Polight ASA — Investor Presentation 2022

May 12, 2022

First quarter 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 First 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 12 May 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
• ³ First quarter 2022 Earnings presentation • 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

• Design-in award and sample purchase order received for an Augmented Reality (AR) display related case
• Follow-up order related to the scan engine EX30 (Honeywell)
• ⁴ First quarter 2022 Earnings presentation • Augmented Reality opportunity pipeline promising, both for short/medium-term professional use cases and longer-term consumer applications
• Despite a somewhat softer smartphone market due to the challenging situation in China, progress still being made on existing and new PoCs
• Other application areas, such as medical and industrial are maturing

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
• Founded in 2005 and has since developed state-oftechnology and image applications and processing
• Holds 16 worldwide patent families, 10 pending applications and 3 registered trademarks
• 34 employees including long-term consultants
• ⁵ First quarter 2022 Earnings presentation • Headquartered in Horten, Norway, with offices in Finland and China, and representation in France, UK, USA, Taiwan, Russia, Korea and Japan

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

Smartphone: Add-in TLens® design concept remains promising

• Add-in TLens® design is attracting good interest
• Started to promote solutions meant for back camera applications
• Selfie camera solution still the most relevant short/medium-term
• ⁹ First quarter 2022 Earnings presentation • Asian OEM´s is suffering due to the situation in China and this will impact the appetite to release new phone models
• First potential smartphone cases will be pushed back from 2022 to 2023 and beyond
• PoC´s continues, and good technical progress has been made
• Customer demands are tough and a significant portion of the company's resources has been dedicated toward these cases

5 ongoing PoCs1 and 1 planning PoCs

1 Proof of Concept (PoC)

AR: Progress continues

• Design-in award and sample purchase order received for an Augmented Reality (AR) display related case, worth in excess of NOK 3.500.000
• ¹⁰ First quarter 2022 Earnings presentation • This design-in award gives the company an important opportunity to position TLens® for another use case in the AR space
• Low power consumption, no gravity sensitivity, speed, and compactness are being highlighted as key technical benefits
• AR market is still at an early stage, with low volumes, but anticipated to penetrate into the consumer market later years
• Two use cases : world facing camera & display solutions

AR: Progress continues

• New opportunity for our technology platform identified
• AR market will be an important market for the company

¹¹ First quarter 2022 - Earnings presentation 1 design-win 5 design-in´s, 4 ongoing PoCs and 5 OEMs planning PoCs Of the ongoing PoCs, 3 are related to consumer products

Education

use cases

Professional

Healtcare

Manufacturing

Barcode / Industrial

• During the quarter the company received a repeat order related to the EX30/Honeywell reader product
• Customer is reporting good market feedback
• ¹² First quarter 2022 Earnings presentation • This case represents an important reference for poLight and is clearly generating a lot of interest from other players in the market

of EX30 use cases

Examples

3 design-wins barcode)

Healthcare

• The Kavli activity has generated a lot of activity and the company are serving several new similar cases
• This activity is mainly seen as brand building and to support important research
• ¹³ First quarter 2022 Earnings presentation • The announced design-in related to the compact surgical device is progressing slowly but have the potential of being released to market this year 10 PoCs ongoing and 3 planning PoCs
• 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)	27 (22)	7 (7)	3 (8)
Augmented Reality	1 (1)	5 (2)	10 (6)	4 (9)	5 (4)
Industrial	3 (3)	2 (2)	14 (14)	7 (6)	8 (9)
Other (e.g. medical)	1 (1)	1 (1)	3 (2)	10 (5)	3 (8)
Number in ( ) represents last quarter	8 (8)	8 (5)	54 (44)	28 (27)	19 (29)
14 First quarter 2022 - Earnings presentation

Key financials

Key financials
Income statement			Balance sheet summary
(in NOK million)	Q1 2022 Q1 2021	FY 2021
Revenue	1.5	1.5 10.0
Cost of sales	-0.7	-0.3 -3.9
Research and development expenses	-11.8	-9.2 -25.4
Sales and marketing expenses	-3.9	-1.3 -7.2
Operational / supply chain expenses	-1.6	-2.5 -9.1
Administrative expenses	-2.0	-8.4 -6.9
EBITDA	-18.5 -20.2	-42.4
• Revenue reflects sales of TLens® and ASICs for commercial
use and sample deliveries for customer development projects
• EBITDA loss of NOK 18.5 million vs. loss of NOK 20.2 million in Q1 2021
• In Q1 2021 NOK 6.9 million were recognised in accrued
employer's national insurance contributions (NICs) relating to
the share option plan.
16 First 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 18.5 million vs. loss of NOK 20.2 million in Q1 2021
  • In Q1 2021 NOK 6.9 million were recognised in accrued employer's national insurance contributions (NICs) relating to the share option plan.

Income statement Balance sheet summary

(in NOK million)	Q1 2022	Q1 2021	FY 2021
Intangible assets	30.8	41.1	33.4
Inventories Cash and cash equivalents	20.7 150.2	8.9 68.4	16.8 157.8
Total equity	193.9	110.1	213.4
Total current liabilities Total equity and liabilities	23.0 220.6	23.0 133.1	21.3 238.7

Cash Flow

• Q1 cash used in operating activities was NOK 6.0 million, compared with NOK 11.2 million in Q1 2021
  • VAT claim of NOK 11 million were received
• Q1 cash used in investing activities was NOK 1.4 million
• ¹⁷ First quarter 2022 Earnings presentation • Q1 cash used in financing activities was NOK 0.2 million
• Q1 net decrease in cash was NOK 7.6 million

Q1 2022 cash flow development

Outlook

• The quarter has confirmed the potential in several market segments for both current and possible new products
• Activity within the AR area is strong and promising. A first design-win has
• The AR market is expected to be an important market for the company over time
• ¹⁹ First quarter 2022 Earnings presentation • poLight continues to position itself with respect to smartphone applications, and good technical progress has been achieved during the quarter, even though all issues likely have not yet surfaced/been resolved
• The situation in China seems to be impacting commercial opportunities in this market
• The potential smartphone cases will be pushed back from 2022 to 2023 and beyond
• The focus area going forward will be smartphone, augmented reality barcode and medical applications

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

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 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

Varioptic, Barco and Motorola/Symbol. Mr Craen holds an MSc in Optical Engineering from Sup-Optic, as well as an MSc in Applied Physics.

Marianne Sandal

Chief Operating Officer

²² First quarter 2022 - Earnings presentation 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 from Norwegian School of Management (BI). She has been responsible for world wide operations for more than 15 years.

Board of Directors

Ann-Tove Kongsnes - Chairman

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 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 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 HIB and took the Advanced Program in Corporate Finance at NHH. AS and Farmforce AS. Ms Viksaas has a master's degree in computer science from the University of Oslo.

Grethe Viksaas - Board member, independent

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 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

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 First 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 Stockholm, and studied business economics at Stockholm University.

Statement of

income
	NOK 000	Note	Q1 2022	Q1 2021	FY 2021
	Sale of goods		1 471	823	8 683
	Sale of services		0	722	1 350
	Revenue		1 471	1 545	10 032
	Cost of sales		-685	-314
	Gross profit		786	1 230	-3 851 6 182
	Research and development expenses net of governmental grants	7,8	-11 750	-9 219	-25 360
	Sales and marketing expenses		-3 876	-1 301	-7 224
	Operational / supply chain expenses		-1 632	-2 505	-9 139
	Administrative expenses	12	-1 980	-8 409	-6 868
	Earnings before depreciation and amortisation (EBITDA)		-18 452	-20 204	-42 409
	Depreciation and amortisation	9	-2 987	-3 032	-11 923
	Operating loss (EBIT)		-21 439	-23 236	-54 332
	Net financial items	6	546	225	944
	Loss before tax		-20 893	-23 011	-53 388
	Income tax expense		-1	-7	-93
	Loss for the period		-20 895	-23 018	-53 481

Balance sheet

NOK 000	Note	Q1 2022	Q1 2021	FY 2021
ASSETS
				2 356
				33 377
				4 778
				40 511
				16 836
				22 078
				1 456
				157 810
				198 180
Total assets		220 563	133 077	238 691
				2 077
				813 632
				1 035
				-603 335
				213 409
				0
				213 409
				3 934
				3 934
				19 906
				942
				500
Total current liabilities		22 976	23 018	21 349
Total liabilities		26 662	23 018	25 282
Total equity and liabilities		220 563	133 077	238 691
	Property, plant and equipment Intangible assets Right-of-use assets Total non-current assets Inventories Trade and other receivables Prepayments Cash and cash equivalents Total current assets EQUITY AND LIABILITIES Share capital Share premium Reserves Retained earnings Equity attributable to equity holders of the parent Non-controlling interests Total equity Lease liabilities Total non-current liabilities Trade and other payables Current lease liabilities Provisions	9 8 10	3 566 30 811 4 512 38 889 20 695 8 122 2 706 150 151 181 674 2 077 813 664 1 023 -622 864 193 901 0 193 901 3 686 3 686 21 515 961 500	937 41 079 645 42 661 8 852 8 727 4 421 68 417 90 417 1 826 683 411 1 001 -576 178 110 060 0 110 060 0 0 21 242 586 1 189

	NOK 000	Note	Q1 2022	Q1 2021	FY 2021
	Operating activities
	Loss before tax		-20 893	-23 011	-53 388
	Adjustments for:
Cash flow First quarter 2022 - Earnings presentation	Depreciation of property, plant and equipment and right-of-use
	assets		420	465	1 654
	Amortisation of intangible assets	9	2 567	2 567	10 269
	Net finance income		-546	-225	-944
	Equity-settled share-based payments		1 366	1 079	4 385
	Other non-cash items		-173	219	937
	Changes in unrealised net foreign exchange rate differences/fluctuations		37	73	21
	Changes in working capital:
	Decrease (+) in trade and other receivables and prepayments		10 942	-546	-11 332
	Increase (-) in inventories		-3 860	314	-7 669
	Increase (+) in trade and other payables	10	1 609	10 558	9 223
	Changes in provisions and government grants		1 764	-2 665	-2 954
	Interest received	6	808	19	585
	Interest paid	6	-89	-11	-203
	Income tax paid		-1	-7	-129
	Net cash flows used in operating activities		-6 049	-11 170	-49 546
	Investing activities
	Purchase of property, plant and equipment		-1 365	-247	-2 142
	Net cash flows used in investing activities		-1 365	-247	-2 142
	Financing activities
	Proceeds from issue of ordinary shares		0	0	137 803
	Proceeds from exercise of share options		33	3 204	3 397
	Transaction costs on issue of shares		0	-6	-7 530
	Payment of lease liabilities		-229	-462	-1 355
	Net cash flows from/(used in) financing activities		-196	2 736	132 315
	Net increase in cash and cash equivalents		-7 610	-8 681	80 627
	Effect of exchange rate changes on cash and cash equivalents		-49	-112	-26
	Cash and cash equivalents at the start of the period		157 810	77 209	77 209
			150 151	68 417	157 810