CrayoNano Q2 2023 Results Presentation

23 August 2023

Disrupting the fast-growing market for disinfection

Jo Uthus CEO

Jens Kielland CFO

Q2 Operational Update

About CrayoNano

Global presence with headquarters in Norway and subsidiary in Taiwan
Pioneers in nanotechnology-based semiconductor components
Strong technology IP portfolio with 260+ patents
Enabling Environmental, Social and corporate Governance (ESG) solutions with our partners
Our first product line of radically efficient UV-C LEDs are vital components for the fast-growing disinfection markets
Fab-lite business model utilising global supply chain

Highlights

Private placements complete, strategy post capital raise being implemented

Private placement completed in April, raising approx. NOK 125 million in gross proceeds
Subsequent offering completed in June, raising a further NOK 2.7 million
New Chief Technology Officer hired in Taiwan, bringing 25 years of industry experience
R&D and manufacturing operation in Taiwan fully enabled

Focus on sales funnel and market reach

Strong demand for the powerful CrayoLED™ UV-C LED, particularly in the water segment
Continue to work with LEDiL, a renowned manufacturer of optical solutions
Opening high-growth India water disinfection market through Vallalar Energy Solutions

First commercial frame contract signed

• First commercial frame contract signed in August with AquiSense – global leader and tier-1 system integrator in UVC-LED systems for water, air, and surface disinfection

UV-C LED market estimated growth of 40% CAGR to \$2.5bn

UV-C disinfection dates back to 1910, and used on a bigger scale since the mid 1950s

emitted

Note: Segment splits are management estimates based on the Yole Development Report for 2020 | Source: Yole Development Report (2021) and management estimates Q2 2023 Financial Results CrayoNano AS | All rights reserved. Copyright 2023. Do not distribute without consent.

Key milestone reached

Standard customer qualification and design-in process

First frame contract with AquiSense Technologies

One of the largest system integrators in the water disinfection market

CrayoLEDTM H-series UV-C LED tested and validated against AquiSense's high-quality standards for use in water disinfection systems
Initial contract value NOK 4m
Opportunity to increase

Strong customer demand continues

Strong growth in interest from customers in water segment particularly

Strong interest in Q2 from customers
Conversion of interest (leads) to opportunities shows real demand
Managing customer expectations of qualification phase (6-12 months)
Continued ramp up of sales and sales support activities to convert higher interest
AquiSense frame contract signed in Q3

*AquiSense frame contract was signed in Q3.

Building a network of business enablers

Continue working with Laser Components

Sven Schreiber, CSO at LASER COMPONENTS Germany - "This is exactly the kind of cutting-edge technology that our customers expect in our portfolio. CrayoNano's trust is proof that our long-standing commitment to UV LED technology is paying off."

New distributor agreement with Vallalar Energy Solutions

Vallalar Energy Solutions (VES) is a UV-C lighting consulting firm established in April 2022, based in Chennai, Tamilnadu State, India. With 18 years of experience in OEM/Industrial/KAM sales and marketing with leading corporate companies, VES specializes in providing UV-C lighting solutions to major OEMs in the air and water segments, as well as major dealers across India.

Commercial frame contract signed with AquiSense

AquiSense Technologies is the global leader in UV-C LED systems design and manufacture. They work with leading LED manufacturers to evaluate their devices and then design efficient disinfection products.

Partner with LEDiL to reduce design-in time and offer integrated high-quality optics solutions LEDiL is an industry leading optics supplier to the world's largest lighting manufacturers. An extensive product range, innovative solutions, close cooperation with leading LED manufacturers and customer-oriented service have enabled LEDiL to become the market leader in its field.

Taiwan: the next step in scaling to high-volume manufacturing

As part of our planned scaling of CrayoNano, we have moved forward with our pivot to Taiwan to focus on high-volume manufacturing:

Newly hired Chief Technology Officer based in Taiwan Ryan Chuo
Increased investment in Taiwan R&D capabilities to scale to high-volume manufacturing, according to plan
Divested Lab function in Trondheim, Norway

Norway Taiwan

Q2 Financial Update

Q2 2023 Financial results

Profit and loss Comments

NOK millions

	Q2-23	Q2-22	YTD-23	YTD-22
Sales revenue	0.0	0.0	0.2	0.0
Other revenue	0.8	2.0	2.6	5.0
Revenue	0.9	2.0	2.8	5.0
COGS Payroll and related costs Other operating costs EBITDA	0.0 6.9 8.1 -14.2	0.0 9.1 9.1 -16.2	0.1 20.0 18.3 -35.6	0.0 18.6 15.9 -29.4
Depreciation & amortization EBIT	2.0 -16.3	1.6 -17.8	4.2 -39.9	3.5 -32.9
Net financial items Net profit before tax	-0.2 -16.1	-0.5 -18.2	-0.8 -40.7	-0.7 -33.6

Sales revenue of NOK 32k in the quarter from sample shipments to prospective customers
Total operating cost decreased to NOK 15.0m, a reduction of NOK 8.3m (36%) compared with the previous quarter, and NOK 3.2m (18%) below the same quarter last year
EBITDA of NOK -14.2m, an improvement of NOK 7.3m compared with the previous quarter, and NOK 2.0m compared to the same period last year

Investing for growth while controlling costs

Cash flow from operations Net change in cash and cash equivalents

Cash flow from operations of NOK -25.8m in the quarter, a slightly higher cash burn than the first quarter and broadly in line year-on-year
- Continued to build strategic inventory which increased by NOK 2.8m in the quarter
Net cash up NOK 57.1m quarter-on-quarter as we completed the private placement, offset by negative cash flow from operations
Cash balance at end-Q2 of NOK 67.2m

Secured credit facility for working capital financing

CrayoNano secured a credit facility of NOK 12m with SpareBank 1 SMN in July 2023
The new facility is established for the purpose of financing CrayoNano's working capital needs
Current inventory value at NOK 8m, receivables expected to increase as we start our sales generation
Strong support from our banking partner, the new facility is supported by a guarantee from Eksfin, and can be increased as we further scale our commercial operations

Strong financial position to support commercial activities

§ Completed private placement of approx. NOK 125m in Apr'23
§ Subsequent offering of NOK 2.7m to existing shareholders who didn't participate in the private placement in Jun'23
§ Board stated intention to pursue listing on Euronext growth within 12 months after private placement
§ Established credit facility of NOK 12m with SpareBank 1 SMN for working capital financing in Jul'23
§ Facility can be increased based on scale-up of commercial activities

Equity Credit Soft funding

§ Strong access to public funding has been important to finance R&D activities in the company
§ EIC funding completed this year, ongoing funding with Norwegian Research council (NRS)
§ Continue to pursue options for R&D financing through public funding sources

Strong financial position to scale commercial activities and accelerate revenue generation

Q2 Key Takeaways

Q2 key takeaways

Ongoing commercial engagement

Operational readiness and supply chain

Funding our growth

First commercial frame contract agreed with market leader AquiSense Strong interest in the quarter from customers in the water market segment Continue to bring additional partners towards design wins

Post capital raise business plan being implemented by transitioning R&D operations from Norway to Taiwan New Chief Technology Officer hire in Taiwan New strategic partnership agreed to support growth in India

Continued assessment of long-term capital needs for successful growth Built strategic inventory to support expected demand in the months to come Agreed asset backed lending facility covering part of working capital requirements

Appendix

Profit and loss (unaudited)

(Figures in NOK thousands)	Q2 2023	Q2 2022	FY 2022
Sales revenue	32	0	438
Other revenue and public grants	828	2 065	7 559
Total revenues	859	2 065	7 997
Cost of goods sold	31	0	236
Payroll and related costs	6 920	9 076	34 993
Other operating costs	8 098	9 149	41 378
EBITDA	-14 190	-16 161	-68 611
Depreciation	2 129	1 594	7 253
EBIT	-16 319	-17 755	-75 864
Net financial items	234	-485	- 633
Net profit before tax	-16 085	-18 240	-76 497
Tax expense	-2 997	-4 386	-17 145
Net profit (loss)	-13 088	-13 854	-59 351
# shares in 1000	37 524	28 401	28 401
Earnings pr share (NOK)	-0.35	-0.49	-2.09

Note: P&L presented is net of capitalized R&D

Balance sheet (unaudited)

(Figures in NOK thousands)	Q2 2023	Q2 2022	FY2022
Assets
Development, patents and licenses	66 754	61 202	66 129
Deferred tax assets	51 501	33 681	43 054
Tangible fixed assets	11 867	12 896	12 735
Financial fixed assets	1059	1 059	1 059
Total non-current assets	131 181	108 838	122 977

Current assets
Inventory	7 936	0	2 087
Trade and other receivables	14 135	12 862	16 896
Cash and cash equivalents	67 233	58 047	10 238
Total current assets	89 305	70 908	29 221
Total assets	220 486	179 747	152 199

Equity and liabilities
Equity
Share capital	750	568	568
Share premium account	233 326	234 399	105 786
Additional paid-in capital	2 596	2 596	2 596
Other equity	-14 946	0
Retained earnings	-32 252	-95 081	0
Total equity	189 475	142 483	108 950

Liabilities
Convertible loans	0	0	0
Liabilities to finance institutions	6 053	9 080	8 073
Trade payables	3 054	3 709	9 239
Government charges	1 253	2 666	2 277
Other liabilities	20 650	21 809	23 659
Total liabilities	31 011	37 264	43 249
Total equity and liabilities	220 486	179 747	152 199

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Disrupting the fast growing markets for disinfection

CrayoNano AS

Sluppenvegen 6, Trondheim, Norway +47 72 92 98 60 [email protected]

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