Tekna Holding ASA

Investor Presentation • Nov 9, 2023

Q3 2023 Interim Financial Results

Luc Dionne, CEO Espen Schie, CFO November 9, 2023

Disclaimer

This presentation has been prepared by Tekna Holding ASA ("Tekna" or the "Company") solely for information purposes. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities.

Statements in this presentation that are not statements of historical or current fact constitute "forward-looking statements"within the meaning of the Norwegian securities laws. Such forward-looking statements involve known and unknown risks, uncertainties, and other unknown factors that could cause the actual results of Tekna Holding ASA ("Tekna" or the "Corporation") to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms "believes," "belief," "expects," "intends," "projects," "anticipates," "will," "should," or "plans" to be uncertain and forward-looking. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this management analysis of the financial situation and operating results.

Information in this presentation is provided as of the date of this presentation. Tekna does not undertake to update any information in this presentation, whether as a result of new information, future events or otherwise, except as required by law.

Tekna in brief Luc Dionne, CEO

Tekna is a world-leading provider of advanced materials and plasma systems

Established organization with world-wide reach

Tekna is active in four industries that are propelled by global megatrends

Space exploration and hypersonic speed travel

Shifting economic powers and deglobalization

Climate change and environmental regulations

Connectivity and

Advanced materials

Systems

communication

Demography and health care

R&D & PlasmaSonic wind tunnels

Additive Manufacturing

CAD 290m

Emerging industry for which Tekna has identified CAD 290m of PlasmaSonic prospects over the next 10 years

up to +30%

Materials sales CAGR 2022- 2030 as forecast by Grand View Research and Smartech

+10.4% MLCC CAGR 2023-30 as projected by Research & Market 2023 edition

+18%, +28%

Projected CAGR for demand for anode and silicon respectively in 2020-30 as forecast by IHS 2021

Developing business lines

Q3 2023 Highlights Luc Dionne, CEO

6

Q3 2023 in brief Strong growth in revenues and profitability significantly improved

Revenues Q3 2023 CAD 9.1 million Q3 2022: 5.9m

EBITDA (adj) Q3 2023 CAD -1.7 million Q3 2022: -3.9m

Continued strong top-line development in Q3 2023

• Total revenue +53% compared to Q3 2022.
• Systems revenues +121%, driven by strong demand and consistent backlog
• Materials revenues +25%, +35% year-to-date, driven by demand and successful capacity expansion

EBITDA significantly improved from last year

• Continued revenue growth and improved contribution margin
• Clear effects of organizational efficiency and cost control measures

Order backlog 30.09.23 CAD 23.7million Q3 2022: 15.0m

Order backlog increased 58% over Q3 2022

• Order intake in Q3 2023 CAD 10.4 million, up from 6.5 million in Q2
• Backlog supports previous guidance of revenue growth for 2023 in both materials and systems

Consistent steady growth in revenues and improving margins

Tekna's systems technology is the result of decades of research and development. It matches the latest technological advances to meet both present and future needs

Enabling the development of novel materials around the world

Typical industries are energy and space exploration, and small-scale production of high value materials

Advancing hypersonic flight and orbital reentry vehicles

Typically sold to original equipment manufacturers and academic research centers, this configuration is used to simulate, measure and characterize behavior of spacecraft thermal protection materials

Continued strong growth in Systems orders and revenues

• Systems' order intake in Q3 was CAD 2.8 million with an order backlog at end of September of CAD 10.1 million. Another CAD 1.9 million added in October, confirming a re-energized industry.
• 9 plasma machine new orders received to date this year at a total value of CAD 8.1 million, from industrial and academic customers in Europe, Asia and North America
• Contribution margins for systems year-to-date are at 64%, continuing the good margin development over last year's 39%

Additive Materials order intake up 52% QoQ and building-up 2024 order book

Continued high demand in the market

• Order intake of CAD 7.6 million, up 108% from Q3 2022 and 52% from previous quarter, reflecting consistent demand
• Order backlog back to level from earlier in the year
• A new atomiser is scheduled to be commissioned by YE 2023 on Tekna's main selling materials, and one more in the first half of 2024, keeping up with growing market
• Strong opportunity pipeline building-up 2024 order book
• Increasing order intake and pipeline generated by the consumer electronics industry

Tekna's additive material allows for large-scale manufacturing of consumer electronic components

Tekna titanium powder supplied for Metal Injection Molding (MIM) to a premier Tier 1 part manufacturer in Asia

• A CAD 2.9 million order for titanium powder was secured in Q3 for deliveries in 2024
• A similar order valued at CAD 1.7 million was received from the same customer in May 2023 for deliveries in 2023
• These orders will be supplied from material readily available in our inventory, improving the company's cash position
• These orders were captured at a competitive price allowing to secure the market position. Margins expected to improve as the market for this product continues to develop
• This order is for material consisting of the smaller particles generated from our existing powder production

Photo courtesy of a Tekna customer in Asia Mobile phone and smart watch frames produced with Tekna Titanium powder

The consumer electronic market is fast growing and represents significant potential volumes.

Understanding the size distribution in powder production processes

• Metal powder production processes naturally yield a wide distribution of particle sizes
• This reality is the same for all powder producers
• For Tekna, the small and large sizes are byproducts having the same high quality as the mean size
• While all powder sizes can be qualified in the 3D printing industry, until recently there was a limited demand for the small and large cut sizes

We have worked closely with a wide range of customers and applications to secure sales of Tekna's entire production capacity and to realise our ambitious growth objectives

Tekna has worked closely with a wide range of customers and applications to secure sales of the entire production yield and realise our ambitious growth objectives

3D Printing

(examples: aircraft components, medical implants, others)

Metal Injection Molding (MIM) (examples: Mobile phone, Smart watch, small components)

Binder Jetting (BJ) (examples: Mobile phone, Smart watch, small components)

Directed Energy Deposition (DED)

(examples: large size components, aircraft part repair and surface protective coating)

Hot Isostatic Pressing (HIP)

(examples: aircraft components, medical implants)

3D Printing MIM BJ DED HIP Distribution of powder produced by Tekna small size mean size large size

Today, we are on the verge of qualifying our powders for applications that will utilize 100% of the full powder distribution

Tekna has worked closely with a wide range of customers and applications to secure sales of the entire production yield and realise our ambitious growth objectives

Capacity expansion in the MLCC industry continues

• The MLCC industry continues to invest in production facilities, both to increase overall production capacity and to relocate country of production
• Tekna management, board and technical staff have visited several key producers in the past six months
• We are getting a better understanding and confirming the producers' supply chain priorities, material specifications and the rationale for qualifying new supply sources
• In spite of the slower demand for smart phones in 2023, we remain very positive for the MLCC industry outlook with growing sales of EV's, smart phones and other electronic devices

Slide from Tekna's Q2 2023 presentation

Q3 2023 - Finance Espen Schie, CFO

Q3 YoY 53% strong growth, quarterly seasonal effects as anticipated

• Total revenues were CAD 9.1 million, a +53% increase over same period last year
  • QoQ lower revenue from materials due to Q3 vacation seasonality in North America and Europe
  • Revenue YTD at CAD 29.5 million, an increase by CAD 9.5 million or +47% over same period last year
  • Materials revenue in Q3 2023 was CAD 5.2 million, a 25% increase from Q3 2022
  • Systems revenue at CAD 3.8 million, 121% increase year-over-year, reflecting strong execution of orders on hand
• Adjusted EBITDA¹ at CAD -1.7 million, improved yearover-year by CAD 2.2 million resulting from volume, margins and profitability initiatives
  • Adjusted EBITDA YTD¹ at CAD -3.6 million, improved by 6.3 million year-over-year
• Continued focus on profitability and cash improvement

Adjusted EBITDA improved CAD 2.2 million YoY from Q3 2022

Adjusted EBITDA - bridge

Q3 2023 vs Q3 2022 in CAD million

• +2.2 Systems revenue was a significant contributor above last year (+121%), together with strong margins
  • Materials revenue was positive over same quarter last year (+25%)
  • Personnel expenses increased over the same period last year due to salary increase
  • Other operating expenses include a 0.1 negative FX effectin Q3
  • Adjusted EBITDA improved by CAD 2.2 million YoY to CAD -1.7 million
  • Adjusted EBITDA YTD improved by CAD 6.3 million YoY to CAD -3.6 million
  • Maintaining cost control while scaling revenue and managing inflationary cost increases remains our focus

Concluding remarks Luc Dionne, CEO

Unique IP protected technology, providing superior solutions in the market, and steady business

• Continued sale of systems for R&D and production of advanced materials not competing in Tekna's current material segments
• Growing demand for PlasmaSonic in hypersonic and space industry

Systems Additive materials

Reliable provider of high-quality materials for additive manufacturing

• Market expected to grow significantly over the next years
• Target to at least follow the industry growth and keep our market share
• Sticky business model with high barriers of entry and 80% recurring revenue

Microelectronics

Exponential growth in demand expected towards 2030. Tekna well placed and in dialogue with the major MLCC players

Market outlook; short to medium term

• Re-energized global interest in developing, testing and manufacturing novel materials: Industrial and Academic
• Emergence of new industrial segments : Space tourism, Satellite Internet & Networks & Strategic Defense
• Need for better performing products enabled by novel materials is driving an increase in demand for Tekna's research scale plasma units
• Parts of strong pipeline already converted to backlog carrying through 2023 and into 2024
• Pipeline of potential PlasmaSonic orders for 2024 developing according to plan
• Growing market with increasing number of OEMs now operating at an industrial scale
• Break-through in use of titanium powders in production for metal injection molding and binder jetting applications with potential for large volume manufacturing
• Increased factory output rate will continue to translate into increased sales throughout the year

Strong and consistent top line growth and bottom-line improvement

• Revenue growth of 53% and adjusted EBITDA improved by CAD 2.2 million compared to Q3 2022 (same EBITDA improvement as last quarter)
• Revenue YTD improved by CAD 9.5 million to CAD 29.5 million, 47% year over year
• Adjusted EBITDA YTD improved by CAD 6.3 million year over year
• Order intake of CAD 10.4 million in the quarter, with several significant wins especially in Systems
• Order backlog supporting a significant revenue growth for 2023 compared to 2022
• Reiterating a substantial improvement of margins in 2023 compared to 2022, supported by increased revenue and organizational productivity

Consolidated financial statements
Income statement	27
Other comprehensive income	27
Balance sheet	28
Equity	29
Cash flow	30

Notes to the Consolidated Financial Statements 31

Note 1 Confirmation of financial framework Note 2 Key accounting policies Note 3 Revenue from contracts with customers

Alternative Performance Measures 33

Appendix Q3 Financial Statements

2

5

Amounts in CAD 1000		Note 2023 Q3 YTD	2023 Q3	2022 Q3 YTD	2022 Q3
Revenues	3	29,498	9,068	20,047	5,908
Other income		61	15	410	5
Materials and consumables used		16,154	5,598	12,664	4,113
Employee benefit expenses		12,824	4,148	11,811	3,849
Other operating expenses		4,158	1,070	8,392	2,888
EBITDA		-3,576	-1,733	-12,410	-4,938
Depreciation and amortisation		3,159	1,037	2,914	928
Net operating income/(loss)		-6,735	-2,770	-15,324	-5,866
Share of net income (loss) from associated companies and joint ventures		-1,310	-567	-1,072	-311
Finance income		-25	-24	-565	20
Finance costs		730	403	386	139
Profit/(loss) before income tax		-8,799	-3,765	-17,347	-6,296
Income tax expense		100	100	114	114
Profit/(loss) for the period		-8,899	-3,865	-17,461	-6,410
Attributable to equity holders of the company		-8,506	-3,702	-16,874	-6,173
Attributable to non-controlling interests		-393	-163	-587	-236
Basic earnings per share		-0.07	-0.03	-0.13	-0.05
Diluted earnings per share		-0.07	-0.03	-0.13	-0.05

CONSOLIDATED STATEMENT OF INCOME CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

Amounts in CAD 1000	Note 2023 Q3 YTD	2023 Q3	2022 Q3 YTD	2022 Q3
Items that may be reclassified to statement of income
Exchange differences on translation of foreign operations	160		6 458	34
Items that may be reclassified to statement of income	160		6 458	34
Items that will not be reclassified to statement of income
Exchange differences on translation of foreign operations	-		- -	-
Items that will not be reclassified to statement of income	-		- -	-
Other comprehensive income/(loss) for the period, net of tax	160		6 458	34
Total comprehensive income/(loss) for the period	-8,739	-3,859	-17,003	-6,376
Attributable to equity holders of the company	-8,351	-3,696	-16,428	-6,139
Attributable to non-controlling interests	-387	-163	-575	-236

Consolidated revenues for the Tekna Group in Q3 2023 were CAD 9.1 million, an increase of 53% over the same quarter last year (CAD 5.9 million). Revenues for YTD Q3 2023 have increased by CAD 9.5 million and 47 % compared to the same period last year.

Revenues for Systems, Spare parts and Other increased by 121% compared to Q3 2022. Revenues for Materials increased by 25% compared to the same period last year.

Contribution margin in Q3 2023 was CAD 3.5 million corresponding to 38 percent of revenues. In the same period last year, the contribution margin was 30 percent. The increased margins are a result of higher margins in the Systems business, due to execution of a strong order backlog.

Loss for Q3 2023 was CAD 2.8 million, an improvement of CAD 2.5 million over the same period last year. Part of the improvement is due to CAD 1 million of non-recurring legal costs incurred in Q3 2022.

CONSOLIDATED BALANCE SHEET

Amounts in CAD 1000	30.09.2023	31.12.2022
Non-current assets
Property, plant and equipment	22,312	19,240
Intangible assets	7,985	8,537
Associated companies and joint ventures	-673	579
Non-current receivables	5,397	5,339
Deferred tax assets	-	-
Total non-current assets	35,022	33,696
Current assets
Inventories	20,013	20,592
Contract assets	1,794	167
Trade and other receivables	10,005	7,880
Cash and cash equivalents	12,192	11,364
Total current assets	44,005	40,003
Total assets	79,026	73,699

Equity ratio at the end of September 2023 was 56.5 percent compared to 72.5 percent at the end of 2022.

Borrowings at the end of September 2023 was CAD 24.4 million, including CAD 20.5 million owed to Arendals Fossekompani ASA.

Total cash and cash equivalents at the end of September 2023 was CAD 12.2 million versus CAD 13.9 million at the same time last year (September 30, 2022)

Amounts in CAD 1000	30.09.2023	31.12.2022
Equity
Share capital and share premium	494,956	494,956
Other reserves	-449,286	-440,934
Capital and reserves attributable to holders of the company	45,670	54,022
Non-controlling interests	-996	-609
Total equity	44,674	53,413
Non-current liabilities
Borrow ings	24,378	4,119
Lease liabilities	862	1,161
Deferred tax liabilities	-	-
Total non-current liabilities	25,240	5,280
Current liabilities
Bank loan	-0	1,197
Lease liabilities	533	459
Trade and other payables	3,267	7,852
Provision for w arranties	130	130
Contract liabilities	1,939	2,647
Other current liabilities	2,745	2,189
Borrow ings short-term portion	497	532
Total current liabilities	9,112	15,006
Total liabilities and equity	79,026	73,699

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Attributable to equity holders of the Company
Amounts in CAD 1000	Share capital and share premium	Other reserves	Total	Non controlling interests	Total equity
Balance at 1 January 2022	494,957	-419,059	75,897	211	76,109
Profit/(loss) for the period mm		-16,874	-16,874		-587 -17,461
Other comprehensive income/(loss)		446	446	12	458
Balance at 30 September 2022	494,957	-435,487	59,469	-364	59,106

	Attributable to equity holders of the Company
Amounts in CAD 1000	Share capital and share premium	Other reserves	Total	Non controlling interests	Total equity
Balance at 1 January 2022	494,956	-419,058	75,899	211	76,109
Profit/(loss) for the period	-	-21,688	-21,688		-829 -22,517
Other comprehensive income/(loss)	-	-187	-187	9	-178
Balance at 31 December 2022	494,956	-440,934	54,022	-609	53,413

	Attributable to equity holders of the Company
Amounts in CAD 1000	Share capital and share premium	Other reserves	Total	Non controlling interests	Total equity
Balance at 1 January 2023	494,956	-440,934	54,022	-609	53,413
Profit/(loss) for the period	-	-8,506	-8,506	-393	-8,899
Other comprehensive income/(loss)	-	154	154	6	160
Balance at 30 September 2023	494,956	-449,286	45,670	-996	44,674

CONSOLIDATED STATEMENT OF CASH FLOWS

Amounts in CAD 1000	2023 Q3 YTD	2023 Q3	2022 Q3 YTD	2022 Q3
Cash flow from operating activities
Net profit/(loss)	-8,899	-3,865	-17,461	-6,410
Depreciation, amortization and impairment	3,159	1,037	2,914	928
Variation in deferred taxes	-	-	-	-
Interest accretion on LT debt	258	86	233	83
Discounted value of long-term loan	-	-	-399	-
FX variation on long-term loan	-	-	-	-
(Gain)/Loss from sales of assets	-	-	-	-
Share of results from associated companies and joint ventures	1,310	567	1,072	311
Total after adjustments to profit before income tax	-4,172	-2,175	-13,640	-5,088
Change in Inventories	578	192	-4,695	-1,387
Change in other assets	-3,810	1,470	-1,409	2,125
Change in other liabilities	-4,736	-1,616	1,058	228
Total after adjustments to net assets	-12,140	-2,129	-18,686	-4,122
Net cash from operating activities	-12,140	-2,129	-18,686	-4,122
Cash flow from investing activities
Proceeds from the sales of PPE	-	-	-	-
Purchase of PPE and intangible assets	-5,680	-1,145	-4,218	-1,327
Other investing activities	-		-646	0
Purchase of shares in subsidiaries	-	-	-	-
Net cash flow from investing activities	-5,680	-1,145	-4,864	-1,327

Amounts in CAD 1000	2023 Q3 YTD	2023 Q3	2022 Q3 YTD	2022 Q3
Cash flow from financing activities
Proceeds from issue of shares	-	-	-	-
Proceeds from issue of shares in THC	-	-	-42	-
Increase (decrease) of bank loan	-1,197	0	-3,273	-1,270
New loan	20,803	10,398	2,704	-
Repayment of loan	-633	-208	-200	-63
Repayment of lease liabilities	-427	-139	-665	-135
Net cash flow from financing activities	18,545	10,051	-1,476	-1,468
Net increase in cash and cash equivalents	725	6,777	-25,027	-6,918
Cash and cash equivalents at the beginning of the financial year	11,364	5,424	38,649	20,798
Effects of exchange rate changes on cash and cash equivalents	103	-9	296	38
Cash and cash equivalents at end of the period	12,192	12,192	13,918	13,918

Net cash flow from operating activities was negative CAD 2.1 million in Q3 2023, including a reduction of CAD 2.1 million of trade receivables and a reduction of CAD 1.2 million in payables. Corresponding cash flow in Q3 2022 was negative CAD 4.1 million.

Net cash flow from investing activities was negative CAD 1.1 million in Q3 2023, mainly due to purchase of property, plant and equipment, compared with negative CAD 1.3 million in the same period last year.

Net cash flow from financing activities was positive CAD 10.1 million in Q3 2023, of which an increase of CAD 10.4 million in new financing and a decrease of CAD 0.3 million in repayment of loan and lease liabilities. In Q3 2022, the comparable cash flow was negative CAD 1.5 million.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Note 1 | Confirmation of financial framework

The financial statements for the quarter have been prepared in accordance with IAS 34 Interim Financial Reporting. The report does not include all the information required in full annual financial statements and should be read in conjunction with the consolidated financial statements for 2022.

Note 2 | Key accounting policies

The accounting policies for 2023 are described in the Annual Report for 2022. The financial statements have been prepared in accordance with EU-approved IFRS and associated interpretations, as well as the additional Norwegian disclosure requirements pursuant to the Norwegian Accounting Act and stock exchange regulations and rules, applicable as at 31 December 2022. The same policies have been applied in the preparation of the interim financial statements for 2023.

The figures are presented in CAD rounded to the nearest thousand. As a result of rounding adjustments, amounts and percentages may not add up to the total.

Note 3 | Revenue from contracts with customers

Accounting principles and information related to external customers are described in note 1.

Disaggregation of revenue from contracts with customers

2023 Q3 YTD	Systems &		Spare	Other	Total
Amounts in CAD 1000	Equipment Materials		parts
Revenue recognized at a point in time	-	19,121	851	360	20,331
Revenue recognized over time	9,167	-	-	-	9,167
Revenue from external customers	9,167	19,121	851	360	29,498
Contribution margin	5,867	6,550	567	360	13,344
Contribution margin %	64.0%	34.3%	66.6%	100.0%	45.2%
Revenue from external customers specified pr geographical area:
North America	6,460	7,767	426	181	14,833
Europe	1,392	9,269	425	181	11,266
Asia	1,315	2,085	0	0	3,399
Total	9,166	19,121	851	361	29,498

2023 Q3	Systems &		Spare	Other	Total
Amounts in CAD 1000	Equipment Materials		parts
Revenue recognized at a point in time	-	5,218	291	71	5,579
Revenue recognized over time	3,488	-	-	-	3,488
Revenue from external customers	3,488	5,218	291	71	9,068
Contribution margin	1,963	1,273	164	71	3,470
Contribution margin %	56.3%	24.4%	56.3%	100.0%	38.3%
Revenue from external customers specified pr geographical area:
North America	2,193	1,838	146	35	4,211
Europe	846	2,752	145	36	3,779
Asia	449	628			1,077
Total	3,488	5,218	291	71	9,068

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

Disaggregation of revenue from contracts with customers (continued)

2022 Q3 YTD	Systems & Equipment Materials		Spare parts	Other	Total
Amounts in CAD 1000
Revenue recognized at a point in time	-	14,204	1,109	166	15,479
Revenue recognized over time	4,568	-	0	-	4,568
Revenue from external customers	4,568	14,204	1,109	166	20,047
Contribution margin	1,762	5,053	403	166	7,383
Contribution margin %	38.6%	35.6%	36.3%	100.0%	36.8%
Revenue from external customers specified pr geographical area:
North America	590	5,641	555	83	6,868
Europe	-	7,186	555	83	7,823
Asia	3,978	1,377	-	-	5,355
Total	4,568	14,204	1109	166	20,047

2022 Q3	Systems &		Spare	Other	Total
Amounts in CAD 1000	Equipment Materials		parts
Revenue recognized at a point in time	-	4,165	427	38	4,630
Revenue recognized over time	1,278	-	0	-	1,278
Revenue from external customers	1,278	4,165	427	38	5,908
Contribution margin	583	979	194	38	1,794
Contribution margin %	45.6%	23.5%	45.6%	100.0%	30.4%
Revenue from external customers specified pr geographical area:
North America	395	1,876	213	19	2,503
Europe	-	1,894	213	19	2,126
Asia	883	395	-	-	1,279
Total	1,278	4,165	427	38	5,908

DEFINITIONS Alternative Performance Measures

Tekna presents alternative performance measures as a supplement to measures regulated by IFRS. The Group considers these measures to be an important supplemental measure for investors to understand the Groups' activities. They are meant to provide an enhanced insight into the operations, financing, and future prospects of the company.

These measures are calculated in a consistent and transparent manner and are intended to provide enhanced comparability of the performance from period to period. The definitions of these measures are as follows:

• Backlog: Sales order intake awaiting completion or awaiting call off by customer (release) in case of blanket orders.
• Contribution Margin: Is defined as revenues less direct variable costs such as direct labour, raw material, electricity, gas consumption, commissions, freight, customs and brokerage fees, laboratory supplies and packaging. The Contribution Margin is used to evaluate performance of production before any allocation of fixed manufacturing costs.
• Contribution Margin %: is defined as the Contribution Margin divided by revenues in the period.
• EBITDA: Is defined as the profit/(loss) for the period before income tax expense, finance costs, finance income, share of net income (loss) from associated companies and joint ventures, depreciation, and amortization.
• EBITDA Margin: Is defined as EBITDA as a percentage of revenues.
• Adjusted EBITDA: Is defined as the profit/(loss) for the period before income tax expense, finance costs, finance income, share of net income (loss) from associated companies and joint ventures, depreciation, and amortization adjusted for certain special operating items affecting comparability. These special operating items include listing costs, adjustments for expenses related to cloud-based software previously recorded in the balance sheet (retrospective implementation accounting for cloud-based services for the years 2021, 2020 and 2019) and litigation fees. 32
• Adjusted EBITDA Margin: Is defined as Adjusted EBITDA as a percentage of revenues.
• EBIT: Is defined as the profit/(loss) for the period before income tax expense, finance costs, finance income, share of net income (loss) from associated companies and joint ventures.
• EBIT Margin: Is defined as EBIT as a percentage of revenues.
• Adjusted EBIT: Is defined as the profit/(loss) for the period before income tax expense, finance costs, finance income, share of net income (loss) from associated companies and joint ventures adjusted for certain special operating items affecting comparability. These special operating items include listing costs, adjustments for expenses related to cloudbased software previously recorded in the balance sheet (retrospective implementation accounting for cloud-based services for the years 2021, 2020 and 2019), and litigation fees.
• Adjusted EBIT Margin: Is defined as Adjusted EBIT as a percentage of revenues. Adjusted EBIT Margin is a non-IFRS financial measure that the Group considers to be an APM, and this measure should not be viewed as a substitute for any IFRS financial measure.
• Long Term Debt/Equity Ratio: Is defined as total non-current liabilities divided by total equity. Long Term Debt/Equity Ratio is a non-IFRS financial measure that the Group considers to be an APM, and this measure should not be viewed as a substitute for any IFRS financial measure.

Please see the Annual Report for a further detailed description of the Group's alternative performance measures.

Alternative Performance Measures

(continued)

Amounts in CAD thousands	2023 Q3 YTD		2023 Q3 2022 Q3 YTD	2022 Q3
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Revenues	29,498	9,068	20,047	5,908
Materials and consumables used	16,154	5,598	12,664	4,113
(b) Contribution margin	13,344	3,470	7,383	1,794
(c) Revenues	29,498	9,068	20,047	5,908
Contribution margin % (b/c)	45.24%	38.26%	36.83%	30.37%

	2023 Q3 YTD		2023 Q3 2022 Q3 YTD	2022 Q3
Amounts in CAD thousands	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Net profit/loss	-8,899	-3,865	-17,461	-6,410
Income tax expense (income)	-100	-100	-114	-114
Finance costs	730	403	386	139
Finance income	25	24	565	-20
Share of net income (loss) from associated companies and joint ventures	1,310	567	1,072	311
Depreciation and amortization	3,159	1,037	2,914	928
(a) EBITDA	-3,576	-1,733	-12,410	-4,938
Legal and listing cost	-	-	2,523	1,037
(b) Adjusted EBITDA	-3,576	-1,733	-9,887	-3,901
(c) Revenues	29,498	9,068	20,047	5,908
EBITDA margin (a/c)	-12.12%	-19.11%	-61.91%	-83.59%
Adjusted EBITDA margin (b/c)	-12.12%	-19.11%	-49.32%	-66.03%

	2023 Q3 YTD		2023 Q3 2022 Q3 YTD	2022 Q3
Amounts in CAD thousands	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Net profit/loss	-8,899	-3,865	-17,461	-6,410
Income tax expense (income)	-100	-100	-114	-114
Finance cost	730	403	386	139
Finance Income	25	24	565	-20
Share of net income (loss) from associated companies and joint ventures	1,310	567	1,072	311
(a) EBIT	-6,735	-2,770	-15,324	-5,866
Legal and listing cost	-	-	2,523	1,037
(b) Adjusted EBIT	-6,735	-2,770	-12,801	-4,829
(c) Revenues	29,498	9,068	20,047	5,908
EBIT margin (a/c)	-22.83%	-30.55%	-76.44%	-99.30%
Adjusted EBIT margin (b/c)	-22.83%	-30.55%	-63.86%	-81.74%

Amounts in CAD thousands	2023 Q3 YTD	30.09.2023	30.09.2022	30.09.2022
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
(a) Total non-current liabilities	25,240	25,240	5,197	5,197
(b) Total equity	44,674	44,674	59,106	59,106
Long Term Debt/Equity Ratio (a/b)	0.56	0.56	0.09	0.09

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