EXASOL H1 2021 RESULTS

Earnings Call H1 2021 Results

September 21, 2021

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, as well as growing the business internationally

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

Topics for today

-

Outlook
4. Q&A

Business Performance H1 2021

by Aaron Auld, CEO

H1 2021 Overview

FINANCIALS

ARR growth of +27.4% YoY to 26.5m EUR
Revenue growth of +29.7% YoY to 13.1m EUR
Adjusted EBITDA* of (14.1) €m vs. (1.8)m EUR in H1 2020
Liquid funds of 46.6m EUR as of end June 2021

IN SUMMARY

Exasol continues to grow by every metric
Clear progress in all areas, including ability to win large international organizations
SaaS on AWS (Exasol Cloud Performance Data Warehouse) ready for phased market release
Cloud elasticity for Google and Microsoft (Q1/22)
DWH automation project on track (H1/22)
GTM teams and processes still forming
New experienced leadership team in place
Focus on GTM execution

^* Adjusted by expenses from capital measures and obligations from share-based remuneration

Recap: Strategic goals for 2021

> +45%

ARR Outlook

> EUR 35 million

ARR Outlook

KEY PRIORITIES 2021

1. Build out go-to-market machine
1. Create unique performance brand
1. Phased rollout of Cloud Performance DWH
1. Prepare DWH Automation for market launch
1. Build and professionalize 300+ person organization

ARR development lower than expected, but stable outlook for FY21

KEY DRIVERS

Extended time-to-close for major customer projects (partly driven by COVID)
Delayed go-to-market ramp-up
Data-volume based model preventing faster adoption

OUTLOOK Q3/Q4

Strong pipeline of possible deal closures by year-end
Historically strong Q4 business
Outlook of >35 €m ARR by year-end maintained

Recent customer wins

	Exas ol de live re d 10 0 x pe rformance incre as e ove r le gacy s ys te m
	Us e d for financial re porting, cre dit rating, 3 60 ° cus tome r vie w. Re place d 20 TB Oracle s ys te m with option to e xpand to 50 - 10 0 TB
German Company with International Activities	BI Acceleration for online DWH. Performance is business critical with fast-growing data volumes
	Exas ol- bas e d s e lf-s e rvice re porting s ave s 3 6 hours pe r month compare d to le gacy s ys te m
Multinational In Chemical Industry	Exas ol e nable s fas t data dis cove ry and "fre e s tyle analytics " on mas s financial data curre ntly re s iding in SAP BW on HANA and Hadoop

Grow with our customers – increase the install-base

Strong retention and growth numbers with existing customers

Customer lifecycle retention geared towards long-term relationships and mutual trust
Customer churn –3% ARR. 97% renewal rate exemplifying indicator in the industry
Evolving data strategies and performance requirements drove average >19% growth YoY with existing customers

Accelerating Amazon AWS Partnership

Building The Global Marketing Engine in 2021

BUILD THE GTM MACHINE

Collaboration with leading full-service digital marketing agency to drive and deliver successful digital campaigns
Hired specialized marketing talent to manage process and adopt know-how
Optimizing our digital presence and SEO

DRIVE LEADS NOW

Digital Marketing 2.0 with first set of endto-end campaigns, connecting across integration partner, tech partners and customer landscape
Step-up Account Based Marketing: driving direct customer and sales engagement
Partner with Sales and Partner teams to align on short- to long-term campaigns and offerings to drive strong Marketing Qualified Leads (MQLs)

OPTIMIZE FOR FY2022

Execute website optimization roadmap to further enable best site experiences, allow for more cost-efficient leads driven by digital marketing campaigns and effective top of the funnel conversions with SaaS and product trials
Continue to sharpen focus on specific verticals and sub-verticals
Align joint approach with key partners (AWS, System Integrators, Google Cloud, etc.)

Continued coverage: (i) focused campaigns around BI Acceleration; ii) Industry Focus on Retail, FSI, Utilities, and Healthcare; iii) Diverse local, regional, and global Field Marketing Events

The making of a compelling brand

Focused earned brand credibility

5 well-received industry thought leadership initiatives launched in 2021
77% increase in global press coverage year over year
Increased Share of Voice in online media in one year from 3% to 9%
Share of Voice is ahead of SAP Hana and MemSQL (SingleStore)
119% increase in organic social media engagement on LinkedIn

DFB Technology partnership

In 2020 Exasol became strategic technology partner of the German Football Association (DFB)
Exasol on Amazon AWS outperformed all competition (Google, Oracle, and Snowflake)
Jointly DFB, business partner Areto, and Exasol have implemented the "Global Database for German Football"
DFB & Exasol partnership provides promotional rights for building brand awareness and direct marketing

Current European champion with a fast growing audience and

rising followers

High brand visibility with strong media

impact

The sleeping giant awakes with Exasol by his side

Solidified market position via analyst validation

Forrester moved Exasol from contender to strong Performer in the latest Forrester Wave™: Cloud Data Warehouse, Q1 2021
BARC graded Exasol as top ranked on Performance and Platform Reliability
Continuous favorable market position with Dresner, G2 and Gartner. With Dresner continuing to position as top-performing Credibility Leader
New release Exasol 7.1 once again outperforms all competitors in latest TPC-H 2021 (V3) benchmark reaching 22.664.825 queries per hour

Exasol Cloud Performance Data Warehouse aaS

Phased Launch beginning end of Q3

Exasol Cloud Performance DWH provides a new strategic growth platform to extend Exasol's existing volume-based model for faster adoption. This offering will kickstart Exasol's move towards a unique and comprehensive business model for evolving data strategies

Q3 2021 – 29th of September

• Private offer for existing customers and partners only

Q4 2021

• Full public availability with fully automated onboarding and self-service

Q1 2022

Bold competitive offers to gain net new customers
Enhance customer experience through continuous development
Provide bridge to AWS Cloud aaS capabilities

Supporting growth through process and operations

Achieved key security and quality ISO certifications with top results. Auditors found no gaps and had zero objections
Professionalized employee onboarding, training and built new Sales Academy from ground up to accelerate know-how transfer for sales teams and ensure consistent messaging
Launched enhanced customer support program adding new tiers for increased customer satisfaction
U.S. support team footprint increased to enable direct coverage in U.S. time zone plus more comprehensive global support

ISO Certifications ISO/IEC 27001 and ISO 9001 successfully completed

"Whenever I run into a problem their customer service is always prompt and open about discussing and acting on it if it makes sense."

CSR & ESG activities significantly strengthened

CSR activities

2019 & 2020 Carbon Neutrality stamp
Diversity & Inclusion Training & Education
I Am Change Sustainability initiative
Data Literacy Non-Profit Sponsorship
UN Global Compact initiative Q4

ESG reporting

New Investor Relations Webpage
Expanded ESG scope in financial reports
Ongoing dialogue with Rating Agencies

Headcount up 29%, driven by sales & marketing

KEY OBJECTIVES

Continued focus on shaping an organization for sustainable growth
Recruiting in 2021 highly focused on required key skills
Further ramp-up will be based on progress on ARR

Financial Results H1 2021

by Jan-Dirk Henrich, CFO/COO

H1 2021 Financial Highlights

Revenue growth of 30% YoY
Adjusted EBITDA* of (14.1)m EUR vs. (1.8)m EUR in H1 2020
Adjusted Operating Cashflow* of (11.5)m EUR vs. (1.7)m EUR in H1 2020
Available liquid funds of 46.6m EUR at end H1 2021
Equity ratio stays at >50%

* Adjusted by expenses from capital measures and obligations from share-based remuneration

Revenue by Region in €m

COMMENTS

Stable revenue growth of 30% YoY
Continued strong performance in core market DACH
Delayed growth acceleration in strategic target markets US and UK

Adjusted EBITDA of (14.1) €m in H1 2021

Adjustments

Profit and loss	H1 2021	H1 2020
Revenue	13.1	10.1	2.0
thereof recurring revenue in %	92%	91%	1%pt
Other operating income	0.5	0.2	0.3
COGS	(1.7)	(1.0)	(0.7)
Operating gross profit	11.9	9.3	2.6
Margin	91%	92%	(1%pt)
Capitalized own work	1.2	0.9	0.3
OPEX	(27.7)	(25.3)	(2.4)
EBITDA	(14.6)	(15.0)	0.4
Margin	(112%)	(148%)	36%pt
Depreciation	(1.3)	(1.0)	(0.3)
Financial result	(0.1)	(0.2)	0.1
Taxes	(0.2)	(0.0)	(0.2)
Net loss	(16.2)	(16.2)	0.0

Adjusted EBITDA	H1 2021	H1 2020
EBITDA	(14.6)	(15.0)	0.4
+ share-based remunerations	0.5	10.1	-
+ expenses for capital measures	0.0	3.1	-
Adjusted EBITDA	(14.1)	(1.8)	(12.3)
Margin	(108%)	(18%)	(90%pt)

Increase in adj. Opex driven by personnel & marketing

Adjusted Operating Cash flow of (11.5) €m

	H1 2020
Net loss	(16.2)	(16.2)	0.0

Operating cash flow	(20.2)	(4.8)	(14.4)
Investing cash flow	19.0	(1.2)	20.2
- thereof operational assets	(2.6)	(1.2)	(1.4)
- thereof financial assets	21.6	0.0	21.6
Financing cash flow	(0.1)	47.9	(48.0)

Net increase/decrease in cash	(1.3)	41.9	43.2

	Adjusted operating cash flow	H1 2021	H1 2020
	Operating cash flow	(20.2)	(4.8)	(14.4)
Adjustments	+ cash flow from share based remunerations	7.2	0.0
	+ cash flow for expenses from capital measures	1.5	3.1
	Adj. Operating cash flow	(11.5)	(1.7)	(9.8)

Liquid funds of 46.6 €m and Equity ratio of 52%

In €m	H1 2021	2020
Fixed assets	9.0	7.7	1.3
Current assets and prepaid expenses	52.1	74.4	(22.3)
Liquid funds	46.6	69.5	(22.9)
In % of total assets	76%	85%	(9%pt)

Equity	32.0	48.3	(16.3)
In % of total assets	52%	59%	(7%pt)
Provisions	17.8	27.2	(9.4)
Liabilities and deffered taxes	3.1	2.3	0.8
Deferred income	8.1	4.4	3.7
Total assets and liabilties	61.0	82.1	(21.1)

Overall CFO/COO priorities and focus of first 100 days

Internal IR capabilities strengthened with new Head of IR

15 years of IR experience in SDAX and TecDAX listed companies, including:

Head of Investor Relations signed

last week, will join Jan. 1, 2022

… 9 years in corporates with growth-driven equity stories

… 2 years in B2B software environment

Remaining financial calendar 2021

Trading Statement 9M 2021 4 Nov 2021

Deutsche Börse Eigenkapitalforum Analyst Conference 24 Nov 2021 | Frankfurt am Main

Outlook