Q213 Lender Update January 14, 2013 1
Financial Update 2
Q2 FY13 Executive Summary Q213 total pro forma revenue was $688.0M On a constant currency basis, Q213 total pro forma revenue was $695.5M, up 1.2% Demand environment remains challenging, particularly in APAC and EMEA Q213 pro forma license revenue was $124.1M On a constant currency basis, Q213 pro forma license revenue of $125.2M, an increase of 0.2% We saw strength in the Americas, manufacturing, hospitality, and asset management Q213 pro forma product update and support revenue was $363.5M On a constant currency basis, Q213 pro forma product update and support revenue of $366.5M was 1.4% above Q212 We continue to see strong retention and growth in our maintenance business Q213 pro forma consulting services and other revenue was $200.4M On a constant currency basis, Q213 pro forma consulting services and other revenue of $203.8M was 1.4% above Q212 We have returned to growth after two challenging quarters Q213 Adjusted Pro Forma EBITDA was $209.8 (30.5% margin) On a constant currency basis, Q213 Adjusted Pro Forma EBITDA of $210.5M was 0.6% above Q212 We continue to deliver solid margins with minimal addbacks Cash balance at the end of Q213 was $238.5M Collections and cash generation remain strong 3
Q213 v. Q212 P&L: GAAP Actual Results Currency-adjusted Results $ in millions Actual Actual % Currency Adjusted Actual % Q213 (1) Q212 Variance Variance Impact (1) Q213 Q212 Variance Variance Revenue License fees $ 120.6 $ 119.5 $ 1.1 0.9% $ (1.2) $ 121.8 $ 119.5 $ 2.3 1.9% Product updates and support fees 363.0 321.1 41.9 13.0% (2.9) 365.9 321.1 44.8 14.0% Software revenues 483.6 440.6 43.0 9.8% (4.1) 487.7 440.6 47.1 10.7% Consulting services and other fees 198.9 200.3 (1.4) -0.7% (3.4) 202.3 200.3 2.0 1.0% Total revenues 682.5 640.9 41.6 6.5% (7.5) 690.0 640.9 49.1 7.7% Expenses Cost of license fees 20.2 22.2 (2.0) -9.0% (0.2) 20.4 22.2 (1.8) -8.1% Cost of product updates and support fees 63.6 66.2 (2.6) -3.9% (0.9) 64.5 66.2 (1.7) -2.6% Cost of consulting services and other fees 150.0 153.3 (3.3) -2.2% (2.9) 152.9 153.3 (0.4) -0.3% Sales and marketing costs 114.1 107.3 6.8 6.3% (1.4) 115.5 107.3 8.2 7.6% Research and development 85.1 83.3 1.8 2.2% (1.0) 86.1 83.3 2.8 3.4% General and administrative 50.7 68.8 (18.1) -26.3% (0.3) 51.0 68.8 (17.8) -25.9% Amortization of intangible assets and depreciation 68.8 85.9 (17.1) -19.9% (0.3) 69.1 85.9 (16.8) -19.6% Restructuring costs 4.1 11.5 (7.4) -64.3% (0.1) 4.2 11.5 (7.3) -63.5% Acquisition related and other costs 12.7 5.6 7.1 126.8% - 12.7 5.6 7.1 126.8% Total operating expenses 569.3 604.1 (34.8) -5.8% (7.1) 576.4 604.1 (27.7) -4.6% Income from operations 113.2 36.8 76.4 207.6% (0.4) 113.6 36.8 76.8 208.7% Interest expense, net 103.4 119.7 (16.3) -13.6% - 103.4 119.7 (16.3) -13.6% Loss on extinguishment of debt 1.8-1.8 nm - 1.8-1.8 nm Other (income) expense, net 25.0 (45.9) 70.9 nm 0.6 24.4 (45.9) 70.3 nm Loss before income taxes (17.0) (37.0) 20.0-54.1% (1.0) (16.0) (37.0) 21.0-56.8% Provision (benefit) from income taxes 5.7 10.9 (5.2) nm - 5.7 10.9 (5.2) nm Net loss $ (22.7) $ (47.9) $ 25.2-52.6% $ (1.0) $ (21.7) $ (47.9) $ 26.2-54.7% (1) Currency impact is computed by converting actual results using Q212 exchange rates 4
Q213 v. Q212 P&L: Pro Forma Pro Forma Results (1) Currency-adjusted Results $ in millions % Currency Adjusted % Q213 (3) Q212 Variance Variance Impact (2) Q213 Q212 Variance Variance Revenue License fees $ 124.1 $ 124.9 $ (0.8) -0.6% $ (1.1) $ 125.2 $ 124.9 $ 0.3 0.2% Product updates and support fees 363.5 361.5 2.0 0.6% (3.0) 366.5 361.5 5.0 1.4% Software revenues 487.6 486.4 1.2 0.2% (4.1) 491.7 486.4 5.3 1.1% Consulting services and other fees 200.4 201.0 (0.6) -0.3% (3.4) 203.8 201.0 2.8 1.4% Total revenues 688.0 687.4 0.6 0.1% (7.5) 695.5 687.4 8.1 1.2% Expenses Cost of license fees 20.2 22.2 (2.0) -9.0% (0.2) 20.4 22.2 (1.8) -8.1% Cost of product updates and support fees 63.6 66.2 (2.6) -3.9% (0.9) 64.5 66.2 (1.7) -2.6% Cost of consulting services and other fees 150.4 154.3 (3.9) -2.5% (3.0) 153.4 154.3 (0.9) -0.6% Sales and marketing costs 114.1 107.6 6.5 6.0% (1.4) 115.5 107.6 7.9 7.3% Research and development 85.1 83.3 1.8 2.2% (1.0) 86.1 83.3 2.8 3.4% General and administrative 50.7 68.7 (18.0) -26.2% (0.3) 51.0 68.7 (17.7) -25.8% Amortization of intangible assets and depreciation 68.8 86.0 (17.2) -20.0% (0.3) 69.1 86.0 (16.9) -19.7% Restructuring costs 4.1 11.5 (7.4) -64.3% (0.1) 4.2 11.5 (7.3) -63.5% Acquisition related and other costs 12.7 5.6 7.1 126.8% - 12.7 5.6 7.1 126.8% Total operating expenses 569.7 605.4 (35.7) -5.9% (7.2) 576.9 605.4 (28.5) -4.7% Income from operations 118.3 82.0 36.3 44.3% (0.3) 118.6 82.0 36.6 44.6% Interest expense, net 103.4 107.9 (4.5) -4.2% - 103.4 107.9 (4.5) -4.2% Loss on extinguishment of debt 1.8-1.8 nm - 1.8-1.8 nm Other (income) expense, net 25.0 (45.9) 70.9 nm 0.6 24.4 (45.9) 70.3 nm Income (loss) before income taxes (11.9) 20.0 (31.9) -159.5% (0.9) (11.0) 20.0 (31.0) -155.0% Provision for (benefit from) income taxes 5.7 14.9 (9.2) nm - 5.7 14.9 (9.2) nm Net income (loss) $ (17.6) $ 5.1 $ (22.7) nm $ (0.9) $ (16.7) $ 5.1 $ (21.8) nm Add backs 227.4 204.2 23.2 11.4% 0.2 227.2 204.2 23.0 11.3% Adjusted EBITDA $ 209.8 $ 209.3 $ 0.5 0.2% $ (0.7) $ 210.5 $ 209.3 $ 1.2 0.6% Adjusted EBITDA margin 30.5% 30.4% 30.3% 30.4% (1) Pro Forma Results contain pre-acquisition results, reversal of acquisition-related adjustments, adjustments to debt reflecting our current debt structure and the related tax effects (2) Currency impact is computed by converting actual results using Q212 exchange rates (3) Q213 and Q212 results include stock compensation expense by category as follows: Cost of product updates and support fees $ - $ - Cost of consulting services and other fees - - Sales and marketing 0.5 0.1 Research and development 0.3 - General and administrative 0.7 0.1 Stock Compensation Expense $ 1.5 $ 0.2 5
Q213 v. Q212 EBITDA: Pro Forma Pro Forma Results Currency-adjusted Results $ in millions % Currency Adjusted % Q213 Q212 Variance Variance Impact (1) Q213 Q212 Variance Variance Net income (loss) $ (17.6) $ 5.1 $ (22.7) -445.1% $ (0.9) $ (16.7) $ 5.1 $ (21.8) -427.5% Reconciliation of net incoem (loss) to adjusted Pro Forma EBITDA Net Interest 103.4 107.9 (4.5) -4.2% - 103.4 107.9 (4.5) -4.2% Income tax expense (benefit) 5.7 14.9 (9.2) -61.7% - 5.7 14.9 (9.2) -61.7% Depreciation and amortization 68.8 86.0 (17.2) -20.0% (0.3) 69.1 86.0 (16.9) -19.7% Loss on extinguishment of debt 1.8-1.8 nm - 1.8-1.8 nm FX (gains) losses 25.1 (45.9) 71.0 nm 0.6 24.5 (45.9) 70.4 nm Pro Forma EBITDA 187.2 168.0 19.2 (0.6) 187.8 168.0 19.8 Share-based compensation 1.5 0.2 1.3 650.0% - 1.5 0.2 1.3 650.0% Acquisition transaction and integration costs 12.7 5.6 7.1 126.8% - 12.7 5.6 7.1 126.8% Non-recurring, extraordinary, exceptional, unusual (gains) losses 1.7 10.3 (8.6) -83.5% - 1.7 10.3 (8.6) -83.5% Restructuring 4.1 11.5 (7.4) -64.3% (0.1) 4.2 11.5 (7.3) -63.5% Other non-operating expenses 2.1 2.8 (0.7) -25.0% - 2.1 2.8 (0.7) -25.0% Lawson transaction costs savings (2) - 7.2 (7.2) -100.0% - - 7.2 (7.2) -100.0% Infor combination cost savings (3) 0.5 3.7 (3.2) -86.5% - 0.5 3.7 (3.2) -86.5% Adjusted Pro Forma EBITDA $ 209.8 $ 209.3 $ 0.5 0.2% $ (0.7) $ 210.5 $ 209.3 $ 1.2 0.6% (1) Currency impact is computed by converting actual results using Q212 exchange rates (2) Anticipated cost savings from the acqusition of Lawson yet to be realized (3) Anticipated cost savings from Combo Co yet to be realized 6
YTD13 v. YTD12 P&L: GAAP Actual Results Currency-adjusted Results Actual Actual % Currency Adjusted Actual % YTD FY13 YTD FY12 Variance Variance Impact (1) YTD FY13 YTD FY12 Variance Variance Revenue License fees $ 221.4 $ 212.4 $ 9.0 4.2% $ (5.1) $ 226.5 $ 212.4 $ 14.1 6.6% Product updates and support fees 720.1 621.8 98.3 15.8% (17.7) 737.8 621.8 116.0 18.7% Software revenues 941.5 834.2 107.3 12.9% (22.8) 964.3 834.2 130.1 15.6% Consulting services and other fees 372.8 368.0 4.8 1.3% (14.8) 387.6 368.0 19.6 5.3% Total revenues 1,314.3 1,202.2 112.1 9.3% (37.6) 1,351.9 1,202.2 149.7 12.5% Expenses Cost of license fees 37.8 40.7 (2.9) -7.1% (1.0) 38.8 40.7 (1.9) -4.7% Cost of product updates and support fees 125.9 128.0 (2.1) -1.6% (4.1) 130.0 128.0 2.0 1.6% Cost of consulting services and other fees 290.1 286.2 3.9 1.4% (12.3) 302.4 286.2 16.2 5.7% Sales and marketing costs 212.6 200.2 12.4 6.2% (6.6) 219.2 200.2 19.0 9.5% Research and development 167.8 150.2 17.6 11.7% (4.7) 172.5 150.2 22.3 14.8% General and administrative 100.8 120.2 (19.4) -16.1% (2.4) 103.2 120.2 (17.0) -14.1% Amortization of intangible assets and depreciation 141.8 162.4 (20.6) -12.7% (3.0) 144.8 162.4 (17.6) -10.8% Restructuring costs 9.6 52.4 (42.8) -81.7% (0.8) 10.4 52.4 (42.0) -80.2% Acquisition related and other costs 14.6 18.0 (3.4) -18.9% - 14.6 18.0 (3.4) -18.9% Total operating expenses 1,101.0 1,158.3 (57.3) -4.9% (34.9) 1,135.9 1,158.3 (22.4) -1.9% Income from operations 213.3 43.9 169.4 385.9% (2.7) 216.0 43.9 172.1 392.0% Interest expense, net 211.6 236.7 (25.1) -10.6% - 211.6 236.7 (25.1) -10.6% Loss on extinguishment of debt 1.8 8.7 (6.9) -79.3% - 1.8 8.7 (6.9) -79.3% Other (income) expense, net 20.8 (28.9) 49.7-172.0% 1.7 19.1 (28.9) 48.0-166.1% Loss before benefit from income taxes (20.9) (172.6) 151.7-87.9% (4.4) (16.5) (172.6) 156.1-90.4% Benefit from income taxes 35.1 (25.8) 60.9 nm (0.2) 35.3 (25.8) 61.1 nm Net loss $ (56.0) $ (146.8) $ 90.8-61.9% $ (4.2) $ (51.8) $ (146.8) $ 95.0-64.7% (1) Currency impact is computed by converting actual results using FY12 exchange rates 7
YTD13 v. YTD12 P&L: Pro Forma Pro Forma Results (1) Currency-adjusted Results Actual Actual % Currency Adjusted Actual % YTD FY13 (3) YTD FY12 Variance Variance Impact (2) YTD FY13 YTD FY12 Variance Variance Revenue License fees $ 229.7 $ 231.3 $ (1.6) -0.7% $ (5.2) $ 234.9 $ 231.3 $ 3.6 1.6% Product updates and support fees 721.2 726.8 (5.6) -0.8% (17.7) 738.9 726.8 12.1 1.7% Software revenues 950.9 958.1 (7.2) -0.8% (22.9) 973.8 958.1 15.7 1.6% Consulting services and other fees 375.7 390.1 (14.4) -3.7% (14.8) 390.5 390.1 0.4 0.1% Total revenues 1,326.6 1,348.2 (21.6) -1.6% (37.7) 1,364.3 1,348.2 16.1 1.2% Expenses Cost of license fees 37.8 41.5 (3.7) -8.9% (1.0) 38.8 41.5 (2.7) -6.5% Cost of product updates and support fees 125.9 135.7 (9.8) -7.2% (4.1) 130.0 135.7 (5.7) -4.2% Cost of consulting services and other fees 290.9 314.6 (23.7) -7.5% (12.3) 303.2 314.6 (11.4) -3.6% Sales and marketing costs 212.6 220.4 (7.8) -3.5% (6.6) 219.2 220.4 (1.2) -0.5% Research and development 167.8 163.7 4.1 2.5% (4.7) 172.5 163.7 8.8 5.4% General and administrative 100.8 140.3 (39.5) -28.2% (2.4) 103.2 140.3 (37.1) -26.4% Amortization of intangible assets and depreciation 141.8 174.6 (32.8) -18.8% (3.0) 144.8 174.6 (29.8) -17.1% Restructuring costs 9.6 52.4 (42.8) -81.7% (0.8) 10.4 52.4 (42.0) -80.2% Acquisition related and other costs 14.6 43.5 (28.9) -66.4% - 14.6 43.5 (28.9) -66.4% Total operating expenses 1,101.8 1,286.7 (184.9) -14.4% (34.9) 1,136.7 1,286.7 (150.0) -11.7% Income from operations 224.8 61.5 163.3 265.4% (2.8) 227.6 61.5 166.1 269.9% Interest expense, net 211.6 213.9 (2.3) -1.1% - 211.6 213.9 (2.3) -1.1% Loss on extinguishment of debt 1.8 8.7 (6.9) -79.3% - 1.8 8.7 (6.9) -79.3% Other (income) expense, net 20.8 (27.8) 48.6 nm 1.7 19.1 (27.8) 46.9 nm Loss before benefit from income taxes (9.4) (133.3) 123.9-92.9% (4.5) (4.9) (133.3) 128.4-96.3% Provision for (benefit from) income taxes 35.1 (32.6) 67.7-207.7% (0.2) 35.3 (32.6) 67.9-208.3% Net loss $ (44.5) $ (100.7) $ 56.2-55.8% $ (4.3) $ (40.2) $ (100.7) $ 60.5-60.1% Add backs 449.4 510.4 (61.0) -12.0% (2.3) 451.7 510.4 (58.7) -11.5% Adjusted EBITDA $ 404.9 $ 409.7 $ (4.8) -1.2% $ (6.6) $ 411.5 $ 409.7 $ 1.8 0.4% Adjusted EBITDA margin 30.5% 30.4% 30.2% 30.4% (1) Pro Forma Results contain pre-acquisition results, reversal of acquisition-related adjustments, adjustments to debt reflecting our current debt structure and the related tax effects (2) Currency impact is computed by converting actual results using FY12 exchange rates (3) YTD FY13 and YTD FY12 results include stock compensation expense by category as follows: Cost of product updates and support fees $ - $ 2.5 Cost of consulting services and other fees - 7.6 Sales and marketing costs 0.8 7.7 Research and development 0.6 5.4 General and administrative 1.4 7.7 Stock Compensation Expense $ 2.8 $ 30.9 8
YTD13 v. YTD12 EBITDA: Pro Forma Currency-adjusted Results % Currency Adjusted % YTD FY13 YTD FY12 Variance Variance Impact (1) YTD FY13 YTD FY12 Net loss $ (44.5) $ (100.7) $ 56.2-55.8% $ (4.3) $ (40.2) $ (100.7) $ 60.5-60.1% Reconciliation of net loss to adjusted Pro Forma EBITDA Net Interest 211.6 213.9 (2.3) -1.1% - 211.6 213.9 (2.3) -1.1% Income tax proviison (benefit) 35.1 (32.6) 67.7-207.7% (0.2) 35.3 (32.6) 67.9-208.3% Depreciation and amortization 141.8 174.6 (32.8) -18.8% (3.0) 144.8 174.6 (29.8) -17.1% Loss on extinguishement of debt 1.8 8.7 (6.9) -79.3% - 1.8 8.7 (6.9) -79.3% FX (gains) losses 20.9 (27.5) 48.4 nm 1.7 19.2 (27.5) 46.7 nm Pro Forma EBITDA 366.7 236.4 130.3 (5.8) 372.5 236.4 136.1 57.6% Variance Share-based compensation 2.8 30.9 (28.1) -90.9% - 2.8 30.9 (28.1) -90.9% Acquisition transaction and integration costs 14.6 43.5 (28.9) -66.4% - 14.6 43.5 (28.9) -66.4% Non-recurring, extraordinary, exceptional, unusual (gains) losses 5.2 10.6 (5.4) -50.9% - 5.2 10.6 (5.4) -50.9% Restructuring 9.6 52.4 (42.8) -81.7% (0.8) 10.4 52.4 (42.0) -80.2% Other non-operating expenses 3.9 5.4 (1.5) -27.8% - 3.9 5.4 (1.5) -27.8% Lawson transaction costs savings (2) - 23.0 (23.0) -100.0% - - 23.0 (23.0) -100.0% Infor combination cost savings (3) 2.1 7.5 (5.4) -72.0% - 2.1 7.5 (5.4) -72.0% Adjusted Pro Forma EBITDA $ 404.9 $ 409.7 $ (4.8) -1.2% $ (6.6) $ 411.5 $ 409.7 $ 1.8 0.4% (1) Currency impact is computed by converting actual results using FY12 exchange rates (2) Anticipated cost savings from the acqusition of Lawson yet to be realized (3) Anticipated cost savings from Combo Co yet to be realized Pro Forma Results Variance 9
Quarterly Overview: LTM Results $ in millions Quarter Ended February 29, Quarter Ended May 31, Quarter Ended August 31, Quarter Ended November 30, LTM Ended November 30, Revenues License fees $ 132.3 $ 160.6 $ 100.8 $ 120.6 $ 514.3 Product updates and support 327.4 335.2 357.1 363.0 1,382.7 Software revenues 459.7 495.8 457.9 483.6 1,897.0 Consulting services and other fees 185.0 198.0 173.9 198.9 755.8 Total revenues 644.7 693.8 631.8 682.5 2,652.8 Expenses Cost of license fees 22.5 26.9 17.6 20.2 87.2 Cost of product updates and support 64.8 65.7 62.3 63.6 256.4 Cost of consulting services and other 151.7 156.0 140.1 150.0 597.8 Sales and marketing 108.4 130.2 98.5 114.1 451.2 Research, development and updates 83.1 89.0 82.7 85.1 339.9 General and administrative 54.5 58.7 50.1 50.7 214.0 Depreciation and amortization of intangible assets 81.4 79.7 73.0 68.8 302.9 Restructuring costs (0.1) 15.5 5.5 4.1 25.0 Acquisition related and other costs 5.4 52.5 1.9 12.7 72.5 Total operating expenses 571.7 674.2 531.7 569.3 2,346.9 Income from operations 73.0 19.6 100.1 113.2 305.9 Interest expense, net 107.3 107.3 108.2 103.4 426.2 Loss on extinguishment of debt - 98.4-1.8 100.2 Other (income) expense, net (23.7) (59.1) (4.2) 25.0 (62.0) Loss before income taxes (10.6) (127.0) (3.9) (17.0) (158.5) Provision (benefit) for income taxes 12.2 2.8 29.4 5.7 50.1 Net loss $ (22.8) $ (129.8) $ (33.3) $ (22.7) $ (208.6) (1) Presented in complance with Infor Notes' Indentures including pro forma results which contain pre-acquisition results, reversal of acquisition-related adjustments, adjustments to debt reflecting our current debt structure and the related tax effects. 10
Quarterly Overview: LTM Results $ in millions Quarter Ended February 29, Quarter Ended May 31, Quarter Ended August 31, Quarter Ended November 30, LTM Ended November 30, (1)(2) Net loss $ (22.8) $ (129.8) $ (33.3) $ (22.7) (208.6) Reconciliaition of net loss to Adjusted EBITDA: Net Interest 107.3 107.3 108.2 103.4 426.2 Income tax expense (benefit) 12.2 2.8 29.4 5.7 50.1 Depreciation and amortization 81.4 79.7 73.0 68.8 302.9 Purchase accounting impact - License fees 10.3 2.7 4.8 3.5 21.3 Purchase accounting impact - Product updates and support fees 29.7 25.0 0.6 0.5 55.8 Purchase accounting impact - Consulting 2.9 2.1 1.4 1.5 7.9 Purchase accounting impact - Deferred Costs (3.2) (1.0) (0.4) (0.4) (5.0) Share-based compensation 0.1 10.8 1.3 1.5 13.7 Acquisition transaction and integration costs 5.4 52.5 1.9 12.7 72.5 Non-recurring, extraordinary, exceptional, unusual (gains) losses 6.0 2.0 3.5 1.7 13.2 Restructuring (0.1) 15.5 5.5 4.1 25.0 Other non-operating expenses 2.8 1.8 1.8 2.1 8.5 FX (gains) losses (23.6) (59.3) (4.2) 25.1 (62.0) Loss on extinguishment of debt - 98.4-1.8 100.2 Lawson transaction costs savings (3) 2.2 0.3 - - 2.5 Infor combination cost savings (4) 3.8 2.6 1.6 0.5 8.5 Adjusted EBITDA $ 214.4 $ 213.4 $ 195.1 $ 209.8 $ 832.7 Adjusted EBITDA margin 33.3% 30.8% 30.9% 30.7% 31.4% (1) Presented in complance with Infor Notes' Indentures including pro forma results which contain pre-acquisition results, reversal of acquisition-related adjustments, adjustments to debt reflecting our current debt structure and the related tax effects. (2) Consolidated EBITDA as of November 30, pursuant to the provisions of Infor's Credit Agreement was approximately $833.2 (3) Anticipated cost savings from the acqusition of Lawson yet to be realized (4) Anticipated cost savings from Combo Co yet to be realized 11
Balance Sheet: GAAP November 30, May 31, $ in millions Assets Current assets Cash and cash equivalents $ 238.5 $ 384.4 Accounts receivable, net 366.5 412.6 Other current assets 144.7 168.2 Total current assets 749.7 965.2 Property and equipment, net of accumulated depreciation 67.3 63.3 Intangible assets, net of accumulated amortization 5,315.6 5,268.7 Other long-term assets 278.7 257.8 Total assets $ 6,411.3 $ 6,555.0 Liabilities and Stockholders' Deficit Current liabilities Accounts payable and accrued liabilities 526.6 548.5 Deferred revenue 673.2 851.9 Current portion of long-term debt 91.2 90.8 Total current liabilities 1,291.0 1,491.2 Long-term debt 5,275.9 5,267.8 Other long-term liabilities 396.3 395.1 Total liabilities 6,963.2 7,154.1 Stockholders' deficit (551.9) (599.1) Total liabilities and stockholders' deficit $ 6,411.3 $ 6,555.0 12
Statement of Cash Flows: GAAP $ in millions Six Months Ended Novemebr 30, November 30, 2011 Cash flows from operating activities Net income (loss) $ (56.0) $ (146.8) Adjustments to reconcile net loss to net cash provided by operating activities Depreciation and amortization 141.8 162.4 Non cash items and change in working capital (134.1) (178.0) Net cash provided by (used in) operating activities (48.3) (162.4) Cash flows from investing activities Acquistion, net of cash acquired (39.8) (1,501.6) Purchases of property, equipment and software (18.1) (8.8) Other investing activities 1.8 (3.1) Net cash used in investing activities (56.1) (1,513.5) Cash flows from financing activities Deferred financing fees and other financing activities (27.6) (84.0) Proceeds from the issuance of stock - 480.0 Proceeds from issuance of debt 2,778.9 2,063.8 Payment of debt obligations (2,802.3) (846.0) Net cash (used in) provided by financing activities (51.0) 1,613.8 Increase (decrease) in cash and cash equivalents (155.4) (62.1) Effect of exchange rate on cash and cash equivalents 9.5 (13.8) Net increase (decrease) in cash and cash equivalents (145.9) (75.9) Cash and cash equivalents Beginning of the period 384.4 337.0 End of the period $ 238.5 $ 261.1 13
Debt Summary Outstanding USD Outstanding Tranche Currency Pricing November 30, November 30, Maturity First Lien - Tranche B-1 Term Loan USD AER (2) + 4.5 margin (1) $370.0 $370.0 10/5/2016 First Lien - Tranche B-2 Term Loan USD AER (2) + 4.0 margin (1) $2,793.1 $2,793.1 4/5/2018 First Lien - Term Loan EUR (3) AER (2) + 5.5 margin (1) 249 $322.7 4/5/2018 Lawson Senior Notes USD 9.375% $1,015.0 $1,015.0 4/1/2019 Lawson Senior Notes EUR (3) 10.000% 250 $324.4 4/1/2019 Lawson Senior Notes USD 11.500% $560.0 $560.0 7/15/2018 Lawson Senior Notes Discount USD ($18.1) ($18.1) Total Debt $5,367.1 Less: Cash Balance ($238.5) Net Debt $5,128.6 LTM EBITDA $832.7 LTM EBITDA to Total Debt LTM EBITDA to Net Debt LTM EBITDA to Senior Debt 6.5 X 6.2 X 4.2 X (1) Pricing has step downs based upon leverage levels (2) Adjusted Eurocurrency Rate (AER) - The AER floor is 1.25% per annum. (3) Euro exchange rate as of November 30, equaled 1.2974 14
Operating Metrics 15
Revenue metrics By region (Q2 13) By region (FY12) 34% 9% 57% Americas EMEA APAC 35% 9% 56% Americas EMEA APAC By type (Q2 13) By type (FY12) 29% 18% License 28% 20% License Maintenance Maintenance 53% Services 52% Services * Revenue Metrics are based on Pro Forma Revenue using actual rates 16
Operational metrics Direct/Channel mix license bookings Customer mix license bookings 100% 80% 22% 21% 22% 18% 23% 100% 80% 16% 21% 19% 27% 22% 60% 60% 40% 78% 79% 78% 82% 77% 40% 84% 79% 81% 73% 78% 20% 20% 0% Q212 Q312 Q412 Q113 Q213 0% Q212 Q312 Q412 Q113 Q213 Top = channel Bottom = direct Top = new customers, Bottom = existing customers Licenses - new customers Forecasted LTM gross retention 1200 900 600 300 0 974 885 804 743 792 Q212 Q312 Q412 Q113 Q213 100% 80% 60% 40% 20% 0% 94% 94% 94% 94% 94% Q212 Q312 Q412 Q113 Q213 Maintenance retention incorporates forecast for open renewals; historical periods are updated to reflect actual renewal rates 17
Productivity metrics Pro forma license revenue per rep ($000s) Professional services utilization 500 450 400 350 300 250 200 150 100 50 0 263 202 231 157 180 Q212 Q312 Q412 Q113 Q213 90% 75% 60% 45% 30% 15% 0% 55% 54% 56% 56% 63% Q212 Q312 Q412 Q113 Q213 Changed methodology in FY13 to incorporate managers and restated FY12 18
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