Investors Presentation

August 2021

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Disclaimer

This presentation contains general data and information as well as forward looking statements about Axilion Smart Mobility ("Axilion"). Such statements, along with explanations and clarifications presented by Axilion's representatives, include expressions of management's expectations about new and existing programs, opportunities, technology and market conditions. Although Axilion believes its expectations are based on reasonable assumptions, these statements are subject to numerous risks and uncertainties. These statements should not be regarded as a representation that anticipated events will occur or that expected objectives will be achieved. In addition, the realization and/or otherwise of the forward looking information will be affected by factors that cannot be assessed in advance, and which are not within the control of Axilion, including the risk factors that are characteristic of its operations, developments in the general environment, external factors, and the regulation that affects Axilion's operations. This presentation contains partial information from the public reports of Axilion under the Israeli Securities Law 5728-1968 (the "Securities Law"), which reports can be accessed at the Israeli Securities Authority's website, www.magna.isa.gov.il. A review of this presentation is not a substitute for a review of the detailed reports of Axilion under the Securities Law and is not meant to replace or qualify them; rather, the presentation is prepared merely for the convenience of the reader, with the understanding that the detailed reports are being reviewed simultaneously. No representation is made as to the accuracy or completeness of the information contained herein. The information included in this presentation is based on information included in Axilion's public filings. However, some of the information may be presented in a different manner and/or breakdown and/or is differently edited. In any event of inconsistency between Axilion's public filings and the information contained in this presentation, the information included in the public filings shall prevail. In addition, this presentation includes references to public data about the market in which the company operates, and these are presented for convenience and do not constitute a binding source. The information contained in this presentation or which will be provided orally during the presentation thereof, does not constitute or form part of any invitation or offer to sell, or any solicitation of any invitation or offer to purchase or subscribe for, any securities of Axilion or any other entity, nor shall the information or any part of it or the fact of its distribution form the basis of, or be relied on in connection with or relating to any action, contract, commitment or to the securities of Axilion. The presentation does not constitute a recommendation or opinion or substitute for the discretion of any investor.

Our People

Danny Bachar CEO

John D.Porcari President Axilion US

Dr.Orly Avner Head of Research

Dani Daniel Principle Engineer - AI Specialist

Ilan Weizman CTO & Co-Founder

Sigal Barak Head of Marketing

Oriel Raveh VP Product

Elad Nadri VP Sales Development

Didier Lerer GM Business Development

Moshe Fink CFO

Ami Barlev Active Chairman

Our Mission

" Redesign today's transportation systems to create a cleaner, safer, congestion-free world

Our Vision

" We aim to be the go-to platform for continuous optimization processes and tools for businesses and governments to gradually reduce carbon footprint & congestion derived from the challenges created by mobility and traffic.

Problem Space In Figures Mobility

US citizens spent in traffic every year 6 Million

4.6 Tons

of carbon dioxide / Year is emitted by one passenger car on average

Car accidents happens every year resulting in ~ 90 deaths/day

Problem Space-Traffic Engineering

Bird's Eye

Time-consuming & Non-scalable process.
Open-loop process.
No ability to simulate the collateral affect.

Traffic Engineering Perspective

Planning and optimizing are done once in 5-10 years
Traffic counts are collected manually and not in real-time
Simulation tools are used only in 10%-15% of the projects

* Based on interviews, observations, and mutual work with traffic engineers along the history of the company .

What Do We Do?

Process videos from onboard & static cameras, utilizing contextual AI

Create a Mobility Digital Twin of a city/state calibrated by our AI engine

Predict, plan, & optimize mobility to reduce carbon emissions, congestion, and increase safety

Our Solution

The leading Mobility Digital Twin Platform

Service Level
Congestion
Environment Twin

System Modules Safety

Simulate & predict road-network conditions & "what if" scenarios

Capture & visualize your road-network through IoT Edge Cameras

Neural

Plan & implement the best possible outcome & create a continuous optimization protocol leveraging Reinforcement Learning

Market Drivers

" Currently, 55% of the world's population lives in urban areas and this is projected to rise to 68% by 2050 according to the UN

European Strategy for low-emission mobility

Transport represents almost a quarter of Europe's greenhouse gas emissions and is the main cause of air pollution in cities

Emissions of air pollutants from transport that harm our health need to be drastically reduced without delay.

The strategy will benefit European citizens and consumers by delivering improvements in air quality, reductions in noise levels, lower congestion levels and improved safety.

Increasing the efficiency of the transport system

Speeding up the deployment of lowemission alternative energy for transport

Moving towards zero-emission vehicles

Emissions only started to decrease in 2007 and still remain higher than in 1990

Carbon Crisis Solution & Market Trends

"this research shows that in 2013 the early-stage venture funding for climate tech companies was about \$418 million. However, in 2019, total venture funding increased to \$16.1B, a more than 3750% increase. This is on the order of 3X the growth rate of VC investment into AI, during a time period renowned for its uptick in AI investment."

Market Drivers

"The leading cities are already achieving this with efficient transport networks that feature modern infrastructure, easy connections across various modes of transportation, and, above all, a clear strategy of how to meet future needs"

Investing in efficient public transport system can boost economic growth up to US\$800 billion

the costs of inefficient transport are influenced by factors such as journey times, crowding and density of the transport networks, which impact a city's productivity.

i Siemens assessed the economic cost of inefficient transport around the world. Well establish cities High density compact cities Emerging cities i i Today's economic cost of transport as a percentage of GDP per capita

Market Drivers

Transportation demand and emissions continue to rise:

Increase in global transport activity

By 2050

Intelligent transportation and green tech markets are growing:

Intelligent Transportation Systems (ITS) CAGR of 15.3% by 2025

Global Carbon Market growing in 20% rate In 2020

What has been done so far?

Pulse - City & Highway mode - ready to pilot

⁰² ⁰³ Neural - Advanced optimization engine - In development

Digital Twin - Simulation & Optimization in design partnership - Jerusalem Optimization engine - first version

Pilot Status

Pilot	Description	Status	Expected completion date
Jerusalem	Simulation of the rabin corridor during morning rush hours in order to reduce congestion and carbon emission	Conducting field tests to validate and calibrate the simulation model	Q1 2022
Bolzano (Italy)	X Way Pulse module was implemented in collaboration with Microsoft and Vetrya (Local Partner & Integrator)	About to commence commercial negotiations with the local municipality and strategic partners	Q1 2022
Target City (France)	Implementation of the X Way Pulse module in collaboration with Transdev ** This project constitutes a relocation of a previous pilot, in accordance with the decision of the parties	Finalizing SOW with Transdev, scoping the relevant corridor and intersections which will be part of the pilot and the relevant KPIs.	Q2 2022

The company currently manages a number of pilots at various stages and has also received inquiries to carry out additional pilots that are being examined by it.

Research & Development Status

		Completion Date
Traffic engineering software designed for Signal planning with transit signal priority (TSP), and pedestrians priority	Version 8.1 of the software is now available for purchase, approved by the ministry of transportation in Israel valid until the 21.1.2022. on the 11.7.2021 the company filed for approval extension. The Jerusalem municipality has requested additional features which have been developed, and will be included in future version which will be submitted for approval as well.	In Production The software is being used by the Jerusalem light rail, Haifa Metronit (BRT), and by Traffic Engineers.
Monitoring and identification of bottlenecks in X Way Pulse traffic signal network	The software module is under testing, and being piloted, based on feedback and module behavior additional R&D activity may be required	Q4 2021
The Digital Twin module enables the simulation of selected signalized corridors and provides green light optimization X Way Twin recommendation. The module's calibration is achieved by infusing data sources such as traffic counts, and Origin-Destination (OD) Matrix received from the pulse and other data sources	The Digital Twin module is in advanced development stages focusing on calibration and validation.	Q1 2022
Prediction and recommendation system provides an X Way Neural alternative traffic signal plans for entire corridors, based on dynamic measurement of current demand levels, vehicle type, road capacity and driving profile of the road users.	Product characterization and requirements specification	2023

*The expected completion date refers to the development stages mentioned in the table on column 3

Going Forward

Expanding strategic partnerships i
New marketing initiatives i
- New marketing collateral i
- Preparing for conference i
- Rebranding i
Exploring new opportunities i
Exploring new market landscape i
Implementing new cross company processes to support day 2 day operation, support current pilot and setting foundation for scale i

Financials

Six-months P&L (unaudited)

	June 2021	June 2020
Revenues	724,349	879,041
Research and development expenses, net	(8,944,752)	(3,730,899)
Administrative and general expenses	(4,284,771)	(2,040,313)
Marketing expenses	(3,862,307)	(457,863)
Loss from operations	(16,580,146)	(5,350,034)

Financials Q2-2021 Data

Revenue for the period from TransEm software license and maintenance in Israel remained flat YoY
Performed cost re-allocation focusing additional funds to R&D while reducing overhead (such as cutting the Tel Aviv office spend by 50%)
Most of cash reserve is held in short term interest bearing bank deposits
Short term foreign currency
According to our conservative cash flow forecasts, the current cash reserves will allow us to operate normally in the next foreseeable period

AI Terminal

Axilion Smart Mobility Ltd.

6672_rns_2021-08-29_f5cf5ca0-0398-43e4-bbba-cb07b09c7d00.pdf

Investors Presentation

Disclaimer

Our People

Our Mission

Our Vision

Problem Space In Figures Mobility

4.6 Tons

Problem Space-Traffic Engineering

Bird's Eye

Traffic Engineering Perspective

What Do We Do?

Our Solution

System Modules Safety

Neural

Market Drivers

European Strategy for low-emission mobility

Carbon Crisis Solution & Market Trends

Market Drivers

Market Drivers

What has been done so far?

Pilot Status

Research & Development Status

Going Forward

Financials

Six-months P&L (unaudited)

Financials Q2-2021 Data

References

Thank You

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