Tekna Holding ASA

Earnings Release • Nov 11, 2021

TEKNA HOLDING AS: FINANCIAL RESULTS FOR THIRD QUARTER 2021

TEKNA HOLDING AS: FINANCIAL RESULTS FOR THIRD QUARTER 2021

11.11.2021 07:00:01 CET | Tekna Holding AS | Half yearly financial reports and

audit reports / limited reviews

(Arendal, NORWAY / Sherbrooke QC, CANADA - 11 November 2021) Tekna Holding AS

(Tekna, OSE:TEKNA), the world-leading provider of advanced materials to

industry, increased Additive Manufacturing production capacity in the third

quarter 2021 amid strong global demand and sales accelerating in Europe.

Year-to-date total revenue and materials revenue improved 43% and 40%

respectively over 2020.

The third quarter of 2021 was characterized by:

* CAD 5.6 million revenues (-14%) mainly due to fluctuation in the systems

deliveries

* Materials revenue in Q3 grew 10% from Q3 2020, with 77% of sales generated

from recurring customers

* Total order backlog stood at a solid CAD 12 million, of which CAD 8.0 million

(5.2 million) came from materials, which represents a 57% increase

* Adjusted EBITDA of CAD -1.3 million, compared to break-even in Q3 2020 (due

to Covid grants)

* Additional atomizer began to operate in Canada, which, along with productivity

improvements, increased production capacity by 25% at the end of the quarter.

"While Tekna's Systems revenue posted a decrease in the quarter, the outlook for

Additive Manufacturing, which accounts for approximately 60% of Tekna's total

revenue, remains strong and we're firing on all cylinders to get production

capacity up to meet accelerating demand. Tekna began operating an additional

plasma system in the third quarter that, along with productivity improvements,

will increase capacity by 25%," says Luc Dionne, Tekna Holding's chief executive

officer.

Revenues for the third quarter posted at CAD 5.6 million from CAD 6.5 million

(Q3 2020). The decline is mostly attributable to systems product line revenue

that was 42% lower than the same period last year. These revenues are expected

to return to yearly run-rates in the fourth quarter 2021. Adjusted EBITDA for

the third quarter stood at CAD -1.3 million (CAD 0 million). The variation vs

last year is due to a federal emergency grant received in Q3 2020 (CAD 1

million).

In the Printed Electronics segment, the qualification of customers developed

positively, and Tekna is on track to secure its first commercial customer in

2022. Tekna has initiated talks with industrial scale-up partners in Asia and

gained a new pipeline customer entry in Taiwan. Furthermore, Tekna is pursuing

negotiations to lease a production facility in Sherbrooke, Canada, which would

provide capacity of up to 25 tons of powder annually by 2023.

In the Energy Storage segment, Tekna's development is progressing according to

schedule and industrial-pilot capacity is expected to be ready in early 2022.

Discussions are ongoing with LG Chem on a second potential joint development

agreement involving new research.

"The EV and 5G markets are booming, which is driving the demand for Tekna's

nano-size Silicon and Nickel powders. Therefore, we have initiated discussions

with several major silane manufacturers to secure our long-term supply," said

Dionne.

Also in the third quarter, Tekna launched its PlasmaSonic systems product line

of plasma wind tunnels and integrated diagnostic solutions, targeting civil

aviation in the orbital space and hypersonic flight industry, which has an

estimated size of CAD 270 billion.

"Leveraging our 30 years of expertise in plasma energy and system design, Tekna

PlasmaSonic solutions is able to recreate on Earth the wide range of extreme

temperatures and pressures experienced by spacecrafts travelling in the

stratosphere, at over 5 times the speed of sound. It is an exciting new segment

for us in a rapidly developing industry, in which we see an estimated revenue

potential of up to CAD 250 million over the next 10 years," said Dionne.

"Looking ahead, all the market indicators we are monitoring continue to be

positive and Tekna's ambition to grow 2020 materials revenues of CAD ~13 million

to a production run-rate of CAD ~22 million in 2021 is within reach," Dionne

added.

Tekna will present its financial results for the third quarter 2021 on Thursday

11 November, 2021, at 13:00 CET. The investor presentation will be live streamed

and be hosted by Luc Dionne, CEO of Tekna Holding. The presentation will be held

in English and questions can be submitted throughout the event.

The streaming event is available through: investors/webcast_2021Q3 (tekna.com) -

https://www.tekna.com/investors/webcast-2021q3?hsLang=en

The full report and presentation are available at

https://www.tekna.com/investors

To know more about Tekna's PlasmaSonic systems product line: Tekna PlasmaSonic

product line | Tekna - https://www.tekna.com/plasmasonic

DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to Section

5-12 of the Norwegian Securities Trading Act.

CONTACTS

* Arina van Oost, Investor Relations | VP Corporate Strategic Development &

Innovation, +1 438 885 6330, Investors@tekna.com

ABOUT TEKNA HOLDING AS

Tekna is a world-leading provider of advanced materials to industry,

headquartered in Sherbrooke, Canada. Tekna produces high-purity metal powders

for applications such as 3D printing in the aerospace, medical and automotive

sectors, as well as optimized induction plasma systems for industrial research

and production. With its unique, IP-protected plasma technology, the company is

well positioned in the growing market for advanced nanomaterials within the

electronics and batteries industries. Building on 30 years of delivering

excellence, Tekna is a global player recognized for its quality products and its

commitment to its large base of multinational blue-chip customers.

www.tekna.com - http://www.tekna.com

ATTACHMENTS

Download announcement as PDF.pdf -

https://kommunikasjon.ntb.no/ir-files/17847682/921/1259/Download%20announcement%

20as%20PDF.pdf

2021Q3 presentation_Final.pdf -

https://kommunikasjon.ntb.no/ir-files/17847682/921/1258/2021Q3%20presentation_Fi

nal.pdf