Slide 1: Q4 and FY 2021 Earnings Call
® neonode® Q4 and FY 2021 Earnings Call March 10, 2022
Slide 2: Today's Presenters
Today’s Presenters Urban Forssell Fredrik Nihlén_ Alana Gordon David Brunton ceo cro Director Marketing Head of Investor Relations 2or203.09 1 2 neneonode.com + Nasdaq (NEON @neonode’
Slide 3: Legal Disclaimer
Legal Disclaimer This presentation contains, and related oral and written statements of Neonode Inc. (the “Company”) and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements include information
Slide 4: Highlights in Today's Presentation
* COVID-19 continues to bring challenges to our sales and business development Our sales continued to be slow during Q4 2021, but license revenues fr licensing customers recover Highlights in Today’s Presentation Our sales pipelin: number of TSM opp revitalize and grow ou business 20220309 | 4 Neono
Slide 5: Agenda
Agenda 1, 2. 20220209 1s Q4 and FY 2021 Financial Results Strategy and Business Update Marketing Insights Concluding Remarks WA @neonode”
Slide 6: Q4/'21 Financial Results — Revenues
Q4/’21 Financial Results — Revenues Revenues by Revenue Stream and Region al, itu. alll. S28) 2 Spee: 2. ewe million Revenues by Revenue Stream Ae qn aaa ae 20220309 1 6 $1.0 million 2021 Revenue’ Products 1% YoY @neonode’
Slide 7: Q4/'21 Financial Results — Gross Profit/Margin
Q4/’21 Financial Results — Gross Profit/Margin Gross Profit/Margin Products. 4% rg 2021 Gross Margin = Products 250 -13pp YoY. - Gross Profit/Margin TSMs Adjusted 5 2% Lo = Q4 Adjusted Gross ey sox Margin TSMs 2022.03.09 17 @neonode’
Slide 8: Q4/'21 Financial Results - Operating Expenses
Q4/’21 Financial Results - Operating Expenses Oneroting Exnees 220 0520 at20 ata a2 $12.0 million 2021 Operating Expenses @neonode’ BS Sieve &§ & 8 20220309 1 @
Slide 9: Q4/'21 Financial Results — P&L
Q4/’21 Financial Results — P&L kuso 2019 2020 2021 Revenues 6646 5984 5836 Cost of revenues 6831078 955 Gross margin 5963 4906 4881 Operating expenses 11693 11097 11988 Operating loss -5 730 -6191 -7107 Other expense 34-32-15 Loss before provision for income taxes *5 764-6223 -7122 Provision for inc
Slide 10: Q4/'21 Financial Results — Cash
Q4/’21 Financial Results — Cash Net cash used in operating activities - I iI 97.7 7 i million million al 2021 Net Cash Burn Cash and AgeOUntS Operating Activities \ Resales 20220309 | 10 veonode.com ~ Nasdaq {NEON @neonode’
Slide 11: 20220309 “ iy @neonode”
20220309 1 11 “ iy @neonode”
Slide 12: Vision: To transform the way humans interact with machines
Slide 13: Business Scope and Focus
Business Scope and Focus Smart, intuitive, multimodal HMI solutions Object Detection Tougd ; Mil Industrial ava ire Sensing Scene Analysis Consumer Electronics 2022.02.09 | 13 © Neonode 2003-2022 - worw:neonode.com ~ Nasdaq (NEON) @neonode’
Slide 14: de.com « Nasdaq (NEON) ®@neonode”
de.com « Nasdaq (NEON) ®@neonode”
Slide 15: Why Contactless Touch
Why Contactless Touch In a changing world, the requirements for safe interactions in public spaces ere increasing at an unprecedented level, putting pressure on providers of self-service, multi-user kiosks, elevators and everyone whose product involves physical interactions. With Neonode’s Touch Sen
Slide 16: Elevator passengers avoid touching fixtures
Today, more than ever, elevator passen to avoid touching elevator fixtures a much as possible to reduce the spr and viruses. fons) iosigs 20220309 | 16 Neonode 2001-2002 s/touchless-elevator afety-and-convenience Nasdaq (NEON) ®@neonode”
Slide 17: Neonode Contactless Touch Technology
Neonode Contactless Touch Technology ‘Two ways to go! Parallel plane solution Holographic solution Touch interaction area hovering above or in front of a display Touch interaction on an in-air display or surface rere N44 ce aa 20220309 1 47 Neonode 2001-2021 + yuneneonodecom + Nsdaq {NEON @neonode’
Slide 18: Application Examples
Application Examples Self-Ordering Vending Machines Coffee Machi Self Check-in Digital Signage Medical Point-of-Sale : @ Ee i ° 20220809 1 38 © Neonode 2003-2021 + wirwineonodecom Nasdaq (NEON @neonode’
Slide 19: 7-Eleven Japan Holographic Self-Checkout
Hi 7-Eleven Japan Holographic Self- Checkout T-Eleven takes contactless shopping to the next level with holographic self-checkout kiosks. 2022.03.09 | 19 © Neonode 2003-2022 - warw:neonode.cam ~ Nasdaq NEON)
Slide 20: MARKETON Safe Touch Display
Kk JuncacerOn} MARKETON Safe Touch Display for Contact-Free Devices Developed by MARKETON Co. Ltd. the ‘Safe Touch Display’ has been developed as part of the Korean Government's initiative to expand contact-free services as a response to the COVID- 19 outbreak, 20220309 | 20 Neonode 2001-2022 - winw
Slide 21: Japanese Sushi Chain Contactless Self-Service Kiosks
Japanese Sushi Chain Contactless Self-Service Kiosks One of the largest sushi restaurant chains in Japan has deployed a contactless retrofit solution to all existing self-service kiosks in their over 500 restaurants nationwide. 22.0309 | 21 (© Neonode 2002-2022 winwineonode com Nesdaq (NEON) I @neon
Slide 22: Partner Network
Partner Network (Cr) Vi. OFM Sabre ame . 4 Fyeuine. cefol.y BE wasarsosec metatechno Zs Se JAPAN AEROSPACE Gen melatechno 1% FIngTeK = wstecs erin Yeme® = hkpe’ =e Hele (Gaver B happymeter a SaeR po] dewhurst may 20220809 1 22 © Neonode 2003-2022 « wrw:neonodecom + Nasdaq (NEON @neonode’
Slide 23: Widespread Online Promotion
Widespread Online Promotion Neonode and Partners Touchless tech: Why gesture-based computing could be the next big thin 20220309 | 23 neneonedlecom ~ Nasdaq NEON @neonode’
Slide 24: MultiSensing
MultiSensing Scene Analysis for Automotive and Retail Applications Neonode offers custom applications tailored for each ‘customer's specific needs based on our flexible and scalable software platform MultiSensing + Automotive: Driver and in-cabin monitoring features + Retail: Analytics functions and
Slide 25: Business Model with Significant Revenue Potential
Business Model with Significant Revenue Potential ! Now ! Next | Future T T T Support currer 1 Existing business with | SUPPort current © Continue to expand | more than a dozen ‘| customers and work to I icensing business to license | 1 win new businesses inf i customers, mainly eee militaye 1 neweu
Slide 26: Current Sales Pipeline
ot of Current Sales Pipeline Nasdaq (NEON) q ®@neonode”
Slide 27: Several Growth Initiatives to Accelerate Further
Several Growth Initiatives to Accelerate Further Scaling TSM businessin key markets Increasing focus on new NRE projects to support growth Investments into marketing of license business. and sales to drive demand and grow sales Development of new HW products and extending SW Expansion of partner net
Slide 28: Strategy and Business Update: Marketing Insights
20220309 | 28 Strategy and Business Update . Marketing Insights @neonode’
Slide 29: Communication Framework
Communication Framework We Transform the Way Humans Interact with Machines Pawson | Ste Soa Sameer (SE) (_wsase) (_worwme ) (wre _) é Innoatinin the Ores seat sooleaerate + ReimoghinetheHtl o 9 Eperenee 2022.09.09 | 7 ©Neormte 2001202 - wea reoodecom + Nasa NEON @neonode’
Slide 30: Positioning Neonode Within Aviation
Positioning Neonode Within Aviation ‘SEE B3 THINK Do CARE Brand Awareness Positioning Lead Generation Loyalty & Repeat Sales 08 ioe Qatar's Award-Winning Airport goes Touchless to Safeguard Passengers Transforming Airports Hamad International happyhover"® wins for a Sater Travel Airport is named the
Slide 31: Leads from Aviation Sector
Leads from Aviation Sector SEE Brand Awareness THINK Positioning a Creating a Safer Passenger Experience Qatar's award-winning Hamad International Do Lead Generation Neonode Touch Sensor Modules Selected for Contactless Airport Kiosk Trials by Doostek in South Korea CARE Loyalty & Repeat Sales Neono
Slide 32: Focus on Automotive
Focus on Automotive Sd © fon Awareness eect Wy te. ee @ Tae Pent Technology Areas: Application Areas: * Object detection ¢ HUD systems * Gesture sensing ¢ Infotainment * Scene analysis systems. * Touch * Driver monitoring Time to Converge: Contactless Touch in the Post-Digital Age Putting Innovation
Slide 33: Events and Tradeshows
Events and Tradeshows Neonode and Partners 20220309 | 38 neonede.com ~ Nasdaq NEON @neonode’
Slide 34: Concluding Remarks
Strategy and Business Update 4. Concluding Remarks 2022.03.09 | 34 “ iy @neonode”
Slide 35: Concluding Remarks
* Q4 2021 sales slow, but license revenues recovered * Very interesting sales p © Touch Sensor M Concluding © NRE and li Remarks * Good possibilitie ; and licensing business 20220349 | 35 Neonode 2001-2022 - vow.neonede com - Nasdsq {NEON} ®@neonode’
Slide 36: 20220309 “ iy @neonode”
20220309 1 36 “ iy @neonode”
Slide 37: Interested in a follow up?
Interested in a follow up? Meet the CEO, CFO and other team members at Neonode’s offices in Garnisonen in Stockholm, Sweden, March 22. Details will be posted on our 8 neonode’® website and in social media. info@neonode.com neonade,com MB etsciveoneonodeneusieter 20220209 37 © Neonode 2003-2022 - wer
Slide 38: Appendix
Appendix @neonode’
Slide 39: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to presenting our financial results in accordance with accounting principles generally accepted in the United States (“GAAP”), we use adjusted gross margin to measure our financial performance. We define adjusted gross margin as gross margin excluding AirBar s