Pexip Holding

Investor Presentation • Nov 1, 2022

Pareto TechSaaS conference

November 01, 2022

Important notice and disclaimer

These materials have been produced by Pexip Holding ASA (the "Company", and with subsidiaries the "Group"). The materials have been prepared for the exclusive use of persons attending an oral briefing and meeting to which these materials relate given by a representative of the Company and/or persons to whom these materials have been provided directly by an authorized representative of the Company (the "Recipients"). For purposes of this notice, "materials" means this presentation, its contents and appendices and any part thereof, any oral presentation and any question or answer session during or after or in relation to any of the foregoing.

The materials are for information purposes only, and do not constitute or form part of any offer, invitation or recommendation to purchase, sell or subscribe for any securities in any jurisdiction and neither the issue of the information nor anything contained herein shall form the basis of or be relied upon in connection with, or act as an inducement to enter into, any investment activity. The materials comprise a general summary of certain matters in connection with the Group, and do not purport to contain all of the information that any recipient may require to make an investment decision. Each recipient should seek its own independent advice in relation to any financial, legal, tax, accounting or other specialist advice.

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Pexip at a glance

2011 Company founded

300+ Partners in 75 countries

4,400 Enterprise and public sector customers

\$106 million Annual Recurring Revenue 2021

Challenger in Gartner Magic Quadrant¹ Strong Position in Frost & Sullivan FrostRadar²

1) Gartner Quadrant for Meeting Solutions 2021, by Mike Fasciani, Tom Eagle, Adam Preset, Brian Doherty 2) Source: Frost & Sullivan, Frost Radar for Cloud meetings and Team Collaboration Services 2021, January 2022

Pexip is on a transformation journey back to a focused technology company

Pexip has a unique patented core technology platform

Core transcoding architecture

• Processing happens in the network and not on the device
• Facilitates interoperability across platforms and devices
• Works well with devices that run on batteries or have limited processing capacity (thin clients)

Self-hosted and cloud-hosted capabilities

• Enables complete control of data & business continuity
• Perfect for organizations with a need to bypass the internet or operate with a sovereign cloud

Built as a platform: Highly customizable

• Enables complete customization
• Ideal for new applications of video in sectors such as healthcare, video banking and virtual courts

~50 patents

Pexip's focused and clearly differentiated approach addresses a massive market opportunity

Pexip is focused on addressing customer needs in three core solution areas

Secure Spaces

When complete privacy and control over data is required

Target customers:

Connected Spaces

When you have several video solutions that need to work together

Target customers:

Video Innovation

When an embedded or custom video solution is required

Target customers:

7

Productization of our offering

Connected Spaces

Enterprise Room Connector for Microsoft Teams

Bring the Microsoft Teams experience to any meeting room, enabling easyto-join and manage meetings for everyone.

Enterprise Room Connector for Google Meet

Connect any non-Google room system to Google Meet to bring the same easy-to-join and manage meeting experience to everyone.

Enhanced Room Management

Manage many meeting rooms from a single interface – serving as your onestop-shop for branding, software upgrades and system health checks.

Secure Spaces

Secure Meetings

Keep your mission-critical communication secure with our private and customizable meeting platform with flexible deployment.

Secure Collaboration

Power secure, on-premises communication including chat, file sharing and video with Pexip and Rocket.Chat.

Business Continuity

Set up the ultimate back-up for times of disaster recovery or temporary failure of other collaboration tools. Pexip delivers secure and scalable communication you can count on.

Video Innovation

Video Technology Platform • Create custom workflows with frictionless in-app video using our industry-proven and developerfriendly platform (VPaaS).

• Video Technology Licensing to

offerings

organizations for inclusion in their

Build-your-own solutions Ready-made solutions

Engage

Connect prospects, customers and clients to the best-suited agent in a brandable engagement tool that features smart scheduling and CRM integrations.

Virtual Courts

Virtualize courtroom operations for efficient, cost-effective hearings that mimic in-person court proceedings.

Connected Spaces

• Connected Spaces has a large market potential
• Pexip has a unique product, as well as the only solution that enables a user experience mirroring using Teams
• Partnership with Microsoft and Google puts us in a position to stay ahead

Pexip bridges the gap between different technologies

4+ million

video systems

270+ million

Teams users

Pexip Connected Spaces allows enterprises to simplify video collaboration while reducing cost and waste

Best Microsoft Teams interop user experience

• Enables you to bring Teams to every meeting room
• Seamless, intuitive experience

• Familiar meeting features

• Reduce costs on expensive video infrastructure

• Postpones investments into new video hardware when moving to a new video platform

Cost savings Sustainability and easy user adoption

• Users can continue to use existing video hardware to join their video meeting of choice – no need for training
• Maintaining existing hardware longer reduces eWaste and carbon footprint

Unique technology makes Pexip a preferred partner for the leading collaboration platforms

Sole interoperability provider for

Microsoft certification for

One of four certified providers for

Secure Spaces

• Secure Spaces covers a large and growing market driven by the global situation and cyber trends
• Pexip has unique solutions the only modern on premise solution with full interoperability capabilities on the market today
• Several recent customer wins supporting Pexip momentum

Security is becoming top of mind

Geopolitical Complexity

Cyber Vulnerability

"Attacks on organizations in critical infrastructure sectors have increased dramatically, from less than 10 in 2013 to almost 400 in 2020 — a 3,900% change."

• Gartner

• Many organizations are prohibited from using cloud solutions

• Business continuity and redundancy solutions are becoming top of mind
• Increased awareness in both public and private sector

Virtual Meeting Room Experience: Only modern on-premise option

TRUSTED SECURE

On-premise solution

Enables complete control of data & business continuity

Secure and highly private solution

Enable added layer of security with embedded identity control methods

Interoperable and future-proof

FLEXIBLE

Enables a seamless user experience between people, technologies and services

Collaboration solution hosted onpremise, in private cloud and/or public cloud

Pexip's technology uniquely suited for flexible deployment

Interoperability capabilities enable flexible use of secure meeting platform also for connecting to other meeting services

Public and private sector organizations increasingly require such solutions

15

Pexip is finding great success in ultra secure meetings segment through our unique on-premise solution

Americas use cases:

Deliver ultra-secure and highly private platforms to the military and government

FedRamp certified to deliver a US sovereign cloud service

EU use cases:

Deliver ultra-secure and highly private platforms to the military and government

We provide large enterprises with high-security meetings to protect e.g., industry secrets, M&A, call records

15-25% work in public sector in the OECD

APAC use cases:

Deliver ultra-secure and highly private platforms to the military and government

Video Innovation

• Large and growing market driven by technology enabled innovations in work-flows and processes
• Pexip technology provides unique advantages in building custom video solutions
• Certified platform
• Interoperability
• Flexible deployment
• Several new key partnerships underpin the market opportunities

Pexip Video Innovation is focused around enabling companies to offer customized video solutions

Digitize your organization's services to improve efficiency and accelerate growth

Build trust with patients and citizens

Improve customer service

Optimize customer engagement with the right experience for each and every conversation

Create custom workflows with frictionless in-app video using our industry-proven and developer-friendly platform (VPaaS)

Expand offerings by applying custom-built solutions into dayto-day business operations …

Pexip integrates video into other solutions

… or by applying ready-made solutions to facilitate a concrete gap in current offerings

Pexip is creating an eco system driving video innovation

Launched last week! developer.pexip.com community.pexip.com

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A singular entry point for all internal & external stakeholders to see what integrations have been done around Infinity.

Existing & prospective customers, SPs, partners of all shapes and sizes

Who?

Showcase the development Pexip & the partner community have done to further vertical value

devs to talk to devs

What?

Developers, customers, partners who want to extend the Infinity platform

A developer-focused repository to include internal & external development; a forum to allow

Our APIs & SDKs provide unique value for devs to create something great; this portal gives them a home

Pexip Marketplace Developer Portal Developer Community

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Sales & Financials

Flat development in Annual Recurring Revenue so far in 2022

USD million

• ARR of USD 106.1 million at the end of Q2 2022
• USD 0.5 million above Q1 2022
• Lower new sales and upsell due to:
• Continued competition in Connected Spaces, and continued 3rd party supply chain problems delaying projects
• Lower net upsell due to strong growth in capacity last two years

Year-to-date growth in Secure Spaces and Video Innovation

16 18 19 21 21

2021 Q4

2021 Q3

2022 Q1

+2

2022 Q2

USD million

Secure Spaces Video Innovation (CPaaS)

2021 Q2

• Continue strong growth in Secure Spaces and Video Innovation
• USD 2.8 million of ARR growth in total across the two areas in Q2
• Stable development in Connected spaces over the last three quarters, which is the main driver for lower growth overall compared to 2021
• Legacy areas continue to reduce in line with expectations

Q2 2022 Financial results

Profit and Loss Comments

NOK million

P&L item	LTM'22	LTM'21	Change Percent
Revenue	866.1	722.1	20%
Cost of sale	95.9	63.5	51%
Salary and personnel expenses	702.4	572.2	23%
Other operating expenses	247.9	154.7	60%
Restructuring costs	26.8	0	n.a.
EBITDA	-206.8	-68.3	-14 p.p.1
EBITDA excluding restructuring costs	-180.1	-68.3	-11 p.p.1

• 20% increase in Q2 LTM year-on-year revenue in line with ARR increase driven by Pexip-as-a-Service
• Increased Cost of Sale from increased cloud service share of revenues, in addition to strengthening the robustness of the service platform
• Continued growth in employee benefit expenses following growth in employees
• Restructuring impact will be seen from Q3 2022
• Significantly lower EBITDA in Q2 LTM 2022, also impacted by restructuring costs of NOK 27 million, of a total of NOK -206.8 million

On the path to EBITDA-positive run-rate, and cash flow positive run-rate after Q1 2023

Cash flow from investing activities per quarter Comments Cost reduction program

Q2 estimated cost savings, NOK million, annualized

• Communicated after Q2:

• Phase 1 of the cost reduction program is completed, and the plans for the subsequent phase 2 is set
• Substantial realized impact seen already, with additional savings to be realized gradually over the next few quarters as long-term contracts reach termination
• Plans in place for additional NOK 100+ million in savings to support run-rate cash flow positive operations out of Q1 2023

Update on cost initiatives and financial targets to be given in Q3 presentation November 10th

Summary & Outlook

Return to profitability

• Rapid return to profitability and profitable growth is #1 priority
• Ahead of plan for EBITDA neutral operations for Q4 and the full year 2023, and plans in place for cash positive run rate exiting Q1 2023
• Current cash reserves considered sufficient to drive growth and return to profitability/positive cash-flow

ARR development

• Continued good underlying momentum for Secure Spaces and Video Innovation
• Pexip distinctive technology and unique selling point provide strong basis for strengthened growth in these areas

Partnerships / customer relations

• Strategic partnerships within Connected Spaces develop positively, but supply chain issues and overcapacity continue to impact sales performance in the short term