Total Growth Model: Cloud and ARR Growth
Slide Notes
Throughout this presentation, certain numbers are approximate and may not foot due to rounding
and are inclusive of AMC unless stated otherwise.
Slide 4
(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 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 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 12
(1) 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.
(2) Organic revenue growth is calculated by removing the revenue contribution from newly acquired
companies for the first year post acquisition.
(3) Annual Recurring Revenues (ARR) is defined as the sum of cloud services and subscriptions
revenues and customer support revenues.
Slide 15
(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) Based on F'13 to F'23 cumulative dividends paid, and common shares repurchased.
(2) Compound annual growth in dividends paid from F'13 to F'23.
(3) 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.
(4) Targeting dividends at rate of approximately 20% of TTM Free Cash Flow. 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.
Slide 22
(1) Annual Recurring Revenues (ARR) is defined as the sum of cloud services and subscriptions
revenues and customer support revenues.
(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. Historical data on a reported basis.
(3) Renewal rate excludes Carbonite, Zix and Micro Focus.
Slide 23
(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 Revenues (ARR) is defined as the sum of cloud services and subscriptions
revenues and customer support revenues.
(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 25.
(1) Term Loan B and Acquisition Term Loan are net of mandatory debt repayments.
(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) Consolidated Net Leverage Ratio (proforma) is calculated using bank covenant methodology.
Slide 26
(1) As of December 31, 2023.
(2) Annual Recurring Revenues (ARR) is defined as the sum of cloud services and subscriptions
revenues and customer support revenues.
(3) 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.
(4) Represents Micro Focus stand-alone renewal rates.
(5) Renewal rate excludes Carbonite, Zix and Micro Focus.
Slide 28
(1) Amounts represent estimated AMC unaudited historical pro forma revenues and adjusted EBITDA for
our Fiscal 2023 period ended June 30, 2023. For the period of July 1, 2022 to January 31, 2023 the
unaudited historical pro forma results are presented under International Financial Reporting Standards
(IFRS) and the results for the period of February 1, 2023 to June 30, 2023 are presented in accordance
with United States generally accepted accounting principles (U.S. GAAP). The estimated unaudited
historical pro forma revenues and adjusted EBITDA amounts do not include adjustments to convert IFRS
results from the period of July 1, 2022 to January 31, 2023 to U.S. GAAP.
(2) Subject to final adjustments upon closing of the transaction.
Slide 29
(1) Estimates based on the repayment of debt as outlined in this presentation and a SOFR rate
assumption as of report date.
(2) Consolidated Net Leverage Ratio (proforma) is calculated using bank covenant methodology.
(3) Term Loan B and Acquisition Term Loan are net of mandatory debt repayments. Debt repayment
timing within 90 days of AMC close.
Slide 30
(1) Total addressable market estimates (dollars in US$ billions) based on market reports from
independent industry analysis firms including Gartner and IDC.
(2) Amounts represent estimated AMC unaudited historical pro forma revenues and adjusted EBITDA for
our Fiscal 2023 period ended June 30, 2023. For the period of July 1, 2022 to January 31, 2023 the
unaudited historical pro forma results are presented under International Financial Reporting Standards
(IFRS) and the results for the period of February 1, 2023 to June 30, 2023 are presented in accordance
with United States generally accepted accounting principles (U.S. GAAP). The estimated unaudited
historical pro forma revenues and adjusted EBITDA amounts do not include adjustments to convert IFRS
results from the period of July 1, 2022 to January 31, 2023 to U.S. GAAP.
(3) Organic revenue growth is calculated by removing the revenue contribution from newly acquired
companies for the first year post acquisition.
(4) 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.
(5) Please refer to "Use of Non-GAAP Financial Measures" 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.
Slide 32
(1) Annual Recurring Revenues (ARR) is defined as the sum of cloud services and subscriptions
revenues and customer support revenues.
(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 33
(1) Projected as of February 1, 2024; this model is not guidance.
(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 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 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 is on a reported basis.
(7) Please refer to historical filings, including our Forms 10-K and 10-Q, regarding the company's
adjusted tax rate.
(8) Annual Recurring Revenues (ARR) is defined as the sum of cloud services and subscriptions
revenues and customer support revenues.
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