Invent the Future with Palantir: Strategic Expansion and Problem Solving

RESPECT THE PAST & INVENT THE FUTURE WITH PALANTIR Expanding from the Government to the Commercial Sector Presented to Mr. Alex Karp and Management Team Presented by Nanyang Consulting Company (Aastha, Bea, Eun-Bin, Sylvia) 1 Q2-2021

TABLE OF CONTENTS 1. Executive Summary 1. Problem Overview Problem Statement Internal & External Analysis 2. Alternative Analysis 2. Recommendation Overview Execution Plan Financial Indicator Risk & Mitigation Plan Timeline 2. Conclusion 2. Appendix 2

EXECUTIVE SUMMARY 3

PROBLEM STATEMENT With good data and the right technology, people and institutions today can still solve hard problems and change the world for the better. Objectives: Cultivate partnerships with commercial enterprises Become default operating system for US government and entire industries How to handle sales and marketing? How to invest to grow the business? Who is going to be the core customer group? Core values: Support security interests of US and allies Balance public safety and civil liberties for technical solutions 4

PALANTIRS HOLISTIC STRATEGIC APPROACH Expand in the commercial area by defining markets, industries, collaborations Give more people the opportunity to make the world better Keep innovating through investments Improve image through partnerships 5

PROBLEM OVERVIEW 6

COST STRUCTURE Operations Cost of Revenue Sales & Marketing Research & Development General & Administration Overview Expenses Q1 2021 Sales & marketing expenses Research & development expenses General & administrative expenses Q1 2021: ~22% of revenue R&D generates less expenses than sales & marketing, general & administration 7

COMPANY SOLUTIONS & APPROACH Solution Description & Target Group Generic usage, enable data usage without technical knowledge Target: commercial clients Foundry Data-driven techniques (incl. predictive policing, facial recognition, voice recognition) Target: police, defense and intelligence agencies Gotham Apollo Powering SaaS platforms Acquire Expand Scale Short-term pilot for existing and new customers Operating at a loss < $100,000 revenue Investment to deliver value Operating at a loss > $100,000 & negative contribution Autonomous use of platform Operating at a profit > $100,000 & positive contribution Solutions are differentiated by target group, sales strategy however is not 8

COMPETITOR OVERVIEW Strong presence: analytics platform, interactive data visualization, predictive analytics, geo intelligence Set-up: customized Palantir Worse presence: interactive data visualization Set-up: standardized IBM Worse presence: interactive data visualization, predictive analytics, geo intelligence Set-up: standardized Oracle, Microsoft & Google Worse presence: analytics platform, interactive data visualization, predictive analytics Set-up: customized MicroStrategy Competitive advantage comes from unique features and customizable set-up 9

ALTERNATIVE ANALYSIS 10

OVERVIEW OF ALTERNATIVES (1/2) Strategic Vision Product / Service Offering Intermediaries / Channels Business Capabilities Investment Markets Customers No. Category Alternatives 1 Investment Investments in innovative companies via SPAC through PIPE 2 Increase investment in traditional forms like stocks, bonds etc. 3 Markets Speed up market expansion to other countries whose values aligned with liberal democracies (e.g., UK, France, Japan) 4 Tap into emerging market solving human rights/ environmental issues (e.g., India, South Africa) 5 Customers Customer diversification: Maintain relationship with key government clients while develop more strategic clients in the commercial sectors 6 Partner with United Nations for achieving Sustainable Development Goals 7 Penetration into SMEs in the mature sectors (e.g., Energy, Defense, Banks, Health etc.) Alternatives define the scope to fulfill Palantir s strategic vision 11

OVERVIEW OF ALTERNATIVES (2/2) Strategic Vision Product / Service Offering Intermediaries / Channels Business Capabilities Investment Markets Customers No. Category Alternatives 8 Product/ Service Offerings Provide standard and modular products with lower price 9 Capitalize privacy, security, and data protection technologies and capabilities 10 Integrated data analytics and prediction platforms for end-to-end global supply chain management (shipping, port congestions, factories capacities, lockdowns) 11 Integrated healthcare data analytics platform (connecting researchers, healthcare providers, payers, policy makers, patients for social healthcare improvement) 12 Intermediaries / Channels Strategic sales partnership with innovative companies in large market 13 Business Capabilities Expand sales and marketing team divided by targeted sectors Alternatives show how this scope can be achieved 12

EVALUATION ON ALTERNATIVES (1/2) Favorability: High Medium Low Market Attractiv eness Value Fitness Internal Capability Revenue Impact Category No. Alternatives Feasibility Cost Time Priority Investment 1 Investments in innovative companies via SPAC through PIPE 2 Traditional forms of investment like stocks, bonds etc. Markets 3 Speed up market expansion to countries whose values aligned with liberal democracies 4 Tap into emerging market solving human rights/ environmental issues Customers 5 Develop more strategic clients in the commercial sectors 6 Partner with United Nations for achieving Sustainable Development Goals 7 Penetration into SMEs in the mature sectors Focus on strategic investments and partnerships, developed markets 13

EVALUATION ON ALTERNATIVES (2/2) Favorability: High Medium Low Market Attractiv eness Value Fitness Internal Capability Revenue Impact Category No. Alternatives Feasibility Cost Time Priority Product/ Service Offerings 8 Provide standard and modular products with lower price 9 Capitalize privacy, security, and data protection technologies and capabilities 10 Integrated data analytics and prediction platforms for end-to-end global supply chain management 11 Integrated healthcare data analytics platform connecting different stakeholders for social healthcare improvement Intermedi aries / Channels 12 Strategic sales partnership with innovative companies in large market Business Capabiliti es 13 Expand sales and marketing team divided by targeted sectors Focus on leveraging key USP of data integration supported by dedicated sales team 14

RECOMMENDATION 15

OVERVIEW OF RECOMMENDATIONS Investment Government Customers Commercial Customers Speed up market expansion into UK, Japan and France Focus on Healthcare and Supply Chain Management related sectors Partner with United Nations for achieving Sustainable Development Goals Investments in innovative companies via SPAC through PIPE Provide end-to-end integrated data analytics and prediction platform Build up company-own sales and marketing team Three revenue streams for Palantir to improve financial and operations performance 16

INVESTMENT IN INNOVATIVE COMPANIES Building up business through strategic investments in SPAC Lots of SPACs focus on innovative tech ventures and have huge growth potential Opportunity to get shares at a discount through Private Investment in Public Equity (PIPE) Expected Results Financial support for business operations along with future growth opportunities Benefits High returns with low investment Opportunity to partner with innovative companies brining in new technologies Ideas for future product expansion Investment in innovative companies through SPAC brings both income and strategic partners 17

SUPPORT SUSTAINABLE DEVELOPMENT GOALS Make a difference in the world using our capabilities Expected Results Collaborate with the United Nations to help achieve Sustainable Development Goals Rope in big global clients while generating positive publicity Benefits Generate good publicity for the company Focus on all stakeholders and not just shareholders Deploying technical solution for global health and safety Convince general public of importance of data analytics and possibility to work responsibly Strategic partnerships can change the public perception of Palantir 18

EXPAND COMMERCIAL CUSTOMERS WITH NEW PRODUCTS Speed up market expansion into UK, Japan and France Democracy markets with big corporates, high purchase power, and existing operations Focus on Healthcare and Supply Chain Management related sectors Healthcare customers: Research institutions, Healthcare providers, Pharmaceutical companies Supply chain customers: Logistics, Energy, Transportation, Shipping Expected Results Tackle industry pain points post- COVID using data analytics technology Acquire profits based on new product offerings and customer- facing tactics Provide end-to-end integrated data analytics and prediction platform Healthcare platform: Integrate research data, e-healthcare data, claim data, patients behavior data covering patients journey, social determinants data Generate insights on patients disease management, social health status improvement, and pharmaceutical innovations etc. Supply chain management platform: End-to-end supply chain tracking and forecast platform covering shipping, port congestion, factories data Build up company-own sales and marketing team Accumulate account management expertise; easy to replicate to other sectors Commercial customers with new data analytics requirements Post-COVID that can be tap into 19

OVERVIEW OF IMPLEMENTATION PLAN Investment Government Customers Commercial Customers Collaborate with public data providers, different stakeholders along the industry value chain Identify data analytics needs and develop products Platform commercialization Business model replication to other countries (e.g., Germany) Collaborate with United Nations Build and integrate Provide a secure data sharing platform Use analytics platform and predictive analytics to provide insights and visualizations Find SPACs which focus on innovative tech ventures with huge growth potential Obtain shares at a discount through PIPE Key Activities New customers No. & revenue contribution from healthcare and supply chain mgmt. sectors Customer satisfaction based on new sales & marketing team Client satisfaction Revenue contribution Improvement in public perception Key Return on Investment Performance Indicators Partnership building, new product development, and new client expansion 20

TIMELINE & KEY MILESTONES Recommendation Major Activities 2022 2023 2024 2025 2026 2027 2028 2029 2030 Research Investments in innovative companies Invest Review Partner with United Nations for achieving Sustainable Development Goals Client acquisition System development and integration Build healthcare platform Speed up market expansion into UK, Japan and France Build supply chain management platform Build up company-own sales and marketing team Keep tracking financial and operational results on checkpoints in the following eight years 21

FINANCIAL ANALYSIS Key Financials (2021 2030 FCST) 9,000 Key Financial Activity Acquisition of New Customer - $15 million per new customer 8,408 8,000 7,731 7,020 7,000 6,418 6,000 5,766 2022 & 2025 - Investment in $500 million in SPAC 4,837 5,000 4,000 3,797 3,542 2023 - 3,213 2,867 3,000 Collaboration with UN, leading an additional $300 million in revenue 2,531 2,508 2,192 2,000 1,529 1,410 1,356 1,092 919 1,000 Breakout Even: 2023 - 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 (138) (163) (1,000) Total Revenue Gain/Loss from Operartion Palantir will grow at 17% CAGR and achieve $8.5 billion in revenue 22

FINANCIAL INDICATORS Total Revenue Breakdown (2020) Total Revenue Breakdown (2030) Revenue from Government Revenue from Commercial Revenue from Government Revenue from Commercial Key Financials (2020 ACT): Total Revenue: $1.0 billion Total Net Income: ($1.2 billion) Number of Commercial Customers: 61 Average Revenue per Customer: $7.9 million Key Financials (2030 FCST): Total Revenue: $9.0 billion Total Net Income: $3.5 billion Number of Commercial Customers: 335 Average Revenue per Customer: $19 million The contribution of commercial customers will grow from 44% in 2020 to 71% in 2030 23

RISK & MITIGATION PLAN No. Risk Mitigation Properly vet companies before making investment (incl. cultural fit, strategic objectives, financials) Evaluate investment on a continuous basis Investments in innovative companies might fail 1 Focus on after-sales services and visualizing benefits for customers Integrate hard-to-copy technical solutions that require expertise (e.g., predictive analytics) Companies might drop services before entering scale profit stage 2 Highlight importance of visualization and predictive analytics on communicating their goals; thereby supporting implementation Leverage security status to show trustworthiness United Nations might be averse to partnering due to controversies 3 Create win-win situation by offering overall industry insight reports to participating clients Communicate importance of data sharing for whole industry Commercial enterprises might not want to integrate data on platform 4 Mitigate multiple risks by focusing on individual stakeholder s needs 24

CONCLUSION 25

PALANTIRS HOLISTIC STRATEGIC APPROACH Expand in the commercial area by defining markets, industries, collaborations Give more people the opportunity to make the world better Keep innovating through investments Improve image through partnerships Palantir should expand from the Government to the Commercial Sector 26

APPENDIX 27

FINANCIAL INDICATORS Major Assumptions: Revenue from Government: 10% annual growth rate Average Revenue Per Customer: $8 million ~ $19 million at 25% CAGR Sales & Marketing Expense per New Customer: $10 million Research & Development Expense per New Customer: $5 million Collaboration with UN in 2023 Commercial Revenue Average Revenue from Customer (in $ millions) 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 8 10 13 15 16 16 17 17 18 19 Number of Customer 110 155 195 230 260 285 305 320 330 335 28