Elliptic Laboratories ASA — Investor Presentation 2021

Sep 1, 2021

Elliptic Labs Presentation

01.09.2021DnB Nordic TMT Conference

AI software empowering the next billion devices

1

DISCLAIMER – IMPORTANT INFORMATION

The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated ("relevant persons"). Any person who is not a relevant person should not act or rely on this presentation or any of its contents.

This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Elliptic Laboratories AS (The Company). The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions.

This presentation includes and is based, inter alia, on forward-looking information and contains statements regarding the future in connection with The Company's growth initiatives, profit figures, outlook, strategies and objectives. All forward-looking information and statements in this presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for The Company. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions.

Important factors may lead to actual profits, results and developments deviating substantially from what has been expressed or implied in such statements. Although The Company believes that its expectations and the presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the presentation.

The Company is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the presentation, and neither The Company nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use. This presentation was prepared in connection with the Q3 results released on November 16, 2020. Information contained herein will not be updated.

Agenda

Elliptic Labs develops Virtual Smart Sensors that use AI, ultrasound and sensor-fusion to sense you and your surroundings

Sensors touch every aspect of life and drive the digital transformation Our vision is to build the leading AI Virtual Smart Sensor Platform for all sensors, making every device smarter, more environmentally and human-friendly

We are the Virtual Sensor leader using ultrasound & sensor-fusion

Who Global AI software company with presence in Norway, Asia and USA AI Virtual Smart Sensor Platform delivering proximity, presence, 3D gestures and heartbeat detection for consumer and IoT markets What Solid and well-invested technology proven at scale with multiple customers and cost-efficient machine-learning software platform How Software-only business model with opportunity for >50% EBITDA margin, backed by a strong patent portfolio – 102 patents granted/pending Business model Deployed in 100M+ devices and growing software is deployed in over 150M devices and growing…

Revenue Target NOK 500m within the next three years

Our

We enable critical user experiences for the smartphone, laptop, IoT & automotive markets

Proximity Presence Gesture Positioning Connection Breathing Heartbeat

Expanding with Global Customers into New Verticals: Smart Security Device by Bosch

• Contract with Bosch's subsidiary "grow platform GmbH," headquartered in Germany
• Bosch, with distribution in over 150 countries, plans for "spexor" to be distributed globally
• Elliptic replaces 3 very high cost, industrial-rated PIR hardware sensors
• Elliptic Labs' value:
  • Enables scaling
  • Reduces cost
  • Delivers new innovative features

Strengthened market opportunities

Tight supply chain impacts hardware sensor availability and pricing, improving our competitive advantage

MARKETS	SMARTPHONE	PC/LAPTOP/ TABLET	SMART TV	IOT	AUTOMOTIVE
Total market size units	1.6B	460M	400M	1B++	100M++
Competing Hardware sensors cost per unit	Infrared Sensor \$0.10-\$0.25	Time of flight/ Radar Sensor \$2.5-\$4	Time of flight Sensor \$2.50	Time of flight/Infrared \$0.10-\$10	Radar Sensor \$10-\$20
Elliptic Labs value proposition	Clean design, lower cost & more features	Cybersecurity, no supply chain & more features	Power savings & gesture	Power savings, gesture & Wellness	Save lives, heartbeat detection
Elliptic Labs Pricing model	Virtual Smart Sensors flexible pricing model:	1 2 Volume based license fee per unit/device, per virtual sensor Subscription fee or Enterprise/annual license fee 3
Market opportunity	\$200-\$400M	\$1100-\$1800M	\$1000M	\$100M++	\$1000-\$2000M
We replace hardware sensors with Virtual Smart Sensors, which is 100%

software and thus allows for flexible pricing models

9

PC market is the next growth vertical

\$40B Intel \$6.4B AMD ~\$300M Qualcomm ~\$100M Other 2020 PC/Laptop CPU Market Share (Revenue) Partners 20 Mu Huawei 200,5 Mu Other 2020 PC/Laptop/Tablet Volumes (Millions of units – Mu) Customers

*AMD does not separate revenues from its CPU & Graphics businesses ** Qualcomm does not separate revenues from its IoT business

Source: AMD 2020 Financial Report, Qualcomm 2020 QCT Revenue Streams Report and Intel 2020 Financial Report

Source: Canalys PC Market Pulse 2020 and Gartner 2020 Annual WW PC Shipment Report

87 Mu Lenovo

50.5 Mu Dell

16.2 Mu

Acer 16,4 Mu

Asus

67,8 Mu HP

In July 2021 First Laptop Enterprise License Agreement

Signed with a Top 3 Laptop OEM

Solid partnership enables access to multiple verticals

Years of dedication and networking enables Elliptic Labs to access new markets, new verticals and leverage opportunities

Agenda

Introduction

Financials

Summary

Elliptic Labs KPIs per Q2 2021

2021 Outlook and onwards

• Growth in 3 verticals:

• Expecting stronger topline 2021 (2020: NOK 45m)
• Expecting positive EBITDA 2021 (2020: NOK -5m)

Clear Path Towards Significant Revenue Uplift

• Increase in smartphone revenue due to new customers and from marketing new technology features to current customer
• Larger fixed-volume contracts on units/devices increases revenue certainty
• Laptops are the largest revenue driver in the near future

Agenda

Elliptic Labs is well positioned for growth

• ü Proven business model with software deployed at large scale
• ü New agreements in place in multiple verticals and geographical markets
• ü Continued launching with new and current customers in the smartphone market
• ü Strengthened partner collaborations with leading PC and IoT semiconductors
• ü Solid AI software platform and established partner ecosystem lower expansion barriers
• ü Target of NOK 500M revenue within three years