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© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Adobe Investor PresentationJune, 2017

© 2017 Adobe Systems Incorporated. All Rights Reserved.

Financial Disclaimer

Some of the information discussed in this presentation contains forward-looking statements that involve risk and uncertainty. Actual results may differ materially from those set forth in such statements. For a discussion of the risks and uncertainties, you should review Adobe’s SEC filings, including the annual report on Form 10-K for fiscal year 2016 and the quarterly reports on Form 10-Q filed by the company in 2017. In our presentation, we may discuss non-GAAP financial measures. The GAAP financial measures that correspond to such non-GAAP measures, as well as the reconciliation between the two, are available on our website at http://www.adobe.com/ADBE.

Adobe does not undertake an obligation to update forward-looking statements.

© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential. 3

CHANGING THE WORLD THROUGHDIGITAL EXPERIENCES

Adobe’s Vision



Adobe Strategy


Advancing State of the Art

for Content

Driving Digital Transformation

of Industries

Powering Experiences with

Intelligence


EXPERIENCES MATTERMORE THAN EVER



6

Adobe SenseiPowering experiences with intelligence

Massive volume of content and data assets at its coreUnified artificial intelligence/machine learning framework

Deep domain expertise in creative, documents and marketing


© 2017 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Adobe’s Cloud Platform

ADOBE SENSEIArtificial Intelligence/Machine Learning

Framework and Intelligent Services

CONTENT DATA

ADOBE.IO

Creative Cloud Document Cloud Experience Cloud



Cloud Native

Beyond Mobility

Intelligence Everywhere

Open Ecosystem


Key Market Trends

© 2017 Adobe Systems Incorporated. All Rights Reserved. © 2017 Adobe Systems Incorporated. All Rights Reserved.

The Platform DNA for Digital Experiences

Cloud Native: Content and Data at the core

Intelligence Everywhere: AI powered by Adobe Sensei

Open Ecosystem: From solutions to platform

Beyond Mobility: Touch is just the beginning


Digital Media

Adobe Creative Cloud Adobe Document Cloud


Customer Trends Fueling Digital Media Growth

Mobility BusinessAutomation


ContentExplosion


Who Are Our Customers?


Students Photo Enthusiasts

Knowledge Workers

CMOs & CIOs

Creative Professionals


Digital Media Business Momentum

Source: Adobe

$-

$0.5B

$1.0B

$1.5B

$2.0B

$2.5B

$3.0B

$3.5B

$4.0B

$4.5B

Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16

Document Cloud

Digital Media Annualized Recurring Revenue (“ARR”)

Creative Cloud

~$4.0B


Creative Cloud

Desktop Mobile

Cloud ServicesAssets & Collaboration

ADOBE SENSEI

MarketplaceCommunity


Creative Cloud

• Desktop apps, mobile apps and cloud-based services

• Subscription service with monthly pricing expands market opportunity

• Lower entry price point

• New customer acquisition

• Combats piracy

• ARPU growth potential through servicessuch as Adobe Stock

• Subscribers get frequent deliveryof new features and capabilities


Creative Cloud Product Momentum

• Creative Cloud for individuals• Creative Suite 6

• Creative Cloud Photography• Touch

• Adobe Stock• Creative Cloud for enterprise

w/ AEM integration

• CreativeSync

• Desktop subscription• Connected desktop & mobile• Connected community

201520142012 2013

• Sync & store• Community

• Creative Cloud for enterprise• Creative Cloud for teams


2016Adobe XD

Adobe Stock Contributor Site

Adobe Spark

TypekitMarketplace

AI Capabilities in Searchand Contributor Workflows

Adobe StockPremium Collection

Adobe StockOne-click workflow

Character Animator

VR capabilities

3D Content Creation

Adobe Portfolio

Project Nimbus Project Felix

Lightroom for Mobile 2.5

Team Projects

Content-Aware Crop in Photoshop

Face-Aware Liquifyin Photoshop

Match Fontin Photoshop

CCE Advancements

All Mobile apps now on Android

Creative Cloud Product Momentum


Creative Cloud Business Momentum

Source: Adobe, as of Q3 FY16; all Y/Y numbers based on FY16 Q1-Q3 comparison to FY15* Cumulative new subscriptions, excludes Enterprise and Acrobat Single App subscriptions

>35%New to

Creative Cloud*

~46%Y/Y subscription

growth outside the U.S.

~43%Creative Cloud Enterprise

seats licensed in FY16 with services

>8MBehancemembers

~35MAdobe IDs

created on mobile devices

Key Metrics


$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

FY2012 FY2013 FY2014 FY2015 FY2016

Mill

ions

Revenue ARR

Creative Business Momentum

Source: Adobe, November 2016

Revenue and ARR


Creative Business MomentumTrended Revenue Mix


Subscription

Perpetual & OEM

Services & Support

FY2012

Subscription

Perpetual & OEM

Services & Support

FY2016


Adobe Document Cloud

Desktop Mobile

ServicesPartnersCloud Services

Assets & Collaboration

ADOBE SENSEI


Adobe Document Cloud

• Desktop apps, mobile apps and cloud services deliver streamlined workflows and compelling document experiences that accelerate business transformation

• Leverages ubiquitous PDF format and ~1 billion Adobe Reader installed base on desktops and mobile devices

• Using Creative Cloud playbook and cloud strategy to reinvigorate growth

• Lower entry price point with subscriptions

• New customer acquisition

• Combats piracy

• GTM synergies

• Gradual transition to more recurring revenue


Adobe Document Cloud Product Momentum

• Free e-signatures in Adobe Reader desktop & mobile

• Mobile e-signature Salesforce integration

• Adobe Document Cloud• Adobe Acrobat DC• Adobe Document Cloud for

enterprise

201520142012 2013

• Workflow designer & advanced workflows

• Digital signatures• Adobe Sign Across Workday

Business Platform• Signature capture & sync

• Acrobat XI with Cloud Services


Adobe Document Cloud Product Momentum

20164 Global Data Centers

Open Digital Signatures

Integration with Marketing Cloud

Enterprise Deployment with Creative Cloud

Microsoft & Box Integrations

Adobe Sign on Salesforce Lightning

Adobe Sign for Workday Recruiting

Adobe Sign in Japan

Accessibility Enhancements

Workflow Designer

AdvancedWorkflows

Adobe SignMobile Dashboard

New Adobe Sign for iOS/Android

Modernized Commenting

Modernized Annotation

New “Compare Files”

Customized Signatures

On-The-Fly Document Correction

Recipient Groups

EnhancedScan to PDF


Adobe Document Cloud Business Momentum


$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

FY2012 FY2013 FY2014 FY2015 FY2016

Mill

ions

Revenue ARR

Revenue and ARR


Adobe Document Cloud Business MomentumTrended Revenue Mix


Subscription

Perpetual & OEM

Services & Support

FY2012Perpetual &

OEM

Services & Support

FY2016

Subscription


Adobe Document Cloud Business Momentum

Source: Adobe, as of Q3 FY16

~13%Y/Y Acrobat unit

growth*

>90%Acrobat units licensed

as subscriptions on Adobe.com

~90BPDFs opened per year in Acrobat &

Adobe Reader

>6xY/Y growth of Adobe

Sign agreements created on mobile devices

~31%Y/Y Document Cloud enterprise ARR growth

Note: All Y/Y numbers based on FY16 Q1-Q3 comparisons to FY15* Acrobat perpetual and subscription units licensed as Single App

Key Metrics


Digital Media Opportunity

MARKET EXPANSIONCORE VALUE

EXPANSION


Digital Media Total Addressable MarketAcross Creative Cloud and Document Cloud

• New creative jobs• New student and teacher penetration• SMB and enterprise• Conversion from piracy base • Knowledge worker expansion

• CS3-CS6 customer installed base• Enterprise across commercial and education• Includes Acrobat perpetual installed base

• Subscriptions: CCI, CCP, CCT, STE• Subscriptions: Acrobat units licensed through Creative Cloud• Enterprise seat capacity: CC across Commercial and Education• Current Adobe Stock and Typekit ARR• Current Acrobat subscriptions, ETLAs and Adobe Sign ARR

NEW INCREMENTAL OPPORTUNITY

MIGRATION OPPORTUNITY

EXISTING INSTALLED BASE

CORE


Digital Media Total Addressable Market

MARKET EXPANSION

PHOTOGRAPHERS

• Photo hobbyists expansion

• Photoshop Lightroom and Photoshop Elements customer base conversion

CONSUMERS

• New mobile and web-based solutions targeting broad consumer base


Digital Media Total Addressable Market

CREATIVE SERVICES• Marketplace for project-based work and talent

• Training content and more

STOCK

• Includes images, video, editorial, and premium content

VALUE EXPANSION

SIGN

• Electronic and digital signature services• Integration with enterprise systems and workflows


2019 Total Addressable Market

CREATIVE CLOUD TAM

$19.5B$10.0B $6.6B$2.9B

VALUE EXPANSION

MARKET EXPANSION

CORE




DOCUMENT CLOUD TAM

$4.5B$1.3B $3.2B

VALUE EXPANSION

CORE



Key Digital Media Takeaways

• Industry tailwinds with content explosion, mobility and business automation

• Significant growth opportunity• Creative Suite and Acrobat installed base migration• New user growth through market expansion• Value expansion via services

• Adobe Sensei, a framework and set of intelligent services, dramatically improves the design and delivery of digital experiences

TOTAL DIGITAL MEDIA TAM

~$24B



Adobe Experience Cloud

Significant Momentum

Explosive Market Opportunity

Market Leadership& Most Complete

Cloud Offering



A complete set of integrated, cloud-based solutions that enable marketers to gain deep customer insight, build personalized campaigns, and manage/deliver their content

• Data-driven marketing– organize and analyze large amounts of data to gain actionable marketing insight

• Mobile marketing – effectively make, manage, measure and monetize mobile apps

• Customer experiences – deliver personalized and relevant digital experiences across screens and devices

• Cross-channel marketing – deliver and measure campaigns that are consistent across all marketing channels

• Programmatic advertising – automate ad buying based on data



ADOBE MARKETING CLOUD

ADOBE ANALYTICS CLOUD

ADOBE ADVERTISING CLOUD

Adobe Sensei



Enables organizations to measure and manage marketing activities across owned, earned and paid media—ensuring the impact of social is properly attributed

Helps organizations dynamically test and present highly customized experiences to a digital property in order to drive higher conversion rates

Provides marketers the ability to plan, automate, orchestrate and measure personalizedmarketing communications across channels

Enables marketers to create, manage, and optimize customized online customer experiences to build brand, drive demand and extend reach in the digital world

Multiscreen TV platform that helps broadcasters, cable networks and service providers create and monetize engaging and personalized TV and film experiences

EXPERIENCE MANAGER

SOCIAL

CAMPAIGN

TARGET

PRIMETIME

Adobe Marketing CloudProvides an integrated set of industry-leading solutions to help marketers differentiate their brands and engage their customers, helping brands manage, personalize, optimize and orchestrate campaigns and customer journeys



Combines the power of actionable analytics and audience segmentation with value reporting and analysis, and connects it for data driven marketing

Data management platform that helps marketers build unique audience profiles to identify the most valuable segments and use them across any digital channelAUDIENCE MANAGER

ANALYTICS

Adobe Analytics CloudEnables businesses to move from insights to action in real time by uniquely integrating audiences as the core system of intelligence for the enterprise; makes data available across all Adobe clouds through the capture, aggregation, rationalization and understanding of vast amounts of disparate data and then translating that data into singular customer profiles



Enables marketers to simulate and quickly act on the best and most profitable options in their search marketing strategyMEDIA OPTIMIZER SEARCH

Provides advertisers a unified, cross-channel Demand-Side Platform to plan, execute, optimize, and measure ad campaigns from TV and mobile to display and socialMEDIA OPTIMIZER DSP

Dynamic Creative Optimization lets advertisers reach specific audiences with flexible ad creative that’s personalized in real time to drive user engagement, conversions, and integrated experiences

MEDIA OPTIMIZER DCO

Adobe Advertising CloudDelivers the industry’s first end-to-end platform for managing advertising across traditional TV and digital formats, and simplifies the delivery of video, display and search advertising across channels and screens; combines capabilities from Adobe Media Optimizer and Adobe’s acquisition of TubeMogul


CORE SERVICES

SOLUTIONS

People Places Assets Mobile Activation

Campaign Target PrimetimeExperienceManager

Social Analytics AudienceManager

Media OptimizerSearch

Adobe Marketing Cloud Adobe Analytics Cloud Adobe Advertising Cloud

ADOBE SENSEI

PLATFORM

CONTENT DATA



Media OptimizerDSP

Media OptimizerDCO


Adobe Experience Cloud Business Momentum


$500

$700

$900

$1,100

$1,300

$1,500

$1,700

FY2012 FY2013 FY2014 FY2015 FY2016

Mill

ions

Revenue



DATA PLATFORMLARGE DEAL MOMENTUM

SOLUTION ADOPTION

57%Y/Y increase in Annual

Subscription Value (“ASV”) contracts >$500K1

85%Y/Y growth in

multi-solution ASVcontracts >$500K4

44%of >$500K ASV

contracts involvemultiple solutions5 6

71 TrillionAnnual

customer datatransactions2

52%of Analyticstransactions

from mobile devices3

3.1Average solutionsper customer with

ARR >$500K6

Source: Adobe, as of Q3 FY161 Based on YTD thru Q3 FY FY16 ASV bookings 2 Transactions based on trailing 4 quarters as of Q3 FY163 % of Analytics server calls from mobile devices as of Q3 FY16

4 Based on YTD thru Q3 FY16 ASV bookings – growth in number of ASV deals >$500K with more than one solution 5 Based on YTD thru Q3 FY16 ASV bookings – % of deals >$500K with more than one solution6 Average number of solutions licensed by a customer with ARR >$500K

Key Metrics



TOP 100 ACCOUNTS

$4.4MAverage ARR of top customers2

Source: Adobe, as of Q3 FY161 Based on FY14 top 100 ARR customers2 Based on Q3 FY16 top 100 ARR customers

90%Of customers have

3+ solution products2

66%Of customers have

3+ solution products1

$2.75MAverage ARR of top customers1

2014

2016

Key Metrics


Adobe Experience Cloud Business MomentumAdobe Experience Cloud Trended Revenue Mix


Services & Support

Perpetual & OEM

FY2012 Revenue MixServices &

Support

Perpetual & OEM SubscriptionSubscription

FY2016 Revenue Mix



DIGITAL MARKETING TAM

$40B$11.1B$11.7B

PersonalizationCampaign, Primetime,

Target

ContentSites, Assets, Mobile,Forms, Communities

Data & Analytics Analytics, Audience

Manager, Social

Advertising Media Optimizer,

TubeMogul

$9.9B $7.3B



Key Digital Marketing Takeaways

• Industry tailwinds with content explosion, mobility and business automation

• Significant growth opportunity• Creative Suite and Acrobat installed base migration• New user growth through market expansion• Value expansion via services

• Adobe Sensei, a framework and set of intelligent services, dramatically improves the design and delivery of digital experiences

TOTAL DIGITAL MEDIA TAM

~$24B



Business MomentumRecurring Revenue


27%

44%

66%

74%

0%

20%

40%

60%

80%

100%

$3,000

$3,500

$4,000

$4,500

$5,000

$5,500

$6,000

FY2012 FY2013 FY2014 FY2015 FY2016

% o

f Rec

urrin

g Re

venu

e

Reve

nue

(Mill

ions

)

Adobe Revenue & % of Recurring Revenue

Revenue % of Recurring Revenue

>83%


Business MomentumDeferred Revenue & Unbilled Backlog

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

FY2012 FY2013 FY2014 FY2015 FY2016

Mill

ions

Deferred Revenue Unbilled Backlog



Business MomentumOperating Cash Flow


$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

$2,200

$2,400

FY2012 FY2013 FY2014 FY2015 FY2016

Mill

ions


Capital Structure

• Strong liquidity position

• $4.8B of cash and short-term investments

• $1.0B unutilized credit facility, remains available until 2020

• Conservative leverage approach

• $1.9B of public debt outstanding

• Rated A- by S&P

• Rated Baa1 by Moody's

• Excess domestic cash returned to stockholders through stock repurchase

Source: Adobe, exiting Q4 FY16


Digital Media Financial Summary

2019 MARKET OPPORTUNITY

Core Opportunity $11.3B

Market Expansion $2.9B

Value Expansion $9.8B

~$24BAddressable Market

• Continued momentum with strong ARR and revenue growth

• Expanding TAM driven by market trends and cloud strategy

• Three pillars of growth• Migration of installed base (~7M remaining Creative Suite base)• New customer expansion• New services driving higher ARPU

• Strong innovation roadmap

• P&L leverage evident in financial results and targets



Adobe Experience Cloud Financial Summary

2019 MARKET OPPORTUNITY

Personalization $9.9B

Content $11.7B

Data & Analytics $11.1B

Advertising $7.3B

~$40B Addressable Market

• Explosive “Experience Business” enterprise growth category

• Market leader with most integrated offering for customers

• Driving multi-solution engagements

• Platform provides differentiation and competitive advantage

• Continuing to invest for long-term growth



Capitalizing on the Opportunity

• Digital transformation represents large, expanding market opportunity • ~$64B TAM in 2019

• Adobe is a market leader and uniquely positioned

• Adobe Cloud Platform is the platform for digital experiences

• Strong execution against a compelling strategy

• Significant top-line and bottom-line growth with strong cash flow



Significant & Growing TAMof $64 Billion


Adobe’s Growth Story

Creating & Delivering Digital

Experiences

Global Customer & Partner

Momentum

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