Axilion Smart Mobility Ltd. — Investor Presentation 2022

Apr 13, 2022

Investors Presentation

April 2022

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.

Progress & Vision

● Over the recent six months

• Focused on the optimal market segment, located the best go-to-market partner

• Migrated from technology development to Product implementation

• Located, in concert with our partners, our first product prospect* (California Pilot)

● Our Vision

We aim to be the go-to platform for continuous multi-modal traffic optimization aimed at reducing congestion and carbon footprint

* For this matter, please see also extensive details in the company's immediate report dated 29.3.2022 https://maya.tase.co.il/reports/details/1439927/2/0.

X-way

X Way Offering - I

Congestion Prediction

• 30 min traffic prediction
• Preventive suggestions to avoid building congestion

Incident Response

• Prediction of disruption impact
• Suggested alternatives for recovery

X Way Offering - II

Traffic Optimization

Overall congestion reduction Preference to Public Transportation Preference to carbon emission reduction

Vehicle Carbon emission modeling

Certified carbon emission calculation Essential carbon - offset tool

Market Potential - X Way product

➢ The global Traffic Management market size to grow from USD 35.3 Billion in 2021 to USD 61.9 Billion by 2026¹

By Region: North America - 30%, Europe - 20%, APAC - 35%, ROW - 15%

• Traffic controller market is projected to grow from USD 4.19 billion in 2021 to USD 10.06 billion in 2028²
  • ➢ North America region accounted for 38% of worldwide 2020 market
• US Bipartisan infrastructure bill 5 years plan Relevance for Axilion³
  • National Infrastructure Project Assistance grant program \$5B
    • ➢ Multi-modal, multi jurisdictional projects of national or regional significance
  • University Transportation Centers \$95M
    • ➢ Advances the state-of-the-art in transportation research and technology

Market Potential - Carbon Emission

• Passenger cars and vans are respectively responsible for around 12% and 2.5% of total emissions of carbon dioxide⁴
• EU Green Deal 1.8 trillion euro - 3 years plan
  • Cleaner, greener, easier urban mobility⁵
• US Carbon sensing is essential for all state of the art technology projects

5

The US Market

• Largest single market USD 3.92 Billion @ 2021
• Standard driven systems - One solution - easy replication - Across different states & vendors
• State of art traffic sensing systems Faster deployment, improved cost structure
• Strong GTM Partners - Deployed across hundreds of corridors - Multi-year service contracts in place
• Biden's Bipartisan bill 3X DOT spending over next 5 years

3 Successful Pilots

Bolzano France Jerusalem

Bolzano

• Congestion mapping via in-vehicle cameras
• Main focus Public transportation
• SAAS solution hosted by Azure
• Insight example high passenger load at certain time period increased station dwell time

France

• Large international Public Transport as lead partner
• Improved customer interaction
• Cloud supplier agnostic solution
• Insight example Zebra crossing congestion impacts public transport efficiency

Jerusalem

Full X Way feature set

• Multi lane, key corridor @ Israel's capital
• Traffic insight
• Calibrated corridor simulation
• Optimized traffic plan

Jerusalem

Optimization via Simulation

Before After

• Noon rush hour 15:00 16:00, 24 Jan, 2022, Westbound congestion
• Arrivals on green Before = 6,187, After = 10,566, 70% improvement

US Pilot

Scope

Optimize congested traffic across lead corridor

Players

• 1st tier US Traffic solution provider (GTM partner)
• 1st tier Tec Company, with multiple sites across corridor
• Mid sized California city

Corridor

• Multiple office spaces
• 600 shuttle busses daily
• Light rail (LTR) & bike lanes

Estimated schedule

Formal commitment & pilot start - by mid 2022

X Way - Financial Business Model

• US GTM partners actively selling SAAS solutions
• initial 2023 sales likely via GTM resale agreements
• US pilot will help build and solidify our financial model
  • Quantify pilot duration & cost Customer Acquisition Cost
  • Cost of on going service
  • Value for GTM partner
• Validated financial model by 4Q22

The Management

Coby Sella CEO

Yonatan Ben David VP R&D

Ilan Weizman Founder & VP BizDev

Moshe Fink CFO

Vladimir Antonov Customer Success Director

Ami Barlev Active Chairman

John D.Porcari President Axilion US

Advisory Board

• Reporting to CEO
• Goals Enhanced US presence
  • Long term technology guidance

Dr. Jag Mallela

Senior Vice President and

Managing Director at WSP USA

• Technical authority on Transportation standardization (federal level)
• Our link to US academia

Yaron Magber

Senior Director Of Engineering

at Akamai Technologies

• Mass scale AI SAAS deployment
• Highest levels of Cyber related product requirements

2021 Financials Summary - Balance Sheet & Income Statement

	31/12/2021 (in thousand NIS)	31/12/2020 (in thousand NIS)
Current Assets	75,015	40,635
Other Assets	3,224	1,928
Total Assets	78,239	42,563
Current Liabilities	3,761	4,160
Other Liabilities	3,323	1,646
Total Liabilities	7,084	5,806
Equity	71,155	36,757
Total Liabilities and Equity	78,239	42,563

	For the year ended December 31, 2021 (in thousand NIS)	For the year ended December 31, 2020 (in thousand NIS)
Net Sales	2,138	1,531
Research and development expenses	(17,937)	(21,867)
General and administrative expenses	(8,159)	(18,120)
Selling and marketing expenses	(4,962)	(1,692)
IPO listing costs	-	(240,843)
Operating loss	(28,920)	(280,991)
Other expenses, net	(1,255)	(510)
Income before provision for income taxes	(30,175)	(281,501)
Provision for income taxes	(62)	(42)
Net income	(30,237)	(281,543)

Cash and Deposits Position

Cash and short term deposits as of end of March 2022 = USD 20.9M Cash on hand should suffice beyond the end of 2023

Additional funding is expected during 2nd half of 2023

References

1.https://www.globenewswire.com/news-release/2021/08/19/2283322/0/en/Traffic-Management-Market-by-Solution-Hardware-Service-System-And-Region-Global-Forecast-to-2026.html

2.https://www.globenewswire.com/news-release/2022/01/25/2372192/0/en/Global-Traffic-Signal-Controller-Market-Sizeworth-USD-10-06-Billion-in-2028-at-a-CAGR-of-13-3.html

3.https://www.ncsl.org/documents/statefed/IIJA-Section-by-Section.pdf

4.https://ec.europa.eu/clima/eu-action/transport-emissions/road-transport-reducing-co2-emissions-vehicles/co2 emission-performance-standards-cars-and-vans_en

5.https://www.bloombergquint.com/technology/eu-approves-biggest-green-stimulus-in-history-with-572-billion-plan