Slide 1: Q2 2024 Presentation
Q2 2024 Presentation July 16, 2024 Henrik Larsson Lyon Pernilla Lindén Martin Åberg CEO CFO Deputy CEO
Slide 2: Agenda
Q2 2024 Presentation Agenda 1. Hexatronic at a glance 2. Q2 highlights 3. Financial overview 4. Business overview 5. Summary and market outlook 6. Q&A 2
Slide 3: Hexatronic at a glance
Hexatronic at a glance
Slide 4: Expanding market for fiber optic infrastructure
Q2 2024 Presentation Expanding market for fiber Reliable network is a optic infrastructure must in modern society • Low number of homes connected via fiber optic networks across strategic growth markets. • 5G deployment drives the need for fiber optic networks. • Increasing use of data-intensive tec
Slide 5: Sustainability is high on our agenda
Sustainability is high Priority targets based on our 2030 roadmap on our agenda • Climate-neutral operations • 100% equal pay • Min. 40% gender equality (all employees)
Slide 6: Several government initiatives across strategic growth markets with low fiber penetration rates
Q2 2024 Presentation Several government initiatives across strategic growth markets with low fiber penetration rates Penetration rates (subscribers / no. of homes) USA - BEAD September 2023 Germany 10% 9x Swedish households High-speed broadband Total subsidies allocated coverage Austria 11% Italy 16
Slide 7: Hexatronic enables non-stop connectivity for communities worldwide
Q2 2024 Presentation Hexatronic enables non-stop connectivity for communities worldwide Proven track record of organic growth and solid profitability 7.6 BSEK 34% 11.3% Sales, R12* 5-year sales CAGR* EBITA margin, R12* 0.9 BSEK 48% ~2,000 EBITA, R12* 5-year EBITA CAGR* Employees * As per the end of
Slide 8: Addressing several customer needs creates additional growth avenues and diversification
Q2 2024 Presentation Addressing several customer needs creates additional growth avenues and diversification 73 %* 15 % 12 % Fiber solutions Engineered Essential services for connected solutions for and solutions for societies challenging data centers conditions Share of group sales, Q2 2024
Slide 9: Q2 highlights
Q2 highlights 9
Slide 10: Continued strong cash flow and modest recovery in Fiber Solutions
Q2 2024 Presentation Continued strong cash flow and modest recovery in Fiber Solutions Financial highlights • Sequential net sales growth of 14% to SEK 2,024m driven by modest recovery in Fiber Solutions and continued growth in new focus areas. • Negative growth of 10% compared to Q2 last year, and
Slide 11: Significant events
Q2 2024 Presentation Significant events • Hexatronic announced new additions to the company's executive management. • Jakob Skov, Head of focus area Harsh Environment • Pernilla Grennfelt joined Hexatronic as Head of Investor Relations. • The AGM resolved, for the period until the next Annual Genera
Slide 12: Strong five-year track record of net sales and earnings growth
Q2 2024 Presentation Strong five-year track record of net sales and earnings growth Net sales development EBITA development EPS development Net sales (SEKm) EBITA (SEKm) / EBITA% Earnings per share after dilution (SEK) 48% CAGR 55% 9 000 34% 1 400 18% CAGR 8 000 CAGR 16,6% 16% 1 200 15,1% 7 000 8 15
Slide 13: Financial highlights
Financial highlights 13
Slide 14: Sequential improvement and challenging comparison
Q2 2024 Presentation Sequential improvement and challenging comparison April-June YTD Q2 Q2 Jan-Jun Jan-Jun EBITA Bridge (MSEK) 2024 2023 ∆% 2024 2023 ∆% Net sales 2 024 2 258 -10% 3 805 4 373 -13% Organic Growth -18% -22% Gross Margin 42,0% 44,1% 41,3% 44,4% EBITA 222 405 -45% 390 769 -49% EBITA Ma
Slide 15: Continued strong operational cash flow
Q2 2024 Presentation Continued strong operational cash flow Continued strong cash conversion Investments are in the latter part of Cash flow bridge due to stabilized working capital the cycle MSEK Operating cash flow after WC changes (MSEK), % of Capex investments (MSEK), % of net sales Cash flow fr
Slide 16: Continued reduced net debt and good financial flexibility
Q2 2024 Presentation Continued reduced net debt and good financial flexibility Net debt decreased 118 MSEK compared to last quarter, but leverage ratio effected by strong profitability in Q2 2023 Continued solid financial position Net debt (SEKm) / EBITDA proforma incl. IFRS 16* Net debt (incl. IFRS
Slide 17: Business overview
Business overview 17
Slide 18: Performance by focus area
Q2 2024 Presentation Performance by focus area Fiber Solutions – modest recovery in Harsh Environment – capitalizing on Data Center – organic growth driven Q2 2024 but with a still softer demand trends within defense and energy by hyperscale buildout Net sales, SEKm Net sales, SEKm Net sales, SEKm -
Slide 19: Sales decline in Europe (excl. Sweden) partly mitigated by expansion in new focus areas
Q2 2024 Presentation % of Group revenue (R12) Sales decline in Europe (excl. Sweden) 45% partly mitigated by expansion in new focus areas Business development Net sales and net sales growth 1 200,0 • Sales decline compared to corresponding period last year due 127% 122% 83% 60% 55% 47% 19% 0% -21% -
Slide 20: Continued initiatives to position the company for long-term growth in North America
Q2 2024 Presentation % of Group revenue (R12) Continued initiatives to position the 37% company for long-term growth in North America Business development Net sales and net sales growth 900 • A decline of 9% mainly due to decreased sales of duct, partly 184% 129% 159% 104% 73% 58% 4% 15% -8% -9% 800
Slide 21: Weaker FTTH market in Sweden impacted sales growth
Q2 2024 Presentation % of Group revenue (R12) Weaker FTTH market in 9% Sweden impacted sales growth Business development Net sales and net sales growth 300,0 • Sales decrease by 6% driven by softer FTTH market. 22% 64% 45% 11% 15% -28% -15% -19% -8% -6% 0% 250,0 Market development -10000% 200,0 • Hi
Slide 22: Strong performance in APAC driven by FTTH projects
Q2 2024 Presentation % of Group revenue (R12) Strong performance in APAC 9% driven by FTTH projects Business development Net sales and net sales growth • Sales growth of 17% primarily explained by delivery of FTTH 200,0 117% 114% 22% -13% 20% 7% 34% 12% -25% 17% 180,0 0% projects in the Pacific. 160
Slide 23: Summary and Market outlook
Summary and Market outlook 23
Slide 24: Summary
Q2 2024 Presentation Summary • Sequential net sales growth of 14% to SEK 2,024m driven by modest recovery in Fiber Solutions and continued growth in new focus areas. • Price pressure in Fiber Solutions expected to remain during 2024. • Signed contract with Novos Fiber on FTTH systems in the US worth
Slide 25: Market outlook
Q2 2024 Presentation Market outlook • We expect a strong market within Harsh Environment and Data Center for 2024 and for a long time to come, fuelled by investments in defense, energy, and AI. • In Fiber Solutions, we expect the market to remain weak in the third quarter and then gradually increase
Slide 26: Q&A
dexatronic Q&A
Slide 27: Q2 2024 Presentation
Q2 2024 Presentation
Slide 28: AAS
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