HansaMatrix — Investor Presentation 2022

Jun 1, 2022

Management Board report to Annual General Meeting of shareholders

2021 audited financial results

May 17, 2022

3 Year 2021 highlights Detailed 2021 financial results Business development and outlook

Year 2021 business, operational and financial highlights

2021 business trends and operations

• Strong and growing demand in data networks and IoT.
• Manufacturing revenue growth constrained by the global component deficit. Semiconductor lead time increase in average 75%.
• Focus on inventory level and cash flow management.
• Business interruption challenges due to Covid-19 pandemic.
• Nearshoring trend.

2021 financial result summary

• 22 MEUR revenue, 3% decrease compared to 2020
• 3.7 MEUR EBITDA, 23% increase compared to 2020, 17% EBITDA margin.
• 0.9 MEUR normalized net profit, 206% increase year over year, 4.23% normalized net profit margin.
• Margins increased compared to 2020, explained by manufactured product mix with more highvalue added products.

Indicator/EUR'000	2020	2021	2021 YoY
Revenue	22 589	21 962	(2.77%)
EBITDA	3 034	3 732	+23%
EBITDA margin	13.43%	16.99%
Net profit	(847)a	952b -1
Normalized net profit	449	928	+206%
Normalized net profit margin	1.99%	4.23%
Earnings per share (EPS)	(0.46)	(1.07)
Diluted EPS	(0.42)	(0.95)

^a – restated due to changes in loss from associated operating vs audited results

b - includes 1.4 M EUR Zinatnes parks one-off fair value write off

Peer company analysis

• HansaMatrix share price undervalued by market: Enterprise Value (EV) to EBITDA multiple 6 versus 12 peer average.
• Value of investment (6.1M EUR as per balance sheet) in Lightspace Technologies currently is not represented in HansaMatrix share price.
• HansaMatrix EBITDA margin second highest among peers 14.9%.

Company/MEUR	Current EV to	TTM	TTM	TTM net	EBITDA	Net profit
	TTM EBITDA	revenue	EBITDA	profit	margin	margin
Incap Oyj	13	170	29.3	21.1	17.3%	12.4%
HansaMatrix AS	6	22	3.3	(2.0)*	14.9%	(9.22%)
Note AB	17	289	35.2	21.4	12.2%	7.4%
HANZA Holding	8	271	25.2	8.8	9.3%	3.3%
Kitron ASA	14	417	36.5	15.1	8.8%	3.6%
Inission AB	9	108	5.9	0.1	5.5%	0.1%

Source: Bloomberg, May 13, 2022, ranked by EBITDA margin

* - includes 1.4 M EUR Zinatnes parks one-off fair value write off

6

Detailed financial results 2021

7

Share performance in 2021

• The highest share price observed during the year was 12.32 EUR, the lowest 8.9 EUR.
• 175 092 shares were traded with value of 1.7 MEUR
• The number of retail investors since AGM in 2019 has increased 9.3 times!

Investor category	31.03.2022		18.05.2021		14.05.2020			02.05.2019
	shares	No	%	Shares	No	%	shares	No	%	shares	No	%
Retail	146 713	1158	8.00	43 549	273	2.38	44 817	168	2.45	43 459	124	2.38
Institutional	1 178 932	152	64.25	1 162 736	35	63.56	1 162 061	40	63.52	887 857	37	48.53
Founder	509 236	1	27.75	623 096	1	34.06	622 503	1	34.03	898 065	1	49.09
Total	1 834 881	1311	100	1 829 381	309	100	1 829 381	209	100	1 829 381	162	100

2021 revenue 21.9 M EUR decreased year over year by 3% due to global electronic component deficit challanges

Revenue, th EUR

30,000

• Baltic sales 52% ✓ 15% up from 2020
• Nordic sales 27% ✓ 19% up from 2020
• The rest of EU sales 6% ✓ 50% down from 2020
• Outside EU 15% ✓ 34% down from 2020

Revenue by region, th EUR

• Data network products 52% ✓ 13% up from 2020
• Industrial segment 31% ✓ 22% down from 2020
• Internet-of-things 8% ✓ 62% up from 2020
• Optics and photonics 5% ✓ 7% down from Q1 2021

Revenue by sector, th EUR

• 2021 EBITDA – 3.7 MEUR

✓ 23% up from 2020

• Net profit negative 1.9 M EUR*
  • ✓ Vs net loss 0.8 MEUR in 2020
• Normalized net profit 0.9 MEUR
  • ✓ 107% up from 2020
• 2021 EBITDA margin 17.0%, normalized net profit margin – 4.2%

* Includes 1.4 MEUR Zinatnes parks one-off fair value write off, losses from associates 0.8M EUR and EIB warrant fair value changes 0.2M EUR

Profitability results, th EUR

Business development and outlook

• 1.1 M EUR investments made in 2021:
  • ✓ 0.5 MEUR Fuji NXT III SMT component placement machine
  • ✓ 0.6 MEUR maintenance CAPEX

HansaMatrix 2021 investments in equipment

Ventspils manufacturing site expansion in 2021

2021 Lightspace Technologies results&business development

Year 2021:

• 0.7 MEUR revenue, 34% increase compared to 2020.
• Work on Medical AR headset IG1050-OR1 develoment and commercialization to release for production in 2022.
• 2.2 MEUR agreement signed to supply 200+ iG1050 to industrial customer in 2022.

Year 2022:

• Medical AR headset IG1050-OR1 has been released.
• Industrial use AR headset IG1050-GP1 has been released.
• Company started small series production of both models.
• Headset shipment orders are being accepted with 6…8 weeks lead time.
• Closed pre-listing bridge round reaching 2.0 M EUR.
• Ongoing Toronto Stock Exchange (http://tsx.com) listing to raise min 10 M\$ new capital.

HansaMatrix guidance for 2022

• Increased demand in data networks and industrial sectors;
• Launching manufacturing for new customers, predominantly in industrial sector in Nordic and other EU countries;
• Higher potential business growth is held back by global semiconductor deficit.