Open Text Corporation (OTEX) Earnings Call Transcript & Summary

Welcome to OpenText's 2022 Investor Day. I'm Harry Blount, Global Head of Investor Relations at OpenText, and I'll be guiding you through today's event. A year ago, we hosted our first virtual Investor Day, which allowed many of you to join from the comfort of your offices and your homes. Today, 1 year on, our leadership team is excited to be presenting live from Silicon Valley. Today's event will last approximately 3.5 hours with a 15-minute break at around 12:30 Eastern. The presentation will be followed by a question-and-answer session. [Operator Instructions] If we are unable to get to your question, please feel free to e-mail us at [email protected] after the conclusion of today's program. Today's presentation, including the Q&A session, is being recorded and a replay will be available on our Investor Relations website, investors.opentext.com shortly after the event. The upcoming presentation slides will -- are also available for download on our Investor Relations website. Before we begin, I'd like to draw your attention to our safe harbor statement. During the course of today's presentation, we may make statements relating to the future performance of OpenText that contain forward-looking information. While these forward-looking statements represent our current judgment, actual results could differ materially from a conclusion, forecast or projection in the forward-looking statements made today. Certain material factors and assumptions were applied in drawing any such statement. Additional information about the material factors that could cause actual results to differ materially from a conclusion, forecast or projection in the forward-looking information as well as risk factors that may project future performance results of OpenText are contained in OpenText's recent Form 10-K and 10-Q as well as in our press release that was distributed earlier today and may be found on our website. We undertake no obligation to update these forward-looking statements unless required to do so by law. In addition, our conference call may include discussions of certain non-GAAP financial measures. Reconciliations of any non-GAAP financial measures to their most directly comparable GAAP measures may be found within our public filings and other materials, which are available on our website. And now we will be kicking things off with a short video, followed by welcoming remarks from OpenText CEO and CTO, Mark Barrenechea. [Presentation]

Welcome. Hello, everyone, and welcome to our 2022 Investor Day live from Palo Alto. The OpenText leadership team is excited to engage with you today and to take your questions at the end of our presentations. . We're grateful for the partnership. We're focused on making the right long-term decisions that create value. OpenText continues to accelerate its journey to be the leading information company in the cloud. Today's agenda is going to be centered on our functional excellence, total innovation, our go-to-market, our operating platform, our financial strength, the underpinnings of which is our acceleration into the cloud. The information management market is large, of high value and a relatively fast-growing segment. You'll see today that this is a $92 billion market growing at a 9% CAGR and accelerating into the cloud affords us the opportunity to grow even faster. You'll hear today focused execution in our total growth strategy with a clear set of strategic priorities. Today's presentation is a growth foundation to continue the discussion in the quarters ahead. There's a few things I'd like you to take away from today's remarks. The first is we are recognized for our leading solutions in 4 large and relatively fast-growing information management segments, Content Cloud, Experience Cloud, Business Network Cloud and our Security and Protection Cloud. The growth is enabled by several secular forces, particularly ongoing digitalization to create modern work for employees, improve customer experiences, new supply chains, and security and protection underneath it all underpinned by growing commitments to sustainability. What you'll also hear today is we're accelerating our journey into our Business Clouds, our Developer Cloud, our Digital Zone and our Digital Ecosystems. We're going to spend a lot of time today on ecosystems. Soon, 80% plus of our R&D investment will be focused on cloud-based technologies. Our multifaceted go-to-market model ensures that our great offerings get adopted and continue to be used by customers that is complemented by world-class renewals and expansion capability. We have a business operating model that delivers profitable organic growth, a cornerstone of our overall approach to shareholder value creation. We have the organization and capability, and we'll continue to be disciplined acquirers and effective integrators as part of our total growth strategy. We will share our plans, our confidence and our short-, medium- and long-term financial aspirations, including for the short-term organic growth, 3% to 4% total growth and up to 10% double-digit cloud revenue growth for this fiscal year. On the medium term, up to 4% total revenue growth by fiscal '24. And for the longer-term, investments to be #1 in each of our clouds to generate a cumulative $6 billion plus of free cash flow over the next 5 years, which underpins our aspirations to double the company again. We're fortunate to have an amazing, diverse workforce and leadership team and Board that you can count on to deliver. On a human level, strong forces either rip you apart or bring you together. The world has experienced many overlapping crises over the last 2 years from COVID, social injustice, talent dislocation, inflation and now Russia and Ukraine. At OpenText, we've relied heavily on our culture, our talent, our technology, our customers, our shareholders and our core principles. You'll see today deep resolve, resilience and energy as these forces and events have only strengthened OpenText for a better future. We stand with Ukraine. We pray for the peoples of Ukraine for a world united and may the one that bring peace, bring peace to all. So let's get started with our prepared remarks. OpenText in a snapshot. You'll see our key statistics, a leader in content management, leader in business network. We're going to detail today a $92 billion total addressable market; 40 of the top 50 supply chain; 75,000 enterprise customers; over 800,000 SMB customers. And for our total market coverage, over 3,000-plus field-facing professionals. I'll speak a little bit about ecosystems coming up. We have over 23,000 MSPs. We have incredible distribution with the world's largest technology platform such as SAP, GCP, Azure, AWS. Let me make an observation very early on here that looking back over the last 4 to 5 years in the cloud, I can't find a customer that has made a single cloud decision, a sole cloud decision for only 1 cloud provider. Said differently, every customer has made a multi-cloud decision. Every customer has made a multi-cloud decision. That is an incredible asset and observation for OpenText to leverage as we are an integrated platform across the hyperscalers. We have our Digital Zone, a place we're going to conduct business. So we have great total market coverage from direct distribution to digital. And you know our financial highlights well, but I'll shout out a few. Trailing 12 months looking back over the last 4 quarters, $3.4 billion in total revenues. Our ARR is over 80%. Cloud revenue, $1.4 billion. Our revenue CAGR over the last 8 years, 12% ARR over that period, up 16%. Our cloud revenue over that period, up 29%. And then you see the absolute quantum in the lower right-hand part of the slide in the graphs. Let me talk a bit about our advantaged assets and our capabilities. In the center here, of course, is our customers. We have a customer-centric culture at OpenText. And surrounding that are the people, platforms and products, speed and scale, really important and ecosystems. These are advantaged assets and capabilities at OpenText. On the ecosystem side, and this is an advantaged asset and capability, you're going to hear us emphasize more. 1 million-plus training partners in our business network, 23,000 MSPs and growing and our strategic partners to support customers' multi-cloud decisions. This is an ecosystem. It's an advantaged asset and capability, 15,000 -- approximately 15,000 global employees. I'm very proud on behalf of our talent to say that we were recognized as one of Forbes' top companies, most admired cultures in Canada as well as a top employer for young people in the Waterloo-Kitchener area. Another advantaged asset and capability, obviously, is our platform and our products and our modern business cloud. I'll touch briefly on these in my presentation, Muhi will go into depth. And then speed and scale. I said this, oh, 1 to 2 years ago, and I'll keep saying it, we've never moved this fast, but we'll never move this slow again. And we're very focused on continuing to move faster and to move faster, you've got to remove friction. So you're going to hear throughout today from our sales and go-to-market leadership of our automation of our programs, our ability to remove friction, the ability to transact faster, the ability for a developer to go faster and get from idea to product to pre-product to production to features in customers' hands as fast as we can. And obviously, scale as well. So we're focused on speed and scale and to get there, one has to remove friction. Our strategic priorities upfront, as you'll hear over the course of today, number one is our existing portfolio, continue to transition our significant and valuable installed base to the cloud. Two, our future cloud platform, create compelling cloud solutions that drive growth and are simple, frictionless and create great outcomes for our customers. Our third priority is new markets. And this is our ability to expand our addressable market and deliver great outcomes in those new markets. You'll hear today about new security offerings. You'll hear about our young but growing API business in other new markets. Customer success and ecosystems, our fourth priority, be the navigator for our customers' entire journey into the cloud and nurture a thriving cloud-based ecosystem. Again, I can't overemphasize the importance of multi-cloud environments of having multiple ERPs, talk to multiple productivities systems to talk to multiple enterprise systems to talk to multiple customer-facing systems across many, many clouds. Ecosystem enablement is a core asset and capability at OpenText. And our fifth priority is to continue to bring our voice into the market to drive growth through compelling propositions and ensure every customer and every partner understands the value of working with OpenText. So I'm now going to speak to where we compete. We're focused on 4 large and growing information management segments with secular trend supporting sustained and strong growth. The macro frame I'm about to layout is digital investment to grow 17% in the coming years. And sustainability is now a core value at OpenText. One another observation is that all G10000 have made 2030 pledges. And we're going to help them go from pledge to program, and sustainability is a new growth driver as companies move from those pledges to programs. These programs will require the effective use of information to drive efficiency, minimize input yields and otherwise track and report outcomes. We have a role to play in this. The information management segment is $92 billion, growing at 9% CAGR. And let me get into this. We want to present today a more detailed view of the information management market segmentation. So we're presenting this data today. Across the columns, our strategy is to cover from small business, medium business, midsized enterprise. My hands probably don't line up with the slides on your screen, but I'm doing my best I can, large enterprise all the way over to the full TAM. So Content Services from small business to large enterprises is roughly $24 billion. For the Business Network across small business to large enterprise is $22 billion. Digital Experience from a small business to large enterprise is $25 billion and Security and Protection from small business to large enterprise is roughly $20 billion, and that's $92 billion in total, 9% CAGR. We'll use this frame in the quarters ahead to layout our strategies. Today, we'll use this frame to talk about our go-to-market, our investments and the progress we're making across these functional domains, and our customer segmentations. So you asked us to present a bit more data on how we view the market, and we hope this hits the mark. The larger frame and one d1 of the reasons to be excited about information management, to be excited about this market segment, why to invest in this market segment. I think that one of the best reports out there is from IDC. And IDC lays out in a great amount of detail, digital investment to grow 17% in the coming years. And you can see that graphically over to the left, investing about $5.4 trillion to $6.3 trillion up 16.5% in the coming years. And the center is sort of the FutureScape of where much of that investment is going to make. Let me highlight a few. And the upper right quadrant of this 5X5 is digital carbonization and digital up there to the upper right; just to its left, double-digit investment growth, 16.5%. Digital dream teams, let us not forget, it's humans driving the edge in the cloud and a reinvestment in IT, a reinvestment in the CIO or reinvestment in procurement organizations, a new digital skills that have to come into place. And over there on the left-hand side, digital GDP rules capturing all transactions that are going digital. So it's a real nice frame to set up some of those secular trends that reinforces our relevance and importance in information management. And a few comments from me off to the right is business transformation is obviously information led, digital platforms are the key enablers for transparency, transformation and resilience, customer experience is paramount, employee experience at the core, all transactions are going digital, hybrid work is here to stay, and the future of work is sustainable and inclusive. So I think this is a great reinforcement and set of imperatives for information management and why this is a sector we're focused in and so should you. Let me talk a bit about sustainability. It's both a core value at OpenText and a secular growth driver. I harken back to digital. In the early days of digital, those companies who looked at digital and said, it's just a program. We're just going to add on to the work list and it's just one more thing for the company to do. First, they got it wrong, and it was a wrong approach to driving sustained change. So the same thing around sustainability in equity and diversity and inclusion. If it's just a program, you've already lost. No, this is a value. This is a culture. This is a belief and it's got to permeate through everything that you do. And we believe that this is a core value of OpenText. We have found our center that the future of our growth is both sustainable and inclusive and it's a secular growth driver. So we've launched our OpenText Zero Initiative, and by 2030, we have pledged 0 waste, 0 barriers and 0 emissions. I won't go too deep into our 2030 pledge that we call the OpenText Zero Initiative, except to say we're committing to 0 waste from operations. We're committing to a science-based emissions reduction of 50% by 2030 and complete by 2040, and on 0 barriers, we are striving to be a majority diverse company by 2030 to have parity in our key roles, developers, sales professionals, delivery professionals, and have 40% females in leadership positions as defined by manager upwards in the organization, which means we have to double the female leadership inside the company. We're already in the upper quadrant in our gender representation. So we got some ambitious goals for 2030, but it's part of our culture, it's part of our value system, and we believe this to be a value driver in the marketplace and match this up to all Global 10000s have now made a sustainability pledge. L'Oreal, one of our customers, driving complete changes in their supply chain. Nestlé will have our greenhouse gas emissions by the end to reach net zero by 2050. Bank of America, one of our partners on mortgage processing dedicating $1 trillion in assets. Honda, one of our customers on the business network driving 100% electrification. Shell, you heard Shell speak as well as L'Oreal at our recent OpenText World Day carbon neutral by 2050. These aren't just pledges, they're programs, and we're going to work closely with the Global 10000 as they drive towards pledge to program. I want to speak now a bit to how we compete. We're systems oriented at OpenText. And we've created the OpenText Business System. We continue to refine our operating model that combines a number of interlocking strength to consistently deliver profitable organic growth. That profitable organic growth is part of our total growth approach that aims to deliver consistent, high total returns to shareholders via organic and acquired growth and high cash returns. So let me get into a little bit of how we compete. Let me start with our Business System, how we create value. We have our operating model, and we have our shareholder value creation model. In the operating model, these are things we believe deeply in how we operate the company, total innovation. We manage a portfolio. You'll hear Muhi speak today on the portfolio management of the big bets to drive growth, the foundational aspects, places where we're, how should I say this? We're a bit more on the big R and little D, areas where we're applying more dollars to research for future growth. We're typically, I'd like to say we're the big D and little R. We're moving a little more to like medium-sized R and big D, and we call this our total innovation approach, ecosystem building, operational excellence, inclusion, sustainability. And at the end of the day, the best teams win. So this is part of our operating model. You're going to see the best team today. Our shareholder value creation model. It's our operating model for profitability. It's our disciplined strategic acquisitions. It's capital efficiency and returns, and it's a view of the world through cash and cash-based returns divided by a strong view on return on invested capital for the capital in which we invest. Our vision is clear in information management. And I'm not going to go deep into the business clouds, the Developer Cloud, the Digital Ecosystem, the Digital Zone. And then we kind of layout the framework, Muhi's going to double click on this and go deeper. First and foremost, our vision Information Management is to be #1 in our business clouds, Content Cloud, Business Network Cloud, Experience Cloud, and Security and Protection Cloud. Those are the 4 big business clouds that we have, supported by our Developer Cloud today. And we have OpenText World in June, which we're going to do live from Germany, and we're very excited to bring our European customers together and our developers together in Germany. But there's going to be a lot of good news coming along the next generation of these business and Developer Clouds. But I want you to think in terms of the business clouds, these 4 clouds, Content, Business Network, Experience, Developer and Protection, the Developer Cloud, where we're bringing our APIs to market and all the resources to build on top of that frictionless. And then we have our Digital Zone is the enablement platform. It's the resource platform. How do I get support? How do I renew? How does an SMB partner transact and buy in provision? And again, how do we renew and provide all these services. Where can I sign up to get training and education. So this is what we call the digital zone. It's the place to do commerce with OpenText from our VARs, our MSPs all the way up to our enterprise customers. And then we're building out our digital Eco zone -- digital ecosystem. This is the framework of our vision in Information Management. And when you deconstruct that as to why OpenText, where we're going next and our reach and our impact Now we wanted to put this materials in here. I'm not going to go through the 24 cells on the slide. But this is a -- we're going to -- we're laying -- we're presenting kind of a baseline for our discussions in the coming quarters. So but we wanted to lay out why OpenText? Where we're going next? And our reach and impact. And over on the reach and impact, 1,700 private cloud customers in the Content Cloud alone. Business Network, 1 million-plus trading partners. Experience Cloud, our volume is up over 200% on the transactions we're processing. Security and Protection Cloud, 23,000 MSPs, 285 million endpoints. And on the Developer Cloud, 25 APIs, over 500 customers 100% cloud native. So we'll spend more time on this in our discussions, but we wanted to get this out there into the public domain. I want to speak to why cloud acceleration matters in our go-to-market. So let me jump right into that. I've talked about this before, but I wanted to say it again. Why cloud acceleration matters. First, it positions us well in fast and faster growing markets; two, customers can achieve faster paths to value in their transformation. So why does cloud acceleration efforts matter to OpenText? As I said in my introductory remarks, today is all going to be about our acceleration into the cloud. It enables ease of use and increase consumption by our customers as comparatively low friction and go-to-market motions, allows for more rapid entry into new markets for us like APIs, SMB and otherwise, and it's an essential building block for the next wave of transformation, the next digital ecosystem, the next digital supply chain, the next digital GDP. So cloud acceleration matters, and I wanted to reemphasize the point. So how we go to market? SMB and over the last 6 to 12 months, Ted, James, Prentiss have been working on -- Kristina have been working on an integrated go-to-market and creating integrated go-to-market motions. And you're going to see that today from all the way from the top of our go-to-market pyramid, if you will, of how we go from direct sales with global accounts to name into corporate accounts to partner coverage, strategic partners, global channels from MSPs, VARs, distributors and RMMs, down to prosumers, same product, different channel, same product, different channel down through retail and e-commerce. You're going to hear us throughout today a set of total growth programs and investments, and these are really important, right. New native cloud platforms, full G10K coverage by the end of '23, our Summit program to go reach the top of the market. Our competitive replacement programs, primarily on IBM and SPS Commerce. James is going to talk about doubling our international sales, a dedicated, centralized services and renewals organization, international expansion, new markets APIs, MDR as a service. Our support for multi-cloud and multi-cloud technologies, and again, partners as our force multiplier. The expansion of our 23,000 MSPs, investing in the digital zone for partner enablement and Microsoft as our go-to-market partner on the endpoint. You're going to hear about these top growth programs and investments that we're making. I want to call out our powerful because the underpinnings of all that is our powerful renewals engine. And our acceleration into the cloud enables us to go from a renewal to an expansion focus, right? We have a centralized and highly focused renewals organization. Paul Duggan will speak to this today, $2.7 billion in ARR, 125,000 contracts, 425 renewal professionals and 90% plus customer support margins. The business is up 318% from fiscal '12 through the most recent fiscal year. We've learned through cascading crises, just how important OpenText is to customers. And that's reflected in the stability and growth of our renewals business because renewals business is an update service. It's a security service. It's an advisory service. It's a knowledge base. It's the foundation of digitalization for our customers. So we're excited. I'm excited to see Paul's presentation to you today. The other key aspect in our successful formula is our talent. And we have a deeply talented and experienced leadership team. Madhu; Muhi; Ted; James; Prentiss; Kristina; Paul; Sandy, who's joined us recently; Doug Parker; Brian; Renee; and Michael Acedo. You'll hear from Madhu today, from Muhi, from Ted, from James, Prentiss. Paul. Sandy will join us on stage for our Q&A. You'll hear from Doug Parker today. So we just have an amazingly diverse and deeply talented experienced leadership team. We have a Board of Directors that just is highly skilled with a diverse set of skills and an amazing amount of experience, over 10-plus years tenure, over 80% independents. My next set of remarks are centered on M&A, value creation and total shareholder return. And I'm going to start with M&A and strong capital return. On free cash flows, you can see our progress over the last 6 fiscal years, up 82%. The $812 million from last fiscal year is also inclusive of our $300 million IRS payment but an 82% increase in our free cash flows. Again, in the OpenText Business System, and all business systems are different. Ours is unique, we view the world through a cash return lens, and one of the inputs into that is obviously free cash flows. Our total -- our target capital allocation strategy, which I'll show the quantum on the next slide is we're looking to return 1/3 of our free cash flow via dividends and an anti-dilutive share buyback. And we're on track to deliver this. And you'll see that coming up in the next slide. And the other 2/3 available for corporate purposes. So restating our target capital allocation strategy is 1/3 return to shareholders for dividends and buybacks, buybacks to be anti-share dilutive; and 2/3 for corporate purposes. This gives us all the flexibility to do what we need to do strategically in the market. Cash and committed liquidity, $2.3 billion and our net leverage ratio, 2x and decreasing. You can see since we have initiated our dividend in fiscal '13 through present trailing 12 months -- trailing 12 months, the dividends paid over the 7-year CAGR, the dividend paid increase is 16%. And in our trailing 12 months, we've purchased $210 million -- repurchased $210 million and retired those shares. Last year, fiscal '21, we purchased $119 million shares and retired them. Again, this is our capital allocation strategy, 1/3 of trailing 12-month cash flows via dividends and buybacks, 2/3 available for corporate purposes and M&A. We've also worked hard over the last year and looking at our towers and spans of our debt structure, and we've pushed out our debt maturities profile and we fixed rated our debt. And this is all in our filings. We've discussed this in the past, but I want to bring it all together just here in one slide that this -- we've taken a fixed rate approach to our debt. We've moved it out longer in time and our expense is now no longer vary with inflation. So I couldn't be happier with our debt maturity profile and the fixed nature of that debt. So this brings me to my final remarks. And let me summarize them, and I'll get into each of the slides. For fiscal '22, we see positive organic growth, 3% to 4% total revenue growth and up to 10% cloud revenue growth and an even stronger percentage of new cloud bookings. For the medium-term, which is fiscal '24, our aspirations are up to 4% organic growth, adjusted EBITDA between 38% and 40%. And Madhu will walk through all the supporting details behind this and our longer-term aspiration. So we have our short-term this fiscal year; medium-term through fiscal '24 and even longer-term beyond fiscal '24 and is to be #1 in each of our clouds. Two, to double the company again. We have the vision, the people and all the tools to do this. And over this period, we expect to generate a cumulative $6 billion plus in free cash flow. So we're restating today our total growth strategy for fiscal '22, double-digit cloud revenue growth with our Zix contribution, customer support, and that's 8% to 10% cloud revenue growth. Customer support constant with strong renewals, ARR low mid-single-digit growth or 81% of revenue and very predictable business for us. License being constant. Our off-cloud demand from large and regulated customers remain steady. Professional Services, mid-single-digit growth and total revenue growth of 3% to 4% and a continued track record of growth in the business. Our F '24 aspirations of organic growth up to 4%, and you're going to hear the Strategic GROW with OpenText programs for my colleagues today. ARR in the mid-80s. As we continue to grow in the cloud as a percent of total, the predictability of our business will increase even more so. It will go probably from a 1% tolerance to like 0.5% tolerance over the next -- through fiscal '24, resulting in an 85% ARR. Adjusted EBITDA remain confident that we're going to be in the high 30s, 38% to 40% and this has improved margins through growth, scale and automation. Madhu's going to spend particular time on this. By fiscal '24, $1.2 billion in free cash flows, targeting the upper 20% as a percent of revenue and again, 33% on free cash flow. This brings us to our longer-term aspirations in Information Management. Be #1 in every cloud, #1 in Content cloud, #1 in Business Network Cloud, #1 in Experience Cloud and #1 in our Security and Protection Cloud. We believe this will be the force with M&A to double the company again over the next 5 to 7 years. And over that 5-year period, we expect to generate $6 billion plus in cumulative free cash flows. So a big thank you from me. We like to say internally CAVU, Ceiling and Visibility Unlimited. when we were together last, I held up a football. So today, I'm going to hold up a CAVU sign. We like to say this internally, CAVU, Ceiling and Visibility Unlimited. And as we take open the OpenText Cloud to a new altitude and attitude, I'm very confident you're going to see that today. So we're about to go to video. But before we do that after the video, it's going to be my distinct pleasure to have Muhi Majzoub join us, my copilot, my technology copilot and our Chief Product Officer. So let's go to video, and then we'll hand it to Muhi. [Presentation]

Good morning, good afternoon, and welcome to Investor Day. It's a pleasure to be with you today and talk about Grow with OpenText and our innovation agenda. Today, I'll talk about a few things: our market leadership in Information Management and our key R&D initiatives. I'll speak to our innovation agenda. How we are enabling different ways to consume in the cloud. And I'll speak to our customer relevance in solving the most complex problems. I'll also touch on our focus on growth in each and every one of our 5 cloud. Let me start by sharing with you a history of our innovation. Last year, we spoke a little bit about our history of innovation. This is my 10-year anniversary at OpenText, leading our product development team and our cloud services. Over my time here, we have taken very large innovation projects to move OpenText to the cloud. In 2013, we took on Project Red Oxygen, which was about creating the 5 new product suites that to date still stand to ensure our customers have easy integration and deployment methods of our products and platform. In 2015, we brought Blue Carbon to life, which was about the go-to-market model for on-prem and cloud and expanding new business areas like the business network, AI and analytics. In 2020, we committed to bring all of that to the cloud and bringing Information Management capabilities so customers can deploy and run anywhere in the OpenText Cloud, or any of our partner hyperscalers, Google Cloud, Amazon Cloud and Microsoft Cloud. In 2022, we are delivering The Ultimate Cloud, 4 different ways to consume our solutions and capabilities, off-cloud, public cloud, private cloud and our new API Cloud. And now majority of our investment, as Mark highlighted, 80% of our investment is in the cloud-based technology. And going into FY '23 and beyond, we are looking to deliver an open and integrated public cloud Information Management platform with more public cloud application, deeper integrations into our partner clouds, for example, the Google Cloud, integrating into Google Workspace, into Microsoft Office and M365 and deeper integration into SAP and other partners and entering new markets with our API Cloud. Let me touch a little bit on how we're investing to win. We are investing in organic growth. Over the next 5 years, OpenText will invest $2.3 billion in R&D. This is a great opportunity for me and the team to advance innovation across all of our 5 clouds. We have 4x the development team since 8 years ago. And our team of 4,500 plus are delivering now releases every 90 days. This is very important for our customers because they see their enhancements, they see their request, they see their vision come to life into our products, faster with every release every 90 days. And along the way, we come up with industry-leading technologies and innovation, and that's proven into our 1,000-plus patents that we have. Let me speak a little bit to our market leadership. We are recognized in the market as a leader in every one of the domain. And you see on this slide, our leadership in master modern work and the Content Cloud. You see our leadership in power the modern experiences and omnichannel connectivity in our Experience Cloud. You see our leadership in the Business Network Cloud and our global supply chain. We are recognized because, and we are successful because of a few key areas. One is our customer centricity. We never lose focus of our customer in how we build and deliver to them a secure, a scalable and an agile platform that allow information led transformation for their businesses. Our focus is to go deep in every one of the areas, not to go wide and to build features that helps them transform their processes and give them information. An example of that is helping Nestlé deliver global invoice compliance in 48 countries. We help co-innovate and drive integration into our major software cloud vendors and partners from SAP to Google to Microsoft and AWS. We know our customers are mostly in multi-cloud environment, and they are never in one cloud only, and we have to make that easy for them. Our vision in Information Management is clear, and let me speak to that. You heard Mark mention this slide, and I'm going to double-click on few of the item. We remain very close to our customer, understanding their needs for innovation and supporting their 4 ways to consume. In the Business Cloud, we are very focused on moving deep and rich innovation from cloud single-tenant platform to cloud, public cloud multi-tenant SaaS offering. Let me give you a couple of examples, core content and intelligent capture allowed us to take deep features from our Content Suite and Documentum from our capture solution in a single-tenant and move it to the public cloud multi-tenant SaaS. In our Developer Cloud, we add new APIs every 90 days and with every release, allowing customers to take advantage of our headless services and embed them into their application. And later in my presentation, I'll give you plenty of example how some of our customers are using that. Our digital ecosystem allow our private cloud trading partners and MSP partners to configure, administer, add to their services, add customers and partners to their offering. And our Digital Zone is the one-stop shop to conduct e-commerce where customers can renew services, interact with our engineers and support professionals, consume knowledge and train to our products and services. Let me speak to our customer and how we have information advantage for them. Let me give you a few customer experiences, Volkswagen is an OpenText Content Cloud customer. They consume the OpenText Content Cloud to deliver -- in order to deliver digital process for their electric vehicles processes plus full integration into SAP ecosystems, including Vendor Invoice Management and their employee file and many other processes. Nestlé in our Business Network cloud uses the OpenText Trading Grid to deliver supply chain and EDI technologies to unlock the power of food to enhance the quality of life for all of their customers around 48 countries, including the delivery of global invoice compliance. PG&E in California uses our Experience Cloud to deliver a website when PG&E needed a website to support the emergencies with wildfires in California. They depended on OpenText LiveSite and TeamSite to deliver a highly scalable website for the California customers. F5 is using OpenText Security and Protection to protect its customers from [ bright ] cyber threats leveraging the BCTI, BrightCloud Threat Intelligence Services. And the government of Ontario for millions of their Ontario citizen is leveraging OpenText to digitize their customer experiences using our eSignature and Content Services and Content Cloud application. Now let me dive deeper into each of the clouds. Content Cloud is about mastering modern work. With our innovation road map is focused on delivering core content for public cloud, a multi-tenant solution that bring deep features from our single-tenant cloud and private cloud to the public cloud with geo expansion into the hyperscalers, including Google and Microsoft, GCP and Azure cloud. Achieving U.S. FedRAMP services is very important to us in the U.S. and for our federal government. And we are working hard to be a certified FedRAMP vendor for our U.S. federal government; integrating into leading applications like SAP Salesforce, SuccessFactors, Microsoft Teams and Office 365 is very important to our customers. It gives them a one-stop shop in our core content, fully integrated into all of these relevant system of record. When we face competitors like IBM FileNet, we win because of our out-of-the-box deep integration across front office and back office system. Our multilayered security protocol give confidence to our customers in using the OpenText solution. I'll give you one example, Starbucks, uses OpenText Cloud -- Content Cloud and Extended ECM to store their employee global files and data supporting their hire to retire process, with all the areas in between integration, to back offices integration into front offices Microsoft system. Let me tell you and double-click on the business cloud. Our Business Network Cloud is about digitizing supply chain and delivering a global invoice compliance to customers in 48-plus countries, delivering the ability to do self-service, partner and supplier onboarding capabilities and delivering ERP adapters to the likes of Microsoft Dynamics, NetSuite and many, many other back office system. When we face competitors like IBM Sterling Commerce or SPS Commerce, we win in our cloud because of our multi-tenant solution, our mass network and trading partners with million-plus trading partners. And let me give you an example how Dell uses our trading grid to support and integrate into our call management and routing services and leverage our traditional EDI transaction like purchase orders, invoices and statements. Now let me double click on the Experience Cloud. Experience Cloud, our innovation is focused on predictive segmentation and omnichannel communication. Its focus on understanding our customer journey and be able to provide insights and analytics and content intelligence about this customer journey, a unified personalization and media communication strategy and hybrid connectivity to multiple CMSs and digital access system. Let me speak a little bit to OpenText Exstream, is an industry leader. And when we face competitors like Adobe or Quadient in the market, we win because we help our customers manage communication, activation easily and securely across multiple channels and multiple life cycle from the acquisition, to the engagement to purchase to support and renew processes. For example, L'Oreal uses our digital asset management as the backbone of their marketing operation. We help them engage with new customer across multi-omnichannel and help them optimize their operation and digitize their media processes. Now let me double-click on our Security and Protection Cloud. Our innovation is focused on full suite security capability, backup of endpoint and recovery, endpoint protection and detection and response plus many forensic intelligence and investigation capabilities. We integrate with Microsoft new commerce experience. We deliver DNS-led preventions capabilities and continue investment to deliver capabilities in MDR, NDR and XDR. When we face competitors like Datto in the market, we win because our reach into 23,000 MSPs who have adapted data protection with wide range of backup solution. Our solutions are enterprise. They are built to scale handling an average of 40,000 API calls per second. Security is top of mind in today's world, and we have a multilayered approach to give customers ease of mind that they can catch threats in minutes, not weeks or days. Companies of all sizes are looking for deeper integration and deeper visibility to expose hidden threats across multiple data sources. Let me give you a customer example how Cisco uses our BrightCloud Threat Intelligence in several of its networks. They are leveraging our BCTI service and embedded it into many of their network and security product line, including web filtering, IP reputation and malware identification in real time as traffic comes through their products. Now let me speak a little bit to our Developer Cloud. It's about building an API economy. And last year, when I presented to you, this was very new, and it was the first time we announced our Developer Cloud. Our innovation is focused on building unique set of relevant APIs for Information Management. New ones delivered every quarter, extending our current products and application to be consumed via API and embedded and integrated into other applications that are important to our customers. This gives the choice to our customer to choose how to leverage our APIs and services to buy as a headless API, and embed into their products and proprietary application or to buy an application from OpenText. Engage with our community of 10,000-plus developers to enable them to build the next big application, the next big solution. And we are just helping to build an API management market. Let me give you an example of how SAP uses our Core Capture for SAP. With Vendor Invoice Management, we help them extract invoice data and leverage our machine learning and advanced rules and extraction engine to cleanse and validate the data before we hand it and pass it over to the SAP systems. Now in summary let me speak a little bit to our strategic priorities. You heard me speak to our investment of $2.3 billion in the next 5 years. You heard Mark speak to our 80% of our investment going into cloud technologies. We want to be the #1 in the core markets we operate in. We want to build the cloud platform for the future, giving customers the ease and the 4 different ways to consume in off cloud, private cloud, public cloud and in the API Cloud. We are here to continue to build on the Ultimate Cloud and deliver robust innovation, driving public cloud solution, self-service capabilities and co-innovate with our partners like SAP, Google, Microsoft and Amazon and many more in the future. We are here to ultimately help customer deliver frictionless customer experiences and delivering innovation that delight. And we are here to build a new category and break into new ground and build an API economy that fuel new model for monetization and new products for product innovation. I look forward to the opportunity to share more. As Mark highlighted, we look forward to seeing you at OpenText World Europe in June and then in the [ fall season ] in the Americas at OpenText World. Thank you so much. We're going to go to video before we hand back to my next colleague who will present to all of you. [Presentation]

Well, good morning, good afternoon and good evening, ladies and gentlemen, wherever you may be. Thanks for listening to our messages today. I'm Ted Harrison, EVP of Enterprise Sales. We focus on the largest commercial and public sector organizations in the world, and I'm excited today to tell you about our growth opportunity and how we're accelerating to the cloud. So let's dive straight in, shall we? Our key message is today. So we have over 1,000 enterprise salespeople supported by management, business development, presales, marketing, over 1,000 salespeople in 42 countries around the world, educating our customers in how they can turn our solutions into business value in a personalized manner for them. So we specialize in very large scale, global personalized business requirements to the largest organizations in the world. And you'll hear me talk about the Global 10000 that Mark talked about it earlier as well, the G10K. That is the largest organizations around the world by revenue size. And so how we cover those matters, and I'll be talking to you about how we've expanded our coverage of the G10K this year in comparison to last. And I'll also talk to you about our Summit program. So when you look at the very top of our customer segmentation, you'll find the largest OpenText customers and also our we're covering the largest supply chain organizations in the world. We do sell across both enterprise and the mid-market. We've got some exciting new solutions on our Software-as-a-Service and also on our business network side in the mid-market. And our partners cover all segments. They're our force multiplier across a very large set of opportunity targets. We've got significant growth, and I'm happy to talk to you today about our growth and our acceleration to the cloud and the opportunity ahead. So first, let me tell you a bit more about our go-to-market. You saw this slide earlier on in the presentation, the keynotes from Mark. My group and James' group, actually, who will present shortly after me concentrate in that green box at the top there. So that's the $56 billion at the top that's around the large and the mid-market there. You'll also see a presentation after James by Prentiss, and he's the remaining $36 billion there in the SMB and C. So back up to the top, and we'll tell you about our Summit program, which is coverage of the top OpenText accounts by size to OpenText and also about our top 50 supply chain. That's by market analysis. And we'll go into that a little bit later on around those organizations around the world who have the largest and most supply -- complex supply chains who trust OpenText. Now the bulk of my sales force is around G10K in that kind of middle segment there. And I'll give you an update in 2 slides time, actually, on how we've expanded our coverage also on the G10K, the top 10,000 organizations by revenue across the world. We've got great growth vectors going on, which accelerate us to the cloud. And we've got a migration of our installed base from Release 16 into our Cloud Editions, which we'll discuss. We're also migrating not only our own installed base, but happily our competitors installed bases as well, as they move to a more modernized cloud platform with the innovation and investment we've put in OpenText. And you'll also see we're making more inroads into the mid-market through our partners, but also direct with new offerings, in particular, our business networks offering for the mid-market. And we're also working with our partners to have them build IP on top of our platform using our API and our Developer Cloud. All right. So let's give you that update. I promised you on our progress, at the top of this with our G10K segmentation. So first of all, just to drill down into the scope of my organization a little better. The blue countries which are highlighted on this map, those are the ones covered by my enterprise group. So it's predominantly North America and Europe. And then the gray countries here, you'll see presented by my colleague, James McGourlay, on international sales, our EVP of International Sales, who'll present immediately after myself. But to give you an update across the whole of our target market of Global 10000. Since I last talked to you last year, we have expanded our coverage. We've gone from 5,800 to 6,600 of those 10,000 accounts, and we're well on track to reach full coverage by the end of calendar year '23, which for us is around 80% plus of those 10,000 accounts because we will by choice not cover certain accounts or certain countries as per our strategy. So good progress on our expansion and our coverage with high-touch AEs translating our solutions into business value for the top 10,000 commercial organizations in the world. And let's take a look at the top. When we focus on the top of our Summit program, we see some of those largest organizations in the world. As you can see, the world's leading customers trust OpenText. And I want to update you today on our progress. We're now the top choice for those largest customers in the world. You can see it laid out on this slide here, just taking the top 10 across almost all industries. We're at a strategic point, ladies and gentlemen, now, where we are in these largest accounts and we have the right level of coverage for these accounts, and we're helping them to accelerate their information-led digital transformations. We have the scale, the expertise, the breadth of our cloud solutions to provide the highest possible value for the largest customers and organizations in the world. So whether it be, our examples we see on the bottom here, Merck, for example, they're delivering innovation that extends and improves lives using OpenText as their comprehensive cross-company international information backbone. Citi, providing flawless customer experience. L'Oreal, as we heard earlier from both Muhi and Mark quality, safety and efficacy delivered across the world in a massive global organization with the help of OpenText. Google delivering a flawless customer experience, partner experience and employee experience with our technology. Volkswagen, as we heard earlier, they are going through radical changes in organization around electrification and sustainability and they chose to simplify and choose just a few strategic partners across their IT landscape and OpenText was a major strategic choice for them. And AT&T, AT&T run our technology in their customer call centers, and they also offer our communication technology with our own offerings bundle to their own customers. Great examples here. When we focus on the top great things happen. We are the only company capable of delivering at this enormously high scale for each one of these customers across an enormously broad customer set at the top of the market where their requirements are more often their not mission-critical, highly personalized business value solutions with a globally diverse user communities and a highly secure and compliant cloud. The choice has to be OpenText. And further evidence of that is how prolific we are when it becomes to the largest supply chain customers in the world. By market definition, the 50 largest most complex supply chains on earth, we have over 80% of them, we're proud to call our customer. When we focus on the top 50 supply chains like this, you'll see each one of these tick marks in the top 50 as defined by market analysis, each one of these tech marks is a customer of our business networks, specifically. And it's very unlikely actually that you'll get through today, I think, without consuming or interacting with at least one item that's come through a supply chain managed on the OpenText Business Network. It's a huge part of the market. Some experts estimate that with these customers alone will be responsible for around 50% of all of the world's trading partners and the volume of transactions. I'm not sure where that figure is exactly. But the point here is it's not just about these companies, these 50 companies one by one, and it's about the vast network of suppliers and trading partners that each one of these companies represents and manages using a trading platform on our business network. So it's not just about the companies, but it's about the network, the ecosystem of trading partners. And we're focusing on not only adding to this list and bringing new customers, and I'll give you an example of that a little bit later on in the presentation, but also bringing new workloads from each one of these valued customers into the OpenText Cloud. Also, by the way, there's a footnote on the right-hand side, we also happen to be proud to count as customers the 5 supply chain masters as defined by Gartner, which this year are Apple, Unilever, P&G, Amazon and McDonald's, all 5 also trust workloads, workloads to the OpenText Cloud. So when you look at an opportunity set like this, where do we focus our growth programs in this opportunity? Well, reading along the top row, first of all, left to right, and you'll see a stat there. Already in our vast installed base, 33% of our installed base are current customers, trust some of their workloads to the OpenText Cloud. And so we're seeing a high degree of adoption there, but also a long way to go. We are happily also onboarding our competitors' workloads as they look for a modern platform, in particular, and we're seeing a lot of movement from IBM with FileNet and Sterling. We're moving our own installed base, as I mentioned, from Release 16 to our Cloud Editions. We've got strong momentum caused partly by this migration from our existing installed base. But also we're very happy to welcome new customers and new workloads from our existing customers into the OpenText Cloud. In fact, the majority of new customers we do welcome to OpenText today and we welcome straight on to our cloud, and they're adopting immediately in the OpenText Cloud rather than in our off-cloud solutions. In fact, 36% -- 37% of our cloud wins are to new OpenText customers. And so we're massively expanding our installed base when it comes to welcoming new customers into the cloud as well. And we have -- we're not there alone with our direct sales force, but I'll show you a little later on a slide on our partnerships. We're shoulder to shoulder with very large partnerships in the cloud, in particular, hyperscalers. And by that, we mean Microsoft, Amazon, Google and our traditional partners like SAP, Salesforce and our global system integrators. We are making inroads into new markets. James will tell you about our expansion in international markets. And also, we have new solutions in the mid-market, which we both sell. In particular, we launched this year a mid-market solution for our business network, which is gaining great traction. And we're on a constant 90-day innovation cycle. That's one of the best things about the accelerating in the cloud. We're bringing new conversations, new innovation, new ways to bring business value to our customers every 90 days in the cloud. So a little bit more about partners as our first multiplier. I mentioned some of these in the previous slide. In SAP, we have a decades-long history of being their top partner in license or off-cloud. And I'm very proud to say that, that partnership is flourished in the cloud. We're a big part of their RISE program. We're one of their top cloud customers and we stand shoulder to shoulder with SAP during this transition, and we're having great success together providing value to our mutual customers. Google is very exciting. You may have seen a press release just this last month about how we're going to market together in the public cloud, and we're also developing integrations in a joint go-to-market with Google Workspace. Microsoft, we support the many, many customers that we mutually have who have chosen Microsoft. We have excellent integration. We have Teams and Microsoft 365, which are providing value every day for our customers. You'll also hear a little later on from Prentiss about how we have a leading partnership with OpenText, which is very important to both of us in the SMB and C area. Okay, AWS is OpenText's largest cloud platform today, actually. So it's our largest platform for our own OpenText Cloud. And also, we are running a great innovation program, workshops with AWS to see where we can go-to-market together. And a little bit more about that when I get to my new partnerships box. And let's just cover Salesforce as well. We've had a long-standing partnership with Salesforce. We've had great success in our connector between Salesforce and our Content Services. Content Services forms a common regulated backbone for people looking at information, which may surface through Salesforce, SAP, Microsoft 365, Workday, SuccessFactors and others. But we're also making inroads now into new types of partnerships with Salesforce. We're having particular success with our digital experience solutions with Salesforce as a partner. Okay. And then on to new partnerships, just to say there are many more out there. And we're in talks with many of our existing partners about new ways to go-to-market and many new target partners out there as well. And we've developed throughout all of this experience a very useful innovation workshop technique for talking to our technology partners about where the overlap is in our customers' hunt for value and where the mutual benefit is where we can develop these go-to-markets. And I think that's the root of much of our success on the board that you see here. So partners remain a force multiplier us. And it just seems to be -- it's accelerating and getting to a higher scale and a faster innovation when we talk about the OpenText Cloud. So look, we're very proud of our wins. And I wanted to give you a couple of examples of our wins that directly relate to the messages that you've seen so far. All of these wins, ladies and gentlemen on this board, are from the last few months. They're all very recent. And just to give you an example of how we're winning in the OpenText Cloud. So first one, Close Bothers, a great example. This is a new customer to OpenText. And as I said, many of our new customers are coming directly into the OpenText Cloud, Close Brothers no exception. In fact, a good example. We're also happy to beat out an incumbent competitor there with IBM. So Close Brothers putting in our Content Cloud integrated with Salesforce.com and also our Experience Cloud in order to be able to provide their information backbone across the organization. Starbucks, Muhi already mentioned, a great example of a win with SAP here. So Starbucks have chosen to use our Content Services and integration with the SAP SuccessFactors and also their Qualtrics system to provide an excellent experience for their employees and also to have that information on their employees to give them a more productive and efficient environment and a safer environment as they're using this to support them with their pandemic measures. Exelon, another good example. Now this one is about migrating our existing installed base. So Exelon chose to take their existing Release 16 solution and move it into the OpenText Cloud. We support them with that migration. This is one of the largest energy companies in the U.S., in fact, in the world. They entrust their secure data to us. They just split off Constellation, they were also in the OpenText Cloud and we manage some very secure information for Exelon in both of those examples of cloud migration. Very happy to tell you about Kimbley-Clark as well. So yes, we beat IBM here as the headline says, but also when Kimberly-Clark chose us for their supply chain, we're very happy added an extra tick to the slide you saw earlier on our top 50 supply chain organizations in the world. So they're decommissioning a long-standing on-prem EDI solution with IBM and then moving it entirely to the business network in the OpenText Cloud. Two more before I do my closing remarks, I'd just like to highlight 2 great wins here when it comes to API services. Alcoa, they are consuming our Content Services API with core content. This is a departmental use case to manage their 10,000 documents, and they are now consuming our Content Services and it's a great example of a customer consuming services through our cloud-native APIs, as is F5. Also mentioned, I think, in earlier slides, we're very proud to have them as a customer. They've deepened their relationship with us, and they are consuming millions of transactions a day from our threat management system as part of their offering to our customers. So each one of these relates directly to the growth opportunities that I outlined in my earlier slide. And let me bring you back to those with my closing remarks, please. So thank you for listening to my messages. Our strategic priorities are clear. Our Summit program focuses on the very top of the pyramid I showed earlier on, and growing our largest OpenText customers and also focusing on the largest supply chain organizations worldwide. We continue to grow not only through our own direct sales force, but through our great partners, as you saw from the previous slide, and they are our force multiplier in the cloud. And we have 2 migrations taking place, we migrate our own installed base from Release 16 into the cloud -- into our Cloud Editions. And we're also migrating many of our customers who are taking their strategic decision to move to the cloud as an opportunity to modernize and move on to a high-scale, modernized cloud platform, which is very often OpenText. As I say, we will reach. We are on track to reach our full coverage of Global 10K customers by the end of calendar year '23. We've made great progress year-on-year since I last spoke to you. And finally, we have a sales team here that's highly motivated around growth, around accelerating to the cloud, and we're very pleased to continue to welcome new customers to our cloud and to open up new markets with the innovation we're showing in the cloud. So thank you once again, ladies and gentlemen. I'm now going to introduce you to our Enterprise Vice President for International Sales, Mr. James McGourlay, James?

Hi. Thank you for joining us today. And it's a great pleasure to be here presenting. As Ted mentioned, I am the Executive Vice President for International Sales. And my opportunity today is to walk you through just exactly what the international sales organization is here at OpenText. We formed the international sales organization at the start of this fiscal year in order to take advantage of the great growth opportunity that we see before us in the international sales markets. And today, I'm going to go through our market opportunity, give you an overview of how we see that opportunity and our focused approach to growth and how we're taking the basis of growth from OpenText that Ted and team have been able to deliver in North America and Europe and bring those things out to the international markets and actually execute with focus and bringing the connectivity of OpenText and bringing the strength of OpenText to these new markets or these expanding markets for us. So you can see here, we're following along on the Summit program, grow our top customers and our top supply chain accounts. When you look at our markets, you will see that we have a great supply chain opportunity to build on our business network expansion. We're going to continue to invest in our proven successful regions. We're going to migrate our 16 installed customers to our Cloud Editions. We're going to deepen and expand our partnerships, as Ted mentioned, and we're going to double our sales coverage over the next few years. So the opportunity and what an opportunity it is. When we look at our current position in the international sales team, we're currently delivering about 10% of the OpenText revenue. And we're doing that as we have been, but increasing rapidly from where we were as we go through this year. So we look at our TAM, $18.6 billion addressable target market for all of the products that we sell across our regions. One difference between the enterprise and the international sales region as we sell all products from the sales teams. So we have a focused effort on our customers. We're looking at -- of that TAM, we're looking at 10% market growth in our areas, 15% cloud growth. We're covering 5 of the 10 top GDPs, we got a 35% coverage of our G10K [ 3,800 ]. And we've got about 450 people in the organization, and it's a complete sales organization. We've got AEs, we've got SEs, obviously, but we have the supporting factors as well that bring up and build a full support -- sorry, sales organization such as our operations teams and our PMO and all those things to make sure that we're able to sell the products. Our long-term aspiration is to double our international sales revenue in the region. And we've got some solid plans to do that. Now when we look at breaking down where exactly our opportunity lies. As Ted walked through the map, and so we've broken down our international sales region here in a little more detail for you. You can see that we have APAC. We've got about 875 of our 10K accounts covered 54% and $5.7 billion TAM. When we look at APAC, we're covering a massive region in a very diverse region through ANZ, SEA, and we have dedicated teams in all of those regions focused on expansion. Looking at Japan, you can see the numbers there on the TAM. And Japan is our biggest market at the moment and also one of our biggest opportunities. When we look at the business network expansion opportunity that we have in Japan, the industrial and manufacturing base as well as the multinational corporations and the drive for software, the drive for organization, I'll talk a bit about -- more about that later. And then you can walk through the list, Greater China. One of the markets where we're continuing to expand and build out in and an opportunity that we see. Latin America, Latin America, looking back at our performance over the last few years, we found some great opportunities to expand and modernize our business network customers, move forward with our customer experience and Digital Experience software packages, and we'll talk a bit about that later. Africa and Middle East are just a phenomenal opportunity for us to help our customers in the region and help expand and move our sales teams and our products along. And then Central and Eastern Europe, Poland and Czech Republic predominantly at the moment. We're really investing in building out that market, and educating the customers, helping them understand what's required and then moving them forward. So GROW with OpenText opportunities. As I mentioned, we get 35% of our G10K coverage in the region. And we're looking at getting to full coverage by the end of calendar year '23. As Ted talked about focusing on that G10K is where we really see the biggest opportunity for OpenText, for our products, for our services. 21% of the 135 (sic) [ 13,500 ] international sales region OT are on our Cloud Editions. So we are seeing in many of our markets, we're seeing a faster push into the cloud, and we expect to see that number go up drastically over the next little while. Now if you look through, and as I said, we're following along in the proven methods that have -- for sales in North America and Europe. And then we've broken them down here, and you can see where they are. We're not going to go -- we're not going to reinvent the wheel far from the corporation. We're going out and we're taking what we know works. So our Summit program. Let's get into our top customers. Let's get into the auto manufacturers in Japan, where we currently are, and let's continue working through there and expanding with those customers and expanding our business network, expanding our software offerings and our cloud offerings. As we migrate our installed base, our 16 customers, to the Cloud Editions, right? We've got opportunities for working with our larger financial institutions in ANZ, pulling them forward on to our newest Digital Experience suites and moving onto our Cloud Editions at the same time. Business network expansion, we've done very well, obviously, in our business network worldwide. But we do believe we have an opportunity with the mid-market products that Ted mentioned to bring up some of the mid-market customers into the business network with us. And at the same time, looking at our larger customers, who are continuously modernizing their supply chains, help them digitize and modernize the supply chains. Deepened and expanded partnerships, SAP, our Global System Integrators and Google, all very important to us as they are across the world. We have a strong relationship with SAP in all of our regions. We're building on our Global System Integrators relationships. And working with Google, as I mentioned, the hyperscalers are -- I'm sorry, the hyperscalers are very important to us working with Google specifically in several of our key regions in order to deliver cloud solutions to our customers. And then growing our key regions. I've got a slide on this a little bit later. But talking about Japan, Asia Pacific and the Middle East. And then we're going to double our sales coverage over the next year. So customer success stories. Look, so I think you've seen customer success stories from Muhi, you've seen customer success stories from Ted. And I think the fact that we've got so many great customer success stories to talk about really does demonstrate the value that OpenText brings to our customers. And in this case, we're looking at bringing value to our customers across the globe. TIM, Telecom Italia Mobile in Brazil, right? Here's a customer who worked with us and working on -- using our digital experience suite as well as our Ex ECM suite to deliver electronic invoices and really facilitate a more improved business solution for their customers and massively improved experience. Agility is 1 of the leading constructors of warehousing and logistics systems in the Middle East and Africa and enhanced customer satisfaction, again, using our customer -- sorry, our digital experience and our Ex ECM product as well as AI and intelligent capture and helping them speed -- the speed and accelerate their business. JCB out of Japan accelerate -- using our business network and our Managed Services to accelerate their business partner onboarding. Help speed again the time to business. And they were looking for a scalable, secure and global B2B infrastructure that allowed them to bring in their trading partners from around the world. Transport New Zealand -- New Zealand Transport Agency, sorry, I got that backwards. Content management in the cloud, saving citizens more time and giving them an improved, again, the customer experience. And then MSI, it was on Muhi's slides as well. But MSIG, I think, is sorry, MSIG, again, a great example of cross products. They're using our customer experience or digital experience products, our Ex ECM products and all hosted in the OpenText Cloud. So a great example of where our customers are across the world, the types of products and services that they're using from OpenText and improving and speeding their business processes. As Ted talked about, our focus is on getting our customers -- our 16 customers under our cloud editions, using our partners as a force multiplier. We work with many of these customers and partners at the same time. And then obviously, competitive takeouts that are a key part of the way that we do business as well. So continued growth in key regions. So talking about the Middle East and Africa, you can see the TAM there, $1.7 billion TAM, 33% of the G10K coverage across that region. And really, as we look at the Middle East and Africa, we are looking at expanding our footprint moving from -- out of our base in the UAE and Qatar in the Middle East and South Africa in Africa, obviously. But as we continue to look and as we're moving into places, Saudi Arabia, for example, is a great market for us to continue to expand. We're working across this entire region, predominantly, our customers are in the Middle East, you would see, as you would expect, petrochemical, but engineering, infrastructure, government agencies, finances. So a great opportunity for us to build on the success that has been in place in the Middle East and Africa. Japan, as I said, it is our biggest market. We've got $4.5 billion TAM, 34% G10K coverage in the country. But it's about expanding our footprint in that customer base. It's about working with the large auto manufacturers, as I said. We're strong business network customers or partners in Japan with the auto manufacturers, for example, but it's about really going and making sure that we work with them to help them digitize their entire supply chain and utilize the -- our software products to really transform as they move forward with the electronic bookkeeping laws in Japan making sure that we've got the proper records management systems in place, making sure that they've got access to the world's leading content services that we can provide. So all of those things are really helping us to build our growth in Japan and really excited about what we have going on in Japan. In Asia Pacific, we've done quite well in Asia Pacific over the years, but we do think we can continue to expand. We know that we can continue to expand. We've got a few key markets in APAC where we will be investing significantly as we go forward in order to help build our success with our customers. ANZ, for example, I mentioned the movement to the cloud in ANN that our existing installed base of which we have a substantial installed base, moving back those customers into the cloud. We're working very closely with our partners. The hyperscale -- GCP, for example, the hyperscaler, to help make it easy and straightforward for our customers. Let's take the complexity away from running their business and deliver with ease and smoothness to their business as they offer improved customer experience. Southeast Asia, we have great opportunities to expand in Philippines, Thailand, Malaysia. We have a strong business, obviously, in the Philippines from a business perspective, from an OpenText business perspective, but we have an opportunity to build on our customer base in that country as well. And we see the same thing in Malaysia and Thailand. China, we're investing in China, continuing to build our team in China and have a good, strong foothold in the domestic marketplace. And obviously, India falls into APAC as well. So we do have a great growth opportunities and where we have a good strong footprint where we have been building and expanding over the last few years. Now we're doubling down. Now we're pulling in higher growth. So just to make the point again, make sure that we leave you with our strategic priorities. Our priorities are clear. deepen our footprint to accelerate growth in international markets, utilize OpenText global strength to enable growth and partners as a force multiplier. So we're taking what we have already done at OpenText. We're taking that to the international markets. We're investing, we're focusing. We're bringing the corporate strength of OpenText and we're looking to move forward. And as I said, our long-term aspiration is to double our international sales in the region over the -- very shortly. So thank you for your time today. I really appreciate the opportunity to speak to you. And I'm going to hand us off now to a 5-minute break, following which we'll have Paul Duggan and our International Renewals team. Thank you. [Break] [Presentation]

Hey, welcome back to Investor Day 2022. I'm Paul Duggan, Executive Vice President of Renewals. I'm thrilled to be here with you to talk about the Renewals organization and the important role we play in growth at OpenText. My key messages today are twofold: scaling the revenue engine and next altitude in the cloud. Scaling the revenue engine, it's always started with talent, and it does with us. We have a world-class team in a centralized, dedicated organization. We'll talk about proven value and how a renewal fundamentally comes down to several decision factors the cornerstone of which is trust. And finally, there are several areas that accelerate our scaling and how things like AI are helping shape and guide our segmentation and approach to the business. Then as we look to the future and all the growth that you heard Mark and my colleagues talk about so far today, we see a step function in Renewals to contribute to growth in new ways. So in the spirit of [ Kahu ], I stole this for Mark, and I'll throw another saying on this, we're going to take this thing to new heights and get into class alpha airspace where we can navigate in new directions and position a Renewals organization to further extend the grow with OpenText mission. So let's dive in. I thought I'd begin the discussion. You saw this slide earlier, but let's talk just quickly about the organization. And I'll give you a feeling of my kind of philosophy approach to the business as well. So $2.7 billion of annual recurring revenue across 125,000 renewal agreements. And the ARR growth is truly impressive, 318% growth over the past 10 years and ending Q2 at more than 80% of total revenue. We're entrusted with that revenue. The business is managed by 425 renewal professionals from around the world. I've been on the executive leadership team here at OpenText for 5 years. But while I recently transitioned to Renewals I've spent nearly 20 years running renewals organizations. And I've had the privilege of doing that at 3 of the world's fastest-growing and largest enterprise software companies. And let me tell you, we have a world-class team, and it's a differentiator for us. I think of it as the high octane fuel that runs this engine. We have several distinct teams responsible for our cloud renewals, off-cloud renewals and SMB renewals. But ultimately, this is one team, and we have one mission. And being a single team creates a pillar of strength within the organization. We can advocate for our customers in different ways, and we can see across the different functions that service and support our customers. So as you look ahead, I think that gives us an interesting platform to leverage in new ways to further extend value to our customers, interlocked with our colleagues to grow this business even more. Let me talk to you quickly about our OpenText culture. It centers on the outcome of our customers, respect and the development of the individual. We live by a set of core values and principles at OpenText. The first thing on that list is to be deserving of trust. As a trust is earned. It often takes years to build, but only seconds to break. And when you think about a renewal or any subscription for that matter, at the end of the day, it really comes down to an action, a decision. And that decision, we recognize is made by our customers, not by us. We believe the drivers influencing that decision are threefold: is the customer fully using our products or services, do we have a meaningful relationship with them and do they realize value from both. And that believe shapes our approach to the business. For example, we've adopted a customer management approach rather than a contract management one, and we're closely interlocked with the sales and services team around the customer. We also pride ourselves on showing up. We're often amongst the first calls the customer makes when they need help. We take that role very seriously. These are interactions that happen every day at OpenText. And every day, customers make that decision to renew. You see a few recent renewals on the slide here. Let's face it. These are great examples of customers where trust is everything. So financial services, health care, public sector and government trust is the vocabulary and foundational to everything they do. By the numbers OpenText customers are happy, our CSAT scores have never been higher, and our customers stay and expand. And to that last point, I'd say there's no better expression of trust than a relationship that grows. Needless to say, we live in unprecedented times. This chart shows 5 years, you just need to go back 24 hours with the headlines coming out of Eastern Europe. COVID certainly permeated everything in our lives for the past 2 years, but it's hardly the only global event impacting the customers we serve, and it won't be the last. Over the last few years, we've internally aligned on a single word to describe who we are and the collective mindset we have at OpenText. In 2020, we used the word resilient. Last year, it was courageous, and this year, unstoppable. And for Renewals, that word unstoppable really resonates for me. If you look at our renewal rates, they've been stable and unwavering despite so much disruption and change. And let's be clear, this only comes from delivering proven and sustained value in the updates and innovation we make to our products. It also comes from operational excellence. So things like our systems and airtight management of our contract base, we're very disciplined with pricing, both at point of sale and upon renewal. We offer customers flexibility and choice with things like our extended support program, and we tightly manage our policies and controls. Now all of this is driven by a world-class leadership, truly the best I've worked with running a segmentation model with distinct roles that support our mission. So where do we go from here? You heard Mark and Ted and James and others talk about the path ahead to drive exceptional growth in the coming year. Let's shift gears to how Renewals plays a bigger role in those aspirations. We're calling our next altitude in the cloud. At its core for renewals, that completes the transition from a customer management approach -- or to a customer management approach and also deploys new programs with retention and protecting the base in mind. It puts an emphasis on our cross-functional engagement and connectivity and our stent is really driven by the 5 areas that you see on the slide here. We're going to drive transformational engagement, including the automation and centralization of our process. We're going to take a longer-range programmatic approach to retention. We're going to continue momentum that we have on upselling and built some new muscle on cross-selling, and we're going to continuously improve our business practices and insight. Now all of this is underpinned by a complete rethink we're doing in terms of onboarding and enablement, not just to upskill over the next few years, but also to build new channels of rapid deployment for enablement to support our sales and marketing functions. So together, we really see these things as a step function to organic growth as an extension of our selling teams and to position us well to support our customers on their journeys. So let's double click into a few areas, and we'll expand upon what that means. So I touched on this notion of completing the transition from a transactional contract-based approach to one that's based on consumption and expansion. Now these are 2 different motions and therefore, 2 different roles within the organization. On the one hand, you have a renewal representative, who is an expert at that end-to-end transaction is focused on retention and finds growth via upselling our support programs and pricing uplifts. By contrast, a customer manager is an expert on gauging usage and adoption is focused on expansion and finds growth via upselling capacity, products and services. Now both roles are important. They just have different orientations and therefore, require different skills, and require different deployment within a strategic segmentation model. Now today, we have an established customer management approach on our cloud renewals. The opportunity ahead for us is to do this within our off-cloud and SMB business as well, and we've illustrated that here on the right-hand side of the slide. So what's new? In F '22? This is kind of the first phase of building this out in those businesses, and we've launched a new off-cloud customer management team in our key accounts. And as you heard from the other presentations, this is really a high-touch zone for us. where relationships and understanding customers are of the utmost importance. In F '23, we're going to do 2 things. First, we're going to build out a self-service renewal portal, which we're working on now. And that will complete the formation of a digital renewal center, where we centralized the majority of our process and transactional events into 1 segmentation. Second, we'll use that milestone as an opportunity to expand our customer management coverage across the rest of the contract base. And we're going to use AI to deploy those resources in a way that emphasizes specific customer profiles of opportunity and risk. What does this all mean? It means we're going to double the capacity of our customer management function over the next few years. And that's important. It brings role parity across the teams, but it also uplifts the conversations that we're having with these customers, any actions that we can take to drive value within the account. It also allows us to do things like rebalance this team as things evolve and as we see the mix of AR change over time. But above all else, it goes back to where we started in terms of those decision factors, namely building value from a more deep and strategic relationship with our customers. We also see growth via retention and expansion. There's a lot of ways to do this. Here's a few that we're focused on now. First, in Q2 in December, actually, we launched a new program of long-range risk management. So when you're running a renewals business, one of the things you strive for is to look around corners and try to anticipate things that may cause risk to an account. If you see it early, you can influence outcome. In F '22, we combined the human insight we have within the Renewals team with our AI insights into 1 single dashboard in the context of a renewal and trended the account health over time. Now where we see specific opportunities in that, we attach an executive sponsor, either at the executive level or a senior leader within the organization, develop a plan and execute against that plan. Now the key to this program is not just the awareness and alignment that comes from that. Those are critically important, and we've raised the bar there. To me, there's a new capability that's created with this kind of program, namely to sustain the prioritization of an account, specifically when any kind of near-term risk has been resolved. We also drive growth from our support programs, things like our annual price adjustment and extended support programs. I have some first-hand knowledge of how we stack up in the software industry. And let me just say, we have some world-class upper quartile performance. And we're taking the learnings and rigor that we have in our off-cloud business, and we're fully deploying that in cloud this year. And in F '23, we will do the same for SMB. And finally, there is an expansion motion that we're perfecting on our cloud renewals. And that really comes from this unique ability to read all the telemetry and then proactively engage with a customer to get to more capacity and longer-term commitments. And that's a new mover for us. And I expect to see renewal rates increase here over the coming year as we refine our approach and add enablement across the teams. There's a few new frontiers for us in Renewals in upselling and cross-selling. I'll note that we have today a very successful program of lead pass from Renewals from the customer managers to the field sales organization, and we've generated an incredible amount of incremental cloud bookings in the first half of F '22 alone. In the year ahead, it's about creating new paths to growth. For example, we see the opportunity to sell our Managed Services and OnDemand Messaging to our B2B customers. Next month, we're, in fact, launching our new campaign around IAM and IoT to the business networks in collaboration with the sales team and enabling the customer managers to have those kinds of discussions at time of renewal. SMB, certainly Zix. These are all new areas for us to unpack and explore as extension of those selling motions as well. A great example of this kind of motion can be found in the retail industry. Retail -- look, let's face it. They've been navigating 20 years of digital transformation. And when the pandemic hit overnight things were shut down to physical stores. Retailers that weren't selling household necessities were in big trouble while retailers that had robust e-commerce sites fared much better. Nordstrom started their journey with OpenText 22 years ago as a VAN and catalog customer. And the customer management team has always been very close to this account and pivotal in helping the sales team grow the -- grow by cross-selling into a number of new areas, including our Managed Services, Compliance Link and other services. Much of this is happening over the past 4 years. More importantly, I think it's a good illustration of being a trusted partner. We're part of their team. We're side by side with Nordstrom's and there are nearly 5,000 trading partners and we provide a backbone for Nordstrom's to emerge stronger in a very tough retail environment. This is a highly repeatable plan. So it's an example of something I could name -- we have a dozen other retailers that where we had success with over the years, and it creates a template of sorts for us around value and a selling motion to add to an industry that really needs expertise from information management and business network experts. So it's at the top of our list. This is an exciting area for me. I think it's a place to watch for us, and I look forward to updating you on our progress the next time we speak. So there's a scene from the famous American football movie, "Any Given Sunday". And I won't try to replicate it here because I'll fail miserably, but Al Pacino makes this impassioned locker room speech about how sometimes we need to fight for every inch to make it across the line and how those inches are all around us. We have our own saying here at OpenText, and that is growth is granular. And perhaps nowhere is that more true than in Renewals. Now there's a number of areas where we can see incremental growth. We talked about API, but there's growth within better contracting standards. There's growth within quality of sale. There's growth within better systems. There's growth within understanding our installed base better by triangulating all of the data points we have around that customer. There's also a lot of great things happening in our AI. I know we've talked about this in the past. But really, over the past 6 months, it's pretty remarkable how precise this has become. And I think we're now at the point where we're moving -- we can move and take this capability beyond risk prediction into the area of shaping our go-to-market and segmentation for Renewals and how we strategize within those accounts. So we've got world-class robust plans in each of these areas. In fact, I just hired a dedicated leader, direct report to myself with the team just to manage these things. There's 100 to 200 basis points of renewal rate improvement right here on this slide, in addition to all the other things we've talked about. So it's a very exciting area for us and something that we are maniacal about. So let me summarize things by bringing us back up to the top. We're building the future of Renewals on bedrock at OpenText. We have a single dedicated team. We're trusted by our customers, and we have demonstrated proven value. We have momentum, upper quartile performance. And I think there are a number of ways to accelerate that, including things like AI. We see that step function in growth. It starts with the completion of automating the process and doubling the number of customer managers we have in our organization. We're going to double down on expansion, and from that, we'll create some new motions in our investment into the installed base and cross-selling with new path to growth. So let me close by saying, it's my privilege to work with our credible team and our incredible customers and truly together, we will be unstoppable. So that's it for me. We're going to do a short video, and then I'm going to hand over to my good friend and colleague, Prentiss Donohue. [Presentation]

Hi, everybody. Thanks for staying with us, and welcome to our conversation about the OpenText Security and Protection Cloud, where I'm going to be talking about where we really concentrate, which is in the SMB-C space. So today, SMB-C is incredibly important to OpenText. We've only been in this market for a little over 2 years. Already, we're approximately 20% of the company. And we've done that through an established and growing SMB community. You heard from Mark and you heard from Muhi and others about our focus via MSPs. We have 23,000 MSPs and growing. We're very proud of that relationship and interaction is we're one of the largest SMB channels in the marketplace. We're bigger than Datto. We're bigger than Pax8. And this is all relevant because security remains a high priority for small and medium businesses. Paul was just talking about retailers and these players in the marketplace who are now being affected by the malware phishing and bad actors who continue to get more sophisticated and continue to expand out into that SMB space. So -- and then I'm going to be talking today about a strategic relationship that we have with Microsoft that came in via our Zix acquisition that we're very excited about. So what this all means is you've heard today about how we're the leader in information management, you also need to know that we're a leader in information security. So what does this mean as far as how we go to market. And you've seen this slide before, the space we're talking about here is right there on about 40% of the addressable market, but this is -- really relates to our go-to-market approach. So an MSP, for those of you who may not be familiar as a managed service provider, it could be anywhere from 5 to 100 employees. and the MSPs really focus usually on a localized market. And then what they do is they can have expertise as it relates to certain segments, right? That could be small retailers, it could be automotive, it could be related to local health care, doctors and dentist office types of things. And we -- those are the groups that we play really closely with. In addition, the remote monitoring and management companies that work with those MSPs, embed our technologies, and that's an important part of our go-to-market motion. We team very closely with about 13 of the biggest RMMs in the marketplace. And of course, we still work with distributors and value-added resellers. Although we do see a trend where value-added resellers are transitioning into becoming more of that managed service provider type of profile. And we're doing this with our cloud orientation, cloud platforms and innovations, and we're doing it by expanding, getting that enablement into the partners, particularly those MSPs who need help and engagement and we're doing it with the digital zone. So how can we really automate many of these processes to make it easier for these partners to do business with us. And we're investing heavily in that space in order to do it and doing more of it with Microsoft, which I'm going to be talking about some more. So a few trends that are shaping our strategy here that may not surprise you, but they're highly relevant to us and we watch it closely. SMBs represent almost half of U.S. GDP and 2/3 of new jobs. There's high levels of turnover, and there's this a high need because of a labor skill shortage in order to make sure the SMBs get that IT security support through the MSPs. And we've also seen a big spike as far as malware sent via e-mail. There's over 300 billion e-mails sent globally daily, and it's growing. So some of you might be catching up on some of that right now as I'm talking. But it's a very common method of attack for malware and we're even starting to see malware disguised as ransomware, and we want to make sure that we can tackle that and then we also see Microsoft building out. They've really won that productivity in office suite space. So with all these things coming together, what we've been really excited about is Zix. And some of you may have seen or -- we closed on the Zix acquisition December 23, and we couldn't be more thrilled about that team and group. So as far as the why we're going into this space and why Zix and how is it working together, it's become incredibly compelling, first of all, from a technology perspective. We see that e-mail security component fitting right in with what Zix is bringing to our portfolio. This is coming into our cyber resilience portfolio and the level of interest not just from M365 customers, but from the rest of our base around how can we further secure their e-mail environment has been enormously important. In addition, Zix brings cloud-to-cloud backup, all kinds of data protection offerings, data loss prevention, archiving and really helps round out the portfolio. It's not just technology, though. The team has been very impressive to us. Our SVP of Americas Sales is for all of our SMB business came over from Zix as did our SVP of SMB Strategy. And so that entire team is an area that we're investing in. We're building up and it's offering all kinds of new avenues as we look at health care and financial services via that MSP market that they understand just as well as we do. And of the 5,600 active MSPs that we're talking about here, there was only about 800 that overlapped. So again, opened up a whole host of new white spaces for us to go cross-sell and upsell to. So as we look at the foundation for growth in what is an SMB powerhouse. This is clear evidence of how strong we are in this space and how we've grown in the last year as it relates to our MSPS that we've talked about. Our value-added resellers, and you heard Mark talk about over 800,000 businesses that are supported in this space. This is coming from our Carbonite, Webroot and BrightCloud components as well as Zix and the Zix AppRiver, CloudAlly teams that are coming together to round out our products and solutions. And our products and solutions, we put it under the cyber resilience umbrella, and this is a great differentiator for us for a couple of important reasons. Number 1 is we do the backup, train, protect and restore elements, whereas our competitors might only play in a piecemeal way. So you might see Sophos, for example, playing in the antivirus space or you might see a model where Veeam is doing some backup plays. We do it all. And that's important in our partner ecosystem for an important reason. If you're an MSP and you're trying to manage 50 vendor relationships, you need to consolidate that. And a lot of our MSPs are telling us that they just don't want to have to manage that many different vendors. So how can we, in our Security and Protection Cloud, consolidate that relationship and then automate it in order to make their lives easier and help us scale and grow with them in this growing marketplace. And we're doing this with over 2,000 experts in -- who wake up every day thinking about SMB across OpenText and a great engineering team on top of that. So SMB at scale. So as we look at the SMB presence in the past 2-plus years, we have the major partnerships with Microsoft watch this space. We're looking at our channel and there are fits and ways we could get some additional major partnerships in Europe to get into that SMB space via those MSPs and other partners. We have major product releases. So we're working with Muhi's team, we're very excited about enhanced endpoint protection efficacy. So this is constantly an evolving threat and target as we look at mobile, as we look at some of the geographic dispersions and risks that we're seeing. And we're beefing up even further our anti-ransomware protection because that threat has not diminished in the last couple of years, and we're also focused on enhancing our common consoles that are used by many of that, particularly in that prosumer space, but also moving beyond that into the digital zone that we're driving. And then I'm going to talk in a minute about what we call the new commerce experience. We're working closely with Microsoft to see and understand how we can build out the value-add to these MSPs as far as how they're engaging and buying as well as the SMBs in the marketplace. And we're doing all this with the Carbonite, Webroot, BrightCloud Zix, CloudAlly AppRiver then there's more. There's Hightail, there's MaleStore, all this value add that's leading into our product and people that give us great insight and advantage in this space. And we're building it on this enhanced security platform for MSPs to give them value and insight. Just to bring it to life for a minute, the threat intelligence model, this BrightCloud piece, I wanted to highlight because it's a huge advantage for us. So we see this is a sixth-generation machine learning with predictive AI models on top of it. These aren't typos. We really do scan and monitor over EUR 43 billion URLs. We catalog 1 billion domains. It's upwards of 37 million active mobile apps all to protect our base. And this basis creates that protection framework across our product lines. And we've just made our threat intelligence foundation stronger, as we look at that -- those malware, even malware disguising as ransomware threats, we get Zix now providing a blocking and quarantining model for over 6 billion e-mails in order to protect SMBs. And that's an enormous value for us and it even scales up into the enterprise. So Ted and his team are also using BrightCloud in order to secure large enterprises via our OEM model as well. One quick plug on the BrightCloud Threat Report side. we are publishing our '22 -- our 2022 report in about 3 weeks. So stay tuned because there's a lot of great insights and trend lines that we're able to see through BrightCloud that, again, guide our strategy, not just in terms of what we're seeing in the marketplace as far as addressable markets and trends, but what we're seeing on the technology side and where we need to make sure we're staying 1 step ahead of the bad actors. As we look at Microsoft, it has been mentioned a number of times today, but it's important. And it's important to us because Microsoft's not just dominance in the productivity suite arena, but also because of their go-to-market model. And to be a cloud solutions provider means that if you're an end user and you're spending less than $300,000 a year, Microsoft directs you to a CSP. And we are 1 of the top 5 CSPs in North America. We have been growing at a very rapid clip within Zix, and we're continuing to engage and expand this model and this relationship because we have over 88,000 M365 contracts. And I mentioned new commerce experience. This is an SMB-oriented program on the part of Microsoft where they're changing pricing models, they're changing rebate models. They're changing the contracting elements as it relates to the value of going month-to-month to year. And it actually takes quite a bit of handholding on our part in order to explain to those 88,000 immense arm, what the value is in transitioning, how we can help them transition and having a conversation and interaction with them that opens up a great cross-sell and upsell opportunity. So whether that's secure e-mail, if it's back up, if it's our endpoint solutions, if it's file share or security awareness training, remember, in the technology scenario, the weakest link can also be that human firewall. It actually usually is that human firewall that needs help. So we focus on security awareness training with this audience as well in addition to DNS. So we're very excited about the Microsoft relationship, and we see an opportunity as this model is changing, particularly in the course of the next 6 months to continue to add our cyber resilience portfolio offerings into those teams, and there's been great work on the part of our former Zix team as well as our legacy teams to pick up and have those conversations and engagements in order to identify the growth opportunity. So our strategic priorities we are clear on what we want to do and where we want to go here. It's an enormous addressable market. We are going to be the #1 SMB security provider. And so in that Security and Protection Cloud, we're going to be #1 here as we continue to expand, add value and play that consolidation and automation value-add with API. So the OpenText strategy is -- in doing that and going into this digital zone for our partners is enormously valuable, and that's going to make us even more appealing for new MSP partners as we bring them into the fold. We're going to look to accelerate Microsoft into the MSPs and support as a cloud solutions provider, and we're going to do it with our IP. And so it's a great go-to-market motion for us that's highly complementary and highly beneficial for the MSPs in the small, medium businesses that are in the marketplace. And we are really well positioned to do some more M&A. And coming up in a minute is going to be my friend and business partner, our EVP of Corporate Development; Doug Parker. But first we are going to go to video. Thank you. [Presentation]

Good afternoon. My name is Doug Parker. I'm the Executive Vice President of Corporate Development at OpenText. Good afternoon. I want to speak to you today about our corporate development approach, provide you more visibility to our M&A pipeline and the scale of the exciting opportunities before us and insight into our strategic priorities. As many of you know, strategic M&A has been an important part of our story at OpenText and has helped us establish and evolve our information management leadership. We see our M&A capabilities as a competitive advantage, and we foster and invest in the team, its activities and our corporate development ecosystem as a whole. We see our M&A trajectory continuing as we align our acquisition strategy with our broader growth and ARR strategic goals. And we have the financial strength and flexibility to deploy our M&A strategy at scale. M&A is an important competitive advantage in our total growth strategy. From our initial roots in content services, we've used M&A to expand our leadership in various key information management domains. From content services to the business networks added through acquisitions such as GXS. From the business networks to digital experience through acquisitions such as the AP assets -- HP assets. And from our digital experience into the security protection with acquisitions such as Carbonite. M&A has enabled us to establish new and growing presence in logical market adjacencies at scale in a disciplined and financially prudent way. And there's no lack of opportunity. In fact, I've never been more excited about the context of M&A possibilities for the company. Provided today some -- I'm going to provide today some visibility to our corporate development approach and pipeline. As you see on the slide, we use market segmentation to identify attractive TAMs. TAMs where our scale and operational excellence can add value synergies. And we're actively tracking over 1,000 companies, big, small, large, private and public. And we have clear visibility to literally billions in revenue opportunity across all our market domains and a clear line of sight for M&A to help double the company as our long-term aspiration mentioned by Mark. As a programmatic acquirer, we are focused on -- we are relentlessly focused on monitoring those opportunities to pick the assets that best meet our M&A playbook requirements. We are patient, and we are playing the long game. I'd like to talk next a little bit about our people. M&A is the ultimate team sport, and about our M&A life cycle, our processes and some of our principles. We have a large and seasoned dedicated M&A team. with centralized control over the entire M&A process. These are talented experts. They know the industry, they know our market segmentation. They know our go-to-market motion. They know our technologies and they focus on the preconditions for successful integration. And the company continues to execute in a tougher valuation market over the last few years. and pursue opportunities that make sense for us, such as 2 I'd like to highlight, Carbonite and Zix. The expansion of our market leadership into SMB was clearly accelerated by our execution of our M&A playbook. The Carbonite acquisition enabled us to acquire a new SMB platform in an attractive TAM at a reasonable price, allowing us to accelerate our cloud revenue, our ARR profile and our free cash flow while also providing critical mass in an exciting domain, Security and Protection. And we continue that process from Carbonite transaction with our recent acquisition of Zix. Again, we executed our playbook by expanding intelligently our SMB presence at a reasonable price for an asset with a sustainably organic growth profile, strong partnerships with Microsoft, as was mentioned by Prentiss, and a well-respected and knowledgeable employee base. So in summary, our corporate development strategic priorities are clear. We continue to build our relationships and stay very close to the 12,000 targets in our pipeline. We invest in and we develop our internal core capabilities in the area. We prioritize ARR with our targets, and we are an important enabler to double the company in the coming years. I want to thank you for your time, and it gives me great pleasure to introduce my colleague and our CFO, Madhu Ranganathan.

Yes. Hello, everyone. A big welcome and thank you for your time today. I recognize I'm standing between you and the Q&A. So I really appreciate the time. And I'm just very humbled to follow Mark and the leadership team. We are proud -- I'm proud to present the OpenText model. We have the right balance today that investors seek in terms of business models, with the knowns and unknowns in the world as we continue to have a strong connectivity between macro and micro data points. You just heard from all my colleagues a 30-year journey to be an information company in the cloud. And to date, we have done this with upper quartile margins that very few companies out there can actually compare in the technology space. OpenText has delivered proven profitability, cash flows and balance sheet strength with a high level of resilience in all markets and particularly in a challenging environment as we have today. The center of my purview as a CFO is operational excellence. And what you heard today is really leapfrogging operational excellence to drive total growth. So the key messages here, as you heard, and I'll just do a recap, the growth opportunities are significant and SMB at scale is really providing us an adjacency along with the enterprise. You'll hear from me more, we will invest in organizational and operational infrastructures. They have to be well oiled to drive growth. And we are building a strong model, and I'll talk more about this, the nonlinear headcount vis-a-vis growth of automation and higher productivity. And cloud infrastructure is a very key priority. You heard about 80% plus of our future investments towards cloud-based technologies and my team and I are right in partnership with Muhi and Mark to allow that to happen as we look into the future. The technology investments of the CIO office takes center stage. I'm very proud of it, and we'll certainly talk to you more about it. And unlocking value via have multiple expansion and expanding our investor footprint from value to value plus GARP growth at a reasonable price is of top priority. And when you really look at the outlook for our performance, it remains very strong. We will focus on annual recurring revenue and I'll more about the expansion and we have discrete opportunities in the adjusted EBITDA line as well as the free cash flow. The OpenText business system, Mark mentioned in his comments, is fantastic. I'll just make one comment here. The operating model profitability is at the top for a good reason. There are a few companies that have a consistent history of acquisitions as we do and throughout the acquisition and beyond, we have tight integration into our operating model profitability. And today, as I said, that experience is leapfrogging into growth synergies of the acquisition as we have created with Carbonite and Zix, are both growth-driven assets and integral part of our TAM. So grow with OpenText as you heard today. I'm just summarizing the great work our colleagues did and to emphasize that all that you heard today is giving you the details behind as many of you have asked the 2% to 4% organic growth and where do we go and what are the underlined opportunities. So here is my attempt to just summarize. Ultimate cloud and 4 ways to consume, it's very important. You heard about the summit programs, which is about a top customers and the top supply chain and deepening our relationship with the partnership and hyperscalers, SMB at scale. And Microsoft relationship bears its own plate for all that you heard from Prentiss Donohue, which includes scale and growth. It includes engagement and conversion as well. And cross-sell, upsell opportunities across the product portfolios and across the geographies. And migrate from Release 16 to the cloud is very important. Full global coverage we are aiming at 80% coverage per calendar 2023. And our long-term aspirations, of course, you heard that from Mark. And everything Paul Duggan says, I'm taking it into the financial model, and thank you again, Paul, and growth by renewal and expansion. So investing for growth. This is actually a very important slide. So I'm going to spend a couple of minutes on it. Today, we bring operational excellence and operating profitability with clarity and scale on our investments. So let me start with the top left, which is investing for innovation. And you heard from Mark and Muhi about the breadth and the depth of our products and solutions the past, present and the future. And let me tie that to the investment. While we have maintained around 12% of revenues, the dollars have significantly expanded from $274 million in fiscal '17 to over $400 million in our trailing 12-month December 2021, and we're maintaining 12% to 14% in fiscal '22. As we look ahead, as we mentioned, we're targeting 80%-plus of our investments in cloud-based technologies. This direction of investment will be the underpin for Ultimate Cloud and the growth in competitive opportunities that will become ours over time. On sales and marketing, very similarly, we've maintained about 18% over the last 6 years. On a trailing 12-month basis, $633 million as of December 2021 with 18% to 20% for fiscal '22. Yes, you will see investments accelerating in the second half, and that has been baked into our target operating model. Both Ted and James talked about the teams, the large teams and investment in channel and renewals. These are the investments that are planned. And what you will see in the future is sort of a fabric of automation and systematization, which I will talk more about. So a good segue to the top right, investing for scale. Scale comes through doing more with the same. It's a good old definition of productivity. And today, there is no definition of productivity without systemization or digitization. Organizationally, the CIO organization rolls into the CFO organization. And I can be so proud and grateful for the partnership that comes along with that. It allows us to evaluate, to design with our business leaders and orchestrate these projects with the right speed and outcomes. Our CIO team is a global team of about 500 professionals with a wide range of expertise. And our internal investment portfolio is broad and deep, with a specific lens in the next 1- to 2-year projects focused on growth and integration of our acquisition, contracts management and renewals automation, global technical support and of course, OpenText Digital Zone and many more. And needless to say, we are very focused on the outcomes, and we'd like to work backwards as you see on the chart. These projects have to be catalysts for organic growth. They have to produce efficiencies and renewals, billings and collection and of course, increase self-service so that Ted, James and Prentiss have more selling time in their teams to drive more growth. The chart below is how it all comes together. Our upper-quartile adjusted EBITDA is our framework. And driving total revenue growth for upper-quartile EBITDA, there are 2 areas: technology automation and higher productivity. Second is the trajectory of the nonlinear headcount growth. What do we mean by that? It means driving higher efficiencies, driving productivity by ruthless prioritization and a lens on growth while including DnA, we call it Digital and Automation, driving automation of all things transactions and transactable and executing on projects, as I mentioned earlier. Keep in mind, the model here is resilient. It's consistent, it's sustainable. While the underlying investments and the key projects may vary from time to time, this is what we believe makes OpenText highly differentiated in all environments and particularly what we continue to experience in the macro-wise. The proven durable business model. The key message here is one of predictability, of recurring revenue growth and expansion of margins. And once again, very few software companies will show a chart very similar to this, where there's growth of recurring revenue and expansion of margins. ARR is customer support revenues and cloud revenues. And during the period that we are showing in the chart here, our customer support revenues grew with our installed base from $657 million to $1.3 billion, while cloud revenues grew with enormous strength from 0 to about $1.4 billion. Growth in adjusted EBITDA is driven by what I referred to earlier, just a consistency in the operating model profitability. During the last few acquisitions, our focus has been ARR with a closer lens on cloud companies, as you heard, that contribute very significantly to ARR. On the far right, we are looking at 81% to 83% in our fiscal '22 target model for annual recurring revenue range. Adjusted EBITDA from 35.5% to 36.5% due to Zix and our investment in talent. I will speak about the path towards our long-term aspirations. Our fiscal '22 target model, and this is something we shared as part of our February earnings, and I'm just going to highlight a few points. Cloud revenues is expanding on the far right to the top, 42% to 44%, compared to fiscal '21 of 41.6%. And we've also provided 8% to 10% total cloud growth in fiscal '22 over '21. And you will see the resulting expansion in ARR, as I mentioned, from 81% in fiscal '21 to 81% to 83% in fiscal '22. The non-GAAP gross margin also benefits from adding to the mix cloud revenues in the nature of Carbonite and Zix acquisitions, where gross margin is in the mid -- I mean, is in the low 80s. I will point you to 65% to 67% for total cloud non-GAAP gross margin that allows an expansion to 75% to 77%. Operating expenses, you do see the expansion compared to fiscal '21 on R&D and sales and marketing. Keep in mind, the fiscal '22 target model reflects the Zix acquisition, which we are primarily focused on 2 lines of spend, R&D and sales and marketing. In aggregate, the operating spend is 42% to 44% compared to 39.5% for an adjusted EBITDA midpoint of 36%. This is a year of investment, no doubt. It's not unusual for OpenText. More recently, we'll take you back to the Carbonite acquisition, the quarter immediately following. Our adjusted EBITDA was 31.8%, and you saw the growth path from there. And we intend to maintain our time frame to get Zix acquisition to our target operating model in the next 12 to 18 months. And you've seen us do that before. So moving to the present, to the fiscal '24 aspirations. On the left is our target model. On the right is our aspiration. Is -- the middle part is the most important. How do we get there? And I do want to expand on that for you. Key operational drivers, ARR expansion. Adjusted EBITDA opportunities, 200 to 400 basis points, right, and free cash flow opportunities. As you look down the list there, there are actually several. We do have the renewal -- going from renewals to expansion, as Paul talked about. We have working capital drivers from -- I mean, and EBITDA drivers as well from a free cash flow standpoint. And I will say, higher automation in contract renewals is very key. Annual price adjustments, and you heard that from Paul, it's a key driver. And we've very consistent on that from an ARR perspective. And higher automation and global technical support, it directly adds to our gross margin. I also spoke about the Digital and Automation initiatives. On the working capital efficiency, I will say our acquisitions bring to us a very solid working capital framework. So we have a ladder to climb that is not too tall. And these are the bridges that will get us 200 to 400 basis points in EBITDA. And of course, I mean, as you know, the conversion for us from EBITDA to free cash flow is very strong. So free cash flow on the far right. I'll move to our long-term aspirations in a moment. I do want to spend a moment on cloud growth. It's sustainable and profitable. We've had strong enterprise cloud bookings in fiscal '21 and the first 6 months of fiscal '22 across many products and geographies. Cloud revenue will lead our total growth. Cloud growth and scale will drive our non-GAAP gross margin. And specific opportunities for margin improvements do exist in enterprise cloud. So in terms of numbers, as you see, the 130% growth in cloud revenue from fiscal '15 to our trailing 12 months. From a non-GAAP cloud gross margin perspective, the opportunities in enterprise cloud are important and 60.9% to 65.7% (sic) [ 65% to 67% ] in our target model. And as we go to the long-term aspirations, these are the opportunities that will drive us to fiscal '24. So let's pause on this slide, the path to ARR, very critical to our fiscal '24. So on cloud growth, again, we talked about this earlier, customer support, also from renewal to expansion. I'll spend a moment on M&A. The acquisition, as Doug Parker mentioned, will be ARR-focused. Our target is return on invested capital and free cash flow returns. And we do have proven success acquiring cloud companies, about 10, 9 of them, with Carbonite and Zix being the most recent ones. And we will have a lens on cloud as we look at acquisitions. So this is really our path from a driver perspective operationally to get from 81% to 83% to the 85%. So our medium-term aspirations, as Mark referred to, I won't spend too much time on it, just to sort of summarize, when you look back at the drivers in fiscal '23 that will get us to the medium-term aspirations of fiscal '24, I will make a comment that the initiative, the projects have been designed and many of them are in implementation. And that's really the path to get us to these medium-term aspirations as outlined here. All right. So our strategic priorities are very clear. It is about best-in-class operational support to accelerate organic growth as you look at from the -- on the far left. And I'll make a couple of comments here. We will maintain 12% to 14% R&D, 18% to 20% sales and marketing funded by expansion in gross margin. And that will be our path to 38% to 40% adjusted EBITDA, investing above 40% back into the business. The far right, expansion of financial envelope, I will remind, 80%-plus of our investments towards cloud-based technologies. And I'm going to speak to the 3 boxes together, technology investments and master modern work and the nonlinear growth of headcount. Look, human skills are critical, general and specialized skills. Our modern work footprint will need to be differentiated, driving higher productivity as we look ahead and combined with automation and all the digitalization initiatives and deployed smartly will offer us the maximum financial envelope. On acquisition and integration, I have mentioned this before, our lens on target companies will pull the future forward for us. And what do I mean by that? These target companies will bring growth, will bring ARR and will provide us assurance of an operating model profitability as well. We have a strong capital deployment strategy with 33% of trailing 12-month cash flows, free cash flows towards anti-dilutive buyback and dividends and a solid balance sheet to continue to drive acquisitions. Our debt structure is just optimal. Our last 1 year efforts leave us with excellent rates and extended maturities, exactly where we want to be in today's environment. The last box to the bottom right, it is about creating value. And it is about increasing our value. In our view, information management is an absolute space for investors and analysts to deeply engage. And OpenText is not just a business leader, we're a financial leader with proven strength. We do remain undervalued today, particularly given the very strong foundation of the future trajectory that my colleagues and myself just shared. So thank you for your time. Thanks to all the investors for your continued support. And working with our amazing Investor Relations team, Mark and I remain committed to share the OpenText story across Canada, U.S. and the global investor footprints. And with that, I wish you all plenty of wellness and peace. I will turn it over to our Senior Vice President, Harry Blount, of Investor Relations. But before that, a short video of one of our customers we are very privileged to have, Braille Works. And thank you again. [Presentation]

Welcome back. We're going to begin the Q&A session. Thank you for those who have sent in your questions through the application. We are going to start out a question first on the market size. So as it relates to the market, how much of the current TAM is serviceable at the moment with your current products and geographies? And is the plan to eventually build and acquire capabilities to address the entire full market. Mark?

Harry, thank you. I'm going to hand that question to Sandy Ono, our Chief Marketing Officer. Sandy, welcome.

Thank you, Mark. Well, the $92 billion serviceable market is actually the serviceable market in 20 subcategories that OpenText competes in today. The overall information management sector is actually about 30 different subcategories over $130 billion. But the key thing is, is what you heard from my colleagues today, that we're really expanding our ability to serve this market in 3 fronts. On the enterprise, the large and the mid-market, it's about breaking into the global 10-K and also through our strategic partnerships. We've now opened up 40% of the TAM through what Prentiss talked about in our SMB motion. And we're going to be deliberate and disciplined in our M&A in all the categories to what Doug talked about.

Thank you, Sandy. The next question is a capital allocation question. And the question is how do you decide between dividends and special -- including special dividends and share purchases for returning capital to shareholders?

Harry, thank you. And Harry, feel free to throw them out so you don't give it to me and I throw them out to the team. So...

Understood.

Yes, feel free to throw them out to the team. But I'll take this one and then hand to Madhu as well. So as stated, our capital return strategy is we look at 33%, 1/3, of our trailing 12-month cash flows and allocate that to dividends and buybacks. Now we used to be in a posture where 20% of FCF -- TTM FCF was allocated to dividend. And we thought that was a great foundation of predictable, high-value return to shareholders. And then recently, we put on top of that a buyback. And the minimal threshold of the buyback is to keep our share count constant and to look at it as anti-dilutive. So total -- in total, that's 1/3 of our capital we're going to return annually via dividends and buyback, 66% for corporate purposes and M&A. And that gives us all the strategic flexibility if we need -- that we need. If we step up to something even larger and more transformative, as we've talked about and chronicled, we won't hesitate to pull back the buyback, if we need to, to fund something even larger. But our dividend is really a foundation from which we built on.

Thank you, Mark.

Thank you, Harry.

The next question is with the overall market growing at 9% and our investments in sales and marketing and R&D and our increasing exposure to the faster-growing SMB, why do you think that our longer-term organic growth will be capped at 4%?

It's not. And so when we look at our current stated aspirations, we want to pick kind of the next execution, the next zone of performance for us. And the next zone in fiscal '24, which is only medium term, I mean fiscal '24 is roughly 8 -- 9.5 quarters away. So the next performance zone for us is up to 4% growth. Beyond that, and look, I'd like to see us be delivering consistently in that 2% to 4% organic growth. But we clearly have the market, we have the products, we have the executive team and we have the foundation to do even better longer term. But the next zone of performance for us is 2% to 4% organic growth. And clearly, we're -- as we accelerate into the cloud and into faster-growing markets, we have an opportunity to do more than that. So we're not capped at that. We're just setting our performance zone right now, and we'll continue to evaluate.

Fantastic. The next question is with -- when it comes to growth and all these new initiatives in the SMB market, will the majority of the growth over the short term and the medium term come from the SMB market? It seems very incremental to OpenText.

Well, Prentiss certainly think it will. But Ted and James have something else to say about that question. So let me hand it to Prentiss to talk a bit about SMB growth and then over to Ted and James to speak about enterprise growth.

Yes, sure. So the TAM that I outlined in my presentation really provides the kind of the best insight to the, first of all, the size of the market. Each one of those SMBs needs to be touched at an individual level. So that means that the importance of our growth is, in many ways, tied to the growth that we get within our partner community, which is why our focus in really connecting and making it easier to do business with is our top priority, so that we can put the accelerant on that Security and Protection Cloud.

Ted, James?

Yes, I go next. I'm happy to have Prentiss as my colleague and also a competitor in this, I would definitely like to outgrow him. And there's plenty of potential there. I hope it came through in my presentation. At the heart of this is the G10K expansion that I've been talking about. And if you think about it, we're often driven by the speed of the customer and their information-led digital transformations. So having an increased coverage of the G10K allows us to educate that customer through a series of workshops that we've built, IP to OpenText, where we could share customer stories with them, references, innovations. And that allows them to plan multiyear projects going forward. So it's about the speed of the customer. It's about educating them on the value we can bring to them, and it's about that coverage. The G10K coverage will lead to great growth for us over the next couple of years. James?

Yes. Thanks, Ted. So I'm going to just follow on, on what Ted said. I think it is about coverage. Our opportunities, as I talked about, is to move higher up from that 37% that we had on the slide and get more into our customer base and then build out some of our successes in the G10K. I think the second opportunity that we have is expanding in our markets, right? It's about taking advantage of the new markets. Take Saudi Arabia, for example. We've got a good footprint in Saudi Arabia, but we can double that market relatively quickly, for example. So we've got the G10K, we've got some regional markets that we're going to expand in. And I think bringing the best of what OpenText has done in North America and Europe to the international markets is going to lead to that natural expansion and that natural growth for the region.

So Harry, I'm going to mix metaphors here for a moment. And it's like having 5 thoroughbreds, and we're going to let them run. Prentiss in SMB, Ted in our Western enterprise markets, James in our international markets, Paul in renewals and as we accelerate into the cloud expansion and Kristina in our customer services group and our new offerings, like our new MDR offering as well. So we're going to let the thoroughbreds run. And we'll keep being the support supply lines to help them run as fast as they can.

Fantastic. The next one is a product question. If you look at our 4,500 developers, so the question is really what is the proportion between new products versus improving existing products?

Maybe to Muhi.

Thank you, Mark. Thank you, and good afternoon, everyone. So today, we are 50-50 approximately, give and take. And of course, in any engineering organization, resource will flex at times to accommodate additional features that we're adding into a release. But if you look in the new projects, we have on the Business Network Cloud, we have our middle-tier offering that Ted highlighted in his presentation and going to market with these to reach new market and grow the Business Network Cloud. On the Content Cloud, we have projects to go deeper integration into Google Workspace, deeper integration into Microsoft, where we replace SharePoint and become the foundation and the platform where Microsoft Office 365 stores content. If you looked at the Security and Protection Cloud, you heard Prentiss. We're supporting him by delivering MDR, EDR, XDR capability from monitoring detection responses but we're doing a lot more into the Webroot and Carbonite and Zix product line as well and bringing some of these products and integrating them together to deliver a better and more value to the customers. In the API, every 90 days, there is a new multiple APIs that get released and made available like intelligent capture, like BCTI and others. Back to you, Harry.

And if -- and Muhi, thank you so much. And if I could just add one piece to it. The -- as we accelerate our efforts into the cloud, accelerate our efforts in the cloud, the idea of what's old and what's new is a bit of a client server off-cloud concept. We are massively investing in cloud operations, cloud infrastructure, cloud delivery, speed. We announced a year ago, 1.5 years ago, that we're going to do releases every 90 days. That's a step-change function for a company of our scale. Oracle has taken our language in moving every 90 days, just as an example, but the investment in infrastructure, the investment in people, the investment in a mindset, the investment in the tools to go from thought to a serviceable feature in our clouds in 90 days, that's all new. So the investment in that infrastructure and then go faster, we're going to count as well as new investments because that platform, that internal cloud infrastructure to go from thought to just serviceable function live in our clouds in 90 days is all part of new.

Fantastic. The next question is with a doubling of the company, our long-term aspiration over the next 5 to 7 years, does that contemplate growth entirely within our existing clouds or new cloud potential?

I can say this real simply, we can double OpenText in our existing markets. We can double OpenText in our existing markets in the existing TAM. I won't say that we can triple OpenText in our current markets, but we just might be able to. But we can unequivocally double in the existing TAM and Sam, I am in this market.

Fantastic. So the next question is with relation to the growth in Cloud Editions, shifting the majority of our existing clients into cloud-based versions of OpenText, what are the key areas that we see that will drive that growth and that shift?

Ted, over to you. You're leading the charge from Release 16 to Cloud Edition. So maybe speak a little bit about the percent installed base that's moved -- I think we have about 1/3 moved right now, 2/3 to go -- and a bit about the drivers behind that.

Yes, thank you, Mark. Yes, we've -- as I said in one of my earlier slides, around 1/3 of our customers have already got workloads on the OpenText Cloud. And even with those customers, we're looking to increase the number of workloads that they move to the cloud. And so we're making good progress with 2/3 to go. And we're seeing -- I think, let's talk about 3 major kind of growth pushes when it comes to the move of our installed base to the cloud. First of all, on business network. You can't really get past the news headline without hearing about disrupted supply chains and the need for adaptive, agile supply chains with some plasticity. Our combination of business networks plus IoT is right in the middle of a major wave across multiple industries right now. And so we're seeing that drive a lot of people from on-prem systems into the business networks, cloud-native supply chain and treasury solutions. So business networks is a big part of that. Now you've got 2 more, which have been traditionally, in the previous decade, were traditionally off-cloud vectors for us, which are moving rapidly to the OpenText Cloud, and that's digital experience group and content services. On the digital experience group, we've seen over the last couple of years, it's accelerated consumers' willingness and requirement to transact more digitally and to interact more digitally. And so that's driving great growth into our digital experience cloud and for our installed base and for new customers from that point. And an example would be what Muhi said about PG&E, where they have to do massive bursts of high communications during, for example, wildfires. And so they need a very largely scalable cloud platform, which they can only get from OpenText. That moved them from our installed base into our cloud. And then finally, content services.

That's a really good example, Ted, because it's really close to home here. We're all here in Palo Alto, where PG&E is a great example. I'm sorry to jump in.

Not at all.

Because I'm also a customer.

Yes.

And where they went from off-cloud to -- they had an event where they needed to move to in the cloud and have complete reliability. And we -- and I know many of us here are on a PG&E site during fire season, right, and looking at evacuation zones and the movement of fires, which is the new normal for us out here in Northern California.

Yes. And you can go from...

That's OpenText technology powering that.

It absolutely is. And it will literally go from hundreds of people consuming that content to millions within a second, and that's the power of our platform. And then finally, just briefly, because I've taken up enough time, content services, big shift to our clouds for our installed base. And we're right in the middle of that. And our customer, we've always been in the business for content services of regulated and highly secure. But now we're providing those types of repositories and services across the customers who've chosen, as Mark said earlier, multi-cloud. So we're integrating between those clouds to provide one safe space for the one version of truth of content.

Thank you very much. I'm going to group the next 2 questions together. They're related. So the question is, within the growth, where are we seeing the -- which industries are we seeing the fastest growth from? And then related to that is how much of our growth is related to price versus expansion versus cross-sell?

Happy to take a little piece of that. I would say if we rank-order our industries, it's financial services, manufacturing, health care, CPG, retail, auto. I don't think I've missed any in the kind of the top tier for us for growth. What's the second part of the question?

It was related to the mix of what's driving between price expansion and cross-sell.

Yes. Pricing is always an interesting -- different in when you get to more medium and smaller-size companies. We're very disciplined, and we call it APA, annual price adjustment. And we have that across our new commercial frameworks as well as at the time of renewal. And as you heard from Paul earlier, we're very effective at capturing annual APA. In the enterprise space, it is not a good measure to look at inflation in APA. The two do not correlate. 30 years of experience and history, perhaps a little wisdom in the enterprise space, inflation and APA do not correlate in the enterprise space because you're competing on a individual pricing situation where you have to prove your value and it's the value of a project. So pricing is -- pricing increasing -- price increases are just not directly correlated to inflation, they're related to value. So medium-winded answer to say we're very disciplined at APA. We rolled out, I think, our latest APA in October, end of last year?

That's right.

Yes. It takes a bit to work through the system because of renewals. We will do an annual APA. We're getting our fair share of APA through the value we provide and the discipline.

And that's a great setup to the next question, Mark, which is with the APAs that we talked about today and the move to go from retention to expansion, what kind of time frame does it -- is it going to take? And does that apply to both off-cloud and cloud?

I guess just like a leadership team meeting. Paul?

Thanks for the question. It's a great question. Look, first and foremost, the motion is there. So we already have an established motion of, as I talked about, of lead pass. So -- and when you look at the functional roles of our team, there's that distinct customer management function. It's just operating at a different level. So it's less about that end-to-end transaction, and it's more about adoption and usage and that sort of thing. And so there's different levels of conversation and the different motions within that and different skill sets and different placement within the organization. So that's happening today. And what we -- as I talked about earlier, the opportunity for us is to now fully deploy that across all of our customers. We have that motion on the cloud side. It's kind of an established way of thinking already on the cloud side. And then for the remaining parts of the business, we're setting all of those things in place to allow us to double the capacity of our customer managers across our entire renewal base. So we've already started, got an established motion. F '22 kicked off kind of Phase 1 of that for the kind of accelerating the rest of that transformation. And in F '23, it's going to be where we double down. And so there's some gating factors in terms of some of these -- the digital renewal center building out and centralizing a lot of the function and getting to this place where we can put more energy and time into the right conversation. So stay tuned. It's going to make a big impact for us.

Thank you, Paul. And if I can amplify one point, thank you, Paul.

Sure.

Yes, if I can amplify one point, I think you see it with the team here, but it's great to have us all together in one place. We look forward to being with you next year together. There's so much -- the energy being together is just phenomenal. But you can see it here in the team and how we're organized. Paul is an independent yet choreographed organization with his peers. So we don't have renewals. Some companies take renewals and embed them into the field. And as companies have also moved from completely off-cloud to some cloud technologies, they have been able to leverage the expertise from off-cloud. That's not how we're organized. It's not how we manage. If you go back to Paul's prepared remarks, you see right up front in the first slide, one team. That is an independent team yet choreographed with his colleagues. So Paul's able and his organization, they're talking to a different buyer. It is a different motion, both at the time of renewal and for expansion. So we just have a different point of view of how to organize and roll out this motion. And as we accelerate into the cloud, it's all going to be about expansion. I just want to make that point because we're organized differently. We think differently here, and it just shows in upper-quartile results.

Absolutely. The next couple of questions are coming in on Microsoft. With the new program that Microsoft is rolling out for the SMB channel, what does it mean for us? What does it mean for the customers? Is this an opportunity? So just kind of an overarching question on Microsoft and the implications and opportunity for us.

Yes, maybe I'll do maybe a macro frame for the company, then hand it over to Prentiss. As I said in my introductory remarks and really looking back earnestly over the last 2 to 3 years at the incredible pace of the hyperscalers, I can't find a customer who has made a decision to go, "I'm only going one hyperscaler." I can't find a customer who has bet their company on one hyperscaler. It is a multi-cloud world, just like it was a multi-ERP world and just like it was a multi-database world. it is a multi-cloud world. And that puts us into an incredible position to be the connective tissue, to be the glue or to be the process orchestrator, the information orchestrator across all those clouds. So we are going to get close to Microsoft, Google, Amazon, the big enterprise players, SAP, ServiceNow, Salesforce, and we're going to leverage their unique strengths. And that puts a little more work on us. We -- bring it on, right? But we're going to leverage the best of every partner. As it relates to Microsoft, they've won the endpoint. And our strategy is cloud and edge differentiated, cloud and edge. No edge, no cloud. No cloud, no edge. They both -- they're like 2 rabbits tied together in the race. So with that, we love Microsoft. We are delighted to be really close to the winner at the endpoint, the edge. And Prentiss, over to you to talk more about the incredible motions we have going on with Microsoft right now.

Yes, sure. So it's a good question. And just to get a little more specific in the SMB and MSP realm, about 80% of the -- those 88,000 contracts that I mentioned earlier are month-to-month. So part of the interaction and discussion that takes place right now in the conversion exercise that Microsoft wants to put people into, that wants us to put people into this new commerce experience is requiring us to really have a careful sit-down with those MSPs and even the end users and speak about their annual plan. So it's already a high-level discussion in the sense that the IT spend that these SMBs are doing with Microsoft tends to be their biggest-ticket item. So we've already moved up the kind of importance level in the conversation. And now it's moving up again because either they're going to go with this NCE, this new commerce experience exercise, or they're going to choose to stay, but either way, we're going to be at the table with them as they review, analyze and decide which path they're going to be taking. Are they going to go to annual contracts or monthly, how are they going to handle the pricing changes and the rebates? And it provides an opportunity for us to continue to add more value in that cross-sell-type model. So we win either way, whether they go with NCE or that they choose to stay because we're at the table.

Fantastic. Thank you, Prentiss. Next question is about acquisitions and M&A. What's the environment looking like out there? Is it getting more or less competitive? Is there a changing mix in buyers?

I'll give you my half sentence and hand it to Doug. It's looking better every day. So Doug for the details.

Yes, absolutely getting -- it's looking better every day. I mean there's still a lot of money in the system, SPACs, financial buyers. But I think you're seeing some hesitancy in deploying some of that capital. I think the public market pressure is starting to influence private valuations. I think the high-flying 30%, 40% growers in niche markets are still highly valued. But there's definitely a rebalancing going on, Harry, and it's encouraging because it just plays to the strength of our playbook and our disciplined approach.

Very good. Thank you. The next question is about the macro environment. And what is our confidence as we think about things like inflation and Ukraine and many of the other macro factors that are buffeting the marketplace?

Yes, Harry, thank you. I'll take a little piece of that and then hand to Madhu as well. As you saw in Paul's presentation, it was very purposeful, the slide that Paul added. We've been through a series of cascading crises over the last 2.5 years. And as I said in my intro remarks, these forces either are ripping people apart or bringing them closer together. It's brought OpenText closer together, more stronger company today through COVID, through social injustice, through an environmental crisis, fires and now through Ukraine. So we're more focused, stronger company, growing. In relation to inflation, the best answer, first, is how we run our company. You heard us talk about our debt structures, and we purposely moved to fixed rates in our debt structures. The best way to attack inflation is to remove the variable cost that is inflating. And that's called digital automation, as we talked about. So we actually can help customers manage through this. So we're in a great position on how we run our company and the offerings that we can help to be more digital, be more automated, help companies repurpose, redirect their labor through stronger information-led automation. As it relates to Russia and Ukraine, after Crimea, we actually exited Ukraine. And after Documentum, we actually exited Russia. So it is de minimis to our business today, and we don't operate in either country. With that said, our energy right now is focused on helping our customers in Europe who are in those regions. And it's very real, and it's going to get worse in the coming weeks and month or two ahead. We pray for peace. But I suspect it's going to get worse. Our energy right now is helping our customers as they move supply chains, not unlike when they move supply chains during COVID. But our business is rock solid. It's the bedrock, and our renewals business grew through these crises since we're the platform. Madhu?

Thank you, Mark. As I shared in my prepared comments, the permutation of the known and the unknowns, we stay very, very close to it, right, the connectivity between the macros and what we can control. You'll continue to see OpenText be very preemptive, be very proactive about aspects such as balance sheet strength. And then what we do for our customers, while the secular tailwinds exist for all of our product and solutions for our customers and growth for our business, we want to bring those value proposition home. And that is where, I would say, bringing the CIO organization into Digital and Automation in all of the growth leaders and my colleagues around here is where my focus is going to be with the support of a large team. So you make the internal model continue to be resilient while there are many factors that are not within our control.

Fantastic. We have 2 more questions left. Mark, you've talked several quarters publicly about how excited you are about APIs and the API developer cloud as a way of consuming. And the question really is about what does that mean for us? What's really the big opportunity, and why you're so excited about it?

I'm very pleased with our culture. I'm going to start a little with kind of a macro point where we're not a culture where we think we know it all. And we're also not a culture of not invented here. We're learners. And I can say this for, and I'm very proud of our team. We may not be the smartest team, but we'll outcompete anyone when we go to school and we learn. And we love Twilio and what they've done. And my tip of the hat to firms like Twilio. And when we looked at our -- across the board in information management, from our Content Cloud, our Business Network Cloud, Experience Cloud, Security and Protection Cloud, we're like this is amazing functionality. And the only way to consume it shouldn't be through our applications. So we've spent on engineering to architect that we've turned everything into an API. So we've learned from Amazon. We've learned from Twilio. We've learned from ourselves. And everything we're doing is through the lens of an API, make it important enough, make it large enough, make it public, make it usable. We also -- when we acquired Carbonite, we acquired BrightCloud, which is -- it's called the BCTI API, out on Developers at opentext.com and it's embedded in the top telecommunications companies for threat intelligence. And we're expanding that now into financial service, so we learned through an acquisition as well. So this is yet another way to consume. I am very excited about when I look out 1 year, 3 years, 5 years from now, we want to be embedded in new style of applications. Digital GDP is all about frictionless. Developers and companies want to pick up a series of APIs, write a thin application on top of it, be multi-cloud and go with an app. And we're going to be right there for them, whether it be storing documents, turning documents into metadata, being able to go from a physical document to something digitized, be able to move a good, be able to transact in Brazil, to be able to do threat intelligence. These are all just APIs now. So that's why I'm very excited about it. It will add to growth. This is young, as you saw on our slides, but I'm absolutely convinced that it will add to future growth. We entered the business network market through acquisitions. We've entered SMB and security through acquisitions. We're going to enter the API market through our organic efforts and acquisitions.

And that is a fantastic setup for the very last question, which is about doubling the company. We've made now 9 cloud acquisitions. We have added Carbonite in the last few years. We've added Zix. And those -- does that signal a change or mix at all in terms of how we're going to double the company?

Well, I think you get 9 data point, it starts to draw a line or a curve. So I would say that there's definitely a line and pattern forming. So maybe a little cheek aside, we like -- as you saw in Madhu's and Doug's presentation, we love ARR. And ARR can come in many forms. We're not going to be bashful about looking at an off-cloud company if we think we can take their off-cloud company and benefit to our private cloud or we can see a path to bringing them to the public cloud. So I just want to be very clear. We won't be bashful looking at large maintenance installed bases. I think it's a mistake to say no to have very profitable way to consume in our markets, but we have to be convinced we can move that future into the cloud. We also have to make sure that whatever we acquire is congruent with our future architecture. And so that means more cloud-oriented technologies as well. So yes, I think the last 6 or 7 are probably indicative of the next 20.

Well, fantastic. Well, to all our audience, I'd like to turn it over to Mark for -- to wrap this up.

All right. Madhu, I'd like to give you the microphone first to a few words, and then I'll wrap up as well.

All right. Thank you, Mark. Thank you all for your time today. As I said in my comments, information management is an absolute space where investors and analysts should engage deeply and we're going to help you do that. And we're looking to expand the footprint around the globe. We remain undervalued, particularly given the strong foundation and the future trajectory you've heard, and look forward to engaging with all of you. Thank you.

Yes. Thank you, Madhu. I'll conclude with 3 things. Why invest in the company? And first is, is it a market you want to be in? And information management is absolutely a market we want to be in. Two, and in periods of high inflation, is inflation eroding your core competitiveness or your market share? Not at OpenText. And three, is there dislodgement to the upper end of market leaders? And yes, when I look at ourselves to Oracle, when I look at ourselves to Microsoft, I look at us to Salesforce. And these are our ambitions. Our ambitions are not in the past. Our ambitions are not a Citrix or a CA or Symantec or McAfee. Our ambitions are all forward-looking, towards Microsoft, towards VMware, towards Adobe, towards SAP, towards an Oracle of that scale. And when I look at the value creation that our team and our motion to create, that's the forward that we look at. So I love the market we're in. We're going to help companies through inflation and it doesn't erode our base. And I look at the opportunity to move forward to that aspirational space. And so we appreciate your interest in OpenText. We're here to work with you, to help you get to know us better and to help you be a shareholder. So thank you.