Tekna Holding ASA

Earnings Release • Aug 19, 2021

TEKNA HOLDING AS: FINANCIAL RESULTS FOR SECOND QUARTER AND HALF-YEAR 2021

TEKNA HOLDING AS: FINANCIAL RESULTS FOR SECOND QUARTER AND HALF-YEAR 2021

19.8.2021 07:00:01 CEST | Tekna Holding AS | Half yearly financial reports and

audit reports / limited reviews

(Arendal, NORWAY / Sherbrooke QC, CANADA - 19 August 2021) Tekna Holding AS

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

industry, reported a solid second quarter 2021, with revenues rising 95 percent

to CAD 7.4 million (Q2 2020: 3.8 million), amid growth in recurring powders

sales and a growing customer portfolio.

The second quarter of 2021 was characterized by:

* Increase in revenue to CAD 7.4 million, driving YTD revenues 88 percent above

H1 2020

* Order intake of CAD 9.5 million, raising total backlog by 55 percent to CAD

14.2 million

* Adjusted EBITDA of CAD -1.1 million, compared to CAD -0.2 million in Q2 2020

* 103 percent growth year-on-year in powder revenues to CAD 5.0 million

* 84% growth year-on-year in recurring Materials revenues to CAD 3.5 million

* Two major contract awards announced with Airbus in Additive Manufacturing and

LG Chem in Energy Storage

"Tekna extended positive revenue growth momentum into the second quarter,

posting a 95 percent increase year-on-year, while materials revenue more than

doubled in the period," says Luc Dionne, Tekna Holding's chief executive

officer. "I am proud to say that we have already secured 88 percent of the

Company's full-year revenue target. While we are exercising a reasonable level

of prudence in our spending, Tekna's focus remains on the top line, setting up

the necessary infrastructure and resources to scale the Company and achieve its

growth ambitions."

Revenues for the second quarter reached CAD 7.4 million, an increase of CAD 3.6

million (Q2 2020). Both business segments - materials and systems - recorded

substantial gains, over 100 percent and 75 percent respectively, compared to the

second quarter 2020. This performance is attributable to the recovery of the

markets following the COVID crisis, the growth in recurring powder sales and the

growing customer portfolio. Adjusted EBITDA for second quarter stood at CAD -1.1

million compared to CAD -0.2 million in the same period last year, in line with

what was forecast in the Q1 2021 report. In 2020, Tekna benefitted from a

generous COVID support mechanism from the government, whilst at the same time

cutting its costs in line with reduced activity levels.

Tekna announced two major new contracts in the period: a multi-year joint

development agreement with leading Korean chemical company LG Chem to develop

new materials that will improve the storage capacity and the cycle stability of

Lithium-Ion batteries, and a three-year agreement for 3D printing titanium

powder with Airbus. Subsequent to the quarter, Tekna announced a 10-year supply

agreement in Additive Manufacturing with a leading EU jet engine and Aerospace

component OEM.

In May, Tekna announced that it had accepted an invitation from the National

Center for Advanced Materials Performance to participate in a major aerospace

qualification program. Parts produced with Tekna's powder material qualified

under this program will automatically pass the initial design phase and analysis

by the FAA, U.S. Department of Defense (DoD), and the National Aeronautics and

Space Administration (NASA).

Tekna has launched a CAD 16 million investment program to scale up capacity in

all three powder business segments to deliver on accelerating growth. In

addition, the company has approved the commissioning of a new Additive

Manufacturing powder atomizer in France, to meet growing demand generated from

ImphyTek Powders, a Tekna and Aperam joint venture serving the aerospace,

medical, and automotive industries.

"Looking ahead, all the market indicators we are monitoring are positive," says

Dionne. "The number of orders and the average order size of materials sold in

the additive manufacturing segment are increasing, while new sales channels are

opening-up in consumers electronics. The EV and 5G markets are booming, which is

driving the demand for Tekna's nano-size Silicon and Nickel powders. There could

not be a more propitious time to be scaling up Tekna's technology, which is one

of very few that enables OEMs to differentiate themselves with superior products

in their markets. "

"The favourable market conditions that we have observed in the first six months

are expected to continue throughout the year and Tekna's ambition to grow 2020

materials revenues of CAD ~13 million to a run-rate of CAD ~22 million in 2021

is well within reach," Dionne adds.

Tekna will present its financial results for the second quarter and half-year

2021 on Thursday 19 August, 2021, at 12:00 CEST. 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:

https://www.tekna.com/investors/webcast-2021q2

The full report and presentation are available at

https://www.tekna.com/investors

For additional information, please contact: Arina van Oost, Investor Relations

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/17847682/741/995/Download%20announcement%2

0as%20PDF.pdf

2021Q2 presentation vF.pdf -

https://kommunikasjon.ntb.no/ir-files/17847682/741/993/2021Q2%20presentation%20v

F.pdf

2021 Half year Operations Report vF.pdf -

https://kommunikasjon.ntb.no/ir-files/17847682/741/994/2021%20Half%20year%20Oper

ations%20Report%20vF.pdf