Open Text Corporation · TSX:OTEX

Open Text — Shareholder Meeting (December 2008)

29 slides from Open Text's shareholder meeting presentation, Dec 9, 2008

  1. Slide 1: Fiscal 2008 Annual and Special Meeting of Shareholders

    Fiscal 2008 Annual and Special Meeting of Shareholders December 9, 2008 Tom Jenkins Executive Chairman and Chief Strategy Officer Open Text Corporation Slide 1 Copyright © 2008 Open Text Corporation. 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: Shareholders' Meeting

    Shareholders’ Meeting Tom Jenkins Executive Chairman & Chief Strategy Officer Open Text Corporation Slide 3 Copyright © 2008 Open Text Corporation. All rights reserved.

  4. Slide 4: Fiscal 2008 AGM

    Fiscal 2008 AGM Annual Financial Statements Elect Directors Re-appoint Auditors Amendments to the Corporation’s 2004 Stock Option Plan Slide 4 Copyright © 2008 Open Text Corporation. All rights reserved.

  5. Slide 5: Fiscal 2008 AGM

    Fiscal 2008 AGM Annual Financial Statements Elect Directors Re-appoint Auditors Amendments to the Corporation’s 2004 Stock Option Plan Slide 5 Copyright © 2008 Open Text Corporation. All rights reserved.

  6. Slide 6: Board of Directors

    Board of Directors Tom Jenkins Stephen J. Sadler Executive Chairman and Chief Chairman and Chief Executive Officer, Strategy Officer, Open Text Enghouse Systems Limited Corporation Michael Slaunwhite John Shackleton Executive Chairman, Halogen Software President and Chief Executive Officer, Inc. Ope

  7. Slide 7: Fiscal 2008 AGM

    Fiscal 2008 AGM Annual Financial Statements Elect Directors Re-appoint Auditors Amendments to the Corporation’s 2004 Stock Option Plan Slide 7 Copyright © 2008 Open Text Corporation. All rights reserved.

  8. Slide 8: Auditors

    Auditors KPMG Yonge Corporate Centre Suite 200, 4100 Yonge Street Toronto, ON M2P 3H3 Slide 8 Copyright © 2008 Open Text Corporation. All rights reserved.

  9. Slide 9: Fiscal 2008 AGM

    Fiscal 2008 AGM Annual Financial Statements Elect Directors Re-appoint Auditors Amendments to the Corporation’s 2004 Stock Option Plan Slide 9 Copyright © 2008 Open Text Corporation. All rights reserved.

  10. Slide 10: Corporate Presentation

    Corporate Presentation John Shackleton President, Chief Executive Officer Open Text Corporation Slide 10 Copyright © 2008 Open Text Corporation. All rights reserved.

  11. Slide 11: The Content Challenge

    The Content Challenge Ever-increasing volumes of information Mounting regulatory and legislative Disparate applications pressure with isolated repositories Slide 11 Copyright © 2008 Open Text Corporation. All rights reserved.

  12. Slide 12: Open Text Market Share: Drives Standards

    Open Text Market Share: Drives Standards Two technologies account for half of the market Source: Market Share: Enterprise Content Management Software, Worldwide, 2007, Gartner Inc. 2008 Updated by Open Text after the Captaris acquisition Slide 12 Copyright © 2008 Open Text Corporation. All rights re

  13. Slide 13: Open Text ECM Strategy for the IT Eco System

    Open Text ECM Strategy for the IT Eco System Desktop Environment Information Environment Slide 13 Copyright © 2008 Open Text Corporation. All rights reserved.

  14. Slide 14: Trusted Repository for the Enterprise Library

    Trusted Repository for the Enterprise Library Slide 14 Copyright © 2008 Open Text Corporation. All rights reserved.

  15. Slide 15: Strategic Partners

    Strategic Partners We are the only ECM vendor with in-depth strategic partnerships with the world’s largest business software vendors, Microsoft, Oracle and SAP Slide 15 Copyright © 2008 Open Text Corporation. All rights reserved.

  16. Slide 16: Update on FY 2008 Goals

    Update on FY 2008 Goals 1. Cross/Up sell into customer base - Achieved 65% license revenue from existing customers 2. Growth from SAP, ORCL, MSFT & Accenture partnerships - 38% of license revenue from partners 3. Expand sales efforts into HUM customer base - Began selling into customer base in Jan 2

  17. Slide 17: Good Fit - Open Text and Captaris

    Good Fit - Open Text and Captaris Open Text acquired Captaris on October 31st for approximately $131M Captaris provides another on-ramp for integrating content into Open Text ECM solutions The acquisition will expand Open Text’s partnership offerings by creating tighter integration with SAP and Orac

  18. Slide 18: FY 2009 Goals

    FY 2009 Goals 1. SAP, ORCL and MSFT partnerships drive strategy 2. Focus on profitability and cash flow 3. Customer rapid ROI, Web 2.0, VIM 4. Continue to cross/up sell into existing customer base 5. Captaris on operating model by end of FY 2009 Slide 18 Copyright © 2008 Open Text Corporation. All r

  19. Slide 19: Financial Overview

    Financial Overview Paul McFeeters Chief Financial Officer Open Text Corporation Slide 19 Copyright © 2008 Open Text Corporation. All rights reserved.

  20. Slide 20: FY 2008 Highlights

    FY 2008 Highlights Total Revenues Pre-tax Operating Margin $726 $176 $596 $130 35% 22% 2007 2008 2007 2008 Adjusted Net Income Adjusted EPS $107 $2.03 $74 $1.46 45% 39% 2007 2008 2007 2008 Slide 20 Copyright © 2008 Open Text Corporation. All rights reserved.

  21. Slide 21: Cash Flow

    Cash Flow Annual Operating Cash Flow $166 $111 50% Cash Balance $255 2007 2008 $150 70% 2007 2008 Slide 21 Copyright © 2008 Open Text Corporation. All rights reserved.

  22. Slide 22: Summary Financial Results FY 2008

    Summary Financial Results FY 2008 Summary of Financial Results (In millions of U.S. Dollars) Year ended June 30 2008 % of Rev 2007 % of Rev Year/Year% License $ 219 30% $ 183 31% 20% Customer support 364 50% 288 48% 27% Service 143 20% 126 21% 14% Total revenues 726 100% 596 100% 22% Cost of revenue

  23. Slide 23: FY 2008 Reconciliation to GAAP Income

    FY 2008 Reconciliation to GAAP Income Year Ended June 30, 2008 2007 Income from operations $ 176 $ 130 Amortization of technology & intangibles 72 61 Special Charges - 13 Stock Compensation 4 5 Other expense/(income) 24 19 Income taxes 23 10 Net Income - GAAP $ 53 $ 22 EPS - GAAP $ 1.01 $ 0.43 Slide

  24. Slide 24: FY2009 Q1 Highlights

    FY2009 Q1 Highlights Revenue Pre-tax Operating Margin $182 $164 $43 $40 10% 11% Q108 Q109 Q108 Q109 Adjusted EPS Adjusted Net Income $28 $0.53 $0.43 $22 23% 27% Q108 Q109 Q108 Q109 Slide 24 Copyright © 2008 Open Text Corporation. All rights reserved.

  25. Slide 25: Revenue and Pre-tax Margin Growth

    Revenue and Pre-tax Margin Growth 2008 24% $800 30% $726 $700 2006 18% 25% $600 $410 2004 18% 20% Revenues $ Millions $500 Operating Margin% $291 $400 15% 2002 13% $154 $300 10% $200 5% $100 $- 0% 1998 2008 Slide 25 Copyright © 2008 Open Text Corporation. All rights reserved.

  26. Slide 26: Revenue Mix & Margin Target Model

    Revenue Mix & Margin Target Model Revenue Type Product License 30-35% Product Maintenance 45-50% Professional Services 20-25% Overall Gross Margin 72-75% ________ Development 14-16% Sales & Marketing 24-26% General & Admin 9-10% Depreciation 2% Pre-tax Adj. Ops Margin 20-25%* ________ *before intere

  27. Slide 27: Questions?

    Questions? Slide 27 Copyright © 2008 Open Text Corporation. All rights reserved.

  28. Slide 28: FY 2009 Goals

    FY 2009 Goals 1. SAP, ORCL and MSFT partnerships drive strategy 2. Focus on profitability and cash flow 3. Customer rapid ROI, Web 2.0, VIM 4. Continue to cross/up sell into existing customer base 5. Captaris on operating model by end of FY 2009 Slide 28 Copyright © 2008 Open Text Corporation. All r

  29. Slide 29: Thank You

    Thank You Slide 29 Copyright © 2008 Open Text Corporation. All rights reserved.

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