Open Text Corp at Citi TMT Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Maybe just to start, I think it has been a bit of a transition time for the company for OpenText. Maybe we can talk a little bit about what's led to some of the leadership changes and now how you're thinking about that moving forward and what you're looking for in a new leadership team? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 6:50PM, OTEX.TO - Open Text Corp at Citi TMT Conference

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Okay. And as you're looking out in the marketplace for both those roles, what is it that you're looking for? What's kind of the right profile, the right personality type to lead OpenText forward in the future?

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Okay. All right. That makes sense. The pendulum swings the other way --

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Yeah. Maybe again, from a high level, as you think about the opportunity that's in front of OpenText and what would you, I guess, pitch an investor on? What would you say is kind of the core opportunity and strategy for the business today moving forward?

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Sure. Sure. Maybe we can dig in there a little bit just on the future of the OpenText portfolio because I think to your point, there's a lot of business lines, a lot of business units that are within the OpenText arena. So I guess, what do you consider as kind of the core business for OpenText moving forward? And I guess, what do you think of the areas where maybe it makes sense to rationalize and look for opportunities to divest?

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Right. Right. That makes sense. So I guess as you think about this next stage for OpenText and the -- I guess, the pairing of the portfolio, how long do you kind of expect that to kind of take to play out? And I guess, what is kind of the -- I guess, what do you do with those proceeds kind of after the fact?

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Okay. And I guess as we think about that, is there like an approximation for how many units will kind of be --

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Okay. No, I'm sure that would be very welcomed by the investor community. So that's helpful for sure. As you go through this process, maybe this then kind of dovetails into the other part of capital allocation. What do you do with the proceeds? What do you do with the kind of go-forward capital allocation strategy?

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Sure. I guess does it maybe change the mix of how we should think about those buckets between dividends, buybacks and the reinvestment back into the business? Or I guess, primarily want to dig into the last part about investing back into the business and what that looks like moving forward. Is that a continued area? Or is that --

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Okay. Maybe I'll ask a little bit on -- I guess, to that point, now that you've made this investment, what does that mean for kind of go-forward R&D? And I guess, on the other side, since it's now time to go sell, does that mean the mix of sales and marketing should tick up from here? And is it kind of reallocating buckets? Just how do you think about that?

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Sure. Okay. You mentioned M&A before. I do want to ask around kind of what that will look like. But before going into that, just as we think about Micro Focus, maybe we do a little bit of a postmortem on that acquisition. Just what were kind of the learnings from it? What is there maybe that you can apply moving forward as you think about the OpenText strategy from here?

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Sure. Okay. All right. Maybe then dovetails into the other side. Just as you think about the go-forward M&A strategy, it seems like there's some tuck-ins that you would kind of think about. Just how -- what kind of opportunities are you looking for? Maybe what are the areas where it would make sense to kind of lean into that a little bit more versus what are areas maybe you'd be a little bit more kind of cautious about kind of entering?

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : That's really about finding the context that helps you train those models?

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Okay. are there certain, I guess, maybe like technology areas or market expertise or customer footprint that you would be kind of targeting for those tuck-ins or --

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Okay. That makes sense. Maybe wrapping a little bit of a bow on some of the M&A or portfolio side of it. But I guess, once you kind of go through this bigger transition over the next kind of couple of years, what does the new OpenText look like once you're kind of through the portfolio rationalization? And how do you kind of think about -- is it just kind of a content-focused business? Or are there kind of other areas where maybe it makes sense to -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 6:50PM, OTEX.TO - Open Text Corp at Citi TMT Conference

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Okay. That makes sense. We're about halfway through this. If there's any questions in the audience, we want to make sure to get to those. Yes. We have a mic coming. Unidentified Participant So with the strategic changes, what changes in terms of your financial policy with regard to financial leverage?

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : And was there a comment about leverage in there?

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Okay. Perfect. Thanks for that question. I want to dig into the product side a little bit more here. Just on -- I think you talked about we're in a content age. Generative AI is going to be the next -- is the decade for the next -- or the story for the next decade. Maybe we can talk about Aviator. Just where is it at today? How are customers thinking about or adopting that solution set? And what is kind of the future of the generative AI strategy look like for OpenText?

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Okay. No, that's great to hear. And I guess as you think about what the future of the portfolio looks like on the generative AI side, just what does the road map look like? How do you think about the use cases that it makes sense for OpenText to address and own for customers?

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Yeah. No. I mean it's interesting times, right? And how quickly the tech is evolving here. Maybe we can connect it back a little bit to the financial side of the equation. I think Aviators have been out for 2.5, 3 years, something at this point. Just what contribution is that having today to revenue or to bookings? And maybe how do you kind of think about what that means for the go-forward financial model for [indiscernible]? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 6:50PM, OTEX.TO - Open Text Corp at Citi TMT Conference

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Sure. So it's a second order effect.

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Okay. That makes sense. I have a couple of minutes left here. I just want to see if there's any last remaining questions in the room there.

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Yes, right. I think one of the questions we've gotten from investors, just think about the past few years, what can OpenText do to kind of like improve execution and just kind of get back on kind of a steady foot and improve that moving forward?

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Okay. That makes sense. In the last minute here, let's think out five years, we're kind of through all the -- kind of what the core OpenText is at that point. What does the business look like? And maybe what are we kind of talking about what OpenText is moving forward as we get to that time period?

Question: Steven Enders - Citi Infrastructure Investments LLC - Analyst : Yeah. All right. That makes sense. I think we can leave it there. We're out of time. But Tom, I want to thank you so much for being here today. I want to thank everybody in the room for joining us as well.