Lokotech Group ASA

Investor Presentation • Mar 31, 2025

Company Presentation Annual Report 2024

Oslo, 31st of March 2025

www.lokotechgroup.com | www.lokotech.no | www.arcticcore.no | www.powerpool.io

Disclaimer

This presentation has been prepared by Lokotech Group A/S (the "Company") solely for information purposes. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities. Certain statements included in this presentation contain various forward-looking statements that reflect management's current views with respect to future events and financial and operational performance. The words "believe," "expect," "anticipate," "intend," "may," "plan," "estimate," "should," "could," "aim," "target," "might," or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include but are not limited to the Company's ability to operate profitably, maintain its competitive position, to promote and improve its reputation, to successfully execute its strategy and the impact of changes in pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, neither the Company nor its subsidiary undertakings or any of such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.

Today's speakers

Ola Stene-Johansen Group CEO M.sc.BA, NHH

Cofounder of Subsidiaries

Ruben Gómez CEO Powerpool

B.sc. Applied Mathematics & Computing, UC3M

Founder and CEO, Powerpool Mining SL Software Dev, Lokotech Group

A Fabless Semiconductor Company Focused on Blockchain and AI, with Ownership in a Mining Pool and Data Centers

Highlights 2024

• Conclusion on validation of the ASIC design in May.
• Final power simulations completed in September.
• PUF (IP protection efforts) implemented.
• Several framework agreements secured for pre-orders of Scrypt hardware.
• Acquisition of a 5,000 square meter mountain hall. Tactical procurement and investments in the necessary infrastructure. This will enable the launch of conventional data centre services in Q1 2025.
• Completion of the Powerpool acquisition. Development has progressed well throughout the year.
• Launch of a partially underwritten rights issue (post balance date), providing good visibility on the Group's previously communicated capital requirements.

Summary of Annual Accounts

Lokotech Group AS			Group Consolidated
2024	2023		2024	2023
Numbers in NOK 1000's
7 044	4 215	Revenues	3 803	0
7 704	15 504	OPEX	28 345	28 990
454	-21 034 Result of Financial items		609	1 250
-205	-32 323	Pre-tax loss	-23 932	-27 739
193	0	Taxes	1 002	3
-399	-32 323	Loss after taxes	-24 935	-27 743

Summary of Annual Accounts

Lokotech Group AS			Group Consolidated
2024	2023		2024	2023
Numbers in NOK 1000's
7 044	4 215	Revenues	3 803	0
-7 704	-15 504	OPEX	-28 345	-28 990
454	-21 034	Result of Financial items	609	1 250
-205	-32 323	Pre-tax loss	-23 932	-27 739
193	0	Taxes	1 002	3
-399	-32 323	Loss after taxes	-24 935	-27 743

Large portion of Intra-group debt issued in 2024 is not written off Powerpool Mining SL revenue

Group loss mainly depreciation of R&D

Market Development - Introduction

Scrypt Ecosystem

• Litecoin and Dogecoin are the dominant blockchains in the Scrypt space
• Litecoin is challenging Bitcoin for the lead in transaction volume in 2024
• Merge mining efforts are increasing—boosting miner revenue, enhancing network security, supporting adoption, huge benefit for the ecosystem

ETF Outlook

• Multiple Litecoin and Dogecoin ETF applications are in progress
• Anticipated to drive institutional inflows and overall ecosystem growth
• SEC appears to view proof-of-work coins as commodities*
• BlackRock has listed LTC as a key risk factor in its Bitcoin ETF application

*Source: https://www.sec.gov/newsroom/speeches-statements/statement-certain-proof-work-mining-activities-032025

Market Development & Price

Scrypt Algorithm: >100% Increase in 2024

Scrypt Algorithm: Merge Mining

Key Takeaways:

Huge Economic Benefit – If you aren't merge-mining, you're doing it wrong.

• Enhances the Attractiveness of Scrypt Mining Especially when compared to SHA-256.
• Makes Scrypt a Stronger Algorithm Choice for New PoW Projects e.g., \$MEOW.
• Environmentally Positive More efficient use of existing resources.

Hashrate Value Is Not Solely Price-Dependent – It self-adjusts based on network dynamics.

Powerpool Mining SL: Financial Highlights

Revenue: EUR 456 636 Depreciation: EUR 83 290 Operating profit: EUR 346 653 Dividend paid in '24: EUR 248 115

Global reach: 121 Countries

Certifications: SOC in Progress

Powerpool: A Global Footprint

Hashrate Development: April to December 2024

Mining Disrupt: March 25th-27th 2025

Booth

Explaining the Profitability Benefits

Showcasing the New Hardware Solutions

Giving out T-Shirts & Other Prizes

Case Study: 10 MW Farm

A 10 MW farm is likely to join PP after Mining Disrupt.

Estimated Monthly Revenue (Based on Hardware Type):

• If the farm runs entirely on SHA-256 (e.g., using S19): \$4,052 – \$12,157
• If the farm runs entirely on Scrypt (e.g., using L7): \$9,468 – \$28,405

Estimated Annual ROI from Client Acquisition:

• 240% – 1200%, depending on efficiency.

Significantly higher if the farm uses state-of-the-art equipment.

Important Considerations for the Future

Short-Term Goals:

• Initiate and ramp up mass production; improve mask set quality
• Expand Powerpool's service offerings and accelerate growth in existing verticals
• Develop and mature the data centre business assess potential for hosting services

Mid- to Long-Term Goals:

• Identify the optimal strategy for entering the SHA-256 hardware market
  • The SHA-256 Market emits at least 15x the value daily compared to Scrypt
• Mature and commercialize Edge AI capabilities

Selected Key Risk Factors

Development Risk:

• Risk related to R&D activities (Low)

Financial Risk:

• Risk that the capital raise may not be completed, potentially impacting operations and scaling plans (Low – EGA on April 30th)

Technology Upscaling Risk:

• Inherent risks associated with advancing from TRL 5 to TRL 6–8 (Moderate)

Contact & Questions

Lokotech Group AS post@lokotech.no www.lokotechgroup.com www.lokotech.no www.arcticcore.no www.powerpool.io