Smart Eye : Annual Report 2021

This is Smart Eye 04

2021 in brief 08

Letter from the CEO 12

Human Insight AI 14

Corporate strategy 16

Innovation 20

Automotive Solutions 26

Applied AI Systems 32

Research Instruments 36

Media Analytics 40

Annualreport2021

This is Smart Eye

Smart Eye is the global leader in Human Insight AI, technology that understands, supports and predicts human behavior in complex environments. Bridging the gap between humans and machines for a safe and sustainable future.

Today, our technology is embedded in next-generation vehicles, leading the way towards human-centric mobility through Driver Monitoring Systems and Interior Sen- sing solutions. Our Research Instruments offer unparalleled insights into Automotive,

Aviation & Aerospace, Assistive Technology, Media & Marketing, Psychology and many more fields. Our subsidiary Affectiva is pioneering Emotion AI, connecting machine logic with human empathy to gain a deeper understanding of how consumers enga-ge with their content, products and services, in automotive, media & entertainment, market research and beyond. Our subsidiary iMotions provides the world's leading biosensor software platform, that synchronizes data streams in real time from multiple sensors.

Smart Eye was founded in 1999 and is headquartered in Sweden with offices in the US, UK, Germany, Denmark, Egypt, Singapore, China and Japan. A publicly traded company since 2016, our customers include NASA, Nissan, Boeing, Honeywell, Volvo, GM, BMW, Geely, Harvard University, over 1,300 research organizations around the world, 70% of the world's largest advertisers and 28% of the Fortune Global 500 companies.

Our Vision

Bridging the gap between humans and machines.

As the leader in Human Insight AI, we develop technology that understands, supports and predicts human behavior in complex en- vironments. Using machine learning, massive amounts of data and a multimodal approach, we connect logic and emotions to gain deep insights into how people interact with the world. Our vision is to create the most seamless connection possible between humans and machines, for a safer and more sustainable future.

Our Mission

Sustainable progress through science and technology for the benefit of all.

Our mission is rooted in the social, ecological and technological chal- lenges faced by current and future generations. We're convinced that a world in better balance is within reach, and that our technology is a vital component for a framework connecting humans and machines in automotive, aviation, neuroscience, behavioral research, media analytics and many other fields. Enabling future innovations that will save and improve the quality of human lives everywhere.

06 | ANNUAL REPORT 2021 - SMART EYE

Smart Eye Core Values

Human

We value human connection

Diversity and inclusion make our technology and our company better.

We develop technology in the service of humanity - with creativity, empathy, and respect. We value an open, collaborative, warm and fun corporate culture that fosters individual well-being and makes our families a priority.

We deliver value, but more importantly, we value being human.

Groundbreaking

We always learn and innovate

We are a company of firsts; therefore, we think beyond limitations to push the boundaries of what is possible. We are the world experts in what we do and with an open mind we never stop learning. We continuously strive to build things that have never existed before. Every technological leap forward is preceded by a mind thinking about the future.

Every technological leap forwards is preceded by a mind thinking about the future.

Ethical

We have high integrity and ethics

We hold the highest standards for all we do, especially the accuracy of our science. We are committed to the ethical development and deployment of AI. We respect people's privacy, speak with clarity and transparency about our technology, and encourage others to do the same. It's not enough to have good intentions, it's what you do that defines you.

With good intentions, it's what you do that defines you.

Perseverant

We get stuff done

Our curiosity, purpose and passion drive us to solve hard problems and take on new challenges. We work hard - not because we have to, but because we want to. We strive for excellence and we fundamen-tally believe when there is a will, there is a way.

Impossible only means you haven't found a way yet.

SMART EYE - ANNUAL REPORT 2021 | 07

Significanteventsof theyear

13

JANUARY

New design win from Chinese OEM

2021 IN BRIEF

Smart Eye receives a new design win from one of China's largest OEMs - our third customer on the

Chinese market. The order is for one new car model on a new plat- form, with an estimated revenue of SEK 50 million, based on forecasts of the estimated product life cycle.

11

MARCH

New fleet solution launches

Smart Eye introduces its first fleet and aftermarket Driver Monitoring

System with our proprietary, purpose-built hardware and industry leading software. Designed to be easily deployed within existing vehicle cabins or small volume OEMs.

1729

JUNE

Smart Eye acquires Affectiva

Smart Eye and Emotion AI pioneer Affectiva join forces to solidify our stronghold on the emerging market for Interior Sensing systems. By combining our industry-leading technologies and teams, we will bring to market unparalleled, automotive-grade Interior Sensing AI, better and faster than the competition.

JULY

Four new design wins from a global North American OEM

The new order extends Smart Eye's DMS solution to four new car models, in addition to the three previously communicated design wins with the customer. The estimated revenue of the design wins is SEK 100 million, based on forecasts of the estimated product life cycle.

125

OCTOBER

One new design win from a major Japanese OEM

Smart Eye announces a new design with a global Japanese customer, with an estimated re- venue of SEK 25 million, based on forecasts of the estimated product life cycle. The order is for one new car model on an existing platform, which will go into production in late 2022.

NOVEMBER

Smart Eye acquires iMotions

The combined companies bring together complementary exper- tise in sensing technologies and biosensor software to create the first powerhouse for analyzing emotional, cognitive and behavio- ral data, delivering holistic human insights.

SMART EYE -ANNUAL REPORT 2021 | 09