Corporate Presentation Roadshow

June 24th, 2020

Autonomous Driving Developing Rapidly & Great Potential for Optical Application

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●Interior View

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●Rear View

●Drive Recorder

●Head-up Display

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LiDAR Optical System

Smart HeadlightOptical System

Front View(ADAS) Full Display Mirror

360°Surround View

Gesture Recognition

Driver Monitoring Control

Attractive Opportunity in Automotive Camera Market(By application)

（Source: 2020 TSR Report）

• In the next 15 years or more, the automotive camera market will sustain growth and is projected to reach USD 35.2 billion by 2035Y despite the impact of COVID-19 in 2020Y.

The sensing camera market will grow rapidly with the popularity of ADAS and is becoming a mainstay of growth in automotive camera.

• Due to the impact of the COVID-19, global automobile sales will fall by more than 25% and the global automotive camera market will decline by 7.2% compared with 2019Y(from TSR research data ).

Given the lasting impact of the economic downturn, global automobile demand will remain sluggish and it is estimated that the market size in 2021 can return to the level of 2019Y.

• Due to the China’s economy is recovering earlier than other regions of the world, and Sunny is actively responding to the demand and production. The impact on Sunny is more positive than global market

impact.

Sunny will keep No.1 in the automotive lens field and will rise further.

TSR发布后替换成最新图表

1. Attractive Opportunity in Global Automotive Camera Market

（Source：2020 TSR Report）

Revenue Trend（M US$）Volume Trend（K unit）

• The total investment of the LiDAR market has reached to $1.216 billion since 2016. The entire automotive LiDAR industry has begun to settle and the capital market has

gradually slow down in the past two years. MEMS LiDAR and Flash LiDAR will be the mainstream technology trend in the future.

• LiDAR market revenue will sustain growth at a highly CAGR of 64% during 2019Y-2024Y.

• LiDAR market is expected to reach $4.2 billion in 2024Y and LiDAR in Robotaxi vehicles will be accounted for 2/3.

（Source: 2019 TSR Report）

Revenue Trend（M US$）Volume Trend（KK unit）

CAGR64%

CAGR110%

Market Investment-by Technology（M US$）

Automotive LiDAR Market Analysis

2. Attractive Opportunity in Global Automotive LiDAR Market

Wide range of product formsWide range of product types (lens, windows, scanning components)

2. Improving LiDAR Product Layout & Maximizing Customer Satisfaction

• Providing optical solutions based on customer needs, including but not limited to optical components, lens components, optomechanical modules, etc.

• Providing core components for typical representative enterprises and achieving multiple mass production; mastering LiDAR market trends and the most advanced product technologies.

• Established a strategic cooperation with Top LiDAR player LeddarTech to accelerate LiDAR deployment for advanced driver assistance systems and autonomous driving applications ；

• Supporting the global leading LiDAR players and Tier-1 customers, and supplying international auto brands(>5 well-known OEM) to achieve commercial use.

2. Deepening International Market Layout &Starting a New Phase in LiDAR Business

Attractive Opportunity in Automotive HUD Market

3. Global Automotive HUD Market Opportunity

• During the period of 2019Y-2030Y, HUD market capacity and

adoption rate will increase, especially after 2020Y.

• HUD market revenue is estimated to be $1billion in 2020 and

is expected to reach $1.7B in 2027 at a CAGR of 20% from

2020 to 2025. This growth is driven by the improvement in the

level of automated driving and the introduction of EV as well

as the continued expansion of HUD installations by OEM.4.81

6.87

8.96 10.44

12.19

13.86

15.36 16.39

17.42 18.47

19.57 20.75

5.3%

7.5%

9.4%10.6%

12.0%

13.5%

14.8%15.7%

16.3%17.0%

17.6%18.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

0.00

5.00

10.00

15.00

20.00

25.00

2019Y 2020Y 2021Y 2022Y 2023Y 2024Y 2025Y 2026Y 2027Y 2028Y 2029Y 2030Y

2019Y-2030e HUD Market (Volume & Adoption Rate)

HUD market volume（KK） HUD adoption rate（%）（Source：2019 TSR Report）

2020E 2027E

USD1.0B

USD1.7B

CAGR

20%

• Providing optical solutions based on customer needs, including but not limited to PGU, freeform mirror, optical components, etc., to maximize customer satisfaction.

• Accelerating the layout of PGU products and developing the world's first dual-screen projection display PGU with leading technology.

TFT PGU DLP PGU MEMS PGUDual Screen

Projection PGU

Projection lens Freeform mirror Flat mirror

Collimating lensMicro lens array

DLP Chip

Optics

OpticsProjection

LensLEDs

Optics

Mirrors

TFT Solution DLP Solution

LCOS SolutionLaser MEMS Solution

LaserLaser driver

MEMS

PGU

Core Optical Components

Wide range of product forms Wide range of product types

3. Advanced HUD Product Layout & Successful Development for PGU

• Establishing strategic partnerships with well-known HUD players, and obtain orders from leading global customers with mass production；

• Supply to Lincoln which is the first manufacturer to use HUD with DLP technology;

• Supply to Chinese new energy cars and China's leading independent brand cars.

3. Sunny New Achievements in HUD Business Layout

Traditional headlight

• General lighting

• Different area control

• ADB Glare-free lighting

10~100 grade

(Matrix LED)• ADB Glare-free with high accuracy

• Only simple patterns, symbols

1000 grade(EVIYOS)

Million grade(DLP )• ADB Glare-free with ultra high accuracy

• Intelligent environment interaction with

high resolution

• Rich projection content

(various patterns, road signs, text)

4. Attractive Opportunity in Global Automotive Smart Headlight Market

High resolution /Intelligent

More and more general lighting will realize intelligent functions in the future of autonomous driving scenes.

• Providing a variety of optical solutions based on customer needs, product forms include but not limited to optical components, lens

components, optomechanical modules, etc.;

• Independently developing a new high-resolution smart headlight product to enrich the product line;

• Focusing on product research and development in emerging areas and always mastering the most leading product technologies.

Million Pixel

-DLP Headlight（Reflective）

Million Pixel

-DLP Headlight（Transmissive）10K Pixel

-EVIYOS Headlight

Traditional Headlight Optical Lens

Molding Glass Lens Elements Glass Lens Elements Plastic Lens Elements

Smart Headlights Products

Projection Lamp Products Dynamic Projection Products

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2

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4. Sunny's Smart Headlights with Diversified Product Layout

• Cooperating with global TOP headlights enterprises and making substantive business progress;

• It is expected to achieve mass production in 2022.

“Optical navigation”——Smart navigation projection

“Optical zebra crossing”——Pedestrian information interaction

(projecting the zebra crossing on the road)

“Optical pathway”—— Intelligent lane marking for driving

assistance judgment

The pictures above show the effects of smart headlight equipped with Sunny’s core optical components.

4. Sunny’s Smart Headlights Business with Substantial Progress

• Independently developing a new generation of high-resolution intelligent headlights, subverting traditional optical design and

maximizing customer satisfaction;

The world's first reflective high-resolution headlight

OColor difference

50%

Weight reduction

40%

Weight reduction

20%Volume reduction

4. Sunny Smart Headlight Demo Successful Development & Great Market Feedback