19.8.2021 07:00:01 CEST | Tekna Holding AS | Half yearly financial reports and
audit reports / limited reviews

(Arendal, NORWAY / Sherbrooke QC, CANADA - 19 August 2021) Tekna Holding AS
(Tekna, OSE:TEKNA), the world-leading provider of advanced materials to
industry, reported a solid second quarter 2021, with revenues rising 95 percent
to CAD 7.4 million (Q2 2020: 3.8 million), amid growth in recurring powders
sales and a growing customer portfolio.

The second quarter of 2021 was characterized by:

 * Increase in revenue to CAD 7.4 million, driving YTD revenues 88 percent above
   H1 2020 
 * Order intake of CAD 9.5 million, raising total backlog by 55 percent to CAD
   14.2 million
 * Adjusted EBITDA of CAD -1.1 million, compared to CAD -0.2 million in Q2 2020
 * 103 percent growth year-on-year in powder revenues to CAD 5.0 million
 * 84% growth year-on-year in recurring Materials revenues to CAD 3.5 million
 * Two major contract awards announced with Airbus in Additive Manufacturing and
   LG Chem in Energy Storage

"Tekna extended positive revenue growth momentum into the second quarter,
posting a 95 percent increase year-on-year, while materials revenue more than
doubled in the period," says Luc Dionne, Tekna Holding's chief executive
officer. "I am proud to say that we have already secured 88 percent of the
Company's full-year revenue target. While we are exercising a reasonable level
of prudence in our spending, Tekna's focus remains on the top line, setting up
the necessary infrastructure and resources to scale the Company and achieve its
growth ambitions."

Revenues for the second quarter reached CAD 7.4 million, an increase of CAD 3.6
million (Q2 2020). Both business segments - materials and systems - recorded
substantial gains, over 100 percent and 75 percent respectively, compared to the
second quarter 2020. This performance is attributable to the recovery of the
markets following the COVID crisis, the growth in recurring powder sales and the
growing customer portfolio. Adjusted EBITDA for second quarter stood at CAD -1.1
million compared to CAD -0.2 million in the same period last year, in line with
what was forecast in the Q1 2021 report. In 2020, Tekna benefitted from a
generous COVID support mechanism from the government, whilst at the same time
cutting its costs in line with reduced activity levels.

Tekna announced two major new contracts in the period: a multi-year joint
development agreement with leading Korean chemical company LG Chem to develop
new materials that will improve the storage capacity and the cycle stability of
Lithium-Ion batteries, and a three-year agreement for 3D printing titanium
powder with Airbus. Subsequent to the quarter, Tekna announced a 10-year supply
agreement in Additive Manufacturing with a leading EU jet engine and Aerospace
component OEM.

In May, Tekna announced that it had accepted an invitation from the National
Center for Advanced Materials Performance to participate in a major aerospace
qualification program. Parts produced with Tekna's powder material qualified
under this program will automatically pass the initial design phase and analysis
by the FAA, U.S. Department of Defense (DoD), and the National Aeronautics and
Space Administration (NASA).

Tekna has launched a CAD 16 million investment program to scale up capacity in
all three powder business segments to deliver on accelerating growth. In
addition, the company has approved the commissioning of a new Additive
Manufacturing powder atomizer in France, to meet growing demand generated from
ImphyTek Powders, a Tekna and Aperam joint venture serving the aerospace,
medical, and automotive industries. 

"Looking ahead, all the market indicators we are monitoring are positive," says
Dionne. "The number of orders and the average order size of materials sold in
the additive manufacturing segment are increasing, while new sales channels are
opening-up in consumers electronics. The EV and 5G markets are booming, which is
driving the demand for Tekna's nano-size Silicon and Nickel powders. There could
not be a more propitious time to be scaling up Tekna's technology, which is one
of very few that enables OEMs to differentiate themselves with superior products
in their markets. "

"The favourable market conditions that we have observed in the first six months
are expected to continue throughout the year and Tekna's ambition to grow 2020
materials revenues of CAD ~13 million to a run-rate of CAD ~22 million in 2021
is well within reach," Dionne adds.

Tekna will present its financial results for the second quarter and half-year
2021 on Thursday 19 August, 2021, at 12:00 CEST. The investor presentation will
be live streamed and be hosted by Luc Dionne, CEO of Tekna Holding. The
presentation will be held in English and questions can be submitted throughout
the event. The streaming event is available through: 
https://www.tekna.com/investors/webcast-2021q2

 

The full report and presentation are available at 
https://www.tekna.com/investors

 

For additional information, please contact: Arina van Oost, Investor Relations 

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, +1 438 885 6330, Investors@tekna.com 

ABOUT TEKNA HOLDING AS

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.

www.tekna.com - http://www.tekna.com



ATTACHMENTS

Download announcement as PDF.pdf -
https://kommunikasjon.ntb.no/ir-files/17847682/741/995/Download%20announcement%2
0as%20PDF.pdf

2021Q2 presentation vF.pdf -
https://kommunikasjon.ntb.no/ir-files/17847682/741/993/2021Q2%20presentation%20v
F.pdf

2021 Half year Operations Report vF.pdf -
https://kommunikasjon.ntb.no/ir-files/17847682/741/994/2021%20Half%20year%20Oper
ations%20Report%20vF.pdf

Click here for more information

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