#1LIONHEART III CORP lar² PITHELENCE ON INS EQUILIBRIUM ECONOMY SECURITY MATTERS IMPACT ESG INVESTMENT Digitising physical objects to enable the circular and closed loop economy Security Matters Limited (ASX:SMX) Summer 2022 1#2Australia - Important notice and disclaimer This investor presentation (Presentation) is dated 22 July 2022 and has been prepared by Security Matters Limited ACN 626 192 998 (Security Matters). Summary information The information in this Presentation is of a general background nature regarding a transaction, is in summary form and does not purport to be complete. It does contain all information relevant or necessary for an investment decision or that would be required to be included in a prospectus under the Corporations Act 2001 (Cth) (Corporations Act). It should be read in conjunction with Security Matters' most recent financial report and other period and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX) available at www.asx.com.au. The content of this presentation is provided as at the date of the Presentation (unless otherwise stated). The information in this Presentation is subject to change without notice. No representation or warranty, express or implied is made by Security Matters or any of its advisers as to the accuracy, adequacy or reliability of any information contained in this Presentation. Not a prospectus or an offer of securities This Presentation is not a prospectus or any other offering document under Australian law (and will not be lodged with the Australian Securities and Investments Commission (ASIC)) or any other law. This Presentation is for information purposes only and is not an invitation or offer of securities for subscription, purchase or sale in any jurisdiction. The distribution of this Presentation outside Australia may be restricted by law. Any recipient of this Presentation who is outside Australia must seek advice on and observe any such restrictions. This Presentation may not be reproduced or published, in whole or in part for any purpose without the prior written permission of Security Matters. Not financial or product advice This Presentation does not constitute financial product or investment advice or a recommendation to acquire securities in Security Matters. It has been prepared without taking into account the objectives, financial position or needs of individuals. You are solely responsible for forming your own opinions and conclusions on such matters and the market and for making your own independent assessment of the information provided. No reliance may be placed for any purpose whatsoever on the information included in this Presentation or on its accuracy or completeness. SECURITY MATTERS An investment in securities is subject to known and unknown risks, some of which are beyond the control of Security Matters and its directors, including possible loss of income and principal invested. Security Matters does not guarantee any particular rate of return or the performance of Security Matters, nor does it guarantee any tax treatment. Cooling off rights do not apply to securities. Financial data All dollar values are in Australian dollars (A$) unless stated otherwise. Certain figures, amounts, percentages, estimates, calculations of value and fractions provided in this Presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from figures set out in this Presentation. Past Performance Past performance information given in this Presentation is given for illustrative purposes only and should not be relied on as (and is not) an indication of future performance. EQUILIBRIUM ECONOMY Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. Or² INTELLIGENCE ON THINGS 2#3Australia - Important notice and disclaimer Cont. Future Performance This Presentation may contain certain "forward-looking statements". The words "expect", "anticipate", "estimate", "intend", "believe", "guidance", "should", "could", "may", "will", "predict", "plan" and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice and involve known and unknown risks and certainties and other factors which are beyond the control of Security Matters and its directors and management and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. This includes statements about market and industry trends, which are based on interpretations of current market conditions. SECURITY MATTERS Forward looking statements are provided as a general guide only and should not be relied on as an indication or guarantee of future performance. Actual results, performance or achievements may differ materially from those expressed or implied in such statements and any projections and assumption on which these statements are based. These statements may assume the success of Security Matters' business strategies. The success of any of those strategies will be realised in a period for which the forward looking statement may be been prepared or otherwise. Prospective investors are cautioned not to place undue reliance on forward-looking statements. No representation or warranty, express or implied is made as to the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects, returns or statements in relation to future matters contained in this Presentation. The forward looking statements are based on information available to Security Matters as at the date of this Presentation. Except as required by law or regulation (including the ASX Listing Rules), none of Security Matters, its representatives or advisers undertakes any obligation to provide any additional or updated information whether as a result of a change in expectations or assumptions, new information, future events or results or otherwise. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward looking statements. Statements about past performance are not necessarily indicative of future performance. Disclaimer To the maximum extent permitted by law, Security Matters (including its subsidiaries, related bodies corporate, shareholders, affiliates, advisers and agents): disclaims all responsibility and liability (including, without limitation, any liability arising from fault, negligence or negligent misstatement) for any loss arising from this Presentation or reliance on anything contained in or omitted from it or otherwise arising in connection with this Presentation; disclaims any obligations or undertaking to release any updates or revision to the information in this Presentation to reflect any change in expectations or assumptions; and does not make any representation or warranty, express or implied as to the accuracy, reliability, completeness of the information in this Presentation or that this Presentation contains all material information about Security Matters or which a prospective investor may require in evaluating a possible investment in Security Matters or acquisition of shares in Security Matters or likelihood of fulfilment of any forward looking statement or any event or results express or implied in any forward looking statement. Acceptance By attending an investor presentation or briefing or acc ing, accessing or revi ing this Presentation you acknowledge and agree to the terms set out in this section of the Presentation titled "Important Notice and Disclaimer" EQUILIBRIUM ECONOMY Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. Or INTELLIGENCE ON THINGS 3#4Disclaimer US This presentation (together with oral statements made in connection herewith, the "Presentation") is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination (the "proposed business combination") between Security Matters Limited ("Security Matters" or "SMX") and Lionheart III Corp ("Lionheart") and related transactions and for no other purpose. No Offer or Solicitation This Presentation is not an offer, or a solicitation of an offer, to buy or sell any investment or other specific product. This Presentation is for informational purposes only and does not constitute or include an offer to sell, or a solicitation of an offer to purchase or subscribe for, equity interests or securities of any kind or a solicitation of any vote of approval, nor shall there be any sale, issuance or transfer of any such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Any such offer or solicitation will be made only in connection with the delivery of a prospectus meeting the requirements of the Securities Act of 1933, as amended ("Securities Act"), or exemptions therefrom. SECURITY MATTERS This Presentation is not intended to form the basis of any investment decision by the recipient and does not constitute investment, tax or legal advice. You should consult your own advisers concerning any legal, financial, tax or other considerations concerning the opportunity described herein as well as the merits and risks involved. The general explanations included in this Presentation cannot address, and are not intended to address, your specific investment objectives, financial situations or financial needs. Readers should carefully review the risk factors and other cautionary statements described therein before making an investment decision. No representation, express or implied, is or will be given by Security Matters, Lionheart or their respective affiliates and advisors as to the accuracy or completeness of the information contained in this Presentation. Important Information and Where to Find It In connection with the potential business combination, a registration statement on Form F-4 (the "Form F-4") is expected to be filed by Empatan Public Limited Company, a public limited company incorporated in Ireland with registered number 722009 (the "Parent") with the U.S. Securities and Exchange Commission (the "SEC"). Upon the closing of the proposed business combination, it is expected that the Parent will be the ultimate parent of Lionheart and Security Matters. The Form F-4 will include a preliminary proxy statement / prospectus to be distributed to holders of Lionheart's common stock in connection with Lionheart's solicitation of proxies for the vote of its stockholders in connection with the proposed business combination and other matters as described in the Form F-4, as well as a prospectus relating to the offer and sale of securities to be issued in connection with the completion of the business combination. This document does not contain all the information that should be considered concerning the proposed business combination and is not intended to form the basis of any investment decision or any other decision in respect of the proposed business combination. Lionheart and SMX urge investors, stockholders and other interested persons to read, when available, the Form F-4, including the proxy statement/prospectus included therein and the amendments thereto as well as any other documents filed with the SEC in connection with the proposed business combination as these materials will contain important information about SMX, Lionheart, the Parent and the proposed business combination. After the Form F-4 has been filed and declared effective, the definitive proxy statement/prospectus will be mailed to Lionheart's stockholders as of the record date established for voting on the proposed business combination. Lionheart's stockholders will also be able to obtain copies of such documents, without charge, once available, at the SEC's website at www.sec.gov, or by directing a request to: Lionheart III Corp, 4218 NE 2nd Avenue, Miami, Florida 33137. EQUILIBRIUM ECONOMY Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. or² 4 INTELLIGENCE ON THINGS#5Disclaimer US (cont'd) INVESTMENT IN ANY SECURITIES DESCRIBED HEREIN HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SEC OR ANY OTHER REGULATORY AUTHORITY NOR HAS ANY AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED THEREIN. Industry and Market Information Information contained in this Presentation concerning Security Matters' industry and the markets in which it operates, including Security Matters' general expectations and market position, market opportunity and market size, is based on information from Security Matters' management's estimates and research, as well as from industry and general publications and research, surveys and studies conducted by third parties. In some cases, we may not expressly refer to the sources from which this information is derived. Management estimates are derived from industry and general publications and research, surveys and studies conducted by third parties and Security Matters' knowledge of its industry and assumptions based on such information and knowledge, which we believe to be reasonable. In addition, assumptions and estimates of Security Matters' and its industry's future performance are necessarily subject to a high degree of uncertainty and risk due to a variety of factors. These and other factors could cause Security Matters' future performance and actual market growth, opportunity and size and the like to differ materially from our assumptions and estimates. Trademarks All rights to the trademarks, copyrights, logos and other intellectual property listed herein belong to their respective owners and Security Matters' or Lionheart's use thereof does not imply an affiliation with, or endorsement by the owners of such trademarks, copyrights, logos and other intellectual property. Solely for convenience, trademarks and trade names referred to in this Presentation may not appear with the ® or TM symbols, but such references are not intended to indicate, in any way, that Security Matters or Lionheart will not assert, to the fullest extent under applicable law, their rights or the right of the applicable licensor to these trademarks, service marks and trade names. Use of Non-GAAP Financial Measure SECURITY MATTERS This Presentation includes a presentation of Net Debt, which is a non-GAAP financial measure, that is not prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and that may be different from the non-GAAP financial measure used by other companies. Security Matters and Lionheart believe that the use of this non-GAAP financial measure provides an additional tool for investors to use in evaluating the post business combination company. This non-GAAP measure should not be considered in isolation from, or as an alternative to, the financial measures determined in accordance with GAAP. A reconciliation of Net debt to the most directly comparable GAAP measure is included in this Presentation. Participants in the Solicitation of Proxies This Presentation is not a solicitation of a proxy from any investor or security holder. Lionheart, Securities Matters, and their respective directors, executive officers and other members of their management and employees, may, under SEC rules, be deemed to be participants in the solicitation of proxies of Lionheart's stockholders in connection with the proposed business combination. Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of Lionheart's directors and executive officers in Lionheart's Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on April 14, 2022, and other reports filed with the SEC. Additional information regarding the participants will also be included in the Form F-4 that includes the proxy statement/prospectus, when it becomes available. When available, these documents can be obtained free of charge from the sources indicated above. EQUILIBRIUM ECONOMY Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. lOr² INTELLIGENCE ON THINGS LO 5#6Disclaimer US (cont'd) Disclaimer and Cautionary Note Regarding Forward-Looking Statements This Presentation includes “forward-looking statements” within the meaning of the “safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "forecast," "seek," "target," "anticipate," "believe," "expect," "estimate," "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends that are not statements of historical matters. Such forward-looking statements with respect to revenues, earnings, performance, strategies, the market, prospects and other aspects of the businesses of Security Matters, Lionheart or a combined company after completion of the proposed business combination are based on current expectations that are subject to risks and uncertainties. A number of factors, many of which are outside of the control of Security Matters and Lionheart, could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties, including (i) changes in domestic and foreign business, market, financial, political and legal conditions; (ii) the inability of the Security Matters and Lionheart to successfully or timely consummate the proposed business combination, including the risk that any required regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that could adversely affect the combined company or the expected benefits of the proposed business combination or that the approval of the stockholders of Lionheart or equity holders of Security Matters is not obtained; (iii) failure to realize the anticipated benefits of the proposed business combination; (iv) Security Matters' limited operating history; (v) Security Matters' ability to grow and manage its growth effectively; (vi) Security Matters' ability to execute its business plan; (vii) Security Matters' estimates of the size of the markets for its products; (viii) the rate and degree of market acceptance of Security Matters' products; (ix) Security Matters' ability to identify and integrate acquisitions; (x) Security Matters' future investments in its technology and operations; (xi) potential litigation involving Lionheart or Security Matters or the validity or enforceability of Security Matters' intellectual property; (xii) risks relating to the uncertainty of the projected financial information with respect to Security Matters; (xiii) the effects of competition on Security Matters' business; (xiv) developments and changes in laws and regulations; (xv) the impact of significant investigative, regulatory or legal proceedings; (xvi) general economic and market conditions impacting demand for Security Matters' products and services; (xvii) the amount of redemption requests made by Lionheart's public stockholders; (xviii) the amount cash available following any redemptions by Lionheart stockholders; (xix) the ability to meet Nasdaq's listing standards following the consummation of the proposed transaction; (xx) the ability of Lionheart or the combined company to issue equity or equity-linked securities in connection with the proposed business combination or in the future; and (xxi) those factors discussed in Lionheart's Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed on April 14, 2022, under the heading "Risk Factors," and other documents of Lionheart filed, or to be filed, with the Securities and Exchange Commission ("SEC"). SECURITY MATTERS If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that neither Lionheart nor Security Matters presently know or that Lionheart and Security Matters currently believe are immaterial that could also cause actual results to differ materially from those contained in the forward-looking statements. In addition, forward-looking statements reflect Lionheart's and Security Matters' expectations, plans or forecasts or future events and views as of the date of this Presentation. Lionheart and Security Matters anticipate that subsequent events and developments will cause Lionheart's and Security Matters' assessments to change. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Security Matters and Lionheart undertake no commitment to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. EQUILIBRIUM ECONOMY Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. Or² INTELLIGENCE ON THINGS 6#7Lionheart III Overview Sponsor Background Lionheart III Corp is a $125 million SPAC led by the founder/CEO and executives of Lionheart Capital ● ● Lionheart Capital is a Miami-based diversified investment firm focused on building shareholder value in high-growth companies Proven SPAC Sponsor opes ↑ acquisition corp. BURGERFI BFI | Nasdaq Listed (Closed) EQUILIBRIUM ECONOMY LIONHEART II CORP LIONHEART III CORP MSP RECOVERY DISCOVER. RECOVER. MSPR | Nasdaq Listed (Closed) Lionheart Capital Track Record 1 SECURITY MATTERS LIONHEART CAPITAL A multi-dimensional investment firm focused on value growth investments in the public markets Success taking over OPES Acquisition Corp. and launching Lionheart Acquisition Corp II which closed a business combination with MSP Recovery in May 2022 Best-in-class global relationships with next-generation technology companies and disruptive tech-enabled companies Proven record of value creation for under-appreciated assets. Transformed an obsolete waterfront hospital to The Ritz Carlton Residences in Miami Beach Proven skillset in transitioning companies from private to public while maintaining a flexible industry focus World-class management team and board of directors with multi-industry operating and investing experience Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. ar² INTELLIGENCE ON THINGS 7#8Lionheart III Corp Leadership The Lionheart III Corp ("LION") management team collectively has 80+ years of operating and investing experience across multiple sectors and asset classes . . Ophir has over 28 years of proven transaction, operating and investing experience. He is the Founder and CEO of Lionheart Capital LLC ("Lionheart Capital"), a diversified investment firm focused on value and growth investments in private and public markets Ophir was the Chairman and CEO of Lionheart Acquisition Corp II ("LCAP") which completed a business combination valued at $32.6 billion with MSP Recovery. Ophir serves as Executive Chairman of BurgerFi (Nasdaq: BFI), which Ophir's prior SPAC merged with and took public Ophir's other major transactions include: the purchase of Cigarette Racing Team and the development The Ritz-Carlton Residences in Miami Beach and Singer Island in Palm Beach Ophir Sternberg Chairman and CEO Ophir founded Out of the Box Ventures, which acquires and repositions distressed retail properties throughout the U.S. Prior SPAC experience: Chairman and CEO of Opes Acquisition Corp. ("Opes") and now Executive Chairman of BurgerFi, and a Director of MSP Recovery Prior current board experience: Opes, BurgerFi, LCAP, MSP Recovery LIONHEART ACQUISITION CORP LIONHEART CAPITAL Independent Directors EQUILIBRIUM ECONOMY opes acquisition corp. MSP RECOVERY Bitcoyes ACOR OUT BOX VENTURES Roger Meltzer, Esq. BFI | Nasdaq Listed LCAP | Nasdaq Listed LIONHEART ACQUISITION CORP Haymaker Acquisition Corp. DLA PIPER Cahill Paul Rapisarda CFO Paul brings more than 25 years of C-suite and investment banking experience. As CFO, he is responsible for overseeing all corporate finance functions including financial reporting, treasury and cash management, regulatory and SEC compliance matters and investor relations Since 2019, Paul has served as CFO of LION, LCAP, Lionheart Capital and Out of the Box Ventures Prior to joining Lionheart Capital, Paul served as CFO of Etrion Corp., a dual-listed (TSX / STO) solar energy company and EVP of Commercial Development for Atlantic Power (NYSE:AT), a dual listed (TSX / NYSE) independent power company. At Atlantic Power, Paul played a principal role in the $1.8 billion merger with Capital Power Income L.P. Prior SPAC experience: Paul previously served on the Board of Directors of Opes and also served as the CFO of LCAP Prior / current board experience: Opes (audit committee) LIONHEART ACQUISITION CORP LIONHEART CAPITAL James Anderson OUT BOX VENTURES opes acquisition corp. LIONHEART ACQUISITION CORP LCAP | Nasdaq Listed opes acquisition corp. LCAP | Nasdaq Listed Atlantic Power Corporation etrion Thomas Byrne Faquiry brings more than 25 years of investing and operating experience Faquiry has served as COO of LION since 2021. He leads the Mergers and Acquisitions and Corporate Strategy divisions, overseeing daily administrative and business operations at Lionheart Capital Faquiry also serves as Chief of Mergers and Acquisitions and Corporate Strategy at BurgerFi Faquiry has held positions as an executive, board member and observer at various public and private corporations within the U.S. and internationally. He also served on the board of several non-profit organizations and educational institutions Faquiry graduated from the Wharton School at the University of Pennsylvania Faquiry Diaz Cala COO Prior SPAC experience: Faquiry currently serves as COO of LION and served as COO of LCAP LIONHEART ACQUISITION CORP LCAP | Nasdaq Listed Kaptyn. SECURITY MATTERS LCAP | Nasdaq Listed LIONHEART ACQUISITION CORP Jamba Juice. Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. BFI Nasdaq Listed Thomas Hawkins LIONHEART ACQUISITION CORP LCAP | Nasdaq Listed JUMPTUIT Tomomcu's Intelligence Today or² INTELLIGENCE ON THINGS MEDNAX HEALTH SOLUTIONS PARTNER 8#9Transaction Overview Overview Lionheart III Corp ("LION") has agreed to acquire Security Matters Limited ("SMX") at an implied pre-money equity valuation of $200 million Lionheart III Corp is a publicly-listed special purpose acquisition vehicle with $126.3 million in trust Expected transaction close is Q4 2022 Illustrative Pro Forma Ownership (¹) ■ LION Shareholders - LION Sponsor ■ SMX Existing Shareholders EQUILIBRIUM ECONOMY 55.5% 34.7% 9.8% Illustrative Sources & Uses ($m) Sources LION Cash in Trust (²) LION Sponsor (3) SMX Rollover Equity Total Sources Uses LION Sponsor(2) SMX Cash to Balance Sheet(4) SMX Rollover Equity Transaction Expenses (5) Total Uses Illustrative Pro Forma Valuation ($m) Valuation Summary Pro Forma Equity Value Plus: Net Debt (4) SECURITY MATTERS Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. $126.3 6.0 200.0 $332.3 $6.0 115.9 200.0 10.4 $332.3 $360.3 ar² INTELLIGENCE ON THINGS Pro Forma Enterprise Value (¹) Pro Forma Ownership on a non-fully diluted basis at $10.00 per share (2) LION Cash in Trust assumes no redemptions by LION Shareholders. Recent SPAC transactions have been characterized by high redemption rates. (3) LION Sponsor includes 125,000 private placement units purchased by the IPO underwriter (4) SMX Cash to Balance Sheet (Net Debt) assumes $126.3m LION Cash in Trust minus $10.4m Transaction Expenses (5) Transaction Expenses include deferred IPO underwriting fee, M&A fee and an estimated $5m for other transaction expenses; subject to change 9 (115.9) $244.4#10EQUILIBRIUM ECONOMY SECURITY MATTERS SMX gives materials memory lar² THELENCE ON THIS 10#11The System Within Within your business lies a world of potential; potential that can be realized by something so miniscule you won't even know it's there. An invisible solution that can turn your business into an intelligent ecosystem. Building an inter-connected network. Putting sustainability at the heart of what you do. By empowering you at a molecular level, we'll help your business drive change on a greater scale. Because inside your operation lies the power to transform tomorrow. SMX. The system within. The System Within Value Proposition Sustainably-run businesses can be more effective businesses, that want to make better choices for their company and the planet. SMX uses technology designed to turn businesses into ecosystems that work as a united whole, unlike less adaptable technologies and platforms that can't deliver the system change required. EQUILIBRIUM ECONOMY SECURITY MATTERS Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. lOr² INTELLIGENCE ON THINGS 11#12SMX Origin story 'From in the dark to informed intelligence' There are moments the ground shifts beneath our feet. Suddenly, the entire global landscape changes, and business can no longer operate in the way it did before. Today, we are experiencing that change. The world is demanding greater and greater transparency, efficiency and resilience - a call to do things better; a challenge loaded with so much exciting possibility. SECURITY MATTERS That is why SMX decided to find a new way to unlock knowledge – to help counter the lack of transparency and create a system where bad actors have nowhere to hide. With 'augmented materials,' you can know the granular detail of a material its provenance, its purity, its integrity. That way, transparency can be built-in, and industry can gain the intelligence it needs to work in smarter and more productive ways - linking parts of the value chain and enabling use, reuse and reuse again to realize the potential of materials. It's a system designed for the 21st century economy. A system that is highly innovative and can empower businesses to build the real-world circular economy. A system that can help change the way we operate from the inside out. The system within. EQUILIBRIUM ECONOMY Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. OT² INTELLIGENCE ON THINGS 12#13SMX 4 Key Benefits EQUILIBRIUM ECONOMY SECURITY MATTERS Multiple-stages and multiple-loops traceability: The resilience of the SMX marker and block-chain platform is designed to ensure that the data is never compromised or lost, enabling more accurate and reliable traceability as the material is recycled/reused multiple times Enhanced data flow and circularity: The SMX marker enables you to store data at a molecular level within products and materials, allowing for increased transparency of marked content, for greater granularity and ease of recycling Exciting knowledge gathering potential: The SMX reader is designed to enable easy data gathering at any point within the supply chain, without affecting the product or material, eliminate blind spots, and provide the complete picture Multiple application possibilities: Each SMX marker is unique and can be applied to any material, providing access to a large number of markers and a system with greater potential for different applications Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. OT² INTELLIGENCE ON THINGS 13#14Our Vision ● ● ● ● ● ● e ● EQUILIBRIUM ECONOMY A SECURITY MATTERS To unlock the way global business will operate tomorrow, by enabling a real-world circular economy. We can help make the transition to a circular economy positive, productive and profitable for everyone in the value chain - and for the planet. 66 Our goal is to be the global standard & best practice for recording & connecting all physical goods with a digital twin on the blockchain Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. 99 or²2 INTELLIGENCE ON THINGS 14#15What is the 'Circular Economy'? The circular economy is a new way of looking at the relationships between markets, customers and natural resources. Move away from the linear economy... Enable the Circular Economy... EQUILIBRIUM ECONOMY TAKE MAKE MAKE RECYCLE DISPOSE USE AR SECURITY MATTERS The circular economy moves away from the traditional "take- make- dispose" economic model to one that is regenerative by design, with the goal of retaining as much value as possible from resources, products, parts and materials to create a system that allows for longer life, optimal reuse, refurbishment, remanufacturing and recycling. Companies who implement the circular economy concentrate on rethinking products and services using principles based on durability, renewability, reuse, repair, replacement, upgrades, refurbishment and reduced material use. By applying these principles, companies can design out waste, increase resource productivity and decouple growth from natural resource consumption. This is the biggest opportunity to transform production and consumption since the First Industrial Revolution 250 years ago. By unleashing circular innovation, we can boost the global economy's resilience, support people and communities around the world and help fulfil the Paris Agreement and the UN Sustainable Development Goals. - World Business Council for Sustainable Development, CEO Guide to the Circular Economy,2017 Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. or²2 INTELLIGENCE ON THINGS 15#16Circular closed loop economy EQUILIBRIUM ECONOMY Recycle Make Use SECURITY MATTERS The core challenge of climate change and protecting the environment is not only limited to carbon emissions or coal, but about reusing products again, so we can reduce the amount of raw materials we need. It is uneconomical and inefficient to use 100% new materials in every product you manufacture. By reclaiming & recycling the materials from unwanted products at the end of their lifecycle, it can be more efficient and economical for the business and the industry as a whole. Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. Or² INTELLIGENCE ON THINGS 16#17EQUILIBRIUM ECONOMY SECURITY MATTERS SMX Technology Innovation lar² THELENCE ON THIS 17#18To be a leading Impact ESG Investment High Impact Potential for Positive Change SMX's technology is an enabler for global companies across various industries to transition more successfully to a sustainable circular economy. By adopting SMX's technology, they can be able to tangibly measure and track the raw material from origination, through the supply chain and at the end of life where the amount of material recycled/reused from that product item can be measured and as well as the number of times that specific material/item has been recycled/reused. SECURITY MATTERS This gives brands/companies the option and ability to record this on SMX's digital blockchain platform to more accurately claim carbon & plastic credits that are tangibly linked to a physical recycled commodity - potentially resulting in a valuable tradeable asset. - The overall transition to the Circular Economy, by incentivizing players along the value chain, can be made by commoditizing and increasing the value of the recycled materials - motivating the circular economy via the financial markets. EQUILIBRIUM ECONOMY SMX believes it is the only technology that has tangibly demonstrated a full transparent circularity successfully. Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. Or² INTELLIGENCE ON THINGS 18#19To be a leading Impact ESG Investment Market Applications and Appeal SMX's technology can be applied at a molecular level on solids, liquids or gas at multiple points in the supply chain as a drop in solution. This enables SMX to work strategically in the following segmented markets, across a variety of materials. Segmented Markets Circular Economy / Supply Chain Ethical Mining & Raw Minerals Electronics & Components Fashion & Cosmetics Sustainability & Food Security Materials EQUILIBRIUM ECONOMY Plastics, Rubber Gold, Diamonds, Timber/Lumber, Cement, Ore & Rare Earths Electronics & Silicon Wafer Leather, Organic Silk, Organic Cotton, Wool, Vegan Leather, Polyester, EVA, TPU, ABX, PET Wine, Animal Feed, Palm Oil, Seeds SMX's potential for positive ESG impact is exciting, and its ability to more accurately and transparently measure has been proven. SECURITY MATTERS Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. Or² INTELLIGENCE ON THINGS 19#20Enabling Technology to Successfully Transition to a Circular Economy As global businesses faces new and complex challenges relating to carbon neutrality and meeting new governmental and regional regulations and standards, SMX is able to offer players along the value chain access to its marking, tracking, measuring and digital platform technology to transition more successfully to a low-carbon economy. SMX is a key technological tool in enabling brands/companies to: Use a transparent, measurable, tangible technology that can more accurately identify the origins and material composition of raw materials within the finished consumer product and its packaging, enabling it to re-enter the economy for recycling/reuse. Be better positioned to create a leading industry standard relating to carbon neutrality, ethics and the ability to meet new government regulations and standards. Adopt a transparent value chain stakeholder compliance approach. ● EQUILIBRIUM ECONOMY Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. SECURITY MATTERS lOr² INTELLIGENCE ON THINGS 20#21SMX Tech Solution Benefits BLOCKCHAIN PLATFORM (optional) Gives the ability to detect diversion of products and verify Product Authenticity in real time without destroying the item at multiple points in the supply chain and at retail level. COMPLIANCE & LIABILITY Enabler of compliance for ESG regulations, international customs and industry quality regulation. Markers are compatible with food regulation. EQUILIBRIUM ECONOMY CIRCULAR ECONOMY The raw material is marked and recorded on blockchain to enable more accurate identification for recycling and allows the company to lodge a credible carbon credit claim. E SECURITY MATTERS $ SUPPLY CHAIN INTEGRITY Greater protection from Product Diversion/Loss or Dilution or Substitution MORE COMPREHENSIVE TRACEABILITY SECURITY MATTERS Greater traceability of product origin (i.e. Authenticate Ethical Sources & Origination) and supply chain history. Ability to read product's history by scanning the item. In addition to date & origin and material composition, it can identify if any parts have been changed or repaired (where & when). Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. or² 21 INTELLIGENCE ON THINGS#22SMX's view of its Technology 1 Innovative 2 3 EQUILIBRIUM ECONOMY Sustainable Essential Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. SECURITY MATTERS OT² INTELLIGENCE ON THINGS 22#231. Innovative Technology for 3 product lifecycles ● ● ● Raw material Production Customer Production Customer Recycling/ Reuse EQUILIBRIUM ECONOMY охо Security Matters believes permanent marking of any object (either solid, liquid or gas) makes the technology unique. Security Matters offers an advanced next generation technology that can invisibly mark and store multiple data at a molecular level, in solids, liquids or gas. The code is created by a combination of molecules detected by an innovative energy band. Marker embedded in or on materials and products can be read in real time via easy-to-use portable hand- held scanner and is protected by a blockchain ledger. Security Matters believes its technology is difficult to replicate by any competitors and is superior to alternative forms of supply chain security. EQUILIBRIUM ECONOMY SECURITY MATTERS Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. OT² INTELLIGENCE ON THINGS 23#242. Sustainable Accountability Transparency & ownership of lifecycle data from origins of raw materials to key production phases & end of product life - recycling. ● A mine-to-marketplace ethical supply chain assurance & transparency technological platform that parties along the value chain can utilize to monitor the lifecycle and origins in real time. Enables parties to authenticate and provide proof of quality, quantity and origin of materials for credible ESG reporting for stakeholders, insurance, trading platforms, logistics, financing, international customs and industry regulations. EQUILIBRIUM ECONOMY Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. SECURITY MATTERS OT² INTELLIGENCE ON THINGS 24#253. Essential For Circular Closed Loop Economy to Function & Operate By being able to create a digital twin for physical objects, SMX enables different players in the value chain of production to create a global ledger of physical goods which can result in new business and revenue streams. SMX can help form a new revenue model and business stream for companies balancing the use of both recycled and virgin raw materials during production. EQUILIBRIUM ECONOMY Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. SECURITY MATTERS OT² INTELLIGENCE ON THINGS 25#26End to End Technology Solution for Circularity SMX is an environmentally sustainable technology that can more accurately identify the origins and material composition of raw materials within the finished consumer product and its packaging, enabling it to re-enter the economy for recycling/reuse. • Mark any object either solid, liquid or gas Apply marks to multiple layers Combination of 500,000+ marker molecules to help make each mark unique ● ● A chemical-based hidden marker system ● Designed not to change the composition, quality and characteristics such as colour, weight, taste and smell of the material. EQUILIBRIUM ECONOMY ● ● llä A reader to identify these codes Patented sensitive reader receives response signal from marker Ability to read the data embedded in the item within seconds without having to destroy the product or send the item to a special lab for testing. ● ● ● SUP SECURITY MATTERS 食 A blockchain record to store and verify ownership data Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. Records datasets through the supply chain Transfer of ownership Enables proof of authenticity and quality assurance Visibility of supply chain movements Or² INTELLIGENCE ON THINGS 26#27The World Business Council for Sustainable Development - Member wbcsd The World Business Council for Sustainable Development (WBCSD) is a global, CEO-led organization of over 200 leading businesses working together to accelerate the transition to a sustainable world. 66 EQUILIBRIUM ECONOMY SECURITY MATTERS WBCSD is delighted to welcome Security Matters as our newest member. There is a huge potential for this kind of technology to revolutionize industries including fashion, electronics, agriculture, gold and precious stones. We look forward to working with Security Matters to help advance our shared goals" 99 Peter Bakker, President and CEO of WBCSD, 10 June 2020 Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. lOr² INTELLIGENCE ON THINGS 27#28EQUILIBRIUM ECONOMY SECURITY MATTERS SMX Technical Objectives and Challenges 6 lar² THELENCE ON THIS 28#29A Significant & Growing Market US$4.5 Trillion The circular economy is a US$4.5 trillion opportunity, presenting potential for global economic growth, accelerating society towards a sustainable future. US$60.7 Billion EQUILIBRIUM ECONOMY The Global Plastic Recycling Market is estimated to reach US $60.7bn by 2025 םים 815 US$500 Billion Global sales of counterfeit and pirated goods are estimated at a value of US$500bn a year Sources: McKinsey surveys of global Supply Chain leaders (May 15 - May 22, 2020, N=60; U.S. Intellectual Property and Counterfeit Goods- Landscape Review of Existing/Emerging Research; OECD ESG Investing: Practices, Progress and Challenges; environmental leader; analytics insights. https://www.fashionrevolution.org/. https://www.prnewswire.com/news-releases/global-plastic-recycling-market-report-2020-301222208.html. SECURITY MATTERS Global textile waste is expected to reach 148 million tons annually by 2030 Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. |||^||||| 148m Tonnes lor² INTELLIGENCE ON THINGS 29#30The Shift has Already Begun Movement towards the digital economy 50% of the World's Largest Industrial Companies Will rely on digital twins innovative technology to gain an added insight into their products, assets, processes, operations. Continued fight against counterfeit EQUILIBRIUM ECONOMY 93% of Supply Chain Leaders >50% )( of Brand Owners Shift from linear to circular economies Plan to increase the level of resilience across their supply chain as a result of COVID-19. Are committing to establishing circular value chains. Source: McKinsey surveys of global Supply Chain leaders (May 15 - May 22, 2020, N=60; U.S. Intellectual Property and Counterfeit Goods- Landscape Review of Existing/Emerging Research; OECD ESG Investing: Practices, Progress and Challenges; environmental leader; analytics insights SECURITY MATTERS Increasing ESG investment and awareness Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. 33% of the US $50 Trillion in Assets Under professional management representing ESG investments. Or² INTELLIGENCE ON THINGS 30#31The Shift has Already Begun Concept Examples EQUILIBRIUM ECONOMY Product Portfolio Sustainable offering Make product offering more sustainable and encourage sustainable choice of customers Sustainability score Product- oriented Service products to extend product life and recycling of materials Repair/ remanufacturing ↑↓ Rental Use- oriented Business Model Offer the use of products while maintaining ownership to reduce excess production Sustainable solution SECURITY MATTERS Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. Solution- oriented Offer ecosystem around "sustainable solutions" to help customers come more sustainable Sustainable offering lOr² INTELLIGENCE ON THINGS 31#32EQUILIBRIUM ECONOMY SECURITY MATTERS SMX Market Opportunity 6 lar² THELENCE ON THIS 32#33SMX Tech and Blockchain Benefits For Ethical & ESG Compliance For Raw Commodities, Precious Metals & Diamonds Transaction transparency Authentication Blockchain supply chain management Sustainability & Liability Monetize benefits of the Marker in a closed loop economy EQUILIBRIUM ECONOMY ● ● ● ● ● ● Linking of physical mineral with its digital twin • More secure digital records ● Greater transparency between supply chain stakeholders • Blockchain ledger ● Help reduce credit risk and compliance burden Help expedite funding & credit lines and reduce cost of funds to miners ● ● Enable more accurate reporting of quantity and quality of mineral being mined and refined to financiers, traders and insurance Transparency and assurance based on science and technology - not paper based Help detect fraud and adulteration on the spot Prevent unauthorised materials from entering production chain Source provenance - identification and verification Trace back at end-of-life for recycling Trace back at misuse, defect or accident SECURITY MATTERS Help de-risk & lower cost of inventory financing models Introduce a globally recognized industry standard for ‘grading' based on quality and traceability where it can be priced and traded on the open market accordingly Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. a² INTELLIGENCE ON THINGS 33#34SMX Tech Application 1KILO 9999 PERTH IN EQUILIBRIUM ECONOMY 3182405 ce 1KILO 9999 PERIM 3182402 423 PERTH Gold (trueGold 1KILO 9999 MINT 31824 318 Paifanan IKILO PERTH IND RESTRAREA SECURITY MATTERS lar² THERENCE THEY 3182408 34#35(trucGold) Partnership with The Perth Mint EQUILIBRIUM ECONOMY GUST S ALMA MINT SECURITY MATTERS "This is a particularly significant development given the increasing focus on Environmental, Social and Governance (ESG) practices across the world pertaining to the gold supply chain. This game changing technology will report the origin of the gold and how the metal moves through the entire production and distribution process. This complete transparency will instil even greater trust in a commodity which already provides the ultimate refuge during times of economic and geopolitical turmoil." Richard Hayes, CEO - The Perth Mint, 5 February 2020 IKILO 9999 a² 35 DIAREPANTO DOS TRES#36trueGold ● ESG & Ethical Compliance for the Gold Industry TRANSPARENCY FROM MINE TO RECYCLING AND BACK TO REFINING. An ethical gold supply chain assurance solution that spans the gold value chain from mine to refinery to terminal market through recycling and back again to refinery. To better enable the parties in the Gold value chain to authenticate and provide proof of quality, quantity and origin of gold for credible ESG reporting for stakeholders, insurance, trading platforms, logistics, financing, international and industry regulations. customs To create a digital twin that is recorded on a digital blockchain platform for physical products - enabling different players in the Gold value chain of production to create a global ledger of physical goods. EQUILIBRIUM ECONOMY To enhance, compliment & promote the current ESG frameworks provided by WGC (Responsible Gold Mining Principles) and LBMA (Responsible Sourcing Programme), by offering its members a technology and blockchain platform that can promote and help drive integrity, anti-counterfeiting, corporate transparency, accountability and sustainability. Mine • Map (CREATE) between Doré bars a unique ID to SMX tracer at Mine site in Gold Room Doré Bars • Verify Authenticity (SCAN) • Record Doré bars leaving mine & being collected by logistics Refinery G Buy • Verify Authenticity (SCAN) • Mark Bullion Cast & Minted Bars & Coins at Refinery Trade Bullion Trade Record Bullion Cast & Minted Bars & Coins leaving Refinery & being collected by logistics Sell • Verify Blockchain Cloud Authenticity (SCAN) Record Buy/Sell & logistic movements Manufacturing Products using Gold • Map (CREATE) between Gold product with unique ID to SMX tracer 2000000 o!!!!!!!! ******** Gold Products Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. SECURITY MATTERS • Verify Authenticity (SCAN) • Record logistic movements Retail & Distribution of Gold products • Verify Authenticity (SCAN) • Map product serial number to tracer ID Report on specific unique product ID containing process points and origination Or² INTELLIGENCE ON THINGS 36#37SMX Tech Application EQUILIBRIUM ECONOMY Fashion Sustainability Competence Centre SECURITY MATTERS OT² FELIGENCECH TH#38Enabling Fashion Brands to Meet Carbon Neutrality & ESG Targets SMX officially opened a Fashion Sustainability Competence Centre to provide fashion brands more transparent, cost-effective and efficient access to SMX’s ‘plug & play' proprietary technology that has been designed for use within the fast, high volume and low-price fashion industry. ● ● SECURITY MATTERS SMX's innovative technology and digital twin blockchain platform 3.0 that can enable participating fashion brands to recycle their own merchandise (clothes, shoes, accessories including sunglasses) back into higher quality materials and merchandise, is ready for commercial scale operations. SMX can work with fashion brands by building and adapting the technology to their production facilities. SMX Blockchain provides a more transparent, cost efficient and tangible platform for upstream and downstream value chain players to co-ordinate, share data and evolve production methods from a linear model (take-make- dispose) to a circular model (take- reuse/make - recycle). SMX's Equilibrium Circular Economy business model can reduce the amount of raw materials required and amount of waste whilst meeting the financial goals and ESG demands of the market and consumers, which is vital to future-proof the fashion industry. It is envisioned that the SMX technology can allow US, UK and EU companies to comply with new regulations on carbon emission and sustainability including the EU Green Deal. SMX's technology is applicable across a range of materials including wool, organic cotton, organic silk, leather, EVA, TPU, ABS, PET, Vegan Leather, Polyester and its applications encompasses shoes, trainers, leather goods, clothes, sunglasses and accessories. EQUILIBRIUM ECONOMY Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. ar² INTELLIGENCE ON THINGS 38#39The Fashion Equilibrium Circular Economy Enabling Conscious Fashion Enabling Circular Economy Production Values EQUILIBRIUM ECONOMY Raw material collection 1 Natural Source Marking during processing SMX Marking A Petrochemical feedstock Or / and Synthetic Source Marking during processing SMX Marking B Marked Fibers Marked Fibers www 2 3 9 Marked Yarn Marked Blend S Recycled marked Fibers Secondary market Marked Colored Yarn lar² INTELLIGENCE ON THINGS Sorting by marking 8 Marked Fabrics Marked Products SAA Waste collection Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. SECURITY MATTERS 6 Or² 39 INTELLIGENCE ON THINGS#40SMX Tech Application S We FF 4482 EQUILIBRIUM ECONOMY H Electronics L wbcsd PAYACH LE D 1115 Governmental Cyber Authorities & Agencies Y 232333 SECURITY MATTERS a² INTELIDENCE ON THINGS 40#41Circular Electronics Partnership (CEP) ● ● wbcsd The World Business Council for Sustainable Development (WBCSD) and SMX launched a pilot project for Circular Electronic Manufacturing Overview Invited by the WBCSD, SMX joined the first private sector alliance of top electronic brands and its founding partners of the Circular Electronics Partnership (CEP). The members of the CEP include Dell Technologies, Microsoft, Cisco, Google, Vodafone, Lanxess, Sims Lifecycle Services, Glencore, KPMG International and Closing the Loop, among others. The Circular Electronic Manufacturing pilot project can play a tangible and practical role in CEP's roadmap for the electronic brands and manufacturers to transition more successfully to a circular economy. SECURITY MATTERS The primary objective of the pilot project is to demonstrate how SMX's technology can mark, track & trace EEE (Electronic & Electrical Equipment) along the supply chain, can enable circularity over materials and reduce the use of raw materials. Anticipated Benefits ✓ Transforming from liner to circular economy ✓ Reclaim waste by brand / application ✓ Maximizing branded materials' specs by moving to multiply cycle use of material EQUILIBRIUM ECONOMY ✓Claiming additional carbon credit and preparing for plastic credit ✓ Compliance with future ESG regulations ✓ To be able to detect in real time and in a non-intrusive manner if any substitution or loss has occurred. Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. lor² INTELLIGENCE ON THINGS 41#42Traceability via Blockchain EQUILIBRIUM ECONOMY Pu INTELLIGENCE ON THINGS Blockchain ☆ & Verify 1- Linking 3 Com product digital Verify 3 - At barcode to PCB the OEM and its components Or Verify 2 - At the warehouse पुग SECURITY MATTERS Verify 4 - At the customer Proprietary to Security Matters, and protected under Federal US, AU and EU IP laws and regulations, as are any results (physical or intellectual property) of any work done. or² 42 INTELLIGENCE ON THINGS#43SECURITY MATTERS T. +972 8 630 6336 (ISR) E. [email protected] lar² TITHELESENCE ON IHNEN EQUILIBRIUM ECONOMY 43