SUSE S.A. — Investor Presentation 2021

Jul 15, 2021

JULY 15, 2021

Q2-21 Results Presentation

Important Notice

This presentation as well as any information communicated in connection therewith (the "Presentation") contains information regarding SUSE S.A. (the "Company") and its subsidiaries (the Company, together with its subsidiaries, "SUSE" or "Group"). It is being provided for informational purposes only and should not be relied on for any purpose and may not be redistributed, reproduced, published, or passed on to any other person or used in whole or in part for any other purpose.

All stated figures are unaudited. This document contains alternative performance measures (APMs) which are further specified on page 25.

Certain statements in this presentation may constitute forward looking statements. These statements are based on assumptions that are believed to be reasonable at the time they are made, and are subject to significant risks and uncertainties, including, but not limited to, those risks and uncertainties described in SUSE's disclosures. You should not rely on these forward-looking statements as predictions of future events and we undertake no obligation to update or revise these statements. Our actual results may differ materially and adversely from any forward-looking statements discussed in these statements due to several factors, including without limitation, risks from macroeconomic developments, external fraud, lack of innovation capabilities, inadequate data security and changes in competition levels.

The Company undertakes no obligation, and does not expect to publicly update, or publicly revise, any forward-looking statement, whether as a result of new information, future events or otherwise. All subsequent written and oral forward-looking statements attributable to it or to persons acting on its behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in this Presentation.

Today's Presenters

Copyright © SUSE

2021

3

Business Update

Melissa Di Donato, CEO

Another Strong Quarter for SUSE

FY21 Guidance and Medium-Term Outlook Confirmed

5 Note: Q2 and H1 financial figures are based on pro forma numbers including Rancher on a coterminous basis in the prior year and in 2021 as if acquired on November 1, 2020. For definition of APM metrics please refer to page 25.

(1) Adjusted for a sizeable contract renewal which occurred in Q2-20.

SUSE Is Delivering…

Commercial Excellence	New headcount in our Digital Hub, resulting in a growing pipeline	First pricing initiatives launched on the 1st of July	Extending contract length with existing customers
Underserved Markets	>30% ACV growth in North America	>50% ACV growth in LatAm	>30% ACV growth in Asia Pacific & Japan
Accelerators	>50% ACV growth in Cloud RTM	60 new MSPs(1) recruited and enabled	Investment in and launch of Rancher Government Services (RGS)
SUSE Rancher	Significant cross-selling (73% Emerging ACV growth)	First ISV deal(2) secured (\$2.4m multiyear commitment)	Cost synergies achieved
Edge	Increasing customer traction	Large deals in Automotive, Defence & Space, Manufacturing, Retail and Telecom	SLE Micro Finalised (launched in May 2021)
Copyright © SUSE	Note: Growth figures refer to year-on-year growth rates for Q2-21.		6

(1) Managed service providers.

(2) Independent software vendor.

2021

…And Will Continue to Drive Growth

A Fantastic Quarter for New Customer Contracts

Copyright © SUSE 2021

A Successful IPO Bringing Stakeholder Engagement…

Our Colleagues Are Engaged…

…And Increasingly Invested in SUSE

86% response rate to latest employee satisfaction survey

5,500 comments, equivalent to nearly 3 contributions per colleague

Our Community Has Never Been so Active

64%

y-o-y increase in SUSECON event attendance

721%

y-o-y increase in social media engagement on SUSECON event days

92%

y-o-y increase in SUSECON audience engagement(1)

1.6m

Total views making Choose Open SUSE's most watched video!

63%

of our staff are invested in SUSE through LTIP (vs. 25% pre-IPO)

Employee Stock Purchase Plan being established

…A New Supervisory Board…

Jonas Persson

N&R

Nora Denzel Chair of Nomination & Remuneration Committee

Adrian Dillon

Chair of Audit Committee (Independent)

New Supervisory Board in Place, Bringing Together 8 Highly Experienced Professionals Including 4 Independent Board Members

Ariane Reinhart

Board Member (Independent)

…And Further Progress on ESG

ESG Goals	Targeted Initiatives	Transverse Initiatives
Climate Action Commitment Towards Becoming Net Zero	Climate Action — GHG emissions measured in 2019 and 2020 — Developing a roadmap towards net-zero	Philanthropy — Launched flagship employee program SUSEcares, with over 300 employees already engaged
Diversity & Inclusion At least 30% Female Directors by 2026	Diversity & Inclusion — Developing cross-functional work plan and program with HR to nurture and grow internal talent as well as hire externally — To be launched with first non-financial disclosure report
Open Source 4 Good Promote access and equality in the open source community through professional development courses and structured internships / apprenticeships	Open Source 4 Good — Launched Udacity-SUSE cloud native nanodegree course in May as well as free foundational course — Scholarship program, with 100 to be granted specifically to women of colour	Employee Engagement — Well-resourced and functioning employee networks (e.g. Women in Tech, Pride) — Paid volunteering days
ESG Governance Establish a governance framework to ensure ESG is fully embedded across the business	ESG Governance — Developed framework for policy life cycle management at SUSE and rewriting of key policies — Rolling out of cross-functional governance structure and terms of reference
Copyright © SUSE 2021		11

Financial Update

Andy Myers, CFO

Financial Results Summary

ACV by Solutions

ACV growth of 11% in Q2-21 despite a demanding prior year's base

− 22% ACV growth on an underlying basis, adjusted for the impact of a major contract renewal in Q2-20

Continued momentum in Emerging with 73% growth in Q2-21, reflecting growing enterprise uptake of Containers:

• − First ISV deal secured for SUSE Rancher (\$2.4m multi-year commitment)
• − Positive momentum in selling SUSE Rancher solutions into SUSE's installed base

Very high growth across underserved markets, with North America, LatAm and APJ all above 30%

Route to Market Dynamics

• − Particularly dynamic in the Cloud Route-to-Market, which saw over 50% growth in ACV
• − IHV slightly weaker, due to hardware supply issues increasing customer lead times
• − End User continues to show strong underlying growth across the board

Note: All figures are expressed in \$m unless otherwise specified. Q2 and H1 financial figures are based on pro forma numbers including Rancher on a coterminous basis in the prior year and in 2021 as if acquired on November 1, 2020. For definition of APM metrics please refer to page 25.

Adjusted Revenue by Solutions

60% 9% 47% 6% Adjusted Revenue by Solutions (\$m) YoY Growth YoY Growth Q2-20 – Q2-21 H1-20 – H1-21 115 121 ^{221 11 240 15} 19 31 ^{126 137} 240 271 Q2-20 Q2-21 H1-20 H1-21

Core Emerging

ARR y-o-y growth of 16%, resulting in a combined ARR of \$519m as of Q2-21

− NRR of 109% and 125% for SUSE and SUSE Rancher respectively

Robust revenue growth of 9% in Q2-21:

− 13% revenue growth on an underlying basis, once adjusted for the royalty true up of \$4.5m in Q2-20

Growth in Core of 6% in Q2-21 impacted by a royalty true up in the IHV route-to-market

Emerging growing at 47% in Q2-21

Copyright © SUSE 2021

Note: All figures are expressed in \$m unless otherwise specified. Q2 and H1 financial figures are based on pro forma numbers including Rancher on a coterminous basis in the prior year and in 2021 as if acquired on November 1, 2020. For definition of APM metrics please refer to page 25.

Operating Costs Evolution

	(\$m)	Q2-20	Q2-21	H1-20	H1-21
	Adjusted Revenue	125.5	136.8	240.4	270.9
1	Cost of Sales	(7.5)	(10.5)	(14.6)	(18.6)
	As % of Revenue	6.0%	7.7%	6.1%	6.9%
	Gross Profit	118.0	126.3	225.8	252.3
	% Margin	94.0%	92.3%	93.9%	93.1%
2	Sales, Marketing & Operations	(34.1)	(35.9)	(69.5)	(67.4)
3	Research & Development	(20.1)	(22.4)	(40.4)	(44.4)
4	General & Administrative	(14.0)	(19.8)	(28.5)	(31.6)
	Total Operating Costs	(68.2)	(78.1)	(138.4)	(143.4)
5	Adjusted EBITDA	49.8	48.2	87.4	108.9
	% Margin	39.7%	35.2%	36.4%	40.2%

— Cost of Sales:

1

2

4

• − Slight increase resulting from growth in Rancher Government Services business, which involved incremental third-party consulting costs
• Sales, Marketing & Operations:
• − Slight increase due to 61 additional FTEs, as well higher marketing spend to drive demand generation
• Research & Development: 3
• − Broadly flat as % of revenue with the impact of increased headcount largely offset by elimination of overlapping functions at SUSE Rancher
• General & Administrative:
• − Increase due to the end of favourable TSA with Micro Focus and 40 additional FTEs to support growth
• − Adjusted EBITDA margin reflecting investment for growth 5

Profitability Update

SUSE continues to show high levels of profitability thanks to its mission-critical open source solutions and highly efficient go to market

Adjusted EBITDA margins in Q2-21 and H1-21 reached 35% and 40% respectively

Adjusted Cash EBITDA margins in Q2-21 and H1-21 reached 40% and 60% respectively

• − Modest deferred revenue inflow in Q2-21, with a challenging comparison basis given particularly large multi-year deal signed in Q2- 20
• − Typical H1-21 change in deferred revenue pattern reflecting a combination of business seasonality and large renewals in Q1-21

Note: All figures are expressed in \$m unless otherwise specified. Q2 and H1 financial figures are based on pro forma numbers including Rancher on a coterminous basis in the prior year and in 2021 as if acquired on November 1, 2020. For definition of APM metrics please refer to page 25.

Bridge from Adjusted EBITDA to Adjusted uFCF (H1-21)

Balance Sheet / Leverage

Net proceeds from the IPO (post VSOP payment and other IPO costs) of \$502m utilised to pay down debt, resulting in pro forma leverage of 3.1x

− IPO proceeds used to fully repay the Second Lien Term Loan Facility (\$270m) and partial repayment of the Term Loan B (\$232m), as well as payment of liabilities relating to the virtual stock option program

S&P and Moody's have upgraded their ratings for SUSE post IPO, to BB- (Stable) and B1 (Stable) respectively

SUSE is committed to keeping leverage below 3.5x LTM Adj. Cash EBITDA over the medium term, whilst retaining flexibility for any potential M&A

Note: All figures are expressed in \$m unless otherwise specified. H1 financial figures are based on pro forma numbers including Rancher on a coterminous basis in the prior year and in 2021 as if acquired on November 1, 2020.

(1) Defined as Net Debt divided by LTM Adjusted Cash EBITDA.

(2) Net proceeds after the cash payment related to the VSOP program as well as other IPO costs and debt pre-payment fees.

IPO Update

— Successful listing in May 2021 on the Frankfurt Stock Exchange

• 168.3m total shares outstanding post offering (170.2m on a fully diluted basis)
• Marcel Lux III retains an ownership of 76.8%, with an implied free float of 23.2%

Guidance and Medium-Term Outlook Confirmed

		FY2021(1)	Medium Term Outlook
e u al al V ct u n	Core	Mid-to-high teens growth (weighted towards H2-21)	Mid-to-high teens growth(2)
a n ntr A o C	Emerging	>\$75m	In excess of 50% growth
	Total Revenue(3)	\$550 – 570m	—
	Adjusted EBITDA	Mid thirties margin	Stable margin from FY21, before gradual increase towards 40%
	Change in Deferred Revenue	Low teens % of revenue (net inflow)	Stable vs. FY21 as % of revenue (net inflow)(4)
	Adjusted Cash EBITDA	\$245 – 265m (~46% margin)(5)	—
	Adjusted uFCF Conversion	Mid nineties % of Adj. EBITDA	Stable-to-slight increase from FY21 levels as % of Adj. EBITDA

Copyright © SUSE 2021

• Note: All figures are expressed in \$m unless otherwise specified. For definition of APM metrics please refer to page 25.
• (1) Including 11 months of Rancher from 1 December 2020.
• (2) Growth from one year to the other can be impacted by large enterprise deals or returning multi-year enterprise deals.
• (3) Shown before the impact of the deferred revenue haircut.
• (4) Timing of new contracts as well as renewal patterns can cause volatility in the change in deferred revenue in any given quarter or year.
• (5) Based on midpoint of the revenue and Adj. Cash EBITDA guidance range.

Taking Share in Expanding TAM

Powering Mission Critical Workloads

Global Leader in Open Source Software

Multi-Channel Go-To-Market Platform for Blue-Chip Customer Base

Growth and Profitability at Scale, Combined with Strong Cash Generation

Proven Platform for Growth Investments

Highly Engaged and Incentivised Workforce

Appendix

Alternative Performance Measures (APMs)

This document contains certain alternative performance measures (collectively, "APMs") including ACV, ARR, NRR, Adjusted Revenue, Adjusted EBITDA, Adjusted Cash EBITDA, Adjusted Cash EBITDA margin, Adjusted uFCF, Cash Conversion and Net Debt that are not required by, or presented in accordance with, IFRS, Luxembourg GAAP or any other generally accepted accounting principles. Certain of these measures are derived from the IFRS accounts of the Company and others are derived from management reporting or the accounting or controlling systems of the Group.

SUSE presents APMs because they are used by management in monitoring, evaluating and managing its business and management believes these measures provide an enhanced understanding of SUSE's underlying results and related trends. The definitions of the APMs may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should, therefore, not be considered in isolation or as a substitute for analysis of SUSE's operating results as reported under IFRS or Luxembourg GAAP. APMs such as ACV, ARR, NRR, ACV to Revenue Conversion, Adjusted Revenue, Adjusted EBITDA, Adjusted Cash EBITDA, Adjusted Cash EBITDA Margin, Adjusted uFCF, Cash Conversion and Net Debt are not measurements of SUSE's or the Company's performance or liquidity under IFRS, Luxembourg GAAP or German GAAP and should not be considered as alternatives to results for the period or any other performance measures derived in accordance with IFRS, Luxembourg GAAP, German GAAP or any other generally accepted accounting principles or as alternatives to cash flow from operating, investing or financing activities.

SUSE has defined each of the following APMs as follows:

"Annual Contract Value" or "ACV": ACV represents the first 12 months monetary 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": ARR represents the sum of the monthly contractual value for subscriptions and recurring elements of contracts in a given period, multiplied by 12. ARR for SUSE (excluding Rancher) is calculated three months in arrears, given backdated royalties relating to IHV and Cloud, and hence reflects the customer base as of three months prior. ARR for SUSE as of April 30, 2021 is calculated as the sum of SUSE (excluding Rancher)'s ARR as of April 30, 2021 and SUSE Rancher's ARR as of April 30, 2021;

"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;

"Adjusted Revenue": Revenue as reported in the statutory accounts of the Company, adjusted for fair value adjustments;

"Adjusted EBITDA": this APM represents earnings before net finance costs, share of loss of associate and tax, adjusted for depreciation and amortization, share based payments, fair value adjustment to deferred revenue, statutory separately reported items, specific non-recurring items and net unrealized foreign exchange (gains)/losses;

"Adjusted Cash EBITDA": this APM represents Adjusted EBITDA plus changes in contract liabilities in the related period and is shown in the Prospectus and excludes the impact of contract liabilities – deferred revenue haircut;

"Adjusted Cash EBITDA Margin": expressed as a percentage, this APM represents Adjusted Cash EBITDA divided by Adjusted Revenue;

"Adjusted Unlevered Free Cash Flow" or "Adjusted uFCF": this APM represents Adjusted Cash EBITDA less capital expenditure related cash outflow, working capital movements (excluding deferred revenue, which is factored into Adjusted Cash EBITDA, and non-recurring items), cash taxes and the reversal of non-cash accounting adjustments relating to IFRS 15 and IFRS 16;

"Cash Conversion": expressed as a percentage, this APM represents Adjusted uFCF divided by Adjusted EBITDA; and

"Net Debt": this APM represents the sum of non-current financial liabilities, non-current lease liabilities, current financial liabilities and current lease liabilities less cash and cash equivalents as of the respective balance sheet date (excluding capitalized debt arrangement fees (net of amortization) and gains on loan modifications).

(Re)Introducing SUSE

Our Customers Trust Us to Run and Deploy their Most Mission-Critical Workloads

(1) Shown before the impact of the deferred revenue haircut.

2021

(2) Based on midpoint of the Revenue and Adj. Cash EBITDA guidance range.

(3) Growth from one year to the other can be impacted by large enterprise deals or returning multi-year enterprise deals.

Bridge from Adjusted EBITDA to Adjusted uFCF (Q2-21)

Adjusted Revenue Reconciliation

(\$m)	Q2-20	Q2-21	H1-20	H1-21
Statutory Revenue	113.4	133.2	215.7	259.7
Plus: Contract Liability Haircut Amortised	4.6	3.6	11.1	7.5
Plus: Pro Forma Rancher Contribution(1 )	7.5	-	13.6	3.7
Adjusted Revenue	125.5	136.8	240.4	270.9

Adjusted EBITDA Reconciliation

(\$m)	Q2-20	Q2-21	H1-20	H1-21
Operating Loss per Statutory Account	8.0	(130.0)	(2.3)	(150.8)
Minus: Amortisation and Depreciation	32.8	40.5	67.8	78.8
Minus: Separately Reported Items	-	4.6	-	9.2
Minus: Contract Liability Haircut Amortised	4.6	3.6	11.1	7.5
Minus: Non-recurring Items	6.6	6.3	14.0	13.3
Minus: Share Based Payments(1 )	2.2	127.6	4.3	153.6
Plus: Foreign Exchange (unrealised)	(0.4)	(4.4)	0.9	(0.9)
Adjusted EBITDA (Statutory Basis, Excluding Rancher Pro Forma Contribution)	53.8	48.2	95.8	110.7
Minus: Adjustment for Actual Rancher Contribution(2 )	(4.0)	-	(8.4)	(1.8)
Adjusted EBITDA	49.8	48.2	87.4	108.9

(1) Q2-21 and H1-21 increase in share based compensation driven by pre-IPO option program.

(2) Adding 3 months, 6 months and 1 month of Rancher for Q2-20, H1-20 and H1-21 respectively.

Adjusted PBT Bridge

(\$m)	Q2-20	Q2-21	H1-20	H1-21
Adjusted Revenue	125.5	136.8	240.4	270.9
Adjusted EBITDA	49.8	48.2	87.4	108.9
Minus: Depreciation - PPE	(1.0)	(1.1)	(1.8)	(2.3)
Minus: Depreciation - Right of use assets	(2.7)	(1.4)	(5.9)	(3.1)
Minus: Net Finance Costs	(23.3)	(23.4)	(40.3)	(30.0)
Adjusted PBT	22.8	22.3	39.4	73.5
% Margin	18.2%	16.3%	16.4%	27.1%

Adjusted Unlevered FCF Bridge

(\$m)	Q2-20	Q2-21	H1-20	H1-21
Adjusted Cash EBITDA	59.2	54.4	115.1	161.5
Minus: Capex	(0.3)	(0.4)	(1.0)	(0.8)
Plus: Other Working Capital (excl. Def Revenue)	19.3	24.1	4.7	(27.6)
Minus: IFRS 15	(4.3)	(7.3)	(9.3)	(17.3)
Minus: IFRS 16	(3.0)	(1.6)	(6.3)	(3.6)
Minus: Cash Tax	(1.9)	(1.6)	(3.4)	(4.0)
Plus: Rancher Impact(1 )	(2.3)	-	(4.2)	(1.8)
Adjusted uFCF	66.7	67.6	95.6	106.4

Note: For definition of APM metrics please refer to page 25. 31

(1) Cash flow items below Adjusted Cash EBITDA are presented on a statutory basis, and hence H1-21 figures include only 5 months of Rancher, and H1-20 and Q2-21 include no impact from Rancher. Adjustment reflects the combined impact of the missing Rancher contribution relating to capex, other working capital items, reversal of IFRS 15 and 16, cash taxes and other.

Thank you