Tekna Holding ASA

Investor Presentation • May 5, 2022

Q1 2022 financial results

Luc Dionne, CEO Tekna Holding AS

May 5, 2022

Disclaimer

This presentation has been prepared by Tekna Holding AS ("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 AS ("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.

Q1 2022 highlights

Total Revenues CAD 6.5 million 17 % decrease from Q1 2021

Adjusted EBITDA CAD – 2.8 million CAD 3.4 m decrease from Q1 2021

Materials revenues CAD 4.6 million 5% growth from Q1 2021

Materials backlog CAD 10.8 million 54% growth from Q1 2021

Advanced materials

• Strong demand with CAD 6.1m order intake in Q1'22 for materials, increasing backlog by 54% YoY, more capacity would have allowed for a higher revenue
• Planned work in Q1 to increase 70% materials production capacity by year-end 2022, with favorable impact on revenue and profit per machine
• Adjusted EBITDA reflecting lower systems revenues and front loading of resources in support of strategy

Strategic development

• Projects with partners in Printed Electronics and Energy Storage ongoing, with important milestones coming up later in the year, customer development schedules could introduce some delays
• LG Chem joint development agreement developing positively with on-going trials.
• Aiming to complete OSE listing in 2022

Developing resilience 'across the board': workforce, supply-chain, operationally, technology

Report includes progress report on EU taxonomy and climate-related risk reporting (TCFD) Science-based target: 50% reduction in scope 1 & 2 Full report on: Tekna.com/esg production close to customers reducing transportation and encouraging reuse of material 94% 95% 96% renewable energy share in scope 2 (electricity) worldwide of gases involved in the manufacturing of materials are reused in the process (closed loops) of 2021 revenues deemed eligible in accordance with EU taxonomy Changing the world one particle at a time …

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Tekna in brief

Tekna is a world-leading provider of advanced materials

Tekna produces the world's highest quality micro and nano materials

Our two revenue generating segments

Sale of advanced materials

Tekna uses proprietary technology to produce world-leading materials. Due to its superior characteristics and rigorous qualifying processes, customers become dependent on Tekna, creating strong customer stickiness

Sale of R&D systems

In addition to own R&D, Tekna sells research systems to research institutions as well as OEMs. This helps financing our own research and improving our technology.

Advanced materials markets in different stages

Addressable markets estimates1

1Sources: SmarTech – 3D Printing and Additive Manufacturing reports, Wohlers Associates – 3D Printing and Additive Manufacturing Global State of the Industry, ARK Investment management – Big Ideas 2021, Cairn Energy Research Advisors – SI Marketscape and opportunities, company estimates

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Our customers

Additive Manufacturing Material sales by Industry Sector

Large base of blue-chip customers1 ~200 customers

¹ Current and targeted customers

Top 3 global supplier

Sustainability in principle: matching circularity and re-shoring trends

The circular loops within Tekna's own operations are well-established (light blue arrow)

Focus now shifting towards building sustainable loops with our customers in for instance packaging and revalorizing waste material

Read more in our 2021 ESG report

Case study: matching circularity and re-shoring trends in practice

About the customer

• Original Equipment Manufacturer of medical devices, located in Europe
• Operates 3D printing machines
• Annual consumption CAD 5m – CAD 6m
• Implementing re-shoring strategy
  • Manage risks related to supply chain
  • Reduce environmental impact

Customer request

• European feedstock source
• European manufacturing of powder
• Repurpose outdated powder back to reusable powder
• Manage customer yield loss (transform scrap parts back to raw material)

Tekna has the solution

Macon France, factory

• Qualify European feedstock (raw material) supplier to Customer specs
• Use Tekna technology to repurpose customer's outdated powders
• Negotiate with European feedstock source to buy back high value scraps

Q1 Financials

Revenue and EBITDA by quarter – five last quarter

• Three quarters of consecutive growth in revenues

• Materials revenues stable YoY, expected to increase progressively throughout the year
• Systems deliveries reduced, consequential to global travel restrictions, also affecting the adjusted EBITDA
• EBITDA marked by increase in overhead in support of our strategy, developing printed-electronics, energy storage and upfront investments in staffing and R&D

Advanced Materials | Gaining markets share, building order backlog

• Order backlog growing, challenging production to meet increasing demand
• Tekna's advanced materials are gaining market share, with new orders above CAD 6m for two consecutive quarters
• Tekna is outgrowing industry pace

Expanding capacity to keep up with additive manufacturing materials demand

Increasing capacity to meet strong demand

Immediate and ongoing Increase machine performance

No significant capex required and limited effect on overhead

Maximize working hours 24/7 Increase feed rate Increase yield Reduce unplanned downtime

↑ Margin improvements ↑ Capital efficient

Subsequent actions Add more machines

Increasing capacity to meet strong demand

• From 2015 to 2021 our systematic approach to machine performance improvement has resulted in 140% higher output per machine
• Q2 2022 marks the start of the implementation phase following an 18-month R&D cycle aimed at further increasing machine output for prime selling material
• Progressive upgrade & performance improvement roll-out on production machines are planned in 2022, expected to result in 70% increase in production capacity from Q4 2021
• Upgrades will include software and hardware enhancement on the machines and on auxiliary systems, and recruitment of additional operators

Planned total output increase by YE 2022

Progressive upgrade & performance improvement

Note: * The machines required production stop while being upgraded Increase in machine output does not correlate to a similar increase in company revenue

Developing materials for printed electronics and energy storage

Ongoing product qualification programs - 80nm powder

mer Custo	Country	Account Qualification			Product Qualification						1st Order Target
1	Korea												TBD
2	Korea												2H2022
3	APAC												2H2022
4	APAC												TBD
5	APAC												1H2023
6	APAC												1H2023
7	APAC												TBD
8	China												TBD

Completed Ongoing

Timing of projects is affected by customer schedule and will likely result in delays in qualification cycle and volume ramp-up

Currently developing two new products to the portfolio, addressing the same customer base

Recent developments

Customer 2

MLCC printing trials ongoing with Tekna Nickel nano. Feedback expected by end of Q2

Customer 3

Positive feedback regarding Tekna's 80nm powder. Evaluation and print experiments are currently ongoing. Feedback expected by end of Q2. Signalled volume demand of around 40 tons per year in 2024

Customer 4

Positive feedback regarding Tekna's powder size. Ongoing discussions regarding joint R&D to apply Tekna's powder to future generation MLCCs

Energy storage | A structured and patient approach towards a potential game changer

	Raw Material Supplier	Enhancing silicon materials performance	Successful preliminary product performance results showing energy density increasing by 70% from 350 to 600 mAh/g1 New samples produced with industrial pilot will be provided to 150 prospects starting in early Q3
	Anode Composite Manufacturer	Developing high energy density graphite-silicon composite	Leading a 3-way effort, bringing together a major provider of natural graphite and a graphite-silicon composite producer Aim to develop and provide battery manufacturers with ready to use high energy density anode materials. Technical due diligence is expected to start in Q2 2022
Positioning Tekna in all stages of the lithium-ion battery value chain	Battery Manufacturers	Joint development and manufacturing of materials with OEMs	Joint development agreement milestone reached with the approval of plasma pilot-scale unit in January 2022 LG Chem joint development agreement developing positively with on-going trials at LG site

Summary and outlook

Paradigm shifting, robust and relevant strategy

A world in transition

Strategy well aligned

All our segments are relevant to megatrends

Customers continue transition towards new technology Manufacturing sites located near end-users Securing long term supply agreements Sustainable and green production processes

Short term priorities and longer-term ambitions

Short term priority Increase materials production capacity by improving machine performance and adequate factory staffing

Medium term

Adding machines to factories in France and Canada to secure position with key customers and continue to grow market share

Outlook

Strong Market demand and production capacity ramp-up will improve Materials sales onward, but raising trade tensions and global supply chain issues create some transitory uncertainty

Additive manufacturing Printed electronics & Energy storage

Development programs

Continued pursuit of opportunities in printed electronics and energy storage verticals through partnerships with tier-one original equipment manufacturers

Outlook

Market volatility and customer schedule are causing delays in qualification cycles

Tekna's focus and ambitions in developing for the longer term remain unchanged

Ambitions Mid-to-long term

Revenue growth

40-50% organic growth per year

Business mix

Operational EBITDA-margin Towards 25%

Aiming to complete OSE listing in 2022

Changing the world one particle at a time …

Appendix Q1 financials in detail

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Financial Statements

INCOME STATEMENT

CAD m	2022	2021	2021	2021
	Q1	Q4	Q1	FY
Revenue	6.5	6.0	7.8	26.8
Cost of sales	3.7	4.3	3.8	14.9
Gross margin	2.8	1.7	4.0	11.9
Gross margin %	43%	28%	51%	44%
Other income	-0.1	-0.2	0.0	-0.4
Indirect personnel expenses	3.8	3.4	2.9	12.8
Other OPEX	1.9	1.8	0.5 1	4.0
Total other income and OPEX	5.6	5.0	3.4	16.4
Adjusted EBITDA	-2.8	-3.3	0.6	-4.5
Adjusted EBITDA margin %	-43%	-55%	8%	-17%
Non-recurring expenses	0.8	0.4	1.2 1	4.2
EBITDA	-3.6	-3.7	-0.6	-8.7
EBITDA margin %	-55%	-62%	-8%	-32%
Depreciation and amortization	1.2	1.5	0.8 2	3.7
Adjusted EBIT	-4.0	-4.8	-0.2	-8.2
EBIT	-4.8	-5.2	-1.4	-12.4
EBIT margin %	-74%	-87%	-18%	-46%
Equity company loss (income)	0.3	0.4	0.3	1.5
FX variation (Gain) Loss	0.3	0.1 3	0.0	-0.4 3
Finance cost	0.1	0.1 4	0.3	0.7
EBT	-5.5	-5.8	-2.0	-14.2
Provision for income tax	0.0	0.0	0.0	-0.1
Net profit/loss	-5.5	-5.8	-2.0	-14.1

Notes

• 1. An information bulletin was published on the IFRS treatment of configuration and customization costs in connection with implementation of cloud-based software services. The company has implemented this modification retroactively in its financial statements. An adjustment of \$0.4m has been presented as nonrecurring expenses in Q1 2021. Legal fees of \$0.2m have been added to non-recurrent expenses in Q1 2021
• 1. Depreciation and amortization was adjusted by \$0.3m following the formal evaluation of the Purchase price allocation of 2013
• 1. FX variation (Gain) Loss was adjusted by \$0.4m and reclassed to other comprehensive income
• 1. \$1.2m of the currency exchange expense included in the finance cost account was reclassed to the FX variation.

Financial Statements

BALANCE SHEET

Balance Sheet CAD m	31.03.2022	31.12.2021	31.03.2021	Balance Sheet CAD m	31.03.2022	31.12.2021	31.03.2021
ASSETS				LIABILITIES AND EQUITY
Deferred tax assets	0.0	0.0	0.0	Owners' equity	70.9	75.93	85.2
Other intangible assets	9.3	9.2	9.3	Minority interest	0.0	0.2	0.7
Tangible fixed assets	17.1	16.61,3	16.54	Total equity	70.9	76.1	85.9
Investment in equity companies	1.1	1.22,3	1.1
Other long-term receivables	5.6	5.62	5.5	Deferred tax liabilities	0.0	0.0	0.0
Total non-current assets	33.1	32.6	32.4	Leasing obligations	1.3	0.2	0.4
				Other long-term debt	4.3	3.8	30.6
Inventory	16.8	14.41	13.0	Total non-current liabilities	5.6	4.0	31.0
Contract assets Accounts receivable and other	1.8	1.0	1.4
receivables	6.4	5.7	7.9	Current interest-bearing borrowings	2.7	3.9	3.8
Cash and cash equivalents	32.4	38.6	102.1	Current interest-bearing liabilities	0.0	0.0	23.6
Total current assets	57.4	59.7	124.4	Accounts payable	7.7	4.8	9.7
Total assets	90.5	92.3	156.8	Leasing obligations	0.1	0.2	0.2
				Other current liabilities	3.5	3.3	2.6
				Total current liabilities	14.0	12.2	39.9

Notes

1. CAPEX in progress transferred from Inventory \$1.3 m

2. 1. A loan to an equity company totaling \$1.4m is currently presented as part of the Investment in equity companies.
3. 1. Tangible assets and Investment in equity companies adjusted for FX by \$0.3m and \$0.1m respectively. This adjustment affected the owner's equity for the same amount.

Total liabilities and equity 90.5 92.3 156.8

1. A recent information bulletin was published on the IFRS treatment of configuration and customization costs in connection with implementation of cloud-based software services. Tekna has implemented this modification retroactively in its financial statements. An amount of \$1.9m was reversed from fixed assets to equity as of March 31st, 2021.

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Financial statements

CASH FLOW

Cash flow CAD m	2022 Q1	2021 Q1
Net profit	-5.5	-2.0 1
Depreciation and Amortization	1.2	0.8
Tax expense
Net financial items & FX variation	0.0	0.3
Change in inventory, contract assets, receivables, payables and other liabilities	-0.9	-4.6
Share of profit from associates	0.2	0.3
Net cash from operations	-5.0	-5.2
Purchase of PPE and intangible assets	-1.7	-0.7 1
Other Investments activities	0.0	-1.3
Purchase of shares in subsidiaries	0.0	-23.5
Net cash from investing activities	-1.7	-25.5
Cashflow from issuance of stock	0.0	100.5 2
Proceeds from the issuance of shares in subsidiary	0.0	1.3
New long-term borrowings	1.7	0.1
Repayment of long-term borrowings	-0.3	-0.1
Internal loans and borrowings	0.0	30.1
Net change in current interest-bearing debt	-1.2	3.1
Interest paid	0.0	-0.2
Net cash from financing activities	0.2	134.8
Cash flow	-6.5	104.1
FX adjustments	0.3	-4.5 2
Change in cash and cash equivalents	-6.2	99.6
Opening Balance for Cash assets	38.6	2.5
Closing Balance for Cash assets	32.4	102.1

Notes

• 1. Net profit reduced by \$0.3m in application of the IFRS treatment of configuration and customization costs in connection with implementation of cloud-based software services.
• 1. FX adjustment of \$3.7m in the valuation of cashflow from issuance of stock.

Alternative performance measures

Tekna presents alternative performance measures as a supplement to measures regulated by IFRS. The definitions of these measures are as follows:

EBITDA - Earnings before interest, tax, depreciation and amortization, corresponding to "Operating profit (loss) before depreciation, amortization and impairment" in the consolidated income statement

Adjusted EBITDA – EBITDA adjusted for costs related to the IPO and uplisting, nonrecurring legal costs, and IT expenses related to the cloud software IFRS reclassification

EBIT - Earnings before interest and tax, corresponding to "Operating profit (loss)" in the consolidated income statement

Gross profit- Gross profit is net sales revenue minus cost of goods sold

Gross margin - Gross margin is gross profit divided by net sales revenue

Recurring revenues - Period divided by the prior consecutive 12-month Period