Pexip Holding

Investor Presentation • Nov 28, 2024

Pexip Video Meeting Software Solutions

Company Presentation, Pareto TechSaaS November 28, 2024

Presenting from Pexip

Trond K Johannessen CEO

Software only specialist video conferencing player

Pexip's two business areas

Pexip Connected Spaces

Video meeting room interoperability

Pexip Secure & Custom Spaces Video meetings that are self-hosted on-premises or in a private cloud

Our vision is to connect any meeting room to any video meeting Connected Spaces

Pexip has a strong market position in a growing market

Video device growth expected to drive TAM growth

Pexip with leading Technology Solutions

Partnerships underline market position

HSBC is a typical Pexip customer Connected Spaces

CONNECT FOR ZOOM ROOMS PRODUCT

Key winning USPs

• Significantly improved experience on two-screen systems
• Support for in-room sharing
• Easier user experience

Secure & Custom market opportunity

• 50% of European CXOs see data sovereignty as a top issue
• 44% of European enterprises plan to move to sovereign cloud in the next 2 yrs.
• 30% growth in private clouds
• 137+ countries have enacted some form of data protection and sovereignty laws

Secure & Custom

Secure meetings are often used as a parallel solution to the Global SaaS services

Secure & Custom

Pexip Secure Meetings have tailored security and privacy functionality

• Tailored user Authentication
• Meeting classification labelling

• Full control over where data is stored

Customer use-case: European government

JC	K)	Cl	>	V
File	Meeting		Scheduling Assistant			Forma Insert
	لان			S		C	N
Delete		Teams Meeting v		Sensitive Meeting	Highly Confidential		Send to OneNote
Actions		Teams Meeting				Meeting	OneNote

Secure Meetings as a parallel solution PRODUCT

Use case

Pexip was selected by the IT provider of a European Government to provide a secure video platform to operate side-by-side with Teams for specific use-cases and individuals, operating with two different security levels.

Meeting and Gateway services designed to ensure sovereignty, resilience, access control and the highest interoperability

Secure & Custom

Private AI for Secure Meetings launched in Q4 through NVIDIA partnership

• Private deployment with complete data control
• Customer-specific language libraries
• Built on NVIDIA AI models

Growth driving improved financial performance

Total ARR USDm

Adjusted EBITDA¹ NOKm, Last twelve months Free Cash flow² NOKm, Last twelve months

Legacy

Underlying ARR

1 EBITDA less Other gains and losses 2 Operating cash flow, investment cash flow and leases

Subscription-based revenue model with total ARR base at USD 110m in Q3 2024

Revenue growth and cost control increasing profits

Stable operating expenses

Quarterly OPEX development

NOK million

Delta vs Q3 2023 NOK Million

Salary and personnel expenses

Other operating expenses Share option related costs

16

NOK 209 million in free cash flow last twelve months, up NOK 140 million from previous period

Cash flow bridge LTM Q3 2024

NOK million

• Above 100% conversion from EBITDA to free cash flow
• Disciplined approach to capital expenditure – main driver is internal software development
• Paid first-time dividend in 2024, 107% of 2023 free cash flow
  • Have a cash distribution policy of distributing 50-100% of free cash flow through dividends or stock buybacks

Industry partnerships continue to be a key part of our strategy

Outlook

• Continued positive market outlook across the business areas
• Strong market position and industry partnerships are expected to continue to drive growth
• Q4 2024 ARR expected 111-114 USD millions

2024 outlook

• 8-11% ARR growth
• 17-20% EBITDA¹

2025+ targets

Consistently deliver:

• Above 10% ARR growth
• Above 20% EBITDA¹

Thank you

Investor.pexip.com IR@Pexip.com