Unlocking Potential: Palantir Technologies Expansion Strategy

Palantir Technologies Foundational Software of Tomorrow. Delivered Today. Luise Bergmann, Jana Weile, Jakob Roessling, Georg Mayer Palantir Technologies HHU CONSULTING

How to prepare Palantir technologies for an expansion in the commercial sector in order to become profitable? Palantir Technologies HHU CONSULTING 2

Todays agenda 01 02 03 04 05 06 07 Recommendation Key issues Situation analysis Strategic alternatives Implementation Financials and risks Wrap up Palantir Technologies HHU CONSULTING 3

Recommendation Palantir Technologies HHU CONSULTING 4

Three steps to success for the road ahead 1. Develop defense sector Reach higher impact level 5 2. Improve your image Change corporate structure 3. Create new revenue streams Expand current customer base Palantir Technologies HHU CONSULTING 5

Key issues Palantir Technologies HHU CONSULTING 6

The key to success is to focus on the three main key issues Image Profitability Diversification Palantir Technologies HHU CONSULTING 7

Situation analysis Palantir Technologies HHU CONSULTING 8

The commercial sector offers the highest potential Competitors Zscaler Inc. Splunk Inc. s Alteryx Inc. software-as-a-service commercial & government sector Cloud computing Cyper security data science and analytics platforms code-free and code- friendly platform via cloud Smiliar business model analyzing high volumes of real-time data government and public sectors. Palantir Technologies HHU CONSULTING

The commercial sector offers the highest potential Market focus Commercial sector Defense Public sector High expertise Profits especially in the US market pleased customers Limited potential Huge potential Increased demand in the pandamic (remote work) Expensive products Huge potential Necessary digitalisation process Including health sector Free-trial of software platform Palantir Technologies HHU CONSULTING

More businesses can be attracted by your USP What is your unique value proposition? Satisfied customers Current market Success in commercial market Major competitive assets platform capabilities, product functionality, speed of adoption Fulfill Customers desires to build their own solutions internally Palantir Technologies HHU CONSULTING 11

More customers need to be attracted What is your unique value proposition? BUT - High costs - Few customers - Not profitable : Satisfied Satisfied customers customers - Current Current market Success Success in in usecases commercil commercil High High expertise expertise in predictive predictive technologies technologies in Great operational Great operational capabilities capabilities - - Fast, quick adapting Fast, quick adapting market usecases in - in Palantir Technologies HHU CONSULTING 12

Strategic alternatives Palantir Technologies HHU CONSULTING 13

To prepare for the expansion into the commercial sector and be profitable you have to repair your image and diversify Image Diversification Palantir Technologies HHU CONSULTING 14

To gain a more positive image it might be advantageous to change your corporate structure Split by product Split by unit Transform Corporate structure Merger and acquisition Remain Go for this alternative Don t go for this alternative Palantir Technologies HHU CONSULTING 15

By splitting your company in units and separating political and private interests you can gain a more positive image Merger and acquisition Evaluation Split by product Split by unit Evaluation Evaluation ~ ~ Costs ~ ~ Feasibility ~ Effectiveness ~ ~ Profitability ~ Poor Medium Good Palantir Technologies HHU CONSULTING 16

Second you have to decide by which units to split and how to expand those Business intelligence Sales Defense Artificial intelligence Cooperation Expansion of market focus Commercial/ Public SPAC investments Venture division Go for this alternative Don t go for this alternative Palantir Technologies HHU CONSULTING 17

To enhance your commercial/public products we suggest you to cooperate and invest in SPACs SPAC investment Evaluation Venture division Evaluation Cooperation Evaluation ~ ~ Costs ~ ~ Risk ~ Effectiveness ~ ~ Profitability ~ Poor Medium Good Palantir Technologies HHU CONSULTING 18

Cooperate in areas where you have lower expertise but which enable high market potentials Business intelligence Evaluation Evaluation Artificial Intelligence Evaluation Sales Evaluation Evaluation ~ Market potential ~ Gain Competencies ~ Effectiveness ~ ~ ~ Profitability ~ Poor Medium Good Palantir Technologies HHU CONSULTING 19

With your image and diversified corporate structure we are sure you will be successful in the long-term Image Diversification Palantir Technologies HHU CONSULTING 20

Implementation Palantir Technologies HHU CONSULTING 21

Split Palantir into different units in order to avoid negative image effects Split Palantir in divisions Defense Commercial & Public Palantir Technologies HHU CONSULTING

Move forward within the different division Commercial & Public Defense Palantir Technologies HHU CONSULTING 23

Strengthen capabilities in the defense sector and be the first to reach next security clearance Global tension increase Western intelligence agencies need strong partner Increased need in cyber intelligence Built on already established capabilities Reach impact level 6 for security clearance Be the first partner for DoD Built the next partnership for the future Palantir Technologies HHU CONSULTING 24

Move forward within the different division Commercial & Public Defense Palantir Technologies HHU CONSULTING 25

Establish a separate image with new cooperation and invest strategically using SPACs Boost sales with growing team and partnerships Hire experienced sales personal Creates awareness and demand by hotels Merge BI & AI together with a partner Benefit from different capabilities Offer a better solution for customers Increase profitability Long term success secured with investments Strategic investments in health care and robotics Possibility to make ROI when doing an IPO Still securing share in the company Palantir Technologies HHU CONSULTING 26

The road ahead 2021 2021 2022 2022 2023 2023 2024 2024 2025 2025 2026 2026 Palantir Split Improve DoD solutions IL 6 Certified Hire additional sales Sales cooperation SPAC Investments Milestone Project phase Follow up Palantir Technologies HHU CONSULTING 27

Financials and Risks Palantir Technologies HHU CONSULTING 28

US Army revenue will increase massively in the next few years and is a stable source of income $800M $739 2025 Palantir Defense reaches Impact Level 6 clearance $700M +40 % $600M $528 $500M $377 $400M $300M +25 % $269 $192 $200M $154 $123 $99 $79 $100M $54 $M 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Palantir Technologies HHU CONSULTING 29

In the next few years, employee costs will rise significantly Employment (Units) Wages ($ million) $250000.0 1400000.0 $205114.50 $205114.50 1195330.0 1195330.0 1200000.0 $200000.0 $156338.0 $156338.0 1000000.0 886715.0 886715.0 +308,615 units $150000.0 + $48,777 800000.0 600000.0 $100000.0 400000.0 $50000.0 200000.0 - $- 2021 2022 2023 2024 2025 2026 2027 2021 2022 2023 2024 2025 2026 2027 Palantir Technologies HHU CONSULTING 30

Based on the new strategy, the Palantirs Technologies profit can be increased Strong Defense & Intelligence Increasing revenues in the Defense + Intelligence segment 1 Sales & Marketing Unit Expansion of the Sales & Marketing unit increases overall sales 2 Product portfolio Investment in innovative companies increases product portfolio Increased revenue 3 New markets The division of the company will serve new markets 4 Palantir Technologies HHU CONSULTING 31

For the monetization of Palantirs Technologies brand, the following risks should be taken into consideration Impact Risks 2 Division of the company into BUs increases risk and organizational effort 1 1 Competitors have better digital expertise and cheaper products 4 2 Employee costs will rise more sharply in the coming years (shortage of skilled workers) 3 3 Image loss in the area of Defense & Intelligence 5 4 Expenditures in sales + marketing & investments exceed financial budget 5 Probability Palantir Technologies HHU CONSULTING 32 Low Medium High

There is no risk for which there are not also corresponding preventions Preventions Risks Description Evaluation Division of the company into BUs increases risk and organizational effort Competitors have better digital expertise and cheaper products Employee costs will rise more sharply in the coming years 1 1 Writing down and defining clear responsibilities defining clear responsibilities and affiliations affiliations Collaboration Collaboration with smaller Artificial Intelligence Software Artificial Intelligence Software Platforms Platforms 2 2 3 3 Avoiding cooperation Avoiding cooperation with states with a negative image Prior risk and cost / benefit analysis risk and cost / benefit analysis of the cooperations under consideration Image loss in the area of Defense & Intelligence 4 4 Expenditures in sales + marketing & investments exceed financial budget Increasing revenues in Defense and Intelligence buffer potential losses losses buffer potential 5 5 Palantir Technologies HHU CONSULTING 33 Low Medium High

Wrap up Palantir Technologies HHU CONSULTING 34

The key to success is to focus on the three main key issues Image Profitability Diversification Palantir Technologies HHU CONSULTING 35

Thank you for your attention! Palantir Technologies HHU CONSULTING 36