Investor Presentation

Transcription

1 Investor Presentation September 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. The historical increases in the Company's revenues and earnings do not assure the revenues and earnings will not decrease in the future. 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, Forward-looking 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 Management (ECM) software solutions $785.7 million revenue in FY09 Operating margins of 25% (FY09) 24% Revenue CAGR over 10 yrs ( ) Key Partnerships with SAP, MSFT and ORCL Slide 3

4 Ten Year EPS Growth of the TSX 300 Article in June by Globe & Mail Open Text was the second highest creator of earnings per share over a 10 year period on the TSX Slide 4 Copyright Open Text Corporation. All rights reserved.

5 Open Text Ranked 15 th in Fortune Magazine s 100 Fastest Growing Companies in the World 15 th fastest growing company overall 6 th fastest growing technology company Ranking based on three-year profit increase of 132 percent and revenue growth of 27 percent for the same time period Companies on the list described by Fortune as "the world's supercharged performers" Slide 5

6 Global ECM Market Share EMC/ Documentum 14% Others 46% IBM 22% Open Text *18% Market Share: Enterprise Content Management Software, Worldwide, , Tom Eid and Bianca Granetto 5 June Gartner Inc. *Gartner reported 15.3% for Open Text and 2.4% for Vignette, yielding 18% market share for Open Text as a combined entity. Slide 6

7 ECM 2008 Magic Quadrant Leader IBM EMC Open Text Oracle Microsoft Open Text has the most complete vision in the market second only to Microsoft For the third year in a row, Open Text is one of the top three ECM vendors in ability to execute Magic Quadrant for Enterprise Content Management, 23 September 2008 Karen Shegda, Toby Bell, Kenneth Chin, Mark R. Gilbert and Mick MacComascaigh Gartner, Inc. Open Text is the ONLY independent pure-play ECM vendor in the leaders quadrant. ECM is not a sideline it s our only business Slide 7 Copyright Open Text Corporation All rights reserved.

8 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 8

9 Open Text ECM Suite Document Management Collaboration & Community Management Web Content Management Records Management Management Capture and Delivery Business Process Management Digital Asset Management Archiving Content Reporting Slide 9 Copyright Open Text Corporation All rights reserved.

10 The ECM Repository Ecosystem PeopleSoft JD Edwards Slide 10

11 Strategic Partnerships Open Text has strategic partnerships with the world s major infrastructure vendors:. SAP, Microsoft, and Oracle Slide 11

12 Single Access for Users Slide 12

13 Enterprise Archive Enterprise Library Services Archiving Records Management Metadata Management Enterprise Search Intelligent Storage Management High Cost Low Cost Enterprise Disk Modular Disk SATA / JBOD Disk Optical / Worm / Tape Capacity Tape Slide 13

14 But there is more on the horizon Phases of the Internet Evolution ECM 3.0 ECM 2.0 ECM 1.0 The Cloud Semantic Desktop Slide 14 Copyright Open Text Corporation All rights reserved.

15 June 2009 Social Media Product Launch Open Text impressed many people with their new enterprise social media and collaboration tools. With a solid enterprise-class suite of tools, Open Text was one of the few ECM/Portal players to make a showing and a splash at the conference. Whereas many E2.0 vendors target low-tech SMBs, only some vendors have the depth of credentials to handle Enterprise 2.0 (with a capital E ) with its many hairy concerns. -- Analyst Gil Yehuda, Enterprise 2.0 Boston, June 2009 Slide 15

16 Enterprise Evidence of Innovation Leadership Slide 16 Copyright Open Text Corporation All rights reserved.

17 Global Customer Base Government Energy Pharmaceutical Financial Manufacturing Legal Telecoms Insurance Slide 17

18 Q4 License Revenue by Industry 18% Government 29% Hi-tech/ Manufacturing 9% Financial Services 11% Pharma/Life Sciences 15% Energy Slide 18

19 FY2009 Global Revenue Mix 50% 45% 5% North America 50% Europe 45% EMEA 5% Slide 19

20 FY2009 Q4 Highlights Rev $203.4 million, up 2% yr/yr Lic rev $63.0 million Adj EPS $0.73, up 18% Adj operating margin 26.5% up from 24.3%* Ops cash flow $38.6 million * before tax and interest expense Slide 20

21 FY2009 Highlights Rev $785.7 M up 8% yr/yr Lic rev $229.8 M up 5% yr/yr Adj EPS $2.49 up 22% yr/yr Adj operating margin 25.2% up from 24.3% yr/yr* Ops cash flow $176.2 M vs $166.0 M last year Cash balances $275.8 M *before interest expense * before interest expense and debt service Slide 21

22 Revenue Mix & Margin Target Model Revenue Type Product License 25-30% Product Maintenance 50-55% 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 22-27%* *before *before interest interest expense expense Slide 22

23 Summary World's largest independent provider of Enterprise Content Management (ECM) software solutions Key Partnerships with SAP, MSFT and ORCL $785.7 million revenue in FY09, profitable, financially solid Slide 23

24 Thank You Slide 24 Copyright 2008 Open Text Corporation. All rights reserved.