Investor Presentation

Transcription

1 Investor Presentation May 2009 Tom Jenkins Executive Chairman and Chief Strategy Officer Open Text Corporation Slide 1 Copyright 2009 Open Text Corporation. All rights reserved.

2 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 that may cause the actual results, performance or achievements of Open Text, or developments in Open Text s business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include all disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action. Forward-looking statements may also include any statement relating to future events, conditions or circumstances. Open Text cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. Forward-looking statements relate to, among other things, changes in the ECM market; the market focus of Open Text, Open Text s revenue mix and margin targets; Open Text s operations priorities; and Open Text s strategy for its products and solutions. The risks and uncertainties that may affect forward-looking statements include, among others, the completion and integration of acquisitions, the possibility of technical, logistical or planning issues in connection with deployments, the continuous commitment of Open Text's customers, demand for Open Text 's products and other risks detailed from time to time in Open Text's filings with the Securities and Exchange Commission and Canadian provincial securities regulators, including Open Text's Annual Report on Form 10-K for the year ended June 30, 2008 and Quarterly Report on Form 10- Q for the quarters ended September 30, 2008, December 31, 2008 and March 31, Forwardlooking statements are based on management s current plans, estimates, projections, beliefs and opinions, and the Company does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Slide 2

3 Open Text World's largest independent provider of Enterprise Content (ECM) software solutions Key Partnerships with SAP, MSFT and ORCL $800+ Million revenue annually & profitable 10yr CAGR: 32% Slide 3

4 What is ECM and Why is it Needed? ECM manages the entire lifecycle of unstructured data (e.g. Invoices, , 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 regulatory compliance ECM helps deliver fast ROI by streamlining business processes Slide 4

5 Global ECM Market Share Source: Market Share: Enterprise Content Software, Worldwide, 2007, Tom Eid and Bianca Granetto 28 May Gartner Inc. Slide 5

6 Gartner Magic Quadrant IBM EMC Open Text Oracle Microsoft Magic Quadrant for Enterprise Content, 23 September 2008 Karen Shegda, Toby Bell, Kenneth Chin, Mark R. Gilbert and Mick MacComascaigh Gartner, Inc. Slide 6

7 Open Text ECM Suite - Applications Case Contracts Business Applications Content Migration Business Applications Marketing Asset Accounts Payable ediscovery Document Collaboration & Community Web Content Records Capture and Delivery Business Process Digital Asset Archiving Content Reporting Slide 7

8 The ECM Repository Ecosystem PeopleSoft JD Edwards Slide 8

9 Strategic Partnerships Open Text has strategic partnerships with the world s major. infrastructure vendors: SAP, Microsoft, and Oracle Slide 9

10 Single Access for Users Slide 10

11 Enterprise Archive Enterprise Library Services Archiving Records Metadata Enterprise Search Intelligent Storage High Cost Low Cost Enterprise Disk Modular Disk SATA / JBOD Disk Optical / Worm / Tape Capacity Tape Slide 11

12 Global Customer Base Government Energy Pharmaceutical Financial Manufacturing Legal Telecoms Insurance Slide 12

13 Customer Example - BBC Digital Media Initiative (DMI) On-demand content and multi-platform services Leverage the BBC s assets Improved metadata for reporting and auditing Deliver to an audience of 3 billion cell phone users Slide 13

14 License Revenue by Industry 15% Government 15% Hi-tech/ Manufacturing 9% Consumer Products 9% Financial Services 13% Energy Slide 14

15 Global Revenue Mix 51% 43% 6% North America 51% Europe 43% EMEA 6% Slide 15

16 FY2009 Q3 Highlights Rev $192.0 million, up 7% yr/yr Lic rev $51.9 million Adj net income $31.4 million up 24% yr/yr Adj EPS $0.59 Adj operating margin 24.4%* Ops cash flow $72.9 million AR $111.7 million, DSO 52 days * before tax and interest expense Slide 16

17 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 *before interest interest expense expense Slide 17

18 Summary World's largest independent provider of Enterprise Content (ECM) software solutions Key Partnerships with SAP, MSFT and ORCL $800+ Million revenue annually, profitable, financially solid Slide 18

19 Thank You Slide 19 Copyright 2008 Open Text Corporation. All rights reserved.