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Company Introduction February, 10th 2025
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Disclaimer • This presentation has been prepared by Lokotech Group A/S (the “Company”) solely for information purposes. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities. Certain statements included in this presentation contain various forward-looking statements that reflect management’s current views with respect to future events and financial and operational performance. The words “believe,” “expect,” “anticipate,” “intend,” “may,” “plan,” “estimate,” “should,” “could,” “aim,” “target,” “might,” or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include but are not limited to the Company’s ability to operate profitably, maintain its competitive position, to promote and improve its reputation, to successfully execute its strategy and the impact of changes in pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, neither the Company nor its subsidiary undertakings or any of such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. 2
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Today’s speakers 3 Owns and operates the mining pool PowerPool.io Filecoin Storage Provider Ola Stene-Johansen CEO M.sc.BA, NHH Investment Management, Cofounder of subsidiaries Yngve B. Johansen Chairman Cand.sc. Physics, NTNU 24 years developing technology for Schlumberger, Statoil Forskning, and now Principal R&D Manager Subsurface for AkerBP Ruben Gómez CEO Powerpool B.sc. Applied Mathematics & Computing, UC3M Founder and CEO, Powerpool Mining SL Software Dev, Lokotech Group
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A fabless semiconductor company for blockchain and AI operation, with ownership interests in mining pools and data center activities 4 LOKOTECH TODAY Operates cash-generating mining pools and data center operations expected to cover more than fixed costs in ‘25 Redesigned chip (“ASIC”) with superior power efficiency performance ready for tape out and mass production Listed on Euronext Growth with a current market capitalization of NOK 450 million as of February 10, 2025 RECENT CHIP DEVELOPMENT MILESTONES 2022 Sep-2023 Sep-2024 Chip successfully redesigned, with downscaled prototype development underway Commencement of prototype testing and validation for blockchain operation (Scrypt) Final power sims. for commercial chip, outperforming industry leaders by 135% on a larger and less advanced production node • • • GROUP STRUCTURE Scrypt ASIC Owns and operates the mining pool PowerPool.io Four datacenter projects in various development stages, with ownership of servers Filecoin Storage Provider SPV for future AI business Group AS 100% 67% 100% 100% 100% Lokotech Group Scrypt ASIC
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The group is cash flow positive 5 Lokotech Group Scrypt ASIC Owns, leases, and operates four data centers Including a decommissioned nuclear bunker within a 5,000 m² mountain hall • Launched in January 2025 Services launched after completing the first investment phase in infrastructure, dedicated servers, and equipment • Capable of supporting 10+ large clients Existing investments can support 10+ large clients without significant additional capex • Able to generate NOK 5-10m in annual free cash flow At full occupancy, the sites can generate NOK 5-10m in annual free cash flow, depending on service levels and product mix • Proprietary software with attractive margins Leverages proprietary, math-first software and advanced optimization algorithms to maximize miner profitability with a competitive 1% fee, maintaining a stable 3% net revenue margin • Strong financial performance In November 2024, daily net revenue was EUR 3,400, with fixed costs of EUR 50 and variable costs of 3-5% of net revenue • Rapid growth and retention 2023 saw a 20% monthly net revenue growth rate, with 1,266% YoY growth (Aug-23 to Aug-24). 2024 Jan-Nov showed a 13.9% monthly growth rate, with the first client still actively mining • Potential to generate EUR 2-3m in profit If 2024 growth continues, FY2025 profit could reach EUR 2.8M If growth stagnates to 3% CMGR, profit is projected at EUR 1.5M •
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Chip status: A significant breakthrough 6 Scrypt ASIC Lokotech Group • • • DoubleBarrel 18.64 GH/s @ 1750W 0.09 J/MH $12 999 Process node: 12 nm LPP+ L9 16 GH/s @ 3360W 0.21 J/MH $11 499- $14 999 Process node: 5 nm Successful redesign of dual-use chip After a series of rigorous design iterations, comprehensive simulations, testing, and validation, Lokotech has developed a groundbreaking dual-use chip for blockchain mining (Scrypt ASIC) and edge AI inference Outperforming current market leader Testing and simulations demonstrate that the chip outperforms the market leader and closest peer (Bitmain), offering 2–4x greater energy efficiency in blockchain mining – despite using a relatively large process node of 12 nm (vs 5 nm) Significant pre-orders already secured Lokotech is in discussions with large international customers. The company has already signed framework agreements with private cusomters in the USA in the size of USD 2-5 million each, with upside potential. Total back log in amounts of USD 6-12 Million
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A defined plan for manufacturing and delivery 7 Q1’25 Q2’25 Q3’25 Q4’25 Q1’26 Q2’26 Q3’26 Foundry StagesMilestones Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Rev 1.1: FATS Rev 1.1 VRQCTRev 1.1 Final GDSII Complete Silicon Out of Fab Rev 1.0 ASICs Available First Units Available First 1.0 Mass Production Wafers delivery Rev 1.0 Complete Production Ramp up Tape out Rev 1.0: Fabrication, Assembly, T est, Shipping (“FATS”) Rev 1.0: Validation, Reliability, Quality Control, T esting (“VRQCT”) YYY WafersXXX WafersRev 1.0 Production ramp up Scrypt ASIC Lokotech Group • • •
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The engineering and manufacturing process has been tailored to minimize risk factors 8 Improve reliability and programmability An integration of an on-chip microcontroller, enhances reliability and programmability to mitigate minor flaws in the mask set Process to improve overall production efficiency Regardless of the success of the Rev 1.0 mask set, a consideration of a Rev 1.1 at a later stage is planned. The rationale for this would be to optimize production yield Scrypt ASIC Lokotech Group • • • • Design team with strong track record Lokotech's design team has completed over 15 tape-outs without major flaws requiring a re-spin. This shows the confidence in the quality of the design. Downscaled prototype verified in actual use on mainnet. Using a mature, proven technology node Designed chip for a mature process technology node (12nm), enabling a cheaper and faster way to market, and minimizing technical risks associated with blocks from standard libraries Scrypt ASIC Specifications Power Efficiency: 0.077 J/MH Power Consumption: 0.80W Hashrate Per ASIC: 10.40 MH/s
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Lokotech is considering a capital raise to secure the tape-out and enable mass production of the chip 9 7.5 0.5 4.0 12.5-15.00.5-2.5 Mask set and associated non-recurring engineering for production equipment Wafer probe and test equipment Silicon wafers, 100 engineering wafers and 200 production wafers – can be scaled up or down Capital buffer and general corporate purposes Total capital requirement USD million Scrypt ASIC Lokotech Group
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An estimated accumulated addressable market of USD 1.4 billion for Lokotech’sfirst chip 10 Currently, there are ~1.9 Petahash active on the top Scrypt blockchains, equating to a market of around ~722k Hashblades Assuming a price of USD 2,000 and an economic lifetime of the chips of 7.5 years the total adressable market in a three-year sales window for Lokotech’s chip is estimated to USD 1.4 billion A selling price of USD 2,000 is highly competitive, potentially raising the break-even price per kWh of up to 300%, compared to similar offerings from comparable companies Given successful development of Lokotech’s first blockchain mining chip, the company aims to capture a significant market share due to its superior power efficiency and performance, resulting in a competitive pricing point Scrypt ASIC Lokotech Group • • • • Accumulated addressable market over a three-year period USD 1.4 billion Calculation assumes USD 2k per blade 722k blades 2k USD/blade Hashblade
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Company highlights 11 Lokotech Group – in brief Lokotech Group is a publicly listed company on Euronext Growth, with a market capitalization of approximately NOK 450 million. It operates five subsidiaries focused on semiconductors, data centers, and crypto mining pools Lokotech AS – The most efficient chip for Scrypt blockchains Its primary subsidiary, Lokotech AS, has developed a groundbreaking dual-use chip for blockchain mining (Scrypt) and AI. Testing and simulations demonstrate that the chip outperforms the market leader and closest peer, offering 2-4x greater energy efficiency. Strong interest from large market players to sign pre-orders Lokotech AS is targeting a multi-billion-dollar industry and has already generated strong interest in its products. Lokotech is in discussions with large international customers. Total backlog amount to USD 6-12 million, with potential upside Considering a capital raise to secure tape-out and enable mass production of the chip The company contemplates raising NOK 125-175 million through hybrid debt, convertible loans, equity, or a combination. Funds will support the Scrypt ASIC tape-out, production investments, engineering expenses, and general corporate purposes as it transitions to mass production. A US- based investor has indicated interest to participate with NOK 25 million in a convertible loan. Cash-generating mining pool and data center operations expected to cover more than Group's costs in 2025 Powerpool Mining SL, a 67% owned subsidiary, is generating positive and increasing cash flow, while Arctic Core, which operates four data centers, is expected to contribute a combined cash flow of NOK 23-43 million in 2025, more than covering fixed costs of about NOK 12 million Lokotech Group Scrypt ASIC • • • • •
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post@lokotech.no Org Number: 818 709 692 www.lokotechgroup.com Address: St. Olavs gate 21B 0165 Oslo, Norway Thank You!