# Adobe 2019 Financial Analyst Slides (11/4/2019)

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- Last updated: 2022-10-02
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## Page 1

Adobe Financial Analyst Meeting
November4, 2019
© 2019 Adobe. All Rights Reserved.

## Page 2

Welcome
Mike Saviage | VP Investor Relations
November 4, 2019
© 2019 Adobe. All Rights Reserved.

## Page 3

Agenda
Vision & Strategy Shantanu Narayen
Growth Strategy Gloria Chen
Digital Media Opportunity Shantanu Narayen
Digital Experience Opportunity Shantanu Narayen
Technology Vision Abhay Parasnis
Executing On Our Growth Strategy John Murphy
Q&A
© 2019 Adobe. All Rights Reserved.

## Page 4

Financial Disclaimer
Some of the information discussed in this presentation contains forward-looking statements
that involve risk and uncertainty. Actual results may differ materially from those set forth in
such statements. For a discussion of the risks and uncertainties, you should review Adobe’s
SEC filings, including the annual report on Form 10-K for fiscal year 2018 and the quarterly
reports on Form 10-Q filed by the company in 2019. In our presentation, we may discuss non-
GAAP financial measures. The GAAP financial measures that correspond to such non-GAAP
measures, as well as the reconciliation between the two, are available on our website at
http://www.adobe.com/ADBE.
Adobe does not undertake an obligation to update forward-looking statements.
© 2019 Adobe. All Rights Reserved.

## Page 5

Vision & Strategy
Shantanu Narayen | President & CEO
November 4, 2019
© 2019 Adobe. All Rights Reserved.

## Page 6

© 2019 Adobe. All Rights Reserved.

## Page 7

2019 Highlights
© 2019 Adobe. All Rights Reserved.

## Page 8

Macro Trends
It’s the Golden Age of Design & Creativity Digital Transformation Leads the C-Suite Agenda
Paper-to-Digital Automation Content Fuels the Digital Economy
Digital Engagement Across Every Touch Point AI & Machine Learning Redefining Software
Mobile & Cloud Drive Modern Productivity Privacy & Security a Mandate to Earn Trust
© 2019 Adobe. All Rights Reserved.

## Page 9

Unleashing Accelerating Powering
© 2019 Adobe. All Rights Reserved.

## Page 10

Creative Cloud: Unleashing Creativity
Creating & leading categories
with multi-surface systems
Expanding universe of users
Innovative services fueling new market
opportunities
Data-driven customer insights driving
ARR growth
© 2019 Adobe. All Rights Reserved.

## Page 11

Document Cloud: Accelerating Document Productivity
PDF is the de-facto electronic document format
Reader ubiquity on desktop, mobile & web
Acrobat on all surfaces to deliver "document verb"
capabilities
Embedding PDF across cloud & apps through
document services
New customer acquisition, web & mobile offerings
& migration to subscription driving unit & ARR growth
© 2019 Adobe. All Rights Reserved.

## Page 12

Experience Cloud: Powering Digital Businesses
Decade of leadership in Digital Marketing category
Integrated suite designed to manage digital customer
journeys across B2C, B2B, enterprise & midmarket
Introduced generational innovation through new
product & Experience Platform delivery in 2019
Content, data & Sensei services unique differentiators
Positioned to lead in explosive CXM category & drive
subscription revenue growth
© 2019 Adobe. All Rights Reserved.

## Page 13

Adobe’s Growth Advantage
2022 Total Addressable Market
Category Creation Loyal & Growing Innovative Globally Unique
& Expansion Customer Universe Technology Platforms Admired Brand Financial Profile
Source: Adobe, November 2019
© 2019 Adobe. All Rights Reserved.

## Page 14

Adobe’s Growth Strategy
Gloria Chen | SVP of Strategy & Growth
November 4, 2019
© 2019 Adobe. All Rights Reserved.

## Page 15

Adobe’s Growth Advantage
2022 Total Addressable Market
Category Creation Loyal & Growing Innovative Globally Unique
& Expansion Customer Universe Technology Platforms Admired Brand Financial Profile
Source: Adobe, November 2019
© 2019 Adobe. All Rights Reserved.

## Page 16

Strategic Growth Vectors
Growing Customer Universe
Driving engagement from
consumers to the world’s largest companies
Core
Assets
Customers
Technology
Category Creation Brand Apps + Services
& Expansion + Platforms
Innovating in creativity, documents Expanding offerings
& customer experience management & monetization opportunities
© 2019 Adobe. All Rights Reserved.

## Page 17

Creativity is for Everyone Creativity is Everywhere Creativity is Big Business
© 2019 Adobe. All Rights Reserved.

## Page 18

Creative Cloud Strategy
Empower Push Category & Accelerate Individual Put Adobe Magic Inspire
All Voices Technology Boundaries & Team Productivity to Work the Community
© 2019 Adobe. All Rights Reserved.

## Page 19

Sizing the Creative Cloud Addressable Market
2021 TAM 2022 TAM
Methodology focused on the Methodology aligned to the
migration from Creative Suite expanding universe of users
to Creative Cloud we target
Core Creative Pros
Market Expansion Communicators
Value Expansion Consumers
© 2019 Adobe. All Rights Reserved.

## Page 20

Creative Professional Market Opportunity
Total Potential Users in 2022 • Exploding job market for
~10M Creatives
Students in Creative Majors • Multi-surface systems
• Emerging categories including
~35M screen design, 3D & AR
Creative Pros • Growing portfolio of services
Freelance, Agencies, SMB, Enterprise • Remaining migration & non-
genuine conversion
• Global market expansion
Source: Adobe, International Labor Organization; U.S Bureau of Labor Statistics; Business Software Alliance
© 2019 Adobe. All Rights Reserved.

## Page 21

Expanding Customer Universe
Total Potential Users in 2022
~4B Communicators
Consumers • Creative beyond productivity apps
Hobbyists, Enthusiasts,K-12,
Social Media Users • Template-driven design
• Collaboration & content workflow
~700M Consumers
Communicators • Apps for photo & video
Students, Marketers,
Knowledge Workers, Businesses • Mobile-only offerings
Building on >200M Adobe IDs
~45M created to date to access CC mobile
Creative Pros apps
Source: Adobe, International Labor Organization; U.S Bureau of Labor Statistics; Business Software Alliance
© 2019 Adobe. All Rights Reserved.

## Page 22

2022 Creative Cloud Total Addressable Market
2022 Creative Cloud TAM
~$31B
~$15B ~$12B ~$4B
2021 Creative Cloud TAM Creative Professionals Communicators Consumers
• Creative job growth • Creative content beyond • Apps for photo & video
• Multi-surface systems productivity apps • Mobile only offerings
• New media categories • Template-driven design
~$29B • Services • Collaboration & content
workflow
Source: Adobe, November 2019
© 2019 Adobe. All Rights Reserved.

## Page 23

Paper-to-Digital Cloud & Mobile Document Services Role
Transformation Continues Reshaping Productivity in the API Economy
© 2019 Adobe. All Rights Reserved.

## Page 24

Adobe Document Cloud Strategy
Deliver Best PDF Expand Make PDF Unlock Value Unleash PDF
Viewing Experience Document Frictionless for of PDF Ecosystem with
Everywhere Verbs in Acrobat Mobile & Web via Sensei Document Services
© 2019 Adobe. All Rights Reserved.

## Page 25

Sizing the Document Cloud Addressable Market
2021 TAM 2022 TAM
Methodology Methodology aligned to
consistent with expanding Acrobat users
Creative Cloud and new categories of services
Core Acrobat Applications
Market Expansion Document Services Platform
Value Expansion
© 2019 Adobe. All Rights Reserved.

## Page 26

Acrobat: Activating PDF Verbs Across a Broader Universe of Users
~2B Acrobat
Reader & Acrobat Users • Document verbs beyond
viewing
• Enterprise & global market
expansion
• Migration to subscription
~700M PDF Mobile & Web
Communicators
• Cloud & mobile productivity
~75M • Frictionless PDF services on
Advanced Users Adobe.com
Source: Adobe, International Labor Organization; U.S Bureau of Labor Statistics; Business Software Alliance
© 2019 Adobe. All Rights Reserved.

## Page 27

Embedded Document Services: Expanding PDF Beyond Acrobat
Trillions
of PDFs created every year
• eSignatures & workflows
• Embedded PDF-as-a-Service
• Document intelligence
~2B
Reader & Acrobat Users
Source: Adobe, International Labor Organization; U.S Bureau of Labor Statistics; Business Software Alliance
© 2019 Adobe. All Rights Reserved.

## Page 28

2022 Document Cloud Total Addressable Market
2022 Document Cloud TAM
~$13B
~$7B ~$6B
Acrobat Applications Document Services Platform
2021 Document Cloud TAM • PDF category growth • eSignatures
• Expansion of Acrobat verbs • Embedded PDF-as-a-Service
• Migration of perpetual users • Document intelligence
~$7.5B to subscriptions services
• New mobile products
Source: Adobe, November 2019 • Frictionless web experiences
© 2019 Adobe. All Rights Reserved.

## Page 29

People Buy Experiences, B2B Companies Must CIOs Must Architect for
Not Products Deliver B2C Experiences Real-Time Action
© 2019 Adobe. All Rights Reserved.

## Page 30

Adobe Experience Cloud Strategy
Build on Affinity Extend CXM Expand to CIO with Scale in Evangelize DDOM
with CMO to Drive From Adobe Experience Mid-Market as a Transformation
CXM Across C-Suite B2C to B2E Platform Segment Playbook
© 2019 Adobe. All Rights Reserved.

## Page 31

Sizing the Experience Cloud Addressable Market
Enterprise Software Categories Represented in TAM
Data & Insights Content & Customer Journey Commerce Advertising
Personalization Management
• Customer & business • Content & asset • Multi-channel campaign • eCommerce & • Demand-side platform
intelligence management management merchandising • Search engine
• Web & marketing • Digital forms & data • Lead management • Order management marketing
analytics capture • Email marketing • Product information • Dynamic creative
• Data management • Personalization & • Account-based management management
platform testing marketing
• Customer data platform • Multi-screen TV
• Data lakes platform
• Identity resolution
• Data connectors
© 2019 Adobe. All Rights Reserved.

## Page 32

2022 Experience Cloud Total Addressable Market
2022 Experience Cloud TAM
~$84B
2021 Experience Cloud TAM ~$23B ~$28B ~$13B ~$10B ~$10B
Data & Content & Customer Journey Commerce Advertising
~$71B Insights Personalization Management
Source: IDC and Adobe, November 2019
© 2019 Adobe. All Rights Reserved.

## Page 33

Adobe’s Growth Advantage
2022 Total Addressable Market
Category Creation Loyal & Growing Innovative Globally Unique
& Expansion Customer Universe Technology Platforms Admired Brand Financial Profile
Source: Adobe, November 2019
© 2019 Adobe. All Rights Reserved.

## Page 34

Adobe's Digital Media Opportunity
Shantanu Narayen | President & CEO
November 4, 2019
© 2019 Adobe. All Rights Reserved.

## Page 35

Adobe’s Digital Media Business
Unleashing Accelerating
© 2019 Adobe. All Rights Reserved.

## Page 36

Digital Media Customers
Freelancers · Small Businesses · Agencies · Education · Enterprises · Governments · ISVs
© 2019 Adobe. All Rights Reserved.

## Page 37

Digital Media Innovation Engine
2019
Scan Magic Clean
2018 Photoshop on iPad
Photoshop Camera
2017 Adobe Premiere Rush Fresco on iPad & Surface
Adobe XD with Voice triggers Co-editing in XD
Adobe XD Adobe XD integration with Ae and Ai CC Desktop app
2016 Lightroom CC Adobe Live on Behance Acrobat Web
Essential Graphics Panel in Ae Motion Graphic Templates
Adobe Sensei New Search for Stock in Photoshop Adobe Stock Premium Content Design Systems
Creative Cloud Libraries Video Collaboration Illustrator with new Properties Panel Collaboration
Adobe Stock Mixamo Photoshop Content Aware Fill reimagined PDF Services Online
Adobe Portfolio Photoshop Express Adobe Dimension Substance
Character Animator Adobe Spark Adobe Fonts Aero
CC Learn Adobe Scan Lightroom Search InDesign Asset Link
© 2019 Adobe. All Rights Reserved.

## Page 38

Digital Media Business Momentum
Digital Media Annualized Recurring Revenue (ARR)
$10B
~$8.3B
$8B
$6B
$4B
$2B
$0B
Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19E
Creative Cloud ARR Document Cloud ARR
Source: Adobe, Q4FY19E includes targeted net new ARR
© 2019 Adobe. All Rights Reserved.

## Page 39

Creative Cloud
© 2019 Adobe. All Rights Reserved.

## Page 40

Creativity is For Everyone Creativity is Everywhere Creativity is Big Business
© 2019 Adobe. All Rights Reserved.

## Page 41

Adobe XD Photoshop on iPad Fresco on Windows Aero on iOS Illustrator on iPad Photoshop Camera
© 2019 Adobe. All Rights Reserved.

## Page 42

Creative Cloud Business Momentum
>50% >90% >15%
Cumulative new subscribers Enterprise seats Y/Y seat growth
to Creative Cloud franchise with services in Enterprise
>40% ~18M >200M
Y/Y revenue growth Behance Mobile IDs
for Adobe Stock members created
~100% >5M >23M
Y/Y growth in Adobe XD Students with
mobile units downloads Adobe Spark
Source: Adobe, as of Q3 FY2019
© 2019 Adobe. All Rights Reserved.

## Page 43

Creative Cloud Strategy
Empower Push Category & Accelerate Individual Put Adobe Magic Inspire
All Voices Technology & Team Productivity to Work the Community
Boundaries
© 2019 Adobe. All Rights Reserved.

## Page 44

Creative Cloud Product Strategy
Drive Extend Accelerate Expand to Embrace
Customer Category Individual & Team Communicators New Media
Engagement Leadership Productivity & Consumers Types
© 2019 Adobe. All Rights Reserved.

## Page 45

Accelerating Creative Cloud Innovation
Photoshop on iPad · Photoshop Camera · Adobe Spark · Adobe XD co-editing · Alexa “Adobe Inspiration Engine”
Photoshop Express · Fresco Live Brushes · 17k Adobe Fonts · Dimension Match Image · CC Desktop & Web
Fresco on Windows · Lightroom integrated community · Aero for Augmented Reality · CC Libraries in 3rd Parties
Dimension Multiple Lighting · Premiere Pro Auto Reframe · After Effects Content Aware Fill · Lightroom Texture Controls
Substance Product Line · First Mile in Apps · Photoshop Object Selection · Stock: 130 million assets & 750k premium images
Illustrator on iPad · Live Streaming in Fresco · CC Libraries at scale · Premiere Rush on Android
© 2019 Adobe. All Rights Reserved.

## Page 46

Customer Engagement
First Mile Creative Cloud In-App Learning Community
Web & Desktop
© 2019 Adobe. All Rights Reserved.

## Page 47

Category Leadership
Creative Imaging Video Graphic Design, Web UX Immersive
& Photography & Illustration
Photoshop Photoshop on iPad Premiere Pro Photoshop Photoshop Illustrator XD Aero
Photoshop Photoshop Premiere Rush After Effects InDesign Spark Photoshop Dimension
Express Camera
Lightroom Lightroom Character Animate Fresco Bridge Illustrator Substance
Mobile Animator
Audition Illustrator Dreamweaver Acrobat After Effects
© 2019 Adobe. All Rights Reserved.

## Page 48

Accelerating Individual & Team Productivity
Creative Cloud Libraries Cloud Documents Collaboration Services For Content
& Co-Editing & Community
© 2019 Adobe. All Rights Reserved.

## Page 49

Expanding to Communicators & Consumers
Visual Storytelling New Photo & Video Mobile Offerings
© 2019 Adobe. All Rights Reserved.

## Page 50

Embracing New Media Types
Using 3D for 2D Design New Class of Immersive Experiences
Marketing Entertainment Interactive Experiences
© 2019 Adobe. All Rights Reserved.

## Page 51

Creative Cloud
SERVICES APPS PLATFORM
CONTENT COMMUNITY CREATIVE IMAGING VIDEO GRAPHIC DESIGN, WEB UX IMMERSIVE Adobe Sensei
Fonts Behance & PHOTOGRAPHY & ILLUSTRATION Creative Intelligence
Stock Adobe Live
Portfolio Training Adobe Creative Platform
(Cloud Docs, APIs, Extensibility)
TEAMS
Co-Edit Collaboration
CC Libraries
Design Systems
© 2019 Adobe. All Rights Reserved.

## Page 52

Creative Cloud Growth Drivers
~$31B
2022 Creative Cloud TAM
Growth in new creative jobs · K12 & higher ed student adoption · New media types 3D & AR
SMB & enterprise seat expansion · Stock content · Global expansion · Collaboration
Social media marketers · Photography & imaging enthusiasts · YouTubers & video enthusiasts
Anti-piracy · Free-to-paid · Mobile offerings · Partnerships · Learn & training
CS migration to subscriptions · Elements migration to subscriptions · Lightroom migration to subscriptions
Source: Adobe, November 2019
© 2019 Adobe. All Rights Reserved.

## Page 53

Adobe Document Cloud
© 2019 Adobe. All Rights Reserved.

## Page 54

Paper-to-Digital Cloud & Mobile Document Services Role
Transformation Continues Reshaping Productivity in the API Economy
© 2019 Adobe. All Rights Reserved.

## Page 55

Adobe Document Cloud Business Momentum
~2B >100M ~130%
Mobile + Desktop devices with Mobile IDs created Y/Y growth in scans
Reader or Acrobat installed in past 2 years uploaded to
Document Cloud
>20% >40% >60%
Acrobat Y/Y unit growth for Of subscribers are new to Channel units are
1 Acrobat franchise subscriptions2
3consecutive years
>70% >400%
Enterprise book of Y/Y growth of Adobe Sign
business that has transactions in Acrobat
Source: Adobe, as of Q3FY19 purchased services
1
Across Creative Cloud and Adobe Document Cloud, Q2FY17 through Q3FY19
2 Subscription units as a percentage of total units licensed through reseller channel including perpetually licensed units
© 2019 Adobe. All Rights Reserved.

## Page 56

Adobe Document Cloud Strategy
Deliver Best PDF Viewing Expand Document Make PDF Frictionless Unlock Value of Unleash PDF Ecosystem
Experience Everywhere Verbs in Acrobat for Mobile & Web PDF with Sensei with Document Services
© 2019 Adobe. All Rights Reserved.

## Page 57

Document Verb Capabilities in Acrobat
View . Create . Sign . Scan . Share . Edit . Review . Extract . Embed
© 2019 Adobe. All Rights Reserved.

## Page 58

Deliver PDF Services for Mobile & Web
• Launched Create, Compress
& Convert as services on
Adobe.com
• Enabled PDF editing in Acrobat
mobile
• Extended Scan leadership with
Adobe Sensei
• Introduced paid funnel for
Acrobat mobile
© 2019 Adobe. All Rights Reserved.

## Page 59

Unlock Value of PDF with Sensei
• Started global rollout of
responsive mobile PDF
viewing with Liquid Mode
• Introduced full text search for
files stored in Document
Cloud
• Extended Adobe Scan
leadership with boundary
detection, auto-clean
& shadow removal
• Improved user experience for
form-filling in Acrobat & Sign
by automatically recognizing
form fields
© 2019 Adobe. All Rights Reserved.

## Page 60

Unleash PDF Ecosystem with Document Services
• Launched beta of
embeddable PDF viewing
using Acrobat.js
• Launched beta of PDF
services developer APIs
via Adobe.io
© 2019 Adobe. All Rights Reserved.

## Page 61

DAdoocumbe Denotcu Clmouden:t CPlloatufodr Om fFfeorr inDgisgital Documents
SERVICES APPS EMBEDDED PDF AS-A-SERVICE
View ISVs, SIs, Enterprise & Developers
Create/Combine/Compress API Access to
Share & Review Embeddable Acrobat
Acrobat DC Acrobat Reader Adobe Sign Viewer
Sign API Access to PDF
Scan Services & Adobe Sign
Edit/Organize Acrobat Mobile Adobe Scan
Protect
Redact
© 2019 Adobe. All Rights Reserved.

## Page 62

Adobe Document Cloud Growth Drivers
~$13B
2022 Document Cloud TAM
Verbs: Create, Sign, Edit, Share, Compress · Reader upsell to Acrobat · Acrobat migration to subscriptions
Acrobat mobile & Scan users · PDF category growth & transformation · SMB & enterprise seat expansion
International growth · Anti-piracy · Acrobat web offerings · Partnerships
API access to embedded PDF services: Create, Sign, Edit, Share, Compress · Product line optimization
Free to paid conversion · Document intelligence · Growth in knowledge worker jobs
Source: Adobe, November 2019
© 2019 Adobe. All Rights Reserved.

## Page 63

Scaling Our Digital Media Franchise
DDOM Goes Mainstream
DISCOVER TRY BUY USE RENEW
• Frictionless journeys • Cross-device experience • Mobile & web offerings • Creative Cloud • Upsell/cross-sell
• SEO • Trial with payment • Multi-year offerings Desktop • Seat expansion
• Engagement marketing • Channel auto-renewal
• Customer success
& training
© 2019 Adobe. All Rights Reserved.

## Page 64

Digital Media Summary
~$44B TAM across Creative Cloud and Document Cloud
Category leadership extending into adjacent market opportunities
and new media types
Expanding customer universe with multi-surface creative apps
Explosive opportunity with Acrobat verbs, Reader ubiquity,
and PDF services
Unprecedented product innovation and Adobe Sensei magic
Data-driven insights across large, established GTM powering
ARR growth
Source: Adobe, November 2019
© 2019 Adobe. All Rights Reserved.

## Page 65

Adobe's Digital Experience Opportunity
Shantanu Narayen | President & CEO
November 4, 2019
© 2019 Adobe. All Rights Reserved.

## Page 66

Powering
© 2019 Adobe. All Rights Reserved.

## Page 67

People Buy Experiences, B2B Companies Must CIOs Must Architect for
Not Products Deliver B2C Experiences Real-Time Action
© 2019 Adobe. All Rights Reserved.

## Page 68

Adobe Experience Cloud Momentum
Highlights Annual Revenue
2014 2019 $3.5B
$3.0B
~66% ~90% $2.5B
of top 100 of top 100 $2.0B
customers have customers have $1.5B
3+ products 3+ products $1.0B
~$3M ~$6M $0.5B
$0.0B
Average ARR Average ARR
of top 100 customers of top 100 customers
Source: Adobe; FY2019E reflects FY2019 YTD results and Q4FY19 financial targets
© 2019 Adobe. All Rights Reserved.

## Page 69

Adobe Experience Cloud Momentum
Product Ecosystem Business Value
~15B ~67K ~25%
Web pages served Solution Increase in web
per day ~3.3B partners ~1.6K & mobile conversions ~40%
Offers delivered ISV partners Reduction in contact
~14T per day ~350K ~242% center volume
Segment activations Magento ROI
per day ~3.5M developers ~6.2K ~7
Ad opportunities Marketplace apps Month payback
~1T per second ~550K and listings ~14% period
Marketo B2B marketing Visitors to Experience Improvement
activities per year League Community in NPS
Source: Adobe, November 2019, Forrester, December 2018
© 2019 Adobe. All Rights Reserved.

## Page 70

Adobe Experience Cloud: Mission Critical Across Industries
Retail Travel & Hospitality
Media & Entertainment Financial Services
High Tech Manufacturing
Telecom Education Healthcare/Life Science Public Sector
© 2019 Adobe. All Rights Reserved.

## Page 71

Adobe Experience Cloud: A Decade of Leadership
Addressing the Broader
Customer Experience
Management Opportunity
Building the Comprehensive B2E | Enterprise + Mid-Market | Platform + AI
Digital Marketing Suite
From Content Creation Advertising | Marketing | Analytics
to Content Lifecycle Applications
Make | Manage | Measure | Monetize
Sensei
Adobe Experience Platform
© 2019 Adobe. All Rights Reserved.

## Page 72

Digital Transformation: Enterprise Evolution
EXPERIENCE
BUSINESS WAVE
FRONT
OFFICE WAVE
BACK
OFFICE WAVE
© 2019 Adobe. All Rights Reserved.

## Page 73

Experience Business Imperatives
Know Who I Am Stitching Trillions
of Data Points
Bridging SaaS
Make Technology & On-Premise Islands
Transparent
Customer Domain
Privacy & Security Specialized AI Models
Consistent Experience From Batch Transactions
Across Surfaces to Real-Time Activation
© 2019 Adobe. All Rights Reserved.

## Page 74

Powering Experience Businesses Across the Customer Journey
DISCOVER TRY BUY USE RENEW
© 2019 Adobe. All Rights Reserved.

## Page 75

Adobe Experience Cloud Evolution: Applications + Services + Platform
Applications • Best of breed applications
• Integrated through Platform + Services
Services • Acceleration of functionality delivered through services
• Experience intelligence services
Platform • Adobe Experience Platform
• Adobe Sensei framework & tools
Multi-Cloud Infrastructure • Architected to run on heterogeneous environments
© 2019 Adobe. All Rights Reserved.

## Page 76

Adobe Experience Cloud Evolution: Applications + Services + Platform
Analytics Marketing Commerce Advertising
Cloud Cloud Cloud Cloud
Applications
Adobe Audience Experience Adobe Adobe Marketo Magento Advertising
Analytics Manager Manager Target Campaign Engage Commerce
Services Analysis Workspace Real-Time CDP Triggered Journeys Offer Management
Attribution.ai Customer.ai Journey.ai Leads.ai
Adobe Sensei
Platform Adobe Experience Platform
© 2019 Adobe. All Rights Reserved.

## Page 77

Adobe Experience Cloud Evolution: Applications + Services + Platform
REAL-TIME CUSTOMER CONTENT CUSTOMER JOURNEY
PROFILE & INSIGHTS & COMMERCE MANAGEMENT
Analytics Marketing Commerce Advertising
Applications Cloud Cloud Cloud Cloud
Adobe Audience Experience Adobe Adobe Marketo Magento Advertising
Analytics Manager Manager Target Campaign Engage Commerce
Services Analysis Workspace Real-Time CDP Triggered Journeys Offer Management
Attribution.ai Customer.ai Journey.ai Leads.ai
Adobe Sensei
Platform Adobe Experience Platform
© 2019 Adobe. All Rights Reserved.

## Page 78

REAL-TIME CUSTOMER
PROFILE & INSIGHTS
Adobe Experience Cloud: Real-Time Customer Profile & Insights
Adobe Experience Platform Unified Experiences
Architected for CXM Video/TV Desktop Mobile Social Web Email Kiosk IoT
Adobe Experience Platform
REAL-TIME CUSTOMER PROFILE
Customer Support CRM Inventory Mgmt. POS Store Operations ERP Custom Apps
Front Office | Back Office
© 2019 Adobe. All Rights Reserved.

## Page 79

REAL-TIME CUSTOMER
PROFILE & INSIGHTS
Adobe Experience Cloud: Real-Time Customer Profile & Insights
Adobe Analytics HIGHLIGHTS INNOVATION ROADMAP
Experience System of Intelligence for • Broad coverage of B2C omni-channel • Customer journey analytics
Cross-Channel Data, Insights & analytics • Query & analysis workspace
Activation • Internet scale behavioral dataset:
~13T data transactions per year • Sensei-powered services
• Enables real-time personalization via
integration with Target, Audience Manager
& Adobe Experience Platform
Adobe Audience Manager + HIGHLIGHTS INNOVATION ROADMAP
Real-Time Customer Data • Scale asset for audience creation & • Internet scale services to drive real-
Platform (CDP) delivery: time personalization
Insights & Activation for ~14T segment activations per day • Unified real-time edge across Adobe
Known & Unknown Audiences • Workflow integrated with Analytics, Experience Cloud
Target, Campaign, Advertising Cloud • Audience Manager & Real-Time
CDP integration
Source: Adobe, November 2019
© 2019 Adobe. All Rights Reserved.

## Page 80

CONTENT
& COMMERCE
Adobe Experience Cloud: Content & Commerce
Adobe Experience Manager HIGHLIGHTS INNOVATION ROADMAP
(AEM) + Target • Mission-critical category leader with AEM • Content as a SaaS service
Single Source of Truth to Deliver Sites; content velocity driving AEM Assets • Headless content management
Multi-channel Personalization at Scale • ~15B web pages served per day; ~3.3B offers
delivered per day • Content velocity & intelligence
• Together with Analytics, provides a digital
foundation for every business
Magento Commerce HIGHLIGHTS INNOVATION ROADMAP
Making Every Experience Shoppable • Scalable from mid-market to Enterprise • Deep integration with AEM
for B2C & B2B, Physical & Digital Goods across B2C & B2B • Extending reach through partnerships
• Open & vibrant ecosystem of ~350K with Amazon & Google
developers; ~5.4K apps • Mobile commerce with Progressive
Web Apps
Source: Adobe, November 2019
© 2019 Adobe. All Rights Reserved.

## Page 81

CUSTOMER JOURNEY
MANAGEMENT
Adobe Experience Cloud: Customer Journey Management
Adobe Campaign HIGHLIGHTS INNOVATION ROADMAP
Multi-Channel Campaign Orchestration • Deep affinity with B2C content & audience • Triggered Journeys to deliver
& Automation for B2C Journeys management & personalization personalized interactions across
• Largest customers scaling to 10-20B emails customer journeys
annually to a profile base of 25-100M • Intelligent Sensei services: Journey.ai,
Attribution.ai
Marketo Engage HIGHLIGHTS INNOVATION ROADMAP
Omni-Channel Marketing Automation • Mission critical tool for B2B marketers • Align B2B & B2C journey management
& Account-Based Marketing for • ~1T marketing activities/year • Account-based experience (ABX)
B2B Journeys
• >550 ecosystem partners • Extend individual and account
targeting with Linkedin Integration
Source: Adobe, November 2019
© 2019 Adobe. All Rights Reserved.

## Page 82

Adobe Experience Cloud: Advertising
Unified Advertising Platform HIGHLIGHTS INNOVATION ROADMAP
Brands & Agencies • Unify media silos for advertising across • Video ad planning, delivery &
Search, Display, Video & TV measurement for TV Everywhere
st across digital, OTT & linear
• 1 -party data activation from Analytics &
Audience Manager • Unique inventory access with
st
1 -party data match
© 2019 Adobe. All Rights Reserved.

## Page 83

Adobe Experience Cloud: Experience Intelligence
Attribution.ai Customer.ai Journey.ai Leads.ai
BUDGET AUDIENCE CONTRIBUTION
ALLOCATION TAGGING ANALYSIS
SENTIMENT AUTOMATED ANOMALY ATTRIBUTION
ANALYSIS INSIGHTS DETECTION
INTELLIGENT SUBJECT LINE VIDEO NEW LOOKALIKE INTELLIGENT
ALERTS OPTIMIZATION RECOMMENDATIONS MODELING AUDIENCE
SEGMENTATION
LANDING PROBABILISTIC EMAIL FREQUENCY
PAGE DEVICE CONTROL PREDICTING
OPTIMIZATION STITCHING CLICKS
ONE-CLICK PERSONALIZATION AUTO-TAGGING
PERSONALIZATION
© 2019 Adobe. All Rights Reserved.

## Page 84

Adobe Experience Cloud: Open Platform & Ecosystem
Experience Cloud
DEVELOPER SERVICES
Adobe I/O
INTELLIGENT SERVICES Adobe I/O Adobe Exchange Open Data Initiative
Adobe Sensei
PLATFORM
Adobe Experience Platform
INFRASTRUCTURE SERVICES
Multi-Cloud Foundation
© 2019 Adobe. All Rights Reserved.

## Page 85

Adobe Experience Cloud Growth Strategy
Build on Affinity Extend CXM Expand to CIO with Scale in Evangelize DDOM
with CMO to Drive From Adobe Experience Mid-Market as a Transformation
CXM Across C-Suite B2C to B2E Platform Segment Playbook
Verticals | Geographies | Partners
© 2019 Adobe. All Rights Reserved.

## Page 86

CXM Thought Leadership
© 2019 Adobe. All Rights Reserved.

## Page 87

Expand to CIO with Adobe Experience Platform
• Comprehensive, differentiated offering across
entire C-Suite
• Opens new line items in CIO budget
• Accelerates CMO adoption of Adobe
technology with support from CIOs and
ecosystem partners
• Enables enterprise-wide integration for
all Adobe Experience Cloud applications
• Delivers strong value proposition for developers
and data scientists
© 2019 Adobe. All Rights Reserved.

## Page 88

Extend Customer Experience Management to B2E
• B2B companies must deliver B2C experiences
• Creates new demand for entire Adobe Experience Cloud offering
• Standardization across single platform unlocks power of Business to Everyone (B2E)
B2B
UNLOCKING THE POWER OF B2E
END-TO-END LEAD TO REVENUE
B2C
© 2019 Adobe. All Rights Reserved.

## Page 89

Scale in Mid-Market Segment
• Expanded market opportunity for Adobe
Experience Cloud
• Anchored by momentum across Marketo
& Magento
• Drives focus on self-serve & time-to-value
• High-velocity Adobe.com & inside sales
motion
• Broad developer, partner & reseller
ecosystem
© 2019 Adobe. All Rights Reserved.

## Page 90

Evangelize DDOM as a Transformation Playbook
DISCOVER TRY BUY USE RENEW
© 2019 Adobe. All Rights Reserved.

## Page 91

Experience Cloud: Powering Digital Businesses
~$84B Digital Experience TAM
Decade of leadership in Digital Marketing category
Integrated suite designed to deliver entire customer journey
across B2C, B2B, enterprise & mid-market
Introduced generational innovation in new products
and platforms in 2019
Content, data & Sensei services are unique differentiators
in the industry
Robust ecosystem enables accelerated adoption and
seamless integration of Adobe’s platform
Positioned to lead in explosive CXM category
Source: Adobe, November 2019
© 2019 Adobe. All Rights Reserved.

## Page 92

Technology Vision
Abhay Parasnis | EVP & CTO
November 4, 2019
© 2019 Adobe. All Rights Reserved.

## Page 93

Unleashing Accelerating Powering
© 2019 Adobe. All Rights Reserved.

## Page 94

Unleashing Accelerating Powering
© 2019 Adobe. All Rights Reserved.

## Page 95

Unleashing Accelerating Powering
Applications
Services
Platform
© 2019 Adobe. All Rights Reserved.

## Page 96

Unleashing Accelerating Powering
Adobe Creative Cloud Adobe Document Cloud Adobe Experience Cloud
Applications
Adobe Stock Create/Combine/Compress Attribution.ai
Behance, Adobe Live Edit/Organize Customer.ai
Services Design Systems, CC Libraries Share & Review Leads.ai
Fonts, Training, Portfolio View Triggered Journeys
Co-Edit Collaboration Adobe Scan & Sign Analysis Workspace
… … …
Adobe Sensei
Platform
Content + Data
© 2019 Adobe. All Rights Reserved.

## Page 97

Unleashing Accelerating Powering
Multi-Cloud Experiences Sensei Intelligent Security & Operational
Platform Across Surfaces Services Compliance Excellence
~29B ~310M ~250B ~15B ~340M
Content Mobile apps PDFs opened Web pages Yearly active
platform assets downloaded last year served per day Adobe IDs
~6000 ~1600 ~2B ~35M ~14T ~13B
Cloud releases Multi-Cloud Mobile + Desktop devices Adobe Scan Segment activations Cloud API calls
per month services w/ Reader or Acrobat downloads per day per day
Source: Adobe, November 2019
© 2019 Adobe. All Rights Reserved.

## Page 98

Innovation Engine
Emerging Research Patents Talent
Products Breakthroughs
© 2019 Adobe. All Rights Reserved.

## Page 99

Escaping Real-Time
Reimagined Everywhere
© 2019 Adobe. All Rights Reserved.

## Page 100

Escaping
Imaging & Video Voice, Vision Real-Time The Future of Activating
Reimagined & Immersive Collaboration Documents Insights at Scale
© 2019 Adobe. All Rights Reserved.

## Page 101

Reimagined
Cloud-First Semantic Content Content True SaaS
Content Authoring Model & Services Intelligence Content Delivery
© 2019 Adobe. All Rights Reserved.

## Page 102

Real-Time
Data Ingestion & Semantic Model Experience Real-Time
Multi-Modal Data of Customer Profile Intelligence Edge Delivery
© 2019 Adobe. All Rights Reserved.

## Page 103

Adobe Experience Platform
Real-Time Edge Delivery
Experience Intelligence
Semantic Model
of Customer Profile
Data Ingestion/Multi-Modal Data
© 2019 Adobe. All Rights Reserved.

## Page 104

Adobe Experience Platform
Unified Experiences
Video/TV Desktop Mobile Social Web Email Kiosk IoT
Customer Support CRM Inventory Mgmt. POS Store Operations ERP Custom Apps
Data Ingestion/Multi-Modal Data
Front Office | Back Office
© 2019 Adobe. All Rights Reserved.

## Page 105

Adobe Experience Platform
Unified Experiences
Video/TV Desktop Mobile Social Web Email Kiosk IoT
DESKTOP ADOBE PRODUCTS
Desktop Open Creative Cloud Premiere Rush CC
Mobile Desktop App iOS
Login with Adobe ID Premiere Rush CC
DEVICES Single App Plan
Install Premiere Rush Creative Cloud
IDENTITIES Desktop
Premiere Rush CC
CUSTOMER PROFILE EXPERIENCE EVENTS
ECI UUID CRM EMAIL NAME: Sarah Rose
Semantic Model D ID EMAIL: s.g.rose@outlook.com MOBILE CROSS-CHANNEL
CUSTOMER
4647729… 46378701… YAuPQ1K… srose@ GENDER: Female CUSTOMER
outlook.com Sarah Rose Visit Adobe.com
of Customer Profile AGE: 33 PROFILE “Upgrade Premiere
COUNTRY: United States Scrolling on Instagram Rush”
MORE… Opened, Clicked
Install Premiere Rush CC
“Thank You for Renewing”
Followed Create Adobe ID Opened, Clicked
Guide SEGMENTATION App Guided Tour
Name Your Project
Add Media
Web Edit Sequence
Creator Social In-app Offer
Paid User Download Completed Purchase
Customer Support CRM Inventory Mgmt. POS Store Operations ERP Custom Apps
Front Office | Back Office
© 2019 Adobe. All Rights Reserved.

## Page 106

Adobe Experience Platform
Unified Experiences
Video/TV Desktop Mobile Social Web Email Kiosk IoT
Experience Intelligence Customer.ai Journey.ai Attribution.ai Leads.ai Content.ai
DESKTOP ADOBE PRODUCTS
Desktop Open Creative Cloud Premiere Rush CC
Mobile Desktop App iOS
Login with Adobe ID Premiere Rush CC
DEVICES Single App Plan
Install Premiere Rush Creative Cloud
IDENTITIES Desktop
Premiere Rush CC
CUSTOMER PROFILE EXPERIENCE EVENTS
ECI UUID CRM EMAIL NNAAMME: SE: Saarraahh R Roossee
D ID EMEMAAIILL: : ss..gg..rrososee@@ououttllookook..ccomom MOBILE CROSS-CHANNEL
4647729… 46378701… YAuPQ1K… srose@ GGENENDDERER: F: Feemmaallee CUSTOMER
outlook.com AAGGE: 3E: 333 Sarah Rose Visit Adobe.com “Upgrade Premiere
CCOOUUNTNTRRYY:: U Unniitetedd S Statatetess Scrolling on Instagram Rush”
MMOROREE…… Opened, Clicked
Install Premiere Rush CC
“Thank You for Renewing”
Followed Create Adobe ID Opened, Clicked
Guide SEGMENTATION App Guided Tour
Name Your Project
Add Media
Web Edit Sequence
Creator Social In-app Offer
Paid User Download Completed Purchase
Customer Support CRM Inventory Mgmt. POS Store Operations ERP Custom Apps
Front Office | Back Office
© 2019 Adobe. All Rights Reserved.

## Page 107

Adobe Experience Platform
Unified Experiences
Real-Time Edge Delivery Video/TV Desktop Mobile Social Web Email Kiosk IoT
Customer.ai Journey.ai Attribution.ai Leads.ai Content.ai
DESKTOP ADOBE PRODUCTS
Desktop Open Creative Cloud Premiere Rush CC
Mobile Desktop App iOS
Login with Adobe ID Premiere Rush CC
DEVICES Single App Plan
Install Premiere Rush Creative Cloud
IDENTITIES Desktop
Premiere Rush CC
CUSTOMER PROFILE EXPERIENCE EVENTS
ECI UUID CRM EMAIL NNAAMME: SE: Saarraahh R Roossee
D ID EMEMAAIILL: : ss..gg..rrososee@@ououttllookook..ccomom MOBILE CROSS-CHANNEL
4647729… 46378701… YAuPQ1K… srose@ GGENENDDERER: F: Feemmaallee CUSTOMER
outlook.com AAGGE: 3E: 333 Sarah Rose Visit Adobe.com “Upgrade Premiere
CCOOUUNTNTRRYY:: U Unniitetedd S Statatetess Scrolling on Instagram Rush”
MMOROREE…… Opened, Clicked
Install Premiere Rush CC
“Thank You for Renewing”
Followed Create Adobe ID Opened, Clicked
Guide SEGMENTATION App Guided Tour
Name Your Project
Add Media
Web Edit Sequence
Creator Social In-app Offer
Paid User Download Completed Purchase
Customer Support CRM Inventory Mgmt. POS Store Operations ERP Custom Apps
Front Office | Back Office
© 2019 Adobe. All Rights Reserved.

## Page 108

Adobe Experience Platform
Unified Experiences
Real-Time Edge Delivery Video/TV Desktop Mobile Social Web Email Kiosk IoT
Experience Intelligence Customer.ai Journey.ai Attribution.ai Leads.ai Content.ai
DESKTOP ADOBE PRODUCTS
Desktop Open Creative Cloud Premiere Rush CC
Mobile Desktop App iOS
Login with Adobe ID Premiere Rush CC
DEVICES Single App Plan
Install Premiere Rush Creative Cloud
IDENTITIES Desktop
Premiere Rush CC
CUSTOMER PROFILE EXPERIENCE EVENTS
ECI UUID CRM EMAIL NNAAMME: SE: Saarraahh R Roossee
Semantic Model D ID EMEMAAIILL: : ss..gg..rrososee@@ououttllookook..ccomom MOBILE CROSS-CHANNEL
4647729… 46378701… YAuPQ1K… srose@ GGENENDDERER: F: Feemmaallee CUSTOMER
of Customer Profile outlook.com AAGGE: 3E: 333 Sarah Rose Visit Adobe.com “Upgrade Premiere
CCOOUUNTNTRRYY:: U Unniitetedd S Statatetess Scrolling on Instagram Rush”
MMOROREE…… Opened, Clicked
Install Premiere Rush CC
“Thank You for Renewing”
Followed Create Adobe ID Opened, Clicked
Guide SEGMENTATION App Guided Tour
Name Your Project
Add Media
Web Edit Sequence
Creator Social In-app Offer
Paid User Download Completed Purchase
Customer Support CRM Inventory Mgmt. POS Store Operations ERP Custom Apps
Data Ingestion/Multi-Modal Data
Front Office | Back Office
© 2019 Adobe. All Rights Reserved.

## Page 109

Everywhere
Sensei-Powered Features Sensei Platform Sensei-First Apps
© 2019 Adobe. All Rights Reserved.

## Page 110

Sensei Platform
๏ DOCUMENTS ๏ CUSTOMER.AI
๏ DESIGN ๏ JOURNEY.AI
๏ IMAGING ๏ ATTRIBUTION.AI
๏ IMMERSIVE ๏ LEADS.AI
๏ VIDEO ๏ CONTENT.AI
© 2019 Adobe. All Rights Reserved.

## Page 111

Escaping Real-Time
Reimagined Everywhere
© 2019 Adobe. All Rights Reserved.

## Page 112

Executing On Our Growth Strategy
John Murphy | EVP & CFO
November 4, 2019
© 2019 Adobe. All Rights Reserved.

## Page 113

Updated Q4FY2019 Financial Targets
November 4, 2019
Revenue ~$2.97 billion
Digital Media segment revenue ~20% year-over-year growth
Digital Experience segment revenue ~23% year-over-year growth
Net new Digital Media ARR ~$475 million
Non-operating expense ~$20 million
Tax rate GAAP: ~11% Non-GAAP: ~11%
Earnings per share GAAP: ~$1.68 Non-GAAP: ~$2.25
Share count ~490 million shares
The information discussed on this slide contains forward looking statements that involve risk and uncertainty. Actual results may differ materially. For a discussion of these risks and uncertainties, you
should review Adobe’s SEC filings. Please see our investor relations website for a discussion of these targets and a detailed reconciliation between GAAP and non-GAAP targets.
© 2019 Adobe. All Rights Reserved.

## Page 114

Business Momentum
Adobe Revenue & Margin
Adobe Revenue & GAAP Operating Margin
$12 50%
$11
$10 40% %
) 31.5% in • Strong revenue growth with
s g
n $9 29.7% r
io a
l 30% M operating margin expansion
il 25.5%
$B$8 g
in
( t
e a
u $7 ~$11.15B r • FY2019 GAAP operating
n e
e 20% p
v margin impacted by
e $6 $9.03B P O
R A
$7.30B A acquisitions in FY2018
$5 10% G
$4 $5.85B
$3 0%
FY2016 FY2017 FY2018 FY2019E
Revenue GAAP Operating Margin
Source: Adobe; FY2019E reflects FY2019 YTD results and Q4FY19 financial targets
© 2019 Adobe. All Rights Reserved.

## Page 115

Business Momentum
Adobe Revenue & Margin
Adobe Revenue & Non-GAAP Operating Margin
$12 50%
$11 40.1% • Strong revenue growth with
$10 38.0% 40% % operating margin expansion
in
33.8% g
) r
s$9 a
n M
io • FY2019 operating margin
l 30% g
il in
$8 t
$B a impacted in 1HFY19 due to
( r
e e
u$7 ~$11.15B p acquisition accounting
n 20%
e P O
v A
e$6 $9.03B A
R G • Margin expansion returning in
$7.30B -
$5 10% n 2HFY19 as expected
$5.85B No
$4
$3 0%
FY2016 FY2017 FY2018 FY2019E
Revenue Non-GAAP Operating Margin
Source: Adobe; FY2019E reflects FY2019 YTD results and Q4FY19 financial targets; reconciliation between GAAP and non-GAAP operating margins can be found on our Investor Relations website
© 2019 Adobe. All Rights Reserved.

## Page 116

Business Momentum
Digital Media ARR & Revenue
$10 • Momentum continues with
expected record net new
$8 ARR in FY2019
• Multiple drivers contributing
s $6 to accelerated ARR
n
o
lli
i performance
B
$ $4
• Creative Cloud growth
$2 continues
• Adobe Document Cloud
$0 revenue growth
FY2016 FY2017 FY2018 FY2019E accelerates after move to
ARR subscriptions
Source: Adobe; FY2019E reflects FY2019 YTD results and Q4FY19 financial targets; FY2019 ARR is based on November 2018 FX rates held constant through the year; FY2016-FY2018 ARR amounts are based on
revalued FX rates exiting each fiscal year
© 2019 Adobe. All Rights Reserved.

## Page 117

Business Momentum
Digital Media ARR & Revenue
$10 • Momentum continues with
expected record net new
$8 ARR in FY2019
• Multiple drivers contributing
s $6 to accelerated ARR
n
o
lli
i performance
B
$ $4
• Creative Cloud growth
$2 continues
• Adobe Document Cloud
$0 revenue growth
FY2016 FY2017 FY2018 FY2019E accelerates after move to
ARR Revenue subscriptions
Source: Adobe; FY2019E reflects FY2019 YTD results and Q4FY19 financial targets; FY2019 ARR is based on November 2018 FX rates held constant through the year; FY2016-FY2018 ARR amounts are based on
revalued FX rates exiting each fiscal year
© 2019 Adobe. All Rights Reserved.

## Page 118

Business Momentum
Creative Cloud ARR & Revenue
$8
• Multiple growth drivers
fueling ARR & revenue
$6
• New user acquisition
s
n
o$4 • Single App upsell to
lli
i
B
$ All Apps
$2 • Adoption of services
• Global expansion
$0 • Engagement & retention
FY2016 FY2017 FY2018 FY2019E
ARR
Source: Adobe; FY2019E reflects FY2019 YTD results and Q4FY19 financial targets; FY2019 ARR is based on November 2018 FX rates held constant through the year; FY2016-FY2018 ARR amounts are based on
revalued FX rates exiting each fiscal year
© 2019 Adobe. All Rights Reserved.

## Page 119

Business Momentum
Creative Cloud ARR & Revenue
$8
• Multiple growth drivers
fueling ARR & revenue
$6
• New user acquisition
s
n
o$4 • Single App upsell to
lli
i
B
$ All Apps
$2 • Adoption of services
• Global expansion
$0 • Engagement & retention
FY2016 FY2017 FY2018 FY2019E
ARR Revenue
Source: Adobe; FY2019E reflects FY2019 YTD results and Q4FY19 financial targets; FY2019 ARR is based on November 2018 FX rates held constant through the year; FY2016-FY2018 ARR amounts are based on
revalued FX rates exiting each fiscal year
© 2019 Adobe. All Rights Reserved.

## Page 120

Business Momentum
Creative Cloud Revenue Mix
FY2016 Revenue Mix FY2019E Revenue Mix
Perpetual & OEM • Creative Cloud business has
Perpetual & OEM $0.2B doubled in three years
$0.2B • ~97% of revenue is
subscription-based
$3.2B ~$6.5B • Continued innovation and
tiered service offerings
$2.9B acquiring more users and
Subscription $6.3B enabling ARR growth
Subscription
Source: Adobe; FY2019E reflects FY2019 YTD results and Q4FY19 financial targets
© 2019 Adobe. All Rights Reserved.

## Page 121

Business Momentum
Creative Cloud ARR:Single App vs. All Apps
FY2016 FY2019E
• Good mix of new and
Single App existing customers for Single
Single App App and All Apps
• New customer acquisition
ramped up by Single App
adoption
• Two-thirds of Creative ARR is
All Apps based on All Apps
All Apps subscribers
Source: Adobe; FY2019E reflects FY2019 YTD results and Q4FY19 financial targets; excludes ARR associated with enterprise site licensing
© 2019 Adobe. All Rights Reserved.

## Page 122

Business Momentum
Adobe Document Cloud ARR & Revenue
$1.4 • Acceleration in growth driven
$1.2 by new customer acquisition
and stacking effect of
$1.0 subscriptions
s $0.8
n • Incremental performance
o
lli
i
B$0.6 driven by new growth drivers
$
$0.4 • PDF services
$0.2 • Reader & mobile upsell
$0.0 • Migration of perpetual
FY2016 FY2017 FY2018 FY2019E licenses to subscriptions
ARR
Source: Adobe; FY2019E reflects FY2019 YTD results and Q4FY19 financial targets; FY2019 ARR is based on November 2018 FX rates held constant through the year; FY2016-FY2018 ARR amounts are based on
revalued FX rates exiting each fiscal year
© 2019 Adobe. All Rights Reserved.

## Page 123

Business Momentum
Adobe Document Cloud ARR & Revenue
$1.4 • Acceleration in growth driven
$1.2 by new customer acquisition
and stacking effect of
$1.0 subscriptions
s $0.8
n • Incremental performance
o
lli
i
B$0.6 driven by new growth drivers
$
$0.4 • PDF services
$0.2 • Reader & mobile upsell
$0.0 • Migration of perpetual
FY2016 FY2017 FY2018 FY2019E licenses to subscriptions
ARR Revenue
Source: Adobe; FY2019E reflects FY2019 YTD results and Q4FY19 financial targets; FY2019 ARR is based on November 2018 FX rates held constant through the year; FY2016-FY2018 ARR amounts are based on
revalued FX rates exiting each fiscal year
© 2019 Adobe. All Rights Reserved.

## Page 124

Business Momentum
Adobe Document Cloud Revenue Mix
FY2016 Revenue Mix FY2019E Revenue Mix
Perpetual &
OEM • Subscription and ETLA
Perpetual & $0.2B adoption fueling growth of
OEM
$0.3B Service & subscription revenue
Support
$0.8B ~$1.2B • Perpetual installed base
represents migration
opportunity
$0.4B $1.0B
Subscription
Service & Subscription
Support
Source: Adobe; FY2019E reflects FY2019 YTD results and Q4FY2019 financial targets
© 2019 Adobe. All Rights Reserved.

## Page 125

Business Momentum
Adobe Experience Cloud Revenue Mix
FY2016 Revenue Mix FY2019E Revenue Mix
Perpetual & OEM • Adobe Experience Cloud
Service & revenue has doubled in
Perpetual & OEM Support three years
~$0.5B
• Focus has been on growing
Service & $0.4B subscription revenue
Support $1.6B ~$3.2B
• Strategically reduced Service
$1.1B & Support as a percentage
Subscription* ~$2.7B of total revenue
Subscription*
Source: Adobe; FY2019E reflects FY2019 YTD results and Q4FY2019 financial targets
* Includes revenue from SaaS, managed service and term offerings for Adobe Analytics Cloud, Adobe Marketing Cloud, and Adobe Experience Platform; all revenue for Adobe Advertising Cloud; and all technology revenue
for Adobe Commerce Cloud
© 2019 Adobe. All Rights Reserved.

## Page 126

Business Momentum
Adobe Experience Cloud Revenue by Revenue Type
FY2019E
Other*
Professional ~$0.2B • Focus has been on growing
Services ASV book of business and
~$0.4B
~$2.3B Subscription related subscription revenue
Advertising Annualized Subscription Value (ASV)
Usage-based ~$0.4B Pricing Models: • FY2019E subscription
~$3.2B • Number of data transactions
• Gross Merchandise Value (GMV) tiers revenue includes ~$400M
• Number of profiles of usage-based revenue
Source: Adobe; FY2019E reflects FY2019 YTD results and Q4FY2019 financial targets
* Other includes perpetual, video, OEM and support revenue
© 2019 Adobe. All Rights Reserved.

## Page 127

Business Momentum
Adobe Experience Cloud Subscription Revenue by Customer Solutions
FY2016 FY2019E
Advertising
Customer Advertising Content & • GTM strategy aligned with
Journey Content & Commerce customer solution categories
Management Commerce and industry use cases
$1.1B ~$2.7B • Comprehensive set of
Customer solutions poised to capture
Journey increasing share of large
Management TAM
Real-Time
Customer Profile & Insights
Real-Time Customer Profile & Insights
Source: Adobe; FY2019E reflects FY2019 YTD results and Q4FY2019 financial targets
© 2019 Adobe. All Rights Reserved.

## Page 128

Business Momentum
Deferred Revenue and Unbilled Backlog / RPO
$10
$8 • Remaining Performance
Obligation (RPO) replaces
s $6
n $5.05 deferred revenue and
io
l
il
B unbilled backlog metric
$ $3.94
$4 $3.42
• RPO provides visibility into
$2 contractually committed
$2.50 $3.05 future revenue
$2.02
$0
FY2016 FY2017 FY2018 FY2019E RPO
Deferred Revenue Unbilled Backlog
Source: Adobe; FY2019E reflects FY2019 YTD results and Q4FY2019 financial targets
© 2019 Adobe. All Rights Reserved.

## Page 129

Business Momentum
Operating Cash Flow
$5
• Sustained growth in
$4 Operating Cash Flow (OCF)
s
n • OCF growth drives capital
io
l
il $3
B management strategy,
$
$4.03 investment in existing
$2 $2.91 business, evaluation of
$2.20 inorganic opportunities and
return of capital to
$1 shareholders
FY2016 FY2017 FY2018 FY2019E
Source: Adobe; FY2019E reflects FY2019 YTD results and Q4FY2019 financial targets
© 2019 Adobe. All Rights Reserved.

## Page 130

Business Momentum
Capital Structure
Strong liquidity position Conservative leverage approach Excess cash returned to
• $3.7B of cash and short- • $1.9B of public debt outstanding stockholders through
term investments • $2.3B of bank term loans outstanding stock repurchase
• $1.0B unutilized credit • Rated A by S&P
facility, remains available • Rated A3 by Moody's
until 2023
Source: Adobe, as of Q3FY19
© 2019 Adobe. All Rights Reserved.

## Page 131

Business Momentum
Share Repurchase
$3 505
)
s
n )
io
l ns
il 500 o
B i
l
l
($ i
e M
s (
a$2 495 g
ch n
ur andi
ep t
s
t
e R 490 u
r $2.75B O
a s
h e
S
ar
r$1 $2.05B h
o 485 S
F
e
ed g
s ra
U $1.08B $1.10B e
h 480 v
s A
a
C
$0 475
FY2016 FY2017 FY2018 FY2019E
Cash Used for Share Repurchase Average Shares Outstanding
Source: Adobe; FY2019E reflects FY2019 YTD results and committed stock repurchase funding as noted in our Form 10-Q for Q3FY2019 filed in September 2019
© 2019 Adobe. All Rights Reserved.

## Page 132

Adobe Financial Strategy
Top Line Growth Operational Discipline Balance Sheet Strength Capital Management
• Creative Cloud fueled by • Disciplined spend management • Exceptional cash flow • Investment in existing
numerous growth drivers • Margin expansion performance business
• Adobe Document Cloud • Earnings growth • Conservative use of debt • Evaluation of inorganic
growth inflection financing opportunities
• Adobe Experience Cloud is • Dynamic planning capabilities • Strong & growing RPO • Return of capital to
the most comprehensive • Focused integration motion balances shareholders
CXM offering
• Investment in "Apps + • Changing tax environment
Services + Platforms" and
Sensei creates market
differentiation
© 2019 Adobe. All Rights Reserved.

## Page 133

Growth Opportunity
Digital Media Summary
• Category leadership & new category creation 2022 MARKET OPPORTUNITY
• Expanding customer universe with multi-surface apps Creative Cloud ~$31B
• Expecting strong Creative Cloud growth
• Reaching broader customer segments Creative Professionals ~$15B
• Pushing category & technology boundaries Communicators ~$12B
• Expecting strong Adobe Document Cloud growth Consumers ~$4B
• Using subscription model to drive new customer acquisition Adobe Document Cloud ~$13B
& migrate large perpetual installed base
• Monetizing document “verbs” & delivering frictionless PDF by Acrobat Applications ~$7B
embedding in third-party apps & providing document services
• Leveraging & investing in world-class DDOM capabilities Document Platform Services ~$6B
• Extensive list of growth drivers fueling net new ARR ~$44B
Total Addressable Market
Source: Adobe, November 2019
© 2019 Adobe. All Rights Reserved.

## Page 134

Growth Opportunity
Digital Experience Summary
• Category leadership & new category creation 2022 MARKET OPPORTUNITY
• Massive opportunity driven by digital transformation imperative Adobe Experience Cloud ~$84B
• Differentiated & most complete Customer Experience
Management offering Data & Insights ~$23B
• Introduced generational innovation in new products Content & Personalization ~$28B
& platforms in 2019 Commerce ~$10B
• Robust partner ecosystem increases opportunities
• Expecting bookings growth to fuel strong subscription Customer Journey Management ~$13B
revenue growth Advertising ~$10B
~$84B
Total Addressable Market
Source: IDC and Adobe, November 2019
© 2019 Adobe. All Rights Reserved.

## Page 135

Preliminary FY2020 Targets
November 4, 2019
Total Adobe revenue1 ~$13.15 billion
Digital Media segment revenue ~19% year-over-year growth
Digital Media ARR ~$1.55B of net new ARR
Digital Experience segment revenue ~16% year-over-year growth
Digital Experience subscription revenue2 ~18% year-over-year growth
3
Digital Experience subscription bookings >20% year-over-year growth
Earnings per share GAAP: ~$7.40 Non-GAAP: ~$9.75
1 Revenue targets were set based on Oct. 2019 foreign exchange (“FX”) rates, which for current planning purposes are assumed to be constant during fiscal year 2020
2 Includes revenue from SaaS, managed service and term offerings for Adobe Analytics Cloud, Adobe Marketing Cloud, and Adobe Experience Platform; all revenue for Adobe Advertising Cloud; and all technology
revenue for Adobe Commerce Cloud
3 Includes annualized subscription value of SaaS, managed service and term offerings under contract for Adobe Experience Cloud and excludes Adobe Advertising Cloud
The information discussed on this slide contains forward looking statements that involve risk and uncertainty. Actual results may differ materially. For a discussion of these risks and uncertainties, you should review
Adobe’s SEC filings. Please see our investor relations website for a discussion of these targets and a detailed reconciliation between GAAP and non-GAAP targets.
© 2019 Adobe. All Rights Reserved.

## Page 136

Growth and Margin at Scale
2022 Total Addressable Market
Category Creation Loyal & Growing Innovative Globally Unique
& Expansion Customer Universe Technology Platforms Admired Brand Financial Profile
Source: Adobe, November 2019
© 2019 Adobe. All Rights Reserved.