2001 - bedford funding · claymore systems group collier-jackson, inc. comp-tech incorporated...

20012005Insolvency to Innovationthe five-year record

Special Shareholders Meeting January 19, 2006

Geac Shareholder Book 1/9/06 10:43 AM Page 2

“Innovation,” argued Joseph Schumpeter, led to gales of “creative

destruction” as innovations caused old inventories, ideas, technologies,

skills, and equipment to become obsolete. The question, as Schumpeter

saw it, was not “how capitalism administers existing structures,... [but]

how it creates and destroys them.” This creative destruction, he

believed, caused continuous progress and improved standards.

Capitalism, Socialism and Democracy (1942) Joseph R. Schumpeter

Professor of Economics, Harvard University Founding President, The Econometric Society

Creative Destruction

FINANCIAL CONDITION | 1 (five-year perspective)

STRATEGY | 3

SHAREHOLDERS | 6

CUSTOMERS | 10

EMPLOYEES | 12

�

TABLE OF CONTENTS


P. 1�

FINANCIAL CONDITION STRATEGY | SHAREHOLDERS | CUSTOMERS | EMPLOYEES

Status of Geac — Then and Now

April 30, 2001 July 31, 2003 Current

Share Price (US$) US$1.12 US$3.59 To be acquired forUS$11.10 per share

Market Capitalization US$69 million US$302 million US$1 billion

Cash Net of Bank (US$2.1 million) US$85.7 million US$226.5 millionIndebtedness

Current Assets US$137 million US$169 million US$288 million

Current Liabilities US$305 million US$222 million US$166 million

Credit Line US$225 million US$50 million US$150-US$200 credit facility in from Wells Fargo million credit line default. Geac Foothill available led byforced to repay (to be signed) Bank of America

and Citigroup, and including JP Morgan Chase, CIBC, Malayan Banking, and Standard Federal Bank

License Revenues 11% of total FY01 12% of total FY03 16% of total FY05 revenue, revenue, almost all revenue, almost all of which 26% was from from tier upgrades from tier upgrades the sale of newly and additional seats and additional seats developed products

Pending Event Credit line expiration, Purchase of Comshare Sale of companyextensions from banks


P. 2�

FINANCIAL CONDITION STRATEGY | SHAREHOLDERS | CUSTOMERS | EMPLOYEES

Overview of the Past Five Years

Stock Chart (US$)

Summary Financial Statement (Fiscal Year Ending April 30)

– Nov-05

– Sep-05

– Jul-05

– May-05

– Mar-05

– Jan-05

– Nov-04

– Sep-04

– Jul-04

– May-04

– Mar-04

– Jan-04

– Nov-03

– Sep-03

– Jul-03

– May-03

– Mar-03

– Jan-03

– Nov-02

– Sep-02

– Jul-02

– May-02

– Mar-02

– Jan-02

– Nov-01

– Sep-01

– Jul-01

– May-01

– Mar-01

– Jan-01

– Nov-00

$12 –

$10 –

$8 –

$6 –

$4 –

$2 –

$0 –

11-7-05: Sale to GoldenGate Capital announced

9-10-03: US$50 million creditfacility from Wells Fargo Foothill

10-15-03: Donna de Winterpromoted to CFO

9-27-01: Geac raises C$27million by issuing stock

7-18-03: Charles S. Jonesbecomes CEO & President

6-23-03: Geac announcesaquisition of Comshare.Completed 8-15-03

8-26-02: Geac announcesacquisition of Extensity.Completed 3-26-03

11-3-00: Charles S. Jones appointedExecutive Chairman. John E. Caldwellappointed interim President & CEO

5-31-01: C$20 million raise announced through issueof stock and special warrants. Issue complete 6-29-01

2-3-04: NASDAQ Listing

8-11-05: $150-$200 million creditline led by Bank of America andCitigroup announced

Shar

e Pr

ice

(US$

)

US$ Millions FY2001 FY2002 FY2003 FY2004 FY2005(Except Earnings per Share)

Software $ 59.8 $ 53.4 $ 49.4 $ 65.2 $ 71.0

Support & Services $ 442.9 $ 370.8 $ 328.5 $ 355.0 $ 360.9

Hardware $ 49.2 $ 33.1 $ 30.6 $ 25.1 $ 12.4

Total Revenues $ 551.9 $ 457.3 $ 408.5 $ 445.3 $ 444.4

EBITDA $ 57.4 $ 85.6 $ 65.7 $ 87.7 $ 100.2

EBITDA Margin 10.4% 18.7% 16.1% 19.7% 22.5%

Net Income $ (169.1) $ 33.7 $ 31.9 $ 57.2 $ 77.0

Net Income Margin -30.6% 7.4% 7.8% 12.8% 17.3%

Earnings per Share (US$) $ (2.72) $ 0.45 $ 0.39 $ 0.66 $ 0.87


P. 3�

FINANCIAL CONDITION STRATEGY SHAREHOLDERS | CUSTOMERS | EMPLOYEES

Change and Focus

Getting Strategic Focus: Defining a Single Audience Geac is the software solution for the Chief Financial Officer. Whether our customers have a need todo more with less as a result of an increasingly competitive environment, or as a result of regulatorypressure, Geac provides best-in-class technology solutions for the issues confronting the ChiefFinancial Officer.

Geac Change Pie

SHAREHOLDERS

EMPLOYEES

New Products

Pricing

ApplicationSystems

InfrastructureDevelopment

FiscalDiscipline

ROISales Mgmt.

Channels

Value forMaintenance

Acquisitions

Partnering

Market ResearchCustomer FocusCompetitive IntelligenceIndustry Analysis

Training

MPC (Budgeting and Planning)

Processes/Procedures

Real EstateLegal Disciplines

Benchmarking MetricsContinuous Improvement

SOX Compliance Systems

Salesforce.com (CRM)

Softrax (Contract Mgmt.)

Employee CommunicationsPerformance Management

Fulfilling the Vision —Performance & Strategy

ReshapingMarketing

ReculturingEmployeeManagement

CUSTOMERS


P. 4

Getting Strategic Focus

Over 2 Decades, More than 40 Legacy Software Acquisitions

Building One Company Around Gartner’s Financial Value Chain

�


�Advanced BusinessTechnologies

�Clarus Corporation (Assets) �Claymore Systems Group �Collier-Jackson, Inc. �Comp-Tech Incorporated �Compro �Comshare �Control Transaction

Corporation �Convergent Solution Pty. Ltd. �Cruickshank Technology Pty. �Cybergraphic Group �Datamark International Limited

�DDN Holdings Northern Ltd. �Dun & Bradstreet Software

Services �EBC Informatique �ECI Computer Inc. �Extensity �Fasfax Corporation �Florida Computer & Network �FGH Decision Support

Systems �Gazette Technologies �Hotel Computer Systems

Limited �Hotel Systems Pty. Limited �JBA Holdings plc

�JBA Italia s.r.l. �LIBRA Corporation

Signature Divison �Management Data GmbH �Matrix Publishing Systems �MJC Systems Spol. S.r.o. �New Tech Hospitality

Systems Ltd. �News Holding/Interealty �OCS Technology Public

Safety Unit �Perc Technical Services �Phoenix Systems Ltd. �Praxa Limited �Princeton Network Systems

�Pro-Mation, Inc. �Real Estate Unit,

GTE Enterprise �Remanco International �RunTime A/S �Software Shop Systems, Inc. �Soluzioni Gestionali srl �Stowe Computing Australia �Stowe Computing

(NZ) Limited �Technology Services Group �Tranti Systems Inc. �TWG Technologies

Note: Geac MPC has been integrated into several enterprise applications: Anael, EnterpriseServer, Property Management, and Local Government all offer performance management functionality.

UmbrellaStrategy

CoreStrategy

BUYBUILDPARTNER

Management

Processes

TransactionsFinancialsFixed AssetsSupply ChainAccountingHR/PayrollProcurementInventory


P. 5

Geac’s Recent Acquisitions

Umbrella Strategy: Process and Management

�


Extensity (NASDAQ: EXTN)

�Expense management software

�Headquarters: Emeryville, CA

�Price: C$74.0 million

�Cash/short-term investments: C$43.9 million

�Tax assets: C$7.6 million

�Completed 3/6/03

�After acquisition, strategy changed, hosted “thin client” product developed

�Converted division losses to profitability with strict cost-cutting initiatives

Comshare (NASDAQ: CSRE)

�Budgeting/planning software

�Headquarters: Ann Arbor, MI

�Price: US$53.8 million

�Net cash/short-term investments: US$14.7 million

�Revenue: US$58.3 million

�Completed 8/14/03

�After acquisition, implemented significant cost cuts and released next-generation MPC product

�Geac also migrated MPC technology into many of its legacy platforms


P. 6�

FINANCIAL CONDITION | STRATEGY SHAREHOLDERS CUSTOMERS | EMPLOYEES

Comparable Net Income (% of Revenue)

Achieving Above-Average Profitability

Ratios are the most recent 12 months’ total net income after taxes divided by total revenues.

MANU

HUMC

IFSB.ST

INTB.ST

LWSN

SSAG

BOBJ

HYSL

QADI

COGN

SAP

EPIC

GEAC

ORCL

IBSB.ST

30% –

25% –

20% –

15% –

10% –

5% –

0% –

-5% –

-10% –

-15% –

-20% –

26%

23%21%

19%17%

15%

10% 10%8% 7% 6%

-2%

0%

-3%

-13%


P. 7

Five-Year Historical Performance

Historical Earnings (US$ Millions) and Stock Price (US$)

Five-Year Comparable Stock Performance

�


Note: Prices have beenadjusted for splits. Currentprice is the buyout price forGeac and the closing priceas of 1/5/2006 for the othercompanies and indices.

– Dec-05– Oct-05– Aug-05– Jun-05– Apr-05– Feb-05– Dec-04– Nov-04– Sep-04– Jul-04– M

ay-04– M

ar-04– Jan-04– Nov-03– Sep-03– Jul-03– M

ay-03– Apr-03– Feb-03– Dec-02– Oct-02– Aug-02– Jun-02– Apr-02– Feb-02– Dec-01– Oct-01– Aug-01– Jun-01– Apr-01– Feb-01– Jan-01– Nov-00

$100 –

$50 –

$0 –

($50) –

($100) –

($150) –

($200) –

– $12.00

– $10.00

– $8.00

– $6.00

– $4.00

– $2.00

– $0.00

Geac Stock Price (US$)

Geac

Ann

ual E

arni

ngs

(US$

M)

Earnings (US$M) Geac Stock Price (US$)-$169.1

$33.7 $31.9

$57.2

$77.0

Security/Index 4/30/2001 Current Change

Geac (US$) $ 1.12 $ 11.10 889%NASDAQ Composite 2,116 2,277 8%Dow Jones Industrial Avg. 10,735 10,882 1%TSX Average 9,348 11,508 23%

Business Objects $ 36.20 $ 42.59 18%Cognos $ 20.36 $ 34.47 69%Epicor $ 1.15 $ 14.41 1153%Hummingbird $ 19.00 $ 22.53 19%Hyperion $ 11.21 $ 36.16 223%Manugistics $ 33.92 $ 1.80 -95%Oracle $ 16.16 $ 12.79 -21%QAD, Inc. $ 2.91 $ 7.81 168%SAP $ 39.18 $ 47.94 22%


P. 8

Three-Year Historical Performance

Historical Earnings (US$ Millions)

Historical Operations Cash Flow Less Capital Expenditures (US$ Millions)

�


ERP index is equal weights in Lawson, JDA,Epicor, QAD and ManhattanAssociates.

BI/PM index isequal weights inBusiness Objects,Hyperion, Cognos,Actuate andInformatica.– Dec-05

– Nov-05

– Oct-05

– Sep-05

– Aug-05

– Jul-05

– Jun-05

– May-05

– Apr-05

– Mar-05

– Feb-05

– Jan-05

– Dec-04

– Nov-04

– Oct-04

– Sep-04

– Aug-04

– Jul-04

– Jun-04

– May-04

– Apr-04

– Mar-04

– Feb-04

– Jan-04

– Dec-03

– Nov-03

– Oct-03

– Sep-03

– Aug-03

– Jul-03

300% –

250% –

200% –

150% –

100% –

50% –

0% –Geac ERP Index BI/PM Index

$90 –

$80 –

$70 –

$60 –

$50 –

$40 –

$30 –

$20 –

$10 –

$0 – FY2003 FY2004 FY2005

$76.5

$63.0

$27.0

US$

Milli

ons


P. 9

License Growth

Annual License Revenues: The Growth Driver

Most Recent Quarter Organic License Growth (Adjusted for Acquisitions)

�


Note: Adjustments are based on recent acquisitions. Business Objects adjusted for 37 days of SRC acquisition, assumed annual revenue of $27.5 million, license revenue of $9 millionor $750,000 per month. Scala licenses assumed to account for 27.3% of Epicor’s licenses (as was the case in preceding quarter), adjusted for 39 days since Scala was bought 39days into the previous year's quarter. IBS had 3 acquisitions with annual revenues of approx. SEK 200 million per year or SEK 50 million per quarter: licenses assumed to be SEK 15million per quarter. RedDot license contribution unknown, but purchase price was EUR 43.6 million, assume two times revenue price, so revenue of approx. $6 million per quarter, and license revenues of approx $1.5 million/quarter. Oracle growth rate is for application software, using Oracle’s reported figures plus the figures for PeopleSoft for the quarter endedSeptember 30, 2004. Because of the PeopleSoft acquisition, the Oracle growth rate represented in this chart may be materially distorted. For information on any of the companiesincluded above, please refer to published financial statements, quarterly press releases, and MD&A discussion on their respective websites.

– Oct-05– Aug-05– Jul-05– M

ay-05– M

ar-05– Jan-05– Nov-04– Sep-04– Jul-04– Jun-04– Apr-04– Feb-04– Dec-03– Oct-03– Aug-03– Jul-03– M

ay-03– M

ar-03– Jan-03– Nov-02– Sep-02– Jul-02– M

ay-02– Apr-02– Feb-02– Dec-01– Oct-01– Aug-01– Jun-01– Apr-01– Feb-01– Jan-01– Nov-00

$75 –

$70 –

$65 –

$60 –

$55 –

$50 –

$45 –

$40 –

$35 –

– $12.00

– $10.00

– $8.00

– $6.00

– $4.00

– $2.00

– $0.00

Geac Stock Price (US$)

Geac

Ann

ual L

icen

se R

even

ues

(US$

M)

Licenses (US$M) Geac Stock Price (US$)

$59.78

$53.41

$49.38

$65.19

$71.04

MANU

ORCL

QADI

IBSB.ST

COGN

IFSB.ST

HUMC

HYSL

EPIC

BOBJ

SAP

SSAG

GEAC

LWSN

INTB.ST

100% –

80% –

60% –

40% –

20% –

0% –

-20% –

-40% –

-60% –

75%

37%26% 21% 19% 13%

3%5% 5%

-17% -18% -18% -28% -29% -39%


P. 10

Achieving Industry Recognition

Ventana Affirms Geac’s Product Development in Two Consecutive Reports

�

FINANCIAL CONDITION | STRATEGY | SHAREHOLDERS CUSTOMERS EMPLOYEES

�Ventana Research, a leading Performance Managementresearch and advisory services firm, conducted an assessmentof more than 30 vendors and 70 products for its 2005Performance Management Vendor and Product Scorecard.

�Ventana Research rated Geac's MPC product suite the highest in every category of “align,” “optimize,” and “understand” — the strategic business processes that help companies manage their business performance requirements. Geac was the overall winner in the Ventana Research Scorecard with a score of 97.3%.

Geac Progression on the Gartner Magic Quadrant

Magic Quadrant for CPM Suites, 2005 Geac 3-Year Movement

GeacSAS InstituteOutlookSoft

Cartesis

Longview Solutions

Lawson SoftwareApplix

CodaClarity Systems

CorVu

Oracle PeopleSoft EPM

Systems Union

ALG Software 2003

2004

2005Business Objects

SAP

Niche Players VisionariesVisionaries

Challengers Leaders

Niche Players

Challengers Leaders

Abili

ty to

Exe

cute

Abili

ty to

Exe

cute

Completeness of VisionCompleteness of Vision

Hyperion Solutions

Cognos

Oracle CPM

Geac Movement


P. 11

Innovation Index: Percentage of License Revenue from Newly Developed Products

�

FINANCIAL CONDITION | STRATEGY | SHAREHOLDERS CUSTOMERS EMPLOYEES

Even with decreases in Geac's development expenditures, Geac's new product introductions andenhancements resulted in ongoing innovation and product development across major product lines.

�In 4Q04, the average enterprise applicationlicense deal over $150K was $231K, and in 2Q06, Geac had increased that figure to $294K.

�Between 4Q04 and 3Q05, Geac closed anaverage of 23 enterprise application deals over$150K, but in the past three quarters has securedan average of 34.

In the above chart, the dark blue segment represents license sales for products developed within the previous year.

�GPM license revenue increased 21.6% �SmartStream license revenue increased 10.9% �RunTime license revenue increased 81.0% �Interealty license revenue increased 240.7% �Libraries license revenue increased 16.8% �Public Safety license revenue increased 9.1%

Incubating Creative Destruction — Business Highlights in FY05

$25 –

$20 –

$15 –

$10 –

$5 –

$0 – 3Q05 4Q05 1Q06 2Q06

US$

Milli

ons


P. 12

Creating Value for Employees

Employee Stock Purchase Plan Stock Options

Restricted Share Units

�

FINANCIAL CONDITION | STRATEGY | SHAREHOLDERS | CUSTOMERS EMPLOYEES

�In FY05, the Employee Stock Purchase Planachieved over 25% participation in North America.At the offer price of $11.10, this represents gains toemployees of $1.2 million, or 112.8%.

�In FY05, 1.38 million shares of Geac were granted to employees under the Restricted Share Unit plan. At the acquisition price, this represents $15.1 million.

�Stock options granted to employees will be worthUS$36.9 million at the sale price.

�Selected leaders of the future were sent to HarvardBusiness School, Northwestern University (KelloggGraduate School of Management), Wharton Schoolof the University of Pennsylvania, and Queen's School of Business (Kingston, ON) for executive educationcourses.

�In FY01, Geac generated US$142K in revenues per employee compared to $205K in FY05.

Revenue per Employee (US$)$220 –

$200 –

$180 –

$160 –

$140 –

$120 –

$100 – FY01 FY02 FY03 FY04 FY05

$2.5 –

$2.0 –

$1.5 –

$1.0 –

$0.5 –

$0 – Paid by

EmployeesReceived

$80 –

$70 –

$60 –

$50 –

$40 –

$30 –

$20 –

$10 –

$0 – Strike Price

EndingValue

$16 –

$14 –

$12 –

$10 –

$8 –

$6 –

$4 –

$2 –

$0 – Open Market

PurchasesReceived

US$

Milli

ons

US$

Milli

ons

US$

Milli

ons


www.geac.com


World HeadquartersGeac Computer Corporation Limited100 Fifth AvenueWaltham, MA 02451United StatesTel: 781.672.5900Fax: 781.672.5901

Registered Office and Financial Center11 Allstate Parkway, Suite 300Markham, Ontario L3R 9T8CanadaTel: 905.475.0525Fax: 905.475.3847

North American Headquarters66 Perimeter Center EastAtlanta, GA 30346United StatesTel: 404.239.2000Fax: 404.239.2404

Europe/Middle East/Africa HeadquartersNeedles HouseBirmingham RoadStudleyWarwickshire B80 7ASUnited KingdomTel: +44 (0) 1527.496.200Fax: +44 (0) 1527.496.300

Asia-Pacific HeadquartersLevel 10, 423 Pennant Hills RoadPennant Hills, NSW 1715AustraliaTel: +61.2.9875.9100Fax: +61.2.9875.9190


2001 - bedford funding · claymore systems group collier-jackson, inc. comp-tech incorporated...

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