Open text corporation investment pitch Analysis reflects information available at time of investment pitch (October 9, 2014) Closing price of OTEX on October 9, 2014 was $56.31

1. Open Text Corporation (OTEX)
Technology Sector
Saken Wang
October 9, 2014

2. Company Background
 Provide software products and services
 Enterprise Information Management
 Business Process/Customer Experience
 Information Exchange
Open Text Corporation || OTEX
 Big Content
 Big data primarily generated by machines
 Big content generated by people
 Integrate, structure, manage big content

3. Growth
 Technology and service industry has seen most
demand
 48 acquisitions over past 20 years
 GXS acquisition lead to 255% increase in cloud services
business revenue
 Emerging markets in Southeast Asia, eastern Europe
and Middle East
 Mobility, pricing, reliability
Open Text Corporation || OTEX

4. Looking forward
Open Text Corporation || OTEX
 Cloud Computing
 Global business spending for cloud infrastructure and
services predicted to reach $174.2 billion by end of this
year
 By 2017, $235.1 billion, triple of the spending in 2011
 Demand for Cloud Service
 67% of CIOs from 70 countries and 20 industries are
actively looking into cloud technology to improve
customer engagement

5. Valuation
 Market Cap: 6.88 Billion
 P/E: 14.67 vs. 27.52 (Industry)
 Rev Growth (3 Yr Avg): 16.3%
 Operating Margin: 20.42% vs 16.45% (Industry)
 EBITDA Margin: 31.88% vs 23.44% (Industry)
Open Text Corporation || OTEX
 Dividend: 1.25%
 Plus for a medium sized company

6. Risks
 Debt to Equity: 0.8 vs. 0.4 (Industry)
Open Text Corporation || OTEX
 Competitors
 IBM, Oracle, Microsoft
 Concentrated customer segment

7. Investment Thesis
 Trading at a discount
 Performing better than industry
 Unique market niche
 Heavily demanded industry
 Potential in emerging markets
 Cloud technology is like “property”
Open Text Corporation || OTEX