#1tuya Presentation Second Quarter 2022 August 2022#2Disclaimer This presentation and the accompanying oral presentation (the "Presentation") have been prepared by Tuya Inc. (the "Company") solely for informational purposes and have not been independently verified. No representations, warranties or undertakings, express or implied, are made by the Company or any of its affiliates, advisers or representatives as to, and no reliance should be placed upon, the accuracy, fairness, completeness or correctness of the information or opinions presented or contained in this Presentation. Neither of the Company nor any of its affiliates, advisers, or representatives accept any responsibility whatsoever (in negligence or otherwise) for any loss howsoever arising from any information presented or contained in this Presentation or otherwise arising in connection with the Presentation. The information presented or contained in this Presentation is subject to change without notice and its accuracy is not guaranteed. Information in this Presentation including, among others, any statements regarding Tuya's market position, customer data and other metrics, is based on data and analyses from various sources as of the date of this Presentation, unless otherwise indicated. This Presentation does not constitute an offer to sell or issue or an invitation to purchase or subscribe to any securities of the Company for sale in the United States or anywhere else. No securities of the Company may be sold in the United States without registration with the United States Securities and Exchange Commission or an exemption from such registration pursuant to the Securities Act of 1933, as amended (the "Securities Act") and the rules and regulations thereunder. No part of this Presentation shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Specifically, This Presentation does not constitute a "prospectus" within the meaning of the Securities Act. This presentation does not contain all relevant information relating to the Company or its securities, particularly with respect to the risks and special considerations involved with an investment in the securities of the Company. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the SEC. This Presentation contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "anticipate", "target", "aim", "estimate", "intend", "plan", "believe", "potential", "continue", "is/are likely to" or other similar expressions. All information provided in this Presentation is as of the date of this Presentation, and the Company does not undertake any duty to update such information except as required under applicable law. In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP operating expenses, non-GAAP loss from operations (including non-GAAP operating margin), non-GAAP net loss (including non-GAAP net margin), and non-GAAP basic and diluted net loss per ADS, as a supplemental measure to review and assess its operating performance. The presentation of the non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). The Company defines non-GAAP measures by measures excluding the impact of share-based compensation expenses. The Company presents the non-GAAP financial measures because they are used by the management to evaluate the operating performance and formulate business plans. The Company also believes that the use of the non-GAAP measures facilitates investors' assessment of its operating performance. Non-GAAP measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools. One of the key limitations of using aforementioned non-GAAP measures is that it does not reflect all items of expenses that affect the Company's operations. Share-based compensation expenses have been and may continue to be incurred in the business and are not reflected in the presentation of non-GAAP measures. Further, the non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measures, all of which should be considered when evaluating the Company's performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure. Reconciliations of Tuya's non-GAAP financial measures to the most comparable U.S. GAAP measures are included at the end of this Presentation. Unless otherwise indicated, all references in this Presentation to "Tuya", "we", "our", "us", or similar terms refer to Tuya Inc. and its subsidiaries and, in the context of describing its operations and consolidated financial information, also include our variable interest entity in the PRC. 1#3tuga Build an lot Developer Ecosystem Enable Everything to Be Smart#4Q2'22 Updates#5Revenue Updates by Segment Revenue breakdown for the quarter (USD'M) Total Revenue $84.7 Q2'21 YoY -26% Overall $62.5 Q2'22 $76.9 Q2'21 lot PaaS YoY -38% $47.6 Q2'22 SaaS and Others Core Business $3.4 Q2'21 YoY +114% $7.2 Q2'22 Smart Device Distribution $4.4 Q2'21 YoY +77% $7.8 Q2'22 Non-Core business tuya 4#6PaaS Business Customers Movement - Premium loT PaaS customers¹ Contributed ~82% of loT PaaS revenue in Q2'22 133 285 267 Q2'20 Q2'21 Q2'22 *Decrease in PCs represents that some customers fell below the PC revenue contribution threshold (i.e., USD 100K per 12- month), which does not indicate the loss of customers. Total loT PaaS customers we served in Q2'22 Number of customers 1,200 Q2'20 2,600 Q2'21 2,800 Q2'22 1. Tuya defines a premium loT PaaS customer as a customer as of a given date that contributed more than US$100,000 of loT PaaS revenue during the immediately preceding 12-month period. tuya 5 сл#7Full Line Products Underperformed in Q2′22 Due to Weakened Consumer Demand and Inventory Backlog Category YoY% change Consumer product features Mismatch btw supply and demand Lighting & Electricals 416 " ~3x selling price variance Consumer Security & Sensors Smart penetration rate over 80%+ Big & Small Appliances - 1.05 to 1.10x selling price variance Downstream inventory backlog issue Note: Icons are for illustrative purpose only. The penetration rate is the Company's estimation based on various public sources. Others Niche and emerging, susceptible to inflations Commercial & Industrial - N/A - - N/A - tuya 6#8Strong Revenue Growth in SaaS and Others SaaS and Others revenue (USD'M) $0.7 Q1'20 $1.2 $1.8 $2.4 $2.3 $3.4 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 $5.6 $7.3 $5.8 Q3'21 Q4'21 Q1'22 $7.2 Q2'22 + 114% Q2 SaaS and Others Revenue Y/Y Growth tuya 7#9Industry SaaS Updates ● 919 ● ● Commercial Lighting/Building SaaS ● Progress # of Newly obtained brands # of Newly obtained projects # of Newly accessed devices More functions: APTIV. Case Study Saving 900 kwh electricity daily A Global Leading Mobile Electronics and Automotive Systems Supplier. Upcoming 70%+ energy saving efficiency Carbon Calculation Theoretical Energy Consumption Analysis Event Central Hub China 罵 Optimize with more cost-effective functions R 锐嘉科控股 RGK HOLDINGS Hotel/Apartment CZBJ International Scale our coverage with 1,000+ new rooms Customers Jurny. Inox Engineered Beautifully™ Focusing on industry-leading service providers and hotel groups, improve our product offerings. LANK NG 蓝箭电控 A Large High-voltage Electrical Control Equipment Supplier in China ল (9) SaaS Industrial SaaS Safety remote device monitoring ~10% effective power saving ANANDA Industry Expert of Two-wheel Electric Bicycle Drive System in China -50% after-sales service costs -30% customer support time tuya 8#10Value-added Service Demonstrates Obvious Growth Potential Selected Value-added Services IPC Cloud Storage & Video Streaming OEM APP Voice Skills lot Certification Cloud Development Framework APP Advanced Functions YoY Growth tuya 9#11Cube Solution are Making Steady Progress New acquired Exemplary customers South East Asia One of the largest multinational electrical, electronics, automobiles and other appliances brand IC PRC Mainland A PRC large comprehensive Industry Investment Group Energy AP City & Traffic Tens Top enterprises leads A Campus [181 Outdoor HA Vehicle Management Utilities tuya 10#12Stable Gross Margin under Headwinds Gross Margin Overall gross margin 24% 28% lot PaaS gross margin 25% 67% Q1'19 26% SaaS and Others gross margin 81% 28% 28% 29% 29% 76% 73% 30% 30% 31% 76% 33% 34% 35% 78% 77% 38% 40% 74% 41% 42% 42% 43% 42% 43% 43% 41% 43% 43% 42% 43% 75% 75% 73% 73% 77% 79% Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Key points: Showing our value proposition all the time, including under headwinds ● ● ● Remained relatively stable for several quarters tuya Due to effective implementation of business management and efficiency improvement initiatives Overall GPM fluctuated due to product mix 11#13Operating Margin and Net Margin Non-GAAP operating margin¹ since Q2'21 to Q2'22 (31%) (38%) (45%) (64%) (68%) After excluding (31%) one-off expenses WW (36%) Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 One-off expenses, including headcount optimization costs, etc. Non-GAAP net margin¹ since Q2'21 to Q2'22 (27%) (37%) (42%) (60%) (67%) After excluding (23%) one-off expenses WI (30%) Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Main drivers: ● ● tuya Significantly decreased basic payroll and benefits due to headcounts down in Q2 One-off headcount optimization costs One-off commercial penalties and restoration fees due to rental termination, etc. 1. Non-GAAP measures. Please refer to the earning release or financial reports for reconciliations of these non-GAAP measures to their most comparable GAAP equivalents. Note: Numbers are rounded for presentation purposes. 12#14Strong Cash Position Operating cash flow since Q2'21 to Q2'22 (USD'M) $5.8 $(46.1) $(53.2) $(57.4) $0.4 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 One of The Largest Advantages & Protection Organic operating cash flow since Q2'21 to Q2'22 (USD'M) $(7.2) $(46.1) $(53.2) $(57.4) $(1.5) Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 1. Organic operating cash flow is calculated by excluding the cash received from Depositary Sharing Program from Operating cash flow. Note: Numbers are rounded for presentation purposes. Main drivers: ● ● Strong cash position: ● Operating cashflow improved significantly quarter over quarter, reversing the trend of sequential decreases since the third quarter of 2021 Due to the decrease in operating expense, particularly employee-related costs, and improvement in working capitals tuya USD 952M cash on hand No debt, no capital commitments 13#15→ Expanding Developer Ecosystem /> Product Development 1. "Developer" refers to the registered developer, as of June 30, 2022. 629,000 Developers¹ +8% Quarter over Quarter / +64% Year over Year App Development tuya Cloud Development tuya 14#16tuya Building an loT Developer Ecosystem Enabling Everything to Be Smart#17Appendix: Reconciliation of Non-GAAP to GAAP Reconciliation of operating expenses to non-GAAP operating expenses Research and development expenses Add: Share-based compensation Adjusted Research and development expenses Sales and marketing expenses Add: Share-based compensation Adjusted Sales and marketing expenses General and administrative expenses Add: Share-based compensation Adjusted General and administrative expenses Reconciliation of loss from operations to non-GAAP loss from operations Loss from operations Add: Share-based compensation expenses Non-GAAP Loss from operations Non-GAAP operating margin Reconciliation of net loss to non-GAAP net loss Net loss Add: Share-based compensation expenses Non-GAAP net loss Non-GAAP net margin Weighted average number of ordinary shares used in computing non-GAAP net loss per share, basic and diluted Non-GAAP net loss per share attributable to ordinary shareholders - basic and diluted For the Three Months Ended For the Three Months Ended March 31, 2021 March 31, 2022 USD'000 USD'000 (42,657) 2,956 (39,701) (19,388) 1,482 (17,906) (16,292) 10,573 (5,719) (41,518) 15,011 (26,507) (31.3%) tuya (38,130) 15,011 (23,119) (27.3%) 560,936,196 (0.04) (37,221) 3,452 (33,769) (15,061) 1,847 (13,214) (17,130) 11,871 (5,259) (39,460) 17,170 (22,290) (35.6%) (35,869) 17,170 (18,699) (29.9%) 550,172,103 (0.03) 16