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IR - Norsk Titanium AS - First Half 2025 Results & Support for Upcoming Funding Process - Attachment: Norsk Titanium AS first half 2025 Report.pdf

Company: Norsk Titanium AS Date: 2025-08-20 Language: English Register to download
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# FIRST HALF REPORT

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## **Innovating the Future of Metal**

Norsk Titanium and its subsidiaries (referred to herein as "Norsk Titanium", "the Company", "we", "us" or "our") is a global leader in metal 3D printing that is innovating the future of metal manufacturing by enabling a paradigm shift to a clean and sustainable manufacturing process from traditional forgings and castings. With our proprietary Rapid Plasma Deposition® (RPD®) technology, Norsk Titanium provides cost-efficient 3D printing of metal alloys with the ability to deliver value-added parts to a large addressable market.

We focus on high end structural applications for which the adoption of 3D printed metal parts will add substantial value compared to existing materials and production methods. High complexity markets such as commercial aerospace and defense allow Norsk Titanium to deliver a strong value proposition and strategically positions us for expansion into other markets. Using our industry recognized material specifications, customers can identify parts adaptable to our RPD® process. We can then deploy our proprietary software development tools to quickly design and manufacture parts that will integrate seamlessly into the customer's existing supply chain.

Thanks, in part, to our partnership with the State of New York, Norsk Titanium has 700 MT of annual print capacity between its facilities in Norway and the US, which supports our business plan through 2026 and beyond. With no need for further investments in machinery, we have directed our resources towards qualifications and testing to ensure our customers can utilize our 3D printed material commercially as a direct replacement for parts currently manufactured using traditional technologies.

\*At full utilization the current print capacity is estimated to generate annual revenue of USD 300 million.

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**CEO, Carl O. Johnson**

Dear Shareholders,

The first half of 2025 has been a time of both progress and recalibration. We experienced yearover-year revenue growth of over 50%, while strengthening our supply chain, enhancing operational capabilities, and expanding into new markets. We have pursued and won new contracts in defense and energy infrastructure that validate the value proposition of RPD® extends beyond commercial aviation. In parallel, our funded development work in nickel alloys is opening new opportunities in aerospace, oil and gas, and nuclear applications.

These achievements are offset by longer-than-expected part transitions in commercial aerospace, resulting in a delay in our revenue forecast. Therefore, we will not realize the revenue milestones we originally set for this year and 2026.

The challenges in commercial aerospace do not change the scale of our opportunity — they reinforce the need for a more diversified commercial platform. This diversification strategy reduces customer concentration risk, shortens time-to-revenue through faster-cycle markets, and positions us for more resilient, sustainable growth.

Commercial aerospace nevertheless remains our most important market, with Airbus and Boeing central to our long-term success, and the anticipated third Airbus production order in the second half of 2025 is still a pivotal milestone.

In our updated business plan we are now targeting revenue of USD 70 million in 2026, supported by a balanced mix of commercial aerospace, defense, and industrial programs, anchored in firm contracts and mature commercial discussions. The delayed revenue trajectory means that our expected breakeven is being pushed out to the beginning of 2027, creating a capital need to fully fund our operations through to breakeven.

To this end we have initiated a process to raise around USD 15 million in new equity, which together with working capital funding will see us through to breakeven. I am glad to see that our three largest shareholders remain committed to Norsk Titanium and are supportive of our funding plans.

Additive manufacturing will reshape the economics and sustainability of high-performance metal components, and Norsk Titanium is at the forefront of this transformation. With proven technology, critical industry qualifications, and a growth plan supported by a broader market reach, we are positioned to create lasting value for our shareholders.

I want to thank our employees, customers, and shareholders for their continued commitment, and I look forward to updating you on our progress as we execute on this next phase of growth.

Sincerely,

Carl Johnson CEO

#### **Key Highlights**

- H1 2025 revenue of USD 2.0 million vs. USD 1.3 million in H1 2024, a 54% increase year over year
- H1 2025 parts in serial production remained at 54 with an estimated ARR of USD 12.2 million
- Building on H1 activities, won new contracts in defense and energy infrastructure in July 2025, increasing the number of parts in serial production to 56 with an estimated ARR USD 12.8 million
- Part transitions in commercial aerospace slower than anticipated in 2025, with slower revenue ramp pushing expected breakeven to early 2027
- Targeting revenues of USD 70 million in 2026, with a balanced mix between commercial and defense aerospace and diversified industrial segment, and anchored in firm contracts and mature commercial discussions
- The Company is contemplating to raise, in one or several transactions, approximately USD 15 million in equity, which in combination with working capital financing is expected to fully fund the Company through to breakeven. The three largest shareholders have informed the Company that they will commit to support the contemplated transaction(s) with the entire capital need of approximately 15 million.

### **H1 Key Events**

### **Commercial Aerospace**

- Airbus Aerostructures showcased RPD® at the 9th Additive Manufacturing Forum in Berlin with a roadmap to adoption on all aircraft programs
- Continuing discussions with Airbus Aerostructures on a third production order under the Master Supply Agreement signed in 2024, with decision process delayed to H2 2025
- Ongoing engagement with Boeing on development activities

### **Defense**

- First serial production part deliveries completed under long-term contract with US DoD prime contractors on unmanned systems
- Additional parts in qualification with a new US DoD prime contractor, expanding Norsk Titanium's technology to new customers and applications

### **Industrial**

- Production of carrier trays used in semiconductor chipmaking suspended in H1 2025, expected to resume production in late 2025
- Nickel alloy development programs progressed with Bechtel, which will advance opportunities in maritime, oil & gas, nuclear, engines, and aircraft structures markets
- Continuing to expand our footprint into industrial markets with sales team hires

#### **Financial and Operational**

- Hired experienced Chief Commercial Officer and scaled up sales team; engaged external sales representatives
- Created a cross-functional product management team within the existing organization to accelerate the transition of parts from engineering into production
- Closed on USD 10 million term loan facility with Claret Capital Partners and drew down USD 5 million

#### **Milestone Progress**

The Company's announced goal for 2025 was to transition over 120 parts to serial production by year-end, achieving ARR of USD 70-90 million. Although many of these parts are progressing through the business evaluation and development cycles, the timing of transition into serial production remains a challenge. While customers clearly recognize the advantages of RPD® technology, many of them are taking a slow and stepwise approach to ensure smooth and successful adoption into existing production processes.

|                                                                 | YTD<br>2025 | H1<br>2025 | H1<br>2024 | Full-year<br>2024 | Description                                                                          |
|-----------------------------------------------------------------|-------------|------------|------------|-------------------|--------------------------------------------------------------------------------------|
| Parts in serial<br>production                                   | 56          | 54         | 26         | 54                | Parts in serial production for tier-1 suppliers to<br>leading OEMs in target markets |
| Annual recurring<br>revenue of parts<br>in serial<br>production | \$12.8m     | \$12.2m    | \$7.4m     | \$12.2m           | Estimated total annual revenue opportunity for parts<br>in serial production         |

Revenue for H1 2025 fell short of the previously indicated ARR from parts in serial production, primarily due to lower-than-expected volume offtake of industrial parts as the main customer has lowered forecasts and reduced their inventory levels.

#### **Subsequent Events After H1 2025**

- Received production order for 2 new parts for US Department of Energy and development order with DoD for missile programs
- 56 parts in serial production year-to-date with an estimated ARR from serial parts at USD 12.8 million

#### **Financial Summary**

Norsk Titanium generated revenue and other income of USD 2.1 million during the first half of 2025, versus USD 1.3 million in the same period last year, representing a year-over-year growth rate of 54%. Revenue from delivery of parts in serial production was USD 0.9 million during the first half of 2025, in line with the same period last year. Revenue from customer-funded development activities grew to USD 1.1 million during the first half of this year, compared to USD 0.3 million during the first half of 2024.

Average monthly cash burn for the period was USD 2.9 million, compared to USD 2.3 million for the full year 2024. The increase in cash burn was mainly due to higher sales and development activity and engagements with customers. The Company secured a larger quantity of raw material for parts on production orders and developing parts in advance of final production orders to facilitate faster transitions into production. Efforts are underway to reduce inventory purchases to align with order backlog.

Norsk Titanium's financial position weakened in the first half of 2025, as the cash balance decreased from USD 22.8 million at the end of 2024 to USD 12.1 million as of 30 June 2025. This reflects a negative cash flow from operations which was only partly offset by share capital transactions and increase in debt of USD 4.7 million.

| Key financials* (\$ million)      | H1 2025 | H1 2024 | 2024  |
|-----------------------------------|---------|---------|-------|
| Revenue and other income          | 2.1     | 1.3     | 5.1   |
| Average monthly cash burn rate ** | (2.9)   | (2.3)   | (2.3) |
| Ending cash balance               | 12.1    | 23.9    | 22.8  |

\*Unaudited

\*\*Alternative Performance Measure (APM): Net change in cash and cash equivalents excluding capital raised from debt and/or share increases adjusted for currency exchange rates

The current cash position and available cash through loan facilities will not be sufficient to finance the Company through to a postponed breakeven in the beginning of 2027. The Company is currently working on a funding plan including an equity capital raise of approximately USD 15 million in Q3 2025, which in combination with working capital financing is expected to fully fund the Company through to breakeven.

The funding plan including the capital increase is supported by the Company's three largest shareholders.

### **Commercial Review**

#### **Commercial Aerospace**

The anticipated demand growth in the commercial aerospace market remains a cornerstone of Norsk Titanium's growth strategy. At the 9th Annual Manufacturing Forum in Berlin in March, Airbus Aerostructures reconfirmed their intention both to significantly expand the size and complexity of parts produced using Directed Energy Deposition (DED) and to start deploying titanium wire additive manufacturing across all aircraft programs. Norsk Titanium already supplies the Airbus A350 program with its first fatigue critical and largest primary structure additively manufactured part in commercial aviation. Other customers in aerospace and defense have publicly indicated a similar commitment to expand the use of DED in a variety of applications.

Norsk Titanium entered into a long-term Master Supply Agreement with Airbus Aerostructures to support A350 production in April 2024. The Company has delivered titanium serial production parts under two production orders and remains in active dialogue for a third, larger order. Although the order-size decision has moved to the second half of 2025, management expects the award to materially boost serial-part count and ARR through 2026.

Engagement with Boeing also advanced, albeit at a slower pace and limited by Boeing's ongoing restructuring of operations. Other development efforts with customers such as Safran Landing Systems show progress towards further penetration of the aerospace market in large landing gear structures. An aero‑engine customer completed a technical review of our machining workflow and is expected to issue an initial development order in the third quarter.

#### **Defense**

Serial deliveries continued under long-term contracts for unmanned aircraft systems with U.S. Department of Defense prime contractors. Adjustments in U.S. government funding have delayed procurement schedules, resulting in several parts—originally expected to transition into serial production in early 2025—now anticipated to transition later in the year. Additional parts are currently in qualification with a new U.S. DoD prime contractor, expanding the application of Norsk Titanium's technology to new customers and mission-critical platforms.

A leading defense contractor placed new development orders for missile system components, reinforcing confidence in RPD® technology for high-rate production. This engagement marks a significant step in broadening the defense pipeline and establishing a foothold in advanced weapons systems, further validating the performance and scalability of Norsk Titanium's additive manufacturing solutions in high-demand defense applications.

### **Industrial**

A temporary pause in orders from semiconductor chipmaking equipment occurred as the customer worked through existing inventory. Deliveries are expected to resume in Q4 2025. In the meantime, the sales pipeline has expanded, with increased interest from customers in the energy infrastructure and high-temperature alloy sectors.

In July 2025 a United States government contractor for the Department of Energy (DoE) placed its first full-rate purchase order for titanium process equipment components. This marks the beginning of a new recurring revenue stream and further diversifies the customer base.

### **Technology Review**

The Company developed and successfully implemented a cost-reducing architecture enabling a single operator to control two G4 machines in the first half of 2025. Installation of a workstation that enables one operator to manage two machines marks a significant step toward improving operational efficiency and reducing labor costs by 50% across production lines.

During the same period, the Company completed submission of RPD® titanium material properties for inclusion in Volume II of the Metallic Materials Properties Development and Standardization (MMPDS) Handbook, which focuses on process-intensive materials such as additively manufactured metals. These properties will be the first for RPD® titanium included in the new volume, which is developed in collaboration with the U.S. Department of Defense, FAA, NASA, and over 30 aerospace organizations across nine countries. Additionally, Norsk Titanium completed the first phase of a development contract for Inconel 625, with Phase 2 set to focus on more complex geometries. Inconel 625 is widely used in aerospace, oil and gas, chemical processing, power generation, naval, and nuclear industries, positioning this development as a gateway to expanded market opportunities.

In-house machining and heat-treatment capabilities were installed to accelerate part development and reduce qualification timelines. Several new suppliers were qualified into the global supply chain, enhancing resilience and improving downstream lead times.

### **Financial Review**

#### **Income Statement**

During the first half of 2025, total revenue increased by 54% to USD 2.0 million from USD 1.3 million in the same period last year. Norsk Titanium generated USD 0.9 million in revenue from sale of parts to customers, the same level as in the first half last year. USD 1.1 million was generated from products and services delivered on development programs, an increase from USD 0.3 million in the same period last year, mainly due to deliveries of development programs to customers in aerospace and defense.

Other income amounted to USD 0.1 million in the first half 2025, unchanged from the period last year. Other income reflected net gain from the RPD® machine grant.

Operating expenses during the first half 2025 were USD 17.2 million, compared to USD 13.4 million in the same period 2024. This generated an EBITDA-loss of USD 15.1 million in the first half 2025, compared to a loss of USD 12.1 million in the same period 2024. The increased EBITDA loss was driven by higher operating expenses to increase commercial and operational capabilities.

Depreciation and amortization amounted to USD 0.8 million for the first half of 2025, compared to USD 0.9 million in the same period 2024. The resulting operating loss (EBIT) for the first half 2025 was USD 16.0 million, compared to a loss of USD12.9 million the same period 2024.

Net financial loss increased to USD 24.2 million in the first half of 2025, compared to USD 14.0 million in the first half of 2024, due to unrealized losses on net foreign exchange.

Net loss amounted to USD 40.1 million in the first half of 2025, compared to a loss of USD 27.0 million in the same period last year, primarily due to the unrealized losses on net foreign exchange. The financial results reflect that Norsk Titanium is in the initial stage of growth and industrialization of its disruptive 3D metal printing technology.

### **Cash Flow**

Net cash used in operating activities was USD 16.8 million in the first half of 2025, compared to USD 13.3 million in the same period in 2024. The average monthly cash burn rate was USD 2.9 million in the first half 2025, which is up from USD 2.3 million in the same period last year.

Cash outflows from investing activities were USD 0.2 million, compared to USD 0.0 million in the same period 2024. In the first half of 2025, Norsk Titanium continued its investments in upgrading its digital infrastructure and acquired additional production equipment as the Company continues to ramp up production activities.

Cash flow from financing activities amounted to USD 4.7 million, mainly reflecting draw down of USD 5 million of a USD 10 million term loan facility. In the same period in 2024, cash flow from financing activities was USD 36.1 million, mainly reflecting an equity capital raise.

The cash balance decreased to USD 12.1 million at 30 June 2025. This will not be sufficient to fund the Company through to breakeven at the beginning of 2027, and the Company therefore intends to execute a funding plan including an equity raise in one or more transactions of approximately USD 15 million in addition to working capital financing.

The funding strategy and contemplated equity issue is expected to fully fund the Company through breakeven. The Company's three largest shareholders have informed the Company that they will commit to support the contemplated transaction(s) with the entire capital need of approximately 15 million.

#### **Balance sheet**

Total assets at 30 June 2025 were USD 30.0 million, compared to USD 38.5 million at the end of the first half 2024. USD 6.5 million of this was non-current assets, of which intangible assets accounted for USD 1.7 million, Property Plant and Equipment (PPE) for USD 3.5 million, and right-of-use of assets for USD 1.4 million.

Current assets amounted to USD 23.5 million, of which inventories accounted for USD 8.6 million, trade receivables for USD 1.0 million and other current assets for USD 1.7 million. Cash and cash equivalents were USD 12.1 million.

Total equity amounted to USD 16.9 million at 30 June 2025, compared to USD 10.3 million at the end of the first half 2024. The increase primarily reflects the issuance of share capital in the period.

Total liabilities amounted to USD 13.1 million, compared to USD 28.2 million at the end of the first half 2024. USD 6.8 million of this was non-current liabilities at the end of the first half 2025 (USD 2.5 million at the end of the first half 2024), and USD 6.4 million current liabilities (USD 25.7 million at the end of the first half 2024). The decrease in current liabilities mainly reflects the decrease in derivative financial liability due to a decrease in the outstanding warrants at the reporting date.

### **Market Overview and Commercial Strategy**

Over the past decade, Norsk Titanium has completed extensive development and qualification processes with major customers and international aviation authorities and established itself as the only qualified supplier of fatigue-critical, additively manufactured titanium parts for commercial aerospace. These complex, multi-year requirements and the expertise accumulated create high barriers to entry and a sustainable competitive moat – and ensures that each new part qualified further shortens future cycles and strengthens our market position.

Current part qualification timelines are taking longer than expected, reflecting the stringent regulatory, engineering, and testing processes in aerospace and defense to incorporate RPD® specifications into design standards. In an optimized production environment with increased process familiarity among stakeholders, streamlined workflows, and closer OEM integration, transition times are expected to compress to 3–6 months, significantly accelerating revenue conversion across all sectors.

Additive manufacturing of titanium parts continues to attract strong interest, driven by rising raw material costs and demand for more efficient onshore manufacturing. The addressable market for titanium components remains substantial, and while adoption is delayed, the long-term opportunity continues to grow.

#### **Sector Demand Drivers**

In the first half of 2025, commercial-aircraft build rates continued to rise, with Airbus targeting record single-aisle output of up to 75 A320 family aircraft per month by 2027 and steady increases in wide-body production, including A350 output to 12 per month by 2028.[1](#page-11-0) Boeing reiterated its plans to ramp 787 production to 10 aircraft per month by 2026 as supply-chain stability improves[.2](#page-11-1) Collectively, these production schedules point to sustained double-digit growth in titanium demand over the coming years.

In defense, U.S. and European governments are increasing budgets to meet NATO spending commitments, replenish munitions, and accelerate procurement of advanced missile and airdefense systems. U.S. procurement alone is projected at USD 153 billion for FY 2026[3,](#page-11-2) with potential to rise above USD 200 billion depending on reconciliation, while NATO allies have collectively committed to lifting spending toward 5% of GDP in coming years.[4](#page-11-3) Prime contractors are seeking secure, qualified Western titanium sources with rapid production capability—conditions that directly align with Norsk Titanium's technology.

Industrial demand is also strengthening across several high-growth segments. Global data-centre investment alone is projected to reach USD 1.2 trillion by 2029 at a 21% CAGR[5,](#page-11-4) underscoring the scale of demand for advanced infrastructure. Semiconductor manufacturing is in the midst of a global investment cycle, with expected annual capex around USD 185 billion in 2025[6,](#page-11-5) driven by AI data-center build-outs, new fabrication facilities, and process-equipment upgrades. This expansion is creating significant demand for high-performance titanium components such as

<span id="page-11-0"></span><sup>1</sup> Airbus Q1 2025 report, 30 April 2025

<span id="page-11-1"></span><sup>2</sup> "Boeing Commits \$1 Billion to Speed Up 787 Dreamliner Production", Wall Street Journal, 30 December 2024

<span id="page-11-2"></span><sup>3</sup> Department of Defense Fiscal Year (FY) 2026 Budget Estimates, June 2025

<span id="page-11-3"></span><sup>4</sup> "NATO is on the cusp of accepting Trump's 5% defense investment demand, Rutte says", AP News, 6 June 2025

<span id="page-11-4"></span><sup>5</sup> "Absolutely immense': the companies on the hook for the \$3tn AI building boom," Financial Times, 14 August 2025

<span id="page-11-5"></span><sup>6</sup> Infosys, Semiconductor Industry Outlook 2025, April 2025

chamber parts, wafer-handling hardware, and vacuum/process tooling—applications where RPD® offers lower material waste, shorter lead times, and repeatable quality.

Beyond semiconductors, the energy, oil and gas, and chemical processing sectors are modernizing infrastructure to meet rising demand, decarbonization goals, and supply-chain resiliency objectives. These industries require high-temperature and corrosion-resistant parts that have traditionally been sourced through long-lead forgings and castings. RPD® preforms can be produced in weeks rather than months, offering cost, schedule, and sustainability advantages. With procurement cycles typically measured in months rather than years, these industrial segments provide a faster route to revenue diversification and margin growth than aerospace alone.

#### **Market Opportunity[7](#page-12-0)**

For Norsk Titanium, the total addressable market (TAM) is defined as the spend on titanium in each sector. The serviceable obtainable market (SOM) is the subset of TAM relevant for additive manufacturing (i.e. forgings and castings that can be replaced) that Norsk Titanium can credibly win with the print envelope of its G4 and G4L RPD® machines. The three major segments the Company services show substantial long-term potential:

- **Commercial Aerospace** The TAM for titanium applications exceeds USD 13 billion annually. Norsk Titanium's SOM is estimated at USD 3.2 billion by 2030, as titanium-wire additive manufacturing gains traction across Airbus and Boeing platforms.
- **Defense**: The TAM exceeds USD 5 billion, with a SOM of approximately USD 0.9 billion across missile systems, rotorcraft, and naval platforms—each offering multi-year recurring volumes once qualified.
- **Industrial Markets**: Including semiconductors, energy infrastructure, oil & gas, chemical processing, space, satellite and launch vehicles, the near-term SOM is estimated at USD 3.0 billion. Semiconductor growth is driven by global capacity expansion and AI hardware investment, while energy and process industries offer opportunities to replace forgings and castings with faster, more cost-effective RPD® preforms.

Norsk Titanium's current SOM is defined by three factors: (1) parts where additive manufacturing is technically validated; (2) programs where Norsk Titanium has active customer engagement, contracts, or qualifications; and (3) the installed production capacity to supply them. Expanding the SOM will require further qualifications such that the universe of eligible applications grows, customer adoption and conversion of development programs into long-term production orders, and capacity expansion.

Collectively, Norsk Titanium's three focus markets yield an SOM opportunity exceeding USD 7 billion annually. The Company's 2030 plan requires capturing less than 10% of the SOM and less than 1% of the TAM—highlighting both the scale of the opportunity and the significant headroom for growth.

<span id="page-12-0"></span><sup>7</sup> Market opportunity assessments based on Company-commissioned third-party market study and management estimates.

### **Outlook**

Norsk Titanium has updated its business plan and medium-term targets to reflect a more diversified revenue base, adjusted program timelines, and a stronger path to sustainable profitability. The Company now targets approximately USD 70 million of revenue in 2026, with its USD 150 million revenue ambition shifted to 2028.

The updated plan for 2026 is anchored in specific customer programs, signed agreements, and forecasts from advanced commercial negotiations—with two-thirds of projected sales either firm or quoted with a high probability of converting to serial production. Approximately 40% of 2026 revenue is expected from commercial aerospace, 10% from defense-aerospace, and the remainder from non-aerospace defense and industrial markets.

Commercial aerospace remains the largest contributor given its recurring and high margin nature, with the anticipated third Airbus production order expected to significantly expand the qualifiedpart portfolio. Defense programs are progressing through late-stage qualification, while industrial markets — particularly semiconductors and energy infrastructure — are providing faster-cycle growth opportunities that complement the longer timelines in aerospace.

To support this strategy, the Company has strengthened its sales organization with dedicated resources across key verticals and geographies. Additionally, a cross-functional product management team has been established from within the existing organization to accelerate the transition of parts from engineering into production.

As noted under 'Financial Review' above, Norsk Titanium is working to secure additional capital to execute this plan and maintain the flexibility to capture additional opportunities. This funding plan includes an equity capital raise of approximately USD 15 million, which in combination with working capital facilities is expected to fully fund the Company through breakeven in early 2027. The Company's three largest shareholders, White Crystals Ltd., Scatec Innovation AS, and Global Portfolio Investments, representing a combined shareholding of 45%, have informed the Company that they will commit to support the contemplated transaction(s) with the entire capital need of approximately 15 million.

With proven technology, established qualifications, and a broadened set of growth engines, this financing will position Norsk Titanium to deliver on its updated plan and create long-term shareholder value.

The Company has engaged Arctic Securities and Pareto Securities to act as managers in the contemplated transaction(s).

### **Risks and Uncertainty Factors**

Norsk Titanium operates in the 3D printing market of forge-equivalent near net shapes and finished parts, and currently delivers titanium components to commercial aerospace, defense and industrial manufacturers. This business entails significant market and competition risks, operational risks, supply chain risks, technology and IP risks, and legal and regulatory risks which the Company has reviewed in detail in its Annual Report 2024 and to which there have since been no major changes.

As a development stage company in the process of transitioning to a commercial manufacturing concern, Norsk Titanium does not yet generate sufficient income from operations to fund its operations.

The Company's primary focus in 2025 has been twofold: 1) to increase the number of customer qualifications and pipeline of parts in development, and 2) to transition such parts from legacy manufacturing methods to serial production using RPD®, establishing the base for recurring revenue in years to come.

The Company's plans to ramp up production and increase volume of part deliveries has initially increased cash burn and working capital investments, and the cash burn has also been affected by increases in the cost of raw materials driven. New tariffs may also have a negative impact on titanium wire costs.

Future revenue growth is important to achieving a positive cash flow from operations. The Company's forecasts rely on information received from customers as it works with them to identify and transition parts from legacy production methods to RPD®. The Company can influence, but not control, the pace at which customers transition parts to RPD®, and the pace of adoption has been considerably slower than initially expected. Delays in qualification processes and part transition has in turn delayed revenue achievement and the expected timing of cash flow breakeven.

At the end of the first half of 2025 the Company had a cash position of USD 12.1 million, and as described above this is not expected to be sufficient to fund operations through to breakeven given the delayed revenue profile. As described under 'Financial Review', the Company is working to secure additional capital to meet its funding requirements in the form of an equity issue of USD 15 million in the third quarter. Management believes that this anticipated equity raise, together with additional working capital financing, will be sufficient to fund the Company until cash-flow breakeven in early 2027.

### Responsibility statement

From the Board of Directors and CEO of Norsk Titanium AS

We confirm, to the best of our knowledge, that the condensed set of financial statements for the period 1 January to 30 June 2025 has been prepared in accordance with IAS 34 –Interim Financial Reporting and gives a true and fair view of the Company's assets, liabilities, financial position and profit or loss as a whole. We also confirm, to the best of our knowledge, that the interim management report includes a fair review of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements, a description of the principal risks and uncertainties for the remaining six months of the financial year, and major related parties' transactions.

> Hønefoss 19 August 2025

John Andersen Jr. Chairman

Mimi K. Berdal Board Member

Shan Ashary Board Member

Nicole Clement Board Member

Tarek Hegazy Board Member

Bettina Weber Board Member

Carl O. Johnson CEO

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**Half year Condensed Interim Financial Statements and Notes**

17

### **Consolidated statement of comprehensive income**

Norsk Titanium

|                                                                |       | First half | First half | Full Year* |
|----------------------------------------------------------------|-------|------------|------------|------------|
| Amounts in USD thousand                                        | Notes | 2025       | 2024       | 2024       |
| Revenue                                                        | 2     | 1 982      | 1 261      | 4 479      |
| Other income                                                   | 3     | 132        | 59         | 596        |
| Total revenues and other income                                |       | 2 114      | 1 321      | 5 075      |
| Raw materials and consumable used                              |       | (4 777)    | (3 340)    | (7 216)    |
| Employee benefits expense                                      |       | (8 954)    | (7 302)    | (16 276)   |
| Other operating expenses                                       |       | (3 507)    | (2 734)    | (6 304)    |
| Depreciation and amortisation                                  |       | (832)      | (891)      | (1 749)    |
| Operating profit                                               |       | (15 956)   | (12 947)   | (26 470)   |
| Financial income                                               | 4     | 528        | 7 251      | 19 859     |
| Financial expenses                                             | 4     | (24 704)   | (21 288)   | (14 356)   |
| Profit or loss before tax                                      |       | (40 131)   | (26 984)   | (20 968)   |
| Income tax expense                                             |       |            | 0          | 0          |
| Profit or loss for the year                                    |       | (40 131)   | (26 984)   | (20 968)   |
| Profit/loss attributable to owners of the parent               |       | (40 131)   | (26 984)   | (20 968)   |
| Basic earnings per share (in USD)                              |       | (0,08)     | (0,06)     | (0,04)     |
| Diluted earnings per share (in USD)                            |       | (0,08)     | (0,06)     | (0,04)     |
| Other comprehensive income                                     |       |            |            |            |
| Items that subsequently may be reclassified to profit or loss: |       |            |            |            |
| Exchange differences on translation of foreign operations      |       | 25 679     | (6 599)    | (19 416)   |
| Other comprehensive income for the period                      |       | 25 679     | (6 599)    | (19 416)   |
| Total comprehensive income for the period                      |       | (14 452)   | (33 583)   | (40 383)   |
|                                                                |       |            |            |            |

\*Audited

### **Consolidated statement of financial position**

Norsk Titanium

| Amounts in USD thousand           | Notes | 30 June<br>2025 | 30 June<br>2024 | 31 December<br>2024* |
|-----------------------------------|-------|-----------------|-----------------|----------------------|
|                                   |       |                 |                 |                      |
| ASSETS                            |       |                 |                 |                      |
| Non-current assets:               |       |                 |                 |                      |
| Deferred tax asset                |       | 36              | 36              | 36                   |
| Right of use of assets            |       | 1 351           | 1 555           | 1 286                |
| Property, plant and equipment     |       | 3 464           | 2 974           | 3 114                |
| Intangible assets                 |       | 1 662           | 2 482           | 1 947                |
| Total non-current assets          |       | 6 513           | 7 047           | 6 384                |
| Current assets:                   |       |                 |                 |                      |
| Inventories                       |       | 8 648           | 5 069           | 6 274                |
| Trade receivables                 |       | 1 041           | 1 274           | 1 949                |
| Other current assets              |       | 1 707           | 1 175           | 1 946                |
| Cash and cash equivalents         |       | 12 098          | 23 914          | 22 815               |
| Total current assets              |       | 23 494          | 31 433          | 32 984               |
| TOTAL ASSETS                      |       | 30 008          | 38 480          | 39 368               |
|                                   |       |                 |                 |                      |
| EQUITY AND LIABILITIES            |       |                 |                 |                      |
| Equity:                           |       |                 |                 |                      |
| Share capital                     |       | 6 432           | 5 231           | 6 423                |
| Share premium                     |       | 14 712          | 32 893          | 54 843               |
| Other capital reserves            |       | 12 305          | 1 564           | 11 769               |
| Other equity                      |       | (16 554)        | (29 415)        | (42 232)             |
| Total equity                      |       | 16 896          | 10 272          | 30 803               |
| Non-current liabilities:          |       |                 |                 |                      |
| Non-current interest-bearing debt | 5     | 4 567           | 47              | 42                   |
| Non-current lease liabilities     |       | 1 176           | 1 286           | 1 116                |
| Other non-current liabilities     |       | 1 013           | 1 185           | 1 086                |
| Total non-current liabilities     |       | 6 756           | 2 518           | 2 244                |
|                                   |       |                 |                 |                      |
| Current liabilities:              |       |                 |                 |                      |
| Trade and other payables          |       | 1 907           | 1 202           | 1 794                |
| Current interest-bearing debt     |       | 13              | 1 326           | 14                   |
| Derivative financial liabilities  |       | 523             | 19 771          | 0                    |
| Contract liability                |       | 1 561           | 1 595           | 1 561                |
| Current lease liabilities         |       | 398             | 453             | 353                  |
| Other current liabilities         |       | 1 953           | 1 342           | 2 600                |
| Total current liabilities         |       | 6 355           | 25 690          | 6 321                |
| Total liabilities                 |       | 13 111          | 28 208          | 8 565                |
| TOTAL EQUITY AND LIABILITIES      |       | 30 008          | 38 480          | 39 368               |

\*Audited

### **Consolidated statement of changes in equity**

Norsk Titanium

|                                                                              | Attributable to the equity holders of the parent |                  |                    |                              |                                     |                     |                        |  |
|------------------------------------------------------------------------------|--------------------------------------------------|------------------|--------------------|------------------------------|-------------------------------------|---------------------|------------------------|--|
|                                                                              |                                                  |                  |                    |                              | Other equity                        |                     |                        |  |
| Amounts in USD thousand                                                      | Share<br>capital                                 | Share<br>premium | Treasury<br>shares | Other<br>capital<br>reserves | Cumulative<br>translation<br>effect | Accumulated<br>loss | Total<br>equity        |  |
| Balance at 31 December<br>2023*                                              | 2 450                                            | 19 618           | 0                  | (276)                        | (22 816)                            | 0                   | (1 025)                |  |
| Profit (loss)                                                                |                                                  |                  |                    |                              |                                     | (26 984)            | (26 984)               |  |
| Other comprehensive<br>income                                                |                                                  |                  |                    |                              | (6 599)                             |                     | (6 599)                |  |
| Issue of share capital<br>Issue of equity instrument<br>Shared-based payment | 2 781                                            | 40 259           |                    | (2 324)<br>4 059<br>105      |                                     |                     | 40 716<br>4 059<br>105 |  |
| Transfer to share premium                                                    |                                                  | (26 984)         |                    |                              |                                     | 26 984              | 0                      |  |
| Balance at 30 June 2024                                                      | 5 231                                            | 32 893           | 0                  | 1 564                        | (29 415)                            | 0                   | 10 272                 |  |
| Balance as of 31.12.2024*                                                    | 6 423                                            | 54 843           | 0                  | 11 769                       | (42 232)                            | 0                   | 30 803                 |  |
| Profit (loss)                                                                |                                                  |                  |                    |                              |                                     | (40 131)            | (40 131)               |  |
| Other comprehensive<br>income                                                |                                                  |                  |                    |                              | 25 679                              |                     | 25 679                 |  |
| Issue of share capital1)                                                     | 9                                                |                  |                    |                              |                                     |                     | 9                      |  |
| Shared-based payment                                                         |                                                  |                  |                    | 536                          |                                     |                     | 536                    |  |
| Transfer to share premium                                                    |                                                  | (40 131)         |                    |                              |                                     | 40 131              | 0                      |  |
| Balance at 30 June 2025                                                      | 6 432                                            | 14 712           | 0                  | 12 305                       | (16 554)                            | 0                   | 16 896                 |  |

\*Audited

1) Participants in the Company's Long Term Incentive Program (LTIP) have on 17 January 2025 exercised a total of 1,682 480 restricted share units ("RSU's"). Each RSU gives a right to acquire one share in the Company at a subscription price equal to the nominal value of the shares, being NOK 0.08. The Company has resolved to settle 364,319 RSUs with cash consideration to allow the beneficiaries to settle taxes. The remaining 1,381,161 RSUs exercised were settled by issuance of new shares in the Company.

In accordance with the LTIP program in the Company a new grant of 12,787.709 restricted share units ("RSU") was granted in the first half of 2025. The total number of RSUs granted equals 0.88% of total shares issued in the Company at grant date. The granted RSUs are subject to a time-based vesting over three years from the grant date. RSUs are automatically exercised at vesting with an exercise price corresponding to the par value of the shares being NOK 0.08.   

### **Consolidated statement of cash flows**

Norsk Titanium

| Amounts in USD thousand                                       | Notes | First half<br>2025 | First half<br>2024 | Full Year<br>2024* |
|---------------------------------------------------------------|-------|--------------------|--------------------|--------------------|
|                                                               |       |                    |                    |                    |
| Cash flows from operating activities                          |       |                    |                    |                    |
| Profit before tax                                             |       | (40 131)           | (26 984)           | (20 968)           |
| Adjustments to reconcile profit before tax to net cash flow:  |       |                    |                    |                    |
| Depreciation and amortisation                                 |       | 832                | 891                | 1 749              |
| Net financial income/expense included in financing activities | 4     | 6                  | 20 971             | 15 102             |
| Net foreign exchange differences                              | 4     | 24 365             | (6 934)            | (20 605)           |
| Tax payable                                                   |       | 0                  | 0                  | 0                  |
| Working capital adjustment:                                   |       |                    |                    |                    |
| Changes in inventories and right of use assets                |       | (2 374)            | 817                | (388)              |
| Changes in trade and other receivables                        |       | 908                | (691)              | (1 365)            |
| Changes in other current assets                               |       | 239                | (70)               | (841)              |
| Changes in trade and other payables                           |       | 113                | (357)              | 235                |
| Changes in other accruals                                     |       | (765)              | (985)              | 232                |
| Net cash flows from operating activities                      |       | (16 807)           | (13 341)           | (26 849)           |
|                                                               |       |                    |                    |                    |
| Cash flows from investing activities                          |       |                    |                    |                    |
| Purchase of property, plant and equipment                     |       | (522)              | (198)              | (1 012)            |
| Investment in intangible assets                               |       | 0                  | (14)               | (115)              |
| Interest received                                             | 4     | 294                | 173                | 592                |
| Net cash flow from investing activities                       |       | (228)              | (40)               | (534)              |
| Cash flow from financing activities                           |       |                    |                    |                    |
| Proceeds from issuance of shared capital                      |       | 9                  | 35 847             | 50 833             |
| Proceeds from issuance of debt instrument                     | 5     | 4 856              | 3 140              | 3 140              |
| Transaction cost                                              |       | 0                  | (2 324)            | (2 784)            |
| Payment of principle portion of lease liabilities             |       | (117)              | (180)              | (364)              |
| Repayment of debt                                             |       | (4)                | (267)              | (511)              |
| Interests paid                                                | 4     | (88)               | (105)              | (198)              |
| Net cash flow from financing activities                       |       | 4 656              | 36 111             | 50 115             |
|                                                               |       |                    |                    |                    |
| Net change in cash and cash equivalents                       |       | (12 379)           | 22 730             | 22 731             |
| Effect of change in exchange rate                             |       | 1 661              | (10)               | (1 110)            |
| Cash and cash equivalents, beginning of period                |       | 22 815             | 1 194              | 1 194              |
| Cash and cash equivalents, end of period                      |       | 12 098             | 23 914             | 22 815             |
|                                                               |       |                    |                    |                    |

### **Notes to the consolidated financial statements for the first half 2025**

### Note 1 General information and basis for preparation

The consolidated financial statements of Norsk Titanium AS and its subsidiaries (referred to herein as "Norsk Titanium", "the Company", "we", "us" or "our") for the half year period ended 30 June 2025 were authorized for issue in accordance with a resolution of the directors on 19 August 2025. Norsk Titanium AS (the Parent) is a Norwegian public limited liability Company listed on the Euronext Growth Oslo Stock Exchange. The registered office is located at Karenslyst Allé 9C, Oslo in Norway.

The consolidated financial statements of Norsk Titanium AS comprise of consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of cash flows, consolidated statement of changes in equity, and related notes. The consolidated financial statements of the Company have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting as issued by the International Financial Standards Board (IASB) and as adopted by the European Union (EU).

The Company has prepared the financial statements on the basis that it will continue to operate as a going concern. This assumption is based on the current market outlook and financial forecasts for the year 2025 and the Company's long-term strategic forecast including funding. See Risks and Uncertainty Factors – Financial Risks for further information on the board's assessment of Going Concern.

The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments at fair value through profit or loss. The warrants issued as part of the loan agreement with Claret are classified as derivative financial instruments and recognized as financial liabilities measured at fair value through profit or loss. The fair value of the warrants is determined by using a black and Scholes valuation model.

The consolidated financial statements are presented in USD and all values are rounded to the nearest thousand (000), except when otherwise indicated. The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company's annual consolidated financial statements for the year ended 31 December 2024.

Norsk Titanium identifies its reportable segments and discloses segment information under IFRS 8 Operating Segments. This standard requires Norsk Titanium to identify its segments according to the organization and reporting structure used by management. Currently Norsk Titanium operates its business as a single business unit developing its RPD® technology and selling parts to the commercial aerospace sector.

As a result of rounding differences numbers or percentages may not add up to the total.

#### Note 2 Revenue

|                                                                         | First half | First half | Full year |
|-------------------------------------------------------------------------|------------|------------|-----------|
| Amounts in USD thousand                                                 | 2025       | 2024       | 2024      |
| Revenues                                                                |            |            |           |
| Sale of printed parts                                                   | 879        | 947        | 2 279     |
| Revenue from products and services delivered on development<br>programs | 1 104      | 314        | 2 201     |
| Total revenues                                                          | 1 982      | 1 261      | 4 479     |
|                                                                         |            |            |           |
| Geographic information:                                                 |            |            |           |
| Revenues from customers                                                 |            |            |           |
| Europe                                                                  | 357        | 792        | 1 909     |
| USA                                                                     | 1 625      | 469        | 2 570     |
| Total revenues                                                          | 1 982      | 1 261      | 4 479     |
|                                                                         |            |            |           |
| Timing of revenue recognition:                                          |            |            |           |
| Goods transferred at a point in time                                    | 1 982      | 1 261      | 4 479     |
| Total revenues                                                          | 1 982      | 1 261      | 4 479     |

#### Note 3 Other income

|                                  | First half | First half | Full Year |
|----------------------------------|------------|------------|-----------|
| Amounts in USD thousand          | 2025       | 2024       | 2024      |
| Other income                     |            |            |           |
| Net gain from RPD machine grant* | 132        | 59         | 174       |
| Government grants                | 0          | 0          | 421       |
| Total other income               | 132        | 59         | 596       |

\*Net gain from RPD machine grant reflect net gain from the sale and leaseback of RPD machines to FSMC, being recognized as other income over the lease term. The future net gain from the RPD machines is recognized as contract liability in the balance sheet.

### Note 4 Financial items

|                                            | First Half | First Half | Full year |
|--------------------------------------------|------------|------------|-----------|
| in USD thousand                            | 2025       | 2024       | 2024      |
| Gains/(losses) on net foreign exchange     | (24 170)   | 6 934      | 18 959    |
| Interest income and other financial income | 297        | 175        | 594       |
| Interest and other financial expenses*     | (303)      | (21 146)   | (14 050)  |
| Net financial items                        | (24 176)   | (14 037)   | 5 503     |

\* The warrants issued as part of the loan agreement with Claret are classified as derivative financial instruments and recognized as financial liabilities measured at fair value through profit or loss. The fair value of the warrants is determined by using a black and Scholes valuation model. For the first half of 2025, the interest expenses and other financial expenses in the income statement reflect a loss of USD 195 thousand due to an increase in the fair value of these warrants. The fair value of the warrant based on the Black and Scholes valuation increased from NOK 0.71 per warrant at initial recognition to NOK 1.15 per warrant as of 30 June 2025. The valuation of the warrants is a level 3 valuation using both observable and unobservable inputs. The statement of financial position as of 30 June 2025 shows a derivative financial liability of USD 523 thousand, representing the estimated fair value of the outstanding warrants at the reporting date.

### Note 5 Interest bearing debt

|                                            | First Half | First Half | Full year |
|--------------------------------------------|------------|------------|-----------|
| in USD thousand                            | 2025       | 2024       | 2024      |
|                                            |            |            |           |
| Opening balance                            |            |            |           |
| Non-current interest bearing debt          | 36         | 47         | 42        |
| Current interest bearing debt              | 14         | 6 499      | 6 499     |
| Total interest bearing debt                | 56         | 6 552      | 6 552     |
|                                            |            |            |           |
| New debt (issues)                          |            |            |           |
| Loan facility with Claret Capital Partners | 4 856      |            |           |
| New debt                                   |            | 3 140      | 3 140     |
| Closing balance                            |            |            |           |
| Non-current interest-bearing debt          | 4 567      | 47         | 42        |
| Current interest-bearing debt              | 13         | 1 326      | 14        |
| Total interest-bearing debt                | 4 579      | 1 373      | 56        |

On 16 June 2025 Norsk Titanium AS announced that it has entered into a loan agreement with Claret Capital Partners Ltd. ("Claret") for a term loan facility of up to USD 10 million (the "Loan Facility"). The facility from its growth credit fund, Claret European Specialty Lending Company Annex Fund I, will support the Company's working capital requirements and general corporate purposes and adds financial flexibility as the Company progresses towards its stated operational targets.

The Loan Facility will be made available in two tranches of USD 5 million each. The first tranche is immediately available upon execution of definitive agreements, while the second tranche will be accessible through 30 June 2026, subject to certain terms and conditions. The loan and all interest payments are secured by a security interest in all assets of the Borrower, including a pledge of shares in all subsidiaries of Borrower, bank accounts, intellectual property, and intragroup loans.

As part of the loan agreement, Claret will receive warrants for each tranche drawn, allowing subscription for shares in the Company with a total subscription value of USD 1.2 million (USD 600,000 per tranche). The number of shares that may be subscribed with the warrant is initially 4,583,643 based on the volume weighted average share price over the 15 business days preceding execution of the loan agreement for the first tranche. The issuance of the warrants and the waiver of shareholders' pre-emptive rights were approved by the Company's Annual General Meeting (AGM) on 6 May 2025, where the Board of Directors were authorized to enter into definitive loan and warrant agreements. The number of shares that may be subscribed with the warrants is subject to adjustment pursuant to the AGM resolution.

### **Alternative performance measures**

Norsk Titanium discloses alternative performance measures (APMs) in addition to those normally required by IFRS. This is based on the group's experience that APMs are frequently used by analysts, investors and other parties as supplemental information.

The purpose of APMs is to provide an enhanced insight into the operations, financing and future prospect of the group. Management also uses these measures internally to drive performance in terms of monitoring operating performance and long-term target setting. APMs are adjusted IFRS measures that are defined, calculated and used in a consistent and transparent manner over the years and across the group where relevant.

Financial APMs should not be considered as a substitute for measures of performance in accordance with the IFRS.

#### Norsk Titanium's financial APMs

**EBITDA** is defined as earnings before interest, tax, depreciation, amortization and impairment. EBITDA corresponds to operating profit/(loss) plus depreciation, amortization and impairment.

The table below reconciles the EBITDA from earnings before tax with the most directly comparable financial measure or measures calculated in accordance with IFRS.

|                                 | First half | First half | Full Year |
|---------------------------------|------------|------------|-----------|
| Amounts in USD thousand         | 2025       | 2024       | 2024      |
| Operating profit                | (15 956)   | (12 947)   | (26 470)  |
| + Depreciation and amortization | 832        | 891        | 1 749     |
| EBITDA                          | (15 124)   | (12 055)   | (24 721)  |

**Cash burn rate** is defined as Net Change in Cash and Cash Equivalents excluding Proceeds from issuance of shared capital and debt instrument, Transaction cost, Purchase and Sale of treasury shares and Increase (decrease) of debt.

The table below reconciles the Cash burn rate from Net changes in Cash and Cash Equivalents with the most directly comparable financial measure or measures calculated in accordance with IFRS.

| Amounts in USD thousand                    | First half<br>2025 | First half<br>2024 | Full Year<br>2024 |
|--------------------------------------------|--------------------|--------------------|-------------------|
| Net change in cash and cash equivalents    | (12 379)           | 22 730             | 22 731            |
| Proceeds from issuance of shared capital   | 9                  | 42 911             | 60 168            |
| Proceeds from issuance of debt instrument  | 4 856              | 3 140              | 3 140             |
| Transaction cost                           | 0                  | (2 324)            | (3 982)           |
| Increase (decrease) of debt                | (4)                | (7 331)            | (8 648)           |
| Net change from share capital transactions |                    |                    |                   |
| and increase/decrease of debt              | 4 861              | 36 396             | 50 677            |
| Cash burn rate                             | (17 239)           | (13 666)           | (27 946)          |
| Average monthly cash burn rate             | (2 873)            | (2 278)            | (2 329)           |

**Parts in serial production** is defined as unique part numbers delivered to customers for installation in assemblies and original equipment.

**Annual Recurring Revenue (ARR)** is defined as total annual revenue for parts in serial production based upon estimated percentage of market share allocated to Norsk Titanium.

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