OVH Groupe : OVHcloud - FY2023 Results Presentation

FY23 Annual Results

October 25th, 2023

FORWARD LOOKING STATEMENT

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The following applies to this document, the oral presentation of the information contained in this document made by OVHcloud (the "Company") or any person on behalf of the Company and any question-and-answer session that follows the oral presentation.

This document contains forward-looking statements that involve risks and uncertainties, including references, concerning the Group's expected growth and profitability in the future which may significantly impact the expected performance indicated in the forward-looking statements. These risks and uncertainties are linked to factors out of the control of the Company and not precisely estimated, such as market conditions or competitors' behaviors. Any forward-looking statements made in this document are statements about OVHcloud's beliefs and expectations as of the date of this presentation and should be evaluated as such.

Forward-looking statements include statements that may relate to OVHcloud's plans, objectives, strategies, goals, future events, future revenues or performance, and other information that is not historical information. Actual events or results may differ from those presented in this document due to a number of risks and uncertainties, including those described in the 2022 Universal Registration Document, filed with the French Financial Markets Authority (Autorité des marchés financiers - AMF) on December 20, 2022 under the number R.22-040 and/or in any future updates, amendments thereof or future Universal Registration Document.

All amounts are presented in € million. This may in certain circumstances lead to non-material differences between the sum of the figures and the

subtotals that appear in the tables.

OVHcloud does not undertake, and specifically disclaims, any obligation or responsibility to update or amend any of the information above except as otherwise required by law.

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2

FY23

Sustainable

growth in FY23

€897m

Revenue

€325m

Adj. EBITDA

€25m

Positive unlevered

FCF in H2 FY23

13.4%

Target: 13-14%

36.3%

Target: >36%

24%

Target: 28-32%

16%

Target: 16-20%

LFL revenue growth

Adj. EBITDA margin

Growth Capex

as a % of revenue1

Recurring Capex

as a % of revenue1

1. Based on FY22 average forex rates and excluding M&A.

3

Q4 FY23

key highlights

Strong Q4 FY23 in Cloud business

	+22.8%
+14.5%	Public cloud
Q4 LFL revenue growth
Q4 LFL revenue growth	+16.4%
Total Group
	Private cloud
	Q4 LFL revenue growth

Continued acceleration in Europe

Continued ramp-up of PaaS and Sovereign solutions Confirmed high customer loyalty

Successful cost discipline in H2 FY23

4

FY23 Strategic highlights

Key differentiators to deliver growth & create value

Market structurally poised for

strong long-term growth

Data Sovereignty as a major

driver

Multi & Hybrid cloud

AI as a new growth engine

Only European with best-in-class technological offering

Sustainable cloud	✓	Data sovereignty
	by design			champion

✓ ✓

✓		✓
Integrated model	✓	Best value for money
that creates value

Predictable and

transparent pricing

6

A long-term investment strategy starting to bear fruits

Grow Key Client

Segments

Address Larger Market

Geographic Expansion

Strengthened customer mix with larger accounts

x2	Number of customers
spending more than €1m
annually at OVHcloud
between FY21 and FY23
+29%	ARPAC growth, at Group
FY23level, between FY21 and

1,200+ Number of partners, for indirect channel

Enhanced product

portfolio

Significant investments in

products since FY21

# of PaaS available for customers

10	40
FY21		FY23
Big Data		AI
Network		Database
Compute		Storage

Enablers

Expanded geographical

footprint

Number of locations

12 19

FY21FY24e

Number of countries

8 9

FY21FY24e

Number of datacenters

33 45

FY21FY24e

7

Containers as central piece to move toward Cloud Native applications

Kubernetes monitors application's

workload and automatically deploy and scale up/down containers with already defined parameters

Legacy application		Cloud Native
	Application
		Higher scalability
	Easier upgrade of services
	Limited infrastructure constraints

Kubernetes' offering ramp-up

Revenue

Hardware Capex

Development Capex

FY19

FY20

FY21

FY22

FY23

Kubernetes is OVHcloud's first launched PaaS, with a slower ramp-up than more recently launched PaaS

• Improved Sales & Marketing strategy for PaaS products
• Existing customers are more educated to the offering
• Strengthened "enablers" offering to maximize

cross-sell opportunity

8

OVHcloud is offering the 4 pillars to serve customers' AI use cases

1

Compute, Storage

• • Network
• GPU range to cover all Use Cases, with recently launched A100, L4, L40 and soon available H100
• Powerful Network
• High performing storage

234

Tools for datasets		AI platform &	Expertise
transformation		Solutions
• Data Privacy & Sovereignty	•	AI solutions : AI Training -	• Ability to support customers
• Data Collectors, preparation,		Notebook - Deploy	with implementation of large
labelling (Data Platform)	•	AI App Builder,	AI projects
		AI Endpoint &	• On-going work for industry
		AI Studio - under development	certifications for AI
			workloads

Investing selectively with a clear business model for each pillars

9

FY23 Business highlights