Exasol AG

Investor Presentation • Sep 21, 2020

PRESENTATION 1H 2020 21. SEPTEMBER 2020

DISCLAIMER

This presentation contains future-oriented, forward-looking statements ("Forward- looking Statements"), estimates, opinions, projections and forecasts representing the current assessments and views with respect to anticipated future performance of Exasol AG. That assessments, views and forward-looking statements are subject to changes. There are uncertain conditions that are for the most part difficult to predict and are beyond the control of Exasol AG. Exasol AG is not under any obligation to publish any information resulting in changes in framework conditions or to publish revised information. subject to updating, revision and amendment, and such information may change materially. Neither Exasol AG nor any of its directors,

```` The information in this presentation as well as The Forward-looking Statements" are of preliminary and abbreviated nature and may be officers, employees, agents or affiliates undertakes or is under any duty to update this presentation or to correct any inaccuracies in any such information which may become apparent or to provide any additional information.

The Forward-looking Statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "aims", "plans", "predicts", "may", "will" or "should" or, in each case, their negative, or other variations or comparable terminology. These Forward-looking Statements include all matters that are not historical facts. They appear in a number of places throughout this presentation and include statements regarding Exasol's intentions, beliefs or current expectations concerning, among other things, Exasol's prospects, growth, strategies, the industry in which it operates and potential or ongoing acquisitions. By their nature, Forward-looking Statements involve significant risks and uncertainties, because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking Statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved.

1H20 HIGHLIGHTS 1H20 HIGHLIGHTS

Execution of our IPO in May 2020 with gross proceeds of EUR 48.5m

Ready to enhance all growth cylinders

Successful navigation through the COVID-19 crisis

```` Major processes transferred to home office and remote solutions without any disruption for our customers

Solid financial metrics

• 30% ARR growth
• 92.1% operating gross profit margin

Delivering sound financial results in difficult and uncertain times

Gross profit margin 92.1% 90%

ARR +30%; EUR 20.8m

Customer growth 16 new signings

News sales/marketing hires

71 as of end of August 2020 +21 new hires in July and August

COMPANY OVERVIEW

As businesses undergo digital transformation they need highperformance analytics to support increasing complexity of operations and pace of business decision making of RAM & use cases and apps using data

WHY ? Legacy databases just can't keep pace.

data volumes & complexity

Exploding Inefficient use infrastructure

Not designed for org-wide

self-service Not designed for advances in AI/ML

Multiplying

Too slow for the realtime business

EXASOL'S OPPORTUNITY <sup>6</sup>

Exasol's Unique Technology Advantages

Massively Parallel ```` Processing

Exasol's unique architecture leads to optimal scalability across distributed systems and commodity infrastructure

Smarter In-Memory

Architecture turns RAM into a smart accelerator for ultra-fast processing, fewer I/O operations and hot data instantly available

Open Compute

Comprehensive support for all programming languages, opensource AI frameworks & choice of deployment modes

UNIQUE TECHNOLOGY <sup>7</sup>

"Let Them Experience the Performance"

SPEED

OWNERSHIP COST

100x faster query performance

Product Strategy & Execution Pillars Expand Choice World-class UX + CX Sell Transformation

• Pricing by Volume or by Consumption
• Technology Ecosystem Integration
• Deployment in the public Cloud, private Cloud or On-Premise

````

• Discovery
• Trial
• Onboarding
• Adoption
• Ease of use

• Expansion

• BI Acceleration

• DW Modernization
• Vertical-centric messaging
• Deliver high-performance unified analytics platform

BUILD ON PERFORMANCE EDGE

Strategy to accelerate ARR growth: Increase wallet share with existing customers

Exponential data growth drives volume or consumption-based business model

User growth exerts pressure on systems which leads to increased performance requirements

Data Growth User Growth Application Growth

Increasing number of processes and apps driven by data / users leads to wider adoption and usage across organization

DRIVERS FOR INCREASING WALLET SHARE AT EXISTING CUSTOMERS ¹⁰

Strategy to accelerate ARR growth: Expand footprint and brand awareness globally

> +100

Sales and marketing hires

planned over the next two years, several top executives and specialists already onboarded

50

Sales and marketing team members as end of June 2020. +50 new hires planned in 2H20

```` New partners in 1H20: New hires signed as end of August 2020. 71 sales and marketing specialists

+21 +38

enhance partner network to grow reach; improve brand awareness reached

High quality customer base across various industries and regions. Selected examples

Exasol

High quality customer base across various industries and regions. Selected examples from the 4 main verticals

EXASOL'S STRATEGIC KEY PILLARS IN A NUTSHELL: SPEED AND COST OF OWNERSHIP AS MAJOR USPS • Driving the Group to subscription-, cloud- and consumption-based relationships

• with our customers.
• Platform-independent approach: Running across all major cloud platforms, private cloud infrastructures and on-premise solutions.
• ```` • Challenging legacy players and direct competitors with our core USPs: Speed, sheer power, cost efficiency and predictability, platform-independence, ease of use and scalability.
• Choice for our customers: data volume or data consumption licensing, available infrastructure, preferred platform, data science languages, etc.
• Operating a highly scalable infrastructure: The solution is applicable to all industries and use cases.
• Clear growth strategy: (1) Increasing wallet share with existing customers, (2) increase market share in DACH, (3) regional expansion especially in the USA and UK, (4) scale partner network.

CUSTOMERS

Investment Summary

Exasol is a true market disrupter in multibillion USD data analytics market

Designed from day one to replace legacy database systems with next-level performance

IPO proceeds deliver fuel to enhance all growth cylinders accelerating ARR growth

Solid financial metrics in uncertain times in 1H20: 30% organic ARR growth, >90% gross profit margin

Absolute performance leader in terms of speed, scale, flexibility, and cost of ownership

Exasol

1H20 FINANCIAL RESULTS

SOLID FINANCIAL PERFORMANCE IN 1H20: ARR +30%, OPERATING GROSS PROFIT MARGIN 92.1% in EUR m 30.06.20 30.06.19 Change

SOLID FINANCIAL PERFORMANCE IN 1H20:
				ARR +30%, OPERATING GROSS PROFIT MARGIN 92.1%
in EUR m	30.06.20	30.06.19	Change
Annual Recurring Revenue (ARR)	20.8	16.0	30.0%	existing customers and (2) new customer wins.
Revenue	10.1	11.0	-8.2%
Operating gross profit margin	92.1%	90.9%	+1.2PP	included strict management of our costs.
EBITDA	-15.0	-5.1	n.m.	````
adjusted EBITDA	-1.8	0.8	n.m.	decrease largely related to a changing revenue mix.
Net profit	-16.2	-6.7	n.m.
adjusted net profit	-3.0	-0.8	n.m.	3.1m IPO expenses).

• ARR growth of +30% driven by (1) revenue growth with existing customers and (2) new customer wins.
• ```` • In 1H20, ARR growth was achieved with limited financial resources pre-IPO. Furthermore, in early March 20, Exasol introduced a COVID-19 reaction plan which included strict management of our costs.
• Revenue decrease in-line with our strategy to shift the business model towards subscription-based approaches; decrease largely related to a changing revenue mix.
• Operating gross margin remains at a high level of > 90%.
• EBITDA impacted by non-operating effects of EUR 13.2m (EUR 10.1m share-based remuneration scheme; EUR 3.1m IPO expenses).

in EUR m 30.06.20 30.06.19 Change REVENUE PERFORMANCE REFLECTS OUR STRATEGIC SHIFT TOWARDS SUBSCRIPTION-BASED MODELS

TOWARDS SUBSCRIPTION-BASED MODELS				REVENUE PERFORMANCE REFLECTS OUR STRATEGIC SHIFT
in EUR m	30.06.20	30.06.19	Change	• Substantial shift in the revenue mix resulted in
Monthly Recurring Revenue
(MRR)	1.7	1.3	30.0%
Annual Recurring Revenue (ARR)	20.8	16.0	30.0%	recurring-based models.
Revenue	10.1	11.0	-8.2%
			````
Recurring Revenue (for the period)	9.2	7.1	29.6%	revenue increase seasonally.
in% of Revenue	90.7%	64.2%	+26.5PP
Other Revenue	0.9	3.9	-76.9%	services and hardware.
in% of Revenue	9.3%	35.8%	-26.5PP	• Recurring revenue: Revenues which are subscription services, maintenance.

• Substantial shift in the revenue mix resulted in decreasing revenue; following Exasol's strategy to drive the business model towards subscription-based and recurring-based models. • In 2H20 Exasol expects slightly increasing share of Other
• Quality of revenue improved: Recurring Revenue for the period up by +29.6%, reflecting 90.7% of Group Revenue.
• ```` Revenue: Usually in the fourth quarter one-time license revenue increase seasonally.
• Other Revenue include one-time licenses, consulting services and hardware.
• Recurring revenue: Revenues which are subscriptionbased with a duration of at least > 12 months, e.g. cloud services, maintenance.

EXPENSES DRIVEN BY NON-OPERATING EFFECTS

EXPENSES DRIVEN BY NON-OPERATING EFFECTS in EUR m 30.06.20 30.06.19 Change Personnel Expenses 18.6 12.9 44.2% Share-based remuneration (*) 10.1 6.0 68.3% adjusted Personnel Expenses 8.5 6.9 23.2% Other operating expenses 6.7 3.2 109.4% ```` IPO expenses 3.1 0.0 n.a. adjusted Other Operating Expenses 3.6 3.2 12.5% EBITDA -15.0 -5.2 n.m. Share-based remuneration expenses 10.1 6.0 68.3% IPO expenses 3.1 0.0 n.m. adj. EBITDA -1.8 0.8 n.m.
remuneration scheme.

• (*) Expenses for share-based remuneration were up by +EUR 4.1m to EUR 10.1m, driven by the share-based remuneration scheme for management and employees.

```` • Pre-IPO, existing shareholders transferred altogether 881.7k shares (without receiving any proceeds) to Exasol which were provided to cover the management's share-based remuneration scheme.

• Excluding the effects of the the share-based remuneration scheme, personnel expenses were up by +23.2%, mainly related to a higher average number of employees in 1H20 compared to 1H19.
• Adjusted Other Operating Expenses (excluding IPO expenses) were up by EUR 0.4m due to higher IT and recruiting costs.

IPO PROCEEDS OF EUR 48.5M IMPROVE BALANCE SHEET QUALITY SUBSTANTIALLY Assets 30 June 20 in% of T. Assets 31 Dec 19 in% of T.

QUALITY SUBSTANTIALLY						IPO PROCEEDS OF EUR 48.5M IMPROVE BALANCE SHEET
Assets	30 June 20	in% of T. Assets	31 Dec 19	in% of T. Assets	Change
Fixed Assets	8.0	15.8%	7.9	25.3%	1%
Current Assets	42.1	83.2%	2.7	8.5%	1459%	proceeds of EUR 48.5m.
Prepaid Expenses Deficit not covered by	0.5	1.0%	0.5	1.6%	0%
equity Total Assets	0.0 50,6	n.m. 100%	20.5 31,6	64.9% 100%	n.m. 60%
Equity and Liabilities	30 June 20	in% of T. Assets	31 Dec 19	```` in% of T. Assets	Change	Assets, net cash at 40.1m).
Equity	22.9	45.3%	-20.5	-64.9%	n.m.
Deficit not covered by equity	0.0	0.0%	20.5	64.9%	n.m.	6.7m; share price EUR 11.2)
Resolved capital increase	0.0	0.0%	8.5	26.9%	n.m.
Liabilities	20.3	40.1%	18.9	59.8%	7%

				````
				Assets	Change
Deficit not covered by equity	0.0	0.0%	20.5	64.9%	n.m.
Resolved capital increase	0.0	0.0%	8.5	26.9%	n.m.
Liabilities	20.3	40.1%	18.9	59.8%	7%
Deferred income	7.4	14.6%	4.2	13.3%	76%
Total Equity and Liabilities	50.6	100%	31.6	100%	60%

• Major changes relate to the IPO which included an equity increase with gross proceeds of EUR 48.5m. Change
• As of end of June 20, total assets stood at EUR 50.6m and equity ratio was at 45.3%.
• Gross cash was at EUR 40.2m (79% of Total Assets, net cash at 40.1m). Change
• 596.7k own shares (value 30.06.2020: EUR 6.7m; share price EUR 11.2)

OUTLOOK

• Exasol expects to reach an Annual Recurring Revenue (ARR) of more than EUR 24m in 2020 implying an ARR growth of >36% compared to 2019.
• ```` • The ARR for 2020 is calculated by multiplying the expected MRR (Monthly Recurring Revenue) in December 2020 by 12. Recurring Revenue have a subscription-based character and a contract duration of at least > 12 months.
• Exasol intends to accelerate ARR growth in 2021 by (1) increasing revenue at existing customers, (2) regional expansion especially in the U.S. and (3) increasing its market share in DACH and the U.K.

THANK YOU FOR YOUR ATTENTION

INVESTOR RELATIONS CONTACT

Jochen Reichert Stefanie WInkler ir@exasol.com +49 (0) 911 2399114

Exasol AG Neumeyetstr. 22-26 90411 Nuermberg