Airthings — Investor Presentation 2021

Oct 28, 2021

2021 Capital Markets Update

October 28th, 2021

Aksel Lund Svindal, Chairman Øyvind Birkenes, CEO Magnus Bekkelund, CFO

Lauren Pedersen, CMO Pål Berntsen, VP&GM Airthings for Business Jørgen Solstad, Head of Product, Consumer

Link to introvideo: https://youtu.be/CUTXBxXdKBs

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PURPOSE

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Empower the world to breathe better

Presenters Why Airthings?

Chairman, Aksel Lund Svindal

Continuing our growth journey CEO, Øyvind Birkenes

Raising global awareness CMO, Lauren Pedersen

Quality air in every home Head of Consumer Products, Jørgen Solstad

Airthings for Business VP & GM for Business, Pål Berntsen

Financial perspectives CFO, Magnus Bekkelund

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 Capital Markets Update on October 28th, 2021. 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.

Airthings is addressing major global issues

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• World leading products and solutions for homes and buildings
• Actionable insights and control enabled by advanced analytics
• Significantly reducing the energy consumption of buildings
• API integrations for buildings and smart-home integrations for consumers

The global benchmark of air monitoring and control – setting the agenda on how air impacts our life and how we act on it

We deliver clear value propositions

in homes

Improve productivity and overall health

in offices

Improve academic performance and attendance while reducing health risk and viruses

at schools

Improve energy efficiency, air quality, and area utilization

in buildings

Three business segments

For commercial & public buildings

Business

For home inspectors & radon professionals

Pro

The #1 air quality technology in the world

The Airthings System is based on cloud analytics

Systems (IWMS)

Key Growth Drivers

• 1. Great Products, Solutions, and Roadmaps
• 1. Expanding Brand, Regional Footprint, Sales Channels and Partner Network
• 1. Regulations and Legislations
• 1. IoT and Digitization
• 1. Sustainability

founded

Great Products and Solutions

Expanding Sales Channels & Global Partner Network Growth Driver 2:

Growth Driver 3:

Regulations and Legislations

New York City Council requires buildings to cut emissions 40% by 2030 to align with Paris accord

Germany, Netherlands, California, New York, and Quebec have released new guidelines for Air Quality in schools

EU's strategy of achieving carbon neutrality by 2050

EU radon legislation for homes and workplaces

EU Taxonomy to clarify which investments mitigate carbon emissions

US Home Inspections that require radon tests are expanding to also multi-family homes

Growth Driver 4:

Increasing IoT adoption fueling smart home and building automation market

Sustainability and ESG Growth Driver 5:

Airthings is:

• Making buildings smarter and more energy efficient
• Prolonging lifetime of buildings
• Improving peoples health
• Educating about air quality
• Implementing circular principles to our products and solutions

Where we are and financial targets

Status 1-year after listing

• Met our plans for Revenue and GPM despite challenging supply of components
  • 2021 Revenue growth of 50 % to 322 NOKm (midpoint of 4Q guiding range)
• On schedule to our 2024 targets
  • 1000 NOKm+ in revenue and 200 NOKm+ in ARR
• Executed product roadmap for HW and SW according to plan
• Invested in future growth with R&D, Sales, and Marketing
• Improved EBITDA%
  • Growing Revenue faster than Operational Expenses (OPEX) while keeping a strong GPM%
• Won major customers and partners like Walmart, CVS, Carrier, Schneider, and a major expansion with Home Depot

3Q Achievements

Investing in long-term profitable growth

* Midpoint of estimated revenue range 2021e

Investing in people

Investing in People

Øyvind Birkenes CEO

Magnus Bekkelund CFO

Audhild Randa COO

CMO

Torje Carlson VP & GM, Consumer

VP & GM, Business

Erlend Bolle CPO

Anita Øverbekk Director of HR

Leadership Team

• A great company culture
• 131 employees from >30 different nationalities

• 70% Master degree or higher

• Several domain experts, particle physicists, and PhDs
• 47% of employees are in R&D 43% are in Sales and Marketing

Raising global awareness

Lauren Pedersen, CMO

Our goal is to be the world leader in indoor air quality solutions

How are we building our brand and driving demand for our products?

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Marketing Framework

Starts with raising awareness

People have historically known very little about the air they breathe.

Awareness

Air quality has a massive impact on our lives

Health

From asthma and allergies to radon induced cancer and the spread of airborne virus - indoor air quality is key.

Sustainability

How we treat the air in our buildings is also key to optimizing energy usage and making our cities sustainable.

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The world is starting to catch on – air quality 'going mainstream'

We are educating the world about air quality

Airthings.com

Helping people understand air quality and strengthening SEO

Radonmap.com

No one has more radon data than Airthings

Airforkids.com

Awareness

Educating kids about air quality

Positioning ourselves as thought leaders with journalists and industry analysts

Awareness

Building partnerships that reinforce this positioning

American Lung Association

• Indoor Air Quality Guide for Schools
• Goal to reach 10 000 schools

Champions Chess Tour

Awareness

Awareness

• Live air quality data in the broadcast
• Over 100 million views
• 28 million hours watched

Creating excitement and networking at the world's leading consumer electronic and proptech events

Engaging on social media with timely and catchy content

April Fools Day

Over 180k impressions on one tweet

Lockdown Campaign Millions of views

Chess Commentary

High engagement

Running campaigns to drive demand

Example consumer campaign:

Teaser: Reach: 2.1 million

Product launch: Reach: 1 million

Site visits: +150k

Pre-sales: Sold-out

Building up a large pipeline of B2B leads

Example B2B campaign:

Video reach: 280k impressions

Site visits: 2 360 clicks

Leads: 167 leads

Marketing qualified leads (MQL): 47

Opportunities: 32

Deals won (already): 2

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Co -marketing to scale -up with our partners

Retail and e -commerce partners

B2B partners

Conversion

Conversion

Once they are a customer, we focus on loyalty & upselling

Consumer:

• Upsell to full home solution
• Give us recommendations & reviews

Business:

Loyalty

• Upsell more devices expand portfolio
• Keep subscribers

Where are we today?

Our brand today is gaining International recognition

Solid framework to ensure a strong ROI on advertising

NOK 200 – 250 marketing cost per device sold Average unit price approx. NOK 1200

• Lifetime customer value is higher than the individual purchase
• Scaling up Airthings for Business increases lifetime value (ARR)
• Individual deals still have a big impact on the figures

So what now?

Marketing framework working – now its time to scale-up

• Continue to increase brand awareness and position Airthings as the leader in indoor air quality solutions
• Drive higher demand and conversion rates for Airthings products in all channels
• Scale-up AfB lead generation and B2B partner marketing to fill the sales pipeline

Quality air in every home

Jørgen Solstad, Head of Product, Consumer

…for consumers

Make Air Quality monitors as common as smoke detectors" "

Megatrends

HEALTH TECH SMART HOME

Market potential

Less than 1% of homes have an indoor air quality monitor

Estimated more than 400 million homes in the US & Europe

Multiple problems in multiple rooms in every home

World Leader in Indoor Air Quality Solutions

Customer praise

Home

"A small price to pay, for reducing health risks." "Same readings as professional test" "A great tool to have. I highly recommend it"

"The Airthings Home is currently the best instant radon detector on the market, able to check multiple areas of your home." – Digital Trends

"The best app and the best system out there" "Have two of them, both meet my needs"

"Very impressive" – Dinside

"The most powerful air quality monitor we have run into at the consumer level." - Poc Network / Tech

Channel strategy

(North America as an example)

Market leading position with wide reach

Amazon Premium retailers Direct channels

Creating a category for indoor air quality monitors

Educate, engage and upsell our solutions to existing customers

Strategy effects

(North America as an example)

"Amazon choice", category leading for both Radon & indoor air quality monitoring

5000+ in North America 6000+ worldwide

Amazon Direct channels

20% of new user signups last quarter own 2+ devices

Strategy results - Consumer

>230m

Revenue growth

From NOK 51 million in 2017 to more than NOK 230 million in 2021

Airthings for Consumers

Profitably contribute more than NOK 600m to 2024 revenue

Multi-device ecosystem

Expanding on proven channel strategy

Global ambitions

Make Air Quality monitors as common as smoke detectors

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Airthings for Business

Pål Berntsen, VP & GM Airthings fir Business

for Business

1. Market Fit 2. Today 3. Future

Market fit

What are our Ambitions?

Be the preferred Indoor Air Quality solution provider for all schools and Commercial buildings

Be the preferred data provider for building operations and control

Why monitor and control air?

Healthy indoor climate

Energy efficiency

Efficient Facility management

There is a lack of data in buildings

Make the invisible visible

What can our data enable?

Actionable Insights & Transparency

Compliance & Reporting

The market

40% of global energy consumption comes from buildings

4/5 of todays buildings will still exist in 2050

AWARENESS AWARENESS AWARENESS

Enormous Market

412B \$ IoT Market to reach USD 412B by 2025

505% growth in Proptech funding last five years

Today

So far...

What we do today

Go to market

Partner Centric Model

Airthings for Business target markets

Partners execute majority of sales Target end customers

Healthy indoor climate

JLL is specialized in real estate and has more than 280 corporate offices worldwide from which they provide services to clients in more than 80 countries.

"The pandemic has pushed landlords and property managers to take a closer look at building health and many are now implementing new strategies to improve air quality"

JLL Podcast, October 2020

The Result

• They selected Airthings as the Vendor to improve air quality
• Increased Tenant satisfaction
• Savings of \$135 000 due to low installation cost.

Efficient Facility Management

East Porter County School District installed Airthings for Business products to understand how their air quality was impacting student performance, energy costs, and the transmission of COVID-19.

"Airthings have been a great tool for helping us to maintain and enhance the air quality in our buildings."

Craig Kenworthy, Facilities Director

The Result

• Identified several faults in the ventilation system
• \$23,250 in annual energy savings realized by only ONE school
• Reduced CO2 levels in Classrooms to keep the students safe and create the best learning environment.

Energy efficiency

"Frydenbø had a bold goal of reducing their energy consumption by 20% with Airthings for Business"

Håvard Fjæreide, Vice President Frydenbø Eiendom

The Result

• Already improved Energy Efficiency with 16%
• Has complete control of their building portfolio with remote air quality control across all properties

The future

Goals 2024

Legislations

#2 Sustainability & IOT Digitization

#2 Sustainability & IOT Digitization

1. Collecting data in selected occupied parts of the building

2. Collect data in all occupied spaces in the building

3. Energy saving opportunities

Airthings for Business

Contribute more than 400 NOKm revenue and more than 200 NOKm ARR in 2024

Financial perspectives Magnus Bekkelund, CFO

Revenue and ARR development

• Continued strong YoY growth across all segments during 2021

* Midpoint of estimated revenue range 2021e

Strong YoY growth across all segments

Gradually increasing leverage on our investments

Investing in long-term profitable growth

* Midpoint of estimated revenue range 2021e

Our cash balance supports our growth plan

Solid growth path to reach > 1 NOKbn in revenues by 2024

• Just the beginning the growth will continue
• Continue to focus of growing and invest in R&D, sales & marketing department to support long-term growth and demand
• We expect a «significantly larger» Airthings with an operating model with profitable growth
• We have a sufficient cash position to continue the organic growth
• We are on our path to reach the 2024 goals!

2024 Goal
Revenue of NOK 1000m+
ARR of NOK 200m+
Global leader in indoor air quality for homes and businesses

Guiding principles going forward

• Maintaining quarterly guiding on revenue and ARR for next quarter
• As we are getting close to our 2024 targets, we are abandoning annual revenue guiding from 2022
• Introducing long-term target model with gross margin of ~65% and EBITDA >25%

World class products and solutions with a scalable business model

• B2C and B2B
• Homes and Buildings globally
• Air Quality and Energy Optimization
• Awareness, Monitoring, Analytics, Insights, Control, and Solutions

Enormous market opportunity

• The consumer market for indoor air quality is still in its infancy
  • Creating a category for air quality
  • We expect long-term accelerating growth
• Airthings are disruptors in an immature building automation market
  • Moving from monitoring only to monitoring + control
  • Longer sales cycles in B2B, typically 1 year from first customer meeting until larger orders

Significant scale benefits from data

• An exponential amount of collected data combined with cloud analytics provides unique customer insights
• "All" customers have challenges with their indoor environment during a year.
  • Homes, classrooms, offices
  • Radon, air quality, temperature, humidity, or energy waste
• The data enables us to develop new products and solutions that address specific customer problems

Data to empower insights

Billions of data samples collected

Summary

• Investing in continued strong growth in revenue and ARR
• Building a global brand
• Making air quality monitors as common as smoke detectors
• Making buildings smarter, healthier, and more energy efficient

Long-term growth model beyond 2024

Continued strong sales momentum

Increasing ARR share of revenue

Long-term EBITDA margin target >25%

Q & A