Financial Overview - Infor

1Copyright © 2013. Infor. All Rights Reserved. www.infor.comCopyright © 2013. Infor. All Rights Reserved. www.infor.com 1

Financial Overview

April 2015

2Copyright © 2013. Infor. All Rights Reserved. www.infor.com

Infor Overview

one of the world’s

largest providers

of enterprise

software and

services

3,770developers

3,480consultants

1,620support

engineers

$786Madjusted EBITDA

FY15 LTM*

pro forma

45Mcloud users

3,444new customers

in FY15

12,790employees

$2.8Btotal revenue

FY15 LTM*

pro forma

18%growth net new

license bookings

(ACV)

* LTM = Last twelve months ended April 30, 2015


Pro forma revenue ($ in millions)

(1) Results as presented are based on actual currency and are pro forma for pre-acquisition results and reversal of acquisition related adjustments.

FY 2012 and FY 2013 Pro forma EBITDA includes $13.9 million and $3.3 million of incremental synergies yet to be realized, respectively.

(2) Beginning in the first quarter of FY 2015, we changed our fiscal year end to April 30 from May 31. As a result, our results of May 2014 are included in both the fourth quarter of Fiscal 2014 and

the first quarter of Fiscal 2015 and are reflected in the FY 2014 and FY 2015 LTM columns above.

(1)(2)

Historical Financial Summary Pro forma adjusted EBITDA ($ in millions)

(1)(2)

$778 $763 $750 $700

$1,444 $1,443 $1,467 $1,459

$537 $532 $553 $601

$0

$1,000

$2,000

$3,000

FY 2012 FY 2013 FY 2014 FY 2015 LTM

Services Maintenance License Fees

$2,759 $2,738$2,770 $2,760

$838 $829 $814 $786

$0

$200

$400

$600

$800

$1,000

FY 2012 FY 2013 FY 2014 FY 2015 LTM

EBITDA Margin: 30.4% 30.3% 29.4% 28.5%


Note: Results as presented are pro forma for pre-acquisition results and reversal of acquisition related adjustments.

(1) Constant currency is computed by converting actual results using FY14 exchange rates.

FY15 Financial Overview

YoY Growth: CC(1) Actual

License Fees +13.7% +9.2%

Maintenance +2.3% -0.6%

Services -2.4% -6.7%

Total +3.3% -0.3%

Adjusted EBITDA $814M $819M $786M

% Margin 29% 29% 29%

$750 $733 $700

$1,467 $1,502 $1,459

$553 $625 $601

$0

$1,000

$2,000

$3,000

FY 2014 FY 2015 LTM CC FY 2015 LTM Actual

Pro

form

a r

even

ue

($ in m

illio

ns)

License Fees

Maintenance

Services

$2,760$2,770 $2,860


LTM April 2015 v. April 2014 P&L: Pro Forma $ in millions % %

Variance Variance

Revenue

Software license fees and subscriptions $ 600.7 $ 549.9 $ 50.8 9.2% $ (24.8) $ 625.5 $ 549.9 $ 75.6 13.7%

Product updates and support fees 1,458.9 1,467.3 (8.4) -0.6% (42.8) 1,501.7 1,467.3 34.4 2.3%

Software revenues 2,059.6 2,017.2 42.4 2.1% (67.6) 2,127.2 2,017.2 110.0 5.5%

Consulting services and other fees 700.4 750.6 (50.2) -6.7% (32.2) 732.6 750.6 (18.0) -2.4%

Total revenues 2,760.0 2,767.8 (7.8) -0.3% (99.8) 2,859.8 2,767.8 92.0 3.3%

Expenses

Cost of software license fees and subscriptions 127.6 100.2 27.4 27.3% (3.0) 130.6 100.2 30.4 30.3%

Cost of product updates and support fees 260.9 260.8 0.1 0.0% (7.9) 268.8 260.8 8.0 3.1%

Cost of consulting services and other fees 560.1 593.6 (33.5) -5.6% (24.5) 584.6 593.6 (9.0) -1.5%

Sales and marketing costs 466.7 457.6 9.1 2.0% (12.4) 479.1 457.6 21.5 4.7%

Research and development 404.5 392.2 12.3 3.1% (11.4) 415.9 392.2 23.7 6.0%

General and administrative 196.4 192.0 4.4 2.3% (7.8) 204.2 192.0 12.2 6.4%

Amortization of intangible assets and depreciation 245.7 263.7 (18.0) -6.8% (6.3) 252.0 263.7 (11.7) -4.4%

Restructuring costs 11.5 13.4 (1.9) -14.2% (0.1) 11.6 13.4 (1.8) -13.4%

Acquisition-related and other costs 1.7 26.3 (24.6) -93.5% - 1.7 26.3 (24.6) -93.5%

Total operating expenses 2,275.1 2,299.8 (24.7) -1.1% (73.4) 2,348.5 2,299.8 48.7 2.1%

Income from operations 484.9 468.0 16.9 3.6% (26.4) 511.3 468.0 43.3 9.3%

Interest expense, net 349.7 382.9 (33.2) -8.7% 0.1 349.6 382.9 (33.3) -8.7%

Loss on extinguishment of debt 172.4 5.2 167.2 nm - 172.4 5.2 167.2 nm

Other (income) expense, net (77.5) (46.1) (31.4) 68.1% (12.2) (65.3) (46.1) (19.2) 41.6%

Income before income taxes 40.3 126.0 (85.7) -68.0% (14.3) 54.6 126.0 (71.4) -56.7%

Income tax provision (benefit) (39.2) 7.3 (46.5) nm (3.6) (35.6) 7.3 (42.9) nm

Net income $ 79.5 $ 118.7 $ (39.2) -33.0% $ (10.7) $ 90.2 $ 118.7 $ (28.5) -24.0%#DIV/0!

Add backs 706.7 693.4 13.3 1.9% (22.1) 728.8 693.4 35.4 5.1%

Adjusted EBITDA $ 786.2 $ 812.1 $ (25.9) -3.2% $ (32.8) $ 819.0 $ 812.1 $ 6.9 0.8%

Adjusted EBITDA margin 28.5% 29.3% 28.6% 29.3%

(1) Pro Forma Results contain reversal of acquisition-related adjustments

(2) Pro Forma Results for FY15 reflect the twelve months ended April 30, 2015 -

Pro Forma Results for FY14 have been recast to reflect the corresponding twelve months ended April 30, 2014

(3) Currency impact is computed by converting actual results using FY14 exchange rates

Pro Forma Results(1)(2) Currency-adjusted Results

Actual Actual Currency Adjusted Actual

VarianceFY15 FY14 Variance Impact (3) FY15 FY14


Balance Sheet & Cash Flow Highlights• $526.7M cash & equivalents at Q4 FY15

• We have significant cash on our balance sheet and continue to generate strong cash flows

• In addition to cash on hand, we have $150.0 million revolving credit facility available to us that has not been used

• $338.0M in current accounts receivable at Q4 FY15

• Historical DSO less than 50 days

• $342.2M operating cash flow in FY15 LTM

• 53%+ of total revenue from maintenance in FY15 with 93%+ renewal rates

• Highly profitable and highly predictable revenue and cash flow model


• Leading private equity firm with approximately $12 billion of committed capital under management

• Golden Gate is dedicated to partnering with world-class management teams to invest in change-intensive, growth businesses

• Golden Gate is one of the most active software investors in the world, having invested in or acquired more than 65 software companies since its inception in 2000

• Current portfolio of software companies generated combined revenues in 2014 of approximately $8 billion

• Leading growth equity firm founded in 1984

• Raised more than $16 billion in capital, and has invested in more than 400 companies in technology, healthcare and other growth sectors

• Particularly active in the technology sector, having made investments in more than 230 technology companies, including more than 110 software companies

• Helped build pioneering companies in the ERP, CRM, information and data security, antivirus, messaging management and archiving, and SaaS categories

Representative Technology Investments Representative Technology Investments

Our Sponsors

8Copyright © 2013. Infor. All Rights Reserved. www.infor.comCopyright © 2013. Infor. All Rights Reserved. www.infor.com 8

Appendix


FY15 v. FY14 P&L: GAAP 11-Month Transition Period$ in millions % %

Variance Variance

Revenue (recast) (recast)

Software license fees and subscriptions $ 479.2 $ 427.8 $ 51.4 12.0% $ (24.2) $ 503.4 $ 427.8 $ 75.6 17.7%

Product updates and support fees 1,330.3 1,340.9 (10.6) -0.8% (44.3) 1,374.6 1,340.9 33.7 2.5%

Software revenues 1,809.5 1,768.7 40.8 2.3% (68.5) 1,878.0 1,768.7 109.3 6.2%

Consulting services and other fees 629.4 677.0 (47.6) -7.0% (33.1) 662.5 677.0 (14.5) -2.1%

Total revenues 2,438.9 2,445.7 (6.8) -0.3% (101.6) 2,540.5 2,445.7 94.8 3.9%

Expenses

Cost of software license fees and subscriptions 109.7 81.9 27.8 33.9% (2.9) 112.6 81.9 30.7 37.5%

Cost of product updates and support fees 238.2 239.1 (0.9) -0.4% (8.1) 246.3 239.1 7.2 3.0%

Cost of consulting services and other fees 507.2 540.3 (33.1) -6.1% (25.3) 532.5 540.3 (7.8) -1.4%

Sales and marketing costs 412.9 403.3 9.6 2.4% (12.8) 425.7 403.3 22.4 5.6%

Research and development 369.8 357.1 12.7 3.6% (11.6) 381.4 357.1 24.3 6.8%

General and administrative 177.9 174.2 3.7 2.1% (8.1) 186.0 174.2 11.8 6.8%

Amortization of intangible assets and depreciation 222.9 241.5 (18.6) -7.7% (6.6) 229.5 241.5 (12.0) -5.0%

Restructuring costs 5.7 12.8 (7.1) -55.5% (0.2) 5.9 12.8 (6.9) -53.9%

Acquisition-related and other costs 1.4 27.3 (25.9) -94.9% - 1.4 27.3 (25.9) -94.9%

Total operating expenses 2,045.7 2,077.5 (31.8) -1.5% (75.6) 2,121.3 2,077.5 43.8 2.1%

Income from operations 393.2 368.2 25.0 6.8% (26.0) 419.2 368.2 51.0 13.9%

Interest expense, net 320.1 348.4 (28.3) -8.1% - 320.1 348.4 (28.3) -8.1%

Loss on extinguishment of debt 172.4 5.2 167.2 nm - 172.4 5.2 167.2 nm

Other (income) expense, net (66.8) (52.0) (14.8) 28.5% (11.9) (54.9) (52.0) (2.9) 5.6%

Income (loss) before income taxes (32.5) 66.6 (99.1) nm (14.1) (18.4) 66.6 (85.0) nm

Income tax provision (benefit) (52.2) (0.4) (51.8) nm (2.1) (50.1) (0.4) (49.7) nm

Net income $ 19.7 $ 67.0 $ (47.3) -70.6% $ (12.0) $ 31.7 $ 67.0 $ (35.3) -52.7%

(1) Actual Results for YTD FY15 reflect the eleven-month transition period of June 1, 2014, through April 30, 2015 -

Actual Results for YTD FY14 have been recast to reflect the corresponding eleven months ended April 30, 2014

(2) Currency impact is computed by converting actual results using FY14 exchange rates

Actual Results (1) Currency-adjusted Results

Actual Actual Currency Adjusted Actual

FY15 11-month FY14 11-month VarianceFY15 11-month FY14 11-month Variance Impact (2)


FY15 and FY14 Balance Sheet: GAAP

April 30, May 31,

$ in millions 2015 2014

Assets

Current assets

Cash and cash equivalents 526.7$ 575.3$

Accounts receivable, net 338.0 404.2

Other current assets 212.1 202.8

Total current assets 1,076.8 1,182.3

Property and equipment, net of accumulated depreciation 81.8 82.8

Intangible assets, net of accumulated amortization 4,776.8 5,267.9

Other long-term assets 113.1 123.9

Total assets 6,048.5$ 6,656.9$

Liabilities and Stockholders' Deficit

Current liabilities

Accounts payable and accrued liabilities 436.1 481.2

Deferred revenue 867.0 975.3

Current portion of long-term debt 0.1 31.7

Total current liabilities 1,303.2 1,488.2

Long-term debt 5,226.7 5,218.4

Other long-term liabilities 315.4 410.3

Total liabilities 6,845.3 7,116.9

Stockholders' deficit (796.8) (460.0)

Total liabilities and stockholders' deficit 6,048.5$ 6,656.9$


FY15 and FY14 Cash Flow: GAAP $ in millions

April 30,

2015

April 30,

2014

Cash flows from operating activities (recast)

Net income 19.7$ 67.0$

Adjustments to reconcile net income to net cash

provided by operating activities:

Depreciation and amortization 222.9 241.5

Non cash items and change in working capital (34.4) (27.7)

Net cash provided by operating activities 208.2 280.8

Cash flows from investing activities

Acquisition, net of cash acquired (30.1) (199.7)

Purchases of property, equipment and software (35.7) (29.9)

Other investing activities 17.1 (20.2)

Net cash used in investing activities (48.7) (249.8)

Cash flows from financing activities

Deferred financing fees and other financing activities (177.2) (38.4)

Proceeds from issuance of debt 2,019.7 3,487.7

Loans to stockholders - (5.2)

Payment of debt obligations (1,935.0) (3,459.8)

Dividends paid (65.7) -

Net cash used in financing activities (158.2) (15.7)

Net Increase in cash and cash equivalents 1.3 15.3

Effect of exchange rate on cash and cash equivalents (49.9) 9.9

Net (decrease) increase in cash and cash equivalents (48.6) 25.2

Cash and cash equivalents

Beginning of the period 575.3 421.9

End of the period 526.7$ 447.1$

(1) Cash flows for FY15 reflect the eleven-month transition period of June 1, 2014, through April 30, 2015 -

Cash flows for YTD FY14 have been recast to reflect the corresponding eleven months ended April 30, 2014

Fiscal Years Ended (1)


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Financial Overview - Infor