HansaMatrix
Half Year financial report

HansaMatrix Consolidated Interim Financial Report for the second quarter and 6 months of 2021

During the second quarter of 2021 HansaMatrix unaudited consolidated revenue increased by 14% compared to the second quarter of 2020 and reached 6.042 million EUR volume; reported EBITDA result was 118% higher, and reached 1.151 million EUR, net loss amounted to 0.327 million EUR. In the reporting period quarterly EBITDA margin of 19.0% was achieved. During the period of 6 months of 2021 revenue reached 11.870 million EUR, increasing by 13%; reported EBITDA result was 2.392 million EUR, up by 147% in comparison with 6 months of 2020 and net loss amounted to 0.281 million EUR. Results represent 6 month EBITDA margin of 20.1%.

Riga, 2021-08-13 08:00 CEST -- During the second quarter of 2021 the Group reported quarterly turnover of 6.042 million EUR –increase by 14% in comparison to the same period of 2020. The second quarter of 2021 revenue results showed 4% volume increase in comparison with previous quarter – 2021 Q1.

During first 6 months of 2021 the Company reported sales volume increase by 13% compared to the same period of 2020, reaching 11.870 million EUR. However, 2021 6 month revenue decreased by 2% compared with 2020 second half of year.

In Q2 and 6 months of 2021 the demand from data transmission network market sector along with telecom network products continued to experience strong growth, resulting in strong production order book.

During 2021 Q2 the Group reported quarterly EBITDA result of 1.151 million EUR and operated with net loss result of 0.327 million EUR. The reported EBITDA result shows 118% increase in comparison with Q2 2020 but 7% decrease compared to previous quarter of 2021 Q1. In Q2 2021 the Group reported net loss 0.327 million EUR as compared to net loss of 0.383 million in 2020 Q2. Quarterly results represent EBITDA margin of 19.0%.

During first 6 months of 2021 the Company reported half year EBITDA result of 2.392 million EUR and half year net loss result of 0.281 million EUR. The reported EBITDA result shows 147% increase in comparison with 2020 6 months and 13% increase compared to the second half year of 2020. In 6 months of 2021, the Company operated with a net loss of 0.281 million EUR as compared to the net loss of 0.818 million EUR in 6 months of 2020. In 6 months of 2021, the Company operated with 20.1% EBITDA margin.

EBITDA result and comparably high level of EBITDA margin in second quarter and 6 months of 2021 is explained by the increased proportion of higher value-added products in the manufactured product mix in the reporting period. In Q1 and Q2 2021 the Group carried out revaluation of fair value of warrants issued in relation to European Investment Bank (EIB) financing contract in amount of 0.504 million EUR in Q2 2021 and in amount of 0.713 million EUR in 6m 2021 due to increasing average weighted HansaMatrix stock market price, which explains reported net loss in Q2 2021 and 6m 2021.

In addition, net profit of the Group in Q2 and 6m 2021 is negatively influenced by several non-cash related items, including loss from investments in associates, EIB warrant fair value change provisions, EIB loan fair value change provisions and interest expense related to leases. For better inter-period profitability comparisons, the Group calculates normalized net profit which in Q2 2021 amounted to 0.488 million EUR and in 6m 2021 amounted to 1.044 million EUR, respectively generating 8.08% and 8.80% Normalized net profit margin.

Trailing Twelve Months (TTM) period ending with June 30, 2021 revenue reached 23.985 million EUR, showing 3% increase compared to TTM sales for the period ended at 2020 Q2. EBITDA result for the TTM period reported to be 4.505 million EUR, an increase of 70% in comparison with 12-month period ended at 2020 Q2. The TTM period resulted in a net loss of 0.015 million EUR. Averaged 18.8% EBITDA margin for TTM period is reported.

Attachments:

·         HansaMatrix Unaudited Interim Condensed Consolidated Financial Statements for the 6 Month Period Ended June 30, 2021

The definitions of alternative performance indicators (APIs) used in the news release can be found on page 39 of the HansaMatrix Unaudited Interim Condensed Consolidated Financial Statements.

Investor and media contact:

Māris Macijevskis, CFA
Management Board Member, Finance director
Phone: (+371) 6780 0002
E-mail: invest@hansamatrix.com

http://www.hansamatrix.com

About HansaMatrix

HansaMatrix is a fast-growing, high-technology company offering product design, industrialization and complete manufacturing services in data networking, Internet of Things, industrial and other high added value business segments.