TEKNA HOLDING ASA: FINANCIAL RESULTS FOR THIRD QUARTER 2022

10 Nov 2022 07:00 CET

10.11.2022 07:00:01 CET | Tekna Holding ASA | Half yearly financial reports and
audit reports / limited reviews

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

"The quarter was marked by continued strong demand for advanced materials for
additive manufacturing and a slower growth in revenues which was as expected. We
also saw a rebound of the Systems business with a more than CAD 9 million
PlasmaSonic order, which will be booked as order intake in the fourth quarter,"
said Luc Dionne, CEO of Tekna Holding ASA.

Total revenue in the quarter was CAD 5.9 million, an increase of 5.7 per cent
compared to the third quarter in 2021. Sales of advanced materials were marked
by downtime while the machine park continued to undergo upgrades, which slowed
down growth. Adjusted EBITDA in the third quarter of 2022 was CAD -4.0 million,
reflecting lower revenues and front loading of resources supporting the
strategy.

Order intake for additive manufacturing materials was CAD 3.7 million, which is
lower than in recent quarters and slightly higher than in the third quarter of
2021. The backlog for materials at the end of September 2022 was CAD 12.5
million, up from CAD 8 million last year. The traction for additive powders
remains strong and Tekna materials are instrumental to leading original
equipment manufacturers' (OEM) industrialization success.

The scheduled capacity increase for additive materials is progressing. Tekna
aims to complete the 70 per cent increase in output by the end of Q1 2023. In
the meantime, sales revenue for the second half of 2022 is expected to be
approximately the same level as the second half of 2021.

"Additive manufacturing remains the most commercialized segment for our advanced
materials with strong market growth. Increasing materials production capacity is
the top priority for generating revenue. The full effect of the output increase
will be reflected in sales revenues when all machines are upgraded to the new
level in 2023," said Mr. Dionne.

In addition to additive manufacturing, Tekna continues to pursue a significant
potential for its advanced materials in microelectronics and, for the longer
term, in energy storage while carefully managing cashflow and resources.

"A recent tour of leading manufacturers of multi-layer ceramic capacitors
(MLCCs) in Asia confirms the observed industry trends and the customers'
interest and strategic need for MLCC materials. The development work is still
progressing with the leading customers, but no order is expected before 2023,"
said Mr. Dionne.

Due to the delays in production and development, Tekna expects to require
additional financing in 2023. The company is in dialogue with its main
shareholder, Arendals Fossekompani, regarding future financing. A conclusion to
this is expected no later than the first quarter of 2023.

Results presentation

Tekna will present its financial results for the third quarter today at 13:00
CET. The results will be presented by Luc Dionne, CEO of Tekna Holding ASA, and
the event will be made available via a live webcast. Click the following link to
register and gain access to the webcast:
https://www.tekna.com/investors/webcast-2022q3

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

For more information, please see the third quarter presentation material, which
is attached to this notice and available at http://www.tekna.com.



DISCLOSURE REGULATION

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

CONTACTS

* Arina van Oost, Investor Relations | VP Corporate Strategic Development &
Innovation, Tekna, +1 438 885 6330, Investors@tekna.com

ABOUT TEKNA HOLDING ASA

Tekna is a world-leading provider of advanced materials to industry,
headquartered in Sherbrooke, Canada.

Tekna produces high-purity metal powders for applications such as 3D printing in
the aerospace, medical and automotive sectors, as well as optimized induction
plasma systems for industrial research and production. With its unique,
IP-protected plasma technology, the company is well positioned in the growing
market for advanced nanomaterials within the electronics and batteries
industries.

Building on 30 years of delivering excellence, Tekna is a global player
recognized for its quality products and its commitment to its large base of
multinational blue-chip customers. Tekna's powder products increase productivity
and enable more efficient use of materials, thereby paving the way towards a
more resilient supply chain and circular economy.

https://www.tekna.com



ATTACHMENTS

Download announcement as PDF.pdf -
https://kommunikasjon.ntb.no/ir-files/17847682/1877/2540/Download%20announcement
%20as%20PDF.pdf

2022Q3 vF.pdf -
https://kommunikasjon.ntb.no/ir-files/17847682/1877/2539/2022Q3%20vF.pdf

More information:
Access the news on Oslo Bors NewsWeb site

575261_en_Download announcement as PDF.pdf
575261_en_2022Q3 vF.pdf