HANSAMATRIX

Innovator and Manufacturing Solution High-Tech Group

2nd quarter and 6 month results – Nasdaq webinar

21 September, 2016

Substantial sales increase in industrial product segment in Nordic countries;
Increase of industrial segment share in sales to 39%
Data network products sales at 2015Q2 sales level and has increased by 35% from 2016Q1

2nd quarter profitability results

Sales increase in Nordic countries;
Increase in Nordic sales by 21% in comparison to 2015H1 and by 11% in comparison to 2015H2
Increase in Baltic sales by 16% in comparison to 2015H1 and 1% to 2015H2
Increase in rest of EU sales by 95% in comparison to 2015H1 and decrease by 44% to 2015H2 – caused mostly by sezonality of investments

Increase in industrial product sales by 56% in comparison to 2015H1, by 17% to 2015H2 share of 39% in sales
Decrease in data network products sales by 5% in comparison to 2015H1 and increase by 1% to 2015H2 – share of 44% in sales
Decrease of Internet of Things products sales by 51% to 2015H1 and by 60% to 2015H2 - mostly due to completion of few larger projects in 2015H2;

EBITDA results: 0.932 and net profit: 0.139 million euros;
EBITDA decrease by 18% in comparison to 2015H1 and decrease by 35% to 2015H2
Lover then expected sales at first three months of 2016 and increased R&D expense levels are main reasons for lover EBITDA levels for period
Net profit decrease by 75% in comparison to 2015H1 and 74% to 2015H2
Increased depreciation levels of large investments done in 2015 is main cause for lover net profit levels in this period

Rolling 12 months results in sales are 14.6 million euros
Rolling 12 months EBITDA results are 2.369 million euros;
EBITDA margin decrease to 16% is connected to faster increase of sales lower margin products and weaker then expected sales of high margin products in

26th January 2016 company has acquired land plot of 1.535 ha located next to existing plant in Ogre. Company have started building project of warehouse and production space extension to existing plant to be completed by 2018.
In June 2016 company with cooperation of LightSpace Technologies, SIA has started realization of research and development project supervised by "Centrālā Finanšu un līgumu aģentūra" with project title "Real time 3D volumetric imaging technology development" financed by European Regional Development Funds (ERDF). Overall budget of the project – 665'046 EUR
Company Zinātnes Parks, SIA in which HansaMatrix owns 24% shares and for which it is providing investment loan on 26th July 2016 has acquired 4.51ha building site in Riga International Airport and started construction project development. In that site 2018 HansaMatrix is planning to open Fast Track manufacturing facility, R&D site and new product accelerator.

Consolidated revenue target for 2018: EUR 20m
Subject to ongoing revenue growth, absolute EBITDA levels are expected to increase over time
EBITDA margins may gradually decrease over time due to the incorporation of a greater percentage of high value components (which typically carry lower margins). Nevertheless, the Company expects this to be higher than basic EMS peers due to the incorporation of its 'knowledge business' (proprietary technology) and selection of customers/products.