 Investor Presentation
January 2014
Exhibit 99.1 |
 Safe
Harbor Statement ©
Exa Corporation Confidential
2
Today’s presentation includes forward-looking statements intended to qualify for the
Safe Harbor from liability established by the Private Securities Litigation Reform Act of
1995.These forward-looking statements, including statements regarding our financial
expectations, demand for our solutions and growth in our markets, are subject to risks,
uncertainties and other factors that could cause actual results to differ materially from
those suggested by our forward-looking statements. These factors include, but are not
limited to, the risk factors described in our Annual Report on Form 10-K for the year
ended January 31, 2013, as filed with the SEC on April 9, 2013. Forward-looking
information in this presentation represents our outlook as of today, and we do not
undertake any obligation to update these forward-looking statements. During today's presentation we may refer to our Adjusted EBITDA. This is a non-GAAP
financial measure that has been adjusted for certain non-cash and other items, and that
is not computed in accordance with generally accepted accounting principles. The
GAAP measure most comparable to Adjusted EBITDA is our net income (loss). A
reconciliation of our historical Adjusted EBITDA to our net income (loss) is included in
our Form 10-K filed with the SEC.
|
 Company Overview
90+
14 of the top 15 passenger
vehicle manufacturers
250+
10+
EBITDA positive past 4 years
Highly recurring and visible
business model
Employees
10
HQ in Burlington, MA
Detroit, Japan, Germany,
Korea, France, China
3
©
Exa Corporation Confidential
Aerodynamics
Thermal Acoustics Leading Provider of Software
that Enables Simulation-Driven Product Design
Years of
Revenue Growth
Vehicle
Manufacturers
as Customers
Global
Offices |
 Key Investment
Highlights ©
Exa Corporation Confidential
4
Proprietary, Market Leading Technology
Tangible, Immediate Value Proposition
Growing Multi-billion Dollar Market
Opportunity in Transportation Alone
Top-tier Global Customers
Highly-Visible, Consumption-based
Licensing Model
Experienced Management Team |
 Transportation Market Requirements
©
Exa Corporation. All rights reserved.
5
Aerodynamics
Faster Turnaround
Time
Weight Reduction
Fewer Prototypes
Increased Automation
New Powertrains
Simulation-based
Design
Source: EPA
(1) The United States passenger car and light truck CAFE standard continues to rise to 56.2
MPG by 2025 (1)
0
10
20
30
40
50
60
1975
1985
1995
2005
2015
2025
U.S. CAFE |
 Traditional Development Process
©
Exa Corporation. All rights reserved.
6
Months
Expensive ($bn),
cumbersome
& time-consuming
Brute-force
approach |
 Exa‘s Vehicle Development Process
©
Exa Corporation. All rights reserved.
7
Days
Proprietary Algorithms
Geometric Complexity
Accurate Results |
 Global Customer
Base ©
Exa Corporation. All rights reserved.
8
Passenger Vehicle
Truck & Off-Highway
Supplier/Other
Aerospace |
 How
Tesla Uses Exa’s PowerFLOW The Problem
Develop brand new zero emissions sedan
5+2 passengers
World class design & performance
Long driving range on a single charge
9
©
Exa Corporation Confidential
The Results
265
mile
range
–
due
to
Cd
=
0.24
0.32
0.27 0.24 Reduced
wind noise |
 Customer Case Studies
10
©
Exa Corporation. All rights reserved.
The Challenge
Meet EPA Tier IV emissions standards
Increasing heat rejection
Requiring increased cooling
Meet New Noise Regulations
Improve Fuel Efficiency
The Results
Cooling package met cooling targets
Reduced Fan noise by 3+ dBA
Reduced HP consumption by 25+ HP |
 Customer Engagement Model
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Exa Corporation Confidential
11
Annual
Annual
Renewals
Renewals
Deeper
Deeper
Deployment
Deployment
Upgrades
Upgrades
New
New
Applications
Applications
Capacity-Based Licensing
OnDemand
or On Premise |
 PowerFLOW Product Suite
Simulation Preparation
(User-based License)
Simulation
PowerDELTA
®
Import, sort and organize CAD model
Apply parametric mesh features
Generate surface meshes &
check quality
PowerFLOW
®
Automatic fluid discretization
Automatic multi-processor
parallelized simulation
~80% of license revenue
PowerINSIGHT
™
Streamline & automate the
results generation,
analysis, and reporting process
PowerVIZ
®
Analyze results and flow structures
with interactive 3D data
visualization, movies, & graphs
PowerTHERM
®
Fully-coupled 3D
conduction
& radiation solver
PowerCOOL
®
Fully-coupled
cooling system
model
PowerCASE
™
Set up simulation case parameters
& boundary conditions
PowerCLAY
®
Morph mesh real-time
for rapid design iteration
& optimization
PowerACOUSTICS
®
Analyze and predict acoustic noise
transmission to the interior
Design Iterations
Simulation Analysis
(User-based License)
(Consumption-based License)
12
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Exa Corporation Confidential |
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Exa Corporation Confidential
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Highest Degree of Simulation Accuracy
Deep Domain Expertise
Faster Turnaround Time
Return on Investment
Differentiated Go-to-market Strategy
Why We Win |
 Growth Strategy
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Exa Corporation Confidential
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•
Migrating from
physical to digital-
based approaches
Penetrate New
Geographies
Enable
Additional
Applications &
Solutions
Add New
Customers in
Ground
Transportation
Explore New
Verticals
Selectively
Pursue
Acquisitions
•
Identify new
applications to
address customer
needs
•
Significantly
underpenetrated
•
Adjacent markets
•
Expanding
presence in BRIC
•
Core technology is
extendable to
Aerospace, Oil &
Gas and Power
Generation
among others
•
Complementary
businesses &
technologies
Deepen Existing
Customer Base |
 Key
Financial Highlights ©
Exa Corporation Confidential
15
Strong, Consistent Revenue Growth
Recurring & Predictable Business Model
Attractive Long-term Model
Profitable & Cash Flow Positive |
 Consistent Revenue Growth
©
Exa Corporation Confidential
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Note: We changed from a December 31 calendar year-end to a January 31st fiscal
year-end at the end of December 2006. |
 History of Profitability
17
©
Exa Corporation Confidential
Adjusted EBITDA
FYE Jan 31
Adjusted EBITDA Margin
FYE Jan 31
Note: Please see Appendix for detailed definition and reconciliation of Adjusted EBITDA to the
comparable GAAP financial measure of net income (loss). We define EBITDA as
net income (loss), excluding depreciation and amortization, interest expense, loss on extinguishment of debt, other income (expense), foreign
exchange gain (loss) and provision for income taxes. We define Adjusted EBITDA as EBITDA,
excluding non-cash share-based compensation expense. |
 60%+ of our
annual revenue was attributable to contracts in place at
the beginning of the fiscal year
Annual consumption-based licenses
Increased consumption of simulation
capacity drives growth
Delivered on-premise or on-demand
Ratable revenue recognition
Project revenue is primarily derived
from simulation capacity
18
©
Exa Corporation Confidential
Highly Recurring & Predictable Model
Revenue Visibility
FY13 |
 ©
Exa Corporation Confidential
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Revenue Mix
Note: Data as of FY 2013
United States
23%
Germany
16%
France
15%
United
Kingdom
8%
Sweden
4%
Japan
20%
Korea
9%
Other
5%
Revenue by Geography |
 Managing
business with focus on increasing revenue growth rate while maintaining positive
Adjusted EBITDA Continue to invest in Sales team to deepen existing customer
penetration and add new customers
Invest in additional applications & solutions to deepen penetration at
existing customers
Expand into other verticals including Aerospace and Oil & Gas
20
©
Exa Corporation. All rights reserved.
Target Model |
 Appendix
©
Exa Corporation Confidential |
 ©
Exa Corporation Confidential
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*See Appendix
Key Financial Metrics
FY11
FY12
FY13
1Q14
2Q14
3Q14
Revenue
License
$30.6
$38.8
$41.2
$10.7
$10.7
$11.1
Project
7.3
7.2
7.7
1.8
2.0
3.0
Total Revenue
$37.9
$45.9
$48.9
$12.5
$12.7
$14.1
Revenue Growth
6%
21%
6%
11%
7%
12%
Operating Expenses
Cost of Revenues
9.9
12.1
14.2
3.7
3.8
4.0
Sales & Marketing
6.1
6.2
7.1
2.1
2.2
2.2
Research & Development
12.8
14.5
16.7
4.4
4.5
4.4
General & Administrative
6.0
8.1
9.0
2.8
2.4
2.7
Non-GAAP Operating Income*
$3.4
$5.7
$3.3
($0.1)
$0.2
$1.1
Adj. EBITDA*
$4.8
$7.2
$4.9
$0.3
$0.6
$1.6 |
 Adjusted EBITDA and Non-GAAP Operating Income
–
Definitions and Reconciliations
23
©
Exa Corporation. All rights reserved.
Non-GAAP Operating Income
April 30,
July 31,
October 31,
(In thousands)
2011
2012
2013
2013
2013
2013
Operating (loss) income
3,116
$
5,035
$
1,960
$
(457)
$
(184)
$
678
$
Add back:
Stock based compensation expense
281
636
924
245
251
350
Amortization of acquired intangible assets
0
65
383
88
87
88
Non-GAAP operating income
3,397
$
5,736
$
3,267
$
(124)
$
154
$
1,116
$
Adjusted EBITDA Reconciliation
April 30,
July 31,
October 31,
(In thousands)
2011
2012
2013
2013
2013
2013
Net (loss) Income
691
$
14,138
$
763
$
(541)
$
(798)
$
516
$
Depreciation and amortization
1,356
1,502
2,009
496
543
522
Interest expense, net
1,411
1,284
1,631
377
171
67
Loss on extinguishment of debt
0
0
0
0
755
0
Other (income) expense
(10)
213
(529)
(2)
(3)
(2)
Foreign exchange loss (gain)
198
106
(17)
(37)
93
(31)
Provision for income tax
826
(10,706)
112
(254)
(402)
128
EBITDA
4,472
6,537
3,969
39
359
1,200
281
636
924
245
251
350
Adjusted EBITDA
4,753
$
7,173
$
4,893
$
284
$
610
$
1,550
$
Three Months Ended
Three Months Ended
Year Ended January 31,
Year Ended January 31,
Non-cash, share based
compensation expense
measures that exclude certain amounts. These non-GAAP measures are not in accordance with,
or an alternative for, generally accepted accounting principles in the United States.
The GAAP measures most comparable to Non-GAAP Operating Income and Adjusted EBITDA are GAAP income from operations and GAAP net income (loss), respectively.
Reconciliations of these non-GAAP financial measures to the corresponding GAAP measures
are included above. We define non-GAAP operating income as GAAP operating income
excluding non-cash, stock-based compensation expense and amortization of acquired intangible assets. We
define EBITDA as net income (loss), excluding depreciation and amortization, interest
expense, loss on extinguishment of debt, other income (expense), foreign exchange gain
(loss) and provision for income taxes. We define Adjusted EBITDA as EBITDA, excluding
non-cash share-based compensation expense. Note:
To supplement our consolidated financial statements, which are presented on a GAAP basis, we
disclose Non-GAAP Operating Income and Adjusted EBITDA, non-GAAP |
 How
JLR Uses Exa’s PowerFLOW The Problem
Reduce joint fleet CO2 to meet global
emissions target by 2020+
Portfolio Diversification
Reduce cost of prototypes
Enable digital sign-off
24
©
Exa Corporation Confidential
The Results
Thermal Mgmt & Aerodynamic prototypes
eliminated prior to production tooling release
Further elimination opportunities for
Aeroacoustics & water mgmt in development |
 Customer Case Studies
25
©
Exa Corporation. All rights reserved.
The Problem
Demand for more fuel efficient trucks
Top buying requirement
The Results
24% reduction in aerodynamic drag
12% improvement in fuel economy
~$5,600 annual fuel savings per vehicle |
 Customer Case Studies –
Trailer Devices
26
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Exa Corporation. All rights reserved. |
 Ground Transportation Applications
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Exa Corporation Confidential
27 |