#1O MICRO® FOCUS Full Year Results Year ended 31 October 2021 8 February 2022 wwwww#2Micro Focus International Safe Harbour statement The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated ("relevant persons"). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. Information in the following presentation relating to the price at which relevant investments have been bought or sold in the past or the yield on such investments cannot be relied upon as a guide to the future performance of such investments. This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Micro Focus International plc (the "Company") or any company which is a subsidiary of the Company. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions. Certain statements contained in this presentation constitute forward-looking statements. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company's financial condition, business strategy, plans and objectives, are forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes", "estimates", "anticipates", "expects", "intends”, “may”, “will”, or “should” or, in each case, their negative or other variations or comparable terminology. Such forward- looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. Such risks, uncertainties and other factors include, among others: the level of expenditure committed to development and deployment applications by organisations; the level of deployment-related turnover expected by the Company; the degree to which organisations adopt web-enabled services; the rate at which large organisations migrate applications from the mainframe environment; the continued use and necessity of the mainframe for business critical applications; the degree of competition faced by the Company; growth in the information technology services market; general economic and business conditions, particularly in the United States; changes in technology and competition; and the Company's ability to attract and retain qualified personnel. These forward-looking statements speak only as at the date of this presentation. Except as required by the Financial Conduct Authority, or by law, the Company does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events, or otherwise. MICRO® FOCUS#3Agenda 01. Highlights 02. Financial Update 03. Operational Update 04. Business Outlook MICRO® FOCUS#4ㅁ Highlights wwwww#5Highlights FY21 a year of clear progress in Systems, Products and Go-to-Market transformation activities. ■ A material improvement in the rate of revenue decline. ■ Announced sale of Digital Safe business on financial terms that demonstrate value creation opportunities within our broad portfolio. ■ Strategic partnership with AWS reaches another key milestone with launch of the AWS Mainframe Modernisation preview solution at Re:Invent. Focused on exiting FY23 with a flat or better revenue trajectory, $400-500m of gross cost reduction and exit run-rate of $500m of adjusted free cash flow. MICRO® FOCUS#6O Financial Update wwwww#7Highlights FY21 financial results are consistent with November trading update. Revenue of $2.9bn; Adjusted EBITDA of $1.0bn; Adjusted free cash of $0.3bn. Digital Safe disposal now complete and cash proceeds of $375m received. We remain on track with the financial targets set by the business for FY23. Successful refinancing of $1.6bn term loan taking the average maturity of our debt from 2.7 years to 3.6 years. Final Dividend of 20.3 cents has been proposed, taking total dividend to 29.1 cents for the year. MICRO® FOCUS#8Financial performance MICRO® FOCUS Notes FY 21 Reported FY 20 CCY Change % 2,900 3,063 (5.3)% 1 (1,860) (1,876) (0.9)% Adjusted EBITDA 1,040 1,187 (12.4)% 35.9% 38.7% (2.8)ppt ☐ ☐ Revenue decline of 5% year-on-year on a CCY basis for FY21. Total costs (included within Adjusted EBITDA) reduced by 0.9%, with cost reductions used to fund increased investment in products. Adjusted EBITDA margin of 35.9%, representing a decline of 2.8ppts versus FY20. Exceptional costs in the income statement were $247m with a cash cost of $236m. Final Dividend of 20.3 cents has been proposed, taking total dividend to 29.1 cents for the year which is consistent with 5x covered approach. $m Revenue Total costs Adj. EBITDA % Other metrics Reported Reported Exceptional costs 2 247 3,012 91.8% Diluted adj. EPS (cents) 145 154 9 cents Final Div. per share (cents) 20.3 15.5 31.0% Notes 1. Included within Adjusted EBITDA. 2. FY20 exceptional costs includes impairment charge of $2.8bn. MICRO® FOCUS#9Revenue analysis by portfolio and stream Revenue by stream (y-o-y CCY %) $1,792m Revenue by Product Group (y-o-y CCY %) $689m $240m $180m 0.7% AMC ADM ITOM CyberRes IM&G -5.1% -9.5% -4.3% -5.1% Licence (+4.9%) Strong sales execution and yield from targeted investments beginning to flow through. Maintenance (-8.6%) Comprehensive changes from product to compensation made to provide foundations for improvement SaaS & other recurring (-3.8%) Continued improvement sequentially with new offerings launched and repositioning of existing offerings well advanced Consulting (-8.4%) Focused on supporting product deployments and delivering faster ROI for our customers. Product Group Underlying dynamics by portfolio consistent with Strategy Update. Performance on track in key sub-portfolios Maintenance performance key overall and specific sub-portfolio plans being executed Excluding Digital Safe SaaS grew 0.2% and IM&G declined by 2.5% MICRO® FOCUS#10Exceptional items (included within operating profit) HPE integration-related costs totalled $136m with the majority relating to the IT platform. No more exceptional costs are expected in relation to this programme. Other exceptional spend of $111m, include the cost of settling the Wapp patent infringement case. We announced the objective to remove a further c.$400m to c.$500m of gross annualised operating costs during FY22 and FY23. As a result, exceptional spend in relation to delivering these plans is expected to total $200m over the next two financial periods. $m MICRO® FOCUS System and IT infrastructure costs Integration, severance and property costs MF/HPE integration-related costs Legal settlement and associated costs Other restructuring property costs, severance and legal, acquisition and divesture costs Impairment charge Total exceptional costs Cash cost of exceptional spend above Tax deductions in relation to this spend EU State Aid Total cash cost of exceptional spend FY 21 FY 20 98 101 38 84 136 185 75 36 28 - 2,799 247 3,012 243 191 (54) (42) 47 236 149 MICRO® FOCUS#11Adjusted free cash flow impacted by 3 material items 1,040 Adjusted EBITDA Exceptional charges 1 Working capital (247) Interest (127) 2 Tax (220) Capex and leases Other (270) 25 56 (145) 3 Cash EU exceptional State Aid items 189 47 292 Free cash flow Adj. free cash flow MICRO® FOCUS#12Gearing and net debt Leverage profile 6.0x 1500 4,608 IFRS16 270 4,312 558 4,154 4,196 4,118 4,339 244 189 4.000 230 200 4,068 | $3,821 4,007 3,924 3,919 149 3,672 4.0x 3.6x 3.8x 3.5x 3.4x 3.2x $558m Cash and gross debt 0-2 years 2-3 years $(1,678)m 3-4 years $(1,287)m 4-5 years $(1,598)m Re-financing October 2019 April 2020 October 2020 April 2021 October 2021 Pro forma Reduction in leverage over the medium-term remains a key priority with target of 3.0x. Proceeds from disposal of Digital Safe are expected to reduce leverage. On a pro-forma basis, leverage at 31 October 2021 would have be 3.8x excluding Digital Safe. On 17 January 2022, we announced the refinancing of $1.6bn of our term loans. As a result, the average maturity of Micro Focus' debt has been extended from 2.7 years to 3.6 years. MICRO® FOCUS#13Financial guidance Revenue / CCY Costs included within Adj. EBITDA Exceptional spend Working capital Capex and leases Taxation and Interest Digital Safe Other On track to exit FY23 with flat or better revenues. No change in assumptions on FY22, with progress not expected to be linear. On track to exit FY23 with a c. $300m reduction in the cost base net of inflation. $100m per annum in FY22 and FY23. Adjusted cash conversion of 95-100% for FY22. Approximately $200m. Cash tax of approximately $130m. Cash interest of c. $230m (including upfront cost of refinancing). Disposal completed on 31 January 2022, so 3 months trading which is c.$25m revenue and Adjusted EBITDA of c.$13m. Net proceeds of $335m plus reduction in lease obligations of c.$40m. EBT purchase of 12m shares at estimated cost of approximately $70m. MICRO® FOCUS#14ㅁ Operational Update wwwww#15Progress against our transformation objectives The foundations are now in place, and we are at an inflection point Progress so far ... 1 One single enterprise-wide platform 23 3 Improved product positions across portfolio One single Go-to-Market organisation MICRO® FOCUS#16Strategic priorities for next two years Transition to product group operating model Improve agility and competitive positioning in target markets Continued focus on installed base Utilise the enterprise-wide platform Enable Customers to consume the innovation we deliver more comprehensively and consistently Improve operational flexibility and capture efficiencies MICRO® FOCUS#17Product Group summary Objectives Cyber Resilience (CyberRes) Application Modernisation & Connectivity (AMC) Application Delivery Management (ADM) IT Operations Management (ITOM) Sustain the growth momentum we have in applications, data and identity management and complete the re-positioning of ArcSight Continue to deliver for our existing customers and strengthen our leadership position in Application Modernisation both directly and through strategic partnerships such as AWS Build on core strengths in modern quality and agile development solutions and drive new innovation in support of the move to Value Stream Management underpinned by acceleration in SaaS Ensure our customer base can leverage the innovation already delivered, especially in Service Management, and accelerate the re-positioning of Service Assurance to AlOps and SaaS Information Management & Governance (IM&G) Keep executing the plan in Information Management and accelerate growth in Big Data driven by subscription and cloud revenues MICRO® FOCUS#18Business Outlook Revenue stabilisation Cost reduction Free cash flow generation A flat or better year-on- year revenue trajectory as we exit FY23 c.$400m - c.$500m gross annualised cost reduction c. $300m net of inflation. Equity Adjusted free cash flow run rate of c. $500m by the end of FY23 MICRO® FOCUS#19☐ MICRO FOCUS (R#20Appendix wwwww#21Appendix 1 -Improving transparency in our KPIs Closer alignment to statutory measures Revenue / CCY Exceptional spend Adjusted EBITDA Net Debt Updated approach Remains Constant Currency and adjusted for material acquisitions/disposals Only related to incremental M&A and cost reduction programme such as severance No additional HPE integration costs No longer adjusted to reverse out capitalised product development costs More consistent with Bank Credit Agreements Remains the same Free cash flow Remains the same Leverage ratio Net debt / Adjusted EBITDA MICRO® FOCUS#22Appendix 2 - Currency impact Revenue and Cost weighting across key currencies: FY 21 FY 20 Revenue Cost Revenue Cost Average exchange rate movements in the 12 months to October 21 vs the 12 months to October 20: USD 58.1% 49.4% 59.6% 48.9% USD to 1 EUR: USD is weaker by 6.0% EUR 20.6% 12.1% 20.3% 13.3% USD to 1 GBP: USD is weaker by 7.5% GBP 4.5% 11.3% 4.7% 11.5% USD to 1 CAD: USD is weaker by 7.0% CAD 3.1% 1.7% 3.1% 1.9% USD to 1 EUR USD to 1 GBP USD to 1 CAD 1.250 1.500 0.850 1.200 0.800 1.400 1.150 0.750 1.300 1.100 0.700 1.200 1.050 0.650 1.000 1.100 0.600 Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep 19 20 20 20 20 20 20 21 21 21 21 21 Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep 19 20 20 20 20 20 20 21 21 21 21 21 EUR 12m average GBP 12m average CAD Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep 19 20 20 20 20 20 20 21 21 21 21 21 12m average MICRO® FOCUS#23Appendix 3 - Revenue by product group and region CCY % change to FY20 SaaS and other recurring FY21 MICRO® FOCUS Licence Maintenance SaaS and other recurring Consulting Total Licence Maintenance $m AMC 155.3 315.9 Consulting Total 10.3 481.5 9.8% (3.2)% (1.0)% 0.7% ADM 106.1 408.5 78.9 18.6 612.1 2.1% (8.9)% 3.3% 13.4% (5.1)% ITOM 172.7 507.8 4.3 106.3 791.1 (2.7)% (11.3)% (17.3)% (10.8)% (9.5)% CyberRes 174.5 383.9 36.3 29.1 623.8 5.9% (9.5)% 6.5% (14.7)% (5.1)% IM&G 80.0 175.6 120.3 15.5 391.4 15.8% (7.6)% (10.2)% (4.3)% (4.3)% Revenue* 688.6 1,791.7 239.8 179.8 2,899.9 4.9% (8.6)% (3.8)% (8.4)% (5.3)% North America 303.7 870.0 182.3 58.9 1,414.9 9.5% (11.2)% (2.8)% (11.3)% (6.3)% International 272.7 713.9 46.0 94.2 1,126.8 0.0% (6.6)% (5.9)% (9.3)% (5.3)% Asia Pac & Japan 112.2 207.8 11.5 26.7 358.2 5.1% (4.6)% (12.2)% 2.7% (1.5)% Revenue* 688.6 1,791.7 239.8 179.8 2,899.9 4.9% (8.6)% (3.8)% (8.4)% (5.3)% *FY21 revenue includes $0.6m deferred revenue haircut MICRO® FOCUS#24☐ MICRO FOCUS (R