HANZA AB: HANZA interim report January-September 2024

Third quarter 2024

• Net sales increased by 16% to SEK 1,107 million (955).

Adjusted for acquisitions and currency, net sales decreased by 4%.

• Operating profit (EBITA) amounted to SEK 82 million (89), which corresponds to an operating margin of 7.4% (9.3). During the quarter, it was decided on the third and final part of the action program implemented in 2024, which resulted in one-time costs of SEK 33 million of which SEK 25 million affects the operating profit. Revaluation of the acquisition purchase price for Orbit One affected the result positively by SEK 33 million. Adjusted for the items above, the operating profit amounted to SEK 74 million which corresponds to an operating margin of 6.7%. The margin for comparable units amounted to 7.1%.
• Profit after tax amounted to SEK 40 million (49), which corresponds to SEK 0.91 (1.21)

per share before dilution and SEK 0.90 (1.21) after dilution.

• Cash flow from operating activities amounted to SEK 114 million (5).

January - September 2024

• Net sales increased by 16% to SEK 3,581 million (3,087).

Adjusted for acquisitions and currency, net sales decreased by 6%.

• Operating profit (EBITA) amounted to SEK 199 million (268), which corresponds to an operating margin of 5.6% (8.7). The action program that HANZA implemented during 2024 affected the result negatively by SEK 65 million in all. Revaluation of acquisition purchase price affected the result positively by SEK 53 million. Energy subsidy improved the result previous year by SEK 7 million. Adjusted for these items, the operating profit amounted to SEK 211 million (261), which corresponds to an operating margin of 5.9% (8.5). The margin for comparable units amounted to 6.7%.
• Profit after tax amounted to SEK 80 million (167), which corresponds to SEK 1.84 (4.21) per share

before dilution and SEK 1.83 (4.19) after dilution.

• Cash flow from operating activities amounted to SEK 280 million (180).

CEO Erik Stenfors comments on the report:

"HANZA has a strong customer base and despite the economic downturn, we see a limited organic decline during the quarter of 4%. Due to the slowdown, we have placed great emphasis on new sales. During the quarter, we were able to report two new, larger MIG[TM] agreements, which is an important proof of how well our offering works during a weaker economy. It is also satisfying that we maintain a strong cash flow, SEK 114 million in Q3, while tying up working capital in our new projects"

"The first quarter of the year was the weakest in terms of earnings due to a combination of economic downturn and the integration of Orbit One - a company that at the time of acquisition had lower profitability than HANZA. Since then, we have seen a positive development of the Group's operating margin, from 5.3% in Q1 to 5.7% in Q2 and now 6.7% in Q3. In addition, the underlying margin increase from Q2 to Q3 is higher as the quarter includes July, the weakest month in terms of earnings due to the holiday period."

"In Q3, we conducted a final review of the Group as part of the action program we reported on during the year. During the quarter, this resulted in non-recurring costs of SEK 33 million, which were balanced against non-recurring income of SEK 33 million linked to a reduced purchase price for Orbit One. The one-off costs have no impact on the operating margin of 6.7% for the third quarter. However, earlier parts of the action program are starting to have the desired effect. In summary, we expect continued margin improvement in the fourth quarter and reiterate our margin target of at least 8% for the full year 2025."

This disclosure contains information that HANZA AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 29-10-2024 07:30 CET.