HANSAMATRIX

Innovator and Manufacturing Solution High-Tech Group

Q1 results of 2018 – Nasdaq webinar

Presenters: Ilmars Osmanis, CEO and Maris Macijevskis, CFO

May 29, 2018

2018 Business trends

Data network system global market (new telecom) and industrial sector continuously demonstrate growth which have resulted in strong HansaMatrix Q1 turnover and margins.
HansaMatrix Innovation is succesfully continuing knowledge based business (R&D work and New product development) development continuing good start at Year 2017.
During Q1 2018 HansaMatrix opened its representation in Sweden and focuses sales efforts to grow its market share.

Q1 Quarterly turnover 5.9 million euro, y-o-y growth 31%
Trailing twelwe month (TTM) turnover 21 million EUR
TTM turnover and EBITDA growth respectively 16% and 33%, compared to TTM period ending at Q1 2017 (y-o-y basis)

HansaMatrix EBITDA and net profit margins highest among industry peers
Results reflect management strategy to focus on higher added value product manufacturing and capability to provide the research and development resources (R&D) for customers

TTM figures - Million		TTM	TTM	TTM Net	EBITDA	Net profit
EUR	Market Cap	Revenue	EBITDA	Profit	margin	margin
HansaMatrix	14.5	21.1	3.8	1.6	17.8%	8.5%
Incap Oyj	25.7	48.5	5.0	3.1	10.2%	6.4%
Kitron ASA	170.1	263.7	22.3	10.9	8.4%	4.1%
Data Response ASA	154.1	137.1	11.5	3.2	8.4%	2.3%
Note AB	62.3	123.8	9.9	5.9	8.0%	4.8%
HANZA Holding	17.9	152.6	8.9	2.2	5.8%	1.5%
Inission AB	20.1	74.4	3.8	2.1	5.2%	2.8%

Source: Bloomberg, May 28, 2018

2018 Q1 EBITDA result 1.050 million EUR
- 8% up from 2017Q1
- 29% up from 2017Q4
Net profit results 0.502 million euros
- 22% up from 2017Q1 51% up from 2017Q4
Q1 EBITDA margin 17.8%
Q1 net profit margin 8.5%

TTM (trailing twelve months) 12 months represent period:
- starting April 1, 2017
- ending March 31, 2018
TTM turnover grown to 21.1 million EUR - 33% up from period ending at Q1 2017
TTM EBITDA result is 3.766 million EUR - 16% up from period ending at Q1 2017
TTM net profit is 1.617 million EUR 55% up from period ending at Q1 2017
TTM EBITDA margin reported as 17.9%
TTM net profit margin reported as 7.7%
Margins are highest among industry peers.

During 3 month period of 2018 HansaMatrix made approximately 183 thEUR investments in production capacity increase, research instruments, test systems and development of new products.
During reporting period the Company has signed technological equipment delivery contracts for total amount of 850 thEUR to be invested in Q2 an Q3.
During the Q1 of 2018, AS HansaMatrix and its subsidiaries refinanced and consolidated all the loans and leasing liabilities from AS Citadele banka, SIA Citadele līzings un faktorings and SIA Swedbank leasing to AS SEB banka.

During 2018 Q1 HansaMatrix made investment of 277 thEUR in LightSpace Technologies to finance the development and commercialization of 3D display technologies.
As of March 31, 2018 HansaMatrix investment in the form of the convertible loan in LightSpace Technologies amounted to 499 thEUR.
During Q1 2018 HansaMatrix has provided additional 100 thEUR funds in form of convertible loan to associated company – Zinātnes parks.
As of March 31, 2018 HansaMatrix investment in the form of the convertible loan in Zinātnes parks in total amounted to 946 thEUR.

During a reporting period LightSpace has made an agreement in USA regarding joint development of head mount display based on LightSpace multiplane display technology.
LightSpace has supplied two more units for customer evaluation to USA customers in aviation and training simulation markets.
Marketing activities included participation in SPIE Photonics West 2018 in San Francisco and SPIE DCS 2018 in Orlando, Florida, USA.

During Q1 2018 Zinātnes Parks has invested 47.5 thEUR in construction technical project development.
planned to complete construction project development work by Q3 2018.
Currently searching for real estate investors to support a realization of the project - RIX high tech city.

Two shareholders have sold HansaMatrix shares, increasing the free float:
- FlyCap Investment Fund 191 417 (10.46%) shares to a new institutional and retail investors.
- Macro Rīga 24 664 (1.35%) at a price of EUR 7.50 per share.
Starting with January 2018, HansaMatrix and LightSpace Technologies has started to implement the EU grant funded research project developing optics for robotic 3D vision. Project budget 352.1 thousand EUR, planned EU grant 184.7 thEUR.
February 13, 2018, EUROLCDS issued 1019 new shares. In order to establish control over critical technology supply chain LightSpace Technologies subcribed to 1000 of the new shares (30.73%) for the required investment of EUR 1.4 million EUR. Other shares in EUROLCDS are held by existing shareholders.

Annual general meeting of shareholders on April 26, 2018 approved HansaMatrix dividend in amount of 0.08 EUR per share to be paid out in 2 equal tranches on May 25, 2018 and November 15, 2018.
FlyCap investment fund has further reduced its shareholding in HansaMatrix to remaining 175,808 shares or 9.61%.
LightSpace Technologies has increased shareholding to 76.12% shares of the main supplier EUROLCDS in share swap transaction when BaltCap Jeremie Fund and HansaMatrix has swapped (invested) their EUROLCDS shares for newly issued LightSpace Technologies shares. In addition to share swap HansaMatrix has subscribed to 1000 new and Ilmars Osmanis has used his personal option to buy 500 new LightSpace Technology shares. After the above transactions HansaMatrix holds 39.99% Lightspace Technologies shares.

It has allready been announced HansaMatrix estimate of gross revenues for the coming year 2020:
- revenue by year 2020: to reach 30 million EUR
- EBITDA margin by year 2020: to be between 12 to 15%