Slide 1: OpenText Investor Presentation
OpenText Investor Presentation February 6, 2025 NASDAQ: OTEX | TSX: OTEX
Slide 2: Safe Harbor and IP Statement
Safe Harbor and IP Statement This presentation contains forward-looking statements or information (forward-looking statements) within the meaning of the Private Securities Litigation Reform Act of 1995, Section 21E of the U.S. Securities Exchange Act of 1934, as amended (the Exchange Act), Section 2
Slide 3: Building Shareholder Value: Our Four Point Strategy
Building Shareholder Value: Our Four Point Strategy 1• Live the OpenText Business System • Relentless focus on execution 2• Accelerate Cloud Growth • Competitive differentiation in Information Management • Grow consumption in Private Cloud, SaaS, Security and AI For the next 3 years expect • Market
Slide 4: Mid-Year F'25 Update
Mid-Year F’25 Update Q2 F’25 Performance F’25 Targets • A-EBITDA Margin of 37.6%, up 70 bps y/y, and up over • Maintaining F’25 Cloud Revenue Target Range 300 bps excluding AMC • Maintaining F’25 A-EBITDA Margin(1) Target Range • Free Cash Flows of $307M, up 0.4% y/y • Increasing F’25 Free Cash Flow
Slide 5: Q2 F'25 Financials
Q2 F’25 Financials OpenText Reported OpenText ex-AMC $ in millions except A-EPS Q2 F’25 Q2 F’24 % change $ in millions Q2 F’25 Q2 F’24 % change Cloud Revenue $462 $450 2.7% Cloud Revenue $462 $450 2.7% ARR Revenue(1) $1,053 $1,146 (8.1)% ARR Revenue(1) $1,053 $1,062 (0.8)% Total Revenue $1,335 $1,53
Slide 6: Q2 F'25 Customer Wins
Q2 F’25 Customer Wins Analytics Application Automation Business Network Content Content IT Operations Management Bosch is a global leader in ST Micro is a global semiconductor BASF Catalysts is a current GWC is a leading provider of Ergon is a family of companies Aeven, (part of Novo Nordisk IT), en
Slide 7: Cash Flows and Debt Maturity Profile
Cash Flows and Debt Maturity Profile As of December 31, 2024 Cash (USD$M) OpenText Debt Maturity (USD$M) Additional Metrics Total Cash $1,122 Principal Outstanding $6.5B TTM Q2 F’25 (USD$M) Operating Cash Flows $840 Total Fixed Debt 66% Cap Ex Investments $157 Weighted Average Interest Rate 5.2% Fre
Slide 8: Disciplined Capital Allocation
Disciplined Capital Allocation 1 Decade+ track record of growing capital return 2 F’25 to be a record year of capital return(1): $570m+. In Fiscal 2025, we purchased and canceled $151 million of common shares. We purchased $301 million of common shares over the past three quarters 3 Primary allocati
Slide 9: F'25 Revenue Target – Lowered by $130M
F’25 Revenue Target – Lowered by $130M 1• $70M lower in certain products, primarily ADM and ITOM, holding back our growth and impacting license, CS, and professional services revenue. We have strong initiatives from Sales, Marketing, and Item Description Amount Renewals organizations to increase gro
Slide 10: F'25 Targets
(1) F’25 Targets F’24 As Reported F’25 Targets F’25 Targets Primary Metrics F’24 As Reported ex-AMC Prior Updated Key Highlights Cloud Revenue $1.82B $1.82B $1.85B to $1.90B No change • Cloud growth: Annual Recurring ◦ 2% to 5% (No change) Revenue(2) $4.53B $4.25B $4.25B to $4.30B $4.17B to $4.22B •
Slide 11: F'25 Supporting Metrics
(1) F’25 Supporting Metrics Additional Metrics F’24 as Reported F’25 Targets(1) Prior F’25 Targets(1) Updated • Enterprise Cloud Bookings Enterprise Cloud Bookings(2) $701M / 33% Growth 25% Growth 20% to 25% Growth drive Cloud revenue growth Gross Margin(3) 77.3% 76% to 77% No change • Renewal rate
Slide 12: Q3 F'25 Quarterly Factors
Q3 F’25 Quarterly Factors Externalities Company Specific • Tariffs Expect Q3 Revenues: • US Dollar Strength • Total revenues of $1,260M to $1,300M • Currency Fluctuations • Year-over-year comparable impacted by the divestiture of AMC • ARR(1) of $1,025M to $1,045M • Lower European GDP growth • Geopo
Slide 13: Product and Strategy
Product and Strategy ieseee ts
Slide 14: About OpenText
About OpenText Our Vision Information Management $5.3B (2) F’24 Revenues To be the best information management $200B+ TAM(1) company in the world 120,000+ Customers (3) Enterprise Our Belief 21,800 Employees(4) Information elevates every individual & organization to be their best 180 Strategic Partn
Slide 15: We Make the Software that Manages Some of the World's Largest Information Repositories
We Make the Software that Manages Some of the World’s Largest Information Repositories 120K+ 98 31M 1M of 100 world's largest companies are our Connected trading Enterprise Customers Public cloud users customers partners $11T 290 1T 1B In annual commerce Petabytes of data Pages of content Pages proc
Slide 16: We Do What No Other Software Company Can
We Do What No Other Software Company Can Information Automation and Content Management Automation and Content Management Any Type of Data Large Trusted Data Sets Connectors Engines • Documents 100s of Connectors • Video / Voice / Images 1 Trillion pages managed Governance and 1 Billion pages process
Slide 17: Better Positioned Than Our Competitors
Better Positioned Than Our Competitors(1) Named a LEADER in all markets by industry analysts Content Cloud Experience Cloud AI Cloud IT Operations Cloud Business Network Cloud Application Development Management Security Cloud 1. Based on market reports from independent industry analysis firms. OpenT
Slide 18: Accelerate Cloud Growth
Accelerate Cloud Growth Competitive Differentiation in Information Management Strong Investment in R&D Expand Market Coverage F’25 R&D: • 14% to 16% of Revenue Titanium Private Cloud and Cloud Investment focused on: SaaS • Business Clouds Faster Growth ◦ SaaS ◦ Private • Business AI Expanded ◦ Aviat
Slide 19: Investments Expand Our Addressable Market
Investments Expand Our Addressable Market Product Expansion Drives Growth Total Addressable Market Titanium X: Next Generation Autonomous Cloud $200B+ Embeds AI and Security in all major offerings (1) Cloud “Let the Machines Do The Work” Faster Growth Titanium: Standardizes OpenText as a Cloud-first
Slide 20: Customer Use Case: Public Cloud SaaS
Customer Use Case: Public Cloud SaaS Customer deployed a scalable cloud platform to digitize workflows and optimize content management processes Solution Products Deployed: Services Provided: • OpenText Core on Public Cloud • Professional Services SaaS • Learning Services • Deployed a secure, scalab
Slide 21: Information Management is Essential for AI Disruption
Information Management is Essential for AI Disruption OpenText is the trusted partner for global organizations that generate Third-Party Information Trusted Learning Models massive volumes of Automation Data & Algorithms documents and transactions OpenText ©2025 All rights reserved 21
Slide 22: OpenText AI Products
OpenText AI Products Aviator squadron TM is fully available • Business AI for the Enterprise • Your data and your Intellectual Property • Bring your own language model • Available in: ◦ OpenText Private Cloud ◦ Google Cloud Platform • Advancing every 90 days • 15 Aviators, 100+ Agents embedded every
Slide 23: Customer Use Case: Aviator for IT Operations
Customer Use Case: Aviator for IT Operations TM Customer improves efficiency and the user experience by applying advanced automation to service requests Solution Products Deployed • OpenText Service Management (SMAX) with OpenText IT Operations Aviator • Centralized SMAX Portal: Deployed an enterpri
Slide 24: OpenText Business System
OpenText Business An OpenTexter Always … System Puts customers first Customers talk, we listen. Be the trusted advisor. Customer value and engagement is in every conversation. Innovates • Help customers transform through We debate, align and act. We focus on customer-driven value and business impact
Slide 25: Building Shareholder Value: Our Four Point Strategy
Building Shareholder Value: Our Four Point Strategy 1• Live the OpenText Business System • Relentless focus on execution 2• Accelerate Cloud Growth • Competitive differentiation in Information Management • Grow consumption in Private Cloud, SaaS, Security and AI For the next 3 years expect • Market
Slide 26: opentext”
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Slide 27: Appendix A: Use of Non-GAAP Financial Measures
Appendix A Use of Non-GAAP Financial Measures In addition to reporting financial results in accordance with U.S. GAAP, the Company provides certain financial measures that are not in accordance with U.S. GAAP (Non-GAAP).These Non-GAAP financial measures have certain limitations in that they do not h
Slide 28: F'27 Aspirations
F’27 Aspirations(1) F’27 Aspirations Cloud Services and Subscriptions growth 7% to 9% Total Organic Revenue(2) growth 2% to 4% Total Revenue $5.7B to $5.9B A-EBITDA Margin %(3) 36% to 38% Free Cash Flows(3) $1.2B to $1.3B Supporting Metrics Enterprise Cloud Bookings(4) growth 20%+ Annual Recurring R
Slide 29: Powerful A-EBITDA and Free Cash Flows Generation
(1) Powerful A-EBITDA and Free Cash Flows Generation F’27E(2) • Margin expansion $1.2B to $1.3B 20%+ FCF as a • A technology-enabled business through Data, Automation and AI percent of Revenue Lower interest charges F’24 Lower special charges $808M 14% FCF as a Completed Micro Focus integration perc
Slide 30: OpenText ex-AMC
OpenText ex-AMC(1),(2) F’25 Actual F’24 Actual F’23 Actual $ in millions Q1 Q2 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Cloud 457 462 451 450 455 465 1,821 405 409 435 452 1,700 Customer Support 595 591 614 612 606 599 2,430 311 310 518 622 1,760 License 126 189 129 248 158 161 696 60 105 117 195 477 Professio
Slide 31: F'24 Annual Metrics
F’24 Annual Metrics Organic Growth(1) y/y % change F’24 Total Revenue % of Total As Reported F’24 F’23 Information Management Revenue Cloud 1.7% 1.5% Content Management 40% ARR(2) 0.6% (0.8%) Cybersecurity 20% Total 0.8% (2.0%) Business Network 10% In CC(3) IT Operations Management (ITOM) 10% Cloud
Slide 32: Summary of Quarterly Results with Constant Currency
Summary of Quarterly Results with Constant Currency Q2 F'25 % Change (In millions U.S. dollars, except per share data) Q2 F'25 Q2 F'24 $ Change % Change in CC* in CC* Revenues: Cloud services and subscriptions $462.3 $450.1 $12.2 2.7 % $459.9 2.2 % Customer support 590.6 695.8 (105.2) (15.1) % 585.2
Slide 33: Summary of Year to Date Results with Constant Currency
Summary of Year to Date Results with Constant Currency % Change (In millions U.S. dollars, except per share data) F'25 YTD F'24 YTD $ Change % Change F'25 in CC* in CC* Revenues: Cloud services and subscriptions $919.3 $901.1 $18.2 2.0 % $918.6 1.9 % Customer support 1,186.1 1,393.5 (207.4) (14.9) %
Slide 34: Reconciliation of Selected Non-GAAP Measures | Q2 F'25
Reconciliation of Selected Non-GAAP Measures | Q2 F'25 Three Months Ended December 31, 2024 GAAP % of Non-GAAP % of (In ‘000's U.S. dollars, except per share data) GAAP Total Revenue Adjustments FN Non-GAAP Total Revenue Cost of revenues Cloud services and subscriptions $ 172,288 $ (2,796) (1) $ 169
Slide 35: Reconciliation of Selected Non-GAAP Measures | Q2 F'25
Reconciliation of Selected Non-GAAP Measures | Q2 F'25 FOOTNOTES 1 Adjustment relates to the exclusion of share-based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results. 2 Adjustment relates to the exclusion of
Slide 36: Reconciliation of Selected Non-GAAP Measures | F'25 YTD
Reconciliation of Selected Non-GAAP Measures | F'25 YTD Six Months Ended December 31, 2024 GAAP % of Non-GAAP % of (In ‘000's U.S. dollars, except per share data) GAAP Total Revenue Adjustments FN Non-GAAP Total Revenue COST OF REVENUES Cloud services and subscriptions $ 347,545 $ (4,982) (1) $ 342,
Slide 37: Reconciliation of Selected Non-GAAP Measures | F'25 YTD
Reconciliation of Selected Non-GAAP Measures | F'25 YTD FOOTNOTES 1 Adjustment relates to the exclusion of share-based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results. 2 Adjustment relates to the exclusion of
Slide 38: Reconciliation of Selected Non-GAAP Measures | Q2 F'24
Reconciliation of Selected Non-GAAP Measures | Q2 F'24 Three Months Ended December 31, 2023 GAAP % of Non-GAAP % of (In ‘000's U.S. dollars, except per share data) GAAP Total Revenue Adjustments FN Non-GAAP Total Revenue COST OF REVENUES Cloud services and subscriptions $ 180,148 $ (3,609) (1) $ 176
Slide 39: Reconciliation of Selected Non-GAAP Measures | Q2 F'24
Reconciliation of Selected Non-GAAP Measures | Q2 F'24 FOOTNOTES 1 Adjustment relates to the exclusion of share-based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results. 2 Adjustment relates to the exclusion of
Slide 40: Reconciliation of Selected Non-GAAP Measures | F'24 YTD
Reconciliation of Selected Non-GAAP Measures | F'24 YTD Six Months Ended December 31, 2023 GAAP % of Non-GAAP % of (In ‘000's U.S. dollars, except per share data) GAAP Total Revenue Adjustments FN Non-GAAP Total Revenue COST OF REVENUES Cloud services and subscriptions $ 351,560 $ (6,600) (1) $ 344,
Slide 41: Reconciliation of Selected Non-GAAP Measures | F'24 YTD
Reconciliation of Selected Non-GAAP Measures | F'24 YTD FOOTNOTES 1 Adjustment relates to the exclusion of share-based compensation expense from our Non-GAAP-based operating expenses as this expense is excluded from our internal analysis of operating results. 2 Adjustment relates to the exclusion of
Slide 42: Reconciliation of Adjusted EBITDA and Free Cash Flows
Reconciliation of Adjusted EBITDA and Free Cash Flows (In '000's U.S. dollars) Q2 F'25 Q2 F'24 GAAP-based net income, attributable to OpenText $ 229,862 $ 37,675 Add: Provision for income taxes 50,893 8,054 Interest and other related expense, net 83,615 139,292 Amortization of acquired technology-ba
Slide 43: Reconciliation of Adjusted EBITDA and Free Cash Flows
Reconciliation of Adjusted EBITDA and Free Cash Flows (In '000's U.S. dollars) F'15 F'16 F'17 F'18 F'19 F'20 F'21 F'22 F'23 F'24 Adjusted EBITDA GAAP-based net income, attributable to OpenText $ 234,327 $ 284,477 $1,025,659 $ 242,224 $ 285,501 $ 234,225 $ 310,672 $ 397,090 $ 150,379 $ 465,090 Add: P