Nasdaq Webinar Q2 and 6m (H1) 2022 results

August 16, 2022

Table of Contents ¹²

Business, operational and financial highlights Detailed Q2 2022 financial results Detailed financial results 6m (H1) 2022 TTM results as at the end of Q2 2022 Business development and outlook Questions Lightspace Technologies business update

Business, operational and financial highlights

Jānis Sams, CEO

Business trends and operations

› Strong and growing demand in data networks, IoT and industrial sectors.
› Manufacturing revenue growth constrained by the global component deficit.
› Semiconductor availability is improving as market demand decreases, thus improving the overall situation.
› Growing energy prices and general inflation influence margins.
› Focus on inventory level and cash flow management.
› Order book as at the end of Q2 2022 21.8 MEUR, 13% up compared to Q1 2022.

Q2 2022 financial result summary

› 6.5 MEUR revenue, 8% increase compared to Q2 2021, 9% increase compared to Q1 2022.
› 0.4 MEUR EBITDA, 6.6% EBITDA margin.
› Margins decreased compared to Q2 2021, which is explained by manufactured product mix changes, influenced by global component deficit.

Indicator/EUR'000				Q2 2021 Q1 2022 Q22 2022 Q2 Q0Qª	Q2 YoYb	Q2 2022 TTM
Revenue	6 042	6 030	6 555	+9%	+8%	22 677
EBITDA	1 151	809	429	-45%	-63%	2 578
EBITDA margin	19.04%	13.42%	6.55%			11.37%
Net profit	-327	-46	-686			-2 402°
Normalized net profit	547	181	-150			53
Normalized net profit margin	9.05%	3.00%	-2.30%			0.23%
Earnings per share (EPS)	-0.18	-0.03	-0.37			-1.31
Diluted EPS	-0.16	-0.02	-0.33			-1.17

^a – Q2 2022 vs Q1 2022, b -Q2 2022 vs Q2 2021, c - includes 1.4 M EUR Zinatnes parks one-off fair value write off and other non-cash items

Peer company analysis

› HansaMatrix share price undervalued by market: Enterprise Value (EV) to EBITDA multiple 7 versus 12 peer average.
› Value of investment in Lightspace Technologies currently is not fully represented in HansaMatrix share price.
› HansaMatrix EBITDA margin second highest among peers 11.4%.

Company/MEUR	Current EV to	TTM	TTM	TTM net	EBITDA	Net profit
	TTM EBITDA	revenue	EBITDA	profit	margin	margin
Incap Oyj	12	213	35.2	24.5	16.5%	11.5%
Note AB	16	312	37.5	22.4	12.0%	7.2%
HansaMatrix AS	7	23	2.6	(2.4)*	11.4%	(10.6%)
HANZA Holding	9	293	27.0	9.7	9.2%	3.3%
Kitron ASA	14	476	41.1	16.9	8.6%	3.6%
Inission AB	9	108	7.3	0.1	6.8%	0.1%

Source: Bloomberg, August 15, 2022, ranked by EBITDA margin

* - includes 1.4 M EUR Zinatnes parks one-off fair value write off and other non-cash items

Detailed financial results Q2 2022

Māris Macijevskis, CFO

In Q2 2022 HansaMatrix consolidated revenue amounted to 6.555 MEUR demonstrating 8% increase compared to Q2 2021 and 9% increase compared to Q1 2022

Quarterly revenue, th EUR

› Baltic sales – 38% 17% from Q2 2021

› Nordic sales – 28% 17% from Q2 2021
› The rest of EU sales – 29% 762% from Q2 2021
› Outside EU – 4% 79% from Q2 2021

Quarterly revenue by region, th EUR

› Data network products – 28% 47% from Q2 2021

› Industrial segment – 55% 89% from Q2 2021
› Internet of Things – 11% 212% from Q2 2021
› Optics and photonics – 5% 50% from Q2 2021

Quarterly revenue by sector, th EUR

› Q2 2022 EBITDA – 0.429 MEUR

63% from 2021 Q2 47% from 2022 Q1

› Net profit – negative 0.686 M EUR*

Vs net loss 0.327 MEUR in 2021 Q2 Vs net loss 0.046 MEUR in 2022 Q1

› Normalized net profit – negative 0.150 MEUR

Vs 0.547 MEUR in 2021 Q2 Vs 0.181 MEUR in 2022 Q1

› Q2 2022 EBITDA margin – 6.55%, normalized net profit margin –2.15%

*Net profitability influenced by non-cash charges: a) Losses from investments in associates b) EIB loan and warrant fair value changes c) Interest related to leases.

Quarterly profitability results, th EUR

Detailed financial results 6m (H1) 2022

Māris Macijevskis, CFO

In 6m 2022 HansaMatrix consolidated revenue amounted to 12.585 MEUR demonstrating 6% increase compared to H1 2021 and 25% increase compared to H2 2022

6m (H1) revenue, th EUR

› Baltic sales – 41% 20% from H1 2021
› Nordic sales – 27% 23% from H1 2021
› The rest of EU sales – 26% 448% from H1 2021
› Outside EU – 6% 64% from H1 2021

6m (H1) revenue by region, th EUR

› Data network products – 31% 40% from H1 2021

› Industrial segment – 48% 59% from H1 2021
› Internet of Things – 13% 149% from H1 2021
› Optics and photonics – 5% 61% from H1 2021

6m (H1) revenue by sector, th EUR

› 6m 2022 EBITDA – 1.238 MEUR

48% from 2021 H1 8% from 2021 H2

› Net profit – negative 0.732 M EUR* Vs net loss 0.281 MEUR in 2021 H1 Vs net loss 1.671 MEUR in 2021 H2
› Normalized net profit – 0.031 MEUR Vs 1.142 MEUR in 2021 H1 Vs 0.023 MEUR in 2021 H2
› 6m 2022 EBITDA margin – 9.84%, normalized net profit margin 0.24%

*Net profitability influenced by non-cash charges: a) Losses from investments in associates b) EIB loan and warrant fair value changes c) Interest related to leases.

6m profitability results, th EUR

Trailing Twelve Months (TTM) results as at the end of Q2 2022

Māris Macijevskis, CFO

TTM revenue, EBITDA and margins, th EUR

TTM (trailing twelve months) period ending Q2 2022 indicator dynamics compared to TTM period ending Q1 2022:

› TTM revenue 22.67 M EUR – 2%
› TTM EBITDA 2.58 M EUR – 22%
› TTM net profit – negative 2.4 M EUR*
› TTM normalized net profit 0.05 M EUR
› TTM EBITDA margin 11.4%

* Includes 1.4 M EUR Zinātnes parks one-off fair value write off and other non-cash charges

Business development and outlook

Jānis Sams, CEO

New agreement signed with leading aquaculture company in Nordics

HansaMatrix as EMS partner for the underwater cameras and complementary equipment

The planned revenue amount 5 million EUR in 3 years; frame order received in amount of 3 million EUR

Supply period from Q3 2022 to Q3 2023

Q2 2022 business development news

Investments

› 0.1 M EUR investments made in Q2 2022
› 0.2 M EUR investments made in H1 2022
› 0.5 M EUR investments planned in Q3/Q4 2022, including the following equipment:

▪ X-ray

Thank You!

Questions

Questions (1)

1. Do you see on-shoring trend i.e. European companies transferring their orders from China to European suppliers? Elaborate.

Answer: Yes this trend could be observed in general in EMS industry, as well as at HansaMatrix, where recently the Group has acquired 2 new customers in industrial and medical sectors seeking to transfer part of outsourced product manufacturing closer to their home geographies.

2. What is your revenue guidance for the full year 2022 in % to 2021 and what share of it is due to price increases?

Answer: Revenue guidance for the full year 2022 is in line with the guidance issued publicly in Q1 2022 in percent expected to be in range from 9-18% (24-26 MEUR). Share of it due to price increases on year over year basis is hard to estimate due to significantly changing product mix.

3. What are the most important factors impacting profitability in the next 12 M?

Answer: Most important include component availability for high added value products, energy prices, wage and salary levels.

Questions (2)

4. What is the biggest risk to sales/revenue in the next 6M?

Answer: In Q2 2022 The Company has started to report manufacturing order book volume, which as at the end of Q2 2022, amounted to 21,8 million EUR, growing by 13% compared to the respective figure as at the end of Q1 2022. So the biggest risks for revenue in next 6M are: a.component availability; b.workforce availability.

5. Why normalized net profit margin is only 0 – what should happen, change to improve that?

Answer: The most significant impact on the margins is related to the manufactured product mix of the Company, as it changes from higher value added products to lower value added products, the margins decrease. Going further, the proportion of higher added value products in revenue is expected to increase when the component availability will improve and the possible workforce capacity limitations will not realize.

6. Why administrative expenses have increased by 22% in Q2 vs 2021 taking into account that during the period revenue was up only 8%.

Answer: Current manufacturing order execution requires additional procurement recourse and increased new product introduction resource, which needs to be adressed to solve redesigns and prototyping, because of component deficit.

Lightspace Technologies business update

August 16, 2022 Ilmars Osmanis, Founder E-mail: [email protected]

Business development

Medical AR headset IG1050-OR1 sales started - several purchase orders has already been shipped
Evaluation projects started with two large MedTechs each of them requires 5 to 10 AR headset units over next 12 months
Lightspace is accepting Purchase Orders with 6…8 weeks lead time
Authorized reseller program started

R&D project news:

European Commission approved Lightspace joint Horizon 2020 project on XR technologies with number of west European parties - SHARESPACE with maximum evaluation score 15
Project evaluation continues with project in InnovateUK.
In August 2022 New R&D funding round has been approved to Latvian Competence Center program.

Funding news:

Pre-listing bridge round funding has extended to 2.4 M EUR
Pre-listing investment round already started in USA and Canada
Interested parties contact at [email protected]

Update on Lightspace listing process:

Chosen trading platform Toronto Stock Exchange http://tsx.com
Listing process expected to be extended to period 9…12 months to complete listing
Lightspace is planning to raise min 10M \$ new capital
Usage of funds business development, ramp up of manufacturing and further development of technology

AI assistant

HansaMatrix Investor Presentation 2022

2239_rns_2022-08-17_099cbe41-85c0-4ed6-a3e0-721c1f362c3d.pdf

Nasdaq Webinar Q2 and 6m (H1) 2022 results

Table of Contents ¹²

Business, operational and financial highlights

Business trends and operations

Q2 2022 financial result summary

Peer company analysis