SUSE S.A. — Interim / Quarterly Report 2023

Mar 16, 2023

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EQS News – Financial News & Events Directly From The Source				https://www.eqs-news.com/de/
All USD \$m unless otherwise stated	FY23	FY22	YoY Actual	YoY
	Q1	Q1		CCY
Non-IFRS measures
ACV	147.0	143.8	2%	5%
ARR (as at October 31)	654.6	590.5	11%
Adjusted Revenue	169.0	155.0	9%	10%
Adjusted EBITDA	67.1	52.3	28%	20%
Adjusted EBITDA Margin	40%	34%
Adjusted uFCF	73.5	44.6	65%
IFRS measures
Revenue	168.4	153.5	10%
Gross Profit	154.8	141.7	9%
Operating Profit Before D&A	71.0	35.4	101%
Net Cash Inflow From Operating Activities	58.2	26.1	123%

All USD \$m unless otherwise stated	FY23	FY22	YoY Actual
	Q1	Q1
Revenue	168.4	153.5	10%
Cost of sales	(13.6)	(11.8)	15%
Gross profit	154.8	141.7	9%
Operating expenses	(83.8)	(106.3)	(21)%
Amortization of intangible assets	(34.1)	(36.3)	(6)%
Depreciation - PPE	(1.0)	(0.9)	11%
Depreciation - Right of Use Assets	(1.4)	(1.6)	(13)%
Operating profit/(loss)	34.5	(3.4)	n.m.
Net finance costs	(14.7)	(11.6)	27%
Share of losses on associate	(0.9)	(0.9)	0%
Profit/(loss) before tax	18.9	(15.9)	n.m.
Taxation	(12.7)	3.1	n.m.
Profit/(loss) for the period	6.2	(12.8)	n.m.

				https://www.eqs-news.com/de/
All USD \$m unless otherwise stated	FY23	FY22	YoY Actual	YoY
	Q1	Q1		CCY
ACV by Solution
Core	118.5	119.9	(1)%	1%
Emerging	28.5	23.9	19%	21%
Total ACV	147.0	143.8	2%	5%
ARR (as at October 31)	654.6	590.5	11%
NRR (as at October 31)	105.1%	110.9%	(5)%
Adjusted Revenue by Solution
Core	137.5	130.2	6%	6%
Emerging	31.5	24.8	27%	28%
Total Adjusted Revenue	169.0	155.0	9%	10%
Adjusted Cost of Sales	13.4	11.8	14%	19%
Adjusted Gross Profit	155.6	143.2	9%	9%
Adjusted Gross Profit Margin	92%	92%
Sales, Marketing & Operations	42.0	43.0	(2)%	2%
Research & Development	28.0	27.0	4%	9%
General & Administrative	18.5	20.9	(11)%	(7)%
Total Operating Expenses	88.5	90.9	(3)%	2%
Adjusted EBITDA	67.1	52.3	28%	20%
Adjusted EBITDA Margin	40%	34%
Depreciation & Amortization	4.8	5.0	(4)%
Adjusted EBIT	62.3	47.3	32%
Net Finance Costs	14.7	11.6	27%
Adjusted Profit before Tax	47.6	35.7	33%

				https://www.eqs-news.com/de/
	31.7	25.6	24%
Adjusted Profit after Tax Basic number of Shares	169	169	0%
EQS News – Financial News & Events Directly From The Source Basic Adjusted Earnings Per Share	0.19	0.15	27%

All USD \$m unless otherwise stated	FY23	FY22	YoY Actual
	Q1	Q1
End User & Cloud	126.2	122.5	3%
		21.3	(2)%
IHV & Embedded	20.8

All USD \$m unless otherwise stated	FY23	FY22	YoY Actual
	Q1	Q1
Europe, Middle East and Africa	67.7	67.7	0%
North America	55.4	55.8	(1)%
Asia Pacific and Japan	9.5	9.5	0%
Greater China	6.3	6.6	(5)%
Latin America	8.1	4.2	93%
Total ACV	147.0	143.8	2%

EQS News – Financial News & Events Directly From The Source			https://www.eqs-news.com/de/
All USD \$m unless otherwise stated	FY23	FY22	YoY Actual
	Q1	Q1
Adjusted EBITDA	67.1	52.3	28%
Adjusted EBITDA Margin	40%	34%
Change in Deferred Revenue	2.5	40.8	(94)%
Adjusted Cash EBITDA	69.6	93.1	(25)%
Adjusted Cash EBITDA Margin	41%	60%

EQS News – Financial News & Events Directly From The Source			https://www.eqs-news.com/de/
All USD \$m unless otherwise stated	FY23	FY22	YoY Actual
	Q1	Q1
Adjusted Cash EBITDA	69.6	93.1	(25)%
Gross tangible capital expenditure	(2.4)	(2.0)	20%
Change in core working capital	16.1	(34.5)	n.m.
Commissions paid (net of amortization)	(5.1)	(5.1)	0%
Leases paid	(2.0)	(1.9)	5%
Cash taxes	(2.7)	(5.0)	(46)%
Adjusted uFCF	73.5	44.6	65%

All USD \$m unless otherwise stated FY23

		FY22	YoY Actual
	End Q1	End Q1
Net Debt	534.9	689.1	(22)%
Adjusted Cash EBITDA (LTM)	271.7	264.2	3%
Leverage	2.0	2.6	(25)%

Three months ended 31 January 2023

items

Separately reported

Total

Headline

Operating profit/(loss) before depreciation/impairment and amortization 75,927 (4,912) 71,015

Amortization of intangible assets (34,108) - (34,108) Depreciation – Property, plant and equipment (1,030) - (1,030) Depreciation/impairment – Right of use assets (1,353) - (1,353)

Financial Calendar
Date	Event
March 23, 2023	Annual General Meeting
July 6, 2023	Release of Q2 FY23 results
Casterator -- 74 7000	Delece - E O 7 FV/27 - - - - - - - - - - - -

Income statement:

US\$'000 US\$'000 US\$'000 Revenue 168,383 - 168,383 Cost of sales (13,600) - (13,600) Gross profit 154,783 - 154,783 Selling and distribution costs (42,103) (4,912) (47,015) Research and development costs (28,815) - (28,815)

Administrative expenses (7,911) - (7,911) Reversal of impairment loss on trade receivables (27) - (27)

EQS News – Financial News & Events Directly From The Source			https://www.eqs-news.com/de/
Finance costs	(15,381)	-	(15,381)
Finance income	614	-	614
Net finance costs	(14,767)	-	(14,767)
Share of losses of associate	(908)	-	(908)
Profit/(loss) before tax	23,761	(4,912)	18,849
Taxation	(13,878)	1,218	(12,660)
Profit/(loss) for the period	9,883	(3,694)	6,189
Attributable to:
Equity shareholders of the parent	9,883	(3,694)	6,189
Non-controlling interests	-	-	-
Profit/(loss) for the period	9,883	(3,694)	6,189
Basic earnings/(loss) per share (USD/share)			0.04
Diluted earnings per share (USD/share)			0.04

reported items Total

US\$'000 US\$'000 US\$'000 Profit/(loss) for the period 9,883 (3,694) 6,189

Other comprehensive income:

Items not to be reclassified to income statement:

Three months ended 31 January 2023

Separately

Headline

Remeasurement of defined benefit pension schemes - - - Related tax impact - - -
Items that may be reclassified to income statement:
Currency translation differences (48,990) - (48,990)
Cash flow hedge – changes in fair value (3,392) - (3,392)
Cash flow hedge – reclassified to income statement 1,778 - 1,778
Related tax impact 352 - 352
Other comprehensive loss for the period (50,252) - (50,252)
Total comprehensive income/(loss) for the period (40,369) (3,694) (44,063)
Attributable to:
Equity shareholders of the parent (40,369) (3,694) (44,063)
Non-controlling interests - - -
Total comprehensive income/(loss) for the period (40,369) (3,694) (44,063)

Goodwill 2,686,320 2,686,320 Intangible assets 361,690 393,427 Property, plant and equipment 16,712 13,914 Right of use assets 17,266 18,089 Investment in associate 11,368 12,276 Derivative asset 2,555 4,051

Long-term pension assets 547 484 Other receivables 9,035 8,697

Current assets
	3,372,876	3,394,121
Trade and other receivables	113,733	158,044
Current tax receivables	3,597	3,597
Cash and cash equivalents	228,842	177,544
Contract related assets	30,460	37,796
	376,632	376,981
Total assets	3,749,508	3,771,102
Current liabilities
Trade and other payables	80,055	110,490
Borrowings	3,600	3,600
Lease liabilities	6,617	6,249
Provisions	1,638	337
Current tax liabilities	16,283	10,113
Deferred income – contract liabilities	371,899	351,197
	480,092	481,986
Non-current liabilities
Borrowings	725,321	695,989
Lease liabilities	13,696	14,431
Provisions	1,099	1,033
Non-current tax liabilities	8,083	8,083
Deferred tax liabilities	99,833	98,831
Retirement benefit obligations	2,210	2,142
Deferred income – contract liabilities	197,492	215,034
Other payables	4,287	3,861
	1,052,021	1,039,404
Total liabilities	1,532,113	1,521,390
Equity
Share capital	16,943	16,936
Share premium	2,522,971	2,522,978
	(393,721)	(400,262)
Retained losses	84,228	72,482
Other reserves
Cash flow hedging reserve	2,437	4,051
Foreign currency translation reserve Total equity	(15,463) 2,217,395	33,527 2,249,712

losses

Other reserve

Share premium Retained US\$'000 US\$'000 US\$'000 US\$'000 As at 1 November 2022 16,936 2,522,978 (400,262) 72,482 Profit for the period - - 6,189 - Other comprehensive income for the period - - 352 -

Share

Issue of share capital 7 (7) - -

Equity settled share-based payments - - - 11,746

Total transactions with owners 7 (7) - 11,746

As at 31 January 2023 16,943 2,522,971 (393,721) 84,228

capital

Total comprehensive income/(expense) for the period - - 6,541 -

Transactions recorded in equity:

Share premium Retained reserve US\$'000 US\$'000 US\$'000 US\$'000 As at 1 November 2021 16,903 2,523,011 (355,870) 21,169 Loss for the period - - (12,827) - Other comprehensive (expense)/income for the period - - (522) -

Share

Equity settled share-based payments - - - 9,879

Total transactions with owners - - - 9,879

capital

Total comprehensive (expense)/income for the period - - (13,349) -

Transactions recorded in equity:

losses

Other

As at 31 January 2022 16,903 2,523,011 (369,219) 31,048
https://www.eqs-news.com/de/
EQS News – Financial News & Events Directly From The Source

US\$'000 US\$'000 Profit/(loss) for the period 6,189 (12,827) Net finance costs 14,767 11,623 Taxation 12,660 (3,055) Share of losses of associate 908 880

Three months ended

31 January 2022

Three months ended

31 January 2023

Operating profit/(loss) for the period	34,524	(3,379)
Addback:
Depreciation – Property, plant and equipment	1,030	912
Depreciation/impairment – Right of use assets	1,353	1,639
Amortization of intangible assets	34,108	36,260
Amortization of contract related assets	4,826	3,038
Share based payments expense	11,931	9,916
Restructuring charges	4,912	-
Foreign exchange movements	(26,904)	3,209
Impairment credit on trade receivables	27	(183)
Movements:
Movements in trade receivables	51,672	(1,716)
Movements in other receivables	(7,725)	(2,471)
Movements in trade payables	(6,634)	(1,499)
Movements in other payables	(23,375)	(39,134)
Movement in other pensions	(201)	(299)
Movements in provisions	(3,545)	(1,157)
Movements in contract related assets	(9,882)	(8,267)
Contract assets - fair value haircut	(49)	(129)
Movements in contract liabilities	2,512	40,832
Contract liabilities - fair value haircut	648	1,626
Cash generated from operations	69,228	39,198
Interest paid	(9,008)	(8,118)
Interest received	614	2
Tax paid	(2,653)	(5,019)
Net cash inflow from operating activities	58,181	26,063
Cash flow used from investing activities
Purchase of property, plant and equipment	(2,407)	(2,046)
Purchase and development of intangible assets	(2,207)	(103)
Acquisition of a business, net of cash	-	(2,545)
Net cash outflow from investing activities	(4,614)	(4,694)
Net cash inflow before financing activities	53,567	21,369

Three months ended

31 January 2022

Three months ended

31 January 2023

US\$'000 US\$'000 Repayment of bank borrowings (900) (900) Payment of interest rate swap premia (1,636) (2,331) Lease payments (1,997) (1,731) Net cash outflow from financing activities (4,533) (4,961)

Net increase in cash and cash equivalents 49,034 16,408 Foreign exchange movements 2,264 (226) Cash and cash equivalents at beginning of period 177,544 61,061

Cash flows used in financing activities

Cash and cash equivalents at end of period 228,842 77,243

All USD \$m unless otherwise stated	FY23	FY22	YoY Actual
	Q1	Q1
Revenue - IFRS	168.4	153.5	10%
Adjustments
Deferred revenue haircut amortized	0.6	1.6	(63)%
Contract asset haircut amortized	0.0	(0.1)	(100)%
Adjusted Revenue	169.0	155.0	9%
All USD \$m unless otherwise stated	FY23	FY22	YoY Actual
			16.03.2023, 07:38

All USD \$m unless otherwise stated	FY23	FY22 YoY Actual

EQS News – Financial News & Events Directly From The Source			https://www.eqs-news.com/de/
	Q1	Q1
Operating profit/(loss) - IFRS	34.5	(3.4)	n.m.
Adjustments
Depreciation and Amortization	36.5	38.8	(6)%
Separately reported items	4.9	0.0	n.m.
Deferred revenue haircut amortized	0.6	1.6	(63)%
Contract asset haircut amortized	0.0	(0.1)	(100)%
Non-recurring items	1.3	2.8	(54)%
Share-based payments - charge	11.9	9.9	20%
Share-based payments - ER taxes	0.6	0.4	50%
Foreign exchange - unrealized	(23.2)	2.3	n.m.
Adjusted EBITDA	67.1	52.3	28%
All USD \$m unless otherwise stated	FY23	FY22	YoY Actual
	Q1	Q1

		FY22	YoY Actual
	Q1	Q1
Change in Deferred Revenue	(2.5)	(40.8)	(94)%
Adjustments
Deferred revenue haircut amortized	(0.6)	(1.6)	(63)%
Contract asset haircut amortized	0.0	0.1	(100)%
Change in deferred revenue - IFRS	(3.1)	(42.3)	(93)%
All USD \$m unless otherwise stated	FY23	FY22	YoY Actual
	Q1	Q1

	FY22	YoY Actual
Q1	Q1

EQS News – Financial News & Events Directly From The Source				https://www.eqs-news.com/de/
Net cash inflow from operating activities	58.2	26.1	123%
Interest paid	8.4	8.1	4%
Tax paid	2.7	5.0	(46)%
Cash generated from operations	69.3	39.2	77%
Addbacks - non cash items	(31.9)	(56.4)	(43)%
Movements - other working capital	(14.0)	44.8	n.m.
Movement in other pensions	0.2	0.3	(33)%
Movements in provisions	3.5	1.2	192%
Movements in contract related assets	9.9	8.3	19%
Movements in deferred revenue	(2.5)	(40.8)	(94)%
Settlement of share-based payments	0.0	0.0	0%
Operating profit/(loss) per IFRS	34.5	(3.4)	n.m.
Depreciation and Amortization	36.5	38.8	(6)%
EBITDA per IFRS Statements	71.0	35.4	101%
Separately reported items	4.9	0.0	n.m.
Non-recurring items	1.3	2.8	(54)%
Share-based payments - charge	11.9	9.9	20%
Share-based payments - ER taxes	0.6	0.4	50%
Contract liability haircut amoritized	0.6	1.6	(63)%
Contract asset haircut amortized	0.0	(0.1)	(100)%
Foreign exchange - Unrealized	(23.2)	2.3	n.m.
Adjusted EBITDA	67.1	52.3	28%
Change in Deferred Revenue	2.5	40.8	(94)%
Adjusted Cash EBITDA	69.6	93.1	(25)%
Gross tangible capital expenditure	(2.4)	(2.0)	20%
				16.03.2023, 07:38

All USD \$m unless otherwise stated FY23 FY22	YoY Actual
Adjusted Unlevered Free Cash Flow 73.5 44.6	65%
Cash taxes (2.7) (5.0)	(46)%
Leases paid (2.0) (1.9)	5%
Commissions paid (net of amortization) (5.1) (5.1)	0%
Change in core working capital 16.1 (34.5)	n.m.
EQS News – Financial News & Events Directly From The Source	https://www.eqs-news.com/de/

FY22 YoY Actual Q1 Q1 Working Capital Movements - IFRS Movements in trade receivables 51.7 (1.7) n.m. Movements in other receivables (7.7) (2.5) 208% Movements in trade payables (6.6) (1.5) 340% Movements in other payables (23.4) (39.1) (40)% Total Working Capital Movements - IFRS 14.0 (44.8) n.m. Remove non-recurring items: Third party consulting fees 0.5 (0.1) n.m. Transaction costs 1.2 10.4 (88)% Integration costs 0.4 0.0 n.m.
Total Working Capital Adjustments 2.1 10.3 (80)%
n.m.
Change in core working capital (within uFCF) 16.1 (34.5)

EQS News – Financial News & Events Directly From The Source					https://www.eqs-news.com/de/
Core	94.6	101.5	98.7	119.9	113.6
Emerging	14.4	17.5	26.3	23.9	25.8
Total ACV	109.0	119.0	125.0	143.8	139.4
Adjusted Revenue by Solution
Core	121.4	133.2	133.4	130.2	133.9
Emerging	15.4	17.8	20.6	24.8	27.4
Total Adjusted Revenue	136.8	151.0	154.0	155.0	161.3
Adjusted Cost of Sales	10.5	11.6	10.8	11.8	13.1
Adjusted Gross Profit	126.3	139.4	143.2	143.2	148.2
Adjusted Gross Profit Margin	92%	92%	93%	92%	92%
Sales, Marketing & Operations	35.9	39.0	45.7	43.0	46.3
Research & Development	22.4	25.4	24.8	27.0	27.1
General & Administrative	19.8	19.8	24.7	20.9	16.2
Total Operating Expenses	78.1	84.2	95.2	90.9	89.6
Adjusted EBITDA	48.2	55.2	48.0	52.3	58.6
Adjusted EBITDA Margin	35%	37%	31%	34%	36%
Change in deferred revenue	6.2	9.8	3.7	40.8	17.3
Adjusted Cash EBITDA	54.4	65.0	51.7	93.1	75.9
Adjusted Cash EBITDA Margin	40%	43%	34%	60%	47%

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 Rate	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 tax.
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).

Language:	English
Company:	SUSE S.A.
	11-13 Boulevard de la Foire
	1528 Luxembourg
	Luxemburg
SIN:	LU2333210958
WKN:	SUSESA
Indices:	SDAX, TecDAX
Listed:	Regulated Market in Frankfurt (Prime Standard); Luxembourg Stock Exchange
EQS News ID:	1583683