Exasol : Half-yearly financial statements 2021

Half-Year Report 2021

Turning Data into Value

Exasol's world-leading and fastest database for data analytics and data warehousing tech- nology, helps companies and

organizations to turn their ever-increasing data volumes into added value to make better operational and strategic decisions.

Exasol was established in 2000 as a result of a scientific project designed to solve tasks in the field of high-performance computing. From day one, database systems and data analytics were rethought in a revolutionary way - in-memory technology, an MPP (massively parallel processing) architecture and self-optimization as a turbo for the data warehouse. Exasol uses the random access memory (RAM) of computers and servers instead of hard

drives to analyze the data. Processing power in the RAM is a factor of up to 100,000 faster than the speed on hard disks. Exasol's highly specific MPP architecture allows several RAMs to be connected into a kind of "supercom- puter".

With its successful IPO in May 2020, Exasol has ushered a new era of growth. To increase brand awareness and global reach, the focus is on new product initiatives, expanding the partner network, growing the workforce and strengthening sales and marketing functions.

Exasol has over 200 international customers such as Revolut, Zalando, adidas and Piedmont Healthcare.

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Half-Year Report 2021

Content

A message from the Management Board	04	Corporate Social Responsibility	17
Interim Group Management Report	06	Data Security & Privacy Report	24
1.	General corporate information	06
1.1	Business activity	06	Interim Consolidated Financial Statements	27
1.2	Corporate structure and locations	07	Assets	28
1.3	Research and development	08	Equity and liabilities	29
			Consolidated income statement	30
2.	Economic Report of the Exasol Group	08	Consolidated statement of cash flows	31
2.1	The macroeconomic environment	08	Consolidated statement of changes
2.2	The industry environment	08	in equity	32
2.3	Business trend in the first half of 2021	09
2.4	Financial and non-financial		Notes to the consolidated
	performance indicators	10	financial statements	33
2.5	Results of operation, financial
	and net asset position	10	Appendix - Notes to the
2.6	Overall assessment by the		Consolidated Financial Statements	45
	Executive Board	14	Movements in the Group's fixed assets	46
3.	Opportunities and risk report	14	Responsibility statement	48
4.	Forecast	15	Financial Calendar	49
4.1	Macroeconomic environment
	and forecast	15
4.2	Industry-specific environment	15
4.3	Company outlook and expected
	business performance	15

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A message from the Management Board

A message from the Management Board

Dear Shareholders and Business Associates,

Aaron Auld, CEO

Exasol AG

At Exasol, the year 2021 will continue to be marked by the investment cycle we have already initiated. With the proceeds from the IPO and the capital

increase at the end of last year, we have begun to invest in our locations and to significantly expand the number of our highly specialized employees in the German-speaking countries, the UK and the USA. As of 30 June 2021, the Exasol team has increased by 138 to 288 employees compared to the same time last year and is expected to increase to more than 300 by the end of 2021. Despite the organizational challenges that such an expansion brings in terms of integrating personnel and designing processes, Exasol posted respectable growth in the first half of the year.

At the end of the second quarter, annual recurring revenue (ARR), our key financial indicator, amounted to EUR 26.5 million, up 27.4% compared to the end of the first half of 2020. The slightly weaker ARR growth from April to June compared to the first quarter of 2021 is due to delays in larger pro- jects, which we are confident will be completed before the end of this financial year. Overall, we have a strong pipeline of new business, so that we remain confident that we will achieve our target of more than 45% growth in annual recurring revenue to over EUR 35 million by the end of 2021.

In addition to expanding our workforce, we focused on expanding our sales and marketing structures in the first half of the year to strengthen our positioning and visibility in our core markets. In total, we signed 11 new customer contracts and entered into 13 new partnerships that strengthen our sales activities and global reach.

The market for high-quality data analytics is still in a state of upheaval and offers huge potential. Conventional database management systems do not meet today's customer requirements in terms of complexity, performance, usability and scalability in data analytics. This is exactly where our strengths come into play, as our solution has been

A message from the Management Board

geared to these requirements. Our new cloud- native SaaS (Software-as-a-Service) solution, which will be available to the first customers in the AWS cloud (Amazon Web Services) starting in the third quarter, enables companies to use our technology even more intuitively, flexibly and tailored to their individual needs, and most importantly to make use of cloud elasticity to choose between a data volume-based and consumption -based payment method.

We were also very active in the field of sustainability in the first half of 2021, as you can see from our CSR report on page 17-23 of this half-year report. Exasol has set up a Green Team to drive environmentally friendly initiatives throughout the company, from initiating and monitoring carbon reduction projects at all locations to training the entire team on sustainability awareness. From the product perspective, Exasol is committed to supporting the clean tech movement by providing highly efficient solutions that enable our customers to save time and energy costs.

Overall, we look forward to the coming months with confidence. We firmly believe that our extensive investments in employees, locations, technologies and processes will already pay off in 2021,

but especially and more significantly in the coming year and enable us to further accelerate our growth.

I am also particularly pleased about the strengthening of the Executive Board by Jan-Dirk Hen- rich, who has been on board since 1 September and will accompany Exasol on its further growth path as its new CFO and COO.

I thank you for your trust and support and send you my warmest regards,

Aaron Auld | CEO

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