July 14, 2023 Oyvind Birkenes, CEO Jeremy Gerst, CFO

2Q23 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 2Q results released on July 14th, 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

Growth in second quarter

Sales revenue of USD 7.5M, up 9% YoY
14% growth in Consumer segment
Airthings for Business largely flat
Gross profit margin of 62%
Lower margins in Consumer offset by relatively robust margins in other segments
Up 6%-points from 1Q23, and up 4%-points from 2Q22
3Q23 revenue guidance of USD 9.0 – 12.0M

2Q Highlights

14% growth in Consumer Revenues, and overall GPM of 62%

Launch of Space Utilization reinforcing softwarecentric product focus

Strengthening of key channel relationship with rollout of Wave Radon across 800 Home Depot locations

Challenging investment climate and flat revenue development in Airthings for

Long-term megatrends fueling regulatory tailwinds expected to boost demand for IAQ monitoring

Expansion in the California school market with 5,000 devices sold under the CalSHAPE program

Business Seeing early effects of strategy refinement with OPEX reductions of ~10% both YoY¹ and QoQ

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 2Q Update

Revenue of USD 5.0M, up 14% YoY
Gross Profit Margin was 58% in 2Q, up ~9%-points from 1Q23
Continued but less intensive promotional activities
Heightened focus on own channel showing early results, with YTD growth of >70% on Airthings.com
Further deepening of relationships with key channel partners such as Home Depot and Amazon

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 28% in 2Q 2023 vs. 2Q 2022
Growth in device registrations continues to outstrip revenue growth, due primarily to promotional activity

Business Segment 2Q Update

Sales revenue of USD 2.0M, down 2% YoY
67% Gross Profit Margin
Larger share of subscription revenues
Positive signals despite challenging investment climate
Roll-out in selected California schools
Recent regulatory developments
Partnership with Rentokil Initial
Stronger pipeline

Devices in the field continuing to expand

Devices in the field grew by 54% in 2Q 2023 vs. 2Q 2022, and up 4% vs. 1Q 2023
Driver of underlying growth in ARR

Case study: California Schools

15 schools equipped with 5,000 Airthings devices across California
Roll-out falls under the California Schools Healthy Air, Plumbing and Efficiency program (CalSHAPE)
CalSHAPE was established by Assembly Bill 841 in 2020 and provides grants to supply classrooms with CO2 monitors

California case study a proof-point of broader regulatory tailwinds

Centers for Disease Control and Prevention (CDC) recently issued new Indoor Air Quality (IAQ) standards
American Society for Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) just announced draft standards for maintaining IAQ
Seven states, including California, require monitoring of IAQ in schools
Representing roughly 8.3 million students and ~300,000 classrooms
Energy Performance of Building Directive (EPBD) requires member states to establish minimum energy performance requirements for buildings
Indoor Air Quality Directive (2009/125/EC) establishes minimum requirements for energy efficiency and indoor air quality
Non-member states, such as UK and Norway, with own sets of requirements
With IAQ included in requirements to provide a safe working environment

Partnership with Rentokil Initial

Rentokil Initial is a global leader in commercial pest control and hygiene services, operating in over 90 countries
Partnership combines Rentokil Initial's expertise in hygiene and air purification services with Airthings's advance monitoring technology
Providing comprehensive and accurate indoor air quality data for businesses
Enabling strategic targeting of the root causes of poor air quality in schools, commercial real estate, and shopping malls

Space Utilization

New feature measuring occupancy and space usage

First-ever indoor air quality monitoring tool with occupancy detection
Increased energy efficiency and cost reductions in buildings from data-driven approach:
Identify underutilized areas and reallocate space
Reprogram HVAC systems to match room usage
Monitor occupancy and ventilation to optimize indoor air quality
Presence detected without use of cameras, protecting privacy

Pro Sales Revenue (USD'000)

Pro Segment 2Q Update

Sales revenue of USD 0.5M, representing an increase of 10% YoY
Challenging home inspector market, leading to slow sales in the segment
86% Gross Profit Margin down 1%-point from 1Q23

Annual Recurring Revenue (ARR)

ARR of USD 4.0M, up 25% YoY overall, and up 46% YoY for AfB
Largely flat from with prior quarter, with increases in the Airthings for Business segment compensating for declines in PRO
>80% gross profits from ARR
3Q23 ARR guidance of USD 4.1 – 4.4M, mainly driven by continued new sales in Airthings for Business

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

Financials Jeremy Gerst, CFO

Elevated but improving Inventory situation

USD 0.9M decline in overall Inventories over the course of 2Q
Modest decline in Average Days of Inventory from 422 to 399
These improvements reflect the active steps taken in terms of promotional activities and reductions in inbound supply
The continued elevated levels of Inventories, however, warrant further steps being taken over the course of 3Q

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

Income Statement

Sales revenue of USD 7.5M in 2Q23, up 9% YoY, and 2% YTD

Sales gross margin of 62%

• High margins in Airthings for Business and Pro offsetting somewhat reduced margins in Consumer

EBITDA of USD -2.7M

Reduced Payroll expenses and other operating expenses compared to 2Q22
Even when accounting for one-off expenses in 2Q22, Payroll and Other OPEX USD 0.7M lower

EBIT of USD -3.1M

• Depreciation of right-of-use assets for leases recognized under IFRS 16

(USD'000)	2Q23	2Q22	YTD 2023	YTD 2022
Total revenue	7 457	6 851	16 209	15 913
Cost of sales	2 830	2 872	6 717	6 606
Gross profit	4 627	3 979	9 492	9 307
Sales Gross Margin	62%	58%	59%	58%
Payroll expenses	4 261	4 999	8 433	9 431
Other operating expenses	3 100	4 363	6 999	8 692
EBITDA	-2 734	-5 383	-5 940	-8 816
Depreciation and amortization	375	381	762	756
Impairment	0	1 522	0	1 522
Operating profit / EBIT	-3 109	-7 285	-6 702	-11 094
Financial income / (expenses)	285	1 529	1 273	1 241
Profit (loss) before tax	-2 825	-5 756	-5 430	-9 853
Income tax	612	-1 306	1 136	-2 271
Net profit (loss)	-2 212	-4 451	-4 293	-7 582

Earnings per share (USD)
Basic earnings per share	-0.01	-0.03	-0.02	-0.04
Diluted earnings per share	-0.01	-0.03	-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

Significant portion of equity decline due to exchange rate between NOK and USD
Non -current interest -bearing liabilities due to loan from Innovation Norway
Trade and other payables

(USD'000)	30.06.2023	30.06.2022
Assets
Intangible assets	2 840	1 495
Goodwill	2 628	2 841
Property, plant and equipment	729	916
Right -of-use assets	2 740	3 488
Deferred tax assets	7 665	6 065
Other non -current assets	82	190
Total non -current assets	16 684	14 995
Inventories	16 168	16 413
Trade receivables	8 152	9 225
Other receivables	4 662	2 939
Cash and cash equivalents	17 380	23 170
Total current assets	46 363	51 746
Total assets	63 047	66 742
Total equity	49 326	53 350
Non -current interest -bearing liabilities	1 300	0
Non -current lease liabilities	2 156	2 874
Deferred tax liabilities	0	0
Non -current provisions	72	183
Total non -current liabilities	3 529	3 058
Lease liabilities	837	853
Trade and other payables	5 611	6 281
Contract liabilities	1 296	971
Income tax payable	32	9
Government grants	0	0
Provisions	2 416	2 222
Total current liabilities	10 153	10 334
Total equity and liabilities	65 558	66 742

Cash Flow Statement

Cash flow from operating activities USD 2.6M

• Operating losses more than offset by working capital improvements

Cash flow from investment activities of USD -0.3M

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

Cash flow from financing activities of USD 1.1M

• Loan from Innovation Norway

Net unrealized foreign exchange difference of USD -1.4M

Summary and outlook

Recall: Airthings' refined strategy, focused on three key pillars

Own the customer relationship and move towards a digital-first GTM model
Improve scalability and unit economics
Narrow geographic focus, and go deeper rather than broader
Product focus

Go-to-

market

strategy

Become a hardware-enabled software company, with a software-first mentality
Create awesome customer experiences and sell more to existing customers

Operating model

Transition to a more automated way of operating that properly enables growth
Focus on continuously reducing both variable and fixed costs

More details and progress to be shared in Airthings's Capital Market Update on October 26th

Summary

Revenue of USD 7.5M, ARR of USD 4.0M, and Gross Profit Margin of 62%
14% growth in the Consumer segment, with largely flat revenue development in the Airthings for Business segment
However, positive signals in the Airthings for Business segment in the form of regulatory momentum, new partnerships, and expansion into California educational market
Modest reduction of overall inventory levels improvement seen in Days of Inventory, alongside an increase in Cash
Progress achieved in terms of strategy refinement focused on honing the go-to-market approach, reinforcing a software-centric product focus and improving the operating model
46% YoY growth in ARR from Airthings for Business and >70% YTD growth on airthings.com

3Q23 Outlook

3Q23 revenue estimated at USD 9.0 12.0M
ARR expected to grow to USD 4.1 4.4M by the end of the third quarter

Guidance 3Q23

Revenue and ARR guidance (USD M)	3Q23
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