Exasol AG — Investor Presentation 2022

Aug 17, 2022

Investor Call on H1 2022

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

August 17, 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 H1 2022

(unaudited)

ARR: 32.5m€

(+26%)

Revenue: 16.1m€ (+23%)

Adj. EBITDA: -6.0m€ (H1 2021: -15.5m€ L4L*)

Liquid Funds: 19.3m€ (Dec 31, 2021: 27.2m€)

• ARR and Revenue clearly up against same period last year

• Double digit growth in ARR in every quarter since IPO
• 14 new customer wins in H1 from various industries, broadening future upselling basis
• Significant improvement of profitability as a result of increased topline and improved cost structure
• Use of liquid funds in line with expectations
• Good pipeline development indicating accelerated ARR growth in H2 2022
• Net Revenue Retention remains on a high level showing no significant impact from macro economic environment
• Long term growth drivers are intact
• Outlook confirmed

Outlook 2022+ (unchanged)

• 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

Increasing footprint in key verticals

New customers in 2022 (examples)
Financial	Multinational banking Corp., EMEA Central
services	Global finance and Insurance Corp., EMEA Central	• Increasing footprint in Financial Services, Healthcare and Logistics
Real Estate	Multi-billion residential developer, EMEA Central	• EMEA Central still the largest contributor to new ARR • Positive pipeline trend in the US
Transport& Logistics	Fast growing terminal operator, EMEA Central	• Decision makers overall acting more carefully in the current market environment
Healthcare	Leading German healthcare service provider., EMEA Central

Update on Go-to-Market Organization

Global Alliances and Partners

• Gartner Symposium Orlando On stage – 10m playoff
• AWS re:Invent LasVegas Launch Yotilla – Native support for AWS Redshift
• Rebuilding of major global partner recruitment campaign and program overall

Update on Product and Go-to-Market

Good progress on key efficiency projects

Opportunity-to	Standardize Salesforce implementation and include CPQ
Cash	capability
Customer Service	Move Customer Service to Service Cloud and integrate with Salesforce O2C for end-to-end view on customer journey
Procure-to-pay	Implementation of dedicated tool support to minimize process cycle time while maintaining governance/control
Server	Consolidate own server infrastructure; prepare and execute
infrastructure	own journey into cloud/hybrid setup

EXASOL VISION

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

Financial Results H1 2022

by Jan-Dirk Henrich, CFO

ARR development 2021/22

In EUR million, # of customers

Unaudited figures

Comments

• Overall performance shows typical seasonal pattern
• 14 new customers added in H1, 2 customers lost
• Net upselling still dominant growth driver in H1, in line with historical pattern
• As expected, impact of SaaS-Introduction not material yet

ARR growth H1 2022 – By type

In EUR million, # of customers

Unaudited figures

Comments

• Gross ARR retention rate at 123% (vs. 115% in PY)
• Net ARR retention rate at 119% (vs. 110% in PY)
• ARR churn rate at 4% (vs. 6% in PY)
• Customer churn rate at 4% (vs. 7% in PY)

* At comparable FX rates and methodology

ARR growth H1 2022 – 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

P&L 2021/22 by quarter

In EUR million, in percent

Unaudited figures

	Q2 2022	Q2 2021	Change	H1 2022	H1 2021	Change
Revenue	8.4	6.9	+22%	16.1	13.1	+23%
- thereof recurring revenue	8.1	6.0	+35%	15.1	12.0	+26%
- thereof non-recurring revenue	0.3	0.9	-67%	1	1.1	-9%
Gross Profit	7.8	6.1	+28%	15.0	12.5	+20%
Personnel expenses (adj.)	-7.0	-10.4	-33%	-14.6	-17.2	-15%
Training and Recruiting	-0.1	-0.7	-71%	-0.3	-1.2	-75%
Marketing	-1.5	-3.0	-50%	-3.2	-5.1	-37%
IT infrastructure	-0.3	-0.4	-25%	-0.6	-0.7	-14%
Others (adj.)	-1.1	-1.6	-31%	-2.3	-2.6	-12%
Total Costs (adj.)	-10.0	-16.0	-38%	-21.0	-26.9	-22%
EBITDA (adj.)	-2.2	-9.9	-78%	-6.0	-14.4	-58%
EBITDA (adj. w/o own work)	-2.2	-10.4	-79%	-6.0	-15.5	-61%

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 H1 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

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
Adj. EBITDA**	-31.6 m€	-14 to -16 m€	injection • 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 * Average Annual Revenue (Subscriptions) / Average Annual Consumption (Consumption based pricing) programs

** Excluding effects from pre IPO stock programs

Financial Calendar 2022

by Jan-Dirk Henrich, CFO

Financial calendar 2022

	February 16	FY 2021 Preliminary Results (unaudited) Webcast & Roadshow
	May 18	FY 2021 (audited) & Q1 2022 trading update Webcast & Roadshow
	June 1	Virtual Capital Markets Day 2022
	July 6	Annual General Meeting
2022	August 17	H1 2022 report Webcast & Roadshow
	September 20	Roadshow Paris
	November 16	Q3 2022 trading update Webcast & Roadshow
	November 17	Warburg Conference, Berlin
	November 28/29	Equity Forum, Frankfurt

Thank You

Copyright © 2022 Exasol. All rights reserved.