Konica Minolta Day

Hyperspectral Imaging
Toward Solving Material Issues
March 15, 2023

Tapio Kallonen, CEOGood afternoon, my name is Tapio Kallonen, and I’m the CEO of Specim.
I’m here today to explain how Specim is solving material issues with hyperspectral
imaging, as a member of Konica Minolta Group.

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SPECIMIMPACT TO
THE WORLD

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Specim and hyperspectral imaging technology has a great impact to the world we live in.
We make our existence more sustainable in the world by increasing the efficient use of ourcommon scarce global resources through spectral imaging, a non-invasive material
identification technology. We improve the use of materials, enhance food quality, reduce
waste, support health and life of humans and nature, and provide valuable information onour environment, from land to sea.”

2TODAY
FOUNDED IN

1995

HEAD OFFICEOULU, FINLAND> 9 000
SPECTROGRAPHS+SPECTRAL CAMERASDELIVEREDPERSONNEL CIRCA

90>20% CAGR IN INDUSTRIAL SEGMENT
SPECIM LOCATIONSPART OFKONICA MINOLTASINCE 2020

BARCELONA, MUNICH,NEW JERSEY, SHANGHAI+ WORLDWIDE DISTRIBUTOR NETWORK
3Specim is founded in 1995 in Oulu, Finland. Oulu is located in the middle part of Finland,
and the city is famous for its unique knowhow particularly in optoelectronics due to thepresence of Oulu university and Finnish National Research Institute.
Specim is the manufacturer and designer of hyperspectral imaging cameras, software, andrelated accessories. We employ 90 people, and only in the past few years we haveestablished own presence in the US, China, Germany, and Spain. We sell and deliver ourproducts worldwide to all continents both directly and through worldwide distributor
network.
Specim is experiencing strong growth in the market, in average above 20% compound
annual growth rate since the last five years in the industrial segment.

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OUR VISION : SPECTRAL IMAGING MADE EASY
MACRO TRENDS••••

EnvironmentalAutomation
Health and Life
Circular Economy

Improving fulfillment in workand corporate dynamism

Addressing climate change

Using limited resources effectively

OUR MISSION

Create new value forcustomers and society
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Our vision is Spectral Imaging Made Easy.
In a nutshell this means that we work towards the goal that this extremely powerfultechnology would be easily applied in various different industries across the globe in thefuture.
Our journey is supported by global macrotrends such as increased environmental
conciousness, automation, health and life, and circular economy. The obvious growth
drivers for us are the higher levels of automation nowadays applied more and morethroughout industries, constantly growing need of detailed information, and the increasing
importance of ensuring quality and safety.
Our mission is to create new value for customers and society.

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POSITIONING WITHIN THE KONICA MINOLTASENSING BUSINESSSpecim, Spectral Imaging

Radiant Vision Systems*2020*2015

Konica Minolta

Instrument Systems*2012

Eines Vision Systems*2019

5Specim belongs to Konica Minolta Sensing Business together with companies such as
Instrument Systems from Germany, Radiant Vision from the US, and EINES from Spain.
Konica Minolta Sensing business consists of 4 business pillars. Color measurement, display
measurement, visual surface inspection and hyperspectral imaging.

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WHAT IS HYPERSPECTRAL IMAGING?

Classify different materials
based on their unique spectral
signature.

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What is hyperspectral imaging?
Hyperspectral imaging is a completely non-destructive way to identify different materials ordefine their properties. Since every material and compound reacts with light differently, thehyperspectral imaging provides individual spectral signatures that can be used to identifymaterials. Hyperspectral imaging enables identification, mapping, and separation ofmaterials by their chemical or color differences.

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WHAT IS HYPERSPECTRAL IMAGING?

The unique spectral signature of nuts vs. shells
captured with the HSI camera.

Specim HSI system obtains chemical information
across the full product stream in real-time with asingle scan.

Hyperspectral vs. RGB image of nuts and shells.
7On the left-hand side of the slide, we can see how hyperspectral imaging solution is
installed in a very typical industrial in-line application where the objects are moving withthe conveyer belt, and the hyperspectral imaging cameras are collecting the data from thefull product stream and analysing it in real-time.
On the right-hand side top corner, it is illustrated how easily hyperspectral camera is able
to detect the difference between nut shell and nut meat due to their very distinguishedspectral signature.
On the right-hand side bottom corner, we notice that visually these look very similar, andthus traditional cameras can’t detect the difference. But hyperspectral imaging camera cando that, and the analysing software has indicated nut shells in green colour and nut meatin red colour. Thanks to the precise and real-time analysing capability the machine canthen detect and sort the material in a way which increases quality and safety.

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CHRONOLOGYEARLY LEADERSHIP ON

1 RESEARCH

2 COMMERCIALISATION

3 RAPID ADOPTION

Building on the early leadership on research, Specim is increasingly focusing
on ready-to-deploy integrated solutions for the growing industrial market.
Industrial platform
solutionsApplication specific solutions
Spectral cameras
1995

Spectrographs2023

8Since the beginning, from 1995, Specim has designed the core technology capabilities inhouse, and has gained both the technical and commercial leadership position in thehyperspectral imaging world.
Step by step Specim has increased its position in the value chain, from the complex opticalcomponents and spectrographs to complete hyperspectral cameras, and then to industrial
and scalable value-added platform solutions which are combining hardware and software todeliver business value to its customers.

8SYNERGIES AS A KONICA MINOLTA GROUPGEOGRAPHIC
COVERAGE EXPANSIONTECHNOLOGY EXPANSION

Cooperation with Konica Minolta salescompanies.

See beyond the human eye.
Lightsourcecolor

Objectcolor

Visualinspection

Hyperspectral
imaging

Expand to safety and security
inspection / monitoring.

VisibleInvisible

TARGET CUSTOMER SEGMENT
EXPANSIONCUSTOMER VALUE EXPANSION

Offer new value to Konica Minolta's
customer base, especially to brand owners.

Create new value withKonica Minolta's group companies.

Machinebuilders

Data
serviceproviders

Research
centers andUniversities

Brandowners
Color

AutomotiveDisplay

Film9

There are clear synergies for Specim as a member of Konica Minolta Group. The mainbenefits to support Specim’s strong growth from Konica Minolta are quick expansion ofgeographical coverage, broadening technological capabilities to solve customers’ problems
together with other group companies, widening the customer segments, and providing
more value to customers in Konica Minolta core business applications, particularly to brandowners such as automotive manufacturers.

9COMPETITIVE LANDSCAPE IN RELATION TO THE MAINCOMPETITORS
Global reachGlobal Market Share #1
CAGR 2018-2022 ≈ 16,7%
Competitor 1
Competitor 3

Competitor 2

Industrialscalability
Competitor 4Competitor 5Competitor 4Competitor 6

10Specim is the leading provider of hyperspectral imaging solutions in the world.
Compared to the main competitors in the market, Specim has established the strongest
position in terms of global reach and industrial scalability. We believe that hyperspectral
imaging will be one of the dominant optical measurement technologies to be used invarious industrial applications in the future, and for that bright future Specim has gained
the best position over competition.

10TARGET MARKETSpecim has been outperforming the market growth. Our industrial platform, SpecimONE,
allows us to grasp new opportunities in the growing HSI system market.
HSI System market•Market size : 900M USD / 2025
•Players: Integrators, Machine builders,
Brand owners, Service providers

HSI Camera market•Market size: 250M USD /2025
300•CAGR 11%250
•Players: Camera manufacturers

CAGR 11%250
17520015012010050020182022

2025
Source: Specim estimation based on market reports11

Specim provides industrial cameras, optical components, and accessories to companies
such as machine builders, machine vision integrators, data service providers, production
facility owners, and R&D departments. The recently launched SpecimONE industrial
hyperspectral imaging platform provides ground-breaking equipment for the users to really
apply the full potential of this technology. SpecimONE allows users to build models andapplications, and to run them in real-time in SpecimONE environment helping the users toacquire the information they need, on the spot, and with 100% accuracy.
Hyperspectral imaging market is expected to have a double-digit compound annual growthrate for the next years.
Specim has been growing faster than the market in the past years which is strengthening
our position as the market leader. Specim has above 10% market share in hyperspectral
imaging camera market, and even stronger position in the strategically most importantsegment which is the industrial market. In addition to the state-of-the-art industrial
cameras and optical components, Specim’s scalable industrial SpecimONE platform
allows Specim to grasp new opportunities in the growing markets.

11WASTE SORTING

MATERIAL
RECYCLING

HEALTHCARE & PHARMA

FOOD QUALITY CONTROLFOOD SORTING

ENVIRONMENT MONITORINGGEOLOGY

MINERAL EXPLORATIONAGRICULTURE & VEGETATION

12Specim technology serves various type of industries and applications. We contribute tomajor megatrends as sustainable use of natural resources, recycling and reuse ofmaterials. Major machine builders and brand owners trust on Specim technology in thefields of waste recycling and sorting, food sorting and quality control, healthcare andpharma, agriculture and vegetation, as well as mineral exploration.

12PLASTICS

Global plastic waste generation morethan doubled from 2000 to 2019.

Globally, only 9% ofplastic waste is recycled
while 22% is mismanaged and 50%
ends up in landfill.
Source: OECD

13Plastics are very important for various industries, but they are still produced mostly fromfossil based raw materials. Their production is very resource intensive, and most of theplastics waste today is not recycled but put on landfill, water systems or burnt. Sustainable
use of plastics and efficient plastics recycling reduces marine litter, greenhouse emissions
and dependence on fossil fuels.
Specim hyperspectral cameras and SpecimONE platform can reliably identify and sortvarious different plastics types in recycling process. Near infrared imaging is a relatively
standard method in Europe to restore valuable plastics in recycling industry. Also, many
major brand owners are now taking initiative to recycle and reuse the plastics products
they’ve produced to give them a second life, and thus to contribute to sustainability. This isalso driven by legislation.

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TEXTILESThe apparel and footwear industries
account for 8% of the world´sgreenhouse gas emissions.

Globally, less than 1%
textile waste is recycled
while roughly 73% is landfilled.
Source: OECD14

The textile sector is resource-intensive with notable climate and environmental impacts. Itis estimated that less than 1% of all textiles worldwide are recycled into new textiles.
Due to different chemical content, natural and synthetic textiles can be sorted using
hyperspectral imaging technology. Replacing manual sorting and recycling with machine
vision improves turnaround time, safety and accuracy of the recycling process. Similarly toplastics recycling, also in textile industry the brand owners are actively working toward
recycling and reusing of the virgin textile materials.

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RECYCLING & WASTE MANAGEMENT

HSISolutions
Plastics sorting
Textile recycling
Construction waste
Household wasteetc.

Near 100% purity and higher
value of recycled fragments

MACHINE VISIONROBOTICS, AUTOMATION

Needs
Automate waste sorting
Improve quality and efficiency
Turn waste into reusable
materialReduce health and safety risks
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Hyperspectral imaging is a complementary solution to traditional machine vision
technologies. Especially our SpecimONE platform offers seamless integration to machine
vision systems and provides them ability to see beyond visible range. Specim’s customers
have successfully unlocked various type of applications in recycling and waste management
industries. Large throughput, high speed of the material flow and real-time decisionmaking capability are crucial in any industrial application. Due to hyperspectral imaging
capability, a recycling machine is able to sort various different materials on the same
production line, including plastics, wood, textile, paper cardboard, glass, etc.

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https://www.specim.com/case-study-picvisa-machine-vision-solutions-for-waste-treatment-recycling/16

On the video Daniel Carrero, Product Manager of Picvisa presents their plastics sorter
ECOPACK equipped with Specim hyperspectral cameras.
Picvisa is a Spanish company that has over 20 years’ worth of experience in providing
machine vision solutions for waste treatment, recycling, and various industrial processes.
Assisted by the Specim hyperspectral cameras, ECOPACK is able to sort up to 6 tons ofplastic packaging per hour. This was previously done by six workers.

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SPECIM FX50

The Specim FX50 is the only HSI
camera on the market required inblack plastics sorting.

17Black materials are difficult in recycling process, as the black color is usually based oncarbon which hides all the spectral information until thermal wavelengths. Specim took thechallenge to develop an industrial thermal range hyperspectral camera, Specim FX50,
capable of sorting black plastics, a task that is impossible for most of the technologies.
Specim FX50 has been well adopted in the recycling industry, being one of our successstories from recent years.

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FOOD
Globally of foodproduced for human consumption,

1/3 is lost or wasted.
If wasted food were a country, it

would be the third-largestproducer of carbon
dioxide in the world.
Source: WPF

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Food production and food supply chain are one of the major industries affecting theenvironment and contributing to climate change. Sustainable use of water, land andfertilizers in farming phase are topics to address, as well as reduction of unnecessary waste
both in production, transportation phase, and when finally brining the product toconsumers. Globally, one third of the food produced for human consumption is lost orwasted.

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FOOD SORTING AND QUALITY CONTROL

HSI“Integrating hyperspectral
solution to machine visionequipment, we automate thework of three people.”
Emilio J. de la Red,
Head of Innovation, INNDEO

Food sorting and quality control
Foreign object detection
Food grading
Substance analysis
Packaging inspection

MACHINE VISIONROBOTICS, AUTOMATION

Automate workflows
Increase food safety
Reduce food waste
Avoid recalls
Improve production efficiency
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In food product supply chain, hyperspectral imaging technology is applied in various way.
During the processing and packaging phase, detection of foreign objects, measuring fat ormoisture content, or inspecting that package sealing does not have any leaks, are typicalapplications of Specim technology, even though difficult or even impossible task to manyother technologies.
Typical customer for Specim cameras is a machine builder or integrator, who provides
sorting or quality inspection machines to major food industry brand owners.

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ENVIRONMENT, GEOLOGY & MINERALSREMOTESENSINGRECYCLING

Predict, monitor, assess,and aftercare for ecologicalcatastrophes

Improve yield quality
Detect plant diseases
Reduce waste, energy, andwater consumption
Estimate and quantify yield growth

PRECISION FARMING AND
VEGETATION ANALYSISDRILL CORE SCANNING

Efficient exploration anduse of minerals
Rapid and reliable mineral
analysis of geological samples
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Hyperspectral imaging is an extremely versatile technology. In food supply chain, we
contribute not only to food sorting and quality control, but also to farming and production
phase. Yield quantity and quality estimation, plant disease detection, and efficient andsustainable use of fertilizers are all applications that can be solved with Specimtechnology.
Another important application field is geology and mining, where sustainable and efficientuse of raw materials plays a major role. Hyperspectral imaging is used to map the mineraldeposits in detail, and this information is to help decision making when planning the mining
sites. Hyperspectral imaging technology can be also applied for more efficient control of theraw material streams of mining industry. Major international mining industry players trust
on Specim cameras and technology.

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PRODUCT RANGETYPICALAPPLICATIONSVNIR

NIR/SWIR

MWIR

LWIR

400– 1 000 nm

900 – 2 500 nm

3 000 – 5 000 nm

8 000 – 12 500 nm

Colour, Fruit & Veg, Skin &Tissue, Plants, Film, Water

Sorting, Recycling, ChemicalWaste, Pharma, Quality

Black Plastic, Surfaces,Minerals, Detection

Mining, Detection,Gas, Geothermal

IQ SERIESSPECIM IQ

FX SERIESFX10FX17

AFX SERIESAFX10AFX17

SISU SERIES

SisuCHEMA
SisuROCK
SisuSCSPFD4K-65-V10E

SPECTRALCAMERASsCMOS-50-V10E

FX50

SWIR

OWL
LWIR-HS

FENIX

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SOFTWARE

SpecimINSIGHT

Specim IQ Studio• Off-line tool to browse andexplore data, create andvalidate classification models.
• Part of the SpecimONE
spectral imaging platform.

• Remote control the Specim IQ
camera and handle the Specim
IQ data.
• Process the hyperspectral dataand create applications for theSpecim IQ.

Lumo family

CaliGeoPRO

Selection of data acquisition
software tools for Specimcameras, scanners and airbornesystems.

Data processing tool toradiometrically correct andgeoreference hyperspectral dataacquired with Specim AISA andAFX series sensors.
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GLOSSARYHSI Hyperspectral Imaging
A spectrograph is an instrument that separates incoming light by its wavelength or
frequency and records the resulting spectrum in some kind of multichannel detector,
like a photographic plate.

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