SUSE

JANUARY 20, 2022

Q4-21 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.

This document contains alternative performance measures (APMs) which are further specified on page 27.

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

Melissa Di Donato
CEO

Andy Myers
CFO

Jonathan Atack
Investor Relations Director

AGENDA

Business Update
Financial Update

Business Update

Melissa Di Donato, CEO

FY-21 – A Great Year for SUSE

| Rancher Acquisition
Closed on 1 Dec 2020 | IPO on the Frankfurt Stock Exchange
Completed on 19 May 2021 | New Product Launches | Open Source Innovation | NeuVector Acquisition
Closed on 28 Oct 2021 | Building the SUSE Brand |
| --- | --- | --- | --- | --- | --- |
| • Market leader in Kubernetes management
• Platform combining best-in-class Linux OS, market-leading Kubernetes CMP and pioneering edge capabilities | Largest Enterprise Software IPO ever in EMEA^{(1)} | SUSE Linux Enterprise Server 15 SP3
SUSE Rancher 2.6
SUSE Linux Enterprise Micro 5.1 | Epinio
Harvester
Opni
Rancher Desktop | • Provides full lifecycle container security in any mission-critical environment
• Accretive to the group medium-term growth profile | • First place in German Brand Awards for "Excellence in Brand Strategy & Creation – Brand Design"
• Two platinum awards at Hermes Creative Awards for Company Branding and Branding Refresh
• Decision Maker Award, Digitization Category – Presented by WirtschaftsWoche and KPMG |

Note: (1) Excluding SME Software, at announcement date.

FY-21 – Strong Performance

| 26%
Reported ACV Growth | $576m
Adjusted Revenue | $560m
Total ARR
17%
Total ARR Growth | 108%
SUSE NRR
145%
Rancher NRR |
| --- | --- | --- | --- |
| 48%
Adjusted Cash EBITDA Margin | $278m
Adjusted Cash EBITDA | 94%
Cash Conversion | $200m
Unlevered
Free Cash Flow |
| 37%
Adjusted EBITDA Margin | $212m
Adjusted EBITDA | | |

SUSE has exceeded its guidance on revenue and profitability

Note: FY21 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 27.

SUSE Delivered on Organic Plan in Q4-21...

| Commercial Excellence | Important certification obtained for highest security requirements:
Common Criteria Level 4
Stable contract length (19 months) | | |
| --- | --- | --- | --- |
| Underserved Markets | 23% ACV growth in North America | 95% ACV growth in LatAm | 87% ACV growth in Asia Pacific & Japan |
| Accelerators | Strong growth with Hyperscalers | 34 new MSP^{(1)} contracts | Pricing discipline providing early benefits |
| SUSE Rancher | Significant cross-selling (102% Emerging ACV growth) | Signed first Harvester deal with global automotive company | SUSE Rancher 2.6 now available |
| Edge | Significant Edge deal signed with EMEA telco giant that utilises both SUSE Rancher and SUSE Linux Enterprise | | Launch of SLE Micro 5.1 |

Note: Growth figures refer to year-on-year growth rates for Q4-21. (1) Managed service providers.

...and on M&A – NeuVector Acquisition

NeuVector at a Glance

Leader in Full Lifecycle Container Security

Security Automation

Continuous Compliance

DevOps Transformation

Premium User & Partner Portfolio

figo

reputation.com

Strategic Rationale

Extend reach into high-growth container market

Financial Impact

$130m
Total consideration
($29m shares & $101m cash)

Accelerated Revenue Growth

Investment
in NeuVector in FY22

A Strong Quarter for New Contracts

	Leading Publicly Listed Global Financial Services Firm	Forbes 2000 EMEA Telco	Leading Manufacturer of Tech Hardware and Semiconductors
Overview	Growth and expansion of initial SUSE Rancher footprint in one of the most prominent participants in the payments space	Increased penetration of SUSE Linux Enterprise and SUSE Rancher into top tier EMEA telco	Net new win for SUSE Linux Enterprise Real Time at Chinese publicly listed conglomerate
Products	SUSE Rancher (scaling in customer environment due to organic growth and widespread adoption)	SUSE Rancher and SUSE Linux including:
• SUSE Linux Enterprise Micro
• SUSE Manager
• K3s
• SUSE Rancher Management
• Longhorn
• SUSE Platinum Support, Consulting, Training	SUSE Linux Enterprise Real Time
Why SUSE	✓ Interoperability with open source tooling and no vendor lock-in
✓ Competitor acceptance and onboarding too slow with previous providers
✓ Kubernetes architecture expertise pivotal in customer's deployment of new platform	✓ True open source solution: interoperable and transparent
✓ Strong track record with European companies
✓ Single provider for operating system and Kubernetes solution: ease of deployment	✓ Superior real-time capabilities
✓ Solution running on x86-64 servers
✓ SUSE support ensures high performance levels are maintained

Our People

Growing our Team to Drive Growth and Innovation

(Split of new headcount additions by function)

2,045 total colleagues at end of FY-21

Highly Engaged and Satisfied Workforce

Successfully Hiring Top Talent

New executives joining from premium industry players (Chief Customer Officer, Chief Revenue Officer, Chief Information Officer)

RSU grants aligning employees with investors while aiding in hiring and retention

SUSE employee NPS(1) are consistently above average for:

Honest and open line management communication
Employee autonomy
Line management support
Employee satisfaction with flexibility in work schedule
Freedom of opinions

Note:
(1) Above the mid-range benchmark percentile for Workday Peakon Employee Voice Tech Sector clients.

ESG – Q4-21 Progress

ESG Goals

Climate Action

Science-Based Target (being set in FY22)

Diversity & Inclusion

At least 30% women in leadership by 2026

Open Source For Good

Promote and support the open source community through professional development programs

Business Integrity, Compliance & Governance

Ensure sustainability values are integrated in our daily business

Targeted Initiatives

Launched a new Environmental Policy demonstrating our accountability and commitment to energy efficiency and reduction of GHG emissions
Delivered women-in-tech skill development and coaching sessions to over 500 female leaders in partnership with external organizations
Launched the WIT Early Career Mentorship program pairing SUSE staff with young women pursuing technology careers
Partnered with leading universities to deliver SUSE Linux Enterprise course introducing students to open source
Launched "El Rancho SUSE," a community center in the USA promoting technology education on openSUSE Linux
Published core policies including Anti-Bribery & Anti-Corruption, Whistle Blowing, Health & Safety, and Information Security Management policies
Extended materiality assessments to customers, partners, investors and suppliers

Transverse Initiatives

Philanthropy

SUSEcares supported 16 charities across the globe
60% of employees used their volunteering days

Employee Engagement

4 well-resourced and active employee networks
SUSE celebrated company and industry milestones to drive employee engagement

Disclosure

Release of our first Non-financial Disclosure Report, aligned with Global Reporting Initiative standards and influenced by the UN Sustainable Development Goals

Strongly Differentiated Product Portfolio in High Growth Markets...

Open & Interoperable

True open source solutions to overcome competitor's lock-in strategy and benefit from the global developer community

Cloud Native

Optimised for modern cloud-native use cases, supporting management and optimisation of multi & hybrid cloud

Mission-critical Workloads

Best-of-breed environment for mission-critical IT infrastructure with the highest levels of security standard

Best-in-Class Support

Best support for large-scale enterprises all the way from on-prem to cloud and edge

...Delivering the Most Comprehensive Open Source IT Infrastructure Stack

Future Investment	Developer Services	EPINIO	RANCHER DESKTOP
	Monitoring, Logging, AIOps	OPNI
Rising Stars Available in FY-22	Hyperconverged Infrastructure	HARVESTER
	Cloud Native Security	NeuVector
Industry -Leading Solutions Today	Enterprise Container Management	SUSE RANCHER
	Kubernetes Distributions	RKE	K3S
	Cloud Native Storage	LONGHORN
	Business-Critical OS & OS Management	SUSE Linux Enterprise	SLE Micro SUSE Manager

Financial Update

Andy Myers, CFO

Strong Financial Results

Q4-21

Revenue up 15%
Adjusted EBITDA margin of 31%
Adjusted Cash EBITDA margin of 34%
Leverage at 2.6x LTM Adjusted Cash EBITDA, stable vs Q3-21

FY-21

Revenue up 15%
Adjusted EBITDA margin of 37%
Adjusted Cash EBITDA margin of 48%
FY-21 Guidance outperformed across all metrics

FY-22 Guidance consistent with medium-term outlook as provided at IPO

Results prepared on an adjusted, pro-forma basis at actual currency rates
- Pro forma figures prepared for Q4-21 and FY-21, as well as for the prior year periods, as if Rancher had been fully consolidated (Rancher only consolidated since December 2020 in the Statutory Accounts)
- Acquisition of NeuVector completed prior to year-end, impacting net debt and leverage; APM not shown on a pro forma basis
- Revenue shown excluding the impact of the deferred revenue haircut
- Other P&L and cash flow items excluding the impact of share based compensation, as well as non-recurring items

Note: All figures are expressed in $m unless otherwise specified. Q4 and FY 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 27.

Delivered on our Guidance

	FY2021 Pro Forma Guidance	FY2021 Pro Forma Actual
Annual Contract Value	Core	Mid-to-high teens growth
(weighted towards H2-21)
17.7% ☑
	Emerging	>$81m
$85m ☑
Total Revenue(1)		Top half of the $554m – 574m range
$576m ☑
Adjusted EBITDA		Mid-thirties
36.8% ☑
Change in Deferred Revenue		Low teens % of revenue
(net inflow)
11.5% ☑
Adjusted Cash EBITDA		Above the top of the $246 – 266m range
(~45% margin)
$278m
(48.3% margin) ☑
Adjusted uFCF Conversion		Mid nineties % of Adj. EBITDA
94.4% ☑

Source: Company information.

Note: All figures are expressed in $m unless otherwise specified. FY 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 27.

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

ACV – Strong Contribution From Emerging

ACV by Solutions (\$m)

Group ACV growth of 28% in Q4-21 (+26% over FY-21)
- Core ACV up 17% driven by renewals and upselling
- Emerging ACV up 102%, driven by cross-selling of Rancher solutions into the broader SUSE Rancher customer base
- No impact from FX in Q4-21
- FY-21 ACV growth was +23% on a constant currency basis

Highlights by geography

EMEA saw particular strong growth in Emerging, with largest net new deal to date and first deal for Harvester
North America up against a challenging comparison basis, thanks to progress made in Rancher Government Services

Highlights by RTM

Continued momentum in End User and Cloud, with particular contribution from Hyperscalers
IHV has delivered positive growth despite being impacted by the shift to Cloud and delayed hardware shipments, reducing rate of delivery to our partners

Adjusted Revenue – Exceeds Guidance

Adjusted Revenue by Solutions ($m)

Q4-20 – Q4-21

YoY Growth

15%

Core Emerging

Q4-21 revenue of $154m, up 15% yoy

Core up 9% against a challenging comparison basis driven by the Cloud RTM with good balance of new business and renewals
Emerging up 84% as SUSE Rancher wins new business and extends demand from existing customers
No impact from FX in Q4-21
FY-21 revenue growth was +14% on a constant currency basis

Q4-21 ARR of $560m, up 17% yoy

NRR of 108% and 145% for SUSE ex. Rancher and Rancher respectively
Combined NRR of 110%

Note 1: All figures are expressed in $m unless otherwise specified. Q4 and FY 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 AFM metrics please refer to page 27.

Note 2: Q3 ARR and NRR figures for Rancher have been recalculated to adjust for incomplete datasets; please refer to page 35 for more details.

Operating Costs – Continued Investment in Growth

($m)	Q4-21	Q4-20	FY-21	FY-20
Adjusted Revenue	154.0	133.4	575.9	499.1
Cost of Sales	(10.8)	(8.4)	(41.0)	(30.6)
As % of Revenue	7.0%	6.3%	7.1%	6.1%
Gross Profit	143.2	125.0	534.9	468.5
% Margin	93.0%	93.7%	92.9%	93.9%
Sales, Marketing & Operations	(45.7)	(42.5)	(152.1)	(144.9)
Research & Development	(24.8)	(22.2)	(94.6)	(82.9)
General & Administrative	(24.7)	(24.5)	(76.1)	(67.1)
Total Operating Costs	(95.2)	(89.2)	(322.8)	(294.9)
Adjusted EBITDA	48.0	35.8	212.1	173.6
% Margin	31.2%	26.8%	36.8%	34.8%

Q4-21 Gross Profit:
Slightly up relative to prior quarter (93.0% vs 92.3% in Q3-21), reflecting the impact from shift towards Emerging
Q4-21 Sales, Marketing & Operations:
Slight decline as a % of revenue, although an absolute increase y-o-y driven by headcount additions as well as higher marketing costs and partial return of travel expenses
Q4-21 Research & Development:
Increase in R&D as a result of headcount up ~20% YoY and sponsorship expenses in open source marketing initiatives
Q4-21 General & Administrative:
Largely stable over the quarter, due to a realized FX gain, which mitigates the additions in IT and Finance to support the transition to a publicly listed company
Q4-21 Adjusted EBITDA margin
Significantly up despite large investments, driven by operating leverage in SUSE's business model

High Levels of Profitability

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

Adjusted EBITDA margins in Q4-21 and FY-21 reached 31% and 37% respectively, reflecting seasonally lower margins in the fourth quarter

Adjusted Cash EBITDA margins in Q4-21 and FY-21 reached 34% and 48% respectively

Modest deferred revenue inflow in Q4-21, reflecting the renewal of a number of large multi-year contracts with annual payment

Note: New definition of adjusted PBT now inclusive of amortisation of purchased software and development costs

Continued High Level of Cash Conversions

Note: All figures are expressed in $m unless otherwise specified. Financial figures are based on pro forma numbers including Rancher on a coterminous basis as if acquired on November 1, 2020. For definition of APM metrics please refer to page 27.

Continuous De-Leveraging

Net Debt ($m)

Net debt at $721m in FY-21. Most relevant moving parts this year were
- Rancher acquisition
- IPO on the Frankfurt Stock Exchange
- NeuVector acquisition
- Continuously strong cash generation

Leverage ratio of 2.6x in line with Q3-21 levels, reflecting the payment of the cash component of the NeuVector acquisition for $101m

Excluding Neuvector, leverage ratio would have been 2.2x

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. 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.

Consistent ACV Growth Beyond Inherent Quarterly Variability

LTM ACV (\$m)

Quarterly ACV show some inherent variability

Renewal contracts pool size can substantially vary on a quarterly basis
Exact timing of new large contracts or RCCs(1) is complex to predict accurately
Quarterly variability does not reflect underlying business developments

LTM ACV shows underlying growth consistently above 20%

This is demonstrated by the quarterly evolution of LTM ACV
Implementation of our growth strategy will help gradually reduce quarterly variability as the relative weight of individual contracts is reduced

Note: All figures are expressed in $m unless otherwise specified. FY19 financial figures do not include Rancher contribution, FY20 financial figures only include Rancher actual contribution on a coterminous basis starting from November 2019. For definition of APM metrics please refer to page 27.

(1) Retrospective consumption contracts.

Guidance Reflects Strong Growth Trajectory

		FY2021 Actual	FY2022 Guidance	Medium Term Outlook
Annual Contract Value	Core	17.7%	Mid-to-high teens growth
(Limited growth in Q1)	Mid-to-high teens growth
	Emerging	$85m	In excess of 60% growth
(Q1 below full-year growth)	In excess of 50% growth
Total Revenue(1)		$576m	Mid-to-high teens growth
(Q1 around mid-teens)	Growth around 20%
Adjusted EBITDA margin		36.8%	Around mid-thirties	Gradual increase towards 40%
Adjusted uFCF Conversion		94.4%	Stable-to-slight increase from FY21 levels as % of Adj. EBITDA	Stable-to-slight increase from FY22 levels as % of Adj. EBITDA

Source: Company information, Broker consensus.

Note: All figures are expressed in $m unless otherwise specified. FY-21 financial figures are based on pro forma numbers including Rancher on a coterminous basis as if acquired on November 1, 2020. For definition of APM metrics please refer to page 27.

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

Global Leader in Open Source Software

Taking Share in Expanding TAM

Powering Mission Critical Workloads

Multi-Channel Go-To-Market Platform for Customers and Industries of all Sizes

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 EBITDA Margin Adjusted Cash EBITDA, Adjusted Cash EBITDA margin, Adjusted uFCF, Cash Conversion, and Net Debt and Leverage 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, Adjusted Revenue, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Cash EBITDA, Adjusted Cash EBITDA Margin, Adjusted uFCF, Cash Conversion, RPO and Net Debt and Leverage are not measurements of SUSE'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 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;

"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 Group, adjusted for fair value adjustments;

"Adjusted Gross Profit": this APM represents Adjusted Revenue less operating costs adjusted for non-recurring items;

"Adjusted Gross Profit Margin": expressed as a percentage, this APM represents Adjusted Gross Profit divided by Adjusted Revenue

"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 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 Profit before Tax" is Adjusted EBITDA (post IFRS 15 and 16), less D&A (excluding intangible amortisation for Customer relationships, intellectual property and non-complete agreements) less net financial expense

"Adjusted Profit after Tax" is Adjusted Profit before Tax less notional tax

"Adjusted Earnings per share" represents Adjusted Profit after Tax less notional tax divided by the weighted average number of shares during the period

"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;

"Contractual Liabilities and Remaining Performance Obligations" or "RPO": RPO represents the unrecognized proportion of remaining performance obligations towards subscribers (e.g., the amount of revenue that has been invoiced, but not yet recognized as revenue) plus amounts for which binding irrevocable commitments have been received but have yet to be invoiced; and

"Net Debt": This APM represents the sum of current and non-current interest bearing borrowings (net of un-amortized capitalized arrangement fees, gains or losses on loan modifications), current and non-current lease liabilities, less cash and cash equivalents

"Leverage" - Expressed as a multiple, Leverage is Net Debt divided by Adjusted Cash EBITDA

Q4-21 – Strong Quarter

| 28%
Reported ACV Growth | $154m
Adjusted Revenue | $560m | 108% |
| --- | --- | --- | --- |
| | | Total ARR | SUSE NRR |
| | | 17% | 145% |
| | | Total ARR Growth | Rancher NRR |
| 34%
Adjusted Cash EBITDA Margin
31% | $52m
Adjusted Cash EBITDA
$48m | 114% | $55m |
| | | Cash Conversion | Unlevered
Free Cash Flow |
| | | | |

Note: Q4 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 27.

Key Financial Metrics By Quarter

($m, PF for Rancher)	Q1-20	Q2-20	Q3-20	Q4-20	FY-20	Q1-21	Q2-21	Q3-21	Q4-21	FY-21
Total ACV	108.5	98.6	85.9	97.7	390.7	137.6	109.0	119.0	125.0	490.6
o/w Core	95.1	90.3	74.9	84.7	345.0	111.3	94.6	101.5	98.7	406.1
o/w Emerging	13.4	8.3	11.0	13.0	45.7	26.3	14.4	17.5	26.3	84.5
Adjusted Revenue	114.9	125.5	125.3	133.4	499.1	134.1	136.8	151.0	154.0	575.9
o/w Core	106.1	115.0	114.5	122.2	457.8	118.6	121.4	133.2	133.4	506.6
o/w Emerging	8.8	10.5	10.8	11.2	41.3	15.5	15.4	17.8	20.6	69.3
Adjusted EBITDA	37.6	49.8	50.4	35.8	173.6	60.7	48.2	55.2	48.0	212.1
% Margin	32.7%	39.7%	40.2%	26.8%	34.8%	45.3%	35.2%	36.6%	31.2%	36.8%
Change in Deferred Revenue	18.3	9.4	(15.0)	(7.0)	5.7	46.4	6.2	9.8	3.7	66.1
Adjusted Cash EBITDA	55.9	59.2	35.4	28.8	179.3	107.1	54.4	65.0	51.7	278.2
% Margin	48.7%	47.2%	28.3%	21.6%	35.9%	79.9%	39.8%	43.0%	33.6%	48.3%

Note: For definition of APM metrics please refer to page 27. Q1-20, Q2-20, Q3-20, Q4-20, FY20, Q1-21 and FY-21 figures have been made pro forma for the acquisition of Rancher, as if consolidated from 1-Nov-19.

Note: The Q3-20 and Q4-20 Adjusted EBITDA has been revised since the publication of the pro-forma history on the Company website. This represents a phasing adjustment, reducing Cash EBITDA by $3.9m in Q3-20, and increasing Cash AEBITDA by $3.9m in Q4-20.

Bridge from Adjusted EBITDA to Adjusted uFCF (Q4-21)

Note: All figures are expressed in $m unless otherwise specified. For definition of APM metrics please refer to page 27.

Adjusted Revenue Reconciliation

($m)	Q4-21	Q4-20	FY-21	FY-20
Statutory Revenue	151.8	120.0	559.5	447.4
Plus: Contract Liability Haircut Amortised	2.2	3.6	12.7	18.6
Plus: Pro Forma Rancher Contribution^{(1)}	-	9.8	3.7	33.1
Adjusted Revenue	154.0	133.4	575.9	499.1

Note:
(1) Adding 3 months, 12 months and 1 month of Rancher for Q3-20, FY-20 and FY-21 respectively.

Adjusted EBITDA Reconciliation

($m)	Q4-21	Q4-20	FY-21	FY-20
Operating Loss per Statutory Account	(19.6)	(29.3)	(200.9)	(8.7)
Minus: Amortisation and Depreciation	33.9	34.4	153.0	135.0
Minus: Separately Reported Items	12.8	24.9	26.9	25.5
Minus: Contract Liability Haircut Amortised	2.2	3.6	12.7	18.6
Minus: Non-recurring Items	5.6	0.6	23.9	21.4
Minus: Share Based Payments(1)	9.1	4.5	175.2	11.8
Minus: Share Based Payments - Employer Taxes	-	-	7.0	-
Plus: Foreign Exchange (unrealised)	4.0	1.5	16.1	(13.5)
Adjusted EBITDA (Statutory Basis, Excluding Rancher Pro Forma Contribution)	48.0	40.2	213.9	190.1
Minus: Adjustment for Actual Rancher Contribution(2)	-	(4.4)	(1.8)	(16.5)
Adjusted EBITDA	48.0	35.8	212.1	173.6

Note: For definition of APM metrics please refer to page 27.

(1) Q4-21 and FY-21 increase in share based compensation driven by pre-IPO option program.

(2) Adding 3 months, 12 months and 1 month of Rancher for Q4-20, FY-20 and FY-21 respectively.

Adjusted PBT Bridge

($m)	Q4-21	Q4-20	FY-21	FY-20
Adjusted Revenue	154.0	133.4	575.9	499.1
Adjusted EBITDA	48.0	35.8	212.1	173.6
Minus: Depreciation - PPE	(1.1)	(1.1)	(4.5)	(4.5)
Minus: Depreciation - Right of use assets	(1.9)	(2.7)	(6.5)	(10.5)
Minus: Amortisation - Purchased Software	(2.1)	(1.8)	(8.1)	(5.9)
Minus: Amortisation - Development Costs	(0.3)	(0.3)	(1.2)	(0.8)
Minus: Net Finance Costs	(20.8)	(15.2)	(58.9)	(61.3)
Adjusted PBT	21.8	14.7	132.9	90.6
% Margin	14.2%	11.0%	23.1%	18.2%

Note: For definition of APM metrics please refer to page 27.

Adjusted Unlevered FCF Bridge

($m)	Q4-21	Q4-20	FY-21	FY-20
Adjusted Cash EBITDA	51.7	28.8	278.2	179.3
Minus: Capex	(2.7)	(0.4)	(4.8)	(2.2)
Plus: Other Working Capital (excl. Def Revenue)	21.8	(12.0)	(20.0)	1.5
Minus: IFRS 15	(11.2)	(6.6)	(36.8)	(22.4)
Minus: IFRS 16	(1.2)	(1.9)	(6.6)	(10.4)
Minus: Cash Tax	(3.6)	(1.3)	(8.0)	(6.3)
Plus: Others	-	(3.0)	(1.8)	(9.4)
Adjusted uFCF	54.8	3.6	200.2	130.1

Note: For definition of APM metrics please refer to page 27.

Q3 ARR & NRR Amendments

	Amended Figures		As Disclosed in Q3-21 Reporting
		Q3-21	Q3-20	Q3-21	Q3-20
SUSE ex-Rancher	ARR ($m)	Unchanged	489.7	431.4
	ARR Growth (%)			13.5%	n.a.
	NRR (%)			110.6%	110.5%
Rancher	ARR ($m)	59.4	26.8	65.8	30.6
	ARR Growth (%)	121.6%	n.a.	115.0%	n.a.
	NRR (%)	157.5%	140.2%	143.4%	137.4%
SUSE	ARR ($m)	549.1	458.2	555.5	462.0
	ARR Growth (%)	19.8%	n.a.	20.2%	n.a.
	NRR (%)	113.3%	103.0%	112.8%	102.9%

Note: For definition of APM metrics please refer to page 27.

SUSE

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SUSE S.A. — Investor Presentation 2022

4510_ip_2022-01-19_ce2ed65f-ddcf-4adc-bf75-24d52af09593.pdf

Q4-21 Results Presentation

Important Notice

Today's Presenters

AGENDA

Business Update

FY-21 – A Great Year for SUSE

FY-21 – Strong Performance

SUSE Delivered on Organic Plan in Q4-21...

...and on M&A – NeuVector Acquisition

NeuVector at a Glance

Strategic Rationale

Financial Impact

A Strong Quarter for New Contracts

Our People

Growing our Team to Drive Growth and Innovation

Highly Engaged and Satisfied Workforce

Successfully Hiring Top Talent

SUSE employee NPS(1) are consistently above average for:

ESG – Q4-21 Progress

ESG Goals

Climate Action

Diversity & Inclusion

Open Source For Good

Business Integrity, Compliance & Governance

Targeted Initiatives

Transverse Initiatives

Philanthropy

Employee Engagement

Disclosure

Strongly Differentiated Product Portfolio in High Growth Markets...

Open & Interoperable

Cloud Native

Mission-critical Workloads

Best-in-Class Support

...Delivering the Most Comprehensive Open Source IT Infrastructure Stack

Financial Update

Strong Financial Results

Delivered on our Guidance

ACV – Strong Contribution From Emerging

ACV by Solutions (\$m)

Highlights by geography

Highlights by RTM

Adjusted Revenue – Exceeds Guidance

Adjusted Revenue by Solutions ($m)

Operating Costs – Continued Investment in Growth

High Levels of Profitability

Continued High Level of Cash Conversions

Continuous De-Leveraging

Consistent ACV Growth Beyond Inherent Quarterly Variability

Quarterly ACV show some inherent variability

LTM ACV shows underlying growth consistently above 20%

Guidance Reflects Strong Growth Trajectory

Global Leader in Open Source Software

Appendix

Alternative Performance Measures (APMs)

Q4-21 – Strong Quarter

Key Financial Metrics By Quarter

Bridge from Adjusted EBITDA to Adjusted uFCF (Q4-21)

Adjusted Revenue Reconciliation

Adjusted EBITDA Reconciliation

Adjusted PBT Bridge

Adjusted Unlevered FCF Bridge

Q3 ARR & NRR Amendments

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SUSE S.A. Investor Presentation 2022