TEKNA HOLDING ASA: FINANCIAL RESULTS FOR SECOND QUARTER AND HALF-YEAR 2022

18.8.2022 07:00:00 CEST | Tekna Holding ASA | Half yearly financial reports and audit reports / limited reviews

(Arendal, NORWAY / Sherbrooke QC, CANADA) Tekna Holding ASA (Tekna, OSE: TEKNA), the world-leading provider of advanced materials to industry, today announce the company's results for the second quarter and first six months of 2022.

Continued high demand for additive manufacturing materials

Total revenue in the first half of 2022 amounted to CAD 14.1 million (CAD 15.2 million) due to reduced activity for the sale of systems caused by the last two-years of travel restrictions.

The strong demand for the company's advanced materials continued in the second quarter and is reflected by a 21 percent growth in Advanced Materials revenue compared to the first quarter of 2022. The company also experienced another quarter with strong order intake in all segments, which amounted to CAD 17.7 million at the end of the first six months. In parallel, the total backlog reached a record high CAD 18.4 million at the end of the period.

"Advanced materials for additive manufacturing continue to be the backbone of our business, representing 72 percent of our revenue in the first half of this year. Order intake has also gone up 56 per cent in the first six months, amounting to CAD 15.8 million, along with our order backlog reaching a record high CAD 15.3 million. This is certainly an exciting time for our business," commented Luc Dionne, Chief Executive Officer of Tekna Holding.

Activity rebounding for Systems

The company's Systems business was negatively impacted by travel restrictions, which reduced the overall activity of current and prospective customers. However, this segment was showing clear signs of recovery at the end of the first half of 2022.

In July, Tekna signed contracts for the sales of two research scale plasma systems model TEK15 which enable the development of metallic or ceramic powders. The orders amount to a total value of CAD 1.45 million and will be delivered to customers in early 2023. The company's PlasmaSonic product line is also showing good potential with seven active opportunities.

Capacity increase for materials

Tekna has also advanced the program to increase its overall materials production capacity by 70 percent by the end of 2022. This work is well underway, and the targeted machine output for the second quarter was achieved. Additional trials and development work is ongoing to secure a continuous and robust process. This will likely affect machine output in the third quarter and Tekna is confident it will achieve the 70% year-end target. Work involves hardware and software enhancement on the machines and recruitment of additional skilled personnel for post-processing.

Additional quality certification

During the period, Tekna announced that its Advanced Materials division had achieved ISO 13485:2016 certification. This certification established that the processes used by Tekna to manufacture its commercial powders meet the highest global standards for medical products. It also successfully accredited its laboratory for ISO 17025:2017 which certifies the analytical services in the competence of testing and calibration. This certification paves the way for the upcoming Nadcap certification, which is highly valued in the aerospace industry.

The second quarter of 2022 was characterized by:

* Total revenues amounted to CAD 7.6 million, representing a 3% increase from Q2 2021
* Materials revenue amounted to CAD 5.6 million, representing a 12% increase from Q2 2021
* Total order backlog amounted to CAD 18.3 million, up from CAD 14.2 million in Q2 2021
* Adjusted EBITDA amounted to CAD -3.2 million compared to CAD -0.5 million in Q2 2021

"We see several megatrends which we think will drive double digit growth in segments that are highly relevant for Tekna. Shifting economic powers and deglobalization, climate change and environmental regulations, new developments in connectivity and communication, changes in demography and health care, and new ventures in space exploration and hypersonic speed travel are all trends that will create further demand for Tekna's technology and products," added Mr. Dionne.

Results presentation

Tekna will present its financial results for the second quarter today at 13:00 CEST. The results will be presented by Luc Dionne, CEO of Tekna Holding ASA, and the event will be made available via a live webcast. Click the following link to register and gain access to the webcast: https://www.tekna.com/investors/webcast-2022q2

Questions can be submitted via the webcast link during the live event. A recorded version of the webcast will be available shortly after the webcast has concluded.

The second quarter report and presentation material are attached to this notice and will be available on https://newsweb.oslobors.no/and on http://www.tekna.com at around 07:00 CEST on the reporting day.

Disclosure regulation

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.

Contacts

Arina van Oost, Investor Relations | VP Corporate Strategic Development & Innovation, Tekna, +1 438 885 6330, [email protected]

About Tekna Holding ASA

Tekna is a world-leading provider of advanced materials to industry, headquartered in Sherbrooke, Canada. Tekna produces high-purity metal powders for applications such as 3D printing in the aerospace, medical and automotive sectors, as well as optimized induction plasma systems for industrial research and production. With its unique, IP-protected plasma technology, the company is well positioned in the growing market for advanced nanomaterials within the electronics and batteries industries. Building on 30 years of delivering excellence, Tekna is a global player recognized for its quality products and its commitment to its large base of multinational blue-chip customers.

website: www.tekna.com

LinkedIn: https://www.linkedin.com/company/tekna-plasma/

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