HZO protects electronics from the most demanding environments with world class nano coatings to enable a better, more durable product.

1. © 2019 by HZO Inc. All rights reserved. HZO.COM. CONFIDENTIAL
OVERVIEW
2019

2. © 2019 by HZO Inc. All rights reserved.
Challenge
WILL 30B+
CONNECTED
DEVICES IN 2020
BE PROTECTED?
Consumer Devices
Mission Critical
Phones
Wearables
Headsets
Tablets / eReaders
Autonomous Cars
IoT / Industrial
Aerospace
Defense
1 Source: IDC
Over 300M smartphones will
be damaged by water this
year costing businesses in
excess of $100B.1

3. © 2019 by HZO Inc. All rights reserved.
Problem
THE INDUSTRY
STANDARD
FALLS SHORT
OF WHAT IS
NEEDED.
X
Predicated on keeping
water out of a device;
Based on exposure to only
clean water, NOT corrosive
(e.g. salt) or toxic
environments;
Applies only to a new out
of the box products.
1
2
3
The current industry standard
for liquid and dust protection is
the IPX scale (e.g. IPX7). The
standard is:

4. HZO protects electronics from the most demanding
environments with world class nanocoatings to enable
a better, more durable product.
Mission

5. WATCH ‘HZO VS MECHANICAL
SEALS’ VIDEO
THERE IS NO
COMPARISON
TO HZO TECH.
MECHANICAL SEALS
• Limited reliability
• Corrosion resistance varies
• May be dislodged on physical impact
• Visually unappealing
• Design limitations
CONFORMAL COATING
• Bulky and heavy
• Curing required
• Limited heat dissipation
• Obtuse application
THIN FILM COATINGS (HZO)
• State of the art thin film alternatives
• Tested for up to 1,000 hours of
submersion
• Better corrosion resistance
• Highly conformal, uniform, and pinhole-
free
• Optically clear
HZO technology exhibits superior
performance over mechanical
seals and traditional conformal
coatings when exposed to water
or corrosive environments.
Market

6. SPECTRUM OF PROTECTION
THE FINAL FRONTIER OF
ELECTRONIC DEVICE PROOFING.
HZO's technology completely protects devices and components from
harsh and corrosive environments—for extended periods of time, all
while preserving complete device design, form and function.
NOT JUST WATER
HZO protects devices from salt
water, oil, corrosives,
humidity, dust and more
STANDARDS
Lets liquid in instead of
keeping liquid out, giving
manufacturers free reign on
design
100 MILLIONS+
Number of new devices
that will be coated by HZO
in 2019 for globally
recognized brands
ZERO
Number of customer returns
attributed to coating issues
since HZO began operation
Technology

7. ENDTOEND
TURNKEY
APPROACH.
PEOPLE
ü Deep domain expertise
ü Practical experience
PROCESS
ü Guaranteed quality
ü Unique IP
ü Innovation in automation
ü Comprehensive Bill of Process
ü Unparalleled Performance & Quality
MATERIAL SCIENCE
ü Thin film applications (Plasma, Parylene)
ü Next generation solutions (ALD, DLC)
ü Hybrid alternatives
ü Optimized approaches
CAPITAL EQUIPMENT
ü Proprietary products
ü Industries largest chambers
ü Advanced automation
ü Laser ablation / Plasma etching
Capital
Equipment
Material
Science
Process
People
Solution

8. 346+
ASSETS
THE HZO SOLUTION
IS DIFFICULT TO
REPLICATE.
HZO's intellectual property creates a
unique advantage for customers. Our
large and growing patent portfolio covers
equipment, processes, and materials.
111
GRANTS
14
COUNTRIES
Intellectual Property
PROCESS
5%
EQUIPMENT
14%
SOFTWARE /
METROLOGY 17%
MATERIALS
(PROCESS) 25%
MATERIALS
(STRUCTURE) 39%
346+ ASSETS
INTELLECTUAL
PROPERTY

9. MEETING THE
NEEDS OF
EVERY
STAKEHOLDER
IN THE PROCESS.
Community
1) proven technology; 2) proven processes; 3)
scale / throughput; and 4) road map (i.e.
Plasma, Parylene, PEP, Hybrid)
ENGINEERING
PROCUREMENT
OPERATIONS
MARKETING
C-SUITE
1) vendor reliability; and 2)
responsiveness
1) predictability (performance); 2)
repeatability (quality and consistency across
batches); 3) automation (e.g. masking); and
4) MSA performance
1) product differentiation (e.g.
waterproof); 2) customer satisfaction
(i.e. durability); and 3) HZO brand
identify (i.e. customer value)
1) Business reputation; 2) Customer
retention 3) Reliable and responsible
manufacturing; 4) Vendor innovation; and
5) deep expertise in coatings
10
Automotive
IoT
Medical Device

10. © 2019 by HZO Inc., All Rights Reserved. | 11
Deliver Drive Down Stream Value &
Engineer Cost Out of the Business
MARKETSAcquisitionAccident
DiagnosisLogistics
Repair
SatisfactionRetention
Services
Up
Sell
Cross
Sell
Secondary
M
kt.
$699 $30 $11 $100 ? ? 1.99/mo.
(Cloud)
1.99/mo.
(Music)
2.99/mo.
(New App)
$199
Example: Smartphone
Brand
?
Ancillary
$149
(Ear Buds)
Value Map

11. 13
WE HAVE BEEN ADOPTED
BY TOP GLOBAL BRANDS.
• #1 Coating Supplier for eReaders
• #1 Coating Supplier for In Ear Audio (Earbuds)
• Next Generation Smartphone Protection
• Key Supplier to Autonomous Vehicle Components
Consumer Industrial
Customers (Select)

12. Locations:
Utah
Switzerland
Hungary
Weifang
Shanghai
Shenzhen
Kunshan
Jiangxi
= Production
= Development
= Offices
GLOBAL FOOTPRINT.
Geography

13. PLANNING FOR SUCCESS
EVERY STEP OF THE WAY.
HZO has been qualified by leading OEMs, which represent
some of the biggest brands in their respective markets,
and has successfully serviced and delivered to the most
demanding requirements.
NEEDS
ASSESSMENT
P1 & P2
VIABILITY
EVT / DVT
DEFINE
OBJECTIVE
MASS
PRODUCTION
CONTINUED
INNOVATION &
OPTIMIZATION
Getting Started
DESIGN OF
EXPERIMENT
(DOE)

14. THE MARKET IS READY,
AND WE ARE LEADING.
SCALE & SCOPE
BEST-IN-CLASS TECH
HZO is the leading solution
with its wide Spectrum of
Protection ™ and ability to
mass-scale production
TURNKEY SOLUTION
Bringing together the people,
process, materials and
equipment to deliver the
ultimate outcome – device
protection
REAL VALUE
HZO delivers real value by
helping OEM’s develop a more
reliable, durable device. This
results in fewer returns, higher
consumer satisfaction, and
greater brand value
Why HZO
Whether its 100s or 100,000s
devices per day, from simple
to complex design, HZOs track
record of success is
unparalleled

15. CONFIDENTIAL | HZO.COM | 17
•If it doesn’t say
HZO you’re not
truly protected!