#1tuya Investor Presentation Fourth Quarter and Fiscal Year 2021 March 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. tuya 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#4Global Influence in 2021 at A Glance 12 Gartner reports Tuya Selected by Gartner, the world's leading IT research firm, in 12 research reports including Digital Twins, IoT Platforms and IIOT¹ 2 influential industry events hosted Bluetooth Developer Conference Cellular Communication Developer & Outdoor Travel lot Product Conference ● ● 7+Mn ADS repurchased (for a total of US$54 Mn) Under the share repurchase plan², showing the management's long-term confidence 1. "IIOT" refers to Industry Internet of Things. 2. Tuya announced share repurchase program on August 30, 2021. 3. Refer to key accounts and premium customers. tuyo 10+ Mn annual loT PaaS deployments achieved by single customer for the first time An international brands with 50 years history that cooperated with Tuya since 2018 with 52 PBT SKUs on the loT development platform, achieved this outstanding milestone in 2021. ~50/30 Fortune 500 customers (at 2021/2020 end) Continue to implement a series of newly- launched plans and initiatives to facilitate targeted services to all types of customers, including, in particular, those KAs and PCs³. tuya 3#5Our Product Launching Roadmap Business Smart Device Empowered Categories Communication Protocol 2015 t loT PaaS WiFi 2016 Lighting & Electrical Note: Icons and logos are for illustrative purpose. * 2017 Bluetooth Single Mode 2018 Consumer Safety & Sensors zigbee I 2019 Appliances NB-IoT Wi-Fi + BLE Bluetooth Mesh 2020 SaaS SaaS 1 Sports, Wellness & Entertainment LTE Cat 1 Sub-1GHz 2021 Outdoor Tuya Beacon 2022 More Wi Fi 6 CERTIFIED tuya matter 4#6Expanding loT PaaS and SaaS Customers simply smart home Danfoss SENCOR HYPNOTEK XPENG QJMOTOR deli LOCK&LOCK the warehouse / SUNNY HAVELLS Jaquar ● Note: Selected customers as of December 31, 2021. CLEANLIFEⓇ TEST RITE CG SUPREME IMPORTS EXPANDING ECOSYSTEM Crompton BAJAJ Bajaj Electricals Ltd. Inspiring Trust wipro MINI SOU realme Coppel tommee tippee Kaadas 凯迪仕 (Henkel) CLP 中 中電 Telkom mediaexpert COMMAX SmartHome & Security Indonesia cyanergy USHA tuya Möhlenhoff CLOUD by UIH HM WONLY 王力集团 AJHC entel 5 сл#7Strong Performance in SaaS and Others Customers of Real Estate/Community/Park Solutions Ⓒ mydream+ 梦想加 遠洋集團 SINO-OCEAN GROUP ●宋都物业 SUNDY PROPERTY MANAGEMENT 瑞安房地產 SHULON LAND HDL L.gem vanke Kaisa 佳兆业 DEWERT OKIN Customers of Commercial Lighting/iBuilding SaaS yAnon 阳光照明 FIREFLY SKYWORTH 构筑喜悦 HUAYI 华艺照明 喜临门 深度好睡眠 SMART CONTROL TECHNOLOGY Customers of Hotel/Apartment(Residential) SaaS 水滴管家 全房通 21 中梁控股集团 ZHONGLIANG HOLDINGS GROUP StrongLED'Ê NEW HOPE 新希望服务 SERVICE DELIXI ELECTRIC 0中海地产 GRUPO BILIN WE moraval SUNMEI 尚美生活 Hilk·喜尔康 VC雷士照明 Ter Real Estate/Community/Park Re-align SaaS with a "loT+PaaS+SaaS" model, enabling customers to pick and choose on demand Over 100 community projects delivered during the year Tens of large-scale community projects pipeline, including several ¥million-level projects ● • . Commercial Lighting/iBuilding SaaS² Globally served ~180 enterprise customers and 300+ projects in 12 countries and regions Expanded to and landed the first smart building project in Q4 Series benchmark cases built, e.g.: achieve a ~65% lighting energy consumption/~270 tons of carbon emission reduction annually for FUXIN New Material¹ ● . ● Hotel/Apartment(Residential) SaaS³ Over 2,000 hotels covered (including the first PBT smart hotel in Malaysia), 9x rooms covered in China YoY 85% customer retention rate Target on China and European countries opportunities in 2022 0 ● Value-added Services Tripled monthly subscription revenue of end customers for VAS in 2021 See strong demands for loT cloud storage, message pushing, Cube private cloud, loT algorithm, etc. ● tuya 1. A large A-share listed high-new tech industry enterprise in China. 2. The apartment SaaS are now re-defined as "Residential SaaS" due to the products expansion strategies of focusing on specific markets including rental and residential. 3. The commercial lighting SaaS business expanded to smart building field, with a more comprehensive product "iBuilding SaaS" released in December 2021. 6#8→ Expanding Developer Ecosystem /> Product Development 1. "Developer" refers to registered developer, as of December 31, 2021. 510,000 Developers¹ +14% Quarter over Quarter / +95% Year over Year App Development tuya Cloud Development tuya 7#9Strong Revenue Growth Total revenue (USD'M) Annual revenue 68% YoY Growth / 69% 3-year CAGR $105.8 FY19 $179.9 FY20 $302.1 FY21 $16.3 $21.8 Quarterly revenue 19% YoY Growth in Q4'21 $33.5 $34.2 $18.9 $38.8 $59.1 $63.0 $56.9 $84.7 $85.6 $75.0 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 tuya Note: Strong seasonality and quarterly fluctuation in fiscal year 2021 due to challenges in supply chain, international logistics disruptions, and high global inflation not seen in decades, but still achieved an excellent revenue momentum. 8#10Strong Revenue Growth Revenue breakdown for the year (USD'M) Q4 Q1-3 $151.7 $54.5 $97.2 FY20 lot PaaS YoY +72% $261.4 $62.1 $199.3 FY21 Q4 Q1-3 SaaS and Others $6.1 FY20 YoY +203% $2.4 $3.7 $18.6 $7.3 $11.3 FY21 Smart Device Distribution Q4 Q1-3 $22.1 $6.2 $15.9 FY20 YoY Flat $22.2 $5.6 $16.6 FY21 tuya 9#11World-Class Dollar-Based Net Expansion Rate 188% Q4'19 173% 160% Q1'20 179% Q2'20 181% Q3'20 210% A LEADING LEVEL IN CLOUD PAAS AND SAAS INDUSTRY FOR NINE CONSECUTIVE QUARTERS Q4'20 211% Q1'21 179% Q2'21 153% Q3'21 Q4'21 tuya Note: Tuya calculates dollar-based net expansion rate of loT PaaS for a trailing 12-month period by first identifying all customers in the prior 12-month period (i.e., those who have placed at least one order for loT PaaS during that period), and then calculating the quotient by dividing the loT PaaS revenue generated from such customers in the trailing 12-month period by the loT PaaS revenue generated from the same group of customers in the prior 12-month period. 10#12Large Customer Growth Premium IoT PaaS customers¹ Contributed ~87/88% of Q4'21/FY21 IoT PaaS revenue 127 Q4'19 99.5% Retention Rate³ 188 Q4'20 311 Q4'21 Average LTM loT PaaS revenue² Per premium loT PaaS customer (USD'K) 510 Q4'19 706 Q4'20 747 Q4'21 tuya 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. 2. A management metric calculated by dividing total loT PaaS revenue contributed by premium loT PaaS customers for last twelve-month period by total number of premium loT PaaS customers during that period. 3. Retention rate, which measures Tuya's ability to maintain its relationships with its customers, refers to the percentage of customers from preceding period who have placed orders in the current period. 11#13Strong Revenue Growth in SaaS and Others SaaS and Others revenue (USD'M) $0.7 Q1'20 $1.2 Q2'20 $1.8 Q3'20 $2.4 Q4'20 $2.3 Q1'21 $3.4 Q2'21 $5.6 Q3'21 $7.3 Q4'21 +205% Q4 SaaS and Others Revenue Y/Y Growth tuya 12#14Improving Gross Margin Overall gross margin 24% 25% 26% 28% 28% 28% 30% 30% 33% 31% 29% 29% 34% Note: Numbers are rounded for presentation purposes. Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 lot PaaS gross margin 38% 35% +5 pps 40% 41% 42% 42% 43% +3 pps 42% 42% 42% 43% Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 SaaS and Others gross margin remained stable at 73% Smart Device Distribution gross margin was 11% Improvement drivers: ● ● ● Increased economies of scale and cost savings Improved efficiency achieved through effective R&D Expansion into higher-margin loT PaaS product lines tuya 13#15Operating Margin and Net Margin Non-GAAP operating margin and net margin¹ (FY21) (34%) (32%) 2020 (39%) (36%) 2021 Non-GAAP operating margin Non-GAAP net margin Non-GAAP operating margin and net margin¹ (Q4'21) (25%) (24%) Q4'20 (45%) (42%) Q4'21 1. Non-GAAP measures. Please refer to the appendix for reconciliations of these non-GAAP measures to their most comparable GAAP equivalents. Note: Numbers are rounded for presentation purposes. Main factors: ● Stable growth of gross margin ...offset by... ● Increased R&D personnel to keep sufficient reserve of talents tuya Increased marketing efforts Increased professional service fees incurred by being a public company 14#16Operating Cashflows Net cash used in operating activities¹ Net cash used in operating activities¹ as % of revenue (FY21) as % of revenue (Q4'21) (27)% 2020 (42)% 2021 (14)% Q4'20 (71)% Q4'21 1. Non-GAAP measures. Please refer to the appendix for reconciliations of these non-GAAP measures to their most comparable GAAP equivalents. 2. Primarily refers to account receivables, account payables and advance to suppliers. Note: Numbers are rounded for presentation purposes. Main factors: ● Increasing gross profits ...offset by... ● Increased payment for employee-related expenses Working capital changes² due to specific credit and payment terms agreed in sales and purchase activities for strategical purposes tuya 15#17tuya Building an loT Developer Ecosystem Enabling Everything to Be Smart#18Appendix: 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 Dec 31, 2020 Dec 31, 2021 USD'000 USD'000 (25,467) 961 (24,506) (11,792) 404 (11,388) (6,220) 1,687 (4,533) (18,705) 3,052 (15,653) (24.8%) (18,381) 3,052 tuya (15,329) (24.3%) 221,980,000 (0.07) (46,187) 4,093 (42,094) (18,433) 1,634 (16,799) (21,011) 11,900 (9,111) (51,556) 17,627 (33,929) (45.3%) (48,844) 17,627 (31,217) (41.6%) 562,082,216 (0.06) 17