Interim Report January - September 2021 - Seite 2

• Three of the largest procurements of DMS to date are due for sourcing in coming quarters. Smart Eye is a force to be reckoned with in all three. There are also several smaller procurements soon to be decided in the near term.
• Close to all global OEMs will procure their first or second generation DMS during the next couple of years, fueled by regulatory tailwind in Europe, and soon in other regions of the world.
• We stand firm by our previously communicated estimate that there is an estimated lifetime value of 10 billion SEK or higher in the procurements that we expect during the coming 18 months, including the three big ones mentioned above.
• We hold a very positive view on the outlook of winning more car models on the current platforms. The recently communicated Japanese design win is an example of that.
• Interior Sensing is a budding market opportunity that soon will be in full swing in the automotive procurement circles. By joining forces with Affectiva we are perfectly positioned for this development.
• We believe that Interior Sensing is heading towards integrating multiple sensors into one multimodal sensing unit. This is logical for reasons of functionality, cost, physical size, and power consumption. We already see this trend in the sensors on the outside of the car. Smart Eye will continuously explore this exciting development and how it applies to automotive and other industries in the future.

While selling software to the world's largest car OEMs is our main task, we also have the business unit AIS, developing an offering for the aftermarket and small OEMs. The system consists of hardware and software bundled together. We are still pre-revenue in that deliveries have not yet started, except that a handful customers have tested early production samples. We are making ourselves ready to start production ramp-up and deliveries for early next year.

Research
Starting in quarter three we now have two business units offering products to research customers. The first one is Research Instruments, selling high-end eye tracking products to advanced customers for more than 20 years. The growth was 51% in the third quarter.
In addition we have the new business unit Media Analytics, which is now a part of Smart Eye since the acquisition of Affectiva. The main business is advertisement testing with Emotion AI. Media Analytics also had a strong quarter where business is rebounding after Covid.

Affectiva Integration
One quarter has passed since we acquired Affectiva. The integration is in full swing,.Even though we have not finalized every aspect of the ingration yet, the most important thing is that we have already started to work on Interior Sensing prucurement processes for automotive customers. This shows that the timing for the merger was right. The automotive side of Affectiva is being tightly integrated with Smart Eye´s automotive team, while Media Analytics' team operates more independently. It is pleasing to see the positive spirit and energy that has been created by the teams.