Slide 1: Investor Day Presentation
Investor Day Presentation NASDAQ: OTEX | TSX: OTEX March 1, 2022
Slide 2: Agenda: 11:00 am to 2:30 pm ET
Agenda: 11:00 am to 2:30 pm ET Presenters Topic Harry E. Blount, SVP, Investor Relations Welcome and Safe Harbor Mark J. Barrenechea, CEO & CTO Strategy & Direction Muhi Majzoub, EVP, Chief Product Officer Product Strategy Simon “Ted” Harrison, EVP, Enterprise Sales Enterprise Growth Strategy James
Slide 3: Safe Harbor and IP Statement
Safe Harbor and IP Statement This presentation contains forward-looking statements. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other applicable securities laws of the United States and Canada. All state
Slide 4: GROW with OpenText
GROW with OpenText Mark J. Barrenechea, OpenText CEO & CTO
Slide 5: OpenText in a Snapshot
OpenText in a Snapshot (NASDAQ/TSX:OTEX) As of Q2 FY’22 TTM Leader in Content Management 40 of top 50 Supply Chains Total ARR(2) % of Cloud Revenues Total Revenue Revenue Leader in Business Network 75K Enterprise Customers ~$3.4B 81% ~$1.4B $92B Total Addressable Market(1) 818K SMB Customers Total R
Slide 6: OpenText Advantaged Assets and Capabilities
OpenText Advantaged Assets and Capabilities Cloud Editions Run Anywhere | Off-Cloud | Private-Cloud | Public Cloud | API-Cloud Strategic Partners • Country scale: Customers in 100+ countries 1M+ trading 23,000 partners MSP’s • Account scale: 66% Global 10K coverage • Speed: New cloud releases every
Slide 7: Our Strategic Priorities
Our Strategic Priorities Existing Future Cloud New 1 Portfolio 2 Platform 3 Markets Continue to transition our Create compelling cloud solutions Expand our addressable market significant & valuable install-base that drive growth and are simple, and deliver great outcomes to the cloud frictionless th
Slide 8: Information Management Market Segmentation
Information Management Market Segmentation Small Medium Mid-Market Large CY’22 Market Size $B Business Business Enterprise Enterprise TAM(1) CY’22-25 CAGR % <100 employees 100-499 employees 500-999 employees 1000+ employees Content $4.3B $4.1B $2.6B $13.0B $24.0B Services 10% 11% 11% 11% 11% Market
Slide 9: Digital Investment to Grow 17% Through 2024
Digital Investment to Grow 17% Through 2024 Reinforces OpenText’s Relevance and Imperatives of Information Management in $ Trillion IDC FutureScape: Worldwide Digital Transformation 2022 Top 10 Business transformation is information-led Higher Decarbonization Double-Digit Investment and Digital Digi
Slide 10: Sustainability is Both an OpenText Core Value and Secular Growth Driver
Sustainability is Both an OpenText Core Value and Secular Growth Driver We are committing to zero waste from operations “We are empowering our business ecosystem, helping them transition to be more sustainable” Zero “We will halve our greenhouse gas Waste emissions by and reach net zero by 2050” Adv
Slide 11: The OpenText Business System: How We Create Value
The OpenText Business System How We Create Value Our Shareholder Value Creation Model Total Ecosystem Innovation Building Operating model profitability Disciplined strategic acquisitions Best Total Operational Teams Growth Excellence Capital efficiency & returns Inclusion Sustainability Cash based r
Slide 12: Our Vision is Clear in Information Management
Our Vision is Clear in Information Management Business Clouds The Digital Zone Resources & Content Capture & Ecosystem Data Single Sign-On Digital Business Industrial IoT Enablement Management Archiving Integrations Management & Integration Solutions Security Identify & Collaboration & Industry Supp
Slide 13: Our Vision is Clear in Information Management
Our Vision is Clear in Information Management Integrated to your business applications, Mid-market with focused GTM 1,700 Private cloud customers industry-specific, comprehensive New public cloud solutions 300 Enterprise SaaS customers “Connect once, reach anything” IBM competitive play 35K+ Custome
Slide 14: Why Cloud Acceleration Efforts Matter
Why Cloud Acceleration Efforts Matter Positions us well in fast growing markets Customers achieve faster path to value in their transformations Enables ease of use and increased consumption by customers Comparatively low friction in go-to-market motion Allows for more rapid entry into new markets /
Slide 15: How We Go-to-Market and Our Progress
How We Go-to-Market and Our Progress • New cloud platform & innovations across 5 clouds Large OpenText • Full G10K covered by end of CY’23 Enterprise Direct Sales • Summit program growth: top customers & ecosystems Global Accounts 1000+ employees Enterprise Accounts • Competitive replacements Corpor
Slide 16: Powerful Renewal Engine
Powerful Renewal Engine Acceleration Into the Cloud Enables an Expansion Focus Independent renewals organization empowered to grow and make the right decisions for customers. Cloud accelerates our opportunity to deliver revenue expansion and continuous update services. $2.7B 125K 318% Over 30% autom
Slide 17: Deeply Talented and Experienced Leadership Team
Deeply Talented and Experienced Leadership Team Mark J. Madhu Muhi Ted James Prentiss Kristina Barrenechea Ranganathan Majzoub Harrison McGourlay Donohue Lengyel CEO & CTO EVP, CFO EVP, EVP, EVP, EVP, SMB/C Sales EVP, Menlo Park, CA Menlo Park, CA Chief Product Officer Enterprise Sales International
Slide 18: Highly Skilled Board of Directors
Highly Skilled Board of Directors Diverse Skills Senior Leadership Tom Mark J. Randy Major General Gail Robert (Bob) Governance Jenkins Barrenechea Fowlie David Fraser Hamilton Hau Global Expertise Chair CEO & CTO Sapphire Health Board Canadian Forces Arrow Electronics Fiserv, Inc. Technology & Inno
Slide 19: Financially Positioned for Continued M&A Growth
Financially Positioned for Continued M&A Growth (US$) (US$M) Available for Dividends and corporate anti-dilutive $812 purposes share buyback $2.3B ~ 33% $445 TTM 24% of Revenue Free Cash 24% of ~ 67% Flows Revenue 2.0x FY’15 FY’21 1. Please refer to “Use of Non-GAAP Financial Measures” in the Q2 FY’
Slide 20: Strong Capital Return and Debt Structure
Strong Capital Return and Debt Structure (US$M) • 33% TTM FCF via dividends & buyback(3) Dividends Paid (7-year CAGR): 16%(1) $210.1 • 67% TTM FCF available for corporate purposes including M&A $119.1 Shares Repurchased Dividends Our Senior Notes are Fixed Rate and Do Not Vary with Inflation $65.5 $
Slide 21: FY'22 OpenText Total Growth Strategy
FY’22 OpenText Total Growth Strategy(1) (1) (2,3) FY’21 Actual FY’22 $1,407.4 Cloud 8% - 10% Double-digit cloud revenue and Zix contribution $1,334.1 Customer Support Constant Continued strong renewals $2,741.5 ARR Low mid single-digit 81% of revenue, predictable recurring business Off-cloud demand
Slide 22: FY'24 Medium-Term Aspirations
FY’24 Medium-Term Aspirations Organic Growth(1) 2% - 4% Strategic GROW with OpenText programs ARR 85% Growth in cloud as a percent of total % of Total Revenue Mid-90s Customer Support renewals and cloud subscriptions A-EBITDA(2) 38% - 40% Improved margin through growth, scale and automation (margin)
Slide 23: Our Longer-Term Aspirations In Information Management
Our Longer-Term Aspirations In Information Management Longer-Term Aspirations in Every Cloud in Free Cash Up to 4% Organic Growth Plus M&A Flows(1) 1. Represents estimated cumulative FCF. Please refer to “Use of Non-GAAP Financial Measures” in the Q2 FY’22 investor presentation (Feb 3, 2022) and “Re
Slide 24: GROW with OpenText
GROW with OpenText Muhi Majzoub, EVP, Chief Product Officer
Slide 25: Key Messages
Key Messages We are the clear market leader in Accelerating our investment and Information Management positioned growth in the cloud for growth We believe the edge is as important Customers are moving from systems of as the cloud record to systems of information Every customer has made a multi- Inve
Slide 26: The Future Cloud Platform for Information Management
The Future Cloud Platform for Information Management And Our Strong Track Record of Innovation Red Oxygen Blue Carbon Cloud Editions The Ultimate Future Drivers (2013) (2015) (2020) Cloud (2022) Open & integrated Information Management Five new product Designing 4 different Applications One GTM for
Slide 27: Information Management: Investing to Win
Information Management: Investing to Win Future: 80%+ of Our Investments Will be in Cloud Technologies 4,500+ Developers R&DA-EBITDA Investment up 4x over 8 years Margin (1)(2) ($ and in % of Total Revenues)(1)(2) 90 Days R&D% of Total Revenues 12.2% New Releases 12.2% R&D US$ 11.7% 10.5% 1,000+ $19
Slide 28: OpenText Cloud is Leading in the Market
OpenText Cloud is Leading in the Market Market Market Leader Leader Master Modern Digitize the IDC MarketScape: Forrester Wave™: Work Content Platforms, Supply Chain Worldwide Multi-Enterprise Supply Chain Commerce Q2 2021 Networks, 2021 Market Market Leader Leader Power Modern IDC MarketScape: Be C
Slide 29: Our Vision is Clear in Information Management
Our Vision is Clear in Information Management Business Clouds The Digital Zone Resources & Content Capture & Ecosystem Data Single Sign-On Digital Business Industrial IoT Enablement Management Archiving Integrations Management & Integration Solutions Security Identify & Collaboration & Industry Supp
Slide 30: Customers Creating Information-Led Transformations
Customers Creating Information-Led Transformations Becoming a fully Unlocking the power of Delivering seamless Protecting customers Facilitating access digital enterprise in food to enhance the customer experiences from malicious to social assistance order to deliver the quality of life with a at sc
Slide 31: Growth: Master Modern Work
Master Modern Work Content Capture & Ecosystem Management Archiving Integrations Why OpenText: Secure Collaboration Industry Growth • Viewing & Signature Solutions Mid-market expansion Robust innovation roadmap Replace large incumbents with public cloud solutions, geo Dedicated sales team expansion
Slide 32: Growth: Digitize the Supply Chain
Digitize the Supply Chain Digital Data Industrial IoT Business Management Solutions Integration & Security Identify & Why OpenText: Supply Chain Procure-to-Pay Growth Access • IBM competitive play (SPS Commerce) Optimization Order-to-Cash Management Full-suite innovation roadmap Expanded sales cover
Slide 33: Growth: Power Modern Experiences
Power Modern Experiences Customer Customer Analytics, AI & Digital Fax Communications Insights Why OpenText: Voice & Process & Digital Asset Growth Contact Collaboration Center Management • Forward-looking innovation Google partnership Growth in sales coverage roadmap with predictive Migration with
Slide 34: Growth: Be Cyber Resilient
Be Cyber Resilient Endpoint Data Protection, Endpoint and Detection & Backup & Network Security Response (EDR) Migration Why OpenText: Digital Threat Intelligence Email Growth Investigations & Forensics Services Encryption • Joint innovation roadmap in Competitive plays Microsoft partnership deliver
Slide 35: Growth: Build the API Economy
Build the API Economy Capture & Store & Analyze Process & Digitize Manage & Report Automate Why OpenText: Growth Protect Search & Manage & View & Discover Secure Communicate & Secure • Targeted innovation roadmap OEM & embedded IP partners New Professional Services practice with unique blend of APIs
Slide 36: Our Strategic Priorities are Clear
Our Strategic Priorities are Clear Build the cloud platform of the future: Be #1 in every cloud 80%+ of future investments will be in cloud technologies Leverage partners to support multi-cloud: Go faster: developers, features, Google, Microsoft, AWS, SAP, etc. customers Deliver frictionless custome
Slide 37: GROW with OpenText
GROW with OpenText Ted Harrison, EVP, Enterprise Sales
Slide 38: Key Messages
Key Messages >1,000 enterprise salespeople Global 10K coverage increased to covering 42 countries 66% Summit program - top OpenText Selling across enterprise and customers and top supply chains mid-market Partners are a force multiplier Cloud bookings are in high growth OpenText ©2022 All rights res
Slide 39: How We Go-to-Market and Our Progress
How We Go-to-Market and Our Progress • New cloud platform & innovations across 5 clouds Large OpenText • Full G10K covered by end of CY’23 Enterprise Direct Sales • Summit program growth: top customers & ecosystems Global Accounts 1000+ employees Enterprise Accounts • Competitive replacements Corpor
Slide 40: New Customers: Broadening our Global 10K Coverage
New Customers: Broadening our Global 10K Coverage G10K(1) Coverage Increased to 66% Current Coverage • Marquee customers with transformative Europe requirements North America 75% Japan • 5,800 covered in FY’21, 88% 34% tracking 6,600 in FY’22 Emerging • On track to reach full Markets APAC coverage (
Slide 41: The World's Leading Companies Trust OpenText
The World’s Leading Companies Trust OpenText As our top customers accelerate to digital, we accelerate with them Consumer Life Sciences Financial Technology Manufacturing Telecom Goods 10 of 8 of 10 of 10 of 10 of 8 of top 10 top 10 top 10 top 10 top 10 top 10 OpenText Summit Program: Our 100 larges
Slide 42: Summit Program: Connecting to 80% of Gartner's 2021 Top 50 Supply Chains
Summit Program: Connecting to 80%(1) of Gartner’s 2021 Top 50 Supply Chains ✓ 1.2. Colgate Cisco 26. CVS Health 25 ✓ 3. JohnsonPalmolive ✓ 27. GlaxoSmithKline ✓ 4. Schneider& Electric Johnson ✓ 28. Reckitt Benckiser ✓ 5. Nestlé 29. H&M Supply Chain Top 25 ✓ 6. Intel ✓ 30. Kimberly Clark ✓ 7. PepsiCo
Slide 43: GROW OpenText Opportunities
GROW OpenText Opportunities Competitive Migrate Install-Base New 33% Takeouts R16 to Cloud Editions Customers and Workloads • IBM Sterling Commerce • Strong momentum in • Majority of new Install-Base Using • IBM FileNet cloud bookings customers are on cloud Cloud Editions • SPS Commerce Expanding Ne
Slide 44: Partners: A Force Multiplier
Partners: A Force Multiplier • Supporting • Top cloud & • Public cloud customers who have off-cloud partner partnership chosen Microsoft • Highest growth • Joint GTM with • Leading partnership cloud Workspace with SMB/C New Partnerships • OpenText’s largest • Deepen • ServiceNow cloud platform relat
Slide 45: GROW with OpenText – Recent Wins
GROW with OpenText – Recent Wins New New SAP Cloud R16 → Cloud Core API Customer Customer Partner Editions Content Win Beat IBM Beat IBM • Content Cloud with • OpenText’s xECM • One of the largest • OpenText to • A departmental use • Increased Salesforce.com integrated with nuclear operators in mana
Slide 46: Our Strategic Priorities Are Clear
Our Strategic Priorities Are Clear Summit programs: grow top customers and supply chain GROW partners: our force multiplier accounts Migrate install-base Competitive takeouts R16 → Cloud Editions Full Global 10K coverage by end of Winning new customers and new CY’23 markets OpenText ©2022 All rights
Slide 47: GROW with OpenText
GROW with OpenText James McGourlay, EVP, International Sales
Slide 48: Key Messages
Key Messages Summit programs: GROW top Migrate install-base customers and top supply chain R16 → Cloud Editions accounts Business Network expansion Deepen and expand partnerships Continue to invest in proven Double sales coverage successful countries OpenText ©2022 All rights reserved 48
Slide 49: Foundation for Growth: International Sales Region
Foundation for Growth International Long-Term Sales Region $18.6B +10% +15% Aspiration TAM(1) Market growth Cloud growth ~10% Double our of OpenText International revenue 5 of top 10 35% 450 Sales Region Revenue GDPs Coverage of the Sales 3,845 international professionals sales region G10K accounts
Slide 50: International Sales Region Coverage
International Sales Region Coverage Sub- Global 10K G10K Countries TAM(1) region Accounts Coverage Australia, New Zealand, India, Korea, APAC Singapore, Indonesia, 875 54% $5.7B Philippines, Vietnam Japan Japan 1,170 34% $4.5B Greater China, Hong Kong, China Taiwan & Macao 758 24% $2.5B Brazil, Mexi
Slide 51: GROW With OpenText Opportunities
GROW With OpenText Opportunities Summit Programs Migrate Install-Base Business Network 35% R16→Cloud Editions Expansion Coverage of G10K accounts in • 3,845 of G10K accounts • 21% of international accounts • Deepen penetration into international sales region on Cloud Editions existing supply chain e
Slide 52: Customer Success Stories
Customer Success Stories R16→Cloud Editions Optimize Accelerates Streamline Content Omnichannel Customer Business Partner Shipping Management Experience Invoicing Onboarding Expanding • Digitally interact • Enhanced customer • B2B Managed • Serving citizens • Seamless digital Partners as a • with 18
Slide 53: Continued Growth in Key Regions
Continued Growth in Key Regions Japan • Expand and deepen Middle East and $4.5B TAM customer coverage Africa 34% G10K • Drive information-led $1.7B TAM Coverage transformations 33% G10K • Leverage and expand partner relationships Coverage • SMB/C rapid growth APAC $5.7B TAM 54% G10K Coverage OpenTex
Slide 54: Our Strategic Priorities are Clear
Our Strategic Priorities are Clear Deepen footprint to accelerate Migrate install-base growth in international markets R16 → Cloud Editions Utilize OpenText global strength to Full Global 10K coverage by end of enable growth CY’23 Long-term aspiration: Partners as a force multiplier double internati
Slide 55: GROW with OpenText
GROW with OpenText Paul Duggan, EVP, Renewals
Slide 56: Key Messages
Key Messages Growth by One team transformative engagement Growth by Proven value retention and expansion Growth by Scaling with AI/ML update, security and other services OpenText ©2022 All rights reserved 56
Slide 57: Renewals at OpenText
Renewals at OpenText Centralized & Highly-Focused Increase in ARR(1) Over Information Mgmt. Renewals Organization Past 10 years $2.7B 125K FY’21 Annual Agreements Recurring Revenue(1) 318% $2.7B (2) 425 90%+ $657M Renewal FY’21 Customer Professionals Support Margins FY’12 F12 FY’21 F21 1. Annual Rec
Slide 58: Be Deserving of Trust
Be Deserving of Trust Support CSAT Scores FY’15 to Present renew verb to make like new : restore to freshness, to begin again. revive: restore, bring back. re·new | \ ri-ˈnü regenerate: restored to a better, higher, state 96% • Renewing is a decision, not a transaction • Trust takes years to build,
Slide 59: Delivering Proven & Sustained Value
Delivering Proven & Sustained Value Renewal Resilience & OpenText Renewal Rates(1) Are Stable and Unwavering Operational Excellence Despite an Unpredictable World • Continuous updates & innovation • Robust systems & cadence • Disciplined pricing practices • Flexible support programs • Policy, contro
Slide 60: Our Next Altitude in the Cloud
Our Next Altitude in the Cloud Planning Imperatives Transformative Retention & Engagement Expansion • Complete the transition from renewals to customer management via automation • New retention, expansion, and cross-selling programs to unlock growth • Dedicated organization to lead cross Cross-Sell
Slide 61: Growth by Transformative Engagement
Growth by Transformative Engagement Renewals Representatives 2x Customer Manager Capacity From: To: FY’22 Transactional Consumption Renewal & Expansion FY’23+ Customer Manager Launch self service portal Centralize process in Digital Renewal Center Deploy Customer Managers across enterprise OpenText
Slide 62: Growth by Retention and Expansion
Growth by Retention and Expansion Long-Range Risk Off-Cloud Support Cloud Expansion Management and Programs and Pricing at Renewal Programs Early identification of the risk in our Annual Price Adjustment and Proactive monitoring and outreach contract base as well as potential Extended Support progra
Slide 63: Growth by Cross-Sell & Upsell
Growth by Cross-Sell & Upsell Successful Lead Pass Program Creating New Paths to Growth • Generated incremental cloud bookings in the • Managed Services & OnDemand Messaging into B2B Cloud first half of FY’22 via lead pass from • IAM/IoT to Business Networks Customer Managers • SMB and Zix opportuni
Slide 64: Business Practices: The Inches Are All Around Us
Business Practices: The Inches Are All Around Us Quality of Systems Sale Integrated Contracting Annual Price Dashboards Business Adjustment Onboarding & Enablement Insights + AI Growth is Granular • Collectively these areas can bring an additional 100-200 bps of renewal rate improvement • Drives how
Slide 65: Our Strategic Priorities are Clear
Our Strategic Priorities are Clear One team, deserving of trust, Automate the process, so humans proven value can add more value Upper quartile performance for a Create an expansion business in renewal/expansion organization cloud renewals Deploy more AI/ML & continuous Invest in the install-base, c
Slide 66: GROW with OpenText
GROW with OpenText Prentiss Donohue, EVP, SMB/C Sales
Slide 67: Key Messages
Key Messages 23,000 MSPs Established SMB Powerhouse One of the largest SMB channels Security remains high priority Strategic relationship with Microsoft for SMBs OpenText ©2022 All rights reserved 67
Slide 68: How We Go-to-Market and Our Progress
How We Go-to-Market and Our Progress • New cloud platform & innovations across 5 clouds Large OpenText • Full G10K covered by end of CY’23 Enterprise Direct Sales • Summit program growth: top customers & ecosystems Global Accounts 1000+ employees Enterprise Accounts • Competitive replacements Corpor
Slide 69: Powerful Industry Trends
Powerful Industry Trends SMBs represent a huge growth SMBs are vulnerable to cyber Microsoft opportunity for OpenText attacks due to lack of IT skills Partnership 94% ~53% 44% 66% of malware sent via email, common of SMBs take weeks, months or years to ~90% Productivity Suites(4) of US GDP(1) of new
Slide 70: Welcome Zix!
Welcome Zix! Snapshot Solution / Platform Overview Founded / Email Security & Data Protection and HQ / • 1988 / Dallas TX / 525 Microsoft go-to partner for SMBs Headcount (via AppRiver Acquisition, 2019) • 50% of business is from re-selling Solution M365 solutions (one of 9 Offerings recognized CSPs
Slide 71: Foundation for Growth – SMB Powerhouse
Foundation for Growth – SMB Powerhouse Carbonite (including Webroot & Brightcloud), Zix (including AppRiver) 23,000 1,881 818K 147 MSPs VARs Businesses Supported OEMs +26% this FY +38% this FY +12% this FY 17 New last FY +14% Products & Solutions Ecosystem Talent Cyber Resilience • 23,000 MSPs • 17
Slide 72: SMB At Scale: Positioned for Faster Growth
SMB At Scale: Positioned for Faster Growth Scaled SMB Presence in 2 Years Major Partnerships $36B TAM(1) ~8% CAGR Major Enhanced Enhanced New More End-point Stronger anti- Commerce Products, Product ransomware consumer protection experience- Experience Partners and Releases efficacy protection (NCE)
Slide 73: The Threat Intelligence Foundation
The Threat Intelligence Foundation BrightCloud ® URLs 43B+ Continuously and automatically Domains 999M+ analyzes and interprets threat data using advanced machine Active Mobile Apps 37M+ learning and artificial intelligence Real World-Sensors 285M+ File Behavior Records 37B+ IP Addresses (IPv4 and I
Slide 74: Microsoft is a Strategic Partner to OpenText
Microsoft is a Strategic Partner to OpenText Scale Engagement & Cross-sell/ and Growth Conversion Upsell Secure Email OpenText is a 88,000 M365 Cloud Backup Top 5 CSP Contracts Endpoint Backup Secure File Share in North America SAT DNS OpenText ©2022 All rights reserved 74
Slide 75: Our Strategic Priorities are Clear
Our Strategic Priorities are Clear #1 SMB security New MSP partners Digital Zone for partners provider Accelerate Microsoft M&A into MSPs, with our IP OpenText ©2022 All rights reserved 75
Slide 76: GROW with OpenText
GROW with OpenText Doug Parker, EVP, Corporate Development
Slide 77: Key Messages
Key Messages M&A is a core function at OpenText: M&A is strategic to OpenText and we own and invest in our own M&A helped establish our leadership in team and capabilities Information Management Future M&A aligned with TAM We have the financial strength and segmentation, focused on growth flexibilit
Slide 78: Foundation for Growth
Foundation for Growth Shaping the company through strategic M&A aligning to key markets and adjacencies Content Services Business Network Digital Selected Experience HP assets Security & Protection Content Management to Evolution from Market expansion from Information Management off-cloud to cloud e
Slide 79: M&A Aligned with TAM Segmentation
M&A Aligned with TAM Segmentation TAM(1) Potential Acquirable CY’22 Market Size ($B) CY’22-’25 CAGR % M&A Targets Revenue Content $24B >200 >$5B Services 11% Large fragmented markets with no scarcity of assets Business $22B >400 >$3B Network 9% >$20B Leading with market Digital $25B of M&A segmentat
Slide 80: Our Approach and Principles
Our Approach and Principles 25 Highly Experienced and Dedicated Professionals Source Engage Diligence Acquire Integrate Proven world-class integration Aligning to faster-growing and Aligning to accelerating our to drive sustainable growth larger markets cloud strategy synergies and operational excel
Slide 81: Carbonite Acquisition Case Study
Carbonite Acquisition Case Study Carbonite Case Study Executing Our Playbook Acquired • 12/24/19 for 2.8x TTM revenue(1) Less than 3x revenue Strategic • Critical mass in Security & Protection Rationale • Scaled SMB channel Accelerated cloud revenue • Strong growth prospects Strong FCF profile Reven
Slide 82: Zix Acquisition Case Study
Zix Acquisition Case Study Zix ZixCase CaseStudy Study Executing Our Playbook Acquired • 12/23/21 for 3.6x TTM revenue(1) Less than 4x revenue • SMB platform expansion Strategic • MSP go-to-market alignment Scaling new SMB platform Rationale • Complementary product portfolio Accelerated cloud revenu
Slide 83: Our Strategic Priorities are Clear
Our Strategic Priorities are Clear Continue to build relationships and stay close to our 1,200 potential Core enabler to double the company targets Invest in and develop our internal We prioritize ARR core capabilities OpenText ©2022 All rights reserved 83
Slide 84: GROW with OpenText
GROW with OpenText Madhu Ranganathan, EVP and Chief Financial Officer
Slide 85: Key Messages
Key Messages Growth opportunities are We will invest in Building a strong model of significant. SMB/C at scale organizational and non-linear headcount growth, offers great adjacency to operational infrastructures, automation and increased enterprise well oiled to drive growth productivity Cloud infr
Slide 86: The OpenText Business System: How we create value
The OpenText Business System How we create value Our Shareholder Value Creation Model Total Ecosystem Innovation Building Operating model profitability Disciplined strategic acquisitions Best Total Operational Teams Growth Excellence Capital efficiency & returns Inclusion Sustainability Cash based r
Slide 87: GROW with OpenText – as you heard today
GROW with OpenText – as you heard today Our Top Growth Opportunities Deepen and expand Ultimate Cloud: 4 ways to Summit programs: GROW partnerships – hyperscalers, consume cloud by top customers and top system integrators, SMB companies of all sizes supply chain accounts channel at scale Cross-sell
Slide 88: Investing For Growth
Investing For Growth Non-GAAP R&D(1,2) - Investing in Innovation Investing for Scale FY’22 Model: $450 12%-14% $400 12.2% Contracts Management & Renewals Automation, Global 12.2% $350 11.7% Technical Support Automation, Re-imagined $ in millions $300 11.3% 11.0% www.opentext.com, Learning Management
Slide 89: Proven Durable Business Model
Proven Durable Business Model Growing ARR(1) and Upper Quartile Margin(2),(3) FY’22 Model: 80.9% 81% - 83% ARR % of Total 54.4% Revenues 37.2% 29.1% FY’22 Model: 35.5% - 36.5% (2) A-EBITDA Margin FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 TTM Q2 FY'22 1. Annual recurring revenue (AR
Slide 90: FY'22 Target Model
FY’22 Target Model(3) Fiscal 2021 Actuals Fiscal 2022(3,4) as of Feb 03 Revenue Type: Cloud Services and Subscriptions 41.6% 42% - 44% Customer Support 39.4% 37% - 39% Annual Recurring Revenue (ARR) 81.0% 81% - 83% License 11.4% 9% - 11% Professional Services and Other 7.7% 7% - 9% Non-GAAP Gross Ma
Slide 91: From Present to FY'24 Aspirations
From Present to FY’24 Aspirations FY’22 Target FY’23 Key Operational Drivers FY’24 Model • ARR expansion Aspirations Non-GAAP Gross Margins(1) • A-EBITDA margin(1) opportunities: 200 to 400 bps A-EBITDA Margin(1) 75% - 77% • FCF (1) as a % of Total Revenues in high 20s 38% - 40% A-EBITDA ARR A-EBITD
Slide 92: Sustainable and Profitable Cloud Growth
Sustainable and Profitable Cloud Growth FY’24 Aspirations • Strong enterprise cloud bookings in FY’21 and first six months of FY’22, across many products and geographies with upward trend in large deals • Cloud revenue will lead Total Growth • Cloud growth and scale will drive higher Non-GAAP gross
Slide 93: Path to 85% ARR in FY'24
Path to 85% ARR in FY’24 FY’22 Target FY’23 Operational Drivers FY’24 Model Aspirations Cloud Revenues ARR 42% - 44% 85% Cloud Growth Customer Support M&A Customer Support • From renewal to expansion • From renewal to expansion • Acquisitions will be ARR focused Revenues • Higher automation in contr
Slide 94: FY'24 Medium-Term Aspirations
FY’24 Medium-Term Aspirations Organic Growth(1) 2% - 4% Strategic GROW with OpenText programs ARR 85% Growth in cloud as a percent of total revenues % of Total Revenue Mid-90s customer support renewals and cloud subscriptions A-EBITDA(2) 38% - 40% Improved margin through growth, scale and automation
Slide 95: Our Strategic Priorities are Clear
Our Strategic Priorities are Clear Best-in-class operational Technology Expansion of financial support to accelerate investments (internal) & envelope organic growth automation towards innovation World-class integration of Non-linear growth of Modern work: optimal acquisitions – growth headcount, in
Slide 96: Thank you
Thank you twitter.com/opentext linkedin.com/company/opentext opentext.com