ACSL : Financial Results Material for the 1st Quarter of Fiscal Year Ending December 31st, 2021

Financial Results Material for 2021/12 First Quarter

ACSL Ltd

Aug 12th, 2021

CONFIDENTIAL

This materials should not be used without prior consent from ACSL Ltd.

FY2021 1Q (2021/04-06) Highlights

• ACSL Accelerate, announced in August 2020, aims for sales of 100 billion yen in 10 years and sales of over 5 billion yen in the fiscal year ending
  March 2023.
• The industrial drone market is expanding and the market is changing toward social implementation, and in addition to the current markets of Level 1 and 2, the environment and our efforts are steadily progressing for Level 3 and Level 4, a market with great potential in the near future.
• In addition to the four measures set forth in the mid-term management policy "ACSL Accelerate," the company is promoting a variety of initiatives, including collaborations with other companies, in order to meet the requirements for market and customer expansion.
• • In June 2021, a proposal to amend the Civil Aeronautics Law to allow Level 4 flights over manned areas (including cities) was approved.
  • The Japanese government announced its policy for procuring security-capable drones in September 2020, and ACSL announced in April 2021 that it will launch a small aerial photography drone for government procurement in October 2021 or later.
  • In June 2021, ACSL entered into a capital and business partnership with Japan Post and Japan Post Capital for the practical application of drone deliverC. With the realization of "Level 4" approaching and increasing awareness of security and safety, the two companies will promote the social implementation of drones as a new means of logistics and delivery.
  • The enclosed environment drone "Fi4", co-developed with NJS, is now launched. ACSL is is promoting four measures (development of application-specific drone, subscription services, overseas expansion mainly in Asia, and technological collaboration through CVC) listed in the business strategy of the mid-termmanagement direction for social implementation of drones, aiming to expand the market and acquire customers.
• Changed the company name (Autonomous Control Systems Laboratories to ACSL) to improve global recognition, and changed the fiscal year (from the end of March to the end of December) to improve transparency of business performance.
• FY21/12 1Q sales was 267 Mn JPY; order backlog as of the end of June was 127 Mn JPY. Operating loss of 308 Mn JPY.
• FY21/12 (9 months), we expect sales of 350 Mn JPY and an operating loss of 1.0 billion yen; in April 2011 - March 2022, we expect sales of more than 2.5 billion yen due to an increase in sales of small aerial photography drone.

CONFIDENTIAL / Copyright© ACSL Ltd. ALL RIGHTS RESERVED.

2

1

2

3

4

"ACSL Accelerate" and Business Highlights

FY21/12 1Q (Apr.-Dec. 2021) Results

FY21/12 Plan

Appendix

CONFIDENTIAL / Copyright© ACSL Ltd. ALL RIGHTS RESERVED.

3

What ACSL will accomplish

MISSION

Liberate Humanity Through Technology

VISION

Revolutionizing social infrastructure by pursuing cutting-edge robotics technology

CONFIDENTIAL / Copyright© ACSL Ltd. ALL RIGHTS RESERVED.

4

ACSL is an industrial drone manufacturer pioneering drone market

ACSL is an industrial drone manufacturer developing application-specific drones through site visits, discussions, and demonstrations with customers to replace and improve operations, using proprietary autonomous control as its core technology.

ACSL core technology

The proprietary control technology consists of the "cerebrum",

which actively grasps the surrounding environment, and the "cerebellum", which controls flight in any environment

Knowledge through customer projects

Develop specific drones through verification of technical and economic requirement for each applications through discussions with customers and demonstrations in actual environments

Nihon Unisys, Ltd.

CONFIDENTIAL / Copyright© ACSL Ltd. ALL RIGHTS RESERVED.

5