Tekna Holding ASA

Investor Presentation • Feb 9, 2023

Q4 2022 financial results

Luc Dionne, CEO Tekna Holding ASA February 9, 2022

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

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

Tekna is active in 4 segments driven by global megatrends

Space exploration and hypersonic speed travel

Shifting economic powers and deglobalization

Climate change and environmental regulations

communication

Demography and health care

CAD 220m

Emerging industry for which Tekna has identified CAD 220m of PlasmaSonic prospects over the next 10 years

up to +30%

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

+14% MLCC CAGR 2022-27 as projected by Research & Market 2021, 2022 editions

+18%, +28%

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

Current Revenue Generating Segments

Developing Segments

Customers for our additive materials business

Additive Manufacturing Material sales by Industry Sector

¹ Current and targeted customers

Our Plasma Systems segment

• Academic, government and industrial solutions
• CAD 8 15m annually
• Induction, DC and Arc plasma know-how
• Over 250 systems delivered worldwide
• In-house machine & peripheral supplier to Tekna powder manufacturing sites

Norway's Minister of Trade and Industry Jan Christian Vestre (right) visiting the Mechatronics Innovation Lab in Grimstad, Norway

R&D Systems in a nutshell … Orbital Space & Hypersonic Flight: PlasmaSonic Solutions

• Global leader with no integrated competitors
• Portfolio of comprehensive and advanced tools to reproduce, measure and characterize material behavior exposed to hypersonic flight and orbital space conditions
• Active sales opportunity pipeline CAD 45 75m

Corporate and ESG update

Espen Schie appointed Chief Financial Officer of Tekna

Schie brings long-term financial management experience. Comes from the role as Vice President of Finance & Controlling at Arendals Fossekompani ASA, Tekna's largest shareholder

Changes in management Annual and Sustainability Report

Tekna Holding will publish its Annual and Sustainability Report on 11 April 2023

Full-year and Q4 Highlights and financials

Full year 2022 in brief Building capacity to meet growing demand Chasing operational excellence in pursuit of improved profitability

Revenues 2022 CAD 26.9 million 2021: 26.8m

EBITDA 2022 (adjusted) CAD –12.8 million 2021: -4.6m

Order backlog 31.12.22 CAD 25.0 million 2021: 15.3m

Revenues in 2022 on same level as in 2021

• EBITDA negatively impacted by transitory lower systems margins, materials machine upgrade efforts, and overhead costs related to onboarding of staff in anticipation of the growth plan

Order backlog increased by 64%

• Reflecting growing demand for additive materials, significant wins and strong pipeline of systems projects

Important and immediate steps taken towards improving profitability and cash position

• Machine capacity expansion for additive materials well underway
• In addition, three powder systems coming online in 2023
• AFK and Tekna have agreed on the terms for a CAD 25 million loan facility
• Improving operational excellence through overhead cost reduction, Capex and organisation right-sizing and strategic focus on near term revenue opportunities

Q4 revenue and EBITDA improved YoY, reflecting favourable systems segment performance

• Materials revenue in Q4 2022 CAD 4.7 million, same level as in 2021 as anticipated in Q3 2022
• Systems revenue at CAD 2.1 million, 50% increase year-over-year, reflecting market rebound
• Adjusted EBITDA CAD -2.9 million improved year-over-year resulting from increase in systems revenues and margins
• Increased focus on profitability and cash improvement

Additive manufacturing industrialization drives significant materials demand, capacity constraints affected Q4 order intake

Order intake and backlog

Additive manufacturing | in CAD million

• The traction for additive materials remains strong in the market
• Tekna materials are instrumental to the industrialisation success of leading original equipment manufacturers (OEMs)
• Lower order intake in Q4 over the same period last year was expected due to longer delivery leadtimes caused by capacity constraints
• Increasing capacity will translate into higher material availability, shorter delivery lead-times and increased sales

Strong pipeline and major orders confirmed, including PlasmaSonic equipment from leading aerospace original equipment manufacturer

Market drivers

Tekna's PlasmaSonic solutions are key to advancing the development of thermal protection materials required for hypersonic flight and orbital re-entry vehicles Illustration: Screen shot from Tekna's Q3 presentation

In Q4 2022: CAD 9 million order confirmed for hypersonic wind tunnel testing facility

• Order in excess of CAD 9 million for a PlasmaSonic wind tunnel testing facility
• The equipment will be delivered in early 2024 and is a central piece to the customer's hypersonic wind tunnel ground testing infrastructure

In January 2023: Announced two more plasma system sales valued at CAD 1.57 million for delivery by end of 2023

• TEK15 system for government research center in Belgium, can by used for the development of spherical powder, nanomaterials and coatings
• TEK40 system for a private company in Asia for commercial R&D purposes. System will be used to develop and produce trial size samples of spherical refractory metal powders

Arendals Fossekompani (AFK) reiterates its support of Tekna

AFK and Tekna have agreed on the terms for a CAD 25 million loan facility

Loan agreement will be signed once current public funding institutions have given their consent

Key terms of the agreement

• 3 tranches (loans) released between Q1-2023 and Q1-2024: CAD 5m, 10m, and 10m respectively
• 3rd tranche subject to certain performance criteria
• Repayment for each loan on the date falling three (3) years from the drawdown of the relevant tranche
• Final terms to be disclosed upon finalization of loan agreement

Market and outlook

Materials market and industry attractiveness

Megatrends driving double digit growth in all segments

Space exploration and hypersonic speed travel

Shifting economic powers and deglobalization

Climate change and environmental regulations

communication

Demography and health care

CAD 220m

Emerging industry for which Tekna has identified CAD 220m of PlasmaSonic prospects over the next 10 years

up to +30%

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

Systems business rebounding. Strong pipeline of potential orders. Reinforcing sales team in US, which represents great potential, especially for PlasmaSonic

Fast growing market with OEMs now operating at an industrial scale. Tekna focuses on increasing capacity through improved machine performance and increasing machine installed base

+14% MLCC CAGR 2022-27 as projected by Research & Market 2021, 2022 editions

+18%, +28%

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

Qualifications with customers continuing. Have initiated discussions with MLCC partners to implement nickel-nano powder manufacturing in Asia

Tekna continues dialogue with strategic partners within energy storage. For the time being, Tekna will prioritize the significant opportunities in the above segments over energy storage

16

Top tier aerospace customers moving from technology validation to commercial volumes

Additive manufacturing powder machine capacity upgrade program

First machine qualified at 40% output increase

• Capacity improvement continued in Q4 with a first machine qualified at 40% output, increasing from 20% achieved in October
• Total Q4 output was marked by machine upgrade related downtime and slowdown during holiday season
• Development and upgrade work continues through Q1- 2023. Step-by-step implementation on machines is synchronized with customer qualification roll-out plan
• Targeting 70% increase in production run rate to be qualified by end of Q1 2023, expected to be reflected in output of Q2
• Full effect of output increase will be reflected in sales revenues when all machines are upgraded to the new level

Output increase target

Progressive upgrade & performance improvement roll-out on production machines

Q4-22 cumulated output reaching same level as Q4-21 despite machine downtimes resulting from ongoing capacity upgrade efforts

Microelectronics | Strategic development initiatives with customers continue

About our product qualification program Nickel nano powder

• Set-up of customer validation (pilot) line mostly completed, minimal investment is secured to finalize this phase of the program
• Since 2020, 4 customers (industry leaders) have received material samples from Tekna, starting a cycle of Tekna product to customer technology pairing
• Successful pairing should lead to first order of smaller batches, typically less than 100 kg, followed by a progressive ramp-up
• Industrial scale-up investment is postponed and will be synchronized with successful customer pairing

Feedback from most advanced customers

Prospect Korea

MLCC printing trials with Tekna Nickel nano 80nm continues to progress. Customer feedback was received during recent tour, product adjustments to be implemented accordingly with an increase in technical effort on the customer end

Prospect APAC

Good progress achieved on conducting trials with Tekna material samples. Customer feedback is expected in Q1 2023 during an inpresence meeting

Nickel nano material outlook will be revised following the next round of customer trials

Energy storage | Nano-silicon in the lithium-ion battery anode value chain

Status

• Implemented nano-silicon plasma machine
• Produced samples
• Tekna continues dialogue with strategic partners within energy storage
• For the time being Tekna will prioritize the significant opportunities within additive manufacturing and microelectronics over the potential within energy storage
• LG Chem joint development agreement progress continues

Global Lithium-ion battery growth driving the demand for silicon materials. Demand for silicon nano composite forecast to grow tenfold to \$10B by 2030

Source: IHS 2021

Concluding remarks

Building capacity to meet growing demand Chasing operational excellence in pursuit of improved profitability

• AFK reiterated its support of Tekna and together have agreed on the terms for a CAD 25 million loan facility
• Increasing sales, production and delivery of additive materials remains top priority
• Pursuing significant potential in microelectronics while carefully managing cashflow and resources
• Roadmap to profitability drawn up, emphasising operational excellence, right-sizing of organisation and strict prioritisation of R&D efforts towards additive materials and microelectronics
• Operating revenues and margins expected to increase during 2023, supported by strong systems and materials backlog

Changing the world one particle at a time …

Consolidated financial statements	23
Income statement	24
Other comprehensive income	24
Balance sheet	25
Equity	26
Cash flow	27

Notes to the Consolidated Financial Statements 28

Note 1 Confirmation of financial framework Note 2 Key accounting policies Note 3 Revenue from contracts with customers

Alternative Performance Measures 30

Appendix Q4 Financial Statements

Amounts in CAD 1000	Note	FY 2022	2022 Q4	FY 2021	2021 Q4
Revenues	3	26,889		6,843 26,810	5,982
Other income		767	357	486	200
Materials and consumables used		17,540		4,876 14,893	4,332
Employee benefit expenses		16,009		4,198 12,733	3,439
Other operating expenses		10,835	2,443	8,401	2,182
EBITDA		-16,727	-4,317	-8,731	-3,771
Depreciation and amortisation		3,978	1,065	3,742	1,520
Net operating income/(loss)		-20,706		-5,382 -12,473	-5,291
Share of net income (loss) form associated companies and joint ventures		-1,510	-437	-1,472	-421
Finance income
Finance costs		144 332	709 -54	400 656	-94 110
Profit/(loss) before income tax		-22,404		-5,057 -14,201	-5,915
Income tax expense		114	-	-114	-
Profit/(loss) for the period		-22,517		-5,057 -14,087	-5,915
Attributable to equity holders of the company		-21,688		-4,814 -13,601	-5,691
Attributable to non-controlling interests		-829	-242	-486	-224
Basic earnings per share		- 0.17	- 0.04	- 0.14	- 0.05
Diluted earnings per share		- 0.17	- 0.04	- 0.14	- 0.05

CONSOLIDATED STATEMENT OF INCOME CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME

Amounts in CAD 1000	Note	FY 2022	2022 Q4	FY 2021	2021 Q4
Items that may be reclassified to statement of income
Exchange differences on translation of foreign operations		-178	-636	6	6
Items that may be reclassified to statement of income		-178	-636	6	6
Items that will not be reclassified to statement of income
Exchange differences on translation of foreign operations		-	-	-6,207	-381
Items that will not be reclassified to statement of income		-	-	-6,207	-381
Other comprehensive income/(loss) for the period, net of tax		-178	-636	-6,201	-375
Total comprehensive income/(loss) for the period		-22,696		-5,693 -20,288	-6,290
Attributable to equity holders of the company		-21,876		-5,448 -19,802	-6,066
Attributable to non-controlling interests		-820	-245	-486	-224

Consolidated revenues for the Tekna Group in 2022 was CAD 26.9 million, compared to CAD 26.8 in 2021. Revenues for Systems reduced compared to last year but was compensated by an 8% increase in Materials sales.

Contribution margin in 2022 was CAD 9.5 million corresponding to 35 percent of revenues. In the last year, the contribution margin was 44 percent. The reduced margins is a result of an increase in cost of materials and transitory lower margins for Systems.

Adjusted earnings before interest, tax, depreciation, and amortisation (Adj. EBITDA) in 2022 was negative CAD 12.8 million, and was marked by a planned increase in costs in support of the company's growth strategy, materials machine upgrade efforts, its development programs in emerging segments and upfront investments in staff and R&D.

Loss for 2022 was CAD 22.5 million of which share of net loss from associated companies and joint ventures was negative CAD 1.5 million and net financial items was minus CAD 0.2 million.

CONSOLIDATED BALANCE SHEET

Amounts in CAD 1000	Note	31.12.2022	31.12.2021
Non-current assets
Property, plant and equipment		19,474	16,573
Intangible assets		8,537	9,217
Associated companies and joint ventures		579	1,231
Non-current receivables		5,270	5,598
Deferred tax assets		-	-
Total non-current assets		33,860	32,619
Current assets
Inventories		20,592	14,415
Contract assets		167	1,039
Trade and other receivables		9,430	5,680
Cash and cash equivalents		11,364	38,649
Total current assets		41,553	59,783
Total assets		75,413	92,402

Equity ratio at the end of December 2022 was 70.1 percent compared with 82.4 percent at the end of 2021.

Total cash and cash equivalents amounted to CAD 11.4 million at the end of December 2022 versus CAD 38.6 million at the same time last year.

Amounts in CAD 1000	Note	31.12.2022	31.12.2021
Equity
Share capital and share premium		494,956	494,956
Other reserves		-440,934	-419,058
Capital and reserves attributable to holders of the company		54,022	75,899
Non-controlling interests		-609	211
Total equity		53,413	76,109
Non-current liabilities
Borrowings		4,119	3,778
Lease liabilities		1,161	227
Deferred tax liabilities		-	-
Total non-current liabilities		5,280	4,005
Current liabilities
Bank loan		1,197	3,733
Lease liabilities		693	235
Trade and other payables		7,782	4,772
Contract liabilities		4,197	1,473
Other current liabilities		2,319	1,874
Borrowings short-term portion		532	200
Total current liabilities		16,720	12,288
Total liabilities and equity		75,413	92,402

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

		Attributable to equity holders of the Company
Amounts in CAD 1000	Note	Share capital and share premium	Other reserves	Total	Non controlling interests	Total equity

Balance at 1 January 2021		14 18,525 18,539		-	18,539
Profit/(loss) for the period mm	-	-14,087	-14,087	-472	-14,559
Other comprehensive income/(loss)	-		-6,201 -6,201	-	-6,201
Share capital increase Arendals Fossekompani	394,898	-417,295	-22,397	683	-21,714
Issue of ordinary shares for cash	100,044		100,044	-	100,044
Balance at 31 December 2021	494,956		-419,058 75,898		211 76,109

Balance at 1 January 2022	494,956	-419,058 75,898		211 76,109
Profit/(loss) for the period mm	-21,688	-21,688	-829	-22,517
Other comprehensive income/(loss)	-187	-187	9	-178
Adjustment	-	-	-	-
Balance at 31 December 2022	494,956	-440,934 54,022		-609 53,413

CONSOLIDATED STATEMENT OF CASH FLOWS

Amounts in CAD 1000	Note	FY 2022	2022 Q4	FY 2021	2021 Q4
Cash flow from operating activities
Net profit/(loss)		-22,517		-5,057 -14,087	-5,915
Depreciation, amortization and impairment		3,978	1,065	3,742	1,520
Variation in deferred taxes				-	-
Interest accretion on LT debt		290	57	258	67
Discounted value of long-term loan		-640	-241	-378	-215
FX variation on long-term loan				-515	-515
(Gain)/Loss from sales of assets				-10	-10
Share of results from associated companies and joint ventures		1,510	437	1,472	421
Total after adjustments to profit before income tax		-17,379	-3,739	-9,517	-4,648
Change in Inventories		-6,177	-1,482	-2,378	-1,265
Change in other assets		-2,551	-1,099	-2,773	954
Change in other liabilities		6,180	5,130	790	3,519
Total after adjustments to net assets		-19,927		-1,190 -13,878	-1,439
Net cash from operating activities		-19,927		-1,190 -13,878	-1,439
Cash flow from investing activities
Proceeds from the sales of PPE				28	-64
Purchase of PPE and intangible assets		-6,199	-1,981	-3,637	-1,474
Other investing activities		-816	-51	-1,296	44
Purchase of shares in subsidiaries		-		-23,480	0
Net cash flow from investing activities		-7,015		-2,032 -28,385	-1,493

Amounts in CAD 1000	Note	FY 2022	2022 Q4	FY 2021	2021 Q4
Cash flow from financing activities
Proceeds from issue of shares		-		100,044	-14
Proceeds from issue of shares in THC		-42	-	1,331	-
Increase (decrease) of bank loan		-2,536	728	3,100	2,881
New loan		3,551	847		17,898 -12,562
Repayment of loan		-263		-64 -37,535	14,072
Repayment of lease liabilities		-874	-208	-226	-170
Net cash flow from financing activities		-164	1,303	84,612	4,208
Net increase in cash and cash equivalents		-27,105	-1,919	42,348	1,275
Cash and cash equivalents at the beginning of the financial year		38,649	13,918	2,537	38,621
Effects of exchange rate changes on cash and cash equivalents		-180	-636	-6,237	-1,247
Cash and cash equivalents at end of the period		11,364	11,364	38,649	38,649

Net cash flow from operating activities was negative CAD 19.9 million in 2022, of which an increase in inventories was CAD 6.2 million. Corresponding cash flow in 2021 was negative CAD 13.9 million in the last year.

Net cash flow from investing activities was negative CAD 7.0 million in 2022, mainly due to purchase of property, plant and equipment, compared with negative CAD 28.4 million in the same period last year. The latter amount included CAD 23.5 million in purchase of shares in subsidiaries.

Net cash flow from financing activities was negative CAD 0.2 million in 2022. CAD 3.5 million in a new loan was largely balanced out by repayment of loan and reduced lease liabilities. In 2021, a CAD 100 million share issue and debt refinancing resulted in a CAD 80.4 million positive cash flow from financing.

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 2021.

Note 2 | Key accounting policies

The accounting policies for 2021 are described in the Annual Report for 2021. The financial statements have been prepared in accordance with EU-approved IFRSs 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 2021. The same policies have been applied in the preparation of the interim financial statements for 2022.

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. There are no customers that represents 10 per cent or more of the Group's total revenues on an annual basis.

Disaggregation of revenue from contracts with customers

FY 2022	Systems &
Amounts in CAD 1000	Equipment		Materials Spare parts	Other	Total
Revenue recognized at a point in time	-	18,909	1,521	222	20,652
Revenue recognized over time	6,238	-	0	-	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 &		Materials Spare parts	Other	Total
Amounts in CAD 1000	Equipment
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

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

Disaggregation of revenue from contracts with customers (continued)

FY 2021	Systems &		Materials Spare parts	Other	Total
Amounts in CAD 1000	Equipment
Revenue recognized at a point in time	-	17,492	974	414	18,880
Revenue recognized over time	7,931	-	0	-	7,931
Revenue from external customers	7,931	17,492	974	414	26,810
Contribution margin	4,468	6,518	517	414	11,917
Contribution margin %	56.3%	37.3%	53.1%	100.0%	44.4%
Revenue from external customers specified pr geographical area:
North America	4,386	6,730	487	207	11,810
Europe	-	8,196	487	207	8,890
Asia	3,545	2,566	-	-	6,111
Total	7,931	17,492	974	414	26,810

2021 Q4	Systems &
Amounts in CAD 1000	Equipment		Materials Spare parts	Other	Total
Revenue recognized at a point in time		4,470	235	82	4,788
Revenue recognized over time	1,194				1,194
Revenue from external customers	1,194	4,470	235	82	5,982
Contribution margin	65	1,490	13	82	1,651
Contribution margin %	5.4%	33.3%	5.4%	100.0%	27.6%
Revenue from external customers specified pr geographical area:
North America	216	1,650	118	41	2,024
Europe		2,049	118	41	2,207
Asia	978	772			1,750
Total	1,194	4,470	235	82	5,982

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 includes 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 includes 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	FY 2022	2022 Q4	FY 2021	2021 Q4
	(Unaudited)	(Unaudited)	(Unaudited) (Unaudited)
Revenues	26,889	6,843	26,810	5,982
Materials and consumables used	17,540	4,876	14,893	4,332
(b) Contribution margin	9,350	1,967	11,917	1,651
(c) Revenues	26,889	6,843	26,810	5,982
Contribution margin % (b/c)	34.77%	28.74%	44.45%	27.59%

	FY 2022	2022 Q4	FY 2021	2021 Q4
Amounts in CAD thousands	(Unaudited)	(Unaudited)		(Unaudited) (Unaudited)
Net profit/loss	-22,517	-5,057	-14,087	-5,915
Income tax expense (income)	-114	-	114	-
Finance costs	332	-54	656	110
Finance income	-144	-709	-400	94
Share of net income (loss) from associated companies and joint ventures	1,510	437	1,472	421
Depreciation and amortization	3,978	1,065	3,742	1,520
(a) EBITDA	-16,727	-4,317	-8,731	-3,771
Legal and listing cost	3,901	1,378	2,982	382
Retrospective implementation of cloud-based services	-	-	1,121	374
(b) Adjusted EBITDA	-12,827	-2,940	-4,628	-3,015
(c) Revenues	26,889	6,843	26,810	5,982
EBITDA margin (a/c)	-62.21%	-63.09%	-32.56%	-63.03%
Adjusted EBITDA margin (b/c)	-47.70%	-42.96%	-17.26%	-50.41%

	FY 2022	2022 Q4	FY 2021	2021 Q4
Amounts in CAD thousands	(Unaudited)	(Unaudited)		(Unaudited) (Unaudited)
Net profit/loss	-22,517	-5,057	-14,087	-5,915
Income tax expense (income)	-114	-	114	-
Finance cost	332	-54	656	110
Finance Income	-144	-709	-400	94
Share of net income (loss) from associated companies and joint ventures	1,510	437	1,472	421
(a) EBIT	-20,706	-5,382	-12,473	-5,291
Legal and listing cost	3,901	1,378	2,982	382
Retrospective implementation of cloud-based services	-	-	1,121	374
(b) Adjusted EBIT	-16,805	-4,004	-8,370	-4,535
(c) Revenues	26,889	6,843	26,810	5,982
EBIT margin (a/c)	-77.00%	-78.65%	-46.52%	-88.44%
Adjusted EBIT margin (b/c)	-62.50%	-58.52%	-31.22%	-75.81%

Amounts in CAD thousands	31.12.2022	31.12.2021
	(Unaudited)	(Audited)
(a) Total non-current liabilities	5,280	4,005
(b) Total equity	53,412	76,109
Long Term Debt/Equity Ratio (a/b)	0.10	0.05

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