Pexip Holding

Investor Presentation • May 12, 2022

Quarterly Presentation Q1 2022

May 12, 2022

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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.

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Pexip at a glance

2011 Company founded

550 Employees in 34 countries

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 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)

• 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 & durability
• Ideal for new applications of video in sectors such as healthcare, video banking and virtual courts

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

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

Q1 highlights and key areas of focus

• ARR up 21% y-o-y to USD 106 million
• Revenue up 24% y-o-y to NOK 223 million

• Quarterly actual delta ARR of USD -0.8 million and underlying USD 1.2 million

Growth y-o-y Growth Q1 Results & cash

• EBITDA of NOK -52 million or negative 23% margin

• Extraordinary high cash outflow due to share buyback and portfolio purchases

• Strong momentum for Secure Spaces

• Continue to win in Public Sector segment

• Closed first customers through Microsoft Azure marketplace

• Key focus going forward on accelerating return to profitability

• Target positive EBITDA Q4 and FY 2023

Sales update Focus and target Organization & costs

• Organization to be adjusted and right-sized to realize growth opportunities and reduce overall cost level
• Improvement program initiated

Q1 2022 Sales Development

21% y-o-y increase in Annual Recurring Revenue

USD million

• ARR of USD 105.6 million at the end of Q1 2022
  • USD 0.8 million below Q4 2021
• Underlying ARR is USD 1.2 million higher, adjusting for negative USD 2.0 million one-off booking from change in pricing model with a single partner contract
  • Expect this change to drive more than USD 4 million ARR growth during 2022

• Continued positive development on churn

– At 9.2% p.a. compared to 9.7% p.a. at the end of last quarter

• Lack of acceleration on new sales and lower upsell due to:

• Strategic re-focus to three core solution areas in early stage of execution
• Lack of hardware endpoint deliveries to customers delaying projects
• Lower net upsell due to strong growth in capacity last two years
• Limited impact of situation in Ukraine ⁹

New customers represent the main driver for ARR growth

• Sales to new customers continue to be main driver behind growth, in line with previous period
• Improved churn at 9.2% in line with trend over last quarters
• Lower ARR net retention due to lower net upsell driven by change in partner pricing model (USD -2 million) and excess capacity due to lower than planned video room usage

New win: Central European Ministry of Justice

• Pexip is providing a secure meeting platform to a Central European Ministry of Justice
• The solution is to be deployed as an on-premise installation with the Pexip Infinity platform at the core
• Pexip was chosen for its data privacy and interoperability capabilities for a range of different video systems

Future opportunity to expand into court hearings, with Pexip's recently launched Virtual Courts solution

Upsell: US Department of Veterans Affairs

Video Innovation for healthcare, judiciary, government, retail and finance

• Chose Pexip for custom development and branding options
• 97% YOY Growth on Pexip platform
• 2.3M Veterans served via Pexip (FY21)
• 9.5M Video Telehealth Calls (FY21)

New win: DLA Piper

Connected Spaces

including interoperability to Microsoft Teams and Google Meet

• DLA Piper is a global law firm with lawyers located in more than 40 countries throughout the Americas, Europe, the Middle East, Africa and Asia Pacific, positioning us to help clients with their legal needs around the world
• The customer chose Pexip to enable high-quality interoperability with Teams, and its cloud-based video endpoint infrastructure, in close partnership with Microsoft
• Pexip is delivering its cloud-based Enterprise Room Connector through its partner NTT, a global technology and business solutions provider

New win: Västra Götaland Region

• This Swedish municipality has approximately 55,000 employees with over 550 dedicated videoconferencing systems
• They chose Pexip for applications in all 3 solutions areas, including Microsoft Teams interoperability (Connected Spaces), confidential meetings (Secure Spaces) and integration with their healthcare journal system (Video innovation)

Launched Pexip Engage

Video Innovation

• Key solution in the Video Innovation space
• Launch completes Skedify acquisition from Q4 2021
• Already gaining traction with customers, building on established Skedify customer base

Q1 2022 Financial Results

Q1 2022 Financial results

Profit and Loss Comments

NOK million

P&L item	Q1 2021	Q1 2022	Development Percent
Revenue	179.7	222.5	24%
Cost of sale	15.0	25.8	72%
Salary and personell expenses	175.6	188.1	7%
Other operating expenses	42.4	60.4	42%
EBITDA	-53.1	-51.8	-2%
Depreciation and amortization	16.9	23.3	38%
Operating loss	-70.0	-75.1	7%

• 24% increase in year-on-year revenue in line with ARR increase
• Increased Cost of Sale from increased cloud service share of revenues, in addition to strengthening the robustness of the service platform
• Lower growth in employee benefit expenses, in part to normalization of share option related costs compared to the high level in Q1 2021
• EBITDA in line with Q1 2021 in NOK, 7 p.p. improvement in EBITDA margin

+24% revenue increase in line with ARR development

Self-hosted Software

29%

20%

Quarterly revenue development

NOK million

(3%)

Comments

Pexip as-a-Service Operating revenues – Pexip as-a-Service

• Overall growth of 29% year-on-year to NOK 93 million
• Development in line with ARR development

Operating revenues – Self-hosted Software

• Overall increase of 20% year-on-year to NOK 129 million
• Software revenue mainly recognized at time of delivery, which leads to quarterly variations in revenue recognition. This drives seasonal variation of software revenue

Gross margin

• Gross margin in line with Q2 and Q3 2021, while below Q4 2021 due to lower self-hosted software revenues
• Higher usage of video meeting rooms contributing to higher cost of goods sold

Increase in operating expenses from higher headcount and activity level

Flat development in EBITDA - focus going forward on return to profitability

Cash flow from investing activities per quarter Comments Significant investments in sales-related headcount, impacting EBITDA

NOK million

• Gross margin growth of NOK 32 million
• Growth in OPEX of NOK 31 million due to headcount growth and activity increase
• Improved EBITDA-margin

Last-twelve-month EBITDA of NOK -123 million (-14% margin)

Extraordinary high cash outflow due to share buyback and portfolio acquisitions

Cash flow bridge Q1 2022

NOKm

Comments

• Operational cash flow of negative NOK 31 million driven by a negative EBITDA with a seasonal improvement in working capital
• Extraordinary non-recurring cash outflow of NOK 147 million in Q1
• Share buyback of NOK 88 million in March 2022
• Portfolio buyback announced in Q4, as well as final settlement on 2020 Videonor portfolio acquisition of combined NOK 59 million
• Share buy-back cover expected exposure for share-based incentives for next two years without further dilution

Current cash reserves considered sufficient to drive growth and return to profitability

Outlook

CEO observations

• The pandemic has changed the market landscape and created both challenges and new opportunities for Pexip
• Pexip has a robust strategy coupled with a strong and differentiated market position
• Pexip needs to adapt its organization to be able to better execute on the defined strategy, capitalize on the identified growth opportunities and reduce the overall cost level
• We need to increase focus and efforts within high-growth opportunities and at the same time reduce costs in other areas
• We will return to profitable growth, a formula that has been followed successfully in the past
• We will provide more details in the Q2 presentation in August

Outlook

• Significant ARR growth potential next three years and beyond through executing on focused strategy to be a leader in core solution areas and market segments; total market potential of USD 5 billion
• Target reducing overall cost level to accelerate return to profitability
• Return to ARR growth expected in Q2 2022 at a level in line with Q1 underlying growth
• Targeting positive EBITDA in Q4 2022 and for the full year 2023

Upcoming dates

AUG 11	Half-yearly Report and Presentation
NOV 10	Q3 2022 Report and Presentation
FEB 14	Q4 2022 Report and Presentation

Appendix

Balanced growth across geographies and products

USD million YoY growth: 17% 28% 22% ^{49 52 55 57 58 29 32 35 39 38} 9 9 9 10 10 87 Q1 2021 Q2 2021 Q3 2021 Q1 2022 106 Q4 2021 93 100 106 +21% APAC AMERICAS EMEA

ARR per geo ARR per product

USD million

Large organizations is the largest growing segment

Large organizations driving growth

Share of ARR by account size in ARR, USD

Åsmund?

Significant market potential in core solution areas