First quarter 2021 - Earnings presentation 7th May 2021

Disclaimer

This presentation (the "Presentation") has been produced by poLight ASA (the "Company") exclusively for information purposes. This Presentation has not been approved, reviewed or registered with any public authority or stock exchange. Further to the aforementioned, this presentation is the result of an effort of the Company to present certain information which the Company has deemed relevant in accessible format. This Presentation is not intended to contain an exhaustive overview of the Company's present or future financial condition and there are

² First quarter 2021 - Earnings presentation several other facts and circumstances relevant to the Company and its present and future financial condition that not been included in this Presentation. This Presentation may not be disclosed, in whole or in part, or summarized or otherwise reproduced, distributed or referred to, in whole or in part, without prior written consent of the Company. This Presentation contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates or intends to operate. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or any of its subsidiary undertakings or any such person's officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company assumes no obligation to update any forward-looking statements or to conform these forward-looking statements to our actual results. Furthermore, information about past performance given in this Presentation is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither the Company nor any of its parent or subsidiary undertakings or any such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. By reviewing this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the businesses of the Company. This Presentation must be read in conjunction with the recent financial reports of the Company and the disclosures therein. The distribution of this Presentation in certain jurisdictions may be restricted by law. Persons in possession of this Presentation are required to inform themselves about, and to observe, any such restrictions. No action has been taken or will be taken in any jurisdiction by the Company that would permit the possession or distribution of this Presentation in any country or jurisdiction where specific action for that purpose is required. No shares or other securities are being offered pursuant to this Presentation. This Presentation does not constitute an offer to sell or form part of, and should not be construed as, an offer or invitation for the sale or subscription of, or a solicitation of an offer to buy or subscribe for, any shares or other securities in any jurisdiction, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any offer, contract, commitment or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Company. By reviewing this Presentation you agree to be bound by the foregoing limitations. This Presentation speaks as of 7 May 2021. Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. The Company does not intend, and does not assume any obligation, to update or correct any information included in this Presentation. This Presentation shall be governed by Norwegian law, and any disputes relating to hereto is subject to the sole and exclusive jurisdiction of Norwegian courts, with Nordre Vestfold District Court as legal venue.

Today's agenda

• Key events

Introduction to poLight
Operations and markets review
Financial review
Outlook
Q&A

Dr. Øyvind Isaksen Chief Executive Officer

Presenting

Dr. Isaksen has been CEO of poLight since August 2014. He has previously held several CEO positions, most recently in the publicly listed company Q-Free ASA, which he left in January 2014, after 7 years as CEO. Øyvind Isaksen holds a PhD in Applied Physics.

Alf Henning Bekkevik Chief Financial Officer

³ First quarter 2021 - Earnings presentation Bekkevik is a senior executive with a background from Arthur Andersen (E&Y), Wallendahl, Fjord Line, Grenland Group and lately from Wood Group Mustang as VP Finance. He holds a Master in Business & Economics (Siviløkonom) degree from NHH and is a state certified public accountant.

Key events in the quarter

poLight received a follow-up purchase order related to the Honeywell EX30 barcode scan engine
in consumer and professional markets
The positive development related to smartphone market continues
First design-win for a web camera application post Q1

poLight at a glance

use in the mobile, barcode readers, augmented reality and other markets
Founded in 2005 and has since build stateof-the-art expertise in optics, polymers MEMS technology and image applications and processing
14 worldwide patents families, 10 pending applications and 3 registered trademarks
28 employees (incl. long term consultants)
Headquartered in Horten, Norway, with offices in Finland, China, France and representation in Taiwan, Korea and Japan

poLight products & technology well-suited for several applications

Smartphone & wearable	Barcode/industrial	Augmented Reality (AR)	Other

• Large addressable market, billions of cameras produced for the each year • 1,5 billion phones/year (1 front cam + 3 (in average) back cam) -> 6 billion cam/year • Potential addressable market for TLens/poLight technology : 1 front cam + 1 back cam –> 3 billion/year • Focus on camera functionality increasing	• Evolving from 1D laser to 2D imaging barcode readers • Lasers replaced by camera systems. Autofocus will improve efficiency in scanning and portfolio • Barcode technology spreading to new industries • OEM scan engine vendors today are increasingly looking towards enabling machine vision capabilities on current offerings	• Augmented reality expected to be "the next big thing" • AR glasses will be firstly be deployed for professional use cases and gradually become a consumer device	• New opportunities emerging and may represent significant potential • Video conferencing and endoscope are some recent examples of new opportunities for poLight technology
6	First quarter 2021 -	Earnings presentation

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Operations and market review

Barcode: Follow-up order for EX30

Promising feedback from the market
The EX30 scan engine is sold to other OEMs for use in various barcode products
Release of EX30 has build more appetite among other
⁸ First quarter 2021 Earnings presentation potential customers and number of PoC has increased • Will continue to actively explore this market, which is expected to be an important gross margin contributor in the longer term

* Source: Honeywell homepage

AR: TLens considered for next generation glasses by several OEM´s • AR market is still at an early stage, with low volumes

TLens offers several advantages related to power consumption, speed, compactness and no gravity sensitivity
poLight is well positioned for market entry at an early stage
Involved in cases both for professional and potential consumer use case (2 projects and 3 PoC)
Testing/prototype building ongoing with promising results
Potential design-win end of year / next half year (professional use case)
This is potentially long term the most important consumer segment for poLight

Smartphone: First add-in project moved from PoC to project • Design-in confirmation

Start shipping TLens for phone protype phase
Testing on component and system level continues
Improvement activities ongoing
Ramp-up under planning
Current phone release plan is implying deliveries from poLight from Q4-2021
Well recognised camera module supplier & OEM are heavily engaged
In sum very good progress, but not a "done deal"

Smartphone: Add-in TLens® concept trigger new front facing initiatives

Tuneable optics, such as TLens®, is getting more and more attention
New initiatives are underway involving other camera module vendors and OEMs
This concept has the potential to become the mainstream solution for selfie cameras
New add-in design also relevant for smartwatch

Web camera / Video conferencing

The pandemic has forced us to cooperate more and more virtual, and video conferring has increased in use
poLight technology will be potential good fit for web camera application due to constant field of view and speed
Longer term volumetric video conferencing based on dual camera and light field imaging will benefit from TLens speed and constant field view

¹² First quarter 2021 - Earnings presentation Web cam design win - Maxhub

"The newly released web camera MAXHUM UC W20 …. This is an important product for us, because remote collaboration plays a more critical role in the workplace. A product that offers seamless video conferencing …. By adopting TLens® technology, it ensures a smoother meeting experience by instant autofocus. We do see several other opportunities for applying the TLens® in the future", says Vice General Manager Darren Lin from MAXHUB.

Continuing progress during the quarter


	Ongoing supply	Project	Completed PoC	Ongoing PoC	Planning PoC
Consumer	3 (2)	1 (1)	14 (14)	14 (15)	7 (5)
Industrial	1 (1)	4 (2)	12 (10)	7 (8)	3 (3)
Other (e.g. medical)		1 (1)	1 (1)	4 (3)	1 (0)
	4 (3)	6 (4)	27 (25)	25 (26)	11 (8)
(x): last quarter number 13	First quarter 2021 -	Earnings presentation

Financial review

Key financials

Key financials
Income statement				Balance sheet summary
(in NOK million)	Q1 2021	Q1 2020	FY 2020
Revenue	1.5	0.5	3.0
Cost of sales	-0.3	-0.1	-0.7
Research and development expenses	-9.2	-5.5	-20.4
Sales and marketing expenses	-1.3	-2.3	-5.4
Operational / supply chain expenses	-2.5	-3.5	-8.0
Administrative expenses	-8.4	-5.3	-7.7
EBITDA	-20.2	-16.1	-39.2
• Revenue reflects sales of TLens and ASICs for commercial use and services & sample deliveries for customer development projects • EBITDA loss of NOK -20.2 million vs. loss of NOK -16.1 million in Q1 2020 • Accrued employer's national insurance contributions (NICs) relating to the share option plan of NOK 6.9 million (NOK 0.3 million), mainly attributable to the increase in poLight's share price in the period				• Cash position of NOK 68.4 million, compared with NOK 50.9 million at Q1 2020 accrued NICs • According to current plan, the cash deposits will fund Group activities throughout 2021
• Reduced operating expenses of NOK 2.2 million 15			First quarter 2021 -	Earnings presentation

Revenue reflects sales of TLens and ASICs for commercial use and services & sample deliveries for customer development projects
EBITDA loss of NOK -20.2 million vs. loss of NOK -16.1 million in Q1 2020
- Accrued employer's national insurance contributions (NICs) relating to the share option plan of NOK 6.9 million (NOK 0.3 million), mainly attributable to the increase in poLight's share price in the period
- Reduced operating expenses of NOK 2.2 million

Key financials



Income statement				Balance sheet summary
(in NOK million)	Q1 2021	Q1 2020	FY 2020	(in NOK million)	Q1 2021	Q1 2020	FY 2020
Revenue	1.5	0.5	3.0	Intangible assets	41.1	51.4	43.6
Cost of sales	-0.3	-0.1	-0.7	Inventories	8.9	9.0	9.2
Research and development expenses	-9.2	-5.5	-20.4	Cash and cash equivalents	68.4	50.9	77.2
Sales and marketing expenses	-1.3	-2.3	-5.4	Total equity	110.1	110.4	128.8
Operational / supply chain expenses Administrative expenses	-2.5 -8.4	-3.5 -5.3	-8.0 -7.7	Total current liabilities	23.0	9.9	12.9

Cash position of NOK 68.4 million, compared with NOK 50.9 million at Q1 2020
Increased current liability from NOK 12.9 million at year end 2020 to NOK 23.0 at Q1 2021 mainly attributable to accrued NICs
According to current plan, the cash deposits will fund Group activities throughout 2021

Cash Flow

Q1 cash used in operating activities was NOK 11.2 million, compared with NOK 22.2 million in Q1 2020
- The decrease is attributable to working capital changes and reduced operating expenses
Q1 cash from in financing activities was NOK 2.7 million (share options)
Q1 net decrease in cash was NOK 8.7 million

Q1 2021 cash flow development

Outlook

Continuing progress during the quarter;
- smartphone projects progressing
- barcode follow up order
- and other customer opportunities maturing in several segments
- design-win for a web camera application post Q1
Still much to be done in all parts of the value chain, and success will not be achieved without a determined effort
To improve progress on important longer-term endeavours and cater for increasing activity, poLight is seeking to strengthen its organisation and has employed 3 new since beginning of the year
The progress gives grounds for growing confidence in the
fund activities throughout 2021

Operating and financial targets

Operating milestones

Next event:

Appendix

•Appendix

Management Team

Dr. Øyvind Isaksen

Chief Executive Officer

Alf Henning Bekkevik

Chief Financial Officer

Bekkevik is a senior executive with a background from Arthur Andersen (E&Y), Wallendahl, Fjord Line, Grenland Group, and, most recently, as VP Finance for Wood Group Norway AS. He holds a master's degree in business & economics (Siviløkonom) from NHH, and is a certified public accountant.

Pierre Craen

Chief Technology Officer

²² First quarter 2021 - Earnings presentation Craen is a senior executive with more than 20 years' experience in opto-mechanical systems engineering. Prior to joining poLight, he managed product development teams at Varioptic, Barco and Motorola/Symbol. Mr Craen holds an MSc in Optical Engineering from Sup-Optic, as well as an MSc in Applied Physics. from Norwegian School of Management (BI). She has been responsible for world wide operations for more than 15 years.

Marianne Sandal

Chief Operating Officer

Sandal is a senior executive with background from Tele-communications (Nera) and Road User Charging (Q-Free). She holds a BSc in Mechanical Engineering in addition to courses

Board of Directors

Eivind Bergsmyr – Chairman, independent (from March-2020) Mr. Bergsmyr has been a partner at Viking Venture since 2009, and serves on the boards of several Viking Venture portfolio companies. He is the current chair of Xait AS, DinERP AS, Tamigo ApS, Flowbox AB, Humly Edtech AB and board member of Attensi AS. He is the former chair of GasSecure AS (sold to Dräger) and former board member of Nanoradio AB (sold to Samsung). Mr Bergsmyr was previously CEO of the Norwegian startup Nacre AS, sold in 2007 to Sperian Protection and recognised as the Nordic Venture Exit of the Year. Prior to this, Mr Bergsmyr acquired extensive industrial experience during his time at Siemens. He holds an MSc in Electronic Engineering from NTNU. Ms. Kongsnes is an Investment Director at Investinor AS. Kongsnes has over her career gained extensive experience from investments, development, M&A, IPO's and exits of technology serves on the boards of 6 of Investinor's portfolio companies in addition to 4 Chair/member seats in Nomination Committees. She holds an MSc in Economics and Business Administration from Juha Alakarhu is the VP of Imaging at Axon in Tampere, Finland. He runs the Axon R&D office in Finland and is responsible for the imaging system for Axon camera products. Dr Alakarhu's Grethe Viksaas has a long career from the Northern European managed service provider Basefarm AS. First as founder and CEO, and later as executive chair and member of the board of directors. Prior to Basefarm, Ms Viksaas served as CEO for SOL System AS and in several management positions in IT companies. She has experience from numerous board positions, including

Ann-Tove Kongsnes - Deputy Chairman

companies. Prior to this, she worked 7 years with international marketing, and was formerly a Director of Marketing and Operations. Kongsnes has extensive board experience, and currently HIB and took the Advanced Program in Corporate Finance at NHH. international experience in the semiconductor business, previously as Director for the Nordic region for Xilinx Inc. He has also been working at Philips Semiconductor. AS and Farmforce AS. Ms Viksaas has a master's degree in computer science from the University of Oslo.

Grethe Viksaas - Board member, independent

²³ First quarter 2021 - Earnings presentation Telenor ASA. She is currently a non-executive director on the boards of Link Mobility Group Holding ASA and Crayon Group Holding ASA. She also serves as Chair of the Board in No Isolation

Dr. Juha Alakarhu - Board member, independent

entire career has been devoted to developing cameras. Before joining Axon in 2018, he worked for Nokia and Microsoft, where he developed several pioneering camera solutions, such as oversampling (the 41-megapixel camera), optical image stabiliser, and virtual reality technology. Juha Alakarhu holds a PhD from Tampere University of Technology.

Svenn-Tore Larsen - Board member, independent

Mr. Larsen is an Electronic Engineer from the University of Strathclyde, UK. He was appointed Chief Executive Officer of Nordic Semiconductor in February 2002. Mr. Larsen has broad

Statement of income

Statement of income

NOK 000	Note	Q1 2021	Q1 2020	FY 2020
Revenue		1 545	536	3 019
Cost of sales		-314	-61	-698
Gross profit		1 230	475	2 321

Research and development expenses net of governmental grants	7,8	-9 219	-5 507	-20 432
Sales and marketing expenses Operational / supply chain expenses		-1 301 -2 505	-2 264 -3 498	-5 419 -7 972
Administrative expenses	12	-8 409	-5 327	-7 734
Operating result before depreciation and amortisation (EBITDA)		-20 204	-16 122	-39 237

Depreciation and amortisation	9	-3 032	-3 052	-12 132
Operating result (EBIT)		-23 236	-19 174	-51 369
Net financial items	6	225	-95	417
Loss before tax		-23 011	-19 269	-50 952
Income tax expense		-7	1	-203
Loss for the period		-23 018	-19 269	-51 155

Earnings per share:
Basic, attributable to ordinary equity holders of the parent (NOK)		-2.54	-2.37	-5.93
Diluted, attributable to ordinary equity holders of the parent (NOK)		-2.54	-2.37	-5.93




First quarter 2021 - Earnings presentation 24

Balance sheet

Balance sheet

NOK 000	Note	Q1 2021	Q1 2020	FY 2020
ASSETS
Property, plant and equipment Intangible assets	9	937 41 079	1 209 51 365	839 43 646
Right-of-use assets		645	1 625	964
Total non-current assets		42 661	54 199	45 448
Inventories		8 852	8 967	9 166
Trade and other receivables Prepayments	8	8 727 4 421	6 399 299	6 040 3 897
Cash and cash equivalents		68 417	50 870	77 209
Total current assets		90 417	66 534	96 312
Total assets		133 077	120 733	141 761
EQUITY AND LIABILITIES
Share capital Share premium		1 826 683 411	1 623 678 862	1 810 680 229
Reserves		1 001	1 115	1 040
Retained earnings Equity attributable to equity holders of the parent		-576 178 110 060	-571 173 110 427	-554 239 128 840
Non-controlling interests		0	0	0
Total equity		110 060	110 427	128 840
Lease liabilities		0	440	0
Total non-current liabilities		0	440	0
Trade and other payables Current lease liabilities	10	21 242 586	7 160 1 262	10 684 1 048
Provisions	11	1 189	1 444	1 189
Total current liabilities		23 018	9 866	12 921
Total liabilities		23 018	10 307	12 921
Total equity and liabilities		133 077	120 733	141 761



First quarter 2021 - 25	Earnings presentation

Cash flow

Cash flow

NOK 000	Note	Q1 2021	Q1 2020	FY 2020
Operating activities
Loss before tax Adjustments for:		-23 011	-19 269	-50 952
Depreciation and impairment of property, plant and equipment and right-of-use assets		465	481	1 842
Amortisation and impairment of intangible assets	9	2 567	2 571	10 290
Net finance income Equity-settled share-based payment transactions		-225 1 079	95 1 027	-417 3 672
Other items related to operating activities		219	-120	-473
Changes in unrealised net foreign exchange rate differences/fluctuations		73	187	221
Changes in working capital: Increase (-) in trade and other receivables and prepayments		-546	396	-2 902
Decrease (+) in inventories		314	- 1 239	-1 439
Increase (+) in trade and other payables Changes in provisions and government grants	10	10 558 -2 665	-3 154 -3 235	1 655 -4 718
Interest received	6	19	95	851
Interest paid Income tax paid	6	-11 -7	-21 -52	-68 -196
Net cash flows used in operating activities		-11 170	-22 238	-42 633
Investing activities
Purchase of property, plant and equipment Net cash flows used in investing activities		-247 -247	-153 -153	-226 -226

Financing activities Proceeds from issue of ordinary shares		0	0	50 000
Proceeds from exercise of share options		3 204	0	738
Transaction costs on issue of shares Payment of lease liabilities		-6 -461	0 -305	-3 005 -1 119
Net cash flows from/(used in) financing activities		2 736	-305	46 614
			-22 697	3 755
Net increase in cash and cash equivalents		-8 681
Effect of exchange rate changes on cash and cash equivalents Cash and cash equivalents at the start of the period		-112 77 209	104 73 463	-9 73 463

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