpenText’s Microsoft partner strategy • $70-75M run rate; approximately 350
Slide 18: FY2010 Global Revenue Mix
FY2010 Global Revenue Mix 41% 52% 7% North America – 52% Europe – 41% Asia Pac/Other – 7% Slide 18 Copyright © 2011 Open Text Corporation. All rights reserved. Copyright © 2010 Open Text Corporation. All rights reserved. 18
Slide 19: 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% Copyright © 2011 Open Text Corpor
Slide 20: Thank You
Thank You Copyright © 2011 Open Text Corporation. All rights reserved. 20
Slide 21: Reconciliation of Adjusted Operating Margin to GAAP Net Income
Reconciliation of Adjusted Operating Margin to GAAP Net Income* (in ‘000s USD) 2Q10 2Q11 Non GAAP adjusted operating margin (31.6% and 28.8% $ 71,383 $ 84,455 respectively) Less: Amortization 23,887 25,676 Share-based compensation expense 1,160** 2,737 Special charges 10,423 3,461 Other income, net
Slide 22: Reconciliation of GAAP based EPS to Non GAAP based EPS
Reconciliation of GAAP based EPS to Non GAAP based EPS (on a diluted basis)* 2Q10 2Q11 Non GAAP-based adjusted EPS $ 0.87 $ 1.21 Less: Amortization 0.41 0.44 Share-based compensation expense 0.02 0.05 Special charges 0.18 0.06 Other income, net 0.03 0.10 GAAP based provision for income 0.18 0.12 tax