XTPL S.A.

Management Reports • Sep 25, 2025

Report Content Title:Strategy update.

Legal basis:

Article 17(1) MAR - confidential information.

Content of the Report:

With reference to Current Report 54/2023 of November 22, 2023, theManagement Board of XTPL S.A. ("Issuer", "Company", "XTPL") herebyreports that it has updated the Company's strategy ("Strategy").

The Strategy for 2023-2026 focused on the development and scaling phaseof the XTPL business. The main target was to reach PLN 100 million incommercial sales by 2026. The Strategy provides for an investmentprogram across the Company's key areas - sales, production, and R_D -designed to transform XTPL into an organization able to generate andsupport the anticipated sales volumes, mainly to industrial customers.

To date, the Company has delivered on the main objectives of itsinvestment plan:

expanded or built competencies in product, project, and productionmanagement;

established production departments for all product groups, along withdedicated quality management and customer support departments;

significantly increased production capacity for devices and conductiveinks;

strengthened the sales department and opened a Demo Center in Boston,USA;

expanded its network of local distributors worldwide;

broadened its product portfolio with three types of printing modulesfor industrial use and a gold nanoparticle ink designed for biosensorapplications;

significantly increased its presence at international industry events;

secured a stock of key components and increased its supplier base.

secured production, laboratory, and office facilities to accommodatethe Company's growth;

As a result of these activities, at the beginning of the first quarterof 2025 the Company launched the first industrial implementation of itstechnology and confirmed an order for the initial batch of sixUltra-Precise Dispensing (UPD) modules from its direct partner - aleading Chinese manufacturer of machines for the mass production ofFPDs. The end customer for the XTPL-enabled solution is one of China'slargest display manufacturers, with annual revenues of several tens ofbillions of USD.

At the same time, the Company is continuing R_D on both existing and newproducts to maintain its long-term competitive edge and to expand itsaddressable market to include new applications (high-frequencycommunication, hybrid bonding, micro-bumps for advanced packaging) andnew industries (biosensors, automotive, defense). The Company is in anadvanced stage of development preparing to launch a new business lineunder the working name DPS+, intended for production in the HMLV(High-Mix Low-Volume) model. R_D is also underway on a new generation ofprinting modules, including designs based on a multi-nozzle system andconductive inks.

Furthermore, the Company manages and protects its intellectual propertyon an ongoing basis. During the implementation phase of the investmentprogram alone, the Company was granted 20 patents and filed 4 new patentapplications.

Activities are also continued to expand the Company's productioncapabilities through cooperation with external partners. This project iscurrently at an advanced stage of acquiring a key partner to scale updevice production.

The Company is making steady progress on its most advanced industrialprojects and has a growing pipeline of early-stage industrial projectsacross key industries (semiconductors, advanced displays, PCBs) and keygeographic markets (Asia, North America, Europe). The growing interestin UPD technology among industrial partners reflects XTPL's gradualrecognition as a supplier of industrial solutions, confirmed by thefirst implementation in the Chinese market and the increasing awarenessamong potential partners. Currently, there are more than 40 DPS devicesand 9 industrial modules in the market.

At the same time, the pace of the first industrial implementation isslower than envisaged in the 2023-2026 Strategy. The Company's customersreport a shift in timing, compared with the assumptions originallycommunicated to the Company, in the expected timeline for market demandlinked to successive product generations that require high-resolutionprinting. This means that the conversion process for the remainingactive industrial projects into sales may take longer than originallyanticipated. For this reason, the Company's Management Board has decidedto update the assumptions and adopt the Strategy for 2026-2028. The newStrategy extends the timeline for XTPL to achieve its target of PLN 100million in commercial sales to 2028. The potential volume of UPD deviceswithin the projects under evaluation remains unchanged, but moreconservative assumptions have been adopted regarding their timelines,taking into account the pace of the first-ever industrial implementationof XTPL technology and the timing of market demand for end-customersolutions, which is beyond the Company's control.

The 2026-2028 Strategy identifies a capital gap of PLN 15-20 million inthe first half of 2026. For this reason, four parallel processes arebeing pursued aimed at securing financing for 2026, when the Companyexpects the commercialization of the new DPS+ business line and furtherindustrial implementations, which will enable XTPL to continue financingits growth independently. These processes include:

debt financing;

co-financing R_D projects through grant funding;

acquiring a strategic investor who would take a minority stake in theCompany;

a capital increase and a share issue directed to the market.

The Issuer's Management Board has classified the update of the Company'sStrategy as inside information, as its implementation may have amaterial impact on the Issuer's future revenue position, the increasedadoption of the Company's technological solutions, as well as on how theIssuer is perceived by investors.

For this reason, in the opinion of the Management Board, the informationabout the Strategy update meets the criteria set out in Article 7(1) ofthe MAR.