Annual Stockholder Meeting

Transcription

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2 Annual Stockholder Meeting Jeff Henley Oracle Vice Chairman November 16, 2016 Copyright 2016, Oracle and/or its affiliates. All rights reserved.

3 Safe Harbor Statement Statements in this presentation relating to Oracle s future plans, expectations, beliefs, intentions and prospects, are forward-looking statements and are subject to material risks and uncertainties. Many factors could affect our current expectations and our actual results, and could cause actual results to differ materially. A detailed discussion of these factors and other risks that affect our business is contained in our U.S. Securities and Exchange Commission (SEC) filings, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading Risk Factors. Copies of these filings are available online from the SEC or by contacting Oracle s Investor Relations Department at (650) or by clicking on SEC Filings on Oracle s Investor Relations website at All information set forth in this presentation is current as of November 16, Oracle undertakes no duty to update any statement in light of new information or future events. Copyright 2016, Oracle and/or its affiliates. All rights reserved. 3

4 Non-GAAP Financial Measures To supplement our financial results presented on a GAAP basis, we use non-gaap measures, which exclude certain business combination accounting entries and expenses related to acquisitions and other significant expenses including stock based compensation, that we believe are helpful in understanding our past financial performance and our future results. Our non-gaap financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Today s discussion includes certain non-gaap financial measures, which were included in our earnings releases. At the end of this presentation, we have included a GAAP to non-gaap reconciliation, which can be viewed and downloaded. Copyright 2016, Oracle and/or its affiliates. All rights reserved. 4

5 Company Profile Scale $37.0B in revenue in FY16 420,000 customers in 145 countries, including 100 of the Fortune 100 $45B in R&D since 2004 $60B invested in 100+ acquisitions More than 25,000 partners More than 135,000 employees 16,000 customer support specialists, speaking 29 languages 18,000 consulting experts 3.1 million students supported annually Innovation #1 in 50 product/industry categories #2 software company in the world #2 cloud company in the world #17 of 100 Top Global Brands, Interbrand 2016 More than 17,000 patents worldwide 40,000 developers and engineers 2.5 million registered members of the Oracle Technology Network Community 900 independent Oracle user groups with 500,000 members Copyright 2016, Oracle and/or its affiliates. All rights reserved. 5

6 Leader in Key Segments Technology Application Server Database Database on Linux Database on Unix Data Warehouse Embedded Database Engineered Systems Middleware Applications Business Analytics Enterprise Performance Management Lead Management Marketing Automation Supply Chain Execution Talent Management Talent Recruiting Industries Banking Communications Financial Services Healthcare Public Sector Retail Copyright 2016, Oracle and/or its affiliates. All rights reserved. 6

7 A Better Way: Cloud Computing Lower cost Less complexity More reliability Better security Rapid innovation Simple Public Cloud Copyright 2016, Oracle and/or its affiliates. All rights reserved. 7

8 Cloud Simple, Economical, Continuous Innovation Deploy Anywhere Manage On-Premise or Private Cloud Secure Optimize Performance Lower TCO Cloud Move workloads between on-premises and public cloud Copyright 2016, Oracle and/or its affiliates. All rights reserved. 8

9 Fiscal Year 2016 Financial Performance FY 2016 Cloud SaaS & PaaS Revenue +52% Total Cloud & On-Premise Software Revenues +3% Total Hardware Revenues -5% Total Revenues +2% Operating Income -4% Operating Margin 43% Earnings per Share 0% Free Cash Flow $12B Year-over-year growth rates are non-gaap and presented in constant currency. GAAP to Non-GAAP reconciliations available at the end of this presentation. Copyright 2016, Oracle and/or its affiliates. All rights reserved. 9

10 Revenue FY16 Geographic Distribution 16% 29% 55% Americas EMEA Asia Pacific Copyright 2016, Oracle and/or its affiliates. All rights reserved. 10

11 Revenue FY16 Line of Business Distribution 9% 13% Software Hardware Services 78% Copyright 2016, Oracle and/or its affiliates. All rights reserved. 11

12 Revenue FY16 Line of Business Distribution 9% 8% 13% On-Premise Software Cloud Hardware Services 70% Copyright 2016, Oracle and/or its affiliates. All rights reserved. 12

13 SaaS Revenue.... Accelerating Growth +42% +36% +23% SaaS Revenue FY13 FY14 FY15 FY16 Amounts are non-gaap constant currency and exclude vertical SaaS services. Growth rates are year over year. Copyright 2016, Oracle and/or its affiliates. All rights reserved. 13

14 PaaS Bookings... Faster Ramp than Fusion SaaS New & Expansion Bookings (ARR) ~$500M >$150M Fusion SaaS PaaS 1st Year 2nd Year 3rd Year 4th Year Copyright 2016, Oracle and/or its affiliates. All rights reserved. 14

15 Oracle SaaS-PaaS... Accelerating While Others Are Not 80% 56% 65% 39% 29% 28% 33% 34% 37% 24% ORCL CRM WDAY MRQ-7 MRQ-6 MRQ-5 MRQ-4 MRQ-3 MRQ-2 MRQ-1 MRQ Oracle Non-GAAP SaaS-PaaS revenue growth rates as compared with competitor cloud subscription growth rates. All figures and growth rates are based on non-gaap USD revenue. MRQ is the Most Recent Quarter and reflects Q1FY17 for Oracle and Q2FY17 for CRM and WDAY. Copyright 2016, Oracle and/or its affiliates. All rights reserved. 15

16 Total Software... Recurring Revenue 5-Year CAGR of 7% SaaS & PaaS + SW Support New Software License 62% 62% 66% 67% 70% 74% Recurring 38% 38% 34% 33% 30% 26% Transactional FY11 FY12 FY13 FY14 FY15 FY16 Copyright 2016, Oracle and/or its affiliates. All rights reserved. 16

17 Capital Allocation FY14-FY16 Share Repurchases & Dividends 62% higher than FY11-FY13 $ Billions 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 FY11-FY13 FY14-FY16 Dividends Buybacks Source: Internal Analysis Copyright 2016, Oracle and/or its affiliates. All rights reserved. 17

18 A Very Healthy Balance Sheet Return on Equity (TTM) 19% Return on Assets (TTM) 7% Cash & Investment (MRQ) $68B Debt to Equity (MRQ) 1.13x Net Cash (MRQ) $14B Above figures are derived from GAAP results for the four most recent quarters including Q1 FY2017. TTM Trailing Twelve Months; MRQ Most Recent Quarter Copyright 2016, Oracle and/or its affiliates. All rights reserved. 18

19 Reconciliation Summary GAAP to Non-GAAP Slide 9 FY16 SaaS/PaaS SW & Cloud HW Total Revenues Operating Income GAAP Growth Rates in Constant Currency Business Combination Accounting Adjustments Non GAAP Growth Rates in Constant Currency GAAP Growth Rates in Constant Currency Business Combination Accounting Adjustments Non GAAP Growth Rates in Constant Currency GAAP Growth Rates in Constant Currency Business Combination Accounting Adjustments Non GAAP Growth Rates in Constant Currency GAAP Growth Rates in Constant Currency Business Combination Accounting Adjustments Non GAAP Growth Rates in Constant Currency GAAP Growth Rates in Constant Currency Non-GAAP expense adjustments Non GAAP Growth Rates in Constant Currency 52% 0% 52% 3% 0% 3% (5)% 0% (5)% 2% 0% 2% (2)% (2)% (4)% Note1 We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2015, which was the last day of our prior fiscal year, rather than the actual exchange rates in effect during the respective periods. Copyright 2016, Oracle and/or its affiliates. All rights reserved. 19

20 Reconciliation Summary GAAP to Non-GAAP Slide 13 (SaaS excluding Verticals) FY14 FY15 FY16 SaaS GAAP Growth Rates in Constant Currency 28% 37% 43% Business Combination Accounting Adjustments (5)% (1)% (1)% Non GAAP Growth Rates in Constant Currency 23% 36% 42% Note 1 We compare the percent change in the results from one period to another period using constant currency disclosure. We present constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the exchange rates in effect on May 31, 2016, for fiscal 2016, 2015 and 2014, rather than the actual exchange rates in effect during the respective periods. Slide 15 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 MRQ-7 MRQ-6 MRQ-5 MRQ-4 MRQ-3 MRQ-2 MRQ-1 MRQ SaaS/PaaS GAAP Growth Rates in US Dollar 39% 30% 29% 34% 34% 57% 66% 77% Business Combination Accounting Adjustments (1)% (1)% (1)% (1)% (0)% (1)% (1)% 3% Non GAAP Growth Rates in US Dollar 39% 29% 28% 33% 34% 56% 65% 80% Copyright 2016, Oracle and/or its affiliates. All rights reserved. 20

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