OPEN TEXT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

(unaudited)

Three Months Ended March 31,

Nine Months Ended March 31,

2018

2017

2018

2017

Cash flows from operating activities:

Net income for the period

$

58,800

$

21,712

$

180,407

$

979,657

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization of intangible assets

117,158

96,667

339,252

242,644

Share-based compensation expense

5,080

6,661

20,473

22,373

Excess tax expense (benefits) on share-based compensation expense

—

(1,044)

—

(1,586)

Pension expense

965

892

2,834

2,953

Amortization of debt issuance costs

1,303

1,127

3,835

3,781

Amortization of deferred charges and credits

941

2,146

3,175

6,438

Loss on sale and write down of property and equipment

326

—

489

—

Release of unrealized gain on marketable securities to income

—

—

(841)

—

Deferred taxes

18,266

(22,011)

62,640

(890,244)

Share in net (income) loss of equity investees

307

(160)

503

(6,153)

Write off of unamortized debt issuance costs

—

833

—

833

Other non-cash charges

—

—

—

1,033

Changes in operating assets and liabilities:

Accounts receivable

(6,240)

(37,551)

(55,698)

(37,095)

Prepaid expenses and other current assets

(5,152)

(18,119)

(10,535)

(6,234)

Income taxes and deferred charges and credits

(23,651)

11,190

(22,068)

1,570

Accounts payable and accrued liabilities

(19,779)

40,516

(92,278)

16,521

Deferred revenue

123,550

54,659

74,704

6,917

Other assets

(1,197)

(1,215)

(2,466)

(6,635)

Net cash provided by operating activities

270,677

156,303

504,426

336,773

Cash flows from investing activities:

Additions of property and equipment

(27,101)

(17,797)

(83,038)

(50,071)

Proceeds from maturity of short-term investments

—

—

—

9,212

Purchase of Hightail Inc.

(20,466)

—

(20,466)

—

Purchase of Guidance Software,  net of cash acquired

—

—

(229,275)

—

Purchase of Covisint Corporation, net of cash acquired

—

—

(71,279)

—

Purchase of ECD Business

—

(1,622,394)

—

(1,622,394)

Purchase of HP Inc. CCM Business

—

—

—

(315,000)

Purchase of Recommind, Inc.

—

—

—

(170,107)

Purchase consideration for acquisitions completed prior to Fiscal 2017

—

—

—

(7,146)

Other investing activities

(3,118)

(2,450)

(11,179)

(3,013)

Net cash used in investing activities

(50,685)

(1,642,641)

(415,237)

(2,158,519)

Cash flows from financing activities:

Excess tax (expense) benefits on share-based compensation expense

—

1,044

—

1,586

Proceeds from issuance of long-term debt and revolver

—

225,000

200,000

481,875

Proceeds from issuance of Common Shares from exercise of stock options and ESPP

36,442

15,967

66,064

26,668

Proceeds from issuance of Common shares under public Equity Offering

—

—

—

604,223

Repayment of long-term debt and revolver

(101,940)

(1,940)

(105,820)

(5,940)

Debt issuance costs

—

(2,045)

—

(6,200)

Equity issuance costs

—

(1,345)

—

(19,472)

Purchase of treasury stock

—

(4,245)

—

(4,245)

Payments of dividends to shareholders

(35,168)

(30,303)

(104,996)

(85,953)

Net cash provided by (used in) financing activities

(100,666)

202,133

55,248

992,542

Foreign exchange gain (loss) on cash held in foreign currencies

10,157

10,714

17,703

(5,553)

Increase (decrease) in cash and cash equivalents during the period

129,483

(1,273,491)

162,140

(834,757)

Cash and cash equivalents at beginning of the period

476,014

1,722,491

443,357

1,283,757

Cash and cash equivalents at end of the period

$

605,497

$

449,000

$

605,497

$

449,000