PRESS RELEASE : SUSE S.A.: Quarterly Statement Q3 -3-

SUSE S.A. will be included in the SDAX as well as the TecDAX with effect from September 20, 2021.

ESG

Environmental, Social and Governance (ESG) concerns continue to lie at the core of SUSE's open and innovative business model, spanning from how we conduct business to our people and the impact we have on society. The ESG function is established under the direct authority of the CEO.

In Q3, SUSE cemented gains in corporate governance and internal policies management by launching relevant and refreshed versions of key policies including our Employee Code of Business Ethics (COBE), Diversity, Inclusion and Equal Opportunities, and Anti-Harassment and Anti-Bullying, to count others. This was complemented by mandatory companywide training on pertinent topics starting with Diversity & Inclusion.

We also made strides toward our 30% women in leadership goal, establishing key partnerships with organizations such as WeAreTechWomen to support the career progression of our women.

Our impact on society continued unabated as we closed our SUSE-Udacity cloud-native foundation course with over 4,000 learners from more than 100 countries completing the course. SUSE awarded 300 scholarships, and one scholarship recipient, Damilola Banjoko, commented, "The SUSE foundation scholarship gave me immense first-hand working knowledge on how to include cloud concepts in my existing work and how to apply that in future projects."

SUSE also continued to progress our Climate Action agenda, leveraging insights from our greenhouse gas emissions exercise to ensure our office sites are greener and more climate friendly spaces. We are also on track to set an ambitious climate impact target in line with best practice.

Progress also continues toward enhanced public disclosure which will be made from early 2022, based on the Global Reporting Initiative (GRI) Sustainability and CDP standards.

Outlook

Based on the strength of Q3 we now expect to report full year Adjusted Revenue in the top half of the previously specified pro forma range and to report Adjusted Cash EBITDA above the top of the pro forma range. The pro forma range is the original guidance range adjusted for the inclusion of Rancher from the start of the financial year.

The original guidance for Full Year 2021 Adjusted Revenue, given at the time of the IPO, was for a range of USD550 million to USD570 million. This was based on the inclusion of Rancher from acquisition, one month after the start of the SUSE financial year. As we are now primarily using Alternative Performance Metrics on a pro forma basis, including the extra month of November for Rancher, the comparable range for the guidance is USD554 million to USD574 million (as Rancher had revenues of USD3.7 million in the month of November 2020).

Given our strong performance so far this year and our visibility for the rest of the year, we are now confident the outcome for the full year will be in the top half of the adjusted pro forma revenue range and still expect to achieve an Adjusted EBITDA margin for the year of mid-30s percent.

The original guidance for Full Year 2021 Adjusted Cash EBITDA, given at the time of the IPO, was for a range of USD245 million to USD265 million. On a pro forma basis, including the extra month of November for Rancher, the comparable range for the guidance is USD246 million to USD266 million (as Rancher had Adjusted Cash EBITDA of USD0.9 million in the month of November 2020).

Given the revised expectations for Adjusted Revenue, and the continued increase in longer term contracts that we see contributing to Deferred Revenue (powering future revenue unwind and predictability), we now expect to report Adjusted Cash EBITDA above the upper end of the previously communicated range, with Deferred Revenue in the low to mid-teens as a percentage of revenue.

Apart from these adjustments, our guidance for 2021 and the medium-term guidance remains unchanged.

Additional Information

About SUSE

SUSE is a global leader in innovative, reliable and enterprise-grade open source solutions, relied upon by more than 60% of the Fortune 500 to power their mission-critical workloads. We specialize in Enterprise Linux, Kubernetes Management, and Edge solutions, and collaborate with partners and communities to empower our customers to innovate everywhere - from the data center, to the cloud, to the edge and beyond. SUSE puts the "open" back in open source, giving customers the agility to tackle innovation challenges today and the freedom to evolve their strategy and solutions tomorrow. The company is headquartered in Luxembourg and employs nearly 2000 people globally. SUSE is listed in the regulated market (Prime Standard) of the Frankfurt Stock Exchange.

For more information, visit www.suse.com.

Contacts

Investors: Jonathan Atack Investor Relations, SUSE Phone: [phone] Email: [e-mail] Media: Finn McLaughlan Kekst CNC Phone: [phone] Email: [e-mail] Webcast Details

Melissa Di Donato (CEO) and Andy Myers (CFO) will host an analyst and investor conference call at 2:00 PM CEST / 1:00 PM BST on September 16, 2021, to discuss the results.

The audio webcast can be followed via https://www.webcast-eqs.com/suse20210916. A replay will be available on the Investor Relations website. The accompanying presentation can also be downloaded from the Investor Relations website.

Important Notice

Certain statements in this communication 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 communication.

Financial Calendar

Date          Event 
Jan 20, 2022  Release of Q4 results / Analyst conference call 
Mar 24, 2022  Annual General Meeting 

APPENDIX 1 Statutory Financials

IFRS Income Statement

USD USD millions                          Q3     Q3 Growth    Q3 YTD  Q3 YTD Growth 
                                      2021   2020      %      2021    2020      % 
 
Revenue                              148.0  111.7    32%     407.7   327.4    25% 
Cost of sales                       (12.1)  (5.8)   109%    (32.0)  (19.6)    63% 
Gross profit                         135.9  105.9    28%     375.7   307.8    22% 
Operating expenses                 (126.1) (50.2)   151%   (437.9) (186.6)   135% 
Amortization of intangible assets   (37.7) (29.3)    29%   (111.1)  (89.4)    24% 
Depreciation - PPE                   (1.1)  (1.6)   -31%     (3.4)   (3.4)     0% 
Depreciation - Right of Use Assets   (1.5)  (1.9)   -21%     (4.6)   (7.8)   -41% 
Operating loss                      (30.5)   22.9     nm   (181.3)    20.6     nm 
Net finance costs                    (8.1)  (5.8)    40%    (38.1)  (46.1)   -17% 
Share of losses on associate         (0.5)  (0.8)   -38%     (1.6)   (2.0)   -20% 
Loss before tax                     (39.1)   16.3     nm   (221.0)  (27.5)     nm 
Taxation                               8.8  (2.9)     nm      51.0     4.9     nm 
Loss for the period                 (30.3)   13.4     nm   (170.0)  (22.6)     nm 

SUSE S.A. and its subsidiaries ("the SUSE Group")

Interim Condensed Consolidated Statement of Comprehensive Income (unaudited) For the nine months ended 31 July 2021

                                                     Nine months ended 31 July 2021     Nine months ended 31 July 2020 
                                                                Separately                         Separately 
Income statement:                                    Headline     reported     Total    Headline     reported     Total 
                                                                     items                              items 
                                                      USUSD'000      USUSD'000   USUSD'000     USUSD'000      USUSD'000   USUSD'000 
Revenue                                               407,730            -   407,730     327,351            -   327,351 
Cost of sales                                        (32,024)            -  (32,024)    (19,587)            -  (19,587) 
Gross profit                                          375,706            -   375,706     307,764            -   307,764 
Selling and distribution costs                      (107,831)            - (107,831)   (101,384)            - (101,384) 
Research and development costs                       (73,441)            -  (73,441)    (53,773)            -  (53,773) 
Administrative expenses                             (243,060)     (14,061) (257,121)    (30,866)        (605)  (31,471) 
Reversal of / (impairment loss) on trade                  433            -       433          86            -        86 
receivables 
Operating (loss)/ profit before depreciation and     (48,193)     (14,061)  (62,254)     121,827        (605)   121,222 
amortization 
 
Amortization of intangible assets                   (111,063)            - (111,063)    (89,426)            -  (89,426) 

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September 16, 2021 01:30 ET (05:30 GMT)