Micro Focus Fixed Income Presentation Deck
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Portfolio Positioning and Approach in Context of the
Software Industry (cont'd)
Micro Focus specialises in managing mature infrastructure software assets which have been delivering
value to significant numbers of customers over long periods of time
Micro Focus approach
Product portfolio characteristics
• Broad based - covering all industrial sectors
. Significant numbers of customers
. Significant maintenance streams
Relatively high switching costs
• Significant market positions
.
Four box model
New Models
Products that are relatively new and unproven in the market but
expected to be growth drivers
Optimise
Products with declining sales over a period of time, and the
strategy is to move back to core OR manage decline and
optimize returns in the long run
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'Fund of funds' approach to product portfolio
Investment and focus driven by four-box model
Objective: modest growth over medium-term, high levels of
profitability, strong cash flow
Delivered through: efficient and focused investment
across portfolio
Growth Drivers
Products that have shown consistent potential for sales growth
Core
Products that have maintained "flat sales' over time with limited
growth, but are central to the company's revenues
MICRO
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