Oracle Corporation et al v. SAP AG et al

Filing 989

Offer of Proof Regarding Damages Evidence by Oracle International Corporation, Oracle USA Inc., Siebel Systems, Inc. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C, # 4 Exhibit D, # 5 Exhibit E)(Alinder, Zachary) (Filed on 11/15/2010) Modified on 11/16/2010 (kc, COURT STAFF).

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Oracle Corporation et al v. SAP AG et al Doc. 989 Att. 2 EXHIBIT B Dockets.Justia.com PeopleSoft License - Oracle's Expected Financial Impact Calculation Inputs (Factor 3 ) INPUTS Category Number of Lost Customers Minus: Customer Attrition Plus: Other License Sales Multiplied By: Average Revenue per Customer = Total Revenue Multiplied By: Profit Margin Multiplied By: Discount Factor = Expected Profits (as of 1/05) Plus: Future Value of Customers Source SAP Projections 12/04 1/05 (PX0012, PX0023, PX0024, PX0161, PX0141) Expected Attrition for PSFT Oracle Valuation Documents (PX0013, PX0615) Oracle Valuation Documents (PX0615) Calculated Oracle Financial Records (PX0013, PX1758) Oracle Valuation Documents (PX0013) Calculated Oracle Valuation Documents (PX0658) PSFT Maintenance 3,000 (10/08) 1,375 (post-10/08) 3.5% (per year) 13-14% of customers (per year) $130,000 (per year) Other Revenues Conversions: 1,375 - 3,000 3.5% (per year) 13-14% of customers (per year) Conversions: $300,000 Other Sales: $130,000 Maintenance: 22% of license Calculated 80% 10% Calculated 8.3% Capitalization Rate 50% - 70% 10% 8.3% Capitalization Rate = ORACLE EXPECTED FINANCIAL IMPACTS 1 PeopleSoft License - Oracle's Expected Financial Impact Example Calculation (Factor 3 ) 3,000 3,000 Maintenance Customers / 1,375 Converted 2005 - 2014 Oracle Financial Impacts as of January 2005 (in $ millions) Impacted Oracle Maintenance (1/05 10/08) (Impacted 1,375 Customers 10/08 12/14) Impacted Additional Product Sales (1/05 12/14) Impacted Additional Maintenance (1/05 12/14) Customer Base Total Impacted Revenue Less: Costs Total Impacted Profits Future Financial Impact of Converted Customers Total Expected Impact as of January 2005 3,000 / 1,375 1,375 1 ,375 $ 1,082.9 $ (216.6 ) 342.4 265.0 (151.5) (53.0) $ 866.3 190.9 212.0 1,269.2 $ 519.9 67.4 122.6 $ 709.9 $ 1,386.2 258.3 334.6 Total Expected Impact as of January 2005 $ 1,690.3 $ (421.1) $ $1,979.1 Sources: PX0012, PX0013, PX0615, PX0658, PX1758 2 PeopleSoft License - Oracle's Expected Financial Impact Calculation Results (Factor 3 ) Calculation A PSFT/JDE Maintenance Customers Lost to TomorrowNow Customers Converting to SAP Applications Oracle's Expected Impact (as of January 2005) 3,000 (1,375 post-10/08) Calculation B 3,000 (2,000 post-10/08) Calculation C 3,000 1,375* 2,000* 3,000* $1.98 Billion $2.62 Billion $3.76 Billion * Approximately 25% annual Oracle product purchases Sources: PX0012, PX0013, PX0615, PX0658, PX1758 3 PeopleSoft License - Oracle's Expected Financial Impact 3 - Based on PeopleSoft Acquisition (Factor ) $11.1B Adjustment for unrelated assets acquired $8.85B Adjustment for nonexclusivity of software and support materials $2.67B PeopleSoft Acquisition Price Relevant Acquired Assets (Oracle Exclusivity) License Value: 3,000 Customers Converted to SAP $1.78B License Value: 2,000 Customers Converted to SAP 4 Sources: PX1008, PX0013 PeopleSoft Fair Market Value Damages - Summary $4B $3B $2.7B Oracle Impact $3.8B Oracle Impact $2.7B SAP Gain $2B $1B $2.0B Oracle Impact $1.2B SAP Gain $0.9M SAP Gain 1,375 Customers Converted to SAP 2,000 Customers Converted to SAP 3,000 Customers Converted to SAP 5 Siebel License - Oracle's Expected Financial Impact Example Calculation (Factor 3 ) 200 Maintenance Customers / 200 Converted 200 2006 - 2015 Oracle Financial Impacts as of September 2006 (in $ millions) Impacted Oracle Maintenance (9/06 12/15) Impacted Additional Product Sales (9/06 12/15) Impacted Additional Maintenance (9/06 12/15) Customer Base Total Impacted Revenue Less: Costs Total Impacted Profits Future Financial Impact of Converted Customers Total Expected Impact as of Sept. 2006 200 200 200 $ 109.4 45.2 29.5 $ 184.1 $ (16.4 ) (18.8) (4.4) $ (39.6) $ $ 93.0 26.4 25.1 $ 144.5 $ 71.0 7.6 8.9 $ 87.5 $ 164.0 34.0 34.0 Total Expected Impact as of September 2006 $232.0 Sources: PX0012, PX614, PX0615, PX0658, PX0958 PX1758 6 Siebel License - Oracle's Expected Financial Impact 3 - Based on Siebel Acquisition (Factor ) $6.1B Adjustment for unrelated assets acquired $3.4B Adjustment for non-exclusivity of software and support materials $170M Siebel Acquisition Price Relevant Acquired Assets (Oracle Exclusivity) Sources: PX0958, PX1003 License Value: 200 Converted Customers 7 Siebel Fair Market Value Damages - Summary $300M $247M to $232M To $170M $200M $100M $97M SAP's Expected Financial Gains Oracle Expected Financial Impacts 8 Oracle's Damages - Summary Damages Category PeopleSoft / JDE Software & Support Materials Costs of Development Siebel Software & Support Materials Costs of Development Database Software Materials Total Damages Amount at least $2 Billion at least $100 Million $55.6 Million at least $ 2,155,600,000 9

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