Disclaimer This presentation and the information contained herein are - - PowerPoint PPT Presentation

disclaimer
SMART_READER_LITE
LIVE PREVIEW

Disclaimer This presentation and the information contained herein are - - PowerPoint PPT Presentation

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


slide-1
SLIDE 1

1 (10 (10)

Disclaimer

This presentation and the information contained herein are being presented by HANZA Holding AB (publ) (the “Company”). By attending 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 prepared 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

  • ther 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 outcomes 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

Q2 report 2020

slide-2
SLIDE 2

1 (10 (10)

2

Q2 report 2020

Challenges and Possibilities

Q2 2020

Erik Stenfors, CEO Lars Åkerblom, CFO

AGENDA

▪ HANZA Q2 ▪ Financials ▪ Outlook ▪ Q&A

slide-3
SLIDE 3

1 (10 (10)

3

Q2 report 2020

The HANZA Group

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. ▪ 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 through factories grouped in Manufacturing Clusters 2. Today HANZA has a total of approx. 1,800 employees in six Clusters: Sweden, Finland, Germany, Baltics, Central Europe and China 3. HANZA also offers advisory services to assist product-owning companies to simplify and streamline their supply-chain

The Cluster Model The Six Clusters of HANZA Advisory Services: Streamlining Supply-chains

1 2 3 1 2 3

slide-4
SLIDE 4

1 (10 (10)

4

Q2 report 2020

HANZA in Q2, 2020

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 short term will be determined by the current customer base 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. ➢ Germany: In the midst of integration. A forced and quick streamlining of the business

Merger of factories in Sweden and Estonia “Biggest drop ever in April” Existing customer Base decides the

  • utcome
  • f Q2
slide-5
SLIDE 5

1 (10 (10)

5

Q2 report 2020

But also some positive development

➢ Decentralization philosophy has created an agile organization ➢ No confirmed covid-19 infections ➢ Increased amount of customer dialogues in Q2, and some finalized customer activities, despite travel restrictions:

➢ A MIGTM 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.

HANZA in Q2, 2020

HANZA's business model in the spotlight In addition to cost and environmental benefits, HANZA creates a less vulnerable supply chain

slide-6
SLIDE 6

1 (10 (10)

6

Q2 report 2020

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

  • f approximately SEK 20 million.

Q2 Financials

5-y EBITDA Q2

slide-7
SLIDE 7

9 (10)

7

Q2 report 2020

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

Profitability per Q / Rolling 12 m. (MSEK)

Balance Sheet KPI (MSEK) 30 Jun 2020 30 Jun 2019 Equity 484 442 Equity/Asset ratio 32% 36% Cash-flow operations (12 m.) 27 47 Cash 98 85

3

Sales per Q / Rolling 12 m. (MSEK)

1

Q2 Financials

2

slide-8
SLIDE 8

9 (10)

8

Q2 report 2020

➢ The total cost for the action program in Sweden, Estonia and 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 measures from authorities have been utilized, in total approx. SEK 1 million during the quarter ➢ New loan covenants, adjusted for the effect of Covid-19

Q2 Action program

HANZA Financial Segments “Main Markets” (Sweden, Finland, Germany) Sales: 306 (269) MSEK. EBITA: 0 (19) MSEK “Other Markets” (Estonia, Central Europe, China) Sales: 253 (247) MSEK. EBITA: -13 (2) MSEK

slide-9
SLIDE 9

1 (10 (10)

9

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

  • f 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

slide-10
SLIDE 10

1 (10 (10)

10

Q2 report 2020

Q&A