Q215 Lender Update December 12, 2014 1
Financial Update 2
Q2 FY15 Executive Summary Note With the change in our fiscal year end, we have recast prior period results to reflect the comparable three month period ended October 31, 2013 Q215 total pro forma revenue was $687.2M On a constant currency basis, Q215 total pro forma revenue was $699.3M, an increase of 3.6% from Q214 Increase driven by higher license fees and subscriptions Q215 pro forma software license fees and subscriptions revenue was $133.0M On a constant currency basis, Q215 pro forma software license fees and subscriptions revenue was $135.5M, an increase of 16.4% from Q214 We continue to have strong growth in both perpetual and SAAS bookings and revenues Q215 pro forma product update and support revenue was $373.3M On a constant currency basis, Q215 pro forma product update and support revenue was $378.5M, an increase of 2.4% from Q214 Retention rates continue to remain strong Q215 pro forma consulting services and other fees revenue was $180.9M On a constant currency basis, Q215 pro forma consulting services and other revenue was $185.3M, a decrease of 2.1% from Q214 Decrease in global consulting services revenue somewhat offset by other fees related to Inforum 2014 held in September Q215 Adjusted Pro Forma EBITDA was $195.1 (28.4% margin) On a constant currency basis, Q215 Adjusted Pro Forma EBITDA of $199.4M, a decrease of 5.9% from Q214 Drop in the performance of the consulting business was the primary contribution to the decrease in EBITDA Cash balance at the end of Q215 was $328.6M Collections and cash generation remain strong 3
Q215 v. Q214 P&L: GAAP Actual Results (1) Currency-adjusted Results $ in millions Actual Actual % Currency Adjusted Actual % Q215 Q214 Variance Variance Impact (2) Q215 Q214 Variance Variance Revenue (recast) (recast) Software license fees and subscriptions $ 132.8 $ 115.5 $ 17.3 15.0% $ (2.5) $ 135.3 $ 115.5 $ 19.8 17.1% Product updates and support fees 372.0 369.1 2.9 0.8% (5.2) 377.2 369.1 8.1 2.2% Software revenues 504.8 484.6 20.2 4.2% (7.7) 512.5 484.6 27.9 5.8% Consulting services and other fees 180.8 188.6 (7.8) -4.1% (4.4) 185.2 188.6 (3.4) -1.8% Total revenues 685.6 673.2 12.4 1.8% (12.1) 697.7 673.2 24.5 3.6% Expenses Cost of software license fees and subscriptions 29.0 19.3 9.7 50.3% (0.3) 29.3 19.3 10.0 51.8% Cost of product updates and support fees 65.5 62.7 2.8 4.5% (0.9) 66.4 62.7 3.7 5.9% Cost of consulting services and other fees 138.5 145.0 (6.5) -4.5% (2.8) 141.3 145.0 (3.7) -2.6% Sales and marketing costs 119.6 104.8 14.8 14.1% (1.4) 121.0 104.8 16.2 15.5% Research and development 104.3 92.8 11.5 12.4% (1.5) 105.8 92.8 13.0 14.0% General and administrative 46.1 39.4 6.7 17.0% (0.9) 47.0 39.4 7.6 19.3% Amortization of intangible assets and depreciation 61.3 64.8 (3.5) -5.4% (0.8) 62.1 64.8 (2.7) -4.2% Restructuring costs 3.8 0.9 2.9 322.2% (0.1) 3.9 0.9 3.0 333.3% Acquisition-related and other costs (1.4) (0.7) (0.7) 100.0% - (1.4) (0.7) (0.7) 100.0% Total operating expenses 566.7 529.0 37.7 7.1% (8.7) 575.4 529.0 46.4 8.8% Income from operations 118.9 144.2 (25.3) -17.5% (3.4) 122.3 144.2 (21.9) -15.2% Interest expense, net 88.0 99.0 (11.0) -11.1% - 88.0 99.0 (11.0) -11.1% Other (income) expense, net (2.0) (32.4) 30.4-93.8% (0.4) (1.6) (32.4) 30.8-95.1% Income before income taxes 32.9 77.6 (44.7) -57.6% (3.0) 35.9 77.6 (41.7) -53.7% Income tax provision 19.8 12.6 7.2 57.1% (0.1) 19.9 12.6 7.3 57.9% Net income $ 13.1 $ 65.0 $ (51.9) -79.8% $ (2.9) $ 16.0 $ 65.0 $ (49.0) -75.4% (1) Actual Results for Q215 reflect the three months ended October 31, 2014 - Actual Results for Q214 have been recast to reflect the corresponding three months ended October 31, 2014 (2) Currency impact is computed by converting actual results using Q214 exchange rates 4
Q215 v. Q214 P&L: Pro Forma Pro Forma Results (1)(2) Currency-adjusted Results $ in millions Actual Actual % Currency Adjusted Actual % Q215 (4) Q214 (4) Variance Variance Impact (3) Q215 Q214 Variance Variance Revenue (recast) (recast) Software license fees and subscriptions $ 133.0 $ 116.4 $ 16.6 14.3% $ (2.5) $ 135.5 $ 116.4 $ 19.1 16.4% Product updates and support fees 373.3 369.6 3.7 1.0% (5.2) 378.5 369.6 8.9 2.4% Software revenues 506.3 486.0 20.3 4.2% (7.7) 514.0 486.0 28.0 5.8% Consulting services and other fees 180.9 189.2 (8.3) -4.4% (4.4) 185.3 189.2 (3.9) -2.1% Total revenues 687.2 675.2 12.0 1.8% (12.1) 699.3 675.2 24.1 3.6% Expenses Cost of software license fees and subscriptions 29.0 19.3 9.7 50.3% (0.3) 29.3 19.3 10.0 51.8% Cost of product updates and support fees 65.5 62.7 2.8 4.5% (0.9) 66.4 62.7 3.7 5.9% Cost of consulting services and other fees 138.5 145.2 (6.7) -4.6% (2.8) 141.3 145.2 (3.9) -2.7% Sales and marketing costs 119.6 104.8 14.8 14.1% (1.4) 121.0 104.8 16.2 15.5% Research and development 104.3 92.8 11.5 12.4% (1.5) 105.8 92.8 13.0 14.0% General and administrative 46.1 39.4 6.7 17.0% (0.9) 47.0 39.4 7.6 19.3% Amortization of intangible assets and depreciation 61.3 64.8 (3.5) -5.4% (0.8) 62.1 64.8 (2.7) -4.2% Restructuring costs 3.8 0.9 2.9 322.2% (0.1) 3.9 0.9 3.0 333.3% Acquisition related and other costs (1.4) (0.7) (0.7) 100.0% - (1.4) (0.7) (0.7) 100.0% Total operating expenses 566.7 529.2 37.5 7.1% (8.7) 575.4 529.2 46.2 8.7% Income from operations 120.5 146.0 (25.5) -17.5% (3.4) 123.9 146.0 (22.1) -15.1% Interest expense, net 88.0 99.0 (11.0) -11.1% - 88.0 99.0 (11.0) -11.1% Other (income) expense, net (2.0) (32.4) 30.4-93.8% (0.4) (1.6) (32.4) 30.8-95.1% Income before income taxes 34.5 79.4 (44.9) -56.5% (3.0) 37.5 79.4 (41.9) -52.8% Income tax provision 19.8 12.6 7.2 57.1% (0.1) 19.9 12.6 7.3 57.9% Net income $ 14.7 $ 66.8 $ (52.1) -78.0% $ (2.9) $ 17.6 $ 66.8 $ (49.2) #DIV/0! -73.7% Add backs 180.4 145.2 35.2 24.2% (1.4) 181.8 145.2 36.6 25.2% Adjusted EBITDA $ 195.1 $ 212.0 $ (16.9) -8.0% $ (4.3) $ 199.4 $ 212.0 $ (12.6) -5.9% Adjusted EBITDA margin 28.4% 31.4% 28.5% 31.4% (1) Pro Forma Results contain reversal of acquisition-related adjustments (2) Pro Forma Results for Q215 reflect the three months ended October 31, 2014 - Pro Forma Results for Q214 have been recast to reflect the corresponding three months ended October 31, 2013 (3) Currency impact is computed by converting actual results using Q214 exchange rates (4) Q215 and Q214 results include equity compensation expense by category as follows: Cost of software license fees and subscriptions $ 0.2 $ - Cost of product updates and support fees 0.2 - Cost of consulting services and other fees 0.3 - Sales and marketing 1.7 1.4 Research and development 1.1 1.2 General and administrative 2.3 0.6 Equity-based compensation $ 5.8 $ 3.2 5
Q215 v. Q214 EBITDA: Pro Forma Pro Forma Results (1) Currency-adjusted Results $ in millions Actual Actual % Currency Adjusted Actual % Q215 Q214 Variance Variance Impact (2) Q215 Q214 Variance Variance (recast) (recast) Net income $ 14.7 $ 66.8 $ (52.1) -78.0% $ (2.9) $ 17.6 $ 66.8 $ (49.2) -73.7% Reconciliation of net income to adjusted Pro Forma EBITDA Net Interest (3) 88.3 99.4 (11.1) -11.2% - 88.3 99.4 (11.1) -11.2% Income tax provision 19.8 12.6 7.2 57.1% (0.1) 19.9 12.6 7.3 57.9% Depreciation and amortization 61.3 64.8 (3.5) -5.4% (0.8) 62.1 64.8 (2.7) -4.2% FX (gains) losses (2.0) (32.2) 30.2-93.8% (0.4) (1.6) (32.2) 30.6-95.0% Pro Forma EBITDA 182.1 211.4 (29.3) -13.9% (4.2) 186.3 211.4 (25.1) -11.9% Equity-based compensation 5.8 3.2 2.6 81.3% - 5.8 3.2 2.6 81.3% Acquisition transaction and integration costs (1.4) (0.7) (0.7) 100.0% - (1.4) (0.7) (0.7) 100.0% Non-recurring, extraordinary, exceptional, unusual (gains) losses 2.7 (5.3) 8.0 nm - 2.7 (5.3) 8.0 nm Restructuring 3.8 0.9 2.9 322.2% (0.1) 3.9 0.9 3.0 333.3% Other non-operating expenses 2.0 2.0-0.0% - 2.0 2.0-0.0% Acquisition cost savings (4) 0.1 0.5 (0.4) -80.0% - 0.1 0.5 (0.4) -80.0% Adjusted Pro Forma EBITDA $ 195.1 $ 212.0 $ (16.9) -8.0% $ (4.3) $ 199.4 $ 212.0 $ (12.6) -5.9% (1) Pro Forma Results for Q215 reflect the three months ended October 31, 2014 - Pro Forma Results for Q214 have been recast to reflect the corresponding three months ended October 31, 2013 (2) Currency impact is computed by converting actual results using Q214 exchange rates (3) Includes fees associated with debt as defined by Infor Note's Indentures (4) Anticipated cost savings from fiscal 2013 and 2014 acquisitions yet to be realized 6
YTD15 v. YTD14 P&L: GAAP Actual Results (1) Currency-adjusted Results $ in millions Actual Actual % Currency Adjusted Actual % YTD FY15 YTD FY14 Variance Variance Impact (2) YTD FY15 YTD FY14 Variance Variance Revenue Software license fees and subscriptions $ 324.8 $ 272.7 $ 52.1 19.1% $ (2.1) $ 326.9 $ 272.7 $ 54.2 19.9% Product updates and support fees 745.7 735.5 10.2 1.4% (1.3) 747.0 735.5 11.5 1.6% Software revenues 1,070.5 1,008.2 62.3 6.2% (3.4) 1,073.9 1,008.2 65.7 6.5% Consulting services and other fees 368.3 376.3 (8.0) -2.1% (2.2) 370.5 376.3 (5.8) -1.5% Total revenues 1,438.8 1,384.5 54.3 3.9% (5.6) 1,444.4 1,384.5 59.9 4.3% Expenses Cost of software license fees and subscriptions 62.6 47.5 15.1 31.8% (0.3) 62.9 47.5 15.4 32.4% Cost of product updates and support fees 132.3 126.0 6.3 5.0% (0.1) 132.4 126.0 6.4 5.1% Cost of consulting services and other fees 285.0 294.1 (9.1) -3.1% (0.6) 285.6 294.1 (8.5) -2.9% Sales and marketing costs 247.3 223.6 23.7 10.6% (0.2) 247.5 223.6 23.9 10.7% Research and development 206.3 188.2 18.1 9.6% (0.9) 207.2 188.2 19.0 10.1% General and administrative 106.5 89.3 17.2 19.3% 0.0 106.5 89.3 17.2 19.3% Amortization of intangible assets and depreciation 126.4 129.0 (2.6) -2.0% (0.2) 126.6 129.0 (2.4) -1.9% Restructuring costs 11.3 5.0 6.3 126.0% 0.1 11.2 5.0 6.2 124.0% Acquisition-related and other costs (0.7) 9.1 (9.8) nm - (0.7) 9.1 (9.8) nm Total operating expenses 1,177.0 1,111.8 65.2 5.9% (2.2) 1,179.2 1,111.8 67.4 6.1% Income from operations 261.8 272.7 (10.9) -4.0% (3.4) 265.2 272.7 (7.5) -2.8% Interest expense, net 176.7 199.2 (22.5) -11.3% - 176.7 199.2 (22.5) -11.3% Loss on extinguishment of debt - 0.7 (0.7) -100.0% - - 0.7 (0.7) -100.0% Other (income) expense, net (34.1) (19.8) (14.3) 72.2% (2.1) (32.0) (19.8) (12.2) 61.6% Income (loss) before income taxes 119.2 92.6 26.6 28.7% (1.3) 120.5 92.6 27.9 30.1% Income tax provision 32.6 16.0 16.6 103.8% (1.5) 34.1 16.0 18.1 113.1% Net income (loss) $ 86.6 $ 76.6 $ 10.0 13.1% $ 0.2 $ 86.4 $ 76.6 $ 9.8 12.8% (1) Actual Results for YTD FY15 reflect the six months ended October 31, 2014 - Actual Results for YTD FY14 have been recast to reflect the corresponding six months ended October 31, 2014 (2) Currency impact is computed by converting actual results using FY14 exchange rates 7
YTD15 v. YTD14 P&L: Pro Forma Pro Forma Results (1)(2) Currency-adjusted Results $ in millions Actual Actual % Currency Adjusted Actual % YTD FY15 (4) YTD FY14 (4) Variance Variance Impact (3) YTD FY15 YTD FY14 Variance Variance Revenue Software license fees and subscriptions $ 325.6 $ 276.0 $ 49.6 18.0% $ (2.1) $ 327.7 $ 276.0 $ 51.7 18.7% Product updates and support fees 747.1 736.4 10.7 1.5% (1.3) 748.4 736.4 12.0 1.6% Software revenues 1,072.7 1,012.4 60.3 6.0% (3.4) 1,076.1 1,012.4 63.7 6.3% Consulting services and other fees 368.6 377.7 (9.1) -2.4% (2.2) 370.8 377.7 (6.9) -1.8% Total revenues 1,441.3 1,390.1 51.2 3.7% (5.6) 1,446.9 1,390.1 56.8 4.1% Expenses 62.6 47.5 15.1 31.8% (0.3) 62.9 47.5 15.4 32.4% Cost of product updates and support fees 132.3 126.0 6.3 5.0% (0.1) 132.4 126.0 6.4 5.1% Cost of consulting services and other fees 285.0 294.7 (9.7) -3.3% (0.6) 285.6 294.7 (9.1) -3.1% Sales and marketing costs 247.3 223.6 23.7 10.6% (0.2) 247.5 223.6 23.9 10.7% Research and development 206.3 188.2 18.1 9.6% (0.9) 207.2 188.2 19.0 10.1% General and administrative 106.5 89.3 17.2 19.3% 0.0 106.5 89.3 17.2 19.3% Amortization of intangible assets and depreciation 126.4 129.0 (2.6) -2.0% (0.2) 126.6 129.0 (2.4) -1.9% Restructuring costs 11.3 5.0 6.3 126.0% 0.1 11.2 5.0 6.2 124.0% Acquisition-related and other costs (0.7) 9.1 (9.8) nm - (0.7) 9.1 (9.8) nm Total operating expenses 1,177.0 1,112.4 64.6 5.8% (2.2) 1,179.2 1,112.4 66.8 6.0% Income from operations 264.3 277.7 (13.4) -4.8% (3.4) 267.7 277.7 (10.0) -3.6% Interest expense, net 176.7 199.2 (22.5) -11.3% - 176.7 199.2 (22.5) -11.3% Loss on extinguishment of debt - 0.7 (0.7) -100.0% - - 0.7 (0.7) -100.0% Other (income) expense, net (34.1) (19.8) (14.3) 72.2% (2.1) (32.0) (19.8) (12.2) 61.6% Income before income taxes 121.7 97.6 24.1 24.7% (1.3) 123.0 97.6 25.4 26.0% Provision for income taxes 32.6 16.0 16.6 103.8% (1.5) 34.1 16.0 18.1 113.1% Net income $ 89.1 $ 81.6 $ 7.5 9.2% $ 0.2 $ 88.9 $ 81.6 $ 7.3 #DIV/0! 8.9% Add backs 344.0 349.3 (5.3) -1.5% (3.7) 347.7 349.3 (1.6) -0.5% Adjusted EBITDA $ 433.1 $ 430.9 $ 2.2 0.5% $ (3.5) $ 436.6 $ 430.9 $ 5.7 1.3% Adjusted EBITDA margin 30.0% 31.0% 30.2% 31.0% (1) Pro Forma Results contain reversal of acquisition-related adjustments (2) Pro Forma Results for YTD FY15 reflect the six months ended October 31, 2014 - Pro Forma Results for YTD FY14 have been recast to reflect the corresponding six months ended October 31, 2013 (3) Currency impact is computed by converting actual results using FY14 exchange rates (4) YTD FY15 and YTD FY14 results include equity compensation expense by category as follows: Cost of software license fees and subscriptions $ 0.2 Cost of product updates and support fees 0.6 - Cost of consulting services and other fees 0.3 - Sales and marketing costs 3.5 3.6 Research and development 2.6 3.2 General and administrative 5.8 1.2 Equity-based compensation $ 13.0 $ 8.0 8
YTD15 v. YTD14 EBITDA: Pro Forma Pro Forma Results (1) Currency-adjusted Results $ in millions Actual Actual % Currency Adjusted Actual % YTD FY15 YTD FY14 Variance Variance Impact (2) YTD FY15 YTD FY14 Net income $ 89.1 $ 81.6 $ 7.5 9.2% $ 0.2 $ 88.9 $ 81.6 $ 7.3 8.9% Reconciliation of net income to adjusted Pro Forma EBITDA Variance Net Interest (3) 177.3 199.9 (22.6) -11.3% - 177.3 199.9 (22.6) -11.3% Income tax provision 32.6 16.0 16.6 103.8% (1.5) 34.1 16.0 18.1 113.1% Depreciation and amortization 126.4 129.0 (2.6) -2.0% (0.2) 126.6 129.0 (2.4) -1.9% Loss on extinguishment of debt - 0.7 (0.7) -100.0% - - 0.7 (0.7) -100.0% FX (gains) losses (34.0) (19.7) (14.3) 72.6% (2.1) (31.9) (19.7) (12.2) 61.9% Pro Forma EBITDA 391.4 407.5 (16.1) -4.0% (3.6) 395.0 407.5 (12.5) -3.1% Equity-based compensation 13.0 8.0 5.0 62.5% - 13.0 8.0 5.0 62.5% Acquisition transaction and integration costs (0.7) 9.1 (9.8) nm - (0.7) 9.1 (9.8) nm Non-recurring, extraordinary, exceptional, unusual (gains) losses 13.9 (3.3) 17.2 nm - 13.9 (3.3) 17.2 nm Restructuring 11.3 5.0 6.3 126.0% 0.1 11.2 5.0 6.2 124.0% Other non-operating expenses 4.1 3.7 0.4 10.8% - 4.1 3.7 0.4 10.8% Acquisition cost savings (4) 0.1 0.9 (0.8) -88.9% - 0.1 0.9 (0.8) -88.9% Adjusted Pro Forma EBITDA $ 433.1 $ 430.9 $ 2.2 0.5% $ (3.5) $ 436.6 $ 430.9 $ 5.7 1.3% (1) Pro Forma Results for YTD FY15 reflect the six months ended October 31, 2014 - Pro Forma Results for YTD FY14 have been recast to reflect the corresponding six months ended October 31, 2013 (2) Currency impact is computed by converting actual results using FY14 exchange rates (3) Includes fees associated with debt as defined by Infor Note's Indentures (4) Anticipated cost savings from fiscal 2013 and 2014 acquisitions yet to be realized Variance 9
Quarterly Overview: LTM Results $ in millions Quarter Ended February 28, 2014 Quarter Ended May 31, 2014 (1) Quarter Ended July 31, 2014 (1) Quarter Ended October 31, 2014 LTM Ended October 31, 2014 (1)(2) Revenues Software license fees and subscriptions $ 129.7 $ 178.9 $ 192.0 $ 132.8 $ 633.4 Product updates and support 362.4 371.1 373.7 372.0 1,479.2 Software revenues 492.1 550.0 565.7 504.8 2,112.6 Consulting services and other fees 180.6 190.3 187.5 180.8 739.2 Total revenues 672.7 740.3 753.2 685.6 2,851.8 Expenses Cost of software license fees and subscriptions 26.6 31.2 33.6 29.0 120.4 Cost of product updates and support 67.2 68.3 66.8 65.5 267.8 Cost of consulting services and other 144.6 153.3 146.5 138.5 582.9 Sales and marketing 114.3 129.8 127.7 119.6 491.4 Research, development and updates 100.6 105.7 102.0 104.3 412.6 General and administrative 47.2 59.0 60.4 46.1 212.7 Depreciation and amortization of intangible assets 67.3 68.5 65.1 61.3 262.2 Restructuring costs 3.3 9.7 7.5 3.8 24.3 Acquisition related and other costs 11.1 6.3 0.7 (1.4) 16.7 Total operating expenses 582.2 631.8 610.3 566.7 2,391.0 Income from operations 90.5 108.5 142.9 118.9 460.8 Interest expense, net 91.8 88.9 88.7 88.0 357.4 Loss on extinguishment of debt 4.5 - - - 4.5 Other (income) expense, net (1.7) (16.7) (32.1) (2.0) (52.5) Income (loss) before income taxes (4.1) 36.3 86.3 32.9 151.4 Income tax provision (benefit) (5.4) 2.0 12.8 19.8 29.2 Net income $ 1.3 $ 34.3 $ 73.5 $ 13.1 $ 122.2 (1) Results of May 2014 are included in both the quarters ended May 31, 2014, and July 31, 2014, based on applicable definitions in Infor Notes' Indentures (2) Presented in compliance with Infor Notes' Indentures including pro forma results which contain reversal of acquisition-related adjustments 10
Quarterly Overview: LTM Results $ in millions Quarter Ended February 28, 2014 Quarter Ended May 31, 2014 (1) Quarter Ended July 31, 2014 (1) Quarter Ended October 31, 2014 LTM Ended October 31, 2014 (1)(2)(3) Net income $ 1.3 $ $ 34.3 $ 73.5 $ 13.1 $ 122.2 Reconciliation of net income to Adjusted EBITDA: Net Interest (4) 92.1 89.2 89.0 88.3 358.6 Income tax provision (benefit) (5.4) 2.0 12.8 19.8 29.2 Depreciation and amortization 67.3 68.5 65.1 61.3 262.2 Purchase accounting impact - License fees 1.9 1.2 0.6 0.2 3.9 Purchase accounting impact - Product updates and support fees 0.2 0.1 0.1 1.3 1.7 Purchase accounting impact - Consulting 0.4 0.3 0.2 0.1 1.0 Equity-based compensation 4.1 18.8 7.2 5.8 35.9 Acquisition transaction and integration costs 11.1 6.3 0.7 (1.4) 16.7 Non-recurring, extraordinary, exceptional, unusual (gains) losses 1.9 3.2 11.2 2.7 19.0 Restructuring 3.3 9.7 7.5 3.8 24.3 Other non-operating expenses 2.1 2.1 2.1 2.0 8.3 FX (gains) losses (1.8) (16.7) (32.0) (2.0) (52.5) Loss on extinguishment of debt 4.5 - - - 4.5 Acquisition cost savings (5) 0.4 0.1-0.1 0.6 Adjusted EBITDA $ 183.4 $ 219.1 $ 238.0 $ 195.1 $ 835.6 Adjusted EBITDA margin 27.3% 29.6% 31.6% 28.5% 29.3% (1) Results of May 2014 are included in both the quarters ended May 31, 2014, and July 31, 2014, based on applicable definitions in Infor Notes' Indentures (2) Presented in compliance with Infor Notes' Indentures including pro forma results which contain reversal of acquisition-related adjustments (3) Consolidated LTM EBITDA as of October 31, 2014, pursuant to the provisions of Infor's Credit Agreement was approximately $836.7 (4) Includes fees associated with debt as defined by Infor Note's Indentures (5) Anticipated cost savings from fiscal 2013 and 2014 acquisitions yet to be realized 11
Balance Sheet: GAAP October 31, May 31, $ in millions 2014 2014 Assets Current assets Cash and cash equivalents $ 328.6 $ 575.3 Accounts receivable, net 322.0 404.2 Other current assets 196.8 202.8 Total current assets 847.4 1,182.3 Property and equipment, net of accumulated depreciation 82.0 82.8 Intangible assets, net of accumulated amortization 5,054.8 5,267.9 Other long-term assets 205.1 245.1 Total assets $ 6,189.3 $ 6,778.1 Liabilities and Stockholders' Deficit Current liabilities Accounts payable and accrued liabilities 397.5 481.2 Deferred revenue 766.4 975.3 Current portion of long-term debt 1.2 31.7 Total current liabilities 1,165.1 1,488.2 Long-term debt 5,235.7 5,339.6 Other long-term liabilities 364.8 410.3 Total liabilities 6,765.6 7,238.1 Stockholders' deficit (576.3) (460.0) Total liabilities and stockholders' deficit $ 6,189.3 $ 6,778.1 12
Statement of Cash Flows: GAAP $ in millions Six Months Ended (1) October 31, 2014 October 31, 2013 Cash flows from operating activities (recast) Net income $ 86.6 $ 76.6 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 126.4 129.0 Non cash items and change in working capital (152.5) (105.0) Net cash provided by operating activities 60.5 100.6 Cash flows from investing activities Acquisition, net of cash acquired (30.1) (23.7) Purchases of property, equipment and software (20.3) (13.8) Other investing activities 19.0 (20.2) Net cash used in investing activities (31.4) (57.7) Cash flows from financing activities Deferred financing fees and other financing activities (8.5) (11.9) Proceeds from issuance of debt - 937.7 Loans to stockholders (0.2) (1.5) Payment of debt obligations (73.0) (943.8) Dividends paid (42.7) - Net cash used in financing activities (124.4) (19.5) Net (decrease) Increase in cash and cash equivalents (95.3) 23.4 Effect of exchange rate on cash and cash equivalents (23.2) 3.1 Net (decrease) increase in cash and cash equivalents (118.5) 26.5 Cash and cash equivalents Beginning of the period 447.1 337.9 End of the period $ 328.6 $ 364.4 (1) Cash flows for YTD FY15 reflect the six months ended October 31, 2014 - Cash flows for YTD FY14 have been recast to reflect the corresponding six months ended October 31, 2013 13
Debt Summary Outstanding USD Outstanding Tranche Currency Pricing (1) October 31, 2014 October 31, 2014 Maturity First Lien - Tranche B-5 Term Loan USD AER (2) + 2.75 margin $ 2,537.3 $ 2,485.8 6/3/2020 First Lien - Tranche B-3 Term Loan USD AER (2) + 2.75 margin $ 469.1 $ 469.1 6/3/2020 First Lien - Euro-B Term Loan EUR (3) AER (2) + 3.0 margin 342.2 $ 428.8 6/3/2020 Infor Senior Notes USD 9.375% $ 1,015.0 $ 1,015.0 4/1/2019 Infor Senior Notes EUR (3) 10.000% 250.0 $ 313.2 4/1/2019 Infor Senior Notes USD 11.500% $ 560.0 $ 560.0 7/15/2018 Tranche B-5 Term Loan Discount USD $ (31.9) $ (31.9) Infor Senior Notes Discount USD $ (3.1) $ (3.1) Total Debt $ 5,236.9 Less: Cash Balance $ (328.6) Net Debt $ 4,908.3 LTM EBITDA (4) $ 835.6 LTM EBITDA to Total Debt (5) 6.3 X LTM EBITDA to Net Debt (5) 5.9 X LTM EBITDA to Senior Debt 4.0 X (1) Reflects current pricing based on January 2, 2014, Credit Agreement, Fourth Amendment (2) Adjusted Eurocurrency Rate (AER) - The AER floor is 1.00% per annum (3) Euro exchange rate as of October 31, 2014, equaled 1.253 (4) LTM EBITDA includes the results of May 2014 in both the quarters ended May 31, 2014, and July 31, 2014, based on applicable definitions in Infor Notes' Indentures (5) Ratio calculations based on gross debt of $5,271.9 excluding discounts of $35.0 14
Operating Metrics 15
Revenue Metrics (1) By region (Q215) By region (FY14) 32% 8% 60% Americas EMEA APAC 34% 8% 58% Americas EMEA APAC By type (Q215) By type (FY14) 26% 20% License 27% 20% License Maintenance Maintenance Services Services 54% 53% (1) Revenue Metrics are based on Pro Forma Revenue using actual rates 16
Operational Metrics (1) Direct/Channel mix license bookings (2) Customer mix license bookings (2) 100% 80% 22% 23% 25% 25% 22% 100% 80% 24% 25% 21% 20% 21% 60% 60% 40% 78% 77% 75% 75% 78% 40% 81% 75% 79% 80% 79% 20% 20% 0% Q214 Q314 Q414 Q115 Q215 0% Q214 Q314 Q414 Q115 Q215 Top = channel Bottom = direct Top = new customers, Bottom = existing customers 90% Professional services utilization 75% 60% 45% 62% 57% 61% 61% 61% 30% 15% 0% Q214 Q314 Q414 Q115 Q215 (1) Operational Metrics reflected above for all prior periods of FY14 relate to the previously reported fiscal periods and have not been recast for our new fiscal year end (2) The Direct/Channel mix and Customer mix license bookings reflected above represent perpetual license value and annual contract value for SaaS transactions 17
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