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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the
Month of: November 2021
Commission
File Number: 001-38187
MICRO FOCUS INTERNATIONAL PLC
(Exact name of registrant as specified in its charter)
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The Lawn, 22-30 Old Bath Road
Newbury, Berkshire
RG14 1QN
United Kingdom
+44 (0) 1635-565-459
(Address of principal executive office)
Indicate
by check mark whether this registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form
20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule
101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule
101(b)(7): ☐
CONTENTS
Exhibit No.
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Exhibit Description
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99.1
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Strategy
Update, dated 30 November 2021
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30
November 2021
Micro
Focus International plc
Strategy Update
Micro Focus International plc ("Micro Focus" or "the Group", LSE:
MCRO.L, NYSE: MFGP), the global enterprise software group, is
holding a Strategy Update briefing later today for analysts and
investors. The event will be hosted by Greg Lock (Chairman),
Stephen Murdoch (CEO) and Matt Ashley (CFO). Micro Focus will give
an update on progress with its turnaround initiatives as well as
provide greater detail on its strategic priorities and financial
goals. The briefing will focus on the following areas:
● progress made in the transformation to
date;
● the significant market opportunities and specific
areas of focus for the Group;
● reshaping the company to deliver efficiencies and
provide strategic flexibility;
● core financial objectives for the Group to the end
of FY23, and longer-term ambition;
● capital structure priorities and the longer-term
investment thesis.
There will be no update on current trading, nor any material new
information not contained in this document.
Stephen Murdoch, Chief Executive Officer, said:
"Today we are sharing the progress of our transformation and
setting out our plan to exit FY23 with a flat or better
year-on-year revenue trajectory. Following the successful
implementation of the Enterprise-wide platform in H2 2021 we are
now able to unlock substantial cost efficiencies, a key step on our
path to generating $500m Adjusted Free Cash Flow annually by the
end of FY23.
Having now completed the HPE integration we can once again focus on
our core objectives that we know deliver success: for customers -
our commitment to delivering the innovation they need in the way
they want to consume it over the long-term; for employees -
creating a rewarding and inclusive environment so they can do their
best work, grow, and develop; and for shareholders - consistent
returns built on sustainable foundations of FCF and efficient
capital allocation."
Overview
Micro Focus is at an inflection point in its transformation
journey; during the presentation Stephen and Matt will provide
updates on:
● Improved
Product Position: Micro
Focus has, and continues to, reposition the portfolio to be better
focused on growth opportunities, and is revitalising its
customer-centric approach, ensuring that the innovation delivered
is fully exploited by its customers. Where re-positioning is
complete, Micro Focus is already executing well; and where work
continues, actions are progressing as planned.
● Restructured
the Go-To-Market organisation: to prioritise and align resources with
greater specialist skillsets and consistency of execution to
deliver great customer experience and our financial goals. There
continues to be an evolution of the business model to be product
portfolio centric to deliver better customer engagement and
alignment from product strategy to sales. The extension of this
approach builds on the progress delivered to date in Cyber
Resilience (Security) and Vertica.
● One
single Enterprise-wide platform: having now successfully closed two quarters,
including Q4 (the Group's busiest trading period) on the new
platform, the integration of HPE is now materially complete.
Therefore, there will be no further Exceptional Costs beyond FY21
relating to this integration. The single platform and standardised
global processes have already enabled Micro Focus to start to
simplify the organisation and identify significant opportunities
for efficiency and productivity improvements.
Matt Ashley, Chief Financial Officer, said:
" We have robust, granular plans for the next 2 years that give us
confidence to achieve our core financial objectives as we exit
FY23, and a strong foundation from which to execute thereafter."
● Core
Financial Objectives:
o A
flat or better year-on-year revenue trajectory as we exit FY23,
from provisional (5%) revenue decline in FY21.
o Removing
$400-500m of gross annual recurring cost to achieve a
reduction from the FY21 exit cost base of c. $1.9bn to c.
$1.5-1.6bn (allowing for cost inflation) by the end of FY23,
requiring Exceptional spend of c. $200m to deliver the
savings.
o Equity
FCF run rate of $500m by the end of FY23.
o Medium
term revenue growth target of 1-2%, with AMC, Cyber Resilience,
IM&G all growing in the low-to-mid single digit percentages,
and ITOM and ADM achieving low single digit declines or
better.
● Capital
Structure: The Group has
multiple paths to value creation and reiterates its commitment to
paying a 5x covered dividend and reduce leverage from 4x to 3x over
the medium term.
Investor and analyst meeting
Micro Focus will host a webcast for investors and analysts today at
1pm GMT / 8am ET followed by a live Q&A session. A live webcast
and recording of the presentation will be available
at https://www.microfocus.com/en-us/investors during
and after the event.
Access numbers for the live Q&A session:
UK & International:
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+44 (0) 33 0551 0200
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UK Toll Free:
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0808 109 0700
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US:
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+1 212 999 6659
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US Toll Free:
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1 866 966 5335
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Enquiries:
Micro
Focus
Tel: +44 (0)1635 32646
Stephen
Murdoch, CEO
Investors@microfocus.com
Matt
Ashley, CFO
Ben
Donnelly, Head of Investor Relations
Brunswick
Tel: +44 (0) 20 7404 5959
Sarah
West MicroFocus@brunswickgroup.com
Jonathan
Glass
Notes
to Editors:
About
Micro Focus
Micro
Focus (LSE: MCRO.L, NYSE: MFGP) is a global enterprise software
company supporting the technology needs and challenges of the
Global 2000. Our solutions help organizations leverage
existing IT investments, enterprise applications and emerging
technologies to address complex, rapidly evolving business
requirements while protecting corporate information at all times.
Our product portfolios are Security, IT Operations Management,
Application Delivery Management, Information Management &
Governance and Application Modernization & Connectivity. For
more information, visit: www.microfocus.com
LEI: 213800F8E4X648142844
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf
by the undersigned, thereto duly authorized.
Date:
30 November 2021
Micro
Focus International plc
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By:
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/s/
Matt Ashley
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Name:
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Matt
Ashley
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Title:
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Chief
Financial Officer
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