Key messages and Q&A on half-year financial report January-June 2025

• In the semiconductor industry, explosive growth of AI is driving demand for advanced chips, making EUV lithography increasingly critical. Advanced chips (< 7nm features) are the fastest growing segment in the semiconductor industry, projected to grow at roughly 20% annually, with logic chips growing at 10–20% and DRAM 15–25% annually between 2025–2030. (ASML). CAPEX on advanced process tools is projected to exceed USD 50Bn by 2028 (CAGR 18%) (SEMI).

• As high-power tools emerge, CNT pellicles become essential. Industry sources anticipate that advanced chip manufacturing with 600W power scanners will start by 2027. This is expected to be the inflection point for wider usage of CNT pellicles. We expect some usage of CNT pellicles also with 500W scanners due to high transmission and productivity gains.

• Our strengthened market position is supported by progress with existing customers, including the successful customer approval of our first reactor. In addition, we are engaging with new prospects, expanding our CNT pellicle market coverage even further. Notably, we haven’t faced much competition for CNT technology adoption, which highlights the exceptional strength and potential of our offering in this market.

• The decrease in revenue was primarily caused by 1) the semiconductor industry’s delay to adopt high-power scanners, 2) slower-than-anticipated customer approvals of CNT100 SEMI reactors, which delayed both revenue recognition and potential follow-on reactor orders from existing customers, and 3) general market uncertainty.

• Gross profit as a percentage of revenue increased by 5.3 percentage points to 67.3% (62.1%). The increase in gross profit as a percentage of revenue was driven by changes in the product mix.

• The development of adjusted EBIT margin, -66.4% (-20.6%), was primarily attributable to the decrease in revenue and secondarily to the increase in headcount.

• The first CNT100 SEMI reactor and post-processing equipment received customer approval and are now ready to start mass production of CNT pellicle membranes. Before pilot and risk mass production, the customer must secure approval for the complete coated CNT pellicle product.

• For the second reactor, customer approval (Site Acceptance Test, SAT) is still ongoing. The timeline for obtaining SAT is not fully within Canatu’s control and the risk of delays cannot therefore be excluded.

• We are negotiating new orders with existing and prospective customers across the ecosystem.

• Regarding existing customers, we expect that any potential follow-on CNT100 SEMI reactor orders will likely be subject to the successful completion of the final SATs for the first two CNT100 SEMI reactors Canatu shipped in 2024.

• Once our first two reactors receive customer approval, we expect follow-on orders from existing customers to be delivered faster.

• This one-year JDA aims to improve CNT performance. It focuses on optimizing the sheet resistance-to-transmittance ratio of CNTs to achieve high electrical conductivity while maintaining excellent light transmission.

• This collaboration enhances current applications, such as ADAS camera heaters, and paves the way to new high-value opportunities for our advanced CNTs, including next-generation solar cells.

• In the Automotive Business, our focus has been on starting mass production of ADAS camera heaters. The timing of the start of the mass production ramp-up depends on customers and their processes.

• We have reinforced our strategic, long-term commitment to Medical Diagnostics. Our focus continues to be on point-of-care in infectious diseases and hormone monitoring.

• We have recreated our new business development by deploying enhanced resources and a dedicated team, with the goal of systemic assessment of new high-value applications for our advanced CNT and bringing them to market faster.

• For example, the development work of next-generation solar panel applications aims at generating power using CNT electrodes. In another area, we are producing sensors protecting advanced electronic devices in the defense industry. These initiatives demonstrate Canatu’s ability to serve demanding, emerging applications and highlight both the versatility of our CNT technology and the reliability of our manufacturing.

• As part of new business development, Canatu was selected as a Leading Company (Veturi) by Business Finland and awarded up to EUR 10 million in funding. This support enables Canatu to lead the creation of an industrial ecosystem focused on innovation and growth in the Carbon Age, with total ecosystem funding reaching up to EUR 20 million.

• We are actively working on our strategy to assess possibilities beyond our current three focus areas. While our primary efforts remain on delivering value in these core areas, we continuously monitor market developments and evaluate new opportunities where our CNT technology could provide a competitive advantage.

• Producing sensors to protect advanced electronic devices in the defense industry showcases Canatu’s potential to serve emerging and demanding applications, underlining the adaptability of its CNT technology. Although the current supply is industry-specific and not part of the company’s long-term strategic focus, the project illustrates the breadth of use cases supported by the company’s materials and engineering expertise.

• Investments to implement the growth strategy are underway and expected to grow significantly in H2.

• After the reporting period, Canatu ordered a PELMIS EUV pellicle inspection system from Lasertec to improve quality control and metrology capabilities. This investment is a key enabler for the long-term development of our CNT SEMI reactor and pellicle membrane business, strengthening our competitiveness, raising quality standards, and ensuring we meet the stringent requirements of semiconductor customers.

• For 2025, we expect a revenue delay due to slower-than-anticipated market deployment of high-power scanners. However, we remain confident in our path forward and firmly believe that Canatu is well-positioned for sustained growth in the long-term.

• We expect that the revenue for the financial year 2025 will decline compared to the 2024 unaudited pro forma revenue of EUR 22 million. If no new CNT100 SEMI reactor orders are received during H2/2025, the revenue for the financial year 2025 is expected to decline significantly compared to the unaudited pro forma revenue of EUR 22 million.

• We see that Canatu’s long-term potential in the three business focus areas—semiconductor, automotive, and medical diagnostics—has remained unchanged.

• Our long-term financial targets are:
Over EUR 100 million revenue in 2027, EBIT margin (adjusted for goodwill amortization in accordance with the Finnish Accounting Standards) over 30% in 2027.

• Uncertainty concerning the timeline for achieving the long-term financial targets has materially increased, based mainly on the semiconductor industry’s delay in adopting high-power scanners.

• Canatu monitors its long-term financial targets on a continuous basis and reviews them at least annually in connection with its annual strategy process. Canatu will provide an update on its next annual strategy process at the Capital Markets Day scheduled to be held in March 2026.