Tekna Holding ASA

Interim / Quarterly Report • Feb 8, 2024

Q4 2023 Interim Financial Results

Luc Dionne, CEO Espen Schie, CFO February 8, 2024

InvestinTekna

Disclaimer

This presentation has been prepared by Tekna Holding ASA ("Tekna" or the "Company") solely for information purposes. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities.

Statements in this presentation that are not statements of historical or current fact constitute "forward-looking statements"within the meaning of the Norwegian securities laws. Such forward-looking statements involve known and unknown risks, uncertainties, and other unknown factors that could cause the actual results of Tekna Holding ASA ("Tekna" or the "Corporation") to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms "believes," "belief," "expects," "intends," "projects," "anticipates," "will," "should," or "plans" to be uncertain and forward-looking. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this management analysis of the financial situation and operating results.

Information in this presentation is provided as of the date of this presentation. Tekna does not undertake to update any information in this presentation, whether as a result of new information, future events or otherwise, except as required by law.

Tekna in brief Luc Dionne, CEO

Tekna is a world-leading provider of advanced materials and plasma systems

Established organization with world-wide reach

Tekna engages in four industries that are propelled by global megatrends

Megatrends driving double digit growth in all segments

Space exploration and hypersonic speed travel

Shifting economic powers and deglobalization

Climate change and environmental regulations

Connectivity and communication

Advanced materials

Systems

Demography and health care

R&D & PlasmaSonic wind tunnels

Additive Manufacturing

CAD 285m

Emerging industry for which Tekna has identified CAD 285m of PlasmaSonic prospects over the next 10 years

up to +30%

Materials sales CAGR 2022- 2030 as forecast by Grand View Research and Smartech

+10.4% MLCC CAGR 2023-30 as projected by Research & Market 2023 edition

+18%, +28%

Projected CAGR for demand for anode and silicon respectively in 2020-30 as forecast by IHS 2021

Developing business lines

Q4 2023 Highlights Luc Dionne, CEO

6

Q4 2023 in brief Record revenues, strong growth and profitability close to break-even

Revenues Q4 2023 CAD 11.4 million Q4 2022: 6.8m

EBITDA (adj) Q4 2023 CAD -0.3 million Q4 2022: -2.9m

Continued strong top-line development in Q4 2023

• Total revenue +66% compared to Q4 2022.
• Systems revenues +125%, driven by strong demand and consistent backlog
• Materials revenues +40% compared to Q4 2022, driven by demand and successful capacity expansion

EBITDA significantly improved from last year

• Continued revenue growth and improved contribution margin
• Clear effects of organizational efficiency and cost control measures

Order backlog 31.12.23 CAD 24.0 million Q4 2022: 25.0m

Order backlog on same level as Q4 2022

• Order intake in Q4 2023 CAD 11.2 million, up from 10.4 million in Q3
• Backlog supports continued revenue growth going into 2024

Tekna delivered steady growth in revenues and improved margins

-13.2 -12.8 -11.2 -8.7 -6.5 -3.9 -51% -48% -38% -26% -18% -10% +8.9 CADm

Sep 22 Dec 22 Mar 23 Jun 23 Sep 23 Dec 23

Top priority 2023: Build capacity to meet growing demand1 Status now: Mission accomplished. Further improvements underway

Delivered 2023 revenues CAD 40.9 million, 52% up from 2022

• Systems business contributed a strong 90% top line growth year-on-year on the back of PlasmaSonic and R&D scale plasma unit sales.
• Material revenues rose 36% YoY. Successful capacity upgrade and new atomizer commissioned increased availability, shortened delivery lead times, and boosted sales.
• Successful go-to-market strategy addressing largescale industrial manufacturing of mobile phones and smartwatch frames resulted in expanded market and increased revenues for smaller titanium particle sizes

¹ Business priority highlighted and commented on in Tekna's Q4 2022 presentation in February 2023

Top priority 2023: Chase operational excellence in pursuit of improved profitability and cash availability1. Status: Significantly improved bottom line

Delivered 2023 EBITDA (adj) at CAD -3.9 million, an 8.9 million improvement from 2022

• Focus on group wide organizational efficiency: Several cost saving initiatives and cost control measures implemented
• Increased productivity of plasma system manufacturing through design improvements and standardization
• Increased productivity of powder atomizer: machine output and uptime
• Successfully managing inflationary cost increases to secure and improve margins
• Successful extension to 2027 of Canadian government Strategic Innovation Fund and subsidies recovered

¹ Business priority highlighted and commented on in Tekna's Q4 2022 presentation in February 2023

EBITDA (CADm) and margin (%) (adj)

Trailing 12 months (TTM)

Tekna's systems technology is the result of decades of research and development. It matches the latest technological advances to meet both present and future needs

Enabling the development of novel materials around the world

Typical industries are energy and space exploration, and small-scale production of high value materials

Advancing hypersonic flight and orbital reentry vehicles

Typically sold to original equipment manufacturers and academic research centers, this configuration is used to simulate, measure and characterize behavior of spacecraft thermal protection materials

Continued strong growth in Systems orders; increased revenues and margin improvement

• Systems' order intake in Q4 was CAD 3.9 million with an order backlog at end of the year of CAD 9.4 million
• 12 plasma machine new orders received during 2023 at a total value of CAD 12.1 million, from industrial and academic customers in Europe, Asia and North America
• Four new orders came in during December. Notably, one order included our first sale of the new PlasmaSonic ICPT-15 system, a lab-scale, cost-effective model designed for materials testing and hypersonic program development
• Contribution margins for systems for the year are at 63%, continuing the good margin development over last year's 45%

From left in insert photo: Luc Dionne (CEO), Sophie Burgaud (VP Legal), Dag Teigland (Chair), Espen Schie (CFO) and Ann-Kari Amundsen Heier (Director)

Additive Materials order intake up 32% YoY and building-up 2024 order book

Continued high demand in the market

• Order intake of CAD 7.4 million, up 32% from Q4 2022 and on the same, strong level as the previous quarter, reflecting consistent demand for our products
• Order backlog further increasing and closing Q4 at CAD 14.6 million
• A new atomiser commissioned during Q4 on Tekna's main selling materials, and one more in the first half of 2024, keeping up with growing market
• Maintaining a strong opportunity pipeline building-up 2024 order book
• Increasing order intake and pipeline generated by the consumer electronics industry

Additive Materials order intake and backlog

	Delivery	Share of sales	In backlog
Spot orders	0-3 months	~50%	No
Call-off Orders (CoO)	3-12 months	~50%	Yes
Frame agreements	up to 5 years	Converts to CoO before sale	Only when converted to CoO

Spot orders account for approximately 50% of our sales. They originate from both small and large customers including industrial OEMs. Spot orders, typically received and delivered in the same period, do not appear in the backlog. We maintain close dialogue and extensive follow-up with these customers who have a need to secure their supply chain over time through frame agreements.

Call-off orders account for the other half of our sales. These orders result either from standard purchase orders with multiple deliveries, recorded in the backlog, or from frame agreements. Tekna has several long-term frame agreements with larger customers. The call-offs from frame agreements are booked as order intake and recorded in the backlog, while the frame agreement itself is not recorded.

Frame agreements provide good visibility for upcoming orders, combining a binding near-term forecast with a non-binding longer-term forecast.

For delivery of advanced materials for additive manufacturing Illustrative

Confirmed call-off orders reported as backlog

Volumes indicated in longterm frame agreements

Capacity expansion in the MLCC industry continues, with Tekna providing R&D and qualifying samples

• The MLCC industry continues to invest in R&D and production facilities, both to increase overall capacity and to relocate country of production
• Tekna focuses on the two industry leaders who have the most promising outcome in the near term as they mature their R&D efforts into highend MLCCs1
• One of these OEMs has introduced Tekna to its manufacturing division, signaling a possible intention to accelerate progress towards production of high-end MLCC. Samples will be shared in Q1 2024
• A tier-2 MLCC manufacturer with whom we have worked said it would for now concentrate its efforts in the low-end segment of the market as the demand continues to expand

Q4 2023 - Finance Espen Schie, CFO

Q4 YoY 66% strong growth, with record quarterly revenue

• Total revenues were CAD 11.4 million, a +66% increase over same period last year
  • Revenue FY23 at CAD 40.9 million, an increase by CAD 14.0 million or +52% over same period last year
• Materials revenue in Q4 2023 was CAD 6.6 million, a 40% increase from Q4 2022
• Systems revenue at CAD 4.8 million, a 125% increase year-over-year, reflecting strong execution of orders on hand
• Adjusted EBITDA¹ at CAD -0.3 million, improved year-overyear by CAD 2.6 million resulting from volume, margins and profitability initiatives
  • Adjusted EBITDA¹ FY23 at CAD -3.9 million, improved by 8.9 million year-over-year
  • Quarterly variations, with improvements over time
• Continued focus on profitability and cash improvement
  • CAD 10.1 million cash and CAD 5 million unused loan with Arendals Fossekompani ASA

Adjusted EBITDA improved CAD 2.6 million YoY from Q4 2022

Adjusted EBITDA - bridge

Q4 2023 vs Q4 2022 in CAD million

• +2.6 Systems revenue was a significant contributor above last year (+125%), together with strong margins
  • Materials revenue and margins were strongly positive to the EBITDA, over same quarter last year (+40%)
  • Other operating expenses include a CAD 0.1 million negative FX effectin Q4 2023
  • Adjusted EBITDA improved by CAD 2.6 million YoY to CAD -0.3 million
    • Adjusted EBITDA FY23 improved by CAD 8.9 million YoY to CAD -3.9 million
  • Maintaining cost control while scaling revenue and managing inflationary cost increases remains our focus
  • A bad debt provision (non-cash and non-recurring) of CAD 4 million has been excluded from Adj EBITDA in Q4 2023.

Concluding remarks Luc Dionne, CEO

Long-term outlook Positioned to thrive on exciting megatrends with accelerating demand

Unique IP protected technology, providing superior solutions in the market, and steady business

• Continued sale of systems for R&D and production of advanced materials not competing in Tekna's current material segments
• Growing demand for PlasmaSonic in hypersonic and space industry

Systems Additive materials

Reliable provider of high-quality materials for additive manufacturing

• Market expected to grow significantly over the next years
• Target to at least follow the industry growth and keep our market share
• Sticky business model with high barriers of entry and 80% recurring revenue

Microelectronics

Exponential growth in demand expected towards 2030. Tekna well placed and in dialogue with the major MLCC players

Market outlook; short to medium term

• Parts of strong pipeline already converted to CAD 9.4 million backlog putting us on a solid pace for 2024
• Re-energized global interest in developing, testing and manufacturing novel materials: Industrial and Academic
• Emergence of new industrial segments : Space tourism, Satellite Internet & Networks & Strategic Defense
• Need for better performing products enabled by novel materials is driving an increase in demand for Tekna's research scale plasma units
• Pipeline of potential PlasmaSonic orders for 2024 developing according to plan
• Strong pipeline delivered CAD 14.6 million in 2024 backlog
• Growing market with increasing number of OEMs now operating at an industrial scale
• Break-through in use of titanium powders in production for metal injection molding and binder jetting applications with potential for large volume manufacturing
• Increased factory output rate will continue to translate into increased sales throughout the year

Strong and consistent top line growth and bottom-line improvement

• Revenue growth of 66% in Q4. 2023 revenues of CAD 40.9 million, up 52% from 2022.
• Adjusted EBITDA of CAD -0.3 million, a CAD 2.6 million improvement compared to Q4 2022. Full year adjusted EBITDA of CAD -3.9 million, a CAD 8.9 million improvement from last year.
• Order intake of CAD 11.2 million in the quarter, with several significant wins especially in Systems. Order backlog and available capacity supporting revenue growth in 2024
• Aiming for continued margin improvement in 2024, supported by increased revenue and efforts to further improve organizational productivity. Some variations foreseen from quarter to quarter
• Strong focus on cash management and cash flow :
  • High ambitions for improved cash conversion from smaller and larger powder fractions
  • After capex intensive years, capex will be gradually eased for a period

Consolidated financial statements	24
Income statement	25
Other comprehensive income	25
Balance sheet	26
Equity	27
Cash flow	28

Notes to the Consolidated Financial Statements 29

Note 1 Confirmation of financial framework Note 2 Key accounting policies Note 3 Revenue from contracts with customers Note 4 Adjustments in Alternative Performance Measures (APM) Note 5 Available liquidity

Alternative Performance Measures 31

Appendix Q4 Financial Statements

2

4

Amounts in CAD 1000	Note	FY2023	2023 Q4	FY 2022	2022 Q4
Revenues	3	40 888	11 390	26 889	6 843
Other income		991	930	767	357
Materials and consumables used		22 658	6 504	17 540	4 876
Employee benefit expenses		17 143	4 320	16 009	4 198
Other operating expenses		10 052	5 894	10 835	2 443
EBITDA		-7 973	-4 398	-16 727	-4 317
Depreciation and amortisation		4 222	1 062	3 978	1 065
Net operating income/(loss)		-12 195	-5 460	-20 706	-5 382
Share of net income (loss) from associated companies and joint ventures		-608 -	702	-1 510	-437
Finance income		233	257	144	709
Finance costs		777	47	332	-54
Profit/(loss) before income tax		-13 347	-4 548	-22 404	-5 057
Income tax expense		74	-26	114	-
Profit/(loss) for the period		-13 420	-4 522	-22 517	-5 057
Attributable to equity holders of the company		-
Attributable to non-controlling interests		-12 840 -580	-4 335 -187	-21 688 -829	-4 814 -242
		-
Basic earnings per share		-0.10	-0.03	-0.17	-0.04
Diluted earnings per share		-0.10	-0.03	-0.17	-0.04

CONSOLIDATED STATEMENT OF INCOME CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

Amounts in CAD 1000	Note	FY2023	2023 Q4	FY 2022	2022 Q4
Items that may be reclassified to statement of income
Exchange differences on translation of foreign operations		-49	-209	-178	-636
Items that may be reclassified to statement of income		-49	-209	-178	-636
Items that will not be reclassified to statement of income
Exchange differences on translation of foreign operations		-	-	-	-
Items that will not be reclassified to statement of income		-	-	-	-
Other comprehensive income/(loss) for the period, net of tax		-49	-209	-178	-636
Total comprehensive income/(loss) for the period		-13 469	-4 730	-22 696	-5 693
Attributable to equity holders of the company		-12 887	-4 536	-21 876	-5 448
Attributable to non-controlling interests		-582	-194	-820	-245

Consolidated revenues for the Tekna Group in Q4 2023 were CAD 11.4 million, an increase of 66% over the same quarter last year (CAD 6.8 million). Revenues for 2023 have increased by CAD 14.0 million and 52 % compared to last year.

Revenues for Systems, Spare parts and Other increased by 125% compared to Q4 2022. Revenues for Materials increased by 40% compared to the same period last year.

Contribution margin in Q4 2023 was CAD 4.9 million corresponding to 43 percent of revenues. In the same period last year, the contribution margin was 29 percent. The increased margins are a result of higher revenues in the Systems business and higher margins in Materials. Materials include a non-recurring expense of 372 thousand in Q4-23 due to inventory adjustment at yearend.

Loss for Q4 2023 was CAD 4.5 million, an improvement of CAD 0.5 million over the same period last year. Other operating expenses includes a bad debt provision of CAD 4.06 million in Q4-23, for receivables towards its joint venture.

CONSOLIDATED BALANCE SHEET

Amounts in CAD 1000	31.12.2023	31.12.2022
Non-current assets
Property, plant and equipment	22 450	19 240
Intangible assets	7 785	8 537
Associated companies and joint ventures	0	579
Non-current receivables	5 465	5 339
Deferred tax assets	-	-
Total non-current assets	35 700	33 696
Current assets
Inventories	19 050	20 592
Contract assets	3 905	167
Trade and other receivables	8 289	7 880
Cash and cash equivalents	10 148	11 364
Total current assets	41 393	40 003
Total assets	77 093	73 699

Equity ratio at the end of December 2023 was 51.8 percent compared to 72.5 percent at the end of 2022.

Borrowings at the end of December 2023 was CAD 24.6 million, including CAD 21 million with accrued interest owed to Arendals Fossekompani ASA.

Total cash and cash equivalents at the end of December 2023 was CAD 10.1 million versus CAD 11.3 million at the same time last year (December 31, 2022)

Amounts in CAD 1000	31.12.2023	31.12.2022
Equity
Share capital and share premium	494 956	494 956
Other reserves	-453 822	-440 934
Capital and reserves attributable to holders of the company	41 134	54 022
Non-controlling interests	-1 190	-609
Total equity	39 943	53 413
Non-current liabilities
Borrowings	24 662	4 119
Lease liabilities	773	1 161
Deferred tax liabilities	-	-
Total non-current liabilities	25 435	5 280
Current liabilities
Bank loan	-0	1 197
Lease liabilities	595	459
Trade and other payables	4 875	7 852
Provision for warranties	130	130
Contract liabilities	3 075	2 647
Other current liabilities	2 638	2 189
Borrowings short-term portion	402	532
Total current liabilities	11 715	15 006
Total liabilities and equity	77 093	73 699

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Attributable to equity holders of the Company
Amounts in CAD 1000	Share capital and share premium	Other reserves	Total	Non controlling interests	Total equity
Balance at 1 January 2022	494 956	-419 058	75 899	211	76 109
Profit/(loss) for the period	-	-21 688	-21 688	-829	-22 517
Other comprehensive income/(loss)	-	-187	-187	9	-178
Balance at 31 December 2022	494 956	-440 934	54 022	-609	53 413

	Attributable to equity holders of the Company
Amounts in CAD 1000	Share capital and share premium	Other reserves	Total	Non controlling interests	Total equity
Balance at 1 January 2023	494 956	-440 934	54 022	-609	53 413
Profit/(loss) for the period	-	-12 840	-12 840	-580	-13 420
Other comprehensive income/(loss)	-	-47	-47	-2	-49
Balance at 31 December 2023	494 956	-453 822	41 134	-1 190	39 943

CONSOLIDATED STATEMENT OF CASH FLOWS

Amounts in CAD 1000	FY2023	2023 Q4	FY 2022	2022 Q4
Cash flow from operating activities
Net profit/(loss)	-13 420	-4 522	-22 517	-5 057
Depreciation, amortization and impairment	4 222	1 062	3 978	1 065
Interest accretion on LT debt	345	88	290	57
Discounted value of long-term loan	-1 234	-1 234	-640	-241
(Gain)/Loss from sales of assets	9	9	-
Share of results from associated companies and joint ventures	608	-702	1 510	437
Total after adjustments to profit before income tax	-9 470	-5 299	-17 379	-3 739
Change in Inventories	1 542	963	-6 177	-1 482
Change in other assets	-4 273	-463	-1 070	381
Change in other liabilities	-2 101	2 636	4 699	3 650
Total after adjustments to net assets	-14 302	-2 162	-19 927	-1 190
Net cash from operating activities	-14 302	-2 162	-19 927	-1 190
Cash flow from investing activities
Proceeds from the sales of PPE	-	-	-
Purchase of PPE and intangible assets	-6 689	-1 009	-5 965	-1 747
Other investing activities	-	-	-816	-51
Purchase of shares in subsidiaries	-	-	-
Net cash flow from investing activities	-6 689	-1 009	-6 781	-1 798

Amounts in CAD 1000	FY2023	2023 Q4	FY 2022	2022 Q4
Cash flow from financing activities
Proceeds from issue of shares	-	-	-
Proceeds from issue of shares in THC	-	-	-42	-
Increase (decrease) of bank loan	-1 197	0	-2 536	728
New loan	22 484	1 681	3 317	847
Repayment of loan	-839	-206	-263	-64
Repayment of lease liabilities	-596	-168	-874	-208
Net cash flow from financing activities	19 853	1 308	-398	1 303
Net increase in cash and cash equivalents	-1 139	-1 864	-27 105	-1 685
Cash and cash equivalents at the beginning of the period	11 364	12 192	38 649	13 918
Effects of exchange rate changes on cash and cash equivalents	-77	-180	-180	-870
Cash and cash equivalents at end of the period	10 148	10 148	11 364	11 364

Net cash flow from operating activities was negative CAD 2.2 million in Q4 2023, including an increase of CAD 1.7 million of trade receivables and an increase of CAD 1.6 million in payables. Corresponding cash flow in Q4 2022 was negative CAD 1.2 million.

Net cash flow from investing activities was negative CAD 1.0 million in Q4 2023, mainly due to purchase of property, plant and equipment, compared with negative CAD 1.8 million in the same period last year.

Net cash flow from financing activities was positive CAD 1.3 million in Q4 2023, of which an increase of CAD 1.7 million in new financing and a decrease of CAD 0.4 million in repayment of loan and lease liabilities. In Q4 2022, the comparable cash flow was negative CAD 1.6 million.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Note 1 | Confirmation of financial framework

The financial statements for the quarter have been prepared in accordance with IAS 34 Interim Financial Reporting. The report does not include all the information required in full annual financial statements and should be read in conjunction with the consolidated financial statements for 2022.

Note 2 | Key accounting policies

The accounting policies for 2023 are described in the Annual Report for 2022. The financial statements have been prepared in accordance with EU-approved IFRS and associated interpretations, as well as the additional Norwegian disclosure requirements pursuant to the Norwegian Accounting Act and stock exchange regulations and rules, applicable as at 31 December 2022. The same policies have been applied in the preparation of the interim financial statements for 2023.

The figures are presented in CAD rounded to the nearest thousand. As a result of rounding adjustments, amounts and percentages may not add up to the total.

Note 3 | Revenue from contracts with customers

Accounting principles and information related to external customers are described in note 1.

Note 4 | Adjustments in Alternative Performance Measures (APM)

A bad debt provision of CAD 4.06 million has been booked in Q4-23 towards its joint venture. This item is presented in other operating expenses and excluded from Adjusted EBITDA.

Note 5 | Available liquidity

As of 31st December 2023, Tekna had available and undrawn CAD 5 million loan with Arendals Fossekompani ASA.

Disaggregation of revenue from contracts with customers

FY 2023	Systems &
Amounts in CAD 1000	Equipment		Materials Spare parts	Other	Total
Revenue recognized at a point in time	-	25 692	1 031	489	27 212
Revenue recognized over time	13 677	-	-	-	13 677
Revenue from external customers	13 677	25 692	1 031	489	40 888
Contribution margin	8 572	8 493	675	489	18 230
Contribution margin %	62.7%	33.1%	65.5%	100.0%	44.6%
Revenue from external customers specified pr geographical area:
North America	8 914	10 118	516	244	19 792
Europe	2 599	11 873	515	245	15 233
Asia	2 164	3 700	-	-	5 864
Total	13 677	25 692	1031	489	40 888

2023 Q4	Systems &
Amounts in CAD 1000	Equipment		Materials Spare parts	Other	Total
Revenue recognized at a point in time	-	6 571	180	129	6 880
Revenue recognized over time	4 510	-	-	-	4 510
Revenue from external customers	4 510	6 571	180	129	11 390
Contribution margin	2 706	1 943	108	129	4 886
Contribution margin %	60.0%	29.6%	60.0%	100.0%	42.9%
Revenue from external customers specified pr geographical area:
Americas	2 453	2 351	90	64	4 958
Europe	1 207	2 605	90	64	3 967
Asia	850	1 616	-	-	2 465
Total	4 510	6 571	180	129	11 390

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

Disaggregation of revenue from contracts with customers (continued)

FY 2022	Systems &		Materials Spare parts	Other	Total
Amounts in CAD 1000	Equipment
Revenue recognized at a point in time	-	18 909	1 521	222	20 652
Revenue recognized over time	6 238	-	-	-	6 238
Revenue from external customers	6 238	18 909	1 521	222	26 889
Contribution margin	2 794	5 677	657	222	9 350
Contribution margin %	44.8%	30.0%	43.2%	100.0%	34.8%
Revenue from external customers specified pr geographical area:
North America	1 608	7 204	760	111	9 684
Europe	-	9 827	760	111	10 698
Asia	4 629	1 878	-	-	6 507
Total	6 238	18 909	1521	222	26 889

2022 Q4	Systems &
Amounts in CAD 1000	Equipment		Materials Spare parts	Other	Total
Revenue recognized at a point in time	-	4 705	411	56	5 173
Revenue recognized over time	1 670	-	-	-	1 670
Revenue from external customers	1 670	4 705	411	56	6 843
Contribution margin	1 032	624	254	56	1 967
Contribution margin %	61.8%	13.3%	61.8%	100.0%	28.7%
Revenue from external customers specified pr geographical area:
North America	1 019	1 563	206	28	2 816
Europe	-	2 641	206	28	2 875
Asia	651	501	-	-	1 152
Total	1 670	4 705	411	56	6 843

DEFINITIONS Alternative Performance Measures

Tekna presents alternative performance measures as a supplement to measures regulated by IFRS. The Group considers these measures to be an important supplemental measure for investors to understand the Groups' activities. They are meant to provide an enhanced insight into the operations, financing, and future prospects of the company.

These measures are calculated in a consistent and transparent manner and are intended to provide enhanced comparability of the performance from period to period. The definitions of these measures are as follows:

• Backlog: Sales order intake awaiting completion or awaiting call off by customer (release) in case of blanket orders.
• Contribution Margin: Is defined as revenues less direct variable costs such as direct labour, raw material, electricity, gas consumption, commissions, freight, customs and brokerage fees, laboratory supplies and packaging. The Contribution Margin is used to evaluate performance of production before any allocation of fixed manufacturing costs.
• Contribution Margin %: is defined as the Contribution Margin divided by revenues in the period.
• EBITDA: Is defined as the profit/(loss) for the period before income tax expense, finance costs, finance income, share of net income (loss) from associated companies and joint ventures, depreciation, and amortization.
• EBITDA Margin: Is defined as EBITDA as a percentage of revenues.
• Adjusted EBITDA: Is defined as the profit/(loss) for the period before income tax expense, finance costs, finance income, share of net income (loss) from associated companies and joint ventures, depreciation, and amortization adjusted for certain special operating items affecting comparability. These special operating items include listing costs, adjustments for expenses related to cloud-based software previously recorded in the balance sheet (retrospective implementation accounting for cloud-based services for the years 2021, 2020 and 2019) and litigation fees. 31
• Adjusted EBITDA Margin: Is defined as Adjusted EBITDA as a percentage of revenues.
• EBIT: Is defined as the profit/(loss) for the period before income tax expense, finance costs, finance income, share of net income (loss) from associated companies and joint ventures.
• EBIT Margin: Is defined as EBIT as a percentage of revenues.
• Adjusted EBIT: Is defined as the profit/(loss) for the period before income tax expense, finance costs, finance income, share of net income (loss) from associated companies and joint ventures adjusted for certain special operating items affecting comparability. These special operating items include listing costs, adjustments for expenses related to cloudbased software previously recorded in the balance sheet (retrospective implementation accounting for cloud-based services for the years 2021, 2020 and 2019), and litigation fees.
• Adjusted EBIT Margin: Is defined as Adjusted EBIT as a percentage of revenues. Adjusted EBIT Margin is a non-IFRS financial measure that the Group considers to be an APM, and this measure should not be viewed as a substitute for any IFRS financial measure.
• Long Term Debt/Equity Ratio: Is defined as total non-current liabilities divided by total equity. Long Term Debt/Equity Ratio is a non-IFRS financial measure that the Group considers to be an APM, and this measure should not be viewed as a substitute for any IFRS financial measure.

Please see the Annual Report for a further detailed description of the Group's alternative performance measures.

Alternative Performance Measures

(continued)

	FY 2023	2023 Q4	FY 2022	2022 Q4
Amounts in CAD thousands	(Unaudited)	(Unaudited)	(Audited)	(Unaudited)
Revenues	40 888	11 390	26 889	6 843
Materials and consumables used	22 658	6 504	17 540	4 876
(b) Contribution margin	18 230	4 886	9 350	1 967
(c) Revenues	40 888	11 390	26 889	6 843
Contribution margin % (b/c)	44.59 %	42.89 %	34.77 %	28.74 %

Amounts in CAD thousands	FY 2023	2023 Q4	FY 2022	2022 Q4
	(Unaudited)	(Unaudited)	(Audited)	(Unaudited)
Net profit/loss	-13 420	-4 522	-22 517	-5 057
Income tax expense (income)	-74	26	-114	-
Finance costs	777	47	332	-54
Finance income	-233	-257	-144	-709
Share of net income (loss) from associated companies and joint ventures	608	-702	1 510	437
Depreciation and amortization	4 222	1 062	3 978	1 065
(a) EBITDA	-7 973	-4 398	-16 727	-4 317
Legal and listing cost	-	-	3 901	1 378
Provision for bad debts on accounts receivable from the joint venture	4 060	4 060	-	-
(b) Adjusted EBITDA	-3 913	-337	-12 827	-2 940
(c) Revenues	40 888	11 390	26 889	6 843
EBITDA margin (a/c)	-19.50 %	-38.61 %	-62.21 %	-63.09 %
Adjusted EBITDA margin (b/c)	-9.57 %	-2.96 %	-47.70 %	-42.96 %

Amounts in CAD thousands	FY 2023	2023 Q4	FY 2022	2022 Q4
	(Unaudited)	(Unaudited)	(Audited)	(Unaudited)
Net profit/loss	-13 420	-4 522	-22 517	-5 057
Income tax expense (income)	-74	26	-114	-
Finance cost	777	47	332	-54
Finance Income	-233	-257	-144	-709
Share of net income (loss) from associated companies and joint ventures	608	-702	1 510	437
(a) EBIT	-12 195	-5 460	-20 706	-5 382
Legal and listing cost	-	-	3 901	1 378
Provision for bad debts on accounts receivable from the joint venture	4 060	4 060	-	-
(b) Adjusted EBIT	-8 135	-1 400	-16 805	-4 004
(c) Revenues	40 888	11 390	26 889	6 843
EBIT margin (a/c)	-29.82 %	-47.94 %	-77.00 %	-78.65 %
Adjusted EBIT margin (b/c)	-19.89 %	-12.29 %	-62.50 %	-58.52 %
Amounts in CAD thousands	FY 2023	31.12.2023	31.12.2022	31.12.2022
	(Unaudited)	(Unaudited)	(Audited)	(Audited)
(a) Total non-current liabilities	25 435	25 435	5 280	5 280
(b) Total equity	39 943	39 943	53 413	53 413
Long Term Debt/Equity Ratio (a/b)	0.64	0.64	0.10	0.10

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