Slide 1: Investors' Presentation for H1 2019
INVESTORS’ PRESENTATION FOR H1 2019 XTPL S.A. 2019, September 30th xtpl.com
Slide 2: xtpl.com
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Slide 3: Revolution of Print
REVOLUTION OF PRINT Although books existed for almost 3 000 years, until Gutenberg invented the Today, the advantages of print - such as scalability, lower cost, simplicity printing press in the 15th century they were rare, hard to manufacture and very and speed - can also be used in the production
Slide 4: Market Size & Megatrend
MARKET SIZE & MEGATREND • Market value (printed, flexible and organic electronics) in 2018 - approx. USD 31.7 billion PRINTED ELECTRONICS • Estimated market value in 2029 - USD 77.3 billion • CAGR 2018-2029 – 8.4% STRONG MEGATREND IN ELECTRONICS • Production of high-tech devices with cost effective
Slide 5: Solution
SOLUTION XTPL enables global manufacturers of new generation electronics by providing ultra-precise printing technology to be implemented on their production lines. XTPL platform technology will facilitate the production of (among others): smart glass with innovative photovoltaic cells with new gene
Slide 6: Breakthrough Technology
BREAKTHROUGH TECHNOLOGY XTPL develops and commercializes deep technology. The solution allows obtaining ultra-thin structures for various industrial applications. XTPL method is a breakthrough. This is due to the unique combination of several features: • additive method - allowing significant time a
Slide 7: Additional Method vs Subtractive
ADDITIONAL METHOD VS SUBTRACTIVE xtpl.com 7
Slide 8: Unparalleled Precision
UNPARALLELED PRECISION CURRENT STANDARD XTPL METHOD Minimal structure size 20 μm Minimal current structure size 1 μm The main competitive advantage of XTPL additive solution for ultraprecise deposition is unprecedented precision that cannot be replicated by any other printing method in the world. Fo
Slide 9: Selected Financial Data
WYBRANE DANE FINANSOWE STRUCTURE OF BALANCE SHEET CASH FLOW Net cash flows from investing activities Net cash flows from operating activities Net cash flows from financial activities *dane w tys. PLN xtpl.com 9
Slide 10: P&L
P&L 01.01.2018 – 01.01.2019 - 30.06.2019 Revenues from subsidies for H1 2019 at EUR 30.06.2018 including ESOP without ESOP 0.371 million; an increase of 25% compared to H1 2018, which is in line with plans to co- Revenue from sales 296 371 371 finance the costs of technology development with public
Slide 11: Milestones: Capitalization & Development
CAPITALIZATION & DEVELOPMENT MILESTONES xtpl.com 11
Slide 12: Shareholding Structure
SHAREHOLDING STRUCTURE Number of shares = Number of votes LP SHAREHOLDER NUMBER OF SHARES HELD % SHARE % of shares = % of votes 1. Filip Granek 303,288 15.93 2. Sebastian Młodziński 299,852 15.75 3. Pankiewicz sp.k. (formerly Leonarto sp. z o.o.)* 229,015 12.03 4. Heidelberger Beteiligungsholding AG
Slide 13: Highlights H1 2019
HIGHLIGHTS X139L H12019 — * J) / —_— NS \ J, é | —_ MC
Slide 14: Focus on Strategic Application Fields
FOCUS ON STRATEGIC APPLICATION FIELDS DISPLAYS SMART GLASS XTPL printed, XTPL printed, conductive lines conductive lines USPs: USPs: • improvement of production yield in the advanced manufacturing lines • faster conversion of glass from light to dark and vice versa • ultraprecise additive technology
Slide 15: First Target Markets with Vast Potential
FIRST TARGET MARKETS WITH VAST POTENTIAL DISPLAYS SMART GLASS Application: open defects repair (ODR) Application: smart glass Go to market strategy: Go to market strategy: Market readiness: integration with partner’s technological process Market readiness: III faze of advanced PoC Market partner: ye
Slide 16: Commercialization in Selected Application Fields
COMMERCIALIZATION IN SELECTED APPLICATION FIELDS DISPLAYS SMART GLASS • expansion of the portfolio of active sales prospects • phase III proof of concept project for a leading American manufacturer • implementation of a plan of reference visits in XTPL laboratories for interested clients • the imple
Slide 17: XTPL Inc. – Branch in USA
XTPL INC. – BRANCH IN USA FEBRUARY 2019 • XTPL Inc. - a subsidiary of XTPL S.A. - launched in in Sunnyvale, in Silicon Valley • Board members of XTPL Inc .: Filip Granek, Harold Hughes, Amir Nayyerhabibi and Hiroshi Menjo • development of structures and operations in the USA due to the concentration
Slide 18: XTPL Debuts on WSE
XTPL DEBUTS ON WSE FEBRUARY 2019 • the company's debut on the WSE on February 20, 2019 (transfer from the New Connect alternative trading market) • company in the interest scope of subsequent institutional investors, both international and domestic, investing in global breakthrough innovations • imp
Slide 19: New Incentive Program for Employees
NEW INCENTIVE PROGRAM FOR EMPLOYEES APRIL 2019 • new employee incentive program for key personnel of XTPL S.A. and XTPL Inc. • the pillars of the program are share options (with an exercise price of PLN 165), representing a maximum of 10% the company's capital and existing XTPL shares • conditional
Slide 20: XTPL on the Podium
XTPL ON THE PODIUM OF APRIL 2019 • XTPL on the podium of the China Innovation & Entrepreneurship competition in the advanced manufacturing category • the competition attracted high-quality projects and companies from around the world • the main goal of the event is the development of the hi-tech ind
Slide 21: Display Week in San Jose
DISPLAY WEEK IN SAN JOSE MAY 2019 • presentation of additive XTPL technology for the display sector • 7,000 participants: decision makers from leading companies involved in the design, development, production and purchase of electronic displays • dozens of advanced business talks • expansion of the
Slide 22: Hiroshi Menjo Joined Management Board of XTPL Inc.
HIROSHI MENJO JOINED TO THE MANAGEMENT BOARD OF XTPL INC. MAY 2019 • Hiroshi Menjo on the board of directors of XTPL Inc. • co-founder and managing partner at NSV Wolf Capital, the strategic fund in Silicon Valley • career at Konica, research at Massachusetts Institute of Technology and MIT Microele
Slide 23: Expansion of the Patent Portfolio
EXPANSION OF THE PATENT PORTFOLIO The first two patent applications relate to the ultra-precise deposition process (UPD). Included in the PCT procedure. K&L Gates, The third patent application concerns the ink used in the UPD Palo Alto, CA, process. Included in the PCT procedure. USA Another patent
Slide 24: Most Important Highlights After the Report Date
THE MOST IMPORTANT HIGHLIGHTS AFTER THE REPORT DATE xtpl.com 24
Slide 25: Successful Issue of XTPL Shares
SUCCESSFUL ISSUE OF XTPL SHARES JULY 2019 • issue of shares for over PLN 10 million • capital increase implemented through private subscription • participation of both Polish individual investors and Western institutional investors • nearly half of the new securities went to foreign entities • the p
Slide 26: Licensing of Open Defect Repair Technology
LICENSING OF OPEN DEFECT REPAIR TECHNOLOGY AUGUST 2019 • adopting licensing as a method of commercializing technology on the display market for use in defect repair • licensing prefers most potential customers • very attractive model mainly due to the favorable ratio of assumed cost to potential eff
Slide 27: Significant Growth of the Patent Cloud
SIGNIFICANT GROWTH OF THE PATENT CLOUD SEPTEMBER 2019 • the company declares 26 patent applications filed by the end of 2020 • currently, XTPL has filed 9 patent applications (which means an almost 3-fold increase in the patent cloud) • secured unique intellectual property determines the company's v
Slide 28: Company
x19 L COMPANY —
Slide 29: Strong Interdisciplinary Team
STRONG INTERDISCIPLINARY TEAM Currently 45 people in Poland and United States TECHNOLOGY BUSINESS interdisciplinary, well-balanced business leaders & highly skilled team, with vast knowledge & professionals who possessknow- experience in: how & experiencein: • chemistry • product development • physi
Slide 30: Business Model
BUSINESS MODEL XTPL commercializes its technology dedicated to a specific application field, using one of three models: LICENSING (the company develops technological solution dedicated to a particular application field, which is licensed to a partner who on its basis builds devices that allow the te
Slide 31: Protected Intellectual Property
PROTECTED INTELLECTUAL PROPERTY XTPL offers complete solution for printing electrically conductive & nonconductive structures on the micron scale. The apparatus, the ink and the unique method itself is protected by international patent applications. Patent applications are submitted in collaboration
Slide 32: Vision & Strategy
VISION & STRATEGY • advanced platform technology to be implemented on production lines • solution providing technological and competitive advantages for the producers • enabling technology that will allow manufacturers to outperform their competition • XTPL Inside – as a remake of a well-known Intel
Slide 33: Building Value
BUILDING VALUE We deliver platform technology aimed to large and fast growing electronics market We enable quantum technological progress in several sectors We have vast growth potential, appreciated by potential partners and investors – e.g. two well-known German investment funds xtpl.com
Slide 34: Shaping Global Nanofuture
SHAPING GLOBAL NANOFUTURE The same way we inexpensively, easily and quickly print books and newspapers today, we will be able to print displays, solar cells, processors, biosensors and other advanced elements in the future. This is not just a vision anymore. This is fast approaching reality! xtpl.co
Slide 35: Thank You
XTPL S.A. Stabłowicka 147 54-066 Wrocław, Poland xtpl.com THANK YOU