Polight ASA

Investor Presentation • Apr 30, 2025

First quarter 2025 Earnings presentation

30 April 2025

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.

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.

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This Presentation speaks as of 30 April 2025. 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

Presenting

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.

Joakim Hines Bredahl

Chief Financial Officer

Mr Bredahl's career started in entrepreneurship, followed by an eight-year stint at Verdane Capital Advisors and nine years in Nordea in different customer-facing roles. Joakim Bredahl has a BA (Hons) in Finance and Marketing from Strathclyde Business School.

Key events in the quarter

• Existing machine vision/barcode customer launched 5 new products and placed a purchase order worth approximately NOK 1,000,000 (announced 24 March).
• TWedge® purchase orders from consumer OEMs, worth approximately NOK 1,300,000, were received during the quarter. The largest was announced 13 February.
• Transcend Vivoscope placed an NRE purchase order, worth EUR 32,000, in connection with a revision of the Mini2p solution.
• AR/MR activities continued to develop positively.
• A project to develop lead-free TLens® was launched. Samples will be available by end of 2025.
• Participated at CES 2025 in Las Vegas, 7–10 January, and SPIE AR|VR|MR 2025 in San Francisco, 28–29 January.

Post quarter:

• poLight ASA - Enters Into Strategic Investment Agreement with Q Technology Group Backed by U.S. Top Tier Consumer Electronics OEM (see announcement from 15 April)

Investment Agreement with Q Technology Group

• Background
  • poLight being small, not yet profitable, having single sourced supply chain and not in high volume production may be seen as a risk to customer.
  • One specific customer, that poLight has worked with for a long time (a top tier U.S. consumer electronic OEM), triggered the investment agreement with Q Tech.
• The investment agreement
  • Issue 63,743,112 new shares to Q Tech at a subscription price of NOK 2.69 per share, raising total gross proceeds of NOK 171,468,971.28 (two years lock-up).
  • Represents approximately 32.97% of poLight's outstanding shares.
  • Q Tech is working to establish a dedicated TLens® assembly and test line in addition to poLight's existing manufacturing capabilities.
  • Q Tech will have the right to nominate two members to poLight's Board of Directors (BoD) as long as their ownership is over 25%.
  • The article of association will be updated with the above and also include that the BoD will minimum have two Independent Directors.
  • In the event a voluntary offer by a third party to acquire all the shares in poLight is recommended by the Independent Directors, Q Tech must either accept the offer or present a competing offer with at least the same cash price and other terms that are in aggregate no less favourable.

Investment Agreement with Q Tech, cont.

• The investment agreement, cont.
  • Private Placement is conditional upon the approval by the Company's annual general meeting.
  • General meeting to be held on 21 May 2025.
  • The Company's largest shareholders Investinor Direkte AS and LHH AS have entered into irrevocable undertakings to vote in favour of the Private Placement and the related resolutions at the general meeting.
  • Company may carry out a subsequent offering of up to 19,122,933 new shares to existing shareholders of poLight (the "Subsequent Offering")

"We strongly believe that poLight's unique technology will be important for several applications," said Q Tech Chairman Roy Ho. "With backing from a top tier U.S. consumer electronics customer, we are confident this alliance will bring cutting-edge solutions to the market, addressing key industry challenges."

"This partnership, combining our technology and expertise with Q Tech's experience in ramping up technology to high volume, is an important element in convincing major OEM´s to use our products and establish poLight as a trusted long-term supplier" said Dr. Øyvind Isaksen, CEO of poLight ASA.

Focused on growth

Consumer + Enterprise Advanced technology Global Player AR/MR Devices Wearables Smartphone, Webcam, Laptop Mixed Reality

Machine Vision

Instant focus

Small real estate

Constant field of view

Extremely low power consumption

Athermalization Thermal stability

• Founded in 2005 and listed on Oslo Stock Exchange (PLT)
• Norway headquarters with employees in Finland, France, UK, US, China, Taiwan, Japan, and the Philippines
• Growing worldwide patent and trademark portfolio

Barcode

TLens® : Smallest, Lowest Power and Fastest

From Gel > MEMS Wafer > TLens® > Camera module > OEM

Targeting Momentum Markets – Supporting Emerging Use Cases

Expanding research + in vivo applications

First quarter 2025 - Earnings presentation

Driver-based imaging growing

Customer Wins Drive Momentum

Operations and market review

First quarter 2025 - Earnings presentation

11

Consumer

• Augmented/mixed reality (AR/MR) focus, and some preparation work related to the laptop and webcam markets.
• Still early days for advanced AR-glasses, and new technology will have to be developed before these products will ship in large volumes.
• Smart-glasses and MR headsets are starting to gain good traction in the market especially smart-glasses.
• CES 2025 was a clear indication of this trend, and poLight is actively positioning its offering for these applications.
• Mainly use fixed-focus cameras, but camera specification trends, AI and future use cases may change this situation.
• Some of the consumer-related PoCs are maturing, project discussions approaching.
• Consumer market (e.g. smartphones) remains challenging, but there are certain applications and trends that may open up attractive business opportunities.
  • Laptop & webcam
• The announced investment agreement has triggered renewed interest in poLight products, - also related to smartphone.

Design-win	Design-in	Completed PoC	Ongoing PoC	Planning PoC
4 (4)	0 (0)	41 (40)	2 (4)	7 (7)

Status on consumer (including AR/MR consumer)

POC = Proof of Concept, including TWedge®

AR/MR – TLens® being tested by several OEM´s

• Low power consumption, insensitivity to gravity, temperature stabilisation, high speed and compactness stand out as key technical benefits.
• The ecosystem, the technology and the market in general still need to mature before mass deployment of consumer AR-glasses will occur.
• Smart-glasses (consumer) and MR headsets are starting to build some good traction, and more and more players are launching/planning to launch such products.
• poLight has built a strong foundation for becoming the preferred AF solution for such applications.
• Potential consumer-oriented opportunities are growing in number and becoming increasingly mature.

AR|MR Leading position in design wins

AR/MR – continuing high interest in TWedge®

• Building appetite by selling technical samples and further develop the technology platform.
• In the first quarter purchase orders for TWedge® worth approximately NOK 1,300,000 were received.
• The functionality and specification of a potential TWedge® wobulation product is starting to be understood.
• A potential TWedge® product not only improves the resolution but could also be a solution to other pain points.
• Since the previous quarter, the number of AR/MR PoCs increased to 16, up from 12 the quarter before.

Design-win	Design-in	Completed PoC	Ongoing PoC	Planning PoC
4 (4)	2 (2)	23 (21)	16 (12)	22 (22)

• A potential TWedge® product is included in the numbers given above for PoCs (nine) and planned PoCs (seven).

AR|MR Leading position in design wins

Status on AR/MR

POC = Proof of Concept. Overview include TWedge® C = Consumer

Barcode/Industrial

• It will take time to develop this market, but the number of design-wins is increasing step by step.
• In the first quarter, an existing customer announced that they had launched five new product variants using TLens®, two of which replace existing products using TLens®.
• poLight is, together with a lens partner, considering development of a standard machine vision solution.
  • The target is to have a joint release of this product this year and start shipping commercial units next year.
  • The first prototypes have already been sold.
  • This offering could potentially become an important contribution to this market segment.
• In the barcode/machine vision market, six companies represent 18 design-wins, of which 15 products are still shipping.

		Design-win Design-in Completed PoC Ongoing PoC Planning PoC
21 (16)	0 (0)	46 (42)	12 (13)	22 (14)

Status on Barcode/Industrial

Healthcare

• The company continues to support selected opportunities in the healthcare market segment.
• The partnership with the Kavli Institute at the Norwegian University of Science and Technology (NTNU) have led to three commercial companies are now offering turnkey Mini2P solution.
• During the quarter, one of our Mini2p customers ordered new samples, worth approximately NOK 400,000, in order to develop a new coating.
• This activity may lead to a new version of the Mini2p.
• poLight is also engaged in some commercial endoscope cases.
• In the short/medium term, however, do not foresee commercial breakthrough for this application shortly, due to use of low-resolution sensors - may change over time.
• Currently, the company has four design-wins (all related to Mini2P) and 16 ongoing PoCs, of which 12 relate to universities/research lab activities.

4 design design-win, 0 design win, design-in, 16 PoCs ongoing and 2 planning PoC

• There was no activity in this market segment during the first quarter.
• Going forward, this market segment may have a need for autofocus technology, and TLens® is one of the solutions being evaluated.
• The market is potentially significant but will most likely require a new revision of TLens®.
• To that end, development of a bigger-aperture TLens® has started, as explained in the "Product Development/Technology" section of the quartely report.

0 design-win, 0 design-in, 1 PoCs ongoing and 2 planning PoC

Promising pipeline

	Design-win	Design-in	Completed PoC	Ongoing PoC	Planning PoC
Consumer	4 (4)	0 (0)	41 (40)	2 (4)	7 (7)
Augmented/Mixed Reality	4 (4)	2 (2)	23 (21)	16 (12)	22 (22)
Industrial	21 (16)	0 (0)	46 (42)	12 (13)	22 (14)
Other (medical, automotive)	4 (4)	0 (0)	14 (13)	17 (15)	4 (6)
Number in ( ) represents last quarter	33 (28)	2 (2)	124 (116)	47 (44)	55 (49)

poLight PoC pipeline development

Financial Review

Key financials

(in NOK million)	Q1 2025	Q1 2024	FY 2024
Revenue	3.8	1.3	9.6
Change in obsolescence provision	-1.9	-2.3	-6.4
Cost of sales	-0.6	-0.1	-2.2
Research and development expenses	-9.0	-7.9	-32.3
Sales and marketing expenses	-5.0	-4.5	-16.3
Operational / supply chain expenses	-5.7	-5.6	-23.5
Administrative expenses	-6.8	0.3	-27.0
EBITDA	-25.2	-18.8	-98.1

• Revenue reflects sales of TLens® and materials to customer development projects of NOK 3.8 million
• EBITDA loss of NOK 25.2 million vs. loss of NOK 18.8 million in Q1 2024
  • Increased provision for inventory obsolescence of NOK 1.9 million
  • Reversed NICs on share options of NOK 0.5 million vs NOK 5.8 million in Q1 2024

Income statement Balance sheet summary

(in NOK million)	31.03.2025	31.03.2024	31.12.2024
Intangible assets	8.5	15.8	10.3
Inventories	59.9	67.8	62.4
Cash and cash equivalents	135.8	95.3	166.8
Total equity	207.3	181.4	231.9
Total current liabilities	15.7	14.0	22.2
Total equity and liabilities	232.8	197.2	264.0

• Cash position of NOK 135.8 million, compared with NOK 166.8 million at year-end 2024
• Inventory of NOK 59.9 million compared with NOK 62.4 million at 31.12.2024.
  • The inventory has decreased by NOK 2.5 million during the quarter due in part to the increased provision for obsolescence and cost of goods sold

Cash Flow

• Q1 cash used in operating activities was NOK 30.6 million
• Q1 net decrease in cash was in total NOK 31.0 million
• Q1 2024 net decrease in cash was NOK 19.6 million
• Increased working capital of NOK 11.2 million in the quarter
  • increased receivables of NOK 4.7 million,
  • decreased payables of NOK 2.7 million and
  • NOK 3.8 million used provision of legal expenses, made in Q4 2024, due to invoices received

Q1 2025 cash flow development

Outlook

First quarter 2025 - Earnings presentation

Outlook

• Given the market position poLight is in,
  • its efforts to establish a presence in multiple market segments,
  • and ongoing initiatives to improve and future-proof the offering and technology platform,
  • as well as continue to develop the organisation,

it is evident that the company has many opportunities for growth and that these are becoming more visible quarter by quarter.

• To be successful and capitalise on these opportunities, the single most important factor is the development of the AR/MR market.
• Although the company has other high-volume market opportunities, the current perception is that the technology fit for poLight´s technology is most obvious for the AR/MR market.
• The company is actively seeking a strategic position/relationship with major players in this space, both on the OEM side and the module integrator side.
• The announced investment agreement will be a great help to further develop the company

Q&A

NEXT EVENTS;

• Shareholder meeting 21 May
• Q2 presentation 14 August

Appendix

Board

Grethe Viksaas – Board Chair, independent

Grethe Viksaas has had a long career in 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 held 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, Crayon Group Holding ASA and CatalystONE Solutions Holding AS. She chairs the boards of Farmforce AS and Norkart AS. Ms Viksaas has a master's degree in computer science from the University of Oslo.

Marianne Bøe – Board member, independent

Marianne Bøe is Head of Investor Relations at IDEX Biometrics, working with investor communication and other administrative related tasks. Prior to this Ms Bøe has been a portfolio manager for more than 20 years and has broad and extensive experience from investing in globally listed companies, with a special focus on the technology sector. She holds a Master of Science degree in Economics and Business Administration from Norwegian School of Economics (NHH), and has participated in the Advanced Portfolio Management Program arranged by NFF (Norsk Finansanalytikerforening).

Svenn-Tore Larsen - Board member, independent

Svenn-Tore Larsen, former CEO of Nordic Semiconductor. Mr Larsen has broad international experience in the semiconductor business, previously as Director for the Nordic region for Xilinx Inc. He has also worked at Philips Semiconductor. Svenn-Tore Larsen has a degree in Electrical Engineering from the University of Strathclyde, UK.

Thomas Görling - Board member, independent

Thomas Görling holds a Master of Science from the Royal Institute of Technology in Stockholm and has a professional background from manageme nt positions within the European optical instrument and systems industry. He has wide-ranging experiences of venture capital investments and building successful technology companies from a previous long-term engagement as Senior Investment Director at Stiftelsen Industrifonden.

Jean-Christophe Eloy - Board member, independent

Jean-Christophe Eloy is the founder of Yole Group and its CEO and President. Yole Group is specialized in the semiconductor industry and providing marketing, technology and strategy consulting, reverse engineering and reverse costing in addition to corporate finance services. Mr Eloy has spent his entire career in the semiconductor industry, starting at CEA/LETI (France, semiconductor applied R&D organization) as marketing manager and then creating the semiconductor practice a t Ernst & Young. He is also a member of the board of Riber SA (France,) as well as Silmach (France). Mr Eloy is a graduate from EM Lyon Business School (France) and from engineering school INPG-ENSERG (France).

Management

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.

Joakim Hines Bredahl

Chief Financial Officer

Bredahl is a senior executive with background from various aspects of financing through entrepreneurship, venture capital (Verdane Capital Advisors) and banking (Nordea). He has a BA (Hons) in Finance and Marketing from Strathclyde Business School.

Pierre Craen

Chief Technology 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 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.

Statement of income

NOK 000	Note	Q1 2025	Q1 2024	FY 2024
Sale of goods		3 686	861	7 586
Rendering of services		163	419	2 038
Revenue		3 849	1 279	9 624
Change in obsolescence provision		-1 884	-2 277	-6 409
Cost of sales		-648	-90	-2 208
Gross profit		1 317	-1 088	1 007
Research and development expenses net of governmental
grants	6,9	-9 006	-7 899	-32 323
Sales and marketing expenses		-4 975	-4 535	-16 305
Operational / supply chain expenses		-5 656	-5 598	-23 542
Administrative expenses		-6 847	289	-26 950
Operating result before depreciation and amortisation
(EBITDA)		-25 167	-18 831	-98 113
Depreciation and amortisation	8	-2 682	-2 668	-10 489
Operating result (EBIT)		-27 849	-21 499	-108 602
Net financial items	7	1 491	1 031	6 956
Loss before tax		-26 358	-20 468	-101 646
Income tax expense		0	0	-139
Loss for the period		-26 358	-20 468	-101 785

Balance sheet

NOK 000	Note	Q1 2025	Q1 2024	31.12.2024
ASSETS
Property, plant and equipment		9 019	9 280	9 559
Intangible assets	8	8 487	15 762	10 306
Right-of-use assets		9 982	2 471	10 241
Total non-current assets		27 489	27 513	30 106
Inventories		59 901	67 790	62 431
Trade and other receivables	9	8 479	6 157	3 792
Prepayments		1 134	383	953
Cash and cash equivalents		135 757	95 330	166 752
Total current assets		205 271	169 659	233 927
Total assets		232 759	197 172	264 033
EQUITY AND LIABILITIES
Share capital		5 185	2 648	5 185
Share premium		222 373	194 503	222 373
Reserves		1 258	1 396	1 436
Retained earnings		-21 527	-17 161	2 889
Total equity		207 289	181 386	231 882
Interest-bearing loans and borrowings		355	474	369
Lease liabilities		9 439	1 322	9 615
Total non-current liabilities		9 794	1 796	9 984
Trade and other payables	10	11 417	11 619	14 116
Interest-bearing loans and borrowings		57	0	57
Current lease liabilities		678	1 372	663
Provisions	12	3 525	1 000	7 331
Total current liabilities		15 677	13 991	22 167
Total liabilities		25 470	15 787	32 151
Total equity and liabilities		232 759	197 172	264 033

Cash flow

NOK 000	Note	Q1 2025	Q1 2024	FY 2024
Operating activities
Profit / loss (-) before tax		-26 358	-20 468	-101 646
Adjustments for:
Depreciation of property, plant and equipment and right-of-use
assets		864	849	3 214
Amortisation of intangible assets	8	1 819	1 819	7 275
Net finance income		-1 491	-1 031	-6 956
Equity-settled share-based payments		1 943	2 198	10 008
Gain on disposal of property, plant and equipment		-28	0	0
Other non-cash items		1 025	933	-404
Changes in unrealised net foreign exchange rate
differences/fluctuations		8	-19	-162
Changes in working capital:
Increase (-) in trade and other receivables and prepayments		-4 304	2 279	3 905
Decrease (+) in inventories		2 530	2 299	7 658
Decrease (+) in trade and other payables	10	-2 700	-8 138	-5 641
Changes in provisions and government grants	12	-4 371	0	6 502
Interest received	7	707	150	7 431
Interest paid	7	-239	-54	-256
Income tax paid		0	0	-139
Net cash flows used in operating activities		-30 595	-19 183	-69 213
Investing activities
Proceeds from sale of property, plant and equipment		28	0	0
Purchase of property, plant and equipment		-67	-595	-2 402
Net cash flows used in investing activities		-40	-595	-2 402
Financing activities
Proceeds from issuance of ordinary shares		0	0	146 382
Transaction costs on issue of shares		0	0	-22 419
Payment of lease liabilities		-160	-283	-1 128
Proceeds from borrowings		0	474	474
Repayment of borrowings		-14	-5	-48
Net cash flows from/(used in) financing activities		-174	186	123 261
Net increase/decrease in cash and cash equivalents		-30 809	-19 592	51 647
Effect of exchange rate changes on cash and cash equivalents		-186	133	317
Cash and cash equivalents at the start of the period		166 752	114 788	114 788
Cash and cash equivalents at the close of the period		135 757	95 330	166 752