Today, LED iBond International's (LED iBond) Board of Directors approved the interim financial report for the third quarter of 2020 (Q3). Highlights of the report include:

• With the order announced in Q3 for the delivery to Vanderlande of UV-C LED-based equipment for disinfection of hand baggage trays in airport security lines, LED iBond's largest order ever, the company's entry into the UV-C disinfection market is on track.
• The formation of LED iBond's vertical farming business is also developing according to plan, propelled by the OEM agreement for delivery of shelf-and-lighting panels for Senmatic's industrial vertical farming projects, announced in early October.
• Increasing sales of the LED iBond Kitchen line of products in Q3 cannot make up for the continued adverse impact of the COVID-19 pandemic currently preventing all international sales activities within the company's smart building business.
• Product development activities progress as planned, including the previously announced market introduction of the replaceable LED-plug, initially targeting the elevator ceiling market.

• In Q3, LED iBond generated revenues of TDKK 2,264 from goods sold, a decline of 27 % compared to Q3 of 2019 due to the negative market effects of COVID-19.
• The decline in sales caused by the pandemic was partly offset in Q3 by a one-off COVID-19 related government compensation of TDKK 1,664.
• Despite the COVID-19 slowdown, EBITDA came in at TDKK -1,571 for Q3, as compared to TDKK -2,342 for the year-earlier period. The main reason for this improvement is lower staff costs and lower depreciation in Q3 2020.
• As in the previous interim financial report, LED iBond maintains its financial outlook:
• Full year positive cash flow from operations in 2021
• Revenue of DKK 100 million in 2022
• Long-term EBITDA-margin above 30 %

TDKK Q3 Q3 Change Q1-Q3 Q1-Q3 Change
2020 2019 2020 2019

Profit & Loss
Revenue of goods 2,264 3,092 -27% 4,636 7,097 -35%
sold
Grants & 1,664 0 -N/A 1,664 1,763 -6%
Compensation
EBITDA -93 -2,342 -5,409 -3,738
EBIT -2,768 -5,249 -13,433 -10,972
Net Financial -135 -2,075 -694 -3,222
expenses (Ex. IPO
Costs)
Profit/loss before -2,903 -7,324 -14,127 -17,586
IPO Costs and tax
Profit/loss before -2,903 -7,324 -17,586 -14,194
tax
Profit/loss -2,264 -5,713 -13,717 -11,072

Balance Sheet
Total assets 69,843 52,436 33% 69,843 52,436 33%
Total equity 48,100 33,154 45% 48,100 33,154 45%
Net working capital 23,076 12,431 86% 23,076 12,431 86%
Net interest 13,212 13,241 0% 13,212 13,241 0%
-bearing debt.

Cash flow statement
Cash flow from -2,833 -5,053 44% -8,756 -7,680 -14%
operating activity
Cash flow from -1,680 -973 -73% -6,351 -5,530 -15%
investing activity
Cash flow from 150 2,322 -94% 24,160 2,322 941%
financing activity
Change in cash and -4,363 -3,704 -18% 9,053 -10,888 183%
cash equivalents