Airthings — Investor Presentation 2020

Nov 19, 2020

3Q20 Presentation

19 November 2020

Geir Førre, Chairman Øyvind Birkenes, CEO Erik Lundby, CFO Martin McGloin, Product Manager

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 3Q results released on November 19th, 2020. 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.

PURPOSE

3

Empower the world to breathe better

MISSION

4

Airthings is on a mission to ensure people around the world take control of their air quality through simple, sustainable and accessible technology solutions – making radon and air quality solutions an essential and universal element for every building or home

Hardware-enabled software company addressing global issues

• ⊗ Cause of cancer, asthma and allergies
• ⊗ Increased risk of transmission of viruses and bacteria
• ⊗ Reduced productivity, poor sleep, and well-being
• ⊗ Wasted energy usage

• ⊕ Leader and thought-leader of indoor air quality monitoring
• ⊕ World leading products and solutions that are easy to use for B2C and B2B
• ⊕ Actionable insights enabled by analytics and machine learning
• ⊕ Open ecosystem and user-friendly dashboards

40% of global energy consumption from buildings

There are energy saving opportunities in all buildings

ENERGY REDUCTION WITH AIRTHINGS

More than 10% of energy consumption can be saved by optimizing heating, ventilation and air conditioning

ENERGY REDUCTION WITH AIRTIGHT

On average during operating hours, 15% of energy consumption can be saved by aligning indoor and outdoor pressure with Airtight

Airthings enables a reduced CO2 footprint

High-growth business with an international footprint

76,8% Americas 23,2% Europe REVENUE SPLIT (3Q20)

HQ in Oslo, with offices/sales out of Chicago, Stockholm, Boston, Atlanta, Florida, Munich, London, Bergen, and Quebec City

~100 employees from more than 25 nations

Our core value propositions

Three main business units, also serving as segmentation in our financial reporting

For everyone with a home

For consumers

For facility management, system integrators & HVAC and public sector

For business

For home inspectors and radon professionals

For pro

The Airthings system

Highlights 3Q20

Main events during the third quarter

Strong growth in 3Q

• 50% YoY growth with 3Q20 revenues of NOK44m. Sales revenues of NOK42.3m
• YTD growth of 57%
• Airthings for Business growing fast with 308% YoY growth to NOK4m
• Consumer growth of 36% to NOK 33.9m
• PRO growth of 89% to NOK4.5m
• Still limited effect from Airtight
• Annual Recurring Revenues of NOK7.3m EoP 3Q

Annual Recurring Revenue (ARR)

• Exponential growth continues
• Strong execution especially towards
  • Public sector
  • Facility management partners
  • System integrators
• Airtight product to boost ARR going forward
• Creates increasing forward revenue visibility

Consumer 3Q update

• 3Q Sales revenues of NOK33.9, representing 36% YoY growth despite some promotional activities and new store roll-outs pushed out from 3Q (COVID-19)
• Increased awareness of Air Quality due to wild-fires and COVID
• Improved Amazon Review scores, and high sales growth of our smart products
• >NOK30m order from Amazon US for 4Q delivery
• Home Depot roll-out is already generating weekly reorders
• The Mold Risk Indicator has significantly increased growth rate and reviews of Wave Mini
• Introduction of House Kit in 2Q drove higher AUP in 3Q
• Challenge with competitive pricing between US retailers is creating market price fluctuations

Airthings for Business 3Q update

• Sales revenue of NOK4m, representing 305% YoY growth
• Revenue and ARR growth driven by Facility Management, Public Sector, and System Integrators
• Airtight acquisition integration started
• Opened Stockholm office with an experienced sales team from Yanzi Networks
• Added sales coverage in Atlanta and Boston, in addition to the US coverage in Chicago and New York
• Signed global partnership and reseller agreement with Schneider Electric
• High attention on air quality due to COVID-19. Significant increase of inbound leads and new sales.

Pro 3Q update

• Sales revenue of NOK4.5m, representing 86% YoY growth
• High demand from Home Inspectors with strong realestate market in the US
• Strong backlog with supply challenges end of 3Q
• New mobile APP and Web Dashboard with improved user experience is creating a higher demand

bast MEASUREMENT SUMMARY			9:00 411 Device-A - of Device 1 - 123734-1 @ D	Temperature (F
			UPDATE AVAILABLE Plemmare 2.2.0
	On RADON LEVEL		LATEST MEASUREMENT hour age
0.0 pCirL MINIMUM	0.3 pCi/L AVERAGE	1.0 p MAXA	Rados GC 15 Ba/mª 12-06- 10. Sep-	17.00
	HUMIDITY		8 22' 0 20% C 101.50 Bar %rH	Humidly Chr
49.5%H	52.714 % ch	59 4	LATEST DATASETS (2) VOLAL
Minimum	AVERAGE	MAXI	Test-new-hampshire 2
	TEMPERATURE		Costomer: B.Starthip.
70.88 *F	72,871 *F	74.84	12:00 Submit Comments Sep 1 1	10. Bep 12:00
MEDITION POL	AVERAGE	MAJER	B kPa Annoopheric Pressure (kPa)
			Unnamed 1
0	ATMOSPHERIC PRESSURE		Submit Comments
83,448 KPa	83.777 kPa	84.034
MINIMUM	AVERAGE	MAXE
	Tampering events occurred as followed		Sap 12:00 10. Beg START TEST &	12:00

Significant growth in web traffic and press coverage

Financials

3Q Key figures

Revenues up 50% YoY

Gross margin at 64% down 9%-points YoY

• Higher share of AfB product sales with lower margin
• Campaigns in conjunction with HD roll-out
• Amazon deal of the day on Wave Plus

EBIT of –NOK10.7m

• Increased personnel expenses in accordance with expansion plan
  • Took on entire Yanzi sales-team
  • Acquired Airtight and brought on entire team
• Performance marketing costs
• Campaign costs

	Unaudited	Unaudited	Unaudited	Unaudited	Audited
Consolidated income statement (NOK 1 000)	3Q20	3Q19	YTD 2020	YTD 2019	2019
Sales	42 186	28 176	130 810	80 743	139 472
Other revenues	1 805	1 068	2 065	3 472	4 809
Total revenue	43 991	29 243	132 876	84 216	144 281
Cost of sales	16 006	8 103	44 017	23 738	39 202
Gross profit	27 985	21 140	88 858	60 478	105 079
Payroll expenses	17 746	10 806	57 591	34 182	47 979
Other operating expenses	20 216	19 425	62 394	45 492	68 805
Depreciation and amortization	694	276	1 742	802	694
Operating profit / EBIT	-10 671	-9 368	-32 869	-19 999	-12 398
Financial income	5 315	-3 531	13 835	2 340	4 374
Financial expenses	5 310	-3 883	10 836	2 557	5 161
Financial income / expenses - net	5	353	2 999	-216	-787
Profit (loss) before tax	-10 666	-9 015	-29 870	-20 216	-13 186
Income tax	-9	-3	-13	-21	3 992
Net profit (loss)	-10 676	-9 018	-29 883	-20 236	-9 194
Pre-split earnings per share (NOK)*
Basic earnings per share	-16.52	-15.88	-48.57	-37.05	-24.13
Diluted earnings per share	-16.52	-15.88	-48.57	-37.05	-24.13
Post-split earnings per share (NOK)**
Basic earnings per share	-0.08	-0.08	-0.24	-0.19	-0.08
Diluted earnings per share	-0.08	-0.08	-0.24	-0.19	-0.08
*EPS is calculated using pre-split average shares outstanding for the period. Split of 200 was completed October 2020.

Cash flow

Negative cash from operating activities

• According to plan
• Negative operating profits
• Increased accounts receivables

Negative cash from investment activities

• Airtight acquisition

Positive cash from financing activities

• Capital raise to acquire Airtight
• Instalments on long-term debt deferred due to Covid-19

NOK500m private placement in conjunction with IPO in 4Q

Balance sheet

• Change in non-current assets reflects acquisition of Airtight
• Change in current assets due to capital raise in conjunction with acquisition and IPO
  • Change in cash and cash equivalents reflects capital raise in 2Q and 3Q
  • Raised additional NOK500m in private placement in conjunction with IPO in 4Q
• 27% of long-term interest-bearing debt expected paid down next 12 months
  • Instalments halted on growth loan until October 2020.

	Unaudited	Audited
Consolidated balance sheet (NOK 1 000)	30.09.2020	31.12.2019
Assets
Research & development	4 572
Licenses	4 689	3 672
Deferred tax asset	4 477	4 477
Goodwill	39 029
Tangible assets	4 061	2 312
Long-term receivables	790	337
Total non-current assets	57 616	10 798
Inventory	30 478	29 029
Accounts receivables	41 085	40 737
Other short term receivables	19 604	14 169
Cash and cash equivalents	95 026	49 077
Total current assets	186 194	133 012
Total assets	243 810	143 809
Equity and liabilities
Total paid-up equity	221 204	97 820
Other equity	-28 340	-314
Total equity	192 863	97 507
Interest bearing long-term debt	12 373	17 889
Other provisions	547
Total non-current liabilities	12 920	17 889
Accounts payable	18 193	12 149
Tax payable	113	39
Public duties payable	2 578	3 416
Interest bearing short-term debt	4 683
Other short-term debt	12 460	12 810
Total current liabilities	32 345	28 414
Total equity and liabilities	243 810	143 809

Growth initiatives

For everyone with a home

For consumers

Improved and expanded online presence, including Amazon

Entering new markets

Localized air quality and radon awareness campaigns

Expanding retail presence

New products and features based on feedback and demand

For facility management, system integrators & HVAC and public sector

For business

Adding bandwidth with new sales offices Expanding Airtight into Europe and US

Focusing on enterprise customers and global distribution partners

Virus Risk Indicator campaign

New products and features

For home inspectors and radon professionals

For pro

Airthings calibration lab opened in Massachusetts

Moving all US annual calibration to Airthings internal lab

New certifications to increase total available Home Inspector market

Launching Airthings Pro Academy

Ongoing campaigns

Virus Risk Indicator

• Launched November 18th
• Relevant for Schools, offices, and public buildings around the world

Radon season campaign

• Canada and Norway in November, US in January
• Ads, PR, digital campaigns, radio ads

Fire & Safety month

• Campaigns with retailers in the US

Virus Risk Indicator

For buildings where people thrive, but viruses don't.

• Monitor, manage and reduce the transmission risk of airborne virus within an office, school or public building.
• Internally developed algorithm uses the CO2, temperature and humidity sensors in the Wave Plus for Business to calculate an hourly risk score and most effective solutions.
• Only available as part of an Airthings for Business subscription.

Outlook

4Q20 Guidance

• Revenue of NOK70.5m – 84.5m
• Year-end ARR of range of NOK11m – 13m

2024E

Revenue of NOK1 000m+

Breathe better. Live better.