OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

(unaudited)

Three Months Ended June 30,

2019

2018

Cash flows from operating activities:

Net income for the period

$

72,015

$

61,893

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

Depreciation and amortization of intangible assets

117,146

117,677

Share-based compensation expense

6,618

7,121

Pension expense

1,212

904

Amortization of debt issuance costs

1,096

811

Amortization of deferred charges and credits

—

1,067

Write off of unamortized debt issuance costs

—

155

Loss on sale and write down of property and equipment

—

1,745

Deferred taxes

36,118

27,096

Share in net (income) loss of equity investees

(3,016)

(6,468)

Changes in operating assets and liabilities:

Accounts receivable

22,731

33,132

Contract assets

(8,751)

—

Prepaid expenses and other current assets

(324)

3,261

Income taxes and deferred charges and credits

6,285

(9,255)

Accounts payable and accrued liabilities

8,912

628

Deferred revenue

(25,961)

(39,075)

Other assets

(4,304)

3,368

Net cash provided by operating activities

229,777

204,060

Cash flows from investing activities:

Additions of property and equipment

(13,405)

(22,280)

Purchase of Hightail Inc.

—

(69)

Other investing activities

(8,762)

(6,855)

Net cash used in investing activities

(22,167)

(29,204)

Cash flows from financing activities:

Proceeds from issuance of long-term debt and revolver

—

1,000,000

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

15,792

9,871

Repayment of long-term debt and revolver

(2,500)

(1,043,800)

Debt issuance costs

—

(4,375)

Payments of dividends to shareholders

(46,958)

(40,617)

Net cash provided by (used in) financing activities

(33,666)

(78,921)

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

83

(19,889)

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

174,027

76,046

Cash, cash equivalents and restricted cash at beginning of the period

769,516

607,945

Cash, cash equivalents and restricted cash at end of the period

$

943,543

$

683,991

Reconciliation of cash, cash equivalents and restricted cash:

June 30, 2019

June 30, 2018

Cash and cash equivalents

941,009

682,942

Restricted cash included in Other assets

2,534

1,049

Total Cash, cash equivalents and restricted cash

$

943,543

$

683,991