EXA CORP - FORM 8-K - EX-99.1

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8-K - 8-K - EXA CORP	d397943d8k.htm

Canaccord Genuity

Growth Conference

August 16, 2012

Exhibit 99.1

Safe Harbor Statement

Today’s presentation includes forward-looking statements intended to qualify for the

Safe

Harbor

from

liability

established

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 registration

statement on Form S-1, declared effective by the SEC on June 27, 2012. 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 and Adjusted

Operating Income. These are non-GAAP financial measures that have been adjusted

for certain non-cash and other items, and that are not computed in accordance with

generally accepted accounting principles. The GAAP measure most comparable to

Adjusted

EBITDA

our

net

income

(loss).

The

GAAP

measure

most

comparable

Adjusted

Operating

Income

our

operating

income.

Reconciliations

our

historical

Adjusted EBITDA to our net income (loss) and our Adjusted Operating Income to our

operating income are included herein.

QUIET PERIOD: Second Quarter ended July 31, 2012

Initial Public Offering Summary

Issuer

Exa Corporation

Listing / Ticker

NASDAQ / “EXA”

Offering Size

$62.8 million

Shares Offered

6.28 million (4.2 million primary and 2.1 million secondary)

Price

$10.00

Pricing Date

June 28, 2012

Use of Proceeds

Working capital & general corporate purposes

Lock-Up Period

180 days

Bookrunner

Stifel Nicolaus Weisel

Co-Managers

Baird, Canaccord Genuity, Needham

Company Overview

Leading Provider of Software that Enables

Simulation-Driven Product Design

90+

13 of the top 15 passenger

vehicle manufacturers

200+

EBITDA positive past 3 years

Highly recurring and visible

business model

Employees

*FY 2011 –

FY 2012

HQ in Burlington, MA

Detroit, Japan, Germany,

Korea, France, China

Aerodynamics Thermal Acoustics

Revenue

Growth*

21%

Global

Offices

Vehicle

Manufacturers

as Customers

Key Investment Highlights

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

Efficiency2

Source: EPA

(1) The United States passenger car and light truck CAFE standard continues to rise to 56.2 MPG by 2025

Fewer Prototypes

Increased Automation

Faster Turnaround

Time

Simulation-based

Design

Aerodynamics

Weight Reduction

New Powertrains

1975

1985

1995

2005

2015

2025

U.S. CAFE

(1)

Traditional Development Process

Months

Expensive ($bn),

cumbersome

& time-consuming

Brute-force

approach

Design,

Redesign

Build/Rebuild

Physical

Prototype

Test in

Windtunnel,

Analyze

Results

Exa‘s Vehicle Development Process

Proprietary Algorithms

Geometric Complexity

Accurate Results

Days

Global Customer Base

Passenger Vehicle

Truck & Off-Highway

Supplier/Other

Aerospace

The Problem

Reduce joint fleet CO2 to meet global

emissions target by 2020+

Portfolio Diversification

Reduce cost of prototypes

Enable digital sign-off

The Results

Thermal Mgmt & Aerodynamic prototypes

eliminated prior to production tooling release

Further elimination opportunities for

Aeroacoustics & water mgmt in development

How JLR Uses Exa’s PowerFLOW

Customer Engagement Model

Annual

Renewals

Deeper

Deployment

Upgrades

New

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)

Why We Win

Differentiated Go-to-market Strategy

Return on Investment

Deep Domain Expertise

Faster Turnaround Time

Highest Degree of Simulation Accuracy

Customer Case Studies

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

The Problem

Mandatory 90% reduction in nitrous

oxides for heavy vehicles

The Results

Saved product costs by minimizing design changes

Reduced number of physical test stages from

twenty per vehicle design to three

Saved millions of dollars in prototype testing costs

Migrated from physical test processes requiring

more than 60 days to a digital test process

requiring 6 days per iteration

Growth Strategy

•

Migrating from

physical to digital-

based approaches

•

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

Enable

Additional

Applications &

Solutions

Add New

Customers in

Ground

Transportation

Penetrate New

Geographies

Explore New

Verticals

Selectively

Pursue

Acquisitions

Ed Furlong

Chief Financial Officer

Key Financial Highlights

Strong, Consistent Revenue Growth

Recurring & Predictable Business

Model

Profitable & Cash Flow Positive

Attractive Long-term Model

Consistent Revenue Growth

$4.6

$8.0

$12.8

$16.3

$20.3

$28.0

$34.1

$35.6

$37.9

$45.9

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Revenue

$MM (FYE Jan 31)

Note: We changed from a December 31 calendar year-end to a January 31st fiscal year-end at the end of December 2006.

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, 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.

Increasing EBITDA

$(3.0)

$(5.5)

$5.0

$4.7

$7.1

2008

2009

2010

2011

2012

Adjusted EBITDA

$MM (FY E Jan 31)

(10.6%)

(16.2%)

14.2%

12.3%

15.4%

2008

2009

2010

2011

2012

Adjusted EBITDA Margin

(FYE Jan 31)

Renewals on base capacity

Renewals including upgrades

and expanded capacity

100%

60%+ of our annual revenue was

attributable to contracts in place at

the beginning of the fiscal year

We expect our annual license revenue

renewal rate with capacity expansion

to remain over 100%

We expect to maintain a license

revenue renewal rate in the range of

85% to 100%

Highly Recurring & Predictable Model

97%

87%

80%

91%

97%

140%

116%

95%

113%

123%

2008

2009

2010

2011

2012

License Renewal Rate

(FY E Jan 31)

Note: We compute our license revenue renewal rate for any fiscal year by identifying the customers from whom we derived license revenue in the prior fiscal year

and dividing the dollar amount of license revenue that we receive in the current fiscal year from those customers by the dollar amount of license revenue we

received from them in the prior fiscal year.

64%

100%

12%

20%

Revenue Visibility

(FY E Jan 31)

Renewals

New

Licenses

Projects

New &

Renewal

Licenses at

Beginning of 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

10 –

15% of project revenue is in

deferred revenue at beginning of year

Revenue Detail

Note: Revenue visibility percentages are management estimates for fiscal year 2013.

United

States

Japan

Korea

France

Germany

United

Kingdom

Sweden

Other

License

Revenue

Project

Revenue

Revenue Mix

84%

16%

License versus Project Revenue

23%

22%

19%

13%

Revenue by Geography

Note: Data as of FY 2012

Managing business with focus on revenue growth with steady

improvement in Adjusted EBITDA margin

Continue to invest in Sales team to deepen customer

penetration and add new customer names

Improve margins due to operating leverage, especially in

R&D and G&A

Targeting mid twenties Adjusted EBITDA margin over time

Target Model

Appendix

Revenue

License

$26.8

$30.6

$38.7

$10.0

Project

8.8

7.3

7.2

1.3

Total Revenue

$35.6

$37.9

$45.9

$11.3

Revenue Growth

4.4%

6.4%

21.1%

10.2%

Operating Expenses

Cost of Revenues

9.9

12.0

3.2

Sales & Marketing

5.2

6.0

6.1

1.6

Research & Development

12.5

12.6

14.2

4.1

General & Administrative

5.6

6.3

7.9

1.9

Adj. Operating Income

$2.3

$3.1

$5.7

$0.5

Adj. EBITDA

$5.0

$4.7

$7.1

$1.0

FY 2011

FY 2012

Q1 FY13

Key Financial Metrics

FY 2010

Adj. excludes non-cash, share-based compensation expense of $1.406, $0.281, $0.636, and $0.241 for FY2010, FY2011, FY2012, and Q1 FY2013 respectively.

Please see next slide for detailed definition and reconciliation of Adjusted EBITDA to the comparable GAAP financial measure of net income (loss).

Adjusted EBITDA –

Definition and Reconciliation

Exa Corporation

Adjusted EBITDA Reconciliation

(In thousands)

Three Months Ended

Year Ended January 31,

April 30,

2008

2009

2010 Restated

2011 Restated

2012

2011 Restated

2012

Net (loss) Income

$ (7,514)

$ (9,846)

$ (1,013)

$ 395

$ 14,456

238

Depreciation and amortization

2,043

2,853

2,702

1,562

1,405

323

460

Interest expense, net

1,430

1,218

672

1,411

1,284

270

412

Other (income) expense

(15)

(12)

(10)

213

(66)

Foreign exchange loss (gain)

560

(549)

766

198

106

464

Provision for income tax

419

441

521

839

(11,040)

390

(84)

EBITDA

(3,077)

(5,812)

3,636

4,395

6,424

1,619

733

Non-cash, share based

compensation expense

113

291

1,406

281

636

241

Adjusted EBITDA

$ (2,964)

$ (5,521)

$ 5,042

$ 4,676

$ 7,060

$ 1,652

$ 974

Note:

supplement

our

consolidated

financial

statements,

which

are

presented

GAAP

basis,

disclose

Adjusted

EBITDA,

non-GAAP

measure

that

excludes certain

amounts. This non-GAAP measure is not in accordance with, or an alternative for, generally accepted accounting principles in the United States. The GAAP measure most comparable

to Adjusted EBITDA is GAAP net income (loss). A reconciliation of this non-GAAP financial measure to the corresponding GAAP measure is included above.

We define EBITDA as net income (loss), excluding depreciation and amortization, interest expense, and 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. Our management uses this non-GAAP measure when

evaluating

our

operating

performance

and

for

internal

planning

and

forecasting

purposes.

believe

that

this

measure

helps

indicate

underlying

trends

our

business,

is important

in comparing current results with prior period results, and is useful to investors and financial analysts in assessing our operating performance. For example, management considers

Adjusted EBITDA to be an important indicator of our operational strength and the performance of our business and a good measure of our historical operating trends. However,

Adjusted EBITDA may have limitations as an analytical tool.

The non-GAAP financial information presented here should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in

accordance with GAAP and should not be considered a measure of our liquidity. There are significant limitations associated with the use of non-GAAP financial measures. Further,

these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare our performance to that

of other companies.

In considering our Adjusted EBITDA, investors should take into account the above reconciliation of this non-GAAP financial measure to the

comparable

GAAP

financial

measure

net

income

(loss)

that

presented

this

“Summary

Consolidated

Financial

Information”

our

registration statement on Form S-1 filed with the SEC.

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