SUSE S.A. — Earnings Release 2022

Jan 19, 2023

All USD \$m unless otherwise stated FY22 YoY Actual YoY ACV 138.3 125.0 11% 16% 535.9 ARR (as of July 2022) 645.8 574.9 12% 645.8 Adjusted Revenue 170.3 154.0 11% 12% 657.8 Adjusted EBITDA 65.9 48.0 37% 17% 241.9 Adjusted EBITDA Margin 39% 31% 37% Adjusted uFCF 43.9 54.8 (20)% 187.7

Net Cash Inflow From Operating Activities 42.1 37.0 14% 147.2

All USD \$m unless otherwise stated FY22 YoY Actual FY22 Revenue 169.6 151.8 12% 653.0 559.5 Cost of sales (13.0) (11.2) 16% (51.8) (43.2) Gross profit 156.6 140.6 11% 601.2 516.3 Operating expenses (111.8) (126.3) (11)% (448.6) (564.2)

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Amortization of intangible assets	(34.5)	(30.9)	12%	(142.0)	(142.0)
Depreciation - PPE	(1.0)	(1.1)	(9)%	(3.8)	(4.5)
Depreciation - Right of Use Assets	(1.4)	(1.9)	(26)%	(7.3)	(6.5)
Operating profit/(loss)	7.9	(19.6)	n.m.	(0.5)	(200.9)
Net finance costs	(10.0)	(20.8)	(52)%	(40.7)	(58.9)
Share of losses on associate	(0.6)	(0.5)	20%	(2.3)	(2.1)
Loss before tax	(2.7)	(40.9)	(93)%	(43.5)	(261.9)
Taxation	2.6	3.3	(21)%	4.0	54.3
Loss for the period	(0.1)	(37.6)	(100)%	(39.5)	(207.6)

ARR (as at July) 645.8 574.9 12% 645.8 NRR as % (as at July) 106.2% 110.7% (4)% 106.2%

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Sales, Marketing & Operations	45.1	45.7	(1)%	8%	179.4
Research & Development	26.0	24.8	5%	15%	107.2
General & Administrative	20.6	24.7	(17)%	(4)%	78.4
Total Operating Expenses	91.7	95.2	(4)%	7%	365.0
Adjusted EBITDA	65.9	48.0	37%	17%	241.9
Adjusted EBITDA Margin	39%	31%			37%
Depreciation & Amortization	5.0	5.4	(7)%		21.3
Adjusted EBIT	60.9	42.6	43%		220.6
Net Finance Costs	10.0	20.8	(52)%		40.7
Adjusted Profit before Tax	50.9	21.8	133%		179.9
Notional Tax	8.1	Not Reported			45.3
Adjusted Profit after Tax	42.8	Not Reported			134.6
Number of Shares	169.3	168.4	1%		169.2
		Not Reported			0.80 1.02

FY21

FY21

FY21

FY21

All USD \$m unless otherwise stated FY22 YoY Actual FY22 End User 126.2 112.6 12% 462.1 413.8

IHV/Embedded 12.1 12.4 (2%) 73.8 Total ACV 138.3 125.0 11% 535.9 490.6

All USD \$m unless otherwise stated FY22 YoY Actual FY22

Europe, Middle East and Africa 56.3 49.9 13% 216.0 210.6 North America 57.9 50.6 14% 229.4 194.1

Asia Pacific and Japan 10.8 11.4 (5%) 39.3 Greater China 8.7 8.8 (1%) 29.5 Latin America 4.6 4.3 7% 21.7
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All USD \$m unless otherwise stated FY22 YoY Actual FY22 Adjusted EBITDA 65.9 48.0 37% 241.9 212.1 Adjusted EBITDA Margin 39% 31% 37% 37% Change in deferred revenue 14.1 3.7 281% 53.3 66.1 Adjusted Cash EBITDA 80.0 51.7 55% 295.2 278.2 Adjusted Cash EBITDA Margin 47% 34% 45% 48%

All USD \$m unless otherwise stated FY22 YoY Actual FY22 Adjusted Cash EBITDA 80.0 51.7 55% 295.2 278.2

Gross tangible capital expenditure (3.4) (2.7) 26% (10.6) (4.8) Change in core working capital (15.1) 21.8 n.m. (42.3) (20.0) Commissions paid (net of amortization) (12.7) (11.2) 13% (31.3) (36.8)

Leases paid (2.1) (1.2) 75% (7.8) (6.6) Cash taxes (2.8) (3.6) (22)% (15.5) (8.0)

Adj uFCF Conv from Adj EBITDA 67% 114% 78% 94%

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All USD \$m unless otherwise stated	FY22	FY21	YoY Actual
	End Q4	End Q4
Net Debt	557.7	720.5	(23)%
Adjusted Cash EBITDA - Pro-forma - LTM Q4	295.2	278.2	6%
Leverage	1.9	2.6	(27)%

March 16, 2023 Release of Q1 FY23 results March 23, 2023 Annual General Meeting July 6, 2023 Release of Q2 FY23 results

All USD \$m unless otherwise stated FY22 Revenue - IFRS 169.6 151.8 12% Contract liability haircut amortized 0.7 2.2 (68)% Pro-Forma Rancher 0.0 0.0 -

Adjusted Revenue 170.3 154.0 11%

Q4

Q4

Full Year

Q4

Full Year

Q4

Share-based payments - charge 14.4 9.1 58%

Share-based payments - ER taxes 0.5 0.0 n.m.

Foreign exchange - unrealized 3.0 4.0 (25)%

Adjusted EBITDA - Non pro-forma 65.9 48.0 37%

Q4

Q4

Full Year

All USD \$m unless otherwise stated FY22 Operating profit/(loss) - IFRS 7.9 (19.6) n.m. Adjustments Depreciation and Amortization 36.9 33.9 9% Separately reported items 0.0 12.8 n.m. Contract liability haircut amortized 0.7 2.2 (68)% Non-recurring items 2.5 5.6 (55)%

Pro-forma Rancher 0.0 0.0 n.m. Adjusted EBITDA - pro-forma 65.9 48.0 37% All USD \$m unless otherwise stated FY22 Change in deferred revenue: Pro-forma (14.1) (3.7) 281% Pro-forma Rancher 0.0 0.0 n.m. Change in deferred revenue: Non Pro-forma (14.1) (3.7) 281%

https://www.eqs-news.com/ (0.7) (2.2) (68)% (14.8) (5.9) 151%
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	Deferred revenue haircut amortized
	Change in deferred revenue - IFRS
	Net cash inflow/(outflow) from operating activities	42.1	37.0	14%
	Interest paid	8.6	7.1	21%
	Tax paid	2.8	3.6
(22)%	Cash generated from operations
53.5 47.7 12%

Cash generated from operations 53.5 47.7 12% Addbacks - non cash items (60.6) (53.7) 13% (242.2) Movements - other working capital 10.2 (26.5) n.m. Movement in other pensions (0.1) (0.7) (87)%

Adjusted Unlevered Free Cash Flow 43.9	54.8	(20)%
Cash taxes (2.8) Other adjustments - Rancher pro-forma 0.0	(3.6) 0.0	(22)% n.m.	(15.5)
Gross capital expenditure (3.4)	(2.7)	26%	(10.6)
Change in core working capital (15.1)	21.8	n.m.	(42.3)
Leases paid (2.1)	(1.2)	75%
Commissions paid (net of amortization) (12.7)	(11.2)	13%	(31.3)
Adjusted Cash EBITDA (SUSE & Rancher pro-forma) 80.0	51.7	55%
Change in deferred revenue 14.1	3.7	281%
Adjusted EBITDA (SUSE & Rancher pro-forma) 65.9	48.0	37%
Pro-forma Rancher 0.0	0.0	n.m.
Adjusted EBITDA 65.9	48.0	37%
Foreign exchange - Unrealized 3.0	4.0	(25)%
Contract Lliability haircut amortized 0.7	2.2	(68)%
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		FY21	YoY Actual
	Full Year	Full Year
Working Capital Movements - IFRS
Movements in trade receivables	(19.9)	(20.6)	(3)%
Movements in other receivables	(0.7)	(0.6)	17%
Movements in trade payables	4.1	4.8	(15)%
Movements in other payables	(32.7)	12.4	n.m.
Total Working Capital Movements - IFRS	(49.2)	(4.0)	1130%

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(10.5)	(67)%
0.0	n.m.
(6.2)	n.m.
0.7	n.m.
(16.0)	n.m.
(20.0)	112%
	Q1
	119.9
	23.9
	143.8
	98.7 26.3 125.0

Core 118.6 121.4 133.2 133.4 130.2 Emerging 15.5 15.4 17.8 20.6 24.8

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General & Administrative	11.8	19.8	19.8	24.7	20.9
Total Operating Expenses	65.3	78.1	84.2	95.2	90.9
Adjusted EBITDA	60.7	48.2	55.2	48.0	52.3
Adjusted EBITDA Margin	45%	35%	37%	31%	34%
Change in deferred revenue	46.4	6.2	9.8	3.7	40.8
Adjusted Cash EBITDA	107.1	54.4	65.0	51.7	93.1

Annual Contract Value or ACV	represents the first 12 months value of a contract. If total contract duration is less than 12 months, 100% of invoicing is included in ACV.
Annual Recurring Revenue or ARR	represents the sum of the monthly contractual value for subscriptions and

	recurring elements of contracts in a given one month period, multiplied by 12. ARR is calculated three months in arrears, given backdated royalties relating to IHV and Cloud Service Providers, and hence reflects the customer base as of three months prior.
Adjusted Cash EBITDA	represents Adjusted EBITDA plus changes in contract liabilities (also referred to as deferred revenue) in the related period and excludes the impact of contract liabilities haircut (also referred to as deferred revenue haircut).
Adjusted Cash EBITDA Margin	expressed as a percentage, this APM represents Adjusted Cash EBITDA divided by Adjusted Revenue.
Adjusted Gross Profit	represents Adjusted Revenue less cost of sales adjusted for non-recurring items.
Adjusted Gross Profit Margin	expressed as a percentage, this APM represents Adjusted Gross Profit divided by Adjusted Revenue.
Adjusted Earnings per share	represents Adjusted Profit after Tax divided by the weighted average number of ordinary shares in issue during the period.
Adjusted EBITDA	represents earnings before net finance costs, share of loss on associate and tax, adjusted for depreciation and amortization of intangible assets, share- based payments, contract liabilities haircut, separately reported items, specific non-recurring items and net unrealized foreign exchange (gains)/losses.
Adjusted EBITDA Margin	expressed as a percentage, this APM represents Adjusted EBITDA divided by

	Adjusted Revenue.
Adjusted Effective Tax	represents the IFRS effective tax rate adjusted for the tax effect of adjusting items (those items adjusted for to arrive at Adjusted Profit before Tax).
Adjusted Profit before Tax	represents Adjusted EBITDA, less depreciation and amortization (excluding intangible amortization for customer relationships, intellectual property and non-compete agreements) less net finance costs.
Adjusted Profit After Tax	represents Adjusted Profit before Tax less notional average taxes.
Adjusted Revenue	represents Revenue as reported in the statutory accounts of the Group, adjusted for contract liability fair value adjustment (also referred to as deferred revenue haircut).
Adjusted unlevered Free Cash Flow or Adjusted uFCF	represents Adjusted Cash EBITDA less tangible capital expenditure related cash outflow, working capital movements (including commissions paid net of amortization of contract-related assets and excluding non-recurring items), cash taxes paid and leases paid.
Cash Conversion	expressed as a percentage, this APM represents Adjusted uFCF divided by Adjusted EBITDA.
Contractual Liabilities and Remaining Performance Obligations or "RPO"	a Contract Liability is an entity's obligation to transfer goods or services to a customer and is recognized in the Statement of Financial Position, when a payment from a customer is invoiced, before a related performance obligation is satisfied. A remaining performance obligation is a promise to transfer goods or services to a customer (with a

	contract agreed), at a point in the future, but is yet to be invoiced or recognized in the Statement of Financial Position.
Leverage	expressed as a multiple, Leverage is Net Debt divided by Adjusted Cash EBITDA.
Net Debt	represents the sum of current and non- current interest bearing borrowings (excluding un-amortized capitalized arrangement fees, gains or losses on loan modifications), current and non- current lease liabilities, less cash and cash equivalents.
Net Retention Rate or NRR	expressed as a percentage, NRR indicates the proportion of ARR that has been retained over the prior 12-month period, which is inclusive of up-sell, cross-sell, down-sell, churn and pricing. It excludes ARR from net new logo End user customers. The NRR is calculated three months in arrears, aligned to the calculation of ARR.
Notional Tax	represents total income tax charge/credit for the year less the taxation charge/credit associated with adjusting items (those items adjusted for to arrive at Adjusted Profit before Tax).

Company:	SUSE S.A.
	11-13 Boulevard de la Foire
	1528 Luxembourg
	Luxemburg
ISIN:	LU2333210958
WKN:	SUSE5A
Indices:	SDAX, TecDAX
Listed:	Regulated Market in Frankfurt (Prime Standard); Luxembourg Stock Exchange
EQS News ID:	1538479

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