Market Expansion and Value Creation
Slide Notes
Slide 4
Throughout this presentation, certain numbers may not foot due to rounding
(1) Estimates (dollars in US$ billions) based on market reports from independent industry analysis firms
including Gartner and IDC..
(2) Constant currency for this purpose is defined as the current period reported
revenues/expenses/earnings represented at the prior comparative period's foreign exchange rate.
(3) Enterprise cloud bookings means the total value from cloud services and subscription contracts
entered into in the fiscal year that are new, committed and incremental to our existing contracts, entered
into with our enterprise-based customers.
(4) Organic growth is calculated by removing the revenue contribution from newly acquired companies
for the first-year post acquisition.
(5) Please refer to "Use of Non-GAAP Financial Measures" at the end of this presentation and
"Reconciliation of selected GAAP-based measures to Non-GAAP-based measures" included within our
current and historical filings on Forms 10-Q, 10-K and 8-K.
(6) Free Cash Flows on a reported basis.
Slide 7 ..
(1) Targeting net leverage ratio of < 3x based on bank covenant methodology.
(2) Targeting dividends at rate of approximately 20% of TTM Free Cash Flow. Declaration of dividend
subject to Board discretion.
Slide 8
(1) Annual recurring revenue (ARR) as a % of total revenues and is defined as the sum of cloud
services and subscriptions revenue and customer support revenue.
(2) F'24 target year-over-year revenue growth percentage in constant currency.
(3) F'26 aspirational revenue represents OpenText's estimate of Total Revenues in constant currency.
Slide 9
(1) Please refer to "Use of Non-GAAP Financial Measures" at the end of this presentation and
"Reconciliation of selected GAAP-based measures to Non-GAAP-based measures" included within our
current and historical filings on Forms. 10-Q, 10-K and 8-K. Historical data on a reported basis.
(2) Open Text's F'24 target A-EBITDA margin and F'26 aspirational EBITDA margin in constant currency.
Slide 10
(1) Please refer to "Use of Non-GAAP Financial Measures" at the end of this presentation and
"Reconciliation of selected GAAP-based measures to Non-GAAP-based measures" included within our
current and historical filings on Forms 10-Q, 10-K and 8-K. Historical data on a reported basis.
(2) OpenText's F'24 target FCF and F'26 aspirational FCF in constant currency.
Slide 11
(1) Strategy subject to change based on acquisition opportunities or other corporate purposes.
Corporate purposes may include acquisitions, debt repayment, share repurchases, or other initiatives.
(2) Targeting dividends at rate of approximately 20% of TTM Free Cash Flow. Declaration of dividend
subject to Board discretion.
(3) Based on F'13 to F'23 cumulative dividends paid, and common shares repurchased.
(4) Compound annual growth in dividends paid from F'13 to F'23.
(5) Targeting annualized dividend of $1.00 per share, subject to quarterly Board approval. Assumes
weighted average common share count of 273.1 million for F'24.
Slide 13
(1) Enterprise cloud bookings as the total value from cloud services and subscription contracts entered
into in the fiscal year that are new, committed and incremental to our existing contracts, entered into with
our enterprise-based customers.
(2) CC: Constant Currency for this purpose is defined as the current period reported
revenues/expenses/earnings represented at the prior comparative period's foreign exchange rate.
(3) Annual Recurring Revenue (ARR) is defined as the sum of cloud services and subscriptions revenue
and customer support revenue.
(4) Please refer to "Use of Non-GAAP Financial Measures" at the end of this presentation and
"Reconciliation of selected GAAP-based measures to Non-GAAP-based measures" included within our
current and historical filings on Forms 10-Q, 10-K and 8-K.
(5) Renewal rate excludes Carbonite, Zix and Micro Focus.
Slide 16
(1) Consolidated Net Leverage Ratio (proforma) is calculated using bank covenant methodology.
(2) Please refer to "Use of Non-GAAP Financial Measures" at the end of this presentation and
"Reconciliation of selected GAAP-based measures to Non-GAAP-based measures" included within our
current and historical filings on Forms 10-Q, 10-K and 8-K.
(3) Excludes repurchases of common shares in connection with the settlement of awards under the
company's long-term incentive plan or other plans.
(4) Corporate purposes may include acquisitions, debt repayment, share repurchases, or other
initiatives.
(5) Term Loan B and Acquisition Term Loan are net of mandatory debt repayments only.
Slide 17
(1) Includes 5 months of Micro Focus revenue for the period ended June 30, 2023.
(2) Estimates based on market reports from independent industry analysis firms including Gartner and
IDC.
Slide 18
(1) Organic revenue growth is calculated by removing the revenue contribution from newly acquired
companies for the first year post acquisition.
(2) Constant currency is defined as the current period reported revenues represented at the prior
comparative period's foreign exchange rate.
Slide 20
(1) Projected as of August 3, 2023; this model is not guidance.
(2) CC: Constant Currency for this purpose is defined as the current period reported
revenues/expenses/earnings represented at the prior comparative period's foreign exchange rate.
(3) Enterprise cloud bookings is the total value from cloud services and subscription contracts entered
into in the fiscal year that are new, committed and incremental to our existing contracts, entered into with
our enterprise-based customers.
(4) Organic revenue growth is calculated by removing the revenue contribution from newly acquired
companies for the first year post acquisition.
(5) Please refer to "Use of Non-GAAP Financial Measures" at the end of this presentation and
"Reconciliation of selected GAAP-based measures to Non-GAAP-based measures" included within our
current and historical filings on Forms 10-Q, 10-K and 8-K.
(6) FCF on a reported basis.
(7) Annual Recurring Revenue (ARR) is defined as the sum of cloud services and subscriptions revenue
and customer support revenue.
(8) Please refer to historical filings, including our Forms 10-K and 10-Q, regarding the company's
adjusted tax rate.
Slide 21
(1) Annual Recurring Revenue (ARR) is defined as the sum of cloud services and subscriptions revenue
and customer support revenue.
(2) Please refer to "Use of Non-GAAP Financial Measures" at the end of this presentation and
"Reconciliation of selected GAAP-based measures to Non-GAAP-based measures" included within our
current and historical filings on Forms 10-Q, 10-K and 8-K.
Slide 22
(1) As of August 3, 2023. Estimates represent when savings, expenses and charges are expected to be
substantially actioned or incurred. Subject to change.
(2) Please refer to "Use of Non-GAAP Financial Measures" at the end of this presentation and
"Reconciliation of selected GAAP-based measures to Non-GAAP-based measures" included within our
current and historical filings on Forms 10-Q, 10-K and 8-K.
(3) Actioned includes notified.
Slide 23
(1) Consolidated Net Leverage Ratio (pro forma) is calculated using bank covenant methodology.
(2) Excluding mandatory debt repayments.
Slide 24
(1) Revenue and Enterprise Cloud Bookings % are year-over-year comparisons.
(2) Enterprise cloud bookings as the total value from cloud services and subscription contracts entered
into in the fiscal year that are new, committed and incremental to our existing contracts, entered into with
our enterprise-based customers.
(3) Organic revenue growth is calculated by removing the revenue contribution from newly acquired
companies for the first year post acquisition.
(4) Annual Recurring Revenue (ARR) is defined as the sum of cloud services and subscriptions revenue
and customer support revenue.
(5) Please refer to "Use of Non-GAAP Financial Measures" at the end of this presentation and
"Reconciliation of selected GAAP-based measures to Non-GAAP-based measures" included within our
current and historical filings on Forms 10-Q, 10-K and 8-K.
(6) FCF is on a reported basis.
(7) Declaration of dividend subject to board discretion. Strategy subject to change based on acquisition
opportunities or other corporate purposes. Corporate purposes may include acquisitions, debt
repayment, share repurchases, or other initiatives..
(8) Please refer to historical filings, including our Forms 10-K and 10-Q, regarding the company's
adjusted tax rate.
Slide 25
(1) Please refer to "Use of Non-GAAP Financial Measures" at the end of this presentation and
"Reconciliation of selected GAAP-based measures to Non-GAAP-based measures" included within our
current and historical filings on Forms 10-Q, 10-K and 8-K.
(2) F'24 Target and F'26 Aspirations as of August 3, 2023. Subject to change.
(3) Compound annual growth in free cash flows from F'23 to F'26.
Slide 36
(1) Based on internal OpenText estimates.
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