Polight ASA

Investor Presentation • Aug 18, 2022

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 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.

² Interim report Second quarter 2022 - Earnings presentation 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 forwardlooking 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 18 August 2022. 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

Today's agenda

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

Presenting

Chief Executive Officer

Dr. Øyvind Isaksen 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

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

• Confirmed design-win award and first mass production purchase order worth approximately NOK 0.6 million for a barcode scan engine reader product
• Signed an agreement to support a PoC (Proof of Concept) endoscopic camera system development with a top-tier medical device customer worth approximately NOK 1.7 million
• Good progress on most PoCs
• Augmented realty (AR) cases progressing well, with more design-wins possible this year
• Increased activity in the industrial market, especially barcode related
• ⁴ Interim report Second quarter 2022 Earnings presentation • Despite some smartphone OEMs experiencing reduced sales, the company
• shares

poLight at a glance

Background & description Geographical footprint

• Global player in tunable optics with applications in mobile, web cam, industrial, augmented reality, medical and others
• 5 Interim report Second quarter 2022 Earnings presentation • Founded in 2005 and has since developed state-oftechnology and image applications and processing
• Holds 17 worldwide patent families, 9 pending applications and 3 registered trademarks
• 36 employees including long-term consultants
• Headquartered in Horten, Norway, with employees in Finland, France, UK, USA, Russia, China and Taiwan

Instant focus

Small real estate Constant field of view power consumption

poLight products & technology well-suited for several applications

Smartphones and wearables

• Large addressable market for which billions of cameras are produced for the each year
• 1,5 billion phones per year with 1 front camera and an average of 3 back cameras
• Increasing demands on both camera functionality and battery life
• Potential addressable market for estimated at 3 billion units per year

Barcode/Industrial

• Evolving from 1D laser to 2D imaging barcode readers
• Lasers replaced by camera systems, where autofocus will improve efficiency in scanning and portfolio
• Barcode technology is spreading to new industries
• OEM scan engine vendors today are increasingly looking to enable machine vision capabilities on their current offerings

Augmented Reality (AR)

• AR is expected to to grow significantly as the technology is rapidly expanding beyond entertainment and gaming to an increasing number of industrial, commercial, educational applications and later become a consumer device

Other

• New opportunities are emerging that could represent significant potential
• Video conferencing and endoscopy are just two examples of new opportunities for poLight technology

Consumer/smartphone: Add-in TLens® design opens opportunities

• Add-in TLens® design is attracting good interest
• Several reference designs have been developed to position TLens® for various use cases
• Selfie camera solution still the most relevant short/medium-term
• Even though some smartphone OEMs are experiencing reduced sales,
• 9 Interim report Second quarter 2022 Earnings presentation applications
• Other applications, such as webcams, drones, etc., are also being explored

3 design-win, 11 ongoing PoCs1 and 5 planning PoCs

11 PoC: 4 AR, 5 smartphone, 1 iris, 1 webcam

1 Proof of Concept (PoC)

AR: Progress continues

• TLens is being considered by several important market players for use in next generation AR headsets, and testing/prototype building is continuing
• ¹⁰ Interim report Second quarter 2022 Earnings presentation • Low power consumption, no gravity sensitivity, temperature stabilisation (often called athermalisation), high speed and compactness are highlighted as key technical benefits
• The already announced design-win is progressing well and it is expected that the product will be released to market this year
  • Follow-on order announced 16 august 2022
• Further design-wins could be achieved before the year is out
• Two use cases : world facing camera & display solutions

AR: Progress continues

• The augmented reality (AR) market is opening many opportunities for the company, in addition to TLens and camera applications
• The company recently announced a design-in related to the use of TLens for a display application
• 11 Interim report Second quarter 2022 Earnings presentation • Realising increased resolution for AR displays has been identified as another new product opportunity for our technology platform
• A PoC is already ongoing with a well-recognised player
• AR market will be an important market for the company

1 design-win, 5 design-in´s (1 consumer),

Barcode / Industrial

• During the quarter, the company received its fourth design-win related to a barcode application
• The opportunity pipeline for this market segment is quite promising and has the potential to be a significant margin contributor
• 12 Interim report Second quarter 2022 Earnings presentation • It will, however, take time to develop this market and will require entry into some broader application areas 4 design-wins, 1 design-in and 9 PoCs (5 barcode)
• Over and above barcode applications, the company is involved in various other industrial applications.

Examples

Healthcare

• During the quarter, the company signed a very important development contract, worth approximately NOK 1.7 million, with a tier-one medical equipment supplier for potential use in an endoscopic camera system • The Kavli activity has generated a lot of activity and the company are 10 PoCs ongoing
• serving several new similar cases
• This activity is mainly seen as brand building and to support important research
• 13 Interim report Second quarter 2022 Earnings presentation • The announced design-in related to the compact surgical device is progressing and have the potential of being released to market this year
• The company has identified other similar opportunities and see this an important application area going forward

1 design-win (Kavli) 1 design-in (surgical device)

Good progress in most customer cases

Good progress in most customer cases
	Design-win	Project	Completed PoC	Ongoing PoC	Planning PoC
Consumer	3 (3)	0 (0)	28 (27)	7 (7)	5 (3)
Augmented Reality	1 (1)	5 (5)	10 (10)	5 (4)	6 (5)
Industrial	4 (3)	1 (2)	17 (14)	9 (7)	11 (8)
Other (e.g. medical)	1 (1)	1 (1)	3 (3)	10 (10)	7 (3)
Number in ( ) represents last quarter	9 (8)	7 (8)	58 (54)	31 (28)	29 (19)
14 Interim report Second quarter 2022 - Earnings presentation

Key financials

Key financials Income statement			Balance sheet summary
(in NOK million) Revenue	Q2 2022 Q2 2021 2.5 2.9	FY 2021 10.0
Cost of sales	-0.7 -1.3	-3.9
Research and development expenses	-7.9 -7.6	-25.4
Sales and marketing expenses	-2.9 -1.4	-7.2
Operational / supply chain expenses	-2.7 -2.5	-9.1
Administrative expenses	-2.3 -3.7	-6.9
EBITDA	-13.9 -13.7	-42.4
• Revenue reflects sales of TLens® and ASICs for commercial use and sample deliveries for customer development projects • EBITDA loss of NOK 13.9 million vs. loss of NOK 13.7 million in Q2 2021 • Increased sales resources and R&D/operational personnel • Due to share price decline in the quarter, NOK 3.5 million in accrued employer's national insurance contributions (NICs)			million in the quarter
relating to the share option plan, has been reversed (negative expense). 16 Interim report Second quarter 2022 - Earnings presentation

• Revenue reflects sales of TLens® and ASICs for commercial use and sample deliveries for customer development projects
• EBITDA loss of NOK 13.9 million vs. loss of NOK 13.7 million in Q2 2021
  • Increased sales resources and R&D/operational personnel
  • Due to share price decline in the quarter, NOK 3.5 million in accrued employer's national insurance contributions (NICs) relating to the share option plan, has been reversed (negative expense).

Income statement Balance sheet summary

FY 2021	Q2 2021
38.5 33.4	28.5
8.6 16.8	30.5
157.8
	124.4 55.6
94.3 213.4	178.1
22.2 21.3	24.3
120.9 238.7	205.9
	Q2 2022

• Cash position of NOK 124.4 million, compared with NOK 55.6 million at Q2 2021
• Inventory of NOK 30.5 million compared with NOK 8.6 million at Q2 2021. The inventory has increased by NOK 9.8 million in the quarter

Cash Flow

• Q2 cash used in operating activities was NOK 22.8 million, compared with NOK 12.6 million in Q2 2021
  • Increased inventory by NOK 9.8 million
• Q2 cash used in investing activities was NOK 3.1 million
• Q2 net decrease in cash was NOK 25.9 million

Q2 2022 cash flow development

Outlook

• The quarter has again confirmed the potential in several market segments
• The opportunity pipeline is encouraging in many market segments
• The main focus going forward will be to position poLight in relation to smartphone cases, mature the augmented reality projects/PoCs, gradually build more cases in the industrial segment (e.g. barcode), and increasingly position the company in the medical space
• Other opportunities have been identified and will be considered and explored on the basis of the individual business case and resource situation
• From a portfolio perspective, the focus will be to offer, and continuously improve, the existing products for all the above market segments
• Our capability and capacity to develop system reference designs using the various TLens® solutions has improved significantly and will be an important tool for broadening the application areas of existing products
• ¹⁹ Interim report Second quarter 2022 Earnings presentation • The company plans to develop new variants of TLens® and new products based on same technology platform, though the timing of such activities is still under consideration and will depend on customer demands

Management Team Dr. Øyvind Isaksen

Chief Executive Officer

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

22 Interim report Second quarter 2022 - 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. 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

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

Grethe Viksaas - Chairman, independent

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 international experience in the semiconductor business, previously as Director for the Nordic region for Xilinx Inc. He has also been working at Philips Semiconductor. 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 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

Ann-Tove Kongsnes - Board member

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. Thomas Görling is a Senior Investment Director at Stiftelsen Industrifonden (Sweden) with a comprehensive involvement in building successful technology companies. Representing Industrifonden, he has been engaged in a number of portfolio company boards, at present Medtentia International Ltd Oy (Finland) and eBuilder AB (Sweden). Before joining Industrifonden Stockholm, and studied business economics at Stockholm University. AS and Farmforce AS. Ms Viksaas has a master's degree in computer science from the University of Oslo.

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

Thomas Görling - Board member

23 Interim report Second quarter 2022 - Earnings presentation in 1998, Mr. Görling held management positions within the European optical instrument and systems industry. Thomas holds a Master of Science from the Royal Institute of Technology in

Statement of income

24 Interim report Second quarter 2022 - Earnings presentation

Balance sheet

Balance sheet
25 Interim report Second quarter 2022 - Earnings presentation

Cash flow

Cash flow
26 Interim report Second quarter 2022 - Earnings presentation