investor day presentation...documentum 2019 carbonite and smb/c 2020 cloud edition modern cloud...

Investor Day Presentation

NASDAQ: OTEX | TSX: OTEX

March 11, 2021

OpenText Confidential. ©2021 All Rights Reserved. 2

Safe Harbor Statement

This presentation may contain 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 created under the Securities Act of 1933, as amended (the

Securities Act), and the Securities Exchange Act of 1934, as amended, the Securities Act (Ontario) and Canadian securities legislation

in each of the provinces of Canada. All statements other than statements of historical facts are statements that could be deemed

forward-looking statements. When we use words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,”

“may,” “could,” “would”, “will” and variations of these words or similar expressions, we do so to identify forward-looking statements. In

addition, any statements that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of

future events or circumstances, including any underlying assumptions, are forward-looking statements, and are based on our current

expectations, forecasts and projections about the operating environment, economies and markets in which we operate. Forward-looking

statements reflect our current estimates, beliefs and assumptions, which are based on management’s perception of historic trends,

current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. These

forward-looking statements are based on certain assumptions and involve known and unknown risks as well as uncertainties, which

include actual and potential risks and uncertainties relating to the ultimate spread of COVID-19, the severity of the disease and the

duration of the COVID-19 pandemic. The actual results that we achieve may differ materially from any forward-looking statements,

which reflect management's current expectations and projections about future results only as of the date hereof. We undertake no

obligation to revise or publicly release the results of any revisions to these forward-looking statements. A number of factors may

materially affect our business, financial condition, operating results and prospects. For additional information with respect to risks and

other factors which could occur, see our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other securities filings with

the Securities and Exchange Commission and other securities regulators. Any one of these factors may cause our actual results to

differ materially from recent results or from our anticipated future results. Readers are cautioned not to place undue reliance upon any

such forward-looking statements, which speak only as of the date made.


Mark J. BarrenecheaOpenText CEO & CTO


DMark

Barrenechea

Muhi

Majzoub

Ted

Harrison

James

McGourlay

Prentiss

Donohue

Gordon

Davies

Madhu

Ranganathan

Today’s Speakers and Key Messages

Corporate Growth

Strategy

Product Strategy

& Increased R&D

Investment

Enterprise

Growth, G10k,

Partner

Expansion

Renewals

Growth,

Expansion

Opportunities

SMB

Growth,

MSP/RMM

Expansion

M&A

Strategy,

Corporate

Citizenship

Profitability,

Returns, and

Operating

Excellence

CEO & CTOEVP,

Chief Product Officer

EVP,

Enterprise Sales

EVP,

Customer Operations

EVP,

SMB/C Sales

EVP, CLO & Corporate

DevelopmentEVP, CFO


30 Years of Market Defining Leadership

1991Foundation out of

University of Waterloo

1994Web Search Market with

Yahoo!

2005Established Content

Services Market

2013Release 16

Introduction

2014GXS Enter The Business

Network Market

2017Documentum

2019Carbonite

and SMB/C

2020Cloud Edition Modern

Cloud Platform

2021GROW with OpenText

The Ultimate CloudTM

2024 AspirationsTotal Revenue

Organic Growth of 2% - 4%

ARR of 85%

Our Belief

Our

Passion

Our Aspiration

Information and knowledge makes business

and people better.

To be the leading cloud-based Information

Management company, enabling intelligent,

secure and connected business.

Deliver compelling innovations that provide our

CUSTOMERS competitive advantage.

An inclusive environment where passionate, skilled,

and diverse EMPLOYEES thrive.

Deliver SHAREHOLDER value through growth,

profits and capital efficiency improvements.


OpenText Snapshot (NASDAQ/TSX:OTEX)

80% ARR (as of Q2 FY’21)

265% Cloud Growth2

75K Enterprise Customers

470K SMB Customers

287M End Points

89 out of the Top 100 companies

(1) Americas consists of countries in North, Central, and South America. EMEA primarily consists of countries in Europe, The Middle East & Africa. Asia Pacific primarily

consists of Japan, Australia, China, Korea, Philippines, Singapore, and New Zealand

(2) From FY’14 to 2Q FY’21 TTM

(3) Please refer to “Use of Non-GAAP Financial Measures” in the Q2 FY’21 investor presentation (Feb 4, 2021) 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) Free Cash Flows = Operating Cash Flows minus Capital Expenditures (or “Additions to property & equipment” in the Statement of Cash Flow)

US$MY/Y

Change

Cloud Revenue $1,364 +41%

Annual Recurring

Revenue$2,675 +21%

Total Revenue $3,301 +12%

Adj. EBITDA3 $1,280 +15%

Adj. EPS (US$/share)3 $3.25 +14%

Free Cash Flows3,4 $1,069 +35%

Financial Highlights 2Q FY’21 TTM

RECURRING & GROWING BUSINESS

GLOBAL FOOTPRINT 1

EMEA$942m

Employees:

2,741

Americas$1,904m

Employees:

6,597 APJ$264m

Employees:

5,006

Revenue and employee data as of FY20


Kristina

LengyelEVP, Customer

Solutions

Tenure: <1 year

Paul

DugganSVP, Revenue

Operations

Tenure: 4 years

Brian

SweeneySVP, CHRO

Tenure: 3 years

Doug

ParkerSVP, Corporate

Development

Tenure: 12 years

David

JamiesonSVP, CIO

Tenure: 7 years

Lou

BlattSVP, CMO

Tenure: 1 year

Mark J.

BarrenecheaCEO and CTO

Tenure: 9 years

Madhu

RanganathanEVP, CFO

Tenure: 3 years

Muhi

MajzoubEVP, Chief Product

Officer

Tenure: 9 years

Gordon

DaviesEVP, CLO & Corporate

Development

Tenure: 12 years

Ted

HarrisonEVP, Enterprise Sales

Tenure: 21 years

James

McGourlayEVP, Customer

Operations

Tenure: 24 years

Prentiss

DonohueEVP, SMB/C

Sales

Tenure: 5 years

Deeply Talented and Experienced Leadership Team


Highly Skilled Board of Directors

Major-General (Ret.)

David Fraser

Gail

Hamilton

Harmit

Singh

Robert

Hau

Michael

Slaunwhite

Tom

Jenkins

Mark

Barrenechea

Kate

Stevenson

Steve

Sadler

Randy

Fowlie

Debbie

Weinstein

Industry Expertise

Technology

Strategy

Operational Excellence

Finance

Legal

Capital Markets

Diverse Skills

10+ years of average tenure

82% independent

Experience & Commitment

Dye & Durham,

Sapphire Health

Board Member

OpenText

Chair

OpenText

CEO & CTO

CIBC

Chair

Enghouse Systems

Chair

LaBarge Weinstein

Law Firm

Arrow Electronics

Board Member

Levi Strauss

CFO

Fiserv, Inc.

CFO

Halogen Software

Former CEO

Canadian Forces

Foundation, Route1, Inc.

Antoxa Corp,

Board Member


Our Competitive Advantage

• Our people, leadership and expertise

• The largest Information Management cloud company and well

positioned to grow and extend our lead

• Modern cloud company

• Our proven ability to deliver high-impact innovations that make a

difference

• Robust financial performance and profile

• Marquee customers and partners and predictable recurring

revenues

• Our business model, values and purpose drive stakeholder and

shareholder value


Information Management: A Modern Strategic Platform

Traditional Process

Applications

Financials

Human Resources

Order Management

Supply Chain

Sales

Service & Support

Resource Planning

and more

Process Advantage Information AdvantageIntelligent, Secure

and Connected

Business

Modern Information Applications

Capture

Archives / Records

Business Networks

Security & Data

Protection

and more

Collaboration

Experience

Platform

Content

Management

Superior

Results


OpenText

Total Revenue

CY’21 to

CY’24 CAGR

Content $24B +11%

Business

Network$20B +7%

Digital

Experience$21B +7%

Security &

Protection$19B +6%

Total $84B +8%

$1.4B to $3.1B FY’13 to FY’20

12.5% CAGRFY’13 to FY’20

The Information Management Market is Large and Growing

Total Addressable Market1

Total Organic Growth: 2% - 4%

Annual Recurring Revenue: 85%By FY 2024 Aspirations

Well Positioned to Extend our Lead

• The largest Information Management company in a large and growing market

• A modern cloud company

• Marquee install base:

◦ 89 of top 100 companies

◦ 75K Enterprise companies

◦ 470K SMB companies

• Comprehensive GTM

• Modern, fully scalable, cloud-based architecture

1. Source: individual market reports from IDC


Well Positioned to Grow - Driven by Market Needs

Modern Work Modern ExperiencesSustainable Supply

Chains

Security & Data

ProtectionCloud Migration

New cloud work-loads

with API services

Marquee

Install base

New Customers &

PartnersIndustry Scale


Modern Work Modern Experiences Supply Chains

Security & Data Protection Cloud Migration New Cloud Workloads

Marquee Install Base New Partners Industry Scale

DigitalizationDirect to Consumer

Omni-ChannelSustainability

Connectivity

Cyber Threats

Shift to Behaviors

Private Cloud

Public Cloud

eSignature

Collaboration

API Services

75K Enterprise Customers

470K SMB CompaniesCloud Platform Hyper-scalers

Industry Eco-systems

FinServ, Healthcare, CPG,

Retail, GVNT, Auto/Transport,

Pharma, …

Well Positioned to Grow - Driven by Market Needs


Simplified Go-to-Market

Cloud Editions

OpenText is a Modern Cloud Company

Off Cloud, Private Cloud, Public Cloud

OT2 - Cloud API Services

OpenText Information Management PlatformThe Foundation for the Intelligent, Secure and Connected Business

Off-Cloud

Automation and AI

• 5 Cloud Editions

• Rapid innovation cycles (every

90 days)

• Easier to consume new

capabilities

• Redefining customer choice

• Recurring revenue expansion

• New routes to market with API

services

• Removing Friction: Scale

through AI & Automation


Accelerating Growth: Scalable, High-Velocity, Low-Friction Business Model

Product is built for:• Self-service

• Upsell

• Cross-sell

• Renew

New Customer Engagement Model:• Pre-sales

• Self-sell - upsell, cross-sell

• Post-sales - renewals

Digitization and Automation:• Automate renewals

• Demand creation automation

• Automate DevOps

• Automate routine R&D

Removing friction from

all company processes

Product

Design

Digital

Zone

Digitization

&

Automation

(DnA 2.0)


The Information

Management Journey

Cloud

Editions

The Intelligent,

Secure and

Connected

Businesses

Digital

Experience

Data

Protection

& Security

Business

NetworkModern

Work

Advanced

Technology &

Experts

All Points of

Departure

GROW with OpenText

The Ultimate Cloud™

OpenText Cloud Editions


GROW with OpenText – The Ultimate Cloud™

All future product updates,

knowledge center, and security

alerts/updates.

Scaling 3 programs in F22

OpenText Optimize, off cloud

managed service

Dual-usage rights for customers

migrating to the Cloud Editions

Release 16 Extended Support

Program Fees

Over 3,000 customers run

their business in the OpenText

private cloud.

High value destination for

customers with unique process

and information requirements

All Cloud Editions supported

Bring your own license

Run anywhere (OpenText, GCP,

AWS, Azure)

Deliver key Information

Management capabilities

as public API Services.

New route-to-market

for OpenText, and new future

revenue streams

Enable the next generation

of Information Management

Applications

Cloud Editions leverage

the same API services

Business Network Cloud, Security &

Data Protection Cloud, eSignature,

CORE… all Public Cloud, today.

Expanding the scope

and customer choice

With Cloud Editions 21.4, Content

Cloud will operate as a public cloud

With Cloud Editions 22.2,

Experience Cloud will operate

as a public cloud

License or subscription-based Subscription-based Subscription-based Subscription-based

“GROW with OpenText is a set of programs that brings together everything you need to transform your business,

accelerate your growth, engage your communities and stay ahead of the competition.”

One technology platform. Four deployment choices.

Public Cloud(Standardization Value)

Cloud API Services (Embedded Value)

Off Cloud(Investment Full Value)

Private Cloud(Process/Information Value)


Complete and Direct G10K

coverage by end of C23

Building Eco-Systems

(from SAP, Salesforce, Cerner,

McKesson, AT&T)

3,000 dedicated customer

success professionals

Unique and scaled reach with

MSP/RMM’s

Digital Zone for Demand,

Sales & Support

AI driven automation

for renewals and support

Comprehensive Go To Market

Delivering

Information Management

to businesses of all size and types wherever they are on their journey


Strong Track Record of Financial Performance

Annual Recurring Revenue

(US$ M)

$1,080

$2,675

FY'14 Q2 FY'21 TTM

148%

Total Revenue

(US$ M)

$1,625

$3,301

FY'14 Q2 FY'21 TTM

103%

Cloud

(US$ M)Free Cash Flow1

(US$ M)

$375

$1,069

FY'14 Q2 FY'21 TTM

185%

$373

$1,364

FY'14 Q2 FY'21 TTM

265%

A-EBITDA1

(US$ M)

$538

$1,280

FY'14 Q2 FY'21 TTM

138%

Upper Quartile A-EBITDA Margin and Free Cash Flow Conversion2

1. Please refer to “Use of Non-GAAP Financial Measures” in the Q2 FY’21 investor presentation (Feb 4, 2021) 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

2. FCF Conversion is FCF as a % of Total Revenue for 2Q FY’21 TTM


Strategic Capital Allocation and Strong Liquidity

Historical Use of Capital

$1B+ paid in

dividends

$1,108

$339

$287

$2,107

$327$387

$1,384

FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20

Capital deployed on

Acquisitions (US$ M)

Ability to grow and

generate future returns

• $1.1B Generated FCF over the TTM

• $2.25B Total Available & Committed Liquidity1

• 1.6x Net leverage ratio

• 14% Low Adj Tax Rate

• Low capital intensity business

• Resolved long-standing tax matter

$75$88

$99

$121

$146

$169

$189

FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20

Dividends Paid

(US$ M)

+153%

$5.8B deployed

$42

$77$70

$80

$105

$64

$73

FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20

CAPEX

(US$ M)

$500M+ CAPEX

deployed

1. Excludes restricted cash. Includes Cash and the Undrawn Revolver of $750m as of December 31, 2020.


How We Create Value

Value

Growth

Capital Efficiency

Profitability

• Strategic-oriented acquiror

• Target ~20% TTM FCF for dividends

• High-teens ROIC

• 12.5% Total Revenue CAGR (FY’13 to

FY’20)

• Our business is predictable at 80% + ARR

• F’22 outlook of 1%-2% Total and 3%-4% Cloud organic growth

• Strong M&A pipeline and new deals additive to our total growth

• 2Q FY’21 TTM Adj EBITDA1

margin of 38.8% with long-term aspiration of 38% to 40%

• TTM FCF1 of $1.1B, with long-term aspiration of $1.1B to $1.2B

• TTM FCF conversion2 of 32%

Growth

Profitability

Capital Efficiency




2. FCF conversion is FCF as a % of Total Revenue for 2Q FY’21 TTM


Our Financial Outlook1

M&A will be additive

Total

Revenue

Organic

Growth

1%-2%

Cloud

Revenue

Organic

Growth

3%-4%

Introducing

FY’22 Outlook

Total

Revenue

Growth

Mid Single

Digit

Cloud

Revenue

Growth

High

Teens

FY’21 Outlook

Total Growth

1. Revenue % are year over year comparisons

Total

Revenue

Organic

Growth

2%-4%

A-EBITDA

Margin

38%-40%

Free Cash

Flows

(FCF)

$1.1-$1.2B

Introducing

FY’24 Long Term Aspirations

ARR

% of Total

Revenue

85%

Adj. EBITDA Margin over 40% to be re-invested in Organic Growth


We Strive To Do The Right ThingOur Customers Our Communities

OpenText Donates

US $1M to Global

Food BanksDec 11, 2020

OpenText Provides 4

Million Meals for 58

Communities in 21

Countries WorldwideDec 11, 2020

Improving

Accessibility for

Individuals with

Visual Impairments

Nov 18, 2020

OpenText CEO

Issues Call for

Corporate Social

Responsibility

Jul 15, 2019

Covid-19 Showed My Company a Better

Way to WorkMay 12, 2020

Rapid Radiology and OpenText Accelerate

Diagnostic Results to Help Improve Patient Care

Jun 25, 2020

OpenText Enters Agreement to Serve as the

Platform of Choice for EIM for the U.S. NIH

Aug 6, 2020

Southern Alberta

Internet Child

Exploitation Unit

Customer Reference

Our Beliefs Our Employees


Our Growth Agenda

Deep expertise and talent

New and compelling product cycle with OpenText

Cloud Editions

Marquee Customers: 75K Enterprise, 470K SMB

Expanded investments in Products and Go-To-

Market

$84B TAM growing at 8%2% to 4% Total Revenue Organic Growth

85% ARR

FY’24 Aspirations

FY’21 Outlook

FY’24 Aspirations


Muhi MajzoubOpenText EVP & Chief Product Officer


Key Messages

Unparalleled Information Management (IM) platform built

for scale and performance

OpenText Cloud platform enabling:

• Business Network

• Carbonite

• Faster delivery of SaaS Applications (eSignature)

• New path to market – developer cloud

Cloud Editions ready for Modern Work

Advanced AI algorithms integrated into IM

Products built for and at the needs of our marquee

customer base


Acknowledged Leadership Across Information Management

Forrester Wave™: Digital Asset

Management For Customer Experience,

Nov, 2019

Media Management

IDC MarketScape: Multi-Enterprise

Supply Chain Commerce Networks 2018

Business Network

Gartner Magic Quadrant for Content

Services Platforms,

Nov 2020

Content Services

Forrester Wave™: Enterprise Content

Management — Content Platforms, Q3

2019, 24 July 2019

Content Services

Gartner Magic Quadrant for Multi-enterprise

Supply

Chain Business Networks, May 2020

Business Network

Forrester Wave for Agile CMS, Feb 2021

Agile CMS

IDC MarketScape: Worldwide Customer

Communications Management 2020

Vendor Assessment, Mar 2020

Document Automation

Forrester Wave™: Software For Digital

Process Automation For Deep

Deployments,, June, 2019

Process Automation

Gartner Magic Quadrant for eDiscovery

Software, May 2015

eDiscovery

Gartner Magic Quadrant for Customer

Communications Management Software,

Jan 2017

Document Automation


Leadership in Information Management

Submarket Leadership1 Selected Growth OpportunitiesGrowth Driver

Global Sustainable

& Ethical Supply

Chains

Modern Work

Cyber Resilience

Personalized

Omni Channel

Experiences

• Business Network Connectivity

• Global Invoicing Compliance

• Omni Channel Communications

• Digital Fax

• Document, Records & Archive

Management

• Capture

• Backup & Recovery

• Anti virus protection

• Integration & data management

• eSignature

• Collaboration

• Digital Investigations and

Forensics

• End point backup

API Services • Intelligent Capture

• BrightCloud Threat Intelligence

• Media management

• Magellan text mining

• Dev studio low code

• SaaS workloads

• Data and user experience

integration

1. Based on OpenText internal research.


OpenText Cloud Editions: The Ultimate Cloud™

The Ultimate Cloud™ is:

• Global

• Secure

• Always on (99.99% Availability)

• Compliant (GDPR, Data Zones …)

• Modern – API services

• Run Anywhere: off-cloud, private cloud, public cloud

Cloud Editions

Off Cloud, Private Cloud, Public Cloud

OT2 - Cloud API Services

OpenText Information Management PlatformThe Foundation for the Intelligent, Secure and Connected Business

Off-Cloud

Automation and AI


OpenText Cloud Editions: The Ultimate Cloud™

• Collaboration for Modern Work

• Digital Signature*

• Core Supplier Xchange *

• Regulatory Compliance for Pharma*

• Intelligent Viewing *

• Intelligent Folder –Classification of Content

• Core Capture & Intelligent Filing *

• Content Sharing for remote workers *

• Modeling of Building Information *

• Country expansion for supply chain *

• More connectors to our A2A library *

• IoT Solution Accelerators

• EDI for SMB Solution *

• Visibility tracking for transaction *

• Mapping Tools *

• Programmable Grid *

• Integration to Content Cloud*

• EnCase in Azure and AWS Marketplace

• OCR for Forensic Investigations

• Automated evidence processing

• CSB HyperV backup features & Reduce RPO to 1 hour *

• DNS Support for Dynamic IP *

• Improve efficacy with USB block, foreign code shield and enhanced threat reporting *

• AI Image analysis in Media Management

• Analytics for Twilio and Ring Central

• Cloud Fax Integration with Cerner EMR *

• Marketing Hub in other applications with embeddable DAM UX

• Customer communication new design studio

• Template rationalization and migration for Exstream

• Developer Portal *

• Administration Center and Sandbox test environments *

• Core Signature Service *

• IoT Mobile Device provisioning *

• Advanced Workflow Service *

• Document Generation Service *

• SMS Notification REST API *

• Records Management Service *

* = SaaS multi-tenant apps


• Expand market awareness of our existing

Developer business to spur new partnerships

• Unique services for the next generation of SaaS

products

How We Grow• Create new opportunities outside our

existing customer base

• Expand our partnerships to create revenue

multipliers

• Simplify our customer’s route to secure

cloud information management

https://developer.opentext.com/

https://developer.opentext.com/


Customer Example - Benefits of Cloud

Case study:

• Chevron | Oil & Gas

Results:

• CE Upgrade in 3-4 weeks compared to 1-2 years

• Upgrade cost savings now spent on innovation and value adds

“Typical upgrades are 2 years long, and painful,

and going into production in less than a month

after OpenText releases is a dream come true.”


Information Management: Investing to Win

4,500+Developers

up 4x over 8 years

1,000+Patents

A-EBITDA Margin(1)(2)

R&D Investment ($ and in % of Total Revenue)1,2

R&D US$

R&D%

of Total Revenues

12-14%

FY’21

11.7%

365 M

FY’20FY’19

11.0%

317 M

1. Please refer to “Use of Non-GAAP Financial Measures” in the Q2 FY’21 investor presentation (Feb 4, 2021) 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

2. Refer to note 1 of our Fiscal 2019 10-K for details on the impact of recently adopted accounting standards on prior period results.

$2.2B+ investment in R&D over the next 5 years

10.5%

194 M

FY’15


R&D Key Investments

• Ethical supply chain risk and

reputation visibility

• Any-to-Any Connectivity

• Immediate Partner

• Discovery

• Ethical sourcing

• Surveying

• Connectivity

A Revolution in Business-to-Business ConnectionContent Services Public Cloud 21.4

• SaaS Public Cloud Content

Management

• Integrations with:

• SAP S/4HANA Essential

• SAP SuccessFactors

• Expanded integrations with:

• Salesforce

• Microsoft 365 and

• Others

• xECM for Documentum for

Salesforce

• Unification of Carbonite products

in a single console

• Security Products ready for

enterprise

• Advanced consumer mobile

features

• Expanded forensic platform

capabilities including:

• Cloud/off cloud deployment

• OCR

• Social media artifacts

• Cloud artifacts

• Automated workflows

Digital Investigations & Forensics LeadershipDigital Experience Public Cloud 22.2

• Unifying Customer Data

Platform (CDP)

• Design and authoring

• API services

• Expanded omni-channel

capabilities in:

• email

• notifications

• fax and more


Our Growth Agenda

• Cloud consumption

• R&D key investments

• Creating new routes to market


Simon “Ted” HarrisonOpenText EVP, Enterprise Sales


Key Messages

Market Leadership in Information Management

Organic growth driven by direct sales and

strong partner ecosystem

Growth is built into our go-to-market

• Increasing G10K coverage

• New cloud customers

• Cloud upsell and cross-sell

• Migration to Cloud Editions

• Leverage strategic partnerships


The World’s Leading Companies Trust OpenText

89 out of top 100 largest companies in the world1

Great foundation for future growth

1. The top 100 is based on the Forbes Global 2000 listing (2019)

10 of top 10 10 of top 1010 of top 108 of top 10 8 of top 1010 of top 10

Life Sciences FinancialConsumer

GoodsTechnology Manufacturing Telecom


• $24B TAM1

• Market growth rate1 : +11%

• OpenText is a market leader1

• >10,000 enterprise customers

• Growing cloud adoption

How We Grow• Enabling Modern Work

• Platform consolidation

• Integration with SAP Salesforce and Microsoft

• Public sector share gains

• Accelerating cloud opportunities

1. Based on IDC and OpenText internal research.


• $20B TAM1


• OpenText is market leader1

• Fully cloud

• 21 of 25 largest supply chains run OpenText

• 2 million trading partners on our platform

How We Grow• Supply chain disruption and optimization

• International e-invoicing

• New Trading Grid

• SaaS applications



1. Cisco 14. Diageo

2. Colgate Palmolive 15. Lenovo

3. Johnson & Johnson 16. Nike

4. Schneider Electric 17. Abbvie

5. Nestlé 18. BMW

6. PepsiCo 19. Starbucks

7. Alibaba 20. H&M

8. Intel 21. British American Tobacco

9. Inditex 22. 3M

10. L’Oréal 23. Reckitt Benckiser

11. Walmart 24. Biogen

12. HP Inc. 25. Kimberly Clark

13. Coca-Cola

Rankings based on

• Peer opinion

• Gartner opinion

• Return on Assets

• Inventory turnover

• Revenue growth

✓

✓

✓

✓✓

✓

✓

✓

✓

✓

✓✓

✓

✓

Supply Chain Leaders AgreeOpenText Business Network Serves 21 of Gartner’s ‘Supply Chain Top 25’ for 20201

✓

In addition to Gartner’s Top 25

Supply Chains, OpenText also

serves four of five Gartner

‘Supply Chain Masters’:

Apple, Unilever, P&G and

Amazon

✓

✓

25

Supply Chain Top 25✓

✓

✓

✓

1. "Gartner Supply Chain Top 25 Results for 2020", Mike Griswold, June 26, 2020


• $21B TAM1


• Leadership in omni-channel communications1

• Growing cloud adoption

• Web Content Management

• Digital Asset Management

• Customer Experience Management platform

How We Grow• Integrated DXP platform offering

• Remote customer engagement model

• High-availability cloud services

• Google partnership



Complete Go-To-Market Coverage

Enterprise Solutions

Engage, service and support customers when, how and where they want

2,000+

Field Facing

Professionals

Direct Strategic Partners

Digital Zone

Web


The OpenText Go-to-Market Model

Enterprise

Account

Executives

Inside Sales

Representatives

Global Account

Managers

Partner Account

Managers

Value Engineers

Business

Development

Managers

Solution

Consultants

Account

Development

Representatives

2,000+ Field-Facing

Sales

Professionals

Enterprise

Accounts

Global

Accounts

Corporate

Accounts

High touch model to increase our share of Global 10,000 (G10K) largest accounts spend


The OpenText Digital Zone: Reducing Friction in Customer Engagement

• March 2020: all meetings became remote; all events became virtual

• OpenText’s response: the Digital Zone; an online location for interaction, and knowledge center

for customers in early discovery

• Today: remote face-to-face sales meetings are at an all-time high, customer attendance to virtual

events is 300% higher than in-person

Personalized

Assets and

Webinars

Self

Service

Demos

Try

Before

You Buy

Digital

Events

Platform

Account

Based

Marketing


New Customers: Broadening our G10K Coverage

Europe

(66%)North

America

(76%)

APAC

(39%)

Japan

(39%)

Emerging

Markets

(26%)

Latin

America

(36%)

• Marquee customers with

transformative requirements

• Covering 58% of the G10K,

increase of 18 percentage

points since 2019

• 4,500 covered in FY20,

tracking 5,800 in FY21

• On track to reach full

coverage by end of CY23

Current Coverage


Key Growth Opportunities

Cloud New

Customers

• Plan to achieve 100%

coverage of G10K

• Competitive displacement

programs

• OT ‘Sales University’ for

rapid on-boarding

Cloud

Expansion

• All G10K customers have

high-touch Enterprise AE’s

• Adoption and consumption

is driven by new use-cases

• Customers’ digitization

journey drives continually

increasing consumption

Cloud

Cross-Sell

• Complementary products

arranged by BU

• Cross-selling incented

throughout company

• Packaged solutions cross

product families

Cloud

Migration

• The opportunity for R16

customers to take advantage

of Cloud Editions

• Opportunity to consume both

private and public cloud

• A multi-year opportunity

• We also continue to invest in

our off-cloud

OpenText Partnerships

Hyperscalers, Global System Integrators, OEM, VAR, Distribution,

Technology Partners, Developers


Key Growth Opportunities

Cloud New

Customers

Cloud

Expansion

Cloud

Cross-Sell

Cloud

Migration

OpenText Partnerships


OpenText Strategic Partnerships - Examples

Platform Partners Market Partners


Our Growth Agenda

• Go-to-market expansion

• Full G10K coverage

• Grow with OpenText program

• Cloud Edition consumption


James McGourlayOpenText EVP, Customer Operations


Key Messages

Consistent growth and profitability driven by:

• Satisfied customers

• Proven renewals process

• Pricing/packaging/contracting

• Global team of customer operations professionals

Clear path to growth through:

• Proven value of our product and security updates

• Expansion at time of renewal

• Annual price uplifts


Customer

Satisfaction

(CSAT) 11 Net Promoter

Score (NPS)96%

Customers’ Satisfaction Drives Growth and Profitability

Highest

Quality

High

Availability

Complete Voice

of Customer

Expansion

Opportunities

Rapid

Deployment


The Digital Zone: Improving the Customer Experience

Reimagining

Customer Support

• Starting with the customer

experience

• Customer self-service

• Data-driven response

automation

• Data and insight to speed

feedback on product

usage and opportunity

Digitizing Renewals Harnessing AI

• Automated renewals

• Customer outreach

• Predictive analytics

• Risk identification

• Expansion opportunities

• Renewal risk scoring

• Identifying expansion

opportunity

• Virtual assistant


OpenText Renewals

Systems & Reporting

Policy, Controls& Procedures

Expansion

Upgrade & Migrate

Partners

Community Model

Business Intelligence

Magellan Advanced Analytics

Customer

Feedback

Data

Sentiment

Analysis

Customer

Satisfaction

Data

Trouble Ticket

Information

Renewal

Behavior


Sustainable Growth

Off-Cloud

Cloud

94%Renewal Rate1

96%Renewal Rate1

• Compelling product and

security updates

• Proven highly effective

model of Land, Adopt,

Expand, Renew (LAER)

• Provide best in class

expertise both in systems

and people

$1,080

$2,433

FY'14 FY'20

125%

A-EBITDA Margin(1)(2)Annual Recurring Revenue

(ARR) ($US M)

1. For the quarter ended December 31, 2020. Excludes Carbonite

Targeting Upper

Quartile Renewal

Rates


Net Uplifts and Expansions

• Cross-sell/upsell at renewal

• Expand product offerings at renewal

• Annual uplift

• Renewal teams to sell more product

94% Renewal Rate1

Off-Cloud Renewals

96% Renewal Rate1

Cloud Renewals

1. For the quarter ended December 31, 2020. Excludes Carbonite

Net U

plif

ts

• Higher volume and workloads

• Expansion at the time of renewal, particularly BN

• Early renewals at higher tier and extended life

• Additional applications

• Managed Service upsell of revenues

• Service programs

Net U

plif

ts


Customer Success Story

Case study:

Documentum customer since 2001

• Over 20 business applications now leveraging Content Server

Business Network client since 2009

• Utilizes the entire portfolio of OpenText’s Business Network products and services

• 70% of all Nestle’s EDI traffic is conducted on the OpenText platform


Our Growth Agenda

• Compelling product and security updates

• Systematic value capture through pricing and packages

• Expansion at time of renewal

• Sustained high renewal rates


Prentiss DonohueOpenText EVP, SMB/C Sales


Key Messages

Security & Data Protection Cloud=platform approach

Partner model built for scale

SMB product direct to buyer

Grow Via:

• RMM/MSP expansion

• Reseller development

• Expanding BrightCloud Threat Intelligence OEM

• Unified Endpoint Platform


Growing Cyber Threats

• Data privacy and related protection requirements

• Everything and everyone connected(Modern Work)

• SMBs under increasingly sophisticated attacks

• Vanishing network and security perimeter

• Data migration to the cloud

• Talent shortage


SMB Go-To-Market: Expansion Opportunity

16,000+

RMM & MSPs Resellers

Channels

Engage, service and support customers when, how and where they want

OEM

1,200+

Comprehensive route to market

Direct to Buyer

130+


• $19B TAM1


• Leadership in Data Backup and Recovery1

• Fully cloud

Partner Expansion2

• RMMs

• MSPs

• VARs

• Alliance

• OEMs

• VSBs

2. RMM: Remote Monitoring and Management, MSP: Managed Service Provider, VAR: Value Added Resellers, OEM: Original Equipment

Manufacturer, VSB: Very Small Businesses



Information Management and Cyber Resilience Journey

Aspirational Growth via OpenText Products:

Collaboration | eSignature | On-Demand Messaging


SMB Customer and Cloud Scale

Threat

Intelligence

Partners

130+

Protected

Businesses

470K

Endpoints

287M+

Direct to Buyer

7M+

Data Objects

Analyzed Daily

500B


Competitive Advantage: Single End-to-End Platform

Protect

Recover

Backup

Investigate

BlockWebroot DNS

Protection

Carbonite®

• Endpoint

• Backup for Microsoft 365

• Server Backup

Carbonite®

• Recover

• Availability

Webroot Business

Endpoint Protection

EnCase products

Modern Work


Expanding Our Threat Intelligence Business

130Networking Providers

• Payment providers• Insurance• Hyperscalers• General B2B • Systems vendors

Targeting 1,000+Technology Providers


Pro

du

ct

Oth

er

Broad Recognition from Customers and PartnersC

han

nel


Our Growth Agenda

• RMM/MSP expansion

• Reseller development

• Expanding BrightCloud Threat Intelligence OEM

• Unified Endpoint Platform


Gordon A. DaviesOpenText EVP, Chief Legal Officer & Corporate Development


Key Messages

• Solid history of strategic, disciplined, value-

based acquisitions

• Strategic M&A has provided the foundation for

our Information Management business

• In-house, full suite, end-to-end acquisition and

integration framework

• Market opportunities across all core markets


Strategic M&A: Foundation for Our Business

2014 2016 2017 2019

Various

HP Assets


Total Growth Acquisition Philosophy

Carbonite Case Study

Acquired • 12/24/19 for 2.8x revenue1

Strategic

Rationale

• Critical mass in Security & Protection

• Scaled SMB channel

Revenue

Synergies

• Strong growth prospects

• Cross-sell opportunities

• Increased corporate ARR

Expense

Synergies

• Increased cloud margins

• On target model in <12 months

Improved cash conversion cycle

We are:

• Patient and disciplined

• Value-based

• Returns driven

Target characteristics:

• IM market leadership

• Significant ARR

• Cross-sell/upsell opportunities

Bring assets into Organic Growth:

• In-house expertise in diligence and close workings with the business

• Provides an excellent framework to bring all assets to organic growth

1. Total purchase price is approximately 2.8x TTM (Trailing Twelve Months) Carbonite GAAP revenues (as of September 30, 2019), inclusive of annualized

full year reported Webroot GAAP revenues, a significant acquisition which closed in March 2019


Proven Successful M&A Process

Pre-Integration and

Integration

Market

Segmentation

• Provide support for all

aspects of pre-integration

and integration planning

• Project management

• Continuous performance

tracking post-acquisition

Pipeline Generation

and Deal Execution

Sales and Product

Analysis

Financial Analysis

and Strategy

• Provide support in all

financial elements of target

identification, acquisition

business models, and

integration KPI tracking

• 5 GTM deal teams aligned

to our businesses

• Generate and own M&A

target pipeline

• Negotiate and close

transactions

• Support product,

engineering and GTM

M&A due diligence and

integration activities

• Provide market

segmentation analysis to

support target

identification, M&A

market dynamics, and

M&A due diligence

analysis

Source Engage Diligence Acquire Integrate

25 dedicated professionals


Corporate Citizenship Reflects our Culture

Progress We’ve Made:• First Corporate Citizenship Report published

• Identified ESG reporting gaps and increased

disclosure

• ESG ratings improvement

• Disclosure gap analysis

• OpenText Acts of Kindness

• Voyager Fund

Where We’re Going:• Implementing reporting best practices

• Industry reporting framework adoption

• Invest in initiatives to increase disclosures

• Continue improving ESG ratings

ESG Ratings Improvement

https://www.bloomberg.com/impact/products/esg-data/

https://www.robecosam.com/csa/

https://www.ecovadis.com/supplier-solutions-2/

https://www.msci.com/esg-ratings/issuer/open-text-corporation/IID000000002128510

https://www.issgovernance.com/esg/ratings/environmental-social-qualityscore/


Our Growth Agenda

• Focus on value-based, returns driven opportunities

• We expect to deploy capital in CY’21

• Lead by example in Corporate Citizenship


Madhu RanganathanOpenText EVP, Chief Financial Officer


Key Messages

• How we create value

• Strategic and continuous investments to drive organic growth

• A profitable and predictable business

• Financial strength for returns-driven capital allocation

• Operating and DnA 2.0 (Digital and Automation) initiatives

• FY’21 outlook and long-term growth aspirations

• Our growth agenda


How We Create Value

Value

Growth

Capital Efficiency

Profitability

• Strategic-oriented acquiror

• Target ~20% TTM FCF for dividends

• High-teens ROIC

• 12.5% Total Revenue CAGR (FY’13 to

FY’20)

• Our business is predictable at 80% + ARR

• F’22 outlook of 1%-2% Total and 3%-4% Cloud organic growth

• Strong M&A pipeline and new deals additive to our total growth

• 2Q FY’21 TTM Adj EBITDA1

margin of 38.8% with long-term aspiration of 38% to 40%

• TTM FCF1 of $1.1B, with long-term aspiration of $1.1B to $1.2B

• TTM FCF conversion2 of 32%

Growth

Profitability

Capital Efficiency




2. FCF conversion is FCF as a % of Total Revenue for 2Q FY’21 TTM


Strategic & Continuous Investments to Drive Organic Growth

Upper Quartile position for A-EBITDA Margin and

FCF Conversion % (FCF/Total Revenue)

Investing in Growth

• TTM R&D = ~$400M & +$2.2 B investment over

the next 5 years

• Direct sales model, strategic partnerships,

channel-first SMB

• 2,000 field-facing direct sales professionals, high-

touch model for Global 10K

• Acquisitions to operating model - GXS, ECD,

Carbonite - all integrated in 12 months or less

• Key driver for innovation and organic growth

Fiscal 2019

Results

Fiscal 2020

Results

Fiscal 2021

Model(2)

Revenue Type:

Cloud Services and Subscriptions 31.6% 37.2% 41% - 43%

Customer Support 43.5% 41.0% 38% - 42%

Annual Recurring Revenue (ARR) 75.1% 78.2% 81% - 83%

License 14.9% 13.0% 9% - 12%

Professional Services and Other 9.9% 8.8% 6% - 9%

Non-GAAP Gross Margin

Cloud Services and Subscriptions 57.8% 61.3% 63% - 65%

Customer Support 90.1% 90.4% 89% - 91%

License 96.6% 97.2% 96% - 98%

Professional Services and Other 21.8% 22.7% 20% - 22%

Non-GAAP Gross Margin(1) 74.1% 74.5% 74% - 76%

Non-GAAP Operating Expenses:

Research & Development 11.0% 11.7% 12% - 14%

Sales & Marketing 17.8% 18.5% 18% - 20%

General & Admin 6.9% 7.3% 6% - 8%

Depreciation 3.4% 2.9% 2% - 4%

A-EBITDA Margin(1) 38.4% 36.9% 37% - 38%

Free Cash Flow Conversion(1) 28.3% 28.4% 32.4%(1)

Capital Expenditures (USD M) $64 $73 $85 - $95

1. Please refer to “Use of Non-GAAP Financial Measures” in the Q2 FY’21 Investor presentation (February 4th, 2021) 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.

2. This model is not guidance.


A Profitable and Predictable Business Model

54.2%54.4%

61.5%

66.5%

72.2%73.9% 73.6% 73.2%

75.1%

78.2%

18.1%

28.4%29.7%

36.9%

0

FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20

FY’21 Model:

81%-83%

TTM Q2 FY’21

32%

FY’21 Model:

37%-38%

A-EBITDA Margin(1)(2)Growing ARR, Expanding Margin and Free Cash Flows1,2

1. Please refer to “Use of Non-GAAP Financial Measures” in the Q2 FY’21 Investor presentation (February 4th, 2021) 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.

2. Refer to note 1 of our Fiscal 2019 10-K for details on the impact of recently adopted accounting standards on prior period results.

ARR % of Total

Revenues

A-EBITDA1

% Margin

FCF1

% of Total

Revenues


Operating Cash Flows $1,126

Less: CapEx $57

$10Less: Principal2

TTM Q2 FY’21 (US$ M)

1. Consolidated Net Leverage Ratio (pro forma) is calculated using bank covenant methodology.

2. Excludes $600 million repayment, from cash on hand, of funds previously drawn on the Revolver during the three-month period ended December 31, 2020. As of December 31, 2020, we had no outstanding balance under the Revolver.

3. Corporate purposes may include Total Growth Strategy, debt repayment, share repurchases, or other initiatives.

4. Please refer to “Use of Non-GAAP Financial Measures” in the Q2 FY’21 Investor presentation (February 4th, 2021) 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.

Consolidated Net Leverage Ratio1 Highlights

Financial Strength for Returns Driven Capital Allocation

Cash Generated

for Corporate Purposes3 $863

$196Less: Dividends

Free Cash Flows $1,069

FCF conversion %

(FCF / Total Revenue)4 32%

A-EBITDA4 to OCF conversion % 88%

From Carbonite

($1.4B) acquisition,

reduced leverage

from 2.28x to 1.60x

in less than 12

months

2.28x

1.60x

Q2 FY'20 Q2 FY'21

Carbonite

ECD

Guidance +

Covisant

2.50x 2.61x

1.72x

Q3 FY'17 Q1 FY'18 Q1 FY'19

Solid De-leverage

From ECD ($1.6B),

Guidance &

Covisint ($306M),

reduced leverage

from 2.50x to 1.72x

in < 2years


Operating Framework to Drive Growth

Renewals and Support

• Radical automation –

Cloud/Off-Cloud

• Sell more product and value

• Highest return on invested $

Gross Margin

• Cloud - low/mid 60s in 12 months:

frictionless cloud process

• DevOps automation

• Software COGS = 100 - 200 bps

Research and Development

• Returns based R&D

• Higher automation across R&D

• Self-service and low touch

products

Sales and Marketing

• Higher ROI on selling efforts through Digital Zone

• Scale channel first SMB model

• Automate demand creation: faster GTM and higher ROI

General and Administrative

• Non-linear resource growth vs.

linear revenue growth

• Automation - beyond ERP

• Carry forward Covid-driven value

gains to Modern Work


DnA 2.0 – Digital and Automation Initiatives

Automation from transaction

levels to Value and

Innovation

Higher leverage of core

internal systems – SAP,

Salesforce, Microsoft

Centralized Procurement and

Supplier org will enable higher

efficiencies and online

transaction processing

Quote, Billing and

Collections – increased AI

and ML capabilities

Reimagining Customer

Experience through

investments in Digital Zone

• Digitization to support long terms aspirations for growth, margin and free cash flows

• Drive non-linear growth of resources for linear growth in revenues

• Leadership at all levels will become Digital Sponsors & Program Managers, leveraging OpenText solutions

Modern Work: Covid driven

productivity drivers to continue

and deliver higher ROI

Examples: Pre-sales, Professional Services


The Information

Management Journey

Cloud

Editions

The Intelligent,

Secure and

Connected

Businesses

Digital

Experience

Data

Protection

& Security

Business

NetworkModern

Work

Advanced

Technology &

Experts

All Points of

Departure

GROW with OpenText

The Ultimate Cloud™

OpenText Cloud Editions


FY’21 OpenText Total Growth Strategy

1. As of February 4, 2021.

2. All dollars in USD millions.

New M&A

Cloud

Total Revenues

Customer Support

License

ARR

$1,157.7

FY’20 Actual2

$3,109.7

$1,275.6

$402.9

$2,433.3

High teens

Y/Y Expected % Growth1

Mid single-digit

Low single-digit

Decline

High single to low-double digit

Additive

Professional Service$273.6 Decline

Confirming FY’21 Outlook


Our Financial Outlook1

M&A will be additive

Total

Revenue

Organic

Growth

1%-2%

Cloud

Revenue

Organic

Growth

3%-4%

Introducing

FY’22 Outlook

Total

Revenue

Growth

Mid Single

Digit

Cloud

Revenue

Growth

High

Teens

FY’21 Outlook

Total Growth

1. Revenue % are year over year comparisons

Total

Revenue

Organic

Growth

2%-4%

A-EBITDA

Margin

38%-40%

Free Cash

Flows

(FCF)

$1.1-$1.2B

Introducing

FY’24 Long Term Aspirations

ARR

% of Total

Revenue

85%

Adj. EBITDA Margin over 40% to be re-invested in Organic Growth


Our Growth Agenda

Higher Annual

Recurring Revenue

(ARR) will drive

predictability in

Growth

Cloud revenues

driven by The

Ultimate Cloud™ will

lead Growth

Net uplifts &

expansion will drive

Growth in our

marquee customers

Increased investment in

products and GTM

(direct and channel at

scale) will drive Growth

and market share gains

Adj EBITDA Margin

dollars > 38%-40% will

fuel long-term Growth

aspirations through re-

investment

Operating Excellence,

in all its elements, will

drive Growth,

Creating Value Through Growth, Profitability and Capital Efficiency

Balance Sheet strength

and flexibility for Growth

and additive M&A

Thank you

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