Huddly AS — Interim / Quarterly Report 2021

Nov 9, 2021

Q3 2021 Quarterly Report

Highlights Q3 2021

• Revenue at 87.9 MNOK, down 8 % compared to Q3 2020 • Growing demand for Huddly's solutions, total backlog of 87 • EBIT (adjusted) at 10.2 MNOK, compared to 25.4 MNOK in

• Huddly forecasts revenue to be in the range from 350 MNOK

• MNOK at end of Q3 2021, up 53% Q-o-Q
• Q3 2020
• to 370 MNOK in FY 2021
• supply chain
• • Huddly launched new AI software feature, Gallery View, Rooms

• Impacted by indirect and direct effects of global tightness in

which supports composite people feed in Microsoft Teams

Sales

• Q3 2021 total revenue at 87.9 MNOK, was down 8%

compared to Q3 2020 • Revenue was also impacted by the NOK strengthening 4% versus USD in Q3 2021 versus Q3 2020 • Impacted by global tightness in supply chain of 87 MNOK at end of Q3 2021, up 53% Q-o-Q requested for shipment in Q3 2021 Q4 2021

• Growing demand for Huddly's solutions, total backlog • For the first time, Huddly had a direct adverse supply chain impact, with 16 MNOK of the backlog being • Most of these orders were cleared in the 1st month of

Strategic partners represented 55% of Q3 2021 revenue and channel partners represented 45%, both with solid growth quarter over quarter.

• Crestron and Google continue to be strong partners - Crestron added the Huddly L1 to the Crestron Flex camera line-up and deliveries started in October 2021 • Both partners cooperated closely with Huddly to mitigate supply chain risks - Huddly continues to increase its investment in Channel focused Sales and Marketing during the quarter, particularly in North America

Financials

• Revenue at 87.9 MNOK, down 8 % compared to Q3 2020

• Backlog of 87 MNOK, with 16 MNOK of the backlog • EBIT at loss 2.8 MNOK, compared to 25.1 MNOK in Q3

• being requested for shipment in Q3 2021 2020
• • Adjusted EBIT at 10.2 MNOK, compared to 25.4 2)

MNOK in Q3 2020 (excluding option expenses / IFRS

Financials – Revenue and Gross margin

• Revenue down 8% YoY in Q3 2021 • Q3 2021 revenue: 55% strategic partners and 45% channel partners • Q3 2021 gross margin percentage: 51%, impacted by PPVs

• Supply chain resiliency program, dual or multiple sourcing and manufacturing • Safety stock on components and finished goods with suppliers and sub-suppliers • Long term planning horizon, 12 months rolling

• Mitigate supply chain risks through early engagement forecast to contract manufacturers and key suppliers

Global Supply Chain

Financials – Adjusted P&L cost and Adjusted EBIT

• P&L cost base increasing in line with scaling of organization • Costs and EBIT adjusted* for 13.0 MNOK in IFRS 2 option expenses in Q3 2021

* See Huddly Q3 2021 Report, Note 4 for further details

Financials – Balance sheet

• Equity ratio of 83%

Financials – Outlook 2021

• Continued investments in products, go-to-market and

• • Revenue of 350 MNOK to 370 MNOK in FY 2021
• • Gross margin percentage around 50% in Q4 2021
• support functions to accommodate for long term
• growth
• • Product roadmap and Go-to-market strategy designed to take advantage of future growth
• opportunities
• market, supporting growth in 2022 and beyond

• Strong signs of improvements in the enterprise office

R&D and products

The problem

In video calls, you lose important social cues like facial expressions and gestures. This makes working together more cumbersome and frustrating than it has to be.

The solution

Intelligent cameras understand how people communicate with each other. Video meetings become engaging, and the team feels more connected and present. It's easier to have natural conversations and do great work together.

Gallery view

Gallery view

With Gallery View, participants at the back of a room get more visual space on the screen, making it easier for the team to engage in productive conversations with everyone.

Gallery View supports composite people feed in Microsoft Teams Rooms.

Huddly IQ will be the first of our cameras to offer Gallery View, with a software update coming before the end of the year.

Huddly L1 for Crestron

Crestron has added the Huddly L1 to the Crestron Flex camera lineup. L1 will enable smart video collaboration in medium and large rooms.

It joins Huddly IQ, which has been providing smart video in small to medium spaces as part of Flex's Mini Tabletop, Tabletop, and Soundbar solutions since 2018.

Disclaimer

This document (the "Presentation") has been produced by Huddly AS (the "Company", "Huddly"), to provide information to authorized recipients of this document ("Recipient"). An authorized recipient is a person to whom Huddly has directly provided a copy of this document or to whom Huddly has made available via a third party authorized by Huddly. The Recipient acknowledges and agrees that all intellectual property rights in the Report vests in the Company. The Recipient may only use this Presentation for the sole and exclusive purpose of considering potential investment in the Company. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including but not limited to projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein. This Presentation is current as at 30 September 2021, however, relates to Q3 2021. There may have been changes in matters which affect the Company subsequent to the date of this Presentation. Neither the issue nor delivery of this Presentation shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of the Company have not since changed. This Presentation is subject to Norwegian law, and any dispute or claim arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts.