Micro Focus Fixed Income Presentation Deck
Portfolio Positioning and Approach in Context of the
Software Industry
Product lifecycle
New tech models
8
"Me too" models
Introduction
Growth
Nature of software
• Innovative and often disruptive technologies
High capex and R&D
User base rapidly expanding, products repeatedly enhanced
Investment strategy and valuation
. Investing in growth = valuation and returns
Rich valuations
Area of primary focus
Potential change in
trajectory (return to growth)
Maturity
Reduce rates of decline
Decline
1 Nature of software
Infrastructure software: embedded products with high switching costs
Limited growth capex
Margin expansion and efficiency opportunities
Investment strategy and valuation
Returns driven by maximizing cash flow
Lower valuations
Software company leading consolidation in the mature infrastructure software market to win
through operational efficiency and scale
MICRO
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