Disclaimer This presentation and the information contained herein are being presented by HANZA Holding AB (publ) (the “Company”). By at tending a meeting where this presentation is presented, or by reading this presentation, you agree to be bound by the following limitations and notifications. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities and does not constitute any form of commitment or recommendation on the part of the Company. This presentation does not purport to be all-inclusive or to contain all the information that prospective investors may desire in analyzing and deciding whether or not to hold or transact in any of the Company’s securities. Furthermore, recipients of this presentation should not treat the contents of this presentation as advice relating to legal, taxation, financial or other matters and are advised to consult their own professional advisors concerning the acquisition, holding or disposal of any of the Company’s securities. Certain information contained in this presentation has been obtained from published sources prepare d by other parties that the Company has deemed to be relevant. However, neither the Company nor any other person assumes any responsibility whatsoever and makes no representation or warranty, express or implied, for the contents of this presentation, including its accuracy, completeness or verification for any other statement made or purported to be made by any of them, or on their behalf. Nothing in this presentation is, or shall be relied upon as, a representation or promise made, whether as to the past, present or future. Accordingly, no responsibility is accepted by the Company, its subsidiaries or associates or any of their directors, officers, employees or agents, in respect thereof. This presentation contains forward- looking statements that reflect the Company’s current views with respect to certain future events and potential financial performance. While the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will materialize. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors. To the extent that this presentation contains opinions, estimates, forecasts or other forward-looking statements, no guarantees or undertakings that these are correct or complete are given by the Company or any of its members, advisors, officers or employees or any other person. Forecasts and assumptions which are subject to economic and competitive uncertainty are outside such person’s control and no guarantee can be given that projected results will be achieved or that o utcomes will correspond with forecasts. Information in this presentation may be changed, added to or corrected without advance notification. The Company does not undertake any obligation to publicly update or revise any information contained herein. This presentation as well as any other information provided by or on behalf of the Company shall be governed by Swedish law. The courts of Sweden, with the District Court of Stockholm as the first instance, shall have exclusive jurisdiction to settle any conflict or dispute arising out of or in connection with this presentation or related matters. 1 (10 (10) 1 Q2 report 2020
Q2 2020 AGENDA ▪ HANZA Q2 Challenges and Possibilities ▪ Financials ▪ Outlook ▪ Q&A Erik Stenfors, CEO Lars Åkerblom, CFO 1 (10 (10) 2 Q2 report 2020
The HANZA Group The Cluster Model 1 At a glance ▪ HANZA manufactures products for other companies Customers are well-known companies from different segments, e.g. ▪ ABB, Epiroc, GE, Getinge, Oerlikon Barmag, SAAB and Siemens. The Six Clusters of HANZA 2 Founded in August 2008 – Still under development. ▪ Sales 2019: SEK 2.1 bn. Listed on NASDAQ Stockholm. ▪ Our business model – A new way of manufacturing 1. HANZA offers a variety of different manufacturing technologies 1 through factories grouped in Manufacturing Clusters Advisory Services: Streamlining Supply-chains 3 2. Today HANZA has a total of approx. 1,800 employees in six Clusters: 2 Sweden, Finland, Germany, Baltics, Central Europe and China 3 3. HANZA also offers advisory services to assist product-owning companies to simplify and streamline their supply-chain 1 (10 (10) 3 Q2 report 2020
HANZA in Q2, 2020 “Biggest drop ever in April” Understanding and acting on the virus outbreak ➢ Corona-processes introduced to protect all colleagues ➢ Contingency plans established, “real - time management“ introduced ➢ The Situation: As for all companies, the sales development in the Existing customer Base short term will be determined by the current customer base decides the outcome of Q2 Hence, an action program, “Resistor”, was launched in April: ➢ Sweden and Estonia: Merger of factories with same technology. Staff reduction of totally approx. 90 p. Merger of ➢ Germany: In the midst of integration. factories A forced and quick streamlining of the business in Sweden and Estonia 1 (10 (10) 4 Q2 report 2020
HANZA in Q2, 2020 But also some positive development HANZA's business model in the spotlight ➢ Decentralization philosophy has created an agile organization In addition to cost and environmental benefits, HANZA creates a less vulnerable supply chain ➢ No confirmed covid-19 infections ➢ Increased amount of customer dialogues in Q2, and some finalized customer activities, despite travel restrictions: A MIG TM analysis was presented in Finland, which provides ➢ a double-digit percentage reduction in manufacturing costs. Assignment won to develop a complete DNA analyzer ➢ for a leading company in molecular diagnostics. Product development to be completed in Q1/2021, to be ready for volume production. Production agreement with a new customer in logistics management ➢ Widened cooperation with an existing industrial customer. ➢ 1 (10 (10) 5 Q2 report 2020
Q2 Financials 5-y EBITDA Q2 The pandemic had a significant negative impact on earnings ➢ Excluding costs for the action program, EBITDA during Q2 amounted to approximately SEK 36 million (38). ➢ Continued focus on cash flow, including a slowdown in investments and cancelled dividends ➢ Business in Åtvidaberg sold through an MBO deal, not affecting the cost of the action program ➢ Release of “investment - brake” due to the new sales. Order placed in June of manufacturing equipment of approximately SEK 20 million. 1 (10 (10) 6 Q2 report 2020
Q2 Financials Profitability per Q / Rolling 12 m. (MSEK) Sales per Q / Rolling 12 m. (MSEK) Balance Sheet KPI 30 Jun 30 Jun (MSEK) 2020 2019 Equity 484 442 Equity/Asset ratio 32% 36% Cash-flow operations (12 m.) 27 47 Cash 98 85 2 1 3 1. The sudden sales drop amounted to approx. 10 % in total 2. EBITA in Q2 is approx. -13 MSEK (EBITA before costs of action program, approx. 15 MSEK) 3. Continued positive cash-flow from operation / stabile financial situation 9 (10) 7 Q2 report 2020
Q2 Action program ➢ The total cost for the action program in Sweden, Estonia and HANZA Financial Segments Germany amount to SEK 27.5 million and affects Q2, 2020. ➢ Of the total OTC, SEK 10.5 million is adjustments of fixed assets ➢ The program is expected to improve EBIT in Clusters Sweden, Baltics and Germany as of the fourth quarter, 2020. ➢ Due to the action program, only a small amount of support “Main Markets” (Sweden, Finland, Germany) measures from authorities have been utilized, in total approx. Sales: 306 (269) MSEK. EBITA: 0 (19) MSEK SEK 1 million during the quarter “Other Markets” (Estonia, Central Europe, China) Sales: 253 (247) MSEK. EBITA: -13 (2) MSEK ➢ New loan covenants, adjusted for the effect of Covid-19 9 (10) 8 Q2 report 2020
Outlook Short term : ▪ Continued impact of covid-19 in HANZA customer base. There is also still a risk of a second wave of covid-19 Long term : ▪ ➢ Today’s sales fluctuations are temporary and caused by the pandemic. HANZA’s customers are solid and will prevail until demand is back to normal ➢ New sales opportunities, due to a new awareness of the need to streamline supply chains ➢ Increased number of traditional one-technology contract manufacturers available for acquisitions Long term HANZA sees great potential for profitable growth 1 (10 (10) 9 Q2 report 2020
Q&A 1 (10 (10) 10 Q2 report 2020
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