interim results for the six months ended 31 october 2016€¦ · interim results for the six months...

Interim Results

For the Six Months Ended 31 October 2016

Kevin Loosemore, Mike Phillips,

Stephen Murdoch, Nils Brauckmann

14th December 2016

Safe Harbour Statement

• The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. Information in the following presentation relating to the price at which relevant investments have been bought or sold in the past or the yield on such investments cannot be relied upon as a guide to the future performance of such investments.

• This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Micro Focus International plc (the “Company”) or any company which is a subsidiary of the Company.

• The release, publication or distribution or this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions.

• Certain statements contained in this presentation constitute forward-looking statements. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company’s financial condition, business strategy, plans and objectives, are forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “anticipates”, “expects”, “intends”, “may”, “will”, or “should” or, in each case, their negative or other variat ions or comparable terminology. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. Such risks, uncertainties and other factors include, among others: the level of expenditure committed to development and deployment applications by organisations; the level of deployment-related turnover expected by the Company; the degree to which organisations adopt web-enabled services; the rate at which large organisations migrate applications from the mainframe environment; the continued use and necessity of the mainframe for business critical applications; the degree of competition faced by the Company; growth in the information technology services market; general economic and business conditions, particularly in the United States; changes in technology and competition; and the Company’s ability to attract and retain qualified personnel. These forward-looking statements speak only as at the date of this presentation. Except as required by the Financial Conduct Authority, or by law, the Company does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events, or otherwise.

2

Agenda

Group Overview

Micro Focus Operations

SUSE Operations

Financial Review

Group Summary

Questions and Answers

3

Revenue increased by 1.2% compared to Pro-Forma CCY

• Guidance remains for minus 2% to zero for the full year

Underlying Adjusted EBITDA growth of 6.2%

Disciplined M&A strategy with 2 completed acquisitions and 2

further transactions announced with HPE

Total Shareholder Return strategy continues

• Interim Dividend increased by 75.5% to 29.73 cents (2015: 16.94 cents)

4

Group Overview

HY17 Micro Focus

Portfolio Update

Stephen MurdochCEO

• Delivered financial commitments

• Execution of portfolio strategy on track

• Refocus of product level investments towards “customer driven innovation” beginning to bear fruit

• Serena integration and business plan on track

• GWAVA acquisition complete and integration underway

• Continued progress in simplifying the underlying business operations to drive efficiency

• Re-engineering of go to market organisation underway

• HPE engagement and resourcing on track

6

HY17: Continued Progress on the Strategy and Model

Micro Focus – P&L vs pro-forma CCY

7

Micro Focus Product Portfolio

Six months ended 31 October 2016

As reported

$m


Pro-forma CCY

$m

(Decline)/Growth

%

Segment revenue 537.3 557.3 (3.6%)

Directly managed costs (277.3) (311.0)

Allocation of centrally managed costs 12.7 13.0

Adjusted operating costs (264.6) (298.0) (11.2%)

Adjusted operating profit 272.7 259.3 5.2%

Depreciation of property, plant & equipment 4.7 5.1

Amortization of software intangibles 0.5 0.9

Adjusted EBITDA 277.9 265.3 4.7%

Foreign exchange credit (8.0) 0.1

Net capitalization of development costs (2.9) (6.4)

Underlying Adjusted EBITDA 267.0 259.0 3.1%

Underlying Adjusted EBITDA margin 49.7% 46.5% 6.9%


As reported


Pro-forma CCY

(Decline)/Growth

$m $m %

CDMS

Licence 52.4 40.2 30.3%

Maintenance 75.3 72.4 4.0%

Consultancy 5.5 4.1 34.1%

133.2 116.7 14.1%Host Connectivity

Licence 38.9 48.1 (19.1%)

Maintenance 52.6 54.1 (2.8%)

Consultancy 0.9 1.2 (25.0%)

92.4 103.4 (10.6%)Identity, Access & Security

Licence 19.8 20.1 (1.5%)

Maintenance 70.3 69.6 1.0%

Consultancy 10.2 11.7 (12.8%)

100.3 101.4 (1.1%)

Development & IT Operations Management Tools

Licence 24.6 25.9 (5.0%)

Maintenance 109.4 120.1 (8.9%)


141.3 154.2 (8.4%)Collaboration & Networking

Licence 11.2 12.3 (8.9%)

Maintenance 56.6 66.4 (14.8%)


70.1 81.6 (14.1%)Micro Focus Product Portfolio

Licence 146.9 146.6 0.2%

Maintenance 364.2 382.6 (4.8%)

Consultancy 26.2 28.1 (6.8%)

537.3 557.3 (3.6%)


Pro-forma Revenue at CCY

1 Unaudited

Micro Focus – Regional Revenue Performance

9



As reported

$m


Pro-forma CCY

$m

(Decline)/Growth

%

North America 299.8 309.7 (3.2%)

Licence 80.0 80.2 (0.2%)

Maintenance 205.8 216.7 (5.0%)

Consultancy 14.0 12.8 9.4%

International 187.7 197.7 (5.1%)

Licence 47.3 49.4 (4.3%)

Maintenance 129.5 135.8 (4.6%)

Consultancy 10.9 12.5 (12.8%)

Asia Pacific & Japan 49.8 49.9 (0.2%)

Licence 19.6 17.0 15.3%

Maintenance 28.9 30.1 (4.0%)


Total 537.3 557.3 (3.6%)

Licence 146.9 146.6 0.2%

Maintenance 364.2 382.6 (4.8%)

Consultancy 26.2 28.1 (6.8%)

Enablers: Clarity of direction & purpose underpinned by great people

LFR: EXECUTION: granular approach via 4 BOX model

MFR: STABILIZATION: improve trends through incremental improvements across the board

CFR: CONSISTENCY: underpin delivery of customer value

Efficiency & Enablement Identify & Close Integrate & Leverage

RemoveComplexity

Re-shape

Deliver FY17 Financial Plan

Organizational Model Systems & Application

Model

Simplified Platform for GrowthGo-to-Market Acquisitions

FY17 Imperatives: Deliver in 17 and Build for 18+

10

Simplify processes, improve underlying data quality, analytics and reporting

Deliver Great Products Execute portfolio model to deliver “customer driven innovation” strategy

Improving Profitability through Operational Efficiencies

11

470 470

4,1774,177

0

1,000

2,000

3,000

4,000

5,000

6,000

Total SUSE Micro Focus

Average Employees for FY14

776 776

4012

400 77

3535

0

1,000

2,000

3,000

4,000

5,000

6,000

Total SUSE Serena GWAVA MicroFocus

31 October 2016

• Net reduction in MF of 642 (15%)

• Net increase in SUSE of 306 (65%)

147 locations in November 2014 97 locations in November 2016

~ 120 Product Lines • 12-24 month release cadence (TAG)

• OEM dependencies in key products

~ 120 Product Lines • 6-12 month release cadence

• Customer driven innovation

• OEM dependencies removed

• Delivery of our financial plan

• Consistent execution of strategy and four phase plan within context of

combined business post completion of HPE

• Simplifying business operations and accelerating progress on

improving the effectiveness of Go-to-Market

• Highly focused development and product management to deliver

“customer driven innovation” and optimize the performance of each

sub-portfolio

12

FY17 Priorities

HY17 SUSE Portfolio Update

Nils BrauckmannCEO

14

HY17 – A Successful Period For SUSEThe SUSE growth charter: “Sustainable, Profitable Revenue Growth Above Market Rate”

All relevant KPIs showed growth

• Revenue of $147.4m with y/y growth of 23.3%

• Deferred revenue balance of $335.2m with y/y growth of 21.8%

• TCV of $154.0m with y/y growth of 20.3%

• ACV of $88.8m with y/y growth of 16.4%

Open source business with market leading profitability

• Underlying Adjusted EBITDA of $53.3m

• y/y increase of $10.8m (growth of 25.4%)

• Profit margin of 36.3% with y/y improvement of 1.0%

15

HY17 Progress and Expansion

• Expanded headcount across different business functions and

geographies

• Completed openATTIC acquisition

• Exchanged contracts on acquisition of OpenStack IaaS and Cloud

Foundry PaaS Talent and Technology Assets from HPE

• Extended SUSE’s presence and contribution in key open source

projects and relevant industry groups

16

SUSE Regional Revenue Performance

North America, International and Asia Pacific & Japan had successful 6 months with revenue growing at 17.9%,

29.2% and 20.7% respectively.

Regional Revenue Performance

Six months

ended

31 October

2016

As reported

Actual

Six months

ended

31 October 2015

CCY

Six months

ended

31 October 2016

CCY

Growth

$m $m %

North America 59.9 50.8 17.9%

International 70.0 54.2 29.2%

Asia Pacific & Japan 17.5 14.5 20.7%

Total 147.4 119.5 23.3%

17

SUSE Regional TCV and ACV Performance

• North America had solid performance of TCV growing by 0.9% and ACV

growing by 5.5%. Delayed renewal transactions, including substantial new

contract elements, now forecasted to close in Q3FY17.

• International had a very successful first half, with TCV growing by 39.6%

and ACV growing by 21.8%.

• APJ had a successful first half with TCV growing at 23.9% and ACV

growing by 33.6%. Leveraging global agreements in place with key

independent hardware vendors and cloud service providers is attributable

to some of the growth. Investment in SUSE dedicated and aligned field

sales teams in APJ region creates opportunity.

18

SUSE ACV by Route to Market

• Growth in Indirect and Global Service Partners routes of 11.5%, 32.9% respectively.

• Large enterprise customers, who traditionally procure direct, purchased through a preferred partner, who acted as

a fulfillment agent, is primary reason for the Direct route showing a decline.

• OEM (Embedded Systems) transactions tend to be large, custom, specialized and binary in nature, and thus year

on year fluctuations in ACV generated is expected and evens out over time

ACV contribution by route to market

Six months

ended

31 October

2016

As reported

Actual

Six months

ended

31 October

2015

CCY

Six months

ended

31 October

2016

CCY

(Decline)/Growth

$m $m %

Direct 5.6 7.6 (26.3)%

Indirect 43.5 39.0 11.5%

Global Service Partners 36.8 27.7 32.9%

OEM (Embedded Systems) 2.9 2.0 45.0%

Total 88.8 76.3 16.4%

19

Alliance and GSP Relationship Progress

• Strategic alliance with Fujitsu with mutual commitment of resources

for development, marketing and sales for hybrid cloud products,

mission-critical solutions, future container and

Micro OS technologies

• Expanded partnership with SaltStack to provide Enterprise IT

Automation at scale

• Partnership with Mirantis to provide Enterprise Linux support for

Mirantis’ pure play OpenStack Cloud offerings

20

FY17 Second Half Outlook“Sustainable, Profitable Revenue Growth Above Market Rate”

• Deliver on Revenue, TCV, ACV and Profit Growth Charter for FY17.

• Grow deferred revenue balance, to be recognized in FY18, as a

good foundation for ongoing growth.

• Seamless integration of openATTIC, OpenStack IaaS and Cloud

Foundry PaaS Talent and Technology assets from HPE into

SUSE business.

• Optimize strategic partnerships for the mutual benefit of both

parties and our customers.

Mike PhillipsCFO

Financial Review

Results at a Glance Six months ended

31 October 2016

$m

Six months ended

31 October 2015

$m

Change

Year ended

30 April 2016

$m

Total Revenue at Constant Currency 684.7 599.6 14.2% 1,241.1

- Licence 146.9 134.4 9.3% 304.8

- Maintenance 364.2 324.4 12.3% 642.6

- Subscriptions 144.9 117.1 23.7% 246.8

- Consultancy 28.7 23.7 21.1% 46.9

Total Reported Revenue 684.7 604.5 13.3% 1,245.0

NON GAAP MEASURES

Adjusted EBITDA

Constant Currency 332.5 271.7 22.4% 550.0

Reported 332.5 270.6 22.9% 546.8

Underlying Adjusted EBITDA


Reported 320.3 263.8 21.4% 532.5

STATUTORY MEASURES

Pre-tax profit


Reported 113.2 98.8 14.5% 195.4

Net debt 1,612.6 1,454.3 10.9% 1,078.0

Earnings per share (cents) Cents Cents Cents

Diluted 38.12 38.58 (1.2)% 71.61

Adjusted diluted 89.20 74.01 20.5% 146.70

Dividend per share (cents) 29.73 16.94 75.5% 66.68

On a pro-forma CCY basis to provide a better comparison of performance

• Total revenues of $684.7m (2015: pro-forma CCY $676.8m), an increase of 1.2%, exceeding management’s guidance

• Growth in SUSE subscription and consultancy revenues

• Offset by anticipated declines in Micro Focus revenues

• Adjusted EBITDA of $332.5m (2015: pro-forma CCY $308.3m), an increase of 7.8%

• Underlying Adjusted EBITDA of $320.3m (2015: pro-forma CCY $301.5m), an increase of 6.2%

Growth in Adjusted diluted earnings per share of 20.5% to 89.20 cents (2015: 74.01 cents)

Completion of the acquisition of Serena Software Inc. (“Serena”) took place on 2 May 2016

• Purchase price of $540.0m on a cash and debt free basis

• Funded by existing and extended revolving credit facility of $375m and a placing of 10.9m shares at a price of 1,455 pence raising

£158.2m ($225.7m) gross and £156.1m ($222.7m) net

• From the date of acquisition, 2 May 2016 to 31 October 2016, the acquisition contributed $72.6m to revenue and a contribution of

$40.0m to Adjusted EBITDA. There is no difference in results between 1 May and 2 May 2016

24

Key Highlights

Improved cash generation in the period

• Cash generated from operations was $201.9m (2015: $162.7m) representing 69.3% (2015: 62.6%) of Adjusted EBITDA

less exceptional costs. Full Year target remains 90% to 95% with weighting to Half 2 due to seasonal working capital

factors

• Net debt at 31 October 2016 increased in the period to $1,612.6m (30 April 2016: $1,078.0m). Following the completion of

the Serena acquisition completed on 2 May 2016 net-debt increased to $1,625.0m

• Free cash flow in the period of $111.0m (2015: $40.3m)

• Net debt to pro-forma Facility EBITDA at 2.4 times

25

Key Highlights (continued)

Cash Conversion

26

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

120%

130%

(150)

(100)

(50)

0

50

100

150

200

250

300

350

6m-Oct 14 6m-Apr 15 6m-Oct 15 6m-Apr 16 6m-Oct 16

$m

Provisions Movement (non Cash)

Changes in Working Capital (including cash movements on Provisions)

Net cash generated from operating activities before changes in working capital and provisions

Cash Conversion %

Changes in Working Capital

27

32

34

36

38

40

42

44

46

48

50

52

54

56

58

60

(160)

(140)

(120)

(100)

(80)

(60)

(40)

(20)

0

20

40

60

80

100

120

6m-Oct 14 6m-Apr 15 6m-Oct 15 6m-Apr 16 6m-Oct 16

Days S

ale

s O

uts

tan

din

g

Trade Debtors Deferred Income Provision (cash element) Creditors TAG Acq Costs Others DSO

$28.5m

Net Change in Working Capital

$m

$(19.5)m $(17.0)m $(106.4)m $(110.8)m

Cash Generated from OperationsSix months ended 31

October 2016

$’000

Six months ended 31

October 2015

$’000

Year ended 30 April 2016

$’000

Cash flows from operating activities

Profit after tax 90,617 87,538 162,972

Adjustments for:

Net interest 48,953 50,439 97,348

Taxation 22,589 11,297 32,424

Share of results of associates 1,127 1,129 2,190

Operating profit 163,286 150,403 294,934

Research and development tax credits (936) (936) (2,041)

Depreciation 5,712 5,770 11,419

Loss on disposal of property, plant and equipment 484 7 109

Amortization of intangibles 119,085 100,644 203,313

Share-based compensation 15,521 11,856 28,793

Exchange movements (9,270) 719 (2,915)

Provisions 18,788 2,237 12,985

Changes in working capital:

Inventories 30 44 28

Trade and other receivables 21,073 4,276 (49,175)

Payables and other liabilities (50,118) (17,310) 30,923

Provision utilization (18,581) (25,114) (55,639)

Deferred income (62,308) (69,879) (16,603)

Pension funding in excess of charge to operating profit (856) (22) (18)

Cash generated from operations 201,910 162,695 456,113

Consolidated Cash Flowand Net Debt Position Six months ended 31

October 2016

$’000

Six months ended 31

October 2015

$’000


$’000


Interest paid (42,879) (52,200) (91,807)

Bank loan costs (5,864) (753) (1,805)

Tax (paid)/received (18,183) (47,707) (79,282)

Net cash generated from operating activities 134,984 62,035 283,219

Cash flows from investing activities

Payments of intangible assets (17,571) (15,786) (34,488)

Purchase of property, plant and equipment (6,454) (5,917) (10,281)

Interest received 502 448 1,009

Payment for acquisition of subsidiaries (293,797) (9,960) (9,960)

Repayment of bank borrowings on acquisitions (316,650) - -

Net cash acquired with acquisitions 68,173 106 106

Net cash used in investing activities (565,797) (31,109) (53,614)

Cash flows from financing activities

Proceeds from issue of ordinary share capital 467 475 968

Proceeds from share placement - - 225,720

Costs associated with share placement - - (2,979)

Repayment of bank borrowings (126,375) (126,375) (157,750)

Net proceeds from bank borrowings 115,000 20,000 245,000

Dividends paid to owners (111,023) (70,015) (105,159)

Net cash (used in)/generated from financing activities (121,931) (175,915) 205,800

Effects of exchange rate changes 8,536 (4,769) (9,551)

Net (decrease)/increase in cash and cash equivalents (544,208) (149,758) 425,854

Cash and cash equivalents at beginning of period/year 667,178 241,324 241,324

Cash and cash equivalents at end of period/year 122,970 91,566 667,178

Debt outstanding at end of period (1,735,529) (1,545,872) (1,745,209)

Net debt at end of period (1,612,559) (1,454,306) (1,078,031)

Profitability by Portfolio

Six months ended 31 October 2015 – Pro-forma CCYMicro Focus

$mSUSE

$mTotal

$m

Segment revenue 557.3 119.5 676.8

Directly managed costs (311.0) (64.3) (375.3)

Allocation of centrally managed costs 13.0 (13.0) -

Total adjusted operating costs (298.0) (77.3) (375.3)

Adjusted operating profit 259.3 42.2 301.5

Depreciation of property, plant & equipment 5.1 0.8 5.9

Amortization of software intangibles 0.9 - 0.9

Adjusted EBITDA 265.3 43.0 308.3

Foreign exchange credit 0.1 (0.5) (0.4)

Net capitalization of development costs (6.4) - (6.4)

Underling Adjusted EBITDA 259.0 42.5 301.5

Six months ended 31 October 2016Micro Focus

$mSUSE

$mTotal

$m

Segment revenue 537.3 147.4 684.7

Directly managed costs (277.3) (81.2) (358.5)

Allocation of centrally managed costs 12.7 (12.7) -

Total adjusted operating costs (264.6) (93.9) (358.5)

Adjusted operating profit 272.7 53.5 326.2

Depreciation of property, plant & equipment 4.7 1.0 5.7

Amortization of software intangibles 0.5 0.1 0.6

Adjusted EBITDA 277.9 54.6 332.5

Foreign exchange credit (8.0) (1.3) (9.3)

Net capitalization of development costs (2.9) - (2.9)

Underling Adjusted EBITDA 267.0 53.3 320.3

Adjusted Operating Costs and Adjusted Operating Profit

31

Reported

Amortisation

of purchased

intangibles

Share Based

Compensation

Exceptional

items

Adjusted

Operating

Costs

Pro-forma

CCY

Amortisation

of purchased

intangibles

Share Based

Compensation

Exceptional

items

Adjusted

Operating

Costs

$m $m $m $m $m $m $m $m $m $m

Cost of goods sold 74.3 (1.3) 73.0 77.1 (0.9) 76.2

Selling and distribution 218.5 (69.4) (2.0) 147.1 210.6 (53.3) (3.9) 153.4

Research and development 135.5 (37.0) (2.2) 96.3 130.9 (37.6) (0.7) 92.6

Administrative expenses 93.1 (15.5) (35.6) 42.0 71.4 (1.0) (12.8) (4.5) 53.1

Total operating costs 521.4 (106.4) (15.5) (41.1) 358.4 490.0 (91.9) (12.8) (10.0) 375.3

Revenue 684.7 684.7 676.8 676.8

Cost of goods sold 10.9% 10.7% 11.4% 11.3%

Selling and distribution 31.9% 21.5% 31.1% 22.7%

Research and development 19.8% 14.1% 19.3% 13.7%

Administrative expenses 13.6% 6.1% 10.5% 7.8%

Operating Profit/ Adjusted

Operating Profit 163.3 326.3 186.8 301.5

Six months ended 31 October 2016 Pro-forma CCY - Six months ended 31 October 2015

Currency ImpactThe revenue and cost profiles of the main currencies are:

32

Average exchange rate movements from in H1 17 vs H2 16 and H1 17 vs H1 16:

In H1 17 average exchange rate for EUR:USD is stronger by 1.5% compared with H2 16 and 0.1% stronger compared to H1 16.

In H1 17 average exchange rate for GBP:USD is weaker by 7.9% compared with H2 16 and 13.3% weaker compared to H1 16.

In H1 17 average exchange rate for JPY:USD is stronger by 11.9% compared with H2 16 and 17.0% stronger compared to H1 16.

H1 FY17 H1 FY16 (Pro-forma) FY16 (Pro-forma)

Revenue Cost Revenue Cost Revenue Cost

USD 62.9% 50.4% 63.2% 53.7% 62.8% 53.4%

EUR 20.8% 19.2% 19.4% 17.8% 20.4% 18.4%

GBP 4.7% 13.0% 5.0% 13.0% 5.0% 12.8%

YEN 3.5% 1.8% 3.5% 1.5% 3.4% 1.6%

1.000000

1.055500

1.111000

1.166500

1.222000

1.277500

1.333000

1.388500

1.444000

H1 15 H2 15 H1 16 H2 16 H1 17

USD to EUR

1.3000

1.3673

1.4346

1.5019

1.5693

1.6366

1.7039

H1 15 H2 15 H1 16 H2 16 H1 17

USD to GBP

0.0080

0.0085

0.0090

0.0095

0.0100

H1 15 H2 15 H1 16 H2 16 H1 17

USD to JPY

FY16 CCY Revenue and Underlying Adjusted EBITDA

33

Revenue

$m

Costs

$m

Underlying Adjusted

EBITDA

$m

Micro Focus Group – Year Ended 30 April 2016 1,245.0 712.5 532.5

Serena – Year Ended 31 January 2016 162.3 81.4 80.9

Micro Focus – Pro-forma at Actual Exchange Rates 1,407.3 793.9 613.4

Restated Pro-forma CCY at H1 2017 Exchange Rates 1,401.6 786.2 615.4

Currency Impact (0.4)% 1.0% 0.3%

Group Pro-forma Revenue by Product Portfolios

at CCY

34

($m)

105.0 108.4 119.5 132.2 147.4

588.6631.4

557.3592.6 537.3

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

H1 15 H2 15 H1 16 H2 16 H1 17

SUSE Micro Focus

Revenue by Portfolio Group

1 Unaudited

Six months ended

31 October 2016

As reported

Actual

Six months ended

31 October 2015

Pro-forma

CCY

Growth/

(Decline)

Year ended

30 April 2016

Pro-forma

CCY

$m $m % $m


Licence 146.9 146.6 0.2% 335.0

Maintenance 364.2 382.6 (4.8%) 759.6

Consultancy 26.2 28.1 (6.8%) 55.3

537.3 557.3 (3.6%) 1,149.9

SUSE Product Portfolio

Licence - - - -

Maintenance - - - -

Subscription 144.9 117.1 23.7% 246.8

Consultancy 2.5 2.4 4.2% 4.9

147.4 119.5 23.3% 251.7

Total Revenue

Licence 146.9 146.6 0.2% 335.0

Maintenance 364.2 382.6 (4.8%) 759.6

Subscription 144.9 117.1 23.7% 246.8

Consultancy 28.7 30.5 (5.9%) 60.2

Revenue 684.7 676.8 1.2% 1,401.6

Exceptional Costs

36

Six months

ended

31 October 2016

(unaudited)

Six months

ended

31 October 2015

(unaudited)

Year

ended

30 April 2016

(audited)

Reported within Operating profit: $’000 $’000 $’000

Integration costs 13,432 8,394 23,634

Acquisition costs 1,468 531 531

Pre-acquisition costs 19,669 - 5,569

Property costs 2,521 1,073 5,964

Severance and legal costs 3,958 653 (4,845)

Royalty provision release - - (3,000)

41,048 10,651 27,853

Current estimate of up to $80m of exceptional costs will be incurred before 30 April 2017

and a further $60m in the period up to the completion of the HPE Software transaction.

Post completion exceptional costs have not yet been quantified.

31 October 2016$m

31 October 2015$m

30 April 2016$m

Non-current assets 4,301.7 3,785.0 3,681.3

Inventories 0.1 0.1 0.1

Trade and other receivables 277.9 215.2 268.2

Current tax receivables 3.4 - 18.0

Cash and cash equivalents 123.0 91.6 667.2

Assets classified as held for sale 0.9 0.9 0.9

Total assets 4,707.0 4,092.8 4,635.7

Liabilities

Current liabilities

Trade and other payables 151.2 137.0 188.1

Borrowings 294.2 50.6 275.3

Provisions 15.4 27.8 10.5

Current tax liabilities 29.6 27.5 22.4

Deferred income 582.4 537.3 565.5

Non-current liabilities

Deferred income 204.4 171.4 196.5

Borrowings 1,441.3 1,495.3 1,470.0

Retirement benefit obligations 34.6 26.7 31.7

Long-term provisions 11.7 16.6 14.3

Other non-current liabilities 11.0 4.0 3.7

Deferred tax liabilities 349.5 286.5 264.0

Total liabilities 3,125.3 2,780.7 3,042.0

Net assets 1,581.7 1,312.1 1,593.7

Summary Balance Sheet

Taxation

38

Six months ended31 October 2016

$mETR

Six months ended31 October 2015

$mETR

Profit before tax (PBT) 113.2 98.8

Share based compensation 15.5 11.9

Amortization of purchased intangibles 106.4 91.0

Exceptional costs 41.0 10.6

Adjusted PBT 276.2 212.3

Tax (charge) / credit as reported 22.6 20.0% 11.3 11.4%

Tax on adjusted items 41.5 33.3

Adjusted tax charge 64.1 23.2% 44.6 21.0%

Reported effective tax rate (“ETR”) in the period is 20.0% (2015: 11.4%)

• Increase due to high proportion of disallowable exceptional costs in the current year

relating to HPE Software transaction

Adjusted ETR in the period is 23.2% (2015: 21.0%) in line with guidance range

of 23% to 27%

• Increase relates to intra-group transfer pricing changes to manage risk arising from

the OECD’s Base Erosion and Profit Shifting (“BEPS”) initiative

Cash tax payments in period were $18.2m (2016:$47.7m)

• Overpayments in the US in prior period have reduced payments required in

current year

39

Taxation

Kevin Loosemore

Group Summary

Are acquisitions delivering?

HPE Transaction

Strategy

Family Tree

Outlook

41

Group Summary

Are acquisitions delivering?The simple answer is YES!

Micro Focus EBITDA evolution ($mm)

Note: Does not include acquisitions smaller than $10M: Authasas (’15), Openfusion (’13), Soforte (’13), Relativity (’09) and Liant (’08).

Values for Borland, NetManage, Acucorp and Accurev are operating profit, not EBITDA.

Source: Micro Focus and other companies annual reports, Bain Analysis.

Presentation to HPE Board directors August 2016

39 3 (2) 19 (11) 8 (2)

313

166 532

80 612

'06 EBITDA Acucorp ('07) NetManage('08)

Compuware('09)

Borland ('09) Orbix assetsfrom

Progresss SW('12)

Accurev ('13) TAG ('14) Opimprovement

'16 EBITDA Serena ('16) '16 EBITDA(incl Serena)

~34% of ~$490M total EBITDA

growth driven by real net

operational improvement

Serena

acquisition

closed end of

FY16

124 35678

Net operational improvement accounts for ~34% of Micro Focus’s EBITDA growth over last 10 years

• A transaction that makes strategic and financial sense,

enabling innovation for customers, opportunities for

employees and returns for shareholders

• $600m EBITDA improvement opportunity to take group

to approximately $2bn EBITDA in medium term

• HPE Software year end results in line with our

expectation

• Spin off and merger plans running to schedule

• HPE shareholders are engaged to understand the

Micro Focus model

• Encouraging strength of management across the

combined business43

HPE Transaction

Transaction Timetable

HPE FY results Nov

Micro Focus HY results Dec

HPE Q1 results Feb

First submission of Circular Feb

First submission of prospectus Apr

1st SEC filing May

Approval of Circular May

HPE HY results May

Shareholder meeting May

Micro Focus FY results Jul

Publication of prospectus Jul

Approval of SEC documentation Jul

Completion / admission Q3’17

Key dates

A phased approach to delivery and setting expectations

Phase I: Assessment

• Deliver plans for FY17

• Detailed review of combined

businesses

• Invigorate Product

ManagementAc

tio

ns

Phase II: IntegrationA

cti

on

s

• Standardise systems

• Rationalise Properties

• Rationalise Legal entities

• New Go to Market (GTM)

model

• Maintain/improve cash

conversion

• Rationalise underperforming

elements

• New market initiatives

Phase III: Stabilisation

• Stabilise top line

• Improve GTM productivity

• Growth from new areas

• Improved profitability

• Standardise systems

Ac

tio

ns

Phase IV: Growth

• Top line growth

• Click and repeat!

Ac

tio

ns

FY17 FY18 FY19 FY20

45

Combined Business Overview

46

Micro Focus HPE Software Pro forma

Ge

og

rap

hy

Typ

eB

us

ine

ss

`

72% recurring 61% recurring 64% recurring

Americas55%

APAC and Japan33%

EMEA12%

Maintenance52%

Subscription9%

Licence26%

Consulting13%

IT Management

61%ESP18%

IM&G16%

Big Data5%

Maintenance52%

Subscription20%

Licence24%

Consultancy4%

Americas56%

APAC9%

EMEA35%

IT Management49%

ESP 12%

IM&G 11%

CDMS 6%SUSE 6%

IAS 5%

Host Con. 4%Big Data 3%

C&N 4%

Maintenance52%

Subscription13%

Licence25%

Consultancy10%

Americas55%

APAC and Japan19%

EMEA26%

CDMS18%

SUSE18%

IAS16%

Host con.14%

C&N11%

Dev. and ITOM23%

Source: Management presentations; Note: Pro forma financials based on combined values for company’s respective financial years

Note: Pro forma for Serena

Strategy

• Infrastructure Software Market is mature and consolidating

• Key to performance is operational efficiency and scale

• Micro Focus is well positioned to be a leader

• Target returns of 15% - 20% per annum (28.7% compound since 2005)

• Efficient Balance Sheet – 2.5x net debt to Facility EBITDA

• Financial discipline

• Return cash

• Value enhancing acquisitions

47

Micro Focus Family TreeMicro Focus

Attachmate2014 @ $2.35bn

Serena2016 @ $540m

HPE Software2016 @ $8.8bn

NetIQ2006 @ $495m

Novell2010 @ $2.2bn

SUSE Linux2003 @ $210m

iConclude2007 @ $57m

Compuware ASQ2009 @ $80m

Borland Software2009 @ $75m

Visigenic Software1997 @ $130m

TogetherSoft2002 @ $185m

Segue Software2006 @ $100m

UNIX SYSTEMLABORITORIES

1992 @ $322m

WordPerfect1994 @ $1.4bn

CambridgeTechnology Partners

2001 @ $266m

SilverstreamSoftware

2002 @ $212m

e-Security2006 @ $72m

PlateSpin2008 @ $205m

Tower SoftwareEngineering

2008 @ $109m

Perigrine2005 @ $425m

Mercury2006 @ $4.5bn

Opsware2007 @ $1.6bn

ArcSight2010 @ $1.5bn

Autonomy2011 @ $11bn

Vertica2011 @ $350m

StorageApp2001 @ $350m

BluestoneSoftware

2000 @ $468m

FreshwaterSoftware

2001 @ $147m

Kintana2003 @ $225m

Systinet2006 @ $105m

Interwoven

2009 @ $775m

Verity

2005 @ $500m

e-Talk

2005 @ $72m

Zantaz

2007 @ $375m

Microlink

2010 @ $55m

Iron Mountain

2011 @ $380m

MetacodeTechnologies2000 @ $150m

iManage2003 @ $171m

Optimost2007 @ $52m

Innovative TechSystems

1998 @ $77m

Tivoli’s ServiceDesk

2000 @ $105m

Telco Research2000 @ $250m

Remedy2001 @ $1.08bn

Source: Barclays Research. Blue box denotes a key acquisition, dashed line denotes a subsequently-disposed-of business

• Double digit shareholder returns

• Revenue in FY17 minus 2% to zero

• FY17 gives base for modest growth in FY18

• Target Net Debt to Facility EBITDA at 2.5x

49

Outlook

Questions & Answers

Appendix

SUSE

• Total Contract Value (“TCV”)

• The value of the invoiced amount on any contract (“Billings”)

• Weighted Average Contract Period

• For the contracts signed and/or invoiced in the period the weighted average invoice period in months

• Annual Contract Value (“ACV”)

• The first 12 months value of the TCV in the period. Billings less than 12 months are included in full

• SUSE and Micro Focus

• Subscription and maintenance contract renewal rates are not being provided

• Our methodology is still being refined in order to accommodate data from our multiple systems

• Trending the maintenance revenues provides the best guidance for those revenue streams

• 52

Metrics Being Provided

Revenue by product portfolio ($m) Revenue by type ($m)

53

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

H1 15 H2 15 H1 16 H2 16 H1 17

CDMS Host Connectivity IAS Development & ITOM Collaboration & Network SUSE

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

H1 15 H2 15 H1 16 H2 16 H1 17

Maintenance Subscription Licence Services

Group Pro-forma Revenue at CCY by Half Year

54

17.7% 18.2% 17.2% 20.0% 19.5%

11.8%16.3% 15.3% 13.0% 13.5%

15.7%14.5% 15.0% 15.7% 14.6%

24.7%23.9%

22.8% 22.5%20.6%

14.9% 12.4%12.1% 10.6%

10.2%

15.1% 14.7% 17.7% 18.2% 21.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

H1 15 H2 15 H1 16 H2 16 H1 17CDMS Host Connectivity IAS Development and ITOM Collaboration and Network SUSE

Group Pro-forma Revenue by Portfolio at CCY

Group Pro-forma Revenue at CCY by Type($m)

55

COBOL Development & Mainframe Solutions Host Connectivity

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

H1 15 H2 15 H1 16 H2 16 H1 17Maintenance Licence Services

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

H1 15 H2 15 H1 16 H2 16 H1 17

Maintenance Licence Services


56

Identity & Access Security Development & IT Operations Management Tools

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

H1 15 H2 15 H1 16 H2 16 H1 17


0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

H1 15 H2 15 H1 16 H2 16 H1 17



57

Collaboration & Networking SUSE

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

H1 15 H2 15 H1 16 H2 16 H1 17


0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

H1 15 H2 15 H1 16 H2 16 H1 17

Subscription Services

Six months ended 31 October 2016 Six months ended 31 October 2015Y/E 30 April

2016

Before

exceptional

items

Exceptional

items Total

Before

exceptional

items

Exceptional

items Total Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000

Revenue 684,743 - 684,743 604,523 - 604,523 1,245,049

Cost of sales (73,031) (1,265) (74,296) (65,578) (932) (66,510) (135,432)

Gross profit 611,712 (1,265) 610,447 538,945 (932) 538,013 1,109,617

Selling and distribution costs (216,526) (2,002) (218,528) (194,600) (4,202) (198,802) (416,333)

Research and development expenses (133,359) (2,175) (135,534) (121,977) (682) (122,659) (259,388)

Administrative expenses (57,493) (35,606) (93,099) (61,314) (4,835) (66,149) (138,962)

Operating profit 204,334 (41,048) 163,286 161,054 (10,651) 150,403 294,934

Analyzed as:

Adjusted Operating profit 326,249 - 326,249 263,868 - 263,868 533,514

Share based compensation (15,521) - (15,521) (11,856) - (11,856) (28,793)

Amortization of purchased intangibles (106,394) - (106,394) (90,958) - (90,958) (181,934)

Exceptional items - (41,048) (41,048) - (10,651) (10,651) (27,853)


Share of results of associates (1,127) - (1,127) (1,129) - (1,129) (2,190)

Net finance costs (48,953) - (48,953) (50,439) - (50,439) (97,348)

Profit before tax 154,254 (41,048) 113,206 109,486 (10,651) 98,835 195,396

Taxation (28,140) 5,551 (22,589) (14,593) 3,296 (11,297) (32,424)

Profit for the period 126,114 (35,497) 90,617 94,893 (7,355) 87,538 162,972

ConsolidatedIncome Statement

Six months ended 31 October 2016 Six months ended 31 October 2015 Y/E 30 April 2016

Before

exceptional

items

Exceptional

items Total

Before

exceptional

items

Exceptional

items Total Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000

Profit for the period 126,114 (35,497) 90,617 94,893 (7,355) 87,538 162,972

Other comprehensive income

Actuarial (loss)/gain on pension

liabilities schemes(3,521) - (3,521) 6,260 - 6,260 2,697

Actuarial gain on non-plan

Pension assets2,482 - 2,482 1,205 - 1,205 3,104

Deferred tax movement on pensions 326 - 326 (2,344) - (2,344) (1,745)

Currency translation differences (5,708) - (5,708) (1,774) - (1,774) (3,458)

Other comprehensive (expense)/

income for the period(6,421) - (6,421) 3,347 - 3,347 598

Total comprehensive

income for the period119,693 (35,497) 84,196 98,240 (7,355) 90,885 163,570

Attributable to:

Equity shareholders of the parent 119,714 (35,497) 84,217 98,023 (7,355) 90,668 163,492

Non-controlling interests (21) - (21) 217 - 217 78

Total comprehensive

income for the period119,693 (35,497) 84,196 98,240 (7,355) 90,885 163,570

Earnings per share expressed

In cents per share

-basic 39.57 40.17 74.50

-diluted 38.12 38.58 71.61

Earnings per share expressed

In pence per share

-basic 29.49 25.96 49.59

-diluted 28.41 24.94 47.66

Consolidated Income Statement (continued)

As at 31 October 2016

$’000


$’000

As at 30 April 2016

$’000

ASSETS

Non-current assets

Goodwill 2,827,825 2,436,168 2,436,168

Other intangible assets 1,186,184 1,050,581 966,555

Property, plant and equipment 40,537 42,525 40,867

Investments in associates 11,584 13,772 12,711

Long-term pension assets 24,120 19,114 22,272

Other non-current assets 3,230 3,515 4,002

Deferred tax assets 208,230 219,343 198,757

4,301,710 3,785,018 3,681,332

Current assets

Inventories 63 78 93

Trade and other receivables 277,958 215,224 268,186

Current tax receivables 3,432 - 18,016

Cash and cash equivalents 122,970 91,566 667,178

Assets classified as held for sale 888 888 888

405,311 307,756 954,361

TOTAL ASSETS 4,707,021 4,092,774 4,635,693

LIABILITIES

Current liabilities

Trade and other payables 151,163 137,020 188,090

Borrowings 294,192 50,600 275,256

Provisions 15,420 27,784 10,545

Current tax liabilities 29,583 27,515 22,426

Current deferred income 582,412 537,280 565,480

1,072,770 780,199 1,061,797

Non-current liabilities

Non-current deferred income 204,342 171,407 196,483

Borrowings 1,441,337 1,495,272 1,469,953

Retirement benefit obligations 34,599 26,695 31,669

Long-term provisions 11,729 16,634 14,354

Other non-current liabilities 11,021 4,039 3,671

Deferred tax liabilities 349,464 286,450 264,038

2,052,492 2,000,497 1,980,168

TOTAL LIABILITIES 3,125,262 2,780,696 3,041,965

NET ASSETS 1,581,759 1,312,078 1,593,728

Consolidated Statementof Financial Position

Consolidated Statement of Financial Position (continued)

61


$’000


$’000

As at 30 April 2016

$’000

EQUITY

Ordinary shares 39,650 39,558 39,573

Share premium account 190,727 16,559 190,293

Merger reserve 988,104 1,168,104 988,104

Capital redemption reserve 163,363 163,363 163,363

Retained earnings (deficit) 221,593 (61,380) 228,344

Foreign currency translation reserve (deficit) (22,714) (15,322) (17,006)

TOTAL EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT 1,580,723 1,310,882 1,592,671

Non-controlling interests 1,036 1,196 1,057

TOTAL EQUITY 1,581,759 1,312,078 1,593,728

Group Income Statement: Operating profit

62

Six months ended 31 October 2016 Six months ended 31 October 2015 Y/E 30 April 2016

Before

exceptional

items

Excep-

tional items Total

Before

exceptional

items

Excep-tional

items Total Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000

Revenue 684,743 - 684,743 604,523 - 604,523 1,245,049

Cost of sales (73,031) (1,265) (74,296) (65,578) (932) (66,510) (135,432)

Selling and distribution costs (216,526) (2,002) (218,528) (194,600) (4,202) (198,802) (416,333)

Research and development expenses (133,359) (2,175) (135,534) (121,977) (682) (122,659) (259,388)

Administrative expenses (57,493) (35,606) (93,099) (61,314) (4,835) (66,149) (138,962)

Total costs (480,409) (41,048) (521,457) (443,469) (10,651) (454,120) (950,115)


EBITDA Reconciliation

63

Six months ended

31 October 2016

$’000

Six months ended

31 October 2015

$’000

Year ended

30 April 2016

$’000

Operating profit 163,286 150,403 294,934

Exceptional items 41,048 10,651 27,853

Share-based compensation charge 15,521 11,856 28,793

Amortization of purchased intangibles 106,394 90,958 181,934

Adjusted operating profit 326,249 263,868 533,514

Depreciation 5,712 5,770 11,419

Amortization of software 574 918 1,864

Adjusted EBITDA 332,535 270,556 546,797

EBITDA 288,083 256,817 509,666

Amortization of capitalized development costs (12,117) (8,768) (19,515)

Share-based compensation charges 15,521 11,856 28,793

Exceptional items 41,048 10,651 27,853

Adjusted EBITDA 332,535 270,556 546,797

Adjusted EBITDA less Exceptional items 291,487 259,905 518,944

Cash generated from continuing operations 201,910 162,695 456,113

Cash conversion ratio = Cash generated from continuing operations

Adjusted EBITDA less Exceptional items69.3% 62.6% 87.9%

Consolidated Cash Flowand Net Debt Position Six months ended 31

October 2016

$’000

Six months ended 31

October 2015

$’000


$’000


Interest paid (42,879) (52,200) (91,807)

Bank loan costs (5,864) (753) (1,805)

Tax (paid)/received (18,183) (47,707) (79,282)

Net cash generated from operating activities 134,984 62,035 283,219

Cash flows from investing activities

Payments of intangible assets (17,571) (15,786) (34,488)

Purchase of property, plant and equipment (6,454) (5,917) (10,281)

Interest received 502 448 1,009

Payment for acquisition of subsidiaries (293,797) (9,960) (9,960)

Repayment of bank borrowings on acquisitions (316,650) - -

Net cash acquired with acquisitions 68,173 106 106

Net cash used in investing activities (565,797) (31,109) (53,614)

Cash flows from financing activities

Proceeds from issue of ordinary share capital 467 475 968

Proceeds from share placement - - 225,720

Costs associated with share placement - - (2,979)

Repayment of bank borrowings (126,375) (126,375) (157,750)

Net proceeds from bank borrowings 115,000 20,000 245,000

Dividends paid to owners (111,023) (70,015) (105,159)

Net cash (used in)/generated from financing activities (121,931) (175,915) 205,800

Effects of exchange rate changes 8,536 (4,769) (9,551)

Net (decrease)/increase in cash and cash equivalents (544,208) (149,758) 425,854

Cash and cash equivalents at beginning of period/year 667,178 241,324 241,324

Cash and cash equivalents at end of period/year 122,970 91,566 667,178

Debt outstanding at end of period (1,735,529) (1,545,872) (1,745,209)

Net debt at end of period (1,612,559) (1,454,306) (1,078,031)

Pro-forma Revenues by Geography at Constant CurrencyGeographic Analysis Revenue

(at constant currency) Six months ended 31 October 2016 Six months ended 31 October 2015 Pro-forma CCY

$m % $m %

CDMS

North America 62.5 46.9% 52.6 45.1%

International 51.3 38.5% 46.6 39.9%

Asia Pacific 19.4 14.6% 17.5 15.0%

Total 133.2 100.0% 116.7 100.0%

Host Connectivity

North America 68.0 73.6% 74.8 72.3%

International 19.9 21.5% 24.9 24.1%

Asia Pacific 4.5 4.9% 3.7 3.6%

Total 92.4 100.0% 103.4 100.0%

IAS

North America 51.3 51.1% 51.4 50.7%

International 40.1 40.0% 41.7 41.1%

Asia Pacific 8.9 8.9% 8.3 8.2%

Total 100.3 100.0% 101.4 100.0%

Development & ITOM

North America 84.6 59.9% 88.2 57.2%

International 45.8 32.4% 51.7 33.5%

Asia Pacific 10.9 7.7% 14.3 9.3%

Total 141.3 100.0% 154.2 100.0%

Collaboration & Network

North America 33.4 47.6% 42.7 52.3%

International 30.6 43.7% 32.8 40.2%

Asia Pacific 6.1 8.7% 6.1 7.5%

Total 70.1 100.0% 81.6 100.0%

Micro Focus

North America 299.8 55.8% 309.7 55.6%

International 187.7 34.9% 197.7 35.5%

Asia Pacific 49.8 9.3% 49.9 8.9%

Total 537.3 100.0% 557.3 100.0%

SUSE

North America 59.9 40.6% 50.8 42.5%

International 70.0 47.5% 54.2 45.4%

Asia Pacific 17.5 11.9% 14.5 12.1%

Total 147.4 100.0% 119.5 100.0%

TOTAL

North America 359.7 52.5% 360.5 53.3%

International 257.7 37.7% 251.9 37.2%

Asia Pacific 67.3 9.8% 64.4 9.5%

TOTAL 684.7 100.0% 676.8 100.0%

Group Pro-forma Revenue by Geography

at CCY Six months ended 31 October 2016

As Reported Actual


Pro-forma CCY


Pro-forma CCY (Decline/ Growth)


As Reported Actual

Year ended 30 April 2016 Pro-

forma CCY

$m $m % $m $m

Micro Focus

North America 229.8 309.7 (3.2%) 260.8 627.6

International 187.7 197.7 (5.1%) 180.1 420.4

Asia Pacific & Japan 49.8 49.9 (0.2%) 42.4 101.9

Total 537.3 557.3 (3.6%) 483.3 1,149.9

SUSE

North America 59.9 50.8 17.9% 50.9 108.6

International 70.0 54.2 29.2% 56.2 112.7

Asia Pacific & Japan 17.5 14.5 20.7% 14.1 30.4

Total 147.4 119.5 23.3% 121.2 251.7

Group

North America 359.7 360.5 (0.2%) 311.7 736.2

International 257.7 251.9 2.3% 263.3 533.1

Asia Pacific & Japan 67.3 64.4 4.5% 56.5 132.3

Total revenue 684.7 676.8 1.2% 604.5 1,401.6

Proportion of Revenue by Portfolio

Six months

ended

31 October

2016

As Reported

Actual

Six months

ended

31 October

2015

Pro-forma

CCY

(Decline)/

Growth

Six months

ended

31 October

2015

As reported

Actual

Year

ended

30 April

2016

Pro-forma

CCY

Year

ended

30 April

2016

As reported

Actual

COBOL Development & Mainframe

Solutions 19.4% 17.2% 12.8% 19.2% 18.6% 20.8%

Host Connectivity 13.6% 15.3% (11.1%) 17.2% 14.1% 15.9%

Identity, Access & Security 14.6% 15.0% (2.7%) 17.0% 15.4% 17.4%

Development & IT Operations

Management Tools 20.6% 22.8% (9.6%) 12.8% 22.6% 12.6%

Collaboration & Networking 10.3% 12.1% (14.9%) 13.8% 11.3% 12.9%

Micro Focus Portfolio 78.5% 82.4% (4.7%) 80.0% 82.0% 79.6%

SUSE Portfolio 21.5% 17.6% 22.2% 20.0% 18.0% 20.4%

Micro Focus Group 100.0% 100.0% 100.0% 100.0% 100.0%

interim results for the six months ended 31 october 2016€¦ · interim results for the six months...

Documents