OpenText Mergers and Acquisitions Presentation Deck
Growth Opportunity: Annual Recurring Revenue
Uplift Micro Focus Customers to the Cloud and Apply Open Text Best Practices to Renewals
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Compelling Products and Customer Satisfaction are the Foundations for Growth
opentext™
Open Text
ARR (1)
F'22
$2.9B
82%
of total revenue
94%
Renewal Rate (2)
Micro Focus
ARR (3)
$1.8B
69%
of total revenue
Opportunity
Renewal Rate
OpenText Best Practices
Feature-rich product releases
• Premium support offerings including security updates
Annual price adjustments
First year maintenance
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• Extended support offerings
Direct customer engagement
Compelling self-service applications and tools
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Every 100 bps of improvement in Micro Focus' Renewal rate is worth $15M-$20M in incremental revenue at high margin
Every 400 bps of net renewal rate uplift is worth approximately 1% of incremental organic growth to combined company
1. Annual recurring revenue (ARR) is defined as the sum of cloud services and subscriptions revenue and customer support revenue
2. Average renewal rates for off-cloud and cloud for the full fiscal year ended June 30, 2022
3. ARR is defined as the sum of SaaS and other recurring and Maintenance revenues. Pro forma TTM revenue represents Micro Focus' unaudited proforma revenue for the twelve months ended April 30, 2022, excluding
Digital Safe revenue
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