Airthings — Investor Presentation 2021

Jul 29, 2021

2Q21 Presentation

July 29, 2021

Oyvind Birkenes, CEO Erik Lundby, CFO Pål Berntsen, VP&GM Airthings for Business

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 2Q results released on July 29th, 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

3

Empower the world to breathe better

High-growth international business

REVENUE SPLIT (YTD)

~130 employees from 30+ nations

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

The most advanced air quality tech.

A comprehensive, all-in-one answer to indoor air quality monitoring.

From the #1 air quality monitoring producer in the world.

Strong 2Q with 80% YoY growth

• 2Q21 Sales revenue of NOK68m, up 80% YoY
• 2Q21 ARR of NOK16.5m, up 178% YoY
• 2Q21 Gross profit margin of 67.1%
• 3Q21 Revenue guidance of NOK80m – 90m
• 3Q21 ARR guidance of NOK18m – 23m

Main events during the second quarter

Update by Segment

For everyone with a home

For commercial & public buildings

Business

For home inspectors & radon professionals

Pro

Consumer Segment 2Q Update

• Revenue of NOK49.8m up 69% YoY
• 66.7% Gross Profit Margin
• CVS Health to carry Wave Mini in more than 3000 locations across US
• Started shipping View Plus to consumers and expect strong sales as we expand product availability into key channels and new markets in 3Q
• Started shipping products to distributors in selected markets in Asia Pacific

• Largest pharmacy retail chain in the US with ~10,000 locations across all 50 states
• Rolling out Wave Mini to 3 016 locations
• Product on display in highly visible prominent space near Pharmacy counter
• Focus on air quality monitoring to enable consumers to take preventive steps toward minimizing conditions like asthma and allergies

Business Segment 2Q Update

• Sales revenue of NOK 9.7m and 284% YoY growth
• 62.9% Gross Profit Margin
• View Plus started to ship in 2Q, while most of the backlog and new opportunities will ship in 3Q
• Signed partner contract with Carrier who is a world leader within the HVAC industry
• We have built a large partner network and about 75% of revenue is now coming from partners
• Countries driving most growth in 2Q are UK, Netherlands, Singapore, Italy and the US
• Low churn with <1% in 2Q21

Airthings for Business: Strategic Agreement with Carrier

• Carrier Corporation (NYSE: CARR) is a leading global provider within the HVAC and Fire & Safety industries
• More than 53,000 employees serving customers in more than 180 countries
• Revenue of \$17.5 billion in 2020
• Signed strategic agreement with Airthings in July

Airthings for Business: Strategic Agreement with Carrier

The Airthings – Carrier cooperation will start with Abound (building optimization) & Edwards (Fire and Safety).

• Initial rollout in the US and Canada. Europe as next phase
• Activating Carrier Fire & Safety channels to market, targeting over 500 sales offices in the U.S
• Training of their sales teams has just begun and will continue through 3Q and 4Q
• Co-marketing activities has just started
• We have started several pilot installations in office spaces, schools, and a professional sports stadium
• We have developed a Partner Portal in the Airthings Dashboard to enable Carrier's sales teams

Pro Segment 2Q Update

• Sales revenue of NOK8.5m, and 45% YoY growth
• 74.8% Gross Profit Margin
• Despite a challenging US Home Inspector market for 2Q, we are growing our market share
• We are now a leading provider of certified continuous radon monitors to the main radon professional associations in the US; AARST/NRPP and NRSB

6	Book		9:00	C	491		tost
	MEASUREMENT SUMMARY		�	Device-A Device 1 - 123734-1		D F	Tamperature ("F
				Piemmare 2.2.0	UPDATE AVAILABLE
	ర్యా RADON LEVEL			LATEST MEASUREMENT	6 min aga
0.0 pCi/L MINIMUM	0.3 pCVL AVERAGE	1.0 p MAXI	15 Balm'		Rados GC	12.00	10. Sep 12.00
	0 HUMIDITY		0 20%	இ 22°	101.58 lut	D %rH	Municity Che
495%HH	52.714 %d8	59 A	LATEST DATASETS (2)
Mibelindulud	NVERAGE	MAXI		Test-new-hampshire 2	Vital
	TEMPERATURE			Cuttomar: B.Starthip
70.88 *F	72.871 *F	74.84		Submit Comments		Sep 12:00	10. Bep 12.00
Mineyid	NVERAGE	MAXIN				B kPa	Annoupheric Pressure (APA)
	ATMOSPHERIC PRESSURE		Unnamed 1
				Submit Comments
83,448 KPa SESIMULA	83.777 kPa NVERAGE	84.034 MAX
	Tampering events occurred as followed			START TEST A		3	12:00 10. Sep 52.00

Annual Recurring Revenue (ARR)

• End of 2Q21 ARR of NOK16.5m, up 178% YoY
• Delayed roll-out of Airtight technology is affecting 2Q ARR vs our plan. We expect ARR growth to increase further in 2H, but we reduce the ARR guided window for 2021 by 5m to 27m – 35m
• >80% gross profits from ARR

Financials

Erik Lundby, CFO

2Q Key figures

Sales revenue of NOK68.0m, up 80% YoY

• Strong growth across all segments

Sales gross margin at 67.1%

• Postponed Amazon order from 1Q came in 2Q as presented in last update
• Higher share of high-margin service revenue
• Product mix
• YTD GPM of 65% as planned

EBIT of NOK-20.7m

• Increased personnel expenses in accordance with expansion plan
• Campaigns Amazon Deal of the Day
• Office expansion
• EBIT is improving as planned

	Unaudited	Unaudited	Unaudited	Unaudited
Consolidated income statement (NOKm)	2Q21	2Q20	YTD 2021	YTD 2020
Sales revenue	68.0	37.9	125.5	88.3
Other revenue	0.2	0.3	0.2	0.6
Total revenue	68.2	38.2	125.7	88.9
Cost of sales	22.4	12.9	44.5	28.0
Gross profit	45.8	25.2	81.2	60.9
Sales gross margin	67.1%	65.9%	64.5%	68.3%
Payroll expenses	31.2	20.6	59.6	39.8
Other operating expenses	32.6	14.9	70.3	42.2
EBITDA	-18.0	-10.3	-48.6	-21.2
Depreciation and amortization	2.7	0.5	5.3	1.0
Operating profit / EBIT	-20.7	-10.8	-53.9	-22.2
Financial income	1.4	0.1	0.4	3.5
Financial expenses		0.2	0.0	0.5
Financial income / expenses - net	1.4	-0.2	0.3	3.0
Profit (loss) before tax	-19.4	-11.0	-53.6	-19.2
Income tax	-0.1	0.0	-0.1	0.0
Net profit (loss)	-19.3	-11.0	-53.5	-19.2
Earnings per share (NOK)*
Basic earnings per share	-0.11	-0.09	-0.31	-0.16
Diluted earnings per share	-0.11	-0.09	-0.31	-0.16

*EPS is calculated using post-split average shares outstanding for the period. Split of 200 was completed October 2020.

Balance sheet

Change in assets

• Long-term receivables decrease by NOK2.9m in 2Q (NOK5.5m in 1H) due to share price reduction effect on employer's tax related to employee option program
• Inventory increase by NOK7.5m during 2Q (NOK14.0m in 1H) due to component price increase and higher volumes to secure supply
• Accounts receivable is high due to high amount of closed deals in June

Change in liabilities

• Long-term provisions reduction linked to employee option program
• Deferred tax liability of NOK2.8m come in as result of completed Purchase Price Allocation related to acquisition of Airtight
• Other current liabilities change mainly due to View Plus pre-orders and subscription revenue

	Unaudited	Restated*
Consolidated balance sheet (NOKm)	30.06.2021	31.12.2020
Assets
Research & development	13.9	14.7
Software and systems	5.4	5.2
Deferred tax asset	22.9	22.9
Goodwill	23.6	26.4
Tangible assets	6.5	5.1
Long-term receivables	7.7	13.0
Total non-current assets	80.0	87.3
Inventory	54.1	40.1
Accounts receivables	61.9	59.7
Other current receivables	23.4	17.4
Cash and cash equivalents	462.2	537.0
Total current assets	601.6	655.3
Total assets	681.6	741.6
Equity and liabilities
Share capital	1.7	1.7
Other equity	608.0	658.4
Total equity	609.7	660.1
Other provisions	7.0	12.3
Deferred tax liability	2.8	2.9
Total non-current liabilities	9.8	15.2
Accounts payable	23.8	23.8
Tax payable	0.1
Public duties payable	7.5	7.6
Interest bearing short-term debt		16.2
Other current liabilities	30.6	18.6
Total current liabilities	62.1	66.2
Total equity and liabilities	681.6	741.6

See note 5 in the 2Q21 report for further information. * Measurement period adjustments Airtight purchase price allocation.

Cash flow

Negative cash flow from operating activities

• Negative operating results of NOK-19.4m
• Increased working capital
  • Increased inventory due to elevated component prices and securing of supply
  • Accounts receivable increase due to large share of deals in June

Negative cash flow from investment activities

• Purchase production tooling of office equipment

Negative cash flow from financing activities

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

Summary and Outlook

Summary 1H21

• View Plus The worlds' most advanced air quality monitor has started shipping to consumers and businesses. Will drive growth in 2H
• Major roll-outs into Walmart stores and CVS pharmacies, significantly increasing our footprint in the US market
• Major strategic agreements with global leaders like Schneider and Carrier Corporation shows our strong position in the market, and will fuel future growth
• Expansion into Asia Pacific has started and is already driving growth
• Strong growth in brand awareness in US, Canada, and Europe

Outlook

• Strong 2Q21 and strong outlook for 3Q21 with midpoint of guiding range indicating 101% YoY growth
• ARR guidance window for 2021 is reduced by NOK 5m as service revenue from Airtight technology is delayed
• EBITDA margin (%) to improve in 2021 vs 2020
• On schedule to reach the 2024 goals!

Revenue and ARR guidance (NOKm )	3Q21	FY21
Revenue	80 – 90	315 – 345
Annual Recurring Revenue	18 – 23	27 – 35

Revenue of NOK1 000m+

2024 Goal

ARR of NOK200m+

Global leader in indoor air quality

3Q21 Update and Capital Markets Day

• Welcome to 3Q21 update and Capital Markets Day on October 28th
• Will update on results and growth strategy by segment

Other updates

• Audhild Andersen Randa has resigned from the Airthings board as she is starting as our COO from August 2nd. A new board member will be recruited.
• We have a Board resolution as of July 28th, 2021, that Airthings ASA will apply to move from Euronext Growth Oslo to the Oslo Stock Exchange's main list during first half of 2022

Breathe better. Live better.