HansaMatrix — Investor Presentation 2018

Nov 26, 2018

HANSAMATRIX

Innovator and Manufacturing Solution High-Tech Group

November 26, 2018 Company presentation – CEO meets Investors

DISCLAIMER

This document has been prepared by AS HansaMatrix ("Company") for informational purposes only. This document does not by any means constitute an offer or a solicitation, nor a recommendation to purchase or sell securities, commodities, currencies or other investments referred to herein. This document does not constitute independent investment advice. No investment decision shall be based on this material. The document belongs to the Company. The information contained in this document has been compiled from published sources which the Company believes to be reliable and accurate and in good faith.

Although carefully verified, the Company makes no representations or warranties of any kind, expressed or implied, about the completeness, accuracy, reliability or suitability with respect to the information contained herein. Any reliance placed on such information is therefore strictly at the risk of the reader. In no event shall the Company be liable for any loss or damage including direct, indirect, consequential loss or damage arising in connection with the use of the information contained herein. The Company shall also assume no other obligations or liability of whatever nature in connection with this preliminary material, such as for example an obligation to ensure the offering and issue of any securities or an obligation to update this information should the underlying circumstances change, etc. No respective claims can be brought against the Company in connection with the information contained herein.

This document contains forward-looking statements that are based on the Company's expectations, estimates, projections and assumptions. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contemplated by such statements. Forward-looking statements are made and based on information available to the Company on the date of this document. The Company does not assume, and expressly disclaim, any obligation to update this information, nor does the Company take any responsibility to guarantee any result predicted in this document to become actual.

	Investment case
Overview	 Complete B2B solutions with full range of design, industrialisation and manufacture of high tech products  One of the leading Nordic and Baltic electronic system development and manufacturing companies
Key strengths	 Full utilisation of their intellectual and technical capacities  Knowledge intensive technologies and lean, efficient and cost effective volume manufacturing operation  Operates 2 modern, high capacity plants and develops R&D team and site  In business since 1999 and established BRAND
Strategy	 Clear focus on growth: expand capacity by investing in high tech product manufacturing capacity and development  Product and manufacturing knowledge development for future tech needs
Investment opportunity	 Company has platform and knowledge for growth  Experienced and technically skilled management  Direct exposure to strong Baltic macro story

Company in focus

• Complete solutions in electronics product development and manufacturing
• Core operations have stable growth results and margins
• From 2012 to 2017 the annual sales growth on average 21.6%
• A leading manufacturing facility of its kind in the Nordic/Baltic region with a focus on automation

Internet of Things: is the network of physical objects or "things" embedded with electronics, software, sensors, and network connectivity, which enables these objects to collect and exchange data

EURm	2010 2012	2011 2013	2012 2014 2013	2014 2015	2015 2016	2017
Net turnover	5.3 7.4	5.6 10.3	7.4 10.7 10.3	10.7 13.4	13.4 16.9	19.7
Cost of sales	-3.8 -5.4	-3.9 -8.1	-5.4 -8.6 -8.1	-10.7 -8.6	-10.7 -14.7	-15.9
Gross profit	1.5 2.0	1.7 2.2	2.0 2.1 2.2	2.1 2.7	2.7 2.3	3.7
Operating profit	0.6 0.9	0.8 0.9	0.9 0.9 0.9	0.9 1.5	1.5 0.8	1.9
Net profit	0.4 0.8	0.6 0.8	0.8 -2.0 0.8	-2.0 1.1	1.1 0.6	1.7
EBITDA	1.9 1.8	1.9 1.8	1.8 1.8 1.8	1.8 2.5	2.5 2.2	3.7
Net Debt	6.9 6.2	6.3 5.3	6.2 6.0 5.3	6.0 5.7	5.7 5.7	4.5

2014 one off loss due to Hanza Holding AB shares sold and related impairment totaling EUR 2.6m

Source: HansaMatrix annual consolidated reports

HansaMatrix Reinvented

• Transformation of EMS into ODM, and further into Product knowledge company (like Lenovo, Quantas, Foxconn, e.a.)
• HansaMatrix Reinvented:
  • Fast time to market integrated manufacturing house for complex electronic/boxbuild/optical products from prototypes to medium volume production (experienced team in setting up and expanding manufacturing facilities)
  • Innovation labs with R&D team and prototype fabrication with ongoing product development projects in Medical products, Internet of Things hardware, Optical products, structured light projection, AR/VR hardware
  • Product arm with investments in LightSpace Tehcnologies, EUROLCDS and Buildit accelerator. Globally leading liquid crystal diffuser technology (with own production) and Volumetric 3D image display technology for proffesional use (science, medicine, defence) and consumer use (AR/VR, automotive and gaming)

2018 - 9 Month results

• Turnover 16.09 M EUR increase by 11% from 2017 9 months period;
• EBITDA result 2.80 M EUR decrease by 2% from 2017 9 months period;
• Net profit 1.06 M EUR secrease by 11% from 2017 9 months period;
• 9 months EBITDA margin of 17.4% and net profit margin of 6.6%
• Several factors contributed to turnover slow down in Q3 and slight profit decline:
  • Ongoing deficit of some important electronic components;
  • Yearly salary inflation ~10% which puts pressure on salary increase;
  • Fire accident at client's warehouse that impacted turnowver for several months

3 500 9 month results, thousand EUR

Recent and upcoming events

• 2018-10-31 The European Investment Bank (EIB) has approved 10 million EUR long-term quasi equity financing facility in support of HansaMatrix group's planned investments, which total 20 million EUR in the years 2018-2020.
• 2018-10-31 HansaMatrix has signed contract and received purchase order in amount of 3 million USD to supply high complexity electronic assemblies over period of years 2019-2020 to industrial segment corporate customer with location outside EU. Customer name according to the contract remains confidential.
• Announced company webinar on Q3 and 9m company results November 28, 9:00
• Announced extraordnary shareholder meeting on November 30, 10:00

Guidance statement

• From the time of listing in 2016 the Company has already provided investors and its shareholders guidance on revenues for the period up to the year 2018, forecasting annual revenues to reach 20 million EUR by year 2018. As we are in the Year 2018 this guidance confidently fullfills.
• At the 2019 HansaMatrix estimate of gross revenues for the coming 3 year period:
  • revenue by year 2020: to reach 30 million EUR
  • EBITDA margin by year 2020: to be between 12 to 15%

Dividend policy

• The Company intends to pay dividends each year. However the exact payout ratio will be dependent on several factors including (but not limited to):
  • Absolute profitability levels in a particular year
  • Investment opportunities
• Year 2016 dividend in the amount of EUR 0.03 per share (approx 10% of net profit) was paid on May 25, 2017
• Year 2017 dividend in the amount of EUR 0.08 per share (approx 10% of net profit) was distributed in two tranches –
  • the first EUR 0.04 per share at May 25, 2018 (May 23, 2018 as Ex-date, May 24, 2018 as Record date);
  • the second EUR 0.04 per share at November 15, 2018 (November 13, 2018 as Exdate, November 14, 2018, as a Record date)

Thank you!