OPEN TEXT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. dollars)

Year Ended June 30,

2015

2014

2013

Cash flows from operating activities:

Net income for the period

$

234,406

$

218,074

$

148,520

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

Depreciation and amortization of intangible assets

240,147

186,177

186,851

Share-based compensation expense

22,047

19,906

15,575

Excess tax benefits on share-based compensation expense

(1,675)

(1,844)

(915)

Pension expense

4,796

3,232

1,448

Amortization of debt issuance costs

4,556

3,191

2,123

Amortization of deferred charges and credits

10,525

11,307

11,815

Loss on sale and write down of property and equipment

1,368

15

24

Deferred taxes

(14,578)

(12,334)

(5,796)

Release of unrealized gain on marketable securities to income

(3,098)

—

—

Write off of unamortized debt issuance costs

2,919

—

—

Changes in operating assets and liabilities:

Accounts receivable

43,189

(17,186)

17,965

Prepaid expenses and other current assets

(3,534)

11,146

4,242

Income taxes

2,933

11,308

(17,053)

Deferred charges and credits

—

9,870

(9,274)

Accounts payable and accrued liabilities

(22,714)

(36,478)

(41,947)

Deferred revenue

6,775

16,601

5,418

Other assets

(5,031)

(5,858)

(494)

Net cash provided by operating activities

523,031

417,127

318,502

Cash flows from investing activities:

Additions of property and equipment

(77,046)

(42,268)

(23,107)

Proceeds from maturity of short-term investments

17,017

—

—

Purchase of patents

—

(192)

(192)

Purchase of Actuate Corporation, net of cash acquired

(291,800)

—

—

Purchase of Informative Graphics Corporation, net of cash acquired

(35,180)

—

—

Purchase of GXS Group, Inc., net of cash acquired

—

(1,076,886)

—

Purchase of Cordys Holding B.V., net of cash acquired

—

(30,588)

—

Purchase of EasyLink Services International Corporation, net of cash acquired

—

—

(315,331)

Purchase of Resonate KT Limited, net of cash acquired

—

—

(19,366)

Purchase of ICCM Professional Services Limited, net of cash acquired

—

—

(11,257)

Purchase of System Solutions Australia Pty Limited, net of cash acquired

—

—

(516)

Purchase of a division of Spicer Corporation

(222)

—

—

Purchase consideration for prior period acquisitions

(590)

(887)

(875)

Other investing activities

(10,574)

(2,547)

(3,750)

Net cash used in investing activities

(398,395)

(1,153,368)

(374,394)

Cash flows from financing activities:

Excess tax benefits on share-based compensation expense

1,675

1,844

915

Proceeds from issuance of Common Shares

15,240

24,808

16,347

Equity issuance costs

—

(144)

—

Purchase of Treasury Stock

(10,126)

(1,275)

—

Proceeds from long-term debt

800,000

800,000

—

Repayment of long-term debt

(530,284)

(45,911)

(30,677)

Debt issuance costs

(18,271)

(16,685)

—

Payments of dividends to shareholders

(87,629)

(74,693)

(17,703)

Net cash used in (provided by) financing activities

170,605

687,944

(31,118)

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

(23,132)

5,742

(2,292)

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

272,109

(42,555)

(89,302)

Cash and cash equivalents at beginning of the period

427,890

470,445

559,747

Cash and cash equivalents at end of the period

$

699,999

$

427,890

$

470,445