Dynatrace : ESG Report

2023 Global Impact Report

©2023 Dynatrace

What's inside

A​ message from our CEO	3
About Dynatrace	4
About our inaugural Global Impact Report	6
Our ESG strategy	7
Vision and approach	7
Materiality and oversight	8
Sustaining our environment	10
Minimizing our carbon footprint	11
Prioritizing the use of clean energy	13
Adopting operationally sustainable practices in our workplaces	13
Customer ESG enablement - the Dynatrace® Carbon Impact app	15

People, culture, and community	16
Strengthening our approach to diversity, equity, inclusion,
and belonging (DEIB)	17
Optimizing the Dynatrace workplace experience	20
Building out our learning and development program	20
Wellness	21
Saving for the future: compensation and benefits	21
Community service and volunteering	22
Governance and ethics	24
Board and corporate governance	25
Data protection, privacy, and security	26
Technology disruptions	28
Ethics and compliance	28
Appendix	31
SASB and GRI Disclosures	31
Additional Information	40

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A message from our CEO

At Dynatrace, we're united by a singular vision: a world where software works perfectly. We innovate, push boundaries,

and evolve in pursuit of this vision. Advancing our environmental, social, and governance (ESG) strategy is key to our evolution. In this report, we share our approach to understanding, measuring, and reporting on the ESG topics that are most important to Dynatrace and our stakeholders.

Dynatrace has experienced significant growth in recent years. Over our last three fiscal years, our revenue more than doubled and our workforce grew more than 80% to over 4,200 Dynatracers. We now serve more than 3,600 customers in over 90 countries, representing many of the world's largest organizations. As we continue to grow, I believe that our opportunity - and responsibility - to be more sustainable, equitable, and ethical only amplifies.

Each year, we want to continue making progress in our ESG programs. In 2022, we undertook a detailed analysis to identify the areas of ESG most important to Dynatrace and the associated risks and opportunities they present. We shared those impacts in our 2022 ESG Materiality Update. This inaugural 2023 Global Impact Report builds on that foundation, serves as a baseline for where we stand today, and sets our path forward.

Since publishing our 2022 ESG Materiality Update, we've gathered additional stakeholder feedback and organized our ESG initiatives under three key pillars: Sustaining our environment; People, culture, and community; and Governance and ethics. We've continued to invest time, resources, and tools to advance our ESG programs, including establishing an ESG Executive Steering Committee to guide our approach and drive our initiatives.

As ESG becomes more embedded in our business practices and strategy, there's a role for every member of the Dynatrace team to help drive our progress. I continue

to be inspired by the company values that focus our interactions and our daily work: Innovate with Passion; Engage with Purpose; and Win with Integrity. These values, embodied by every Dynatracer, will enable us to advance our ESG initiatives.

While we celebrate the progress that we've made over the last year, we know that we have more work to do. We invite you to review our progress so far and we look forward to updating you at future stages of our journey.

Rick McConnell

Chief Executive Officer

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ABOUT DYNATRACE

About Dynatrace

Dynatrace exists to make the world's software work perfectly. Our unified platform combines broad and deep observability and continuous runtime application security with the most advanced AIOps to provide answers and intelligent automation from data at an enormous scale. This enables innovators to modernize and automate cloud operations, deliver software faster and more securely, and ensure flawless digital experiences. That is why the world's largest organizations trust Dynatrace® to accelerate digital transformation.

Mission, purpose, vision, and values

• Our mission is to deliver answers and intelligent automation from data at an enormous scale.
• Our purpose is to enable flawless and secure digital interactions.
• Our vision is a world where software works perfectly.
• Our values are Innovate with Passion, Engage with Purpose, and Win with Integrity

By the numbers

18 years

Founded in 2005

2019

Public company listed

on the New York Stock Exchange

(symbol: DT)

3,600+

customers in more than 90 countries

4,200+

employees in more than 30 countries

FY23 financial highlights

$1.247B

Total annual recurring revenue (ARR);

total revenue of $1.159 billion

29%

Adjusted ARR growth and total revenue growth on a constant currency basis

8%

GAAP operating margin;

non-GAAP operating margin of 25%

31%

GAAP operating cash flow margin;

free cash flow margin of 29%

~$555M

of cash and cash equivalents

as of March 31, 2023

Industry recognition

Gartner® named Dynatrace a Leader in the 2023 Magic Quadrant™ for Application Performance Monitoring and Observability. Dynatrace was positioned furthest for Completeness of Vision and highest for Ability

to Execute.

Dynatrace also ranked #1 in all six Use Cases in the 2023 Gartner Critical Capabilities for Application Performance Monitoring and Observability report.

Attribution and disclaimers can be found on page 40.

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ABOUT DYNATRACE

Our platform

Artificial intelligence (AI)

AI is transforming business. In July 2023, we announced that we are expanding our Davis® AI engine to create the observability and security industry's first hypermodal AI, converging fact- based, predictive AI and causal AI insights with new generative AI capabilities.

The expanded Davis AI will boost productivity across business, development, security, and operations teams by delivering generative AI recommendations fueled by precise context from predictive AI and causal AI techniques that reflect the unique attributes of each organization's hybrid and multicloud ecosystem. It will also simplify and accelerate tasks, such as creating automations and dashboards, to enable people to focus on higher-value activities for faster, better, and more secure innovation.

As part of our initiatives, we will continue to be mindful of ethical considerations and responsible use of AI.

For additional information about our use of AI at Dynatrace, please visit our website and blog.

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