Tekna Holding ASA

Investor Presentation • Aug 17, 2023

Q2 2023 financial results

Luc Dionne, CEO Espen Schie, CFO August 17, 2023

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

3

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

Established organization with world-wide reach

Tekna is engaging in four industries that are propelled by global megatrends

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 300m

Emerging industry for which Tekna has identified CAD 300m 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

Q2 2023 Highlights Luc Dionne, CEO

6

Q2 2023 in brief Record revenues and profitability significantly improved

Revenues Q2 2023 CAD 11.0 million Q2 2022: 7.6m

EBITDA (adj) Q2 2023 CAD -0.6 million Q2 2022: -3.2m

All time high quarterly revenues continuing in Q2 2023

• Total revenue +45% compared to Q2 2022
• Systems revenues +66%, driven by strong demand and several successful wins
• Materials revenues +37%, also driven by demand and successful capacity expansion

EBITDA significantly improved, close to break-even

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

Order backlog 30.06.23 CAD 22.0 million Q2 2022: 18.4m

Order backlog increased 19% above Q2 2022

• Order intake in Q2 2023 CAD 6.5 million, less than in Q1, but within normal variations quarter by quarter.
• Backlog supports previous guidance of revenue growth for 2023 in both materials and systems

Strong pipeline of plasma machine prospects converted into firm orders, opportunities in PlasmaSonic are developing according to plan

Tekna plasma machines are enabling the development of novel materials around the world. Typical industries are energy and space exploration, medical implants production and small-scale production of high value materials

Market drivers Industrial and academic research are resuming after 3 years of covid-19. The need for better performing products enabled by novel materials is driving an increase in demand for Tekna's research scale plasma units.

• Systems' order backlog at end of June was CAD 11.0 million, confirming a re-energized industry
• Eight plasma machine orders announced to date this year1, at a total value of CAD 6.2 million, from industrial and academic customers in Europe, Asia and North America
• Gross margin has been sustained, as pricing for systems is adjusted to reflect cost inflation
• Prospects in the PlasmaSonic wind tunnel market segment is developing according to plan
• Providing knowledge and technology to continuously improve materials production system

¹ Including the two systems booked in July

Responding to increased demand with successful implementation of capacity and productivity improvement programs

Continued high demand in the market

• The order intake of CAD 5.0 million in line with previous quarters. Order backlog reduced following normal variations and increased capacity which reduces lead time
• The traction for additive materials expected to remain strong in 2023 with average selling price increasing 3% - 6% over 2022
• Further increased capacity throughout the year will translate to higher material availability, shorter delivery lead-times and increased sales in 2023

Capacity upgrade program

• Technical upgrades successfully implemented. Upgraded machines have proven reliable and factory is now operating at a 70% increased output rate
• New atomisers are scheduled to be commissioned by YE 2023 on Tekna's main selling materials, further increasing capacity

Tekna's state-of-the-art additive manufacturing powders allow for development and broad adoption of new large volume production methods

Case 1: Tekna collaborates with TriTech to enable revolutionizing binder jetting titanium part production

• Tekna's titanium powder is designed to achieve exceptional part quality and mechanical properties, and fulfills both aerospace AS9100 and medical ISO 13485 standards
• TriTech is the very first company using titanium powders in production for binder jetting applications which has the potential for large volume manufacturing

Case 2: First industrial size shipment of titanium powder for metal injection molding to customer in Asia

• Customer will use powder to manufacture components for personal electronic devices on a large scale
• Significant growth potential for metal injection molding in the consumer electronics industry, as it allows for the creation of smaller and more intricate components that can enhance performance and functionality of devices

Examples of MLCC devices and their applications

Courtesy: Kyocera Thousands of MLCCs in everyday devices Made with extremely fine material

MLCC opportunities developing in a market characterised by growing demand, supply concerns and miniaturization of electronic devices

Exponential growth in demand

Industry signaling exponential growth in devices powered by high-capacity multilayer ceramic capacitators (MLCCs), and market estimated to reach \$1bn by 2030

+10,4%

MLCC CAGR 2023-30 as projected by Market Watch, June 2023 edition

Few MLCC manufacturers

MLCC manufacturers developing the technical ability to produce MLLCs required for the smallest devices

Tekna is currently collaborating with the top six global leaders who control 100% of the high-end MLCC device market. Delivered new generation of samples of 80nm and 50nm in Q2 for further development and trials. No feedback dates confirmed by producers yet

Even fewer suppliers of material

List of existing suppliers of relevant powder is short

Tekna's position Favorable due to the company's technical capabilities and quality of the products

Industry concerns

Material availability Geopolitical and security issues Sourcing strategies

Q2 2023 - Finance Espen Schie, CFO

Q2 revenue and EBITDA improved YoY, reflecting favourable overall performance and market trends

• Materials revenue in Q2 2023 CAD 7.6 million, 37% increase from 2022.
• Systems revenue at CAD 3.4 million, 66% increase year-over-year, reflecting strong execution of orders on hand
• EBITDA at CAD -0.6 million, improved yearover-year resulting from volume, margins and profitability initiatives
• EBITDA YTD at CAD -1.8 million, improved by 4.2 million year-over-year
• Continued focus on profitability and cash improvement

EBITDA improved CAD 0.5 million from Q1 2023

EBITDA - bridge Q2 2023 vs Q1 2023 in CAD million

• Higher revenue from systems and materials contributed positively
• Improved margins within materials. Systems with lower margins than previous quarter
• Increased productivity and organizational efficiency
• Other operating expenses include a CAD 0.3 million negative FX effect in Q2
• Maintaining cost control while scaling revenue and managing inflationary cost increases remains our focus

Concluding remarks Luc Dionne, CEO

Market outlook

• 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 in additive manufacturing is driving an increase in demand for Tekna's research scale plasma units
• Parts of strong pipeline already converted to backlog carrying through 2023 and into 2024
• Pipeline of potential PlasmaSonic orders for 2024 developing according to plan
• 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

Q2 2023: Strong top line growth and bottom-line improvement

• Revenue growth of 45% and adjusted EBITDA improved by CAD 2.6 million compared to Q2 2022
• Target for the capacity increase program reached. Increasing sales, production and delivery of additive materials remains top priority
• Order intake of CAD 10.4 million in the quarter, with several significant wins especially in Systems
• Typical seasonality (summer vacations) in Tekna's main markets will affect the company's revenues in Q3 compared to Q2
• Order backlog supporting a significant revenue growth for 2023 compared to 2022
• Reiterating a substantial improvement of margins in 2023 compared to 2022, supported by increased production capacity and organizational productivity

Changing the world one particle at a time …

Consolidated financial statements	20
Income statement	21
Other comprehensive income	21
Balance sheet	22
Equity	23
Cash flow	24

Notes to the Consolidated Financial Statements 25

Note 1 Confirmation of financial framework Note 2 Key accounting policies Note 3 Revenue from contracts with customers Note 4 Events after balance sheet date

Alternative Performance Measures	27
Additional 2022 reporting available	29

Appendix Q2 Financial Statements

Amounts in CAD 1000	Note	2023 H1	2023 Q2	2022 H1	2022 Q2
Revenues	3	20,430	11,025	14,139	7,603
Other income		46	19	405	305
Materials and consumables used		10,555	5,716	8,550	4,861
Employee benefit expenses		8,676	4,197	7,962	4,076
Other operating expenses		3,088	1,778	5,504	2,848
EBITDA		-1,842	-648	-7,472	-3,877
Depreciation and amortisation		2,122	1,084	1,986	846
Net operating income/(loss)		-3,965	-1,732	-9,458	-4,723
Share of net income (loss) from associated companies and joint ventures		-742	-342	-762	-430
Finance income		-0	-173	-585	-292
Finance costs		326	223	247	134
Profit/(loss) before income tax		-5,034	-2,471	-11,051	-5,579
Income tax expense		-	-	-	-
Profit/(loss) for the period		-5,034	-2,471	-11,051	-5,579
Attributable to equity holders of the company		-4,804	-2,366	-10,701	-5,411
Attributable to non-controlling interests		-230	-105	-351	-168
Basic earnings per share		-0.04	-0.02	-0.09	-0.04
Diluted earnings per share		-0.04	-0.02	-0.09	-0.04

CONSOLIDATED STATEMENT OF INCOME CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

Amounts in CAD 1000	Note	2023 H1	2023 Q2	2022 H1	2022 Q2
Items that may be reclassified to statement of income
Exchange differences on translation of foreign operations		154	238	424	170
Items that may be reclassified to statement of income		154	238	424	170
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		154	238	424	170
Total comprehensive income/(loss) for the period		-4,880	-2,234	-10,627	-5,409
Attributable to equity holders of the company		-4,655	-2,137	-10,289	-5,240
Attributable to non-controlling interests		-225	-97	-339	-169

Consolidated revenues for the Tekna Group in Q2 2023 were CAD 11.0 million, an increase of 17 % compared to Q1 2023 (CAD 9.4 million) and 45% over the same quarter last year (CAD 7.6 million). Revenues for H1 2023 have increased by CAD 6.3 million and 44 % compared to the same period last year.

Revenues for Systems, Spare parts and Other increased by 65% compared to Q2 2022. Revenues for Materials increased by 37% compared to the same period last year.

Contribution margin in Q2 2023 was CAD 5.3 million corresponding to 48 percent of revenues. In the same period last year, the contribution margin was 36 percent. The increased margins are a result of higher margins in the Systems business, of which partly transitory high in H1 2023.

Loss for Q2 2023 was CAD 2.5 million, an improvement of CAD 3.1 million over the same period last year. Part of the improvement is due to CAD 0.7 million of non-recurring legal costs incurred in Q2 2022.

CONSOLIDATED BALANCE SHEET

Amounts in CAD 1000	30.06.2023	31.12.2022
Non-current assets
Property, plant and equipment	22,006	19,240
Intangible assets	8,184	8,537
Associated companies and joint ventures	-121	579
Non-current receivables	5,378	5,339
Deferred tax assets	-	-
Total non-current assets	35,446	33,696
Current assets
Inventories	20,205	20,592
Contract assets	463	167
Trade and other receivables	12,826	7,880
Cash and cash equivalents	5,424	11,364
Total current assets	38,918	40,003
Total assets	74,364	73,699

Equity ratio at the end of June 2023 was 65.3 percent compared to 72.5 percent at the end of 2022.

Total cash and cash equivalents at the end of June 2023 was CAD 5.4 million versus CAD 20.8 million at the same time last year (June 30, 2022)

Trade and other receivables at the end of June 2023 was CAD 12.8 million versus CAD 9.3 million at the same time last year. The increase by CAD 4.9 million since December 2022 was driven by higher invoices due to sales volume.

Trade and other payables at the end of June 2023 was CAD 4.5 million versus CAD 5.6 million at the same time last year. The reduction by CAD 3.4 million since December 2022 was driven by a reduction in overdue payables and less provision for inventory in transit.

Amounts in CAD 1000	30.06.2023	31.12.2022
Equity
Share capital and share premium	494,956	494,956
Other reserves	-445,590	-440,934
Capital and reserves attributable to holders of the company	49,366	54,022
Non-controlling interests	-833	-609
Total equity	48,533	53,413
Non-current liabilities
Borrowings	14,102	4,119
Lease liabilities	982	1,161
Deferred tax liabilities	-	-
Total non-current liabilities	15,084	5,280
Current liabilities
Bank loan	-0	1,197
Lease liabilities	552	459
Trade and other payables	4,461	7,852
Provision for warranties	130	130
Contract liabilities	2,495	2,647
Other current liabilities	2,612	2,189
Borrowings short-term portion	498	532
Total current liabilities	10,748	15,006
Total liabilities and equity	74,364	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	-	-2,437	-2,437	-125	-2,563
Other comprehensive income/(loss)	-	-81	-81	-3	-84
Balance at 31 March 2023	494,956	-443,453	51,502	-736	50,766

	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 31 March 2023	494,956	-443,453	51,502	-736	50,766
Profit/(loss) for the period	-	-2,366	-2,366	-105	-2,471
Other comprehensive income/(loss)	-	230	230	8	238
Balance at 30 June 2023	494,956	-445,589	49,366	-833	48,533

	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	-	-4,804	-4,804	-230	-5,034
Other comprehensive income/(loss)	-	149	149	5	154
Balance at 30 June 2023	494,956	-445,589	49,366	-833	48,533

CONSOLIDATED STATEMENT OF CASH FLOWS

Amounts in CAD 1000	2023 H1	2023 Q2	2022 H1	2022 Q2
Cash flow from operating activities
Net profit/(loss)	-5,034	-2,471	-11,051	-5,579
Depreciation, amortization and impairment	2,122	1,084	1,986	846
Variation in deferred taxes	-	-
Interest accretion on LT debt	172	86	150	81
Discounted value of long-term loan	-	-	-399	-152
FX variation on long-term loan	-	-
(Gain)/Loss from sales of assets	-	-
Share of results from associated companies and joint ventures	742	342	762	430
Total after adjustments to profit before income tax	-1,997	-959	-8,552	-4,374
Change in Inventories	387	-498	-3,308	-913
Change in other assets	-5,280	-3,817	-3,534	-2,031
Change in other liabilities	-3,121	-1,475	830	-2,222
Total after adjustments to net assets	-10,011	-6,748	-14,564	-9,541
Net cash from operating activities	-10,011	-6,748	-14,564	-9,541
Cash flow from investing activities
Proceeds from the sales of PPE	-	-	-
Purchase of PPE and intangible assets	-4,535	-2,270	-2,891	-1,237
Other investing activities	-		-646	-646
Purchase of shares in subsidiaries	-	-	-
Net cash flow from investing activities	-4,535	-2,270	-3,537	-1,883

Amounts in CAD 1000	2023 H1	2023 Q2	2022 H1	2022 Q2
Cash flow from financing activities
Proceeds from issue of shares	-	-	-
Proceeds from issue of shares in THC	-	-	-42	-42
Increase (decrease) of bank loan	-1,197	-2,398	-2,003	-770
New loan	10,405	10,139	2,704	830
Repayment of loan	-425	-209	-136	-73
Repayment of lease liabilities	-289	-144	-531	-296
Net cash flow from financing activities	8,494	7,389	-8	-352
Net increase in cash and cash equivalents	-6,052	-1,629	-18,109	-11,776
Cash and cash equivalents at the beginning of the financial year Effects of exchange rate changes on cash and cash	11,364 112	6,823 230	38,649 258	32,404 169
equivalents Cash and cash equivalents at end of the period	5,424	5,424	20,798	20,798

Net cash flow from operating activities was negative CAD 6.7 million in Q2 2023, including an increase of CAD 3.4 million in the trade receivables and a reduction of CAD 1.5 million in liabilities. Corresponding cash flow in Q2 2022 was negative CAD 9.5 million.

Net cash flow from investing activities was negative CAD 2.3 million in Q2 2023, mainly due to purchase of property, plant and equipment, compared with negative CAD 1.9 million in the same period last year.

Net cash flow from financing activities was positive CAD 7.4 million in Q2 2023, of which an increase of CAD 10.1 million in new financing and a decrease of CAD 2.4 million in the bank loan. In Q2 2022, the comparable cash flow was negative CAD 0.4 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.

Disaggregation of revenue from contracts with customers

2023 Q2	Systems &
Amounts in CAD 1000	Equipment		Materials Spare parts	Other	Total
Revenue recognized at a point in time	-	7,530	140	115	7,785
Revenue recognized over time	3,240	-	-	-	3,240
Revenue from external customers	3,240	7,530	140	115	11,025
Contribution margin	2,085	3,018	90	115	5,308
Contribution margin %	64.4%	40.1%	64.4%	100.0%	48.2%
Revenue from external customers specified pr geographical area:
North America	2,371	3,277	70	58	5,776
Europe	250	3,324	70	57	3,701
Asia	619	929	-	-	1,548
Total	3,240	7,530	140	115	11,025

2023 H1	Systems &
Amounts in CAD 1000	Equipment		Materials Spare parts	Other	Total
Revenue recognized at a point in time	-	13,903	560	289	14,752
Revenue recognized over time	5,678	-	-	-	5,678
Revenue from external customers	5,678	13,903	560	289	20,430
Contribution margin	3,904	5,277	403	289	9,874
Contribution margin %	68.8%	38.0%	72.0%	100.0%	48.3%
Revenue from external customers specified pr geographical area:
North America	4,267	5,929	280	145	10,620
Europe	546	6,517	280	145	7,488
Asia	866	1,456	-	-	2,322
Total	5,678	13,903	560	289	20,430

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) Financial Statements

Disaggregation of revenue from contracts with customers (continued)

2022 Q2	Systems &		Materials Spare parts	Other	Total
Amounts in CAD 1000	Equipment
Revenue recognized at a point in time	-	5,489	504	71	6,063
Revenue recognized over time	1,540	-	0	-	1,540
Revenue from external customers	1,540	5,489	504	71	7,603
Contribution margin	389	2,155	127	71	2,742
Contribution margin %	25.3%	39.3%	25.3%	100.0%	36.1%
Revenue from external customers specified pr geographical area:
North America	0	2,066	252	35	2,353
Europe	-	2,939	252	35	3,226
Asia	1,540	483	-	-	2,024
Total	1,540	5,489	504	71	7,603

2022 H1	Systems &
Amounts in CAD 1000	Equipment		Materials Spare parts	Other	Total
Revenue recognized at a point in time	-	10,039	683	128	10,849
Revenue recognized over time	3,290	-	-	-	3,290
Revenue from external customers	3,290	10,039	683	128	14,139
Contribution margin	1,179	4,074	208	128	5,589
Contribution margin %	35.8%	40.6%	30.5%	100.0%	39.5%
Revenue from external customers specified pr geographical area:
North America	195	3,765	341	64	4,365
Europe	0	5,292	341	64	5,698
Asia	3,095	982	-	-	4,076
Total	3,290	10,039	683	128	14,139

Note 4 | Events after balance sheet date

In July 2023, Tekna received a second loan tranche of CAD 10 million from Arendals Fossekompani ASA, its majority shareholder, as part of the of a CAD 25 million term loan facility announced on April 11, 2023. A total of CAD 20 million has been received to date.

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.
• 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)

Amounts in CAD thousands	2023 H1	2023 Q2	2022 H1	2022 Q2
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Revenues	20,430	11,025	14,139	7,603
Materials and consumables used	10,555	5,716	8,550	4,861
(b) Contribution margin	9,875	5,308	5,589	2,742
(c) Revenues	20,430	11,025	14,139	7,603
Contribution margin % (b/c)	48.33%	48.15%	39.53%	36.06%

Amounts in CAD thousands	2023 H1 (Unaudited)	2023 Q2 (Unaudited)	2022 H1 (Unaudited)	2022 Q2 (Unaudited)
Net profit/loss	-5,034	-2,471	-11,051	-5,579
Income tax expense (income)	-	-	-	-
Finance costs	326	223	247	134
Finance income	0	173	585	292
Share of net income (loss) from associated companies and joint ventures	742	342	762	430
Depreciation and amortization	2,122	1,084	1,986	846
(a) EBITDA	-1,842	-648	-7,472	-3,877
Legal and listing cost	-	-	1,486	710
(b) Adjusted EBITDA	-1,842	-648	-5,986	-3,167
(c) Revenues	20,430	11,025	14,139	7,603
EBITDA margin (a/c)	-9.02%	-5.88%	-52.85%	-50.99%
Adjusted EBITDA margin (b/c)	-9.02%	-5.88%	-42.34%	-41.66%

Amounts in CAD thousands	2023 H1	2023 Q2	2022 H1	2022 Q2
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Net profit/loss	-5,034	-2,471	-11,051	-5,579
Income tax expense (income)	-	-	-	-
Finance cost	326	223	247	134
Finance Income	0	173	585	292
Share of net income (loss) from associated companies and joint ventures	742	342	762	430
(a) EBIT	-3,965	-1,732	-9,458	-4,723
Legal and listing cost	-	-	1,486	710
(b) Adjusted EBIT	-3,965	-1,732	-7,972	-4,013
(c) Revenues	20,430	11,025	14,139	7,603
EBIT margin (a/c)	-19.41%	-15.71%	-66.89%	-62.11%
Adjusted EBIT margin (b/c)	-19.41%	-15.71%	-56.38%	-52.78%

Amounts in CAD thousands	30.06.2023 (Unaudited)	30.06.2023 (Unaudited)	30.06.2022 (Unaudited)	30.06.2022 (Unaudited)
(a) Total non-current liabilities	15,084	15,084	5,432	5,432
(b) Total equity	48,533	48,533	65,481	65,481
Long Term Debt/Equity Ratio (a/b)	0.31	0.31	0.08	0.08

Additional 2022 reporting available on www.tekna.com/investors

Annual Report 2022

• Tekna's annual report containing the Board of Directors' report and consolidated and audited financial statements among other

GRI Report 2022

• Sustainability information provided in the structure of the GRI General Disclosures 2021. This also includes metrics from 2019-2022 per GRI definition.

Carbon Accounting Report 2022

• Quantitative and Qualitative information on the CO2 emissions of the Company

Human Rights and Transparency Act Report 2022

• Reporting on Supply Chain governance following the Norwegian Transparency Act

Corporate Governance Report 2022

• Reporting on the Company's Governance structure following the Norwegian Code of practice for Corporate Governance

EU taxonomy Progress Report 2022

• Progress report ahead of the EU taxonomy reporting requirement per 2023

TCFD Progress Report 2021

• Progress report on preparations following the structure of the Task Force on Climate-Related Financial Disclosures (TCFD). Keep an eye out for the update in 2023.

UN Global Compact CoP

• United Nations Global Compact communication on progress. This is an online reporting in the UN system due in June 2023

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