©2019CerenceInc.

CerenceInc.InvestorIntroduction

©2019CerenceInc.2

DisclaimerAdditionalInformationForadditionalinformationwithrespecttoCerenceandtheproposedspin-off,pleaserefertotheRegistrationStatementonForm10thatwillbefiledbyCerencewiththeSecuritiesandExchangeCommission(“SEC”).ThefinancialinformationincludedinthisdocumentmaynotnecessarilyreflectCerence’s financialposition,resultsofoperationsandcashflowsinthefutureorwhatCerence’sfinancialposition,resultsofoperationsandcashflowswouldhavebeenhadCerencebeenanindependent,publiclytradedcompanyduringtheperiodspresented.Thespin-offissubjecttocustomaryconditionsandregulatoryapprovals,includingfinalapprovalbyNuance’sboardofdirectors.Thiscommunicationshallnotconstituteanofferofanysecuritiesforsale,norshalltherebeanyoffer,saleordistributionofsecuritiesinanyjurisdictioninwhichsuchoffer,saleordistributionwouldbeunlawfulpriortoappropriateregistrationorqualificationunderthesecuritieslawsofsuchjurisdiction.

ForwardLookingStatementsStatementsinthispresentationregardingCerence’s futureperformance,resultsandfinancialcondition,expectedgrowthandinnovationandourmanagement’sfutureexpectations,beliefs,goals,plansorprospectsconstituteforward-lookingstatementswithinthemeaningofthePrivateSecuritiesLitigationReformActof1995.Anystatementsthatarenotstatementsofhistoricalfact(includingstatementscontainingthewords“believes,”“plans,”“anticipates,”“expects,”“intends”or“estimates”orsimilarexpressions)shouldalsobeconsideredtobeforward-lookingstatements.Thereareanumberofimportantfactorsthatcouldcauseactualresultsoreventstodiffermateriallyfromthoseindicatedbysuchforward-lookingstatements,includingbutnotlimitedto:theabilitytoeffecttheseparationandspin-offofourAutobusiness;ourabilitytosuccessfullywind-downcertainproductsorbusinesslines;fluctuationsindemandforourexistingandfutureproducts;fluctuationsinthemixofproductsandservicessoldinspecificperiods;furtherunanticipatedcostsresultingfromtheFY17malwareincidentincludingpotentialcostsassociatedwithgovernmentalinvestigationsthatmayresultfromtheincident;ourabilitytocontrolandsuccessfullymanageourexpensesandcashposition;ourabilitytodevelopandexecuteinatimelymannerourproductivityandcostinitiatives;theeffectsofcompetition,includingpricingpressure,andchangingbusinessmodelsinthemarketsandindustriesweserve;changestoeconomicconditionsintheUnitedStatesandinternationally;theimpositionoftariffsorothertrademeasuresparticularlybetweentheUnitedStatesandChina;potentialfutureimpairmentchargesrelatedtoourreorganizedbusinessreportingunits;fluctuatingcurrencyrates;possiblequalityissuesinourproductsandtechnologies;ourabilitytosuccessfullyintegrateoperationsandemployees

ofacquiredbusinesses;theabilitytorealizeanticipatedsynergiesfromacquiredbusinesses;andtocutstrandedcostsrelatedtodivestedbusinesses;andtheotherfactorsdescribedinourmostrecentForm10-K,Form10-QandotherfilingswiththeSECaswellasthosedescribedintheRegistrationStatementonForm10thatwillbefiledbyCerencewiththeSEC.Wedisclaimanyobligationtoupdateanyforward-lookingstatementsasaresultofdevelopmentsoccurringafterthedateofthisdocument.

Non-GAAPFinancialMeasuresWebelievethatprovidingthenon-GAAPinformationinadditiontotheGAAPpresentation,allowsinvestorstoviewthefinancialresultsinthewaymanagementviewstheoperatingresults.Wefurtherbelievethatprovidingthisinformationallowsinvestorstonotonlybetterunderstandourfinancialperformance,butmoreimportantly,toevaluatetheefficacyofthemethodologyandinformationusedbymanagementtoevaluateandmeasuresuchperformance.Thenon-GAAPinformationshouldnotbeconsideredsuperiorto,orasubstitutefor,financialstatementspreparedinaccordancewithGAAP.

Weutilizeanumberofdifferentfinancialmeasures,bothGAAPandnon-GAAP,inanalyzingandassessingtheoverallperformanceofthebusiness,formakingoperatingdecisionsandforforecastingandplanningforfutureperiods.Weconsidertheuseofnon-GAAPrevenuehelpfulinunderstandingtheperformanceofourbusiness,asitexcludesthepurchaseaccountingimpactonacquireddeferredrevenueandotheracquisition-relatedadjustmentstorevenue.Whileourmanagementusesthesenon-GAAPfinancialmeasuresasatooltoenhancetheirunderstandingofcertainaspectsofourfinancialperformance,ourmanagementdoesnotconsiderthesemeasurestobeasubstitutefor,orsuperiorto,theinformationprovidedbyGAAPfinancialstatements.Consistentwiththisapproach,webelievethatdisclosingnon-GAAPfinancialmeasurestothereadersofourfinancialstatementsprovidessuchreaderswithusefulsupplementaldatathat,whilenotasubstituteforGAAPfinancialstatements,allowsforgreatertransparencyinthereviewofourfinancialandoperationalperformance.

SeetheAppendixtothispresentationfornon-GAAPdefinitionsandreconciliationstothemostdirectlycomparableGAAPmeasures.

BasisofFinancialPresentationUnlessotherwisestated,thefinancialresultsandrelevantmetrics,yearoveryearfinancialcomparisons,andtrendsarepresentedunderASC605.

©2019CerenceInc.3

Today’sAgenda

1. CompanyOverview

2. MarketOpportunity

3. Product,SolutionsandCustomerOverview

4. GrowthOpportunities

5. FinancialSummary

©2019CerenceInc.

Spin-OffTransactionUpdate

4

CerenceLeadershipTeamFullyinPlace

SeparationAgreementsBetweenNuanceandCerenceHaveBeenFinalized

Identified7MembersfortheCerenceBoardofDirectors

Stand-UpActivitiesforCerenceonSchedule

Spin-OffExpectedtobeCompleteonOctober1,2019

©2019CerenceInc.5

WhowearePremierproviderofA.I.-poweredassistantsandinnovationsforconnectedandautonomousvehicles

VisionEnableamoreenjoyable,saferjourneyforeveryone

MissionEmpoweranautomotiveecosystemwithdigitalplatformsolutionsforconnectedandautonomousvehicles

©2019CerenceInc.

CerenceFacts

6

20+yearsindustry experience&leadership

~1,300employees;~700inR&D

Boston /SiliconValleypresence

21officesworldwide

280+millioncarswithCerence

60+automotivecustomers

70+languagessupported

~1,250 patents

Estimated FY2019revenue:GAAPASC 606:$300 - $302millionNon-GAAP: $308- $310million

Estimated FY2019adjustedEBITDA:$100 - $102 million

CerenceOffices

©2019CerenceInc.

CerenceCompanyHighlights

7

Market-leadingAutomotiveCognitiveAssistanceOfferings1

SignificantMarketOpportunityinAI-poweredAutomotiveandMobilitySolutions2

DeepCustomerRelationshipsProvideAdvantageandHighEntryBarrier3

MultipleVectorsforGrowth4

AttractiveFinancialProfile5

ExperiencedTeam6

©2019CerenceInc.

CerenceLeadershipTeam

8

MarkGallenbergerChiefFinancialOfficer

CharlesKuaiSeniorVicePresident,GreaterChinaRegion

Dr.UdoHaiberSeniorVicePresident,

R&D

LeanneFitzgeraldGeneralCounsel

Dr.StefanOrtmannsExecutiveVicePresident

EgonJungheimSeniorVicePresident,

GlobalAutomotiveSales

RichardMackChiefMarketingOfficer

BridgetCollinsChiefInformation

Officer

SachinSahneyChiefHROfficer

SanjayDhawanChiefExecutiveOfficer

©2019CerenceInc.

SanjayDhawanCEOCerence

ArunSarin,ChairmanFormerVodafoneCEO

TomBeaudoinEVP,Transformation,Nuance

MarianneBudnikCMO,CyberArk

AlfredNietzelFormerCDKGlobalCFO

SanjayJhaFormerMotorolaMobilityCEO

KristiAnnMatusFormerathenahealth CFO

CerenceBoardofDirectors

9

MarketOpportunity

©2019CerenceInc.

MajorSecularTrendsDrivingMarketforAutomotiveCognitiveAssistance

11

VehicleIntelligence

+ Real-timedataandcontent

+ Increasedcomputingpoweronboard

+ ProprietaryOEMvirtualassistants

VirtualAssistants

+ Broadsmartphoneandsmartspeakeruse

+ On-demandaccesstoassistantsandbots

+ Portabilitybetweencarandhome

DistractedDriving

+ Increasingsourcesofdistraction

+ Hands-freeandeyes-freesolutions

+ Reducedistractionbutmaintainexperience

SharedMobility

+ Ridesharingandvehiclesharing

+ Moretimetoengagewithappsandservices

+ Consistent,personalizedexperience

AutonomousDriving

+ Increasinglypassive,passenger-likedrivers

+ Tripplanningservices

+ Infotainmentandproductivityneed

©2019CerenceInc.

LargeGrowingMarketwithSignificantOpportunity

AdjacentMarkets

+ AutonomousCars

+ DriverMonitoring

+ CarDataMonetization

+ SmartCities

12

2019 2023 2025

$0.5B

$1.6B

ServiceableAddressableMarket1 TotalAddressableMarket2

(1) Source:Managementestimates(2) Source:Tractica

$0.6B

$2.7B

$4.5B

©2019CerenceInc.

IncreasingMarketPenetrationofEdge(In-Car)A.I.Products+ Automateddrivingtechnologiesarelinkedtothegrowthof

edgeinnovationswithinthevehicle+ Increasedfocusonlimitingdistracteddrivingand

convenienceofcontrollingtheinfotainmentsystem+ Expansionofsolutionsfrompremiumtoentrylevel

IncreasingMarketPenetrationofConnected(Cloud-based)Services+ Connectedtechnologyisincreasinglynecessaryasusers

wantvehicles toactlikerollingsmartphones+ Driversdependonvehiclesforrangeofinformation

includingdirections,internetradio,restaurantrecommendations,weather,etc.

+ Expansionofsolutionsfrompremiumtoentrylevel

(1) Source:Managementestimates

12%

50%

2018 2023

%ofGlobalVehicleswithDesigned-inConnectedServices159%

85%

2018 2023

%ofGlobalVehicleswithEdgeAIProducts1

13

IncreasingMarketPenetration

Product,SolutionsandCustomerOverview

©2019CerenceInc.

CerenceSolutionPortfolio

ProfessionalServices

GlobalorganizationworkscloselywithOEMsandsupplierstotailorsolutionstodesiredrequirementsofvehiclemodels

Edge(In-Car)Products

Installedwithinavehicle’sheadunit;tailoredtocustomers’desiredusecasesandavehicle’ssystems,sensorsandinterfaces

Applications

Packagedend-to-endsolutionsandproductsthatrequirelimitedcustomizationanddelivervaluefastertoOEMsandsuppliers

Connected(Cloud-based)Services

Deliveredthroughcloud-basedframework;enhancedfeaturesthroughincreasedcomputingpowerandcontent

DeveloperToolkits

DevelopertoolsforOEMandsupplierstocreatecustomerapplicationsthatcanoperatewithintheCerenceplatform

PremierEnd-to-EndOfferingforVehicleAssistants

15

©2019CerenceInc.

Connected(Cloud-based)ServicesEdge(In-Car)Products

AutomaticSpeechRecognition

NaturalLanguageUnderstanding TexttoSpeech

VoiceBiometricsHandwritingRecognition SpeechSignalEnhancement CloudConnector

AutomaticSpeechRecognition TexttoSpeech Voice

Biometrics

NaturalLanguageGeneration 3rd PartyContent

CustomNaturalLanguage

UnderstandingCompanionApp

CognitiveArbitration

ProfessionalServices

CerenceProductsandSolutions

16

CerencePlatformFramework– A“Hybrid”Architecture

DeveloperToolkits

Applications

PredictiveText

©2019CerenceInc.

Restaurants

LocalBusiness

Multi-Country

BroadDomainExpertiseandCoverage

17

FlightStatus

Stocks

CityEvents

Sports

WeatherPOIKnowledge

News

CarManual

GeneralKnowledge

Information

Calling Calendar

Notes

Tasks

Reminders

Messaging

Email

LocationSharing

CommunicationControl

HVAC

Command&Control

AudioControl

CarStatus

Help

AddressEntry

UniversalPOISearch

Navigation

Radio

Podcast

LocalMusic

Media

OnlineMusic

Calc

UnitConverter

CurrencyConverter

Horoscope

PublicHolidays

SchoolVacations

Date&Time

GEOQuiz

ChatBot

LunarCalendar

Tools

W3W

©2019CerenceInc.

GlobalLanguageCapabilities

Potential future support

SupportedbyCerencespeechtechnologyin2020

SupportedbyCerencespeechtechnologytoday

18

©2019CerenceInc.

WhyCerenceWins

CompetitionversusNicheMarketParticipants+ Superiortechnologybasedonbenchmarkresults

+ Significantscale

+ Far-reaching,globalteam

+ Best-in-classportfolioofcompatiblelanguages

+ Deep,singularfocusontheautomotivemarket

19

CoexistencewithLargeTechnologyCompanies+ Cognitivearbitrationsupportsthird-partyvirtualassistants

throughconsistentOEM-brandedinterface

+ Cerenceoffersopen,neutralplatform

+ OEMmaintainscontrolofdata

+ Deep,singularfocusontheautomotivemarketApproach,PositionandHistoryCreateDistinctAdvantage

+ Premiertechnology

+ Entrenchedcustomerrelationships

+ StrategicOEMalignment

+ Hybridsolutionsplatform

+ Broadlanguageandlocalcoverage

+ Customintegrationandexperience

+ Neutralandopenplatform

©2019CerenceInc.

ExtensiveBaseofLoyalCustomersAllMajorOEMsWorldwide AllMajorTier-1SuppliersWorldwide

20

GrowthOpportunities

©2019CerenceInc.

PillarsofCerenceGrowthOpportunity

22

Penetration+ Approximately 54%ofallshipped

carsincalendarQ12019utilizeCerence,including hybridAIsolutionswith62%YoYgrowth

+ Infotainmentunitsinvehiclestrendinghigherthanprojected

+ Edgepenetrationincreasingfrom59%in2018to85%by20231

+ Connectedcarincreasingfrom12%in2018to50%by20231

RevenueperVehicle+ Growingcomplexityofedge

solutions and increasedfocusonmulti-modality

+ Growthofconnected-cloudsolutions,includinguse ofthird-partyservices

MarketShare+ GrowshareinConnectedcloud-

basedservices+ Maintain andgrow marketshare

inEdgeproducts+ IncreasemarketshareinChina

andotheremergingmarkets

1 2 3

(1) Source:Managementestimates

©2019CerenceInc.

2021- 2022EnhancedExperiences+ EmotionalAI+ Autonomousdriving+ Cabinanddrivermonitoring+ Multi-modalinterfaces

2020CoreExtensions+ Domainandgeographicexpansion+ Developerecosystem+ State-of-the-artofferingssuchas

sirendetection,multi-seatintelligenceandabutton-freecar

2023- BeyondEmergingOpportunities+ Augmentedreality+ Smartcities+ Deepsensors+ Immersiveexperiences

InnovativeProductRoadmap

23

FinancialSummary

©2019CerenceInc.

StrongGrowthTrajectory

ExcellentRevenueVisibility

HighProfitability

+ Highmarginbusinessdrivesstrongoperatingleverageonincrementalrevenues

+ 33%adjustedEBITDAmargin(FY19Guidance)

+ Expandingrevenuebasewithinnovativeofferingandindustry-leadingcustomers

+ FY19ASC606GAAPrevenueexpectedtobebetween$300millionand$302million

+ FY19non-GAAPrevenueexpectedtobebetween$308millionand$310million

+ Long-termcustomercontractsanddesigned-intechnologyprovidestrongrevenuevisibility

+ Highswitchingcostsandstrongcustomerrelationshipscreatehighlydefensiblemarketposition

+ $1.3billion+ofestimatedbacklog,with~50%toberecognizedinthenextthreeyears1

FinancialHighlights

25

(1)Thesefiguresareestimatesandbasedonexistingcustomercontractsandmanagementestimatesaboutfuturevehicleshipments,andtherevenueweactuallyrecognizefromourbacklogissubjecttoseveralfactors,includingthenumberandtimingofvehiclesourcustomersship,potentialterminationsorchangesinscopeofcustomercontractsandcurrencyfluctuations.

©2019CerenceInc.

GAAPFinancialHighlights

26

$211

$245

$277

$300- $302 $303- $305

71%

72%

70%

69% 69%

0.65

0.67

0.69

0.71

0.73

0.75

0.77

0.79

0

50

100

150

200

250

300

350

2016A 2017A 2018A 2019EASC606 2019EASC605

Revenue GrossMargin($inmillions)

©2019CerenceInc.

CerenceRevenueStreams(Non-GAAP)

27

57%

26%

17%

Non-GAAPRevenue(FY196-monthYTD)

License Connected ProfessionalServices

LicenseRevenueRevenuerecognizedonunitshipmentoronprepayments

ConnectedRevenueDeferredrevenuerecorded,amortizedtorevenueoverdurationofservicecontract

ProfessionalServicesRevenueRevenuerecognizedonpercentageofcompletion

DeferredRevenue Revenue

Note: Diagramsareillustrative

©2019CerenceInc.

ConsistentRevenueGrowth(non-GAAP)

28

TrendsinRevenue

+ IncreaseddemandforCerencehybridsolutions

+ Customerproductportfolioexpansiondrivingincreaseinlicenserevenue

+ Customershiftsdrivinggrowthinconnectedservices

13%FY16– FY19CAGR

130149

172

48

50

4637

50

64

0

0

0

$215

$249

$282

2016A 2017A 2018A 2019E

License ProfessionalServices Connected

$308-$310

($inmillions)

©2019CerenceInc.

License $590

Connected $688

ProfessionalServices $70

$1.3Billion+BacklogCreatesHighRevenueVisibility

29

($inmillions)

BacklogasofMarch31,2019(approximately$1.3billion+)1

Expect50%toconverttorevenueoverthenextthreeyears

$260$230

$180

2020E 2021E 2022E

EstimatedRevenuefromBacklog

(1)Thesefiguresareestimatesandbasedonexistingcustomercontractsandmanagementestimatesaboutfuturevehicleshipments,andtherevenueweactuallyrecognizefromourbacklogissubjecttoseveralfactors,includingthenumberandtimingofvehiclesourcustomersship,potentialterminationsorchangesinscopeofcustomercontractsandcurrencyfluctuations.

©2019CerenceInc.30

ProfitLeverageDrivenbyHighGrossMargin(non-GAAP)

TrendsinGrossMargin

+ Increaseintotalcostofrevenuedrivenbycloudinfrastructureandemployeecostsforprofessionalservicesandconnectedservices

+ Connectedservicesgrossmarginincreasedduetoconnectedservicesrevenuegrowthonrelativelyfixedcosts

+ Professionalservicesgrossmargindecreaseddrivenbyincreasedinvestmentsinexpandingthebusiness

99% 99% 99% 99%

36%

50% 50%55%

44%

33%

14% 15%

76% 76%74% 72%

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

2016A 2017A 2018A 2019E

License Connected ProfessionalServices Blended

©2019CerenceInc.

SolidHistoricalAdjustedEBITDAandCashFlowPerformance

31

+ IncreasedR&DinvestmentinFY18andFY19

(inmillions)

$97$115

$80- $85

2017A 2018A 2019E

CFFO

+ FY19includesanestimated$10millioninnon-recurringexpensestostand-upCerence

$109 $106 $101

2017A 2018A 2019E

AdjustedEBITDA(inmillions)

©2019CerenceInc.

Near-termCashFlowHeadwindDrivenbyDeclineinLegacyConnectedProgram

32 Note:ActualbillingsareestimatedbasedonreportedNWCchangesingivenperiods.

$82$71

$52

$23 $42$58

$105$113 $110

2017A 2018A 2019E

ConnectedBillingsLegacy New

$41$51

$61

$8

$13

$21

$49

$64

$82

2017A 2018A 2019E

ConnectedRevenueLegacy New

$55$49

$28

2017A 2018A 2019E

ChangeinDeferredConnectedRevenue

Legacyprogram:negativecashswing+ Acquiredin2013,legacyprogramwasapioneeringplatformwithmulti-

mediacontentintegrated.+ Majorityofthecashhasbeencollected,andtherevenueswillberecognized

fromdeferredrevenue,causingaheadwindtoFCF.

Newsoftwareprogram:+ Steadygrowthinbillingsandrevenuescreatespositivecashflows+ Deferredrevenuebalanceexpectedtodeclinein2020+ Expecttogrowdeferredrevenuein2to3yearsdrivenbynew

programramp

(inmillions)

www.cerence.com

Thankyou

©2019CerenceInc.

Appendix

34

©2019CerenceInc.35

Non-GAAPFinancialMeasures– DefinitionsNon-GAAPrevenue

Weconsidertheuseofnon-GAAPrevenuehelpfulinunderstandingtheperformanceofourbusiness,asitexcludesthepurchaseaccountingimpactonacquireddeferredrevenueandotheracquisition-relatedadjustmentstorevenue.Weprovidesupplementarynon-GAAPfinancialmeasuresofrevenuethatincluderevenuethatwewouldhaverecognizedbutforthepurchaseaccountingtreatmentofacquisitiontransactions.Non-GAAPrevenuealsoincludesrevenuethatwewouldhaverecognizedhadwenotacquiredintellectualpropertyandotherassetsfromthesamecustomer.BecauseGAAPaccountingrequirestheeliminationofthisrevenue,GAAPresultsalonedonotfullycaptureallofoureconomicactivities.Thesenon-GAAPadjustmentsareintendedtoreflectthefullamountofsuchrevenue.Weincludenon-GAAPrevenuetoallowformorecompletecomparisonstothefinancialresultsofhistoricaloperations,forward-lookingguidanceandthefinancialresultsofpeercompanies.Webelievetheseadjustmentsareusefultomanagementandinvestorsasameasureoftheongoingperformanceofthebusinessbecause,althoughwecannotbecertainthatcustomerswillrenewtheircontracts,wehavehistoricallyexperiencedhighrenewalratesonmaintenanceandsupportagreementsandothercustomercontracts.Additionally,althoughacquisition-relatedrevenueadjustmentsarenon-recurringwithrespecttopastacquisitions,wegenerallywillincurtheseadjustmentsinconnectionwithanyfutureacquisitions.

Non-GAAPoperatingincomeandadjustedEBITDA

Non-GAAPoperatingincomeisdefinedasoperatingincomebeforestock-basedcompensation,amortizationofacquiredintangibleassets,restructuringandacquisition-relatedcosts,andacquisition-relatedrevenueadjustments.AdjustedEBITDAisdefinedasnon-GAAPoperatingincomebeforedepreciationexpense.

Stock-basedcompensation.Becauseofvaryingvaluationmethodologies,subjectiveassumptionsandthevarietyofawardtypes,webelievethatexcludingstock-basedcompensationallowsformoreaccuratecomparisonsofoperatingresultstopeercompanies.Weevaluateperformancebothwithandwithoutthesemeasuresbecausecompensationexpenserelatedtostock-basedcompensationistypicallynon-cashandtheoptionsandrestrictedawardsgrantedareinfluencedbytheCompany’sstockpriceandotherfactorssuchasvolatilitythatarebeyondourcontrol.Theexpenserelatedtostock-basedawardsisgenerallynotcontrollableintheshort-termandcanvarysignificantlybasedonthetiming,sizeandnatureofawardsgranted.Assuch,wedonotincludesuchchargesinoperating

plans.Stock-basedcompensationwillcontinueinfutureperiods.

Amortizationofacquiredintangibleassets.Weexcludetheamortizationofacquiredintangibleassetsfromnon-GAAPexpenseandincomemeasures.Theseamountsareinconsistentinamountandfrequencyandaresignificantlyimpactedbythetimingandsizeofacquisitions.Providingasupplementalmeasurewhichexcludesthesechargesallowsmanagementandinvestorstoevaluateresults“as-if”theacquiredintangibleassetshadbeendevelopedinternallyratherthanacquiredand,therefore,providesasupplementalmeasureofperformanceinwhichouracquiredintellectualpropertyistreatedinacomparablemannertoourinternallydevelopedintellectualproperty.Althoughweexcludeamortizationofacquiredintangibleassetsfromournon-GAAPexpenses,webelievethatitisimportantforinvestorstounderstandthatsuchintangibleassetscontributetorevenuegeneration.Amortizationofintangibleassetsthatrelatetopastacquisitionswillrecurinfutureperiodsuntilsuchintangibleassetshavebeenfullyamortized.Futureacquisitionsmayresultintheamortizationofadditionalintangibleassets.

Restructuringandacquisition-relatedcosts.Toallowmoreaccuratecomparisonsofthefinancialresultstohistoricaloperations,forwardlookingguidanceandthefinancialresultsoflessacquisitivepeercompanies,weprovidesupplementarynon-GAAPfinancialmeasures,whichexcludecertaintransition,integration,andotheracquisition-relatedexpenseitemsresultingfromacquisitionsandalsoexcludeseparationcostsdirectlyattributabletotheCerencebusinessbecomingastand-alonepubliccompany.Weconsiderthesetypesofcostsandadjustments,toagreatextent,tobeunpredictableanddependentonasignificantnumberoffactorsthatareoutsideofourcontrol.Furthermore,wedonotconsideracquisition-relatedcostsandadjustmentstoberelatedtotheorganiccontinuingoperationsoftheacquiredbusinessesandaregenerallynotrelevanttoassessingorestimatingthelong-termperformanceoftheacquiredassets.Inaddition,thesize,complexityand/orvolumeofpastacquisitions,whichoftendrivesthemagnitudeofacquisitionrelatedcosts,maynotbeindicativeofthesize,complexityand/orvolumeoffutureacquisitions.Byexcludingacquisition-relatedcostsandadjustmentsfromournon-GAAPmeasures,managementisbetterabletoevaluateourabilitytoutilizeourexistingassetsandestimatethelong-termvaluethatacquiredassetswillgenerateforus.Webelievethatprovidingasupplementalnon-GAAPmeasure,whichexcludestheseitems,allowsmanagementandinvestorstoconsidertheongoingoperationsofthebusinessbothwith,andwithout,suchexpenses.

©2019CerenceInc.36

GAAPtoNon-GAAPReconciliation2018

($ in millions)

GAAP revenue license $ 171 $ 149 $ 130 Acquisition-related revenue adjustments 1 - - Non-GAAP revenue license $ 172 $ 149 $ 130

GAAP revenue connected services $ 60 $ 46 $ 33 Acquisition-related revenue adjustments 4 4 4 Non-GAAP revenue connected services $ 64 $ 50 $ 37

GAAP revenue professional services and other $ 46 $ 50 $ 48 Acquisition-related revenue adjustments - - - Non-GAAP revenue professional services and other $ 46 $ 50 $ 48

GAAP revenue $ 277 $ 245 $ 211 Acquisition-related revenue adjustments 5 4 4

Non-GAAP revenue $ 282 $ 249 $ 215

GAAP gross profit $ 194 $ 176 $ 151 Stock-based compensation 2 2 2 Amortization of intangibles 8 7 7 Acquisition related revenue adjustments 5 4 4 Non-GAAP gross profit $ 209 $ 189 $ 164

GAAP net income $ 6 $ 47 $ 35 Acquisition-related adjustment - revenues 5 4 4 Stock-based compensation 22 20 19 Amortization of intangibles 17 13 14 Restructuring and other costs, net 13 2 2 Acquisition-related costs 4 1 - Depreciation 9 7 6 Provision for income taxes 31 16 12 Other (1) (1) -

Adjusted EBITDA $ 106 $ 109 $ 92

Fiscal Year Ending September 30, 2017 2016

©2019CerenceInc.37

GAAPtoNon-GAAPReconciliation

($ in millions) Low Mid High Low Mid High

GAAP revenue 300$ 301$ 302$ 303$ 304$ 305$ Acquisition-related revenue adjustments 5 5 5 5 5 5

Non-GAAP revenue 305$ 306$ 307$ 308$ 309$ 310$

GAAP Gross Profit 202$ 204$ 206$ 206$ 208$ 210$ Stock-based compensation 2 2 2 2 2 2 Amortization of intangibles 8 8 8 8 8 8 Acquisition-related revenue adjustments 5 5 5 5 5 5

Non-GAAP Gross Profit 217$ 219$ 221$ 221$ 223$ 225$

GAAP net income (1) (1)$ 0$ 1$ 3$ 4$ 5$ Stock-based compensation 26 26 26 26 26 26 Amortization of intangibles 21 21 21 21 21 21 Restructuring and other costs, net 36 36 36 36 36 36 Acquisition-related costs 1 1 1 1 1 1 Acquisition-related adjustment - revenues 5 5 5 5 5 5 Depreciation 8 8 8 8 8 8 Provision for income taxes (1) - - - - - -

Adjusted EBITDA 96$ 97$ 98$ 100$ 101$ 102$

Guidance for Fiscal Year 2019ASC 606 ASC 605

(1) FY2019 Estimated Net income does not include income tax provision as we are currently unable to estimate the full year income taxes for Cerence on a standalone basis.

www.cerence.com