Elliptic Laboratories ASA — Earnings Release 2022

May 25, 2022

Q1 2022

CEO Laila Danielsen CFO & IR Lars Holmøy

Results presentation | May 25, 2022

Sensors touch every aspect of life and drive the digital transformation

Our AI Virtual Smart Sensor PlatformTM makes devices intelligent

Billions of devices use hardware sensor components

4

We are adding more capabilities while reducing cost, risk and environmental footprint

Replacing hardware sensor components

• AI Virtual Smart Sensor Platform™ can replace infrared, time-of-flight and radar sensors for presence and proximity detection
  • − Reducing cost
  • − Additional features such as position detection, simplified connectivity and interaction between devices
  • − As a non-optical, edge-solution safeguarding user privacy
• Our software solution streamlines hardware supply chain and eliminates sourcing risks

Increased future revenue visibility expanding into the Laptop market

Year-over-year revenue growth

NOK million, LTM

• 83% Revenue growth from contracts with customers year-over-year (LTM)
  • − Mainly income from Smartphone vertical
  • − First quarters are seasonally low
• 41% Total revenue and other operating income growth year-over-year (LTM)
• Positive cash flow in Q1 2022
• Laptop license revenue expected to be recognized in the second half of 2022

6 1) Other operating income mainly reflects research grants, Innovation Norway support, etc.

Multiple opportunities for expansion

Launched with Lenovo and signed agreements for future expansion on +20 laptop models

Continuing commercial scale from a strong foundation

*All numbers are cumulative

On path to become the standard in the Laptop market

Global desktop, notebook and workstation shipments

Million units shipped1

Contract for more than 20 Lenovo models incl. top seller ThinkPad T14 Market share Q1 20222

Partnerships with CPU majors grants access to the complete market

~100% accessible

through partnerships with three CPU industry majors

9 1) Source: Canalys PC Analysis (sell-in shipments), January 2022 2) Source: IDC Quarterly Personal Computing Device Tracker, April 11, 2022

Experiencing continued strong demand and growth in Smartphones

• Leading market position with proven performance allows for rapid adoption without Proof-of-Concept testing
• Market expansion through continued partnerships with Qualcomm & MediaTek

Announced 14 smartphone launches YTD 2022 AI Virtual Proximity SensorTM

The market is dominated by single-purpose hardware sensor

• Microphone and speaker
  • − In most devices for standard audio and voice control
• Infrared Proximity Sensor:
  • − Mature and incumbent technology in most smartphones
  • − Enabling screen lock when marking calls
• Time-of-Flight:
  • − Non-standardized and non-incumbent
  • − In PCs, laptops, tablets, smart TVs, and IoT products
• Radar
  • − Detects relative position and motion

Hardware sensor components Hardware sensors technology cost

Financial review

Funded for continued expansion across multiple verticals

CFO Lars Holmøy

Continued strong growth trajectory

Revenue from contracts with customers last twelve months

NOK million, LTM

• 83% year-over-year growth in revenues from contracts with customers last twelve months
  • − Primarily from the smartphones vertical
  • − Continued strong demand for AI Virtual Smart Sensors
  • − Revenues from contracts with customers year-overyear from NOK 1.7m to NOK 5.5m in Q1 2022
• Total revenue and other operating income last twelve months of NOK 64.0m in Q1 2022, a growth of 41% year-over-year
• Other operating income reflecting grants and support is reduced 58% year-over-year

13 1) Other operating income mainly reflects research grants, Innovation Norway support, etc.

Smartphones revenue expected to be supported by revenue from laptops in second half 2022

Quarterly revenue from contracts with customers NOK million

• Last two years revenue from contracts with customers subject to seasonality
  • − Majority of revenue from smartphones
• Laptop license revenue expected to start second half 2022
  • − Per unit revenue license from Laptop agreements

Maintaining a robust capital discipline through our growth journey

Condensed Profit & Loss statement

NOK million

	Q1'22	Q1'21	%YoY	Q4'21
Revenues from contracts with customers	5.5	1.7	221 %	34.7
Other operating income	0.0	2.8	-100 %	0.0
Total revenue and other operating income	5.5	4.5	22 %	34.7
Employee benefits expenses	13.9	10.3	34 %	18.81)
Other operating expenses	5.1	2.7	88 %	6.1
EBITDA	-13.4	-8.5		9.8
Depreciation and amortisation	2.9	2.1		2.1
Operating profit (EBIT)	-16.3	-10.6		7.7
Net financial income/expenses	-1.2	-0.5		-0.9
Profit/loss before tax	-17.5	-11.0		6.8
Income tax expense	3.2	2.5		-2.5
Profit/loss	-14.3	-8.6		4.3

1) including NOK ~6.5 m in true up effects connected to the settlement of share-based payment agreement and consultant fees related to uplifting to Oslo Børs

• Revenue from contracts with customers growth of 221% YoY
  • − Mainly from smartphones market
  • − Q1'22 to Q4'21 decrease due to seasonality
• No other operating income in Q1 2022
  • − Historically research grants, Innovation Norway support, etc.
• Employee benefit expenses up NOK 3.6 million YoY
  • − Net FTE increase of 12 (+25%) year-over-year
• Majority of year-over-year increase in other operating expenses related to investments in supporting systems, sales & marketing and professional services

Positive cash flow in the first quarter 2022

• Strong liquidity supported by 2021 equity raise
• Positive cash flow in Q1 2022
• Cash flow from operating activities positively affected by realization of NOK 12.4 million receivables
• Cash flow from investing activities mainly reflecting capitalized software development
• Cash flow from financing activities includes repayment of lease liabilities, repayment of short-term liabilities and paid interest

Q1 2022 cash flow

Maintaining a robust balance sheet

Balance sheet

NOK million

• Strong and increased cash position of NOK 219 million at the end of Q1 2022
• Working capital reduced NOK 18 million (7%)
• Equity ratio of 93%
• Interest bearing debt reflecting loans from Innovasjon Norge1

Q&A

2023 revenue target

EBITDA

Building position in the IoT market

Laptops our next key growth vertical

Smartphone expansion

We will be back shortly for Q&A session

2023 revenue target

Revenue 500 NOK million

EBITDA

Building position in the IoT market

Laptops our next key growth vertical

>50% Continued Smartphone expansion

19

Appendix

Wide-ranging opportunities across significant markets

Enterprise/annual license fee

Reported financials

Profit and loss

	Q1 2022	Q1 2021	2021
(Amounts in 000 NOK)	(Unaudited)	(Unaudited)	(Audited)
Revenues from contracts with customers	5 516	1 719	54 598
Other operating income	—	2 813	8 438
Total revenue and other operating income	5 516	4 532	63 036
Employee benefits expenses	-13 898	-10 333	-50 807
Other operating expenses	-5 059	-2 697	-15 058
EBITDA	-13 441	-8 498	-2 829
Depreciation and amortisation	-2 868	-2 058	-8 311
Operating expenses	-21 825	-15 088	-74 176
Operating profit	-16 309	-10 556	-11 140
Financial income	632	205	3 730
Financial expenses	-1 793	-669	-5 683
Net financial income/(expenses)	-1 161	-464	-1 953
Profit/(loss) before tax	-17 470	-11 020	-13 092
Income tax expense	3 176	2 467	1 878
Profit/(loss)	-14 294	-8 553	-11 214

Reported financials

Cash flow

(Amounts in 000 NOK) (Unaudited) (Unaudited) Cash flow from operating activities Profit/(loss) before tax -17 470 -11 020 Adjustment for: Taxes paid in the period -2 - 7 Depreciation 2 868 2 058 Share -based payments 2 914 956 Items classified as financing activities 140 178 Change in current trade receivable 12 427 8 251 Change in trade payables 179 314 Change in other accruals 7 395 -491 Net cash flows from operating activities 8 452 239 Cash flow from investing activities Capitalized development costs -5 577 -2 847 -17 610 Net cash flows from investing activities -5 577 -2 847 Cash flow from financing activities Payments of lease liabilities, classified as financing activities -558 -558 Repayments of current borrowings -1 000 -1 000 Proceeds from issuing shares 0 0 Payments for share issue costs 0 0 Interests paid, classified as financing activities -140 -178 Net cash flows from financing activities -1 698 -1 736 Net Change in Cash and Cash Equivalents 1 177 -4 344 Cash and cash equivalents at the beginning of the period 218 151 99 724 Effect of foreign currency rate changes on cash and cash equivalents -32 - 2 Cash and cash equivalents at the end of the period 219 296 95 379	Q1 2022	Q1 2021	2021
			(Audited)
			-13 092
			-12
			8 311
			10 349
			653
			-28 599
			2 040
			9 528
			-10 822
			-17 610
			-2 232
			-4 000
			162 218
			-8 533
			-653
			146 800
			118 368
			99 724
			59
			218 151

23 For more information and notes, please see Elliptic Labs Q1 2022 report

Reported financials

Balance sheet

	31/03/22	31/12/21		31/03/22	31/12/21
(Amounts in 000 NOK)	(Unaudited)	(Audited)	(Amounts in 000 NOK)	(Unaudited)	(Audited)
Non-current assets			Equity and liabilities
Deferred tax assets	65 710	62 534	Share capital	1 038	1 038
Intangible assets	38 899	36 564	Other equity	330 319	341 731
Right of use assets	2 232	2 790	Total equity	331 358	342 769
Other non-current receivables	4 765	4 517
Total non-current assets	111 606	106 406	Non-current lease liabilities	530	530
			Non-current borrowings	9 000	10 000
Current assets			Total non-current liabilities	9 530	10 530
Current trade receivables	16 598	29 025
Other current receivables	9 500	17 773	Current borrowings	4 000	4 000
Cash and cash equivalents	219 296	218 151	Trade and other current payables	3 208	3 029
Total current assets	245 394	264 949	Current tax liabilities	—	—
			Current lease liabilities	2 061	2 611
Total assets	357 000	371 356	Other current liabilities	6 843	8 416

Assets Equity &

liabilities

		Total equity and liabilities	357 000	371 356
		Total current liabilities	16 112	18 056
		Current lease liabilities	2 061	2 611
		Non-current borrowings	9 000	10 000
31/03/22	31/12/21		31/03/22	31/12/21

Shareholder information

Top 20 shareholders as of 20. May 2022

		Number of shares	% of total shares
1	PASSESTA AS	12 280 480	11,8%
2	MP PENSJON PK	8 937 299	8,6%
3	ALDEN AS	7 403 330	7,1%
4	HORNE	5 028 350	4,8%
5	J.P. Morgan SE	4 969 370	4,8%
6	DANIELSEN	4 624 150	4,5%
7	VINTERSTUA AS	4 467 677	4,3%
8	LARNE OVERSEAS LTD	2 820 000	2,7%
9	NORDNET LIVSFORSIKRING AS	2 603 912	2,5%
10	GHIBLI AS	2 050 000	2,0%
11	NUNATAK AS	2 044 920	2,0%
12	VERDIPAPIRFONDET DNB SMB	1 809 345	1,7%
13	FABRES SCALER	1 600 000	1,5%
14	BRYHNI.COM AS	1 566 241	1,5%
15	VERDIPAPIRFONDET PARETO INVESTMENT	1 556 000	1,5%
16	Danske Invest Norge Vekst	1 512 700	1,5%
17	Nordnet Bank AB	1 490 064	1,4%
18	CIPRIANO AS	1 453 700	1,4%
19	INVEN2 AS	1 441 670	1,4%
20	Danske Bank A/S	1 333 330	1,3%
	Top 20 shareholders	70 992 538	68,4%
	Other	32 849 342	31,6%
25	Total	103 841 880	100.0 %

Shares and options owned by BoD, mgmt, and employees as of 20. May 2022(fully diluted)

	Number of shares	Percent of fully diluted shares
Shares owned by Board of Directors	19 701 810	18,0%
Shares owned by Mgmt. and Employees	4 916 240	4,5%
Allocated Options to Employees and management per 22.05 in shares	5 727 861	5,2%
Other shareholders	79 223 830	72,3%
Total	109 569 741	100%

Disclaimer - Important information

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 Elliptic Laboratories AS (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 Q4 2021 financial reporting on March 10, 2022. Information contained herein will not be updated.

Sensors touch every aspect of life and drive the digital transformation

Our vision is to build the leading software platform for all sensors, making every device smarter, more human- and environmentally-friendly

Our platform reduces cost, risk and environmental footprint NOK 500m revenue target in 2023

AI Virtual Smart Sensor PlatformTM

Laila Danielsen, CEO laila@ellipticlabs.com Lars Holmøy, CFO & Investor Relations lars.holmoy@ellipticlabs.com