Airthings — Investor Presentation 2021

Oct 28, 2021

3Q21 Presentation

October 28, 2021

Oyvind Birkenes, CEO Magnus Bekkelund, CFO

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 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.

PURPOSE

Empower the world to breathe better

3

High-growth international business

~131 employees from 30+ nations

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

Strong 3Q with 110% YoY growth

• 3Q21 Sales revenue of NOK88.5m, up 110% YoY
• 3Q21 ARR of NOK17.7m, up 141% YoY
• 3Q21 Gross profit margin of 67.6%
• 4Q21 Revenue guidance of NOK100m – 115m
• 4Q21 ARR guidance of NOK22m – 27m

There is risk in 4Q guidance window due to

3Q Achievements

contract with >250 schools in Quebec

Quarterly Highlights Quarterly Lowlights

Global shortage in semiconductor market affects growth in 3Q and 4Q. Impacting 2H revenue of about NOK 30m, and GPM of about 2-5% points

ARR is delayed

as our partners keep some inventory, and devices must be installed and activated for the subscription revenue to be billed. In addition we have pushed-out rollout of Airthings Balance

Update by Segment

For everyone with a home

For commercial & public buildings

Business

For home inspectors & radon professionals

Pro

Consumer Segment 3Q Update

• Revenue of NOK72.7m up 115% YoY
• 67.6% Gross Profit Margin
• Seasonal offering with Walmart in 1000 stores. Airthings Wave Mini part of Home Health safety event
• Expanding partnership with Home Depot. Airthings products available in up to 1300 stores across the US
• Continued expansion into new channels and countries across Europe, f.ex Bol.com in NL and BE, Currys in the UK and Datart in CZ and HU
• View Plus demand is high, but limited inventory due to supply constraints in semiconductor market

Business Segment 3Q Update

• Sales revenue of NOK 12.1m and 207% YoY growth
• 62.8% Gross Profit Margin
• Launched View Co2 for Business including 10 years of battery life
• Awarded 10-year contract by Quebec Government to supply Air Quality Monitoring in Schools
• We have built a large partner network and about 74% of revenue is coming from partners in 3Q
• Countries driving most growth in 3Q are UK, Norway, Sweden, Netherlands, Germany and the US

Pro Segment 3Q Update

• Sales revenue of NOK3.8m, and -16% YoY growth
• 82.2% Gross Profit Margin
• 3Q is a low-seasons for the Home Inspector market

÷.	Show monitor 2 test		9:00 山堂	Show monitor 2 test
MEASUREMENT SUMMARY			Device-A $\leftarrow$ Device 1 - 123734-1	٠F (P) enable
	SP RADON LEVEL		5 Firmware 2.2.0 UPDATE AVAILABLE LATEST MEASUREMENT 6 min ago
$0.0$ pCi/L MINIMUM	$0.3$ pCi/L AVERAGE	1.0 p MAXI	Redon 90 $15$ Ba/m 3	12:00 10. Sep 12.00
	n. HUMIDITY		$22^{\circ}$ (2) 101.58 Ear € 39%	B Humiday (There D %rH
49.5 %rH senensung	52.714 %rH AVERAGE	59.98 MAXIE	LATEST DATASETS (2) tritial - S Test-new-hampshire 2
	8 TEMPERATURE		Customer: B.Starship
70.88 °F	72.871 °F	74.84	Submit Convents	10. Sep 12:00 12.00 las.
MREBELINE	AVERAGE	MAXIN	Me	A Amouphenc Fressure (kFa) B kPa
	(2) ATMOSPHERIC PRESSURE		Unnamed 1
83,448 kPa MINIMUM	83.777 kPa AVERAGE	84.034 MAXIN	Submit Comments
	Tampering events occurred as followed		START TEST	12:00 10. Sep 52.00 ko

Annual Recurring Revenue (ARR)

• End of 3Q21 ARR of NOK17.7m, up 141% YoY
• ARR (billed ARR) is slightly lower than last guidance. The AfB devices must be installed and activated for the subscription revenue to be billed. As we mostly sell through partners that hold inventory, there is typically a 2–3-month delay from we sell-in to the partners, until subscription revenue is billed.
• Booked ARR (not billed) of more than NOK 5m at e/o 3Q
• >80% gross profits from ARR

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

Financials

Magnus Bekkelund, CFO

Income Statement

Sales revenue of NOK88.5m, up 110% YoY

• All-time high
• Strong growth especially in Consumer and AfB

Sales gross margin at 67.6%

• 5%-points above 3Q guidance
• Product mix

EBITDA of NOK 0.8m

• Holiday pay one-time effect every 3Q
• Marketing
• Office leases

EBIT of NOK -1.9m

• Depreciation of goodwill as a result of the acquisition of Airtight

(NOKm)	3Q21	3Q20	YTD 2021	YTD 2020	2020
Sales	88.5	42.2	213.9	130.8	214.5
Other revenue		0.3	0.2	0.9	1.2
Total revenue	88.5	42.5	214.2	131.8	215.7
Cost of sales	28.7	16.0	73.2	44.0	71.1
Gross profit	59.8	26.5	141.0	87.7	143.5
Sales Gross Margin	68%	62%	66%	66%	67%
Payroll expenses	29.6	17.7	89.2	57.6	85.6
Other operating expenses	29.4	18.8	99.7	61.2	108.2
EBITDA	0.8	-10.0	-47.9	-31.1	-49.3
Depreciation and amortization	2.6	1.3	7.9	2.3	4.8
Operating profit / EBIT	-1.9	-11.3	-55.8	-33.4	-54.0
Financial income / (expenses)	1.5	0.0	1.8	3.0	-4.7
Profit (loss) before tax	-0.4	-11.3	-54.0	-30.4	-58.8
Income tax	-0.1	0.0	-0.2	0.0	-19.0
Net profit (loss)	-0.3	-11.3	-53.8	-30.4	-39.8
Earnings per share (NOK)
Basic earnings per share	0.00	-0.09	-0.31	-0.25	-0.30
Diluted earnings per share	0.00	-0.09	-0.31	-0.25	-0.30

Balance Sheet

Change in assets

• Inventory increase due to component price increase and higher volumes to secure supply
• Accounts receivables increase due to large share of closed deals in September

Change in liabilities

• Long-term provisions decrease due to share price reduction effect on employer's tax related to employee option program
• Accounts payable up due to company growth
• Other current liabilities change mainly due to accrued subscription revenues , personnel-and accrued expenses.

(NOKm)	30.09.2021	31.12.2020
Assets
Research & development	13.5	14.7
Software and systems	5.5	5.2
Deferred tax asset	22.9	22.9
Goodwill	22.2	26.4
Tangible assets	6.6	5.1
Long-term receivables	9.6	13.0
Total non-current assets	80.4	87.3
Inventory	74.4	40.1
Accounts receivables	106.3	59.7
Other current receivables	28.5	17.4
Cash and cash equivalents	394.9	537.0
Total current assets	604.1	655.3
Total assets	684.5	741.6
Total equity	611.2	660.1
Other provisions	9.0	12.3
Deferred tax liability	2.7	2.9
Total non-current liabilities	11.7	15.2
Accounts payable	32.8	23.8
Public duties payable, Tax payable	4.8	7.6
Interest bearing debt		16.2
Other current liabilities	23.9	18.6
Total current liabilities	61.5	66.2
Total equity and liabilities	684.5	741.6

Cash Flow Statement

Negative cash flow from operating activities

• Increased working capital
• Increased inventory due to elevated component prices and securing of supply
• Increased accounts receivables due to large share of closed deals in September
• Other adjustments
• Payments of salary related accruals (holiday pay) and public duty taxes

Negative cash flow from investment activities

• Purchase production tooling of office equipment

Positive cash flow from financing activities

• Change in equity related to exercising of options related to employee option program

Summary and Outlook

Summary 3Q21

• Record sales revenue in 3Q21 with 110% YoY growth despite sales is limited by supply
• Strong Gross Profit Margin of 67.6% even with higher costs of components
• Further expansions in the Consumer segments to top retailers like Home Depot, Walmart, and Currys
• Airthings for Business continues with strong sequential QoQ growth
• Launched View CO2 for Business with 10-Year battery lifetime
• Positive EBITDA for 3Q21

Outlook

• 4Q21 is limited by supply. The effect is estimated to more than NOK 20m for the quarter
• Mid-point of 4Q21 guiding range will result in a full-year 2021 revenue growth of 50%
• EBITDA margin (%) to improve in 2021 vs 2020
• On schedule to reach the 2024 goals!

Revenue and ARR guidance (NOKm)	4Q21	indoor air quality for homes and businesses
Revenue	100 - 115
Annual Recurring Revenue	22 - 27

Capital Markets Update

• Welcome to Capital Markets Update today at 14:00 at Felix Conference Center, Oslo
• Also available on video: https://events.webcast.no/viewer-registration/wrlBnYMo/register