EX-99.2 3 d318860dex992.htm EX-99.2

Exhibit 99.2 Fiscal Q2 2022 Earnings Presentation May 11, 2022 Shuky Sheffer President & CEO Tamar Rapaport-Dagim CFO & COO

The information contained herein in this presentation or delivered or to be delivered to you during this presentation does not constitute an offer, expressed or implied, or a recommendation to do any transaction in Amdocs Limited securities or in any securities of its affiliates or subsidiaries. This presentation and the comments made by members of Amdocs management in conjunction with it include information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs’ growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, the duration and severity of the COVID-19 pandemic, and its impact on the global economy, Amdocs’ ability to grow in the business markets that it serves, Amdocs’ ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, Amdocs specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs’ filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2021 filed on December 9, 2021, and our Form 6-K furnished for the first quarter of fiscal 2022 on February 14, 2022. This presentation includes non-GAAP financial measures, including non-GAAP operating margin, free cash flow, normalized free cash flow, revenue on a constant currency basis, non-GAAP net income and non-GAAP earnings per share. Free cash flow equals cash generated by operating activities less net capital expenditures and other. Normalized free cash flow, a measure of our operating performance, is further adjusted to exclude net capital expenditures related to the new campus development, payments for non-recurring and unusual charges (such as capital gains tax to be paid in relation to the divestiture of OpenMarket), and payments of acquisition related liabilities. These non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Amdocs believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Amdocs’ results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Amdocs’ results of operations in conjunction with the corresponding GAAP measures. Please refer to the appendix for a reconciliation of these metrics to the most comparable GAAP provision. This presentation also includes pro forma metrics which exclude the financial impact of OpenMarket (divested on December 31, 2020) from fiscal year 2021. Please also review the information contained in Amdocs’ press release dated May 11, 2022 with respect to earnings for fiscal Q2 2022. The press release contains additional information regarding Amdocs’ outlook for fiscal years 2022, 2023 and 2024 and certain non-GAAP metrics and their reconciliations. Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 2

Today’s Speakers Shuky Tamar Sheffer Rapaport-Dagim President & Chief Financial Officer & Chief Executive Officer Chief Operating Officer IIn nf for orm ma at tiion on Se Sec cu ur riit ty y L Le evel vel 0 0 – – P Pu ub blliic c. . © © 20 2022 22 – – P Pr rop opr riie et ta ar ry y & & Con Conf fiid de en nt tiia all IIn nf for orm ma at tiion on of of A Am md doc ocs s 3

Earnings call agenda Strategy & Business Performance Update 1 Shuky Sheffer, President & Chief Executive Officer Financial Review & Outlook 2 Tamar Rapaport-Dagim, Chief Financial Officer & Chief Operating Officer Q&A 3 Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 4

President & Chief Executive Officer Strategy and business performance update IIn nf for orm ma at tiion on Se Sec cu ur riit ty y L Le evel vel 0 0 – – P Pu ub blliic c. . © © 20 2022 22 – – P Pr rop opr riie et ta ar ry y & & Con Conf fiid de en nt tiia all IIn nf for orm ma at tiion on of of A Am md doc ocs s 5

Thank you for an exceptional first half A huge thank you to our thousands of employees worldwide. Following a great Q1, our second quarter was also very strong, and I couldn’t be more pleased with our operational and financial execution for the fiscal year to date Credit for strong performance and improved outlook belongs to our global, diverse and incredibly talented employees IIn nf for orm ma at tiion on Se Sec cu ur riit ty y L Le evel vel 0 0 – – P Pu ub blliic c. . © © 20 2022 22 – – P Pr rop opr riie et ta ar ry y & & Con Conf fiid de en nt tiia all IIn nf for orm ma at tiion on of of A Am md doc ocs s 6 6

Q2 Operational Highlights Very strong second quarter and FY22 first half Business Activity Commitment to Execution & Sales Momentum Innovation Record number of customer milestones Continued to accelerate Particularly high activity in North America deliveries R&D investment in Q2, underscoring our Unrivalled reputation for project delivery commitment to Supporting its multi-year Core part of its digital continuously bring cutting- Strengthen ability to maintain high win rate modernization of the modernization edge technology and consumer domain journey world-class products and platforms to market Multiple new strategic awards Managed Services Extension and cloud transformation Launched CES22, our latest open and modular cloud- Managed Services Extension, native, 5G suite Future cloud projects Q4 2021 Q1 2022 Q2 2022 Strong feedback received in Digital Transformation respect to our offering and Major B2B digital transformation: strategic direction Tier 1 European throughout dozens of C-level 5G Policy Solution customer executive meetings Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 7

Strong performance in Q2-FY2022 2 Revenue 12-month backlog Non-GAAP EPS Record $1.15B, Record accelerated growth $1.54 (1) of $3.89B of 10% YoY At higher end of the $1,110- Above $1.22-$1.28 guidance ~ +10% YoY $1,150 guidance range range mainly due to a lower +$60m QoQ Driven primarily by North than anticipated non-GAAP driven by robust sales America, with high activity effective tax rate for the momentum levels across top customers quarter 1. Constant currency. Assumes exchange rates in the current period were unchanged from the prior period 2. Non-GAAP. See reconciliation tables in appendix IIn nf for orm ma at tiion on Se Sec cu ur riit ty y L Le evel vel 0 0 – – P Pu ub blliic c. . © © 20 2022 22 – – P Pr rop opr riie et ta ar ry y & & Con Conf fiid de en nt tiia all IIn nf for orm ma at tiion on of of A Am md doc ocs s 8

War in Fully compliant with the applicable sanctions and export controls Stopped all new sales of our products and services in Russia Immaterial Amdocs exposure to Russia and Ukraine Ensuring the wellbeing of the employees and contractors we have in the region, and to support those who wanted to leave with their families Actively providing humanitarian aid in Ukraine and neighboring countries, including: Donation campaign Working Sponsoring Sponsoring to provide essential with temporary clothing and services via UNICEF to local housing for stipends for vulnerable children community refugees in Ukrainian kids in a and families affected volunteers Poland boarding school Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 9

Progress in Strategic Domains Helping service providers deliver seamless experiences to their consumers and enterprise customers, enabled by the innovation we bring across key domains: wins business value CLOUD MANAGED SERVICES Cloud platforms and services, which accelerate Enrich BSS platform with real-time, agile EXTENSION and cloud-ready ecosystem the multi-year journeys to the public cloud to realize operational agility, scalability and Further accelerate T-Mobile / Sprint merger BUSINESS ASSURANCE ultimately, cloud at scale synergies wins business value 5G Monetization of new 5G services based on ultra low- Enable launching of cutting-edge 5G Tier 1 5G POLICY European services and business models for its latency connectivity, immersive entertainment, and SOLUTION customer customers, while reducing operational costs connected industries wins business value DIGITAL Unified customer journey across fixed-line DIGITAL Creating seamless digital experiences: enhance and mobile, shorter average handling times, TRANSFORMATION customer experience and transform operations reduced time to market, and cost savings Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 10

Progress in Strategic Domains (cont’d) Helping service providers deliver seamless experiences to their consumers and enterprise customers, enabled by the innovation we bring across key domains: wins business value NETWORK AUTOMATION INVENTORY Improve time-to-market with innovative MODERNIZATION new services in the 5G and cloud era Real-time, automated networks to deliver Harmonization of inventory systems across INVENTORY & multiple European countries will enable dynamic connected experiences NEXTGEN OSS improved efficiency and cost savings MULTI-YEAR NETWORK Network optimization OPTIMIZATION TESTING wins business value MEDIA Ability to add entertainment subscriptions to monthly bill or bigger bundle with existing Monetize partner ecosystem and retain customers’ broadband, mobile and cable packages end-users; support content delivery and monetization and expand company's growing portfolio of new OTT partners Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 11

Looking ahead: Tracking at the high end of guidance in FY2022 Amdocs is well positioned to A (1)(2) Reiterating monetize a large and expanding 6.0%-10.0% FY2022-2024 pipeline of opportunity: Annual three-year revenue growth revenue target (Guidance does not depend on a growth outlook material level of M&A activity) Innovative market-leading technology Tracking at high end of guidance range B Unrivalled for both revenue and EPS: track-record of execution FY2022 Revenue growth revenue and 8.0%-10.0% 1,2 Pro forma, constant currency EPS guidance Highly skilled 3 Non-GAAP EPS growth and talented employee base 9.0%-12.0% 1 Pro forma 1. Pro forma excludes the financial impact of OpenMarket (which was divested on December 31, 2020) from fiscal year 2021. 2. Constant currency. Assumes exchange rates in the current period were unchanged from the prior period 3. Pro forma non-GAAP diluted. See reconciliation tables in appendix IIn nf for orm ma at tiion on Se Sec cu ur riit ty y L Le evel vel 0 0 – – P Pu ub blliic c. . © © 20 2022 22 – – P Pr rop opr riie et ta ar ry y & & Con Conf fiid de en nt tiia all IIn nf for orm ma at tiion on of of A Am md doc ocs s 12

Chief Financial Officer & Chief Operating Officer Financial Update & Outlook IIn nf for orm ma at tiion on Se Sec cu ur riit ty y L Le evel vel 0 0 – – P Pu ub blliic c. . © © 20 2022 22 – – P Pr rop opr riie et ta ar ry y & & Con Conf fiid de en nt tiia all IIn nf for orm ma at tiion on of of A Am md doc ocs s 13

Q2 2022 Results Q2 2022 Revenue vs. Guidance $ Millions Q2 Revenue $1,145 million (2) +10.1% YoY $1,145 $1,130 High-end of guidance ($1,110M - $1,150M) (3) Q2 Non-GAAP Operating Margin Original Q2F22 Q2F22A Record revenue in Q2 2022 Guidance (midpoint) 17.6%, +10 bps QoQ rd 3 straight quarter of +10% YoY revenue (1)(2) Above midpoint of annual growth target range of 17.2% - 17.8%, Best-ever quarter in North America and unchanged YoY Q2 2022 Revenue by Region Consistent non-GAAP operating margin $ Millions while accelerating R&D investments Q2 GAAP Diluted EPS Diluted EPS positively impacted by lower Rest of World $1.28 $226 than anticipated tax rate Above guidance high-end ($0.96 - $1.04) North America Europe 1. Pro forma metrics exclude the financial impact of OpenMarket (which was divested on December 31, 2020) from fiscal year 2021. $772 $147 (3) Q2 Non-GAAP Diluted EPS 2. Constant currency. Assumes exchange rates in the current period were unchanged from the prior period $1.54 3. Non-GAAP. See reconciliation tables in appendix Above guidance high-end Information Security Level 0– Public© 2022 – Proprietary & ($1.22 - $1.28) Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 14 14 Confidential Information of Amdocs

12-Month Backlog Record Quarterly 12-Month Backlog in Q2F22 12-month backlog growth has accelerated $ Billions $3.89 year-over-year over the past several quarters $3.83 Record-high level as of $3.69 March 31, 2022 ~ +10% (1) (1) $3.59 YoY $3.54 ~ +10% YoY, +$60M QoQ (1) $3.49 (1) Q1F21 Q2F21 Q3F21 Q4F21 Q1F22 Q2F22 Leading Indicator 12-month backlog includes: • Anticipated revenue related to contracts 12-month backlog • Estimated revenue from managed services contracts typically covers ~80% of • Letters of intent forward 12-month • Maintenance revenue • Estimated ongoing support activities Information Security Level 0– Public© 2022 – Proprietary & Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 15 15 Confidential Information of Amdocs

Record-High Managed Services Revenue in Q2F22 $ Millions Managed services Managed Services arrangements support $663 $635 business model resiliency with highly ~ +5% recurring revenue YoY streams, multi-year engagements and Record-high level as of high renewal rates, Q2F21 Q2F22 and may also include March 31, 2022 large-scale digital ~ +5% YoY transformation projects managed Close to Philippines services contract Canada 100% renewals 5-year managed services 3-year managed services extension through 2027 extension through 2028 Support continued cloud Future projects to support transformation PLDT’s cloud journey Information Security Level 0– Public© 2022 – Proprietary & Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 16 16 Confidential Information of Amdocs

(2) DSO’s Q2 2022 Free cash flow bridge Reported FCF vs. Normalized FCF, $ Millions 81 days +2 days YoY and +2 days QoQ DSO’s may fluctuate from quarter to quarter $169 $47 $160 $30 $8 $122 Deferred revenue > unbilled Improved by $48 million Deferred revenue: +$17M QoQ Unbilled receivables: -$31M QoQ Items fluctuate from quarter to quarter in line with normal business activities. Cashflow Net capex Reported Israel Other Normalized from & other FCF campus FCF Operations Strong normalized free cash flow of *Figures may not sum due to rounding $160 million, even with Q2 seasonal weakness due to the timing of Cash, Credit Facility & Debt Position Liquidity: Cash + Credit Facility annual bonus payments $ Millions, as of March 31, 2022 $1.4 billion Credit Ample liquidity to support ongoing Facility Ample liquidity including available $500 business needs while retaining the $500M revolving credit facility capacity to fund future strategic growth investments Cash $856 Baa2 BBB $650 Moody’s S&P 1. $650M senior note, maturing June 2030 Remain committed to maintaining 2. Non-GAAP. See reconciliation tables in appendix (1) $0 Liquidity Debt our Investment grade credit rating Information Security Level 0– Public© 2022 – Proprietary & Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 17 17 Confidential Information of Amdocs

(1) Q2 2022 Cash Returned to Shareholders FY2022E Normalized FCF outlook $ Millions $ Millions Dividends, $44 $131 $19 $650 $500 Share repurchases, $130 As of March 31, roughly $0.7B of share Reported Israel Other Normalized Reiterating normalized free cash FCF campus FCF repurchase authorization capacity remained flow (FCF) outlook of $650M in FY2022, equating to ~100% cash (1) Normalized FCF : Three-year historical trend and FY2022E outlook conversion 140% 103% 100% (1) 88% % Normalized FCF / 100% (1) Non-GAAP Net Income Expect the majority of normalized 100% 99% 89% FY2022E free cash flow to be returned to % of Normalized FCF guidance: Returned to Shareholders shareholders by way of share return majority repurchases and quarterly cash dividend payments in FY2022 $869 (1) $650 $613 Normalized FCF ($M) $527 FY2019 FY2020 FY2021 FY2022E 1. Non-GAAP. See reconciliation tables in appendix (Guidance) Information Security Level 0– Public© 2022 – Proprietary & Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 18 18 Confidential Information of Amdocs

Revenue Growth (4) YoY% Growth Constant Currency (1) (4) FY21 and FY22E revenue is pro forma constant currency 10.0% Tracking at 7.0% high end of 8.0% pro forma guidance 4.1% 2.4% 2.3% Tracking in line with high end of (1) (1)(4) (1)(4) pro forma outlooks for revenue FY2018 FY2019 FY2020 FY2021 FY2022E (4) (2) and diluted non-GAAP EPS growth in FY2022E (3) Total Shareholder Return (2) Non-GAAP Diluted EPS Growth YoY % + Dividend Yield (1) Firmly positioned to deliver FY21 and FY22E non-GAAP EPS growth is presented pro forma ~14%* double-digit total shareholder returns for the 11.7% Tracking at 12.0% high end of second year running 8.6% 7.6% pro forma 9.8% 1. Pro forma metrics exclude the financial impact of OpenMarket (which was 9.0% guidance 5.3% divested on December 31, 2020) from fiscal year 2021. 6.9% 6.1% 2. Non-GAAP. See reconciliation tables in appendix 3.0% 3. Expected total shareholder return assumes Non-GAAP EPS growth plus 3.0% dividend yield (based on fiscal year end closing share price); FY2022E 1.9% 1.7% 2.3% 2.1% 1.5% assumed midpoint of pro forma non-GAAP EPS outlook, and dividend yield based on proposed new quarterly rate of $0.395 as of share price on (1) (1) 11/2/21 FY2018 FY2019 FY2020 FY2021 FY2022E 4. Constant currency. Assumes exchange rates in the current period were Non-GAAP Diluted EPS Growth Dividend Yield Total Shareholder Return unchanged from the prior period Information Security Level 0– Public© 2022 – Proprietary & *Non-GAAP pro forma EPS growth of 12%, plus ~2% dividend yield Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 19 19 Confidential Information of Amdocs

Q&A Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 20 20

Q3 Fiscal 2022 Outlook $1,140 - $1,180 million Revenue GAAP EPS $0.97 - $1.05 (2) Non-GAAP EPS $1.23 - $1.29 Share Count 124 million Above high-end of annual Effective Tax Rate (2) Non-GAAP Tracking at high-end of target range of 13%-17% (1) pro forma outlooks for (3) Full Year Fiscal 2022 Outlook Updated Previous revenue and diluted non- (2) GAAP EPS growth in Revenue growth 5.2% - 7.2% 3.4% - 7.4% As reported FY2022E Revenue growth 8.0% - 10.0% 6.0% - 10.0% (1) (3) Pro forma , constant currency (2) Non-GAAP EPS growth 7.3% - 10.3% 6.3% - 10.3% As reported 1. Pro forma metrics exclude the financial impact of OpenMarket (which was (2) Non-GAAP EPS growth divested on December 31, 2020) from fiscal year 2021. 9.0% - 12.0% 8.0% - 12.0% (1) Pro forma 2. Non-GAAP. See reconciliation tables in appendix Operating Margin 17.2%-17.8% 17.2%-17.8% (2) Non-GAAP 3. Constant currency. Assumes exchange rates in the current period were Effective Tax Rate unchanged from the prior period 13.0%-17.0% 13.0%-17.0% (2) Non-GAAP (2) Free cash flow $500 million $500 million (2) Normalized free cash flow $650 million $650 million Information Security Level 0– Public© 2022 – Proprietary & Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 22 22 Confidential Information of Amdocs

Appendix Reconciliation Tables Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 23 23

AMDOCS LIMITED Selected Financial Metrics (In thousands, except per share data) Three months ended Six months ended March 31, March 31, (a) 2022 2021 2022 2021 Revenue $ 1,145,271 $ 1,048,734 $ 2,249,903 $ 2,135,077 Non-GAAP operating income 201,625 184,883 395,232 372,864 Non-GAAP net income 190,944 148,095 341,079 301,067 Non-GAAP diluted earnings per share $ 1.54 $ 1.13 $ 2.74 $ 2.30 Diluted weighted average number of shares outstanding 123,821 130,696 124,571 131,147 Free Cash Flows and Normalized Free Cash Flow (In thousands) Three months ended Six months ended March 31, March 31, (a) 2022 2021 2022 2021 Net Cash Provided by Operating Activities $ 168,856 $ 119,736 $ 372,974 $ 536,221 Purchases of property and (c) (47,271) (49,245) (104,496) (99,310) equipment, net Free Cash Flow 121,585 70,491 268,478 436,911 a) Since January 1, 2021, OpenMarket results are not included in the Consolidated Statements of Income given its divestiture. b) Tax payment related to capital gain from divesture of OpenMarket, (b) Tax payment on sale of business 3,193 25,190 3,193 25,190 which was completed on December 31, 2020. c) The amounts under Purchase of property and equipment, net” include proceeds from sale of property and equipment of $555 and Payments of acquisition related $136 for the six months ended March 31, 2022 and 2021, respectively. liabilities 4,871 13,234 14,350 13,234 Net capital expenditures related to the new campus development 30,109 24,221 59,416 42,555 Normalized Free Cash Flow $ 159,758 $ 133,136 $ 345,437 $ 517,890 Information Security Level 0– Public© 2022 – Proprietary & Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 24 24 Confidential Information of Amdocs

AMDOCS LIMITED Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP (In thousands) Three months ended March 31, 2022 Reconciliation items GAAP Amortization Equity based Changes in Non-GAAP Other Tax of purchased compensation certain effect intangible expense acquisitions assets and related liabilities other measured at fair value Operating expenses: Cost of revenue $ 741,257 $ - $ (8,070) $ (1,820) $ - $ - $ 731,367 Research and development 87,064 - (1,375) - - - 85,689 Selling, general and administrative 134,982 - (8,392) - - - 126,590 Amortization of purchased intangible assets and other 18,317 (18,317) - - - - - Total operating expenses 981,620 (18,317) (17,837) (1,820) - - 943,646 Operating income 163,651 18,317 17,837 1,820 - - 201,625 Interest and other expense, net (8,619) - - - 1,100 - (7,519) Income tax (benefit) expense (3,465) - - - - 6,627 3,162 Net income $ 158,497 $ 18,317 $ 17,837 $ 1,820 $ 1,100 $ (6,627) $ 190,944 Three months ended March 31, 2021 Reconciliation items GAAP Amortization Equity based Changes in Non-GAAP Other Tax of purchased compensation certain effect intangible expense acquisitions assets and related liabilities other measured at fair value Operating expenses: Cost of revenue $ 685,515 $ - $ (5,582) $ (394) $ - $ - $ 679,539 Research and a) Since January 1, 2021, OpenMarket results are not included in the development 75,154 - (1,012) - - - 74,142 Selling, general and Consolidated Statements of Income given its divestiture. administrative 116,951 - (6,781) - - - 110,170 b) Tax payment related to capital gain from divesture of OpenMarket, Amortization of purchased intangible which was completed on December 31, 2020. assets and other 21,870 (21,870) - - - - - c) The amounts under Purchase of property and equipment, net” Total operating expenses 899,490 (21,870) (13,375) (394) - - 863,851 include proceeds from sale of property and equipment of $555 and $136 for the six months ended March 31, 2022 and 2021, respectively. Operating income 149,244 21,870 13,375 394 - - 184,883 Interest and other expense, net (3,542) - - - (375) - (3,917) Income tax (benefit) expense 26,635 - - - - 6,236 32,871 Net income $ 119,067 $ 21,870 $ 13,375 $ 394 $ (375) $ (6,236) $ 148,095 Information Security Level 0– Public© 2022 – Proprietary & Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 25 25 Confidential Information of Amdocs

AMDOCS LIMITED Reconciliation of Selected Financial Metrics from GAAP to Non-GAAP (In thousands) Six months ended March 31, 2022 Reconciliation items GAAP Amortization Equity based Changes in certain Non-GAAP Gain from Other Tax of compensation acquisitions related sale of a effect purchased expense liabilities measured business intangible at fair value assets and other Operating expenses: Cost of revenue $ 1,457,975 $ - $ (15,217) $ (793) $ - $ - $ - $ 1,441,965 Research and development 169,009 - (2,598) - - - - 166,411 Selling, general and 263,058 - (16,763) - - - - 246,295 administrative Amortization of purchased intangible 36,064 (36,064) - - - - - - assets and other Total operating 1,926,106 (36,064) (34,578) (793) - - - 1,854,671 expenses Operating income 323,797 36,064 34,578 793 - - - 395,232 Interest and other (11,181) - - - - (2,505) - (13,686) expense, net Gain from sale of a 10,000 - - - (10,000) - - - business Income tax (benefit) 30,517 - - - - - 9,950 40,467 expense Net income $ 292,099 $ 36,064 $ 34,578 $ 793 $ (10,000) $ (2,505) $ (9,950) $ 341,079 Six months ended (a) March 31, 2021 Reconciliation items GAAP Amortization Equity based Changes in certain Non-GAAP Gain from Other Tax of compensation acquisitions related sale of a effect purchased expense liabilities measured business intangible at fair value assets and other Operating expenses: Cost of revenue $ 1,414,231 $ - $ (10,523) $ (15,728) $ - $ - $ - $ 1,387,980 Research and 150,823 - (1,844) - - - - 148,979 development Selling, general and 238,839 - (13,585) - - - - 225,254 administrative Amortization of a) Since January 1, 2021, OpenMarket results are not included in the purchased intangible 41,740 (41,740) - - - - - - Consolidated Statements of Income given its divestiture. assets and other Total operating b) Tax payment related to capital gain from divesture of OpenMarket, 1,845,633 (41,740) (25,952) (15,728) - - - 1,762,213 expenses which was completed on December 31, 2020. Operating income 289,444 41,740 25,952 15,728 - - - 372,864 c) The amounts under Purchase of property and equipment, net” include proceeds from sale of property and equipment of $555 and Interest and other (10,032) - - - - 824 - (9,208) expense, net $136 for the six months ended March 31, 2022 and 2021, respectively. Gain from sale of a 226,410 - - - (226,410) - - - business Income tax (benefit) 87,123 - - - - - (24,534) 62,589 expense Net income $ 418,699 $ 41,740 $ 25,952 $ 15,728 $ (226,410) $ 824 $ 24,534 $ 301,067 Information Security Level 0– Public© 2022 – Proprietary & Information Security Level 0 – Public. © 2022 – Proprietary & Confidential Information of Amdocs 26 26 Confidential Information of Amdocs