Airthings — Investor Presentation 2021

Apr 29, 2021

1Q21 Presentation

April 29, 2021

Oyvind Birkenes, CEO Erik Lundby, CFO Erlend Bolle, co-founder and CPO

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 1Q results released on April 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

Empower the world to breathe better

High-growth international business

~120 employees from 30+ nations

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

1Q in line with guidance - strong outlook for 2Q

• 1Q21 Sales revenue of NOK 57.5m, up 14% YoY
• 1Q21 ARR of NOK 14.2m, up 126% YoY
• 1Q21 Gross profit margin of 62%
• 2Q21 Revenue guidance of NOK 60m – 70m
• 2Q21 ARR guidance of NOK 16m – 20m

Quarterly Fluctuations in Revenue and Gross Profits

• The Consumer revenue is driven by sell-in to our channel partners, while the end demand is set by sell-through
• Consumer revenue will have quarterly fluctuations depending on inventory levels at the channel partners
• We look at end-demand (sell-through) with product registrations, and average revenue over time to measure the growth of the Consumer business
• Gross profits is dependent on the different retailers and ecommerce partners as well as the product mix we are shipping in any given quarter
• 1Q21 has lower ship-in revenue, while strong sell-through as Amazon has reduced their target of inventory-days

Revenue and Gross Profit (NOK 1 000)

Main events during the first quarter

View Plus

• - Addresses massive global issues
• 54m Americans live in areas that experience unhealthy spikes in particulate matter air pollution 1)
• 50m Americans suffer from seasonal allergies 2)
• 21 000 Americans die from radon induced lung cancer per year according to EPA

2) AAFA.org

Our Best Performing Campaign To Date

• Over 4m views of View Plus videos on YouTube & Facebook during launch
• Magnus Carlsen first to use the View Plus – Air quality streamed live during Champions Chess Tour coverage worldwide
• Big increase in web traffic to airthings.com during launch

Already very strong demand in the market

• Thousands of pre-orders and bookings from consumers and partners
• High interest from retailers and e-commerce channels to roll-out View Plus
• Will drive significant revenue from 3Q

"The View Plus is a gamechanger in the market – a comprehensive indoor air quality monitor that every commercial building owner can use to track key pollutants in the air."

Brook Potter, Director of Product Management, Schneider Electric

"We see a big increase in demand for products related to climate and air quality. Now with the View Plus, Airthings have a unique offering to the market that we are very excited about. We expect to sell a lot of these in the months and years ahead.."

Christian Nævdal, Sales Director SDA, Elkjøp Nordic

Update by Segment

For everyone with a home

Consumer

For commercial & public buildings

Business

For home inspectors & radon professionals

Pro

Consumer Segment 1Q Update

• Revenue of NOK39.7m
• Strong sell-through from retailers and distributors while the quarterly sell-in revenue was soft

• 150% YoY growth of sell-through of smart products

• Large Amazon sell-in order moved from 1Q21 to 2Q21
• Seeing significant growth in DACH region
• Great momentum following View Plus launch with high number of pre-orders and bookings

• Rolling out to Walmart

• Worlds largest retailer with more than 4 000 stores in the US

• Rolling out Wave Mini to 789 stores
• In time for their Spring Allergy Season
• Focus on Air Quality, Mold, and Pollen

Business Segment 1Q Update

• Sales revenue of NOK9.5m and 516% YoY growth
• Strong growth & outlook for both revenue & ARR
• We have built a large partner network and 71% of revenue is now coming from partners
• Partners like Infogrid, Schneider, Maddock, and Evotech are driving significant growth
• Number of deals and deal size is increasing rapidly
• Low churn with <1% in 1Q21
• Great interest and bookings of View Plus. Backlog starting to ship June and July

Airthings for Business: Examples of Success in Commercial Buildings

• One of the largest commercial real estate companies in the world has installed Airthings in over 20 commercial buildings in downtown Chicago.

Will roll out to more buildings across the US.

• CBRE Norway continues to roll out Airthings for Business and are now in 33 commercial buildings in Norway.

Will continue to build on existing solution and add sensors to new buildings.

Airthings for Business: Success stories in Public Buildings

• East Porter School Corp in Indiana deployed Airthings for health and well-being of students and faculty at four schools.

Resulting in healthier indoor air, a more productive environment & over \$23k in energy savings.

• Airthings solution installed in 31 schools in Rotterdam ensuring a safe and comfortable indoor environment for children and teachers. The sensors also made the schools compliant with new regulations requiring CO2 monitoring in schools in Netherlands.

Multiple new schools in the pipeline.

Pro Segment 1Q Update

• Sales revenue of NOK8.3m, and 45% YoY growth
• Strong US housing market driving high demand for home inspections
• New regulations coming that will require homes in all 50 states to test for radon during home inspections
• We have differentiated products that offer the best user experience, enabling home inspections to be much more efficient. This is creating a happy and loyal customer base

	MEASUREMENT SUMMARY		9:00 Device-A ÷	$m \approx 1$
				Device 1 - 123734-1	b °F	Owner
			5 Firmware 2.2.0	UPDATE AVAILABLE
	OF RADON LEVEL		LATEST MEASUREMENT	6 min ago
$0.0$ pCi/L	$0.3$ pCi/L	1.0 p
MINIMUM	AVERAGE	MAXI	$15$ Ba/m 3	Radon 90	12:00	10. Sep 12.00
	A HUMDITY		$22^{\circ}$ € 39%	(2) 101.58 Ear	D %rH	Humidity (Nd
			LATEST DATASETS (2)
49.5 %rH	52.714 %rH	59%		tritial -
MINIMUM	AVERAGE	MAXIE	S Test-new-hampshire 2
	TEMPERATURE		Customer: B.Starship
			School Comments		12:00 tes	10. Sec 12.00
70.88 °F MREBELINE	72.871 年 AVERAGE	74.84 MAXIN
			Unnamed 1	Me	B kPa	A Amorphanic Fressure (kP)
	(2) ATMOSPHERIC PRESSURE
			Submit Comments
83.448 kPa	83.777 kPa	84.034
MERCHAUSE	AVERAGE	MAXIN			12:00 Sep	10. Sep 52.00
	Tampering events occurred as followed		START TEST

Annual Recurring Revenue (ARR)

• Airthings for Business is driving the main ARRgrowth while ARR from PRO is growing steadily at a slower pace
• Strong sell-in to AfB partners in 1Q21 will drive more ARR from second quarter

• 80% gross profits from ARR

Released Sustainability Report

• At Airthings, our employees and Board are fully committed and engaged to the big positive impact we can have on the planet, on people, and for other businesses
• We released our first Sustainability Report and submitted to UN Global Compact
• We reviewed our progress in 2020, and set big ambitions to become a climate positive company by 2026 while we empower people around the globe to breathe healthier air
• We now have clearly defined ESG KPIs and will hold ourselves accountable

Financials

Erik Lundby, CFO

1Q Key figures

Sales revenue of NOK57.5m, up 14% YoY

• AfB and Pro are main drivers

Gross margin at 62%

• Postponed Amazon order
• Higher share of AfB product sales with lower margin

EBIT of NOK-33.4m

• Increased personnel expenses in accordance with expansion plan
• Marketing costs in conjunction View Plus launch
• Amazon Deal of the Day

	Unaudited	Unaudited
Consolidated income statement (NOK 1 000)	1Q21	1Q20
Sales	57 460	50 369
Other revenue	0	348
Total revenue	57 460	50 717
Cost of sales	22 104	15 072
Gross profit	35 356	35 645
Sales Gross Margin	62%	70%
Payroll expensees	28 355	19 244
Other operating expenses	37 638	27 242
EBITDA	-30 637	-10 841
Depreciation and amortization	2 723	576
Operating profit / EBIT	-33 360	-11 417
Financial income	585	3 527
Financial expenses	1 621	359
Financial income / expenses - net	-1 036	3 168
Profit (loss) before tax	-34 396	-8 249
Income tax	- 11	- 4
Net profit (loss)	-34 407	-8 253
Pre-split earnings per share (NOK)*
Basic earnings per share	-40.27	-14.35
Diluted earnings per share	-40.27	-14.35
Post-split earnings per share (NOK)**
Basic earnings per share	-0.20	-0.07
Diluted earnings per share	-0.20	-0.07
*EPS is calculated using pre-split average shares outstanding for the period. Split of 200 was
completed October 2020.

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

Negative cash flow from operating activities

• Negative operating results of NOK-34.4m slightly offset by reduction in working capital of NOK13.5m primarily due to seasonality

Negative cash flow from investment activities

• Purchase of office equipment and tooling in accordance with expansion plan and new product launch

Negative cash flow from financing activities

• Repayment of growth loans

Balance sheet

Change in non-current assets

• Tangible assets up mainly due to purchase of office equipment
• Long-term receivables reduction due to effect on employers' tax as a result of change in market value on employee options

Change in current assets

• Inventory increase due to securing volume in pressed semiconductor market, slightly offset by seasonality
• Accounts receivable change due to seasonality
• Other short-term receivables increase due to pre-payments of components

Change in liabilities

• Other provisions change due to employers' tax on options
• Growth loans repaid
• Other short-term debt change mainly due to View Plus pre-orders and subscription revenue

	Unaudited	Audited
Consolidated balance sheet (NOK 1 000)	31.03.2021	31.12.2020
Assets
Research & development	1 495	1 469
Software and systems	5 208	5 183
Deferred tax asset	22 933	22 933
Goodwill	34 475	36 427
Tangible assets	6 068	5 076
Long-term receivables	10 461	13 004
Total non-current assets	80 640	84 091
Inventory	46 549	40 095
Accounts receivables	40 417	59 730
Other short-term receivables	23 996	17 387
Cash and cash equivalents	497 962	537 048
Total current assets	608 924	654 261
Total assets	689 564	738 351
Equity and liabilities
Total paid-up equity	1 711	1 706
Other equity	625 420	658 120
Total equity	627 131	659 826
Interest bearing long-term debt
Other provisions	9 831	12 304
Total non-current liabilities	9 831	12 304
Accounts payable	24 449	23 788
Tax payable	37
Public duties payable	3 086	7 577
Interest bearing short-term debt		16 222
Other short-term debt	25 029	18 635
Total current liabilities	52 601	66 222
Total equity and liabilities	689 564	738 351

View Plus

Erlend Bolle, co-founder and CPO

Meet View Plus

Complete control over the air you breathe and the power to change it

At home At work

Customizable Display

Wi-Fi and truly wireless

A connected experience

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.

Summary and outlook

37

2024 Goal

Summary

• View Plus The worlds' most advanced air quality monitor launched and will be a new revenue generator from 3Q21
• Airthings for Business growing 516% YoY
• Rolling out to Walmart
• We are on our path to reach the 2024 goals

Revenue and ARR guidance (NOKm)	2Q21	FY21
Revenue	60 – 70	315 – 345
Annual Recurring Revenue	16 – 20	32 – 40

Revenue of NOK1 000m+

ARR of NOK200m+

Global leader in indoor air quality for homes and

Breathe better. Live better.