May 4, 2023 Oyvind Birkenes, CEO Jeremy Gerst, CFO

1Q23 Presentation

Disclaimer

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This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in Airthings ASA (The Company). The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions.

This presentation includes and is based, inter alia, on forward-looking information and contains statements regarding the future in connection with The Company's growth initiatives, profit figures, outlook, strategies and objectives. All forward-looking information and statements in this presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for The Company. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions.

Important factors may lead to actual profits, results and developments deviating substantially from what has been expressed or implied in such statements. Although The Company believes that its expectations and the presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the presentation.

The Company is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the presentation, and neither The Company nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.

This presentation was prepared in connection with the 1Q results released on May 4th, 2023. Information contained herein will not be updated. The following slides should also be read and considered in connection with the information given orally during the presentation.

Empower the world to breathe better

High-growth and expanding business

Largely flat first quarter

Sales revenue of USD 8.8M, down 3% YoY
- Modest growth in Consumer segment supported by promotional activities
- No large rollouts in 1Q23 for Airthings for Business. Some key projects delayed
Gross profit margin of 56%
- Heavy promotional activity in Consumer segment
2Q23 revenue guidance of USD 7.0 – 9.0M

1Q Highlights

Brand awareness

Continued coverage in leading publications around the world
Most successful Airthings Masters chess tournament ever, with 11M+ live views
Listed in Fortune's 25 Top Health and Wellness Products for 2023
Continued partnership with American Lung Association as part of US Radon Action Month

Update by Segment

Consumer

For everyone with a home

Business

For commercial & public buildings

Pro

For home inspectors & radon professionals

Consumer Segment 1Q Update

Revenue of USD 6.4M, up 4% YoY
Gross Profit Margin was 49% in 1Q, down ~8% points from 4Q22
- Intensive promotional activities to reduce inventory levels
Increased focus and growth on D2C from airthings.com
Device registrations continues to demonstrate strong end-demand

Continued growth in Consumer device registrations

New devices are registered when linked to an Airthings app
Proxy for end-user demand of smart devices
Growth of 30% in 1Q 2023 vs. 1Q 2022
Growth in device registrations outstripped revenue growth due to promotional activities in the quarter

Business Segment 1Q Update

Sales revenue of USD 1.7M, down 23% YoY
69% Gross Profit Margin
- Higher than typical due to larger share of subscription revenues
Despite some short-term market headwinds, we won some key projects
- Major Ivy League university in the US
- Started a large rollout with one of the global top tier service and consultancy companies
- Continued expansion with Norwegian municipalities

Devices in the field continuing to expand

Devices in the field grew by 86% in 1Q 2023 vs. 1Q 2022, and up 10% vs. 4Q 2022
Driver of underlying growth in ARR

Case study: Hamar Municipality in Norway

1,500 Airthings air quality monitors installed
Based mostly on the data and insights from Airthings, reduced their energy consumption with 2 million kWh from 2021 to 2022
- Corresponding to a savings of over NOK 6 million and a payback period of less than a year

"Without Airthings sensors in our buildings, control of the buildings is basically done in the blind. In addition, the indoor climate in the buildings has improved. The Airthings solution has become a very important tool to improve indoor environments and energy consumption at Hamar Municipality."

Magnar Hommerstrand, Director of Energy and Technical Installations

Pro Segment 1Q Update

Sales revenue of USD 0.6M, representing a decline of 10% YoY
Challenging home inspector market, leading to slow sales in the segment
87% Gross Profit Margin up 2%-points from 4Q22

Annual Recurring Revenue (ARR)

ARR of USD 4.0M, up 27% YoY overall, and up 43% YoY for AfB
Growth in ARR driven by increases in both the Airthings for Business and PRO segments
>80% gross profits from ARR
2Q23 ARR guidance of USD 4.0 – 4.3M, mainly driven by continued new sales in Airthings for Business

Note: Note: ARR equals annualized sales from all active subscriptions, licenses and service contracts within AfB and Pro. (i.e. subscription service revenues booked in March multiplied by 12)

Financials Jeremy Gerst, CFO

Elevated but improving Inventory situation

USD 1.6M decline in overall Inventories over the course of 1Q
Modest decline in Average Days of Inventory from 466 to 422
These improvements reflect the active steps taken in terms of promotional activities and campaigns
The continued elevated levels of Inventories, however, warrant further steps being taken over the course of 2Q and potentially into 2H

Note: Days of Inventory calculation – Inventories / (4 quarter rolling average COGS) * 90 days in quarter

Income Statement

Sales revenue of USD 8.8M in 1Q23, down 3% YoY

Sales gross margin of 56% in 1Q

• Reflecting reduced margins in the Consumer segment from promotional activity

EBITDA of USD -3.2M

• Reduced Payroll expenses and other operating expenses compared to 1Q22

EBIT of USD -3.6M

• Depreciation of right-of-use assets for leases recognized under IFRS 16

(USD'000)	1Q23	1Q22	YTD 2023	YTD 2022
Total revenue	8 752	9 062	8 752	9 062
Cost of sales	3 887	3 735	3 887	3 735
Gross profit	4 865	5 327	4 865	5 327
Sales Gross Margin	56%	59%	56%	59%
Payroll expenses	4 172	4 432	4 172	4 432
Other operating expenses	3 899	4 329	3 899	4 329
EBITDA	-3 206	-3 434	-3 206	-3 434
Depreciation and amortization	387	375	387	375
Impairment	0	0	0	0
Operating profit / EBIT	-3 593	-3 809	-3 593	-3 809
Financial income / (expenses)	988	-288	988	-288
Profit (loss) before tax	-2 605	-4 097	-2 605	-4 097
Income tax	524	-966	524	-966
Net profit (loss)	-2 081	-3 131	-2 081	-3 131

Earnings per share (USD)
Basic earnings per share	-0.01	-0.02	-0.01	-0.02

Diluted earnings per share -0.01 -0.02 -0.01 -0.02

Balance Sheet

Change in assets

Deferred tax asset
Inventories due to build up of supply
Other receivables
Cash due to profitability, working capital, and exchange rates

Change in liabilities

Significant portion of equity decline due to exchange rate between NOK and USD
Decline in long -term liabilities
Trade and other payables

(USD'000)	31.03.2023	31.03.2022
Assets
Intangible assets	2 599	2 884
Goodwill	2 702	3 236
Property, plant and equipment	752	893
Right -of-use assets	3 004	4 160
Deferred tax assets	7 246	5 523
Other non -current assets	129	682
Total non -current assets	16 432	17 377
Inventories	17 116	12 947
Trade receivables	10 378	10 321
Other receivables	6 204	4 004
Cash and cash equivalents	15 427	35 607
Total current assets	49 126	62 879
Total assets	65 558	80 256
Total equity	52 890	65 465
Non -current lease liabilities	2 396	3 636
Deferred tax liabilities	0	0
Non -current provisions	119	682
Total non -current liabilities	2 515	4 892
Lease liabilities	864	779
Trade and other payables	6 207	7 173
Contract liabilities	1 360	963
Income tax payable	36	10
Government grants	0	0
Provisions	1 686	1 550
Total current liabilities	10 153	10 475
Total equity and liabilities	65 558	80 256

Cash Flow Statement

Cash flow from operating activities USD -3.2M

• Operating profit

Cash flow from investment activities of USD -0.4M

• Internally generated intangible assets, purchase of software, production tooling and office equipment

Cash flow from financing activities of USD 6.9M

• Capital raise conducted in the quarter

Net unrealized foreign exchange difference of USD -1.2M

Summary and outlook

2022 was a challenging year

Airthings' approach … … created challenges for the company

Go-to-market strategy pursuing multiple channels and countries at the same time

Channel conflicts
Elevated inventory levels
Deterioration of cash position
Focus on top-line growth versus unit economics and driving down variable costs
Decisions impacted by shorter-term revenue focus over long-term profitability

Combined with macroeconomic headwinds, these challenges made it apparent that Airthings needed to re-examine its approach and strategy

Airthings' refined strategy, focused on three key pillars

Go-tomarket strategy

Own the customer relationship and move towards a digital-first GTM model
Improve scalability and unit economics
Narrow geographic focus, and go deeper rather than broader

Product focus

Become a hardware-enabled software company, with a software-first mentality
Create awesome customer experiences and sell more to existing customers

Operating model

Transition to a more automated way of operating that properly enables growth
Focus on continuously reducing both variable and fixed costs

More details and progress to be shared in Airthings's Capital Market Update in October

Summary

Revenue of USD 8.8M, ARR of USD 4M, and Gross Profit Margin of 56%
Modest growth in the Consumer segment, supported by promotional activities to reduce inventory levels
Low revenue from Airthings for Business segment in 1Q23 as some key projects have been pushed out in time
Reduction of overall inventory levels and modest improvement seen in Days of Inventory
Updated strategy to support Airthings' profitable long-term growth ambitions along three main pillars:
- Refined go-to-market strategy
- Becoming a true hardware-enabled software company
- Automating the operating model

2Q23 Outlook

2Q23 revenue estimated at USD 7.0 9.0M
ARR expected to grow to USD 4.0 4.3M by the end of the second quarter

Guidance 2Q23

Revenue and ARR guidance (USD M)	2Q23
Revenue	7.0 – 9.0
Annual Recurring Revenue	4.0 – 4.3

Long-term outlook supported by lasting factors and megatrends

About 55 million people have asthma in the US and Europe combined. Particle pollution is found to be a major cause of asthma
Rapid increase in instances of wildfires in the US and globally showing an increase in the risk of both cardiovascular- and respiratory-related effects
Increasing IoT adoption is fueling growth of smart home market going forward

Business Segment

~4/5 of today's building will still exist in 2050 meaning we need to find ways to improve their sustainability
40% of global energy consumption comes from commercial buildings representing an enormous opportunity to save costs and CO2
Most existing buildings don't have an automated system for HVAC control
6 out of 10 students are exposed to CO2 levels higher than the recommended threshold of 1,000 ppm
Regulation and Legislation for building energy performance and health of workers
IoT and digitalization for more efficient facility management
ESG and sustainability

Breathe better. Live better.

Q&A