Palantir Brand Defense and Strategy Analysis

Palantir Reinforcing and defending the brand Presented to: Alex Karp, CEO; board of directors Lund Consulting Group: Dominykas Vid i nas, Sebastian van Dijkman, Lum Rexha, Jakob Palerius

Defenseis a definite part of the game, and a great part of defense is learning to play it without fouling. John Wooden

Agenda Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Situation: Palantir operates in the software publishing field that has been both boosted and come under increased scrutiny due to Covid-19 Predictive algorithms Machine learning Artificial intelligence Big data Threat Information security detection and deterrent Privacy Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Situation: Palantir seeks to be a synonym to defense, but operates in a morally grey area USA Political activism Immigration and Customs Enforcement College student negativity External threats Challenge Grace Hopper Celebration sponsorship rejection Department of Defense Competitors seen as more ethical Police Departments Internal threats Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Situation: Palantir is heavily concentrated both in its income sources and in their tenure as part of the clientele Palantir s biggest client share of total revenue Comparison of Palantir s new vs old client share 10% 28% 33% 90% 39% Top 3 clients 17 other biggest clients Other clients Old clients New clients

Situation: Palantirs positioning in comparison with its competitors Custom-built Tyler Zscaler Palantir Business intelligence Analytics IBM Microsoft Amazon Google Standardized Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Situation: Despite Palantirs great growth, it is still making a loss and now facing greater pressure to perform Comparison between Palantir s revenues and net income 600,000 400,000 200,000 - 09/30/2019 03/31/2020 09/30/2020 03/31/2021 (200,000) (400,000) (600,000) (800,000) (1,000,000) Revenue ($ thousand) Net Income ($ thousand) Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Situation: Our recommendation is based on three building blocks Work for a long- term vision to become the main supplier to NATO (- members) Expand Address PR-issues and lobby for regulation competences in the Analytic business segment Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Our recommendation Lobby for regulation, increase product offerings within AI and expand government customers through US collaborations. Main challenge Positioning the company in an increasingly political climate, diversify its sources of income and set it up for consistent future growth.

Analysis: The balance between civil liberties and technical solutions is missing Social liberties Technical solutions

Analysis: This is not a company issue, it is a national, societal issue Regulation by government Needed position Privacy as a civil and human right Privacy as a commodity, private property The dream Today Self-regulation Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Analysis: Enabling customers to ask questions to their data is a key strength The Palantir product is about enabling the customer to ask questions to their data and get answers in a language they understand Key success factors: Customizable platform around available knowledge Enabling more questions to be asked with new tools - - - Voice analysis Image analysis IT/Log analysis Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Analysis: Defending American values and ideals is about being interconnected with like minded partners The United States of America is part of a wide network of like minded partners that necessitates Interconnection, here is Palantir s opportunity Peace and stability around the world NATO Interconnection

Alternatives (1/3): Develop standardized platform to target smaller companies What it means: Developing a standardized platform that can be sold to smaller companies for at a smaller price point. Reaches a new and large customer segment Greater product offering Advantages: Highly competitive market Not in line with competitive advantage compared to the biggest players Drawbacks: Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Alternatives (2/3): Suspend government collaboration and focus fully on corporate customers Cancelling all current governmental collaboration and only focus on corporate customers What it means: Advantages: Limits possible societal pushback Drawbacks: Loss of biggest revenue stream Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Alternatives (3/3): Our recommendation What it means: Lobby for regulation, increase product offerings within AI and expand government customers through US collaborations Faces PR problem head on and invites discussion Increased potential clients with a greater product offering Reiterate dedication to keeping protecting American values Advantages: Drawbacks: There are some risks associated with our strategy but they are addressed in the contingency section. Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Alternatives: A quick comparison of the alternatives moving forward Suspend government collaboration Standardized platform Our recommendation Potential growth rate Public image Risk Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Recommendation Work for a long- term vision to become the main supplier to NATO (- members) Expand Address PR-issues and lobby for regulation competences in the Analytic business segment Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Implementation (1/3): Addressing the ethical grey area Address the ethical grey area by taking public stance and lobby for regulation Purpose Action People Cost Stay relevant to potential customers Avoid being blacklisted by ESG- investors Attract the right employees Lobby for regulation Make a public statement and stand up for your values Withdraw contract with LAPD Top management Independent group of ethical experts PR/Lobbying/Law- team Lobbying costs Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

The threats to the US that our technology can mitigate are external, not internal. Therefore we are reiterating our dedication to keeping America safe from outside influence and protecting our values. Because of this we are suspending our collaboration with the LAPD and focusing on aiding the US in protecting and strengthening democracy in the world.

Implementation (2/3): Expanding the business with 3 new segments Expand competences in the Analytic business segment Purpose Action People Cost Start 3 new business segments: [1] IT/LOG- Analytics, [2] image and [3] voice recognition [1] in-house, [2]+[3] through strategic acquisition and in-house Expand sales team to market new segments Strengthen position and competitive edge Attract new customers Diversify competences Top management Finance department HR department Data scientists Platform developers Sales team Investment costs for 3 business segments Marketing costs Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Implementation (3/3): Securing long term partnership with major player Work for a long-term vision to become the main supplier to NATO(-members) Purpose Action People Cost Work towards IL-6 Open office in Brussels Lobbying Utilize relationship with US-military Extended free trial period Top management Data-scientists R&D PR/Lobbyists/Law- team Prove your superior competence Huge growth potential Lobbying costs R&D costs Free trial Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Implementation: Our recommendation repositions Palantir as follows Custom-built Palantir Tyler Zscaler Palantir Business intelligence Analytics IBM Microsoft Amazon Google Standardized Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Implementation: GANTT Timeline 2021 2022 2023 2024 2025 2026 Comments Lobbying campaign Lobby for regulation Make public statement Withdrawal Contract ends Withdraw contract with LAPD Three new business segments In-house IT/LOG-Analytics In-house Acquisition* (*+/- 1 year) Image recognition In-house Acquisition* (*+/- 2 year) Voice recognition NATO Establish office in Brussels Focus on gaining US security clearance IL-6 Attracting NATO members as customers Trial period Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Finance: 5-year software industry performance data forecast to point out the growth potential Software Industry Revenue 2022-2026 Software Industry Enterprises 2022-2026 460 30000 450 25000 440 20000 430 420 15000 410 10000 400 5000 390 380 0 2022 2023 2024 2025 2026 2022 2023 2024 2025 2026 Revenue ($ billion) Enterprises (Units) Compound annual growth rate of 7.59% Compound annual growth rate of 2.13% Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Finance: Revenue development according GANTT implementation steps Revenue Development 2021-2026 ($ million) 2500 2000 Compound annual growth rate: 7,9 % 1500 1000 6% 9% 6% 6% 9% 500 0 2021 2022 2023 2024 2025 2026 Revenue Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Finance: Cost breakdown for each implementation step presented Cost Allocation 2022-2026 ($ million) 1400 Additional Costs Calculation ($ million) 1200 Cost allocation 2022 2023 2024 2025 2026 10 10 10 1000 Lobbying for regulationsLobbying costs Expand competences 10 10 In-house - IT/LOG-Analytics Acquisition + In-house - Voice Analytics - Image Analytics Opening Operation in Brussels Business Operation Sales & Marketing 800 150 130 120 100 100 600 70 90 50 70 40 50 40 50 40 50 400 200 NATO 30 15 30 17 35 19 40 23 45 30 50 0 General Category 1 Lobbying for regulations Expand NATO Others Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Contingencies: Risks & mitigation strategies for each step of the recommendation Risk Mitigation Continue lobbying efforts and create formal regulation for yourselves in the meantime 1. Unable to successfully lobby for regulation Address the ethical grey area by taking public stance and lobby for regulation 2. Unable to acquire companies focusing on voice and image analytics Focus on what is demanded by customers first and develop that in-house. Severity 1 2 Expand competences in the Analytic business segment 3 3. Unable to sell your service to NATO as a whole Target specific member states and the domino effect will kick in. Work for a long-term vision to become the main supplier to NATO(- members) Likelihood Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Defense is a definite part of the game, and a great part of defense is learning to play it without fouling. John Wooden

Conclusion: Palantir is facing a number of challenges that we address Diversifying and deciding on sources of income (business vs government) Positioning the company in a political climate Dealing with pressure from investors Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Conclusion: We recommend Palantir to specialize more towards custom-build analytical software Custom-built Palantir Tyler Zscaler Palantir Business intelligence Analytics IBM Microsoft Amazon Google Standardized Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Conclusion: Our recommendation is based on three building blocks Work for a long- term vision to become the main supplier to NATO (- members) Expand Address PR-issues and lobby for regulation competences in the Analytic business segment Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion

Appendix I: Data source and calculation formula for revenue and enterprise growth rates Software Industry Performance Data Outlook Revenue ($ million) 2018 318112 2019 341277 2020 384187 2021 396706 2022 410760 2023 428433 2024 437504 2025 446900 2026 456394 2027 466405 Year Establishments (Units) Compound annual growth rate formula: 14188,0 16971,0 20099,0 21895,0 23986,0 26453,0 29027,0 31332,0 33867,0 36282,0 ? ? ?????? ?????? ???? = ? Situation Analysis Alternatives Recommendation Implementation Finance Contingencies Conclusion