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TRANSCRIPT
Investor Presentation
May 2011
DisclaimerCertain 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
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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, 2010 and Quarterly Report on Form 10-Q for the quarters ended September 30, 2010, December 31, 2010 and March 31, 2011. 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.
Copyright © 2010 Open Text Corporation. All rights reserved.2Copyright © 2011 Open Text Corporation. All rights reserved.
What is Enterprise Content Management?
� ECM describes a collection of software applications that help organizations to manage electronic content
Copyright © 2011 Open Text Corporation. All rights reserved. 3Copyright © 2010 Open Text Corporation. All rights reserved.
ECM Helps Organizations Deal with the Volume of Enterprise Content
Copyright © 2011 Open Text Corporation. All rights reserved. 4
ECM Allows Organizations to Unite Structured and Unstructured Information
Str
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Copyright © 2011 Open Text Corporation. All rights reserved. 5
Str
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ECM Enables Users to Make the Most ofSocial Media, Rich Media and Mobility
Copyright © 2011 Open Text Corporation. All rights reserved. 6
ECM Components
� Document Management
� Records Management
� Email Management
� eDiscovery
� Web Content Management
ECM - À La Carte
� Web Content Management
� Social Media
� Collaboration
� Enterprise Portals
� Digital Asset Management
� Business Process Management
� Case Management
� Contract Management
� Enterprise Archiving
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Ecosystem Strategy
8Copyright © 2011 Open Text Corporation. All rights reserved.
Who is OpenText?
� World's largest independent provider of Enterprise Content Management (ECM) software
� Key partnerships with SAP, MSFT and ORCL
� Focused on profitability
Copyright © 2011 Open Text Corporation. All rights reserved. 9Slide 9
Copyright © 2010 Open Text Corporation. All rights reserved.
Global ECM Market Share*
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*Gartner - Market Share Analysis: ECM Software, Worldwide, 2010, Tom Eid, Bianca Francesca Granetto
+12.8%↑
-1.7%↓
-1.3%↓
OpenText in the CloudA Social Intranet
Open Text Product Portfolio
User Experience Services
Horizontal ApplicationsContracts and Case Management,
Accounts Payable, eDiscovery
Vertical ApplicationsEnergy, Life Sciences,
Government, Healthcare
ECM Suite for ECM Suite for ECM Suite for
Social Media Document Management Capture and Imaging
Enterprise Library
Enterprise Process Services
Copyright © 2010 Open Text Corporation. All rights reserved.12Copyright © 2011 Open Text Corporation. All rights reserved.
Social Media
Collaboration
Web Content Management
Media Management
Document Management
Records Management
Rights Management
Enterprise Archiving
Capture and Imaging
OCR/ICR and Classifications
Business Process Management
Fax Management
OpenText Social Workspaces
OpenText Media Management
14Copyright © 2011 Open Text Corporation. All rights reserved.
OpenText Everywhere /
Copyright © 2011 Open Text Corporation. All rights reserved. 15
G20 Powered by Open Text
JUL, 2010
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Secure, Hosted, and Mobile Collaboration Site for Multilateral Governmental Collaboration
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NOV, 2010
JUL, 2010
Diverse Customer Base
Copyright © 2011 Open Text Corporation. All rights reserved. 17Slide 17
FY2011 Q3 Results
� Total revenue $263.0 million, up 23.6% (3Q11 vs.3Q10)
� License revenue $67.8 million, up 37.0% (3Q11 vs.3Q10)
� Adjusted EPS $0.90, up 28.6% (3Q11 vs.3Q10)*
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� Pre-tax adjusted operating margin 24.4%
� Operating cash flow $82.3 million
� Cash and cash equivalents $237.7 million
Copyright © 2011 Open Text Corporation. All rights reserved. 18
* See reconciliation of Non-GAAP measures to GAAP measures at the end of this presentation
Copyright © 2010 Open Text Corporation. All rights reserved.
**before taxes and interest expense
Business Process Management
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Q32011 Global Revenue Mix
9%
40%51%
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North America – 51% Europe – 40% Asia Pac/Other – 9%
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Copyright © 2010 Open Text Corporation. All rights reserved.20Copyright © 2011 Open Text Corporation. All rights reserved.
Revenue Mix & Margin Target Model
Revenue Type Fiscal 2011 Target Model
Nine Months Ended March 31, 2011
Product License 25-30% 25.3%
Product Maintenance 52-57% 54.8%
Professional Services 18-23% 19.9%
Overall Gross Margin 73-75% 73.7%
Development 14-16% 14.2%
Sales & Marketing 21-23% 21.9%
General & Admin 8-10% 8.4%
Depreciation 2% 2.1%
Pre-tax Adj. Ops Margin
25-30% 28.2%
21Copyright © 2011 Open Text Corporation. All rights reserved.
Thank YouThank You
22Copyright © 2011 Open Text Corporation. All rights reserved.
Reconciliation of Non GAAP Adjusted Operating Margin to GAAP Net Income*
(in ‘000s USD) 3Q10 3Q11
Non GAAP adjusted operating margin (27.2% and 24.4%, respectively)
$ 57,797 $ 64,055
Less:
Amortization 23,954 27,779
Share-based compensation expense 1,334 3,095
Special charges 6,083 4,437
Other expense (income), net 5,554 (2,905)
Interest expense, net 2,625 2,977
GAAP-based provision for (recovery of) income taxes
5,133 (7,158)
GAAP Net income for the period $ 13,114 $ 35,830
Copyright © 2010 Open Text Corporation. All rights reserved.
*Amounts may differ from those shown on the face of the financial statements due to non-material rounding adjustments.
For more details see our third quarter of Fiscal year 2011 earnings release, posted on our website under Investor Relations at www.opentext.com
23Copyright © 2011 Open Text Corporation. All rights reserved.
Reconciliation of Non GAAP-based Adjusted EPS to GAAP-based EPS (on a diluted basis)*
3Q10 3Q11
Non GAAP-based adjusted EPS $ 0.70 $ 0.90
Less:
Amortization 0.41 0.48
Share-based compensation expense 0.02 0.05
Copyright © 2011 Open Text Corporation. All rights reserved.
Share-based compensation expense 0.02 0.05
Special charges 0.11 0.08
Other expense (income), net 0.10 (0.05)
GAAP-based provision for (recovery of) income taxes
0.09 (0.12)
Tax on non GAAP-based adjusted net income
(0.26) (0.15)
GAAP-based EPS $ 0.23 $ 0.61
*Amounts may differ from those shown on the face of the financial statements due to non-material rounding adjustments
For more details see our third quarter of Fiscal year 2011 earnings release, posted on our website under Investor Relations at www.opentext.com
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