February 10, 2023 Oyvind Birkenes, CEO Jeremy Gerst, CFO

4Q22 Presentation

Disclaimer

The following presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated ("relevant persons"). Any person who is not a relevant person should not act or rely on this presentation or any of its contents.

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 4Q results released on February 10th, 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

Muted fourth quarter

Sales revenue of USD 9.5M, down 10% YoY
- Renewed inventory caution at retail and channel partners
- Orders being pushed out in time
- Headwinds in Airthings for Business due to extended decision processes and reluctance to invest in the short-term
Gross profit margin of 59%
- Largely in line with prior quarters
1Q23 revenue guidance of USD 8.5 – 11.5M

4Q Highlights

22% growth in Consumer device registrations

Released new Consumer app at CES

Secured USD 8 million revolving credit facility with Danske Bank

Distribution partners reducing inventory and demonstrating renewed caution under difficult market conditions

2022 Gold Medal from EcoVadis and ISO27001:2022 certified

Launch of Energy Efficiency Toolkit for Airthings for Business

Key initial step to significantly improving energy consumption of buildings

Improving balance sheet via working capital improvements, sales and cost initiatives, and financing alternatives

Brand awareness

Continued coverage in leading publications around the world
Launch of new Airthings app at CES, a highly successful event garnering significant attention to the importance of indoor air quality (IAQ)
0.6 million Unique Web Visitors in 4Q22, and 3.1 million for the full year 2022 (up 48% vs. 2021)

Focus on sustainability

Significant strides taken since Airthings received an EcoVadis silver medal in 2021
Airthings scored in the top 3% of companies globally within Electronics and Equipment category

Steps taken in recent years

Enabling businesses to reduce energy consumption using air quality data
Utilizing circular principles to ensure responsible manufacturing
Creating long-lasting products with extensive battery life and 5-year warranties
Investing in building a widely diverse corporate culture which is passionate about reducing society's carbon footprint and improving people's health

Update by Segment

Consumer

For everyone with a home

Business

For commercial & public buildings

Pro

For home inspectors & radon professionals

Consumer Segment 4Q Update

Revenue of USD 6.2M, down 5% YoY
Gross Profit Margin was 57.2% in 4Q, down ~2% points from 3Q22
Heightened levels of promotional activities around Black Friday and the holidays
Channel and retail partners remain cautious on inventory levels
- Orders are being pushed out in time
- Inventories at our channel partners has decreased significantly during 2022
Device registrations shows end-demand remains strong
Global uncertainties continuing to affect market visibility

Continued growth in Consumer device registrations

New devices are registered when linked to an Airthings app
Proxy for true end-user demand of smart devices
Growth of 22% in 4Q 2022 vs. 4Q 2021
23% growth for the full-year

Business Segment 4Q Update

Sales revenue of USD 2.8M, down 14% YoY
60% Gross Profit Margin, in line with 3Q22
Share of business at 29%
USD 1.5M of 4Q22 revenue is from the large contract with global enterprise customer, while we sold a large contract to schools in Quebec in 4Q21

Rapidly expanding devices in the field

Devices in the field grew by 151% in 4Q 2022 vs. 4Q 2021, and up 17% vs. 3Q 2022
Driver of underlying growth in ARR

"Growing pains" for Airthings for Business

Airthings for Business has experienced significant growth over the past years
- CAGR of 169% from 2020 to 2022
However, "growing pains" are being experienced due to:
- Opportunistic approach to growth
- Manual processes and inefficiencies

Heightened discipline and focus going forward

Sharpen focus on:
- Target geographies and target segments
- Product and service offering
- Operational excellence and scalability
Further strengthen value proposition:
- Especially in terms of energy optimization offering
- Energy Efficiency Toolkit a crucial initial step (see next slide for more details)

Energy Efficiency Toolkit

Reducing energy waste and saving costs

Buildings consume 40% of the world's energy
- 30% of that comes from heating, ventilation, cooling (HVAC), and lighting
New software offering to enable end-users to significantly reduce energy waste
- Actionable data & insights on when and where HVAC systems are being underused or overused
- Proactive recommendations on how to optimally reconfigure HVAC schedule and settings, day and night
- Provides an easy way to save significant amount of energy for building owners and facility managers

Energy Efficiency Toolkit
IAQ Insights		Energy Insights
Time over Treshold		Heating & Cooling

Pro Sales Revenue (USD'000)

Pro Segment 4Q Update

Sales revenue of USD 0.5M, representing a decline of 35% YoY
Challenging home inspector market, leading to slow sales in the segment
85% Gross Profit Margin up 6%-points from 3Q22

Annual Recurring Revenue (ARR)

ARR of USD 3.6M, up 26% YoY
ARR from PRO segment remains constant
- Increase from 3Q was driven by Airthings for Business with 43% growth YoY
>80% gross profits from ARR
1Q23 ARR guidance of USD 3.7 – 4.0M, 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 December multiplied by 12)

Financials Jeremy Gerst, CFO

Challenging Inventory situation

Muted revenue results in 4Q resulted in further build-up of Inventories
Increase in Average Days of Inventory from 370 to 466
Aggressive steps are being taken to bring down Inventories in 2023 including promotional activities and campaigns
USD 8 million revolving credit facility from Danske Bank will supplement operational efforts to improve working capital situation

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

Income Statement

Sales revenue of USD 9.5M in 4Q22, down 10% YoY

• Revenues of USD 35.4M in 2022, up 5% from 2021

Sales gross margin at 59% for 4Q and 2022

EBITDA of USD -2.8M

• Reduced Payroll expenses and other operating expenses

EBIT of USD -3.1M

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

(USD'000)	4Q22	4Q21	2022	2021
Total revenue	9 459	10 555	35 424	33 699
Cost of sales	3 863	4 487	14 465	13 041
Gross profit	5 596	6 068	20 959	20 658
Sales Gross Margin	59%	57%	59%	61%
Payroll expenses	4 338	4 705	16 654	15 127
Other operating expenses	4 013	4 501	16 090	13 566
EBITDA	-2 755	-3 139	-11 785	-8 035
Depreciation and amortization	315	377	1 355	1 335
Impairment	0	0	1 522	0
Operating profit / EBIT	-3 069	-3 515	-14 662	-9 371
Financial income / (expenses)	-1 212	0	965	55
Profit (loss) before tax	-4 282	-3 516	-13 697	-9 315
Income tax	-1 032	-2 141	-3 131	-2 055
Net profit (loss)	-3 250	-1 374	-10 566	-7 261

Earnings per share (USD)
Basic earnings per share	-0.02	-0.01	-0.06	-0.04

Diluted earnings per share -0.02 -0.01 -0.06 -0.04

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
Lower Provisions due to segment mix

(USD'000)	31.12.2022	31.12.2021
Assets
Intangible assets	2 459	2 495
Goodwill	2 872	3 210
Property, plant and equipment	830	809
Right -of-use assets	3 140	4 241
Deferred tax assets	7 108	4 509
Other non -current assets	132	1 075
Total non -current assets	16 541	16 339
Inventories	18 713	11 429
Trade receivables	11 099	11 850
Other receivables	4 115	1 889
Cash and cash equivalents	13 274	42 174
Total current assets	47 202	67 342
Total assets	63 742	83 680
Total equity	50 928	67 842
Non -current lease liabilities	2 554	3 803
Deferred tax liabilities	0	0
Non -current provisions	125	1 090
Total non -current liabilities	2 707	4 892
Lease liabilities	850	670
Trade and other payables	6 177	7 027
Contract liabilities	1 111	894
Income tax payable	60	27
Government grants	0	0
Provisions	1 938	2 328
Total current liabilities	10 136	10 946
Total equity and liabilities	63 742	83 680

Cash Flow Statement

Cash flow from operating activities USD -6.0M

Operating profit
Net working capital due increase in Inventories

Cash flow from investment activities of USD -0.5M

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

Cash flow from financing activities of USD -0.1M

Net unrealized foreign exchange difference of USD 2.9M

Summary and outlook

Summary

Revenue of USD 9.5M, down 10% year-on-year and Gross Profit Margin of 59%
Muted results in both the Consumer and Airthings for Business segments due to distribution partners lowering inventories to reduce working capital in a generally uncertain market environment
Reduced inventories in our Consumer channel partners throughout ²⁰²²
Given overall market uncertainties, Airthings is intensifying its focus on:
- Optimizing business operations, reducing inventories, and improving the cash position
- Sharpening the strategic direction of Airthings for Business and enhancing its value proposition
These focus areas are expected to enable Airthings's profitable long-term growth ambitions
However, the company acknowledges that it is unlikely to fulfill its ambition to reach ^a revenue level of USD 100M already in 2024

Fully underwritten share issue

Based on the Company's financial position, the board of directors of the Company has resolved to propose ^a private placement of new shares to raise NOK 75 million
The private placement is planned to be conducted after close of trading on the Oslo Stock Exchange on ¹³ February ²⁰²³
The Company's largest shareholder, Firda AS, together with ^A Management AS has committed to subscribe for and be allocated NOK 50 million in the private placement
Firda AS, together with ^A Management AS have also committed to guarantee full subscription of the remaining NOK ²⁵ million at a subscription price of NOK 3.20
Completion of the private placement will be subject to approval by an extraordinary general meeting of the Company
Following completion of the private placement, the board will consider ^a subsequent offering of new shares to shareholders who hold shares below a certain threshold and were not allocated shares in the private placement

1Q23 Outlook

1Q23 revenue estimated at USD 8.5 11.5M
ARR expected to grow to USD 3.7 4.0M by the end of the first quarter

Guidance 1Q23

Revenue and ARR guidance (USD M)	1Q23
Revenue	8.5 – 11.5
Annual Recurring Revenue	3.7 – 4.0

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