October 26, 2023 Oyvind Birkenes, CEO Jeremy Gerst, CFO

3Q23 Presentation

Disclaimer

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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 26th, 2023. 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.

Empower the world to breathe better

High-growth and expanding business

Slight uptick in third quarter

Sales revenue of USD 10.1M, largely flat YoY
Highest revenue quarter since 4Q2021 with significant growth on Airthings.com (100%)
Gross profit margin of 62%
Up 2%-points from 3Q22, and flat with 2Q23
Higher margins in Airthings for Business (65%)
4Q23 revenue guidance of USD 9.0 – 12.0M

3Q Highlights

USD 10.1M in revenue with improved GPM and ARR up 18%

100% YoY growth on airthings.com Significantly

strengthened value proposition of solution offered via Lindab partnership

Details of our revised strategy – "Airthings 3.0" – will be presented at today's Capital Market Update

Follow-up order from same global enterprise customer, verifying our solutions' value-proposition

EBITDA neutral in the quarter, showing traction in the right direction

Current macro environment remains characterized by uncertainty and delayed timelines

Update by Segment

Consumer "Your Air Coach"

For everyone with a home

Improve quality of living and health

Business "Breathing life into buildings"

For every office, school and public building

Improve health, productivity & energy efficiency

Pro

For home inspectors & radon professionals

Consumer Segment 3Q Update

Revenue of USD 6.4M, largely flat YoY
Gross Profit Margin was 59% in 2Q, up 1%-points from 2Q23
Continued promotional activities offset by increase share of revenues through own channel
Heightened focus on own channel showing continued signs of results
Growth of 100% YoY on Airthings.com
Improved sell-through at key channel and retail partners due to targeted marketing

Continued growth in Consumer device registrations

New devices are registered when linked to an Airthings app
Proxy for end-user demand of smart devices
Growth of 18% in 3Q 2023 vs. 3Q 2022
Growth in device registrations continues to outstrip revenue growth, due primarily to promotional activity

Business Segment 3Q Update

Sales revenue of USD 3.1M, down 4% YoY
65% Gross Profit Margin, up 5%-points from 3Q22
Larger share of subscription revenues
Business remains heavily effected by large deals causing some lumpiness on a quarter-to-quarter and year-on-year basis
USD 1.0M was shipped to a large enterprise customer in 3Q23 vs. USD 1.7M to the same customer in 3Q22
Controlling for this, there is strong underlying growth in the rest of the portfolio

Devices in the field continuing to expand

Devices in the field grew by 47% in 3Q 2023 vs. 3Q 2022, and up 9% vs. 2Q 2023
Driver of underlying growth in ARR

Follow-up order with global enterprise customer

Secured additional order from the same global enterprise customer
Hardware revenues of USD 2.4M, building on the USD 3.2M in hardware revenues from the customer's original order in 2022
Verification of the value-proposition Airthings is delivering to its end-users

Strengthening partnership with Lindab

Unveiled next-gen building solution at PropTech Summit 2023
Strengthens the ongoing partnership by incorporating control of cooling and heating, in addition to ventilation
Represents a significant opportunity to maximize energy efficiency in both old and new buildings

Pro Segment 3Q Update

Sales revenue of USD 0.6M, representing an increase of 27% YoY
79% Gross Profit Margin down 7%-point from 2Q23, due to more hardware sales in the quarter

Annual Recurring Revenue (ARR)

ARR of USD 4.1M, up 18% YoY overall, and up 25% YoY for AfB
>80% gross profits from ARR
4Q23 ARR guidance of USD 4.1 – 4.4M, mainly driven by continued new sales in Airthings for Business

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 Jeremy Gerst, CFO

Inventories - continued modest improvement

USD 0.5M decline in overall Inventories over the course of 3Q
Very modest decline in Average Days of Inventory from 399 to 392
Reflect active steps taken in terms of promotional activities and continuing to reduce in inbound supply
The continued elevated levels of Inventories, however, warrant additional steps being taken for the foreseeable future

Note: Days of Inventory calculation – Inventories / (4 quarter rolling average COGS) * 90 days in quarter

Income Statement

Sales revenue of USD 10.1M in 3Q23, largely flat YoY, and up 1% YTD

Sales gross margin of 62%

• In-line with prior quarter and up 2%-points from 3Q22

EBITDA of USD 0.1M

• Reduced Payroll expenses compared to 3Q22

EBIT of USD -0.3M

Depreciation of right-of-use assets for leases recognized under IFRS 16
Amortization of internally generated intangible assets

(USD'000)	3Q23	3Q22	YTD 2023	YTD 2022
Total revenue	10 082	10 052	26 291	25 965
Cost of sales	3 824	3 996	10 541	10 602
Gross profit	6 258	6 056	15 749	15 362
Sales Gross Margin	62%	60%	60%	59%
Employee benefit expenses	2 745	2 885	11 178	12 316
Other operating expenses	3 440	3 385	10 439	12 077
EBITDA	73	-214	-5 868	-9 031
Depreciation and amortization	390	284	1 152	1 041
Impairment	0	0	0	1 522
Operating profit / EBIT	-318	-498	-7 020	-11 593
Financial income / (expenses)	-237	936	1 036	2 177
Profit (loss) before tax	-555	438	-5 984	-9 416
Income tax	-111	172	-1 247	-2 100
Net profit (loss)	-444	266	-4 737	-7 316

Earnings per share (USD)
Basic earnings per share	-0.00	0.00	-0.02	-0.04
Diluted earnings per share	-0.00	0.00	-0.02	-0.04

Balance Sheet

Change in assets

Deferred tax asset
Inventories
Trade receivables
Cash due to profitability, working capital, and exchange rates

Change in liabilities

Non-current interest-bearing liabilities due to loan from Innovation Norway
Trade and other payables

(USD'000)	30.09.2023	30.09.2022
Assets
Goodwill	2 665	2 607
Intangible assets	3 290	1 765
Deferred tax assets	7 893	5 479
Property, plant and equipment	686	843
Right-of-use assets	2 600	3 040
Other non-current assets	115	223
Total non-current assets	17 249	13 957
Inventories	15 678	15 518
Trade receivables	9 095	10 581
Other receivables	4 433	2 314
Cash and cash equivalents	15 473	17 014
Total current assets	44 678	45 426
Total assets	61 927	59 383
Total equity	49 603	48 979
Non-current interest-bearing liabilities	1 318	0
Non-current lease liabilities	2 009	2 489
Non-current provisions	108	218
Total non-current liabilities	3 436	2 707
Current lease liabilities	848	782
Trade and other payables	5 242	4 780
Contract liabilities	1 292	934
Income tax payable	30	8
Current provisions	1 476	1 195
Total current liabilities	8 888	7 697
Total equity and liabilities	61 927	59 383

Cash flow from operating activities USD -1.3M

• Higher revenues in 3Q driving up trade receivables and more than offsetting modest improvement in Inventories

Cash flow from investment activities of USD -0.5M

• Internally generated intangible assets, purchase of software, production tooling and office equipment

Cash flow from financing activities of USD -0.2M

Net unrealized foreign exchange difference of USD 0.1M

Summary and outlook

Recall: Airthings' refined strategy – "Airthings 3.0" Focused on three key pillars

More details and progress to be shared in today's Capital Market Update

Summary

Revenue of USD 10.1M, ARR of USD 4.1M, and Gross Profit Margin of 62%
Largely flat in the Consumer segment, but with 100% grow in sales on airthings.com showing continued momentum on digital channels focus
Down 4% in the Airthings for Business segment, although strength seen in underlying business when controlling for effect of large orders
Continued improvement in overall inventory levels as well as Days of Inventory, albeit modest
Early signs of traction stemming from strategy refinement with more details to be shared in the Capital Market Update
25% YoY growth in ARR from Airthings for Business, and 18% overall

4Q23 Outlook

4Q23 revenue estimated at USD 9.0 12.0M
ARR expected to grow to USD 4.1 4.4M by the end of the fourth quarter

Guidance 4Q23

Revenue and ARR guidance (USD M)	4Q23
Revenue	9.0 – 12.0
Annual Recurring Revenue	4.1 – 4.4

Long-term outlook supported by lasting factors and megatrends

About 55 million people have asthma in the US and Europe combined. Particle pollution is found to be a major cause of asthma
Rapid increase in instances of wildfires in the US and globally showing an increase in the risk of both cardiovascular- and respiratory-related effects
Increasing IoT adoption is fueling growth of smart home market going forward

Business Segment

~4/5 of today's building will still exist in 2050 meaning we need to find ways to improve their sustainability
40% of global energy consumption comes from commercial buildings representing an enormous opportunity to save costs and CO2
Most existing buildings don't have an automated system for HVAC control
6 out of 10 students are exposed to CO2 levels higher than the recommended threshold of 1,000 ppm
Regulation and Legislation for building energy performance and health of workers
IoT and digitalization for more efficient facility management
ESG and sustainability

Breathe better. Live better.

Q&A