Polight ASA

Investor Presentation • Feb 18, 2022

Fourth quarter 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 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 Fourth quarter 2021 - 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 February 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 Fourth quarter 2021 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-win from first augmented reality (AR) customer
• Design-win for barcode manufacturing line applications
• poLight won the VAT appeal case (NOK 12 million in cash effect in January)
• Subsequent Share Issue raised gross proceeds of approximately NOK 12.8 million
• Opportunity pipeline strengthened
• ⁴ Fourth quarter 2021 Earnings presentation • Follow-up order related to the scan engine EX30 received in January 2022

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 Fourth quarter 2021 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

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

Smartphone: Interest in TLens® remains high

• Add-in TLens® design is attracting good interest
• Potential to become a widely used solution for selfie cameras and may represent a route to the main camera (back camera) for TLens®
• Progress on several Proof of Concept (PoC) projects, with OEMs and camera module (CM) vendors during the quarter
• ⁹ Fourth quarter 2021 Earnings presentation • Customers showing strong willingness and making significant investments to qualify the use of TLens®
• Customer demands are tough and a significant portion of the company's resources is dedicated toward these cases

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

1 Proof of Concept (PoC)

AR: First design-win announced and more opportunities to come

• First design-win confirmation and first mass production purchase order for an augmented reality (AR) product announced during the quarter
  • Expected market release in 2022
• ¹⁰ Fourth quarter 2021 Earnings presentation • 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
• Two use cases : world facing camera & tuning for laser display

1 design-win

2 potential new design-wins in 2022 (professional use case) Of the ongoing PoCs, 4 are related to consumer products

Barcode / Industrial

• New design-win awarded for a barcode reader product
  • Designed for dynamic collection of barcodes in high-speed manufacturing lines
  • Released to selected customers end of 2021
• TLens® now used in three available products
• ¹¹ Fourth quarter 2021 Earnings presentation • Follow-up order related to the scan engine EX30 received in January 2 design-ins, 6 PoCs (2 barcode) and 9 OEM´s planning PoCs (4 barcode)
  • Accumulated order intake approx. NOK 5.4 millions so far
  • Good feedback

3 design-wins

Examples of EX30 use cases

Healthcare

• Starting to see some good interest related to compact surgical equipment
• Neural Computation, a microscope for internal use)
• 1 design-win (Kavli Institute for Systems Neuroscience and Centre for these are slow processes • Several similar cases to Kavli maturing 5 PoCs ongoing and 8 planning PoCs
• • In total, supplying stacked TLens® to microscope applications has so far resulted in purchase orders worth approximately NOK 1.5 million
  • of which approximately MOK 0.6 million is reported as revenue as per Q4-21
• ¹² Fourth quarter 2021 Earnings presentation • The company see this activity this as important brand-building and as well as a contribution to important research

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)	22 (17)	7 (9)	8 (2)
Augmented Reality	1 (0)	2 (3)	6 (6)	9 (6)	4 (4)
Industrial	3 (2)	2 (3)	14 (14)	6 (3)	9 (8)
Other (e.g. medical)	1 (0)	1 (1)	2 (2)	5 (3)	8 (4)
	8 (5)	5 (7)	44 (39)	27 (21)	29 (18)
13 Fourth quarter 2021 - Earnings presentation

Key financials

Key financials Income statement		Balance sheet summary
(in NOK million) Revenue Cost of sales Research and development expenses Sales and marketing expenses Operational / supply chain expenses Administrative expenses EBITDA	Q4 2021 Q4 2020 FY 2021 FY 2020 3.9 1.2 10.0 3.0 -1.3 -0.4 -3.9 -0.7 -6.6 -5.3 -25.4 -20.4 -3.3 -1.1 -7.2 -5.4 -2.7 -1.3 -9.1 -8.0 4.3 -3.0 -6.9 -7.7 -5.7 -10.0 -42.4 -39.2
• • Q4 2020 • positive outcome of the VAT appeal case	Revenue reflects sales of TLens® and ASICs for commercial use and sample deliveries for customer development projects EBITDA loss of NOK 5.7 million vs. loss of NOK 10.0 million in NOK 12 million recognised as a cost reduction as a result of the
• price in the period 15 Fourth quarter 2021 - Earnings presentation	Accrued employer's national insurance contributions (NICs) relating to the share option plan of NOK 4.7 million (NOK 0.1 million), mainly attributable to the increase in poLight's share

• Revenue reflects sales of TLens® and ASICs for commercial use and sample deliveries for customer development projects
• EBITDA loss of NOK 5.7 million vs. loss of NOK 10.0 million in Q4 2020
  • NOK 12 million recognised as a cost reduction as a result of the positive outcome of the VAT appeal case
  • Accrued employer's national insurance contributions (NICs) relating to the share option plan of NOK 4.7 million (NOK 0.1 million), mainly attributable to the increase in poLight's share price in the period

Income statement Balance sheet summary

(in NOK million)	2021	2020
Intangible assets	33.4	43.6
Inventories	16.8	9.2
Cash and cash equivalents	157.8	77.2
Total equity Total current liabilities	213.4 21.3	128.8 12.9

• Cash position of NOK 157.8 million, compared with NOK 77.2 million at Q4 2020
• Subsequent Share Issue raised gross proceeds of approximately NOK 12.8 million

Cash Flow

• Q4 cash used in operating activities was NOK 16.6 million, compared with NOK 1.7 million in Q4 2020
  • Q4-2020: VAT settlements of NOK 8.2 million were received as a result of being re-registered in the VAT Register
• ¹⁶ Fourth quarter 2021 Earnings presentation • Q4 cash received from financing activities was NOK 11.6 million
  • Subsequent Share Issue raised gross proceeds of approximately NOK 12.8 million
• Q4 net decrease in cash was NOK 6.2 million

Q4 2021 cash flow development

Outlook

• During the quarter the company achieved two design-wins and made overall good progress in all the market segments being explored
• The opportunity pipeline is developing positively, with developments in the AR space being considered particularly promising
• Smartphone customers and the company are putting considerable effort into maturing cases and qualifying TLens® for commercial use
  • Demanding process
  • Encouraging progress was made during the quarter
  • Hurdles still to be overcome
  • Making our supply chain ready for various applications is also demanding
• ¹⁸ Fourth quarter 2021 Earnings presentation • Organisation is being strengthened to handle the foreseen increased activity with respect to supporting and maturing customer cases as well as handling technical and supply chain challenges
• players in this important technology space
• The focus area going forward will continue to be smartphone, augmented reality (AR) and barcode applications

Management Team

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, 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

²¹ Fourth 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.

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 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

²² Fourth quarter 2021 - 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

Sale of goods 3 906 1 056 8 683 Rendering of services 0 188 1 350 Revenue 3 906 1 244 10 032 Cost of sales -1 311 -382 -3 851 Gross profit 2 595 862 6 182 Research and development expenses net of governmental grants 7,8 -6 552 -5 337 -25 360 Sales and marketing expenses -3 291 -1 111 -7 224 Operational / supply chain expenses -2 742 -1 333 -9 139 Administrative expenses 12 4 311 -3 038 -6 868 Operating result before depreciation and amortisation (EBITDA) -5 679 -9 957 -42 409 Depreciation and amortisation 9 -2 949 -3 011 -11 923 Operating result (EBIT) -8 629 -12 968 -54 332 Net financial items 6 760 338 944 Loss before tax -7 869 -12 630 -53 388 Income tax expense 13 -182 -93 Loss for the period -7 856 -12 812 -53 481		NOK 000	Note	Q4 2021	Q4 2020	FY 2021	FY 2020
							2 590
							429
							3 019
							-698
							2 321
							-20 432
							-5 419
							-7 972
							-7 734
							-39 237
							-12 132
							-51 369
							417
							-50 952
							-203
							-51 155
	23 Fourth quarter 2021 - Earnings presentation

Balance sheet

	NOK 000	Note	2021	2020
	ASSETS
Balance sheet
	Property, plant and equipment		2 356	839
	Intangible assets	9	33 378	43 646
	Right-of-use assets		4 778	964
	Total non-current assets		40 512	45 448
	Inventories		16 836	9 166
	Trade and other receivables	8	22 078	6 040
	Prepayments		1 456	3 897
	Cash and cash equivalents		157 810	77 209
	Total current assets		198 180	96 312
	Total assets		238 691	141 761
	EQUITY AND LIABILITIES
	Share capital		2 077	1 810
	Share premium		813 632	680 229
	Reserves		1 035	1 040
	Retained earnings		-603 335	-554 238
	Equity attributable to equity holders of the parent		213 409	128 840
	Non-controlling interests		0	0
	Total equity		213 409	128 840
	Lease liabilities		3 934	0
	Total non-current liabilities		3 934	0
	Trade and other payables	10	19 906	10 684
	Current lease liabilities		942	1 048
	Provisions	12	500	1 189
	Total current liabilities		21 349	12 921
	Total liabilities		25 282	12 921
Fourth quarter 2021 - Earnings presentation	Total equity and liabilities		238 691	141 761

Cash flow Operating activities Profit / loss (-) for the period -7 869 -12 630 -53 388 Adjustments for: Depreciation and impairment of property, plant and equipment and right-of-use assets 382 440 1 654 Amortisation and impairment of intangible assets 9 2 567 2 571 10 269 Net finance income -760 -338 -944 Equity-settled share-based payroll expense 1 600 1 273 4 385 Other items related to operating activities 588 -362 937 Changes in unrealised net foreign exchange rate differences/fluctuations 16 93 21 Changes in working capital: Increase (-) in trade and other receivables and prepayments -11 965 6 485 -11 332 Increase (-) in inventories -4 587 380 -7 669 Increase (+) in trade and other payables 10 5 246 2 312 9 223 Changes in provisions and government grants -2 242 -2 438 -2 954 Interest received 6 558 514 585 Interest paid 6 -93 -13 -203 Income tax paid -23 -36 -129 Net cash flows used in operating activities -16 582 -1 749 -49 546 Investing activities Purchase of property, plant and equipment -1 242 0 -2 142 Net cash flows used in investing activities -1 242 0 -2 142 Financing activities Proceeds from issue of ordinary shares 12 804 0 137 803 Proceeds from exercise of share options 193 0 3 397 Transaction costs on issue of shares -1 093 0 -7 530 Payment of lease liabilities -318 -231 -1 355	Q4 2020	FY 2021	FY 2020
			-50 952
			1 842
			10 290
			-417
			3 672
			-473
			221
			-2 902
			-1 439
			1 655
			-4 718
			851
			-68
			-196
			-42 633
			-226
			-226
			50 000
			738
			-3 005
			-1 119
Net cash flows from/(used in) financing activities 11 586 -231 132 315			46 614
Net increase in cash and cash equivalents -6 239 -1 981 80 627			3 755
Effect of exchange rate changes on cash and cash equivalents -18 -174 -26			-9
Cash and cash equivalents at the start of the period 164 066 79 364 77 209			73 463
Cash and cash equivalents at the close of the period 157 810 77 209 157 810			77 209