Hexatronic Group — Earnings Release 2024

Feb 7, 2025

······exatronic

Hexatronic Group AB (publ)

Year-end report 2024

Stable end to the year and strong cash flow

Fourth quarter October 1 - December 31, 2024

• Net sales decreased by 2 percent to SEK 1,824 million (1,861). Sales decreased organically by 4 percent.
• · EBITA increased by 7 percent to SEK 182 million (170), corresponding to an EBITA margin of 10.0 percent (9.1).
• · Operating profit (EBIT) increased by 9 percent to SEK151 million (138), corresponding to an operating margin of 8.3 percent (7.4).
• Profit for the period decreased by 55 percent to SEK 87 million (191). Revaluation of the additional purchase price and acquisition option is included with SEK 1 million (151).
• · Earnings per share after dilution amounted to SEK 0.42 (0.94).
• · Net sales in Fiber Solutions increased by 2 percent.
• Net debt / EBITDA (proforma), R12 amounted to 2.2x compared to 1.7x as of December 31, 2023.
• · Cash flow from operating activities amounted to SEK 286 million (462).

Significant events during the quarter

• Hexatronic has completed the acquisition of parts of Icelandic Endor under the letter of intent signed in July. The acquisition adds leading data center expertise and a customer base in Iceland, Sweden, and Germany to Hexatronic.
• Production at Hexatronic's new US facility in USA, started during the quarter. The facility will manufacture HDPE pipes for . telecom and power cables and primarily serve customers in the western United States.

Significant events since the end of the quarter

• Hexatronic Group's Board of Directors has appointed Rikard Fröberg as the new President and CEO, effective March 1, 2025. He succeeds Henrik Larsson Lyon who will leave the company on 8 February. The Board has appointed Deputy CEO Martin Aberg as acting CEO of Hexatronic Group until Rikard Fröberg assumes the lead.
• Hexatronic introduces new segment reporting as of the first quarter of 2025 and make changes to the Executive Management Team.
• The Board of Directors proposes to the Annual General Meeting that no dividend will be distributed for the financial year 2024.

	Q4			Full year
SEK m	2024	2023	Δ %	2024	2023	△%
Net sales	1,824	1,861	-2%	7,581	8,150	-7%
EBTA	182	170	7%	803	1,234	-35%
EBITA-margin	10.0%	9.1%		10.6%	15.1%
Operating profit (EBIT)	151	138	9%	680	1,122	-39%
Profit for the period	87	191	-55%	344	846	-59%
Earnings per share after dilution, SEK	0.42	0.94	-56%	1.69	4.17	-59%
Cash from operating activities	286	462		921	944
Cash and cash equivalents	୧33	813	-22%	633	813	-22%

COMMENTS FROM THE CEO

Stable end to the year and strong cash flow

Hexatronic had a solid end to 2024. The Group's sales decreased by 2 percent in the fourth quarter compared to the previous year. This is primarily a consequence of Harsh Environment having a record quarter in the fourth quarter of last year when a large delivery to the defense industry had a positive impact. Sales in Fiber Solutions increased by 2 percent compared to the previous year, which is pleasing. Although there is still weak demand and price pressure in most markets in Fiber Solutions, we have seen signs of some stabilization towards the end of the year. Data Center developed in line with the previous vear.

Seasonally weaker quarter

Despite the continued weak markets and price pressure in Fiber Solutions, we report stable profitability for the Group. The EBITA margin amounted to 10.0 percent in the fourth quarter, compared to 9.1 percent in the previous year (the adjusted EBITA margin was 10.7 percent in the fourth quarter of 2023). Internal efficiency improvements and good cost control have offset higher freight costs, start-up costs related to the new factory in Utah, and increased depreciation.

Compared to the previous quarter, both sales and earnings decreased in the fourth quarter partly due to a return to seasonality in Fiber Solutions. This development is in line with the outlook we presented in the previous quarterly report.

Fiber Solutions shows growth again

Overall, Fiber Solutions' sales increased by 2 percent in the fourth quarter compared to the corresponding quarter last year, mainly driven by growth in Europe and APAC.

In Europe, we have a strong position in FTTH systems and have, during the quarter, been successful in securing new business in Germany, Austria, and the UK. Although most markets continue to be characterized by weak demand and price pressures, we have seen signs of stabilization towards the end of the year.

Sales in APAC developed strongly during the quarter, primarily due to higher sales in Australia and a larger order in Micronesia.

We continue to see good demand in the US market. There is growing interest in our cost-effective and flexible FTTH system among US customers. In duct sales, we see that the market has stabilized although there is continued price pressure, which is a trend we expect to persist in the coming quarters.

At the beginning of October, our new duct factory opened in Utah. Production started on a small scale in the fourth

quarter as planned. The factory is our fourth duct factory in the US and complements our offer geographically through proximity to customers in the western US, which means that we are now well positioned as one of the few suppliers of a nationwide offering in the US. In December, we also received certification from the US agency NTIA, which means we are qualified as a duct supplier to customers seeking government funding under the BEAD program.

In Sweden, sales decreased by 12 percent compared with the previous year. which is explained by the fact that we delivered a major submarine cable project last year. Fiber Solutions in Sweden, excluding submarine cables, showed good growth.

New focus areas in line with the previous quarter

Sales in Data Center increased by 1 percent compared to the previous year, driven by acquisitions, while sales in Harsh Environment decreased by 20 percent. Harsh Environment had a record quarter last year with a large defense order in North America that positively impacted sales, explaining the year-on-year decline.

Sales in Harsh Environment are sequentially in line with the third quarter's development. The market for subsea cable is characterized by long customer relationships and a high degree of customer-specific products.

In Data Center, sales are sequentially in line with the previous quarter. In early October, the acquisition of parts of Icelandic Endor was completed. Although it is a smaller business, it adds important expertise and an attractive customer base to our existing data center offering. We are also strengthening our presence in Iceland, Sweden, and Germany.

Together, the new focus areas account for 28 percent of the Group's sales in the fourth quarter.

Our acquisition agenda for the coming years primarily focuses on strengthening our offering and presence in Harsh Environment and Data Center. We currently have an interesting pipeline of potential acquisition candidates.

Strong operating cash flow and lower debt

We continue to have good financial flexibility for long-term value creation. During the fourth quarter, our interestbearing net debt (i.e. excluding IFRS 16) continued to decrease and amounted to SEK 1,880 million at the end of December 2024, compared to SEK 1.922 million at the end of September. We reported a strong operating cash flow during the quarter, with a cash conversion of 150 percent.

Interest-bearing net debt to EBITDA on a rolling twelve month basis, reflecting our bank covenants, decreased from 2.0 to 1.9 times during the quarter. Including IFRS 16. this corresponds to a decrease from 2.3 to 2.2 times EBITDA during the quarter.

Segment reporting and management changes

By taking the next step and introducing new segment reporting according to three distinct business areas - Fiber Solutions, Harsh Environment, and Data Center - we will have further power to drive our strategic growth plan and strengthen our market presence. It also contributes to increased transparency, which together with the management changes being implemented increases focus and clarity in the organization based on our prioritized growth areas.

Outlook for the first quarter and beyond

In Fiber Solutions, we have seen a return to the seasonal variations that prevailed before the pandemic, i.e., lower activity in the first and fourth quarters due to winter conditions. Looking ahead, we note cautious signs of increased market activity, although the price pressure that characterized last year is likely to remain. Overall, we are cautiously optimistic about 2025 and see signs of increased demand in several countries, although there is some uncertainty due to geopolitical factors.

In the long term, we see strong underlying structural trends that support the continued expansion of fiber optic systems globally. The positive drivers that are expected to contribute to a gradually better market situation are primarily lower interest rates, but also the increased digitization, which requires large investments in fiber optic infrastructure.

The government investment program in the US, BEAD, is expected to be an essential driver for primarily our US duct business for many vears to come. The program continues to make progress and is expected to start reaching the market in the second half of this year and become more significant in 2026.

If the US administration implements tariffs on import on telecom materials, our exposure is very limited. Nearly all of our products sold in the US market are produced in the US.

For our new focus areas, Harsh Environment and Data Center, we believe that the market will remain strong for a long time to come, mainly driven by investments in defense, energy, and AI.

The order book at the end of the fourth quarter corresponded to approximately 2.5 months of sales, where we estimate a normalized order book to be 2 to 3 months.

Finally, I would like to take the opportunity to extend a warm thank you to all of you who follow Hexatronic, both old and new shareholders. Hexatronic is today a significantly larger, stronger, and more diversified company than before the pandemic and well-positioned to take the next step on the growth journey. For me personally, after ten years, it feels like a good time to step down as CEO. I am delighted to hand over to Rikard Fröberg, who, as of March 1, will be the new CEO of Hexatronic and lead the future growth journey.

Henrik Larsson Lyon

President and CEO Hexatronic Group AB (publ)

The Group

Fourth quarter October 1 - December 31, 2024

Net sales and growth

The Group's net sales during the fourth quarter decreased by 2 percent to SEK 1,824 million (1,861). Sales in the quarter decreased organically by 4 percent, primarily due to the focus area Harsh Environment having the corresponding quarter of the previous year, when a large order to the defense industry had a positive impact on sales. Growth from acquisitions amounted to 1 percent, attributable to MConnect and Endor. Currency effects in the quarter amounted to 1 percent.

In the quarter, net sales in Rest of Europe increased by 6 percent compared to the corresponding period last year. Despite continued weak markets and price pressure, we were successful during the quarter in securing new business, including in Germany, Austria, and the UK. Net sales in North America decreased by 13 percent in the quarter, primarily because of lower sales in Rochester Cable, which faces tough comparatives with last year's record quarter. The quarter was further impacted by continued price pressure in duct sales in the US, at the same time interest in our FTTH-system is growing. In APAC, net sales increased by 19 percent, owing to higher sales in Australia and a larger order in Micronesia. Net sales in Sweden decreased by 12 percent due to major submarine cable orders delivered in the corresponding quarter of the previous year.

Net sales in Fiber Solutions increased by 2 percent in the fourth quarter compared to the corresponding quarter last year. The increase is related to growth in Rest of Europe, where we continue to experience weak demand and price pressure but have seen signs of stabilization towards the end of the year. Net sales in Harsh Environment decreased by 20 percent compared to the corresponding quarter last year, which is explained by Rochester cables' record quarter last year. Net sales in Data Center increased by 1 percent compared to the corresponding quarter last year, which is entirely driven by the acquisition of Endor.

Analysis of change in	Q4			Q4
net sales (SEK m)	2024		(%)	2023	(%)
Previous year's quarter	1,861			1,795
Organic growth	-72		-4%	-406	-23%
Acquisitions and structural changes	23		1%	435	24%
Exchange-rate effects	13		1%	રૂદિ	2%
Current quarter	1,824		-2%	1,861	4%
		Q4		Allocation	Growth
Geographical net sales (SEK m)		2024		(%)	(%)
Sweden		154		8%	-12%
Rest of Europe		862		47%	6%
North America		625		34%	-13%
APAC and Rest of the world		184		10%	19%
Total		1,824		100%	-2%
		Q4		Allocation	Growth
Net Sales focus areas (SEK m)		2024		(%)	(%)
Fiber Solutions		1,320		72%	2%
Harsh Environment		272		15%	-20%
Data Center		233		13%	1%
Total		1,824		100%	-2%

EBITA

EBITA increased'7 percent to SEK182 million (170) in the quarter, corresponding to an EBITA margin of 10.0 percent (9.1). Internal efficiency improvements and good cost control have offset higher freight costs related to the new factory in Utah. and increased depreciation. In the fourth quarter of last year, restructuring to SEK 29 million was accounted for, related to the savings programme implemented at the beginning of 2024. Adjusted for these costs, the EBTTA margin for the fourth quarter of 2023 amounted to 10.7 percent.

Financial items

Net financial items during the quarter amounted to SEK-25 million (81), whereof net interest amounted to SEK-40 million (-49). realized and unrealized foreign exchange differences to SEK 12 million (-20), and other financial items to SEK 3 million (151). Other financial items include revaluation of the additional purchase price and acquisition option of SEK 1 million (151). The change compared to the previous year is mainly explained by a revaluation linked to the additional purchase price for KNET in the fourth quarter of 2023.

Result

Profit for the period for the fourth quarter amounted to SEK 87 million (191) and earnings per share after dilution decreased by 56 percent to SEK 0.42 (0.94). Tax for the quarter was SEK -39 million (-28), and the average effective tax rate for the Group was 30.9 percent (12.9) in the quarter. During the quarter, the effective tax rate was negatively affected by non-deductible interest, while the effective tax rate in the corresponding quarter of the previous year was positively affected by non-taxable income related to the revaluation of additional purchase prices.

Net sales (SEK m) and EBITA-margin (%) since 2019, rolling twelve months

Cash flow and investments

Cash flow from operating activities during the quarter amounted to SEK 286 million (462), including capital of SEK 95 million (259). Working capital was mainly affected by decreased accounts receivable due to the continued focus on streamlining the process of collecting payments from customers. In addition, the group's inventories also decreased, however, this was offset by lower accounts payable.

During the quarter, cash flow from the Group's investing activities amounted to SEK-120 million (-125). Investments in intangible and tangible fixed assets amounted to SEK-85 million (-68), mainly driven by capacity investments in the US primarily related to the opening of the duct factory in Utah. The cash flow effect related to business acquisition of acquired cash and cash equivalents amounted to SEK -35 million (-58). The amount mainly refers to the payment of an additional purchase price for the acquisition of FOS & OSA and the purchase price linked to the acquisition of Endor.

During the quarter, cash flow from the Group's financing activities amounted to SEK-220 million (-77). The change is mainly explained by the amortization of loans and RCF utilization of SEK -186 million (-51) and amortization of SEK -34 million (-25). During the fourth quarter of last year, the existing revolving credit facilities were refinanced to SEK 452 million and was reported gross as borrowings and amortization in the cash flow for the quarter amounted to SEK -55 million (260).

Full Year January 1 - December 31, 2024

Net sales and growth

The Group's net sales during the full year decreased by 7 percent to SEK 7,581 million (8,150). Sales in the full year decreased organically by 13 percent, primarily due to weaker sales for Fiber Solutions in Germany, the UK, and the US. Growth from acquisitions amounted to 6 percent and is attributable to Fibron Cable, Rochester Cable, USNet, ATG, MConnect and Endor. Currency effects during the full year amounted to 0 percent.

During the full year, net sales in Rest of Europe decreased by 10 percent compared to last year. The weaker development is mainly related to Germany and the UK, whose markets were affected by weaker demand and price pressure during the year. To some extent, the decline has been offset by strong sales in Fibron Cable has contributed positively during the year and in line with our expectations. During the full year, North America showed a negative sales development of 4 percent. The US duct sales were affected by price pressure, which was partly offset by increased sales within our fiber connections to the home (FTTH) business in the US, as well as both organic and acquisition-driven growth through the companies in our focus areas Harsh Environment and Data Center. In APAC and Rest of the world, net sales decreased by 1 percent, mainly due to alarger submarine cable project last year, partly offset by higher sales in Australia and a couple of large orders in Micronesia. Net sales in Sweden decreased by 9 percent, where we saw slightly in the FTTH market during the year and a larger submarine cable order was delivered in the last quarter of 2023.

Net sales in Fiber Solutions decreased by 17 percent compared to the previous year. The decrease is mainly explained by a weaker market due to high financing costs and cost inflation. Net sales in Harsh Environment grew 51 percent compared to last year. The increase is driven by the companies Rochester Cable and Fibron Cable, which were acquired in 2023. Net sales in Data Center increased by 19 percent compared to last year. Growth is driven by both organic growth and the acquisitions of USNet and Endor.

Analysis of change in	Full year		Full year
net sales (SEK m)	2024	(%)	2023	(%)
Previous year	8,150		6,574
Organic growth	-1,071	-13%	-172	-3%
Acquisitions and structural changes	528	6%	1,454	22%
Exchange-rate effects	-26	0%	294	4%
Current period	7,581	-7%	8,150	24%

Geographical net sales	Full year	Allocation	Growth
(SEK m)	2024	(%)	(%)
Sweden	630	8%	-9%
Rest of Europe	3,440	45%	-10%
North America	2,833	37%	-4%
Rest of the world	679	9%	-1%
Total	7,581	100%	-7%

Net Sales	Full year	Allocation	Growth
(SEK m)	2024	(%)	(%)
Fiber Solutions	5.510	73%	-17%
Harsh Environment	1,100	15%	51%
Data Center	971	13%	19%
Total	7.581	100%	-7%

EBITA

EBITA decreased 35 percent to SEK 803 million (1,234) in the full year, corresponding to an EBITA margin of 10.6 percent (15.1). The lower EBITA margin is affected by weaker sales and price pressure in several markets, as well as lower capacity utilization in our factories, resulting in higher operating costs in relation to revious year, restructuring costs amounting to SEK 29 million was accounted for, related to the savings programme implemented at the beginning of 2024.

Financial items

Net financial items in the full year amounted to SEK -179 million (-1), whereof net interest amounted to SEK -184 million (-159), realized and unrealized foreign exchange differences to SEK 13 million (-12) and other financial items to SEK -7 million (171). Other financial items include revaluation of the additional purchase price and an acquisition option of SEK -4 million (179). Compared to the previous year, the change is primarily due to a revaluation of the additional purchase price in KNET in 2023.

Result

Profit for the full year amounted to SEK 344 million (846) and earnings per share after dilution decreased by 59 percent to SEK 1.69 (4.17). Tax for the full year was SEK -157 million (-275), and the average effective tax rate for the Group was 31.4 percent (24.5) for the period. The effective tax rate during the full year was negatively affected by non-deductible interest, while the effective tax rate in the previous year was positively affected by non-taxable income in the form of revaluation of additional purchase prices.

Cash flow and investments

Cash flow from operating activities during the full year amounted to SEK 921 million (944), including a change in working capital of SEK 213 million (-156). Due to higher activity in our factories during the year, accounts payable have increased compared to yearend 2023. At the same time, cash flow has been positively affected by lower accounts receivable, which is explained by lower sales compared to the previous year, as well as continued focus on streamlining the process of handling customer payments.

During the full year, cash flow from the Group's investing activities amounted to SEK-508 million (-1,426). Investments in intangible and tangible fixed assets amounted to SEK -325 million (-518), mainly driven by capacity investments in the US. Cash flow effect related to business combinations after deduction of acquired cash and cash equivalents amounted to SEK -171 million (-907) and relates to payment of additional purchase price linked to the acquisition of Fibron Cable, USNet, FOS & OSA, ATG and the exercise of the acquisition option linked to Qubix. During the acquisitions of MConnect, Endor, as well as a minor investment in a joint venture company also affected the cash flow.

During the full year, cash flow from the Group's financing activities amounted to SEK -613 million (769). The change is mainly explained by the amortization of loan and utilised RCF of an amount of SEK -556 million (-236), amortization of lease liabilities SEK -133 million (-92), sales of shares linked to the incentive programme SEK 12 million (0) and subscription of shares related to employee stock option programme SEK 63 million (16). During the previous year, the existing revolving credit facilities were refinanced, which amounted to SEK 452 million and was reported gross as borrowings and amortization in the cash flow.

Total cash flow in the full year amounted to SEK -200 million (288).

Financial position

The Group's net debt amounted to SEK 2,438 million at the reporting period, compared to a net debt of SEK 2,678 million as of December 31, 2023. The leverage (net debt / EBITDA (pro forma), R12) as of December 31, 2024, amounted to 2.2x, compared to 1.7x as of December 31, 2023.

The Group's interest-bearing net debt, which corresponds to net debt excluding lease liabilities, amounted to SEK 1,880 million as of December 31, 2024, compared to SEK 2,111 million on December 31, 2023.

Available funds on December 31, 2024, including unutilized credit facilities, amounted to SEK 1,889 million, compared to SEK 1,732 million as of December 31, 2023.

Equity

As of December 31, 2024, equity amounted to SEK 4,057 million, corresponding to SEK 19.75 per outstanding share at the end of the reporting period before dilution, compared to equity of SEK 3,438 million as of December 31, 2023.

Employees

On December 31, 2024, the group had 1,967 employees in the Group on December 31, 2024, compared with 1,961 employees as of December 31, 2023.

Parent company

The Parent Company's main business consists of performing Group-wide services. Revenue for the full year amounted to SEK 140 million (121) and the result after financial items was SEK 2,064 million (-40). The change compared to the previous year is mainly explained by a capital gain related to changes in the subsidiaries within the group. Short-term liabilities. primarily consisting of internal cash pool debts, are currently funded through the internal cash pool but will increasingly be funded through dividends and group contributions going forward.

The market

The buildout of fiber optic infrastructure is crucial to supporting modern life's digital demands, driving economic growth, and preparing for future technological advancements. As data volumes continue to rise, the need for fiber network investment has become increasingly apparent, and the major buildout of data centers is emerging as a key indicator of this trend.

The FTTH rollout continues steadily, and several government initiatives in Hexatronic's strategic growth markets are expected to support the continued expansion of fiber optic infrastructure in the coming years. FTTH Council FTTH/B Market Panorama and Global ranking data on penetration rate from September 2023 shows that the share of households subscribing to a service through FTTH/FTTB is still low in Germany (10 percent) and the US (24 percent). At the same time the total number of households in these countries is high, indicating significant potential. According to FTTH Council Europe and RVA's forecasts, 120 million households in Germany, the UK, and the US are predicted to have access to fiber-optic connectivity by 2028. In mature markets. Ilke Sweden, which has a penetration rate of 70 percent, effort is put into maintaining and improving existing infrastructure and upgrading transport networks. The need for long-haul transport networks constantly increases worldwide as new networks are established and existing ones are enhanced. The Hexatronic offering brings cost-efficient end-to-end solutions to any fiber optic project, from backbone networks to drop connections, to support the market needs ahead.

Accelerated digitalization has led to a booming Data Center market. The rapid rise of Al, high-performance computing, and capacity demands from cloud service providers are key factors behind the quick growth. The market can be divided into the segments hyperscale, enterprise, and colocation. The demand for hyperscale data centers is growing fastest - the highperformance computing in these data centers can power Al and its applications. As an alternative to enters, many companies now seek colocation facilities to reduce costs, while maintaining control and ownership of the massive buildout of data centers worldwide, structured cabling and data center expertise on installation and relocation are sought after. Sustainable and innovative solutions will likely be essential to succeed in the energy-consuming data center market.

In Harsh Environment, the energy and defense markets increase rapidly. The energy sector drives a significant buildout of offshore infrastructure. Some of the world's largest countries turn to the ocean to increase energy generation from renewables. As the sector expands offshore, there is a massive demand for underwater robots or ROVs to manage the buildout and maintenance of the

underwater infrastructure. The ROVs, in turn, depend entirely on dynamic cables bringing power, hydraulics, and fiber connections to get the job done. Given the renewed unrest in the defense market continues the expansion. Especially aviation and marine applications are demanding sophisal sensing and communication systems. Furthernore, there is a rising acceptance of optical solutions for industrial applications, indicating potential ahead.

Seasonal variations

Hexatronic's sales of products and services in Fiber Solutions are affected by seasonal variations. This means that sales during the first and fourth quarters of the vear are usually lower than during the summer months when weather conditions are more favorable for groundwork. Sales in Harsh Environment are unaffected by seasonal variations, while Data Center has slightly in the fourth quarter due to holidays.

Acquisitions

Acquisitions during the quarter

Company	Country	Consolidated from	Acquired share, %	EBITDA™	Number of employees
Endor	Iceland	2024-10-01	100%	Not significant	ব

Acquisitions during the year

			Acquired		Number of
Company	Country	Consolidated from	share, %	EBITDA™	employees
MConnect, Ltd	UK	2024-02-02	97%	Not significant	വ
SH Connectivity	South Korea	2024-02-06	50%	N/A
Endor	lceland	2024-10-01	100%	Not significant	ব

1) Last reported full year

Acquisitions after the end of the quarter

There were no acquisitions after the end of the period.

Sustainability

Hexatronic aims to be at the forefront of creating sustainable solutions within fiber infrastructure for segments such as telecom, energy storage, and energy. Enabling non-stop connectivity helps accelerate digital transformation, which is key to solving many of today's challenges and builds the foundations for greener, smarter, and safer societies.

Our three sustainability focus areas are Planet, People, and Ethics. These areas form the basis of our 2030 Sustainability Roadmap. For us to succeed, we ensure that sustainability is an integrated part of our company culture leads the way. We engage and collaborate to find the best solutions and increase awareness through training, and sharing best practices.

We are proud and active members of several national, European, and global sustainability organizations. As participants in the Global Compact, we commit to following the Ten Principles of the United Nations (UN) Global Compact and contributing to Agenda 2030. Each sustainability focus area with related goals and metrics is connected to the Sustainable Development Goals and the Ten Principles. We are committed to facilitation and driving sustainability in our field as a member of the FTTH Sustainability Committee, which compiles in deploying fiber networks and drives climate action in the FTTH value chain.

Read about Hexatonic's targets, activities, and progress in our Annual and Sustainability Report 2023.

Other information

Nature of operations

Hexatronic Group AB (publ) is a technology group specializing in fiber infrastructure. The Group strongly focuses on complete solutions with associated support and training and operates in the business areas of Fiber Solutions, Harsh Environment, and Data Center.

The Group develops, designs, manufactures, and system solutions combined with products from leading partners. Hexatronic is customer-centric and has a local presence worldwide, with the key strategic markets of North America, Germany and the UK. Guided by the 2030 Sustainability Roadmap, Hexatronic actively integrates the three prioritized sustainability areas, Planet, People, and Ethics, in the business.

All amounts are presented in million Swedish kronor (SEK million) unless otherwise stated. The figures in parentheses refer to the previous year. Totals are based on integer numbers (kronor).

Customers

The Group's customers are mainly wholesalers, telecom companies, telecom companies, installers, and system houses, defense companies and co-location operators for data center and hyperscales.

Share structure

The company's share is listed on Nasdaq Stockholm Main Market, in the Mid Cap segment. At the end of the period the share capital amounted to SEK 2 million.

Class of shares	Number of shares	Number of votes	Percentage of capital	Percentage of votes
Ordinary share, 1 vote per share	205.472.710	205,472,710	98.6%	99.9%
Class C share, 1/10 vote per share	2,862,036	286.204	1.4%	0.1%
Total number of shares before repurchases	208,334,746	205.758.914	100%	100%
Repurchased class C shares	-2.862.036		1.4%	0.1%
Total number of shares after repurchases	205,472,710

Employee stock option programmes active at the time of this publication are:

Outstanding warrant programme	Number of warranties	Corresponding Number of shares	Proportion of total Shares	Exercise price	Expiration period
Warrant programme 2022/2025	463.000	463.000	0.2%	96.96	15 May - 15 Jun -25
Warrant programme 2023/2026	377,500	377,500	0.2%	96.20	15 May - 15 Jun -26
Warrant programme 2024/2027	387.500	387.500	0.2%	55.30	13 May - 13 Jun -27
Total	1.228.000	1,228,000	0.6%

In addition to above warrant programmes, there are three ongoing long-term, performance-based incentive plans (LTIP 2022, 2023 and 2024) for 47 senior executives and other key employees in the Group who are resident in Sweden. The participants have invested 234,220 savings shares in total.

Under the LTIP, for each acquired Hexatronic share), participants can receive 2-6 shares in Hexatronic (performance shares) free of charge, assuming achievement of certain performance targets. To qualify for performance shares, participants must acquire and retain a number of Hexatronic shares for the three-year vesting period and must, with some exceptions, remain in employment during the same period. In addition to the above conditions, performance shares also require certain performance targets to be met, linked to the development of the earnings per share after dilution, the Group's growth, EBITA margin and certain sustainability targets.

The targets relate to the 2022-2026 financial years. Hexatronic has judged that all the above conditions are non-market related conditions under IFRS 2.

Ownership structure

The company's market value at the period was SEK 7,434 million. Based on data from Monitor of Modular Finance AB and subsequent known changes, the number of shareholders was 57,752 at period end. Thelargest shareholder of Hexatronic Group AB (publ) on December 31, 2024, is shown in the table below.

Shareholder	No. of ordinary shares	Votes %
Handelsbanken Funds	16,326,455	8.0%
Accendo Capital	12,207,134	6.0%
Jonas Nordlund, privately and corporately	11,052,162	5.4%
AMF Pension & Funds	10,912,265	5.3%
Third AP fund	8,236,450	4.0%
Chirp AB	7,138,503	3.5%
Vanguard	6,810,775	3.3%
Avanza Pension	5,016,375	2.5%
Henrik Larsson Lyon	4,139,592	2.0%
Futur Pension	3,442,636	1.7%
Other shareholders	120,190,363	58.3%
Total outstanding shares	205,472,710	100.0%

Transactions with related parties

The Group rents premises from Fastighets AB Balder, in which the Group's board member Erik Selin has a significant influence. The rental contract has been entered under normal conditions. The rent for the premises amounts to approximately SEK 6 million annually.

Significant risks and uncertainties

Like all business activities, Hexatronic's associated with risks of various kinds. Continually identifying and assessing risks is a natural and integral part of the operation, enabling risks to be controlled, limited and managed proactively. The Group's ability to map and prevent risks minimises the likelihood of unpredictable events having an adverse impact on the business. The aim of risk management is not necessarily to eliminate the risk, but rather to safeguard set business goals with a balanced risk portfolio. Mapping, planning and management of identifiable risks supports the management in making strategic decisions. Risk assessment also aims to increase the entire organisation's risk awareness.

Several risk areas have been identified in Hexatronic's risk management process. Hexatronic has divided identified risks into operational risks, market risks. A more detailed description of the Group's risks and risk management is provided in the Hexatronic Group Annual Report for 2023, pages 70-75.

Fiber optic networks are a critical infrastructure, and the degree of expansion is still low in many countries, such as the US, Germany and the UK. Therefore, we see strong underlying structural trends supporting global build-out. Primarily privately financed projects but also projects financed by subsidies from several government investment as the BEAD program in the US, Gigabit Strategy in Germany and Project Gigabit UK. Similar programs exist in most countries. Should the willingness to invest in fiber optic networks decrease, for example, as a result of increased costs and/or reduced government investment programs, this could affect Hexatronic's business and, thus, future revenues.

Accounting policies

The consolidated financial statements for Hexatronic") have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU, RFR 1 Supplementary Accounting Rules for Groups and the Swedish Annual Accounts Act. This year-end report has been prepared in accordance with IAS 34 Interim Reporting, the Swedish Annual Accounts Act and RFR 1 Supplementary Accounting Rules for Groups.

The Parent Company's financial statements have been prepared in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities. The application of RFR 2 means that in its year-end report for the legal entity, the Parent Company applies all IFRS and statements adopted by the EU as far as possible within the framework of the Swedish Annual Accounts Act and regarding the relationship between accounting and taxation.

For full accounting policies, see the Annual Report for 2023.

Review

This year-end report has not been reviewed by the company's auditor.

Gothenburg, 2025-02-07

Henrik Larsson Lyon President and CEO Hexatronic Group AB (publ)

Presentation of the year-end report

Hexatronic will present the year-end report at a webcast conference call today, February 7, 2025, at 10:00 CEST. CEO Henrik Larsson Lyon, CFO Pernilla Lindén and Deputy CEO Martin Aberg will participate.

Link to the webcast:

https://hexatronic-group.events.inderes.com/q4-report-2024

Please direct any questions to:

Henrik Larsson Lyon, President and CEO, + 46 (0)70-650 34 00

Pernilla Lindén. CFO + 46 (0)70-877 58 32

Pernilla Grennfelt, Head of Investor Relations +46 (0)70 290 99 55

For further information, visit https://www.hexatronic.com/en/investors

Annual General Meeting 2025

The Annual General Meeting 2025 in Hexatronic Group AB (publ) will be held on Monday, May 5, 2025, at CEST 15:00, at Gothia Towers, Mässans gata 24 in Gothenburg.

Shareholders wishing to have a matter considered at the Annual General Meeting must submit a written request to the Board of Directors by sending an e-mail to agm@hexatronic.com (with the subject line "To the Board of Directors"). Such requests must be received by the Board no later than March 18, 2025.

Calendar

	March 28, 2025 Digital investor presentation
April 29, 2025	Interim report January - March 2025
May 5, 2025	Annual General Meeting 2025
July 14, 2025	Half year report 2025
	October 24, 2025 Interim report January - September 2025
	February 5, 2026 Year-end report 2025

This is a translation of the Swedish version of the interim report. When in doubt, the Swedish wording prevails.

This is information that Hexatronic Group AB (publ) is obliged to make public pursuant to the Market Abuse Regulation. The information was submitted for publication through the agency of the contact person set out above on February 7, 2025 at 07.00 CEST.

Consolidated income statement

(SEK m)	2024	2023	2024	2023
	Q4	Q4	Full year	Full year
Revenue
Net sales	1,824	1,861	1,581	8,150
Other operating income	25	21	77	90
Total	1,850	1,881	7,658	8,240
Operating expenses
Raw materials and goods for resale	-1,069	-1,108	-4,413	-4,646
Other external costs	-199	-222	-854	-025
Personnel costs	-314	-292	-1,251	-1,147
Other operating expenses	-9	-21	-41	-60
Depreciation of tangible assets	-76	-69	-297	-228
Earnings before amortisation of intangible assets (EBITA)	1892	170	803	1,234
Amortisation of intangible assets	-31	-31	-123	-113
Operating profit (EBIT)	151	138	680	1,122
Result from financial items
Financial items, net	-25	81	-179	-1
Result after financial items	126	220	501	1,121
Income taxes	-39	-28	-157	-275
Profit for the period	87	191	344	846
Attributable to:
Parent Company shareholders	86	191	346	848
Non-controlling interest	1	0	-1	-2
Profit for the period	87	191	344	846
Earnings per share
Earnings per share before dilution (SEK)	0.42	0.94	1.69	4.18
Earnings per share after dilution (SEK)	0.42	0.94	1.69	4.17
	2024	2023	2024	2023
Consolidated statement of comprehensive income	Q4	Q4	Full year	Full year
Profit for the period	87	191	344	846
Items which can later be recovered in the income statement
Translation differences	200	-331	300	-196
Hedging of net investments	-99	119	-142	ട്ടു
Tax attributable to items that can be returned to the income statement	20	-24	29	-14
Other comprehensive income for the period	121	-236	187	-142
Comprehensive income for the period	208	-45	532	704
Attributable to:
Parent Company shareholders	207	-43	532	706
Non-controlling interest	1	-2	O	-2
Comprehensive income for the period	208	-45	532	704

Consolidated balance sheet

Note (SEK m)		2024-12-31	2023-12-31
Assets
Non-current assets
Intangible assets		3,041	2,978
Tangible assets		2,501	2,279
Financial assets		66	5
Total non-current assets		5,608	5,263
Current assets
Inventories		1,442	1,393
Account receivables		1,121	1,124
Other receivables		13	25
Prepaid expenses and accrued income		146	116
Cash and cash equivalents		633	813
Total current assets		3,355	3,470
TOTAL ASSETS		8,962	8,733
Equity		4,057	3,438
Non-current liabilities
Liabilities to credit institutions	4	2,361	2,774
Deferred tax		276	248
Non-current lease liabilities		425	476
Other non-current liabilities	5	352	304
Total non-current liabilities		3,413	3,803
Current liabilities
Liabilities to credit institutions	4	152	150
Current lease liabilities		132	91
Accounts payable		679	510
Provisions		34	દિવે
Current tax liabilities		57	88
Other liabilities	5	91	249
Accrued expenses and deferred income		345	347
Total current liabilities		1,491	1,493
TOTAL EQUITY, PROVISION AND LIABILITIES		8,962	8,733

Consolidated statement of changes in equity

(SEK m)	Share Capital	Other capital contri- butions	Reserves	Hedging reserve	Result brought forward, including profit for the period	Total	Non- controlling interests	Total equity
Balance brough forward as of 1 January 2023	2	038	325	0	1,503	2,768	37	2,805
Profit for the period					848	848	-2	846
Other comprehensive income			-196	54		-142	0	-142
Total comprehensive income	0	0	-196	54	848	106	-2	704
New shares related to employee stock option programme		16				16		16
Employee stock option programme		5				5		5
Share-based remuneration	0				8	8		8
Repurchase of shares					-81	-81		-81
Dividend paid					-20	-20		-20
Non-controlling interest on acquisition of subsidiary					0	0	0	0
Total transactions with shareholders, reported directly in equity	0	21	0	0	-93	-72	0	-12
Balance carried forward as of 31 December 2023	2	959	129	54	2,258	3,402	35	3,438
Balance brought forward as of 1 January 2024	2	959	129	54	2,258	3,402	35	3,438
Profit for the period					346	346	-1	344
Other comprehensive income			299	-112		186	1	187
Total comprehensive income	0	0	299	-112	346	532	0	532
New shares related to employee stock option programme	0	દિર				ез		ез
Employee stock option programme		4				4		4
Share-based remuneration	0				9	ರಿ		9
Sale of shares linked to incentive programme					12	12		12
Total transactions with shareholders, reported directly in equity	0	68	O	O	21	88	O	88
Balance carried forward as of 31 December 2024	2	1,027	428	-28	2,624	4,022	35	4,057

Consolidated statement of cash flow

	2024	2023	2024	2023
Note (SEK m)	Q4	Q4	Full year Full year
Operating profit	151	138	680	1,122
3 ltems not affecting cash flow	95	132	401	409
Interest received	5	1	12	8
Interest paid	-40	-46	-175	-156
Income tax paid	-21	-23	-211	-282
Cash flow from operating activities before changes in working capital	190	203	708	1,100
Increase (-)/decrease (+) in inventories	44	258	-9	329
Increase (-)/decrease (+) in accounts receivable	160	291	76	26
Increase (-)/decrease (+) in operating receivables	20	22	8	-4
Increase (+)/decrease (-) in accounts payable	-87	-222	169	-391
Increase (+)/decrease (-) in operating liabilities	-41	-90	-30	-116
Cash flow from changes in working capital	95	259	213	-156
Cash flow from operating activities	236	462	997	944
Investing activities
Acquisition of tangible and intangible assets	-85	-68	-325	-518
Acquisition of subsidiaries after deduction of acquired cash and cash equivalents	-35	-58	-171	-907
Change in financial assets			-12
Cash flow from investing activities	-120	-125	-208	-1,426
Financing activities
Borrowings		452		1,635
Amortisation of loans	-186	-203	-556	-688
Amortisation of lease liabilities	-34	-25	-133	-92
Sale of shares			12
Repurchase of shares				-81
New shares related to employee stock option programme			ട്ടി	16
Dividend paid				-20
Cash flow from financing activities	-9220	-77	-6 (3	ા ઉત્પે
Cash flow for the period	-55	260	-200	288
Cash and cash equivalents at the start of the period	676	595	813	552
Exchange rate difference in cash and cash equivalents	12	-42	21	-28
Cash and cash equivalents at the end of the period	હરંડ	813	હિર્ડક	813

Key metric for the Group

	2024	2023	2024	2023
	Q4	04	Full year	Full year
Growth in net sales	-2%	4%	-7%	24%
EBITA margin	10.0%	9.1%	10.6%	15.1%
EBITA margin, 12 months rolling	10.6%	15.1%	10.6%	15.1%
Operating margin	8.3%	7.4%	9.0%	13.8%
Equity asset ratio	45.3%	39.4%	45.3%	39.4%
Earnings per share before dilution (SEK)	0.42	0.94	1.69	4.18
Earnings per share after dilution (SEK)	0.42	0.94	1.69	4.17
Net sales per employee (SEK thousand)	939	929	3,866	4,211
Result per employee (SEK thousand)	44	છે.	176	438
Quick asset ratio	128%	139%	128%	139%
Cash flows from operating activities	286	462	921	944
Average number of employees	1,943	2,002	1,961	1,935
Number of shares at period end before dilution	205,472,710	203,026,610	205,472,710	203,026,610
Average number of shares before dilution	205,472,710	203,026,610	204,249,660	203,026,610
Average number of shares after dilution	205,472,710	203,026,610	204,453,694	203,454,005

For definition of key metric, see the section Definition alternative key metrics.

The key metrics presented are deemed essential to describing the Group's development as they both constitute the Group's financial objectives (growth in net sales and EBITA margin) and are the key metrics by which the Group is governed. Several key metrics are considered relevant to investors, such as earnings per shares. Other key metrics are presented in order to provide different perspectives on how the Group is developing and are therefore deemed to be of benefit to the reader.

Parent Company income statement

	2024	2023
(SEK m)	Full year	Full year
Revenue
Net sales	140	121
	140	121
Operating expenses
Other external costs	-108	-122
Personnel costs	-83	-59
Other operating expenses	-1	0
Depreciation of tangible assets	0	0
Earnings before amortisation of intangible assets (EBITA)	-53	-80
Amortisation of intangible assets	-2	-2
Operating profit (EBIT)	-55	-62
Result from financial items
Interest expenses	2,120	22
Result after financial items	2,064	-40
Appropriations	ਰੇਤ	-17
Result before tax	2,158	-58
Income taxes	20
Profit for the period	2,177	-58

Total comprehensive income is the same as profit for the parent company since there is nothing accounted for as other comprehensive income.

Parent Company balance sheet

(SEK m)	2024-12-31	2023-12-31
Assets
Intangible assets	2	6
Tangible assets	0	1
Financial assets	6,578	4,418
Total non-current assets	6,581	4,425
Current receivables
Receivables from Group companies	297	450
Current tax receivables	1	1
Other receivables	1	2
Prepaid expenses and accrued income	9	8
Total current receivables	308	462
Cash and bank balances	97	173
Total current assets	405	635
TOTAL ASSETS	6,986	5,060
Equity	3,249	083
Untaxed reserves	29	29
Non-current liabilities
Liabilities to credit institutions	2,353	2,760
Other non-current liabilities	301	282
Total non-current liabilities	2,654	3,042
Current liabilities
Liabilities to credit institutions	152	150
Accounts payable	11	16
Provisions	2	5
Liabilities to Group companies	864	668
Other liabilities	1	146
Accrued expenses and deferred income	22	21
Total current liabilities	1,054	1,006
TOTAL EQUITY, PROVISIONS AND LIABILITIES	6,986	5,060

Notes

Note 1 Revenue

	Rest of	North
Sweden	Europe	America	the world	Total
630	3,440	2,833	679	7,581
574	3,085	2,630	654	6,944
56	354	203	25	637
630	3,440	2,833	679	7,581
574	2,850	2,558	642	6,624
56	590	275	37	957
630	3,440	2,833	679	7,581
				Rest of

Full year 2023		Rest of	North	Rest of
Geographical markets	Sweden	Europe	America	the world	Total
Revenue from external customers	694	3.807	2,964	685	8,150
Category
Goods	653	3,450	2,826	677	7,606
Services	41	356	139	8	544
Total	694	3,807	2,964	685	8,150
Time for revenue recognition
At a given time	653	3,346	2.801	674	7,475
Over time	41	460	163	11	676
Total	694	3,807	2,964	685	8,150

Note 2 Business acquisitions

Acquisitions 2024

On February 2, 2024, the Group acquired 97 percent of the share capital of MConnect') for a fixed purchase consideration of GBP 0.6 million on a debt free basis. The acquisition of MConnect includes a put/call option to acquire the remaining 3 percent after 2027. Both parties have the right to exercise the option and it is considered likely that the option will be exercised, hence the acquisition is recognized at 100 percent with no non-controlling interest. The expected purchase price for the remaining 3 percent is recognized as a liability with any changes in value through the income statement.

On October 1, 2024, the Group entered into an asset acquisition of parts of Icelandic Endor for a fixed purchase price of EUR 1.1 million on a debt-free basis, as well as a maximum present value calculated additional purchase price amounting to EUR 0.2 million.

The acquisitions have not had any material impact on Hexatronic's balance sheet, net sales and earnings for the period.

Acquisitions 2023

On March 3, 2023, the Group completed the asset purchase agreement to acquire all business activity of Rochester Cable ("Rochester") for a fixed purchase consideration of USD 55 million on a debt free basis (excluding ND/NWC adjustment of USD -4.5 million).

On August 18, 2023, the Group acquired 100 percent of the share capital of Fibron XB Ltd ("Fibron") for a fixed purchase consideration of GBP 25 million on a debt free basis (excluding ND/NWC adjustment of GBP -5.5 million), and contingent purchase consideration calculated at net present value of maximum GBP 7 million.

On September 1, 2023, the Group acquired 100 percent of the share capital of ATG Technology Group Limited ("ATG") for a purchase consideration of NZD 0.9 million.

On October 1, 2023, the Group acquired 95 percent of the share capital of USNet for a fixed purchase consideration (excluding ND/NWC adjustment) of USD 5.5 million, and contingent purchase consideration calculated at net present value of maximum USD 0.9 million. The acquisition of USNet includes a put/call option to acquire the remaining 5 percent after 2027. Both parties have the right to exercise the option and it is considered likely that the option will be exercised, hence the acquisition is recognized at 100 percent with no non-controlling interest. The expected purchase price for the remaining 5 percent is recognized as a liability with any changes in value through the income statement.

The table below summarises the purchase price for the acquired assets and assets and assumed liabilities recognized on the acquisition dates. The acquisitions are reported aggregated, as none of the acquisitions have been deemed individually significant.

Purchase price (SEK m)

Cash and cash equivalents	865
Contingent purchase consideration (not paid)	108
Holdback purchase consideration (not paid)	2
Option to acquire remaining 5 percent of USNet (not paid)	14
Total purchase price	988
Recognised amounts for identifiable acquired assets and taken-over liabilities
Cash and cash equivalents	75
Tangible and intangible assets	225
Customer relations	168
Financial assets
Accounts receivable	173
Inventories	168
Other receivables	44
Financial liabilities	-132
Other liabilities	-251
Total identifiable net assets	470
Non-controlling interests	-
Goodwill	518

Acquisition-related costs of SEK 23 million are included in other external costs in the consolidated statement of comprehensive income for the 2023 financial year. Total cash flow, excluding acquisition-related costs, attributable to the business combinations amounted to SEK 790 million. Goodwill is attributable to the earning capacity that the companies are expected to bring.

Subject to the agreement of contingent purchase consideration, the Group will pay a maximum of SEK 98 million for Fibron based on EBITDA for the full year 2023 and SEK 10 million for USNet based on EBITDA for the full year 2023 and 2024.

The fair value of account receivables totals SEK 173 million. Doubtful accounts receivables amount to SEK 3 million and are reserved.

The value of tax-deductible goodwill amounts to SEK 158 million.

Since the acquisition date, net sales of SEK 688 million have been included in the consolidated income statement from the acquired companies during 2023. The acquired companies generated an EBITDA of SEK 80 million during the same period.

If the acquired companies had been consolidated from January 1, 2023, the consolidated income statement for the period January to December would have increased with net sales of SEK 1,178 million and EBITDA of SEK 158 million.

Note 3 Items not affecting cash flow

(SEK m)	2024 Q4	2023 Q4	2024 Full year	2023 Full year
Depreciation/amortisation	107	100	419	340
Revaluation of incentive programmes	2	-7	24	-12
Work in progress, accrued but not invoiced	13	-	-36
Change obsolescence reserve inventory	-9	9	22	26
Other provisions	-16	24	-28	51
Exchange rate differences	-3	0	-1	O
Other		5		র্ব
Total	95	132	401	409

Note 4 Liabilities to credit institutions

			Cash-flow	ltems not affecting cash flow
(SEK m)	2023-12-31	Borrowings	Amortisation of loan	Acquisitions	Reclass- ification	Currency effects	Cost of financing	2024-12-31
Non-current liabilities to credit institutions	2.774				-556	139	র্ব	2,361
Current liabilities to credit institutions	150		-556		556	ന്ദ		152
Total	2,924	0	-556	O	0	142	प	2.513

Note 5 Financial liabilities valued at fair value via the income statement

		Cash flow
(SEK m)	2023-12-31	Payments	Acquisitions during the year	Reclassi- fication	Translation- difference	Revaluation over the income statement	2024-12-31
Additional purchase price acquisition option	461	-159	21	20	র্ব	5	352

Reconciliation between IFRS and key metrics used

In this interim report, Hexatronic presents certain financial parameters that are not defined in IFRS known as alternative key metrics. The Group believes that these parameters provide valuable supplementary information for investors as they facilitate an evaluation of the company's results and position. Since not all companies calculate financial parameters in the same way these metrics are not always comparable with those used by other companies. Investors should see the financial parameters as a complement to rather than a replacement for financial reporting in accordance with IFRS.

Organic growth, SEK m, %	Q4 2024	Full year 2024	Full year 2023
Net sales	1,824	7,581	8,150
Exchange-rate effects	-13	26	-294
Acquisition driven	-23	-528	-1,454
Comparable net sales	1,789	7,079	6,402
Net sales corresponding period previous year	1,861	8,150	6,574
Organic growth	-72	-1,071	-172
Organic growth %	-4%	-13%	-3%
Annual growth, rolling 12 months, %		Full year 2024	Full year 2023
Net sales rolling 12 months		7,581	8,150
Annual growth, rolling 12 months		-7%	24%
Quick asset ratio, %		2024-12-31	2023-12-31
Current assets		3,355	3,470
Inventories		-1,442	-1,393
Current assets less inventories		1,913	2,077
Current liabilities		1,491	1,493
Quick asset ratio		128%	139%
Core working capital, SEK m		2024-12-31	2023-12-31
Inventories		1,442	1,393
Accounts receivable		1,121	1,124
Accounts payable		-679	-510
Core working capital		1,884	2,008

Net debt, SEK m	2024-12-31	2023-12-31
Non-current liabilities to credit institutions	2,361	2,774
Current liabilities to credit institutions	152	150
Overdraft facilities
Cash and cash equivalents	-633	-813
Interest-bearing net debt	1,880	2,111
Non-current lease liabilities	425	476
Current lease liabilities	132	91
Net debt	2,438	2,678

EBITDA and EBITDA (proforma) R12, SEK m	Full year 2024	Full year 2023
Operating profit (EBIT), R12	680	1,122
Amortisation of intangible assets, R12	123	113
EBITA, R12	803	1,234
Depreciation of tangible assets, R12	297	228
EBITDA, R12	1,0999	1,462
EBITDA (proforma), R12	1,106	1,574

Leverage	Full year 2024	Full year 2023
Net debt	2,438	2.678
EBITDA (proforma), R12	1,106	1.574
Net debt / EBITDA (proforma), R12	2.2	1.7

Definition alternative key metrics

Gross profit

Net sales minus costs for raw materials and goods for resale.

Gross profit margin

Gross profit as a percentage of net sales.

EBITDA (proforma), R12

Operating profit before depreciation and amortization plus pro forma acquired EBITDA, before closing, for the last twelve months.

EBITA

Operating profit before amortization of intangible noncurrent assets.

EBITA margin

EBITA as a percentage of net sales.

EBIT

Operating profit. Revenue minus all costs related to operations, but excluding net financial items and income tax.

EBIT margin

Operating profit as a percentage of net sales.

Equity asset ratio

Total equity as a percentage of total assets.

Number of shares

Number of outstanding shares at the end of the period.

Organic growth

Organic growth is calculated as net sales adjusted for exchange rate effects and acquired businesses in relation to the previous year's net sales adjusted for acquired businesses.

Acquisition-driven growth

Net sales from acquired businesses during the following twelve months after the acquisition date.

Annual growth

Average annual growth is calculated as the Group's total net sales during the period compared with the corresponding period last year.

Quick asset ratio

Calculated as current assets minus inventories divided by current liabilities.

Core-working capital

Calculated as inventory plus accounts receivable minus accounts payable.

Net debt

Interest-bearing liabilities, including lease liabilities, minus cash and cash equivalents.

Leverage

Net debt to EBITDA (pro forma), R12.

Average number of outstanding shares

Weighted average of the number of outstanding shares during the period.

Average number of outstanding shares

after dilution

Weighted average of the number of shares outstanding during the period plus a weighted number of shares that would be added if all potential shares were converted into shares.

Earnings per share before dilution

Profit for the period attributable to parent company shareholders divided by the average number of outstanding shares before dilution

Earnings per share after dilution

Profit for the period attributable to parent company shareholders divided by the average number of outstanding shares after dilution.

Equity per share

Total equity is divided by the number of shares outstanding.

Number of employees

Number of employees at the end of the period.

This is Hexatronic

Hexatronic Group AB (publ) enables non-stop connunities worldwide. We partner with customers across four continents – from telecom operators to network owners – offering leading-edge fiber technology and solutions for any and all conditions.

Hexatronic Group AB (publ) was founded in 1993 in Sweden and is listed on Nasdaq Stockholm. Our global product brands include Viper, Stingray, Raptor, InOne, and Wistom®.

Hexatronic Group AB (publ) Org nr. 556168-6360 Sofierogatan 3a, 412 51 Gothenburg, Sweden www.hexatronic.com