Exasol AG — Call Transcript 2022

May 18, 2022

Investor Call on 2021 FY audited and 2022 Q1 figures

Aaron Auld (CEO), Jan-Dirk Henrich (CFO)

May 18, 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.

• CEO at Exasol AG since July 2013
• Responsible for the strategic direction of the company, communications as well as key business relationships

Aaron Auld, CEO Jan-Dirk Henrich, CFO/COO

• CFO/COO at Exasol AG since September 2021
• Responsible for finance related departments including Accounting, Controlling, Legal/Compliance and Investor Relations as well as Human Resources and Internal IT

Summary of key points

FINANCIALS Q1 2022

(unaudited)

ARR: 31.5m€

(+29%)

Revenue: 7.7m€ (+25%)

Adj. EBITDA: -3.8m€ (Q1 2021: -5.1m€ L4L)

Liquid Funds: 26.6m€ (Dec 31, 2021: 27.2m€)

• Audited FY 2021 results in line with preliminary figures
• Q1 2022 results with clear improvement in both top line and profitability
• Seasonally slower start to the year, ARR still up 28.5% with 5 new customer wins, continued improvements in churn and net revenue retention
• Saas product launched in Feb., range of potential customers in trial phase, first customers for pre-commit bookings
• Limited direct impact from sanctions against Russia on existing business
• Ongoing high customer interest and pipeline, but partly more careful decision-making as result of macro-economic situation

Outlook 2022+

• ARR/AAC to grow to 38.5 to 40.0m EUR at constant FX in 2022
• Adj. EBITDA to improve significantly to -14 to -16m EUR
• Liquid Funds to stand at 10 to 12m EUR end of 2022
• Operating cash break-even to be reached in the course of 2023
• ARR/AAC to grow to 100m EUR in the course of 2025 without further equity injection

EXASOL VISION

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

Technology to Solution

Underlying strengths Providing Solutions

Dominate the high performance enterprise analytics market

• ➢ Industry-leading performance
• ➢ Superior cost vs performance
• ➢ Sustainable energy footprint
• ➢ Linear scalability
• ➢ Platform independence
• ➢ Ease of use
• ➢ Provide bridge to the Cloud
• ➢ Self-service analytics platform
• ➢ Operationalized ML/AI
• ➢ End-to-end data solutions
• ➢ Data observability platform
• ➢ Automated DWH

On track in delivering product roadmap

Ongoing deepening of partner ecosystem

• Silent launch in Q1
• > 70 customer registrations
• 20 customers in active trials
• First pre-commit customers signed
• Broad Marketing Launch in Q2

Elastic Consumption

Pay As You Go (PAYG)

Planned Consumption

Prepaid Credits

Go-to-Market Strategy

Key Regions	Sales	Marketing	Internal Processes
North America	• Adjustments in Sales organization • Move from product selling	• Persona oriented & audience-centric focus
EMEA North & Emerging Markets	to outcome led sales • Scale through regional and global partners, enablers and strategic alliances	• Integrated Market Communications • Campaigning and strategic events • Smart Content	• Integrated Customer Service • Salesforce & CPQ system • Procure-to-pay optimization
EMEA Central	• OEM / 3rd-Party Licensing + partnerships	• Referenceable Outcome based Evidence

While we continue to make good progress in ARR growth and efficiency improvement, ongoing measures will build an even more powerful sales & marketing organization.

Financial Results 2021 (audited)

by Jan-Dirk Henrich, CFO

Results 2021 FY – Preliminary vs Audited

In EUR million, in percent

	FY 2021 audited	FY 2021 preliminary	Δ	FY 2021 audited	FY 2020 audited	Δ%
Revenue	27.5	27.5	-0.0	27.5	23.6	16.5
thereof recurring	24.8	24.8	-0.0	24.7	19.0	30.0
thereof non-recurring	2.8	2.8	-	2.8	4.6	-40.0
Capitalized own work	2.2	2.3	-0.1	2.2	1.9	16.7
Gross Profit	26.5	26.6	-0.1	26.5	22.3	19.0
Gross Profit Margin	96.5%	96.8%	-0.3ppt	96.5%	94.4%	-
Personnel expenses (adj.)	-37.8	-37.4	-0.4	-37.8	-21.7	74.2
Other income/expense (adj.)	-20.3	-20.1	-0.2	-20.3	-9.3	>100
Total Costs (adj.)	-58.1	-57.5	-0.6	-58.1	-31.0	87.6
EBITDA (adj.)	-31.6	-30.9	-0.7	-31.6	-8.7	>-100
EBITDA Margin	-115.1%	-112.3%	-2.8ppt	-115.1%	-36.8%	-
EBITDA reported	-25.7	-25.0	-0.7	-25.7	-30.0	-14.3

Main adjustments

• Minor adjustments in recognized revenue
• Slightly lower capitalization of own work
• Increased Personnel expenses due to higher accruals for personnel expenses (bonus, holiday)
• Increased Other Costs due to selective write-offs and adjusted currency conversion costs

Results 2021 FY – Quarter-by-Quarter

In EUR million, in percent

Incl. 1.2 m€ severance payments

	Q1 2021	Q2 2021	Q3 2021	Q4 2021	FY 2021	FY 2020
Revenue	6.1	6.9	6.3	8.1	27.5	23.6
Gross Profit	6.4	6.1	6.4	7.7	26.5	22.3
Personnel expenses (adj.)	-6.8	-10.4	-9.7	-10.5	-37.8	-21.7
Training and Recruiting	-0.5	-0.7	-0.4	-0.3	-1.9	-1.3
Marketing	-2.1	-3.0	-3.4	-2.4	-10.9	-3.7
IT infrastructure	-0.4	-0.4	-0.4	-0.3	-1.4	-1.3
Others (adj.)	-1.0	-1.6	-1.3	-2.0	-6.0	-3.0
Total Costs (adj.)	-10.9	-16.0	-15.1	-15.6	-58.1	-31.0
EBITDA (adj.)	-4.5	-9.9	-8.7	-8.6	-31.6	-8.7
Prelim. EBITDA (adj.)	-4.3	-10.1	-8.7	-7.9	-30.9	-8.7

Financial Results 2022 Q1

by Jan-Dirk Henrich, CFO

ARR development 2021/22

In EUR million, # of customers

Unaudited figures

Comments

• Overall comparable Q1 performance vs 2021, with typical seasonal pattern
• 5 new customers added in Q1, 2 customers lost
• Net upselling still dominant growth driver in Q1, in line with historical pattern
• Impact of SaaS-Introduction expected to take shape in H2 2022

ARR growth Q1 2022 – By type

In EUR million, # of customers

Comments

• Gross ARR retention rate at 125% (vs. 122% in PY)
• Net ARR retention rate at 121% (vs. 115% in PY)
• ARR churn rate at 4% (vs. 7% in PY)
• Customer churn rate at 5% (vs. 7% in PY)

* At comparable FX rates and methodology

ARR growth Q1 2022 – By geography

In EUR million, # of customers

Comments

• GTM activities steered in new regional divisions
• Central EMEA still dominant driver for growth, both in terms of upselling and new customers
• Significant new customer growth contribution by EMEA North and Emerging Markets already today
• Expansion of growth contribution from US market key focus of re-organized goto-market efforts

* At comparable FX rates and methodology

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 baseline for growth plans in 2022/23 established

P&L 2021/22 by quarter

In EUR million, in percent

	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q122 vs Q121	Q122 vs Q421
Revenue	6.1	6.9	6.3	8.1	7.7	+25%	-5%
Gross Profit	6.4	6.1	6.4	7.6	7.2	+12%	-5%
Personnel expenses (adj.)	-6.6	-10.6	-9.7	-10.9	-7.6	+12%	-30%
Training and Recruiting	-0.5	-0.7	-0.4	-0.3	-0.1	-75%	-53%
Marketing	-2.1	-3.0	-3.4	-2.4	-1.7	-21%	-30%
IT infrastructure	-0.4	-0.4	-0.4	-0.3	-0.3	-19%	-12%
Others (adj.)	-1.0	-1.6	-1.3	-2.2	-1.2	+25%	-43%
Total Costs (adj.)	-10.7	-16.2	-15.1	-16.1	-11.0	+1%	-32%
EBITDA (adj.)	-4.5	-9.9	-8.7	-8.6	-3.8	+15%	+56%
EBITDA (adj. w/o own work)	-5.1	-10.4	-9.2	-9.0	-3.8	+26%	+58%

Change in Liquid Funds by quarter In EUR million

Liquid Funds* Changes in liquid funds excluding XO**

* incl. short term financial assets

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

Financial outlook 2022: Stable growth at significantly improved operating leverage

	2021	2022	2023-25
ARR/AAC*	30.5 m€	38.5 to 40.0 m€ (at constant currency)	• 100m EUR ARR/AAC* in the course of 2025 without further equity injection
Adj. EBITDA**	-31.6 m€	-14 to -16 m€	• Stable growth in 2022/23 with acceleration in 2024/25
Liquid Funds (year end)	27.2 m€	10 to 12 m€	• Operating cashflow break even in the course of 2023
Incl. 2.7 m€ of XO cash-out for pre IPO stock programs Average Annual Revenue (Subscriptions) / Average Annual Consumption (Consumption based pricing) * Excluding effects from pre IPO stock programs 22

Financial Calendar 2022

by Jan-Dirk Henrich, CFO

Financial calendar 2022

Capital Markets Day 2022

You are cordially invited to our first Capital Markets Day 2022

Key Data

• Date: June 1, 2022, 14 CEST
• Speakers: Aaron Auld (CEO), Donald Kaye (CCO), Mathias Golombek (CTO), Jan-Dirk Henrich (CFO)
• Duration: appr. 2,5h
• Format: virtual

Agenda

• Trusted by the world's most ambitious organizations– Update on Group Strategy Presentation Aaron Auld, CEO
• Executing Growth – Our Go-to-market approach Presentation Donald Kaye, CCO
• Why performance matters - Product Roadmap Presentation Mathias Golombek, CTO
• From the CFOs desk – mid-term targets, revenue and earnings potentials Presentation Jan-Dirk Henrich, CFO
• Q&A and wrap up

Change in Supervisory Board

ISS ESG rating updated

Key findings by ISS ESG

• Social and Employee related topics as well as Environmental Management get consistent high ratings
• Improvement potentials in governance and sustainability reporting

Actions initiated to further improve rating:

• Further improve governance (competency profile and diversity of supervisory board, transparency on management compensation)
• Increase transparency on sustainability through dedicated sustainability report

Thank You

Copyright © 2022 Exasol. All rights reserved.