Exasol AG

Investor Presentation • Nov 30, 2022

Investor Call on 9M 2022

November 30, 2022

Copyright © 2022 Exasol. All rights reserved.

Disclaimer

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. These 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.

The information in this presentation as well as the Forward-looking Statements are of preliminary and abbreviated nature and may be subject to updating, revision and amendment, and such information may change materially. Neither Exasol AG nor any of its directors, 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.

Today´s Speakers

Jan-Dirk Henrich, CFO/COO and Speaker of the Executive Board

Volker Smid, Chairman of the Supervisory Board

Summary of key points

FINANCIALS 9M 2022

(unaudited)

ARR: 33.9m€ (+23%)

Revenue: 24.8m€ (+28%)

Adj. EBITDA: -8.7m€ (9M 2021: -24.8m€ L4L*)

Liquid Funds: 16.9m€ (Dec 31, 2021: 27.2m€)

• ARR and Group Revenue clearly up against last year´s period despite some macroeconomic headwinds
• 18 new customer wins in 9M 2022 and roughly 60 existing customers upselling their contracts
• Profitability continues to improve as a result of higher sales and better cost discipline
• Liquid funds at end of period slightly better than expected with sufficient headroom to fund further growth
• Net Revenue Retention remains on a high level demonstrating strong position of Exasol in their customers' IT environment
• Despite difficult market environment, long term growth drivers remain intact
• Outlook 2022 adjusted 2025 targets unchanged

Outlook 2022 (adjusted)

35.5 to 37.0 m€ (previously: 38.5 to 40.0 m€)

-13 to -14 m€ (previously: -14 to -16 m€)

11 to 13 m€ (previously: 10 to 12 m€)

Midterm target of 100m€ ARR/ACC in the course of 2025 unchanged

ARR development by quarter 2021/2022

In EUR million*, # of customers

Unaudited figures

Comments

• Overall performance shows typical seasonal pattern
• 18 new customers added till End September 22, 7 customers lost
• Net upselling still dominant growth driver ytd, in line with historical pattern
• As expected, impact of SaaS-Introduction not material yet

*At comparable FX rates and methodology

Increasing footprint in key verticals

ARR development by region

In EUR million

Exasol tops competition in BARC's Survey 23 (TOP5)

Our growth path continues – with rising profitability

In EUR million

Comments

• Continued strong growth momentum over the past quarters
• Defensive business model since Exasol is a vital part of their customers IT infrastructure
• Even in a challenging macroeconomic environments growth patterns remain robust
• Q4 as historically the strongest quarter of the year still outstanding
• Adj. EBITDA shows major improvements over the last quarters
• Profitability in the second half 2023 within reach

Update on key initiatives

Go-to-Market	Product	Operational Efficiency
• Onboarded Inside-Sales Team of 6 contractor FTE to accelerate lead-nurturing and pipeline conversion • Crucial positions in Regional Sales team filled with capable candidates (total of 10 new account execs onboarded in Q3), strengthening our GTM thrust • Redesigned website as crucial landing point for SaaS to go live early Q1	• Release of next version of SaaS product based on initial customer feedbacks and experiences in Q1 • Autonomous insights product in preparation for early-access program starting in Q1 • Campaign launched to migrate remaining perpetual licence customers to new v8 core product until end 2023	• Oder-to-cash - New end-to-end process support for Sales from quotation to invoicing – Go Live January • Service Cloud - Salesforce integrated solution for customer service– Go-Live November • Procure-to-Pay - New procurement tool and process to optimize spend and increase ease-of-use – Go-Live December

EXASOL VISION

Be the performance analytics platform trusted by the world's most ambitious organizations.

Financial Results 9M 2022

ARR growth LTM - By type

In EUR million*, # of customers

Unaudited figures

Comments

• Gross ARR retention rate at 121% (vs. 121% in PY)
• Net ARR retention rate at 116% (vs. 117% in PY)
• ARR churn rate at 4% (vs. 4% in PY)
• Customer churn rate at 5% (vs. 6% in PY)

ARR growth LTM - By geography

In EUR million*, # of customers

Unaudited figures

Comments

• Central EMEA still dominant driver for ARR growth
• Significant new customer growth contribution by EMEA North and Emerging Markets already today
• Expansion of growth contribution from US market key focus of reorganized go-to-market efforts

*At comparable FX rates and methodology

Revenue and Cost Development

		Change	9M 2022	9M 2021	Change
	6.3	+38%	24.8	19.4	+28%
8.0	6.2	+29%	23.1	18.1	+28%
0.7	0.1	+600%	1.7	1.3	+31%
8.2	6.4*	+28%	23.2	18.9*	+23%
-7.1	-9.7	-27%	-21.7	-26.9	-19%
-0.2	-0.4	-50%	-0.5	-1.6	-69%
-1.8	-3.4	-47%	-5.0	-8.5	-41%
-0.4	-0.4	0%	-1.0	-1.1	-9%
-1.5	-1.3	+15%	-3.8	-3.9	-3%
-10.9	-15.1	-28%	-31.9	-41.9	-24%
-2.7	-8.7	-69%	-8.7	-23.0	-62%
-2.7	-9.2	-71%	-8.7	-24.8	-65%
	8.7

* incl. capitalized own work

Headcount development by quarter

In # of people

Comments

• Major re-organization in Q4 2021 focused on U.S. and UK organizations
• Final re-organization measures completed in Q1 2022 with focus on Central EMEA
• Personnel is managed flexibly in line with overall top-line growth to maintain pathway to breakeven

EBITDA to cashflow reconciliation 9M 2022

In EUR million

Unaudited figures

Liquid Funds and adj. EBITDA

In EUR million

Unaudited figures

* incl. short term financial assets

** excl. non-recurring effects from pre-IPO stock programs and costs of equity increase

Adjusted financial outlook 2022

	2021	2022 (old)	2022 (new)	2023-25
ARR/AAC*	30.5 m€	38.5 to 40.0 m€ (at constant currency)	35.5 to 37.0 m€ (at constant currency)	• 100m EUR ARR/AAC* in
Adj. EBITDA**	-31.6 m€	-14 to -16 m€	-13 to -14 m€	the course of 2025 without further equity injection • Operating profitability in
Liquid Funds (year end)	27.2 m€	10 to 12 m€	11 to 13 m€	the second half of 2023
* Average Annual Revenue (Subscriptions) / Average Annual Consumption (Consumption based pricing)			Incl. 2.7 m€ of XO cash out for pre IPO stock programs

** Excluding effects from pre IPO stock programs

Update on Management

New CEO coming in January 2023

Jörg Tewes, incoming CEO

• Appointment effective January 1, 2023
• Contract will run until December 31, 2025
• Located at Exasol headquarter in Nuremberg

Experience

• Technology industry veteran with more than 30 years of experience in bringing innovative products to market and driving growth in the US and Europe
• Held positions at Amazon, Avegant, Logitec etc.
• P&L responsibility of up to \$250 M
• Last position: senior leadership role at Amazon, driving the development and commercialization of its tablet, e-reader and video communication technologies
• 15 years with different US companies in San Francisco
• Experience in leading companies from venture funding to IPO
• Serves as angel investor and mentor to technology start-ups
• Degree in Computer Science from the Technical University of Berlin

Thank You

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