Aug 5, 2022

HansaMatrix Consolidated Interim Financial report for the second quarter and 6 months of 2022

During first 6 months of 2022 the Group reported sales volume increase by 6% compared to the same period of 2021 and revenue reached 12.585 million EUR. During first 6 months of 2022 the Group reported half year EBITDA result of 1.238 million EUR and normalized net profit amounted to 0.031 million EUR. In 6 months of 2022, the Company operated with 9.8% EBITDA margin. During the second quarter of 2022 the Group reported revenue in amount of 6.555 million EUR, representing increase by 8% in comparison to the same period of 2021. The Group reported quarterly EBITDA result of 0.429 million EUR. Quarterly results represent EBITDA margin of 6.55%.

In the second quarter of 2022 the Group reported revenue from contracts with customers of 6.555 million EUR, representing increase by 8% in comparison to the same period of 2021. The 2022 Q2 sales results showed 9% sales volume increase in comparison with previous quarter – 2022 Q1.

During first 6 months of 2022 the Group reported sales volume increase by 6% compared to the same period of 2021 and revenue reached 12.585 million EUR.

The growth of revenue was supported by strong demand in industrial and data networks sectors that coupled with active sales process and the global semiconductor deficit has resulted in significant order book volume as at the end of Q2 2022, amounting to 21,8 million EUR, growing by 13% compared to the respective figure as at the end of Q1 2022.

During 2022 Q2 the Group reported quarterly EBITDA result of 0.429 million EUR and operated with net loss result of 0.686 million EUR. The reported EBITDA result shows 63% decrease in comparison with Q2 2021 and 47% decrease compared to previous quarter of 2022 Q1. In Q2 2022 the Group reported net loss 0.686 million EUR as compared to the net loss of 0.327 million EUR in Q2 2021 and net loss of 0.046 million EUR in Q1 2022 Quarterly results represent EBITDA margin of 6.55%.

During first 6 months of 2022 the Group reported half year EBITDA result of 1.238 million EUR and half year net loss result of 0.732 million EUR. The reported EBITDA result shows 48% decrease in comparison with 2021 H1 and 8% decrease compared to previous 6-month period of 2021 H2. In 6 months of 2022, the Company operated with a net loss of 0.732 million EUR as compared to the net loss of 0.281 million EUR in H1 2021 and net loss of 1.671 million EUR in H2 2021. In 6 months of 2022, the Company operated with 9.8% EBITDA margin.

Q2 and 6m 2022 EBITDA profitability decrease compared to Q2 2021 and 6m 2021 is explained by changes in the product mix of manufactured products, where higher-added value products proportion decreased, which was influenced by the global semiconductor deficit.

Net profit of the Group in Q2 2022 is negatively influenced by several non-cash related items, the most significant including loss from investments in associates in amount of 0.565 million EUR, EIB loan fair value change provisions in amount of 0.088 million EUR and interest expense related to leases in amount of 0.048 million EUR.

The non-cash items negatively influencing net profit of the Company in 6m 2022 include loss from investments in associates 0.785 million EUR, EIB loan fair value change provisions – 0.174 million EUR, USD/EUR exchange rate fluctuations – 0.088 million EUR and interest expense related to leases – 0.085 million EUR.

For better inter-period profitability comparisons, the Company calculates normalized net profit, which in Q2 2022 amounted to negative 0.150 million EUR compared to Q2 2021 0.547 million EUR and which in 6m 20202 amounted to 0.031 million EUR, decreasing b 97% on year over year basis. 6m 2022 normalized net profit margin amounted to 0.2%.

In 6m 2022 (including Q2 2022) the Group carried out revaluation of fair value of warrants issued in relation to European Investment Bank (EIB) financing contract, decreasing warrant balance sheet value by 0.4125 million EUR (0.248 million EUR in Q2 2022), due to decreasing average weighted price of HansaMatrix stock in 6m 2022 (in Q2 2022), which by the same amount improved net profit in 6m 2022 (in Q2 2022).

TTM – trailing twelve-month period sales ending with June 30, 2022, reached 22.677 million EUR, decreasing 5% compared to TTM sales for the period ended at 2021. EBITDA result for the TTM 12-month period reported to be 2.578 million EUR, a decrease of 42% in comparison with 12-month period ended at 2021 Q2, and resulted in a net loss of -2.402 million EUR. In the end of Q2 2022 averaged EBITDA margin for TTM period of 11.37% was reported.

The definitions of alternative performance indicators (APIs) used in the news release can be found on page 46 of the HansaMatrix Unaudited Interim Condensed Consolidated Financial Statements.