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HansaMatrix Earnings Release 2019

Oct 11, 2019

2239_rns_2019-10-11_92f1c078-2a20-44ec-a6d3-f328277c0dd7.html

Earnings Release

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HansaMatrix profit warning for third quarter of 2019

HansaMatrix informs that planned wharehouse reorganization and inventory count as well as introduction of a new warehouse inventory control system was carried out in Pārogre plant. Successful reorganization process required a one-week interruption of the production process, resulting in decreased consolidated sales of the Company in September, amounting to approximately 77% of average monthly Company turnover in the first half of 2019, negatively impacting also consolidated EBITDA and net earnings for September and Q3 2019.

This aforementioned reorganization was planned production cycle one-off measure that was needed to continue providing high quality manufacturing service. The decrase in September turnover is expected to be offset by higher turnover in the following 6 months.

The more precise impact of the above mentioned reorganization on third quarter of 2019 financial results of HansaMatrix will be provided in the Company's Unaudited Interim Condensed Consolidated Financial Statements for the 9 month period ended September 30, 2019, which are scheduled for publication on November 22, 2019.

The definitions of alternative performance indicators (APIs) used in the news release can be found on page 32 of the HansaMatrix Unaudited Interim Condensed Consolidated Financial Statements for the 6 month period ended June 30, 2019.

Māris Macijevskis, CFA

Management Board Member, Finance director

Phone: (+371) 6780 0002

E-mail: [email protected]

http://www.hansamatrix.com

About HansaMatrix

HansaMatrix is a fast-growing, high-technology company offering product design, industrialization and complete manufacturing services in data networking, Internet of Things, industrial segments and other services to high added value business segments. In addition to complete manufacturing services of OEM products, the company offers an ODM business model to both start-up and established companies that seek product development partnerships.